Veritex Holdings, Inc. (NASDAQ:VBTX) Q1 2025 Earnings Conference Call April 23, 2025 9:30 AM ET Company Participants Will Holford - Director, Strategic Corporate Development Malcolm Holland - Chief Executive Officer Curtis Anderson - Chief Credit Officer Terry Earley - Chief Financial Officer Conference Call Participants Brett Rabatin - Hovde Group, LLC Stephen Scouten - Piper Sandler Companies Michael Rose - Raymond James Financial, Inc. Catherine Mealor - Keefe, Bruyette & Woods, Inc. Gary Tenner - D. A. ...

Veritex Holdings, Inc. First Quarter 2025 Results Investor Presentation April 23, 2025 NASDAQ: VBTX A BETTER STATE OF BANKING © 2025 Veritex Bank Member FDIC Forward-Looking Statements This presentation includes "forward-looking statements", within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on various facts and derived utilizing assumptions, current expectations, estimates and projections and are subject to known and unknown risks, uncertainties ...

For the quarter ended March 2025, Veritex Holdings (VBTX) reported revenue of $109.73 million, up 10.3% over the same period last year. EPS came in at $0.54, compared to $0.53 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $110.7 million, representing a surprise of -0.88%. The company delivered an EPS surprise of +5.88%, with the consensus EPS estimate being $0.51.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall S ...

Financial Performance - Net income for Q1 2025 was $29.07 million, an increase of 16.4% from $24.88 million in Q4 2024 and 20.0% from $24.16 million in Q1 2024[2] - Diluted EPS rose to $0.53 in Q1 2025, compared to $0.45 in Q4 2024 and $0.44 in Q1 2024[2] - Basic EPS for Q1 2025 was $0.53, an increase from $0.44 in Q1 2024, representing a 20.5% year-over-year growth[23] - Net income increased to $29,070 thousand for the quarter ended March 31, 2025, compared to $24,882 thousand in the prior quarter, reflecting a growth of 16.4%[27] - The operating pre-tax income for the same quarter was $29,587,000, compared to $30,824,000 in the prior quarter[54] - The diluted EPS for the quarter was $0.53, up from $0.45 in the previous quarter[54] Income and Expenses - Noninterest income for Q1 2025 was $14.3 million, an increase of 42.1% from Q4 2024[6] - Noninterest expense decreased to $66.8 million, down 6.1% from $71.2 million in Q4 2024[8] - Total noninterest income rose to $14,289 thousand in Q1 2025, compared to $10,056 thousand in Q4 2024, an increase of 42.1%[27] - Operating noninterest expense was $66,834,000, a decrease from $71,194,000 in the previous quarter[56] Asset Quality - The allowance for credit losses (ACL) as a percentage of LHI was 1.19% as of March 31, 2025, compared to 1.18% at December 31, 2024[14] - Criticized assets decreased by approximately $17.7 million during the quarter[3] - Net charge-offs to average loans outstanding decreased to 0.17% in Q1 2025 from 0.22% in Q1 2024, indicating better credit quality[23] - Nonperforming assets (NPAs) totaled $96,901 thousand, an increase from $79,172 thousand at December 31, 2024, indicating a rise of 22.9%[36] - The net charge-offs for the quarter were $(3,972) thousand, down from $(7,717) thousand in the previous quarter, indicating an improvement in asset quality[36] - The ratio of NPAs to total assets was 0.77% as of March 31, 2025, up from 0.62% at December 31, 2024, highlighting a deterioration in asset quality[36] Capital and Equity - Tier 1 capital to risk-weighted assets was 11.31% in Q1 2025, slightly down from 11.36% in Q4 2024, maintaining strong capital adequacy[23] - Total capital to risk-weighted assets ratio was 13.46% in Q1 2025, compared to 13.96% in Q4 2024, reflecting a stable capital position[23] - Stockholders' equity increased to $1,620,788 thousand as of March 31, 2025, compared to $1,604,335 thousand at the end of 2024[29] - As of March 31, 2025, total stockholders' equity was $1,633,480,000, an increase from $1,601,069,000 as of December 31, 2024[42] - Tangible common equity as of March 31, 2025, was $1,212,722,000, compared to $1,177,873,000 as of December 31, 2024, reflecting a growth of 2.9%[42] Efficiency and Ratios - The efficiency ratio improved to 60.91% in Q1 2025 compared to 62.45% in Q1 2024, indicating enhanced operational efficiency[23] - The average yield on loans decreased to 6.40% in Q1 2025 from 6.56% in Q4 2024, while the average yield on debt securities increased to 4.73% from 4.61%[31] - The net interest rate spread improved to 2.24% in Q1 2025, compared to 2.03% in Q4 2024, indicating better profitability on interest-earning assets[31] - The pre-tax, pre-provision operating return on average assets was 1.41%, an increase from 1.28% in the previous quarter[56] - The operating return on average tangible common equity was 10.70%, up from 10.69% in the previous quarter[56] Loans and Deposits - Total loans held for investment (LHI) decreased to $8.83 billion, down $70.5 million from December 31, 2024[11] - Total deposits were $10.67 billion, a decrease of $87.5 million, or 3.3%, linked quarter annualized[12] - Total loans increased to $9,478,283 thousand as of March 31, 2025, compared to $9,602,835 thousand at December 31, 2024, reflecting a decrease of 1.3%[34] - Total deposits decreased to $10,665,123 thousand as of March 31, 2025, down from $10,752,592 thousand at December 31, 2024, a decline of 0.81%[25] - The total loans to deposits ratio was 88.9% as of March 31, 2025, slightly down from 89.3% at December 31, 2024[34] Dividends - The company declared a quarterly cash dividend of $0.22 per share, payable on May 22, 2025[15] - Dividends paid per common share increased to $0.22 in Q1 2025 from $0.20 in Q4 2024, marking a 10.0% increase[23]

