VIST FINANCIAL CORP. 
By WYOMISSING, Pa., Oct. 25, 2011 /PRNewswire/ -- VIST Financial Corp. (NASDAQ: VIST) reported net income of $1.4 million for the third quarter of 2011, as compared to a net loss of $602,000 for the same period in 2010. Basic and diluted earnings per common share were $0.15 for the third quarter of 2011, as compared to basic and diluted losses per common share of $0.16 for the same period in 2010.
For the first nine months of 2011, the Company reported net income of $3.2 million, as compared to $2.6 million for the same period in 2010. Basic and diluted earnings per common share were $0.30 for the first nine months of 2011, as compared to basic and diluted earnings per common share of $0.22 for the same period in 2010.
The improved operating results for the third quarter and the first nine months of 2011, as compared to the same periods in 2010, resulted from a significant increase in net interest income, a reduction of loan loss provision and fewer losses on the sale of other real estate owned. The operating results for the first nine months of 2010 reflected a gain of approximately $1.9 million 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.
Commenting on the third quarter 2011 results, Robert D. Davis, President and Chief Executive Officer of VIST Financial Corp. said, "We are pleased with the progress we are making this year on a linked quarter basis through September 30, 2011 with both our core operating results and reported net income of $1.4 million for the third quarter. 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. Our near term forecast contemplates a slow but steady improvement in our regional business climate."
Davis stated, "As we entered the third quarter of this year at VIST Bank, our commercial loan pipeline was strong which suggested we would experience growth in the third quarter. This growth did not materialize due in great part to the turmoil this summer in the capital markets, which clearly eroded both business and consumer confidence. Our asset quality metrics remain stable with non-performing assets to total assets of 2.46%. At September 30, 2011, our allowance for loan losses provided adequate coverage of both total loans and non-performing loans."
Davis continued, "In July of this year, VIST Financial filed an S-1 Registration statement with the SEC. The Company's existing capital ratios continue to exceed all regulatory guidelines for a well-capitalized institution; and given the present volatility and uncertainty of the equity markets, we are evaluating capital alternatives both in terms of timing and the amount of capital to be raised."
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 $4.6 million, or 15%, to $34.6 million for the first nine months of 2011, as compared to $30.0 million for the same period in 2010. The increase in net interest income was primarily the result of a higher level of loans, which was attributable to the covered loans acquired in the Allegiance acquisition and strong commercial loan growth during the fourth quarter of 2010. The average balance of loans (including covered loans) for the first nine months of 2011 increased by $88.2 million or 10%, to $993.7 million, as compared to $905.4 million for the same period in 2010. The cost of interest-bearing deposits for the first nine months of 2011 decreased to 1.45%, as compared to 1.80% for same period in 2010. The Corporation's taxable-equivalent net interest margin percentage for the first nine months of 2011, improved to 3.63% as compared to 3.44% for same period in 2010.
The provision for loan losses was $6.1 million for the first nine months of 2011, as compared to $8.2 million for the same period in 2010. The elevated provision for loan losses for the first nine months of 2010 was reflective of higher charge-offs in 2010 and an increase in the specific allowance required on impaired loans due to underlying collateral values being more depressed in 2010. The allowance for loan losses as a percentage of total loans increased to 1.67% at September 30, 2011, as compared to 1.55% at December 31, 2010 and September 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. 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. At September 30, 2011, non-covered non-performing loans were $32.2 million or 3.5% of non-covered loans compared to $27.1 million or 2.8% of non-covered loans at December 31, 2010.
Total assets increased by approximately $125.0 million or 9%, to $1.49 billion at September 30, 2011 from $1.36 billion at September 30, 2010. Total deposits increased by approximately $137.1 million or 13%, to $1.22 billion at September 30, 2011 from $1.08 billion at September 30, 2010. In addition to the deposits assumed in the Allegiance acquisition, deposit growth has been attributable to our ability to attract and retain lower cost core deposits.
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 November 3, 2011 payable November 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, October 26, 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/vist111026.html
The conference call can also be accessed through a link located under the Investor Relations page within VIST Financial Corp's website: www.VISTfc.com.
