VIST Financial Corp. Announces 2010 Third Quarter Earnings & Cash Dividend

Oct 26, 2010, 08:45 ET from VIST Financial Corp.

WYOMISSING, Pa., Oct. 26 /PRNewswire-FirstCall/ -- VIST Financial Corp. ("Company") (Nasdaq: VIST) reported net income for the nine months ended September 30, 2010 of $2,637,000, a $2,459,000 increase over net income of $178,000 for the same period in 2009.  The Company also reported net loss for the three months ended September 30, 2010 of $602,000, a $757,000 decrease over a net income of $155,000 for the same period in 2009.

The Company further reported that the board of directors declared a cash dividend of $0.05 per share on the Company's common stock to shareholders of record on November 5, 2010 payable November 15, 2010.

Commenting on the third quarter 2010, Robert D. Davis, President and Chief Executive Officer of VIST Financial Corp. said, "We are pleased with the progress we are making in our core operating results, however, those positive results continue to be significantly offset by additional credit provisions, elevated other real estate owned ('OREO') expense and non-cash, other than temporary impairment ('OTTI') charges.  Consistent with our prior public commentary, the lagging effects of the recession on our national and regional business climate will continue to influence our financial performance for some time to come."

"During the quarter, we experienced strong loan growth of $32 million or 3.6% over the second quarter of this year.  We expect this growth to continue through the fourth quarter.  Our sales force also generated equally strong core deposit growth."

Davis continued, "We experienced an improvement in our net interest margin which we expect to remain stable through the balance of this year.  Importantly, our non-interest, fee-based revenue from retail banking, insurance, residential mortgage, and wealth management businesses represents 32% of our total net revenue."

Commenting on capital strength, Davis continued, "As reported during the second quarter of this year, we raised $5.2 million in new capital through the issuance of 644,000 shares of common stock at $8 per share to two institutional investors who specialize in the banking sector.  The Company's capital ratios continue to exceed all regulatory guidelines for a well-capitalized institution."

Davis concluded, "We are pleased that our board of directors has declared a cash dividend.  By this action, our board respects both the need to preserve capital while demonstrating confidence in our future operating results."

Net Interest Income

For the nine months ended September 30, 2010, net interest income before the provision for loan losses increased 16.3% to $29,999,000 compared to $25,795,000 for the same period in 2009.  The increase in net interest income for the nine months resulted from a 2.0% increase in total interest income to $47,625,000 from $46,678,000 and a 15.6% reduction in total interest expense to $17,626,000 from $20,883,000.  For the three months ended September 30, 2010, net interest income before the provision for loan losses increased 12.6% to $10,176,000 compared to $9,041,000 for the same period in 2009.  The increase in net interest income for the three months resulted from a 0.2% decrease in total interest income to $15,788,000 from $15,824,000 and a 17.3% decrease in total interest expense to $5,612,000 from $6,783,000.

The increase in total interest income for the nine months ended September 30, 2010 resulted primarily from an increase in average earning assets compared to the same periods in 2009.  The decrease in total interest income for the three months ended September 30, 2010 resulted primarily from a decrease in interest rates on mortgage and consumer loans and available for sale investment securities.  Average earning assets for the nine and three month periods ended September 30, 2010 increased $76,481,000 and $55,595,000, respectively, compared to the same periods in 2009 due primarily to growth in federal funds sold, available for sale investment securities and commercial loans.

The reduction in total interest expense for the nine and three months ended September 30, 2010 resulted primarily from lower interest rates compared to the same periods in 2009.  Average interest-bearing liabilities for the nine and three months ended September 30, 2010 increased $79,180,000 and $46,049,000, respectively, compared to the same periods in 2009.  The increases in interest-bearing liabilities are due primarily to an increase in average interest-bearing deposits for the nine and three months ended September 30, 2010 of $122,755,000 and $82,830,000, respectively, offset by a net decrease in average securities sold under agreements to repurchase and average long term borrowings for the nine and three months ended September 30, 2010 of $44,597,000 and $35,449,000, respectively, compared to the same periods in 2009.

