Exhibit 99.1
NEWS RELEASE
FOR IMMEDIATE RELEASE | Contact: Bernard H. Clineburg, |
Tysons Corner, Virginia | | Chairman, President & Chief Executive Officer |
January 18, 2006 | | or |
| | Robert A. Cern, |
| | Executive Vice President & Chief Financial Officer
703-584-3400 |
CARDINAL REPORTS RECORD FOURTH QUARTER AND
ANNUAL EARNINGS
Cardinal Financial Corporation (NASDAQ: CFNL) (the “Company”), parent company of Cardinal Bank (the “Bank”), announced its results of operations for the fourth quarter of 2005.
HIGHLIGHTS
• Net income increased 72% to $3.0 million for the fourth quarter of 2005 compared to net income of $1.7 million during the same period of 2004.
• Annual net income increased 185% to $9.9 million, compared to net income of $3.5 million in 2004.
• Diluted earnings per share increased 33% to $0.12 during the fourth quarter of 2005, compared to $0.09 during the same quarter of 2004. Diluted annual earnings per share increased 132% to $0.44 in 2005, compared to $0.19 in 2004.
• Consolidated assets grew 20% to $1.45 billion at December 31, 2005 from $1.21 billion at December 31, 2004, primarily from a 44% increase in loans receivable. From the third quarter to the fourth quarter 2005, assets declined 6% from $1.54 billion to $1.45 billion as we focused on profitability.
• Total deposits grew 30% year over year.
• Net interest margin continued to trend upward.
• Asset quality remains excellent with net charge-offs for 2005 of 0.01% of average loans receivable.
• The Bank obtained all regulatory approvals necessary to initiate trust operations.
• The Board of Directors declared its second cash dividend.
RESULTS OF OPERATIONS
Net income and earnings per share reached record levels for the quarter and the year.
For the quarter ended December 31, 2005, the Company reported net income of $3.0 million, compared to $1.7 million for the same quarter of 2004, a 72% increase. Diluted earnings per share for the fourth quarter of 2005 and 2004 were $0.12 and $0.09, respectively, which represented an increase of 33%. Return on average assets was 0.84% for the quarter ended December 31, 2005 and 0.59% for the prior year’s fourth quarter. Return on average equity was 8.04% for the quarter ended December 31, 2005 and 7.17% for the prior year’s quarter.
For the year ended December 31, 2005, net income was $9.9 million, a 185% increase over 2004 net income of $3.5 million. Earnings per diluted share for the year ended December 31, 2005 were $0.44, compared to $0.19 for 2004, which represented an increase of 132%. Return on average assets was 0.74% for 2005 and 0.37% for 2004. Return on average equity was 7.67% for 2005 and 3.69% for 2004. Operating results for 2005 include a full year of operations for the Bank’s subsidiary, George Mason Mortgage, while 2004’s operating results included George Mason Mortgage’s operations only from the date of purchase, July 7, 2004.
Quarterly net interest income increased 39% and non-interest income increased 15%. Annual net interest income increased 53% and non-interest income increased 162%.
Net interest income for the quarter ended December 31, 2005 was $10.4 million, a 39% increase from the same quarter of 2004. Despite decreases in management fee income, non-interest income for the fourth quarter of 2005 was $5.9 million, a 15% increase from the same quarter of 2004. Non-interest income represented 36% of the Company’s revenues in the fourth quarter of 2005, compared to 40% in the same quarter of the prior year.
Partially offsetting the increases in net interest income and non-interest income was a $1.7 million, or 18%, increase in non-interest expense during the quarter ended December 31, 2005 compared to the same quarter of 2004. This increase was due principally to continued expansion of the branch banking business.
Average interest-earning assets for the fourth quarter of 2005 were $1.38 billion, a 23% increase over the same period of 2004. Average interest-bearing liabilities for the fourth quarter of 2005 were $1.14 billion, a 24% increase over the same quarter of 2004. The Company’s interest rate spread, or the difference between what it earns on its interest-earning assets compared to what it pays on its interest-bearing liabilities, was 2.47% and 2.28% for the fourth quarter of 2005 and 2004, respectively. Average non-interest bearing deposits were $114.3 million during the fourth quarter of 2005, a 6% increase over the same period of 2004.
