ViewPoint Financial Group, Inc. Reports Record Quarterly Earnings and Strong Loan Growth For Third Quarter 2012
PLANO, Texas, Oct. 25, 2012 /PRNewswire/ -- ViewPoint Financial Group, Inc. (NASDAQ: VPFG) (the "Company"), the holding company for ViewPoint Bank, N.A. (the "Bank"), today announced third quarter 2012 net income of $11.3 million, an increase of $4.8 million, or 74.3%, from $6.5 million for the second quarter of 2012. Earnings per share of $0.30 increased $0.13, or 76.5%, from $0.17 for the second quarter of 2012.
Third Quarter 2012 Highlights Compared to Second Quarter 2012
- Earnings per share: Quarterly earnings per share were $0.30 per share, up $0.13 per share, or 76.5%, from June 30, 2012.
- Record net income of $11.3 million for the quarter, up 74% from prior quarter and up 120% from same time last year: Net income for the three months ended September 30, 2012, was $11.3 million, up $4.8 million, or 74.3%, from the second quarter of 2012. The increase primarily reflected lower non-interest expense, higher net interest income, and a decrease in the provision expense, partially offset by a decrease in non-interest income.
- $140 million in loan growth during the third quarter of 2012, including $80 million of commercial loan growth: Gross loans increased $139.9 million, or 5.5%, to $2.67 billion at September 30, 2012, from $2.53 billion at June 30, 2012, primarily reflecting growth of $88.8 million in mortgage loans held for sale (due to Warehouse Purchase Program) and $79.7 million in commercial loans (commercial real estate and commercial and industrial). Commercial and industrial ("C&I") loans (excluding warehouse lines of credit) grew $45.7 million, or 25.3%, during the quarter and totaled $226.4 million at September 30, 2012.
- Net interest margin increased by eight basis points for the three months ended September 30, 2012: Due to changes in the earning asset mix and lower deposit and borrowing rates, the net interest margin increased by eight basis points on a linked quarter basis to 3.70% for the three months ended September 30, 2012, from 3.62% for the three months ended June 30, 2012.
- Announced quarterly cash dividend of $0.10 per share, up 25% from prior quarter: The Company today declared a quarterly cash dividend of $0.10 per share, up $0.02, or 25%, from $0.08 per share in the prior quarter.
"We are very pleased with our quarterly performance and with the continued execution of our plans," said President and CEO Kevin Hanigan. "Not only did the Company post record quarterly earnings, our net interest margin is also at a record high, and our C&I, commercial real estate and warehouse lending programs showed solid growth. In addition, our employees were able to accomplish these results in concert with the successful system conversion and integration of the former Highlands Bank to ViewPoint Bank."
At Or For The Quarters Ended |
||||||
September |
June |
September |
||||
(Dollars in thousands, except share and per share amounts) |
2012 |
2012 |
2011 |
|||
Net interest income |
$ 31,619 |
$ 29,186 |
$ 20,479 |
|||
Provision for loan losses |
814 |
1,447 |
581 |
|||
Non-interest income |
7,819 |
8,513 |
6,207 |
|||
Non-interest expense |
21,210 |
26,323 |
18,567 |
|||
Income tax expense |
6,098 |
3,437 |
2,395 |
|||
Net income |
11,316 |
6,492 |
5,143 |
|||
Diluted earnings per common share |
0.30 |
0.17 |
0.16 |
|||
Weighted average common shares outstanding - diluted |
37,466,031 |
37,236,213 |
32,497,283 |
|||
Tier 1 risk-based capital ratio1 |
22.16 |
% |
22.55 |
% |
21.20 |
% |
Tangible common equity to tangible assets - Non-GAAP2 |
13.45 |
12.96 |
12.54 |
|||
Net interest margin |
3.70 |
3.62 |
2.87 |
1 |
Calculated at the ViewPoint Financial Group, Inc. level, which is subject to the capital adequacy requirements of the Federal Reserve. On December 19, 2011, the Bank converted its charter from a federal thrift charter to a national banking charter, with regulatory oversight by the OCC. |
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 |
||||||
September |
June |
September |
||||
(Dollars in thousands) |
2012 |
2012 |
2011 |
|||
Net interest income |
$ 31,619 |
$ 29,186 |
$ 20,479 |
|||
Net interest margin |
3.70 |
% |
3.62 |
% |
2.87 |
% |
Selected average balances |
||||||
Total earning assets |
$ 3,414,701 |
$ 3,221,482 |
$ 2,854,251 |
|||
Total securities |
914,818 |
976,611 |
1,237,853 |
|||
Total loans |
2,450,143 |
2,211,630 |
1,543,162 |
|||
Total deposits |
2,183,998 |
2,244,578 |
2,066,657 |
|||
Total borrowings |
863,949 |
626,055 |
458,620 |
|||
Total noninterest-bearing deposits |
338,074 |
316,237 |
193,725 |
|||
Third quarter net interest income increased by $2.4 million, or 8.3%, to $31.6 million, compared to the second quarter of 2012, primarily due to a $2.4 million increase in interest income earned on loans. The increase in interest income on loans was driven by a $205.6 million increase in the average balance of mortgage loans held for sale (due to Warehouse Purchase Program), a $37.7 million increase in the average balance of commercial real estate loans and a $20.9 million increase in average C&I loans. The increase in interest income on loans was partially offset by a $559,000 decrease in interest income earned on securities, as the average balance of the securities portfolio (including FHLB and FRB stock) declined by $61.8 million, or 6.3%, during the third quarter of 2012 compared to the second quarter of 2012.
Interest expense on deposits decreased by $591,000 during the third quarter of 2012 compared to the second quarter of 2012, primarily due to interest-bearing demand and time deposits. The average balances of interest-bearing demand and time deposits decreased by $31.2 million and $53.3 million, respectively, while the average rate paid on interest-bearing demand and time deposits declined by 23 basis points and six basis points, respectively. A $21.8 million increase in non-interest-bearing checking average balances helped to offset these balance declines.
