Cardinal Financial Reports Earnings.TYSONS CORNER, Va. -- Cardinal cardinal, in zoology cardinal or redbird, common name for a North American songbird of the family Fringillidae (New World finch family). Financial Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CFNL) (the "Company"), parent company of Cardinal Bank (the "Bank"), announced its results of operations for the second quarter and first six months of 2006. HIGHLIGHTS --Net income increased 28% to $5.0 million for the six month period ended June June: see month. 30, 2006, compared to net income of $3.9 million during the same period of 2005. --Diluted earnings per share increased to $0.20 for the six month period, compared to $0.19 during the same period of 2005. --Quarterly net income increased to $2.4 million, compared to net income of $2.3 million in 2005. --Consolidated assets grew to a record $1.585 billion from $1.467 billion at June 30, 2005. On a linked quarter basis, assets grew at an 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. rate of 28% from $1.482 billion at March 31, 2006. --Loans grew 29% and deposits grew 13% compared to a year ago. --Net interest margin improved to 3.10% during the second quarter 2006 from 2.91% in the comparable period of 2005. --Asset quality remains excellent. Non-accrual loans were 0.07% of loans receivable and recoveries on loans previously charged off exceeded current period losses by $23 thousand year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. . RESULTS OF OPERATIONS Net income increased and net interest margin improved. For the year-to-date period ended June 30, 2006, net income was $5.0 million, a 28% increase over 2005 net income of $3.9 million. Earnings per 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. share for the year-to-date period ended June 30, 2006 were $0.20, compared to $0.19 for 2005. For the quarter ended June 30, 2006, the Company reported net income of $2.4 million, compared to $2.3 million for the same quarter of 2005, a 4% increase. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the second quarter of 2006 and 2005 were $0.10 and $0.11, respectively. The Company's net interest margin improved to 3.10% in the second quarter of 2006 from 2.91% in the second quarter of 2005. Return on average assets for the second quarter of 2006 was 0.66% compared to 0.70% in the second quarter of 2005. Return on average assets for the year-to-date periods ended June 30, 2006 and 2005 was 0.71% and 0.64%, respectively. Return on average equity was 6.33% in the second quarter of 2006 and 7.61% for the prior year quarter. The Company's efficiency ratio was 76.41% for the quarter ended June 30, 2006, compared to 72.22% for the same quarter of the prior year. During the quarters ended June 30, 2006 and 2005, provisions for loan losses of $390 thousand and $820 thousand, respectively, were recorded. Quarterly net interest income increased 17%. Net interest income for the quarter ended June 30, 2006 was $10.7 million, a 17% increase from the same quarter of 2005. The Company's non-interest income decreased by $700 thousand, or 11%, in the quarter ended June 30, 2006 from the second quarter of 2005. The slow down in the regional housing market adversely impacted the contribution to non-interest income and 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: net income made by the Company's mortgage banking operation. Gains on the sale of loans declined by $1.5 million, or 37%, from the second quarter of 2005. Management fees, which are the fees earned by the mortgage banking operation for services it provides to other mortgage banking companies that are owned by local home builders, decreased by $310 thousand, or 32%, from the second quarter of 2005. Also included in non-interest income for the quarter ended June 30, 2006 is a $420 thousand gain from the early extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of a Company borrowing. Non-interest income for the quarters ended June 30, 2006 and 2005 represented 34% and 41% of the Company's total revenues, respectively. Partially offsetting the increase in net interest income was a $1.3 million, or 12%, increase in non-interest expense during the quarter ended June 30, 2006 compared to the same quarter of 2005. This increase was due principally to the branch banking expansion and the addition of key market executives for commercial banking and trust operations. Operating Segment Results: Commercial Banking earnings increased 140%. The Company has three operating segments. The Commercial Banking Segment had net income of $2.4 