Latest news with #NASDAQGM
Yahoo
2 days ago
- Business
- Yahoo
What Does Rapid7, Inc.'s (NASDAQ:RPD) Share Price Indicate?
Rapid7, Inc. (NASDAQ:RPD), is not the largest company out there, but it saw significant share price movement during recent months on the NASDAQGM, rising to highs of US$26.74 and falling to the lows of US$21.90. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Rapid7's current trading price of US$22.71 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Rapid7's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. What Is Rapid7 Worth? Rapid7 appears to be expensive according to our price multiple model, which makes a comparison between the company's price-to-earnings ratio and the industry average. In this instance, we've used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock's cash flows. We find that Rapid7's ratio of 55.63x is above its peer average of 45.71x, which suggests the stock is trading at a higher price compared to the Software industry. If you like the stock, you may want to keep an eye out for a potential price decline in the future. Since Rapid7's share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market. Check out our latest analysis for Rapid7 Can we expect growth from Rapid7? Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. With profit expected to more than double over the next couple of years, the future seems bright for Rapid7. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. What This Means For You Are you a shareholder? RPD's optimistic future growth appears to have been factored into the current share price, with shares trading above industry price multiples. At this current price, shareholders may be asking a different question – should I sell? If you believe RPD should trade below its current price, selling high and buying it back up again when its price falls towards the industry PE ratio can be profitable. But before you make this decision, take a look at whether its fundamentals have changed. Are you a potential investor? If you've been keeping an eye on RPD for a while, now may not be the best time to enter into the stock. The price has surpassed its industry peers, which means it is likely that there is no more upside from mispricing. However, the optimistic prospect is encouraging for RPD, which means it's worth diving deeper into other factors in order to take advantage of the next price drop. If you'd like to know more about Rapid7 as a business, it's important to be aware of any risks it's facing. In terms of investment risks, we've identified 1 warning sign with Rapid7, and understanding this should be part of your investment process. If you are no longer interested in Rapid7, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Business Wire
22-07-2025
- Business
- Business Wire
CB Financial Services, Inc. Announces Second Quarter 2025 Financial Results and Declares Quarterly Cash Dividend Increase of 4%
WASHINGTON, Pa.--(BUSINESS WIRE)--CB Financial Services, Inc. ('CB' or the 'Company') (NASDAQGM: CBFV), the holding company of Community Bank (the 'Bank'), today announced its second quarter and year-to-date 2025 financial results. Three Months Ended Six Months Ended 6/30/25 3/31/25 12/31/24 9/30/24 6/30/24 6/30/25 6/30/24 (Dollars in thousands, except per share data) (Unaudited) Net Income (GAAP) $ 3,949 $ 1,909 $ 2,529 $ 3,219 $ 2,650 $ 5,858 $ 6,847 Net Income Adjustments — 808 (562) (293) 24 808 (976) Adjusted Net Income (Non-GAAP) (1) $ 3,949 $ 2,717 $ 1,967 $ 2,926 $ 2,674 $ 6,666 $ 5,871 Earnings per Common Share - Diluted (GAAP) $ 0.74 $ 0.35 $ 0.46 $ 0.60 $ 0.51 $ 1.09 $ 1.33 Adjusted Earnings per Common Share - Diluted (Non-GAAP) (1) $ 0.74 $ 0.50 $ 0.35 $ 0.55 $ 0.52 $ 1.24 $ 1.14 Expand Income Before Income Tax Expense (GAAP) $ 4,715 $ 2,336 $ 3,051 $ 3,966 $ 3,210 $ 7,051 $ 8,327 Net Provision (Recovery) for Credit Losses 8 (40) 683 (41) (36) (32) (73) Pre-Provision Net Revenue ('PPNR') $ 4,723 $ 2,296 $ 3,734 $ 3,925 $ 3,174 $ 7,019 $ 8,254 Net Income Adjustments $ — $ 1,023 $ (711) $ (383) $ 31 $ 20 $ (992) Adjusted PPNR (Non-GAAP) (1) $ 4,723 $ 3,319 $ 3,023 $ 3,542 $ 3,205 $ 7,039 $ 7,262 Expand (1) Refer to Explanation of Use of Non-GAAP Financial Measures and reconciliation of adjusted net income and adjusted earnings per common share - diluted as presented later in this Press Release. Expand 2025 Second Quarter Financial Highlights Total assets were $1.52 billion at June 30, 2025, an increase of $34.5 million from March 31, 2025. Growth has been largely driven through strong commercial real estate and commercial and industrial loan production funded through a rise in core deposit accounts. The Bank also continues to focus efforts on repositioning the balance sheet to maximize earnings while maintaining its historic risk profile. These strategic movements include: Effectively managing cash and liquidity. Redeploying repayments of indirect automobile and residential mortgage loans into higher-yielding commercial loan products. Commercial loans totaled 59% of the Bank's loan portfolio at June 30, 2025 compared to 53% at June 30, 2024. Effecting changes in the Bank's deposit mix by focusing on growth in lower cost core deposit relationships and reducing reliance on time deposits. Net interest margin ('NIM') improved to 3.54% for the three months ended June 30, 2025 compared to 3.27% for the three months ended March 31, 2025. Main factors impacting the improved NIM included: A reduction in the cost of funds to 1.89% from 2.03% resulting from the favorable change in the Bank's deposit mix coupled with disciplined deposit pricing and the recent reduction in the federal funds rate. An increase in the yield on earning assets to 5.31% from 5.17% as the positive impact of the balance sheet repositioning strategies offset the effect of recent rate cuts on asset repricing. Noninterest expenses decreased $1.1 million to $8.7 million for the three months ended June 30, 2025 compared to $9.8 million for the three months ended March 31, 2025. During the quarter ended March 31, 2025, the Bank recognized $1.0 million in one-time expenses related to the previously announced reduction in force. Excluding these one-time charges, noninterest expense decreased $51,000 as ongoing savings from the reduction in force and other operational changes involving property management, recruitment and other activities are realized and expenses are actively managed and controlled. Asset quality remains strong as nonperforming loans to total loans was 0.16% at June 30, 2025. Book value per share and tangible book value per share (Non-GAAP) was $29.84 and $27.88, respectively at June 30, 2025. The improvements since year-end resulted from increased equity due to current period net income and a decrease in accumulated other comprehensive losses, partially offset by treasury shares repurchased under the Company's stock repurchase program and the payment of dividends. The Bank remains well-capitalized