DALLAS, April 23, 2024 (GLOBE NEWSWIRE) -- Veritex Holdings, Inc. ("Veritex", the "Company", "we" or "our") (NASDAQ:VBTX), the holding company for Veritex Community Bank, today announced the results for the quarter ended March 31, 2024.

"I am encouraged with the start of 2024. We continue to execute on our strategic positioning of our balance sheet with growth in deposits, capital and loans", said C. Malcolm Holland, III. "Credit metrics remain stable and show positive trends as we gain momentum moving into the second quarter."

	Quarter to Date
	Q1 2024			Q4 2023			Q1 2023
	(Dollars in thousands, except per share data) (unaudited)
GAAP
Net income	$	24,156		$	3,499		$	38,411
Diluted EPS		0.44			0.06			0.70
Book value per common share		28.23			28.18			27.54
Return on average assets¹		0.79	%		0.11	%		1.28	%
Return on average equity¹		6.33			0.92			10.55
Efficiency ratio		62.45			77.49			48.42
Non-GAAP²
Operating earnings	$	29,137		$	31,625		$	43,274
Diluted operating EPS		0.53			0.58			0.79
Tangible book value per common share		20.33			20.21			19.43
Pre-tax, pre-provision operating earnings		43,656			47,688			66,382
Pre-tax, pre-provision operating return on average assets¹		1.42	%		1.54	%		2.20	%
Pre-tax, pre-provision operating return on average loans¹		1.84			1.97			2.83
Operating return on average assets¹		0.95			1.02			1.44
Return on average tangible common equity¹		9.52			2.00			15.81
Operating return on average tangible common equity¹		11.34			12.37			17.72
Operating efficiency ratio		58.73			55.50			45.63

¹ Annualized ratio.

²Refer to the section titled "Reconciliation of Non-GAAP Financial Measures" for a reconciliation of these non-generally accepted accounting principles ("GAAP") financial measures to their most directly comparable GAAP measures.

Other First Quarter Metrics and Company Highlights

Total deposits grew $1.62 billion, or 18%, compared to March 31, 2023;
Total loans grew $46.4 million, or 0.5%, compared to March 31, 2023;
Loan to deposit ratio decreased to 91.7% as of March 31, 2024 compared to 93.6% as of December 31, 2023 and 107.7% as of March 31, 2023;
Loan to deposit ratio, excluding mortgage warehouse loans, decreased to 86.9% as of March 31, 2024 compared to 89.1% as of December 31, 2023 and 102.4% as of March 31, 2023;
Tangible book value per common share increased 0.6%, or $0.12, as of March 31, 2024 compared to December 31, 2023, and increased 4.63% or $0.90 as of March 31, 2023;
Allowance for credit losses ("ACL") to total loans increased to 1.15%, compared to 1.14% as of December 31, 2023 and 1.02% as of March 31, 2023;
Pre-tax, pre-provision operating return on average assets was 1.42% as of March 31, 2024;
Announced authorization of a stock buyback program on March 28, 2024 to purchase up to $50 million of outstanding common stock over the course of a year as the Company deems appropriate;
Sold $120.1 million of lower-yielding available-for-sale ("AFS") debt securities with a 3.11% average yield and reinvested the proceeds in higher yielding AFS securities with a 6.24% average yield; and
Declared quarterly cash dividend of $0.20 per share of outstanding common stock payable on May 24, 2024.

Results of Operations for the Three Months Ended March 31, 2024

Net Interest Income

For the three months ended March 31, 2024, net interest income before provision for credit losses was $92.8 million and net interest margin was 3.24% compared to $95.5 million and 3.31%, respectively, for the three months ended December 31, 2023. The $2.7 million decrease, or 2.9%, in net interest income before provision for credit losses was primarily due to a $3.5 million decrease in interest income on loans driven by a decrease in loan yields, a $817 thousand decrease in interest income on equity securities and other investments and a $559 thousand increase in interest expense on transaction and savings deposits driven by an increase in funding costs on deposits. The decrease in net interest income was partially offset by a $1.4 million increase in interest income on debt securities and a $1.2 million decrease on advances from the Federal Home Loan Bank ("FHLB"), during the three months ended March 31, 2024. Net interest margin decreased 7 bps compared to the three months ended December 31, 2023, primarily due to the increase in funding costs on deposits during three months ended March 31, 2024, partially offset by an increase in debt securities.

Compared to the three months ended March 31, 2023, net interest income before provision for credit losses for the three months ended March 31, 2024 decreased by $10.6 million, or 10.2%. The decrease was primarily due to a $19.5 million increase in interest expense on certificates and other time deposits, a $16.9 million increase in interest expense on transaction and savings deposits and a $508 thousand decrease in interest income on equity securities and other investments. The decrease was partially offset by a $11.0 million decrease in advances from FHLB, a $10.2 million increase in interest income on loans driven by an increase in loan yields and average balances, a $2.7 million increase in interest income on debt securities and a $2.5 million increase in interest income on deposits in financial institutions and fed funds sold. Net interest margin decreased 45 bps from 3.69% for the three months ended March 31, 2023. The decrease was primarily due to the increase in funding costs on deposits during the three months ended March 31, 2024, partially offset by an increase in loan yields and debt securities.

Noninterest Income

Noninterest income for the three months ended March 31, 2024 was $6.7 million, an increase of $24.5 million, or 137.4%, compared to the three months ended December 31, 2023. The increase was primarily due to a $29.4 million loss in equity method investment income recorded in the three months ended December 31, 2023 related to a write down of our equity method investment in Thrive Mortgage, LLC ("Thrive") related to Thrive's entry into a definitive agreement in December 2023 to be acquired by Lower Holding Company, which acquisition closed in March of 2024, with no corresponding or additional write down taken in the three months ended March 31, 2024. In addition, the increase was due to a $1.5 million increase in other income driven by a $1.3 million increase in BOLI income and a $1.3 million increase in loan fees. The increase was partially offset by a $6.3 million loss on sales of investment securities as a result of a strategic restructuring in which we sold $120.1 million of lower-yielding AFS securities, at amortized cost, with a 3.11% average yield, and reinvested the proceeds in higher yielding AFS securities with a 6.24% average yield.

