Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Sam Caldwell - KBW.
Samuel Caldwell - Keefe, Bruyette & Woods
I wanted to ask a question about Fannie Mae and Freddie Mac preferred stock. I know in your, I believe it was in your K, you hinted at the fact that you had some of this on your balance sheet, but I just wanted to know if you could detail what your exposure to Fannie Mae and Freddie Mac preferred stock was.
D. Ben Berry
In fact, Sam, the amount is actually in our first quarter Q but we have $40 million, $20 million of Fannie and $20 million of Freddie.
Samuel Caldwell - Keefe, Bruyette & Woods
Have you marked that down at all?
D. Ben Berry
At June 30 the market value of that was approximately $38.5 million, and yes it was marked at $38.5 million at June 30th.
Operator
Your next question comes from Christopher Marinac - FIG Partners.
Christopher Marinac - FIG Partners, LLC
Ben and Ted, I was curious if you could just give a little more color about from a standpoint of your construction borrowers and just the general folks that you work with within your footprint, how healthy do you think they are today versus 3 or 6 months ago. Do you see any signs that their business is a little softer than it would have been? Just curious of any additional color beyond the numbers you just went through.
D. Ben Berry
Chris, I would say that we feel like our markets have, the Outer Banks is probably the softest market we have, but we see in that market, let me address the markets, and I may be deviating from your specific question, but restaurant receipts are up, rentals are up, all of the non-real estate things are doing well in that particular market. Values have declined a little bit but what we see is the construction area and those markets has continued to do okay because those loans are repaid from cash flow. They have proper equity in them.
Cash flow numbers, liquidity, and they’ve been the type of borrowers that we have always sold. From the construction loan thing, specifically throughout the system we have actually, I don’t know if we put it in the release or we do have some of the specific numbers, we’ve seen actually more issues in the [inaudible] portfolio than we have in the construction loan portfolio, but we’ve underwritten our construction loan borrowers on a global cash flow basis.
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