and is positioned for future growth. Management Commentary President and CEO John H. Montgomery commented, 'The first half of the year demonstrated solid loan growth and continued net interest margin improvement, with our strong second quarter operating results further reinforcing this positive momentum. Net interest margin expansion during the quarter was driven primarily by a reduction in our cost of funds, reflecting a more favorable deposit mix, disciplined deposit pricing and the recent federal funds rate cuts. Additionally, the yield on earning assets increased during the quarter, supported by the positive impact of our balance sheet repositioning strategies, which effectively mitigated the effects of recent rate reductions on asset repricing. Together, these factors demonstrate the effectiveness of our proactive management approach and position us to sustain strong margin performance moving forward. In navigating a fluctuating economic environment, we remain disciplined by maintaining a conservative balance sheet and actively managing risk. Since year-end, our loan portfolio grew by $18.2 million, or 1.7%, driven by increases in commercial real estate and commercial and industrial loans, partially offset by declines in construction, consumer and residential real estate loans. We were encouraged by loan growth during the quarter and anticipate steady loan demand throughout the year. Asset quality remains strong, with nonperforming loans representing just 0.16% of total loans and allowance for credit losses to nonperforming assets of 505.0% at quarter-end, reflecting our commitment to prudent credit management. In the second quarter we advanced the implementation of our Specialty Treasury Payments & Services program—an integral part of our long-term strategic plan to drive sustainable revenue growth and expand our core deposit base. All focus remains on building out the treasury products, personnel and technology to be fully operational by late 2025. While related expenses will modestly impact operating costs in the near term, we expect this to be a high-return investment in the strength and scalability of our franchise. We continue to prioritize strengthening core banking relationships and strategically reducing our reliance on time deposit-only accounts, contributing to a positive shift in our deposit mix. Since year-end, total time deposits declined by $16.7 million, driven by a $56.7 million reduction in organic time deposits, partially offset by a $40.0 million increase in brokered CDs. As we begin to scale our treasury deposit initiatives later this year, we anticipate the opportunity to reduce or fully replace brokered CDs, further aligning our funding mix with our long-term strategic objectives. As we move into the second half of the year, we maintain a positive outlook on the effectiveness of our strategic initiatives and believe we are well-positioned to achieve meaningful revenue growth by year-end.' Dividend Declaration The Company's Board of Directors has approved a 4.0% increase in the regular quarterly dividend by declaring a $0.26 quarterly cash dividend per outstanding share of common stock, payable on or about August 29, 2025, to stockholders of record as of the close of business on August 15, 2025. 2025 Second Quarter Financial Review Net Interest and Dividend Income Net interest and dividend income increased $1.1 million, or 9.3%, to $12.5 million for the three months ended June 30, 2025 compared to $11.5 million for the three months ended June 30, 2024. Net Interest Margin (NIM) (GAAP) increased to 3.54% for the three months ended June 30, 2025 compared to 3.18% for the three months ended June 30, 2024. Fully tax equivalent (FTE) NIM (Non-GAAP) increased 36 basis points ('bps') to 3.55% for the three months ended June 30, 2025 compared to 3.19% for the three months ended June 30, 2024. Interest and dividend income decreased $179,000, or 0.9%, to $18.8 million for the three months ended June 30, 2025 compared to $18.9 million for the three months ended June 30, 2024. Interest income on loans increased $822,000, or 5.6%, to $15.5 million for the three months ended June 30, 2025 compared to $14.7 million for the three months ended June 30, 2024. The average yield on loans increased 18 bps to 5.68% from 5.50% despite a 100bp reduction in the federal funds rate since September 2024. While this led to the downward repricing of variable and adjustable rate loans, the impact was negated by a reduction in lower yielding consumer loans due to the discontinuation of the indirect automobile loan product with the redeployment of those funds into higher yielding commercial loan products. The increase in the average yield caused a $489,000 increase in interest income on loans. Additionally, the average balance of loans increased $22.2 million to $1.10 billion from $1.08 billion, causing a $349,000 increase in interest income on loans. Interest income on taxable investment securities increased $16,000, or 0.6%, to $2.9 million for the three months ended June 30, 2025 compared to $2.8 million for the three months ended June 30, 2024 driven by a $18.5 million increase in average balances, partially offset by a 26 bp decrease in average yield. The increase in volume was driven by a $22.9 million increase in the average balance of collateralized loan obligation ('CLO') securities as the Bank executed a leverage strategy during 2024 to purchase these assets funded with cash reserves and brokered certificates of deposits. The decrease in yield resulted from the reductions in the federal funds rate since September 2024. Interest income on interest-earning deposits at other banks decreased $982,000 to $331,000 for the three months ended June 30, 2025 compared to $1.3 million for the three months ended June 30, 2024 driven by a 125 bp decrease in the average yield and a $67.7 million decrease in average balances. The decrease in the yield was directly related to the Federal Reserve's reductions in the federal funds rate. Interest expense decreased $1.2 million, or 16.7%, to $6.2 million for the three months ended June 30, 2025 compared to $7.5 million for the three months ended June 30, 2024. Interest expense on deposits decreased $1.3 million, or 19.0%, to $5.7 million for the three months ended June 30, 2025 compared to $7.1 million for the three months ended June 30, 2024. The cost of interest-bearing deposits declined 47 bps to 2.28% for the three months ended June 30, 2025 from 2.75% for the three months ended June 30, 2024 due to the change in the deposit mix and the recent Federal Reserve federal funds rate decreases. The decrease in the cost of interest-bearing deposits accounted for a $1.2 million reduction in interest expense. Average interest-bearing deposit balances decreased $27.2 million, or 2.6%, to $1.01 billion as of June 30, 2025 compared to $1.03 billion as of June 30, 2024, primarily as the Bank strategically reduced brokered deposits