VIST FINANCIAL CORP. 
By WYOMISSING, Pa., Jan. 25, 2011 /PRNewswire/ -- VIST Financial Corp. ("Company") (Nasdaq: VIST) reported net income for the twelve months ended December 31, 2010 of $3,984,000, a $3,377,000 or a 556.3% increase over net income of $607,000 for the same period in 2009. The Company also reported net income for the three months ended December 31, 2010 of $1,347,000, a $918,000 or a 214.0% increase over net income of $429,000 for the same period in 2009.
On November 19, 2010, the Company acquired certain assets and assumed certain liabilities of Allegiance Bank of North America ("Allegiance") of Bala Cynwyd, Pennsylvania, through an FDIC-assisted whole bank acquisition. The Allegiance acquisition added five full-service locations in Chester and Philadelphia counties, of which the Company expects to close one by March 31, 2011. As part of the Allegiance acquisition, the Company entered into a loss-sharing agreement with the FDIC that covers a portion of losses incurred after the acquisition date on loans and other real estate owned. As of the acquisition date, the Company recorded $6,999,000 as an indemnification asset, which represents the present value of the estimated loss share reimbursements expected to be received from the FDIC for future losses on covered assets. As part of the agreement, the FDIC will reimburse the Company for 70% of any losses incurred related to loans and other real estate owned covered under the loss-sharing agreement. Realized losses in excess of the acquisition date estimates will result in the FDIC increasing its reimbursement to the Company to 80%.
The acquisition has been accounted for under the acquisition method of accounting. The assets and liabilities, both tangible and intangible, were recorded at their estimated fair values as of the November 19, 2010 acquisition date. Prior to purchase accounting adjustments, the Company assumed approximately $93,000,000 in deposit liabilities and acquired certain assets of approximately $106,000,000. The application of the acquisition method of accounting resulted in recorded goodwill of $1,547,000. Fair value adjustments include a write-down of $12,925,000 related to the covered loan portfolio, and increased liabilities of $534,000 related to time deposits and $553,000 related to long-term debt. The Company estimates accretable interest on the covered loan portfolio of approximately $3,500,000 and additional non-interest income of $500,000 related to the accretion of the FDIC indemnification asset, which will be recognized over the remaining maturity of the covered loan portfolio.
The Company further reported that the board of directors declared a cash dividend of $0.05 per share on the Company's common stock to shareholders of record on February 4, 2011 payable February 15, 2011.
Commenting on the full year and fourth quarter of 2010, Robert D. Davis, President and Chief Executive Officer of VIST Financial Corp. said, "Our financial performance in 2010 and the fourth quarter of the year represent a material improvement over 2009 results, however we acknowledge our results continue to be influenced by lagging effects of the national and regional recession. In spite of the economic headwinds, we are pleased with our linked quarter improvement in core operating earnings, significant loan growth as well as an increase in non-interest income. Of equal importance, our non-performing asset quality trends continue to remain relatively stable. Exclusive of certain expenses related to provision expense, other than temporary impairment ("OTTI") charges on the Company's investment portfolio, and other real estate expenses, our overall expenses were flat."
Davis continued, "During the year, we experienced an improvement in our net interest margin, which we believe is sustainable at current levels through 2011. Importantly, our non-interest fee based revenue from our retail banking, insurance, residential mortgage and wealth management businesses continues to represent 31% of our total net revenue."
Davis further stated, "The Allegiance acquisition contributed $51,000 to our fourth quarter pre-tax net income which included one-time net charges of $117,000. This strategic acquisition represents a significant market extension of our core Berks, Schuylkill and Montgomery county markets allowing VIST to better serve the financial services needs of customers in Philadelphia and the surrounding suburbs. We expect this acquisition will be immediately accretive to our shareholders."
Davis concluded, "We are pleased that our board of directors has declared a cash dividend. By this action, our board respects both the need to preserve capital while demonstrating confidence in our future operating results."
Net Interest Income
For the twelve months ended December 31, 2010, net interest income before the provision for loan losses increased 15.0% to $40,744,000 compared to $35,422,000 for the same period in 2009. The increase in net interest income for the twelve months resulted from a 2.1% increase in total interest income to $64,087,000 from $62,740,000 and a 14.6% reduction in total interest expense to $23,343,000 from $27,318,000. For the three months ended December 31, 2010, net interest income before the provision for loan losses increased 11.6% to $10,745,000 compared to $9,627,000 for the same period in 2009. The increase in net interest income for the three months resulted from a 2.5% increase in total interest income to $16,462,000 from $16,062,000 and a 11.2% decrease in total interest expense to $5,717,000 from $6,435,000.
