0001193125-16-435176.txt : 20160122 0001193125-16-435176.hdr.sgml : 20160122 20160122083107 ACCESSION NUMBER: 0001193125-16-435176 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20160122 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20160122 DATE AS OF CHANGE: 20160122 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CIVISTA BANCSHARES, INC. CENTRAL INDEX KEY: 0000944745 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 341558688 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-36192 FILM NUMBER: 161354758 BUSINESS ADDRESS: STREET 1: 100 EAST WATER ST STREET 2: P O BOX 5016 CITY: SANDUSKY STATE: OH ZIP: 44870 BUSINESS PHONE: 4196254121 MAIL ADDRESS: STREET 1: 100 EAST WATER ST STREET 2: P O BOX 5016 CITY: SANDUSKY STATE: OH ZIP: 44870 FORMER COMPANY: FORMER CONFORMED NAME: FIRST CITIZENS BANC CORP /OH DATE OF NAME CHANGE: 19950502 8-K 1 d123704d8k.htm FORM 8-K Form 8-K

 

 

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 22, 2016

 

 

Civista Bancshares, Inc.

(Exact name of Registrant as specified in its charter)

 

 

 

Ohio   001-36192   34-1558688

(State or other jurisdiction

of incorporation or organization)

  

(Commission

File Number)

  

( IRS Employer

Identification No.)

100 East Water Street, P.O. Box 5016, Sandusky, Ohio 44870

(Address of principle executive offices)

Registrant’s telephone number, including area code: (419) 625-4121

N/A

(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 communications 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 22, 2016, Civista Bancshares, Inc. announced preliminary unaudited earnings for the quarter and twelve months ended December 31, 2015. A copy of the press release is furnished as Exhibit 99.1 to this report and incorporated here by reference.

In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

 

Item 9.01 Financial Statements and Exhibits

(d) Exhibit 99.1 Press release of Civista Bancshares, Inc. reporting financial results and earnings for the three and twelve-month periods ended December 31, 2015.

SIGNATURE

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.

 

     

Civista Bancshares, Inc.

      (Registrant)
Date: January 22, 2016      

/s/ Todd A. Michel

      Todd A. Michel,
      Senior Vice President & Controller
 EX-99.1 2 d123704dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

Civista Bancshares, Inc. Announces Strong Earnings for 2015

Sandusky, Ohio, January 22, 2016 /PRNewswire/– Civista Bancshares, Inc. (NASDAQ:CIVB) (“Civista”) reported net income attributable to common shares of $2.8 million, or $0.29 per diluted share, for the fourth quarter of 2015, compared with $1.9 million, or $0.21 per diluted share, for the prior year period. For the twelve-month period ended December 31, 2015, Civista reported net income available to common shareholders of $11.2 million or $1.17 per diluted share, compared to $7.7 million, or $0.85 per diluted share, in the same period of 2014.

“We have increased our 2015 diluted earnings per share by 38%. We completed the acquisition of TCNB Financial Corp (“TCNB”) in the first quarter of the year. We have decreased our nonperforming assets 30%, increased our net interest income, slightly improved noninterest income, and reduced noninterest expenses as a percent of average assets” said James O. Miller, Chairman, President and CEO of Civista.

Results of Operations:

Net interest income for the fourth quarter of 2015 increased $1.4 million, or 13.1% and $5.5 million, or 13.2%, for the twelve months ended December 31 compared to the same periods of 2014. Tax equivalent net interest margin was 4.09% for the fourth quarter and 3.96% for the twelve months ended December 31, 2015. The increase in net interest income for the quarter and twelve months ended December 31, 2015 was due both to an increase in average loans outstanding as well as a decrease in cost of funds. Interest and fees on loans was also positively affected by the payoff of two of loans that had been on nonaccrual status for significant period of time, which contributed $268 thousand to the fourth quarter and $549 thousand for the year. Mr. Miller continued, “We have maintained a core net interest margin at approximately 4.00% while keeping our asset duration under two years.”

Summary Average Balance Sheet                                         
(Tax-equivalent basis / dollars in thousands)                                         
     Three months ended December 31,  
     2015     2014  
     Average
balance		      Interest      Yield /
rate		     Average
balance		      Interest      Yield /
rate		  

Assets

                 

Loans

    $ 996,861       $ 11,513         4.59 %    $ 898,197       $ 10,182         4.50 % 

Securities

      212,463         1,459         3.47 %      211,955         1,439         3.39 % 

Interest-bearing deposits

      9,473         4         0.17 %      6,748         2         0.12 % 
  

 

 

     

 

 

       

 

 

     

 

 

     

Total interest earning assets

    $ 1,218,797       $ 12,976         4.36 %    $ 1,116,900       $ 11,623         4.26 % 

Liabilities

                 

Int-bearing demand and savings

    $ 542,255       $ 107         0.08 %    $ 503,926       $ 97         0.08 % 

Time deposits

      214,167         392         0.73 %      223,498         455         0.81 % 

FHLB advances and other borrowings

      111,481         316         1.13 %      79,314         320         1.60 % 
  

 

 

     

 

 

       

 

 

     

 

 

     

Total interest-bearing liabilities

    $ 867,903       $ 815         0.37 %    $ 806,738       $ 872         0.43 % 

Noninterest-bearing deposits

    $ 302,849            $ 260,382         

Net interest income and interest rate spread

       $ 12,161         3.99 %       $ 10,751         3.83 % 

Net interest margin

            4.09 %            3.95 % 
Summary Average Balance Sheet                                         
(Tax-equivalent basis / dollars in thousands)                                         
     Twelve months ended December 31,  
     2015     2014  
     Average
balance		      Interest      Yield /
rate		     Average
balance		      Interest      Yield /
rate		  

Assets

                 

Loans

    $ 981,475       $ 44,784         4.57 %    $ 874,432       $ 40,032         4.58 % 

Securities

      211,436         5,815         3.46 %      214,123         5,799         3.35 % 

Interest-bearing deposits

      44,647         102         0.23 %      53,829         139         0.26 % 
  

 

 

     

 

 

       

 

 

     

 

 

     

Total interest earning assets

    $ 1,237,558       $ 50,701         4.23 %    $ 1,142,384       $ 45,970         4.15 % 

Liabilities

                 

Int-bearing demand and savings

    $ 543,986       $ 422         0.08 %    $ 501,408       $ 376         0.07 % 

Time deposits

      223,099         1,665         0.75 %      227,682         1,916         0.84 % 

FHLB advances and other borrowings

      95,132         1,222         1.28 %      83,058         1,812         2.18 % 
  

 

 

     

 

 

       

 

 

     

 

 

     

Total interest-bearing liabilities

    $ 862,217       $ 3,309         0.38 %    $ 812,148       $ 4,104         0.51 % 

Noninterest-bearing deposits

    $ 340,360            $ 297,003         

Net interest income and interest rate spread

       $ 47,392         3.84 %       $ 41,866         3.64 % 

Net interest margin

            3.96 %            3.79 % 

The provision for loan losses was $0 in the fourth quarter of 2015 and 2014, and $1.2 million and $1.5 million for the twelve months ended December 31, 2015 and 2014, respectively. The decrease in provision for loan losses for the twelve months of 2015 is due to improved asset quality.

During the quarter, noninterest income totaled $3.1 million, an increase of $288 thousand, or 10.1%, compared to the prior year’s fourth quarter. Year-to-date noninterest income increased $404 thousand, or 2.9%, when compared to year-to-date 2014.

 

Noninterest income                            
(dollars in thousands)    Three months ended
December 31,		      Twelve months ended
December 31,		  
     2015      2014      2015      2014  

Service charges

    $ 1,221       $ 1,073       $ 4,708       $ 4,257   

Net gain on sale of securities

      (13 )       (1 )       (18 )       113   

Net gain on sale of loans

      218         189         1,106         659   

ATM fees

      502         462         1,986         1,850   

Trust fees

      664         734         2,823         3,130   

Tax refund processing fees

      —           3         2,000         2,324   

Other

      554         398         1,673         1,541   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total noninterest income

    $ 3,146       $ 2,858       $ 14,278       $ 13,874   
  

 

 

     

 

 

     

 

 

     

 

 

  

Service charge income increased in both the three and twelve-month periods, primarily due to an increase in business service charges, as well as service charge fees instituted in our Dayton market since the acquisition of TCNB. Gain on sale of loans increased $29 thousand and $447 thousand in the three and twelve-month periods, respectively due to additional volume of loans sold as well as an increase in the premium on loans sold. Trust fees decreased $70 thousand and $307 thousand for the three and twelve-month periods, respectively, due to a decrease in trust assets. Tax refund processing fees were down $324 thousand, or 13.9% when compared to the twelve months of 2014, due to a change in the fee structure for 2015.

