Regional lender Veritex posts higher Q2 net income, announces $0.22 dividend

Overview

• Veritex Q2 net income rises to $30.9 mln, diluted EPS at $0.56

• Company's net interest margin improves to 3.33% from 3.31% in Q1

Outlook

• Company expects merger with Huntington Bancshares to close in Q4 2025

Result Drivers

• NET INTEREST INCOME - Increase driven by higher interest income on loans and decreased interest expenses on certificates and subordinated debt

• NONINTEREST INCOME - Decrease primarily due to reduced government guaranteed loan income, partially offset by higher customer swap income

• NONINTEREST EXPENSE - Slight increase due to higher professional fees and marketing expenses, despite reduced salaries and benefits

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• Wall Street's median 12-month price target for Veritex Holdings Inc is $30.00, about 9.3% below its July 17 closing price of $32.80

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nGNXytF80