Cavalry Bancorp, Inc. Reports Third Quarter Earnings.Business Editors 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.--(BUSINESS WIRE)--Oct. 19, 2001 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 See NetWare Management System. :CAVB) announced today 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 Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. Cavalry Banking ("Bank") and the Company. Net income for the three months ended September September: see month. 30, 2001 was $1.0 million or $0.16 per share compared to $1.2 million or $0.18 per share for the three months ended September 30, 2000. The decrease in earnings was a result of declining net interest margins, increased provisions for loan losses, and increased operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . These declines were partially offset by increases in non-interest income. Net income for the nine months ended September 30, 2001 was $2.9 million or $0.45 per share compared to $3.1 million or $0.49 per share for the nine months ended September 30, 2000. The decrease in earnings was a result of declines in net interest margins, increased provisions for loan losses, and increased operating expenses. These declines were partially offset by increases in non-interest income. Total assets of the Company were $418.8 at September 30, 2001, compared to $384.3 million at December December: see month. 31, 2000. Deposits also increased 9.27% from $336.5 million at December 31, 2000 to $367.7 million at September 30, 2001. "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: The statements contained in this release which are not historical facts contain forward looking information with respect to plans, projections or future performance of the Company, the occurrence of which involve certain risks and uncertainties detailed in the Company's filings with the Securities and Exchange Commission.
Cavalry Bancorp, Inc
Consolidated Balance Sheets
(Unaudited)
(In thousands, except share data)
At At
Assets September 30 December 31
------
2001 2000
---- ----
Cash $ 18,604 $ 18,025
Interest-bearing deposits
with other financial
institutions 30,405 27,000
Investments available-for-
sale, at fair value 59,739 32,247
Mortgage-backed securities
held to maturity, at cost 553 594
Loans held for sale, at
estimated fair value 8,542 4,183
Loans receivable, net 278,010 279,478
Accrued interest
receivable 2,765 2,559
Office properties and
equipment, net 15,742 15,255
Federal Home Loan Bank of
Cincinnati stock, at cost 2,130 2,020
Real estate and other
assets aquired in
settlement of loans 169 86
Other assets 2,172 2,838
----- -----
Total assets 418,831 384,285
------------ ======= =======
Liabilities and Equity
Liabilities:
Deposits $ 367,749 $ 336,534
Borrowings 1,012 1,578
Accounts payable and other
liabilities 2,314 2,202
----- -----
Total liabilities 371,075 340,314
----------------- ------- -------
Equity
Preferred Stock, no par value
Authorized - 250,000
shares; none issued or
outstanding at September
30, 2001 and December
31, 2000 - -
Common Stock, no par value
Authorized- 49,750,000
shares; issued and
outstanding 7,104,801 at
September 30, 2001 and
December 31, 2000 11,786 11,489
Retained earnings 41,991 39,991
Unearned restricted stock (2,499) (3,224)
Unallocated ESOP shares (3,908) (4,380)
Accumulated other
comprehensive income,
net of tax 386 95
---- --
Total Equity 47,756 43,971
------------ ------- ------
Total Liabilities and Equity 418,831 384,285
---------------------------- ======= =======
Cavalry Bancorp,Inc
Consolidated Statements of Operations
Unaudited
(In thousands, except per share data)
Three Months Ended Nine Months Ended
September 30 September 30
------------ ------------
2001 2000 2001 2000
Interest and dividend
income:
Loans $ 5,845 $ 6,651 $ 18,523 $ 19,199
Investment securities 806 446 2,038 1,142
Deposits with other
financial institutions 270 431 1,025 1,345
Mortgage-backed
securities held to
maturity 10 10 31 31
--- --- --- ---
Total interest and
dividend income 6,931 7,538 21,617 21,717
------ ------ ------- ------
Interest expense -
deposits 3,168 3,248 10,263 9,311
Interest expense -
borrowings 6 15 25 160
-- --- --- ---
Total interest expense 3,174 3,263 10,288 9,471
