Exhibit 99.1
NEWS RELEASE
FOR IMMEDIATE RELEASE | Contact: Bernard H. Clineburg, |
Tysons Corner, Virginia | Chairman, President & Chief Executive Officer |
October 19, 2005 | or |
| Robert A. Cern, |
| Executive Vice President & Chief Financial Officer |
| 703-584-3400 |
CARDINAL FINANCIAL CORPORATION REPORTS
RECORD THIRD QUARTER AND YEAR TO DATE EARNINGS
Cardinal Financial Corporation (NASDAQ: CFNL) (the “Company”), parent company of Cardinal Bank, announced its results of operations for the third quarter, which ended September 30, 2005.
HIGHLIGHTS
• Net income increases 677% to $3.0 million for the third quarter of 2005 compared to the same period of 2004.
• Fully diluted earnings per share increases 500% to $0.12 during the third quarter of 2005 compared to the same quarter of 2004.
• Net interest margin continues upward trend.
• Asset quality remains excellent.
• Total assets at September 30, 2005 increase 31% to $1.54 billion compared to September 30, 2004.
RESULTS OF OPERATIONS
Net income and earnings per share rise significantly
The Company reported record quarterly net income of $3.0 million, a 677% increase from the $384 thousand in net income reported for the third quarter of 2004. Earnings per diluted share for the third quarter of 2005 were $0.12, a 500% increase over the same quarter of 2004. For the nine months ended September 30, 2005, net income was $6.9 million, a 297% increase over the same nine month period of 2004. Earnings per diluted share for the nine months ended September 30, 2005 were $0.32, compared to $0.09 for the same period of 2004, a 256% increase. Operating results for 2005 include nine months of operations of Cardinal Bank’s
subsidiary, George Mason Mortgage, whereas 2004 operating results include George Mason Mortgage’s operations only from the date of purchase, July 7, 2004.
Net interest income increases 41% and non-interest income increases 164%
Net interest income for the quarter ended September 30, 2005 was $10.1 million, a 41% increase from the comparable period of 2004. Non-interest income for the quarter was $7.3 million, a 164% increase over the quarter ended September 30, 2004. Partially offsetting these revenue increases was a $3.5 million, or 40%, increase in non-interest expense from $8.9 million for the third quarter of 2004 to $12.4 million for the third quarter of 2005. The Company’s interest rate spread, or the difference between what it earns on its interest-earning assets compared to interest-bearing liabilities, increased by 0.19% compared to the same quarter of 2004. Average interest-earning assets during the third quarter of 2005 were $1.39 billion, a 23% increase over the same quarter of 2004. Average interest-bearing liabilities during the third quarter of 2005 were $1.16 billion, an 18% increase over the same quarter in 2004. The Company’s interest rate spread was 2.47% for the quarter ended September 30, 2005, compared to 2.28% for the same quarter of 2004. Average non-interest bearing deposits during the third quarter of 2005 were $124.6 million, a 31% increase over the same quarter of 2004.
Net interest income for the nine months ended September 30, 2005 was $27.1 million, a 59% increase from the comparable period of 2004. Non-interest income for the first nine months of 2005 was $18.8 million, a 345% increase from the same nine month period of 2004. Partially offsetting these revenue increases was a $15.9 million, or 90%, increase in non-interest expense from $17.7 million for the nine months ended September 30, 2004 to $33.6 million for the nine months ended September 30, 2005. As previously noted, results of George Mason Mortgage are included in the nine month results since the date of acquisition, July 7, 2004. Average interest-earning assets for the first nine months of 2005 were $1.25 billion, a 51% increase over the same period of 2004. Average interest-bearing liabilities for the first nine months of 2005 were $1.04 billion, a 54% increase over the first nine months of 2004. The Company’s interest rate spread was 2.45% for the first nine months of 2005, compared to 2.37% for the first nine months of 2004. Average non-interest bearing deposits were $113.6 million for the nine months ended September 30, 2005, a 37% increase over the same period of 2004.
