Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Ken Zerbe with Morgan Stanley.
Ken Zerbe - Morgan Stanley
Thank you. Al, just your last comment there that you expect to I guess stimulate resolution of problem credits. Should we make the assumption A, that those are construction credits and B, that that would imply fourth quarter charge-offs would be at elevated levels, either at or above current charge-off levels?
Allan R. Landon
I think it’s safe to say that it is centered in the construction area but not exclusively and I made the comment because we are trying to get out in front of these things and push people along. Mary reported that we took some charge downs here in the third quarter. We think we’ve got these things at pretty sound levels right now, though I wasn’t trying to telegraph any increased charge-offs here in the fourth quarter. The process of stimulating action on the part of some borrowers can take some time. We think we’ve got these where they belong but we’ll find out more as we see what happens here in the resolution process, Ken.
Ken Zerbe - Morgan Stanley
Okay, and then the other question I had was can you remind us the balance you have in terms of syndicated credits right now and after the [inaudible] sales and are you worried about any of those individual credits?
Mary E. Sellers
We have $281 million in syndicated credits. That’s down from $362 million at the end of the second quarter. $33 million is what I would consider higher risk, $22 million of which was the homebuilder I referenced in our -- residential homebuilding exposure.
Ken Zerbe - Morgan Stanley
Okay, great, sorry. All right, perfect. Thank you.
Allan R. Landon
And I would add we have learned that while there are no imminent danger signals, you should always be worried.
Ken Zerbe - Morgan Stanley
Fair enough.
Allan R. Landon
That’s the nature of that business I think, Ken.
Ken Zerbe - Morgan Stanley
Okay, great. Thank you.
Operator
Your next question comes from the line of Brett Rabatin with Sterne, Agee.
Brett Rabatin - Sterne, Agee & Leach, Inc.
Good morning, everyone. I wanted to first ask from a fed fund perspective, if it is fair to assume that that dollar amount continues to atrophy in the fourth quarter, or can you give us a little color on your thoughts about liquidity going forward?
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