The net interest margin for the third quarter of 2012 was 3.70%, an eight basis point increase from the second quarter of 2012, and an 83 basis point increase from the third quarter of 2011. The increase in the net interest margin was primarily attributable to changes in the earning asset mix, lower deposit and borrowing rates paid, and the accretion of the Highlands purchase accounting discount.
Non-interest Income
Third quarter non-interest income declined $694,000, or 8.2%, to $7.8 million compared to the second quarter of 2012, primarily reflecting a $1.8 million gain in the value of an investment in a community development-oriented private equity fund used for Community Reinvestment Act purposes recorded in the second quarter of 2012, with no corresponding gain in the third quarter. Also, due to the third quarter 2012 sale of ViewPoint Mortgage (VPM), net gain on the sale of mortgage loans decreased by $1.1 million in the third quarter when compared to the quarter ended June 30, 2012. The decreases in non-interest income for the third quarter were partially offset by the $818,000 second quarter goodwill impairment charge due to the sale of ViewPoint Mortgage, with no corresponding charge in the third quarter of 2012, and a $782,000 increase in gain on the sale of available-for-sale securities in the third quarter.
Non-interest Expenses
Non-interest expense totaled $21.2 million for the third quarter of 2012, a decrease of $5.1 million, or 19.4%, from $26.3 million for the second quarter of 2012. The decrease in non-interest expenses was primarily due to a $3.5 million decrease in acquisition costs and a $1.4 million decrease in salaries and employee benefits. The decrease in salaries and employee benefits primarily resulted from the sale of VPM, as well as $308,000 in unrestricted stock awarded to the Company's newly appointed CEO in the second quarter, with no corresponding charge in the third quarter of 2012.
Non-interest expense for the third quarter of 2012 included Highlands-related acquisition costs of $242,000 and severance and benefits costs of $273,000 paid for the departure of our Chief Operating Officer in August 2012, while non-interest expense for the second quarter of 2012 included Highlands-related acquisition costs of $3.7 million and severance costs of $493,000 related to the Highlands acquisition, the sale of VPM, and the departure of our General Counsel.
Financial Condition
Total assets decreased by $56.8 million to $3.64 billion at September 30, 2012, from $3.69 billion at June 30, 2012, primarily due to a $184.7 million decrease in securities, partially offset by a $139.9 million increase in gross loans. The decrease in securities reflects a shift in the average earning asset mix as we transition from lower yielding securities to higher yielding commercial loans.
Gross loans (including $1.01 billion in mortgage loans held for sale at September 30, 2012) increased by $139.9 million, or 5.5%, to $2.67 billion at September 30, 2012, from $2.53 billion at June 30, 2012. Mortgage loans held for sale (Warehouse Purchase Program loans) increased $88.8 million from the prior quarter, while commercial loans grew $79.7 million. C&I loans grew $45.7 million, or 25.3%, during the quarter and totaled $226.4 million at September 30, 2012. These increases were partially offset by a $34.5 million decline in one- to four-family loan balances.
Total deposits decreased by $36.5 million, or 1.6%, to $2.19 billion at September 30, 2012, compared to $2.23 billion at June 30, 2012. Decreases in interest-bearing demand and time deposits of $38.0 million and $18.1 million, respectively, primarily drove the decline, offset by increases of $12.0 million in savings and money market funds and $7.6 million in non-interest-bearing demand deposits.
Shareholders' equity was $516.4 million at September 30, 2012, compared to $505.6 million at June 30, 2012. There were approximately 39.6 million common shares outstanding at September 30, 2012. On October 25, 2012, the Company declared a quarterly cash dividend of $0.10 per share, up $0.02, or 25%, from $0.08 per share in the prior quarter.
On August 22, 2012, the Company issued a press release announcing its intention to repurchase up to 5% of its total common shares outstanding, or approximately 1,978,871 shares. The stock repurchase program, which is open-ended, commenced on August 27, 2012, and allows the Company to repurchase its shares from time to time in the open market and in negotiated transactions, depending upon market conditions. The Board of Directors of the Company also authorized management to enter into a trading plan with Sandler O'Neill & Partners, LP in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended, to facilitate repurchases of its common stock pursuant to the above- mentioned stock repurchase program. There were no repurchases of common stock in the third or second quarters of 2012.
The Company's tangible common equity ratio was 13.45% at September 30, 2012, an increase of 49 basis points from June 30, 2012. The Tier 1 risk-based capital ratio decreased 39 basis points, to 22.16% at September 30, 2012, from June 30, 2012.
Credit Quality
At Or For The Quarters Ended |
||||||
September |
June |
September |
||||
(Dollars in thousands) |
2012 |
2012 |
2011 |
|||
Net charge-offs |
$ 208 |
$ 241 |
$ 205 |
|||
Net charge-offs/Average total loans held for investment |
0.01 |
% |
0.02 |
% |
0.02 |
% |
Provision for loan losses |
$ 814 |
$ 1,447 |
$ 581 |
|||
Nonperforming loans |
28,081 |
22,557 |
17,439 |
|||
Nonperforming assets |
31,931 |
25,880 |
19,537 |
|||
NPAs/Total loans held for investment and foreclosed property |
1.93 |
% |
1.61 |
% |
1.67 |
% |
Allowance for loan losses |
$ 19,835 |
$ 19,229 |
$ 16,535 |
|||
Allowance for loan losses/Total loans (a) |
1.20 |
% |
1.20 |
% |
1.42 |
% |
Allowance for loan losses/Nonperforming loans |
70.63 |
85.25 |
94.82 |
(a) |
Reflects the impact of acquired loans, which were initially recorded at fair value, with no related allowance for loan losses |
The provision for loan losses was $814,000 for the three months ended September 30, 2012, a decrease of $633,000, or 43.7%, from the three months ended June 30, 2012. In the third quarter of 2012, the decrease in provision expense was primarily driven by management's assessment, and subsequent decrease, of qualitative factors on certain portfolios where trends have indicated decreased loss exposure. The balance of the allowance for loan losses at September 30, 2012, was $19.8 million, an increase of $606,000 from $19.2 million at June 30, 2012, which was primarily due to loan growth. The allowance for loan losses to total loans ratio was 1.20% for both the quarters ended September 30, 2012 and June 30, 2012.
