ViewPoint Financial Group Inc. (VPFG) News

PLANO, Texas, Feb. 9 /PRNewswire-FirstCall/ -- ViewPoint Financial Group (Nasdaq: VPFG) (the 'Company'), the holding company for ViewPoint Bank, announced unaudited financial results today for the three and twelve month periods ended December 31, 2008. Detailed results of the year will be available in the Company's Annual Report on Form 10-K, which will be filed in March and posted on our website, http://viewpointbank.com. Highlights for this year include:

• $0.25 basic and diluted earnings per share for the year ended December 31, 2008, compared to $0.20 basic and diluted earnings per share for the year ended December 31, 2007
• Total assets of $2.21 billion, an increase of $555.2 million, or 33.5%, from December 31, 2007
• Net loans (including loans held for sale) of $1.40 billion, an increase of $477.8 million, or 51.8%, from December 31, 2007
• Total deposits of $1.55 billion, an increase of $250.5 million, or 19.3%, from December 31, 2007
• Declared dividends of $0.29 cents per share in 2008 and announced quarterly dividend of $0.08 cents per share to shareholders of record on February 3, 2009
• Initiated warehouse lending program in 2008, with outstanding financings totaling $190.8 million on December 31, 2008
• Net income of $5.9 million for the year ended December 31, 2008, an increase of 15.8% from the year ended December 31, 2007
• Asset quality remains strong with lower net charge-offs compared to 2007

'We're pleased to report that despite the turbulent economy, we are experiencing strong growth,' said Gary Base, President and Chief Executive Officer. 'Not only did we increase our earnings per share over 2007, but we also increased our deposits, our assets, our loan portfolio and the dividends we paid to our investors. In addition, our asset quality and capital levels remained strong, positioning us well for the future.'

'We're also excited about the expansion of our full-service community banking network,' Base continued. 'We added stand-alone bank locations in Northeast Tarrant County and Oak Cliff in 2008, and look forward to the 2009 opening of three more full-service community banks to serve customers in Grapevine, West Frisco and Wylie.'

Results of Operations for the Year Ended December 31, 2008

Net income for the year ended December 31, 2008, was $5.9 million, an increase of $799,000, or 15.8%, from $5.1 million for the year ended December 31, 2007. Earnings for 2008 included a $1.2 million benefit related to the Visa, Inc. ('Visa') initial public offering and share-based compensation expense of $1.7 million from the Equity Incentive Plan adopted in May 2007. Comparatively, during the year ended December 31, 2007, the Company recognized a litigation liability of $446,000 recorded in connection with separate settlements between Visa and American Express, Discover, and other interchange litigants and share-based compensation expense of $1.1 million for approximately seven months under the Equity Incentive Plan. Excluding these items, non-GAAP net income for the year ended December 31, 2008, was $6.2 million, a $122,000 increase from the same period last year. A reconciliation of these non-GAAP income items to GAAP net income can be found in the tables accompanying this press release.

Interest income increased by $13.3 million, or 15.9%, to $97.4 million for the year ended December 31, 2008, from $84.1 million for the year ended December 31, 2007. The average balance in our loan portfolio increased from $921.4 million for the year ended December 31, 2007, to $1.10 billion for the year ended December 31, 2008. This, coupled with a nine basis point higher average yield earned on loans, contributed to the $11.7 million, or 21.4%, increase in loan interest income. Also, higher balances in mortgage-backed and other investment securities and a 106 basis point higher average yield earned on other investment securities led to a $4.2 million increase in interest income earned on securities. These increases were partially offset by a $2.7 million decline in interest earned on overnight interest-bearing deposits in other financial institutions, as the average balance of these assets decreased by $23.9 million from 2007 to 2008, and the average yield decreased by 263 basis points for the same time frame.

Interest expense increased by $5.1 million, or 12.3%, from $41.1 million for the year ended December 31, 2007, to $46.2 million for the year ended December 31, 2008. The increased interest expense was primarily caused by an increase of $193.9 million, or 232.2%, in the average balances of Federal Home Loan Bank advances and other borrowings, including a repurchase agreement for $25.0 million entered into in April 2008. These borrowings assist in leveraging our balance sheet and extending the duration of our liabilities to more closely match our assets. Lower average rates paid on our savings, money market and time accounts, and on our borrowings, helped to partially offset the increased interest expense associated with the increase in the volume of our borrowings.

