ViewPoint Financial Group, Inc. Reports First Quarter 2013 Earnings, Continues Success of Commercial Loan Growth Strategy

Apr 24, 2013, 16:52 ET from ViewPoint Financial Group, Inc.

PLANO, Texas, April 24, 2013 /PRNewswire/ -- ViewPoint Financial Group, Inc. (NASDAQ: VPFG) (the "Company"), the holding company for ViewPoint Bank, N.A. (the "Bank"), today announced first quarter net income of $8.1 million, an increase of $986,000, or 13.9%, from the quarter ended March 31, 2012.  Compared to the fourth quarter of 2012, net income declined by $2.3 million, or 22.2%.  Basic and diluted earnings per share of $0.21 for the quarter ended March 31, 2013, declined by $0.01 from basic and diluted earnings per share of $0.22 for the quarter ended March 31, 2012.  Compared to the fourth quarter of 2012, basic and diluted earnings per share declined by $0.07 and $0.06, respectively, from basic and diluted earnings per share of  $0.28 and $0.27.

First Quarter 2013 Results

  • Continued success in commercial loan growth strategy:  Our commercial loan portfolio, consisting of commercial real estate and commercial and industrial loans, provided solid growth as we continue to shift our focus to commercial lending.  The commercial loan portfolio totaled $1.20 billion at March 31, 2013, up $81.6 million, or 7.3%, from December 31, 2012, and up $505.6 million from March 31, 2012.
  • Linked quarter decline in Warehouse Purchase Program loans:  The average balance of Warehouse Purchase Program loans declined $170.4 million, or 18.8%, from the fourth quarter of 2012.  Compared to the first quarter of 2012, Warehouse Purchase Program loans increased by $100.7 million, or 15.8%.
  • Net interest margin increased by 34 basis points compared to first quarter 2012: Due to changes in the earning asset mix and lower deposit and borrowing rates, the net interest margin increased by 34 basis points to 3.64% for the three months ended March 31, 2013, compared to 3.30% for the same period in 2012.  Compared to fourth quarter 2012, the net interest margin decreased by 13 basis points from 3.77%.
  • Net charge-offs decline: Net charge-offs totaled $292,000 for the first quarter of 2013, down from $1.8 million and $359,000, respectively, for the quarters ended December 31, 2012 and March 31, 2012.
  • Strong capitalization and continued dividend performance: Tangible common equity grew to $499.8 million, or 15.0% of tangible assets, at March 31, 2013, compared to $489.6 million, or 13.5% of tangible assets, at December 31, 2012 .  The Company declared a quarterly cash dividend of $0.10 per common share to be paid in May 2013.

"ViewPoint has continued to execute on our transformation to a commercial bank," said President and CEO Kevin Hanigan. "Our lending teams produced outstanding commercial loan growth in this highly competitive environment, and the investment we made last year in commercial lending talent is paying off."

Financial Highlights

At or For the Quarters Ended

March

December

March

(unaudited)

2013

2012

2012

(Dollars in thousands, except per share amounts)

Net interest income

$

28,525

$

31,528

$

23,490

Provision (credit) for loan losses

883

(17)

895

Non-interest income

5,859

6,494

6,730

Non-interest expense

20,873

21,705

18,452

Income tax expense

4,570

5,973

3,801

Net income

$

8,058

$

10,361

$

7,072

Basic earnings per common share

$

0.21

$

0.28

$

0.22

Weighted average common shares outstanding - basic

37,529,793

37,460,539

31,545,748

Estimated Tier 1 risk-based capital ratio1

19.56

%

21.67

%

25.22

%

Tangible common equity to tangible assets - Non-GAAP 2

14.95

%

13.48

%

13.53

%

Net interest margin

3.64

%

3.77

%

3.30

%

 

1 Calculated at the ViewPoint Financial Group, Inc. level, which is subject to the capital adequacy requirements of the Federal Reserve. The decline in our March 2013 ratio is primarily the result of a risk weighting change from 50% to 100% on our Warehouse Purchase Program loans.

