##### Table of Contents





UNITED STATES
    SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549
    FORM 10-K
  (Mark One)x

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES
    EXCHANGE ACT OF 1934For the fiscal year ended December 31, 2008ORo

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES
    EXCHANGE ACT OF 1934For the transition period from
    
    to   Commission file number
    001-32992
 VIEWPOINT FINANCIAL
    GROUP
 (Exact name of registrant as
    specified in its charter)
  United States(State or other jurisdiction of
    incorporation or organization)

20-4484783(I.R.S. Employer Identification
    No.)1309 W. 15th Street,

    Plano, Texas(Address of Principal Executive
    Offices)

75075(Zip
    Code)   Registrants telephone number, including area code:
    (972) 578-5000
  Securities registered pursuant to Section 12(b) of the
    Act:
  Title of Each Class

Name of Each Exchange on Which
    RegisteredCommon Stock, par value $0.01 per share

Nasdaq Global Select Market   Securities registered pursuant to Section 12(g) of the
    Act: None
  o x
  o x
  x o
  Regulation S-K Form 10-K Form 10-K. x
  Rule 12b-2
  o x
  o o
  Rule 12b-2 o x
      DOCUMENTS
    INCORPORATED BY REFERENCE:
  Document

Part of Form 10-KPortions of the definitive Proxy Statement to
    be used in conjunction with the Registrants
    Annual Meeting of Shareholders.

Part III




---



##### 





VIEWPOINT
    FINANCIAL GROUP AND SUBSIDIARY
  FORM 10-K
  December 31,
    2008
  INDEX
   
 PagePART IItem 1


Business


3Item 1A


Risk Factors


34Item 1B


Unresolved Staff Comments


39Item 2


Properties


39Item 3


Legal Proceedings


44Item 4


Submission of Matters to a Vote of Security
    Holders


44PART IIItem 5


Market for Registrants Common Equity,
    Related Shareholder Matters and Issuer Purchases of Equity
    Securities


45Item 6


Selected Financial Data


47Item 7


Managements Discussion and Analysis of
    Financial Condition and Results of Operations


49Item 7A


Quantitative and Qualitative Disclosures about
    Market Risk


64Item 8


Financial Statements and Supplementary Data


68Item 9


Changes in and Disagreements with Accountants on
    Accounting and Financial Disclosure


111Item 9A


Controls and Procedures


111Item 9B


Other Information


111PART IIIItem 10


Directors, Executive Officers and Corporate
    Governance


111Item 11


Executive Compensation


112Item 12


Security Ownership of Certain Beneficial Owners
    and Management and Related Shareholder Matters


112Item 13


Certain Relationships and Related Transactions,
    and Director Independence


112Item 14


Principal Accountant Fees and Services


112PART IVItem 15


Exhibits, Financial Statement Schedules


112Signatures


114EX-21EX-23EX-31.1EX-31.2EX-32




---



##### Table of Contents



PART I  Item 1.
    Business  Special
    Note Regarding Forward-Looking Statements
  Form 10-K,
    General
         3




---



##### Table of Contents



Market
    Areas
  Form 10-K Form 10-K
     4




---



##### Table of Contents



Lending
    Activities
    December 31,2008


2007


2006


2005


2004Amount


Percent


Amount


Percent


Amount


Percent


Amount


Percent


Amount


Percent(Dollars in Thousands)Real Estate Loans:One- to four-family

$
499,464



39.96
%

$
332,780



36.40
%

$
284,064



29.33
%

$
271,924



25.35
%

$
221,932



20.48
%Commercial


436,483



34.92



252,140



27.58



183,670



18.97



99,334



9.26



45,667



4.22Home equity


101,021



8.08



85,064



9.31



83,899



8.66



85,365



7.96



79,548



7.34Total real estate loans


1,036,968



82.96



669,984



73.29



551,633



56.96



456,623



42.57



347,147



32.04Other Loans:Consumer loans:Automobile indirect


38,837



3.11



104,156



11.39



219,147



22.63



364,046



33.94



450,971



41.62Automobile direct


73,033



5.84



98,817



10.81



151,861



15.68



196,254



18.29



224,021



20.68Other secured


14,107



1.13



12,626



1.38



14,678



1.52



18,263



1.70



21,242



1.96Lines of credit/unsecured


15,192



1.21



16,351



1.79



21,284



2.20



28,804



2.68



34,722



3.20Total consumer loans


141,169



11.29



231,950



25.37



406,970



42.03



607,367



56.61



730,956



67.46Commercial non-mortgage


71,845



5.75



12,278



1.34



9,780



1.01



8,813



0.82



5,446



0.50Total loans


1,249,982



100.00
%


914,212



100.00
%


968,383



100.00
%


1,072,803



100.00
%


1,083,549



100.00
%Less:Deferred fees and discounts


(1,206
)






603







3,576







8,061







11,323Allowance for loan losses


(9,068
)






(6,165
)






(6,507
)






(7,697
)






(8,424
)Total loans receivable, net

$
1,239,708






$
908,650






$
965,452






$
1,073,167






$
1,086,448  5




---



##### Table of Contents



December 31,2008


2007


2006


2005


2004Amount


Percent


Amount


Percent


Amount


Percent


Amount


Percent


Amount


Percent(Dollars in Thousands)Fixed rate Loans:Real Estate:One- to four-family

$
375,421



30.04
%

$
302,193



33.06
%

$
248,492



25.66
%

$
227,697



21.23
%

$
173,800



16.04
%Commercial


271,830



21.75



179,826



19.67



141,875



14.65



66,622



6.21



32,416



2.99Home equity


84,124



6.73



70,643



7.73



68,795



7.10



68,050



6.35



65,208



6.02Total real estate loans


731,375



58.52



552,662



60.46



459,162



47.41



362,369



33.79



271,424



25.05Consumer:Automobile indirect


38,837



3.11



104,156



11.39



219,115



22.63



364,046



33.94



450,971



41.62Automobile direct


73,033



5.84



98,817



10.81



151,816



15.68



196,254



18.29



224,020



20.68Other secured


5,238



0.42



5,454



0.60



7,050



0.73



8,999



0.84



12,512



1.15Lines of credit/unsecured


3,456



0.27



4,168



0.46



7,652



0.79



11,158



1.04



13,026



1.20Total consumer


120,564



9.64



212,595



23.26



385,633



39.83



580,457



54.11



700,529



64.65Commercial non-mortgage


10,213



0.82



9,359



1.02



7,979



0.82



5,004



0.47



3,720



0.34Total fixed rate loans


862,152



68.98



774,616



84.74



852,774



88.06



947,830



88.37



975,673



90.04Adjustable Rate Loans:Real Estate:One-to four-family


124,043



9.92



30,587



3.34



35,572



3.67



44,227



4.12



48,132



4.44Commercial


164,653



13.17



72,314



7.91



41,795



4.32



32,712



3.05



13,251



1.23Home equity


16,897



1.35



14,421



1.58



15,104



1.56



17,315



1.61



14,340



1.32Total real estate loans


305,593



24.44



117,322



12.83



92,471



9.55



94,254



8.78



75,723



6.99Consumer:Automobile indirect


















32



















Automobile direct


















45















1



Other secured


8,869



0.71



7,172



0.78



7,628



0.79



9,264



0.86



8,730



0.81Lines of credit/unsecured


11,736



0.94



12,183



1.33



13,632



1.41



17,646



1.64



21,696



2.00Total consumer


20,605



1.65



19,355



2.11



21,337



2.20



26,910



2.50



30,427



2.81Commercial non-mortgage


61,632



4.93



2,919



0.32



1,801



0.19



3,809



0.35



1,726



0.16Total adjustable rate loans


387,830



31.02



139,596



15.26



115,609



11.94



124,973



11.63



107,876



9.96Total loans


1,249,982



100.00
%


914,212



100.00
%


968,383



100.00
%


1,072,803



100.00
%


1,083,549



100.00
%Less:Deferred fees and discounts


(1,206
)






603







3,576







8,061







11,323Allowance for loan losses


(9,068
)






(6,165
)






(6,507
)






(7,697
)






(8,424
)Total loans receivable, net

$
1,239,708






$
908,650






$
965,452






$
1,073,167






$
1,086,448   6




---



##### Table of Contents



due-on-sale
  Mortgage


Consumer


Commercial


TotalWeighted





Weighted





Weighted





WeightedDue During Years




Average





Average





Average





AverageEnding December 31,

Amount


Rate


Amount


Rate


Amount


Rate


Amount


Rate(Dollars in Thousands)2009(1)

$
1,772



5.68
%

$
35,283



6.73
%

$
75,458



4.13
%

$
112,513



4.83
%2010 to 2013


23,265



5.72



99,969



6.71



180,848



6.50



304,082



6.512014 and following


575,448



5.87



5,917



7.02



252,022



6.38



833,387



6.03Total

$
600,485






$
141,169






$
508,328






$
1,249,982    (1)
    
    Includes demand loans, loans having no stated maturity, and
    overdraft loans.    Lending Authority.
    One- to Four-Family Real Estate Lending.
     7




---



##### Table of Contents



8




---



##### Table of Contents



Commercial Real Estate Lending.
      and/or
    Home Equity Lending.
 9




---



##### Table of Contents



Consumer Lending.
            Commercial Non-Mortgage Lending.
   10




---



##### Table of Contents



Warehouse Lending.
      Loan
    Originations, Purchases, Sales, Repayments and
    Servicing
       11




---



##### Table of Contents



12




---



##### Table of Contents



Year Ended December 31,2008


2007


2006(In thousands)Originations by type:Adjustable rate:Real estateOne- to four-family

$
111,677


$
5,975


$
4,465Commercial


107,956



43,748



9,905Home equity


8,939



3,064



4,046ConsumerAutomobile indirect










Automobile direct










26Other secured


1,278



5,621



6,150Lines of credit/unsecured


1,155



703



793Commercial non-mortgage


105,905
1


4,489



755Total adjustable rate


336,910



63,600



26,140Fixed rate:Real estateOne- to four-family


393,927



121,209



50,162Commercial


159,303



75,655



93,304Home equity


34,599



24,276



20,542ConsumerAutomobile indirect






181



17,361Automobile direct


31,643



27,216



56,292Other secured


2,882



2,299



2,628Lines of credit/unsecured


2,881



2,241



4,141Commercial non-mortgage


8,692



3,767



5,668Total fixed rate


633,927



256,844



250,098Total loans originated


970,837



320,444



276,238Purchases:Real estate-one-to four-family






44,407



18,519Real estate-warehouse


296,572







Real estate  commercial


3,376



1,160



8,887Total loans purchased


299,948



45,567



27,406Sales and Repayments:Real estateOne-to four-family


285,417



77,418



26,221Warehouse lines


159,089







Commercial


30,200



1,128



7,408Consumer


813



4,012



3,816Total loans sold


475,519



82,558



37,445Principal repayments


459,496



337,624



370,619Total reductions


935,015



420,182



408,064Increase (decrease) in other items, net


(4,712
)


(2,631
)


(3,295
)Net increase (decrease)

$
331,058


$
(56,802
)

$
(107,715
)    1

    Includes $93.4 million of participations in warehouse lines
    extended by other financial institutions or multi-bank warehouse
    lending syndications originated with other banks. These are
    classified as secured commercial lines of credit. Does not
    include $155.0 million of warehouse lines made under our
    standard loan participation agreement, which are classified as
    mortgage loans held for sale. 13




