Veritex Holdings, Inc. Reports Fourth Quarter and Year-End 2016 Results
Full Year 2016 Highlights
- Entered into a definitive agreement on
December 14, 2016 to merge withDallas -basedSovereign Bancshares, Inc. and wholly-owned subsidiarySovereign Bank which is expected to close the second quarter of 2017. As ofSeptember 30, 2016 , Sovereign Bancshares reported, on a consolidated basis, total assets of$1.1 billion and total deposits of$858.6 million . - Successfully completed a public offering of 4,444,750 shares of common stock at a price to the public of
$22.50 per share. - Full year 2016 diluted earnings per common share increased to
$1.13 , or 34.5%, compared to$0.84 for the full year 2015. - Net income was
$12.6 million for 2016, an increase of$3.8 million , or 42.8%, compared to$8.8 million for the full year 2015. - Average loan balances increased
$227.0 million , or 32.6%, compared to the full year 2015. - Average noninterest deposits increased
$35.0 million , or 13.1%, compared to the full year 2015. - Credit quality remained excellent with nonperforming assets to total assets at 0.17% and net charge-offs for the full year 2016 at $298 thousand.
2016 Fourth Quarter Highlights
- Pre-tax, pre-provision income was
$5.3 million , an increase of$812 thousand , or 18.1%, compared to$4.5 million for the same period in 2015. The quarter included pre-tax noninterest expense of$277.8 thousand related to the definitive agreement of merger withSovereign Bancshares, Inc. - Diluted EPS of
$0.27 increased$0.04 , or 17.4%, compared to the same period in 2015. - Net interest income increased
$1.5 million , or 16.7%, compared to the same period in 2015. - Noninterest income increased
$617 thousand , or 51.1%, compared to the same period in 2015. - Noninterest expense increased
$1.3 million , or 22.9% compared to the same period in 2015. Excluding merger expenses, noninterest expense increased$1.1 million or 19.0% compared to the same period in 2015. - Total loans increased
$171.3 million , or 20.9%, to$991.9 million compared to the same period in 2015. - Total deposits increased
$251.2 million , or 28.9%, to$1.1 billion compared to the same period in 2015. - In November 2016,
Veritex Bank was named in the list of The Dallas Morning News’ Top 100 Places to Work 2016.
Result of Operations for the Three Months Ended
Net Interest Income
For the three months ended
Compared to the three months ended December 31, 2015, 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 December 31, 2015, noninterest income grew
Noninterest Expense
Noninterest expense was
Salaries and employee benefits expense was
Compared to the three months ended December 31, 2015, noninterest expense increased
Salaries and employee benefits expense was
Income Taxes
Income tax expense for the three months ended
Compared to the three months ended December 31, 2015, income tax expense increased
Financial Condition
Loans (excluding loans held for sale and deferred loan fees) at December 31, 2016 were
Loans (excluding loans held for sale and deferred loan fees) increased
Deposits at December 31, 2016 were
Deposits increased
Advances from the
Asset Quality
Nonperforming assets totaled
Other real estate owned totaled
The provision for loan losses for the three months ended December 31, 2016 totaled $440 thousand compared to
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
