Question-and-Answer Session
Operator
(Operator Instructions). Our first question comes from Damon DelMonte of KBW. Please state your question.
Damon DelMonte - KBW
With regards to the Nat City branches, how are the loans that you will be acquiring, how are they performing right now? Any change in quality there?
Kevin O'Bryan
There has been some risk rating migrations not inconsistent with our expectations and not really inconsistent with our own. That's the only real observable phenomenon on this. We've also seen some new product come through that is very, very good. So it's nothing unexpected.
John Koelmel
The only thing I guess I'd add to that, Damon, just to confirm what I think you already know is that we're only picking up current stuff at closing. So to the extent there is any onerous deterioration, it doesn't come over. So, we'll have good clean portfolio when we close the deal on Labor Day.
Damon DelMonte - KBW
Mike, with regard to the securities that you guys have been buying, what types of yields are you getting on this?
Mike Harrington
350 range, little bit more than that.
Damon DelMonte - KBW
You're buying just general MBS securities?
Mike Harrington
Yes. Well, CMO is agency-backed structured product, all agency. Maybe 60% of that is actually Ginnie Mae backed.
Damon DelMonte - KBW
As far as your provision, you've built the reserve up a little bit this quarter. Given that you have a very commercial like balance sheet and loan portfolio, what are your thoughts of the provision going forward in your reserve level?
Mike Harrington
Provisions and reserves will be a function of circumstances at that time. We would expect to continue on the pace we're at now, especially if we continue to grow the portfolio at the pace we're growing it. So, it will be a mix of growth and just what the trends are at that point in time.
Damon DelMonte - KBW
So a level like we saw this quarter isn't out of the question in the coming quarter?
Mike Harrington
No.
Operator
Our next question comes from Rick Weiss with Janney Montgomery Scott. Please state your question.
Rick Weiss - Janney Montgomery Scott
John, I was wondering if I could follow-up on your comments regarding M&A Company. A little bit by surprise, is there kind of anything that you are seeing out there that's maybe better opportunities for you or maybe specific areas that you would like to expand a franchise in turn?
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