---



##### Table of Contents



Asset
    Quality
         14




---



##### Table of Contents



Delinquent Loans.
  Loans Delinquent For:Total Loans Delinquent60-89 Days


90 Days and Over


60 Days or MorePercent








Percent








Percentof Loan








of Loan








of LoanNumber


Amount


Category


Number


Amount


Category


Number


Amount


Category(Dollars in Thousands)Real Estate Loans:One- to four-family


11


$
1,294



0.26
%


13


$
1,423



0.28
%


24


$
2,717



0.54
%Commercial


1



894



0.20















1



894



0.20Home equity


5



194



0.19



2



61



0.06



7



255



0.25Total real estate loans


17



2,382



0.23



15



1,484



0.14



32



3,866



0.37Other Loans:Consumer Loans:Automobile indirect


20



169



0.44



11



83



0.21



31



252



0.65Automobile direct


9



55



0.08



8



54



0.07



17



109



0.15Other secured


2



2



0.01



1



5



0.04



3



7



0.05Lines of credit/unsecured


16



79



0.52



27



109



0.72



43



188



1.24Total consumer loans


47



305



0.22



47



251



0.18



94



556



0.40Commercial non-mortgage loans


2



189



0.26



5



174



0.24



7



363



0.50Total loans


66


$
2,876



0.23
%


67


$
1,909



0.15
%


133


$
4,785



0.38
%Total as a percentage of gross loans










0.23
%










0.15
%










0.38
%  15




---



##### Table of Contents



Non-performing Assets. and/or
  December 31,2008

2007

2006

2005

2004(Dollars in Thousands)Non-accruing loans:One-to four-family

$
1,423

$
689

$


$
139

$
16Commercial real estate





989








Home equity


173


22


72


77


5Automobile indirect


190


185


207


1,084


2,827Automobile direct


124


86


145


223


1,464Other secured


5


1





903


20Lines of credit/unsecured


128


63


177


136


105Commercial non-mortgage


174


67


703


30


Total


2,217


2,102


1,304


2,592


4,437Accruing loans delinquent more than 90 days:One- to four-family














301Commercial real estate














68Home equity














25Automobile direct








30





Commercial non-mortgage














50Total








30





444Troubled debt restructurings:One- to four-family


93











Commercial real estate


1,796











Home equity


67











Automobile indirect


231


607


592





413Automobile direct


209


759


1,365


1,669


1,651Other secured





5


4


86


294Lines of credit/unsecured


132


40


76


248


246Commercial non-mortgage














Total


2,528


1,411


2,037


2,003


2,604Foreclosed assets:One- to four-family


718


615


460


50


113Commercial real estate


843











Automobile indirect


56


212


146


310


662Automobile direct


24


13


45


159


341Other


3











Commercial non-mortgage








4





Total


1,644


840


655


519


1,116Total non-performing assets

$
6,389

$
4,353

$
4,026

$
5,114

$
8,601Total non-performing assets as a percentage of total assets


0.29%


0.26%


0.26%


0.36%


0.61%Total non-performing loans as a percentage of gross loans


0.38%


0.38%


0.35%


0.43%


0.69%  16




---



##### Table of Contents



Other Loans of Concern.
  Classified Assets.
     17




---



##### Table of Contents



At December 31,2008


2007Loss

$



$
Doubtful


1,106



506Substandard


11,186
1


3,860Total

$
12,292


$
4,366   1
  Allowance for Loan Losses.
 18




---



##### Table of Contents



Year Ended December 31,2008


2007


2006


2005


2004(Dollars in Thousands)Balance at beginning of period

$
6,165


$
6,507


$
7,697


$
8,424


$
8,655Charge-offs:One- to four-family


164



120



83



127



205Commercial


180















Home equity


41



32



62



43



52Total real estate loans


385



152



145



170



257Consumer:Automobile indirect


1,493



2,251



2,670



4,575



4,617Automobile direct


424



620



518



678



374Other secured


39



31



21



869



795Lines of credit/unsecured


1,232



1,862



1,510



754



791Total consumer


3,188



4,764



4,719



6,876



6,577Commercial non-mortgage


453



164



102



204



52Total charge-offs


4,026



5,080



4,966



7,250



6,886Recoveries:One- to four-family


13



14



29







Commercial


















Home equity


4



13



39







Total real estate loans


17



27



68







Consumer:Automobile indirect


305



700



744



102



161Automobile direct


142



305



230



72



91Other secured


23



14



8



102



113Lines of credit/unsecured


249



376



156



127



91Total consumer


719



1,395



1,138



403



456Commercial non-mortgage


22



48



5







Total recoveries


758



1,470



1,211



403



456Net charge-offs


3,268



3,610



3,755



6,847



6,430Additions charged to operations


6,171



3,268



2,565



6,120



6,199Balance at end of period

$
9,068


$
6,165


$
6,507


$
7,697


$
8,424Ratio of net charge-offs during theperiod to average loans outstanding during the period


0.30
%


0.39
%


0.37
%


0.63
%


0.61
%Ratio of net charge-offs during theperiod to average non-performing assets


60.85
%


86.16
%


82.17
%


99.84
%


73.39
%Allowance as a percentage on non- performing loans


191.11
%


175.49
%


193.03
%


167.51
%


112.55
%Allowance as a percentage of gross loans (end of period)


0.73
%


0.67
%


0.67
%


0.72
%


0.78
%  19




---



##### Table of Contents



December 31,2008


2007


2006


2005


2004Percent





Percent





Percent





Percent





Percentof





of





of





of





ofLoans in





Loans in





Loans in





Loans in





Loans inEach





Each





Each





Each





EachCategory





Category





Category





Category





Categoryto





to





to





to





toTotal





Total





Total





Total





TotalAmount


Loans


Amount


Loans


Amount


Loans


Amount


Loans


Amount


Loans(Dollars in Thousands)Real Estate:One- to four-family

$
1,675



39.96
%

$
1,201



36.40
%

$
449



29.33
%

$
311



25.35
%

$
349



20.48
%Commercial real estate


4,175



34.92



2,597



27.58



2,025



18.97



659



9.26



98



4.22Home equity


460



8.08



170



9.31



182



8.66



86



7.96



80



7.34Consumer:Automobile indirect


503



3.11



946



11.39



2,232



22.63



3,608



33.94



4,610



41.62Automobile direct


262



5.84



278



10.81



526



15.68



1,848



18.29



2,086



20.68Other secured


15



1.13



13



1.38



9



1.52



364



1.70



119



1.96Lines of credit/unsecured


639



1.21



626



1.79



694



2.20



592



2.68



1,049



3.20Commercial non-mortgage


1,339



5.75



334



1.34



390



1.01



229



0.82



33



0.50Total

$
9,068



100.00
%

$
6,165



100.00
%

$
6,507



100.00
%

$
7,697



100.00
%

$
8,424



100.00
%  20




---



##### Table of Contents



Investment
    Activities
          EITF 99-20
   21




---



##### Table of Contents



December 31,2008


2007


2006Amortized





Amortized





AmortizedCost


Fair Value


Cost


Fair Value


Cost


Fair Value(Dollars in Thousands)Available for Sale:Investment securities:US Government and agency

$
18,502


$
18,740


$
35,006


$
35,152


$
30,059


$
29,475SBA pools


8,313



8,100















Collateralized debt obligations


7,940



7,940



21,496



19,616







Agency collateralized mortgage obligations


313,391



310,065



347,376



349,234



214,788



215,011Agency mortgage-backed securities


137,338



138,171



137,678



138,873



79,782



80,037Total available for sale


485,484



483,016



541,556



542,875



324,629



324,523Held to maturity:Investment securities:US Government and agency


9,992



10,143















Municipal bonds


9,384



9,642















Agency collateralized mortgage obligations


12,304



12,696



5,688



5,683



11,271



11,236Agency mortgage-backed securities


140,663



144,098



14,403



14,519







Total held to maturity


172,343



176,579



20,091



20,202



11,271



11,236Total investment securities


657,827



659,595



561,647



563,077



335,900



335,759Federal Home Loan Bank stock


18,069



18,069



6,241



6,241



3,724



3,724Total

$
675,896


$
677,664


$
567,888


$
569,318


$
339,624


$
339,483  22




---



##### Table of Contents



1 year or less


Over 1 to 5 years


Over 5 to 10 years


Over 10 years


Total SecuritiesWeighted





Weighted





Weighted





Weighted





WeightedAmortized


Average


Amortized


Average


Amortized


Average


Amortized


Average


Amortized


Average


FairCost


Yield


Cost


Yield


Cost


Yield


Cost


Yield


Cost


Yield


Value(Dollars in Thousands)Securities available for sale:US Government and agency

$
13,002



3.97
%

$
5,500



5.50
%

$





%

$





%

$
18,502



4.43
%

$
18,740SBA pools


















8,313



2.82











8,313



2.82



8,100Collateralized debt obligations


























7,940



11.11



7,940



11.11



7,940Agency mortgage-backed and collateralized mortgage obligations


2,254



5.33



11,437



5.25



44,413



5.29



392,625



4.30



450,729



4.43



448,236Total securities available for sale


15,256



4.17



16,937



5.33



52,726



4.90



400,565



4.44



485,484



4.51



483,016Held to maturity:US Government and agency










9,992



4.78



















9,992



4.78



10,143Municipal bonds










1,277



3.52



6,745



3.65



1,362



4.02



9,384



3.69



9,642Agency mortgage-backed and collateralized mortgage obligations


461



0.97











9,666



4.36



142,840



4.62



152,967



4.59



156,794Total securities held to maturity


461



0.97



11,269



4.63



16,411



4.07



144,202



4.61



172,343



4.55



176,579Total investment securities

$
15,717



4.08
%

$
28,206



5.05
%

$
69,137



4.70
%

$
544,767



4.49
%

$
657,827



4.52
%

$
659,595  23




---



##### Table of Contents



Sources
    of Funds
  General.
  Deposits. ® ® ® ®
        Year Ended December 31,2008


2007


2006(Dollars in Thousands)Opening balance

$
1,297,593


$
1,234,881


$
1,257,727Net of deposits and withdrawals


214,968



25,639



(51,764
)Interest credited


35,529



37,073



28,918Ending balance

$
1,548,090


$
1,297,593


$
1,234,881Net increase (decrease)

$
250,497


$
62,712


$
(22,846
)Percent increase (decrease)


19.30
%


5.08
%


(1.82
)%  24




---



##### Table of Contents



December 31,2008


2007


2006Percent





Percent





PercentAmount


of Total


Amount


of Total


Amount


of Total(Dollars in Thousands)Transactions and Savings Deposits:Non- interest-bearing demand

$
172,395



11.13
%

$
190,163



14.66
%

$
211,301



17.11
%Interest bearing demand


98,884



6.39



71,934



5.54



69,711



5.64Savings


144,530



9.34



156,129



12.03



198,546



16.08Money market


482,525



31.17



414,483



31.94



438,570



35.52IRA


8,188



0.53



8,116



0.63



10,590



0.86Total non-certificates


906,522



58.56



840,825



64.80



928,718



75.21Certificates:0.00 - 1.99%


11,078



0.71



89



0.01



487



.042.00 - 3.99%


411,501



26.58



22,973



1.77



36,672



2.974.00 - 5.99%


218,989



14.15



433,155



33.38



269,004



21.786.00% and over










551



0.04







Total certificates


641,568



41.44



456,768



35.20



306,163



24.79Total deposits

$
1,548,090



100.00
%

$
1,297,593



100.00
%

$
1,234,881



100.00
%     2.00-

4.00-

6.00%



Percent0.00-1.99%


3.99%

5.99%

and over

Total

of TotalCertificate accounts maturing in quarter ending:March 31, 2009

$
3,258


$
100,072

$
40,726

$


$
144,056


22.45%June 30, 2009


3,266



139,884


6,082





149,232


23.26September 30, 2009


2,143



66,641


10,289





79,073


12.33December 31, 2009


1,350



66,256


99,397





167,003


26.03March 31, 2010


1,056



13,228


5,960





20,244


3.16June 30, 2010


5



17,113


9,334





26,452


4.12September 30, 2010






1,502


5,810





7,312


1.14December 31, 2010






1,725


1,304





3,029


0.47March 31, 2011






385


1,093





1,478


0.23June 30, 2011






702


1,122





1,824


0.28September 30, 2011






405


1,409





1,814


0.28December 31, 2011






248


1,654





1,902


0.30Thereafter






3,340


34,809





38,149


5.95Total

$
11,078


$
411,501

$
218,989

$


$
641,568


100.00%Percent of Total


1.73%



64.14%


34.13%


%


100.00%  25




---



##### Table of Contents



Maturity3 Months


Over 3 to


Over 6 to


Over 12or Less


6 Months


12 Months


Months


Total(In thousands)Certificates of deposit less than $100,000

$
49,843


$
47,282


$
68,591


$
41,390


$
207,106Certificates of deposit of $100,000 or more


24,735



22,319



71,782



31,857



150,693Public
    funds(1)


69,478



79,631



105,703



28,957



283,769Total certificates of deposit

$
144,056


$
149,232


$
246,076


$
102,204


$
641,568     (1)
    
    Deposits from governmental and other public entities.  Borrowings.
        Year Ended December 31,2008


2007


2006(In thousands)Maximum Balance:FHLB advances

$
410,841


$
128,451


$
55,762Repurchase agreement


25,000







Average Balance Outstanding:FHLB advances

$
258,616


$
83,501


$
51,187Repurchase agreement


25,000







  26




---



##### Table of Contents



December 31,2008

2007

2006(Dollars in Thousands)FHLB advances

$
410,841

$
128,451

$
55,762Repurchase agreement


25,000





Weighted average interest rate of FHLB advances during the period


4.00%


4.85%


4.66%Weighted average interest rate of FHLB advances at end of period


2.52%


3.15%


4.28%Weighted average interest rate of repurchase agreement during
    the period


1.62%





Weighted average interest rate of repurchase agreement at end of
    period


1.62%





   How We
    Are Regulated
  General.
    cease-and-desist
    ViewPoint Bank.
  Office of Thrift Supervision.
 27




---



##### Table of Contents



Insurance of Accounts and Regulation by the
    FDIC.
   28




---



##### Table of Contents



Transactions with Affiliates.
  ViewPoint Financial Group and ViewPoint
    MHC.
 29




---



##### Table of Contents



Capital Requirements for ViewPoint
    Bank.
             30




---



##### Table of Contents



Capital Requirements for ViewPoint Financial Group and
    ViewPoint MHC.
  Community Reinvestment and Consumer Protection
    Laws. Truth-in-Lending
    Bank Secrecy Act / Anti-Money Laundering
    Laws.
  Limitations on Dividends and Other Capital
    Distributions. year-to-date
   31




---



##### Table of Contents



Federal Securities Law.
        Taxation
  Federal
    Taxation
  General.
  Method of Accounting.
  Minimum Tax.
 32




---



##### Table of Contents



Net Operating Loss Carryovers.
  Corporate Dividends-Received Deduction.
  State
    Taxation
    Subsidiary
    and Other Activities
      Competition
    Executive
    Officers of ViewPoint Financial Group and ViewPoint
    Bank
  Garold (Gary) R. Base.
 33




