Exhibit 99.1
V E R I T E X East Coast Investor Meetings June 9 & 10, 2016
2 Forward Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements about our expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. You can identify forward-looking statements by the use of forward –looking terminology such as “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plans,” “projects,” “outlook” and similar words or expressions that are predictions of or indicate future events or trends and that do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions. Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise and we may not be able to realize them. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). Certain factors that could affect our future results and cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to whether the Company can: successfully implement its growth strategy, including identifying acquisition targets and consummating suitable acquisitions; continue to sustain internal growth rate; provide competitive products and services that appeal to its customers and target market; continue to have access to debt and equity capital markets; and achieve its performance goals. Other risks include, but are not limited to: the possibility that credit quality could deteriorate; actions of competitors; changes in laws and regulations (including changes in governmental interpretations of regulations and changes in accounting standards); economic conditions, including currency rate fluctuations and interest rate fluctuations; and weather. While forward-looking statements reflect our good-faith beliefs, they are not guarantees of future performance. All forward-looking statements are necessarily only estimates of future results. Accordingly, actual results may differ materially from those expressed in or contemplated by the particular forward-looking statement, and, therefore, you are cautioned not to place undue reliance on such statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” and the forward-looking statement disclosure contained in Veritex’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 15, 2016. NON-GAAP FINANCIAL MEASURES This presentation includes certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided at the end of the presentation. Numbers in this presentation may not sum due to rounding. Unless otherwise referenced, all data presented is as of March 31, 2016.
Headquartered in Dallas, Texas Eleven locations located within one of the fastest growing metropolitan areas in the U.S. Strong core deposit mix with significant noninterest bearing deposits Relationship-driven commercial banking to small and medium sized businesses and professionals 3 Franchise Footprint Overview Veritex – “Truth in Texas Banking” Note: Dollars in millions (Unaudited) Financial Highlights Other Highlights Dallas Morning News Top 100 Places to Work 2015 Ranked #9 out of 40 top banks in the country in American Banker’s 2015 “Best Banks to Work For” Ranked #2 in Texas and #13 in the nation in S&P Global Market Intelligence’s ranking of the top-performing community banks between $1 billion -$10 billion for 2015. Balance Sheet Asset Quality Profitability As of March 31, 2016 As of March 31, 2016 For the Three Months Ended March 31, 2016 Total Assets $1,130 Total Loans 885 Total Deposits 946 Total Equity 135 Total Stockholders' Equity/Total Assets 11.95% NPAs / Assets 0.11% NPLs / Loans 0.08 Allowance / Loans 0.83 NCOs / Average Loans Outstanding 0.03 ROAA 1.04% ROAE 8.39 Net Interest Margin 3.87 Efficiency Ratio 54.01
Veritex History Note: Dollars in thousands, unless otherwise noted (Unaudited) 4 Founded Veritex Holdings & acquired $182 million asset Professional Bank Acquired $166 million asset Fidelity Bank and $54 million asset Bank of Las Colinas Grew $86 million organically and hit $500 million in total assets Grew $141 million organically Completed $40 million Initial Public Offering and grew $137 million organically Acquired $121 million asset IBT Bancorp, Inc. Grew $91 million or 35% organically in 1Q16 $197,949 $427,820 $1,039,600 $524,127 $664,971 $802,286 $1,130,480 $181,800 $220,100 $121,417 0.03% 0.31% 0.58% 0.75% 0.98% 1.04% 2010 2011 2012 2013 2014 2015 QTD 3/31/2016 Total Assets at Year End Assets Acquired During the Year ROAA
Dallas Market Outlook 1 United States Census Bureau release 03/24/2016 2 Dallas Fed Regional Economic Indicators 05/24/2016 5 Dallas-Fort Worth market is one of the fastest growing in the U.S. with approximately 400 people moving to the area daily1 Dallas-Fort Worth economy continues to expand, performing better than other Texas and national markets2 Dallas-Fort Worth employment grew an annualized 2.6 percent outpacing the state’s 1.1 percent and the nation’s 1.6 percent in April2 Major companies including Toyota, FedEx, State Farm, Liberty Mutual and JP Morgan Chase recently announced significant relocations and/or expansions in Dallas-Fort Worth as a result of the market’s rapidly growing population, affordable cost of living, and pro-business climate DFW serves as the corporate headquarters for numerous Fortune 500 companies across many varied industries including ExxonMobil, AT&T, American Airlines, Texas Instruments, Tenent Healthcare, Fluor, Kimberly-Clark, to name a few
