Joseph J. Savage – President
Hi Casey this is Joe, how are you?
Casey Haire – Jefferies
Doing well.
Joseph J. Savage – President
Great, good. Pipeline actually we’re delighted, pipeline ended the year at a little over200 million dollars and of course we’re happy to have the business in house, a fact that I went over with the team yesterday, we’re already starting to see a rebuild. I would mention that 200+ is not inconsistent with some prior periods or prior end of years in times pass. So we’re not particularly concerned about rebuilding. It does remain to be seen with respect to the growth that we will achieving whether or not we can reciprocate that this year but what is really, really good news and I should probably take a pause to say that John took over the relief at the commercial bank and he’s here in and if you’ll note the transaction or the change, the transition has been absolutely seamless. I would say that we would expect consistent performance and that really has everything to do with heading the RNs and we’ve grown our RNs and we’ve got about 70+ that are in the marketplace today and we all are doing very, very well so long answer to your short question, expect us to perform at about those levels could be more termed in the book but we’re in a good place.
Glenn I. MacInnes – Chief Financial Officer
Casey let me just add one thing to that if I look at the total pipeline, Joe’s highlighting all the progress on the commercial but I think we’re probably looking on a pipeline of 650 to 675 at the quarter and I think we ended the year somewhere around 800, little over 800. A lot of that came in and was pulled down as you see in our 3 percent loan growth so I think we’re rebuilding it across the business.
Casey Haire – Jefferies
Okay, great and the Cam just one for you, on fly 23 the asset sensitivity, I’m assuming that is not profitable enough for the HSA transaction, so what would that look like?
Glenn I. MacInnes – Chief Financial Officer
In the 8.5 if that’s what you meant, about 2 .
Casey Haire – Jefferies
Great.
Glenn I. MacInnes – Chief Financial Officer
2% at the HSA, so that is in there because we model that going forward so about 2% of the 8.5 is relative to HSA.
Casey Haire – Jefferies
Oh for the deal that was closed on January 13th?
Glenn I. MacInnes – Chief Financial Officer
That’s right. We will model that in the rest of it. If you look at it 2% is due to organic growth and portfolio positioning, another 1% from floating rate securities so there’s a few but the answer is about 2% of the 8 and a half with HSA.
Casey Haire – Jefferies
Understood, thank you.
Glenn I. MacInnes – Chief Financial Officer
You’re welcome.
Operator:
Thank you, our next question today is coming from Mark Fitzgibbon of Sandal O’Neill and Partners.
Mark Fitzgibbon – Sandal O’Neill and Partners
Hey guys good morning. You guys have done a great job driving the cost structure lower and you metrix look relatively favorable relative to your peers, I guess I’m wondering is there room longer term to drive costs lower or do you think the expense run rate is going to flatten out for a while here?
Glenn I. MacInnes – Chief Financial Officer
Good morning. So we appreciate your compliment Mark and we have had a lot of success at driving down expenses and I think we’ve been saying more and more on calls recently that we look to keep the efficiency ratio under 60 as we continue to invest in our strategies and our businesses that are generating economic profit so it’s less about squeezing more out of the ratio, and it’s more about level setting and investing in the business as we go forward with the idea that increasing revenues will absorb the expenses required to advance the strategies so less about significant positive operating leverage and more about keeping the efficiency ratio under 60 so we can continue to invest in our businesses. Let me, if I may, just add Mark as you know there’s pluses and minuses as we continue to rationalize our branch network in fact it’s part of the 2.7 million at one time as a couple hundred thousand that’s due to re-stacking of 5 or 6 offices into solidation so the community bank and the businesses continue rationalized distribution. That money is being reinvested in revenue generating type of businesses so that’s a process that’s continuing all while we keep the efficiency ratio at or below 60%.
