MediaRoom
 


ViewPoint Financial Group, Inc. Reports Second Quarter 2012 Earnings

Successful Highlands Bancshares, Inc. ("Highlands") Acquisition, Net Interest Margin Expansion and Strong Loan Growth

Jul 26, 2012

PLANO, Texas, July 26, 2012 /PRNewswire/ -- ViewPoint Financial Group, Inc. (NASDAQ: VPFG) (the "Company"), the holding company for ViewPoint Bank, N.A. (the "Bank"), announced financial results today for the quarter ended June 30, 2012. Detailed results of the quarter will be available in the Company's Quarterly Report on Form 10-Q, which will be filed today and posted on our websites, http://www.viewpointbank.com and http://www.viewpointfinancialgroup.com

Performance Highlights

  • Highlands acquisition closed April 2, 2012:  The acquisition added $501.1 million in identifiable assets, $284.1 million in net loans, and $378.4 million in deposits, all initially recorded at fair value.
  • Net interest margin increased by 32 basis points for the three months ended June 30, 2012:  Due to changes in the earning asset mix, lower deposit and borrowing rates, and the impact of the Highlands acquisition, the net interest margin increased by 32 basis points on a linked quarter basis to 3.62% for the three months ended June 30, 2012, from 3.30% for the three months ended March 31, 2012.
  • Solid loan growth in the second quarter of 2012:  Gross loans increased $535.7 million, or 26.9%, including $284.1 million in loans acquired from Highlands and initially recorded at fair value.  Excluding the Highlands acquisition, gross loans increased $251.6 million. 
  • Earnings per share:  Quarterly earnings per share were $0.17 per share, up $0.02 per share from June 30, 2011 and down $0.05 from March 31, 2012.  This included net gains of $897,000 and expenses totaling $4.7 million relating to the Highlands acquisition, the sale of VPM, severance costs and restricted stock vesting, reducing net earnings per share by $0.07.
  • Net charge-offs declined:  Net charge-offs declined by $118,000 to $241,000 for the second quarter of 2012, from $359,000 for the first quarter of 2012.

"It's been a busy and productive quarter for the company," said President and Chief Executive Officer Kevin Hanigan. "The many hours we've spent on acquisition-related activities haven't sidetracked us from our core businesses. Once again, we've increased our net interest margin, lowered our interest expense, and our asset quality has remained solid. Our lending volume continues to show strong gains, not only year over year, but from quarter to quarter."

Highlands Acquisition

On April 2, 2012, the Company completed its acquisition of Highlands, parent company of The First National Bank of Jacksboro, which operated in Dallas under the name Highlands Bank.  This was a strategic, in-market acquisition to provide growth opportunities in North Texas.  In addition, Highlands President and CEO Kevin Hanigan joined the Company and the Bank as president and chief executive officer as part of the agreement. He also was appointed to the Company's and the Bank's Boards of Directors, along with former Highlands board member Bruce Hunt. 

In this stock-for-stock transaction, Highlands shareholders received 0.6636 shares of the Company's common stock in exchange for each share of Highlands common stock.  As a result, the Company issued 5,513,061 common shares with an acquisition date fair value of total consideration paid of $86.1 million, based on the Company's closing stock price of $15.62 on April 2.  An insignificant amount of cash was paid in lieu of fractional shares.

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 provide 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. Following completion of the sale, which is expected to close during the third quarter of 2012, the Agreement provides an opportunity for the Bank to partner with HRM to continue providing the Bank's customers with residential mortgage services.

Net Interest Margin

The net interest margin for the second quarter of 2012 was 3.62%, a 32 basis point increase from the first quarter of 2012, and a 79 basis point increase from the second 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, and the impact of the Highlands acquisition.

Financial Condition

Total assets increased by $651.7 million, or 21.4%, to $3.69 billion at June 30, 2012, from $3.04 billion at March 31, 2012, primarily due to the Highlands acquisition, which added $501.1 million in identifiable assets initially recorded at fair value.

