-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, M4ukNRAGq9Ao+I5XuaA/N6D3c2F1SxTBCeIUL5MsyoF2k0apX6wdSOcwrP/Z28qt 0zKqLx9WV5YomzBoomKXAw== /in/edgar/work/20000814/0000950131-00-004855/0000950131-00-004855.txt : 20000921 0000950131-00-004855.hdr.sgml : 20000921 ACCESSION NUMBER: 0000950131-00-004855 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20000630 FILED AS OF DATE: 20000814 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NORTH CENTRAL BANCSHARES INC CENTRAL INDEX KEY: 0001005188 STANDARD INDUSTRIAL CLASSIFICATION: [6035 ] IRS NUMBER: 421449849 STATE OF INCORPORATION: IA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-27672 FILM NUMBER: 695572 BUSINESS ADDRESS: STREET 1: 825 CENTRAL AVE STREET 2: C/O FIRST FED SAVINGS BANK OF FT DODGE CITY: FORT DODGE STATE: I0 ZIP: 50501 BUSINESS PHONE: 5155767531 MAIL ADDRESS: STREET 1: 825 CENTRAL AVENUE CITY: FORT DODGE STATE: IA ZIP: 50501 10-Q 1 0001.txt FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ---------------------------------------- FORM 10-Q [Mark One] [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2000 [_] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission File Number 0-27672 NORTH CENTRAL BANCSHARES, INC. (Exact Name of Registrant as Specified in Its Charter) Iowa 42-1449849 -------------------------------------------------------------------- (State or Other Jurisdiction of (I. R. S. Employer Incorporation or Organization) Identification Number) 825 Central Avenue Fort Dodge, Iowa 50501 -------------------------------------------------- (Address of Principal Executive Offices) Registrant's Telephone Number, Including Area Code:#(515)576-7531 None - -------------------------------------------------------------------------------- Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ----- ----- Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Class Outstanding at August 7, 2000 - -------------------------------------------------------------------------------- Common Stock, $.01 par value 2,017,242 NORTH CENTRAL BANCSHARES, INC. INDEX
Page Part I. Financial Information Item 1. Consolidated Condensed Financial Statements (Unaudited) 1 to 3 Consolidated Condensed Statements of Financial Condition at June 30, 2000 (Unaudited) and December 31, 1999 1 Consolidated Condensed Statements of Income for the three and six months ended June 30, 2000 and 1999 (Unaudited) 2 Consolidated Condensed Statements of Cash Flows for the six months ended June 30, 2000 and 1999 (Unaudited) 3 Item 1. Notes to Consolidated Condensed Financial Statements 4 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 5 to 11 Item 3. Quantitative and Qualitative Disclosures About Market Risk 11 Part II. Other Information 12 to 14 Items 1 through 6 12 & 13 Signatures 14 Exhibits
PART 1. FINANCIAL INFORMATION ITEM 1. NORTH CENTRAL BANCSHARES, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION
June 30, December 31, ASSETS 2000 1999 ------------ ------------- (Unaudited) Cash and due from banks: Interest-bearing $ 8,953,337 $ 4,127,153 Noninterest-bearing 2,471,759 8,541,525 Securities available-for-sale 44,902,832 49,692,857 Loans receivable, net 307,350,210 286,759,101 Loans held for sale 547,881 335,564 Accrued interest receivable 2,122,152 2,082,598 Foreclosed real estate 309,292 503,150 Premises and equipment, net 6,200,726 5,356,097 Rental real estate 1,801,575 1,846,134 Title plant 925,256 925,256 Goodwill 5,679,235 5,915,381 Deferred taxes 959,413 921,057 Prepaid expenses and other assets 592,009 426,772 ------------ ------------ Total assets $382,815,677 $367,432,645 ============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES Deposits $265,841,506 $271,030,791 Borrowed funds 78,652,488 55,715,289 Advances from borrowers for taxes and insurance 1,131,036 1,204,025 Dividend payable 254,030 226,174 Income taxes payable 39,927 74,214 Accrued expenses and other liabilities 1,203,857 1,055,228 ------------ ------------ Total liabilities 347,122,844 329,305,721 ------------ ------------ COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Preferred stock ($.01 par value, authorized 3,000,000 shares, issued and outstanding none) -- -- Common stock ($.01 par value, authorized 15,500,000 shares; issued and outstanding 4,011,057) 40,111 40,111 Additional paid-in capital 38,319,937 38,278,872 Retained earnings, substantially restricted 31,812,366 30,290,488 Accumulated other comprehensive (loss) (1,047,943) (921,138) Less cost of treasury stock, 2000 1,993,815 shares; 1999 1,749,315 shares (32,696,488) (28,735,925) Unearned shares, employee stock ownership plan (735,150) (825,484) ----------- ------------ Total stockholders' equity 35,692,833 38,126,924 ------------ ------------ Total liabilities and stockholders' equity $382,815,677 $367,432,645 ============ ============
See Notes to Consolidated Condensed Financial Statements. -1- NORTH CENTRAL BANCSHARES, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
Three Months Ended Six Months Ended June 30, June 30 2000 1999 2000 1999 ---------- ---------- ----------- ----------- Interest income: Loans receivable $5,972,166 $5,166,931 $11,709,072 $10,266,521 Securities and cash deposits 759,024 837,791 1,552,379 1,704,969 ---------- ---------- ----------- ----------- 6,731,190 6,004,722 13,261,451 11,971,490 ---------- ---------- ----------- ----------- Interest expense: Deposits 2,998,314 2,685,510 5,949,889 5,351,290 Borrowed funds 1,032,173 549,719 1,866,529 1,083,454 ---------- ---------- ----------- ----------- 4,030,487 3,235,229 7,816,418 6,434,744 ---------- ---------- ----------- ----------- Net Interest Income 2,700,703 2,769,493 5,445,033 5,536,746 Provision for loan losses 30,000 30,000 60,000 60,000 ---------- ---------- ----------- ----------- Net interest income after provision for loan losses 2,670,703 2,739,493 5,385,033 5,476,746 ---------- ---------- ----------- ----------- Noninterest income: Fees and service charges 380,361 334,015 734,187 695,353 Abstract fees 353,976 382,683 657,750 726,156 Mortgage banking fees 34,026 106,088 72,590 195,590 Gain on sale of securities available for sale, net - - 31,989 - - 31,989 Other income 183,412 200,106 442,532 326,042 ---------- ---------- ----------- ----------- Total noninterest income 951,775 1,054,881 1,907,059 1,975,130 ---------- ---------- ----------- ----------- Noninterest expense: Salaries and employee benefits 992,199 1,006,980 2,035,014 1,979,984 Premises and equipment 244,534 215,630 481,455 422,964 Data processing 116,107 