Veritex Holdings, Inc. Reports Second Quarter Financial Results
2018 Second Quarter Highlights
- Net income available for common stockholders for the quarter ended June 30, 2018 was
$10.2 million , or$0.42 diluted EPS, compared to$10.4 million , or$0.42 diluted EPS, for the quarter ended March 31, 2018. - Core net income available for common stockholders1 totaled
$9.9 million , or$0.40 core diluted EPS1, for the quarter ended June 30, 2018, compared to$9.0 million , or$0.37 core diluted EPS, for the quarter ended March 31, 2018. - Total loans increased
$102.8 million , or 4.4%, to$2.4 billion compared to the quarter ended March 31, 2018. - Completed system conversion and integration of
Liberty Bancshares, Inc. (“Liberty”). - Completed the issuance of 50 shares of Company common stock to each employee consistent with our communication to employees upon passing of the Tax Cuts and Jobs Act.
1As part of how we measure our results, we use certain non-GAAP financial measures to evaluate 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 0.61%, 0.58% and 0.87% of total loans at June 30, 2018, March 31, 2018 and June 30, 2017, respectively. The allowance for loan losses as a percentage of total loans for each of the three quarters ended 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 from
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 noninterest income, core noninterest expense, core net income from operations, core income tax expense, 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 common equity, tangible assets, tangible book value per common share and the ratio of tangible common equity to tangible assets. 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.
Conference Call
The Company will 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 #5896174. 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) |
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At and For the Three Months Ended | |||||||||||||||||||
June 30, 2018 |
March 31, 2018 |
December 31, 2017 |
September 30, 2017 |
June 30, 2017 |
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Selected Financial Data: | |||||||||||||||||||
Net income | $ | 10,193 | $ | 10,388 | $ | 3,257 | $ | 5,182 | $ | 3,615 | |||||||||
Net income available to common stockholders | 10,193 | 10,388 | 3,257 | 5,140 | 3,615 | ||||||||||||||
Total assets | 3,133,627 | 3,063,319 | 2,945,583 | 2,494,861 | 1,508,589 | ||||||||||||||
Total loans(1) | 2,418,908 | 2,316,089 | 2,259,831 | 1,907,509 | 1,122,468 | ||||||||||||||
Provision for loan losses | 1,504 | 678 | 2,529 | 752 | 943 | ||||||||||||||
Allowance for loan losses | 14,842 | 13,401 | 12,808 | 10,492 | 9,740 | ||||||||||||||
Noninterest-bearing deposits(2) | 611,315 | 597,236 | 612,830 | 495,627 | 337,057 | ||||||||||||||
Total deposits(2) | 2,490,418 | 2,493,794 | 2,278,630 | 1,985,658 | 1,211,107 | ||||||||||||||
Total stockholders’ equity | 508,441 | 497,433 | 488,929 | 445,929 | 247,602 | ||||||||||||||
Summary Performance Ratios: | |||||||||||||||||||
Return on average assets(3) | 1.34 | % | 1.41 | % | 0.48 | % | 0.94 | % | 0.97 | % | |||||||||
Return on average equity(3) | 8.11 | 8.55 | 2.78 | 5.44 | 5.89 | ||||||||||||||
Net interest margin(4) | 4.07 | 4.46 | 4.24 | 3.78 | 3.53 | ||||||||||||||
Efficiency ratio(5) | 53.51 | 54.28 | 53.60 | 59.33 | 55.03 | ||||||||||||||
Noninterest expense to average assets(3) | 2.12 | 2.35 | 2.22 | 2.26 | 2.08 | ||||||||||||||
Summary Credit Quality Data: | |||||||||||||||||||
Nonaccrual loans | $ | 4,252 | $ | 3,438 | $ | 465 | $ | 1,856 | $ | 1,514 | |||||||||
Accruing loans 90 or more days past due(6) | 613 | 374 | 18 | 54 | 15 | ||||||||||||||
Other real estate owned | — | 10 | 449 | 738 | 493 | ||||||||||||||
