Cardinal Financial Reports Record First Quarter 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 first quarter of 2006. HIGHLIGHTS --Net income increased 61% to $2.6 million compared to the first quarter of 2005. --Commercial banking earnings increased 345% while mortgage banking profit decreased by 70% over the comparable period in 2005. --Basic earnings per share increased 22% to $0.11 compared to the first quarter of 2005. --Consolidated assets grew 16% to $1.48 billion at March 31, 2006, compared to March 31, 2005. --Loans increased 36% while deposits grew 20% year over year. --Net interest margin increased 11% to 3.16%. --Asset quality remained excellent. Non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. were 0.02% of total assets for the first quarter 2006 compared to 0.05% for the first quarter of 2005. --Trust operations were initiated upon completing the acquisition of more than $5 billion in fiduciary fiduciary (fĭd  `shēĕ'rē), in law, a person who is obliged to discharge faithfully a responsibility of trust toward another. assets.
--The Bank opened its first banking office in 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. , D.C., at 1776 K Street, NW, on the corner of 18th and K Streets. --The Bank received 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. approval to open a banking office in Chantilly, Virginia Chantilly is an unincorporated community located in western Fairfax County and southeastern Loudoun County of Northern Virginia. Recognized by the U.S. Census Bureau as a census designated place (CDP), the community population was 41,041 as of the 2000 census. . RESULTS OF OPERATIONS Net income increased 61%; net interest margin and earnings per share also improved. The Company reported net income of $2.6 million for the quarter ended March 31, 2006 compared to net income of $1.6 million for the quarter ended March 31, 2005, a 61% increase. Basic earnings per share was $0.11 for the quarter ended March 31, 2006, compared to $0.09 during the same quarter of 2005, a 22% 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 was $0.10 for the quarter ended March 31, 2006, compared to $0.09 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 during the same quarter of 2005, an 11% increase. The Company's trust operations are included in the 2006 quarterly results since February February: see month. 9, 2006, the date of purchase by the Company. This acquisition did not significantly impact 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: operating results for the quarter ended March 31, 2006. The Company's net interest margin, which equals net interest income as a percentage of average earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin , improved to 3.16% in the first quarter of 2006 from 2.84% in the first quarter of 2005. Return on average assets for the first quarter of 2006 was 0.76%, compared to 0.57% in the first quarter of 2005. Return on shareholder's equity was 6.94% in the first quarter of 2006, compared to 6.61% in the first quarter of the prior year. The Company's efficiency ratio, which equals non-interest expense divided by the total of net interest income and non-interest income, was 73.29% for the quarter ended March 31, 2006, compared to 77.62% for the same quarter of the prior year. The Company's net interest spread, which equals the difference between the interest rates that it earns on all of its interest-earning assets and the rates that it pays on its interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid liabilities, was 2.52% in the first quarter of 2006, compared to 2.34% in the first quarter of 2005. During the quarters ended March 31, 2006 and 2005, provisions for loan losses of $250 thousand and $549 thousand were recorded, respectively. Quarterly net interest income increased 33%; non-interest income improved despite slow down in local mortgage banking activity. Net interest income for the quarter ended March 31, 2006 was $10.4 million, a 33% increase over the comparable quarter of 2005. This increase was primarily the result of the previously mentioned asset growth, increased loan yields and higher net interest margin. Net interest income for the quarters ended March 31, 2006 and 2005 represented 67% and 60% of the Company's total revenues, respectively. The Company's non-interest income increased by $21 thousand in the quarter ended March 31, 2006 from the first quarter of 2005. The slow down in the regional housing market, due in part to rising interest rates, adversely impacted the contribution to non-interest income and consolidated net income from the Company's mortgage banking operation. Gains on sales of loans declined by $805 thousand, or 22%, from the first 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 $106 thousand, or 20% in the first quarter of 2006, from the first quarter of 2005. Also included in non-interest income for the quarter ended March 31, 2006 was a $349 thousand