Net interest margin continues to widen
The Company’s net interest margin, or net interest income divided by average earning assets, was 2.92% and 2.89% for the three and nine months ended September 30, 2005, respectively, which compares to 2.55% and 2.74% for the three and nine months ended September 30, 2004, respectively. The Company remains asset sensitive which indicates that net interest income, the Company’s principal source of revenue, should grow in a rising interest rate environment. The recent flattening of the yield curve has, however, partially offset the benefits of the Company’s asset sensitivity.
Provision for loan losses
The Company recorded provisions for loan losses of $500 thousand and $1.9 million for the three and nine months ended September 30, 2005, respectively, which compares to $529 thousand and $918 thousand for the same periods of 2004. As described below, the Company continues to have a small amount of non-accrual loans. Loan charge-offs net of recoveries
through the first nine months of 2005 were 0.01% of average loans receivable.
FINANCIAL CONDITION
Total assets grow 31% in the past year
Total assets of the Company were $1.54 billion at September 30, 2005, a $328.0 million, or 27%, increase from December 31, 2004 and a $362.3 million, or 31%, increase from September 30, 2004. Loans held for sale were $454.7 million, $365.5 million and $347.5 million at September 30, 2005, December 31, 2004 and September 30, 2004, respectively. During the first nine months of 2005, George Mason Mortgage originated or acquired $3.29 billion in loans, including $1.67 billion in loans for companies that it manages for others. Loans receivable, net of fees, were $632.1 million, $489.9 million and $439.0 million at September 30, 2005, December 31, 2004 and September 30, 2004, respectively. Deposits at September 30, 2005 were $1.09 billion, a $270.2 million, or 33%, increase from December 31, 2004 and a $274.5 million, or 34%, increase from September 30, 2004.
Capitalization
Both the Company and Cardinal Bank remain “well capitalized” from a regulatory perspective. At September 30, 2005, shareholders’ equity was $146.7 million, a $51.6 million, or 54%, increase from December 31, 2004 and a $53.1 million, or 57%, increase from September 30, 2004. In addition to earnings retained in the Company, these increases were the result of the Company’s secondary common stock offering, which raised $39.8 million, and its previously reported acquisition of Wilson/Bennett Capital Management, which resulted in the issuance of $4.9 million of common stock. Both of these events occurred in the second quarter of 2005.
Strong credit quality demonstrated
The Company had $220 thousand of non-accrual loans at September 30, 2005, compared to $547 thousand and $252 thousand of non-accrual loans at December 31, 2004 and September 30, 2004, respectively. Non-accrual loans represented 0.03% of loans receivable, net of fees at September 30, 2005. The allowance for loan losses was 1.22% of loans receivable, net of fees at September 30, 2005, 1.20% at December 31, 2004, and 1.18% at September 30, 2004. The Company did not have any foreclosed real estate properties at September 30, 2005, December 31, 2004 or September 30, 2004.
MANAGEMENT COMMENTS
Bernard H. Clineburg, Chairman, President and Chief Executive Officer of the Company said, “The Company continues to progress on several fronts. Our net interest margin continues to improve as does our profitability. Credit quality remains strong and we continue to expand our deposit base. We are excited about the opening of our new branch in Washington, D.C. during the fourth quarter of 2005 and anticipate continued branch network expansion in 2006. The Company remains committed to providing outstanding customer service while maximizing value for its shareholders.”
CAUTION ABOUT FORWARD-LOOKING STATEMENTS
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 of the Company to differ materially from those matters expressed or implied 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 for the year ended December 31, 2004 and other reports filed with and furnished to the Securities and Exchange Commission.
