Q2 2024 Veritex Holdings Inc Earnings Call Transcript
Key Points
- Veritex Holdings Inc (VBTX) reported operating earnings of $28.3 million or $0.52 per share for the second quarter.
- The loan deposit ratio, excluding mortgage warehouse, continues to climb and sits below 86%, with a 19% decline in dependence on wholesale funding.
- Tangible book value increased to $20.62, up $1.21 from 2023, representing a 12.7% year-over-year increase.
- Net interest margin (NIM) increased by 5 basis points from Q1 to 3.29% in Q2, with expectations to remain in the range of 3.25% to 3.3% for the remainder of 2024.
- Non-performing assets (NPAs) reduced by 20% or $21 million from the previous quarter, now at 65 basis points of total assets.
- Operating non-interest income declined to $10.6 million, driven by a lack of gain on sale revenue in the USDA business.
- Net charge-offs were $6.9 million, a slight increase from the first quarter.
- Loan growth, excluding mortgage warehouse, has been flat for the year.
- Criticized and classified assets, while stable, still require significant ongoing management.
- The government-guaranteed fee business underperformed, though enhancements are expected to yield results in the latter half of the year.
Good morning. And welcome to the Veritex Holdings second-quarter 2024 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.
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 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 the Safe Harbor statement. Some financial metrics discussed will be on a non-GAAP basis, which management believes better
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