Question-and-Answer Session
Operator
(Operator Instructions) Our first question is from Mr. Dave Rochester from Friedman, Billings Ramsey. Please state your question.
Dave Rochester - Friedman, Billings, Ramsey
Hi, good morning, guys.
James Giancola
Hi, good morning.
Dave Rochester - Friedman, Billings, Ramsey
It looks like NPAs were stable and your 30 to 90 day the loan delinquencies and charge-offs had improved, so in light of that, can you just give us some additional color on the loan downgrades in the portfolio that prompted you to take the larger provision? And could you perhaps, quantify how large the watch-list is at this point? I know it’s down 10%, but could you put a dollar figure to that?
James Giancola
Let me start at the beginning. We have a formula that takes into account loan growth, so there's a provision for that. We regularly update watch list credits for the quality appraisal-wise for how solid our collateral is. We've provided additionally for that.
Then there's a big economic component that we use in calculating our reserves and our valuation or our assessment of the economy is that it is weaker now than it was last quarter. And we thought it prudent to put additional dollars into the reserve because the economy is weaker.
Dan Kadolph
Internally classified is approximately a 101,000.
James Giancola
We have $100 million, this quarter we have $101 million in a broad definition of classified credit, that's down from about $110 million of last quarter.
Dave Rochester - Friedman, Billings, Ramsey
Okay, great. So most of that provision, aside from loan growth, went to, I guess, the general or unallocated, nothing specifically in the portfolio?
James Giancola
Nothing significant, specifically?
Dave Rochester - Friedman, Billings, Ramsey
Okay. Could you also give us a little detail on what is in that 30 day and 90 day bucket right now?
James Giancola
It's a cross-section of things and I am somewhat embarrassed to report part of it is, just loan officers getting documents in.
Dave Rochester - Friedman, Billings, Ramsey
Okay.
James Giancola
And so, the early delinquencies are not a tremendously large concern to anyone, but our Chief Credit Officer who stays awake at night worrying about it. When it gets to 60 to 90, we worry about it. We are very active on that and that's where I think the majority of the reduction came from.
Dave Rochester - Friedman, Billings, Ramsey
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