PLANO, Texas, Feb. 4, 2014 /PRNewswire/ -- ViewPoint Financial
Group, Inc. (NASDAQ: VPFG) (the "Company"), the holding company for
ViewPoint Bank, N.A. (the "Bank"), today announced net income of
$7.2 million for the quarter ended
December 31, 2013, a decrease of
$968,000, or 11.8%, from the quarter
ended September 30, 2013.
Compared to the fourth quarter of 2012, net income decreased by
$3.1 million, or 30.1%. Net income
for the year ended December 31, 2013,
was $31.7 million, a $3.6 million decrease, or 10.1%, from net income
of $35.2 million for the year ended
December 31, 2012. Basic and
diluted earnings per share for the quarter ended December 31, 2013, was $0.19. Basic earnings per share was down
$0.03 from the linked quarter and
down $0.09 from the quarter ended
December 31, 2012, reflecting merger
costs of $663,000 and severance costs
of $210,000, which accounted for a
$0.02 per share decline in earnings
per share.
In November 2013, the Company
announced that it had entered into a definitive agreement under
which LegacyTexas Group, Inc. will merge into ViewPoint and,
immediately thereafter, ViewPoint's bank subsidiary, ViewPoint
Bank, N.A., will merge into LegacyTexas Group's subsidiary bank,
LegacyTexas Bank. The merger will result in one of the largest
independent banks in the state of Texas, with 51 branches and pro forma assets
of over $5 billion. President and CEO
Kevin Hanigan, said, "This
combination allows ViewPoint to accomplish many of our strategic
objectives, including: gaining greater scale in the Dallas-Fort
Worth Metroplex; accelerating ViewPoint's transition to a
full-service, commercial-oriented community bank; leveraging our
excess capital in a financially attractive transaction, and
deepening our management and board depth and experience."
Full Year 2013 Performance Highlights
- Merger with LegacyTexas Group announced November 2013; the merger will result in one of
the largest independent banks in the state of Texas, with 51 branches and pro forma assets
of over $5 billion
- Continued execution of commercial banking strategy with
commercial loan portfolio growing 39.3% to a total of $1.6 billion
- The Company formed a new energy lending group in
May 2013 with total loans outstanding
of $166.5 million at December 31, 2013
- Net interest margin expanded to 3.71% for the year compared
to 3.61% for 2012
- Non-performing assets of $22.6
million, or 0.64% of total assets, at December 31, 2013, represents lowest level in
nine quarters
- The Company announced today its second consecutive quarterly
cash dividend of $0.12 per share, up
20% from the $0.10 per share declared
for the four prior quarterly dividend periods
Fourth Quarter 2013 Performance Highlights
- Linked quarter commercial loan growth of $119.1 million or 8.3%; loans held for
investment, excluding Warehouse Purchase Program loans, up
$116.2 million, or 6.0%
- Net interest margin increased 20 basis points for the linked
quarter to 3.83%
- Net charge-offs declined to $127,000—the lowest level since becoming a
publicly traded company in 2006
"I'm very pleased with what we accomplished last year—and last
quarter," said President and CEO Kevin
Hanigan. "We recorded tremendous loan growth, including
strong results from our new Energy Finance group. Our non-interest
bearing deposits continue to grow, our asset quality is the best
it's been in more than two years, and it would be an understatement
to say we're thrilled about our upcoming merger with LegacyTexas
Bank. I'm looking forward to an exciting 2014."
Financial Highlights
|
At or For the
Quarters Ended
|
|
December
|
|
September
|
|
December
|
(unaudited)
|
2013
|
|
2013
|
|
2012
|
|
(Dollars in
thousands, except per share amounts)
|
Net interest
income
|
$
|
30,069
|
|
|
$
|
29,188
|
|
|
$
|
31,528
|
|
Provision (benefit)
for loan losses
|
616
|
|
|
(158)
|
|
|
(17)
|
|
Non-interest
income
|
5,005
|
|
|
5,226
|
|
|
6,494
|
|
Non-interest
expense
|
24,128
|
|
|
22,173
|
|
|
21,705
|
|
Income tax
expense
|
3,086
|
|
|
4,187
|
|
|
5,973
|
|
Net income
|
$
|
7,244
|
|
|
$
|
8,212
|
|
|
$
|
10,361
|
|
|
|
|
|
|
|
Basic earnings per
common share
|
$
|
0.19
|
|
|
$
|
0.22
|
|
|
$
|
0.28
|
|
Weighted average
common shares outstanding - basic
|
37,686,866
|
|
|
37,594,701
|
|
|
37,460,539
|
|
Estimated Tier 1
risk-based capital ratio1
|
18.17
|
%
|
|
19.17
|
%
|
|
21.67
|
%
|
Tangible common
equity to tangible assets - Non-GAAP 2
|
14.70
|
%
|
|
15.18
|
%
|
|
13.48
|
%
|
|
|
1
|
Calculated at the
ViewPoint Financial Group, Inc. level, which is subject to the
capital adequacy requirements of the Federal Reserve. The
decline in our December 2013 and September 2013 ratio is primarily
the result of a risk-weighting change from 50% to 100% on our
Warehouse Purchase Program loans.
|
2
|
See the section
labeled "Supplemental Information- Non-GAAP Financial Measures" at
the end of this document.
|
Net Interest Income and Net Interest Margin
|
For the Quarters
Ended
|
|
December
|
|
September
|
|
December
|
(unaudited)
|
2013
|
|
2013
|
|
2012
|
|
(Dollars in
thousands)
|
Interest
income:
|
|
|
|
|
|
Loans held for
investment, excluding Warehouse Purchase Program loans
1
|
$
|
26,050
|
|
|
$
|
24,188
|
|
|
$
|
24,045
|
|
Warehouse
Purchase Program loans
|
5,138
|
|
|
6,617
|
|
|
9,202
|
|
Securities
|
3,273
|
|
|
3,038
|
|
|
3,203
|
|
Interest-earning deposit accounts
|
38
|
|
|
32
|
|
|
31
|
|
Total interest
income
|
$
|
34,499
|
|
|
$
|
33,875
|
|
|
$
|
36,481
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
30,069
|
|
|
$
|
29,188
|
|
|
$
|
31,528
|
|
Net interest
margin
|
3.83
|
%
|
|
3.63
|
%
|
|
3.77
|
%
|
Selected average
balances:
|
|
|
|
|
|
Total earning
assets
|
$
|
3,139,253
|
|
|
$
|
3,212,156
|
|
|
$
|
3,341,960
|
|
Total
loans
|
$
|
2,482,274
|
|
|
$
|
2,517,255
|
|
|
$
|
2,556,806
|
|
Total
securities
|
$
|
592,769
|
|
|
$
|
640,041
|
|
|
$
|
734,598
|
|
Total
deposits
|
$
|
2,240,333
|
|
|
$
|
2,204,371
|
|
|
$
|
2,180,354
|
|
Total
borrowings
|
$
|
468,855
|
|
|
$
|
587,651
|
|
|
$
|
770,627
|
|
Total
non-interest-bearing demand deposits
|
$
|
404,087
|
|
|
$
|
405,344
|
|
|
$
|
358,707
|
|
Total
interest-bearing liabilities
|
$
|
2,305,101
|
|
|
$
|
2,386,678
|
|
|
$
|
2,592,274
|
|
|
|
1
|
Warehouse Purchase
Program loans are now reported as loans held for investment rather
than as loans held for sale. Please see the Financial Condition
section for further information. Prior periods have been
reclassified to conform to the current presentation.
|
Net interest income for the quarter ended December 31, 2013, was $30.1 million, a $1.5
million decrease from the fourth quarter of 2012 and an
$881,000 increase from the third
quarter of 2013. The year-over-year decrease was primarily due to a
$2.1 million decrease in interest
income on loans, partially offset by a $523,000 decrease in interest expense and a
$70,000 increase in interest income
on securities. The increase in net interest income for the current
period compared to the third quarter of 2013 was primarily due to a
$383,000 and a $235,000 increase in interest income earned on
loans and securities, respectively, and a $257,000 decrease in interest expense.
