Cardinal Financial Corp. (CFNL, Financial) filed Quarterly Report for the period ended 2009-09-30.
Cardinal Financial Corporation is a bank holding company. Through its bank subsidiaries Cardinal Financial Corporation pursues a community bankingstrategy by offering a broad range of banking products to individualsprofessionals and small to medium-sized businesses with an emphasis onpersonalized service and local decision-making authority. Cardinal Financial Corp. has a market cap of $238.6 million; its shares were traded at around $8.32 with a P/E ratio of 28.7 and P/S ratio of 2.3. The dividend yield of Cardinal Financial Corp. stocks is 0.5%. Cardinal Financial Corp. had an annual average earning growth of 90.3% over the past 5 years.
Net income for the nine months ended September 30, 2009 was $6.9 million. For the year-to-date September 30, 2008, we recorded a net loss of $1.5 million. Net interest income after the provision for loan losses for the nine months ended September 30, 2009 increased $1.0 million to $30.9 million compared to $30.0 million for the nine months ended September 30,
2008. The increase in net interest income after provision for loan losses is directly related to our increase in net interest income during 2009. Net interest income increased $3.0 million to $35.7 million for the nine months ended September 30, 2009 compared to $32.7 million for the same period of 2008. Provision for loan losses for the nine months ended September 30, 2009 and 2008 was $4.8 million and $2.7 million, respectively, an increase of $2.0 million, or 74%. Noninterest income was $17.7 million for the nine months ended September 30, 2009, an increase of $4.3 million, or 32%, from $13.4 million for the nine months ended September 30, 2008. The increase in noninterest income is primarily a result of the increase in realized and unrealized gains on mortgage banking activities, which increased $3.7 million to $9.6 million for the nine months ended September 30, 2009. Noninterest expense for the nine months ended September 30, 2009 was $38.7 million compared to $44.7 million for the same period of 2008. The decrease in noninterest expense was primarily related to the aforementioned impairments recorded during the third quarter of 2008.
We operate in three business segments, commercial banking, mortgage banking and wealth management and trust services. Net income attributable to the commercial banking segment for the three months ended September 30, 2009 was $2.2 million compared to a net loss of $1.7 million for the three months ended September 30, 2008. Net interest income increased $1.9 million to $12.6 million for the three months ended September 30, 2009, compared to $10.7 million for the same period of 2008. Provision for loan losses increased $1.2 million to $2.1 million for the three months ended September 30, 2009 compared to $865,000 for the same period of 2008. The increase in provision expense is related to current economic and market conditions and an increase in loan charge-offs during 2009. Noninterest income decreased to $917,000 for the three months ended September 30, 2009 compared to $1.1 million for the three months ended September 30, 2008. During the third quarter of 2009, gains of $73,000 were recorded on sales of investment securities available-for-sale, compared to $306,000 for the three months ended September 30, 2008. Noninterest expense was $8.3 million for the three months ended September 30, 2009, compared to $12.1 million for the same period of 2008. The decrease is primarily due to an other-than-temporary impairment charge recorded during the third quarter of 2008 for our investment in Fannie Mae perpetual preferred stock. No such impairment was recorded during 2009. For the nine months ended September 30, 2009, net income for the commercial banking segment was $5.1 million compared to $3.2 million for the nine months ended September 30, 2008. Net interest income increased $3.1 million to $34.2 million for the nine months ended September 30, 2009 as compared to $31.1 million for the same period of 2008. Provision for loan losses increased $2.9 million to $4.7 million for the year-to-date period of 2009, compared to $1.8 million for 2008. Noninterest expense was $25.5 million for the nine months ended September 30, 2009 compared to $27.2 million for the same period of 2008.
