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Cardinal Financial Corp. Reports Operating Results (10-Q)

August 06, 2010 | About:
10qk

10qk

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Cardinal Financial Corp. (CFNL) filed Quarterly Report for the period ended 2010-06-30.

Cardinal Financial Corp. has a market cap of $290.3 million; its shares were traded at around $10.11 with a P/E ratio of 20.3 and P/S ratio of 2.6. The dividend yield of Cardinal Financial Corp. stocks is 0.8%. Cardinal Financial Corp. had an annual average earning growth of 15.2% over the past 5 years.CFNL is in the portfolios of Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

For the three months ended June 30, 2010 and 2009, we reported net income of $4.7 million and $2.1 million, respectively. Net interest income after the provision for loan losses increased $4.0 million to $14.4 million for the three months ended June 30, 2010 compared to $10.5 million for the three months ended June 30, 2009. Despite an increase in our provision for loan losses, the increase in net interest income after provision for loan losses was due to an increase in our net interest income of $5.2 million to $17.1 million for the three months ended

June 30, 2010. Provision for loan losses for the three months ended June 30, 2010 was $2.7 million, an increase of $1.2 million, compared to $1.5 million for the same period of 2009. Noninterest income for the three months ended June 30, 2010 and 2009 was $6.8 million and $6.3 million, respectively, an increase of $596,000. Realized and unrealized gains on mortgage banking activities increased $338,000 for the three months ended June 30, 2010 as compared to the three months ended June 30, 2009. In addition, income from managed companies increased $461,000 to $844,000 for the three months ended June 30, 2010 compared to $383,000 for the same three month period of 2009. For the three months ended June 30, 2010, noninterest expense increased to $14.2 million, compared to $13.7 million for the same period of 2009. The increase in noninterest expense is attributable to increases in salary and benefits expense as we have added personnel in our wealth management and mortgage banking operations.

Net income for the six months ended June 30, 2010 and 2009 was $8.5 million and $4.3 million, respectively, an increase of $4.2 million, or 97%. Net interest income after provision for loan losses for the six months ended June 30, 2010 increased $7.4 million to $27.3 million, compared to $19.9 million for the same six month period of 2009. The increase in net interest income after provision for loan losses is directly related to our increase in net interest income for the periods presented, despite an increase in provision for loan losses. Net interest income increased to $32.4 million for the six months ended June 30, 2010, compared to $22.6 million for the six months ended June 30, 2009. Provision for loan losses for the six months ended June 30, 2010 and 2009 were $5.1 million and $2.7 million, respectively, an increase of $2.4 million. Noninterest income increased $553,000 to $12.6 million for the six months ended June 30, 2010, compared to $12.0 million for the same period of 2009. The increase in noninterest income is primarily related to an increase in fee income from our managed companies due to increased loan origination activity from this business line. Noninterest expense was $27.2 million for the six months ended June 30, 2010, an increase of $1.4 million compared to $25.7 million for the six months ended June 30, 2009.

$1.2 million for the three months ended June 30, 2009. Net interest income increased $5.3 million to $16.7 million for the three months ended June 30, 2010, compared to $11.4 million for the same period of 2009. Provision for loan losses increased $1.3 million to $2.7 million for the three months ended June 30, 2010 compared to $1.4 million for the same period of 2009. The increase in provision expense is related to current economic and market conditions and an increase in loan charge-offs during 2010. Noninterest income increased to $1.1 million for the three months ended June 30, 2010 compared to $820,000 for the three months ended June 30, 2009. During the second quarter of 2010, gains of $269,000 were recorded on sales of investment securities available-for-sale, compared to none for the three months ended June 30, 2009. Noninterest expense was $9.6 million for the three months ended June 30, 2010, compared to $9.2 million for the same period of 2009. The increase in noninterest expense for the second quarter of 2010 as compared to the same period of 2009 is primarily due to expenses related to our core system conversion, branch expansion and additions to our staffing levels at the Bank.

For the six months ended June 30, 2010, net income attributable to the commercial banking segment was $7.3 million, and increase of $4.4 million, from $2.9 million for the same six month period of 2009. The increase in net income is attributable to the increase in our net interest income for the periods presented. Net interest income increased $10.2 million to $31.7 million for the six month ended June 30, 2010, compared to $21.5 million for the six months ended June 30, 2009. Provision for loan losses increased $2.5 million to $5.1 million for the six months ended June 30, 2010, again as a result of the current economic and market conditions and these impacts on our borrowers. Noninterest income for the six months ended June 30, 2010 and 2009 was $2.1 million and $2.2 million, respectively. Noninterest expense increased to $18.0 million from $17.2 million for the six months ended June 30, 2010 compared to the same period of 2009.

Specifically, interest income on loans receivable, increased $2.1 million for the three months ended June 30, 2010 compared to the same three month period of 2009. For the six months ended June 30, 2010, interest income on loans receivable increased $4.4 million as compared to the six months ended June 30, 2009. The increase in interest income on loans receivable is a result of an increase in the volume of our loans receivable portfolio. Interest income on loans held for sale decreased $239,000 to $2.0 million for the three months ended June 30, 2010, a direct result of a period-to-period decrease in loan originations in our held for sale portfolio. For the six months ended June 30, 2010, interest income from loans held for sale decreased $759,000 to $3.3 million compared to $4.0 million for the six months ended June 30, 2009.

Read the The complete Report

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10qk
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