million for the quarter ended June 30, 2006 compared to $1.0 million for the same quarter of 2005, reflecting asset growth, improved net interest margin and operating efficiencies. The Mortgage Banking Segment had net income of $600 thousand for the quarter ended June 30, 2006, compared to net income of $1.8 million in the same quarter of 2005, resulting from the continued slow down in the regional housing market. The Trust and Investment Services Segment had net income of $9 thousand for the second quarter of 2006, compared to a net loss of $16 thousand in the second quarter of 2005. The combined net income of these three operating segments less the non-operating expenses of the parent company (principally interest expenses and overhead costs overhead costs see fixed costs. ) is the Company's consolidated net income of $2.4 million for the quarter. FINANCIAL CONDITION Total assets grew to a record $1.585 billion and loans grew 29% year over year. At June 30, 2006, consolidated assets of the Company were $1.585 billion, an 8% increase from consolidated assets of $1.467 billion at June 30, 2005. Loans receivable were $780 million at June 30, 2006, and increased by $176 million, or 29%, from June 30, 2005. This loan growth was partially funded by a 13% or $133 million increase in deposits, which totaled $1.135 billion at June 30, 2006, compared to $1.002 billion at June 30, 2005. Brokered certificates of deposit decreased by 98% to $982 thousand at June 30, 2006, compared to $47.2 million at June 30, 2005. Loans held for sale, which are originated and acquired by the Company's mortgage banking operation, were $376 million at June 30, 2006 compared to $475 million at June 30, 2005, a 21% decrease. Loans originated and acquired by the Company's mortgage banking operation were $876 million in the second quarter of 2006 compared to $1.17 billion in the second quarter of 2005, reflecting the continued housing market slow down. Non-accrual loans at June 30, 2006 were $577 thousand, or 0.07% of loans receivable, compared to $234 thousand or 0.04% of loans receivable at June 30, 2005. Recoveries on loans previously charged off exceeded the amount of current period losses by $23 thousand year-to-date. The allowance for loan losses was 1.15% of loans at June 30, 2006, compared to 1.20% at June 30, 2005. Capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. remains strong. The Company and Bank remain "well capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. " from a regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. perspective. Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. increased 4% to $149.6 at June 30, 2006, compared to $143.9 million at June 30, 2005. Shareholders' equity was 9.44% and 9.81% of consolidated assets at June 30, 2006 and 2005, respectively. MANAGEMENT COMMENTS Bernard Ber·nard , Claude 1813-1878. French physiologist noted for his study of the digestive and nervous systems. H. Clineburg, Chairman and Chief Executive Officer of the Company, said, "I am satisfied with the results of the second quarter. Our commercial banking operations delivered 29% loan growth and increased deposits by 13% over the past year. We continue to introduce innovative deposit products and services, designed to capture long term banking relationships and deliver more value to our clients. "Our mortgage subsidiary, George George, river, c.345 mi (560 km) long, rising in a lake on the Quebec-Labrador boundary, E Canada. It flows N through Indian Lake (125 sq mi/324 sq km) to Ungava Bay (an arm of Hudson Strait). Mason A mason is a worker who builds in brick or stone, otherwise known as masonry. Mason may also refer to:
To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. our earnings stream while downsizing (1) Converting mainframe and mini-based systems to client/server LANs. (2) To reduce equipment and associated costs by switching to a less-expensive system. (jargon) downsizing in a tough market. We are extremely encouraged by the progress of our Trust and Investment services, providing our clients with a full range of customized investment options. In the third quarter, we will open our Bethesda, Maryland Bethesda is an urbanized, but unincorporated, area in southern Montgomery County, Maryland, just Northwest of Washington, D.C. It takes its name from a church located there, the Bethesda Presbyterian Church, built in 1820 and rebuilt in 1850, which in turn took its name from and second Arlington Arlington, county, United States Arlington, county (1990 pop. 170,936), N Va., across the Potomac River