The provision for loan losses for the nine months ended September 30, 2010 was $8,160,000 compared to $6,525,000 for the same period in 2009.  The provision for loan losses for the three months ended September 30, 2010 was $3,550,000 compared to $1,400,000 for the same period in 2009.  As of September 30, 2010, the allowance for loan losses was $14,418,000 compared to $11,449,000 as of December 31, 2009, an annualized increase of 34.6%.  The increase in the provision is due primarily to economic conditions and the result of management's evaluation and classification of the credit quality of the loan portfolio utilizing a qualitative and quantitative internal loan review process.  At September 30, 2010, total non-performing loans were $26,134,000 or 2.8% of total loans compared to $26,951,000 or 3.0% of total loans at December 31, 2009.  The $817,000 decrease in non-performing loans from December 31, 2009 to September 30, 2010, was due primarily to pay-downs and charge-offs of non-performing commercial real estate loans.  Management considers the current allowance for loan losses adequate as of September 30, 2010.

Net interest income after the provision for loan losses for the nine months ended September 30, 2010 and 2009 was $21,839,000 and $19,270,000, respectively.  Net interest income after the provision for loan losses for the three months ended September 30, 2010 and 2009 was $6,626,000 and $7,641,000, respectively.

For the nine months ended September 30, 2010, the net interest margin on a fully taxable equivalent basis was 3.44% as compared to 3.15% for the same period in 2009.  For the three months ended September 30, 2010, the net interest margin on a fully taxable equivalent basis was 3.48% as compared to 3.24% for the same period in 2009 and 3.05% for the second quarter of 2009.  The increase in net interest margin for the comparative nine and three month periods ended September 30, 2010 was due mainly to lower cost of funds compared to the same periods in 2009.

Non-Interest Income

Total non-interest income for the nine months ended September 30, 2010 increased 21.9% to $15,843,000 compared to $13,002,000 for the same period in 2009.  Total non-interest income for the three months ended September 30, 2010 increased 54.9% to $4,386,000 compared to $2,831,000 for the same period in 2009.

For the nine months ended September 30, 2010, customer service fees decreased to $1,610,000 from $1,854,000, or 13.2%, for the same period in 2009.  For the three months ended September 30, 2010, customer service fees decreased to $478,000 from $600,000, or 20.3%, for the same period in 2009.  The decrease for the comparative nine and three month periods is due primarily to a decrease in commercial account analysis fees, uncollected funds charges and non-sufficient funds charges.

For the nine months ended September 30, 2010, revenue from mortgage banking activities decreased to $631,000 from $963,000, or 34.5%, for the same period in 2009.  For the three months ended September 30, 2010, revenue from mortgage banking activities decreased to $266,000 from $288,000, or 7.6%, for the same period in 2009.  The decrease for the comparative nine and three month periods is primarily due to a decrease in the volume of loans sold into the secondary mortgage market.  The Company operates its mortgage banking activities through VIST Mortgage, a division of VIST Bank.

For the nine months ended September 30, 2010, revenue from commissions and fees from insurance sales decreased 0.7% to $9,192,000 compared to $9,254,000 for the same period in 2009.  For the three months ended September 30, 2010, revenue from commissions and fees from insurance sales decreased 7.2% to $3,024,000 compared to $3,260,000 for the same period in 2009.  The decrease for the comparative nine and three month periods is mainly attributed to a decrease in contingency income on insurance products sold through VIST Insurance, LLC, a wholly owned subsidiary of the Company.

For the nine months ended September 30, 2010, revenue from brokerage and investment advisory commissions and fee activity decreased to $565,000 from $594,000, or 4.9%, for the same period in 2009.  For the three months ended September 30, 2010, revenue from brokerage and investment advisory commissions and fee activity increased to $279,000 from $112,000, or 149.1%, for the same period in 2009.  Fluctuations for the comparative nine and three month periods is due primarily to the volume of investment advisory services offered through VIST Capital Management, LLC, a wholly owned subsidiary of the Company.

For the nine months ended September 30, 2010, earnings on investment in life insurance increased to $302,000 from $280,000, or 7.9%, for the same period in 2009.  For the three months ended September 30, 2010, earnings on investment in life insurance increased to $111,000 from $96,000, or 15.6%, for the same period in 2009.  The increase for the comparative nine and three month periods is due primarily to increased earnings credited on the Company's bank owned life insurance.

