Viewpoint Financial 8-K ViewPoint Financial Group Reports Third Quarter and Year-to-Date 2009 Earnings

EXHIBIT 99.1

Contact:	Mark Hord	FOR IMMEDIATE RELEASE
	ViewPoint Financial Group	November 5, 2009
	972-578-5000, Ext. 7440

ViewPoint Financial Group Reports
Third Quarter and Year-to-Date 2009 Earnings

Quarterly Earnings up 143.3% from 3^rd Quarter 2008

PLANO, Texas,November 5, 2009 — ViewPoint Financial Group (NASDAQ: VPFG) (the “Company”), the holding company for ViewPoint Bank, announced unaudited financial results today for the three and nine month periods ended September 30, 2009. 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 website,http://viewpointbank.com orhttp://viewpointfinancialgroup.com. Highlights for the quarter include:

• Quarterly EPS more than doubled from this time last year:Basic and diluted earnings per share of $0.12, up $0.07 from the same period last year.

• Quarterly net income increased by 143.3%:Net income for the quarter ended September 30, 2009, was $2.9 million, an increase of $1.7 million, or 143.3%, from the quarter ended September 30, 2008.

• Purchase Program continued to fuel loan growth:$322.9 million of Purchase Program loans helped gross loans (including loans held for sale) to increase by $69.4 million, or 4.9%, from December 31, 2008.

• Deposit growth in all categories:Deposits increased by $190.0 million, or 12.3%, from December 31, 2008.

• Continued capital strength:The Company’s equity to total assets was 8.58%, and the Bank’s tier one capital ratio was 7.65%, exceeding the regulatory minimum of 5% for a well-capitalized institution.

“ViewPoint Financial Group posted its highest quarterly earnings per share ever,” said Gary Base, President and Chief Executive Officer. “Not only did we dramatically improve our earnings, we increased deposits and continued to show loan growth. These accomplishments in such a competitive banking environment and challenging economy are a testament to our front-line employees who are out there making relationships, attracting deposits, and making a difference in their communities.”

Results of Operations for the Three Months Ended September 30, 2009

Net income for the three months ended September 30, 2009, was $2.9 million, an increase of $1.7 million, or 143.3%, from $1.2 million for the three months ended September 30, 2008. This increase in net income was driven by higher gain on sale of loans and net interest income, as well as operating expense reductions in advertising and outside professional services expense. Our basic and diluted earnings per share for the three months ended September 30, 2009, increased by $0.07 to $0.12.

Interest income increased by $969,000, or 3.8%, from $25.4 million for the three months ended September 30, 2008, to $26.4 million for the three months ended September 30, 2009.

	Three Months Ended
	September 30,				Dollar			Percent
	2009		2008		Change			Change
	(Dollars in Thousands)
Interest and dividend income
Loans, including fees	$	21,031	$	17,602	$	3,429			19.5	%
Securities		5,039		7,601		(2,562	)		-33.7	%
Interest-bearing deposits in other financial institutions		315		176		139			79.0	%
Federal Home Loan Bank stock		7		44		(37	)		-84.1	%
	$	26,392	$	25,423	$	969			3.8	%

This increase was primarily due to an increase in interest income on loans as the average balance of loans (including loans held for sale) increased by $237.9 million, or 20.4%, from the three months ended September 30, 2008. This increase was driven by higher average balances in residential real estate (primarily a result of our Purchase Program that was introduced in July 2008) and commercial real estate loans.

Interest expense increased by $521,000, or 4.5%, from $11.7 million for the three months ended September 30, 2008, to $12.2 million for the three months ended September 30, 2009.

	Three Months Ended
	September 30,				Dollar			Percent
	2009		2008		Change			Change
	(Dollars in Thousands)
Interest expense
Deposits	$	8,545	$	8,647	$	(102	)		-1.2	%
Federal Home Loan Bank advances		3,421		2,900		521			18.0	%
Repurchase agreement		206		104		102			98.1	%
	$	12,172	$	11,651	$	521			4.5	%

This increase was primarily caused by increased interest expense on Federal Home Loan Bank advances. The average balance of borrowings increased by $36.8 million, or 11.6%, from the three months ended September 30, 2008, and the average rate paid on borrowings increased by 31 basis points. While volume increased in all of our deposit categories, lower rates paid on our savings, money market, and time accounts contributed to lower interest expense on deposit accounts.

