Question-and-Answer Session
Operator
Thank you, sir. Ladies and gentlemen we’ll now begin the question and answer session. (Operator’s instruction) And our first question will come from the line of Joe Gladue with B. Riley. Please go ahead.
Joe Gladue - B. Riley
Let me first start out on the income statement, I guess in the press release in regards to increases in other expenses that it mentioned a couple of things. Well, I guess that might have been – mentioned FDIC insurance expenses and as part of the reason that was up. And I was thinking that should be going down after the special assessment. Just looking for more color on what was driving the, I guess, close to $1.3 million increase and other non-interest expenses?
Edward J. Czajka
Yeah. So we had an essentially a one-time catch up with FDIC premiums. Some time ago they did change the methodology. These were previously pre-paid assessments and they moved that over to a different method whereby you would be accruing FDIC premiums and then paying them out. And so this is a one-time catch up on that to the tune of a little over a million dollars this quarter. Obviously that’ll be a one time expense.
Joe Gladue - B. Riley
Okay. All right. And I guess, in regards to assets quality. You mentioned some step up in appraisals and just reviewing loans. Just wondering if you could give us an idea of how many – what portion of the loan portfolio got new appraisals during the quarter or got reviewed or whatever?
Li Yu
Well, all construction and landlords, our policy has been to get appraisal for every six months (inaudible) at time. Okay. And then for the ones that is even showing in between that would take a close look at it. If we see it as a big valuation (inaudible) we will early order the appraisal on the matter. So we’re fairly current on the loan appraisals as of September 30th.
Joe Gladue - B. Riley
Okay. Also, I guess, I was just wondering if you could give us a clearer picture of sort of the – you did have a good decrease in the size of the loan portfolio. Just trying to figure out the ins and outs between loan sales and net charge offs and originations and everything. Could you, I guess, walk me though that?
Li Yu
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