VIST FINANCIAL CORP. 
By WYOMISSING, Pa., Oct. 26 /PRNewswire-FirstCall/ -- VIST Financial Corp. ("Company") (Nasdaq: VIST) reported net income for the nine months ended September 30, 2010 of $2,637,000, a $2,459,000 increase over net income of $178,000 for the same period in 2009. The Company also reported net loss for the three months ended September 30, 2010 of $602,000, a $757,000 decrease over a net income of $155,000 for the same period in 2009.
The Company further 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 5, 2010 payable November 15, 2010.
Commenting on the third quarter 2010, Robert D. Davis, President and Chief Executive Officer of VIST Financial Corp. said, "We are pleased with the progress we are making in our core operating results, however, those positive results continue to be significantly offset by additional credit provisions, elevated other real estate owned ('OREO') expense and non-cash, other than temporary impairment ('OTTI') charges. Consistent with our prior public commentary, the lagging effects of the recession on our national and regional business climate will continue to influence our financial performance for some time to come."
"During the quarter, we experienced strong loan growth of $32 million or 3.6% over the second quarter of this year. We expect this growth to continue through the fourth quarter. Our sales force also generated equally strong core deposit growth."
Davis continued, "We experienced an improvement in our net interest margin which we expect to remain stable through the balance of this year. Importantly, our non-interest, fee-based revenue from retail banking, insurance, residential mortgage, and wealth management businesses represents 32% of our total net revenue."
Commenting on capital strength, Davis continued, "As reported during the second quarter of this year, we raised $5.2 million in new capital through the issuance of 644,000 shares of common stock at $8 per share to two institutional investors who specialize in the banking sector. The Company's capital ratios continue to exceed all regulatory guidelines for a well-capitalized institution."
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
For the nine months ended September 30, 2010, net interest income before the provision for loan losses increased 16.3% to $29,999,000 compared to $25,795,000 for the same period in 2009. The increase in net interest income for the nine months resulted from a 2.0% increase in total interest income to $47,625,000 from $46,678,000 and a 15.6% reduction in total interest expense to $17,626,000 from $20,883,000. For the three months ended September 30, 2010, net interest income before the provision for loan losses increased 12.6% to $10,176,000 compared to $9,041,000 for the same period in 2009. The increase in net interest income for the three months resulted from a 0.2% decrease in total interest income to $15,788,000 from $15,824,000 and a 17.3% decrease in total interest expense to $5,612,000 from $6,783,000.
The increase in total interest income for the nine months ended September 30, 2010 resulted primarily from an increase in average earning assets compared to the same periods in 2009. The decrease in total interest income for the three months ended September 30, 2010 resulted primarily from a decrease in interest rates on mortgage and consumer loans and available for sale investment securities. Average earning assets for the nine and three month periods ended September 30, 2010 increased $76,481,000 and $55,595,000, respectively, compared to the same periods in 2009 due primarily to growth in federal funds sold, available for sale investment securities and commercial loans.
The reduction in total interest expense for the nine and three months ended September 30, 2010 resulted primarily from lower interest rates compared to the same periods in 2009. Average interest-bearing liabilities for the nine and three months ended September 30, 2010 increased $79,180,000 and $46,049,000, respectively, compared to the same periods in 2009. The increases in interest-bearing liabilities are due primarily to an increase in average interest-bearing deposits for the nine and three months ended September 30, 2010 of $122,755,000 and $82,830,000, respectively, offset by a net decrease in average securities sold under agreements to repurchase and average long term borrowings for the nine and three months ended September 30, 2010 of $44,597,000 and $35,449,000, respectively, compared to the same periods in 2009.
The provision for loan losses for the nine months ended September 30, 2010 was $8,160,000 compared to $6,525,000 for the same period in 2009. The provision for loan losses for the three months ended September 30, 2010 was $3,550,000 compared to $1,400,000 for the same period in 2009. As of September 30, 2010, the allowance for loan losses was $14,418,000 compared to $11,449,000 as of December 31, 2009, an annualized increase of 34.6%. The increase in the provision is due primarily to economic conditions and the result of management's evaluation and classification of the credit quality of the loan portfolio utilizing a qualitative and quantitative internal loan review process. At September 30, 2010, total non-performing loans were $26,134,000 or 2.8% of total loans compared to $26,951,000 or 3.0% of total loans at December 31, 2009. The $817,000 decrease in non-performing loans from December 31, 2009 to September 30, 2010, was due primarily to pay-downs and charge-offs of non-performing commercial real estate loans. Management considers the current allowance for loan losses adequate as of September 30, 2010.