The increase in total interest income for the three and twelve months ended December 31, 2010 resulted primarily from an increase in average earning assets offset by a decrease in interest rates on mortgage and consumer loans and available for sale investment securities compared to the same period in 2009. Average earning assets for the three and twelve month periods ended December 31, 2010 increased $104,376,000 and $87,786,000, respectively, compared to the same periods in 2009 due primarily to growth in commercial loans, available for sale investment securities and federal funds sold.
The reduction in total interest expense for the three and twelve months ended December 31, 2010 resulted primarily from lower interest rates compared to the same periods in 2009. Average interest-bearing liabilities for the three and twelve months ended December 31, 2010 increased $84,015,000 and $80,399,000, respectively, compared to the same periods in 2009. The increases in interest-bearing liabilities are due primarily to an increase in average interest-bearing deposits for the three and twelve months ended December 31, 2010 of $109,623,000 and $119,445,000, respectively, offset by a net decrease in average borrowings for the three and twelve months ended December 31, 2010 of $25,608,000 and $39,046,000, respectively, compared to the same periods in 2009.
For the twelve months ended December 31, 2010, the net interest margin on a fully taxable equivalent basis was 3.44% as compared to 3.22% for the same period in 2009. For the three months ended December 31, 2010, the net interest margin on a fully taxable equivalent basis was 3.43% as compared to 3.37% for the same period in 2009. The increase in net interest margin for the comparative three and twelve month periods ended December 31, 2010 was due mainly to lower cost of funds compared to the same periods in 2009.
Provision for Non-Covered Loans:
The provision for loan losses for the twelve months ended December 31, 2010 was $10,210,000 compared to $8,572,000 for the same period in 2009. The provision for loan losses for the three months ended December 31, 2010 was $2,050,000 compared to $2,047,000 for the same period in 2009. As of December 31, 2010, the allowance for loan losses was $14,790,000 compared to $11,449,000 as of December 31, 2009, an increase of 29.2%. The increase in the provision is due primarily to economic conditions and the result of management's evaluation and classification of the credit quality of the loan portfolio utilizing a qualitative and quantitative internal loan review process. At December 31, 2010, total non-performing loans were $27,107,000 or 2.8% of total loans compared to $26,951,000 or 3.0% of total loans at December 31, 2009. Management considers the current allowance for loan losses adequate as of December 31, 2010.
Covered Loans:
The covered loans acquired from Allegiance are shown as a separate line item of the consolidated balance sheet and are not included in the consolidated net loan totals. Covered loans are also not included in any of the reported credit quality metrics, as they are accounted for separately per generally accepted accounting principle ("GAAP") requirements. At December 31, 2010, total non-performing covered loans were $4,408,000 or 6.6% of total covered loans.
Non-Interest Income
Total non-interest income for the twelve months ended December 31, 2010 increased 18.3% to $20,617,000 compared to $17,431,000 for the same period in 2009. Total non-interest income for the three months ended December 31, 2010 increased 7.8% to $4,774,000 compared to $4,429,000 for the same period in 2009.
For the twelve months ended December 31, 2010, customer service fees decreased to $2,046,000 from $2,443,000, or 16.3%, for the same period in 2009. For the three months ended December 31, 2010, customer service fees decreased to $436,000 from $589,000, or 26.0%, for the same period in 2009. The decrease for the comparative three and twelve month periods is due primarily to a decrease in non-sufficient funds charges.
For the twelve months ended December 31, 2010, revenue from mortgage banking activities decreased to $1,082,000 from $1,255,000, or 13.8%, for the same period in 2009. For the three months ended December 31, 2010, revenue from mortgage banking activities increased to $451,000 from $292,000, or 54.5%, for the same period in 2009. The comparatives for the three and twelve month periods reflect volume fluctuations of loans sold into the secondary mortgage market. The Company operates its mortgage banking activities through VIST Mortgage, a division of VIST Bank.
For the twelve months ended December 31, 2010, revenue from commissions and fees from insurance sales decreased 2.8% to $11,915,000 compared to $12,254,000 for the same period in 2009. For the three months ended December 31, 2010, revenue from commissions and fees from insurance sales decreased 9.2% to $2,723,000 compared to $3,000,000 for the same period in 2009. The decrease for the comparative three and twelve month periods is mainly attributed to a decrease in contingency income on insurance products sold through VIST Insurance, LLC, a wholly owned subsidiary of the Company.
