Veritex Holdings, Inc. Reports Third Quarter Financial Results
Mr. Holland continued, “I am proud of our achievements and believe they are a function of our business model. At the heart of our model is a culture focused on key principles: treat our employees like they are our family; never compromise on credit quality; and focus on driving financial results that matter to our shareholders.”
Mr. Holland added, “As a testament to these principles, I am happy to announce that we were recognized for a third consecutive year in a row as one of the Best Banks to Work For as featured in
“Our loan balances have grown by
Third Quarter 2016 Financial Highlights
- Net interest income was
$10.5 million , an increase of$1.9 million , or 22.0%, compared to$8.6 million for the same period in 2015. - Total loans increased
$172.5 million , or 22.9%, to$926.7 million compared to$754.2 million as of September 30, 2015. - Total deposits increased
$234.6 million , or 27.8%, to$1.1 billion compared to$842.6 million as of September 30, 2015. - Pre-tax, pre-provision income was
$5.4 million , an increase of$1.6 million , or 40.9%, compared to$3.8 million for the same period in 2015. - Year-over-year improvement in the following performance ratios (annualized):
- Return on average assets of 1.10% compared to 1.04% for the same period in 2015.
- Return on average equity of 9.50% compared to 7.38% for the same period in 2015.
- Efficiency ratio of 56.64% compared to 60.48% for the same period in 2015.
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
Salaries and employee benefits expense was
Compared to the three months ended
Salaries and employee benefits expense was
Income Taxes
Income tax expense for the three months ended
Compared to the three months ended
Financial Condition
Loans (excluding loans held for sale and deferred loan fees) at September 30, 2016 were
Loans (excluding loans held for sale and deferred loan fees) increased
Deposits at September 30, 2016 were
Deposits increased
Advances from the
Asset Quality
The allowance for loan losses was 0.87%, 0.85%, and 0.82% of total loans at September 30, 2016, June 30, 2016, and September 30, 2015, respectively. The increase in allowance for loan losses as a percentage of total loans over the three quarter period was primarily due to changes in qualitative factors around the nature, volume and mix of the loan portfolio.
The provision for loan losses for the three months ended
Other real estate owned totaled
Nonperforming assets totaled
In the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, the Company disclosed a borrowing relationship comprised of loans to multiple affiliated funds in which one of the funds had publicly disclosed that it was subject to ongoing
The following table shows the principal balance of loans as of the dates specified for the above mentioned borrowing relationship.
Borrower | September 30, 2016 |
June 30, 2016 |
March 31, 2016 |
December 31, 2015 |
Comments | |||||||||||||
(In thousands) | ||||||||||||||||||
Loan 1 | $ | — | $ | 5,400 | $ | 6,000 | $ | 6,000 | Paid in full | |||||||||
Loan 2 | — | 1,579 | 1,579 | 3,082 | Paid in full | |||||||||||||
Loan 3 | — | — | 5,116 | 5,116 | Paid in full | |||||||||||||
Loan 4 | 4,242 | 8,644 | 10,290 | 11,250 | Split grade:$1,242 Pass:$3,000 Special Mention, note matured 10/15/2016 and is in the process of renewing |
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Total: | $ | 4,242 | $ | 15,623 | $ | 22,985 | $ | 25,448 | ||||||||||
The total is presented for informational purposes only; debts are not required to be aggregated for legal lending limit purposes.
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 tangible book value per common share, the tangible common equity to tangible assets ratio and pre-tax, pre-provision income. The Company has included in this release information related to these non-GAAP financial measures for the applicable periods presented. Please refer to “Consolidated Financial Highlights” at the end of this release for a reconciliation of these non-GAAP financial measures.
