Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Tony Montemurro – Howe Barnes Hoefer & Arnett.
Tony Montemurro – Howe Barnes Hoefer & Arnett
I just want to get an idea of as we look at this up and coming year we talk about the loan growth aspect of your business and given the economy down there, some of the influxes you have, can you kind of just give me a little bit of a taste of what type of loan growth you are anticipating? Are you pulling things back because of the credit? Can you give us some indication how that is going to be direct?
Ron W. Strother
As we indicated with the folks that are coming in to town, our customers are observing that. We don’t see a lot of growth in retail, we think our housing will hold up extremely well. 600 workers at the plant out in Little Rock so those sectors we expect to do well. We don’t expect double digit growth by any stretch but we are still in the lending business and intend to make every good loan that we can.
John W. Allison
I think it depends on when the press gets off all the bad news all the time. I think it scared some folks out there. Interestingly enough, with these rates down on the mortgage side we’re seeing lots of refinances and we’re beginning to see new purchases come in so that’s certainly a plus. We think that could be a plus. It could stand up pretty strong for the year. If they continue to keep rates down, I was visiting with one of our mortgage people the other day and she said she had 20 mortgages to lock in at 4.5%.
They are bottom fishing. We’re beginning to see that happen. The rest of the loan demand actually has been pretty soft here lately. Fourth quarter would have been up a tick if we hadn’t had the charge offs but it’s really been a little soft. I think people are just running a little scared Tony.
Operator
Our next question comes from Jon Arfstrom - RBC Capital Markets.
Jon Arfstrom - RBC Capital Markets
A few questions here, the first one, you have a lot of capital especially relative to your peers and I guess the question is how do you intend to use it especially with the TARP money coming in? Do you plan on sitting tight or looking at acquisitions or other uses?
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