VIST FINANCIAL CORP. 
By WYOMISSING, Pa., July 27 /PRNewswire-FirstCall/ -- VIST Financial Corp. ("Company") (Nasdaq: VIST) reported net income for the six months ended June 30, 2010 of $3,239,000, a $3,216,000 increase over net income of $23,000 for the same period in 2009. The Company also reported net income for the three months ended June 30, 2010 of $2,526,000, a $4,034,000 increase over a net loss of $1,508,000 for the same period in 2009.
The Company also 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 August 6, 2010 payable August 13, 2010.
Commenting on the second quarter 2010, Robert D. Davis, President and Chief Executive Officer of VIST Financial Corp. said, "Consistent with the slow improvement in the regional economy served by VIST Financial, our linked quarter profitability continues to improve. Our strong second quarter results include the sale of our 25% interest in First HSA, LLC which produced a pre-tax gain of $1,875,000. Of equal importance was our ability to raise $5.2 million in new capital through the issuance of 644,000 of common stock to two institutional investors who specialize in the banking sector at a price of $8 a share. Accordingly, VIST Financial capital ratios continue to exceed all regulatory capital guidelines. This modest capital raise will also allow us to take advantage of market opportunities, anticipate new regulatory capital guidelines and provide us with a capital cushion if the economy does not continue to improve."
Davis continued, "During the second quarter of 2010, we experienced an improvement in our net interest margin; however loans outstanding decreased from both the first quarter and year end as a result of a conscious decision to exit a number of commercial loan relationships which did not meet our credit standards. We do see the opportunity to continue our historical growth levels in commercial loans in the second half of this year. Our overall asset quality metrics have continued to stabilize and measurably improve through a reduction of non-performing loans and reduced delinquencies."
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 which will continue our well-capitalized status."
Net Interest Income
For the six months ended June 30, 2010, net interest income before the provision for loan losses increased 18.4% to $19,823,000 compared to $16,749,000 for the same period in 2009. The increase in net interest income for the six months resulted from a 3.2% increase in total interest income to $31,837,000 from $30,849,000 and a 14.8% reduction in total interest expense to $12,014,000 from $14,100,000. For the three months ended June 30, 2010, net interest income before the provision for loan losses increased 22.7% to $10,146,000 compared to $8,267,000 for the same period in 2009. The increase in net interest income for the three months resulted from a 4.7% increase in total interest income to $16,033,000 from $15,313,000 and a 16.4% reduction in total interest expense to $5,887,000 from $7,046,000.
The increase in total interest income for the three and six months ended June 30, 2010 resulted primarily from an increase in average earning assets compared to the same periods in 2009. Average earning assets for the three and six month periods ended June 30, 2010 increased $100,114,000 and $92,811,000, respectively, compared to the same periods in 2009 due primarily to growth in commercial loans and available for sale investment securities.
The reduction in total interest expense for the three and six months ended June 30, 2010 resulted primarily from lower interest rates compared to the same periods in 2009. Average interest-bearing liabilities for the three and six months ended June 30, 2010 increased $98,110,000 and $97,214,000, respectively, compared to the same periods in 2009. The increases in interest-bearing liabilities are due primarily from an increase in average interest-bearing deposits for the three and six months ended June 30, 2010 of $129,777,000 and $143,049,000, respectively, offset by a net decrease in average securities sold under agreements to repurchase and average long term borrowings for the three and six months ended June 30, 2010 of $46,791,000 and $49,248,000, respectively.
The provision for loan losses for the six months ended June 30, 2010 was $4,610,000 compared to $5,125,000 for the same period in 2009. The provision for loan losses for the three months ended June 30, 2010 was $2,010,000 compared to $4,300,000 for the same period in 2009. As of June 30, 2010, the allowance for loan losses was $12,825,000 compared to $11,449,000 as of December 31, 2009, an annualized increase of 24.0%. 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 June 30, 2010, total non-performing loans were $22,498,000 or 2.5% of total loans compared to $26,951,000 or 3.0% of total loans at December 31, 2009. The $4,453,000 decrease in non-performing loans from December 31, 2009 to June 30, 2010, was due primarily to pay-downs and charge-offs of non-performing commercial real estate loans. Management considers the current allowance for loan losses adequate as of June 30, 2010.
