| Cascade Financial Corporation | The Cereghino Group |
| Contacts: | Carol K. Nelson, CEO | | | | corporate investor relations |
| | Lars Johnson, CFO | | | | www.stockvalues.com |
| | 425.339.5500 | | | | 206.762.0993 |
| | www.cascadebank.com | | | | |
NEWS RELEASE
CASCADE FINANCIAL’S EARNINGS INCREASE 8% IN THE THIRD QUARTER AND 21% YTD;
TOTAL LOANS INCREASE 12% AND DEPOSITS GROW 13%
Everett, WA - October 17, 2005 - Cascade Financial Corporation (Nasdaq: CASB), parent company of Cascade Bank, today reported that net income and earnings per share grew 8% in the third quarter, reflecting continued growth in the loan portfolio and higher checking and service fees. In the first nine months of 2005, net income increased 21% and earnings per diluted share grew 12%, reflecting the additional shares issued to acquire Issaquah Bancshares in the second quarter of last year.
Net income was $3.3 million in the third quarter of 2005, or $0.34 per diluted share, compared to $3.1 million, or $0.32 per share the previous year. For the nine-month period ended September 30, net income was $9.6 million, or $0.98 per diluted share in 2005, compared to $8.0 million, or $0.87 per share in the same period last year.
Third Quarter Highlights
| · | Net income and earnings per diluted share increased 8% over the third quarter of 2004. |
| · | Revenues increased 11% from a year ago to $10.9 million. |
| · | Continued success of the High Performance Checking (HPC) program contributed to solid increases in checking and service fees. |
| · | Total loans grew 12% from a year ago, with business loans growing by 45%. |
| · | Credit quality remained strong: nonperforming loans were 0.10% of total loans at quarter-end and net charge offs totaled only $60,000, or 0.01% of total loans. |
| · | Net interest margin improved for the third consecutive quarter to 3.41%. |
“The Western Washington economy continues to improve, and demand for commercial loans remains strong,” stated Carol K. Nelson, President and CEO. “We have sustained our loan and deposit growth momentum while maintaining exceptional credit quality. We will continue to focus on our customers’ needs in order to expand our existing relationships while looking to add new, profitable customers.”
Operating Results
“The continued success of our High Performance Checking program has helped stimulate revenue growth while providing us with a low-cost funding source,” Nelson said. “Revenues were up 11% from the third quarter last year and 18% for the nine-month period, fueled by increased net interest income and sizable increases in checking and services fees.” Revenues were $10.9 million in the third quarter of 2005, compared to $9.8 million a year ago, and $32.1 million for the first nine months of the year, compared to $27.3 million in the same period last year.
Net interest income before the provision for loan losses increased 9% to $9.3 million in the third quarter of 2005, compared to $8.6 million a year earlier, reflecting the ongoing shift to higher-yielding credits and a larger asset base. Other income grew 26% to $1.6 million, from $1.2 million in the third quarter of last year, despite no gains from securities sales, compared to $129,000 a year ago. Checking and service fees continued to climb, totaling $1.1 million compared to $770,000 a year ago. In addition, the gain on sale of loans was $241,000, versus $55,000 in the third quarter last year.
“Three months ago, we anticipated the HPC program would have a net, after-tax expense of roughly $100,000 in the third quarter, with the associated marketing expenses being partially offset by increased fee income,” Nelson said. “In fact, our income exceeded expectations and expenses were less than planned, resulting in a net, after-tax expense of just $47,000. In the fourth quarter, net expenses should be even more modest. When you consider the added benefit of a lower cost of funds, the value and success of HPC is even more apparent.”
“Noninterest expenses declined slightly from the previous quarter, but increased by 13% to $5.7 million in the third quarter of 2005, compared to $5.0 million a year ago,” added Lars Johnson, EVP and CFO. “Compensation expenses actually dropped by $44,000 from the third quarter last year, largely due to lower bonus payments and the absence of recruiter fees. While increased marketing expenses associated with the HPC program offset that improvement, operating expenses were also unusually low a year ago. In the third quarter of 2004 we were able to negotiate a $235,000 reduction in the early termination fee of a data processing contract that we assumed as part of the Issaquah acquisition.”
