8-K
NATIONAL BANKSHARES INC (NKSH)
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) October 22, 2020 (October 22, 2020)
National Bankshares, Inc.
(Exact name of Registrant as specified in its charter)
| Virginia | 0-15204 | 54-1375874 |
|---|---|---|
| (State or other jurisdiction<br><br> <br>of incorporation) | (Commission File No.) | (I.R.S. Employer Identification No.) |
101 Hubbard Street
Blacksburg, VA 24060
(Address of principal executive offices)
(540) 951-6300
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report) Not applicable
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 (see General Instruction A.2. below):
| ☐ | 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)) |
| --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock | NKSH | NASDAQ |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| ☐ | Emerging growth company |
|---|
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
| ITEM 2.02. | RESULTS OF OPERATIONS, FINANCIAL STATEMENTS AND EXHIBITS |
|---|
On October 22, 2020, National Bankshares, Inc. issued a press release announcing and commenting on its financial results for the quarter ended September 30, 2020. A copy of the press release is attached as Exhibit 99.1.
| ITEM 9.01. | FINANCIAL STATEMENTS AND EXHIBITS |
|---|---|
| (d) | Exhibits |
| --- | --- |
| 99.1 | National Bankshares, Inc. Press Release, dated October 22, 2020. |
| --- | --- |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
NATIONAL BANKSHARES, INC.
| Date: | October 22, 2020 |
|---|---|
| By: | /s/ F. BRAD DENARDO |
| F. Brad Denardo<br><br> <br>Chairman, President & CEO |
Page 2 of 2 Pages
ex_207820.htm
Exhibit 99.1
FOR IMMEDIATE RELEASE
| CONTACTS: **** | F. Brad Denardo, Chairman, President & CEO | David K. Skeens, Treasurer & CFO |
|---|---|---|
| (540) 951-6213 bdenardo@nbbank.com | (540) 951-6347 dskeens@nbbank.com |
National Bankshares, Inc. Reports Income for Third Quarter and Nine Months Ended September 30, 2020
BLACKSBURG, VA., October 22, 2020 -- National Bankshares, Inc. **** (NASDAQ: NKSH), parent company of The National Bank of Blacksburg, today announced its results of operations for the third quarter and nine months ended September 30, 2020. The Company reported net income of $11.13 million, or $1.71 per common share, for the nine months ended September 30, 2020. This compares to net income of $12.69 million, or $1.92 per common share, for the nine months ended September 30, 2019. National Bankshares, Inc. ended the first nine months of 2020 with total assets of $1.44 billion.
Chairman, President, and CEO F. Brad Denardo commented, “The economic effects of the COVID-19 pandemic continue to impact our income statement. An increased loan loss allowance, low interest rates on loans, and reduced noninterest income all contributed to lower year-over-year income for the first nine months of 2020. While the broader economic outlook is still uncertain, we remain focused on serving our customers safely and effectively, while controlling costs and maintaining a strong capital position. To our customers, communities, and shareholders, we thank you for your continued support.”
Highlights for the Nine Months Ended September 30, 2020
In Light of the Pandemic
| - | To protect our employees and customers during the COVID-19 pandemic, we shifted to serving customers primarily though branch drive-thrus and digital channels by closing our branch office lobbies on March 20^th^. We continue to serve customers in person when requested and hope to reopen our lobbies within the next few months. |
|---|---|
| - | To aid our many business customers with pandemic related financial hardship, we have modified or deferred payments on 361 loans totaling $160.23 million as of September 30, 2020. Requests for modifications and/or deferrals greatly subsided during the third quarter as many of our business customers experienced improved revenue. |
| --- | --- |
Income Statement
| - | Our current net income includes a loan loss provision of $1.99 million, an increase of $1.64 million over the provision for the first three quarters of 2019. We continue to approach estimation of loan losses and the resulting provision with sensitivity to the current economic environment. |
|---|---|
| - | Despite the emphasis on bolstering our allowance for loan losses, the return on average assets improved from 1.03% for the six months ended June 30, 2020 to 1.08% for the nine months ended September 30, 2020. |
| --- | --- |
| - | The drop in interest rates has resulted in low rates on new loans and refinancing of higher-rate existing loans, straining the net interest margin. The net interest margin for the nine months ended September 30, 2020 is 2.98%, down from 3.31% for the first three quarters of 2019, and from 3.05% for the first half of 2020. |
| --- | --- |
| - | Noninterest income was down 9.89%, or $0.64 million, compared to the nine months ended September 30, 2019. This decrease was primarily in service charges and fees on deposit accounts as our customers have been careful not to overdraw their accounts or incur other fees. |
