Exhibit 99
Cardinal Bankshares Corporation
101 Jacksonville Circle
Floyd, Virginia 24091
Contact: | Leon Moore | Telephone: (540) -745-4191 | ||||
Chairman of the Board and CEO | FAX: (540-) 745-4133 |
February 8, 2005 | Traded: OTC Bulletin Board | Symbol: CDBK | ||
For Immediate Release |
Cardinal Bankshares Corporation Announces Strong Earnings for 2004
FLOYD, VA – Cardinal Bankshares Corporation is pleased to report an earnings increase over 2003. “ With the added cost of federal regulations, competition, interest rate uncertainty, branch expansion and automation upgrades, it is particularly gratifying to report strong earnings”, stated Leon Moore, chairman and chief executive officer. Moore also stated that 2004 was the second best year for net income in the Company’s history.
Net income amounted to $2,242,000, an increase of $217,000 over the 2003 income of $2,025,000. Basic earnings per share amounted to $1.46, an increase of $.14 over the $1.32 per share in 2003.
Net income for the 4th quarter of 2004 increased by 4% over 2003, ending at $527,375, compared to $507,018 in the 4th quarter 2003.
Total assets ended the year at $190,633,000. Net loans increased by $4 million and ended the year at $123,042,000.
Moore added, “Our continued strong performance allows Cardinal to add value to our shareholders, to the communities we serve and to our staff.”
Cardinal provides a wide range of commercial banking services to individuals and small to medium-sized businesses through its main office located in Floyd, Virginia and its branch locations in Christiansburg, Hillsville, Roanoke, Salem and Willis, Virginia.
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Cardinal Bankshares Corporation and Subsidiaries
Consolidated Balance Sheets
December 31, (In thousands, Unaudited) | 2004 | 2003 | ||||||
Assets | ||||||||
Cash and due from banks | $ | 4,162 | $ | 3,419 | ||||
Interest-bearing deposits in banks | 3,602 | 4,316 | ||||||
Federal funds sold | 7,175 | 9,125 | ||||||
Investment securities available for sale, at fair value | 20,942 | 21,771 | ||||||
Investment securities held to maturity | 20,001 | 18,560 | ||||||
Restricted equity securities | 603 | 598 | ||||||
Total loans | 124,673 | 120,730 | ||||||
Allowance for loan losses | (1,631 | ) | (1,697 | ) | ||||
Net loans | 123,042 | 119,033 | ||||||
Bank premises and equipment, net | 4,205 | 2,437 | ||||||
Accrued interest receivable | 933 | 883 | ||||||
Foreclosed properties | — | 385 | ||||||
Bank owned life insurance | 4,483 | 4,327 | ||||||
Other assets | 1,485 | 1,558 | ||||||
Total assets | $ | 190,633 | $ | 186,412 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Liabilities | ||||||||
Noninterest-bearing deposits | $ | 27,211 | $ | 22,959 | ||||
Interest-bearing deposits | 134,044 | 136,256 | ||||||
Total deposits | 161,255 | 159,215 | ||||||
Securities sold under agreements to repurchase | 2,493 | 1,826 | ||||||
Accrued interest payable | 110 | 123 | ||||||
Other liabilities | 925 | 794 | ||||||
Total liabilities | 164,783 | 161,958 | ||||||
Commitments and contingencies | — | — | ||||||
Stockholders’ equity | ||||||||
Common stock, $10 par value; 5,000,000 shares authorized; 1,535,733 shares issued and outstanding | 15,357 | 15,357 | ||||||
Additional paid-in capital | 2,925 | 2,925 | ||||||
Retained earnings | 7,444 | 5,970 | ||||||
Accumulated other comprehensive income | 124 | 202 | ||||||
Total stockholders’ equity | 25,850 | 24,454 | ||||||
Total liabilities and stockholders’ equity | $ | 190,633 | $ | 186,412 | ||||
Cardinal Bankshares Corporation and Subsidiaries
Consolidated Statements of Income
Years ended December 31, (In thousands, except share and per share data, Unaudited) | 2004 | 2003 | ||||
Interest income | ||||||
Loans and fees on loans | $ | 7,971 | $ | 7,804 | ||
Federal funds sold and securities purchased under agreements to resell | 97 | 119 | ||||
Investment securities: | ||||||
Taxable | 902 | 961 | ||||
Exempt from federal income tax | 924 | 921 | ||||
Deposits with banks | 26 | 69 | ||||
Total interest income | 9,920 | 9,874 | ||||
Interest expense | ||||||
Deposits | 3,102 | 3,781 | ||||
Borrowings | 55 | 28 | ||||
Total interest expense | 3,157 | 3,809 | ||||
Net interest income | 6,763 | 6,065 | ||||
Provision for loan losses | 55 | 30 | ||||
Net interest income after provision for loan losses | 6,708 | 6,035 | ||||
Noninterest income | ||||||
Service charges on deposit accounts | 267 | 308 | ||||
Other service charges and fees | 87 | 86 | ||||
Net realized gains on sales of securities | 4 | — | ||||
Income on bank owned life insurance | 156 | 178 | ||||
Other income | 256 | 302 | ||||
Total noninterest income | 770 | 874 | ||||
Noninterest expense | ||||||
Salaries and employee benefits | 2,719 | 2,479 | ||||
Occupancy and equipment | 618 | 553 | ||||
Foreclosed assets, net | 12 | 36 | ||||
Other operating expense | 1,260 | 1,254 | ||||
Total noninterest expense | 4,609 | 4,322 | ||||
Income before income taxes | 2,869 | 2,587 | ||||
Income tax expense | 627 | 562 | ||||
Net income | $ | 2,242 | $ | 2,025 | ||
Basic earnings per share | $ | 1.46 | $ | 1.32 | ||
Diluted earnings per share | $ | 1.46 | $ | 1.32 | ||
Weighted average basic shares outstanding | 1,535,733 | 1,535,733 | ||||
Weighted average diluted shares outstanding | 1,535,733 | 1,535,733 | ||||