149,183 229,536 297,115 SAIF deposit insurance premiums 14,109 36,233 27,934 73,648 Goodwill amortization 118,072 118,075 236,145 236,145 Other expenses 624,914 631,202 1,212,544 1,201,756 ---------- ---------- ----------- ----------- Total noninterest expense 2,109,935 2,157,303 4,222,628 4,211,612 ---------- ---------- ----------- ----------- Income before income taxes 1,512,543 1,637,071 3,069,464 3,240,264 Provision for income taxes 507,780 563,126 1,057,597 1,108,627 ---------- ---------- ----------- ----------- Net Income $1,004,763 $1,073,945 $ 2,011,867 $ 2,131,637 ========== ========== =========== =========== Basic earnings per common share $ 0.51 $ 0.39 $ 0.99 $ 0.76 ========== ========== =========== =========== Earnings per common share- assuming dilution $ 0.50 $ 0.38 $ 0.98 $ 0.75 ========== ========== =========== =========== Dividends declared per common share $ 0.125 $ 0.10 $ 0.25 $ 0.20 ========== ========== =========== =========== Comprehensive income $1,141,328 $ 512,458 $ 1,885,062 $ 1,390,128 ========== ========== =========== ===========
See Notes to Consolidated Condensed Financial Statements. -2- NORTH CENTRAL BANCSHARES, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
Six Months Ended June 30, 2000 1999 ------------ ------------ CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 2,011,867 $ 2,131,637 Adjustments to reconcile net income to net cash provided by operating activities: Provision for loan losses 60,000 60,000 Depreciation 283,842 255,848 Amortization and accretion 289,019 249,187 Deferred taxes 37,994 (91,514) Effect of contribution to employee stock ownership plan 136,808 168,682 (Gain) on sale of foreclosed real estate and loans, net (26,995) (19,220) (Gain) on sale of securities available for sale - - (31,989) Loss on impairment and disposal of equipment and premises, net 29,820 14,061 Proceeds from sales of loans held for sale 4,471,928 12,204,081 Originations of loans held for sale (4,684,245) (11,765,180) Change in assets and liabilities: Accrued interest receivable (39,554) (97,836) Prepaid expenses and other assets (165,237) (166,578) Income taxes payable (34,287) (65,333) Accrued expenses and other liabilities 148,629 (66,589) ------------ ------------ Net cash provided by operating activities 2,519,589 2,779,257 ------------ ------------ CASH FLOWS FROM INVESTING ACTIVITIES Net (increase) decrease in loans (9,874,897) 8,609,698 Purchase of loans (10,556,370) (19,044,921) Proceeds from sales of securities available-for-sale - - 146,625 Purchase of securities available-for-sale (896,600) (13,657,719) Proceeds from maturities of securities available-for-sale 5,433,590 11,170,300 Purchase of premises and equipment and rental real estate (1,113,912) (1,678,312) Proceeds from sale of equipment 180 237 Other (1,982) (626) ------------ ------------ Net cash (used in) investing activities (17,009,991) (14,454,718) ------------ ------------ CASH FLOWS FROM FINANCING ACTIVITIES Net increase (decrease) in deposits (5,189,285) 10,056,994 (Decrease) in advances from borrowers for taxes and insurance (72,989) (4,597) Net change in short-term borrowings 17,000,000 3,500,000 Proceeds from other borrowed funds 15,000,000 1,000,000 Payments of other borrowings (9,062,801) (3,059,764) Purchase of treasury stock (3,960,563) (5,503,372) Issuance of treasury stock (5,409) - - Dividends paid (462,133) (512,294) ------------ ------------ Net cash provided by financing activities 13,246,820 5,476,967 ------------ ------------ Net (decrease) in cash (1,243,582) (6,198,494) CASH Beginning 12,668,678 15,636,876 ------------ ------------ Ending $ 11,425,096 $ 9,438,382 ============ ============ SUPPLEMENTAL SCHEDULE OF CASH FLOW INFORMATION Cash payments for: Interest paid to depositors $ 5,900,010 $ 5,441,405 Interest paid on borrowings 1,816,408 1,083,642 Income taxes 1,053,890 1,265,475
-3- ITEM 1. NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (UNAUDITED) NORTH CENTRAL BANCSHARES, INC. AND SUBSIDIARIES 1. SIGNIFICANT ACCOUNTING POLICIES The consolidated condensed financial statements for the three and six month periods ended June 30, 2000 and 1999 are unaudited. In the opinion of the management of North Central Bancshares, Inc. (the "Company" or the "Registrant") these financial statements reflect all adjustments, consisting only of normal recurring accruals, necessary to present fairly these consolidated financial statements. The results of operations for the interim periods are not necessarily indicative of results which may be expected for an entire year. Certain information and footnote disclosure normally included in complete financial statements prepared in accordance with generally accepted accounting principles have been omitted in accordance with the requirements for interim financial statements. The financial statements and notes thereto should be read in conjunction with the Company's 1999 Annual Report on Form 10-K. The consolidated condensed financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. 2. EARNINGS PER SHARE The earnings per share amounts were computed using the weighted average number of shares outstanding during the periods presented. In accordance with Statement of Position No. 93-6, Employers' Accounting for Employee Stock Ownership Plans, issued by the American Institute of Certified Public Accountants, shares owned by First Federal Savings Bank of Iowa's Employee Stock Ownership Plan that have not been committed to be released are not considered to be outstanding for the purpose of computing earnings per share. For the three month period ended June 30, 2000, the weighted average number of shares outstanding for basic and diluted earnings per share computation were 1,966,800 and 1,995,014, respectively. For the six month period ended June 30, 2000, the weighted average number of shares outstanding for basic and diluted earnings per share computation were 2,028,718 and 2,061,402, respectively. For the three month period ended June 30, 1999, the weighted average number of shares outstanding for basic and diluted earnings per share computation were 2,728,666 and 2,791,482, respectively. For the six month period ended June 30, 1999, the weighted average number of shares outstanding for basic and diluted earnings per share computation were 2,788,780 and 2,848,838, respectively. 