The decrease in interest income on loans from the quarter ended
December 31, 2012, was primarily due
to a $4.1 million decrease in
interest income from Warehouse Purchase Program loans, as well as a
decline in yields earned on most loan portfolios. The average
balance of Warehouse Purchase Program loans decreased by
$366.2 million, or 40.3%, compared to
the fourth quarter of 2012. This decline was more than offset by a
$386.1 million, or 35.7%, increase in
the average balance of commercial loans. The average yield
earned on the Warehouse Purchase Program loan portfolio was 3.79%
for the fourth quarter of 2013, compared to an average yield of
5.37% earned on the commercial loan portfolio. Growth in commercial
loan volume was partially offset by lower yields, as the average
yield on commercial real estate and commercial and industrial loans
declined by 61 and 23 basis points, respectively, from the fourth
quarter of 2012. The average yield on loans decreased 17 basis
points to 5.03% for the fourth quarter of 2013, compared to 5.20%
for the fourth quarter of 2012.
The increase in interest income on loans from the linked quarter
was primarily due to an increase in average yields for the
comparable periods. Average balances on loans declined $35.0 million, while average yields on loans
increased 13 basis points to 5.03% for the fourth quarter of 2013,
compared to 4.90% for the third quarter 2013. A $124.0 million increase in the average balance of
commercial loans compared to the third quarter of 2013, was more
than offset by a $143.5 million
decline in the average balance of Warehouse Purchase Program loans.
The yield earned on loans was positively impacted in the fourth
quarter by a $532,000 recovery of
interest on a non-performing loan while the third quarter was
negatively impacted by a $377,000
reversal of interest income on three non-performing commercial real
estate loans that were sold at par in September 2013.
The average balance of securities declined $141.8 million or 19.3%, during the fourth
quarter of 2013 compared to the same period in 2012, while the
average yield on securities increased by 47 basis points for the
comparable periods. The decline in average balances in our
securities portfolio over the past year was primarily due to normal
paydowns and the sale of securities that were not consistent with
our portfolio strategy. The proceeds from the securities paydowns
and sales were re-deployed to support commercial loan growth and to
build liquidity in preparation for the merger with LegacyTexas
Group expected to close in the second quarter of 2014. Average
security balances for the linked quarters declined $47.3 million to $592.8
million, while the average yield on securities increased 31
basis points to 2.21%, compared to 1.90% for the immediately
preceding quarter.
Fourth quarter 2013 interest expense decreased $523,000 from the 2012 fourth quarter, primarily
due to a $454,000, or 17.2%, decrease
in the interest paid on FHLB advances and other borrowings, as a
result of lower average balances, partially offset by a 49 basis
point increase in interest rate and a $69,000, or 3.0%, decrease in interest paid on
deposits. The average balances of FHLB advances and other
borrowings declined by $301.8
million, or 39.2%, from the comparable prior year period,
primarily due to lower average Warehouse Purchase Program balances
during the 2013 period, of which a portion was strategically funded
with short-term advances. The average rate paid on interest-bearing
deposits declined by two basis points to 0.49% for the quarter
ended December 31, 2013, from 0.51%
for the quarter ended December 31,
2012. Average interest-bearing liabilities decreased by
$287.2 million to $2.3 billion for the quarter ended December 31, 2013, compared to $2.6 billion for the same period in 2012, while
the average cost of interest-bearing liabilities increased by one
basis point to 0.77% for the quarter ended December 31, 2013. The decline in interest
expense for the linked quarters was driven primarily by lower
average FHLB advances and other borrowings, as well as lower
average rates on interest-bearing deposits.
The net interest margin for the fourth quarter of 2013 was
3.83%, a six basis point increase from the fourth quarter of 2012
and a 20 basis point increase from the third quarter of 2013.
Accretion of interest related to the Highlands acquisition
contributed 10 basis points to the net interest margin for the
quarter ended December 31, 2013,
compared to seven basis points for the quarter ended September 30, 2013, and 12 basis points for the
fourth quarter of 2012. The average yield on earning assets for the
2013 fourth quarter was 4.40%, a three basis point increase from
the fourth quarter of 2012 and an 18 basis point increase from the
third quarter of 2013.
Non-interest Income
Non-interest income for the quarter ended December 31, 2013, was $5.0 million, a $1.5
million decrease from the fourth quarter of 2012 and a
$221,000 decrease from the third
quarter of 2013. The decrease from the fourth quarter of 2012 was
primarily attributable to a $1.3
million decrease in service charges and fees and a
$621,000 decrease in other
non-interest income for the comparable periods. Service charges and
fees decreased from the fourth quarter of 2012, driven by
$722,000 in commercial loan
prepayment penalty fees collected in the fourth quarter of 2012
that were not repeated in the fourth quarter of 2013; a
$424,000 decline in Warehouse
Purchase Program fees primarily due to fewer total loans funded
during the comparable periods; and a $226,000 decline in debit card income. The
decrease in other non-interest income for the comparable fourth
quarter periods was primarily due to $267,000 in higher gains on investments in
community development-oriented private equity funds used for
Community Reinvestment Act purposes experienced in the fourth
quarter of 2012.
The decrease in non-interest income from third quarter 2013 was
primarily due to a $201,000 decrease
in service charges and fees, primarily due to a decline in
Warehouse Purchase Program fees.
Non-interest Expenses
Non-interest expense for the quarter ended December 31, 2013, was $24.1 million, a $2.4
million increase from the fourth quarter of 2012 and a
$2.0 million increase from the third
quarter of 2013. The year-over-year increase in non-interest
expense was primarily due to a $1.1
million increase in salaries and employee benefits expense
and $663,000 in merger-related
costs. The increase in salaries and employee benefits expense
primarily reflected increased salaries and incentives, partially
offset by lower health care costs for the comparable periods. The
Company continued its growth strategy by adding high-level revenue
producers in lending and treasury management which led to increased
loan production and higher incentive-based bonuses.
The $2.0 million increase in
non-interest expense from the third quarter of 2013 was primarily
due to a $793,000 increase in
salaries and employee benefits expense, $663,000 in merger-related costs and a
$287,000 increase in occupancy and
equipment expense. The increase in salaries and employee benefits
expense primarily reflected increased salaries and incentives,
offset by a decrease in stock-based compensation and lower health
care costs for the comparable periods. Occupancy and equipment
expense increased primarily due to increased property taxes and
building and landscape maintenance costs.
Financial Condition
As previously disclosed in our 2013 third quarter Form 10-Q, the
Federal Financial Institutions Examination Council ("FFIEC") issued
Supplemental Instructions for the September
30, 2013 Call Report, stating that certain residential
mortgage loan purchase programs (like the Company's Warehouse
Purchase Program) should be reported as loans held for investment.
The Company has historically reported these loans as loans held for
sale in our Call Reports and US GAAP basis financial statements.
Based on more interpretation of regulatory guidance, we determined
during the fourth quarter of 2013 that these loans should have been
reported as loans held for investment on our consolidated balance
sheets. We will report these loans as held for investment in our
regularly filed financial reports commencing with our Annual Report
on Form 10-K for the year ended December 31,
2013, for all periods presented. The financial data included
in this release for prior periods reflect these loans as held for
investment. This change in classification of Warehouse Purchase
Program loans from loans held for sale to loans held for investment
had no impact to net income, total assets, or total shareholders'
equity.
Gross loans held for investment at December 31, 2013, excluding Warehouse Purchase
Program loans, increased by $116.2
million, or 6.0%, from September 30,
2013, and by $359.1 million,
or 21.2%, from December 31, 2012.
Warehouse Purchase Program loans at December
31, 2013, increased by $33.4
million, or 5.2%, from September 30,
2013, but decreased by $387.3
million, or 36.5%, from December
31, 2012. Commercial real estate loan balances at
December 31, 2013, increased by
$55.8 million, or 5.4%, from
September 30, 2013, and by
$265.9 million or 32.2%, from
December 31, 2012. Commercial and
industrial loans at December 31,
2013, increased by $48.7
million, or 12.5%, from September 30,
2013, and $160.9 million, or
57.8%, from December 31, 2012.
Commercial construction and land loans totaled $27.6 million, an increase of $14.6 million, or 111.7%, from September 30, 2013, and $13.1 million, or 89.6%, from December 31, 2012.
