Question-and-Answer Session
Operator
Thank you. [Operator Instructions]. We will go to Dave Rochester with FBR Capital Markets.
Dave Rochester
Hey guys. How are you?
John Dickson
I am fine Dave.
Dave Rochester
Just a couple of quick ones. Could you give us some color on the magnitude of the write-downs that you are taking on those three budgets within the construction category for land what end vertical construction?
Rob Robinson
Yeah, Dave. Well, I think I understand the question. The third quarter, 12.1 million related to residential construction and then the balance 2.6 million was primarily residential land development.
Dave Rochester
And what’s the severity percentage on that, are you adding those down, defer vertical construction, let’s say, 30%, 20% on average?
Rob Robinson
Well, it depends on the market. If you talk about single payment residences, the further south we go the more severe the write-downs for example in our Oregon market, we are looking in some cases as high as 20%, but most of them are coming in around 8 to 12% on average across the board.
John Dickson
Of original appraisal.
Rob Robinson
Of original appraisal. On the commercial side, we haven’t had any – I am not talking about condos, not actually. As far as the finished product go, we haven’t had any issues with the finished products that’s been in progress. And so it’s hard to say that whether there is a relationship to the write-down in the market. We have had to write them down in order to put ourselves in a position to either finish the product or sell as is. So in most cases, we have seen as high as 30%.
Dave Rochester
Okay. And so you are saying for finished products, you really haven’t had to keep write-downs in that product yet?
Rob Robinson
We have, but we will write them down as it’s based on original appraisal. It’s somewhere between 9 and 12% on average and in some markets it’s been as much as 20% of that original appraisal.
Dave Rochester
Okay, got you. Thank you.
Rob Robinson
I will say that the sales have bee manageable at this point in time.
John Dickson
I guess I would add, Dave that we are encouraging our borrowers to move product as much as possible. So we are encouraging them if there is a short sale to bring it to us we can take a look at it and move the product.
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