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Mar 31, 2020
Veritex Q1 2020 Earnings Report
Veritex reported results for the quarter ended March 31, 2020, impacted by the COVID-19 pandemic and the adoption of ASU 2016-13.
Key Takeaways
Veritex Holdings reported a net income of $4.1 million, or $0.08 diluted earnings per share, for the quarter ended March 31, 2020. The results were impacted by a $35.7 million provision for credit losses and unfunded commitments due to the COVID-19 pandemic. The company's efficiency ratio was 47.61% for the quarter.
Net income was $4.1 million, or $0.08 diluted EPS.
Pre-tax, pre-provision operating earnings totaled $39.1 million.
Net loans held for investment, excluding mortgage warehouse, increased $116.2 million, or 8.1% annualized.
Efficiency ratio was 47.61%.
Veritex
Veritex
Forward Guidance
The COVID-19 pandemic has caused significant disruptions to the global economy and the communities which we serve. In response to the pandemic, we have implemented our operational response and preparedness plan which includes dispersion of critical operational processes, increased monitoring focused on higher risk operations, enhanced remote access security and further restricted internet access, enhanced security around wire transfer execution and flexible scheduling provided to those that are unable to work from home.
Positive Outlook
- Implemented operational response and preparedness plan.
- Critical operational processes dispersed.
- Increased monitoring focused on higher risk operations.
- Enhanced remote access security and further restricted internet access.
- Enhanced security around wire transfer execution and flexible scheduling provided to those that are unable to work from home.
Challenges Ahead
- Significant disruptions to the global economy.
- Significant disruptions to the communities which we serve.
- Financial hardship due to the pandemic.
- Increased monitoring focused on higher risk operations.
- Enhanced remote access security and further restricted internet access.