VIST FINANCIAL CORP. 
By WYOMISSING, Pa., April 26, 2011 /PRNewswire/ -- VIST Financial Corp. (NASDAQ: VIST) reported net income of $506,000 for the first quarter of 2011, as compared to $713,000 for the same period in 2010. Basic and diluted earnings per common share were $0.01 for the first quarter of 2011, as compared to basic and diluted earnings per common share of $0.05 for the same period in 2010.
The operating results for the first quarter of 2011 were negatively impacted by (i) $804,000 of net losses recognized on the sale of other real estate owned, as compared to $16,000 for the first quarter of 2010 and (ii) approximately $400,000 of integration expenses associated with the previously announced acquisition of Allegiance Bank of North America ("Allegiance").
Commenting on the first quarter 2011 results, Robert D. Davis, President and Chief Executive Officer of VIST Financial Corp. said, "While the national and regional business climate continues to slowly improve, the lagging effects of the recent recession continue to influence our operating results. Recognizing the remaining challenges, which include elevated asset quality costs and potential OTTI charges that will remain an influence on our results through 2011, we continue to be cautiously optimistic about the future opportunities for VIST Financial."
Davis stated, "We improved our net interest margin for the quarter; however commercial loan outstandings decreased from year-end as a result of a conscious decision to exit a number of commercial loan relationships which did not meet our credit standards. Our commercial loan pipeline is strong which suggests an annual growth rate of 5-7% in 2011. Our overall asset quality metrics continue to be stable with non-performing assets declining by $2.1 million or 6% at March 31, 2011 compared to year end. Our net charge-offs for the quarter totaled $1.8 million with provision expense totaling $2.2 million, thereby improving our overall allowance for loan loss coverage of both total loans and non-performing loans."
"The Allegiance Bank acquisition of November 19, 2010, was accretive to shareholder return during the first quarter," Davis continued. "The former Allegiance Bank will be fully integrated with VIST Financial during the second quarter of 2011, which will reduce a significant portion of the $400,000 in merger and conversion related expenses incurred during the first quarter of 2011."
Declaration of Cash Dividend
The Corporation 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 May 6, 2011 payable May 13, 2011.
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 increased $1.8 million, or 19%, to $11.5 million for the first quarter of 2011, as compared to $9.7 million for the same period in 2010. The increase in net interest income for the first quarter of 2011 reflects a higher level of total loans resulting from strong commercial loan growth, in addition to the covered loans acquired in the Allegiance acquisition, and a reduction in interest expense on deposits. The average balance of loans (including covered loans) for the first quarter of 2011 increased by $159.5 million or 17%, to $1.1 billion, as compared to $912.5 million for the same period in 2010. The cost of interest-bearing deposits decreased to 1.49% for the first quarter of 2011, as compared to 1.93% for same period in 2010. The Corporation's taxable-equivalent net interest margin percentage improved to 3.73% for the first quarter of 2011, as compared to 3.40% for same period in 2010.
The provision for loan losses was $2.2 million for the first quarter of 2011, as compared to $2.6 million for the same period in 2010. The allowance for loan losses as a percentage of total loans increased to 1.65% of loans at March 31, 2011, as compared to 1.55% of loans at December 31, 2010, and 1.41% of loans at March 31, 2010. The increased level of the allowance for loan losses reflects continued credit risk related to certain commercial credits that remain stressed as a result of the prolonged economic downturn. At March 31, 2011, total non-performing loans were $28.6 million or 3.1% of total loans compared to $23.6 million or 2.6% of total loans at March 31, 2010. The Corporation closely monitors the loan portfolio and the adequacy of the loan loss reserve by regularly evaluating borrower financial performance, underlying collateral values and other relevant factors.
Total assets increased by approximately $73.1 million or 5%, to $1.41 billion at March 31, 2011 from $1.34 billion at March 31, 2010. Total deposits increased by approximately $87.3 million or 8%, to $1.15 billion at March 31, 2011 from $1.06 billion at March 31, 2010. The year-over-year increase in total assets and total deposits was primarily the result of the Allegiance acquisition. At March 31, 2011, total covered loans and deposits associated with the Allegiance acquisition were $62.8 million and $65.4 million, respectively. The remaining increase in total assets and total deposits was the result of strong commercial loan and retail deposit growth, respectively.
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.
