WYOMISSING, Pa., July 21 /PRNewswire-FirstCall/ -- VIST Financial Corp. ("Company") (NASDAQ:VIST) reported net income for the six months ended June 30, 2009 of $24,000, a 99.2% decrease over net income of $3,027,000 for the same period in 2008. The Company also reported a net loss for the three months ended June 30, 2009 of $1,585,000, a 208.0% decrease over net income of $1,468,000 for the same period in 2008. Total revenue for the six months ended June 30, 2009 was $41,026,000 as compared to $42,500,000 for the same period in 2008, a 3.5% decrease. Total revenue for the three months ended June 30, 2009 was $19,967,000 as compared to $21,083,000 for the same period in 2008, a 5.3% decrease. The Company also reported that, based on the net loss for the second quarter and the advisability of preserving capital under the present economic circumstances, the board of directors decided to reduce the third quarter cash dividend on the Company's common stock to $0.05 per share to shareholders of record August 3, 2009 payable August 14, 2009. Commenting on the second quarter 2009, Robert D. Davis, President and Chief Executive Officer of VIST Financial Corp. said, "Our second quarter and year to date performance through the first six months of 2009 continue to reflect the economic headwinds faced by VIST Financial and all financial services firms. Despite these economic challenges, our company continues to be well capitalized at both the holding company and bank level which will allow our company to successfully navigate through the balance of 2009 and beyond." On the cash dividend action, Mr. Davis said, "We are very respectful of our history at VIST Financial of paying dividends and we will look to increase the dividend as soon as prudent. In addition to the strength of our capital, we continue to maintain stable core earnings net of extraordinary charges." Davis continued, "The entire financial services industry and VIST continue to focus on asset quality. During the second quarter, we were able to reduce other real estate owned by $4.4 million from March 31, 2009, as anticipated, however two large commercial construction and development credits totaling $10.9 million moved into the non-accrual loan category. Current appraisals have been completed on these properties and the results of these appraisals place the overall current loan-to-value ratio at approximately 77%. As a result of these two loans and an overall increase in our non-performing assets coupled with a weak economy, it was necessary for us to add to our allowance for loan losses by $4.3 million in the second quarter." Davis continued, "In addition to the large provision for loan losses, we incurred other specific charges in the second quarter. Included in the operating results for the quarter were significant costs of $580,000 related to a special industry-wide FDIC deposit insurance assessment, severance costs of $133,000 related to the Company's cost reduction initiatives and an other than temporary impairment charge ("OTTI") of $322,000 related to an available for sale trust preferred security." Davis concluded, "Recognizing the challenges that remain in our regional economy and its clear impact on segments on our commercial and consumer customers we are committed to delivering on our ultimate responsibility to maximize shareholder return." Net Interest Income For the six months ended June 30, 2009, net interest income before the provision for loan losses decreased 5.2% to $16,754,000 compared to $17,665,000 for the same period in 2008. The decrease in net interest income for the six months resulted from a 6.9% decrease in total interest income to $30,854,000 from $33,135,000 and an 8.9% reduction in total interest expense to $14,100,000 from $15,470,000. For the three months ended June 30, 2009, net interest income before the provision for loan losses decreased 8.8% to $8,267,000 compared to $9,060,000 for the same period in 2008. The decrease in net interest income for the three months resulted from a 6.3% decrease in total interest income to $15,313,000 