Asset Surge Fuels Earnings Growth at Cardinal of Virginia

Cardinal Financial Corp.’s fourth-quarter earnings more than doubled from a year earlier, to $8.2 million, as its net interest income jumped 23%.

The Tysons Corner, Va.-based company also reported on Wednesday that it earned $28 million for 2011, up almost 52% from 2010.

The company’s net interest income totaled $22.7 million for the quarter thanks largely to a 26% year-over-year increase in earning assets, to $2.6 billion, and yields that decreased less than associated expenses. Loans held for sale totaled $529.5 million, up 157% from a year earlier

This asset growth was funded mainly by a 26.5% increase in deposits from short-term brokered certificates of deposit and a nearly 15% increase in demand deposits.

Noninterest income for 2011 increased by 25%, to $34.3 million, from the previous year. This was primarily due to a 33% jump in revenues from mortgage banking activities jumping, to $25.6 million. The company has hired dozens of mortgage brokers in the last year as it has aimed it to capture market share from larger lenders that have been scaling back mortgage lending.

Cardinal's shares were trading at $10.86 late Wednesday, up 3.3% from Tuesday's close.