Question-and-Answer Session
At this time I would like to invite questions from analysts and investors. [Operator Instructions] Your first question comes from Brett Rabatin with FTN Midwest. Please proceed with your question.
Brett Rabatin - FTN Midwest Research
Good afternoon Russell and Chris.
Russell Goldsmith - Chairman of the Board and Chief Executive Officer
Brett how are you today.
Brett Rabatin - FTN Midwest Research
I’m doing well, thanks. How are you guys doing.
Russell Goldsmith - Chairman of the Board and Chief Executive Officer
Good. Thank you.
Brett Rabatin - FTN Midwest Research
Wanted to first ask on the provision this quarter of $20 million, can you help us with a breakdown there in terms of how much of that was an a reflection of allocation to the construction loans and how much might have been sort of an economic factor and just any general thoughts on provisioning, level in the fourth quarter?
Russell Goldsmith - Chairman of the Board and Chief Executive Officer
I think that we saw somewhat, you can see by their change in our NPAs somewhat of a meaningful change in non performing loans driven by the for-sale housing environment. I would say that’s a factor but we also had very substantial loan growth. More than we anticipated. We are pleased with it. There is really a variety of different factors. Our outlook on the economy from where we were at the end of the third quarter changed meaningfully. I mean it was? we weren’t totally positive then but it certainly became more negative. So there is a lot of factors in it but I think those were the key ones.
Brett Rabatin - FTN Midwest Research
Okay. And you indicated, I appreciate the conservative comments about the economy is soft and you are not sure if there will be a recession or slow growth this year. But you indicated you hadn’t seen yet any stresses in any other pieces of the portfolio aside from the for-sale housing. So note, none of the other portfolios have shown any increase in watch list or delinquent loans or what have you.
Russell Goldsmith - Chairman of the Board and Chief Executive Officer
Well, I would say there is no meaningful. There is always some migration as you grow your portfolio, but we aren’t seeing any patterns in any particular area. I do continue to comment that in the CNI category, over time you are going to have just some portion of your loans migrate into lower grades. It is just statistical. Our mortgage category, we don’t expect to see that and having it at all, but commercial real estate has been very strong out here in our markets. And that’s not an area that unless there is a really weak economy that you do expect to see migration. So I would say, we don’t see anything, but in general don’t forget that CNI usually statistically has some migration down.
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