Noninterest income increased by $6.4 million, or 24.5%, from $26.1 million for the year ended December 31, 2007, to $32.5 million for the year ended December 31, 2008. The increase was caused by an $8.1 million, or 623.4%, increase in our net gain on sales of loans, as we sold $285.4 million in mortgage loans to outside investors during the year ended December 31, 2008.

The Company completed its acquisition of the assets of Bankers Financial Mortgage Group, Ltd. ('BFMG') (now known as ViewPoint Bankers Mortgage, Inc., or 'VPBM') on September 1, 2007; therefore, the Company did not recognize similar gains on loan sales for the year ended December 31, 2007. Also, in March 2008 we recognized a gain of $771,000 resulting from the redemption of 18,029 shares of Visa Class B stock in association with Visa's initial public offering. A $2.6 million decrease in service charges and fees partially offset the increased noninterest income.

Noninterest expense increased by $11.1 million, or 19.3%, from $58.0 million for the year ended December 31, 2007, to $69.1 million for the year ended December 31, 2008. The increase was primarily caused by higher salaries and employee benefits expense of $11.8 million, as we have added staff over the past year due to our September 2007 acquisition of VPBM, our new warehouse lending division and the opening of two new community bank offices. Also, the Company recognized higher share-based compensation expense of $629,000 from the Equity Incentive Plan approved in May 2007, which contributed approximately seven months of expense in 2007 compared to a full year of expense in 2008. The increased noninterest expense was partially offset by a $930,000 decrease in outside professional services expense, which was due to the reversal of the $446,000 Visa litigation liability.

Based on management's evaluation, provisions for loan losses of $6.2 million and $3.3 million were made during the years ended December 31, 2008 and 2007, respectively. The $2.9 million, or 88.8%, increase in the provision for loan losses was primarily driven by the growth in our loan portfolio, as the average outstanding balance of loans increased by $181.5 million, or 19.7%, from 2007 to 2008. While the provision expense has increased, net charge-offs have decreased by $342,000, or 9.5%, from 2007 to 2008. At December 31, 2008, the allowance for loan losses to total loans was 0.73%, compared to 0.67% at December 31, 2007.

Results of Operations for the Quarter Ended December 31, 2008

Net income for the quarter ended December 31, 2008, was $1.7 million, an increase of $609,000, or 57.9%, from $1.1 million for the quarter ended December 31, 2007. Earnings for the quarter ended December 31, 2008, included the reversal of a $127,000 litigation liability that was recorded during the third quarter of 2008 in connection with a settlement between Visa and Discover. A reconciliation of these non-GAAP income items to GAAP net income can be found in the tables accompanying this press release.

Interest income increased by $4.9 million, or 23.0%, to $26.6 million for the fourth quarter of 2008 compared to $21.7 million for the same period in 2007. The increase in interest income was primarily related to the increase in our loan portfolio, which led to a $5.5 million, or 40.1%, increase in interest income earned on loans. This increase in interest income was partially offset by higher interest expense, which was $13.0 million for the quarter, an increase of $2.0 million, or 18.5%, from the same period in 2007.

The rise in interest expense was attributable to increased balances of Federal Home Loan Bank advances and other borrowings, the average balance of which increased by $286.8 million, or 239.6%, from the quarter ended December 31, 2007, to the quarter ended December 31, 2008.

Noninterest income was $8.3 million for the quarter, an increase of $725,000, or 9.6%, from the prior period. This increase was due to higher gains on the sale of mortgage loans and was partially offset by lower service charges and fees. Noninterest expense was $18.3 million for the quarter, an increase of $2.5 million, or 15.8%, from the same period in 2007. The increase in noninterest expense was due to higher salaries and benefits expense as we have added experienced employees to our mortgage, warehouse lending and retail banking divisions to help us fully serve our customers by providing a wide range of services.

