Financial Data and Key Metrics Changes - The company reported a net operating profit of $29 million or $0.54 per share for the quarter, with pretax pre-provision earnings at $43.4 million or 1.41% [4] - Total loans decreased by $125 million or 5% annualized, while average balances were down $135 million compared to Q4 [5] - The tangible book value per share increased to $22.33, up from $21.61 at year-end, marking a 13.8% year-over-year increase [16] - The net interest margin (NIM) increased by 11 basis points to 3.31% [25] Business Line Data and Key Metrics Changes - Gross loan production for Q1 was $750 million, with only 31% or $237 million funded [6] - Operating non-interest income increased by 2.4% to $14.8 million on a linked quarter basis, with fee income as a percentage of total revenue rising to 13.4% [29] - Operating non-interest expense declined by $2.8 million for the quarter, leading to an operating efficiency ratio of 60.4% [30] Market Data and Key Metrics Changes - The company moved out over $440 million in wholesale funding during the quarter, reducing reliance on higher-cost deposits [7] - The loan-to-deposit ratio decreased from 104% to 89% over the last two years, with a target to remain below 90% going forward [12][22] Company Strategy and Development Direction - The company aims to achieve a return on assets (ROA) exceeding 1% in the latter half of the year, focusing on disciplined loan growth despite current challenges [5] - The bank plans to continue reducing reliance on unattractively priced deposits and is actively managing its capital and liquidity [14][31] - The company has increased its quarterly dividend by 10% to $0.22 per share, reflecting confidence in its growth outlook and capital generation [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future loan growth, citing a significant increase in loan production over the past year, which is expected to translate into growth in 2026 and beyond [20][42] - The management acknowledged the challenges posed by economic uncertainties, including tariffs and interest rates, but remains committed to delivering value to shareholders [33] - The company is focused on maintaining a conservative allowance for credit losses, with 65% of the weighting on downside scenarios in its economic modeling [18] Other Important Information - The company repurchased 377,000 shares during the quarter, with $37 million remaining on the authorization for further buybacks [17] - Nonperforming assets increased from $79 million at year-end to $97 million, primarily due to two loans in retail and office sectors [10] Q&A Session Summary Question: What is the outlook for deposits and their stickiness? - Management noted that some deposit fluctuations are seasonal, with good work by banking teams contributing to core deposit growth [35] Question: What are the expectations for expenses moving forward? - Management indicated that while expenses are expected to rise slightly due to new hires, there is a strong focus on managing overall costs [37][40] Question: What is the updated outlook for loan growth? - Management anticipates flat loan growth for the year, with potential for improvement in the second half based on pipeline strength [42][43] Question: How does the company view the government-guaranteed business? - Management remains bullish on the government-guaranteed business, expecting it to outperform in the latter half of the year [70][78] Question: What is the strategy regarding the securities portfolio and reinvestment? - The company is currently using cash flows to pay down wholesale funding but will become more active in investments once loan growth picks up [106] Question: What is the outlook for credit trends and non-accrual loans? - Management expressed confidence in managing non-accrual loans, with strategies in place to resolve them by early third quarter [117]

Core Insights - Veritex Holdings (VBTX) reported revenue of $109.73 million for Q1 2025, reflecting a year-over-year increase of 10.3% [1] - The company's EPS for the quarter was $0.54, slightly up from $0.53 in the same quarter last year, with an EPS surprise of +5.88% against a consensus estimate of $0.51 [1] - The reported revenue fell short of the Zacks Consensus Estimate of $110.7 million, resulting in a surprise of -0.88% [1] Financial Performance Metrics - Efficiency Ratio (GAAP) was reported at 60.9%, better than the estimated 61.5% [4] - Net charge-offs to average loans outstanding were 0.2%, outperforming the estimated 0.3% [4] - Net Interest Margin stood at 3.3%, matching the average estimate [4] - Total nonperforming loans (NPLs) amounted to $72.63 million, exceeding the average estimate of $57.03 million [4] - Total nonperforming assets (NPAs) were reported at $96.90 million, higher than the estimated $86.71 million [4] - Average Outstanding Balance of total interest-earning assets was $11.68 billion, below the estimated $11.88 billion [4] - Total Noninterest Income was $14.29 million, slightly below the average estimate of $14.60 million [4] - Net Interest Income was reported at $95.44 million, also below the average estimate of $96.11 million [4] Stock Performance - Over the past month, shares of Veritex Holdings have returned -14.4%, compared to a -8.9% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Veritex Holdings (VBTX) came out with quarterly earnings of $0.54 per share, beating the Zacks Consensus Estimate of $0.51 per share. This compares to earnings of $0.53 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 5.88%. A quarter ago, it was expected that this bank holding company would post earnings of $0.56 per share when it actually produced earnings of $0.54, delivering a surprise of -3.57%. Over the last four quarter ...

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 ...

