PR Newswire: news distribution, targeting and monitoring
2014

ViewPoint Financial Group, Inc. Reports Second Quarter 2013 Earnings, Advances Commercial Bank Strategy

Share with Twitter Share with LinkedIn

PLANO, Texas, July 23, 2013 /PRNewswire/ -- ViewPoint Financial Group, Inc. (NASDAQ: VPFG) (the "Company"), the holding company for ViewPoint Bank, N.A. (the "Bank"), today announced net income of $8.2 million for the quarter ended June 30, 2013, an increase of $1.7 million, or 25.9%, from the quarter ended June 30, 2012. Compared to the first quarter of 2013, net income increased by $116,000, or 1.4%. Basic and diluted earnings per share increased $0.04 to $0.21 for the quarter ended June 30, 2013, from $0.17 for the quarter ended June 30, 2012, while earnings per share did not change on a linked quarter basis.

Second Quarter 2013 Results

  • Solid commercial loan growth continues, driving shift in earning asset revenue: Our commercial loan portfolio, consisting of commercial real estate and commercial and industrial loans, totaled $1.3 billion at June 30, 2013, up $117.8 million, or 9.8%, from March 31, 2013, and up $359.5 million, or 37.5%, from June 30, 2012. Interest income on the commercial loan portfolio increased $3.6 million, or 24.9%, from the quarter ended June 30, 2012, representing a shift in earning asset revenue. Commercial loans generated 50.7% of the Company's interest income earned during the second quarter of 2013, compared to 40.8% of interest income earned during the same quarter in 2012.
  • Net interest margin increased by ten basis points compared to the second quarter of 2012: Improvements in the earning asset mix and lower deposit and borrowing rates drove a ten basis point increase in the net interest margin to 3.72% for the three months ended June 30, 2013, compared to 3.62% for the same period in 2012.  Compared to the first quarter of 2013, the net interest margin increased by eight basis points, from 3.64% for the three months ended March 31, 2013.
  • Asset quality improved, positively impacting earnings: During the second quarter of 2013, two commercial real estate loans that were classified as troubled debt restructurings were paid in full, resulting in the recovery of $480,000 of accumulated interest, as well as the recapture of $91,000 in allowance for loan losses that was previously allocated to these two loans. These transactions reduced troubled debt restructurings by $5.9 million, which includes a $2.5 million reduction in non-performing loans.
  • Linked quarter increase in Warehouse Purchase Program loans: Warehouse Purchase Program loans totaled $904.2 million at June 30, 2013, up $146.8 million from March 31, 2013. Compared to June 30, 2012, balances declined by $4.3 million.

"I am very pleased with our quarter," said President and CEO Kevin Hanigan. "Our key ratios (NIM, Efficiency Ratio, ROA, and ROE) are all appreciably up from the second quarter of 2012, resulting in a 24% earnings per share increase that was fueled by a 38% increase in commercial loans."

Financial Highlights



At or For the Quarters Ended


June


March


June

(unaudited)

2013


2013


2012


(Dollars in thousands, except per share amounts)

Net interest income

$

30,438



$

28,525



$

29,186


Provision for loan losses

1,858



883



1,447


Non-interest income

5,743



5,859



8,513


Non-interest expense

21,703



20,873



26,323


Income tax expense

4,446



4,570



3,437


Net income

$

8,174



$

8,058



$

6,492








Basic earnings per common share

$

0.21



$

0.21



$

0.17


Weighted average common shares outstanding - basic

37,545,050



37,529,793



37,116,322


Estimated Tier 1 risk-based capital ratio1

17.97

%


19.56

%


22.55

%

Tangible common equity to tangible assets - Non-GAAP 2

14.10

%


14.95

%


12.96

%










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 June 2013 and 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


June


March


June

(unaudited)

2013


2013


2012


(Dollars in thousands)

Net interest income

$

30,438



$

28,525



$

29,186


Net interest margin

3.72

%


3.64

%


3.62

%

Selected average balances:






Total earning assets

$

3,271,436



$

3,134,030



$

3,221,482


Total loans

2,544,695



2,405,825



2,211,630


Total securities

680,931



674,109



976,611


Total deposits

2,187,865



2,160,363



2,244,578


Total borrowings

679,693



590,238



626,055


Total non-interest-bearing demand deposits

393,815



367,217



316,237


Total interest-bearing liabilities

2,473,743



2,383,384



2,554,396


Net interest income for the quarter ended June 30, 2013, was $30.4 million, a $1.3 million increase from the second quarter of 2012 and a $1.9 million increase from the first quarter of 2013. The increase from the second quarter of 2012 was primarily due to a $1.9 million increase in interest income on loans and a $1.1 million decrease in interest expense, partially offset by a $1.7 million decrease in interest income on securities. 

