Employee benefit plan income grew to $530,000 for the second quarter of 2010 compared to $447,000 for the second quarter of 2009 due to the addition of more customers to this product line. Year-to-date employee benefit plan income totaled $951,000 up from $813,000 a year ago. "This product offering is attractive to the small to medium sized business in our market and gives us just one more competitive advantage in attracting and retaining commercial accounts in our market," noted Langland. "We also benefit from the two wealth management affiliates in which we have an ownership interest, Elliott Cove Capital and Pacific Wealth Management. Both of these firms add diversification to our income stream and to our customers' financial choices and they also help us gain a larger share of customer assets."Income from Northrim's mortgage affiliate contributed $182,000 to second quarter revenues, down from $764,000 in the second quarter a year ago, which was boosted by the strong refinance activity resulting from the drop in mortgage rates last year. "While this part of our business is highly interest rate sensitive, it also contributes to revenues and helps build customer relationships," Langland continued. Gain on sale of OREO and rental income from one of the larger projects in the portfolio, also contributed to revenues in the quarter and the year to date periods. "We continue to generate rental income from the condo conversion project added to OREO last year. For the first six months of this year, this project provided almost a 5% return on investment," said Schierhorn. Second quarter operating expenses were flat from the first quarter and decreased 3% year-over-year, reflecting reduced insurance expenses, OREO management costs, and professional and outside services. Noninterest expense in the second quarter of 2010 was $10.2 million compared to $10.5 million in the second quarter a year ago. Noninterest expense in the first half of 2010 was $20.3 million compared to $21.1 million in the like period a year ago.