from Washington, D.C. Arlington is a residential and commercial suburb of Washington. , Virginia Virginia, state, United States Virginia, state of the south-central United States. It is bordered by the Atlantic Ocean (E), North Carolina and Tennessee (S), Kentucky and West Virginia (W), and Maryland and the District of Columbia (N and NE). banking offices. This is our first Maryland Maryland (mâr`ələnd), one of the Middle Atlantic states of the United States. It is bounded by Delaware and the Atlantic Ocean (E), the District of Columbia (S), Virginia and West Virginia (S, W), and Pennsylvania (N). facility and extends our retail banking network to 25. "Since our initial recapitalization Recapitalization Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable. Notes: Companies often want to diversify their debt-to-equity ratio to improve liquidity. in May 2002, we have created a premier community banking franchise in Northern Virginia Northern Virginia (NoVA) consists of Arlington, Fairfax, Loudoun, and Prince William counties and the independent cities of Alexandria, Falls Church, Fairfax, Manassas, and Manassas Park. , and now Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. and Maryland. We have invested for our company's future through branch banking expansion, the acquisition of trust and wealth management, and hired the top market executives and officers in the area. We are confident these investments will create shareholder value and produce excellent results. "While these investments will have a short term impact on earnings, I have never been more enthusiastic about our Company's prospects for the future." CAUTION ABOUT 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. This press release contains "forward-looking statements" within the meaning of the federal securities laws. These forward-looking statements contain information related to matters such as the Company's intent, belief or expectation with regard to such matters as financial performance, credit losses, branch expansion and offerings of products and services. Such statements are necessarily based on management's assumptions and estimates and are inherently subject to a variety of risks and uncertainties concerning the Company's operations and business environment, which are difficult to predict and beyond the control of the Company. Such risks and uncertainties could cause actual results to differ materially from those matters expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. in such forward-looking statements. For an explanation of the risks and uncertainties associated with forward-looking statements, please refer to the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December December: see month. 31, 2005 and other reports filed and furnished fur·nish tr.v. fur·nished, fur·nish·ing, fur·nish·es 1. To equip with what is needed, especially to provide furniture for. 2. to the Securities and Exchange Commission. In addition, risks and uncertainties related to the Company's trust operations include the ability of the Company to successfully integrate those operations into the organization. About Cardinal Financial Corporation: Cardinal Financial Corporation, a financial holding company headquartered in Tysons Corner, Virginia Tysons Corner is an unincorporated place in Fairfax County, Virginia, near Washington, D.C. between McLean, Virginia and Vienna, Virginia along the Capital Beltway (I-495). Recognized by the U.S. with assets of $1.585 billion at June 30, 2006, serves the Washington Metropolitan region through its wholly-owned subsidiary, Cardinal Bank, with 23 conveniently located banking offices. Cardinal also operates several other subsidiaries: George Mason Mortgage, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , a residential mortgage lending company based in Fairfax Fairfax, city (1990 pop. 19,622), historic seat of Fairfax co., NE Va., a residential suburb of Washington, D.C.; inc. 1892, as a city 1961 (at which time it became independent and no longer included in a county). There is some light manufacturing. , with seven offices throughout the Washington Metropolitan region; Cardinal Trust and Investment Services, a trust division with more than $5.5 billion in managed or custodial assets; Cardinal Wealth Services, Inc., a full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. company; and Wilson/Bennett Capital Management, Inc., an asset management company. The company's stock is traded on NASDAQ (CFNL). For additional information, please visit our Web site at www.cardinalbank.com.