Our non-performing loans to total loans ratio at September 30, 2012, was 1.70%, compared to 1.41% at June 30, 2012. Non-performing loans increased by $5.5 million to $28.1 million at September 30, 2012, from $22.6 million at June 30, 2012. This increase was primarily due to three substandard line of credit C&I loans acquired from Highlands totaling $2.9 million that were placed on nonaccrual in the third quarter of 2012. The $1.6 million in purchase accounting discounts applied to these loans cover any estimated losses. At September 30, 2012, no purchased credit impaired loans from the Highlands transaction were included in non-performing loans. Our allowance for loan losses to non-performing loans ratio was 70.63% at September 30, 2012, compared to 85.25% as of June 30, 2012.
ViewPoint Mortgage Sale
On June 5, 2012, the Bank and its wholly owned subsidiary, ViewPoint Bankers Mortgage, Inc., doing business as ViewPoint Mortgage ("VPM"), entered into a definitive agreement (the "Agreement") with Highlands Residential Mortgage, Ltd. ("HRM") to sell substantially all of the assets of VPM to HRM, subject to certain closing conditions. The terms of the Agreement provided for HRM to, subject to certain conditions contained in the Agreement, (i) purchase VPM's loan pipeline and all of VPM's existing construction loan portfolio, together with certain furniture, fixtures and equipment, (ii) assume substantially all of VPM's loan production office leases and its equipment leases, (iii) hire no less than 95% of the current VPM employees and satisfactorily release VPM from certain employment contracts, and (iv) make additional earn out payments to VPM. The sale closed during the third quarter of 2012, and the Agreement provides an opportunity for the Bank to partner with HRM to continue providing the Bank's customers with residential mortgage services.
Conference Call
The Company will host an investor conference call to review these results on Friday, October 26, 2012, at 10 a.m., Central Time. Participants are asked to call (toll-free) 1-877-317-6789 at least five minutes prior to the call. International participants are asked to call 1-412-317-6789 and participants in Canada are asked to call (toll-free) 1-866-605-3852.
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 #10017636. This audio 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, National Association. 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.
VIEWPOINT FINANCIAL GROUP, INC. Consolidated Balance Sheets |
|||||||
September 30, |
June 30, |
December 31, |
September 30, |
||||
2012 |
2012 |
2011 |
2011 |
||||
(Dollar amounts in thousands, except share data) |
(unaudited) |
(unaudited) |
(unaudited) |
||||
ASSETS |
|||||||
Cash and due from financial institutions |
$ 24,429 |
$ 30,407 |
$ 16,661 |
$ 16,374 |
|||
Short-term interest-bearing deposits in other financial institutions |
36,301 |
39,571 |
29,687 |
37,786 |
|||
Total cash and cash equivalents |
60,730 |
69,978 |
46,348 |
54,160 |
|||
Securities available for sale, at fair value |
316,780 |
467,515 |
433,745 |
655,925 |
|||
Securities held to maturity |
396,437 |
430,368 |
500,488 |
539,257 |
|||
Total securities |
713,217 |
897,883 |
934,233 |
1,195,182 |
|||
Loans held for sale |
1,014,445 |
925,637 |
834,352 |
691,204 |
|||
Loans held for investment |
1,651,755 |
1,600,963 |
1,228,544 |
1,166,161 |
|||
Total loans |
2,666,200 |
2,526,600 |
2,062,896 |
1,857,365 |
|||
Less: allowance for loan losses |
(19,835) |
(19,229) |
(17,487) |
(16,535) |
|||
Net loans |
2,646,365 |
2,507,371 |
2,045,409 |
1,840,830 |
|||
FHLB and Federal Reserve Bank stock, at cost |
43,383 |
45,241 |
37,590 |
29,210 |
|||
Bank-owned life insurance |
34,701 |
34,491 |
29,007 |
28,904 |
|||
Premises and equipment, net |
53,348 |
53,725 |
50,261 |
48,595 |
|||
Goodwill |
29,650 |
29,203 |
818 |
818 |
|||
Accrued income and other assets |
54,639 |
54,964 |
36,912 |
37,579 |
|||
Total assets |
$ 3,636,033 |
$ 3,692,856 |
$ 3,180,578 |
$ 3,235,278 |
|||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||
Deposits |
|||||||
Non-interest-bearing demand |
$ 349,880 |
