-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, IDqoQ84CC4nD4nxXZZa6oha/J8hhW/9d1laXfwD910rRhLX9r189pYCk8RFUbGFK dOU8k1e+MIg0QNg+K3bAVQ== 0001022759-96-000001.txt : 19961209 0001022759-96-000001.hdr.sgml : 19961209 ACCESSION NUMBER: 0001022759-96-000001 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961115 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CARDINAL BANKSHARES CORP CENTRAL INDEX KEY: 0001022759 STANDARD INDUSTRIAL CLASSIFICATION: 6022 IRS NUMBER: 541804471 STATE OF INCORPORATION: VA FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-28780 FILM NUMBER: 96666834 BUSINESS ADDRESS: STREET 1: P O BOX 215 CITY: FLOYD STATE: VA ZIP: 24091 BUSINESS PHONE: 5407454191 10QSB 1 U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-QSB (Mark One) X Quarterly Report under Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 1996 or _____Transition Report under Section 13 or 15 (d) of the Securities Exchange Act of 1934 For the transition period from__________________ to __________________. Commission File No. Not yet assigned; This is first filing. CARDINAL BANKSHARES CORPORATION (Exact name of the registrant as specified in its charter) Virginia 54-1804471 (State of Incorporation) (I.R.S. Employer Identification No.) 101 Jacksonville Circle (P. O. Box 215), Floyd VA 24091 (Address of principal executive offices) (540) 745-4191 (Issuer's telephone number, including area code) Check whether the issuer: (1) filed all reports required to be filed by Section 13 or 15 (d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No APPLICABLE ONLY TO CORPORATE ISSUERS State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: The number of shares outstanding of the Issuer's Common Stock, $10 Par Value, as of September 30, 1996 was 465,536. Transitional Small Business Disclosure Format (check one):Yes No X Page 1 of 14. There are no Exhibits CARDINAL BANKSHARES CORPORATION AND SUBSIDIARIES FORM 10-QSB INDEX _____________________________________________________________________________ PART 1. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS The consolidated financial statements of Cardinal Bankshares Corporation (the "Company") are set forth in the following pages. Consolidated Balance Sheets as of September 30, 1996 and December 31,1995........................................................3 Consolidated Statements of Operations for the Nine Months Ended September 30, 1996 and 1995.......................................4 Consolidated Statements of Operations for the Three Months Ended September 30, 1996 and 1995.......................................5 Consolidated Statements of Stockholders' Equity for the Periods Ended September 30, 1996 and 1995...............................6 Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 1996 and 1995.....................................7-8 Notes to Consolidated Financial Statements............................9-11 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.....................................11-13 PART II. OTHER INFORMATION................................................14 All schedules have been omitted because they are inapplicable or the required information is provided in the financial statements, including the notes thereto. 2 CARDINAL BANKSHARES CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets September 30, 1996 and December 31, 1995 ________________________________________________________________________________
September 30, December 31, 1996 1995 ____________ ____________ (Unaudited) (Note) ASSETS Cash and due from banks $ 2,179,052 $ 1,907,215 Federal funds sold 2,050,000 1,750,000 Investment securities available for sale 26,703,179 31,387,218 Investment securities held to maturity; market value of $12,844,915 in 1996 and $12,702,338 in 1995 12,932,851 12,610,486 Loans, net of allowance for credit losses of $939,944 in 1996 and $1,134,182 in 1995 (Note 2) 82,787,784 78,630,298 Premises and equipment 1,594,429 1,526,303 Accrued income 992,251 1,069,484 Other assets 1,716,344 2,019,981 ___________ ___________ Total assets $130,955,890 $130,900,985 LIABILITIES Demand deposits $ 11,651,933 $ 10,867,355 NOW deposits 7,953,773 8,127,608 Savings deposits 18,453,091 18,750,756 Large denomination time deposits 8,389,418 8,481,053 Other time deposits 