Veritex Holdings, Inc. Reports Record First Quarter Financial Results
2018 First Quarter Highlights
- Net income available for common stockholders for the quarter ended March 31, 2018 was
$10.4 million , or$0.42 diluted EPS, compared to$3.1 million , or$0.20 diluted EPS, for the quarter ended March 31, 2017. - Core (non-GAAP) net income available for common stockholders totaled
$9.0 million , or$0.37 core diluted EPS, for the quarter ended March 31, 2018, compared to$3.1 million , or$0.20 core diluted EPS, for the quarter ended March 31, 2017. - Total loans, excluding
$26.3 million in loans that were sold in connection with the sale of two branch locations discussed below, increased$82.6 million , or 14.8% annualized, to 2.3 billion compared to the quarter endedDecember 31, 2017 . - Total deposits, excluding
$64.3 million in deposits that were sold in connection with the sale of two branch locations discussed below, increased$215.2 million , or 37.6% annualized, to$2.5 billion compared to the quarter endedDecember 31, 2017 . - We completed the previously announced sale of certain assets and liabilities associated with two branches in the
Austin metropolitan market toHorizon Bank , SSB resulting in a$355 thousand gain on sale reported in other non-interest income. The completion of the sale results in us exiting theAustin metropolitan market.
Net income for the quarter ended
The measurement period for
As part of how we measure our results, we use certain non-GAAP financial measures to ascertain performance. These non-GAAP financial measures are reconciled in the section labeled “Reconciliation of Non-GAAP Financial Measures” at the end of this press release.
Result of Operations for the Three Months Ended
Net Interest Income
For the three months ended
Net interest income before provision for loan losses increased by
Noninterest Income
Noninterest income for the three months ended
Compared to the three months ended
Noninterest Expense
Noninterest expense was
Compared to the three months ended
Financial Condition
Total loans were
Total deposits were
Asset Quality
Our allowance for loan losses as a percentage of loans was 0.58% and 0.57% of total loans at March 31, 2018 and December 31, 2017, respectively. The allowance for loan losses as a percentage of total loans was determined by the qualitative factors around the nature, volume and mix of the loan portfolio. The increase in the allowance for loan loss as a percentage of loans was attributable to continued execution and success of our organic growth strategy. We recorded a provision for loan losses of
Nonperforming assets totaled
Non-GAAP Financial Measures
The Company’s management uses certain non-GAAP (generally accepted accounting principles) financial measures to evaluate its performance. Specifically, the Company reviews and reports core net interest income, core non-interest expense, core net income from operations, core net income, core net income available to common stockholders, core diluted earnings per share, core efficiency ratio, core net interest margin, core return on average assets, tangible book value per common share and the tangible common equity to tangible assets ratio. The Company has included in this release information related to these non-GAAP financial measures for the applicable periods presented. Please refer to “Reconciliation of Non-GAAP Financial Measures” at the end of this release for a reconciliation of these non-GAAP financial measures.
Business Combinations Measurement Period
The measurement period for the Company to determine the fair values of acquired identifiable assets and assumed liabilities for Liberty will end at the earlier of (i) twelve months from the date of the acquisition or (ii) as soon as the Company receives the information it was seeking about facts and circumstances that existed as of the acquisition date or learns that more information is not obtainable. Provisional estimates for loans, goodwill, intangible assets, accrued expenses, deposits and deferred taxes have been recorded for the Liberty acquisition as independent valuations have not been finalized. Changes to provisional estimates could potentially have an impact on the re-measurement of our deferred taxes.