---



##### Table of Contents



Mark E. Hord.
  Pathie (Patti) E. McKee.
  James C. Parks.
  Rick M. Robertson.
  Employees
    Internet
    Website
  Form 10-K. Form 10-K, Form 10-Q Form 8-K,
  Item 1A.
    Risk
    Factors   34




---



##### Table of Contents



If
    economic conditions deteriorate in our primary market, our
    results of operations and financial condition could be adversely
    impacted as borrowers ability to repay loans declines and
    the value of the collateral securing loans decreases.
    Negative
    developments in the financial industry and credit markets may
    adversely impact our financial condition and results of
    operations.
  sub-prime
    Recent
    legislative and regulatory initiatives to address difficult
    market and economic conditions may not stabilize the U.S.
    banking system.
   35




---



##### Table of Contents



sub-prime
  Liquidity
    risk could impair our ability to fund operations and jeopardize
    our financial condition.
    We may
    elect or be compelled to seek additional capital in the future,
    but that capital may not be available when it is
    needed.
      Our loan
    portfolio possesses increased risk due to our increasing
    percentage of commercial real estate and commercial non-mortgage
    loans.
   36




---



##### Table of Contents



Our
    consumer loan portfolio possesses increased risk.
    If our
    allowance for loan losses is not sufficient to cover actual loan
    losses, our earnings could decrease.
    Our
    securities portfolio may be negatively impacted by fluctuations
    in market value and interest rates, potentially having an
    adverse effect on our financial condition.
  and/or other-than-temporary
 37




---



##### Table of Contents



available-for-sale available-for-sale other-than-temporary
  Our
    strategies to modify our interest rate risk profile may be
    difficult to implement.
  and/or
    and/or
  Changes
    in laws, government regulation, and monetary policy may have a
    material effect on our results of operations.
     38




---



##### Table of Contents



The loss
    of key employees could negatively affect us from a production
    standpoint.
    Strong competition within our market area may limit our
    growth and profitability.
    Our business is geographically concentrated in Texas and a
    downturn in conditions in the state could reduce our
    profits.
    Electronic fraud may affect our earnings.
    Item 1B.
    Unresolved
    Staff Comments    Item 2.
    Properties     39




---



##### Table of Contents



Lease

Net BookSquare

Owned or

Expiration

Value atLocation

Footage

Leased

Date

12/31/08(Dollars in Thousands)ADMINISTRATIVE OFFICES:Contact Center

31,762

Owned

N/A

$
2,7222101 Custer Rd.
    Plano, TX 75075Pitman East

54,409

Owned

N/A

$
4,4071201 W 15th St.
    Plano, TX 75075Pitman West (Main Office)

53,022

Owned

N/A

$
1,8541309 W. 15th St. 
    Plano, TX 75075Richardson Annex

3,800

Owned

N/A

$
62700 E. Arapaho
    Richardson, TX 75081Warehouse Lending

657

Leased

01/31/10


N/A13984 W. Bowles Ave, Suite 200
    Littleton, CO 80127BANK OFFICES:Addison

6,730

Leased

04/30/13


N/A4560 Beltline Rd. Suite 100 
    Addison, TX 75001Allen

4,500

Owned

N/A

$
368321 East McDermott
    Allen, TX 75002Carrollton

6,800

Owned

N/A

$
1,1261801 Keller Springs
    Carrollton, TX 75006Carrollton Kroger**

484

Leased

12/12/10


N/A4038 Old Denton Rd.
    Carrollton, TX 75007Coppell

5,674

Owned

N/A

$
1,598687 Denton Tap Rd.
    Coppell, TX 75019East Plano

5,900

Owned

N/A

$
1,3102501 East Plano Pkwy
    Plano, TX 75074Forest Lane Albertsons**

471

Leased

07/13/13


N/A3630 Forest Lane
    Dallas, TX 75234 40




---



##### Table of Contents



Lease

Net BookSquare

Owned or

Expiration

Value atLocation

Footage

Leased

Date

12/31/08(Dollars in Thousands)Frisco

4,800

Owned

N/A

$
1,0123833 Preston Rd. 
    Frisco, TX 75034Garland

4,800

Owned

N/A

$
8002218 N. Jupiter Rd.
    Garland, TX 75046Garland Tom Thumb**

550

Leased

06/30/12


N/A2645 Arapaho Rd.
    Garland, TX 75044Grand Prairie Albertsons*

452

Leased

08/08/12


N/A215 N. Carrier Pkwy.
    Grand Prairie, TX 75050Lake Highlands Albertsons*

391

Leased

11/14/11


N/A10203 E. Northwest Hwy.
    Dallas, TX 75238Los Rios Kroger**

473

Leased

04/21/09


N/A1047 14th St. 
    Plano, TX 75074McKinney

4,500

Owned

N/A

$
6292500 W. Virginia Pkwy
    McKinney, TX 75071McKinney Albertsons**

425

Leased

08/29/12


N/A6800 W. Virginia Pkwy
    McKinney, TX 75071McKinney Mini

1,800

Owned

N/A

$
91231 N. Chestnut
    McKinney, TX 75069Midway Albertsons**

325

Leased

12/28/14


N/A4349 W. Northwest Hwy
    Dallas, TX 75220North Dallas Tom Thumb**

550

Leased

04/30/12


N/A18212 Preston Rd.
    Dallas, TX 75252Northeast Tarrant County

4,338

Owned

N/A

$
1,7123040 State Hwy. 121
    Euless, TX 76039NW Frisco Albertsons**

470

Leased

07/13/13


N/A309 Main St.
    Frisco, TX 75034Oak Cliff

2,800

Leased

09/30/13


N/A2498 W. Illinois Ave.
    Dallas, TX 75233Plano Albertsons**

311

Leased

06/19/11


N/A1301 Custer Rd. Suite 200
    Plano, TX 75075 41




---



##### Table of Contents



Lease

Net BookSquare

Owned or

Expiration

Value atLocation

Footage

Leased

Date

12/31/08(Dollars in Thousands)Plano Central

1,681

Owned

N/A

$
8121201 W 15th St.
    Plano, TX 75075Richardson

22,000

Owned

N/A

$
827720 E. Arapaho
    Richardson, TX 75081Richardson Mini

2,500

Owned

N/A

$
1131775 N. Plano Rd.
    Richardson, TX 75081Tollroad Express

2,000

Owned

N/A

$
5325900 W. Park Blvd.
    Plano, TX 75093West Allen

4,800

Owned

N/A

$
815225 S. Custer Rd.
    Allen, TX 75013West Plano

22,800

Owned

N/A

$
1,8935400 Independence Pkwy
    Plano, TX 75075West Richardson

4,500

Owned

N/A

$
5251280 W. Campbell Rd.
    Richardson, TX 75080Wylie Albertsons*

425

Leased

08/29/12


N/A921 Westgate Way
    Wylie, TX 75098   Lease

Net BookSquare



Expiration

Value atLocation

Footage

Owned or Leased

Date

12/31/08LOAN PRODUCTION OFFICES:Addison LPO


10,113



Leased



04/30/09



N/A15601 Dallas Pkwy.
    Addison, TX 75001Arlington LPO


1,074



Leased



06/30/09



N/A2340 W. Interstate 20 Suites 210 and 212
    Arlington, TX 76017Austin LPO


1,555



Leased



05/31/09



N/A3839 Bee Cave Rd. Suite 204
    Austin, TX 78746Cedar Creek LPO


180



Leased



08/01/09



N/A331 N. Gun Barrel Lane
    Gun Barrel City, TX 75225Clear Lake/Nassau Bay LPO


975



Leased



06/30/09



N/A1120 NASA Pkwy. Suite 308
    Houston, TX 77058 42




---



##### Table of Contents



Lease

Net BookSquare



Expiration

Value atLocation

Footage

Owned or Leased

Date

12/31/08Coppell LPO


2,540



Leased



08/31/12



N/A275 S. Denton Tap Rd. Suite 100
    Coppell, TX 75019Dallas LPO


7,670



Leased



01/31/10



N/A13101 Preston Rd. Suite 100
    Dallas, TX 75240Ennis LPO


100



Leased



07/31/09



N/A1905 W. Ennis Ave. Suite 240B
    Ennis, TX 75119Houston LPO


400



Leased



12/31/09



N/A7500 San Felipe Suite 600
    Houston, TX 77063Park Cities LPO


4,654



Leased



04/30/11



N/A5944 Luther Lane Suite 1000
    Dallas, TX 75225Plano LPO1309 W. 15th St. Suite 320
    Plano, TX 75075


N/A



Owned 
    (in admin.
    office)



N/A



N/ASan Antonio LPO


3,212



Leased



11/30/12



N/A6800 Park Ten Blvd.
    San Antonio, TX 78213Southlake LPO


2,400



Leased



03/31/13



N/A751 E. Southlake Blvd. Suite 120
    Southlake, TX 76092Waxahachie LPO


1,273



Leased



05/31/09



N/A102 Professional Place Suite 101
    Waxahachie, TX 75165Weatherford LPO


1,422



Leased



06/30/13



N/A300 S. Main St. Suite 204
    Weatherford, TX 76086     *
    
    Represents in-store location.**
    
    Represents in-store location closing in 2009. 43




---



##### Table of Contents



Item 3.
    Legal
    Proceedings    Item 4.
    Submission
    of Matters to a Vote of Security Holders   44




---



##### Table of Contents



PART II  Item 5.
    Market
    for Registrants Common Equity, Related Shareholder Matters
    and Issuer Purchases of Equity Securities      Market Price RangeDividendsHigh


Low


Declared2007Quarter ended March 31, 2007

$
17.44


$
16.05


$
0.05Quarter ended June 30, 2007


18.91



17.06



0.05Quarter ended September 30, 2007


18.80



14.80



0.05Quarter ended December 31, 2007


18.20



15.56



0.052008Quarter ended March 31, 2008

$
16.96


$
14.54


$
0.06Quarter ended June 30, 2008


17.00



14.51



0.07Quarter ended September 30, 2008


17.81



14.48



0.08Quarter ended December 31, 2008


17.81



14.62



0.08       Equity
    Compensation Plans
    Number ofSecurities





Number ofto be Issued





SecuritiesUpon


Weighted


RemainingExercise of


Average


Available ForOutstanding


Exercise


IssuanceOptions


Price


Under Plan2007 Equity Incentive Plan


235,661


$
17.91



958,822
(1)     (1)
    
    Includes 33,990 shares under the plan that may be awarded
    as restricted stock. 45




---



##### Table of Contents



Shareholder
    Return Performance Graph Presentation
    COMPARISON OF CUMULATIVE TOTAL RETURN
 AMONG VIEWPOINT FINANCIAL GROUP,
 NASDAQ MARKET INDEX AND HEMSCOTT GROUP INDEX
  
  10/03/06


12/31/06


12/31/07


12/31/08VIEWPOINT FINANCIAL GROUP

$
100.00


$
169.40


$
167.26


$
165.33HEMSCOTT GROUP INDEX


100.00



106.88



62.63



44.18NASDAQ MARKET INDEX


100.00



107.19



117.85



69.90  46




---



##### Table of Contents



Item 6.
    Selected
    Financial Data  December 31,2008


2007


2006


2005


2004(Dollars in Thousands)Selected Financial Condition Data:Total assets

$
2,213,415


$
1,658,204


$
1,529,760


$
1,428,062


$
1,400,021Loans held for sale


159,884



13,172



3,212



2,306



3,238Loans receivable, net


1,239,708



908,650



965,452



1,073,167



1,086,448Securities available for sale, at fair value:U.S. government and federal agency securities


26,840



35,152



29,475



21,892



24,917Agency mortgage-backed and collateralized mortgage obligations


448,236



488,107



295,048



79,968



1,305Collateralized debt obligations


7,940



19,616











Securities held to maturity, at amortized cost:U.S. Government and Agency securities


9,992



20,091



11,271



18,007



23,040Corporate bonds














3,009



5,094Municipal bonds


9,384















Agency mortgage-backed and collateralized mortgage obligations


152,967











20,946



35,295Federal Home Loan Bank stock


18,069



6,241



3,724



3,958



4,481Bank-owned life insurance


27,578



26,497











Deposits


1,548,090



1,297,593



1,234,881



1,257,727



1,228,999Borrowings


435,841



128,451



55,762



47,680



57,545Shareholders equity


194,057



203,794



214,778



101,181



99,431Selected Operations Data:Total interest income

$
97,408


$
84,054


$
72,726


$
64,421


$
59,428Total interest expense


46,169



41,121



31,386



23,342



18,285Net interest income


51,239



42,933



41,340



41,079



41,143Provision for loan losses


6,171



3,268



2,565



6,120



6,199Net interest income after provision for loan losses


45,068



39,665



38,775



34,959



34,944Service charges and fees


19,779



22,389



20,589



20,359



21,693Net gain on sales of loans


9,390



1,298



199



351



631Loan servicing fees


252



305



262



383



191Brokerage fees


434



602



557



548



583Gain on sale of membership interests














855



Bank-owned life insurance income


1,081



460











Gain on redemption of Visa, Inc. shares


771















Non-cash loss on write-down of collateralized debt obligations
    to fair value


(13,809
)