69,515,148 70,309,866 ___________ ___________ Total deposits 115,963,363 116,536,638 Accrued interest payable 282,267 252,957 Other liabilities 397,573 479,912 ___________ ___________ Total liabilities 116,643,203 117,269,507 ___________ ___________ Commitments and contingencies (Note 3) STOCKHOLDERS'EQUITY: Common stock, $10 par value, authorized 1996, 5,000,000 shares,1995, 2,000,000;issued 465,536 shares in 1996 and 1995, respectively 4,655,360 4,655,360 Surplus 1,200,000 1,200,000 Retained earnings 8,658,357 7,481,589 Unrealized appreciation (depreciation) on investment securities available for sale, net of income taxes (201,030) 294,529 ___________ ___________ Total stockholders' equity 14,312,687 13,631,478 ___________ ___________ Total liabilities and stockholders' equity $130,955,890 $130,900,985 ___________ ___________
Note: The Consolidated Balance Sheet as of December 31, 1995 has been taken from the audited financial statements of that date. See Notes to Consolidated Financial Statements 3 CARDINAL BANKSHARES CORPORATION AND SUBSIDIARIES Consolidated Statements of Operations For the nine months ended September 30, 1996 and 1995 (Unaudited) ________________________________________________________________________________
Nine Months Ended September 30, ______________ 1996 1995 ____ ____ INTEREST INCOME: Loans and fees on loans $ 5,548,529 $ 5,409,514 Federal funds sold 137,125 264,258 Taxable investment securities 1,626,892 1,503,674 Investment securities exempt from federal tax 348,302 232,274 __________ __________ Total interest income 7,660,848 7,409,720 INTEREST EXPENSE ON DEPOSITS 3,978,776 3,709,333 __________ __________ Net interest income 3,682,072 3,700,387 PROVISION FOR CREDIT LOSSES 250,000 370,000 __________ __________ Net interest income after provision for credit losses 3,432,072 3,330,387 OTHER INCOME: Service charges on deposit accounts 87,527 92,202 Other service charges and fees 8,001 11,840 Securities gains 21,252 4,728 Other income 167,075 47,085 __________ __________ Total other income 283,855 155,855 OTHER EXPENSE: Salaries and employee benefits 1,280,746 1,148,558 Occupancy expense 82,789 113,425 Equipment expense 144,774 143,453 Other expense 570,818 688,012 __________ __________ Total other expense 2,079,127 2,093,448 __________ __________ Income before income taxes 1,636,800 1,392,794 Income tax expense 460,032 384,151 __________ __________ Net income $ 1,176,768 $ 1,008,643 NET INCOME PER SHARE (Note 4) $ 2.53 $ 2.17 /TABLE> See Notes to Consolidated Financial Statements 4 CARDINAL BANKSHARES CORPORATION AND SUBSIDIARIES Consolidated Statements of Operations For the three months ended September 30, 1996 and 1995 (unaudited) ________________________________________________________________________________
Three Months Ended September 30, ____________ 1996 1995 ____ ____ INTEREST INCOME: Loans and fees on loans $ 1,901,159 $ 1,855,711 Federal funds sold 41,184 90,162 Taxable investment securities 535,775 551,480 Investment securities exempt from federal tax 113,357 85,693 ___________ __________ Total interest income 2,591,475 2,583,046 INTEREST EXPENSE ON DEPOSITS 1,319,464 1,333,006 ___________ ___________ Net interest income 1,272,011 1,250,040 PROVISION FOR CREDIT LOSSES 75,000 75,000 ___________ ___________ Net interest income after provision for credit losses 1,197,011 1,175,040 OTHER INCOME: Service charges on deposit accounts 30,216 26,396 Other service charges and fees 3,479 6,527 Securities gains (11,239) 2,355 Other income 46,409 10,222 ___________ ___________ Total other income 68,865 45,500 OTHER EXPENSE: Salaries and employee benefits 431,225 433,575 Occupancy expense 26,733 38,868 Equipment expense 59,178 28,379 Other expense 193,734 206,438 ___________ ___________ Total other expense 710,870 707,260 ___________ ___________ Income before income taxes 555,006 513,280 Income tax expense 153,900 142,422 ___________ __________ Net income $ 401,106 $ 370,858 ___________ ___________ NET INCOME PER SHARE (Note 4) $ 0.86 $ 0.80 ___________ ___________
See Notes to Consolidated Financial Statements 5 CARDINAL BANKSHARES CORPORATION AND SUBSIDIARIES Consolidated Statement of Changes in Stockholders' Equity For the nine months ended September 30, 1996 and September 30, 1995 (Unaudited) ________________________________________________________________________________
