Non-interest expenses increased $4.30 million, or 34 percent, to $16.77 million in the second quarter of fiscal 2013 from $12.47 million in the same quarter last year, primarily as a result of increases in salaries and employee benefits, premises and occupancy, equipment, and sales and marketing expenses, partly offset by lower professional expenses, deposit insurance premiums and regulatory assessments and other operating expenses. The increase in salaries and employee benefits, premises and occupancy and sales and marketing expenses was primarily related to the increase in mortgage banking loan production.The Company's efficiency ratio improved to 58 percent in the second quarter of fiscal 2013 from 74 percent in the second quarter of fiscal 2012. The improvement was the result of the increase in non-interest income, outpacing the increase in non-interest expense. The Company's provision for income taxes was $5.08 million for the second quarter of fiscal 2013, an increase of $3.72 million or 274 percent, from $1.36 million in the same quarter last year. The effective income tax rate for the quarter ended December 31, 2012 was 42.2 percent as compared to 42.3 percent in the same quarter last year. The Company believes that the tax provision recorded in the second quarter of fiscal 2013 reflects its current income tax obligations. The Company repurchased 93,580 shares of its common stock during the quarter ended December 31, 2012 at an average cost of $15.47 per share. As of December 31, 2012, a total of 387,238 shares, or 71 percent, of the shares authorized in the April 2012 stock repurchase plan have been purchased, leaving 160,534 shares available for future purchases. The Bank currently operates 15 retail/business banking offices in Riverside County and San Bernardino County (Inland Empire). Provident Bank Mortgage operates two wholesale loan production offices (Pleasanton and Rancho Cucamonga, California) and 16 retail loan production offices located in City of Industry, Escondido, Fairfield, Glendora, Hermosa Beach, Pleasanton, Rancho Cucamonga (2), Riverside (4), Roseville, San Diego, San Rafael and Stockton, California.