Question-and-Answer Session
Operator
(Operator Instructions). Our first question comes from John Pancari at JPMorgan.
John Pancari - JPMorgan
Good morning.
Aubrey Patterson
Hi, John, glad to have you with us.
John Pancari - JPMorgan
Thanks for taking my call. Aubrey, can you give us more on the credit pressure this quarter? What did you see move on to non-performers and in terms of in which markets and by which types of loans and was it concentrated in the couple of large credits? Can you give us some more detail there?
Aubrey Patterson
Absolutely. I will call on Gregg Cowsert, our Chief Lending Officer, John to respond to those.
Gregg Cowsert
Yes, John, we continue to seek pressure in the residential, construction and acquisition and development area. That's primarily where our focus has been that's been the source of our increase in non-performers and our charge-offs. Our other portfolios, our consumer portfolio, commercial real estate portfolio, our leasing portfolio, and our credit card portfolios are holding up very well.
I will give you an example of the impact of three credits that we addressed in the third quarter in the residential construction and development area. Those charge-offs on the three credits totaled $6.4 million. So, without those three credits, our annualized net charge-off rate would have been 19 basis points. So an indication that, our problems continue to be located in our residential construction and development portfolio.
We anticipate that continuing going forward. We would anticipate our credit performance though to remain strong. And that our problems will be very manageable going forward.
John Pancari - JPMorgan
And in which markets were those, are you really seeing the pressure in the resi construction work and which markets were those exact three credits?
Gregg Cowsert
One was in the western market. One was in the Missouri market and one was in the Mississippi market. So, it was pretty well spread out.
John Pancari - JPMorgan
Okay. And what are the sizes of those non-performers?
Gregg Cowsert
The charge-offs or the non-performers?
John Pancari - JPMorgan
I know you gave us charge-offs total 6.4, how much is the remaining on non-performing related these two credits?
Gregg Cowsert
Okay. Hang on just a second.
Aubrey Patterson
While he is doing the math on that, John, that's a good question, because obviously we believe that those three credits and they are outliers from a granular portfolio more generally, but the values remaining in non-performance from those charge-offs, we believe are a good valuations.
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