gain from the 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 March 31, 2006 and 2005 represented 33% and 40% of the Company's total revenues, respectively. Partially offsetting the increases in net interest income and non-interest income was a 13% increase in non-interest expense from the first quarter of 2005 to the first quarter of 2006. The increase in non-interest expense was primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the addition of three branch banking offices and the acquisitions of Wilson/Bennett Capital Management and the trust operations since the first quarter of 2005. The Company has recently received regulatory approval to open its 23rd banking office in Chantilly, Virginia. Operating Segment Results: Commercial Banking Segment earnings increased 345%. The Company has three operating segments. The Commercial Banking Segment had net income of $2.6 million for the quarter ended March 31, 2006, compared to $595 thousand for the same quarter of 2005, reflecting asset growth, improved net interest margin and operating efficiencies. The Mortgage Banking Segment had net income of $419 thousand for the quarter ended March 31, 2006, compared to net income of $1.4 million in the same quarter of 2005, as a result of a slow down in the regional housing market. The Trust and Investment Services Segment, which includes trust operations from the date its acquisition by the Company on February 9, 2006, had net income of $18 thousand for the first quarter of 2006, compared to a net loss of $41 thousand in the first 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. FINANCIAL CONDITION Total assets grew 16% and deposits grew 20% year over year. At March 31, 2006, consolidated assets of the Company were $1.48 billion, a 16% increase from consolidated assets of $1.28 billion at March 31, 2005. Loans receivable were $730.0 million at March 31, 2006, and increased by $194.3 million, or 36%, from March 31, 2005. This loan growth was funded by a 20% or $177.1 million increase in deposits, which totaled $1.07 billion at March 31, 2006, compared to $894.9 million at March 31, 2005. Brokered certificates of deposit decreased by 98% to $981 thousand at March 31, 2006, compared to $66.7 million at March 31, 2005. Loans held for sale, which are originated and acquired by the Company's mortgage banking operation, were $300.2 million at March 31, 2006 compared to $364.1 million at March 31, 2005, an 18% decrease. Loans originated and acquired by the Company's mortgage banking operation were $674 million for the first quarter of 2006 compared to $835 million in the first quarter of 2005, reflecting the slow down in the regional housing market. Non-accrual loans at March 31, 2006 were $278 thousand, or 0.04% of loans receivable, compared to $604 thousand or 0.11% of loans receivable at March 31, 2005. 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. net charge-offs during the first quarter of 2006 were 0.02% of loans receivable. The allowance for loan loses was 1.17% of loans at March 31, 2006, compared to 1.20% at March 31, 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. Both the Company and the 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 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 56% to $149.8 million at March 31, 2006, compared to $95.7 million at the same date in 2005. Shareholders' equity was 10.1% and 7.5% of consolidated assets at March 31, 2006 and 2005, respectively. The increase in shareholders' equity from March 31, 2005 is primarily the result of a secondary common stock offering in May 2005, which raised $39.8 million, as well as earnings retained in the Company. ANNUAL SHAREHOLDERS MEETING The Company's Annual Shareholders Meeting will be held on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , April 21, 2006, at the Hyatt Hyatt is an international brand of hotels within the Global Hyatt Corporation that operates numerous properties. Hyatt is a part of the Marmon Group which is owned by Chicago's Pritzker Family. Mark S. Hoplamazian is the current President and CEO of Global Hyatt Corporation. Fair Lakes, 12777 Fair Lakes Circle, Fairfax, Virginia Fairfax is an independent city forming an enclave within the confines of Fairfax County, in the Commonwealth of Virginia. Although politically independent of the surrounding county, the City of Fairfax is nevertheless its county seatGR6. . The meeting will begin at 10:00 a.m. (ET). MANAGEMENT COMMENTS Bernard Ber·nard , Claude 1813-1878. French physiologist noted for his study of the digestive and nervous systems. H. Clineburg, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , said, "I am pleased to report that we achieved our 15th consecutive profitable quarter and increased our first quarter earnings 61% over last year's results. More importantly, the Commercial Banking Segment continued to demonstrate strong earnings momentum. We opened Trust and Investment Services, completing