WYOMISSING, Pa., July 26, 2011 /PRNewswire/ -- VIST Financial Corp. (NASDAQ: VIST) reported net income of $1.3 million for the second quarter of 2011, as compared to $2.5 million for the same period in 2010. Basic and diluted earnings per common share were $0.14 for the second quarter of 2011, as compared to basic and diluted earnings per common share of $0.34 for the same period in 2010. Excluding a non-recurring $1.9 million gain recognized during the second quarter of 2010, pre-tax income for the quarter increased by 42%, as compared to the same period in 2010.
For the first six months of 2011, the Company reported net income of $1.8 million, as compared to $3.2 million for the same period in 2010. Basic and diluted earnings per common share were $0.15 for the first six months of 2011, as compared to basic and diluted earnings per common share of $0.40 for the same period in 2010.
The operating results for the second quarter and for the first six months of 2011 were negatively impacted by (i) $200,000 and $1.0 million, respectively, of net losses recognized on the sale of other real estate owned, as compared to $600,000 for both of the same periods in 2010 and (ii) approximately $400,000 of integration expenses associated with the previously announced acquisition of Allegiance Bank of North America ("Allegiance"). The operating results for the second quarter and for the first six months of 2010 reflected a gain of approximately $1.9 million recognized on the sale of a 25% equity interest in First HSA, LLC related to the transfer of approximately $89.0 million of health savings account deposits in the second quarter of 2010.
Commenting on the second quarter 2011 results, Robert D. Davis, President and Chief Executive Officer of VIST Financial Corp. said, "We are pleased with the positive momentum building across our banking, insurance and investment business lines. This momentum has resulted in our second quarter reported net income of $1.3 million. While we are making progress on a linked quarter basis, our financial results will continue to be influenced for the balance of the year with elevated asset quality costs and the potential of additional OTTI charges. In spite of the slow pace of improvement in our regional business climate, we continue to be optimistic about the future opportunities for VIST Financial."
Davis stated, "At VIST Bank, our commercial loan pipeline is strong which suggests an annual growth rate of 4-6% in 2011. Our asset quality metrics remain stable with non-performing assets to total assets of 2.35%. Net charge-offs for the quarter totaled $1.7 million with provision expense totaling $1.8 million, providing adequate coverage of both total loans and non-performing loans at quarter end. VIST Insurance and VIST Capital Management are both generating increased revenue for the second quarter of 2011 as compared to the second quarter of 2010."
"As reported previously, the Allegiance Bank acquisition of November 19, 2010, is now complete and is accretive to shareholder return," Davis continued. "All former Allegiance customers have been fully converted to VIST Bank systems which will eliminate a significant portion of the $400,000 merger and conversion related expenses incurred in the first six months in 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 $3.3 million, or 16%, to $23.1 million for the first six months of 2011, as compared to $19.8 million for the same period in 2010. The increase in net interest income for the first six months 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 six months of 2011 increased by $94.2 million or 10%, to $995.8 million, as compared to $901.6 million for the same period in 2010. The cost of interest-bearing deposits for the first six months of 2011 decreased to 1.48%, as compared to 1.85% for same period in 2010. The Corporation's taxable-equivalent net interest margin percentage for the first six months of 2011, improved to 3.70% as compared to 3.42% for same period in 2010.
The provision for loan losses was $4.1 million for the first six months of 2011, as compared to $4.6 million for the same period in 2010. The allowance for loan losses as a percentage of total loans increased to 1.65% at June 30, 2011, as compared to 1.55% at December 31, 2010, and 1.43% at June 30, 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 June 30, 2011, total non-performing assets were $32.8 million or 2.3% of total assets compared to $32.4 million or 2.4% of total assets at December 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 $169.4 million or 13%, to $1.46 billion at June 30, 2011 from $1.29 billion at June 30, 2010. Total deposits increased by approximately $185.9 million or 18%, to $1.19 billion at June 30, 2011 from $1.01 billion at June 30, 2010. In addition to the deposits assumed in the Allegiance acquisition, our deposit growth has been attributable to our ability to attract and retain lower cost core deposits. In addition to the covered loans acquired in the Allegiance acquisition, our loan growth has been the result of strong commercial loan growth.
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 August 1, 2011 payable August 15, 2011.
