Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - CARDINAL BANKSHARES CORP | d303717d8k.htm |
Exhibit 99.1
Cardinal Bankshares Corporation Announces Operating Results
Floyd, VA, February 17, 2012 - Cardinal Bankshares Corporation has announced results of operations for the year ending December 31, 2011.
Cardinal ended the year with total assets of $266,160,000, an increase of $17,092,000 or 6.86% over 2010. Total deposits increased $15,426,000 or 7.11% to $232,411,000, while net loans decreased $18,552,000 or 12.72% to $127,291,000. Loan loss reserves as a percentage of total loans increased to 2.20% for 2011 as compared to 2.06% for 2010.
Net income increased for a second consecutive year, totaling $1,099,000 for 2011, an increase of 13.42% compared to 2010. Earnings per share for 2011 increased $.09 to $.72 per share, an increase of 14.28% over 2010.
The three capital ratios used to measure bank strength continue to be well in excess of the requirements necessary to be classified as well capitalized.
Leon Moore, Chairman and CEO, commented, “The Bank improved its operating results for 2011 while maintaining its track record of being well capitalized and paying a semi-annual dividend. Total assets continued to increase while growth in deposits was greater than anticipated. Loans decreased due to payoffs as rates continue to decline, with the Bank focusing on loan quality and interest rate margin.”
Moore continued, “The Bank’s solid performance was achieved during an economy which continues to be a challenge, along with increased competition and increasing regulation. As a result of hard work, dedication and focus by all the Bank’s employees, senior management and the Board we show a positive improvement in our performance, while maintaining a safe, sound, well capitalized and customer service oriented financial institution.”
In conclusion, Moore stated: “The improved operating results, along with the increase in total assets and deposits, continues to show the public support for and belief in the locally head-quartered community bank model.”
Cardinal Bankshares Corporation is a bank holding company headquartered in Floyd, Virginia, and is the parent company for Bank of Floyd. Bank of Floyd is a community bank, headquartered in Floyd, Virginia. Bank of Floyd operates seven locations in Floyd, Hillsville, Roanoke, Salem, Christiansburg, Fairlawn and Willis, Virginia. Bank of Floyd is the parent company of FBC, Inc. offering insurance services through Bankers Insurance and Virginia Title Center.
Cardinal Bankshares Corporation stock is traded over the Bulletin Board under the stock symbol CDBK.OB.
Cardinal Bankshares Corporation and Subsidiaries
Consolidated Balance Sheets
| December 31, (In thousands, except share data) |
(Unaudited) 2011 |
(Audited) 2010 |
||||||
| Assets |
||||||||
| Cash and due from banks |
$ | 4,255 | $ | 2,948 | ||||
| Interest-bearing deposits in banks |
14,758 | 7,792 | ||||||
| Federal funds sold |
33,700 | 21,550 | ||||||
|
|
|
|
|
|||||
| Total cash and cash equivalents |
52,713 | 32,290 | ||||||
|
|
|
|
|
|||||
| Investment securities available for sale, at fair value |
57,105 | 42,644 | ||||||
| Investment securities held to maturity (fair value approximates $13,662 and $14,780 at December 31, 2011 and 2010, respectively) |
12,950 | 14,698 | ||||||
| Restricted equity securities |
592 | 575 | ||||||
| Total loans |
130,158 | 148,916 | ||||||
| Allowance for loan losses |
(2,867 | ) | (3,073 | ) | ||||
|
|
|
|
|
|||||
| Net loans |
127,291 | 145,843 | ||||||
|
|
|
|
|
|||||
| Bank premises and equipment, net |
2,895 | 3,846 | ||||||
| Accrued interest receivable |
824 | 954 | ||||||
| Foreclosed assets |
