Ken Usdin — Jefferies — Analyst
Okay, first got it. Many Thanks great deal, David. We’ll keep it here given your one question request.
David J. Turner — Senior Executive Vice President, Chief Financial Officer
Operator
Your question that is next comes Brian Foran of Autonomous analysis.
Brian Foran — Autonomous Analysis — Analyst
Hi. Why not a followup regarding the hedges. It really is interesting, after all, most of the local banking institutions generally opted away from including a OCI and money being a — we have viewed as a kind of regulatory relief. Nevertheless now, particularly for a bank it kind of understates your capital ratios in a way like you where you’ve got the outside team. Therefore I wonder, us, what would the capital ratios look like if the unrealized gains were included and is there any scenario where the hedges are so valuable you would actually monetize that — invest them some way in an acquisition or a buyback or is that just too far out if you can just remind?
David J. Turner — Senior Executive Vice President, Chief Financial Officer
Well, so we made our choice to exclude OCI, it absolutely was a option we’d. Had we not made that option, we might have experienced just utilizing the hedges that individuals have actually another $1.7 billion that is pre-tax in our — in money. But when the decision is made by you, you must live because of it. And that is okay. Therefore, towards the level we would take that gain that we see opportunities to terminate those swaps. It could be deferred and amortized and also the income therefore money within the life that is remaining of swaps, which when I’ve mentioned earlier our five year tenor. In order that would simply be in situation where you saw the chances of prices increasing. After which we would get in front of that. That will not appear to be the instance at this time over time. You’re asking the right concern. There will come a true point over time where we do this. Recall the hedges are to safeguard net gain from being degraded as a consequence of the interest rate environment that is low. It is not an incremental. It’s attempting to protect that which we do have. Therefore while we are enjoying that security, there isn’t any significance of us to try to front end gains and usage that for money actions to maintain our profile inside our persistence of creating PPNR.
Brian Foran — Autonomous direct lender payday loans in Utah Research — Analyst
Operator
Your next concern arises from Matt O’Connor of Deutsche Bank.
John M. Turner — President and Ceo
Good early early morning, Matt.
Matt O’Connor — Deutsche Bank — Analyst
Good early morning. Is it possible to simply speak about a number of the expense levers that one can pull, while a large amount of things are shutdown and there is demonstrably lots of increased exposure of workers. However you’ve had type of constant enhancement on costs for quite some time and talk about some just for the items that you can try when you look at the environment right right here? Many Many Many Thanks.
David J. Turner — Senior Executive Vice President, Chief Financial Officer
Yes, Matt. Therefore, we have stayed centered on cost management. I believe we have done a great task here. In the event that you glance at our top groups, salaries and advantages, occupancy and charter fixtures and gear, the places we have been in a position to reduce costs have now been mounted on our branches. We have consolidated a lot that is whole branches than we have exposed. We proceeded to consider that and continue steadily to have — we now have a whole set of individuals centered on our retail network technique to be sure that we’re optimizing that community from a revenue and development generation along with expense optimization.
Therefore you should expect us to keep here. We now have proceeded to cut back footage that is square we’re down some 300,000 square legs within the quarter. We will be down another 600,000 to 700,000 for the complete 12 months. So we’re learning some things, working at home and then we’ve really had missed a beat when it comes to effectiveness and effectiveness. For us to continue to ramp that up even more so so I had mentioned in the prepared comments kind of hoteling and maybe there’s an opportunity.
Our merchant spin, we proceeded to possess programs set up to manage and minimize owner costs in particular regarding the need administration side. Therefore I think, we now have 73 initiatives that people’ve identified in constant improvement. I experienced mentioned we are through 40% of these — really we are through about 32 of those. We will finish another 14 in 2010. So John has expected us to find out exactly how we get good at whatever we do, anywhere you’re in the financial institution, how can you do it better tomorrow than you did today? Therefore I think you need to continue steadily to see us try to find techniques to be much more efficient and effective as time passes. So we’re — we now have some approaches to continue steadily to focus on the trouble part.
John M. Turner — President and Ceo
And I also would simply include, Matt, we have seen a complete large amount of modification and enhancement during the last 4 or 5 days even as we’ve accelerated the requirement to react the way in which we provide our clients. And thus it is thought by me bodes well for proceeded process enhancement. With procedure improvement, we are getting greater effectiveness. We are absolutely invested in effectively managing expenses all the time, but specially during this time period of some great doubt.