| --- | --- |
| - | The Company has worked to contain expenses. Noninterest expense decreased 3.32%, or $0.64 million compared to the nine months ending September 30, 2019. |
| --- | --- |
101 Hubbard Street / Blacksburg, Virginia 24060
P.O. Box 90002 / Blacksburg, Virginia 24062-9002
540 951-6300 / 800 552-4123
www.nationalbankshares.com
Balance Sheet
| - | Total assets increased by $162.78 million, or 12.79%, from September 30, 2019, to $1.44 billion. |
|---|---|
| - | Total deposits have increased $145.56 million, or 13.63%, from September 30, 2019, to $1.21 billion. We expect the deposit base to remain fairly stable through the end of 2020. |
| --- | --- |
| - | Gross loans have grown by $80.04 million since September 30, 2019. Small Business Administration Paycheck Protection Program (PPP) loans represent $58.03 million of that growth. We expect total loans to decrease in the fourth quarter as some PPP loans will be forgiven and a large loan is scheduled to be paid off. |
| --- | --- |
| - | With total stockholders’ equity of $202.19 million, the Company’s capital position provides a source of strength and continues to significantly exceed all regulatory capital guidelines. |
| --- | --- |
Other Notables
| - | No shares of the Company’s common stock were repurchased this quarter. However, with PPP loans starting to be forgiven, which provides us with much more liquidity, we may consider repurchases in the fourth quarter or early in 2021. |
|---|---|
| - | Nonperforming loans as a percentage of total loans decreased to 0.45% at September 30, 2020, a 20.3% decrease from 0.56% at September 30, 2019, and a decrease from 0.48% at June 30, 2020. |
| --- | --- |
| - | The efficiency ratio continues to improve at 54.10% for the nine months ended September 30, 2020, as compared to 55.30% for the nine months ended September 2019 and 54.50% for the six months ended June 30, 2020. |
| --- | --- |
| - | The allowance for loan losses to total loans as of September 30, 2020 remained at a similar level to June 30, 2020, at 1.05%. Excluding the Paycheck Protection Program loans, the ratio is 1.13%. |
| --- | --- |
| - | The book value per common share as of September 30, 2020 was $31.16, an improvement from $28.97 as of September 30, 2019, and $30.17 as of June 30, 2020. |
| --- | --- |
Non-GAAP Financial Measures
In addition to financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures that provide useful information for financial and operational decision making, evaluating trends, and comparing financial results to other financial institutions. The non-GAAP financial measures presented in this document include the efficiency ratio and certain financial measures presented on a fully taxable-equivalent (“FTE”) basis. FTE basis is calculated using the federal statutory income tax rate of 21%. Further, the Company elects not to annualize net securities gains and losses in 2020 and 2019 or the insurance recovery received in 2019 in calculating the return on average equity and return on average assets. The Company believes certain non-GAAP financial measures enhance the understanding of its business and performance. Non-GAAP financial measures are supplemental and not a substitute for, or more important than, financial measures prepared in accordance with GAAP and may not be comparable to those reported by other financial institutions.
About National Bankshares
National Bankshares, Inc., headquartered in Blacksburg, Virginia, is the parent company of The National Bank of Blacksburg, which does business as National Bank, and of National Bankshares Financial Services, Inc. National Bank is a community bank operating from 25 full-service offices and one loan production office throughout Southwest Virginia. National Bankshares Financial Services, Inc. is an investment and insurance subsidiary in the same trade area. The Company’s stock is traded on the NASDAQ Capital Market under the symbol “NKSH.” Additional information is available at www.nationalbankshares.com.
Forward-Looking Statements
Certain statements in this press release may be “forward-looking statements.” Forward-looking statements are statements that include projections, predictions, expectations , or beliefs about future events or results that are not statements of historical fact and that involve significant risks and uncertainties. Although the Company believes that its expectations with regard to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual Company results will not differ materially from any future results implied by the forward-looking statements. Actual results may be materially different from past or anticipated results because of many factors, some of which may include changes in economic conditions, the interest rate environment, legislative and regulatory requirements, new products, competition, changes in the stock and bond markets , and technology. The Company does not update any forward-looking statements that it may make.
2
National Bankshares, Inc.
