VBTX - Veritex Holdings: Radical Change Is Underway
2024-01-30 09:20:26 ET
Summary
- Veritex Holdings is still far from its all-time high despite a recovery in share price over the past 3 months.
- The bank is facing problems, including a high concentration of commercial real estate loans and a declining net interest margin.
- Management aims to reduce the CRE concentration ratio and the loan-to-deposit ratio, but future loan growth may be limited.
Despite a major recovery in price per share over the past three months, Veritex Holdings (VBTX) is still far from the all-time high of about $43 per share. In the latest quarterly report , the problems seen in the past emerged again, including a CRE concentration that is too high and a declining NIM that has not yet found the bottom. These two factors are probably depressing the price per share and I had already mentioned them in my previous article ; in addition, analysts' estimates were not beaten:
- Q4 Non-GAAP EPS of $0.58 missed by $0.04.
- Revenue of $77.74M (-35.4% Y/Y) missed by $32.92M.