Total deposits increased by $295.8 million, or 15.3%, which was primarily due to $378.4 million in deposits acquired from Highlands, which included $140.0 million in savings and money market, $121.2 million in time, $78.7 million in non-interest bearing demand and $38.5 million in interest bearing demand deposits.  Excluding the impact of the Highlands acquisition, deposits decreased by $82.6 million, or 4.3%, from March 31, 2012, to June 30, 2012.  This decrease was primarily due to an $80.2 million decline in time deposits, which resulted from a pricing strategy designed to reduce our time deposit rates and improve our net interest margin. 

Loan Portfolio

Gross loans (including $925.6 million in mortgage loans held for sale at June 30, 2012) increased by $535.7 million, or 26.9%, to $2.53 billion at June 30, 2012, from $1.99 billion at March 31, 2012.  $284.1 million of the increase in gross loans was attributable to loans obtained in the Highlands acquisition initially recorded at fair value.  Excluding the Highlands acquisition, gross loans increased $251.6 million.

The commercial real estate portfolio increased by $136.5 million, or 21.9%, to $760.6 million at June 30, 2012, from $624.1 million at March 31, 2012, with $94.0 million of this increase due to the addition of Highlands' commercial real estate loans initially recorded at fair value.  The remaining $42.5 million increase was due to organic growth. 

Commercial and industrial ("C&I") loans increased by $127.4 million, or 181.1%, to $197.7 million at June 30, 2012, from $70.3 million at March 31, 2012, with $100.1 million of this increase due to the addition of Highlands' C&I loans initially recorded at fair value.  Net of the impact of the Highlands acquisition, C&I loans increased by $27.3 million during the second quarter, compared to no change during the first quarter of 2012.

At June 30, 2012, Warehouse Purchase Program balances ended at $908.6 million, an increase of $195.4 million, or 27.4%, from March 31, 2012.       

Results of Operations for the Quarter Ended June 30, 2012

Net income for the three months ended June 30, 2012, was $6.5 million, a decrease of $580,000, or 8.2%, from net income of $7.1 million for the three months ended March 31, 2012.  The decrease in net income during the second quarter was attributable to expenses of $4.7 million relating to the Highlands acquisition, the sale of VPM, severance costs and restricted stock vesting, partially offset by net gains of $897,000.  A $5.7 million, or 24.3%, increase in net interest income partially offset the increased expenses during the quarter.  Basic and diluted earnings per share for the three months ended June 30, 2012, were $0.17, a $0.05 decrease from $0.22 for the three months ended March 31, 2012.   Earnings per share for the three months ended June 30, 2012, was reduced by $0.07 due to the increases in noninterest expense relating to the Highlands acquisition, the sale of VPM, severance costs and restricted stock vesting, partially offset by the net gains of $897,000.

Interest income increased by $5.7 million to $35.1 million for the three months ended June 30, 2012, compared to $29.4 million for the three months ended March 31, 2012, primarily due to higher average balances in commercial real estate and C&I loans.    Accretion of the Highlands purchase discount contributed $1.4 million to the increase for the comparable periods.  Interest expense decreased by $55,000 during the three months ended June 30, 2012, compared to the three months ended March 31, 2012.

Noninterest income increased by $1.8 million to $8.5 million during the three months ended June 30, 2012, compared to $6.7 million for the three months ended March 31, 2012, primarily due to net gains of $897,000. These net gains included 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, a $116,000 gain on the sale of available for sale securities acquired from Highlands, and a $95,000 gain on the unwinding of $40 million in repurchase agreements acquired from Highlands.  The $2.0 million in gains was partially offset by $1.1 million in losses associated with the scheduled sale of VPM, including the full impairment of VPM's remaining goodwill of $818,000 and $250,000 from fixed asset disposals. 

Noninterest expense increased by $7.8 million to $26.3 million during the three months ended June 30, 2012, compared to $18.5 million for the three months ended March 31, 2012, primarily due to expenses of $4.7 million, which included Highlands related acquisition costs of $3.7 million and $493,000 in severance costs related to the Highlands acquisition and the scheduled sale of VPM.  Excluding these expenses, salaries and employee benefits expense increased by $1.6 million, primarily due to the addition of Highlands employees, and occupancy and equipment expense increased by $553,000, mostly related to rent on Highlands properties.   