Consolidated Balance Sheets
(Unaudited)
| ( in thousands, except for share and per share data) | September 30, 2019 | December 31, 2019 | ||||||
|---|---|---|---|---|---|---|---|---|
| Assets | **** | **** | **** | **** | **** | **** | **** | **** |
| Cash and due from banks | 10,593 | $ | 14,206 | $ | 10,290 | |||
| Interest-bearing deposits | 68,779 | 135,490 | 76,881 | |||||
| Securities available for sale, at fair value | 487,351 | 334,150 | 435,263 | |||||
| Restricted stock | 1,279 | 1,220 | 1,220 | |||||
| Total securities | 488,630 | 335,370 | 436,483 | |||||
| Mortgage loans held for sale | 3,690 | 2,333 | 905 | |||||
| Loans: | ||||||||
| Loans, net of unearned income and deferred fees and costs | 800,654 | 722,287 | 733,451 | |||||
| Less: allowance for loan losses | (8,428 | ) | (7,262 | ) | (6,863 | ) | ||
| Loans, net | 792,226 | 715,025 | 726,588 | |||||
| Premises and equipment, net | 10,024 | 8,993 | 8,919 | |||||
| Accrued interest receivable | 5,238 | 4,233 | 4,285 | |||||
| Other real estate owned, net | 1,553 | 1,470 | 1,612 | |||||
| Intangible assets and goodwill | 5,848 | 5,848 | 5,848 | |||||
| Bank-owned life insurance | 36,226 | 35,338 | 35,567 | |||||
| Other assets | 12,691 | 14,415 | 14,459 | |||||
| Total assets | 1,435,498 | $ | 1,272,721 | $ | 1,321,837 | |||
| Liabilities and Stockholders' Equity | **** | **** | **** | **** | **** | **** | **** | **** |
| Noninterest-bearing deposits | 270,237 | $ | 217,720 | $ | 201,866 | |||
| Interest-bearing demand deposits | 676,162 | 580,533 | 643,482 | |||||
| Savings deposits | 164,175 | 145,188 | 146,377 | |||||
| Time deposits | 103,008 | 124,586 | 128,028 | |||||
| Total deposits | 1,213,582 | 1,068,027 | 1,119,753 | |||||
| Accrued interest payable | 86 | 133 | 144 | |||||
| Other liabilities | 19,636 | 16,573 | 18,214 | |||||
| Total liabilities | 1,233,304 | 1,084,733 | 1,138,111 | |||||
| Stockholders' Equity | **** | **** | **** | **** | **** | **** | **** | **** |
| Preferred stock, no par value, 5,000,000 shares authorized; none issued and outstanding | --- | --- | --- | |||||
| Common stock of 1.25 par value. Authorized 10,000,000 shares; issued and outstanding 6,489,574 shares at September 30, 2020, September 30, 2019 and December 31, 2019 | 8,112 | 8,112 | 8,112 | |||||
| Retained earnings | 190,901 | 184,016 | 184,120 | |||||
| Accumulated other comprehensive loss, net | 3,181 | (4,140 | ) | (8,506 | ) | |||
| Total stockholders' equity | 202,194 | 187,988 | 183,726 | |||||
| Total liabilities and stockholders' equity | 1,435,498 | $ | 1,272,721 | $ | 1,321,837 |
All values are in US Dollars.
3
National Bankshares, Inc.
Consolidated Statements of Income
(Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| ($ in thousands, except for share and per share data) | September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | ||||||
| Interest Income | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest and fees on loans | $ | 8,606 | $ | 8,548 | $ | 25,491 | $ | 25,277 | ||
| Interest on federal funds | **** | --- | --- | **** | --- | --- | ||||
| Interest on interest-bearing deposits | **** | 17 | 407 | **** | 248 | 1,048 | ||||
| Interest on securities - taxable | **** | 1,572 | 1,565 | **** | 5,791 | 4,851 | ||||
| Interest on securities - nontaxable | **** | 513 | 768 | **** | 1,316 | 2,543 | ||||
| Total interest income | **** | 10,708 | 11,288 | **** | 32,846 | 33,719 | ||||
| Interest Expense | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest on time deposits | **** | 395 | 523 | **** | 1,476 | 1,239 | ||||
| Interest on other deposits | **** | 1,025 | 1,342 | **** | 3,338 | 4,333 | ||||
| Total interest expense | **** | 1,420 | 1,865 | **** | 4,814 | 5,572 | ||||
| Net interest income | **** | 9,288 | 9,423 | **** | 28,032 | 28,147 | ||||
