Timothy Coffey, FIG Partners
Okay. And given what’s happening in the interest rate environment has that increased potential usage on the warehouse lending?
Steve Gardner, President and CEO
We saw that warehouse outstanding was up just a little bit at the end of the fourth quarter, that market is still fairly over saturated with lenders who provide warehouse loans. The pricing on that product has come down substantially but we’re not willing to drop our pricing into the levels that would be required for us to significantly grow that business. We’re hopeful we’ll benefit from what’s taken place in the mortgage market at least what we have read, as far as the increase in applications and flows in mortgage banking but I would not see that as a significant driver of our growth in the near-term.
Timothy Coffey, FIG Partners
Okay, great. Well thank you for answering all my questions.
Steve Gardner, President and CEO
Thank you.
Operator
Our next question comes from Brian Zabora from KBW. Please go ahead with your question.
Brian Zabora, KBW
Thanks. Good morning.
Steve Gardner, President and CEO
Hi Brian.
Brian Zabora, KBW
So a question on Infinity, you had very strong growth this quarter. Are you starting to see originations also in the West or is it still more in the East?
Steve Gardner, President and CEO
No, we’re seeing the originations in the West. The production is fairly well diversified. We’re spread across 30 states with approximately 50% of the balances in those more highly densely populated states in New Jersey, Texas, New York, California and Illinois.
Brian Zabora, KBW
Okay, that’s great. And then, on the pay downs this quarter, was there any sizable pay down that you had or was there any lumpiness in the quarter?
Steve Gardner, President and CEO
It was pretty broad-based and spread across the portfolio I think that typically the fourth quarter and year-end is usually one of the strongest periods of pay down and we would expect that some of that carries over into the first quarter of the year as well.
Brian Zabora, KBW
Okay. And lastly, on the building of the reserves to I guess approximately 1%. Are you including in that ratio purchasing kind of a fair value discounts? I guess maybe I am looking at it in Sandy and it seems like a pretty good ramp if you are including Sandy, depending on how you are looking at that because you have no reserves come over?
Steve Gardner, President and CEO
With that 1% figure that we said that we’d like to get to over the next 18 to 24 months does not include any credit discounts or purchase accounting marks.
Brian Zabora, KBW
Great. That’s very helpful. Alright, thank you for taking my questions.
Operator
And our next question comes from Don Worthington from Raymond James. Please go ahead with your question.
Don Worthington, Raymond James
Good morning Steve and Kent.
Steve Gardner, President and CEO
Good morning.
Kent Smith, EVP, CFO, Corporate Secretary and Treasurer
Good morning Don.
Don Worthington, Raymond James
In terms of the litigation issue, again, was there any statute of limitations that was driving reviving this case after so long?
Steve Gardner, President and CEO
Well, as we mentioned in the earnings release back in 2005 and 2006, we had argued on a statute of limitations and federal preemption at that period of time and the State Court denied it.
Don Worthington, Raymond James
Okay. And then, in terms of the loan purchases in the quarter, $7.8 million, what types of loans were those?
Steve Gardner, President and CEO
Predominantly Commercial Real Estate related.
Don Worthington, Raymond James
Okay.
Steve Gardner, President and CEO
And there — and Don, I think we have talked about this a number of times, each quarter we are actively in the market we’re buying and or selling loans and where we can take advantage of opportunities we do so from either side of the ledger and you saw we took advantage of some sales and booked some nice gains and at the same time we buy a little bit when the pricing is attractive and the loans are well-structured and meet our needs.
Don Worthington, Raymond James
Okay, thanks for the color. And then one last one small housekeeping question, looked like the total share count was down about 165,000, fourth quarter versus third. What was the reason for that?
Steve Gardner, President and CEO
I’ll have to double check and I’ll have Kent get back to you on that Don.
Don Worthington, Raymond James
Okay, but, it wasn’t buyback or anything like that?
Steve Gardner, President and CEO
No it wasn’t.
Don Worthington, Raymond James
Alright thank you.
Steve Gardner, President and CEO
Alright, very good.
