Veritex Holdings, Inc. (NASDAQ:VBTX) Q2 2023 Earnings Conference Call July 26, 2023 9:30 AM ET
Company Participants
Susan Caudle - Investor Relations Officer and Secretary
Malcolm Holland - Chairman and Chief Executive Officer
Terry Earley - Chief Financial Officer
Clay Riebe - Chief Credit Officer
Operator
Good morning and welcome to the Veritex Holdings' Second Quarter 2023 Earnings Conference Call and Webcast. All participants will be in a listen-only mode. Please note this event will be recorded.
I will now turn the conference over to Ms. Susan Caudle, Investor Relations Officer and Secretary of the Board of Veritex Holdings. Ma'am, you may begin.
Susan Caudle
Thank you. Before we get started, I would like to remind you that this presentation may include forward-looking statements and those statements are subject to risks and uncertainties that could cause actual and anticipated results to differ. The Company undertakes no obligation to publicly revise any forward-looking statements.
At this time, if you are logged into our webcast, please refer to our slide presentation including our Safe Harbor statement beginning on slide two. For those of you joining us by phone, please note that the Safe Harbor statement and presentation are available on our website veritexbank.com. All comments made during today's call are subject to that Safe Harbor statement.
Some of the financial metrics discussed will be on a non-GAAP basis which our management believes better reflects the underlying core operating performance of the business. Please see the reconciliation of all discussed non-GAAP measures in our filed 8-K earnings release.
Joining me today are, Malcolm Holland, our Chairman and CEO; Terry Earley, our Chief Financial Officer, and Clay Riebe, our Chief Credit Officer.
I will now turn the call over to Malcolm.
Malcolm Holland
Good morning, everyone, and welcome to our second quarter earnings call. Despite the challenges in the marketplace, Veritex continues to make progress in many areas, delivering positive results.
For the second quarter, we reported net operating income of $34.7 million or $0.64 per share. Our pre-tax pre-provision for the quarter was $58.5 million or 1.9%. Since our merger with Green, we have never produced a pre-tax pre-provision less than 1.7%.
There were two main drivers of our income decline over the previous period. We had two charge-offs totaling $11.4 million. The majority charge was for an out-of-state office building for a 25-year Dallas client, and the second one was a C&I credit for a 5-plus year client in the lender finance space. Clay will provide some additional color here in a moment.