from $16,348,000 and a 3.3% reduction in total interest expense to $7,046,000 from $7,288,000. The decrease in total interest income for the three and six months ended June 30, 2009 resulted primarily from lower interest rates compared to the same periods in 2008. Average earning assets for the three and six month periods ended June 30, 2009 increased $89,445,000 and $96,280,000, respectively, compared to the same periods in 2008 due primarily to growth in commercial and consumer loans and available for sale investment securities. The reduction in total interest expense for the three and six months ended June 30, 2009 resulted primarily from lower interest rates compared to the same periods in 2008. Average interest-bearing liabilities for the three and six months ended June 30, 2009 increased $79,493,000 and $84,512,000, respectively, compared to the same periods in 2008. The increases in interest-bearing liabilities are due primarily from an increase in average interest-bearing deposits for the three and six months ended June 30, 2009 of $170,210,000 and $163,327,000, respectively, offset by a net decrease in average short term borrowings and average long term borrowings for the three and six months ended June 30, 2009 of $90,487,000 and $78,442,000, respectively, partially offset by an increase in average securities sold under agreements to repurchase. The provision for loan losses for the six months ended June 30, 2009 was $5,125,000 compared to $2,060,000 for the same period in 2008. The provision for loan losses for the three months ended June 30, 2009 was $4,300,000 compared to $1,650,000 for the same period in 2008. As of June 30, 2009, the allowance for loan losses was $12,029,000 compared to $8,124,000 as of December 31, 2008, an annualized increase of 96.1%. The increase in the provision is due primarily to 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 June 30, 2009, total non-performing loans were $22,536,000 or 2.5% of total loans compared to $10,844,000 or 1.2% of total loans at December 31, 2008. As discussed earlier, the $11,692,000 increase in non-performing loans was due primarily to two commercial construction and development credits totaling approximately $10,887,000. Management considers the current allowance for loan losses adequate as of June 30, 2009. Net interest income after the provision for loan losses for the three and six months ended June 30, 2009 was $3,967,000 and $11,629,000, respectively, as compared to $7,410,000 and $15,605,000, respectively, for the same periods in 2008. For the six months ended June 30, 2009, the net interest margin on a fully taxable equivalent basis was 3.11% as compared to 3.55% for the same period in 2008. For the three months ended June 30, 2009, the net interest margin on a fully taxable equivalent basis was 3.03% as compared to 3.58% for the same period in 2008. The decrease in net interest margin for the comparative six and three month periods ended June 30, 2009 was due mainly to lower yields on commercial and consumer loans as a result of decreases in short-term interest rates over the same periods in 2008. Non-Interest Income Total non-interest income for the six months ended June 30, 2009 increased 8.6% to $10,172,000 compared to $9,365,000 for the same period in 2008. Total non-interest income for the three months ended June 30, 2009 decreased 1.7% to $4,654,000 compared to $4,735,000 for the same period in 2008. For the six months ended June 30, 2009, customer service fees decreased to $1,254,000 from $1,296,000, or 3.2%, for the same period in 2008. For the three months ended June 30, 2009, service charges on deposits decreased to $596,000 from $676,000, or 11.8%, for the same period in 2008. The decrease for the comparative six and three month periods is due primarily to a decrease in commercial account analysis fees and non-sufficient funds charges. For the six months ended June 30, 2009, revenue from mortgage banking activity increased to $675,000 from $665,000, or 1.5%, for the same period in 2008. For the three months ended