UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) January 31, 2012
CSB Bancorp, Inc.
(Exact name of registrant as specified in its charter)
Ohio | 0-21714 | 34-1687530 | ||||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification Number) | ||||
91 North Clay Street, P.O. Box 232, Millersburg, Ohio |
44654 | |||||
(Address of Principal Executive Offices) | (Zip Code) |
Registrants telephone number, including area code (330) 674-9015
Not Applicable
(Former Name or former address if changed since last report)
Check the appropriate box below if the Form 8-k filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On January 31, 2012, CSB Bancorp, Inc. issued a press release announcing its earnings for the three month period ended December 31, 2011. A copy of this press release and related financial tables are furnished herein as Exhibit 99.1.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
( c ) Exhibits
99.1 | Press release and Quarterly Report for CSB Bancorp, Inc. for the quarter ended December 31, 2011. |
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 hereunto duly authorized.
CSB Bancorp, Inc. | ||||
By: | /s/ Paula J. Meiler | |||
Paula J. Meiler | ||||
Date: January 31, 2012 |
Senior Vice President and Chief Financial Officer |
Exhibit 99.1
CSB BANCORP, INC. REPORTS FOURTH QUARTER AND FULL YEAR EARNINGS
Fourth Quarter and Full Year Highlights
Quarter Ended | Full Year Ended | |||||||
December 31, 2011 | December 31, 2011 | |||||||
Diluted earnings per share |
$ | .30 | $ | 1.35 | ||||
Net Income |
$ | 820,000 | $ | 3,687,000 | ||||
Return on average common equity |
6.58 | % | 7.57 | % | ||||
Return on average assets |
0.61 | % | 0.78 | % |
Millersburg, Ohio January 31, 2012 CSB Bancorp, Inc. (OTCBB: CSBB.ob) today announced fourth quarter 2011 net income of $820 thousand or $.30 per basic and diluted share, as compared to $956 thousand or $.35 per basic and diluted share for the same period in 2010.
Annualized returns on average common equity (ROE) and average assets (ROA) for the quarter were 6.58% and 0.61%, respectively, compared with 7.95% and 0.83% for the fourth quarter of 2010.
For the full year of 2011, the Company reported net income of $3.7 million or $1.35 per basic and diluted share, as compared to $3.5 million or $1.28 per basic and diluted share in 2010. Full year ROE and ROA were 7.57% and 0.78%, respectively, compared to 7.43% and 0.78% in 2010.
Eddie Steiner, President and CEO commented, During fourth quarter, the Company acquired two branches located in Wooster, Ohio. The transaction added six thousand new customer relationships, $74 million in deposits, $9 million in loans, and involved $3.7 million in purchase premium. Related acquisition expenses were recognized as incurred, including system conversion and operations integration charges totaling $337 thousand. We anticipate the Wooster branch presence will assist our continued growth in that market.
Revenue totaled $5.2 million for the fourth quarter of 2011, a 7% increase from the prior-year fourth quarter. Full year revenue of $20.1 million reflects a $1 million, or 5%, increase as compared to full year 2010.
Non-interest expense amounted to $3.7 million during the quarter, an increase of $585 thousand or 18% from fourth quarter 2010. For the full year ended December 31, 2011, including the nonrecurring expenses related to purchase and assumption of Wooster, Ohio branch operations, non-interest expense increased $1.1 million or 8% versus 2010.
The Companys fourth quarter efficiency ratio amounted to 71.5% as compared to 64.8% for the same quarter in the prior year. Excluding the aforementioned nonrecurring expenses, the fourth quarter efficiency ratio equated to 69.5%. The full year 2011 efficiency ratio of 68.1%, including the nonrecurring acquisition and conversion expenses, compares to 66.0% for the full prior year.
Federal income tax provision was $324 thousand for fourth quarter 2011, compared to $440 thousand for the same quarter in 2010. Full year income tax of $1.6 million for 2011 was 2% higher than prior year and reflects an effective tax rate of 30.3% for current year versus 31.0% in 2010.
Average total assets during the quarter amounted to $530 million, an increase of $75 million or 17% above the same quarter of the prior year. Average loan balances of $320 million were $5 million or 1% above prior year fourth quarter, while average securities balances of $116 million increased $40 million or 53% as compared to fourth quarter 2010.
