Question-and-Answer Session
Operator
Thank you. We will now take question from the telephone lines. (Operator Instructions). The first question is from Dave Rochester of FBR Capital Markets. Please go ahead.
Dave Rochester - FBR Capital Markets
Hey, good afternoon guys.
Rob Robinson
Good afternoon Dave.
Dave Rochester – FBR Capital Markets
Thanks for all the details. Some great detail there. Just real quick on the nonperforming assets, could you comment on the growth of the NPAs during the quarter. Was it weighted to the beginning or the end or was it kind of a gradual growth through the quarter?
Rob Robinson
Through the quarter, it was generally towards the end of February and March is when the growth occurred.
Dave Rochester – FBR Capital Markets
Okay. You had -- its kind of related to that my next question, you had indicated I guess previously at your annual exam might be some time at this time consistently with the timing last year in the June, July timeframe. Are you stepping up appraisal activity at all an anticipation of this, is that what caused the back-ended growth there?
Rob Robinson
We are stepping up appraisal activity but not in anticipation of the regulators. It is our opinion that these projects come up for renewal and we are assessing them and we need to know the values are on those projects moving forward. So I guess back to answer your of appraisal, we are stepping up activity on the appraisal side.
Dave Rochester - FBR Capital Markets
Okay. Do you have sense for what portion of the portfolio has been reappraised at this point there, the resi-construction portfolio end?
Rob Robinson
No, I don’t have that figure.
Dave Rochester - FBR Capital Markets
Okay. John, given your comments on the increase in sales, is it safe to assume? I'm just trying to get a sense for where the provision is going? if we do not see more meaningful acceleration in new home sales in the second and third quarters, would you expect given what you see in the portfolio right now that the provision and charge offs would likely trend higher from the first quarter levels?
John Dickson
Tough question. I would anticipate if inventories remain high, I would add to Rob's comments on the trend of non-accruals. Our builders and developers that made it through the winter, a lot of them have their liquidity and their cash reserves are down and what's going to help them is to see increased sales. If we don't see increased sales, then likely we'll see further credit deterioration and our provisioning will be made based on our analysis of the reserve and where that credit deterioration is. There is a lot of builders and developers that are [hurting] for cash flow right now. So I guess that's a long way to say, yeah, we need to see sales increase over the next several months.
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