Core Viewpoint - Veritex Holdings, Inc. plans to release its first quarter 2025 financial results on April 22, 2025, after market close, followed by an investor conference call on April 23, 2025, at 8:30 a.m. Central Time [1]. Group 1 - The earnings release will be available on the Company's website [1]. - Participants can access a live webcast of the conference call through the investor relations section of Veritex's website [2]. - A replay of the conference call will be available approximately two hours after its completion and accessible for one week [3]. Group 2 - Veritex Holdings, Inc. is headquartered in Dallas, Texas, and operates through its wholly-owned subsidiary, Veritex Community Bank [4]. - Veritex Community Bank has locations throughout the Dallas-Fort Worth metroplex and in the Houston metropolitan area [4]. - The bank is regulated by the Texas Department of Banking and the Board of Governors of the Federal Reserve System [4].

Core Viewpoint - Veritex Holdings, Inc. has extended its stock buyback program through March 31, 2026, allowing for the repurchase of up to $50 million of its outstanding common stock, with $13.1 million already repurchased to date [1][2]. Group 1: Stock Buyback Program - The Board of Directors authorized the extension of the Stock Buyback Program, which was originally approved in 2024 and set to expire on March 31, 2025 [1]. - To date, the Company has repurchased 555,016 shares, amounting to $13.1 million under the program [1]. - The program may be suspended, terminated, amended, or modified by the Board at any time without prior notice [1]. Group 2: Funding and Conditions - The Stock Buyback Program is expected to be funded using the Company's cash on hand and cash from operations of Veritex Community Bank [2]. - Repurchases may occur at amounts and prices deemed appropriate by the Company, but there is no obligation to purchase any shares [2]. - Repurchases will be subject to general market and economic conditions, as well as applicable legal and regulatory requirements [2]. Group 3: Company Overview - Veritex Holdings, Inc. is headquartered in Dallas, Texas, and operates through its wholly-owned subsidiary, Veritex Community Bank, which has locations throughout the Dallas-Fort Worth metroplex and in the Houston metropolitan area [3]. - Veritex Community Bank is regulated by the Texas Department of Banking and the Board of Governors of the Federal Reserve System [3].

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 ...

Financial Data and Key Metrics Changes - The company reported a net operating profit of $2.98 billion or $0.54 per share for Q4 2024, with pre-tax pre-provisioned earnings at $41 million or 1.28% [4] - For the full year 2024, operating earnings were $11.94 billion or $2.17 per share, flat compared to 2023 [5] - The net interest margin (NIM) decreased during the quarter but is expected to increase moving forward [5][23] - The allowance for credit losses (ACL) coverage rose to 125 basis points when excluding the mortgage warehouse [16] Business Line Data and Key Metrics Changes - Funded loans saw a small decrease year-over-year, with expectations for positive loan growth in 2025 projected between low to mid-single digits [6] - Criticized loans declined by nearly 20% year-over-year, with total criticized loans at $36.56 million [12][13] - Operating non-interest income increased by $130,000 to $1.45 million, driven by strong performance in government-guaranteed loans [26] Market Data and Key Metrics Changes - The company experienced a 20% reduction in reliance on wholesale funding over the last year [14] - The loan-to-deposit ratio improved from 104% to 89% over the past two years [19] - The company has seen strong deposit growth, allowing for a reduction in brokered CDs and public funds [22] Company Strategy and Development Direction - The company is focused on disciplined loan growth and remixing its deposit portfolio to improve profitability [28] - Management aims to achieve a return on average assets (ROA) exceeding 1% by 2025, driven by loan growth and deposit repricing [5][33] - The company is engaging with a consulting firm to improve operational efficiency and leverage in various business areas [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the credit risk profile improving and expects net charge-offs to remain around 20 basis points for 2025 [66] - The company anticipates that 2025 will produce positive operating leverage, driven by improved NIM and stronger fee revenues [29] - Management noted that the pipelines for loan production are strong, particularly in Texas, and expects to maintain robust activity in real estate [38][39] Other Important Information - The Chief Financial Officer, Terry Earley, will retire in June 2025 but will continue to assist in a consulting role [80] - The new CFO will be Will Hofford, who has been with the company for thirteen years [81] Q&A Session Summary Question: What are the expectations for achieving a 1% ROA in 2025? - Management believes that loan growth and deposit repricing will be the main drivers to achieve the 1% ROA target in 2025 [33] Question: What is the outlook for loan growth given the current payoffs? - Management indicated that while payoffs are expected to continue, the production side of the business is strong, and they are confident in achieving necessary loan growth [39][41] Question: Can you provide details on the dynamics of non-interest bearing deposits? - Management noted that seasonal fluctuations and intentional exits from expensive deposit relationships contributed to the decline, but they expect non-interest bearing deposits to stabilize between 21% and 23% [60] Question: What is the outlook for government guaranteed loans in 2025? - Management is optimistic about the government guaranteed loan business, citing strong pipelines and production [62][75] Question: What is the expected net charge-off ratio for 2025? - Management expects the net charge-off ratio to remain around 20 basis points for 2025, with confidence in continued credit improvement [66]