Veritex Holdings, inc. Amends Previously Reported Earnings for the Fourth Quarter and Year-Ended December 31, 2017 and Earnings Presentation
The measurement period for
In addition, the Company also early adopted ASU No. 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (ASU 2018-02). ASU 2018-02, issued in
About
Headquartered in
For more information, visit www.veritexbank.com
Media Contact:
972-349-6200
lrenfro@veritexbank.com
Investor Relations:
972-349-6132
scaudle@veritexbank.com
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)
(Dollars in thousands)
At and For the Three Months Ended | ||||||||||||||||||||
December 31, 2017 |
September 30, 2017 |
June 30, 2017 |
March 31, 2017 |
December 31, 2016 |
||||||||||||||||
Selected Financial Data: | ||||||||||||||||||||
Net income | $ | 3,257 | $ | 5,182 | $ | 3,615 | $ | 3,098 | $ | 3,190 | ||||||||||
Net income available to common stockholders | 3,257 | 5,140 | 3,615 | 3,098 | 3,190 | |||||||||||||||
Total assets | 2,945,583 | 2,494,861 | 1,508,589 | 1,522,015 | 1,408,507 | |||||||||||||||
Total loans(1) | 2,259,831 | 1,907,509 | 1,122,468 | 1,020,970 | 991,897 | |||||||||||||||
Provision for loan losses | 2,529 | 752 | 943 | 890 | 440 | |||||||||||||||
Allowance for loan losses | 12,808 | 10,492 | 9,740 | 8,816 | 8,524 | |||||||||||||||
Noninterest-bearing deposits(2) | 652,218 | 495,627 | 337,057 | 338,226 | 327,614 | |||||||||||||||
Total deposits(2) | 2,342,912 | 1,985,658 | 1,211,107 | 1,221,696 | 1,119,630 | |||||||||||||||
Total stockholders’ equity | 488,929 | 445,929 | 247,602 | 242,725 | 239,088 | |||||||||||||||
Summary Performance Ratios: | ||||||||||||||||||||
Return on average assets(3) | 0.48 | % | 0.94 | % | 0.97 | % | 0.83 | % | 0.97 | % | ||||||||||
Return on average equity(3) | 2.78 | 5.44 | 5.89 | 5.20 | 8.11 | |||||||||||||||
Net interest margin(4) | 4.24 | 3.78 | 3.53 | 3.21 | 3.44 | |||||||||||||||
Efficiency ratio(5) | 53.60 | 59.33 | 55.03 | 58.26 | 57.39 | |||||||||||||||
Noninterest expense to average assets(3) | 2.22 | 2.26 | 2.08 | 1.99 | 2.16 | |||||||||||||||
Summary Credit Quality Data: | ||||||||||||||||||||
Nonaccrual loans | $ | 13,905 | $ | 1,856 | $ | 1,514 | $ | 1,686 | $ | 941 | ||||||||||
Accruing loans 90 or more days past due(6) | 18 | 54 | 15 | 212 | 835 | |||||||||||||||
Other real estate owned | 449 | 738 | 493 | 998 | 662 | |||||||||||||||
Nonperforming assets to total assets | 0.49 | % | 0.11 | % | 0.13 | % | 0.19 | % | 0.17 | % | ||||||||||
Nonperforming loans to total loans | 0.62 | 0.10 | 0.14 | 0.19 | 0.18 | |||||||||||||||
Allowance for loan losses to total loans | 0.57 | 0.55 | 0.87 | 0.86 | 0.86 | |||||||||||||||
Net charge-offs to average loans outstanding | 0.01 | — | — | 0.06 | 0.03 | |||||||||||||||
Capital Ratios: | ||||||||||||||||||||
Total stockholders’ equity to total assets | 16.60 | % | 17.87 | % | 16.41 | % | 15.95 | % | 16.97 | % | ||||||||||
Tangible common equity to tangible assets | 11.12 | 12.76 | 14.77 | 14.31 | 15.23 | |||||||||||||||
Tier 1 capital to average assets | 12.92 | 15.26 | 15.09 | 14.65 | 16.82 | |||||||||||||||
Tier 1 capital to risk-weighted assets | 12.48 | 14.17 | 18.17 | 19.94 | 20.72 | |||||||||||||||