About Cardinal Financial Corporation: Cardinal Financial Corporation is a financial holding company headquartered in Tysons Corner, Virginia. On September 30, 2005, Cardinal Financial Corporation had assets of $1.54 billion. Through its wholly-owned subsidiary, Cardinal Bank, the Company serves Northern Virginia with 20 conveniently located banking offices in Alexandria, Annandale, Arlington, Clifton, Fairfax, Fairfax City, Fredericksburg, Herndon, Leesburg, Manassas, McLean, Purcellville, Reston, Stafford, Sterling, Sterling Park, Tysons Corner (two offices) and Woodbridge (two offices). Cardinal also operates three other subsidiaries: a residential mortgage lending company, George Mason Mortgage, LLC, based in Fairfax, with eight offices throughout the Washington Metropolitan region; a full-service investment services company, Cardinal Wealth Services, Inc., and an asset management company, Wilson Bennett Capital Management, Inc. The company’s stock is traded on NASDAQ (CFNL). For additional information please visit our Web site at www.cardinalbank.com or call (703) 584-3400.
Cardinal Financial Corporation and Subsidiaries
Summary Statements of Condition
September 30, 2005, December 31, 2004 and September 30, 2004
(Dollars in thousands)
| | (Unaudited) | | | | (Unaudited) | | % Change | |
| | September 30, 2005 | | December 31, 2004 | | September 30, 2004 | | Current Year | | Year Over Year | |
Cash and due from banks | | $ | 16,658 | | $ | 15,205 | | $ | 13,726 | | 9.6 | % | 21.4 | % |
Federal funds sold | | 86,415 | | 8,203 | | 25,580 | | 953.5 | % | 237.8 | % |
| | | | | | | | | | | |
Investment securities - available-for-sale | | 171,833 | | 151,554 | | 159,981 | | 13.4 | % | 7.4 | % |
Investment securities - held-to-maturity | | 120,794 | | 137,953 | | 148,034 | | -12.4 | % | -18.4 | % |
Total investment securities | | 292,627 | | 289,507 | | 308,015 | | 1.1 | % | -5.0 | % |
| | | | | | | | | | | |
Other investments | | 7,363 | | 8,110 | | 6,797 | | -9.2 | % | 8.3 | % |
Loans held for sale, net | | 454,660 | | 365,454 | | 347,471 | | 24.4 | % | 30.8 | % |
| | | | | | | | | | | |
Loans receivable, net of fees | | 632,148 | | 489,896 | | 438,957 | | 29.0 | % | 44.0 | % |
Allowance for loan losses | | (7,706 | ) | (5,878 | ) | (5,168 | ) | 31.1 | % | 49.1 | % |
Loans receivable, net | | 624,442 | | 484,018 | | 433,789 | | 29.0 | % | 44.0 | % |
| | | | | | | | | | | |
Premises and equipment, net | | 17,591 | | 15,531 | | 14,917 | | 13.3 | % | 17.9 | % |
Goodwill and intangibles, net | | 20,644 | | 14,694 | | 14,725 | | 40.5 | % | 40.2 | % |
Other assets | | 19,226 | | 10,854 | | 12,295 | | 77.1 | % | 56.4 | % |
| | | | | | | | | | | |
TOTAL ASSETS | | $ | 1,539,626 | | $ | 1,211,576 | | $ | 1,177,315 | | 27.1 | % | 30.8 | % |
| | | | | | | | | | | |
Non-interest bearing deposits | | $ | 128,467 | | $ | 105,424 | | $ | 101,934 | | 21.9 | % | 26.0 | % |
Interest bearing deposits | | 965,924 | | 718,786 | | 718,000 | | 34.4 | % | 34.5 | % |