Net interest income for the year ended December 31, 2005 was $37.5 million, a 53% increase from 2004. Non-interest income for 2005 was $24.7 million, a 162% increase over 2004. Non-interest income represented 40% and 28% of total revenues in 2005 and 2004, respectively. Partially offsetting these revenue increases was a $17.5 million, or 64%, increase in non-interest expense from 2004 to 2005. The increases in revenues and expenses are, as previously noted, primarily attributable to the inclusion of George Mason Mortgage for an entire year in 2005 compared to 2004 when it is included in consolidated operating results since the date of its
acquisition by the Bank.
Average interest-earning assets during 2005 were $1.29 billion, a 42% increase over 2004. Average interest-bearing liabilities during the 2005 were $1.04 billion, a 41% increase over 2004. The Company’s interest rate spread was 2.44% for 2005, compared to 2.32% for 2004. Average non-interest bearing deposits during 2005 were $113.8 million, a 28% increase over 2004.
Net interest margin continued to improve
The Company’s net interest margin, or net interest income divided by average earning assets, was 3.01% and 2.92% for the three months and year ended December 31, 2005, respectively, which compares to 2.68% and 2.72% for the three months and year ended December 31, 2004. 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 continued flattening of the yield curve has, however, partially offset the benefits of the Company’s asset sensitivity.
FINANCIAL CONDITION
Total assets grow 20% in the past year
Total assets of the Company were $1.45 billion at December 31, 2005, a $240.7 million, or 20% increase from December 31, 2004. From September 30, 2005 to December 31, 2005, assets decreased by 6% as a result of a decline in loans held for sale. In the fourth quarter of 2005, loans receivable grew by 12% or $73.5 million. Annual asset growth resulted primarily from significant loan growth in 2005 with a 44% increase in loans receivable or $215.7 million from December 31, 2004.
During 2005, George Mason Mortgage originated or acquired $4.28 billion in loans, including $2.23 billion in loans for companies that it manages for others. Loans held for sale at December 31, 2005 were $361.7 million, compared to $365.5 million at December 31, 2004. Loans held for sale decreased by $93.0 million from September 30, 2005 to December 31, 2005.
Total investment securities, including available-for-sale and held-to-maturity securities, were $294.2 million and $289.5 million at December 31, 2005 and 2004, respectively.
Credit Quality Remains Strong
Because of its loan receivable growth, the Company recorded provisions for loan losses of $587,000 and $2.5 million for the quarter and year ended December 31, 2005, respectively, compared to $709,000 and $1.6 million for the same periods of 2004.
Nonaccrual loans at December 31, 2005 were $215,000, or 0.03% of total loans receivable. Loan charge-offs net of recoveries in 2005 were 0.01% of average loans receivable. Non-accrual loans and loans ninety days or more past due were $247,000, or 0.04% of loans, at December 31, 2005. The ratio of the reserve for loan losses to loans receivable was 1.18% and 1.20% at December 31, 2005 and 2004, respectively. The Company did not have any foreclosed real estate properties
at December 31, 2005 or December 31, 2004.
Capitalization and Declaration of Dividend
Both the Company and Cardinal Bank remain “well capitalized” from a regulatory perspective. At December 31, 2005, shareholders’ equity was $147.9 million, a $52.8 million, or 55%, increase from December 31, 2004. Shareholders’ equity was 10.2% and 7.9% of consolidated assets at December 31, 2005 and 2004, respectively. These increases were the result of earnings retained in the Company as well as 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.
The Company’s Board of Directors declared a $0.01 per share cash dividend which is payable on February 15, 2006 to shareholders of record on January 31, 2006.