Common equity tier 1 (to risk weighted assets) | 11.41 | 13.65 | 17.92 | 19.66 | 20.42 | |||||||||||||||
Total capital to risk-weighted assets | 13.16 | 14.87 | 19.37 | 21.20 | 22.02 |
__________________________
- Total loans does not include loans held for sale and deferred fees. Loans held for sale were
$0.8 million at December 31, 2017,$2.2 million at September 30, 2017,$4.1 million at June 30, 2017,$1.9 million at March 31, 2017, and$5.2 million at December 31, 2016. Deferred fees were$28 thousand at December 31, 2017,$28 thousand at September 30, 2016,$40 thousand at June 30, 2017,$48 thousand at March 31, 2017, and$55 thousand at December 31, 2016. Total loans include branch assets held for sale of$26.3 million at December 31, 2017. - Total noninterest-bearings 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
$3.3 million of PCI loans acquired from Sovereign as ofDecember 31, 2017 andSeptember 30, 2017 . No PCI loans were considered non-performing loans as of December 31, 2017.
VERITEX HOLDINGS, INC. AND SUBSIDIARY
Condensed Consolidated Balance Sheets - (Unaudited)
(In thousands)
December 31, 2017 |
September 30, 2017 |
June 30, 2017 |
March 31, 2017 |
December 31, 2016 |
||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and due from banks | $ | 38,243 | $ | 21,879 | $ | 28,687 | $ | 23,021 | $ | 15,631 | ||||||||||
Interest bearing deposits in other banks | 110,801 | 129,497 | 144,459 | 262,714 | 219,160 | |||||||||||||||
Total cash and cash equivalents | 149,044 | 151,376 | 173,146 | 285,735 | 234,791 | |||||||||||||||
Investment securities | 228,117 | 204,788 | 134,708 | 138,698 | 102,559 | |||||||||||||||
Loans held for sale | 841 | 2,179 | 4,118 | 1,925 | 5,208 | |||||||||||||||
Loans, net | 2,220,682 | 1,896,989 | 1,112,688 | 1,012,106 | 983,318 | |||||||||||||||
Accrued interest receivable | 7,676 | 6,387 | 3,333 | 2,845 | 2,907 | |||||||||||||||
Bank-owned life insurance | 21,476 | 20,517 | 20,369 | 20,224 | 20,077 | |||||||||||||||
Bank premises, furniture and equipment, net | 75,251 | 40,129 | 17,978 | 17,521 | 17,413 | |||||||||||||||
Non-marketable equity securities | 13,732 | 10,283 | 7,407 | 7,375 | 7,366 | |||||||||||||||
Investment in unconsolidated subsidiary | 352 | 352 | 93 | 93 | 93 | |||||||||||||||
Other real estate owned | 449 | 738 | 493 | 998 | 662 | |||||||||||||||
Intangible assets, net | 20,441 | 10,531 | 2,171 | 2,161 | 2,181 | |||||||||||||||
Goodwill | 159,452 | 135,832 | 26,865 | 26,865 | 26,865 | |||||||||||||||
Other assets | 14,518 | 14,760 | 5,220 | 5,469 | 5,067 | |||||||||||||||
Branch assets held for sale | 33,552 | — | — | — | — | |||||||||||||||
Total assets | $ | 2,945,583 | $ | 2,494,861 | $ | 1,508,589 | $ | 1,522,015 | $ | 1,408,507 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest-bearing | $ | 612,830 | $ | 495,627 | $ | 337,057 | $ | 338,226 | $ | 327,614 | ||||||||||
Interest-bearing | 1,665,800 | 1,490,031 | 874,050 | 883,470 | 792,016 | |||||||||||||||
Total deposits | 2,278,630 | 1,985,658 | 1,211,107 | 1,221,696 | 1,119,630 | |||||||||||||||
Accounts payable and accrued expenses | 5,098 | 4,017 | 2,574 | 1,631 | 2,914 | |||||||||||||||
