Peoples Financial Services (PFIS) - 2025 Q2 - Quarterly Results

Executive Summary Second Quarter 2025 Highlights Peoples Financial Services Corp. reported strong unaudited financial results for Q2 2025, with net income and diluted EPS increasing compared to the prior quarter | Metric | Q2 2025 | Q1 2025 | Change (QoQ) | | :-------------------------------- | :------ | :------ | :----------- | | Net Income (in millions) | $17.0 | $15.0 | +$2.0 | | Diluted EPS | $1.68 | $1.49 | +$0.19 | | Return on Average Assets (ROAA) | 1.36% | 1.22% | +0.14% | | Return on Average Equity (ROAE) | 13.87% | 12.70% | +1.17% | - Net income increased primarily due to higher net interest income and a lower provision for credit losses[2] - Paid a second quarter dividend of $0.6175 per share, a 50.6% increase over Q2 2024 and equal to Q1 2025[6] - Allowance for credit losses to loans was 1.02% at June 30, 2025, a slight decrease from 1.03% at March 31, 2025[6] Year-to-Date 2025 Highlights For the first six months of 2025, Peoples Financial Services Corp. achieved significant growth in net income and diluted EPS compared to the same period in 2024, largely driven by the FNCB merger | Metric | H1 2025 | H1 2024 | Change (YoY) | | :---------------- | :------ | :------ | :----------- | | Net Income (in millions) | $32.0 | $6.7 | +$25.3 | | Diluted EPS | $3.18 | $0.95 | +$2.23 | - The increase in net income was primarily due to higher net interest income and noninterest income, and a lower provision for credit losses, which more than offset an increase in noninterest expenses[3] Impact of FNCB Merger The FNCB merger, completed on July 1, 2024, has significantly impacted the Company's financial results for 2025, leading to increased interest-earning assets, transaction volumes, and purchase accounting related accretion, which boosted net interest and noninterest income - Higher levels of interest-earning assets, higher transaction volumes, and purchase accounting related accretion from the FNCB merger resulted in increased net interest income and noninterest income compared to the prior year period[3] - The CEO affirmed that the merger has strengthened the combined organization, reflected in improved net income, EPS, net interest margin, efficiency ratio, and asset quality[4] - Financial results for periods ended prior to July 1, 2024, reflect Peoples' stand-alone results, making direct comparability with current periods challenging due to the FNCB merger[4] Non-GAAP Financial Measures Peoples Financial Services Corp. utilizes non-GAAP financial measures, such as tangible stockholders' equity, core net income, pre-provision revenue ratios, and tax-equivalent net interest income, to supplement GAAP results - Peoples supplements GAAP results with non-GAAP measures including tangible stockholders' equity, core net income, pre-provision revenue ratios, and tax-equivalent net interest income[5] - Non-core items, such as acquisition-related expenses, nonrecurring provisions for non-PCD loans, and gains/losses on sale of available-for-sale securities, are excluded from non-GAAP measures[5] - Reconciliations to comparable GAAP measures are provided in accompanying tables[5] Financial Performance Review Income Statement Review The Company's income statement showed significant improvements both quarter-over-quarter and year-over-year, driven by increased net interest income, higher interest-earning asset yields, and effective management of credit losses, despite rising noninterest expenses related to merger integration Second Quarter 2025 vs. First Quarter 2025 Net interest income and net interest margin improved in Q2 2025 compared to Q1 2025, primarily due to higher interest income from loan and investment repricing and FNCB merger accretion, partially offset by increased borrowing costs | Metric | Q2 2025 (in millions) | Q1 2025 (in millions) | Change (QoQ) | | :-------------------------------- | :-------------------- | :-------------------- | :----------- | | Net Interest Income | $42.2 | $39.5 | +$2.7 | | FTE Net Interest Income | $42.9 | $40.2 | +$2.7 (+6.6%)| | Provision for Credit Losses | ($0.2) (credit) | $0.2 (expense) | -$0.4 | | Noninterest Income | $6.2 | $6.3 | -$0.1 | | Noninterest