They all have to sell here, plus our positioning as a local bank, and we have some real neat ideas about helping people move their accounts. It’s a pain in the neck to move your primary account, have some great ideas out there, they’re going be instituting. Again, the charters we have, we go and offer a teaser rate in the lower — in our smaller locations not cannibalized. So I think we’re in great shape in that regard. We’ve got to grow through it. We always do.Nathan Race Okay. Great. That’s helpful. And if I could just ask one more on the recently closed Rothchild (ph) acquisition. Any kind of guide rails that you guys can provide in terms of kind of the fee or expense impact or just kind of what you guys expect to have in terms of the pretax margin from those assets and team joining?David Stoehr Yeah.
Initially, expenses might be a little higher because as we transition them into ours, they’ve got some duplicate systems until we convert and the like. And so there will probably be some integration expenses. But that number is probably in the second quarter, somewhere in the $7 million, $8 million range with some of the transitional integration costs. And fees, obviously, will make a margin on that. We haven’t disclosed what the fees are yet. We just — I don’t necessarily want to give away what our pricing is on those assets that we acquired. But I think you can sort of ballpark it pretty well with that background.Nathan Race Yeah. Is the pretax margin just similar to what you guys currently earn on Great Lakes Advisers? Is that kind of a good proxy, Dave?David Stoehr Yeah.
I would think that their business — their asset managed business would be very similar to ours. So…Timothy Crane Again, with the front-end implementation expense, though, so a little bit of time to get there.David Stoehr Yeah. But we think great leverage of combining the systems. It was a nice add on to the assets under management and will give us leverage. So it might take us a couple of quarters to squeeze all of the integration stuff out. But we’re very excited about the acquisition. I’m very excited about the team that we’re bringing on and look forward to continue to have that be a growth area for our fee income.Nathan Race Got you. That’s great. I appreciate all the color. Thanks again, guys.David Stoehr Thank you.Operator Thank you.
Our next question comes from the line of Brody Preston of UBS. Your question, please, Brody.Brody Preston Yeah. Hey. Good morning, everyone. Thanks for taking my questions. Wanted to just follow-up on Nate’s line of questioning on the Rothchild. Just on the expenses, you said 7% to 8%, but some of that’s transitional. I guess could you help us think about as you — once those transitional costs are out of the run rate, what do you think the go-forward run rate specifically to Rothchild — how the Rothchild acquisition would be?Timothy Crane 4% to 6-ish, something like that. Again, we’re a whole two weeks into this in terms of our implementation activities. So…David Stoehr Yeah. It just depends on how we grow that business. And if we can grow that business more, there’s a little bit more expense that will go with it, but 5% plus or minus.Brody Preston Got it.
Okay. And then I just wanted to circle back on the swaps. I appreciate the detail on Slide 22. So I can kind of try to work through that myself. But I just want to ask if you could clarify for us like how much of the — in the 370 margin at quarter end, how much are the swaps negatively impacting that just in terms of basis points?Timothy Crane It’s about 7 basis points, and we would project since we added some in the first quarter that, that number would go up.David Stoehr Yeah, but 7 basis points for the full first quarter.Timothy Crane Correct.David Stoehr But that $370 million probably has…Timothy Crane 10 to 15.David Stoehr 10 basis points to 15 basis points on it. So [indiscernible].Brody Preston Yes. That was the number I was looking for.
Thank you for that. And then I just want to ask just one last one or about to — just on the NIBs. You guys aren’t unique in this sense that the NIBs have been pressured. But I do just want to ask, do you have a good sense for like when the tide kind of could stem there? Like are you kind of close to which you would think would be the level that your customers need to keep from an operational account perspective or are you expecting to see more headwinds on non-interest-bearing going forward?Timothy Crane Yeah. I mean I think it’s hard to say. I mean, again, we’re growing the amount of DDA deposits that are required at the bank to pay for services, and we’re adding commercial relationships. So is there going to be more migration? I don’t know.