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Cascade Financial - 3Q05 Profits Up 8%
October 17, 2005
Page Two
For the first nine months of 2005, net interest income grew 15% to $27.3 million, from $23.7 million a year ago. Other income grew 35% to $4.8 million, compared to $3.6 million in the same period last year. Continued growth of checking and service fees contributed to the improvement, with the increased gain on sale of loans offsetting a decreased gain on sale of securities. Other expense increased by 15% to $17.0 million year-to-date, compared to $14.8 million in the first nine months of 2004, largely due to the costs associated with operating the expanded branch network.
Balance Sheet Management
“Fueled by continued strength in the local economy, total loans increased by $18.3 million in the third quarter alone, despite a $12.7 million sale of multifamily loans, following a larger sale of the same type of loans in the second quarter,” Nelson said. “While excluding these loan sales would result in greater loan growth, this sale has helped diversify our risk by lowering the concentration of commercial real estate loans and helped us grow noninterest income. In addition, we have reduced our exposure to higher short-term rates and improved our profitability, as we have replaced these assets with higher-yielding, prime-based loans.”
Third Quarter Change in Total Loans(dollars in thousands)<?xml:namespace prefix = o /> | | | | |
Beginning balance (6/30/05) | | $ 860,695 | | | | |
New loans (net) | | 30,853 | | | | |
Less multifamily loan sale | | (12,600) | | | | |
Ending balance (9/30/05) | | $ 878,948 | | | | |
| | | | | | |
Net increase | | $ 18,253 | | 8.5% annualized growth rate |
Increase excluding loan sale | | $ 30,853 | | 14.3% annualized growth rate |
Total loans have increased by 12% over the past year to $879 million, compared to $785 million at the end of the third quarter last year. Core commercial loans, which include construction, business, and commercial real estate lending, increased by 24% to $686 million, from $552 million a year ago. Construction loans grew by 38% to $152 million. Business loans increased by 45% to $394 million, while commercial real estate loans decreased by 18% to $140 million, primarily due to a reclassification of $35 million in loans from commercial real estate to business at the final integration of the Issaquah Division. Without that reclassification, business loans would have increased by 32% and commercial loans would have grown by 3%. Core commercial loans now account for 78% of total loans, compared to 70% of loans at the end of September 2004.
Consistent with management’s strategy to diversify risk, multifamily loans decreased by 42% to $53.4 million reflecting the two loan sales year-to-date totaling $33.6 million. Consumer and residential loan balances changed little in the past year.
“On the deposit side, HPC has continued to exceed expectations, with associated balances rising by 69% in the third quarter alone, to $16.0 million,” Nelson said. “In addition, increased time deposits helped fund new loans. Core deposit growth would have been higher, but we chose to end a marginally profitable relationship with a local escrow company, and had a payout of $4.5 million from an estate account in the third quarter.”
Total deposits increased 13% to $800 million compared to $710 million at the end of the third quarter last year. Checking balances were up 8% from a year ago, savings and money market accounts increased slightly, and time deposits grew 19% since the end of September 2004.
Stockholders’ equity increased by 8% to $103 million at quarter-end, compared to $95.0 million at the end of the third quarter last year. Book value per share was $10.71 at September 30, 2005, compared to $9.94 a year ago. Due to the creation of intangible assets associated with last year’s acquisition, tangible book value was $7.99 at the end of the quarter, compared to $7.23 a year ago.
Asset Quality
“Our credit quality has remained very good, and in fact improved by all measures over the last three months and the last year,” Nelson said. “Keeping credit expenses low is an essential part of our operating strategy.”
At September 30, 2005, nonperforming loans (NPLs) were $910,000, down from $1.3 million three months earlier and $1.2 million at the end of the third quarter last year. NPLs declined to 0.10% of total loans, versus 0.16% at the end of the previous quarter, 0.15% of loans at the end of September 2004. Nonperforming assets, which include Other Real Estate Owned as well as NPLs, were $1.3 million, representing 0.11% of total assets at quarter end, compared to $1.7 million, or 0.14% at the end of the second quarter of 2005, and $2.0 million, or 0.19% of total assets at the end of the third quarter last year.
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Cascade Financial - 3Q05 Profits Up 8%
October 17, 2005
Page Three
The provision for loan losses was $250,000 in the quarter, up from $150,000 a year ago. Net charge-offs were just $60,000 in the quarter, representing 0.01% of total loans. At the end of September 2005, the allowance for loan losses had grown to $10.1 million, representing 1.15% of total loans and more than 11 times NPLs. “We believe the reserve level is appropriate based upon our analysis of the portfolio and current economic condition,” Nelson said.
