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EX-99.1 2 a2024q3-exhibit991.htm EX-99.1 Document

第99.1展示文本

VERITEX控股公司报告第三季度 2024年第三季度运营结果

达拉斯，德克萨斯州—2024年10月22日 ——veritex holdings，inc.（“veritex”，“公司”，“我们”或“我们”）（纳斯达克：vbt x），veritex社区银行的控股公司，今天宣布了截至季度的结果 2024年9月30日.

“我们很高兴宣布我们的第三季度业绩，并更新过去两年内我们资产负债表转型的进展”，公司董事长兼首席执行官C. Malcolm Holland III说。“我的团队一直专注于增长细分、价格合理的存款，增加资本，管理集中度，减少信贷风险敞口，同时通过全面的关系银行业务继续壮大资产负债表。我为我们近900名员工团队感到非常自豪，他们在2022年提出的挑战并且每天都在不断向前。”壮大细分、价格诱人的存款，增加资本，管理集中度和减少信贷风险敞口，同时继续通过全面的关系银行业务壮大资产负债表，我们团队的每个成员每天都在接受挑战。我对我们的团队由近900名员工组成感到非常自豪，并为他们在2022年提出的挑战以及每一天的努力感到骄傲。”团队近900名员工积极应对我们在2022年制定并日复一日地努力实现的挑战，其中包括增长细分、价格具有吸引力的存款、加大资本、管理集中度以及减少信贷风险敞口的措施。我们坚定地通过全面的关系银行业务壮大资产负债表，这令我感到格外自豪。”


	季度至今			本年度至今
财务亮点	Q3 2024			Q2 2024			Q3 2024			Q3 2023
	(金额以千元为单位，除每股数据外) (未经审计)
通用会计原则(GAAP)
净收入	$	31,001		$	27,202		$	82,359		$	104,762
摊薄后每股收益	0.56			0.50			1.50			1.92
每股普通股账面价值	29.53			28.49			29.53			27.46
平均资产回报率1	0.96		%	0.87		%	0.87		%	1.14		%
平均净资产回报率1	7.79			7.10			7.08			9.35
净利息收益率	3.30			3.29			3.28			3.55
效率比率	61.94			59.11			61.15			50.88
非通用会计原则2
营业利润	$	32,181		$	28,310		$	89,628		$	110,489
摊薄后营运每股收益	0.59			0.52			1.63			2.02
每股有形账面价值	21.72			20.62			21.72			19.44
税前、税前准备操作盈利	44,555			44,420			132,631			174,523
税前、税前准备操作平均资产回报1	1.38		%	1.42		%	1.41		%	1.90		%
税前、税前准备操作平均贷款回报1	1.83			1.83			1.83			2.43
操作平均资产回报1	1.00			0.91			0.95			1.20
平均有形普通股权益回报率1	11.33			10.54			10.48			13.95
操作平均有形公共股权回报1	11.74			10.94			11.34			14.68
操作效率比率	60.63			58.41			59.28			49.53

1 年化比率。

2 请参考“调解非通用会计原则财务指标”一节，以将这些非通用会计原则 (GAAP) 财务指标与其最直接可比的GAAP指标进行调解。

其他第三季度财务、信用和公司亮点

•平均资产回报率（“ROAA”）比上一年增加了9个基点 2024年6月30日；

•季度营业收入环比增长7.2%;

•不良资产（“NPAs”）较上一季减少了13个基点至 0.52% 资产总额。

•总存款增长 3.112亿美元，或年化11.60%相比之下,2024年6月30日;

•上一季度相比，一级资本比率增长了37个基点，达到10.86%;

•净利息收益率（“NIM”）扩大至 3.30%;

