LegacyTexas Financial Group, Inc. - FORM 8-K - EX-99.1 - EXHIBIT

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8-K - 8-K - LegacyTexas Financial Group, Inc.	a8kcoverq42012earningsands.htm
EX-99.2 - EXHIBIT - LegacyTexas Financial Group, Inc.	ex9924q2012vpfgearningss.htm

EXHIBIT 99.1

FOR IMMEDIATE RELEASE

February 7, 2013

Contact: Patti McKee

ViewPoint Financial Group, Inc.

972-578-5000, Ext. 7223

ViewPoint Financial Group, Inc. Reports Fourth Quarter and Full Year 2012 Earnings

Loan Growth and Lower Deposit Cost Drives 64 Basis Point Increase in Net Interest Margin to 3.77%

PLANO, Texas, February 7, 2013 -- ViewPoint Financial Group, Inc. (NASDAQ: VPFG) (the “Company”), the holding company for ViewPoint Bank, N.A. (the “Bank”), today announced fourth quarter net income of $10.4 million, an increase of $587,000, or 6%, from $9.8 million for the fourth quarter of 2011. Net income for the year ended December 31, 2012, was a record $35.2 million, an increase of $8.9 million, or 34%, from net income of $26.3 million for the year ended December 31, 2011. Basic and diluted earnings per share of $0.98 for the year ended December 31, 2012, was an increase of $0.17 from $0.81 for the year ended December 31, 2011.

2012 Performance Highlights


•	Net interest margin expanded to 3.77% for the fourth quarter of 2012 and to 3.61% for the year


•	Loans held for investment increased 38% and loans held for sale increased 27% from 2011, reflecting linked quarter increases of 2% and 5%, respectively


•	Basic EPS of $0.28 for the fourth quarter of 2012 and annual EPS for 2012 of $0.98


•	Strong capitalization with tangible common equity of $490 million, or 13% of tangible assets

“2012 was an exciting year in the company’s 60-year history,” said President and CEO Kevin Hanigan. “We posted record earnings once again, dramatically increased commercial lending and improved on all our profitability metrics, most notably the net interest margin—all while in the midst of a merger. In addition, most of our loan growth was organic—it came from originations, rather than through the merger. And finally, in the fourth quarter, we made investments in our infrastructure and our employees in order to position ourselves for long-term growth."

Financial Highlights



	At or For the Quarters Ended
	December			September			December
(unaudited)	2012			2012			2011
	(Dollars in thousands, except share or per share amounts)
Net interest income	$	31,528		$	31,619		$	24,157
Provision (credit) for loan losses	(17		)	814			1,229
Non-interest income	6,494			7,819			10,238
Non-interest expense	21,705			21,210			19,544
Income tax expense	5,973			6,098			3,848
Net income	$	10,361		$	11,316		$	9,774

Basic earnings per common share	$	0.28		$	0.30		$	0.31
Weighted average common shares outstanding - basic	37,460,539			37,362,535			31,617,219
Estimated Tier 1 risk-based capital ratio¹	21.67		%	22.16		%	24.40		%
Tangible common equity to tangible assets - Non-GAAP ²	13.48			13.45			12.74
Net interest margin	3.77			3.70			3.13

¹ Calculated at the ViewPoint Financial Group, Inc. level, which is subject to the capital adequacy requirements of the Federal Reserve.

² See the section labeled "Supplemental Information- Non-GAAP Financial Measures" at the end of this document.

Net Interest Income and Net Interest Margin



	At or For the Quarters Ended
	December			September			December
(unaudited)	2012			2012			2011
	(Dollars in thousands)
Net interest income	$	31,528		$	31,619		$	24,157
Net interest margin	3.77		%	3.70		%	3.13		%
Selected average balances:
Total earning assets	$	3,341,960		$	3,414,701		$	3,089,337
Total loans	2,556,806			2,450,143			1,897,756
Total securities	734,598			914,818			1,147,794
Total deposits	2,180,354			2,183,998			2,007,715
Total borrowings	770,627			863,949			750,202
Total non-interest-bearing deposits	358,707			338,074			204,458

Fourth quarter net interest income was $31.5 million, a $7.4 million increase from the fourth quarter of 2011 and a $91,000 decrease from the third quarter of 2012. The increase from the fourth quarter of 2011 was primarily due to an $8.1 million increase in interest income on loans, as the average balance of loans increased by $659.1 million, or 35%. The increase in average loan balances was driven by a $248.5 million increase in commercial real estate, a $225.6 million increase in commercial and industrial and a $171.9 million increase in loans held for sale. Accretion associated with the Highlands acquisition contributed $1.1 million to the increase in the comparable periods. The increase in interest income on loans was partially offset by a $3.1 million decline in interest income earned on securities, as the average balance of the securities portfolio declined by $413.2 million, or 36%, during the fourth quarter of 2012 compared to the same period in 2011.

