Veritex Holdings, Inc. (NASDAQ:VBTX) Q1 2022 Earnings Conference Call April 27, 2022 9:30 AM ET

Company Participants

Susan Caudle - Investor Relations Officer & Secretary to the Board

Malcolm Holland - Chairman & Chief Executive Officer

Terry Earley - Chief Financial Officer

Clay Riebe - Chief Credit Officer

Conference Call Participants

Michael Rose - Raymond James

Brett Rabatin - Hovde

Gary Tenner - D.A. Davidson

Brady Gailey - KBW

Matt Olney - Stephens

Graham Dick - Piper Sandler

Operator

Good day and welcome to the Veritex Holdings First Quarter 2022 Earnings Conference Call and Webcast. All participants will be in a listen-only mode. Please note, this event is being recorded.

I'll now turn the conference over to Ms. Susan Caudle, Investor Relations Officer and Secretary to the Board of Veritex Holdings. 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 statement.

At this time, if you're 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’ll now turn the call over to Malcolm.

Malcolm Holland

Good morning, everyone. I'm pleased to bring to you our first quarter financial results. Operating net income was $0.66 or $34 million and a pretax prereserve of 1.71%. The quarter had many positive attributes that continue to set us up for long-term success and increasing earnings growth.

As I think about our growth during the quarter, both loan and deposit growth exceeded our expectations, yet the majority of the loan growth came late in the quarter. Our average loan growth from Q4 to Q2 was only $107 million, producing less-than-expected revenue for net interest income, but our ending loan balance was $362 million greater than Q4 ending balance, resulting in a 21% annualized growth quarter and a great starting point for Q2.