Exhibit 99.1
- ------------
April 22, 2002
FOR IMMEDIATE RELEASE
- ---------------------
MONTEREY BAY BANCORP, INC. ANNOUNCES:
FIRST QUARTER 2002 RESULTS;
RECORD LEVELS OF INCOME, ASSETS, LOANS, DEPOSITS, AND EQUITY
Common Stock Symbol: MBBC
NASDAQ National Market
Watsonville, CA. April 22, 2002. Monterey Bay Bancorp, Inc. ("Company"),
the holding company for Monterey Bay Bank ("Bank"), today reported record net
income of $1.21 million, equivalent to $0.35 diluted earnings per share, for the
quarter ended March 31, 2002, compared to net income of $602 thousand, or $0.18
diluted earnings per share, for the same period in 2001. Net income during the
first quarter of 2001 was impacted by (pre-tax) operating costs of $408 thousand
for the Bank's core systems conversion that was implemented in March 2001. Net
income for the quarter ended December 31, 2001 (the immediately preceding
quarter) was $1.14 million, equivalent to $0.33 diluted earnings per share.
The first quarter of 2002 earnings were the highest of any quarter in the
Company's history. Return on average stockholders' equity improved from 5.55%
during the first quarter of 2001 to 9.37% during the first quarter of 2002. At
March 31, 2002, the Company had record levels of loans, assets, deposits, and
stockholders' equity. Tangible book value per share increased from $14.08 at
December 31, 2001 to $14.48 at March 31, 2002.
During the first quarter of 2002, the Company continued the implementation
of its strategic plan of transforming the Bank into a community focused
commercial bank serving the financial needs of individuals, families, and
businesses. Key accomplishments during the first quarter of 2002 included:
o progress in shifting the composition of the loan and deposit portfolios
o an expansion in net interest margin
o increased local commercial banking business
o the opening of a loan production office in Los Angeles focusing on
construction and income property lending
The Los Angeles loan production office is managed by an individual with many
years of local lending experience and expertise in the type of relationship
banking conducted by the Company.
Net interest income increased from $4.8 million during the first quarter of
2001 to $5.4 million during the first quarter of 2002 due to both expanded
spreads and greater average balances of interest earning assets and liabilities.
The Company's ratio of net interest income to average total assets was 3.98% for
the first three months of 2002, up from 3.83% during the same period in 2001.
The increased spread in part stemmed from the Bank's continued implementation of
its strategic plan.
Monterey Bay Bancorp, Inc. Page 2
Press Release
April 22, 2002
The Company recorded a $325 thousand provision for loan losses during the
first quarter of 2002, down from $500 thousand during the same period in the
prior year. Net charge-offs during the first quarter of 2002 of $32 thousand
were primarily associated with business loans. The Company's ratio of loan loss
reserves to total loans increased from 1.41% at December 31, 2001 to 1.46% at
March 31, 2002. The rise in this ratio was due in part to a shift in the
Company's loan mix away from its historic concentration in residential mortgages
and the establishment of a specific reserve for a loan secured by a hotel within
the Company's primary market area, as subsequently discussed.
The Company continues to utilize the formula general valuation reserve
factors adopted in the fourth quarter of 2001 for hotel / motel real estate
loans and its "Business Express" small business loans. The general valuation
reserve factor was increased in the fourth quarter of 2001 for hotel / motel
loans due to the particular economic difficulties being experienced by the
hospitality industry stemming from the national recession and reduced personal
and business travel. At March 31, 2002, the Company had $22.0 million in hotel /
motel real estate loans outstanding, down from $30.8 million at December 31,
2001. This decrease in part resulted from the Company's not repricing certain
hotel / motel loans to reflect the decline in general market interest rates
during 2001, thereby leading the borrowers to refinance with other lenders. The
Company's Business Express portfolio experienced historically high charge-off
rates in 2001, resulting from the nature of these loans, which were extended to
smaller and less established local businesses. These businesses often have less
financial strength than larger and / or more established businesses, and thus
were disproportionately affected by the US economic recession. At March 31,
2002, the Company had $482 thousand of Business Express loans outstanding, down
from $543 thousand at December 31, 2001.