Interest expense for the fourth quarter of 2012 decreased by $2.2 million, or 31%, primarily due to lower interest expense paid on deposits. The average rate of interest-bearing demand deposits declined 96 basis points, from 1.39% for the quarter ended

December 31, 2011, to 0.43% for the quarter ended December 31, 2012, resulting in a $1.2 million decrease in interest expense. Additionally, interest expense on time accounts decreased by $963,000, as a result of an $89.4 million decline in the average balance during the quarter ended December 31, 2012, compared to the same period in 2011, and a 52 basis point decline in the average rate for the same periods. Deposit costs have continued to decline due to rate reductions in Absolute Checking and other interest-bearing accounts.

The $91,000 decline in net interest income for the fourth quarter of 2012 compared to the third quarter of 2012 was primarily due to a $72.7 million decrease in average earning assets for the comparable periods. The average balance of the securities portfolio declined by $180.2 million during the fourth quarter of 2012, resulting in a $1.0 million decline in interest income. This decline was offset by solid growth in the average balances of the commercial and industrial and commercial real estate loan portfolios, which increased by $71.0 million and $42.8 million, respectively, leading to a $708,000, or 5%, increase in the interest income earned on these two portfolios.

The net interest margin for the fourth quarter of 2012 was 3.77%, a 64 basis point increase from the fourth quarter of 2011 and a seven basis point increase from the third quarter of 2012. The increase in the net interest margin was primarily attributable to changes in the earning asset mix, lower deposit and borrowing rates paid, and 12 basis points of accretion related to the Highlands acquisition.

Non-interest Income

Fourth quarter non-interest income was $6.5 million, a $3.7 million decrease from the fourth quarter of 2011 and a $1.3 million decrease from the third quarter of 2012. The decrease from the fourth quarter of 2011 was primarily attributable to a gain on the sale of available for sale securities in the 2011 period, with no comparable gain in the 2012 period. Additionally, net gain on the sale of mortgage loans decreased due to the sale of ViewPoint Mortgage ("VPM").

Non-interest Expenses

Fourth quarter non-interest expense was $21.7 million, a $2.2 million increase from the fourth quarter of 2011 and a $495,000 increase from the third quarter of 2012. During 2012, we added experienced staff through the Highlands acquisition, as well as new hires, which increased salary and benefits expense. This increase was partially offset by salary and benefits savings resulting from the sale of VPM. During the fourth quarter of 2012, the Company continued its growth strategy by adding high level revenue producers in lending and treasury management, increasing its performance-based compensation resulting from improvements in all performance metrics, and improving our franchise by investing in marketing, branding awareness and technology.

Financial Condition

Total loans held for investment increased by $462.7 million, or 38%, from December 31, 2011, reflecting a 2% increase from the linked quarter. Loans held for sale increased by $226.4 million, or 27%, from December 31, 2011, reflecting a 5% increase from the linked quarter. $239.8 million of the increase in loans held for investment was due to organic growth, while $222.9 million was due to the Highlands acquisition. Compared to December 31, 2011, commercial real estate loans increased by $254.6 million, or 44%, reflecting a 6% increase from the linked quarter, while commercial and industrial loans increased by $207.9 million, or 294%, reflecting a 10% increase from the linked quarter. Commercial real estate and commercial and industrial loans increased a combined 7% from the linked quarter.

Total deposits increased by $214.3 million, or 11%, to $2.18 billion at December 31, 2012, from $1.96 billion at December 31, 2011, including $378.4 million in deposits acquired from Highlands. On a linked quarter basis, deposits declined by $15.1 million, or 1%. The decline in time deposits resulted from a pricing strategy designed to reduce our time deposit rates and improve our net interest margin and was partially offset by growth in non-interest-bearing demand accounts.

Total shareholders' equity increased by $114.6 million, or 28%, to $520.9 million at December 31, 2012, from $406.3 million at December 31, 2011, primarily due to the Highlands acquisition. The Company's tangible common equity ratio was 13.48% at December 31, 2012, an increase of 74 basis points from December 31, 2011, and an increase of three basis points from September 30, 2012.