Accrued interest payable and other liabilities | 5,446 | 4,368 | 1,032 | 9,655 | 534 | |||||||||||||||
Advances from Federal Home Loan Bank | 71,164 | 38,200 | 38,235 | 38,271 | 38,306 | |||||||||||||||
Junior subordinated debentures | 11,702 | 11,702 | 3,093 | 3,093 | 3,093 | |||||||||||||||
Subordinated notes | 4,987 | 4,987 | 4,946 | 4,944 | 4,942 | |||||||||||||||
Other borrowings | 15,000 | — | — | — | — | |||||||||||||||
Branch liabilities held for sale | 64,627 | — | — | — | — | |||||||||||||||
Total liabilities | 2,456,654 | 2,048,932 | 1,260,987 | 1,279,290 | 1,169,419 | |||||||||||||||
Commitments and contingencies | ||||||||||||||||||||
Stockholders’ equity: | ||||||||||||||||||||
Common stock | 241 | 227 | 152 | 152 | 152 | |||||||||||||||
Additional paid-in capital | 445,517 | 404,900 | 211,901 | 211,512 | 211,173 | |||||||||||||||
Retained earnings | 44,627 | 41,143 | 36,003 | 32,388 | 29,290 | |||||||||||||||
Unallocated Employee Stock Ownership Plan shares | (106 | ) | (209 | ) | (209 | ) | (209 | ) | (209 | ) | ||||||||||
Accumulated other comprehensive (loss) | (1,280 | ) | (62 | ) | (175 | ) | (1,048 | ) | (1,248 | ) | ||||||||||
Treasury stock, 10,000 shares at cost | (70 | ) | (70 | ) | (70 | ) | (70 | ) | (70 | ) | ||||||||||
Total stockholders’ equity | 488,929 | 445,929 | 247,602 | 242,725 | 239,088 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,945,583 | $ | 2,494,861 | $ | 1,508,589 | $ | 1,522,015 | $ | 1,408,507 |
VERITEX HOLDINGS, INC. AND SUBSIDIARY
Condensed Consolidated Statements of Income - (Unaudited)
(In thousands, except per share data)
For the Year Ended | ||||||||
December 31, 2017 | December 31, 2016 | |||||||
Interest income: | ||||||||
Interest and fees on loans | $ | 73,795 | $ | 44,681 | ||||
Interest on investment securities | 3,462 | 1,409 | ||||||
Interest on deposits in other banks | 2,287 | 503 | ||||||
Interest on other | 8 | 2 | ||||||
Total interest income | 79,552 | 46,595 | ||||||
Interest expense: | ||||||||
Interest on deposit accounts | 9,878 | 4,988 | ||||||
Interest on borrowings | 1,166 | 652 | ||||||
Total interest expense | 11,044 | 5,640 | ||||||
Net interest income | 68,508 | 40,955 | ||||||
Provision for loan losses | 5,114 | 2,050 | ||||||
Net interest income after provision for loan losses | 63,394 | 38,905 | ||||||
Noninterest income: | ||||||||
Service charges and fees on deposit accounts | 2,502 | 1,846 | ||||||
Gain on sales of investment securities | 222 | 15 | ||||||
Gain on sales of loans and other assets owned | 3,141 | 3,288 | ||||||
Bank-owned life insurance | 753 | 771 | ||||||
Other | 958 | 583 | ||||||
Total noninterest income | 7,576 | 6,503 | ||||||
Noninterest expense: | ||||||||
Salaries and employee benefits | 20,828 | 14,332 | ||||||
Occupancy and equipment | 5,618 | 3,667 | ||||||
Professional fees | 5,672 | 2,804 | ||||||
Data processing and software expense | 2,217 | 1,158 | ||||||
FDIC assessment fees | 1,177 | 661 | ||||||
Marketing | 1,293 | 983 | ||||||
Other assets owned expenses and write-downs | 182 | 163 | ||||||
Amortization of intangibles | 964 | 380 | ||||||
Telephone and communications | 720 | 402 | ||||||
Other | 4,118 | 1,840 | ||||||