VIST Financial Corp. is diversified financial services company headquartered in Wyomissing, PA, offering banking, insurance, investments, and wealth management services throughout Berks, Southern Schuylkill, Montgomery, Delaware, Philadelphia and Chester 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
VIST Financial Corp. will host a quarterly investor conference call on Wednesday, July 27, 2011 at 8:30 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:
https://services.choruscall.com/links/visit110727.html
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 877.344.7529 (Conference # 10002291) which will be available one hour after the end of the call on July 27, 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)
June 30, 2011 ---- Assets Cash and due from banks $16,719 Federal funds sold 2,021 Interest-bearing deposits in banks 140 --- Total cash and cash equivalents 18,880 Mortgage loans held for sale 1,536 Securities available for sale 348,256 Securities held to maturity 2,161 Federal Home Loan Bank stock 6,416 Loans, net of allowance for loan losses ($15,439 at June 30, 2011; $14,790 at December 31, 2010 and $12,825 at June 30, 2010) 917,629 Covered loans 58,954 Premises and equipment, net 6,555 Other real estate owned 2,337 Covered other real estate owned 520 Identifiable intangible assets 3,521 Goodwill 41,858 Bank owned life insurance 19,590 FDIC prepaid deposit insurance 3,023 FDIC indemnification asset 6,988 Other assets 19,799 ------ Total assets $1,458,023 ========== Liabilities and Shareholders' Equity Liabilities Deposits: Non-interest bearing $121,116 Interest bearing 1,070,306 --------- Total deposits 1,191,422 Securities sold under agreements to repurchase 105,131 Borrowings - Junior subordinated debt, at fair value 18,470 Other liabilities 6,576 Total liabilities 1,321,599 --------- 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 $1,251 at June 30, 2011, $1,480 at December 31, 2010 and $1,694 at June 30, 2010 23,749 Common stock, $5.00 par value; authorized 20,000,000 shares 32,931 Stock Warrants 2,307 Surplus 65,621 Retained earnings 13,266 Accumulated other comprehensive loss (1,259) Treasury stock: 10,484 shares at cost (191) ---- Total shareholders' equity 136,424 Total liabilities and shareholders' equity $1,458,023 ========== Common Stock: Shares issued 6,586,106 Shares outstanding 6,575,622
December 31, 2010 ---- Assets Cash and due from banks $15,443 Federal funds sold 1,500 Interest-bearing deposits in banks 872 --- Total cash and cash equivalents 17,815 Mortgage loans held for sale 3,695 Securities available for sale 279,755 Securities held to maturity 2,022 Federal Home Loan Bank stock 7,099 Loans, net of allowance for loan losses ($15,439 at June 30, 2011; $14,790 at December 31, 2010 and $12,825 at June 30, 2010) 939,573 Covered loans 66,770 Premises and equipment, net 5,639 Other real estate owned 5,303 Covered other real estate owned 247 Identifiable intangible assets 3,795 Goodwill 41,858 Bank owned life insurance 19,373 FDIC prepaid deposit insurance 3,985 FDIC indemnification asset 7,003 Other assets 21,080 ------ Total assets $1,425,012 ========== Liabilities and Shareholders' Equity Liabilities Deposits: Non-interest bearing $122,450 Interest bearing 1,026,830 --------- Total deposits 1,149,280 Securities sold under agreements to repurchase 106,843 Borrowings 10,000 Junior subordinated debt, at fair value 18,437 Other liabilities 8,005 ----- Total liabilities 1,292,565 --------- 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 $1,251 at June 30, 2011, $1,480 at December 31, 2010 and $1,694 at June 30, 2010 23,520 Common stock, $5.00 par value; authorized 20,000,000 shares 32,732 Stock Warrants 2,307 Surplus 65,506 Retained earnings 12,960 Accumulated other comprehensive loss (4,387) Treasury stock: 10,484 shares at cost (191) ---- Total shareholders' equity 132,447 ------- Total liabilities and shareholders' equity $1,425,012 ========== Common Stock: Shares issued 6,546,273 Shares outstanding 6,535,789
