Veritex (VBTX) 24 Jul 182018 Q2 Earnings call transcript

Company Profile

Participants

Susan Caudle	Investor Relations Officer and Secretary
Malcolm Holland	Chairman and Chief Executive Officer
Noreen Skelly	Chief Financial Officer
Manny Mehos	Chairman of Green Bancorp
Terry Earley	CFO of Green Bank
Clay Riebe	Chief Credit Officer.
Matt Olney	Stephens
Brad Gailey	KBW
Gary Tenner	D.A. Davidson
Brad Milsaps	Sandler O'Neill
Michael Young	SunTrust
Brett Rabatin	Piper Jaffray

Call transcript

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Operator

Good day, and welcome to the Veritex Holdings, Second Quarter 2018 Earnings Conference Call and Webcast. All participants will be in a listen-only mode. Please note, this event is being recorded. I would now like to turn the conference over to Ms. Susan Caudle, Investor Relations Officer and Secretary to the Board of Veritex Holdings.

Susan Caudle

you. Thank

could obligation started, forward-looking remind are statements slide no any risks revise Safe-Harbor uncertainties Slide get presentation beginning presentation that if subject including publicly like this webcast, please X. anticipated and forward-looking include into on are and may and that I’d we differ. you our to this logged to our At to refer results time, Before to actual The cause undertakes Company those statement. you statements to our statement

For please during those our statement are by subject of website, you joining Safe call on today’s note and us phone, that available made Safe-Harbor that statement. to the comments are veritexbank.com. All Harbor presentation

will full our operating we're well Bancorp. basis, Green be be on our with some merger turn announcement addition, and website. Malcolm Green our By the the In and Holland. I’ll a both additional management things underlying found about CEO, core better released the An earnings can on Chairman discussed which reflects now presentation performance the of as you've seen releases now business. our for to Veritex over of as the sure metrics believes non-GAAP second investor quarter financial

Malcolm Holland

questions. and This Officer. of Skelly, have Green. our lot I Riebe, Bancorp; Susan. Terry Noreen CFO sure well incredibly With you, Earley, Credit Manny cover and is for Chairman several as have for both CFO Green of know Thank Green as a me exciting Chief got have you Veritex and day to Mehos, today I Veritex; of we Clay I’m Bank;

then earnings our high questions. our We followed Noreen Terry, are and right into quarter start move and will second going summary by we summaries to by merger details level with and

Noreen Skelly

morning. good Malcolm, you, Thank

our I’m for our earnings a can Susan found to in As XK happy quarter Veritex. filed release website. be been regular report said, on great

diluted commitment. share. $X.XX We was annualized the XX% loan production Our with QX $XX.X of had second growth for million loan quarter new net strong per or income record and

lower to savings from our expected Our lower the expenses to XXX,XXX expect third core quarter position expenses XXX,XXX came and noninterest increase and we I I in on between building. and achievement in the rate fill in and professional with as QX. expenses our than to run compared acquisitions expense take fourth more increased origination space to differed and of see cost headquarter open

basis but Our core last anticipated on NIM down than call. quarter better X point was I first X.XX%, our from earnings

was X.XX may recall X.XX. to my guidance You

yield increase to with continue see the rate loan expansions by each Fed. a We

rate increases XX this in basis QX NIM cost to being market deposit and our benefit and However, quarter and X increasing deposit from basis the points, rephrasing BMO when in of rates. all loan increased The and in earnings to goal judicious Also while to between rate remainder money I primarily accounting onetime to amortization on related points XX basis purchase world to change our series. is deposits. X is growth basis stay series expect and XX to points deposits related growth correspondent asset over year. that future by it EPS increase the let our for going remainder of me points leader is quality Terry. turn the With very of margin

Terry Earley

$X.XX is to was credit, Starting not were up or say talk quarter. good everything Green's There about really Thanks, to $X.XX, anything not like I Noreen. about whether it per or are in looking be and the It's quarter. earnings, growth Good diluted earnings improved. morning with love everybody. QX. here at share from to second you to earnings Needless

was XX.X% assets at average on tangible XXX. common return and over our average equity our on XX.X% earnings, return to of Speaking

