Veritex Holdings, Inc. Announces Extension of Stock Buyback Program

Rhea-AI Summary

Veritex Holdings (Nasdaq: VBTX) has announced the extension of its stock buyback program through March 31, 2026. The program authorizes the company to purchase up to $50.0 million of its outstanding common stock. To date, Veritex has repurchased 555,016 shares, equivalent to $13.1 million under the program.

The buyback program, originally approved in 2024, will be funded using the company's cash on hand and operational cash from Veritex Community Bank. The Board of Directors retains the right to suspend, terminate, amend, or modify the program at any time without prior notice. The program does not obligate the company to purchase any specific number of shares and will be subject to market conditions, legal requirements, and other considerations.

Positive

• Authorization to repurchase up to $50.0 million in shares shows strong commitment to shareholder value
• Company has already executed $13.1 million in buybacks, demonstrating program implementation
• Program extension indicates company's continued financial stability and confidence

Negative

• Buyback program may reduce cash available for other strategic investments
• No obligation to purchase shares means actual buybacks may be

Insights

Financial Analyst

Veritex's extension of its $50 million stock buyback program reflects a continued commitment to capital return while maintaining strategic flexibility. The company has utilized just 26% of the authorization ($13.1 million) since the program's inception, indicating a measured, opportunistic approach to repurchases.

This extension preserves an important capital allocation tool without requiring new authorization. With the remaining $36.9 million representing approximately 2.7% of Veritex's $1.37 billion market cap, the program provides meaningful support for shareholders while not depleting capital resources needed for banking operations.

The decision to fund repurchases through cash on hand and operational cash flows, rather than debt, signals financial health and confidence in the bank's liquidity position. For a regional bank holding company, this balanced approach to capital management is particularly important in maintaining regulatory capital ratios while still delivering shareholder value.

The Board's discretionary language preserves maximum flexibility to adjust execution based on market conditions, interest rate environments, or potential M&A opportunities that might arise in the regional banking space. This optionality is valuable in the banking sector where capital requirements and economic conditions can shift rapidly.

While not transformative, this extension represents sound capital stewardship with a shareholder-friendly orientation, providing a potential floor for the stock during market volatility while maintaining strategic optionality.

DALLAS, March 31, 2025 (GLOBE NEWSWIRE) -- Veritex Holdings, Inc. (Nasdaq: VBTX) (“Veritex” or "the Company”), the parent holding company for Veritex Community Bank, today announced that its Board of Directors (the "Board") authorized the extension of the stock buyback program (the "Stock Buyback Program") through March 31, 2026, pursuant to which the Company is authorized to purchase up to $50.0 million shares of the Company’s outstanding common stock. To date, the Company has repurchased 555,016 shares, or $13.1 million under the Stock Buyback Program. The Stock Buyback Program may be suspended, terminated, amended or modified by the Board at any time without prior notice at the Board’s discretion. The Stock Buyback Program was originally approved by the Board in 2024 and was set to expire on March 31, 2025. Other than the extension of the Stock Buyback Program for an additional year, no changes were made to the Stock Buyback Program.

The Stock Buyback Program is expected to be funded using the Company’s cash on hand and cash from operations of Veritex Community Bank. Repurchases under the Stock Buyback Program may be made, from time to time, in amounts and at prices the Company deems appropriate. The Stock Buyback Program does not obligate the Company to purchase any shares of its common stock. Repurchases by the Company under the Stock Buyback Program will be subject to general market and economic conditions, applicable legal and regulatory requirements and other considerations.

About Veritex Holdings, Inc.

Headquartered in Dallas, Texas, Veritex is a bank holding company that conducts banking activities through its wholly-owned subsidiary, Veritex Community Bank, with locations throughout the Dallas-Fort Worth metroplex and in the Houston metropolitan area. Veritex Community Bank is a Texas state chartered bank regulated by the Texas Department of Banking and the Board of Governors of the Federal Reserve System. For more information, visit www.veritexbank.com.

Forward Looking Statement

This press release includes “forward-looking statements,” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements include statements regarding Veritex’s projected plans and objectives, including expectations about share repurchases. Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “target,” “estimate,” “seek,” “plan,” “outlook,” “continue,” “positions,” “prospects” or “potential,” by future conditional verbs such as “will,” “would,” “should,” “could” or “may”, or by variations of such words or by similar expressions. These forward-looking statements are subject to numerous assumptions, risks and uncertainties which change over time and are beyond Veritex’s control. Forward-looking statements speak only as of the date they are made and Veritex assumes no duty to supplement, update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. We refer you to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of Veritex’s Annual Report on Form 10-K for the year ended December 31, 2024 and any updates to those risk factors set forth in Veritex’s Current Reports on Form 8-K and other filings with the Securities and Exchange Commission (“SEC”), which are available on the SEC’s website at www.sec.gov. If one or more events related to these or other risks or uncertainties materialize, or if Veritex’s underlying assumptions prove to be incorrect, actual results may differ materially from what Veritex anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. Veritex does not undertake any obligation, and specifically declines any obligation, to supplement, update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by law. All forward-looking statements, expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Veritex or persons acting on Veritex’s behalf may issue.

Source: Veritex Holdings, Inc.

Investor Relations:
972-349-6132
investorrelations@veritexbank.com

FAQ

How much has Veritex Holdings (VBTX) spent on share buybacks so far?

Veritex has repurchased 555,016 shares totaling $13.1 million under the current Stock Buyback Program.

What is the total amount authorized for Veritex's (VBTX) stock buyback program?

The program authorizes Veritex to purchase up to $50.0 million of the company's outstanding common stock.

When does Veritex Holdings' (VBTX) extended stock buyback program expire?

The extended stock buyback program will run through March 31, 2026.

How will Veritex Holdings (VBTX) fund its share buyback program?

The program will be funded using the company's cash on hand and cash from operations of Veritex Community Bank.