Net interest income 3,757 4,275 11,329 12,246
------ ------ ------- ------
Provision for loan
losses 82 - 248 141
--- -- ---- ---
Net interest income
after provision for
loan losses 3,675 4,275 11,081 12,105
------ ------ ------- ------
Non-interest income:
Loan servicing income 59 60 196 191
Gain on sale of loans,
net 571 419 1,583 1,175
Gain on sale of office
properties and
equipment - (16) - 2
Deposit servicing fees
and charges 922 665 2,748 1,844
Trust fees 297 267 882 801
Other operating income 160 67 487 246
---- --- ---- ---
Total noninterest
income 2,009 1,462 5,896 4,259
------ ------ ------ -----
Non-interest expenses:
Compensation, payroll
taxes and fringe
benefits 2,441 2,457 7,272 7,063
Occupancy expense 246 174 732 523
Supplies,
communications, and
other office expenses 214 192 674 592
Federal insurance
premiums 17 16 48 47
Advertising expense 61 52 266 204
Equipment and service
bureau expense 607 512 1,780 1,536
Other operating expense 369 350 1,145 1,078
---- ---- ------ -----
Total non-interest
expense 3,955 3,753 11,917 11,043
------ ------ ------- ------
Earnings before income
tax expense 1,729 1,984 5,060 5,321
Income tax expense 709 815 2,130 2,213
---- ---- ------ -----
Net income 1,020 1,169 2,930 3,108
------ ------ ------ -----
Basic and Diluted
Earnings Per Share $ 0.16 $ 0.18 $ 0.45 $ 0.49
Weighted average
shares outstanding -
Basic 6,493,217 6,397,364 6,469,163 6,353,054
Weighted average
shares outstanding -
Diluted 6,529,616 6,397,364 6,539,280 6,353,054
Cavalry Bancorp, Inc
Consolidated Financial
Highlights
(unaudited)
(dollars in thousands)
September December
30 31 %
2001 2000 Change
---- ---- ------
FINANCIAL CONDITION DATA:
Total assets 418,831 384,285 8.99%
Loans receivable, net 278,010 279,478 -0.53%
Loans held-for-sale 8,542 4,183 104.21%
Investment securities available-
for-sale 59,739 32,247 85.25%
Mortgage-backed securities held-
to-maturity 553 594 -6.90%
Cash, federal funds sold and
overnight interest-bearing
deposits 49,009 45,025 8.85%
Deposit accounts 367,749 336,534 9.28%
Borrowings 1,012 1,578 -35.87%
Equity 47,756 43,971 8.61%
For the quarter ending
September 30
-------------------------- %
2001 2000 Change
---- ---- ------
OPERATING DATA:
Interest income 6,931 7,538 -8.05%
Interest expense 3,174 3,263 -2.73%
Net interest income 3,757 4,275 -12.12%
Provision for loan losses 82 0 0.00%
Net interest income
after provision for loan losses 3,675 4,275 -14.04%
Gains from sale of loans 571 419 36.28%
Other income 1,438 1,043 37.87%
Other expenses 3,955 3,753 5.38%
Income before income taxes 1,729 1,984 -12.85%
Provision for income taxes 709 815 -13.01%
Net earnings 1,020 1,169 -12.75%
For the nine months ending
September 30
-------------------------- %
2001 2000 Change
---- ---- ------
OPERATING DATA:
Interest income 21,617 21,717 -0.46%
Interest expense 10,288 9,471 8.63%
Net interest income 11,329 12,246 -7.49%
Provision for loan losses 248 141 75.89%
Net interest income
after provision for loan losses 11,081 12,105 -8.46%
Gains from sale of loans 1,583 1,175 34.72%
Other income 4,313 3,084 39.85%
Other expenses 11,917 11,043 7.91%
Income before income taxes 5,060 5,321 -4.91%
Provision for income taxes 2,130 2,213 -3.75%
Net earnings 2,930 3,108 -5.73%
For The Quarter Ending For The Nine Months Ending
September 30, September 30,
---------------------- --------------------------
2001 2000 2001 2000
---- ---- ---- ----
KEY FINANCIAL RATIOS
Performance Ratios:
Return on average
assets 0.99% 1.26% 0.99% 1.15%
Return on average
equity 8.66% 11.16% 8.62% 10.31%
Interest rate spread 3.42% 4.48% 3.56% 4.33%
Net interest margin 4.01% 5.13% 4.19% 4.96%
Average interest-
earning assets to
average interest-
bearing liabilities 117.30% 117.37% 116.69% 116.37%
Noninterest expense
as a percent of
average total assets 3.85% 4.06% 4.03% 4.07%
Efficiency ratio 68.59% 65.42% 69.18% 66.91%
Asset Quality Ratios:
Nonaccrual and 90
days or more past
due loans as a
percent of total
loans, net 0.11% 0.20%
Nonperforming assets
as a percent of
total assets 0.12% 0.16%
Allowance for losses
as a percent of total
loans receivable 1.49% 1.49%
Net charge-offs to
average outstanding
loans 0.03% 0.03% 0.12% 0.04%
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