Q1 2025 Veritex Holdings Inc Earnings Call Transcript
Key Points
- Veritex Holdings Inc (VBTX) reported a net operating profit of $29 million or $0.54 per share for the first quarter.
- The company achieved a pretax pre-provision earnings of $43.4 million, indicating strong operational performance.
- Deposit growth was solid, with a focus on bringing in lower-priced relationship dollars and reducing reliance on higher-priced non-relationship dollars.
- Credit quality showed positive trends, with a net decrease in past dues and criticized loans, and charge-offs below forecast.
- The tangible book value per share increased to $22.33, marking a 13.8% year-over-year increase, including dividends paid.
- Loan growth was challenged, with a decrease in loans of $125 million or 5% annualized for the quarter.
- Nonaccrual loans increased by $17 million, primarily due to targeted actions on select retail and office exposures.
- Total loans declined 1.3% during Q1 and 3% on a year-over-year basis, with higher-than-normal payoffs impacting growth.
- The company's reliance on wholesale funding, although reduced, still stands at 13.7%, indicating a need for further reduction.
- Operating expenses are expected to increase slightly due to investments in new hires, despite efforts to manage costs.
Good morning, and welcome to the Veritex Holdings First Quarter 2025 Earnings Conference Call and Webcast. (Operator Instructions) Please note, this event will be recorded. I will now turn the conference over to Will Holford with Veritex.
Thank you. Before we get started, I'd like to remind you that this presentation may include forward-looking statements, and those statements are subject to risks and uncertainties that could cause actual and anticipated results to differ. The company undertakes no obligation to publicly revise any forward-looking statement. If you're logged into our webcast, please refer to our slide presentation, including our safe harbor statement beginning on slide 2.
For those on the phone, please note that the safe harbor statement and presentation are available on our website, veritexbank.com. All comments made today are subject to that safe harbor statement. Some financial metrics discussed will be on a non-GAAP basis, which management believes
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