and time deposit only relationships. The decrease in average balances accounted for a $161,000 reduction in interest expense. Provision for Credit Losses A provision for credit losses of $8,000 was recorded for the three months ended June 30, 2025. The provision for credit losses - loans was a $136,000 recovery and was primarily due to a reduction of reserve required for individually assessed loans and changes in loan concentrations, partially offset by additional reserve required for overall loan growth and a change in qualitative factors relating to economic conditions. The provision for credit losses - unfunded commitments was $144,000 and was due to an increase in unfunded commitments and an increase in funding rates. This compared to a net recovery of $36,000 recorded for the three months ended June 30, 2024 as the provision for credit losses - loans was $12,000 and was primarily due to an increase in the reserve required for individually assessed loans, partially offset by a decrease in loan balances while the provision for credit losses - unfunded commitments was a recovery of $48,000 and was due to a decrease in loss rates. Noninterest Income Noninterest income increased $243,000, or 35.3%, to $931,000 for the three months ended June 30, 2025, compared to $688,000 for the three months ended June 30, 2024. This resulted primarily from a $205,000 increase in service fees primarily related to corporate deposit and Individual Covered Health Reimbursement Arrangement accounts. Noninterest Expense Noninterest expense decreased $236,000, or 2.6%, to $8.7 million for the three months ended June 30, 2025 compared to $9.0 million for the three months ended June 30, 2024. Occupancy expense decreased $324,000 due to environmental remediation costs related to a construction project on one of the Bank's office locations recognized only in 2024 and certain property management cost savings initiatives implemented in 2025. Intangible amortization decreased $264,000 as the Bank's core deposit intangibles were fully amortized in 2024. Data processing expense decreased $250,000 due to costs associated with the implementation of a new loan origination system and financial dashboard platform during mid-2024. Pennsylvania shares tax expense decreased $154,000 due to $217,000 of refunds received on amended returns filed for prior years. Legal and professional fees decreased $91,000 primarily due to timing differences related to internal and external audit and tax services. These decreases were partially offset as salaries and benefits increased $663,000, or 15.0%, to $5.1 million primarily due to merit increases, revenue producing staff additions and higher insurance benefit costs, partially offset by savings realized due to the reduction in force implemented earlier this year. Equipment expense increased $74,000 due to higher depreciation expense associated with interactive teller machines, security system upgrades and other equipment placed into service in 2024. Statement of Financial Condition Review Assets Total assets increased $36.4 million, or 2.5%, to $1.52 billion at June 30, 2025, compared to $1.48 billion at December 31, 2024. Cash and due from banks increased $14.9 million, or 30.1%, to $64.5 million at June 30, 2025, compared to $49.6 million at December 31, 2024. Securities increased $5.0 million, or 1.9%, to $267.2 million at June 30, 2025, compared to $262.2 million at December 31, 2024. The securities balance was primarily impacted by security purchases and an increase in the market value of the portfolio, partially offset by principal repayments on amortizing securities and the sale of equity securities. Loans and Credit Quality Total loans increased $18.2 million, or 1.7%, to $1.11 billion compared to $1.09 billion, and included increases in commercial real estate and commercial and industrial loans of $27.7 million and $26.2 million, respectively, partially offset by decreases in construction, consumer and residential real estate loans of $14.0 million, $13.1 million and $8.7 million, respectively. The decrease in consumer loans resulted from a reduction in indirect automobile loan production due to the discontinuation of this product offering as of June 30, 2023. This portfolio is expected to continue to decline as resources are allocated and production efforts are focused on more profitable commercial products. Excluding the $8.3 million decrease in indirect automobile loans, total loans increased $26.4 million, or 2.4%. Loan production totaled $97.0 million while $51.5 million of loans were paid off since December 31, 2024. The allowance for credit losses (ACL) was $9.7 million at June 30, 2025 and $9.8 million at December 31, 2024. As a result, the ACL to total loans was 0.88% at June 30, 2025 and 0.90% at December 31, 2024. During the current year, the Company recorded a net recovery for credit losses of $32,000. The allowance for credit losses to nonperforming assets was 505.0% at June 30, 2025 and 548.1% at December 31, 2024. Net recoveries for the three months ended June 30, 2025 were $39,000, or 0.01% of average loans on an annualized basis. Net charge-offs for the three months ended June 30, 2024 were $67,000, or 0.02% of average loans on an annualized basis. Net charge-offs for the six months ended June 30, 2025 were $15,000. Net charge-offs for the six months ended June 30, 2024 were $50,000. Nonperforming loans, which include nonaccrual loans and accruing loans past due 90 days or more, were $1.8 million at June 30, 2025 and December 31, 2024. Nonperforming loans to total loans ratio was 0.16% at June 30, 2025 and December 31, 2024. Liabilities Total liabilities increased $35.4 million, or 2.7%, to $1.37 billion at June 30, 2025 compared to $1.33 billion at December 31, 2024. Deposits Total deposits increased $25.9 million, or 2.0%, to $1.31 billion as of June 30, 2025 compared to $1.28 billion at December 31, 2024. Interest-bearing demand, non interest-bearing demand and savings deposits increased $36.7 million, $10.8 million and $1.5 million, respectively while time deposits decreased $16.7 million and money market deposits decreased $6.3 million, respectively. This favorable change in the deposit mix was the result of an increased focus on building core banking relationships while strategically reducing time deposit-only relationships. Brokered time deposits totaled $79.0 million as of June 30, 2025 and $39.0 million as of December 31, 2024, all of which mature within three months and were utilized to fund the purchase of floating rate CLO securities. At June 30, 2025, FDIC insured deposits totaled approximately 61.0% of total deposits while an additional 14.8% of total deposits were collateralized with investment securities. Accrued Interest Payable and Other Liabilities Accrued interest payable and other liabilities increased $9.5 million, or 59.6%, to $25.5 million at June 30, 2025, compared to $16.0 million at December 31, 2024 primarily