For the nine months ended September 30, 2010, revenue from other commissions and fees increased to $1,464,000 from $1,451,000, or 0.9%, for the same period in 2009.  For the three months ended September 30, 2010, revenue from other commissions and fees decreased to $402,000 from $480,000, or 16.3%, for the same period in 2009.  The increase for the comparative nine month periods and the decrease for the comparative three month periods is due primarily to the volume of customer debit card transactions processed through the debit card network interchange.

For the nine months ended September 30, 2010, other income including gain on sale of equity interest increased to $2,385,000 from $573,000 for the same period in 2009.  For the three months ended September 30, 2010, other income increased to $269,000 from ($75,000) for the same period in 2009.  Other income including gain on sale of equity interest increase for the comparative nine month periods is due primarily to a $1,875,000 gain recognized on the sale of a 25% equity interest in First HSA, LLC related to the transfer of approximately $89,000,000 of Health Savings Account ("HSA") deposits in the second quarter of 2010.  The increase in other income including gain on sale of equity interest for the comparative three month periods is due primarily to a $272,000 premium paid to the Company resulting from a counterparty exercising a call option to terminate an interest rate swap.

For the nine months ended September 30, 2010, net realized gains on sales of available for sale securities were $465,000 compared to net realized gains on sales of available for sale securities of $351,000 for the same period in 2009.  For the three months ended September 30, 2010, net realized gains on sales of available for sale securities were $179,000 compared to net realized gains on sales of available for sale securities of $66,000 for the same period in 2009.  The net securities gains are primarily from the planned sale of existing available for sale investment securities.

For the nine months ended September 30, 2010, net credit impairment losses recognized in earnings resulting from other-than-temporary impairment ("OTTI") losses on investment securities were $771,000 compared to net credit impairment losses recognized in earnings resulting from OTTI losses on investment securities of $2,318,000 for the same period in 2009.  For the three month period ended September 30, 2010, net credit impairment losses recognized in earnings resulting from OTTI losses on investment securities were $622,000 compared to net credit impairment losses recognized in earnings resulting from OTTI losses on investment securities of $1,996,000 for the same period in 2009.  The net credit impairment losses relate to OTTI charges for estimated credit losses on available for sale and held to maturity pooled trust preferred securities.  For the nine and three months ended September 30, 2010, the OTTI losses recognized on available for sale and held to maturity pooled trust preferred securities resulted primarily from changes in the underlying cash flow assumptions used in determining credit losses due to the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Non-Interest Expense

Total non-interest expense for the nine months ended September 30, 2010 increased 5.8% to $35,618,000 compared to $33,669,000 for the same period in 2009.  Total non-interest expense for the three months ended September 30, 2010 increased 17.0% to $12,663,000 compared to $10,823,000 for the same period in 2009.

Salaries and benefits were $16,422,000 for the nine months ended September 30, 2010, a decrease of 2.3% compared to $16,816,000 for the same period in 2009.  Salaries and benefits were $5,584,000 for the three months ended September 30, 2010, an increase of 3.9% compared to $5,374,000 for the same period in 2009.  The decrease in salaries and benefits for the comparative nine month periods is due primarily to a decrease in employer 401(k) matching contributions and commissions paid.  The increase in salaries and benefits for the comparative three month periods is due primarily to an increase in employee medical insurance costs and the addition of a Chief Information Officer.  Included in salaries and benefits for the nine months ended September 30, 2010 and 2009 were stock-based compensation costs of $112,000 and $138,000, respectively.  Included in salaries and benefits for the three months ended September 30, 2010 and 2009 were stock-based compensation costs of $36,000 and $61,000, respectively.  Total commissions paid for the nine months ended September 30, 2010 and 2009 were $806,000 and $1,081,000, respectively.  Total commissions paid for the three months ended September 30, 2010 and 2009 were $310,000 and $345,000, respectively.

For the nine months ended September 30, 2010, occupancy expense and furniture and equipment expense increased to $5,215,000 from $4,919,000, or 6.0%, for the same period in 2009.  For the three months ended September 30, 2010, occupancy expense and furniture and equipment expense decreased to $1,712,000 from $1,729,000, or 1.0%, for the same period in 2009.  The increase for the comparative nine month periods is due primarily to an increase in building lease expense, equipment maintenance and software maintenance expense.

