Question-and-Answer Session
Operator
(Operator Instructions) We’ll take our first question from Kevin Fitzsimmons with Sandler O'Neil
Kevin Fitzsimmons – Sandler O'Neil
Good morning Richard.
Richard Hickson
Good morning Kevin, how are you?
Kevin Fitzsimmons – Sandler O'Neil
Good, thanks for having me. A couple of questions; first I know you talked a little bit about Texas and on credit you spent a lot of time on Florida, but with Texas I know it’s a smaller part of the company, but it looked like the provision came in below net charge-offs, while non-performers increased link quarters. So I was just wondering if you could just address that; what is happening in Texas related to credit and probably your outlook in terms of how energy is going to affect that market. Thanks.
Richard Hickson
We’ll be happy to. That was one loan for us and the other piece of ORE down there is supposed to close next month. So, when we look at it, we just have had a decrease, I guess in the level criticized down there.
Jerry Host just spent there days down there and we did a complete study of all of our residential lot, land, homes under construction, commercial, retailer, whatever and we don’t seem to be in any situation that appears to be deteriorating on the real estate side. I’m going to let, Jerry talk about his visits down there and then Bob Hardison will comment on our exposure to the energy industry.
We’re not the one to be an expert on what’s going to happen to Huston relative to energy. I lived down there a long time and I don’t think $50 oil is going to make a real significant impact. As you know, they’re expecting to lose about 50,000 jobs in Huston next year or this year in what we see. Jerry will talk about his trip to Huston.
Jerry Host
I will, thank you Richard. I guess in a nutshell, after visiting was both our leading officers and with a number of customers that are in primarily in the residential development and building business, the consensus was that Texas has not experienced the same downturn in value that we’ve seen in so many other areas of the county, number one.
Number two, because they saw this coming, this downturn specifically in California and Florida coming, they reacted more quickly. They slowed the acquisition of land, development slow and if you look at some of the metro study work that is done in the Houston market specifically, you’ll see that the number of home coming online versus the sales has remained fairly consistent.
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