due to $9.0 million of syndicated national credits not yet settled. Stockholders' Equity Stockholders' equity increased $984,000, or 0.7%, to $148.4 million at June 30, 2025, compared to $147.4 million at December 31, 2024. The key factors positively impacting stockholders' equity was $5.9 million of net income for the current year, a $2.9 million decrease in accumulated other comprehensive loss and $1.1 million of shares issued as a result of stock option exercises, partially offset by $6.8 million of treasury shares purchased under the stock repurchase program and the payment of $2.5 million in dividends since December 31, 2024. Book value per share Book value per common share was $29.84 at June 30, 2025 compared to $28.71 at December 31, 2024, an increase of $1.13. Tangible book value per common share (Non-GAAP) was $27.88 at June 30, 2025, compared to $26.82 at December 31, 2024, an increase of $1.06. Refer to 'Explanation of Use of Non-GAAP Financial Measures' at the end of this Press Release. About CB Financial Services, Inc. CB Financial Services, Inc. is the bank holding company for Community Bank, a Pennsylvania-chartered commercial bank. Community Bank operates its branch network in southwestern Pennsylvania and West Virginia. Community Bank offers a broad array of retail and commercial lending and deposit services. For more information about CB Financial Services, Inc. and Community Bank, visit our website at Statement About Forward-Looking Statements Statements contained in this press release that are not historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995 and such forward-looking statements are subject to significant risks and uncertainties. The Company intends such forward-looking statements to be covered by the safe harbor provisions contained in the Act. The Company's ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations and future prospects of the Company and its subsidiaries include, but are not limited to, general and local economic conditions, changes in market interest rates, deposit flows, demand for loans, real estate values and competition, competitive products and pricing, the ability of our customers to make scheduled loan payments, loan delinquency rates and trends, our ability to manage the risks involved in our business, our ability to control costs and expenses, inflation, market and monetary fluctuations, changes in federal and state legislation and regulation applicable to our business, actions by our competitors, and other factors that may be disclosed in the Company's periodic reports as filed with the Securities and Exchange Commission. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company assumes no obligation to update any forward-looking statements except as may be required by applicable law or regulation. (Dollars in thousands, except share and per share data) (Unaudited) Three Months Ended Six Months Ended Interest and Dividend Income: Loans, Including Fees $ 15,492 $ 14,528 $ 14,930 $ 14,945 $ 14,670 $ 30,020 $ 29,508 Securities: Taxable 2,860 2,777 3,096 3,289 2,844 5,637 5,148 Dividends 9 28 27 28 27 37 54 Other Interest and Dividend Income 399 514 1,378 1,511 1,398 912 2,216 Total Interest and Dividend Income 18,760 17,847 19,431 19,773 18,939 36,606 36,926 Interest Expense: Deposits 5,721 6,111 7,492 7,892 7,065 11,833 13,056 Short-Term Borrowings 108 23 — — — 131 — Other Borrowings 391 402 407 407 404 792 808 Total Interest Expense 6,220 6,536 7,899 8,299 7,469 12,756 13,864 Net Interest and Dividend Income 12,540 11,311 11,532 11,474 11,470 23,850 23,062 (Recovery) Provision for Credit Losses - Loans (136 ) 68 483 25 12 (68 ) (130 ) Provision (Recovery) for Credit Losses - Unfunded Commitments 144 (108 ) 200 (66 ) (48 ) 36 57 Net Interest and Dividend Income After Net Provision (Recovery) for Credit Losses 12,532 11,351 10,849 11,515 11,506 23,882 23,135 Noninterest Income: Service Fees 559 462 460 451 354 1,021 769 Insurance Commissions 1 1 1 1 1 2 3 Other Commissions 66 63 63 104 22 129 84 Net Gain on Sales of Loans 26 22 3 18 9 49 30 Net (Loss) Gain on Securities — (69 ) 3 245 (31 ) (69 ) (197 ) Net Gain on Purchased Tax Credits 4 4 12 12 12 7 25 Gain on Sale of Subsidiary — — — 138 — — — Net Gain on Disposal of Premises and Equipment — — — — — — 274 Income from Bank-Owned Life Insurance 148 149 152 147 147 297 295 Net Gain on Bank-Owned Life Insurance Claims — — — — — — 915 Other Income 127 155 961 117 174 282 406 Total Noninterest Income 931 787 1,655 1,233 688 1,718 2,604 Noninterest Expense: Salaries and Employee Benefits 5,088 6,036 5,258 4,561 4,425 11,124 9,001 Occupancy 616 750 652 755 940 1,366 1,689 Equipment 372 330 313 280 298 702 562 Data Processing 761 797 832 772 1,011 1,558 1,703 Federal Deposit Insurance Corporation Assessment 203 176 172 177 161 379 290 Pennsylvania Shares Tax 143 257 301 265 297 400 595 Contracted Services 382 310 522 431 390 692 671 Legal and Professional Fees 117 262 268 297 208 378 420 Advertising 124 119 137 141 78 242 206 Other Real Estate Owned 1 — 34 2 37 2 14 Amortization of Intangible Assets — — 88 264 264 — 605 Other Expense 941 765 876 837 875 1,706 1,656 Total Noninterest Expense 8,748 9,802 9,453 8,782 8,984 18,549 17,412 Income Before Income Tax Expense 4,715 2,336 3,051 3,966 3,210 7,051 8,327 Income Tax Expense 766 427 522 747 560 1,193 1,480 Net Income $ 3,949 $ 1,909 $ 2,529 $ 3,219 $ 2,650 $ 5,858 $ 6,847 Expand Three Months Ended Six Months Ended Per Common Share Data 6/30/25 3/31/25 12/31/24 9/30/24 6/30/24 6/30/25 6/30/24 Dividends Per Common Share $ 0.25 $ 0.25 $ 0.25 $ 0.25 $ 0.25 $ 0.50 $ 0.50 Earnings Per Common Share - Basic 0.79 0.37 0.49 0.63 0.52 1.15 1.33 Earnings Per Common Share - Diluted 0.74 0.35 0.46 0.60 0.51 1.09 1.33 Weighted Average Common Shares Outstanding - Basic 5,022,813 5,125,577 5,126,782 5,137,586 5,142,139 5,073,911 5,136,021 Expand 6/30/25 3/31/25 12/31/24 9/30/24 6/30/24 Common Shares Outstanding 4,972,300 5,099,069 5,132,654 5,129,921 5,141,911 Book Value Per Common Share $ 29.84 $ 29.08 $ 28.71 $ 29.07 $ 27.79 Tangible Book Value per Common Share (1) 27.88 27.17 26.82 27.16 25.83 Stockholders' Equity to Assets 9.8 % 10.0 % 9.9 % 9.5 % 9.2 % Tangible Common Equity to Tangible Assets (1) 9.2 9.4 9.4 9.0 8.6 Expand Three Months Ended Six Months Ended Selected Financial Ratios (2) 6/30/25 3/31/25 12/31/24 9/30/24 6/30/24 6/30/25 6/30/24 Return on Average Assets 1.06 % 0.53 % 0.65 % 0.84 % 0.71 % 0.80 % 0.93 % Return on Average Equity 10.76 5.24 6.80 8.80 7.58 8.01 9.80 Average Interest-Earning Assets to Average Interest-Bearing Liabilities 135.33 134.70 133.33 133.26 135.69 135.02 136.36 Average Equity to Average Assets 9.88 10.07 9.63 9.54 9.36 9.97 9.54 Net Interest Rate Spread 2.91 2.61 2.41 2.36 2.44 2.76 2.55 Net Interest Rate Spread (FTE) (1) 2.93 2.63 2.42 2.38 2.46 2.78 2.56 Net Interest Margin 3.54 3.27 3.12 3.11 3.18 3.40 3.27 Net Interest Margin (FTE) (1) 3.55 3.28 3.13 3.12 3.19 3.42 3.28 