REGULATORY APPROVAL RECEIVED FOR TRUST OPERATIONS
The Company has received all regulatory approvals necessary to begin trust operations. As previously reported Cardinal Bank will acquire certain fiduciary and other assets and assume the deposit liabilities of a local trust company. This company acts as trustee or custodian for assets in excess of $5 billion. The Company expects that this transaction will close in the first quarter of 2006.
MANAGEMENT COMMENTS
Bernard H. Clineburg, Chairman and Chief Executive Officer of the Company, said, “2005 was the best year in the history of Cardinal. We achieved record earnings during the year, approaching $10 million in net income. Our assets grew by 20%, deposits by 30% and loans by 44%, while we opened 3 branches, acquired Wilson/Bennett Capital Management and raised $39.8 million in capital. We realized our fourteenth consecutive quarter of profitability. Cardinal continues to be one of the largest publicly traded banks headquartered in Northern Virginia, balancing growth with profitability. We are excited about initiating our trust operations and offering a full array of investment and trust solutions for our customers. Customers will now have even greater access to these financial services through our network of 21 conveniently located banking offices in Northern Virginia. In 2006, we plan to continue targeted expansion of our branch network. We have assembled a team of exceptional bankers, adding new talent to deepen our bench strength and market coverage. In June, the company was added to the Russell 2000, 3000 and Microcap indices, among the most recognized in the investment community. Our commitment to improving the value of Cardinal remains paramount in everything we do; and we aspire daily to maximize shareholder value.”
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. In addition, risks and uncertainties related to future trust operations include the ability of the Company to successfully integrate trust operations into the organization.
About Cardinal Financial Corporation: Cardinal Financial Corporation is a financial holding company headquartered in Tysons Corner, Virginia. On December 31, 2005, Cardinal Financial Corporation had assets of $1.45 billion. Through its wholly-owned subsidiary, Cardinal Bank, the Company serves Northern Virginia with 21 conveniently located banking offices in Alexandria, Annandale, Arlington, Clifton, Fairfax, Fairfax City (two offices), 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 nine 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
At December 31, 2005 and December 31, 2004
(Dollars in thousands)
| | (Unaudited)
2005 | | 2004 | | % Change | |
Cash and due from banks | | $ | 16,514 | | $ | 15,205 | | 8.6 | % |
Federal funds sold | | 20,075 | | 8,203 | | 144.7 | % |
| | | | | | | |
Investment securities - available-for-sale | | 178,955 | | 151,554 | | 18.1 | % |
Investment securities - held-to-maturity | | 115,269 | | 137,953 | | -16.4 | % |
Total investment securities | | 294,224 | | 289,507 | | 1.6 | % |
| | | | | | | |
Other investments | | 7,092 | | 8,110 | | -12.6 | % |
