Welcome!

News Feed Item

Cardinal Bankshares Corporation Reports Results for the Quarter ended March 31, 2014

FLOYD, Va., April 22, 2014 /PRNewswire/ -- Cardinal Bankshares Corporation (OTC: CDBK), parent company of Bank of Floyd, announced today its consolidated financial results for the first quarter of 2014 and reported net income of $87 thousand, or $0.06 per share versus $130 thousand, or $0.08 per share for the same quarter in 2013. The Company's net income for the three-month period produced an annualized return on average assets of 0.13% and an annualized return on average equity of 1.93% as compared to 0.19% and 1.74% for these measures in the same period last year.

Michael Larrowe, President and Chief Executive Officer added, "The Bank experienced increased net interest income, driven by additional loan income and a decrease in interest expense on deposit accounts relative to the same period in 2013. As a result, net interest margin for the quarter improved to 3.08% from 2.85% for the year in 2013. We believe these improved operating metrics coupled with our new product and service offerings will continue to bring improved value to our customers and shareholders.  Due to substantial investment in both technology and personnel, the Bank's ability to be competitive has dramatically improved, while retaining capital levels well above required amounts."

Financial Highlights:

  • Total assets increased by $2.9 million from $268.8 million at December 31, 2013 to $271.7 million at March 31, 2014.
  • Total loans at March 31, 2014 were $146.2 million, which is an increase of $200 thousand compared to December 31, 2013.
  • A decrease in higher cost interest-bearing deposits of $2.9 million in the three-month period helped to improve the net interest margin.
  • The first quarter 2014 provision for loan losses of $22 thousand was an improvement of $278 thousand versus the same period in 2013 as losses from legacy loans continue to decrease.

Capital Levels

Both the Bank's and the Company's capital levels remain above the regulatory well-capitalized ratios.  The Company's consolidated Tier 1 risk-based and total risk-based capital ratios were 12.25% and 13.50%, respectively, at March 31, 2014, down from the 12.63% and 13.89% reported at December 31, 2013.

Nonperforming Assets

The Company's ratio of nonperforming assets as a percentage of total assets decreased 169 basis points to 3.10% as compared to 4.79% one year earlier.  Nonperforming assets decreased $5.1 million from $13.5 million at March 31, 2013 to $8.4 million at March 31, 2014.  Nonperforming assets at March 31, 2014 consisted of nonaccrual loans of $6.2 million, foreclosed assets of $2.2 million, and loans that were past due greater than 90 days and still accruing interest of zero.  Nonperforming assets at March 31, 2013 consisted of nonaccrual loans of $9.3 million, foreclosed assets of $2.7 million, and loans totaling $1.5 million that were past due greater than 90 days and still accruing interest. 

The Company recorded a provision for loan losses for the first quarter of 2014 of $22 thousand, as compared to a provision of $300 thousand for the same period last year.  Net charge-offs annualized as a percentage of average loans outstanding was (.043%) for the first quarter of 2014, compared to (.04%) for the same quarter in the prior year.  Net charge-offs (recoveries) for the quarter ended March 31, 2014 were $(156) thousand, in comparison to $(11) thousand for the same quarter one year ago.

The allowance for loan losses as a percentage of total loans increased from 1.30% at March 31, 2013 to 2.08% at March 31, 2014.  At March 31, 2014, the Company's total reserves were $3.0 million, which was comprised of $2.3 million in general reserves to cover estimated losses in the portfolio and $780 thousand that are allocated to specific credits.

Financial Position

At March 31, 2014, the Company's total assets were $271.7 million, total deposits were $237.0 million, total loans were $143.2 million and total stockholders' equity was $18.5 million. Compared with December 31, 2013, the Company's total assets increased $2.9 million or 1.1%.

Total deposits decreased by $4.7 million or 2.0%, while new advances of $7.0 million were drawn on the Federal Home Loan Bank of Atlanta during the first three months of 2014.  This shift allowed the Bank to reduce its cost of funds as rates paid on these borrowings are lower than rates paid on most of our deposits.

Stockholders' equity increased $1.1 million to $18.4 million at March 31, 2014 compared to $17.3 at December 31, 2013. Reduction of unrealized portfolio losses resulted in an increase to total equity of $1.0 million as compared to December 31, 2013.  Net income of $87 thousand accounts for the remaining increase to equity.

Net Interest Income

The Company's net interest income was $1.9 million for the three months ended March 31, 2014, an increase of $225 thousand or 13.1% compared to same period last year.  The increase is a result interest income from new loan originations combined with lower-costs on deposits and debt.

Noninterest Income

Noninterest income decreased $247 thousand for the three-month period ended March 31, 2014, compared to the same period last year, due to recognition of net realized gains on sales of securities of $296 thousand for the three-month period ended March 31, 2013. However, excluding gains taken on the sales of securities, noninterest income increased $50 thousand or 32.5%.

