Veritex (US:VBTX)2024-11-08 21:25Financial Performance - Total interest and dividend income for the three months ended September 30, 2024, was $196,663,000, an increase of 5.8% from $187,115,000 in 2023[8] - Net interest income after provision for credit losses was $96,062,000 for the three months ended September 30, 2024, compared to $91,643,000 in 2023, reflecting a 4.4% increase[8] - Noninterest income totaled $13,106,000 for the three months ended September 30, 2024, up 35.5% from $9,674,000 in 2023[8] - Net income for the three months ended September 30, 2024, was $31,001,000, a decrease of 5% from $32,621,000 in 2023[10] - Basic EPS for the three months ended September 30, 2024, was $0.57, down from $0.60 in 2023[8] - The company reported a comprehensive income of $67,384,000 for the three months ended September 30, 2024, compared to $7,975,000 in 2023[10] - Net income for the nine months ended September 30, 2024, was $82,359,000, compared to $104,762,000 for the same period in 2023, reflecting a decrease of approximately 21.3%[18] Expenses and Provisions - Total noninterest expense increased to $70,100,000 for the three months ended September 30, 2024, from $59,414,000 in 2023, representing an 18% rise[8] - The provision for credit losses was $4,000,000 for the three months ended September 30, 2024, significantly lower than $8,627,000 in 2023[8] - The company experienced a provision for credit losses of $18,209,000 for the nine months ended September 30, 2024, down from $32,471,000 in 2023, indicating a decrease of approximately 44.0%[18] Assets and Equity - Total assets increased to $1,608,014,000 as of September 30, 2024, compared to $1,548,616,000 at the end of June 30, 2024[12] - Total stockholders' equity as of September 30, 2024, increased to $1,608,014,000 from $1,531,323,000 at December 31, 2023, representing a growth of about 5.0%[15] - Cash and cash equivalents at the end of the period were $1,100,790,000, up from $713,408,000 at the end of September 2023, indicating an increase of approximately 54.2%[18] Loan Portfolio and Credit Quality - The total loan held for investment (LHI) net as of September 30, 2024, was $9,542,063, an increase from $9,474,524 as of December 31, 2023[50] - Nonaccrual loans totaled $55,404 as of September 30, 2024, compared to $92,848 as of December 31, 2023, indicating a decrease in nonaccrual status[60] - Total loans 90 days past due and still accruing interest amounted to $65,273 million as of September 30, 2024, representing an increase from $39,357 million[62] - The company has modified loans totaling an amortized cost basis of $61,266 million to borrowers experiencing financial difficulty, with 2.4% of the NOOCRE loan class affected[68] Stock and Dividends - The company paid dividends totaling $32,680,000 in the nine months ended September 30, 2024, compared to $32,548,000 in the same period of 2023, reflecting a marginal increase[18] - Dividends paid by the Company during the three months ended September 30, 2024, amounted to $10,881, or $0.20 per outstanding share[154] Interest Rate Sensitivity - The company estimates that for a 100 bps shift in interest rates, net income at risk should not decline by more than 5.0% for the subsequent one-year period[294] - A 300 bps increase in interest rates is projected to result in a 10.27% increase in net interest income as of September 30, 2024[296] - A 200 bps increase in interest rates is expected to yield a 6.98% increase in net interest income as of September 30, 2024[296] - A 100 bps increase in interest rates is anticipated to lead to a 3.53% increase in net interest income as of September 30, 2024[296] Capital Ratios - The Company had total capital of $1,570,044, representing a capital ratio of 13.91% as of September 30, 2024, exceeding the required minimum of 8.0%[151] - The Bank's Tier 1 capital ratio was 12.33% as of September 30, 2024, above the required minimum of 6.0%[151] - The Company’s capital ratios as of September 30, 2024, exceeded those necessary to be categorized as "well capitalized"[149] Stock Compensation and Equity Plans - The company recognized no stock compensation expense related to the 2010 Incentive Plan for the three and nine months ended September 30, 2024, and 2023[120] - The company granted non-performance-based RSUs and PSUs under the 2022 Equity Plan during the nine months ending September 30, 2024, with annual graded vesting over a three-year period[122] - Stock compensation expense for the 2022 Equity Plan was $2,923,000 for the three months ended September 30, 2024, compared to $2,471,000 for the same period in 2023, representing a 18.2% increase[124]