Nonperforming assets to total assets | 0.16 | % | 0.12 | % | 0.03 | % | 0.11 | % | 0.13 | % | |||||||||
Nonperforming loans to total loans | 0.20 | 0.16 | 0.02 | 0.10 | 0.14 | ||||||||||||||
Allowance for loan losses to total loans | 0.61 | 0.58 | 0.57 | 0.55 | 0.87 | ||||||||||||||
Net charge-offs to average loans outstanding | — | — | 0.01 | — | — | ||||||||||||||
Capital Ratios: | |||||||||||||||||||
Total stockholders’ equity to total assets | 16.23 | % | 16.24 | % | 16.60 | % | 17.87 | % | 16.41 | % | |||||||||
Tangible common equity to tangible assets | 11.15 | 11.01 | 11.12 | 12.76 | 14.77 | ||||||||||||||
Tier 1 capital to average assets | 12.08 | 11.84 | 12.92 | 15.26 | 15.09 | ||||||||||||||
Tier 1 capital to risk-weighted assets | 12.60 | 12.53 | 12.48 | 14.17 | 18.17 | ||||||||||||||
Common equity tier 1 (to risk weighted assets) | 12.17 | 12.09 | 12.03 | 13.65 | 17.92 | ||||||||||||||
Total capital to risk-weighted assets | 13.31 | 13.22 | 13.16 | 14.87 | 19.37 |
___________________________
- Total loans does not include loans held for sale and deferred fees. Loans held for sale were
$453 thousand at June 30, 2018,$893 thousand at March 31, 2018,$0.8 million at December 31, 2017,$2.2 million at September 30, 2017 and$4.1 million at June 30, 2017. Deferred fees were$22 thousand at June 30, 2018,$24 thousand at March 31, 2018,$28 thousand at December 31, 2017,$28 thousand at September 30, 2017, and$41 thousand at June 30, 2017. Total loans include branch assets held for sale of$26.3 million atDecember 31, 2017 . - 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. - 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.
- Net interest margin represents net interest income, annualized on a fully tax equivalent basis, divided by average interest-earning assets.
- Efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income.
- Accruing loans 90 or more days past due excludes
$2.0 million , and$3.3 million of purchased credit impaired (“PCI”) loans as of March 31, 2018, and December 31, 2017. There were no PCI loans 90 or more days past due accruing as of June 30, 2018,September 30, 2017 andJune 30, 2017 . No PCI loans were considered non-performing loans as of June 30, 2018, March 31, 2018, December 31, 2017, and September 30, 2017.
VERITEX HOLDINGS, INC. AND SUBSIDIARY Condensed Consolidated Balance Sheets - (Unaudited) (In thousands) |
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June 30, 2018 |
March 31, 2018 |
December 31, 2017 |
September 30, 2017 |
June 30, 2017 |
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ASSETS | |||||||||||||||||||
Cash and due from banks | $ | 30,130 | $ | 26,861 | $ | 38,243 | $ | 21,879 | $ | 28,687 | |||||||||
Interest bearing deposits in other banks | 116,610 | 168,333 | 110,801 | 129,497 | 144,459 | ||||||||||||||
Total cash and cash equivalents | 146,740 | 195,194 | 149,044 | 151,376 | 173,146 | ||||||||||||||
Investment securities | 252,187 | 243,164 | 228,117 | 204,788 | 134,708 | ||||||||||||||
Loans held for sale | 453 | 893 | 841 | 2,179 | 4,118 | ||||||||||||||
Loans, net | 2,404,044 | 2,302,664 | 2,220,682 | 1,896,989 | 1,112,688 | ||||||||||||||
Accrued interest receivable | 8,137 | 7,127 | 7,676 | 6,387 | 3,333 | ||||||||||||||
Bank-owned life insurance | 21,767 | 21,620 | 21,476 | 20,517 | 20,369 | ||||||||||||||
Bank premises, furniture and equipment, net | 76,348 | 76,045 | 75,251 | 40,129 | 17,978 | ||||||||||||||
Non-marketable equity securities | 27,086 | 20,806 | 13,732 | 10,283 | 7,407 | ||||||||||||||
Investment in unconsolidated subsidiary | 352 | 352 | 352 | 352 | 93 | ||||||||||||||
Other real estate owned | — | 10 | 449 | 738 | 493 | ||||||||||||||