Total deposits | | 1,094,391 | | 824,210 | | 819,934 | | 32.8 | % | 33.5 | % |
| | | | | | | | | | | |
Other borrowed funds | | 163,892 | | 201,085 | | 159,353 | | -18.5 | % | 2.8 | % |
Warehouse financing | | 5 | | 30,245 | | 12,596 | | -100.0 | % | -100.0 | % |
Mortgage funding checks | | 104,283 | | 46,392 | | 76,250 | | 124.8 | % | 36.8 | % |
Escrow liabilities | | 9,626 | | 3,020 | | 3,519 | | 218.7 | % | 173.5 | % |
Other liabilities | | 20,691 | | 11,519 | | 12,066 | | 79.6 | % | 71.5 | % |
| | | | | | | | | | | |
Shareholders’ equity | | 146,738 | | 95,105 | | 93,597 | | 54.3 | % | 56.8 | % |
| | | | | | | | | | | |
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY | | $ | 1,539,626 | | $ | 1,211,576 | | $ | 1,177,315 | | 27.1 | % | 30.8 | % |
Cardinal Financial Corporation and Subsidiaries
Summary Income Statements
Three and Nine Months Ended September 30, 2005 and 2004
(Dollars in thousands, except share and per share data)
(Unaudited)
| | For the Three Months Ended
September 30, | | | | For the Nine Months Ended
September 30, | | | |
| | 2005 | | 2004 | | % Change | | 2005 | | 2004 | | % Change | |
Net interest income | | $ | 10,111 | | $ | 7,194 | | 40.5 | % | $ | 27,058 | | $ | 17,025 | | 58.9 | % |
Provision for loan losses | | (500 | ) | (529 | ) | -5.5 | % | (1,869 | ) | (918 | ) | 103.6 | % |
Net interest income after provision for loan losses | | 9,611 | | 6,665 | | 44.2 | % | 25,189 | | 16,107 | | 56.4 | % |
| | | | | | | | | | | | | |
Service charges on deposit accounts | | 348 | | 296 | | 17.6 | % | 958 | | 798 | | 20.1 | % |
Loan service charges | | 771 | | 129 | | 497.7 | % | 2,015 | | 414 | | 386.7 | % |
Investment fee income | | 497 | | 150 | | 231.3 | % | 947 | | 498 | | 90.2 | % |
Net gain on sales of loans | | 4,752 | | 1,398 | | 239.9 | % | 12,368 | | 1,460 | | 747.1 | % |
Net realized gain on investment securities available-for-sale | | — | | 3 | | -100.0 | % | 33 | | 245 | | -86.5 | % |
Management fee income | | 969 | | 802 | | 20.8 | % | 2,467 | | 802 | | 207.6 | % |
Other non-interest income | | 12 | | 6 | | 100.0 | % | 19 | | 9 | | 111.1 | % |
Total non-interest income | | 7,349 | | 2,784 | | 164.0 | % | 18,807 | | 4,226 | | 345.0 | % |
| | | | | | | | | | | | | |
Net interest income & non-interest income | | 16,960 | | 9,449 | | 79.5 | % | 43,996 | | 20,333 | | 116.4 | % |
| | | | | | | | | | | | | |
Salaries and benefits | | 6,430 | | 4,802 | | 33.9 | % | 16,866 | | 8,904 | | 89.4 | % |
Occupancy | | 1,063 | | 932 | | 14.1 | % | 3,134 | | 1,893 | | 65.6 | % |
Depreciation | | 711 | | 583 | | 22.0 | % | 2,100 | | 1,215 | | 72.8 | % |
Data processing | | 233 | | 255 | | -8.6 | % | 1,227 | | 647 | | 89.6 | % |
Telecommunications | | 303 | | 197 | | 53.8 | % | 913 | | 405 | | 125.4 | % |
Other operating expense | | 3,665 | | 2,124 | | 72.6 | % | 9,382 | | 4,682 | | 100.4 | % |
Total non-interest expense | | 12,405 | | 8,893 | | 39.5 | % | 33,622 | | 17,746 | | 89.5 | % |
