The following is a reconciliation of the statutory federal and state tax rates to our projected annual effective rate at June 30, 2013 and 2012.

Reconciliation of Statutory Tax Rate to Effective Tax Rate


	June 30,
	2013		2012
Federal statutory rate		34.0 %		34.0 %
State statutory rate, net of Federal tax effect		7.2 %		7.2 %
Differences in taxable (loss) income from GAAP income		(20.5) %		(17.4) %
Dividends paid deduction		(10.7) %		(22.6) %

Effective Tax Rate		10.0 %		1.2 %