ViewPoint Financial Group, Inc. Reports Fourth Quarter and Full Year 2012 Earnings

Loan Growth and Lower Deposit Cost Drives 64 Basis Point Increase in Net Interest Margin to 3.77%

Feb 07, 2013, 16:15 ET from ViewPoint Financial Group, Inc.

PLANO, Texas, Feb. 7, 2013 /PRNewswire/ -- ViewPoint Financial Group, Inc. (NASDAQ: VPFG) (the "Company"), the holding company for ViewPoint Bank, N.A. (the "Bank"), today announced fourth quarter net income of $10.4 million, an increase of $587,000, or 6%, from $9.8 million for the fourth quarter of 2011. Net income for the year ended December 31, 2012, was a record $35.2 million, an increase of $8.9 million, or 34%, from net income of $26.3 million for the year ended December 31, 2011.  Basic and diluted earnings per share of $0.98 for the year ended December 31, 2012, was an increase of $0.17 from $0.81 for the year ended December 31, 2011.

2012 Performance Highlights

  • Net interest margin expanded to 3.77% for the fourth quarter of 2012 and to 3.61% for the year
  • Loans held for investment increased 38% and loans held for sale increased 27% from 2011, reflecting linked quarter increases of 2% and 5%, respectively
  • Basic EPS of $0.28 for the fourth quarter of 2012 and annual EPS for 2012 of $0.98
  • Strong capitalization with tangible common equity of $490 million, or 13% of tangible assets

"2012 was an exciting year in the company's 60-year history," said President and CEO Kevin Hanigan. "We posted record earnings once again, dramatically increased commercial lending and improved on all our profitability metrics, most notably the net interest margin—all while in the midst of a merger. In addition, most of our loan growth was organic—it came from originations, rather than through the merger. And finally, in the fourth quarter, we made investments in our infrastructure and our employees in order to position ourselves for long-term growth."

Financial Highlights

At or For the Quarters Ended

December

September

December

(unaudited)

2012

2012

2011

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

Net interest income

$

31,528

$

31,619

$

24,157

Provision (credit) for loan losses

(17)

814

1,229

Non-interest income

6,494

7,819

10,238

Non-interest expense

21,705

21,210

19,544

Income tax expense

5,973

6,098

3,848

Net income

$

10,361

$

11,316

$

9,774

Basic earnings per common share

$

0.28

$

0.30

$

0.31

Weighted average common shares outstanding - basic

37,460,539

37,362,535

31,617,219

Estimated Tier 1 risk-based capital ratio1

21.67%

22.16%

24.40%

Tangible common equity to tangible assets - Non-GAAP 2

13.48

13.45

12.74

Net interest margin

3.77

3.70

3.13

1  Calculated at the ViewPoint Financial Group, Inc. level, which is subject to the capital adequacy requirements of the Federal Reserve.

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

 

 

Net Interest Income and Net Interest Margin

At or For the Quarters Ended

December

September

December

(unaudited)

2012

2012

2011

(Dollars in thousands)

Net interest income

$

31,528

$

31,619

$

24,157

Net interest margin

3.77%

3.70%

3.13%

Selected average balances:

Total earning assets

$

3,341,960

$

3,414,701

$

3,089,337

Total loans

2,556,806

2,450,143

1,897,756

Total securities

734,598

914,818

1,147,794

Total deposits

2,180,354

2,183,998

2,007,715

Total borrowings

770,627

863,949

750,202

Total non-interest-bearing deposits

358,707

338,074

204,458

Fourth quarter net interest income was $31.5 million, a $7.4 million increase from the fourth quarter of 2011 and a $91,000 decrease from the third quarter of 2012.  The increase from the fourth quarter of 2011 was primarily due to an $8.1 million increase in interest income on loans, as the average balance of loans increased by $659.1 million, or 35%.  The increase in average loan balances was driven by a $248.5 million increase in commercial real estate, a $225.6 million increase in commercial and industrial and a $171.9 million increase in loans held for sale.  Accretion associated with the Highlands acquisition contributed $1.1 million to the increase in the comparable periods.  The increase in interest income on loans was partially offset by a $3.1 million decline in interest income earned on securities, as the average balance of the securities portfolio declined by $413.2 million, or 36%, during the fourth quarter of 2012 compared to the same period in 2011. 

