U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
X Quarterly Report under Section 13 or 15(d) of the Securities Exchange Act
of 1934
For the quarterly period ended September 30, 1996
or
_____Transition Report under Section 13 or 15 (d) of the Securities Exchange
Act of 1934
For the transition period from__________________ to __________________.
Commission File No. Not yet assigned; This is first filing.
CARDINAL BANKSHARES CORPORATION
(Exact name of the registrant as specified in its charter)
Virginia 54-1804471
(State of Incorporation) (I.R.S. Employer Identification No.)
101 Jacksonville Circle (P. O. Box 215), Floyd VA 24091
(Address of principal executive offices)
(540) 745-4191
(Issuer's telephone number, including area code)
Check whether the issuer: (1) filed all reports required to be filed by
Section 13 or 15 (d) of the Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.
Yes X No
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date:
The number of shares outstanding of the Issuer's Common Stock, $10 Par
Value, as of September 30, 1996 was 465,536.
Transitional Small Business Disclosure Format (check one):Yes No X
Page 1 of 14. There are no Exhibits
CARDINAL BANKSHARES CORPORATION AND SUBSIDIARIES
FORM 10-QSB
INDEX
_____________________________________________________________________________
PART 1. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
The consolidated financial statements of Cardinal Bankshares Corporation
(the "Company") are set forth in the following pages.
Consolidated Balance Sheets as of September 30, 1996 and
December 31,1995........................................................3
Consolidated Statements of Operations for the Nine Months
Ended September 30, 1996 and 1995.......................................4
Consolidated Statements of Operations for the Three Months
Ended September 30, 1996 and 1995.......................................5
Consolidated Statements of Stockholders' Equity for the
Periods Ended September 30, 1996 and 1995...............................6
Consolidated Statements of Cash Flows for the Nine Months
Ended September 30, 1996 and 1995.....................................7-8
Notes to Consolidated Financial Statements............................9-11
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS.....................................11-13
PART II. OTHER INFORMATION................................................14
All schedules have been omitted because they are inapplicable or the
required information is provided in the financial statements, including the
notes thereto.
2
CARDINAL BANKSHARES CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
September 30, 1996 and December 31, 1995
________________________________________________________________________________
<TABLE>
<CAPTION>
September 30, December 31,
1996 1995
____________ ____________
(Unaudited) (Note)
<S> <C> <C>
ASSETS
Cash and due from banks $ 2,179,052 $ 1,907,215
Federal funds sold 2,050,000 1,750,000
Investment securities available for sale 26,703,179 31,387,218
Investment securities held to maturity;
market value of $12,844,915 in 1996 and
$12,702,338 in 1995 12,932,851 12,610,486
Loans, net of allowance for credit losses
of $939,944 in 1996 and $1,134,182 in
1995 (Note 2) 82,787,784 78,630,298
Premises and equipment 1,594,429 1,526,303
Accrued income 992,251 1,069,484
Other assets 1,716,344 2,019,981
___________ ___________
Total assets $130,955,890 $130,900,985
LIABILITIES
Demand deposits $ 11,651,933 $ 10,867,355
NOW deposits 7,953,773 8,127,608
Savings deposits 18,453,091 18,750,756
Large denomination time deposits 8,389,418 8,481,053
Other time deposits 69,515,148 70,309,866
___________ ___________
Total deposits 115,963,363 116,536,638
Accrued interest payable 282,267 252,957
Other liabilities 397,573 479,912
___________ ___________
Total liabilities 116,643,203 117,269,507
___________ ___________
Commitments and contingencies (Note 3)
STOCKHOLDERS'EQUITY:
Common stock, $10 par value, authorized 1996,
5,000,000 shares,1995, 2,000,000;issued 465,536
shares in 1996 and 1995, respectively 4,655,360 4,655,360
Surplus 1,200,000 1,200,000
Retained earnings 8,658,357 7,481,589
Unrealized appreciation (depreciation) on
investment securities available for sale,
net of income taxes (201,030) 294,529
___________ ___________
Total stockholders' equity 14,312,687 13,631,478
___________ ___________
Total liabilities and stockholders'
equity $130,955,890 $130,900,985
___________ ___________
</TABLE>
Note: The Consolidated Balance Sheet as of December 31, 1995 has been
taken from the audited financial statements of that date.
