Exhibit 99.1
![](https://capedge.com/proxy/8-K/0001104659-17-022910/g22872mm01i001.jpg)
NEWS RELEASE
FOR IMMEDIATE RELEASE
Tysons Corner, Virginia
April 11, 2017
CARDINAL ANNOUNCES Q1 2017 EARNINGS
Cardinal Financial Corporation (NASDAQ: CFNL) (the “Company”) today reported earnings of $12.4 million for the three month period ended March 31, 2017. This compares to $13.1 million for the three month period ended March 31, 2016. Diluted earnings per share were $0.36 and $0.39 for these same time periods respectively.
Other Selected Highlights
· Total assets of the Company were $4.3 billion, increasing 5.5% from March 31, 2016.
· Loans held for investment were $3.3 billion, increasing 6.9% from a year ago and 4.2% annualized from December 31, 2016.
· Loans held for sale were $296 million versus $365 million a year ago.
· Total deposits increased 8.8%, to $3.4 billion from $3.1 billion at March 31, 2017 and 2016, respectively.
· Non-interest bearing demand deposit accounts increased 10.8% over the past year, to $762 million.
· The Company’s net interest margin was 3.30% for the quarter ended March 31, 2017.
· The Company had nonperforming loans of 0.14% of total assets.
· During the quarter, George Mason Mortgage had $625 million loan closings and originated over $1.20 billion applications. The gain on sale margin was 3.03%.
Cardinal’s shareholders approved the merger with United Bankshares, Inc. (“United”) (NASDAQ: UBSI) during a special shareholder meeting on April 7, 2017, which followed
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United’s obtaining regulatory approval of the merger by the Board of Governors of the Federal Reserve System and the Virginia Bureau of Financial Institutions. The companies expect to complete the transaction on April 21, 2017.
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 and operational performance, cost savings, credit quality 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.
Risk and uncertainties related to the pending merger with United include, among others, that: the businesses of United and Cardinal may not be combined successfully, or such combination may take longer, be more difficult, time-consuming or costly to accomplish than expected; the expected growth opportunities or cost savings from the merger may not be fully realized or may take longer to realize than expected; deposit attrition, operating costs, customer losses and business disruption following the merger, including adverse effects on relationships with employees, may be greater than expected.
For an explanation of some of the additional 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, 2016 and other reports filed with and furnished to the Securities and Exchange Commission. The Company has no obligation and does not undertake to update, revise or correct any of the forward-looking statements after the date of this press release, or after the respective dates on which such statements otherwise are made.
About Cardinal Financial Corporation: Cardinal Financial Corporation, a financial holding company headquartered in Tysons Corner, Virginia with assets of $4.21 billion at December 31, 2016, serves the Washington Metropolitan region through its wholly-owned subsidiary, Cardinal Bank. Cardinal also operates several other subsidiaries: George Mason Mortgage, LLC, a residential mortgage lending company based in Fairfax, Virginia and Cardinal Wealth Services, Inc., a wealth management services company. 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.
Contact:
Bernard H. Clineburg
Executive Chairman
or
Christopher Bergstrom
Chief Executive Officer
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or
Mark A. Wendel,
EVP, Chief Financial Officer
703-584-3400
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Cardinal Financial Corporation and Subsidiaries
Summary Consolidated Statements of Condition
(Dollars in thousands)
(Unaudited)
| | | | | | | | % Change | |
| | | | | | | | Current | | From | |
| | 03/31/17 | | 12/31/16 | | 03/31/16 | | Quarter | | Year Ago | |
| | | | | | | | | | | |
Cash and due from banks | | $ | 24,347 | | $ | 21,104 | | $ | 19,379 | | 15.4 | % | 25.6 | % |
Federal funds sold | | 145,246 | | 76,728 | | 41,489 | | 89.3 | % | 250.1 | % |
| | | | | | | | | | | |
Investment securities available-for-sale | | 380,799 | | 388,191 | | 407,980 | | -1.9 | % | -6.7 | % |
Investment securities held-to-maturity | | 3,510 | | 3,543 | | 3,814 | | -0.9 | % | -8.0 | % |
Investment securities — trading | | 8,935 | | 8,383 | | 6,221 | | 6.6 | % | 43.6 | % |
Total investment securities | | 393,244 | | 400,117 | | 418,015 | | -1.7 | % | -5.9 | % |
| | | | | | | | | | | |
Other investments | | 16,429 | | 16,420 | | 19,411 | | 0.1 | % | -15.4 | % |
Loans held for sale | | 296,348 | | 297,766 | | 365,489 | | -0.5 | % | -18.9 | % |
| | | | | | | | | | | |
Loans receivable, net of fees: | | | | | | | | | | | |
Commercial and industrial | | 346,171 | | 373,637 | | 363,405 | | -7.4 | % | -4.7 | % |