Title fee income










384



524



466Other noninterest income


801



1,049



1,443



1,465



1,158Total noninterest income


18,699



26,103



23,434



24,485



24,722Total noninterest expense


69,118



57,957



56,080



56,720



50,650Income (loss) before income tax expense ( benefit)


(5,351
)


7,811



6,129



2,724



9,016Income tax expense (benefit)(1)


(2,195
)


2,744



(3,557
)






Net income (loss)(1)

$
(3,156
)

$
5,067


$
9,686


$
2,724


$
9,016  47




---



##### Table of Contents



Year Ended December 31,2008

2007

2006

2005

2004Selected Financial Ratios and Other Data (Unaudited):Performance Ratios:Return on assets (ratio of net income (loss) to average total
    assets)


(0.17)%


0.32%


0.65%


0.19%


0.67%Return on assets tax effected


n/a


n/a


n/a


0.12%


0.42%Return on equity (ratio of net income (loss) to average equity)


(1.58)%


2.39%


6.76%


2.72%


9.49%Return on equity tax effected


n/a


n/a


n/a


1.71%


5.98%Interest rate spread information:Average during period


2.33%


2.08%


2.41%


2.83%


3.06%End of period


2.11%


2.12%


2.19%


2.78%


2.95%Net interest margin


2.86%


2.86%


3.00%


3.13%


3.29%Non-interest income to operating revenue


16.10%


23.70%


24.37%


27.54%


29.38%Operating expense to average total assets


3.62%


3.62%


3.79%


4.00%


3.76%Average interest-earning assets to average interest-bearing
    liabilities


120.38%


128.59%


125.57%


117.04%


116.24%Efficiency ratio


98.83%


83.95%


86.58%


86.51%


76.90%Dividend payout ratio


n/m*


41.74%


n/a


n/a


n/aAsset Quality Ratios:Non-performing assets to total assets at end of period


0.29%


0.26%


0.26%


0.36%


0.61%Non-performing loans to gross loans


0.38%


0.38%


0.35%


0.43%


0.69%Allowance for loan losses to non-performing loans


191.11%


175.49%


193.03%


167.51%


112.55%Allowance for loan losses to gross loans


0.73%


0.67%


0.67%


0.72%


0.78%Capital Ratios:Equity to total assets at end of period


8.77%


12.29%


14.04%


7.09%


7.10%Average equity to average assets


10.46%


13.25%


9.69%


7.07%


7.06%Other Data:Number of locations (including in-store banking centers and loan
    production offices)


45


37


34


33


33Number of in-store banking centers


12


12


16


18


18       (1)
    
    Until its conversion to a federally chartered savings bank on
    January 1, 2006, ViewPoint Bank was a credit union,
    generally exempt from federal and state income taxes. As a
    result of the change in tax status on January 1, 2006,
    ViewPoint Bank recorded a deferred tax asset in the amount of
    $6.6 million, as well as a related tax benefit in the
    income statement of $6.1 million. The following table
    illustrates a reconciliation to pro forma net income for all
    periods presented, had ViewPoint Bank been subject to federal
    and state income taxes:  2008


2007


2006


2005


2004(In Thousands)Historical net income (loss)

$
(3,156)


$
5,067


$
9,686


$
2,724


$
9,016Less: pro forma tax expense


n/a



n/a



n/a



(1,008)



(3,336)Less: tax benefit


n/a



n/a



6,108



n/a



n/aPro forma net income (loss)

$
(3,156)


$
5,067


$
3,578


$
1,716


$
5,680  48




---



##### Table of Contents



Item 7.
    Managements
    Discussion and Analysis of Financial Condition and Results of
    Operations  General
      Critical
    Accounting Policies
  other-than-temporary
  Allowance for Loan Losses.
 49




---



##### Table of Contents



Other-than-Temporary
    Impairments. other-than-temporary other-than-temporary
  EITF 99-20
    other-than-temporarily other-than-temporarily
  Business
    Strategy
    
    Controlling operating expenses while continuing to provide
    quality personal service to our customers;
    Growing and diversifying our loan portfolio by emphasizing the
    origination of one- to four-family residential mortgage loans,
    commercial real estate loans, warehouse lines, and secured
    business loans;
    Selectively emphasizing products and services to provide
    diversification of revenue sources and to capture our
    customers full relationship. We intend to continue to
    expand our business by cross-selling our loan and deposit
    products and services to our customers;
    Expanding our banking network with de novo, full-service
    community bank offices, and potentially by selectively acquiring
    production offices and other financial institutions;
    Enhancing our focus on core retail and business deposits,
    including savings and checking accounts; 50




---



##### Table of Contents




    Borrowing from the Federal Home Loan Bank of Dallas for interest
    rate risk management and liquidity purposes; and
    Maintaining a high level of asset quality.    Comparison
    of Financial Condition at December 31, 2008, and
    December 31, 2007
  General.
  Loans.
          Allowance for Loan Losses.
   51




---



##### Table of Contents



Cash and Cash Equivalents.
 52




---



##### Table of Contents



Securities.
  Deposits.
  ® ® ® ® ®
  Borrowings.
  Shareholders Equity. other-than-temporary EITF 99-20
 53




---



##### Table of Contents



No. 157-3,
   54




---



##### Table of Contents



Average
    Balances, Net Interest Income, Yields Earned and Rates
    Paid
    Year Ended December 31,2008


2007


2008Average


Interest





Average


Interest





Average


InterestOutstanding


Earned/


Yield/


Outstanding


Earned/


Yield/


Outstanding


Earned/


Yield/Balance


Paid


Rate


Balance


Paid


Rate


Balance


Paid


Rate(Dollars in Thousands)Interest-earning assetsLoans receivable(1)

$
1,102,910


$
66,386



6.02
%

$
921,387


$
54,674



5.93
%

$
1,009,131


$
56,154



5.56
%Mortgage-backed securities


230,701



10,881



4.72



126,158



6,296



4.99



58,074



2,851



4.91Collateralized mortgage obligations


328,235



15,505



4.72



316,468



16,965



5.36



147,025



7,060



4.80Investment securities


59,392



3,170



5.34



47,815



2,046



4.28



39,250



1,420



3.62FHLB stock


12,003



271



2.26



4,581



208



4.54



3,750



185



4.93Interest-earning deposit accounts


59,294



1,195



2.02



83,182



3,865



4.65



121,587



5,056



4.16Total interest-earning assets


1,792,535



97,408



5.43



1,499,591



84,054



5.61



1,378,817



72,726



5.27Noninterest-earning assets


114,490











99,537











101,344Total assets

$
1,907,025










$
1,599,128










$
1,480,161Interest-bearing liabilitiesInterest-bearing demand

$
81,672



868



1.06


$
68,320



428



0.63


$
66,620



226



0.34Savings and money market


603,202



14,442



2.39



619,716



17,711



2.86



719,921



18,432



2.56Time


526,848



20,219



3.84



394,658



18,934



4.80



249,537



10,260



4.11Borrowings


277,366



10,640



3.84



83,501



4,048



4.85



51,187



2,385



4.66Other interest-bearing liabilities


























10,775



83



0.77Total interest-bearing liabilities


1,489,088



46,169



3.10



1,166,195



41,121



3.53



1,098,040



31,386



2.86Noninterest-bearing liabilities


218,400











221,064











238,747Total liabilities


1,707,488











1,387,259











1,336,787Total capital


199,537











211,869











143,374Total liabilities and capital

$
1,907,025










$
1,599,128










$
1,480,161Net interest income





$
51,239










$
42,933










$
41,340Net interest rate spread










2.33
%










2.08
%










2.41
%Net earnings assets

$
303,447










$
333,396










$
280,777Net interest margin










2.86
%










2.86
%










3.00
%Average interest-earning assets to average interest-bearing
    liabilities


120.38
%










128.59
%










125.57
%     1

    
    Calculated net of deferred fees, loan discounts, loans in
    process and allowance for loan losses. 55




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##### Table of Contents



Rate/Volume
    Analysis
    Year Ended December 31,2008 vs. 2007


2007 vs. 2006Increase





Increase(Decrease)


Total


(Decrease)


TotalDue to


Increase


Due to


IncreaseVolume


Rate


(Decrease)


Volume


Rate


(Decrease)(In thousands)Interest-earning assetsLoans receivable

$
10,916


$
796


$
11,712


$
(5,066
)

$
3,586


$
(1,480
)Mortgage-backed securities


4,949



(364
)


4,585



3,397



48



3,445Collateralized mortgage obligations


613



(2,073
)


(1,460
)


8,997



908



9,905Investment securities


556



568



1,124



341



285



626FHLB stock


208



(145
)


63



39



(16
)


23Interest earning deposit accounts


(898
)


(1,772
)


(2,670
)


(1,734
)


543



(1,191
)Total interest-earning assets

$
16,344


$
(2,990
)


13,354


$
5,974


$
5,354



11,328Interest-bearing liabilitiesInterest-bearing demand

$
96


$
344



440


$
6


$
196



202Savings and money market


(461
)


(2,808
)


(3,269
)


(2,728
)


2,007



(721
)Time


5,548



(4,263
)


1,285



6,740



1,934



8,674Borrowings


7,599



(1,007
)


6,592



1,563



100



1,663Other interest-bearing liabilities














(83
)






(83
)Total interest-bearing liabilities

$
12,782


$
(7,734
)


5,048


$
5,498


$
4,237



9,735Net interest income









$
8,306










$
1,593   Comparison
    of Results of Operation for the Years Ended December 31,
    2008, and 2007
  General. other-than-temporary
   56




---



##### Table of Contents



Interest Income.
    Interest Expense.
   57




---



##### Table of Contents



Net Interest Income.
  Provision for Loan Losses.
    Noninterest Income.
    Noninterest Expense.
 58




---



##### Table of Contents



Income Tax Expense.
  Comparison
    of Results of Operation for the Years Ended December 31,
    2007, and 2006
  General.
  Interest Income.
    Interest Expense.
   59




---



##### Table of Contents



Net Interest Income.
    Provision for Loan Losses.
        Noninterest Income.
    Noninterest Expense.
 60




---



##### Table of Contents



Income Tax Expense.
  Liquidity
             61




---



##### Table of Contents



Form 10-K
  Off-Balance
    Sheet Arrangements, Contractual Obligations and
    Commitments
    December 31, 2008FourthroughLess than


One through


Five


After FiveOne Year


Three Years


Years


Years


Total(Dollars in Thousands)Contractual obligations:Federal Home Loan Bank advances

$
98,337


$
97,834


$
106,841


$
107,829


$
410,841Repurchase agreement














25,000



25,000Operating leases (premises)


1,621



2,457



1,581



3,610



9,269Total advances and operating leases

$
99,958


$
100,291


$
108,422


$
136,439



445,110Off-balance sheet loan commitments:Lone Star CRA


















2,086Undisbursed portions of loans closed


















32,615Commitments to originate loans


















95,044Unused lines of credit


















102,527Total loan commitments


















232,272Total contractual obligations and loan commitments

















$
677,382   Capital
    Resources
      Impact of
    Inflation
   62




---



##### Table of Contents



Recent
    Accounting Pronouncements
  Fair Value Measurements 157-2, Effective Date of FASB Statement No. 157
  No. 06-4, Accounting for Deferred Compensation and Postretirement
    Benefit Aspects of Endorsement Split-Dollar Life Insurance
    Arrangements
  The
    Fair Value Option for Financial Assets and Financial
    Liabilities
  Share-Based
    Payment
  Business Combinations
  Disclosures about Derivative
    Instruments and Hedging Activities-an amendment of FASB
    Statement 133 Accounting for
 63




---



##### Table of Contents



Derivative and Hedging Activities
  No. 03-6-1, Determining Whether Instruments Granted in Share-Based
    Payment Transactions Are Participating Securities Earnings per Share
  No. 157-3, Determining the Fair Value of a Financial Asset When the
    Market for that Asset Is Not Active. Fair Value Measurements
  No. 99-20-1, Amendments to the Impairment Guidance of EITF Issue
    No. 99-20 No. 99-20, Recognition of Interest Income and Impairment on Purchased
    Beneficial Interests and Beneficial Interests that Continue to
    be Held by a Transferor in Securitized Financial Assets, Accounting for Certain
    Investments in Debt and Equity Securities EITF 99-20s
  Item 7A.
    Quantitative
    and Qualitative Disclosures about Market Risk  Asset/Liability
    Management
  Our Risk When Interest Rates Change.
  How We Measure Our Risk of Interest Rate
    Changes.
 64




---



##### Table of Contents



65




---



##### Table of Contents



December 31, 2008Change inInterestRates in

Net Portfolio Value


NPVBasis Points

$ Amount


$ Change


% Change


Ratio %(Dollars in Thousands)300


116,243



(55,211
)


(32.20
)


5.61200


138,395



(33,059
)


(19.28
)


6.51100


158,694



(12,760
)


(7.44
)


7.280


171,454











7.70(100)


173,147



1,693



0.99



7.65(200)


171,964



510



0.30



7.48(300)


179,152



7,698



4.49



7.67   December 31, 2007Change inInterestRates in

Net Portfolio Value


NPVBasis Points

$ Amount


$ Change


% Change


Ratio %(Dollars in Thousands)300


110,428



(48,605
)