Credit Quality



	At or For the Quarters Ended
	December			September			December
(unaudited)	2012			2012			2011
	(Dollars in thousands)
Net charge-offs	$	1,767		$	208		$	277
Net charge-offs/Average loans held for investment	0.43		%	0.05		%	0.10		%
Provision (credit) for loan losses	$	(17	)	$	814		$	1,229
Non-performing loans ("NPLs")	27,203			28,081			23,098
NPLs/Total loans held for investment ¹	1.61		%	1.70		%	1.88		%
Non-performing assets ("NPAs")	$	29,104		$	31,931		$	25,391
NPAs/Total assets	0.79		%	0.88		%	0.80		%
NPAs/Loans held for investment and foreclosed assets	1.72			1.93			2.06
Allowance for loan losses	$	18,051		$	19,835		$	17,487
Allowance for loan losses/Total loans held for investment ¹	1.07		%	1.20		%	1.42		%
Allowance for loan losses/Total loans held for investment excluding acquired loans ²	1.23			1.41			1.42
Allowance for loan losses/NPLs ¹	66.36			70.63			75.71

¹The December and September 2012 periods reflect the impact of loans acquired in the Highlands acquisition, which were initially recorded at fair value, with no allocated allowance for loan losses.

²Total loans held for investment for the December and September 2012 periods exclude loans acquired from Highlands, which were initially recorded at fair value.

Our non-performing loans to total loans ratio at December 31, 2012, was 1.61%, compared to 1.88% at December 31, 2011, and 1.70% at September 30, 2012. Non-performing loans increased by $4.1 million to $27.2 million at December 31, 2012, from $23.1 million at December 31, 2011. Of the $27.2 million, $5.4 million consisted of loans acquired from Highlands, including three commercial lines of credit totaling $2.8 million. Non-performing loans decreased by $878,000 from September 30, 2012, primarily due to a $3.0 million improvement in commercial real estate non-performing loans.

Net charge-offs totaled $1.8 million for the fourth quarter of 2012, compared to $277,000 for the fourth quarter of 2011 and $208,000 for the third quarter of 2012. Of the $1.8 million, $1.1 million was related to loans acquired from Highlands (initially recorded at fair value), which had additional credit deterioration after acquisition. We feel our credit quality has improved due to continued improvement in economic conditions in our market areas, enhancements in loan underwriting and oversight, as well as the addition of highly experienced lending staff over the past year, both through the Highlands acquisition and new hires.

Subsequent Events

The Company is required under generally accepted accounting principles to evaluate subsequent events through the filing of its consolidated financial statements for the year ended December 31, 2012, on Form 10-K. As a result, the Company will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of December 31, 2012, and will adjust amounts preliminarily reported, if necessary.

Conference Call

The Company will also host an investor conference call to review these results on Friday, February 8, 2013, at 10 a.m. Central Time. Participants are asked to call (toll-free) 1-888-317-6016 at least five minutes prior to the call. International participants are asked to call 1-412-317-6016 and participants in Canada are asked to call (toll-free) 1-855-669-9657. The call and corresponding presentation slides will be webcast live on the home page of the Company's website, www.viewpointfinancialgroup.com. An audio replay will be available one hour after the conclusion of the call at

1-877-344-7529, Conference #10023601. This replay, as well as the webcast, will be available until the Company's next quarterly webcast/conference call.

About ViewPoint Financial Group, Inc.

ViewPoint Financial Group, Inc. is the holding company for ViewPoint Bank, N.A. ViewPoint Bank, N.A. operates 31 community bank offices, including two First National Bank of Jacksboro locations in Jack and Wise Counties. For more information, please visit www.viewpointbank.com or www.viewpointfinancialgroup.com.

When used in filings by the Company with the Securities and Exchange Commission (the “SEC”) in the Company's press releases or other public or shareholder communications, and in oral statements made with the approval of an authorized executive officer, the words or phrases “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “intends” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties, including, among other things: changes in economic conditions; legislative changes; changes in policies by regulatory agencies; fluctuations in interest rates; the risks of lending and investing activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for loan losses; the Company's ability to access cost-effective funding; fluctuations in real estate values and both residential and commercial real estate market conditions; demand for loans and deposits in the Company's market area; the industry-wide decline in mortgage production; competition; changes in management's business strategies; our ability to successfully integrate any assets, liabilities, customers, systems and management personnel we have acquired or may acquire into our operations and our ability to realize related revenue synergies and cost savings within expected time frames and any goodwill charges related thereto; and other factors set forth under Risk Factors in the Company's Form 10-K that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. The factors listed above could materially affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements.