Net Charge-Offs (Recoveries) to Average Loans (0.01 ) 0.02 0.06 0.03 0.02 — 0.01 Efficiency Ratio 64.94 81.02 71.68 69.11 73.89 72.55 67.84 Expand Asset Quality Ratios 6/30/25 3/31/25 12/31/24 9/30/24 6/30/24 Allowance for Credit Losses to Total Loans 0.88 % 0.90 % 0.90 % 0.89 % 0.88 % Allowance for Credit Losses to Nonperforming Loans (3) 550.20 414.48 548.07 463.07 513.03 Delinquent and Nonaccrual Loans to Total Loans (4) 0.49 0.54 0.72 0.98 0.53 Nonperforming Loans to Total Loans (3) 0.16 0.22 0.16 0.19 0.17 Nonperforming Assets to Total Assets (5) 0.13 0.16 0.12 0.14 0.13 Expand Capital Ratios (6) 6/30/25 3/31/25 12/31/24 9/30/24 6/30/24 Common Equity Tier 1 Capital (to Risk Weighted Assets) 15.28 % 14.94 % 14.78 % 14.79 % 14.62 % Tier 1 Capital (to Risk Weighted Assets) 15.28 14.94 14.78 14.79 14.62 Total Capital (to Risk Weighted Assets) 16.29 15.95 15.79 15.76 15.61 Tier 1 Leverage (to Adjusted Total Assets) 10.49 10.36 9.98 9.96 9.98 Expand (1) Refer to Explanation of Use of Non-GAAP Financial Measures in this Press Release for the calculation of the measure and reconciliation to the most comparable GAAP measure. (2) Interim period ratios are calculated on an annualized basis. (3) Nonperforming loans consist of all nonaccrual loans and accruing loans that are 90 days or more past due. (4) Delinquent loans consist of accruing loans that are 30 days or more past due. (5) Nonperforming assets consist of nonperforming loans and other real estate owned. (6) Capital ratios are for Community Bank only. Expand AVERAGE BALANCES AND YIELDS Three Months Ended June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 (Dollars in thousands) (Unaudited) Assets: Interest-Earning Assets: Loans, Net (2) $ 1,098,698 $ 15,549 5.68 % $ 1,075,083 $ 14,584 5.50 % $ 1,066,304 $ 14,975 5.59 % $ 1,063,946 $ 14,987 5.60 % $ 1,076,455 $ 14,711 5.50 % Debt Securities Taxable 284,499 2,860 4.02 278,362 2,777 3.99 284,002 3,096 4.36 288,208 3,289 4.56 266,021 2,844 4.28 Equity Securities 1,000 9 3.60 2,674 28 4.19 2,693 27 4.01 2,693 28 4.16 2,693 27 4.01 Interest-Earning Deposits at Banks 33,564 331 3.94 45,056 459 4.07 114,245 1,338 4.68 111,131 1,448 5.21 101,277 1,313 5.19 Other Interest-Earning Assets 3,767 68 7.24 3,196 55 6.98 3,070 40 5.18 3,108 63 8.06 3,154 85 10.84 Total Interest-Earning Assets 1,421,528 18,817 5.31 1,404,371 17,903 5.17 1,470,314 19,476 5.27 1,469,086 19,815 5.37 1,449,600 18,980 5.27 Noninterest-Earning Assets 67,513 63,324 65,786 57,602 53,564 Total Assets $ 1,489,041 $ 1,467,695 $ 1,536,100 $ 1,526,688 $ 1,503,164 Liabilities and Stockholders' Equity: Interest-Bearing Liabilities: Interest-Bearing Demand Accounts $ 334,752 $ 1,677 2.01 % $ 317,799 $ 1,526 1.95 % $ 328,129 $ 1,838 2.23 % $ 316,301 $ 1,923 2.42 % $ 325,069 $ 1,858 2.30 % Money Market Accounts 238,195 1,747 2.94 230,634 1,726 3.04 227,606 1,821 3.18 217,148 1,726 3.16 214,690 1,646 3.08 Savings Accounts 174,055 42 0.10 172,322 41 0.10 170,612 45 0.10 175,753 46 0.10 184,944 52 0.11 Time Deposits 259,506 2,255 3.49 285,093 2,818 4.01 341,686 3,788 4.41 358,498 4,197 4.66 308,956 3,509 4.57 Total Interest-Bearing Deposits 1,006,508 5,721 2.28 1,005,848 6,111 2.46 1,068,033 7,492 2.79 1,067,700 7,892 2.94 1,033,659 7,065 2.75 Short-Term Borrowings 9,143 108 4.74 1,985 23 4.70 — — — — — — 2 — — Other Borrowings 34,733 391 4.52 34,723 402 4.70 34,713 407 4.66 34,702 407 4.67 34,692 404 4.68 Total Interest-Bearing Liabilities 1,050,384 6,220 2.38 1,042,556 6,536 2.54 1,102,746 7,899 2.85 1,102,402 8,299 2.99 1,068,353 7,469 2.81 Noninterest-Bearing Demand Deposits 270,729 265,522 267,598 263,650 272,280 Total Funding and Cost of Funds 1,321,113 1.89 1,308,078 2.03 1,370,344 2.29 1,366,052 2.42 1,340,633 2.24 Other Liabilities 20,789 11,854 17,883 15,043 21,867 Total Liabilities 1,341,902 1,319,932 1,388,227 1,381,095 1,362,500 Stockholders' Equity 147,139 147,763 147,873 145,593 140,664 Total Liabilities and Stockholders' Equity $ 1,489,041 $ 1,467,695 $ 1,536,100 $ 1,526,688 $ 1,503,164 Net Interest Income (FTE) (Non-GAAP) (3) $ 12,597 $ 11,367 $ 11,577 $ 11,516 $ 11,511 Net Interest-Earning Assets (4) 371,144 361,815 367,568 366,684 381,247 Net Interest Rate Spread (FTE) (Non-GAAP) (3) (5) 2.93 % 2.63 % 2.42 % 2.38 % 2.46 % Net Interest Margin (FTE) (Non-GAAP) (3)(6) 3.55 3.28 3.13 3.12 3.19 Expand (1) Annualized based on three months ended results. (2) Net of the allowance for credit losses and includes nonaccrual loans with a zero yield and Loans Held for Sale if applicable. (3) Refer to Explanation and Use of Non-GAAP Financial Measures in this Press Release for the calculation of the measure and reconciliation to the most comparable GAAP measure. (4) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. (5) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. (6) Net interest margin represents annualized net interest income divided by average total interest-earning assets. Expand AVERAGE BALANCES AND YIELDS Six Months Ended June 30, 2024 Assets: Interest-Earning Assets: Loans, Net (2) $ 1,086,955 $ 30,132 5.59 % $ 1,082,172 $ 29,586 5.50 % Debt Securities Taxable 281,447 5,637 4.01 250,912 5,148 4.10 Marketable Equity Securities 1,832 37 4.04 2,693 54 4.01 Interest-Earning Deposits at Banks 39,278 789 4.02 80,082 2,045 5.11 Other Interest-Earning Assets 3,484 123 7.12 3,195 171 10.76 Total Interest-Earning Assets 1,412,996 36,718 5.24 1,419,054 37,004 5.24 Noninterest-Earning Assets 65,758 54,141 Total Assets $ 1,478,754 $ 1,473,195 Liabilities and Stockholders' Equity: Interest-Bearing Liabilities: Interest-Bearing Demand Accounts $ 326,322 $ 3,203 1.98 % $ 329,974 $ 3,653 2.23 % Savings Accounts 173,193 83 0.10 188,194 111 0.12 Money Market Accounts 234,436 3,473 2.99 209,279 3,159 3.04 Time Deposits 272,229 5,074 3.76 278,538 6,133 4.43 Total Interest-Bearing Deposits 1,006,180 11,833 2.37 1,005,985 13,056 2.61 Short-Term Borrowings 5,584 131 4.73 1 — — Other Borrowings 34,728 792 4.60 34,687 808 4.68 Total Interest-Bearing Liabilities 1,046,492 12,756 2.46 1,040,673 13,864 2.68 Noninterest-Bearing Demand Deposits 268,140 275,485 Total Funding and Cost of Funds 1,314,632 1.96 1,316,158 2.12 Other Liabilities 16,673 16,559 Total Liabilities 1,331,305 1,332,717 Stockholders' Equity 147,449 140,478 Total Liabilities and Stockholders' Equity $ 1,478,754 $ 1,473,195 Net Interest Income (FTE) (Non-GAAP) (3) 23,962 23,140 Net Interest-Earning Assets (4) 366,504 378,381 Net Interest Rate Spread (FTE) (Non-GAAP) (3)(5) 2.78 % 2.56 % Net Interest Margin (FTE) (Non-GAAP) (3)(6) 3.42 3.28 Expand (1) Annualized based on six months ended results. (2) Net of the allowance for credit losses and includes nonaccrual loans with a zero yield and Loans Held for Sale if applicable. (3) Refer to Explanation and Use of Non-GAAP Financial Measures in this Press Release for the calculation of the measure and reconciliation to the most comparable GAAP