Question-and-Answer Session
Operator
We invite analysts to participate in the question-and-answer session. (Operator Instructions) Your first question comes from Kevin Fitzsimmons – Sandler O’Neill & Partners L.P.
Kevin Fitzsimmons – Sandler O’Neill & Partners L.P.
I was wondering if first, you guys did bring up the TARP program and that looks attractive on the surface and you’re evaluating it but can you give us a little color on what your understanding is of your eligibility? I know everyone has to apply for it and then get approved but I would imagine at some point you’ve had discussions with the regulators and are slowly but steadily getting a feel for who’s in and who’s out. And I’ve heard rumblings that it’s based on CAMEL ratings and I just would, I think we would, it would be helpful to get some understanding on what your thinking is, what you’ve learned so far on eligibility. That’s number one.
And then number two, if you can go into, we saw the link quarter flows in deposits and how retail deposits really increased from prior quarter but more transaction based deposits declined and I’d be interested in what you saw happen post quarter end so far here in October.
James R. Gordon
I’ll take the capital question and let Chris Holmes address your question on the deposits floats. On the TARP program we have been in constant dialogue with the regulators over the last week or so after it was announced. In discussing, I think right now there is less known than more known about how they’re going to do the selection process but at this point we see no reason that we would not apply and that it wouldn’t be considered.
What we have heard in our overall discussions is that there’s not necessarily going to be a hard set of rules but more guidelines that they will look to in evaluating each bank on its own merit to qualify and receive the capital. And at this point we feel still it’s prudent to proceed with that process based on those discussions.
And again everything that we have heard is positive and we’ve heard nothing that would be to the contrary that we shouldn’t proceed with the application process from the regulators or anyone else at this point.
Kevin Fitzsimmons – Sandler O’Neill & Partners L.P.
James, is that something where assuming you were to get the capital, is that something where you’d envision just boosting those capital ratios and holding it as the cycle plays out or is it something that would lend itself to allow you to get more aggressive, to do more front loaded actions like you’re doing in this quarter?
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