the acquisition of more than $5 billion in fiduciary assets. With the addition of trust services, we have become a competitive force in the region's wealth management market. We continued to expand our branch network with the addition of our first office in Washington, D.C., at the premier location of 1776 K Street NW, and we received regulatory approval to open an office in the coveted cov·et v. cov·et·ed, cov·et·ing, cov·ets v.tr. 1. To feel blameworthy desire for (that which is another's). See Synonyms at envy. 2. To wish for longingly. See Synonyms at desire. Chantilly Chan·til·ly A village of northern France north of Paris. It was long noted for its fine porcelain and delicate lace. Population: 10,065. market. This will be our 12th location 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. and our 23rd banking office. We will consider further expansion as opportunities arise in growth areas." 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 and branch expansion. 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 statement. 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. These risks include, but are not limited to, such factors as our mortgage banking revenue is sensitive to changes in economic conditions, goodwill and other intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. may become impaired See assistive technology. and the Company may be adversely affected by economic conditions in its market area. 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 is 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. . On March 31, 2006, Cardinal Financial Corporation had assets of $1.48 billion. Through its wholly-owned subsidiary, Cardinal Bank, the Company serves the Washington Metropolitan region with 22 conveniently located banking offices in Alexandria Alexandria, city, Egypt Alexandria, Arabic Al Iskandariyah, city (1996 pop. 3,328,196), N Egypt, on the Mediterranean Sea. It is at the western extremity of the Nile River delta, situated on a narrow isthmus between the sea and Lake Mareotis (Maryut). , Annandale An·nan·dale A city of northeast Virginia, a suburb of Alexandria and Washington, D.C. Population: 57,600. , 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. , Clifton Clifton, industrial city (1990 pop. 71,742), Passaic co., NE N.J., on the Passaic River; settled 1685, set off from Passaic and inc. 1917. It has steel, textile equipment, chemical, plastics, clothing, and electronics industries. , Fairfax City, Fredericksburg Fredericksburg. 1 Town (1990 pop. 6,934), Gillespie co., S central Texas, in the Texas Hill Country near the Pedernales River; inc. 1928. Located in an agricultural (cattle, peaches, wine, lavender) and quarrying (granite, sand, gravel) region, the city , Herndon Herndon, town (1990 pop. 16,139), Fairfax co., N Va., inc. 1874, rechartered 1938. A suburb of Washington, D.C., Herndon has a mix of light and high-tech industries. , Leesburg Leesburg, city (1990 pop. 14,903), Lake co., N central Fla., in a hill and lake region; inc. 1875. Leesburg, named for Evander Lee, its founder, is a processing and shipping center in a citrus-fruit and truck-farm area. , Manassas Manassas (mənăs`əs), town (1990 pop. 27,957), seat of Prince William co., N Va., in a farm area; inc. 1873, rechartered 1938. Manassas has become a growing residential town with retail shopping centers; its development has been spurred as , McLean McLean, city (1990 pop. 38,168), Fairfax co., N Va., a suburb of Washington, D.C. Manufacturing includes foods, satellite components, and computer and telecommunications equipment. , Purcellville, Reston Reston, uninc. city (1990 pop. 48,556), Fairfax co., N Va., a planned community established in 1961. A suburb of Washington, D.C., Reston is organized in a series of residential villages and commercial areas. , Stafford Stafford, city (1991 pop. 60,915) and district, Staffordshire, W central England, on the Sow River, above its junction with the Trent. Stafford's chief industry is the manufacture of electrical goods; other products are concrete, shoes and shoe-repairing machinery, , Sterling, Sterling Park, K Street in Washington, D.C. and two locations each in Fairfax, Tysons Corner and Woodbridge Wood·bridge A city of northeast New Jersey south-southwest of Elizabeth. Settled in 1665, it is an industrial center. Population: 97,203. . Cardinal also operates three other subsidiaries: a residential mortgage lending company, 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:
LLC - Logical Link Control , based in Fairfax, with nine offices throughout the Washington Metropolitan region; a full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. investment services company, Cardinal Wealth Services, Inc., and an asset management company, Wilson/Bennett Capital Management, Inc. The company's stock is traded on the NASDAQ (CFNL). For additional information, please visit our Web site at www.cardinalbank.com.