The increase in interest income on loans for the current quarter compared to the quarter ended June 30, 2012, was primarily due to an increase in the average balance of commercial loans, which increased by $367.4 million, or 40.4%. Additionally, the average balance of loans held for sale increased by $74.5 million compared to the second quarter of 2012. This increase was partially offset by the 43 basis point decline in the average yield on loans to 5.05% for the quarter ended June 30, 2013, from 5.48% for the same period in 2012.

The decrease in interest expense primarily reflects lower deposit and borrowing rates, as well as a decline in the average balance of interest-bearing liabilities for the quarter ended June 30, 2013, compared to the same quarter in 2012. Average interest-bearing liabilities decreased by $80.7 million to $2.47 billion for the quarter ended June 30, 2013, compared to $2.55 billion for the same period in 2012, while the average cost of interest-bearing liabilities declined by 14 basis points to 0.79% for the quarter ended June 30, 2013, compared to 0.93% for the same period in 2012. 

The average balance of securities declined by $295.7 million, or 30.3%, for the second quarter of 2013 compared to the same period in 2012, while the average yield on securities declined by 14 basis points for the comparable periods. The decline in the securities portfolio over the past year was primarily due to normal paydowns and the sale of securities that were not consistent with our portfolio requirements.

The increase in net interest income for the current period compared to the first quarter of 2013 was primarily due to a $1.8 million increase in interest income earned on loans, driven primarily by higher average balances in our commercial loan portfolio and loans held for sale. The average yield earned on the loan portfolio remained constant at 5.05% for the linked quarters and was positively impacted by the $480,000 interest recovery on two commercial real estate loans that were paid in full during the second quarter of 2013. Compared to the quarter ended March 31, 2013, the average balance of commercial loans increased by $155.1 million, or 13.8%, while the average balance of loans held for sale increased by $17.3 million for the quarter ended June 30, 2013, compared to the quarter ended March 31, 2013.

Interest income on the commercial loan portfolio increased $3.6 million, or 24.9%, for the quarter ended June 30, 2013, compared to the same quarter last year, representing a shift in earning asset revenue as we continue our commercial banking strategy. Commercial loans generated 50.7% of the Company's interest income earned during the second quarter of 2013, compared to 40.8% of interest income earned during the same quarter in 2012.

The net interest margin for the second quarter of 2013 was 3.72%, a ten basis point increase from the second quarter of 2012 and an eight basis point increase from the first quarter of 2013. Accretion of interest related to the Highlands acquisition contributed nine basis points to the net interest margin for the quarter ended June 30, 2013, compared to 11 basis points for the quarter ended March 31, 2013. The average yield on earning assets for the quarter ended June 30, 2013 was 4.32%, a four basis point decrease from the second quarter of 2012 and a five basis point increase from the first quarter of 2013. 

Non-interest Income

Non-interest income for the quarter ended June 30, 2013, was $5.7 million, a $2.8 million decrease from the second quarter of 2012 and a $116,000 decrease from the first quarter of 2013. The decrease from the second quarter of 2012 was primarily attributable to a $2.2 million gain on the sale of mortgage loans and a $1.8 million increase in the value of an investment in a community development-oriented private equity fund used for Community Reinvestment Act purposes recorded in 2012 with no comparable gains in the 2013 period. These gains were offset by an $818,000 goodwill impairment charge recorded in the second quarter of 2012 due to the sale of ViewPoint Mortgage ("VPM"), which closed in the third quarter of 2012. Also, offsetting the decline in non-interest income was a $500,000 increase in gain on sale and disposition of assets for the second quarter of 2013 compared to the same period last year, primarily due to gains on the disposition of purchased credit impaired loans (acquired from Highlands) during the second quarter of 2013, as well as write-offs of VPM assets recorded during the second quarter of 2012.

