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Cavalry Banking

Murfreesboro, TN · Cert 29644

FDIC

Q4 2005

$635.0MAssets
$512.7MLoans
$573.0MDeposits
$53.4MEquity
Loan mix
46%RE $118.4M54%C&I $139.6M0%Consumer $0.1MQ4 2004Q4 2005
Deposit mix
81%Interest-bearing $461.3M19%Noninterest $111.7MQ4 2004Q4 2005

NIM

4.82%Q4 ’035.23%Q4 ’046.19%Q4 ’05+8%+8%

Non-interest income vs. expense

5.05%Q4 ’038.10%Q4 ’045.03%Q4 ’05+124%-48%

Executive Summary

  • Earnings: ROA of 0.71%, up 303 bps year over year; NIM at 4.40%.
  • Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 0.18%.
  • Funding: loans stand at 89.48% of deposits as of Q4 2005.

Financial Results

Return on Assets (quarter, annualized)

0.71%+303 bps YoY

Net Interest Margin (quarter, annualized)

4.40%+34 bps YoY

Efficiency Ratio (quarter, annualized)

79.09%-5,163 bps YoY

Tier 1 Leverage Ratio

n/a

Discrete quarter, annualized.

MetricQ4 2004Q1 2005Q2 2005Q3 2005Q4 2005YoY ΔTrend
Earnings
Return on Assets-2.32%1.31%1.29%1.41%0.71%+303 bps
Return on Equity-26.31%15.56%15.28%16.86%8.44%+3,474 bps
Net Interest Margin4.06%3.96%4.04%4.25%4.40%+34 bps
Efficiency Ratio130.71%64.23%64.73%60.47%79.09%-5,163 bps
Non-Interest Burden5.97%1.82%1.88%1.79%3.08%-289 bps
Growth
Asset Growth (YoY)10.75%14.69%16.80%15.04%13.19%+245 bps
Loan Growth (YoY)22.51%12.24%8.31%14.76%17.08%-543 bps
Deposit Growth (YoY)11.50%16.49%17.95%15.93%13.07%+158 bps
Asset Quality
Nonperforming Loans / Loans0.00%0.00%0.00%0.00%0.00%0 bps
Net Charge-Offs / Loans0.35%0.02%0.05%0.04%0.18%-18 bps
Allowance / Loans1.11%1.14%1.08%1.03%1.02%-9 bps
Allowance Coverage of NPLsn/an/an/an/an/an/an/a
Capital
Tier 1 Leverage Ration/an/an/an/an/an/an/a
Total Risk-Based Capital11.28%11.44%11.14%10.97%10.71%-57 bps
Equity / Assets8.34%8.47%8.36%8.34%8.40%+6 bps
Liquidity & Funding
Loans / Deposits86.42%84.08%83.05%85.53%89.48%+306 bps
Liquid Assets / Assets5.83%9.98%11.47%8.01%4.30%-152 bps
CRE / Total Capitaln/an/an/an/an/an/an/a