•截至2024年9月30日，抵押贷款仓库存款比率下降至81.9%，而2024年6月30日为85.9%，2023年9月30日为90.7%。

•每股有形账面价值增至21.72美元；

•信贷损失准备金（“ACL”）占持有至投资贷款（“LHI”）的比例提高至1.21%，相比2024年6月30日的1.16%和2023年9月30日的1.14%；并且

•宣布每股0.20美元的季度现金股息，将于2024年11月22日支付。

的运营结果截至2024年9月30日的三个月

净利息收入

截至截至2024年9月30日的三个月在为信用损失准备金之前，净利息收入为$10010万，NIm为 3.30% ，与$9620万相比 3.29%，分别用于比2023年6月30日过去三个月的1,0050万美元增加了0.15亿美元约为$380万增加，或关注 @EVERFI。4.0%,在提供信用损失准备前的净利息收入主要是由于这主要是因为金融机构存款利息和联邦基金销售收入增加了480万美元，从美国联邦住房贷款银行（“FHLB”）融资利息支出减少了140万美元，债务证券利息收入增加了42.2万美元，贷款利息收入增加了28.2万美元。这一增长部分被交易和储蓄存款利息支出增加了160万美元以及存单和其他定期存款利息支出增加了140万美元所抵消关于截至2024年9月30日的三个月。NIm 增加d 1 与基点相比比2023年6月30日过去三个月的1,0050万美元增加了0.15亿美元，主要是由于2024年9月30日结束的三个月期间存款成本下降，部分抵消了贷款收益和平均余额的下降。存款成本下降，部分抵消了贷款收益和平均余额的下降。

与其他 2023年9月30日结束的三个月相比，净利息收入之前信贷损失准备金截至2024年9月30日的三个月增加在影响基金股份的事件中。 70.1万美元，或关注 @EVERFI。0.7%。增加主要是因为由于美联储房屋货款银行贷款利息支出减少850万美元，与金融机构存款和联邦资金销售利息收入增加540万美元，以及债券利息收入增加490万美元。这种增加部分抵消了封闭存款和其他定期存款利息支出增加1010万美元，交易和储蓄存款利息支出增加730万美元，以及股票和其他投资利息收入减少690千美元。相比于2023年9月30日结束的三个月，Im 从2024年9月30日结束的三个月的3.46%降至16个基点。这一降低主要是由于2024年9月30日结束的三个月存款成本增加，部分抵消了贷款收益增加以及债券平均余额和收益率增加。

非利息收入

2024年9月30日结束的三个月的非利息收入为1310万美元，比2024年6月30日结束的三个月增加了250万美元，增长了23.9%。增长主要是由于其他收入增加了160万美元，其中包括其他房地产业收入增加了120万美元，贷款费用增加了110万美元，以及服务费和存款费用增加了46.8万美元。但由于政府担保贷款收入减少了54万美元，增长部分被抵消。

与2023年9月30日结束的三个月相比，截至2024年9月30日结束的三个月的非利息收入增加了340万美元，增幅为35.5%。主要是由于其他收入增加了220万美元，其中OREO收入增加了120万美元，贷款费用增加了170万美元，存款账户的服务费和手续费增加了28.3万美元。这一增长部分抵消了政府担保贷款收入减少了100万美元，主要是由于公司的美国农业部销售额减少。

非利息费用

Noninte截至2024年9月30日的三个月，休息支出为7,010万美元，而截至2024年6月30日的三个月为6,310万美元，增长了700万美元，增长了11.0％。增长的主要原因是工资和员工福利增加了460万美元，这主要是由于应计激励金增加到目标支出额的80％，主要由奥利奥支出推动的其他非利息支出增加了190万美元，营销费用增加了80.5万美元，入住率和设备支出增加了20.4万美元。与截至2024年6月30日的三个月相比，专业和监管费用减少了71.4万美元，部分抵消了这一增长。

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.

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															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 equity1, 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 assets1, 3	1.38		%	1.42		%	1.42		%	1.54		%	1.61		%	1.41		%	1.90		%
Pre-tax, pre-provision operating return on average loans1, 3	1.83			1.83			1.84			1.97			2.05			1.83			2.43
Operating return on average assets1,3	1.00			0.91			0.95			1.02			1.06			0.95			1.20
Operating return on average tangible common equity1,3	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

1 Refer 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.

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

3 Annualized 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.

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.

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		3,486,805			32.7		3,191,737			30.9		3,403,427			33.4
Correspondent money market accounts	561,489			5.1		584,067			5.4		597,690			5.6		580,037			5.6		493,681			4.8
Total deposits	$	11,036,011		100	%	$	10,724,844		100	%	$	10,653,820		100	%	$	10,338,195		100	%	$	10,196,518		100	%

Total Loans to Deposits Ratio	88.0		%			91.8		%			91.7		%			93.6		%			94.9		%

Total Loans to Deposit Ratio, excluding MW loans and LHFS	81.9		%			85.9		%			86.9		%			89.1		%			90.7		%

1 Total LHI does not include deferred fees of $8.2 million, $7.8 million, $6.9 million, $8.8 million and $10.1 million at September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023 and September 30, 2023, respectively.

