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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 

 
FORM 8-K
 

 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
 
Date of Report (date of earliest event reported): July 23, 2024


VERITEX HOLDINGS, INC.
(Exact name of Registrant as specified in its charter) 
 
Texas 001-36682 27-0973566
(State or other jurisdiction of
incorporation or organization)		 (Commission File Number) (I.R.S. Employer
Identification Number)
 
8214 Westchester Drive, Suite 800
Dallas, Texas 75225
(Address of principal executive offices)
 
(972) 349-6200
(Registrant’s telephone number, including area code)
  
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, par value $0.01 per shareVBTXNasdaq Global Market


Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o


Item 2.02 Results of Operations and Financial Condition
 
On July 23, 2024, Veritex Holdings, Inc. (the “Company”), the holding company for Veritex Community Bank, a Texas state chartered bank, issued a press release describing its results of operations for the second quarter and year ended June 30, 2024. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

    As provided in General Instruction B.2 to Form 8-K, the information furnished in this Item 2.02 (including Exhibit 99.1) of this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and such information shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 7.01 Regulation FD Disclosure
On Wednesday, July 24, 2024, at 8:30 a.m., Central Time, the Company will host an investor conference call and webcast to review its second quarter financial results. The webcast will include a slide presentation that consists of information regarding the Company’s operating and growth strategies and financial performance. The presentation materials will be posted on the Company’s website after the close of the market on Tuesday, July 23, 2024. The presentation materials are attached hereto as Exhibit 99.2 and are incorporated herein by reference.
    As provided in General Instruction B.2 to Form 8-K, the information furnished in this Item 7.01 (including Exhibit 99.2) of this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, and such information shall not be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 8.01 Other Events
    After the close of the market on Tuesday, July 23, 2024, the Company issued a press release announcing the declaration of a quarterly cash dividend of $0.20 per share on its outstanding common stock. The dividend will be paid on August 23, 2024 to shareholders of record as of the close of business on August 9, 2024. The press release is attached hereto as Exhibit 99.3 and is incorporated herein by reference.
Forward Looking Statement

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.


Item 9.01 Financial Statements and Exhibits
(d) Exhibits.
Exhibit Number Description
 
 
104Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.







SIGNATURE
 
    Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
Veritex Holdings, Inc.
  
By:/s/ C. Malcolm Holland, III
 C. Malcolm Holland, III
 Chairman and Chief Executive Officer
Date:
July 23, 2024
 


Exhibit 99.1
VERITEX HOLDINGS, INC. REPORTS SECOND QUARTER 2024 OPERATING RESULTS

Dallas, TX — July 23, 2024 —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 June 30, 2024.
“We are pleased with the second quarter results, highlighted by improved credit quality, stabilized NIM and continued repositioning of our balance sheet,” said C. Malcolm Holland, III, the Company’s Chairman and Chief Executive Officer. “Our LDR, excluding mortgage warehouse, dropped below 86%, we built capital and continue to execute on our strategic plan.”

Quarter to DateYear to Date
Financial HighlightsQ2 2024Q1 2024Q2 2024Q2 2023
(Dollars in thousands, except per share data)
(unaudited)
GAAP
Net income$27,202 $24,156 $51,358 $72,141 
Diluted EPS0.50 0.44 0.94 1.32 
Book value per common share28.49 28.23 28.49 27.48 
Return on average assets1
0.87 %0.79 %0.83 %1.18 %
Return on average equity1
7.10 6.33 6.72 9.74 
Net interest margin3.29 3.24 3.27 3.60 
Efficiency ratio59.11 62.45 60.72 49.17 
Non-GAAP2
Operating earnings$28,310 $29,137 $57,447 $77,947 
Diluted operating EPS0.52 0.53 1.05 1.43 
Tangible book value per common share20.62 20.33 20.62 19.41 
Pre-tax, pre-provision operating earnings44,420 43,656 88,076 124,981 
Pre-tax, pre-provision operating return on average assets1
1.42 %1.42 %1.42 %2.05 %
Pre-tax, pre-provision operating return on average loans1
1.83 1.84 1.83 2.63 
Operating return on average assets1
0.91 0.95 0.93 1.28 
Return on average tangible common equity1
10.54 9.52 10.03 14.55 
Operating return on average tangible common equity1
10.94 11.34 11.14 15.66 
Operating efficiency ratio58.41 58.73 58.57 47.21 
1 Annualized ratio.
2 Refer 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 Second Quarter Financial, Credit and Company Highlights

•Pre-tax, pre-provision operating return on average assets was 1.42% as of June 30, 2024;
•Nonperforming assets (“NPAs”) decreased 17 bps from the prior quarter to 0.65% of total assets;
•Net interest margin (“NIM”) increased to 3.29%, a 5 bps improvement from the prior quarter;
•Common equity tier 1 capital grew 12 bps from the prior quarter to 10.49%;
•Total deposits grew $71.0 million, or 2.67% annualized, compared to March 31, 2024;
•Total loans grew $70.3 million, or 2.88% annualized, compared to March 31, 2024;
•Loan to deposit ratio, excluding mortgage warehouse loans, decreased to 85.9% as of June 30, 2024 compared to 86.9% as of March 31, 2024 and 100.4% as of June 30, 2023;
•Tangible book value per common share increased to $20.62;
•Allowance for credit losses (“ACL”) to total loans held for investment (“LHI”) increased to 1.16%, compared to 1.15% as of March 31, 2024 and 1.05% as of June 30, 2023;
•Named one of the “Best Companies to Work For”, “Best in Banking” and “Best Companies in the South” by the 2024 - 2025 U.S. News & World Report which evaluates companies based on quality of pay, work/life balance, and opportunities for professional development and advancement; and
•Declared quarterly cash dividend of $0.20 per share of outstanding common stock payable on August 23, 2024.