About
Headquartered in
For more information, visit www.veritexbank.com
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This release may contain certain forward-looking statements within the meaning of the securities laws that are based on various facts and derived utilizing important assumptions, current expectations, estimates and projections about the Company and its subsidiaries. Forward-looking statements include information regarding the Company’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. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing. Further, certain factors that could affect our future results and cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to whether the Company can: successfully implement its growth strategy, including identifying acquisition targets and consummating suitable acquisitions; continue to sustain internal growth rate; provide competitive products and services that appeal to its customers and target market; continue to have access to debt and equity capital markets; and achieve its performance goals. Other risks include, but are not limited to: the possibility that credit quality could deteriorate; actions of competitors; changes in laws and regulations (including changes in governmental interpretations of regulations and changes in accounting standards); economic conditions, including currency rate fluctuations and interest rate fluctuations; and weather. These and various other factors are discussed in the Company’s Final Prospectus, dated October 10, 2014, filed pursuant to Rule 424(b)(4), the Company’s Annual Report on Form 10-K filed on March 15, 2016, and other reports and statements the Company has filed with the
VERITEX HOLDINGS, INC. AND SUBSIDIARY Consolidated Financial Highlights - (Unaudited) (In thousands, except share and per share data) |
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At and For the Three Months Ended | |||||||||||||||||||||
September 30, 2016 |
June 30, 2016 |
March 31, 2016 |
December 31, 2015 |
September 30, 2015 |
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Selected Financial Data: | |||||||||||||||||||||
Net income | $ | 3,375 | $ | 3,173 | $ | 2,813 | $ | 2,573 | $ | 2,537 | |||||||||||
Net income available to common stockholders | 3,375 | 3,173 | 2,813 | 2,535 | 2,517 | ||||||||||||||||
Total assets | 1,269,238 | 1,215,497 | 1,130,480 | 1,039,600 | 1,009,539 | ||||||||||||||||
Total loans(1) | 926,712 | 928,000 | 885,415 | 820,567 | 754,199 | ||||||||||||||||
Provision for loan losses | 238 | 527 | 845 | 610 | — | ||||||||||||||||
Allowance for loan losses | 8,102 | 7,910 | 7,372 | 6,772 | 6,214 | ||||||||||||||||
Noninterest-bearing deposits | 304,972 | 354,570 | 296,481 | 301,367 | 299,864 | ||||||||||||||||
Total deposits | 1,077,217 | 1,027,729 | 946,058 | 868,410 | 842,607 | ||||||||||||||||
Total stockholders’ equity | 142,423 | 138,850 | 135,241 | 132,046 | 137,508 | ||||||||||||||||
Summary Performance Ratios: | |||||||||||||||||||||
Return on average assets(2) | 1.10 | % | 1.12 | % | 1.04 | % | 0.99 | % | 1.04 | % | |||||||||||
Return on average equity(2) | 9.50 | 9.26 | 8.39 | 7.37 | 7.38 | ||||||||||||||||
Net interest margin(3) | 3.70 | 3.90 | 3.87 | 3.78 | 3.84 | ||||||||||||||||
Efficiency ratio(4) | 56.64 | 54.13 | 54.01 | 56.11 | 60.48 | ||||||||||||||||
Noninterest expense to average assets(2) | 2.29 | 2.23 | 2.20 | 2.22 | 2.39 | ||||||||||||||||
Summary Credit Quality Data: | |||||||||||||||||||||
Nonaccrual loans | $ | 1,087 | $ | 1,028 | $ | 525 | $ | 593 | $ | 428 | |||||||||||
Accruing loans 90 or more days past due | 357 | 5,634 | 141 | 84 | — | ||||||||||||||||
Other real estate owned | 662 | 493 | 493 | 493 | 493 | ||||||||||||||||
