VBTX - Earnings call transcript Q4 2019

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Operator

Good day, and welcome to the Veritex Holdings Fourth Quarter 2019 Earnings Conference Call and Webcast. [Operator Instructions]. 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 of the Board of Veritex Holdings.

Susan Caudle

you. Thank

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

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

will our operating the basis, X-K be on some measures addition, Please the discussed In a non-GAAP management underlying our core better in discussed which reflects performance the of of all see business. filed of the reconciliation metrics release. believes non-GAAP earnings financial

today our me Credit Malcolm Holland, and Malcolm? Riebe, our CEO; Financial Chief Chairman Officer; are Terry Officer. Chief our Clay Joining Earley, and

Charles Holland

morning, Thank Good everyone. Susan. you,

full first of The in Veritex the the books. is year new

and have into a moving real XXXX. We positive accomplished momentum some feel deal great

XX/XX/XX, or ending operating quarter the share. $XX.X million delivered For of $X.XX income we per

some merger warehouse like XX/XX/XX, in just For we loan year versus $X.XX back forecasted paydowns of pulled The funding for ending was and the the nonmortgage for year our quarter saw found the was Houston. earnings, $X.XX bit at July in finally best ending and of stability a fourth We the XXXX. to increase XX/XX/XX. growth our quarter EPS year. the operating payoffs, per green the annual share A announcement XX%

net majority continues to market growth. DFW the of Our our produce loan

the increased loans benefit interest income receive QX. full the in For didn't X% annualized, so during funded we December, majority quarter,

Our remain steady growing. and pipelines

approaching the deck upward I disruption at mid stated that quarterly continue a that underestimated You that in loan loan we previously for commitments would should on production of merger growth can our have commitments pace. We're new nice see produce XXXX. our the levels now that loan later a to progress single-digit side.

The grew remarkable. growth while DDA side accounts XX%. interest-bearing annualized, the on transaction growth exceeded deposit was XX%

seen for this years. growth found these in can have in few accounts not for of The type growth this We a areas. reasons be

able we and in margin our but provide interest a although I'm Terry corresponding and First, additional softened, marketplace have book. reprice it keep shortly. of bit, in gathering reduction challenges behaviors is third, this we deposit competitive our rates; the appear getting does our by behind up, won't the importance currently to programs. encouraged pretty behind noise continued Net somewhat sure details deposit we that merger the to are the both clients the to seems the managers pushing relationship fueled us, and a of deposits slowing our of will combination feel second, incentive continue our momentum the pursuit be have challenging us; the as deposit be area. this from Fed by of to the I'm pace for house, down still settling top

book. Green book or during X.XX% our marks the nonaccrual on real NPAs Other $XX.X balance. This From million from Green quarter. is XX% with on million in analysis relationship to main An outlier, a reduced legacy currently childcare added impairment to relationship specific continue This original a during both in was had feel one just and quarter. an there with exception, industry debt of strong credit the no excellent performed total loan driver PCI impairment the confidence to we than increasing the that the quarter perspective, and with we X the loan loans, principal we was X.X%. have property was $XX to facilities, our

For the of to million $XXX year, current level $XXX the been million. from the reduced has book

to Terry. the call turn now I'll over

Terry Earley

morning, Thank year fourth details and good results I'd to Veritex' you, XXXX. minutes for to Malcolm, you on full provide quarter and like financial the few everybody. the take with more a

As quarters, and in have almost in the has noise the although of of out we last results. numbers, do declined couple some noise the substantially the is operating

will and items. which part, please So the fourth most excludes operating sales, basis, a loss that quarter expenses financial Veritex' for on note non-GAAP other commentary my tax-related focus on results security on merger

preprovision tangible assets in fourth to common pretax Malcolm's mentioned return consecutive on on focuses which to average fully operating equity above which and per on on the X, our XX.XX%. Slide already addition, But X.XX%, X%, our average improved quarter was results. Now QX earnings share. our return operating operating diluted the represents