Net Interest Margin & Interest Rate Risk
“Our net interest margin improved modestly for the third consecutive quarter, despite aggressive pricing competition on both sides of the balance sheet and the Federal Reserve’s continued campaign to raise short-term rates.” Johnson said. “In the third quarter we extinguished a $10 million advance from the Federal Home Loan Bank at 6.12%, and had another $10 million advance mature last week.” The net interest margin was 3.41% in the third quarter and 3.38% in the first nine months of 2005, compared to 3.48% and 3.45%, respectively, a year ago.
| | 1Q04 | 2Q04 | 3Q04 | 4Q04 | 1Q05 | 2Q05 | 3Q05 |
| Asset yield | 5.88% | 5.78% | 5.89% | 5.90% | 5.97% | 6.17% | 6.33% |
| Liability cost | 2.75% | 2.60% | 2.70% | 2.80% | 2.94% | 3.11% | 3.28% |
| | | | | | | | |
| Spread | 3.13% | 3.18% | 3.19% | 3.10% | 3.03% | 3.06% | 3.05% |
| Margin | 3.45% | 3.46% | 3.48% | 3.41% | 3.34% | 3.38% | 3.41% |
“Our rate risk continues to indicate a modest exposure to changes in short-term interest rates,” Johnson said. “Our goal remains to grow our higher yielding loan balances while improving our liability mix through the growth of transaction accounts. We anticipate that our margin will remain in the 3.30% - 3.50% range in the near term.”
Performance Measures
Return on equity (ROE) was 13.1% in the third quarter and first nine months of 2005, compared to 13.5% and 13.8%, respectively, a year ago. Management also uses return on tangible equity (ROTE), a non-GAAP performance measure that excludes the goodwill created by the merger, and believes that this provides a more consistent comparison with pre-merger performance. Cascade’s ROTE was 17.7% for the third quarter and 17.8% for the year-to-date period, compared to 18.9% and 16.2%, respectively, last year. The efficiency ratio was 52.0% for the third quarter of 2005, compared to 51.1% a year earlier, and improved to 53.0% for the nine-month period, compared to 54.2% last year.
Cash Dividend Declared
On September 28, Cascade announced that its Board of Directors approved a 13% increase in the quarterly cash dividend, to $0.09 per share. This regular dividend is payable on October 26, to shareholders of record on October 12, 2005.
Conference Call
Carol Nelson and Lars Johnson will host a conference call on Tuesday, October 18, at 10:00 am PDT (1:00 pm EDT). Interested investors may listen to the call live or via replay at www.cascadebank.com. Investment professionals are invited to dial (303) 262-2139 to participate in the live call. A telephone replay of the call will be available for three weeks at (303) 590-3000, using passcode 11040278#.
About Cascade Financial
Established in 1916, Cascade Bank, the only operating subsidiary of Cascade Financial Corporation, is a state chartered commercial bank headquartered in Snohomish County, Washington. Cascade Bank operates 19 full service offices, located in Everett, Lynnwood, Marysville, Mukilteo, Smokey Point, Issaquah, Clearview, Woodinville, Lake Stevens, Bellevue, Snohomish and North Bend.
In August 2005, US Banker magazine ranked Cascade #67 out of the Top Publicly Traded Mid-Tier Banks, those with less than $10 billion in assets, based on three-year average return on equity. The same publication has named President and CEO Carol Nelson one of the 25 Most Powerful Women in Banking.