1

Results of Operations for the Three Months Ended June 30, 2024
Net Interest Income
For the three months ended June 30, 2024, net interest income before provision for credit losses was $96.2 million and net interest margin was 3.29% compared to $92.8 million and 3.24%, respectively, for the three months ended March 31, 2024. The $3.4 million increase, or 3.7%, in net interest income before provision for credit losses was primarily due to a $5.0 million increase in interest income on loans driven by an increase in loan yields, a $1.7 million increase in interest income on debt securities and other investments and a $1.2 million decrease in interest expense on transaction and savings deposits. The increase in net interest income was partially offset by a $4.3 million increase in interest expense on certificates and other time deposits, during the three months ended June 30, 2024. NIM increased 5 bps compared to the three months ended March 31, 2024, primarily due to an increase in loan yields during the three months ended June 30, 2024, partially offset by an increase in rates on certificates and other time deposits.
Compared to the three months ended June 30, 2023, net interest income before provision for credit losses for the three months ended June 30, 2024 decreased by $4.6 million, or 4.6%. The decrease was primarily due to a $16.7 million increase in interest expense on certificates and other time deposits and a $12.7 million increase in interest expense on transaction and savings deposits. The decrease was partially offset by a $16.1 million decrease in interest expense on advances from the Federal Home Loan Bank (“FHLB”), a $5.2 million increase in interest income on debt securities and a $3.3 million increase in interest income on loans driven by an increase in loan yields and average balances. NIM decreased 22 bps from 3.51% for the three months ended June 30, 2023. The decrease was primarily due to the increase in funding costs on deposits during the three months ended June 30, 2024, partially offset by an increase in loan yields and debt securities.

Noninterest Income
Noninterest income for the three months ended June 30, 2024 was $10.6 million, an increase of $3.9 million, or 58.8%, compared to the three months ended March 31, 2024. The increase was primarily due to a $6.3 million loss on sales of investment securities in the prior quarter as a result of a strategic restructuring, in which we sold $120.1 million of lower-yielding available for sale (“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, which occurred in March of 2024, with no corresponding transaction in the three months ended June 30, 2024. The increase was partially offset by a $1.3 million decrease in government guaranteed loan income, primarily driven by a decrease in the Company’s SBA and USDA sales, a $746 thousand decrease in other income and a $303 thousand decrease in loan fees.
Compared to the three months ended June 30, 2023, noninterest income for the three months ended June 30, 2024 decreased by $3.1 million, or 22.7%. The decrease was primarily due to a $2.8 million decrease in government guaranteed loan income, primarily driven by a decrease in the Company’s USDA sales, a $657 thousand decrease in customer swap income and a $485 thousand decrease in equity method investment income. Additionally, the decrease was related to a $298 thousand decrease in service charges and fees on deposit accounts. The decrease was partially offset by a $687 thousand increase in loan fees and a $463 thousand increase in other income.
Noninterest Expense
Noninterest expense was $63.1 million for the three months ended June 30, 2024, compared to $62.1 million for the three months ended March 31, 2024, an increase of $1.0 million, or 1.7%. The increase was primarily due to a $1.4 million increase in other noninterest expense, a $430 thousand increase in marketing expenses and a $241 thousand increase in data processing and software expense. The increase is partially offset by a $575 thousand decrease in salaries and employee benefits and a decrease of $436 thousand in professional and regulatory fees driven by FDIC insurance assessment expense, which decreased $203 thousand compared to the three months ended March 31, 2024.
Compared to the three months ended June 30, 2023, noninterest expense for the three months ended June 30, 2024 increased by $5.9 million, or 10.4%. The increase was primarily due to a $4.1 million increase in salaries and employee benefits and a $3.6 million increase in other noninterest expense. The increase was partially offset by a $1.3 million decrease in professional and regulatory fees driven by FDIC insurance assessment expense, which decreased $937 thousand compared to the three months ended June 30, 2023 and a $651 thousand decrease in marketing expense.
2

Financial Condition
Total LHI was $9.21 billion at June 30, 2024, a decrease of $40.5 million, or 1.7% annualized, compared to March 31, 2024.
Total deposits were $10.72 billion at June 30, 2024, an increase of $71.0 million, or 2.7% annualized, compared to March 31, 2024. The increase was primarily the result of an increase of $257.8 million in certificates and other time deposits and an increase of $67.5 million in noninterest-bearing deposits. The increase was partially offset by a decrease of $13.6 million in correspondent money market account balances and a decrease of $240.7 million in interest-bearing transaction and savings deposits.

