Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from John Arfstrom - RBC Capital Market.
John Arfstrom - RBC Capital Market
May be a question from Randy Mayor first, on the margin you talked about the worst case scenario, 17 basis points of pressure and my guess is there are things you can do to mitigate that and offset some of that, and I am just wondering if you can maybe walk us through with some of the options are to mitigate some of the pressure?
Randy Mayor
We are looking at that John, and some of it is that we will do some short-term investing to get a better yield on there. We do have some FHLB borrowings that are coming due that we would be able to replace. So, that’s kind of what I’ve said was a worst case scenario. So hopefully we would be able to mitigate that some by deploying it elsewhere.
John Arfstrom - RBC Capital Market
Okay. Ron, you probably talked about the charge-off numbers, and I’m okay with math, but it seems like when I added up you didn’t have any charge-offs in Arkansas maybe negligible. Wondering if you can touch on the health of Arkansas because it seems pretty solid and then maybe contrast it with some of REO and NPL flows that you are seeing in and out of the portfolio in Florida?
Ron Strother
Some of these, I want to point out first that we had had some provisions John, I want to take you back to 12/31 ‘08 and if it was a non-performing then we charged it off. If it was performing, we put some provisions in, so a fairly large portion of what we actually took the charges on was in the provisions.
That the charge-offs for the quarter of the $4,144 million that was about performing 491 gross, we had collections of about 300,000, but Arkansas actually led the charge-offs and there was about $2.488 million in Arkansas, the vast preponderance of that was put out back at 12/31 ‘08 in a specific provision and in Florida, it was about $1.6 million.
Florida, we tend to look at the value of the property, as you know if it goes anemic and before we take it into OREO, we will get those things valued, if it’s short sale or otherwise, but at this time the charge-offs Arkansas is slightly ahead of Florida and we knew those credits.
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