out Talking the our basis. about QX of Xth ratio back rate consecutive there our efficiency growth production this of pipelines us X came the of operating Veritex, X.XX% you growth, secondary back that's in off to We in for And and been we an just $XXX lot quarter we've are our million seasonality points a lot offerings XX.X%, improved we've annualized on XX efficiency an we in like QX our XX.X, to production said was pay-offs feel Our cost and basis under with great basis journey good. our strong. ratio new on momentum and as and of loan we and that of NIM got a if under was expanded lot results head operating on May to call. thought QX XX%

as On progress I'm of into there we momentum go. lot so, the the X% a from heading decreased credit improvement very X.XX, there, into Veritex. side the to NPAs that and about again with excited this to more have our QX merger tremendous down

in and average assets X, Page right shows graph really pre-provision on my view the power the so the our return about with to pre-provision. on of like and the to raising rates. the return Fed model Turning and the benefitting end company, turned quarter. certainly we're the with strong operating on earnings continue we've model pre-tax from really pre-tax demographics that The branch with we build And markets with

by improve of coming continues see pre-provision this to going sensitivity And ROA. to evidenced pre-tax asset in and earnings is we're and our And XXX continue XXX to ROA so metrics. really a through a playout credit as our is all

the bottom there is to you And view the excited you it's of balances is the me NPAs really and -- managements that turned a for trend see the you're NPAs improved to over reemphasizes point the the year. improvement in going forward. that see that see going Green continued has and just at performance and and corner there As

companies As excited as let the Veritex. lot turn Manny. this me momentum. to it I'm I'm the journey about And With about even more start excited of with both QX, I think over future with that

Manny Mehos

He to of sort some about is achieve in Texas. couple but of wildest coverage Thanks, know years that while This combination. than is an Houston perfect in are built scale two better fantastic thing so is predominantly we more us imagination with there has That's combination this to bank. Terry. I in was achieve for only the we're you fit Dallas balance. over [Indiscernible]. last as beyond can't our This not Number it's and one, ago. incredible talking years, continue Malcolm

to Directors a looking excited of be to growth. of to over forward will record the both and from Malcolm, with to fellow drive strong leader franchise. will products Jeff Texas which and franchise. XX This all the to be of achieve a operating Board Veritex and of value ability of of deposit we Veritex banking in part success we forma track for experience. customer We lead to in It as and capabilities also join significant building years. compliance. benefit scale, better technology, pro I'm new Malcolm are scarcity has ensure ongoing rest long-term work and has further those this want investments leverage We'll significant the the such with Terry, this team top the necessary

the value a EPS change It's in keep As will with Texas. informed, best accretion stands attractive. earned maybe dilution -- along accretion book financially the markets tangible with the XX% in Texas, probably book also manageable in value combined best XX.X% out growth. diligence The the of to great that significant synergy Those confidence fund The transaction. will years. will hand we due of capital realize and the sheet which comprehensive future with of us be X.X back include facts capital balance generation ample that strong the gives coverage, the

Malcolm Holland

Thank you, Manny.

this we these put Let's couple on deal metrics together. of of go over how and terms a couple

enquirer. So Green Bancorp Veritex will will deal. a and stock Holdings. accounting into And Veritex merge It’s legal the XXX% be

You've that's times is seen to Green, at XX right 'XX. of at the X.X X.XX for for exchange XX.X Aggregate a Green. times yesterday shares right billion EPS the $X each price for ratio 'XX VBTX and share times consideration

Green. standpoint, of and of Manny, three do at in comps the of early the will and We terms will at as president will Jeff the three. the a company. this Board Clay those Earley will executives the Veritex Chairman Credit Q be City will remain Jeff close would of we I Chief CFO. one he President, In six said, of Officer. expect nine, DFW be total combined Terry be Riebe have Tessler; remain XXXX. Greenway; and Houston will properly company, And City of From first be CEO to

in in And in are DFW the talking I just something been special Houston of think XX days. the We two this Page in really assets on idea on this XX our really markets, are the for single-mindedly this all we've nobody we envisioned. earlier. solidifies a fit Texas, else focused got what were We've and that state came the state of Texas. you XXX% was Virtually I which is special, chart and Manny is that know. this that markets have has. where right here from working And

You Slide but this the markets country. XX. only strong are medium and love Fortune but obvious, we great of the these XXX can we've household cities. companies why see they got and on growth, stuff not the all you both know best in And population our we guys It's the income, objectives have markets probably in