The decrease in non-interest income compared to the first quarter of 2013 was primarily due to a $784,000 increase in the value of an investment in a community development-oriented private equity fund used for Community Reinvestment Act purposes recorded in the first quarter of 2013 with no comparable gain recorded in the second quarter of 2013, partially offset by a $477,000 increase in service charges and fees in the second quarter of 2013 compared to the first quarter of 2013. This increase in service charges and fees was primarily due to a $260,000 increase in commercial loan pre-payment penalty fee income.

Non-interest Expenses

Non-interest expense for the quarter ended June 30, 2013, was $21.7 million, a $4.6 million decrease from the second quarter of 2012 and an $830,000 increase from the first quarter of 2013. The decrease in non-interest expense compared to the second quarter of 2012 was primarily due to acquisition costs of $3.7 million reflected in the quarter ended June 30, 2012, with no comparable expense recorded in the same period in 2013, and a $1.6 million decrease in salary and benefits expense primarily due to savings resulting from the sale of VPM, as well as severance costs incurred during the second quarter of 2012 due to the Highlands acquisition and the sale of VPM. These decreases were partially offset by $400,000 in director retirement payments made during the second quarter of 2013, which are reflected in other non-interest expense.

The $830,000 increase in non-interest expense for the second quarter of 2013 compared to the first quarter of 2013 was primarily due to director retirement payments, as well as increases in advertising, data processing, and occupancy and equipment expense as the Company continues to make investments in its infrastructure to support its commercial banking strategy.

Financial Condition

Gross loans held for investment at June 30, 2013, increased by $89.5 million, or 5.1%, from March 31, 2013, and 14.7% from June 30, 2012. Loans held for sale at June 30, 2013 increased by $146.8 million, or 19.4%, from March 31, 2013. Compared to June 30, 2012, loans held for sale decreased by 2.3%. Commercial real estate balances at June 30, 2013, increased by $107.2 million, or 11.9%, from March 31, 2013, and 32.1% from June 30, 2012, while commercial and industrial loans at June 30, 2013, increased by $10.6 million, or 3.5%, from March 31, 2013, and 58.4% from June 30, 2012. 

Oil and gas loans, which are included in our commercial and industrial loans, totaled $57.5 million at June 30, 2013. To further develop this line of business, in May 2013, the Company announced the formation of a new energy lending group. The Energy Finance group will focus on providing loans to private and public oil and gas companies throughout the United States, with an emphasis on reserve-based transactions for development drilling, capital expenditures against oil and gas reserves, and acquisitions of oil and gas reserves. The group's offerings will also include the Bank's full array of commercial services, including Treasury Management and Letters of Credit. 

Total deposits decreased by $23.9 million, or 1.1%, to $2.19 billion at June 30, 2013, from $2.21 billion at March 31, 2013, which includes declines in all deposit categories except for time deposits. Compared to June 30, 2012, deposits decreased by $40.2 million, or 1.8%, which includes a $42.6 million increase in non-interest-bearing demand deposits that was offset by declines in interest-bearing demand and time deposits.

In line with our commercial banking strategy, commercial non-interest-bearing demand deposits totaled $248.4 million at June 30, 2013, compared to $212.3 million at June 30, 2012, and helped to generate $196,000 in billed analysis treasury management fee income during the six months ended June 30, 2013.

Total shareholders' equity increased by $2.5 million to $533.4 million at June 30, 2013, from $531.0 million at March 31, 2013.  The Company's tangible common equity ratio was 14.1% at June 30, 2013, a decrease of 85 basis points from March 31, 2013, and an increase of 114 basis points from June 30, 2012. During the quarter ended June 30, 2013, the Company repurchased 83,800 shares of its common stock, resulting in a $1.6 million reduction in equity. 

Credit Quality



At or For the Quarters Ended


June


March


June

(unaudited)

2013


2013


2012


(Dollars in thousands)

Net charge-offs

$

1,223



$

292



$

241


Net charge-offs/Average loans held for investment

0.27

%


0.07

%


0.06

%

Provision for loan losses

$

1,858



$

883



$

1,447


Non-performing loans ("NPLs")

23,799



27,721



22,557


NPLs/Total loans held for investment 1

1.30

%


1.59

%


1.41

%

Non-performing assets ("NPAs")

$

24,356



$

29,226



$

25,880


NPAs/Total assets

0.68

%


0.87

%


0.70

%

NPAs/Loans held for investment and foreclosed assets

1.33



1.67



1.61


Allowance for loan losses

$

19,277



$

18,642



$

19,229


Allowance for loan losses/Total loans held for investment 1

1.05

%


1.07

%


1.20

%

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

1.15



1.19



1.47


Allowance for loan losses/NPLs 1

81.00



67.25



85.25











1 Reflects the impact of loans acquired in the Highlands acquisition, which were initially recorded at fair value, with no allocated allowance for loan losses.
2 Excludes loans acquired from Highlands, which were initially recorded at fair value.