Compared to the three months ended March 31, 2023, noninterest income for the three months ended March 31, 2024 decreased by $6.9 million, or 50.8%. The decrease was primarily due to a $7.1 million decrease in government guaranteed loan income, primarily driven by a decrease in the Company's USDA sales, a $983 thousand decrease in loss on sales of investment securities and a $849 thousand decrease in other noninterest income.

Noninterest Expense

Noninterest expense was $62.1 million for the three months ended March 31, 2024, compared to $60.2 million for the three months ended December 31, 2023, an increase of $1.9 million, or 3.1%. The increase was primarily due to a $2.8 million increase in salaries and employee benefits and a $892 thousand increase in other noninterest expense. The increase is partially offset by a decrease of $1.6 million in professional and regulatory fees driven by FDIC insurance assessment expense, which includes a $768 thousand FDIC special assessment expense recorded in the fourth quarter 2023.

Compared to the three months ended March 31, 2023, noninterest expense for the three months ended March 31, 2024 increased by $5.5 million, or 9.7%. The increase was primarily due to a $3.0 million increase other noninterest expense, a $1.7 million increase in professional and regulatory fees driven by FDIC assessment fees that increased when the Company crossed $10 billion in total assets and a $1.5 million increase in salaries and employee benefits.

Financial Condition

Total loans held for investment ("LHI") was $9.25 billion at March 31, 2024, an increase of $43.0 million, or 1.9% annualized, compared to December 31, 2023.

Total deposits were $10.65 billion at March 31, 2024, an increase of $315.6 million, or 12.2% annualized, compared to December 31, 2023. The increase was primarily the result of an increase of $295.1 million in certificates and other time deposits, an increase of $131.2 million in noninterest-bearing deposits and an increase of $17.7 million in correspondent money market account balances. The increase was partially offset by a decrease of $128.3 million in interest-bearing transaction and savings deposits.

Credit Quality

Nonperforming assets ("NPAs") totaled $103.8 million, or 0.82% of total assets, at March 31, 2024, compared to $95.8 million, or 0.77% of total assets, at December 31, 2023. The Company had net charge-offs of $5.3 million for the three months ended March 31, 2024. Annualized net charge-offs to average loans outstanding were 22 bps for the three months ended March 31, 2024, compared to 40 bps and 4 bps for the three months ended December 31, 2023 and March 31, 2023, respectively.

ACL as a percentage of LHI was 1.15%, 1.14% and 1.02% at March 31, 2024, December 31, 2023 and March 31, 2023, respectively. The Company recorded a provision for credit losses of $7.5 million, $9.5 million and $9.4 million for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023, respectively . The recorded provision for credit losses for the three months ended March 31, 2024, compared to the three months ended December 31, 2023, was primarily attributable to an increase in general reserves as a result of changes in economic factors. The Company recorded a benefit for unfunded commitments of $1.5 million for the three months ended March 31, 2024, a $1.5 million benefit for unfunded commitments for the three months ended December 31, 2023, and a $1.5 million provision for unfunded commitments for the three months ended March 31, 2023. The recorded benefit for unfunded commitments for the three months ended March 31, 2024, compared to the three months ended December 31, 2023, was attributable to a decrease in unfunded commitment balances partially offset by changes in economic factors.

Income Tax

Income tax expense for the three months ended March 31, 2024 totaled $7.2 million, an increase of $1.2 million, or 20.5%, compared to the three months ended December 31, 2023. The Company's effective tax rate was approximately 23.1% for the three months ended March 31, 2024. The effective tax rate for the three months ended March 31, 2024 was primarily due to a net discrete tax expense of $384 thousand associated with the recognition of an excess tax expense realized on share-based payment awards.

Dividend Information

After the close of the market on Tuesday, April 23, 2024, Veritex's Board of Directors declared a quarterly cash dividend of $0.20 per share on its outstanding shares of common stock. The dividend will be paid on or after May 24, 2024 to stockholders of record as of the close of business on May 10, 2024.

Non-GAAP Financial Measures

Veritex's management uses certain non-GAAP (U.S. generally accepted accounting principles) financial measures to evaluate its operating performance and provide information that is important to investors. However, non-GAAP financial measures are supplemental and should be viewed in addition to, and not as an alternative for, Veritex's reported results prepared in accordance with GAAP. Specifically, Veritex reviews and reports tangible book value per common share; operating earnings; tangible common equity to tangible assets; return on average tangible common equity; pre-tax, pre-provision operating earnings; pre-tax, pre-provision operating return on average assets; pre-tax, pre-provision operating return on average loans; diluted operating earnings per share; operating return on average assets; operating return on average tangible common equity; and operating efficiency ratio. Veritex has included in this earnings release information related to these non-GAAP financial measures for the applicable periods presented. Please refer to "Reconciliation of Non-GAAP Financial Measures" after the financial highlights at the end of this earnings release for a reconciliation of these non-GAAP financial measures.

Conference Call

The Company will host an investor conference call and webcast to review the results on Wednesday, April 24, 2024, at 8:30 a.m. Central Time. Participants may pre-register for the call by visiting https://edge.media-server.com/mmc/p/tn7dvesw and will receive a unique PIN, which can be used when dialing in for the call.

Participants may also register via teleconference: https://register.vevent.com/register/BIc24bd6831f8f4f6ba885c40b9b8ffc95. Once registration is completed, participants will be provided with a dial-in number containing a personalized conference code to access the call. All participants are instructed to dial-in 15 minutes prior to the start time.

A replay will be available within approximately two hours after the completion of the call, and made accessible for one week thereafter. You may access the replay via webcast through the investor relations section of Veritex's website.

About Veritex Holdings, Inc.

