Question-and-Answer Session
Operator
All right. Thank you, sir. (Operator instructions) Our first question is from the line of Joe Morford with RBC Capital Markets. Please go ahead.
Joe Morford – RBC Capital Markets
Good afternoon, Li.
Li Yu
Hi, Joe.
Joe Morford – RBC Capital Markets
I guess couple of questions. First, it looks like you moved a fair bit into the OREO category and suggest there may be some continued inflows into the non-accrual loans. I was just wondering if you could give a little more color about what new deterioration you saw in the quarter in terms of a new problem loan inflows.
Li Yu
Well, actually that the net difference between the OREO and the NPL, the combined number between quarters is $1 million or $2 million differences. Okay?
Joe Morford – RBC Capital Markets
Oh, is it? Okay.
Li Yu
Yes, it’s only $1 million or $2 million there. Actually for the NPL portion, we show a more than $15 million improvement between quarters. Okay?
Joe Morford – RBC Capital Markets
Okay. I’m looking at the wrong number then, sorry.
Li Yu
And probably one of the situations that gives us some good feeling further is that the in the 30 to 89 days delinquent area, this is one area as a management that I look hopefully. And as of September 30, we’ll only have $11 million. This is even pretty good number at the glory [ph] days in 2007 or earlier. So the number just amazes me on that, but it is an improvement from last quarter and certainly a bit improvement from the first quarter, which is indicating situation as of September 30 seemed to be improving in my point of view. As I also stated in my press releases that moving to OREO is really a very welcome situation because we finally came dispose of it, as compared to let it sit there after waiting for the foreclosure processes or litigation process.
Joe Morford – RBC Capital Markets
Okay. And then I guess a separate question on the deposit side, can you just talk a little bit more about what went on this quarter in terms of kind of the restructuring, getting out of the government agency deposit? It looks like there were some outflows still in the core accounts, and just a little bit more about what will happen there?
Li Yu
Well, actually just – as you know, we have reduced our total dependence on the institution of government type of deposit, which is fully collateral supported, security supported deposits, by selling the security and reduce the government-related deposits. So, of the core deposits, our normal core customer deposit actually shows increases from the last quarter. Okay? This is partially done – is that actually because the State of California removed us from the program, the deposits, that we have to liquidate the deposit [ph] situation for about $90 million. The rest we are able to move into a different program and the belief of the collateral situation to improve our liquidity. The situation related to this is not – actually the liquidity situation has improved between quarters.
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