2 See the section labeled "Supplemental Information- Non-GAAP Financial Measures" at the end of this document.

 

Net Interest Income and Net Interest Margin

For the Quarters Ended

March

December

March

(unaudited)

2013

2012

2012

(Dollars in thousands)

Net interest income

$

28,525

$

31,528

$

23,490

Net interest margin

3.64

%

3.77

%

3.30

%

Selected average balances:

Total earning assets

$

3,134,030

$

3,341,960

$

2,844,466

Total loans

2,405,825

2,556,806

1,859,751

Total securities

674,109

734,598

950,906

Total deposits

2,160,363

2,180,354

1,918,594

Total borrowings

590,238

770,627

610,255

Total non-interest-bearing demand deposits

367,217

358,707

213,220

 

First quarter net interest income was $28.5 million, a $5.0 million increase from the first quarter of 2012 and a $3.0 million decrease from the fourth quarter of 2012.  The increase from the first quarter of 2012 was primarily due to a $6.1 million increase in interest income on loans, as the average balance of loans increased by $546.1 million, or 29.4%.  The increase in average loan balances was primarily driven by a $470.5 million increase in average commercial real estate and commercial and industrial loans (which includes the impact of loans acquired in the Highlands acquisition) and a $76.5 million increase in average loans held for sale.  Interest income for the first quarter of 2013 did not include the full impact of $72.6 million in commercial real estate and commercial and industrial loans that were originated during the last week of March 2013 and had an allocated provision expense at March 31, 2013.

Accretion of interest associated with the Highlands acquisition, which was completed on April 2, 2012, contributed $945,000 to the increase in interest income on loans from the first quarter of 2012.  The increase in interest income on loans in the first quarter of 2013 compared to the same period last year was partially offset by a $2.0 million decline in interest income earned on securities, as the average balance of the securities portfolio decreased by $276.8 million, or 29.1%, for the first quarter of 2013 compared to the same period in 2012.  The decline in the securities portfolio was due to the sale of securities and normal paydowns.

The decrease in net interest income for the current period compared to the fourth quarter of 2012 was primarily due to a $2.9 million decrease in interest income earned on loans, driven primarily by a lower average balance in loans held for sale and lower yields earned on all loan portfolios.  The decline in net interest income from the fourth quarter of 2012 was partially offset by a $39.8 million increase in average commercial loans (including commercial real estate and commercial and industrial balances.)  The average balance in loans held for sale decreased by $170.4 million, or 18.8%, for the first quarter of 2013, compared to the fourth quarter of 2012.  Additionally, the average yield earned on loans decreased by 15 basis points, to 5.05% for the first quarter of 2013, compared to 5.20% for the fourth quarter of 2012.  

Interest expense for the first quarter of 2013 decreased by $992,000, or 16.9%, compared to the first quarter of 2012, primarily due to lower interest expense paid on deposits.  The average rate paid on interest-bearing demand deposits declined by 54 basis points to 0.40% for the quarter ended March 31, 2013, from 0.94% for the quarter ended March 31, 2012, resulting in a $638,000 decrease in interest expense.  Additionally, interest expense on time accounts decreased by $261,000, resulting from a $22.0 million decline in the average balance during the quarter ended March 31, 2013, compared to the same period in 2012, and a 17 basis point decline in the average rate for the comparable periods.  Deposit costs have continued to decline due to rate reductions in Absolute Checking and other interest-bearing accounts.  Compared to the fourth quarter of 2012, interest expense remained relatively flat, declining by $59,000, or 1.2%.

The net interest margin for the first quarter of 2013 was 3.64%, a 34 basis point increase from the first quarter of 2012 and a 13 basis point decrease from the fourth quarter of 2012.  The increase in the net interest margin for the first quarter of 2013 compared to the same period last year was primarily attributable to changes in the earning asset mix, lower deposit and borrowing rates paid and 11 basis points of accretion of interest related to the Highlands acquisition.  The decrease in the net interest margin compared to the fourth quarter of 2012 was primarily attributable to lower yields earned on commercial real estate and commercial and industrial loans, as well as the decline in the balance of loans held for sale. 

