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Mar 31, 2024
Veritex Q1 2024 Earnings Report
Veritex's financial performance for Q1 2024 was reported, showing growth in deposits, capital, and loans while maintaining stable credit metrics.
Key Takeaways
Veritex Holdings reported a net income of $24.156 million and diluted EPS of $0.44 for Q1 2024. The company saw growth in deposits, capital, and loans. Credit metrics remained stable.
Total deposits grew by $1.62 billion, an 18% increase compared to March 31, 2023.
Total loans grew by $46.4 million, a 0.5% increase compared to March 31, 2023.
Tangible book value per common share increased by 0.6% compared to December 31, 2023, and 4.63% compared to March 31, 2023.
The company authorized a stock buyback program to purchase up to $50 million of outstanding common stock.
Veritex
Veritex
Forward Guidance
The company announced authorization of a stock buyback program and reinvested in higher yielding AFS securities.
Positive Outlook
- Authorization of a stock buyback program on March 28, 2024, to purchase up to $50 million of outstanding common stock.
- Sold $120.1 million of lower-yielding available-for-sale (AFS) debt securities with a 3.11% average yield.
- Reinvested the proceeds in higher yielding AFS securities with a 6.24% average yield.
- Declared quarterly cash dividend of $0.20 per share of outstanding common stock payable on May 24, 2024.
- Total deposits were $10.65 billion at March 31, 2024, an increase of $315.6 million compared to December 31, 2023.
Challenges Ahead
- Net interest income before provision for credit losses decreased by $2.7 million compared to December 31, 2023.
- Noninterest income decreased by $6.9 million compared to the three months ended March 31, 2023.
- Noninterest expense increased by $1.9 million compared to the three months ended December 31, 2023.
- Net charge-offs of $5.3 million for the three months ended March 31, 2024.
- Net interest margin decreased 45 bps from 3.69% for the three months ended March 31, 2023.