Quarterly Shareholder and Investor Conference Call
In conjunction with the Annual Meeting of shareholders, VIST Financial Corp. will host a quarterly shareholder and investor conference call on Tuesday, April 26, 2011 at
10:00 a.m. ET. 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=135282
The conference call webcast and a copy of the Annual Shareholder Meeting presentation 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 877.344.7529 (Conference # 450385) which will be available one hour after the end of the meeting on April 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. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands, except share data)
December
March 31, 31, March 31,
2011 2010 2010
---- ---- ----
Assets
Cash and due from banks $15,633 $15,443 $20,293
Federal funds sold 18,000 1,500 35,575
Interest-bearing deposits in
banks 54 872 432
--- --- ---
Total cash and cash equivalents 33,687 17,815 56,300
Mortgage loans held for sale 196 3,695 2,229
Securities available for sale 288,952 279,755 274,190
Securities held to maturity 2,028 2,022 2,089
Federal Home Loan Bank stock 6,749 7,099 5,715
Loans, net of allowance for
loan losses ($15,283 at March
31, 2011; $14,790 at December
31, 2010 and $12,770 at March
31, 2010) 910,911 939,573 891,992
Covered loans 62,818 66,770 -
Premises and equipment, net 5,844 5,639 6,225
Other real estate owned 1,769 5,303 7,441
Covered other real estate owned 711 247 -
Identifiable intangible assets 3,658 3,795 4,052
Goodwill 41,858 41,858 39,982
Bank owned life insurance 19,471 19,373 19,028
FDIC prepaid deposit insurance 3,428 3,985 5,294
FDIC indemnification asset 7,014 7,003 -
Other assets 22,750 21,080 24,243
------ ------ ------
Total assets $1,411,844 $1,425,012 $1,338,780
========== ========== ==========
Liabilities and Shareholders'
Equity
Liabilities
Deposits:
Non-interest bearing $120,053 $122,450 $106,800
Interest bearing 1,028,915 1,026,830 954,824
--------- --------- -------
Total deposits 1,148,968 1,149,280 1,061,624
Securities sold under
agreements to repurchase 105,194 106,843 113,985
Federal funds purchased - - -
Borrowings - 10,000 10,000
Junior subordinated debt, at
fair value 18,593 18,437 19,714
Other liabilities 7,088 8,005 7,729
Total liabilities 1,279,843 1,292,565 1,213,052
--------- --------- ---------
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 $1,365 at March
31, 2011, $1,480 at December
31, 2010 and $1,801 at March
31, 2010 23,635 23,520 23,199
Common stock, $5.00 par value;
authorized 20,000,000 shares 32,898 32,732 29,333
Stock Warrants 2,307 2,307 2,307
Surplus 65,493 65,506 63,800
Retained earnings 12,711 12,960 11,893
Accumulated other comprehensive
loss (4,852) (4,387) (4,613)
Treasury stock: 10,484 shares
at cost (191) (191) (191)
---- ---- ----
Total shareholders' equity 132,001 132,447 125,728
Total liabilities and
shareholders' equity $1,411,844 $1,425,012 $1,338,780
========== ========== ==========
Common Stock:
Shares issued 6,579,626 6,546,273 5,866,460
Shares outstanding 6,569,142 6,535,789 5,855,976
VIST FINANCIAL CORP. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollar amounts in thousands, except share data)
Three Months Ended March 31,
2011 2010
---- ----
Interest and dividend Income
Interest and fees on loans $13,979 $12,443
Interest on securities:
Taxable 2,553 2,947
Tax-exempt 334 396
Dividend income 22 10
Other interest income 5 8
--- ---
Total interest income 16,893 15,804
Interest expense
Interest on deposits 3,784 4,502
Interest on securities sold under
agreements to repurchase 1,176 1,182
Interest on borrowings 7 98
Interest on junior subordinated debt 406 345
--- ---
Total interest expense 5,373 6,127
Net interest income 11,520 9,677
Provision for loan losses 2,230 2,600
----- -----
Net interest income after provision
for loan losses 9,290 7,077
Non-interest income:
Customer service fees 417 583
Mortgage banking activities, net 169 134
Commissions and fees from insurance
sales 2,837 3,076
Broker and investment advisory
commissions and fees 180 135
Earnings on bank owned life insurance 98 78
Other commissions and fees 438 504
Other income 10 43
Net losses on sale of other real
estate owned (804) (16)
Net realized gains on sales of
securities 89 92
Total other-than-temporary
impairment losses on investments 8 (940)
Portion of non-credit impairment loss
recognized
in other comprehensive loss (72) 844
--- ---
Net credit impairment loss recognized
in earnings (64) (96)
Total non-interest income 3,370 4,533
Non-interest expense:
Salaries and employee benefits 5,911 5,419
Occupancy expense 1,300 1,148
Furniture and equipment expense 665 624
Marketing and advertising expense 319 246
