Question-and-Answer Session
Operator
(Operator instructions) The first question comes from Matthew Clark from KBW. Please go ahead with your question.
Matthew Clark – KBW
Sure, thanks. Good morning, guys. Can you first just touch on the incremental increase in non-performers – I guess may be in the NPL bucket relative to what you guys had in the 30-90 plus bucket at year end. It seems like the pull through there was fairly limited. I am just curious as to what might be going on in that delinquency bucket. Are things kind of remaining in there, have you seen some turnover, when things were nearly in or being put back on accruals, just curious about the ins and outs.
Alan Eskow
Nothing first of all has been put back on accrual, I don't think so. That is not really an issue at all. I think our delinquencies remain at levels that they are and we are not seeing any major increase moving through to the non-accrual level. We saw our fuel loans come through. As you saw, we went up $14 million during the quarter.
Gerald Lipkin
We also see some go out. They are not stagnant, sitting in there, we have a lot of them that pay off.
Matthew Clark – KBW
Yes, that was my question, okay. And then another question along the lines of the commercial real estate bucket and just reserving methodology. Obviously, delinquencies there remain very low and manageable and you guys have obviously stress tested the book. But just curious, the reserves there were down one basis point, year over year they were down it more than that, I will say 10 basis points. Obviously concerns about rising vacancies in the New York/New Jersey area are a growing concern. Just curious about the reserving methodology there and why that might not – and whether or not that might start to turn back up.
Alan Eskow
Yes, Matt, the reason it really went down is because we had been originating some loans in new territories, Brooklyn and Queens, and we had made sure we reserved additional amounts for that; as those loans begin to mature and they have matured by probably about two years now and we are very comfortable with what we're seeing with those loans in terms of their performance. We need less of a reserve against something that we had provided extra for. So that is the only reason you see any kind of decline, it is not for any other purpose.
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