WYOMISSING, Pa., Feb. 2 /PRNewswire-FirstCall/ — VIST Financial Corp. (“Company”) (Nasdaq: VIST) reported net income for the twelve months ended December 31, 2009 of $566,000, a 0.2% increase over a net income of $565,000 for the same period in 2008.
WYOMISSING, Pa., Feb. 2 /PRNewswire-FirstCall/ — VIST Financial Corp. (“Company”) (Nasdaq: VIST) reported net income for the twelve months ended December 31, 2009 of $566,000, a 0.2% increase over a net income of $565,000 for the same period in 2008. The Company also reported net income for the three months ended December 31, 2009 of $388,000, an 81.9% decrease over a net income of $2,146,000 for the same period in 2008. Total revenue for the twelve months ended December 31, 2009 was $80,171,000 as compared to $77,817,000 for the same period in 2008, a 3.0% increase. Total revenue for the three months ended December 31, 2009 was $20,491,000 as compared to $20,603,000 for the same period in 2008, a 0.5% decrease.rnrnThe Company also 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 February 11, 2010 payable February 22, 2010.rnrnCommenting on the fourth quarter 2009, Robert D. Davis, President and Chief Executive Officer of VIST Financial Corp. said, “Our performance in 2009 and the fourth quarter of the year continues to be heavily influenced by the national and regional recession. In spite of the economic headwinds, we are pleased with our linked quarter improvement in core operating earnings, significant deposit growth, good non-interest income growth and relative stabilization of our credit quality metrics, particularly in the second half of the year. Our net interest margin increased significantly during the year driven by disciplined commercial and consumer loan growth and pricing funded by strong core deposit growth and the attendant reduction in the overall cost of our deposits. Exclusive of FDIC insurance charges and other real estate expense, our overall expenses were flat.” Davis concluded, “Given the underlying collateral coverage of our non-performing loans, reserve levels and capital position, we believe we are poised for growth across our banking, insurance and wealth management businesses as our regional and national economies improve. Our net charge-offs are manageable. Our non-performing loans are concentrated in a few credits and are well secured based on current appraisals and the rate of their growth stabilized somewhat during the most recent quarter.”rnrnNet Interest IncomernrnFor the twelve months ended December 31, 2009, net interest income before the provision for loan losses decreased 0.2% to $35,260,000 compared to $35,341,000 for the same period in 2008. The decrease in net interest income for the twelve months resulted from a 4.9% decrease in total interest income to $62,740,000 from $65,978,000 and a 10.3% decrease in total interest expense to $27,480,000 from $30,637,000. For the three months ended December 31, 2009, net interest income before the provision for loan losses increased 10.1% to $9,465,000 compared to $8,595,000 for the same period in 2008. The increase in net interest income for the three months resulted from a 0.2% decrease in total interest income to $16,062,000 from $16,091,000 and a 12.0% reduction in total interest expense to $6,597,000 from $7,496,000.rnrnThe decrease in total interest income for the three and twelve months ended December 31, 2009 resulted primarily from lower interest rates compared to the same periods in 2008. Average earning assets for the three and twelve month periods ended December 31, 2009 increased $95,326,000 and $84,739,000, respectively, compared to the same periods in 2008 due primarily to growth in commercial and consumer loans and available for sale investment securities.rnrnThe reduction in total interest expense for the three and twelve months ended December 31, 2009 resulted primarily from lower interest rates compared to the same periods in 2008. Average interest-bearing liabilities for the three and twelve months ended December 31, 2009 increased $80,064,000 and $74,294,000, respectively, compared to the same periods in 2008. The increases in interest-bearing liabilities are due primarily to an increase in average interest-bearing deposits for the three and twelve months ended December 31, 2009 of $164,220,000 and $165,992,000, respectively, offset by a net decrease in average short term borrowings and average long term debt for the three and twelve months ended December 31, 2009 of $83,570,000 and $91,321,000, respectively.rnrnThe provision for loan losses for the twelve months ended December 31, 2009 was $8,572,000 compared to $4,835,000 for the same period in 2008. The provision for loan losses for the three months ended December 31, 2009 was $2,047,000 compared to $2,250,000 for the same