Non-accrual loans increased from $2.3 million at December 31, 2001 to $4.5
million at March 31, 2002 primarily due to the placement of a $2.3 million
commercial real estate mortgage on non-accrual status. This credit is a
participation loan where the Bank is not the lead financial institution. The
loan is secured by a first deed of trust on a hotel / resort located within the
Company's primary market area and is guaranteed by the borrower. The hotel is a
relatively new development that was experiencing limited cash flow. The hotel
was also adversely impacted by the decline in tourism and travel following the
events of September 11 and the onset of the national economic recession. The
Company is currently working with the lead bank and the borrower to address
collection. At March 31, 2002, the Company established a $754 thousand specific
reserve for this loan, based upon estimated net proceeds to the Company
following foreclosure and sale. The market value of the hotel is particularly
volatile at this time, given the uncertainty regarding the economy, the tourism
industry, and the outlook for business travel activity.
Non-accrual loans at March 31, 2002 also included two loans secured by
first deeds of trust: a residential mortgage with a principal balance of $846
thousand and a commercial real estate mortgage with a principal balance of $846
thousand. There are significant junior mortgages from other lenders secured by
the real estate collateral for both of these loans. The home securing the
residential loan is listed for sale and the borrower has agreed to resume
payments to the Company. The Company is in the process of foreclosing on the
underlying collateral for the commercial real estate mortgage. Based upon a
review of comparable recent market sales, the Company, at this time, does not
anticipate incurring a loss on either of these two loans. The Company had no
foreclosed real estate at March 31, 2002.
Monterey Bay Bancorp, Inc. Page 3
Press Release
April 22, 2002
The special residential loan pool that the Company purchased in 1998 has
continued to pay down. This pool is comprised of loans that present a borrower
credit profile and / or a loan to value ratio outside of (less favorable than)
the Company's normal underwriting criteria. To mitigate the credit risk for this
portfolio, the Company obtained, at purchase, a scheduled principal / scheduled
interest loan servicing agreement from the seller. This agreement also contains
a guaranty by the seller to absorb any principal losses on the portfolio in
exchange for the seller's retention of a portion of the loans' yield through
loan servicing fees. While the seller has met all its contractual obligations
through April 20, 2002, the Company has allocated certain reserves to this pool
due to concerns regarding the potential losses by the seller in honoring the
guaranty, the present delinquency profile of the pool, and the differential
between loan principal balances and current appraisals for foreclosed loans and
loans in the process of foreclosure. The original balance of the special
residential loan pool in 1998 was $40.0 million, which was paid down to $4.5
million at March 31, 2002. In April 2002, the Company received approximately
$396 thousand in additional principal repayments associated with March activity.
As of March 31, 2002, there was one foreclosed property within the special
residential loan pool. The Company reports all loans within the pool as
performing due to the scheduled payments provided by the seller.
Non-interest income totaled $512 thousand during the first quarter of 2002,
down from $643 thousand during the same period in 2001. This decline was
primarily due to the impact of lower commissions from sales of non-FDIC insured
investment products and reduced customer service charges.
Commissions from the sale of non-FDIC insured investment products during
the first quarter of 2002 decreased from the same period the prior year due to
vacancies in positions for licensed investment sales representatives.
Customer service charge income was lower in the first quarter of 2002 than
the same period in the prior year primarily due to the Company's charging
uncollected funds fees during the first quarter of 2001 but not charging these
fees during the same period in 2002 in response to competitive factors and due
to a change in the profile of the consumer checking portfolio. In conjunction
with the conversion to the new core data processing system in March 2001, the
Company implemented a revamped consumer checking product line and an associated
revised fee and service charge schedule. These changes contributed to the
closing of certain lower balance and / or higher transaction volume consumer
checking accounts over the past year, as such accounts began incurring increased
service charges.
Loan servicing income totaled $14 thousand during the three months ended
March 31, 2002, compared to $2 thousand during the same period in 2001. Loan
servicing income during the first quarter of 2001 was reduced by accelerated
amortization of mortgage servicing rights because of faster prepayments. The
Company continues to sell the vast majority of its long term, fixed rate
residential loan production into the secondary market on a servicing released
basis. As a result, the portfolio of loans serviced for others is declining as
loans pay off. At March 31, 2002, the Company serviced $37.3 million in various
types of loans for other investors, compared to $42.6 million at December 31,
2001.