Non-interest Income

First quarter non-interest income was $5.9 million, an $871,000 decrease from the first quarter of 2012 and a $635,000 decrease from the fourth quarter of 2012.  The decrease from the first quarter of 2012 was primarily attributable to a $2.2 million gain on the sale of mortgage loans in the 2012 period, with no comparable gain in the 2013 period due to the sale of our mortgage loan company, ViewPoint Mortgage ("VPM"), in the third quarter of 2012.  The decrease from the fourth quarter of 2012 was primarily due to a $1.3 million decline in service charges and fees, which was driven by commercial loan prepayment penalty fees collected in the fourth quarter of 2012 that were not repeated in the first quarter of 2013, as well as a decline in Warehouse Purchase Program fee income as volume declined in that loan portfolio. 

These decreases were partially offset by increases in the value of an investment in a community development-oriented private equity fund used for Community Reinvestment Act purposes recognized in the first quarter of 2013 and the fourth quarter of 2012 of $784,000 and $388,000, respectively.

Non-interest Expenses

First quarter non-interest expense was $20.9 million, a $2.4 million increase from the first quarter of 2012 and a $832,000 decrease from the fourth quarter of 2012.  The increase in non-interest expense compared to the first quarter of 2012 was primarily due to a $1.2 million increase in salary and benefits expense, as a result of adding experienced staff through the Highlands acquisition, as well as new hires.  This increase was partially offset by salary and benefits savings resulting from the sale of VPM.  Compared to the first quarter of 2012, occupancy and equipment expense increased primarily due to the impact of the Highlands acquisition, while data processing and advertising expense increased as we continue the focus to improve our franchise value by investing in marketing, branding awareness and technology. 

The $832,000 decrease in non-interest expense for the first quarter of 2013 compared to the fourth quarter of 2012 reflected decreases in most non-interest expense categories.  In the fourth quarter of 2012, the Company increased its performance-based compensation resulting from improvements in all performance metrics, which led to higher salary expense for that period, as well as lower health care costs in the first quarter of 2013 compared to the fourth quarter of 2012. 

Financial Condition

Total loans held for investment increased by $54.3 million, or 3.2%, from December 31, 2012,  reflecting a 39.5% increase from March 31, 2012.  Loans held for sale decreased by $303.2 million, or 28.6%, from December 31, 2012.  Compared to March 31, 2012, loans held for sale increased by 3.1%. Compared to December 31, 2012, commercial real estate loans increased by $57.6 million, or 6.9%, reflecting a 43.8% increase from March 31, 2012, while commercial and industrial loans increased by $23.9 million, or 8.6%, reflecting a 330.2% increase from March 31, 2012.  Commercial real estate and commercial and industrial loans increased a combined 72.8% from the same period last year and a combined 7.3% compared to the fourth quarter of 2012.  

Total deposits increased by $35.3 million, or 1.6%, to $2.21 billion at March 31, 2013, from $2.18 billion at December 31, 2012.  On a year over year basis, deposits increased by $279.5 million, or 14.5%, which includes the impact of deposits acquired from Highlands.  Non-interest-bearing demand and savings and money market deposits increased by $35.0 million and $8.0 million, respectively, compared to December 31, 2012, which was partially offset by decreases of $6.8 million in interest-bearing demand deposits and $843,000 in time deposits.  

Total shareholders' equity increased by $10.1 million, or 1.9%, to $531.0 million at March 31, 2013, from $520.9 million at December 31, 2012.  The Company's tangible common equity ratio was 15.0% at March 31, 2013, an increase of 147 basis points from December 31, 2012 and an increase of 142 basis points from March 31, 2012.  