Financial Condition as of December 31, 2008

Total assets increased by $555.2 million, or 33.5%, to $2.21 billion at December 31, 2008, from $1.66 billion at December 31, 2007. The growth in total assets was primarily caused by a $477.8 million, or 51.8%, increase in net loans (including loans held for sale) and a $92.3 million, or 16.4%, increase in securities. These increases were partially offset by a decrease in cash and cash equivalents of $41.0 million, or 55.8%, which was utilized to increase lending.

Our net loan portfolio, including loans held for sale, has increased from $921.8 million at December 31, 2007, to $1.40 billion at December 31, 2008. The table below shows our mix of loans at December 31, 2008, and 2007:

                                        December 31,        December 31,
                                            2008                2007
    Mortgage loans:
       One-to four-family            $498,961   35.39%   $332,780   35.88%
       Commercial                     436,483   30.96     251,915   27.16
       One-to four-family
        construction                      503    0.03           -    0.00
       Commercial construction              -    0.00         225    0.03
       Mortgage loans held for sale   159,884   11.34      13,172    1.42
       Home Equity                    101,021    7.17      85,064    9.17
         Total mortgage loans       1,196,852   84.89     683,156   73.66

    Automobile loans                  111,870    7.93     202,973   21.89
    Other consumer loans               29,299    2.08      28,977    3.13
    Business non-mortgage loans        18,574    1.32      12,278    1.32
    Warehouse lines of credit          53,271    3.78           -       -
         Total non-mortgage loans     213,014   15.11     244,228   26.34

    Gross loans                    $1,409,866  100.00%   $927,384  100.00%

Our loan growth has been driven by increases in our one- to four-family and commercial real estate portfolios and our new warehouse lending program, which was initiated in July 2008. From December 31, 2007, to December 31, 2008, one-to four-family mortgage loans increased by $166.7 million, or 50.1%, from $332.8 million at December 31, 2007, to $499.5 million at December 31, 2008, while commercial real estate loans increased by $184.4 million, or 73.1%, for the same time period. Warehouse lending accounted for $190.8 million, or 13.5% of our gross loan portfolio, at December 31, 2008. $137.5 million of this portfolio is reflected as mortgage loans held for sale and the remaining $53.3 million is classified as unsecured commercial lines of credit.

The growth in our total loan portfolio has been partially offset by a $91.1 million decline in automobile loans, due primarily to the discontinuation of our indirect automobile lending program in 2007 and the ongoing paydown of the remainder of that portfolio.

Securities that have been designated as held to maturity increased by $152.2 million, from $20.1 million at December 31, 2007, to $172.3 million at December 31, 2008, while securities designated as available for sale decreased by $59.9 million, from $542.9 million at December 31, 2007, to $483.0 million at December 31, 2008. During 2008, we purchased $242.7 million in securities, $176.6 million of which were marked as held to maturity. We have not sold any securities, and the decrease in securities available for sale is due to maturities and principal paydowns. Additionally, we have not recognized any impairment charges related to our securities portfolio.

Total deposits increased by $250.5 million, or 19.3%, from $1.30 billion at December 31, 2007, to $1.55 billion at December 31, 2008. This increase resulted from growth in our time, money market and interest-bearing demand accounts. From December 31, 2007, to December 31, 2008, time deposits have increased by $184.8 million, or 40.5%, from $456.8 million at December 31, 2007, to $641.6 million at December 31, 2008. Savings and money market accounts have increased by $56.5 million, or 9.8%, from $578.7 million at December 31, 2007, to $635.2 million at December 31, 2008. Interest-bearing demand deposits have increased by $27.0 million due to the introduction of our Absolute Checking product in May 2008. These deposit increases were partially offset by a $17.8 million, or 9.3%, decrease in noninterest-bearing demand deposits.

Federal Home Loan Bank advances increased by $282.3 million, or 219.8%, from $128.5 million at December 31, 2007, to $410.8 million at December 31, 2008. Also, in April 2008 the Bank entered into a $25.0 million repurchase agreement with Credit Suisse Securities (U.S.A.) LLC. As our loan portfolio increases, we utilize Federal Home Loan Bank advances and other borrowings as a liquidity tool, to leverage our balance sheet and to extend the duration of our liabilities to more closely match our assets.

