Veritex Holdings, Inc. Reports Record Fourth Quarter Earnings and Strong Organic Growth
Full Year 2014 Highlights
-
Full year 2014 diluted earnings per common share increased 26.3% to
$0.72 compared to the full year 2013.
-
Average loan balances increased at an annual rate of 25.9% as the bank continues to produce strong organic loan growth.
-
Average noninterest deposits increased
$42.5 million or 22.5% as the bank continues to successfully generate new and expand full banking relationships with its existing customers.
-
Minimal direct exposure to the energy sector as loans secured by oil and gas assets were
$6.2 million at December 31, 2014, or 1.0% of total loans, all of such loans are well collateralized with strong guarantor support.
2014 Fourth Quarter Highlights
-
Completed initial public offering of 3.1 million shares, raising approximately
$40.0 million , in October 2014.
-
Diluted earnings per common share increased slightly to
$0.18 compared to the fourth quarter 2013 despite an additional 3.6 million common shares outstanding in the fourth quarter of 2014.
-
Net income increased
$694,000 or 69.7% to$1.7 million compared to the fourth quarter 2013.
-
Total loans increased
$108.0 million or 21.8% to$603.3 million compared to December 31, 2013.
-
Noninterest deposits increased
$32.1 million or 14.7% to$251.1 million compared to December 31, 2013.
-
Continued strong asset quality as reflected by nonperforming assets to total assets of 0.07%, net charge-offs to average loans outstanding of 0.04% and other real estate owned of
$105,000 as of and for the quarter ending December 31, 2014.
-
Total deposits increased
$64.8 million or 11.3% to$638.7 million compared to December 31, 2013.
"The fourth quarter was another record quarter for
Results of operations for the three months ended December 31, 2014
For the three months ended December 31, 2014, net income and net income available to common stockholders was
Return on average assets ("ROA") and return on average common equity ("ROE") for the three months ended December 31, 2014 were 0.86% and 6.21%, respectively, compared to 0.63% and 5.97% for the same period in 2013 and 0.74% and 7.16% for the three months ended September 30, 2014. The increase in ROA was the result of continued growth in net income from new customers, expansion of existing customer relationships and gains in efficiencies from our operating platform. The decrease in ROE is the result of a
Net interest income before provision for loan losses for the three months ended December 31, 2014 was
Noninterest income for the three months ended December 31, 2014 was
Noninterest expense increased
Financial Condition
Loans (excluding held for sale and deferred loan fees) at December 31, 2014 were
Deposits at December 31, 2014 were
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, 2014 was
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 tangible book value per common share and the tangible common equity to tangible assets ratio. The Company has included in this release information related to these non-GAAP financial measures for the applicable periods presented. Please refer to the notes to the "Selected Financial Data" table and the table in the table captioned "Reconciliation GAAP —NON-GAAP (Unaudited)" 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, as well as projections of 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 our performance goals. These and various other factors are discussed in the Company's Final Prospectus filed pursuant to Rule 424(b)(4) and other reports and statements the Company has filed with the
