Veritex Holdings, Inc. Reports Third Quarter Financial Results
Mr. Holland also said, “The quality of our loan portfolio continues to be strong as evidenced by solid credit metrics. As noted in past quarters, we continue to see pressure on pricing of new loans, however we believe our net interest margin will hold within the range we have seen over the past several quarters.”
“In addition to our loan growth,” Mr. Holland added, “I am excited about our success in building deposit relationships. Average deposits increased from the prior quarter with the addition of IBT and growth in core customers. We’ve also taken advantage of low cost wholesale deposits and reduced our cost of funds.”
Mr. Holland continued, “New commitments continue to out-pace our expectations. We anticipate continued growth in loans and deposits during the fourth quarter. We have a lot to be excited about.”
Financial Highlights
- Successfully closed the acquisition of
IBT Bancorp, Inc. (“IBT”) onJuly 1, 2015 and fully integrated systems and operations onAugust 22, 2015 . - Net income increased
$1.2 million or 86.7% from the same three-month period last year and$681,000 or 36.7% from the prior quarter to$2.5 million . - Return on average assets improved to 1.04% for the three months ended
September 30, 2015 compared to 0.74% for the same period last year and 0.93% for the prior quarter. The efficiency ratio improved to 60.48% for the three months endedSeptember 30, 2015 compared to 65.88% for the same period last year and 61.75% for the prior quarter. - Total assets increased
$264.2 million or 35.4% year-over-year to$1.0 billion as ofSeptember 30, 2015 . Average assets grew$166.8 million over the prior quarter average balances. Approximately$113.7 million of the increase was a result of the IBT acquisition and the remaining$53.1 million increase was a result of organic growth. - Total loans increased
$172.9 million or 29.7% year-over-year to$754.2 million as ofSeptember 30, 2015 . Average loan balances grew$131.6 million fromJune 30, 2015 with$89.7 million due to the IBT acquisition,$41.9 million resulting from growth in core customer lending. - Deposits increased
$198.1 million or 30.7% year-over-year to$842.6 million as ofSeptember 30, 2015 . Average deposits grew$141.1 million compared to the quarter endingJune 30, 2015 with$98.4 million resulting from the acquisition of IBT,$13.1 million due to growth in core customer deposits, and$29.6 million due to increases in low cost wholesale deposits.
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
Noninterest income increased
Noninterest Expense
Noninterest expense was
Noninterest expense for the three months ended
Income Taxes
Income tax expense for the three months ended
Financial Condition
Loans (excluding loans held for sale and deferred loan fees) at
Loans (excluding loans held for sale and deferred loan fees) increased
Deposits at
Deposits increased
Advances from the
Asset Quality
Nonperforming assets totaled
Other real estate owned totaled
There was no provision for loan losses for the three months ended
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, 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 “Consolidated Financial Highlights” at the end of this release for a reconciliation of these non-GAAP financial measures.