Special Cautionary Notice Regarding Forward‑Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the current views of the Company’s management with respect to, among other things, future events and the Company’s financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “project,” “forecast,” “goal,” “target,” “would” and “outlook,” or the negative variations of those words or other comparable words of a future or forward-looking nature. The Company cautions you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Factors that could cause actual results to differ materially from the Company’s expectations include costs associated with its acquisition of
Important Additional Information
The information contained herein does not constitute an offer to sell or a solicitation of an offer to buy any securities or a solicitation of any vote or approval. In connection with the proposed merger of the Company and
The Company and Sovereign Bancshares and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from their stockholders in connection with the proposed transaction. Information about the Company’s participants may be found in the definitive proxy statement of the Company relating to its 2016 Annual Meeting of Stockholders filed with the
VERITEX HOLDINGS, INC. AND SUBSIDIARY | ||||||||||||||||||||
Consolidated Financial Highlights - (Unaudited) | ||||||||||||||||||||
(In thousands, except share and per share data) | ||||||||||||||||||||
At and For the Three Months Ended | ||||||||||||||||||||
December 31, 2016 |
September 30, 2016 |
June 30, 2016 |
March 31, 2016 |
December 31, 2015 |
||||||||||||||||
Selected Financial Data: | ||||||||||||||||||||
Net income | $ | 3,191 | $ | 3,375 | $ | 3,173 | $ | 2,813 | $ | 2,573 | ||||||||||
Net income available to common stockholders | 3,191 | 3,375 | 3,173 | 2,813 | 2,535 | |||||||||||||||
Total assets | 1,408,350 | 1,269,238 | 1,215,497 | 1,130,480 | 1,039,600 | |||||||||||||||
Total loans(1) | 991,897 | 926,712 | 928,000 | 885,415 | 820,567 | |||||||||||||||
Provision for loan losses | 440 | 238 | 527 | 845 | 610 | |||||||||||||||
Allowance for loan losses | 8,524 | 8,102 | 7,910 | 7,372 | 6,772 | |||||||||||||||
Noninterest-bearing deposits | 327,614 | 304,972 | 354,570 | 296,481 | 301,367 | |||||||||||||||
Total deposits | 1,119,630 | 1,077,217 | 1,027,729 | 946,058 | 868,410 | |||||||||||||||
Total stockholders’ equity | 238,888 | 142,423 | 138,850 | 135,241 | 132,046 | |||||||||||||||
Summary Performance Ratios: | ||||||||||||||||||||
Return on average assets(2) | 0.97 | % | 1.10 | % | 1.12 | % | 1.04 | % | 0.99 | % | ||||||||||
Return on average equity(2) | 8.11 | 9.50 | 9.26 | 8.39 | 7.37 | |||||||||||||||
Net interest margin(3) | 3.44 | 3.70 | 3.90 | 3.87 | 3.78 | |||||||||||||||
Efficiency ratio(4) | 57.08 | 56.64 | 54.13 | 54.01 | 56.11 | |||||||||||||||
Noninterest expense to average assets(2) | 2.14 | 2.29 | 2.23 | 2.20 | 2.22 | |||||||||||||||
Summary Credit Quality Data: | ||||||||||||||||||||
Nonaccrual loans | $ | 941 | $ | 1,087 | $ | 1,028 | $ | 525 | $ | 591 | ||||||||||
Accruing loans 90 or more days past due | 835 | 357 | 5,634 | 141 | 84 | |||||||||||||||
Other real estate owned | 662 | 662 | 493 | 493 | 493 | |||||||||||||||
Nonperforming assets to total assets | 0.17 | % | 0.17 | % | 0.59 | % | 0.11 | % | 0.11 | % | ||||||||||
Nonperforming loans to total loans | 0.18 | % | 0.16 | % | 0.72 | % | 0.08 | % | 0.08 | % | ||||||||||
Allowance for loan losses to total loans | 0.86 | % | 0.87 | % | 0.85 | % | 0.83 | % | 0.83 | % | ||||||||||
Net (recoveries) charge-offs to average loans outstanding | 0.03 | % | 0.03 | % | 0.03 | % | 0.03 | % | 0.01 | % | ||||||||||
Capital Ratios: | ||||||||||||||||||||
Total stockholders’ equity to total assets | 16.96 | % | 11.22 | % | 11.42 | % | 11.96 | % | 12.70 | % | ||||||||||