Net income before income taxes | | 4,555 | | 556 | | 719.2 | % | 10,374 | | 2,587 | | 301.0 | % |
Provision for income taxes | | 1,570 | | 172 | | 812.8 | % | 3,485 | | 850 | | 310.0 | % |
NET INCOME | | $ | 2,985 | | $ | 384 | | 677.3 | % | $ | 6,889 | | $ | 1,737 | | 296.6 | % |
| | | | | | | | | | | | | |
Earnings per common share, basic | | $ | 0.12 | | $ | 0.02 | | 500.0 | % | $ | 0.32 | | $ | 0.10 | | 220.0 | % |
Earnings per common share, diluted | | $ | 0.12 | | $ | 0.02 | | 500.0 | % | $ | 0.32 | | $ | 0.09 | | 255.6 | % |
Weighted-average common shares outstanding - basic | | 24,346,701 | | 18,439,021 | | 32.0 | % | 21,344,071 | | 18,101,639 | | 17.9 | % |
Weighted-average common shares outstanding - diluted | | 24,631,402 | | 18,697,179 | | 31.7 | % | 21,606,448 | | 18,361,013 | | 17.7 | % |
Cardinal Financial Corporation and Subsidiaries
Selected Financial Information
(Dollars in thousands, except per share data and ratios)
(Unaudited)
| | For the Three Months Ended
September 30, | | For the Nine Months Ended
September 30, | |
| | 2005 | | 2004 | | 2005 | | 2004 | |
Income Statements: | | | | | | | | | |
Interest income | | $ | 18,341 | | $ | 12,189 | | $ | 47,758 | | $ | 27,571 | |
Interest expense | | 8,230 | | 4,995 | | 20,700 | | 10,546 | |
Net interest income | | 10,111 | | 7,194 | | 27,058 | | 17,025 | |
Provision for loan losses | | 500 | | 529 | | 1,869 | | 918 | |
Net interest income after provision for loan losses | | 9,611 | | 6,665 | | 25,189 | | 16,107 | |
Non-interest income | | 7,349 | | 2,784 | | 18,807 | | 4,226 | |
Non-interest expense | | 12,405 | | 8,893 | | 33,622 | | 17,746 | |
Net income before income taxes | | 4,555 | | 556 | | 10,374 | | 2,587 | |
Provision for income taxes | | 1,570 | | 172 | | 3,485 | | 850 | |
Net income | | $ | 2,985 | | $ | 384 | | $ | 6,889 | | $ | 1,737 | |
| | September 30, 2005 | | December 31, 2004 | |
Balance Sheet Data: | | | | | |
Total assets | | $ | 1,539,626 | | $ | 1,211,576 | |
Loans receivable, net of fees | | 632,148 | | 489,896 | |
Allowance for loan losses | | (7,706 | ) | (5,878 | ) |
Loans held for sale | | 454,660 | | 365,454 | |
Total investment securities | | 292,627 | | 289,507 | |
Total deposits | | 1,094,391 | | 824,210 | |
Other borrowed funds | | 163,892 | | 201,085 | |
Total shareholders’ equity | | 146,738 | | 95,105 | |
| | | | | |
Common shares outstanding | | 24,355 | | 18,463 | |
| | | | | | | |
| | For the Three Months Ended September 30, | | For the Nine Months Ended September 30, | |
| | 2005 | | 2004 | | 2005 | | 2004 | |
Selected Average Balances | | | | | | | | | |
Total assets | | $ | 1,453,300 | | $ | 1,179,444 | | $ | 1,299,771 | | $ | 859,040 | |
Loans receivable, net of fees | | 614,194 | | 416,203 | | 560,323 | | 370,306 | |
Allowance for loan losses | | (7,378 | ) | (4,864 | ) | (6,643 | ) | (4,564 | ) |
Loans held for sale | | 468,808 | | 369,623 | | 382,603 | | 124,175 | |
Total investment securities | | 273,839 | | 319,950 | | 284,835 | | 317,034 | |
