DALLAS, Oct. 22, 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 September 30, 2024.

"We are pleased to announce both our third quarter results and updates on our balance sheet transformation over the past 2 years," said C. Malcolm Holland, III, the Company's Chairman and Chief Executive Officer. "My team has remained focused on growing granular, attractively priced deposits, increasing capital, managing concentrations and reducing credit risk exposure all while continuing to grow a fortress balance sheet through full relationship banking. I could not be more proud of our team of nearly 900 employees who embraced the challenges we set forth back in 2022 and each day going forward."

	Quarter to Date						Year to Date
*Financial Highlights*	Q3 2024			Q2 2024			Q3 2024			Q3 2023
	(Dollars in thousands, except per share data) (unaudited)
GAAP
Net income	$	31,001		$	27,202		$	82,359		$	104,762
Diluted EPS		0.56			0.50			1.50			1.92
Book value per common share		29.53			28.49			29.53			27.46
Return on average assets¹		0.96	%		0.87	%		0.87	%		1.14	%
Return on average equity¹		7.79			7.10			7.08			9.35
Net interest margin		3.30			3.29			3.28			3.55
Efficiency ratio		61.94			59.11			61.15			50.88
Non-GAAP²
Operating earnings	$	32,181		$	28,310		$	89,628		$	110,489
Diluted operating EPS		0.59			0.52			1.63			2.02
Tangible book value per common share		21.72			20.62			21.72			19.44
Pre-tax, pre-provision operating earnings		44,555			44,420			132,631			174,523
Pre-tax, pre-provision operating return on average assets¹		1.38	%		1.42	%		1.41	%		1.90	%
Pre-tax, pre-provision operating return on average loans¹		1.83			1.83			1.83			2.43
Operating return on average assets¹		1.00			0.91			0.95			1.20
Return on average tangible common equity¹		11.33			10.54			10.48			13.95
Operating return on average tangible common equity¹		11.74			10.94			11.34			14.68
Operating efficiency ratio		60.63			58.41			59.28			49.53

¹Annualized 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 Third Quarter Financial, Credit and Company Highlights

Return on average assets ("ROAA") increased 9 bps compared to June 30, 2024;
7.2% linked quarter revenue growth;
Nonperforming assets ("NPAs") decreased 13 bps from the prior quarter to 0.52% of total assets;
Total deposits grew $311.2 million, or 11.60% annualized, compared to June 30, 2024;
Common equity tier 1 capital grew 37 bps from the prior quarter to 10.86%;
Net interest margin ("NIM") expanded to 3.30%;
Loan to deposit ratio, excluding mortgage warehouse loans, decreased to 81.9% as of September 30, 2024, compared to 85.9% as of June 30, 2024 and 90.7% as of September 30, 2023;
Tangible book value per common share increased to $21.72;
Allowance for credit losses ("ACL") to total loans held for investment ("LHI") increased to 1.21%, compared to 1.16% as of June 30, 2024 and 1.14% as of September 30, 2023; and
Declared quarterly cash dividend of $0.20 per share of outstanding common stock payable on November 22, 2024.

Results of Operations for the Three Months Ended September 30, 2024

Net Interest Income

For the three months ended September 30, 2024, net interest income before provision for credit losses was $100.1 million and NIM was 3.30% compared to $96.2 million and 3.29%, respectively, for the three months ended June 30, 2024. The approximately $3.8 million increase, or 4.0%, in net interest income before provision for credit losses was primarily due to a $4.8 million increase in interest income on deposits in financial institutions and fed funds sold, a $1.4 million decrease in interest expense on advances from the Federal Home Loan Bank ("FHLB"), a $422 thousand increase in interest income on debt securities and a $282 thousand increase in interest income on loans. The increase was partially offset by a $1.6 million increase in interest expense on transactions and savings deposits and a $1.4 million increase in interest expense on certificates and other time deposits, during the three months ended September 30, 2024. NIM increased 1 basis point compared to the three months ended June 30, 2024, primarily due to a decrease in funding costs on deposits during the three months ended September 30, 2024, partially offset by a decrease in loan yields and average balances.