Intangible assets, net | 17,482 | 18,372 | 20,441 | 10,531 | 2,171 | ||||||||||||||
Goodwill | 161,447 | 161,685 | 159,452 | 135,832 | 26,865 | ||||||||||||||
Other assets | 15,831 | 13,634 | 14,518 | 14,760 | 5,220 | ||||||||||||||
Branch assets held for sale | 1,753 | 1,753 | 33,552 | — | — | ||||||||||||||
Total assets | $ | 3,133,627 | $ | 3,063,319 | $ | 2,945,583 | $ | 2,494,861 | $ | 1,508,589 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Noninterest-bearing | $ | 611,315 | $ | 597,236 | $ | 612,830 | $ | 495,627 | $ | 337,057 | |||||||||
Interest-bearing | 1,879,103 | 1,896,558 | 1,665,800 | 1,490,031 | 874,050 | ||||||||||||||
Total deposits | 2,490,418 | 2,493,794 | 2,278,630 | 1,985,658 | 1,211,107 | ||||||||||||||
Accounts payable and accrued expenses | 4,130 | 3,862 | 5,098 | 4,017 | 2,574 | ||||||||||||||
Accrued interest payable and other liabilities | 5,856 | 3,412 | 5,446 | 4,368 | 1,032 | ||||||||||||||
Advances from Federal Home Loan Bank | 108,092 | 48,128 | 71,164 | 38,200 | 38,235 | ||||||||||||||
Junior subordinated debentures | 11,702 | 11,702 | 11,702 | 11,702 | 3,093 | ||||||||||||||
Subordinated notes | 4,988 | 4,988 | 4,987 | 4,987 | 4,946 | ||||||||||||||
Other borrowings | — | — | 15,000 | — | — | ||||||||||||||
Branch liabilities held for sale | — | — | 64,627 | — | — | ||||||||||||||
Total liabilities | 2,625,186 | 2,565,886 | 2,456,654 | 2,048,932 | 1,260,987 | ||||||||||||||
Commitments and contingencies | |||||||||||||||||||
Stockholders’ equity: | |||||||||||||||||||
Common stock | 242 | 241 | 241 | 227 | 152 | ||||||||||||||
Additional paid-in capital | 447,234 | 445,964 | 445,517 | 404,900 | 211,901 | ||||||||||||||
Retained earnings | 65,208 | 55,015 | 44,627 | 41,143 | 36,003 | ||||||||||||||
Unallocated Employee Stock Ownership Plan shares | (106 | ) | (106 | ) | (106 | ) | (209 | ) | (209 | ) | |||||||||
Accumulated other comprehensive loss | (4,067 | ) | (3,611 | ) | (1,280 | ) | (62 | ) | (175 | ) | |||||||||
Treasury stock | (70 | ) | (70 | ) | (70 | ) | (70 | ) | (70 | ) | |||||||||
Total stockholders’ equity | 508,441 | 497,433 | 488,929 | 445,929 | 247,602 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 3,133,627 | $ | 3,063,319 | $ | 2,945,583 | $ | 2,494,861 | $ | 1,508,589 | |||||||||
VERITEX HOLDINGS, INC. AND SUBSIDIARY Condensed Consolidated Statements of Income - (Unaudited) (In thousands, except per share data) |
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For the Six Months Ended | |||||||
June 30, 2018 |
June 30, 2017 |
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Interest income: | |||||||
Interest and fees on loans | $ | 64,358 | $ | 24,907 | |||
Interest on investment securities | 2,975 | 1,310 | |||||
Interest on deposits in other banks | 1,300 | 1,158 | |||||
Interest on other | 9 | 1 | |||||
Total interest income | 68,642 | 27,376 | |||||
Interest expense: | |||||||
Interest on deposit accounts | 10,745 | 3,389 | |||||
Interest on borrowings | 1,171 | 358 | |||||
Total interest expense | 11,916 | 3,747 | |||||
Net interest income | 56,726 | 23,629 | |||||
Provision for loan losses | 2,182 | 1,833 | |||||
Net interest income after provision for loan losses | 54,544 | 21,796 | |||||
Noninterest income: | |||||||
Service charges and fees on deposit accounts | 1,779 | 1,064 | |||||
Gain on sales of investment securities | 12 | — | |||||
Gain on sales of loans and other assets owned | 997 | 1,554 | |||||
Bank-owned life insurance | 381 | 373 | |||||
Other | 2,204 | 310 | |||||
Total noninterest income | 5,373 | 3,301 | |||||
Noninterest expense: | |||||||
Salaries and employee benefits | 15,832 | 7,550 | |||||
Occupancy and equipment | 5,377 | 2,026 | |||||
Professional fees | 3,505 | 1,986 | |||||