Total shareholders' equity decreased by $9.7 million, or 4.8%, from $203.8 million at December 31, 2007, to $194.1 million at December 31, 2008. The decrease in shareholders' equity was primarily due to a decrease in accumulated other comprehensive income of $11.5 million, which was partially offset by net income of $5.9 million. The decrease in accumulated other comprehensive income was primarily caused by an unrealized market value loss in collateralized debt obligations held in our securities portfolio. The unrealized losses in these collateralized debt obligations are more related to recent events in the mortgage market than to current levels of interest rates. In 2008, we repurchased 289,346 shares of our common stock, resulting in a $4.3 million increase in treasury stock. Also, in 2008, we paid dividends to minority shareholders totaling $0.29 per share, resulting in a $3.2 million decrease to shareholders' equity

About ViewPoint Financial Group

ViewPoint Financial Group is the holding company for ViewPoint Bank, the largest bank based in fast-growing Collin County, Texas. ViewPoint Bank operates 30 community bank offices and 15 loan production offices. For more information, please visit www.viewpointbank.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, competition, changes in management's business strategies and other factors set forth under Risk Factors in our Form 10-K, that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. The Company wishes to advise readers that 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 which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

                     VIEWPOINT FINANCIAL GROUP AND SUBSIDIARY
                  Condensed Consolidated Statements of Condition
                                  (In thousands)

                                         December 31, 2008   December 31, 2007
                                            (unaudited)
    ASSETS

    Cash and cash equivalents                  $32,513           $73,478
    Securities available for sale,
     at fair value                             483,016           542,875
    Securities held to maturity                172,343            20,091
    Mortgage loans held for sale               159,884            13,172
    Loans, net of allowance of
     $9,068 - December 31, 2008,
     $6,165 - December 31, 2007              1,239,708           908,650
    Federal Home Loan Bank stock                18,069             6,241
    Bank-owned life insurance                   27,578            26,497
    Premises and equipment, net                 45,937            40,862
    Accrued interest receivable
     and other assets                           34,399            26,338
      Total Assets                          $2,213,447        $1,658,204

    LIABILITIES AND SHAREHOLDERS'
     EQUITY

    Deposits
      Non-interest-bearing demand             $172,395          $190,163
      Interest-bearing demand                   98,884            71,934
      Savings and money market                 635,243           578,728
      Time                                     641,568           456,768
        Total deposits                       1,548,090         1,297,593
    Federal Home Loan Bank
     advances                                  410,841           128,451
    Repurchase agreement                        25,000                 -
    Accrued interest payable and
     other liabilities                          35,427            28,366
      Total liabilities                      2,019,358         1,454,410

    Total shareholders' equity                 194,089           203,794
          Total Liabilities and
           Shareholders' Equity             $2,213,447        $1,658,204

    The following table presents market price information and cash dividends
    paid per share for our common stock since it began trading on the NASDAQ
    Global Select Market on October 3, 2006:

                                          Market Price
                                      High            Low     Dividends Paid
    Year ended December 31, 2008     $17.81         $14.48        $0.29
    Year ended December 31, 2007      18.91          14.80         0.20
    Year ended December 31, 2006      17.45          14.90            -

                     VIEWPOINT FINANCIAL GROUP AND SUBSIDIARY
                    Condensed Consolidated Statements of Income
                       (In thousands except per share data)

                                  Three Months Ended   Twelve Months Ended
                                      December 31,         December 31,
                                     2008      2007      2008       2007
                                       (unaudited)        (unaudited)
    Interest and dividend
     income
      Loans, including fees        $19,178   $13,691   $66,386    $54,674
      Securities                     7,196     7,156    29,556     25,307
      Interest-bearing deposits
       in other financial
       institutions                    228       761     1,195      3,865
      Federal Home Loan
       Bank stock                       46        56       271        208
                                    26,648    21,664    97,408     84,054

    Interest expense
      Deposits                       8,893     9,485    35,529     37,073
      Federal Home Loan Bank
       advances and other
       borrowings                    4,102     1,477    10,640      4,048
                                    12,995    10,962    46,169     41,121