Tangible common equity to tangible assets(5) | 15.21 | % | 9.14 | % | 9.25 | % | 9.63 | % | 10.17 | % | ||||||||||
Tier 1 capital to average assets | 16.82 | % | 9.82 | % | 10.21 | % | 10.38 | % | 10.75 | % | ||||||||||
Tier 1 capital to risk-weighted assets | 20.72 | % | 12.04 | % | 11.88 | % | 12.03 | % | 12.85 | % | ||||||||||
Common equity tier 1 (to risk weighted assets) | 20.42 | % | 11.72 | % | 11.56 | % | 11.69 | % | 12.48 | % | ||||||||||
Total capital to risk-weighted assets | 22.02 | % | 13.38 | % | 13.23 | % | 13.38 | % | 14.25 | % | ||||||||||
(1) Total loans does not include loans held for sale and deferred fees. Loans held for sale were
(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) | ||||||||||||||||||||
December 31, 2016 |
September 30, 2016 |
June 30, 2016 |
March 31, 2016 |
December 31, 2015 |
||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and due from banks | $ | 15,631 | $ | 15,837 | $ | 12,951 | $ | 12,416 | $ | 10,989 | ||||||||||
Interest bearing deposits in other banks | 219,160 | 162,750 | 114,293 | 79,967 | 60,562 | |||||||||||||||
Total cash and cash equivalents | 234,791 | 178,587 | 127,244 | 92,383 | 71,551 | |||||||||||||||
Investment securities | 102,559 | 86,772 | 83,677 | 79,146 | 75,813 | |||||||||||||||
Loans held for sale | 5,208 | 4,856 | 4,793 | 3,597 | 2,831 | |||||||||||||||
Loans, net | 983,318 | 918,559 | 920,039 | 877,978 | 813,733 | |||||||||||||||
Accrued interest receivable | 2,907 | 2,414 | 2,259 | 2,252 | 2,216 | |||||||||||||||
Bank-owned life insurance | 20,077 | 19,922 | 19,767 | 19,614 | 19,459 | |||||||||||||||
Bank premises, furniture and equipment, net | 17,413 | 17,501 | 17,243 | 17,248 | 17,449 | |||||||||||||||
Non-marketable equity securities | 7,366 | 7,358 | 7,035 | 5,541 | 4,167 | |||||||||||||||
Investment in unconsolidated subsidiary | 93 | 93 | 93 | 93 | 93 | |||||||||||||||
Other real estate owned | 662 | 662 | 493 | 493 | 493 | |||||||||||||||
Intangible assets, net | 2,181 | 2,257 | 2,264 | 2,347 | 2,410 | |||||||||||||||
Goodwill | 26,865 | 26,865 | 26,865 | 26,865 | 26,865 | |||||||||||||||
Other assets | 4,910 | 3,392 | 3,725 | 2,923 | 2,520 | |||||||||||||||
Total assets | $ | 1,408,350 | $ | 1,269,238 | $ | 1,215,497 | $ | 1,130,480 | $ | 1,039,600 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest-bearing | $ | 327,614 | $ | 304,972 | $ | 354,570 | $ | 296,481 | $ | 301,367 | ||||||||||
Interest-bearing | 792,016 | 772,245 | 673,159 | 649,577 | 567,043 | |||||||||||||||
Total deposits | 1,119,630 | 1,077,217 | 1,027,729 | 946,058 | 868,410 | |||||||||||||||
Accounts payable and accrued expenses | 2,914 | 2,082 | 1,611 | 2,122 | 1,776 | |||||||||||||||
Accrued interest payable and other liabilities | 534 | 1,098 | 855 | 573 | 848 | |||||||||||||||
Advances from Federal Home Loan Bank | 38,306 | 38,341 | 38,375 | 38,410 | 28,444 | |||||||||||||||
Junior subordinated debentures | 3,093 | 3,093 | 3,093 | 3,093 | 3,093 | |||||||||||||||
Subordinated notes | 4,985 | 4,984 | 4,984 | 4,983 | 4,983 | |||||||||||||||
Total liabilities | 1,169,462 | 1,126,815 | 1,076,647 | 995,239 | 907,554 | |||||||||||||||
Commitments and contingencies | ||||||||||||||||||||
Stockholders’ equity: | ||||||||||||||||||||
Preferred stock | — | — | — | — | — | |||||||||||||||
Common stock | 152 | 107 | 107 | 107 | 107 | |||||||||||||||
Additional paid-in capital | 210,973 | 116,315 | 116,111 | 115,876 | 115,721 | |||||||||||||||
Retained earnings | 29,290 | 26,101 | 22,725 | 19,552 | 16,739 | |||||||||||||||
Unallocated Employee Stock Ownership Plan shares | (209 | ) | (309 | ) | (309 | ) | (309 | ) | (309 | ) | ||||||||||
