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DALLAS - Veritex Holdings, Inc. (NASDAQ:VBTX), the parent company of Veritex Community Bank, reported net income of $30.9 million for the second quarter of 2025, an increase from $29.1 million in the first quarter and $27.2 million in the same period last year. The $1.78 billion market cap regional bank has shown impressive momentum, with InvestingPro data showing a 42% return over the past year and trading near its 52-week high of $33.69.
The company’s board of directors declared a quarterly cash dividend of $0.22 per share, payable on August 21, 2025, to shareholders of record as of August 7, 2025. The current dividend yield stands at 2.68%, with dividend growth of 10% over the last twelve months.
Diluted earnings per share for the quarter reached $0.56, compared to $0.53 in the previous quarter and $0.50 in the second quarter of 2024. Net interest margin improved slightly to 3.33% from 3.31% in the first quarter.
Total loans held for investment, excluding mortgage warehouse, decreased by $44.7 million from the previous quarter to $8.78 billion. Total deposits stood at $10.42 billion, down $247.2 million from March 31, 2025, primarily due to decreases in noninterest-bearing deposits and interest-bearing transaction accounts.
Credit quality metrics showed improvement with nonperforming assets totaling $75.2 million, or 0.60% of total assets, down from $96.9 million, or 0.77% of total assets, at the end of the first quarter. Net charge-offs for the quarter were $1.3 million, representing an annualized rate of 0.05% of average loans. According to InvestingPro’s analysis, the bank maintains a healthy financial profile with strong returns and moderate leverage, with debt-to-equity ratio at just 0.12. Get access to 10+ additional exclusive ProTips and comprehensive financial analysis with an InvestingPro subscription.
The company’s capital position remained strong with a common equity Tier 1 capital ratio of 11.05%. Book value per share increased by $0.31 to $30.39, while tangible book value per share rose by $0.35 to $22.68.
During the quarter, Veritex repurchased 286,291 shares of company stock for $7.1 million. The company also noted that on July 14, 2025, it announced a definitive agreement to merge with Huntington Bancshares Incorporated, a transaction expected to close in the fourth quarter of 2025, subject to regulatory approvals and customary closing conditions. With revenue growth of 14.03% and a P/E ratio of 15.59x, InvestingPro’s Fair Value analysis suggests the stock is currently fairly valued. Discover detailed merger implications and comprehensive analysis in our Pro Research Report, available to subscribers.
The financial results were released in a press statement from the company.
In other recent news, Huntington Bancshares has agreed to acquire Veritex Holdings in an all-stock transaction valued at $1.9 billion. This acquisition will significantly expand Huntington’s presence in Texas markets, adding approximately $13 billion in assets, $9 billion in loans, and $11 billion in deposits to its balance sheet. The transaction is set to close in the early fourth quarter of 2025, pending regulatory approvals. Piper Sandler has downgraded Veritex Holdings from Overweight to Neutral, citing the completion of its merger thesis following the merger announcement. Despite the downgrade, Piper Sandler increased its price target for Veritex to $34.00, reflecting the current valuation post-merger. Meanwhile, Keefe, Bruyette & Woods maintained its Market Perform rating for Veritex, with a price target of $30.00. In a recent shareholder meeting, Veritex Holdings announced the election of all nominated directors and the approval of its 2025 Amended and Restated Omnibus Incentive Plan. Shareholders also ratified the appointment of Grant Thornton LLP as the company’s independent registered public accounting firm for the fiscal year ending December 31, 2025.
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