Management has committed to a cost savings plan associated with the Highlands acquisition. The cost savings plan, which is expected to be substantially complete by the end of the third quarter of 2012 once the Highlands data processing conversion has been completed, is intended to streamline operations across the combined organization. The cost savings plan encompasses systems integration, employee-related charges and transaction-related costs. The Company is on track to achieve the anticipated cost savings and to begin seeing the impacts of the fully integrated, combined organization.

Results of Operations for the Six Months Ended June 30, 2012

Net income for the six months ended June 30, 2012, was $13.6 million, an increase of $2.2 million, or 18.9%, from net income of $11.4 million for the six months ended June 30, 2011.  The increase in net income was driven by higher net interest income, partially offset by increased noninterest expense and lower noninterest income.  The increased noninterest expenses included Highlands related acquisition costs of $3.9 million, $136,000 in costs related to the sale of VPM, and $514,000 in severance costs related to Highlands and VPM, as well as $308,000 in immediately vested restricted stock awarded to the Company's newly appointed CEO. 

The six months ended June 30, 2011, included a $3.4 million gain on the sale of available for sale securities and $735,000 in gains on a community development-oriented private equity fund used for Community Reinvestment Act purposes, which was partially offset by net gains of $897,000 in the six months ended June 30, 2012. Basic and diluted earnings per share for the six months ended June 30, 2012, were $0.39, a $0.04 increase from $0.35 for the six months ended June 30, 2011.   Earnings per share for the six months ended June 30, 2012, was reduced by $0.07 due to the increases in noninterest expense relating to the Highlands acquisition, the sale of VPM, severance costs and restricted stock vesting, partially offset by the net gains of $897,000.

Asset Quality

The provision for loan losses was $1.4 million for the three months ended June 30, 2012, an increase of $552,000, or 61.7%, from the three months ended March 31, 2012.  The balance of the allowance for loan losses at June 30, 2012, was $19.2 million, an increase of $1.2 million from $18.0 million at March 31, 2012, which was primarily due to increased loan production.  Net charge-offs declined to $241,000 for the second quarter of 2012, from $359,000 for the first quarter of 2012.  

Our non-performing loans to total loans ratio at June 30, 2012, was 1.41%, compared to 1.79% at March 31, 2012.  Non-performing loans increased by $130,000 to $22.6 million at June 30, 2012, from $22.4 million at March 31, 2012.  At June 30, 2012, no purchased credit impaired loans from the Highlands acquisition were included in non-performing loans; however, $560,000 of loans acquired from Highlands which were not classified as purchased credit impaired were included in the $22.6 million of non-performing loans, including $515,000 in C&I loans.  Our allowance for loan losses to non-performing loans ratio was 85.25% at June 30, 2012, compared to 80.36% as of March 31, 2012.

Conference Call

The Company will host an investor conference call to review these results on Friday, July 27, 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 #10014051. 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, National Association. ViewPoint Bank, N.A. operates 31 community bank offices, including four Highlands Bank locations in Dallas and 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

 (Dollar amounts in thousands, except share data)






June 30,


December 31,


2012


2011


(unaudited)



ASSETS




Cash and due from financial institutions

$           30,407


$           16,661

Short-term interest-bearing deposits in other financial institutions

39,571


29,687

     Total cash and cash equivalents

69,978


46,348

Securities available for sale, at fair value

467,515


433,745

Securities held to maturity (fair value: June 30, 2012 – $447,698,
   December 31, 2011 – $518,142)

430,368


500,488

Loans held for sale (includes $10,161 and $16,607 carried at fair value
    at June 30, 2012, and December 31, 2011) 

925,637


834,352

Loans held for investment (net of allowance for loan losses of
   $19,229 at June 30, 2012 and $17,487 at December 31, 2011)    

1,581,734


1,211,057

FHLB and Federal Reserve Bank stock, at cost

45,241


37,590

Bank-owned life insurance

34,491


29,007

Foreclosed assets, net

3,323


2,293

Premises and equipment, net

53,725


50,261

Goodwill

29,203


818

Accrued interest receivable

9,784


8,982

Prepaid FDIC assessment

5,719


4,967

Other assets

36,138


20,670

       Total assets

$      3,692,856


$      3,180,578





LIABILITIES AND SHAREHOLDERS' EQUITY




Deposits




   Non-interest-bearing demand

$         342,228


$         211,670

   Interest-bearing demand

509,650


498,253

   Savings and money market

885,550


759,576

   Time

491,978


493,992

     Total deposits

2,229,406


1,963,491

FHLB advances (net of prepayment penalty of $3,707 at June 30, 2012
    and $4,222 at December 31, 2011) 

