Non-interest income for the three-month period ended September 30, 2010 was $1.2 million, compared to $1.1 million for the same period in 2009. Included in non-interest income were gains on the sale of securities of $399,000 and $273,000 for the respective quarterly periods in 2010 and 2009. DNB employs a defensive and conservative approach to balance sheet management as a hedge against rising interest rates, by investing in securities with short durations, strong cash flows, and low price volatility. This approach allows us to grow loans and at the same time use gains in the investment portfolio to offset lower yields and non-recurring costs.Non-interest expense increased approximately $169,000 or 4.34%, compared to the third quarter of 2009. An increase in salaries and employee benefits due to staff increases and a one time severance payment, combined with increased occupancy expense accounted for most of the variance. As previously mentioned management has made additions to the commercial lending and wealth advisory staffs and has also made necessary infrastructure improvements resulting in higher occupancy costs. William J. Hieb, President and COO said, "Management remains committed to rigorous control of expenses, but recognizes that it has to continue to invest in people and infrastructure in order to grow and continue improving earnings. We will continue to invest to improve our skills and competitiveness." Total assets were reduced by $27.4 million, to $607.0 million at September 30, 2010 compared to $634.0 million at December 31, 2009. This reduction was primarily due to a $27.6 million decrease in cash and cash equivalents and a $22.0 million decrease in investment securities, offset by a $25.8 million increase in net loans and leases. The overall reduction in assets is part of an ongoing effort to reduce the cost of funds and improve core earnings by substituting loans for investment securities.