10 Best Small Cap Bank Stocks To Invest In Now

4. Veritex Holdings Inc. (NASDAQ:VBTX)

Market Capitalization as of March 28: $1.33 billion

Number of Hedge Fund Holders: 26

Veritex Holdings Inc. (NASDAQ:VBTX) operates as the bank holding company for Veritex Community Bank which provides various commercial banking products and services to small and medium-sized businesses and professionals in the US. The company accepts deposit products and offers loan products.  It also provides interest rate swap services.

The company’s Commercial Real Estate (CRE) lending segment makes up most of its loan portfolio. In 2024, the company significantly reduced CRE and ADC (Acquisition, Development, and Construction) concentrations. CRE concentrations ended at 299% in 2024, while ADC ended at 87%. This reduction improved the bank’s risk profile. Total CRE criticized loans decreased by 20% year-over-year.

The CRE maturity profile indicates that Veritex Holdings Inc. (NASDAQ:VBTX) has under $400 million in fixed-rate maturities at an average rate of 5.48% over the next 4 quarters. This refers to prioritizing loans that are backed by affordable deposits to maximize the profit from interest rate difference. Loan payoffs remain elevated, despite a 44% loan production increase from 2023 to 2024. The company is also working to keep its loan-to-deposit ratio below 90%.