See Notes to Consolidated Financial Statements 3
CARDINAL BANKSHARES CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
For the nine months ended September 30, 1996 and 1995 (Unaudited)
________________________________________________________________________________
<TABLE>
<CAPTION>
Nine Months
Ended
September 30,
______________
1996 1995
____ ____
<S> <C> <C>
INTEREST INCOME:
Loans and fees on loans $ 5,548,529 $ 5,409,514
Federal funds sold 137,125 264,258
Taxable investment securities 1,626,892 1,503,674
Investment securities exempt from
federal tax 348,302 232,274
__________ __________
Total interest income 7,660,848 7,409,720
INTEREST EXPENSE ON DEPOSITS 3,978,776 3,709,333
__________ __________
Net interest income 3,682,072 3,700,387
PROVISION FOR CREDIT LOSSES 250,000 370,000
__________ __________
Net interest income after provision
for credit losses 3,432,072 3,330,387
OTHER INCOME:
Service charges on deposit accounts 87,527 92,202
Other service charges and fees 8,001 11,840
Securities gains 21,252 4,728
Other income 167,075 47,085
__________ __________
Total other income 283,855 155,855
OTHER EXPENSE:
Salaries and employee benefits 1,280,746 1,148,558
Occupancy expense 82,789 113,425
Equipment expense 144,774 143,453
Other expense 570,818 688,012
__________ __________
Total other expense 2,079,127 2,093,448
__________ __________
Income before income taxes 1,636,800 1,392,794
Income tax expense 460,032 384,151
__________ __________
Net income $ 1,176,768 $ 1,008,643
NET INCOME PER SHARE (Note 4) $ 2.53 $ 2.17
/TABLE>
See Notes to Consolidated Financial Statements 4
CARDINAL BANKSHARES CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
For the three months ended September 30, 1996 and 1995 (unaudited)
________________________________________________________________________________
</TABLE>
<TABLE>
<CAPTION> Three Months
Ended
September 30,
____________
1996 1995
____ ____
<S> <C> <C>
INTEREST INCOME:
Loans and fees on loans $ 1,901,159 $ 1,855,711
Federal funds sold 41,184 90,162
Taxable investment securities 535,775 551,480
Investment securities exempt from
federal tax 113,357 85,693
___________ __________
Total interest income 2,591,475 2,583,046
INTEREST EXPENSE ON DEPOSITS 1,319,464 1,333,006
___________ ___________
Net interest income 1,272,011 1,250,040
PROVISION FOR CREDIT LOSSES 75,000 75,000
___________ ___________
Net interest income after
provision for credit losses 1,197,011 1,175,040
OTHER INCOME:
Service charges on deposit accounts 30,216 26,396
Other service charges and fees 3,479 6,527
Securities gains (11,239) 2,355
Other income 46,409 10,222
___________ ___________
Total other income 68,865 45,500
OTHER EXPENSE:
Salaries and employee benefits 431,225 433,575
Occupancy expense 26,733 38,868
Equipment expense 59,178 28,379
Other expense 193,734 206,438
___________ ___________
Total other expense 710,870 707,260
___________ ___________
Income before income taxes 555,006 513,280
Income tax expense 153,900 142,422
___________ __________
Net income $ 401,106 $ 370,858
___________ ___________
NET INCOME PER SHARE (Note 4) $ 0.86 $ 0.80
___________ ___________
</TABLE>
See Notes to Consolidated Financial Statements 5
CARDINAL BANKSHARES CORPORATION AND SUBSIDIARIES
Consolidated Statement of Changes in Stockholders' Equity
For the nine months ended September 30, 1996 and September 30, 1995 (Unaudited)
________________________________________________________________________________
<TABLE>
<CAPTION>
UNREALIZED TOTAL
APPRECIATION STOCK-
COMMON RETAINED (DEPRECIATION) HOLDERS'
STOCK SURPLUS EARNINGS SECURITIES EQUITY
__________ _______ _________ _____________ ________
<S> <C> <C> <C> <C> <C>
January 1, 1995 $1,163,840 $1,200,000 $10,029,100 $(311,538) $12,081,402
Net income 1,008,643 1,008,643
Change in market value
of investment securities
available for sale, net
of income taxes 355,809 355,809
_________ _________ __________ ________ __________
September 30, 1995 $1,163,840 $1,200,000 $11,037,743 $ 44,271 $13,445,854
January 1, 1996 $4,655,360 $1,200,000 $ 7,481,589 $ 294,529 $13,631,478
Net income 1,176,768 1,176,768
Change in market value
of investment securities
available for sale, net
of income taxes (495,559) (495,559)
_________ _________ __________ _________ __________
September 30, 1996 $4,655,360 $1,200,000 $ 8,658,357 $(201,030) $14,312,687
</TABLE>
See Notes to Consolidated Financial Statements 6