UNREALIZED TOTAL APPRECIATION STOCK- COMMON RETAINED (DEPRECIATION) HOLDERS' STOCK SURPLUS EARNINGS SECURITIES EQUITY __________ _______ _________ _____________ ________ January 1, 1995 $1,163,840 $1,200,000 $10,029,100 $(311,538) $12,081,402 Net income 1,008,643 1,008,643 Change in market value of investment securities available for sale, net of income taxes 355,809 355,809 _________ _________ __________ ________ __________ September 30, 1995 $1,163,840 $1,200,000 $11,037,743 $ 44,271 $13,445,854 January 1, 1996 $4,655,360 $1,200,000 $ 7,481,589 $ 294,529 $13,631,478 Net income 1,176,768 1,176,768 Change in market value of investment securities available for sale, net of income taxes (495,559) (495,559) _________ _________ __________ _________ __________ September 30, 1996 $4,655,360 $1,200,000 $ 8,658,357 $(201,030) $14,312,687
See Notes to Consolidated Financial Statements 6 CARDINAL BANKSHARES CORPORATION AND SUBSIDIARIES Consolidated Statements of Cash Flows For the nine months ended September 30, 1996 and 1995 (Unaudited) _______________________________________________________________________________
NINE MONTHS ENDED SEPTEMBER 30, _____________ 1996 1995 ____ ____ CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 1,176,768 $ 1,008,643 Adjustments to reconcile net income to net cash provided by operations: Depreciation and amortization 123,600 153,450 Accretion of discounts on securities, net of amortization of premiums (57,403) (51,539) Amortization of loan fees (44,451) (89,976) Provision for credit losses 250,000 370,000 Deferred income taxes 191,465 10,524 Net realized gains on securities (21,252) (4,728) Net realized gains on sale of other real estate (9,696) (23,055) Deferred compensation & pension expense 47,332 53,576 Changes in assets and liabilities: Accrued income 77,233 (178,794) Other assets 288,523 (364,595) Accrued interest payable 29,310 66,667 Other liabilities (129,671) 192,513 __________ ___________ Net cash provided by operating activities 1,921,758 1,142,686 __________ ___________ CASH FLOWS FROM INVESTING ACTIVITIES: Net (increase) in federal funds sold (300,000) 475,000 Purchases of securities (13,758,292) (19,570,797) Sale of securities 3,264,391 Maturities of securities 14,183,383 10,943,549 Net increase in loans (4,370,651) (394,329) Proceeds from sale of other real estate 96,249 432,744 Purchases of properties and equipment (191,726) (89,068) __________ __________ Net cash used in investing activities (1,076,646) (8,202,901) CASH FLOWS FROM FINANCING ACTIVITIES: Net increase (decrease) in demand, NOW, and savings deposits 313,078 (2,793,661) Net increase (decrease) in time deposits (886,353) 10,154,307 Dividends paid --- --- __________ __________ Net cash provided by financing activities (573,275) 7,360,646 __________ __________ Net increase in cash and cash equivalents 271,837 300,431 CASH AND CASH EQUIVALENTS, BEGINNING 1,907,215 2,211,184 __________ __________ CASH AND CASH EQUIVALENTS, ENDING $ 2,179,052 $ 2,511,615
See Notes to Consolidated Financial Statements 7 CARDINAL BANKSHARES CORPORATION AND SUBSIDIARIES Consolidated Statements of Cash Flows, continued For the nine months ended September 30, 1996 and 1995 (Unaudited) _______________________________________________________________________________
NINE MONTHS ENDED SEPTEMBER 30, _____________ 1996 1995 ____ ____ SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Interest paid $ 3,949,466 $ 3,642,665 __________ __________ Income taxes paid $ 182,964 $ 373,623 __________ __________ SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING ACTIVITIES: Other real estate acquired in settlement of loans $ 7,616 $ 358,800 __________ __________