Cardinal Financial Corporation and Subsidiaries
Summary Statements of Condition
June 30, 2006, December 31, 2005 and June 30, 2005
(Dollars in thousands)
% Change
(Unaudited) (Unaudited) Year
June 30, December June 30, Current Over
2006 31, 2005 2005 Year Year
----------- ----------- ----------- --------- ------
Cash and due from
banks $20,499 $16,514 $19,134 24.1% 7.1%
Federal funds sold 3,379 20,075 36,997 -83.2% -90.9%
Investment
securities
available-for-
sale 236,417 178,955 151,737 32.1% 55.8%
Investment
securities held-
to-maturity 106,480 115,269 127,364 -7.6% -16.4%
----------- ----------- ----------- --------- ------
Total investment
securities 342,897 294,224 279,101 16.5% 22.9%
Other investments 7,201 7,092 7,598 1.5% -5.2%
Loans held for
sale, net 376,475 361,668 475,098 4.1% -20.8%
Loans receivable,
net of fees 779,628 705,644 603,257 10.5% 29.2%
Allowance for loan
losses (8,964) (8,301) (7,210) 8.0% 24.3%
----------- ----------- ----------- --------- ------
Loans receivable,
net 770,664 697,343 596,047 10.5% 29.3%
Premises and
equipment, net 20,558 18,201 17,259 12.9% 19.1%
Goodwill and
intangibles, net 20,548 20,502 20,677 0.2% -0.6%
Other assets 22,367 16,668 15,326 34.2% 45.9%
----------- ----------- ----------- --------- ------
TOTAL ASSETS $1,584,588 $1,452,287 $1,467,237 9.1% 8.0%
=========== =========== =========== ========= ======
Non-interest
bearing deposits $122,185 $114,915 $134,992 6.3% -9.5%
Interest bearing
deposits 1,013,307 954,957 867,494 6.1% 16.8%
----------- ----------- ----------- --------- ------
Total deposits 1,135,492 1,069,872 1,002,486 6.1% 13.3%
Other borrowed
funds 224,725 155,421 163,344 44.6% 37.6%
Mortgage funding
checks 51,008 41,635 93,660 22.5% -45.5%
Escrow liabilities 2,997 11,013 6,860 -72.8% -56.3%
Other liabilities 20,787 26,467 56,985 -21.5% -63.5%
Shareholders'
equity 149,579 147,879 143,902 1.1% 3.9%
----------- ----------- ----------- --------- ------
TOTAL LIABILITIES
& SHAREHOLDERS'
EQUITY $1,584,588 $1,452,287 $1,467,237 9.1% 8.0%
=========== =========== =========== ========= ======
Cardinal Financial Corporation and Subsidiaries
Summary Income Statements
Three and Six Months Ended June 30, 2006 and 2005
(Dollars in thousands, except share and per share data)
(Unaudited)
For the Three Months Ended
June 30,
2006 2005 % Change
------------ ----------- --------
Net interest income $10,711 $9,124 17.4%
Provision for loan losses (390) (820) -52.4%
------------ ----------- --------
Net interest income after provision
for loan losses 10,321 8,304 24.3%
Service charges on deposit accounts 389 330 17.9%
Loan service charges 558 618 -9.7%
Investment fee income 991 291 240.5%
Net gain on sales of loans 2,521 4,035 -37.5%
Net realized gain on investment
securities available-for-sale - 33 -100.0%
Management fee income 664 974 -31.8%
Other non-interest income 458 (6) -7733.3%
------------ ----------- --------
Total non-interest income 5,581 6,275 -11.1%
Net interest income & non-interest
income 15,902 14,579 9.1%
Salaries and benefits 6,099 5,566 9.6%
Occupancy 1,295 1,025 26.3%
Depreciation 789 708 11.4%
Data processing 315 486 -35.2%
Telecommunications 311 277 12.3%
Other operating expense 3,639 3,059 19.0%
------------ ----------- --------
Total non-interest expense 12,448 11,121 11.9%
Net income before income taxes 3,454 3,458 -0.1%
------------ ----------- --------
Provision for income taxes 1,063 1,166 -8.8%
---------------------------------
NET INCOME $2,391 $2,292 4.3%
=================================
Earnings per common share - basic $0.10 $0.11 -9.9%
=================================
Earnings per common share - diluted $0.10 $0.11 -13.0%
=================================
Weighted-average common shares
outstanding - basic 24,415,545 21,096,617 15.7%
=================================
Weighted-average common shares
outstanding - diluted 24,995,818 21,321,508 17.2%
=================================
For the Six Months Ended
June 30,
2006 2005 % Change
------------ ----------- --------
Net interest income $21,106 $16,946 24.5%
Provision for loan losses (640) (1,369) -53.3%
------------ ----------- --------
Net interest income after provision
for loan losses 20,466 15,577 31.4%
Service charges on deposit accounts 758 610 24.3%
Loan service charges 1,181 1,244 -5.1%
Investment fee income 1,672 450 271.6%
Net gain on sales of loans 5,297 7,615 -30.4%
Net realized gain on investment
securities available-for-sale - 33 -100.0%
Management fee income 1,082 1,498 -27.8%
Other non-interest income 795 7 11257.1%
------------ ----------- --------
Total non-interest income 10,785 11,457 -5.9%