Veritex Plan for 2016 6 Continue pace of organic growth and growth in earnings Consider accretive acquisitions that strengthen our franchise and leverage our capabilities Adhere to strong underwriting standards and maintenance of excellent credit quality Execute strategic plan by growing and thus increasing the bank’s “scarcity value” related to banks above $1 billion in Dallas/Fort Worth With a very seasoned executive management team in place, continue to build a platform capable of supporting growth in excess of $2 billion Continue to add experienced commercial bankers resulting in the expansion of our C&I loan portfolio Continue to assess the addition of new line of business No loans secured by oil and gas assets and no plans to add any energy-related loans
Experienced Leadership Executive Management C. Malcolm Holland, III Chairman of the Board, Chief Executive Officer 34 years of banking experience, all in the Dallas metropolitan area Former CEO of Texas region for Colonial Bank, which grew from $625 million to $1.6 billion Former President of First Mercantile Bank William C. Murphy Vice Chairman 45 years of banking experience Former Chairman or CEO of several Dallas community banks Has led 25 financial institution transactions Noreen E. Skelly Chief Financial Officer 29 years of banking experience Former CFO of Highlands Bancshares, Inc. Former SVP and Retail line of business chief finance officer for Comerica and LaSalle Banks Jeff Kesler Chief Lending Officer 16 years of banking experience Former president of Dallas and Austin markets for Colonial Bank Clay Riebe Chief Credit Officer 30 years of banking experience Former Chief Lending Officer of American Momentum Bank Former market president of Citibank’s Bryan/College Station markets LaVonda Renfro Chief Retail Officer 32 years of banking experience Former Retail Executive of Colonial Bank/BB&T Former Senior Vice President, District Manager for Bank of America’s Austin and San Antonio markets Angela Harper Chief Risk Officer 25 years of banking experience Former Senior Vice President, Credit Administration Officer and Risk Management Officer for the Texas Region of Colonial Bank 7
8 Loan Growth Gross Loans 29% CAGR Note: Dollars in millions Loan Composition As of March 31, 2016 $298 $398 $495 $603 $821 $885 2011 2012 2013 2014 2015 1Q16 Commercial 43% Construction and Land 23% Farmland 2% 1 - 4 Family Residential 22% Multi - Family Residential 3% Nonfarm Nonresidential 6% Consumer 1%
9 Deposit Growth Note: Dollars in millions Deposit Composition 25% CAGR Deposits $365 $448 $574 $639 $868 $946 2011 2012 2013 2014 2015 1Q16 Money Market 48% Noninterest Demand Deposits 32% Other Savings 1% Time Deposits 11% Interest - bearing Demand Deposits 8% As of March 31, 2016
10 Track Record of Growth & Performance Tangible Book Value Per Common Share Diluted Earnings Per Share Annualized Reconciliation of non-GAAP financial measures can be found at the end of the presentation (Unaudited) Return on Average Assets Efficiency Ratio Annualized Annualized 0.03% 0.31% 0.58% 0.75% 0.98% 1.04% 2011 2012 2013 2014 2015 1Q16 92.18% 77.97% 69.84% 66.47% 60.83% 54.01% 2011 2012 2013 2014 2015 1Q16 $0.01 $0.24 $0.57 $0.72 $0.84 $1.04 2011 2012 2013 2014 2015 1Q16 $5.28 $5.77 $6.46 $8.96 $9.59 $9.89 2011 2012 2013 2014 2015 1Q16
11 Reconciliation of Non-GAAP Measures The Company’s management uses certain non-GAAP (generally accepted accounting principles) financial measures to evaluate its performance including tangible book value per common share. The Company has included in this presentation information related to this non-GAAP financial measure for the applicable periods presented. Reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measures is presented in the table below. Amounts in thousands, except per share data As of December 31, 2011 2012 2013 2014 2015 1Q16 Total Stockholders' Equity $58,676 $61,860 $66,239 $113,312 $132,046 $135,241 Preferred Stock (8,000) (8,000) (8,000) (8,000) - - Common Equity 50,676 53,860 58,239 105,312 132,046 135,241 Goodwill (19,148) (19,148) (19,148) (19,148) (26,865) (26,865) Intangible Assets (2,183) (1,875) (1,567) (1,261) (2,410) (2,347) Tangible Common Equity 29,345 32,837 37,524 84,903 102,771 106,029 Common Shares Outstanding 5,554 5,694 5,805 9,471 10,712 10,724 Tangible Book Value per Share $5.28 $5.77 $6.46 $8.96 $9.59 $9.89
