Question-and-Answer Session
Operator
(Operator instructions) Our first question comes from Barry McCarver from Stephens Inc. Please go ahead.
Barry McCarver – Stephens, Inc.
Hey, good morning guys.
Dennis Hudson
Good morning, Barry.
Barry McCarver – Stephens, Inc.
I guess first off, Denny, looking at the loans in the pipeline there, are we still just seeing very, very light loan demand in your market? Has there been any change over the quarter in that respect?
Dennis Hudson
Well there is no demand for residential real estate development, I can tell you that. You know, Russ, do you want to make a brief comment about that?
Russ Holland
On the commercial side, yes, you are right the loan demand is significantly off as you would expect. There is some moderate consumer and residential demand but the commercial loan demand is down.
Dennis Hudson
Right. And we are projecting at this point I think we are holding by maybe a comment we made last quarter that we are going to see loan growth. I think we said, Bill, in the sort of negative 5% area maybe – 6% something like that over the next year or through the balance of '08.
Barry McCarver – Stephens, Inc.
Okay. And then I guess second question revolves around the loan loss provision. Certainly applaud the higher reserve ratio. Kind of given your comments on the outlook for some of the asset quality metrics in the rest of the year, should we expect to see that reserve ratio continue to move up slightly or are you comfortable where it’s at?
Dennis Hudson
Well probably not going to move down. It may move up slightly. I think the big wild card for us and the industry is where valuations are going and how changes in valuations could affect carrying values for problem assets, that sort of thing. That is what we are probably going to struggle with as we move through the rest of the year.
As I said though, we have a pretty good understanding of where we are and we will just continue to track that very, very closely and our – the good news is it’s a fairly simple equation.
Barry McCarver – Stephens, Inc.
And then just lastly, if I may, trust revenue off again in 1Q. How much of that is seasonal? And it seems like it has been down for I guess a couple, two or three quarters in a row. What’s going on in that division?
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