Question-and-Answer Session
Operator
(Operator instructions) And we will take our first question from Rich Weiss of Janney. Please go ahead, sir.
Richard Weiss – Janney Montgomery Scott
Good morning.
Scott Smith
Good morning Rich.
Charlie Nugent
Good morning, Rich.
Richard Weiss – Janney Montgomery Scott
Hey, I was wondering if we can go right into asset quality. A couple of questions. First with construction lending, is – do you still see the trend of non-performance going up?
Scott Smith
Well, they did this quarter, Rich.
Richard Weiss – Janney Montgomery Scott
Right.
Scott Smith
You are asking about–
Richard Weiss – Janney Montgomery Scott
Yes, going forward, really –
Scott Smith
Well, as I mentioned in my comments, we don’t see economic conditions improving dramatically anytime soon, so, you know, we are trying to be prepared for additional issues there. We don’t have a number we are projecting what it’s going to be, but the longer this goes the more difficult it becomes to carry – for some folks to carry the interest cost of this. We are trying to work with them and there are times when we are looking at interest reserve and what we are looking for there is additional collateral. We have some that have put private equity, either their own or from additional investors they have been able to attract. And of course we are using the most recent appraisals we have to make any alterations in our lending commitment to those folks. But as far as the markets improving, presume in the next couple of quarters that’s difficult to project.
Richard Weiss – Janney Montgomery Scott
Okay. And would you – and I am just trying to figure were any of the construction loans charged-off in the third quarter?
Charlie Nugent
Yes, Rich, we mentioned that our charge-offs in the third quarter we had construction lending charge-offs of $4.6 million –
Richard Weiss – Janney Montgomery Scott
I think that’s grouped with the commercial, Charlie, in that table.
Charlie Nugent
I am not sure, Rich. Yes, yes they are. They are in that financial – commercial financial/agriculture. It’s in the commercial section. And, Rich, those $4.6 million we charged off in the third quarter, two of them were over $1 million. One was in New Jersey related to low income housing. And there was another one in Maryland, in the western part of Maryland, and that was $1.5 million, that was real estate development.
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