Noninterest income increased by $1.7 million, or 21.9%, from $8.0 million for the three months ended September 30, 2008, to $9.7 million for the three months ended September 30, 2009.

	Three Months Ended
	September 30,						Dollar			Percent
	2009			2008			Change			Change
	(Dollars in Thousands)
Noninterest income			��
Service charges and fees	$	4,798		$	5,034		$	(236	)		-4.7	%
Brokerage fees		90			144			(54	)		-37.5	%
Net gain on sale of loans		3,797			2,352			1,445			61.4	%
Loan servicing fees		82			69			13			18.8	%
Bank-owned life insurance income		103			301			(198	)		-65.8	%
Valuation adjustment on mortgage servicing rights		109			—			109			100.0	%
Gain (loss) on sale of foreclosed assets		495			(8	)		503			6287.5	%
Gain (loss) on disposition of assets		(96	)		(1	)		(95	)		9500.0	%
Other		353			90			263			292.2	%
	$	9,731		$	7,981		$	1,750			21.9	%

Net gain on sale of loans increased as our mortgage banking subsidiary, ViewPoint Bankers Mortgage, Inc. (VPBM), sold $162.1 million in loans to outside investors during the three months ended September 30, 2009, compared to $67.6 million for the same period in 2008. The increase in sales can be attributed to a higher volume of one- to four-family loan originations partially due to increased refinance volume resulting from lower market interest rates. Gain on sale of foreclosed assets increased primarily due to a $440,000 recovery recognized in September 2009 on an REO property; this recovery offset losses recognized on this property throughout 2008 and 2009. Fees of $563,000 generated by our Purchase Program partially offset the decrease in service charges and fees, which was primarily attributable to a decrease in non-sufficient funds fees and a decline in debit card income as we have seen a trend of lower volume in these types of transactions.

Noninterest expense decreased by $136,000, or 0.74%, from $18.2 million for the three months ended September 30, 2008, to $18.1 million for the three months ended September 30, 2009.

	Three Months Ended
	September 30,				Dollar			Percent
	2009		2008		Change			Change
	(Dollars in Thousands)
Noninterest expense
Salaries and employee benefits	$	11,451	$	11,427	$	24			0.2	%
Advertising		286		529		(243	)		-45.9	%
Occupancy and equipment		1,474		1,491		(17	)		-1.1	%
Outside professional services		460		832		(372	)		-44.7	%
Regulatory assessments		844		317		527			166.2	%
Data processing		1,085		1,040		45			4.3	%
Office operations		1,456		1,488		(32	)		-2.2	%
Deposit processing charges		203		245		(42	)		-17.1	%
Lending and collection		326		344		(18	)		-5.2	%
Other		485		493		(8	)		-1.6	%
	$	18,070	$	18,206	$	(136	)		-0.7	%

The decrease in noninterest expense was primarily attributable to a decline in outside professional services expense, which was lower for the three months ended September 30, 2009, due to a decrease in consulting expense. In 2008, we employed consulting firms to streamline our processes and assist in meeting our staffing needs as we expanded our community and mortgage banking network and introduced our Purchase Program. We did not incur similar expenses during the same time period in 2009. Also, during the three months ended September 30, 2008, we recorded a litigation liability related to Visa, Inc.’s settlement with Discover Financial Services, which was covered litigation under Visa’s retrospective responsibility plan—we had no similar transactions during the same time period in 2009. Advertising expense decreased as we shifted our focus to emphasize community marketing efforts rather than mass branding campaigns. The decline in noninterest expense was partially offset by an increase in regulatory assessments expense, as FDIC deposit insurance assessment rates have increased along with an increase in assessable deposits.

The slight increase in salaries and employee benefits was primarily due to organic growth, as we had $300,000 of increased salary expense in 2009 related to five new community bank offices opened in 2008 and 2009 and the addition of our Purchase Program division in July 2008. Also, salaries increased by $230,000 due to a higher number of salaried VPBM employees, as the headcount of employees paid on a salaried basis increased from 44 employees at August 31, 2008, to 60 employees at August 31, 2009. These increases were partially offset by salary expense savings due to the closure of nine in-store banking centers in 2009.