$ 342,228 |
$ 211,670 |
$ 207,940 |
|||
Interest-bearing demand |
471,672 |
509,650 |
498,253 |
496,269 |
|||
Savings and money market |
897,515 |
885,550 |
759,576 |
762,238 |
|||
Time |
473,834 |
491,978 |
493,992 |
607,180 |
|||
Total deposits |
2,192,901 |
2,229,406 |
1,963,491 |
2,073,627 |
|||
FHLB advances - net of prepayment penalty |
852,168 |
875,102 |
746,398 |
671,761 |
|||
Repurchase agreement and other borrowings |
25,000 |
38,682 |
25,000 |
35,000 |
|||
Accrued expenses and other liabilities |
49,611 |
44,091 |
39,380 |
48,204 |
|||
Total liabilities |
3,119,680 |
3,187,281 |
2,774,269 |
2,828,592 |
|||
Commitments and contingent liabilities |
- |
- |
- |
- |
|||
Shareholders' equity |
|||||||
Common stock, $.01 par value; 90,000,000 shares authorized; |
|||||||
Issued and Outstanding - 39,579,667 shares at 9/30/12, 39,344,167 shares at 6/30/12, 33,700,399 shares at 12/31/11, and 34,262,491 shares at 9/30/11 |
396 |
393 |
337 |
342 |
|||
Additional paid-in capital |
369,904 |
367,938 |
279,473 |
284,974 |
|||
Retained earnings |
161,887 |
153,722 |
144,535 |
136,454 |
|||
Accumulated other comprehensive income, net |
2,449 |
2,171 |
1,347 |
4,665 |
|||
Unearned Employee Stock Ownership Plan (ESOP) |
(18,283) |
(18,649) |
(19,383) |
(19,749) |
|||
Total shareholders' equity |
516,353 |
505,575 |
406,309 |
406,686 |
|||
Total liabilities and shareholders' equity |
$ 3,636,033 |
$ 3,692,856 |
$ 3,180,578 |
$ 3,235,278 |
VIEWPOINT FINANCIAL GROUP, INC. Consolidated Statements of Income |
|||||||
Three Months Ended |
Nine Months Ended |
||||||
2012 |
2011 |
2012 |
2011 |
||||
(Dollars in thousands, except share and per share amounts) |
(unaudited) |
(unaudited) |
|||||
Interest and dividend income |
|||||||
Loans, including fees |
$ 32,739 |
$ 21,838 |
$ 87,349 |
$ 63,132 |
|||
Taxable securities |
3,616 |
6,633 |
12,259 |
20,140 |
|||
Nontaxable securities |
473 |
473 |
1,419 |
1,419 |
|||
Interest-bearing deposits in other financial institutions |
29 |
44 |
86 |
144 |
|||
FHLB and Federal Reserve Bank stock |
151 |
18 |
398 |
52 |
|||
37,008 |
29,006 |
101,511 |
84,887 |
||||
Interest expense |
|||||||
Deposits |
2,656 |
5,702 |
9,132 |
18,045 |
|||
FHLB advances |
2,515 |
2,467 |
7,384 |
7,360 |
|||
Repurchase agreement |
217 |
206 |
671 |
611 |
|||
Other borrowings |
1 |
152 |
29 |
450 |
|||
5,389 |
8,527 |
17,216 |
26,466 |
||||
Net interest income |
31,619 |
20,479 |
84,295 |
58,421 |
|||
Provision for loan losses |
814 |
581 |
3,156 |
2,741 |
|||
Net interest income after provision for loan losses |
30,805 |
19,898 |
81,139 |
55,680 |
|||
Non-interest income |
|||||||
Service charges and fees |
4,885 |
4,659 |
13,950 |
14,027 |
|||
Other charges and fees |
144 |
144 |
437 |
544 |
|||
Net gain on sale of mortgage loans |
1,030 |
1,710 |
5,436 |
5,538 |
|||
Bank-owned life insurance income |
210 |
118 |
484 |
403 |
|||
Gain on sale of available for sale securities |
898 |
- |
1,014 |
3,415 |
|||
Gain (loss) on sale and disposition of assets |
187 |
(533) |
50 |
(749) |
|||
Impairment of goodwill |
- |
- |
(818) |
(271) |
|||
Other |
465 |
109 |
2,509 |
1,403 |
|||
7,819 |
6,207 |
23,062 |
24,310 |
||||
Non-interest expense |
|||||||
Salaries and employee benefits |
12,685 |
11,751 |
38,519 |
35,147 |
|||
Acquisition costs |
242 |
- |
4,127 |
- |
|||
Advertising |
379 |
351 |
1,154 |
1,217 |
|||
Occupancy and equipment |
2,009 |
1,511 |
5,431 |
4,333 |
|||
Outside professional services |
578 |
769 |
1,752 |
2,126 |
|||
Regulatory assessments |
668 |
409 |
1,873 |
1,866 |
|||
Data processing |
1,530 |
1,168 |
4,392 |
3,366 |
|||
Office operations |
1,834 |
1,521 |
5,313 |
4,452 |
|||
Other |
1,285 |
1,087 |
3,424 |
3,189 |
|||
21,210 |
18,567 |
65,985 |
55,696 |
||||
Income before income tax expense |
17,414 |
7,538 |
38,216 |
24,294 |
|||
Income tax expense |
6,098 |
2,395 |
13,336 |
7,740 |
|||
Net income |
$ 11,316 |
$ 5,143 |
$ 24,880 |
$ 16,554 |
|||
Weighted average common shares outstanding - basic |
37,362,535 |
32,468,640 |
35,348,911 |
32,422,921 |
|||
Weighted average common shares outstanding - diluted |
37,466,031 |
32,497,283 |
35,475,596 |