(30.56
)


7.10200


126,159



(32,874
)


(20.67
)


7.95100


142,872



(16,161
)


(10.16
)


8.820


159,033











9.62(100)


174,047



15,014



9.44



10.35(200)


186,643



27,610



17.36



10.93(300)


199,493



40,460



25.44



11.52        66




---



##### Table of Contents



67




---



##### 



Item 8.
    Financial
    Statements and Supplementary Data  VIEWPOINT
    FINANCIAL GROUP AND SUBSIDIARY
  FINANCIAL
    STATEMENTS
 December 31,
    2008, 2007, and 2006
  INDEX
   
 PageREPORT OF INDEPENDENT REGISTERED PUBLIC
    ACCOUNTING FIRM


69CONSOLIDATED FINANCIAL STATEMENTSConsolidated Balance Sheets


70Consolidated Statements of Income (Loss)


71Consolidated Statements of Comprehensive Income
    (Loss)


72Consolidated Statements of Changes in
    Shareholders Equity


73Consolidated Statements of Cash Flows


74Notes to Consolidated Financial Statements


75   68




---



##### Table of Contents



REPORT OF
    INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM                 
  
    69




---



##### Table of Contents



CONSOLIDATED
    BALANCE SHEETS
    December 31,
    (Dollar amounts in thousands, except share data)  December 31,


December 31,2008


2007ASSETSCash and due from financial institutions

$
20,886


$
25,427Short-term interest-bearing deposits in other financial
    institutions


11,627



48,051Total cash and cash equivalents


32,513



73,478Securities available for sale


483,016



542,875Securities held to maturity (fair value December 31,
    2008  $176,579, December 31, 2007 
    $20,202)


172,343



20,091Mortgage loans held for sale


159,884



13,172Loans, net of allowance of $9,068-December 31, 2008,
    $6,165-December 31, 2007


1,239,708



908,650Federal Home Loan Bank stock, at cost


18,069



6,241Bank-owned life insurance


27,578



26,497Mortgage servicing rights


1,372



1,648Foreclosed assets, net


1,644



840Premises and equipment, net


45,937



40,862Membership capital account at corporate credit union






1,000Goodwill


1,089



1,089Accrued interest receivable


8,519



6,778Other assets


21,743



14,983Total assets

$
2,213,415


$
1,658,204LIABILITIES AND SHAREHOLDERS EQUITYDepositsNon-interest-bearing demand

$
172,395


$
190,163Interest-bearing demand


98,884



71,934Savings and money market


635,243



578,728Time


641,568



456,768Total deposits


1,548,090



1,297,593Federal Home Loan Bank advances


410,841



128,451Repurchase agreement


25,000



Accrued interest payable


1,769



982Other liabilities


33,658



27,384Total liabilities


2,019,358



1,454,410Commitments and contingent liabilities






Shareholders equityCommon stock, $.01 par value; 75,000,000 shares
    authorized; 26,208,958 shares issued 
    December 31, 2008; 26,208,958 shares
    issued  December 31, 2007


262



262Additional paid-in capital


115,873



113,612Retained earnings


108,491



114,801Accumulated other comprehensive income (loss)


(1,613
)


861Unearned Employee Stock Ownership Plan (ESOP) shares;
    719,507 shares  December 31, 2008;
    812,346 shares  December 31, 2007


(7,248
)


(8,176
)Treasury stock, at cost; 1,279,801 shares 
    December 31, 2008; 1,000,455 shares 
    December 31, 2007


(21,708
)


(17,566
)Total shareholders equity


194,057



203,794Total liabilities and shareholders equity

$
2,213,415


$
1,658,204    70




---



##### Table of Contents



CONSOLIDATED
    STATEMENTS OF INCOME (LOSS)Years ended December 31,
    (Dollar amounts in thousands, except per share data) 2008


2007


2006Interest and dividend incomeLoans, including fees

$
66,386


$
54,674


$
56,154Taxable securities


29,431



25,307



11,331Nontaxable securities


125







Interest-bearing deposits in other financial institutions


1,195



3,865



5,056Federal Home Loan Bank stock


271



208



18597,408



84,054



72,726Interest expenseDeposits


35,529



37,073



28,918Federal Home Loan Bank advances


10,340



4,048



2,385Repurchase agreement


300







Other










8346,169



41,121



31,386Net interest income


51,239



42,933



41,340Provision for loan losses


6,171



3,268



2,565Net interest income after provision for loan losses


45,068



39,665



38,775Noninterest incomeService charges and fees


19,779



22,389



20,589Brokerage fees


434



602



557Net gain on sales of loans


9,390



1,298



199Loan servicing fees


252



305



262Bank-owned life insurance income


1,081



460



Gain on redemption of Visa, Inc. shares


771







Loss on write-down of collateralized debt obligations to fair
    value


(13,809
)






Other


801



1,049



1,82718,699



26,103



23,434Noninterest expenseSalaries and employee benefits


43,319



31,557



31,641Advertising


2,296



2,238



2,636Occupancy and equipment


5,772



5,198



5,426Outside professional services


3,229



4,159



1,605Data processing


4,001



4,055



4,223Office operations


6,111



6,287



6,359Charter conversion costs










101Deposit processing charges


990



1,145



915Lending and collection


1,276



1,120



824Other


2,124



2,198



2,35069,118



57,957



56,080Income (loss) before income tax expense (benefit)


(5,351
)


7,811



6,129Income tax expense (benefit)


(2,195
)


2,744



(3,557
)Net income (loss)

$
(3,156
)

$
5,067


$
9,686Unaudited pro forma income information:Less tax benefit  change in status










6,108Pro forma net income (loss)

$
(3,156
)

$
5,067


$
3,578Earnings (loss) per share:Basic

$
(0.13
)

$
0.20


$
0.081Diluted

$
(0.13
)

$
0.20


$
0.081       1

    
    Stock offering ended on September 29, 2006.  Earnings per share
    is for the period September 29, 2006, to December 31, 2006. 71




---



##### Table of Contents



CONSOLIDATED
    STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
    Years ended December 31,
    (Dollar amounts in thousands)  2008


2007


2006Net income

$
(3,156
)

$
5,067


$
9,686Other comprehensive income (loss):Change in unrealized gains (losses) on securities available for
    sale


(17,545
)


1,423



1,763Reclassification of amounts realized through impairment charges


13,809







Tax effect


1,262



(493
)


(600
)Other comprehensive income (loss), net of tax


(2,474
)


930



1,163Comprehensive income (loss)

$
(5,630
)

$
5,997


$
10,849     72




---



##### Table of Contents



CONSOLIDATED
    STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY
    Years ended December 31,
    (Dollar amounts in thousands, except per share and share data) AccumulatedAdditional


Unearned





OtherCommon


Paid-In


ESOP


Retained


Comprehensive


Treasury


TotalStock


Capital


Shares


Earnings


Income (Loss)


Stock


EquityBalance at January 1, 2006

$



$



$



$
102,413


$
(1,232
)

$



$
101,181Common stock issued in initial public offering, net of issuance
    costs, 25,788,750 shares


258



111,732



(9,284
)














102,706Capitalization of mutual holding company














(250
)










(250
)ESOP shares earned, 23,210 shares






112



180















292Comprehensive income:Net income














9,686











9,686Change in net unrealized gains (losses) on securities available
    for sale, net of tax


















1,163







1,163Total comprehensive income


























10,849Balance at December 31, 2006


258



111,844



(9,104
)


111,849



(69
)






214,778ESOP shares earned, 92,839 shares






682



928















1,610Treasury stock purchased at cost, 1,000,455 shares






















(17,566
)


(17,566
)Share- based compensation expense






1,090



















1,090Restricted stock granted, 420,208 shares


4



(4
)


















Dividends declared ($0.20 per share)














(2,115
)










(2,115
)Comprehensive income:Net income














5,067











5,067Change in net unrealized gains (losses) on securities available
    for sale, net of tax


















930







930Total comprehensive income


























5,997Balance at December 31, 2007

$
262


$
113,612


$
(8,176
)

$
114,801


$
861


$
(17,566
)

$
203,794ESOP shares earned, 92,839 shares






791



928















1,719Treasury stock purchased at cost, 289,346 shares






















(4,312
)


(4,312
)Share- based compensation expense






1,640



















1,640Restricted stock granted, 10,000 shares






(170
)














170



Dividends declared ($0.29 per share)














(3,154
)










(3,154
)Comprehensive income:Net income (loss)














(3,156
)










(3,156
)Change in net unrealized gains (losses) on securities available
    for sale, net of tax


















(2,474
)






(2,474
)Total comprehensive income


























(5,630
)Balance at December 31, 2008

$
262


$
115,873


$
(7,248
)

$
108,491


$
(1,613
)

$
(21,708
)

$
194,057    73




---



##### Table of Contents



CONSOLIDATED
    STATEMENTS OF CASH FLOWSYears ended December 31,
    (Dollar amounts in thousands) 2008


2007


2006Cash flows from operating activitiesNet income (loss)

$
(3,156
)

$
5,067


$
9,686Adjustments to reconcile net income to net cash fromoperating activitiesProvision for loan losses


6,171



3,268



2,565Depreciation and amortization


4,365



4,469



4,683Premium amortization and accretion of securities, net


(767
)


(873
)


(264
)Write-down of collateralized debt obligations to fair value


13,809







ESOP compensation expense


1,719



1,610



292Share-based compensation expense


1,640



1,090



Loss (gain) on new markets equity fund


(165
)


178



Amortization of mortgage servicing rights


292



291



404Net (gain) loss on loans held for sale


(9,390
)


(1,298
)


(199
)Loans originated for sale


(591,218
)


(87,378
)


(27,127
)Proceeds from sale of loans held for sale


453,896



78,716



26,420FHLB stock dividends


(271
)


(208
)


(185
)Earnings on bank-owned life insurance


(1,081
)


(460
)


Loss (gain) on disposition of property and equipment


(16
)


165



265Net loss (gain) on sales of other real estate owned


106



156



67Net change in deferred loan fees


1,809



2,973



4,485Net change in accrued interest receivable


(1,791
)


(911
)


(857
)Net change in other assets


(4,013
)


(1,625
)


(6,178
)Net change in other liabilities


7,701



5,627



625Net cash from operating activities


(120,360
)


10,857



14,682Cash flows from investing activitiesNet decrease in certificates of deposit with other financial
    institutions










11,000Contribution to new markets equity fund


(1,554
)


(1,600
)


(960
)Available-for-sale securities:Maturities, prepayments and calls


109,051



103,299



346,476Purchases


(66,098
)


(319,337
)


(567,597
)Held-to-maturity securities:Maturities, prepayments and calls


24,506



5,565



30,540Purchases


(176,630
)


(14,403
)


Proceeds from membership capital account


1,000







Net change in loans


(341,727
)


49,700



99,791Purchase of assets of Bankers Financial Mortgage Group,
    Ltd.






(1,323
)


Purchase of bank-owned life insurance






(26,037
)


Net change in NCUSIF deposit










10,424(Purchase) redemption of FHLB stock


(11,605
)


(2,309
)


419Purchases of premises and equipment


(9,460
)


(3,212
)


(2,633
)Proceeds from sale of fixed assets


36



154



110Proceeds on sale of other real estate owned


1,455



549



398Net cash from investing activities


(471,026
)


(208,954
)


(72,032
)Cash flows from financing activitiesNet change in deposits


250,497



62,712



(22,846
)Proceeds from Federal Home Loan Bank advances


313,000



84,507



17,003Repayments on Federal Home Loan Bank advances


(30,610
)


(11,818
)


(8,921
)Proceeds from repurchase agreement


25,000







Proceeds from sale of common stock, net of issuance costs










102,706Capitalization of MHC










(250
)Treasury stock purchased


(4,312
)


(17,566
)


Payment of dividends


(3,154
)


(2,115
)


Net cash from financing activities


550,421



115,720



87,692Net change in cash and cash equivalents


(40,965
)


(82,377
)


30,342Beginning cash and cash equivalents


73,478



155,855



125,513Ending cash and cash equivalents

$
32,513


$
73,478


$
155,855Supplemental cash flow information:Interest paid

$
45,382


$
40,610


$
31,021Income taxes paid

$
1,917


$
3,567


$
1,332Supplemental noncash disclosures:Transfers from loans to other real estate owned

$
2,690


$
983


$
916Payable for new markets equity fund

$



$
640


$
2,240    74




---



##### Table of Contents



VIEWPOINT
    FINANCIAL GROUP AND SUBSIDIARYNOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (Dollar amounts in thousands)
  NOTE 1 
    SUMMARY
    OF SIGNIFICANT ACCOUNTING POLICIES  Organization
    Nature of Operations and Principles of
    Consolidation
      ®
  Use of Estimates other-than-temporary
 75




---



##### Table of Contents



VIEWPOINT
    FINANCIAL GROUP AND SUBSIDIARY
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (Dollar amounts in thousands)
   NOTE 1 
    SUMMARY
    OF SIGNIFICANT ACCOUNTING
    POLICIES(Continued)    Cash Flows
  Interest-Bearing Deposits in Other Financial
    Institutions
  Securities
    other-than-temporary other-than-temporary
  EITF 99-20
  Loans Held for Sale
 76




