Cavalry Bancorp (NASDAQ:CAVB)
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From Jun 2019 to Jun 2024
Cavalry Bancorp, Inc. (the "Company") (Nasdaq NMS: CAVB)
announced today fourth quarter and year-to-date financial results for
its wholly-owned subsidiary Cavalry Banking (the "Bank") and the
Company.
FOURTH QUARTER 2005 HIGHLIGHTS:
-- Strong Earnings Growth
-- Net income after merger related charges of $1.1 million,
or $0.15 per share diluted, compared to the prior year's
net loss of $3.2 million or $(0.48) per share diluted.
-- Annualized return on average assets after merger related
charges of 0.68 percent for the fourth quarter compared to
negative 2.28 percent for the same quarter last year.
-- Annualized return on average shareholders' equity after
merger related charges of 7.26 percent for the fourth
quarter compared to negative 23.19 percent for the same
quarter last year.
-- Net interest margin of 4.55 percent for the fourth quarter
compared to 4.14 percent for the same quarter last year.
-- Strong balance sheet growth:
-- Loans at December 31, 2005 of $505.8 million, up 17.49
percent from December 31, 2004 and 24.55 percent on an
annualized basis from September 30, 2005.
-- Deposits at December 31, 2005 of $572.8 million, up 13.09
percent from December 31, 2004 and 6.17 percent on an
annualized basis from September 30, 2005.
-- Superior credit quality:
-- Net charge-offs to average loans of 0.05 percent for the
fourth quarter of 2005.
-- Nonperforming loans of 0.18 percent of total loans.
In connection with the pending merger with Pinnacle Financial
Partners, the Company incurred merger related expenses of $1.1 million
(net of taxes) during the fourth quarter of 2005, reducing diluted
earnings per share by $0.15 for the quarter ended December 31, 2005.
Without these merger related charges, annualized return on average
assets and return on average equity for the fourth quarter of 2005
would have been 1.37 percent and 14.73 percent, respectively. "We have
spent much of the last two years repositioning the balance sheet and
income statement of this company with the objective of becoming a
truly high performing commercial bank. We are extremely pleased with
the profitability and return ratios we are now achieving and how they
compare to high performing peers," said Ed C. Loughry, Jr., Chairman
and CEO.
Total assets of the Company increased 10.31 percent from $578.7
million at December 31, 2004 to $638.3 million at December 31, 2005.
Net loans receivable increased 17.49 percent from $430.5 million at
December 31, 2004 to $505.8 million at December 31, 2005. Deposits
increased 13.09 percent from $506.5 million at December 31, 2004 to
$572.8 million at December 31, 2005.
Net income increased from $429,000 or $0.06 per share diluted for
the year ended December 31, 2004 to $7.3 million or $1.00 per share
diluted for the year ended December 31, 2005. Return on average assets
increased from 0.08 percent for the year ended December 31, 2004 to
1.22 percent for the year ended December 31, 2005. Return on average
shareholders' equity increased from 0.77 percent for the year ended
December 31, 2004 to 12.81 percent for the year ended December 31,
2005.
Earnings for the year ended December 31, 2005 include a tax
benefit of $427,000. This tax benefit resulted from the distribution
of cash dividends to the participants of the Employee Stock Ownership
Plan. Exclusive of the merger related expense of $1.1 million (net of
taxes) and the tax benefit of $427,000 associated with the
distribution of cash dividends to the participants of the Employee
Stock Ownership Plan, return on average assets and return on average
shareholders' equity for the year ending December 31, 2005 would have
been 1.33 percent and 14.02 percent, respectively. Earnings for the
year ended December 31, 2004 include a one-time charge associated with
fully funding the Company's Employee Stock Ownership Plan of $4.4
million (net of taxes). Exclusive of this charge, return on average
assets and return on average shareholders' equity for the year ending
December 31, 2004 would have been 0.92 percent and 8.72 percent,
respectively.
"Loan demand during the fourth quarter was extremely strong
reflecting the growth of the Rutherford county market and our
associates' continued focus on serving our customers. We are also
excited that our marketing pipelines indicate that strong loan growth
should continue in the first quarter of 2006 as well. As we move
toward the finalization of our merger with Pinnacle, we are very
pleased by the growing momentum we experienced during the fourth
quarter in terms of loan growth, margin expansion and operating
efficiencies," said Bill Jones, Executive Vice President and Chief
Administrative Officer.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: Certain of these statements contained in this
release which are not historical facts are forward-looking statements
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 and those risks identified in our
Quarterly Report on Form 10-Q for the quarter ended September 30,
2005. By making these forward-looking statements, the Company
undertakes no obligation to update these statements for revisions or
changes after the date of this release.
