Question-and-Answer Session
Operator
(Operator Instructions) Your first question is from Erika Penala Merrill Lynch.
Erika Penala Merrill Lynch
The $23 million in construction nonaccruals, how much of that is raw land or partially competed land versus fully completed projects?
George Jones
Basically it's either completed projects or it's development loans that have been developed waiting to be sold to builders. Or as in that $1 million new construction loan of $9 million, that's a number of finished houses and lots that I mentioned we foreclosed on in October.
Erika Penala Merrill Lynch
Can you give us a sense what the split is between fully completed and partially completed?
George Jones
The only one that really would be considered undeveloped land in that total relates to that $9 million loan we talked about in Austin, the shopping center site. That has not been developed, but they have all the entitlements to develop that property.
Erika Penala Merrill Lynch
Are you looking to dispose of this through a secondary market sale? If so, what's the demand like out there? For lack of a better term, what's the bidask spread?
George Jones
It's very interesting. It's almost project-by-project to tell you the truth. We would certainly look for these larger projects, if we could find a reasonable way to dispose of it in bulk, but again, we don't believe that we have large losses in any of these particular projects. For someone to come in and bid $0.50 on the dollar just to move it off our books, we just wouldn't do that. We don't believe that we have that kind of loss in these particular projects. Again, we're always open, we're always looking for a way to move it off our balance sheet, but bulk sales with big losses just to clean up the balance sheet really doesn't make sense today when we have the collateral value that I think we do.
Erika Penala Merrill Lynch
Moving on in the deposit side, we're hearing from other Texas banks that deposit competition remains quite fierce in your footprint. Do you suspect that you will have to hold your deposit offering steady in the fourth quarter despite the rate cuts?
Peter Bartholow
Certain categories of deposits, you can't lower price on. We understand that. The competition for deposits, I don't think, unless you're talking about retail with consumer deposits being pushed aggressively, pricing pushed aggressively, to justify the existence of overbranched networks, in many cases involving banks that have serious problems. That is at the retail level clearly driving high rates. That is not a rate that really has much, if any, bearing on rates that we pay.
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