Washington
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000-29829
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91-1815009
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(State or other jurisdiction
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(SEC File Number)
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(IRS Employer
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of incorporation or organization)
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Identification No.)
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September 30, 2011
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December 31, 2010
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|||||||
Assets
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||||||||
Cash and due from banks
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$ | 12,591 | $ | 7,428 | ||||
Interest bearing deposits in banks
|
39,349 | 54,330 | ||||||
Investment securities available-for-sale (amortized cost of $49,711 and $42,402)
|
50,636 | 41,893 | ||||||
Investment securities held-to-maturity (fair value of $7,241 and $6,584)
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7,130 | 6,454 | ||||||
Federal Home Loan Bank stock, at cost
|
3,182 | 3,182 | ||||||
Loans held for sale
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11,845 | 10,144 | ||||||
Loans
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474,463 | 465,681 | ||||||
Allowance for credit losses
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10,923 | 10,617 | ||||||
Loans, net
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463,540 | 455,064 | ||||||
Premises and equipment
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14,837 | 15,181 | ||||||
Other real estate owned
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8,696 | 6,580 | ||||||
Accrued interest receivable
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2,445 | 2,334 | ||||||
Cash surrender value of life insurance
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17,146 | 16,748 | ||||||
Goodwill
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11,282 | 11,282 | ||||||
Other intangible assets
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1,268 | 1,303 | ||||||
Other assets
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9,610 | 12,480 | ||||||
Total assets
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$ | 653,557 | $ | 644,403 | ||||
Liabilities and Shareholders' Equity
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||||||||
Deposits:
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||||||||
Demand, non-interest bearing
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$ | 102,527 | $ | 95,115 | ||||
Savings and interest-bearing demand
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295,018 | 253,347 | ||||||
Time, interest-bearing
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163,392 | 196,492 | ||||||
Total deposits
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560,937 | 544,954 | ||||||
Accrued interest payable
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1,463 | 1,380 | ||||||
Secured borrowings
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755 | 925 | ||||||
Short-term borrowings
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— | 10,500 | ||||||
Long-term borrowings
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10,500 | 10,500 | ||||||
Junior subordinated debentures
|
13,403 | 13,403 | ||||||
Other liabilities
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3,454 | 2,972 | ||||||
Total liabilities
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590,512 | 584,634 | ||||||
Shareholders' Equity
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||||||||
Common Stock (par value $1); 25,000,000 shares authorized; 10,121,853 shares issued and outstanding at September 30, 2011 and December 31, 2010
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10,122 | 10,122 | ||||||
Additional paid-in capital
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41,335 | 41,316 | ||||||
Retained earnings
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11,472 | 9,233 | ||||||
Accumulated other comprehensive loss
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116 | (902 | ) | |||||
Total shareholders' equity
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63,045 | 59,769 | ||||||
Total liabilities and shareholders' equity
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$ | 653,557 | $ | 644,403 |
Three Months Ended
September 30,
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Nine Months Ended
September 30,
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|||||||||||||||
2011
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2010
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2011
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2010
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|||||||||||||
Interest and dividend income
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||||||||||||||||
Loans
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$ | 6,861 | $ | 7,086 | $ | 20,459 | $ | 21,499 | ||||||||
Investment securities and FHLB dividends
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516 | 516 | 1,548 | 1,726 | ||||||||||||
Deposits with banks and federal funds sold
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29 | 29 | 77 | 92 | ||||||||||||
Total interest and dividend income
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7,406 | 7,631 | 22,084 | 23,317 | ||||||||||||
Interest Expense
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||||||||||||||||
Deposits
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1,112 | 1,550 | 3,731 | 5,118 | ||||||||||||
Other borrowings
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224 | 338 | 833 | 1,074 | ||||||||||||
Total interest expense
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1,336 | 1,888 | 4,564 | 6,192 | ||||||||||||
Net Interest Income
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6,070 | 5,743 | 17,520 | 17,125 | ||||||||||||
Provision for credit losses
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1,050 | 850 | 1,550 | 2,850 | ||||||||||||
Net interest income after provision for credit losses
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5,020 | 4,893 | 15,970 | 14,275 | ||||||||||||
Non-interest Income
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||||||||||||||||
Service charges on deposits
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470 | 464 | 1,350 | 1,338 | ||||||||||||
Net gain (loss) on sales of other real estate owned
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17 | 19 | (126 | ) | 273 | |||||||||||
Gain on sales of loans
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1,084 | 1,010 | 2,183 | 2,859 | ||||||||||||
Net gain on sales of investments available-for-sale
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352 | — | 536 | 402 | ||||||||||||
Other-than-temporary-impairment loss
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— | — | (243 | ) | — | |||||||||||
Earnings on bank owned life insurance
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135 | 144 | 398 | 409 | ||||||||||||
Other operating income
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397 | 378 | 1,061 | 920 | ||||||||||||
Total non-interest income
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2,455 | 2,015 | 5,159 | 6,201 | ||||||||||||
Non-interest Expense
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||||||||||||||||
Salaries and employee benefits
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3,363 | 3,378 | 10,188 | 9,913 | ||||||||||||
Occupancy and equipment
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623 | 669 | 1,908 | 2,043 | ||||||||||||
Other real estate owned write-downs
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62 | 73 | 599 | 564 | ||||||||||||
Other real estate owned operating costs
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89 | 166 | 293 | 425 | ||||||||||||
Professional services