Net interest income & non-interest
income 31,251 27,034 15.6%
Salaries and benefits 12,030 10,435 15.3%
Occupancy 2,503 2,071 20.9%
Depreciation 1,538 1,389 10.7%
Data processing 640 994 -35.6%
Telecommunications 621 610 1.8%
Other operating expense 6,548 5,717 14.5%
------------ ----------- --------
Total non-interest expense 23,880 21,216 12.6%
Net income before income taxes 7,371 5,818 26.7%
------------ ----------- --------
Provision for income taxes 2,386 1,915 24.6%
---------------------------------
NET INCOME $4,985 $3,903 27.7%
=================================
Earnings per common share - basic $0.20 $0.20 3.7%
=================================
Earnings per common share - diluted $0.20 $0.19 5.0%
=================================
Weighted-average common shares
outstanding - basic 24,401,460 19,817,872 23.1%
=================================
Weighted-average common shares
outstanding - diluted 24,993,471 20,101,026 24.3%
=================================
Cardinal Financial Corporation and Subsidiaries
Selected Financial Information
(In thousands, except per share data and ratios)
For the Three For the Six
Months Ended Months Ended
June 30, June 30,
2006 2005 2006 2005
---------------------- ----------------------
Income Statements
(unaudited):
Interest income $21,700 $15,926 $41,410 $29,417
Interest expense 10,989 6,802 20,304 12,471
--------------------------------------------- ----------------------
Net interest income 10,711 9,124 21,106 16,946
Provision for loan
losses 390 820 640 1,369
--------------------------------------------- ----------------------
Net interest income
after provision for
loan losses 10,321 8,304 20,466 15,577
Non-interest income 5,581 6,275 10,785 11,457
Non-interest expense 12,448 11,121 23,880 21,216
--------------------------------------------- ----------------------
Net income before
income taxes 3,454 3,458 7,371 5,818
Provision for income
taxes 1,063 1,166 2,386 1,915
--------------------------------------------- ----------------------
Net income $2,391 $2,292 $4,985 $3,903
============================================= ======================
Balance Sheet Data June 30, December
(unaudited): 2006 31, 2005
Total assets $1,584,588 $1,452,287
Loans receivable, net
of fees 779,628 705,644
Allowance for loan
losses (8,964) (8,301)
Loans held for sale 376,475 361,668
Total investment
securities 342,897 294,224
Total deposits 1,135,492 1,069,872
Other borrowed funds 224,725 155,421
Total shareholders'
equity 149,579 147,879
Common shares
outstanding 24,394 24,363
For the Three Months For the Six Months
Ended June 30, Ended June 30,
Selected Average Balances
(unaudited): 2006 2005 2006 2005
Total assets $1,440,541 $1,305,630 $1,403,724 $1,221,734
Loans receivable, net
of fees 749,415 559,725 731,137 532,941
Allowance for loan
losses (8,631) (6,545) (8,529) (6,268)
Loans held for sale 285,071 387,890 259,458 338,730
Total investment
securities 341,428 290,988 323,513 290,424
Earning assets 1,388,593 1,255,397 1,353,366 1,178,660
Total deposits 1,096,605 930,331 1,073,967 889,309
Other borrowed funds 172,868 202,803 159,062 178,328
Total shareholders'
equity 151,119 120,541 150,302 109,091
Weighted Average:
-----------------
Common shares
outstanding - basic 24,416 21,097 24,401 19,818
Common shares
outstanding - diluted 24,996 21,322 24,993 20,101
Per Common Share Data
(unaudited):
Basic net income $0.10 $0.11 $0.20 $0.20
Fully diluted net
income 0.10 0.11 0.20 0.19
Book value 6.13 5.92 6.13 5.92
Tangible book value (1) 5.55 5.12 5.55 5.12
Performance Ratios
(unaudited):
Return on average
assets 0.66% 0.70% 0.71% 0.64%
Return on average
equity 6.33% 7.61% 6.63% 7.16%
Net interest margin (2) 3.10% 2.91% 3.13% 2.88%
Efficiency ratio (3) 76.41% 72.22% 74.88% 74.70%
Non-interest income to
average assets 1.55% 1.92% 1.54% 1.88%
Non-interest expense to
average assets 3.46% 3.41% 3.40% 3.47%
Asset Quality Data
(unaudited):
Annualized net charge-
offs to average loans
receivable, net of
fees 0.00% 0.03%
Non-performing loans to
loans receivable, net
of fees 0.07% 0.04%
Non-performing loans to
total assets 0.04% 0.02%
Allowance for loan
losses to loans
receivable, net of
fees 1.15% 1.20%
Allowance for loan
losses to
nonperforming loans 1553.6% 3081.2%
Capital Ratios
(unaudited):
Tier 1 risk-based
capital 13.87% 14.75%
Total risk-based
capital 14.68% 15.49%
Leverage capital ratio 10.95% 11.23%
(1) Tangible book value is calculated as total shareholders' equity,
adjusted for changes in other comprehensive income, less goodwill
and other intangible assets, divided by common shares outstanding.
