Veritex Holdings, Inc. (VBTX) has reported a 24.02 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $3.19 million, or $0.27 a share in the quarter, compared with $2.57 million, or $0.23 a share for the same period last year.      

Revenue during the quarter grew 23.87 percent to $11.90 million from $9.61 million in the previous year period. Net interest income for the quarter rose 16.72 percent over the prior year period to $10.52 million. Non-interest income for the quarter rose 51.12 percent over the last year period to $1.82 million.

Veritex Holdings has made provision of $0.44 million for loan losses during the quarter, down 27.87 percent from $0.61 million in the same period last year.

Net interest margin contracted 34 basis points to 3.44 percent in the quarter from 3.78 percent in the last year period. Efficiency ratio for the quarter deteriorated to 57.08 percent from 56.11 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.

C. Malcolm Holland, the Company’s chairman and chief executive officer said, "I am pleased to announce the results of another great year for Veritex. This year has been extremely productive: we continued to increase earnings per share, significantly grew loans and deposits, and were recognized once again as one of the best places to work. 2016 was another example of our success in focusing on our organic growth strategy and our ability to grow through strategic and disciplined acquisitions. Our efforts resulted in our announcement in December of our merger with Sovereign Bancshares expected to close during the second quarter of 2017. The combined company will have assets over $2.4 billion and will be one of the ten largest banks headquartered in Dallas-Fort Worth. We are very excited about the year ahead as it promises to be transformative for Veritex Community Bank."

Noninterest-bearing deposit liabilities were $327.61 million or 29.26 percent of total deposits on Dec. 31, 2016, compared with $301.37 million or 34.70 percent of total deposits on Dec. 31, 2015.

Investments stood at $110.02 million as on Dec. 31, 2016, up 37.40 percent or $29.95 million from year-ago. Shareholders equity stood at $238.89 million as on Dec. 31, 2016, up 80.91 percent or $106.84 million from year-ago.

Return on average assets moved down 2 basis points to 0.97 percent in the quarter from 0.99 percent in the last year period. At the same time, return on average equity increased 74 basis points to 8.11 percent in the quarter from 7.37 percent in the last year period.

Nonperforming assets moved up 100 percent or $1.20 million to $2.40 million on Dec. 31, 2016 from $1.20 million on Dec. 31, 2015. Meanwhile, nonperforming assets to total assets was 0.17 percent in the quarter, up from 0.11 percent in the last year period.