For the nine months ended September 30, 2010, marketing and advertising expense decreased to $792,000 from $813,000, or 2.6%, for the same period in 2009.  For the three months ended September 30, 2010, advertising and marketing expense increased to $285,000 from $208,000, or 37.0%, for the same period in 2009.  The decrease for the comparative nine month periods is due primarily to a reduction in marketing costs associated with market research, media space, media production and special events.  The increase for the comparative three month periods is due primarily to an increase in marketing costs associated with business development and direct mail initiatives.

For the nine months ended September 30, 2010, professional services expense increased to $2,104,000 from $1,919,000, or 9.6%, for the same period in 2009.  For the three months ended September 30, 2010, professional services expense increased to $750,000 from $545,000, or 37.6%, for the same period in 2009.  The increase for the comparative nine and three month periods is due primarily to an increase in accounting fees for accounting and accounting related services and consulting fees associated with various corporate projects.

For the nine months ended September 30, 2010, outside processing expense decreased to $2,921,000 from $3,051,000, or 4.3%, for the same period in 2009.  For the three months ended September 30, 2010, outside processing expense increased to $1,036,000 from $1,014,000, or 2.2%, for the same period in 2009.  The decrease for the comparative nine month periods is due primarily to a decrease in costs incurred for computer services, network fees and data line charges.  The increase for the comparative three month periods is due primarily to an increase in costs incurred for computer services, internet banking development and training expenses.

For the nine months ended September 30, 2010, FDIC deposit and other insurance expense decreased to $1,668,000 from $1,914,000, or 12.9%, for the same period in 2009.  For the three months ended September 30, 2010, FDIC deposit and other insurance expense increased to $612,000 from $486,000, or 25.9%, for the same period in 2009.  The decrease in FDIC deposit and other insurance expense for the comparative nine month periods is due primarily to a $580,000 special industry-wide FDIC deposit insurance premium assessed in 2009.  The increase in FDIC deposit and other insurance expense for the comparative three month periods is due primarily to an increase in interest-bearing deposits and time deposits.

For the nine months ended September 30, 2010, OREO expense increased to $3,263,000 from $975,000, or 234.7%, for the same period in 2009.  For the three months ended September 30, 2010, OREO expense increased to $1,571,000 from $357,000, or 340.1%, for the same period in 2009.  The increase in OREO expense for the comparative nine and three month periods is due primarily to an increase in costs associated with adjusting foreclosed properties to fair value after these assets have been classified as OREO, as well as other costs to operate and maintain OREO property during the holding period.

Income Tax Expense

Income tax benefit for the nine months ended September 30, 2010 was $573,000, a 63.6% decrease as compared to an income tax benefit of $1,575,000 for the nine months ended September 30, 2009.  Income tax benefit for the three months ended September 30, 2010 was $1,049,000, a 107.3% increase as compared to an income tax benefit of $506,000 for the three months ended September 30, 2009.  The income tax benefit decrease for the comparative nine month periods is due primarily to an increase in net income before income taxes.  The income tax benefit increase for the comparative three month periods is due primarily to a decrease in net income before income taxes.  Included in income tax expense for the nine and three months ended September 30, 2010 and 2009 is a federal tax benefit from a $5,000,000 investment in an affordable housing, corporate tax credit limited partnership.

Earnings Per Share

Diluted earnings per common share for the nine months ended September 30, 2010 were $0.22 on average shares outstanding of 6,236,889 compared to diluted (loss) per common share of ($0.18) on average shares outstanding of 5,774,006 for the nine months ended September 30, 2009.  Diluted (loss) per common share for the three months ended September 30, 2010 were ($0.16) on average shares outstanding of 6,511,195 compared to diluted (loss) per common share of ($0.04) on average shares outstanding of 5,794,883 for the three months ended September 30, 2009.  The increase in diluted earnings per share for the comparative nine month periods is due primarily to an increase in net income available to common shareholders.  The decrease in diluted earnings per share for the comparative three month periods is due primarily to a decrease in net income available to common shareholders.