VERITEX HOLDINGS, INC. AND SUBSIDIARY | |||||
Consolidated Financial Highlights (Unaudited) | |||||
(In thousands) | |||||
As of and for the Three Months Ended | |||||
December 31, | September 30, | June 30, | March 31, | December 31, | |
2014 | 2014 | 2014 | 2014 | 2013 | |
Selected Financial Data: | |||||
Net income | $ 1,690 | $ 1,359 | $ 1,198 | $ 958 | $ 996 |
Net income available to common stockholders | 1,670 | 1,339 | 1,178 | 938 | 976 |
Total assets | 802,286 | 745,344 | 710,382 | 670,351 | 664,971 |
Total loans(1) | 603,310 | 581,338 | 540,990 | 500,091 | 495,270 |
Allowance for loan losses | 5,981 | 5,880 | 5,516 | 5,215 | 5,018 |
Noninterest-bearing deposits | 251,124 | 242,688 | 236,198 | 216,431 | 218,990 |
Total deposits | 638,743 | 644,543 | 611,174 | 572,684 | 573,938 |
Total stockholders' equity | 113,312 | 75,603 | 74,244 | 72,706 | 66,239 |
Summary Performance Ratios: | |||||
Return on average assets(2) | 0.86% | 0.74% | 0.71% | 0.59% | 0.63% |
Return on average equity(2) | 6.21 | 7.16 | 6.49 | 5.41 | 5.97 |
Net interest margin(3) | 3.74 | 3.95 | 3.92 | 3.79 | 3.90 |
Efficiency ratio(4) | 62.49 | 65.87 | 65.98 | 72.47 | 67.93 |
Noninterest expense to average assets(2) | 2.38 | 2.63 | 2.70 | 2.77 | 2.65 |
Summary Credit Quality Data: | |||||
Nonaccrual loans | $ 436 | $ 445 | $ 107 | $ 156 | $ 1,117 |
Accruing loans 90 or more days past due | 0 | 3 | 390 | 6 | 9 |
Other real estate owned | 105 | 1,434 | 2,494 | 2,766 | 1,797 |
Nonperforming assets to total assets | 0.07% | 0.25% | 0.42% | 0.44% | 0.44% |
Nonperforming loans to total loans | 0.07 | 0.08 | 0.09 | 0.03 | 0.23 |
Allowance for loan losses to total loans | 0.99 | 1.01 | 1.02 | 1.04 | 1.01 |
Net charge-offs to average loans outstanding | 0.04 | 0.01 | 0.02 | 0.01 | 0.00 |
Capital Ratios: | |||||
Total stockholders' equity to total assets | 14.11% | 10.14% | 10.45% | 10.85% | 9.96% |
Tangible common equity to tangible assets(5) | 10.86 | 6.50 | 6.62 | 6.78 | 5.82 |
Tier 1 capital to average assets(4) | 12.66 | 8.28 | 8.66 | 8.64 | 8.06 |
Tier 1 capital to risk-weighted assets | 15.45 | 10.04 | 10.44 | 10.97 | 9.75 |
Total capital to risk-weighted assets | 17.21 | 11.90 | 12.35 | 12.98 | 11.74 |
(1) Total loans does not include loans held for sale and deferred fees. Loans held for sale were $8.9 million as of December 31, 2014, $3.5 million as of September 30, 2014, $6.3 million as of June 30, 2014, $2.5 million as of March 31, 2014, and $2.1 million as of December 31, 2013. Deferred fees were $51,000 as of December 31, 2014, $60,000 as of September 30, 2014, $71,000 as of June 30, 2014, $81,000 as of March 31, 2014, and $94,000 as of December 31, 2013. | |||||
(2) Except as otherwise indicated in this footnote, 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, as of 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) | |||||
December 31, | September 30, | June 30, | March 31, | December 31, | |