(2) Net interest margin is calculated as net interest income divided
by total average earnings assets.
(3) Efficiency ratio is calculated as total non-interest expense
divided by the total of net interest income and non-interest
income.
Cardinal Financial Corporation and Subsidiaries
Average Statements of Condition and Yields on Earning Assets
and Interest-Bearing Liabilities
Three and Six Months Ended June 30, 2006 and 2005
(Dollars in thousands)
For the Three Months Ended
June 30, 2006 June 30, 2005
Average Average Average Average
Balance Yield Balance Yield
----------- ------- ----------- -------
Interest-earning assets:
Loans receivable, net of fees $749,415 6.68% $559,725 5.96%
Loans held for sale 285,071 7.40% 387,890 4.80%
Investment securities -
available-for-sale (1) 232,614 4.59% 160,006 3.83%
Investment securities - held-
to-maturity 108,814 4.05% 130,982 3.83%
Other investments 6,319 5.58% 6,515 4.48%
Federal funds sold 6,360 5.38% 10,279 3.00%
----------- -----------
Total interest-earning
assets 1,388,593 6.25% 1,255,397 5.07%
Non-interest earning assets:
Cash and due from banks 8,079 10,110
Premises and equipment, net 19,971 17,333
Goodwill and intangibles, net 20,647 17,622
Accrued interest and other
assets 11,882 11,713
Allowance for loan losses (8,631) (6,545)
----------- -----------
TOTAL ASSETS $1,440,541 $1,305,630
=========== ===========
Interest-bearing liabilities:
Interest-bearing deposits $981,807 3.73% $818,092 2.70%
Other borrowed funds 172,868 4.30% 202,803 2.52%
----------- -----------
Total interest-bearing
liabilities 1,154,675 3.82% 1,020,895 2.67%
Noninterest-bearing
liabilities:
Noninterest-bearing deposits 114,798 112,239
Other liabilities 19,949 51,955
Shareholders' equity 151,119 120,541
----------- -----------
TOTAL LIABILITIES &
SHAREHOLDERS' EQUITY $1,440,541 $1,305,630
=========== ===========
NET INTEREST MARGIN 3.10% 2.91%
For the Six Months Ended
June 30, 2006 June 30, 2005
Average Average Average Average
Balance Yield Balance Yield
----------- ------- ----------- -------
Interest-earning assets:
Loans receivable, net of fees $731,137 6.57% $532,941 5.86%
Loans held for sale 259,458 7.36% 338,730 4.73%
Investment securities -
available-for-sale (1) 212,472 4.46% 156,974 3.77%
Investment securities - held-
to-maturity 111,041 4.01% 133,450 3.84%
Other investments 6,440 5.51% 5,847 4.35%
Federal funds sold 32,818 4.51% 10,718 2.60%
----------- -----------
Total interest-earning
assets 1,353,366 6.13% 1,178,660 4.99%
Non-interest earning assets:
Cash and due from banks 7,681 6,336
Premises and equipment, net 19,069 17,167
Goodwill and intangibles, net 20,560 16,070
Accrued interest and other
assets 11,577 9,769
Allowance for loan losses (8,529) (6,268)
----------- -----------
TOTAL ASSETS $1,403,724 $1,221,734
=========== ===========
Interest-bearing liabilities:
Interest-bearing deposits $961,395 3.55% $781,225 2.63%
Other borrowed funds 159,062 4.28% 178,328 2.56%
----------- -----------
Total interest-bearing
liabilities 1,120,457 3.65% 959,553 2.62%
Noninterest-bearing
liabilities:
Noninterest-bearing deposits 112,572 108,084
Other liabilities 20,393 45,006
Shareholders' equity 150,302 109,091
----------- -----------
TOTAL LIABILITIES &
SHAREHOLDERS' EQUITY $1,403,724 $1,221,734
=========== ===========
NET INTEREST MARGIN 3.13% 2.88%
(1) Interest income for investment securities available-for- sale is
reported on a fully taxable-equivalent basis at a rate of 35%.