The Company does not undertake - and specifically declines any obligation - to publicly release the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances occurring after the date of such statements.

Consolidated Balance Sheets



	December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012			December 31, 2011
	(Dollars in thousands)
ASSETS	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Cash and due from financial institutions	$	34,227		$	24,429		$	30,407		$	16,507		$	16,661
Short-term interest-bearing deposits in other financial institutions	34,469			36,301			39,571			28,000			29,687
Total cash and cash equivalents	68,696			60,730			69,978			44,507			46,348
Securities available for sale, at fair value	287,034			316,780			467,515			411,515			433,745
Securities held to maturity	360,554			396,437			430,368			465,957			500,488
Total securities	647,588			713,217			897,883			877,472			934,233
Loans held for sale	1,060,720			1,014,445			925,637			734,408			834,352
Loans held for investment	1,690,769			1,651,639			1,600,556			1,256,113			1,228,028
Gross loans	2,751,489			2,666,084			2,526,193			1,990,521			2,062,380
Less: allowance for loan losses and deferred fees on loans held for investment	(17,565		)	(19,719		)	(18,822		)	(17,627		)	(16,971		)
Net loans	2,733,924			2,646,365			2,507,371			1,972,894			2,045,409
FHLB and Federal Reserve Bank stock, at cost	45,025			43,383			45,241			32,924			37,590
Bank-owned life insurance	34,916			34,701			34,491			29,116			29,007
Premises and equipment, net	53,160			53,348			53,725			49,721			50,261
Goodwill	29,650			29,650			29,203			818			818
Other assets	50,099			54,639			54,964			33,660			36,912
Total assets	$	3,663,058		$	3,636,033		$	3,692,856		$	3,041,112		$	3,180,578
LIABILITIES AND SHAREHOLDERS’ EQUITY
Non-interest-bearing demand	$	357,800		$	349,880		$	342,228		$	231,768		$	211,670
Interest-bearing demand	488,748			471,672			509,650			488,807			498,253
Savings and money market	880,924			897,515			885,550			762,089			759,576
Time	450,334			473,834			491,978			450,955			493,992
Total deposits	2,177,806			2,192,901			2,229,406			1,933,619			1,963,491
FHLB advances	892,208			852,168			875,102			632,512			746,398
Repurchase agreement and other borrowings	25,000			25,000			38,682			25,000			25,000
Accrued expenses and other liabilities	47,173			49,611			44,091			37,376			39,380
Total liabilities	3,142,187			3,119,680			3,187,281			2,628,507			2,774,269

Shareholders’ equity
Common stock	396			396			393			337			337
Additional paid-in capital	372,168			369,904			367,938			280,139			279,473
Retained earnings	164,328			161,887			153,722			149,585			144,535
Accumulated other comprehensive income, net	1,895			2,449			2,171			1,560			1,347
Unearned Employee Stock Ownership Plan (ESOP) shares	(17,916		)	(18,283		)	(18,649		)	(19,016		)	(19,383		)
Total shareholders’ equity	520,871			516,353			505,575			412,605			406,309
Total liabilities and shareholders’ equity	$	3,663,058		$	3,636,033		$	3,692,856		$	3,041,112		$	3,180,578

Consolidated Statements of Income



	Year Ended
	December 31,
	2012			2011			2010
	(Dollars in thousands, except share and per share data)
Interest and dividend income	(unaudited)
Loans, including fees	$	120,596		$	88,238		$	88,550
Taxable securities	14,850			25,830			24,837
Nontaxable securities	1,891			1,892			1,528
Interest-bearing deposits in other financial institutions	117			170			402
FHLB and Federal Reserve Bank stock	538			94			68
	137,992			116,224			115,385
Interest expense
Deposits	11,453			22,474			31,015
FHLB advances	9,807			9,882			11,723
Repurchase agreement	876			816			816
Other borrowings	33			474			599
	22,169			33,646			44,153
Net interest income	115,823			82,578			71,232
Provision for loan losses	3,139			3,970			5,119
Net interest income after provision for loan losses	112,684			78,608			66,113
Non-interest income
Service charges and fees	19,512			18,556			18,505
Other charges and fees	579			723			711
Net gain on sale of mortgage loans	5,436			7,639			13,041
Bank-owned life insurance income	699			506			384
Gain on sale of available for sale securities	1,014			6,268			—
Loss on sale and disposition of assets	(191		)	(798		)	(365		)
Impairment of goodwill	(818		)	(271		)	—
Other	3,325			1,925			1,188
	29,556			34,548			33,464
Non-interest expense
Salaries and employee benefits	51,719			47,360			46,203
Acquisition costs	4,127			—			—
Advertising	1,753			1,519			1,285
Occupancy and equipment	7,365			5,966			5,907
Outside professional services	2,320			2,644			2,369
Regulatory assessments	2,534			2,401			3,235
Data processing	6,109			4,648			4,232
Office operations	7,144			5,972			5,790
Other	4,619			4,730			4,125
	87,690			75,240			73,146
Income before income tax expense	54,550			37,916			26,431
Income tax expense	19,309			11,588			8,632
Net income	$	35,241		$	26,328		$	17,799
Weighted average common shares outstanding- basic	35,879,704			32,219,841			30,128,985