Monterey Bay Bancorp, Inc. Page 4
Press Release
April 22, 2002
Gains on the sale of loans increased from $5 thousand during the first
quarter of 2001 to $27 thousand during the first quarter of 2002. The lower
interest rate environment in the first quarter of 2002 compared to the same
period in 2001 contributed to a greater level of refinance activity for
residential loans, which in turn increased the Company's mortgage banking
activity.
Non-interest expense totaled $3.5 million during the first quarter of 2002,
compared to $3.8 million during the same period in 2001. This decline in expense
was primarily due to the Company's incurring $408 thousand in expenses during
the first quarter of 2001 in conjunction with the data processing conversion.
Compensation and employee benefits expense rose from $1.7 million during
the first quarter of 2001 to $1.9 million during the first quarter of 2002.
Factors contributing to this increase included staff additions in data
processing and commercial lending. The staff additions in data processing
stemmed from the switch from an external service bureau environment to an
in-house system for the Company's primary data processing. The staff additions
in commercial lending were primarily comprised of new business account
relationship officers. Compensation and employees benefits costs also rose in
the first quarter of 2002 when compared to the same period during the prior year
due to the opening of the Los Angeles loan production office and because of
higher costs for the Bank's employee stock ownership plan ("ESOP"). The ESOP
expenses increased in 2002 versus 2001 because of the higher average price of
Monterey Bay Bancorp, Inc. common stock.
The change in the Company's systems environment also impacted various other
operating expenses. Data processing fees were much lower in 2002 versus 2001,
while equipment expense was higher due to the added depreciation from the new
hardware and software installed in 2001.
Consulting expenses were much lower in the first quarter of 2002 versus the
same period in 2001 because of consultants hired to assist with the core systems
conversion in 2001. Legal expenses declined $48 thousand from the first quarter
of 2001 to the first quarter of 2002 primarily due to expenditures in 2001
associated with claims by a former executive regarding payments due under his
employment contracts.
Advertising and promotion costs totaled $77 thousand in the first quarter
of 2002, up from $31 thousand during the same period in 2001. These costs were
unusually low in the first quarter of 2001, as the Company postponed certain
advertising and promotional activities pending the implementation of the new
computer systems environment. Advertising during the first quarter of 2002
included newspaper ads for deposit products, targeted direct mail to businesses
in the Bank's primary market area, and local radio ads that focused on
attracting business customers through the communication of the Bank's
"relationship banking" approach to customer service. The Company's visibility
was also enhanced during the first quarter by the extensive participation of
employees and Directors in a significant number of community events and
organizations.
Monterey Bay Bancorp, Inc. Page 5
Press Release
April 22, 2002
Total assets increased from $537.4 million at December 31, 2001 to a record
$542.2 million at March 31, 2002.
Cash & cash equivalents decreased from $13.1 million at December 31, 2001
to $12.4 million at March 31, 2002 due to the Company's using cash equivalents
to fund expansions in the security and loan portfolios.
Investment and mortgage backed securities increased from $37.9 million at
December 31, 2001 to $40.2 million at March 31, 2002. The Company purchased
relatively low duration Agency collateralized mortgage obligations during the
first quarter of 2002 to serve as collateral for certain deposits and to invest
available liquidity. The low duration was targeted in conjunction with the
Company's asset / liability management program and in order to provide cash
flows later in the year to fund anticipated loan production.
Loans held for sale totaled $661 thousand at March 31, 2002, down from $713
thousand at December 31, 2001. The Company sells most of its long term, fixed
rate residential mortgage production into the secondary market on a servicing
released basis, and purchases more interest rate sensitive loans as part of its
interest rate risk management program.
Loans held for investment, net, increased from $465.9 million at December
31, 2001 to a record $469.4 million at March 31, 2002. The increase resulted
from a combination of strong internal loan originations, including the first
loans from the new Los Angeles loan production office, and from purchases of
individual income property loans from correspondent banks. Total net loans as a
percentage of total assets were 86.7% at March 31, 2002. The Company has
targeted increasing this ratio as part of its strategy of supporting its
interest margin, fostering economic activity in its local communities, and
effectively utilizing the Bank's capital.
