Exhibit 99.1
| | |
| Contact: Patti McKee | | FOR IMMEDIATE RELESE |
ViewPoint Financial Group, Inc. | | July 26, 2012 |
972-578-5000, Ext. 7223 | | |
VIEWPOINT FINANCIAL GROUP, INC. REPORTS SECOND QUARTER 2012 EARNINGS
Successful Highlands Bancshares, Inc. (“Highlands”) Acquisition, Net Interest Margin Expansion and Strong Loan Growth
PLANO, Texas, July 26, 2012— 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 andhttp://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.
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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.
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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.
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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.
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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 | |
| | | | | | | | |
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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 | |
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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-GAAP1 | | | 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 ratio2 | | | 22.55 | % | | | 25.22 | % | | | 24.40 | % | | | 21.20 | % | | | 24.93 | % |
Total risk-based capital ratio2 | | | 23.47 | % | | | 26.33 | % | | | 25.46 | % | | | 21.93 | % | | | 25.79 | % |
Tier 1 leverage ratio2 | | | 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-GAAP1 | | | 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 | |
| | | (Dollars in thousands) | |
Deposits: | | | | | | | | | | | | | | | | | | | | |
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 | |
| | | | | | | | | | | | | | | | | | | | |
Page 7 of 11
| | | | | | | | | | | | | | | | | | | | |
| | | Ending Balances At | |
| | | June | | | March | | | December | | | September | | | June | |
| | | 2012 | | | 2012 | | | 2011 | | | 2011 | | | 2011 | |
| | | (Dollars in thousands) | |
Loans: | | | | | | | | | | | | | | | | | | | | |
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 loans2 | | | 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 loans2 | | | 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 loans2 | | | 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. |
Page 8 of 11
| | | | | | | | | | | | | | | | | | | | |
| | | Average Balances and Yields/Rates for Quarter Ended | |
| | | June | | | March | | | December | | | September | | | June | |
| | | 2012 | | | 2012 | | | 2011 | | | 2011 | | | 2011 | |
| | | (Dollars in thousands) | |
Loans: | | | | | | | | | | | | | | | | | | | | |
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 | % |
Page 9 of 11
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended June 30, | |
| | | 2012 | | | 2011 | |
| | | Average | | | | | | | | | Average | | | | | | | |
| | | Outstanding | | | Interest | | | Yield/ | | | Outstanding | | | Interest | | | Yield/ | |
| | | Balance | | | Earned/Paid | | | Rate | | | Balance | | | Earned/Paid | | | 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 receivable1 | | | 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. |
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| | | | | | | | | | | | | | | | |
| | | Amortized | | | Unrealized | | | Unrealized | | | | |
At June 30, 2012 | | Cost | | | Gains | | | 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 | % |
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