Noninterest expense totaled $10.7 million and $10.5 million for the three months ended December 31, 2015 and 2014, respectively. Year-to-date noninterest expense increased $1.4 million, or 3.4%, when compared to the twelve months of 2014.

Noninterest expense                            
(dollars in thousands)    Three months ended
December 31,		      Twelve months ended
December 31,		  
     2015      2014      2015      2014  

Salaries, Wages and benefits

    $ 5,898       $ 5,632       $ 23,630       $ 22,293   

Net occupancy and equipment

      1,056         883         3,919         3,677   

Contracted data processing

      429         480         1,821         1,560   

Professional services

      745         523         2,461         1,855   

Amortization of intangible assets

      189         165         711         769   

Marketing

      197         377         1,039         1,604   

Other

      2,227         2,422         9,363         9,792   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total noninterest expense

    $ 10,741       $ 10,482       $ 42,944       $ 41,550   
  

 

 

     

 

 

     

 

 

     

 

 

  

Salaries, wages and benefits expense increased $266 thousand for the fourth quarter and $1.3 million for the twelve-month period ending December 31, 2015. The increase in salaries, wages and benefits expense was due to normal merit increases, the addition of TCNB employees, as well as a change to our 401k match expense. On January 1, 2015, the 401k plan was modified to a safe harbor plan which led to an increase in the company match. Contracted data processing and professional fees increased for the twelve-month period ended December 31, 2015 due to expenses related to the acquisition of TCNB. Overall acquisition related expenses included in the twelve months ended December 31, 2015 were approximately $374 thousand.

Mr. Miller continued, “We have discussed for some time that we have built a chassis that will accommodate growth. In 2015, a year in which we added three offices from an acquisition and a loan production office, our efficiency ratio decreased to 67.0% compared to 71.7% for 2014. Removing the acquisition related expenses for the year, our noninterest expenses only increased 2.5%.”

Balance Sheet

Total assets increased $101.4 million, or 8.4%, from December 31, 2014 to December 31, 2015. This was due primarily to the acquisition of TCNB, which closed on March 6, 2015. Total assets of TCNB prior to the merger were $97.4 million, including $76.8 million in loans.

Total Loans increased $86.6 million or 9.6% from December 31, 2014 to December 31, 2015. The increase in total loans is primarily due to the acquisition of TCNB which added $76.8 million in loans.

End of period loan balances              
(dollars in thousands)              
     December 31,
2015		      December 31,
2014		  

Commercial and Agriculture

    $ 124,402       $ 113,265   

Commercial Real Estate - Owner Occupied

      167,897         143,014   

Commercial Real Estate - Non-owner Occupied

      348,439         308,666   

Residential Real Estate

      236,338         214,537   

Real Estate Construction

      58,898         65,452   

Farm Real Estate

      46,993         53,973   

Consumer and Other

      18,560         15,950   
  

 

 

     

 

 

  

Total Loans

    $ 1,001,527       $ 914,857   
  

 

 

     

 

 

  

Total deposits increased $83.1 million, or 8.6%, from December 31, 2014 to December 31, 2015. The increase in deposits was primarily due to the acquisition of TCNB, which included $86.9 million in deposits, partially offset by a decrease in time deposits.

 

End of period deposit balances              
(dollars in thousands)              
     December 31,
2015		      December 31,
2014		  

Noninterest-bearing demand

    $ 300,615       $ 250,701   

Interest-bearing demand

      176,303         179,388   

Savings and money market

      364,067         318,859   

Time deposits

      211,048         219,970   
  

 

 

     

 

 

  

Total Deposits

    $ 1,052,033       $ 968,918   
  

 

 

     

 

 

  

Total shareholder’s equity increased $10.1 million, or 8.8%, from December 31, 2014 to December 31, 2015 primarily due to increased retained earnings of $9.6 million.

Asset Quality

Nonperforming assets at December 31, 2015 were $13.3 million, a $5.7 million decrease from December 31, 2014. Net charge-offs were $1.1 million for 2015 compared to $3.4 million for 2014.

 

Non-performing Assets              
(dollars in thousands)              
     December 31,
2015		      December 31,
2014		  

Non-accrual loans

    $ 9,890       $ 13,558   

Restructured loans

      3,294         4,928   
  

 

 

     

 

 

  

Total non-performing loans

      13,184         18,486   

Other Real Estate Owned

      116         560   
  

 

 

     

 

 

  

Total non-performing assets

    $ 13,300       $ 19,046   
  

 

 

     

 

 

  

Mr. Miller continued, “Our Special Assets group continues to work toward reducing our non-performing assets. Non-performing assets have decreased 30% since December 2014 and 49% since December 2013.”

Civista Bancshares, Inc. is a $1.3 billion financial holding company headquartered in Sandusky, Ohio. The Company’s banking subsidiary, Civista Bank, operates 28 locations in North Central, West Central and Southwestern Ohio.

Civista Bancshares, Inc. may be accessed at www.civb.com. The Company’s common shares are traded on the NASDAQ Capital Market under the symbol “CIVB”. The Company’s depositary shares, each representing a 1/40th ownership interest in a Series B Preferred Share, are traded on the NASDAQ Capital Market under the symbol “CIVBP”.

This press release may contain forward-looking statements regarding the financial performance, business prospects, growth and operating strategies of Civista. For these statements, Civista claims the protections of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this press release should be considered in conjunction with the other information available about Civista, including the information in the filings we make with the Securities and Exchange Commission. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include risk factors relating to the banking industry and the other factors detailed from time to time in Civista’ reports filed with the Securities and Exchange Commission, including those described in “Item 1A Risk Factors” of Part I of Civista’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014. Undue reliance should not be placed on the forward-looking statements, which speak

only as of the date hereof. Civista does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward-looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.

For additional information, contact:

James O. Miller

Chairman, President and CEO

Civista Bancshares, Inc.

888-645-4121

Civista Bancshares, Inc.

Financial Highlights

(dollars in thousands, except share amounts)

Consolidated Condensed Statement of Income

 

     Three Months Ended
December 31,
(unaudited)		     Twelve Months Ended
December 31,
(unaudited)		  
     2015     2014     2015     2014  

Interest income

      12,976        11,623        50,701        45,970   

Interest expense

      815        872        3,309        4,104   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net interest income

      12,161        10,751        47,392        41,866   

Provision for loan losses

      —          —          1,200        1,500   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net interest income after provision

      12,161        10,751        46,192        40,366   

Noninterest income

      3,146        2,858        14,278        13,874   

Noninterest expense

      10,741        10,482        42,944        41,550   
  

 

 

    

 

 

    

 

 

    

 

 

  

Income before taxes

      4,566        3,127        17,526        12,690   

Income tax expense

      1,367        856        4,781        3,162   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income

      3,199        2,271        12,745        9,528   

Preferred stock dividends

      391        406        1,577        1,873   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income available to common shareholders

      2,808        1,865        11,168        7,655   

Dividends per common share

    $ 0.05      $ 0.05      $ 0.20      $ 0.19   

Earnings per common share,

         

basic

    $ 0.36      $ 0.24      $ 1.43      $ 0.99   

diluted

    $ 0.29      $ 0.21      $ 1.17      $ 0.85   

Average shares outstanding,

         

basic

      7,843,578        7,707,917        7,822,369        7,707,917   

diluted

      10,921,823        10,904,848        10,918,335        10,904,848   

Selected financial ratios:

         

Return on average assets

      0.97 %      0.75 %      0.95 %      0.83 % 

Return on average equity

      10.23 %      7.72 %      10.59 %      8.34 % 

Dividend payout ratio

      12.26 %      16.97 %      12.28 %      15.37 % 

Net interest margin (tax equivalent)

      4.09 %      3.95 %      3.96 %      3.79 % 

Selected Balance Sheet Items

 

     December 31,
2015		     December 31,
2014		  
     (unaudited)        