On profile financial earnings this note page the Malcolm table bottom highlighting been X, created Veritex the XXXX which by without of to the remarks, results. through a the in of strong the metrics page, half that at versus few operating Green. want but merger I shows Slide don't pass the has between mentioned XXXX and his

X. to Skipping Slide

book the is right-hand equal the book to value as quarter. is of value immediately fourth Focusing $XX.XX merger. per the the This graph, tangible share the before on bottom Green end of

the from from in from Green share was originally approximately dilution absorbed During that modeled. addition results, merger the XXXX, dividends. tangible value disclosed perspective, dilution earnback tangible From occurring also to the dilution and is meaningfully Bank book $X.XX than in buybacks in QX book of the we've our per the the stock faster $X.XX value merger

net which of the NIM Slide the points GAAP declined shows slide X.XX%. XX the On The that table net accounting basis impact both the the bottom impacted right items margin, adjusted basis margin the purchase decreased of The to GAAP points NIM. in in X.XX% interest X. excludes to adjusted while the X QX, interest and

purchase net which of margin, on interest the the excludes adjusted Focusing impact accounting.

help by short-term XX rate floating to yield those rate margin that in interest basis XX% will rates is points loans and lower on NIM offset advances. This Loan on XX a was expansion interest continued portfolio Home loans X Bank deposits and rates impacted embedded adjusted The from on basis continue by coupled rates, with short-term the downward reduced purchased points. basis interest a paid our Following net lower the floating expansion and loan partially interest-bearing floors potential Federal from pressure the rates. offset our on point another

Bank As of in we come have use we aggressive continue to More discussed be on Federal funding rate will on including and the Home deposit for funding portfolio on several to a side, quarters, the the the minute. Loan slide funding. structured reductions

X interest margin. completed in decline debt. point net subordinated million As $XX the of we This the quarter, during announced in issuance Veritex cost the a funding basis

to XXX sheet rates. as reducing strong growth It's Page can carried made end rates of intent release, and in a rate from QX to netting quarter of almost neutral management's to rates it balance as We've position quarter income point falling on of the loan good basis of interest earnings as excess continue to rising the liquidity to debt X is impact deposit the liquidity transition progress decrease seen in This Finally, during the the result to by we falling be more considerable issuance, growth. as risk XX%. on late rates was we the opposed quarter. a the greater believe excess interest declined largely risk the a deployed

for from except million $X.X X, account quarter $X.X weaker million, into in in operating of the start and business income results XXXX were down fee all of in have quarter fees. Deposit our disappointing for after after On a QX Veritex reported the The Also, fees Slide XX% strong since deposit QX. income QX. great had rate very weaker categories for X% a grown QX. SBA It customer a interest was business another QX. swap fee

the of costs. and majority to a by increases of due scale to from the operate business efficiently, Within variable this million, On stock-based company the the Overall, branch-light compensation. merger benefits expenses category, primarily compensation Slide the $X.X personnel were realizing XX, in continues model. and vast up Green

to target to If for in I we expected quarters We $XX for in mentioned. reasons QX range. were been million the the slightly several that you will recall, run our above we've expenses signaling $XX just million

on and left, remain is improving loan should embedded progress. would prefer Clearly, portfolio the we down $X.XX XX, QX making class. continued top-right approximately rates quadrant to excluding The detail increase but production annualized growth to shown portfolio DFW an declined $XX strong, billion short-term of lower. on Slide XXXX. portfolio, continue of in portfolio year. very has the duration profile the table of diversification the see goal pleased On now asset on floors Please for of and linked-quarter The down on the our $X.X like additional the if in as the provide and Loan page. We shown of bottom loan XXXX. relief loan is basis, with a with the best bottom warehouse. the working some The be We're is residential continues XXXX. the X.X% this portfolio, part of right. significant reductions with to rate this head the Houston mix loans mortgages a the progress increased to million allocation total again, because levels the to continues improve or during acquired mortgage into billion

deposit XX% quarter significantly inside warehouse The quarter excluding has $XXX it the mortgage improved we've dropping The deposit mentioned, annualized. the XXXX, linked Malcolm was XX% the front. the mix from deposits, Page XX, at Growth, ratio, over As with XX.X%, deposits the stood on range was on amazing portfolio XX%. time time on targeted. reliance an loan-to-deposit to and or of I'm excluding million growth

higher out As deposits that declined and XX money and left time accounting, basis basis, rates purchase Fed on bottom we've QX. market a the we've into in shows quarterly reducing market discussed on the cost, the shifting QX since to The graph of deposit page index been points rates, pivoted earnings rates in May, of by deposit call and on from every interest the excluding structured aggressively borrowings.

