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

November 05, 2010 | About:
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10qk

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Cardinal Financial Corp. (CFNL) filed Quarterly Report for the period ended 2010-09-30.

Cardinal Financial Corp. has a market cap of $307.2 million; its shares were traded at around $10.58 with a P/E ratio of 17.7 and P/S ratio of 2.8. 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.
This is the annual revenues and earnings per share of CFNL over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of CFNL.


Highlight of Business Operations:

For the three months ended September 30, 2010 and 2009, we reported net income of $5.9 million and $2.6 million, respectively, an increase of $3.3 million, or 127%. Net interest income after the provision for loan losses increased $3.6 million to $14.7 million for the three months ended September 30, 2010 compared to $11.0 million for the three months ended September 30, 2009. Provision for loan losses for the three months ended September 30, 2010 was $3.5 million, an increase of $1.5 million, compared to $2.1 million for the same period of 2009. Despite the 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 $5.1 million to $18.2 million for the three months ended September 30, 2010. Noninterest income for the three months ended September 30, 2010 and 2009 was $9.3 million and $5.7 million, respectively, an increase of $3.6 million. Realized and unrealized gains on mortgage banking activities increased $2.5 million for the three months ended September 30, 2010 as compared to the three months ended September 30, 2009. In addition, income from managed companies increased $702,000 to

Net income for the nine months ended September 30, 2010 and 2009 was $14.4 million and $6.9 million, respectively, an increase of $7.5 million, or 108%. Net interest income after provision for loan losses for the nine months ended September 30, 2010 increased $11.0 million to $42.0 million, compared to $30.9 million for the same nine 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 $50.6 million for the nine months ended September 30, 2010, compared to $35.7 million for the nine months ended September 30, 2009. Provision for loan losses for the nine months ended September 30, 2010 and 2009 was $8.6 million and $4.8 million, respectively, an increase of $3.8 million. Noninterest income increased $4.2 million to $21.9 million for the nine months ended September 30, 2010, compared to $17.7 million for the same period of 2009. The increase in noninterest income is primarily related to an increase in realized and unrealized gains on mortgage banking activities and associated management fee income due to increased loan origination activity from this business line. Noninterest expense was $42.6 million for the nine months ended September 30, 2010, an increase of $3.8 million compared to $38.7 million for the nine months ended September 30, 2009.

$3.5 million for the three months ended September 30, 2010 compared to $2.1 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 and nonperforming loans during 2010. Noninterest income increased to $1.0 million for the three months ended September 30, 2010 compared to $917,000 for the three months ended September 30, 2009. During the third quarter of 2010, gains of $193,000 were recorded on sales of investment securities available-for-sale, compared to $73,000 for the three months ended September 30, 2009. Noninterest expense was $10.1 million for the three months ended September 30, 2010, compared to $8.3 million for the same period of 2009. The increase in noninterest expense for the third 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 business development staff at the Bank.

For the nine months ended September 30, 2010, net income attributable to the commercial banking segment was $11.0 million, and an increase of $5.9 million, from $5.1 million for the same nine 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 $15.3 million to $49.5 million for the nine months ended September 30, 2010, compared to $34.2 million for the nine months ended September 30, 2009. Provision for loan losses increased $4.0 million to $8.6 million for the nine months ended September 30, 2010, again as a result of the current economic and market conditions and these impacts on our borrowers. Noninterest income for the nine months ended September 30, 2010 and 2009 was $3.2 million and $3.1 million, respectively. Noninterest expense increased to $28.1 million from $25.5 million for the nine months ended September 30, 2010 compared to the same period of 2009.

Net interest income is our primary source of revenue, representing the difference between interest and fees earned on interest-earning assets and the interest paid on deposits and other interest-bearing liabilities. The level of net interest income is impacted primarily by variations in the volume and mix of these assets and liabilities, as well as changes in interest rates. Net interest income for the three months ended September 30, 2010 and 2009 was $18.2 million and $13.1 million, respectively, a period-to-period increase of $5.1 million, or 39%. For the nine months ended September 30, 2010, our net interest income was $50.6 million, compared to $35.7 million for the same period of 2009, an increase of $14.9 million, or 42%. The net yields on our assets

Specifically, interest income on loans receivable, increased $2.1 million for the three months ended September 30, 2010 compared to the same three month period of 2009. For the nine months ended September 30, 2010, interest income on loans receivable increased $6.5 million as compared to the nine months ended September 30, 2009. The increase in interest income on loans receivable is primarily a result of an increase in the volume of our loans receivable portfolio. Interest income on loans held for sale increased $1.2 million to $2.8 million for the three months ended September 30, 2010, a direct result of a period-to-period increase in mortgage loan originations in our held for sale portfolio. For the nine months ended September 30, 2010, interest income from loans held for sale increased $419,000 to $6.1 million compared to $5.7 million for the nine months ended September 30, 2009.

Read the The complete Report

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