The mortgage banking segment reported net income of $779,000 for the three months ended September 30, 2009 compared to a net loss of $2.2 million for the three months ended September 30, 2008. The increase in net income for the three months ended September 30, 2009 was primarily attributable to an increase in loan origination volume due to the decrease in mortgage interest rates and more affordable housing prices. In addition, during the third quarter of 2008, the mortgage banking segment recorded a goodwill impairment charge of $2.8 million which contributed to the loss reported in 2008. For the nine months ended September 30, 2009, this segment reported net income of $3.5 million compared to a loss of $2.9 million for the same nine month period of 2008. Again, the increase in net income is primarily related to the increase in loan origination volume during 2009 as compared to 2008, and the aforementioned goodwill impairment charge which was recorded during 2008. In addition, this segment recorded a $1.8 settlement with a mortgage correspondent during 2008.
Net interest income represents the difference between interest and fees earned on interest -earning assets and the interest paid on deposits and other interest-bearing liabilities. The level of net interest income is impacted primarily by variations in the volume and mix of these assets and liabilities, as well as changes in interest rates. Net interest income for the three months ended September 30, 2009 and 2008 was $13.1 million and $11.3 million, respectively, a period-to-period increase of $1.8 million, or 16%. For the nine months ended September 30, 2009 and 2008, net interest income was $35.7 million and $32.7 million, respectively, an increase of $3.0 million, or 9%. The yields on both our assets and liabilities fell during the quarter and year-to-date periods as interest rates decreased. The increase in net interest income is primarily the result of a greater decrease in our cost of interest-bearing liabilities than our decrease in the yields earned for average earning assets.
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Cardinal Financial Corporation is a bank holding company. Through its bank subsidiaries Cardinal Financial Corporation pursues a community bankingstrategy by offering a broad range of banking products to individualsprofessionals and small to medium-sized businesses with an emphasis onpersonalized service and local decision-making authority. Cardinal Financial Corp. has a market cap of $238.6 million; its shares were traded at around $8.32 with a P/E ratio of 28.7 and P/S ratio of 2.3. The dividend yield of Cardinal Financial Corp. stocks is 0.5%. Cardinal Financial Corp. had an annual average earning growth of 90.3% over the past 5 years.
Highlight of Business Operations:
For the three months ended September 30, 2009 and 2008, we reported net income of $2.6 million and a net loss of $4.4 million, respectively. Net interest income after the provision for loan losses increased $1.4 million to $11.0 million for the three months ended September 30, 2009 compared to $9.6 million for the three months ended September 30, 2008. The increase in net interest income after provision for loan losses is a direct result of an increase in our net interest income of $1.8 million to $13.1 million for the three months ended September 30, 2009, despite an increase in our provision for loan losses. Provision for loan losses for the three months ended September 30, 2009 was $2.1 million, an increase of $405,000 compared to $1.6 million for the same period of 2008. Noninterest income for the three months ended September 30, 2009 was $5.7 million, an increase of $1.3 million, or 30%, compared to $4.4 million for the three months ended September 30, 2008. The increase in noninterest income is primarily due to an increase in realized and unrealized gains on mortgage banking activities, which increased $848,000 to $2.8 million for the three months ended September 30, 2009 compared to $2.0 million for the quarter ended September 30, 2008. For the three months ended September 30, 2009, noninterest expense decreased to $13.0 million, compared to $19.3 million for the same period of 2008. The decrease in noninterest expense is attributable to the impairments recorded during the third quarter of 2008 for our investment in Fannie Mae perpetual preferred stock ($4.4 million) and an impairment in the goodwill associated with our acquisition of George Mason ($2.8 million). No such impairments were recorded during 2009.Net income for the nine months ended September 30, 2009 was $6.9 million. For the year-to-date September 30, 2008, we recorded a net loss of $1.5 million. Net interest income after the provision for loan losses for the nine months ended September 30, 2009 increased $1.0 million to $30.9 million compared to $30.0 million for the nine months ended September 30,
2008. The increase in net interest income after provision for loan losses is directly related to our increase in net interest income during 2009. Net interest income increased $3.0 million to $35.7 million for the nine months ended September 30, 2009 compared to $32.7 million for the same period of 2008. Provision for loan losses for the nine months ended September 30, 2009 and 2008 was $4.8 million and $2.7 million, respectively, an increase of $2.0 million, or 74%. Noninterest income was $17.7 million for the nine months ended September 30, 2009, an increase of $4.3 million, or 32%, from $13.4 million for the nine months ended September 30, 2008. The increase in noninterest income is primarily a result of the increase in realized and unrealized gains on mortgage banking activities, which increased $3.7 million to $9.6 million for the nine months ended September 30, 2009. Noninterest expense for the nine months ended September 30, 2009 was $38.7 million compared to $44.7 million for the same period of 2008. The decrease in noninterest expense was primarily related to the aforementioned impairments recorded during the third quarter of 2008.