Compared to the three months ended September 30, 2023, net interest income before provision for credit losses for the three months ended September 30, 2024 increased by $701 thousand, or 0.7%. The increase was primarily due to a $8.5 million decrease in interest expense on advances from the FHLB, a $5.4 million increase in interest income on deposits in financial institutions and fed funds sold and a $4.9 million increase in interest income on debt securities. The increase was partially offset by a $10.1 million increase in interest expense on certificates and other time deposits, a $7.3 million increase in interest expense on transaction and savings deposits and a $690 thousand decrease in interest income on equity securities and other investments. Compared to the three months ended September 30, 2023, NIM decreased 16 bps from 3.46% for the three months ended September 30, 2024. The decrease was primarily due to the increase in funding costs on deposits during the three months ended September 30, 2024, partially offset by an increase in loan yields and an increase in average balances and yields on debt securities.

Noninterest Income

Noninterest income for the three months ended September 30, 2024 was $13.1 million, an increase of $2.5 million, or 23.9%, compared to the three months ended June 30, 2024. The increase was primarily due to a $1.6 million increase in other income, driven by a $1.2 million increase in other real estate owned ("OREO") income, a $1.1 million increase in loan fees and a $468 thousand increase in service charges and fees on deposits for the three months ended September 30, 2024. The increase was partially offset by a $540 thousand decrease in government guaranteed loan income.

Compared to the three months ended September 30, 2023, noninterest income for the three months ended September 30, 2024 increased by $3.4 million, or 35.5%. The increase was primarily due to a $2.2 million increase in other income, driven by a $1.2 million increase in OREO income, a $1.7 million increase in loan fees and a $283 thousand increase in service charges and fees on deposit accounts. The increase was partially offset by a $1.0 million decrease in government guaranteed loan income, primarily driven by a decrease in the Company's USDA sales.

Noninterest Expense

Noninterest expense was $70.1 million for the three months ended September 30, 2024, compared to $63.1 million for the three months ended June 30, 2024, an increase of $7.0 million, or 11.0%. The increase was primarily due to a $4.6 million increase in salaries and employee benefits primarily due to an increase in incentive accruals to 80% of target payout, a $1.9 million increase in other noninterest expense primarily driven by OREO expenses, a $805 thousand increase in marketing expenses and a $204 thousand increase in occupancy and equipment expense. The increase is partially offset by a decrease of $714 thousand in professional and regulatory fees compared to the three months ended June 30, 2024.

Compared to the three months ended September 30, 2023, noninterest expense for the three months ended September 30, 2024 increased by $10.7 million, or 18.0%. The increase was primarily due to a $6.4 million increase in salaries and employee benefits primarily due to the increase in incentive accruals aforementioned, a $5.6 million increase in other noninterest expense, a $727 thousand increase data processing and software expense, and a $428 thousand increase in marketing expenses. The increase was partially offset by a $2.4 million decrease in professional and regulatory fees compared to the three months ended September 30, 2023.

Financial Condition

Total LHI was $9.03 billion at September 30, 2024, a decrease of $180.5 million compared to June 30, 2024.

Total deposits were $11.04 billion at September 30, 2024, an increase of $311.2 million, or 11.6% linked quarter annualized. The increase was primarily the result of an increase of $227.2 million in noninterest bearing deposits and an increase of $225.3 million in interest-bearing transaction and savings deposits. The increase was partially offset by a decrease of $118.7 million in certificates and other time deposits and a decrease of $22.6 million in correspondent money market accounts.

Credit Quality

NPAs totaled $67.3 million, or 0.52% of total assets, of which $58.3 million represents LHI and $9.0 million represents OREO at September 30, 2024, compared to $83.0 million, or 0.65% of total assets, at June 30, 2024. The Company had net charge-offs of $269 thousand for the three months ended September 30, 2024. Annualized net charge-offs to average loans outstanding were 1bp, for the three months ended September 30, 2024, compared to 28 bps and 8 bps for the three months ended June 30, 2024 and September 30, 2023, respectively.

ACL as a percentage of LHI was 1.21%, 1.16% and 1.14% at September 30, 2024, June 30, 2024 and September 30, 2023, respectively. The Company recorded a provision for credit losses of $4.0 million, $8.3 million and $8.6 million for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively. The recorded provision for credit losses for the three months ended September 30, 2024, compared to the three months ended June 30, 2024, was primarily attributable to an increase in general reserves as a result of changes in economic factors which now represents 97% of the total ACL as a percentage of LHI. The balance for unfunded commitments for the three months ended September 30, 2024 remained relatively stable compared to the three months ended June 30, 2024 and recorded no benefit or provision for unfunded commitments for the three months ended September 30, 2024. The Company recorded no benefit or provision for unfunded commitments for the three months ended June 30, 2024 and a $909 thousand benefit for unfunded commitments for the three months ended September 30, 2023.