The product mix in the loan portfolio shifted during the first quarter in
conformity with the Company's strategic plan. Residential loans declined from
42.3% of gross loans at December 31, 2001 to 39.9% of gross loans at March 31,
2002. In contrast, construction loans increased from 7.9% to 9.2%, land loans
increased from 2.5% to 3.3%, and commercial loans rose from 1.8% to 2.4%. This
change in loan mix was facilitated by the commercial business relationship
officers the Company hired last year and by the new Los Angeles loan production
office, which concentrates on income property and construction lending. The
Company plans to continue decreasing the percentage of its loan portfolio
allocated to residential mortgages in favor of other generally higher yielding
and more interest rate sensitive types of loans.
The Company's commercial banking group continued generating increased
revenue during the first quarter of 2002. At March 31, 2002, this department had
attracted and was servicing $6.3 million in deposits, $7.6 million in commercial
real estate loans (e.g. owner / user), and $11.8 million in business term loans
and balances drawn against business lines of credit. The commercial banking
group's total credit commitments at March 31, 2002 were $27.6 million. In
addition, the commercial lending pipeline at March 31, 2002 pointed toward the
continued expansion of commercial banking customer relationships during the
second quarter of 2002.
Monterey Bay Bancorp, Inc. Page 6
Press Release
April 22, 2002
Deposits increased from $432.3 million at December 31, 2001 to a record
$435.8 million at March 31, 2002. The Company experienced strong growth in money
market deposits during the first quarter of 2002 due to a focused sales and
marketing program, certain customers' building up balances to pay property and
income taxes in April, and the historically low interest rate environment's
leading certain customers to delay committing funds to term certificates of
deposit. Consistent with the strategic plan, transaction accounts increased from
43.6% of total deposits at December 31, 2001 to 45.2% of total deposits at March
31, 2002. Deposit growth during the first quarter of 2002 was, however,
restrained by certain competitors that conducted aggressive promotional
campaigns for consumer deposits.
The Company's ratio of net loans to deposits was 107.87% at March 31, 2002.
The Company intends to actively manage this ratio in coming quarters by:
o introducing new deposit products and related services
o modifying staff incentive programs to more strongly focus on expanding
deposit relationships
o pursuing opportunities for additional branch locations
o directing a higher percentage of the advertising and promotion budget to
deposit generation
o seeking additional deposits under the State of California Time Deposit
program
o evaluating the acceptance of brokered deposits, which the Company has not
historically utilized
Borrowings decreased slightly from $53.8 million at December 31, 2001 to
$53.6 million at March 31, 2002. All of the Company's FHLB advances at March 31,
2002 were fixed rate, fixed term borrowings without call or put option features.
Early in the second quarter of 2002, the Company prepaid a $5.0 million in FHLB
advance due in the third quarter of 2002 in order to extend the term structure
of that debt in conjunction with the Company's asset / liability management
program.
Monterey Bay Bank continues to be in the highest regulatory capital
classification of "Well Capitalized", with capital levels significantly in
excess of regulatory requirements. The Bank's regulatory capital ratios
increased during the first quarter of 2002.
Consolidated stockholders' equity increased from $50.2 million at December
31, 2001 to a record $51.8 million at March 31, 2002 due to a combination of:
o net income
o continued amortization of deferred stock compensation
o Directors continuing to receive their retainer fees in Company stock
o the exercise of 29,805 vested stock options by former Directors and
employees
Monterey Bay Bancorp, Inc. Page 7
Press Release
April 22, 2002
The above factors more than offset the impacts of depreciation in the
portfolio of securities classified as available for sale and the repurchase of
5,000 shares of the Company's common stock at $16.25 per share. At March 31,
2002, there were 109,035 remaining shares authorized for repurchase under the
Company's current repurchase program.
The Company ended the first quarter with a loan pipeline in excess of $65.0
million, including a significant volume of construction and income property
loans. At this time, the Company anticipates further growth in total assets
during the second quarter of 2002.
The 2002 annual meeting of stockholders will take place on Thursday, May
23, 2002 at 9:00 AM Pacific Time at the Watsonville Women's Club in Watsonville,
California. All stockholders are cordially invited to attend.
In reviewing the most recent quarter, C. Edward Holden, the Company's Chief
Executive Officer and President, commented: "The Company achieved some notable
progress in implementing our strategy of transforming the Bank into a community
based financial services firm. We were successful in improving the composition
of the loan and deposit portfolios while at the same time increasing total loans
and total deposits to record levels. The Company generated improved
profitability versus prior periods, enhanced by the multiple steps implemented
in support of the strategic plan, including the opening of the Los Angeles loan
production office. We also continued our efforts to enhance stockholder value,
repurchasing Company stock for the first time since 2000, continuing to pay
Director retainer fees in Company stock, and working with our investment banker
to add coverage by a second equity analyst later this year."