Total assets amounted to $551 million on December 31, 2011, up $94 million or 21% from December 31, 2010. Net loans increased to $320 million, up $8 million or 3% from the prior year-end, while securities balances of $128 million were $48 million or 59% higher than year ago balances.
Average commercial loan balances for the quarter, including commercial real estate, increased $12 million or 6% above year ago levels. Average residential mortgage balances declined by $11 million or 15% during the year. The decline of in-house mortgage balances was primarily due to customers continuing to select secondary market mortgage products because of the historic low interest rates prevailing in those fixed rate products. Average home equity balances increased $3 million or 10%, and average consumer credit balances increased $80 thousand or 1% versus the same quarter of the prior year.
Net charge-offs for the quarter and the full year were $275 thousand and $900 thousand, respectively. Net charge-offs equated to 0.28% of average loans during 2011 as compared to 0.40% during 2010.
Nonperforming assets totaled $3.5 million or 1.08% of total loans plus other real estate at December 31, 2011, compared to $4.6 million or 1.47% at the prior year-end. Delinquent loan balances as of year-end 2011 amounted to 2.04% of total loans as compared to 2.55% at the end of 2010.
The Company funded $240 thousand in loan loss provision during the fourth quarter and the allowance for loan losses amounted to 1.26% of total loans on December 31, 2011. The ratio of the allowance for loan losses to nonperforming loans stood at 117% at the end of 2011.
Commenting on the Companys credit quality, Steiner noted, Our level of nonperforming assets remains somewhat elevated, but each quarter of 2011 reflected improvement as compared to the prior year quarter. Early stage delinquencies within the loan portfolio at the end of 2011 are also lower than prior year levels.
Average deposit balances grew by $72 million, or 20%, during the fourth quarter, attributable almost entirely to the Wooster market transaction. Total average deposits of $422 million for the quarter were 22% above the prior years fourth quarter average.
Deposit balances totaled $444 million at year-end, an increase of $90 million or 25% from the prior year-end. Within the deposit category, average non interest-bearing account balances for the fourth quarter increased by $16 million, or 23% above the same period in the prior year. Average interest-bearing checking, money market and traditional savings balances increased $42 million or 33% from year ago levels, while average time deposit balances grew by $18 million or 12% during the year. In addition to the changes in average deposit balances, the average balance of securities sold under repurchase agreement during the fourth quarter grew by $4 million or 13% above the average for the same period in the prior year. Repurchase agreements, while considered short-term borrowings, are primarily tied to overnight customer sweep accounts.
Shareholders equity totaled $49.4 million on December 31, 2011 with 2.7 million common shares outstanding. The tangible equity to assets ratio amounted to 8.0% on December 31, 2011, as compared to 9.9% on December 31, 2010. The Company declared a common dividend of $.18 per share during the quarter. Based on the December 31, 2011 closing stock price of $16.75 per share, the Companys annual dividend yield approximates 4.3%.
About CSB Bancorp, Inc.
CSB is a financial holding company headquartered in Millersburg, Ohio, with approximate assets of $551 million as of December 31, 2011. CSB provides a complete range of banking and other financial services to consumers and businesses through its wholly owned subsidiary, The Commercial and Savings Bank, with sixteen banking centers in Holmes, Wayne, Tuscarawas and Stark counties and Trust offices located in Millersburg and Wooster, Ohio.
Forward-Looking Statement
This release contains forward-looking statements relating to present or future trends or factors affecting the banking industry, and specifically the financial condition and results of operations, including without limitation, statements relating to the earnings outlook of the Company, as well as its operations, markets and products. Actual results could differ materially from those indicated. Among the important factors that could cause results to differ materially are interest rate changes, softening in the economy, which could materially impact credit quality trends and the ability to generate loans, changes in the mix of the Companys business, competitive pressures, changes in accounting, tax or regulatory practices or requirements and those risk factors detailed in the Companys periodic reports and registration statements filed with the Securities and Exchange Commission. The Company undertakes no obligation to release revisions to these forward-looking statements or reflect events or circumstances after the date of this release.