See Notes to Consolidated Financial Statements 8 CARDINAL BANKSHARES CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements ________________________________________________________________________________ ITEM 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ORGANIZATION NOTE 1. BASIS OF PRESENTATION: Cardinal Bankshares Corporation (the Company) was incorporated as a Virginia corporation on March 12, 1996 to acquire the stock of The Bank of Floyd (the Bank). The Bank was acquired by the Company on July 1, 1996 and will be accounted for using the pooling of interests accounting method. The consolidated financial statements as of September 30, 1996 and for the periods ended September 30, 1996 and 1995 included herein, have been prepared by Cardinal Bankshares Corporation, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the information furnished in the interim consolidated financial statements reflects all adjustments necessary to present fairly the Company's consolidated financial position, results of operations, changes in stockholders' equity and cash flows for such interim periods. Management believes that all interim period adjustments are of a normal recurring nature. These consolidated financial statements should be read in conjunction with the Bank's audited financial statements and the notes thereto as of December 31, 1995, included in the Bank's Annual Report for the fiscal year ended December 31, 1995. The Bank of Floyd and its wholly owned subsidiary, FBC, Inc. are organized and incorporated under the laws of the Commonwealth of Virginia. As a state chartered Federal Reserve member, the Bank is subject to regulation by the Virginia Bureau of Financial Institutions and the Federal Reserve. FBC, Inc.'s assets and operations consist primarily of a minority interest in a title insurance company. The Bank serves the counties of Floyd, Montgomery, and Roanoke, Virginia and the City of Roanoke, Virginia through two banking offices. All significant intercompany accounts and transactions have been elimi- nated in consolidation. Certain prior year amounts have been reclassified to conform to the current year presentation. NOTE 2. ALLOWANCES FOR CREDIT LOSSES The following is an analysis of the allowance for credit losses.
1996 1995 ____ ____ Balance at January 1 $ 1,134,182 $ 1,264,798 Provision charged to operations 250,000 370,000 Recoveries 31,859 17,080 Loans charged off (476,097) (233,912) __________ __________ Balance at September 30 $ 939,944 $ 1,417,966
9 NOTE 2. ALLOWANCES FOR CREDIT LOSSES, CONTINUED Nonperforming loans consist of the following:
SEPTEMBER 30, December 31, 1996 1995 ____________ ___________ Nonaccrual loans $ 441,863 $ 390,907 Loans 90 days or more past due 262,000 57,155 Restructured loans 0 0 __________ __________ Total nonperforming loans $ 703,863 $ 448,062
NOTE 3. COMMITMENTS AND CONTINGENCIES The Bank's exposure to credit loss in the event of nonperformance by the other party for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as for on-balance-sheet instruments. A summary of the Bank's commitments at September 30, 1996 and 1995 is as follows:
1996 1995 ____ ____ Commitments to extend credit $ 5,578,372 $ 6,028,101 Standby letters of credit 176,000 396,500 __________ __________ $ 5,754,372 $ 6,424,601
NOTE 4. EARNINGS PER SHARE Earnings per share are computed on the weighted average common shares out- standing of 465,536 for the nine months ended September 30, 1996. The weighted average common shares outstanding for the nine months ended September 30, 1995 have been restated to reflect a 4 for 1 stock split during 1995 resulting in 465,536 weighted average common shares outstanding for the period. NOTE 5. NET INTEREST INCOME AND AVERAGE BALANCES (THOUSANDS) The following schedule presents condensed average balances and the average rates earned and paid by the Company for the nine months ended September 30, 1996 and September 30, 1995. 10 NOTE 5. NET INTEREST INCOME AND AVERAGE BALANCES (THOUSANDS), CONTINUED
1996 1995 ____ ____ INTEREST INTEREST INCOME/ YIELD/ INCOME/ YIELD/ AVERAGE EXPENSE COST AVERAGE EXPENSE COST _______ _______ _____ _______ _______ _____ Interest earning assets: Loans, net $ 80,151 $ 5,549 9.25% $ 78,713 $ 5,410 9.25% Taxable investment securities 31,420 1,627 6.92 29,315 1,504 6.86 Nontaxable investment securities 9,724 348 4.78 5,877 232 5.28 Federal funds sold and securities purchased with agreements to resell 3,442 137 5.32 5,961 264 5.93 _______ ______ ____ _______ ______ ____ Total interest earning assets $124,737 $ 7,661 8.20% $119,866 $ 7,410 8.26% Interest bearing liabilities: Demand deposits $ 8,201 $ 155 2.52% $ 8,437 $ 171 2.71% Savings deposits 18,617 431 3.09 21,200 487 3.07 Time deposits 78,762 3,393 5.75 73,073 3,051 5.58 _______ ______ ____ _______ ______ ____ Total interest bearing liabilities $105,580 $ 3,979 5.03% $102,710 $ 3,709 4.83% _______ ______ ____ _______ ______ ____ Net interest income $ 3,682 $ 3,701 ______ ______ Net interest differential 3.17% 3.43% ____ ____ Net yield on interest earning assets 3.94% 4.13% ____ ____