Cash and due from financial institutions

    $ 35,561      $ 29,858   

Investment securities

      196,249        197,905   

Loans held for sale

      2,698        2,410   

Loans

      1,001,527        914,857   

Less allowance for loan losses

      14,361        14,268   
  

 

 

    

 

 

  

Net loans

      987,166        900,589   

Other securities

      13,452        12,586   

Fixed assets

      16,944        14,400   

Goodwill and other intangibles

      29,504        23,745   

Bank owned life insurance

      20,104        19,637   

Other assets

      12,899        12,061   
  

 

 

    

 

 

  

Total assets

    $ 1,314,577      $ 1,213,191   
  

 

 

    

 

 

  

Total deposits

    $ 1,052,033      $ 968,918   

Federal Home Loan Bank advances

      71,200        65,200   

Securities sold under agreements to repurchase

      25,040        21,613   

Subordinated debentures

      29,427        29,427   

Accrued expenses and other liabilities

      10,806        12,124   

Total shareholders’ equity

      126,071        115,909   
  

 

 

    

 

 

  

Total liabilities and shareholders’ equity

    $ 1,314,577      $ 1,213,191   
  

 

 

    

 

 

  

Shares outstanding at period end

      7,843,578        7,707,917   

Book value per share

    $ 13.23      $ 12.04   

Tangible book value per share

      9.47        8.96   

Equity to asset ratio

      9.59 %      9.55 % 

Selected asset quality ratios:

     

Allowance for loan losses to total loans

      1.43 %      1.56 % 

Non-performing assets to total assets

      1.01 %      1.57 % 

Allowance for loan losses to non-performing loans

      108.93 %      77.18 % 

Non-performing asset analysis

     

Nonaccrual loans

    $ 9,890      $ 13,558   

Troubled debt restructurings

      3,294        4,928   

Other real estate owned

      116        560   
  

 

 

    

 

 

  

Total

    $ 13,300      $ 19,046   
  

 

 

    

 

 

  

Average Balance Analysis

(Unaudited - Dollars in thousands except share data)

 

     Three Months Ended December 31,  
     2015     2014  
Assets:    Average
balance		     Interest      Yield/
rate *		     Average
balance		     Interest      Yield/
rate *		  

Interest-earning assets:

               

Loans

    $ 996,861      $ 11,513         4.59 %    $ 898,197      $ 10,182         4.50 % 

Taxable securities

      138,131        793         2.32 %      145,169        833         2.31 % 

Non-taxable securities

      74,332        666         5.62 %      66,786        606         5.72 % 

Interest-bearing deposits in other banks

      9,473        4         0.17 %      6,748        2         0.12 % 
  

 

 

    

 

 

       

 

 

    

 

 

     

Total interest-earning assets

    $ 1,218,797        12,976         4.36 %    $ 1,116,900        11,623         4.26 % 
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Noninterest-earning assets:

               

Cash and due from financial institutions

      22,414             21,076        

Premises and equipment, net

      16,895             14,466        

Accrued interest receivable

      5,113             4,755        

Intangible assets

      29,622             23,839        

Bank owned life insurance

      20,028             19,561        

Other assets

      9,594             9,382        

Less allowance for loan losses

      (14,726 )           (14,939 )      
  

 

 

         

 

 

       

Total Assets

    $ 1,307,737           $ 1,195,040        
  

 

 

         

 

 

       

Liabilities and Shareholders Equity:

               

Interest-bearing liabilities:

               

Demand and savings

    $ 542,255      $ 107         0.08 %    $ 503,926      $ 97         0.08 % 

Time

      214,167        392         0.73 %      223,498        455         0.81 % 

FHLB

      59,289        116         0.78 %      28,373        128         1.79 % 

Subordinated debentures

      29,427        195         2.63 %      29,427        187         2.52 % 

Repurchase Agreements

      22,765        5         0.09 %      21,514        5         0.09 % 
  

 

 

    

 

 

       

 

 

    

 

 

     

Total interest-bearing liabilities

    $ 867,903        815         0.37 %    $ 806,738        872         0.43 % 
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Noninterest-bearing deposits

      302,849             260,382        

Other liabilities

      12,950             11,225        

Shareholders’ Equity

      124,035             116,695        
  

 

 

         

 

 

       

Total Liabilities and Shareholders’ Equity

    $ 1,307,737           $ 1,195,040        
  

 

 

         

 

 

       

Net interest income and interest rate spread

      $ 12,161         3.99 %      $ 10,751         3.83 % 

Net interest margin

           4.09 %           3.95 % 

 

* - All yields and costs are presented on an annualized basis

Average Balance Analysis

(Unaudited - Dollars in thousands except share data)

 

     Twelve Months Ended December 31,  
     2015     2014  
Assets:    Average
balance		     Interest      Yield /
rate *		     Average
balance		     Interest      Yield /
rate *		  

Interest-earning assets:

               

Loans

    $ 981,475      $ 44,784         4.57 %    $ 874,432      $ 40,032         4.58 % 

Taxable securities

      139,762        3,232         2.31 %      150,510        3,443         2.31 % 

Non-taxable securities

      71,674        2,583         5.70 %      63,613        2,356         5.80 % 

Interest-bearing deposits in other banks

      44,647        102         0.23 %      53,829        139         0.26 % 
  

 

 

    

 

 

       

 

 

    

 

 

     

Total interest-earning assets

    $ 1,237,558        50,701         4.23 %    $ 1,142,384        45,970         4.15 % 
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Noninterest-earning assets:

               

Cash and due from financial institutions

      34,616             35,784        

Premises and equipment, net

      16,081             15,262        

Accrued interest receivable

      4,476             4,242        

Intangible assets

      28,568             24,122        

Bank owned life insurance

      19,854             19,379        

Other assets

      10,181             9,133        

Less allowance for loan losses

      (14,689 )           (15,900 )      
  

 

 

         

 

 

       

Total Assets

    $ 1,336,645           $ 1,234,406        
  

 

 

         

 

 

       

Liabilities and Shareholders Equity:

               

Interest-bearing liabilities:

               

Demand and savings

    $ 543,986      $ 422         0.08 %    $ 501,408      $ 376         0.07 % 

Time

      223,099        1,665         0.75 %      227,682        1,916         0.84 % 

FHLB

      45,551        442         0.97 %      33,831        1,015         3.00 % 

Federal funds purchased

      68        —           0.00 %      41        —           0.00 % 

Subordinated debentures

      29,427        760         2.58 %      29,427        777         2.64 % 

Repurchase Agreements

      20,086        20         0.10 %      19,759        20         0.10 % 
  

 

 

    

 

 

       

 

 

    

 

 

     

Total interest-bearing liabilities

    $ 862,217        3,309         0.38 %    $ 812,148        4,104         0.51 % 
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Noninterest-bearing deposits

      340,360             297,003        

Other liabilities

      13,715             10,989        

Shareholders’ Equity

      120,353             114,266        
  

 

 

         

 

 

       

Total Liabilities and Shareholders’ Equity

    $ 1,336,645           $ 1,234,406        
  

 

 

         

 

 

       

Net interest income and interest rate spread

      $ 47,392         3.84 %      $ 41,866         3.64 % 

Net interest margin

           3.96 %           3.79 % 

 

* - All yields and costs are presented on an annualized basis

Supplemental Financial Information

(Unaudited - Dollars in thousands except share data)

 

End of Period Balances

    December 31,
2015		     September 30,
2015		     June30,
2015		     March 31,
2015		     December31,
2014		  

Assets

           

Cash and due from banks

    $ 35,561      $ 33,619      $ 35,092      $ 142,339      $ 29,858   

Securities available for sale

      196,249        198,655        197,429        199,693        197,905   

Loans held for sale

      2,698        1,223        4,034        2,919        2,410   

Loans

      1,001,527        1,000,275        1,002,917        984,105        914,857   

Allowance for loan losses

      (14,361 )      (14,760 )      (14,707 )      (14,315 )      (14,268 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net Loans

      987,166        985,515        988,210        969,790        900,589   

Other securities

      13,452        13,324        13,261        13,400        12,586   

Fixed assets

      16,944        16,200        16,308        16,163        14,400   

Goodwill and other intangibles

      29,504        29,683        29,608        29,790        23,745   

Bank owned life insurance

      20,104        19,987        19,870        19,754        19,637   

Other assets

      12,899        15,125        13,460        13,391        12,061   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Assets