3,418 | 509 | ||||||
| Bank owned life insurance |
5,437 | 5,279 | ||||||
| Other assets |
2,935 | 2,430 | ||||||
|
|
|
|
|
|||||
| Total assets |
$ | 266,160 | $ | 249,068 | ||||
|
|
|
|
|
|||||
| Liabilities and Stockholders’ Equity |
||||||||
| Liabilities |
||||||||
| Noninterest-bearing deposits |
$ | 32,135 | $ | 28,264 | ||||
| Interest-bearing deposits |
200,276 | 188,721 | ||||||
|
|
|
|
|
|||||
| Total deposits |
232,411 | 216,985 | ||||||
| Accrued interest payable |
88 | 111 | ||||||
| Other liabilities |
628 | 85 | ||||||
|
|
|
|
|
|||||
| Total liabilities |
233,127 | 217,181 | ||||||
|
|
|
|
|
|||||
| Commitments and contingencies |
— | — | ||||||
| Stockholders’ equity |
||||||||
| Common stock, $10 par value; 5,000,000 shares authorized; 1,535,733 shares issued and outstanding at December 31, 2011 and 2010 |
15,357 | 15,357 | ||||||
| Additional paid-in capital |
2,925 | 2,925 | ||||||
| Retained earnings |
14,292 | 13,439 | ||||||
| Accumulated other comprehensive gain (loss) |
459 | 166 | ||||||
|
|
|
|
|
|||||
| Total stockholders’ equity |
33,033 | 31,887 | ||||||
|
|
|
|
|
|||||
| Total liabilities and stockholders’ equity |
$ | 266,160 | $ | 249,068 | ||||
|
|
|
|
|
|||||
Cardinal Bankshares Corporation and Subsidiaries
Consolidated Statements of Income
| Years ended December 31, (In thousands, except share and per share data) |
(Unaudited) 2011 |
(Audited) 2010 |
||||||
| Interest and dividend income |
||||||||
| Loans and fees on loans |
$ | 8,031 | $ | 8,818 | ||||
| Federal funds sold |
49 | 44 | ||||||
| Investment securities: |
||||||||
| Taxable |
1,346 | 1,233 | ||||||
| Exempt from federal income tax |
679 | 726 | ||||||
| Dividend income |
15 | 19 | ||||||
| Deposits with banks |
2 | 7 | ||||||
|
|
|
|
|
|||||
| Total interest income |
10,122 | 10,847 | ||||||
|
|
|
|
|
|||||
| Interest expense |
||||||||
| Deposits |
3,066 | 4,395 | ||||||
|
|
|
|
|
|||||
| Total interest expense |
3,066 | 4,395 | ||||||
|
|
|
|
|
|||||
| Net interest income |
7,056 | 6,452 | ||||||
| Provision for loan losses |
592 | 661 | ||||||
|
|
|
|
|
|||||
| Net interest income after provision for loan losses |
6,464 | 5,791 | ||||||
|
|
|
|
|
|||||
| Noninterest income |
||||||||
| Service charges on deposit accounts |
208 | 194 | ||||||
| Other service charges and fees |
117 | 124 | ||||||
| Net realized gains on sales of securities |
115 | 98 | ||||||
| Net other-than-temporary impairment on investments |
(300 | ) | — | |||||
| Income on bank owned life insurance |
158 | 164 | ||||||
| Other income |
126 | 103 | ||||||
|
|
|
|
|
|||||
| Total noninterest income |
424 | 683 | ||||||
|
|
|
|
|
|||||
| Noninterest expense |
||||||||
| Salaries and employee benefits |
3,496 | 3,236 | ||||||
| Occupancy and equipment |
607 | 679 | ||||||
| Legal and professional |
287 | 157 | ||||||
| Bank franchise tax |
172 | 156 | ||||||
| Data processing services |
227 | 241 | ||||||
| FDIC insurance premiums |
303 | 368 | ||||||
| Foreclosed assets, net |
(33 | ) | 51 | |||||
| Loss on sale of premises and equipment |
82 | — | ||||||
| Other operating expense |
583 | 632 | ||||||
|
|
|
|
|
|||||
| Total noninterest expense |
5,724 | 5,520 | ||||||
|
|
|
|
|
|||||
| Income before income taxes |
1,164 | 954 | ||||||
| Income tax expense (benefit) |
65 | (15 | ) | |||||
|
|
|
|
|
|||||
| Net income |
$ | 1,099 | $ | 969 | ||||
|
|
|
|
|
|||||
| Basic earnings per share |
$ | .72 | $ | .63 | ||||
|
|
|
|
|
|||||
| Diluted earnings per share |
$ | .72 | $ | .63 | ||||
|
|
|
|
|
|||||
| Weighted average basic shares outstanding |
1,535,733 | 1,535,733 | ||||||
|
|
|
|
|
|||||
| Weighted average diluted shares outstanding |
1,535,733 | 1,535,733 | ||||||
|
|
|
|
|
|||||