Veritex board members resign after 10 years
Veritex Holdings, Inc. (NASDAQ: VBTX) is an American bank holding company that provides commercial banking services such as personal checks, corporate finance, investing, mobile banking, money market and security through its wholly owned subsidiary Veritex Community Bank. The company has offices in Dallas, Fort Worth and Houston. Veritex Community Bank is also a state-chartered bank in Texas regulated by the Texas Department of Banks and the Board of Governors of the Federal Reserve System.
Veritex recently made headlines to announce the resignation of Ned N. Fleming III from its board of directors. Mr. Fleming was instrumental in founding Veritex 10 years ago and provided important financial resources and guidance.
This morning VBTX is up 1.3% to $ 33.27. Equity has risen over 150% since hitting its record low of $ 12.32 last April. Additionally, Veritex’s shares are up 29% year-to-date, with 30- and 50-day moving averages providing additional support.
Basically, Veritex offers something unique when compared to most large market capitalization banks. Put simply, VBTX offers much greater growth potential. However, the company also carries many risks. For example, the Veritex balance sheet currently has total debt of $ 1.07 billion with only $ 260 million in cash, making it less financially stable than would normally be expected for a company in the banking sector.
Even so, Veritex’s financial growth has been phenomenal in recent years, with the exception of 2020. Since 2017, the company has more than tripled its sales. Veritex also increased its net income by around 400%, despite the company’s bottom line losses last year. In particular, Veritex’s net income declined 29% in fiscal 2020.
Veritex stock is currently trading at a price / earnings ratio of 22.19. This is excellent value for a company with such a high growth rate. Overall, investing in Veritex stocks is a very interesting growth and dividend game from a risk / return perspective.