Data processing and software expense | 1,904 | 732 | |||||
FDIC assessment fees | 538 | 651 | |||||
Marketing | 907 | 469 | |||||
Other assets owned expenses and write-downs | 172 | 38 | |||||
Amortization of intangibles | 1,834 | 190 | |||||
Telephone and communications | 840 | 208 | |||||
Other | 2,566 | 1,382 | |||||
Total noninterest expense | 33,475 | 15,232 | |||||
Net income from operations | 26,442 | 9,865 | |||||
Income tax expense | 5,861 | 3,152 | |||||
Net income | $ | 20,581 | $ | 6,713 | |||
Basic earnings per share | $ | 0.85 | $ | 0.44 | |||
Diluted earnings per share | $ | 0.84 | $ | 0.43 | |||
Weighted average basic shares outstanding | 24,139 | 15,205 | |||||
Weighted average diluted shares outstanding | 24,527 | 15,633 | |||||
VERITEX HOLDINGS, INC. AND SUBSIDIARY Condensed Consolidated Statements of Income - (Unaudited) (In thousands, except per share data) |
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For the Three Months Ended | |||||||||||||||||||
June 30, 2018 |
March 31, 2018 |
December 31, 2017 |
September 30, 2017 |
June 30, 2017 |
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Interest income: | |||||||||||||||||||
Interest and fees on loans | $ | 32,291 | $ | 32,067 | $ | 28,182 | $ | 20,706 | $ | 13,024 | |||||||||
Interest on investment securities | 1,647 | 1,328 | 1,211 | 941 | 735 | ||||||||||||||
Interest on deposits in other banks | 613 | 687 | 500 | 629 | 548 | ||||||||||||||
Interest on other | 4 | 5 | 4 | 3 | — | ||||||||||||||
Total interest income | 34,555 | 34,087 | 29,897 | 22,279 | 14,307 | ||||||||||||||
Interest expense: | |||||||||||||||||||
Interest on deposit accounts | 6,452 | 4,293 | 3,677 | 2,812 | 1,742 | ||||||||||||||
Interest on borrowings | 479 | 692 | 470 | 338 | 189 | ||||||||||||||
Total interest expense | 6,931 | 4,985 | 4,147 | 3,150 | 1,931 | ||||||||||||||
Net interest income | 27,624 | 29,102 | 25,750 | 19,129 | 12,376 | ||||||||||||||
Provision for loan losses | 1,504 | 678 | 2,529 | 752 | 943 | ||||||||||||||
Net interest income after provision for loan losses | 26,120 | 28,424 | 23,221 | 18,377 | 11,433 | ||||||||||||||
Noninterest income: | |||||||||||||||||||
Service charges and fees on deposit accounts | 846 | 933 | 769 | 669 | 555 | ||||||||||||||
Gain on sales of investment securities | 4 | 8 | 17 | 205 | — | ||||||||||||||
Gain on sales of loans and other assets owned | 416 | 581 | 882 | 705 | 807 | ||||||||||||||
Bank-owned life insurance | 192 | 189 | 192 | 188 | 186 | ||||||||||||||
Other | 1,134 | 1,070 | 438 | 210 | 218 | ||||||||||||||
Total noninterest income | 2,592 | 2,781 | 2,298 | 1,977 | 1,766 | ||||||||||||||
Noninterest expense: | |||||||||||||||||||
Salaries and employee benefits | 7,902 | 7,930 | 7,357 | 5,921 | 3,642 | ||||||||||||||
Occupancy and equipment | 2,143 | 3,234 | 1,996 | 1,596 | 1,015 | ||||||||||||||
Professional fees | 1,703 | 1,802 | 1,713 | 1,973 | 1,188 | ||||||||||||||
Data processing and software expense | 1,076 | 828 | 766 | 719 | 372 | ||||||||||||||
FDIC assessment fees | 236 | 302 | 116 | 410 | 393 | ||||||||||||||
Marketing | 446 | 461 | 388 | 436 | 225 | ||||||||||||||
Other assets owned expenses and write-downs | — | 172 | 73 | 71 | 13 | ||||||||||||||
Amortization of intangibles | 856 | 978 | 551 | 223 | 95 | ||||||||||||||
Telephone and communications | 414 | 426 | 282 | 230 | 106 | ||||||||||||||
Other | 1,393 | 1,173 | 1,793 | 943 | 733 | ||||||||||||||
Total noninterest expense | 16,169 | 17,306 | 15,035 | 12,522 | 7,782 | ||||||||||||||
Net income from operations | 12,543 | 13,899 | 10,484 | 7,832 | 5,417 | ||||||||||||||
Income tax expense | 2,350 | 3,511 | 7,227 | 2,650 | 1,802 | ||||||||||||||