875,102


746,398

Repurchase agreement

38,682


25,000

Accrued interest payable

1,298


1,220

Other liabilities

42,793


38,160

       Total liabilities

3,187,281


2,774,269





Commitments and contingent liabilities

-


-





Shareholders' equity




   Preferred stock, $.01 par value; 10,000,000 shares authorized;
     0 shares issued – June 30, 2012 and December 31, 2011      

-


-

   Common stock, $.01 par value; 90,000,000 shares  authorized;
    39,344,167 shares issued – June 30, 2012
    and 33,700,399 shares issued – December 31, 2011       

393


337

   Additional paid-in capital

367,938


279,473

   Retained earnings

153,722


144,535

   Accumulated other comprehensive income, net 

2,171


1,347

   Unearned Employee Stock Ownership Plan (ESOP) shares;  2,010,137 shares
    at June 30, 2012 and 2,102,234 shares at December 31, 2011

(18,649)


(19,383)

     Total shareholders' equity

505,575


406,309

       Total liabilities and shareholders' equity

$      3,692,856


$      3,180,578





 

 

 

VIEWPOINT FINANCIAL GROUP, INC.

Consolidated Statements of Income

 (Dollar amounts in thousands, except share and per share data)






Three Months Ended
June 30,


Six Months Ended
June 30,


2012


2011


2012


2011


(unaudited)


(unaudited)

Interest and dividend income








   Loans, including fees

$       30,290


$       20,833


$       54,610


$       41,294

   Taxable securities

4,185


6,639


8,643


13,507

   Nontaxable securities

473


473


946


946

   Interest-bearing deposits in other financial institutions

38


28


57


100

   FHLB and Federal Reserve Bank stock

141


13


247


34


35,127


27,986


64,503


55,881

Interest expense








   Deposits

3,247


6,260


6,476


12,343

   FHLB advances

2,415


2,407


4,869


4,893

   Repurchase agreement

251


204


454


405

   Other borrowings

28


150


28


298


5,941


9,021


11,827


17,939









Net interest income

29,186


18,965


52,676


37,942

Provision for loan losses

1,447


1,065


2,342


2,160

Net interest income after provision for loan losses

27,739


17,900


50,334


35,782









Non-interest income








   Service charges and fees

4,827


4,721


9,065


9,368

   Other charges and fees

165


225


293


400

   Net gain on sale of mortgage loans

2,174


1,879


4,406


3,828

   Bank-owned life insurance income

165


167


274


285

   Gain on sale of available for sale securities

116


-


116


3,415

   Loss on sale and disposition of assets

(56)


(6)


(137)


(216)

   Impairment of goodwill

(818)


(271)


(818)


(271)

   Other

1,940


921


2,044


1,294


8,513


7,636


15,243


18,103

Non-interest expense








   Salaries and employee benefits

14,110


11,542


25,834


23,396

   Acquisition costs

3,741


-


3,885


-

   Advertising

490


510


775


866

   Occupancy and equipment

1,952


1,399


3,422


2,822

   Outside professional services

691


704


1,174


1,357

   Regulatory assessments

624


498


1,205


1,457

   Data processing

1,617


1,129


2,862


2,198

   Office operations

1,934


1,477


3,479


2,931

   Other

1,164


1,009


2,139


2,102


26,323


18,268


44,775


37,129









Income before income tax expense

9,929


7,268


20,802


16,756

Income tax expense

3,437


2,411


7,238


5,345









Net income

$         6,492


$         4,857


$       13,564


$       11,411









Weighted average common shares outstanding - basic

37,116,322


32,445,527


34,331,036


32,399,683

Weighted average common shares outstanding - diluted

37,236,213


32,510,134


34,449,634


32,471,361

Per share information








Basic

$           0.17


$           0.15


$           0.39


$           0.35

Diluted

$           0.17


$           0.15


$           0.39


$           0.35

Cash dividends declared per share

$           0.06


$           0.05


$           0.12


$           0.10









 

 

 

VIEWPOINT FINANCIAL GROUP, INC.

