EXHIBIT 99.1
Cardinal Bankshares Corporation Announces Consistent Earnings for 2005
FLOYD, Va., March 17 /PRNewswire-FirstCall/ -- Cardinal Bankshares Corporation (OTC Bulletin Board: CDBK) is pleased to report consistent earnings during 2005. “With the continued increasing costs of branch expansions, personnel additions, regulatory compliance and interest expenses, it is particularly gratifying to report steady earnings,” stated Leon Moore, chairman and chief executive officer. Moore also stated that the Company was once again able to increase the cash dividend to shareholders to $.53 per common share. “This represents a 6.00% increase over 2004 and marks the 14th consecutive year we have been able to increase cash dividends to shareholders.”
Net income amounted to $2,203,000, consistent with the 2004 income of $2,242,000. Basic earnings per share amounted to $1.44, compared to $1.46 per share in 2004.
Net income for the 4th quarter of 2005 increased by 13% over 2004, ending at $598,333, compared to $527,375 in the 4th quarter 2004.
Total assets ended the year at $196,235,000. Net loans increased by $5.5 million and ended the year at $128,554,000.
Moore added, “Our continued strong performance allows Cardinal to add value to our shareholders, to the communities we serve and to our staff. Our exceptional capital position also places our Company in a position to consider our extended growth options in the future.”
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.
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 Subsidiaries
Consolidated Balance Sheets
December 31, (In thousands, except share data) |
| 2005 |
| 2004 |
| ||
|
|
| |||||
Assets |
|
|
|
|
|
|
|
Cash and due from banks |
| $ | 4,292 |
| $ | 4,162 |
|
Interest-bearing deposits in banks |
|
| 9,042 |
|
| 3,602 |
|
Federal funds sold |
|
| 5,125 |
|
| 7,175 |
|
Investment securities available for sale, at fair value |
|
| 19,308 |
|
| 20,942 |
|
Investment securities held to maturity |
|
| 17,470 |
|
| 20,001 |
|
Restricted equity securities |
|
| 546 |
|
| 603 |
|
Total loans |
|
| 129,981 |
|
| 124,673 |
|
Allowance for loan losses |
|
| (1,427 | ) |
| (1,631 | ) |
Net loans |
|
| 128,554 |
|
| 123,042 |
|
Bank premises and equipment, net |
|
| 3,997 |
|
| 4,205 |
|
Accrued interest receivable |
|
| 998 |
|
| 933 |
|
Foreclosed properties |
|
| 418 |
|
| 2 |
|
Bank owned life insurance |
|
| 4,631 |
|
| 4,483 |
|
Other assets |
|
| 1,854 |
|
| 1,441 |
|
Total assets |
| $ | 196,235 |
| $ | 190,591 |
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
Noninterest-bearing deposits |
| $ | 26,747 |
| $ | 27,211 |
|
Interest-bearing deposits |
|
| 141,101 |
|
| 134,044 |
|
Total deposits |
|
| 167,848 |
|
| 161,255 |
|
Securities sold under agreements to repurchase |
|
| 134 |
|
| 2,493 |
|
Accrued interest payable |
|
| 134 |
|
| 110 |
|
Other liabilities |
|
| 1,061 |
|
| 883 |
|
Total liabilities |
|
| 169,177 |
|
| 164,741 |
|
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 |
|
| 8,833 |
|
| 7,444 |
|
Accumulated other comprehensive income |
|
| (57 | ) |
| 124 |
|
Total stockholders’ equity |
|
| 27,058 |
|
| 25,850 |
|
Total liabilities and stockholders’ equity |
| $ | 196,235 |
| $ | 190,591 |
|
Cardinal Bankshares Corporation and Subsidiaries
Consolidated Statements of Income
Years ended December 31, |
|
|
|
|
|
|
|
(In thousands, except share and per share data) |
| 2005 |
| 2004 |
| ||
|
|
| |||||
Interest income |
|
|
|
|
|
|
|
Loans and fees on loans |
| $ | 8,698 |
| $ | 7,971 |
|
Federal funds sold and securities purchased under agreements to resell |
|
| 142 |
|
| 97 |
|
Investment securities: |
|
|
|
|
|
|
|
Taxable |
|
| 759 |
|
| 902 |
|
Exempt from federal income tax |
|
| 918 |
|
| 924 |
|
Deposits with banks |
|
| 167 |
|
| 26 |
|
Total interest income |
|
| 10,684 |
|
| 9,920 |
|
Interest expense |
|
|
|
|
|
|
|
Deposits |
|
| 3,500 |
|
| 3,101 |
|
Borrowings |
|
| 26 |
|
| 55 |
|
Total interest expense |
|
| 3,526 |
|
| 3,156 |
|
Net interest income |
|
| 7,158 |
|
| 6,764 |
|
Provision for loan losses |
|
| 48 |
|
| 55 |
|
Net interest income after provision for loan losses |
|
| 7,110 |
|
| 6,709 |
|
Noninterest income |
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
| 262 |
|
| 267 |
|
Other service charges and fees |
|
| 100 |
|
| 87 |
|
Net realized gains on sales of securities |
|
| 9 |
|
| 4 |
|
Income on bank owned life insurance |
|
| 148 |
|
| 156 |
|
Other income |
|
| 240 |
|
| 255 |
|
Total noninterest income |
|
| 759 |
|
| 769 |
|
Noninterest expense |
|
|
|
|
|
|
|
Salaries and employee benefits |
|
| 2,991 |
|
| 2,719 |
|
Occupancy and equipment |
|
| 710 |
|
| 618 |
|
Foreclosed assets, net |
|
| (13 | ) |
| 12 |
|
Other operating expense |
|
| 1,382 |
|
| 1,260 |
|
Total noninterest expense |
|
| 5,070 |
|
| 4,609 |
|
Income before income taxes |
|
| 2,799 |
|
| 2,869 |
|
Income tax expense |
|
| 596 |
|
| 627 |
|
Net income |
| $ | 2,203 |
| $ | 2,242 |
|
Basic earnings per share |
| $ | 1.44 |
| $ | 1.46 |
|
Diluted earnings per share |
| $ | 1.44 |
| $ | 1.46 |
|
Weighted average basic shares outstanding |
|
| 1,535,733 |
|
| 1,535,733 |
|
Weighted average diluted shares outstanding |
|
| 1,535,733 |
|
| 1,535,733 |
|
CONTACT: Leon Moore, Chairman of the Board, President and CEO, or Stephanie Kent, Senior Vice President and Principal Financial Officer, of Cardinal Bankshares Corporation +1-540-745-4191, Fax: +1-540-745-4133
SOURCE Cardinal Bankshares Corporation
-0- 03/17/2006
/CONTACT: Leon Moore, Chairman of the Board, President and CEO, or Stephanie Kent, Senior Vice President and Principal Financial Officer, of Cardinal Bankshares Corporation +1-540-745-4191, Fax: +1-540-745-4133/
/Web site: http://www.bankoffloyd.com /
(CDBK)