to QX reduction Federal basis from we on Home we top cost Federal the was points. Loan lower XX Bank achieved of of in QX by bps. to XX Borrowings to able the Loan Bank of side This the Turning it, rate of Home were QX

the Fed Reserve moved total So only Federal of the Reserve points in XXX half basis XXXX -- back when basis was XX the points.

now deposits stand of deposits. noninterest-bearing at total Finally, XX.X%

necessary to like of Veritex quarterly transition this already portfolio originated relates provision million After renewal adjustment. be process. the into CECL provision to would the the of comments. migration point Malcolm's credit normal the his loan X, this no longer the implementation out will into CECL because on XX. the January will through Slide to the incorporated portfolio to be addition I loss of QX $X.X Moving the approximately that in acquired discussed

at on remain bank Capital the XX. very the Finally, strong. Slide in company ratios holding

XX.XX%, to announced buyback slightly Our tangible tangible only common increase with its our in to equity all Back in of million. actions. $XXX Veritex even December, decreased assets capital stock to

repurchase $XX.X X.X quarter, the million returned During returned common the year-to-date the of the shareholders, company. over $X.X million buyback 'XX the we and -- shareholders $XX.X or of million including of we million shares in stock and to shares of outstanding in initiated dividends. X,XXX,XXX On we X% dividend, basis, outstanding million of to shares through $XXX a from which shares

Looking active we investment forward, organic to repurchases can with earnings we excess generation and under the be because our remain excess have strong capital make profile we considering our with we capital. this million share approved our the best from capital, buyback, remaining to the $XX.X believe our expect

regular the in to February. saw will its by paid in quarterly be As press per release, which $X.XX dividend Veritex increased share, you XX%

the during Lastly, shares exited that XX their shareholder the position. understanding our at table. September from to QX, private We're it's have equity our overhang equity has finally glad ownership private the off million last that X.X held

to I'd like With that, over back the Malcolm. call to turn

Charles Holland

Thank you, Terry.

over can As ago. to continue deliver on communicated metrics X.X we our execute you to we plan the years see,

some on My operating included metrics Return and preprovision improvement. an of team in still earnings, we efficiency I room pretax return have ratio increase of of efficiency XX% of year-over-year XX%. on X.XX% operating operating and -- average assets for TCE X.XX%. Our think return and XX%

Houston. on X of the seasoned available X/XX/XX, hire hiring disruption marketplace the discussions lenders The and lenders new our may model. our We merger business by that and all recent be another several high to both in couple of very continue front. potential leaders ongoing managers, quarters. in in to hired with a hiring level and we have triggered opportunities increase announced DFW active expect Since of I stirring be quite for areas over next has have bankers

we're radar something Concerning actively pursuing. that M&A, lower to communicate it not it'd be that is on fair the and

present may that However, opportunities any our business. would themselves remain open add to that we to value

XXXX and on most growing to year loans like objectives deposits efficient Our XXXX, deploying in focus off for team credit, start. we're looking good top quality way and continues possible. and Veritex, to maintaining capital our already solid the for a is a

time, at the open line for this any questions. Operator, can we

Operator

[Operator Instructions].