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174 | 204 | 574 | 582 | ||||||||||||
FDIC and State assessments
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215 | 332 | 711 | 1,043 | ||||||||||||
Data processing
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336 | 245 | 920 | 802 | ||||||||||||
Other
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1,198 | 1,264 | 3,600 | 3,548 | ||||||||||||
Total non-interest expense
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6,060 | 6,331 | 18,793 | 18,920 | ||||||||||||
Income before income taxes
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1,415 | 577 | 2,336 | 1,556 | ||||||||||||
Benefit for income taxes
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211 | 98 | 97 | (60 | ) | |||||||||||
Net Income
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$ | 1,204 | $ | 479 | $ | 2,239 | $ | 1,616 | ||||||||
Earnings per common share:
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||||||||||||||||
Basic
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$ | 0.12 | $ | 0.05 | $ | 0.22 | $ | 0.16 | ||||||||
Diluted
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0.12 | 0.05 | 0.22 | 0.16 | ||||||||||||
Weighted Average shares outstanding:
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||||||||||||||||
Basic
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10,121,853 | 10,121,853 | 10,121,853 | 10,121,853 | ||||||||||||
Diluted
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10,121,919 | 10,121,853 | 10,121,875 | 10,121,853 |
Nine months ended September 30,
|
||||||||
2011
|
2010
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|||||||
Net interest margin (1)
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4.02 | % | 3.95 | % | ||||
Efficiency ratio (2)
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82.87 | % | 81.11 | % | ||||
Return on average assets
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0.46 | % | 0.33 | % | ||||
Return on average common equity
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4.87 | % | 3.68 | % |
As of Period End
|
||||||||
September 30,
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December 31,
|
|||||||
2011
|
2010
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|||||||
Book value per common share
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$ | 6.23 | $ | 5.90 | ||||
Tangible book value per common share (3)
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$ | 4.99 | $ | 4.66 | ||||
Tier 1 Leverage Ratio
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10.03 | % | 9.80 | % | ||||
Tier 1 Risk Based Capital Ratio
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13.70 | % | 13.35 | % | ||||
Total Risk Based Capital Ratio
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14.97 | % | 14.62 | % |
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(1)
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Net interest income divided by average earnings assets.
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(2)
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Non-interest expense divided by the sum of net interest income and noninterest income.
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(3)
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Total shareholders’ equity less intangibles divided by shares outstanding.
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SUMMARY OF NON-PERFORMING ASSETS
(in thousands)
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September 30,
2011
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December 31,
2010
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September 30,
2010
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|||||||||
Accruing loans past due 90 days or more
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$ | — | $ | — | $ | — | ||||||
Restructured loans on accrual status
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398 | — | — | |||||||||
Non-accrual loans (4)
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11,880 | 9,999 | 6,590 | |||||||||
Total non-performing loans (5)
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12,278 | 9,999 | 6,590 | |||||||||
Other real estate owned and repossessions
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8,709 | 6,580 | 9,689 | |||||||||
TOTAL non-performing assets
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$ | 20,987 | $ | 16,579 | $ | 16,279 | ||||||
Non-performing loans to total loans (6)
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2.59 | % | 2.15 | % | 1.41 | % | ||||||
Non-performing assets to total assets
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3.21 | % | 2.57 | % | 2.57 | % | ||||||
Allowance for loan losses to non-performing loans
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88.96 | % | 106.18 | % | 174.67 | % | ||||||
Allowance for loan losses to total loans (6)
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2.30 | % | 2.28 | % | 2.47 | % |
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(4)
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Includes $4,942,000 and $932,000 in non-accrual troubled debt restructured loans (“TDRs”) as of September 30, 2011 and December 31, 2010, respectively. There were no TDRs as of September 30, 2010.
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(5)
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Includes one loan totaling $3,627,000 at September 30, 2011 of which $3,198,000 is guaranteed by the United States Department of Agriculture.
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(6)
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Excludes loans held for sale.
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Loan Composition
(in thousands)
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September 30,
2011
|
December 31,
2010
|
||||||
Commercial and industrial
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$ | 91,886 | $ | 84,575 | ||||
Real estate:
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||||||||
Construction, land development and other land loans
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46,202 | 46,256 | ||||||
Residential 1-4 family
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88,960 | 89,212 | ||||||
Multi-family
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7,433 | 9,113 | ||||||
Commercial real estate – owner occupied
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118,452 | 109,936 | ||||||
Commercial real estate – non owner occupied
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103,558 | 106,079 | ||||||
Farmland
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21,728 | 22,354 | ||||||
Consumer
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8,957 | 9,128 | ||||||
Less unearned income
|
(868 | ) | (828 | ) | ||||
Total Loans (6)
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$ | 486,308 | $ | 475,825 |
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(7)
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Includes loans held for sale.
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Deposit Composition
(in thousands)
|
September 30,
2011
|
December 31,
2010
|
||||||
Non-interest bearing demand
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$ | 102,527 | $ | 95,115 | ||||
Interest bearing demand
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122,121 | 103,358 | ||||||
Money market deposits
|
109,423 | 93,996 | ||||||
Savings deposits
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63,474 | 55,993 | ||||||
Time deposits
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163,392 | 196,492 | ||||||
Total deposits
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$ | 560,937 | $ | 544,954 |
PACIFIC FINANCIAL CORPORATION
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||
DATED: November 1, 2011
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By:
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/s/ Denise Portmann
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Denise Portmann | ||
Chief Financial Officer |