Contact Information:
Paula J. Meiler, SVP & CFO
330-763-2873
paula.meiler@csb1.com
CSB BANCORP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands except per share data)
Quarters | ||||||||||||||||||||||||||||
2011 | 2011 | 2011 | 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||||||
EARNINGS |
4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | 4th Qtr | 12 months | 12 months | |||||||||||||||||||||
Net interest income FTE (a) |
$ | 4,280 | $ | 4,163 | $ | 4,158 | $ | 3,995 | $ | 3,959 | $ | 16,596 | $ | 15,796 | ||||||||||||||
Provision for loan losses |
240 | 240 | 190 | 280 | 239 | 950 | 1,235 | |||||||||||||||||||||
Other income |
920 | 1,045 | 784 | 759 | 898 | 3,508 | 3,275 | |||||||||||||||||||||
Other expenses |
3,748 | 3,460 | 3,283 | 3,118 | 3,163 | 13,609 | 12,546 | |||||||||||||||||||||
FTE adjustment (a) |
67 | 66 | 62 | 61 | 60 | 256 | 226 | |||||||||||||||||||||
Net income |
820 | 999 | 972 | 896 | 956 | 3,687 | 3,496 | |||||||||||||||||||||
Diluted earnings per share |
0.30 | 0.37 | 0.35 | 0.33 | 0.35 | 1.35 | 1.28 | |||||||||||||||||||||
PERFORMANCE RATIOS |
||||||||||||||||||||||||||||
Return on average assets (ROA) |
0.61 | % | 0.87 | % | 0.87 | % | 0.80 | % | 0.83 | % | 0.78 | % | 0.78 | % | ||||||||||||||
Return on average common equity (ROE) |
6.58 | % | 8.04 | % | 8.06 | % | 7.67 | % | 7.95 | % | 7.57 | % | 7.43 | % | ||||||||||||||
Net interest margin FTE (a) |
3.38 | % | 3.83 | % | 3.93 | % | 3.78 | % | 3.64 | % | 3.71 | % | 3.73 | % | ||||||||||||||
Efficiency ratio |
71.47 | % | 69.60 | % | 66.13 | % | 65.29 | % | 64.80 | % | 68.11 | % | 65.96 | % | ||||||||||||||
Number of full-time equivalent employees |
154 | 144 | 143 | 142 | 140 | |||||||||||||||||||||||
MARKET DATA |
||||||||||||||||||||||||||||
Book value/common share |
$ | 18.07 | $ | 17.99 | $ | 17.75 | $ | 17.35 | $ | 17.24 | ||||||||||||||||||
Period-end common share mkt value |
16.75 | 15.00 | 15.50 | 15.20 | 15.57 | |||||||||||||||||||||||
Market as a % of book |
92.70 | % | 83.38 | % | 87.32 | % | 87.61 | % | 90.31 | % | ||||||||||||||||||
Price-to-earnings ratio |
12.41 | 10.71 | 11.48 | 11.34 | 12.16 | |||||||||||||||||||||||
Cash dividends/common share |
$ | 0.18 | $ | 0.18 | $ | 0.18 | $ | 0.18 | $ | 0.18 | $ | 0.72 | $ | 0.72 | ||||||||||||||
Common stock dividend payout ratio |
60.00 | % | 48.65 | % | 51.43 | % | 54.55 | % | 51.43 | % | ||||||||||||||||||
Average basic common shares |
2,734,799 | 2,734,799 | 2,734,799 | 2,734,799 | 2,734,799 | 2,734,799 | 2,734,799 | |||||||||||||||||||||
Average diluted common shares |
2,735,229 | 2,734,799 | 2,734,831 | 2,734,812 | 2,734,836 | 2,734,838 | 2,734,799 | |||||||||||||||||||||
Period end common shares outstanding |
2,734,799 | 2,734,799 | 2,734,799 | 2,734,799 | 2,734,799 | |||||||||||||||||||||||
Common shares repurchased |
0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
Common stock market capitalization |
$ | 45,808 | $ | 41,022 | $ | 42,389 | $ | 41,569 | $ | 42,581 | ||||||||||||||||||
ASSET QUALITY |
||||||||||||||||||||||||||||
Gross charge-offs |
$ | 328 | $ | 192 | $ | 178 | $ | 316 | $ | 621 | $ | 1,014 | $ | 1,389 | ||||||||||||||
Net charge-offs (recoveries) |
275 | 178 | 164 | 283 | 615 | 900 | 1,264 | |||||||||||||||||||||
Allowance for loan losses |
4,082 | 4,116 | 4,054 | 4,028 | 4,031 | |||||||||||||||||||||||
Nonperforming assets (NPAs) |
3,500 | 4,000 | 3,974 | 3,943 | 4,626 | |||||||||||||||||||||||
Net charge-off/average loans ratio |
0.34 | % | 0.22 | % | 0.21 | % | 0.36 | % | 0.77 | % | 0.28 | % | 0.40 | % | ||||||||||||||
Allowance for loan losses/period-end loans |
1.26 | 1.31 | 1.28 | 1.25 | 1.28 | |||||||||||||||||||||||