Total noninterest expense | 42,789 | 26,390 | ||||||
Net income from operations | 28,181 | 19,018 | ||||||
Income tax expense | 13,029 | 6,467 | ||||||
Net income | $ | 15,152 | $ | 12,551 | ||||
Preferred stock dividends | $ | 42 | $ | — | ||||
Net income available to common stockholders | $ | 15,110 | $ | 12,551 | ||||
Basic earnings per share | $ | 0.82 | $ | 1.16 | ||||
Diluted earnings per share | $ | 0.80 | $ | 1.13 | ||||
Weighted average basic shares outstanding | 18,404 | 10,849 | ||||||
Weighted average diluted shares outstanding | 18,810 | 11,153 |
VERITEX HOLDINGS, INC. AND SUBSIDIARY
Condensed Consolidated Statements of Income - (Unaudited)
(In thousands, except per share data)
For the Three Months Ended | ||||||||||||||||||||
December 31, 2017 |
September 30, 2017 |
June 30, 2017 |
March 31, 2017 |
December 31, 2016 |
||||||||||||||||
Interest income: | ||||||||||||||||||||
Interest and fees on loans | $ | 28,182 | $ | 20,706 | $ | 13,024 | $ | 11,883 | $ | 11,684 | ||||||||||
Interest on investment securities | 1,211 | 941 | 735 | 575 | 396 | |||||||||||||||
Interest on deposits in other banks | 500 | 629 | 548 | 610 | 200 | |||||||||||||||
Interest on other | 4 | 3 | — | 1 | 1 | |||||||||||||||
Total interest income | 29,897 | 22,279 | 14,307 | 13,069 | 12,281 | |||||||||||||||
Interest expense: | ||||||||||||||||||||
Interest on deposit accounts | 3,677 | 2,812 | 1,742 | 1,647 | 1,600 | |||||||||||||||
Interest on borrowings | 470 | 338 | 189 | 169 | 161 | |||||||||||||||
Total interest expense | 4,147 | 3,150 | 1,931 | 1,816 | 1,761 | |||||||||||||||
Net interest income | 25,750 | 19,129 | 12,376 | 11,253 | 10,520 | |||||||||||||||
Provision for loan losses | 2,529 | 752 | 943 | 890 | 440 | |||||||||||||||
Net interest income after provision for loan losses | 23,221 | 18,377 | 11,433 | 10,363 | 10,080 | |||||||||||||||
Noninterest income: | ||||||||||||||||||||
Service charges and fees on deposit accounts | 769 | 669 | 555 | 509 | 537 | |||||||||||||||
Gain on sales of investment securities | 17 | 205 | — | — | — | |||||||||||||||
Gain on sales of loans and other assets owned | 882 | 705 | 807 | 747 | 970 | |||||||||||||||
Bank-owned life insurance | 192 | 188 | 186 | 187 | 194 | |||||||||||||||
Other | 438 | 210 | 218 | 92 | 123 | |||||||||||||||
Total noninterest income | 2,298 | 1,977 | 1,766 | 1,535 | 1,824 | |||||||||||||||
Noninterest expense: | ||||||||||||||||||||
Salaries and employee benefits | 7,357 | 5,921 | 3,642 | 3,908 | 3,650 | |||||||||||||||
Occupancy and equipment | 1,996 | 1,596 | 1,015 | 1,011 | 949 | |||||||||||||||
Professional fees | 1,713 | 1,973 | 1,188 | 798 | 943 | |||||||||||||||
Data processing and software expense | 766 | 719 | 372 | 360 | 308 | |||||||||||||||
FDIC assessment fees | 116 | 410 | 393 | 258 | 213 | |||||||||||||||
Marketing | 388 | 436 | 225 | 244 | 279 | |||||||||||||||
Other assets owned expenses and write-downs | 73 | 71 | 13 | 25 | 24 | |||||||||||||||
Amortization of intangibles | 551 | 223 | 95 | 95 | 95 | |||||||||||||||
Telephone and communications | 282 | 230 | 106 | 102 | 107 | |||||||||||||||
Other | 1,793 | 943 | 733 | 649 | 516 | |||||||||||||||
