Veritex Holdings, Inc. (VBTX) has reported a 10.13 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $3.10 million, or $0.20 a share in the quarter, compared with $2.81 million, or $0.26 a share for the same period last year.
Revenue during the quarter grew 16.44 percent to $11.90 million from $10.22 million in the previous year period. Net interest income for the quarter rose 16.13 percent over the prior year period to $11.25 million. Non-interest income for the quarter rose 11.80 percent over the last year period to $1.54 million.
Veritex Holdings has made provision of $0.89 million for loan losses during the quarter, up 5.33 percent from $0.84 million in the same period last year.
Net interest margin contracted 66 basis points to 3.21 percent in the quarter from 3.87 percent in the last year period. Efficiency ratio for the quarter deteriorated to 58.26 percent from 54.01 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability. Malcolm Holland, the Company’s Chairman and Chief Executive Officer, said, "I am pleased with the continued execution of our strategic plan, both on the acquisition and organic growth fronts. On the acquisition front, the merger with Sovereign Bancorp Inc. remains on track and we anticipate a second quarter closing. Veritex and Sovereign integration teams completed the planning phase and are looking forward to a smooth closing and conversion process. Our shareholders and the shareholders of Sovereign approved the merger at the respective special meetings of shareholders on April 6, 2017. The Texas Department of Banking granted its approval of our regulatory application and we are prepared to close following approval from the Federal Reserve."
Assets outpace liabilities growth Total assets stood at $1,522.02 million as on Mar. 31, 2017, up 34.63 percent compared with $1,130.48 million on Mar. 31, 2016. On the other hand, total liabilities stood at $1,279.29 million as on Mar. 31, 2017, up 28.54 percent from $995.24 million on Mar. 31, 2016. Loans outpace deposit growth Net loans stood at $1,012.11 million as on Mar. 31, 2017, up 15.28 percent compared with $877.98 million on Mar. 31, 2016. Deposits stood at $1,221.70 million as on Mar. 31, 2017, up 29.14 percent compared with $946.06 million on Mar. 31, 2016. Noninterest-bearing deposit liabilities were $338.23 million or 27.68 percent of total deposits on Mar. 31, 2017, compared with $296.48 million or 31.34 percent of total deposits on Mar. 31, 2016.
Investments stood at $146.17 million as on Mar. 31, 2017, up 72.41 percent or $61.39 million from year-ago. Shareholders equity stood at $242.72 million as on Mar. 31, 2017, up 79.48 percent or $107.48 million from year-ago.
Return on average assets moved down 21 basis points to 0.83 percent in the quarter from 1.04 percent in the last year period. At the same time, return on average equity decreased 319 basis points to 5.20 percent in the quarter from 8.39 percent in the last year period.
Meanwhile, nonperforming assets to total assets was 0.19 percent in the quarter, up from 0.11 percent in the last year period.
Capital ratios improve Veritex Holdings, Inc. recorded an improvement in capital ratios during the quarter. Tier-1 leverage ratio stood at 14.65 percent for the quarter, up from 10.38 percent for the previous year quarter. Equity to assets ratio was 15.95 percent for the quarter, up from 11.96 percent for the previous year quarter. Book value per share was $15.94 for the quarter, up 26.41 percent or $3.33 compared to $12.61 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
