We expect the debate will renew, will there be further rate increases, will rates be higher for longer, And when will the first rate cuts occur? So again, altogether, even though this rising rate cycle has may yet have Pete, the answers to the questions noted will linger, but for us, the rate of changes are slowing. Now Turning to non interest income, which declined $400,000 or 4.8 percent sequentially from the 1st quarter, largely because of lower gains from sales of the guaranteed portion of SBA loans, the volume of loan sales declined 33% to $19,900,000 for the 2nd quarter, while the trade premium declined 10 basis points to 7.75 non interest income for the 2nd quarter also included a $1,900,000 benefit from a legal settlement, offset by $1,900,000 of losses realized on the sale of securities. Non interest expenses were up 4.5% sequentially from the 1st quarter to $34,300,000 Here, the $1,500,000 increase was largely due to a $700,000 increase in our FDIC insurance, while the Q1 included $600,000 of recoveries from an SBA servicing asset valuation allowance and from recoveries of OREO expenses. These items overshadow the stability of our labor costs, which declined $245,000 And represent 59% of our operating expense base.