Results of Operations for the Nine Months Ended September 30, 2009

Non-GAAP net income for the nine months ended September 30, 2009, was $8.5 million, an increase of $4.3 million, or 100.0%, from $4.2 million for the nine months ended September 30, 2008. This increase was driven by higher gain on sale of loans and net interest income. Our non-GAAP basic and diluted earnings per share for the nine months ended September 30, 2009, increased by $0.17 to $0.35. A reconciliation of these non-GAAP income items to GAAP net income can be found in the tables accompanying this press release. Net income for the nine months ended September 30, 2009, was $306,000, a decrease of $3.8 million, or 92.5%, from net income of $4.1 million for the nine months ended September 30, 2008. This decline in net income was primarily due to an $8.1 million (net of tax, using a tax rate of 34%) impairment charge on the Company’s collateralized debt obligations. We no longer have any collateralized debt obligations on our books. Net income before this impairment charge was $8.4 million, an increase of $4.3 million, or 105.2%, from the nine months ended September 30, 2008.

Interest income increased by $10.8 million, or 15.3%, from $70.8 million for the nine months ended September 30, 2008, to $81.6 million for the nine months ended September 30, 2009.

	Nine Months Ended
	September 30,				Dollar			Percent
	2009		2008		Change			Change
	(Dollars in Thousands)
Interest and dividend income
Loans, including fees	$	62,993	$	47,208	$	15,785			33.4	%
Securities		18,066		22,360		(4,294	)		-19.2	%
Interest-bearing deposits in other financial institutions		543		967		(424	)		-43.8	%
Federal Home Loan Bank stock		10		225		(215	)		-95.6	%
	$	81,612	$	70,760	$	10,852			15.3	%

This increase was primarily due to an increase in interest income on loans as the average balance of loans (including loans held for sale) increased by $380.0 million, or 36.1%, from the nine months ended September 30, 2008. This increase was driven by higher average balances in residential real estate (primarily a result of our Purchase Program) and commercial real estate loans.

Interest expense increased by $4.5 million, or 13.7%, from $33.2 million for the nine months ended September 30, 2008, to $37.7 million for the nine months ended September 30, 2009.

	Nine Months Ended
	September 30,				Dollar			Percent
	2009		2008		Change			Change
	(Dollars in Thousands)
Interest expense
Deposits	$	26,404	$	26,637	$	(233	)		-0.87	%
Federal Home Loan Bank advances		10,782		6,341		4,441			70.0	%
Federal Reserve Bank borrowings		29		—		29			100.0	%
Repurchase agreement		502		196		306			156.1	%
	$	37,717	$	33,174	$	4,543			13.7	%

This increase was primarily caused by increased interest expense on Federal Home Loan Bank advances. The average balance of borrowings increased by $162.6 million, or 75.0%, from the nine months ended September 30, 2008, which was partially offset by a four basis point decrease in the average rate paid for borrowings from the nine months ended September 30, 2008. While volume increased in all of our deposit categories, lower rates paid on our savings, money market, and time accounts contributed to lower interest expense on deposit accounts.

Noninterest income decreased by $6.2 million, or 25.8%, from $24.2 million for the nine months ended September 30, 2008, to $18.0 million for the nine months ended September 30, 2009.

	Nine Months Ended
	September 30,						Dollar			Percent
	2009			2008			Change			Change
	(Dollars in Thousands)
Noninterest income
Service charges and fees	$	14,063		$	14,918		$	(855	)		-5.7	%
Brokerage fees		229			364			(135	)		-37.1	%
Net gain on sale of loans		12,834			6,520			6,314			96.8	%
Loan servicing fees		183			196			(13	)		-6.6	%
Bank-owned life insurance income		444			849			(405	)		-47.7	%
Gain on redemption of Visa, Inc. shares		—			771			(771	)		-100.0	%
Valuation adjustment on mortgage servicing rights		(102	)		—			(102	)		-100.0	%
Impairment of collateralized debt obligation (all credit)		(12,246	)		—			(12,246	)		-100.0	%
Gain on sale of available for sale securities		2,377			—			2,377			100.0	%
Gain (loss) on sale of foreclosed assets		219			(33	)		252			763.6	%
Gain (loss) on disposition of assets		(1,038	)		11			(1,049	)		-9536.4	%
Other		1,005			622			383			61.6	%
	$	17,968		$	24,218		$	(6,250	)		-25.8	%

