ViewPoint Financial Group Reports Operating Results (10-Q)
Viewpoint Financial Group has a market cap of $402.1 million; its shares were traded at around $16.13 with a P/E ratio of 89.6 and P/S ratio of 3.1. The dividend yield of Viewpoint Financial Group stocks is 1.2%.VPFG is in the portfolios of John Keeley of Keeley Fund Management, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:General. Total assets increased by $97.9 million, or 4.1%, to $2.48 billion at March 31, 2010, from $2.38 billion at December 31, 2009. The rise in total assets was primarily due to a $61.3 million, or 12.7%, increase in securities available for sale, $19.6 million in cash and cash equivalents, and a $17.7 million increase in gross loans (including an increase in loans held for sale of $17.4 million.) Asset growth was funded by an increase in deposits of $103.6 million, or 5.8%.
Loans. Gross loans (including $358.8 million in mortgage loans held for sale) increased by $17.7 million, or 1.2%, from $1.46 billion at December 31, 2009 to $1.48 billion at March 31, 2010.
Mortgage loans held for sale increased $17.4 million, or 5.1% from December 31, 2009, and consisted of $331.1 million of Purchase Program loans purchased for sale under our standard loan participation agreement and $27.7 million of loans originated for sale by our mortgage banking subsidiary, VPBM. Our Purchase Program enables our mortgage banking company customers to close conforming one- to four-family real estate loans in their own name and temporarily finance their inventory of these closed loans until the loans are sold to investors approved by the Company. The Purchase Program had 22 clients with approved maximum borrowing amounts ranging from $15.0 million to $30.0 million at March 31, 2010. During the first quarter of 2010, the average outstanding balance per client was $11.2 million. The Purchase Program generated $566 thousand in fee income for the quarter ended March 31, 2010, and also produced interest income of $3.0 million, which was an increase of $1.4 million from the quarter ended March 31, 2009. VPBM originated $96.1 million in one-to-four family mortgage loans in the three months ended March 31, 2010, and sold $88.2 million to investors, generating a net gain on sale of loans of $2.7 million. Also, $7.0 million in VPBM originated loans were retained in our portfolio. One- to four- family mortgage loans held in portfolio declined by $12.4 million, or 3.0%, from December 31, 2009. Since we added fewer loans to our portfolio, paydowns exceeded new loans added to the portfolio. For asset/liability and interest rate risk management, the Company follows guidelines set forth by the Companys Asset/Liability Management Committee to determine whether to keep loans in portfolio or sell with a servicing release premium. The Company evaluates price, yield and duration, and credit when determining the amount of loans sold or retained.
Our commercial non-mortgage loans increased $15.5 million, or 55.3%, from December 31, 2009 to March 31, 2010. $12.0 million of the growth this quarter is attributed to two loans made to purchasers of discounted, performing, commercial real estate notes, with the notes, deeds of trust and other loan-related documents serving as collateral for our loan. In both cases, the structure of the loan required the borrowers to have a significant new cash equity position in the discounted notes which resulted in a loan to discounted purchase price percentage of between 57% and 64% and a loan to value ratio of between 35% and 37% of the current appraised as-is value of the underlying real estate securing the notes.
ViewPoint Bankers Mortgage. At March 31, 2010, VPBM had total assets of $39.5 million, which primarily consisted of $27.7 million in one- to four- family mortgage loans held for sale. VPBM operated at a net loss for the three months ended March 31, 2010 of $383,000 compared to net income of $260,000 for the three months ended March 31, 2009, as production declined from $191.7 million in the first quarter 2009 to $96.4 million in the first quarter 2010. Refinance originations were down 68% compared to the same time period in 2009. VPBM operates 14 loan production offices in Texas and has 130 employees.
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