Income Tax

Income tax expense for the three months ended September 30, 2024 totaled $8.1 million, a decrease of $154 thousand, or 1.9%, compared to the three months ended June 30, 2024. The Company's effective tax rate was approximately 20.6% for the three months ended September 30, 2024. The decrease was primarily due a $941 thousand change in the Company's valuation allowance slightly offset by a return to provision of $224 thousand and a net discrete tax expense of $501 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, October 22, 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 November 22, 2024 to stockholders of record as of the close of business on November 8, 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 of the Company; 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, October 23, 2024, at 8:30 a.m. Central Time. Participants may pre-register for the call by visiting http://edge.media-server.com/mmc/p/99msavdf 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/BI8a41df4f3f824d2888f9cf9a3e02c9b8. 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.

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															For the Nine Months Ended
	Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Sep 30, 2023			Sep 30, 2024			Sep 30, 2023
	(Dollars and shares in thousands, except per share data)
Per Share Data (Common Stock):
Basic EPS	$	0.57		$	0.50		$	0.44		$	0.06		$	0.60		$	1.51		$	1.93
Diluted EPS		0.56			0.50			0.44			0.06			0.60			1.50			1.92
Book value per common share		29.53			28.49			28.23			28.18			27.46			29.53			27.46
Tangible book value per common share¹		21.72			20.62			20.33			20.21			19.44			21.72			19.44
Dividends paid per common share outstanding²		0.20			0.20			0.20			0.20			0.20			0.60			0.60

Common Stock Data:
Shares outstanding at period end		54,446			54,350			54,496			54,338			54,305			54,446			54,305
Weighted average basic shares outstanding for the period		54,409			54,457			54,444			54,327			54,300			54,437			54,233
Weighted average diluted shares outstanding for the period		54,932			54,823			54,842			54,691			54,597			54,866			54,563

Summary of Credit Ratios:
ACL to total LHI		1.21	%		1.16	%		1.15	%		1.14	%		1.14	%		1.21	%		1.14	%
NPAs to total assets		0.52			0.65			0.82			0.77			0.65			0.52			0.65
NPAs to total loans and OREO		0.70			0.85			1.06			0.99			0.83			0.70			0.83
Net charge-offs to average loans outstanding³		0.01			0.28			0.22			0.39			0.08			0.17			0.20

Summary Performance Ratios:
Return on average assets³		0.96	%		0.87	%		0.79	%		0.11	%		1.06	%		0.87	%		1.14	%
Return on average equity³		7.79			7.10			6.33			0.92			8.58			7.08			9.35
Return on average tangible common equity^1,3		11.33			10.54			9.52			2.00			12.80			10.48			13.95
Efficiency ratio		61.94			59.11			62.45			77.49			54.49			61.15			50.88
Net interest margin		3.30			3.29			3.24			3.31			3.46			3.28			3.55

Selected Performance Metrics - Operating:
Diluted operating EPS¹	$	0.59		$	0.52		$	0.53		$	0.58		$	0.60		$	1.63		$	2.02
Pre-tax, pre-provision operating return on average assets^1,3		1.38	%		1.42	%		1.42	%		1.54	%		1.61	%		1.41	%		1.90	%
Pre-tax, pre-provision operating return on average loans^1,3		1.83			1.83			1.84			1.97			2.05			1.83			2.43
Operating return on average assets^1,3		1.00			0.91			0.95			1.02			1.06			0.95			1.20
Operating return on average tangible common equity^1,3		11.74			10.94			11.34			12.37			12.80			11.34			14.68
Operating efficiency ratio¹		60.63			58.41			58.73			55.50			54.49			59.28			49.53