Expense | $28.3 | $27.4 | +$0.9 | | Income Tax Expense | $3.5 | $3.2 | +$0.3 | | Effective Tax Rate | 17.0% | 17.8% | -0.8% | - Higher interest income resulted from loan and investment cash flow repricing at higher rates, increased volume of interest-earning assets, higher loan accretion from the FNCB merger, and accelerated investment accretion[9] | Metric | Q2 2025 | Q1 2025 | Change (QoQ) | | :-------------------------------- | :------ | :------ | :----------- | | Net Interest Margin (FTE) | 3.69% | 3.50% | +19 bps | | Tax-equivalent yield on earning assets | 5.68% | 5.50% | +18 bps | | Cost of Funds | 2.60% | 2.58% | +2 bps | | Cost of Interest-Bearing Deposits | 2.41% | 2.46% | -5 bps | | Cost of Total Deposits | 1.91% | 1.96% | -5 bps | | Cost of Total Borrowings | 5.68% | 5.18% | +50 bps | - The provision for credit losses declined due to net recoveries and a reduction in specific reserves on individually evaluated loans, offset by an increase in pooled loan reserves for equipment financing loans[14] - Noninterest expense increased due to higher salaries and employee benefits (year-end cash incentives) and other expenses (account processing, legal fees, off-balance sheet commitments), partially offset by lower occupancy and equipment expense[16] Six Months Ended June 30, 2025 vs. June 30, 2024 The first half of 2025 saw a substantial increase in net interest income and noninterest income compared to H1 2024, primarily due to the FNCB merger expanding interest-earning assets and transaction volumes | Metric | H1 2025 (in millions) | H1 2024 (in millions) | Change (YoY) | | :-------------------------------- | :-------------------- | :-------------------- | :----------- | | Net Interest Income | $81.7 | $38.2 | +$43.5 | | FTE Net Interest Income | $83.2 | $39.2 | +$44.0 | | Provision for Credit Losses | ($0.039) (credit) | $1.3 (expense) | -$1.339 | | Noninterest Income | $12.5 | $6.9 | +$5.6 | | Noninterest Expense | $55.6 | $36.2 | +$19.4 | | Provision for Income Taxes | $6.7 | $0.9 | +$5.8 | | Effective Tax Rate | 17.3% | 11.80% | +5.5% | - Tax-equivalent interest income increased by $50.9 million to $129.2 million, driven by higher interest-earning assets (loans up $1.1 billion, investments up $103.4 million) and $8.5 million from accretion of purchase accounting marks on loans, primarily due to the FNCB merger[20] | Metric | H1 2025 | H1 2024 | Change (YoY) | | :-------------------------------- | :------ | :------ | :----------- | | Tax-equivalent yield on earning assets | 5.59% | 4.57% | +102 bps | | Loan Yields | 5.99% | 5.07% | +92 bps | | Investment Yields | 3.12% | 1.80% | +132 bps | | Cost of Interest-Bearing Liabilities | 2.59% | 2.99% | -40 bps | - Noninterest income increases were attributable to the increased size and scale of the Company post-merger, with notable increases in service charges and fees, a gain on sale of fixed assets, wealth management income, BOLI cash surrender value, and merchant services income[23] - Noninterest expense increased across almost all line items due to the FNCB merger and expanded operations, including a $10.0 million increase in salaries and employee benefits (195 additional FTEs) and a $3.6 million increase in occupancy and equipment expenses (technology costs, facilities costs)[24] - Amortization of intangible assets totaled $3.4 million[24] Balance Sheet Review Total assets, loans, and deposits remained substantial; deposits decreased due to seasonal outflows, but stockholders' equity increased, reflecting strong liquidity and a well-capitalized position | Metric | June 30, 2025 (in billions) | Dec 31, 2024 (in billions) | Change | | :-------------------- | :-------------------------- | :------------------------- | :----- | | Total Assets | $5.1 | $5.09 | +$0.01 | | Total Loans | $4.0 | $3.99 | +$0.01 | | Total Deposits | $4.3 | $4.41 | -$0.11 | | Total Investments | $0.583 | $0.607 | -$0.024| - Total loans increased by $4.0 million during the first six months of 2025, with increases in commercial, residential real estate, and equipment financing loans, partially offset by reductions in commercial real estate, indirect auto, and other consumer loans[26] - The unrealized loss on available-for-sale securities