The bank's portfolio of commercial loans grew very rapidly between 2005 and 2007. At many other banks, the commercial loan default rates are soaring.

Can you speculate on why their default rate on commercial loans should not be problematic? Were their underwriting procedures solidly based on the adage "know thy customer well" and keep your equity to loans conservative?

Or, is it that the bank's current stock price is at such a steep discount to book that their eventual loan recovery will be far better than the naive investor expects?