Conference Call
The Company will also host an investor conference call to review the results on
The call and corresponding presentation slides will be webcast live on the home page of the Company's website, www.veritexbank.com. An audio replay will be available one hour after the conclusion of the call at (855) 859-2056, Conference #5459708. This replay, as well as the webcast, will be available until
About
Headquartered in
This release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information regarding Veritex’s future financial performance, business and growth strategy, projected plans and objectives, and related transactions, integration of the acquired businesses, ability to recognize anticipated operational efficiencies, and other projections based on macroeconomic and industry trends, which are inherently unreliable due to the multiple factors that impact economic trends, and any such variations may be material. Such forward-looking statements are based on various facts and derived utilizing important assumptions, current expectations, estimates and projections about
VERITEX HOLDINGS, INC. AND SUBSIDIARY | ||||||||||||||||||||
Consolidated Financial Highlights - (Unaudited) | ||||||||||||||||||||
(In thousands, except percentages) | ||||||||||||||||||||
At and For the Three Months Ended | ||||||||||||||||||||
March 31, 2018 |
December 31, 2017 |
September 30, 2017 |
June 30, 2017 |
March 31, 2017 |
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Selected Financial Data: | ||||||||||||||||||||
Net income | $ | 10,388 | $ | 3,257 | $ | 5,182 | $ | 3,615 | $ | 3,098 | ||||||||||
Net income available to common stockholders | 10,388 | 3,257 | 5,140 | 3,615 | 3,098 | |||||||||||||||
Total assets | 3,063,319 | 2,945,583 | 2,494,861 | 1,508,589 | 1,522,015 | |||||||||||||||
Total loans(1) | 2,316,089 | 2,259,831 | 1,907,509 | 1,122,468 | 1,020,970 | |||||||||||||||
Provision for loan losses | 678 | 2,529 | 752 | 943 | 890 | |||||||||||||||
Allowance for loan losses | 13,401 | 12,808 | 10,492 | 9,740 | 8,816 | |||||||||||||||
Noninterest-bearing deposits(2) | 597,236 | 652,218 | 495,627 | 337,057 | 338,226 | |||||||||||||||
Total deposits(2) | 2,493,794 | 2,342,912 | 1,985,658 | 1,211,107 | 1,221,696 | |||||||||||||||
Total stockholders’ equity | 497,433 | 488,929 | 445,929 | 247,602 | 242,725 | |||||||||||||||
Summary Performance Ratios: | ||||||||||||||||||||
Return on average assets(3) | 1.41 | % | 0.48 | % | 0.94 | % | 0.97 | % | 0.83 | % | ||||||||||
Return on average equity(3) | 8.55 | 2.78 | 5.44 | 5.89 | 5.20 | |||||||||||||||
Net interest margin(4) | 4.46 | 4.24 | 3.78 | 3.53 | 3.21 | |||||||||||||||
Efficiency ratio(5) | 54.28 | 53.60 | 59.33 | 55.03 | 58.26 | |||||||||||||||
Noninterest expense to average assets(3) | 2.35 | 2.22 | 2.26 | 2.08 | 1.99 | |||||||||||||||
Summary Credit Quality Data: | ||||||||||||||||||||
Nonaccrual loans | $ | 3,438 | $ | 465 | $ | 1,856 | $ | 1,514 | $ | 1,686 | ||||||||||
Accruing loans 90 or more days past due(6) | 374 | 18 | 54 | 15 | 212 | |||||||||||||||
Other real estate owned | 10 | 449 | 738 | 493 | 998 | |||||||||||||||
Nonperforming assets to total assets | 0.12 | % | 0.03 | % | 0.11 | % | 0.13 | % | 0.19 | % | ||||||||||
Nonperforming loans to total loans | 0.16 | 0.02 | 0.10 | 0.14 | 0.19 | |||||||||||||||
Allowance for loan losses to total loans | 0.58 | 0.57 | 0.55 | 0.87 | 0.86 | |||||||||||||||
Net charge-offs to average loans outstanding | — | 0.01 | — | — | 0.06 | |||||||||||||||
Capital Ratios: | ||||||||||||||||||||
Total stockholders’ equity to total assets | 16.24 | % | 16.60 | % | 17.87 | % | 16.41 | % | 15.95 | % | ||||||||||