Nonperforming assets to total assets | 0.17 | % | 0.59 | % | 0.11 | % | 0.11 | % | 0.09 | % | |||||||||||
Nonperforming loans to total loans | 0.16 | 0.72 | 0.08 | 0.08 | 0.06 | ||||||||||||||||
Allowance for loan losses to total loans | 0.87 | 0.85 | 0.83 | 0.83 | 0.82 | ||||||||||||||||
Net (recoveries) charge-offs to average loans outstanding | 0.03 | 0.03 | 0.03 | 0.01 | — | ||||||||||||||||
Capital Ratios: | |||||||||||||||||||||
Total stockholders’ equity to total assets | 11.22 | % | 11.42 | % | 11.96 | % | 12.70 | % | 13.62 | % | |||||||||||
Tangible common equity to tangible assets(5) | 9.14 | 9.25 | 9.63 | 10.17 | 10.30 | ||||||||||||||||
Tier 1 capital to average assets | 9.82 | 10.21 | 10.38 | 10.75 | 12.02 | ||||||||||||||||
Tier 1 capital to risk-weighted assets | 12.04 | 11.88 | 12.03 | 12.85 | 14.73 | ||||||||||||||||
Common equity tier 1 (to risk weighted assets) | 11.72 | 11.56 | 11.69 | 12.48 | 13.29 | ||||||||||||||||
Total capital to risk-weighted assets | 13.38 | 13.23 | 13.38 | 14.25 | 16.18 | ||||||||||||||||
_________________ |
(1) Total loans does not include loans held for sale and deferred fees. Loans held for sale were $4.9 million at September 30, 2016, $4.8 million at June 30, 2016, $3.6 million at March 31, 2016, $2.8 million at December 31, 2015 and $1.8 million at September 30, 2015. Deferred fees were $51 thousand at September 30, 2016, $52 thousand at June 30, 2016, $65 thousand at March 31, 2016, $61 thousand at December 31, 2015, and $55 thousand at September 30, 2015. |
(2) 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. |
(3) Net interest margin represents net interest income, annualized on a fully tax equivalent basis, divided by average interest-earning assets. |
(4) Efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income. |
(5) We calculate tangible common equity as total stockholders’ equity less preferred stock, goodwill, core deposit intangibles and other intangible assets, net of accumulated amortization, and we calculate tangible assets as total assets less goodwill and core deposit intangibles and other intangible assets, net of accumulated amortization. Tangible common equity to tangible assets is a non-GAAP financial measure, and, as we calculate tangible common equity to tangible assets, the most directly comparable GAAP financial measure is total stockholders’ equity to total assets. See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures in the table captioned “Reconciliation GAAP —NON-GAAP (Unaudited)." |
VERITEX HOLDINGS, INC. AND SUBSIDIARY Condensed Consolidated Balance Sheets - (Unaudited) (In thousands, except share and per share data) |
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September 30, 2016 |
June 30, 2016 |
March 31, 2016 |
December 31, 2015 |
September 30, 2015 |
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ASSETS | ||||||||||||||||||||
Cash and due from banks | $ | 15,837 | $ | 12,951 | $ | 12,416 | $ | 10,989 | $ | 10,478 | ||||||||||
Interest bearing deposits in other banks | 162,750 | 114,293 | 79,967 | 60,562 | 113,031 | |||||||||||||||
Total cash and cash equivalents | 178,587 | 127,244 | 92,383 | 71,551 | 123,509 | |||||||||||||||
Investment securities | 86,772 | 83,677 | 79,146 | 75,813 | 61,023 | |||||||||||||||
Loans held for sale | 4,856 | 4,793 | 3,597 | 2,831 | 1,766 | |||||||||||||||
Loans, net | 918,559 | 920,039 | 877,978 | 813,733 | 747,930 | |||||||||||||||
Accrued interest receivable | 2,414 | 2,259 | 2,252 | 2,216 | 2,088 | |||||||||||||||
Bank-owned life insurance | 19,922 | 19,767 | 19,614 | 19,459 | 19,299 | |||||||||||||||
Bank premises, furniture and equipment, net | 17,501 | 17,243 | 17,248 | 17,449 | 17,585 | |||||||||||||||