Additional Information and Where to Find It
Investors and security holders may obtain free copies of our and
Pinnacle's joint proxy statement/prospectus related to the proposed
merger through the website maintained by the SEC at
http://www.sec.gov. Free copies of the joint proxy
statement/prospectus also may be obtained by directing a request by
telephone or mail to Pinnacle Financial Partners Inc., 211 Commerce
Street, Suite 300, Nashville, TN 37201, Attention: Investor Relations
(615) 744-3710 or Cavalry Bancorp, Inc., 114 West College Street, P.O.
Box 188, Murfreesboro, TN 37133, Attention: Investor Relations (615)
849-3313.
This communication shall not constitute an offer to sell or the
solicitation of an offer to buy securities, nor shall there be any
sale of securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of such jurisdiction.
To supplement the Company's consolidated financial statements
presented in accordance with GAAP, the Company is disclosing non-GAAP
net income and non-GAAP EPS, both of which are defined as non-GAAP
financial measures by the SEC. The presentation of this non-GAAP
financial information is not intended to be considered independently
or as a substitute for the financial information prepared and
presented in accordance with GAAP. Because non-GAAP net income and
non-GAAP EPS are not measurements determined in accordance with GAAP
and are susceptible to varying calculations, non-GAAP net income and
non-GAAP EPS, as presented, may not be comparable to other similarly
titled measures presented by other companies. The Company's management
believes that these non-GAAP financial measures provide meaningful
supplemental information regarding the performance of the Company's
core business, excluding certain one-time expenditures that are not
expected to occur again in future periods. These non-GAAP financial
measures facilitate management's internal comparisons to the Company's
historical performance as well as to our competitors' operating
results. The Company included these non-GAAP financial measures to
provide investors with the information management believes is
necessary to more clearly assess the Company's performance for the
periods presented.
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Cavalry Bancorp, Inc.
Consolidated Balance Sheets
(Unaudited)
(In thousands, except per share data)
December 31, December 31,
Assets 2005 2004
--------------------------------------------- ----------- -----------
Cash and cash equivalents $ 49,623 $ 63,135
Investment securities available-for-sale, at
fair value 41,008 42,183
Loans held for sale, at estimated fair value 1,170 2,501
Loans receivable, net of allowances for loan
losses of $5,247 at December 31, 2005 and
$4,863 at December 31, 2004 505,834 430,526
Accrued interest receivable 2,725 1,985
Office properties and equipment, net 16,316 17,607
Required investments in stock of the Federal
Home Loan Bank and Federal Reserve Bank, at
cost 3,354 3,125
Foreclosed assets 54 16
Bank owned life insurance 12,139 11,604
Goodwill 1,772 1,772
Other assets 4,329 4,216
----------- -----------
Total assets 638,324 578,670
=========== ===========
Liabilities
---------------------------------------------
Deposits:
Non-interest-bearing $ 111,548 $ 81,719
Interest-bearing 461,272 424,815
----------- -----------
572,820 506,534
Advances from Federal Home Loan Bank of
Cincinnati 2,780 2,835
Dividends payable - 11,332
Accrued expenses and other liabilities 4,181 4,136
----------- -----------
Total liabilities 579,781 524,837
----------- -----------
Shareholders' Equity
---------------------------------------------
Preferred Stock, no par value Authorized -
250,000 shares; none issued or outstanding
at December 31, 2005 and December 31, 2004 - -
Common Stock, no par value Authorized-
49,750,000 shares; issued and outstanding
7,217,565 at December 31, 2005, and December
31, 2004 19,354 19,354
Retained earnings 39,766 34,598
Accumulated other comprehensive loss, net of
tax (577) (119)
----------- -----------
Total shareholders' equity 58,543 53,833