Credit Quality

At or For the Quarters Ended

March

December

March

(unaudited)

2013

2012

2012

(Dollars in thousands)

Net charge-offs

$

292

$

1,767

$

359

Net charge-offs/Average loans held for investment

0.07

%

0.43

%

0.12

%

Provision (credit) for loan losses

$

883

$

(17)

$

895

Non-performing loans ("NPLs")

27,721

27,203

22,427

NPLs/Total loans held for investment 1

1.59

%

1.61

%

1.79

%

Non-performing assets ("NPAs")

$

29,226

$

29,104

$

24,448

NPAs/Total assets

0.87

%

0.79

%

0.80

%

NPAs/Loans held for investment and foreclosed assets

1.67

1.72

1.94

Allowance for loan losses

$

18,642

$

18,051

$

18,023

Allowance for loan losses/Total loans held for investment 1

1.07

%

1.07

%

1.43

%

Allowance for loan losses/Total loans held for investment excluding acquired loans 2

1.19

1.23

1.43

Allowance for loan losses/NPLs 1

67.25

66.36

80.36

 

1 The March 2013 and December 2012 quarters reflect the impact of loans acquired in the Highlands acquisition, which were initially recorded at fair value, with no allocated allowance for loan losses.

2 For this ratio, total loans held for investment for the March 2013 and December 2012 periods exclude loans acquired from Highlands, which were initially recorded at fair value.

 

Our non-performing loans to total loans ratio at March 31, 2013, was 1.59%, compared to 1.61%  at December 31, 2012, and 1.79% at March 31, 2012.  Non-performing loans increased by $518,000 to $27.7 million at March 31, 2013, from $27.2 million at December 31, 2012.  Of the $27.7 million, $6.3 million consisted of loans acquired from Highlands, including three commercial lines of credit totaling $2.8 million.  Non-performing loans increased by $5.3 million from March 31, 2012, primarily due to the Highlands acquired loans referenced above.  Net charge-offs totaled $292,000 for the first quarter of 2013, compared to $1.8 million for the fourth quarter of 2012 and $359,000 for the first quarter of 2012. 

Subsequent Events

The Company is required under generally accepted accounting principles to evaluate subsequent events through the filing of its consolidated financial statements for the quarter ended March 31, 2013 on Form 10-Q.  As a result, the Company will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of March 31, 2013, and will adjust amounts preliminarily reported, if necessary.

Conference Call

The Company will also host an investor conference call to review these results on Thursday, April 25, 2013, at 2 p.m. Central Time. Participants are asked to call (toll-free) 1-888-317-6016 at least five minutes prior to the call.  International participants are asked to call 1-412-317-6016 and participants in Canada are asked to call (toll-free) 1-855-669-9657.  The call and corresponding presentation slides will be webcast live on the home page of the Company's website, www.viewpointfinancialgroup.com.  An audio replay will be available one hour after the conclusion of the call at 1-877-344-7529, Conference #10024997. This replay, as well as the webcast, will be available until the Company's next quarterly webcast/conference call. 

About ViewPoint Financial Group, Inc.

ViewPoint Financial Group, Inc. is the holding company for ViewPoint Bank, N.A. ViewPoint Bank, N.A. operates 31 banking offices in the Dallas/Fort Worth metropolitan area, including two First National Bank of Jacksboro locations in Jack and Wise Counties. For more information, please visit www.viewpointbank.com or www.viewpointfinancialgroup.com.

When used in filings by the Company with the Securities and Exchange Commission (the "SEC") in the Company's press releases or other public or shareholder communications, and in oral statements made with the approval of an authorized executive officer, the words or phrases "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," "intends" or similar expressions are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties, including, among other things: changes in economic conditions; legislative changes; changes in policies by regulatory agencies; fluctuations in interest rates; the risks of lending and investing activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for loan losses; the Company's ability to access cost-effective funding; fluctuations in real estate values and both residential and commercial real estate market conditions; demand for loans and deposits in the Company's market area; the industry-wide decline in mortgage production; competition; changes in management's business strategies; our ability to successfully integrate any assets, liabilities, customers, systems and management personnel we have acquired or may acquire into our operations and our ability to realize related revenue synergies and cost savings within expected time frames and any goodwill charges related thereto; and other factors set forth under Risk Factors in the Company's Form 10-K that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. The factors listed above could materially affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements.

The Company does not undertake - and specifically declines any obligation - to publicly release the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances occurring after the date of such statements. 

 

VIEWPOINT FINANCIAL GROUP, INC.