Total noninterest expense | 15,035 | 12,522 | 7,782 | 7,450 | 7,084 | |||||||||||||||
Net income from operations | 10,484 | 7,832 | 5,417 | 4,448 | 4,820 | |||||||||||||||
Income tax expense | 7,227 | 2,650 | 1,802 | 1,350 | 1,630 | |||||||||||||||
Net income | $ | 3,257 | $ | 5,182 | $ | 3,615 | $ | 3,098 | $ | 3,190 | ||||||||||
Preferred stock dividends | $ | — | $ | 42 | $ | — | $ | — | $ | — | ||||||||||
Net income available to common stockholders | $ | 3,257 | $ | 5,140 | $ | 3,615 | $ | 3,098 | $ | 3,190 | ||||||||||
Basic earnings per share | $ | 0.14 | $ | 0.26 | $ | 0.24 | $ | 0.20 | $ | 0.28 | ||||||||||
Diluted earnings per share | $ | 0.14 | $ | 0.25 | $ | 0.23 | $ | 0.20 | $ | 0.27 | ||||||||||
Weighted average basic shares outstanding | 23,124 | 19,976 | 15,211 | 15,200 | 11,299 | |||||||||||||||
Weighted average diluted shares outstanding | 23,524 | 20,392 | 15,637 | 15,632 | 11,653 |
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 diluted earnings per share, core efficiency ratio and core net interest margin:
For the Three Months Ended | |||||||||||||||||||||
December 31, 2017 |
September 30, 2017 |
June 30, 2017 |
March 31, 2017 |
December 31, 2016 |
|||||||||||||||||
Net interest income (as reported) | $ | 25,750 | $ | 19,129 | $ | 12,376 | $ | 11,253 | $ | 10,520 | |||||||||||
Adjustment: | |||||||||||||||||||||
Income recognized on acquired loans | 2,955 | 637 | 135 | 55 | 61 | ||||||||||||||||
Core net interest income | 22,795 | 18,492 | 12,241 | 11,198 | 10,459 | ||||||||||||||||
Provision for loan losses (as reported) | 2,529 | 752 | 943 | 890 | 440 | ||||||||||||||||
Noninterest income (as reported) | 2,298 | 1,977 | 1,766 | 1,535 | 1,824 | ||||||||||||||||
Noninterest expense (as reported) | 15,035 | 12,522 | 7,782 | 7,450 | 7,084 | ||||||||||||||||
Adjustment: | |||||||||||||||||||||
Merger and acquisition ("M&A") costs | (1,018 | ) | (1,391 | ) | (193 | ) | (89 | ) | (279 | ) | |||||||||||
Core noninterest expense | 14,017 | 11,131 | 7,589 | 7,361 | 6,805 | ||||||||||||||||
Core net income from operations | 8,547 | 8,586 | 5,475 | 4,482 | 5,038 | ||||||||||||||||
Income tax expense (as reported) |
7,227 | 2,650 | 1,802 | 1,350 | 1,630 | ||||||||||||||||
Adjustments: | |||||||||||||||||||||
Tax impact of adjustments | (678 | ) | 264 | 20 | 12 | 76 | |||||||||||||||
Tax Act re-measurement | (3,051 | ) | — | — | — | — | |||||||||||||||
Other M&A discrete tax items | (398 | ) | — | — | — | — | |||||||||||||||
Core income tax expense | 3,100 | 2,914 | 1,822 | 1,362 | 1,706 | ||||||||||||||||
Core net income | $ | 5,447 | $ | 5,672 | $ | 3,653 | $ | 3,120 | $ | 3,332 | |||||||||||
Preferred stock dividends (as reported) | — | 42 | — | — | — | — | |||||||||||||||
Core net income available to common stockholders | $ | 5,447 | $ | 5,630 | $ | 3,653 | $ | 3,120 | $ | 3,332 | |||||||||||
Weighted average diluted shares outstanding |
23,524 | 20,392 | 15,637 | 15,632 | 11,653 | ||||||||||||||||
Diluted earnings per share (as reported) | 0.14 | 0.25 | 0.23 | 0.20 | 0.27 | ||||||||||||||||
Core diluted earnings per share(1) | 0.23 | 0.28 | 0.23 | 0.20 | 0.29 | ||||||||||||||||
Efficiency Ratio | |||||||||||||||||||||