Net gain on sale of loans increased as VPBM sold $518.3 million in loans to outside investors during the nine months ended September 30, 2009, compared to $193.0 million for the same period in 2008. The increase in sales can be attributed to a higher volume of one- to four-family loan originations partially due to increased refinance volume resulting from lower market interest rates. Non-interest income for the nine months ended September 30, 2009, included non-recurring losses such as a $12.2 million impairment on the remaining collateralized debt obligations, which were impaired to their fair value and sold in June 2009, and $993,000 in lease termination fees and leasehold improvement write-offs for in-store banking centers closed during the nine months ended September 30, 2009, which are reported as losses on disposition of assets.

Fees of $1.2 million generated by our Purchase Program partially offset the decrease in service charges and fees, which was primarily attributable to a decrease in non-sufficient funds fees and a decline in debit card income as we have seen a trend of lower volume in these types of transactions. Excluding the impairment related to collateralized debt obligations and the gain on sale of securities, non-interest income would have been $24.5 million, a 1.1% increase over the same time period in 2008.

Noninterest expense increased by $5.6 million, or 11.0%, from $51.0 million for the nine months ended September 30, 2008, to $56.6 million for the nine months ended September 30, 2009.

	Nine Months Ended
	September 30,				Dollar			Percent
	2009		2008		Change			Change
	(Dollars in Thousands)
Noninterest expense
Salaries and employee benefits	$	35,655	$	31,786	$	3,869			12.2	%
Advertising		975		1,899		(924	)		-48.7	%
Occupancy and equipment		4,538		4,113		425			10.3	%
Outside professional services		1,425		1,588		(163	)		-10.3	%
Regulatory assessments		3,250		916		2,334			254.8	%
Data processing		3,127		3,110		17			0.5	%
Office operations		4,424		4,497		(73	)		-1.6	%
Deposit processing charges		666		755		(89	)		-11.8	%
Lending and collection		1,001		941		60			6.4	%
Other		1,579		1,438		141			9.8	%
	$	56,640	$	51,043	$	5,597			11.0	%

This increase in noninterest expense was primarily due to organic growth as we have opened multiple new locations over the past year and paid additional mortgage loan production incentives due to higher mortgage originations. The increase in salary expense due to increased mortgage commissions is more than offset by a $6.3 million increase in the net gain on sale of loans, which is reported in noninterest income.

Over the past year, the Company opened five new community bank offices in Northeast Tarrant County, Oak Cliff, Grapevine, West Frisco, and Wylie and added a new Purchase Program division in July 2008, resulting in additional salary expense. This increase was partially offset by salary expense savings due to the closure of nine in-store banking centers during the nine months ended September 30, 2009. Since August 2008, VPBM has increased its salaried headcount by 16 employees, resulting in increased salary expense.

Advertising expense decreased as we shifted our focus to emphasize community marketing efforts rather than mass branding campaigns. Regulatory assessments expense increased due to increased regulatory fees, which included a $1.1 million FDIC special assessment booked as expense in the second quarter of 2009. This special assessment, adopted in May 2009, assessed FDIC-insured banks five basis points on a base of total assets less Tier One capital.

Financial Condition as of September 30, 2009

Total assets increased by $136.4 million, or 6.2%, to $2.35 billion at September 30, 2009, from $2.21 billion at December 31, 2008. The rise in total assets was primarily due to an increase in gross loans (including loans held for sale) and securities.