NPAs/loans and other real estate |
1.08 | 1.27 | 1.25 | 1.22 | 1.47 | |||||||||||||||||||||||
Allowance for loan losses/nonperforming loans |
116.96 | 117.77 | 115.30 | 102.93 | 87.84 | |||||||||||||||||||||||
CAPITAL & LIQUIDITY |
||||||||||||||||||||||||||||
Period-end tangible equity to assets |
8.01 | % | 10.33 | % | 10.38 | % | 10.23 | % | 9.90 | % | ||||||||||||||||||
Average equity to assets |
9.33 | 10.84 | 10.80 | 10.49 | 10.49 | |||||||||||||||||||||||
Average equity to loans |
15.46 | 15.60 | 15.13 | 14.82 | 15.13 | |||||||||||||||||||||||
Average loans to deposits |
75.78 | 90.07 | 91.77 | 91.44 | 91.15 | |||||||||||||||||||||||
AVERAGE BALANCES |
||||||||||||||||||||||||||||
Assets |
$ | 530,049 | $ | 454,685 | $ | 448,205 | $ | 451,666 | $ | 454,657 | $ | 471,329 | $ | 445,649 | ||||||||||||||
Earning assets |
502,198 | 431,271 | 424,925 | 428,686 | 431,661 | 446,929 | 422,996 | |||||||||||||||||||||
Loans |
319,852 | 315,750 | 319,906 | 319,646 | 315,348 | 318,781 | 313,549 | |||||||||||||||||||||
Deposits |
422,094 | 350,577 | 348,601 | 349,574 | 345,962 | 367,865 | 334,073 | |||||||||||||||||||||
Shareholders equity |
49,454 | 49,265 | 48,389 | 47,387 | 47,703 | 48,674 | 47,081 | |||||||||||||||||||||
ENDING BALANCES |
||||||||||||||||||||||||||||
Assets |
$ | 551,233 | $ | 457,849 | $ | 449,552 | $ | 445,361 | $ | 457,056 | ||||||||||||||||||
Earning assets |
522,410 | 435,806 | 427,281 | 422,793 | 434,876 | |||||||||||||||||||||||
Loans |
324,182 | 313,980 | 316,581 | 322,017 | 315,647 | |||||||||||||||||||||||
Deposits |
443,553 | 354,856 | 347,258 | 348,209 | 353,491 | |||||||||||||||||||||||
Shareholders equity |
49,429 | 49,191 | 48,538 | 47,457 | 47,154 |
NOTES:
(a) | Net Interest income on a fully tax-equivalent (FTE) basis restates interest on tax-exempt securities and loans as if such interest were subject to federal income tax at the statutory rate. Net interest income on an FTE basis differs from net interest income under U.S. generally accepted accounting principles. |
CSB BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
dollars in thousands, except per share data
December 31, | December 31, | |||||||
2011 | 2010 | |||||||
ASSETS |
||||||||
Cash and cash equivalents |
||||||||
Cash and due from banks |
$ | 12,519 | $ | 9,798 | ||||
Interest-earning deposits in other banks |
69,739 | 38,497 | ||||||
Federal funds sold |
| 65 | ||||||
|
|
|
|
|||||
Total cash and cash equivalents |
82,258 | 48,360 | ||||||
Securities |
||||||||
Available-for-sale, at fair-value |
123,026 | 75,204 | ||||||
Restricted stock, at cost |
5,463 | 5,463 | ||||||
|
|
|
|
|||||
Total securities |
128,489 | 80,667 | ||||||
Loans held for sale |
| | ||||||
Loans |
324,182 | 315,647 | ||||||
Less allowance for loan losses |
4,082 | 4,031 | ||||||
|
|
|
|
|||||
Net loans |
320,100 | 311,616 | ||||||
Goodwill and core deposit intangible |
5,762 | 2,131 | ||||||
Bank owned life insurance |
3,068 | 2,961 | ||||||
Premises and equipment, net |
8,513 | 7,878 | ||||||
Accrued interest receivable and other assets |
3,043 | 3,443 | ||||||
|
|
|
|
|||||
TOTAL ASSETS |
$ | 551,233 | $ | 457,056 | ||||
|
|
|
|
|||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||
Liabilities |
||||||||
Deposits: |
||||||||
Noninterest-bearing |
$ | 85,890 | $ | 69,151 | ||||
Interest-bearing |
357,663 | 284,340 | ||||||
|
|
|
|
|||||
Total deposits |
443,553 | 353,491 | ||||||
Short-term borrowings |
37,073 | 32,018 | ||||||
Other borrowings |
19,161 | 22,909 | ||||||
Accrued interest payable and other liabilities |
2,017 | 1,484 | ||||||
|
|
|
|
|||||
Total liabilities |
501,804 | 409,902 | ||||||
|
|
|
|
|||||
Shareholders equity |