To replay the conference call, dial 877.344.7529 (Conference # 10004931) which will be available one hour after the end of the call on October 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
CONSOLIDATED BALANCE SHEETS
(Unaudited; in thousands, except share
data)
September December September
30, 31, 30,
2011 2010 2010
---- ---- ----
ASSETS
Cash
and
due
from
banks $16,067 $15,443 $15,163
Federal
funds
sold - 1,500 54,050
Interest-
bearing
deposits
in
banks 39,428 872 31
------ --- ---
Total
cash
and
cash
equivalents 55,495 17,815 69,244
Securities
available
for
sale 347,522 279,755 270,049
Securities
held
to
maturity,
fair
value
of
$2,491
at
September
30,
2011;
$1,888
at
December
31,
2010;
and
$1,955
at
September
30,
2010 2,584 2,022 2,090
Federal
Home
Loan
Bank
stock 6,100 7,099 5,715
Mortgage
loans
held
for
sale 1,772 3,695 3,390
Loans 927,850 954,363 927,579
Allowance
for
loan
losses (15,458) (14,790) (14,418)
------- ------- -------
Net
loans 912,392 939,573 913,161
Covered
loans 57,032 66,770 -
Premises
and
equipment,
net 6,515 5,639 5,781
Other
real
estate
owned 2,849 5,303 3,531
Covered
other
real
estate
owned 596 247 -
Goodwill 42,108 41,858 40,249
Identifiable
intangible
assets,
net 3,385 3,795 4,265
Bank
owned
life
insurance 19,710 19,373 19,252
FDIC
prepaid
deposit
insurance 2,911 3,985 4,429
FDIC
indemnification
asset 6,816 7,003 -
Other
assets 17,947 21,080 19,544
------ ------ ------
Total
assets $1,485,734 $1,425,012 $1,360,700
========== ========== ==========
LIABILITIES
AND
SHAREHOLDERS'
EQUITY
Deposits:
Non-
interest
bearing $116,543 $122,450 $110,378
Interest
bearing 1,098,961 1,026,830 968,024
--------- --------- -------
Total
deposits 1,215,504 1,149,280 1,078,402
Repurchase
agreements 103,917 106,843 108,885
Federal
funds
purchased - - -
Borrowings - 10,000 10,000
Junior
subordinated
debt,
at
fair
value 18,591 18,437 18,012
Other
liabilities 6,708 8,005 9,611
----- ----- -----
Total
liabilities 1,344,720 1,292,565 1,224,910
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
$1,136
at
September
30,
2011;
$1,480 at December 31, 2010 ; and $1,587 at September 30, 2010 23,864 23,520 23,413
Common
stock,
$5.00
par
value;
authorized
20,000,000
shares;
issued:
6,593,435
shares
at
September
30,
2011;
6,546,273
shares
at
December
31,
2010;
and
6,525,010
shares
at
September
30,
2010 32,968 32,732 32,625
Stock
warrant 2,307 2,307 2,307
Surplus 65,741 65,506 65,521
Retained
earnings 13,928 12,960 12,359
Accumulated
other
comprehensive
income
(loss) 2,397 (4,387) (244)
Treasury
stock:
10,484
shares
at
cost (191) (191) (191)
Total
shareholders'
equity 141,014 132,447 135,790
------- ------- -------
Total
liabilities
and
shareholders'
equity $1,485,734 $1,425,012 $1,360,700
========== ========== ==========
VIST FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; in thousands, except share data)
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
2011 2010 2011 2010
---- ---- ---- ----
Interest
and
dividend
income:
Interest
and fees
on loans $13,434 $12,638 $40,920 $37,496
Interest on
securities:
Taxable 3,134 2,691 8,796 8,532
Tax-exempt 311 423 979 1,269
Dividend
income 21 21 65 39
Other
interest
income 21 15 36 289
Total
interest
and
dividend
income 16,921 15,788 50,796 47,625
------ ------ ------ ------
Interest
expense:
