NASDAQ$VBTX

Veritex Holdings Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Veritex reported results for the quarter ended March 31, 2020, impacted by the COVID-19 pandemic and the adoption of ASU 2016-13.

Veritex Holdings reported a net income of $4.1 million, or $0.08 diluted earnings per share, for the quarter ended March 31, 2020. The results were impacted by a $35.7 million provision for credit losses and unfunded commitments due to the COVID-19 pandemic. The company's efficiency ratio was 47.61% for the quarter.

  • Net income was $4.1 million, or $0.08 diluted EPS.
  • Pre-tax, pre-provision operating earnings totaled $39.1 million.
  • Net loans held for investment, excluding mortgage warehouse, increased $116.2 million, or 8.1% annualized.
  • Efficiency ratio was 47.61%.

Headline financials

Total Revenue

$74.7M

Previous: $81.4M-8.3%
EPS (adj)

$0.08

Previous: $0.59-86.4%
Efficiency Ratio

47.6%

No prior period
Net Interest Margin

3.7%

No prior period
Net Income

$4.13M

Previous: $7.41M-44.2%
Operating Income

$3.45M

No prior period
Cash & Equivalents

$431M

Previous: $339M+26.9%
Total Assets

$8.53B

Previous: $7.93B+7.6%
Stock-Based Comp

$1.96M

Previous: $17.6M-88.8%

Revenue & EPS history

Veritex · Revenue · Quarterly

$74.7M

Q1 2020-8.3%vs Q1 2019
Beat estimate in 5 of 16 quarters(31%)
ActualEstimate

Revenue by segment

Veritex · $6.62B total across 8 segments · Q3 2021

  • Non-Owner Occ. CRE
    $2.18B
  • Commercial LHI
    $1.81B
  • Construction & Land
    $936M
  • Owner Occupied CRE
    $711M
  • 1-4 Family Residential
    $544M
  • Multi-Family Residential
    $357M
  • Farmland loans
    $73.6M
  • Consumer loans
    $14.3M

Forward guidance

The COVID-19 pandemic has caused significant disruptions to the global economy and the communities which we serve. In response to the pandemic, we have implemented our operational response and preparedness plan which includes dispersion of critical operational processes, increased monitoring focused on higher risk operations, enhanced remote access security and further restricted internet access, enhanced security around wire transfer execution and flexible scheduling provided to those that are unable to work from home.

Tailwinds

  • Implemented operational response and preparedness plan.
  • Critical operational processes dispersed.
  • Increased monitoring focused on higher risk operations.
  • Enhanced remote access security and further restricted internet access.
  • Enhanced security around wire transfer execution and flexible scheduling provided to those that are unable to work from home.

Headwinds

  • Significant disruptions to the global economy.
  • Significant disruptions to the communities which we serve.
  • Financial hardship due to the pandemic.
  • Increased monitoring focused on higher risk operations.
  • Enhanced remote access security and further restricted internet access.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 12 quarterly earnings reports

Historical avg

+0.3%

Avg return

Earnings day

+1.3%

Avg return

5 days after

+0.6%

Avg return

30 days after

53%

26 / 49 earnings

Positive

+15.3%

Q1 2020

Best reaction

-10.1%

Q3 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2025
Q2 2025-1.7%-1.0%-2.7%
Q1 2025+5.1%+5.6%+8.6%
Q4 2025-0.7%-2.7%-2.5%
Q3 2024+3.3%+1.7%+8.8%
Q2 2024-0.5%+5.1%-5.0%
Q1 2024+2.4%-0.6%+1.0%
Q4 2023-4.2%-4.2%-11.8%
Q3 2023-2.9%+1.7%+10.8%
Q2 2023+0.8%+3.9%-7.3%
Q1 2023-1.4%-2.6%-4.6%
Q4 2022-8.2%-5.2%-5.4%
Q3 2022+7.0%+14.0%+17.4%
Q2 2022-0.9%
Q1 2022-5.1%
Q4 2021+0.6%
Q3 2021-5.3%
Q2 2021+1.6%
Q1 2021+0.0%
Q4 2020-8.0%
Q3 2020-10.1%
Q2 2020+7.3%
Q1 2020+15.3%
Q4 2019-0.7%
Q3 2019+1.4%
Q2 2019-3.9%
Q1 2019-1.1%
Q4 2018+8.6%
Q3 2018-7.4%
Q2 2018-2.4%
Q1 2018+5.3%
Q4 2017+1.5%
Q3 2017-3.6%
Q2 2017+0.4%
Q1 2017+4.3%
Q4 2016+6.7%
Q3 2016+1.2%
Q2 2016+1.6%
Q1 2014-0.6%
Q2 2014-0.6%
Q1 2016+3.7%
Q4 2015-0.1%
Q3 2015+4.0%
Q2 2015+2.5%
Q1 2015+1.0%
Q4 2012+0.1%
Q4 2014+1.5%
Q3 2013-2.8%
Q4 2013-2.8%
Q3 2014+4.3%
Q2 2013
Q1 2013

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