Non-marketable equity securities | 7,358 | 7,035 | 5,541 | 4,167 | 4,045 | |||||||||||||||
Investment in unconsolidated subsidiary | 93 | 93 | 93 | 93 | 93 | |||||||||||||||
Other real estate owned | 662 | 493 | 493 | 493 | 493 | |||||||||||||||
Intangible assets, net | 2,257 | 2,264 | 2,347 | 2,410 | 2,458 | |||||||||||||||
Goodwill | 26,865 | 26,865 | 26,865 | 26,865 | 26,025 | |||||||||||||||
Other assets | 3,392 | 3,725 | 2,923 | 2,520 | 3,225 | |||||||||||||||
Total assets | $ | 1,269,238 | $ | 1,215,497 | $ | 1,130,480 | $ | 1,039,600 | $ | 1,009,539 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest-bearing | $ | 304,972 | $ | 354,570 | $ | 296,481 | $ | 301,367 | $ | 299,864 | ||||||||||
Interest-bearing | 772,245 | 673,159 | 649,577 | 567,043 | 542,743 | |||||||||||||||
Total deposits | 1,077,217 | 1,027,729 | 946,058 | 868,410 | 842,607 | |||||||||||||||
Accounts payable and accrued expenses | 2,082 | 1,611 | 2,122 | 1,776 | 1,782 | |||||||||||||||
Accrued interest payable and other liabilities | 1,098 | 855 | 573 | 848 | 1,089 | |||||||||||||||
Advances from Federal Home Loan Bank | 38,341 | 38,375 | 38,410 | 28,444 | 18,478 | |||||||||||||||
Junior subordinated debentures | 3,093 | 3,093 | 3,093 | 3,093 | 3,093 | |||||||||||||||
Subordinated notes | 4,984 | 4,984 | 4,983 | 4,983 | 4,982 | |||||||||||||||
Total liabilities | 1,126,815 | 1,076,647 | 995,239 | 907,554 | 872,031 | |||||||||||||||
Commitments and contingencies | ||||||||||||||||||||
Stockholders’ equity: | ||||||||||||||||||||
Preferred stock | — | — | — | — | 8,000 | |||||||||||||||
Common stock | 107 | 107 | 107 | 107 | 107 | |||||||||||||||
Additional paid-in capital | 116,315 | 116,111 | 115,876 | 115,721 | 115,579 | |||||||||||||||
Retained earnings | 26,101 | 22,725 | 19,552 | 16,739 | 14,204 | |||||||||||||||
Unallocated Employee Stock Ownership Plan shares | (309 | ) | (309 | ) | (309 | ) | (309 | ) | (406 | ) | ||||||||||
Accumulated other comprehensive income (loss) | 279 | 286 | 85 | (142 | ) | 94 | ||||||||||||||
Treasury stock, 10,000 shares at cost | (70 | ) | (70 | ) | (70 | ) | (70 | ) | (70 | ) | ||||||||||
Total stockholders’ equity | 142,423 | 138,850 | 135,241 | 132,046 | 137,508 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,269,238 | $ | 1,215,497 | $ | 1,130,480 | $ | 1,039,600 | $ | 1,009,539 |
VERITEX HOLDINGS, INC. AND SUBSIDIARY Condensed Consolidated Statements of Income - (Unaudited) (In thousands, except share and per share data) |
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Nine Months Ended | ||||||||
September 30, 2016 |
September 30, 2015 |
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Interest income: | ||||||||
Interest and fees on loans | $ | 32,996 | $ | 24,032 | ||||
Interest on investment securities | 1,014 | 712 | ||||||
Interest on deposits in other banks | 302 | 169 | ||||||
Interest on other | 2 | 1 | ||||||
Total interest income | 34,314 | 24,914 | ||||||
Interest expense: | ||||||||
Interest on deposit accounts | 3,388 | 2,075 | ||||||
Interest on borrowings | 491 | 392 | ||||||
Total interest expense | 3,879 | 2,467 | ||||||
Net interest income | 30,435 | 22,447 | ||||||
Provision for loan losses | 1,610 | 258 | ||||||
Net interest income after provision for loan losses | 28,825 | 22,189 | ||||||
Noninterest income: | ||||||||
Service charges and fees on deposit accounts | 1,309 | 907 | ||||||
Gain on sales of investment securities | 15 | 7 | ||||||
Gain on sales of loans | 2,318 | 824 | ||||||
Loss on sales of other assets owned | — | 19 | ||||||
Bank-owned life insurance | 577 | 552 | ||||||
Other | 460 | 188 | ||||||
Total noninterest income | 4,679 | 2,497 | ||||||
Noninterest expense: | ||||||||