Veritex Holdings, Inc. Capital Ratios:
Average stockholders' equity to average total assets		12.31	%		12.26	%		12.43	%		12.27	%		12.30	%		12.33	%		12.21	%
Tangible common equity to tangible assets¹		9.37			9.14			9.02			9.18			8.86			9.37			8.86
Tier 1 capital to average assets (leverage)		10.06			10.06			10.12			10.03			10.10			10.06			10.10
Common equity tier 1 capital		10.86			10.49			10.37			10.29			10.11			10.86			10.11
Tier 1 capital to risk-weighted assets		11.13			10.75			10.63			10.56			10.37			11.13			10.37
Total capital to risk-weighted assets		13.91			13.45			13.33			13.18			12.95			13.91			12.95
Risk weighted assets	$	11,290,800		$	11,450,997		$	11,407,446		$	11,387,825		$	11,617,229		$	11,290,800		$	11,617,229

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.

³Annualized ratio for quarterly metrics.

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

	Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Sep 30, 2023
	(unaudited)			(unaudited)			(unaudited)						(unaudited)
ASSETS
Cash and cash equivalents	$	1,100,790		$	651,837		$	740,769		$	629,063		$	713,408
Debt securities, net		1,423,610			1,349,354			1,344,930			1,257,042			1,060,629
Other investments		71,257			75,885			76,788			76,238			80,869

Loans held for sale ("LHFS")		48,496			57,046			64,762			79,072			41,313
LHI, mortgage warehouse ("MW")		630,650			568,047			449,531			377,796			390,767
LHI, excluding MW		9,028,575			9,209,094			9,249,551			9,206,544			9,237,447
Total loans		9,707,721			9,834,187			9,763,844			9,663,412			9,669,527
ACL		(117,162	)		(113,431	)		(112,032	)		(109,816	)		(109,831	)
Bank-owned life insurance		84,776			84,233			85,359			84,833			84,867
Bank premises, furniture and equipment, net		114,202			105,222			105,299			105,727			106,118
Other real estate owned ("OREO")		9,034			24,256			18,445			—			—
Intangible assets, net of accumulated amortization		32,825			35,817			38,679			41,753			44,294
Goodwill		404,452			404,452			404,452			404,452			404,452
Other assets		211,471			232,518			241,863			241,633			291,998
Total assets	$	13,042,976		$	12,684,330		$	12,708,396		$	12,394,337		$	12,346,331
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest-bearing deposits	$	2,643,894		$	2,416,727		$	2,349,211		$	2,218,036		$	2,363,340
Interest-bearing transaction and savings deposits		4,204,708			3,979,454			4,220,114			4,348,385			3,936,070
Certificates and other time deposits		3,625,920			3,744,596			3,486,805			3,191,737			3,403,427
Correspondent money market deposits		561,489			584,067			597,690			580,037			493,681
Total deposits		11,036,011			10,724,844			10,653,820			10,338,195			10,196,518
Accounts payable and other liabilities		168,415			180,585			186,027			195,036			229,116
Advances from FHLB		—			—			100,000			100,000			200,000
Subordinated debentures and subordinated notes		230,536			230,285			230,034			229,783			229,531
Total liabilities		11,434,962			11,135,714			11,169,881			10,863,014			10,855,165
Commitments and contingencies
Stockholders' equity:
Common stock		613			612			611			610			609
Additional paid-in capital		1,324,929			1,321,995			1,319,144			1,317,516			1,314,459
Retained earnings		493,921			473,801			457,499			444,242			451,513
Accumulated other comprehensive loss		(40,330	)		(76,713	)		(71,157	)		(63,463	)		(107,833	)
Treasury stock		(171,119	)		(171,079	)		(167,582	)		(167,582	)		(167,582	)
Total stockholders' equity		1,608,014			1,548,616			1,538,515			1,531,323			1,491,166
Total liabilities and stockholders' equity	$	13,042,976		$	12,684,330		$	12,708,396		$	12,394,337		$	12,346,331

VERITEX HOLDINGS, INC. AND SUBSIDIARIES Financial Highlights (In thousands, except per share data)