Net interest income after the provision for loan losses for the three and six months ended June 30, 2010 was $8,136,000 and $15,213,000, respectively, as compared to $3,967,000 and $11,624,000, respectively, for the same periods in 2009.
For the six months ended June 30, 2010, the net interest margin on a fully taxable equivalent basis was 3.42% as compared to 3.12% for the same period in 2009. For the three months ended June 30, 2010, the net interest margin on a fully taxable equivalent basis was 3.43% as compared to 3.05% for the same period in 2009 and 3.40% for the first quarter of 2010. The increase in net interest margin for the comparative six and three month periods ended June 30, 2010 was due mainly to lower cost of funds compared to the same periods in 2009.
Non-Interest Income
Total non-interest income for the six months ended June 30, 2010 increased 12.6% to $11,457,000 compared to $10,176,000 for the same period in 2009. Total non-interest income for the three months ended June 30, 2010 increased 44.8% to $6,908,000 compared to $4,771,000 for the same period in 2009.
For the six months ended June 30, 2010, customer service fees decreased to $1,132,000 from $1,254,000, or 9.7%, for the same period in 2009. For the three months ended June 30, 2010, service charges on deposits decreased to $549,000 from $596,000, or 7.9%, for the same period in 2009. The decrease for the comparative six and three month periods is due primarily to a decrease in commercial account analysis fees, uncollected funds charges and non-sufficient funds charges.
For the six months ended June 30, 2010, revenue from mortgage banking activities decreased to $365,000 from $675,000, or 45.9%, for the same period in 2009. For the three months ended June 30, 2010, revenue from mortgage banking activities decreased to $231,000 from $408,000, or 43.4%, for the same period in 2009. The decrease for the comparative six and three month periods is primarily due to a decrease in the volume 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 six months ended June 30, 2010, revenue from commissions and fees from insurance sales increased 2.9% to $6,168,000 compared to $5,994,000 for the same period in 2009. For the three months ended June 30, 2010, revenue from commissions and fees from insurance sales increased 1.8% to $3,092,000 compared to $3,036,000 for the same period in 2009. The increase for the comparative six and three month periods is mainly attributed to an increase in commission income on group insurance products sold through VIST Insurance, LLC, a wholly owned subsidiary of the Company.
For the six months ended June 30, 2010, revenue from brokerage and investment advisory commissions and fee activity decreased to $286,000 from $482,000, or 40.7%, for the same period in 2009. For the three months ended June 30, 2010, revenue from brokerage and investment advisory commissions and fee activity decreased to $151,000 from $152,000, or 0.7%, for the same period in 2009. Fluctuations for the comparative six and three month periods is due primarily to the volume of investment advisory services offered through VIST Capital Management, LLC, a wholly owned subsidiary of the Company.
For the six months ended June 30, 2010, earnings on investment in life insurance increased to $191,000 from $184,000, or 3.8%, for the same period in 2009. For the three months ended June 30, 2010, earnings on investment in life insurance increased to $113,000 from $108,000, or 4.6%, for the same period in 2009. The increase for the comparative six and three month periods is due primarily to increased earnings credited on the Company's bank owned life insurance ("BOLI").
For the six months ended June 30, 2010, revenue from other commissions and fees increased to $1,062,000 from $971,000, or 9.4%, for the same period in 2009. For the three months ended June 30, 2010, revenue from other commissions and fees increased to $558,000 from $498,000, or 12.0%, for the same period in 2009. The increase for the comparative six and three month periods is due primarily to an increase in customer debit card activity through the debit card network interchange.
For the six months ended June 30, 2010, other income including gain on sale of equity interest increased to $2,116,000 from $653,000 for the same period in 2009. For the three months ended June 30, 2010, other income including gain on sale of equity interest increased to $2,073,000 from $169,000 for the same period in 2009. The increase for the comparative six and three month periods 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.
For the six months ended June 30, 2010, net realized gains on sales of available for sale securities were $286,000 compared to net realized gains on sales of available for sale securities of $285,000 for the same period in 2009. For the three months ended June 30, 2010, net realized gains on sales of available for sale securities were $194,000 compared to net realized gains on sales of available for sale securities of $126,000 for the same period in 2009. The net securities gains are primarily from the planned sale of existing available for sale investment securities.