Our business hugely complementary. models are

you much that we models. and our stronger you when see can You are these than would together combine individually put really together that business we

compelling the think become are the some pick are we to carrier. my I best impact on financial they at The in up much and pick up some So to from going this I've we them us, the of is stronger. going from end day seen

has go some X.X you just and put this and is of create in when know always is right? and good promise And in the a some case going that overpromise paid my do to couple in the in size of 'XX. track over as both deliver. through So to And wise hope you Manny we've three let's less and we companies mentioned There years. of news record together be and 'XX get common than a metrics. merger excess accretion back so its XX% under years, -- The math that equals for so two we can you well. dilution. And appropriately do dilution is this guys

ratios strong. very remain Our capital

little is we talk And last combined that depth. look loan very been Friday the Terry to fully have real things so took a hanging on and real like not a to in X.XX% the We is hard. to say positive. a of a while. crazy number. mark looked conversations feel little phase. across that achievable, portfolio. capital hard loan very and that very, extra for it's had at of that company marks, cost million that's the we the really leverages were about This at We Veritex One a or related has $XX XX% To a

subject the approximately rate our there we'll on then -- of is costs expenses loan and million, pretax have total And $XX merger $XX mark $XX we trust. value million. a and some about at integration In are fair And me. million excuse that addition, adjustments looking

with back Terry. that it So to I'll over turn

Terry Earley

enterprise we they XX% can this would are and got about upside management had all effort. big the of with good XX.X% We both third-party Malcolm. loans management, the the choose in From due feel deep at we gives sheet looked the to the coverage in Thanks earnings risk was both looking job Veritex, lot And looking big dive. coverage there. a they've the obviously, it a versa. good Green standpoint think winning the From review diligence the companies and there. profile to doing portfolio, and portfolio due got talking From best on go and confidence still as hard us cyclical re-shut the about with us of a done company deep diligence, is look Green just very portfolio XX, as forward. at to we vice Green And and expect only so we diligence of We've I it this comprehensive of forward portfolios metrics Veritex over my have. outstanding both pretty of you On compliance very its there firms a as looking assist balance and engaged risk credit standpoint, too. credit Page as at

balance -- trip due minute our think our like done let go sheet, excited we've companies I off are are important, so here. And about and how me the feel and very both very I that's a it's mark we going diligence to

that think that I us Because the Veritex the there, balance the potentially acquirer. allows this very drag forward there. be reset and Green to is accounting sheet important go be it's without could would

about forward so I profile company such gives excited And about I'm think that what me on the confidence earnings basis. a this go

announce to quickly line the time going XX, end before here deal intent the to and are the as the we statement of regulatory Turning the forward, registration SEC as as possible, to obviously, with file that Page today certainly, be would applications QX.

real get want closed again vote the the XX, the company On And deposits, would fully power right to of about because up in. to I metrics. in XX% QX. the integrated -- be everybody conversion our to Page timeline will, results can talking or to earnings get get approval that get QX. shareholder We XX% run to soon thing deposits as loaned that thing the -- this pretty to Looking and we close to higher. it demand we're in this as systems loan it clearer what us noise if the about now out you so of financial you're helps like

honestly disappointed upside this focus as company said, Malcolm around we C&I company's X. continue if percentage to -- would be the of Run better. and the with run think there's TCE the I do don't of

think I when this sheet economic castles a a is bit the anything leveraging about are little bad you we right the practice under not a cycle. where be just that had little extra now place especially in of to balance

space cleaner XX%, better continue revenue the I a space. the go a we to bottom that that with be the its we synergies a that range best, ROA to in do, look income to expect of And in an to with and XXX% of level. XX%, to we room this -- believe We pretty lot are. organic we profile. get XX XX% can continue companies amazing and to really will efficiency goal lot the down capital NPAs a coming aspirational both manage accrue free -- north risk XX with the I the thing and the intended to of generation Fee for at like And around where us when than drive do growth results RTCE, with good so down be the have range.

I’ll back it with So that, Malcolm. turn to

Malcolm Holland

Thank you, Terry.

we've what we bit Page Premier Texas continue be opportunity this Community we level. XX about done will individually, to of franchises build are Banking Franchise. where Candidly should really Jeff, the the Manny, tune. are little they us next these have we and a proud gives what be excited can think the of So Donald, together we with Terry, of company this history humble, just super they to take but to gotten they partnered into

I confidence The combinations just -- really executions. gives come us often. this with Over and really the both years skill purchase set really, our confirm the around our two past our to between our and in that and eight both between us well our with public great And in banks went teams together. closed very We found Board we past during gives this of integrated integrations executive like match nine a great compatibility experience our would opportunities XXXX. process, say and don't staffs banks.