Mr. Holden then added: "The Company also continued to actively manage its
credit profile, significantly reducing the prior concentration in real estate
loans secured by hotel / motel properties. We are vigorously pursuing the
resolution of the $2.3 million hotel loan that was placed on non-accrual status
this quarter. Management understands the importance of maintaining a strong
credit culture as the Bank transitions into a community commercial bank."
McKenzie Moss, Chairman of the Board of Directors, commented: "We were
pleased to see Management's continued investment in the Company's common stock
during the first quarter. The Board of Directors is focused on stockholder
value, and we believe an increased ownership position by Management facilitates
alignment with stockholder interests over the longer term. The Directors look
forward to meeting stockholders attending the upcoming 2002 Annual Meeting."
The Company's common stock is listed on the NASDAQ National Market under
the symbol "MBBC". The Company and the Bank are headquartered in Watsonville,
California. The Bank operates through its administrative offices in Watsonville
and eight full service branches located in the Greater Monterey Bay Area of
Central California. The Bank operates 11 ATM's including two at remote
(non-branch) sites. The Bank also offers customer access via bilingual telephone
banking, Internet banking, and worldwide ATM networks. The Bank's deposits are
insured by the Federal Deposit Insurance Corporation ("FDIC") up to the maximum
allowed by law.
Monterey Bay Bancorp, Inc. Page 8
Press Release
April 22, 2002
This news release contains certain forward-looking statements that are
subject to various factors that could cause actual results to differ materially
from such statements. Such factors include, but are not limited to, the
economic, business, and real estate market conditions in the Company's market
areas, competition, regulatory and legislative actions, the possibility that the
Company will not be successful in achieving its strategic objectives, actions by
investment banking firms and significant stockholders, the performance and
contributions of new employees, expected loan payments and future collateral
values, the successful future utilization and efficacy of new technology, and
other factors discussed in documents filed by the Company with the Securities
and Exchange Commission from time to time. The Company does not undertake, and
specifically disclaims any obligation, to update any forward-looking statements
to reflect occurrences or unanticipated events or circumstances after the date
of such statements.
For further information contact:
C. Edward Holden Mark R. Andino
Chief Executive Officer or Chief Financial Officer
President Treasurer
(831) 768 - 4840 (831) 768 - 4806
ed.holden@montereybaybank.com mark.andino@montereybaybank.com
General communication:
INFO@MONTEREYBAYBANK.COM
www.montereybaybank.com
Phone: (831) 768 - 4800
Fax: (831) 722 - 6794
--- financial data follows ---
MONTEREY BAY BANCORP, INC.
(NASDAQ: MBBC)
Consolidated Financial Highlights
Unaudited
(Dollars In Thousands)
March 31, December 31,
Financial Condition Data 2002 2001
- ------------------------------------------------------------------- ---- ----
Cash and cash equivalents $ 12,402 $ 13,079
Investment securities available for sale 7,270 7,300
Mortgage backed securities available for sale 32,916 30,644
Loans held for sale 661 713
Loans receivable held for investment:
Residential one to four unit real estate loans 194,545 204,829
Multifamily five or more units real estate loans 106,796 103,854
Commercial and industrial real estate loans 106,298 109,988
Construction loans 45,074 38,522
Land loans 16,279 11,924
Commercial loans 11,802 8,843
Other loans 7,989 6,980
--------- ---------
Sub-total gross loans held for investment 488,783 484,940
(Less) / Plus:
Undisbursed construction loan funds (12,609) (12,621)
Unamortized purchase premiums, net of purchase discounts 565 435
Deferred loan fees and costs, net (344) (202)
Allowance for loan losses (6,958) (6,665)
--------- ---------
Loans receivable held for investment, net 469,437 465,887
Investment in capital stock of the Federal Home Loan Bank 3,044 2,998
Accrued interest receivable 2,892 2,915
Premises and equipment, net 7,490 7,618
Core deposit intangibles, net 1,344 1,514
Real estate acquired via foreclosure, net -- --
Other assets 4,769 4,723
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Total assets $ 542,225 $ 537,391
========= =========
Non-interest bearing demand deposits $ 23,581 $ 21,062
Interest bearing NOW checking accounts 43,004 42,557
Savings accounts 18,824 19,127
Money market accounts 111,775 105,828
Certificates of deposit 238,630 243,765
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Total deposits 435,814 432,339
FHLB advances and other borrowings 53,600 53,800
Other liabilities 1,038 1,090
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Total liabilities 490,452 487,229
--------- ---------
Stockholders' equity 51,773 50,162
--------- ---------
Total liabilities and stockholders' equity $ 542,225 $ 537,391
========= =========
9
MONTEREY BAY BANCORP, INC.