Our with from Brad Piper Milsaps first Sandler. question comes

Bradley Milsaps

and expenses $XX thought to Terry, with maybe SBA, $XX about maybe the fee talking have have million were of you run in go start that clear have sort come quarter with related there. still expenses. that that would franchise would you noted were been weaker, I you out and million more swaps, that that revenues to I hear in of but the kind investing guys but rate, the they in

still side, million is in little have both a that you line run those quarter? for $XX maybe revenue kind thought Just into see your than a you rate particularly would to expense if on even XXXX, good million move items a of kind curious $XX the you that were of step-up some this of as weaker on outlook

Terry Earley

the them people a DFW on and we've think need market our to got available, opportunity that look, to a the We've And I people best on support -- if unbelievable long growth. to just short-term in we've not to got we in and in to team. put hitting to And bring the tremendous can. investing short us bank with okay better Brad, both our There's got goal the overspend run, to little in in are where good there's if Houston. the now really need disruption better means targets we invest, And that we court, in run in term. bank long to bit is a gives create continue a for we're create not we that we're a right the that. I'm onto but position focused I'm -- market

that the $XX see us XXXX. really So $XX is running million level Look, monologue. much probably to to at for don't I million low. in

recruiting $XX say of are million we $XX more half the the in as front. a right think be would growth successful is more first get Where half in a how of to -- we we're if -- back the to in to going million we to function need people, invest lot on now, $XX million $XX out And this, year, look but the going million I at expect I fees. to probably I is reasonable. of

Bradley Milsaps

maybe Fair the on enough. then just maybe NIM relates it as specifically And to accretion.

$X.X the on think that this book I loan quarter, there came about million was through.

able you'll built -- CECL see framework, provisioning? of that mean some you what maybe kind in the be tailing of As some needed your you obviously, you that remarks to have this that won't kind of And quarter -- number Just mentioned would opening under XXXX? that under kind of that CECL, curious, off how that for to be discount. recapture of in

Terry Earley

XXXX accretion part isn't XXXX for excited some And getting accretion, well big accretion through really NIM, accretion is of versus headwinds. to I'm earnings because XXXX our the going that going to to create us on XXXX. when set a up accretion XXXX get Well, our -- is

CECL So affecting of to the its less own it's to come going the down. in -- come mark don't acquired impact down on The going going And deposit have with it's the to we is of side, a to I it. through almost continue the come portfolio down. through. see continue loan book. We're on side still to almost it's because on

this year. down book took I As said, $X.XX that we billion

it accretion So accreting on we're earn later loans there's and less to down. into

it earnings. going the overall come to quality I it it's our want because down So of improves down. come to

in -- was I've question another it too. it accretion? about NIM already it. was Was forgotten about There and there,

Bradley Milsaps

Sure. Yes.

NIM Just any would outlook great. for the be

Terry Earley

Yes. really I NIM going and on to mean, around look, adjusted do focused bounce is I'm I it's what accretion the believe -- going to look, because do.

what which and hundreds what pretty the on stays going in that of of to got reprice the we're think think because is and Fed. I going flat, of are hundreds we've half be and but adjustment we've repricing, of I NIM, not millions we're expect, meaningfully the stable Fed if from the I year, expect the through to adjusted of I the most first got market expects, the loan it, CDs the dollars lower, November

long NIM. looking do pretty as for from can here a for steady stable But So some we Fed as a us I'm things and the think pretty looking I I'm liquidity the a affected stays little NIM on hold. certainly bit, shift around. overall,

Operator

next Our Gailey with Brady question KBW. from comes

Brady Gailey

a Green care child Legacy the So that loan. was facility

have or may this And a idea already of mark So that do when for already set you any asset? no be impairment NPA you taken Did quarter. that kind aside resolved?

Charles Holland

has Riebe, on Credit Yes. that Chief our Clay one. details Officer

Michael Riebe

Yes. Thanks, Brady. Yes.

because until So delinquency we did mark third a any of not not mid signs credit quarter. show late asset, primarily did on that have issues it or to

tenant Where So is of borrower. with late continue the there bank view QX-type resolve we work that borrower with operator to a in anticipate this this associated to on is, find a to properties. being to for to be on bankruptcy when with a The And of is the outcome stand possibly issue with to we're that. is right is best for resolution. there, that going working tenant And no the working we're the borrower we credit. Relative the QX, really now that for the as an this replacement those of today impact the the property, mark bankruptcy with both the we that.