For the twelve months ended December 31, 2010, other income increased to $2,672,000 from $565,000 for the same period in 2009. For the three months ended December 31, 2010, other income increased to $287,000 from ($8,000) for the same period in 2009. The increase in other income for the comparative twelve month period is due primarily to a $1,875,000 gain recognized on the sale of a 25% equity interest in First HSA, LLC related to the transfer of approximately $89,000,000 of Health Savings Account ("HSA") deposits in the second quarter of 2010 and due to a $272,000 premium paid to the Company resulting from a counterparty exercising a call option to terminate an interest rate swap.
For the twelve months ended December 31, 2010, net realized gains on sales of available for sale securities were $691,000 compared to net realized gains on sales of available for sale securities of $344,000 for the same period in 2009. For the three months ended December 31, 2010, net realized gains on sales of available for sale securities were $226,000 compared to net realized losses on sales of available for sale securities of $7,000 for the same period in 2009. The net securities gains are primarily from the planned sale of existing available for sale investment securities and include $122,000 of net losses on the sale of available for sale investment securities related to the Allegiance acquisition.
For the twelve months ended December 31, 2010, net credit impairment losses recognized in earnings resulting from other-than-temporary impairment ("OTTI") losses on investment securities were $850,000 compared to net credit impairment losses recognized in earnings resulting from OTTI losses on investment securities of $2,468,000 for the same period in 2009. For the three month period ended December 31, 2010, net credit impairment losses recognized in earnings resulting from OTTI losses on investment securities were $79,000 compared to net credit impairment losses recognized in earnings resulting from OTTI losses on investment securities of $150,000 for the same period in 2009. The net credit impairment losses relate to OTTI charges for estimated credit losses on available for sale and held to maturity pooled trust preferred securities. For the three and twelve months ended December 31, 2010, the OTTI losses recognized on available for sale and held to maturity pooled trust preferred securities resulted primarily from changes in the underlying cash flow assumptions used in determining credit losses due to provisions relating to such securities included in the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Non-Interest Expense
Total non-interest expense for the twelve months ended December 31, 2010 increased 4.2% to $47,632,000 compared to $45,703,000 for the same period in 2009. Total non-interest expense for the three months ended December 31, 2010 decreased 0.2% to $12,014,000 compared to $12,034,000 for the same period in 2009.
Salaries and benefits were $21,979,000 for the twelve months ended December 31, 2010, compared to $22,134,000 for the same period in 2009. Salaries and benefits were $5,557,000 for the three months ended December 31, 2010, compared to $5,318,000 for the same period in 2009. The decrease in salaries and benefits for the comparative twelve month period is due primarily to a decrease in employer 401(k) matching contributions and commissions paid offset by an increase in base salaries. The increase in salaries and benefits for the comparative three month period is due primarily to an increase in employee medical insurance costs and the addition of a Chief Information Officer. Total commissions paid for the twelve months ended December 31, 2010 and 2009 were $1,120,000 and $1,409,000, respectively. Total commissions paid for the three months ended December 31, 2010 and 2009 were $313,000 and $329,000, respectively.
For the twelve months ended December 31, 2010, occupancy expense increased to $4,415,000 from $4,160,000, or 6.1%, for the same period in 2009. For the three months ended December 31, 2010, occupancy expense increased to $1,141,000 from $1,086,000, or 5.1%, for the same period in 2009. The increase for the comparative three and twelve month periods is due primarily to an increase in building lease expense.
For the twelve months ended December 31, 2010, professional services expense increased to $3,093,000 from $2,480,000, or 24.7%, for the same period in 2009. For the three months ended December 31, 2010, professional services expense increased to $989,000 from $561,000, or 76.3%, for the same period in 2009. The increase for the comparative three and twelve month periods is due primarily to an increase in accounting fees for accounting related services and consulting fees associated with various corporate projects. For the three and twelve months ended December 31, 2010, professional services expense included $150,000 of investment banking fees related to the Allegiance acquisition.
For the twelve months ended December 31, 2010, FDIC deposit and other insurance expense decreased to $2,128,000 from $2,479,000, or 14.2%, for the same period in 2009. For the three months ended December 31, 2010, FDIC deposit and other insurance expense decreased to $460,000 from $565,000, or 18.6%, for the same period in 2009. The decrease in FDIC deposit and other insurance expense for the comparative twelve month period is due primarily to a $580,000 special industry-wide FDIC deposit insurance premium assessed in 2009. The decrease in FDIC deposit and other insurance expense for the comparative three month period is due primarily to the sale of a equity interest in HSA deposits in the second quarter of 2010.