About
Headquartered in
Acquisition of
On
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, expectations concerning the costs associated with the acquisition of IBT and related transactions, integration of the acquired business, 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
VERITEX HOLDINGS, INC. AND SUBSIDIARY | ||||||||||||||||
Consolidated Financial Highlights (Unaudited) | ||||||||||||||||
At and For the Three Months Ended | ||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | ||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||
Selected Financial Data: | ||||||||||||||||
Net income | $ | 2,537 | $ | 1,856 | $ | 1,824 | $ | 1,690 | $ | 1,359 | ||||||
Net income available to common stockholders | 2,517 | 1,836 | 1,804 | 1,670 | 1,339 | |||||||||||
Total assets | 1,009,539 | 827,140 | 808,906 | 802,286 | 745,344 | |||||||||||
Total loans(1) | 754,199 | 644,938 | 615,495 | 603,310 | 581,338 | |||||||||||
Allowance for loan losses | 6,214 | 6,193 | 6,006 | 5,981 | 5,880 | |||||||||||
Noninterest‑bearing deposits | 299,864 | 240,919 | 241,732 | 251,124 | 242,688 | |||||||||||
Total deposits | 842,607 | 673,106 | 668,255 | 638,743 | 644,543 | |||||||||||
Total stockholders’ equity | 137,508 | 117,085 | 115,133 | 113,312 | 75,603 | |||||||||||
Summary Performance Ratios: | ||||||||||||||||
Return on average assets(2) | 1.04 | % | 0.93 | % | 0.94 | % | 0.86 | % | 0.74 | % | ||||||
Return on average equity(2) | 7.38 | 6.39 | 6.45 | 6.21 | 7.16 | |||||||||||
Net interest margin(3) | 3.84 | 3.77 | 3.82 | 3.74 | 3.95 | |||||||||||
Efficiency ratio(4) | 60.48 | 61.75 | 66.67 | 62.49 | 65.87 | |||||||||||
Noninterest expense to average assets(2) | 2.39 | 2.36 | 2.61 | 2.38 | 2.63 | |||||||||||
Summary Credit Quality Data: | ||||||||||||||||
Nonaccrual loans | $ | 428 | $ | 312 | $ | 323 | $ | 436 | $ | 445 | ||||||
Accruing loans 90 or more days past due | — | — | — | — | 3 | |||||||||||
Other real estate owned | 493 | 548 | 548 | 105 | 1,434 | |||||||||||
Nonperforming assets to total assets | 0.09 | % | 0.10 | % | 0.12 | % | 0.07 | % | 0.25 | % | ||||||
Nonperforming loans to total loans | 0.06 | 0.05 | 0.05 | 0.07 | 0.08 | |||||||||||
Allowance for loan losses to total loans | 0.82 | 0.96 | 0.98 | 0.99 | 1.01 | |||||||||||
Net (recoveries) charge-offs to average loans outstanding | (0.00 | ) | (0.01 | ) | 0.01 | 0.04 | 0.01 | |||||||||
Capital Ratios: | ||||||||||||||||
Total stockholders’ equity to total assets | 13.62 | % | 14.16 | % | 14.23 | % | 14.11 | % | 10.14 | % | ||||||
Tangible common equity to tangible assets(5) | 10.30 | 11.01 | 11.01 | 10.86 | 6.50 | |||||||||||
Tier 1 capital to average assets | 12.02 | 12.82 | 12.78 | 12.66 | 8.28 | |||||||||||
Tier 1 capital to risk-weighted assets | 14.73 | 14.87 | 15.43 | 15.45 | 10.04 | |||||||||||
Common equity tier 1 to risk-weighted assets | 13.29 | 13.23 | 13.70 | n/a | n/a | |||||||||||
Total capital to risk-weighted assets | 16.18 | 16.52 | 17.16 | 17.21 | 11.90 | |||||||||||
(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) | |||||||||||||
September 30, | June 30, | December 31, | September 30, | ||||||||||
2015 | 2015 | 2014 | 2014 | ||||||||||
ASSETS | |||||||||||||
Cash and due from banks | $ | 10,478 | $ | 11,699 | $ | 9,223 | $ | 9,441 | |||||