	September 30,		December 31,		Dollar			Percent
	2009		2008		Change			Change
	(Dollars in Thousands)
Mortgage loans:
One- to four-family	$	453,892	$	498,961	$	(45,069	)		-9.0	%
Commercial		442,626		436,483		6,143			1.4	%
One- to four-family construction		3,860		503		3,357			667.4	%
Commercial construction		757		—		757			100.0	%
Mortgage loans held for sale		350,116		159,884		190,232			119.0	%
Home equity		98,917		101,021		(2,104	)		-2.1	%
Total mortgage loans		1,350,168		1,196,852		153,316			12.8	%
Automobile loans		76,780		111,870		(35,090	)		-31.4	%
Other consumer loans		27,727		29,299		(1,572	)		-5.4	%
Commercial non-mortgage loans		24,601		18,574		6,027			32.4	%
Warehouse lines of credit		—		53,271		(53,271	)		-100.0	%
Total non-mortgage loans		129,108		213,014		(83,906	)		-39.4	%
Gross loans	$	1,479,276	$	1,409,866	$	69,410			4.9	%

At September 30, 2009, mortgage loans held for sale consisted of $27.2 million of loans originated for sale by VPBM and $322.9 million of Purchase Program loans purchased for sale under our standard loan participation agreement, which enables our mortgage banking company clients to close one- to four-family real estate loans in their own name and temporarily finance their inventory of these closed loans until the loans are sold to investors approved by the Company. Our Purchase Program currently serves 20 clients and disbursed $1.42 billion in loans during the third quarter of 2009. The increase in mortgage loans held for sale over the last nine months was attributable to a $185.4 million increase in the volume of Purchase Program loans held under our standard loan participation agreement and VPBM’s increased real estate production.

We saw increases in both our commercial real estate and commercial non-mortgage portfolios, while warehouse lines of credit decreased by $53.3 million. We have decided to discontinue warehouse lines of credit and focus on our Purchase Program due to the added benefits associated with direct relationship lending. Consumer loans decreased as we have continued to reduce our emphasis on consumer lending and are focused on originating residential and commercial loans. Nevertheless, we remain committed to meeting all of the banking needs of our customers, which includes offering them competitive consumer lending products.

Our non-performing loans to total loans ratio at September 30, 2009, was 1.30% compared to 0.38% at December 31, 2008. Non-performing loans increased by $9.9 million, from $4.7 million at December 31, 2008, to $14.6 million at September 30, 2009. The increase in non-performing loans was primarily due to three commercial real estate loans totaling $7.2 million that moved to non-performing during the nine months ended September 30, 2009. We have set aside a total of $955,000 in specific valuation allowances for these three loans.

The increase in our securities portfolio of $69.9 million was primarily caused by $458.6 million of securities purchased and was partially offset by maturities and paydowns totaling $315.0 million and sales proceeds totaling $73.8 million. The sale of 22 agency residential collateralized mortgage obligations and two agency residential mortgage-backed securities, with a cost basis of $71.2 million, resulted in a $1.6 million after-tax increase to earnings. We no longer have any collateralized debt obligations in our securities portfolio.

Total deposits increased by $190.0 million, or 12.3%, to $1.74 billion at September 30, 2009, from $1.55 billion at December 31, 2008.

	September 30,		December 31,		Dollar		Percent
	2009		2008		Change		Change
	(Dollars in Thousands)
Non-interest-bearing demand	$	184,869	$	172,395	$	12,474		7.2	%
Interest-bearing demand		207,223		98,884		108,339		109.6	%
Savings		144,580		144,530		50		0.0	%
Money Market		533,755		482,525		51,230		10.6	%
IRA savings		8,749		8,188		561		6.9	%
Time		658,905		641,568		17,337		2.7	%
Total deposits	$	1,738,081	$	1,548,090	$	189,991		12.3	%

We saw increases in all deposit categories, with the largest being a $108.3 million, or 109.6%, increase in interest-bearing demand accounts. This was primarily attributable to our Absolute Checking product, which currently provides a 4.0% annual percentage yield on account balances up to $50,000. This product encourages relationship accounts with required electronic transactions. Money market deposits increased due to a $50.8 million, or 11.8%, increase in consumer money market accounts. Additionally, time accounts increased primarily due to our participation in the CDARS^® network. Non-interest-bearing demand accounts include $27.8 million of growth in our Purchase Program checking account, which is a non-interest-bearing demand account opened by our mortgage banking company clients who participate in the Purchase Program.

