Question-and-Answer Session
Operator
Thank you. (Operator instructions) The first question is from Matt Schultheis with Boenning & Scattergood. Please go ahead with the question.
Matt Schultheis – Boenning & Scattergood
Good afternoon, gentlemen.
Robert Rout
Hi, Matt.
Matt Schultheis – Boenning & Scattergood
I know you went over the loans that you had to deal with. You had the $8.8 million condo. What was the first one you talked about? I kind of missed that.
Robert Rout
That was an apartment project, Matt, in Western Pennsylvania. The borrower invested in some other properties out of market which we did not finance, but there have been a severe drag on cash flow and took some money out of this project to put it into some of the other projects and there is some deferred maintenance that needs to be done. He does have a funding mechanism in place, but we just took a conservative approach if he can't execute on his plan, we are going to have to spend some money to get the apartments up to speed.
Matt Schultheis – Boenning & Scattergood
Okay. What was the dollar figure of that?
Robert Rout
15
Todd Brice
$15.4 million outstanding and $2.6 million specific reserve.
Matt Schultheis – Boenning & Scattergood
Okay. Aside from the one in New York, do you see any problems with anything else out of market?
Robert Rout
We have a couple of lot development projects in Florida that probably are just going to take some time to work through, obviously with that market down there. We feel we have some pretty good guarantors in place that have some pretty solid projects in Western Pennsylvania and we were just having discussions with them last week and they put a lot of their equity into it already and they're probably going to put the face with putting some more in and they have the wherewithal to do it.
Matt Schultheis – Boenning & Scattergood
Okay. Are they cross collateralized with their Western PA properties?
Robert Rout
Were in the process of some of that, Matt.
Matt Schultheis – Boenning & Scattergood
Okay. What is your total exposure to out of market?
Robert Rout
Tony Kallsen is with us, he is our Chief Credit Officer.
Tony Kallsen
We have about $318 million in out of state or what we consider out of state transactions. That represents about 18% of our commercial real estate portfolio.
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