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS For the quarter ended September 30, 1996, the Bank earned $401,106 in net income compared to $370,858 for the quarter ended September 30, 1995. The in- crease of $30,248 was due primarily to increases in net interest income and other income. 11 RESULTS OF OPERATIONS, CONTINUED For the nine month period ended September 30, 1996, the Bank earned $1,176,768, an increase of $168,125 over the $1,008,643 earned for the nine months ended September 30, 1995. The increase was primarily due to an increase in other income and a reduction in the provision for credit losses which were offset by an increase in income taxes due to an increase in net income. Interest income was $2,591,475 and $7,660,848 for the quarter and nine month periods ended September 30, 1996, respectively, compared to $2,583,046 and $7,409,720 for the respective periods of 1995. The quarterly increase was due mainly to an increase of $1.5 million in average earning assets for the quarter ended September 30, 1996 as compared to the quarter ended September 30, 1995. The nine month increase was due mainly to an increase of approximately $4.9 million in average earning assets when compared to the nine months ended September 30, 1995. Interest expense for the quarter ended September 30, 1996 was $1,319,464 down $13,542 from $1,333,006 for the quarter ended September 30, 1995. The decrease was due to a decrease of approximately $621,000 in average interest bearing liabilities when compared to the quarter ended September 30, 1995. Interest expense for the nine months ended September 30, 1996, increased $269,443 to $3,978,776 from $3,709,333 for the nine months ended September 30, 1995. The increase was due to an increase of approximately $2.9 million in average interest bearing liabilities and an increase of 20 basis points in the rate paid on these liabilities when compared to the nine months ended September 30, 1995. Net interest income increased $21,971 to $1,272,011 for the quarter ended September 30, 1996 compared to $1,250,040 for the quarter ended September 30, 1995. The change in net interest income is the result of an overall increase in net average earning assets of $2.1 million when compared to the quarter ended September 30, 1995. Net interest income decreased $18,315 to $3,682,072 for the nine months ended September 30, 1996 from $3,700,387 for the nine months ended September 30, 1995 as the interest margin earned on average earning assets slipped from 4.13% for the nine months ended September 30, 1995 to 3.94% for the nine months ended September 30, 1996. This decrease in interest margin was offset by an increase of $4.9 million in average earning assets for the nine months ended September 30, 1996 when compared to the nine months ended September 30, 1995. The provision for credit losses was $75,000 for both the quarter ended September 30, 1995 and September 30, 1996. The provision decreased by $120,000 to $250,000 from $370,000 for the nine months ended September 30, 1996 compared to the nine months ended September 30, 1995. Management believes the provision and the resulting allowance for credit losses is adequate. Other income was $68,865 and $283,855 for the quarter and nine month periods ended September 30, 1996 respectively, compared to $45,500 and $155,855 for the same periods in 1995. The quarterly increase was due mainly to an increase of $15,464 in commissions on sales of title insurance, an increase of $13,894 in net income earned on the operations of other real estate owned and an increase in service charges on deposit accounts of $3,820 which were offset by a decrease of $13,594 in gains on sales of securities. The nine month increase was due to an increase of $68,209 in commissions on sale of title insurance, an increase of $48,492 in net income earned on the operations of other real estate owned and a $16,524 increase in gains on sales of securities. 