VERITEX HOLDINGS, INC. AND SUBSIDIARIES

Financial Highlights

(Unaudited)

Asset Quality


	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 in thousands)
NPAs:
Nonaccrual loans	$	55,335		$	58,537		$	75,721		$	79,133		$	65,676		$	55,335		$	65,676
Nonaccrual PCD loans1	70			73			9,419			13,715			13,718			70			13,718
Accruing loans 90 or more days past due2	2,860			143			220			2,975			474			2,860			474
Total nonperforming loans held for investment (“NPLs”)	58,265			58,753			85,360			95,823			79,868			58,265			79,868
Other real estate owned	9,034			24,256			18,445			—			—			9,034			—
Total NPAs	$	67,299		$	83,009		$	103,805		$	95,823		$	79,868		$	67,299		$	79,868

Charge-offs:
1-4 family residential	$	—		$	(31)		$	—		$	(21)		$	—		$	(31)		$	—
Multifamily	—			(198)			—			(192)			—			(198)			—
OOCRE	—			—			(120)			(364)			(375)			(120)			(491)
NOOCRE	—			(1,969)			(4,293)			(5,434)			—			(6,262)			(8,215)
C&I	(2,259)			(5,601)			(946)			(3,893)			(1,929)			(8,806)			(6,520)

Consumer	(54)			(30)			(71)			(33)			(49)			(155)			(203)
Total charge-offs	$	(2,313)		$	(7,829)		$	(5,430)		$	(9,937)		$	(2,353)		$	(15,572)		$	(15,429)

Recoveries:
1-4 family residential	$	3		$	—		$	1		$	1		$	—		$	4		$	2
OOCRE	—			120			—			—			—			120			—
NOOCRE	—			—			—			—			200			—			350
C&I	1,962			361			96			387			308			2,419			778
Mortgage Warehouse	46			—			—			—			—			46			—
Consumer	33			497			49			34			14			579			66
Total recoveries	$	2,044		$	978		$	146		$	422		$	522		$	3,168		$	1,196

Net charge-offs	$	(269)		$	(6,851)		$	(5,284)		$	(9,515)		$	(1,831)		$	(12,404)		$	(14,233)

Provision for credit losses	$	4,000		$	8,250		$	7,500		$	9,500		$	8,627		$	19,750		$	33,012

ACL	$	117,162		$	113,431		$	112,032		$	109,816		$	109,831		$	117,162		$	109,831

Asset Quality Ratios:
NPAs to total assets	0.52		%	0.65		%	0.82		%	0.77		%	0.65		%	0.52		%	0.65		%
NPAs, excluding nonaccrual PCD loans, to total assets	0.52			0.65			0.74			0.66			0.44			0.52			0.54
NPAs to total loans and OREO	0.70			0.85			1.06			0.99			0.83			0.70			0.83
NPLs to total LHI	0.60			0.60			0.88			1.00			0.83			0.60			0.83
NPLs, excluding nonaccrual PCD loans, to total LHI	0.60			0.60			0.78			0.86			0.69			0.60			0.69
ACL to total LHI	1.21			1.16			1.15			1.14			1.14			1.21			1.14
ACL to total loans, excluding MW and LHFS	1.30			1.23			1.21			1.19			1.19			1.30			1.19
Net charge-offs to average loans outstanding3	0.01			0.28			0.22			0.39			0.08			0.17			0.20

1 Nonaccrual 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.

2 Accruing 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.

3 Annualized 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
	Sep 30, 2024		Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Sep 30, 2023
	(Dollars in thousands, except per share data)
Tangible Common Equity
Total stockholders' equity	$	1,608,014	$	1,548,616	$	1,538,515	$	1,531,323	$	1,491,166
Adjustments:
Goodwill	(404,452)		(404,452)		(404,452)		(404,452)		(404,452)
Core deposit intangibles	(21,182)		(23,619)		(26,057)		(28,495)		(30,933)
Tangible common equity	$	1,182,380	$	1,120,545	$	1,108,006	$	1,098,376	$	1,055,781
Common shares outstanding	54,446		54,350		54,496		54,338		54,305

