Question-and-Answer Session
Operator
(Operator Instructions). And we go first to Kevin Fitzsimmons with Sandler O'Neill
Kevin Fitzsimmons - Sandler O’Neill
Hi. Good afternoon everyone.
John Hope
Hi. Kevin
Kevin Fitzsimmons - Sandler O’Neill
John, a couple of questions. First, I didn’t get all the numbers, I apologize for this when you were going through the energy exposure, so if it's possible, can repeat some of the numbers on the oil and gas and the exploration production, you don’t mind? Then, can you take a step back and talk about more indirect exposure to energy and other areas? That’s more direct but that whole region of the country the Gulf Coast and now in Texas, what kind of things are you looking at in terms of the regions, and are you seeing any weakening due to what’s happening in energy? Thanks.
John Hope
Sure I am going to ask Joe Exnicios, our Risk Officer to address the answer.
Joe Exnicios
Kevin what we said was that loans outstanding to the oil and gas industry represent approximately 11% of our total outstanding loans that was up from 10% a year earlier. What we also said was about 31% of the loans are related to the exploration and production lending with the balance really spread out between transportation, supplies and other services. We also said that our exploration and production portfolio is approximately 60% gas and 40% oil.
Kevin Fitzsimmons - Sandler O’Neill
Great, thank you. Can address the broader question of indirect exposure to energy?
John Hope
I think that if I can even add to that a little bit, Kevin. Briefly, I will ask Joe to comment about overall what we are seeing in terms of any developing credit issues and overall what we have assessed our credit situation to be within the energy sector.
Joe Exnicios
Kevin, our energy portfolio is performing very well. Now, we are well aware of the changes in commodity prices, we follow that very carefully. But that portion of our portfolio is performing well as we speak.
Kevin Fitzsimmons - Sandler O’Neill
But, are you beginning to see small businesses or businesses that you wouldn’t think of as directly related to energy just in that area that are beginning to feel any affects of that?
Joe Exnicios
No Kevin, I can’t say that we have.
Kevin Fitzsimmons - Sandler O’Neill
Okay. Okay, just, do one quick follow-up John. Could you, with your capital level, with what’s going on in the industry, and if we have some kind of rationalization here, can you talk about, assuming you were brought some kind of situation or some in terms of being able to consolidate another entity, what would appeal to you? What would you really be staying away from these days?
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