Tangible common equity to tangible assets | 11.01 | 11.12 | 12.76 | 14.77 | 14.31 | |||||||||||||||
Tier 1 capital to average assets | 11.84 | 12.92 | 15.26 | 15.09 | 14.65 | |||||||||||||||
Tier 1 capital to risk-weighted assets | 12.53 | 12.48 | 14.17 | 18.17 | 19.94 | |||||||||||||||
Common equity tier 1 (to risk weighted assets) | 12.09 | 12.03 | 13.65 | 17.92 | 19.66 | |||||||||||||||
Total capital to risk-weighted assets | 13.22 | 13.16 | 14.87 | 19.37 | 21.20 | |||||||||||||||
(1) Total loans does not include loans held for sale and deferred fees. Loans held for sale were $893 thousand at March 31, 2018, $841 thousand at December 31, 2017, $2.2 million at September 30, 2017, $4.1 million at June 30, 2017 and $1.9 million at March 31, 2017. Deferred fees were $24 thousand at March 31, 2018, $28 thousand at December 31, 2017, $28 thousand at September 30, 2017, $40 thousand at June 30, 2017, and $48 thousand at March 31, 2017. Total loans include branch assets held for sale of $26.3 million at December 31, 2017. | ||||||||||||||||||||
(2) Total noninterest-bearing deposits and total deposits at December 31, 2017 include branch liabilities held for sale of $39.4 million and $64.3 million, respectively. | ||||||||||||||||||||
(3) We calculate our average assets and average equity for a period by dividing the sum of our total assets or total stockholders’ equity, as the case may be, at the close of business on each day in the relevant period, by the number of days in the period. We have calculated our return on average assets and return on average equity for a period by dividing net income for that period by our average assets and average equity, as the case may be, for that period. | ||||||||||||||||||||
(4) Net interest margin represents net interest income, annualized on a fully tax equivalent basis, divided by average interest-earning assets. | ||||||||||||||||||||
(5) Efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income. | ||||||||||||||||||||
(6) Accruing loans 90 or more days past due excludes $2.0 million, $3.3 million and $3.3 million of PCI loans as of March 31, 2018, December 31, 2017 and September 30, 2017. No PCI loans were considered non-performing loans as of March 31, 2018, December 31, 2017 and September 30, 2017. |
VERITEX HOLDINGS, INC. AND SUBSIDIARY | ||||||||||||||||||||
Condensed Consolidated Balance Sheets - (Unaudited) | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
March 31, 2018 |
December 31, 2017 |
September 30, 2017 |
June 30, 2017 |
March 31, 2017 |
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ASSETS | ||||||||||||||||||||
Cash and due from banks | $ | 26,861 | $ | 38,243 | $ | 21,879 | $ | 28,687 | $ | 23,021 | ||||||||||
Interest bearing deposits in other banks | 168,333 | 110,801 | 129,497 | 144,459 | 262,714 | |||||||||||||||
Total cash and cash equivalents | 195,194 | 149,044 | 151,376 | 173,146 | 285,735 | |||||||||||||||
Investment securities | 243,164 | 228,117 | 204,788 | 134,708 | 138,698 | |||||||||||||||
Loans held for sale | 893 | 841 | 2,179 | 4,118 | 1,925 | |||||||||||||||
Loans, net | 2,302,664 | 2,220,682 | 1,896,989 | 1,112,688 | 1,012,106 | |||||||||||||||
Accrued interest receivable | 7,127 | 7,676 | 6,387 | 3,333 | 2,845 | |||||||||||||||
Bank-owned life insurance | 21,620 | 21,476 | 20,517 | 20,369 | 20,224 | |||||||||||||||
Bank premises, furniture and equipment, net | 76,045 | 75,251 | 40,129 | 17,978 | 17,521 | |||||||||||||||
Non-marketable equity securities | 20,806 | 13,732 | 10,283 | 7,407 | 7,375 | |||||||||||||||