June 30, 2010 ---- Assets Cash and due from banks $25,357 Federal funds sold 7,385 Interest-bearing deposits in banks 286 --- Total cash and cash equivalents 33,028 Mortgage loans held for sale 3,109 Securities available for sale 261,292 Securities held to maturity 2,086 Federal Home Loan Bank stock 5,715 Loans, net of allowance for loan losses ($15,439 at June 30, 2011; $14,790 at December 31, 2010 and $12,825 at June 30, 2010) 882,759 Covered loans - Premises and equipment, net 5,976 Other real estate owned 5,148 Covered other real estate owned - Identifiable intangible assets 4,411 Goodwill 39,999 Bank owned life insurance 19,141 FDIC prepaid deposit insurance 4,902 FDIC indemnification asset - Other assets 21,038 ------ Total assets $1,288,604 ========== Liabilities and Shareholders' Equity Liabilities Deposits: Non-interest bearing $114,362 Interest bearing 891,210 ------- Total deposits 1,005,572 Securities sold under agreements to repurchase 110,384 Borrowings 10,000 Junior subordinated debt, at fair value 19,308 Other liabilities 8,650 ----- Total liabilities 1,153,914 --------- 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 $1,251 at June 30, 2011, $1,480 at December 31, 2010 and $1,694 at June 30, 2010 23,306 Common stock, $5.00 par value; authorized 20,000,000 shares 32,586 Stock Warrants 2,307 Surplus 65,466 Retained earnings 13,706 Accumulated other comprehensive loss (2,490) Treasury stock: 10,484 shares at cost (191) ---- Total shareholders' equity 134,690 ------- Total liabilities and shareholders' equity $1,288,604 ========== Common Stock: Shares issued 6,517,124 Shares outstanding 6,506,640
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, 2011 2010 2011 2010 ---- ---- ---- ---- Interest and dividend Income Interest and fees on loans $13,507 $12,415 $27,486 $24,858 Interest on securities: Taxable 3,109 2,894 5,662 5,841 Tax-exempt 334 450 668 846 Dividend income 22 8 44 18 Other interest income 10 266 15 274 --- --- --- --- Total interest income 16,982 16,033 33,875 31,837 Interest expense Interest on deposits 3,832 4,238 7,616 8,740 Interest on short- term borrowings - 18 - 18 Interest on securities sold under agreements to repurchase 1,187 1,198 2,363 2,380 Interest on borrowings - 89 7 187 Interest on junior subordinated debt 407 344 813 689 --- --- --- --- Total interest expense 5,426 5,887 10,799 12,014 Net interest income 11,556 10,146 23,076 19,823 Provision for loan losses 1,860 2,010 4,090 4,610 ----- ----- ----- ----- Net interest income after provision for loan losses 9,696 8,136 18,986 15,213 Non-interest income: Customer service fees 433 549 850 1,132 Mortgage banking activities, net 149 231 318 365 Commissions and fees from insurance sales 3,176 3,092 6,013 6,168 Broker and investment advisory commissions and fees 157 151 337 286 Earnings on bank owned life insurance 120 113 218 191 Other commissions and fees 478 558 916 1,062 Gain on sale of equity interest - 1,875 - 1,875 Other (loss) income (33) 198 (23) 241 Net losses on sale of other real estate owned (208) (578) (1,012) (594) Net realized gains on sales of securities 293 194 382 286 Total other-than- temporary impairment losses on investments (206) (6) (198) (946) Portion of non-credit impairment loss recognized in other comprehensive loss (36) (47) (108) 797 --- --- ---- --- Net credit impairment loss recognized in earnings (242) (53) (306) (149) Total non-interest income 4,323 6,330 7,693 10,863 Non-interest expense: Salaries and employee benefits 5,989 5,419 11,900 10,838 Occupancy expense 1,193 1,069 2,493 2,217 Furniture and equipment expense 729 662 1,394 1,286 Marketing and advertising expense 566 261 885 507 Identifiable intangible amortization 137 138 275 271 Professional services 747 745 1,803 1,354 Outside processing expense 928 854 1,997 1,885 FDIC deposit and other insurance expense 542 524 1,225 1,056 Other real estate owned expense 412 617 824 1,098 Other expense 918 997 1,723 1,849 --- --- ----- ----- Total non-interest expense 12,161 11,286 24,519 22,361 Income before income taxes 1,858 3,180 2,160 3,715 Income tax expense 550 654 346 476 Net income 1,308 2,526 1,814 3,239 Preferred stock dividends and discount accretion (428) (419) (855) (839) ---- ---- ---- ---- Net income available to common shareholders $880 $2,107 $959 $2,400 ==== ====== ==== ====== Per Common Share Data Average shares outstanding 6,572,691 6,213,284 6,567,122 6,030,134 Basic earnings per common share $0.14 $0.34 $0.15 $0.40 Average shares outstanding for diluted earnings per share 6,613,536 6,268,026 6,614,659 6,076,656 Diluted earnings per common share $0.14 $0.34 $0.15 $0.40 Cash dividends declared per common share $0.05 $0.05 $0.10 $0.10 Net interest margin (fully taxable equivalent) 3.67% 3.43% 3.70% 3.42%
