VIST FINANCIAL CORP. 
By 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.
