Question-and-Answer Session
Operator
(Operator Instructions). And we will go to the line of Damon Delmonte with KBW. Please go ahead.
Damon Delmonte - KBW
I was wondering if you could talk a little bit about your net charge-offs this quarter and what they are comprised of?
John Tietjen
Yes. The majority of them are in the leasing portfolio. Charge-offs were $5.87 million for the quarter, $4.5 million it was in the leasing portfolio.
Damon Delmonte - KBW
Okay. And what is the total balance in leasing portfolio or quarter net?
John Tietjen
$238 million.
Damon Delmonte - KBW
Okay. And what percentage of that is non-performing right now?
John Tietjen
I don’t have that number at this point, Damon.
Damon Delmonte - KBW
Okay. Let’s see, how about as far as, if you look at what your non-performing loans were this quarter, they are pretty much flat quarter-over-quarter. So, if we take out the charge-offs, could you talk a little bit about the NPA or NPL formation during the quarter?
John Tietjen
Could you say that again?
Damon Delmonte - KBW
If you look at your non-performing loans in absolute numbers, they are still around $20 million right, quarter over quarter? But you did have $7.5 million as charge-offs. So, could you describe any of the new non-performing loans that moved into the non-performing status this quarter?
John Tietjen
Again, the largest part of it is going to be in the leasing portfolio.
Damon Delmonte - KBW
Okay. So, the leasing portfolio is contributing to both charge-offs and a rise in non-performing loans then.
John Tietjen
Correct.
Damon Delmonte - KBW
Okay, great. And then with regards to some mortgage banking, could you just give a little color on sustainability of this quarter's level?
John Tietjen
This quarter was very high with an increase in volume, approximately 80% higher than where we were in the third quarter last year. I think rates have started to move upward a little bit, so I would expect that the volume in the fourth quarter would be impacted by that and certainly the first quarter of next year.
Damon Delmonte - KBW
Okay. Great, and then lastly, with respect to TARP in the timeframe to repay that, could you give us a little color on your thoughts as to, would it be something you’d like to maybe do in conjunction with a capital raise, would it be something you would just like to apply to do and just repay it from cash or how do you view that?
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