Consolidated Balance Sheets

March 31, 2013

December 31, 2012

September 30, 2012

June 30, 2012

March 31, 2012

(Dollars in thousands)

ASSETS

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Cash and due from financial institutions

$

25,724

$

34,227

$

24,429

$

30,407

$

16,507

Short-term interest-bearing deposits in other financial institutions

26,783

34,469

36,301

39,571

28,000

Total cash and cash equivalents

52,507

68,696

60,730

69,978

44,507

Securities available for sale, at fair value

315,438

287,034

316,780

467,515

411,515

Securities held to maturity

329,993

360,554

396,437

430,368

465,957

Total securities

645,431

647,588

713,217

897,883

877,472

Loans held for sale 1

757,472

1,060,720

1,014,445

925,637

734,408

Loans held for investment

1,745,737

1,690,769

1,651,639

1,600,556

1,256,113

Gross loans

2,503,209

2,751,489

2,666,084

2,526,193

1,990,521

Less: allowance for loan losses and deferred fees on loans held for investment

(18,282)

(17,565)

(19,719)

(18,822)

(17,627)

Net loans

2,484,927

2,733,924

2,646,365

2,507,371

1,972,894

FHLB and Federal Reserve Bank stock, at cost

31,607

45,025

43,383

45,241

32,924

Bank-owned life insurance

35,078

34,916

34,701

34,491

29,116

Premises and equipment, net

53,050

53,160

53,348

53,725

49,721

Goodwill

29,650

29,650

29,650

29,203

818

Other assets

41,386

50,099

54,639

54,964

33,660

Total assets

$

3,373,636

$

3,663,058

$

3,636,033

$

3,692,856

$

3,041,112

LIABILITIES AND SHAREHOLDERS' EQUITY

Non-interest-bearing demand

$

392,759

$

357,800

$

349,880

$

342,228

$

231,768

Interest-bearing demand

481,966

488,748

471,672

509,650

488,807

Savings and money market

888,874

880,924

897,515

885,550

762,089

Time

449,491

450,334

473,834

491,978

450,955

Total deposits

2,213,090

2,177,806

2,192,901

2,229,406

1,933,619

FHLB advances

564,221

892,208

852,168

875,102

632,512

Repurchase agreement and other borrowings

25,000

25,000

25,000

38,682

25,000

Accrued expenses and other liabilities

40,358

47,173

49,611

44,091

37,376

Total liabilities

2,842,669

3,142,187

3,119,680

3,187,281

2,628,507

Shareholders' equity

Common stock

399

396

396

393

337

Additional paid-in capital

373,492

372,168

369,904

367,938

280,139

Retained earnings

172,386

164,328

161,887

153,722

149,585

Accumulated other comprehensive income, net

2,239

1,895

2,449

2,171

1,560

Unearned Employee Stock Ownership Plan (ESOP) shares

(17,549)

(17,916)

(18,283)

(18,649)

(19,016)

Total shareholders' equity

530,967

520,871

516,353

505,575

412,605

Total liabilities and shareholders' equity

$

3,373,636

$

3,663,058

$

3,636,033

$

3,692,856

$

3,041,112

 

1 Loans held for sale for the June 2012 and March 2012 periods include loans originated by ViewPoint Mortgage.

 

VIEWPOINT FINANCIAL GROUP, INC.

Consolidated Quarterly Statements of Income (unaudited)

For the Quarters Ended

First Quarter 2013 Compared to:

Mar 31, 2013

Dec 31, 2012

Sep 30, 2012

Jun 30, 2012

Mar 31, 2012

Fourth Quarter 2012

First Quarter 2012

Interest and dividend income

(Dollars in thousands)

Loans, including fees

$

30,378

$

33,247

$

32,739

$

30,290

$

24,320

$

(2,869)

(8.6)%

$

6,058

24.9

%

Taxable securities

2,403

2,591

3,616

4,185

4,458

(188)

(7.3)

(2,055)

(46.1)

Nontaxable securities

474

472

473

473

473

2

0.4

1

0.2

Interest-bearing deposits in other financial institutions

31

31

29

38

19

12

63.2

FHLB and Federal Reserve Bank stock

133

140

151

141

106

(7)

(5.0)

27

25.5

33,419

36,481

37,008

35,127

29,376

(3,062)

(8.4)