Non-performing loans to total loans at June 30, 2013, was 1.30%, compared to 1.59%  at March 31, 2013, and 1.41% at June 30, 2012. Non-performing loans decreased by $3.9 million to $23.8 million at June 30, 2013, from $27.7 million at March 31, 2013. Non-performing loans increased by $1.2 million from June 30, 2012, primarily due to increases in commercial and industrial and consumer real estate non-performing loans, which were partially offset by a decrease in commercial real estate non-performing loans for the comparable periods. During the second quarter of 2013, two commercial real estate loans that were classified as substandard troubled debt restructurings were paid in full, resulting in the recovery of $480,000 of accumulated interest, as well as the recapture of $91,000 in allowance for loan losses that was previously allocated to these two loans. These transactions reduced troubled debt restructurings by $5.9 million, which includes a $2.5 million reduction in non-performing loans.

Net charge-offs totaled $1.2 million for the second quarter of 2013, compared to $292,000 for the first quarter of 2013 and $241,000 for the second quarter of 2012. Charge-offs for the second quarter of 2013 included charge-offs related to two commercial real estate loans that totaled $716,000, which settled the remaining balance of the loans. These two loans previously had $941,000 of reserves allocated, which resulted in a net reduction of reserves totaling $225,000.  Provision expense for the quarter ended June 30, 2013, totaled $1.9 million, up $411,000 from the quarter ended June 30, 2012, and up $975,000 from the quarter ended March 31, 2013, primarily due to increased commercial loan production.

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 June 30, 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 June 30, 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 Wednesday, July 24, 2013, at 8 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 #10030672. 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












June 30, 2013


March 31, 2013


December 31, 2012


September 30, 2012


June 30, 2012


(Dollars in thousands)

ASSETS

(unaudited)


(unaudited)




(unaudited)


(unaudited)

Cash and due from financial institutions

$

30,504



$

25,724



$

34,227



$

24,429



$

30,407


Short-term interest-bearing deposits in other financial institutions

27,280



26,783



34,469



36,301



39,571


Total cash and cash equivalents

57,784



52,507



68,696



60,730



69,978


Securities available for sale, at fair value

287,834



315,438



287,034



316,780



467,515


Securities held to maturity

330,969



329,993



360,554



396,437



430,368


Total securities

618,803



645,431



647,588



713,217



897,883


Loans held for sale 1

904,228



757,472



1,060,720



1,014,445



925,637


Loans held for investment

1,835,187



1,745,737



1,690,769



1,651,639



1,600,556


Gross loans

2,739,415



2,503,209



2,751,489



2,666,084



2,526,193


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

(19,162)



(18,282)



(17,565)



(19,719)



(18,822)