measure. (4) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. (5) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. (6) Net interest margin represents annualized net interest income divided by average total interest-earning assets. Expand Explanation of Use of Non-GAAP Financial Measures In addition to financial measures presented in accordance with generally accepted accounting principles ('GAAP'), we use, and this Press Release contains or references, certain Non-GAAP financial measures. We believe these Non-GAAP financial measures provide useful information in understanding our underlying results of operations or financial position and our business and performance trends as they facilitate comparisons with the performance of other companies in the financial services industry. Non-GAAP adjusted items impacting the Company's financial performance are identified to assist investors in providing a complete understanding of factors and trends affecting the Company's business and in analyzing the Company's operating results on the same basis as that applied by management. Although we believe that these Non-GAAP financial measures enhance the understanding of our business and performance, they should not be considered an alternative to GAAP or considered to be more important than financial results determined in accordance with GAAP, nor are they necessarily comparable with similar Non-GAAP measures which may be presented by other companies. Where Non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found herein. 6/30/25 3/31/25 12/31/24 9/30/24 6/30/24 (Dollars in thousands, except share and per share data) (Unaudited) Total Assets (GAAP) $ 1,517,984 $ 1,483,456 $ 1,481,564 $ 1,561,741 $ 1,560,259 Goodwill and Intangible Assets, Net (9,732 ) (9,732 ) (9,732 ) (9,820 ) (10,085 ) Tangible Assets (Non-GAAP) (Numerator) $ 1,508,252 $ 1,473,724 $ 1,471,832 $ 1,551,921 $ 1,550,174 Stockholders' Equity (GAAP) $ 148,362 $ 148,289 $ 147,378 $ 149,140 $ 142,882 Goodwill and Intangible Assets, Net (9,732 ) (9,732 ) (9,732 ) (9,820 ) (10,085 ) Tangible Common Equity or Tangible Book Value (Non-GAAP) (Denominator) $ 138,630 $ 138,557 $ 137,646 $ 139,320 $ 132,797 Stockholders' Equity to Assets (GAAP) 9.8 % 10.0 % 9.9 % 9.5 % 9.2 % Tangible Common Equity to Tangible Assets (Non-GAAP) 9.2 % 9.4 % 9.4 % 9.0 % 8.6 % Common Shares Outstanding (Denominator) 4,972,300 5,099,069 5,132,654 5,129,921 5,141,911 Book Value per Common Share (GAAP) $ 29.84 $ 29.08 $ 28.71 $ 29.07 $ 27.79 Tangible Book Value per Common Share (Non-GAAP) $ 27.88 $ 27.17 $ 26.82 $ 27.16 $ 25.83 Expand Three Months Ended Six Months Ended 6/30/25 3/31/25 12/31/24 9/30/24 6/30/24 6/30/25 6/30/24 (Dollars in thousands) (Unaudited) Net Income (GAAP) $ 3,949 $ 1,909 $ 2,529 $ 3,219 $ 2,650 $ 5,858 $ 6,847 Amortization of Intangible Assets, Net — — 88 264 264 — 605 Adjusted Net Income (Non-GAAP) (Numerator) $ 3,949 $ 1,909 $ 2,617 $ 3,483 $ 2,914 $ 5,858 $ 7,452 Annualization Factor 4.01 4.06 3.98 3.98 4.02 2.02 2.01 Average Stockholders' Equity (GAAP) $ 147,139 $ 147,763 $ 147,873 $ 145,593 $ 140,664 $ 147,449 $ 140,478 Average Goodwill and Intangible Assets, Net (9,732 ) (9,732 ) (9,758 ) (9,987 ) (10,242 ) (9,732 ) (10,398 ) Average Tangible Common Equity (Non-GAAP) (Denominator) $ 137,407 $ 138,031 $ 138,115 $ 135,606 $ 130,422 $ 137,717 $ 130,080 Return on Average Equity (GAAP) 10.76 % 5.24 % 6.80 % 8.80 % 7.58 % 8.01 % 9.80 % Return on Average Tangible Common Equity (Non-GAAP) 11.53 % 5.61 % 7.54 % 10.22 % 8.99 % 8.58 % 11.52 % Expand Three Months Ended Six Months Ended 6/30/25 3/31/25 12/31/24 9/30/24 6/30/24 6/30/25 6/30/24 (Dollars in thousands) (Unaudited) Interest Income (GAAP) $ 18,760 $ 17,847 $ 19,431 $ 19,773 $ 18,939 $ 36,606 $ 36,926 Adjustment to FTE Basis 57 56 45 42 41 112 78 Interest Income (FTE) (Non-GAAP) 18,817 17,903 19,476 19,815 18,980 36,718 37,004 Interest Expense (GAAP) 6,220 6,536 7,899 8,299 7,469 12,756 13,864 Net Interest Income (FTE) (Non-GAAP) $ 12,597 $ 11,367 $ 11,577 $ 11,516 $ 11,511 $ 23,962 $ 23,140 Net Interest Rate Spread (GAAP) 2.91 % 2.61 % 2.41 % 2.36 % 2.44 % 2.76 % 2.55 % Adjustment to FTE Basis 0.02 0.02 0.01 0.02 0.02 0.02 0.01 Net Interest Rate Spread (FTE) (Non-GAAP) 2.93 % 2.63 % 2.42 % 2.38 % 2.46 % 2.78 % 2.56 % Net Interest Margin (GAAP) 3.54 % 3.27 % 3.12 % 3.11 % 3.18 % 3.40 % 3.27 % Adjustment to FTE Basis 0.01 0.01 0.01 0.01 0.01 0.02 0.01 Net Interest Margin (FTE) (Non-GAAP) 3.55 % 3.28 % 3.13 % 3.12 % 3.19 % 3.42 % 3.28 % Expand Three Months Ended Six Months Ended 6/30/25 3/31/25 12/31/24 9/30/24 6/30/24 6/30/25 6/30/24 (Dollars in thousands) (Unaudited) Income Before Income Tax Expense (GAAP) $ 4,715 $ 2,336 $ 3,051 $ 3,966 $ 3,210 $ 7,051 $ 8,327 Net Provision (Recovery) for Credit Losses 8 (40 ) 683 (41 ) (36 ) (32 ) (73 ) PPNR (Non-GAAP) 4,723 2,296 3,734 3,925 3,174 7,019 8,254 Adjustments Net Loss (Gain) on Securities — 69 (3 ) (245 ) 31 69 197 Gain on Sale of Subsidiary — — — (138 ) — — — Net Gain on Disposal of Premises and Equipment — — — — — — (274 ) Earn-out Payment Related to the Sale of EU — (49 ) (708 ) — — (49 ) — Net Gain on Bank-Owned Life Insurance Claims — — — — — — (915 ) Reduction in Force Expenses — 1,003 — — — Adjusted PPNR (Non-GAAP) (Numerator) $ 4,723 $ 3,319 $ 3,023 $ 3,542 $ 3,205 $ 7,039 $ 7,262 Annualization Factor 4.01 4.06 3.98 3.98 4.02 2.02 2.01 Average Assets (Denominator) $ 1,489,041 $ 1,467,695 $ 1,536,100 $ 1,526,688 $ 1,503,164 $ 1,478,754 $ 1,473,195 Adjusted PPNR Return on Average Assets (Non-GAAP) 1.27 % 0.92 % 0.78 % 0.92 % 0.86 % 0.96 % 0.99 % Expand Three Months Ended Six Months Ended 6/30/25 3/31/25 12/31/24 9/30/24 6/30/24 6/30/25 6/30/24 (Dollars in thousands, except share and per share data) (Unaudited) Net Income (GAAP) $ 3,949 $ 1,909 $ 2,529 $ 3,219 $ 2,650 $ 5,858 $ 6,847 Adjustments Net Loss (Gain) on Securities — 69 (3 ) (245 ) 31 69 197 Gain on Sale of Subsidiary — — — (138 ) — — — Net Gain on Disposal of Premises and Equipment — — — — — — (274 ) Earn-out Payment Related to the Sale of EU — (49 ) (708 ) — — (49 ) — Net Gain on Bank-Owned Life Insurance Claims — — — — — — (915 ) Reduction in Force Expenses — 1,003 — — — 1,003 — Tax effect — (215 ) 149 90 (7 ) (215 ) 16 Adjusted Net Income (Non-GAAP) $ 3,949 $ 2,717 $ 1,967 $ 2,926 $ 2,674 $ 6,666 $ 5,871 Weighted-Average Diluted Common Shares and Common Stock Equivalents Outstanding 5,332,026 5,471,006 5,544,829 5,346,750 5,152,657 5,387,924 5,151,188 Earnings per Common Share - Diluted (GAAP) $ 0.74 $ 0.35 $ 0.46 $ 0.60 $ 0.51 $ 1.09 $ 1.33 Adjusted Earnings per Common Share - Diluted (Non-GAAP) $ 0.74 $ 0.50 $ 0.35 $ 0.55 $ 0.52 $ 1.24 $ 1.14 Net Income (GAAP) (Numerator) $ 3,949 $ 1,909 $ 2,529 $ 3,219 $ 2,650 $ 5,858 $ 6,847 Annualization Factor 4.01 4.06 3.98 3.98 4.02 2.02 2.01 Average Assets (Denominator) 1,489,041 1,467,695 1,536,100 1,526,688 1,503,164 1,478,754 1,473,195 Return on Average Assets (GAAP) 1.06 % 0.53 % 0.65 % 0.84 % 0.71 % 0.80 % 0.93 % Adjusted Net Income (Non-GAAP) (Numerator) $ 