32,479,092 |
|||
Per share information |
|||||||
Basic |
$ 0.30 |
$ 0.16 |
$ 0.70 |
$ 0.51 |
|||
Diluted |
0.30 |
0.16 |
0.70 |
0.51 |
|||
Cash dividends declared per share |
0.08 |
0.05 |
0.20 |
0.15 |
VIEWPOINT FINANCIAL GROUP, INC. Consolidated Quarterly Statements of Income |
|||||||||||||||||||
For The Quarters Ended |
|||||||||||||||||||
September |
June |
March |
December |
September |
Third Quarter 2012 Compared To: |
||||||||||||||
(Dollars in thousands) |
2012 |
2012 |
2012 |
2011 |
2011 |
Second Quarter 2012 |
Third quarter 2011 |
||||||||||||
Interest and dividend income |
|||||||||||||||||||
Loans, including fees |
$ 32,739 |
$ 30,290 |
$ 24,320 |
$ 25,106 |
$ 21,838 |
$ 2,449 |
8.09 |
% |
$ 10,901 |
49.92 |
% |
||||||||
Taxable securities |
3,616 |
4,185 |
4,458 |
5,690 |
6,633 |
(569) |
(13.60) |
(3,017) |
(45.48) |
||||||||||
Nontaxable securities |
473 |
473 |
473 |
473 |
473 |
- |
0.00 |
- |
0.00 |
||||||||||
Interest-bearing deposits in other financial institutions |
29 |
38 |
19 |
26 |
44 |
(9) |
(23.68) |
(15) |
(34.09) |
||||||||||
FHLB and Federal Reserve Bank stock |
151 |
141 |
106 |
42 |
18 |
10 |
7.09 |
133 |
N/M |
||||||||||
37,008 |
35,127 |
29,376 |
31,337 |
29,006 |
1,881 |
5.35 |
8,002 |
27.59 |
|||||||||||
Interest expense |
|||||||||||||||||||
Deposits |
2,656 |
3,247 |
3,229 |
4,429 |
5,702 |
(591) |
(18.20) |
(3,046) |
(53.42) |
||||||||||
FHLB advances |
2,515 |
2,415 |
2,454 |
2,522 |
2,467 |
100 |
4.14 |
48 |
1.95 |
||||||||||
Repurchase agreement |
217 |
251 |
203 |
205 |
206 |
(34) |
(13.55) |
11 |
5.34 |
||||||||||
Other borrowings |
1 |
28 |
- |
24 |
152 |
(27) |
(96.43) |
(151) |
(99.34) |
||||||||||
5,389 |
5,941 |
5,886 |
7,180 |
8,527 |
(552) |
(9.29) |
(3,138) |
(36.80) |
|||||||||||
Net interest income |
31,619 |
29,186 |
23,490 |
24,157 |
20,479 |
2,433 |
8.34 |
11,140 |
54.40 |
||||||||||
Provision for loan losses |
814 |
1,447 |
895 |
1,229 |
581 |
(633) |
(43.75) |
233 |
40.10 |
||||||||||
Net interest income after provision for loan losses |
30,805 |
27,739 |
22,595 |
22,928 |
19,898 |
3,066 |
11.05 |
10,907 |
54.81 |
||||||||||
Non-interest income |
|||||||||||||||||||
Service charges and fees |
4,885 |
4,827 |
4,238 |
4,529 |
4,659 |
58 |
1.20 |
226 |
4.85 |
||||||||||
Other charges and fees |
144 |
165 |
128 |
179 |
144 |
(21) |
(12.73) |
- |
0.00 |
||||||||||
Net gain on sale of mortgage loans |
1,030 |
2,174 |
2,232 |
2,101 |
1,710 |
(1,144) |
(52.62) |
(680) |
(39.77) |
||||||||||
Bank-owned life insurance income |
210 |
165 |
109 |
103 |
118 |
45 |
27.27 |
92 |
77.97 |
||||||||||
Gain on sale of available for sale securities |
898 |
116 |
- |
2,853 |
- |
782 |
N/M |
898 |
N/M |
||||||||||
Gain (loss) on sale and disposition of assets |
187 |
(56) |
(81) |
(49) |
(533) |
243 |
N/M |
720 |
N/M |
||||||||||
Impairment of goodwill |
- |
(818) |
- |
- |
- |
818 |
(100.00) |
- |
N/M |
||||||||||
Other |
465 |
1,940 |
104 |
522 |
109 |
(1,475) |
(76.03) |
356 |
N/M |
||||||||||
7,819 |
8,513 |
6,730 |
10,238 |
6,207 |
(694) |
(8.15) |
1,612 |
25.97 |
|||||||||||
Non-interest expense |
|||||||||||||||||||
Salaries and employee benefits |
12,685 |
14,110 |
11,724 |
12,213 |
11,751 |
(1,425) |
(10.10) |
934 |
7.95 |
||||||||||
Acquisition costs |
242 |
3,741 |
144 |
- |
- |
(3,499) |
(93.53) |
242 |
N/M |
||||||||||
Advertising |
379 |
490 |
285 |
302 |
351 |
(111) |
(22.65) |
28 |
7.98 |
||||||||||
Occupancy and equipment |
2,009 |
1,952 |
1,470 |
1,633 |
1,511 |
57 |
2.92 |
498 |
32.96 |
||||||||||
Outside professional services |
578 |
691 |
483 |
518 |
769 |
(113) |
(16.35) |
(191) |
(24.84) |
||||||||||
Regulatory assessments |
668 |
624 |
581 |
535 |
409 |
44 |
7.05 |
259 |
63.33 |
||||||||||
Data processing |
1,530 |
1,617 |
1,245 |
1,282 |
1,168 |
(87) |
(5.38) |
362 |
30.99 |
||||||||||
Office operations |
1,834 |
1,934 |
1,545 |
1,520 |
1,521 |
(100) |
(5.17) |
313 |
20.58 |
||||||||||
Other |
1,285 |
1,164 |
975 |
1,541 |
1,087 |
121 |
10.40 |
198 |
18.22 |
||||||||||
21,210 |
26,323 |
18,452 |
19,544 |
18,567 |
(5,113) |
(19.42) |
2,643 |
14.23 |
|||||||||||
Income before income tax expense |
17,414 |
