Dallas bank Veritex sets terms for $35 million IPO

Veritex Holdings, a bank with over $700 million of assets and eight branches in the Dallas MSA, announced terms for its IPO on Monday. The Dallas, TX-based company plans to raise $35 million by offering 2.7 million shares at a price range of $12 to $14. At the midpoint of the proposed range, Veritex would command a fully diluted market value of $120 million.

Veritex operates through Veritex Community Bank in Dallas and North Dallas, focusing on small to medium-sized businesses and professionals. Another Texas-based bank, Green Bancorp (GNBC), went public in early August and became the best-performing bank IPO so far this year, up 16% after it priced at the low end of the range. Veritex's primary shareholders include investor Ned Fleming, Vice Chairman William Murphy and Gregg Allen.

Combined net interest and noninterest income rose 15% to $13 million during the six months ended June 30, 2014. Net income rose 48% to $2.1 million. Since year-end, the bank's efficiency ratio improved 75 bps to 69%. Its return on average assets also improved to 0.65% from 0.58% at of December 31.

Veritex Holdings, which was founded in 2009 and booked $25 million in sales for the 12 months ended June 30, 2014, plans to list on the NASDAQ under the symbol VBTX. Sandler O'Neill and Stephens Inc. are the joint bookrunners on the deal. It is expected to price during the week of October 6, 2014.