Earning assets | | 1,387,422 | | 1,128,262 | | 1,249,050 | | 828,674 | |
Total deposits | | 1,021,965 | | 756,991 | | 934,014 | | 599,042 | |
Other borrowed funds | | 258,735 | | 315,712 | | 223,562 | | 161,866 | |
Total shareholders’ equity | | 147,398 | | 96,015 | | 122,000 | | 93,275 | |
Weighted Average: | | | | | | | | | |
Common shares outstanding - basic | | 24,347 | | 18,439 | | 21,344 | | 18,102 | |
Common shares outstanding - diluted | | 24,631 | | 18,697 | | 21,606 | | 18,361 | |
| | | | | | | | | |
Per Common Share Data: | | | | | | | | | |
Basic net income | | $ | 0.12 | | $ | 0.02 | | $ | 0.32 | | $ | 0.10 | |
Fully diluted net income | | 0.12 | | 0.02 | | 0.32 | | 0.09 | |
Book value | | 6.03 | | 5.08 | | 6.03 | | 5.08 | |
Tangible book value | | 5.18 | | 4.28 | | 5.18 | | 4.28 | |
| | | | | | | | | |
Performance Ratios: | | | | | | | | | |
Return on average assets | | 0.82 | % | 0.13 | % | 0.71 | % | 0.27 | % |
Return on average equity | | 8.10 | % | 1.60 | % | 7.53 | % | 2.48 | % |
Net interest margin (1) | | 2.92 | % | 2.55 | % | 2.89 | % | 2.74 | % |
Efficiency ratio (2) | | 71.05 | % | 89.13 | % | 73.31 | % | 83.51 | % |
Non-interest income to average assets | | 2.02 | % | 0.94 | % | 1.93 | % | 0.66 | % |
Non-interest expense to average assets | | 3.41 | % | 3.02 | % | 3.45 | % | 2.75 | % |
| | | | | | | | | |
Asset Quality Data: | | | | | | | | | |
Annualized net charge-offs to average loans receivable, net of fees | | | | | | 0.01 | % | 0.04 | % |
Non-performing loans to loans receivable, net of fees | | | | | | 0.03 | % | 0.06 | % |
Non-performing loans to total assets | | | | | | 0.01 | % | 0.02 | % |
Allowance for loan losses to loans receivable, net of fees | | | | | | 1.22 | % | 1.18 | % |
Allowance for loan losses to nonperforming loans | | | | | | 3502.7 | % | 2050.8 | % |
| | | | | | | | | |
Capital Ratios: | | | | | | | | | |
Tier 1 risk-based capital | | | | | | 14.62 | % | 12.94 | % |
Total risk-based capital | | | | | | 15.40 | % | 13.65 | % |
Leverage capital ratio | | | | | | 10.31 | % | 8.53 | % |
(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 and Nine Months Ended September 30, 2005 and 2004
(Dollars in thousands)
(Unaudited)
| | For the Three Months Ended | | For the Nine Months Ended | |
| | September 30, 2005 | | September 30, 2004 | | September 30, 2005 | | September 30, 2004 | |
| | Average
Balance | | Average
Yield | | Average
Balance | | Average
Yield | | Average
Balance | | Average
Yield | | Average
Balance | | Average
Yield | |
Interest-earning assets: | | | | | | | | | | | | | | | | | |
Loans receivable, net of fees | | $ | 614,194 | | 6.10 | % | $ | 416,203 | | 5.60 | % | $ | 560,323 | | 5.94 | % | $ | 370,306 | | 5.55 | % |
Loans held for sale | | 468,808 | | 5.21 | % | 369,623 | | 3.54 | % | 382,603 | | 4.92 | % | 124,175 | | 3.51 | % |
Investment securities - available-for-sale | | 149,207 | | 3.79 | % | 165,721 | | 3.71 | % | 154,356 | | 3.78 | % | 163,009 | | 3.57 | % |