	For the Quarter Ended													For the Nine Months Ended
	Sep 30, 2024		Jun 30, 2024		Mar 31, 2024			Dec 31, 2023			Sep 30, 2023			Sep 30, 2024			Sep 30, 2023
	(unaudited)		(unaudited)		(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)
Interest income:
Loans, including fees	$	167,261	$	166,979	$	161,942		$	165,443		$	167,368		$	496,182		$	482,802
Debt securities		15,830		15,408		13,695			12,282			10,928			44,933			32,082
Deposits in financial institutions and Fed Funds sold		12,571		7,722		8,050			8,162			7,128			28,343			20,169
Equity securities and other investments		1,001		1,138		900			1,717			1,691			3,039			4,217
Total interest income		196,663		191,247		184,587			187,604			187,115			572,497			539,270
Interest expense:
Transaction and savings deposits		47,208		45,619		46,784			46,225			39,936			139,611			102,750
Certificates and other time deposits		46,230		44,811		40,492			40,165			36,177			131,533			85,244
Advances from FHLB		47		1,468		1,391			2,581			8,523			2,906			38,443
Subordinated debentures and subordinated notes		3,116		3,113		3,114			3,100			3,118			9,343			9,252
Total interest expense		96,601		95,011		91,781			92,071			87,754			283,393			235,689
Net interest income		100,062		96,236		92,806			95,533			99,361			289,104			303,581
Provision for credit losses		4,000		8,250		7,500			9,500			8,627			19,750			33,012
(Benefit) provision for unfunded commitments		—		—		(1,541	)		(1,500	)		(909	)		(1,541	)		(541	)
Net interest income after provisions		96,062		87,986		86,847			87,533			91,643			270,895			271,110
Noninterest income:
Service charges and fees on deposit accounts		5,442		4,974		4,896			4,800			5,159			15,312			15,448
Loan fees		3,278		2,207		2,510			1,200			1,564			7,995			5,148
Loss on sales of debt securities		—		—		(6,304	)		—			—			(6,304	)		(5,321	)
Government guaranteed loan income, net		780		1,320		2,614			4,378			1,772			4,714			15,604
Equity method investment (loss) income		—		—		—			(29,417	)		(136	)		—			(1,172	)
Customer swap income		271		326		449			258			202			1,046			1,380
Other income		3,335		1,751		2,497			989			1,113			7,583			5,810
Total noninterest income (loss)		13,106		10,578		6,662			(17,792	)		9,674			30,346			36,897
Noninterest expense:
Salaries and employee benefits		37,370		32,790		33,365			30,606			30,949			103,525			91,464
Occupancy and equipment		4,789		4,585		4,677			4,670			4,881			14,051			14,681
Professional and regulatory fees		4,903		5,617		6,053			7,626			7,283			16,573			18,540
Data processing and software expense		5,268		5,097		4,856			4,569			4,541			15,221			13,970
Marketing		2,781		1,976		1,546			1,945			2,353			6,303			6,759
Amortization of intangibles		2,438		2,438		2,438			2,438			2,438			7,314			7,401
Telephone and communications		335		365		261			356			362			961			1,195
Other		12,216		10,273		8,920			8,028			6,607			31,409			19,216
Total noninterest expense		70,100		63,141		62,116			60,238			59,414			195,357			173,226
Income before income tax expense		39,068		35,423		31,393			9,503			41,903			105,884			134,781
Income tax expense		8,067		8,221		7,237			6,004			9,282			23,525			30,019
Net income	$	31,001	$	27,202	$	24,156		$	3,499		$	32,621		$	82,359		$	104,762

Basic EPS	$	0.57	$	0.50	$	0.44		$	0.06		$	0.60		$	1.51		$	1.93
Diluted EPS	$	0.56	$	0.50	$	0.44		$	0.06		$	0.60		$	1.50		$	1.92
Weighted average basic shares outstanding		54,409		54,457		54,444			54,327			54,300			54,437			54,233
Weighted average diluted shares outstanding		54,932		54,823		54,842			54,691			54,597			54,866			54,563

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

	For the Quarter Ended
	September 30, 2024							June 30, 2024							September 30, 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	$	9,184,182		$	159,163	6.89	%	$	9,344,482		$	160,323	6.90	%	$	9,267,366		$	161,615	6.92	%
LHI, MW		477,592			8,098	6.75			420,946			6,656	6.36			357,639			5,753	6.38
Debt securities		1,384,835			15,830	4.55			1,352,293			15,408	4.58			1,121,716			10,928	3.87
Interest-bearing deposits in other banks		924,685			12,571	5.41			560,586			7,722	5.54			520,785			7,128	5.43
Equity securities and other investments		75,884			1,001	5.25			78,964			1,138	5.80			135,714			1,691	4.94
Total interest-earning assets		12,047,178			196,663	6.49			11,757,271			191,247	6.54			11,403,220			187,115	6.51
ACL		(115,510	)						(115,978	)						(105,320	)
Noninterest-earning assets		930,250							937,413							961,162
Total assets	$	12,861,918						$	12,578,706						$	12,259,062

Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Interest-bearing demand and savings deposits	$	4,700,196		$	47,208	4.00	%	$	4,570,329		$	45,619	4.01	%	$	4,168,876		$	39,936	3.80	%
Certificates and other time deposits		3,678,718			46,230	5.00			3,591,035			44,811	5.02			3,151,704			36,177	4.55
Advances from FHLB and Other		3,261			47	5.73			106,648			1,468	5.54			725,543			8,523	4.66
Subordinated debentures and subordinated notes		230,393			3,116	5.38			230,141			3,113	5.44			229,389			3,118	5.39
Total interest-bearing liabilities		8,612,568			96,601	4.46			8,498,153			95,011	4.50			8,275,512			87,754	4.21

Noninterest-bearing liabilities:
Noninterest-bearing deposits		2,486,676							2,346,908							2,272,207
Other liabilities		179,273							192,036							203,173
Total liabilities		11,278,517							11,037,097							10,750,892
Stockholders' equity		1,583,401							1,541,609							1,508,170
Total liabilities and stockholders' equity	$	12,861,918						$	12,578,706						$	12,259,062

Net interest rate spread²						2.03	%						2.04	%						2.30	%
Net interest income and margin³				$	100,062	3.30	%				$	96,236	3.29	%				$	99,361	3.46	%

¹ Includes average outstanding balances of LHFS of $54.3 million, $58.5 million and $28.3 million for the quarters ended September 30, 2024, June 30, 2024, and September 30, 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 (In thousands, except percentages)

	For the Nine Months Ended
	September 30, 2024							September 30, 2023
	Average Outstanding Balance			Interest Earned/ Interest Paid		Average Yield/ Rate		Average Outstanding Balance			Interest Earned/ Interest Paid		Average Yield/ Rate
Assets
Interest-earning assets:
Loans¹	$	9,270,510		$	477,071	6.87	%	$	9,231,814		$	467,101	6.76	%
LHI, MW		393,008			19,111	6.50			363,182			15,701	5.78
Debt securities		1,344,190			44,933	4.47			1,168,860			32,082	3.67
Interest-bearing deposits in other banks		692,434			28,343	5.47			527,805			20,169	5.11
Equity securities and other investments		77,035			3,039	5.27			132,895			4,217	4.24
Total interest-earning assets		11,777,177			572,497	6.49			11,424,556			539,270	6.31
ACL		(114,576	)						(100,228	)
Noninterest-earning assets		930,605							950,369
Total assets	$	12,593,206						$	12,274,697

Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Interest-bearing demand and savings deposits	$	4,636,889		$	139,611	4.02	%	$	4,079,436		$	102,750	3.37	%
Certificates and other time deposits		3,518,417			131,533	4.99			2,873,388			85,244	3.97
Advances from FHLB and Other		70,055			2,906	5.54			1,105,592			38,443	4.65
Subordinated debentures and subordinated notes		230,139			9,343	5.42			229,923			9,252	5.38
Total interest-bearing liabilities		8,455,500			283,393	4.48			8,288,339			235,689	3.80

Noninterest-bearing liabilities:
Noninterest-bearing deposits		2,396,629							2,305,745
Other liabilities		188,007							182,040
Total liabilities		11,040,136							10,776,124
Stockholders' equity		1,553,070							1,498,573
Total liabilities and stockholders' equity	$	12,593,206						$	12,274,697

Net interest rate spread²						2.01	%						2.51	%
Net interest income and margin³				$	289,104	3.28	%				$	303,581	3.55	%

¹ Includes average outstanding balances of LHFS of $55.5 million and $23.8 million for the nine months ended September 30, 2024 and 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
	Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Sep 30, 2023
Average yield on interest-earning assets:
Loans¹		6.89	%		6.90	%		6.83	%		6.88	%		6.92	%
LHI, MW		6.75			6.36			6.27			5.82			6.38
Total Loans		6.89			6.88			6.81			6.85			6.90
Debt securities		4.55			4.58			4.25			4.10			3.87
Interest-bearing deposits in other banks		5.41			5.54			5.54			5.51			5.43
Equity securities and other investments		5.25			5.80			4.75			8.28			4.94
Total interest-earning assets		6.49	%		6.54	%		6.44	%		6.51	%		6.51	%