Cardinal Financial Corporation and Subsidiaries
Summary Statements of Condition
March 31, 2006, December 31, 2005 and March 31, 2005
(Dollars in thousands)
(Unaudited) (Unaudited) % Change
Year
March 31, Dec. 31, March 31, Current Over
2006 2005 2005 Year Year
----------- ----------- ----------- --------- ------
Cash and due from
banks $29,757 $16,514 $15,979 80.2% 86.2%
Federal funds
sold 32,760 20,075 17,650 63.2% 85.6%
Investment
securities
available-for-
sale 220,813 178,955 163,377 23.4% 35.2%
Investment
securities held-
to-maturity 110,541 115,269 133,435 -4.1% -17.2%
----------- ----------- ----------- --------- ------
Total investment
securities 331,354 294,224 296,812 12.6% 11.6%
Other investments 7,783 7,092 7,621 9.7% 2.1%
Loans held for
sale, net 300,194 361,668 364,126 -17.0% -17.6%
Loans receivable,
net of fees 730,003 705,644 535,704 3.5% 36.3%
Allowance for
loan losses (8,520) (8,301) (6,432) 2.6% 32.5%
----------- ----------- ----------- --------- ------
Loans receivable,
net 721,483 697,343 529,272 3.5% 36.3%
Premises and
equipment, net 18,046 18,201 17,383 -0.9% 3.8%
Goodwill and
intangibles, net 20,696 20,502 14,645 0.9% 41.3%
Other assets 19,646 16,668 14,868 17.9% 32.1%
----------- ----------- ----------- --------- ------
TOTAL ASSETS $1,481,719 $1,452,287 $1,278,356 2.0% 15.9%
=========== =========== =========== ========= ======
Non-interest
bearing deposits $114,618 $114,915 $110,312 -0.3% 3.9%
Interest bearing
deposits 957,339 954,957 784,559 0.2% 22.0%
----------- ----------- ----------- --------- ------
Total deposits 1,071,957 1,069,872 894,871 0.2% 19.8%
Other borrowed
funds 173,543 155,421 188,715 11.7% -8.0%
Mortgage funding
checks 52,077 41,635 74,263 25.1% -29.9%
Escrow
liabilities 6,297 11,013 8,549 -42.8% -26.3%
Other liabilities 28,016 26,467 16,228 5.9% 72.6%
Shareholders'
equity 149,829 147,879 95,730 1.3% 56.5%
----------- ----------- ----------- --------- ------
TOTAL LIABILITIES
& SHAREHOLDERS'
EQUITY $1,481,719 $1,452,287 $1,278,356 2.0% 15.9%
=========== =========== =========== ========= ======
Cardinal Financial Corporation and Subsidiaries
Summary Income Statements
Three Months Ended March 31, 2006 and 2005
(Dollars in thousands, except share and per share data)
For the Three
Months Ended
March 31,
2006 2005 % Change
----------- ----------- ---------
(Unaudited)
Net interest income $10,395 $7,822 32.9%
Provision for loan losses (250) (549) -54.5%
----------- ----------- ---------
Net interest income after provision
for loan losses 10,145 7,273 39.5%
Service charges on deposit accounts 369 280 31.8%
Loan service charges 623 626 -0.5%
Investment fee income 681 159 328.3%
Net gain on sales of loans 2,776 3,581 -22.5%
Management fee income 418 524 -20.2%
Other non-interest income 337 13 2492.3%
----------- ----------- ---------
Total non-interest income 5,204 5,183 0.4%
Net interest income and non-interest
income 15,349 12,456 23.2%
Salaries and benefits 5,931 4,870 21.8%
Occupancy 1,208 1,046 15.5%
Depreciation 749 680 10.1%
Data processing 325 508 -36.0%
Telecommunications 310 333 -6.9%
Other operating expense 2,909 2,658 9.4%
----------- ----------- ---------
Total non-interest expense 11,432 10,095 13.2%
Net income before income taxes 3,917 2,361 65.9%
----------- ----------- ---------
Provision for income taxes 1,323 749 76.6%
----------- ----------- ---------
NET INCOME $2,594 $1,612 60.9%