Salaries and employee benefits | 10,683 | 8,247 | ||||||
Occupancy and equipment | 2,718 | 2,560 | ||||||
Professional fees | 1,861 | 1,536 | ||||||
Data processing and software expense | 850 | 903 | ||||||
FDIC assessment fees | 447 | 317 | ||||||
Marketing | 704 | 595 | ||||||
Other assets owned expenses and write-downs | 139 | 29 | ||||||
Amortization of intangibles | 285 | 243 | ||||||
Telephone and communications | 295 | 182 | ||||||
Other | 1,323 | 1,043 | ||||||
Total noninterest expense | 19,305 | 15,655 | ||||||
Net income from operations | 14,199 | 9,031 | ||||||
Income tax expense | 4,837 | 2,814 | ||||||
Net income | $ | 9,362 | $ | 6,217 | ||||
Preferred stock dividends | $ | — | $ | 60 | ||||
Net income available to common stockholders | $ | 9,362 | $ | 6,157 | ||||
Basic earnings per share | $ | 0.88 | $ | 0.62 | ||||
Diluted earnings per share | $ | 0.85 | $ | 0.61 | ||||
Weighted average basic shares outstanding | 10,698,452 | 9,853,785 | ||||||
Weighted average diluted shares outstanding | 10,992,723 | 10,121,184 |
VERITEX HOLDINGS, INC. AND SUBSIDIARY Condensed Consolidated Statements of Income - (Unaudited) (In thousands, except share and per share data) |
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For the Three Months Ended | ||||||||||||||||||||
September 30, 2016 |
June 30, 2016 |
March 31, 2016 |
December 31, 2015 |
September 30, 2015 |
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Interest income: | ||||||||||||||||||||
Interest and fees on loans | $ | 11,589 | $ | 11,052 | $ | 10,355 | $ | 9,648 | $ | 9,230 | ||||||||||
Interest on investment securities | 335 | 344 | 335 | 285 | 247 | |||||||||||||||
Interest on deposits in other banks | 129 | 80 | 92 | 73 | 60 | |||||||||||||||
Interest on other | 1 | 1 | 1 | 1 | 1 | |||||||||||||||
Total interest income | 12,054 | 11,477 | 10,783 | 10,007 | 9,538 | |||||||||||||||
Interest expense: | ||||||||||||||||||||
Interest on deposit accounts | 1,381 | 1,072 | 935 | 843 | 778 | |||||||||||||||
Interest on borrowings | 156 | 177 | 158 | 151 | 143 | |||||||||||||||
Total interest expense | 1,537 | 1,249 | 1,093 | 994 | 921 | |||||||||||||||
Net interest income | 10,517 | 10,228 | 9,690 | 9,013 | 8,617 | |||||||||||||||
Provision for loan losses | 238 | 527 | 845 | 610 | — | |||||||||||||||
Net interest income after provision for loan losses | 10,279 | 9,701 | 8,845 | 8,403 | 8,617 | |||||||||||||||
Noninterest income: | ||||||||||||||||||||
Service charges and fees on deposit accounts | 433 | 443 | 434 | 419 | 380 | |||||||||||||||
Gain on sales of investment securities | — | — | 15 | — | — | |||||||||||||||
Gain on sales of loans | 1,036 | 620 | 662 | 430 | 392 | |||||||||||||||
Gain on sales of other assets owned | — | — | — | — | 21 | |||||||||||||||
Bank-owned life insurance | 193 | 191 | 193 | 195 | 194 | |||||||||||||||
Other | 231 | 158 | 69 | 163 | 56 | |||||||||||||||
Total noninterest income | 1,893 | 1,412 | 1,373 | 1,207 | 1,043 | |||||||||||||||
Noninterest expense: | ||||||||||||||||||||
Salaries and employee benefits | 3,920 | 3,589 | 3,174 | 3,019 | 3,001 | |||||||||||||||
Occupancy and equipment | 923 | 894 | 901 | 917 | 894 | |||||||||||||||
Professional fees | 785 | 503 | 573 | 487 | 632 | |||||||||||||||
Data processing and software expense | 296 | 270 | 284 | 313 | 368 | |||||||||||||||
FDIC assessment fees | 179 | 132 | 137 | 131 | 121 | |||||||||||||||
Marketing | 293 | 211 | 200 | 205 | 227 | |||||||||||||||
Other assets owned expenses and write-downs | 9 | 55 | 75 | 24 | (5 | ) | ||||||||||||||
Amortization of intangibles | 95 | 95 | 95 | 95 | 96 | |||||||||||||||
Telephone and communications | 98 | 100 | 97 | 81 | 68 | |||||||||||||||