Net interest income after the provision for loan losses for the nine months ended September 30, 2010 and 2009 was $21,839,000 and $19,270,000, respectively. Net interest income after the provision for loan losses for the three months ended September 30, 2010 and 2009 was $6,626,000 and $7,641,000, respectively.
For the nine months ended September 30, 2010, the net interest margin on a fully taxable equivalent basis was 3.44% as compared to 3.15% for the same period in 2009. For the three months ended September 30, 2010, the net interest margin on a fully taxable equivalent basis was 3.48% as compared to 3.24% for the same period in 2009 and 3.05% for the second quarter of 2009. The increase in net interest margin for the comparative nine and three month periods ended September 30, 2010 was due mainly to lower cost of funds compared to the same periods in 2009.
Non-Interest Income
Total non-interest income for the nine months ended September 30, 2010 increased 21.9% to $15,843,000 compared to $13,002,000 for the same period in 2009. Total non-interest income for the three months ended September 30, 2010 increased 54.9% to $4,386,000 compared to $2,831,000 for the same period in 2009.
For the nine months ended September 30, 2010, customer service fees decreased to $1,610,000 from $1,854,000, or 13.2%, for the same period in 2009. For the three months ended September 30, 2010, customer service fees decreased to $478,000 from $600,000, or 20.3%, for the same period in 2009. The decrease for the comparative nine and three month periods is due primarily to a decrease in commercial account analysis fees, uncollected funds charges and non-sufficient funds charges.
For the nine months ended September 30, 2010, revenue from mortgage banking activities decreased to $631,000 from $963,000, or 34.5%, for the same period in 2009. For the three months ended September 30, 2010, revenue from mortgage banking activities decreased to $266,000 from $288,000, or 7.6%, for the same period in 2009. The decrease for the comparative nine and three month periods is primarily due to a decrease in the volume of loans sold into the secondary mortgage market. The Company operates its mortgage banking activities through VIST Mortgage, a division of VIST Bank.
For the nine months ended September 30, 2010, revenue from commissions and fees from insurance sales decreased 0.7% to $9,192,000 compared to $9,254,000 for the same period in 2009. For the three months ended September 30, 2010, revenue from commissions and fees from insurance sales decreased 7.2% to $3,024,000 compared to $3,260,000 for the same period in 2009. The decrease for the comparative nine and three month periods is mainly attributed to a decrease in contingency income on insurance products sold through VIST Insurance, LLC, a wholly owned subsidiary of the Company.
For the nine months ended September 30, 2010, revenue from brokerage and investment advisory commissions and fee activity decreased to $565,000 from $594,000, or 4.9%, for the same period in 2009. For the three months ended September 30, 2010, revenue from brokerage and investment advisory commissions and fee activity increased to $279,000 from $112,000, or 149.1%, for the same period in 2009. Fluctuations for the comparative nine and three month periods is due primarily to the volume of investment advisory services offered through VIST Capital Management, LLC, a wholly owned subsidiary of the Company.
For the nine months ended September 30, 2010, earnings on investment in life insurance increased to $302,000 from $280,000, or 7.9%, for the same period in 2009. For the three months ended September 30, 2010, earnings on investment in life insurance increased to $111,000 from $96,000, or 15.6%, for the same period in 2009. The increase for the comparative nine and three month periods is due primarily to increased earnings credited on the Company's bank owned life insurance.
For the nine months ended September 30, 2010, revenue from other commissions and fees increased to $1,464,000 from $1,451,000, or 0.9%, for the same period in 2009. For the three months ended September 30, 2010, revenue from other commissions and fees decreased to $402,000 from $480,000, or 16.3%, for the same period in 2009. The increase for the comparative nine month periods and the decrease for the comparative three month periods is due primarily to the volume of customer debit card transactions processed through the debit card network interchange.