For the twelve months ended December 31, 2010, other real estate expense ("OREO") increased to $4,245,000 from $2,562,000, or 65.7%, for the same period in 2009. For the three months ended December 31, 2010, OREO expense decreased to $982,000 from $1,587,000, or 38.1%, for the same period in 2009. OREO expense for the comparative three and twelve month period reflects costs associated with adjusting foreclosed properties to fair value after these assets have been classified as OREO, as well as other costs to operate and maintain OREO property during the holding period.
Income Tax Expense
Income tax benefit for the twelve months ended December 31, 2010 was $465,000, a 77.1% decrease as compared to an income tax benefit of $2,029,000 for the same period in 2009. Income tax expense for the three months ended December 31, 2010 was $108,000, a 123.8% increase as compared to an income tax benefit of $454,000 for the same period in 2009. The overall increase in income tax expense for the comparative three and twelve month period is due primarily to an increase in pre-tax income. Included in income tax expense for the three and twelve months ended December 31, 2010 and 2009 is a federal tax benefit from a $5,000,000 investment in an affordable housing, corporate tax credit limited partnership.
Earnings Per Share
Diluted earnings per common share for the twelve months ended December 31, 2010 were $0.37 on average shares outstanding of 6,317,785 compared to diluted (loss) per common share of ($0.18) on average shares outstanding of 5,780,541 for the twelve months ended December 31, 2009. Diluted earnings per common share for the three months ended December 31, 2010 were $0.14 on average shares outstanding of 6,558,559 compared to diluted (loss) per common share of ($0.01) on average shares outstanding of 5,800,003 for the three months ended December 31, 2009. The increase in diluted earnings per share for the comparative three and twelve month periods is due primarily to an increase in net income available to common shareholders.
Assets, Liabilities and Equity
Total assets as of December 31, 2010 increased $116,293,000, or 8.9%, to $1,425,012,000 compared to $1,308,719,000 at December 31, 2009. Total gross loans as of December 31, 2010 increased $43,399,000 or 4.8%, to $954,363,000 compared to $910,964,000 at December 31, 2009. At December 31, 2010, covered loans attributable to the Allegiance acquisition were $66,770,000. Total deposits increased $128,382,000, or 12.6%, to $1,149,280,000 compared to $1,020,898,000 at December 31, 2009. A majority of the increase in deposits is due primarily to the deposits assumed in the Allegiance acquisition as well as growth in NOW, MMDA and Savings deposits. Total borrowings as of December 31, 2010, decreased $19,574,000, or 12.6%, to $135,280,000 compared to $154,854,000 at December 31, 2009.
Shareholders' equity as of December 31, 2010 increased $7,019,000, or 5.6%, to $132,447,000 compared to $125,428,000 at December 31, 2009. In the second quarter of 2010, the Company completed the issuance of approximately $4.8 million in common stock, net of offering costs. Also included in shareholders' equity is an unrealized loss position on available for sale and held to maturity securities, net of taxes, as of December 31, 2010, of $4,387,000 compared to an unrealized loss position on available for sale securities, net of taxes, of $4,512,000 at December 31, 2009.
Quarterly Shareholder and Investor Conference Call
VIST Financial will host a quarterly shareholder and investor conference call on Wednesday, January 26, 2011 at 8:30 a.m. EST. Interested parties can join the conference call and ask questions by dialing 877.317.6789 or listening through the computer by clicking on the following link:
http://www.talkpoint.com/viewer/starthere.asp?Pres=133961
The conference call can also be accessed through a link located under the Investor Relations page within VIST Financial Corp's website: http://www.VISTfc.com.
To replay the conference call, dial 1-877-344-7529 which will be available after 11:00 AM ET on January 26, 2011. The conference call will be archived for 90 days and will be available at the link above and on the Company's Investor Relations webpage.
VIST Financial Corp. is diversified financial services company headquartered in Wyomissing, PA, offering banking, insurance, investments, wealth management, and title insurance services throughout Berks, Southern Schuylkill, Montgomery, Delaware, Philadelphia and Lancaster Counties.
This release may contain forward-looking statements with respect to the Company's beliefs, plans, objectives, goals, expectations, anticipations, estimates, and intentions that are subject to significant risks and uncertainties, and are subject to change based on various factors, some of which are beyond the Company's control. The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company.