Headquartered in Dallas, Texas, Veritex is a bank holding company that conducts banking activities through its wholly owned subsidiary, Veritex Community Bank, with locations throughout the Dallas-Fort Worth metroplex and in the Houston metropolitan area. Veritex Community Bank is a Texas state chartered bank regulated by the Texas Department of Banking and the Board of Governors of the Federal Reserve System. For more information, visit www.veritexbank.com.

Media and Investor Relations:

investorrelations@veritexbank.com

Forward-Looking Statements

This earnings 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 derived utilizing assumptions, current expectations, estimates and projections and are subject to known and unknown risks, uncertainties and other factors, which change over time and are beyond our control, that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements include, without limitation, statements relating to the expected payment of Veritex Holdings, Inc.'s ("Veritex") quarterly cash dividend; the impact of certain changes in Veritex's accounting policies, standards and interpretations; turmoil in the banking industry, responsive measures to mitigate and manage such turmoil and related supervisory and regulatory actions and costs; and Veritex's future financial performance, business and growth strategy, projected plans and objectives, as well as other projections based on macroeconomic and industry trends, which are inherently unreliable due to the multiple factors that impact broader economic and industry trends, and any such variations may be material. Statements preceded by, followed by or that otherwise include the words "believes," "expects," "anticipates," "intends," "projects," "estimates," "seeks," "targets," "outlooks," "plans" and similar expressions or future or conditional verbs such as "will," "should," "would," "may" and "could" are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing words. We refer you to the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of Veritex's Annual Report on Form 10-K for the year ended December 31, 2023 and any updates to those risk factors set forth in Veritex's Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings with the Securities and Exchange Commission ("SEC"), which are available on the SEC's website at www.sec.gov. If one or more events related 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 anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. Veritex does not undertake any obligation, and specifically declines any obligation, to supplement, update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by law. All forward-looking statements, expressed or implied, included in this earnings release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Veritex or persons acting on Veritex's behalf may issue.

VERITEX HOLDINGS, INC. AND SUBSIDIARIES Financial Highlights (Unaudited)

	For the Quarter Ended
	Mar 31, 2024			Dec 31, 2023			Sep 30, 2023			Jun 30, 2023			Mar 31, 2023
	(Dollars and shares in thousands, except per share data)
Per Share Data (Common Stock):
Basic EPS	$	0.44		$	0.06		$	0.60		$	0.62		$	0.71
Diluted EPS		0.44			0.06			0.60			0.62			0.70
Book value per common share		28.23			28.18			27.46			27.48			27.54
Tangible book value per common share¹		20.33			20.21			19.44			19.41			19.43
Dividends paid per common share outstanding²		0.20			0.20			0.20			0.20			0.20

Common Stock Data:
Shares outstanding at period end		54,496			54,338			54,305			54,261			54,229
Weighted average basic shares outstanding for the period		54,444			54,327			54,300			54,247			54,149
Weighted average diluted shares outstanding for the period		54,842			54,691			54,597			54,486			54,606

Summary of Credit Ratios:
ACL to total LHI		1.15	%		1.14	%		1.14	%		1.05	%		1.02	%
NPAs to total assets		0.82			0.77			0.65			0.55			0.35
NPAs to total loans and OREO		1.06			0.99			0.83			0.70			0.46
Net charge-offs to average loans outstanding⁴		0.22			0.40			0.08			0.48			0.04

Summary Performance Ratios:
Return on average assets⁴		0.79	%		0.11	%		1.06	%		1.10	%		1.28	%
Return on average equity⁴		6.33			0.92			8.58			8.96			10.55
Return on average tangible common equity^{1, 4}		9.52			2.00			12.80			13.35			15.81
Efficiency ratio		62.45			77.49			54.49			49.94			48.42
Net interest margin		3.24			3.31			3.46			3.51			3.69

Selected Performance Metrics - Operating:
Diluted operating EPS¹	$	0.53		$	0.58		$	0.60		$	0.64		$	0.79
Pre-tax, pre-provision operating return on average assets^{1, 4}		1.42	%		1.54	%		1.61	%		1.90	%		2.20	%
Pre-tax, pre-provision operating return on average loans^{1, 4}		1.84			1.97			2.05			2.43			2.83
Operating return on average assets^1,4		0.95			1.02			1.06			1.13			1.44
Operating return on average tangible common equity^1,4		11.34			12.37			12.80			13.70			17.72
Operating efficiency ratio¹		58.73			55.50			54.49			48.90			45.63

Veritex Holdings, Inc. Capital Ratios:
Average stockholders' equity to average total assets		12.43	%		12.27	%		12.30	%		12.23	%		12.09	%
Tangible common equity to tangible assets¹		9.02			9.18			8.86			8.76			8.66
Tier 1 capital to average assets (leverage)		10.12			10.03			10.10			9.80			9.67
Common equity tier 1 capital		10.37			10.29			10.11			9.76			9.32
Tier 1 capital to risk-weighted assets		10.63			10.56			10.37			10.01			9.56
Total capital to risk-weighted assets		13.33			13.18			12.95			12.51			11.99

¹Refer to the section titled "Reconciliation of Non-GAAP Financial Measures" after the financial highlights for a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures.

²Dividend amount represents dividend paid per common share subsequent to each respective quarter end.

³Nonaccrual PCD loans consist of PCD loans that transitioned upon adoption of ASC 326 Financial Instruments - Credit Losses and were accounted for on a pooled basis that have subsequently been placed on nonaccrual status.

⁴Annualized ratio for quarterly metrics.