=================================
Earnings per common share - basic $0.11 $0.09 22.2%
=================================
Earnings per common share - diluted $0.10 $0.09 11.1%
=================================
Weighted-average common shares
outstanding - basic 24,387,203 18,524,847 31.6%
=================================
Weighted-average common shares
outstanding - diluted 25,026,125 18,830,265 32.9%
=================================
Cardinal Financial Corporation and Subsidiaries
Selected Financial Information
(In thousands, except per share data and ratios)
For the Three
Months Ended
March 31,
2006 2005
------------------------
Income Statements (unaudited):
Interest income $19,710 $13,491
Interest expense 9,315 5,669
--------------------------------------------------------------------
Net interest income 10,395 7,822
Provision for loan losses 250 549
--------------------------------------------------------------------
Net interest income after provision for loan
losses 10,145 7,273
Non-interest income 5,204 5,183
Non-interest expense 11,432 10,095
--------------------------------------------------------------------
Net income before income taxes 3,917 2,361
Provision for income taxes 1,323 749
--------------------------------------------------------------------
Net income $2,594 $1,612
====================================================================
Balance Sheet Data (unaudited): March 31, March 31,
2006 2005
Total assets $1,481,719 $1,278,356
Loans receivable, net of fees 730,003 535,704
Allowance for loan losses (8,520) (6,432)
Loans held for sale 300,194 364,126
Total investment securities 331,354 296,812
Total deposits 1,071,957 894,871
Other borrowed funds 173,543 188,715
Total shareholders' equity 149,829 95,730
Common shares outstanding 24,367 18,531
Selected Average Balances (unaudited): March 31, March 31,
2006 2005
Total assets $1,366,498 $1,136,906
Loans receivable, net of fees 712,656 505,860
Allowance for loan losses (8,425) (5,988)
Loans held for sale 233,560 289,024
Total investment securities 305,400 289,852
Interest earning assets 1,317,748 1,101,070
Total deposits 1,051,078 847,831
Other borrowed funds 145,102 153,580
Total shareholders' equity 149,476 97,515
Weighted Average:
-----------------------------------------
Common shares outstanding - basic 24,387 18,525
Common shares outstanding - diluted 25,026 18,830
Per Common Share Data (unaudited):
Basic net income $0.11 $0.09
Fully diluted net income 0.10 0.09
Book value 6.15 5.17
Tangible book value 5.31 4.38
Performance Ratios (unaudited):
Return on average assets 0.76% 0.57%
Return on average equity 6.94% 6.61%
Net interest margin (1) 3.16% 2.84%
Efficiency ratio (2) 73.29% 77.62%
Non-interest income to average assets 1.52% 1.82%
Non-interest expense to average assets 3.35% 3.55%
Asset Quality Data (unaudited):
Annualized net charge-offs to average loans
receivable, net of fees 0.02% 0.00%
Nonaccrual loans to loans receivable, net of
fees 0.04% 0.11%
Nonaccrual loans to total assets 0.02% 0.05%
Allowance for loan losses to loans
receivable, net of fees 1.17% 1.20%
Allowance for loan losses to nonperforming
loans 3064.7% 1064.9%
Capital Ratios (unaudited):
Tier 1 risk-based capital 15.02% 12.07%
Total risk-based capital 15.86% 12.82%
Leverage capital ratio 11.36% 9.23%
(1) Net interest margin is calculated as net interest income divided
by total average earning assets.
