Question-and-Answer Session
Operator
Our first question comes from Joel Jeffrey. You may ask your question.
Joel Jeffrey - Keefe, Bruyette & Woods
Just a question. On the PCS business, you guys have lost money there in the last two quarters. I mean, is this basically tied to the M.L. Stern integration or is this something we should sort of expect going forward as you guys continue to build out the business?
Don Hultgren
I think it is a combination of a lot of things, Joel. Certainly as we continue to build out the business, there are costs associated with bringing the brokers on board. In terms of compensation, there are costs that are part of opening new branch offices. It is also a combination of a pretty tough retail market right now. I don't think we have seen the confidence come back to this market.
So I think if what we are hearing from all the economists that perhaps we are at the nadir here of the recession that we may begin to see more activity and we maybe seeing more activity on margin.
So essentially what we are doing is we are buying straw hats in the wintertime. The producers that we are bringing on board are not currently producing at their historic levels. So I think what we are doing is very much loading our gun and we are going to be ready when the time comes. It is very similar to what we did in the fixed income department. We almost tripled the size of the fixed income department when the yield curve was inverted.
Joel Jeffrey - Keefe, Bruyette & Woods
Then, looking at the bank, your total capital ratios now look like they are around 12%. I mean, you appear to be pretty well capitalized. Is this based on expectations for significant growth in the loan portfolio or are you building up in case of substantial deterioration or a combination of that?
John Holt
The answer would be it would be a combination. I think with the current regulatory environment that we are in that capital is king and making sure that we are not too close to the well-capitalized position and we have some cushion as part of it, but we also have enough capital in there for growth when we see opportunities to expand the loan book.
Joel Jeffrey - Keefe, Bruyette & Woods
I know you down streamed another $10 million down, how much of excess capital is there available at the broker currently?
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