Selected Financial Highlights (unaudited)






At or for the Quarters Ended



June


March


December


September


June



2012


2012


2011


2011


2011



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

Financial Data:











Total assets


$   3,692,856


$ 3,041,112


$ 3,180,578


$ 3,235,278


$     2,963,882

Total loans


2,507,371


1,972,894


2,045,409


1,840,830


1,550,894

Total securities


897,883


877,472


934,233


1,195,182


1,228,825

Total deposits


2,229,406


1,933,619


1,963,491


2,073,627


2,070,894

Total shareholders' equity


505,575


412,605


406,309


406,686


407,006

Net interest income


29,186


23,490


24,157


20,479


18,965

Provision for loan losses


1,447


895


1,229


581


1,065

Operating non-interest income


8,397


6,730


7,385


6,207


7,636

Gain on sale of available for sale securities


116


-


2,853


-


-

Non-interest expense


26,323


18,452


19,544


18,567


18,268

Income tax expense


3,437


3,801


3,848


2,395


2,411

Net income


6,492


7,072


9,774


5,143


4,857












Share Data:











Basic earnings per common share


$            0.17


$          0.22


$          0.31


$          0.16


$              0.15

Diluted earnings per common share


0.17


0.22


0.31


0.16


0.15

Dividends declared per share


0.06


0.06


0.05


0.05


0.05

Book value per share


12.85


12.24


12.06


11.87


11.68

Tangible book value per share - Non-GAAP (1)


12.06


12.21


12.02


11.83


11.64












Shares outstanding at end of period


39,344,167


33,703,080


33,700,399


34,262,491


34,839,491

Weighted average common shares outstanding - basic


37,116,322


31,545,748


31,617,219


32,468,640


32,445,527

Weighted average common shares outstanding - diluted


37,236,213


31,666,355


31,681,326


32,497,283


32,510,134












Key Ratios:











Tier 1 risk-based capital ratio(2)


22.55%


25.22%


24.40%


21.20%


24.93%

Total risk-based capital ratio (2)


23.47%


26.33%


25.46%


21.93%


25.79%

Tier 1 leverage ratio (2)


13.95%


13.79%


12.58%


12.31%


13.50%

Equity to total assets


13.69%


13.57%


12.77%


12.57%


13.73%

Tangible equity to tangible assets - Non-GAAP (1)


12.96%


13.53%


12.74%


12.54%


13.69%












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

(2)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.













 

 



Ending Balances At



June


March


December


September


June



2012


2012


2011


2011


2011

Deposits:


(Dollars in thousands)

Non-interest-bearing demand


$       342,228


$       231,768


$       211,670


$       207,940


$       194,704

Interest-bearing demand


509,650


488,807


498,253


496,269


482,552

Savings


176,504


168,706


155,276


155,476


156,659

Money market


695,607


581,504


592,979


596,561


575,041

IRA


13,439


11,879


11,321


10,201


10,023

Certificates


491,978


450,955


493,992


607,180


651,915

Total Deposits


$     2,229,406


$     1,933,619


$     1,963,491


$     2,073,627


$     2,070,894












 



Ending Balances At



June


March


December


September


June



2012


2012


2011


2011


2011

Loans:


(Dollars in thousands)

Real Estate:











One- to four- family


$      435,486


$   372,070


$   379,944


$   382,819


$      385,458

Commercial


760,609


624,057


585,328


546,914


521,848

Home equity/home improvement


144,147


139,339


140,966


140,945


142,328

Total real estate loans


1,340,242


1,135,466


1,106,238


1,070,678


1,049,634

Automobile


37,376


32,867


33,027


32,525


33,800

Other consumer


25,267


17,464


18,143


18,394


18,315

Total consumer loans


62,643


50,331


51,170


50,919


52,115

Commercial and industrial


197,671


70,316


70,620


44,014


44,441

Gross loans held for investment


1,600,556


1,256,113


1,228,028


1,165,611


1,146,190

Mortgage loans held for sale


925,637


734,408


834,352


691,204


420,617

Gross loans


$   2,526,193


$ 1,990,521


$ 2,062,380


$ 1,856,815


$     1,566,807

Nonaccruing loans: (1)