VIST FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED SELECTED FINANCIAL DATA
(Dollar amounts in thousands, except share data)
December 31, December 31,
2010 2009
(unaudited)
-----------
Assets
Federal funds sold $1,500 $8,475
Investment securities and
interest bearing cash 282,649 271,475
Federal Home Loan Bank stock 7,099 5,715
Mortgage loans held for sale 3,695 1,962
Loans:
Commercial loans 787,169 731,256
Consumer loans 116,757 132,054
Mortgage loans 50,437 47,654
------ ------
Total loans $954,363 $910,964
-------- --------
Covered loans $66,770 $-
------- ---
Earning assets $1,316,076 $1,198,591
========== ==========
Total assets $1,425,012 $1,308,719
========== ==========
Liabilities and shareholders'
equity
Deposits:
Non-interest bearing deposits $122,450 $102,302
NOW, money market and savings 529,014 458,987
Time deposits 497,816 459,609
------- -------
Total deposits $1,149,280 $1,020,898
---------- ----------
Borrowings:
Securities sold under agreements
to repurchase $106,843 $115,196
Long-term debt 10,000 20,000
Junior subordinated debt, at fair
value 18,437 19,658
------ ------
Total borrowings $135,280 $154,854
-------- --------
Total liabilities $1,292,565 $1,183,291
---------- ----------
Shareholders' equity $132,447 $125,428
-------- --------
Total liabilities and
shareholders' equity $1,425,012 $1,308,719
========== ==========
Actual common shares outstanding 6,535,789 5,808,690
Book value per common share $16.31 $17.22
Tangible book value per common
share $9.33 $9.62
VIST FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED SELECTED FINANCIAL DATA
(Dollar amounts in thousands, except share data)
Asset Quality Data
As Of and For The Period Ended
------------------------------
Twelve Months Nine Months Six Months
December 31, September 30, June 30,
2010 2010 2010
NON-COVERED
LOANS AND OREO: (unaudited) (unaudited) (unaudited)
---------------- ----------- ----------- -----------
Non-accrual
loans $26,513 $25,938 $22,204
Loans past due
90 days or more
still accruing 594 196 294
--- --- ---
Total non-
performing
loans 27,107 26,134 22,498
Other real
estate owned 5,303 3,531 5,148
----- ----- -----
Total non-
performing
assets $32,410 $29,665 $27,646
======= ======= =======
Renegotiated
troubled debt $10,772 $12,975 $6,333
Loans
outstanding at
end of period $954,363 $927,579 $695,584
Allowance for
loan losses 14,790 14,418 12,825
Net charge-offs
to average
loans
(annualized) 0.75% 0.77% 0.72%
Allowance for
loan losses as
a percent of
total loans 1.55% 1.55% 1.43%
Allowance for
loan losses as
a percent of
total non-
performing
loans 54.56% 55.17% 57.02%
Net charge-offs 6,849 5,191 3,234
COVERED LOANS
AND OREO:
-------------
Non-accrual
loans $4,408 n/a n/a
Other real
estate owned 247 n/a n/a
Loans
outstanding at
end of period 66,770 n/a n/a
Asset Quality Data
As Of and For The Period Ended
------------------------------
Three Months Twelve Months
March 31, December 31,
2010 2009
NON-COVERED LOANS AND OREO: (unaudited)
--------------------------- -----------
Non-accrual loans $23,635 $25,140
Loans past due 90 days or
more still accruing 204 1,811
--- -----
Total non-performing loans 23,839 26,951
Other real estate owned 7,441 5,221
----- -----
Total non-performing assets $31,280 $32,172
======= =======
Renegotiated troubled debt $6,150 $6,245
Loans outstanding at end of
period $904,762 $910,964
Allowance for loan losses 12,770 11,449
Net charge-offs to average
loans (annualized) 0.56% 0.58%
Allowance for loan losses as
a percent of total loans 1.41% 1.26%
Allowance for loan losses as
a percent of total non-
performing loans 53.58% 42.49%
Net charge-offs 1,279 5,247
COVERED LOANS AND OREO:
-----------------------
Non-accrual loans n/a n/a
Other real estate owned n/a n/a
Loans outstanding at end of
period n/a n/a
VIST FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED SELECTED FINANCIAL DATA
(Dollar amounts in thousands)
Average Balances
For the Three Months Ended
(unaudited)
-----------
December 31, December 31,
2010 2009
---- ----
Assets
Federal funds sold $33,139 $18,363
Investment securities and
interest bearing cash 282,446 252,497