2014 | 2014 | 2014 | 2014 | 2013 | |
Assets | |||||
Cash and due from banks | $ 9,223 | $ 9,441 | $ 10,038 | $ 10,097 | $ 8,484 |
Interest bearing deposits in other banks | 84,028 | 58,292 | 56,512 | 62,058 | 68,162 |
Total cash and cash equivalents | 93,251 | 67,733 | 66,550 | 72,155 | 76,646 |
Investment securities | 45,127 | 47,497 | 50,547 | 51,215 | 45,604 |
Loans held for sale | 8,858 | 3,488 | 6,342 | 2,520 | 2,051 |
Loans, net | 597,278 | 575,398 | 535,403 | 494,794 | 490,158 |
Accrued interest receivable | 1,542 | 1,351 | 1,359 | 1,252 | 1,351 |
Bank-owned life insurance | 17,822 | 10,731 | 10,647 | 10,564 | 10,475 |
Bank premises, furniture and equipment, net | 11,150 | 11,235 | 11,303 | 9,814 | 9,952 |
Non-marketable equity securities | 4,139 | 3,115 | 2,959 | 2,715 | 2,714 |
Investment in subsidiary | 93 | 93 | 93 | 93 | 93 |
Other real estate owned | 105 | 1,434 | 2,494 | 2,766 | 1,797 |
Intangible assets | 1,261 | 1,337 | 1,413 | 1,490 | 1,567 |
Goodwill | 19,148 | 19,148 | 19,148 | 19,148 | 19,148 |
Other assets | 2,512 | 2,784 | 2,124 | 1,825 | 3,415 |
Total assets | $ 802,286 | $ 745,344 | $ 710,382 | $ 670,351 | $ 664,971 |
Liabilities and Stockholders' Equity | |||||
Deposits: | |||||
Noninterest-bearing | $ 251,124 | $ 242,688 | $ 236,198 | $ 216,431 | $ 218,990 |
Interest-bearing | 387,619 | 401,855 | 374,976 | 356,253 | 354,948 |
Total deposits | 638,743 | 644,543 | 611,174 | 572,684 | 573,938 |
Accounts payable and accrued expenses | 1,582 | 1,327 | 1,195 | 1,352 | 1,214 |
Accrued interest payable and other liabilities | 575 | 798 | 696 | 537 | 508 |
Advances from Federal Home Loan Bank | 40,000 | 15,000 | 15,000 | 15,000 | 15,000 |
Other borrowings | 8,074 | 8,073 | 8,073 | 8,072 | 8,072 |
Total liabilities | 688,974 | 669,741 | 636,138 | 597,645 | 598,732 |
Commitments and contingencies | |||||
Stockholders' equity: | |||||
Preferred stock | 8,000 | 8,000 | 8,000 | 8,000 | 8,000 |
Common stock | 95 | 64 | 64 | 64 | 58 |
Additional paid-in capital | 97,469 | 61,513 | 61,419 | 61,356 | 55,303 |
Retained earnings | 8,047 | 6,378 | 5,038 | 3,860 | 2,922 |
Accumulated other comprehensive income | 172 | 119 | 194 | (4) | 26 |
Unallocated Employee Stock Ownership Plan shares; 36,935 shares at December 31, 2014, September 30, 2014, June 30, 3014 and 46,082 shares as of March 31, 2014 | (401) | (401) | (401) | (500) | — |
Less: Treasury stock, 10,000 shares at cost | (70) | (70) | (70) | (70) | (70) |
Total stockholders' equity | 113,312 | 75,603 | 74,244 | 72,706 | 66,239 |
Total liabilities and stockholders' equity | $ 802,286 | $ 745,344 | $ 710,382 | $ 670,351 | $ 664,971 |
VERITEX HOLDINGS, INC. AND SUBSIDIARY | |||||
Condensed Consolidated Statements of Income (Unaudited) | |||||
(In thousands, except per share amounts) | |||||
Three Months Ended | |||||
December 31, | September 30, | June 30, | March 31, | December 31, | |
2014 | 2014 | 2014 | 2014 | 2013 | |
Interest income: | |||||
Interest and fees on loans | $ 7,335 | $ 7,183 | $ 6,566 | $ 6,152 | $ 6,073 |
Interest on investment securities | 209 | 207 | 206 | 216 | 183 |
Interest on deposits in other banks | 63 | 43 | 40 | 36 | 35 |
Interest on other | — | 1 | 1 | 1 | 1 |
Total interest income | 7,607 | 7,434 | 6,813 | 6,405 | 6,292 |
Interest expense: | |||||