decreased by $7.5 million to $41.5 million at June 30, 2025[27] - Total deposits decreased by $120.2 million, primarily due to seasonal outflows of non-maturity deposits and reductions in brokered CDs[28] - Noninterest-bearing deposits decreased by $35.9 million, and interest-bearing deposits decreased by $84.3 million[28] - The deposit base at June 30, 2025, consisted of 42.0% retail, 37.2% commercial, 16.2% municipal, and 4.6% brokered deposits[29] - Estimated uninsured deposits were $1.3 billion (30.7% of total deposits)[29] - The Company maintained a well-capitalized position[31] - Stockholders' equity increased to $494.1 million ($49.44 per share) from $469.0 million ($46.94 per share) at December 31, 2024, mainly due to net income and a $5.7 million decrease in accumulated other comprehensive loss[31] - Tangible book value increased to $38.75 per share at June 30, 2025, from $35.88 per share at December 31, 2024[32] Asset Quality Review Asset quality improved significantly, with nonperforming assets decreasing both in absolute terms and as a percentage of total assets and loans | Metric | June 30, 2025 (in millions) | Dec 31, 2024 (in millions) | Change | | :-------------------------------- | :-------------------------- | :------------------------- | :----- | | Nonperforming Assets | $17.4 | $23.0 | -$5.6 | | NPA as % of Loans, Net, & Foreclosed Assets | 0.44% | 0.58% | -0.14% | | NPA as % of Total Assets | 0.34% | 0.45% | -0.11% | | Allowance for Credit Losses | $40.9 | $41.8 | -$0.9 | | ACL as % of Loans, Net | 1.02% | 1.05% | -0.03% | - The Company had no foreclosed property at June 30, 2025, compared to one recorded at $27 thousand at December 31, 2024[33] - During the six months ended June 30, 2025, net charge-offs totaled $0.8 million, and a credit to the provision for credit losses of $39 thousand was recorded[34] - For the three months ended June 30, 2025, net recoveries were $0.1 million, and a credit to the provision for credit losses was $0.2 million[34] Company Information About Peoples Financial Services Corp. Peoples Financial Services Corp. is the bank holding company for Peoples Security Bank and Trust Company, an independent community bank operating 39 full-service offices across Pennsylvania, New Jersey, and New York - Peoples Financial Services Corp. is the bank holding company for Peoples Security Bank and Trust Company[37] - The bank operates 39 full-service community banking offices in Pennsylvania, New Jersey, and New York[37] - It provides a comprehensive array of financial products and services to individuals, businesses, not-for-profit organizations, and government entities[37] - The business philosophy includes direct access to senior management, friendly service, and local, timely decision-making[37] Safe Harbor Forward-Looking Statements This section outlines the Company's forward-looking statements, cautioning against undue reliance due to various important factors that could cause actual results to differ materially - Statements regarding future financial or operating results are considered 'forward-looking statements' under the Securities Act of 1933 and the Securities Exchange Act of 1934[39] - Important factors that could cause actual results to differ materially include macroeconomic trends (interest rates, inflation), recession impacts, geopolitical conflicts, credit risks, liquidity access, regulatory changes, and the ability to realize anticipated benefits of the FNCB merger[40] - Peoples cautions against undue reliance on forward-looking statements and assumes no obligation to update them, except as required by law[40][41] Financial Tables Summary Data (Five Quarter Trend) This table provides a five-quarter trend of key performance data, including share and per share amounts, market values, and selected financial ratios, offering a quick overview of the Company's performance over time | Metric | June 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sept 30, 2024 | June 30, 2024 | | :-------------------------------- | :------------ | :----------- | :----------- | :------------ | :------------ | | Net income (loss) per share | $1.68 | $1.49 | $0.61 | $(0.43) | $0.46 | | Book value per share | $49.44 | $48.21 | $46.94 | $47.53 | $48.29 | | Tangible book value per share (1) | $38.75 | $37.35 | $35.88 | $36.24 | $39.31 | | Return on average assets | 1.36 % | 1.22 % | 0.47 % | (0.33)% | 0.37 % | | Efficiency ratio (1)(2) | 53.92 % | 55.77 % | 63.03 % | 53.14 % | 74.54 % | | Net interest margin (FTE) (1)(3) | 3.69 % | 3.50 % | 3.25 % | 3.26 % | 2.29 % | Consolidated Statements of Income These tables present the consolidated statements of income for both the three and six months ended June 30, 2025, and comparable prior periods, detailing interest income, interest expense, net interest income, provision for credit losses, noninterest income, noninterest expense, and net income Six Months Ended The consolidated statement of income for the six months ended June 30, 2025, shows a significant increase in net income to $31.965 million from $6.748 million in the prior year, driven by higher interest and noninterest income and a credit to the provision for credit losses | Metric (in thousands) | H1 2025 | H1 2024 | | :-------------------------------- | :------ | :------ | | Total interest income | $127,761| $77,373 | | Total interest expense | $46,016 | $39,139 | | Net interest income | $81,745 | $38,234 | | (Credit to) provision for credit losses | ($39) | $1,304 | | Total noninterest income | $12,503 | $6,947 | | Total noninterest expense | $55,615 | $36,230 | | Net income | $31,965 | $6,748 | | Net income - diluted per share | $3.18 | $0.95 | Three Months Ended The consolidated statement of income for the three months ended June 30, 2025, reports net income of $16.956 million, an increase from $15.009 million in the prior quarter, primarily due to higher net interest income and a credit to the provision for credit losses | Metric (in thousands) | Q2 2025 | Q1 2025 | Q2 2024 | | :-------------------------------- | :------ | :------ | :------ | | Total interest income | $65,335 | $62,426 | $38,376 | | Total interest expense | $23,138 | $22,878 | $19,460 | | Net interest income | $42,197 | $39,548 | $18,916 | | (Credit to) provision for credit losses | ($239) | $200 | $596 | | Total noninterest income | $6,247 | $6,256 | $3,554 | | Total noninterest expense | $28,262 | $27,353 | $18,171 | | Net income (loss) | $16,956 | $15,009 | $3,282 | | Net income - diluted per share | $1.68 | $1.49 | $0.46 | Net Interest Margin These tables provide a detailed breakdown of net interest margin on a fully taxable equivalent (FTE) basis, showing average balances, interest income/expense, and yields/rates for earning assets and interest-bearing liabilities for both three-month and six-month periods Three Months Ended The net interest margin (FTE) for the three months ended June 30, 2025, was 3.69%, an increase from 2.29% in the prior year, reflecting higher yields on earning assets and a managed cost of funds | Metric | Q2 2025 | Q2 2024 | | :-------------------------------- | :------ | :------ | | Total earning assets (average balance, in thousands) | $4,665,649 | $3,410,818 | | Total interest income (in thousands) | $66,053 | $38,847 | | Total interest-bearing liabilities (average balance, in thousands) | $3,574,266 | $2,599,681 | | Total interest expense (in thousands) | $23,138 | $19,460 | | Net interest income/spread (in thousands) | $42,915 | $19,387 | | Net interest margin | 3.69 % | 2.29 % | Six Months Ended For the six months ended June 30, 2025, the net interest margin (FTE) was 3.60%, significantly higher than 2.29% in the comparable prior year period, driven by increased earning asset yields and effective liability management | Metric | H1 2025 | H1 2024 | | :-------------------------------- | :------ | :------ | | Total earning assets (average balance, in thousands) | $4,662,260 | $3,446,252 | | Total interest income (in thousands) | $129,181 | $78,319 | | Total interest-bearing liabilities (average balance, in thousands) | $3,585,247 | $2,635,591 | | Total interest expense (in thousands) | $46,016 | $39,139 | | Net interest income/spread (in thousands) | $83,165 | $39,180 | | Net interest margin | 3.60 % | 2.29 % | Details of Net Interest Income and Net Interest Margin (Three Months Ended) This table provides a detailed five-quarter trend of net interest income and net interest