3,949 $ 2,717 $ 1,967 $ 2,926 $ 2,674 $ 6,666 $ 5,871 Annualization Factor 4.01 4.06 3.98 3.98 4.02 2.02 2.01 Average Assets (Denominator) 1,489,041 1,467,695 1,536,100 1,526,688 1,503,164 1,478,754 1,473,195 Adjusted Return on Average Assets (Non-GAAP) 1.06 % 0.75 % 0.51 % 0.76 % 0.72 % 0.91 % 0.80 % Expand Three Months Ended Six Months Ended 6/30/25 3/31/25 12/31/24 9/30/24 6/30/24 6/30/25 6/30/24 (Dollars in thousands) (Unaudited) Net Income (GAAP) (Numerator) $ 3,949 $ 1,909 $ 2,529 $ 3,219 $ 2,650 $ 5,858 $ 6,847 Annualization Factor 4.01 4.06 3.98 3.98 4.02 2.02 2.01 Average Equity (GAAP) (Denominator) 147,139 147,763 147,873 145,593 140,664 147,449 140,478 Return on Average Equity (GAAP) 10.76 % 5.24 % 6.80 % 8.80 % 7.58 % 8.01 % 9.80 % Adjusted Net Income (Non-GAAP) (Numerator) $ 3,949 $ 2,717 $ 1,967 $ 2,926 $ 2,674 $ 6,666 $ 5,871 Annualization Factor 4.01 4.06 3.98 3.98 4.02 2.02 2.01 Average Equity (GAAP) (Denominator) 147,139 147,763 147,873 145,593 140,664 147,449 140,478 Adjusted Return on Average Equity (Non-GAAP) 10.76 % 7.46 % 5.29 % 8.00 % 7.65 % 9.12 % 8.40 % Expand
Yahoo
14-07-2025
- Business
- Yahoo
Why Are Veritex Holdings (VBTX) Shares Soaring Today
Shares of texas-based bank holding company Veritex Holdings (NASDAQGM:VBTX) jumped 19.4% in the morning session after it was announced that the company will be acquired by Huntington Bancshares (HBAN) in a $1.9 billion all-stock transaction. The deal saw Huntington exchange 1.95 of its shares for each share of Veritex. Based on Huntington's closing price on July 11, 2025, this implied a value of $33.91 per Veritex share, representing a significant premium for shareholders and explaining the stock's sharp upward move. The acquisition was a strategic move for Huntington to accelerate its growth in key Texas markets, including Dallas/Fort Worth and Houston, where Veritex had a strong presence with over 30 branches. The deal added approximately $13 billion in assets, $9 billion in loans, and $11 billion in deposits to Huntington's portfolio. The transaction was expected to close in the fourth quarter of 2025, pending regulatory approvals. Is now the time to buy Veritex Holdings? Access our full analysis report here, it's free. Veritex Holdings's shares are not very volatile and have only had 8 moves greater than 5% over the last year. Moves this big are rare for Veritex Holdings and indicate this news significantly impacted the market's perception of the business. Veritex Holdings is up 23.9% since the beginning of the year, and at $32.69 per share, has set a new 52-week high. Investors who bought $1,000 worth of Veritex Holdings's shares 5 years ago would now be looking at an investment worth $2,062. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
24-06-2025
- Business
- Yahoo
QCRH Q1 Deep Dive: Lower Revenue Amid Uncertainty, Deposit and Margin Gains Support Outlook
Midwest regional bank QCR Holdings (NASDAQGM:QCRH) fell short of the market's revenue expectations in Q1 CY2025, with sales falling 14.7% year on year to $76.88 million. Its non-GAAP profit of $1.53 per share was 1.2% above analysts' consensus estimates. Is now the time to buy QCRH? Find out in our full research report (it's free). Revenue: $76.88 million vs analyst estimates of $86.89 million (14.7% year-on-year decline, 11.5% miss) Adjusted EPS: $1.53 vs analyst estimates of $1.51 (1.2% beat) Market Capitalization: $1.09 billion QCR Holdings' first quarter results were met with a negative market reaction, reflecting revenue that fell short of Wall Street expectations. Management attributed the revenue decline primarily to delayed activity in its Low-Income Housing Tax Credit (LIHTC) lending business and elevated loan payoffs, which CEO Larry Helling described as 'pretty normal' but driven by clients selling real estate or companies. While loan growth was muted, strong deposit inflows and disciplined expense management helped offset some of these headwinds. Lower capital markets revenue also led to reduced variable compensation, which contributed to an overall decline in expenses for the quarter. Looking forward, QCR Holdings' outlook is shaped by continued macroeconomic uncertainty and shifting client sentiment, especially in commercial lending and LIHTC-related projects. Management now expects only moderate loan growth in the near term, citing clients' hesitancy to commit to new investments until there is more economic clarity. President and incoming CEO Todd Gipple noted that, 'the timing is really going to be dependent on the pace of growth we see in LIHTC,' and emphasized that expense levels will remain flexible, adjusting with business activity. The company also remains focused on building capital and maintaining strong liquidity as it navigates uncertain conditions. Management identified delayed LIHTC project activity, robust core deposit growth, and expense flexibility as central factors shaping the quarter's performance and outlook. LIHTC lending slowdown: Macroeconomic and political uncertainty led to delays in LIHTC (Low-Income Housing Tax Credit) lending projects, suppressing capital markets revenue. CEO Larry Helling said, 'the first quarter in this business is typically the lowest quarter of the year,' but this was exacerbated by developers pausing projects due to unclear conditions in Washington, D.C. Deposit growth strengthens liquidity: Core deposit growth remained a focus, with management reporting a 20% annualized increase for the quarter. This allowed QCR Holdings to reduce reliance on higher-cost wholesale funding and improve its liquidity position. President Todd Gipple highlighted, 'Deposits are our big focus. So we want to keep growing deposits.' Expense flexibility via compensation model: Non-interest expenses dropped primarily due to lower variable compensation tied to reduced capital markets revenue and loan growth. Management emphasized its compensation structure, which adjusts rapidly to changing business conditions, helping the company manage costs during periods of slower growth. Asset quality steady despite credit normalization: Asset quality remained solid, with non-performing assets and criticized loans at low levels. Management noted that a few new nonaccrual loans reflected 'normal movement' rather than any common sector issue, and ongoing reviews of client exposure to tariffs and macro risks continue. Securitization as capital management tool: While no specific timeline was set for the next loan securitization, management highlighted its importance for managing concentration, liquidity, and regulatory capital as the LIHTC lending pipeline recovers. Upcoming securitizations—possibly in the $350 million range—are expected to free up capital and improve flexibility as the business grows. QCR Holdings expects its near-term performance to be driven by client sentiment, interest rate dynamics, and the pace of recovery in LIHTC lending. Pacing of LIHTC recovery: Management believes improvement