Scot Salvador: Good morning, and thanks, Mike. For the third quarter, total loans increased by $73 million and actual numbers are 1.5%. Year-over-year the increase was $331 million or 7.2%. This quarter marked a continuation of strong loan growth to the bank, coming on the heels of an $87 million increase in the second quarter. The loan increases are spread among all loan categories. Residential loans increased by a combined $56 million with first mortgages increasing by $33 million and our home equity products climbing by $23 million. Commercial loans increased by $17 million in the quarter. As previously stated, the combination of increased interest rates and some new personnel in our commercial loan area has allowed us to be a bit more active versus prior years.
Overall purchase activity in our residential markets has slowed reflecting nationwide trends. Increased interest rates have obviously played the largest role in this. Although other factors such as the time of year also begin to come into play. To help offset this we are putting a lot of focus into capturing a bigger piece of the existing pie in all our regions. Our status as a portfolio lender is an advantage in this regard. One example, as Rob mentioned, is a current promotion whereby existing TrustCo mortgage customers to sell and purchase a new home can obtain a reduction off of current rates by maintaining their financing with TrustCo. Interest rates continue to rise, and we currently stay at [indiscernible] for our 30-year base rate. The higher rates have continued to drive growth in our home equity products as people like to stay and improve their existing home rather than purchase a new one or refinance their first mortgage.
The loan backlog has come down somewhat from last quarter and year-over-year. This reflects both the current marketplace and the time of the year. It does contain a good amount of new money however, given almost a complete lack of refis. And we expect to post continued growth on the quarter. The news and asset quality remains good. Nonperforming loans stand at $17.9 million as of September, down from $19.4 million in June and also down year-over-year. Nonperforming assets declined to $19.1 million from $20.8 million last quarter. A year ago they stood at $19.4 million. Charge-offs posted another small net recovery on the quarter and now total a combined 294,000 net recovery year-to-date. Early stage delinquencies remained solid. The allowance for credit losses stands at 0.95% of total loans and 264% of nonperforming loans.
This is up from a coverage ratio of 244% a year ago. Bob?
Robert J. McCormick: That’s our story and we’re happy to answer any questions you might have.
Operator: Thank you. [Operator Instructions] We have no questions registered. So I would like to hand back to Mr. McCormick for closing remarks.
Robert J. McCormick: Thank you for your interest in our company and for joining us today. And have a great day.
Operator: Ladies and gentlemen, this concludes today’s call. Thank you for joining. You may now disconnect your lines. Thank you.
End of Q&A:
