Cavalry Bancorp, Inc. Reports Third Quarter Earnings.MURFREESBORO Murfreesboro (mûr`frēzbûr'ə), city (1990 pop. 44,922), seat of Rutherford co., central Tenn., on Stones River; inc. 1817. It is the processing center of a dairy, livestock, and farm area. , Tenn. -- Cavalry cavalry, a military force consisting of mounted troops trained to fight from horseback. Horseback riding probably evolved independently in the Eurasian steppes and the mountains above the Mesopotamian plain. By 1400 B.C. Bancorp, Inc. (the "Company") (Nasdaq/NMS:CAVB) announced today third quarter and year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: earnings for its wholly-owned subsidiary Cavalry Banking ("Bank") and the Company. Net income increased from $1.3 million or $0.19 per share diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. for the quarter ended September September: see month. 30, 2003 to $1.5 million or $0.22 per share diluted for the quarter ended September 30, 2004. Annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. return on average assets increased from 1.07% for the quarter ended September 30, 2003 to 1.10% for the quarter ended September 30, 2004. Annualized return on average equity increased from 9.60% for the quarter ended September 30, 2003 to 10.51% for the quarter ended September 30, 2004. Net income was $3.7 million or $0.56 per share diluted for the nine months ended September 30, 2003 and $3.7 million or $0.55 per share diluted for the nine months ended September 30, 2004. Annualized return on average assets decreased from 1.10% for the nine months ended September 30, 2003 to 0.95% for the nine months ended September 30, 2004. Annualized return on average equity decreased from 9.76% for the nine months ended September 30, 2003 to 8.82% for the nine months ended September 30, 2004. This increase in earnings for the quarter was a result of increased net interest income, increased deposit servicing fees and decreased non-interest expense. These factors were partially offset by increased provision for loan losses and decreased gain on sale of loans. Net interest income increased 23.69% from $4.1 million for the quarter ended September 30, 2003, to $5.1 million for the same period in 2004. Gain on sale of loans decreased 47.90% from $1.7 million for the quarter ended September 30, 2003 to $879,000 for the same period in 2004. Other income increased 7.93% from $2.4 million for the quarter ended September 30, 2003, to $2.6 million for the same period in 2004. Other expenses for the quarter ended September 30, 2004 decreased $179,000 or 2.95% from the quarter ended September 30, 2003. This decrease in earnings for the nine months was a result of decreased gain on sale of loans, and increased non-interest expense. These factors were partially offset by increased interest income, increased other non-interest income and a decline in interest expense. Net interest income increased 18.00% from $12.0 million for the nine months ended September 30, 2003, to $14.2 million for the same period in 2004. Gain on sale of loans decreased 51.58% from $4.7 million for the nine months ended September 30, 2003 to $2.3 million for the same period in 2004. Other income increased 9.46% from $7.0 million for the nine months ended September 30, 2003, to $7.6 million for the same period in 2004. Other expenses increased 0.59% from $17.5 million for the nine months ended September 30, 2003, to $17.6 million for the same period in 2004. Total assets of the Company increased from $515.2 million at December December: see month. 31, 2003 to $551.9 million at September 30, 2004. Net loans receivable increased from $350.4 million at December 31, 2003 to $413.8 million at September 30, 2004. Loans held-for-sale decreased from $2.6 million at December 31, 2003 to $2.4 million at September 30, 2004. Deposits increased from $454.3 million at December 31, 2003 to $486.3 million at September 30, 2004. The Company has grown assets $76.2 million or 16.02% from September 30, 2003 to September 30, 2004. During this period from September 30, 2003 to September 30, 2004 loans have grown $79.5 million or 23.62% and deposits have grown $72.2 million or 17.44%. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: Certain of these statements contained in this release which are not historical facts are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements, including the uncertainties inherent in the process of auditing and making end-of-year adjustments to a corporation's financial statements. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. or changes after the date of this release.
Cavalry Bancorp, Inc.
Consolidated Balance Sheets
(Unaudited)
(In thousands, except per share data)
September 30, December 31,
Assets 2004 2003
------ --------------------------
Cash and cash equivalents $56,040 $70,913
Investment securities available-for-sale, at
fair value 43,707 55,123
Loans held for sale, at estimated fair value 2,438 2,648
Loans receivable, net of allowances for loan
losses of $4,728 at September 30, 2004 and
$4,525 at December 31, 2003 413,788 350,412
Accrued interest receivable 1,813 1,668
Office properties and equipment, net 17,822 18,431
Required investments in stock of the Federal
Home Loan Bank and Federal Reserve Bank
stock, at cost 3,099 2,992
Foreclosed assets 13 -
Bank owned life insurance 8,499 8,308
Goodwill 1,772 1,772
Other assets 2,911 2,905
--------------------------
Total assets 551,902 515,172
==========================
Liabilities
-----------
Liabilities:
Deposits:
Non-interest-bearing $90,212 $72,443
Interest-bearing 396,134 381,814
