Veritex Holdings Inc. expects total credit costs associated with a commercial loan relationship acquired from Sovereign Bancshares Inc. in 2017 to range from $6 million to $6.5 million in the third quarter.
The acquired commercial loan relationship consists of a $7.8 million loan to an independent oil and gas exploration company that filed for bankruptcy protection in 2018 and recently entered into a sales process pursuant to Section 363 of the Bankruptcy Code. Veritex Holdings had classified the acquired loan relationship as a nonperforming asset in its financial results for an extended period and included it in its disclosure of nonperforming assets in prior periods as the company monitored the relationship and sought to find a resolution.
The company noted in a filing that it has not yet finalized the financial results for the third quarter and actual amounts could differ from those currently projected.