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Cascade Financial - 3Q05 Profits Up 8%
October 17, 2005
Page Four
CONSOLIDATED FINANCIAL HIGHLIGHTS |
INCOME STATEMENT |
| (Dollars in thousands except per share amounts) | |
| | Three Months Ended September 30, | | | | Nine Months Ended September 30, | | |
| | 2005 | 2004 | | Change | | 2005 | 2004 | | Change |
| | (Unaudited) | | | | (Unaudited) | | |
| | | | | | | | | | |
| Interest income | $ 17,391 | $ 14,518 | | 19.8% | | $ 49,657 | $ 40,223 | | 23.5% |
| Interest expense | 8,055 | 5,967 | | 35.0% | | 22,396 | 16,525 | | 35.5% |
| Net interest income | 9,336 | 8,551 | | 9.2% | | 27,261 | 23,698 | | 15.0% |
| Provision for loan losses | 250 | 150 | | 66.7% | | 745 | 525 | | 41.9% |
| Net interest income | | | | | | | | | |
| after provision for loan losses | 9,086 | 8,401 | | 8.2% | | 26,516 | 23,173 | | 14.4% |
| Other income | | | | | | | | | |
| Gain on sale of loans | 241 | 55 | | 338.2% | | 705 | 199 | | 254.3% |
| Gain on sale of securities | - | 129 | | -100.0% | | 13 | 510 | | -97.5% |
| Checking fees | 801 | 569 | | 40.8% | | 2,344 | 1,513 | | 54.9% |
| Service fees | 252 | 201 | | 25.4% | | 672 | 508 | | 32.3% |
| Gain/(loss) on sale of real estate | - | - | | NA | | 33 | 99 | | -66.7% |
| Bank owned life insurance | 194 | 134 | | 44.8% | | 572 | 401 | | 42.6% |
| Other | 76 | 150 | | -49.3% | | 492 | 349 | | 41.0% |
| Total other income | 1,564 | 1,238 | | 26.3% | | 4,831 | 3,579 | | 35.0% |
| | | | | | | | | | |
| Total income | 10,650 | 9,639 | | 10.5% | | 31,347 | 26,752 | | 17.2% |
| | | | | | | | | | |
| Compensation expense | 3,039 | 3,083 | | -1.4% | | 9,217 | 8,390 | | 9.9% |
| Other operating expenses | 2,596 | 1,922 | | 35.1% | | 7,674 | 6,355 | | 20.8% |
| FHLB prepayment fees | 37 | - | | NA | | 110 | 26 | | 323.1% |
| Total other expense | 5,672 | 5,005 | | 13.3% | | 17,001 | 14,771 | | 15.1% |
| | | | | | | | | | |
| Net income before tax | 4,978 | 4,634 | | 7.4% | | 14,346 | 11,981 | | 19.7% |
| | | | | | | | | | |
| Provision for income taxes | 1,634 | 1,531 | | 6.7% | | 4,716 | 4,020 | | 17.3% |
| | | | | | | | | | |
| Net income | $ 3,344 | $ 3,103 | | 7.8% | | $ 9,630 | $ 7,961 | | 21.0% |
| | | | | | | | | | |
EARNINGS PER SHARE INFORMATION | | | | | | | | |
| Earnings per share, basic | $ 0.35 | $ 0.33 | | 7.3% | | $ 1.01 | $ 0.91 | | 10.8% |
| Earnings per share, diluted | $ 0.34 | $ 0.32 | | 7.6% | | $ 0.98 | $ 0.87 | | 11.7% |
| | | | | | | | | | |
| | | | | | | | | | |
| Weighted average number of shares outstanding | | | | | | | | |
| Basic | 9,583,650 | 9,540,663 | | 0.5% | | 9,577,761 | 8,770,054 | | 9.2% |
| Diluted | 9,848,740 | 9,835,923 | | 0.1% | | 9,852,327 | 9,098,496 | | 8.3% |
| | | | | | | | | | |
| | Three Months Ended September 30, | | | | Nine Months Ended September 30, | | |
| | 2005 | 2004 | | | | 2005 | 2004 | | |
PERFORMANCE MEASURES | | | | | | | | | |
| Return on equity | 13.12% | 13.54% | | | | 13.09% | 13.76% | | |
| Return on tangible equity | 17.73% | 18.94% | | | | 17.82% | 16.18% | | |
| Return on assets | 1.15% | 1.19% | | | | 1.13% | 1.11% | | |
| Efficiency ratio | 52.04% | 51.13% | | | | 52.98% | 54.15% | | |
| Net interest margin | 3.41% | 3.48% | | | | 3.38% | 3.45% | | |
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Cascade Financial - 3Q05 Profits Up 8%
October 17, 2005
Page Five
BALANCE SHEET | | September 30, 2005 | | December 31, 2004 | | September 30, 2004 | | Annual Change | |
| (Dollars in thousands except per share amounts) | | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | |
| Cash and due from banks | | $ | 19,303 | | $ | 11,692 | | $ | 15,537 | | 24.2 | % |