(NASDAQ: MBBC)
Consolidated Financial Highlights, Continued
Unaudited
(Dollars In Thousands Except Per Share Amounts)
Three Months Ended March 31,
-----------------------------
Operating Data 2002 2001
- ------------------------------------------------------ ---------- ----------
Interest income $ 8,755 $ 9,995
Interest expense 3,405 5,243
---------- ----------
Net interest income before provision for loan losses 5,350 4,752
Provision for loan losses 325 500
---------- ----------
Net interest income after provision for loan losses 5,025 4,252
---------- ----------
Non-interest income:
Gain on sale of securities 43 34
Commissions from sales of non-insured products 41 117
Customer service charges 351 408
Income from loan servicing 14 2
Gain on sale of loans held for sale 27 5
Other income 36 77
---------- ----------
Total non-interest income 512 643
---------- ----------
Non-interest expense:
Compensation and employee benefits 1,905 1,658
Occupancy and equipment 424 350
Deposit insurance premiums 51 49
Data processing fees 136 442
Legal and accounting expenses 119 184
Supplies, postage, telephone, and office expenses 168 190
Advertising and promotion 77 31
Amortization of intangible assets 170 170
Consulting 22 242
Other expense 394 526
---------- ----------
Total non-interest expense 3,466 3,842
---------- ----------
Income before income taxes 2,071 1,053
Provision for income taxes 866 451
---------- ----------
Net income $ 1,205 $ 602
========== ==========
Shares applicable to basic earnings per share 3,348,387 3,227,241
Basic earnings per share $ 0.36 $ 0.19
========== ==========
Shares applicable to diluted earnings per share 3,465,286 3,274,559
Diluted earnings per share $ 0.35 $ 0.18
========== ==========
10
MONTEREY BAY BANCORP, INC.
(NASDAQ: MBBC)
Selected Ratios And Other Data
Unaudited
(Dollars In Thousands Except Per Share Amounts)
Three Months Ended March 31,
----------------------------
2002 2001
---- ----
Profitability Ratios [1]
- ------------------------------------------
Return on average assets 0.90% 0.49%
Return on average equity 9.37% 5.55%
Interest rate spread during the period 3.92% 3.66%
Net interest income / average total assets 3.98% 3.83%
Net interest margin 4.19% 4.04%
Efficiency ratio 59.13% 71.22%
Other Information
- ------------------------------------------
Average total assets $ 537,373 $ 496,090
Average interest earning assets $ 510,421 $ 470,539
March 31, December 31,
2002 2001
---- ----
Asset Quality Information
- ------------------------------------------
Non-accrual loans $ 4,547 $ 2,252
Non-performing loans $ 4,547 $ 2,252
Real estate acquired via foreclosure -- --
Allowance for loan losses $ 6,958 $ 6,665
Non-performing loans /
total assets 0.84% 0.42%
Allowance for loan losses /
loans outstanding 1.46% 1.41%
Allowance for loan losses /
non-accrual loans 153.02% 295.96%
Bank Regulatory Capital Ratios
- ------------------------------------------
Tangible capital ratio 8.45% 8.24%
Core capital ratio 8.45% 8.24%
Tier one risk based capital ratio 11.72% 11.38%
Total risk based capital ratio 12.97% 12.64%
Other Information
- ------------------------------------------
Full-service customer facilities 8 8
Number of ATM's 11 11
Loan to deposit ratio 107.87% 107.92%
Tangible book value per share $14.48 $14.08
Shares outstanding 3,483,718 3,456,097
- ------------------------------------------
[1] All applicable quarterly ratios reflect annualized figures.
11