Accumulated other comprehensive income (loss) | (1,248 | ) | 279 | 286 | 85 | (142 | ) | |||||||||||||
Treasury stock, 10,000 shares at cost | (70 | ) | (70 | ) | (70 | ) | (70 | ) | (70 | ) | ||||||||||
Total stockholders’ equity | 238,888 | 142,423 | 138,850 | 135,241 | 132,046 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,408,350 | $ | 1,269,238 | $ | 1,215,497 | $ | 1,130,480 | $ | 1,039,600 | ||||||||||
VERITEX HOLDINGS, INC. AND SUBSIDIARY | ||||||||
Condensed Consolidated Statements of Income - (Unaudited) | ||||||||
(In thousands, except share and per share data) | ||||||||
For the Year Ended | ||||||||
December 31, 2016 |
December 31, 2015 |
|||||||
Interest income: | ||||||||
Interest and fees on loans | $ | 44,681 | $ | 33,680 | ||||
Interest on investment securities | 1,409 | 997 | ||||||
Interest on deposits in other banks | 503 | 241 | ||||||
Interest on other | 2 | 2 | ||||||
Total interest income | 46,595 | 34,920 | ||||||
Interest expense: | ||||||||
Interest on deposit accounts | 4,988 | 2,918 | ||||||
Interest on borrowings | 652 | 543 | ||||||
Total interest expense | 5,640 | 3,461 | ||||||
Net interest income | 40,955 | 31,459 | ||||||
Provision for loan losses | 2,050 | 868 | ||||||
Net interest income after provision for loan losses | 38,905 | 30,591 | ||||||
Noninterest income: | ||||||||
Service charges and fees on deposit accounts | 1,846 | 1,326 | ||||||
Gain on sales of investment securities | 15 | 7 | ||||||
Gain on sales of loans | 3,288 | 1,254 | ||||||
Loss on sales of other assets owned | — | 19 | ||||||
Bank-owned life insurance | 771 | 747 | ||||||
Other | 583 | 351 | ||||||
Total noninterest income | 6,503 | 3,704 | ||||||
Noninterest expense: | ||||||||
Salaries and employee benefits | 14,295 | 11,265 | ||||||
Occupancy and equipment | 3,667 | 3,477 | ||||||
Professional fees | 2,804 | 2,023 | ||||||
Data processing and software expense | 1,158 | 1,216 | ||||||
FDIC assessment fees | 661 | 448 | ||||||
Marketing | 983 | 799 | ||||||
Other assets owned expenses and write-downs | 163 | 53 | ||||||
Amortization of intangibles | 380 | 338 | ||||||
Telephone and communications | 402 | 263 | ||||||
Other | 1,839 | 1,506 | ||||||
Total noninterest expense | 26,352 | 21,388 | ||||||
Net income from operations | 19,056 | 12,907 | ||||||
Income tax expense | 6,505 | 4,117 | ||||||
Net income | $ | 12,551 | $ | 8,790 | ||||
Preferred stock dividends | $ | — | $ | 98 | ||||
Net income available to common stockholders | $ | 12,551 | $ | 8,692 | ||||
Basic earnings per share | $ | 1.16 | $ | 0.86 | ||||
Diluted earnings per share | $ | 1.13 | $ | 0.84 | ||||
Weighted average basic shares outstanding | 10,849,331 | 10,061,015 | ||||||
Weighted average diluted shares outstanding | 11,153,393 | 10,332,158 | ||||||
VERITEX HOLDINGS, INC. AND SUBSIDIARY | ||||||||||||||||||||
Condensed Consolidated Statements of Income - (Unaudited) | ||||||||||||||||||||
(In thousands, except share and per share data) | ||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
December 31, 2016 |
September 30, 2016 |
June 30, 2016 |
March 31, 2016 |
December 31, 2015 |
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Interest income: | ||||||||||||||||||||
Interest and fees on loans | $ | 11,684 | $ | 11,589 | $ | 11,052 | $ | 10,355 | $ | 9,648 | ||||||||||
Interest on investment securities | 396 | 335 | 344 | 335 | 285 | |||||||||||||||
Interest on deposits in other banks | 200 | 129 | 80 | 92 | 73 | |||||||||||||||
Interest on other | 1 | 1 | 1 | 1 | 1 | |||||||||||||||
Total interest income | 12,281 | 12,054 | 11,477 | 10,783 | 10,007 | |||||||||||||||