We clearly think we’ve talked to most of our largest clients over the last several weeks, in some cases, more once. But it’s kind of hard to say. And I don’t think we’re an outlier. I think we’re kind of seeing what everybody else is seeing here.David Stoehr Yeah. I mean our gut would sort of say it’s stabilized, that there is an initial — people paid attention to their bank accounts all of a sudden and realized that there’s some interest-bearing monies they could move away or throw into MaxSafe or whatever. I think that we’ve probably seen the bulk of it. We actually think it’s probably stabilized. But your guess is as good of mine as far as what the industry may do. But we do think that they do need this base level of accounts there to pay for fees and operate their businesses.
And that’s our best guess right now is a stabilized, but..Brody Preston Got it. Okay. Yeah. I understand. That’s tough. And then the last one I had was just, Rich, I wanted to just follow up on the detail you gave on the CRE analysis, particularly as it relates to the 25% that are anticipated to either be paid off or require a short-term extension at prevailing rates. So I think the prevailing rates part is the key, right? Like obviously, you think that in the short term, these borrowers could support a higher rate.But it sounds like — just the way you phrased it that you don’t necessarily think these are credits that you would want on balance sheet from a longer-term extension standpoint. So could you help us think through what’s going on with that 25% or you say, yes, you could afford it, but we don’t necessarily think we want to keep you?Richard Murphy No. That’s not the case at all.
Those are really, I’d say, more construction loans, things like that, where we have financed and have a mini perm and long-term fixed rate loans typically are not where we want to put a lot of those assets, and there are better alternatives out in the market. So those — that’s just part of where we fit into the spectrum and CRE. So these are — that’s what we typically see all the time. Our runoff on CRE is substantial. So we would anticipate that, that will continue to be the case. And those — these are loans that are stabilized and ready to go, and we anticipate they’ll move out without a problem.Brody Preston Got it. So it’s really that last bucket, the 15% that require additional attention, where you’re spending more of your time?Richard Murphy Exactly.
That’s our focus right now are those that because of the market dynamics we talked about rising rates and pressured leasing activity that they’re not at our required debt service coverage, and so they’re going to have to figure out how to either through paydowns or additional collateral or something we’re going to have to figure out a better structure.Edward Wehmer You talked to a number of them already, haven’t you?Richard Murphy Yes. No, we’re already in agreement with — of those identified loans, we’ve already identified sort of the path forward for better than half of them. And generally speaking, because I think we are very thoughtful about client selection. We should be able to reach agreement on the great majority, if not all.Brody Preston Got it.
Thank you very much for that color. I appreciate you taking my questions.Edward Wehmer No problem.Richard Murphy Thank you.Operator Thank you. Our next question comes from Jeff Rulis of D.A. Davidson.Jeff Rulis Thanks, good morning. Just wanted to circle back. You talked about the optimism on the pipeline. Could you remind us what that actually is, as you entered the quarter versus where it was at the start of the year?David Stoehr Yes. Yes. We haven’t disclosed that, but generally, in the past, it’s been running in the last few quarters just for commercial and commercial real estate, not like the premium finance and the niche businesses there — are the residential real estate, but just the commercial and commercial real estate I think our growth pipelines have generally been in the $1.2 billion to $1.3 billion range.
And I think we’re more in the $1.5 billion to $1.6 billion.And now that doesn’t mean those are all going to close. That’s the pipeline and timing isn’t always linear. But the fact — I look at that more as a barometer as to how is loan demand shaping up. And so it has increased in the first quarter. Now whether that all comes through or not as — I’m not saying that that’s the case. But generally, our pipelines are a good indicator of demand and future closing. So up a little bit, but still relatively stable. It’s not like it went from $1.2 billion to $2.5 billion, but it inched up a little bit.Richard Murphy The other thing is that, as Dave pointed out, that’s the core CRE and C&I. That doesn’t include the leasing portfolio, which we’ve seen really good activity in so far this year.