Energy loans, which are included in our commercial and
industrial loans, totaled $166.5
million at December 31, 2013,
up from $114.2 million at
September 30, 2013. In May 2013, the Company formed its Energy Finance
group, which focuses on providing loans to private and public oil
and gas companies throughout the United
States. The group's offerings also include the Bank's full
array of commercial services, including Treasury Management and
Letters of Credit.
Total deposits increased by $16.7
million, or 0.7%, to $2.3
billion from September 30,
2013. The total reflects increases in all deposit categories
except for time deposits. Compared to December 31, 2012, deposits increased by
$86.8 million, or 4.0%, which
included a $53.1 million increase in
non-interest-bearing demand deposits. Non-interest-bearing demand
deposits totaled $410.9 million, or
18.1%, of total deposits at December 31,
2013, reaching a new high for the category.
Total shareholders' equity increased by $4.4 million to $544.5
million at December 31, 2013,
from $540.1 million at September 30, 2013. The Company's tangible
common equity ratio was 14.7% at December
31, 2013, a decrease of 48 basis points from September 30, 2013, and an increase of 122 basis
points from December 31,
2012.
Credit Quality
|
At or For the
Quarters Ended
|
|
December
|
|
September
|
|
December
|
(unaudited)
|
2013
|
|
2013
|
|
2012
|
|
(Dollars in
thousands)
|
Net
charge-offs
|
$
|
127
|
|
|
$
|
250
|
|
|
$
|
1,767
|
|
Net
charge-offs/Average loans held for investment, excluding Warehouse
Purchase Program loans 1
|
0.03
|
%
|
|
0.05
|
%
|
|
0.43
|
%
|
Net
charge-offs/Average loans held for investment
1
|
0.02
|
|
|
0.04
|
|
|
0.28
|
|
Provision for loan
losses
|
$
|
616
|
|
|
$
|
(158)
|
|
|
$
|
(17)
|
|
Non-performing loans
("NPLs")
|
22,124
|
|
|
22,307
|
|
|
27,203
|
|
NPLs/Total loans held
for investment, excluding Warehouse Purchase Program loans
1
|
1.08
|
%
|
|
1.15
|
%
|
|
1.61
|
%
|
NPLs/Total loans held
for investment 1
|
0.81
|
|
|
0.87
|
|
|
0.99
|
|
Non-performing assets
("NPAs")
|
$
|
22,604
|
|
|
$
|
22,735
|
|
|
$
|
29,104
|
|
NPAs to total
assets
|
0.64
|
%
|
|
0.67
|
%
|
|
0.79
|
%
|
NPAs/Loans held for
investment and foreclosed assets, excluding Warehouse Purchase
Program loans 1
|
1.10
|
|
|
1.18
|
|
|
1.72
|
|
NPAs/Loans held for
investment and foreclosed assets 1
|
0.83
|
|
|
0.88
|
|
|
1.06
|
|
Allowance for loan
losses
|
$
|
19,358
|
|
|
$
|
18,869
|
|
|
$
|
18,051
|
|
Allowance for loan
losses/Total loans held for investment, excluding Warehouse
Purchase Program loans 1
|
0.94
|
%
|
|
0.98
|
%
|
|
1.07
|
%
|
Allowance for loan
losses/Total loans held for investment 1
|
0.71
|
|
|
0.73
|
|
|
0.66
|
|
ALL/Total Loans held
for investment, excluding acquired loans & Warehouse Purchase
Program loans 1, 2
|
1.00
|
|
|
1.05
|
|
|
1.23
|
|
Allowance for loan
losses/NPLs
|
87.50
|
|
|
84.59
|
|
|
66.36
|
|
|
|
1
|
Warehouse Purchase
Program loans are now reported as loans held for investment rather
than as loans held for sale. Please see the Financial Condition
section for further information. Prior periods have been
reclassified to conform to the current presentation.
|
2
|
Excludes loans
acquired from Highlands, which were initially recorded at fair
value.
|
The Company recorded a provision expense of $616,000 for the quarter ended December 31, 2013, compared to provision benefits
of $158,000 for the 2013 third
quarter and $17,000 for the quarter
ended December 31, 2012.
Non-performing loans to total loans held for investment, excluding
Warehouse Purchase Program loans, at December 31, 2013, was 1.08%, compared to 1.15%
at September 30, 2013, and 1.61% at
December 31, 2012. Non-performing
loans decreased by $183,000 to
$22.1 million at December 31, 2013, from $22.3 million at September
30, 2013, and decreased $5.1
million from $27.2 million at
December 31, 2012. At December 31, 2013, non-performing loans were at
their lowest level in nine quarters. In the third quarter of
2013, three commercial real estate loans that were placed in
nonaccrual status in September were sold at par in the same month,
which avoided an increase in non-performing loans, as well as any
potential losses on those three loans.
Net charge-offs totaled $127,000
for the fourth quarter of 2013, compared to $250,000 for the third quarter and $1.8 million for the fourth quarter of 2012.
Fourth quarter 2013 charge-offs declined to the lowest level since
the Company became publicly traded in 2006. Provision expense for
the quarter ended December 31, 2013,
totaled $616,000, up $774,000 from the quarter ended September 30, 2013, and up $633,000 from the quarter ended December 31, 2012, primarily due to increased
commercial loan production.
Subsequent Events
The Company is required under generally accepted accounting
principles to evaluate subsequent events through the filing of its
consolidated financial statements for the year ended December 31, 2013, on Form 10-K. As a
result, the Company will continue to evaluate the impact of any
subsequent events on critical accounting assumptions and estimates
made as of December 31, 2013, and
will adjust amounts preliminarily reported, if necessary.
Conference Call
The Company will also host an investor conference call to review
these results on Wednesday, February 5,
2014, at 8 a.m. Central Time.
Participants are asked to call (toll-free) 1-888-317-6016 at least
five minutes prior to the call. International participants
are asked to call 1-412-317-6016 and participants in Canada are asked to call (toll-free)
1-855-669-9657. 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 #10039602. 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, N.A. ViewPoint Bank, N.A. operates 31 banking
offices in the Dallas/Fort Worth
metropolitan area, including two First National Bank of
Jacksboro locations in Jack and
Wise Counties. For more information, please visit
www.viewpointbank.com or www.viewpointfinancialgroup.com.
When used in filings by the Company with the Securities and
Exchange Commission (the "SEC") in the Company's press releases or
other public or shareholder communications, and in oral statements
made with the approval of an authorized executive officer, the
words or phrases "will likely result," "are expected to," "will
continue," "is anticipated," "estimate," "project," "intends" or
similar expressions are intended to identify "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Such statements are subject to certain risks
and uncertainties, including, among other things: changes in
economic conditions; legislative changes; changes in policies by
regulatory agencies; fluctuations in interest rates; the risks of
lending and investing activities, including changes in the level
and direction of loan delinquencies and write-offs and changes in
estimates of the adequacy of the allowance for loan losses; the
Company's ability to access cost-effective funding; fluctuations in
real estate values and both residential and commercial real estate
market conditions; demand for loans and deposits in the Company's
market area; the industry-wide decline in mortgage production;
competition; changes in management's business strategies; our
ability to successfully integrate any assets, liabilities,
customers, systems and management personnel we have acquired or may
acquire into our operations and our ability to realize related
revenue synergies and cost savings within expected time frames and
any goodwill charges related thereto; and other factors set forth
under Risk Factors in the Company's Form 10-K that could cause
actual results to differ materially from historical earnings and
those presently anticipated or projected. The factors listed above
could materially affect the Company's financial performance and
could cause the Company's actual results for future periods to
differ materially from any opinions or statements expressed with
respect to future periods in any current statements.
The Company does not undertake—and specifically declines any
obligation—to publicly release the result of any revisions that may
be made to any forward-looking statements to reflect events or
circumstances occurring after the date of such statements.