June 30, 2009, revenue from mortgage banking activity increased to $408,000 from $342,000, or 19.3%, for the same period in 2008. The increase for the comparative six 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. For the six months ended June 30, 2009, revenue from commissions and fees from insurance sales increased 9.6% to $5,994,000 compared to $5,471,000 for the same period in 2008. For the three months ended June 30, 2009, revenue from commissions and fees from insurance sales increased 8.9% to $3,036,000 compared to $2,787,000 for the same period in 2008. The increase for the comparative six 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. For the six months ended June 30, 2009, revenue from brokerage and investment advisory commissions and fee activity increased to $482,000 from $464,000, or 3.9%, for the same period in 2008. For the three months ended June 30, 2009, revenue from brokerage and investment advisory commissions and fee activity decreased to $152,000 from $227,000, or 33.0%, for the same period in 2008. Fluctuations for the comparative six 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 six months ended June 30, 2009, earnings on investment in life insurance decreased to $184,000 from $332,000, or 44.6%, for the same period in 2008. For the three months ended June 30, 2009, earnings on investment in life insurance decreased to $108,000 from $164,000, or 34.1%, for the same period in 2008. The decrease for the comparative six and three month periods is due primarily to decreased earnings credited on the Company's bank owned life insurance ("BOLI"). For the six months ended June 30, 2009, other income including gain on sale of loans increased to $1,620,000 from $935,000, or 73.3%, for the same period in 2008. For the three months ended June 30, 2009, other income including gain on sale of loans increased to $550,000 from $478,000, or 15.1%, for the same period in 2008. The increase for the comparative six and three month periods is due primarily to a settlement of a previously accrued contingent payment occurring in the first quarter and an increase in network interchange income. Net securities losses were $37,000 for the six months ended June 30, 2009 compared to net securities gains of $202,000 for the same period in 2008. Net securities losses were $196,000 for the three months ended June 30, 2009 compared to net securities gains of $61,000 for the same period in 2008. Net securities losses for the comparative six and three month periods were due primarily to a $322,000 OTTI charge on one of the Company's available for sale trust preferred investment securities. Non-Interest Expense Total non-interest expense for the six months ended June 30, 2009 increased 5.8% to $22,846,000 compared to $21,600,000 for the same period in 2008. Total non-interest expense for the three months ended June 30, 2009 increased 10.0% to $11,567,000 compared to $10,513,000 for the same period in 2008. Salaries and benefits were $11,442,000 for the six months ended June 30, 2009, an increase of 2.8% compared to $11,128,000 for the same period in 2008. Salaries and benefits were $5,754,000 for the three months ended June 30, 2009, an increase of 6.6% compared to $5,398,000 for the same period in 2008. Included in salaries and benefits for the six months ended June 30, 2009 and 2008 were stock-based compensation costs of $77,000 and $172,000, respectively. Included in salaries and benefits for the three months ended June 30, 2009 and 2008 were stock-based compensation costs of $56,000 and $95,000, respectively. Included in salaries and benefits for the six and three months ended June 30, 2009 were severance costs of $133,000 relating to corporate-wide cost reduction initiatives. Total commissions paid for the six months ended June 30, 2009 and 2008 were $736,000 and $900,000, respectively. Total commissions paid for the three months ended June 30, 2009 and 2008 were $353,000 and $511,000, respectively. For the six months ended June 30, 2009, occupancy expense and furniture and equipment expense