Net income | $ | 10,193 | $ | 10,388 | $ | 3,257 | $ | 5,182 | $ | 3,615 | |||||||||
Preferred stock dividends | — | — | — | 42 | — | ||||||||||||||
Net income available to common stockholders | $ | 10,193 | $ | 10,388 | $ | 3,257 | $ | 5,140 | $ | 3,615 | |||||||||
Basic earnings per share | $ | 0.42 | $ | 0.43 | $ | 0.14 | $ | 0.26 | $ | 0.24 | |||||||||
Diluted earnings per share | $ | 0.42 | $ | 0.42 | $ | 0.14 | $ | 0.25 | $ | 0.23 | |||||||||
Weighted average basic shares outstanding | 24,148 | 24,120 | 23,124 | 19,976 | 15,211 | ||||||||||||||
Weighted average diluted shares outstanding | 24,546 | 24,539 | 23,524 | 20,392 | 15,637 | ||||||||||||||
VERITEX HOLDINGS, INC. AND SUBSIDIARY
Reconciliation of Non-GAAP Financial Measures - (Unaudited)
The following are the non-GAAP measures used in this release:
- core net interest income adjusts net interest income as determined in accordance with GAAP to exclude income recognized on acquired loans
- core noninterest income adjusts noninterest income as determined in accordance with GAAP to exclude gain on sale of disposed branch assets
- core noninterest expense adjusts noninterest expense as determined in accordance with GAAP to exclude corporate development costs
- core net income from operations is calculated as the sum of core net interest income and core noninterest income less provision from loan losses and core noninterest expense
- core income tax expense adjusts income tax expense as determined in accordance with GAAP to exclude 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 corporate development discrete items
- core net income adjusts net income as determined in accordance with GAAP to exclude the impact of income recognized on acquired loans, corporate development costs and the tax impact of the adjustments to core net interest income and core noninterest expense, exclude the re-measurement of our deferred tax asset as a result of the Tax Cut and Jobs Act and exclude the tax impact of other corporate development discrete items
- core net income available to common stockholders adjusts core net income to exclude preferred stock dividends
- core diluted EPS divides (i) core net income by (ii) weighted average diluted shares of common stock outstanding for the applicable period
- core efficiency ratio is determined by dividing core noninterest expense by the sum of core net interest income and noninterest income
- core net interest margin is determined by dividing core net interest income by average interest-earning assets
- core return on average assets is determined by dividing core net income by average assets
- tangible common equity is defined as total stockholders’ equity less goodwill and other intangible assets
- tangible assets is defined as total assets less goodwill and other intangible assets
- tangible common equity to tangible assets is a ratio that is determined by dividing tangible common equity by tangible assets
- tangible book value per common share is determined by dividing tangible common equity by common shares outstanding
Management believes that the non-GAAP financial measures above that are used in managing its business may provide meaningful information to investors about underlying trends in its business and management uses these non-GAAP measures to measure the Company’s performance and believes that these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results of operations with prior periods and show the effects of significant gains and charges in the periods presented without the impact of unusual items or events that may obscure trends in the Company’s underlying performance. These disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Veritex’s reported results prepared in accordance with GAAP.