12 RESULTS OF OPERATIONS, CONTINUED Other expense stayed relatively flat for the quarter and nine month periods ended September 30, 1996 compared to the same periods in 1995. The quarterly increase was $3,610 (0.5%) while the nine month decrease was $14,321 (0.7%). The quarterly increase was due mainly to an increase of $18,664 in occupancy and equipment expenses due to the installation of 2 Automated Teller Machines and repairs and maintenance to the main office building, offset by a decrease of $16,231 in legal and professional fees. The nine month decrease was due to a decrease in FDIC premiums of $113,663 and a decrease in occupancy and equipment expenses of $29,315 offset by a $132,188 increase in salaries and benefits. The increase in salaries and benefits are attributable to normal annual increases in base compensation plus the increasing costs of health insurance and other employee benefits. Income taxes increased $11,478 to $153,900 for the quarter ended September 30, 1996 from $142,422 for the quarter ended September 30, 1995 and $75,881 to $460,032 for the nine month period ended September 30, 1996 from $384,151 for the nine months ended September 30, 1995. The increases were attributed to the higher level of income achieved for the quarter and nine month periods ended September 30, 1996 compared to the same periods in 1995. CHANGES IN FINANCIAL CONDITION Total assets at September 30, 1996 were $130,955,890 compared to $130,900,985 at December 31, 1995. Net loans have increased by $4.2 million due to solid loan demand. The loans were funded by lower yielding investments that had either matured or were sold. Deposits have dropped by $573,000 as management held the line on the pricing of deposits and some of the more rate sensitive certificates of deposit were not renewed. CAPITAL ADEQUACY Shareholder's equity amounted to $14,312,687 at September 30, 1996, an increase of $681,209 over the December 31, 1995 balance of $13,631,478. The increase was a result of the earnings for the nine months offset by a decrease in the market value of securities that are classified as available for sale. Regulatory guidelines relating to capital adequacy provide minimum risk- based ratios at the Bank level which assess capital adequacy while encompassing all credit risks, including those related to off-balance sheet activities. The Bank of Floyd (a wholly owned subsidiary of Cardinal Bankshares Corporation) exceeds all regulatory capital guidelines and is considered to be well capitalized. At September 30, 1996 the Bank had a ratio of Tier 1 capital to risk-weighted assets of 17.02%, a ratio of total capital to risk-weighted assets of 18.12% and a leverage ratio of Tier 1 capital to average total assets for the quarter ended September 30, 1996 of 11.07%. 13 PART II OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS There are no matters pending legal proceedings to which the Company or any of its subsidiaries is a party or of which any of their property is subject. ITEM 2. CHANGES IN SECURITIES (a) Not applicable. (b) Not applicable ITEM 3. DEFAULTS UPON SENIOR SECURITIES Not applicable. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS None. ITEM 5. OTHER INFORMATION None. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits None. (b) Reports on Form 8-K None. SIGNATURES Pursuant to the requirements of the Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. CARDINAL BANKSHARES CORPORATION Date: November 8, 1996 By: Ronald Leon Moore Signature President and Chief Executive Officer Date: November 8, 1996 By: James A. Chapman Signature Vice President and Chief Financial Officer 14 EX-27 2 ART. 9 FIN. DATA SCHEDULE FOR 3RD QTR. 10QSB
9 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CARDINAL BANKSHARES AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET AT SEPTEMBER 30, 1996 AND THE CONSOLIDATED STATEMENT OF OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1 9-MOS DEC-31-1996 SEP-30-1996 2,179,052 0 2,050,000 0 26,703,179 12,932,851 12,844,915 83,727,728 (939,944) 130,955,890 115,963,363 0 679,840 0 0 0 4,655,360 9,657,327 130,955,890 5,548,529 1,975,194 137,125 7,660,848 3,978,776 0 3,682,072 250,000 21,252 2,079,127 1,636,800 1,636,800 0 0 1,176,768 2.53 2.53 3.94 441,863 262,000 0 0 1,134,182 476,097 31,859 939,944 939,944 0 0
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