Question-and-Answer Session
Operator
(Operator Instruction) Our first question comes from John Hecht of JMP Securities.
John Hecht - JMP Securities
The first is, just a couple of further questions about your credit experience during the quarter. I thought, I heard you right, you're expecting charge-offs kind of level off have come down despite higher increased non-performing assets. Is that going to be the result of I guess better feeling of non-performing assets or is that going to be the result of better recoveries? What are you seeing out there, when you do liquidate a loan in the markets?
John Delaney
Well, John, it varies a lot by the type of loan obviously., to the extent, the non-performing loans are more asset base we have higher recoveries. Historically, prior to the recent kind of market conditions, we were experiencing recoveries for kind of assets secured loans of certainly in excess of 80% and for a long period of time, we had recoveries on kind of asset secured loans in excess of 90%. And then our recoveries on things that were more enterprise value based tended to be more than 70%. That's the way it use to be. The way it is now is things with hard assets, we are generally seeing recoveries kind of in the 50% to 75% range and business or problems that are more enterprise value sub 50%.
So this clearly have been a meaningful affect on recoveries. What’s happened on problem asset is the -- one of the things with the problem assets is, if we have a loan, if we have a $40 million loan that we feel like we need to take a $3 million specific reserve on, and if we feel like that's really the liquidation value, the assets, so you mark a loan from 40 to 37, the whole 40 becomes a non-performing loan.
So one of the things that happens with a non-performing assets is, if you take any specific marks on them, it move the whole asset to the non-performing category. So to the extent, you end up taking relatively modest mix on asset secured loans, you end up potentially ballooning your non-performing loan category, which is why our non-accruals exceed our delinquencies many of these loans are still [carried].
John Hecht - JMP Securities
Okay.
John Delaney
I know that helps.
John Hecht - JMP Securities
I see it’s a classification and kind of credit pipeline situation along with higher recoveries, it sounds like that you are experiencing in the asset based loans relative to many be a couple months ago?
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