Veritex Holdings, Inc. Reports Second Quarter 2025 Operating Results and Declares Quarterly Dividend

Core Viewpoint - Veritex Holdings, Inc. reported strong financial results for Q2 2025, with net income increasing to $30.9 million and a quarterly cash dividend of $0.22 per share declared [1][18]. Financial Highlights - Net income for Q2 2025 was $30.906 million, up from $29.070 million in Q1 2025 and $27.202 million in Q2 2024 [2]. - Diluted earnings per share (EPS) increased to $0.56 in Q2 2025 from $0.53 in Q1 2025 and $0.50 in Q2 2024 [2]. - Book value per common share rose to $30.39, compared to $30.08 in Q1 2025 and $28.49 in Q2 2024 [2]. - Return on average assets improved to 1.00% in Q2 2025 from 0.94% in Q1 2025 and 0.87% in Q2 2024 [2]. - Return on average equity was 7.56% in Q2 2025, up from 7.27% in Q1 2025 and 7.10% in Q2 2024 [2]. - Net interest margin (NIM) increased to 3.33% in Q2 2025 from 3.31% in Q1 2025 and 3.29% in Q2 2024 [2]. Net Interest Income - Net interest income before provision for credit losses was $96.3 million in Q2 2025, compared to $95.4 million in Q1 2025, reflecting a 0.9% increase [4]. - The increase in net interest income was primarily due to a $2.8 million rise in interest income on loans and a decrease in interest expense on deposits [4]. - Year-over-year, net interest income remained relatively unchanged, benefiting from decreases in interest expenses on various deposits [5]. Credit Quality - Nonperforming assets (NPAs) to total assets ratio was 0.60% as of June 30, 2025, down from 0.77% in Q1 2025 [6][16]. - The allowance for credit losses (ACL) to total loans held-for-investment ratio was stable at 1.28% [6][17]. - Net charge-offs for Q2 2025 were $1.3 million, with an annualized net charge-off rate of 0.05% [6][16]. Capital and Shareholder Returns - Common equity Tier 1 capital ratio was 11.05% as of June 30, 2025 [6]. - The company repurchased 286,291 shares for $7.1 million during Q2 2025 [6]. - The declared dividend of $0.22 per share will be payable on August 21, 2025 [1][18]. Merger Announcement - On July 14, 2025, Veritex announced a definitive agreement to merge with Huntington Bancshares, expected to close in Q4 2025, pending regulatory approvals [6].