Interest on deposit accounts | 652 | 609 | 570 | 587 | 591 |
Interest on borrowings | 123 | 123 | 123 | 132 | 51 |
Total interest expense | 775 | 732 | 693 | 719 | 642 |
Net interest income | 6,832 | 6,702 | 6,120 | 5,686 | 5,650 |
Provision for loan losses | 326 | 420 | 425 | 252 | 500 |
Net interest income after provision for loan losses | 6,506 | 6,282 | 5,695 | 5,434 | 5,150 |
Noninterest income: | |||||
Service charges on deposit accounts | 223 | 213 | 190 | 206 | 189 |
Gain on sales of investment securities | — | — | — | 34 | — |
Gain on sales of loans held for sale | 155 | 241 | 168 | 77 | 102 |
Gain on sales of other real estate owned | 6 | (33) | 24 | 13 | (21) |
Bank-owned life insurance | 111 | 105 | 103 | 108 | 110 |
Other | 161 | 104 | 155 | 132 | 185 |
Total noninterest income | 656 | 630 | 640 | 570 | 565 |
Noninterest expense: | |||||
Salaries and employee benefits | 2,444 | 2,755 | 2,196 | 2,642 | 2,408 |
Occupancy of bank premises | 445 | 497 | 474 | 446 | 430 |
Depreciation and amortization | 334 | 338 | 334 | 333 | 332 |
Data processing | 242 | 213 | 210 | 216 | 188 |
FDIC assessment fees | 105 | 99 | 109 | 108 | 93 |
Legal fees | 16 | 50 | 26 | 34 | 23 |
Other professional fees | 279 | 222 | 411 | 132 | 182 |
Advertising and promotions | 52 | 41 | 37 | 55 | 30 |
Utilities and telephone | 73 | 72 | 72 | 69 | 73 |
Other real estate owned expenses and write-downs | 24 | 53 | 108 | 26 | 39 |
Other | 665 | 490 | 483 | 473 | 411 |
Total noninterest expense | 4,679 | 4,830 | 4,460 | 4,534 | 4,209 |
Net income from operations | 2,483 | 2,082 | 1,875 | 1,470 | 1,506 |
Income tax expense | 793 | 723 | 677 | 512 | 510 |
Net income | $ 1,690 | $ 1,359 | $ 1,198 | $ 958 | $ 996 |
Preferred stock dividends | 20 | 20 | 20 | 20 | 20 |
Net income available to common stockholders | $ 1,670 | $ 1,339 | $ 1,178 | $ 938 | $ 976 |
Basic earnings per share | $ 0.18 | $ 0.21 | $ 0.19 | $ 0.15 | $ 0.17 |
Diluted earnings per share | $ 0.18 | $ 0.21 | $ 0.18 | $ 0.15 | $ 0.17 |
VERITEX HOLDINGS, INC. AND SUBSIDIARY | ||
Condensed Consolidated Statements of Income (Unaudited) | ||
(In thousands, except per share amounts) | ||
Years Ended December 31, | ||
2014 | 2013 | |
Interest income: | ||
Interest and fees on loans | $ 27,236 | $ 22,755 |
Interest on investment securities | 839 | 613 |
Interest on deposits in other banks | 182 | 132 |
Interest on other | 2 | 2 |
Total interest income | 28,259 | 23,502 |
Interest expense: | ||
Interest on deposit accounts | 2,421 | 2,207 |
Interest on borrowings | 498 | 254 |
Total interest expense | 2,919 | 2,461 |
Net interest income | 25,340 | 21,041 |
Provision for loan losses | 1,423 | 1,883 |
Net interest income after provision for loan losses | 23,917 | 19,158 |
Noninterest income: | ||
Service charges on deposit accounts | 833 | 726 |
Gain on sales of investment securities | 34 | — |
Gain on sales of loans held for sale | 641 | 632 |
Gain on sales of other real estate owned | 10 | 20 |
Bank-owned life insurance | 427 | 385 |
Other | 551 | 628 |
Total noninterest income | 2,496 | 2,391 |
Noninterest expense: | ||
Salaries and employee benefits | 10,037 | 9,084 |
Occupancy of bank premises | 1,863 | 1,694 |
Depreciation and amortization | 1,339 | 1,266 |
Data processing | 881 | 729 |