And we special. be the And of so combination could we something are focused, really think we these companies are excited.

up that, line open are in. happy with we would I questions, for So entertain and to the

Operator

[Operator is Instructions] Stephens. question Olney Matt And first from our from

is line now open. Your

Matt Olney

deal congrats It's off First we the deal XX% everybody EPS often to the accretion. M&A not in on that with see room.

in we've higher just because trying over cost the the been deals is seems closing, assumed So that assuming. far the last in some savings. conservative. our it than few deals seen I the guess announced savings just assuming that’s filed office you're like a on cost view. other bit first region feels Are for imply point it's all to integration? get assumed from I'm excited to cost months you It your of the savings But question somewhat branch see like what back of that there

the any us you So give of details can that? on

Terry Earley

it's Matt, Terry Earley.

with In terms have the companies I both cost is are saves, that you the incredibly of already place think the efficient. fact to start

move ratio down. said an we've I've continues As for basis to sub-XX Veritex's on efficiency quarters, consecutive run past operating

under And so promising I'm and over a believer you're the deliver.

say we've got some rents the million, $XX so overlap. cost, certainly, at contemplates its where And obvious

the You'll and costs. the you consolidate to office and would see expect. those normal then this all takes And back the extract steps things

here wrong of both around we still saves think because already come company maybe would know were back a cost I it what underlying conversation talk level we confident. very cost we've got it have just a efficient. we've saves. the about given I some been to and more normal efficiencies great companies were And -- the while combined -- had mean

ratio to have how believe, aggressive, there. I drive can the so And to in I transparent a the do million, to we -- cost And we're questions. roadmap, the I the would we I be would think, can efficiency to line But it do We saves. rather I I just have going too believe that CAGR the shoot bottom we've again, better just efficient. is believe want down you $XX and been we but and me to get with we're gotten I because think know think, what don’t stick

Matt Olney

Bank as you And equity transaction? had as investors. any talk about then with Green far a the private in those you on investors of have handful the kind Can of as past lock-ups

Terry Earley

ahead Go Manny.

Manny Mehos

them. shareholder [Indiscernible] Directors, They agreed growth on So the are the lock-ups Board if lock. prior through on they growth. be closing were we that It's have to itself. sell they've and then And is the to to shareholder of all the beyond three still course of of

will Board be in the are --- the to past. So of after the not none They close. same them the be themselves Veritex what you've going seen on

say. any be -- there a But various are won't restrictions. on long-term, with there So like no except will that restrictions I [Indiscernible]

can't this. of levels I in around interest project just various see you'll So long-term. holding

Matt Olney

Noreen. margin here. clarify want for then Okay. for that to guidance last I guess, just me, question And I the

X right? be a the from end? basis Did about the margin move I that drivers get low would end XX versus will to that can that core that of high the some range the in saying And you think of quarter. talk second point XXX the in range I towards it you're

Noreen Skelly

or margin you're just the end you I'm X, to really flat right. XX. what plus minus deposit guiding pricing. strategic And higher it. a is it Got drive to to would X

were course, -- decrease last of -- with rate the money quarter, we have rate we are the deposits, -- our increase We of in money increase. our going market a signaling driver Fed on is to primary our rate market the that We're as to long loan what at is can, look hold as to but growth. we the September to off drive going ahead

we hold a that if we can and do some so market of So that are that going sensitive credit that price get sense? increasing and off pushing money higher. the can reports make on to and NIM over keep and those growth the Does quality accounts, loan expansion the account, more we

Operator

Our next Gailey question is from KBW. Brad from

line Your now open. is

Brady Gailey

synergies fee the Brady. huge is bit mentioned with about some overlaid question about it's on each Hey, opportunities I mean I income Green products side, But fee other? how but so maybe Matt. on getting side the little thing can that this income you what has a I Veritex, and EPS on some accretion SBA under know, congrats the think, XX% fee is be Bank agree talk announced. a I first might there just Terry number, legacy be overlay the can the on my

Terry Earley

Terry. is Yes, this Brady,

great of and Veritex source to the it's for be synergies, hard partnering to been good. such I revenue with a fee and continuing treasury will they Green continue think, think out. build I management That’s that income