Federal Home Loan Bank advances decreased due to monthly principal paydowns. During the nine months ended September 30, 2009, the Company used deposit growth to fund loans more often than utilizing borrowings as a funding source.

Total shareholders’ equity increased by $7.4 million, or 3.8%, from $194.1 million at December 31, 2008, to $201.5 million at September 30, 2009.

	September 30,			December 31,			Dollar		Percent
	2009			2008			Change		Change
	(Dollars in Thousands)
Common stock	$	262		$	262		$	—		0.0	%
Additional paid-in capital		117,491			115,963			1,528		1.3	%
Retained Earnings		109,547			108,332			1,215		1.1	%
Accumulated other comprehensive income (loss)		2,354			(1,613	)		3,967		245.9	%
Unearned ESOP shares		(6,393	)		(7,097	)		704		9.9	%
Treasury stock		(21,708	)		(21,708	)		—		0.0	%
Total shareholders’ equity	$	201,553		$	194,139		$	7,414		3.8	%

This increase was primarily caused by the change in unrealized gains and losses on securities available for sale. The payment of dividends totaling $0.18 per share so far this year resulted in a $1.9 million reduction to shareholders’ equity.

About ViewPoint Financial Group

ViewPoint Financial Group is the holding company for ViewPoint Bank. ViewPoint Bank operates 23 community bank offices and 16 loan production offices. 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, competition, changes in management’s business strategies and other factors set forth under Risk Factors in our Form 10-K, that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. The Company wishes to advise readers that 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 which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

VIEWPOINT FINANCIAL GROUP AND SUBSIDIARY
Condensed Consolidated Statements of Condition
(In thousands)

	September 30,		December 31,
	2009		2008
	(Unaudited)
ASSETS
Total cash and cash equivalents	$	32,090	$	32,513
Securities available for sale, at fair value		471,178		483,016
Securities held to maturity		254,103		172,343
Mortgage loans held for sale		350,116		159,884
Loans, net of allowance of $10,955- September 30, 2009, $9,068-December 31, 2008		1,117,012		1,239,708
Federal Home Loan Bank stock		15,469		18,069
Bank-owned life insurance		28,022		27,578
Premises and equipment, net		50,455		45,937
Accrued interest receivable and other assets		31,382		34,367
Total assets	$	2,349,827	$	2,213,415
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits
Non-interest-bearing demand		184,869		172,395
Interest-bearing demand		207,223		98,884
Savings and money market		687,084		635,243
Time		658,905		641,568
Total deposits		1,738,081		1,548,090
Federal Home Loan Bank advances		344,735		410,841
Repurchase agreement		25,000		25,000
Accrued interest payable and other liabilities		40,458		35,345
Total liabilities		2,148,274		2,019,276
Total shareholders’ equity		201,553		194,139
Total liabilities and shareholders’ equity	$	2,349,827	$	2,213,415

VIEWPOINT FINANCIAL GROUP AND SUBSIDIARY
Condensed Consolidated Statements of Income
(In thousands except per share data)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2009		2008		2009		2008
	(unaudited)
Interest and dividend income
Loans, including fees	$	21,031	$	17,602	$	62,993	$	47,208
Securities		5,039		7,601		18,066		22,360
Interest-bearing deposits in other financial institutions		315		176		543		967
Federal Home Loan Bank stock		7		44		10		225
		26,392		25,423		81,612		70,760
Interest expense
Deposits		8,545		8,647		26,404		26,637
Federal Home Loan Bank advances		3,421		2,900		10,782		6,341
Other borrowings		206		104		531		196
		12,172		11,651		37,717		33,174
Net interest income		14,220		13,772		43,895		37,586
Provision for loan losses		1,775		1,867		4,711		4,505
Net interest income after provision for loan losses		12,445		11,905		39,184		33,081
Noninterest income		9,731		7,981		17,968		24,218
Noninterest expense		18,070		18,206		56,640		51,043
Income before income tax expense		4,106		1,680		512		6,256
Income tax expense		1,213		491		206		2,168
Net income	$	2,893	$	1,189	$	306	$	4,088
Basic and diluted earnings per share	$	0.12	$	0.05	$	0.01	$	0.17