----------- -----------
Total Liabilities and Shareholders' Equity 638,324 578,670
--------------------------------------------- =========== ===========
Cavalry Bancorp, Inc.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share data)
Three Months Ended Year Ended
December 31, December 31,
----------------------- -----------------------
2005 2004 2005 2004
Interest income:
Loans $ 8,551 $ 6,344 $ 29,632 $ 23,183
Investment securities:
Taxable 381 337 1,296 1,315
Non-taxable 76 27 160 101
Other 482 207 1,817 469
---------- ---------- ---------- ----------
Total interest income 9,490 6,915 32,905 25,068
---------- ---------- ---------- ----------
Interest expense:
Deposits 2,804 1,577 9,190 5,458
Borrowings 24 25 96 97
---------- ---------- ---------- ----------
Total interest expense 2,828 1,602 9,286 5,555
---------- ---------- ---------- ----------
Net interest income 6,662 5,313 23,619 19,513
Provision for loan
losses 516 523 728 875
---------- ---------- ---------- ----------
Net interest income
after provision for
loan losses 6,146 4,790 22,891 18,638
---------- ---------- ---------- ----------
Non-interest income:
Servicing income 55 47 219 186
Gain on sale of loans,
net 259 492 1,243 2,773
Deposit servicing fees
and charges 1,483 1,371 5,768 5,362
Trust service fees 373 265 1,193 1,097
Commissions and other
non-banking fees 634 579 2,739 2,477
Other operating income 371 267 1,170 1,003
---------- ---------- ---------- ----------
Total non-interest
income 3,175 3,021 12,332 12,898
---------- ---------- ---------- ----------
Non-interest expenses:
Salaries and employee
benefits 4,747 8,370 14,413 19,205
Occupancy expense 355 417 1,274 1,395
Supplies,
communications, and
other office expenses 254 239 948 946
Advertising expense 90 175 379 578
Professional fees 590 378 1,121 1,033
Equipment and service
bureau expense 1,261 956 4,028 3,507
Loss on sale of
investment securities,
net - 19 - 22
Other operating expense 501 431 2,004 1,887
---------- ---------- ---------- ----------
Total non-interest
expense 7,798 10,985 24,167 28,573
---------- ---------- ---------- ----------
Income (loss) before
income tax expense 1,523 (3,174) 11,056 2,963
Income tax expense 438 59 3,723 2,534
---------- ---------- ---------- ----------
Net income (loss) $ 1,085 $ (3,233) $ 7,333 $ 429
========== ========== ========== ==========
Basic Earnings (Loss)
Per Share $ 0.15 $ (0.48) $ 1.02 $ 0.07
Diluted Earnings (Loss)
Per Share $ 0.15 $ (0.48) $ 1.00 $ 0.06
Weighted average shares
outstanding - Basic 7,217,565 6,754,189 7,217,565 6,536,801
Weighted average shares
outstanding - Diluted 7,331,259 6,754,189 7,328,744 6,779,184
Cavalry Bancorp, Inc.
Consolidated Financial
Highlights
(Unaudited)
(Dollars in thousands)
December December
31, 31, %
2005 2004 Change
-------- ------- -------
FINANCIAL CONDITION
DATA:
Total assets $638,324 $578,670 10.31%
Loans receivable,
net 505,834 430,526 17.49%
Loans held-for-sale 1,170 2,501 -53.22%
Investment
securities
available-for-sale 41,008 42,183 -2.79%
Cash and cash
equivalents 49,623 63,135 -21.40%
Deposits 572,820 506,534 13.09%
Advances from
Federal Home Loan
Bank 2,780 2,835 -1.94%
Shareholders'
Equity 58,543 53,833 8.75%
Asset Quality
Ratios:
Nonaccrual and 90
days or more past
due loans as a
percent of total
loans, net 0.18% 0.17%
Nonperforming
assets as a
percent of total
assets 0.15% 0.13%
Allowance for loan
losses as a
percent of total
loans receivable 1.03% 1.12%
For the quarters For the year
ending ending
December 31, % December 31, %
------------------ ----------------
2005 2004 Change 2005 2004 Change
-------- ------- ------- ------- ------- --------
OPERATING DATA:
Interest income $ 9,490 $ 6,915 37.24% $32,905 $25,068 31.26%
Interest expense 2,828 1,602 76.53% 9,286 5,555 67.16%
-------- --------------- ------- ----------------
Net interest income 6,662 5,313 25.39% 23,619 19,513 21.04%
Provision for loan
losses 516 523 -1.34% 728 875 -16.80%
-------- --------------- ------- ----------------
Net interest income
after provision
for loan losses 6,146 4,790 28.31% 22,891 18,638 22.82%
