Question-and-Answer Session
Operator
(Operator Instructions) Your first call comes from Steven Alexopoulos – J. P. Morgan.
Steven Alexopoulos – J. P. Morgan
Larry, if we look at the $150 million increase in non performing assets X the share national credits, what portion of the increase is coming from the loans that defaulted in the quarter versus the portion coming from the deep dive into the commercial real estate book?
Larry Richman
I’ll ask Kevin Van Solkema to speak to that.
Kevin Van Solkema
I want to understand your question. Your question is which portion of those that transferred to non performing loan status in the quarter came from the portfolio review that I referenced in my comments?
Steven Alexopoulos – J. P. Morgan
Yes, versus the loans that actually defaulted in the quarter.
Kevin Van Solkema
I would say probably 70% of those transferred to non performing this quarter actually defaulted this quarter from specific events that I cited those common themes around. And then were some others that we identified through the portfolio review process that we felt it was appropriate to move to non performing because of the weak underlying collateral or the stock clause on the horizon for the borrower’s capacity to continue to pay.
Steven Alexopoulos – J. P. Morgan
Given the magnitude of pressure you’re seeing in the commercial real estate book and on the shared national credit, is there any pressure from the regulators to slow loan growth?
Larry Richman
The answer is we have a very good active relationship with our regulators and there is no pressure from them, yet at the same time they understand that our plans are proper and right and they understand. As I had mentioned, we meet with the regulators on a quarterly basis, so they’re up to date on our plans and our business plan. But there are no formal pressures at all.
Steven Alexopoulos – J. P. Morgan
Of the $1.6 billion of shared national credit, how much of those were put in the portfolio after the strategic growth plan was put in place and what percent of those are you actually lead bank on?
Kevin Van Solkema
All of them have been put under the portfolio after November 2007, so there were no shared national credits in the legacy portfolio. As far as our agenting the credits, we’re about slightly under 20% of the dollars is what we lead as agents.
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