3. DIVIDENDS On May 26, 2000, the Company declared a cash dividend on its common stock, payable on July 6, 2000 to stockholders of record as of June 16, 2000, equal to $0.125 per share. -4- ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS EXPLANATORY NOTE This Quarterly Report on Form 10-Q contains forward-looking statements consisting of estimates with respect to the financial condition, results of operations and business of the Company that are subject to various factors which could cause actual results to differ materially from these estimates. These factors include changes in general, economic, market, legislative and regulatory conditions, and the development of an interest rate environment that adversely affects the interest rate spread or other income anticipated from the Company's operations and investments. The Company's actual results may differ from the results discussed in the forward looking statements. FINANCIAL CONDITION Total assets increased $15.4 million, or 4.2%, to $382.8 million at June 30, 2000 compared to $367.4 million at December 31, 1999. Noninterest bearing cash decreased $6.1 million, or 71.1%, due to customer focused preparations for the Year 2000 which resulted in increases in cash as of December 31, 1999. Interest bearing cash increased $4.8 million, or 116.9%, primarily due to seasonal fluctuations. Securities available for sale decreased $4.8 million, or 9.6%, primarily due to $5.4 million of maturities and calls and decreases in fair market value of $203,000, offset in part by purchases of $897,000 of such securities. Total loans receivable, net, increased by $20.6 million to $307.4 million from December 31, 1999, due primarily to originations of $20.4 million of first mortgage loans secured primarily by one-to four-family residences, purchases of $10.6 million of first mortgage loans secured primarily by one-to four-family, multi-family residences and commercial real estate and originations of $11.5 million of second mortgage loans. These originations and purchases were offset in part by payments and prepayments of loans of approximately $26.3 million. Total deposits decreased $5.2 million, or 1.9%, from $271.0 million at December 31, 1999 to $265.8 million at June 30, 2000, reflecting decreases primarily in certificates of deposit accounts, offset in part by increases in the deposits of certain public funds. Other borrowings, primarily Federal Home Loan Bank ("FHLB") advances, increased by $22.9 million to $78.7 million at June 30, 2000 from $55.7 million at December 31, 1999. Total stockholders' equity decreased $2.4 million, to $35.7 million at June 30, 2000 from $38.1 million at December 31, 1999. See "Capital." CAPITAL The Company's total stockholders' equity decreased by $2.4 million to $35.7 million at June 30, 2000 from $38.1 million at December 31, 1999, primarily due to stock repurchases and dividends declared, which were offset in part by earnings. The changes in stockholders' equity were also due to an increase in the accumulated other comprehensive losses and a decrease in the unearned shares from First Federal Savings Bank of Iowa's Employee Stock Ownership Plan (the "ESOP") to $735,000 at June 30, 2000 from $825,000 at December 31, 1999. The decrease in unearned shares resulted from the release of shares by the ESOP to employees of First Federal Savings Bank of Iowa (the "Bank"). -5- The Office of Thrift Supervision (the "OTS") requires that the Bank meet minimum tangible, leverage (core) and risk-based capital requirements. As of June 30, 2000, the Bank exceeded all of its regulatory capital requirements. The Bank's required, actual and excess capital levels as of June 30, 2000 were as follows:
Amount Percentage of Assets -------- --------------------- (dollars in thousands) Tangible capital: Capital level $28,089 7.46% Less Requirement 5,651 1.50% ------- ----- Excess $22,438 5.96% ======= ===== Core capital: Capital level $28,089 7.46% Less Requirement 15,069 4.00% ------- ----- Excess $13,020 3.46% ======= ===== Risk-based capital: Capital level $30,761 14.39% Less Requirement 17,096 8.00% ------- ----- Excess $13,665 6.39% ======= =====
LIQUIDITY The Company's primary sources of funds are cash provided by operating activities (including net income), certain financing activities (including increases in deposits and proceeds from borrowings) and certain investing activities (including principal payments on loans and maturities and calls of securities). During the first six months of 2000 and 1999, principal payments and repayments on loans totalled $26.3 million and $40.5 million, respectively. The net increase in deposits during the first six months of 1999 totalled $10.1 million. The proceeds from borrowed funds during the six months ended June 30, 2000 and 1999 totalled $15.0 million and $1.0 million, respectively. The net change in short-term borrowings during the six months ended June 30, 2000 and 1999 totalled $17.0 million and $3.5 million, respectively. During the first six months of 2000 and 1999, the proceeds from the maturities, calls and sales of securities totalled $5.4 million and $11.3 million, respectively. Cash provided from operating activities during the first six months of 2000 and 1999 totalled $2.5 million and $2.8 million, respectively, of which $2.0 million and $2.1 million, respectively, represented net income of the Company. The Company's primary use of funds is cash used to originate and purchase loans, purchase of securities available for sale, repayment of borrowed funds and other financing activities (including decreases in deposits). During the first six months of 2000 and 1999, the Company's gross purchases and origination of loans totalled $47.5 million and $52.5 million, respectively. The purchase of securities available for sale for the six months ended June 30, 2000 and 1999 totalled $897,000 and $13.7 million, respectively. The net decrease in deposits during the first six months of 2000 totalled $5.2 million. The repayment of borrowed funds during the first six months of 2000 and 1999 totalled $9.1 million and $3.1 million, respectively. For additional information about cash flows from the Company's operating, financing and investing activities, see "Statements of Cash Flows in the Condensed Consolidated Financial Statements." The Bank is required to maintain an average daily balance of liquid assets (cash, certain time deposits, bankers' acceptances, specified United States Government, state or federal agency obligations, shares of certain mutual funds and certain corporate debt securities and commercial paper) in each calendar quarter of not less than four percent of either (1) the liquidity base at