Interest expense for the fourth quarter of 2012 decreased by $2.2 million, or 31%, primarily due to lower interest expense paid on deposits.  The average rate of interest-bearing demand deposits declined 96 basis points, from 1.39% for the quarter ended December 31, 2011, to 0.43% for the quarter ended December 31, 2012, resulting in a $1.2 million decrease in interest expense.  Additionally, interest expense on time accounts decreased by $963,000,  as a result of an $89.4 million decline in the average balance during the quarter ended December 31, 2012, compared to the same period in 2011, and a 52 basis point decline in the average rate for the same periods.  Deposit costs have continued to decline due to rate reductions in Absolute Checking and other interest-bearing accounts. 

The $91,000 decline in net interest income for the fourth quarter of 2012 compared to the third quarter of 2012 was primarily due to a $72.7 million decrease in average earning assets for the comparable periods.  The average balance of the securities portfolio declined by $180.2 million during the fourth quarter of 2012, resulting in a $1.0 million decline in interest income.  This decline was offset by solid growth in the average balances of the commercial and industrial and commercial real estate loan portfolios, which increased by $71.0 million and $42.8 million, respectively, leading to a $708,000, or 5%, increase in the interest income earned on these two portfolios.

The net interest margin for the fourth quarter of 2012 was 3.77%, a 64 basis point increase from the fourth quarter of 2011 and a seven basis point increase from the third quarter of 2012.  The increase in the net interest margin was primarily attributable to changes in the earning asset mix, lower deposit and borrowing rates paid, and 12 basis points of accretion related to the Highlands acquisition.

Non-interest Income

Fourth quarter non-interest income was $6.5 million, a $3.7 million decrease from the fourth quarter of 2011 and a $1.3 million decrease from the third quarter of 2012.  The decrease from the fourth quarter of 2011 was primarily attributable to a gain on the sale of available for sale securities in the 2011 period, with no comparable gain in the 2012 period.  Additionally, net gain on the sale of mortgage loans decreased due to the sale of ViewPoint Mortgage ("VPM").

Non-interest Expenses

Fourth quarter non-interest expense was $21.7 million, a $2.2 million increase from the fourth quarter of 2011 and a $495,000 increase from the third quarter of 2012.  During 2012, we added experienced staff through the Highlands acquisition, as well as new hires, which increased salary and benefits expense.  This increase was partially offset by salary and benefits savings resulting from the sale of VPM.   During the fourth quarter of 2012, the Company continued its growth strategy by adding high level revenue producers in lending and treasury management, increasing its performance-based compensation resulting from improvements in all performance metrics, and improving our franchise by investing in marketing, branding awareness and technology. 

Financial Condition

Total loans held for investment increased by $462.7 million, or 38%, from December 31, 2011, reflecting a 2% increase from the linked quarter.  Loans held for sale increased by $226.4 million, or 27%, from December 31, 2011, reflecting a 5% increase from the linked quarter.  $239.8 million of the increase in loans held for investment was due to organic growth, while $222.9 million was due to the Highlands acquisition.  Compared to December 31, 2011, commercial real estate loans increased by $254.6 million, or 44%, reflecting a 6% increase from the linked quarter, while commercial and industrial loans increased by $207.9 million, or 294%, reflecting a 10% increase from the linked quarter.  Commercial real estate and commercial and industrial loans increased a combined 7% from the linked quarter.  