VERITEX HOLDINGS, INC. AND SUBSIDIARIES Financial Highlights (In thousands)

	Mar 31, 2024			Dec 31, 2023			Sep 30, 2023			Jun 30, 2023			Mar 31, 2023
	(unaudited)						(unaudited)			(unaudited)			(unaudited)
ASSETS
Cash and cash equivalents	$	740,769		$	629,063		$	713,408		$	663,921		$	808,395
Debt securities, net		1,344,930			1,257,042			1,060,629			1,144,020			1,150,959
Other investments		76,788			76,238			80,869			138,894			137,621

Loans held for sale ("LHFS")		64,762			79,072			41,313			29,876			42,816
LHI, mortgage warehouse ("MW")		449,531			377,796			390,767			436,255			437,501
LHI, excluding MW		9,249,551			9,206,544			9,237,447			9,257,183			9,237,159
Total loans		9,763,844			9,663,412			9,669,527			9,723,314			9,717,476
ACL		(112,032	)		(109,816	)		(109,831	)		(102,150	)		(98,694	)
Bank-owned life insurance		85,359			84,833			84,867			84,375			84,962
Bank premises, furniture and equipment, net		105,299			105,727			106,118			105,986			107,540
Other real estate owned ("OREO")		18,445			—			—			—			—
Intangible assets, net of accumulated amortization		38,679			41,753			44,294			48,293			51,086
Goodwill		404,452			404,452			404,452			404,452			404,452
Other assets		241,863			241,633			291,998			259,263			245,690
Total assets	$	12,708,396		$	12,394,337		$	12,346,331		$	12,470,368		$	12,609,487
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest-bearing deposits	$	2,349,211		$	2,218,036		$	2,363,340		$	2,234,109		$	2,212,389
Interest-bearing transaction and savings deposits		4,220,114			4,348,385			3,936,070			3,590,253			3,492,011
Certificates and other time deposits		3,486,805			3,191,737			3,403,427			2,928,949			2,896,870
Correspondent money market deposits		597,690			580,037			493,681			480,598			433,468
Total deposits		10,653,820			10,338,195			10,196,518			9,233,909			9,034,738
Accounts payable and other liabilities		186,027			195,036			229,116			190,900			171,985
Advances from FHLB		100,000			100,000			200,000			1,325,000			1,680,000
Subordinated debentures and subordinated notes		230,034			229,783			229,531			229,279			229,027
Total liabilities		11,169,881			10,863,014			10,855,165			10,979,088			11,115,750
Commitments and contingencies
Stockholders' equity:
Common stock		611			610			609			609			609
Additional paid-in capital		1,319,144			1,317,516			1,314,459			1,311,687			1,308,345
Retained earnings		457,499			444,242			451,513			429,753			406,873
Accumulated other comprehensive loss		(71,157	)		(63,463	)		(107,833	)		(83,187	)		(54,508	)
Treasury stock		(167,582	)		(167,582	)		(167,582	)		(167,582	)		(167,582	)
Total stockholders' equity		1,538,515			1,531,323			1,491,166			1,491,280			1,493,737
Total liabilities and stockholders' equity	$	12,708,396		$	12,394,337		$	12,346,331		$	12,470,368		$	12,609,487

VERITEX HOLDINGS, INC. AND SUBSIDIARIES Financial Highlights (In thousands, except per share data)
	For the Quarter Ended
	Mar 31, 2024			Dec 31, 2023			Sep 30, 2023			Jun 30, 2023			Mar 31, 2023
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)
Interest income:
Loans, including fees	$	161,942		$	165,443		$	167,368		$	163,727		$	151,707
Debt securities		13,695			12,282			10,928			10,166			10,988
Deposits in financial institutions and Fed Funds sold		8,050			8,162			7,128			7,507			5,534
Equity securities and other investments		900			1,717			1,691			1,118			1,408
Total interest income		184,587			187,604			187,115			182,518			169,637
Interest expense:
Transaction and savings deposits		46,784			46,225			39,936			32,957			29,857
Certificates and other time deposits		40,492			40,165			36,177			28,100			20,967
Advances from FHLB		1,391			2,581			8,523			17,562			12,358
Subordinated debentures and subordinated notes		3,114			3,100			3,118			3,068			3,066
Total interest expense		91,781			92,071			87,754			81,687			66,248
Net interest income		92,806			95,533			99,361			100,831			103,389
Provision for credit losses¹		7,500			9,500			8,627			15,000			9,385
(Benefit) provision for unfunded commitments		(1,541	)		(1,500	)		(909	)		(1,129	)		1,497
Net interest income after provisions		86,847			87,533			91,643			86,960			92,507
Noninterest income:
Service charges and fees on deposit accounts		4,896			4,800			5,159			5,272			5,017
Loan fees		2,510			1,200			1,564			1,520			2,064
Loss on sales of debt securities		(6,304	)		—			—			—			(5,321	)
Government guaranteed loan income, net		2,614			4,378			1,772			4,144			9,688
Equity method investment (loss) income		—			(29,417	)		(136	)		485			(1,521	)
Customer swap income		408			238			202			961			217
Other income		2,538			1,009			1,113			1,310			3,387
Total noninterest income (loss)		6,662			(17,792	)		9,674			13,692			13,531
Noninterest expense:
Salaries and employee benefits		33,365			30,606			30,949			28,650			31,865
Occupancy and equipment		4,677			4,670			4,881			4,827			4,973
Professional and regulatory fees		6,053			7,626			7,283			6,868			4,389
Data processing and software expense		4,856			4,569			4,541			4,709			4,720
Marketing		1,546			1,945			2,353			2,627			1,779
Amortization of intangibles		2,438			2,438			2,437			2,468			2,495
Telephone and communications		261			356			362			355			478
Other		8,920			8,028			6,608			6,693			5,916
Total noninterest expense		62,116			60,238			59,414			57,197			56,615
Income before income tax expense		31,393			9,503			41,903			43,455			49,423
Income tax expense		7,237			6,004			9,282			9,725			11,012
Net income	$	24,156		$	3,499		$	32,621		$	33,730		$	38,411

Basic EPS	$	0.44		$	0.06		$	0.60		$	0.62		$	0.71
Diluted EPS	$	0.44		$	0.06		$	0.60		$	0.62		$	0.70
Weighted average basic shares outstanding		54,444			54,327			54,300			54,247			54,149
Weighted average diluted shares outstanding		54,842			54,691			54,597			54,486			54,606

¹ Includes provision for credit losses on AFS securities of $885 thousand for the three months ended March 31, 2023.