4,043

13.8

Interest expense

Deposits

2,432

2,321

2,656

3,247

3,229

111

4.8

(797)

(24.7)

FHLB advances

2,261

2,423

2,515

2,415

2,454

(162)

(6.7)

(193)

(7.9)

Repurchase agreement

201

205

217

251

203

(4)

(2.0)

(2)

(1.0)

Other borrowings

4

1

28

(4)

(100.0)

N/M

4,894

4,953

5,389

5,941

5,886

(59)

(1.2)

(992)

(16.9)

Net interest income

28,525

31,528

31,619

29,186

23,490

(3,003)

(9.5)

5,035

21.4

Provision (credit) for loan losses

883

(17)

814

1,447

895

900

N/M

(12)

(1.3)

Net interest income after provision (credit) for loan losses

27,642

31,545

30,805

27,739

22,595

(3,903)

(12.4)

5,047

22.3

Non-interest income

Service charges and fees

4,291

5,562

4,885

4,827

4,238

(1,271)

(22.9)

53

1.3

Other charges and fees

212

142

144

165

128

70

49.3

84

65.6

Net gain on sale of mortgage loans

1,030

2,174

2,232

N/M

(2,232)

(100.0)

Bank-owned life insurance income

162

216

210

165

109

(54)

(25.0)

53

48.6

Gain (loss) on sale of available for sale securities

(177)

898

116

(177)

N/M

(177)

N/M

Gain (loss) on sale and disposition of assets

230

(241)

187

(56)

(81)

471

N/M

311

N/M

Impairment of goodwill

(818)

N/M

N/M

Other

1,141

815

465

1,940

104

326

40.0

1,037

997.1

5,859

6,494

7,819

8,513

6,730

(635)

(9.8)

(871)

(12.9)

Non-interest expense

Salaries and employee benefits

12,915

13,200

12,685

14,110

11,724

(285)

(2.2)

1,191

10.2

Acquisition costs

242

3,741

144

N/M

(144)

(100.0)

Advertising

513

599

379

490

285

(86)

(14.4)

228

80.0

Occupancy and equipment

1,790

1,934

2,009

1,952

1,470

(144)

(7.4)

320

21.8

Outside professional services

684

568

578

691

483

116

20.4

201

41.6

Regulatory assessments

579

661

668

624

581

(82)

(12.4)

(2)

(0.3)

Data processing

1,518

1,717

1,530

1,617

1,245

(199)

(11.6)

273

21.9

Office operations

1,648

1,831

1,834

1,934

1,545

(183)

(10.0)

103

6.7

Other

1,226

1,195

1,285

1,164

975

31

2.6

251

25.7

20,873

21,705

21,210

26,323

18,452

(832)

(3.8)

2,421

13.1

Income before income tax expense

12,628

16,334

17,414

9,929

10,873

(3,706)

(22.7)

1,755

16.1

Income tax expense

4,570

5,973

6,098

3,437

3,801

(1,403)

(23.5)

769

20.2

Net income

$

8,058

$

10,361

$

11,316

$

6,492

$

7,072

$

(2,303)

(22.2)%

986

13.9

%

 

VIEWPOINT FINANCIAL GROUP, INC.

Selected Financial Highlights (unaudited)

At Or For The Quarters Ended

March

December

March

2013

2012

2012

(Dollars in thousands, except share and per share amounts)

SHARE DATA:

Basic earnings per common share

$

0.21

$

0.28

$

0.22

Diluted earnings per common share

$

0.21

$

0.27

$

0.22

Dividends declared per share

$

¹

$

0.20

¹

$

0.06

Total shareholders' equity

$

530,967

$

520,871

$

412,605

Common shareholders' equity per share (book value per share)

$

13.29

$

13.15

$

12.24

Tangible book value per share- Non-GAAP2

$

12.51

$

12.36

$

12.21

Market value per share for the quarter:

High

$

21.75

$

21.80

$

15.65

Low

$

19.94

$

19.30

$

13.19

Close

$

20.11

$

20.94

$

15.38

Shares outstanding at end of period

39,948,031

39,612,911

33,703,080

Weighted average common shares outstanding- basic

37,529,793

37,460,539

31,545,748

Weighted average common shares outstanding- diluted

37,681,402

37,592,618

31,666,355

KEY RATIOS:

Return on average common shareholders' equity

6.11

%

7.96

%

6.88

%

Return on average assets

0.97

1.17

0.95

Efficiency ratio3

61.86

56.99

60.42

Estimated Tier 1 risk-based capital ratio4

19.56

21.67

25.22

Estimated total risk-based capital ratio4

20.29

22.47

26.33

Estimated Tier 1 leverage ratio4

15.16

13.97

13.79

Tangible equity to tangible assets- Non-GAAP2

14.95

13.48

13.53

Number of employees- full-time equivalent

566

557

577

 

1 The quarter ended December 2012 includes two dividend payments of $0.10 each, as the Company accelerated the payment of its first quarter 2013 dividend.

2 See the section labeled "Supplemental Information- Non-GAAP Financial Measures" at the end of this document.

3 Calculated by dividing total non-interest expense by net interest income plus non-interest income, excluding gain (loss) on assets, impairment of goodwill, amortization of intangible assets, gains (losses) from securities transactions and other non-recurring items.

4 Calculated at the ViewPoint Financial Group, Inc. level, which is subject to the capital adequacy requirements of the Federal Reserve. March 2013 ratios reflect a risk weighting change from 50% to 100% on our Warehouse Purchase Program loans.

 

VIEWPOINT FINANCIAL GROUP, INC.

Selected Loan Data (unaudited)

Ending Balances at

March 31, 2013

December 31, 2012

September 30, 2012

June 30, 2012

March 31, 2012

Loans:

(Dollars in thousands)

Loans held for sale 1

$

757,472

$

1,060,720

$

1,014,445

$

925,637

$

734,408

Commercial real estate

897,534

839,908

794,619

760,609

624,057

Commercial and industrial loans:

Commercial

271,605

245,799

226,391

180,706

51,244

Warehouse lines of credit

30,861

32,726

25,936

16,965

19,072

Total commercial and industrial loans

302,466

278,525

252,327

197,671

70,316

Consumer:

One- to four-family real estate

358,823

378,255

400,951

435,486

372,070

Home equity/home improvement

131,776

135,001

141,152

144,147

139,339

Other consumer loans

55,138

59,080

62,590

62,643

50,331

Total consumer

545,737

572,336

604,693

642,276

561,740

Gross loans held for investment

1,745,737

1,690,769

1,651,639

1,600,556

1,256,113

Gross loans

$

2,503,209

$

2,751,489

$

2,666,084

$

2,526,193

$

1,990,521

Non-performing assets:

Commercial real estate

$

12,696

$

13,609

$

16,572

$

16,378

$

15,774

Commercial and industrial

6,807

5,401

4,597

873

467

One- to four-family real estate

6,833

6,854

5,142

4,158

4,987

Home equity/home improvement

1,007

1,077

1,519

1,112

1,170

Other consumer loans

378

262

251

36

29

Total non-performing loans

27,721

27,203

28,081

22,557

22,427

Foreclosed assets

1,505

1,901

3,850

3,323

2,021

Total non-performing assets

$

29,226

$

29,104

$

31,931

$

25,880

$

24,448

Total non-performing assets to total assets

0.87

%

0.79

%

0.88

%

0.70

%

0.80

%

Total non-performing loans to total loans held for investment 2

1.59

%

1.61

%

1.70

%

1.41

%

1.79

%

Allowance for loan losses to non-performing loans 2

67.25

%

66.36

%

70.63

%

85.25

%

80.36

%

Allowance for loan losses to total loans held for investment 2

1.07

%

1.07

%

1.20

%

1.20

%

1.43

%

Allowance for loan losses to total loans held for investment excluding acquired loans 3

1.19

%

1.23

%

1.41

%

1.47

%

1.43

%

Troubled debt restructured loans ("TDRs"):

Performing TDRs:

Commercial real estate

$

3,372

$

3,384

$

3,087

$

3,087

$

3,087

Commercial and industrial

202

207

213

20

21

One- to four-family real estate

915

509

682

498

374

Home equity/home improvement

48

49

106

45

106

Other consumer loans

62

67

88

107

121

Total performing TDRs

$

4,599

$

4,216

$

4,176

$

3,757

$

3,709

Non-performing TDRs:4

Commercial real estate

$

11,786

$

11,218

$

8,849

$

8,952

$

9,063

Commercial and industrial

71

102

105

281

287

One- to four-family real estate

1,757

1,951

1,709

1,103

1,093

Home equity/home improvement

261

284

234

75

77

Other consumer loans

261

205

88

13

Total non-performing TDRs

$

14,136

$

13,760

$

10,985

$

10,411

$

10,533

Allowance for loan losses:

Balance at beginning of period

$

18,051

$

19,835

$

19,229

$

18,023

$

17,487

Provision expense (credit)

883

(17)

814

1,447

895

Charge-offs

(476)

(1,936)

(412)

(358)

(496)

Recoveries

184

169

204

117

137

Balance at end of period

$

18,642

$

18,051

$

19,835

$

19,229

$

18,023

Net charge-offs (recoveries)

Commercial real estate

$

87

$

185

$

2

$

$

Commercial and industrial

172

893

(31)

10

192

One- to four-family real estate

23

324

15

57

77

Home equity/home improvement

113

79

63

Other consumer loans

10

252

143

111

90

Total net charge-offs

$

292

$

1,767

$

208

$

241

$

359

 

1 Loans held for sale for the June 2012 and March 2012 periods include loans originated by ViewPoint Mortgage.

2 Beginning June 30, 2012, all quarters reflect the impact of loans acquired in the Highlands acquisition, which were initially recorded at fair value, with no allocated allowance for loan losses.

3 For this ratio, total loans held for investment for all quarters beginning June 2012 exclude loans acquired from Highlands, which were initially recorded at fair value.

4 Non-performing TDRs are included in the non-performing assets above.

 

VIEWPOINT FINANCIAL GROUP, INC.

Average Balances and Yields/Rates (unaudited)

For the Quarters Ended

March 31, 2013

December 31, 2012

September 30, 2012

June 30, 2012

March 31, 2012

Loans:

(Dollars in thousands)

Commercial real estate

$

839,155

$

805,362

$

762,521

$

724,775

$

582,710

Commercial and industrial loans:

Commercial

257,510

251,447

183,870

169,567

53,654

Warehouse lines of credit

26,037

26,072

22,639

16,013

15,865

One- to four-family real estate

371,674

386,424

407,216

430,696

371,257

Home equity/home improvement

133,291

137,789

143,125

145,095

140,754

Other consumer loans

57,164

60,435

63,142

62,192

50,635

Loans held for sale 1

738,234

908,603

886,743

681,095

661,688

Less: deferred fees and allowance for loan loss

(17,240)

(19,326)

(19,113)

(17,803)

(16,812)

Loans receivable

2,405,825

2,556,806

2,450,143

2,211,630

1,859,751

Securities

674,109

734,598

914,818

976,611

950,906

Overnight deposits

54,096

50,556

49,740

33,241

33,809

Total interest-earning assets

$

3,134,030

$

3,341,960

$

3,414,701

$

3,221,482

$

2,844,466

Deposits:

Interest-bearing demand

$

465,385

$

463,465

$

474,342

$

505,569

$

473,687

Savings and money market

877,690

888,410

894,916

892,844

759,590

Time

450,071

469,772

476,666

529,928

472,097

FHLB advances and other borrowings

590,238

770,627

863,949

626,055

610,255

Total interest-bearing liabilities

$

2,383,384

$

2,592,274

$

2,709,873

$

2,554,396

$

2,315,629

Total assets

$

3,322,899

$

3,529,665

$

3,607,101

$

3,427,807

$

2,975,818

Non-interest-bearing demand deposits

367,217

358,707

338,074

316,237

213,220

Total deposits

2,160,363

2,180,354

2,183,998

2,244,578

1,918,594

Total shareholders' equity

527,958

520,684

513,431

504,596

411,049

Yields/Rates:

Commercial real estate

5.88

%

6.17

%

6.44

%

6.41