VIEWPOINT FINANCIAL GROUP AND SUBSIDIARY
Reconciliation of Non-GAAP to GAAP Net Income
(In thousands except per share data)

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2009			2008		2009			2008
	(unaudited)
Net income	$	2,893		$	1,189	$	306		$	4,088
Share-based compensation expense, net of tax		316			307		915			853
Impairment of collateralized debt obligations (all credit), net of tax		—			—		8,082			—
Gain on sale of available for sale securities, net of tax		—			—		(1,569	)		—
Valuation adjustment on mortgage servicing rights, net of tax		(72	)		—		67			—
Loss relating to closure of in-store banking centers, net of tax		59			—		655			—
Visa litigation liability, net of tax		—			84		—			84
Reversal of Visa litigation liability, net of tax		—			—		—			(294	)
Gain on redemption of Class B Visa, Inc. shares, net of tax		—			—		—			(504	)
Non-GAAP net income	$	3,196		$	1,580	$	8,456		$	4,227
Basic and diluted non-GAAP earnings per share	$	0.13		$	0.07	$	0.35		$	0.18

VIEWPOINT FINANCIAL GROUP AND SUBSIDIARY
Selected Financial Data
(Dollar amounts in thousands, except per share data)
(unaudited)

	Three Months Ended															Nine Months Ended
	Sept			June			Mar			Dec			Sept			Sept			Sept
	2009			2009			2009			2008			2008			2009			2008
Share Data for Earnings per Share Calculation:
Weighted average common shares outstanding		24,929,157			24,929,157			24,929,157			24,929,157			24,958,368			24,929,157			25,128,775
Less: average unallocated ESOP shares		(649,537	)		(672,886	)		(696,319	)		(722,090	)		(749,177	)		(672,743	)		(776,000	)
Less: average unvested restricted shares		(260,118	)		(307,219	)		(344,161	)		(346,161	)		(346,161	)		(303,525	)		(389,718	)
Average shares		24,019,502			23,949,052			23,888,677			23,860,906			23,863,030			23,952,889			23,963,057
Diluted average shares		24,019,502			23,949,052			23,888,677			23,860,906			23,863,030			23,952,889			23,963,057
Net income (loss)	$	2,893		$	(3,831	)	$	1,244		$	(7,403	)	$	1,189		$	306		$	4,088
EPS	$	0.12		$	(0.16	)	$	0.05		$	(0.31	)	$	0.05		$	0.01		$	0.17
Non-GAAP EPS	$	0.13		$	0.13		$	0.09		$	0.08		$	0.07		$	0.35		$	0.18
Share data at period-end:
Total shares issued		26,208,958			26,208,958			26,208,958			26,208,958			26,208,958			26,208,958			26,208,958
Less: Treasury stock		(1,279,801	)		(1,279,801	)		(1,279,801	)		(1,279,801	)		(1,279,801	)		(1,279,801	)		(1,279,801	)
Total shares outstanding		24,929,157			24,929,157			24,929,157			24,929,157			24,929,157			24,929,157			24,929,157
Location Data:
Number of full-service community bank offices		21			20			18			18			17			21			17
Number of in-store banking centers		2			3			4			12			12			2			12
Total community bank offices		23			23			22			30			29			23			29
Number of loan production offices		16			15			14			15			20			16			20
Performance Ratios1:
Return on assets		0.51	%		-0.68	%		0.22	%		-1.41	%		0.24	%		0.02	%		0.30	%
Return on equity		5.78	%		-7.86	%		2.55	%		-15.34	%		2.41	%		0.21	%		2.69	%
Noninterest income to operating revenues		26.94	%		2.86	%		21.29	%		-26.12	%		23.89	%		18.04	%		25.50	%
Operating expenses to average total assets		3.16	%		3.54	%		3.33	%		3.49	%		3.74	%		3.34	%		3.71	%
Efficiency ratio2		75.45	%		71.76	%		83.31	%		83.47	%		83.69	%		76.43	%		82.59	%
Capital Ratios:
Equity to total assets		8.58	%		8.65	%		8.76	%		8.77	%		10.03	%		8.58	%		10.03	%
Risk-based capital to risk-weighted assets3		14.33	%		13.83	%		10.97	%		11.17	%		13.68	%		14.33	%		13.68	%
Tier 1 capital to risk-weighted assets3		13.60	%		13.14	%		10.40	%		10.58	%		13.05	%		13.60	%		13.05	%

1	With the exception of end of period ratios, all ratios are based on average monthly balances and are annualized where appropriate.
2	Calculated by dividing total noninterest expense by net interest income plus noninterest income, excluding impairment on securities.
3	Calculated at the ViewPoint Bank level, which is subject to capital adequacy requirements by the Office of Thrift Supervision.