Interest expense: | ||||||||||||||||||||
Interest on deposit accounts | 1,600 | 1,381 | 1,072 | 935 | 843 | |||||||||||||||
Interest on borrowings | 161 | 156 | 177 | 158 | 151 | |||||||||||||||
Total interest expense | 1,761 | 1,537 | 1,249 | 1,093 | 994 | |||||||||||||||
Net interest income | 10,520 | 10,517 | 10,228 | 9,690 | 9,013 | |||||||||||||||
Provision for loan losses | 440 | 238 | 527 | 845 | 610 | |||||||||||||||
Net interest income after provision for loan losses | 10,080 | 10,279 | 9,701 | 8,845 | 8,403 | |||||||||||||||
Noninterest income: | ||||||||||||||||||||
Service charges and fees on deposit accounts | 537 | 433 | 443 | 434 | 419 | |||||||||||||||
Gain on sales of investment securities | — | — | — | 15 | — | |||||||||||||||
Gain on sales of loans | 970 | 1,036 | 620 | 662 | 430 | |||||||||||||||
Bank-owned life insurance | 194 | 193 | 191 | 193 | 195 | |||||||||||||||
Other | 123 | 231 | 158 | 69 | 163 | |||||||||||||||
Total noninterest income | 1,824 | 1,893 | 1,412 | 1,373 | 1,207 | |||||||||||||||
Noninterest expense: | ||||||||||||||||||||
Salaries and employee benefits | 3,612 | 3,920 | 3,589 | 3,174 | 3,019 | |||||||||||||||
Occupancy and equipment | 949 | 923 | 894 | 901 | 917 | |||||||||||||||
Professional fees | 943 | 785 | 503 | 573 | 487 | |||||||||||||||
Data processing and software expense | 308 | 296 | 270 | 284 | 313 | |||||||||||||||
FDIC assessment fees | 213 | 179 | 132 | 137 | 131 | |||||||||||||||
Marketing | 279 | 293 | 211 | 200 | 205 | |||||||||||||||
Other assets owned expenses and write-downs | 24 | 9 | 55 | 75 | 24 | |||||||||||||||
Amortization of intangibles | 95 | 95 | 95 | 95 | 95 | |||||||||||||||
Telephone and communications | 107 | 98 | 100 | 97 | 81 | |||||||||||||||
Other | 516 | 431 | 452 | 439 | 462 | |||||||||||||||
Total noninterest expense | 7,046 | 7,029 | 6,301 | 5,975 | 5,734 | |||||||||||||||
Net income from operations | 4,858 | 5,143 | 4,812 | 4,243 | 3,876 | |||||||||||||||
Income tax expense | 1,667 | 1,768 | 1,639 | 1,430 | 1,303 | |||||||||||||||
Net income | $ | 3,191 | $ | 3,375 | $ | 3,173 | $ | 2,813 | $ | 2,573 | ||||||||||
Preferred stock dividends | $ | — | $ | — | $ | — | $ | — | $ | 38 | ||||||||||
Net income available to common stockholders | $ | 3,191 | $ | 3,375 | $ | 3,173 | $ | 2,813 | $ | 2,535 | ||||||||||
Basic earnings per share | $ | 0.28 | $ | 0.32 | $ | 0.30 | $ | 0.26 | $ | 0.24 | ||||||||||
Diluted earnings per share | $ | 0.27 | $ | 0.31 | $ | 0.29 | $ | 0.26 | $ | 0.23 | ||||||||||
Weighted average basic shares outstanding | 11,298,689 | 10,705,115 | 10,696,366 | 10,693,800 | 10,675,948 | |||||||||||||||
Weighted average diluted shares outstanding | 11,652,651 | 11,024,695 | 10,993,921 | 10,963,986 | 10,954,920 | |||||||||||||||
VERITEX HOLDINGS, INC. AND SUBSIDIARY | ||||||||||||||||||||
Reconciliation GAAP — NON GAAP - (Unaudited) | ||||||||||||||||||||
(In thousands, except share and per share data) | ||||||||||||||||||||
The following table reconciles, at the dates set forth below, total stockholders’ equity to tangible common equity and total assets to tangible assets: | ||||||||||||||||||||
December 31, 2016 |
September 30, 2016 |
June 30, 2016 |
March 31, 2016 |
December 31, 2015 |
||||||||||||||||
Tangible Common Equity | ||||||||||||||||||||
Total stockholders’ equity | $ | 238,888 | $ | 142,423 | $ | 138,850 | $ | 135,241 | $ | 132,046 | ||||||||||
Adjustments: | ||||||||||||||||||||
Preferred stock | — | — | — | — | — | |||||||||||||||
Goodwill | (26,865 | ) | (26,865 | ) | (26,865 | ) | (26,865 | ) | (26,865 | ) | ||||||||||
