Cardinal Bankshares Corporation
101 Jacksonville Circle
Floyd, Virginia 24091
Contact: | Leon Moore | Telephone: (540) -745-4191 | ||
Chairman of the Board, President and CEO | FAX: (540) -745-4133 | |||
Stephanie Kent | ||||
Senior Vice President and Principal Financial Officer |
November 16, 2005 | Traded: OTC Bulletin Board Symbol: CDBK |
For Immediate Release
Cardinal Bankshares Corporation Announces Results of Operations for the First Nine Months of 2005
FLOYD, VA – Cardinal Bankshares Corporation reported good growth for the first nine months of 2005 as compared to the same period of 2004. Total assets at September 30, 2005 were $193,327,000. Net loans increased by $8 million from December 31, 2004 and ended at $131,156,000 as of September 30, 2005. Deposit growth since December 31, 2004 amounted to $3,554,000.
“The bank has been able to increase its net interest income, yet the continued increasing costs of federal regulations, competition, branch expansion and automation upgrades lower our overall net income.”, stated Leon Moore, chairman and chief executive officer.
Net income for the first nine months of 2005 amounted to $1,605,000, a slight decrease of $110,000 from the income of $1,715,000 for the same period in 2004. Basic earnings per share amounted to $1.05 per share.
Noninterest expense increased approximately $409,000 the first nine months of 2005 compared to the first nine months of 2004. The largest portion of that amount was related to bringing our new branches in Roanoke and Salem into operation. The majority of those expenses were related to buildings, furniture and fixtures, personnel cost, and regulatory compliance.
On November 9, 2005 the Board of Directors of Cardinal Bankshares Corporation approved a cash dividend of 28¢ per share for the second half of 2005. Mr. Moore stated, “This represents an annual cash dividend of 53¢ for the year 2005. The increase amounts to a 6% increase over the 2004 cash dividend of 50¢ per share. The increase marks the 14th consecutive year of cash dividend increases.” The dividend will be payable on December 30th to shareholders of record on December 16, 2005.
Moore added, “We continue to look for new expansion opportunities and products to serve our customers. 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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This press release may contain “forward-looking statements,” within the meaning of federal securities laws, that involve risks and uncertainties. Statements herein are based on certain assumptions and analyses by the Company and other factors it believes are appropriate in the circumstances. However, the Company’s expectations are subject to a number of risks and uncertainties and other factors that could cause actual results, events and developments to differ materially from those contemplated by any forward-looking statements herein. Consequently, all forward-looking statements made herein are qualified by these cautionary statements and the cautionary language in the Company’s most recent Form 10-KSB report and other documents filed with the Securities and Exchange Commission.
Cardinal Bankshares Corporation and Subsidiary
Consolidated Balance Sheets
(Unaudited) | (Audited) | |||||||
(In thousands, except share data) | September 30, 2005 | December 31, 2004 | ||||||
Assets | ||||||||
Cash and due from banks | $ | 4,085 | $ | 4,162 | ||||
Interest-bearing deposits | 8,610 | 3,602 | ||||||
Federal funds sold | 1,725 | 7,175 | ||||||
Investment securities available for sale, at fair value | 16,733 | 20,942 | ||||||
Investment securities held to maturity (fair value September 30, 2005—$18,907; December 31, 2004—$20,729) | 18,468 | 20,001 | ||||||