9,929 |
10,873 |
13,622 |
7,538 |
7,485 |
75.39 |
9,876 |
131.02 |
||||||||||
Income tax expense |
6,098 |
3,437 |
3,801 |
3,848 |
2,395 |
2,661 |
77.42 |
3,703 |
154.61 |
||||||||||
Net income |
$ 11,316 |
$ 6,492 |
$ 7,072 |
$ 9,774 |
$ 5,143 |
$ 4,824 |
74.31 |
% |
$ 6,173 |
120.03 |
% |
VIEWPOINT FINANCIAL GROUP, INC. Selected Financial Highlights (unaudited) |
|||||||||||
At Or For The Quarters Ended |
At Or For The Nine Months Ended |
||||||||||
September |
June |
September |
September |
September |
|||||||
2012 |
2012 |
2011 |
2012 |
2011 |
|||||||
(Dollars in thousands, except share and per share amounts) |
|||||||||||
SHARE DATA: |
|||||||||||
Basic earnings per common share |
$ 0.30 |
$ 0.17 |
$ 0.16 |
$ 0.70 |
$ 0.51 |
||||||
Diluted earnings per common share |
0.30 |
0.17 |
0.16 |
0.70 |
0.51 |
||||||
Dividends declared per share |
0.08 |
0.06 |
0.05 |
0.20 |
0.15 |
||||||
Total shareholders' equity |
516,353 |
505,575 |
406,686 |
||||||||
Common shareholders' equity per share of common stock (Book value per share) |
13.05 |
12.85 |
11.87 |
||||||||
Tangible book value per share - Non-GAAP 1 |
12.25 |
12.06 |
11.83 |
||||||||
Market value per share for the quarter: |
|||||||||||
High |
19.50 |
16.72 |
14.00 |
19.50 |
14.00 |
||||||
Low |
15.88 |
14.79 |
10.81 |
13.19 |
10.81 |
||||||
Close |
19.17 |
15.64 |
11.45 |
19.17 |
11.45 |
||||||
Shares outstanding at end of period |
39,579,667 |
39,344,167 |
34,262,491 |
39,579,667 |
34,262,491 |
||||||
Weighted average common shares outstanding - basic |
37,362,535 |
37,116,322 |
32,468,640 |
35,348,911 |
32,422,921 |
||||||
Weighted average common shares outstanding - diluted |
37,466,031 |
37,236,213 |
32,497,283 |
35,475,596 |
32,479,092 |
||||||
KEY RATIOS: |
|||||||||||
Return on average common shareholders' equity |
8.82 |
% |
5.15 |
% |
5.02 |
% |
6.96 |
% |
5.40 |
% |
|
Return on average assets |
1.25 |
0.76 |
0.69 |
0.99 |
0.77 |
||||||
Efficiency ratio2 |
55.37 |
72.03 |
68.29 |
62.76 |
69.99 |
||||||
Tier 1 risk-based capital ratio3 |
22.16 |
22.55 |
21.20 |
||||||||
Total risk-based capital ratio3 |
23.08 |
23.47 |
21.93 |
||||||||
Tier 1 leverage ratio3 |
13.54 |
13.95 |
12.31 |
||||||||
Tangible equity to tangible assets - Non-GAAP 1 |
13.45 |
12.96 |
12.54 |
||||||||
Number of employees - full time equivalent |
555 |
620 |
579 |
||||||||
1 |
See the section labeled "Supplemental Information - Non-GAAP Financial Measures" at the end of this document. |
2 |
Calculated by dividing total noninterest expense by net interest income plus noninterest income, excluding gain (loss) on sale of foreclosed assets, impairment of goodwill, gains from securities transactions and other nonrecurring items. |
3 |
Calculated at the ViewPoint Financial Group, Inc. level, which is subject to the capital adequacy requirements of the Federal Reserve. On December 19, 2011, the Bank converted its charter from a federal thrift charter to a national banking charter, with regulatory oversight by the OCC. |
VIEWPOINT FINANCIAL GROUP, INC. Selected Financial Highlights (unaudited) |
|||||||||||
Ending Balances At |
|||||||||||
September |
June |
March |
December |
September |
|||||||
(Dollars in thousands) |
2012 |
2012 |
2012 |
2011 |
2011 |
||||||
Loans: |
|||||||||||
Real Estate: |
|||||||||||
One- to four- family |
$ 400,951 |
$ 435,486 |
$ 372,070 |
$ 379,944 |
$ 382,819 |
||||||
Commercial |
794,619 |
760,609 |
624,057 |
585,328 |
546,914 |
||||||
Home equity/home improvement |
141,152 |
144,147 |
139,339 |
140,966 |
140,945 |
||||||
Total real estate loans |
1,336,722 |
1,340,242 |
1,135,466 |
1,106,238 |
1,070,678 |
||||||
Automobile |
39,271 |
37,376 |
32,867 |
33,027 |
32,525 |
||||||
Other consumer |
23,319 |
25,267 |
17,464 |
18,143 |
18,394 |
||||||
Total consumer loans |
62,590 |
62,643 |
50,331 |
51,170 |
50,919 |
||||||
Commercial and industrial: |
|||||||||||
Warehouse lines of credit |
25,936 |
16,965 |
19,072 |
16,141 |
- |
||||||
Commercial |
226,391 |
180,706 |
51,244 |
54,479 |
44,014 |
||||||
Gross loans held for investment |
1,651,639 |
1,600,556 |
1,256,113 |
1,228,028 |
1,165,611 |
||||||