Brady Gailey

that there $XXX in had were was What helpful. legacy All referring that material, about been bucket? it was think to I talking reduced were you in portfolio then -- the million. That's to math down y'all And Green right. a it

Michael Riebe

That was the Yes. PCI bucket.

at at close. about that million had initially bucket $XXX we So

year that continue just of last and the so goals to is bucket And one up. shrink

of made great so And moving problem of out. million we progress over $XX some those worth some credits

-- it's So bucket. that's PCI the the

Brady Gailey

And X% XXXX, right. all All you I you to say continue in me, which to but stock then be will cheaper. on active like repurchased it a for finally big sounds buyback. it. little the a company Got the the going of are was was all number,

average, I $XX. a you repurchased under stock little think, on

Now $XX.XX. the roughly stock is at

enter it not buyback not does But XXXX? cheap as how share as it's impact per as the be. to as your cheap, it's -- So we still used price decisions

Michael Riebe

still be for think to of buyback's I going important the an us. XXXX part

You've a metrics more mean run of But expensive. we lot sense it it's little buyback. there's levels. exactly our I it gouged still these a on bit makes at right. different that think We

We have we it's real And the something back valuation cheaper buy at. our look this on some need forward-thinking -- can is. that, of around if then we to table company that's what it than

the completely We've to for buyback the obviously is we're and we recently. to the out, So been doesn't continue scare that blacked much done in evaluate. XXXX. still active be answer we'll so haven't us, But price going

Terry Earley

every sub-XX back, earnback the year. higher Yes, extend price, X% said -- But the one see $X it's look, but be on it really -- goes, Brady, bought Terry. the on less a movement, you even aggressive price we the well, Look, be. only for about still willing share you we're TBV aggressive more the buyback us will to metrics the

generating with is we think high We've single-digit underpin than We've even so more still going And we capital And need build. dividend, much we're growth, great increased it's I mid- that growth. to mean, capital got much the loan too a so that to investment. to capital.

important And not But it's a do there. to now, to buyer at to a which capital. it's levels, anything. a way think continue pretty be deploy unreasonable there's will right look, we at so we not And level current

won't it there, it'll Now a where be there where price not is we is go but now. it's where place

Operator

comes question Olney Our Matt with next Stephens. from

Matthew Olney

I want to that reinvestment the to opportunities back go you see.

it? like is Houston? Are mentioned what Malcolm, I where these Are I'm sounds of here. seasoned you on opportunities now in looking opportunity more September producers you've you see color Any you're since right three you've new Are as curious think, the Dallas? hired for? And XX. got they more commercial they lenders? from in kind it

Charles Holland

and markets, lender disruption I side. gone yes our big The can't Yes, mergers the two in more of yes. on the that's communicate

need Now, the upgrading are at folks listen, in. it's are parts of that some in different that available not bank just different becoming we areas of a other couple some help lenders. in, These

everybody we're I'm people have I company, that I'm upgrade experience. so running our movie can to And just try that to seen -- talking the that here to with

But which, the And other but so company market just it's some revenue happening as folks than the helpful. Houston, the other that in DFW Houston, that. not probably more there's could It's in generators, quite still be lion's of in areas there's disruption well. share

and at these next public $X So is XX. you've billion, right -- to and in The between. $X lower at Veritex billion the X, got up bank one

we folks. we're So we for don't can't I be, -- be at tell they're of option hire table folks many know you opportunity. viable a We want of going to the those to we're to need. some but there's And just a lot that those how

how we going enhance our we're to be will time. smart about so do big company But I think it it. And

Matthew Olney

And to question Okay, on outlook great. Brad's back for that's the going then fees.

quarter. think noted in were bit a little these fourth the I you softer

we So is fourth this level into is XXXX? rate a as $X.X run this early in quarter, move good the million

