Cardinal Financial Corp. in Tysons Corner, Va., reported that its first-quarter profit rose 37% from a year earlier, to $5.2 million, as the company reported lower credit costs and higher income.

The $2 billion-asset company said Wednesday that net interest income rose 15.6% from a year earlier, to $17.7 million, as it did more lending and lowered deposit rates. Cardinal's net interest margin expanded 27 basis points from a year earlier, to 3.67%.

The quarterly results included a $450,000 penalty for the prepayment of $15 million of Federal Home Loan Bank advances that had an average cost of 2.81%. Credit costs were also down. The loan-loss provision fell 54% from a year earlier, to $1.1 million.

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