Investment in unconsolidated subsidiary | 352 | 352 | 352 | 93 | 93 | |||||||||||||||
Other real estate owned | 10 | 449 | 738 | 493 | 998 | |||||||||||||||
Intangible assets, net | 18,372 | 20,441 | 10,531 | 2,171 | 2,161 | |||||||||||||||
Goodwill | 161,685 | 159,452 | 135,832 | 26,865 | 26,865 | |||||||||||||||
Other assets | 13,634 | 14,518 | 14,760 | 5,220 | 5,469 | |||||||||||||||
Branch assets held for sale | 1,753 | 33,552 | — | — | — | |||||||||||||||
Total assets | $ | 3,063,319 | $ | 2,945,583 | $ | 2,494,861 | $ | 1,508,589 | $ | 1,522,015 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest-bearing | $ | 597,236 | $ | 612,830 | $ | 495,627 | $ | 337,057 | $ | 338,226 | ||||||||||
Interest-bearing | 1,896,558 | 1,665,800 | 1,490,031 | 874,050 | 883,470 | |||||||||||||||
Total deposits | 2,493,794 | 2,278,630 | 1,985,658 | 1,211,107 | 1,221,696 | |||||||||||||||
Accounts payable and accrued expenses | 3,862 | 5,098 | 4,017 | 2,574 | 1,631 | |||||||||||||||
Accrued interest payable and other liabilities | 3,412 | 5,446 | 4,368 | 1,032 | 9,655 | |||||||||||||||
Advances from Federal Home Loan Bank | 48,128 | 71,164 | 38,200 | 38,235 | 38,271 | |||||||||||||||
Junior subordinated debentures | 11,702 | 11,702 | 11,702 | 3,093 | 3,093 | |||||||||||||||
Subordinated notes | 4,988 | 4,987 | 4,987 | 4,946 | 4,944 | |||||||||||||||
Other borrowings | — | 15,000 | — | — | — | |||||||||||||||
Branch liabilities held for sale | — | 64,627 | — | — | — | |||||||||||||||
Total liabilities | 2,565,886 | 2,456,654 | 2,048,932 | 1,260,987 | 1,279,290 | |||||||||||||||
Commitments and contingencies | ||||||||||||||||||||
Stockholders’ equity: | ||||||||||||||||||||
Common stock | 241 | 241 | 227 | 152 | 152 | |||||||||||||||
Additional paid-in capital | 445,964 | 445,517 | 404,900 | 211,901 | 211,512 | |||||||||||||||
Retained earnings | 55,015 | 44,627 | 41,143 | 36,003 | 32,388 | |||||||||||||||
Unallocated Employee Stock Ownership Plan shares | (106 | ) | (106 | ) | (209 | ) | (209 | ) | (209 | ) | ||||||||||
Accumulated other comprehensive loss | (3,611 | ) | (1,280 | ) | (62 | ) | (175 | ) | (1,048 | ) | ||||||||||
Treasury stock | (70 | ) | (70 | ) | (70 | ) | (70 | ) | (70 | ) | ||||||||||
Total stockholders’ equity | 497,433 | 488,929 | 445,929 | 247,602 | 242,725 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 3,063,319 | $ | 2,945,583 | $ | 2,494,861 | $ | 1,508,589 | $ | 1,522,015 |
VERITEX HOLDINGS, INC. AND SUBSIDIARY | ||||||||||||||||||||
Condensed Consolidated Statements of Income - (Unaudited) | ||||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
March 31, 2018 |
December 31, 2017 |
September 30, 2017 |
June 30, 2017 |
March 31, 2017 |
||||||||||||||||
Interest income: | ||||||||||||||||||||
Interest and fees on loans | $ | 32,067 | $ | 28,182 | $ | 20,706 | $ | 13,024 | $ | 11,883 | ||||||||||
Interest on investment securities | 1,328 | 1,211 | 941 | 735 | 575 | |||||||||||||||
Interest on deposits in other banks | 687 | 500 | 629 | 548 | 610 | |||||||||||||||
Interest on other | 5 | 4 | 3 | — | 1 | |||||||||||||||
Total interest income | 34,087 | 29,897 | 22,279 | 14,307 | 13,069 | |||||||||||||||
Interest expense: | ||||||||||||||||||||
Interest on deposit accounts | 4,293 | 3,677 | 2,812 | 1,742 | 1,647 | |||||||||||||||
Interest on borrowings | 692 | 470 | 338 | 189 | 169 | |||||||||||||||
Total interest expense | 4,985 | 4,147 | 3,150 | 1,931 | 1,816 | |||||||||||||||
Net interest income | 29,102 | 25,750 | 19,129 | 12,376 | 11,253 | |||||||||||||||
Provision for loan losses | 678 | 2,529 | 752 | 943 | 890 | |||||||||||||||