Federal Home Loan Bank stock 6,279 5,715
Mortgage loans held for sale 4,729 2,553
Loans:
Commercial loans 770,692 733,606
Consumer loans 119,006 134,039
Mortgage loans 51,818 47,364
------ ------
Total loans $941,516 $915,009
======== ========
Covered loans $30,968 $-
Interest-earning assets $1,261,830 $1,188,422
Goodwill and intangible assets 45,161 44,249
Total assets $1,405,620 $1,292,334
========== ==========
Liabilities and shareholders'
equity
Deposits:
Non-interest bearing deposits $119,310 $107,159
Interest bearing deposits:
NOW, money market and savings 518,621 442,027
Time deposits 482,542 449,513
------- -------
Total Interest-Bearing Deposits 1,001,163 891,540
--------- -------
Total deposits $1,120,473 $998,699
========== ========
Short term borrowings $- $79
Securities sold under agreements
to repurchase 108,684 118,740
Long-term debt 13,043 27,011
Junior subordinated debt 18,017 19,522
Interest-bearing liabilities 1,140,907 1,056,892
--------- ---------
Shareholders' equity $135,558 $119,470
======== ========
Average Balances
For the Twelve Months
Ended
(unaudited)
-----------
December 31, December 31,
2010 2009
---- ----
Assets
Federal funds sold $28,128 $11,701
Investment securities and
interest bearing cash 289,767 242,834
Federal Home Loan Bank stock 5,857 5,715
Mortgage loans held for sale 2,613 3,507
Loans:
Commercial loans 738,104 711,267
Consumer loans 124,496 138,381
Mortgage loans 50,512 45,950
------ ------
Total loans $913,112 $895,598
======== ========
Covered loans $7,806 $-
Interest-earning assets $1,233,620 $1,153,640
Goodwill and intangible assets 44,410 44,309
Total assets $1,356,530 $1,258,015
========== ==========
Liabilities and shareholders'
equity
Deposits:
Non-interest bearing deposits $111,791 $107,629
Interest bearing deposits:
NOW, money market and savings 506,458 379,226
Time deposits 452,587 460,374
------- -------
Total Interest-Bearing Deposits 959,045 839,600
------- -------
Total deposits $1,070,836 $947,229
========== ========
Short term borrowings $3,650 $2,694
Securities sold under agreements
to repurchase 111,265 121,046
Long-term debt 11,041 40,672
Junior subordinated debt 19,166 19,756
Interest-bearing liabilities 1,104,167 1,023,768
--------- ---------
Shareholders' equity $131,973 $118,055
======== ========
VIST FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED SELECTED FINANCIAL DATA
(Dollar amounts in thousands, except per share data)
For the Three Months Ended
(unaudited)
-----------
December 31, December 31,
2010 2009
---- ----
Interest income $16,462 $16,062
Interest expense 5,717 6,435
----- -----
Net interest income 10,745 9,627
Provision for loan losses 2,050 2,047
----- -----
Net Interest Income after
provision for loan losses 8,695 7,580
----- -----
Customer service fees 436 589
Mortgage banking activities 451 292
Commissions and fees from
insurance sales 2,723 3,000
Brokerage and investment advisory
commissions and fees 172 120
Earnings on investment in life
insurance 121 111
Other commissions and fees 437 482
Other income (loss) 287 (8)
Net realized gains (losses) on
sales of securities 226 (7)
Total other-than-temporary
impairment losses on investments (86) (570)
Portion of non-credit impairment
loss recognized in other
comprehensive loss 7 420
--- ---
Net credit impairment loss
recognized in earnings (79) (150)
Total non-interest income 4,774 4,429
----- -----
Salaries and employee benefits 5,557 5,318
Occupancy expense 1,141 1,086
Furniture and equipment expense 618 650
Other operating expense 4,698 4,980
----- -----
Total non-interest expense 12,014 12,034
------ ------
Income (loss) before income taxes 1,455 (25)
Income tax expense (benefit) 108 (454)
--- ----
Net income 1,347 429
Preferred stock dividends and
discount accretion (419) (412)
---- ----
Net income (loss) available to
common shareholders $928 $17
==== ===
Per Common Share Data:
Basic average shares outstanding 6,521,906 5,800,003
Diluted average shares
outstanding 6,558,559 5,800,003
Basic earnings (loss) per common
share $0.14 $(0.01)
Diluted earnings (loss) per
common share 0.14 (0.01)