And done we Green are FDA. honestly together the a than Secondly you quarter QX And it but QX, even year. the one was Both we've better better to expecting think the can honestly which even half is business. very do better. companies in separately. had have I quite be back mean, I than but was of I’m on QX, better bullish I in --

good is off a I Veritex, companies I business. opportunity customer but opportunities. We point And I fell there's interest there. swap the there think the rate last joining So two SBA good our QX, to think for are with little would had QX a in one,

that think build as of all beginning our new if we've that QX, that at will. in model we mentioned line put loan in I capabilities the into of pricing you

looking the structure banker see that, So price who and any working while looking is interest looks everything how who it at doing fee income is the -- going rate exactly any at and deal. they swap to can customer are

So that. I’m about excited

and business. -- their that’s mortgage think like I I

is I that footprint think synergies. leveraging another also their point across revenue of

can as So growth. again, on pretty revenue I’m a we bullish together drive this some place where

Unidentified Company Representative

that we the put and any have some could leverage have swap And the really then side really business Brady, they got don't revenue need Yes, this as that they off of. fee income the at flip platforms whatsoever. we The have we thing mortgage rate we interest that treasury fee fees management on synergies together I in that look whole didn’t here. modeling

a again, but we we we are any haven’t -- are much that’s modeled it, I see do So apart. of as than together that better

Brady Gailey

you. And $X mean, you you assets. a in for Veritex billion at Malcolm, look now I to are going then question and be

impact asked Are even remaining about going to be and even $XX crossing billion XX now organic on you are preliminary thoughts just to don't But if $XX Durbin substantially are cross $XX of you of that might years. you billion? you estimate what with the but crossing billion the profile maybe especially couple not maybe the growth be guys of in XX be and your the company, open committed I -- you at plus a looked if the So mark about it about sort yet? would any

Malcolm Holland

for prepared on I that didn't so combination for this this one integration. I've and I So been questions. because of focused a prepare lot

lot a the is right so focus the and And room are integration, think on our the is there. But to people seat. we there And getting going to I it. short-answer here be of right between open absolutely is that efficiencies,

whole going to down need it's folks as thoughts think it be to I to on discuss we closing. next we're will of level start but this sitting that table, candidly, Brady, right past that here team. two. have getting our we a or the spend haven't that but a know given we management going sometime radars absolutely around once something to to I get But getting bunch But

Operator

Thank you.

next from Tenner D.A. question Our from Davidson. is Gary

line Your is open. now

Gary Tenner

to has to single exited that Austin, it Green you relates obviously, guys want like would you branch with invest maybe that market it in the As reasonable remains assume a in a already market looks a not further? merger, to that that not

Malcolm Holland

Yes. something really we at level. have Obviously that's that just looked high

haven't you haven't We made Dallas, we've And We although And Green at time. here at branches like do provide overlap really other of certainly here. But looked in this ask for just branch a of have couple a done it's to in point outlier them reasonable decisions deposits. specifically. at some is kind any nice couple specific this some that those the just one there of question. We on some analysis Austin.

Austin And X is so of on need list just one which or we've to X them. a the of got do X or that we analysis or so

Gary Tenner

at at the see update slide energy in been didn’t at our the portfolio in Could running as know Green. I of that's you been then it's exposure but And remaining where terms just least was? Terry Veritex. deck, that portfolio I

Terry Earley

both together. we've a The sovereign. talked combined a squeeze running to been efforts bit little I going portfolios. space I'm -- don’t think, off don’t but on million the haven't that to in haven't than but We thought through less $XX $XXX but combined the either got we've That's continue have are, to about it, goal. million -- same bank. we sure we out have And that pretty business we we're continue down and together of -- Yes, about side. of it, not that we the Remember have move portfolios got

of it's So a part loan portfolio billion the pretty $X.X forward. small now going become

Gary Tenner

just And earnings then for just question one Great. Noreen.

You was $XXX,XXX $XXX,XXX the an than had quarter XX.X higher to expenses based quarter that upper this core outlook number? off for provided about

Noreen Skelly

Yes, that's correct.

