Joe Fenech, Hovde Group
Okay. And then just last one. Leslie, on the margin question, will it be at about sort of a forward run rate level, you think, making little or no noise by year end from the purchase accounting? Or will that normalization process with the margin bleed into ’16, do you think?
Leslie Lunak, Chief Financial Officer
I think it would bleed into 2016 to some extent but to a much lesser extent that we have seen in the past.
Joe Fenech, Hovde Group
Okay, alright. Thank you guys.
Operator
We’re taking a couple more of questions that came through. You will have your first question from Gerard Cassidy from RBC. Please proceed.
Gerard Cassidy, RBC Capital Markets
I apologize. I jumped on late. Can you guys give us some color? I just heard you talk about the way the underwriting is being done in condos in southern Florida is more conservative. Tying to that, in the crazy days of 2004 and 2005 in Florida, there were a lot of non-local banks that were lending into that market. Can you give us some color on — are you running into banks from California or overseas that are in the Florida market, or is it primarily the folks that are down there?
John Kanas, Chairman, President and CEO
I might answer, but Tom probably even better. What’s your answer to that Tom?
Tom Cornish, President of Florida for BankUnited
Yeah, I would say — first of all it would be important to distinguish while we enjoy seeing all this growth in the condo market and the construction in the condo market, we are not actually a player in those specific markets. We think those real estate markets are more volatile than markets that we want to be in. But to the point of whose financing it, you are seeing much less out-of-market banks involved in the financing of it. More longer term players are in the market and more local banks are in the markets and some institutional players. But we don’t in any great extent, even though we are not in those deals, we hear about them. We see them in the marketplace. We don’t see the participation of California banks or Chicago banks or other banks financing those condos to the extent that we saw during the last downturn.
Gerard Cassidy, RBC Capital Markets
And how about outside that market or the condo market, just in the markets you are lending into, the commercial and commercial real estate mortgage markets. Are you seeing players that weren’t around two years ago that are now coming into the market? Or is it the regular — the guys that have been there for a number of years?
Tom Cornish, President of Florida for BankUnited
Well, it’s a combination I think of two things. It’s number one, the number of players that are here as indigenous banks in Florida that were not here two years ago is greater. So we have more banks that are headquartered in other parts of the country that are here. What I would call the local market competition has become more than it was two years ago. And I’d say the second piece of that, particularly in the commercial real estate area is we’re seeing a significant resurgence from CMBS market, from long term government sponsored entity markets. We have seen a lot more of this than we’ve seen two years ago so when you reflect back on Raj’s comments about the difference between production and growth, we are in a more natural real estate phase where your institutional players in the market have now returned, and so that’s a competitive difference form where the market would have been two or three years ago.