VERITEX HOLDINGS, INC. AND SUBSIDIARIES Financial Highlights (Unaudited)

	For the Quarter Ended
	March 31, 2024								December 31, 2023							March 31, 2023
	Average Outstanding Balance			Interest Earned/ Interest Paid		Average Yield/ Rate			Average Outstanding Balance			Interest Earned/ Interest Paid		Average Yield/ Rate		Average Outstanding Balance			Interest Earned/ Interest Paid		Average Yield/ Rate
	(Dollars in thousands)
Assets
Interest-earning assets:
Loans¹	$	9,283,815		$	157,585		6.83	%	$	9,280,439		$	161,021	6.88	%	$	9,141,137		$	146,801		6.51	%
LHI, MW		279,557			4,357		6.27			301,345			4,422	5.82			360,172			4,906		5.52
Debt securities		1,294,994			13,695		4.25			1,188,776			12,282	4.10			1,252,457			10,988		3.56
Interest-bearing deposits in other banks		584,593			8,050		5.54			587,929			8,162	5.51			478,345			5,534		4.69
Equity securities and other investments		76,269			900		4.75			82,271			1,717	8.28			124,985			1,408		4.57
Total interest-earning assets		11,519,228			184,587		6.44			11,440,760			187,604	6.51			11,357,096			169,637		6.06
ACL		(112,229	)							(111,937	)						(92,664	)
Noninterest-earning assets		929,043								977,811							949,881
Total assets	$	12,336,042							$	12,306,634						$	12,214,313

Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Interest-bearing demand and savings deposits	$	4,639,445		$	46,784		4.06	%	$	4,547,911		$	46,225	4.03	%	$	4,150,995		$	29,857		2.92	%
Certificates and other time deposits		3,283,735			40,492		4.96			3,285,164			40,165	4.85			2,588,728			20,967		3.28
Advances from FHLB and Other		100,989			1,391		5.54			182,935			2,581	5.60			1,122,683			12,358		4.46
Subordinated debentures and subordinated notes		229,881			3,114		5.45			229,648			3,100	5.36			231,251			3,066		5.38
Total interest-bearing liabilities		8,254,050			91,781		4.47			8,245,658			92,071	4.43			8,093,657			66,248		3.32

Noninterest-bearing liabilities:
Noninterest-bearing deposits		2,355,315								2,322,555							2,470,700
Other liabilities		192,809								228,135							173,380
Total liabilities		10,802,174								10,796,348							10,737,737
Stockholders' equity		1,533,868								1,510,286							1,476,576
Total liabilities and stockholders' equity	$	12,336,042							$	12,306,634						$	12,214,313

Net interest rate spread²							1.97	%						2.08	%							2.74	%
Net interest income and margin³				$	92,806		3.24	%				$	95,533	3.31	%				$	103,389		3.69	%

¹ Includes average outstanding balances of LHFS of $53.9 million, $31.2 million and $19.7 million for the quarters ended March 31, 2024, December 31, 2023, and March 31, 2023, respectively, and average balances of LHI, excluding MW.

² Net interest rate spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.

³ Net interest margin is equal to net interest income divided by average interest-earning assets.

VERITEX HOLDINGS, INC. AND SUBSIDIARIES

Financial Highlights

(Unaudited)

Yield Trend

	For the Quarter Ended
	Mar 31, 2024			Dec 31, 2023			Sep 30, 2023			Jun 30, 2023			Mar 31, 2023
Average yield on interest-earning assets:
Loans¹		6.83	%		6.88	%		6.92	%		6.85	%		6.51	%
LHI, MW		6.27			5.82			6.38			5.44			5.52
Total Loans		6.81			6.85			6.90			6.80			6.48
Debt securities		4.25			4.10			3.87			3.60			3.56
Interest-bearing deposits in other banks		5.54			5.51			5.43			5.16			4.69
Equity securities and other investments		4.75			8.28			4.94			3.25			4.57
Total interest-earning assets		6.44	%		6.51	%		6.51	%		6.36	%		6.06	%

Average rate on interest-bearing liabilities:
Interest-bearing demand and savings deposits		4.06	%		4.03	%		3.80	%		3.37	%		2.92	%
Certificates and other time deposits		4.96			4.85			4.55			3.92			3.28
Advances from FHLB		5.54			5.60			4.66			4.78			4.46
Subordinated debentures and subordinated notes		5.45			5.36			5.39			5.37			5.38
Total interest-bearing liabilities		4.47	%		4.43	%		4.21	%		3.86	%		3.32	%

Net interest rate spread²		1.97	%		2.08	%		2.30	%		2.50	%		2.74	%
Net interest margin³		3.24	%		3.31	%		3.46	%		3.51	%		3.69	%

¹Includes average outstanding balances of LHFS of $53.9 million, $31.2 million, $28.3 million, $23.4 million and $19.7 million for the three months ended March 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023, and March 31, 2023, respectively, and average balances of LHI, excluding MW.

²Net interest rate spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.

³Net interest margin is equal to net interest income divided by average interest-earning assets.

Supplemental Yield Trend

	For the Quarter Ended
	Mar 31, 2024			Dec 31, 2023			Sep 30, 2023			Jun 30, 2023			Mar 31, 2023
Average cost of interest-bearing deposits		4.43	%		4.38	%		4.12	%		3.61	%		3.06	%
Average costs of total deposits, including noninterest-bearing		3.42			3.37			3.15			2.73			2.24

VERITEX HOLDINGS, INC. AND SUBSIDIARIES

Financial Highlights

(Unaudited)