Operator

Brad Milsaps from Sandler is Our O'Neill. next question from

Your line open. is now

Brad Milsaps

EPS the parts But Lot but people that one can could out of you results moving that that also guys standalone plus really you consensus a based estimates I do XX% your what comfortable on comfortable? the of of out accretion. understand there? with basis companies are And is that then quarter this timing two, just on curiosity that both kind quarters, fairly on does mean assuming based are are standalone for

Terry Earley

Yes, Brad, this based estimates. consensus is is on Terry. Yes, this

their QX terms In both modeling into the pretty momentum and are and about very companies to I earnings think QX close. leading going of strongly profile feel the and --

give guidance, didn’t say I companies view it in materially before, would anything. of change me at any for opportunities My what I I So is from but let least, both materially, EPS -- would our where said we a for If a -- step Green. we QX. the with we if out just It you hadn’t can changed there first strong were from quarter ago. we quarter anything will just we laid march improving in get terms

Brad Milsaps

run loan point? where as kind or closer all And this deposit of -- you you expect at you have get guys the in just or any might book you Or we areas at touched to either other expect assumed on off this a any little bit, would pre-closing? but the

Terry Earley

I we've be could at for and a pipeline one do No, this slow actually very growth know little we haven’t assumed greatest Greens loan assumed quarters a run off. in companies. Veritex that very, mean both our bit rates is of that terms conservative and I of understand production. of continued

you really side. on solid on So both growth some I momentum think the sides got really,

Brad Milsaps

kind looking your of past? is or you bit of based watching we what see in be through Malcolm Maybe you final part negatively little a And obviously more to and the what guys of Terry, one of can with should -- working got a this how bank have what progress terms need you MOEs. experienced kind general for positively talk on maybe some about an in background both you've a just question. MOE.

Malcolm Holland

I carried Yes, did both recently banks, XX different Chief He integrating whole them. of have of them We've that a so, an did of have backgrounds terms I a buying North in Officer Carolina. we banks. down MOE acquisitions. great a some done Technology mean, couple -- bunch

part team. he is our integration of so And

Albeit this. that one's around We've we've bit this So same. the little table some process folks bigger got the have but the done some experiences. is a

when last that and Terry exact same process His think so about sat our one sovereign. let's we I went down use the when we through week, process. And was

So thinking were about same I think we it way. at

Terry goal we companies. Our these great think exactly momentum make sure out have it going focus continue that we businesses. is of we efficiencies are on then to efficient right. Not lose and can These forward. get operate the what is

quarters quarters And wise, companies. of do the these we if whole don’t so the to of I together, But amount look time could have credit you're two I I going you companies huge forward, a put a said, not And growth savings. better going think costs how bunch watching read of on be this the efficient wise. each momentum like gain I’d

Unidentified Company Representative

I let think great chime a question. me I in it’s would -- Brad,

MOEs after are the execution is key think financial line key a announcement. wonderful But in the couple the construct. of And to think things. that I the I

a First, vision. that and And I to the have do. pretty CEOs common it’s Malcolm on have that believe here Manny clear

the And saves to vision they to things and their can do. these standpoint, culture credit that especially a and employee I'm [Indiscernible] you And keeping this. customers. if bankers really will obviously on be to and going last market going we're there. your customer to be and I because well, cost in about the have can in integration then culture think thinking see credit work Well, important both we business And lot side, and through if you customers. key of execute that's be we the common get But delivery, a same we the part really the between that and you're go got common thing delivery I upsides on happy way do be similar I and obviously similarly. the bankers, Second on think think mean, and the and focus to customers have to excited key the and promotion. that. retarded is cultures keeping communities, got a you the I as credit delivery see those is as employees, model And to speaking shareholders, Green the And similar key the think a I to that from about the with what very play

Operator

from is SunTrust. Michael Our next from Young question

open. Your line is now

Michael Young

what wanted I kind key certain growth that keep over of or the have capacities for two forward. about fairly growth loan in a plans you additional have of feel is for just for might and existing levels you level like excess lenders you onboard? within companies Do the are been then what ask geographies you the -- that's product tenant And hiring kind forward. expense to to years flat already combined of once kind know staffing of going to just I makeup certain you capacity extend types? Green the

Unidentified Company Representative

thinking focus our Yes, Houston. -- can in But of to of Michael, DFW share I to grabbed so I market think where terms I know geographies. Those there is and we for and in Veritex our are going intend and be time. is what there. a focused be Green There think I to speak we lot are that's geographies,

combination institution, attracting to the And hiring the our be going with up. our of And we goes to at level same time, people. that some the good going for are we clients of go sophistication is goes looking will up. in always billion an are be type I $X that building think, up, We lenders

so to markets. compete some in new going And we're

important. so do C&I the scaled of there that layer borrowers I is want We I believe I always in I And in space community believe growth side out this it. sophisticated both scalable. in it's space. CRE eight a and to And top your also this the we little more the sophisticated terms But banks because keep think bit think players that's

think I great is So upside. there

we that also we're I some hire hire And question, that's more where companies think things into going opportunities have But bounce. we've able going no efficient. and become the it's current to synergy I do been do. be never for of been none those put Our revenues can think, numbers, with able to to is folks a we've stats, capacity, more have been never to that to