the end of the preceding calendar quarter, or (2) the average daily balance of the liquidity base during the preceding quarter equal to a specified percentage of its net withdrawable deposit accounts plus short-term borrowings. This liquidity requirement may be changed from time to time by the OTS to any amount within the range of 4.0% to 10.0%, depending upon economic conditions and the savings flows of member institutions. The liquidity requirement is currently 4.0%. Monetary penalties may be imposed for failure to meet these liquidity requirements. At June 30, 2000, the Bank's liquidity position was $32.0 million, or 10.5%, of liquid assets, compared to $31.7 million, or 10.8%, at December 31, 1999. Stockholders' equity totaled $35.7 million at June 30, 2000 compared to $38.1 million at December 31, 1999, reflecting the Company's earnings, stock repurchases, the amortization of the unallocated portion of shares held -6- by the ESOP, dividends declared on common stock and the change in the accumulated other comprehensive loss. The Company repurchased 40,000 shares of common stock during the three months ended June 30, 2000 at an average price of $14.58. On April 6, 2000, the Company paid a quarterly cash dividend of $0.125 per share on common stock outstanding as of the close of business on March 16, 2000, aggregating $257,000. On May 26, 2000, the Company declared a quarterly cash dividend of $0.125 per share payable on July 6, 2000 to shareholders of record as of the close of business on June 16, 2000, aggregating $254,000. Interest Income. Interest income increased by $726,000 to $6.7 million for the three months ended June 30, 2000 compared to $6.0 million for the three months ended June 30, 1999. The increase in interest income was primarily due to an increase in the average balance of interest earning assets and the average yield on average assets. The average balance of interest earning assets increased $35.8 million to $355.8 million for the three months ended June 30, 2000 from $320.1 million for the three months ended June 30, 1999. This increase was primarily due to first mortgage and consumer loans, offset by a decrease in securities available for sale and interest earning cash. The increase in the average balance of loans generally reflects an increase over the past twelve months in originations of first mortgage loans, second mortgage loans and purchases of first mortgage loans secured primarily by multi-family, one-to four-family residential loans and commercial real estate, which were offset in part by payments, sales and prepayments of loans. See "Financial Condition." The decrease in securities available for sale and interest bearing cash reflects funds used for asset growth. The yield on interest earning assets increased to 7.57% for the three months ended June 30, 2000 from 7.51% for the three months ended June 30, 1999. The increase in average yields was due primarily to an increase in the average balance of loans as compared to the average balance of interest bearing assets and an increase in the average yield on interest bearing cash, offset in part by a decrease in the average yield on loans. The average yield on loans decreased from 7.92% for the three months ended June 30, 1999 to 7.85% for the three months ended June 30, 2000. The average yield on interest earning cash increased to 5.95% for the three months ended June 30, 2000 from 4.47% for the three months ended June 30, 1999. The average yield on interest earning cash reflects an increase in short term interest rates as of June 30, 2000 as compared to June 30, 1999. Interest income increased by $1.3 million to $13.3 million for the six months ended June 30, 2000 compared to $12.0 million for the six months ended June 30, 1999. The increase in interest income was primarily due to an increase in the average balance of interest earning assets and the average yield on average assets. The average balance of interest earning assets increased $33.9 million to $352.3 million for the six months ended June 30, 2000 from $318.4 million for the six months ended June 30, 1999. This increase was primarily due to first mortgage and consumer loans, offset by a decrease in securities available for sale and interest earning cash. The increase in the average balance of loans generally reflects an increase over the past twelve months in originations of first mortgage loans, second mortgage loans and purchases of first mortgage loans secured primarily by multi-family, one-to four-family residential loans and commercial real estate, which were offset in part by payments, sales and prepayments of loans. See "Financial Condition." The decrease in securities available for sale and interest bearing cash reflects funds used for asset growth. The average yield on interest earning assets increased to 7.54% for the six months ended June 30, 2000 from 7.53% for the six months ended June 30, 1999. The increase in average yield was due primarily to an increase in the average balance of loans as compared to the average balance of interest bearing assets and an increase in the average yield on interest bearing cash, offset in part by a decrease in the average yield on loans. The average yield on loans decreased from 7.98% for the six months ended June 30, 1999 to 7.83% for the six months ended June 30, 2000. The average yield on interest earning cash increased to 5.65% for the six months ended June 30, 2000 from 4.55% for the six months ended June 30, 1999. The average yield on interest earning cash reflects an increase in short term interest rates as of June 30, 2000 as compared to June 30, 1999. Interest Expense. Interest expense increased by $795,000 to $4.0 million for the three months ended June 30, 2000 compared to $3.2 million for the three months ended June 30, 1999. The increase in interest expense was primarily due to an increase in the average balance of interest bearing liabilities and an increase in the average cost of interest bearing liabilities. The average balance of interest bearing liabilities increased $44.1 million to $329.0 million for the three months ended June 30, 2000 from $284.9 million for the three months ended June 30, 1999. This increase was primarily due to certificates of deposit and borrowed funds, offset by a decrease in NOW, money market and savings accounts. The increase in certificates of deposit was primarily due to an increase in the -7- RESULTS OF OPERATIONS (Continued) deposits of public funds, while the increase in borrowed funds