LHI and Deposit Portfolio Composition

	Mar 31, 2024					Dec 31, 2023					Sep 30, 2023					Jun 30, 2023					Mar 31, 2023
	(In thousands, except percentages)
LHI¹
Commercial and Industrial ("C&I")	$	2,785,987		30.1	%	$	2,752,063		29.9	%	$	2,841,024		30.7	%	$	2,850,084		30.7	%	$	2,895,957		31.3	%
Real Estate:
Owner occupied commercial ("OOCRE")		788,376		8.5			794,088		8.6			697,299		7.5			671,602		7.2			631,563		6.8
Non-owner occupied commercial ("NOOCRE")		2,352,993		25.5			2,350,725		25.5			2,398,060		26.1			2,509,731		27.1			2,505,344		27.1
Construction and land		1,568,257		16.9			1,734,254		18.8			1,705,053		18.4			1,659,700		17.9			1,831,349		19.8
Farmland		30,979		0.3			31,114		0.3			59,684		0.6			51,663		0.6			51,680		0.6
1-4 family residential		969,401		10.5			937,119		10.2			933,225		10.1			923,442		10.0			896,252		9.7
Multi-family residential		751,607		8.1			605,817		6.6			603,395		6.5			592,473		6.4			432,209		4.6
Consumer		8,882		0.1			10,149		0.1			9,845		0.1			11,189		0.1			8,316		0.1
Total LHI	$	9,256,482		100	%	$	9,215,329		100	%	$	9,247,585		100	%	$	9,269,884		100	%	$	9,252,670		100	%

MW		449,531					377,796					390,767					436,255					437,501

Total LHI¹	$	9,706,013				$	9,593,125				$	9,638,352				$	9,706,139				$	9,690,171

Total LHFS		64,762					79,072					41,313					29,876					42,816

Total Loans	$	9,770,775				$	9,672,197				$	9,679,665				$	9,736,015				$	9,732,987

Deposits
Noninterest-bearing	$	2,349,211		22.1	%	$	2,218,036		21.5	%	$	2,363,340		23.2	%	$	2,234,109		24.2	%	$	2,212,389		24.5	%
Interest-bearing transaction		724,171		6.8			927,193		8.9			739,098		7.2			676,653		7.3			866,609		9.6
Money market		3,326,742		31.2			3,284,324		31.8			3,096,498		30.4			2,816,769		30.5			2,518,922		27.9
Savings		169,201		1.6			136,868		1.3			100,474		1.0			96,831		1.0			106,480		1.2
Certificates and other time deposits		3,486,805		32.7			3,191,737		30.9			3,403,427		33.4			2,928,949		31.7			2,896,870		32.0
Correspondent money market accounts		597,690		5.6			580,037		5.6			493,681		4.8			480,598		5.3			433,468		4.8
Total deposits	$	10,653,820		100	%	$	10,338,195		100	%	$	10,196,518		100	%	$	9,233,909		100	%	$	9,034,738		100	%

Total Loans to Deposits Ratio		91.7	%				93.6	%				94.9	%				105.4	%				107.7	%

LHI to Deposit Ratio, excluding MW Loans		86.9	%				89.1	%				90.7	%				100.4	%				102.4	%

¹ Total LHI does not include deferred fees of $6.9 million, $8.8 million, $10.1 million, $12.7 million and $15.5 million at March 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023 and March 31, 2023, respectively.

VERITEX HOLDINGS, INC. AND SUBSIDIARIES

Financial Highlights

(Unaudited)

Asset Quality

	For the Quarter Ended
	Mar 31, 2024			Dec 31, 2023			Sep 30, 2023			Jun 30, 2023			Mar 31, 2023
	(In thousands, except percentages)
NPAs:
Nonaccrual loans	$	75,721		$	79,133		$	65,676		$	54,055		$	31,452
Nonaccrual PCD loans¹		9,419			13,715			13,718			13,721			12,784
Accruing loans 90 or more days past due²		220			2,975			474			528			296
Total nonperforming loans held for investment ("NPLs")		85,360			95,823			79,868			68,304			44,532
Other real estate owned		18,445			—			—			—			—
Total NPAs	$	103,805		$	95,823		$	79,868		$	68,304		$	44,532

Charge-offs:
1-4 family residential	$	—		$	(21	)	$	—		$	—		$	—
Multifamily					(192	)		—			—			—
OOCRE		(120	)		(364	)		(375	)		—			(116	)
NOOCRE		(4,293	)		(5,434	)		—			(8,215	)		—
C&I		(946	)		(3,893	)		(1,929	)		(3,540	)		(1,051	)
Consumer		(71	)		(33	)		(49	)		(92	)		(62	)
Total charge-offs		(5,430	)		(9,937	)		(2,353	)		(11,847	)		(1,229	)

Recoveries:
1-4 family residential		1			1			—			1			1
NOOCRE		—			—			200			150			—
C&I		96			387			308			106			364
Consumer		49			34			14			46			6
Total recoveries		146			422			522			303			371

Net charge-offs	$	(5,284	)	$	(9,515	)	$	(1,831	)	$	(11,544	)	$	(858	)

Provision for credit losses	$	7,500		$	9,500		$	8,627		$	15,000		$	9,385

ACL	$	112,032		$	109,816		$	109,831		$	102,150		$	98,694

Asset Quality Ratios:
NPAs to total assets		0.82	%		0.77	%		0.65	%		0.55	%		0.35	%
NPAs to total loans and OREO		1.06			0.99			0.83			0.70			0.46
NPLs to total LHI		0.88			1.00			0.83			0.70			0.46
NPLs, excluding nonaccrual PCD loans, to total LHI		0.78			0.86			0.69			0.56			0.33
ACL to total LHI		1.15			1.14			1.14			1.05			1.02
Net charge-offs to average loans outstanding³		0.22			0.40			0.08			0.48			0.04

¹Nonaccrual PCD loans consist of PCD loans that transitioned upon adoption of ASC 326 Financial Instruments - Credit Losses and were accounted for on a pooled basis that have subsequently been placed on nonaccrual status.

²Accruing loans greater than 90 days past due exclude purchase credit deteriorated loans greater than 90 days past due that are accounted for on a pooled basis.

³Annualized ratio for quarterly metrics.

VERITEX HOLDINGS, INC. AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures

(Unaudited)

We identify certain financial measures discussed in this earnings release as being "non-GAAP financial measures." In accordance with SEC rules, we classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP, in our statements of income, balance sheets or statements of cash flows. Non-GAAP financial measures do not include operating and other statistical measures or ratios calculated using exclusively either one or both of (i) financial measures calculated in accordance with GAAP and (ii) operating measures or other measures that are not non-GAAP financial measures.