||||||||
Common stock, $6.25 par value. Authorized 9,000,000 shares; issued 2,980,602 shares in 2011 and 2010 |
18,629 | 18,629 | ||||||
Additional paid-in capital |
9,994 | 9,994 | ||||||
Retained earnings |
24,391 | 22,673 | ||||||
Treasury stock at cost245,803 shares in 2011 and 2010 |
(5,015 | ) | (5,015 | ) | ||||
Accumulated other comprehensive income |
1,430 | 873 | ||||||
|
|
|
|
|||||
Total shareholders equity |
49,429 | 47,154 | ||||||
|
|
|
|
|||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ | 551,233 | $ | 457,056 | ||||
|
|
|
|
CSB BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
dollars in thousands, except per share data
Quarter ended December 31, |
Year ended December 31, |
|||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Interest and dividend income: |
||||||||||||||||
Loans, including fees |
$ | 4,232 | $ | 4,340 | $ | 16,977 | $ | 17,311 | ||||||||
Taxable securities |
729 | 585 | 2,538 | 2,648 | ||||||||||||
Nontaxable securities |
111 | 97 | 421 | 354 | ||||||||||||
Other |
39 | 25 | 82 | 77 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total interest and dividend income |
5,111 | 5,047 | 20,018 | 20,390 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Interest expense: |
||||||||||||||||
Deposits |
710 | 868 | 2,864 | 3,509 | ||||||||||||
Other |
189 | 279 | 814 | 1,311 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total interest expense |
899 | 1,147 | 3,678 | 4,820 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net interest income |
4,212 | 3,900 | 16,340 | 15,570 | ||||||||||||
Provision for loan losses |
240 | 239 | 950 | 1,235 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net interest income after provision for loan losses |
3,972 | 3,661 | 15,390 | 14,335 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-interest income |
||||||||||||||||
Service charges on deposits accounts |
324 | 276 | 1,134 | 1,126 | ||||||||||||
Trust services |
173 | 253 | 677 | 655 | ||||||||||||
Securities gains (losses), net |
0 | 0 | 237 | 148 | ||||||||||||
Gain on sale of loans |
65 | 89 | 219 | 242 | ||||||||||||
Other |
358 | 280 | 1,241 | 1,104 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total non-interest income |
920 | 898 | 3,508 | 3,275 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-interest expenses |
||||||||||||||||
Salaries and employee benefits |
2,047 | 1,780 | 7,459 | 6,880 | ||||||||||||
Occupancy expense |
259 | 199 | 890 | 808 | ||||||||||||
Equipment expense |
154 | 121 | 524 | 497 | ||||||||||||
Franchise tax expense |
145 | 131 | 550 | 536 | ||||||||||||
Professional and director fees |
176 | 174 | 713 | 631 | ||||||||||||
Federal deposit insurance |
99 | 69 | 352 | 486 | ||||||||||||
Amortization of intangible assets |
33 | 16 | 78 | 63 | ||||||||||||
Other expenses |
835 | 673 | 3,043 | 2,645 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total non-interest expenses |
3,748 | 3,163 | 13,609 | 12,546 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income before income tax |
1,144 | 1,396 | 5,289 | 5,064 | ||||||||||||
Federal income tax provision |
324 | 440 | 1,602 | 1,568 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income |
$ | 820 | $ | 956 | $ | 3,687 | $ | 3,496 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income per share: |
||||||||||||||||
Basic |
$ | 0.30 | $ | 0.35 | $ | 1.35 | $ | 1.28 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Diluted |
$ | 0.30 | $ | 0.35 | $ | 1.35 | $ | 1.28 | ||||||||
|
|
|
|
|
|
|
|
Note: Certain prior year balances have been reclassified to conform to the current year presentation.
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