Question-and-Answer Session
Operator
(Operator instructions) Our first question is coming from Scott Siefers from Sandler O'Neill.
Scott Siefers – Sandler O'Neill
Good afternoon, guys. Let's see, Bill, I guess this question is probably best for you. When you were talking about NPAs being down due in part to an emphasis on asset disposition, I guess maybe a little more specifics on exactly how you are disposing of assets, whether it be secondary market, what have you. I guess I would just be curious to hear how – kind of how the workout team is behaving, how you are getting through some of your stress borrowers.
Bill Richgels
Thank you, Scott. I think it might be helpful to think of a philosophy, Scott, where we are not purists in terms of calling market bottoms, market highs. We are in the business of moving appraising assets in that sector and then taking specific action, and you might think of it as part of an inventory. We try and create a constant and if you will that constant for our portfolio now runs at approximately $30 million and we are constantly looking at with a philosophy of know what the value of that asset is. These of course are for assets that we consider no longer relationships that they have the potential to be impaired and such, and what we do is we get very realistic re-appraisals.
We take action and we either re-collateralize in an effort for rehabilitation or, yes, we bring in secondary market people for indicative values or more directly, since that market is not as fulsome as one would desire, we move and market it internally within our region to long-term investors who still have liquidity. We have been very successful at that, not calling again a market value, but long-term investors may have a different perspective than we do, and we are realistic about the value that we'll accept. We have a constant movement, if you will, and I'll reference something and think of it as an inventory where we have to move one fourth of that inventory every quarter and that allows us to remain fairly consistent in NPAs. So we will sell because we have appraisals and have an idea of the present value of that asset. And again in my remarks, I referenced the fact that a strong balance sheet allows you this option to move on assets and we are very aggressive about doing that.
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