CARDINAL BANKSHARES CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows
For the nine months ended September 30, 1996 and 1995 (Unaudited)
_______________________________________________________________________________
<TABLE>
<CAPTION>
NINE MONTHS
ENDED
SEPTEMBER 30,
_____________
1996 1995
____ ____
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 1,176,768 $ 1,008,643
Adjustments to reconcile net income
to net cash provided by operations:
Depreciation and amortization 123,600 153,450
Accretion of discounts on securities,
net of amortization of premiums (57,403) (51,539)
Amortization of loan fees (44,451) (89,976)
Provision for credit losses 250,000 370,000
Deferred income taxes 191,465 10,524
Net realized gains on securities (21,252) (4,728)
Net realized gains on sale of
other real estate (9,696) (23,055)
Deferred compensation & pension expense 47,332 53,576
Changes in assets and liabilities:
Accrued income 77,233 (178,794)
Other assets 288,523 (364,595)
Accrued interest payable 29,310 66,667
Other liabilities (129,671) 192,513
__________ ___________
Net cash provided by operating activities 1,921,758 1,142,686
__________ ___________
CASH FLOWS FROM INVESTING ACTIVITIES:
Net (increase) in federal funds sold (300,000) 475,000
Purchases of securities (13,758,292) (19,570,797)
Sale of securities 3,264,391
Maturities of securities 14,183,383 10,943,549
Net increase in loans (4,370,651) (394,329)
Proceeds from sale of other real estate 96,249 432,744
Purchases of properties and equipment (191,726) (89,068)
__________ __________
Net cash used in investing activities (1,076,646) (8,202,901)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase (decrease) in demand, NOW,
and savings deposits 313,078 (2,793,661)
Net increase (decrease) in time deposits (886,353) 10,154,307
Dividends paid --- ---
__________ __________
Net cash provided by financing activities (573,275) 7,360,646
__________ __________
Net increase in cash and cash equivalents 271,837 300,431
CASH AND CASH EQUIVALENTS, BEGINNING 1,907,215 2,211,184
__________ __________
CASH AND CASH EQUIVALENTS, ENDING $ 2,179,052 $ 2,511,615
</TABLE>
See Notes to Consolidated Financial Statements 7
CARDINAL BANKSHARES CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows, continued
For the nine months ended September 30, 1996 and 1995 (Unaudited)
_______________________________________________________________________________
<TABLE>
<CAPTION>
NINE MONTHS
ENDED
SEPTEMBER 30,
_____________
1996 1995
____ ____
<S> <C> <C>
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Interest paid $ 3,949,466 $ 3,642,665
__________ __________
Income taxes paid $ 182,964 $ 373,623
__________ __________
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING ACTIVITIES:
Other real estate acquired in
settlement of loans $ 7,616 $ 358,800
__________ __________
</TABLE>
See Notes to Consolidated Financial Statements 8
CARDINAL BANKSHARES CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
________________________________________________________________________________
ITEM 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
NOTE 1. BASIS OF PRESENTATION:
Cardinal Bankshares Corporation (the Company) was incorporated as a
Virginia corporation on March 12, 1996 to acquire the stock of The Bank of
Floyd (the Bank). The Bank was acquired by the Company on July 1, 1996 and
will be accounted for using the pooling of interests accounting method.
The consolidated financial statements as of September 30, 1996 and for
the periods ended September 30, 1996 and 1995 included herein, have been
prepared by Cardinal Bankshares Corporation, without audit, pursuant to the
rules and regulations of the Securities and Exchange Commission. In the
opinion of management, the information furnished in the interim consolidated
financial statements reflects all adjustments necessary to present fairly the
Company's consolidated financial position, results of operations, changes in
stockholders' equity and cash flows for such interim periods. Management
believes that all interim period adjustments are of a normal recurring nature.
These consolidated financial statements should be read in conjunction with the
Bank's audited financial statements and the notes thereto as of December 31,
1995, included in the Bank's Annual Report for the fiscal year ended December
31, 1995.