For the six months ended June 30, 2010, net credit impairment losses recognized in earnings resulting from other-than-temporary impairment ("OTTI") losses on investment securities were $149,000 compared to net credit impairment losses recognized in earnings resulting from OTTI losses on investment securities of $322,000 for the same period in 2009. For the three month period ended June 30, 2010, net credit impairment losses recognized in earnings resulting from OTTI losses on investment securities were $53,000 compared to net credit impairment losses recognized in earnings resulting from OTTI losses on investment securities of $322,000 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.
Non-Interest Expense
Total non-interest expense for the six months ended June 30, 2010 increased 0.5% to $22,955,000 compared to $22,846,000 for the same period in 2009. Total non-interest expense for the three months ended June 30, 2010 increased 2.6% to $11,864,000 compared to $11,567,000 for the same period in 2009.
Salaries and benefits were $10,838,000 for the six months ended June 30, 2010, a decrease of 5.3% compared to $11,442,000 for the same period in 2009. Salaries and benefits were $5,419,000 for the three months ended June 30, 2010, a decrease of 5.8% compared to $5,754,000 for the same period in 2009. The decrease in salaries and benefits for the comparative six and three month periods is due primarily to a decrease in employer 401(k) matching contributions and commissions paid. Included in salaries and benefits for the six months ended June 30, 2010 and 2009 were stock-based compensation costs of $76,000 and $77,000, respectively. Included in salaries and benefits for the three months ended June 30, 2010 and 2009 were stock-based compensation costs of $39,000 and $56,000, respectively. Total commissions paid for the six months ended June 30, 2010 and 2009 were $496,000 and $736,000, respectively. Total commissions paid for the three months ended June 30, 2010 and 2009 were $268,000 and $353,000, respectively.
For the six months ended June 30, 2010, occupancy expense and furniture and equipment expense increased to $3,503,000 from $3,190,000, or 9.8%, for the same period in 2009. For the three months ended June 30, 2010, occupancy expense and furniture and equipment expense increased to $1,731,000 from $1, 515,000, or 14.3%, for the same period in 2009. The increase for the comparative six and three month periods is due primarily to an increase in building lease expense, equipment maintenance and software maintenance expense.
For the six months ended June 30, 2010, marketing and advertising expense decreased to $507,000 from $605,000, or 16.2%, for the same period in 2009. For the three months ended June 30, 2010, advertising and marketing expense decreased to $261,000 from $335,000, or 22.1%, for the same period in 2009. The decrease for the comparative six and three month periods is due primarily to a reduction in marketing costs associated with market research, media space, media production and special events.
For the six months ended June 30, 2010, professional services expense decreased to $1,354,000 from $1,374,000, or 1.5%, for the same period in 2009. For the three months ended June 30, 2010, professional services expense increased to $745,000 from $482,000, or 54.6%, for the same period in 2009. The increase for the comparative three month periods is due primarily to an increase in accounting fees for accounting and accounting related services and consulting fees associated with various corporate projects.
For the six months ended June 30, 2010, outside processing expense decreased to $1,885,000 from $2,037,000, or 7.5%, for the same period in 2009. For the three months ended June 30, 2010, outside processing expense decreased to $854,000 from $1,086,000, or 21.4%, for the same period in 2009. The decrease for the comparative six and three month periods is due primarily to a decrease in costs incurred for computer services and network fees.
For the six months ended June 30, 2010, FDIC deposit and other insurance expense decreased to $1,056,000 from $1,428,000, or 26.1%, for the same period in 2009. For the three months ended June 30, 2010, insurance expense decreased to $524,000 from $984,000, or 46.7%, for the same period in 2009. The decrease in FDIC deposit and other insurance expense for the comparative six and three month periods is due primarily to a $580,000 special industry-wide FDIC deposit insurance premium assessed in 2009.