For the nine months ended September 30, 2010, other income including gain on sale of equity interest increased to $2,385,000 from $573,000 for the same period in 2009. For the three months ended September 30, 2010, other income increased to $269,000 from ($75,000) for the same period in 2009. Other income including gain on sale of equity interest increase for the comparative nine month periods is due primarily to a $1,875,000 gain recognized on the sale of a 25% equity interest in First HSA, LLC related to the transfer of approximately $89,000,000 of Health Savings Account ("HSA") deposits in the second quarter of 2010. The increase in other income including gain on sale of equity interest for the comparative three month periods is due primarily to a $272,000 premium paid to the Company resulting from a counterparty exercising a call option to terminate an interest rate swap.
For the nine months ended September 30, 2010, net realized gains on sales of available for sale securities were $465,000 compared to net realized gains on sales of available for sale securities of $351,000 for the same period in 2009. For the three months ended September 30, 2010, net realized gains on sales of available for sale securities were $179,000 compared to net realized gains on sales of available for sale securities of $66,000 for the same period in 2009. The net securities gains are primarily from the planned sale of existing available for sale investment securities.
For the nine months ended September 30, 2010, net credit impairment losses recognized in earnings resulting from other-than-temporary impairment ("OTTI") losses on investment securities were $771,000 compared to net credit impairment losses recognized in earnings resulting from OTTI losses on investment securities of $2,318,000 for the same period in 2009. For the three month period ended September 30, 2010, net credit impairment losses recognized in earnings resulting from OTTI losses on investment securities were $622,000 compared to net credit impairment losses recognized in earnings resulting from OTTI losses on investment securities of $1,996,000 for the same period in 2009. The net credit impairment losses relate to OTTI charges for estimated credit losses on available for sale and held to maturity pooled trust preferred securities. For the nine and three months ended September 30, 2010, the OTTI losses recognized on available for sale and held to maturity pooled trust preferred securities resulted primarily from changes in the underlying cash flow assumptions used in determining credit losses due to the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Non-Interest Expense
Total non-interest expense for the nine months ended September 30, 2010 increased 5.8% to $35,618,000 compared to $33,669,000 for the same period in 2009. Total non-interest expense for the three months ended September 30, 2010 increased 17.0% to $12,663,000 compared to $10,823,000 for the same period in 2009.
Salaries and benefits were $16,422,000 for the nine months ended September 30, 2010, a decrease of 2.3% compared to $16,816,000 for the same period in 2009. Salaries and benefits were $5,584,000 for the three months ended September 30, 2010, an increase of 3.9% compared to $5,374,000 for the same period in 2009. The decrease in salaries and benefits for the comparative nine month periods is due primarily to a decrease in employer 401(k) matching contributions and commissions paid. The increase in salaries and benefits for the comparative three month periods is due primarily to an increase in employee medical insurance costs and the addition of a Chief Information Officer. Included in salaries and benefits for the nine months ended September 30, 2010 and 2009 were stock-based compensation costs of $112,000 and $138,000, respectively. Included in salaries and benefits for the three months ended September 30, 2010 and 2009 were stock-based compensation costs of $36,000 and $61,000, respectively. Total commissions paid for the nine months ended September 30, 2010 and 2009 were $806,000 and $1,081,000, respectively. Total commissions paid for the three months ended September 30, 2010 and 2009 were $310,000 and $345,000, respectively.
For the nine months ended September 30, 2010, occupancy expense and furniture and equipment expense increased to $5,215,000 from $4,919,000, or 6.0%, for the same period in 2009. For the three months ended September 30, 2010, occupancy expense and furniture and equipment expense decreased to $1,712,000 from $1,729,000, or 1.0%, for the same period in 2009. The increase for the comparative nine month periods is due primarily to an increase in building lease expense, equipment maintenance and software maintenance expense.
For the nine months ended September 30, 2010, marketing and advertising expense decreased to $792,000 from $813,000, or 2.6%, for the same period in 2009. For the three months ended September 30, 2010, advertising and marketing expense increased to $285,000 from $208,000, or 37.0%, for the same period in 2009. The decrease for the comparative nine month periods is due primarily to a reduction in marketing costs associated with market research, media space, media production and special events. The increase for the comparative three month periods is due primarily to an increase in marketing costs associated with business development and direct mail initiatives.
For the nine months ended September 30, 2010, professional services expense increased to $2,104,000 from $1,919,000, or 9.6%, for the same period in 2009. For the three months ended September 30, 2010, professional services expense increased to $750,000 from $545,000, or 37.6%, for the same period in 2009. The increase for the comparative nine and three month periods is due primarily to an increase in accounting fees for accounting and accounting related services and consulting fees associated with various corporate projects.
