Question-and-Answer Session
Operator
Thank you. Ladies and gentlemen, at this time, we will begin the question-and-answer session. (Operator Instructions).
Our first question will be from Dave Rochester from FBR. Please go ahead. Your line is now open.
Dave Rochester - FBR
Good afternoon, guys.
John Dickson
Good afternoon Dave.
Dave Rochester - FBR
On the capital, I know in the release and just now you gave the capital levels of the holding company, I am not sure if you gave the bank level I may have missed that.
John Dickson
No, I didn't. At the bank level, we're at 10.43% on total risk-based capital at the end of the quarter. The difference between the holding company capital and the bank capital rest in the holding company; we have some investments that we are leveraging and we have some investments at the holding company that creates a part of that 30 plus million in capital at the property subsidiary, which holds all of our bank branches.
We have equity in those bank branches. Our strategy to push that capital down to the bank level is to have the bank loan money to the subsidiary in the holding company and that capital, when it will, in turn be pushed out as contributed capital at the bank level. So, when I focus on 11.22%, I expect some of that internal strategy will be able to have that bank capital level above 11%.
Dave Rochester - FBR
Okay. And that's something we should see in the third quarter?
John Dickson
We're hopeful to get it in the third quarter. Well, we've got appraisals on our bank branches in process at this time and we should have those in and that strategy completed by the end of the third quarter.
Dave Rochester - FBR
Okay. And I know you'd mentioned you are comfortable with capital today. Is there a level of NPA's, charge-offs or some kind of metric, say, for example, that we saw a doubling in NPAs from today's level, at which you would reconsider that and say, it might make sense to become more active in considering raising capital, given where things could go from here?
John Dickson
I don't think there is a strict level there, Dave. We're constantly monitoring our capital ratios and the adequacy of our loan loss reserve. I guess, I'd like to focus and point out that our net charge-offs in the quarter were only $6.5 million. That's on a loan loss reserve base of $81.6 million and that tangible capital base of $384 million.
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