For the six months ended June 30, 2010, other real estate owned ("OREO") expense increased to $1,692,000 from $618,000, or 173.8%, for the same period in 2009. For the three months ended June 30, 2010, other real estate owned expense increased to $1,195,000 from $292,000, or 309.2%, for the same period in 2009. The increase in other real estate owned expense for the comparative six and three month periods is due primarily to an increase in 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 expense for the six months ended June 30, 2010 was $476,000, a 144.5% increase as compared to an income tax benefit of $1,069,000 for the six months ended June 30, 2009. Income tax expense for the three months ended June 30, 2010 was $654,000, a 149.5% increase as compared to an income tax benefit of $1,321,000 for the three months ended June 30, 2009. The increase for the comparative six and three month periods is due primarily to an increase in net income before income taxes. Included in income tax expense for the six and three months ended June 30, 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 six months ended June 30, 2010 were $0.40 on average shares outstanding of 6,076,656, a 385.7% increase as compared to diluted (loss) per common share of ($0.14) on average shares outstanding of 5,763,648 for the six months ended June 30, 2009. Diluted earnings per common share for the three months ended June 30, 2010 were $0.34 on average shares outstanding of 6,268,026, a 203.0% increase as compared to diluted (loss) per common share of ($0.33) on average shares outstanding of 5,791,023 for the three months ended June 30, 2009. The increase in diluted earnings per share for the comparative six and three month periods is due primarily to an increase in net income available to common shareholders.
Assets, Liabilities and Equity
Total assets as of June 30, 2010 decreased $20,115,000, or 3.1% annualized, to $1,288,604,000 compared to $1,308,719,000 at December 31, 2009. Total gross loans as of June 30, 2010 decreased $15,380,000, or 3.4% annualized, to $895,584,000 compared to $910,964,000 at December 31, 2009. Total deposits decreased $15,326,000, or 3.0% annualized, to $1,005,572,000 compared to $1,020,898,000 at December 31, 2009 due primarily to the sale of a 25% equity interest in First HSA, LLC and the related transfer of approximately $89,000,000 of HSA deposits in the second quarter of 2010. Total borrowings as of June 30, 2010, decreased $15,162,000, or 19.6% annualized, to $139,692,000 compared to $154,854,000 at December 31, 2009.
Shareholders' equity as of June 30, 2010 increased $9,262,000, or 14.8% annualized, to $134,690,000 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 June 30, 2010, of $2,490,000 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, July 28, 2010 at 8:30 a.m. EDT. Interested parties can join the conference call and ask questions by dialing 877.303.1593 or listening through the computer by clicking on the following link:
http://tinyurl.com/2a8jbcu
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 .
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
June 30, 31,
2010 2009
(unaudited)
-----------
Assets
Federal funds sold $7,385 $8,475
Investment securities and
interest bearing cash 263,664 271,475
Federal Home Loan Bank stock 5,715 5,715
Mortgage loans held for sale 3,109 1,962
Loans:
Commercial loans 719,295 731,256
Consumer loans 124,027 132,054
Mortgage loans 52,262 47,654
------ ------
Total loans $895,584 $910,964
-------- --------
Earning assets $1,175,457 $1,198,591
========== ==========
Total assets $1,288,604 $1,308,719
========== ==========
Liabilities and shareholders'
equity
Deposits:
Non-interest bearing deposits $114,362 $102,302
NOW, money market and savings 463,236 458,987
Time deposits 427,974 459,609
------- -------
Total deposits $1,005,572 $1,020,898
---------- ----------
Borrowings:
Securities sold under agreements
to repurchase $110,384 $115,196
Long-term debt 10,000 20,000
Junior subordinated debt 19,308 19,658
------ ------
Total borrowings $139,692 $154,854
-------- --------
Total Liabilities $1,153,914 $1,183,291
---------- ----------
Shareholders' equity $134,690 $125,428