Credit Quality
NPAs totaled $83.0 million, or 0.65% of total assets, of which $58.8 million represents LHI and $24.3 million represents other real estate owned (“OREO”) at June 30, 2024, compared to $103.8 million, or 0.82% of total assets, at March 31, 2024. The Company had net charge-offs of $6.9 million for the three months ended June 30, 2024. Annualized net charge-offs to average loans outstanding were 28 bps, of which 16 bps were acquired credits, for the three months ended June 30, 2024, compared to 22 bps and 48 bps for the three months ended March 31, 2024 and June 30, 2023, respectively.
ACL as a percentage of LHI was 1.16%, 1.15% and 1.05% at June 30, 2024, March 31, 2024 and June 30, 2023, respectively. The Company recorded a provision for credit losses of $8.3 million, $7.5 million and $15.0 million for the three months ended June 30, 2024, March 31, 2024 and June 30, 2023, respectively. The recorded provision for credit losses for the three months ended June 30, 2024, compared to the three months ended March 31, 2024, was primarily attributable to an increase in general reserves as a result of changes in economic factors. As the balance for unfunded commitments for the three months ended June 30, 2024 remained stable compared to the three months ended March 31, 2024, the Company recorded no benefit or provision for unfunded commitments for the three months ended June 30, 2024. The Company recorded a $1.5 million and a $1.1 million benefit for unfunded commitments for the three months ended March 31, 2024, and June 30, 2023, respectively.

Income Tax
Income tax expense for the three months ended June 30, 2024 totaled $8.2 million, an increase of $1.0 million, or 13.6%, compared to the three months ended March 31, 2024. The Company’s effective tax rate was approximately 23.2% for the three months ended June 30, 2024. The increase was primarily due to an one-time tax expense of $527 thousand, which is excluded from operating earnings, and a net discrete tax expense of $410 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, July 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 August 23, 2024 to stockholders of record as of the close of business on August 9, 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.

3

Conference Call
The Company will host an investor conference call and webcast to review the results on Wednesday, July 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/kp9m28ir 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/BIc18141b3387848439444d3060b38d779. 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.
4

VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Financial Highlights
(Unaudited)
 For the Quarter EndedFor the Six Months Ended
Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Jun 30, 2024Jun 30, 2023
(Dollars and shares in thousands, except per share data)
Per Share Data (Common Stock):
Basic EPS$0.50 $0.44 $0.06 $0.60 $0.62 $0.94 $1.33 
Diluted EPS0.50 0.44 0.06 0.60 0.62 0.94 1.32 
Book value per common share28.49 28.23 28.18 27.46 27.48 28.49 27.48 
Tangible book value per common share1
20.62 20.33 20.21 19.44 19.41 20.62 19.41 
Dividends paid per common share outstanding2
0.20 0.20 0.20 0.20 0.20 0.40 0.40 
Common Stock Data:
Shares outstanding at period end54,350 54,496 54,338 54,305 54,261 54,350 54,261 
Weighted average basic shares outstanding for the period54,457 54,444 54,327 54,300 54,247 54,451 54,199 
Weighted average diluted shares outstanding for the period54,823 54,842 54,691 54,597 54,486 54,832 54,546 
Summary of Credit Ratios:
ACL to total LHI1.16 %1.15 %1.14 %1.14 %1.05 %1.16 %1.05 %
NPAs to total assets0.65 0.82 0.77 0.65 0.55 0.65 0.55 
NPAs to total loans and OREO0.85 1.06 0.99 0.83 0.70 0.85 0.70 
Net charge-offs to average loans outstanding4
0.28 0.22 0.40 0.08 0.48 0.25 0.26 
Summary Performance Ratios:   
Return on average assets4
0.87 %0.79 %0.11 %1.06 %1.10 %0.83 %1.18 %
Return on average equity4
7.10 6.33 0.92 8.58 8.96 6.72 9.74 
Return on average tangible common equity1, 4
10.54 9.52 2.00 12.80 13.35 10.03 14.55 
Efficiency ratio59.11 62.45 77.49 54.49 49.94 60.72 49.17 
     Net interest margin
3.29 3.24 3.31 3.46 3.51 3.27 3.60 
Selected Performance Metrics - Operating:
Diluted operating EPS1
$0.52 $0.53 $0.58 $0.60 $0.64 $1.05 $1.43 
Pre-tax, pre-provision operating return on average assets1, 4
1.42 %1.42 %1.54 %1.61 %1.90 %1.42 %2.05 %
Pre-tax, pre-provision operating return on average loans1, 4
1.83 1.84 1.97 2.05 2.43 1.83 2.63 
Operating return on average assets1,4
0.91 0.95 1.02 1.06 1.13 0.93 1.28 
Operating return on average tangible common equity1,4
10.94 11.34 12.37 12.80 13.70 11.14 15.66 
Operating efficiency ratio1
58.41 58.73 55.50 54.49 48.90 58.57 47.21 
Veritex Holdings, Inc. Capital Ratios:   
Average stockholders' equity to average total assets12.26 %12.43 %12.27 %12.30 %12.23 %12.34 %12.16 %
Tangible common equity to tangible assets1
9.14 9.02 9.18 8.86 8.76 9.14 8.76 
Tier 1 capital to average assets (leverage)10.06 10.12 10.03 10.10 9.80 10.06 9.80 
Common equity tier 1 capital10.49 10.37 10.29 10.11 9.76 10.49 9.76 
Tier 1 capital to risk-weighted assets10.75 10.63 10.56 10.37 10.01 10.75 10.01 
Total capital to risk-weighted assets13.45 13.33 13.18 12.95 12.51 13.45 12.51 
Risk weighted assets$11,450,997 $11,407,446 $11,387,825 $11,617,229 $11,742,321 $11,450,997 $11,742,321 
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.
5

VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Financial Highlights
(In thousands)
 
Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023
(unaudited)(unaudited)(unaudited)(unaudited)
ASSETS    
Cash and cash equivalents$651,837 $740,769 $629,063 $713,408 $663,921 
Debt securities, net1,349,3541,344,9301,257,0421,060,6291,144,020
Other investments75,885 76,788 76,238 80,869 138,894 
Loans held for sale (“LHFS”)57,046 64,762 79,072 41,313 29,876 
LHI, mortgage warehouse (“MW”)568,047 449,531 377,796 390,767 436,255 
LHI, excluding MW9,209,094 9,249,551 9,206,544 9,237,447 9,257,183 
Total loans9,834,187 9,763,844 9,663,412 9,669,527 9,723,314 
ACL(113,431)(112,032)(109,816)(109,831)(102,150)
Bank-owned life insurance 84,233 85,359 84,833 84,867 84,375 
Bank premises, furniture and equipment, net105,222 105,299 105,727 106,118 105,986 
Other real estate owned (“OREO”)24,256 18,445 — — — 
Intangible assets, net of accumulated amortization35,817 38,679 41,753 44,294 48,293 
Goodwill404,452 404,452 404,452 404,452 404,452 
Other assets232,518 241,863 241,633 291,998 259,263 
Total assets$12,684,330 $12,708,396 $12,394,337 $12,346,331 $12,470,368 
LIABILITIES AND STOCKHOLDERS’ EQUITY     
Deposits:     
Noninterest-bearing deposits$2,416,727 $2,349,211 $2,218,036 $2,363,340 $2,234,109 
Interest-bearing transaction and savings deposits3,979,454 4,220,114 4,348,385 3,936,070 3,590,253 
Certificates and other time deposits3,744,596 3,486,805 3,191,737 3,403,427 2,928,949 
Correspondent money market deposits584,067 597,690 580,037 493,681 480,598 
Total deposits10,724,844 10,653,820 10,338,195 10,196,518 9,233,909 
Accounts payable and other liabilities180,585 186,027 195,036 229,116 190,900 
Advances from FHLB— 100,000 100,000 200,000 1,325,000 
Subordinated debentures and subordinated notes230,285 230,034 229,783 229,531 229,279 
Total liabilities11,135,714 11,169,881 10,863,014 10,855,165 10,979,088 
Commitments and contingencies    
Stockholders’ equity:     
Common stock612 611 610 609 609 
Additional paid-in capital1,321,995 1,319,144 1,317,516 1,314,459 1,311,687 
Retained earnings473,801 457,499 444,242 451,513 429,753 
Accumulated other comprehensive loss(76,713)(71,157)(63,463)(107,833)(83,187)
Treasury stock
(171,079)(167,582)(167,582)(167,582)(167,582)
Total stockholders’ equity1,548,616 1,538,515 1,531,323 1,491,166 1,491,280 
Total liabilities and stockholders’ equity$12,684,330 $12,708,396 $12,394,337 $12,346,331 $12,470,368 
6

VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Financial Highlights
(In thousands, except per share data)
 For the Quarter EndedFor the Six Months Ended
Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Jun 30, 2024Jun 30, 2023
(unaudited)(unaudited)(unaudited)(unaudited)(unaudited)(unaudited)(unaudited)
Interest income:     
Loans, including fees$166,979 $161,942 $165,443 $167,368 $163,727 $328,921 $315,434 
Debt securities15,408 13,695 12,282 10,928 10,166 29,103 21,154 
Deposits in financial institutions and Fed Funds sold7,722 8,050 8,162 7,128 7,507 15,772 13,041 
Equity securities and other investments1,138 900 1,717 1,691 1,118 2,038 2,526 
Total interest income191,247 184,587 187,604 187,115 182,518 375,834 352,155 
Interest expense:   
Transaction and savings deposits45,619 46,784 46,225 39,936 32,957 92,403 62,814 
Certificates and other time deposits44,811 40,492 40,165 36,177 28,100 85,303 49,067 
Advances from FHLB1,468 1,391 2,581 8,523 17,562 2,859 29,920 
Subordinated debentures and subordinated notes3,113 3,114 3,100 3,118 3,068 6,227 6,134 
Total interest expense95,011 91,781 92,071 87,754 81,687 186,792 147,935 
Net interest income96,236 92,806 95,533 99,361 100,831 189,042 204,220 
Provision for credit losses1
8,250 7,500 9,500 8,627 15,000 15,750 24,385 
(Benefit) provision for unfunded commitments— (1,541)(1,500)(909)(1,129)(1,541)368 
Net interest income after provisions87,986 86,847 87,533 91,643 86,960 174,833 179,467 
Noninterest income:   
Service charges and fees on deposit accounts4,974 4,896 4,800 5,159 5,272 9,870 10,289 
Loan fees2,207 2,510 1,200 1,564 1,520 4,717 3,584 
Loss on sales of debt securities— (6,304)— — — (6,304)(5,321)
Government guaranteed loan income, net1,320 2,614 4,378 1,772 4,144 3,934 13,832 
Equity method investment (loss) income— — (29,417)(136)485 — (1,036)
Customer swap income326 449 258 180 983 775 1,196 
Other income1,751 2,497 989 1,135 1,288 4,248 4,679 
Total noninterest income (loss)10,578 6,662 (17,792)9,674 13,692 17,240 27,223 
Noninterest expense:   
Salaries and employee benefits32,790 33,365 30,606 30,949 28,650 66,155 60,515 
Occupancy and equipment4,585 4,677 4,670 4,881 4,827 9,262 9,800 
Professional and regulatory fees5,617 6,053 7,626 7,283 6,868 11,670 11,257 
Data processing and software expense5,097 4,856 4,569 4,541 4,709 9,953 9,429 
Marketing1,976 1,546 1,945 2,353 2,627 3,522 4,406 
Amortization of intangibles2,438 2,438 2,438 2,437 2,468 4,876 4,963 
Telephone and communications365 261 356 362 355 626 833 
Other10,273 8,920 8,028 6,608 6,693 19,193 12,609 
Total noninterest expense63,141 62,116 60,238 59,414 57,197 125,257 113,812 
Income before income tax expense35,423 31,393 9,503 41,903 43,455 66,816 92,878 
Income tax expense8,221 7,237 6,004 9,282 9,725 15,458 20,737 
Net income$27,202 $24,156 $3,499 $32,621 $33,730 $51,358 $72,141 
Basic EPS$0.50 $0.44 $0.06 $0.60 $0.62 $0.94 $1.33 
Diluted EPS$0.50 $0.44 $0.06 $0.60 $0.62 $0.94 $1.32 
Weighted average basic shares outstanding54,457 54,444 54,327 54,300 54,247 54,451 54,199 
Weighted average diluted shares outstanding54,823 54,842 54,691 54,597 54,486 54,832 54,546 
1 Includes provision for credit losses on AFS securities of $885 thousand for the six months ended June 30, 2023.
7

VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Financial Highlights
(Unaudited)
 
 For the Quarter Ended
 June 30, 2024March 31, 2024June 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
$9,344,482 $160,323 6.90 %$9,283,815 $157,585 6.83 %$9,285,550 $158,685 6.85 %
LHI, MW420,946 6,656 6.36 279,557 4,357 6.27 371,763 5,042 5.44 
Debt securities1,352,293 15,408 4.58 1,294,994 13,695 4.25 1,133,845 10,166 3.60 
Interest-bearing deposits in other banks560,586 7,722 5.54 584,593 8,050 5.54 583,818 7,507 5.16 
Equity securities and other investments78,964 1,138 5.80 76,269 900 4.75 137,868 1,118 3.25 
Total interest-earning assets11,757,271 191,247 6.54 11,519,228 184,587 6.44 11,512,844 182,518 6.36 
ACL(115,978)(112,229)(102,559)
Noninterest-earning assets937,413 929,043 939,938 
Total assets$12,578,706 $12,336,042 $12,350,223 
Liabilities and Stockholders’ Equity         
Interest-bearing liabilities:         
Interest-bearing demand and savings deposits$4,570,329 $45,619 4.01 %$4,639,445 $46,784 4.06 %$3,919,745 $32,957 3.37 %
Certificates and other time deposits3,591,035 44,811 5.02 3,283,735 40,492 4.96 2,873,548 28,100 3.92 
Advances from FHLB and Other106,648 1,468 5.54 100,989 1,391 5.54 1,472,912 17,562 4.78 
Subordinated debentures and subordinated notes230,141 3,113 5.44 229,881 3,114 5.45 229,151 3,068 5.37 
Total interest-bearing liabilities8,498,153 95,011 4.50 8,254,050 91,781 4.47 8,495,356 81,687 3.86 
Noninterest-bearing liabilities:         
Noninterest-bearing deposits2,346,908 2,355,315 2,175,002   
Other liabilities192,036 192,809 169,240   
Total liabilities11,037,097 10,802,174 10,839,598   
Stockholders’ equity1,541,609 1,533,868 1,510,625   
Total liabilities and stockholders’ equity$12,578,706 $12,336,042 $12,350,223   
Net interest rate spread2
 2.04 %1.97 %2.50 %
Net interest income and margin3
 $96,236 3.29 %$92,806 3.24 %$100,831 3.51 %

1 Includes average outstanding balances of LHFS of $58.5 million, $53.9 million and $23.4 million for the quarters ended June 30, 2024, March 31, 2024, and June 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.