period in 2008. As of December 31, 2009, the allowance for loan losses was $11,449,000 compared to $8,124,000 as of December 31, 2008, an increase of 40.9%. The increase in the provision is due primarily to current challenging economic conditions, an increase in outstanding loans, 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 December 31, 2009, total non-performing loans were $26,951,000 or 3.0% of total loans compared to $10,844,000 or 1.2% of total loans at December 31, 2008. The $16,107,000 increase in non-performing loans was due primarily to two commercial construction and development credit relationships totaling approximately $9,370,000. Management considers the current allowance for loan losses adequate as of December 31, 2009.rnrnNet interest income after the provision for loan losses for the three and twelve months ended December 31, 2009 was $7,418,000 and $26,688,000, respectively, as compared to $6,345,000 and $30,506,000, respectively, for the same periods in 2008.rnrnFor the three months ended December 31, 2009, the net interest margin on a fully taxable equivalent basis was 3.31% as compared to 3.27% for the same period in 2008. For the twelve months ended December 31, 2009, the net interest margin on a fully taxable equivalent basis was 3.21% as compared to 3.45% for the same period in 2008. The increase in net interest margin for the comparative three month periods ended December 31, 2009 was due mainly to lower cost of funds on interest-bearing deposits and short term borrowings compared to the same period in 2008. The decrease in net interest margin for the comparative twelve month period ended December 31, 2009 was due mainly to lower yields on commercial and consumer loans and available for sale investment securities as a result of decreases in short-term interest rates over the same period in 2008.rnrnNon-Interest IncomernrnTotal non-interest income for the twelve months ended December 31, 2009 increased 47.2% to $17,431,000 compared to $11,839,000 for the same period in 2008. Total non-interest income for the three months ended December 31, 2009 decreased 1.8% to $4,429,000 compared to $4,512,000 for the same period in 2008.rnrnFor the twelve months ended December 31, 2009, customer service fees decreased to $2,443,000 from $2,964,000, or 17.6%, for the same period in 2008. For the three months ended December 31, 2009, customer service fees decreased to $589,000 from $775,000, or 24.0%, for the same period in 2008. The decrease for the comparative twelve and three month periods is due primarily to a decrease in retail and commercial uncollected funds fees and non-sufficient funds charges.rnrnFor the twelve months ended December 31, 2009, revenue from mortgage banking activity increased to $1,255,000 from $897,000, or 39.9%, for the same period in 2008. For the three months ended December 31, 2009, revenue from mortgage banking activity increased to $292,000 from $87,000, or 235.6%, for the same period in 2008. The increase for the comparative twelve and three month periods is primarily due to an increase 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.rnrnFor the twelve months ended December 31, 2009, revenue from commissions and fees from insurance sales increased 8.6% to $12,254,000 compared to $11,284,000 for the same period in 2008. For the three months ended December 31, 2009, revenue from commissions and fees from insurance sales increased 8.7% to $3,000,000 compared to $2,761,000 for the same period in 2008. The increase for the comparative twelve and three month periods is mainly attributed to an increase in commission income on group insurance products due to the acquisition of Fisher Benefits Consulting in September 2008. VIST Insurance, LLC is a wholly owned subsidiary of the Company.rnrnFor the twelve months ended December 31, 2009, revenue from brokerage and investment advisory commissions and fees activity decreased to $714,000 from $813,000, or 12.2%, for the same period in 2008. For the three months ended December 31, 2009, revenue from brokerage and investment advisory commissions and fees activity decreased to $120,000 from $163,000, or 26.4%, for the same period in 2008. The decrease for the comparative twelve and three month periods is due primarily to decreases in volume of investment advisory services offered through VIST Capital Management, LLC, a wholly owned subsidiary of the Company.rnrnFor the twelve months ended December 31, 2009, earnings on investment in life insurance decreased to $391,000 from $690,000, or 43.3%, for the same period in 2008. For the three months ended December 31, 2009, earnings on investment in life insurance decreased to $111,000 from $187,000, or 40.6%, for the same period in 2008. The decrease for the comparative twelve and three month periods