DALLAS, November 01, 2021 (GLOBE NEWSWIRE) – Veritex Holdings, Inc. (Nasdaq: VBTX) (“Veritex†or the “Companyâ€), the parent holding company of Veritex Community Bank (“Bankâ€), announced today hui the completion of its acquisition of North Avenue Capital, LLC (“NACâ€). Pursuant to the definitive agreement for the acquisition, the Bank paid $ 57.5 million in cash to existing NAC shareholders. Three years after the closing of the transaction, NAC is entitled, subject to adjustment, to receive an additional $ 5 million in cash subject to certain performance measures. NAC will continue to operate under its current name and brand and in its current office premises, as a wholly owned subsidiary of the Bank.
The transaction makes the Bank a leading player in USDA’s Business and Industry Loan (“B&Iâ€) program. He advanced the company’s strategy of diversifying revenue sources and generating a significant gain on selling and loan servicing costs. The Company will leverage NAC’s loan research technology to further improve its products and services. In addition, the Company will provide additional resources and expertise to complement NAC’s experienced team and the Bank’s proven strategy.
Veritex Chairman and CEO C. Malcolm Holland said, “We are very pleased to complete the acquisition of NAC. It has been a while since we wanted to expand our current presence in the USDA lending space and we were impressed with what we learned about NAC and its people. This transaction provides us with the opportunity to become the premier player in the USDA B&I lending space and we look forward to working with the NAC team in the future. “
About Veritex Holdings, Inc.
Based in Dallas, Texas, Veritex is a banking holding company that conducts banking business through its wholly-owned subsidiary, Veritex Community Bank, with locations in the Dallas-Fort Worth metropolitan area and the greater Houston area. . Veritex Community Bank is a Texas state chartered bank regulated by the Texas Department of Banking and the Federal Reserve System Board of Governors. For more information, visit www.veritexbank.com.
Forward-looking statement
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on various facts and are derived from material assumptions, current expectations, estimates and projections and are subject to and risks, uncertainties and other unknown factors that may cause actual results, performance or achievements to differ materially from future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements include, without limitation, statements relating to the impact Veritex expects its acquisition of NAC to have on its operations, financial condition and financial results, and Veritex’s expectations regarding its ability to successfully integrate the combined businesses and the amount of overall cost savings and operational efficiencies that Veritex expects to achieve as a result of the acquisition. Forward-looking statements also include statements about future financial performance, Veritex’s business and growth strategy, projected plans and targets, and other projections based on macroeconomic and industry trends, which are inherently unreliable due to multiple factors that have an impact on economic trends, and such variations can be significant. Statements preceded, followed by or which otherwise include the words “believes”, “expects”, “anticipates”, “intends”, “projects”, “estimates”, “plans” and similar expressions or future or conditional verbs such as “” will “,” should “,” would “,” could “and” could “are generally forward-looking in nature and not historical facts, although not all forward-looking statements include what is precedes. In addition, certain important factors could affect future results and cause actual results to differ materially from those expressed in forward-looking statements, including, but not limited to, that the businesses of Veritex and NAC will not be. successfully integrated, that the cost savings and any synergies resulting from the acquisition may not be fully realized or may take longer than expected, interruption of the acquisition making it more difficult to maintain relationships with employees, customers or other parties with whom Veritex or NAC have a business relationship, diversion of management time spent on acquisition-related matters, reaction to the transaction of customers, employees and counterparties of companies and d other factors, many of which are beyond the control of Veritex and NAC. We refer you to the “Risk Factors†and “Management’s Discussion and Analysis of Financial Condition and Results of Operations†sections of Veritex Annual Report on Form 10-K for the year ended December 31, 2020 and any update of these risk factors as set out in Veritex Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other documents filed with the SEC and available on the SEC website at www.sec.gov. If one or more events relating 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 or NAC anticipates. Therefore, you should not place undue reliance on these forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. Neither Veritex nor NAC undertakes, and specifically disclaims any obligation, to update or revise forward-looking statements, whether as a result of new information, future developments or otherwise. All forward-looking statements, express or implied, included in this press release are expressly qualified in their entirety by the cautionary statements contained or referred to herein.
Source: Veritex Holdings, Inc.
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