Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Steven Alexopoulos - J.P. Morgan Securities, Inc.
Steven Alexopoulos - J.P. Morgan Securities, Inc.
On your comment you just made related to participating in TARP for capital, when you think about this, do you see this as potentially replacing some of the need you might have for common equity to support growth or do you think this will be in addition to the need for common?
Larry D. Richman
As part of our strategic growth plan, we are going to continue to grow. If the availability and we hope the availability under the TARP program will at least allow us a substantial amount of capital to support our initial growth or the growth going forward, we expect as we have calculated it could give us maybe up to $250 million to $255 million of proceeds. If that takes place at 3% of risk weighted assets, that will give us the substantial amount of capital to continue to grow.
Steven Alexopoulos - J.P. Morgan Securities, Inc.
Can you talk for a minute about the market demand for loans? Any signs of slowing just given what’s going on in the economy?
Larry D. Richman
It’s very interesting. We are continuing to see a very strong pipeline. We’re also continuing to see a tremendous amount of deal flow yet we are very, very selective and I’ll call it cautious. We are continuing to evaluate a number of new alternatives. The deal flow continues to be strong but at the same time our selectivity is probably giving us a chance. We’re probably even turning down more loans now than I think we would have, at least I would have addressed, at the last call.
Steven Alexopoulos - J.P. Morgan Securities, Inc.
It looks like ex the reserve build you would have been profitable this quarter. What’s your best guess at what point we get to break even?
Dennis L. Klaeser
You’re right. I think it’s pretty clear that if it wasn’t for the reserve build we’d have been at a break-even or modestly profitable level. The level of reserve build going forward, there’s I would say more likely than not to be continued reserve build. The amount is hard to predict at this stage but clearly I think we’re showing continued strong revenue growth and given the strong balance sheet growth again that we had this quarter I think we should expect good revenue growth in the fourth quarter as well.
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