The Bank of Floyd and its wholly owned subsidiary, FBC, Inc. are organized
and incorporated under the laws of the Commonwealth of Virginia. As a state
chartered Federal Reserve member, the Bank is subject to regulation by the
Virginia Bureau of Financial Institutions and the Federal Reserve. FBC, Inc.'s
assets and operations consist primarily of a minority interest in a title
insurance company. The Bank serves the counties of Floyd, Montgomery, and
Roanoke, Virginia and the City of Roanoke, Virginia through two banking
offices.
All significant intercompany accounts and transactions have been elimi-
nated in consolidation. Certain prior year amounts have been reclassified to
conform to the current year presentation.
NOTE 2. ALLOWANCES FOR CREDIT LOSSES
The following is an analysis of the allowance for credit losses.
<TABLE>
<CAPTION>
1996 1995
____ ____
<S> <C> <C>
Balance at January 1 $ 1,134,182 $ 1,264,798
Provision charged to operations 250,000 370,000
Recoveries 31,859 17,080
Loans charged off (476,097) (233,912)
__________ __________
Balance at September 30 $ 939,944 $ 1,417,966
</TABLE>
9
NOTE 2. ALLOWANCES FOR CREDIT LOSSES, CONTINUED
Nonperforming loans consist of the following:
<TABLE>
<CAPTION>
SEPTEMBER 30, December 31,
1996 1995
____________ ___________
<S> <C> <C>
Nonaccrual loans $ 441,863 $ 390,907
Loans 90 days or more past due 262,000 57,155
Restructured loans 0 0
__________ __________
Total nonperforming loans $ 703,863 $ 448,062
</TABLE>
NOTE 3. COMMITMENTS AND CONTINGENCIES
The Bank's exposure to credit loss in the event of nonperformance by the
other party for commitments to extend credit and standby letters of credit is
represented by the contractual amount of those instruments. The Bank uses the
same credit policies in making commitments and conditional obligations as for
on-balance-sheet instruments. A summary of the Bank's commitments at September
30, 1996 and 1995 is as follows:
<TABLE>
<CAPTION>
1996 1995
____ ____
<S> <C> <C>
Commitments to extend credit $ 5,578,372 $ 6,028,101
Standby letters of credit 176,000 396,500
__________ __________
$ 5,754,372 $ 6,424,601
</TABLE>
NOTE 4. EARNINGS PER SHARE
Earnings per share are computed on the weighted average common shares out-
standing of 465,536 for the nine months ended September 30, 1996. The weighted
average common shares outstanding for the nine months ended September 30, 1995
have been restated to reflect a 4 for 1 stock split during 1995 resulting in
465,536 weighted average common shares outstanding for the period.
NOTE 5. NET INTEREST INCOME AND AVERAGE BALANCES (THOUSANDS)
The following schedule presents condensed average balances and the average
rates earned and paid by the Company for the nine months ended September 30,
1996 and September 30, 1995.
10
NOTE 5. NET INTEREST INCOME AND AVERAGE BALANCES (THOUSANDS), CONTINUED
<TABLE>
<CAPTION>
1996 1995
____ ____
INTEREST INTEREST
INCOME/ YIELD/ INCOME/ YIELD/
AVERAGE EXPENSE COST AVERAGE EXPENSE COST
_______ _______ _____ _______ _______ _____
<S> <C> <C> <C> <C> <C> <C>
Interest earning assets:
Loans, net $ 80,151 $ 5,549 9.25% $ 78,713 $ 5,410 9.25%
Taxable investment
securities 31,420 1,627 6.92 29,315 1,504 6.86
Nontaxable investment
securities 9,724 348 4.78 5,877 232 5.28
Federal funds sold
and securities
purchased with
agreements to resell 3,442 137 5.32 5,961 264 5.93
_______ ______ ____ _______ ______ ____
Total interest earning
assets $124,737 $ 7,661 8.20% $119,866 $ 7,410 8.26%
Interest bearing liabilities:
Demand deposits $ 8,201 $ 155 2.52% $ 8,437 $ 171 2.71%
Savings deposits 18,617 431 3.09 21,200 487 3.07
Time deposits 78,762 3,393 5.75 73,073 3,051 5.58
_______ ______ ____ _______ ______ ____
Total interest bearing
liabilities $105,580 $ 3,979 5.03% $102,710 $ 3,709 4.83%
_______ ______ ____ _______ ______ ____
Net interest income $ 3,682 $ 3,701
______ ______
Net interest differential 3.17% 3.43%
____ ____
Net yield on interest earning assets 3.94% 4.13%
____ ____
</TABLE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
For the quarter ended September 30, 1996, the Bank earned $401,106 in net
income compared to $370,858 for the quarter ended September 30, 1995. The in-
crease of $30,248 was due primarily to increases in net interest income and
other income.