decreased to $3,190,000 from $3,543,000, or 10.0%, for the same period in 2008. For the three months ended June 30, 2009, occupancy expense and furniture and equipment expense decreased to $1,515,000 from $1,742,000, or 13.0%, for the same period in 2008. The decrease for the comparative six and three month periods is due primarily to a decrease in building lease expense and equipment depreciation expense. For the six months ended June 30, 2009, marketing and advertising expense decreased to $605,000 from $1,136,000, or 46.7%, for the same period in 2008. For the three months ended June 30, 2009, advertising and marketing expense decreased to $335,000 from $479,000, or 30.1%, for the same period in 2008. The decrease for the comparative six and three month periods is due primarily to a reduction in marketing costs associated with market research, media space, media production and special events. For the six months ended June 30, 2009, professional services expense increased to $1,374,000 from $1,078,000, or 27.5%, for the same period in 2008. For the three months ended June 30, 2009, professional services expense decreased to $482,000 from $543,000, or 11.2%, for the same period in 2008. The increase for the comparative six month periods is due primarily to an increase in legal fees associated with a litigation settlement related to a previously accrued contingent payment, outsourcing of the Company's internal audit function and other general Company business. For the six months ended June 30, 2009, outside processing expense increased to $2,037,000 from $1,632,000, or 24.8%, for the same period in 2008. For the three months ended June 30, 2009, outside processing expense increased to $1,086,000 from $812,000, or 33.7%, for the same period in 2008. The increase for the comparative six and three month periods is due primarily to costs incurred for computer services and network fees. For the six months ended June 30, 2009, insurance expense increased to $1,428,000 from $545,000, or 162.0%, for the same period in 2008. For the three months ended June 30, 2009, insurance expense increased to $984,000 from $274,000, or 259.1%, for the same period in 2008. The increase in insurance expense for the comparative six and three month periods is due primarily to higher FDIC deposit insurance premiums resulting from the implementation of a new FDIC risk-related premium assessment. Additionally, the increase in insurance expense for the comparative three month periods is impacted by a special industry-wide FDIC deposit insurance premium assessment of $580,000. Income Tax Expense Income tax benefit for the six months ended June 30, 2009 was $1,069,000, a 411.7% decrease as compared to income tax expense of $343,000 for the six months ended June 30, 2008. Income tax benefit for the three months ended June 30, 2009 was $1,361,000, a 930.0% decrease as compared to income tax expense of $164,000 for the three months ended June 30, 2008. Included in income tax expense for the six and three months ended June 30, 2009 and 2008 is a federal tax benefit from a $5,000,000 investment in an affordable housing, corporate tax credit limited partnership. Earnings Per Share Diluted (loss) per common share for the six months ended June 30, 2009 were ($0.14) on average shares outstanding of 5,763,648, a 126.4% decrease as compared to diluted earnings per common share of $0.53 on average shares outstanding of 5,696,650 for the six months ended June 30, 2008. Diluted (loss) per common share for the three months ended June 30, 2009 were ($0.35) on average shares outstanding of 5,791,023, a 234.6% decrease as compared to diluted earnings per common share of $0.26 on average shares outstanding of 5,705,042 for the three months ended June 30, 2008. Assets, Liabilities and Equity Total assets as of June 30, 2009 increased $31,879,000, or 5.2% annualized, to $1,256,743,000 compared to $1,224,864,000 at December 31, 2008. Total loans as of June 30, 2009 increased $931,000, or 0.2% annualized, to $887,236,000 compared to $886,305,000 at December 31, 2008. Total