Question-and-Answer Session
Operator
(Operator instructions) Our first question comes from Mark Fitzgibbon of Sandler O'Neill. Please go ahead.
Mark Fitzgibbon – Sandler O’Neill
Hey, guys. How are you?
Paul Pantozzi
Good morning.
Linda Niro
Good. How are you doing?
Mark Fitzgibbon – Sandler O’Neill
First question I had, I wondered if you could talk a little bit about your deposit strategy and how – whether you plan over time to fund more the long growth with deposits or with borrowings or be opportunistic and if the plan is to do it with deposits, maybe just share with us how that comes about, whether it's de novo branching or new marketing strategies or what have you?
Linda Niro
I think, Mark, it's a combination of both on the deposit side, that's our preferred method of funding loan growth to expand our deposit base and our market share. Again, we've talked repeatedly about our strategic business plan to expand core account relationships, not only on the retail side, but on the commercial and small business side by offering new products, by enhancing our Web site and internet banking capabilities. While de novo branching will be in the mix, where it makes sense, from a geographic location and market share, primarily it's going to be through expanding relationships with our customers and improving our core deposit mix.
Paul Pantozzi
Mark, this is Paul. We have several locations – de novo locations in the pipeline, they're not going to be coming online until much later this year and really into the first and second quarters of '09, but again, very selective locations hopefully to assist in the process.
Mark Fitzgibbon – Sandler O’Neill
Okay. And then the second question, could you break out for us, Linda, the prepayment penalty income in the first and second quarters? Do you know how much that was?
Linda Niro
Prepayment penalty on loans?
Mark Fitzgibbon – Sandler O’Neill
Well, you said prepayment penalty income in the press release was down, you attributed the lower non-interest income level partially to lower prepayment penalty.
Linda Niro
That was the equity fee income.
Mark Fitzgibbon – Sandler O’Neill
Got you.
Linda Niro
Yeah, reduction in the value of the equity fund.
Mark Fitzgibbon – Sandler O’Neill
Okay. And then on that $16 million credit that you have that you secured at the end of the – or after the end of the quarter, could you give us maybe a little more detail on that? Is – how much equity the principals have in it and that sort of thing?
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