VIST FINANCIAL CORP. AND SUBSIDIARIES UNAUDITED CONSOLIDATED SELECTED FINANCIAL DATA (Dollar amounts in thousands)
As Of and For The Three-Month Period Ended ------------------------------------------ March June 30, 31, 2011 2011 ---- ---- Loans outstanding $933,068 $926,194 Covered loans outstanding 58,954 62,818 Troubled debt restructurings (accruing) 8,790 11,115 Allowance for loan losses 15,439 15,283 NON-PERFORMING ASSETS: ---------------------- Non-accrual loans $30,273 $28,120 Loans past due 90 days or more still accruing 215 456 --- --- Total non-performing loans 30,488 28,576 Other real estate owned 2,337 1,769 ----- ----- Total non-performing assets $32,825 $30,345 ======= ======= ASSET QUALITY STATISTICS: ------------------------- Net charge-offs to average loans (annualized) 0.74% 0.74% Allowance for loan losses as a percent of loans 1.65% 1.65% Allowance for loan losses as a percent of non- performing loans 50.64% 53.48% Allowance for loan losses as a percent of non- performing assets 47.03% 50.36% Net charge-offs 1,704 1,737 Non-performing assets to total assets * 2.35% 2.25% NON-PERFORMING COVERED ASSETS: ---------------------- Covered non-accrual loans $5,805 $4,036 Covered other real estate owned 520 711
As Of and For The Three-Month Period Ended ------------------------------------------ December September 31, 30, June 30, 2010 2010 2010 ---- ---- ---- Loans outstanding $954,363 $927,579 $895,584 Covered loans outstanding 66,770 n/a n/a Troubled debt restructurings (accruing) 10,772 12,975 6,333 Allowance for loan losses 14,790 14,418 12,825 NON-PERFORMING ASSETS: ---------------------- 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 ======= ======= ======= ASSET QUALITY STATISTICS: ------------------------- Net charge-offs to average loans (annualized) 0.75% 0.77% 0.72% Allowance for loan losses as a percent of loans 1.55% 1.55% 1.43% Allowance for loan losses as a percent of non- performing loans 54.56% 55.17% 57.02% Allowance for loan losses as a percent of non- performing assets 45.63% 48.60% 46.39% Net charge-offs 1,678 1,957 1,955 Non-performing assets to total assets * 2.39% 2.18% 2.15% NON-PERFORMING COVERED ASSETS: ---------------------- Covered non-accrual loans $4,408 n/a n/a Covered other real estate owned 247 n/a n/a
* Excludes covered assets
VIST FINANCIAL CORP. AND SUBSIDIARIES UNAUDITED CONSOLIDATED SELECTED FINANCIAL DATA (Dollar amounts in thousands)
Average Balances Average Balances For the Three Months For the Six Months Ended Ended -------------------- ------------------ June 30, June 30, June 30, 2011 2010 2011 2010 ---- ---- ---- ---- Assets Federal funds sold $18,293 $6,772 $13,879 $17,825 Investment securities and interest bearing cash 304,938 343,947 292,675 306,701 Federal Home Loan Bank stock 6,518 5,715 6,735 5,715 Mortgage loans held for sale 1,178 2,064 1,228 1,515 Loans: Commercial loans 765,507 716,289 771,518 724,631 Consumer loans 110,778 126,218 112,776 128,422 Mortgage loans 50,735 49,237 51,562 48,529 Total loans $927,020 $891,744 $935,856 $901,582 ======== ======== ======== ======== Covered loans 58,017 - $59,938 $- Interest- earning assets 1,309,446 1,244,527 1,303,576 $1,227,623 Goodwill and intangible assets 45,463 43,997 45,531 44,056 Total assets $1,430,348 $1,364,309 $1,423,029 $1,346,607 ========== ========== ========== ========== Liabilities and shareholders' equity Deposits: Non- interest bearing deposits $119,639 $110,944 $119,306 $106,673 Interest bearing deposits: NOW, money market and savings 574,214 535,200 556,536 516,099 Time deposits 471,277 425,298 480,862 436,993 ------- ------- ------- ------- Total Interest- Bearing Deposits 1,045,491 960,498 1,037,398 953,092 --------- ------- --------- ------- Total deposits $1,165,130 $1,071,442 $1,156,704 $1,059,765 ========== ========== ========== ========== Securities sold under agreements to repurchase $105,120 $110,137 105,957 112,966 Borrowings - 24,620 691 17,903 Junior subordinated debt 18,592 19,710 18,516 19,684 Interest- bearing liabilities 1,169,203 1,114,965 1,162,562 1,103,645 --------- --------- --------- --------- Shareholders' equity $134,275 $130,431 $133,245 $128,154 ======== ======== ======== ========
SOURCE VIST Financial Corp.