deposits as of June 30, 2009 increased $97,314,000, or 22.9% annualized, to $947,914,000 compared to $850,600,000 at December 31, 2008. Total borrowings as of June 30, 2009 decreased $63,357,000, or 52.1% annualized, to $179,864,000 compared to $243,221,000 at December 31, 2008. Shareholders' equity as of June 30, 2009 decreased $1,695,000, or 2.8% annualized, to $120,794,000 compared to $122,489,000 at December 31, 2008. Included in shareholders' equity is an unrealized loss position on available for sale securities, net of taxes, as of June 30, 2009 of $9,233,000 compared to an unrealized loss position on available for sale securities, net of taxes, of $8,600,000 at December 31, 2008. Quarterly Shareholder and Investor Conference Call VIST Financial will host a quarterly shareholder and investor conference call on Wednesday, July 22, 2009 at 8:30 a.m. EDT. Interested parties can join the conference call and ask questions by dialing 888.857.6930 or listening through the computer by clicking on the following link: http://tinyurl.com/ldax8l 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 a diversified financial services company headquartered in Wyomissing, PA, offering banking, insurance, investments and wealth management services throughout Berks, Southern Schuylkill, Montgomery, Delaware and Philadelphia 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) June 30, December 31, 2009 2008 (unaudited) ----------- Assets Federal funds sold $19,950 $- Investment securities and interest bearing cash 238,212 235,760 Mortgage loans held for sale 5,888 2,283 Loans: Commercial loans 702,044 701,964 Consumer loans 140,602 136,713 Mortgage loans 44,590 47,628 ------ ------ Total loans $887,236 $886,305 ======== ======== Earning assets $1,151,286 $1,124,348 Total assets 1,256,743 1,224,864 Liabilities and shareholders' equity Deposits: Non-interest bearing deposits 111,231 108,645 NOW, money market and savings 375,118 307,210 Time deposits 461,565 434,745 ------- ------- Total deposits $947,914 $850,600 ======== ======== Federal funds purchased $- $53,424 Securities sold under agreements to repurchase 124,875 120,086 Long-term debt 35,000 50,000 Junior subordinated debt 19,989 19,711 Shareholders' equity $120,794 $122,489 Actual common shares outstanding 5,794,200 5,700,075 Book value per common share $16.50 $17.10 Asset Quality Data As Of and For The Period Ended Six Months Twelve Months June 30, December 31, 2009 2008 (unaudited) ----------- Non-accrual loans $22,428 $10,704 Loans past due 90 days or more still accruing 108 140 --- --- Total non-performing loans 22,536 10,844 Other real estate owned 2,238 263 ----- --- Total non-performing assets $24,774 $11,107 ======= ======= Renegotiated troubled debt 2,592 285 Loans outstanding at end of period $887,236 $886,305 Allowance for loan losses 12,029 8,124 Net charge-offs to average loans (annualized) 0.27% 0.46% Allowance for loan losses as a percent of total loans 1.36% 0.92% Allowance for loan losses as a percent of total non-performing loans 53.39% 74.92% VIST FINANCIAL CORP. AND SUBSIDIARIES CONSOLIDATED SELECTED FINANCIAL DATA (Dollar amounts in thousands) Average Balances Average Balances For the Three For the Six Months Ended Months Ended (unaudited) (unaudited) ----------- ----------- June 30, June 30, June 30, June 30, 2009 2008 2009 2008 ---- ---- ---- ---- Assets Federal funds sold $13,298 $- $9,981 $- Investment securities and interest bearing cash 245,954 211,574 240,248 204,798 Mortgage loans held for sale 5,643 1,752 4,446 1,905 Loans: Commercial loans 699,919 674,994 699,717 665,669 Consumer loans 141,335 127,208 140,421 127,065 Mortgage loans 43,979 45,155 45,714 44,810 ------ ------ ------ ------ Total loans $885,233 $847,357 $885,852 $837,544 ======== ======== ======== ======== Interest-earning assets $1,150,128 $1,060,683 $1,140,527 $1,044,247 Goodwill and intangible assets 44,329 43,194 44,414 43,165 Total assets 1,256,512 1,163,502 1,245,992 1,147,054 Liabilities and shareholders' equity Deposits: Non-interest bearing deposits 106,362 106,735 