Gain on sale of
loans, net 259 492 -47.36% 1,243 2,773 -55.17%
Other income 2,916 2,529 15.30% 11,089 10,125 9.52%
Other expenses 7,798 10,985 -29.01% 24,167 28,573 -15.42%
-------- --------------- ------- ----------------
Income (loss)
before income
taxes 1,523 (3,174) nm 11,056 2,963 273.14%
Income tax expense 438 59 642.37% 3,723 2,534 46.92%
-------- --------------- ------- ----------------
Net income (loss) $ 1,085 $ (3,233) nm $ 7,333 $ 429 1,609.32%
======== =============== ======= ================
Diluted net income
(loss) per share $ 0.15 $ (0.48) nm $ 1.00 $ 0.06 1,566.67%
======== =============== ======= ================
For the quarters For the year
ending ending
December 31, % December 31, %
------------------ ----------------
2005 2004 Change 2005 2004 Change
-------- --------------- ------- ----------------
Reconcilation of GAAP Net Income (Loss) to
Net Income as Adjusted:
Net income (loss) $ 1,085 $ (3,233) $ 7,333 $ 429
Adjustments (net of
income tax effect):
Merger related
charges 355 - 355 -
Accelerated
vesting and
payout of SERP 763 763
ESOP related
charges and
credits - 4,410 (427) 4,410
-------- -------- ------- -------
Total adjustments 1,118 4,410 691 4,410
-------- -------- ------- -------
Net income as
adjusted $ 2,203 $ 1,177 87.17% $ 8,024 $ 4,839 65.82%
======== =============== ======= ================
Reconcilation of GAAP Diluted Net Income (Loss) Per Share to
Diluted Net Income Per Share as Adjusted (1):
Diluted net income
(loss) per share $ 0.15 $ (0.48) $ 1.00 $ 0.06
Adjustments (net of
income tax effect):
Merger related
charges 0.05 - 0.05 -
Accelerated
vesting and
payout of SERP 0.10 0.10
ESOP related
charges and
credits - 0.65 (0.06) 0.65
-------- -------- ------- -------
Total adjustments 0.15 0.65 0.09 0.65
-------- -------- ------- -------
Diluted net income
(loss) per share
as adjusted $ 0.30 $ 0.17 76.47% $ 1.09 $ 0.71 53.52%
======== =============== ======= ================
Note (1): Net income as adjusted for 2005 excludes the impact of
charges incurred due to the pending merger with Pinnacle Financial
Partners and excludes the tax benefit received as a result of the
distribution of cash dividends to participants of the Company's ESOP.
Charges and credits associated with the Company's ESOP in 2004 were
incurred as a result of the Company's decision to deleverage the ESOP
in 2004. Management believes adjusting these matters from operating
earnings is a more meaningful presentation of the Company's results.
KEY FINANCIAL
RATIOS
Performance Ratios:
Return on average
assets 0.68% -2.28% 1.22% 0.08%
Return on average
shareholders'
equity 7.26% -23.19% 12.81% 0.77%
Interest rate
spread (tax
equivalent basis) 4.04% 3.82% 3.89% 3.84%
Net interest margin
(tax equivalent
basis) 4.55% 4.14% 4.31% 4.10%
Non-interest
expense as a
percent of average
total assets 4.86% 7.76% 4.02% 5.40%
Efficiency ratio 79.27% 131.81% 67.22% 88.16%
Net charge-offs to
average
outstanding loans 0.05% 0.09% 0.08% 0.14%
Performance Ratios, as
adjusted (2):
Return on average
assets 1.37% 0.83% 1.33% 0.92%
Return on average
shareholders'
equity 14.73% 8.44% 14.02% 8.72%
Interest rate
spread (tax
equivalent basis) 4.04% 3.82% 3.89% 3.84%
Net interest margin
(tax equivalent
basis) 4.55% 4.14% 4.31% 4.10%
Non-interest
expense as a
percent of average
total assets 3.73% 4.13% 3.72% 4.43%
Efficiency ratio 60.85% 70.09% 62.18% 72.29%
Net charge-offs to
average
outstanding loans 0.05% 0.09% 0.08% 0.14%
Note (2): The above Performance Ratios as adjusted for 2005 excludes
the impact of charges incurred due to the pending merger with
Pinnacle Financial Partners and excludes the tax benefit received as
a result of the distribution of cash dividends to participants of the
Company's ESOP. Charges and credits associated with the Company's
ESOP in 2004 were incurred as a result of the Company's decision to
deleverage the ESOP in 2004. Management believes adjusting these
matters from operating earnings is a more meaningful presentation of
the Company's results.
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