Chris Myers – President & Chief Executive Officer
Well I think stuff that we, where we really feel that we get that out of our strike zone is when inappropriately banks will release guarantees of private business owners on loans. That doesn’t mean we don’t have loans in the bank that we have, we don’t have a guarantee for, but the vast majority of our loans we do have a personal guarantee for.
But we’ve seen a little bit of irrationality in that area, so I’d say that’s one area where we get stretched, in fact over the last year we lost a $5 million loan to that very reason. We refused to give up the guarantee and another bank gave up the guarantee and this is on our books, so it came off of our books, we lost that customer.
But sometimes we choose not to play if it’s not appropriate and then I think the other side sometimes we’re seeing on properties in transition, commercial real estate in transition, we’re seeing aggressive loan to values on some of that that we feel meaning in transition is a property that is it is needs some restructuring, needs some refurbishment, needs something to change on it. And we’re seeing some aggressive loan to values on that. The mini perm stuff that, of income producing properties we’re able to compete on that pretty well especially if we have good guarantors behind it.
Aaron Deer – Sandler O’Neill
That’s helpful. And then it looks like you guys took down some short-term borrowings in the quarter, just curious if those have paid down subsequently and how you guys are thinking in general about liquidity given that you guys have a lot of great core deposits and just kind of given your loan outlook and how you’re thinking about using borrowings in alternative funding to fund securities growth versus loan growth?
Chris Myers – President & Chief Executive Officer
We were a little surprised that we had borrowings at the end of the year. I think it was 46 million, is that right?
Rich Thomas – Executive Vice President & Chief Financial Officer
That’s correct, Chris.
Chris Myers – President & Chief Executive Officer
46 million and I think it was just for a day or two that we were borrowing money, one day.
Rich Thomas – Executive Vice President & Chief Financial Officer
One day.
Chris Myers – President & Chief Executive Officer
One day, it was the last day of the year ironically, but that occurred because of as I said in the script, in our call is that occurred because we saw a lot of year end real estate closings literally on the last day or two of the year. And also remember our dairy loans are all advanced up on the last day of the year to the, to wherever they going to be. Since then our normal deposits, the title and escrow deposits that I referred to is dropping down or back to their normal levels. And in turn our dairy, a lot of these dairy loans have now been repaid, because they’ve got their milk cheques in. So we’re now sitting on in excess of well over $100 million in providing overnight money to the fed, is that right?
