Veritex (US:VBTX)2025-04-22 20:49Financial 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]