Question-and-Answer Session
Operator
(Operator instructions). Your first question is from the line of Matthew O'Connor with Deutsche Bank.
Matthew O'Connor – Deutsche Bank
Good afternoon.
Steve Steinour
Hey, Matt.
Matthew O'Connor – Deutsche Bank
First question is, last quarter you deep dived into commercial real estate and C&I to some extent, and I think we had some acceleration of losses related to that. This quarter there is a change in the timing of recognizing losses and resi mortgage. Are there any other things like this that you can see coming down the road in terms of how you deal with the losses or deep dives, and things like that?
Steve Steinour
Well, Matt, we are continuing to be concerned about commercial real estate. We talked about that when we did the fourth quarter April announcement. We think that's the challenge, certainly for the years, and I think most people would say it's going to be a challenge into 2010, and we believe that's the case. Although a quarter doesn't make a trend, we were pleased with what we saw on the commercial and business banking book.
We decided to take some action on the resi mortgage book, which we think was prudent to do. There's nothing that we're working on at this point regarding a change in charge-offs to answer your question, a change in charge-off policy on any of the portfolios.
Matthew O'Connor – Deutsche Bank
Okay. So, maybe, going from here on, it will be just kind of your more normal, abnormal run rate level of losses as opposed to maybe some of these chunky things?
Tim Barber
Matt, this is Tim. I'd add a couple of comments particularly on the residential side. We've been looking at ways to move some of the risk in the residential portfolio for quite a while. We think that we found an opportunity where the execution made sense to us, and so we took advantage of that and that's part of the chunkiness, as you call it, in the third quarter results. So, that wasn't planned, that was a case of taking advantage of an opportunity that presented itself. So, as Steve said, we don't have any other macro changes in charge off policy on the horizon.
Steve Steinour
We did sell a couple of small commercial portfolios as well that were – I'd characterize this is sort of testing the market and understanding if we think there's an opportunity that makes sense, then we proceeded. We're not trying to signal an intent to sell large boxes [ph] of nonperforming or near nonperforming. On the other hand, we're looking at all options. So just, we'll continue to do that.
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