Tim O’Brien – Sandler O’Neill
Great. And as far as the tax impact of that, could there be another kind of tax hit here in the first quarter similar to what we saw in the fourth quarter before it normalizes?
Mick Reynolds – Executive Vice President & Chief Financial Officer
I wouldn’t think it would be quite as high because most of the legal expenses rather way on the investment banking fees are not deductible. We will have a little bit more on the legal fee side, but no, I wouldn’t think the effective rate would be as high as it was in the fourth quarter. But I would expect it to, it could possibly a little higher than the 35% we project for the year.
Tim O’Brien – Sandler O’Neill
And then last question for Casey. Casey, kind of in the narrative about reserves and provisioning, you implied that that $150,000 level is the level you guys are comfortable with, so by extension does that suggest that you guys will provision into similar level for new loans that you guys add in book growth that you have if you are going forward, baring exclusive of the deal of course. Is that how it will work? Or is it really on an absolute dollar basis we are talking?
Casey Hogan – Executive Vice President & Chief Operating Officer
Yeah, thanks, Tim. I wouldn’t suggest that we are going to peg any of our decisions to that $150,000.
Tim O’Brien – Sandler O’Neill
No pegging allowed?
Casey Hogan – Executive Vice President & Chief Operating Officer
Right. So when you look at our coverage of our non-performers at 786% and I mean clearly we do all the right stuff with our impairment analysis and our qualitative and environmental factor now, so all those things, I wouldn’t suggest that you look to that as the peg, but we will continue to be appropriately reserved for sure.
Tim O’Brien – Sandler O’Neill
Thanks for all the help guys.
Casey Hogan – Executive Vice President & Chief Operating Officer
Thanks, Tim.
Roger Busse – President & Chief Executive Officer
Thanks, Tim.
Operator
All right. Thank you for those questions. We have two more callers in the queue. Go ahead and move our next caller up. And again, *8 if you’d still like to ask a question.
Jackie Chimera – KBW
Hi, guys. This is Jacque Chimera, KBW.
Roger Busse – President & Chief Executive Officer
Hi, Jackie.
Jackie Chimera – KBW
I’m was really thinking if I could get a little bit more color on just some of the construction fundings in the quarter since they are a little bit hidden behind what was paid off. I know, if my notes are correct, over the past couple of quarter, there have been a lot of constructions that have gone unfunded and then they continue to roll and fund throughout the quarters. Are there still build ups from past quarters as well as what we was booked in the fourth quarter or did most of that fund last quarter?
Damon Rose – Senior Vice President & Chief Credit Officer
Jackie, hi, this is Damon Rose. Yes, there is still quite a bit of new construction out there that we did book in the fourth quarter or that will be booked here this month that we will continue to build. I think our expectation is that we will see that construction number grow this quarter.
Jackie Chimera – KBW
Were there a lot of fundings that took place in the fourth quarter?
Damon Rose – Senior Vice President & Chief Credit Officer
I wouldn’t characterize it as a lot of fundings, but activity was, I’d characterize it as normal activity.