| Provision for loan losses | **** | 154 | 95 | **** | 1,985 | 350 | ||||
| Net interest income after provision for loan losses | **** | 9,134 | 9,328 | **** | 26,047 | 27,797 | ||||
| Noninterest Income | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Service charges on deposit accounts | **** | 471 | 643 | **** | 1,430 | 1,840 | ||||
| Other service charges and fees | **** | 37 | 46 | **** | 113 | 149 | ||||
| Credit card fees | **** | 339 | 350 | **** | 1,031 | 1,015 | ||||
| Trust income | **** | 423 | 440 | **** | 1,244 | 1,208 | ||||
| Bank-owned life insurance | **** | 219 | 230 | **** | 659 | 681 | ||||
| Other income | **** | 423 | 227 | **** | 1,233 | 1,368 | ||||
| Realized securities gain, net | **** | 14 | 162 | **** | 96 | 182 | ||||
| Total noninterest income | **** | 1,926 | 2,098 | **** | 5,806 | 6,443 | ||||
| Noninterest Expense | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Salaries and employee benefits | **** | 3,211 | 3,540 | **** | 10,882 | 11,163 | ||||
| Occupancy and furniture and fixtures | **** | 452 | 468 | **** | 1,360 | 1,410 | ||||
| Data processing and ATM | **** | 799 | 823 | **** | 2,396 | 2,363 | ||||
| FDIC assessment | **** | 87 | --- | **** | 127 | 167 | ||||
| Net cost of other real estate owned | **** | 18 | 17 | **** | 36 | 45 | ||||
| Franchise taxes | **** | 331 | 343 | **** | 1,009 | 990 | ||||
| Other operating expenses | **** | 1,222 | 1,195 | **** | 2,854 | 3,166 | ||||
| Total noninterest expense | **** | 6,120 | 6,386 | **** | 18,664 | 19,304 | ||||
| Income before income tax expense | **** | 4,940 | 5,040 | **** | 13,189 | 14,936 | ||||
| Income tax expense | **** | 772 | 788 | **** | 2,060 | 2,247 | ||||
| Net Income | $ | 4,168 | $ | 4,252 | $ | 11,129 | $ | 12,689 | ||
| Basic net income per share | $ | 0.64 | $ | 0.65 | $ | 1.71 | $ | 1.92 | ||
| Fully diluted net income per share | $ | 0.64 | $ | 0.65 | $ | 1.71 | $ | 1.92 | ||
| Weighted average number of common shares outstanding | ||||||||||
| Basic | **** | 6,489,574 | 6,499,957 | **** | 6,489,574 | 6,611,354 | ||||
| Diluted | **** | 6,489,574 | 6,499,957 | **** | 6,489,574 | 6,611,354 | ||||
| Dividends declared per share | **** | --- | --- | $ | 0.67 | $ | 0.67 | |||
| Dividend payout ratio | **** | --- | --- | **** | 39.07 | % | 34.35 | % | ||
| Book value per share | **** | --- | --- | $ | 31.16 | $ | 28.97 |
4
National Bankshares, Inc.
Consolidated Statements of Comprehensive Income
(Unaudited)
| ( in thousands) | September 30, 2019 | ||||
| Net income | 4,168 | $ | 4,252 | ||
| Other Comprehensive Income, Net of Tax | **** | **** | **** | **** | **** |
| Unrealized holding gain on available for sale securities net of tax of 601 for the period ended September 30, 2020 and 146 for the period ended September 30, 2019 | 2,256 | 544 | |||
| Reclassification adjustment for gain included in net income, net of tax of (3) for the period ended September 30, 2020 and (34) for the period ended September 30, 2019 | (11 | ) | (128 | ) | |
| Other comprehensive income, net of tax | 2,245 | $ | 416 | ||
| Total Comprehensive Income | 6,413 | $ | 4,668 |
All values are in US Dollars.
| ( in thousands) | September 30, 2019 | ||||
| Net income | 11,129 | $ | 12,689 | ||
| Other Comprehensive Income, Net of Tax | **** | **** | **** | **** | **** |
| Unrealized holding gain on available for sale securities net of tax of 3,127 for the period ended September 30, 2020 and 2,149 for the period ended September 30, 2019 | 11,763 | 8,089 | |||
| Reclassification adjustment for gain included in net income, net of tax of (20) for the period ended September 30, 2020 and (38) for the period ended September 30, 2019 | (76 | ) | (144 | ) | |
| Other comprehensive income, net of tax | 11,687 | $ | 7,945 | ||
| Total Comprehensive Income | 22,816 | $ | 20,634 |
All values are in US Dollars.
5
National Bankshares, Inc.