Assets, Liabilities and Equity

Total assets as of September 30, 2010 increased $51,981,000, or 5.3% annualized, to $1,360,700,000 compared to $1,308,719,000 at December 31, 2009.  Total gross loans as of September 30, 2010 increased $16,615,000, or 2.4% annualized, to $927,579,000 compared to $910,964,000 at December 31, 2009.  Total federal funds sold as of September 30, 2010 increased $45,575,000, or 717.0% annualized, to $54,050,000 compared to $8,475,000 at December 31, 2009.  Total deposits increased $57,504,000, or 7.5% annualized, to $1,078,402,000 compared to $1,020,898,000 at December 31, 2009 due primarily to an increase in NOW, MMDA and Savings deposits.  Total borrowings as of September 30, 2010, decreased $17,957,000, or 15.5% annualized, to $136,897,000 compared to $154,854,000 at December 31, 2009.

Shareholders' equity as of September 30, 2010 increased $10,362,000, or 11.0% annualized, to $135,790,000 compared to $125,428,000 at December 31, 2009.  In the second quarter of 2010, the Company completed the issuance of approximately $4.8 million in common stock, net of offering costs.  Also included in shareholders' equity is an unrealized loss position on available for sale and held to maturity securities, net of taxes, as of September 30, 2010, of $244,000 compared to an unrealized loss position on available for sale securities, net of taxes, of $4,512,000 at December 31, 2009.

Quarterly Shareholder and Investor Conference Call

VIST Financial will host a quarterly shareholder and investor conference call on Wednesday, October 27, 2010 at 8:30 a.m. EDT.  Interested parties can join the conference call and ask questions by dialing 877.303.1593 or listening through the computer by clicking on the following link:

http://tinyurl.com/2d2glfp

The conference call can also be accessed through a link located under the Investor Relations page within VIST Financial Corp's website:  http://www.VISTfc.com.

The conference call will be archived for 90 days and will be available at the link above and on the Company's Investor Relations webpage.

VIST Financial Corp. is diversified financial services company headquartered in Wyomissing, PA, offering banking, insurance, investments, wealth management, and title insurance services throughout Berks, Southern Schuylkill, Montgomery, Delaware, Philadelphia and Lancaster Counties.

This release may contain forward-looking statements with respect to the Company's beliefs, plans, objectives, goals, expectations, anticipations, estimates, and intentions that are subject to significant risks and uncertainties, and are subject to change based on various factors, some of which are beyond the Company's control. The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company.

VIST FINANCIAL CORP. AND SUBSIDIARIES

CONSOLIDATED SELECTED FINANCIAL DATA

(Dollar amounts in thousands, except share data)










September 30,


December 31,




2010


2009




(unaudited)



Assets





Federal funds sold


$             54,050


$               8,475

Investment securities and interest bearing cash


272,170


271,475

Federal Home Loan Bank stock


5,715


5,715

Mortgage loans held for sale


3,390


1,962

Loans:






Commercial loans


753,825


731,256


Consumer loans


120,219


132,054


Mortgage loans


53,535


47,654

Total loans


$           927,579


$           910,964







Earning assets


$        1,262,904


$        1,198,591







Total assets


$        1,360,700


$        1,308,719







Liabilities and shareholders' equity





Deposits:






Non-interest bearing deposits


$           110,378


$           102,302


NOW, money market and savings


507,340


458,987


Time deposits


460,684


459,609

Total deposits


$        1,078,402


$        1,020,898







Borrowings:






Securities sold under agreements to repurchase


$           108,885


$           115,196


Long-term debt


10,000


20,000


Junior subordinated debt, at fair value


18,012


19,658

Total borrowings


$           136,897


$           154,854







Total Liabilities


$        1,224,910


$        1,183,291







Shareholders' equity                                    


$           135,790


$           125,428







Total liabilities and shareholders' equity


$        1,360,700


$        1,308,719







Actual common shares outstanding


6,514,526


5,808,690

Book value per common share


$16.90


$17.22

Tangible book value per common share


$10.06


$9.62



VIST FINANCIAL CORP. AND SUBSIDIARIES

CONSOLIDATED SELECTED FINANCIAL DATA

(Dollar amounts in thousands, except share data)





Asset Quality Data




As Of and For The Period Ended








Nine Months


Twelve Months




September 30,


December 31,




2010


2009




(unaudited)



Non-accrual loans


$             25,938


$             25,140

Loans past due 90 days or more still accruing


196


1,811


Total non-performing loans


26,134


26,951

Other real estate owned


3,531


5,221


Total non-performing assets


$             29,665


$             32,172







Renegotiated troubled debt


$             12,975


$               6,245







Loans outstanding at end of period


$           927,579


$           910,964

Allowance for loan losses


14,418


11,449







Net charge-offs to average loans (annualized)