    $ 1,314,577      $ 1,313,331      $ 1,317,272      $ 1,407,239      $ 1,213,191   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Liabilities

           

Total Deposits

    $ 1,052,033      $ 1,055,959      $ 1,075,806      $ 1,197,316      $ 968,918   

Federal Home Loan Bank advances

      71,200        72,200        55,300        17,500        65,200   

Securities sold under agreement to repurchase

      25,040        20,887        17,460        21,488        21,613   

Subordinated debentures

      29,427        29,427        29,427        29,427        29,427   

Accrued expenses and other liabilities

      10,806        11,521        19,257        22,581        12,124   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total liabilities

      1,188,506        1,189,994        1,197,250        1,288,312        1,097,282   

Shareholders’ equity

           

Preferred shares, Series B

      22,273        22,273        22,273        22,309        23,132   

Common Stock

      115,330        115,267        115,248        115,193        114,365   

Accumulated earnings (deficit)

      5,300        2,884        414        (1,924 )      (4,306 ) 

Treasury stock

      (17,235 )      (17,235 )      (17,235 )      (17,235 )      (17,235 ) 

Accumulated other comprehensive income (loss)

      403        148        (678 )      584        (47 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total shareholders’ equity

      126,071        123,337        120,022        118,927        115,909   

Total liabilities and shareholders’ equity

    $ 1,314,577      $ 1,313,331      $ 1,317,272      $ 1,407,239      $ 1,213,191   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Quarterly Average Balances

           

Assets:

           

Earning assets

    $ 1,218,797      $ 1,230,249      $ 1,246,731      $ 1,254,924      $ 1,116,900   

Securities

      212,463        210,209        211,553        211,521        211,955   

Loans

      996,861        1,009,372        991,487        927,105        898,197   

Liabilities and shareholders’ equity

           

Total deposits

    $ 1,059,271      $ 1,073,930      $ 1,133,432      $ 1,164,674      $ 987,806   

Interest-bearing deposits

      756,422        773,625        788,191        749,959        727,424   

Interest-bearing liabilities

      111,481        111,797        72,687        84,079        79,314   

Total shareholders’ equity

      124,035        121,057        119,212        117,021        116,695   

Supplemental Financial Information

(Unaudited - Dollars in thousands except share data)

 

     Three Months Ended  

Income statement

    December 31,
2015		     September 30,
2015		     June 30,
2015		     March 31,
2015		     December 31,
2014		  

Total interest income

    $ 12,976      $ 13,223      $ 12,740      $ 11,762      $ 11,623   

Total interest expense

      815        821        824        847        872   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net interest income

      12,161        12,402        11,916        10,915        10,751   

Provision for loan losses

      —          400        400        400        —     

Noninterest income

      3,146        3,076        3,652        4,402        2,858   

Noninterest expense

      10,741        10,666        10,933        10,603        10,482   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before taxes

      4,566        4,412        4,235        4,314        3,127   

Income tax expense

      1,367        1,159        1,113        1,143        857   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income

      3,199        3,253        3,122        3,171        2,270   

Preferred stock dividends

      391        391        391        404        406   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income available to common shareholders

    $ 2,808      $ 2,862      $ 2,731      $ 2,767      $ 1,864   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Common stock dividend paid

    $ 392      $ 392      $ 392      $ 385      $ 385   

Per share data

                               

Basic net income per common share

    $ 0.36      $ 0.36      $ 0.35      $ 0.36      $ 0.23   

Diluted net income per common share

      0.29        0.30        0.29        0.29        0.21   

Dividends per common share

      0.05        0.05        0.05        0.05        0.05   

Average common shares outstanding - basic

      7,843,578        7,843,578        7,842,159        7,758,998        7,707,917   

Average common shares outstanding - diluted

      10,921,823        10,921,823        10,921,824        10,907,674        10,904,848   

Asset quality

                               

Allowance for loan losses, beginning of period

    $ 14,760      $ 14,707      $ 14,315      $ 14,268      $ 15,445   

Charge-offs

      (525 )      (634 )      (305 )      (585 )      (1,341 ) 

Recoveries

      126        287        297        232        164   

Provision

      —          400        400        400        —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Allowance for loan losses, end of period

    $ 14,361      $ 14,760      $ 14,707      $ 14,315      $ 14,268   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios

           

Allowance to total loans

      1.43 %      1.48 %      1.47 %      1.45 %      1.56 % 

Allowance to nonperforming assets

      107.98 %      102.90 %      86.33 %      74.69 %      74.91 % 

Allowance to nonperforming loans

      108.93 %      106.57 %      88.80 %      76.81 %      77.18 % 

Nonperforming assets

           

Nonperforming loans

    $ 13,184      $ 13,851      $ 16,562      $ 18,638      $ 18,486   

Other real estate owned

      116        494        474        528        560   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total nonperforming assets

    $ 13,300      $ 14,345      $ 17,036      $ 19,166      $ 19,046   

Capital and liquidity

           

