Matthew Clark – Sterne Agee
Got it. Thanks, Chris.
Operator
The next question we have comes from Gary Tenner, D.A. Davidson. Please go ahead.
Gary Tenner – D.A. Davidson
Thanks, good morning. Just a couple of questions I guess first sight I was a little confused on the expense commentary you mentioned that expenses were lower partially attributable to lower salary and benefit expense. But it looks like sequentially that line item was actually higher, so was there something embedded in the salary and benefit line in third quarter or fourth quarter that kind of offset some savings from the ASB acquisition?
Chris Myers – President & Chief Executive Officer
Quarter over quarter our expense were down but there is certainly elevated year over year. I think a lot of the acquisition related expenses were pushed through late in the third quarter and some of those carried over into the fourth quarter in terms of creating all of our efficiencies but really for 98% of those expenses related to the acquisition of American Security Bank and the ongoing costs that we consider temporary costs are really extracted out and were, they’ve been fully integrated so to speak and we’re ready to roll in 2015. So I think from an expense standpoint we’re pretty well positioned there.
But also, I want to mention expenses and looking forward to 2015 we are investing in new bankers and that is going to, so salaries and benefits I think will still stay somewhat elevated. And that’s really one of the big changes year over year from 2014 to 2013 was our expenses are up but it’s really most of its salary related and the other thing is it’s related to technology and just infrastructure related to cyber security and all those kinds of things.
Gary Tenner – D.A. Davidson
And secondly on, for the San Diego branch maybe because you just talked about progress there and kind of where your loan footings have gotten to at this point in that franchisee?
Chris Myers – President & Chief Executive Officer
And we haven’t announced what their loan totals are at this point. But they are gaining good momentum, I think we got some really good people there. We’ve brought on some new clients. I think so far I would say it’s on track. And we hope to be able to build that to footings of close to a $100 million over the next 12 months to 18 months in terms of loans and deposit totals together.
Gary Tenner – D.A. Davidson
So, I am sorry a $100 million loan and deposits combined over the next to 12 months to 18 months?
Chris Myers – President & Chief Executive Officer
Yes. I would hope that we’re sitting here in June of 2016 and they have got $100 million between loans and deposits in that office.
Gary Tenner – D.A. Davidson
Ok.
Chris Myers – President & Chief Executive Officer
It’s not going to move the needle for the company but it’s a good, we’re counting on to be an important long term market for us.
Gary Tenner – D.A. Davidson
Ok. Thank you.
Operator
As a reminder, if you would like to participate in today’s Q&A, please press * then 1 on your phone. Again, it is * then 1 to ask a question. Our next question comes from Julianna Balicka of KBW.
Julianna Balicka – KBW
Hi, I have a follow-up, when you’re thinking about reserves and on the moving parts around that, how much more reserve leverage do you think you have in terms of supporting earnings versus and when do you think you’ll start to get some kind of normalization of credit cost?