Loans held for sale, net | | 361,668 | | 365,454 | | -1.0 | % |
| | | | | | | |
Loans receivable, net of fees | | 705,644 | | 489,896 | | 44.0 | % |
Allowance for loan losses | | (8,301 | ) | (5,878 | ) | 41.2 | % |
Loans receivable, net | | 697,343 | | 484,018 | | 44.1 | % |
| | | | | | | |
Premises and equipment, net | | 18,201 | | 15,531 | | 17.2 | % |
Goodwill and intangibles, net | | 20,502 | | 14,694 | | 39.5 | % |
Other assets | | 16,668 | | 10,854 | | 53.6 | % |
| | | | | | | |
TOTAL ASSETS | | $ | 1,452,287 | | $ | 1,211,576 | | 19.9 | % |
| | | | | | | |
Non-interest bearing deposits | | $ | 114,915 | | $ | 105,424 | | 9.0 | % |
Interest bearing deposits | | 954,957 | | 718,786 | | 32.9 | % |
Total deposits | | 1,069,872 | | 824,210 | | 29.8 | % |
| | | | | | | |
Other borrowed funds | | 155,421 | | 201,085 | | -22.7 | % |
Warehouse financing | | 4 | | 30,245 | | -100.0 | % |
Mortgage funding checks | | 41,635 | | 46,392 | | -10.3 | % |
Escrow liabilities | | 11,013 | | 3,020 | | 264.7 | % |
Other liabilities | | 26,463 | | 11,519 | | 129.7 | % |
| | | | | | | |
Shareholders’ equity | | 147,879 | | 95,105 | | 55.5 | % |
| | | | | | | |
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY | | $ | 1,452,287 | | $ | 1,211,576 | | 19.9 | % |
Cardinal Financial Corporation and Subsidiaries
Summary Income Statements
For the Three Months and Years Ended December 31, 2005 and 2004
(Dollars in thousands, except share and per share data)
| | For the Three Months Ended
December 31, | | | | For the Years Ended
December 31, | | | |
| | 2005 | | 2004 | | % Change | | 2005 | | 2004 | | % Change | |
| | (Unaudited) | | | | (Unaudited) | | | | | |
Net interest income | | $ | 10,425 | | $ | 7,528 | | 38.5 | % | $ | 37,483 | | $ | 24,553 | | 52.7 | % |
Provision for loan losses | | (587 | ) | (709 | ) | -17.2 | % | (2,456 | ) | (1,626 | ) | 51.0 | % |
Net interest income after provision for loan losses | | 9,838 | | 6,819 | | 44.3 | % | 35,027 | | 22,927 | | 52.8 | % |
| | | | | | | | | | | | | |
Service charges on deposit accounts | | 377 | | 291 | | 29.6 | % | 1,334 | | 1,089 | | 22.5 | % |
Loan service charges | | 686 | | 406 | | 69.0 | % | 2,701 | | 958 | | 181.9 | % |
Investment fee income | | 470 | | 158 | | 197.5 | % | 1,417 | | 657 | | 115.7 | % |
Net gain on sales of loans | | 3,607 | | 3,289 | | 9.7 | % | 15,975 | | 4,696 | | 240.2 | % |
Net realized gain on investment securities available-for-sale | | — | | — | | 0.0 | % | 33 | | 245 | | -86.5 | % |
Management fee income | | 571 | | 947 | | -39.7 | % | 3,032 | | 1,749 | | 73.4 | % |
Other non-interest income | | 152 | | 6 | | 2433.3 | % | 177 | | 15 | | 1080.0 | % |
Total non-interest income | | 5,863 | | 5,097 | | 15.0 | % | 24,669 | | 9,409 | | 162.2 | % |
| | | | | | | | | | | | | |
Net interest income & non-interest income | | 15,701 | | 11,916 | | 31.8 | % | 59,696 | | 32,336 | | 84.6 | % |
| | | | | | | | | | | | | |
Salaries and benefits | | 5,614 | | 4,365 | | 28.6 | % | 22,480 | | 13,354 | | 68.3 | % |
Occupancy | | 1,160 | | 1,004 | | 15.5 | % | 4,293 | | 2,897 | | 48.2 | % |
Depreciation | | 722 | | 623 | | 15.9 | % | 2,822 | | 1,838 | | 53.5 | % |