For the nine months ended September 30, 2010, outside processing expense decreased to $2,921,000 from $3,051,000, or 4.3%, for the same period in 2009. For the three months ended September 30, 2010, outside processing expense increased to $1,036,000 from $1,014,000, or 2.2%, for the same period in 2009. The decrease for the comparative nine month periods is due primarily to a decrease in costs incurred for computer services, network fees and data line charges. The increase for the comparative three month periods is due primarily to an increase in costs incurred for computer services, internet banking development and training expenses.
For the nine months ended September 30, 2010, FDIC deposit and other insurance expense decreased to $1,668,000 from $1,914,000, or 12.9%, for the same period in 2009. For the three months ended September 30, 2010, FDIC deposit and other insurance expense increased to $612,000 from $486,000, or 25.9%, for the same period in 2009. The decrease in FDIC deposit and other insurance expense for the comparative nine month periods is due primarily to a $580,000 special industry-wide FDIC deposit insurance premium assessed in 2009. The increase in FDIC deposit and other insurance expense for the comparative three month periods is due primarily to an increase in interest-bearing deposits and time deposits.
For the nine months ended September 30, 2010, OREO expense increased to $3,263,000 from $975,000, or 234.7%, for the same period in 2009. For the three months ended September 30, 2010, OREO expense increased to $1,571,000 from $357,000, or 340.1%, for the same period in 2009. The increase in OREO expense for the comparative nine and three month periods is due primarily to an increase in costs associated with adjusting foreclosed properties to fair value after these assets have been classified as OREO, as well as other costs to operate and maintain OREO property during the holding period.
Income Tax Expense
Income tax benefit for the nine months ended September 30, 2010 was $573,000, a 63.6% decrease as compared to an income tax benefit of $1,575,000 for the nine months ended September 30, 2009. Income tax benefit for the three months ended September 30, 2010 was $1,049,000, a 107.3% increase as compared to an income tax benefit of $506,000 for the three months ended September 30, 2009. The income tax benefit decrease for the comparative nine month periods is due primarily to an increase in net income before income taxes. The income tax benefit increase for the comparative three month periods is due primarily to a decrease in net income before income taxes. Included in income tax expense for the nine and three months ended September 30, 2010 and 2009 is a federal tax benefit from a $5,000,000 investment in an affordable housing, corporate tax credit limited partnership.
Earnings Per Share
Diluted earnings per common share for the nine months ended September 30, 2010 were $0.22 on average shares outstanding of 6,236,889 compared to diluted (loss) per common share of ($0.18) on average shares outstanding of 5,774,006 for the nine months ended September 30, 2009. Diluted (loss) per common share for the three months ended September 30, 2010 were ($0.16) on average shares outstanding of 6,511,195 compared to diluted (loss) per common share of ($0.04) on average shares outstanding of 5,794,883 for the three months ended September 30, 2009. The increase in diluted earnings per share for the comparative nine month periods is due primarily to an increase in net income available to common shareholders. The decrease in diluted earnings per share for the comparative three month periods is due primarily to a decrease in net income available to common shareholders.
Assets, Liabilities and Equity
Total assets as of September 30, 2010 increased $51,981,000, or 5.3% annualized, to $1,360,700,000 compared to $1,308,719,000 at December 31, 2009. Total gross loans as of September 30, 2010 increased $16,615,000, or 2.4% annualized, to $927,579,000 compared to $910,964,000 at December 31, 2009. Total federal funds sold as of September 30, 2010 increased $45,575,000, or 717.0% annualized, to $54,050,000 compared to $8,475,000 at December 31, 2009. Total deposits increased $57,504,000, or 7.5% annualized, to $1,078,402,000 compared to $1,020,898,000 at December 31, 2009 due primarily to an increase in NOW, MMDA and Savings deposits. Total borrowings as of September 30, 2010, decreased $17,957,000, or 15.5% annualized, to $136,897,000 compared to $154,854,000 at December 31, 2009.
