EX-99.1 2 a17-2287_2ex99d1.htm EX-99.1

Exhibit 99.1

 

 

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

 

2



 

or

Mark A. Wendel,

EVP, Chief Financial Officer

 

703-584-3400

 

3



 

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

%