Real estate - commercial | | 1,867,334 | | 1,685,001 | | 1,555,985 | | 10.8 | % | 20.0 | % |
Real estate - construction | | 472,057 | | 587,089 | | 560,114 | | -19.6 | % | -15.7 | % |
Real estate - residential | | 469,429 | | 468,463 | | 455,952 | | 0.2 | % | 3.0 | % |
Home equity lines | | 155,287 | | 161,135 | | 161,691 | | -3.6 | % | -4.0 | % |
Consumer | | 5,058 | | 5,834 | | 4,831 | | -13.3 | % | 4.7 | % |
Total loans, net of fees | | 3,315,336 | | 3,281,159 | | 3,101,978 | | 1.0 | % | 6.9 | % |
Allowance for loan losses | | (32,299 | ) | (31,767 | ) | (32,407 | ) | 1.7 | % | -0.3 | % |
Loans receivable, net | | 3,283,037 | | 3,249,392 | | 3,069,571 | | 1.0 | % | 7.0 | % |
| | | | | | | | | | | |
Premises and equipment, net | | 22,462 | | 22,736 | | 24,845 | | -1.2 | % | -9.6 | % |
Goodwill and intangibles, net | | 35,855 | | 35,981 | | 36,415 | | -0.4 | % | -1.5 | % |
Bank-owned life insurance | | 33,501 | | 33,388 | | 33,102 | | 0.3 | % | 1.2 | % |
Other assets | | 48,662 | | 56,882 | | 46,829 | | -14.5 | % | 3.9 | % |
| | | | | | | | | | | |
TOTAL ASSETS | | $ | 4,299,131 | | $ | 4,210,514 | | $ | 4,074,545 | | 2.1 | % | 5.5 | % |
| | | | | | | | | | | |
Non-interest bearing deposits | | $ | 761,522 | | $ | 733,475 | | $ | 687,493 | | 3.8 | % | 10.8 | % |
Interest checking | | 451,596 | | 453,863 | | 459,377 | | -0.5 | % | -1.7 | % |
Money markets | | 497,819 | | 466,290 | | 447,565 | | 6.8 | % | 11.2 | % |
Statement savings | | 342,746 | | 346,463 | | 310,055 | | -1.1 | % | 10.5 | % |
Certificates of deposit | | 725,533 | | 738,658 | | 788,756 | | -1.8 | % | -8.0 | % |
Brokered certificates of deposit | | 641,754 | | 543,951 | | 451,781 | | 18.0 | % | 42.0 | % |
Total deposits | | 3,420,970 | | 3,282,700 | | 3,145,027 | | 4.2 | % | 8.8 | % |
| | | | | | | | | | | |
Other borrowed funds | | 357,894 | | 426,671 | | 437,065 | | -16.1 | % | -18.1 | % |
Mortgage funding checks | | 13,643 | | 13,762 | | 28,765 | | -0.9 | % | -52.6 | % |
Escrow liabilities | | 1,227 | | 1,506 | | 2,777 | | -18.5 | % | -55.8 | % |
Other liabilities | | 43,615 | | 33,698 | | 34,366 | | 29.4 | % | 26.9 | % |
| | | | | | | | | | | |
Shareholders’ equity | | 461,782 | | 452,177 | | 426,545 | | 2.1 | % | 8.3 | % |
| | | | | | | | | | | |
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY | | $ | 4,299,131 | | $ | 4,210,514 | | $ | 4,074,545 | | 2.1 | % | 5.5 | % |
Cardinal Financial Corporation and Subsidiaries
Summary Consolidated Income Statements
(In thousands, except share data and per share data)
(Unaudited)
| | For the Three Months Ended | | | |
| | March 31, | | | |
| | 2017 | | 2016 | | % Change | |
| | | | | | | |
Net interest income | | $ | 31,825 | | $ | 30,706 | | 3.6 | % |
Provision for loan losses | | 785 | | 250 | | 214.0 | % |
Net interest income after provision for loan losses | | 31,040 | | 30,456 | | 1.9 | % |
| | | | | | | |
Non-interest income: | | | | | | | |
Service charges on deposit accounts | | 591 | | 551 | | 7.3 | % |
Loan fees | | 334 | | 309 | | 8.1 | % |
Income from bank-owned life insurance | | 113 | | 124 | | -8.9 | % |
Net realized gains (losses) on investment securities | | 67 | | (84 | ) | 179.8 | % |
Other non-interest income | | 176 | | 145 | | 21.4 | % |
Commercial banking & other segment non-interest income | | 1,281 | | 1,045 | | 22.6 | % |
| | | | | | | |
Gains from mortgage banking activities | | 22,408 | | 27,041 | | -17.1 | % |
Less: mortgage loan origination expenses | | (9,925 | ) | (12,902 | ) | -23.1 | % |
Mortgage banking segment non-interest income | | 12,483 | | 14,139 | | -11.7 | % |
| | | | | | | |
Wealth management segment non-interest income | | 93 | | 85 | | 9.4 | % |
Total non-interest income | | 13,857 | | 15,269 | | -9.2 | % |
| | | | | | | |
Net interest income and non-interest income | | 44,897 | | 45,725 | | -1.8 | % |
| | | | | | | |
Salaries and benefits | | 15,088 | | 15,497 | | -2.6 | % |
Occupancy | | 2,735 | | 2,592 | | 5.5 | % |
Depreciation | | 689 | | 844 | | -18.4 | % |
Data processing & communications | | 1,347 | | 1,346 | | 0.1 | % |
Professional fees | | 1,487 | | 1,135 | | 31.0 | % |
FDIC insurance assessment | | 366 | | 516 | | -29.1 | % |
Mortgage loan repurchases and settlements | | — | | 100 | | -100.0 | % |
Merger and acquisition expense | | 112 | | — | | 100.0 | % |
Other operating expense | | 3,924 | | 4,262 | | -7.9 | % |
Total non-interest expense | | 25,748 | | 26,292 | | -2.1 | % |
Income before income taxes | | 19,149 | | 19,433 | | -1.5 | % |
Provision for income taxes | | 6,772 | | 6,366 | | 6.4 | % |
NET INCOME | | $ | 12,377 | | $ | 13,067 | | -5.3 | % |
| | | | | | | |
Earnings per common share - basic | | $ | 0.37 | | $ | 0.40 | | -7.1 | % |
Earnings per common share - diluted | | $ | 0.36 | | $ | 0.39 | | -7.2 | % |
Weighted-average common shares outstanding - basic | | 33,632,302 | | 32,977,970 | | 2.0 | % |
Weighted-average common shares outstanding - diluted | | 34,110,602 | | 33,435,858 | | 2.0 | % |