Linda Niro: We are going to still be able to reduce our costs of funds, probably not as strongly as what occurred in the second quarter and we are looking for a pick up in asset yield as well.
Damon DelMonte (KBW): How are you looking at the provision and charge-offs going forward?
Linda Niro: It is going to be determined by our monthly and quarterly evaluations of the lending portfolio and the risks that we see at the end of the quarter determined by growth in the portfolio, the mix, and its commercial loans, increased to an extent and also what happens with non-performing loans.
Right now, we are not seeing any significant change in that number. The one $16 million loan really was just out there and non-performing really a timing issue. So, it is just a result of our analysis and what we see when we get to quarter-end.
Damon DelMonte (KBW): If we exclude that $773,000 severance related charge, is that a good run rate going forward?
Linda Niro: Probably be a little bit less, but you definitely want to pull that $773,000 out.
Rick Weiss (Janney Montgomery Scott): What is your perception of economic credit conditions?
Linda Niro: This is somewhat worse than the late 1980s and early 1990s cycle because it is so widespread in terms of it being not just residential, but you have home equity of credit cards and those sorts of things, but it looks from our standpoint hopefully things are turning around a little bit in our market area.
Chris Martin: Just to add to expand upon it, really would be the declining dollar, oil, the global environment, and the liquidity issues that have surfaced from all this. It is not just the United States having a problem, it is everybody that has bought into the paper and now, we have to undo and it is going to be a little bit longer process.
Paul Pantozzi: In the last 1980s, early 1990s, we were not as diversified as we are today. We were in the early stages of getting into commercial lending back then and as the market was turning, we were sitting on the sidelines for maybe a year and a half to two years waiting for it to improve.
Rick Weiss (Janney Montgomery Scott): Would the housing bill have any effect on Provident?
Paul Pantozzi: From what we heard we do not see any beneficial effect or adverse effect on our bank.
Matt Kelley (Sterne, Agee): What kind of data points do you have on the underwriting there combined loan to values on the home equity portfolio and are there any kind of trends or commentary on that piece of your loan book?
Chris Martin: We feel good about the portfolio itself, we never went really above 80% loan to values; we were never players in 100% or 125%. We score everybody, we look at the paper, and we do not want anybody to be overextended. It doesn''t help them and it doesn''t help us.
So, from that standpoint, we feel real good about that portfolio and draw downs were still in the low 40% utilization rate. So, though there might be people that will have to use it, we watch it, we are actually seeing a lot of business come in from the larger banks that have documentation that shut people down in the middle of what they are doing.
We are getting the advantage of them coming to us and albeit, we are not offering up the numbers that they probably had, but we are offering them a resolution to their issues and allowing them to still draw down some of the equity in their home.
Matt Kelley (Sterne, Agee): In the single family portfolio, are you seeing a significant pickup in origination activity and the potential for some opportunities for community institution like yourself to gain share?
Linda Niro: We have been seeing that all year as different players have exited the market, we are seeing people come back to community banks like Provident, and so we view it as an opportunity to put on additional residential loans, it helps us core up sell and expand relationships with our customers.
Paul Pantozzi: We never stop lending, and that is a key factor as well.
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