Interest bearing deposits in other banks | 113,031 | 51,570 | 84,028 | 58,292 | |||||||||
Total cash and cash equivalents | 123,509 | 63,269 | 93,251 | 67,733 | |||||||||
Investment securities | 61,023 | 59,299 | 45,127 | 47,497 | |||||||||
Loans held for sale | 1,766 | 2,127 | 8,858 | 3,488 | |||||||||
Loans, net | 747,930 | 638,696 | 597,278 | 575,398 | |||||||||
Accrued interest receivable | 2,088 | 1,557 | 1,542 | 1,351 | |||||||||
Bank‑owned life insurance | 19,299 | 18,115 | 17,822 | 10,731 | |||||||||
Bank premises, furniture and equipment, net | 17,585 | 12,107 | 11,150 | 11,235 | |||||||||
Non‑marketable equity securities | 4,045 | 3,970 | 4,139 | 3,115 | |||||||||
Investment in unconsolidated subsidiary | 93 | 93 | 93 | 93 | |||||||||
Other real estate owned | 493 | 548 | 105 | 1,434 | |||||||||
Intangible assets | 2,458 | 1,110 | 1,261 | 1,337 | |||||||||
Goodwill | 26,025 | 19,148 | 19,148 | 19,148 | |||||||||
Other assets | 3,225 | 7,101 | 2,512 | 2,784 | |||||||||
Total assets | $ | 1,009,539 | $ | 827,140 | $ | 802,286 | $ | 745,344 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||
Deposits: | |||||||||||||
Noninterest‑bearing | $ | 299,864 | $ | 240,919 | $ | 251,124 | $ | 242,688 | |||||
Interest‑bearing | 542,743 | 432,187 | 387,619 | 401,855 | |||||||||
Total deposits | 842,607 | 673,106 | 638,743 | 644,543 | |||||||||
Accounts payable and accrued expenses | 1,782 | 1,202 | 1,582 | 1,327 | |||||||||
Accrued interest payable and other liabilities | 1,089 | 672 | 575 | 798 | |||||||||
Advances from Federal Home Loan Bank | 18,478 | 27,000 | 40,000 | 15,000 | |||||||||
Junior subordinated debentures | 3,093 | 3,093 | 3,093 | 8,073 | |||||||||
Subordinated notes | 4,982 | 4,982 | 4,981 | — | |||||||||
Total liabilities | 872,031 | 710,055 | 688,974 | 669,741 | |||||||||
Commitments and contingencies | |||||||||||||
Stockholders’ equity: | |||||||||||||
Preferred stock | 8,000 | 8,000 | 8,000 | 8,000 | |||||||||
Common stock | 107 | 95 | 95 | 64 | |||||||||
Additional paid‑in capital | 115,579 | 97,761 | 97,469 | 61,513 | |||||||||
Retained earnings | 14,204 | 11,687 | 8,047 | 6,378 | |||||||||
Unallocated Employee Stock Ownership Plan shares | (406 | ) | (406 | ) | (401 | ) | 119 | ||||||
Accumulated other comprehensive income | 94 | 18 | 172 | (401 | ) | ||||||||
Treasury stock, 10,000 shares at cost | (70 | ) | (70 | ) | (70 | ) | (70 | ) | |||||
Total stockholders’ equity | 137,508 | 117,085 | 113,312 | 75,603 | |||||||||
Total liabilities and stockholders’ equity | $ | 1,009,539 | $ | 827,140 | $ | 802,286 | $ | 745,344 |
VERITEX HOLDINGS, INC. AND SUBSIDIARY | |||||||
Condensed Consolidated Statements of Income (Unaudited) | |||||||
(In thousands, except share amounts) | |||||||
Nine Months Ended | |||||||
September 30, | September 30, | ||||||
2015 | 2014 | ||||||
Interest income: | |||||||
Interest and fees on loans | $ | 24,032 | $ | 19,901 | |||
Interest on investment securities | 712 | 629 | |||||
Interest on deposits in other banks | 169 | 120 | |||||
Interest on other | 1 | 2 | |||||
Total interest income | 24,914 | 20,652 | |||||
Interest expense: | |||||||
Interest on deposit accounts | 2,075 | 1,770 | |||||
Interest on borrowings | 392 | 374 | |||||
Total interest expense | 2,467 | 2,144 | |||||
Net interest income | 22,447 | 18,508 | |||||
Provision for loan losses | 258 | 1,097 | |||||