---



##### Table of Contents



VIEWPOINT
    FINANCIAL GROUP AND SUBSIDIARY
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (Dollar amounts in thousands)
   NOTE 1 
    SUMMARY
    OF SIGNIFICANT ACCOUNTING
    POLICIES(Continued)  Loans
      Concentration of Credit Risk
  Allowance for Loan Losses
  non-classified
    Servicing Rights
 77




---



##### Table of Contents



VIEWPOINT
    FINANCIAL GROUP AND SUBSIDIARY
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (Dollar amounts in thousands)
   NOTE 1 
    SUMMARY
    OF SIGNIFICANT ACCOUNTING
    POLICIES(Continued)          Transfers of Financial Assets
  Foreclosed Assets
  Premises and Equipment
  Federal Home Loan Bank (FHLB) stock:
  Bank-Owned Life Insurance EITF 06-5,
  No. 06-5, Bulletin No. 85-4
 78




---



##### Table of Contents



VIEWPOINT
    FINANCIAL GROUP AND SUBSIDIARY
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (Dollar amounts in thousands)
   NOTE 1 
    SUMMARY
    OF SIGNIFICANT ACCOUNTING
    POLICIES(Continued)  EITF 06-5
  Goodwill
  Long-term Assets
  Membership Capital Account at Corporate Credit
    Union
  Brokerage Fee Income
  Mortgage Servicing Revenue
  Charter Conversion Costs
  Advertising Expense :
  Loan Commitments and Related Financial
    Instruments
  Income Taxes
   79




---



##### Table of Contents



VIEWPOINT
    FINANCIAL GROUP AND SUBSIDIARY
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (Dollar amounts in thousands)
   NOTE 1 
    SUMMARY
    OF SIGNIFICANT ACCOUNTING
    POLICIES(Continued)  Accounting for
    Uncertainty in Income Taxes
    and/or
  Share-Based Compensation
  Retirement Plans:
  Comprehensive Income (Loss)
  Loss Contingencies
  Restrictions on Cash
  Earnings per common share
  Employee stock ownership plan (ESOP) 93-6.
 80




---



##### Table of Contents



VIEWPOINT
    FINANCIAL GROUP AND SUBSIDIARY
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (Dollar amounts in thousands)
   NOTE 1 
    SUMMARY
    OF SIGNIFICANT ACCOUNTING
    POLICIES(Continued)    Dividend Restriction
  Fair Value of Financial Instruments
  Operating Segments:
  Reclassifications
  Adoption of New Accounting Standards
  Fair Value Measurements 157-2, Effective Date of FASB Statement No. 157
  No. 06-4, Accounting for Deferred Compensation and Postretirement
    Benefit Aspects of Endorsement Split-Dollar Life Insurance
    Arrangements
  The
    Fair Value Option for Financial Assets and Financial
    Liabilities
  Share-Based
    Payment
 81




---



##### Table of Contents



VIEWPOINT
    FINANCIAL GROUP AND SUBSIDIARY
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (Dollar amounts in thousands)
   NOTE 1 
    SUMMARY
    OF SIGNIFICANT ACCOUNTING
    POLICIES(Continued)    No. 157-3, Determining the Fair Value of a Financial Asset When the
    Market for that Asset Is Not Active. Fair Value Measurements
  No. 99-20-1, Amendments to the Impairment Guidance of EITF Issue
    No. 99-20 No. 99-20, Recognition of Interest Income and Impairment on Purchased
    Beneficial Interests and Beneficial Interests that Continue to
    be Held by a Transferor in Securitized Financial
    Assets, other-than-temporary other-than-temporary Accounting for Certain
    Investments in Debt and Equity Securities available-for-sale held-to-maturity Other-than-temporary
  EITF 99-20s other-than-temporary
  Effect of Newly Issued But Not Yet Effective Accounting
    Standards
  Business Combinations
  Disclosures about Derivative
    Instruments and Hedging Activities-an amendment of FASB
    Statement 133 Accounting for Derivative and Hedging
    Activities
  No. 03-6-1, Determining Whether Instruments Granted in Share-Based
    Payment Transactions Are Participating Securities
 82




---



##### Table of Contents



VIEWPOINT
    FINANCIAL GROUP AND SUBSIDIARY
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (Dollar amounts in thousands)
   NOTE 1 
    SUMMARY
    OF SIGNIFICANT ACCOUNTING
    POLICIES(Continued)  Earnings per Share
  NOTE 2  STOCK
    ISSUANCE
               83




---



##### Table of Contents



VIEWPOINT
    FINANCIAL GROUP AND SUBSIDIARY
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (Dollar amounts in thousands)
   NOTE 2  STOCK
    ISSUANCE (Continued)
    NOTE 3 
    CONCENTRATION
    OF FUNDS    December 31,2008


2007Federal Reserve Bank of Dallas

$
2,863


$
3,224Federal Home Loan Bank of Dallas


2,087



9,238Texas Independent Bank


8,799



4,979Texas Capital Bank


741



33,832Southwest Corporate Federal Credit Union






1,002$
14,490


$
52,275       NOTE 4 
    SECURITIES  available-for-sale
  Gross


GrossUnrealized


UnrealizedDecember 31, 2008

Fair Value


Gains


LossesU.S. government and federal agency

$
18,740


$
238


$
Agency mortgage-backed and collateralized mortgage obligations


448,236



5,691



(8,184
)SBA pools


8,100







(213
)Collateralized debt obligations


7,940







Total debt securities

$
483,016


$
5,929


$
(8,397
)   84




---



##### Table of Contents



VIEWPOINT
    FINANCIAL GROUP AND SUBSIDIARY
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (Dollar amounts in thousands)
   NOTE 4 
    SECURITIES(Continued)  Gross


GrossUnrealized


UnrealizedFair Value


Gains


LossesDecember 31, 2007U.S. government and federal agency

$
35,152


$
189


$
(43
)Agency mortgage-backed and collateralized mortgage obligations


488,107



4,151



(1,098
)Collateralized debt obligations


19,616







(1,880
)Total debt securities

$
542,875


$
4,340


$
(3,021
)     Gross


GrossCarrying


Unrecognized


Unrecognized


FairDecember 31, 2008

Amount


Gains


Losses


ValueU.S. government and federal agency

$
9,992


$
151


$



$
10,143Agency mortgage-backed and collateralized mortgage obligations


152,967



3,908



(81
)


156,794Municipal bonds


9,384



258







9,642Total

$
172,343


$
4,317


$
(81
)

$
176,579   Gross


GrossCarrying


Unrecognized


UnrecognizedDecember 31, 2007

Amount


Gains


Losses


FairValueAgency mortgage-backed and collateralized mortgage obligations

$
20,091


$
117


$
(5
)

$
20,202Total

$
20,091


$
117


$
(5
)

$
20,202     85




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##### Table of Contents



VIEWPOINT
    FINANCIAL GROUP AND SUBSIDIARY
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (Dollar amounts in thousands)
   NOTE 4 
    SECURITIES(Continued)  Held-to-maturity


Available for saleDecember 31, 2008

Carrying Amount


Fair Value


Fair ValueDue in one year or less

$



$



$
13,235Due from one to five years


11,269



11,450



5,505Due from five to ten years


6,745



6,937



8,100Due after ten years


1,362



1,398



7,940Agency mortgage-backed and collateralized mortgage obligations


152,967



156,794



448,236Total

$
172,343


$
176,579


$
483,016           Less than 12 Months


12 Months or More


TotalDescription of

Fair


Unrealized


Fair


Unrealized


Fair


UnrealizedSecurities

Value


Loss


Value


Loss


Value


LossDecember 31, 2008U.S. Government and federal agency

$



$



$



$



$



$
SBA pools


8,100



(213
)










8,100



(213
)Agency mortgage-backed and collateralized mortgage obligations


112,998



(932
)


101,447



(7,333
)


214,445



(8,265
)Total temporarily impaired

$
121,098


$
(1,145
)

$
101,447


$
(7,333
)

$
222,545


$
(8,478
)   Less than 12 Months


12 Months or More


TotalDescription of

Fair


Unrealized


Fair


Unrealized


Fair


UnrealizedSecurities

Value


Loss


Value


Loss


Value


LossDecember 31, 2007U.S. Government and federal agency

$



$



$
11,990


$
(43
)

$
11,990


$
(43
)Agency mortgage-backed and collateralized mortgage obligations


127,165



(1,017
)


14,128



(86
)


141,293



(1,103
)Collateralized debt obligations


19,616



(1,880
)










19,616



(1,880
)Total temporarily impaired

$
146,781


$
(2,897
)

$
26,118


$
(129
)

$
172,899


$
(3,026
)  86




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##### Table of Contents



VIEWPOINT
    FINANCIAL GROUP AND SUBSIDIARY
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (Dollar amounts in thousands)
   NOTE 4 
    SECURITIES(Continued)  other-than-temporary other-than-temporarily
    other-than-temporary EITF 99-20 EITF 99-20,
 87




---



##### Table of Contents



VIEWPOINT
    FINANCIAL GROUP AND SUBSIDIARY
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (Dollar amounts in thousands)
  NOTE 5 
    LOANS    December 31,2008


2007Mortgage loans:One-to four-family

$
498,961


$
332,780Commercial


436,483



251,915One-to four-family construction


503



Commercial construction






225Home equity


101,021



85,0641,036,968



669,984Automobile indirect loans


38,837



104,156Automobile direct loans


73,033



98,817Government-guaranteed student loans


7,399



5,422Commercial  non-mortgage loans


18,574



12,278Warehouse lines of credit


53,271



Consumer lines of credit and unsecured loans


15,192



16,351Other consumer loans, secured


6,708



7,204Total gross loans


1,249,982



914,212Deferred net loan origination costs (fees)


(1,206
)


603Allowance for loan losses


(9,068
)


(6,165
)$
1,239,708


$
908,650     Years EndedDecember 31,2008


2007


2006Beginning balance

$
6,165


$
6,507


$
7,697Provision for loan losses


6,171



3,268



2,565Loans charged-off


(4,026
)


(5,080
)


(4,966
)Recoveries


758



1,470



1,211Ending balance

$
9,068


$
6,165


$
6,507     December 31, 2008


December 31, 2007Year-end loans with no allocated allowance for loan losses

$
3,068


$
2,729Year-end loans with allocated allowance for loan losses


1,597



3,042Total

$
4,665


$
5,771Amount of the allowance for loan losses allocated to impaired
    loans at year-end

$
328


$
328   88




---



##### Table of Contents



VIEWPOINT
    FINANCIAL GROUP AND SUBSIDIARY
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (Dollar amounts in thousands)
   NOTE 5 
    LOANS(Continued)  Years EndedDecember 31,2008


2007


2006Average of individually impaired loans during year

$
4,225


$
4,027


$
6,114Interest income recognized during impairment


258



370



470Cash-basis interest income recognized


238



351



469     December 31, 2008

December 31, 2007Loans past due over 90 days still on accrual

$



$
Nonaccrual loans


2,217



2,102       NOTE 6 
    FAIR
    VALUE              89




---



##### Table of Contents



VIEWPOINT
    FINANCIAL GROUP AND SUBSIDIARY
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (Dollar amounts in thousands)
   NOTE 6 
    FAIR
    VALUE (Continued)
  other-than-temporary EITF 99-20
    Assets and Liabilities Measured on a Recurring Basis
    Fair Value Measurements at December 31, 2008, UsingQuoted Prices inActive Markets for


Significant Other


SignificantDecember 31,


Identical Assets


Observable Inputs


Unobservable Inputs2008


(Level 1)


(Level 2)


(Level 3)Assets:Securities available for sale

$
483,016


$



$
475,076


$
7,940     Securities availablefor saleBeginning balance, January 1, 2008

$
Transfers into Level 3 at September 30, 2008


14,718Total gains or losses (realized /unrealized)Included in earningsInterest income on securities


Non-cash loss on write-down of collateralized debt obligations
    to fair value


(13,809
)Other changes in fair value


Gains (losses) on sales of securities


Included in other comprehensive income


7,031Ending balance, December 31, 2008

$
7,940   Assets and Liabilities Measured on a Non-Recurring Basis
 90




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##### Table of Contents



VIEWPOINT
    FINANCIAL GROUP AND SUBSIDIARY
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (Dollar amounts in thousands)
   NOTE 6 
    FAIR
    VALUE (Continued)
    Fair Value Measurements at December 31, 2008, UsingQuoted Prices inActive Markets for


Significant Other


SignificantDecember 31,


Identical Assets


Observable Inputs


Unobservable Inputs2008


(Level 1)


(Level 2)


(Level 3)Assets:Impaired loans

$
1,269


$



$
1,269


$
       2008


2007Carrying


Fair


Carrying


FairAmount


Value


Amount


ValueFinancial assetsCash and cash equivalents

$
32,513


$
32,513


$
73,478


$
73,478Securities available for sale


483,016



483,016



542,875



542,875Securities held to maturity


172,343



176,579



20,091



20,202Loans held for sale


159,884



159,884



13,172



13,172Loans, net


1,239,708



1,247,457



908,650



903,831Federal Home Loan Bank stock


18,069



N/A



6,241



N/AMembership capital account at corporate credit union










1,000



1,000Accrued interest receivable


8,519



8,519



6,778



6,778Financial liabilitiesDeposits


(1,548,090
)


