Question-and-Answer Session
Operator
(Operator's Instructions) And we go first with Craig Siegenthaler with Credit Suisse.
Craig Siegenthaler – Credit Suisse
Thanks and good morning. Just a few questions here, first on the nonperforming loan roll forward in the press release, page 28. I am looking at the inflow of NPLs which only decline modestly which mean the NPL growth deceleration was really caused by an increase in payments and dispositions. How easy is the current run rate above $300 million to reoccur in the fourth quarter? Because it actually picked up a lot sequentially.
Jeffrey B. Weeden
Well, certainly Chuck can comment on this too, but I think we've seen improved liquidity in the market that started in the second quarter and really continued into the third quarter. It remains to be seen, obviously, how that liquidity continues on with all the rest of the assets that are obviously out there from other institutions as well as the FDIC, but we remain positive that liquidity will be there.
It's a question obviously then of price and we have been moving forward to seal a number of these loans, as well as working with our clients, and some of course of what's coming in on payment share payments from clients that also occurred during the current quarter. As to whether that remains, we've got to see kind of how the economy continues to progress here and while we're very, very cautious on it, the tone is better, but it's not what we would call back to a normal at this point in time.
Charles S. Hyle
I think Jeff has covered it well that the tone has definitely improved quarter over quarter and we're seeing it really in a slightly wider range of assets as well, both straight in loan sales as well as OREO sales. So, not a great torrent, but certainly an improved flow over the last quarter.
Craig Siegenthaler – Credit Suisse
And then just actually looking at your CF&A segment, really your C&I segment, I'm wondering what drove the pickup in the NPLs in the second quarter, and then this level continued to be really flat in the third quarter — I was wondering if there was several large loans in the second quarter balance? And if you look at it on a Y-9C filing basis, the growth rate was actually higher in the second quarter than I think you guys report here. So I'm wondering if there's anything kind of unusual in that second quarter results which could have came out?
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