Question-and-Answer Session
Operator
Thank you. (Operator Instructions). We will pause just one moment to assemble our roster. We'll go first to Matthew Schultheis with Ferris Baker Watts. Go ahead. Please.
Matthew Schultheis - Ferris Baker Watts
Thank you gentlemen, I've got a few questions but they are all brief. Could you discuss the lease volume during the fourth quarter?
William J. Reuter
Sure, Matt. Lease volume in the fourth quarter was $57 million, which gave them a total lease volume of $256 million for the year and we're anticipating about that same level for 2008.
Matthew Schultheis - Ferris Baker Watts
Okay, can you discuss what impact marking Community's balance sheet to market had on your margin?
William J. Reuter
About 2 basis points.
Matthew Schultheis - Ferris Baker Watts
Okay, as far as the -- and I'm not an accountant so [no] education here, but: there is one SOP ?03-3 or something like that?
William J. Reuter
SOP, yeah.
Matthew Schultheis - Ferris Baker Watts
Yup and you are due to the mark-to-market of the loans and all of the wonderful things dealing with non-performing loans, when you did that, you did not apply the Susquehanna allowance calculation methodology prior to marking these to market to bring along to your balance sheet: is that correct? Or: is that, not correct? I mean: that's the way you would have to take the $11.1 million provision for this quarter, correct? Am I off face there?
Drew K. Hostetter
The difference Matt, in the -- how we calculated the loan loss reserve, which create $11.1 million, there are two methods to calculate loan loss reserve, FAS 114s are specific reserve methods and FAS 5 is a pool method and in the FAS 5 calculation, you use such things as migration analysis and loss history and just your overall expectations of the economy and everything.
Matthew Schultheis - Ferris Baker Watts
Right.
Drew K. Hostetter
In our calculation, we do specific reserve 114 calculation on non-accruals. Everything else has a FAS 5 calculation. In Community' case, they do everything risk graded 6 and above of the specific 114 calculation and everything else is a full calculation.
Matthew Schultheis - Ferris Baker Watts
Okay.
Drew K. Hostetter
Okay, so they had a $110 million worth of 6 and 7 rated credits that were collateral good and had zero reserve. Okay.
Matthew Schultheis - Ferris Baker Watts
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