Noninterest Expense

Noninterest expense for the first quarter of 2014 totaled $2.0 million, up $226 thousand or 12.5% as compared to the quarter ended March 31, 2013.  The increase in noninterest expense is due to salaries and employee benefits as a result of experienced personnel additions, occupancy and equipment expense as building improvements are ongoing, data processing services as technology services offered continue to expand and other operating expenses related to increased data transmission speeds.

For Further Information Contact:

Michael D. Larrowe, President and Chief Executive Officer
Alan Dickerson, Chief Financial Officer
(540) 745-4191

 


Consolidated Balance Sheets

(in thousands, except share data)






March 31,


December 31,


2014


2013

Assets




Cash and due from banks                                           

$               3,537


$               3,339

Interest-bearing deposits in banks                                

8,240


6,757

Investment securities, available for sale                       

97,452


96,932

Investment securities, held to maturity                        

-


-

Restricted equity securities                                      

1,314


999





Total loans                                                           

146,206


146,031

Allowance for loan losses                                      

(3,040)


(2,862)

    Net loans                                                         

143,166


143,169





Bank premises and equipment, net                         

4,951


4,971

Accrued interest receivable                                     

795


910

Foreclosed assets                                                 

2,209


2,196

Bank owned life insurance                                      

6,611


6,571

Deferred tax asset                                                  

6,351


6,891

Reserve deferred tax asset                                      

(5,139)


(5,139)

Prepaid assets                                                     

947


800

Other assets                                                        

1,299


451

        Total assets                                                    

$           271,733


$           268,847





Liabilities and Stockholders' Equity








Liabilities




Noninterest-bearing deposits                                     

$             39,020


$             40,882

Interest-bearing deposits                                          

197,976


200,861

        Total deposits                                                 

236,996


241,743

FHLB advances                                                       

15,000


8,000

Accrued interest payable                                           

67


65

Bank owned life insurance SERP                              

830


828

Other liabilities                                                      

383


891

        Total liabilities                                              

253,276


251,527





Stockholders' Equity




Common stock, $10 par value; 5,000,000




Shares authorized; 1,535,733 shares issued




Issued and outstanding                                      

15,357


15,357

Additional paid-in capital                                           

2,925


2,925

Retained earnings                                                   

2,527


2,440

Accumulated other comprehensive income              

(2,352)


(3,402)

        Total stockholders' equity                              

18,457


17,320

        Total liabilities and stockholders' equity         

$           271,733


$           268,847

 

 

Consolidated Statements of Operations

(in thousands, except share data)






Three Months Ended March 31,


2014


2013

Interest and dividend income




    Loans and fees on loans        

$                     1,858


$                     1,723

    Federal funds sold                 

-


-

    Investment securities             




      Taxable                

485


402

       Exempt from federal income tax     

81


191

    Dividend income                  

5


5

    Deposits with banks       

3


6

            Total interest income    

2,432


2,327





Interest expense




    Deposits                        

489


611

    Borrowings                    

4


2

            Total interest expense         

493


613

            Net interest income       

1,939


1,714





Provision for loan losses         

22


300

        Net interest income after provision




            for loan losses          

1,917


1,414





Noninterest income




    Service charges on deposit accounts         

38


42

    Other service charges and fees            

27


26

    Net realized gains on sales of securities   

(1)


296

    Income on bank owned life insurance      

40


43

    Other income                                 

99


43

        Total noninterest income          

203


450





Noninterest expense




    Salaries and employee benefits      

1,138


1,065

    Occupancy and equipment            

287


202

    Legal and professional                  

68


120

    Bank franchise tax                       

42


36

    Data processing services               

124


71

    FDIC insurance premiums              

91


91

    Foreclosed assets, net                  

19


34

    Other operating expense                       

265


189

        Total noninterest expense                

2,034


1,808

        Income (loss) before income taxes    

86


56

        Income tax expense (benefit)        

(1)


(74)

Net income (loss)                                  

$                           87


$                         130

Basic earnings (loss) per share             

$                        0.06


$                        0.08

 


Cardinal Bankshares Corporation

Financial Highlights (Unaudited)

(in thousands)





