Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Damon Delmonte - Keefe, Bruyette & Woods.
Damon Delmonte - Keefe, Bruyette & Woods
Scott, I was wondering if you could quantify for us from a myelin perspective what we should look for, for intangible amortization with the branch acquisition closing this quarter.
Scott Kingsley
Yes we are not quite there yet in terms of the evaluation of that. It certainly depends on the characteristics of what we actually inherit, but I think what we have looked at and we may have talked about this before is we are range modeling the 15% to 20% of the entire intangible or 15% to 20% of the $75 million anticipated intangible would be something we would be amortizing. We will be determining that from a useful life standpoint over the course of the next 45 days or so. My anticipation would be the useful life that would probably be 8 to 10 years that we would be using an accelerated model for that.
Damon Delmonte - Keefe, Bruyette & Woods
Any guidance on how the acquisition will impact the margin?
Scott Kingsley
Probably not at this point; the reason I say that is that consistent with what we said before we do expect to inherit about $400 million of net liquidity. So, I think the margin determination will really be dependent on how fast we are successful at deploying that net $400 million into multiple classes of assets, because as you know, we certainly won’t be deploying them into loans or our expectation wouldn’t be that we would deploy them into loans over the next one year.
I think given some of the market volatility we certainly don’t want to rush into investment decisions, so I think we will be pretty disciplined in how we redeploy that.
Damon Delmonte - Keefe, Bruyette & Woods
Lastly on the branch acquisition any estimated fee income from these deposits? You know like do you have a perspective of what they were generating under Citizens?
Scott Kingsley
I think actually it will be very consistent on sort of a ratio basis to what you see to our existing portfolio.
Damon Delmonte - Keefe, Bruyette & Woods
Any comment on the TARP plan?
Scott Kingsley
Well let’s hope it works.
Damon Delmonte - Keefe, Bruyette & Woods
How about specific to you guys?
Scott Kingsley
We are looking at it. I mean certainly 5% tier 1 capital is advantageous. It is something that we are looking at the opportunity to participate in whether there are opportunities that would be accretive to shareholder value over the next three to five years if we did participate. I do have some concerns about the qualitative implications of smaller banks like us participating in a program that is deemed to be bail our or corporate welfare or whatever words you want to use to describe it. I do have some qualitative concerns with it, but if it is something that we can make use of productively to create shareholder value over the next three to five years. As I said that is something that we’re looking at right now in terms of what those options are.
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