Question-and-Answer Session
Operator
(Operator Instructions). One moment for our first question please. We do have a question from Sandler O'Neill. Your line is open.
Avi Barak - Sandler O'Neill
Couple of quick questions on credit, should we expect the provision to return to more of a second
quarter like run-rate borrowing any kind of further dramatic melt down in the economy from here?
Peter Converse
I would hope it doesn’t even return to that.
Avi Barak - Sandler O'Neill
Okay. And then as far as the charge-off this quarter which I guess were about $18 million is that a reasonable run rate or is that also hopefully at high-end?
Peter Converse
No that, I’m going to let Randy answer some of these credit questions, but I’m so excited to answer them I’m going to step in. You know, that 18.9 million this quarter which was just million more than last quarter is not a run rate. As a matter of fact 8.4 million of it was totally unexpected and we certainly are not looking at that kind of run rate from the second or third quarter to continue. But that’s nothing we can guarantee, but we don’t except it.
Avi Barak - Sandler O'Neill
Sure.
Peter Converse
But Randy maybe you want to answer that?
Randy Anderson
You know what I would add Avi is that some of the charge-offs are write-down to the assets that Peter had mentioned that we had some authentic sales in the OREO portfolio We also had some pending resolutions in the number of our problem credits, where properties are going to be completed and sold. And we thought that it was the opportunity at this point in time to write-down the loans to what the realized net sales amount is going to be.
Avi Barak - Sandler O'Neill
Then just a follow-up Peter to your comment regarding no present plans to raise capital. Would that encompass any form of capital rates and whether it includes potential conversion of preferred stock or trust preferred stock into common, just given how the market seems to be still focused on this tangible common ratio versus Tier 1 etcetera?
Peter Converse
Yeah, it doesn’t and we are not contemplating any form of capital raised in the near term.
Operator
Our next question comes from the line of Michael Rose with Raymond James. Your line is open.
Michael Rose - Raymond James
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