2014

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

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

%


6.22

%

Commercial and industrial loans:










Commercial

4.72

%


5.24

%


5.98

%


6.08

%


5.80

%

Warehouse lines of credit

3.63

%


3.71

%


3.82

%


3.31

%


3.29

%

One- to four-family real estate

5.24

%


5.42

%


5.40

%


5.53

%


5.08

%

Home equity/home improvement

5.47

%


5.63

%


5.41

%


5.58

%


5.56

%

Other consumer loans

5.84

%


6.00

%


6.03

%


6.43

%


6.13

%

Loans held for sale 1

3.92

%


4.05

%


4.11

%


4.10

%


4.18

%

Loans receivable

5.05

%


5.20

%


5.34

%


5.48

%


5.23

%

Securities

1.79

%


1.74

%


1.85

%


1.97

%


2.12

%

Overnight deposits

0.23

%


0.25

%


0.23

%


0.46

%


0.22

%

Total interest-earning assets

4.27

%


4.37

%


4.34

%


4.36

%


4.13

%

Deposits:










Interest-bearing demand

0.40

%


0.43

%


0.61

%


0.84

%


0.94

%

Savings and money market

0.27

%


0.27

%


0.27

%


0.29

%


0.26

%

Time

1.22

%


1.03

%


1.11

%


1.17

%


1.39

%

FHLB advances and other borrowings

1.67

%


1.37

%


1.27

%


1.72

%


1.74

%

Total interest-bearing liabilities

0.82

%


0.76

%


0.80

%


0.93

%


1.02

%

Net interest spread

3.45

%


3.61

%


3.54

%


3.43

%


3.11

%

Net interest margin

3.64

%


3.77

%


3.70

%


3.62

%


3.30

%

Cost of deposits (including non-interest-bearing demand)

0.45

%


0.43

%


0.49

%


0.58

%


0.67

%

 

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

 


VIEWPOINT FINANCIAL GROUP, INC.

Supplemental Information- Non-GAAP Financial Measures (unaudited)



Ending Balances At


March 31, 2013


December 31, 2012


September 30, 2012


June 30, 2012


March 31, 2012

Calculation of Tangible Book Value per Share:

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

Total shareholders' equity

$

530,967



$

520,871



$

516,353



$

505,575



$

412,605


Less:  Goodwill

(29,650)



(29,650)



(29,650)



(29,203)



(818)


Identifiable intangible assets, net

(1,541)



(1,653)



(1,793)



(1,949)



(371)


Total tangible shareholders' equity

$

499,776



$

489,568



$

484,910



$

474,423



$

411,416












Shares outstanding at end of period

39,948,031



39,612,911



39,579,667



39,344,167



33,703,080












Book value per share- GAAP

$

13.29



$

13.15



$

13.05



$

12.85



$

12.24


Tangible book value per share- Non-GAAP

$

12.51



$

12.36



$

12.25



$

12.06



$

12.21












Calculation of Tangible Equity to Tangible Assets:










Total assets

$

3,373,636



$