Weighted average common shares outstanding- diluted	35,998,345			32,283,107		30,131,960
Per share information:
Basic	$	0.98		$	0.81	$	0.59
Diluted	0.98			0.81		0.59
Cash dividends declared per share	0.40		¹	0.20		0.16

¹ Five dividends were paid in 2012, including the $0.10 per share prepayment of the dividend for the first quarter of 2013

Consolidated Quarterly Statements of Income (unaudited)



	For the Quarters Ended														Fourth Quarter 2012 Compared to:
	Dec 31, 2012			Sep 30, 2012		Jun 30, 2012			Mar 31, 2012			Dec 31, 2011			Third Quarter 2012					Fourth Quarter 2011
Interest and dividend income	(Dollars in thousands)
Loans, including fees	$	33,247		$	32,739	$	30,290		$	24,320		$	25,106		$	508		1.6	%	$	8,141		32.4	%
Taxable securities	2,591			3,616		4,185			4,458			5,690			(1,025		)	(28.3	)	(3,099		)	(54.5	)
Nontaxable securities	472			473		473			473			473			(1		)	(0.2	)	(1		)	(0.2	)
Interest-bearing deposits in other financial institutions	31			29		38			19			26			2			6.9		5			19.2
FHLB and Federal Reserve Bank stock	140			151		141			106			42			(11		)	(7.3	)	98			233.3
	36,481			37,008		35,127			29,376			31,337			(527		)	(1.4	)	5,144			16.4
Interest expense
Deposits	2,321			2,656		3,247			3,229			4,429			(335		)	(12.6	)	(2,108		)	(47.6	)
FHLB advances	2,423			2,515		2,415			2,454			2,522			(92		)	(3.7	)	(99		)	(3.9	)
Repurchase agreement	205			217		251			203			205			(12		)	(5.5	)	—			—
Other borrowings	4			1		28			—			24			3			300.0		(20		)	(83.3	)
	4,953			5,389		5,941			5,886			7,180			(436		)	(8.1	)	(2,227		)	(31.0	)
Net interest income	31,528			31,619		29,186			23,490			24,157			(91		)	(0.3	)	7,371			30.5
Provision (credit) for loan losses	(17		)	814		1,447			895			1,229			(831		)	(102.1	)	(1,246		)	(101.4	)
Net interest income after provision for loan losses	31,545			30,805		27,739			22,595			22,928			740			2.4		8,617			37.6
Non-interest income
Service charges and fees	5,562			4,885		4,827			4,238			4,529			677			13.9		1,033			22.8
Other charges and fees	142			144		165			128			179			(2		)	(1.4	)	(37		)	(20.7	)
Net gain on sale of mortgage loans	—			1,030		2,174			2,232			2,101			(1,030		)	(100.0	)	(2,101		)	(100.0	)
Bank-owned life insurance income	216			210		165			109			103			6			2.9		113			109.7
Gain on sale of available for sale securities	—			898		116			—			2,853			(898		)	(100.0	)	(2,853		)	(100.0	)
Gain (loss) on sale and disposition of assets	(241		)	187		(56		)	(81		)	(49		)	(428		)	(228.9	)	(192		)	391.8
Impairment of goodwill	—			—		(818		)	—			—			—			—		—			—
Other	815			465		1,940			104			522			350			75.3		293			56.1
	6,494			7,819		8,513			6,730			10,238			(1,325		)	(16.9	)	(3,744		)	(36.6	)