    Net interest income             13,653    10,702    51,239     42,933
    Provision for loan losses        1,667     1,085     6,171      3,268
    Net interest income after
     provision for loan losses      11,986     9,617    45,068     39,665

    Noninterest income               8,290     7,565    32,508     26,103
    Noninterest expense             18,254    15,764    69,118     57,957

    Income before income tax
     expense                         2,022     1,418     8,458      7,811
    Income tax expense                 362       366     2,592      2,744

    Net income                      $1,660    $1,052    $5,866     $5,067

    Basic and diluted earnings
     per share                       $0.07     $0.04     $0.25      $0.20

                      VIEWPOINT FINANCIAL GROUP AND SUBSIDIARY
                    Reconciliation of Non-GAAP to GAAP Net Income
                                 (In thousands)

                              Three Months Ended          Twelve Months Ended
                                 December 31,                December 31,
                               2008        2007           2008           2007
                                               (unaudited)

    GAAP net income          $1,660       $1,052         $5,866         $5,067

    Share-based
     compensation
     expense,
     net of tax                 282          292          1,134            719
    Visa litigation
     liability,
     net of tax                   -          294             84            294
    Reversal of Visa
     litigation
     liability,
     net of tax                 (84)           -           (378)             -
    Gain on redemption
     of Class B Visa,
     Inc. shares, net
     of tax
                                  -            -           (504)             -

    Non-GAAP net income      $1,858       $1,638         $6,202         $6,080

    Basic and diluted
     non-GAAP
     earnings per share       $0.08        $0.07          $0.26          $0.25



                     VIEWPOINT FINANCIAL GROUP AND SUBSIDIARY
                        Selected Financial Data (unaudited)
                  (Dollar amounts in thousands except share data)

                                         Three Months Ended
                        Dec         Sept        June        Mar         Dec
                        2008        2008        2008        2008        2007
                                             Unaudited
    Share Data for
     Earnings per
     Share
     Calculation:
    Weighted
     average
     common shares
     outstanding   24,929,157  24,958,368  25,211,327  25,218,503  25,431,579
    Less: average
     unallocated
     ESOP shares     (734,727)   (758,021)   (781,144)   (804,354)   (827,567)
    Less: average
     unvested
     restricted
     shares          (346,161)   (346,161)   (393,264)   (430,208)   (420,208)
    Average
     shares        23,848,269  23,854,186  24,036,919  23,983,941  24,183,804
    Diluted
     average
     shares        23,848,269  23,854,186  24,036,919  23,983,941  24,183,804

    Net income         $1,660      $1,229      $1,439      $1,538      $1,052
    EPS                 $0.07       $0.06       $0.06       $0.06       $0.04
    Non-GAAP EPS        $0.08       $0.07       $0.07       $0.04       $0.07

    Share data at
     period-end:
    Total shares
     issued        26,208,958  26,208,958  26,208,958  26,208,958  26,208,958
    Less:
     Treasury
     stock         (1,279,801) (1,279,801) (1,080,257)   (990,455) (1,000,455)
    Total shares
     outstanding   24,929,157  24,929,157  25,128,701  25,218,503  25,208,503

    Location Data:
    Number of
     community
     bank offices          30          29          28          28          28
    Number of loan
     production
     offices               15          20          11           9           9

    Performance
     Ratios(1):
    Return on
     assets              0.32%       0.25%       0.31%       0.36%       0.26%
    Return on
     equity              3.44%       2.49%       2.82%       2.99%       2.04%
    Noninterest
     income
     to operating
     revenues           23.73%      23.89%      26.11%      27.46%      25.88%
    Operating
     expenses
     to average
     total assets        3.48%       3.72%       3.64%       3.78%       3.85%
    Efficiency
     ratio              83.19%      83.41%      81.68%      82.01%      86.30%

    Capital Ratios:
    Equity to
     total assets        8.77%      10.03%      10.82%      11.56%      12.29%
    Risk-based
     capital to
     risk-weighted
     assets (2)         12.08%      13.68%      15.16%      15.98%      16.36%
    Tier 1 capital
     to risk-weighted
     assets (2)         11.48%      13.05%      14.55%      15.40%      15.79%