0.77%


0.58%

Allowance for loan losses as a percent of total loans


1.55%


1.26%

Allowance for loan losses as a percent of total non-performing loans

55.17%


42.49%



VIST FINANCIAL CORP. AND SUBSIDIARIES

CONSOLIDATED SELECTED FINANCIAL DATA

(Dollar amounts in thousands)





Average Balances


Average Balances




For the Three Months Ended


For the Nine Months Ended




(unaudited)


(unaudited)




September 30,


September 30,


September 30,


September 30,




2010


2009


2010


2009

Assets









Federal funds sold

$             43,386


$               8,426


$             26,439


$               9,457

Investment securities and interest bearing cash

263,770


249,503


292,235


239,578

Federal Home Loan Bank stock

5,715


5,715


5,715


5,715

Mortgage loans held for sale

2,645


2,604


1,901


3,828

Loans:










Commercial loans

732,027


711,597


727,124


703,738


Consumer loans

122,260


138,760


126,345


139,844


Mortgage loans

53,120


45,008


50,071


45,474

Total loans

$           907,407


$           895,365


$           903,540


$           889,056











Interest-earning assets

$        1,217,208


$        1,161,613


$        1,224,115


$        1,147,634











Goodwill and intangible assets

44,357


44,161


44,157


44,329

Total assets

$        1,326,961


$        1,264,308


$        1,339,987


$        1,252,164











Liabilities and shareholders' equity








Deposits:









Non-interest bearing deposits

$           114,340


$           111,489


$           109,257


$           107,787












Interest bearing deposits:










NOW, money market and savings

475,332


401,897


502,361


358,062



Time deposits

453,309


443,914


442,491


464,035


Total Interest-Bearing Deposits

928,641


845,811


944,852


822,097











Total deposits

$        1,042,981


$           957,300


$        1,054,109


$           929,884











Short term borrowings

$                    20


$                  662


$               4,880


$               3,576

Securities sold under agreements to repurchase

110,499


120,948


112,135


121,823











Long-term debt

10,000


35,000


10,366


45,275

Junior subordinated debt, at fair value

19,294


19,984


19,553


19,835











Interest-bearing liabilities

1,068,454


1,022,405


1,091,786


1,012,606











Shareholders' equity                                    

$           135,902


$           121,985


$           130,766


$           123,293



VIST FINANCIAL CORP. AND SUBSIDIARIES

CONSOLIDATED SELECTED FINANCIAL DATA

(Dollar amounts in thousands, except per share data)









For the Three Months Ended


For the Nine Months Ended



(unaudited)


(unaudited)



September 30,


September 30,


September 30,


September 30,



2010


2009


2010


2009

Interest income

$             15,788


$             15,824


$             47,625


$             46,678

Interest expense

5,612


6,783


17,626


20,883


Net interest income

10,176


9,041


29,999


25,795

Provision for loan losses

3,550


1,400


8,160


6,525


Net Interest Income after provision for loan losses

6,626


7,641


21,839


19,270










Customer service fees

478


600


1,610


1,854

Mortgage banking activities

266


288


631


963

Commissions and fees from insurance sales

3,024


3,260


9,192


9,254

Brokerage and investment advisory commissions and fees

279


112


565


594

Earnings on investment in life insurance

111


96


302


280

Other commissions and fees

402


480


1,464


1,451

Other income

269


(75)


2,385


573

Net realized gains on sales of securities

179


66


465


351

 Total other-than-temporary impairment losses on investments

163


(4,026)


(783)


(4,999)

 Portion of non-credit impairment loss recognized in other comprehensive loss

(785)


2,030


12


2,681

Net credit impairment loss recognized in earnings

(622)


(1,996)


(771)


(2,318)











Total non-interest income

4,386


2,831


15,843


13,002










Salaries and employee benefits

5,584


5,374


16,422


16,816

Occupancy expense

1,057


1,124


3,274


3,074

Furniture and equipment expense

655


605


1,941


1,845

Other operating expense

5,367


3,720


13,981


11,934


Total non-interest expense

12,663


10,823


35,618


33,669

Income (loss) before income taxes

(1,651)


(351)


2,064


(1,397)

Income tax benefit

(1,049)