Shareholders' equity as of September 30, 2010 increased $10,362,000, or 11.0% annualized, to $135,790,000 compared to $125,428,000 at December 31, 2009. In the second quarter of 2010, the Company completed the issuance of approximately $4.8 million in common stock, net of offering costs. Also included in shareholders' equity is an unrealized loss position on available for sale and held to maturity securities, net of taxes, as of September 30, 2010, of $244,000 compared to an unrealized loss position on available for sale securities, net of taxes, of $4,512,000 at December 31, 2009.
Quarterly Shareholder and Investor Conference Call
VIST Financial will host a quarterly shareholder and investor conference call on Wednesday, October 27, 2010 at 8:30 a.m. EDT. Interested parties can join the conference call and ask questions by dialing 877.303.1593 or listening through the computer by clicking on the following link:
http://tinyurl.com/2d2glfp
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.
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. 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.
VIST FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED SELECTED FINANCIAL DATA
(Dollar amounts in thousands, except share data)
September 30, December 31,
2010 2009
(unaudited)
Assets
Federal funds sold $54,050 $8,475
Investment securities and interest
bearing cash 272,170 271,475
Federal Home Loan Bank stock 5,715 5,715
Mortgage loans held for sale 3,390 1,962
Loans:
Commercial loans 753,825 731,256
Consumer loans 120,219 132,054
Mortgage loans 53,535 47,654
Total loans $927,579 $910,964
Earning assets $1,262,904 $1,198,591
Total assets $1,360,700 $1,308,719
Liabilities and shareholders' equity
Deposits:
Non-interest bearing deposits $110,378 $102,302
NOW, money market and savings 507,340 458,987
Time deposits 460,684 459,609
Total deposits $1,078,402 $1,020,898
Borrowings:
Securities sold under agreements to
repurchase $108,885 $115,196
Long-term debt 10,000 20,000
Junior subordinated debt, at fair value 18,012 19,658
Total borrowings $136,897 $154,854
Total Liabilities $1,224,910 $1,183,291
Shareholders' equity $135,790 $125,428
Total liabilities and shareholders'
equity $1,360,700 $1,308,719
Actual common shares outstanding 6,514,526 5,808,690
Book value per common share $16.90 $17.22
Tangible book value per common share $10.06 $9.62
VIST FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED SELECTED FINANCIAL DATA
(Dollar amounts in thousands, except share data)
Asset Quality Data
As Of and For The Period Ended
------------------------------
Nine Months Twelve Months
September 30, December 31,
2010 2009
(unaudited)
-----------
Non-accrual loans $25,938 $25,140
Loans past due 90 days or more
still accruing 196 1,811
--- -----
Total non-performing loans 26,134 26,951
Other real estate owned 3,531 5,221
----- -----
Total non-performing assets $29,665 $32,172
======= =======
Renegotiated troubled debt $12,975 $6,245
Loans outstanding at end of
period $927,579 $910,964
Allowance for loan losses 14,418 11,449
Net charge-offs to average
loans (annualized) 0.77% 0.58%
Allowance for loan losses as a
percent of total loans 1.55% 1.26%
Allowance for loan losses as a
percent of total non-
performing loans 55.17% 42.49%
VIST FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED SELECTED FINANCIAL DATA
(Dollar amounts in thousands)
Average Balances Average Balances
For the Three Months For the Nine Months
Ended Ended
(unaudited) (unaudited)
----------- -----------
September September September September
30, 30, 30, 30,
2010 2009 2010 2009
---- ---- ---- ----
Assets
Federal funds
sold $43,386 $8,426 $26,439 $9,457
Investment
securities
and interest
bearing cash 263,770 249,503 292,235 239,578
Federal Home
Loan Bank
stock 5,715 5,715 5,715 5,715
Mortgage
loans held
for sale 2,645 2,604 1,901 3,828
Loans:
Commercial
loans 732,027 711,597 727,124 703,738
Consumer
loans 122,260 138,760 126,345 139,844
Mortgage
loans 53,120 45,008 50,071 45,474
------ ------ ------ ------
Total loans $907,407 $895,365 $903,540 $889,056