Data processing | | 332 | | 322 | | 3.1 | % | 1,559 | | 969 | | 60.9 | % |
Telecommunications | | 276 | | 207 | | 33.3 | % | 1,189 | | 611 | | 94.6 | % |
Other operating expense | | 2,928 | | 2,800 | | 4.6 | % | 12,310 | | 7,485 | | 64.5 | % |
Total non-interest expense | | 11,032 | | 9,321 | | 18.4 | % | 44,653 | | 27,154 | | 64.4 | % |
Net income before income taxes | | 4,669 | | 2,595 | | 79.9 | % | 15,043 | | 5,182 | | 190.3 | % |
Provision for income taxes | | 1,682 | | 863 | | 94.9 | % | 5,167 | | 1,713 | | 201.6 | % |
NET INCOME | | $ | 2,987 | | $ | 1,732 | | 72.5 | % | $ | 9,876 | | $ | 3,469 | | 184.7 | % |
| | | | | | | | | | | | | |
Earnings per common share, basic | | $ | 0.12 | | $ | 0.09 | | 36.2 | % | $ | 0.45 | | $ | 0.19 | | 135.2 | % |
| | | | | | | | | | | | | | | | | |
Earnings per common share, diluted | | $ | 0.12 | | $ | 0.09 | | 33.7 | % | $ | 0.44 | | $ | 0.19 | | 131.5 | % |
| | | | | | | | | | | | | | | | | |
Weighted-average common shares outstanding - basic | | 24,359,493 | | 18,450,064 | | 32.0 | % | 22,104,122 | | 18,448,007 | | 19.8 | % |
| | | | | | | | | | | | | |
Weighted-average common shares outstanding - diluted | | 24,832,246 | | 18,754,866 | | 32.4 | % | 22,453,718 | | 18,704,687 | | 20.0 | % |
Cardinal Financial Corporation and Subsidiaries
Selected Financial Information
(Dollars in thousands, except per share data and ratios)
| | For the Three Months Ended
December 31, | | For the Years Ended
December 31, | |
| | 2005 | | 2004 | | 2005 | | 2004 | |
| | (Unaudited) | | (Unaudited) | | (Unaudited) | | | |
Income Statements: | | | | | | | | | |
Interest income | | $ | 19,616 | | $ | 12,952 | | $ | 67,374 | | $ | 40,522 | |
Interest expense | | 9,191 | | 5,424 | | 29,891 | | 15,969 | |
Net interest income | | 10,425 | | 7,528 | | 37,483 | | 24,553 | |
Provision for loan losses | | 587 | | 709 | | 2,456 | | 1,626 | |
Net interest income after provision for loan losses | | 9,838 | | 6,819 | | 35,027 | | 22,927 | |
Non-interest income | | 5,863 | | 5,097 | | 24,669 | | 9,409 | |
Non-interest expense | | 11,032 | | 9,321 | | 44,653 | | 27,154 | |
Net income before income taxes | | 4,669 | | 2,595 | | 15,043 | | 5,182 | |
Provision for income taxes | | 1,682 | | 863 | | 5,167 | | 1,713 | |
Net income | | $ | 2,987 | | $ | 1,732 | | $ | 9,876 | | $ | 3,469 | |
| | | | | | December 31, 2005 | | December 31, 2004 | |
| | | | | | (Unaudited) | | | |
Balance Sheet Data: | | | | | | | | | |
Total assets | | | | | | $ | 1,452,287 | | $ | 1,211,576 | |
Loans receivable, net of fees | | | | | | 705,644 | | 489,896 | |
Allowance for loan losses | | | | | | (8,301 | ) | (5,878 | ) |
Loans held for sale | | | | | | 361,668 | | 365,454 | |
Total investment securities | | | | | | 294,224 | | 289,507 | |
Total deposits | | | | | | 1,069,872 | | 824,210 | |
Other borrowed funds | | | | | | 155,421 | | 201,085 | |
Total shareholders’ equity | | | | | | 147,879 | | 95,105 | |
| | | | | | | | | |
Common shares outstanding | | | | | | 24,363 | | 18,463 | |
| | | | | | | | | | | |
| | For the Three Months Ended December 31, | | For the Years Ended December 31, | |
