Question-and-Answer Session
Operator
Yes sir. (Operator Instructions). And our first question comes from Scott Siefers of Sandler O'Neill.
Scott Siefers – Sandler O'Neill & Partners L.P.
Good morning guys.
Claude Davis
Good morning Scott.
Scott Siefers – Sandler O'Neill & Partners L.P.
I’m assuming maybe Frank, this part of the one is probably best for you. Can you detail the size of the OREO write down in the fourth quarter?
Franklin Hall
Sure Scott, that was approximately $400,000 pretax.
Scott Siefers – Sandler O'Neill & Partners L.P.
Okay. And then either Claude or Frank, just given the focus on tangible common these days. I was just hoping to get a little more color even beyond what you said on the way you’re thinking about tangible equity. Just since that the metric at which investors seemed to be paying the closest attention these days is good. And then Frank you gave the comment on TCE kind of extra leverage from the TARP, but having said that you are in a somewhat unique position of being able to leverage the TARP ones. The others don’t have that kind of favorable dynamic, and you can do so in several more times than you have so far to help avoid any earning solutions. Obviously the trade office that’s leveraging the TARP funds dilutes the TCE. So how do you guys think about that balance in this type of environment?
Claude Davis
Scott, this is Claude. You are definitely right. I mean I think we are sensitive to the market’s current view as tangible common being the most critical measure. So we’re factoring that into our thinking. Our Board has not established a target for tangible common. We have established, as we’ve disclosed previously targets for the other ratios, but we’re sensitive to kind of the market’s view that as you said we’re in a fortunate position that we can’t continue to leverage the TARP capital without kind of going below the 6%. And so which seems to be what the market is looking at as a kind of a threshold level. So, we are mindful of it. We are sensitive to it. Would expect to keep it above the 6% level, and then look for opportunities to leverage it appropriately.
Scott Siefers – Sandler O'Neill & Partners L.P.
Okay, perfect. And then I guess just had one other question on sort of general deposit pricing dynamics with the Nat City transaction having closed, I guess almost a month or so ago. Would you say there has been any relief or kind of return to normalcy or things still pretty competitive?
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