Net loans

2,720,253



2,484,927



2,733,924



2,646,365



2,507,371


FHLB and Federal Reserve Bank stock, at cost

41,475



31,607



45,025



43,383



45,241


Bank-owned life insurance

35,231



35,078



34,916



34,701



34,491


Premises and equipment, net

52,865



53,050



53,160



53,348



53,725


Goodwill

29,650



29,650



29,650



29,650



29,203


Other assets

38,423



41,386



50,099



54,639



54,964


Total assets

$

3,594,484



$

3,373,636



$

3,663,058



$

3,636,033



$

3,692,856












LIABILITIES AND SHAREHOLDERS' EQUITY










Non-interest-bearing demand

$

384,836



$

392,759



$

357,800



$

349,880



$

342,228


Interest-bearing demand

464,262



481,966



488,748



471,672



509,650


Savings and money market

887,082



888,874



880,924



897,515



885,550


Time

453,000



449,491



450,334



473,834



491,978


Total deposits

2,189,180



2,213,090



2,177,806



2,192,901



2,229,406


FHLB advances

800,208



564,221



892,208



852,168



875,102


Repurchase agreement and other borrowings

25,000



25,000



25,000



25,000



38,682


Accrued expenses and other liabilities

46,662



40,358



47,173



49,611



44,091


Total liabilities

3,061,050



2,842,669



3,142,187



3,119,680



3,187,281












Shareholders' equity










Common stock

399



399



396



396



393


Additional paid-in capital

373,378



373,492



372,168



369,904



367,938


Retained earnings

176,569



172,386



164,328



161,887



153,722


Accumulated other comprehensive income, net

271



2,239



1,895



2,449



2,171


Unearned Employee Stock Ownership Plan (ESOP) shares

(17,183)



(17,549)



(17,916)



(18,283)



(18,649)


Total shareholders' equity

533,434



530,967



520,871



516,353



505,575


Total liabilities and shareholders' equity

$

3,594,484



$

3,373,636



$

3,663,058



$

3,636,033



$

3,692,856


1 Loans held for sale at June 30, 2012 included loans originated by ViewPoint Mortgage.

 

 


VIEWPOINT FINANCIAL GROUP, INC.

Consolidated Quarterly Statements of Income (unaudited)


For the Quarters Ended


Second Quarter 2013 Compared to:




Jun 30,

 2013


Mar 31,

 2013


Dec 31,

 2012


Sep 30,

2012


Jun 30,

2012


First Quarter 2013


Second Quarter

2012



Interest and dividend income

(Dollars in thousands)


  Loans, including fees

$

32,151



$

30,378



$

33,247



$

32,739



$

30,290



$

1,773


5.8

%

$

1,861


6.1

%


  Taxable securities

2,457



2,403



2,591



3,616



4,185



54


2.2


(1,728)


(41.3)



  Nontaxable securities

529



474



472



473



473



55


11.6


56


11.8



  Interest-bearing deposits in other financial institutions

25



31



31



29



38



(6)


(19.4)


(13)


(34.2)



  FHLB and Federal Reserve Bank stock

134



133



140



151



141



1


0.8


(7)


(5.0)





























35,296



33,419



36,481



37,008



35,127



1,877


5.6


169


0.5



Interest Expense

























  Deposits

2,450



2,432



2,321



2,656



3,247



18


0.7


(797)


(24.5)



  FHLB advances

2,205



2,261



2,423



2,515



2,415



(56)


(2.5)


(210)


(8.7)



  Repurchase agreement

203



201



205



217



251



2


1.0


(48)


(19.1)



  Other borrowings





4



1



28




N/M


(28)


(100.0)




4,858



4,894



4,953



5,389



5,941



(36)


(0.7)


(1,083)


(18.2)



Net interest income

30,438



28,525



31,528



31,619



29,186



1,913


6.7


1,252


4.3



Provision (benefit) for loan losses

1,858



883



(17)



814



1,447



975


110.4


411


28.4



Net interest income after provision (benefit) for loan losses

28,580



27,642



31,545



30,805



27,739



938


3.4


841


3.0



  Service charges and fees

4,768



4,291



5,562



4,885



4,827



477


11.1


(59)


(1.2)



  Other charges and fees

179



212



142



144



165



(33)


(15.6)


14


8.5



  Net gain on sale of mortgage loans







1,030



2,174




N/M


(2,174)


(100.0)



  Bank-owned life insurance income

153



162



216



210



165



(9)


(5.6)


(12)


(7.3)



  Gain (loss) on sale of available for sale securities



(177)





898



116



177


(100.0)


(116)


(100.0)



  Gain (loss) on sale and disposition of assets

444



230



(241)



187



(56)



214


93.0


500


(892.9)



  Impairment of goodwill









(818)




N/M


818


(100.0)



  Other

199



1,141



815



465



1,940



(942)


(82.6)


(1,741)


(89.7)




5,743



5,859



6,494



7,819



8,513



(116)


(2.0)


(2,770)


(32.5)



Non-interest expense

























Salaries and employee benefits

12,528



12,915



13,200



12,685



14,110



(387)


(3.0)


(1,582)


(11.2)



Acquisition costs







242



3,741




N/M


(3,741)


(100.0)



Advertising

751



513



599



379



490



238


46.4


261


53.3



Occupancy and equipment

1,938



1,790



1,934



2,009



1,952



148


8.3


(14)