Investment securities - held-to-maturity | | 124,632 | | 3.84 | % | 154,229 | | 3.71 | % | 130,479 | | 3.84 | % | 154,025 | | 3.69 | % |
Other investments | | 6,718 | | 3.31 | % | 8,163 | | 3.82 | % | 6,141 | | 3.97 | % | 5,464 | | 3.95 | % |
Federal funds sold | | 23,863 | | 3.46 | % | 14,323 | | 1.37 | % | 15,148 | | 3.06 | % | 11,695 | | 1.09 | % |
Total interest-earning assets | | 1,387,422 | | 5.29 | % | 1,128,262 | | 4.32 | % | 1,249,050 | | 5.10 | % | 828,674 | | 4.44 | % |
| | | | | | | | | | | | | | | | | |
Non-interest earning assets: | | | | | | | | | | | | | | | | | |
Cash and due from banks | | 13,963 | | | | 14,904 | | | | 8,906 | | | | 12,050 | | | |
Premises and equipment, net | | 17,525 | | | | 14,727 | | | | 17,288 | | | | 9,893 | | | |
Goodwill and intangibles, net | | 20,649 | | | | 15,129 | | | | 17,613 | | | | 5,100 | | | |
Accrued interest and other assets | | 21,119 | | | | 11,286 | | | | 13,557 | | | | 7,887 | | | |
Allowance for loan losses | | (7,378 | ) | | | (4,864 | ) | | | (6,643 | ) | | | (4,564 | ) | | |
| | | | | | | | | | | | | | | | | |
TOTAL ASSETS | | $ | 1,453,300 | | | | $ | 1,179,444 | | | | $ | 1,299,771 | | | | $ | 859,040 | | | |
| | | | | | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | |
Interest-bearing deposits | | $ | 897,412 | | 3.00 | % | $ | 661,996 | | 2.22 | % | $ | 820,380 | | 2.77 | % | $ | 516,203 | | 2.18 | % |
Other borrowed funds | | 258,735 | | 2.22 | % | 315,712 | | 1.68 | % | 223,562 | | 2.22 | % | 161,866 | | 1.73 | % |
Total interest-bearing liabilities | | 1,156,147 | | 2.82 | % | 977,708 | | 2.04 | % | 1,043,942 | | 2.65 | % | 678,069 | | 2.07 | % |
| | | | | | | | | | | | | | | | | |
Noninterest-bearing liabilities: | | | | | | | | | | | | | | | | | |
Noninterest-bearing deposits | | 124,553 | | | | 94,995 | | | | 113,634 | | | | 82,839 | | | |
Other liabilities | | 25,202 | | | | 10,726 | | | | 20,195 | | | | 4,857 | | | |
| | | | | | | | | | | | | | | | | |
Shareholders’ equity | | 147,398 | | | | 96,015 | | | | 122,000 | | | | 93,275 | | | |
| | | | | | | | | | | | | | | | | |
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY | | $ | 1,453,300 | | | | $ | 1,179,444 | | | | $ | 1,299,771 | | | | $ | 859,040 | | | |
| | | | | | | | | | | | | | | | | |
NET INTEREST MARGIN | | | | 2.92 | % | | | 2.55 | % | | | 2.89 | % | | | 2.74 | % |
Cardinal Financial Corporation and Subsidiaries
Segment Reporting at and for the Three and Nine Months Ended September 30, 2005 and 2004
(Dollars in thousands)
(Unaudited)
At and for the Three Months Ended September 30, 2005:
| | Commercial | | Mortgage | | Investment | | Intersegment | | | | | |
| | Banking | | Banking | | Services | | Elimination | | Other | | Consolidated | |
Net interest income | | $ | 8,544 | | $ | 1,780 | | $ | — | | $ | — | | $ | (213 | ) | $ | 10,111 | |
Provision for loan losses | | 500 | | — | | — | | — | | — | | 500 | |
Non-interest income | | 479 | | 6,362 | | 497 | | — | | 11 | | 7,349 | |