(1,558,107
)


(1,297,593
)


(1,325,853
)Federal Home Loan Bank advances


(410,841
)


(427,243
)


(128,451
)


(130,588
)Repurchase agreement


(25,000
)


(24,980
)






Accrued interest payable


(1,769
)


(1,769
)


(982
)


(982
)      91




---



##### Table of Contents



VIEWPOINT
    FINANCIAL GROUP AND SUBSIDIARY
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (Dollar amounts in thousands)
  NOTE 7 
    LOAN
    SALES AND SERVICING   2008


2007Loans held for sale activity was as follows:Beginning balance

$
13,172


$
3,212Loans originated for sale


591,218



87,378Proceeds from sale of loans held for sale


(453,896
)


(78,716
)Net gain on sale of loans held for sale


9,390



1,298Loans held for sale, net

$
159,884


$
13,172     2008


2007


2006Mortgage loan portfolios serviced forFNMA

$
178,611


$
203,933


$
216,518Other investors


256,403



194,518



148,811         2008


2007


2006Servicing rights:Beginning of year

$
1,648


$
1,760


$
2,068Additions


16



179



96Amortized to expense


(292
)


(291
)


(404
)End of year

$
1,372


$
1,648


$
1,760      92




---



##### Table of Contents



VIEWPOINT
    FINANCIAL GROUP AND SUBSIDIARY
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (Dollar amounts in thousands)
   NOTE 7 
    LOAN SALES AND
    SERVICING (Continued)
    2009

$
2552010


2102011


1722012


1412013


116   NOTE 8 
    ACCRUED
    INTEREST RECEIVABLE     December 31, 2008


December 31, 2007Loans

$
5,559


$
3,993Securities


2,960



2,785Total

$
8,519


$
6,778   NOTE 9 
    PREMISES
    AND EQUIPMENT     December 31, 2008


December 31, 2007Land

$
12,105


$
9,740Buildings


41,802



36,897Furniture, fixtures and equipment


34,728



34,594Leasehold improvements


2,918



2,32191,553



83,552Less: Accumulated depreciation


(45,616
)


(42,690
)Total

$
45,937


$
40,862     Operating Leases
  2009

$
1,6212010


1,2802011


1,1772012


9862013


595Thereafter


3,610Total

$
9,269  93




---



##### Table of Contents



VIEWPOINT
    FINANCIAL GROUP AND SUBSIDIARY
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (Dollar amounts in thousands)
  NOTE 9 
    PREMISES AND EQUIPMENT (Continued)      NOTE 10 
    DEPOSITS         2009

$
539,3642010


57,0372011


7,0182012


6,4242013


31,713Thereafter


12Total

$
641,568       Years EndedDecember 31,2008


2007


2006Interest-bearing demand

$
868


$
428


$
226Savings and money market


14,442



17,711



18,432Time


20,219



18,934



10,260Total

$
35,529


$
37,073


$
28,918   94




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##### Table of Contents



VIEWPOINT
    FINANCIAL GROUP AND SUBSIDIARY
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (Dollar amounts in thousands)
  NOTE 11 
    REPURCHASE
    AGREEMENT     2008Average balance during the year

$
37,666Average interest rate during the year


3.90
%Maximum month-end balance during the year

$
39,835Weighted average interest rate at year-end


3.05
%   NOTE 12 
    FEDERAL
    HOME LOAN BANK ADVANCES        2009

$
98,3372010


48,6362011


49,1982012


67,1302013


39,711Thereafter


107,829Total

$
410,841   NOTE 13 
    BENEFITS  Post-Retirement Healthcare Plan
 95




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##### Table of Contents



VIEWPOINT
    FINANCIAL GROUP AND SUBSIDIARY
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (Dollar amounts in thousands)
   NOTE 13 
    BENEFITS(Continued)    401(k) Plan
    Deferred Compensation Plan
       96




---



##### Table of Contents



VIEWPOINT
    FINANCIAL GROUP AND SUBSIDIARY
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (Dollar amounts in thousands)
   NOTE 13 
    BENEFITS(Continued)      NOTE 14 
    ESOP
    PLAN        2008


2007Allocated to participants


208,888



116,049Unearned


719,507



812,346Total ESOP shares


928,395



928,395Fair value of unearned shares

$
11,548


$
13,428   NOTE 15  INCOME
    TAXES
  Accounting for Income
    Taxes
 97




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##### Table of Contents



VIEWPOINT
    FINANCIAL GROUP AND SUBSIDIARY
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (Dollar amounts in thousands)
   NOTE 15  INCOME
    TAXES (Continued)
    2008


2007


2006Current expense

$
3,109


$
3,020


$
1,879Deferred expense


(5,304
)


(276
)


310Change in tax status










(6,108
)Impact of new Texas margin tax on deferred taxes










362Total income tax expense

$
(2,195
)

$
2,744


$
(3,557
)     December 31, 2008


December 31, 2007Deferred tax assets:Allowance for loan losses

$
3,143


$
2,137Depreciation


2,346



2,735Deferred compensation arrangements


486



612Self-funded health insurance


129



161Non-accrual interest


90



18Restricted stock and options


384



370FAS 115


855



Other-than temporary impairment


4,786



Visa litigation






199Other


275



15912,494



6,391Deferred tax liabilities:Mortgage servicing assets


(476
)


(571
)FAS 115






(457
)Other


(111
)


(72
)(587
)


(1,100
)Net deferred tax asset

$
11,907


$
5,291    98




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##### Table of Contents



VIEWPOINT
    FINANCIAL GROUP AND SUBSIDIARY
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (Dollar amounts in thousands)
   NOTE 15  INCOME
    TAXES (Continued)
    2008


2007


2006Federal statutory rate times financial statement income

$
(1,819
)

$
2,656


$
2,084Effect of:State taxes, net of federal benefit


72



179



81New market tax credit


(106
)


(84
)


(32
)Bank-owned life insurance income


(368
)


(156
)


Change in tax status










(6,108
)Impact of new Texas margin tax










362Municipal interest income


(43
)






ESOP


26



133



Other


43



16



56Total income tax expense (benefit)

$
(2,195
)

$
2,744


$
(3,557
)Unaudited Pro Forma Financial Information:     NOTE 16 
    RELATED
    PARTY TRANSACTIONS    Beginning balance

$
1,736New loans


663Effect of changes in composition of related parties


Repayments


(173
)Ending balance

$
2,226     NOTE 17 
    SHARE-BASED
    COMPENSATION     99




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##### Table of Contents



VIEWPOINT
    FINANCIAL GROUP AND SUBSIDIARY
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (Dollar amounts in thousands)
   NOTE 17 
    SHARE-BASED
    COMPENSATION(Continued)        Weighted-AverageGrant DateShares


Fair ValueNonvested at January 1, 2008


420,208


$
18.47Granted


10,000



16.53Vested


(84,047
)


18.47Forfeited






Non-vested at December 31, 2008


346,161


$
18.41        100




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##### Table of Contents



VIEWPOINT
    FINANCIAL GROUP AND SUBSIDIARY
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (Dollar amounts in thousands)
   NOTE 17 
    SHARE-BASED
    COMPENSATION(Continued)      2008


2007Risk-free interest rate


3.45
%


4.75
%Expected term of stock options (years)


7.5



7.5Expected stock price volatility


26.19
%


21.27
%Expected dividends


1.84
%


1.08
%     Weighted-Weighted-


AverageAverage


Remaining


AggregateExercise


Contractual


IntrinsicOptions

Shares


Price


Term


ValueOutstanding at beginning of year


202,942


$
18.44







Granted


78,250



16.32







Exercised














Forfeited


(45,531
)


17.56







Outstanding at end of year


235,661


$
17.91



8.7


$
Fully vested and expected to vest


226,197


$
17.95



8.7


$
Exercisable at end of year


16,459


$
18.40



8.5


$
       NOTE 18 
    REGULATORY
    CAPITAL MATTERS   101




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##### Table of Contents



VIEWPOINT
    FINANCIAL GROUP AND SUBSIDIARY
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (Dollar amounts in thousands)
   NOTE 18 
    REGULATORY
    CAPITAL MATTERS(Continued)        To Be Well CapitalizedRequired for Capital


Under Prompt CorrectiveActual


Adequacy Purposes


Action RegulationsAmount


Ratio


Amount


Ratio


Amount


Ratio(Dollars in Thousands)As of December 31, 2008:Total capital (to risk weighted assets)

$
163,596



11.17
%

$
117,146



8.00
%

$
146,432



10.00
%Tier 1 (core) capital (to risk weighted assets)


154,856



10.58



58,573



4.00



87,859



6.00Tier 1 (core) capital (to adjusted total assets)


154,856



7.02



88,258



4.00



110,323



5.00As of December 31, 2007:Total capital (to risk weighted assets)

$
167,002



16.36
%

$
81,649



8.00
%

$
102,061



10.00
%Tier 1 (core) capital (to risk weighted assets)


161,167



15.79



40,824



4.00



61,236



6.00Tier 1 (core) capital (to adjusted total assets)


161,167



9.75



66,099



4.00



82,624



5.00     Dividend Restrictions
 102




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##### Table of Contents



VIEWPOINT
    FINANCIAL GROUP AND SUBSIDIARY
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (Dollar amounts in thousands)
   NOTE 18 
    REGULATORY
    CAPITAL MATTERS(Continued)      December 31,2008


2007GAAP equity

$
162,649


$
166,435Disallowed servicing and deferred tax assets


(8,344
)


(3,308
)Unrealized loss (gain) on securities available for sale


1,613



(861
)Goodwill and other assets


(1,062
)


(1,099
)Tier I Capital


154,856



161,167General allowance for loan losses


8,740



5,835Total capital

$
163,596


$
167,002   NOTE 19 
    LOAN
    COMMITMENTS, CONTINGENT LIABILITIES AND OTHER RELATED
    ACTIVITIES      2008


2007Fixed


Variable


Fixed


VariableRate


Rate


Rate


RateCommitments to make loans

$
74,526



53,133


$
43,037



25,503Unused lines of credit


6,894



95,633



7,714



62,872    103




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##### Table of Contents



VIEWPOINT
    FINANCIAL GROUP AND SUBSIDIARY
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (Dollar amounts in thousands)
   NOTE 19 
    LOAN
    COMMITMENTS, CONTINGENT LIABILITIES AND OTHER RELATED ACTIVITIES(Continued)               104




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##### Table of Contents



VIEWPOINT
    FINANCIAL GROUP AND SUBSIDIARY
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (Dollar amounts in thousands)
   NOTE 19 
    LOAN
    COMMITMENTS, CONTINGENT LIABILITIES AND OTHER RELATED ACTIVITIES(Continued)    NOTE 20 
    BUSINESS
    COMBINATION        Fixed assets

$
176Pre-paid rents on assigned contracts


33Security deposits on assigned contracts


25Goodwill


1,089Total

$
1,323     2008


2007Beginning of year

$
1,089


$
Acquired goodwill






1,089Impairment






End of year

$
1,089


$
1,089    105




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##### Table of Contents



VIEWPOINT
    FINANCIAL GROUP AND SUBSIDIARY
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (Dollar amounts in thousands)
  NOTE 21 
    PARENT
    COMPANY ONLY CONDENSED FINANCIAL INFORMATION    CONDENSED
    BALANCE SHEETS
    Year Ended December 31,
  2008


2007ASSETSCash on deposit at subsidiary

$
22,904


$
27,953Investment in banking subsidiary


162,650



166,435Receivable from banking subsidiary


1,129



1,090ESOP note receivable and other assets


7,422



8,551Total assets

$
194,105


$
204,029LIABILITIES AND EQUITYIncome tax payable

$
21


$
51Other liabilities


27



184Shareholders equity


194,057



203,794Total liabilities and shareholders equity

$
194,105


$
204,029   CONDENSED
    STATEMENTS OF INCOME (LOSS)
  Year Ended December 31,2008


2007


20061Interest income on ESOP loans

$
435


$
481


$
125Other income






1



Operating expenses


344



333



Income before income tax and equity in undistributed earnings of
    subsidiary


91



149



125Income tax expense


31



50



Equity in undistributed earnings (loss) of subsidiary


(3,216
)


4,968



1,824Net income (loss)

$
(3,156
)

$
5,067


$
1,949    1

    
    ViewPoint Financial Group was formed on September 29, 2006,
    so income is given for September 29, 2006 through
    December 31, 2006. 106




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##### Table of Contents



VIEWPOINT
    FINANCIAL GROUP AND SUBSIDIARY
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (Dollar amounts in thousands)
   NOTE 21 
    PARENT
    COMPANY ONLY CONDENSED FINANCIAL INFORMATION(Continued)   CONDENSED
    STATEMENTS OF CASH FLOWS
  December 31,2008


2007


20061Cash flows from operating activities:Net income (loss)

$
(3,156
)

$
5,067


$
1,949Adjustments:Equity (loss) in undistributed income of bank subsidiary


3,216



(4,968
)


(1,824
)Vesting of restricted stock


1,601







Change in other assets


(25
)






Change in other liabilities


(187
)


