Mark Tryniski – President & Chief Executive Officer
Good morning Al.
Scott Kingsley – Executive Vice President & Chief Financial Officer
Good morning Alex.
Alexander Twerdahl – Sandler O’Neill
I’m just wondering do you have much ability as we head into 2015 here to continue this mix shift that you have had in the balance sheet replacing securities with loans. I was under the impression that allow your securities with more bullets and they didn’t really, wouldn’t roll until maybe like 2016 or 2017 and that maybe those opportunities might be harder to come by. Is that fair or do they still exist?
Mark Tryniski – President & Chief Executive Officer
Alex, I think they do still exist. We have about $120 million of expected cash flows off our existing portfolio in 2015. The lion share of those are municipal based and unfortunately in a market today, replacing high quality municipal securities has been a challenge as there has been some yield compression of the net yield characteristics, but that’s still our plan, we would like to replace expiring municipal cash flows and to your point, there still is that opportunity to allow a mix change between certain expiring investment cash flows just being put back into investment securities, I’m sorry into loans.
Now, certainly we do expect, Alex to continue to chase deposit growth, new account growth so we do think that from a funding standpoint we’ll continue to be successful gaining core accounts. So it will certainly be dependant on loan growth characteristics being able to stop off that kind of liquidity.
Alexander Twerdahl – Sandler O’Neill
Ok, great and then do you have any commentary on the price of natural gas having fallen, price of oil falling and even though fracking is now officially banned in New York state, I know there is a lot of infrastructure especially in more Southern part of the state where you guys have some branches and into Pennsylvania. Is there any, have you seen anything to sort of or any discussion around the potential impact of the economy in some of those areas?
Mark Tryniski – President & Chief Executive Officer
There has been I think there hasn’t to date we haven’t seen any reduction in that investment. I think a lot of the big the national companies and the big companies that are drilling in our areas are Marcellus Shale is not yet been public about lots of lay-offs and sensation of drilling. With that said, we have some more in the neighborhood of $70 million of credit exposure in that general area related to gas. The majority of that is pipeline related which is still very active, all of it’s within our footprint as well, so we’re not lending to these investors outside of our footprint.
So, it’s not a reason to assume to assume that there will be a reduction in drilling activity in Marcellus possibly, but you know that something that we’re monitoring closely, we’re monitoring the receivables and the operating cash flows of those companies that do have exposure to the national drillers in the Marcellus area that we’re in principally cabin.
