Cardinal Announces Second Quarter Earnings, Strong Loan Growth, Pristine Asset Quality

Cardinal Financial Corporation (NASDAQ: CFNL) (the “Company”) today announced quarterly earnings of $9.8 million, or $0.32 per diluted share, for the period ended June 30, 2013. For the six month year to date period, earnings were $17.0 million, or $0.55 per diluted share. This compares to earnings of $10.2 million, or $0.34 per diluted share, and $17.8 million, or $0.59 per diluted share, for the comparable three and six month periods of 2012. Return on average assets was 1.42% for the current quarter versus 1.59% for the year ago quarter, while return on average equity was 12.13% and 14.68% for the current and year ago quarter, respectively.

Selected Highlights
  • Commercial banking segment earnings increased 31% to $8.4 million for the quarter from $6.5 million a year ago, and increased 44% to $17.5 million from $12.2 for the comparable year to date periods ended June 30, 2013 and 2012, respectively.
  • During the most recent quarter, loans held for investment grew at an annual rate of 17%, or $75 million, to $1.86 billion.
  • Asset quality remains excellent. Nonperforming loans decreased to 0.10% of total assets, and the Company had net loan recoveries of 0.01% of average loans outstanding year to date. The Company continued to have $0 other real estate owned at June 30, 2013, and non-accruing loans decreased to only $2.9 million. The Company had no other past-due loans over 90 days.
  • Total deposits grew to $2.10 billion, an increase of 6% compared to June 30, 2012. Noninterest bearing deposit account balances increased over $100 million or 34% year over year.
  • At June 30, 2013, total assets of the Company were $2.90 billion, an increase of 7% from total assets of $2.71 billion at June 30, 2012.
  • Mortgage loan applications rose to a record $1.7 billion for the current quarter, or 34% over the second quarter of last year, although refinance volume dropped to 34% of total applications from 48% for the previous quarter and from 57% for the year ago quarter. In the second quarter of 2013, purchase money loan closings increased $400 million, or 95%, from the first quarter of 2013.
  • All capital ratios exceed the requirements of banking regulators to be considered well-capitalized. Tangible common equity capital (TCE) as a percentage of total assets was 10.35% at June 30, 2013.


Bernard H. Clineburg, Chairman and Chief Executive Officer of the Company, said:

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