Veritex Holdings Dropped from S&P Regional Banks Select Industry Index.

Veritex Holdings, Inc. (VBTX) has been removed from the S&P Regional Banks Select Industry Index. The company is a bank holding company that conducts banking activities through its wholly-owned subsidiary, Veritex Community Bank. Veritex provides a range of banking services, including commercial and retail lending, checking and savings deposit products, and online banking solutions.

Huntington Bancshares Inc. (Huntington) has reported strong third-quarter results, with earnings per share (EPS) increasing by 18% year-over-year on an adjusted basis, according to Huntington's Q3 earnings call Huntington's Q3 earnings call. The company's revenue grew by 14% year-over-year, and adjusted pre-provision net revenue (PPNR) increased by 16%. The company's return on tangible common equity (ROTCE) was above 17%, while loan growth accelerated to 9.2% year-over-year, driven by commercial lending and geographic expansion in Texas and the Carolinas.

Huntington's acquisition of Veritex Holdings, Inc. (VBTX) is expected to enhance its presence in Texas, making it the 14th largest depository in the state. The company has raised its financial guidance for the year, expecting higher net interest income and fee income growth. However, the stock has experienced a double-digit decline over the past month, reflecting broader market concerns about credit quality in the banking sector.

The company's noninterest expense was higher than prior guidance due to revenue-related compensation, impacting overall cost management. There is ongoing economic and policy uncertainty, which could affect future performance. The competitive landscape in expansion markets like Texas and the Carolinas remains challenging, with pressure from both national and local banks. The company expects to incur significant acquisition-related one-time expenses in the fourth quarter, ranging from $125 million to $150 million.

Despite strong performance, Huntington's balance sheet expansion has come without new credit-quality concerns. Third-quarter net charge-offs totaled 0.22% of loans and leases, down from 0.30% a year ago. The criticized asset and nonperforming asset ratios also declined on a year-over-year basis, as reported by American Banker American Banker.