Other | 431 | 452 | 439 | 462 | 440 | |||||||||||||||
Total noninterest expense | 7,029 | 6,301 | 5,975 | 5,734 | 5,842 | |||||||||||||||
Net income from operations | 5,143 | 4,812 | 4,243 | 3,876 | 3,818 | |||||||||||||||
Income tax expense | 1,768 | 1,639 | 1,430 | 1,303 | 1,281 | |||||||||||||||
Net income | $ | 3,375 | $ | 3,173 | $ | 2,813 | $ | 2,573 | $ | 2,537 | ||||||||||
Preferred stock dividends | $ | — | $ | — | $ | — | $ | 38 | $ | 20 | ||||||||||
Net income available to common stockholders | $ | 3,375 | $ | 3,173 | $ | 2,813 | $ | 2,535 | $ | 2,517 | ||||||||||
Basic earnings per share | $ | 0.32 | $ | 0.30 | $ | 0.26 | $ | 0.24 | $ | 0.24 | ||||||||||
Diluted earnings per share | $ | 0.31 | $ | 0.29 | $ | 0.26 | $ | 0.23 | $ | 0.23 | ||||||||||
Weighted average basic shares outstanding | 10,705,115 | 10,696,366 | 10,693,800 | 10,675,948 | 10,652,602 | |||||||||||||||
Weighted average diluted shares outstanding | 11,024,695 | 10,993,921 | 10,963,986 | 10,954,920 | 10,940,427 |
VERITEX HOLDINGS, INC. AND SUBSIDIARY Reconciliation GAAP — NON-GAAP - (Unaudited) (In thousands, except share and per share data) |
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The following table reconciles, at the dates set forth below, total stockholders’ equity to tangible common equity and total assets to tangible assets: | ||||||||||||||||||||
September 30, 2016 |
June 30, 2016 |
March 31, 2016 |
December 31, 2015 |
September 30, 2015 |
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Tangible Common Equity | ||||||||||||||||||||
Total stockholders’ equity | $ | 142,423 | $ | 138,850 | $ | 135,241 | $ | 132,046 | $ | 137,508 | ||||||||||
Adjustments: | ||||||||||||||||||||
Preferred stock | — | — | — | — | (8,000 | ) | ||||||||||||||
Goodwill | (26,865 | ) | (26,865 | ) | (26,865 | ) | (26,865 | ) | (26,025 | ) | ||||||||||
Intangible assets | (2,257 | ) | (2,264 | ) | (2,347 | ) | (2,410 | ) | (2,458 | ) | ||||||||||
Total tangible common equity | $ | 113,301 | $ | 109,721 | $ | 106,029 | $ | 102,771 | $ | 101,025 | ||||||||||
Tangible Assets | ||||||||||||||||||||
Total assets | $ | 1,269,238 | $ | 1,215,497 | $ | 1,130,480 | $ | 1,039,600 | $ | 1,009,539 | ||||||||||
Adjustments: | ||||||||||||||||||||
Goodwill | (26,865 | ) | (26,865 | ) | (26,865 | ) | (26,865 | ) | (26,025 | ) | ||||||||||
Intangible assets | (2,257 | ) | (2,264 | ) | (2,347 | ) | (2,410 | ) | (2,458 | ) | ||||||||||
Total tangible assets | $ | 1,240,116 | $ | 1,186,368 | $ | 1,101,268 | $ | 1,010,325 | $ | 981,056 | ||||||||||
Tangible Common Equity to Tangible Assets | 9.14 | % | 9.25 | % | 9.63 | % | 10.17 | % | 10.30 | % | ||||||||||
Common shares outstanding | 10,736 | 10,728 | 10,724 | 10,712 | 10,700 | |||||||||||||||
Book value per common share(1) | $ | 13.27 | $ | 12.94 | $ | 12.61 | $ | 12.33 | $ | 12.10 | ||||||||||
Tangible book value per common share(2) | $ | 10.55 | $ | 10.23 | $ | 9.89 | $ | 9.59 | $ | 9.44 | ||||||||||
_________________ |
(1) We calculate book value per common share as stockholders’ equity less preferred stock 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. |
(2) We calculate tangible book value per common share as total stockholders’ equity less preferred stock, goodwill, and intangible assets, net of accumulated amortization 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. Tangible book value per common share is a non-GAAP financial measure, and, as we calculate tangible book value per common share, the most directly comparable GAAP financial measure is total stockholders’ equity per common share. |
VERITEX HOLDINGS, INC. AND SUBSIDIARY Reconciliation GAAP — NON-GAAP - (Unaudited) (In thousands) |