Non-interest expense
Salaries and employee benefits	13,200		12,685		14,110		11,724		12,213		515			4.1		987		8.1
Acquisition costs	—		242		3,741		144		—		(242		)	(100.0	)	—		—
Advertising	599		379		490		285		302		220			58.0		297		98.3
Occupancy and equipment	1,934		2,009		1,952		1,470		1,633		(75		)	(3.7	)	301		18.4
Outside professional services	568		578		691		483		518		(10		)	(1.7	)	50		9.7
Regulatory assessments	661		668		624		581		535		(7		)	(1.0	)	126		23.6
Data processing	1,717		1,530		1,617		1,245		1,282		187			12.2		435		33.9
Office operations	1,831		1,834		1,934		1,545		1,520		(3		)	(0.2	)	311		20.5
Other	1,195		1,285		1,164		975		1,541		(90		)	(7.0	)	(346	)	(22.5	)
	21,705		21,210		26,323		18,452		19,544		495			2.3		2,161		11.1
Income before income tax expense	16,334		17,414		9,929		10,873		13,622		(1,080		)	(6.2	)	2,712		19.9
Income tax expense	5,973		6,098		3,437		3,801		3,848		(125		)	(2.0	)	2,125		55.2
Net income	$	10,361	$	11,316	$	6,492	$	7,072	$	9,774	$	(955	)	(8.4	)%	587		6.0	%

Selected Financial Highlights (unaudited)



	At Or For The Quarters Ended										At or For the Years Ended
	December				September			December			December			December
	2012				2012			2011			2012			2011
	(Dollars in thousands, except share and per share amounts)
SHARE DATA:
Basic earnings per common share	$	0.28			$	0.30		$	0.31		$	0.98		$	0.81
Diluted earnings per common share	$	0.27			$	0.30		$	0.31		$	0.98		$	0.81
Dividends declared per share	$	0.20		¹	$	0.08		$	0.05		$	0.40		$	0.20
Total shareholders' equity	$	520,871			$	516,353		$	406,309		$	520,871		$	406,309
Common shareholders' equity per share (book value per share)	$	13.15			$	13.05		$	12.06		$	13.15		$	12.06
Tangible book value per share- Non-GAAP²	$	12.36			$	12.25		$	12.02		$	12.36		$	12.02
Market value per share for the quarter:
High	$	21.80			$	19.50		$	13.29		$	21.80		$	13.29
Low	$	19.30			$	15.88		$	11.16		$	19.30		$	11.16
Close	$	20.94			$	19.17		$	13.01		$	20.94		$	13.01
Shares outstanding at end of period	39,612,911				39,579,667			33,700,399			39,612,911			33,700,399
Weighted average common shares outstanding- basic	37,460,539				37,362,535			31,617,219			35,879,704			32,219,841
Weighted average common shares outstanding- diluted	37,592,618				37,466,031			31,681,326			35,998,345			32,283,107
KEY RATIOS:
Return on average common shareholders' equity	7.96		%		8.82		%	9.63		%	7.23		%	6.45		%
Return on average assets	1.17				1.25			1.22			1.04			0.89
Efficiency ratio³	57.31				55.37			62.27			61.32			67.81
Estimated Tier 1 risk-based capital ratio⁴	21.67				22.16			24.40			21.67			24.40
Estimated total risk-based capital ratio⁴	22.47				23.08			25.46			22.47			25.46
Estimated Tier 1 leverage ratio⁴	13.97				13.54			12.58			13.97			12.58
Tangible equity to tangible assets- Non-GAAP²	13.48				13.45			12.74			13.48			12.74
Number of employees- full-time equivalent	557				555			584			557			584

¹ Two dividend payments of $0.10 each

² See the section labeled "Supplemental Information- Non-GAAP Financial Measures" at the end of this document.

³ Calculated by dividing total non-interest expense by net interest income plus non-interest income, excluding gain (loss) on foreclosed assets, impairment of goodwill, gains from securities transactions and other non-recurring items.

⁴ Calculated at the ViewPoint Financial Group, Inc. level, which is subject to the capital adequacy requirements of the Federal Reserve.



	Ending Balances at
	December 31, 2012		September 30, 2012		June 30, 2012		March 31, 2012		December 31, 2011
Loans:	(Dollars in thousands)
Loans held for sale	$	1,060,720	$	1,014,445	$	925,637	$	734,408	$	834,352
Commercial real estate	839,908		794,619		760,609		624,057		585,328
Commercial and industrial loans:
Commercial	245,799		226,391		180,706		51,244		54,479
Warehouse lines of credit	32,726		25,936		16,965		19,072		16,141



