Veritex Holdings (VBTX) Tops Q3 EPS by 2c

Veritex Holdings (NASDAQ: VBTX) reported Q3 EPS of $0.46, $0.02 better than the analyst estimate of $0.44.

Third Quarter Highlights

• Net income of $22.9 million, or $0.46 diluted earnings per share (“EPS”), compared to $24.0 million, or $0.48 diluted EPS, for the quarter ended June 30, 2020 and $27.4 million, or $0.51 diluted EPS, for the quarter ended September 30, 2019;
• Pre-tax, pre-provision operating earnings1 totaled $39.3 million, compared to $45.7 million for the quarter ended June 30, 2020 and $45.7 million for the quarter ended September 30, 2019;
• Provision for credit losses and unfunded commitments was $10.1 million, compared to $19.0 million for the quarter ended June 30, 2020;
• Allowance for credit losses (“ACL”) to total loans held for investments (“LHI”), excluding mortgage warehouse and Paycheck Protection Program (“PPP”) loans, was 2.10% for the quarter ended September 30, 2020 compared to 2.01% for the quarter ended June 30, 2020.
• Total loans, excluding PPP loans, grew $165.3 million from the second quarter of 2020, or 10.7% annualized.
• Total deposits grew $97.0 million from the second quarter of 2020, or 6.3% annualized, with the average cost of total deposits decreasing to 0.46% for the three months ended September 30, 2020 from 0.59% for the three months ended June 30, 2020;
• Growth of $20.9 million in total common equity tier 1 capital for the three months ended September 30, 2020;
• Declared quarterly cash dividend of $0.17 payable on November 19, 2020;
• On October 5, 2020, issued $125 million in subordinated debt initially bearing a fixed interest rate of 4.125%; and
• On October 27, 2020, extended the expiration date of the Stock Buyback Program from December 31, 2020 to March 31, 2021.

“Despite the economic headwinds resulting from the pandemic, we delivered a strong quarter. Loans on active deferral have declined 87% since late July. We remain optimistic about the current recovery and the long-term strength of the DFW and Houston economies,” said C. Malcolm Holland, III, the Company’s Chairman and Chief Executive Officer. “Our quarterly results reflect strong pre-tax, pre-provision operating net revenue, slower building of our allowance for credit losses, higher capital levels and positive loan and deposit growth. I couldn’t be more proud and encouraged by what the team has accomplished during 2020 which is proving to be a challenging operating period.”

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

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