“Headquartered in Virginia, Cardinal Financial Corp. (CFNL) serves the Washington metropolitan area through 27 offices. The company also operates a residential mortgage-lending business with 10 locations and offers trust, brokerage, and asset-management services. Cardinal earns an Overall Quadrix® score of 97, versus an average of 59 for the 288 regional banks in our research universe.
“The stock scores above 80 in three key Quadrix categories — Momentum (89), Value (84) and Quality (85). Cardinal posted impressive results in 2011, with per-share earnings up 52% to $0.94. Total assets soared 26%; deposits rose 15%; and loans held for investment increased 16%. On December 31, nonperforming assets as a percentage of total assets were a reasonable 0.69%. For 2012, Wall Street expects per-share earnings of $0.95, up 1%. That figure seems low given the company’s operating momentum. Cardinal Financial Corp. is being initiated as a Buy.”
Richard J. Moroney, CFA, Upside, April 2, 2012