| Interest bearing deposits | | | 22,475 | | | 1,337 | | | 1,663 | | 1251.5 | % |
| | | | | | | | | | | | | |
| Securities held to maturity | | | 91,346 | | | 91,339 | | | 95,340 | | -4.2 | % |
| Securities available for sale | | | 123,017 | | | 124,276 | | | 129,996 | | -5.4 | % |
| Total securities | | | 214,363 | | | 215,615 | | | 225,336 | | -4.9 | % |
| Loans | | | | | | | | | | | | |
| Business | | | 393,880 | | | 292,117 | | | 271,988 | | 44.8 | % |
| R/E construction | | | 151,875 | | | 107,431 | | | 109,901 | | 38.2 | % |
| Commercial real estate | | | 140,413 | | | 178,704 | | | 170,450 | | -17.6 | % |
| Multifamily | | | 53,389 | | | 92,372 | | | 92,387 | | -42.2 | % |
| Home equity/consumer | | | 32,752 | | | 30,125 | | | 32,239 | | 1.6 | % |
| Residential | | | 106,639 | | | 105,975 | | | 107,769 | | -1.0 | % |
| Total loans | | | 878,948 | | | 806,724 | | | 784,734 | | 12.0 | % |
| Deferred loan fees | | | (3,077 | ) | | (2,695 | ) | | (2,870 | ) | 7.2 | % |
| Allowance for loan losses | | | (10,081 | ) | | (9,563 | ) | | (9,435 | ) | 6.8 | % |
| Loans, net | | | 865,790 | | | 794,466 | | | 772,429 | | 12.1 | % |
| Premises and equipment | | | 12,656 | | | 12,824 | | | 12,923 | | -2.1 | % |
| Real Estate Owned | | | 386 | | | 868 | | | 891 | | -56.7 | % |
| Bank owned life insurance | | | 17,148 | | | 16,650 | | | 11,506 | | 49.0 | % |
| Other assets | | | 8,886 | | | 9,211 | | | 8,439 | | 5.3 | % |
| Goodwill and intangible assets | | | 26,095 | | | 26,292 | | | 25,892 | | 0.8 | % |
| | | | | | | | | | | | | |
| Total assets | | $ | 1,187,102 | | $ | 1,088,955 | | $ | 1,074,616 | | 10.5 | % |
| | | | | | | | | | | | | |
| Deposits | | | | | | | | | | | | |
| Checking accounts | | $ | 122,135 | | $ | 112,564 | | $ | 113,173 | | 7.9 | % |
| Savings and money market accounts | | | 174,835 | | | 172,584 | | | 173,963 | | 0.5 | % |
| Certificates of deposit | | | 502,999 | | | 436,760 | | | 423,277 | | 18.8 | % |
| Total deposits | | | 799,969 | | | 721,908 | | | 710,413 | | 12.6 | % |
| FHLB advances | | | 241,000 | | | 228,000 | | | 230,000 | | 4.8 | % |
| Securities sold under agreement to repurchase | | | 20,513 | | | 20,902 | | | 20,886 | | -1.8 | % |
| Jr. Sub. Deb. (Trust Preferred Securities) | | | 15,367 | | | 15,454 | | | 10,341 | | 48.6 | % |
| Other liabilities | | | 7,511 | | | 6,441 | | | 7,951 | | -5.5 | % |
| Total liabilities | | | 1,084,360 | | | 992,705 | | | 979,591 | | 10.7 | % |
| | | | | | | | | | | | | |
| Stockholders' equity | | | | | | | | | | | | |
| Common stock and paid in capital | | | 38,042 | | | 37,422 | | | 37,136 | | 2.4 | % |
| Retained earnings | | | 66,420 | | | 59,975 | | | 58,817 | | 12.9 | % |
| Accumulated comprehensive gain/(loss) | | | (1,720 | ) | | (1,147 | ) | | (928 | ) | 85.3 | % |
| Total stockholders' equity | | | 102,742 | | | 96,250 | | | 95,025 | | 8.1 | % |
| | | | | | | | | | | | | |
| Total liabilities and stockholders' equity | | $ | 1,187,102 | | $ | 1,088,955 | | $ | 1,074,616 | | 10.5 | % |
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Cascade Financial - 3Q05 Profits Up 8%
October 17, 2005
Page Six
ADDITIONAL INFORMATION | | September 30, 2005 | | December 31, 2004 | | September 30, 2004 | |
| (Dollars in thousands except per share amounts) | | | | | | | | | | |
| Book value per common share | | $ | 10.71 | | $ | 10.07 | | $ | 9.94 | |
| Common stock outstanding | | | 9,588,987 | | | 9,559,822 | | | 9,560,502 | |
| Capital/asset ratio (including Jr. Subordinate Deb.) | | | 9.95 | % | | 10.26 | % | | 9.80 | % |
| Capital/asset ratio (Tier 1) | | | 8.07 | % | | 8.04 | % | | 7.67 | % |
| Average assets | | $ | 1,162,681 | | $ | 1,083,470 | | $ | 1,044,062 | |