Identifiable intangible amortization 138 133
Professional services 1,056 609
Outside processing expense 1,069 1,031
FDIC deposit and other insurance
expense 683 532
Other real estate owned expense 412 481
Other expense 805 852
--- ---
Total non-interest expense 12,358 11,075
Income before income taxes 302 535
Income tax benefit (204) (178)
Net income 506 713
Preferred stock dividends and discount
accretion (427) (420)
---- ----
Net income available to common
shareholders $79 $293
=== ====
Per Common Share Data
Average shares outstanding 6,561,492 5,844,949
Basic earnings per common share $0.01 $0.05
Average shares outstanding for diluted
earnings per share 6,615,779 5,882,071
Diluted earnings per common share $0.01 $0.05
Cash dividends declared per common
share $0.05 $0.05
Net interest margin (fully taxable
equivalent) 3.73% 3.40%
VIST FINANCIAL CORP. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED SELECTED FINANCIAL DATA
(Dollar amounts in thousands)
As Of and For The Three-Month Period Ended
------------------------------------------
March 31, December 31, September 30,
2011 2010 2010
---- ---- ----
Loans outstanding $926,194 $954,363 $927,579
Covered loans
outstanding 62,818 66,770 n/a
Troubled debt
restructurings
(accruing) 11,115 10,772 12,975
Allowance for loan
losses 15,283 14,790 14,418
NON-PERFORMING
ASSETS:
--------------
Non-accrual loans $28,120 $26,513 $25,938
Loans past due 90
days or more still
accruing 456 594 196
--- --- ---
Total non-
performing loans 28,576 27,107 26,134
Other real estate
owned 1,769 5,303 3,531
----- ----- -----
Total non-
performing assets $30,345 $32,410 $29,665
======= ======= =======
ASSET QUALITY
STATISTICS:
-------------
Net charge-offs to
average loans
(annualized) 0.74% 0.75% 0.77%
Allowance for loan
losses as a percent
of loans 1.65% 1.55% 1.55%
Allowance for loan
losses as a percent
of non-performing
loans 53.48% 54.56% 55.17%
Allowance for loan
losses as a percent
of non-performing
assets 50.36% 45.63% 48.60%
Net charge-offs 1,737 1,678 1,957
Non-performing
assets to total
assets * 2.25% 2.39% 2.18%
NON-PERFORMING
COVERED ASSETS:
----------------
Covered non-accrual
loans $4,036 $4,408 n/a
Covered other real
estate owned 711 247 n/a
As Of and For The Three-Month Period Ended
------------------------------------------
June 30, March 31,
2010 2010
---- ----
Loans outstanding $895,584 $904,762
Covered loans outstanding n/a n/a
Troubled debt
restructurings
(accruing) 6,333 6,150
Allowance for loan losses 12,825 12,770
NON-PERFORMING ASSETS:
----------------------
Non-accrual loans $22,204 $23,635
Loans past due 90 days or
more still accruing 294 204
--- ---
Total non-performing
loans 22,498 23,839
Other real estate owned 5,148 7,441
----- -----
Total non-performing
assets $27,646 $31,280
======= =======
ASSET QUALITY STATISTICS:
-------------------------
Net charge-offs to
average loans
(annualized) 0.72% 0.56%
Allowance for loan losses
as a percent of loans 1.43% 1.41%
Allowance for loan losses
as a percent of non-
performing loans 57.02% 53.58%
Allowance for loan losses
as a percent of non-
performing assets 46.39% 40.82%
Net charge-offs 1,955 1,279
Non-performing assets to
total assets * 2.15% 2.34%
NON-PERFORMING COVERED
ASSETS:
----------------------
Covered non-accrual
loans n/a n/a
Covered other real estate
owned n/a n/a
* Excludes covered assets
VIST FINANCIAL CORP. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED SELECTED FINANCIAL DATA
(Dollar amounts in thousands)
Average Balances
For the Three Months
Ended
March 31,
2011 2010
---- ----
Assets
Federal funds sold $9,417 $29,001
Investment securities and
interest bearing cash 280,276 269,042
Federal Home Loan Bank stock 5,289 5,715
Mortgage loans held for sale 1,278 960
Loans:
Commercial loans 777,265 733,065
Consumer loans 114,722 130,650
Mortgage loans 50,630 48,774
Total loans $942,617 $912,489
======== ========
Covered loans 64,053 -
Interest-earning assets 1,297,641 1,211,492
Goodwill and intangible assets 45,601 44,115
Total assets $1,415,630 $1,328,709
========== ==========
Liabilities and shareholders'
equity
Deposits:
Non-interest bearing deposits $118,970 $102,355
Interest bearing deposits:
NOW, money market and savings 538,664 496,785
Time deposits 490,552 448,819
------- -------
Total Interest-Bearing
Deposits 1,029,216 945,604
--------- -------
Total deposits $1,148,186 $1,047,959
========== ==========
Securities sold under
agreements to repurchase $107,193 $115,827
Borrowings 1,000 11,111
Junior subordinated debt 18,438 19,658
Interest-bearing liabilities 1,155,847 1,092,200
--------- ---------
Shareholders' equity $132,183 $125,852
======== ========
SOURCE VIST Financial Corp.