in LIHTC project activity will be key for revenue and capital markets performance. Helling stated that recent stabilization in Washington could help projects move forward, but the timing remains uncertain, with a 'pause' expected for another quarter or two. Interest rate environment influences margins: The company's liability-sensitive balance sheet benefits from Federal Reserve rate cuts, as lower funding costs support net interest margin expansion. Gipple noted that for each 25 basis point rate cut, margin could improve by two to three basis points, but the shape of the yield curve may become a bigger factor later in the year. Deposit and expense management: Sustained growth in core deposits and disciplined expense control—especially variable compensation—are expected to support capital levels and profitability. Management will reassess expense guidance upward only if loan growth and capital markets activity normalize. In the coming quarters, the StockStory team will monitor (1) the pace of recovery in LIHTC and capital markets activity, (2) core deposit growth and its effect on funding costs, and (3) management's ability to control expenses while scaling business lines like wealth management. Additionally, we will watch for announcements on loan securitizations and any shifts in the interest rate environment that could impact net interest margins. QCR Holdings currently trades at $65.47, down from $67.84 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
Yahoo
23-06-2025
- Business
- Yahoo
VBTX Q1 Deep Dive: Deposit Remixing, Cost Control, and Cautious Loan Growth Shape Results
Texas-based bank holding company Veritex Holdings (NASDAQGM:VBTX) met Wall Street's revenue expectations in Q1 CY2025, with sales up 4.2% year on year to $110.2 million. Its non-GAAP profit of $0.54 per share was 5.2% above analysts' consensus estimates. Is now the time to buy VBTX? Find out in our full research report (it's free). Revenue: $110.2 million vs analyst estimates of $110.2 million (4.2% year-on-year growth, in line) Adjusted EPS: $0.54 vs analyst estimates of $0.51 (5.2% beat) Market Capitalization: $1.32 billion Veritex Holdings' first quarter results were well received by the market, as the company delivered revenue growth and exceeded Wall Street's non-GAAP profit expectations. Management attributed the quarter's performance to disciplined deposit remixing, tighter expense control, and continued balance sheet strength. CEO Malcolm Holland emphasized initiatives to reduce high-cost funding and increase lower-cost relationship deposits, while also highlighting stable credit metrics and rising tangible book value. Chief Financial Officer Terry Earley noted, 'Fee income continues to build momentum across every category. Increased attention to expenses is showing encouraging results, and loan production has increased meaningfully.' Looking forward, management is focused on maintaining net interest margin (NIM) stability through ongoing deposit repricing efforts and further investments in commercial banking talent, even as loan growth remains muted. The company expects loan production to translate into growth in 2026, while remaining cautious about payoff trends and broader economic uncertainties. Earley cautioned that, although expense discipline remains a priority, some increase is expected due to strategic hiring. Will Holford, Chief Operating Officer, pointed to growing momentum in government-guaranteed lending and fee income, stating, 'You don't see it all yet, but you can feel the momentum. We're not hanging on one area. Every single area is contributing.' Management attributed first quarter results to deposit portfolio remixing, cost reductions, and stable credit, while acknowledging continued headwinds from elevated loan payoffs and muted loan growth. Deposit Remixing Success: Veritex reduced its reliance on higher-cost brokered and public deposits, replacing them with lower-cost relationship deposits. This shift contributed to a decline in overall deposit costs and helped expand net interest margin, as highlighted by the management team during the call. Expense Discipline: Management maintained a strong focus on controlling non-interest expenses, resulting in a lower operating efficiency ratio. While some expense growth is anticipated due to ongoing investments in commercial banker hires, the company does not expect spending to return to previous high levels. Muted Loan Growth: Elevated loan payoffs continued to offset strong loan production, resulting in a net decrease in total loans during the quarter. Management views this as an industry-wide challenge and cited a robust loan pipeline that is expected to support growth in 2026. Stable Credit Quality: Chief Credit Officer Curtis Anderson noted improvement in criticized and past-due loans, with charge-offs remaining below forecast. The increase in non-performing assets was largely related to two specific loans in retail and office real estate, which are expected to reach resolution by early third quarter. Capital Actions and Shareholder Returns: The company increased its quarterly dividend by 10% and repurchased 377,000 shares, with minimal tangible book value dilution. Management remains opportunistic regarding further buybacks, particularly if shares trade below tangible book value. Veritex's outlook centers on navigating muted loan growth, maintaining NIM stability, and growing fee income through government-guaranteed lending and C&I expansion. Loan Growth Dependent on Production and Payoffs: Management expects loan growth to remain flat for the year, with the potential for expansion in 2026 as a substantial loan pipeline converts to funded balances. Elevated payoffs, particularly in commercial real estate, remain a key headwind. Net Interest Margin and Deposit Strategy: The company anticipates stable NIM through continued deposit repricing and remixing, even as interest rate uncertainty and repricing of maturing certificates of deposit present risks. A large portion of the deposit book carries short maturities, allowing Veritex to react quickly to rate changes. Fee Income and Government Lending Momentum: Management is optimistic about further growth in fee-based income streams, especially from Small Business Administration (SBA) and other government-guaranteed lending. Investments in specialized lending teams and treasury management are expected to diversify revenue and offset lower loan growth. In the coming quarters, our team will be watching (1) whether loan growth materializes as the current pipeline is funded and payoffs moderate, (2) the pace of deposit cost declines as CDs reprice and remixing efforts continue, and (3) further growth in fee income, particularly from SBA and government-guaranteed lending. Progress on credit resolution and expense management will also be key signposts. Veritex Holdings currently trades at $24.30, up from $22.09 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