DALLAS, April 22, 2025 (GLOBE NEWSWIRE) -- Veritex Holdings, Inc. (“Veritex”, the “Company”, “we” or “our”) (Nasdaq: VBTX), the holding company for Veritex Community Bank, today announced the results for the quarter ended March 31, 2025. “We continue to strengthen our balance sheet in support of our clients during a time of change and uncertainty,” said C. Malcolm Holland, III, the Company’s Chairman and Chief Executive Officer. “Key operating financial and credit performance metrics continue to improve and ...

DALLAS, April 08, 2025 (GLOBE NEWSWIRE) -- Veritex Holdings, Inc. (NASDAQ:VBTX) ("Veritex" or "the Company"), the parent holding company for Veritex Community Bank, today announced that it plans to release its first quarter 2025 results after the close of the market on Tuesday, April 22, 2025. The earnings release will be available on the Company's website, https://ir.veritexbank.com/. The Company will also host an investor conference call to review the results on Wednesday, April 23, 2025 at 8:30 a.m. Cent ...

DALLAS, March 31, 2025 (GLOBE NEWSWIRE) -- Veritex Holdings, Inc. (NASDAQ:VBTX) ("Veritex" or "the Company"), the parent holding company for Veritex Community Bank, today announced that its Board of Directors (the "Board") authorized the extension of the stock buyback program (the "Stock Buyback Program") through March 31, 2026, pursuant to which the Company is authorized to purchase up to $50.0 million shares of the Company's outstanding common stock. To date, the Company has repurchased 555,016 shares, or ...