The non-GAAP financial measures that we present in this earnings release should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which we calculate the non-GAAP financial measures that we present in this earnings release may differ from that of other companies reporting measures with similar names. You should understand how such other financial institutions calculate their financial measures that appear to be similar or have similar names to the non-GAAP financial measures we have discussed in this earnings release when comparing such non-GAAP financial measures.

Tangible Book Value Per Common Share. Tangible book value is a non-GAAP measure generally used by financial analysts and investment bankers to evaluate financial institutions. We calculate: (a) tangible common equity as total stockholders' equity less goodwill and core deposit intangibles, net of accumulated amortization; and (b) tangible book value per common share as tangible common equity (as described in clause (a)) divided by number of common shares outstanding. For tangible book value per common share, the most directly comparable financial measure calculated in accordance with GAAP is book value per common share.

We believe that this measure is important to many investors in the marketplace who are interested in changes from period to period in book value per common share exclusive of changes in core deposit intangibles. Goodwill and other intangible assets have the effect of increasing total book value while not increasing our tangible book value.

The following table reconciles, as of the dates set forth below, total stockholders' equity to tangible common equity and presents our tangible book value per common share compared with our book value per common share:

	As of
	Mar 31, 2024			Dec 31, 2023			Sep 30, 2023			Jun 30, 2023			Mar 31, 2023
	(Dollars in thousands, except per share data)
Tangible Common Equity
Total stockholders' equity	$	1,538,515		$	1,531,323		$	1,491,166		$	1,491,280		$	1,493,737
Adjustments:
Goodwill		(404,452	)		(404,452	)		(404,452	)		(404,452	)		(404,452	)
Core deposit intangibles		(26,057	)		(28,495	)		(30,933	)		(33,371	)		(35,808	)
Tangible common equity	$	1,108,006		$	1,098,376		$	1,055,781		$	1,053,457		$	1,053,477
Common shares outstanding		54,496			54,338			54,305			54,261			54,229

Book value per common share	$	28.23		$	28.18		$	27.46		$	27.48		$	27.54
Tangible book value per common share	$	20.33		$	20.21		$	19.44		$	19.41		$	19.43

VERITEX HOLDINGS, INC. AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures

(Unaudited)

Tangible Common Equity to Tangible Assets. Tangible common equity to tangible assets is a non-GAAP measure generally used by financial analysts and investment bankers to evaluate financial institutions. We calculate: (a) tangible common equity as total stockholders' equity, less goodwill and core deposit intangibles, net of accumulated amortization; (b) tangible assets as total assets less goodwill and core deposit intangibles, net of accumulated amortization; and (c) tangible common equity to tangible assets as tangible common equity (as described in clause (a)) divided by tangible assets (as described in clause (b)). For tangible common equity to tangible assets, the most directly comparable financial measure calculated in accordance with GAAP is total stockholders' equity to total assets.

We believe that this measure is important to many investors in the marketplace who are interested in the relative changes from period to period in common equity and total assets, in each case, exclusive of changes in core deposit intangibles. Goodwill and other intangible assets have the effect of increasing both total stockholders' equity and assets while not increasing our tangible common equity or tangible assets.

The following table reconciles, as of the dates set forth below, total stockholders' equity to tangible common equity and total assets to tangible assets and presents our tangible common equity to tangible assets:

	As of
	Mar 31, 2024			Dec 31, 2023			Sep 30, 2023			Jun 30, 2023			Mar 31, 2023
	(Dollars in thousands)
Tangible Common Equity
Total stockholders' equity	$	1,538,515		$	1,531,323		$	1,491,166		$	1,491,280		$	1,493,737
Adjustments:
Goodwill		(404,452	)		(404,452	)		(404,452	)		(404,452	)		(404,452	)
Core deposit intangibles		(26,057	)		(28,495	)		(30,933	)		(33,371	)		(35,808	)
Tangible common equity	$	1,108,006		$	1,098,376		$	1,055,781		$	1,053,457		$	1,053,477
Tangible Assets
Total assets	$	12,708,396		$	12,394,337		$	12,346,331		$	12,470,368		$	12,609,487
Adjustments:
Goodwill		(404,452	)		(404,452	)		(404,452	)		(404,452	)		(404,452	)
Core deposit intangibles		(26,057	)		(28,495	)		(30,933	)		(33,371	)		(35,808	)
Tangible Assets	$	12,277,887		$	11,961,390		$	11,910,946		$	12,032,545		$	12,169,227
Tangible Common Equity to Tangible Assets		9.02	%		9.18	%		8.86	%		8.76	%		8.66	%

VERITEX HOLDINGS, INC. AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures

(Unaudited)

Return on Average Tangible Common Equity. Return on average tangible common equity is a non-GAAP measure generally used by financial analysts and investment bankers to evaluate financial institutions. We calculate: (a) net income available for common stockholders adjusted for amortization of core deposit intangibles (which we refer to as "return") as net income, plus amortization of core deposit intangibles, less tax benefit at the statutory rate; (b) average tangible common equity as total average stockholders' equity less average goodwill and average core deposit intangibles, net of accumulated amortization; and (c) return (as described in clause (a)) divided by average tangible common equity (as described in clause (b)). For return on average tangible common equity, the most directly comparable financial measure calculated in accordance with GAAP is return on average equity.

We believe that this measure is important to many investors in the marketplace who are interested in the return on common equity, exclusive of the impact of core deposit intangibles. Goodwill and core deposit intangibles have the effect of increasing total stockholders' equity while not increasing our tangible common equity. This measure is particularly relevant to acquisitive institutions that may have higher balances in goodwill and core deposit intangibles than non-acquisitive institutions.

