2014

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%

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


$

12.85


$

12.24


$

12.06

Tangible book value per share- Non-GAAP

$

12.36


$

12.25


$

12.06


$

12.21


$

12.02











Calculation of Tangible Equity to Tangible Assets:










Total assets

$

3,663,058


$

3,636,033


$

3,692,856


$

3,041,112


$

3,180,578

Less:  Goodwill

(29,650)


(29,650)


(29,203)


(818)


(818)

Identifiable intangible assets, net

(1,653)


(1,793)


(1,949)


(371)


(420)

Total tangible assets

$

3,631,755


$

3,604,590


$

3,661,704


$

3,039,923


$

3,179,340











Equity to assets- GAAP

14.22%


14.20%


13.69%


13.57%


12.77%

Tangible common equity to tangible assets
- Non-GAAP

13.48%


13.45%


12.96%


13.53%


12.74%

 

SOURCE ViewPoint Financial Group, Inc.



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