(0.7)



Outside professional services

570



684



568



578



691



(114)


(16.7)


(121)


(17.5)



Regulatory assessments

650



579



661



668



624



71


12.3


26


4.2



Data processing

1,729



1,518



1,717



1,530



1,617



211


13.9


112


6.9



Office operations

1,751



1,648



1,831



1,834



1,934



103


6.3


(183)


(9.5)



Other

1,786



1,226



1,195



1,285



1,164



560


45.7


622


53.4




21,703



20,873



21,705



21,210



26,323



830


4.0


(4,620)


(17.6)



Income before income tax expense

12,620



12,628



16,334



17,414



9,929



(8)


(0.1)


2,691


27.1



Income tax expense

4,446



4,570



5,973



6,098



3,437



(124)


(2.7)


1,009


29.4



Net income

$

8,174



$

8,058



$

10,361



$

11,316



$

6,492





$

116


1.4

%

$

1,682


25.9

%





 


VIEWPOINT FINANCIAL GROUP, INC.

Selected Financial Highlights (unaudited)




At or For the Quarters Ended


June


March


June


2013


2013


2012


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

SHARE DATA:






Basic earnings per common share

$

0.21



$

0.21



$

0.17


Diluted earnings per common share

$

0.21



0.21



0.17


Dividends declared per share 1

$

0.10



$



$

0.06


Total shareholders' equity

$

533,434



$

530,967



$

505,575


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

$

13.36



$

13.29



$

12.85


Tangible book value per share- Non-GAAP2

$

12.58



$

12.51



$

12.06


Market value per share for the quarter:






High

$

20.81



$

21.75



$

16.72


Low

$

17.97



$

19.94



$

14.79


Close

$

20.81



$

20.11



$

15.64


Shares outstanding at end of period

39,926,716



39,948,031



39,344,167


Weighted average common shares outstanding- basic

37,545,050



37,529,793



37,116,322


Weighted average common shares outstanding- diluted

37,692,513



37,681,402



37,236,213


KEY RATIOS:






Return on average common shareholders' equity

6.14

%


6.11

%


5.15

%

Return on average assets

0.95

%


0.97

%


0.76

%

Efficiency ratio3

60.45

%


61.86

%


61.20

%

Estimated Tier 1 risk-based capital ratio4

17.97

%


19.56

%


22.55

%

Estimated total risk-based capital ratio4

18.66

%


20.29

%


23.47

%

Estimated Tier 1 leverage ratio4

14.71

%


15.16

%


13.95

%

Tangible equity to tangible assets- Non-GAAP2

14.10

%


14.95

%


12.96

%

Number of employees- full-time equivalent

561



566



620











1 The quarter ended March 2013, reflects no dividend declaration as the Company accelerated the payment of its first quarter 2013 dividend, making two dividend payments of $0.10 each in the fourth quarter 2012.
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. Beginning March 2013, capital 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


June 30, 2013


March 31, 2013


December 31, 2012


September 30, 2012


June 30, 2012

Loans:

(Dollars in thousands)

Loans held for sale 1

$

904,228



$

757,472



$

1,060,720



$

1,014,445



$

925,637


Commercial real estate

1,004,719



897,534



839,908



794,619



760,609


Commercial and industrial loans:










Commercial

288,054



271,605



245,799



226,391



180,706


Warehouse lines of credit

24,977



30,861



32,726



25,936



16,965


Total commercial and industrial loans

313,031



302,466



278,525



252,327



197,671


Consumer:










Consumer real estate

465,055



490,599



513,256



542,103



579,633


Other consumer loans

52,382



55,138



59,080



62,590



62,643


Total consumer

517,437



545,737



572,336



604,693



642,276


Gross loans held for investment

1,835,187



1,745,737



1,690,769



1,651,639



1,600,556


  Gross loans

$

2,739,415



$

2,503,209



$

2,751,489



$

2,666,084



$

2,526,193


Non-performing assets:










Commercial real estate

$

8,625



$

12,696



$

13,609



$

16,572



$

16,378


Commercial and industrial

6,849



6,807



5,401



4,597



873


Consumer real estate

7,913



7,840



7,931



6,661



5,270


Other consumer loans

412



378



262



251



36


Total non-performing loans

23,799



27,721



27,203



28,081



22,557


Foreclosed assets

557



1,505



1,901



3,850



3,323


Total non-performing assets

$

24,356



$

29,226



$

29,104



$

31,931



$

25,880


Total non-performing assets to total assets

0.68

%


0.87

%


0.79

%


0.88

%


0.70

%

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

1.30

%


1.59

%


1.61

%


1.70

%


1.41

%

Allowance for loan losses to non-performing loans 2

81.00

%


67.25

%


66.36

%


70.63

%


85.25

%

Allowance for loan losses to total loans held for investment 2

1.05

%


1.07

%


1.07

%


1.20

%


1.20

%

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

1.15

%


1.19

%


1.23

%


1.41

%


1.47

%

Troubled debt restructured loans ("TDRs"):










Performing TDRs:










Commercial real estate

$



$

3,372



$

3,384



$

3,087



$

3,087


Commercial and industrial

196



202



207



213



20


Consumer real estate

748



963



558



788



543


Other consumer loans

54



62



67



88



107


  Total performing TDRs

$

998



$

4,599



$

4,216



$

4,176



$

3,757


Non-performing TDRs:4










Commercial real estate

$

8,344



$

11,786



$

11,218



$

8,849



$

8,952


Commercial and industrial

75



71



102



105



281


Consumer real estate

2,215



2,018



2,235



1,943



1,178


Other consumer loans

317



261



205



88




  Total non-performing TDRs

$

10,951



$

14,136



$

13,760



$

10,985



$

10,411


Allowance for loan losses:










Balance at beginning of period

$

18,642



$

18,051



$

19,835



$

19,229



$

18,023


Provision expense (benefit)

1,858



883



(17)



814



1,447


Charge-offs

(1,394)



(476)



(1,936)



(412)



(358)


Recoveries

171



184



169



204



117


  Balance at end of period

$

19,277



$

18,642



$

18,051



$

19,835



$

19,229


Net charge-offs (recoveries)










Commercial real estate

$

716



$

87



$

185



$

2



$


Commercial and industrial

64



172



893



(31)



10


Consumer real estate

320



23



437



94



120


Other consumer loans

123



10



252



143



111


Total net charge-offs

$

1,223



$

292



$

1,767



$

208



$

241



1 Loans held for sale at June 30, 2012 included loans originated by ViewPoint Mortgage.

2 Reflects the impact of loans acquired in the Highlands acquisition, which were initially recorded at fair value, with no allocated allowance for loan losses.

3 Excludes 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


June 30, 2013


March 31, 2013


December 31, 2012


September 30, 2012


June 30, 2012

Loans:

(Dollars in thousands)

Commercial real estate

$

961,631



$

839,155



$

805,362



$

762,521



$

724,775


Commercial and industrial loans:










Commercial

288,481



257,510



251,447



183,870



169,567


Warehouse lines of credit

27,670



26,037



26,072



22,639



16,013


Consumer real estate

476,226



504,965



524,213



550,341



575,791


Other consumer loans

53,759



57,164



60,435



63,142



62,192


Loans held for sale 1

755,577



738,234



908,603



886,743



681,095


Less: deferred fees and allowance for loan loss

(18,649)



(17,240)



(19,326)



(19,113)



(17,803)


Loans receivable

2,544,695



2,405,825



2,556,806



2,450,143



2,211,630


Securities

680,931



674,109



734,598



914,818



976,611


Overnight deposits

45,810



54,096



50,556



49,740



33,241


Total interest-earning assets

$

3,271,436



$

3,134,030



$

3,341,960



$

3,414,701



$

3,221,482


Deposits:










Interest-bearing demand

$

459,433



$

465,385



$

463,465



$

474,342



$

505,569


Savings and money market

883,507



877,690



888,410



894,916



892,844


Time

451,110



450,071



469,772



476,666



529,928


FHLB advances and other borrowings

679,693



590,238



770,627



863,949



626,055


Total interest-bearing liabilities

$

2,473,743



$

2,383,384



$

2,592,274



$

2,709,873



$

2,554,396












Total assets

$

3,453,699



$

3,322,899



$

3,529,665



$

3,607,101



$

3,427,807


Non-interest-bearing demand deposits

393,815



367,217



358,707



338,074



316,237


Total deposits

2,187,865



2,160,363



2,180,354



2,183,998



2,244,578


Total shareholders' equity

532,897



527,958



520,684



513,431



504,596












Yields/Rates:










