Question-and-Answer Session
Operator
Ladies and gentlemen at this time we will begin the question and answer session. (Operator instructions) Our first question comes from David Rochester of FBR Capital Markets. Please go ahead.
David Rochester – Friedman, Billings, Ramsey Group, Inc.
Just real quick on inventory data, is there some kind of seasonality there with the drop off?
John J. Dickson
Well certainly we expect sales to drop off in the December, January time frame in the Puget Sound. The inventory drop off I can’t really comment on that being seasonal. We don’t know how many houses may have been on the market and pulled off but it was very encouraging for us to see those gross inventory levels come down. And, based on what we’ve seen from the supply side of things certainly the developers and builders that had not started projects held off on adding those projects. So there is always that lag factor there and I’m not sure how much of that has to do with the end of December inventory. Rob do you have any other?
Robert W. Robinson
No. The thing is we do believe that there is pent up demand right now in talking to some of our experts out in the field, I guess you could call them. The question is where are these people staying at this point in time as they migrate into our community for job growth?
John J. Dickson
I guess the other comment that we’re hearing just on the street is, in talking with title and escrow companies and realtors is just since year end they have seen a pickup in activity, more people coming back for a second or third time looking at houses. And so I guess the whisper on the street is that activity seems to be picking up here.
David Rochester – Friedman, Billings, Ramsey Group, Inc.
On the watch list you guys are giving a lot of great detail in terms of delinquencies and what not. I was wondering if you could quantify what that watch list is at the end of the quarter? And, maybe what the change was during the quarter?
Robert W. Robinson
Are you talking about the classified credits?
David Rochester - Friedman, Billings, Ramsey and Company
Yes. Exactly.
Robert W. Robinson
Okay well on our classified credits we had an increase for the quarter of $13 million. $6.9 million of those credits came out of our Oregon purchase. The rest of those credits, for the most part are real estate related and what else could I answer on that for you?
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