-------- --------
Total liabilities and
shareholders' equity $1,288,604 $1,308,719
========== ==========
Actual common shares outstanding 6,506,640 5,808,690
Book value per common share $16.76 $17.22
Tangible book value per common
share $9.94 $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
------------------------
Six Months Twelve Months
June 30, December 31,
2010 2009
(unaudited)
-----------
Non-accrual loans $22,204 $25,140
Loans past due 90 days or more still
accruing 294 1,811
--- -----
Total non-performing loans 22,498 26,951
Other real estate owned 5,148 5,221
----- -----
Total non-performing assets $27,646 $32,172
======= =======
Renegotiated troubled debt $6,333 $6,245
Loans outstanding at end of period $895,584 $910,964
Allowance for loan losses 12,825 11,449
Net charge-offs to average loans
(annualized) 0.72% 0.58%
Allowance for loan losses as a percent of
total loans 1.43% 1.26%
Allowance for loan losses as a percent of
total non-performing loans 57.01% 42.49%
VIST FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED SELECTED FINANCIAL DATA
(Dollar amounts in thousands)
Average Balances Average Balances
For the Three Months For the Six Months
Ended Ended
(unaudited) (unaudited)
----------- -----------
June 30, June 30, June 30, June 30,
2010 2009 2010 2009
---- ---- ---- ----
Assets
Federal funds
sold $6,772 $13,298 $17,825 $9,981
Investment
securities
and 343,947 240,239 306,701 234,533
interest
bearing cash
Federal Home
Loan Bank
stock 5,715 5,715 5,715 5,715
Mortgage loans
held for sale 2,064 5,643 1,515 4,446
Loans:
Commercial
loans 716,289 699,919 724,631 699,717
Consumer loans 126,218 141,335 128,422 140,421
Mortgage loans 49,237 43,979 48,529 45,714
------ ------ ------ ------
Total loans $891,744 $885,233 $901,582 $885,852
======== ======== ======== ========
Interest-
earning
assets $1,244,527 $1,144,413 $1,227,623 $1,134,812
Goodwill and
intangible
assets 43,997 44,329 44,056 44,414
Total assets $1,364,309 $1,256,512 $1,346,607 $1,245,992
========== ========== ========== ==========
Liabilities
and
shareholders'
equity
Deposits:
Non-interest
bearing
deposits $110,944 $106,362 $106,673 $105,905
Interest
bearing
deposits:
NOW, money
market and
savings 535,200 351,272 516,099 335,782
Time deposits 425,298 479,449 436,993 474,261
------- ------- ------- -------
Total
Interest-
Bearing
Deposits 960,498 830,721 953,092 810,043
------- ------- ------- -------
Total deposits $1,071,442 $937,083 $1,059,765 $915,948
========== ======== ========== ========
Short term
borrowings $14,620 $253 $7,351 $5,057
Securities
sold under 110,137 125,003 112,966 122,268
agreements to
repurchase
Long-term debt 10,000 41,925 10,552 50,498
Junior
subordinated
debt 19,710 18,953 19,684 18,565
Interest-
bearing
liabilities 1,114,965 1,016,855 1,103,645 1,006,431
Shareholders'
equity $130,431 $125,700 $128,154 $125,051
======== ======== ======== ========
VIST FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED SELECTED FINANCIAL DATA
(Dollar amounts in thousands, except per share data)
For the Three Months Ended
(unaudited)
-----------
June 30, June 30,
2010 2009
---- ----
Interest income $16,033 $15,313
Interest expense 5,887 7,046
----- -----
Net interest income 10,146 8,267
Provision for loan losses 2,010 4,300
----- -----
Net Interest Income after
provision for loan losses 8,136 3,967
----- -----
Customer service fees 549 596
Mortgage banking activities 231 408
Commissions and fees from
insurance sales 3,092 3,036
Brokerage and investment advisory
commissions and fees 151 152
Earnings on investment in life
insurance 113 108
Other commissions and fees 558 498
Other income 2,073 169
Net realized gains on sales of
securities 194 126
Total other-than-temporary
impairment losses on investments (6) (973)
Portion of non-credit impairment
loss recognized in other
comprehensive loss (47) 651
--- ---
Net credit impairment loss
recognized in earnings (53) (322)
Total non-interest income 6,908 4,771
----- -----
Salaries and employee benefits 5,419 5,754
Occupancy expense 1,069 881
Furniture and equipment expense 662 634
Other operating expense 4,714 4,298
----- -----
Total non-interest expense 11,864 11,567
------ ------