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The following table reconciles net income from operations to pre-tax, pre-provision income: | ||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
September 30, 2016 |
June 30, 2016 |
March 31, 2016 |
December 31, 2015 |
September 30, 2015 |
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Pre-Tax, Pre-Provision Income | ||||||||||||||||||||
Provision for loan losses | $ | 238 | $ | 527 | $ | 845 | $ | 610 | $ | — | ||||||||||
Net income from operations | 5,143 | 4,812 | 4,243 | 3,876 | 3,818 | |||||||||||||||
Total pre-tax, pre-provision income(1) | $ | 5,381 | $ | 5,339 | $ | 5,088 | $ | 4,486 | $ | 3,818 | ||||||||||
_____________________ |
(1) We calculate pre-tax, pre-provision income by adding the total provision for loan losses to net income from operations for the relevant period. |
VERITEX HOLDINGS, INC. AND SUBSIDIARY Net Interest Margin - (Unaudited) (In thousands) |
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For the Three Months Ended | ||||||||||||||||||||||||||||||||||
September 30, 2016 | June 30, 2016 | September 30, 2015 | ||||||||||||||||||||||||||||||||
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) | $ | 954,053 | $ | 11,589 | 4.83 | % | $ | 914,121 | $ | 11,052 | 4.86 | % | $ | 756,542 | $ | 9,230 | 4.84 | % | ||||||||||||||||
Securities available for sale | 83,233 | 335 | 1.60 | 80,498 | 344 | 1.72 | 63,204 | 247 | 1.55 | |||||||||||||||||||||||||
Investment in subsidiary | 93 | 1 | 4.28 | 93 | 1 | 4.32 | 93 | 1 | 4.27 | |||||||||||||||||||||||||
Interest-earning deposits in financial institutions | 94,596 | 129 | 0.54 | 59,506 | 80 | 0.54 | 70,363 | 60 | 0.34 | |||||||||||||||||||||||||
Total interest-earning assets | 1,131,975 | 12,054 | 4.24 | 1,054,218 | 11,477 | 4.38 | 890,202 | 9,538 | 4.25 | |||||||||||||||||||||||||
Allowance for loan losses | (8,115 | ) | (7,604 | ) | (7,146 | ) | ||||||||||||||||||||||||||||
Noninterest-earning assets | 95,901 | 92,179 | 88,023 | |||||||||||||||||||||||||||||||
Total assets | $ | 1,219,761 | $ | 1,138,793 | $ | 971,079 | ||||||||||||||||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||
Interest-bearing deposits | $ | 726,958 | $ | 1,381 | 0.76 | % | $ | 636,875 | $ | 1,072 | 0.68 | % | $ | 520,806 | $ | 778 | 0.59 | % | ||||||||||||||||
Advances from FHLB | 38,363 | 59 | 0.61 | 54,425 | 80 | 0.59 | 19,404 | 56 | 1.14 | |||||||||||||||||||||||||
Other borrowings | 8,078 | 97 | 4.78 | 8,077 | 97 | 4.83 | 9,077 | 86 | 3.76 | |||||||||||||||||||||||||
Total interest-bearing liabilities | 773,399 | 1,537 | 0.79 | 699,377 | 1,249 | 0.72 | 549,287 | 920 | 0.66 | |||||||||||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | 301,740 | 298,887 | 282,934 | |||||||||||||||||||||||||||||||
Other liabilities | 3,284 | 2,687 | 2,403 | |||||||||||||||||||||||||||||||
Total noninterest-bearing liabilities | 305,024 | 301,574 | 285,337 | |||||||||||||||||||||||||||||||
Stockholders’ equity | 141,338 | 137,842 | 136,455 | |||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,219,761 | $ | 1,138,793 | $ | 971,079 | ||||||||||||||||||||||||||||
Net interest rate spread(2) | 3.45 | % | 3.66 | % | 3.59 | % | ||||||||||||||||||||||||||||
Net interest income | $ | 10,517 | $ | 10,228 | $ | 8,618 | ||||||||||||||||||||||||||||
Net interest margin(3) | 3.70 | % | 3.90 | % | 3.84 | % | ||||||||||||||||||||||||||||
_________________ |
(1) Includes average outstanding balances of loans held for sale of $6,047, $5,192 and $4,215 for the three months ended September 30, 2016, June 30, 2016, and September 30, 2015, 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. |
Media Contact:LaVonda Renfro 972-349-6200 lrenfro@veritexbank.com Investor Relations: 972-349-6200 scaudle@veritexbank.com