VERITEX HOLDINGS, INC. AND SUBSIDIARY
Reconciliation of Non-GAAP Financial Measures - (Unaudited)
(In thousands except per share data and percentages)
The following tables reconcile, at the dates set forth below, the differences between these non-GAAP financial measures and their most directly comparable financial measures calculated in accordance with GAAP.
For the Three Months Ended | |||||||||||||||||||||
June 30, 2018 |
March 31, 2018 |
December 31, 2017 |
September 30, 2017 |
June 30, 2017 |
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Net interest income (as reported) | $ | 27,624 | $ | 29,102 | $ | 25,750 | $ | 19,129 | $ | 12,376 | |||||||||||
Adjustment: | |||||||||||||||||||||
Income recognized on acquired loans(1) | 1,664 | 4,009 | 2,955 | 637 | 135 | ||||||||||||||||
Core net interest income | 25,960 | 25,093 | 22,795 | 18,492 | 12,241 | ||||||||||||||||
Provision for loan losses (as reported) | 1,504 | 678 | 2,529 | 752 | 943 | ||||||||||||||||
Noninterest income (as reported) | 2,592 | 2,781 | 2,298 | 1,977 | 1,766 | ||||||||||||||||
Adjustment: | |||||||||||||||||||||
Gain on sale of disposed branch assets | — | 388 | — | — | — | ||||||||||||||||
Core noninterest income | 2,592 | 2,393 | 2,298 | 1,977 | 1,766 | ||||||||||||||||
Noninterest expense (as reported) | 16,169 | 17,306 | 15,035 | 12,522 | 7,782 | ||||||||||||||||
Adjustment: | |||||||||||||||||||||
Lease exit costs, net(2) | — | (1,071 | ) | — | — | — | |||||||||||||||
Branch closure expenses | — | (172 | ) | — | — | — | |||||||||||||||
One-time issuance of shares to all employees | (421 | ) | — | — | — | — | |||||||||||||||
Corporate development and other related expenses | (1,043 | ) | (335 | ) | (1,018 | ) | (1,391 | ) | (193 | ) | |||||||||||
Core noninterest expense | 14,705 | 15,728 | 14,017 | 11,131 | 7,589 | ||||||||||||||||
Core net income from operations | 12,343 | 11,080 | 8,547 | 8,586 | 5,475 | ||||||||||||||||
Income tax expense (as reported) | 2,350 | 3,511 | 7,227 | 2,650 | 1,802 | ||||||||||||||||
Adjustments: | |||||||||||||||||||||
Tax impact of adjustments | (40 | ) | (579 | ) | (678 | ) | 264 | 20 | |||||||||||||
Tax Act re-measurement | 127 | (820 | ) | (3,051 | ) | — | — | ||||||||||||||
Other corporate development discrete tax items | — | — | (398 | ) | — | — | |||||||||||||||
Core income tax expense | $ | 2,437 | $ | 2,112 | $ | 3,100 | $ | 2,914 | $ | 1,822 | |||||||||||
Net income (as reported) | $ | 10,193 | $ | 10,388 | $ | 3,257 | $ | 5,182 | $ | 3,615 | |||||||||||
Core net income | $ | 9,906 | $ | 8,968 | $ | 5,447 | $ | 5,672 | $ | 3,653 | |||||||||||
Preferred stock dividends (as reported) | $ | — | $ | — | $ | — | $ | 42 | $ | — | |||||||||||
Core net income available to common stockholders | $ | 9,906 | $ | 8,968 | $ | 5,447 | $ | 5,630 | $ | 3,653 | |||||||||||
Weighted average diluted shares outstanding | 24,546 | 24,539 | 23,524 | 20,392 | 15,637 | ||||||||||||||||
Diluted earnings per share (as reported) | 0.42 | 0.42 | 0.14 | 0.25 | 0.23 | ||||||||||||||||
Core diluted earnings per share | 0.40 | 0.37 | 0.23 | 0.28 | 0.23 | ||||||||||||||||