50



Net cash from operating activities


1,449



149



125Cash flows from investing activities:Initial investment in banking subsidiary










(55,828
)Fund ESOP note receivable










(9,284
)Distribution to capitalize ViewPoint MHC










(250
)Payments received on ESOP note receivable


968



552



180Net cash from investing activities


968



552



(65,182
)Cash flows from financing activities:Treasury stock purchased


(4,312
)


(17,566
)


Dividends paid


(3,154
)


(2,115
)


Proceeds from sale of common stock, net of issuance costs










111,990Net cash from financing activities


(7,466
)


(19,681
)


111,990Net change in cash and cash equivalents


(5,049
)


(18,980
)


46,933Beginning cash and cash equivalents


27,953



46,933



Ending cash and cash equivalents

$
22,904


$
27,953


$
46,933    1

    
    ViewPoint Financial Group was formed on September 29, 2006,
    so income is given for September 29, 2006 through
    December 31, 2006. 107




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##### Table of Contents



VIEWPOINT
    FINANCIAL GROUP AND SUBSIDIARY
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (Dollar amounts in thousands)
   NOTE 22 
    EARNINGS
    (LOSS) PER SHARE    2008


2007


2006BasicNet income (loss)

$
(3,156
)

$
5,067


$
1,949Weighted average common shares outstanding


25,078,598



25,746,038



25,788,750Less: Average unallocated ESOP shares


(769,435
)


(862,296
)


(922,406
)Average unvested restricted stock awards


(378,769
)


(257,176
)


Average shares


23,930,394



24,626,566



24,866,344Basic earnings (loss) per common share

$
(0.13
)

$
0.20


$
0.08DilutedNet income (loss)

$
(3,156
)

$
5,067


$
1,949Weighted average common shares outstanding for basic earnings
    (loss) per common share


23,930,394



24,626,566



24,866,344Add: Dilutive effects of assumed exercises of stock options










Dilutive effects of full vesting of stock awards










Average shares and dilutive potential common shares


23,930,394



24,626,566



24,866,344Diluted earnings (loss) per common share

$
(0.13
)

$
0.20


$
0.08     NOTE 23 
    SEGMENT
    INFORMATION   108




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##### Table of Contents



VIEWPOINT
    FINANCIAL GROUP AND SUBSIDIARY
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (Dollar amounts in thousands)
   NOTE 23 
    SEGMENT
    INFORMATION(Continued)    Year Ended December 31, 2008Eliminations


Total SegmentsMortgage


and


(ConsolidatedBanking


Banking


Adjustments1


Total)Results of Operations:Total interest income

$
97,101


$
1,272


$
(965
)

$
97,408Total interest expense


46,604



603



(1,038
)


46,169Provision for loan loss


6,171











6,171Net interest income after provision for loan loss


44,326



669



73



45,068Other revenue


23,194



(3
)


(73
)


23,118Net gain on sales of loans


61



13,138



(3,809
)


9,390Non-cash loss on write-down of collateralized debt obligations
    to fair value


(13,809
)










(13,809
)Total noninterest expense


59,488



13,168



(3,538
)


69,118Income (loss) before income tax expense (benefit)


(5,716
)


636



(271
)


(5,351
)Income tax expense (benefit)


(2,500
)


274



31



(2,195
)Net income (loss)

$
(3,216
)

$
362


$
(302
)

$
(3,156
)Segment assets

$
2,214,463


$
26,831


$
(27,879
)

$
2,213,415Noncash items:Depreciation


4,184



181







4,365Provision for loan loss


6,171











6,171Net gain on loan sale


61



13,138



(3,809
)


9,390    1

    
    Includes eliminating entries for intercompany transactions and
    stand-alone expenses of ViewPoint Financial Group. 109




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##### Table of Contents



VIEWPOINT
    FINANCIAL GROUP AND SUBSIDIARY
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (Dollar amounts in thousands)
   NOTE 24 
    QUARTERLY
    FINANCIAL DATA(Unaudited)  Net InterestIncome afterInterest


Provision for


Net


Earnings (loss) per ShareIncome


Loan Losses


Income (loss)


Basic


Diluted2008First quarter

$
22,132


$
10,253


$
1,538


$
0.06


$
0.06Second quarter


23,205



10,923



1,439



0.06



0.06Third quarter


25,423



11,905



1,229



0.06



0.06Fourth quarter


26,648



11,987



(7,362
)1


(0.31
)1


(0.31
)12007First quarter

$
19,910


$
9,565


$
1,099


$
0.04


$
0.04Second quarter


20,772



10,054



1,315



0.05



0.05Third quarter


21,792



10,513



1,601



0.07



0.07Fourth quarter


21,580



9,533



1,052



0.04



0.04    1

    
    During the fourth quarter of 2008, the Company recognized a
    $13.8 million non-cash pre-tax charge for
    other-than-temporary impairment of collateralized debt
    obligations. 110




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##### Table of Contents



Item 9.
    Changes
    in and Disagreements with Accountants on Accounting and
    Financial Disclosure    Item 9A.
    Controls
    and Procedures  (a)
    Evaluation of Disclosure Controls and Procedures: An
    evaluation of our disclosure controls and procedures (as defined
    in
    Rule 13a-15(e)
    under the Securities Exchange Act of 1934 (the Act))
    was carried out as of December 31, 2008, under the
    supervision and with the participation of our Chief Executive
    Officer, Chief Financial Officer and several other members of
    our senior management. Our Chief Executive Officer and Chief
    Financial Officer concluded that, as of December 31, 2008,
    our disclosure controls and procedures were effective in
    ensuring that the information we are required to disclose in the
    reports we file or submit under the Act is (i) accumulated
    and communicated to our management (including the Chief
    Executive Officer and Chief Financial Officer) in a timely
    manner, and (ii) recorded, processed, summarized and
    reported within the time periods specified in the SECs
    rules and forms.  (b)
    Managements Report on Internal Control Over Financial
    Reporting: Management of the Company is responsible for
    establishing and maintaining an effective system of internal
    control over financial reporting. The Companys system of
    internal control over financial reporting is designed to provide
    reasonable assurance regarding the reliability of financial
    reporting and the preparation of financial statements for
    external purposes in accordance with generally accepted
    accounting principles. There are inherent limitations in the
    effectiveness of any system of internal control over financial
    reporting, including the possibility of human error and
    circumvention or overriding of controls. Accordingly, even an
    effective system of internal control over financial reporting
    can provide only reasonable assurance with respect to financial
    statement preparation. Projections of any evaluation of
    effectiveness to future periods are subject to the risks that
    controls may become inadequate because of changes in conditions
    or that the degree of compliance with the policies or procedures
    may deteriorate.  Form 10-K
  (c)
    Changes in Internal Control Over Financial Reporting:
    During the quarter ended December 31, 2008, no change
    occurred in our internal control over financial reporting that
    has materially affected, or is reasonably likely to materially
    affect, our internal control over financial reporting.  Item 9B.
    Other
    Information   PART III  Item 10.
    Directors,
    Executive Officers and Corporate Governance  Directors and Executive Officers.
 111




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##### Table of Contents



Form 10-K,
  Section 16(a) Beneficial Ownership Reporting
    Compliance.
  Code of Ethics.
  Item 11.
    Executive
    Compensation    Item 12.
    Security
    Ownership of Certain Beneficial Owners and Management and
    Related Shareholder Matters  Form 10-K
  Item 13.
    Certain
    Relationships and Related Transactions, and Director
    Independence    Item 14.
    Principal
    Accountant Fees and Services   PART IV  Item 15.
    Exhibits,
    Financial Statement Schedules    (a)(2)
    Financial Statement Schedules: All financial statement schedules
    have been omitted as the information is not required under the
    related instructions or is not applicable.   112




---



##### Table of Contents



ExhibitNumber

Description3.1

Charter of the Registrant (incorporated herein by reference to
    Exhibit 3.1 to the Registrants Registration Statement
    on
    Form S-1,
    as amended (File
    No. 0-24566-01))3.2

Bylaws of the Registrant (incorporated herein by reference to
    Exhibit 3.2 to the Registrants Current Report on
    Form 8-K
    filed with the SEC on November 24, 2008 (File
    No. 001-32992))4.1

Certificate of Registrants Common Stock (incorporated
    herein by reference to Exhibit 4.0 to the Registrants
    Registration Statement on
    Form S-1,
    as amended (File
    No. 0-24566-01))10.1

Employment Agreement by and between the Registrant and Garold R.
    Base (incorporated herein by reference to Exhibit 10.1 to
    the Registrants Current Report on
    Form 8-K
    filed with the SEC on October 4, 2006 (File
    No. 001-32992))10.2

Amendment to Employment Agreement by and between the Registrant
    and Garold R. Base (incorporated herein by reference to
    Exhibit 10.1 to the Registrants Current Report on
    Form 8-K
    filed with the SEC on January 10, 2008 (File
    No. 001-32992))10.3

Employment Agreement by and between ViewPoint Bank, the
    Registrants wholly owned operating subsidiary, and Garold
    R. Base (incorporated herein by reference to Exhibit 10.2
    to the Registrants Current Report on
    Form 8-K
    filed with the SEC on October 4, 2006 (File
    No. 001-32992))10.4

Amendment to Employment Agreement by and between ViewPoint Bank,
    the Registrants wholly owned operating subsidiary, and
    Garold R. Base (incorporated herein by reference to
    Exhibit 10.2 to the Registrants Current Report on
    Form 8-K
    filed with the SEC on January 10, 2008 (File
    No. 001-32992))10.5

Amendment to Employment Agreement by and between ViewPoint Bank,
    the Registrants wholly owned operating subsidiary, and
    Garold R. Base (incorporated herein by reference to
    Exhibit 10.1 to the Registrants Current Report on
    Form 8-K
    filed with the SEC on March 6, 2008 (File
    No. 001-32992))10.6

Form of Severance Agreement (incorporated herein by reference to
    Exhibit 10.3 to the Registrants Current Report on
    Form 8-K
    filed with the SEC on October 1, 2007 (File
    No. 001-32992))10.7

Summary of Director Board Fee Arrangements (incorporated herein
    by reference to Exhibit 3.2 to the Registrants
    Quarterly Report on
    Form 10-Q
    filed with the SEC on August 9, 2007 (File
    No. 001-32992))10.8

ViewPoint Bank Deferred Compensation Plan (incorporated herein
    by reference to Exhibit 10.7 to the Registrants
    Registration Statement on
    Form S-1,
    as amended (File
    No. 0-24566-01))10.9

Amended and Restated ViewPoint Bank Supplemental Executive
    Retirement Plan (incorporated herein by reference to
    Exhibit 10.8 to the Registrants Registration
    Statement on
    Form S-1,
    as amended (File
    No. 0-24566-01))10.10

ViewPoint Bank 2007 Executive Officer Incentive Plan
    (incorporated herein by reference to Exhibit 10.1 to the
    Registrants Current Report on
    Form 8-K
    filed with the SEC on July 31, 2007 (File
    No. 001-32992))10.11

Amendment to ViewPoint Bank 2007 Executive Officer Incentive
    Plan (incorporated herein by reference to the Registrants
    Current Report on
    Form 8-K
    filed with the SEC on March 6, 2008 (File
    No. 001-32992))11

Statement regarding computation of per share earnings (See
    Note 22 of the Notes to Consolidated Financial Statements
    included in this
    Form 10-K).21

Subsidiaries of the Registrant23

Consent of Independent Registered Public Accounting Firm24

Power of Attorney (on signature page)31.1

Rule 13a  14(a)/15d  14(a)
    Certification (Chief Executive Officer)31.2

Rule 13a  14(a)/15d  14(a)
    Certification (Chief Financial Officer)32

Section 1350 Certifications  113




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##### Table of Contents



SIGNATURES  Pursuant to the requirements of Section 13 or 15
    (d) of the Securities Exchange Act of 1934, the registrant
    has duly caused this report to be signed on its behalf by the
    undersigned hereunto duly authorized.
  VIEWPOINT FINANCIAL GROUP
    (Registrant)By:

/s/  Garold
    R. BaseDate March 26, 2009



Garold R. BasePresident and Chief Executive Officer
    (Principal Executive Officer)    his/her Form 10-K
  Pursuant to the requirements of the Securities Exchange Act
    of 1934, this report has been signed below by the following
    persons on behalf of the Registrant and in the capacities and on
    the dates indicated.
  /s/  Garold
    R. BaseGarold
    R. Base, President, Chief Executive Officer and Director(Duly authorized representative and Principal Executive
    Officer)

Date:    March 26,  2009/s/  Gary
    D. BashamGary
    D. Basham, Vice Chairman of the Board and Director

Date:    March 26, 2009/s/  Jack
    D. ErsmanJack
    D. Ersman, Director

Date:    March 26, 2009/s/  Anthony
    J. LeVecchioAnthony
    J. LeVecchio, Director

Date:    March 26, 2009/s/  Karen
    H. OSheaKaren
    H. OShea, Director

Date:    March 26, 2009/s/  Pathie
    E. McKeePathie
    E. McKee, Executive Vice President, Chief Financial Officer and
    Treasurer (Principal Financial and Accounting Officer)

Date: March 26, 2009  114




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##### Table of Contents



EXHIBIT INDEX
  Exhibits:21


Subsidiaries of the Registrant23


Consent of Accountants31
.1

Certification of the Chief Executive Officer31
.2

Certification of the Chief Financial Officer32


Section 1350 Certifications  115