Net interest income after provision for loan losses | 22,189 | 17,411 | |||||
Noninterest income: | |||||||
Service charges and fees on deposit accounts | 907 | 807 | |||||
Gain on sales of investment securities | 7 | 34 | |||||
Gain on sales of loans | 824 | 486 | |||||
Gain on sales of other assets owned | 19 | 4 | |||||
Bank‑owned life insurance | 552 | 317 | |||||
Other | 188 | 193 | |||||
Total noninterest income | 2,497 | 1,841 | |||||
Noninterest expense: | |||||||
Salaries and employee benefits | 8,247 | 7,593 | |||||
Occupancy and equipment | 2,560 | 2,460 | |||||
Professional fees | 1,536 | 943 | |||||
Data processing and software expense | 903 | 760 | |||||
FDIC assessment fees | 317 | 315 | |||||
Marketing | 595 | 432 | |||||
Other assets owned expenses and writedowns | 29 | 187 | |||||
Amortization of intangibles | 243 | 221 | |||||
Telephone and communications | 182 | 168 | |||||
Other | 1,043 | 744 | |||||
Total noninterest expense | 15,655 | 13,823 | |||||
Net income from operations | 9,031 | 5,429 | |||||
Income tax expense | 2,814 | 1,913 | |||||
Net income | $ | 6,217 | $ | 3,516 | |||
Preferred stock dividends | $ | 60 | $ | 60 | |||
Net income available to common stockholders | $ | 6,157 | $ | 3,456 | |||
Basic earnings per share | $ | 0.62 | $ | 0.55 | |||
Diluted earnings per share | $ | 0.61 | $ | 0.54 | |||
Weighted average basic shares outstanding | 9,853,785 | 6,261,653 | |||||
Weighted average diluted shares outstanding | 10,121,184 | 6,394,791 |
VERITEX HOLDINGS, INC. AND SUBSIDIARY | ||||||||||||||||
Condensed Consolidated Statements of Income (Unaudited) | ||||||||||||||||
(In thousands, except share amounts) | ||||||||||||||||
Three Months Ended | ||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | ||||||||||||
Interest income: | ||||||||||||||||
Interest and fees on loans | $ | 9,230 | $ | 7,454 | $ | 7,348 | $ | 7,335 | $ | 7,183 | ||||||
Interest on investment securities | 247 | 252 | 212 | 209 | 207 | |||||||||||
Interest on deposits in other banks | 60 | 55 | 54 | 63 | 43 | |||||||||||
Interest on other | 1 | — | — | — | 1 | |||||||||||
Total interest income | 9,538 | 7,761 | 7,614 | 7,607 | 7,434 | |||||||||||
Interest expense: | ||||||||||||||||
Interest on deposit accounts | 778 | 666 | 631 | 652 | 609 | |||||||||||
Interest on borrowings | 143 | 123 | 126 | 123 | 123 | |||||||||||
Total interest expense | 921 | 789 | 757 | 775 | 732 | |||||||||||
Net interest income | 8,617 | 6,972 | 6,857 | 6,832 | 6,702 | |||||||||||
Provision for loan losses | — | 148 | 110 | 326 | 420 | |||||||||||
Net interest income after provision for loan losses | 8,617 | 6,824 | 6,747 | 6,506 | 6,282 | |||||||||||
Noninterest income: | ||||||||||||||||
Service charges and fees on deposit accounts | 380 | 282 | 245 | 292 | 282 | |||||||||||
Gain on sales of investment securities | — | — | 7 | — | — | |||||||||||
Gain on sales of loans | 392 | 129 | 302 | 155 | 241 | |||||||||||
Gain (loss) on sales of other assets owned | 21 | — | (2 | ) | 6 | (33 | ) | |||||||||
Bank‑owned life insurance | 194 | 179 | 178 | 111 | 105 | |||||||||||
Other | 56 | 98 | 36 | 92 | 35 | |||||||||||
Total noninterest income | 1,043 | 688 | 766 | 656 | 630 | |||||||||||
Noninterest expense: | ||||||||||||||||