The following table reconciles, as of the dates set forth below, average tangible common equity to average common equity and net income available for common stockholders adjusted for amortization of core deposit intangibles, net of taxes to net income and presents our return on average tangible common equity:

	For the Quarter Ended
	Mar 31, 2024			Dec 31, 2023			Sep 30, 2023			Jun 30, 2023			Mar 31, 2023
	(Dollars in thousands)
Net income available for common stockholders adjusted for amortization of core deposit intangibles
Net income	$	24,156		$	3,499		$	32,621		$	33,730		$	38,411
Adjustments:
Plus: Amortization of core deposit intangibles		2,438			2,438			2,438			2,438			2,438
Less: Tax benefit at the statutory rate		512			512			512			512			512
Net income available for common stockholders adjusted for amortization of core deposit intangibles	$	26,082		$	5,425		$	34,547		$	35,656		$	40,337

Average Tangible Common Equity
Total average stockholders' equity	$	1,533,868		$	1,510,286		$	1,508,170		$	1,510,625		$	1,476,576
Adjustments:
Average goodwill		(404,452	)		(404,452	)		(404,452	)		(404,452	)		(404,452	)
Average core deposit intangibles		(27,656	)		(30,093	)		(32,540	)		(34,969	)		(37,361	)
Average tangible common equity	$	1,101,760		$	1,075,741		$	1,071,178		$	1,071,204		$	1,034,763
Return on Average Tangible Common Equity (Annualized)		9.52	%		2.00	%		12.80	%		13.35	%		15.81	%

VERITEX HOLDINGS, INC. AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures

(Unaudited)

Operating Earnings, Pre-tax, Pre-provision Operating Earnings and performance metrics calculated using Operating Earnings and Pre-tax, Pre-provision Operating Earnings, including Diluted Operating Earnings per Share, Operating Return on Average Assets, Pre-tax, Pre-Provision Operating Return on Average Assets, Pre-tax, Pre-Provision Operating Return on Average Loans, Operating Return on Average Tangible Common Equity and Operating Efficiency Ratio. Operating earnings, pre-tax, pre-provision operating earnings and the performance metrics calculated using these metrics, listed below, are non-GAAP measures used by management to evaluate the Company's financial performance. We calculate (a) operating earnings as net income plus severance payments, plus loss on sale of debt securities AFS, net, plus M&A expenses less tax impact of adjustments, plus nonrecurring tax adjustments. We calculate (b) diluted operating earnings per share as operating earnings as described in clause (a) divided by weighted average diluted shares outstanding. We calculate (c) pre-tax, pre-provision operating earnings as operating earnings as described in clause (a) plus provision for income taxes, plus provision (benefit) for credit losses and unfunded commitments. We calculate (d) pre-tax, pre-provision operating return on average assets as pre-tax, pre-provision operating earnings as described in clause (a) divided by total average assets. We calculate (e) operating return on average assets as operating earnings as described in clause (a) divided by total average assets. We calculate (f) operating return on average tangible common equity as operating earnings as described in clause (a), adjusted for the amortization of intangibles and tax benefit at the statutory rate, divided by total average tangible common equity (average stockholders' equity less average goodwill and average core deposit intangibles, net of accumulated amortization). We calculate (g) operating efficiency ratio as noninterest expense plus adjustments to operating noninterest expense divided by noninterest income plus adjustments to operating noninterest income, plus net interest income.

We believe that these measures and the operating metrics calculated utilizing these measures are important to management and many investors in the marketplace who are interested in understanding the ongoing operating performance of the Company and provide meaningful comparisons to its peers.

The following tables reconcile, as of the dates set forth below, operating net income and pre-tax, pre-provision operating earnings and related metrics:

	For the Quarter Ended
	Mar 31, 2024		Dec 31, 2023		Sep 30, 2023		Jun 30, 2023		Mar 31, 2023
	(Dollars in thousands, except per share data)
Operating Earnings
Net income	$	24,156	$	3,499	$	32,621	$	33,730	$	38,411
Plus: Severance payments¹		—		—		—		1,194		835
Plus: Loss on sale of AFS securities, net		6,304		—		—		—		5,321
Plus: Equity method investment write-down		—		29,417		—		—		—
Plus: FDIC special assessment		—		768		—		—		—
Operating pre-tax income		30,460		33,684		32,621		34,924		44,567
Less: Tax impact of adjustments		1,323		2,059		—		251		1,293
Operating earnings	$	29,137	$	31,625	$	32,621	$	34,673	$	43,274

Weighted average diluted shares outstanding		54,842		54,691		54,597		54,486		54,606
Diluted EPS	$	0.44	$	0.06	$	0.60	$	0.62	$	0.70
Diluted operating EPS	$	0.53	$	0.58	$	0.60	$	0.64	$	0.79

¹ Severance payments relate to certain restructurings made during the periods disclosed.

	For the Quarter Ended
	Mar 31, 2024			Dec 31, 2023			Sep 30, 2023			Jun 30, 2023			Mar 31, 2023
	(Dollars in thousands)
Pre-Tax, Pre-Provision Operating Earnings
Net income	$	24,156		$	3,499		$	32,621		$	33,730		$	38,411
Plus: Provision for income taxes		7,237			6,004			9,282			9,725			11,012
Plus: Provision for credit losses and unfunded commitments		5,959			8,000			7,718			13,871			10,882
Plus: Severance payments		—			—			—			1,194			756
Plus: Loss on sale of AFS securities, net		6,304			—			—			—			5,321
Plus: Equity method investment write-down		—			29,417			—			—			—
Plus: FDIC special assessment		—			768			—			—			—
Pre-tax, pre-provision operating earnings	$	43,656		$	47,688		$	49,621		$	58,520		$	66,382

Average total assets	$	12,336,042		$	12,306,634		$	12,259,062		$	12,350,223		$	12,214,313
Pre-tax, pre-provision operating return on average assets¹		1.42	%		1.54	%		1.61	%		1.90	%		2.20	%

Average loans	$	9,563,372		$	9,581,784		$	9,625,005		$	9,657,313		$	9,501,309
Pre-tax, pre-provision operating return on average loans¹		1.84	%		1.97	%		2.05	%		2.43	%		2.83	%

Average total assets	$	12,336,042		$	12,306,634		$	12,259,062		$	12,350,223		$	12,214,313
Return on average assets¹		0.79	%		0.11	%		1.06