Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Christopher Marinac - FIG Partners.
Christopher Marinac - FIG Partners
Just want to ask a question I guess about your feeling about commercial real estate and to what extent it follows other issues into trouble? Whether be for your or for others, I just kind of wanted an update on sort of how that feels to you both for Seacoast’s perspective as well with the market in general?
Dennis Hudson
Well, we’ve been saying for several quarters that we’re seeing weakness in the commercial real estate market in terms of vacancies and the like and that’s pretty probably broadly felt, it’ll most significant would be in some of the retail areas.
Having said that, while we see that weakness that is there and we’re very concerned about it, we don’t see it affecting at this point our portfolio in any significant way and if you think about it Chris, those exposures are very, very different than the exposures we’re dealing with on the residential side.
The common risk that is there on the residential side is the sale of residential product and most of our commercial real estate exposures are developed properties that are occupied and not depended on the sale of product and the like. So, I’m sure we’ll see some weakness as we go through time, but I don’t anticipate it being anywhere nearly as significant as the problems we’ve seen developing the residential side over the last year and it’s probably true for the whole industry.
Having said all of that as we said, several quarters ago we’ve restricted our lending in those areas due to very, very difficult marketing conditions and we’ve been under that restriction for a year or more. So, I guess that’s my comment.
Christopher Marinac - FIG Partners
That’s great and then just to follow-up on the statistics you gave in press release about the various property types or loans types, how much more change do you see these coming down? Obviously, there’s more to go, but I just want to get a gauge of how much through the sort of decline of these balances do you think we are?
Dennis Hudson
Now we’re speculating, because we’re not sure, what those liquidation efforts are going to look like over this coming quarter and the quarter, but we’ve moved significantly through it, that’s all I can tell and we’re probably halfway there. We’ve made remarkable progress in the last two quarters as you’ve heard and we have some more to go, but I would also tell you that we’re focused first on the biggest nastiest problems and as we move forward, they get smaller and less nasty.
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