Intangible assets | (2,181 | ) | (2,257 | ) | (2,264 | ) | (2,347 | ) | (2,410 | ) | ||||||||||
Total tangible common equity | $ | 209,842 | $ | 113,301 | $ | 109,721 | $ | 106,029 | $ | 102,771 | ||||||||||
Tangible Assets | ||||||||||||||||||||
Total assets | $ | 1,408,350 | $ | 1,269,238 | $ | 1,215,497 | $ | 1,130,480 | $ | 1,039,600 | ||||||||||
Adjustments: | ||||||||||||||||||||
Goodwill | (26,865 | ) | (26,865 | ) | (26,865 | ) | (26,865 | ) | (26,865 | ) | ||||||||||
Intangible assets | (2,181 | ) | (2,257 | ) | (2,264 | ) | (2,347 | ) | (2,410 | ) | ||||||||||
Total tangible assets | $ | 1,379,304 | $ | 1,240,116 | $ | 1,186,368 | $ | 1,101,268 | $ | 1,010,325 | ||||||||||
Tangible Common Equity to Tangible Assets | 15.21 | % | 9.14 | % | 9.25 | % | 9.63 | % | 10.17 | % | ||||||||||
Common shares outstanding | 15,195 | 10,736 | 10,728 | 10,724 | 10,712 | |||||||||||||||
Book value per common share(1) | $ | 15.72 | $ | 13.27 | $ | 12.94 | $ | 12.61 | $ | 12.33 | ||||||||||
Tangible book value per common share(2) | $ | 13.81 | $ | 10.55 | $ | 10.23 | $ | 9.89 | $ | 9.59 | ||||||||||
(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) | ||||||||||||||||||||
The following table reconciles net income from operations to pre-tax, pre-provision income: | ||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
December 31, 2016 |
September 30, 2016 |
June 30, 2016 |
March 31, 2016 |
December 31, 2015 |
||||||||||||||||
Pre-Tax, Pre-Provision Income | ||||||||||||||||||||
Provision for loan losses | 440 | 238 | 527 | 845 | 610 | |||||||||||||||
Net income from operations | 4,858 | 5,143 | 4,812 | 4,243 | 3,876 | |||||||||||||||
Total pre-tax, pre-provision income(1) | $ | 5,298 | $ | 5,381 | $ | 5,339 | $ | 5,088 | $ | 4,486 | ||||||||||
(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.
The following table reconciles net income from operations to pre-tax, pre-provision income: | ||||||||
For the Year Ended | ||||||||
December 31, 2016 |
December 31, 2015 |
|||||||
Pre-Tax, Pre-Provision Income | ||||||||
Provision for loan losses | 2,050 | 868 | ||||||
Net income from operations | 19,056 | 12,907 | ||||||
Total pre-tax, pre-provision income(1) | $ | 21,106 | $ | 13,775 | ||||
(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) | |||||||||||||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||||||||||
December 31, 2016 | September 30, 2016 | December 31, 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 |
|||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||||
Total loans(1) | $ | 971,977 | $ | 11,684 | 4.78 | % | $ | 954,053 | $ | 11,589 | 4.83 | % | $ | 791,799 | $ | 9,648 | 4.83 | % | |||||||||||||||
Securities available for sale | 96,814 | 396 | 1.63 | 83,233 | 335 | 1.60 | 67,062 | 285 | 1.69 | ||||||||||||||||||||||||
Investment in subsidiary | 93 | 1 | 4.28 | 93 | 1 | 4.28 | 93 | 1 | 4.27 | ||||||||||||||||||||||||
Interest-earning deposits in financial institutions | 147,974 | 200 | 0.54 | 94,596 | 129 | 0.54 | 86,079 | 73 | 0.34 | ||||||||||||||||||||||||
Total interest-earning assets | 1,216,858 | 12,281 | 4.02 | 1,131,975 | 12,054 | 4.24 | 945,033 | 10,007 | 4.20 | ||||||||||||||||||||||||
Allowance for loan losses | (8,353 | ) | (8,115 | ) | (6,436 | ) | |||||||||||||||||||||||||||
Noninterest-earning assets | 98,379 | 95,901 | 88,382 | ||||||||||||||||||||||||||||||
Total assets | $ | 1,306,884 | $ | 1,219,761 | $ | 1,026,979 | |||||||||||||||||||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||
Interest-bearing deposits | $ | 784,778 | 1,600 | 0.81 | % | $ | 726,958 | $ | 1,381 | 0.76 | % | $ | 540,311 | 843 | 0.62 | % | |||||||||||||||||