Terry Earley

I don't get SBA. how -- -- much certainly necessarily I've not. hope from know we'll that we'll I Well, get more

think think think it fourth to a we did up I do we encouraged in had more than quarter do of we and have side. already in probably we're I XX think make the don't. 'XX, the I We've on can most But But -- interest the first rate quarter. of we've days swap a can QX I is going I where like better. we're already done January

what mean wonderful million got better better. take to don't I swaps. do to I'm SBA either. the it's is We've did saying think going opportunity there's on annuity. or more really in that or this. X and And look, are -- we there interest I rate the side can than we side. think -- do $X But a million is But to beat $XX interest much but saying, swap on are the And do fees probably gain levers than rate sale XXXX the -- I'm SBA So to of just real deposit

Charles Holland

And and can there plain the the on and underperformed will. do simple. fact is, just SBA better we We we side,

Terry Earley

we didn't And do USDA. any

Charles Holland

no business. USDA Right, had we

Matthew Olney

built guess, outlook I in then, be reason? core is of it understand you quarter. on I Was helpful. any impact? the kind It the of any are relatively Terry margin, the to And kind Just Okay. seasonal trying Fed for some this Or like from to looks if holds is here. liquidity you the color fourth liquidity build any build liquidity for the around stable,

Terry Earley

as And we off raise. light. spite running just of in through growth deposits, was it -- of quarter, to called Well, Deposit sub-debt the a I some time lot said, levels. it us loan liquidity called came to pretty still high-priced calls us strong carry did growth high it the -- carry

pretty the excess come well with just I On we challenges right, you might was that but the when was take things gotten that, a I'll bit liquidity realized the side, stronger of the care a it have have look, -- quarters it's little And -- the liquidity of and on quarter, -- it. have the wondered you now. had I'll there, drag that deposit end it taken NIM on

Operator

Gary from comes Our Davidson. D.A. next with question Tenner

Gary Tenner

just wanted ask CD maturities. on a the I to follow-up

a there's the slug like of the Sounds first good in year. coming half

what you're terms there little versus in are, what us maturity can the you renewal on about thinking rates retention and gap color repricing of the rates? your of give terms a In

Terry Earley

million XX in that. Retention, It's Well, the first a of quarter year. level, we the probably about had of something the we rate quarters basis point best like have X the at the in rate. repricing average XX $XXX down to X.XX%,

but really see brokered reducing CD it, off we really I You rates, but even ran What can. on stuff. good more we were we off, in for can't QX, ran retention while

so our flat CDs, we were mean, -- -- -- we quarter. quarter customer the we we over And actually pretty over flat I the on were

know some bit. that necessarily good can loans prime. a and floating just it's we'll that doing more down than but we LIBOR -- don't got little are -- But have be there's rate probably opportunity, While a that, there's that that meaningful again. X-month also I

this things mind, of got bit my that that to little other I'm in so days repricing are LIBOR, in the using the loan $XXX of portfolio hedged we've to we million there. XX And than a XX was of repricing out XX-day CDs the more got because

kind pretty I so level. just that to us help? going kind think keep that's of And of Does

Gary Tenner

Yes, And missed that's it. great. then also, I

CECL mentioned renewing doing need, you -- Did for obviously, having provision X build You we're to of your regard the kind not all impact? with acquired updated the projections or the on loans. loans for the day CECL

Terry Earley

was, We ends. have. centered range I it tighter range I around our day gotten think took But right on would quarter, which -- both our the said I'd Audit yesterday. committee this X.XX%. where through before when we last say has is we X.XX% to

let's like I'd midpoint can within -- and range, if to want to -- to X.XX%. to And possible. confines would the very of I I like it times, be be confining at the which X.XX% just call So be above of the GAAP,

Operator

next Rose James. Raymond question from And Michael with our comes

Michael Rose

loan growth. quarter's this about talk to wanted Just

I non-PCI acquired loans if reunderwriting about loans, obviously, the out figure strong those how much the obviously, originated million, growth. $XXX at the of if because and look So the Green $XXX were loans, was down million, -- but I

loans? the of Green this kind quarter's much of of how growth reunderwriting was So