Salaries and employee benefits | 3,001 | 2,588 | 2,657 | 2,444 | 2,755 | |||||||||||
Occupancy and equipment | 894 | 808 | 857 | 786 | 844 | |||||||||||
Professional fees | 632 | 365 | 540 | 439 | 296 | |||||||||||
Data processing and software expense | 368 | 272 | 263 | 281 | 254 | |||||||||||
FDIC assessment fees | 121 | 96 | 100 | 105 | 99 | |||||||||||
Marketing | 227 | 162 | 205 | 156 | 142 | |||||||||||
Other assets owned expenses and write-downs | (5 | ) | 22 | 13 | 24 | 53 | ||||||||||
Amortization of intangibles | 96 | 74 | 74 | 74 | 74 | |||||||||||
Telephone and communications | 68 | 57 | 57 | 58 | 54 | |||||||||||
Other | 440 | 286 | 316 | 312 | 259 | |||||||||||
Total noninterest expense | 5,842 | 4,730 | 5,082 | 4,679 | 4,830 | |||||||||||
Net income from operations | 3,818 | 2,782 | 2,431 | 2,483 | 2,082 | |||||||||||
Income tax expense | 1,281 | 926 | 607 | 793 | 723 | |||||||||||
Net income | $ | 2,537 | $ | 1,856 | $ | 1,824 | $ | 1,690 | $ | 1,359 | ||||||
Preferred stock dividends | $ | 20 | $ | 20 | $ | 20 | $ | 20 | $ | 20 | ||||||
Net income available to common stockholders | $ | 2,517 | $ | 1,836 | $ | 1,804 | $ | 1,670 | $ | 1,339 | ||||||
Basic earnings per share | $ | 0.24 | $ | 0.19 | $ | 0.19 | $ | 0.18 | $ | 0.21 | ||||||
Diluted earnings per share | $ | 0.23 | $ | 0.19 | $ | 0.19 | $ | 0.18 | $ | 0.21 | ||||||
Weighted average basic shares outstanding | 10,652,602 | 9,447,807 | 9,447,706 | 9,157,582 | 6,321,897 | |||||||||||
Weighted average diluted shares outstanding | 10,940,427 | 9,708,673 | 9,743,576 | 9,405,168 | 6,462,897 |
VERITEX HOLDINGS, INC. AND SUBSIDIARY | ||||||||||||||||
Reconciliation GAAP — NON GAAP (Unaudited) | ||||||||||||||||
(In thousands) | ||||||||||||||||
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, | June 30, | March 31, | December 31, | September 30, | ||||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | ||||||||||||
Tangible Common Equity | ||||||||||||||||
Total stockholders’ equity | $ | 137,508 | $ | 117,085 | $ | 115,133 | $ | 113,312 | $ | 75,603 | ||||||
Adjustments: | ||||||||||||||||
Preferred stock | (8,000 | ) | (8,000 | ) | (8,000 | ) | (8,000 | ) | (8,000 | ) | ||||||
Goodwill | (26,025 | ) | (19,148 | ) | (19,148 | ) | (19,148 | ) | (19,148 | ) | ||||||
Intangible assets | (2,458 | ) | (1,110 | ) | (1,186 | ) | (1,261 | ) | (1,337 | ) | ||||||
Total tangible common equity | $ | 101,025 | $ | 88,827 | $ | 86,799 | $ | 84,903 | $ | 47,118 | ||||||
Tangible Assets | ||||||||||||||||
Total assets | $ | 1,009,539 | $ | 827,140 | $ | 808,906 | $ | 802,286 | $ | 745,344 | ||||||
Adjustments: | ||||||||||||||||
Goodwill | (26,025 | ) | (19,148 | ) | (19,148 | ) | (19,148 | ) | (19,148 | ) | ||||||
Intangible assets | (2,458 | ) | (1,110 | ) | (1,186 | ) | (1,261 | ) | (1,337 | ) | ||||||
Total tangible assets | $ | 981,056 | $ | 806,882 | $ | 788,572 | $ | 781,877 | $ | 724,859 | ||||||
Tangible Common Equity to Tangible Assets | 10.30 | % | 11.01 | % | 11.01 | % | 10.86 | % | 6.50 | % | ||||||
Common shares outstanding | 10,700 | 9,494 | 9,485 | 9,471 | 6,359 | |||||||||||
Book value per common share(1) | $ | 12.10 | $ | 11.49 | $ | 11.29 | $ | 11.12 | $ | 10.63 | ||||||
Tangible book value per common share(2) | $ | 9.44 | $ | 9.36 | $ | 9.15 | $ | 8.96 | $ | 7.41 | ||||||
(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.