Book value per common share	$	29.53	$	28.49	$	28.23	$	28.18	$	27.46
Tangible book value per common share	$	21.72	$	20.62	$	20.33	$	20.21	$	19.44

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
	Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Sep 30, 2023
	(Dollars in thousands)
Tangible Common Equity
Total stockholders' equity	$	1,608,014		$	1,548,616		$	1,538,515		$	1,531,323		$	1,491,166
Adjustments:
Goodwill	(404,452)			(404,452)			(404,452)			(404,452)			(404,452)
Core deposit intangibles	(21,182)			(23,619)			(26,057)			(28,495)			(30,933)
Tangible common equity	$	1,182,380		$	1,120,545		$	1,108,006		$	1,098,376		$	1,055,781
Tangible Assets
Total assets	$	13,042,976		$	12,684,330		$	12,708,396		$	12,394,337		$	12,346,331
Adjustments:
Goodwill	(404,452)			(404,452)			(404,452)			(404,452)			(404,452)
Core deposit intangibles	(21,182)			(23,619)			(26,057)			(28,495)			(30,933)
Tangible Assets	$	12,617,342		$	12,256,259		$	12,277,887		$	11,961,390		$	11,910,946
Tangible Common Equity to Tangible Assets	9.37		%	9.14		%	9.02		%	9.18		%	8.86		%

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															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 in thousands)
Net income available for common stockholders adjusted for amortization of core deposit intangibles
Net income	$	31,001		$	27,202		$	24,156		$	3,499		$	32,621		$	82,359		$	104,762
Adjustments:
Plus: Amortization of core deposit intangibles	2,438			2,438			2,438			2,438			2,438			7,314			7,314
Less: Tax benefit at the statutory rate	512			512			512			512			512			1,536			1,536
Net income available for common stockholders adjusted for amortization of core deposit intangibles	$	32,927		$	29,128		$	26,082		$	5,425		$	34,547		$	88,137		$	110,540

Average Tangible Common Equity
Total average stockholders' equity	$	1,583,401		$	1,541,609		$	1,533,868		$	1,510,286		$	1,508,170		$	1,553,070		$	1,498,573
Adjustments:
Average goodwill	(404,452)			(404,452)			(404,452)			(404,452)			(404,452)			(404,452)			(404,452)
Average core deposit intangibles	(22,789)			(25,218)			(27,656)			(30,093)			(32,540)			(25,212)			(34,939)
Average tangible common equity	$	1,156,160		$	1,111,939		$	1,101,760		$	1,075,741		$	1,071,178		$	1,123,406		$	1,059,182
Return on Average Tangible Common Equity (Annualized)	11.33		%	10.54		%	9.52		%	2.00		%	12.80		%	10.48		%	13.95		%

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										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 in thousands, except per share data)
Operating Earnings
Net income	$	31,001	$	27,202	$	24,156	$	3,499	$	32,621	$	82,359	$	104,762
Plus: Severance payments1	1,487		613		—		—		—		2,100		1,950
Plus: Loss on sale of AFS securities, net	—		—		6,304		—		—		6,304		5,321

Plus: Equity method investment write-down	—		—		—		29,417		—		—		—
Plus: FDIC special assessment	—		134		—		768		—		134		—



Operating pre-tax income	32,488		27,949		30,460		33,684		32,621		90,897		112,033
Less: Tax impact of adjustments	307		166		1,323		2,059		—		1,796		1,544


Plus: Nonrecurring tax adjustments	—		527		—		—		—		527		—
Operating earnings	$	32,181	$	28,310	$	29,137	$	31,625	$	32,621	$	89,628	$	110,489

Weighted average diluted shares outstanding	54,932		54,823		54,842		54,691		54,597		54,866		54,563
Diluted EPS	$	0.56	$	0.50	$	0.44	$	0.06	$	0.60	$	1.50	$	1.92
Diluted operating EPS	$	0.59	$	0.52	$	0.53	$	0.58	$	0.60	$	1.63	$	2.02