Total deposits increased by $214.3 million, or 11%, to $2.18 billion at December 31, 2012, from $1.96 billion at December 31, 2011, including $378.4 million in deposits acquired from Highlands.  On a linked quarter basis, deposits declined by $15.1 million, or 1%.  The decline in time deposits resulted from a pricing strategy designed to reduce our time deposit rates and improve our net interest margin and was partially offset by growth in non-interest-bearing demand accounts.

Total shareholders' equity increased by $114.6 million, or 28%, to $520.9 million at December 31, 2012, from $406.3 million at December 31, 2011, primarily due to the Highlands acquisition.  The Company's tangible common equity ratio was 13.48% at December 31, 2012, an increase of 74 basis points from December 31, 2011, and an increase of three basis points from September 30, 2012.  

 

Credit Quality

At or For the Quarters Ended

December

September

December

(unaudited)

2012

2012

2011

(Dollars in thousands)

Net charge-offs

$

1,767

$

208

$

277

Net charge-offs/Average loans held for investment

0.43%

0.05%

0.10%

Provision (credit) for loan losses

$

(17)

$

814

$

1,229

Non-performing loans ("NPLs")

27,203

28,081

23,098

NPLs/Total loans held for investment 1

1.61%

1.70%

1.88%

Non-performing assets ("NPAs")

$

29,104

$

31,931

$

25,391

NPAs/Total assets

0.79%

0.88%

0.80%

NPAs/Loans held for investment and foreclosed assets

1.72

1.93

2.06

Allowance for loan losses

$

18,051

$

19,835

$

17,487

Allowance for loan losses/Total loans held for investment 1

1.07%

1.20%

1.42%

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

1.23

1.41

1.42

Allowance for loan losses/NPLs 1

66.36

70.63

75.71

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

Total loans held for investment for the December and September 2012 periods exclude loans acquired from Highlands, which were initially recorded at fair value. 

Our non-performing loans to total loans ratio at December 31, 2012, was 1.61%, compared to 1.88%  at December 31, 2011, and 1.70% at September 30, 2012.  Non-performing loans increased by $4.1 million to $27.2 million at December 31, 2012, from $23.1 million at December 31, 2011.  Of the $27.2 million, $5.4 million consisted of loans acquired from Highlands, including three commercial lines of credit totaling $2.8 million.  Non-performing loans decreased by $878,000 from September 30, 2012, primarily due to a $3.0 million improvement in commercial real estate non-performing loans. 

Net charge-offs totaled $1.8 million for the fourth quarter of 2012, compared to $277,000 for the fourth quarter of 2011 and $208,000 for the third quarter of 2012.  Of the $1.8 million, $1.1 million was related to loans acquired from Highlands (initially recorded at fair value), which had additional credit deterioration after acquisition.  We feel our credit quality has improved due to continued improvement in economic conditions in our market areas, enhancements in loan underwriting and oversight, as well as the addition of highly experienced lending staff over the past year, both through the Highlands acquisition and new hires.

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 year ended December 31, 2012, on Form 10-K.  As a result, the Company will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of December 31, 2012, and will adjust amounts preliminarily reported, if necessary.

Conference Call

The Company will also host an investor conference call to review these results on Friday, February 8, 2013, at 10 a.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 #10023601. 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 community bank offices, 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. 

 

Consolidated Balance Sheets

December 31, 2012

September 30, 2012

June 30, 2012

March 31, 2012

December 31, 2011

(Dollars in thousands)

ASSETS

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Cash and due from financial institutions

$

34,227

$

24,429

$

30,407

$

16,507

$

16,661

Short-term interest-bearing deposits in other financial institutions

34,469

36,301

39,571

28,000

29,687

Total cash and cash equivalents

68,696

60,730

69,978

44,507

46,348

Securities available for sale, at fair value

287,034

316,780

467,515

411,515

433,745

Securities held to maturity

360,554

396,437

430,368

465,957

500,488

Total securities

647,588

713,217

897,883

877,472

934,233

Loans held for sale

1,060,720

1,014,445

925,637

734,408

834,352

Loans held for investment

1,690,769

1,651,639

1,600,556

1,256,113

1,228,028

Gross loans

2,751,489

2,666,084

2,526,193

1,990,521

2,062,380

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

(17,565)

