Question-and-Answer Session
Operator
(Operator Instructions) Our first question is from Kevin Fitzsimmons with Sandler O’Neil.
Kevin Fitzsimmons - Sandler O’Neil
I was wondering if you could give a little more color just in terms of the credit deterioration you did see, specifically the non-performers. By loan type we’ve been hearing a lot about residential construction related credits and some consumer related and then by geography. Is there any, over concentration, not over concentration, but how would you characterize it? Then I have quick follow up after that.
Aubrey Patterson
Gregg Cowsert our chief lending officer can certainly respond to that, both with respect to the segmentation of both dimensions that you described.
Gregg Cowsert
Let me give you an idea of what we added to other real estate and non-accrual loans in the first quarter by category and I’ll give you a flavor for that. In the first quarter we added to other real estate and residential real estate. 15% of our editions were in residential real estate, 7% was in commercial real estate, 48% was in acquisition and development and construction and 30% was land. In the non-accrual area, of the additions to non-accruals in the first quarter 25% was represented by residential real estate, 9.7% was represented by construction, 39% was C&I, 8.5% was land and 175 was ag/land related credits. I might also mention that, in looking at our non-performing assets, or non-performing loans, which came in at 0.42% in the first quarter, looking back over a six year period, our average non-performing loans as a percent of net loans was 0.49%. Our credit losses, well let me say that we’re seeing basically continued weakness in the residential real estate market, it’s not confined to any one place, obviously some markets are feeling the crunch a little worse than others that might have a more vibrant local economy, but it’s pretty much across the board. I hope that gives you a flavor for our additions of non-performers.
Aubrey Patterson
On Greg’s closing comment there, you can take that, I think, as the appropriate response to the question you asked about geographic concentration, there really isn’t any. You had a follow up Kevin?
Kevin Fitzsimmons - Sandler O’Neil
Just quickly Aubrey, there is a lot of people been talking about M&A opportunities at some point. How do you look at that? Do you look at it as an opportunity, do you feel it’s too early and it’d be difficult to really assess the credit difficulties within a potential target and when do you think some of those might play out? Thank you.
- To read the full transcript on Seeking Alpha, click here »