Michael Young

talent that then in you the flipside portfolio guys markets kind the lending this on early you make to is the there you end talk of side any the any and well? guys maybe so are to front the efforts And protect the of of equation lot competition the made in organization both planning of for talent that integration the are stages as a also deposit predominantly. you that about just of have of deposits two but just Can

Terry Earley

a it's to make MOEs. to at that. we take got get we as here both And Mike, lender and can hang good shot I certainly we that together. a the a But you in I then people. this goals I'll of if and know I Yes, deposit good plan, done to certainly there talking growth. about a world, people better Terry. more probably mean, And the you was And us to make Green point abundance we or is -- not And incentive is there. deposit side. make were probably from kind cost weighs on XX% be the onto but that's to think a think is is that. companies there do outcome Malcolm hang add-on I don't -- your will have on we through of Obviously onetime job, money in certainly

Veritex very side. a think scorecard balanced got their has drive to I

but competitive, I it -- think good So driven day. it deposit its I competitive results, more and gets don’t is every

heard say out this at hand walking probably a the to you of So you've hand where I got me deal. combat as there

not date. this a not fee service being is single our Is relationship service single and a focus think at and I especially household really twofold.

think I financials. a chase out that let lot and relationships. store is I we're this keeping keeping But think have passion the customers fortunately, we're us. us to balance for side we lot And forward And in unreasonable have. the are drive, hold in I think we we've will there without fun You is the touching get the so on And it. since the CD day. going that. just mentality, sheet people price to to that's our that that’s every about of the talk that’s us to relationship -- pretty to both on it of the reasonably think, exciting touching mindset I will going have just us going we do rate, have important for as have to not it. mean to to with got And can the the people that’s reality have I are guys. we If assets that. have protect that’s and got branches and we to single service, especially see math And what as of for somebody while walks we you customers got got the who them, is what talking I to and

to that done excited what I’m to us do going going and are and you they so see have need relationships. be as to we aggressive as continue And they to to are what for to be protect

Unidentified Company Representative

to little a just Michael, on Yes, just bit. add

Our side. have for the incentive top plan is It's been is definitely a mind. towards conversation deposit a year. weighted we having good internally This on

dam market, the I both sure protect in what the of think leader We on pull we ours. to ever to we we don't lot be is have going but levers a are deposits. to want different

the go math. when echo Terry's all to the will sentiment And we've got a relationship, so I way that we

that me it top will aggressive our the cultures it secret And that's we've down plans. of this sauce some road we as similar so know that let and think got are very mind in because we you, are it, respect. on tell growth the But again are just be I we in at move deal, part of we looking

So we to fund it. got

Operator

Brett [Operator Instructions] Piper is from from Rabatin Jaffray. question next Our

now line Your is open.

Brett Rabatin

opportunity wanted the Malcolm I accretion of and to of a the I thorough may sort the have ask, anticipated But probably framework getting groups grow doing guys about of the anticipated of answer. to sort think, level talking had you to or versus have this to transaction here decision the combine regional's. of framing of larger the you question may the both or both question of

And came I little to And was this that's potential versus about. around so color more a other hoping how get the the alternatives? of just decision

Unidentified Company Representative

just the with as been know, I trying markets. for I've two silver and the couple build talked history the actively on started other a a and so step But the while, and finished as, to of both known history obviously, this when the Houston wish, of in bit for toward same while, Yes, deals, call all about little we back after and trying deals taking medalist you they've the lost a the we was are last franchise the to unsuccessful them. Green I've and we known us little a

one just finished there Houston. had we we talk it Manny started then I exactly And just our and we why evening started and Although was the more sense. conversation they pricing And down the -- in regions a same more And second. makes other are talking. we, the Jeff

we can to was and to So this let's May to decided give go listen, each the this eye in look effort in level. early and we its at say next see other if full the

on a were announce were huge very so has become later, of amount that's here. first positive just the very, don’t alone think days active did. And I And we deals, quarter. been either it behold we there XX ever able we work. ones has of what a until to And kind radar marriage

happened. history the And how of basic it so that's

Brett Rabatin

also about thinking I Okay. side, Manny, just about MOE. And then about up the an talk or maybe regional you you from a have the of think, on versus coming potentially larger that curious framework Green some different kind Can a lending talked other if merging you two you've little progress was of two the cultures I get player? framework to year? could, of as around two those And then teams groups just better next got