(19,719)

(18,822)

(17,627)

(16,971)

Net loans

2,733,924

2,646,365

2,507,371

1,972,894

2,045,409

FHLB and Federal Reserve Bank stock, at cost

45,025

43,383

45,241

32,924

37,590

Bank-owned life insurance

34,916

34,701

34,491

29,116

29,007

Premises and equipment, net

53,160

53,348

53,725

49,721

50,261

Goodwill

29,650

29,650

29,203

818

818

Other assets

50,099

54,639

54,964

33,660

36,912

Total assets

$

3,663,058

$

3,636,033

$

3,692,856

$

3,041,112

$

3,180,578

LIABILITIES AND SHAREHOLDERS' EQUITY

Non-interest-bearing demand

$

357,800

$

349,880

$

342,228

$

231,768

$

211,670

Interest-bearing demand

488,748

471,672

509,650

488,807

498,253

Savings and money market

880,924

897,515

885,550

762,089

759,576

Time

450,334

473,834

491,978

450,955

493,992

Total deposits

2,177,806

2,192,901

2,229,406

1,933,619

1,963,491

FHLB advances

892,208

852,168

875,102

632,512

746,398

Repurchase agreement and other borrowings

25,000

25,000

38,682

25,000

25,000

Accrued expenses and other liabilities

47,173

49,611

44,091

37,376

39,380

Total liabilities

3,142,187

3,119,680

3,187,281

2,628,507

2,774,269

Shareholders' equity

Common stock

396

396

393

337

337

Additional paid-in capital

372,168

369,904

367,938

280,139

279,473

Retained earnings

164,328

161,887

153,722

149,585

144,535

Accumulated other comprehensive income, net

1,895

2,449

2,171

1,560

1,347

Unearned Employee Stock Ownership Plan (ESOP) shares

(17,916)

(18,283)

(18,649)

(19,016)

(19,383)

Total shareholders' equity

520,871

516,353

505,575

412,605

406,309

Total liabilities and shareholders' equity

$

3,663,058

$

3,636,033

$

3,692,856

$

3,041,112

$

3,180,578

 

 

 

Consolidated Statements of Income

Year Ended

December 31,

2012

2011

2010

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

Interest and dividend income

(unaudited)

Loans, including fees

$

120,596

$

88,238

$

88,550

Taxable securities

14,850

25,830

24,837

Nontaxable securities

1,891

1,892

1,528

Interest-bearing deposits in other financial institutions

117

170

402

FHLB and Federal Reserve Bank stock

538

94

68

137,992

116,224

115,385

Interest expense

Deposits

11,453

22,474

31,015

FHLB advances

9,807

9,882

11,723

Repurchase agreement

876

816

816

Other borrowings

33

474

599

22,169

33,646

44,153

Net interest income

115,823

82,578

71,232

Provision for loan losses

3,139

3,970

5,119

Net interest income after provision for loan losses

112,684

78,608

66,113

Non-interest income

Service charges and fees

19,512

18,556

18,505

Other charges and fees

579

723

711

Net gain on sale of mortgage loans

5,436

7,639

13,041

Bank-owned life insurance income

699

506

384

Gain on sale of available for sale securities

1,014

6,268

Loss on sale and disposition of assets

(191)

(798)

(365)

Impairment of goodwill

(818)

(271)

