Question-and-Answer Session
Operator
Thank you, sir. Ladies and gentlemen at this time we will begin the question and answer session. [Operator Instructions. And our first question comes from the line of Joe Morford with RBC Capital Markets. Please go ahead.
Joe Morford - RBC Capital Markets
Good afternoon Li, how are you doing?
Li Yu
Hey, Joe.
Joe Morford - RBC Capital Markets
Couple of questions. I guess first was I guess, curious why $10 million, what's kind of magic about that size of the offering and also looking ay back your capital rations have improved?
Li Yu
Well, actually that we have done all kinds of stress tests, including the G19 test. And none of the tests indicated we need any capital at all. But, we in the early spring, we just feel it's a good idea to raise a little bit of capital. And so, with that decision we're going through all the words.
For some reason, our offering needs to be approved by the State of California. So, documents were sitting in their office for the good about over one month's period of time. I mean, we have to prepare the document for their review too.
So, all of this takes a whole range of time and then they really start to just continue to do it even with the capital ratio increases. And besides what's decided, because since we don't need that much, why dilute our current shareholders that much, as we are offering the prices.
Joe Morford - RBC Capital Markets
All right, okay. And then the second question was just regarding the credit quality. The total non-performing asset level remained relatively stable. You had a big increase in charge-offs and I was just kind of curious, if you could talk about some of the inflows and outflows this quarter and was it primarily downward migration of kind of previously identified problems or you continue to see new inflows and to be kind of classify the assets?
Li Yu
Actually, that much of the inflows about the assets for the second quarter was the result of migration of the delinquents, delinquent meaning to 30 to 89 days, delinquents into the current quarter. In this quarter, as of June 30th, as we do have a large delinquent numbers and I think I put on the paper that roughly 30 to 55% migration factor still pretty good.
Now, one of the situations is that out of the total delinquent number, roughly $76 million of delinquents are real estate loans. And out of $76 million, more than 83% we have very, very, very current appraisal of valuation on. And we've make appropriate reserves on the ones that's needed to have. The remaining our loans that we think provide enough margin, and it is currently in the order of appraisal stages.
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