Question-and-Answer Session
Operator
(Operator Instructions)Your first question comes from Brett Rabatin – Midwest Securities Corp.
Brett Rabatin – Midwest Securities Corp.
Can you walk through how much of the residential portfolio remains in land and the residential overall? Can you just walk us through this numbers?
Mark Wardlow
The breakdown is 30% land, 36% acquisition and development, 19% single-family construction, and approximately 15% in condos.
Brett Rabatin – Midwest Securities Corp.
I didn’t know if you might have available the actual dollar amount you asked for tier one capital, total risk base capital, and total risk based assets?
Mark Wardlow
Brett, these are estimates as were finalized in the regulatory board for the close. Tier one capital, $711.4 million, total risk based capital, $786.2 million, and risk weighted assets of $7.1 billion.
Brett Rabatin – Midwest Securities Corp.
As it relates to the risk weighted assets, I know you got about a billion of unused commitments and so that is about half a billion to your total risk based assets. I am curious if, I know you are going to have control growth in the next few quarters but I am assuming one way you can control the risk based assets number is having a slightly lower commitment level outstanding in the next couple of quarters.
Mark Wardlow
Actually, Brett, there’s quite a few ways we can reduce the risk weighted assets position of the bank. One of them is with unused commitments greater within the year. Another is with restructuring of the bond portfolio from 20% risk graded down to zero. No. Maybe with the penny [Inaudible] change I might have to force over the coming quarter.
Brett Rabatin – Midwest Securities Corp.
So, no thoughts on whether you might be doing that or any securities portfolio redeployment, so to speak.
Mark Wardlow
Brett, those are reviewed on a regular basis and we continue to review those and if we see the need for restructuring, we will do that.
Brett Rabatin – Midwest Securities Corp.
Ray you indicated, I think early in the comments that you said it was premature to say Sacramento has recovered. Was that the phrase you used?
Raymond P. Davis
Yes. It was, Brett.
Brett Rabatin – Midwest Securities Corp.
I am curious and I think that it is great that you were aggressive in the charge-offs this quarter but I am curious as what would be really positive for the shareholders just to have some additional clarity on why you think there will not be any additional write downs and the non-accruals that you have and so I am curious if you can walk us through and particular as it relates to the California portfolio and your process of writing those NPAs down. What the net values are today in relation to whether it be a appraisals or current market bids in the area or some additional color on why the NPA list is at the quote?
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