Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from [Tom Dulhaney - Decade Capital].
[Tom Dulhaney - Decade Capital]
I was wondering if you could provide an update on potential problem loans. I think there was something like $275 million in the last 10Q. I would assume a lot of that moved into NPA this quarter. Could you provide an update there?
Michael J. Thorell
As I mentioned in my comments, we’ve been just very aggressively addressing the problems. They’re evident by the movement of those loans. The market continues to be very challenging as we’re working with customers. There’s really no surprise in some of it because of the nature of what we’re hearing out of both markets. We’re continuing to drill down on all areas of the portfolio but obviously the residential side is one that is getting most of our attention and thus those aggressive strategies have resulted in the numbers you see.
[Tom Dulhaney - Decade Capital]
But in terms of that actual figure, the potential problem I guess we’ll have to wait for the 10Q for that?
Michael J. Thorell
Yes.
[Tom Dulhaney - Decade Capital]
Can you comment on your ability to accept and retain brokered deposits after falling below well capitalized in the second quarter?
Michael J. Threet
We currently have a broker deposit waiver application submitted to the regulators, to the FDIC, and we’re trying to get that moved through the system right now.
[Tom Dulhaney - Decade Capital]
If that waiver was approved, does it allow you to retain your existing broker deposits or accept additional? I’m not sure how that works exactly.
Michael J. Threet
It would be to accept additional deposits.
[Tom Dulhaney - Decade Capital]
I can see you provided updates on your maximum capacity to purchase fed funds under agreements with other banks. Is there any update on that?
Michael J. Threet
We’ve had some fall off. Some of the correspondent banks have pulled their unsecured borrowing commitments from us.
[Tom Dulhaney - Decade Capital]
As far as the capital status, what is the status of the actual rights offering at this point? Is that being shelved or I know you said you’re working with your advisors, but just on that piece alone?
Michael J. Threet
At this point in time we’re still working with KBW on all those options, so none of those at this time have been shelved.
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