Veritex Holdings, Inc. (VBTX) has reported 33.03 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $3.38 million, or $0.31 a share in the quarter, compared with $2.54 million, or $0.23 a share for the same period last year.
Revenue during the quarter grew 26 percent to $12.17 million from $9.66 million in the previous year period. Net interest income for the quarter rose 22.05 percent over the prior year period to $10.52 million. Non-interest income for the quarter rose 81.50 percent over the last year period to $1.89 million.
Net interest margin contracted 20 basis points to 3.70 percent in the quarter from 3.90 percent in the last year period. Efficiency ratio for the quarter improved to 56.64 percent from 60.48 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
alcolm Holland, the Company’s chairman and chief executive officer, said, "We achieved another record quarter making this the tenth consecutive quarter the Company reported an increase in earnings over the prior quarter. With the reported $0.31 diluted earnings per share for the third quarter 2016, we have grown 2016 diluted earnings per share to $0.85 through the nine months of 2016, a 39% increase over $0.61 for the same period in 2015."
Liabilities outpace assets growthTotal assets stood at $1,269.24 million as on Sep. 30, 2016, up 25.72 percent compared with $1,009.54 million on Sep. 30, 2015. On the other hand, total liabilities stood at $1,126.82 million as on Sep. 30, 2016, up 29.22 percent from $872.03 million on Sep. 30, 2015.
Loans outpace deposit growthNet loans stood at $918.56 million as on Sep. 30, 2016, up 22.81 percent compared with $747.93 million on Sep. 30, 2015. Deposits stood at $1,077.22 million as on Sep. 30, 2016, up 27.84 percent compared with $842.61 million on Sep. 30, 2015. Noninterest-bearing deposit liabilities were $304.97 million or 28.31 percent of total deposits on Sep. 30, 2016, compared with $299.86 million or 35.59 percent of total deposits on Sep. 30, 2015.
Investments stood at $86.86 million as on Sep. 30, 2016, up 42.13 percent or $25.75 million from year-ago. Shareholders equity stood at $142.42 million as on Sep. 30, 2016, up 3.57 percent or $4.91 million from year-ago.
Return on average assets moved up 6 basis points to 1.10 percent in the quarter from 1.04 percent in the last year period. At the same time, return on average equity increased 212 basis points to 9.50 percent in the quarter from 7.38 percent in the last year period.
Meanwhile, nonperforming assets to total assets was 0.17 percent in the quarter, up from 0.09 percent in the last year period.
Capital ratios deteriorateVeritex Holdings witnessed a deterioration in capital ratios during in the quarter. Tier-1 leverage ratio stood at 9.82 percent for the quarter, down from 12.02 percent for the previous year quarter. Equity to assets ratio was 11.22 percent for the quarter, down from 13.62 percent for the previous year quarter. Book value per share was $13.27 for the quarter, up 9.67 percent or $1.17 compared to $12.10 for the same period last year.
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