Cardinal Bankshares Corporation Announces Third Quarter 2015 Earnings

FLOYD, Va., Nov. 2, 2015 /PRNewswire/ -- Cardinal Bankshares Corporation (OTC-QB: CDBK), parent company of Bank of Floyd, announced its consolidated financial results for the third quarter ended September 30, 2015.  The Company reported consolidated net income of $180 thousand for the third quarter and $353 thousand for the nine months ended September 30, 2015. 

Third quarter financial highlights include:

• Annualized net interest margin improved to 3.34% for the three months ended September 30, 2015 as compared to 3.02% for the same three month period in 2014. Annualized net interest margin also improved when compared to the 3.25% reported for the three month period ended June 30, 2015.
• Non-performing Assets as a percentage of total assets declined to .07% at September 30, 2015 showing continued significant improvement when compared to 1.44% at September 30, 2014.
• Total loans declined $6.8 million from $177.3 million at June 30, 2015 to $170.5 million at September 30, 2015. The decline resulted from unusually high payoffs during the quarter.
• New checking account acquisition efforts resulted in the addition of over 400 net new accounts during the first nine months of 2015, a 5.72% increase for the nine month period.
• Interest bearing deposits declined from by $7.0 million from December 31, 2014 to $188.3 million at September 30, 2015, as high priced certificates of deposit continued to run-off. As a result, interest expense on deposits declined 14.23% for the nine month period ended September 30, 2015 as compared to the same period in 2014.

According to Mark A. Smith, Interim President & CEO, "We are pleased that our strategies to improve profitability and attract new customers to the Bank continued to produce improved results during the third quarter.  We are also pleased with the additional progress that was made in eliminating legacy credit issues.  The credit issues that negatively impacted earnings and capital are behind us.  Unusually high payoffs adversely impacted our goals for loan growth during the quarter.  As a result, we are working to ensure our product offerings remain competitive and our delivery methods exceed customer expectations so that we can achieve our desired growth in the loan portfolio."   

A Warning about Forward-Looking Statements
This news release contains forward-looking statements. The Company may also make written forward-looking statements in proxy statements, offering circulars and prospectuses, press releases and other written materials and oral statements made by Cardinal Bankshares' officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. These statements are based on beliefs and assumptions of the Company's management, and on information currently available to such management. Forward-looking statements include statements preceded by, followed by or that include the words "believes," "expects," "estimates," "anticipates," "plans," or similar expressions. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update publicly any of them in light of new information or future events.

Forward-looking statements involve inherent risks and uncertainties. Management cautions the readers that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Such factors include, but are not limited to, the following: competitive pressures among depository and other financial institutions may increase significantly; changes in the interest rate environment may reduce margins; general economic or business conditions may lead to a deterioration in credit quality or a reduced demand for credit; legislative or regulatory changes, including changes in accounting standards, may adversely affect the business in which Cardinal is engaged; changes may occur in the securities markets; and competitors of the Company may have greater financial resources and develop products that enable such competitors to compete more successfully than Cardinal.

Other factors that may cause actual results to differ from the forward-looking statements include the following: the timely development of competitive new products and services by the Company and the acceptance of such products and services by customers; changes in consumer spending and savings habits; the effects of competitors' pricing policies; the Company's success in managing the costs associated with the expansion of existing distribution channels and developing new ones, and in realizing increased revenues from such distribution channels, including cross-selling initiatives; and mergers and acquisitions and their integration into the Company and management's ability to manage these other risks.

Management of Cardinal believes these forward-looking statements are reasonable; however undue reliance should not be placed on such forward-looking statements, which are based on current expectations. Forward-looking statements are not guarantees of performance.  They involve risks, uncertainties and assumptions. The future results and stockholder values of Cardinal may differ materially from those expressed in forward-looking statements contained in this report. Many of the factors that will determine these results and values are beyond the Company's ability to control or predict.

For Further Information Contact:

Mark A. Smith, Interim President and Chief Executive Officer
J. Alan Dickerson, Chief Financial Officer
(540) 745-4191

SOURCE Cardinal Bankshares Corporation

Related Links

http://www.bankoffloyd.com