Question-and-Answer Session
Operator
(Operator Instruction) Your first question comes from the line of Scott Siefers with Sandler O'Neill.
Scott Siefers - Sandler O'Neill
Good morning, guys.
Bob Jones
Hi Scott, how you doing?
Scott Siefers - Sandler O'Neill
Good, how is everyone over there doing?
Bob Jones
Good.
Scott Siefers - Sandler O'Neill
Good. I just had a couple of questions just on credit. First, the loans sales in this quarter, were those all non-performing loans?
Daryl Moore
Yes. They were.
Scott Siefers - Sandler O'Neill
Okay. And how are you finding the market for secondary loan sales just given all the dislocation that we saw during second quarter?
Daryl Moore
Yeah, Scott, it's interesting what we have found, as we continue to talk to our loan sale advisors, is that everything exclusive of one-to four-family residential loans there still appears to be a fairly vibrant market for them, pricing maybe up slightly, but not materially. If you've got residential one-to four-family development acquisition, development projects, they are trading probably at about $0.50 on a $1. So, many banks are not even putting those in the loan sales. But, that seems to be today, the only segment that's been hit very hard.
Scott Siefers - Sandler O'Neill
Okay, excellent. And then let's see am I [tossed] back on; I think that should do it for now. Good. Thanks, everyone.
Bob Jones
Thanks Scott
Operator
Your next question comes from the line of Erika Penala with Merrill Lynch.
Bob Jones
Hey Erika, how are you?
Erika Penala - Merrill Lynch
I am doing well. How are you?
Bob Jones
We are doing great.
Erika Penala - Merrill Lynch
Daryl, I just wanted to tick your brain about how we should think about reserves going forward. I know that the formula didn't cause you to report the provision this quarter. But, it seems like the tone is appropriately cautious going forward. So, how should we think about reserves?
Bob Jones
Yeah, Erika, if you don't mind I might chime in and then let Daryl fill in the blanks. But, I think that's in part why we want to hold off till January to give guidance for 2008. And I want to assure everybody on the phone, we don't see any dark clouds. And again, as I think, you all know we've been conservative, but I think we're been appropriately cautious. We also would be naïve to think that we won't return to some normalization of credit cost as we begin to think about 2008. Daryl, do have anything to add? Hope that answers the question.
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