Efficiency Ratio | |||||||||||||||||||||
Efficiency ratio (as reported) | 53.51 | % | 54.28 | % | 53.60 | % | 59.33 | % | 55.03 | % | |||||||||||
Core efficiency ratio | 51.50 | % | 57.22 | % | 55.86 | % | 54.38 | % | 54.18 | % | |||||||||||
Net Interest Margin | |||||||||||||||||||||
Net interest margin (as reported) | 4.07 | % | 4.46 | % | 4.24 | % | 3.78 | % | 3.53 | % | |||||||||||
Core net interest margin | 3.83 | % | 3.84 | % | 3.75 | % | 3.66 | % | 3.49 | % | |||||||||||
Return on average assets | |||||||||||||||||||||
Return on average assets (as reported) | 1.34 | % | 1.41 | % | 0.48 | % | 0.94 | % | 0.97 | % | |||||||||||
Core return on average assets | 1.30 | % | 1.22 | % | 0.80 | % | 1.02 | % | 0.98 | % |
- Income recognized on acquired loans is calculated as the sum of accretion on purchased performing loans and cash collections in excess of expected cash flows on PCI loans.
- Lease exit costs, net for the three months ended
March 31, 2018 includes a$1.5 million consent fee and$240 thousand in professional services paid inJanuary 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 .
VERITEX HOLDINGS, INC. AND SUBSIDIARY Reconciliation of Non-GAAP Financial Measures - (Unaudited) (In thousands except per share data and percentages) |
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For the Three Months Ended | |||||||||||||||||||
June 30, 2018 |
March 31, 2018 |
December 31, 2017 |
September 30, 2017 |
June 30, 2017 |
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Tangible Common Equity | |||||||||||||||||||
Total stockholders’ equity | $ | 508,441 | $ | 497,433 | $ | 488,929 | $ | 445,929 | $ | 247,602 | |||||||||
Adjustments: | |||||||||||||||||||
Goodwill | (161,447 | ) | (161,685 | ) | (159,452 | ) | (135,832 | ) | (26,865 | ) | |||||||||
Intangible assets(1) | (17,482 | ) | (18,372 | ) | (22,165 | ) | (10,531 | ) | (2,171 | ) | |||||||||
Total tangible common equity | $ | 329,512 | $ | 317,376 | $ | 307,312 | $ | 299,566 | $ | 218,566 | |||||||||
Tangible Assets | |||||||||||||||||||
Total assets | $ | 3,133,627 | $ | 3,063,319 | $ | 2,945,583 | $ | 2,494,861 | $ | 1,508,589 | |||||||||
Adjustments: | |||||||||||||||||||
Goodwill | (161,447 | ) | (161,685 | ) | (159,452 | ) | (135,832 | ) | (26,865 | ) | |||||||||
Intangible assets(1) | (17,482 | ) | (18,372 | ) | (22,165 | ) | (10,531 | ) | (2,171 | ) | |||||||||
Total tangible assets | $ | 2,954,698 | $ | 2,883,262 | $ | 2,763,966 | $ | 2,348,498 | $ | 1,479,553 | |||||||||
Tangible Common Equity to Tangible Assets | 11.15 | % | 11.01 | % | 11.12 | % | 12.76 | % | 14.77 | % | |||||||||
Common shares outstanding | 24,181 | 24,149 | 24,110 | 22,644 | 15,233 | ||||||||||||||
Book value per common share(2) | $ | 21.03 | $ | 20.60 | $ | 20.28 | $ | 19.69 | $ | 16.25 | |||||||||
Tangible book value per common share | $ | 13.63 | $ | 13.14 | $ | 12.75 | $ | 13.23 | $ | 14.35 |
- Intangible assets as of
December 31, 2017 include branch intangible assets held for sale of$1.7 million . - 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.