| | 2005 | | 2004 | | 2005 | | 2004 | |
Selected Average Balances (unaudited): | | | | | | | | | |
Total assets | | $ | 1,428,301 | | $ | 1,166,392 | | $ | 1,332,168 | | $ | 936,297 | |
Loans receivable, net of fees | | 668,198 | | 454,117 | | 587,514 | | 391,425 | |
Allowance for loan losses | | (7,956 | ) | (5,339 | ) | (6,974 | ) | (4,759 | ) |
Loans held for sale | | 333,938 | | 353,224 | | 372,866 | | 181,700 | |
Total investment securities | | 293,929 | | 301,096 | | 287,127 | | 313,027 | |
Interest earning assets | | 1,384,648 | | 1,123,418 | | 1,285,757 | | 902,764 | |
Total deposits | | 1,091,516 | | 812,589 | | 973,713 | | 652,721 | |
Other borrowed funds | | 165,020 | | 182,222 | | 207,747 | | 139,637 | |
Total shareholders’ equity | | 148,692 | | 96,607 | | 128,728 | | 94,111 | |
Weighted Average: | | | | | | | | | |
Common shares outstanding - basic | | 24,359 | | 18,450 | | 22,104 | | 18,448 | |
Common shares outstanding - diluted | | 24,832 | | 18,755 | | 22,454 | | 18,705 | |
| | | | | | | | | |
Per Common Share Data (unaudited, except year ended December 31, 2004): | | | | | | | | | |
Basic net income | | $ | 0.12 | | $ | 0.09 | | $ | 0.45 | | $ | 0.19 | |
Fully diluted net income | | 0.12 | | 0.09 | | 0.44 | | 0.19 | |
Book value | | | | | | 6.07 | | 5.15 | |
Tangible book value | | | | | | 5.23 | | 4.36 | |
| | | | | | | | | |
Performance Ratios (unaudited): | | | | | | | | | |
Return on average assets | | 0.84 | % | 0.59 | % | 0.74 | % | 0.37 | % |
Return on average equity | | 8.04 | % | 7.17 | % | 7.67 | % | 3.69 | % |
Net interest margin (1) | | 3.01 | % | 2.68 | % | 2.92 | % | 2.72 | % |
Efficiency ratio (2) | | 67.73 | % | 78.22 | % | 71.84 | % | 83.97 | % |
Non-interest income to average assets | | 1.64 | % | 1.75 | % | 1.85 | % | 1.00 | % |
Non-interest expense to average assets | | 3.09 | % | 3.20 | % | 3.35 | % | 2.90 | % |
| | | | | | | | | |
Asset Quality Data (unaudited): | | | | | | | | | |
Annualized net charge-offs to average loans receivable, net of fees | | | | | | 0.01 | % | 0.02 | % |
Non-performing loans to loans receivable, net of fees | | | | | | 0.03 | % | 0.11 | % |
Non-performing loans to total assets | | | | | | 0.01 | % | 0.05 | % |
Allowance for loan losses to loans receivable, net of fees | | | | | | 1.18 | % | 1.20 | % |
Allowance for loan losses to nonperforming loans | | | | | | 3879.0 | % | 1074.6 | % |
| | | | | | | | | |
Capital Ratios (unaudited): | | | | | | | | | |
Tier 1 risk-based capital | | | | | | 14.83 | % | 12.65 | % |
Total risk-based capital | | | | | | 15.65 | % | 13.40 | % |
Leverage capital ratio | | | | | | 10.71 | % | 8.83 | % |
(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
For the Three Months and Years Ended December 31, 2005 and 2004
(Dollars in thousands)
(Unaudited)
| | For the Three Months Ended | | For the Years Ended | |
| | December 31, 2005 | | December 31, 2004 | | December 31, 2005 | | December 31, 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 | | $ | 668,198 | | 6.27 | % | $ | 454,117 | | 5.68 | % | $ | 587,514 | | 6.03 | % | $ | 391,425 | | 5.59 | % |