Efficiency ratio (as reported) | 53.60 | % | 59.33 | % | 55.03 | % | 58.26 | % | 57.39 | % | |||||||||||
Core efficiency ratio(2) | 55.86 | % | 54.38 | % | 54.18 | % | 57.81 | % | 55.40 | % | |||||||||||
Net Interest Margin | |||||||||||||||||||||
Net interest margin (as reported) | 4.24 | % | 3.78 | % | 3.53 | % | 3.21 | % | 3.44 | % | |||||||||||
Core net interest margin(3) | 3.75 | % | 3.66 | % | 3.49 | % | 3.19 | % | 3.42 | % |
___________________________
- 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, merger and acquisition costs, 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.
- We calculate core efficiency ratio as core noninterest expense divided by the sum of core net interest income and noninterest income (as reported).
- Core net interest margin is equal to core net interest income divided by average interest-earning 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, GAAP net income available to common stockholders to core (non-GAAP) net income available to common stockholders, core diluted earnings per share, core efficiency ratio and core net interest margin:
For the Years Ended | ||||||||
December 31, 2017 |
December 31, 2016 |
|||||||
Net interest income (as reported) | $ | 68,508 | $ | 40,955 | ||||
Adjustment: | ||||||||
Income recognized on acquired loans | 3,782 | 425 | ||||||
Core net interest income | 64,726 | 40,530 | ||||||
Provision for loan losses (as reported) | 5,114 | 2,050 | ||||||
Noninterest income (as reported) | 7,576 | 6,503 | ||||||
Noninterest expense (as reported) | 42,789 | 26,390 | ||||||
Adjustment: | ||||||||
Merger and acquisition costs | (2,691 | ) | (472 | ) | ||||
Core noninterest expense | 40,098 | 25,918 | ||||||
Core net income from operations | 27,090 | 19,065 | ||||||
Income tax expense (as reported) |
13,029 | 6,467 | ||||||
Adjustment: | ||||||||
Tax impact of adjustments | (382 | ) | 16 | |||||
Tax Act re-measurement | (3,051 | ) | — | |||||
Other M&A discrete tax items | (398 | ) | — | |||||
Core income tax expense | 9,198 | 6,483 | ||||||
Core net income | $ | 17,892 | $ | 12,582 | ||||
Preferred stock dividends (as reported) | 42 | — | ||||||
Core net income available to common stockholders | $ | 17,850 | $ | 12,582 | ||||
Weighted average diluted shares outstanding | 18,810 | 11,153 | ||||||
Diluted earnings per share (as reported) | 0.80 | 1.13 | ||||||
Core diluted earnings per share | 0.95 | 1.13 | ||||||
Efficiency Ratio | ||||||||
Efficiency ratio (as reported) | 56.24 | % | 55.61 | % | ||||
Core efficiency ratio | 55.46 | % | 55.11 | % | ||||
Net Interest Margin | ||||||||
Net interest margin (as reported) | 3.77 | % | 3.72 | % | ||||
Core net interest margin | 3.56 | % | 3.68 | % |
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:
December 31, 2017 |
September 30, 2017 |
June 30, 2017 |
March 31, 2017 |
December 31, 2016 |
||||||||||||||||
Tangible Common Equity | ||||||||||||||||||||
Total stockholders’ equity | $ | 488,929 | $ | 445,929 | $ | 247,602 | $ | 242,725 | $ | 239,088 | ||||||||||
Adjustments: | ||||||||||||||||||||
Goodwill | (159,452 | ) | (135,832 | ) | (26,865 | ) | (26,865 | ) | (26,865 | ) | ||||||||||
