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

News provided by

VIST Financial Corp.

Jul 26, 2011, 08:30 ET

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,

December 31,

June 30,

2011

2010

2010

Assets




Cash and due from banks    

$      16,719

$          15,443

$      25,357

Federal funds sold

2,021

1,500

7,385

Interest-bearing deposits in banks

140

872

286

Total cash and cash equivalents

18,880

17,815

33,028






Mortgage loans held for sale  

1,536

3,695

3,109

Securities available for sale      

348,256

279,755

261,292

Securities held to maturity  

2,161

2,022

2,086

Federal Home Loan Bank stock

6,416

7,099

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)

917,629

939,573

882,759

Covered loans

58,954

66,770

-

Premises and equipment, net  

6,555

5,639

5,976

Other real estate owned

2,337

5,303

5,148

Covered other real estate owned

520

247

-

Identifiable intangible assets

3,521

3,795

4,411

Goodwill  

41,858

41,858

39,999

Bank owned life insurance

19,590

19,373

19,141

FDIC prepaid deposit insurance

3,023

3,985

4,902

FDIC indemnification asset

6,988

7,003

-

Other assets

19,799

21,080

21,038

Total assets

$ 1,458,023

$     1,425,012

$ 1,288,604






Liabilities and Shareholders' Equity




Liabilities




Deposits:




Non-interest bearing  

$    121,116

$        122,450

$    114,362

Interest bearing  

1,070,306

1,026,830

891,210

Total deposits  

1,191,422

1,149,280

1,005,572

Securities sold under agreements to repurchase

105,131

106,843

110,384

Borrowings

-

10,000

10,000

Junior subordinated debt, at fair value

18,470

18,437

19,308

Other liabilities

6,576

8,005

8,650

Total liabilities  

1,321,599

1,292,565

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

23,749

23,520

23,306

Common stock, $5.00 par value;  authorized 20,000,000 shares

32,931

32,732

32,586

Stock Warrants

2,307

2,307

2,307

Surplus

65,621

65,506

65,466

Retained earnings

13,266

12,960

13,706

Accumulated other comprehensive loss

(1,259)

(4,387)

(2,490)

Treasury stock: 10,484 shares at cost

(191)

(191)

(191)

Total shareholders' equity  

136,424

132,447

134,690

Total liabilities and shareholders' equity

$ 1,458,023

$     1,425,012

$ 1,288,604






Common Stock:




Shares issued

6,586,106

6,546,273

6,517,124

Shares outstanding

6,575,622

6,535,789

6,506,640






VIST FINANCIAL CORP. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

(Dollar amounts in thousands, except share data)





Three Months Ended June 30,  

Six Months Ended 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







June 30,

March 31,

December 31,

September 30,

June 30,


2011

2011

2010

2010

2010











Loans outstanding

$ 933,068

$ 926,194

$        954,363

$          927,579

$ 895,584

Covered loans outstanding

58,954

62,818

66,770

n/a

n/a

Troubled debt restructurings (accruing)

8,790

11,115

10,772

12,975

6,333

Allowance for loan losses

15,439

15,283

14,790

14,418

12,825











NON-PERFORMING ASSETS:









Non-accrual loans

$   30,273

$   28,120

$          26,513

$            25,938

$   22,204

Loans past due 90 days or more still accruing

215

456

594

196

294

Total non-performing loans

30,488

28,576

27,107

26,134

22,498

Other real estate owned

2,337

1,769

5,303

3,531

5,148

Total non-performing assets

$   32,825

$   30,345

$          32,410

$            29,665

$   27,646











ASSET QUALITY STATISTICS:









Net charge-offs to average loans (annualized)

0.74%

0.74%

0.75%

0.77%

0.72%

Allowance for loan losses as a percent of loans

1.65%

1.65%

1.55%

1.55%

1.43%

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

50.64%

53.48%

54.56%

55.17%

57.02%

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

47.03%

50.36%

45.63%

48.60%

46.39%

Net charge-offs

1,704

1,737

1,678

1,957

1,955

Non-performing assets to total assets *

2.35%

2.25%

2.39%

2.18%

2.15%






















NON-PERFORMING COVERED ASSETS:









Covered non-accrual loans

$     5,805

$     4,036

$            4,408

n/a

n/a

Covered other real estate owned

520

711

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 Ended

For the Six Months 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.

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