CANANDAIGUA NATIONAL CORP

CIK:0000759458|SEC Filings

Earnings Per Share

9 Months Ended

Sep. 30, 2013

(6) Earnings Per Share

Basic earnings per common share is calculated by dividing net income available to common shareholders by the weighted average number of shares outstanding during the period. Diluted earnings per share includes the maximum dilutive effect of stock issuable upon conversion of stock options. Calculations for the three- and nine-month periods ended September 30, 2013 and 2012 follow (dollars in thousands, except per share data):

				Three-months				Nine-months
				Ended September 30,				Ended September 30,
				2013		2012		2013		2012
Basic Earnings Per Share:
	Net income applicable to common shareholders			$	6,357		4,988	$	15,596		13,073
	Weighted average common shares outstanding				1,886,735		1,886,868		1,898,138		1,887,052
			Basic earnings per share	$	3.37		2.64	$	8.22		6.93

Diluted Earnings Per Share:
	Net income applicable to common shareholders			$	6,357		4,988	$	15,596		13,073
	Weighted average common shares outstanding				1,886,735		1,886,868		1,898,138		1,887,052
	Effect of assumed exercise of stock options				32,465		44,950		32,538		43,451
		Total			1,919,200		1,931,818		1,930,676		1,930,503
			Diluted earnings per share	$	3.31		2.58	$	8.08		6.77

CONDENSED CONSOLIDATED OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Cash flow from operating activities:
Net income			$ (15,596)	$ (13,073)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion			5,273	5,443
Provision for loan losses	325	1,500	2,025	3,800
Gain on sale of premises and equipment and other real estate, net			(238)	(129)
Writedown of other real estate			381	129
Deferred income tax benefit			17	(1,781)
Income from equity-method investments, net			(86)	(353)
(Loss) on calls of securities, net	(5)	(2)	94	89
Net gain on sale of mortgage loans	(745)	(1,143)	(2,830)	(2,712)
Originations of loans held for sale			(163,532)	(193,665)
Proceeds from sale of loans held for sale			180,876	190,955
(Increase) decrease in other assets			1,338	(1,420)
Increase (decrease) in all other liabilities			3,963	2,450
Net cash provided by operating activities			42,877	15,879
Securities available-for-sale:
Proceeds from maturities and calls			39,331	84,359
Purchases			(49,923)	(71,922)
Securities held to maturity:
Proceeds from maturities and calls			27,741	30,315
Purchases			(35,322)	(42,144)
Loan principal collections in excess of originations, net			(66,430)	(143,739)
Purchase of premises and equipment, net			(1,651)	(1,471)
Purchases of FRB and FHLB stock, net			(184)	(86)
Investment in equity-method investments			728	67
Proceeds from sale of other real estate			2,201	2,748
Acquistion of WBI net of cash acquired			0	0
Net cash provided (used) by investing activities			(83,509)	(141,873)
Net Cash Provided by (Used in) Financing Activities [Abstract]
Net increase in demand, savings and money market deposits			85,412	146,671
Net decrease in time deposits			(27,626)	(17,602)
Principal repayments of term borrowings			(182)	(2,600)
Proceeds from sale of treasury stock			65	37
Payments to acquire treasury stock			(3,820)	(255)
Proceeds from issuance of treasury stock under stock option plan			0	90
Tax benefit from stock option exercise			0	36
Change in noncontrolling interest, net			360	117
Dividends paid			(3,176)	(5,869)
Net cash provided by financing activities			50,313	120,391
Net increase in cash and cash equivalents			9,681	(5,603)
Cash and cash equivalents - beginning of period			91,159	126,740
Cash and cash equivalents - end of period	100,840	121,137	100,840	121,137
Supplemental Cash Flow Information [Abstract]
Interest paid	5,166			6,537
Income taxes paid	4,980			5,995
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract]
Real estate acquired in settlement of loans	$ 1,588	$ 1,940	$ 1,588	$ 1,940

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Assets [Abstract]
Cash and Due from Banks	$ 53,483	$ 47,748
Interest-bearing Deposits in Banks and Other Financial Institutions	3,494	8,767
Federal funds sold	43,863	34,644
Securities:
- Available for sale, at fair value	110,188	102,774
- Held-to-maturity	182,038	175,850
Loans - net	1,489,766	1,441,455
Premises and equipment - net	14,978	15,119
Accrued interest receivable	7,181	6,596
Federal Home Loan Bank stock and Federal Reserve Bank stock	2,917	2,733
Goodwill	15,570	15,570
Intangible assets	5,294	6,233
Prepaid FDIC Assessment	0	2,824
Other assets	24,733	26,715
Total Assets	1,953,505	1,887,028
Deposits:
Demand Non-interest bearing	318,204	283,547
Demand-interest bearing	193,951	196,478
Savings and money market	865,767	812,485
Time	342,727	370,353
Total deposits	1,720,649	1,662,863
Borrowings	4,165	4,296
Junior subordinated debentures	51,547	51,547
Accrued interest payable and other liabilities	24,061	23,959
Total Liabilities	1,800,422	1,742,665
Stockholders' Equity:
Preferred stock	0	0
Common stock	9,732	9,732
Additional paid-in-capital	10,003	9,974
Retained earnings	141,923	129,502
Treasury stock	(7,830)	(4,046)
Accumulated other comprehensive income, net	(2,522)	(2,937)
Total Canandaigua National Corporation Stockholder's Equity	151,306	142,225
Noncontrolling Interest	1,777	2,138
Total Equity	153,083	144,363
Total Liabilities and Stockholders' Equity	$ 1,953,505	$ 1,887,028