Intangible assets(1) | (22,165 | ) | (10,531 | ) | (2,171 | ) | (2,161 | ) | (2,181 | ) | ||||||||||
Total tangible common equity | $ | 307,312 | $ | 299,566 | $ | 218,566 | $ | 213,699 | $ | 210,042 | ||||||||||
Tangible Assets | ||||||||||||||||||||
Total assets | $ | 2,945,583 | $ | 2,494,861 | $ | 1,508,589 | $ | 1,522,015 | $ | 1,408,507 | ||||||||||
Adjustments: | ||||||||||||||||||||
Goodwill | (159,452 | ) | (135,832 | ) | (26,865 | ) | (26,865 | ) | (26,865 | ) | ||||||||||
Intangible assets(1) | (22,165 | ) | (10,531 | ) | (2,171 | ) | (2,161 | ) | (2,181 | ) | ||||||||||
Total tangible assets | $ | 2,763,966 | $ | 2,348,498 | $ | 1,479,553 | $ | 1,492,989 | $ | 1,379,461 | ||||||||||
Tangible Common Equity to Tangible Assets(2) | 11.12 | % | 12.76 | % | 14.77 | % | 14.31 | % | 15.23 | % | ||||||||||
Common shares outstanding | 24,110 | 22,644 | 15,233 | 15,229 | 15,195 | |||||||||||||||
Book value per common share(3) | $ | 20.28 | $ | 19.69 | $ | 16.25 | $ | 15.94 | $ | 15.73 | ||||||||||
Tangible book value per common share(4) | $ | 12.75 | $ | 13.23 | $ | 14.35 | $ | 14.03 | $ | 13.82 |
___________________________
- Intangible assets as of
December 31, 2017 include branch intangible assets held for sale of$1.7 million . - 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.
- 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.
- 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 | |||||||||||||||||||||||||||||||||
December 31, 2017 | September 30, 2017 | December 31, 2016 | |||||||||||||||||||||||||||||||
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)(4) | $ | 2,030,587 | $ | 28,182 | 5.51 | % | $ | 1,643,077 | $ | 20,706 | 5.00 | % | $ | 971,977 | $ | 11,684 | 4.78 | % | |||||||||||||||
Securities available for sale | 233,244 | 1,211 | 2.06 | 191,265 | 941 | 1.95 | 96,814 | 396 | 1.63 | ||||||||||||||||||||||||
Interest-earning deposits in financial institutions | 145,099 | 500 | 1.37 | 171,461 | 629 | 1.46 | 147,974 | 200 | 0.54 | ||||||||||||||||||||||||
Investment in subsidiary | 352 | 4 | 4.51 | 265 | 3 | 4.49 | 93 | 1 | 4.28 | ||||||||||||||||||||||||
Total interest-earning assets | 2,409,282 | 29,897 | 4.92 | 2,006,068 | 22,279 | 4.41 | 1,216,858 | 12,281 | 4.02 | ||||||||||||||||||||||||
Allowance for loan losses | (10,658 | ) | (9,910 | ) | (8,353 | ) | |||||||||||||||||||||||||||
Noninterest-earning assets(4) | 292,664 | 202,352 | 98,379 | ||||||||||||||||||||||||||||||
Total assets | $ | 2,691,288 | $ | 2,198,510 | $ | 1,306,884 | |||||||||||||||||||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||
Interest-bearing deposits(4) | $ | 1,569,950 | 3,677 | 0.93 | % | $ | 1,294,187 | $ | 2,812 | 0.86 | % | $ | 784,778 | 1,600 | 0.81 | % | |||||||||||||||||
Advances from FHLB | 74,589 | 213 | 1.13 | 53,222 | 160 | 1.19 | 38,328 | 58 | 0.60 | ||||||||||||||||||||||||
Other borrowings | 25,398 | 257 | 4.01 | 13,793 | 178 | 5.12 | 8,078 | 103 | 5.07 | ||||||||||||||||||||||||
Total interest-bearing liabilities | 1,669,937 | 4,147 | 0.98 | 1,361,202 | 3,150 | 0.92 | 831,184 | 1,761 | 0.84 | ||||||||||||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||||||||||||||
Noninterest-bearing deposits(4) | 542,918 | 452,426 | 315,988 | ||||||||||||||||||||||||||||||