Average rate on interest-bearing liabilities:
Interest-bearing demand and savings deposits		4.00	%		4.01	%		4.06	%		4.03	%		3.80	%
Certificates and other time deposits		5.00			5.02			4.96			4.85			4.55
Advances from FHLB		5.73			5.54			5.54			5.60			4.66
Subordinated debentures and subordinated notes		5.38			5.44			5.45			5.36			5.39
Total interest-bearing liabilities		4.46	%		4.50	%		4.47	%		4.43	%		4.21	%

Net interest rate spread²		2.03	%		2.04	%		1.97	%		2.08	%		2.30	%
Net interest margin³		3.30	%		3.29	%		3.24	%		3.31	%		3.46	%

¹Includes average outstanding balances of LHFS of $54.3 million, $58.5 million, $53.9 million, $31.2 million and $28.3 million for the three months ended September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 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										For the Nine Months Ended
	Sep 30, 2024		Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Sep 30, 2023		Sep 30, 2024		Sep 30, 2023
Average cost of interest-bearing deposits	4.44	%	4.46	%	4.43	%	4.38	%	4.12	%	4.44	%	3.62	%
Average costs of total deposits, including noninterest-bearing	3.42		3.46		3.42		3.37		3.15		3.43		2.03

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

LHI and Deposit Portfolio Composition

	Sep 30, 2024				Jun 30, 2024				Mar 31, 2024				Dec 31, 2023				Sep 30, 2023
	(Dollars in thousands)
LHI¹
Commercial and Industrial ("C&I")	$	2,728,544	30.2	%	$	2,798,260	30.4	%	$	2,785,987	30.1	%	$	2,752,063	29.9	%	$	2,841,024	30.7	%
Real Estate:
Owner occupied commercial ("OOCRE")		807,223	8.9			806,285	8.7			788,376	8.5			794,088	8.6			697,299	7.5
Non-owner occupied commercial ("NOOCRE")		2,338,094	25.9			2,369,848	25.7			2,352,993	25.5			2,350,725	25.5			2,398,060	26.1
Construction and land		1,436,540	15.8			1,536,580	16.7			1,568,257	16.9			1,734,254	18.8			1,705,053	18.4
Farmland		32,254	0.4			30,512	0.3			30,979	0.3			31,114	0.3			59,684	0.6
1-4 family residential		944,755	10.5			917,402	10.0			969,401	10.5			937,119	10.2			933,225	10.1
Multi-family residential		738,090	8.2			748,740	8.1			751,607	8.1			605,817	6.6			603,395	6.5
Consumer		11,292	0.1			9,245	0.1			8,882	0.1			10,149	0.1			9,845	0.1
Total LHI	$	9,036,792	100	%	$	9,216,872	100	%	$	9,256,482	100	%	$	9,215,329	100	%	$	9,247,585	100	%

MW		630,650				568,047				449,531				377,796				390,767

Total LHI¹	$	9,667,442			$	9,784,919			$	9,706,013			$	9,593,125			$	9,638,352

Total LHFS		48,496				57,046				64,762				79,072				41,313

Total Loans	$	9,715,938			$	9,841,965			$	9,770,775			$	9,672,197			$	9,679,665

Deposits
Noninterest-bearing	$	2,643,894	24.0	%	$	2,416,727	22.5	%	$	2,349,211	22.1	%	$	2,218,036	21.5	%	$	2,363,340	23.2	%
Interest-bearing transaction		421,059	3.8			523,272	4.9			724,171	6.8			927,193	8.9			739,098	7.2
Money market		3,462,709	31.4			3,268,286	30.5			3,326,742	31.2			3,284,324	31.8			3,096,498	30.4
Savings		320,940	2.9			187,896	1.8			169,201	1.6			136,868	1.3			100,474	1.0
Certificates and other time deposits		3,625,920	32.8			3,744,596	34.9

Veritex Holdings, Inc. Reports Third Quarter 2024 Operating Results