Net interest income after provision for loan losses | 28,424 | 23,221 | 18,377 | 11,433 | 10,363 | |||||||||||||||
Noninterest income: | ||||||||||||||||||||
Service charges and fees on deposit accounts | 933 | 769 | 669 | 555 | 509 | |||||||||||||||
Gain on sales of investment securities | 8 | 17 | 205 | — | — | |||||||||||||||
Gain on sales of loans and other assets owned | 581 | 882 | 705 | 807 | 747 | |||||||||||||||
Bank-owned life insurance | 189 | 192 | 188 | 186 | 187 | |||||||||||||||
Other | 1,070 | 438 | 210 | 218 | 92 | |||||||||||||||
Total noninterest income | 2,781 | 2,298 | 1,977 | 1,766 | 1,535 | |||||||||||||||
Noninterest expense: | ||||||||||||||||||||
Salaries and employee benefits | 7,930 | 7,357 | 5,921 | 3,642 | 3,908 | |||||||||||||||
Occupancy and equipment | 3,234 | 1,996 | 1,596 | 1,015 | 1,011 | |||||||||||||||
Professional fees | 1,802 | 1,713 | 1,973 | 1,188 | 798 | |||||||||||||||
Data processing and software expense | 828 | 766 | 719 | 372 | 360 | |||||||||||||||
FDIC assessment fees | 302 | 116 | 410 | 393 | 258 | |||||||||||||||
Marketing | 461 | 388 | 436 | 225 | 244 | |||||||||||||||
Other assets owned expenses and write-downs | 172 | 73 | 71 | 13 | 25 | |||||||||||||||
Amortization of intangibles | 978 | 551 | 223 | 95 | 95 | |||||||||||||||
Telephone and communications | 426 | 282 | 230 | 106 | 102 | |||||||||||||||
Other | 1,173 | 1,793 | 943 | 733 | 649 | |||||||||||||||
Total noninterest expense | 17,306 | 15,035 | 12,522 | 7,782 | 7,450 | |||||||||||||||
Net income from operations | 13,899 | 10,484 | 7,832 | 5,417 | 4,448 | |||||||||||||||
Income tax expense | 3,511 | 7,227 | 2,650 | 1,802 | 1,350 | |||||||||||||||
Net income | $ | 10,388 | $ | 3,257 | $ | 5,182 | $ | 3,615 | $ | 3,098 | ||||||||||
Preferred stock dividends | $ | — | $ | — | $ | 42 | $ | — | $ | — | ||||||||||
Net income available to common stockholders | $ | 10,388 | $ | 3,257 | $ | 5,140 | $ | 3,615 | $ | 3,098 | ||||||||||
Basic earnings per share | $ | 0.43 | $ | 0.14 | $ | 0.26 | $ | 0.24 | $ | 0.20 | ||||||||||
Diluted earnings per share | $ | 0.42 | $ | 0.14 | $ | 0.25 | $ | 0.23 | $ | 0.20 | ||||||||||
Weighted average basic shares outstanding | 24,120 | 23,124 | 19,976 | 15,211 | 15,200 | |||||||||||||||
Weighted average diluted shares outstanding | 24,539 | 23,524 | 20,392 | 15,637 | 15,632 |
VERITEX HOLDINGS, INC. AND SUBSIDIARY | |||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures - (Unaudited) | |||||||||||||||||||||
(In thousands except per share data and percentages) | |||||||||||||||||||||
The following table reconciles, at the dates set forth below, GAAP net income available to common stockholders to core (non-GAAP) net income available to common stockholders, core basic and diluted earnings per share, core efficiency ratio, core net interest margin and core return on average assets: | |||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||
March 31, 2018 |
December 31, 2017 |
September 30, 2017 |
June 30, 2017 |
March 31, 2017 |
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Net interest income (as reported) | $ | 29,102 | $ | 25,750 | $ | 19,129 | $ | 12,376 | $ | 11,253 | |||||||||||
Adjustment: | |||||||||||||||||||||
Income recognized on acquired loans | 4,009 | $ | 2,955 | $ | 637 | $ | 135 | $ | 55 | ||||||||||||
Core net interest income | 25,093 | 22,795 | 18,492 | 12,241 | 11,198 | ||||||||||||||||
Provision for loan losses (as reported) | 678 | 2,529 | 752 | 943 | 890 | ||||||||||||||||
Noninterest income (as reported) | 2,781 | 2,298 | 1,977 | 1,766 | 1,535 | ||||||||||||||||