margin on a fully taxable equivalent basis, breaking down interest income and expense by category and showing corresponding yields and rates | Metric | June 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sept 30, 2024 | June 30, 2024 | | :-------------------------------- | :------------ | :----------- | :----------- | :------------ | :------------ | | Total interest income (in thousands) | $66,053 | $63,128 | $66,504 | $69,004 | $38,847 | | Total interest expense (in thousands) | $23,138 | $22,878 | $27,292 | $29,040 | $19,460 | | Net interest income (in thousands) | $42,915 | $40,250 | $39,212 | $39,964 | $19,387 | | Total interest-earning assets yield | 5.68 % | 5.50 % | 5.51 % | 5.63 % | 4.58 % | | Total interest-bearing liabilities rate | 2.60 % | 2.58 % | 2.88 % | 3.04 % | 3.01 % | | Net interest spread | 3.08 % | 2.92 % | 2.62 % | 2.59 % | 1.57 % | | Net interest margin | 3.69 % | 3.50 % | 3.25 % | 3.26 % | 2.29 % | Consolidated Balance Sheets These tables present the consolidated balance sheets at period end and average quarterly balances, providing a comprehensive view of the Company's assets, liabilities, and stockholders' equity over several quarters At Period End The balance sheet at June 30, 2025, shows total assets of $5.108 billion, total liabilities of $4.614 billion, and total stockholders' equity of $494.096 million, reflecting changes in deposits, loans, and investments over the past five quarters | Metric (in thousands) | June 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sept 30, 2024 | June 30, 2024 | | :-------------------------------- | :------------ | :----------- | :----------- | :------------ | :------------ | | Total assets | $5,107,879 | $4,999,358 | $5,091,657 | $5,360,138 | $3,616,055 | | Total loans, net | $3,956,635 | $3,950,485 | $3,951,729 | $4,030,342 | $2,846,430 | | Total investments | $582,812 | $582,232 | $606,943 | $646,268 | $466,916 | | Total deposits | $4,287,349 | $4,316,927 | $4,407,552 | $4,637,864 | $3,064,959 | | Total liabilities | $4,613,783 | $4,517,504 | $4,622,707 | $4,885,087 | $3,275,248 | | Total stockholders' equity | $494,096 | $481,854 | $468,950 | $475,051 | $340,807 | Average Quarterly Balances This table presents average quarterly balances for key balance sheet items, including loans, investments, deposits, and total assets/liabilities/equity, providing insights into the Company's financial structure and trends over the past five quarters | Metric (in thousands) | June 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sept 30, 2024 | June 30, 2024 | | :-------------------------------- | :------------ | :----------- | :----------- | :------------ | :------------ | | Total assets | $5,014,334 | $5,008,677 | $5,203,459 | $5,291,194 | $3,609,066 | | Total loans, net | $3,990,056 | $3,978,679 | $4,035,702 | $4,068,634 | $2,859,819 | | Total investments | $627,323 | $642,982 | $628,945 | $700,564 | $529,564 | | Total deposits | $4,271,128 | $4,312,408 | $4,477,595 | $4,516,181 | $3,116,554 | | Total liabilities | $4,524,086 | $4,529,421 | $4,725,520 | $4,809,057 | $3,268,567 | | Stockholders' equity | $490,248 | $479,256 | $477,939 | $482,137 | $340,499 | Loan and Asset Quality Data This table provides a detailed breakdown of the loan portfolio by type and presents key asset quality metrics, including nonperforming assets, nonaccrual/restructured loans, and the allowance for credit losses, over the past five quarters | Loan Category (in thousands) | June 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sept 30, 2024 | June 30, 2024 | | :-------------------------------- | :------------ | :----------- | :----------- | :------------ | :------------ | | Commercial | $873,068 | $852,997 | $836,020 | $890,079 | $632,005 | | Real estate | $2,826,438 | $2,835,308 | $2,845,496 | $2,860,178 | $2,163,323 | | Consumer | $118,547 | $123,028 | $132,869 | $145,960 | $74,225 | | Equipment Financing | $179,472 | $180,206 | $179,120 | $173,466 | N/A | | Total Loans | $3,997,525 | $3,991,539 | $3,993,505 | $4,069,683 | $2,869,553 | | Nonperforming assets (in thousands) | $17,462 | $23,684 | $22,984 | $21,545 | $7,143 | | Allowance for credit losses (in thousands) | $40,890 | $41,054 | $41,776 | $39,341 | $23,123 | Deposit and Liquidity Detail This section provides a detailed breakdown of the Company's deposit base by type and customer segment, along with an overview of available liquidity sources, including FHLB advances, Federal Reserve Discount Window, and brokered deposits | Deposit Category (in thousands) | June 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sept 30, 2024 | June 30, 2024 | | :-------------------------------- | :------------ | :----------- | :----------- | :------------ | :------------ | | Total interest-bearing deposits | $3,387,752 | $3,415,529 | $3,472,036 | $3,710,000 | $2,443,988 | | Noninterest-bearing deposits | $899,597 | $901,398 | $935,516 | $927,864 | $620,971 | | Total deposits | $4,287,349 | $4,316,927 | $4,407,552 | $4,637,864 | $3,064,959 | | Deposit Detail (June 30, 2025) | Amount (in thousands) | Percent of Total | | :------------------------------- | :-------------------- | :--------------- | | Retail | $1,799,773 | 42.0 % | | Commercial | $1,592,947 | 37.2 | | Municipal | $696,601 | 16.2 | | Brokered | $198,028 | 4.6 | | Total Deposits | $4,287,349 | 100.0 % | | Uninsured | $1,315,345 | 30.7 % | | Liquidity Source (June 30, 2025, in thousands) | Total Available | Outstanding | Available for Future Liquidity | | :----------------------------------------------- | :-------------- | :---------- | :----------------------------- | | FHLB advances | $1,647,028 | $514,902 | $1,132,126 | | Federal Reserve - Discount Window | $426,801 | | $426,801 | | Correspondent bank lines of credit | $18,000 | | $18,000 | | Brokered deposits | $766,182 | $198,028 | $568,154 | | Unencumbered securities | $174,563 | | $174,563 | | Total sources of liquidity | $3,032,574 | $712,930 | $2,319,644 | Reconciliation of Non-GAAP Financial Measures These tables provide detailed reconciliations of non-GAAP financial measures to their most directly comparable GAAP measures, including core net income, tangible book value, core return ratios, and pre-provision net revenue (PPNR), for both three-month and six-month periods Three Months Ended This table reconciles non-GAAP measures such as core net income per share, tangible book value per share, and various core return ratios for the three months ended June 30, 2025, and prior quarters, adjusting for items like acquisition-related expenses and ACL provisions for FNCB acquired loans | Metric | June 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sept 30, 2024 | June 30, 2024 | | :-------------------------------- | :------------ | :----------- | :----------- | :------------ | :------------ | | Net income (loss) GAAP (in thousands) | $16,956 | $15,009 | $6,087 | $(4,337) | $3,282 | | Core net income (in thousands) | $17,008 | $15,129 | $9,988 | $16,489 | $4,231 | | Core net income per diluted share | $1.69 | $1.51 | $0.99 | $1.64 | $0.59 | | Tangible book value per share | $38.75 | $37.35 | $35.88 | $36.24 | $39.31 | | Core return on average assets | 1.36 % | 1.23 % | 0.76 % | 1.24 % | 0.47 % | | Core PPNR per share (non-GAAP) | $2.03 | $1.83 | $1.46 | $1.83 | $0.73 | Six Months Ended This table reconciles non-GAAP measures for the six months ended June 30, 2025, and 2024, including core net income per share, core return on average stockholders' equity, and core PPNR per share, providing a clearer view of underlying operational performance | Metric | H1 2025 | H1 2024 | | :-------------------------------- | :------ | :------ | | Net income GAAP (in thousands) | $31,965 | $6,748 | | Core net income (in thousands) | $32,137 | $8,122 | | Core net income per diluted share | $3.19 | $1.14 | | Core return on average assets | 1.29 % | 0.45 % | | Core PPNR per share (non-GAAP) | $3.86 | $1.52 | FTE Net Interest Income and Efficiency Ratio This table reconciles FTE net interest income and the efficiency ratio to GAAP measures for both three-month and six-month periods, providing transparency on how these non-GAAP metrics are derived and their impact on financial analysis | Metric (in thousands) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Net interest income adjusted to FTE (non-GAAP) | $42,915 | $19,387 | $83,165 | $39,180 | | Efficiency ratio (non-GAAP) | 53.92 % | 74.54 % | 54.81 % | 75.14 % |