is due primarily to decreased earnings credited on the Company’s bank owned life insurance (“BOLI”).rnrnFor the twelve months ended December 31, 2009, other income including gain on sale of loans increased to $2,498,000 from $2,421,000, or 3.2%, for the same period in 2008 due primarily to an increase in interchange fee income. For the three months ended December 31, 2009, other income including gain on sale of loans decreased to $474,000 from $975,000, or 51.3%, for the same period in 2008. The decrease for the comparative three month periods is due primarily to a decrease in the fair value of the Company’s junior subordinated debt and interest rate swaps.rnrnNet realized gains on sales of available for sale securities were $344,000 for the twelve months ended December 31, 2009 compared to net realized losses on sales of available for sale securities of $7,230,000 for the same period in 2008. Net realized losses on sales of available for sale securities were $7,000 for the three months ended December 31, 2009 compared to net realized losses on sales of available for sale securities of $436,000 for the same period in 2008. Sales of available for sale securities during 2009 were primarily related to the management of the Company’s liquidity and asset/liability management strategies. Net realized losses on sales of available for sale securities for the twelve and three month periods in 2008 were primarily due to the loss on the sale of approximately $7.3 million in perpetual preferred stock associated with the federal takeover of government sponsored enterprises (“GSE’s”) Fannie Mae and Freddie Mac, placed into conservatorship by the Federal Housing Finance Agency and the U.S. Treasury and two equity holdings.rnrnFor the twelve and three month periods ended December 31, 2009, net credit impairment losses recognized in earnings resulting from other-than-temporary impairment (“OTTI”) losses on available for sale investment securities were $2,468,000 and $150,000, respectively. The net credit impairment losses include OTTI charges for estimated credit losses on five pooled trust preferred securities and one equity holding.rnrnNon-Interest ExpensernrnTotal non-interest expense for the twelve months ended December 31, 2009 increased 4.5% to $45,603,000 compared to $43,638,000 for the same period in 2008. Total non-interest expense for the three months ended December 31, 2009 increased 4.1% to $11,934,000 compared to $11,469,000 for the same period in 2008.rnrnSalaries and benefits were $22,034,000 for the twelve months ended December 31, 2009, a decrease of 0.2% compared to $22,078,000 for the same period in 2008. Salaries and benefits were $5,218,000 for the three months ended December 31, 2009, a decrease of 6.3% compared to $5,569,000 for the same period in 2008. Included in salaries and benefits for the twelve months ended December 31, 2009 and 2008 were stock-based compensation costs of $197,000 and $319,000, respectively. Included in salaries and benefits for the three months ended December 31, 2009 and 2008 were stock-based compensation costs of $59,000 and $61,000, respectively. Included in salaries and benefits for the twelve months ended December 31, 2009 were severance costs of $133,000 relating to corporate-wide cost reduction initiatives. Total commissions paid for the twelve months ended December 31, 2009 and 2008 were $1,409,000 and $1,557,000, respectively. Total commissions paid for the three months ended December 31, 2009 and 2008 were $328,000 and $258,000, respectively.rnrnFor the twelve months ended December 31, 2009, occupancy expense and furniture and equipment expense decreased to $6,655,000 from $7,397,000, or 10.0%, for the same period in 2008. For the three months ended December 31, 2009, occupancy expense and furniture and equipment expense decreased to $1,736,000 from $2,108,000, or 17.6%, for the same period in 2008. The decrease for the comparative twelve and three month periods is due primarily to decreases in building lease expense, equipment maintenance and equipment depreciation expenses.rnrnFor the twelve months ended December 31, 2009, marketing and advertising expense decreased to $1,011,000 from $1,635,000, or 38.2%, for the same period in 2008. For the three months ended December 31, 2009, advertising and marketing expense decreased to $198,000 from $233,000, or 15.0%, for the same period in 2008. The decrease for the comparative twelve and three month periods is due primarily to a reduction in marketing costs associated with market research, media space, media production and special events.rnrnFor the twelve months ended December 31, 2009, professional services expense decreased to $2,480,000 from $2,594,000, or 4.4%, for the same period in 2008. For the three months ended December 31, 