Investment securities totaled $177.1 million at the end of September 2012, compared to $194.9 million at the end of June and $218.2 million a year ago. At September 30, 2012, the investment portfolio was comprised of 51% U.S. Agency securities (primarily Federal Home Loan Bank and Federal Farm Credit Bank debt), 12% Alaskan municipality, utility, or state agency securities, 30% corporate securities, 6% U.S. Treasury Notes, and 1% stock in the Federal Home Loan Bank of Seattle. The average estimated duration of the investment portfolio is less than two years.Loans held for sale increased to $37.3 million at the end of the third quarter, up from $22.6 million at June 30, 2012 and zero a year ago, as a result of continued strength in mortgage refinancing activity. Northrim purchases these loans from its mortgage affiliate and sells them into the secondary market on pre-arranged commitments. “We increased our portfolio loans 7% year-over-year as our efforts to increase market share are gaining traction,” said Beedle. Portfolio loans totaled $671.6 million at September 30, 2012, as compared to $656.9 million at the end of June 30, 2012, and $629.7 million a year ago. At September 30, 2012, commercial loans totaled $251.2 million and accounted for 37% of portfolio loans, compared to $240.4 million at June 30, 2012, and $228.5 million a year ago. Commercial real estate loans, of which 23% are owner occupied, totaled $339.4 million at September 30, 2012, and accounted for 51% of portfolio loans, compared to a total of $340.5 million at June 30, 2012, and $316.4 million at September 30, 2011. Construction and land development loans totaled $47.3 million at September 30, 2012, and accounted for 7% of portfolio loans, compared to $40.9 million at June 30, 2012 and $46.0 million at September 30, 2011. “We are starting to see new projects break ground in the residential housing market, after more than three years of declining construction activity. With the increasing number of new residential permits being issued in Anchorage this year, the homebuilding industry is improving and confidence is returning for both buyers and sellers,” said Beedle.