Adjustment: | |||||||||||||||||||||
Gain on sale of disposed branch assets | 388 | — | — | — | — | ||||||||||||||||
Core noninterest income | 2,393 | 2,298 | 1,977 | 1,766 | 1,535 | ||||||||||||||||
Noninterest expense (as reported) | 17,306 | 15,035 | 12,522 | 7,782 | 7,450 | ||||||||||||||||
Adjustment: | |||||||||||||||||||||
Lease exit costs, net(1) | (1,071 | ) | — | — | — | — | |||||||||||||||
Branch closure expenses | (172 | ) | — | — | — | — | |||||||||||||||
M&A and other related one-time expenses | (335 | ) | (1,018 | ) | (1,391 | ) | (193 | ) | (89 | ) | |||||||||||
Core noninterest expense | 15,728 | 14,017 | 11,131 | 7,589 | 7,361 | ||||||||||||||||
Core net income from operations | 11,080 | 8,547 | 8,586 | 5,475 | 4,482 | ||||||||||||||||
Income tax expense (as reported) | 3,511 | 7,227 | 2,650 | 1,802 | 1,350 | ||||||||||||||||
Adjustments: | |||||||||||||||||||||
Tax impact of adjustments | (579 | ) | (678 | ) | 264 | 20 | 12 | ||||||||||||||
Tax Act re-measurement | (820 | ) | (3,051 | ) | — | — | — | ||||||||||||||
Other M&A discrete tax items | — | (398 | ) | — | — | — | |||||||||||||||
Core income tax expense | $ | 2,112 | $ | 3,100 | $ | 2,914 | $ | 1,822 | $ | 1,362 | |||||||||||
Net income (as reported) | $ | 10,388 | $ | 3,257 | $ | 5,182 | $ | 3,615 | $ | 3,098 | |||||||||||
Core net income | $ | 8,968 | $ | 5,447 | $ | 5,672 | $ | 3,653 | $ | 3,120 | |||||||||||
Preferred stock dividends (as reported) | $ | — | $ | — | — | $ | 42 | $ | — | $ | — | ||||||||||
Core net income available to common stockholders | $ | 8,968 | $ | 5,447 | $ | 5,630 | $ | 3,653 | $ | 3,120 | |||||||||||
Weighted average diluted shares outstanding | 24,539 | 23,524 | 20,392 | 15,637 | 15,632 | ||||||||||||||||
Diluted earnings per share (as reported) | 0.42 | 0.14 | 0.25 | 0.23 | 0.20 | ||||||||||||||||
Core diluted earnings per share(2) | 0.37 | 0.23 | 0.28 | 0.23 | 0.20 | ||||||||||||||||
Efficiency Ratio | |||||||||||||||||||||
Efficiency ratio (as reported) | 54.28 | % | 53.60 | % | 59.33 | % | 55.03 | % | 58.26 | % | |||||||||||
Core efficiency ratio(3) | 57.22 | % | 55.86 | % | 54.38 | % | 54.18 | % | 57.81 | % | |||||||||||
Net Interest Margin | |||||||||||||||||||||
Net interest margin (as reported) | 4.46 | % | 4.24 | % | 3.78 | % | 3.53 | % | 3.21 | % | |||||||||||
Core net interest margin(4) | 3.84 | % | 3.75 | % | 3.66 | % | 3.49 | % | 3.19 | % | |||||||||||
Return on average assets | |||||||||||||||||||||
Return on average assets (as reported) | 1.41 | % | 0.48 | % | 0.94 | % | 0.97 | % | 0.83 | % | |||||||||||
Core return on average assets(5) | 1.22 | % | 0.80 | % | 1.02 | % | 0.98 | % | 0.83 | % | |||||||||||
(1) Lease exit costs, net includes a $1.5 million consent fee and $240 thousand in professional services paid in January 2018 to separately assign and sublease two of our branch leases that the Company ceased using in 2017 offset by the reversal of the corresponding assigned lease cease-use liability totaling $669 thousand. | |||||||||||||||||||||
(2) Core diluted earnings per share is defined as core net income available to common stockholders divided by weighted average diluted shares outstanding. Excluded from net income available to common stockholders are income recognized on acquired loans, lease exit costs, net, branch closure expenses, M&A and other related one-time expenses, the tax impact of the adjustments to core net interest income and core noninterest expense, the re-measurement of our deferred tax asset as a result of the Tax Act and the tax impact of other M&A discrete tax items. | |||||||||||||||||||||
