Ken Usdin — Jefferies — Analyst
Okay, first got it. Many Many Thanks a complete 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 next concern arises from Brian Foran of Autonomous analysis.
Brian Foran — Autonomous Analysis — Analyst
Hi. Why not a follow-up in the hedges. It really is interesting, after all, most of the banks that are regional opted away from including a OCI and money as being a — we have viewed as a kind of regulatory relief. The good news is, particularly for a bank as if you in which you’ve got the surface group, it types of understates your capital ratios in ways. And so I wonder, if you’re able to just remind us, exactly what would the administrative centre ratios seem like in the event that unrealized gains had been included and it is here any situation where in fact the hedges are incredibly valuable you’ll really monetize that — invest them a way within an purchase or even a buyback or perhaps is that simply too far out?
David J. Turner — Senior Executive Vice President, Chief Financial Officer
Well, it was a choice we had so we made our decision to exclude OCI. Had we not made that choice, we might just have had utilizing the hedges we have actually another $1.7 billion that is pre-tax inside our — in capital. But when you will be making your choice, you need to live because of it. And that is okay. So, towards the level we would take that gain that we see opportunities to terminate those swaps. It will be deferred and amortized as well as the income therefore money within the life that is remaining of swaps, which when I’ve mentioned earlier our five year tenor. In order for would simply be in a full instance in which you saw the chances of rates increasing. After which we would get in front of that. That will not appear to be the instance at this time with time. However you’re asking the right concern. There may come point over time where we accomplish that. Recall the hedges are to guard net gain from being degraded as a consequence of the interest rate environment that is low. It is not an incremental. Its attempting to protect everything we do have. So while we are enjoying that security, there isn’t any requirement for us in an attempt to end that is front and employ that for money actions to maintain our profile within our persistence of producing PPNR.
Brian Foran — Autonomous Analysis — Analyst
Operator
Your question that is next comes Matt O’Connor of Deutsche Bank.
John M. Turner — President and Ceo
Good early morning, Matt.
Matt O’Connor — Deutsche Bank — Analyst
Morning good. Could you simply speak about a number of the expense levers that you could pull, while lots of things are shutdown and there is demonstrably lots of focus on workers. you’ve had style of constant improvement on costs for quite a while and simply discuss some associated with the items that you can test into the environment right here? Many Thanks.
David J. Turner — Senior Executive Vice President, Chief Financial Officer
Yes, Matt. Therefore, we have always been centered on expense management. I believe we have done a job that is really good. The places we’ve been able to reduce expenses have been attached to our branches if you look at our top categories, salaries and benefits, occupancy and charter fixtures and equipment. We have consolidated a whole many more branches than we have exposed. We continued to consider that and continue steadily to have — we now have a group that is whole of centered on our retail community strategy to be sure that we are optimizing that community from a income and growth generation along with price optimization.
Us to continue there so you should expect. We now have proceeded to cut back footage that is square we are down some 300,000 square legs into the quarter. We will be down another 600,000 to 700,000 when it comes to payday loans in Colorado year that is full. So we’re learning some things, working at home and we also’ve actually had missed a beat with regards 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 own programs set up to manage and minimize the seller expenses in particular from the need administration aspect. Thus I think, we now have 73 initiatives that individuals’ve identified in constant enhancement. I’d mentioned we are through 40% of the — really we are through about 32 of those. We are going to 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 lender, how will you do it better than you did today tomorrow? I really think you ought to continue steadily to see us search for techniques to be much more efficient and effective in the long run. So we’re — we’ve some methods to continue steadily to work with the trouble part.
John M. Turner — President and Ceo
And I would simply include, Matt, we have seen a complete great deal of modification and improvement throughout the last four to five months once we’ve accelerated the necessity to respond the way in which we provide our clients. And thus i believe it bodes well for continued process enhancement. With procedure improvement, we are getting greater effectiveness. We are positively focused on effectively managing expenses all the time, but especially in those times of some great doubt.