105,905 105,017 Interest bearing deposits: NOW, money market and savings 351,272 327,056 335,782 321,601 Time deposits 479,449 333,455 474,261 325,115 ------- ------- ------- ------- Total Interest-Bearing Deposits 830,721 660,511 810,043 646,716 ------- ------- ------- ------- -------- -------- -------- -------- Total deposits $937,083 $767,246 $915,948 $751,733 ======== ======== ======== ======== Short term borrowings $253 $73,757 $5,057 $79,037 Securities sold under agreements to repurchase 125,003 123,911 122,268 117,530 Long-term debt 41,925 60,000 50,498 59,698 Junior subordinated debt 19,807 20,037 19,760 20,133 Interest-bearing liabilities 1,017,709 938,216 1,007,626 923,114 Shareholders' equity $124,636 $108,088 $123,958 $108,153 VIST FINANCIAL CORP. AND SUBSIDIARIES CONSOLIDATED SELECTED FINANCIAL DATA (Dollar amounts in thousands, except per share data) For the Three For the Six Months Ended Months Ended (unaudited) (unaudited) ----------- ----------- June 30, June 30, June 30, June 30, 2009 2008 2009 2008 ---- ---- ---- ---- Interest income $15,313 $16,348 $30,854 $33,135 Interest expense 7,046 7,288 14,100 15,470 ----- ----- ------ ------ Net interest income 8,267 9,060 16,754 17,665 Provision for loan losses 4,300 1,650 5,125 2,060 ----- ----- ----- ----- Net Interest Income after provision for loan losses 3,967 7,410 11,629 15,605 ----- ----- ------ ------ Customer service fees 596 676 1,254 1,296 Mortgage banking activities 408 342 675 665 Commissions and fees from insurance sales 3,036 2,787 5,994 5,471 Brokerage and investment advisory commissions and fees 152 227 482 464 Earnings on investment in life insurance 108 164 184 332 Other income 550 478 1,620 935 Securities gains, net (196) 61 (37) 202 ---- -- --- --- Total non-interest income 4,654 4,735 10,172 9,365 ----- ----- ------ ----- Salaries and employee benefits 5,754 5,398 11,442 11,128 Occupancy expense 881 1,069 1,950 2,198 Furniture and equipment expense 634 673 1,240 1,345 Other operating expense 4,298 3,373 8,214 6,929 ----- ----- ----- ----- Total non-interest expense 11,567 10,513 22,846 21,600 ------ ------ ------ ------ (Loss) Income before income taxes (2,946) 1,632 (1,045) 3,370 Income taxes (1,361) 164 (1,069) 343 ------ --- ------ --- Net (loss) income $(1,585) $1,468 $24 $3,027 ======= ====== === ====== Per Common Share Data: Basic average shares outstanding 5,791,023 5,692,377 5,763,548 5,682,890 Diluted average shares outstanding 5,791,023 5,705,042 5,763,648 5,696,650 Basic (loss) earnings per common share $(0.35) $0.26 $(0.14) $0.53 Diluted (loss) earnings per common share (0.35) 0.26 (0.14) 0.53 Cash dividends per common share 0.10 0.20 0.20 0.40 Profitability Ratios: Return on average assets -0.51% 0.51% 0.00% 0.53% Return on average shareholders' equity -5.10% 5.46% 0.04% 5.63% Return on average tangible equity (equity less goodwill and intangible assets) -7.92% 9.10% 0.06% 9.37% Net interest margin (fully taxable equivalent) 3.03% 3.58% 3.11% 3.55% Effective tax rate 46.20% 10.05% 102.30% 10.18% VIST FINANCIAL CORP. AND SUBSIDIARIES UNAUDITED CONSOLIDATED BALANCE SHEETS (Dollar amounts in thousands, except share data) June 30, June 30, 2009 2008 ---- ---- Assets Cash and due from banks $20,685 $27,768 Fed funds sold 19,950 - Interest-bearing deposits in banks 342 341 --- --- Total cash and cash equivalents 40,977 28,109 Mortgage loans held for sale 5,888 827 Securities available for sale 234,822 208,262 Securities held to maturity 3,048 3,068 Loans, net of allowance for loan losses 6/2009 - $12,029; 6/2008 - $7,862 875,207 859,797 Premises and equipment, net 6,408 6,768 Identifiable intangible assets 4,491 3,592 Goodwill 39,731 39,509 Bank owned life insurance 18,737 18,189 Other assets 27,434 20,977 SELECTED HIGHLIGHTS ------ ------ Total assets $1,256,743 $1,189,098 Common Stock (VIST) ========== ========== Cash Dividends Declared March 2008 $0.20 Liabilities and June 2008 $0.20 Shareholders' Equity October 2008 $0.10 Liabilities January 2009 $0.10 Deposits: April 2009 $0.10 Non-interest bearing $111,231 $111,140 