VIEWPOINT
FINANCIAL GROUP, INC.
|
Consolidated
Balance Sheets
|
|
|
December 31,
2013
|
|
September 30,
2013
|
|
June 30,
2013
|
|
March 31,
2013
|
|
December 31,
2012
|
|
(Dollars in
thousands)
|
ASSETS
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
Cash and due from
financial institutions
|
$
|
30,012
|
|
|
$
|
33,803
|
|
|
$
|
30,504
|
|
|
$
|
25,724
|
|
|
$
|
34,227
|
|
Short-term
interest-bearing deposits in other financial
institutions
|
57,962
|
|
|
40,223
|
|
|
27,280
|
|
|
26,783
|
|
|
34,469
|
|
Total cash and
cash equivalents
|
87,974
|
|
|
74,026
|
|
|
57,784
|
|
|
52,507
|
|
|
68,696
|
|
Securities available
for sale, at fair value
|
248,012
|
|
|
264,657
|
|
|
287,834
|
|
|
315,438
|
|
|
287,034
|
|
Securities held to
maturity
|
294,583
|
|
|
307,822
|
|
|
330,969
|
|
|
329,993
|
|
|
360,554
|
|
Total
securities
|
542,595
|
|
|
572,479
|
|
|
618,803
|
|
|
645,431
|
|
|
647,588
|
|
Loans held for
investment - Warehouse Purchase Program 1
|
673,470
|
|
|
640,028
|
|
|
904,228
|
|
|
757,472
|
|
|
1,060,720
|
|
Loans held for
investment
|
2,049,902
|
|
|
1,933,669
|
|
|
1,835,187
|
|
|
1,745,737
|
|
|
1,690,769
|
|
Less: allowance for
loan losses and deferred fees on loans held for
investment
|
(20,625)
|
|
|
(19,513)
|
|
|
(19,162)
|
|
|
(18,282)
|
|
|
(17,565)
|
|
Net
loans
|
2,702,747
|
|
|
2,554,184
|
|
|
2,720,253
|
|
|
2,484,927
|
|
|
2,733,924
|
|
FHLB and Federal
Reserve Bank stock, at cost
|
34,883
|
|
|
29,632
|
|
|
41,475
|
|
|
31,607
|
|
|
45,025
|
|
Bank-owned life
insurance
|
35,565
|
|
|
35,379
|
|
|
35,231
|
|
|
35,078
|
|
|
34,916
|
|
Premises and
equipment, net
|
53,272
|
|
|
52,729
|
|
|
52,865
|
|
|
53,050
|
|
|
53,160
|
|
Goodwill
|
29,650
|
|
|
29,650
|
|
|
29,650
|
|
|
29,650
|
|
|
29,650
|
|
Other
assets
|
38,546
|
|
|
35,528
|
|
|
38,423
|
|
|
41,386
|
|
|
50,099
|
|
Total assets
|
$
|
3,525,232
|
|
|
$
|
3,383,607
|
|
|
$
|
3,594,484
|
|
|
$
|
3,373,636
|
|
|
$
|
3,663,058
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
demand
|
$
|
410,933
|
|
|
$
|
401,136
|
|
|
$
|
384,836
|
|
|
$
|
392,759
|
|
|
$
|
357,800
|
|
Interest-bearing
demand
|
474,515
|
|
|
451,248
|
|
|
464,262
|
|
|
481,966
|
|
|
488,748
|
|
Savings and money
market
|
904,576
|
|
|
896,330
|
|
|
887,082
|
|
|
888,874
|
|
|
880,924
|
|
Time
|
474,615
|
|
|
499,228
|
|
|
453,000
|
|
|
449,491
|
|
|
450,334
|
|
Total
deposits
|
2,264,639
|
|
|
2,247,942
|
|
|
2,189,180
|
|
|
2,213,090
|
|
|
2,177,806
|
|
FHLB
advances
|
639,096
|
|
|
511,166
|
|
|
800,208
|
|
|
564,221
|
|
|
892,208
|
|
Repurchase agreement
and other borrowings
|
25,000
|
|
|
25,000
|
|
|
25,000
|
|
|
25,000
|
|
|
25,000
|
|
Accrued expenses and
other liabilities
|
52,037
|
|
|
59,410
|
|
|
46,662
|
|
|
40,358
|
|
|
47,173
|
|
Total
liabilities
|
2,980,772
|
|
|
2,843,518
|
|
|
3,061,050
|
|
|
2,842,669
|
|
|
3,142,187
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
|
|
Common
stock
|
399
|
|
|
400
|
|
|
399
|
|
|
399
|
|
|
396
|
|
Additional paid-in
capital
|
377,657
|
|
|
375,563
|
|
|
373,378
|
|
|
373,492
|
|
|
372,168
|
|
Retained
earnings
|
183,236
|
|
|
180,787
|
|
|
176,569
|
|
|
172,386
|
|
|
164,328
|
|
Accumulated other
comprehensive income (loss), net
|
(383)
|
|
|
155
|
|
|
271
|
|
|
2,239
|
|
|
1,895
|
|
Unearned Employee
Stock Ownership Plan (ESOP) shares
|
(16,449)
|
|
|
(16,816)
|
|
|
(17,183)
|
|
|
(17,549)
|
|
|
(17,916)
|
|
Total shareholders'
equity
|
544,460
|
|
|
540,089
|
|
|
533,434
|
|
|
530,967
|
|
|
520,871
|
|
Total liabilities and
shareholders' equity
|
$
|
3,525,232
|
|
|
$
|
3,383,607
|
|
|
$
|
3,594,484
|
|
|
$
|
3,373,636
|
|
|
$
|
3,663,058
|
|
1
|
Warehouse Purchase
Program loans are now reported as loans held for investment rather
than as loans held for sale. Please see the Financial Condition
section for further information. Prior periods have been
reclassified to conform to the current presentation.
|
VIEWPOINT
FINANCIAL GROUP, INC.
|
Consolidated
Statements of Income
|
|
|
2013
|
|
2012
|
|
2011
|
Interest and dividend
income
|
(unaudited)
|
|
|
|
|
Loans,
including fees
|
$
|
124,522
|
|
|
$
|
120,596
|
|
|
$
|
88,238
|
|
Taxable
securities
|
9,780
|
|
|
14,850
|
|
|
25,830
|
|
Nontaxable
securities
|
2,133
|
|
|
1,891
|
|
|
1,892
|
|
Interest-bearing deposits in other financial
institutions
|
126
|
|
|
117
|
|
|
170
|
|
FHLB and
Federal Reserve Bank stock
|
528
|
|
|
538
|
|
|
94
|
|
|
137,089
|
|
|
137,992
|
|
|
116,224
|
|
Interest
expense
|
|
|
|
|
|
Deposits
|
9,545
|
|
|
11,453
|
|
|
22,474
|
|
FHLB
advances
|
8,503
|
|
|
9,807
|
|
|
9,882
|
|
Repurchase
agreement
|
816
|
|
|
876
|
|
|
816
|
|
Other
borrowings
|
5
|
|
|
33
|
|
|
474
|
|
|
18,869
|
|
|
22,169
|
|
|
33,646
|
|
Net interest
income
|
118,220
|
|
|
115,823
|
|
|
82,578
|
|
Provision for loan
losses
|
3,199
|
|
|
3,139
|
|
|
3,970
|
|
Net interest income
after provision for loan losses
|
115,021
|
|
|
112,684
|
|
|
78,608
|
|
Non-interest
income
|
|
|
|
|
|
Service
charges and fees
|
17,778
|
|
|
19,512
|
|
|
18,556
|
|
Other charges
and fees
|
937
|
|
|
579
|
|
|
723
|
|
Net gain on
sale of mortgage loans
|
—
|
|
|
5,436
|
|
|
7,639
|
|
Bank-owned
life insurance income
|
649
|
|
|
699
|
|
|
506
|
|
Gain (loss) on
sale of available for sale securities
|
(177)
|
|
|
1,014
|
|
|
6,268
|
|
Gain (loss) on
sale and disposition of assets
|
835
|
|
|
(191)
|
|
|
(798)
|
|
Impairment of
goodwill
|
—
|
|
|
(818)
|
|
|
(271)
|
|
Other
|
1,811
|
|
|
3,325
|
|
|
1,925
|
|
|
21,833
|
|
|
29,556
|
|
|
34,548
|
|
Non-interest
expense
|
|
|
|
|
|
Salaries and
employee benefits
|
53,328
|
|
|
51,719
|
|
|
47,360
|
|
Merger/Acquisition costs
|
663
|
|
|
4,127
|
|
|
—
|
|
Advertising
|
2,690
|
|
|
1,753
|
|
|
1,519
|
|
Occupancy and
equipment
|
7,675
|
|
|
7,365
|
|
|
5,966
|
|
Outside
professional services
|
2,760
|
|
|
2,320
|
|
|
2,644
|
|
Regulatory
assessments
|
2,477
|
|
|
2,534
|
|
|
2,401
|
|
Data
processing
|
6,727
|
|
|
6,109
|
|
|
4,648
|
|
Office
operations
|
6,783
|
|
|
7,144
|
|
|
5,972
|
|
Other
|
5,774
|
|
|
4,619
|
|
|
4,730
|
|
|
88,877
|
|
|
87,690
|
|
|
75,240
|
|
Income before income
tax expense
|
47,977
|
|
|
54,550
|
|
|
37,916
|
|
Income tax
expense
|
16,289
|
|
|
19,309
|
|
|
11,588
|
|
Net income
|
$
|
31,688
|
|
|
$
|
35,241
|
|
|
$
|
26,328
|
|
Earnings per
share:
|
|
|
|
|
|
Basic
|
$
|
0.83
|
|
|
$
|
0.98
|
|
|
$
|
0.81
|
|
Diluted
|
$
|
0.83
|
|
|
$
|
0.98
|
|
|
$
|
0.81
|
|
|
|
|
|
|
|
|
VIEWPOINT
FINANCIAL GROUP, INC.
