Question-and-Answer Session
Operator
Thank you. We invite analyst to participate in the question-and-answer session. (Operator Instructions). Our first question comes from John Pancari of JPMorgan.
John Pancari - JPMorgan
Good morning.
Mack Whittle
Good morning.
John Pancari - JPMorgan
Can you talk little bit about your interest in selling additional non-performers in this market and are you seeing some opportunities still there to complete some sales and is that 30%, approximate 30% mark that you took on the sale here? This quarter representative of what you are seeing in the market right now for the interest in these loans?
Lynn Harton
Yes, John this is Lynn. We are continuing to use loan sales as a strategy, and reducing our non-performers. As you know, when you sell a non-performing loan, you are selling a claim on the asset versus selling the underlying asset of sales. So you do have higher discounts, when you sell a loan versus if you take it through the process, foreclose and actually sell the underlying property. As I mentioned in the opening comments, taking some risk off the table given the uncertainty, we think its right thing to do. And we are actively marketing several non-performing loans as we speak, and we are not doing them in a bulk sale basis. We do it them on a account-by-account basis. And we believe that the marks that we saw in the second quarter, we certainly don’t see the marks getting worse than that. And that we're seeing a little more interesting activity, but my expectation for loan sales in the third quarter would be consistent marks with what was on the second quarter, but not worse.
John Pancari - JPMorgan
Okay, that’s helpful. Then, my follow-up would be in terms of contingent, and I appreciate the detail you gave us here in terms of the credit metrics in the other portfolios, but can you give us a little bit more color, what you're seeing there on the ground or what areas are you most cautious of in terms of contingent in your commercial portfolio, particularly on the income producing commercial real estate properties, and then also in your C&I book?
Lynn Harton
Sure we'll be glad to. On the income producing properties, we're certainly concerned with a watchful eye towards our retail proprieties. That would be the first area to show weakness, we are not seeing that yet, but we're certainly watching and monitoring for that. I would say that the commercial income property piece of the business in total has been very well balanced. You don’t see the big over supply that you saw back in the early 90s great numbers of spec building. So, what we, we think that that's going to continue to hold that performance, continue to hold their home. We are seeing significantly less new construction, which we think is a good thing for that product.
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