VIST Financial Corp. Announces First Quarter 2011 Earnings & Cash Dividend

News provided by

VIST Financial Corp.

Apr 26, 2011, 08:30 ET

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)









March 31,

December 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,

June 30,

March 31,


2011

2010

2010

2010

2010











Loans outstanding

$ 926,194

$        954,363

$          927,579

$ 895,584

$ 904,762

Covered loans outstanding

62,818

66,770

n/a

n/a

n/a

Troubled debt restructurings (accruing)

11,115

10,772

12,975

6,333

6,150

Allowance for loan losses

15,283

14,790

14,418

12,825

12,770











NON-PERFORMING ASSETS:








Non-accrual loans

$   28,120

$          26,513

$            25,938

$   22,204

$   23,635

Loans past due 90 days or more still accruing

456

594

196

294

204

   Total non-performing loans

28,576

27,107

26,134

22,498

23,839

Other real estate owned

1,769

5,303

3,531

5,148

7,441

   Total non-performing assets

$   30,345

$          32,410

$            29,665

$   27,646

$   31,280











ASSET QUALITY STATISTICS:








Net charge-offs to average loans (annualized)

0.74%

0.75%

0.77%

0.72%

0.56%

Allowance for loan losses as a percent of loans

1.65%

1.55%

1.55%

1.43%

1.41%

Allowance for loan losses as a percent of non-performing loans

53.48%

54.56%

55.17%

57.02%

53.58%

Allowance for loan losses as a percent of non-performing assets

50.36%

45.63%

48.60%

46.39%

40.82%

Net charge-offs

1,737

1,678

1,957

1,955

1,279

Non-performing assets to total assets *

2.25%

2.39%

2.18%

2.15%

2.34%






















NON-PERFORMING COVERED ASSETS:








Covered non-accrual loans

$     4,036

$            4,408

n/a

n/a

n/a

Covered other real estate owned

711

247

n/a

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.

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