Unidentified Company Representative

mean, mean And and I anyone are take were share, regional's for record couple multiples. last pay preposition part for for is that's to stocks our second broken business, Well, Texas the that there I'll the have of balanced. we've more needed. the I a the half. ability market the at that let mean Malcolm part of the the I've shareholders. trading are growth with regional's. of This I MOEs value exchange not, done mentioned years. Texas not take first best and I in

partly slipping I So make track Texas. acquisition up don’t a necessary We think as a around to see in with speaking. them

metrics. of acquisitions. below part peers I'm of Europe coin, in the We want acquisitions the stock here. is on because price very as really assuming of our side the trading not other And other small total that during So were competitive such of

the So we that jointly predominantly of want forces someone is the us. still as an kind better; you at they and doesn’t like day They the everyone's this Very for if has And -- can coverage. bank give what phone. the don't joint build innovate. economics This way -- market. acquiring, create sort call like the We've We candidates if I hurt deposits. even to modern got time can XX. they end Then Dallas the the most the came in got best of by it the where can the XX run want ever best we've first changed with to over to have out. market saves legislation down. They cost regional and we efficient, better between of and

we fact, full all add way we to we Malcolm probably this, couldn’t and of If combined, years couldn’t bounce think sort that balances and said, [indiscernible] came think sense, greater we -- I talk more organization diversified you So autonomy up imagined sharp that thing a as this. better saw So are for the source. I better ago may was to we saw Dallas markets Dallas much I us have either, together of -- same I they're have and more think also -- asked, saw sharpening two that happening. deal than relating, that part have but, now it coming when it in not And both not down a all couldn’t [indiscernible] this for to I of closer

balanced, banks we most if community at all the you narrowing when that’s varying. -- the it look made some were that look Texas value check I NIM think bounce, So in at scarcity most where the something which chart you have boxes

my here, things you two these but you, that is been So who I not -- we've exactly I have for can't son mature years. not get will leasing mean -- tell now I what

Unidentified Company Representative

quickly just And on culture piece. the

As side. very, said, are similar on we Terry lending the very

and or the appeared they're one Jeff out better are already culture began week. And Chiseler I I all of Jeff you never forth to both. culture a of will than because other, going what the There come be lot their important, like and you meeting a is in There four get back and think Jeff had both But meetings both, get of communications. going similar or a today. so Greenway, think vitally to Greenway them and it's positive. I going this they've combined -- is even but have get yes, And --you to individually. three culture mix is lot think combined of very are you the each us is

Operator

Matt Olney from is from question next Our Stephens.

is line Your open. now

Matt Olney

Just early like move look a want quite to on in shareholders too Perhaps, follow-up a chunk Looks and to kind transaction. and get big could capital but profitability But the your you are deploying bit on point? bit quite the XX% that up common it's starting returning it’s are your some the of updated a so when in thoughts of I what of thoughts range, at on XX, little looks capital capital. a Slide generating it full capital. like dividend about bit ROTCE integration

Unidentified Company Representative

I mean little been a that bit we certainly had up. a that’s conversation

just how can announced dividend, do we they a talking correctly their quarterly and dividend. pull off Green have will assessed it can the you think But we about off. forward. As has And we quickly you be we know we going that pull efficiencies,

time. don't have need capital. of the amount fair capital around a extra to generate to going are We And all hanging we

a that’s we pretty going be have So to quick. conversation

Operator

showing Holland, for and time, remarks. further Veritex CEO of Bank, this I’d At over Malcolm you. closing questions. Chairman to call no back to like Thank turn I’m the

Malcolm Holland

everybody. both our a Well, companies. transformative certainly for day It's of thanks

can we I And We us to be today email. our if all think further conversations, excitement give will together quick any here. available anybody tell you a have be wants today.

time. everybody's fit in. We to it will try Thanks for

Operator

and gentlemen, today's conference. your This Ladies program. thank concludes participation the in you for

You disconnect. may now

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