Interest on
deposits 3,793 3,954 11,409 12,694
Interest on
short-
term
borrowings 1 - 1 18
Interest on
repurchase
agreements 1,201 1,205 3,564 3,585
Interest on
borrowings - 90 7 277
Interest on
junior
subordinated
debt 410 363 1,223 1,052
Total
interest
expense 5,405 5,612 16,204 17,626
----- ----- ------ ------
Net
interest
income 11,516 10,176 34,592 29,999
Provision
for loan
losses 1,977 3,550 6,067 8,160
Net
interest
income
after
provision
for loan
losses 9,539 6,626 28,525 21,839
----- ----- ------ ------
Non-
interest
income:
Commissions
and fees
from
insurance
sales 3,139 3,024 9,152 9,192
Customer
service
fees 427 478 1,277 1,610
Mortgage
banking
activities 209 266 527 631
Brokerage
and
investment
advisory
commissions
and fees 152 279 489 565
Earnings on
bank owned
life
insurance 119 111 337 302
Other
commissions
and fees 448 402 1,364 1,464
Gain on
sale of
equity
interest - - - 1,875
Loss on
sale of
other real
estate
owned (168) (838) (1,180) (1,432)
Other
(loss)
income (91) 223 (114) 464
Net
realized
gains on
sales of
securities 490 179 872 465
Total
other-
than-
temporary
impairment
losses:
Total
other-
than-
temporary
impairment
losses on
investments 507 (785) 309 (783)
Portion of
loss
recognized
in other
comprehensive
income (1,113) 163 (1,221) 12
Net credit
impairment
loss
recognized
in
earnings (606) (622) (912) (771)
---- ---- ---- ----
Total non-
interest
income 4,119 3,502 11,812 14,365
----- ----- ------ ------
Non-
interest
expense:
Salaries
and
employee
benefits 6,102 5,584 18,002 16,422
Occupancy
expense 1,173 1,057 3,666 3,274
Furniture
and
equipment
expense 670 655 2,064 1,941
Outside
processing
services 926 1,036 2,923 2,921
Professional
services 863 750 2,666 2,104
Marketing
and
advertising
expense 339 285 1,224 792
FDIC
deposit
and other
insurance
expense 215 612 1,440 1,668
Amortization
of
identifiable
intangible
assets 135 146 410 417
Other real
estate
owned
expense 589 687 1,413 1,785
Other
expense 957 967 2,680 2,816
Total non-
interest
expense 11,969 11,779 36,488 34,140
------ ------ ------ ------
Income
(loss)
before
income
taxes 1,689 (1,651) 3,849 2,064
Income tax
expense
(benefit) 270 (1,049) 616 (573)
--- ------ --- ----
Net income
(loss) 1,419 (602) 3,233 2,637
Preferred
stock
dividends
and
discount
accretion 427 420 1,282 1,259
Net income
(loss)
available
to common
shareholders $992 $(1,022) $1,951 $1,378
==== ======= ====== ======
EARNINGS
PER SHARE
DATA
Average
shares
outstanding
for basic
earnings
per common
share 6,579,850 6,511,195 6,571,411 6,192,250
Basic
earnings
per common
share $0.15 $(0.16) $0.30 $0.22
Average
shares
outstanding
for
diluted
earnings
per common
share 6,603,398 6,551,278 6,612,204 6,236,889
Diluted
earnings
per common
share $0.15 $(0.16) $0.30 $0.22
Cash
dividends
declared
per actual
common
shares
outstanding $0.05 $0.05 $0.15 $0.15
Net
interest
margin 3.50% 3.48% 3.63% 3.44%
VIST FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED SELECTED FINANCIAL DATA
(Unaudited; Dollars in thousands)
As Of and For The Three-Month Period Ended
------------------------------------------
September 30, June 30, March 31, December 31, September 30,
2011 2011 2011 2010 2010
---- ---- ---- ---- ----
Loans outstanding $927,850 $933,068 $926,194 $954,363 $927,579
Covered loans