Common Stock (VIST) Interest Quarterly Closing Price bearing 836,683 668,300 12/31/2007 $17.85 ------- ------- 03/31/2008 $17.77 Total 06/30/2008 $14.23 deposits 947,914 779,440 09/30/2008 $12.00 Securities sold 12/31/2008 $7.73 under agreements 03/31/2009 $7.00 to repurchase 124,875 130,615 06/30/2009 $6.61 Federal funds purchased - 82,746 Long-term debt 35,000 60,000 Junior subordinated debt, at fair value 19,989 20,159 Other liabilities 8,171 12,474 ----- ------ Total liabilities 1,135,949 1,085,434 --------- --------- Shareholders' Equity Preferred stock: $0.01 par value; authorized 1,000,000 shares; $1,000 liquidation preference per share; 25,000 shares issued at June 30, 2009 and no shares issued at June 30, 2008 22,892 - Common stock, $5.00 par value; Authorized 20,000,000 shares; 5,804,684 shares issued at June 30, 2009 and 5,762,380 shares issued at June 30, 2008 29,024 28,812 Stock Warrants 2,307 - Surplus 63,654 64,167 Retained earnings 12,341 17,789 Accumulated other comprehensive loss (9,233) (5,619) Treasury stock; 10,484 shares at June 30, 2009 and 68,354 shares at June 30, 2008, at cost (191) (1,485) ---- ------ Total shareholders' equity 120,794 103,664 ------- ------- Total liabilities and shareholders' equity $1,256,743 $1,189,098 ========== ========== VIST FINANCIAL CORP. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (Dollar amounts in thousands, except share data) Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 ---- ---- ---- ---- Interest Income Interest and fees on loans $12,261 $13,515 $24,603 $27,625 Interest on securities: Taxable 2,709 2,432 5,579 4,686 Tax-exempt 305 218 591 431 Dividend income 33 178 72 384 Interest on federal funds sold 5 - 8 - Other interest income - 5 1 9 --- --- --- --- Total interest income 15,313 16,348 30,854 33,135 Interest Expense Interest on deposits 5,172 5,014 10,326 10,517 Interest on short-term borrowings - 429 17 1,150 Interest on securities sold under agreements to repurchase 1,100 895 2,163 1,849 Interest on long-term debt 412 604 917 1,203 Interest on junior subordinated debt 362 346 677 751 --- --- --- --- Total interest expense 7,046 7,288 14,100 15,470 Net interest income 8,267 9,060 16,754 17,665 Provision for loan losses 4,300 1,650 5,125 2,060 ----- ----- ----- ----- Net interest income after provision for loan losses 3,967 7,410 11,629 15,605 Other income: Customer service fees 596 676 1,254 1,296 Mortgage banking activities, net 408 342 675 665 Commissions and fees from insurance sales 3,036 2,787 5,994 5,471 Broker and investment advisory commissions and fees 152 227 482 464 Earnings on investment in life insurance 108 164 184 332 Gain on sale of loans - 24 - 47 Gain on sales of securities (196) 61 (37) 202 Other income 550 454 1,620 888 --- --- ----- --- Total other income 4,654 4,735 10,172 9,365 Other expense: Salaries and employee benefits 5,754 5,398 11,442 11,128 Occupancy expense 881 1,069 1,950 2,198 Furniture and equipment expense 634 673 1,240 1,345 Marketing and advertising expense 335 479 605 1,136 Identifiable intangible amortization 171 150 342 300 Professional services 482 543 1,374 1,078 Outside processing expense 1,086 812 2,037 1,632 Insurance expense 984 274 1,428 545 Other expense 1,240 1,115 2,428 2,238 ----- ----- ----- ----- Total other expense 11,567 10,513 22,846 21,600 (Loss) Income before income taxes (2,946) 1,632 (1,045) 3,370 Income taxes (1,361) 164 (1,069) 343 ------ --- ------ --- Net (loss) income $(1,585) $1,468 $24 $3,027 ======= ====== === ====== Per Common Share Data Average shares outstanding 5,791,023 5,692,377 5,763,548 5,682,890 Basic (loss) earnings per common share $(0.35) $0.26 $(0.14) $0.53 Average shares outstanding for diluted earnings per share 5,791,023 5,705,042 5,763,648 5,696,650 Diluted (loss) earnings per common share $(0.35) $0.26 $(0.14) $0.53 Cash dividends declared per common share $0.10 $0.20 $0.20 $0.40 DATASOURCE: VIST Financial Corp. CONTACT: Edward C. Barrett, Chief Financial Officer of VIST Financial Corp., +1-610-603-7251 Web Site: http://www.vistfc.com/

Copyright