ViewPoint Financial Group, Inc., the holding company for ViewPoint Bank, N.A., announced net income of $7.2 million for the quarter ended December 31, 2013, a decrease of $968,000, or 11.8 percent, from the quarter ended September 30, 2013.
In a release on February 4, the Company reported that compared to the fourth quarter of 2012, net income decreased by $3.1 million, or 30.1 percent. Net income for the year ended December 31, 2013, was $31.7 million, a $3.6 million decrease, or 10.1 percent, from net income of $35.2 million for the year ended December 31, 2012. Basic and diluted earnings per share for the quarter ended December 31, 2013, was $0.19. Basic earnings per share was down $0.03 from the linked quarter and down $0.09 from the quarter ended December 31, 2012, reflecting merger costs of $663,000 and severance costs of $210,000, which accounted for a $0.02 per share decline in earnings per share.
In November 2013, the Company announced that it had entered into a definitive agreement under which LegacyTexas Group, Inc. will merge into ViewPoint and, immediately thereafter, ViewPoint's bank subsidiary, ViewPoint Bank, N.A., will merge into LegacyTexas Group's subsidiary bank, LegacyTexas Bank. The merger will result in one of the largest independent banks in the state of Texas, with 51 branches and pro forma assets of over $5 billion.
President and CEO Kevin Hanigan, said, "This combination allows ViewPoint to accomplish many of our strategic objectives, including: gaining greater scale in the Dallas-Fort Worth Metroplex; accelerating ViewPoint's transition to a full-service, commercial- oriented community bank; leveraging our excess capital in a financially attractive transaction, and deepening our management and board depth and experience."
Full Year 2013 Performance Highlights
-Merger with LegacyTexas Group announced November 2013; the merger will result in one of the largest independent banks in the state of Texas, with 51 branches and pro forma assets of over $5 billion
-Continued execution of commercial banking strategy with commercial loan portfolio growing 39.3 percent to a total of $1.6 billion
-The Company formed a new energy lending group in May 2013 with total loans outstanding of $166.5 million at December 31, 2013
-Net interest margin expanded to 3.71 percent for the year compared to 3.61 percent for 2012
-Non-performing assets of $22.6 million, or 0.64 percent of total assets, at December 31, 2013, represents lowest level in nine quarters
-The Company announced its second consecutive quarterly cash dividend of $0.12 per share, up 20 percent from the $0.10 per share declared for the four prior quarterly dividend periods
Fourth Quarter 2013 Performance Highlights
-Linked quarter commercial loan growth of $119.1 million or 8.3 percent; loans held for investment, excluding Warehouse Purchase Program loans, up $116.2 million, or 6.0 percent
-Net interest margin increased 20 basis points for the linked quarter to 3.83 percent
-Net charge-offs declined to $127,000, the lowest level since becoming a publicly traded company in 2006
"I'm very pleased with what we accomplished last year--and last quarter," said President and CEO Kevin Hanigan. "We recorded tremendous loan growth, including strong results from our new Energy Finance group. Our non-interest bearing deposits continue to grow, our asset quality is the best it's been in more than two years, and it would be an understatement to say we're thrilled about our upcoming merger with LegacyTexas Bank. I'm looking forward to an exciting 2014."
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