(2) 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 Months Ended March 31, 2006 and 2005
(Dollars in thousands)
(Unaudited)
For the Three Months Ended
March 31, 2006 March 31, 2005
Average Average Average Average
Balance Yield Balance Yield
----------- -------- ----------- --------
Interest-earning assets:
Loans receivable, net of fees $712,656 6.46% $505,860 5.76%
Loans held for sale 233,560 6.96% 289,024 4.65%
Investment securities -
available-for-sale (1) 192,106 4.31% 153,907 3.72%
Investment securities - held-
to-maturity 113,294 3.97% 135,945 3.85%
Other investments 6,563 5.43% 5,172 4.19%
Federal funds sold 59,569 4.42% 11,162 2.20%
----------- -------- ----------- --------
Total interest-earning
assets 1,317,748 5.92% 1,101,070 4.90%
Non-interest earning assets:
Cash and due from banks 7,278 2,519
Premises and equipment, net 18,157 17,000
Goodwill and intangibles, net 20,471 14,501
Accrued interest and other
assets 11,269 7,804
Allowance for loan losses (8,425) (5,988)
----------- -----------
TOTAL ASSETS $1,366,498 $1,136,906
=========== ===========
Interest-bearing liabilities:
Interest-bearing deposits $940,757 3.36% $743,948 2.55%
Other borrowed funds 145,102 3.66% 153,580 2.59%
----------- -------- ----------- --------
Total interest-bearing
liabilities 1,085,859 3.40% 897,528 2.56%
Noninterest-bearing
liabilities:
Noninterest-bearing deposits 110,321 103,883
Other liabilities 20,842 37,980
Shareholders' equity 149,476 97,515
----------- -----------
TOTAL LIABILITIES &
SHAREHOLDERS' EQUITY $1,366,498 $1,136,906
=========== ===========
NET INTEREST MARGIN 3.16% 2.84%
(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 Months Ended
March 31, 2006 and 2005
(Dollars in thousands)
(Unaudited)
At and for the Three Months Ended March 31, 2006:
Trust &
Commercial Mortgage Investment
Banking Banking Services
-------------- ------------- --------------
Net interest income $9,528 $1,137 $-
Provision for loan losses 250 - -
Non-interest income 925 3,587 681
Non-interest expense 6,199 4,077 654
Provision for income taxes 1,356 228 9
-------------- ------------- --------------
Net income (loss) $2,648 $419 $18
============== ============= ==============
Total Assets $1,408,884 $318,583 $6,922
Intersegment
Elimination Other Consolidated
-------------- ------------- --------------
Net interest income $- $(270) $10,395
Provision for loan losses - - 250
Non-interest income - 11 5,204
Non-interest expense - 502 11,432
Provision for income taxes - (270) 1,323
-------------- ------------- --------------
Net income (loss) $- $(491) $2,594
============== ============= ==============
Total Assets $(412,602) $159,932 $1,481,719
At and for the Three Months Ended March 31, 2005:
Trust &
Commercial Mortgage Investment
Banking Banking Services
-------------- ------------- --------------
Net interest income $6,742 $1,311 $-
Provision for loan losses 549 - -
Non-interest income 374 4,642 159
Non-interest expense 5,593 3,952 221
Provision for income taxes 379 579 (21)
-------------- ------------- --------------
Net income (loss) $595 $1,422 $(41)
============== ============= ==============
Total Assets $1,192,690 $379,403 $691
Intersegment
Elimination Other Consolidated
-------------- ------------- --------------
Net interest income $- $(231) $7,822
Provision for loan losses - - 549
Non-interest income - 8 5,183
Non-interest expense - 329 10,095
Provision for income taxes - (188) 749
-------------- ------------- --------------
Net income (loss) $- $(364) $1,612
============== ============= ==============
Total Assets $(411,226) $116,798 $1,278,356
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