(3) Goodwill reflects provisional estimates of fair value of assets and liabilities acquired in the IBT acquisition.
VERITEX HOLDINGS, INC. AND SUBSIDIARY | |||||||||||||||||||||||||
Net Interest Margin (Unaudited) | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||
September 30, 2015 | June 30, 2015 | September 30, 2014 | |||||||||||||||||||||||
Interest | Interest | Interest | |||||||||||||||||||||||
Average | Earned/ | Average | Average | Earned/ | Average | Average | Earned/ | Average | |||||||||||||||||
Outstanding | Interest | Yield/ | Outstanding | Interest | Yield/ | Outstanding | Interest | Yield/ | |||||||||||||||||
Balance | Paid | Rate | Balance | Paid | Rate | Balance | Paid | Rate | |||||||||||||||||
Assets | |||||||||||||||||||||||||
Interest‑earning assets: | |||||||||||||||||||||||||
Total loans(1) | $ | 756,542 | $ | 9,230 | 4.84 | % | $ | 624,971 | $ | 7,454 | 4.78 | % | $ | 565,465 | $ | 7,183 | 5.04 | % | |||||||
Securities available for sale | 63,204 | 248 | 1.56 | 56,603 | 252 | 1.79 | 49,148 | 207 | 1.67 | ||||||||||||||||
Investment in subsidiary | 93 | — | — | 93 | — | — | 93 | 1 | 4.27 | ||||||||||||||||
Interest‑earning deposits in financial institutions | 70,363 | 60 | 0.34 | 60,630 | 55 | 0.36 | 58,027 | 43 | 0.29 | ||||||||||||||||
Total interest‑earning assets | 890,202 | 9,538 | 4.25 | 742,297 | 7,761 | 4.19 | 672,733 | 7,434 | 4.38 | ||||||||||||||||
Allowance for loan losses | (7,146 | ) | (6,069 | ) | (5,665 | ) | |||||||||||||||||||
Noninterest‑earning assets | 88,023 | 68,046 | 60,668 | ||||||||||||||||||||||
Total assets | $ | 971,079 | $ | 804,274 | $ | 727,736 | |||||||||||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||||||||
Interest‑bearing liabilities: | |||||||||||||||||||||||||
Interest‑bearing deposits | $ | 520,806 | $ | 778 | 0.59 | % | $ | 428,146 | $ | 666 | 0.62 | % | $ | 384,671 | $ | 609 | 0.63 | % | |||||||
Advances from FHLB | 19,404 | 56 | 1.14 | 15,132 | 30 | 0.80 | 15,000 | 30 | 0.79 | ||||||||||||||||
Other borrowings | 9,077 | 86 | 3.76 | 8,077 | 93 | 4.62 | 8,073 | 93 | 4.57 | ||||||||||||||||
Total interest‑bearing liabilities | 549,287 | 920 | 0.66 | 451,355 | 789 | 0.70 | 407,744 | 732 | 0.71 | ||||||||||||||||
Noninterest‑bearing liabilities: | |||||||||||||||||||||||||
Noninterest‑bearing deposits | 282,934 | 234,510 | 242,728 | ||||||||||||||||||||||
Other liabilities | 2,403 | 1,974 | 1,965 | ||||||||||||||||||||||
Total noninterest‑bearing liabilities | 285,337 | 236,484 | 244,693 | ||||||||||||||||||||||
Stockholders’ equity | 136,455 | 116,435 | 75,299 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 971,079 | $ | 804,274 | $ | 727,736 | |||||||||||||||||||
Net interest rate spread(2) | 3.59 | % | 3.49 | % | 3.67 | % | |||||||||||||||||||
Net interest income | $ | 8,617 | $ | 6,972 | $ | 6,702 | |||||||||||||||||||
Net interest margin(3) | 3.84 | % | 3.77 | % | 3.95 | % | |||||||||||||||||||
(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