Question-and-Answer Session
Operator
Thank you. Ladies and gentlemen, the question-and-answer session will be conducted electronically. (Operator Instructions). Our first question will come from Avi Barak with Sandler O'Neill.
Avi Barak - Sandler O'Neill & Partners L.P.
Good morning, guys.
Company Speaker
Hi, Avi.
Drew Hostetter
Good morning, Avi.
Avi Barak - Sandler O'Neill & Partners L.P.
Three quick questions for you. Firstly, on the new margin guidance, what is your assumption for rates for the rest of this year, long and short?
Drew Hostetter
We believe that the short end will stay where it is and the long end, it will just go up slightly.
Avi Barak - Sandler O'Neill & Partners L.P.
Okay. Secondly, in terms of the deterioration in asset quality this quarter, I was hoping if you could give us some color whether that deterioration accelerated through the quarter or if it started out kind of difficult in the beginning of the quarter and then stabilized towards the end; and if so, which asset classes show the acceleration and which of your geographies did show the same acceleration?
William Reuter
Well, I'll be able to answer on that. Avi this is Bill. I'll ask Mike Quick to address that first.
Avi Barak - Sandler O'Neill & Partners L.P.
Sure.
Michael Quick
It was pretty much evenly throughout the quarter. I can tell you that, if you want to know where some of the non-accrual came from, about $14 million came out of the New Jersey division which covers Eastern Pennsylvania. About $18 million came out of Maryland division which covers all of Maryland and parts of lower Central Pennsylvania and in the PA divisions which covers everything from Berks, Chester to Rudith 81 (ph), we had approximately $11million particularly in that area.
Now, to now give you more insight, commercial C&I lending was approximately $8 million, LAD construction was approximately $22 million and real estate commercial was approximately $13 million.
William Reuter
Avi, I'll just put in a different way. The -- I think we indicated perhaps even in the last conference call, the sector where we're seeing or geographic area where we're seeing the most deterioration is along the I-95 corner that ranges from Delaware line running down through the Maryland DC line. And the second area I would say, that we are seeing deterioration is the ID-1 (ph) from the Hagerstown marketplace up to Cornwall and to Harrisburg.
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