Cash dividends per common share 0.05 0.05
Profitability Ratios:
Return on average assets 0.38% 0.13%
Return on average shareholders'
equity 3.94% 1.42%
Return on average tangible equity
(equity less goodwill and
intangible assets) 5.91% 2.26%
Average Equity to Average Assets 9.64% 9.24%
Net interest margin (fully
taxable equivalent) 3.43% 3.37%
Effective tax rate 7.42% 1816.00%
For the Twelve Months Ended
(unaudited)
-----------
December 31, December 31,
2010 2009
---- ----
Interest income $64,087 $62,740
Interest expense 23,343 27,318
------ ------
Net interest income 40,744 35,422
Provision for loan losses 10,210 8,572
------ -----
Net Interest Income after
provision for loan losses 30,534 26,850
------ ------
Customer service fees 2,046 2,443
Mortgage banking activities 1,082 1,255
Commissions and fees from
insurance sales 11,915 12,254
Brokerage and investment advisory
commissions and fees 737 714
Earnings on investment in life
insurance 423 391
Other commissions and fees 1,901 1,933
Other income (loss) 2,672 565
Net realized gains (losses) on
sales of securities 691 344
Total other-than-temporary
impairment losses on investments (869) (5,569)
Portion of non-credit impairment
loss recognized in other
comprehensive loss 19 3,101
--- -----
Net credit impairment loss
recognized in earnings (850) (2,468)
Total non-interest income 20,617 17,431
------ ------
Salaries and employee benefits 21,979 22,134
Occupancy expense 4,415 4,160
Furniture and equipment expense 2,559 2,495
Other operating expense 18,679 16,914
------ ------
Total non-interest expense 47,632 45,703
------ ------
Income (loss) before income taxes 3,519 (1,422)
Income tax expense (benefit) (465) (2,029)
---- ------
Net income 3,984 607
Preferred stock dividends and
discount accretion (1,678) (1,649)
------ ------
Net income (loss) available to
common shareholders $2,306 $(1,042)
====== =======
Per Common Share Data:
Basic average shares outstanding 6,275,341 5,780,541
Diluted average shares
outstanding 6,317,785 5,780,541
Basic earnings (loss) per common
share $0.37 $(0.18)
Diluted earnings (loss) per
common share 0.37 (0.18)
Cash dividends per common share 0.20 0.30
Profitability Ratios:
Return on average assets 0.29% 0.05%
Return on average shareholders'
equity 3.02% 0.51%
Return on average tangible equity
(equity less goodwill and
intangible assets) 4.55% 0.82%
Average Equity to Average Assets 9.73% 9.38%
Net interest margin (fully
taxable equivalent) 3.44% 3.22%
Effective tax rate -13.21% 142.69%
VIST FINANCIAL CORP. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands, except share data)
December December
31, 31,
2010 2009
---- ----
Assets
Cash and due from banks $15,443 $18,487
Federal funds sold 1,500 8,475
Interest-bearing deposits in
banks 872 410
--- ---
Total cash and cash equivalents 17,815 27,372
Mortgage loans held for sale 3,695 1,962
Securities available for sale 279,755 268,030
Securities held to maturity 2,022 3,035
Federal Home Loan Bank stock 7,099 5,715
Loans, net of allowance for loan
losses
12/2010 -$14,790; 12/2009 -
$11,449 939,573 899,515
Covered loans 66,770 -
Premises and equipment, net 5,639 6,114
Other real estate owned 5,303 5,221
Covered other real estate owned 247 -
Identifiable intangible assets 3,795 4,186
Goodwill 41,858 39,982
Bank owned life insurance 19,373 18,950
FDIC prepaid deposit insurance 3,985 5,712
FDIC indemnification asset 7,003 -
Other assets 21,080 22,925
------ ------
Total assets $1,425,012 $1,308,719
========== ==========
Liabilities and Shareholders'
Equity
Liabilities
Deposits:
Non-interest bearing $122,450 $102,302
Interest bearing 1,026,830 918,596
--------- -------
Total deposits 1,149,280 1,020,898
Securities sold under agreements
to repurchase 106,843 115,196
Long-term debt 10,000 20,000
Junior subordinated debt, at fair
value 18,437 19,658
Other liabilities 8,005 7,539
Total liabilities 1,292,565 1,183,291
--------- ---------
Shareholders' Equity
Preferred stock: $0.01 par value;
authorized 1,000,000 shares;
$1,000 liquidation
preference per share; 25,000
shares of Series A 5%
(increasing to 9% in 2014)
cumulative