======== ======== ======== ========
Interest-
earning
assets $1,217,208 $1,161,613 $1,224,115 $1,147,634
Goodwill and
intangible
assets 44,357 44,161 44,157 44,329
Total assets $1,326,961 $1,264,308 $1,339,987 $1,252,164
========== ========== ========== ==========
Liabilities
and
shareholders'
equity
Deposits:
Non-interest
bearing
deposits $114,340 $111,489 $109,257 $107,787
Interest
bearing
deposits:
NOW, money
market and
savings 475,332 401,897 502,361 358,062
Time deposits 453,309 443,914 442,491 464,035
------- ------- ------- -------
Total
Interest-
Bearing
Deposits 928,641 845,811 944,852 822,097
------- ------- ------- -------
Total
deposits $1,042,981 $957,300 $1,054,109 $929,884
========== ======== ========== ========
Short term
borrowings $20 $662 $4,880 $3,576
Securities
sold under
agreements
to
repurchase 110,499 120,948 112,135 121,823
Long-term
debt 10,000 35,000 10,366 45,275
Junior
subordinated
debt, at
fair value 19,294 19,984 19,553 19,835
Interest-
bearing
liabilities 1,068,454 1,022,405 1,091,786 1,012,606
Shareholders'
equity $135,902 $121,985 $130,766 $123,293
======== ======== ======== ========
VIST FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED SELECTED FINANCIAL DATA
(Dollar amounts in thousands, except per share data)
For the Three Months Ended
(unaudited)
September
September 30, 30,
2010 2009
Interest income $15,788 $15,824
Interest expense 5,612 6,783
Net interest income 10,176 9,041
Provision for loan
losses 3,550 1,400
Net Interest Income
after provision
for loan losses 6,626 7,641
Customer service
fees 478 600
Mortgage banking
activities 266 288
Commissions and
fees from
insurance sales 3,024 3,260
Brokerage and
investment
advisory
commissions and
fees 279 112
Earnings on
investment in life
insurance 111 96
Other commissions
and fees 402 480
Other income 269 (75)
Net realized gains
on sales of
securities 179 66
Total other-than-
temporary
impairment losses
on investments 163 (4,026)
Portion of non-
credit impairment
loss recognized in
other
comprehensive loss (785) 2,030
Net credit
impairment loss
recognized in
earnings (622) (1,996)
Total non-interest
income 4,386 2,831
Salaries and
employee benefits 5,584 5,374
Occupancy expense 1,057 1,124
Furniture and
equipment expense 655 605
Other operating
expense 5,367 3,720
Total non-interest
expense 12,663 10,823
Income (loss)
before income
taxes (1,651) (351)
Income tax benefit (1,049) (506)
Net income (loss) (602) 155
Preferred stock
dividends and
discount accretion (420) (412)
Net income (loss)
available to
common
shareholders $(1,022) $(257)
Per Common Share
Data:
Basic average
shares outstanding 6,511,195 5,794,883
Diluted average
shares outstanding 6,511,195 5,794,883
Basic earnings
(loss) per common
share $(0.16) $(0.04)
Diluted earnings
(loss) per common
share (0.16) (0.04)
Cash dividends per
common share 0.05 0.05
Profitability
Ratios:
Return on average
assets -0.18% 0.05%
Return on average
shareholders'
equity -1.76% 0.50%
Return on average
tangible equity
(equity less
goodwill and
intangible assets) -2.61% 0.79%
Average Equity to
Average Assets 10.24% 9.65%
Net interest margin
(fully taxable
equivalent) 3.48% 3.24%
Effective tax rate 63.54% 144.16%
For the Nine Months Ended
(unaudited)
September September
30, 30,
2010 2009
Interest income $47,625 $46,678
Interest expense 17,626 20,883
Net interest income 29,999 25,795
Provision for loan
losses 8,160 6,525
Net Interest Income
after provision
for loan losses 21,839 19,270
Customer service
fees 1,610 1,854
Mortgage banking
activities 631 963
Commissions and
fees from
insurance sales 9,192 9,254
Brokerage and
investment
advisory
commissions and
fees 565 594
Earnings on
investment in life
insurance 302 280
Other commissions
and fees 1,464 1,451
Other income 2,385 573
Net realized gains
on sales of
securities 465 351
Total other-than-
temporary
impairment losses
on investments (783) (4,999)
Portion of non-
credit impairment
loss recognized in
other
comprehensive loss 12 2,681
Net credit
impairment loss
recognized in
earnings (771) (2,318)