Advances from FHLB | 38,328 | 58 | 0.60 | 38,363 | 59 | 0.61 | 20,748 | 55 | 1.05 | ||||||||||||||||||||||||
Other borrowings | 8,078 | 103 | 5.07 | 8,078 | 97 | 4.78 | 11,272 | 96 | 3.38 | ||||||||||||||||||||||||
Total interest-bearing liabilities | 831,184 | 1,761 | 0.84 | 773,399 | 1,537 | 0.79 | 572,331 | 994 | 0.69 | ||||||||||||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | 315,988 | 301,740 | 312,783 | ||||||||||||||||||||||||||||||
Other liabilities | 3,153 | 3,284 | 3,419 | ||||||||||||||||||||||||||||||
Total noninterest-bearing liabilities | 319,141 | 305,024 | 316,202 | ||||||||||||||||||||||||||||||
Stockholders’ equity | 156,559 | 141,338 | 138,446 | ||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,306,884 | $ | 1,219,761 | $ | 1,026,979 | |||||||||||||||||||||||||||
Net interest rate spread(2) | 3.18 | % | 3.45 | % | 3.51 | % | |||||||||||||||||||||||||||
Net interest income | $ | 10,520 | $ | 10,517 | $ | 9,013 | |||||||||||||||||||||||||||
Net interest margin(3) | 3.44 | % | 3.70 | % | 3.78 | % | |||||||||||||||||||||||||||
(1) Includes average outstanding balances of loans held for sale of
(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.
VERITEX HOLDINGS, INC. AND SUBSIDIARY | ||||||||||||||||||||||
Net Interest Margin - (Unaudited) | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
For the Year Ended December 31, | ||||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||||
Average Outstanding Balance |
Interest Earned/ Interest Paid |
Average Yield/ Rate |
Average Outstanding Balance |
Interest Earned/ Interest Paid |
Average Yield/ Rate |
|||||||||||||||||
Assets | ||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||
Total loans(1) | $ | 924,465 | $ | 44,681 | 4.83 | % | $ | 697,439 | $ | 33,680 | 4.83 | % | ||||||||||
Securities available for sale | 84,558 | 1,409 | 1.67 | % | 59,088 | 997 | 1.69 | % | ||||||||||||||
Investment in subsidiary | 93 | 2 | 2.15 | % | 93 | 2 | 2.15 | % | ||||||||||||||
Interest-earning deposits in financial institutions | 93,199 | 503 | 0.54 | % | 70,630 | 241 | 0.34 | % | ||||||||||||||
Total interest-earning assets | 1,102,315 | 46,595 | 4.23 | % | 827,250 | 34,920 | 4.22 | % | ||||||||||||||
Allowance for loan losses | (7,743 | ) | (6,419 | ) | ||||||||||||||||||
Noninterest-earning assets | 94,199 | 78,006 | ||||||||||||||||||||
Total assets | $ | 1,188,771 | $ | 898,837 | ||||||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||
Interest-bearing deposits | $ | 688,978 | 4,988 | 0.72 | % | $ | 475,034 | 2,918 | 0.61 | % | ||||||||||||
Advances from FHLB | 43,649 | 260 | 0.60 | % | 18,055 | 25 | 0.14 | % | ||||||||||||||
Other borrowings | 8,077 | 392 | 4.85 | % | 9,212 | 518 | 5.62 | % | ||||||||||||||
Total interest-bearing liabilities | 740,704 | 5,640 | 0.76 | % | 502,301 | 3,461 | 0.69 | % | ||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||
Noninterest-bearing deposits | 302,548 | 267,550 | ||||||||||||||||||||
Other liabilities | 2,937 | 2,408 | ||||||||||||||||||||
Total noninterest-bearing liabilities | 305,485 | 269,958 | ||||||||||||||||||||
Stockholders’ equity | 142,582 | 126,578 | ||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,188,771 | $ | 898,837 | ||||||||||||||||||
Net interest rate spread(2) | 3.47 | % | 3.53 | % | ||||||||||||||||||
Net interest income | $ | 40,955 | $ | 31,459 | ||||||||||||||||||
Net interest margin(3) | 3.72 | % | 3.80 | % | ||||||||||||||||||
(1) Includes average outstanding balances of loans held for sale of
(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