was due to the borrowing of funds in part to fund the corresponding asset growth and stock repurchases. The average cost of interest bearing liabilities increased to 4.90% for the three months ended June 30, 2000 from 4.54% for the three months ended June 30, 1999. The increase in the average cost of interest bearing liabilities was due primarily to an increase in the average cost of certificates of deposits and borrowed funds resulting from the increase in market interest rates. Interest expense increased by $1.4 million to $7.8 million for the six months ended June 30, 2000 compared to $6.4 million for the six months ended June 30, 1999. The increase in interest expense was primarily due to an increase in the average balance of interest bearing liabilities and an increase in the average cost of interest bearing liabilities. The average balance of interest bearing liabilities increased $42.2 million to $324.2 million for the six months ended June 30, 2000 from $282.0 million for the six months ended June 30, 1999. This increase was primarily due to increases in certificates of deposit and borrowed funds, offset in part by decreases in NOW, money market and savings accounts The increase in certificates of deposit was primarily due to an increase in the deposits of public funds. The increase in borrowed funds was due to the borrowing of funds in part to fund the corresponding asset growth and stock repurchases. The average cost of interest bearing liabilities increased to 4.82% for the six months ended June 30, 2000 from 4.59% for the six months ended June 30, 1999. The increase in the average cost of interest bearing liabilities was due primarily to an increase in the average cost of certificates of deposits and borrowed funds resulting from the increase in market interest rates. Net Interest Income. Net interest income before the provision for loan losses decreased by $69,000 to $2,701,000 for the three months ended June 30, 2000 from $2,769,000 for the three months ended June 30, 1999. The decrease is primarily due to a decrease in the interest rate spread and a decrease in the ratio of the average interest earning assets to the average interest bearing liabilities. The interest rate spread (i.e., the difference in the average yield on assets and average cost of liabilities) decreased to 2.67% for the three months ended June 30, 2000 from 2.97% for the three months ended June 30, 1999. Net interest income before the provision for loan losses decreased by $92,000 to $5,445,000 for the six months ended June 30, 2000 from $5,537,000 for the six months ended June 30, 1999. The decrease is primarily due to a decrease in the interest rate spread and a decrease in the ratio of the average interest earning assets to the average interest bearing liabilities. The interest rate spread decreased to 2.72% for the six months ended June 30, 2000 from 2.94% for the six months ended June 30, 1999. The following table sets forth certain information relating to the Company's average balance sheets and reflects the average yield on assets and average cost of liabilities for the three and six month periods ended June 30, 2000 and 1999, respectively. -8- RESULTS OF OPERATIONS (Continued)
For the Three Months Ended June 30, ------------------------------------------------------------------ 2000 1999 ------------------------------------------------------------------ Average Average Average Average Balance Interest Yield/Cost Balance Interest Yield/Cost -------- -------- ---------- --------- -------- ---------- (Dollars in thousands) Assets: Interest-earning assets: Loans.................................. $304,360 $5,972 7.85% $261,015 $5,167 7.92% Securities available for sale.......... 47,341 697 5.89 51,726 755 5.86 Interest bearing cash.................. 4,146 62 5.95 7,317 82 4.47 -------- ------ ------ -------- ------ ------ Total interest-earning assets........ 355,847 $6,731 7.57% 320,058 $6,004 7.51% ------ ------ ------ ------ Noninterest-earning assets............... 18,201 16,877 -------- -------- Total assets......................... $374,048 $336,935 ======== ======== Liabilities and Equity: Interest-bearing liabilities: NOW and money market savings........... $ 46,324 $ 259 2.25% $ 52,324 $ 277 2.12% Passbook savings....................... 25,783 129 2.01 27,320 137 2.01 Certificates of deposit................ 189,009 2,610 5.54 166,811 2,271 5.46 Borrowed funds......................... 67,904 1,032 6.01 38,485 550 5.65 -------- ------ ------ -------- ------ ------ Total interest-bearing liabilities....... 329,020 $4,030 4.90% 284,940 $3,235 4.54% ------ ------ ------ ------ Noninterest-bearing liabilities.......... 9,365 5,269 -------- -------- Total liabilities.................... 338,385 290,209 Equity................................... 35,663 46,726 -------- -------- Total liabilities and equity......... $374,048 $336,935 ======== ======== Net interest income......................... $2,701 $2,769 ====== ====== Net interest rate spread.................... 2.67% 2.97% ====== ====== Net interest margin......................... 3.04% 3.46% ====== ====== Ratio of average interest-earning assets to average interest-bearing liabilities..... 108.15% 112.32% ====== ======
For the Six Months Ended June 30, ------------------------------------------------------------------ 2000 1999 ------------------------------------------------------------------ Average Average Average Average Balance Interest Yield/Cost Balance Interest Yield/Cost -------- -------- ---------- --------- -------- ---------- (Dollars in thousands) Assets: Interest-earning assets: Loans.................................. $299,221 $11,709 7.83% $257,642 $10,267 7.98% Securities available for sale.......... 48,860 1,433 5.87 51,077 1,486 5.86 Interest bearing cash.................. 4,238 119 5.65 9,708 219 4.55 -------- ------- ------ -------- ------- ------ Total interest-earning assets........ 352,319 $13,261 7.54% 318,427 $11,972 7.53% ------- ------ ------- ------ Noninterest-earning assets............... 18,317 17,154 -------- -------- Total assets......................... $370,636 $335,581 ======== ======== Liabilities and Equity: Interest-bearing liabilities: NOW and money market savings........... $ 46,537 507 2.19% $ 51,574 $ 553 2.16% Passbook savings....................... 25,868 259 2.01 26,945 285 2.14 Certificates of deposit................ 189,374 5,184 5.49 165,192 4,513 5.51 Borrowed funds......................... 62,428 1,866 5.91 38,317 1,084 5.62 -------- ------- ------ -------- ------- ------ Total interest-bearing liabilities....... 324,207 $ 7,816 4.82% 282,028 $ 6,435 4.59% ------- ------ ------- ------ Noninterest-bearing liabilities.......... 10,186 5,896 -------- -------- Total liabilities.................... 334,393 287,924 Equity................................... 36,243 47,657 -------- -------- Total liabilities and equity......... $370,636 $335,581 ======== ======== Net interest income......................... $ 5,445 $ 5,537 ======= ======= Net interest rate spread.................... 2.72% 2.94% ====== ====== Net interest margin......................... 3.09% 3.48% ====== ====== Ratio of average interest-earning assets to average interest-bearing liabilities..... 108.67% 112.91% ====== ======