|
Consolidated
Quarterly Statements of Income (unaudited)
|
|
|
For the Quarters
Ended
|
|
Fourth Quarter 2013
Compared to:
|
|
Dec 31,
2013
|
|
Sep 30,
2013
|
|
Jun 30,
2013
|
|
Mar 31,
2013
|
|
Dec 31,
2012
|
|
Third Quarter
2013
|
Fourth Quarter
2012
|
Interest and dividend
income
|
(Dollars in
thousands)
|
Loans,
including fees
|
$
|
31,188
|
|
|
$
|
30,805
|
|
|
$
|
32,151
|
|
|
$
|
30,378
|
|
|
$
|
33,247
|
|
|
$
|
383
|
|
1.2
|
%
|
$
|
(2,059)
|
|
(6.2)%
|
|
Taxable
securities
|
2,583
|
|
|
2,337
|
|
|
2,457
|
|
|
2,403
|
|
|
2,591
|
|
|
246
|
|
10.5
|
|
(8)
|
|
(0.3)
|
|
Nontaxable
securities
|
562
|
|
|
568
|
|
|
529
|
|
|
474
|
|
|
472
|
|
|
(6)
|
|
(1.1)
|
|
90
|
|
19.1
|
|
Interest-bearing deposits in other financial
institutions
|
38
|
|
|
32
|
|
|
25
|
|
|
31
|
|
|
31
|
|
|
6
|
|
18.8
|
|
7
|
|
22.6
|
|
FHLB and
Federal Reserve Bank stock
|
128
|
|
|
133
|
|
|
134
|
|
|
133
|
|
|
140
|
|
|
(5)
|
|
(3.8)
|
|
(12)
|
|
(8.6)
|
|
|
34,499
|
|
|
33,875
|
|
|
35,296
|
|
|
33,419
|
|
|
36,481
|
|
|
624
|
|
1.8
|
|
(1,982)
|
|
(5.4)
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
2,252
|
|
|
2,411
|
|
|
2,450
|
|
|
2,432
|
|
|
2,321
|
|
|
(159)
|
|
(6.6)
|
|
(69)
|
|
(3.0)
|
|
FHLB
advances
|
1,971
|
|
|
2,066
|
|
|
2,205
|
|
|
2,261
|
|
|
2,423
|
|
|
(95)
|
|
(4.6)
|
|
(452)
|
|
(18.7)
|
|
Repurchase
agreement
|
206
|
|
|
206
|
|
|
203
|
|
|
201
|
|
|
205
|
|
|
—
|
|
—
|
|
1
|
|
0.5
|
|
Other
borrowings
|
1
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
(3)
|
|
(75.0)
|
(3)
|
|
(75.0)
|
|
|
4,430
|
|
|
4,687
|
|
|
4,858
|
|
|
4,894
|
|
|
4,953
|
|
|
(257)
|
|
(5.5)
|
|
(523)
|
|
(10.6)
|
|
Net interest
income
|
30,069
|
|
|
29,188
|
|
|
30,438
|
|
|
28,525
|
|
|
31,528
|
|
|
881
|
|
3.0
|
|
(1,459)
|
|
(4.6)
|
|
Provision (benefit)
for loan losses
|
616
|
|
|
(158)
|
|
|
1,858
|
|
|
883
|
|
|
(17)
|
|
|
774
|
|
N/M
1
|
633
|
|
N/M
1
|
Net interest income
after provision (benefit) for loan losses
|
29,453
|
|
|
29,346
|
|
|
28,580
|
|
|
27,642
|
|
|
31,545
|
|
|
107
|
|
0.4
|
|
(2,092)
|
|
(6.6)
|
|
Non-interest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
charges and fees
|
4,259
|
|
|
4,460
|
|
|
4,768
|
|
|
4,291
|
|
|
5,562
|
|
|
(201)
|
|
(4.5)
|
|
(1,303)
|
|
(23.4)
|
|
Other charges
and fees
|
246
|
|
|
300
|
|
|
179
|
|
|
212
|
|
|
142
|
|
|
(54)
|
|
(18.0)
|
|
104
|
|
73.2
|
|
Bank-owned
life insurance income
|
186
|
|
|
148
|
|
|
153
|
|
|
162
|
|
|
216
|
|
|
38
|
|
25.7
|
|
(30)
|
|
(13.9)
|
|
Loss on sale
of available for sale securities
|
—
|
|
|
—
|
|
|
—
|
|
|
(177)
|
|
|
—
|
|
|
—
|
|
N/M
1
|
—
|
|
N/M
1
|
Gain (loss) on
sale and disposition of assets
|
120
|
|
|
41
|
|
|
444
|
|
|
230
|
|
|
(241)
|
|
|
79
|
|
192.7
|
|
361
|
|
(149.8)
|
|
Other
|
194
|
|
|
277
|
|
|
199
|
|
|
1,141
|
|
|
815
|
|
|
(83)
|
|
(30.0)
|
|
(621)
|
|
(76.2)
|
|
|
5,005
|
|
|
5,226
|
|
|
5,743
|
|
|
5,859
|
|
|
6,494
|
|
|
(221)
|
|
(4.2)
|
|
(1,489)
|
|
(22.9)
|
|
Non-interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
employee benefits
|
14,339
|
|
|
13,546
|
|
|
12,528
|
|
|
12,915
|
|
|
13,200
|
|
|
793
|
|
5.9
|
|
1,139
|
|
8.6
|
|
Merger/Acquisition costs
|
663
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
663
|
|
N/M
1
|
663
|
|
N/M
1
|
Advertising
|
760
|
|
|
666
|
|
|
751
|
|
|
513
|
|
|
599
|
|
|
94
|
|
14.1
|
|
161
|
|
26.9
|
|
Occupancy and
equipment
|
2,117
|
|
|
1,830
|
|
|
1,938
|
|
|
1,790
|
|
|
1,934
|
|
|
287
|
|
15.7
|
|
183
|
|
9.5
|
|
Outside
professional services
|
824
|
|
|
682
|
|
|
570
|
|
|
684
|
|
|
568
|
|
|
142
|
|
20.8
|
|
256
|
|
45.1
|
|
Regulatory
assessments
|
619
|
|
|
629
|
|
|
650
|
|
|
579
|
|
|
661
|
|
|
(10)
|
|
(1.6)
|
|
(42)
|
|
(6.4)
|
|
Data
processing
|
1,747
|
|
|
1,733
|
|
|
1,729
|
|
|
1,518
|
|
|
1,717
|
|
|
14
|
|
0.8
|
|
30
|
|
1.7
|
|
Office
operations
|
1,781
|
|
|
1,603
|
|
|
1,751
|
|
|
1,648
|
|
|
1,831
|
|
|
178
|
|
11.1
|
|
(50)
|
|
(2.7)
|
|
Other
|
1,278
|
|
|
1,484
|
|
|
1,786
|
|
|
1,226
|
|
|
1,195
|
|
|
(206)
|
|
(13.9)
|
|
83
|
|
6.9
|
|
|
24,128
|
|
|
22,173
|
|
|
21,703
|
|
|
20,873
|
|
|
21,705
|
|
|
1,955
|
|
8.8
|
|
2,423
|
|
11.2
|
|
Income before income
tax expense
|
10,330
|
|
|
12,399
|
|
|
12,620
|
|
|
12,628
|
|
|
16,334
|
|
|
(2,069)
|
|
(16.7)
|
|
(6,004)
|
|
(36.8)
|
|
Income tax
expense
|
3,086
|
|
|
4,187
|
|
|
4,446
|
|
|
4,570
|
|
|
5,973
|
|
|
(1,101)
|
|
(26.3)
|
|
(2,887)
|
|
(48.3)
|
|
Net income
|
$
|
7,244
|
|
|
$
|
8,212
|
|
|
$
|
8,174
|
|
|
$
|
8,058
|
|
|
$
|
10,361
|
|
|
$
|
(968)
|
|
(11.8)%
|
|
$
|
(3,117)
|
|
(30.1)%
|
|
VIEWPOINT
FINANCIAL GROUP, INC.