FDIC assessment fees | 421 | 378 |
Legal fees | 125 | 80 |
Other professional fees | 1,044 | 574 |
Advertising and promotions | 186 | 142 |
Utilities and telephone | 286 | 295 |
Other real estate owned expenses and write-downs | 210 | 399 |
Other | 2,111 | 1,723 |
Total noninterest expense | 18,503 | 16,364 |
Net income from operations | 7,910 | 5,185 |
Income tax expense | 2,705 | 1,777 |
Net income | $ 5,205 | $ 3,408 |
Preferred stock dividends | $ 80 | $ 60 |
Net income available to common stockholders | $ 5,125 | $ 3,348 |
Basic earnings per share | $ 0.73 | $ 0.58 |
Diluted earnings per share | $ 0.72 | $ 0.57 |
VERITEX HOLDINGS, INC. AND SUBSIDIARY | |||||
Reconciliation GAAP — NON GAAP (Unaudited) | |||||
(In thousands) | |||||
The following table reconciles, as of the dates set forth below, total stockholders' equity to tangible common equity and total assets to tangible assets: | |||||
Tangible Book Value Per Common Share | |||||
December 31, | September 30, | June 30, | March 31, | December 31, | |
2014 | 2014 | 2014 | 2014 | 2013 | |
Tangible Common Equity | |||||
Total stockholders' equity | $ 113,312 | $ 75,603 | $ 74,244 | $ 72,706 | $ 66,239 |
Adjustments: | |||||
Preferred stock | (8,000) | (8,000) | (8,000) | (8,000) | (8,000) |
Goodwill | (19,148) | (19,148) | (19,148) | (19,148) | (19,148) |
Intangible assets | (1,261) | (1,337) | (1,413) | (1,490) | (1,567) |
Total tangible common equity | $ 84,903 | $ 47,118 | $ 45,683 | $ 44,068 | $ 37,524 |
Tangible Assets | |||||
Total assets | $ 802,286 | $ 745,344 | $ 710,382 | $ 670,351 | $ 664,971 |
Adjustments: | |||||
Goodwill | (19,148) | (19,148) | (19,148) | (19,148) | (19,148) |
Intangible assets | (1,261) | (1,337) | (1,413) | (1,490) | (1,567) |
Total tangible assets | $ 781,877 | $ 724,859 | $ 689,821 | $ 649,713 | $ 644,256 |
Tangible Common Equity to Tangible Assets | 10.86% | 6.50% | 6.62% | 6.78% | 5.82% |
Common shares outstanding | 9,471 | 6,359 | 6,359 | 6,359 | 5,805 |
Book value per common share (1) | $ 11.12 | $ 10.63 | $ 10.42 | $ 10.18 | $ 10.03 |
Tangible book value per common share (2) | 8.96 | 7.41 | 7.18 | 6.93 | 6.46 |
(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. 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 | |||||||||
Net Interest Margin (Unaudited) | |||||||||
(In thousands) | |||||||||
For the Three Months Ended | |||||||||
December 31, 2014 | September 30, 2014 | December 31, 2013 | |||||||
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) | $ 599,813 | $ 7,335 | 4.85% | $ 565,465 | $ 7,183 | 5.04% | $ 475,492 | $ 6,073 | 5.07% |
Investment securities | 46,750 | 209 | 1.77 | 49,148 | 207 | 1.67 | 41,763 | 183 | 1.74 |
Investment in subsidiary | 93 | 0 | 0.00 | 93 | 1 | 4.27 | 93 | 1 | 4.27 |
Interest-bearing deposits in other banks | 78,611 | 63 | 0.32 | 58,027 | 43 | 0.29 | 59,260 | 35 | 0.23 |
Total interest-earning assets | 725,267 | 7,607 | 4.16 | 672,733 | 7,434 | 4.38 | 576,608 | 6,292 | 4.33 |
Allowance for loan losses | (5,906) | (5,665) | (4,686) | ||||||
Noninterest-earning assets | 60,649 | 60,668 | 57,144 | ||||||
Total assets | $ 780,010 | $ 727,736 | $ 629,066 | ||||||
Liabilities and Stockholders' Equity | |||||||||
Interest-bearing liabilities: | |||||||||