-9- RESULTS OF OPERATIONS (Continued) Provision for Loan Losses. The Company's provision for loan losses was $30,000 and $60,000 for each of the three and six months ended June 30, 2000 and 1999, respectively. The Company establishes provisions for loan losses, which are charged to operations, in order to maintain the allowance for loan losses at a level which is deemed to be appropriate based upon an assessment of prior loss experience, industry standards, past due loans, economic conditions, the volume and type of loans in the Bank's portfolio, which includes a significant amount of multi-family and commercial real estate loans, substantially all of which are purchased and are collateralized by properties located outside of the Bank's market area, and other factors related to the collectibility of the Bank's loan portfolio. The net charge offs were $37,000 for the six months ended June 30, 2000 as compared to net charge offs of $4,000 for the six months ended June 30, 1999. The resulting allowance for loan losses was $2.8 million at June 30, 2000 as compared to $2.8 million at December 31, 1999 and $2.7 million at June 30, 1999. The level of nonperforming loans increased to $837,000 at June 30, 2000 from $213,000 at December 31, 1999 and from $162,000 at June 30, 1999. The increase in the nonperforming loans is due primarily to one commercial real estate mortgage loan in the amount of $489,000. Management believes that the allowance for loan losses is adequate. While management estimates loan losses using the best available information, such as independent appraisals for significant collateral properties, no assurance can be made that future adjustments to the allowance will not be necessary based on changes in economic and real estate market conditions, further information obtained regarding known problem loans, identification of additional problem loans, and other factors, both within and outside of management's control. Noninterest Income. Total noninterest income decreased by $103,000 to $952,000 for the three months ended June 30, 2000 from $1,055,000 for the three months ended June 30, 1999. The decrease is due to decreases in other income, abstract fees and mortgage banking income, offset in part by increases in fees and service charges. Other income decreased $17,000, primarily due to decreases in revenues from the sale of insurance and the impairment of certain premises, offset in part by increases in revenues from the sale of annuities and mutual funds. Abstract fees decreased $29,000 due to decreased sales volume, which resulted in part from a general decline in real estate activity. Mortgage banking income decreased by $72,000 due to a decrease in loan originations. Fees and service charges increased $46,000, primarily due to increases in overdraft fees and loan prepayment fees. Noninterest income for the three months ended June 30, 1999 reflects gains on the sales of securities available for sale of $32,000, while the three months ended June 30, 2000 does not include any gains on the sale of securities available for sale. Total noninterest income decreased by $68,000 to $1,907,000 for the six months ended June 30, 2000 from $1,975,000 for the six months ended June 30, 1999. The decrease is due to decreases in abstract fees and mortgage banking income, offset in part by increases in fees and service charges and other income. Abstract fees decreased $68,000 due to decreased sales volume, which resulted in part from a general decline in real estate activity. Mortgage banking income decreased by $123,000 due to a decrease in loan originations. Fees and service charges increased $39,000, primarily due to increases in overdraft fees and monthly services charges on checking accounts, offset in part by decreases in loan prepayment fees. Other income increased by $116,000, primarily due to increases in annuity sales. Noninterest income for the six months ended June 30, 1999 reflects gains on the sales of securities available for sale of $32,000, while the six months ended June 30, 2000 does not include any gains on the sale of securities available for sale. Noninterest Expense. Total noninterest expense decreased by $47,000 to $2,110,000 for the three months ended June 30, 2000 from $2,157,000 for the three months ended June 30, 1999. The decrease is primarily due to decreases in data processing and Savings Association Insurance Fund ("SAIF") deposit insurance premiums, offset in part by increases in premises and equipment. The decreases in data processing expense were due primarily to the Bank signing a new multi-year data processing contract in 1999 and costs associated with the Year 2000 issues incurred in 1999. The decrease in the SAIF deposit insurance premium was primarily due to lower SAIF deposit premium rates. The increases in premises and equipment were primarily due to an increase in depreciation expense relating primarily to the opening of a branch office in Perry, Iowa and updating of computer equipment and normal cost increases. The Company's efficiency ratio for the three months ended June 30, 2000 and 1999 were 57.77% and 56.41%, respectively. The Company's ratio of noninterest expense to average assets for the three months ended June 30, 2000 and 1999 were 2.26% and 2.56%, respectively. Total noninterest expense increased by $11,000 to $4,223,000 for the six months ended June 30, 2000 from $4,212,000 for the six months ended June 30, 1999. The increase is primarily due to increases in salaries and employee benefits, premises and equipment, offset in part by decreases in data processing and SAIF deposit insurance premiums. The increase in salaries and employee benefits was primarily a result of normal salary increases, increased personnel