| Average earning assets | | | 1,094,529 | | | 1,020,513 | | | 983,528 | |
| Average equity | | | 101,596 | | | 94,806 | | | 91,668 | |
| Average tangible equity | | | 75,455 | | | 68,896 | | | 65,550 | |
| Cash dividend per share | | $ | 0.08 | | $ | 0.08 | | $ | 0.07 | |
| | | | | | | | | | | |
| Total equity | | $ | 102,742 | | $ | 96,250 | | $ | 95,025 | |
| Less: goodwill and intangibles | | | 26,096 | | | 26,252 | | | 25,892 | |
| Tangible equity | | | 76,646 | | | 69,998 | | | 69,133 | |
| | | | | | | | | | | |
| Tangible book value per share | | $ | 7.99 | | $ | 7.32 | | $ | 7.23 | |
| Tangible capital/asset ratio (excluding Jr. Subordinate Deb.) | | | 6.46 | % | | 6.59 | % | | 6.43 | % |
| | | | | | | | | | | |
ASSET QUALITY | | | September 30, 2005 | | | December 31, 2004 | | | September 30, 2004 | |
| Nonperforming loans (NPLs) | | $ | 910 | | $ | 532 | | $ | 1,151 | |
| Nonperforming loans/total loans | | | 0.10 | % | | 0.07 | % | | 0.15 | % |
| Net loan charge-offs (recoveries)/qtr | | $ | 60 | | $ | 22 | | $ | 186 | |
| Net charge-offs/total loans | | | 0.01 | % | | 0.00 | % | | 0.02 | % |
| Allowance for loan losses/total loans | | | 1.15 | % | | 1.19 | % | | 1.20 | % |
| Allowance for loan losses/nonperforming loans | | | 1108 | % | | 1798 | % | | 820 | % |
| Real estate owned | | $ | 386 | | $ | 868 | | $ | 891 | |
| Total nonperforming assets | | $ | 1,256 | | $ | 1,400 | | $ | 2,042 | |
| Nonperforming assets/total assets | | | 0.11 | % | | 0.13 | % | | 0.19 | % |
This press release contains supplemental financial information determined by methods other than in accordance with Accounting Principles Generally Accepted in the United States of America (“GAAP”). These measures include return on tangible equity, tangible book value per share and tangible capital to asset ratio. Cascade’s management uses these non-GAAP measures in its analysis of the company’s performance. These measures exclude the average and ending balances of acquisition-related goodwill and intangibles in determining average tangible shareholders’ equity. Banking and financial institution regulators also exclude goodwill and intangibles from shareholders’ equity when assessing the capital adequacy of a financial institution. Management believes the presentation of the financial measure excluding the impact of these items provides useful supplemental information that is essential for a proper understanding of the financial results of Cascade Financial Corporation, as they provide a method to assess management’s success in utilizing the company’s tangible capital. This disclosure should not be viewed as a substitute for results determined to be in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.
Safe Harbor Statement
This document contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1955. All such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Those factors include, but are not limited to: continued strong demand for Cascade’s products and services, the ability to attract low-cost deposits and commercial loans, expectations for the net interest margin, maintaining asset quality, management’s ability to minimize interest rate exposure and the impact of interest rate movements, the ability to attract and retain qualified people, and other factors. For a discussion of factors that could cause actual results to differ, please see the Company's publicly available Securities and Exchange Commission filings, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2004.
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Note: Transmitted on Business Wire on October 17, 2005 at 1:00 p.m. PDT.