Income (loss) before income taxes 3,180 (2,829)
Income taxes (benefit) 654 (1,321)
--- ------
Net income (loss) 2,526 (1,508)
Preferred stock dividends and
discount accretion (419) (413)
---- ----
Net income (loss) available to
common shareholders $2,107 $(1,921)
====== =======
Per Common Share Data:
Basic average shares outstanding 6,213,284 5,791,023
Diluted average shares
outstanding 6,268,026 5,791,023
Basic earnings (loss) per common
share $0.34 $(0.33)
Diluted earnings (loss) per
common share 0.34 (0.33)
Cash dividends per common share 0.05 0.10
Profitability Ratios:
Return on average assets 0.74% -0.48%
Return on average shareholders'
equity 7.77% -4.81%
Return on average tangible equity
(equity less goodwill and
intangible assets) 11.72% -7.43%
Average Equity to Average Assets 9.56% 10.00%
Net interest margin (fully
taxable equivalent) 3.43% 3.05%
Effective tax rate 20.57% 46.69%
For the Six Months Ended
(unaudited)
-----------
June 30, June 30,
2010 2009
---- ----
Interest income $31,837 $30,849
Interest expense 12,014 14,100
------ ------
Net interest income 19,823 16,749
Provision for loan losses 4,610 5,125
----- -----
Net Interest Income after
provision for loan losses 15,213 11,624
------ ------
Customer service fees 1,132 1,254
Mortgage banking activities 365 675
Commissions and fees from
insurance sales 6,168 5,994
Brokerage and investment advisory
commissions and fees 286 482
Earnings on investment in life
insurance 191 184
Other commissions and fees 1,062 971
Other income 2,116 653
Net realized gains on sales of
securities 286 285
Total other-than-temporary
impairment losses on investments (946) (973)
Portion of non-credit impairment
loss recognized in other
comprehensive loss 797 651
--- ---
Net credit impairment loss
recognized in earnings (149) (322)
Total non-interest income 11,457 10,176
------ ------
Salaries and employee benefits 10,838 11,442
Occupancy expense 2,217 1,950
Furniture and equipment expense 1,286 1,240
Other operating expense 8,614 8,214
----- -----
Total non-interest expense 22,955 22,846
------ ------
Income (loss) before income taxes 3,715 (1,046)
Income taxes (benefit) 476 (1,069)
--- ------
Net income (loss) 3,239 23
Preferred stock dividends and
discount accretion (839) (825)
---- ----
Net income (loss) available to
common shareholders $2,400 $(802)
====== =====
Per Common Share Data:
Basic average shares outstanding 6,030,134 5,763,648
Diluted average shares
outstanding 6,076,656 5,763,648
Basic earnings (loss) per common
share $0.40 $(0.14)
Diluted earnings (loss) per
common share 0.40 (0.14)
Cash dividends per common share 0.10 0.20
Profitability Ratios:
Return on average assets 0.49% 0.00%
Return on average shareholders'
equity 5.10% 0.04%
Return on average tangible equity
(equity less goodwill and
intangible assets) 7.77% 0.06%
Average Equity to Average Assets 9.52% 10.04%
Net interest margin (fully
taxable equivalent) 3.42% 3.12%
Effective tax rate 12.81% 102.20%
VIST FINANCIAL CORP. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands, except share data)
June 30, June 30,
2010 2009
---- ----
Assets
Cash and due from banks $25,357 $20,685
Fed funds sold 7,385 19,950
Interest-bearing deposits in banks 286 342
--- ---
Total cash and cash equivalents 33,028 40,977
Mortgage loans held for sale 3,109 5,888
Securities available for sale 261,292 229,107
Securities held to maturity 2,086 3,048
Federal Home Loan Bank stock 5,715 5,715
Loans, net of allowance for loan losses
6/2010 - $12,825; 6/2009 - $12,029 882,759 875,207
Premises and equipment, net 5,976 6,408
Identifiable intangible assets 4,411 4,491
Goodwill 39,999 39,732
Bank owned life insurance 19,141 18,736
FDIC prepaid insurance 4,902 -
Other assets 26,186 28,084
------ ------
Total assets $1,288,604 $1,257,393
========== ==========
Liabilities and Shareholders' Equity
Liabilities
Deposits:
Non-interest bearing $114,362 $111,231
Interest bearing 891,210 836,683
------- -------
Total deposits 1,005,572 947,914
Securities sold under agreements
to repurchase 110,384 124,875
Long-term debt 10,000 35,000
Junior subordinated debt, at fair value 19,308 18,856
Other liabilities 8,650 9,093
Total liabilities 1,153,914 1,135,738
--------- ---------