Tier 1 leverage ratio

      9.96 %      9.68 %      9.38 %      8.91 %      10.29 % 

Tier 1 risk-based capital ratio

      12.78 %      12.47 %      12.20 %      12.10 %      13.44 % 

Total risk-based capital ratio

      14.04 %      13.72 %      13.45 %      13.35 %      14.70 % 

Tangible common equity ratio

      5.75 %      5.56 %      5.29 %      4.79 %      5.80 % 
 GRAPHIC 3 g123704g05r87.jpg GRAPHIC begin 644 g123704g05r87.jpg M_]C_X 02D9)1@ ! 0$!+ $L #_X@Q824-#7U!23T9)3$4 0$ Q(3&EN M;P(0 !M;G1R4D="(%A96B 'S@ " D !@ Q !A8W-P35-&5 !)14,@ M0 9&5S8P 2D! M\@'Z @,"# (4 AT")@(O C@"00)+ E0"70)G G$">@*$ HX"F *B JP"M@+! M LL"U0+@ NL"]0, PL#%@,A RT#. -# T\#6@-F W(#?@.* Y8#H@.N [H# MQP/3 ^ #[ /Y! 8$$P0@!"T$.P1(!%4$8P1Q!'X$C 2:!*@$M@3$!-,$X03P M!/X%#044%]@8&!A8&)P8W!D@& M609J!GL&C :=!J\&P ;1!N,&]0<'!QD'*P<]!T\'80=T!X8'F0>L![\'T@?E M!_@("P@?"#((1@A:"&X(@@B6"*H(O@C2".<(^PD0"24).@E/"60)>0F/":0) MN@G/">4)^PH1"B<*/0I4"FH*@0J8"JX*Q0K<"O,+"PLB"SD+40MI"X +F NP M"\@+X0OY#!(,*@Q##%P,=0R.#*<,P S9#/,-#0TF#4 -6@UT#8X-J0W##=X- M^ X3#BX.20YD#G\.FPZV#M(.[@\)#R4/00]>#WH/E@^S#\\/[! )$"800Q!A M$'X0FQ"Y$-<0]1$3$3$13Q%M$8P1JA')$>@2!Q(F$D429!*$$J,2PQ+C$P,3 M(Q-#$V,3@Q.D$\43Y10&%"<4211J%(L4K13.%/ 5$A4T%585>!6;%;T5X!8# M%B86219L%H\6LA;6%OH7'1=!%V47B1>N%](7]Q@;&$ 891B*&*\8U1CZ&2 9 M11EK&9$9MQG=&@0:*AI1&G<:GAK%&NP;%!L[&V,;BANR&]H< APJ'%(<>QRC M',P<]1T>'4<=:AZ4'KX>Z1\3'SX?:1^4'[\?ZB 5($$@ M;""8(,0@\"$<(4@A=2&A(B>K)]PH#2@_*'$H MHBC4*08I."EK*9TIT"H"*C4J:"J;*L\K BLV*VDKG2O1+ 4L.2QN+*(LURT, M+4$M=BVK+>$N%BY,+H(NMR[N+R0O6B^1+\<-]1B)&9T:K1O!'-4=[1\!( M!4A+2)%(UTD=26-)J4GP2C=*?4K$2PQ+4TN:2^),*DQR3+I- DU*39--W$XE M3FY.MT\ 3TE/DT_=4"=0<5"[40914%&;4>92,5)\4L=3$U-?4ZI3]E1"5(]4 MVU4H5755PE8/5EQ6J5;W5T17DE?@6"]8?5C+61I9:5FX6@=:5EJF6O5;15N5 M6^5<-5R&7-9=)UUX7&EYL7KU?#U]A7[-@!6!78*I@_&%/8:)A]6))8IQB M\&-#8Y=CZV1 9)1DZ64]99)EYV8]9I)FZ&<]9Y-GZ6@_:)9H[&E#:9II\6I( M:I]J]VM/:Z=K_VQ7;*]M"&U@;;EN$FYK;L1O'F]X;]%P*W"&<.!Q.G&5&YXS'DJ>8EYYWI& M>J5[!'MC>\)\(7R!?.%]07VA?@%^8G["?R-_A'_E@$> J($*@6N!S8(P@I*" M](-7@[J$'82 A..%1X6KA@Z&I+CDTV3MI0@E(J4 M])5?EAMJ(FHI:C!J-VH^:D5J3'I3BEJ:8:IHNF_:=NI^"H M4JC$J3>IJ:H_ MR#W(O,DZR;G*.,JWRS;+MLPUS+7--:6YQ_GJ>@RZ+SI1NG0ZEOJ MY>MPZ_OLANT1[9SN*.ZT[T#OS/!8\.7Q7J#A(6&AXB)BI*3E)66EYB9FJ*CI*6FIZBIJK*S MM+6VM[BYNL+#Q,7&Q\C)RM+3U-76U]C9VN'BX^3EYN?HZ>KQ\O/T]?;W^/GZ M_\0 'P$ P$! 0$! 0$! 0 $" P0%!@<("0H+_\0 M1$ @$"! 0# M! <%! 0 0)W $" Q$$!2$Q!A)!40=A<1,B,H$(%$*1H;'!"2,S4O 58G+1 M"A8D-.$E\1<8&1HF)R@I*C4V-S@Y.D-$149'2$E*4U155E=865IC9&5F9VAI M:G-T=79W>'EZ@H.$A8:'B(F*DI.4E9:7F)F:HJ.DI::GJ*FJLK.TM;:WN+FZ MPL/$Q<;'R,G*TM/4U=;7V-G:XN/DY>;GZ.GJ\O/T]?;W^/GZ_]H # ,! (1 M Q$ /P#]Z#J=B=<;2OM*)J!BWK"3ARO]X#N!7Q[\0?VBO%7[._Q)MM/^+/A> M?7/AS?3D:?XSTQ&9X!G[ES$%(# $<@J#@G%>[?%O3-2B\&1^+?#I$7B+17$T M3XSOBY$B$=QM9JS-)O\ P1\?O@)J'A_Q)IL.JV=U;>1JVG3 J49E()4@Y4YR M0P.1C(KRZ&84H8]X3$+5JZ\UY>:ZH]CZE)X)8NGK!.TO[K_R?0[3P+\4? 'Q M)\.0ZGX)\6Z9XAMI!G%I=H[KCJ&4'((KO\CUK^<;X^?!#XI_L;_'-?$?@;7] M0L?"5W-MTG6[28@@L"?(FX +?*>#D$"OI/X%?\%-=0L8(-%^.6FMJD0V1Q:Y MI5HB2 ="TJ A3Z_(H[U]5/ R<%4HOF3/.=/2Z/VFHKS[X>?%'P-\4_!,.O\ M@?7[?6M/,_P!UAV/M7H&>:\IQ<79Z&-K"T444A!12$XKC_&OQ \'_ M [\$W/B+QGKUKH.D0CYY[F3:">P [D]!3BG)V6HTFSL./B#\8O'!U_Q[XEO/$$V[!DN&"I&,YVHB M@*HY)PH YKV<-EM:LUS:)_>:JF^I^Q^O_MW7'Q)^,-A\,/@+X;FO9]5O5L1X MENV*^2'8)YL4>W'RY)W,2O3BOTJTNUGL_#]G:W5[)J-Q%"J27,P >5@,%B M,GKP,5^5G_!.GX++:IJ_Q6U;3Q&HB%EH!*YN@K#\*J,93=HJX'I=%>2Z1\>/@[K^I1V>C?$71-1NG<(D<-V"Q8]J]6BE MCFA62)PZ$9# \&G*$X?$F@)**X[6_B%X)\.:XVF:[XFL-*OPBN8+B<*X5NAQ M[XK9@\0:+<^$/[?@U*"71?(,_P!L60&/RP,EL^F*.625[;C-BBN!M/BG\.[_ M %2"RLO&&F7-W-((XHH[@%G8] *[X'(R*)1E'XE80445@:]XI\.^%[.&X\0Z MQ:Z1#*VV-[F4(&/H*E)R=D!OT5S.@>,_"OBF6=/#NNVFL/" 91:RA]F>F:S- M3^)G@'1M=N=,U3Q9IUC?V[[)X);@!XSUP1VJN2;=K.XSN:*JV=[:ZAI5O?64 MZ7-I/&)(98SE74C((J=Y$CC+NP5 ,EB>!4"'T5Y-K?QU^#_AS5Y;#7?B'HVE MWD;E)(9[H*RL.H-:OAKXM?#7QA>I;>&/&NE:W.^=J6MR&)QUK7V56U^5_AR:GJ]_#I^GIC?<3/M09]ZXS_ (6]\,^&/_ $.