Financial Performance - As of December 31, 2024, total loans held for investment (LHI) amounted to $9.39 billion, representing 73.6% of total assets[30] - The gain on sale of USDA loans for 2024 was $2.286 million, compared to $13.190 million in 2022 and $10.731 million in 2023[27] - The book value of the available-for-sale (AFS) and held-to-maturity (HTM) debt securities portfolio totaled $1.55 billion, with an average tax-equivalent yield of 4.56%[36] - On January 28, 2025, the Company declared a quarterly cash dividend of $0.20 per share, reflecting strong performance and organic capital generation[81] - The Company reported a Common Equity Tier 1 (CET1) capital ratio of 11.09% and the Bank reported 12.52%, both above the required minimum of 4.5%[73] - The Company and the Bank maintained a total capital ratio of 13.96% and 13.49% respectively, exceeding the minimum regulatory requirements[73] - The Company has adopted the Current Expected Credit Loss (CECL) methodology, with a five-year transition period for regulatory capital impacts starting from January 1, 2020[70] Regulatory Environment - The company is subject to ongoing and comprehensive supervision, regulation, examination, and enforcement by the Federal Reserve and the Texas Department of Banking (TDB)[49] - The Dodd-Frank Act imposes significant regulatory and compliance requirements, including increased capital, leverage, and liquidity requirements[53] - The company must comply with the Volcker Rule, which generally prohibits banking entities from engaging in proprietary trading[58] - The Dodd-Frank Act requires bank holding companies to act as a source of financial and managerial strength to their banking subsidiaries[55] - The company is subject to periodic reporting requirements, including annual audit reports prepared by independent auditors[50] - The Dodd-Frank Act made permanent the general $250,000 deposit insurance limit for insured deposits[56] - The Federal Reserve's capital requirements for the Company include maintaining a CET1 capital of at least 4.5% of Risk-Weighted Assets (RWA) and a total capital ratio of at least 8%[68] - The company is subject to increased regulation as a banking organization with over $10 billion in total consolidated assets[121] Operational Strategy - The company focuses on organic growth and strategic acquisitions to expand its customer base and market share[28] - The company aims to improve operational efficiency and increase profitability through a scalable infrastructure[34] - The company actively pursues business checking accounts and offers competitive rates to attract small to medium-sized businesses[32] - The company intends to pursue strategic acquisitions of financial institutions, which require regulatory approvals that may not be granted on acceptable terms[193] Market Conditions - The primary market includes the Dallas-Fort Worth metroplex and the Houston metropolitan area, which are experiencing rapid population and job growth[37] - The company faces risks related to its business concentration in Texas, particularly in the Dallas-Fort Worth metroplex and Houston metropolitan area, which may magnify the impact of regional economic downturns[125] - The company operates in an uncertain economic environment, with direct exposure to the residential and commercial real estate markets in Texas, particularly in the Dallas-Fort Worth and Houston areas[126] - Recent bank failures in March and May 2023 have led to increased market volatility and decreased customer confidence in regional banks, impacting the company's operations[207] Credit Risk and Loan Portfolio - As of December 31, 2024, the company's allowance for credit losses (ACL) was $111.7 million, representing a significant portion of its total loan portfolio[143] - 28.3% of the company's loan portfolio, amounting to $2.69 billion, consists of commercial loans to businesses, which are subject to higher credit risk due to their reliance on ongoing business operations[137] - The loan portfolio has grown to $9.51 billion as of December 31, 2024, with organic growth and acquisitions contributing to this increase[154] - As of December 31, 2024, 33.2% of the loan portfolio, or $3.16 billion, consisted of commercial real estate (CRE) loans, and 13.7%, or $1.30 billion, consisted of construction and land loans[156] - 71.6% of the loan portfolio, amounting to $6.81 billion, consists of loans secured by real estate as a primary or secondary component[158] - The financial condition of small to medium-sized businesses, which are the primary focus of the company's lending strategy, may be more vulnerable to economic downturns, impacting their ability to repay loans[141] Compliance and Risk Management - The company incurs significant costs related to compliance with banking statutes, regulations, and policies[44] - The company has dedicated significant resources to its BSA/AML programs to comply with regulations, and deficiencies could lead to liability and restrictions on business plans[197] - The company must navigate significant operational risks, including employee fraud and data processing errors, which could lead to financial losses and regulatory sanctions[175] - The company is required to notify its primary federal regulator of significant computer security incidents no later than 36 hours after determining the incident has occurred[112] Economic and Environmental Risks - The company may experience increased credit losses due to natural disasters or significant climate change effects, impacting overall financial results[161] - Changes in laws, regulations, or policies could adversely affect the operating environment and profitability of the Company[118] - The company is exposed to risks from labor shortages and supply chain constraints that could affect operations[121] - Unfavorable economic trends, such as sustained high unemployment and declines in real estate values, could lead to increased loan delinquencies and nonperforming assets[128] Competition and Market Position - The company faces significant competition in pursuing acquisition targets, which may drive up acquisition costs and affect growth strategy realization[147] - The company faces strong competition from various financial services companies, which may lead to reduced loans, deposits, and profitability[170] - The company may experience difficulties in attracting and retaining experienced bankers, which is critical for maintaining customer relationships and business growth[151] Technology and Cybersecurity - Cybersecurity risks are evolving and increasing, posing significant threats to the company's data security and potentially harming its reputation and financial condition[183] - The company may experience operational challenges when implementing new technology, such as AI, which could hinder its ability to compete effectively[178] - The legal and regulatory environment regarding AI is rapidly evolving, which may increase compliance costs and risks for the company[179] Financial Obligations and Capital Management - As of December 31, 2024, the company had approximately $199.6 million in subordinated notes and $31.1 million in junior subordinated debentures, indicating significant debt obligations[217] - The company is subject to capital requirements that may restrict activities such as paying dividends or repurchasing shares if minimum capital levels are not maintained[203] - The cost of funding has increased, putting pressure on the company's net interest margin, which could lead to potential losses if securities need to be sold[208]

Veritex Holdings, Inc. Fourth Quarter and Full Year 2024 Results Use of Non-GAAP Financial Measures 2 Investor Presentation January 28, 2025 NASDAQ: VBTX A BETTER STATE OF BANKING © 2024 Veritex Bank Member FDIC Forward-Looking Statements This presentation includes "forward-looking statements", within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on various facts and derived utilizing assumptions, current expectations, estimates and projections and ...

Core Insights - Veritex Holdings (VBTX) reported revenue of $106.2 million for the quarter ended December 2024, reflecting a year-over-year increase of 36.6% but a revenue surprise of -6.27% compared to the Zacks Consensus Estimate of $113.3 million [1] - The company's EPS was $0.54, down from $0.58 in the same quarter last year, with an EPS surprise of -3.57% against the consensus estimate of $0.56 [1] Financial Performance Metrics - Efficiency Ratio (GAAP) was reported at 67%, exceeding the two-analyst average estimate of 60.1% [4] - Net charge-offs to average loans outstanding were 0.2%, better than the two-analyst average estimate of 0.3% [4] - Net Interest Margin stood at 3.2%, slightly below the 3.3% average estimate from two analysts [4] - Total nonperforming loans (NPLs) were $54.44 million, lower than the two-analyst average estimate of $56.41 million [4] - Total nonperforming assets (NPAs) reached $79.17 million, higher than the two-analyst average estimate of $67.79 million [4] - Average Outstanding Balance of Total interest-earning assets was $11.95 billion, compared to the $12.14 billion average estimate based on two analysts [4] - Total Noninterest Income was $10.06 million, significantly below the two-analyst average estimate of $13.55 million [4] - Net Interest Income was reported at $96.14 million, also below the $99.68 million average estimate from two analysts [4] Stock Performance - Over the past month, shares of Veritex Holdings have returned -1.3%, while the Zacks S&P 500 composite has changed by +0.8% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]