(506)


(573)


(1,575)


Net income (loss)

(602)


155


2,637


178


Preferred stock dividends and discount accretion

(420)


(412)


(1,259)


(1,237)


Net income (loss) available to common shareholders

$             (1,022)


$                (257)


$               1,378


$             (1,059)










Per Common Share Data:








Basic average shares outstanding

6,511,195


5,794,883


6,192,250


5,774,006

Diluted average shares outstanding

6,511,195


5,794,883


6,236,889


5,774,006

Basic earnings (loss) per common share

$               (0.16)


$               (0.04)


$                 0.22


$               (0.18)

Diluted earnings (loss) per common share

                 (0.16)


(0.04)


0.22


(0.18)

Cash dividends per common share

0.05


0.05


0.15


0.25










Profitability Ratios:








Return on average assets

-0.18%


0.05%


0.26%


0.02%

Return on average shareholders' equity

-1.76%


0.50%


2.70%


0.19%

Return on average tangible equity (equity less goodwill and intangible assets)

-2.61%


0.79%


4.07%


0.30%

Average Equity to Average Assets

10.24%


9.65%


9.76%


9.85%

Net interest margin (fully taxable equivalent)

3.48%


3.24%


3.44%


3.15%

Effective tax rate

63.54%


144.16%


-27.76%


112.74%



VIST FINANCIAL CORP. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED BALANCE SHEETS

(Dollar amounts in thousands, except share data)








September 30,


September 30,



2010


2009

Assets




Cash and due from banks    

$               15,163


$               21,825

Federal funds sold

54,050


9,485

Interest-bearing deposits in banks

31


343

Total cash and cash equivalents

69,244


31,653






Mortgage loans held for sale  

3,390


2,538

Securities available for sale      

270,049


248,811

Securities held to maturity  

2,090


3,041

Federal Home Loan Bank stock

5,715


5,715

Loans, net of allowance for loan losses  





9/2010 - $14,418; 9/2009 - $12,029

913,161


890,384

Premises and equipment, net  

5,781


6,177

Identifiable intangible assets

4,265


4,319

Goodwill  

40,249


39,982

Bank owned life insurance

19,252


18,832

FDIC prepaid deposit insurance

4,429


-

Other assets

23,075


24,943

Total assets

$          1,360,700


$          1,276,395






Liabilities and Shareholders' Equity




Liabilities




Deposits:




Non-interest bearing  

$             110,378


$             109,070

Interest bearing  

968,024


858,474

Total deposits  

1,078,402


967,544

Securities sold under agreements





to repurchase

108,885


120,918

Long-term debt

10,000


35,000

Junior subordinated debt, at fair value

18,012


19,520

Other liabilities

9,611


8,357

Total liabilities  

1,224,910


1,151,339






Shareholders' Equity




Preferred stock: $0.01 par value; authorized 1,000,000 shares; $1,000 liquidation




 preference per share; 25,000 shares of Series A 5% (increasing to 9% in 2014) cumulative




 preferred stock issued and outstanding; Less: discount of $1,587 at September 30, 2010




 and $1,908 at December 31, 2009

23,413


22,992

Common stock, $5.00 par value;  authorized 20,000,000 shares; issued:                




 6,525,010 shares at September 30, 2010 and 5,819,174 shares at December 31, 2009

32,625


29,043

Stock Warrants

2,307


2,307

Surplus

65,521


63,719

Retained earnings

12,359


12,167

Accumulated other comprehensive loss

(244)


(4,981)

Treasury stock: 10,484 shares at cost

(191)


(191)

Total shareholders' equity  

135,790


125,056

Total liabilities and shareholders' equity

$          1,360,700


$          1,276,395



SELECTED HIGHLIGHTS



Common Stock (VIST)

Cash Dividends Declared

October 2009

$       0.05

January 2010

$       0.05

April 2010

$       0.05

July 2010

$       0.05

October 2010

$       0.05







Common Stock (VIST)

Quarterly Closing Price

09/30/2009

$       5.85

12/31/2009

$       5.25

03/31/2010

$       8.97

06/30/2010

$       7.66

09/30/2010

$       7.08



VIST FINANCIAL CORP. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollar amounts in thousands, except share data)