Cardinal Financial Corporation and Subsidiaries
Segment Reporting at and for the Three and Six Months Ended June 30,
2006 and 2005
(Dollars in thousands)
(Unaudited)
At and for the Three Months Ended June 30, 2006:
Trust &
Commercial Mortgage Investment
Banking Banking Services
------------ ------------ ------------
Net interest income $9,827 $1,142 $-
Provision for loan losses 390 - -
Non-interest income 888 3,690 991
Non-interest expense 6,906 3,912 977
Provision for income taxes 1,058 320 5
------------ ------------ ------------
Net income (loss) $2,361 $600 $9
============ ============ ============
Total Assets $1,511,410 $394,233 $6,826
Intersegment
Elimination Other Consolidated
------------ ------------ ------------
Net interest income $- $(258) $10,711
Provision for loan losses - - 390
Non-interest income - 12 5,581
Non-interest expense - 653 12,448
Provision for income taxes - (320) 1,063
------------ ------------ ------------
Net income (loss) $- $(579) $2,391
============ ============ ============
Total Assets $(485,334) $157,453 $1,584,588
At and for the Three Months Ended June 30, 2005:
Trust &
Commercial Mortgage Investment
Banking Banking Services
------------ ------------ ------------
Net interest income $7,697 $1,632 $-
Provision for loan losses 820 - -
Non-interest income 470 5,505 291
Non-interest expense 5,872 4,426 324
Provision for income taxes 453 960 (17)
------------ ------------ ------------
Net income (loss) $1,022 $1,751 $(16)
============ ============ ============
Total Assets $1,310,707 $495,017 $7,228
Intersegment
Elimination Other Consolidated
------------ ------------ ------------
Net interest income $- $(205) $9,124
Provision for loan losses - - 820
Non-interest income - 9 6,275
Non-interest expense - 499 11,121
Provision for income taxes - (230) 1,166
------------ ------------ ------------
Net income (loss) $- $(465) $2,292
============ ============ ============
Total Assets $(511,046) $165,331 $1,467,237
At and for the Six Months Ended June 30, 2006:
Trust &
Commercial Mortgage Investment
Banking Banking Services
------------ ------------ ------------
Net interest income $19,355 $2,279 $-
Provision for loan losses 640 - -
Non-interest income 1,813 7,277 1,672
Non-interest expense 13,105 7,989 1,631
Provision for income taxes 2,414 548 14
------------ ------------ ------------
Net income (loss) $5,009 $1,019 $27
============ ============ ============
Total Assets $1,511,410 $394,233 $6,826
Intersegment
Elimination Other Consolidated
------------ ------------ ------------
Net interest income $- $(528) $21,106
Provision for loan losses - - 640
Non-interest income - 23 10,785
Non-interest expense - 1,155 23,880
Provision for income taxes - (590) 2,386
------------ ------------ ------------
Net income (loss) $- $(1,070) $4,985
============ ============ ============
Total Assets $(485,334) $157,453 $1,584,588
At and for the Six Months Ended June 30, 2005:
Trust &
Commercial Mortgage Investment
Banking Banking Services
------------ ------------ ------------
Net interest income $14,437 $2,943 $-
Provision for loan losses 1,369 - -
Non-interest income 845 10,145 450
Non-interest expense 11,465 8,376 545
Provision for income taxes 831 1,539 (38)
------------ ------------ ------------
Net income (loss) $1,617 $3,173 $(57)
============ ============ ============
Total Assets $1,310,707 $495,017 $7,228
Intersegment
Elimination Other Consolidated
------------ ------------ ------------
Net interest income $- $(434) $16,946
Provision for loan losses - - 1,369
Non-interest income - 17 11,457
Non-interest expense - 830 21,216
Provision for income taxes - (417) 1,915
------------ ------------ ------------
Net income (loss) $- $(830) $3,903
============ ============ ============
Total Assets $(511,046) $165,331 $1,467,237
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