due to the opening of a branch in Perry, Iowa and increased health insurance costs, offset by decreases in expenses associated with the ESOP. -10- RESULTS OF OPERATIONS (Continued) The increases in premises and equipment were primarily due to an increase in depreciation expense relating primarily to the opening of a branch office in Perry, Iowa and normal cost increases. The decreases in data processing expense were due primarily to the Bank signing a new multi-year data processing contract in 1999 and costs associated with the Year 2000 issues incurred in 1999. The decrease in the SAIF deposit insurance premium was primarily due to lower SAIF deposit premium rates. The Company's efficiency ratio for the six months ended June 30, 2000 and 1999 were 57.43% and 56.07%, respectively. The Company's ratio of noninterest expense to average assets for the six months ended June 30, 2000 and 1999 were 2.28% and 2.51%, respectively. Income Taxes. Income taxes decreased by $55,000 to $508,000 for the three months ended June 30, 2000 as compared to $563,000 for the three months ended June 30, 1999, primarily due to a decrease in net income before income taxes. Income taxes decreased by $51,000 to $1,058,000 for the six months ended June 30, 2000 as compared to $1,109,000 for the six months ended June 30, 1999, primarily due to a decrease in net income before income taxes. Net Income. Net income decreased by $69,000 to $1,005,000 for the three months ended June 30, 2000, as compared to $1,074,000 for the same period in 1999. Net income decreased by $120,000 to $2,012,000 for the six months ended June 30, 2000, as compared to $2,132,000 for the same period in 1999. ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK In management's opinion, there has not been a material change in market risk from December 31, 1999 as reported in Item 7A of the Annual Report on Form 10-K. -11- PART II. OTHER INFORMATION Item 1. Legal Proceedings Not applicable Item 2. Changes in Securities and Use of Proceeds Not applicable Item 3. Defaults Upon Senior Securities Not applicable Item 4. Submission of Matters to a Vote of Security Holders The Company held its 2000 Annual Meeting of Stockholders on April 28, 2000. At the meeting, the stockholders of the Company considered and voted upon the following matters: 1. The election of the following individuals as directors for a three-year term: Robert H. Singer, Jr. David M. Bradley The results of the election of directors are as follows: Votes ----- In favor Withheld --------- -------- Robert H. Singer, Jr. 1,711,928 6,166 David M. Bradley 1,711,928 6,166 There were no broker non-votes or abstentions on this proposal. The following directors' terms of office continued after the meeting: Howard A. Hecht Melvin R. Schroeder Mark Thompson KaRene Egemo 2. The ratification of the engagement of McGladrey & Pullen LLP, as the Company's independent auditors, was approved by a vote of 1,692,392 in favor, 2,300 votes against and 23,402 votes abstaining. There were no broker non-votes on this proposal. Item 5. Other Information None -12- Item 6. Exhibits and Reports on Form 8-K (a) Exhibits Exhibit 27. Financial data schedule. (Only submitted with filing in electronic format.) Exhibit 99.1 Press Release, dated May 26, 2000 (regarding the declaration of a dividend). Exhibit 99.2 Press Release, dated July 21, 2000 (regarding the issuance of limited financial information for the three months ended June 30, 2000). (b) Reports on Form 8-K None -13- SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. NORTH CENTRAL BANCSHARES, INC. DATE: August 14, 2000 BY: /s/ David M. Bradley David M. Bradley, Chairman, President and Chief Executive Officer DATE: August 14, 2000 /s/ John L. Pierschbacher John L. Pierschbacher, CPA Principal Financial Officer -14- EX-27 2 0002.txt FINANCIAL DATA SCHEDULE
9 6-MOS DEC-31-2000 JAN-01-2000 JUN-30-2000 2,471,759 8,953,337 0 0 44,902,932 0 0 307,350,210 2,799,063 382,815,677 265,841,506 51,000,000 2,628,850 27,652,488 0 0 40,111 35,652,722 382,815,677 11,709,072 1,552,379 0 13,261,451 5,949,889 7,816,418 5,445,033 60,000 0 4,222,628 3,069,464 3,069,464 0 0 2,011,867 0.99 0.98 7.54 836,632 0 0 0 2,776,539 39,032 1,556 2,799,063 2,799,063 0 0
EX-99.1 3 0003.txt PRESS RELEASE DATED MAY 26, 2000 Exhibit 99.1 Press Release PRESS RELEASE May 26, 2000 For further information contact: David M. Bradley Chairman, President & Chief Executive Officer North Central Bancshares, Inc. 825 Central Avenue Fort Dodge, Iowa 50501 515-576-7531 NORTH CENTRAL BANCSHARES, INC. ANNOUNCES DIVIDEND David M. Bradley, Chairman, President and Chief Executive Officer of North Central Bancshares, Inc. (the "Company") announced today that the Company declared a regular quarterly cash dividend of $0.125 per share on the Company's common stock for the fiscal quarter ended June 30, 2000. The dividend will be payable to all stockholders of record as of June 16, 2000 and will be paid on July 6, 2000. North Central Bancshares, Inc. serves north central and southeastern Iowa at 8 full service locations in Fort Dodge, Nevada, Ames, Burlington, Mount Pleasant and Perry, Iowa through its wholly-owned subsidiary, First Federal Savings Bank of Iowa, headquartered in Fort Dodge, Iowa. The Bank's deposits are insured by the Federal Deposit Insurance Corporation. The Company's stock is traded on The Nasdaq National Market under the symbol "FFFD". EX-99.2 4 0004.txt PRESS RELEASE DATED JUNE 30, 2000 Exhibit 99.2 Press Release PRESS RELEASE July 21, 2000 For further information contact: David M. Bradley Chairman, President and Chief Executive Officer North Central Bancshares, Inc. 825 Central Avenue PO Box 1237 Fort Dodge, Iowa 50501 515-576-7531 NORTH CENTRAL BANCSHARES, INC. ANNOUNCES RECORD EARNINGS PER SHARE FOR SECOND QUARTER 2000 (Nasdaq: FFFD) Fort Dodge, Iowa -- North Central Bancshares, Inc. (the "Company"), the holding company for First Federal Savings Bank of Iowa (the "Bank"), announced today that the Company earned a record $0.50 diluted earnings per share for the second quarter of 2000, compared to diluted earnings per share of $0.38 for the second quarter of 1999, an increase of 31.6%. In dollars, the Company earned $1,005,000 for the second quarter of 2000, compared to $1,074,000 for the second quarter of 1999. The Company earned $2,012,000, or diluted earnings per share of $0.98, for the six months ended June 30, 2000, compared to $2,132,000, or diluted earnings per share of $0.75, for the six months ended June 30, 