Veritex Holdings, Inc. (NASDAQ:VBTX) Q1 2023 Earnings Conference Call April 26, 2023 9:30 AM ET

Company Participants

Susan Caudle - Investor Relations Officer and Secretary

Malcolm Holland - Chairman and CEO

Terry Earley - Chief Financial Officer

Clay Riebe - Chief Credit Officer

Conference Call Participants

Brady Gailey - KBW

Brett Rabatin - Hovde Group

Brad Milsaps - Piper Sandler

Gary Tenner - D.A. Davidson

Michael Rose - Raymond James

Matt Olney - Stephens

Operator

Good morning. And welcome to the Veritex Holdings First 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 to the Board of Veritex Holdings.

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; and 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 first quarter earnings call. Despite the challenges in the marketplace, Veritex continues to produce results that accrue to our shareholders’ benefit. For the first quarter, we reported net operating income of $43.3 million or $0.79 per share.

Our pretax pre-provision for the quarter was $66.4 million or 2.2% return on average assets. From an operating standpoint, our return on average tangible common equity was in excess of 17.7%. Our return on average assets was 1.44% and efficiency remained in the mid-40s at 45.6%.