|
Selected Financial
Highlights (unaudited)
|
|
|
At or For the
Quarters Ended
|
|
At or for the Years
Ended
|
|
December
|
|
September
|
|
December
|
|
December
|
|
December
|
|
2013
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(Dollars in
thousands, except share and per share amounts)
|
SHARE
DATA:
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding- basic
|
37,686,866
|
|
|
37,594,701
|
|
|
37,460,539
|
|
|
37,589,548
|
|
|
35,879,704
|
|
Weighted average
common shares outstanding- diluted
|
37,911,775
|
|
|
37,774,400
|
|
|
37,592,618
|
|
|
37,744,786
|
|
|
35,998,345
|
|
Shares outstanding at
end of period
|
39,938,816
|
|
|
39,951,884
|
|
|
39,612,911
|
|
|
39,938,816
|
|
|
39,612,911
|
|
Income available to
common shareholders1
|
$
|
7,147
|
|
|
$
|
8,096
|
|
|
$
|
10,310
|
|
|
$
|
31,294
|
|
|
$
|
35,135
|
|
Basic earnings per
common share
|
0.19
|
|
|
0.22
|
|
|
0.28
|
|
|
0.83
|
|
|
0.98
|
|
Diluted earnings per
common share
|
0.19
|
|
|
0.21
|
|
|
0.27
|
|
|
0.83
|
|
|
0.98
|
|
Dividends declared
per share 5
|
0.12
|
|
|
0.10
|
|
|
0.20
|
|
|
0.32
|
|
|
0.40
|
|
Total shareholders'
equity
|
544,460
|
|
|
540,089
|
|
|
520,871
|
|
|
544,460
|
|
|
520,871
|
|
Common shareholders'
equity per share (book value per share)
|
13.63
|
|
|
13.52
|
|
|
13.15
|
|
|
13.63
|
|
|
13.15
|
|
Tangible book value
per share- Non-GAAP2
|
12.86
|
|
|
12.74
|
|
|
12.36
|
|
|
12.86
|
|
|
12.36
|
|
Market value per
share for the quarter:
|
|
|
|
|
|
|
|
|
|
High
|
27.66
|
|
|
22.34
|
|
|
21.80
|
|
|
27.66
|
|
|
21.80
|
|
Low
|
20.19
|
|
|
19.62
|
|
|
19.30
|
|
|
17.97
|
|
|
13.19
|
|
Close
|
$
|
27.45
|
|
|
$
|
20.67
|
|
|
$
|
20.94
|
|
|
$
|
27.45
|
|
|
$
|
20.94
|
|
KEY
RATIOS:
|
|
|
|
|
|
|
|
|
|
Return on average
common shareholders' equity
|
5.34
|
%
|
|
6.11
|
%
|
|
7.96
|
%
|
|
5.92
|
%
|
|
7.23
|
%
|
Return on average
assets
|
0.87
|
|
|
0.97
|
|
|
1.17
|
|
|
0.94
|
|
|
1.04
|
|
Efficiency
ratio3
|
67.07
|
|
|
64.28
|
|
|
56.99
|
|
|
63.41
|
|
|
58.12
|
|
Estimated Tier 1
risk-based capital ratio4
|
18.17
|
|
|
19.17
|
|
|
21.67
|
|
|
18.17
|
|
|
21.67
|
|
Estimated total
risk-based capital ratio4
|
18.85
|
|
|
19.88
|
|
|
22.47
|
|
|
18.85
|
|
|
22.47
|
|
Estimated Tier 1
leverage ratio4
|
15.67
|
|
|
15.17
|
|
|
13.97
|
|
|
15.67
|
|
|
13.97
|
|
Tangible equity to
tangible assets- Non-GAAP2
|
14.70
|
%
|
|
15.18
|
%
|
|
13.48
|
%
|
|
14.70
|
%
|
|
13.48
|
%
|
Number of employees-
full-time equivalent
|
561
|
|
|
561
|
|
|
557
|
|
|
561
|
|
|
557
|
|
1
|
Net of distributed
and undistributed earnings to participating securities.
|
2
|
See the section
labeled "Supplemental Information- Non-GAAP Financial Measures" at
the end of this document.
|
3
|
Calculated by
dividing total non-interest expense by net interest income plus
non-interest income, excluding gain (loss) on assets, impairment of
goodwill, amortization of intangible assets, gains (losses) from
securities transactions and other non-recurring items.
|
4
|
Calculated at the
ViewPoint Financial Group, Inc. level, which is subject to the
capital adequacy requirements of the Federal Reserve.
Beginning March 2013, capital ratios reflect a risk weighting
change from 50% to 100% on our Warehouse Purchase Program
loans.
|
5
|
The December 31,
2012, quarter included two dividend payments of $0.10
each.
|
VIEWPOINT
FINANCIAL GROUP, INC.