1999. Total assets at June 30, 2000 were $382.8 million as compared to $367.4 million at December 31, 1999. The increase in assets resulted primarily from increases in loans, offset by a decrease in securities available-for-sale. Securities available-for-sale decreased $4.8 million, or 9.6%, from $49.7 million at December 31, 1999 to $44.9 million at June 30, 2000. The decrease in securities available for sale was primarily due to calls and maturities in excess of purchases. Loans increased by $20.6 million, or 7.2 %, to $307.4 million at June 30, 2000 from $286.8 million at December 31, 1999. Deposits decreased $5.2 million, or 1.9%, to $265.8 million at June 30, 2000 from $271.0 million at December 31, 1999. Other borrowed funds increased $22.9 million, or 41.1%, to $78.7 million at June 30, 2000 from $55.7 million at December 31, 1999. The increase in other borrowings was primarily due to the funding of asset growth and stock repurchases. Nonperforming assets were 0.30% of total assets as of June 30, 2000 compared to 0.20% of total assets as of December 31, 1999. The allowance for loan losses was $2.8 million, or 0.89% of total loans, at June 30, 2000, compared to $2.8 million, or 0.95% of total loans, at December 31, 1999. The net interest spread for the three months ended June 30, 2000 of 2.67% decreased from the net interest spread of 2.97% for the three months ended June 30, 1999. The net interest margin for the three months ended June 30, 2000 of 3.04% was a decrease from the net interest margin of 3.46% for the three months ended June 30, 1999. Net interest income for the three months ended June 30, 2000 was $2,701,000, compared to net interest income of $2,769,000 for the corresponding period a year ago. The Bank's provision for loan losses was $30,000 for the three months ended June 30, 2000 and 1999. The Company establishes provisions for loan losses, which are charged to operations, in order to maintain the allowance for loan losses at a level which is deemed to be appropriate based upon an assessment of prior conditions, the volume and type of loans in the Bank's portfolio, and other factors related to the collectibility of the Bank's loan portfolio. - MORE- Stockholders' equity was $35.7 million at June 30, 2000, compared to $38.1 million at December 31, 1999. Stockholders' equity decreased by $2.4 million primarily due to stock repurchases and dividends declared, which were offset in part by earnings. Book value, or stockholders' equity per share at June 30, 2000 was $17.69 and was $16.86 at December 31, 1999. The ratio of stockholders' equity to total assets was 9.3% at June 30, 2000, as compared to 10.4% at December 31, 1999. Stockholders of record on June 16, 2000, received a quarterly cash dividend of $0.125 per share on July 6, 2000. The Bank relocated to a newly constructed 8,000 square foot branch office on July 10, 2000 in Ames, Iowa in Story County. The sale of the previous branch office in Ames, Iowa is currently pending. The Company commenced a stock repurchase program on April 27, 2000. The program authorizes the Company to repurchase up to 5.0%, or 102,862 shares, of its 2,057,242 outstanding shares of common stock during the next twelve months. The Company has repurchased 40,000 shares through July 21, 2000. The remaining repurchases will be made from time to time in open market transactions at the discretion of management. North Central Bancshares, Inc. serves north central and southeastern Iowa at 8 full service locations in Fort Dodge, Nevada, Ames, Perry, Burlington and Mount Pleasant, Iowa through its wholly-owned subsidiary, First Federal Savings Bank of Iowa, headquartered in Fort Dodge, Iowa. The Bank's deposits are insured by the Federal Deposit Insurance Corporation. The Company's stock is traded on The Nasdaq National Market under the symbol "FFFD". For more information contact: David M. Bradley, President, 515-576-7531 FINANCIAL HIGHLIGHTS OF NORTH CENTRAL BANCSHARES, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Financial Condition
(Dollars in Thousands, except per share and share data) June 30, 2000 December 31, 1999 -------------- ------------------ Assets Cash and cash equivalents $ 11,425 $ 12,669 Securities available for sale 44,902 49,693 Loans (net of allowance of loan loss of $2.8 million and $2.8 million, respectively) 307,350 286,838 Goodwill 5,679 5,915 Other assets 13,460 12,318 ---------- ---------- Total Assets $ 382,816 $ 367,433 ========== ========== Liabilities Deposits $ 265,842 $ 271,031 Other borrowed funds 78,652 55,715 Other liabilities 2,629 2,560 ---------- ---------- Total Liabilities 347,123 329,306 Stockholders' Equity 35,693 38,127 ---------- ---------- Total Liabilities and Stockholders' Equity $ 382,816 $ 367,433 ========== ========== Stockholders' equity to total assets 9.32% 10.38% ========== ========== Book value per share $ 17.69 $ 16.86 ========== ========== Total shares outstanding 2,017,242 2,261,742 ========== ==========
Condensed Consolidated Statements of Income (Dollars in Thousands, except per share data)
For the Three Months For the Six Months Ended June 30, Ended June 30, 2000 1999 2000 1999 ------ ------ ------- ------- Interest income $6,731 $6,004 $13,261 $11,972 Interest expense 4,030 3,235 7,816 6,435 ------ ------ ------- ------- Net interest income 2,701 2,769 5,445 5,537 Provision for loan loss 30 30 60 60 ------ ------ ------- ------- Net interest income after provision for loan loss 2,671 2,739 5,385 5,477 Noninterest income 952 1,055 1,907 1,975 Noninterest expense 2,110 2,157 4,223 4,212 ------ ------ ------- ------- Income before income taxes 1,513 1,637 3,069 3,240 Income taxes 508 563 1,057 1,108 ------ ------ ------- ------- Net income $1,005 $1,074 $ 2,012 $ 2,132 ====== ====== ======= ======= Basic earnings per share $ 0.51 $ 0.39 $ 0.99 $ 0.76 ====== ====== ======= ======= Diluted earnings per share $ 0.50 $ 0.38 $ 0.98 $ 0.75 ====== ====== ======= =======
Selected Financial Ratios
For the Three Months For the Six Months Ended June 30, Ended June 30, 2000 1999 2000 1999 ----- ----- ----- ----- Performance ratios Net interest spread 2.67% 2.97% 2.72% 2.94% Net interest margin 3.04% 3.46% 3.09% 3.48% Return on average assets 1.07% 1.27% 1.09% 1.27% Return on average equity 11.27% 9.19% 11.10% 8.95% Efficiency ratio (noninterest expense divided by the sum of net interest income before provision for loan losses plus noninterest income) 57.77% 56.41% 57.43% 56.07%
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