Key Ratios and Other Data
(Unaudited)
| Three Months Ended | **** | Nine Months Ended | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ( $ in thousands ) | September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | ||||||||
| Average Balances | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Cash and due from banks | $ | 11,019 | $ | 11,590 | $ | 11,229 | $ | 11,367 | ||||
| Interest-bearing deposits | **** | 64,981 | 75,581 | **** | 74,296 | 61,209 | ||||||
| Securities available for sale | **** | 488,272 | 376,792 | **** | 460,016 | 397,235 | ||||||
| Restricted stock | **** | 1,279 | 1,220 | **** | 1,261 | 1,220 | ||||||
| Mortgage loans held for sale | **** | 1,459 | 914 | **** | 1,120 | 509 | ||||||
| Gross Loans | **** | 799,100 | 721,238 | **** | 765,076 | 717,667 | ||||||
| Loans, net | **** | 790,357 | 713,463 | **** | 757,094 | 709,766 | ||||||
| Intangible assets | **** | 5,848 | 5,848 | **** | 5,848 | 5,848 | ||||||
| Total assets | **** | 1,430,541 | 1,250,473 | **** | 1,378,921 | 1,253,245 | ||||||
| Total deposits | **** | 1,211,750 | 1,050,817 | **** | 1,165,639 | 1,052,855 | ||||||
| Stockholders' equity | **** | 198,928 | 183,273 | **** | 193,920 | 184,286 | ||||||
| Interest-earning assets | **** | 1,340,835 | 1,171,425 | **** | 1,292,594 | 1,177,688 | ||||||
| Interest-bearing liabilities | **** | 945,682 | 847,489 | **** | 927,022 | 854,458 | ||||||
| Financial Ratios | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Return on average assets^(1)^ | **** | 1.16 | % | 1.32 | % | **** | 1.08 | % | 1.34 | % | ||
| Return on average equity^(1)^ | **** | 8.32 | % | 9.00 | % | **** | 7.65 | % | 9.10 | % | ||
| Net interest margin | **** | 2.84 | % | 3.30 | % | **** | 2.98 | % | 3.31 | % | ||
| Net interest income-fully taxable equivalent | $ | 9,572 | $ | 9,748 | $ | 28,792 | $ | 29,186 | ||||
| Efficiency ratio^(2)^ | **** | 53.29 | % | 54.66 | % | **** | 54.10 | % | 55.30 | % | ||
| Average equity to average assets | **** | 13.91 | % | 14.66 | % | **** | 14.06 | % | 14.70 | % | ||
| Allowance for Loan Losses | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Beginning balance | $ | 8,308 | $ | 7,304 | $ | 6,863 | $ | 7,390 | ||||
| Provision for losses | **** | 154 | 95 | **** | 1,985 | 350 | ||||||
| Charge-offs | **** | (99 | ) | (188 | ) | **** | (639 | ) | (696 | ) | ||
| Recoveries | **** | 65 | 51 | **** | 219 | 218 | ||||||
| Ending balance | $ | 8,428 | $ | 7,262 | $ | 8,428 | $ | 7,262 | ||||
| (1) | Return on average assets and return on average equity are calculated by annualizing net income to date. | |||||||||||
| --- | --- | |||||||||||
| (2) | Efficiency ratio is calculated as noninterest expense, less non-recurring items, divided by the sum of noninterest income and net interest income on a fully taxable equivalent basis. |
6
National Bankshares, Inc.
Asset Quality Data
(Unaudited)
| ( $ in thousands ) | September 30, 2020 | September 30, 2019 | ||||
|---|---|---|---|---|---|---|
| Nonperforming Assets | **** | **** | **** | **** | **** | **** |
| Nonaccrual loans | $ | 736 | $ | 699 | ||
| Nonaccrual restructured loans | **** | 2,866 | 3,377 | |||
| Total nonperforming loans | **** | 3,602 | 4,076 | |||
| Other real estate owned | $ | 1,553 | $ | 1,470 | ||
| Total nonperforming assets | $ | 5,155 | $ | 5,546 | ||
| Accruing restructured loans | **** | 1,426 | 1,880 | |||
| Accruing loans 90 days or more past due | $ | 236 | $ | 211 | ||
| Asset Quality Ratios | **** | **** | **** | **** | **** | **** |
| Nonperforming assets to loans net of unearned income and deferred fees, plus other real estate owned | **** | 0.64 | % | 0.77 | % | |
| Allowance for loans losses to total loans | **** | 1.05 | % | 1.01 | % | |
| Allowance for loan losses to nonperforming loans | **** | 233.98 | % | 178.16 | % | |
| Loans past due 90 days or more to loans net of unearned income and deferred fees | **** | 0.03 | % | 0.03 | % |
7