Commercial real estate

5.85

%


5.88

%


6.17

%


6.44

%


6.41

%

Commercial and industrial loans:










Commercial

4.97

%


4.72

%


5.24

%


5.98

%


6.08

%

Warehouse lines of credit

3.57

%


3.63

%


3.71

%


3.82

%


3.31

%

Consumer real estate

5.16

%


5.30

%


5.48

%


5.40

%


5.54

%

Other consumer loans

5.94

%


5.84

%


6.00

%


6.03

%


6.43

%

Loans held for sale 1

3.87

%


3.92

%


4.05

%


4.11

%


4.10

%

Loans receivable

5.05

%


5.05

%


5.20

%


5.34

%


5.48

%

Securities

1.83

%


1.79

%


1.74

%


1.85

%


1.97

%

Overnight deposits

0.22

%


0.23

%


0.25

%


0.23

%


0.46

%

Total interest-earning assets

4.32

%


4.27

%


4.37

%


4.34

%


4.36

%

Deposits:










Interest-bearing demand

0.41

%


0.40

%


0.43

%


0.61

%


0.84

%

Savings and money market

0.27

%


0.27

%


0.27

%


0.27

%


0.29

%

Time

1.23

%


1.22

%


1.03

%


1.11

%


1.17

%

FHLB advances and other borrowings

1.42

%


1.67

%


1.37

%


1.27

%


1.72

%

Total interest-bearing liabilities

0.79

%


0.82

%


0.76

%


0.80

%


0.93

%

Net interest spread

3.53

%


3.45

%


3.61

%


3.54

%


3.43

%

Net interest margin

3.72

%


3.64

%


3.77

%


3.70

%


3.62

%

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

0.45

%


0.45

%


0.43

%


0.49

%


0.58

%
















1 Loans held for sale for the June 2012 period include loans originated by ViewPoint Mortgage.

 

 

VIEWPOINT FINANCIAL GROUP, INC.
Supplemental Information- Non-GAAP Financial Measures (unaudited)




Ending Balances At


June 30, 2013


March 31, 2013


December 31, 2012


September 30, 2012


June 30, 2012

Calculation of Tangible Book Value per Share:

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

Total shareholders' equity

$

533,434



$

530,967



$

520,871



$

516,353



$

505,575


Less:  Goodwill

(29,650)



(29,650)



(29,650)



(29,650)



(29,203)


Identifiable intangible assets, net

(1,446)



(1,541)



(1,653)



(1,793)



(1,949)


Total tangible shareholders' equity

$

502,338



$

499,776



$

489,568



$

484,910



$

474,423












Shares outstanding at end of period

39,926,716



39,948,031



39,612,911



39,579,667



39,344,167












Book value per share- GAAP

$

13.36



$

13.29



$

13.15



$

13.05



$

12.85


Tangible book value per share- Non-GAAP

$

12.58



$

12.51



$

12.36



$

12.25



$

12.06












Calculation of Tangible Equity to Tangible Assets:










Total assets

$

3,594,484



$

3,373,636



$

3,663,058



$

3,636,033



$

3,692,856


Less:  Goodwill

(29,650)



(29,650)



(29,650)



(29,650)



(29,203)


Identifiable intangible assets, net

(1,446)



(1,541)



(1,653)



(1,793)



(1,949)


Total tangible assets

$

3,563,388



$

3,342,445



$

3,631,755



$

3,604,590



$

3,661,704












Equity to assets- GAAP

14.84

%


15.74

%


14.22

%


14.20

%


13.69

%

Tangible common equity to tangible assets- Non-GAAP

14.10

%


14.95

%


13.48

%


13.45

%


12.96

%

 

 

SOURCE ViewPoint Financial Group, Inc.



Featured Video

Journalists and Bloggers

Visit PR Newswire for Journalists for releases, photos, ProfNet experts, and customized feeds just for Media.

View and download archived video content distributed by MultiVu on The Digital Center.

Share with Twitter Share with LinkedIn
 

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

 
 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

 
 

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.

 

Online Member Center

Not a Member?
Click Here to Join
Login
Search News Releases
Advanced Search
Search
  1. PR Newswire Services
  2. Knowledge Center
  3. Browse News Releases
  4. Contact PR Newswire
  5. Send a News Release