Three Months Ended



Nine Months Ended



September 30,



September 30,



2010


2009



2010


2009

Interest Income









Interest and fees on loans

$             12,638


$             12,523



$             37,496


$             37,126

Interest on securities:









 Taxable

                 2,691


                 2,935



                 8,532


                 8,514

 Tax-exempt  

                    423


                    336



                 1,269


                    927

Dividend income

                      21


                      26



                      39


                      98

Other interest income    

                      15


                        4



                    289


                      13

Total interest income

               15,788


               15,824



               47,625


               46,678











Interest Expense









Interest on deposits

                 3,954


                 4,952



               12,694


               15,278

Interest on short-term borrowings

                      -  


                        1



                      18


                      18

Interest on securities sold under agreements to repurchase

                 1,205


                 1,134



                 3,585


                 3,297

Interest on long-term debt    

                      90


                    339



                    277


                 1,256

Interest on junior subordinated debt

                    363


                    357



                 1,052


                 1,034

Total interest expense    

                 5,612


                 6,783



               17,626


               20,883











Net interest income  

               10,176


                 9,041



               29,999


               25,795

Provision for loan losses

                 3,550


                 1,400



                 8,160


                 6,525

Net interest income after provision for loan losses

                 6,626


                 7,641



               21,839


               19,270











Other income:









Customer service fees        

                    478


                    600



                 1,610


                 1,854

Mortgage banking activities, net

                    266


                    288



                    631


                    963

Commissions and fees from insurance sales

                 3,024


                 3,260



                 9,192


                 9,254

Broker and investment advisory commissions and fees

                    279


                    112



                    565


                    594

Earnings on investment in life insurance

                    111


                      96



                    302


                    280

Other commissions and fees

                    402


                    480



                 1,464


                 1,451

Gain on sale of equity interest

                      -  


                      -  



                 1,875


                      -  

Other income  

                    269


                    (75)



                    510


                    573

Net realized gains on sales of securities

                    179


                      66



                    465


                    351

 Total other-than-temporary impairment losses on investments

                    163


               (4,026)



                  (783)


               (4,999)

 Portion of non-credit impairment loss recognized










in other comprehensive loss

                  (785)


                 2,030



                      12


                 2,681

Net credit impairment loss recognized in earnings

                  (622)


               (1,996)



                  (771)


               (2,318)











Total non-interest income

                 4,386


                 2,831



               15,843


               13,002











Other expense:









Salaries and employee benefits  

                 5,584


                 5,374



               16,422


               16,816

Occupancy expense

                 1,057


                 1,124



                 3,274


                 3,074

Furniture and equipment expense  

                    655


                    605



                 1,941


                 1,845

Marketing and advertising  expense

                    285


                    208



                    792


                    813

Identifiable intangible amortization

                    146


                    172



                    417


                    514

Professional services

                    750


                    545



                 2,104


                 1,919

Outside processing expense

                 1,036


                 1,014



                 2,921


                 3,051

FDIC deposit and other insurance expense

                    612


                    486



                 1,668


                 1,914

Other real estate owned expense

                 1,571


                    357



                 3,263


                    975

Other expense

                    967


                    938



                 2,816


                 2,748

Total non-interest expense

               12,663


               10,823



               35,618


               33,669











Income (loss) before income taxes

               (1,651)


                  (351)



                 2,064


               (1,397)

Income tax benefit

               (1,049)


                  (506)



                  (573)


               (1,575)

Net income (loss)

                  (602)


                    155



                 2,637


                    178

Preferred stock dividends and discount accretion

                  (420)


                  (412)



               (1,259)


               (1,237)

Net income (loss) available to common shareholders

$             (1,022)


$                (257)



$               1,378


$             (1,059)











Per Common Share Data









Average shares outstanding

          6,511,195


          5,794,883



          6,192,250


          5,774,006

Basic earnings (loss) per common share

$               (0.16)


$               (0.04)



$                 0.22


$               (0.18)

Average shares outstanding for diluted earnings per share

          6,511,195


          5,794,883



          6,236,889


          5,774,006

Diluted earnings (loss) per common share

$               (0.16)


$               (0.04)



$                 0.22


$               (0.18)

Cash dividends declared per common share

$                 0.05


$                 0.05



$                 0.15


$                 0.25



SOURCE VIST Financial Corp.



RELATED LINKS

http://www.vistfc.com