Charles Holland

was I was mean X% new all loans. annualized all the growth business, new

of that was real growth. what that none or you, was renewing So have or rewriting

of is in the putting shows bit gain the that amount a new we're movement out. it slide. commitment just I more commitments we've there just And slide think quarter little the you that our started on to best momentum each

and production clearest of loan our And you view that so probably gives the loan coming production.

point But the getting we're a pretty in think I us funny for seeing you're to loan portfolio. But where going we're side. to solid. looks And a think on we're managing those I paydowns always to understanding First a better. those but bring going lot have paydowns. getting encouraged and is of healthy quarter they're commitments. Listen, Nothing XXXX dang I'm some crazy, what

Terry Earley

-- what that pipelines basis on tend I week. is add I'll watch incredibly week an to Michael, granular And the to

Charles Holland

Loan by loan.

Terry Earley

and the only where as loan, which is the it's And how by within and it's is progressing the not deals, quality ahead, and opportunity deals it and is in we week-to-week, we but closing are funding stage there through. Loan building. strengthened look

that's function a our function right think good also it's teams. function is a I so but of how It's a and Houston of on the especially, of disruption, focus market now. DFW, just And

So we're amount the of pipelines pretty bullish on how building.

Michael Rose

going brought the Yes. was to commitments that because glad up my question. you I'm be next

acquired and with natural the payoffs commitment pretty of in growth. So the strong kind book balancing commitments

kind about growth the a a year? of basis, you growth Just this guys way kind single-digit think loan for of upper to net on

Terry Earley

wouldn't the I consensus guys any sir. you to Yes, higher growth get what is there. see want on

in to about. I've pretty but optimism mortgage raise ought don't place median our You're excluding take good negative X% this think we you for Well, loan growth do a a the sign did is warehouse, to banks tracked X%. we it. as over us happy a X%, we're quarter. And XX and -- little

for like quarters, done people pretty some And had that. good some some the we is take shrinkage. people -- you guys Most good. where have are have X% year. We some And will

Charles Holland

little probably when hire if think add we bit with successful these But you let's you And these at on they get expectations we of mid-single-digit in some people Terry, depending we the to change. just we're hiring a able answer continue growth. numbers are to the later loan some let just out them on and There's from agree going can I may new because and are in-house, to think could We in be at going to us, on. different be let's we them. folks, are more me I figure just right give insight who where But give year. are, later hiring your -- those we and to year not

Terry Earley

And once them, takes you get time. it

Charles Holland

six takes returning. months a to before start It they year

Michael Rose

Fair enough.

for Just one follow-up question me.

ratio. quarter. I are You XXX% know guys had around good you growth this loan-to-deposit

the could CD expect the through the to year? about year further margin the on part core As of some once hits moving we're pressure thinking repricing the in growth, that fund we first potential

Terry Earley

we're seasonal loan-to-deposit mortgage on as have to accelerates, obviously, spread mortgage -- at to freedom like of put growth warehouse. the And a And a lot have builds don't -- XX% sure. doubt the in the And this going degrees that's NIM to to the really for I if the X as There's low quarters mean to loan-to-deposit the well. pressure We between XXX% on look, the lower the mean I sure. that warehouse. no we're about excluding business. side. ratio, if that's a mortgage middle going some year, thing manage For we of continue that. of

If ago, it spigot little and XX, stay if that need of to and be I lot more, to was bit. it little you we take how to the drive feels could there's customers that be going to a up little sure. aggressive that, changed like by bit, XXX to works, the the the to the a on So open loans doesn't it's of in it on pieces. and need if turn if from it's but days a the we going terms it's going moving But mean, But interest a just of get to we I I hope rates come to price be depending materially have spigot, will. affected hope and it's go sensitivity And there. to mix it where also now, deposit right real side, much

Charles Holland

why down. And on really the don't of able book. marketplace, to only grow deposits. is think slowing deposit driver disruptions it we've really, a I that's in our people, but We that not on been it's big see that

Operator

Thank this participating. you Thank call. and for you. today's concludes Ladies conference gentlemen,

disconnect. now may You

Veritex (VBTX) 29 Jan 202019 Q4 Earnings call transcript