8

VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Financial Highlights
(In thousands, except percentages)
For the Six Months Ended
June 30, 2024June 30, 2023
Average Outstanding BalanceInterest Earned/ Interest PaidAverage Yield/ RateAverage Outstanding BalanceInterest Earned/ Interest PaidAverage Yield/ Rate
Assets
Interest-earning assets:
Loans1
$9,314,148 $317,908 6.86 %$9,213,742 $305,486 6.69 %
LHI, MW350,25211,0136.32 366,0009,9485.48 
Debt securities1,323,64429,1034.42 1,192,82321,1543.58 
Interest-bearing deposits in other banks572,58915,7725.54 531,37313,0414.95 
Equity securities and other investments77,6162,0385.28 131,4622,5263.87 
Total interest-earning assets11,638,249375,8346.49 11,435,400352,1556.21 
ACL(114,104)(97,639)
Noninterest-earning assets933,229944,883
Total assets$12,457,374 $12,282,644 
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand and savings deposits$4,604,887 $92,403 4.04 %$4,033,975 $62,814 3.14 %
Certificates and other time deposits3,437,38585,303 4.99 2,731,92549,0673.62 
Advances from FHLB and Other103,8192,859 5.54 1,298,76529,9204.65 
Subordinated debentures and subordinated notes230,0116,227 5.44 230,1956,1345.37 
Total interest-bearing liabilities8,376,102186,7924.48 8,294,860147,9353.60 
Noninterest-bearing liabilities:
Noninterest-bearing deposits2,351,1122,322,790
Other liabilities192,422171,299
Total liabilities10,919,63610,788,949
Stockholders’ equity1,537,7381,493,695
Total liabilities and stockholders’ equity$12,457,374 $12,282,644 
Net interest rate spread2
2.01 %2.61 %
Net interest income and margin3
$189,042 3.27 %$204,220 3.60 %
1 Includes average outstanding balances of LHFS of $56.2 million and $21.5 million for the six months ended June 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.
9

VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Financial Highlights
(Unaudited)
Yield Trend
 For the Quarter Ended
Jun 30,
2024		Mar 31,
2024		Dec 31,
2023		Sep 30,
2023		Jun 30,
2023
Average yield on interest-earning assets:   
Loans1
6.90 %6.83 %6.88 %6.92 %6.85 %
LHI, MW6.36 6.27 5.82 6.38 5.44 
Total Loans6.88 6.81 6.85 6.90 6.80 
Debt securities4.58 4.25 4.10 3.87 3.60 
Interest-bearing deposits in other banks5.54 5.54 5.51 5.43 5.16 
Equity securities and other investments5.80 4.75 8.28 4.94 3.25 
Total interest-earning assets6.54 %6.44 %6.51 %6.51 %6.36 %
Average rate on interest-bearing liabilities:
Interest-bearing demand and savings deposits4.01 %4.06 %4.03 %3.80 %3.37 %
Certificates and other time deposits5.02 4.96 4.85 4.55 3.92 
Advances from FHLB5.54 5.54 5.60 4.66 4.78 
Subordinated debentures and subordinated notes5.44 5.45 5.36 5.39 5.37 
Total interest-bearing liabilities4.50 %4.47 %4.43 %4.21 %3.86 %
Net interest rate spread2
2.04 %1.97 %2.08 %2.30 %2.50 %
Net interest margin3
3.29 %3.24 %3.31 %3.46 %3.51 %
1Includes average outstanding balances of LHFS of $58.5 million, $53.9 million, $31.2 million, $28.3 million and $23.4 million for the three months ended June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023, and June 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 EndedFor the Six Months Ended
Jun 30,
2024		Mar 31,
2024		Dec 31,
2023		Sep 30,
2023		Jun 30,
2023		Jun 30,
2024		Jun 30,
2023
Average cost of interest-bearing deposits4.46 %4.43 %4.38 %4.12 %3.61 %4.44 %3.33 %
Average costs of total deposits, including noninterest-bearing3.46 3.42 3.37 3.15 2.73 3.44 2.48 