Mortgage loans held for sale |
1,014,445 |
925,637 |
734,408 |
834,352 |
691,204 |
||||||
Gross loans |
$ 2,666,084 |
$ 2,526,193 |
$ 1,990,521 |
$ 2,062,380 |
$ 1,856,815 |
||||||
Nonaccruing loans: 1 |
|||||||||||
One- to four- family real estate |
$ 5,142 |
$ 4,158 |
$ 4,987 |
$ 5,340 |
$ 4,896 |
||||||
Commercial real estate |
16,572 |
16,378 |
15,774 |
16,076 |
10,768 |
||||||
Home equity/home improvement |
1,519 |
1,112 |
1,170 |
1,226 |
1,330 |
||||||
Consumer |
251 |
36 |
29 |
26 |
- |
||||||
Commercial and industrial |
4,597 |
873 |
467 |
430 |
445 |
||||||
Total non-performing loans |
28,081 |
22,557 |
22,427 |
23,098 |
17,439 |
||||||
Foreclosed assets |
3,850 |
3,323 |
2,021 |
2,293 |
2,098 |
||||||
Total non-performing assets |
$ 31,931 |
$ 25,880 |
$ 24,448 |
$ 25,391 |
$ 19,537 |
||||||
Total non-performing assets to total assets |
0.88 |
% |
0.70 |
% |
0.80 |
% |
0.80 |
% |
0.60 |
% |
|
Total non-performing loans to total loans 2 |
1.70 |
1.41 |
1.79 |
1.88 |
1.50 |
||||||
Allowance for loan losses to non-performing loans |
70.63 |
85.25 |
80.36 |
75.71 |
94.82 |
||||||
Allowance for loan losses to total loans 2 |
1.20 |
1.20 |
1.43 |
1.42 |
1.42 |
||||||
Troubled Debt Restructured Loans: |
|||||||||||
Performing troubled debt restructurings: |
|||||||||||
One- to four- family real estate |
$ 682 |
$ 498 |
$ 374 |
$ 136 |
$ 280 |
||||||
Commercial real estate |
3,087 |
3,087 |
3,087 |
2,860 |
2,860 |
||||||
Home equity/home improvement |
106 |
45 |
106 |
107 |
- |
||||||
Consumer |
88 |
107 |
121 |
142 |
48 |
||||||
Commercial and industrial |
213 |
20 |
21 |
26 |
- |
||||||
Total |
$ 4,176 |
$ 3,757 |
$ 3,709 |
$ 3,271 |
$ 3,188 |
||||||
Nonaccruing troubled debt restructurings: |
|||||||||||
One- to four- family real estate |
$ 1,709 |
$ 1,103 |
$ 1,093 |
$ 843 |
$ 855 |
||||||
Commercial real estate |
8,849 |
8,952 |
9,063 |
9,266 |
9,264 |
||||||
Home equity/home improvement |
234 |
75 |
77 |
81 |
- |
||||||
Consumer |
88 |
- |
13 |
18 |
- |
||||||
Commercial and industrial |
105 |
281 |
287 |
212 |
214 |
||||||
Total |
$ 10,985 |
$ 10,411 |
$ 10,533 |
$ 10,420 |
$ 10,333 |
||||||
Allowance for loan losses: |
|||||||||||
Balance at beginning of period |
$ 19,229 |
$ 18,023 |
$ 17,487 |
$ 16,535 |
$ 16,159 |
||||||
Provision expense |
814 |
1,447 |
895 |
1,229 |
581 |
||||||
Charge-offs |
(412) |
(358) |
(496) |
(408) |
(314) |
||||||
Recoveries |
204 |
117 |
137 |
131 |
109 |
||||||
Balance at end of period |
$ 19,835 |
$ 19,229 |
$ 18,023 |
$ 17,487 |
$ 16,535 |
||||||
Net Charge-Offs (Recoveries) |
|||||||||||
One- to four- family real estate |
$ 15 |
$ 57 |
$ 77 |
$ 161 |
$ (4) |
||||||
Commercial real estate |
2 |
- |
- |
- |
(2) |
||||||
Home equity/home improvement |
79 |
63 |
- |
72 |
9 |
||||||
Consumer |
143 |
111 |
90 |
62 |
77 |
||||||
Commercial and industrial |
(31) |
10 |
192 |
(18) |
125 |
||||||
Total |
$ 208 |
$ 241 |
$ 359 |
$ 277 |
$ 205 |
1 |
Includes nonaccruing troubled debt restructurings. |
2 |
Total loans does not include loans held for sale. |
VIEWPOINT FINANCIAL GROUP, INC. Average Balances and Yields/Rates |
||||||||||
For The Quarters Ended |
||||||||||
September |
June |
March |
December |
September |
||||||
2012 |
2012 |
2012 |
2011 |
2011 |
||||||
Loans: |
(Dollars in thousands) |
|||||||||
One- to four- family real estate |
$ 407,216 |
$ 430,696 |
$ 371,257 |
$ 377,106 |
$ 381,322 |
|||||
Loans held for sale |
886,743 |
681,095 |
661,688 |
736,745 |
416,924 |
|||||
Commercial real estate |
762,521 |
724,775 |
582,710 |
556,909 |
524,516 |
|||||
Home equity/home improvement |
143,125 |
145,095 |
140,754 |
140,000 |
141,483 |
|||||
Consumer |
63,142 |
62,192 |
50,635 |
51,225 |
51,246 |
|||||
Commercial and industrial: |
||||||||||
Warehouse lines of credit |
22,639 |
16,013 |
15,865 |
5,796 |
- |
|||||
Commercial |
183,870 |
169,567 |
53,654 |
46,130 |
43,806 |
|||||
Less: deferred fees and allowance for loan loss |
(19,113) |
(17,803) |
(16,812) |
(16,155) |
(16,135) |
|||||
Loans receivable |
2,450,143 |
2,211,630 |
1,859,751 |
1,897,756 |
1,543,162 |
|||||
Securities |
914,818 |
976,611 |
950,906 |
1,147,794 |
1,237,853 |