(3) We calculate core efficiency ratio as core noninterest expense divided by the sum of core net interest income and core noninterest income. | |||||||||||||||||||||
(4) Core net interest margin is equal to core net interest income divided by average interest-earning assets. | |||||||||||||||||||||
(5) Core return on average assets is equal to core net income divided by average assets |
VERITEX HOLDINGS, INC. AND SUBSIDIARY | ||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures - (Unaudited) | ||||||||||||||||||||
(In thousands except per share data and percentages) | ||||||||||||||||||||
The following table reconciles, at the dates set forth below, total stockholders’ equity to tangible common equity and total assets to tangible assets and presents our book value per common share to our tangible book value per share: | ||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
March 31, 2018 |
December 31, 2017 |
September 30, 2017 |
June 30, 2017 |
March 31, 2017 |
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Tangible Common Equity | ||||||||||||||||||||
Total stockholders’ equity | $ | 497,433 | $ | 488,929 | $ | 445,929 | $ | 247,602 | $ | 242,725 | ||||||||||
Adjustments: | ||||||||||||||||||||
Goodwill | (161,685 | ) | (159,452 | ) | (135,832 | ) | (26,865 | ) | (26,865 | ) | ||||||||||
Intangible assets(1) | (18,372 | ) | (22,165 | ) | (10,531 | ) | (2,171 | ) | (2,161 | ) | ||||||||||
Total tangible common equity | $ | 317,376 | $ | 307,312 | $ | 299,566 | $ | 218,566 | $ | 213,699 | ||||||||||
Tangible Assets | ||||||||||||||||||||
Total assets | $ | 3,063,319 | $ | 2,945,583 | $ | 2,494,861 | $ | 1,508,589 | $ | 1,522,015 | ||||||||||
Adjustments: | ||||||||||||||||||||
Goodwill | (161,685 | ) | (159,452 | ) | (135,832 | ) | (26,865 | ) | (26,865 | ) | ||||||||||
Intangible assets(1) | (18,372 | ) | (22,165 | ) | (10,531 | ) | (2,171 | ) | (2,161 | ) | ||||||||||
Total tangible assets | $ | 2,883,262 | $ | 2,763,966 | $ | 2,348,498 | $ | 1,479,553 | $ | 1,492,989 | ||||||||||
Tangible Common Equity to Tangible Assets(2) | 11.01 | % | 11.12 | % | 12.76 | % | 14.77 | % | 14.31 | % | ||||||||||
Common shares outstanding | 24,149 | 24,110 | 22,644 | 15,233 | 15,229 | |||||||||||||||
Book value per common share(3) | $ | 20.60 | $ | 20.28 | $ | 19.69 | $ | 16.25 | $ | 15.94 | ||||||||||
Tangible book value per common share(4) | $ | 13.14 | $ | 12.75 | $ | 13.23 | $ | 14.35 | $ | 14.03 | ||||||||||
(1) Intangible assets as of December 31, 2017 include branch intangible assets held for sale of $1.7 million. | ||||||||||||||||||||
(2) We calculate tangible common equity as total stockholders’ equity less goodwill and other intangible assets, net of accumulated amortization, and we calculate tangible assets as total assets less goodwill and other intangible assets, net of accumulated amortization. | ||||||||||||||||||||
(3) We calculate book value per common share as total stockholders’ equity at the end of the relevant period divided by the outstanding number of shares of our common stock at the end of the relevant period. | ||||||||||||||||||||
(4) We calculate tangible book value per common share as total tangible common equity, divided by the outstanding number of shares of our common stock at the end of the relevant period. |
VERITEX HOLDINGS, INC. AND SUBSIDIARY | |||||||||||||||||||||||||||||||||
Net Interest Margin - (Unaudited) | |||||||||||||||||||||||||||||||||
(In thousands except percentages) | |||||||||||||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||||||||||
March 31, 2018 | December 31, 2017 | March 31, 2017 | |||||||||||||||||||||||||||||||