Other liabilities(4) | 13,819 | 6,898 | 3,153 | ||||||||||||||||||||||||||||||
Total noninterest-bearing liabilities | 556,737 | 459,324 | 319,141 | ||||||||||||||||||||||||||||||
Stockholders’ equity | 464,614 | 377,984 | 156,559 | ||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,691,288 | $ | 2,198,510 | $ | 1,306,884 | |||||||||||||||||||||||||||
Net interest rate spread(2) | 3.94 | % | 3.49 | % | 3.18 | % | |||||||||||||||||||||||||||
Net interest income | $ | 25,750 | $ | 19,129 | $ | 10,520 | |||||||||||||||||||||||||||
Net interest margin(3) | 4.24 | % | 3.78 | % | 3.44 | % |
___________________________
- Includes average outstanding balances of loans held for sale of
$3,155 ,$1,553 , and$5,517 for three months endedDecember 31, 2017 , September 30, 2017, and December 31, 2016, 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.
- 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.
VERITEX HOLDINGS, INC. AND SUBSIDIARY
Net Interest Margin - (Unaudited)
(In thousands, except percentages)
For the Year Ended December 31, | ||||||||||||||||||||||
2017 | 2016 | |||||||||||||||||||||
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)(2) | $ | 1,441,295 | $ | 73,795 | 5.12 | % | $ | 924,465 | $ | 44,681 | 4.83 | % | ||||||||||
Securities available for sale | 170,253 | 3,462 | 2.03 | % | 84,558 | 1,409 | 1.67 | % | ||||||||||||||
Interest-earning deposits in financial institutions | 202,314 | 2,287 | 1.13 | % | 93,199 | 503 | 0.54 | % | ||||||||||||||
Investment in subsidiary | 202 | 8 | 3.96 | % | 93 | 2 | 2.15 | % | ||||||||||||||
Total interest-earning assets | 1,814,064 | 79,552 | 4.39 | % | 1,102,315 | 46,595 | 4.23 | % | ||||||||||||||
Allowance for loan losses | (9,567 | ) | (7,743 | ) | ||||||||||||||||||
Noninterest-earning assets(2) | 176,471 | 94,199 | ||||||||||||||||||||
Total assets | $ | 1,980,968 | $ | 1,188,771 | ||||||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||
Interest-bearing deposits(2) | $ | 1,151,033 | 9,878 | 0.86 | % | $ | 688,978 | 4,988 | 0.72 | % | ||||||||||||
Advances from FHLB | 51,196 | 531 | 1.04 | % | 43,649 | 260 | 0.60 | % | ||||||||||||||
Other borrowings | 13,878 | 635 | 4.58 | % | 8,077 | 392 | 4.85 | % | ||||||||||||||
Total interest-bearing liabilities | 1,216,107 | 11,044 | 0.91 | % | 740,704 | 5,640 | 0.76 | % | ||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||
Noninterest-bearing deposits(2) | 425,124 | 302,548 | ||||||||||||||||||||
Other liabilities(2) | 6,802 | 2,937 | ||||||||||||||||||||
Total noninterest-bearing liabilities | 431,926 | 305,485 | ||||||||||||||||||||
Stockholders’ equity | 332,935 | 142,582 | ||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,980,968 | $ | 1,188,771 | ||||||||||||||||||
Net interest rate spread | 3.48 | % | 3.47 | % | ||||||||||||||||||
Net interest income | $ | 68,508 | $ | 40,955 | ||||||||||||||||||
Net interest margin | 3.77 | % | 3.72 | % |
___________________________
- Includes average outstanding balances of loans held for sale of
$2,493 and$5,078 for the twelve months endedDecember 31, 2017 and 2016, respectively.
- 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.