One- to four- family real estate


$        4,158


$      4,987


$      5,340


$      4,896


$          5,337

Commercial real estate


16,378


15,774


16,076


10,768


10,785

Home equity/home improvement


1,112


1,170


1,226


1,330


1,292

Consumer


36


29


26


-


186

Commercial and industrial


873


467


430


445


266

Total non-performing loans


22,557


22,427


23,098


17,439


17,866

Foreclosed assets


3,323


2,021


2,293


2,098


2,377

Total non-performing assets


$      25,880


$    24,448


$    25,391


$    19,537


$       20,243












Total past due loans to total loans (2)


1.11%


1.52%


2.19%


0.71%


0.87%

Total non-performing assets to total assets


0.70%


0.80%


0.80%


0.60%


0.68%

Total non-performing loans to total loans (2)


1.41%


1.79%


1.88%


1.50%


1.56%

Allowance for loan losses to non-performing loans


85.25%


80.36%


75.71%


94.82%


90.45%

Allowance for loan losses to total loans (2)


1.20%


1.43%


1.42%


1.42%


1.41%












Troubled Debt Restructured Loans:











Performing troubled debt restructurings:











One- to four- family real estate


$          498


$        374


$        136


$        280


$           226

Commercial real estate


3,087


3,087


2,860


2,860


-

Home equity/home improvement


45


106


107


-


-

Consumer


107


121


142


48


39

Commercial and industrial


20


21


26


-


-

Total


$       3,757


$     3,709


$     3,271


$     3,188


$            265

Nonaccruing troubled debt restructurings:











One- to four- family real estate


$       1,103


$     1,093


$        843


$        855


$            346

Commercial real estate


8,952


9,063


9,266


9,264


9,270

Home equity/home improvement


75


77


81


-


-

Consumer


-


13


18


-


41

Commercial and industrial


281


287


212


214


217

Total


$     10,411


$   10,533


$   10,420


$   10,333


$         9,874












Allowance for loan losses:











Balance at beginning of period


$      18,023


$    17,487


$   16,535


$    16,159


$          15,494

Provision expense


1,447


895


1,229


581


1,065

Charge-offs


(358)


(496)


(408)


(314)


(527)

Recoveries


117


137


131


109


127

Balance at end of period


$      19,229


$    18,023


$    17,487


$    16,535


$          16,159












Net Charge-Offs (Recoveries)











One- to four- family real estate


$             57


$           77


$         161


$           (4)


$                 55

Commercial real estate


-


-


-


(2)


-

Home equity/home improvement


63


-


72


9


61

Consumer


111


90


62


77


143

Commercial and industrial


10


192


(18)


125


141

Total


$           241


$         359


$         277


$        205


$               400












(1)Includes nonaccruing troubled debt restructurings.

(2)Total loans does not include loans held for sale.












 

 



Average Balances and Yields/Rates for Quarter Ended



June


March


December


September


June



2012


2012


2011


2011


2011

Loans:


(Dollars in thousands)

One- to four- family real estate


$      430,696


$    371,257


$    377,106


$    381,322


$        380,152

Loans held for sale:











Warehouse Purchase Program


662,584


637,525


705,261


395,711


282,266

ViewPoint Mortgage loans


18,511


24,163


31,484


21,213


20,894

Commercial real estate


724,775


582,710


556,909


524,516


505,290

Home equity/home improvement


145,095


140,754


140,000


141,483


141,349

Consumer


62,192


50,635


51,225


51,246


53,903

Commercial and industrial


185,580


69,519


51,926


43,806


38,523

Less: deferred fees and allowance for loan loss


(17,803)


(16,812)


(16,155)


(16,135)


(15,264)

Loans receivable


2,211,630


1,859,751


1,897,756


1,543,162


1,407,113

Securities


976,611


950,906


1,147,794


1,237,853


1,228,066

Overnight deposits


33,241


33,809


43,787


73,236


41,969

Total interest-earning assets


$   3,221,482


$ 2,844,466


$ 3,089,337


$ 2,854,251


$     2,677,148

Deposits:











Interest-bearing demand


$      505,569


$    473,687


$    485,897


$    484,926


$        468,964

Savings and money market


892,844


759,590


758,191


753,252


733,517

Time


529,928


472,097


559,169


634,754


654,852

FHLB advances and other borrowings


626,055


610,255


750,202


458,620


316,518

Total interest-bearing liabilities


$   2,554,396


$ 2,315,629


$ 2,553,459


$ 2,331,552


$     2,173,851












Total deposits


$   2,244,578


$ 1,918,594


$ 2,007,715


$ 2,066,657


$     2,053,098












Yields/Rates:











One- to four- family real estate


5.53%


5.08%


5.16%


5.29%


5.38%

Loans held for sale:











Warehouse Purchase Program


4.09%


4.16%


4.22%


4.36%


4.61%

ViewPoint Mortgage loans


4.58%


4.70%


4.17%


4.34%


5.44%

Commercial real estate


6.41%


6.22%


6.39%


6.60%


6.83%

Home equity/home improvement


5.58%


5.56%


5.67%


5.71%


5.79%

Consumer


6.43%


6.13%


6.47%


6.83%


6.56%

Commercial and industrial


5.85%


5.22%


5.92%


6.36%


6.46%

Loans receivable 


5.48%


5.23%


5.29%


5.66%


5.92%

Securities


1.97%


2.12%


2.16%


2.30%


2.32%

Overnight deposits


0.46%


0.22%


0.24%


0.24%


0.27%

Total interest-earning assets


4.36%


4.13%


4.06%


4.06%


4.18%












Deposits:











Interest-bearing demand


0.84%


0.94%


1.39%


1.78%


2.02%

Savings and money market


0.29%


0.26%


0.30%


0.46%


0.57%

Time


1.17%


1.39%


1.56%


1.69%


1.75%

FHLB advances and other borrowings


1.72%


1.74%


1.47%


2.46%


3.49%

Total interest-bearing liabilities


0.93%


1.02%


1.12%


1.46%


1.66%

Net interest spread


3.43%


3.11%


2.94%


2.60%


2.52%

Net interest margin


3.62%


3.30%


3.13%


2.87%


2.83%












 

 


Six Months Ended June 30,



2012


2011



Average Outstanding Balance


Interest Earned/Paid


Yield/ Rate


Average Outstanding Balance


Interest Earned/Paid


Yield/ Rate



(Dollars in thousands)


Interest-earning assets:













One- to four- family real estate

$      400,977


$    10,666


5.32

%

$    377,931


$   10,152


5.37

%

Loans held for sale:













Warehouse Purchase Program

650,055


13,401


4.12


277,943


6,491


4.67


ViewPoint Mortgage loans

21,337


495


4.64


22,013


604


5.49


Commercial real estate

653,742


20,672


6.32


494,089


16,764


6.79


Home equity/home improvement

142,924


3,979


5.57


140,684


4,070


5.79


Consumer

56,414


1,776


6.30


58,334


1,919


6.58


Commercial and industrial

127,549


3,621


5.68


39,085


1,294


6.62


Less: deferred fees and













allowance for loan loss

(17,308)


-


0.00


(15,241)


-


0.00


Loans receivable (1)

2,035,690


54,610


5.37


1,394,838


41,294


5.92


Agency mortgage-backed securities

338,530


4,356


2.57


471,131


6,563


2.79


Agency collateralized













mortgage obligations

533,784


4,229


1.58


667,788


6,728


2.02


Investment securities 

57,180


1,004


3.51


65,400


1,162


3.55


FHLB  and FRB stock

34,264


247


1.44


15,663


34


0.43


Interest earning deposit accounts

33,525


57


0.34


77,660


100


0.26


Total interest-earning assets

3,032,973


64,503


4.25


2,692,480


55,881


4.15















Non-interest-earning assets

168,839






141,473



















Total assets

$   3,201,812






$ 2,833,953



















Interest-bearing liabilities:













Interest-bearing demand

$      489,628


2,169


0.89


$    453,758


4,468


1.97


Savings and money market

826,217


1,123


0.27


720,999


2,030


0.56


Time

501,012


3,184


1.27


659,020


5,845


1.77


Borrowings

618,155


5,351


1.73


366,672


5,596


3.05


Total interest-bearing liabilities

2,435,012


11,827


0.97


2,200,449


17,939


1.63















Non-interest-bearing checking

264,728






191,401



















Non-interest-bearing liabilities

44,249






33,681



















Total liabilities

2,743,989






2,425,531



















Total shareholders' equity

457,823






408,422



















Total liabilities and shareholders'













equity

$   3,201,812






$ 2,833,953



















Net interest income and margin



$    52,676


3.47

%



$   37,942


2.82

%

Net interest income and margin (tax-equivalent basis)(2)



$    53,021


3.50

%



$   38,291


2.84

%

Net interest rate spread





3.28

%





2.52

%

Net earning assets

$      597,961






$    492,031






Average interest-earning assets to 













   average interest-bearing liabilities

124.56%






122.36%



















(1) Calculated net of deferred fees, loan discounts, loans in process and allowance for loan losses. Construction loans have been included in the one- to four- family and commercial real estate line items, as appropriate.



(2) In order to make pretax income and resultant yields on tax-exempt investments and loans comparable to those on taxable investments and loans, a tax-equivalent adjustment has been computed using a federal income tax rate of 35% for 2012 and 2011. Tax-exempt investments and loans, in total, had an average balance of $52.5 and $52.7 million for the six months ended June 30, 2012 and 2011, respectively.



 

At June 30, 2012


Amortized Cost


Unrealized Gains


Unrealized Losses


Fair Value



(Dollars in thousands)

Securities Available for Sale:









Agency bonds


$         2,007


$             3


$              -


$      2,010

Agency residential mortgage-backed securities


198,189


2,142


118


200,213

Agency residential collateralized mortgage obligations


260,227


1,762


529


261,460

SBA pools


3,719


113


-


3,832

     Total securities


$     464,142


$      4,020


$         647


$  467,515










Securities Held to Maturity:









Agency residential mortgage-backed securities


$     141,057


$      7,251


$              -


$  148,308

Agency commercial mortgage-backed securities


9,320


1,047


-


10,367

Agency residential collateralized mortgage obligations


229,526


4,379


226


233,679

Municipal bonds


50,465


4,879


-


55,344

     Total securities


$     430,368


$    17,556


$         226


$  447,698










 

 

VIEWPOINT FINANCIAL GROUP, INC.

SUPPLEMENTAL INFORMATION – Non-GAAP Financial Measures (unaudited)






Ending Balances At



June


March


December


September


June



2012


2012


2011


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


$      505,575


$      412,605


$       406,309


$      406,686


$      407,006

Less:   Goodwill


(29,203)


(818)


(818)


(818)


(818)

Identifiable intangible assets, net


(1,949)


(371)


(420)


(466)


(578)

Total tangible shareholders' equity at end of period

$      474,423


$      411,416


$       405,071


$      405,402


$      405,610












Shares outstanding at end of period


39,344,167


33,703,080


33,700,399


34,262,491


34,839,491












Book value per share - GAAP


$          12.85


$          12.24


$           12.06


$          11.87


$          11.68

Tangible book value per share - Non-GAAP


$          12.06


$          12.21


$           12.02


$          11.83


$          11.64












Calculating of Tangible Equity to Tangible Assets:









Total assets at end of period


$   3,692,856


$   3,041,112


$    3,180,578


$   3,235,278


$   2,963,882

Less:   Goodwill


(29,203)


(818)


(818)


(818)


(818)

Identifiable intangible assets, net


(1,949)


(371)


(420)


(466)


(578)

Total tangible assets at end of period


$   3,661,704


$   3,039,923


$    3,179,340


$   3,233,994


$   2,962,486












Equity to assets - GAAP


13.69%


13.57%


12.77%


12.57%


13.73%

Tangible equity to tangible assets - Non-GAAP


12.96%


13.53%


12.74%


12.54%


13.69%












 

SOURCE ViewPoint Financial Group, Inc.

For further information: Patti McKee, ViewPoint Financial Group, Inc., +1-972-578-5000, ext. 7223


 Print    Email    RSS                  


 
© 2014 ViewPoint Bank, N.A. All rights reserved. Member FDIC.