- Veritex Holdings (VBTX, Financial) reports $29.07 million in net income for Q1 2025, marking a 16.8% increase from Q4 2024.
- The company's net interest margin improved by 11 basis points to 3.31%.
- The quarterly cash dividend increased to $0.22 per share.
Veritex Holdings, Inc. (VBTX) has reported its financial results for the first quarter of 2025, showcasing significant profitability enhancements. The bank's net income reached $29.07 million, a 16.8% leap from $24.88 million in the previous quarter, with a diluted earnings per share (EPS) climbing to $0.53 from $0.45.
Among the key financial metrics, the net interest margin expanded to 3.31%, up by 11 basis points compared to Q4 2024. This improvement is attributed to strategic initiatives such as redeeming $75 million in subordinated notes. Book value per share rose to $30.08, reflecting an increase of $0.71.
Balance sheet adjustments included a decrease in criticized assets by $17.7 million and a reduction in the loan-to-deposit ratio to 88.9%. Veritex also repurchased 377,346 shares for approximately $9.5 million and announced an increased quarterly dividend of $0.22 per share.
However, credit quality showed mixed results with nonperforming assets at $96.9 million, representing 0.77% of total assets—up from 0.62% in the previous quarter. The allowance for credit losses increased slightly to 1.19% of total loans. Despite these challenges, the bank achieved tangible progress towards its 2025 goals, including a return on average assets (ROAA) of 0.94%, up from 0.78% in Q4 2024.
