Ken Usdin — Jefferies — Analyst

Okay, started using it. Many Many Many Thanks a complete lot, David. We’ll leave it here given your one question request.

David J. Turner — Senior Executive Vice President, Chief Financial Officer

Operator

Your question that is next comes Brian Foran of Autonomous analysis.

Brian Foran — Autonomous Analysis — Analyst

Hi. Possibly a followup regarding the hedges. It is interesting, i am talking about, all of the local banking institutions generally opted away from including a OCI and money as a — we have viewed as a type of regulatory relief. However now, specifically for a bank as if you in which you’ve got the surface group, it type of understates your capital ratios in ways. Thus I wonder, us, what would the capital ratios look like if the unrealized gains were included and is there any scenario where the hedges are so valuable you would actually monetize that — invest them some way in an acquisition or a buyback or is that just too far out if you can just remind?

David J. Turner — Senior Executive Vice President, Chief Financial Officer

Well, so we made our choice to exclude OCI, it had been a option we had. Had we not made that option, we might just have had utilizing the hedges that individuals have actually another $1.7 billion which is pre-tax inside our — in money. But when you make the decision, you must live because of it. And that is okay. Therefore, to your degree we would take that gain that we see opportunities to terminate those swaps. It will be deferred and amortized additionally the income therefore money on the remaining lifetime of the swaps, which when I’ve mentioned earlier our five year tenor. To ensure would simply be in a full instance in which you saw the chances of prices increasing. After which we would get in front of that. That will not be seemingly the full situation at this time with time. However you’re asking the question that is right. There may come point with time where we accomplish that. Keep in mind the hedges are to guard net gain from being degraded because of the low interest environment. It is not an incremental. It really is attempting to protect everything we do have. So while we are enjoying that security, there is no significance of us to try to end that is front and usage that for money actions to maintain our profile within our consistency of creating PPNR.

Brian Foran — Autonomous Analysis — Analyst

Operator

Your next concern originates from Matt O’Connor of Deutsche Bank.

John M. Turner — President and Chief Executive Officer

Good early early morning, Matt.

Matt O’Connor — Deutsche Bank — Analyst

Morning good. Is it possible to just speak about a few of the expense levers that one can pull, while a large amount of things are shutdown and there is clearly plenty of focus on workers. You’ve had variety of constant improvement on costs for quite some time and simply mention some of this items that you can test into the environment here? Many Many Thanks.

David J. Turner — Senior Executive Vice President, Chief Financial Officer

Yes, Matt. Therefore, we have always been centered on cost management. I believe we have done a job that is really good. The places we’ve been able to reduce expenses have been attached to our branches if you look at our top categories, salaries and benefits, occupancy and charter fixtures and equipment. We have consolidated a whole many more branches than we have exposed. We proceeded to consider that and continue steadily to have — we now have a entire set of individuals centered on our retail system technique to ensure that we are optimizing that community from the revenue and development generation along with price optimization.

Us to site there continue there so you should expect. We now have proceeded to lessen footage that is square we are down some 300,000 square foot when you look at the quarter. We will be down another 600,000 to 700,000 for the year that is full. So we’re learning some things, working at home and now we’ve actually had missed a beat with regards to effectiveness and effectiveness. For us to continue to ramp that up even more so so I had mentioned in the prepared comments kind of hoteling and maybe there’s an opportunity.

Our merchant spin, we proceeded to own programs set up to manage and lower owner expenses in particular in the need administration side. Therefore I think, we now have 73 initiatives that individuals’ve identified in constant enhancement. I experienced mentioned we are through 40% of these — really we are through about 32 of these. We will complete another 14 in 2010. So John has expected us to determine exactly how we get good at whatever we do, anywhere you’re in the financial institution, how can you do it better than you did today tomorrow? I really think you need to continue steadily to see us try to find how to be more effective and efficient in the long run. Therefore we are — we’ve some methods to continue steadily to focus on the trouble part.

John M. Turner — President and Ceo

And I also would simply add, Matt, we have seen large amount of modification and enhancement throughout the last 4 or 5 months once we’ve accelerated the necessity to respond the way in which we provide our clients. And thus i do believe it bodes well for proceeded process enhancement. With process enhancement, we are getting greater effectiveness. We’re positively invested in effectively managing expenses all the time, but especially during this time period of some uncertainty that is great.