Loans held for sale | | 333,938 | | 6.30 | % | 353,224 | | 4.02 | % | 372,866 | | 5.20 | % | 181,700 | | 3.75 | % |
Investment securities - available-for-sale | | 175,636 | | 4.14 | % | 157,968 | | 3.72 | % | 159,720 | | 3.88 | % | 161,741 | | 3.60 | % |
Investment securities - held-to-maturity | | 118,293 | | 3.91 | % | 143,128 | | 3.81 | % | 127,407 | | 3.86 | % | 151,286 | | 3.72 | % |
Other investments | | 6,650 | | 4.68 | % | 8,148 | | 4.38 | % | 6,269 | | 4.16 | % | 6,139 | | 4.10 | % |
Federal funds sold | | 81,933 | | 4.01 | % | 6,833 | | 1.99 | % | 31,981 | | 3.67 | % | 10,473 | | 1.24 | % |
Total interest-earning assets | | 1,384,648 | | 5.67 | % | 1,123,418 | | 4.61 | % | 1,285,757 | | 5.24 | % | 902,764 | | 4.49 | % |
| | | | | | | | | | | | | | | | | |
Non-interest earning assets: | | | | | | | | | | | | | | | | | |
Cash and due from banks | | (17 | ) | | | 7,933 | | | | 6,657 | | | | 11,015 | | | |
Premises and equipment, net | | 17,913 | | | | 15,209 | | | | 17,446 | | | | 11,229 | | | |
Goodwill and intangibles, net | | 20,589 | | | | 14,722 | | | | 18,363 | | | | 7,515 | | | |
Accrued interest and other assets | | 13,124 | | | | 10,449 | | | | 10,919 | | | | 8,533 | | | |
Allowance for loan losses | | (7,956 | ) | | | (5,339 | ) | | | (6,974 | ) | | | (4,759 | ) | | |
| | | | | | | | | | | | | | | | | |
TOTAL ASSETS | | $ | 1,428,301 | | | | $ | 1,166,392 | | | | $ | 1,332,168 | | | | $ | 936,297 | | | |
| | | | | | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | |
Interest-bearing deposits | | $ | 977,170 | | 3.21 | % | $ | 704,788 | | 2.39 | % | $ | 859,900 | | 2.90 | % | $ | 563,607 | | 2.25 | % |
Other borrowed funds | | 165,020 | | 3.08 | % | 220,043 | | 2.12 | % | 207,747 | | 2.40 | % | 171,618 | | 1.91 | % |
Total interest-bearing liabilities | | 1,142,190 | | 3.21 | % | 924,831 | | 2.33 | % | 1,067,647 | | 2.90 | % | 735,225 | | 2.17 | % |
| | | | | | | | | | | | | | | | | |
Noninterest-bearing liabilities: | | | | | | | | | | | | | | | | | |
Noninterest-bearing deposits | | 114,346 | | | | 107,801 | | | | 113,813 | | | | 89,114 | | | |
Other liabilities | | 23,073 | | | | 37,153 | | | | 21,980 | | | | 17,847 | | | |
| | | | | | | | | | | | | | | | | |
Shareholders’ equity | | 148,692 | | | | 96,607 | | | | 128,728 | | | | 94,111 | | | |
| | | | | | | | | | | | | | | | | |
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY | | $ | 1,428,301 | | | | $ | 1,166,392 | | | | $ | 1,332,168 | | | | $ | 936,297 | | | |
| | | | | | | | | | | | | | | | | |
NET INTEREST MARGIN | | | | 3.01 | % | | | 2.68 | % | | | 2.92 | % | | | 2.72 | % |
Cardinal Financial Corporation and Subsidiaries
Segment Reporting at and for the Three and Twelve Months Ended December 31, 2005 and 2004
(Dollars in thousands)
At and for the Three Months Ended December 31, 2005 (unaudited):
| | Commercial | | Mortgage | | Investment | | Intersegment | | | | | |
| | Banking | | Banking | | Services | | Elimination | | Other | | Consolidated | |
Net interest income | | $ | 9,192 | | $ | 1,481 | | $ | — | | $ | — | | $ | (248 | ) | $ | 10,425 | |
Provision for loan losses | | 587 | | — | | — | | — | | — | | 587 | |