                                                    Year Ended
                                                 Dec          Dec
                                                 2008         2007
                                              Unaudited

    Share Data for Earnings per Share
     Calculation:
    Weighted average common shares
     outstanding                             25,078,598   25,746,038
    Less:  average unallocated ESOP
     shares                                    (769,435)    (862,296)
    Less:  average unvested restricted
     shares                                    (378,769)    (257,176)
    Average shares                           23,930,394   24,626,566
    Diluted average shares                   23,930,394   24,626,566

    Net income                                   $5,866       $5,067
    EPS                                           $0.25        $0.20
    Non-GAAP EPS                                  $0.26        $0.25

    Share data at period-end:
    Total shares issued                      26,208,958   26,208,958
    Less: Treasury stock                     (1,279,801)  (1,000,455)
    Total shares outstanding                 24,929,157   25,208,503

    Location Data:
    Number of community bank offices                 30           28
    Number of loan production offices                15            9

    Performance Ratios (1):
    Return on assets                               0.31%        0.32%
    Return on equity                               2.94%        2.39%
    Noninterest income to operating
     revenues                                     25.02%       23.70%
    Operating expenses to average total
     assets                                        3.62%        3.62%
    Efficiency ratio                              82.53%       83.95%

    Capital Ratios:
    Equity to total assets                         8.77%       12.29%
    Risk-based capital to risk-weighted
     assets (2)                                   12.08%       16.36%
    Tier 1 capital to risk-weighted
     assets (2)                                   11.48%       15.79%



                                Three Months Ended              Year Ended
                      Dec     Sept    June    Mar     Dec       Dec     Dec
                      2008    2008    2008    2008    2007      2008    2007
                                   Unaudited                 Unaudited


    Asset Quality
     Data and
     Ratios:(3)
    Non-performing
     loans          $4,745  $4,706  $3,457  $3,827   $3,513   $4,745  $3,513
    Non-performing
     assets to total
     assets           0.29%   0.27%   0.25%   0.28%    0.26%    0.29%   0.26%
    Non-performing
     loans to total
     loans            0.38%   0.39%   0.33%   0.40%    0.38%    0.38%   0.38%
    Allowance for
     loan losses to
     non-performing
     loans          191.11% 180.92% 210.53% 171.13%  175.49%  191.11% 175.49%
    Allowance for
     loan losses to
     total loans      0.73%   0.70%   0.70%   0.69%    0.67%    0.73%   0.67%

    Yields:
    Loans             5.93%   5.98%   5.92%   6.00%    6.08%    6.02%   5.93%
    Securities        4.59%   4.74%   4.70%   5.03%    5.17%    4.73%   3.94%
    Overnight
     deposits         1.67%   2.00%   2.24%   3.25%    4.71%    2.02%   4.65%
       Total
        interest-
        earning
        assets        5.39%   5.47%   5.32%   5.56%    5.69%    5.43%   5.61%

    Deposits:
       Interest-
        bearing
        demand        1.37%   1.23%   0.69%   0.57%    0.84%    1.06%   0.63%
       Savings and
        money market  2.43%   2.44%   2.31%   2.43%    2.79%    2.39%   2.86%
       Time           3.38%   3.68%   3.95%   4.49%    4.81%    3.84%   4.80%
    FHLB advances
     and other
     borrowings       4.04%   3.79%   3.90%   4.72%    4.94%    3.84%   4.85%
       Total interest-
        bearing
        liabilities   3.08%   3.06%   3.04%   3.33%    3.61%    3.10%   3.53%
    Net interest
     spread           2.31%   2.41%   2.28%   2.23%    2.08%    2.33%   2.08%
    Net interest
     margin           2.76%   2.97%   2.85%   2.86%    2.81%    2.86%   2.86%

    (1) With the exception of end of period ratios, all ratios are based on
        average monthly balances and are annualized where appropriate.
    (2) Calculated at the ViewPoint Bank level, which is subject to capital
        adequacy requirements by the Office of Thrift Supervision
    (3) Total loans does not include loans held for sale.

SOURCE ViewPoint Financial Group