11
RESULTS OF OPERATIONS, CONTINUED
For the nine month period ended September 30, 1996, the Bank earned
$1,176,768, an increase of $168,125 over the $1,008,643 earned for the nine
months ended September 30, 1995. The increase was primarily due to an increase
in other income and a reduction in the provision for credit losses which were
offset by an increase in income taxes due to an increase in net income.
Interest income was $2,591,475 and $7,660,848 for the quarter and nine
month periods ended September 30, 1996, respectively, compared to $2,583,046
and $7,409,720 for the respective periods of 1995. The quarterly increase was
due mainly to an increase of $1.5 million in average earning assets for the
quarter ended September 30, 1996 as compared to the quarter ended September 30,
1995. The nine month increase was due mainly to an increase of approximately
$4.9 million in average earning assets when compared to the nine months ended
September 30, 1995.
Interest expense for the quarter ended September 30, 1996 was $1,319,464
down $13,542 from $1,333,006 for the quarter ended September 30, 1995. The
decrease was due to a decrease of approximately $621,000 in average interest
bearing liabilities when compared to the quarter ended September 30, 1995.
Interest expense for the nine months ended September 30, 1996, increased
$269,443 to $3,978,776 from $3,709,333 for the nine months ended September 30,
1995. The increase was due to an increase of approximately $2.9 million in
average interest bearing liabilities and an increase of 20 basis points in the
rate paid on these liabilities when compared to the nine months ended September
30, 1995.
Net interest income increased $21,971 to $1,272,011 for the quarter ended
September 30, 1996 compared to $1,250,040 for the quarter ended September 30,
1995. The change in net interest income is the result of an overall increase
in net average earning assets of $2.1 million when compared to the quarter
ended September 30, 1995. Net interest income decreased $18,315 to $3,682,072
for the nine months ended September 30, 1996 from $3,700,387 for the nine
months ended September 30, 1995 as the interest margin earned on average
earning assets slipped from 4.13% for the nine months ended September 30, 1995
to 3.94% for the nine months ended September 30, 1996. This decrease in
interest margin was offset by an increase of $4.9 million in average earning
assets for the nine months ended September 30, 1996 when compared to the nine
months ended September 30, 1995.
The provision for credit losses was $75,000 for both the quarter ended
September 30, 1995 and September 30, 1996. The provision decreased by $120,000
to $250,000 from $370,000 for the nine months ended September 30, 1996 compared
to the nine months ended September 30, 1995. Management believes the provision
and the resulting allowance for credit losses is adequate.
Other income was $68,865 and $283,855 for the quarter and nine month
periods ended September 30, 1996 respectively, compared to $45,500 and $155,855
for the same periods in 1995. The quarterly increase was due mainly to an
increase of $15,464 in commissions on sales of title insurance, an increase of
$13,894 in net income earned on the operations of other real estate owned and
an increase in service charges on deposit accounts of $3,820 which were offset
by a decrease of $13,594 in gains on sales of securities. The nine month
increase was due to an increase of $68,209 in commissions on sale of title
insurance, an increase of $48,492 in net income earned on the operations of
other real estate owned and a $16,524 increase in gains on sales of securities.
12
RESULTS OF OPERATIONS, CONTINUED
Other expense stayed relatively flat for the quarter and nine month
periods ended September 30, 1996 compared to the same periods in 1995. The
quarterly increase was $3,610 (0.5%) while the nine month decrease was $14,321
(0.7%). The quarterly increase was due mainly to an increase of $18,664 in
occupancy and equipment expenses due to the installation of 2 Automated Teller
Machines and repairs and maintenance to the main office building, offset by a
decrease of $16,231 in legal and professional fees. The nine month decrease
was due to a decrease in FDIC premiums of $113,663 and a decrease in occupancy
and equipment expenses of $29,315 offset by a $132,188 increase in salaries and
benefits. The increase in salaries and benefits are attributable to normal
annual increases in base compensation plus the increasing costs of health
insurance and other employee benefits.
