Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Daniel Arnold - Sandler O’Neill.
Daniel Arnold - Sandler O’Neill
Just a couple of quick questions here; first on the credit front, this is obviously for me the highlight of the quarter. A little different than what I have been seeing from some of the other companies out there. I just wanted to see just generally why you think you guys are seeing the decline in NPA’s when most people are seeing increases here. Then just kind of broadly speaking, as you guys look forward and you look at your watch list and credits, so you guys are looking at that might be trouble. How do you see that going forward?
Mark Bradley
Well, you’re breaking up a little bit there Dan, but I’ll try to address it. Obviously we didn’t have any new large loans or really any loans go on to the nonperforming list in the first quarter, that doesn’t mean that we don’t have two or three or four loans that we are still concerned about.
I think the good news is that we saw some stabilization in the first quarter and the other piece of good news is, we are still seeing consumer loans meaning, mortgage and loans individuals performing very well from the delinquency perspective. However, with the economy the way it is, that’s still a concern for us as the year plays out.
So, maybe we were a little early to the nonperforming party last year, but there are still some loans out there that we’re looking at and that are millions of dollars on that list, but we are always looking at different loans. We didn’t see much degradation in the first quarter.
Daniel Arnold - Sandler O’Neill
What did the watch list do from the fourth quarter?
Mark Bradley
Was your question about the watch list?
Daniel Arnold - Sandler O’Neill
Yes.
Mark Bradley
Trying to find my paperwork. Really not much change from the end of the fourth quarter. We did have a significant loan upgrade, but it was offset by a couple of downgrades. So the net impact was fairly flat, but again as we look at our numbers we had several quarters in a row where non-performers were growing. So, I think our first step was to get some stabilization, which we saw in the first quarter.
Daniel Arnold - Sandler O’Neill
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