|
Selected Loan Data
(unaudited)
|
|
|
Ending Balances
at
|
|
December 31,
2013
|
|
September 30,
2013
|
|
June 30,
2013
|
|
March 31,
2013
|
|
December 31,
2012
|
Loans:
|
(Dollars in
thousands)
|
Commercial real
estate
|
$
|
1,091,200
|
|
|
$
|
1,035,383
|
|
|
$
|
990,227
|
|
|
$
|
882,492
|
|
|
$
|
825,340
|
|
Warehouse Purchase
Program loans
|
673,470
|
|
|
640,028
|
|
|
904,228
|
|
|
757,472
|
|
|
1,060,720
|
|
Commercial and
industrial loans:
|
|
|
|
|
|
|
|
|
|
Commercial
|
425,030
|
|
|
373,390
|
|
|
288,054
|
|
|
271,605
|
|
|
245,799
|
|
Warehouse
lines of credit
|
14,400
|
|
|
17,356
|
|
|
24,977
|
|
|
30,861
|
|
|
32,726
|
|
Total commercial and
industrial loans
|
439,430
|
|
|
390,746
|
|
|
313,031
|
|
|
302,466
|
|
|
278,525
|
|
Construction and land
loans
|
|
|
|
|
|
|
|
|
|
Commercial
construction and land
|
27,619
|
|
|
13,045
|
|
|
14,491
|
|
|
15,042
|
|
|
14,568
|
|
Consumer
construction and land
|
2,628
|
|
|
2,307
|
|
|
5,980
|
|
|
6,531
|
|
|
6,614
|
|
Total Construction
and land loans
|
30,247
|
|
|
15,352
|
|
|
20,471
|
|
|
21,573
|
|
|
21,182
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
Consumer real
estate
|
441,226
|
|
|
442,073
|
|
|
459,076
|
|
|
484,068
|
|
|
506,642
|
|
Other consumer
loans
|
47,799
|
|
|
50,115
|
|
|
52,382
|
|
|
55,138
|
|
|
59,080
|
|
Total
consumer
|
489,025
|
|
|
492,188
|
|
|
511,458
|
|
|
539,206
|
|
|
565,722
|
|
Gross loans held for investment
|
$
|
2,723,372
|
|
|
$
|
2,573,697
|
|
|
$
|
2,739,415
|
|
|
$
|
2,503,209
|
|
|
$
|
2,751,489
|
|
Non-performing
assets:
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
$
|
7,604
|
|
|
$
|
7,770
|
|
|
$
|
8,625
|
|
|
$
|
12,696
|
|
|
$
|
13,609
|
|
Commercial and
industrial
|
5,141
|
|
|
5,788
|
|
|
6,849
|
|
|
6,807
|
|
|
5,401
|
|
Consumer real
estate
|
8,812
|
|
|
8,237
|
|
|
7,913
|
|
|
7,840
|
|
|
7,931
|
|
Other consumer
loans
|
567
|
|
|
512
|
|
|
412
|
|
|
378
|
|
|
262
|
|
Total non-performing loans
|
22,124
|
|
|
22,307
|
|
|
23,799
|
|
|
27,721
|
|
|
27,203
|
|
Foreclosed
assets
|
480
|
|
|
428
|
|
|
557
|
|
|
1,505
|
|
|
1,901
|
|
Total non-performing assets
|
$
|
22,604
|
|
|
$
|
22,735
|
|
|
$
|
24,356
|
|
|
$
|
29,226
|
|
|
$
|
29,104
|
|
Total non-performing
assets to total assets
|
0.64
|
%
|
|
0.67
|
%
|
|
0.68
|
%
|
|
0.87
|
%
|
|
0.79
|
%
|
Total non-performing
loans to total loans held for investment, excluding Warehouse
Purchase Program loans 1
|
1.08
|
%
|
|
1.15
|
%
|
|
1.30
|
%
|
|
1.59
|
%
|
|
1.61
|
%
|
Total non-performing
loans to total loans held for investment 1
|
0.81
|
%
|
|
0.87
|
%
|
|
0.87
|
%
|
|
1.11
|
%
|
|
0.99
|
%
|
Allowance for loan
losses to non-performing loans
|
87.50
|
%
|
|
84.59
|
%
|
|
81.00
|
%
|
|
67.25
|
%
|
|
66.36
|
%
|
Allowance for loan
losses to total loans held for investment, excluding Warehouse
Purchase Program loans 1
|
0.94
|
%
|
|
0.98
|
%
|
|
1.05
|
%
|
|
1.07
|
%
|
|
1.07
|
%
|
Allowance for loan
losses to total loans held for investment 1
|
0.71
|
%
|
|
0.73
|
%
|
|
0.70
|
%
|
|
0.74
|
%
|
|
0.66
|
%
|
Allowance for loan
losses to total loans held for investment excluding acquired loans
and Warehouse Purchase Program loans 1, 2
|
1.00
|
%
|
|
1.05
|
%
|
|
1.15
|
%
|
|
1.19
|
%
|
|
1.23
|
%
|
Troubled debt
restructured loans ("TDRs"):
|
|
|
|
|
|
|
|
|
|
Performing
TDRs:
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,372
|
|
|
$
|
3,384
|
|
Commercial and
industrial
|
185
|
|
|
190
|
|
|
196
|
|
|
202
|
|
|
207
|
|
Construction
and land
|
2
|
|
|
3
|
|
|
4
|
|
|
4
|
|
|
5
|
|
Consumer real
estate
|
737
|
|
|
741
|
|
|
744
|
|
|
959
|
|
|
553
|
|
Other consumer
loans
|
47
|
|
|
51
|
|
|
54
|
|
|
62
|
|
|
67
|
|
Total performing TDRs
|
$
|
971
|
|
|
$
|
985
|
|
|
$
|
998
|
|
|
$
|
4,599
|
|
|
$
|
4,216
|
|
Non-performing
TDRs:3
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$
|
7,446
|
|
|
$
|
7,559
|
|
|
$
|
8,344
|
|
|
$
|
11,786
|
|
|
$
|
11,218
|
|
Commercial and
industrial
|
349
|
|
|
277
|
|
|
75
|
|
|
71
|
|
|
102
|
|
Consumer real
estate
|
3,070
|
|
|
2,690
|
|
|
2,215
|
|
|
2,018
|
|
|
2,235
|
|
Other consumer
loans
|
503
|
|
|
470
|
|
|
317
|
|
|
261
|
|
|
205
|
|
Total non-performing TDRs
|
$
|
11,368
|
|
|
$
|
10,996
|
|
|
$
|
10,951
|
|
|
$
|
14,136
|
|
|
$
|
13,760
|
|
Allowance for loan
losses:
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
18,869
|
|
|
19,277
|
|
|
18,642
|
|
|
18,051
|
|
|
19,835
|
|
Provision
expense (benefit)
|
616
|
|
|
(158)
|
|
|
1,858
|
|
|
883
|
|
|
(17)
|
|
Charge-offs
|
(255)
|
|
|
(356)
|
|
|
(1,394)
|
|
|
(476)
|
|
|
(1,936)
|
|
Recoveries
|
128
|
|
|
106
|
|
|
171
|
|
|
184
|
|
|
169
|
|
Balance at end of period
|
$
|
19,358
|
|
|
$
|
18,869
|
|
|
$
|
19,277
|
|
|
$
|
18,642
|
|
|
$
|
18,051
|
|
Net charge-offs
(recoveries)
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$
|
—
|
|
|
$
|
34
|
|
|
$
|
716
|
|
|
$
|
56
|
|
|
$
|
185
|
|
Commercial and
industrial
|
43
|
|
|
204
|
|
|
64
|
|
|
172
|
|
|
893
|
|
Construction
and land
|
—
|
|
|
—
|
|
|
—
|
|
|
31
|
|
|
—
|
|
Consumer real
estate
|
14
|
|
|
(18)
|
|
|
320
|
|
|
23
|
|
|
437
|
|
Other consumer
loans
|
70
|
|
|
30
|
|
|
123
|
|
|
10
|
|
|
252
|
|
Total net charge-offs
|
$
|
127
|
|
|
$
|
250
|
|
|
$
|
1,223
|
|
|
$
|
292
|
|
|
$
|
1,767
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Warehouse Purchase
Program loans are now reported as loans held for investment rather
than as loans held for sale. Please see the Financial Condition
section for further information. Prior periods have been
reclassified to conform to the current presentation.
|
2
|
Excludes loans
acquired from Highlands, which were initially recorded at fair
value.
|
3
|
Non-performing TDRs
are included in the non-performing assets above.
|
VIEWPOINT
FINANCIAL GROUP, INC.