--------------------------
486,346 454,257
Advances from Federal Home Loan Bank of
Cincinnati 2,848 2,889
Accrued expenses and other liabilities 6,072 3,599
--------------------------
Total liabilities 495,266 460,745
--------------------------
Shareholders' Equity
--------------------
Preferred Stock, no par value Authorized -
250,000 shares; none issued or outstanding
at September 30, 2004 and December 31, 2003 - -
Common Stock, no par value Authorized -
49,750,000 shares; issued and outstanding
6,741,752 and 6,834,873 at September 30,
2004, and December 31, 2003 9,439 10,175
Retained earnings 49,142 46,633
Unallocated ESOP shares (1,839) (2,373)
Accumulated other comprehensive loss, net of
tax (106) (8)
--------------------------
Total Shareholders'
equity 56,636 54,427
--------------------------
Total Liabilities and Shareholders' Equity 551,902 515,172
------------------------------------------ ==========================
Cavalry Bancorp,Inc
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
2004 2003 2004 2003
Interest income:
Loans $ 5,994 5,055 $ 16,839 15,124
Investment securities 368 307 1,053 896
Other 120 82 261 309
---------- ---------- ---------- ----------
Total interest income 6,482 5,444 18,153 16,329
---------- ---------- ---------- ----------
Interest expense -
deposits 1,367 1,303 3,880 4,221
Interest expense -
borrowings 24 25 73 74
---------- ---------- ---------- ----------
Total interest expense 1,391 1,328 3,953 4,295
---------- ---------- ---------- ----------
Net interest income 5,091 4,116 14,200 12,034
Provision for loan losses 176 - 352 101
---------- ---------- ---------- ----------
Net interest income after
provision for loan
losses 4,915 4,116 13,848 11,933
---------- ---------- ---------- ----------
Non-interest income:
Servicing income 47 45 140 176
Gain on sale of loans,
net 879 1,687 2,281 4,711
Gain (loss) on sale of
investment securities,
net (81) - (3) 11
Deposit servicing fees
and charges 1,457 1,208 3,992 3,455
Trust service fees 266 246 832 740
Commissions and other
non-banking fees 649 676 1,899 1,995
Other operating income 221 196 754 579
---------- ---------- ---------- ----------
Total non-interest income 3,438 4,058 9,895 11,667
---------- ---------- ---------- ----------
Non-interest expenses:
Salaries and employee
benefits 3,603 3,962 10,834 11,498
Occupancy expense 329 346 984 979
Supplies, communications,
and other office
expenses 223 286 706 791
Advertising expense 87 107 404 330
Professional fees 257 130 656 365
Equipment and service
bureau expense 890 780 2,557 2,211
Other operating expense 491 448 1,464 1,327
---------- ---------- ---------- ----------
Total non-interest
expense 5,880 6,059 17,605 17,501
---------- ---------- ---------- ----------
Income before income tax
expense 2,473 2,115 6,138 6,099
Income tax expense 994 835 2,475 2,373
---------- ---------- ---------- ----------
Net income $ 1,479 1,280 $ 3,663 3,726
========== ========== ========== ==========
Basic Earnings Per Share $ 0.23 0.20 $ 0.57 0.58
Diluted Earnings Per
Share $ 0.22 0.19 $ 0.55 0.56
Weighted average shares
outstanding - Basic 6,441,148 6,418,261 6,463,810 6,392,235
Weighted average shares
outstanding - Diluted 6,675,920 6,713,772 6,700,546 6,666,276
Cavalry Bancorp, Inc.
Consolidated Financial
Highlights
(unaudited)
(dollars in thousands)
September December
30, 31, %
2004 2003 Change
---- ---- ------
FINANCIAL CONDITION
DATA:
Total assets $551,902 515,172 7.13%
Loans receivable,
net 413,788 350,412 18.09%
Loans held-for-
sale 2,438 2,648 -7.93%
Investment
securities
available-for-
sale 43,707 55,123 -20.71%
Cash and cash
equivalents 56,040 70,913 -20.97%
Deposits 486,346 454,257 7.06%
Borrowings 2,848 2,889 -1.42%
Shareholders'
Equity 56,636 54,427 4.06%
For the quarters ending For the nine months ending
September 30, % September 30, %
---------------- -----------------
2004 2003 Change 2004 2003 Change
------- ------- ------- -------- ------- -------
OPERATING DATA:
Interest income $6,482 5,444 19.07% $18,153 16,329 11.17%
Interest expense 1,391 1,328 4.74% 3,953 4,295 -7.96%
Net interest
income 5,091 4,116 23.69% 14,200 12,034 18.00%
Provision for loan
losses 176 - 0.00% 352 101 248.51%
Net interest
income
after provision
for loan losses 4,915 4,116 19.41% 13,848 11,933 16.05%
Gains from sale of
loans 879 1,687 -47.90% 2,281 4,711 -51.58%
Other income 2,559 2,371 7.93% 7,614 6,956 9.46%
Other expenses 5,880 6,059 -2.95% 17,605 17,501 0.59%
Income before
income taxes 2,473 2,115 16.93% 6,138 6,099 0.64%
Income tax expense 994 835 19.04% 2,475 2,373 4.30%
Net income $1,479 1,280 15.55% $3,663 3,726 -1.69%
For the quarters ending For the nine months ending
September 30, September 30,
----------------------- --------------------------
2004 2003 2004 2003
---- ---- ---- ----
KEY FINANCIAL
RATIOS
Performance
Ratios:
Return on average
assets 1.10% 1.07% 0.95% 1.10%
Return on average
shareholders'
equity 10.51% 9.60% 8.82% 9.76%
Interest rate
spread 3.89% 3.65% 3.84% 3.83%
Net interest
margin 4.17% 3.88% 4.07% 4.05%
Average interest-
earning assets to
average interest-
bearing
liabilities 125.35% 118.57% 121.43% 114.70%
Non-interest
expense as a
percent of
average total
assets 4.39% 5.06% 4.55% 5.18%
Efficiency ratio 68.94% 74.13% 73.06% 73.84%
Asset Quality
Ratios:
Nonaccrual and 90
days or more past
due loans as a
percent of total
loans, net 0.29% 0.23%
Nonperforming
assets as a
percent of total
assets 0.22% 0.18%
Allowance for loan
losses as a
percent of total
loans receivable 1.14% 1.38%
Net charge-offs to
average
outstanding loans 0.01% 0.01% 0.04% 0.06%
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