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% cumulative preferred stock
issued and outstanding; Less: discount of
$1,694 at June 30, 2010 and a
discount of $2,108 at June 30, 2009 23,306 22,892
Common stock, $5.00 par value ;
Authorized 20,000,000 shares;
6,517,124 shares issued at June 30, 2010
and
5,804,684 shares issued at June 30, 2009 32,586 29,024
Stock Warrants 2,307 2,307
Surplus 65,466 63,654
Retained earnings 13,706 12,714
Accumulated other comprehensive loss (2,490) (8,745)
Treasury stock; 10,484 shares at June 30,
2010 and
10,484 shares at June 30, 2009, at cost (191) (191)
---- ----
Total shareholders' equity 134,690 121,655
------- -------
Total liabilities and shareholders' equity $1,288,604 $1,257,393
========== ==========
SELECTED HIGHLIGHTS
Common Stock (VIST)
Cash Dividends
Declared
July 2009 $0.05
October 2009 $0.05
January 2010 $0.05
April 2010 $0.05
July 2010 $0.05
Common Stock (VIST)
Quarterly Closing
Price
06/30/2009 $6.61
09/30/2009 $5.85
12/31/2009 $5.25
03/31/2010 $8.97
06/30/2010 $7.66
VIST FINANCIAL CORP. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(Dollar amounts in thousands, except share data)
Three Months Ended Six Months Ended
June 30, June 30,
2010 2009 2010 2009
---- ---- ---- ----
Interest Income
Interest and fees on
loans $12,415 $12,261 $24,858 $24,603
Interest on securities:
Taxable 2,894 2,709 5,841 5,579
Tax-exempt 450 305 846 591
Dividend income 8 33 18 67
Other interest income 266 5 274 9
--- --- --- ---
Total interest income 16,033 15,313 31,837 30,849
Interest Expense
Interest on deposits 4,238 5,172 8,740 10,326
Interest on short-term
borrowings 18 - 18 17
Interest on securities
sold under agreements to
repurchase 1,198 1,100 2,380 2,163
Interest on long-term
debt 89 412 187 917
Interest on junior
subordinated debt 344 362 689 677
--- --- --- ---
Total interest expense 5,887 7,046 12,014 14,100
Net interest income 10,146 8,267 19,823 16,749
Provision for loan losses 2,010 4,300 4,610 5,125
----- ----- ----- -----
Net interest income after
provision for loan
losses 8,136 3,967 15,213 11,624
Other income:
Customer service fees 549 596 1,132 1,254
Mortgage banking
activities, net 231 408 365 675
Commissions and fees from
insurance sales 3,092 3,036 6,168 5,994
Broker and investment
advisory commissions and
fees 151 152 286 482
Earnings on investment in
life insurance 113 108 191 184
Other commissions and
fees 558 498 1,062 971
Gain on sale of equity
interest 1,875 - 1,875 -
Other income 198 169 241 653
Net realized gains on
sales of securities 194 126 286 285
Total other-than-
temporary impairment
losses on investments (6) (973) (946) (973)
Portion of non-credit
impairment loss
recognized
in other comprehensive
loss (47) 651 797 651
--- --- --- ---
Net credit impairment
loss recognized in
earnings (53) (322) (149) (322)
Total non-interest income 6,908 4,771 11,457 10,176
Other expense:
Salaries and employee
benefits 5,419 5,754 10,838 11,442
Occupancy expense 1,069 881 2,217 1,950
Furniture and equipment
expense 662 634 1,286 1,240
Marketing and advertising
expense 261 335 507 605
Identifiable intangible
amortization 138 171 271 342
Professional services 745 482 1,354 1,374
Outside processing
expense 854 1,086 1,885 2,037
FDIC deposit and other
insurance expense 524 984 1,056 1,428
Other real estate owned
expense 1,195 292 1,692 618
Other expense 997 948 1,849 1,810
--- --- ----- -----
Total non-interest
expense 11,864 11,567 22,955 22,846
Income (loss) before
income taxes 3,180 (2,829) 3,715 (1,046)
Income taxes (benefit) 654 (1,321) 476 (1,069)
Net income (loss) 2,526 (1,508) 3,239 23
Preferred stock dividends
and discount accretion (419) (413) (839) (825)
---- ---- ---- ----
Net income (loss)
available to common
shareholders $2,107 $(1,921) $2,400 $(802)
====== ======= ====== =====
Per Common Share Data
Average shares
outstanding 6,213,284 5,791,023 6,030,134 5,763,648
Basic earnings (loss) per
common share $0.34 $(0.33) $0.40 $(0.14)
Average shares
outstanding for diluted
earnings per share 6,268,026 5,791,023 6,076,656 5,763,648
Diluted earnings (loss)
per common share $0.34 $(0.33) $0.40 $(0.14)
Cash dividends declared
per common share $0.05 $0.10 $0.10 $0.20
SOURCE VIST Financial Corp.