|
Average Balances
and Yields/Rates (unaudited)
|
|
|
For the Quarters
Ended
|
|
December 31,
2013
|
|
September 30,
2013
|
|
June 30,
2013
|
|
March 31,
2013
|
|
December 31,
2012
|
Loans:
|
(Dollars in
thousands)
|
Commercial
real estate
|
$
|
1,077,112
|
|
|
$
|
1,007,449
|
|
|
$
|
961,631
|
|
|
$
|
839,155
|
|
|
$
|
805,362
|
|
Warehouse
Purchase Program loans
|
542,367
|
|
|
685,852
|
|
|
755,577
|
|
|
738,234
|
|
|
908,603
|
|
Commercial and
industrial loans:
|
|
|
|
|
|
|
|
|
|
Commercial
|
376,557
|
|
|
316,506
|
|
|
288,481
|
|
|
257,510
|
|
|
251,447
|
|
Warehouse lines of credit
|
15,316
|
|
|
21,077
|
|
|
27,670
|
|
|
26,037
|
|
|
26,072
|
|
Consumer real
estate
|
441,722
|
|
|
453,939
|
|
|
476,226
|
|
|
504,965
|
|
|
524,213
|
|
Other consumer
loans
|
49,202
|
|
|
51,414
|
|
|
53,759
|
|
|
57,164
|
|
|
60,435
|
|
Less: deferred
fees and allowance for loan loss
|
(20,002)
|
|
|
(18,982)
|
|
|
(18,649)
|
|
|
(17,240)
|
|
|
(19,326)
|
|
Loans
receivable
|
2,482,274
|
|
|
2,517,255
|
|
|
2,544,695
|
|
|
2,405,825
|
|
|
2,556,806
|
|
Securities
|
592,769
|
|
|
640,041
|
|
|
680,931
|
|
|
674,109
|
|
|
734,598
|
|
Overnight
deposits
|
64,210
|
|
|
54,860
|
|
|
45,810
|
|
|
54,096
|
|
|
50,556
|
|
Total interest-earning assets
|
$
|
3,139,253
|
|
|
$
|
3,212,156
|
|
|
$
|
3,271,436
|
|
|
$
|
3,134,030
|
|
|
$
|
3,341,960
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
|
$
|
455,983
|
|
|
$
|
448,241
|
|
|
$
|
459,433
|
|
|
$
|
465,385
|
|
|
$
|
463,465
|
|
Savings and
money market
|
902,019
|
|
|
892,355
|
|
|
883,507
|
|
|
877,690
|
|
|
888,410
|
|
Time
|
478,244
|
|
|
458,431
|
|
|
451,110
|
|
|
450,071
|
|
|
469,772
|
|
FHLB advances and
other borrowings
|
468,855
|
|
|
587,651
|
|
|
679,693
|
|
|
590,238
|
|
|
770,627
|
|
Total interest-bearing liabilities
|
$
|
2,305,101
|
|
|
$
|
2,386,678
|
|
|
$
|
2,473,743
|
|
|
$
|
2,383,384
|
|
|
$
|
2,592,274
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
|
3,318,500
|
|
|
$
|
3,390,837
|
|
|
$
|
3,453,699
|
|
|
$
|
3,322,899
|
|
|
$
|
3,529,665
|
|
Non-interest-bearing
demand deposits
|
$
|
404,087
|
|
|
$
|
405,344
|
|
|
$
|
393,815
|
|
|
$
|
367,217
|
|
|
$
|
358,707
|
|
Total
deposits
|
$
|
2,240,333
|
|
|
$
|
2,204,371
|
|
|
$
|
2,187,865
|
|
|
$
|
2,160,363
|
|
|
$
|
2,180,354
|
|
Total shareholders'
equity
|
$
|
542,360
|
|
|
$
|
537,901
|
|
|
$
|
532,897
|
|
|
$
|
527,958
|
|
|
$
|
520,684
|
|
|
|
|
|
|
|
|
|
|
|
Yields/Rates:
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
5.56
|
%
|
|
5.50
|
%
|
|
5.85
|
%
|
|
5.88
|
%
|
|
6.17
|
%
|
Warehouse
Purchase Program loans
|
3.79
|
%
|
|
3.86
|
%
|
|
3.87
|
%
|
|
3.92
|
%
|
|
4.05
|
%
|
Commercial and industrial loans:
|
|
|
|
|
|
|
|
|
|
Commercial
|
4.92
|
%
|
|
4.45
|
%
|
|
4.97
|
%
|
|
4.72
|
%
|
|
5.24
|
%
|
Warehouse lines of credit
|
3.51
|
%
|
|
3.56
|
%
|
|
3.57
|
%
|
|
3.63
|
%
|
|
3.71
|
%
|
Consumer real
estate
|
5.05
|
%
|
|
5.15
|
%
|
|
5.16
|
%
|
|
5.30
|
%
|
|
5.48
|
%
|
Other consumer
loans
|
6.07
|
%
|
|
6.19
|
%
|
|
5.94
|
%
|
|
5.84
|
%
|
|
6.00
|
%
|
Loans
receivable
|
5.03
|
%
|
|
4.90
|
%
|
|
5.05
|
%
|
|
5.05
|
%
|
|
5.20
|
%
|
Securities
|
2.21
|
%
|
|
1.90
|
%
|
|
1.83
|
%
|
|
1.79
|
%
|
|
1.74
|
%
|
Overnight
deposits
|
0.24
|
%
|
|
0.23
|
%
|
|
0.22
|
%
|
|
0.23
|
%
|
|
0.25
|
%
|
Total interest-earning assets
|
4.40
|
%
|
|
4.22
|
%
|
|
4.32
|
%
|
|
4.27
|
%
|
|
4.37
|
%
|
Deposits:
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand
|
0.38
|
%
|
|
0.39
|
%
|
|
0.41
|
%
|
|
0.40
|
%
|
|
0.43
|
%
|
Savings and money
market
|
0.28
|
%
|
|
0.28
|
%
|
|
0.27
|
%
|
|
0.27
|
%
|
|
0.27
|
%
|
Time
|
0.99
|
%
|
|
1.18
|
%
|
|
1.23
|
%
|
|
1.22
|
%
|
|
1.03
|
%
|
FHLB advances and
other borrowings
|
1.86
|
%
|
|
1.55
|
%
|
|
1.42
|
%
|
|
1.67
|
%
|
|
1.37
|
%
|
Total interest-bearing liabilities
|
0.77
|
%
|
|
0.79
|
%
|
|
0.79
|
%
|
|
0.82
|
%
|
|
0.76
|
%
|
Net interest
spread
|
3.63
|
%
|
|
3.43
|
%
|
|
3.53
|
%
|
|
3.45
|
%
|
|
3.61
|
%
|
Net interest
margin
|
3.83
|
%
|
|
3.63
|
%
|
|
3.72
|
%
|
|
3.64
|
%
|
|
3.77
|
%
|
Cost of deposits
(including non-interest-bearing demand)
|
0.40
|
%
|
|
0.44
|
%
|
|
0.45
|
%
|
|
0.45
|
%
|
|
0.43
|
%
|
VIEWPOINT
FINANCIAL GROUP, INC.
|
Supplemental
Information- Non-GAAP Financial Measures (unaudited)
|
|
|
Ending Balances
At
|
|
December 31,
2013
|
|
September 30,
2013
|
|
June 30,
2013
|
|
March 31,
2013
|
|
December 31,
2012
|
Calculation of
Tangible Book Value per Share:
|
(Dollars in
thousands, except per share amounts)
|
Total shareholders'
equity
|
$
|
544,460
|
|
|
$
|
540,089
|
|
|
$
|
533,434
|
|
|
$
|
530,967
|
|
|
$
|
520,871
|
|
Less:
Goodwill
|
(29,650)
|
|
|
(29,650)
|
|
|
(29,650)
|
|
|
(29,650)
|
|
|
(29,650)
|
|
Identifiable
intangible assets, net
|
(1,239)
|
|
|
(1,365)
|
|
|
(1,446)
|
|
|
(1,541)
|
|
|
(1,653)
|
|
Total tangible
shareholders' equity
|
$
|
513,571
|
|
|
$
|
509,074
|
|
|
$
|
502,338
|
|
|
$
|
499,776
|
|
|
$
|
489,568
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding at
end of period
|
39,938,816
|
|
39,951,884
|
|
39,926,716
|
|
|
39,948,031
|
|
|
39,612,911
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share-
GAAP
|
$
|
13.63
|
|
|
$
|
13.52
|
|
|
$
|
13.36
|
|
|
$
|
13.29
|
|
|
$
|
13.15
|
|
Tangible book value
per share- Non-GAAP
|
12.86
|
|
|
12.74
|
|
|
12.58
|
|
|
12.51
|
|
|
12.36
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of
Tangible Equity to Tangible Assets:
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
|
3,525,232
|
|
|
$
|
3,383,607
|
|
|
$
|
3,594,484
|
|
|
$
|
3,373,636
|
|
|
$
|
3,663,058
|
|
Less:
Goodwill
|
(29,650)
|
|
|
(29,650)
|
|
|
(29,650)
|
|
|
(29,650)
|
|
|
(29,650)
|
|
Identifiable
intangible assets, net
|
(1,239)
|
|
|
(1,365)
|
|
|
(1,446)
|
|
|
(1,541)
|
|
|
(1,653)
|
|
Total tangible
assets
|
$
|
3,494,343
|
|
|
$
|
3,352,592
|
|
|
$
|
3,563,388
|
|
|
$
|
3,342,445
|
|
|
$
|
3,631,755
|
|
|
|
|
|
|
|
|
|
|
|
Equity to assets-
GAAP
|
15.44
|
%
|
|
15.96
|
%
|
|
14.84
|
%
|
|
15.74
|
%
|
|
14.22
|
%
|
Tangible common
equity to tangible assets- Non-GAAP
|
14.70
|
|
|
15.18
|
|
|
14.10
|
|
|
14.95
|
|
|
13.48
|
|
SOURCE ViewPoint Financial Group, Inc.