Non-interest income | | 638 | | 4,746 | | 420 | | — | | 59 | | 5,863 | |
Non-interest expense | | 5,795 | | 4,109 | | 424 | | — | | 704 | | 11,032 | |
Provision for income taxes | | 1,274 | | 721 | | (21 | ) | — | | (292 | ) | 1,682 | |
Net income (loss) | | $ | 2,174 | | $ | 1,397 | | $ | 17 | | $ | — | | $ | (601 | ) | $ | 2,987 | |
| | | | | | | | | | | | | |
Total Assets | | $ | 1,387,504 | | $ | 376,618 | | $ | 6,882 | | $ | (479,573 | ) | $ | 160,856 | | $ | 1,452,287 | |
At and for the Three Months Ended December 31, 2004 (unaudited):
| | Commercial | | Mortgage | | Investment | | Intersegment | | | | | |
| | Banking | | Banking | | Services | | Elimination | | Other | | Consolidated | |
Net interest income | | $ | 6,261 | | $ | 1,474 | | $ | — | | $ | — | | $ | (207 | ) | $ | 7,528 | |
Provision for loan losses | | 709 | | — | | — | | — | | — | | 709 | |
Non-interest income | | 374 | | 4,562 | | 158 | | — | | 3 | | 5,097 | |
Non-interest expense | | 5,048 | | 3,646 | | 187 | | — | | 440 | | 9,321 | |
Provision for income taxes | | 316 | | 773 | | (8 | ) | — | | (218 | ) | 863 | |
Net income (loss) | | $ | 562 | | $ | 1,617 | | $ | (21 | ) | $ | — | | $ | (426 | ) | $ | 1,732 | |
| | | | | | | | | | | | | |
Total Assets | | $ | 1,123,868 | | $ | 392,241 | | $ | 685 | | $ | (421,203 | ) | $ | 115,985 | | $ | 1,211,576 | |
At and for the Twelve Months Ended December 31, 2005 (unaudited):
| | Commercial | | Mortgage | | Investment | | Intersegment | | | | | |
| | Banking | | Banking | | Services | | Elimination | | Other | | Consolidated | |
Net interest income | | $ | 32,171 | | $ | 6,203 | | $ | — | | $ | — | | $ | (891 | ) | $ | 37,483 | |
Provision for loan losses | | 2,456 | | — | | — | | — | | — | | 2,456 | |
Non-interest income | | 1,964 | | 21,255 | | 1,367 | | — | | 83 | | 24,669 | |
Non-interest expense | | 23,802 | | 17,332 | | 1,422 | | — | | 2,097 | | 44,653 | |
Provision for income taxes | | 2,764 | | 3,413 | | (56 | ) | — | | (954 | ) | 5,167 | |
Net income (loss) | | $ | 5,113 | | $ | 6,713 | | $ | 1 | | $ | — | | $ | (1,951 | ) | $ | 9,876 | |
| | | | | | | | | | | | | |
Total Assets | | $ | 1,387,504 | | $ | 376,618 | | $ | 6,882 | | $ | (479,573 | ) | $ | 160,856 | | $ | 1,452,287 | |
At and for the Twelve Months Ended December 31, 2004:
| | Commercial | | Mortgage | | Investment | | Intersegment | | | | | |
| | Banking | | Banking | | Services | | Elimination | | Other | | Consolidated | |
Net interest income | | $ | 21,753 | | $ | 3,057 | | $ | — | | $ | — | | $ | (257 | ) | $ | 24,553 | |
Provision for loan losses | | 1,626 | | — | | — | | — | | — | | 1,626 | |
Non-interest income | | 1,804 | | 6,953 | | 645 | | — | | 7 | | 9,409 | |
Non-interest expense | | 17,065 | | 7,889 | | 800 | | — | | 1,400 | | 27,154 | |
Provision for income taxes | | 1,628 | | 698 | | (52 | ) | — | | (561 | ) | 1,713 | |
Net income (loss) | | $ | 3,238 | | $ | 1,423 | | $ | (103 | ) | $ | — | | $ | (1,089 | ) | $ | 3,469 | |
| | | | | | | | | | | | | |
Total Assets | | $ | 1,123,868 | | $ | 392,241 | | $ | 685 | | $ | (421,203 | ) | $ | 115,985 | | $ | 1,211,576 | |