Total commercial and industrial loans	278,525			252,327			197,671			70,316			70,620
Consumer:
One- to four-family real estate	378,255			400,951			435,486			372,070			379,944
Home equity/home improvement	135,001			141,152			144,147			139,339			140,966
Other consumer loans	59,080			62,590			62,643			50,331			51,170
Total consumer	572,336			604,693			642,276			561,740			572,080
Gross loans held for investment	1,690,769			1,651,639			1,600,556			1,256,113			1,228,028
Gross loans	$	2,751,489		$	2,666,084		$	2,526,193		$	1,990,521		$	2,062,380
Non-performing assets:
Commercial real estate	$	13,609		$	16,572		$	16,378		$	15,774		$	16,076
Commercial and industrial	5,401			4,597			873			467			430
One- to four-family real estate	6,854			5,142			4,158			4,987			5,340
Home equity/home improvement	1,077			1,519			1,112			1,170			1,226
Other consumer loans	262			251			36			29			26
Total non-performing loans	27,203			28,081			22,557			22,427			23,098
Foreclosed assets	1,901			3,850			3,323			2,021			2,293
Total non-performing assets	$	29,104		$	31,931		$	25,880		$	24,448		$	25,391
Total non-performing assets to total assets	0.79		%	0.88		%	0.70		%	0.80		%	0.80		%
Total non-performing loans to total loans held for investment	1.61		%	1.70		%	1.41		%	1.79		%	1.88		%
Allowance for loan losses to non-performing loans	66.36		%	70.63		%	85.25		%	80.36		%	75.71		%
Allowance for loan losses to total loans held for investment	1.07		%	1.20		%	1.20		%	1.43		%	1.42		%
Allowance for loan losses to total loans held for investment excluding acquired loans	1.23		%	1.41		%	1.47		%	1.43		%	1.42		%
Troubled debt restructured loans ("TDRs"):
Performing TDRs:
Commercial real estate	$	3,384		$	3,087		$	3,087		$	3,087		$	2,860
Commercial and industrial	207			213			20			21			26
One- to four-family real estate	509			682			498			374			136
Home equity/home improvement	49			106			45			106			107
Other consumer loans	67			88			107			121			142
Total performing TDRs	$	4,216		$	4,176		$	3,757		$	3,709		$	3,271
Non-performing TDRs:
Commercial real estate	$	11,218		$	8,849		$	8,952		$	9,063		$	9,266
Commercial and industrial	102			105			281			287			212
One- to four-family real estate	1,951			1,709			1,103			1,093			843
Home equity/home improvement	284			234			75			77			81
Other consumer loans	205			88			—			13			18
Total non-performing TDRs	$	13,760		$	10,985		$	10,411		$	10,533		$	10,420
Allowance for loan losses:
Balance at beginning of period	$	19,835		$	19,229		$	18,023		$	17,487		$	16,535
Provision expense (credit)	(17		)	814			1,447			895			1,229
Charge-offs	(1,936		)	(412		)	(358		)	(496		)	(408		)
Recoveries	169			204			117			137			131
Balance at end of period	$	18,051		$	19,835		$	19,229		$	18,023		$	17,487



Net charge-offs (recoveries)
Commercial real estate	$	185	$	2		$	—	$	—	$	—
Commercial and industrial	893		(31		)	10		192		(18		)
One- to four-family real estate	324		15			57		77		161
Home equity/home improvement	113		79			63		—		72
Other consumer loans	252		143			111		90		62
Total net charge-offs	$	1,767	$	208		$	241	$	359	$	277

Average Balances and Yields/Rates (unaudited)



	For the Quarters Ended
	December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012			December 31, 2011
Loans:	(Dollars in thousands)
Commercial real estate	$	805,362		$	762,521		$	724,775		$	582,710		$	556,909
Commercial and industrial loans:
Commercial	251,447			183,870			169,567			53,654			46,130
Warehouse lines of credit	26,072			22,639			16,013			15,865			5,796
One- to four-family real estate	386,424			407,216			430,696			371,257			377,106
Home equity/home improvement	137,789			143,125			145,095			140,754			140,000
Other consumer loans	60,435			63,142			62,192			50,635			51,225
Loans held for sale	908,603			886,743			681,095			661,688			736,745
Less: deferred fees and allowance for loan loss	(19,326		)	(19,113		)	(17,803		)	(16,812		)	(16,155		)
Loans receivable	2,556,806			2,450,143			2,211,630			1,859,751			1,897,756
Securities	734,598			914,818			976,611			950,906			1,147,794
Overnight deposits	50,556			49,740			33,241			33,809			43,787
Total interest-earning assets	$	3,341,960		$	3,414,701		$	3,221,482		$	2,844,466		$	3,089,337
Deposits:
Interest-bearing demand	$	463,465		$	474,342		$	505,569		$	473,687		$	485,897
Savings and money market	888,410			894,916			892,844			759,590			758,191
Time	469,772			476,666			529,928			472,097			559,169
FHLB advances and other borrowings	770,627			863,949			626,055			610,255			750,202
Total interest-bearing liabilities	$	2,592,274		$	2,709,873		$	2,554,396		$	2,315,629		$	2,553,459