Non-interest expense | | 6,542 | | 4,845 | | 454 | | — | | 564 | | 12,405 | |
Provision for income taxes | | 659 | | 1,153 | | 3 | | — | | (245 | ) | 1,570 | |
Net income (loss) | | $ | 1,322 | | $ | 2,144 | | $ | 40 | | $ | — | | $ | (521 | ) | $ | 2,985 | |
| | | | | | | | | | | | | |
Total Assets | | $ | 1,409,575 | | $ | 467,261 | | $ | 7,330 | | $ | (511,520 | ) | $ | 166,980 | | $ | 1,539,626 | |
At and for the Three Months Ended September 30, 2004:
| | Commercial | | Mortgage | | Investment | | Intersegment | | | | | |
| | Banking | | Banking | | Services | | Elimination | | Other | | Consolidated | |
Net interest income | | $ | 5,716 | | $ | 1,583 | | $ | — | | $ | — | | $ | (105 | ) | $ | 7,194 | |
Provision for loan losses | | 529 | | — | | — | | — | | — | | 529 | |
Non-interest income | | 325 | | 2,304 | | 150 | | — | | 5 | | 2,784 | |
Non-interest expense | | 4,239 | | 4,156 | | 189 | | — | | 309 | | 8,893 | |
Provision for income taxes | | 402 | | (76 | ) | (15 | ) | — | | (139 | ) | 172 | |
Net income (loss) | | $ | 871 | | $ | (193 | ) | $ | (24 | ) | $ | — | | $ | (270 | ) | $ | 384 | |
| | | | | | | | | | | | | |
Total Assets | | $ | 1,075,460 | | $ | 356,438 | | $ | 677 | | $ | (370,480 | ) | $ | 115,220 | | $ | 1,177,315 | |
At and for the Nine Months Ended September 30, 2005:
| | Commercial | | Mortgage | | Investment | | Intersegment | | | | | |
| | Banking | | Banking | | Services | | Elimination | | Other | | Consolidated | |
Net interest income | | $ | 22,980 | | $ | 4,723 | | $ | — | | $ | — | | $ | (645 | ) | $ | 27,058 | |
Provision for loan losses | | 1,869 | | — | | — | | — | | — | | 1,869 | |
Non-interest income | | 1,325 | | 16,512 | | 946 | | — | | 24 | | 18,807 | |
Non-interest expense | | 18,008 | | 13,223 | | 999 | | — | | 1,392 | | 33,622 | |
Provision for income taxes | | 1,490 | | 2,691 | | (35 | ) | — | | (661 | ) | 3,485 | |
Net income (loss) | | $ | 2,938 | | $ | 5,321 | | $ | (18 | ) | $ | — | | $ | (1,352 | ) | $ | 6,889 | |
| | | | | | | | | | | | | |
Total Assets | | $ | 1,409,575 | | $ | 467,261 | | $ | 7,330 | | $ | (511,520 | ) | $ | 166,980 | | $ | 1,539,626 | |
At and for the Nine Months Ended September 30, 2004:
| | Commercial | | Mortgage | | Investment | | Intersegment | | | | | |
| | Banking | | Banking | | Services | | Elimination | | Other | | Consolidated | |
Net interest income | | $ | 15,493 | | $ | 1,583 | | $ | — | | $ | — | | $ | (51 | ) | $ | 17,025 | |
Provision for loan losses | | 918 | | — | | — | | — | | — | | 918 | |
Non-interest income | | 1,430 | | 2,304 | | 487 | | — | | 5 | | 4,226 | |
Non-interest expense | | 12,017 | | 4,156 | | 613 | | — | | 960 | | 17,746 | |
Provision for income taxes | | 1,313 | | (76 | ) | (45 | ) | — | | (342 | ) | 850 | |
Net income (loss) | | $ | 2,675 | | $ | (193 | ) | $ | (81 | ) | $ | — | | $ | (664 | ) | $ | 1,737 | |
| | | | | | | | | | | | | |
Total Assets | | $ | 1,075,460 | | $ | 356,438 | | $ | 677 | | $ | (370,480 | ) | $ | 115,220 | | $ | 1,177,315 | |
