Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from the line of Brett Rabatin.
Brett Rabatin
Good morning, Ray. How are you?
Raymond Davis
Hi, good, Brett.
Brett Rabatin
Nice to see the NPAs down, I was wondering if you could go through -- you did in the press release go through what the inflows and outflows were to the all the real estate owned, and so I was curious if you could do the same for the NPAs and discuss the 13.5 million of net charge-offs, if you could walk through the major pieces of that?
Raymond Davis
Sure, Brett. I’ll let Mark Wardlow, our Senior Credit Officer give you a quick update.
Mark Wardlow
Yes, this is Mark. Of the $13.3 million, that was really centered in three or four relationships, and the rest of it was very small charge-offs. And they were previously loans that we’ve identified as problems in the third and fourth quarter of last year.
Brett Rabatin
Okay. So the charge-offs were mostly three or four relationships?
Mark Wardlow
Yes.
Brett Rabatin
Were they all construction or whether any of them C&I or?
Mark Wardlow
No. There was no C&I. The vast majority of those were related to our residential development portfolio.
Brett Rabatin
Okay. And then any color on inflows or outflows that you might have had, and then non-accrual bucket just for payoffs or new loans that came in relative to what you charged off?
Raymond Davis
Brett, this is Ray. You know, there really wasn’t anything significant that went in and out that really impacted it. It was a stream of mostly smaller loans that either re-entered or I shouldn’t say re-entered, entered the non-performing status or exited, either sold, resolved or moved into OREO. What is interesting now is one fact that I can’t pass on to is that our overall classified dropped 15%. So this was a very good quarter for us on the way that our management, our credit teams managed the overall troubled assets that we are looking through.
Brett Rabatin
And you mentioned classifieds were down 13%, do you have a number for that?
Raymond Davis
I don’t have the number off the top of my head, but we haven’t. But it was a significant decrease.
Brett Rabatin
Okay. Maybe I can follow up after the call for that. And right now I mean looking at your credit numbers and with the NPAs down a little bit, I mean, if we can get some visibility that you are through your worst of it, I mean, what I guess I’m looking for is any additional clarity you can give with what the 13.3 million of specific reserves, you know, what those what that reserve is allocated to specifically, and then just you mentioned the C&I delinquencies were low. I was just trying to get a better picture of what you might have on the problem asset list is not on non-accrual?
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