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


	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 in thousands)
Pre-Tax, Pre-Provision Operating Earnings
Net income	$	31,001		$	27,202		$	24,156		$	3,499		$	32,621		$	82,359		$	104,762
Plus: Provision for income taxes	8,067			8,221			7,237			6,004			9,282			23,525			30,019
Plus: Provision for credit losses and unfunded commitments	4,000			8,250			5,959			8,000			7,718			18,209			32,471
Plus: Severance payments	1,487			613			—			—			—			2,100			1,950
Plus: Loss on sale of AFS securities, net	—			—			6,304			—			—			6,304			5,321
Plus: Equity method investment write-down	—			—			—			29,417			—			—			—
Plus: FDIC special assessment	—			134			—			768			—			134			—

Pre-tax, pre-provision operating earnings	$	44,555		$	44,420		$	43,656		$	47,688		$	49,621		$	132,631		$	174,523

Average total assets	$	12,861,918		$	12,578,706		$	12,336,042		$	12,306,634		$	12,259,062		$	12,593,206		$	12,274,697
Pre-tax, pre-provision operating return on average assets1	1.38		%	1.42		%	1.42		%	1.54		%	1.61		%	1.41		%	1.90		%

Average loans	$	9,661,774		$	9,765,428		$	9,563,372		$	9,581,784		$	9,625,005		$	9,663,518		$	9,594,996
Pre-tax, pre-provision operating return on average loans1	1.83		%	1.83		%	1.84		%	1.97		%	2.05		%	1.83		%	2.43		%

Average total assets	$	12,861,918		$	12,578,706		$	12,336,042		$	12,306,634		$	12,259,062		$	12,593,206		$	12,274,697
Return on average assets1	0.96		%	0.87		%	0.79		%	0.11		%	1.06		%	0.87		%	1.14		%
Operating return on average assets1	1.00			0.91			0.95			1.02			1.06			0.95			1.20

Operating earnings adjusted for amortization of core deposit intangibles
Operating earnings	$	32,181		$	28,310		$	29,137		$	31,625		$	32,621		$	89,628		$	110,489
Adjustments:
Plus: Amortization of core deposit intangibles	2,438			2,438			2,438			2,438			2,438			7,314			7,314
Less: Tax benefit at the statutory rate	512			512			512			512			512			1,536			1,536
Operating earnings adjusted for amortization of core deposit intangibles	$	34,107		$	30,236		$	31,063		$	33,551		$	34,547		$	95,406		$	116,267

Average Tangible Common Equity
Total average stockholders' equity	$	1,583,401		$	1,541,609		$	1,533,868		$	1,510,286		$	1,508,170		$	1,553,070		$	1,498,573
Adjustments:
Less: Average goodwill	(404,452)			(404,452)			(404,452)			(404,452)			(404,452)			(404,452)			(404,452)
Less: Average core deposit intangibles	(22,789)			(25,218)			(27,656)			(30,093)			(32,540)			(25,212)			(34,939)
Average tangible common equity	$	1,156,160		$	1,111,939		$	1,101,760		$	1,075,741		$	1,071,178		$	1,123,406		$	1,059,182
Operating return on average tangible common equity1	11.74		%	10.94		%	11.34		%	12.37		%	12.80		%	11.34		%	14.68		%

Efficiency ratio	61.94		%	59.11		%	62.45		%	77.49		%	54.49		%	61.15		%	50.88		%
Operating efficiency ratio
Net interest income	$	100,062		$	96,236		$	92,806		$	95,533		$	99,361		$	289,104		$	303,581
Noninterest income	13,106			10,578			6,662			(17,792)			9,674			30,346			36,897


Plus: Loss on sale of AFS securities, net	—			—			6,304			—			—			6,304			5,321
Plus: Equity method investment write-down	—			—			—			29,417			—			—			—
Operating noninterest income	13,106			10,578			12,966			11,625			9,674			36,650			42,218
Noninterest expense	70,100			63,141			62,116			60,238			59,414			195,357			173,226
Less: FDIC special assessment	—			134			—			768			—			134			—
Less: Severance payments	1,487			613			—			—			—			2,100			1,950

Operating noninterest expense	$	68,613		$	62,394		$	62,116		$	59,470		$	59,414		$	193,123		$	171,276
Operating efficiency ratio	60.63		%	58.41		%	58.73		%	55.50		%	54.49		%	59.28		%	49.53		%

1 Annualized ratio for quarterly metrics.