Interest-bearing deposits | $ 396,438 | $ 652 | 0.65% | $ 384,671 | $ 609 | 0.63% | $ 347,568 | $ 591 | 0.67% |
Advances from FHLB | 18,533 | 30 | 0.64 | 15,000 | 30 | 0.79 | 15,000 | 34 | 0.90 |
Other borrowings | 8,073 | 93 | 4.57 | 8,073 | 93 | 4.57 | 3,548 | 17 | 1.90 |
Total interest-bearing liabilities | 423,044 | 775 | 0.73 | 407,744 | 732 | 0.71 | 366,116 | 642 | 0.70 |
Noninterest-bearing liabilities: | |||||||||
Noninterest-bearing deposits | 246,868 | 242,728 | 195,246 | ||||||
Other liabilities | 2,171 | 1,965 | 1,620 | ||||||
Total noninterest-bearing liabilities | 249,039 | 244,693 | 196,866 | ||||||
Stockholders' equity | 107,927 | 75,299 | 66,084 | ||||||
Total liabilities and stockholders' equity | $ 780,010 | $ 727,736 | $ 629,066 | ||||||
Net interest rate spread(2) | 3.43% | 3.67% | 3.63% | ||||||
Net interest income | $ 6,832 | $ 6,702 | $ 5,650 | ||||||
Net interest margin(3) | 3.74% | 3.95% | 3.89% | ||||||
(1) Includes average outstanding balances of loans held for sale of $5,173, $3,367 and $1,912 for the three months ended December 31, 2014, September 30, 2014 and December 31, 2013, 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. |
VERITEX HOLDINGS, INC. AND SUBSIDIARY | ||||||
Net Interest Margin | ||||||
(In thousands) | ||||||
Years Ended December 31, | ||||||
2014 | 2013 | |||||
Average Outstanding Balance |
Interest Earned/ Interest Paid |
Average Yield/ Rate |
Average Outstanding Balance |
Interest Earned/ Interest Paid |
Average Yield/ Rate |
|
(Dollars in thousands) (Unaudited) | ||||||
Assets | ||||||
Interest-earning assets: | ||||||
Total loans(1) | $ 546,041 | $ 27,236 | 4.99% | $ 433,612 | $ 22,755 | 5.25% |
Investment securities | 49,058 | 839 | 1.71 | 37,066 | 613 | 1.65 |
Investment in subsidiary | 93 | 2 | 2.15 | 93 | 2 | 2.15 |
Interest-bearing deposits in other banks | 63,176 | 182 | 0.29 | 60,931 | 132 | 0.22 |
Total interest-earning assets | 658,368 | 28,259 | 4.29 | 531,702 | 23,502 | 4.42 |
Allowance for loan losses | (5,498) | (4,047) | ||||
Noninterest-earning assets | 60,168 | 56,411 | ||||
Total assets | $ 713,038 | $ 584,066 | ||||
Liabilities and Stockholders' Equity | ||||||
Interest-bearing liabilities: | ||||||
Interest-bearing deposits | $ 374,074 | $ 2,421 | 0.65% | $ 311,162 | $ 2,207 | 0.71% |
Advances from FHLB | 15,890 | 118 | 0.74 | 14,932 | 190 | 1.27 |
Other borrowings | 8,073 | 380 | 4.71 | 3,207 | 64 | 2.00 |
Total interest-bearing liabilities | 398,037 | 2,919 | 0.73 | 329,301 | 2,461 | 0.75 |
Noninterest-bearing liabilities: | ||||||
Noninterest-bearing deposits | 230,875 | 188,405 | ||||
Other liabilities | 1,783 | 1,714 | ||||
Total noninterest-bearing liabilities | 232,658 | 190,119 | ||||
Stockholders' equity | 82,343 | 64,646 | ||||
Total liabilities and stockholders' equity | $ 713,038 | $ 584,066 | ||||
Net interest rate spread(2) | 3.56% | 3.67% | ||||
Net interest income | $ 25,340 | $ 21,041 | ||||
Net interest margin(3) | 3.85% | 3.96% | ||||
(1) Includes average outstanding balances of loans held for sale of $3,569, and $2,185 for the twelve months ended December 31, 2014, and December 31, 2013, 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. |
CONTACT: Media Contact:LaVonda Renfro 972-349-6200 lrenfro@veritexbank.com Investor Relations: 972-349-6200 scaudle@veritexbank.com