^D_\ @2*/^%O?#'_H=])_\"A5>RJ_RO[@LST>BN7T M#QKX3\4W=Q!X=U^SUB:!0TR6LP8H"< G\JZ?(Q64DXNST$+17GL_Q8^&]M>R MVUQXSTN&>)RDB-= %6'4&NUT_4;'5M%MM1TVZCO;&XC$D$\39613T(/I52A* M/Q*P%VBBBH AEB6:V>*0!D92&!'45^<_BE->^#'[3%W>:4SQVTDYF@4DB.>) MFSL..O!Y]*_1W'.:^>?VA_!">(_A2VM6T>=1TD-+N4',L./IG\*^&XGP- M3$X)5Z+M4I>\G^9]IPSCJ>&QOU>NKTJONR7Y,Z:WN? GQW^ >H:-JMI;ZOH^ MH0>3J&GSJ&,1&"#AAPP(!# <$ BOY_?VK/V5/$_[/?Q3EN;2VN-6^'FHS.VE M:J$!$7)/DRD'A@".2!GMT-?H3X!\=ZQX"\9PZIILS-;'Y;FV)^293V.>_ .? M:OT$FM/ ?QT^ UQIVMZ=;>(/#NIVYBN[.?DQDKR,@Y1AV((((KMX4XJ6.I\E M32:W7?S1U<09%5R;$<]/6C)Z/MY,_E<\*>,/%/@?Q;!KOA'7K[P]JL60MQ87 M3P.0>JDH1D'N#Q7ZI_ K_@IG?V<]AX?^-.CQW5F9%1O$-B'$D:XP6DC4-OZ9 M^4 U\@?M6_LL^(OV=_B>\UNLFJ?#_4)L:3J@C;"$@MY,AZ!AAL#/(&>QKY&Q MGW!K]CE3H8J";5T?'M*2N?UL_#_XM?#KXI>&H]6\!^+-/\16CKN(MIQYB>S( M?F4^Q%7/''Q*\"_#?PM/K/C?Q1I_ARPB0N7O)PI;V5>K$XX &37\I'A#QYXS M\ ^)DUCP9XGU'PUJ2@CS["Y:)B#U!QU!QT-6_&_Q*\>_$CQ"NJ^.O%FI>)[Y M4\M'OKEG"+DG:HZ 9). .]>5_9:<[\VAE[)7/U:^.W_!36*.XOO#_P $M(CN MD#%!XCOPX5AC[T<1"D'.?O9K\F_&OC[QE\1/&4FO>,_$5_XAU)N%DO;IY1$N M2=B!B=JY)X&!R:Y# ]JV-(TB34;K]U&X$44:8&%ZLW) &%!. M37(10QP6Z11((XU& !7ZN_\ !.WX-I(FJ_&36+0;DEDT[1"ZL",*IEE7^%@= MVT'G!5O>O4Q%2.!PKJ=3&3;/TT\">$=.\!_"'PYX0TI%2QTG3XK5&"!/,*J MSD#CH>$O &IW&C>"[5Y+=KFQN7CDU+YL;BPP=A ^[Z'FO)/AQ^R;\;?BCH$>O:5 MX:DL]%N%WQ7^H31P^>#_ !*KLI8'U IW[)'POM?BE^V5X=TW5;876@6$OVS4 MHW!*R*BLZHV.S%,5_0I9V5II^F6]E90):VD"!(HHU"JBC@ "OL<7BXY6E0P\ M5>VK9;T5C\)=:_8*^/NE:-)=V6C6NKM&N3#!?P*Y [ &3D^PYK].OV,_"WBC MP;^PQH_A[QAI5WHVMVNIWHDM;U2)$7SCMZ]B.F.,5]4D9H Z5\_BOTV_9=TJSUS_@F5X,T:_C\RQO]"-M M1X]K#\B:_,K_ (*"?\I#;S_L 67\GK]2/V1?^4?'PY'_ %#4_D*]7&.V M546BW\)^#'B;0M:^%7[0M]HUT&@UC0=2&&Z89"&!!'\Q7]'_ ,,/$]MXS_9\ M\&^)[602QZCI$$Y(;=\QC&?V'^T5I/CJRM!%8:U9+%@:@C6_F-SY$J85 /1?*_P#' MJVS&V+R^GB%NMR7L?H?7XI_\%$O'Z^(/VE/#_@VTF66ST#3G>;8Q_P!=,^&5 MO=1$,?[U?L[J=_;Z5X?OM3O'\NUM8'FE;^ZJC)/Y"OYNM)/$_DQR'G8DDVW.!V"G/%<.2TE*O*K+:*_,<>Y^L_[ OP[3PM^R#'XLN(' MAU/Q)<-*=R@9AC9EC]^N[K7Y@_M;\_\ !13XH^VJ_P#LBU_01X1\.V7A+X8Z M#X:T^%(+33K*.!$C&%RJ\D?4Y/XU_/O^UM_RD5^*7_85_P#::UW955=?,*E1 M]5^J!:L_<[X"_P#)F'PR/_4O6W_H K\M?VY_V@/$&O?'.^^&'AS59K#PMI4* M1:@+:X9?ML['<=V" 5"E!CUS7ZE? 4_\87_#/_L7[;_T 5^#O[2NBW_AO]N7 MQU8ZBF9QJ'GKD';(K ,",]1V^H-8972IU"W.^^%O[&'Q>^)W@FT M\30V4/A_0KV$2V-S>R)FX4]"$WA@".02,5M>*_V$OCSX:CDN](TB'Q/!$ WF M6-U$LGX(7W$_0&OT[_9@^.G@'XA_L^^$?#FE:E!8^)-(T6VL[O2II%23=%&L M99%SEE)7.<=Q7U4,?C2KYMCJ-9QE%)=K!>Q\4>+?A9XZ\<_\$E/"_P /;/39 M$\9#2+1)K2^D6*1'2+#*QD(P03W-?GE_PP1^T+C_ )%ZSQ_V%K7_ ..U^\V! MFBO-H9GB,.FH)6;N*Y_+5XK\*:KX-^)6K>$];B6#5].NFMKJ-7#A74[2 02# MSZ<5],:!^Q%\=O$G@O2]?TO0K273M0MDN+=VU2V4LC#(.#)D<'N*\X_:/&/V M]?B3CG'B2?\ ]&FOWX^#./\ AE#X>8_Z -M_Z+%?5X_'5\/AZ=2%KR[^A;;2 M/CG]BS]G7XE_!/XD^-M2\=:;!8VNI:=!!:M%>PS;F5V8C".Q'!'6OK3XZ_$6 M#X6?LP^)_%[S)#=V]L4L=_(>=@0B_B:]=P,U^47_ 4>^)0+^%?A=93G@C4M M15"/1E1&]#R&_*OE:/M,QQ\7/=[V\C/=GY:?9-1O+"]U;R)9[>.0?:;D@E59 MCQD^I)K]J/\ @GQ\2(_$G[+5UX&N95.H>&IR(PSDN\,CLP.#V7(6OGKX/_ = M=;_X(V_$S5+NPC_MS5F.HZ<\D1\Q5M@KHJGKAMO;CFO#/V*_B.WPZ_;7T^PO M)I(M.UU?[+N(U( :1G4)G/H^*^JQGL\;A:L8+6#_ "+:/WY[44@.:6OSPS"H M;B"*XL9;>90\4B%74\@@C!!J:D/2I<5)-/9C3:=T?EC\4O!TG@GXP:CI05OL M;$2VCD_>1N>OUJ;X:?$?5/AWXP6YM<2Z9<.HOH&&0R \D?[0!.*^MOVCO ZZ M]\+AXBLH=^IZ8RE@JDEXB<,./3.?H*^ .-A%?S'G.&KY%G+E0?+UBUV?0_IW M)<50X@R10Q"YK>[)>:Z_/<_4C4=.\#_&OX$W6DZI;P^(/"VJQ;9HI%[@Y'!Z M,K $'L0*_GG_ &K_ -E3Q+^SS\4FN;6*;5?A[J,C-I6J<-Y7S?ZF7&,. 0C M:[8VOB+PSJUJ59' ? 8?>4_PL,Y!'((%?OO"W$T,PHW>DU\2_5'XGGF25\DQ M5MZ*&."!8HE"H.@%)%#%;VZ11((XU& *E[5]!2HJFO,QD[G M5>"/"FH^./BYX>\)Z3 ]Q?:I?1VZ)'C.&8 GGT%?TP>!/!VD^ /A/H?A#1(A M#IVFVPBC"J!N/5F..[,23[FOS _X)X?!W[1KVM_%O6[+=#!&+/1!+$?OD[I) M5SP<;4 (Z'=7ZW5\)G6*]K7]E%Z1_,QD]0HHHKYD@*_-S_@I,2/V<_! !X.M MMD?]LS7Z1U\/?M\^#+CQ/^Q-)JMG 9[G0]1CNR%0DK&05<^P Q7IY=*,,;3; M[C6Y\Q_\$SHH&^*/Q1E.#<+IUF%!'('F246)X"AV!//2OW[CDCEA22-PZ,,JP.00:[N0?A)_P4$_Y2&WG_8 LOY/7ZD?LB_\ */CX<_\ 8-3_ -!%?EO_ M ,%!/^4AMY_V ++^3U^I'[(O_*/GX<_]@U/_ $$5]9C?