Question-and-Answer Session
Operator
(Operator instructions) And our first question will come from the line of John Hecht with JMP Securities. Please proceed.
John Hecht – JMP Securities
Good morning, guys. Thanks very much for taking my questions. Real quick question is the $800,000 gain, is that going to be taken next quarter in your P&L?
Paul Sinsheimer
Yes.
John Hecht – JMP Securities
Okay. Second is, you guys had a yield pickup during the quarter according to our model and I’m wondering is that, some of that related to the prepayment fees or is that the new book of business you’re putting on at sufficiently higher margins that is driving that up or is it a combination thereof?
Paul Sinsheimer
Is this John Hecht?
John Hecht – JMP Securities
Yes.
Paul Sinsheimer
Okay. John, I just wanted to make sure I got your name here. The answer is all of the above. As we state virtually every quarter, our yields are a moving target affected in part by prepayment premiums, the collection of late charges in addition to collections from litigation matters. It’s very, very difficult for us to pin point them. But all I can tell you is that the rates that are being charged on new business now are meaningfully higher than they were six months ago. Perhaps, the reason for that is just the reality adjustments to the forces that are currently in the marketplace as the cost of all borrowings appear to be going up, except those who borrow from the federal discount window. Those seem to be going down. It’s also probably a reflection of fewer competitors and in particular now that GE has at least gone to the sidelines, we don’t know whether it is extended or short term, but the short term effects have been a better pricing environment.
John Hecht – JMP Securities
Can you give us – I mean is this 50 basis points pick up, 25, can you give us any sense of that?
Paul Sinsheimer
It is just higher. At this point, I would be quite reticent to pinpoint it, but rates are moving higher.
John Hecht – JMP Securities
Okay. The other question I have is you did – you guys had continued to show very positive in relation to the economy credit performance. It wasn’t on a dollar basis, didn’t see much change and didn’t see much change this quarter in non accruals or repossessions on a dollar basis, are you seeing any change in terms of where that mix is coming from, give us a sense for what’s happening at the segment level that you lend to, or any trends you see in that matter?
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