Total assets	$	3,529,665		$	3,607,101		$	3,427,807		$	2,975,818		$	3,216,502
Non-interest-bearing demand deposits	358,707			338,074			316,237			213,220			204,458
Total deposits	2,180,354			2,183,998			2,244,578			1,918,594			2,007,715
Total shareholders' equity	520,684			513,431			504,596			411,049			406,139

Yields/Rates:
Commercial real estate	6.17		%	6.44		%	6.41		%	6.22		%	6.39		%
Commercial and industrial loans:
Commercial	5.24		%	5.98		%	6.08		%	5.80		%	6.24		%
Warehouse lines of credit	3.71		%	3.82		%	3.31		%	3.29		%	3.43		%
One- to four-family real estate	5.42		%	5.40		%	5.53		%	5.08		%	5.16		%
Home equity/home improvement	5.63		%	5.41		%	5.58		%	5.56		%	5.67		%



Other consumer loans	6.00	%	6.03	%	6.43	%	6.13	%	6.47	%
Loans held for sale	4.05	%	4.11	%	4.10	%	4.18	%	4.22	%
Loans receivable	5.20	%	5.34	%	5.48	%	5.23	%	5.29	%
Securities	1.74	%	1.85	%	1.97	%	2.12	%	2.16	%
Overnight deposits	0.25	%	0.23	%	0.46	%	0.22	%	0.24	%
Total interest-earning assets	4.37	%	4.34	%	4.36	%	4.13	%	4.06	%
Deposits:
Interest-bearing demand	0.43	%	0.61	%	0.84	%	0.94	%	1.39	%
Savings and money market	0.27	%	0.27	%	0.29	%	0.26	%	0.30	%
Time	1.03	%	1.11	%	1.17	%	1.39	%	1.56	%
FHLB advances and other borrowings	1.37	%	1.27	%	1.72	%	1.74	%	1.47	%
Total interest-bearing liabilities	0.76	%	0.80	%	0.93	%	1.02	%	1.12	%
Net interest spread	3.61	%	3.54	%	3.43	%	3.11	%	2.94	%
Net interest margin	3.77	%	3.70	%	3.62	%	3.30	%	3.13	%
Cost of deposits (including non-interest-bearing demand)	0.43	%	0.49	%	0.58	%	0.67	%	0.88	%

Supplemental Information- Non-GAAP Financial Measures (unaudited)



	Ending Balances At
	December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012			December 31, 2011
Calculation of Tangible Book Value per Share:	(Dollars in thousands, except share and per share amounts)
Total shareholders' equity	$	520,871		$	516,353		$	505,575		$	412,605		$	406,309
Less: Goodwill	(29,650		)	(29,650		)	(29,203		)	(818		)	(818		)
Identifiable intangible assets, net	(1,653		)	(1,793		)	(1,949		)	(371		)	(420		)
Total tangible shareholders' equity	$	489,568		$	484,910		$	474,423		$	411,416		$	405,071

Shares outstanding at end of period	39,612,911			39,579,667			39,344,167			33,703,080			33,700,399

Book value per share- GAAP	$	13.15		$	13.05		$	12.85		$	12.24		$	12.06
Tangible book value per share- Non-GAAP	$	12.36		$	12.25		$	12.06		$	12.21		$	12.02

Calculation of Tangible Equity to Tangible Assets:
Total assets	$	3,663,058		$	3,636,033		$	3,692,856		$	3,041,112		$	3,180,578
Less: Goodwill	(29,650		)	(29,650		)	(29,203		)	(818		)	(818		)
Identifiable intangible assets, net	(1,653		)	(1,793		)	(1,949		)	(371		)	(420		)
Total tangible assets	$	3,631,755		$	3,604,590		$	3,661,704		$	3,039,923		$	3,179,340

Equity to assets- GAAP	14.22		%	14.20		%	13.69		%	13.57		%	12.77		%
Tangible common equity to tangible assets- Non-GAAP	13.48		%	13.45		%	12.96		%	13.53		%	12.74		%

Attached files

LegacyTexas Financial Group, Inc. Reports

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