outstanding 57,032 58,954 62,818 66770 n/a
Troubled debt
restructurings
(accruing) 6,683 8,790 11,115 10,772 12,975
Allowance for
loan losses 15,458 15,439 15,283 14,790 14,418
NON-PERFORMING
ASSETS:
--------------
Non-accrual
loans $31,919 $30,273 $28,120 $26,513 $25,938
Loans past due 90
days or more
still accruing 306 215 456 594 196
--- --- --- --- ---
Total non-
performing
loans 32,225 30,488 28,576 27,107 26,134
Other real estate
owned 2,849 2,337 1,769 5,303 3,531
----- ----- ----- ----- -----
Total non-
performing
assets $35,074 $32,825 $30,345 $32,410 $29,665
ASSET QUALITY
STATISTICS:
-------------
Net charge-offs
to average loans
(annualized) 0.84% 0.74% 0.74% 0.75% 0.77%
Allowance for
loan losses as a
percent of loans 1.67% 1.65% 1.65% 1.55% 1.55%
Allowance for
loan losses as a
percent of non-
performing loans 47.97% 50.64% 53.48% 54.56% 55.17%
Allowance for
loan losses as a
percent of non-
performing
assets 44.07% 47.03% 50.36% 45.63% 48.60%
Net charge-offs 1,958 1,704 1,737 1,678 1,957
Non-performing
assets to total
assets * 2.46% 2.35% 2.25% 2.39% 2.18%
NON-PERFORMING
COVERED ASSETS:
----------------
Covered non-
accrual loans $5,739 $5,805 $4,036 $4,408 n/a
Covered other
real estate
owned 596 520 711 247 n/a
* Excludes
covered assets
VIST FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED SELECTED FINANCIAL DATA
(Unaudited; Dollars in thousands)
Average Balance Sheet
---------------------
For the Three For the Nine Months
Months Ended Ended
September 30, September 30,
------------- -------------
2011 2010 2011 2010
---- ---- ---- ----
Assets
Federal funds sold $- $43,386 $7,281 $26,439
Interest bearing deposits in
banks 18,722 113 8,369 23,650
Securities 345,700 263,657 310,405 268,585
Mortgage loans held for sale 1,808 2,645 1,423 1,896
Loans:
Commercial loans 772,297 732,026 771,780 727,123
Consumer loans 106,974 122,261 110,821 126,346
Mortgage loans 47,935 53,120 50,340 50,076
------ ------ ------ ------
Total loans 927,206 907,407 932,941 903,545
Covered loans 58,013 - 59,290 -
Interest earning assets 1,351,449 1,217,208 1,319,709 1,224,115
--------- --------- --------- ---------
Goodwill and intangible assets 45,328 44,357 45,463 44,157
Non interest-earning assets 64,086 65,396 70,616 71,714
Total assets $1,460,863 $1,326,961 $1,435,788 $1,339,986
---------- ---------- ---------- ----------
Liabilities and shareholders' equity
Deposits:
Non-interest
bearing $118,465 $114,340 $119,023 $109,257
Interest bearing:
NOW, money market
and savings 608,012 475,332 573,883 502,360
Time deposits 465,592 453,310 475,716 442,492
-------
Total interest
bearing deposits 1,073,604 928,642 1,049,599 944,852
---------
Total deposits 1,192,069 1,042,982 1,168,622 1,054,109
--------- --------- --------- ---------
Repurchase agreements 104,606 110,499 105,502 112,135
Federal funds purchased 178 20 4,880
Borrowings - 10,000 518 10,366
Junior subordinated debt 18,472 19,294 18,501 19,553
Total interest bearing liabilities 1,196,860 1,068,455 1,174,120 1,091,786
--------- --------- --------- ---------
Non-interest bearing liabilities 7,127 8,265 7,660 8,177
Shareholders' equity 138,411 135,901 134,985 130,766
Total liabilities and shareholders
equity $1,460,863 $1,326,961 $1,435,788 $1,339,986
---------- ---------- ---------- ----------
SOURCE VIST Financial Corp.
