STBA
#Hi, <UNK>.
Like I said, it's as Dave said, you have some multifamily, you have some hotels, you have some office, you have some retail, you have some municipal projects that are lumped in there.
The one area that's probably not real active is single family lot development, which we're not seeing a lot of that activity right now.
We do have some churn.
I mean, as projects near completion, then they roll into your other bucket, or get financed out.
So you'll see some ins and outs in that portfolio.
On a linked-quarter, that C&I portfolio was essentially flat.
And there's some seasonality in there too.
I mean, you'll usually ---+ the fourth quarter and first quarter are a little slower than your second and third, just for timing and everything.
There was not anything in the NPA bucket that was directly tied to the oil and gas.
And matter of fact, some of it was just expected clean-up on some of the acquired portfolio out east.
And then, we had a C&I credit out in one of the Ohio markets that just was due to some unforeseen circumstances, just kind of got sideways.
But it was nothing related to oil and gas.
Now that being said, it's something that we're watching.
There's been a couple of companies that have laid off in the area.
You just look at, rig counts are down.
I think at the peak, they were about 125, just looking at statistics a couple weeks ago.
And last year about this time, there were maybe 55 rigs, and now there's 29 in Pennsylvania.
So it's going to have some pressure on some of the supply chain.
But production's up.
It's up to about 20 billion cubic feet a day, I think in the region is the last number I heard.
But the issue still is, getting it to market and the pipeline.
I think capacity is maybe half of that.
Now they anticipate that kind of equalizing about this time next year.
So they'll at least be able to get what they can produce to market.
And then, probably in 2017 to maybe 2018, that number goes up.
So you can start to be kind of a net exporter on the resource.
But that being said too, there's a lot, a lot of activity in the region.
It appears that the Shell is still moving forward with their big project out in Beaver.
We've seen clients that are getting inquiries from a lot of petrochemical type companies, or end users of the products or manufacturing concerns that can be right on top of a cheap energy source.
So even though there might be a little bit of a slowdown for the next year or so, long-term, it's going to be just really, really good for the region so.
It's kind of tough to measure too on ---+ when you're going into the local gas station in the morning, you used to see a few more bodies around from the service company guys.
And so, the impact on those types of businesses or hotels or whatever, still not showing up in the numbers yet.
But again, it's just something we're probably going to take a look at.
Dave or <UNK>, you're welcome to weigh in too.
Our portfolio kind of indirectly tied into it is about $[50] million, and the average risk weightings are about 3.5[%].
So mostly, pretty clean today.
They do have a lot of ties to the energy sector.
So they've had some customer losses related to that.
There's been some consolidation.
I mean, they get couple clients who got sold.
To bigger entities.
And then they ---+ some is tied in, some workers' comp customers, and kind of the shrinking payroll and this stuff is impacting premiums as well.
Well, on a monthly or quarterly basis, that's going to impact ---+ certainly not the whole portfolio.
It might be maybe $200 million to $300 million of the ---+ or not even that much, maybe $200 million of the whole portfolio.
So it's a slow ---+ it's a slower (multiple speakers).
Thanks, <UNK>.
Hi, <UNK>.
Yes, I don't believe anything is on a SNC in the portfolio.
I would probably ---+ maybe a little over half, I would say.
Okay, <UNK>.
I want to thank everybody for participating in today's call.
And <UNK> and Dave and I appreciate the opportunity to discuss the quarter's results, and look forward to hearing from you in our next conference call in January.
So thank you very much.