preferred stock issued and
outstanding; Less: discount of
$1,587 at December 31, 2010
and $1,908 at December 31, 2009 23,520 23,092
Common stock, $5.00 par value;
authorized 20,000,000 shares;
issued:
6,546,273 shares at December 31,
2010 and 5,819,174 shares at
December 31, 2009 32,732 29,096
Stock Warrants 2,307 2,307
Surplus 65,506 63,744
Retained earnings 12,960 11,892
Accumulated other comprehensive
loss (4,387) (4,512)
Treasury stock: 10,484 shares at
cost (191) (191)
---- ----
Total shareholders' equity 132,447 125,428
Total liabilities and
shareholders' equity $1,425,012 $1,308,719
========== ==========
SELECTED HIGHLIGHTS
Common Stock (VIST)
Cash Dividends Declared
October 2009 $0.05
January 2010 $0.05
April 2010 $0.05
July 2010 $0.05
October 2010 $0.05
Common Stock (VIST)
Quarterly Closing Price
12/31/2009 $5.25
03/31/2010 $8.97
06/30/2010 $7.66
09/30/2010 $7.08
12/31/2010 $7.16
VIST FINANCIAL CORP. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollar amounts in thousands, except share data)
Three Months Ended Year Ended
December 31, December 31,
2010 2009 2010 2009
---- ---- ---- ----
Interest Income
Interest and fees on loans $13,662 $12,774 $51,158 $49,900
Interest on securities:
Taxable 2,388 2,939 10,920 11,453
Tax-exempt 377 326 1,646 1,253
Dividend income 20 17 59 115
Other interest income 15 6 304 19
--- --- --- ---
Total interest income 16,462 16,062 64,087 62,740
Interest Expense
Interest on deposits 3,970 4,711 16,664 19,989
Interest on short-term
borrowings - - 18 18
Interest on securities
sold under agreements to
repurchase 1,204 1,124 4,789 4,421
Interest on long-term debt 131 253 408 1,509
Interest on junior
subordinated debt 412 347 1,464 1,381
--- --- ----- -----
Total interest expense 5,717 6,435 23,343 27,318
Net interest income 10,745 9,627 40,744 35,422
Provision for loan losses 2,050 2,047 10,210 8,572
----- ----- ------ -----
Net interest income after
provision for loan losses 8,695 7,580 30,534 26,850
Other income:
Customer service fees 436 589 2,046 2,443
Mortgage banking
activities, net 451 292 1,082 1,255
Commissions and fees from
insurance sales 2,723 3,000 11,915 12,254
Broker and investment
advisory commissions and
fees 172 120 737 714
Earnings on investment in
life insurance 121 111 423 391
Other commissions and fees 437 482 1,901 1,933
Gain on sale of equity
interest - - 1,875 -
Other income (loss) 287 (8) 797 565
Net realized gains
(losses) on sales of
securities 226 (7) 691 344
Total other-than-
temporary impairment
losses on investments (86) (570) (869) (5,569)
Portion of non-credit
impairment loss
recognized
in other comprehensive
loss 7 420 19 3,101
--- --- --- -----
Net credit impairment loss
recognized in earnings (79) (150) (850) (2,468)
Total non-interest income 4,774 4,429 20,617 17,431
Other expense:
Salaries and employee
benefits 5,557 5,318 21,979 22,134
Occupancy expense 1,141 1,086 4,415 4,160
Furniture and equipment
expense 618 650 2,559 2,495
Marketing and advertising
expense 230 198 1,022 1,011
Identifiable intangible
amortization 126 133 543 647
Professional services 989 561 3,093 2,480
Outside processing expense 987 932 3,908 3,983
FDIC deposit and other
insurance expense 460 565 2,128 2,479
Other real estate owned
expense 982 1,587 4,245 2,562
Other expense 924 1,004 3,740 3,752
--- ----- ----- -----
Total non-interest expense 12,014 12,034 47,632 45,703
Income (loss) before
income taxes 1,455 (25) 3,519 (1,422)
Income tax (benefit) 108 (454) (465) (2,029)
Net income 1,347 429 3,984 607
Preferred stock dividends
and discount accretion (419) (412) (1,678) (1,649)
---- ---- ------ ------
Net income (loss)
available to common
shareholders $928 $17 $2,306 $(1,042)
==== === ====== =======
Per Common Share Data
Average shares outstanding 6,521,906 5,800,003 6,275,341 5,780,541
Basic earnings (loss) per
common share $0.14 $(0.01) $0.37 $(0.18)
Average shares outstanding
for diluted earnings per
share 6,558,559 5,800,003 6,317,785 5,780,541
Diluted earnings (loss)
per common share $0.14 $(0.01) $0.37 $(0.18)
Cash dividends declared
per common share $0.05 $0.05 $0.20 $0.30
SOURCE VIST Financial Corp.