2009, professional services expense decreased to $561,000 from $797,000, or 29.6%, for the same period in 2008. The decrease for the comparative twelve and three month periods is due primarily to the outsourcing of the Company’s internal audit function and fewer general Company projects.rnrnFor the twelve months ended December 31, 2009, outside processing expense increased to $3,983,000 from $3,334,000, or 19.5%, for the same period in 2008. For the three months ended December 31, 2009, outside processing expense increased to $932,000 from $875,000, or 6.5%, for the same period in 2008. The increase for the comparative twelve and three month periods is due primarily to services rendered for core operating system and computer network and systems upgrades and enhancements.rnrnFor the twelve months ended December 31, 2009, insurance expense increased to $2,479,000 from $1,262,000, or 96.4%, for the same period in 2008. For the three months ended December 31, 2009, insurance expense increased to $565,000 from $440,000, or 28.4%, for the same period in 2008. The increase in insurance expense for the comparative twelve and three month periods is due primarily to higher FDIC deposit insurance premiums including a special industry-wide FDIC deposit insurance premium assessment of $580,000 levied in the second quarter of 2009.rnrnFor the twelve months ended December 31, 2009, other real estate expense increased to $2,562,000 from $834,000, or 207.2%, for the same period in 2008. For the three months ended December 31, 2009, other real estate expense increased to $1,587,000 from $332,000, or 378.0%, for the same period in 2008. The increase in other real estate expense for the comparative twelve and three month periods is due primarily to an increase in the amount of other real estate owned in 2009.rnrnIncome Tax ExpensernrnIncome tax benefit for the twelve months ended December 31, 2009 was $2,050,000, a 10.3% increase as compared to income tax benefit of $1,858,000 for the twelve months ended December 31, 2008. Income tax benefit for the three months ended December 31, 2009 was $475,000, an 82.8% decrease as compared to income tax benefit of $2,758,000 for the three months ended December 31, 2008. Included in income tax benefit for the twelve and three months ended December 31, 2009 and 2008 is a federal tax benefit from a $5,000,000 investment in an affordable housing, corporate tax credit limited partnership.rnrnEarnings Per SharernrnDiluted (loss) per common share for the twelve months ended December 31, 2009 were $0.19 on average shares outstanding of 5,780,541, a 290.0% decrease as compared to diluted income per common share of $0.10 on average shares outstanding of 5,694,803 for the twelve months ended December 31, 2008. Diluted (loss) per common share for the three months ended December 31, 2009 were $0.01 on average shares outstanding of 5,800,003, a 102.6% decrease as compared to diluted income per common share of $0.38 on average shares outstanding of 5,697,280 for the three months ended December 31, 2008.rnrnAssets, Liabilities and EquityrnrnTotal assets as of December 31, 2009 increased $82,615,000, or 6.7%, to $1,308,685,000 compared to $1,226,070,000 at December 31, 2008. Total loans as of December 31, 2009 increased $24,659,000, or 2.8%, to $910,964,000 compared to $886,305,000 at December 31, 2008. Total deposits as of December 31, 2009 increased $170,460,000, or 20.0%, to $1,021,060,000 compared to $850,600,000 at December 31, 2008. Total borrowings as of December 31, 2009 decreased $86,916,000, or 35.9%, to $154,854,000 compared to $241,770,000 at December 31, 2008.rnrnShareholders’ equity as of December 31, 2009 increased $1,758,000, or 1.4%, to $125,387,000 compared to $123,629,000 at December 31, 2008. Included in shareholders’ equity is an unrealized loss position on available for sale securities, net of taxes, as of December 31, 2009 of $4,512,000 compared to an unrealized loss position on available for sale securities, net of taxes, of $7,834,000 at December 31, 2008.rnrnNOTE: During the fourth quarter of 2009, the Company filed a Current Report on Form 8-K indicating that the Company would amend its Form 10-K for the year ended December 31, 2008 [and its Forms 10-Q for the first three quarters of 2009] to correct certain accounting errors and the related effects of those errors. Information included in this press release as of December 31, 2008 and for the three-month and twelve-month periods ended December 31, 2008 includes the corrected amounts as they will appear in the amended Form 10-K when filed. For additional information, see the Company’s Current Report on Form 8-K filed on November 10, 2009, as amended on December 23, 2009. These filings are available on the Internet site maintained by the SEC (www.sec.gov).