VIEWPOINT FINANCIAL GROUP AND SUBSIDIARY
Selected Financial Data, continued
(Dollar amounts in thousands, except per share data)
(unaudited)

	Three Months Ended															Nine Months Ended
	Sept			June			Mar			Dec			Sept			Sept			Sept
	2009			2009			2009			2008			2008			2009			2008
Asset Quality Data and Ratios:
Non-performing loans	$	14,640		$	7,337		$	6,029		$	4,745		$	4,706		$	14,640		$	4,706
Non-performing assets to total assets		0.67	%		0.40	%		0.34	%		0.29	%		0.27	%		0.67	%		0.27	%
Non-performing loans to total loans4		1.30	%		0.62	%		0.49	%		0.38	%		0.39	%		1.30	%		0.39	%
Allowance for loan losses to non-performing loans		74.83	%		136.24	%		157.54	%		191.11	%		180.92	%		74.83	%		180.92	%
Allowance for loan losses to total loans4		0.97	%		0.84	%		0.76	%		0.73	%		0.70	%		0.97	%		0.70	%
Average Balances:
Loans5	$	1,406,372		$	1,429,924		$	1,459,716		$	1,293,372		$	1,168,465		$	1,432,004		$	1,052,031
Securities		619,359			616,683			659,476			630,598			645,433			631,839			626,232
Overnight deposits		132,937			74,415			27,994			54,483			29,270			78,449			47,061
Total interest-earning assets		2,158,668			2,121,022			2,147,186			1,978,453			1,843,168			2,142,292			1,725,324
Deposits:
Interest-bearing demand	$	180,997		$	137,302		$	104,381		$	95,148		$	83,742		$	140,893		$	74,216
Savings and money market		674,768			667,376			644,216			621,349			615,787			662,120			594,464
Time		659,951			672,779			662,419			567,040			503,943			665,050			509,980
FHLB advances and other borrowings		354,095			365,950			418,152			406,501			317,296			379,399			216,757
Total interest-bearing liabilities	$	1,869,811		$	1,843,407		$	1,829,168		$	1,690,038		$	1,520,768		$	1,847,462		$	1,395,417
Yields:
Loans		5.98	%		5.94	%		5.68	%		5.93	%		6.03	%		5.87	%		5.98	%
Securities		3.26	%		4.09	%		4.08	%		4.59	%		4.74	%		3.81	%		4.81	%
Overnight deposits		0.95	%		0.91	%		0.84	%		1.67	%		2.41	%		0.92	%		2.74	%
Total interest-earning assets		4.89	%		5.22	%		5.13	%		5.39	%		5.52	%		5.08	%		5.47	%
Deposits:
Interest-bearing demand		2.16	%		1.86	%		1.56	%		1.37	%		1.23	%		1.91	%		0.98	%
Savings and money market		1.73	%		1.81	%		2.10	%		2.43	%		2.44	%		1.87	%		2.39	%
Time		2.82	%		3.01	%		3.24	%		3.38	%		3.68	%		3.02	%		4.03	%
FHLB advances and other borrowings		4.10	%		4.13	%		3.74	%		4.04	%		3.79	%		3.98	%		4.02	%
Total interest-bearing liabilities		2.60	%		2.71	%		2.85	%		3.08	%		3.06	%		2.72	%		3.17	%
Net interest spread		2.29	%		2.51	%		2.28	%		2.31	%		2.46	%		2.36	%		2.30	%
Net interest margin		2.63	%		2.87	%		2.70	%		2.76	%		2.99	%		2.73	%		2.90	%

4	Total loans does not include loans held for sale.
5	Includes loans held for sale