VERITEX HOLDINGS, INC. AND SUBSIDIARY Net Interest Margin - (Unaudited) (In thousands except percentages) |
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For the Three Months Ended | ||||||||||||||||||||||||||||||||
June 30, 2018 | March 31, 2018 | June 30, 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) | $ | 2,333,283 | $ | 32,291 | 5.55 | % | $ | 2,261,133 | $ | 32,067 | 5.75 | % | $ | 1,070,436 | $ | 13,024 | 4.88 | % | ||||||||||||||
Securities available for sale | 248,670 | 1,647 | 2.66 | 222,026 | 1,328 | 2.43 | 135,795 | 735 | 2.17 | |||||||||||||||||||||||
Interest-bearing deposits in other banks |
136,803 | 613 | 1.80 | 163,996 | 687 | 1.70 | 199,050 | 548 | 1.10 | |||||||||||||||||||||||
Investment in unconsolidated subsidiary |
327 | 4 | 4.91 | 327 | 5 | 6.20 | 93 | — | — | |||||||||||||||||||||||
Total interest-earning assets | 2,719,083 | 34,555 | 5.10 | 2,647,482 | 34,087 | 4.92 | 1,405,374 | 14,307 | 4.08 | |||||||||||||||||||||||
Allowance for loan losses | (13,600 | ) | (13,133 | ) | (9,117 | ) | ||||||||||||||||||||||||||
Noninterest-earning assets | 353,973 | 355,625 | 104,819 | |||||||||||||||||||||||||||||
Total assets | $ | 3,059,456 | $ | 2,989,974 | $ | 1,501,076 | ||||||||||||||||||||||||||
Liabilities and Stockholders’ Equity |
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Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Interest-bearing deposits | $ | 1,864,940 | $ | 6,452 | 1.39 | % | $ | 1,745,195 | $ | 4,293 | 1.00 | % | $ | 870,542 | $ | 1,742 | 0.80 | % | ||||||||||||||
Advances from FHLB | 59,762 | 234 | 1.57 | 117,507 | 460 | 1.59 | 38,258 | 89 | 0.93 | |||||||||||||||||||||||
Other borrowings | 16,690 | 245 | 5.89 | 16,926 | 232 | 5.56 | 8,067 | 100 | 4.97 | |||||||||||||||||||||||
Total interest-bearing liabilities | 1,941,392 | 6,931 | 1.43 | 1,879,628 | 4,985 | 0.98 | 916,867 | 1,931 | 0.84 | |||||||||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | 605,760 | 600,215 | 334,813 | |||||||||||||||||||||||||||||
Other liabilities | 7,976 | 17,262 | 3,156 | |||||||||||||||||||||||||||||
Total noninterest-bearing liabilities |
613,736 | 617,477 | 337,969 | |||||||||||||||||||||||||||||
Stockholders’ equity | 504,328 | 492,869 | 246,240 | |||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity |
$ | 3,059,456 | $ | 2,989,974 | $ | 1,501,076 | ||||||||||||||||||||||||||
Net interest rate spread(2) | 3.67 | % | 4.14 | % | 3.24 | % | ||||||||||||||||||||||||||
Net interest income | $ | 27,624 | $ | 29,102 | $ | 12,376 | ||||||||||||||||||||||||||
Net interest margin(3) | 4.07 | % | 4.46 | % | 3.53 | % |
- Includes average outstanding balances of loans held for sale of
$1,349 ,$1,336 and$3,169 for the three months endedJune 30, 2018 , March 31, 2018, and June 30, 2017, respectively. - Net interest rate spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.
- Net interest margin is equal to net interest income divided by average interest-earning assets.
Media Contact:LaVonda Renfro 972-349-6200 lrenfro@veritexbank.com Investor Relations:Susan Caudle 972-349-6132 scaudle@veritexbank.com