^131-'\)A_MH> 9O M'W[!GB6"QA:XU/2)H=4M%4C_ )9MMDZ_],GE_2OR^_8>^(/_ A'[;.EZ;<2 MK!8^(4_L^8N#@,>4_'< /QK]XM3T^TU7P]?:9?0K<6=U T,T3CAU88(/YU_- MMX]TC4O@W^VQK5K;AH;OP]XE-Q8LJE0RQS[T(SV.T#TXJ\I:Q&%J8:7JOF2N MQ^S_ .VOX^;P)^PKKOV6?RM4UJ[ATVUP>?G)>3_R'&X_&OS\_P""??PS_P"$ MI_::O?&UW;EM/\+QJT4@(PMQ*&"#G_95^GM5;]N/XOP_$#Q=X&T32KTSZ3;Z M+#?N$D#(\LH(R<=UPP_&OT!_8D^&:?#[]C#3KZ>$)JOB1UU*Y8J0ZH441QG/ M]WYS_P "I-/ Y2U]J;'LC[#K^=/]K;_E(K\4O^PK_P"TUK^BSM7\Z?[6W_*1 M7XI?]A7_ -IK660_[S+T_5!'<_<_X"_\F7_#/_L7[;_T 5XK^U'^RMIWQVLH M/$&DW8TKQS86?V>VD8@17*!BXC?C/5FPU? 3_DS#X9_]B_;?^@"O7:\ M/V]7#XJ52F[--B;LS^:?XA_ _P"*WPAUPGQ9X7O--ABFQ!J$)$ENY'(*R(2, MXP<9S7T%\$_VX?B/\/;S3]&\7S_\)=X467$INRS7<*$8^1\\@8X!XK]PM6T? M2]N:^MPF-HYF_85X:CO<_<3P;XPT+QW\-M(\5^&[Q M;[1]1MUF@E (X(Z$'D$'@@CJ*ZFOST_X)S:Q?ZE^R?XEL[NX>>WT_7/)M49B M1&AC#$#T&2:_0NOC\516'Q,J2>S(/YN_VCS_ ,9Z_$K_ +&2?_T::_?CX,_\ MFH?#S_L VW_HL5^ _P"T?_R?K\2?^QDN/_1IK]^/@S_R:A\//^P#;?\ HL5] M/FW^Y4?ZZ&LMD>A7UY#I^C75]<,$M[>)I9&)Z*HR:_G+^+GB'4OCC^WAXAOM M)#7=QK6L+9Z6GJB[8HA^2BOV6_;$^)"?#O\ 8C\5&WN!#K&LVYT^P ?:_P"\ M(1W7W57S7X->$;WQ7I7C*V\0^$X+MM7LI1+%<6MNTC1.,8;@'G.*O):#C3G7 MV>R%%=3^F+PMX6L/#'PAT3P?9J1IVGZ;'91Y SM5 O/O7\\WQ_\ "-Q\+/VX MO&>BV*/9QV6K&ZTYFQGRWQ+&W'LP-=Z/VC/VK.H\2>)?_ 63_"O$OB'X@^(? MC/Q0?$WQ &HW>HNJQ&]O;5D+@ L0,\*!^%=N7X.OAJTI3DFI;@DT?T5?"' MQY:?$K]G?PQXPM6C)OK-&GCC)Q%)@;D.>X->E5^97_!.3XBK?_"_Q/\ #>[G M+W>GW9O[)"PXA<*& [_>Q7Z:CI7QF,HO#XF5/M^1#"BBD/ S7"(Y/QOJ]GHG MPSU2]OD62#RC'Y;#(D9OE"X^IK\YI_#FE37DTWENF]RVU9.!DYQ7TS\I^#_ -RM]*\<-Y(LT-JTF[RAC MK[$\<>U2' M4O'U_;.+*T28'[&/NB60#. #T'&2/K7W/!/#6*56.,JWYI?"O)]6?-\49\L6 MG@J3YHIZOS7;_,Y/]M;XV?#_ ,*_ /5OAWJME;>*?$NL($7295++;KC<)G(/ MRD'&T9SD],9K\ M2N=4T?:L B%ECY"(^G/>O3_$WB?7/&'C>_P#$7B+49M4U M>\E,D\\\A9B3V!/8#@"N;FACG@>.9%=&'(/:OZLPF 6%H\L7[W5GYI%\IY__ M ,)+JO\ >B_[]TA\2ZKS\T6/]RHM7TF339]ZYDMF;Y6QT^M8W45E*=6#LV=& MC/Z7?V(?B)X9\=_L#^$+;0HTL[W1+<66JVB CRYP22W/7=G=D<*^$Q MM%TL0[]=3DG&TAU%%%>>9A5#4],L=9T&[TO4K=;NPN8S'/"_W74]0:OT4;,# M^?C]H[]ESQ?\%O'UUJ6F6,VK>!9Y&EL=0A/F&W7=PDN!E2,KR1@^M;'PI_;< M^+7PQ\)V7AZ9;/Q3H=G'Y=O;ZC&1)&O9?,4YP.PQTK]X[S3[+4=.EL]0M(;V MTD&'AGC#JP]P:^??$_[)WP'\5:B;N]\!6%A+AS%W74_/#6/^"D/Q*O=&>'2/!NB:-=G.VXWR38_P" L<5]G?L7_%#QI\5_ M@WXF\1^-M2.H:@=2"Q;8PD<:_/\ *B]AP*Z_1?V.OV?]$U-;I/ UMJ3*&- ATKP]I-KHVFQ#$=M:0K&BCZ"N+%8G RH\F'IV?<5T M?A]_P4$(_P"'AM[_ -@"R_D]?J1^R*1_P[Y^''_8-3_T$5Z%XL^"7PF\=^+V MU_QC\/\ 1?$>LM"L+7E]9K)(47[JY/89-=OX?\.Z)X5\)V>@^'-+M]&T:T0) M;6=I&$CB4=@!TK*OC85<%"@EK$+Z6-OM7X\_\%'?ARFF_$_PE\1[&%@FJP/9 M:@_\*R1[3'@>X9R?I7[#5R?B[P+X/\?>'8])\:>'+'Q-IL#XQ)=R7MRL) /*PKEWQ]%#& MOZ8=)TZ#2/"VFZ5:C%M9VL=O$,?PHH4?RKSCPQ\#/A!X+\8V_B#PI\.]#T'6 MX%98;VSL525 PP<-U&0<5ZN!@8KKS''+&SCRJR0V[A7\Z?[6W_*17XI?]A7_ M -IK7]%E>0:_\ ?@QXJ\77VO>(OAKH&L:S>/ONKRZL%>65L8RQ/7@"HR[&0P M59SDF[JPD["_ 7_DR[X9_P#8OVW_ * *_*O4OVTOC3\,_P!H#Q=HLEU;^(]% MM]9F\NVU.#+J@; 19!R%XK]H=+TG3M$\-V6CZ1:1:?IEI"(;6VA7:D2 8"@= M@*X+Q;\&?A;XYF,WBOP)HVLW.TJ)Y[%#(.<]<5.&Q.'A5E*M#FC+\!W/S1F_ MX*5^)CI++!\/--2\*8#&YD* _G7Q+XS\7_$7]HW]HF/5;VT.N>)[Y$M;2TL8 M<+'&F2%4=@,L2?E>T^"_@_P## M7X>1_P#%'>#=+T.;.6N+>T42L?4MC->O3S#+\->6'I^\PNC@?V8_@]-\&/V7 M-)\/:@$'B"Z NM6$;[E69A]S(X.T84D<''%?1'2BD(R*^7J3E5J.? MM'<_M[?$H#D_\))/_P"C37[[_!DC_AE#X>?]@&V_]%BLG6/V?/@GX@\4WFN: MU\,M U/5[N8S7-W<6"M)*Y.2Q)ZG->J:=IECI.@VFEZ9:QV.GVL0BM[>%=J1 M(!@*!Z"O6QN.IXK#TZ<4TX_Y%-W/QA_X*%_$E/$O[1&C^!K&X\RQ\/6[&X Y M'GR=>?8 #ZU]?_L$_#2W\+_L=0^*KRW4ZKXFN'N&\Q:UKGPST#5-6NY&EN;NYL5>25V.2Q)ZDFO4='T;3/#_AFQT;1; M&'3-*LXA%:VMNFR.)!T50. !3K8^$L%'#4DU;<+EO[):_P#/M%_W[%?.'[5? MPQB^(W[&?BC3;2VC&I6,)U"U*C:Q:)2VT$#OTKZ7IDD:2P-'(H=&&&5AD$5Y M5*K.E44T]A'\ZG[*_P 0O^%:_MO>#M7NYQ!I=Q3_NLRM^%? MT46\\5S8PW$$@DAE0/&XZ,I&0?RKQ%?V9O@"EV)E^$OAM9=VX,-.4$'KFO;; M:V@M-/@M+:)8;>&-8XHU& BJ, #Z 5Z.8XNCC:BG"-FE9@WUE. EF..C16V[]$>!WU]<:EK%S?7LP/'HT1 M)B1AC[0WX_P]>:/VFOVF] ^!7@'^Q-"-KJ/CB[MVCL;!9.+,8PLD@'0#/"Y! M.