Restricted equity securities | 546 | 603 | ||||||
Total loans | 132,593 | 124,673 | ||||||
Allowance for loan losses | (1,437 | ) | (1,631 | ) | ||||
Net loans | 131,156 | 123,042 | ||||||
Bank premises and equipment, net | 4,044 | 4,205 | ||||||
Accrued interest receivable | 949 | 933 | ||||||
Foreclosed properties | 418 | 2 | ||||||
Bank owned life insurance | 4,588 | 4,483 | ||||||
Other assets | 2,005 | 1,441 | ||||||
Total assets | $ | 193,327 | $ | 190,591 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Noninterest-bearing deposits | $ | 27,217 | $ | 27,211 | ||||
Interest-bearing deposits | 137,592 | 134,044 | ||||||
Total deposits | 164,809 | 161,255 | ||||||
Securities sold under agreements to repurchase | 121 | 2,493 | ||||||
Accrued interest payable | 131 | 110 | ||||||
Other liabilities | 1,323 | 883 | ||||||
Total liabilities | 166,384 | 164,741 | ||||||
Commitments and contingent liabilities | — | — | ||||||
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 | 8,665 | 7,444 | ||||||
Accumulated other comprehensive income, net | (4 | ) | 124 | |||||
Total stockholders’ equity | 26,943 | 25,850 | ||||||
Total liabilities and stockholders’ equity | $ | 193,327 | $ | 190,591 | ||||
Cardinal Bankshares Corporation and Subsidiary
Consolidated Statements of Income (Unaudited)
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
(In thousands, except share data) | 2005 | 2004 | 2005 | 2004 | |||||||||||
Interest income | |||||||||||||||
Loans and fees on loans | $ | 2,211 | $ | 1,981 | $ | 6,378 | $ | 5,979 | |||||||
Federal funds sold and securities purchased under agreements to resell | 52 | 27 | 110 | 71 | |||||||||||
Investment securities: | |||||||||||||||
Taxable | 178 | 232 | 596 | 678 | |||||||||||
Exempt from federal income tax | 227 | 231 | 695 | 686 | |||||||||||
Deposits with banks | 55 | 4 | 89 | 18 | |||||||||||
Total interest income | 2,723 | 2,475 | 7,868 | 7,432 | |||||||||||
Interest expense | |||||||||||||||
Deposits | 925 | 762 | 2,544 | 2,325 | |||||||||||
Borrowings | 3 | 18 | 25 | 38 | |||||||||||
Total interest expense | 928 | 780 | 2,569 | 2,363 | |||||||||||
Net interest income | 1,795 | 1,695 | 5,299 | 5,069 | |||||||||||
Provision for loan losses | 12 | 30 | 48 | 55 | |||||||||||
Net interest income after provision for loan losses | 1,783 | 1,665 | 5,251 | 5,014 | |||||||||||
Noninterest income | |||||||||||||||
Service charges on deposit accounts | 68 | 67 | 197 | 201 | |||||||||||
Other service charges and fees | 27 | 22 | 76 | 65 | |||||||||||
Net realized gains on sales of securities | — | — | 9 | 4 | |||||||||||
Other operating income | 82 | 105 | 244 | 265 | |||||||||||
Total noninterest income | 177 | 194 | 526 | 535 | |||||||||||
Noninterest expense | |||||||||||||||
Salaries and employee benefits | 781 | 712 | 2,166 | 1,964 | |||||||||||
Occupancy and equipment | 170 | 152 | 535 | 422 | |||||||||||
Foreclosed assets, net | (17 | ) | (1 | ) | (17 | ) | 8 | ||||||||
Other operating expense | 398 | 278 | 1,058 | 939 | |||||||||||
Total noninterest expense | 1,332 | 1,141 | 3,742 | 3,333 | |||||||||||
Income before income taxes | 628 | 718 | 2,035 | 2,216 | |||||||||||
Income tax expense | 126 | 158 | 430 | 501 | |||||||||||
Net Income | $ | 502 | $ | 560 | $ | 1,605 | $ | 1,715 | |||||||
Basic earnings per share | $ | 0.33 | $ | 0.37 | $ | 1.05 | $ | 1.12 | |||||||
Diluted earnings per share | $ | 0.33 | $ | 0.37 | $ | 1.05 | $ | 1.12 | |||||||
Weighted average basic shares outstanding | 1,535,733 | 1,535,733 | 1,535,733 | 1,535,733 | |||||||||||
Weighted average diluted shares outstanding | 1,535,733 | 1,535,733 | 1,535,733 | 1,535,733 |