Average Outstanding Balance |
Interest Earned/ Interest Paid |
Average Yield/ Rate |
Average Outstanding Balance |
Interest Earned/ Interest Paid |
Average Yield/ Rate |
Average Outstanding Balance |
Interest Earned/ Interest Paid |
Average Yield/ Rate |
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Assets | |||||||||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||||
Total loans(1)(4) | $ | 2,261,133 | $ | 32,067 | 5.75 | % | $ | 2,030,587 | $ | 28,182 | 5.51 | % | $ | 1,007,622 | $ | 11,883 | 4.78 | % | |||||||||||||||
Securities available for sale | 222,026 | 1,328 | 2.43 | 233,244 | 1,211 | 2.06 | 119,226 | 575 | 1.96 | ||||||||||||||||||||||||
Interest-bearing deposits in other banks | 163,996 | 687 | 1.70 | 145,099 | 500 | 1.37 | 295,637 | 610 | 0.84 | ||||||||||||||||||||||||
Investment in unconsolidated subsidiary | 327 | 5 | 6.20 | 352 | 4 | 4.51 | 93 | 1 | 4.36 | ||||||||||||||||||||||||
Total interest-earning assets | 2,647,482 | 34,087 | 5.22 | 2,409,282 | 29,897 | 4.92 | 1,422,578 | 13,069 | 3.73 | ||||||||||||||||||||||||
Allowance for loan losses | (13,133 | ) | (10,658 | ) | (8,558 | ) | |||||||||||||||||||||||||||
Noninterest-earning assets(4) | 355,625 | 292,664 | 103,692 | ||||||||||||||||||||||||||||||
Total assets | $ | 2,989,974 | $ | 2,691,288 | $ | 1,517,712 | |||||||||||||||||||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||
Interest-bearing deposits(4) | $ | 1,745,195 | $ | 4,293 | 1.00 | % | $ | 1,569,950 | $ | 3,677 | 0.93 | % | $ | 858,420 | $ | 1,647 | 0.78 | % | |||||||||||||||
Advances from FHLB | 117,507 | 460 | 1.59 | 74,589 | 213 | 1.13 | 38,293 | 70 | 0.74 | ||||||||||||||||||||||||
Other borrowings | 16,926 | 232 | 5.56 | 25,398 | 257 | 4.01 | 8,064 | 99 | 4.98 | ||||||||||||||||||||||||
Total interest-bearing liabilities | 1,879,628 | 4,985 | 1.08 | 1,669,937 | 4,147 | 0.98 | 904,777 | 1,816 | 0.81 | ||||||||||||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||||||||||||||
Noninterest-bearing deposits(4) | 600,215 | 542,918 | 368,117 | ||||||||||||||||||||||||||||||
Other liabilities(4) | 17,262 | 13,819 | 3,209 | ||||||||||||||||||||||||||||||
Total noninterest-bearing liabilities | 617,477 | 556,737 | 371,326 | ||||||||||||||||||||||||||||||
Stockholders’ equity | 492,869 | 464,614 | 241,609 | ||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,989,974 | $ | 2,691,288 | $ | 1,517,712 | |||||||||||||||||||||||||||
Net interest rate spread(2) | 4.14 | % | 3.94 | % | 2.92 | % | |||||||||||||||||||||||||||
Net interest income | $ | 29,102 | $ | 25,750 | $ | 11,253 | |||||||||||||||||||||||||||
Net interest margin(3) | 4.46 | % | 4.24 | % | 3.21 | % | |||||||||||||||||||||||||||
(1) Includes average outstanding balances of loans held for sale of $1,336, $3,155 and $2,094 for the three months ended March 31, 2018, December 31, 2017, and March 31, 2017, respectively. | |||||||||||||||||||||||||||||||||
(2) Net interest rate spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities. | |||||||||||||||||||||||||||||||||
(3) Net interest margin is equal to net interest income divided by average interest-earning assets. | |||||||||||||||||||||||||||||||||
(4) Includes average outstanding balances of branch assets and liabilities held for sale in total loans, noninterest-bearing assets, interest-bearing deposits, noninterest-bearing deposits and other liabilities for the three months ended December 31, 2017. |
Media Contact:LaVonda Renfro 972-349-6200 lrenfro@veritexbank.com Investor Relations:Susan Caudle 972-349-6132 scaudle@veritexbank.com