Three Months Ended


March 31,
2014


March 31,
2013





Per Share




Earnings per share, basic and diluted

$          0.06


$           0.08

Book value

$        12.02


$         18.41





Financial Ratios




Annualized Return on Average Assets

0.13%


0.19%

Annualized Return on Average Equity

1.93%


1.74%

Annualized Net Interest Margin for the quarter ended1

3.08%


3.25%

Efficiency Ratio2

94.03%


97.39%





Capital Ratios




Tier 1 risk-based capital - Bank only

11.15%


12.19%

Total risk-based capital - Bank only

12.40%


13.22%





Tier 1 risk-based capital - consolidated

12.25%


15.33%

Total risk-based capital - consolidated

13.50%


16.42%





Allowance for Loan Losses at Beginning of Period

$        2,862


$         1,514

Loans Charged-off, net of Recoveries

156


11

Provision for Loan Losses

22


300

Allowance for Loan Losses at End of Period

$        3,040


$         1,825





Credit Quality Ratios




Nonperforming Assets as a % of Total Assets

3.10%


4.79%

Total Allowance for Loan Losses as a % of Total Loans

2.08%


1.30%

Total Allowance for Loan Losses as a % of Nonperforming Loans

48.97%


16.87%

Annualized Net Charge-offs as a % of Average Loans

-0.43%


-0.04%





Nonperforming Assets




Nonaccrual Loans

$        6,192


$         9,271

Loans Past Due 90 Days+, still accruing

16


1,547





Total Nonperforming Loans

6,208


10,818

Other Real Estate Owned

2,209


2,671

Total Nonperforming Assets

$        8,417


$       13,489





1 Net interest margin equals net interest income divided by interest-earning average assets.

2 Efficiency ratio equals noninterest expense (excluding OREO valuations and OREO operating expenses) divided by net interest income plus noninterest income (excluding net realized gains on sales of securities).

 

SOURCE Cardinal Bankshares Corporation

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
A look across the tech landscape at the disruptive technologies that are increasing in prominence and speculate as to which will be most impactful for communications – namely, AI and Cloud Computing. In his session at 20th Cloud Expo, Curtis Peterson, VP of Operations at RingCentral, highlighted the current challenges of these transformative technologies and shared strategies for preparing your organization for these changes. This “view from the top” outlined the latest trends and developments i...
Cloud applications are seeing a deluge of requests to support the exploding advanced analytics market. “Open analytics” is the emerging strategy to deliver that data through an open data access layer, in the cloud, to be directly consumed by external analytics tools and popular programming languages. An increasing number of data engineers and data scientists use a variety of platforms and advanced analytics languages such as SAS, R, Python and Java, as well as frameworks such as Hadoop and Spark...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Automation is enabling enterprises to design, deploy, and manage more complex, hybrid cloud environments. Yet the people who manage these environments must be trained in and understanding these environments better than ever before. A new era of analytics and cognitive computing is adding intelligence, but also more complexity, to these cloud environments. How smart is your cloud? How smart should it be? In this power panel at 20th Cloud Expo, moderated by Conference Chair Roger Strukhoff, paneli...
@DevOpsSummit at Cloud Expo taking place Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center, Santa Clara, CA, is co-located with the 21st International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is ...
The current age of digital transformation means that IT organizations must adapt their toolset to cover all digital experiences, beyond just the end users’. Today’s businesses can no longer focus solely on the digital interactions they manage with employees or customers; they must now contend with non-traditional factors. Whether it's the power of brand to make or break a company, the need to monitor across all locations 24/7, or the ability to proactively resolve issues, companies must adapt to...
"We are a monitoring company. We work with Salesforce, BBC, and quite a few other big logos. We basically provide monitoring for them, structure for their cloud services and we fit into the DevOps world" explained David Gildeh, Co-founder and CEO of Outlyer, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Cloud promises the agility required by today’s digital businesses. As organizations adopt cloud based infrastructures and services, their IT resources become increasingly dynamic and hybrid in nature. Managing these require modern IT operations and tools. In his session at 20th Cloud Expo, Raj Sundaram, Senior Principal Product Manager at CA Technologies, will discuss how to modernize your IT operations in order to proactively manage your hybrid cloud and IT environments. He will be sharing bes...
Join us at Cloud Expo June 6-8 to find out how to securely connect your cloud app to any cloud or on-premises data source – without complex firewall changes. More users are demanding access to on-premises data from their cloud applications. It’s no longer a “nice-to-have” but an important differentiator that drives competitive advantages. It’s the new “must have” in the hybrid era. Users want capabilities that give them a unified view of the data to get closer to customers and grow business. The...
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
Artificial intelligence, machine learning, neural networks. We’re in the midst of a wave of excitement around AI such as hasn’t been seen for a few decades. But those previous periods of inflated expectations led to troughs of disappointment. Will this time be different? Most likely. Applications of AI such as predictive analytics are already decreasing costs and improving reliability of industrial machinery. Furthermore, the funding and research going into AI now comes from a wide range of com...
"When we talk about cloud without compromise what we're talking about is that when people think about 'I need the flexibility of the cloud' - it's the ability to create applications and run them in a cloud environment that's far more flexible,” explained Matthew Finnie, CTO of Interoute, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business...
SYS-CON Events announced today that GrapeUp, the leading provider of rapid product development at the speed of business, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market acr...