|||||
Overnight deposits |
49,740 |
33,241 |
33,809 |
43,787 |
73,236 |
|||||
Total interest-earning assets |
$ 3,414,701 |
$ 3,221,482 |
$ 2,844,466 |
$ 3,089,337 |
$ 2,854,251 |
|||||
Deposits: |
||||||||||
Interest-bearing demand |
$ 474,342 |
$ 505,569 |
$ 473,687 |
$ 485,897 |
$ 484,926 |
|||||
Savings and money market |
894,916 |
892,844 |
759,590 |
758,191 |
753,252 |
|||||
Time |
476,666 |
529,928 |
472,097 |
559,169 |
634,754 |
|||||
FHLB advances and other borrowings |
863,949 |
626,055 |
610,255 |
750,202 |
458,620 |
|||||
Total interest-bearing liabilities |
$ 2,709,873 |
$ 2,554,396 |
$ 2,315,629 |
$ 2,553,459 |
$ 2,331,552 |
|||||
Total assets |
$ 3,607,101 |
$ 3,427,807 |
$ 2,975,818 |
$ 3,216,502 |
$ 2,982,615 |
|||||
Non-interest-bearing demand deposits |
338,074 |
316,237 |
213,220 |
204,458 |
193,725 |
|||||
Total deposits |
2,183,998 |
2,244,578 |
1,918,594 |
2,007,715 |
2,066,657 |
|||||
Total shareholders' equity |
513,431 |
504,596 |
411,049 |
406,139 |
410,078 |
|||||
Yields/Rates: |
||||||||||
One- to four- family real estate |
5.40 |
% |
5.53 |
% |
5.08 |
% |
5.16 |
% |
5.29 |
% |
Loans held for sale |
4.11 |
4.10 |
4.18 |
4.22 |
4.36 |
|||||
Commercial real estate |
6.44 |
6.41 |
6.22 |
6.39 |
6.60 |
|||||
Home equity/home improvement |
5.41 |
5.58 |
5.56 |
5.67 |
5.71 |
|||||
Consumer |
6.03 |
6.43 |
6.13 |
6.47 |
6.83 |
|||||
Commercial and industrial: |
||||||||||
Warehouse lines of credit |
3.82 |
3.31 |
3.29 |
3.43 |
- |
|||||
Commercial |
5.98 |
6.08 |
5.80 |
6.24 |
6.36 |
|||||
Loans receivable |
5.34 |
5.48 |
5.23 |
5.29 |
5.66 |
|||||
Securities |
1.85 |
1.97 |
2.12 |
2.16 |
2.30 |
|||||
Overnight deposits |
0.23 |
0.46 |
0.22 |
0.24 |
0.24 |
|||||
Total interest-earning assets |
4.34 |
4.36 |
4.13 |
4.06 |
4.06 |
|||||
Deposits: |
||||||||||
Interest-bearing demand |
0.61 |
0.84 |
0.94 |
1.39 |
1.78 |
|||||
Savings and money market |
0.27 |
0.29 |
0.26 |
0.30 |
0.46 |
|||||
Time |
1.11 |
1.17 |
1.39 |
1.56 |
1.69 |
|||||
FHLB advances and other borrowings |
1.27 |
1.72 |
1.74 |
1.47 |
2.46 |
|||||
Total interest-bearing liabilities |
0.80 |
0.93 |
1.02 |
1.12 |
1.46 |
|||||
Net interest spread |
3.54 |
3.43 |
3.11 |
2.94 |
2.60 |
|||||
Net interest margin |
3.70 |
3.62 |
3.30 |
3.13 |
2.87 |
|||||
Cost of deposits including non-interest-bearing demand |
0.49 |
0.58 |
0.67 |
0.88 |
1.10 |
VIEWPOINT FINANCIAL GROUP, INC. SUPPLEMENTAL INFORMATION – Non-GAAP Financial Measures (unaudited) |
||||||||||
Ending Balances At |
||||||||||
September |
June |
March |
December |
September |
||||||
2012 |
2012 |
2012 |
2011 |
2011 |
||||||
(Dollars in thousands, except share and per share amounts) |
||||||||||
Calculation of Tangible Book Value per Share: |
||||||||||
Total shareholders' equity at end of period |
$ 516,353 |
$ 505,575 |
$ 412,605 |
$ 406,309 |
$ 406,686 |
|||||
Less: Goodwill |
(29,650) |
(29,203) |
(818) |
(818) |
(818) |
|||||
Identifiable intangible assets, net |
(1,793) |
(1,949) |
(371) |
(420) |
(466) |
|||||
Total tangible shareholders' equity at end of period |
$ 484,910 |
$ 474,423 |
$ 411,416 |
$ 405,071 |
$ 405,402 |
|||||
Shares outstanding at end of period |
39,579,667 |
39,344,167 |
33,703,080 |
33,700,399 |
34,262,491 |
|||||
Book value per share - GAAP |
$ 13.05 |
$ 12.85 |
$ 12.24 |
$ 12.06 |
$ 11.87 |
|||||
Tangible book value per share - Non-GAAP |
$ 12.25 |
$ 12.06 |
$ 12.21 |
$ 12.02 |
$ 11.83 |
|||||
Calculating of Tangible Equity to Tangible Assets: |
||||||||||
Total assets at end of period |
$ 3,636,033 |
$ 3,692,856 |
$ 3,041,112 |
$ 3,180,578 |
$ 3,235,278 |
|||||
Less: Goodwill |
(29,650) |
(29,203) |
(818) |
(818) |
(818) |
|||||
Identifiable intangible assets, net |
(1,793) |
(1,949) |
(371) |
(420) |
(466) |
|||||
Total tangible assets at end of period |
$ 3,604,590 |
$ 3,661,704 |
$ 3,039,923 |
$ 3,179,340 |
$ 3,233,994 |
|||||
Equity to assets - GAAP |
14.20% |
13.69% |
13.57% |
12.77% |
12.57% |
|||||
Tangible common equity to tangible assets - Non-GAAP |
13.45% |
12.96% |
13.53% |
12.74% |
12.54% |
SOURCE ViewPoint Financial Group, Inc.
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