Veritex Holdings, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, showing a mixed performance compared to the previous fiscal period. Total interest and dividend income for the third quarter increased to $196.7 million, up from $187.1 million in the same period of 2023. However, net interest income for the nine months decreased to $289.1 million from $303.6 million year-over-year, reflecting a decline in net interest margin from 3.55% to 3.28%.
The company’s net income for the third quarter was $31.0 million, a slight decrease from $32.6 million in the prior year, while net income for the nine months fell to $82.4 million from $104.8 million, marking a 21.3% decline. Basic earnings per share (EPS) for the third quarter was $0.57, down from $0.60, and for the nine months, it decreased to $1.51 from $1.93.
Total assets increased to $13.04 billion as of September 30, 2024, up from $12.39 billion at the end of 2023. Total deposits also rose to $11.04 billion, a 6.7% increase from $10.34 billion. The company’s total stockholders’ equity increased to $1.61 billion, reflecting a 5.0% rise from $1.53 billion at year-end 2023.
Veritex's noninterest income for the nine months decreased to $30.3 million from $36.9 million, primarily due to a significant drop in government guaranteed loan income, which fell to $4.7 million from $15.6 million. Conversely, loan fees increased to $8.0 million from $5.1 million. Noninterest expenses rose to $195.4 million, up 12.8% from $173.2 million, driven by higher salaries and employee benefits, which increased by 13.2% to $103.5 million.
The company also reported a provision for credit losses of $19.8 million for the nine months, down from $33.0 million in the previous year. Nonperforming loans decreased to $58.3 million from $95.8 million, improving the nonperforming loans to total loans ratio to 0.60% from 1.00%.
Strategically, Veritex authorized a stock buyback program in March 2024, allowing for the repurchase of up to $50 million of its common stock, with $46.5 million remaining available for repurchase as of September 30, 2024. The company continues to manage its interest rate risk through various hedging strategies, reflecting its focus on maintaining financial stability amid market fluctuations.
About Veritex Holdings, Inc.
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