10

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

LHI and Deposit Portfolio Composition
Jun 30,
2024		Mar 31,
2024		Dec 31,
2023		Sep 30,
2023		Jun 30,
2023
(In thousands, except percentages)
LHI1
Commercial and Industrial (“C&I”)$2,798,26030.4 %$2,785,98730.1 %$2,752,06329.9 %$2,841,02430.7 %$2,850,08430.7 %
Real Estate:
Owner occupied commercial (“OOCRE”)806,2858.7 788,3768.5 794,0888.6 697,2997.5 671,6027.2 
Non-owner occupied commercial (“NOOCRE”)2,369,84825.7 2,352,99325.5 2,350,72525.5 2,398,06026.1 2,509,73127.1 
Construction and land1,536,58016.7 1,568,25716.9 1,734,25418.8 1,705,05318.4 1,659,70017.9 
Farmland30,5120.3 30,9790.3 31,1140.3 59,6840.6 51,6630.6 
1-4 family residential 917,40210.0 969,40110.5 937,11910.2 933,22510.1 923,44210.0 
Multi-family residential748,7408.1 751,6078.1 605,8176.6 603,3956.5 592,4736.4 
Consumer9,2450.1 8,8820.1 10,1490.1 9,8450.1 11,1890.1 
Total LHI$9,216,872100 %$9,256,482100 %$9,215,329100 %$9,247,585100 %$9,269,884100 %
MW568,047449,531377,796390,767436,255
Total LHI1
$9,784,919$9,706,013$9,593,125$9,638,352$9,706,139
Total LHFS57,04664,76279,07241,31329,876
Total Loans$9,841,965$9,770,775$9,672,197$9,679,665$9,736,015
Deposits
Noninterest-bearing$2,416,72722.5 %$2,349,21122.1 %$2,218,03621.5 %$2,363,34023.2 %$2,234,10924.2 %
Interest-bearing transaction523,2724.9 724,1716.8 927,1938.9 739,0987.2 676,6537.3 
Money market3,268,28630.5 3,326,74231.2 3,284,32431.8 3,096,49830.4 2,816,76930.5 
Savings187,8961.8 169,2011.6 136,8681.3 100,4741.0 96,8311.0 
Certificates and other time deposits3,744,59634.9 3,486,80532.7 3,191,73730.9 3,403,42733.4 2,928,94931.7 
Correspondent money market accounts584,0675.4 597,6905.6 580,0375.6 493,6814.8 480,5985.3 
Total deposits$10,724,844100 %$10,653,820100 %$10,338,195100 %$10,196,518100 %$9,233,909100 %
Total Loans to Deposits Ratio91.8 %91.7 %93.6 %94.9 %105.4 %
Total Loans to Deposit Ratio, excluding MW loans and LHFS85.9 %86.9 %89.1 %90.7 %100.4 %

1 Total LHI does not include deferred fees of $7.8 million, $6.9 million, $8.8 million, $10.1 million and $12.7 million at June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023 and June 30, 2023, respectively.

11

VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Financial Highlights
(Unaudited)
Asset Quality
 For the Quarter EndedFor the Six Months Ended
Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Jun 30, 2024Jun 30, 2023
(In thousands, except percentages)
NPAs:    
Nonaccrual loans$58,537$75,721$79,133$65,676$54,055$58,537$54,055
Nonaccrual PCD loans1
739,41913,71513,71813,7217313,721
Accruing loans 90 or more days past due2
1432202,975474528143528
Total nonperforming loans held for investment (“NPLs”)58,75385,36095,82379,86868,30458,75368,304
Other real estate owned24,25618,445———24,256—
Total NPAs$83,009$103,805$95,823$79,868$68,304$83,009$68,304
Charge-offs:
1-4 family residential$(31)$—$(21)$—$—$(31)$—
Multifamily(198)—(192)——(198)—
OOCRE—(120)(364)(375)—(120)(116)
NOOCRE(1,969)(4,293)(5,434)—(8,215)(6,262)(8,215)
C&I(5,601)(946)(3,893)(1,929)(3,540)(6,547)(4,591)
Consumer(30)(71)(33)(49)(92)(101)(154)
Total charge-offs$(7,829)$(5,430)$(9,937)$(2,353)$(11,847)$(13,259)$(13,076)
Recoveries:
1-4 family residential$—$1$1$—$1$1$2
OOCRE120————120—
NOOCRE———200150—150
C&I36196387308106457470
Consumer4974934144654652
Total recoveries$978$146$422$522$303$1,124$674
Net charge-offs$(6,851)$(5,284)$(9,515)$(1,831)$(11,544)$(12,135)$(12,402)
Provision for credit losses$8,250$7,500$9,500$8,627$15,000$15,750$24,385
ACL$113,431$112,032$109,816$109,831$102,150$113,431$102,150
Asset Quality Ratios:
NPAs to total assets0.65 %0.82 %0.77 %0.65 %0.55 %0.65 %0.55 %
NPAs, excluding nonaccrual PCD loans, to total assets0.65 0.74 0.66 0.54 0.44 0.65 0.44 
NPAs to total loans and OREO0.85 1.06 0.99 0.83 0.70 0.85 0.70 
NPLs to total LHI0.60 0.88 1.00 0.83 0.70 0.60 0.70 
NPLs, excluding nonaccrual PCD loans, to total LHI0.60 0.78 0.86 0.69 0.56 0.60 0.56 
ACL to total LHI1.16 1.15 1.14 1.14 1.05 1.16 1.05 
ACL to total loans, excluding MW and LHFS1.23 1.21 1.19 1.19 1.10 1.23 1.10 
Net charge-offs to average loans outstanding3
0.28 0.22 0.40 0.08 0.48 0.25 0.26 
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.
3Annualized ratio for quarterly metrics.