Other

3,325

1,925

1,188

29,556

34,548

33,464

Non-interest expense

Salaries and employee benefits

51,719

47,360

46,203

Acquisition costs

4,127

Advertising

1,753

1,519

1,285

Occupancy and equipment

7,365

5,966

5,907

Outside professional services

2,320

2,644

2,369

Regulatory assessments

2,534

2,401

3,235

Data processing

6,109

4,648

4,232

Office operations

7,144

5,972

5,790

Other

4,619

4,730

4,125

87,690

75,240

73,146

Income before income tax expense

54,550

37,916

26,431

Income tax expense

19,309

11,588

8,632

Net income

$

35,241

$

26,328

$

17,799

Weighted average common shares outstanding- basic

35,879,704

32,219,841

30,128,985

Weighted average common shares outstanding- diluted

35,998,345

32,283,107

30,131,960

Per share information:

Basic

$

0.98

$

0.81

$

0.59

Diluted

0.98

0.81

0.59

Cash dividends declared per share

0.40

1

0.20

0.16

1 Five dividends were paid in 2012, including the $0.10 per share prepayment of the dividend for the first quarter of 2013

 

 

 

Consolidated Quarterly Statements of Income (unaudited)

For the Quarters Ended

Fourth Quarter 2012 Compared to:

Dec 31, 2012

Sep 30, 2012

Jun 30, 2012

Mar 31, 2012

Dec 31, 2011

Third Quarter 2012

Fourth Quarter 2011

Interest and dividend income

(Dollars in thousands)

Loans, including fees

$

33,247

$

32,739

$

30,290

$

24,320

$

25,106

$

508

1.6%

$

8,141

32.4%

Taxable securities

2,591

3,616

4,185

4,458

5,690

(1,025)

(28.3)

(3,099)

(54.5)

Nontaxable securities

472

473

473

473

473

(1)

(0.2)

(1)

(0.2)

Interest-bearing deposits in other financial institutions

31

29

38

19

26

2

6.9

5

19.2

FHLB and Federal Reserve Bank stock

140

151

141

106

42

(11)

(7.3)

98

233.3

36,481

37,008

35,127

29,376

31,337

(527)

(1.4)

5,144

16.4

Interest expense

Deposits

2,321

2,656

3,247

3,229

4,429

(335)

(12.6)

(2,108)

(47.6)

FHLB advances

2,423

2,515

2,415

2,454

2,522

(92)

(3.7)

(99)

(3.9)

Repurchase agreement

205

217

251

203

205

(12)

(5.5)

Other borrowings

4

1

28

24

3

300.0

(20)

(83.3)

4,953

5,389

5,941

5,886

7,180

(436)

(8.1)

(2,227)

(31.0)

Net interest income

31,528

31,619

29,186

23,490

24,157

(91)

(0.3)

7,371

30.5

Provision (credit) for loan losses

(17)

814

1,447

895

1,229

(831)

(102.1)

(1,246)

(101.4)

Net interest income after provision for loan losses

31,545

30,805

27,739

22,595

22,928

740

2.4

8,617

37.6

Non-interest income

Service charges and fees

5,562

4,885

4,827

4,238

4,529

677

13.9

1,033

22.8

Other charges and fees

142

144

165

128

179

(2)

(1.4)

(37)

(20.7)

Net gain on sale of mortgage loans

1,030

2,174

2,232

2,101

(1,030)

(100.0)

(2,101)

(100.0)

Bank-owned life insurance income

216

210

165

109

103

6

2.9

113

109.7

Gain on sale of available for sale securities

898

116

2,853

(898)

(100.0)

(2,853)

(100.0)

Gain (loss) on sale and disposition of assets

(241)

187

(56)

(81)

(49)

(428)

(228.9)

(192)

391.8

Impairment of goodwill

(818)

Other

815

465

1,940

104

522

350

75.3

293

56.1

6,494

7,819

8,513

6,730

10,238

(1,325)

(16.9)

(3,744)

(36.6)

Non-interest expense

Salaries and employee benefits

13,200

12,685

14,110

11,724

12,213

515

4.1

987

8.1

Acquisition costs

242

3,741

144

(242)

(100.0)

Advertising

599

379

490

285

302

220

58.0

297

98.3

Occupancy and equipment

1,934

2,009

1,952

1,470

1,633

(75)