We operate in three business segments, commercial banking, mortgage banking and wealth management and trust services. Net income attributable to the commercial banking segment for the three months ended September 30, 2009 was $2.2 million compared to a net loss of $1.7 million for the three months ended September 30, 2008. Net interest income increased $1.9 million to $12.6 million for the three months ended September 30, 2009, compared to $10.7 million for the same period of 2008. Provision for loan losses increased $1.2 million to $2.1 million for the three months ended September 30, 2009 compared to $865,000 for the same period of 2008. The increase in provision expense is related to current economic and market conditions and an increase in loan charge-offs during 2009. Noninterest income decreased to $917,000 for the three months ended September 30, 2009 compared to $1.1 million for the three months ended September 30, 2008. During the third quarter of 2009, gains of $73,000 were recorded on sales of investment securities available-for-sale, compared to $306,000 for the three months ended September 30, 2008. Noninterest expense was $8.3 million for the three months ended September 30, 2009, compared to $12.1 million for the same period of 2008. The decrease is primarily due to an other-than-temporary impairment charge recorded during the third quarter of 2008 for our investment in Fannie Mae perpetual preferred stock. No such impairment was recorded during 2009. For the nine months ended September 30, 2009, net income for the commercial banking segment was $5.1 million compared to $3.2 million for the nine months ended September 30, 2008. Net interest income increased $3.1 million to $34.2 million for the nine months ended September 30, 2009 as compared to $31.1 million for the same period of 2008. Provision for loan losses increased $2.9 million to $4.7 million for the year-to-date period of 2009, compared to $1.8 million for 2008. Noninterest expense was $25.5 million for the nine months ended September 30, 2009 compared to $27.2 million for the same period of 2008.
The mortgage banking segment reported net income of $779,000 for the three months ended September 30, 2009 compared to a net loss of $2.2 million for the three months ended September 30, 2008. The increase in net income for the three months ended September 30, 2009 was primarily attributable to an increase in loan origination volume due to the decrease in mortgage interest rates and more affordable housing prices. In addition, during the third quarter of 2008, the mortgage banking segment recorded a goodwill impairment charge of $2.8 million which contributed to the loss reported in 2008. For the nine months ended September 30, 2009, this segment reported net income of $3.5 million compared to a loss of $2.9 million for the same nine month period of 2008. Again, the increase in net income is primarily related to the increase in loan origination volume during 2009 as compared to 2008, and the aforementioned goodwill impairment charge which was recorded during 2008. In addition, this segment recorded a $1.8 settlement with a mortgage correspondent during 2008.
Net interest income represents the difference between interest and fees earned on interest -earning assets and the interest paid on deposits and other interest-bearing liabilities. The level of net interest income is impacted primarily by variations in the volume and mix of these assets and liabilities, as well as changes in interest rates. Net interest income for the three months ended September 30, 2009 and 2008 was $13.1 million and $11.3 million, respectively, a period-to-period increase of $1.8 million, or 16%. For the nine months ended September 30, 2009 and 2008, net interest income was $35.7 million and $32.7 million, respectively, an increase of $3.0 million, or 9%. The yields on both our assets and liabilities fell during the quarter and year-to-date periods as interest rates decreased. The increase in net interest income is primarily the result of a greater decrease in our cost of interest-bearing liabilities than our decrease in the yields earned for average earning assets.
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