*_,N$>%J^8UUC<5%N^L4^O]Y^1^@\09Y&C%X'"/5:-KHNR_4=^T_P#M/Z%\ M#_ \FC:/(M_X_ND465DJ!DME/623G@ =!SDD=LD?A'XE\2:UXN\:ZCXA\07\ MFHZM>RF2>:0\DDYZ=ASTH\2^)=;\7^-+_P 0^(=0EU/5KR3?-<3.68^@R>P' M%5=)T;5]>UR#3-$TRZU?4)FVQ6UG TKL3T^51FO[$P."I8&GI\75_P!=#\H5 MKZF9CC% X%?H3\&/V!/&_C%(-7^)-Q-X'T5TW+:!%>\DYX!&<)D=SD^U:7QD M_P""?GBKPO;3ZO\ "^_F\8:='&7?3YT5+M,$\*GM7L>N^'M>\,Z]-I7B+1 M[S1-2B)62VO;=HG4_1@,CWK"FABN('BE0/&1C!%=E2G&K&Z*BW%GD]K))9,Z[9.VG:Q&1@K/$!S M[[D9&S_M>U?S+ZMI$NG7)= 7M6;Y6QT]J^WO^"?GQO?X8_M=VWA;5[Z.U\)> M*,P7+32[8X9PN8WZX&< $]^*^3S##N=+S1I-A(K\U/"FA?%+6? MVD_VHA\//%EAX6M8]6NO[3:\B.YP7EP58,-O&>3FO4OV:_BMH7P\_P""7'B? M6C:QVEYX9N[F*>6:??'J%TSNZ[3@<,^'/CN'P9X MFA\;Z+XG_MG4M;O=%FCM+F*1E^4S%>G+OM#]L74=*\>_ O]G/4LQWV MCZYXOM7;'*21RP'('MS6L\!2CBJ:2]UZ/7JA6U/J_P =?'+PIX-_9QLOB; D M^OZ!=S6\=N;)5+/YTBHIPS+C!;GFI/B=\<_!GPF^$VE>*O%!NW74PJZ=864 MEN;F1D#!%4L!GDM?EA\27\0_!?X?>)/V'M3^%_BCPFMW#+-;7^H6<:V MX5!NP["4E6(!XQUQ7%W_ .V+HLWQ$U[2/"'PY\6>,M/T*Z:WU6_T^PB*!E)! M\L&8%ONG&0#Q7UT;[3W\B(7D!:X4^0HE7,@P2=H[\ GCTK\UO'?@7XA_LOZM MXL^,'PD\86>O>!;W4#>ZSH5^P" F0_*I5L,?G(SC(]*YL/"A7FTXV?17=K^H ME:Y]G_%+XV:-\+M+\$W.J:3?W?\ PDFJV^GV\<,:;H6F5B"X9QC&W!QFKGQC M^,&C_!OP)I6O:SIUWJ4%]J4=DB6:H65G[G));-KRST^-IKAK2*/>X$ M: DY8(>G\->>?!SQ_IG@W_@IE9Z9I>@:WX1\)^,M+BMS;:]ISV&^[@5U#JK M!@%V\CNWTJ(8%2PDI_:U:]%_G^@K:'U+XV_:FM/"O[1.M_#;3/A_XA\6:UI= MLMQ)?%_AZTU*S_ + \U=5T MW4K=8KF%XXO,(VJ[*)KA6T/X2>,=2L#=_ M9S=P6,+Q@AMI.1-VKU3XJ_M':)\-_'NA^"[3POK?BOQOJVGB_M=+TVU1MD!9 MUW2,TBXYC<<9Z M,9^E?0?Q]^"/B'QA\:M(^*?PS\;)X:^)>A:0+1+:20".>V#R/\Q!#+DR./0X M'3%%6CA*>+]F[65^KWZ7#2Y[K\+?B/)\2/!EUJ4_A36?"-W:W'D7%IK%LD3% ML9RFUV#+[^M>GU\F_LR?'?6OB?X"\6VGCNTL]*\0^$[]K'5+ZWDVVLQ4LI<, M20.5/\1'?/-?5%I>6E_8QW5E=17MK)S'-!('1OH0<&O&Q%.5*JXM6M\R6CR' MXC?&C1_AU\9OAIX+O],O+V^\9:H+"SFMU4QP,65=SDL"!\W8&N3\??M.>"?A MQ^U9H7PM\26E];W.IVLD:-:K*Z*1D,Y9U XQTR>:_/+P;\0_$GC+]OG M]GWPYXUM&LO&'@V];1-160'?+Y3%1(D+O\ EA*K&6[^7Z5M+ TZ-G)7M&]D]]?RL.Q]?_"3XH7/ MQ.\.:K=7O@[6/!EYI]T+>:VU>W6,RDINW1E7;N552ZM#<2QK<1&6(9 MD42#*#&)M.\/E&@\-QGS[^X7 9F&=L8SUSD'IVKQKX[?'>Q^#?@V MU\%?#_3!XF^(=U"8-.T:UC:4VV5 664(.!DC@D9]NM?&5\HJY]FD%47[FET_ MFEUOY(^IPN-CEN"DJ+_>U.O\L?\ -E/]IC]I;P[\!/AP= T)5N_'%U"JZ=91 M*OEVJG.9)/0 X&"2<=LD?AKJ^K>+/B/\3KO5;][SQ%XBU*X+.40R.[,2< # MH.>G2OT*\ ?L1?$KXK^-[GQK\=]:NM":]2GC"YR508R1UZ=*_2' MX8_ CX:?"315M?!_AV*WN<+YM_<8EN)2!C<6QP?H!7[%1Q&!RJE[.E[T^MMO M^&/FFTVVS\LO@W^P#X[\7166M_$.^M_".@N-WV%2TE]*,\ C 5 1SG<3[<\? MJ9\,_@/\+_A/I2P>$/#%M;77!DOIU\VXD8#&[>V<=^F.M>Q#I2UX>*S#$XI^ M^[+LMB+A1117EB/+/B/\%_AM\5=#:R\:>%[34GY,=VJ^7<1MC&1(N#T]>0AP5?CU*U^R5%>EAL?B<*_ M<>G9[#N?RL>(O#.JZ%K-UHWB/29]-O8G:.6"YA*D$<'KU^HKR>]L;O0M;@OK M20H(Y%D@E0G*,#D5_5E\1?A!\/OBGX;DTSQGX=M]20YV7 79-$2,;E<=Q[Y' MM7Y=?&K_ ()W:YI-GNI^@7[*GQAL_C/^QMX3\0_:SF"7P6Y& M *_>1<$9%?)XRA["NUT>QG)6>@M%%%>>R#Y;UO\ 9%^%.N>/?$'B*>37K+4- M:N7N-1%CK4L$K6(?PY>V7V26W MC.W:F.-I[$<$'VKSN\_9X^'VH_"SP'X/O8K^?1?"%\EYHRM>'?&Z A0S=P < M8KW>BLHU:L=I/>_S[A<\>^)_P.^'WQ=ET:;QCI;W5WIF44*K5224G[N MWD(^<_A]^S+X#^'/Q%L?$^D:KXCU'4;.*2.V35=3>,/@QX%\;:#X4TS5=/DAL?#E]%>:7#:2F)8I(P0O ZCYCQ6E\1_A?X7^*? MA6PT?Q9!-/9V=ZEW ()C&1(G0Y':O1Z*Q56K=--Z;!<\FD^#7@J7X^:)\1Y[ M:YN?$6D:>++3C)<$Q0(%"Y"=-V.,T_Q_\'/!?Q)\9>$_$'B2UF;5O#MP9],N M+>BM\@N>8Z9\)O"&D_M$:W\4+6WF_X2K5= M/^Q7DCS%HVBRAP$Z _NUKF- _9Z^'?ACXC>*/$F@VU[IZT=Z/;5OYGV^079\GZ;^QU\*='NTETJ]\3:>BS^>(;?Q#-' M%NSG[JD#K78_$']G/P1\2/&,&NZQJGB'3=02Q2S+:5K4MLLD:%B-P4X)^8\U M[_16KQ.( /A)I<-OJFLVDB-<:A=OOFE<8\R2 M0!B6&<]*]'^#G@.[^&G[./ACP9?ZA_:E]I\#"XN0S,'=F+M@MR0"<#..!7J% M%3*O5G#DD[W=_P! N>9>,_A/X3\=_$GP5XLUZ">75_"M\+S27BG*JD@96^8? MQ#*BI9?A=X5E_:3M_BLT$Y\6PZ8=/27SCY?DDGC9TSR>:](HJ/:5$K7\OD%V M>(ZC\ /AMJ7[2VF?%F729(/&%BXDCGMYBD6 MX72K5G:,7-PTSY=BQRS<]2:[&BLY5)S=Y/<04445 #2H*D>HKA=%^&W@S0?% MU[XCM-#MI_$EW)ON=6ND\ZZU%%2Y2@O==@.Z'-.HHI1V ** M**L HHHH **** "D/W31128'F?COX0_#SXB1Q2>*?"]C?ZC XDM=1$ 6ZMW' M*LLH^8$$ CG'%>B6=O\ 9-.AMS,]P8T"&60Y9\#J?>BBJYI.*3>PRS1112$% M%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 44 )44 %%%% '__9 end