(3.7)

301

18.4

Outside professional services

568

578

691

483

518

(10)

(1.7)

50

9.7

Regulatory assessments

661

668

624

581

535

(7)

(1.0)

126

23.6

Data processing

1,717

1,530

1,617

1,245

1,282

187

12.2

435

33.9

Office operations

1,831

1,834

1,934

1,545

1,520

(3)

(0.2)

311

20.5

Other

1,195

1,285

1,164

975

1,541

(90)

(7.0)

(346)

(22.5)

21,705

21,210

26,323

18,452

19,544

495

2.3

2,161

11.1

Income before income tax expense

16,334

17,414

9,929

10,873

13,622

(1,080)

(6.2)

2,712

19.9

Income tax expense

5,973

6,098

3,437

3,801

3,848

(125)

(2.0)

2,125

55.2

Net income

$

10,361

$

11,316

$

6,492

$

7,072

$

9,774

$

(955)

(8.4)%

587

6.0%

 

 

 

Selected Financial Highlights (unaudited)

At Or For The Quarters Ended

At or For the Years Ended

December

September

December

December

December

2012

2012

2011

2012

2011

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

SHARE DATA:

Basic earnings per common share

$

0.28

$

0.30

$

0.31

$

0.98

$

0.81

Diluted earnings per common share

$

0.27

$

0.30

$

0.31

$

0.98

$

0.81

Dividends declared per share

$

0.20

1

$

0.08

$

0.05

$

0.40

$

0.20

Total shareholders' equity

$

520,871

$

516,353

$

406,309

$

520,871

$

406,309

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

$

13.15

$

13.05

$

12.06

$

13.15

$

12.06

Tangible book value per share- Non-GAAP2

$

12.36

$

12.25

$

12.02

$

12.36

$

12.02

Market value per share for the quarter:

High

$

21.80

$

19.50

$

13.29

$

21.80

$

13.29

Low

$

19.30

$

15.88

$

11.16

$

19.30

$

11.16

Close

$

20.94

$

19.17

$

13.01

$

20.94

$

13.01

Shares outstanding at end of period

39,612,911

39,579,667

33,700,399

39,612,911

33,700,399

Weighted average common shares outstanding- basic

37,460,539

37,362,535

31,617,219

35,879,704

32,219,841

Weighted average common shares outstanding- diluted

37,592,618

37,466,031

31,681,326

35,998,345

32,283,107

KEY RATIOS:

Return on average common shareholders' equity

7.96%

8.82%

9.63%

7.23%

6.45%

Return on average assets

1.17

1.25

1.22

1.04

0.89

Efficiency ratio3

57.31

55.37

62.27

61.32

67.81

Estimated Tier 1 risk-based capital ratio4

21.67

22.16

24.40

21.67

24.40

Estimated total risk-based capital ratio4

22.47

23.08

25.46

22.47

25.46

Estimated Tier 1 leverage ratio4

13.97

13.54

12.58

13.97

12.58

Tangible equity to tangible assets- Non-GAAP2

13.48

13.45

12.74

13.48

12.74

Number of employees- full-time equivalent

557

555

584

557

584

1 Two dividend payments of $0.10 each

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 foreclosed assets, impairment of goodwill, gains 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. 

 

 

 

Ending Balances at

December 31, 2012

September 30, 2012

June 30, 2012

March 31, 2012

December 31, 2011

Loans:

(Dollars in thousands)

Loans held for sale

$

1,060,720

$

1,014,445

$

925,637

$

734,408

$

834,352

Commercial real estate

839,908

794,619

760,609

624,057

585,328

Commercial and industrial loans:

Commercial

245,799

226,391

180,706

51,244

54,479

Warehouse lines of credit

32,726

25,936

16,965

19,072

16,141

Total commercial and industrial loans

278,525

252,327

197,671

70,316

70,620

Consumer:

One- to four-family real estate

378,255

400,951

435,486

372,070

379,944

Home equity/home improvement

135,001

141,152

144,147

139,339

140,966

Other consumer loans

59,080

62,590

62,643

50,331

51,170

Total consumer

572,336

604,693

642,276

561,740

572,080

Gross loans held for investment

1,690,769

1,651,639

1,600,556

1,256,113

1,228,028

Gross loans

$

2,751,489

$

2,666,084

$

2,526,193

$

1,990,521

$

2,062,380

Non-performing assets:

Commercial real estate

$

13,609

$

16,572

$

16,378

$

15,774

$

16,076

Commercial and industrial

5,401

4,597

873

467

430

One- to four-family real estate

6,854

5,142

4,158

4,987

5,340

Home equity/home improvement

1,077

1,519

1,112

1,170

1,226

Other consumer loans

262

251

36

29

26

Total non-performing loans

27,203

28,081

22,557

22,427

23,098

Foreclosed assets

1,901

3,850

3,323

2,021

2,293

Total non-performing assets

$

29,104

$

31,931

$

25,880

$

24,448

$

25,391

Total non-performing assets to total assets

0.79%

0.88%

0.70%

0.80%

0.80%

Total non-performing loans to total loans held for investment

1.61%

1.70%

1.41%

1.79%

1.88%

Allowance for loan losses to non-performing loans

66.36%

70.63%

85.25%

80.36%

75.71%

Allowance for loan losses to total loans held for investment

1.07%

1.20%

1.20%

1.43%

1.42%

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

1.23%

1.41%

1.47%

1.43%

1.42%

Troubled debt restructured loans ("TDRs"):

Performing TDRs:

Commercial real estate

$

3,384

$

3,087

$

3,087

$

3,087

$

2,860

Commercial and industrial

207

213

20

21

26

One- to four-family real estate

509

682

498

374

136

Home equity/home improvement

49

106

45

106

107

Other consumer loans

67

88

107

121

142

Total performing TDRs

$

4,216

$

4,176

$

3,757

$

3,709

$

3,271

Non-performing TDRs:

Commercial real estate

$

11,218

$

8,849

$

8,952

$

9,063

$

9,266

Commercial and industrial

102

105

281

287

212

One- to four-family real estate

1,951

1,709

1,103

1,093

843

Home equity/home improvement

284

234

75

77

81

Other consumer loans

205

88

13

18

Total non-performing TDRs

$

13,760

$

10,985

$

10,411

$

10,533

$

10,420

Allowance for loan losses:

Balance at beginning of period

$

19,835

$

19,229

$

18,023

$

17,487

$

16,535

Provision expense (credit)

(17)

814

1,447

895

1,229

Charge-offs

(1,936)

(412)

(358)

(496)

(408)

Recoveries

169

204

117

137

131

Balance at end of period

$

18,051

$

19,835

$

19,229

$

18,023

$

17,487

Net charge-offs (recoveries)

Commercial real estate

$

185

$

2

$

$

$

Commercial and industrial

893

(31)

10

192

(18)

One- to four-family real estate

324

15

57

77

161

Home equity/home improvement

113

79

63

72

Other consumer loans

252

143

111

90

62

Total net charge-offs

$

1,767

$

208

$

241

$

359

$

277

 

 

 

Average Balances and Yields/Rates (unaudited)

For the Quarters Ended

December 31, 2012

September 30, 2012

June 30, 2012

March 31, 2012

December 31, 2011

Loans:

(Dollars in thousands)

Commercial real estate

$

805,362

$

762,521

$

724,775

$

582,710

$

556,909

Commercial and industrial loans:

Commercial

251,447

183,870

169,567

53,654

46,130

Warehouse lines of credit

26,072

22,639

16,013

15,865

5,796

One- to four-family real estate

386,424

407,216

430,696

371,257

377,106

Home equity/home improvement

137,789

143,125

145,095

140,754

140,000

Other consumer loans

60,435

63,142

62,192

50,635

51,225

Loans held for sale

908,603

886,743

681,095

661,688

736,745

Less: deferred fees and allowance for loan loss

(19,326)

