Veritex Holdings (VBTX) Misses Q1 EPS by 38c

Veritex Holdings (NASDAQ: VBTX) reported Q1 EPS of $0.08, $0.38 worse than the analyst estimate of $0.46.

First Quarter Highlights

• Net income of $4.1 million, or $0.08 diluted earnings per share (“EPS”), compared to $29.1 million, or $0.56 diluted EPS, for the quarter ended December 31, 2019 and $7.4 million, or $0.13 diluted EPS, for the quarter ended March 31, 2019;
• Pre-tax, pre-provision operating earnings1 totaled $39.1 million, compared to $42.1 million for the quarter ended December 31, 2019 and $46.4 million or the quarter ended March 31, 2019;
• Provision for credit losses and unfunded commitments was $35.7 million as a result of disruptions in the global economy from the COVID-19 pandemic and its impact on economic forecasts that drive the Company’s current expected credit loss model;
• Net loans held for investment, excluding mortgage warehouse, increased $116.2 million, or 8.1% annualized;
• Efficiency ratio was 47.61% for the first quarter of 2020;
• On March 16, 2020, Veritex suspended its stock buyback program; however, in the first quarter of 2020, Veritex repurchased 2,002,211 shares of its outstanding common stock under its stock buyback program for an aggregate of $49.6 million; and
• Declared quarterly cash dividend of $0.17 payable on May 21, 2020.

“The COVID-19 pandemic has affected millions of people and changed our lives in ways we could not have anticipated,” said C. Malcolm Holland, III, the Company’s Chairman and Chief Executive Officer. “Our thoughts and prayers go out to all of those people personally affected and dealing with this awful virus. Needless to say, we have focused on maintaining a safe work environment while continuing to meet the needs of our clients. Our company was an active participant in the Payroll Protection Plan. I am very proud of how our team embraced this challenge and delivered much needed financial help to our small business community. Despite the challenging environment we find ourselves in, our company continues to operate profitably, efficiently and with a spirit of commitment to our shareholders and other key stakeholders.”

For earnings history and earnings-related data on Veritex Holdings (VBTX) click here.

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