Total non-interest
income 15,843 13,002
Salaries and
employee benefits 16,422 16,816
Occupancy expense 3,274 3,074
Furniture and
equipment expense 1,941 1,845
Other operating
expense 13,981 11,934
Total non-interest
expense 35,618 33,669
Income (loss)
before income
taxes 2,064 (1,397)
Income tax benefit (573) (1,575)
Net income (loss) 2,637 178
Preferred stock
dividends and
discount accretion (1,259) (1,237)
Net income (loss)
available to
common
shareholders $1,378 $(1,059)
Per Common Share
Data:
Basic average
shares outstanding 6,192,250 5,774,006
Diluted average
shares outstanding 6,236,889 5,774,006
Basic earnings
(loss) per common
share $0.22 $(0.18)
Diluted earnings
(loss) per common
share 0.22 (0.18)
Cash dividends per
common share 0.15 0.25
Profitability
Ratios:
Return on average
assets 0.26% 0.02%
Return on average
shareholders'
equity 2.70% 0.19%
Return on average
tangible equity
(equity less
goodwill and
intangible assets) 4.07% 0.30%
Average Equity to
Average Assets 9.76% 9.85%
Net interest margin
(fully taxable
equivalent) 3.44% 3.15%
Effective tax rate -27.76% 112.74%
VIST FINANCIAL CORP. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands, except share data)
September 30, September 30,
2010 2009
---- ----
Assets
Cash and due from banks $15,163 $21,825
Federal funds sold 54,050 9,485
Interest-bearing deposits in
banks 31 343
--- ---
Total cash and cash equivalents 69,244 31,653
Mortgage loans held for sale 3,390 2,538
Securities available for sale 270,049 248,811
Securities held to maturity 2,090 3,041
Federal Home Loan Bank stock 5,715 5,715
Loans, net of allowance for loan
losses
9/2010 -$14,418; 9/2009 -
$12,029 913,161 890,384
Premises and equipment, net 5,781 6,177
Identifiable intangible assets 4,265 4,319
Goodwill 40,249 39,982
Bank owned life insurance 19,252 18,832
FDIC prepaid deposit insurance 4,429 -
Other assets 23,075 24,943
------ ------
Total assets $1,360,700 $1,276,395
========== ==========
Liabilities and Shareholders'
Equity
Liabilities
Deposits:
Non-interest bearing $110,378 $109,070
Interest bearing 968,024 858,474
------- -------
Total deposits 1,078,402 967,544
Securities sold under agreements
to repurchase 108,885 120,918
Long-term debt 10,000 35,000
Junior subordinated debt, at
fair value 18,012 19,520
Other liabilities 9,611 8,357
Total liabilities 1,224,910 1,151,339
--------- ---------
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
$1,587 at September 30, 2010
and $1,908 at December 31, 2009 23,413 22,992
Common stock, $5.00 par value;
authorized 20,000,000 shares;
issued:
6,525,010 shares at September
30, 2010 and 5,819,174 shares
at December 31, 2009 32,625 29,043
Stock Warrants 2,307 2,307
Surplus 65,521 63,719
Retained earnings 12,359 12,167
Accumulated other comprehensive
loss (244) (4,981)
Treasury stock: 10,484 shares at
cost (191) (191)
---- ----
Total shareholders' equity 135,790 125,056
Total liabilities and
shareholders' equity $1,360,700 $1,276,395
========== ==========
SELECTED HIGHLIGHTS
Common Stock (VIST)
Cash Dividends
Declared
October
2009 $0.05
January
2010 $0.05
April 2010 $0.05
July 2010 $0.05
October
2010 $0.05
Common Stock (VIST)
Quarterly Closing
Price
09/30/2009 $5.85
12/31/2009 $5.25
03/31/2010 $8.97
06/30/2010 $7.66
09/30/2010 $7.08
VIST FINANCIAL CORP. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollar amounts in thousands, except share data)
Three Months Ended
September 30,
2010 2009
---- ----
Interest Income
Interest and fees on loans $12,638 $12,523
Interest on securities:
Taxable 2,691 2,935
Tax-exempt 423 336
Dividend income 21 26
Other interest income 15 4
Total interest income 15,788 15,824
Interest Expense
Interest on deposits 3,954 4,952
Interest on short-term borrowings 1
Interest on securities sold under
agreements to repurchase 1,205 1,134
Interest on long-term debt 90 339
Interest on junior subordinated debt 363 357
Total interest expense 5,612 6,783
Net interest income 10,176 9,041
Provision for loan losses 3,550 1,400
Net interest income after provision for
loan losses 6,626 7,641
Other income:
Customer service fees 478 600
Mortgage banking activities, net 266 288
Commissions and fees from insurance sales 3,024 3,260
Broker and investment advisory commissions
and fees 279 112
Earnings on investment in life insurance 111 96
Other commissions and fees 402 480
Gain on sale of equity interest
Other income 269 (75)
Net realized gains on sales of securities 179 66
Total other-than-temporary impairment
losses on investments 163 (4,026)
Portion of non-credit impairment loss
recognized
in other comprehensive loss (785) 2,030
----
Net credit impairment loss recognized in
earnings (622) (1,996)
Total non-interest income 4,386 2,831
Other expense:
Salaries and employee benefits 5,584 5,374
Occupancy expense 1,057 1,124
Furniture and equipment expense 655 605
Marketing and advertising expense 285 208
Identifiable intangible amortization 146 172
Professional services 750 545
Outside processing expense 1,036 1,014
FDIC deposit and other insurance expense 612 486
Other real estate owned expense 1,571 357
Other expense 967 938
Total non-interest expense 12,663 10,823
Income (loss) before income taxes (1,651) (351)
Income tax benefit (1,049) (506)
Net income (loss) (602) 155
Preferred stock dividends and discount
accretion (420) (412)
---- ----
Net income (loss) available to common
shareholders $(1,022) $(257)
======= =====
Per Common Share Data
Average shares outstanding 6,511,195 5,794,883
Basic earnings (loss) per common share $(0.16) $(0.04)
Average shares outstanding for diluted
earnings per share 6,511,195 5,794,883
Diluted earnings (loss) per common share $(0.16) $(0.04)
Cash dividends declared per common share $0.05 $0.05
Nine Months Ended
September 30,
2010 2009
---- ----
Interest Income
Interest and fees on loans $37,496 $37,126
Interest on securities:
Taxable 8,532 8,514
Tax-exempt 1,269 927
Dividend income 39 98
Other interest income 289 13
Total interest income 47,625 46,678
Interest Expense
Interest on deposits 12,694 15,278
Interest on short-term borrowings 18 18
Interest on securities sold under
agreements to repurchase 3,585 3,297
Interest on long-term debt 277 1,256
Interest on junior subordinated debt 1,052 1,034
Total interest expense 17,626 20,883
Net interest income 29,999 25,795
Provision for loan losses 8,160 6,525
Net interest income after provision for
loan losses 21,839 19,270
Other income:
Customer service fees 1,610 1,854
Mortgage banking activities, net 631 963
Commissions and fees from insurance sales 9,192 9,254
Broker and investment advisory commissions
and fees 565 594
Earnings on investment in life insurance 302 280
Other commissions and fees 1,464 1,451
Gain on sale of equity interest 1,875
Other income 510 573
Net realized gains on sales of securities 465 351
Total other-than-temporary impairment
losses on investments (783) (4,999)
Portion of non-credit impairment loss
recognized
in other comprehensive loss 12 2,681
Net credit impairment loss recognized in
earnings (771) (2,318)
Total non-interest income 15,843 13,002
Other expense:
Salaries and employee benefits 16,422 16,816
Occupancy expense 3,274 3,074
Furniture and equipment expense 1,941 1,845
Marketing and advertising expense 792 813
Identifiable intangible amortization 417 514
Professional services 2,104 1,919
Outside processing expense 2,921 3,051
FDIC deposit and other insurance expense 1,668 1,914
Other real estate owned expense 3,263 975
Other expense 2,816 2,748
Total non-interest expense 35,618 33,669
Income (loss) before income taxes 2,064 (1,397)
Income tax benefit (573) (1,575)
Net income (loss) 2,637 178
Preferred stock dividends and discount
accretion (1,259) (1,237)
------ ------
Net income (loss) available to common
shareholders $1,378 $(1,059)
====== =======
Per Common Share Data
Average shares outstanding 6,192,250 5,774,006
Basic earnings (loss) per common share $0.22 $(0.18)
Average shares outstanding for diluted
earnings per share 6,236,889 5,774,006
Diluted earnings (loss) per common share $0.22 $(0.18)
Cash dividends declared per common share $0.15 $0.25
SOURCE VIST Financial Corp.