(19,113)

(17,803)

(16,812)

(16,155)

Loans receivable

2,556,806

2,450,143

2,211,630

1,859,751

1,897,756

Securities

734,598

914,818

976,611

950,906

1,147,794

Overnight deposits

50,556

49,740

33,241

33,809

43,787

Total interest-earning assets

$

3,341,960

$

3,414,701

$

3,221,482

$

2,844,466

$

3,089,337

Deposits:

Interest-bearing demand

$

463,465

$

474,342

$

505,569

$

473,687

$

485,897

Savings and money market

888,410

894,916

892,844

759,590

758,191

Time

469,772

476,666

529,928

472,097

559,169

FHLB advances and other borrowings

770,627

863,949

626,055

610,255

750,202

Total interest-bearing liabilities

$

2,592,274

$

2,709,873

$

2,554,396

$

2,315,629

$

2,553,459

Total assets

$

3,529,665

$

3,607,101

$

3,427,807

$

2,975,818

$

3,216,502

Non-interest-bearing demand deposits

358,707

338,074

316,237

213,220

204,458

Total deposits

2,180,354

2,183,998

2,244,578

1,918,594

2,007,715

Total shareholders' equity

520,684

513,431

504,596

411,049

406,139

Yields/Rates:

Commercial real estate

6.17%

6.44%

6.41%

6.22%

6.39%

Commercial and industrial loans:

Commercial

5.24%

5.98%

6.08%

5.80%

6.24%

Warehouse lines of credit

3.71%

3.82%

3.31%

3.29%

3.43%

One- to four-family real estate

5.42%

5.40%

5.53%

5.08%

5.16%

Home equity/home improvement

5.63%

5.41%

5.58%

5.56%

5.67%

Other consumer loans

6.00%

6.03%

6.43%

6.13%

6.47%

Loans held for sale

4.05%

4.11%

4.10%

4.18%

4.22%

Loans receivable

5.20%

5.34%

5.48%

5.23%

5.29%

Securities

1.74%

1.85%

1.97%

2.12%

2.16%

Overnight deposits

0.25%

0.23%

0.46%

0.22%

0.24%

Total interest-earning assets

4.37%

4.34%

4.36%

4.13%

4.06%

Deposits:

Interest-bearing demand

0.43%

0.61%

0.84%

0.94%

1.39%

Savings and money market

0.27%

0.27%

0.29%

0.26%

0.30%

Time

1.03%

1.11%

1.17%

1.39%

1.56%

FHLB advances and other borrowings

1.37%

1.27%

1.72%

1.74%

1.47%

Total interest-bearing liabilities

0.76%

0.80%

0.93%

1.02%

1.12%

Net interest spread

3.61%

3.54%

3.43%

3.11%

2.94%

Net interest margin

3.77%

3.70%

3.62%

3.30%

3.13%

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

0.43%

0.49%

0.58%

0.67%

0.88%

 

 

 

Supplemental Information- Non-GAAP Financial Measures (unaudited)

Ending Balances At

December 31, 2012

September 30, 2012

June 30, 2012

March 31, 2012

December 31, 2011

Calculation of Tangible Book Value per Share:

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

Total shareholders' equity

$

520,871

$

516,353

$

505,575

$

412,605

$

406,309

Less:  Goodwill

(29,650)

(29,650)

(29,203)

(818)

(818)

Identifiable intangible assets, net

(1,653)

(1,793)

(1,949)

(371)

(420)

Total tangible shareholders' equity

$

489,568

$

484,910

$

474,423

$

411,416

$

405,071

Shares outstanding at end of period

39,612,911

39,579,667

39,344,167

33,703,080

33,700,399

Book value per share- GAAP

$

13.15

$

13.05

$