Income taxes increased $11,478 to $153,900 for the quarter ended September
30, 1996 from $142,422 for the quarter ended September 30, 1995 and $75,881 to
$460,032 for the nine month period ended September 30, 1996 from $384,151 for
the nine months ended September 30, 1995. The increases were attributed to the
higher level of income achieved for the quarter and nine month periods ended
September 30, 1996 compared to the same periods in 1995.
CHANGES IN FINANCIAL CONDITION
Total assets at September 30, 1996 were $130,955,890 compared to
$130,900,985 at December 31, 1995. Net loans have increased by $4.2 million
due to solid loan demand. The loans were funded by lower yielding investments
that had either matured or were sold. Deposits have dropped by $573,000 as
management held the line on the pricing of deposits and some of the more rate
sensitive certificates of deposit were not renewed.
CAPITAL ADEQUACY
Shareholder's equity amounted to $14,312,687 at September 30, 1996, an
increase of $681,209 over the December 31, 1995 balance of $13,631,478. The
increase was a result of the earnings for the nine months offset by a decrease
in the market value of securities that are classified as available for sale.
Regulatory guidelines relating to capital adequacy provide minimum risk-
based ratios at the Bank level which assess capital adequacy while encompassing
all credit risks, including those related to off-balance sheet activities. The
Bank of Floyd (a wholly owned subsidiary of Cardinal Bankshares Corporation)
exceeds all regulatory capital guidelines and is considered to be well
capitalized. At September 30, 1996 the Bank had a ratio of Tier 1 capital to
risk-weighted assets of 17.02%, a ratio of total capital to risk-weighted
assets of 18.12% and a leverage ratio of Tier 1 capital to average total
assets for the quarter ended September 30, 1996 of 11.07%.
13
PART II
OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
There are no matters pending legal proceedings to which the Company or any
of its subsidiaries is a party or of which any of their property is subject.
ITEM 2. CHANGES IN SECURITIES
(a) Not applicable.
(b) Not applicable
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
Not applicable.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
ITEM 5. OTHER INFORMATION
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
None.
(b) Reports on Form 8-K
None.
SIGNATURES
Pursuant to the requirements of the Exchange Act of 1934, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
CARDINAL BANKSHARES CORPORATION
Date: November 8, 1996 By: Ronald Leon Moore
Signature
President and Chief
Executive Officer
Date: November 8, 1996 By: James A. Chapman
Signature
Vice President and Chief
Financial Officer
14
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CARDINAL BANKSHARES AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET AT SEPTEMBER
30, 1996 AND THE CONSOLIDATED STATEMENT OF OPERATIONS FOR THE NINE MONTHS
ENDED SEPTEMBER 30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 2,179,052
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 2,050,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 26,703,179
<INVESTMENTS-CARRYING> 12,932,851
<INVESTMENTS-MARKET> 12,844,915
<LOANS> 83,727,728
<ALLOWANCE> (939,944)
<TOTAL-ASSETS> 130,955,890
<DEPOSITS> 115,963,363
<SHORT-TERM> 0
<LIABILITIES-OTHER> 679,840
<LONG-TERM> 0
0
0
<COMMON> 4,655,360
<OTHER-SE> 9,657,327
<TOTAL-LIABILITIES-AND-EQUITY> 130,955,890
<INTEREST-LOAN> 5,548,529
<INTEREST-INVEST> 1,975,194
<INTEREST-OTHER> 137,125
<INTEREST-TOTAL> 7,660,848
<INTEREST-DEPOSIT> 3,978,776
<INTEREST-EXPENSE> 0
<INTEREST-INCOME-NET> 3,682,072
<LOAN-LOSSES> 250,000
<SECURITIES-GAINS> 21,252
<EXPENSE-OTHER> 2,079,127
<INCOME-PRETAX> 1,636,800
<INCOME-PRE-EXTRAORDINARY> 1,636,800
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,176,768
<EPS-PRIMARY> 2.53
<EPS-DILUTED> 2.53
<YIELD-ACTUAL> 3.94
<LOANS-NON> 441,863
<LOANS-PAST> 262,000
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,134,182
<CHARGE-OFFS> 476,097
<RECOVERIES> 31,859
<ALLOWANCE-CLOSE> 939,944
<ALLOWANCE-DOMESTIC> 939,944
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