12

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
Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023
(Dollars in thousands, except per share data)
Tangible Common Equity   
Total stockholders' equity$1,548,616 $1,538,515 $1,531,323 $1,491,166 $1,491,280 
Adjustments:
Goodwill(404,452)(404,452)(404,452)(404,452)(404,452)
Core deposit intangibles(23,619)(26,057)(28,495)(30,933)(33,371)
Tangible common equity$1,120,545 $1,108,006 $1,098,376 $1,055,781 $1,053,457 
Common shares outstanding54,350 54,496 54,338 54,305 54,261 
Book value per common share$28.49 $28.23 $28.18 $27.46 $27.48 
Tangible book value per common share$20.62 $20.33 $20.21 $19.44 $19.41 





13

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
Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023
(Dollars in thousands)
Tangible Common Equity   
Total stockholders' equity$1,548,616 $1,538,515 $1,531,323 $1,491,166 $1,491,280 
Adjustments:
Goodwill(404,452)(404,452)(404,452)(404,452)(404,452)
Core deposit intangibles(23,619)(26,057)(28,495)(30,933)(33,371)
Tangible common equity$1,120,545 $1,108,006 $1,098,376 $1,055,781 $1,053,457 
Tangible Assets
Total assets$12,684,330 $12,708,396 $12,394,337 $12,346,331 $12,470,368 
Adjustments:
Goodwill(404,452)(404,452)(404,452)(404,452)(404,452)
Core deposit intangibles(23,619)(26,057)(28,495)(30,933)(33,371)
Tangible Assets$12,256,259 $12,277,887 $11,961,390 $11,910,946 $12,032,545 
Tangible Common Equity to Tangible Assets9.14 %9.02 %9.18 %8.86 %8.76 %


14

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 EndedFor the Six Months Ended
Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Jun 30, 2024Jun 30, 2023
(Dollars in thousands)
Net income available for common stockholders adjusted for amortization of core deposit intangibles
Net income$27,202 $24,156 $3,499 $32,621 $33,730 $51,358 $72,141 
Adjustments:
Plus: Amortization of core deposit intangibles2,438 2,438 2,438 2,438 2,438 4,876 4,876 
Less: Tax benefit at the statutory rate512 512 512 512 512 1,024 1,024 
Net income available for common stockholders adjusted for amortization of core deposit intangibles$29,128 $26,082 $5,425 $34,547 $35,656 $55,210 $75,993 
     
Average Tangible Common Equity
Total average stockholders' equity$1,541,609 $1,533,868 $1,510,286 $1,508,170 $1,510,625 $1,537,738 $1,493,695 
Adjustments:
Average goodwill(404,452)(404,452)(404,452)(404,452)(404,452)(404,452)(404,452)
Average core deposit intangibles(25,218)(27,656)(30,093)(32,540)(34,969)(26,437)(36,159)
Average tangible common equity$1,111,939 $1,101,760 $1,075,741 $1,071,178 $1,071,204 $1,106,849 $1,053,084 
Return on Average Tangible Common Equity (Annualized)10.54 %9.52 %2.00 %12.80 %13.35 %10.03 %14.55 %

15

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 EndedFor the Six Months Ended
Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023June 30, 2024Jun 30, 2023
(Dollars in thousands, except per share data)
Operating Earnings
Net income$27,202 $24,156 $3,499 $32,621 $33,730 $51,358 $72,141 
Plus: Severance payments1
613 — — — 1,194 613 2,029 
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 assessment134 — 768 — — 134 — 
Operating pre-tax income27,949 30,460 33,684 32,621 34,924 58,409 79,491 
Less: Tax impact of adjustments166 1,323 2,059 — 251 1,489 1,544 
Plus: Nonrecurring tax adjustments527 — — — — 527 — 
Operating earnings$28,310 $29,137 $31,625 $32,621 $34,673 $57,447 $77,947 
Weighted average diluted shares outstanding54,823 54,842 54,691 54,597 54,486 54,832 54,546 
Diluted EPS$0.50 $0.44 $0.06 $0.60 $0.62 $0.94 $1.32 
Diluted operating EPS$0.52 $0.53 $0.58 $0.60 $0.64 $1.05 $1.43 
1 Severance payments relate to certain restructurings made during the periods disclosed.








16






 For the Quarter EndedFor the Six Months Ended
Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Jun 30, 2024Jun 30, 2023
(Dollars in thousands)
Pre-Tax, Pre-Provision Operating Earnings
Net income$27,202 $24,156 $3,499 $32,621 $33,730 $51,358 $72,141 
Plus: Provision for income taxes8,221 7,237 6,004 9,282 9,725 15,458 20,737 
Plus: Provision for credit losses and unfunded commitments8,250 5,959 8,000 7,718 13,871 14,209 24,753 
Plus: Severance payments613 — — — 1,194 613 2,029 
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 assessment134 — 768 — — 134 — 
Pre-tax, pre-provision operating earnings$44,420 $43,656 $47,688 $49,621 $58,520 $88,076 $124,981 
Average total assets$12,578,706 $12,336,042 $12,306,634 $12,259,062 $12,350,223 $12,457,374 $12,282,644 
Pre-tax, pre-provision operating return on average assets1
1.42 %1.42 %1.54 %1.61 %1.90 %1.42 %2.05 %
Average loans$9,765,428 $9,563,372 $9,581,784 $9,625,005 $9,657,313 $9,664,400 $9,579,742 
Pre-tax, pre-provision operating return on average loans1
1.83 %1.84 %1.97 %2.05 %2.43 %1.83 %2.63 %
Average total assets$12,578,706 $12,336,042 $12,306,634 $12,259,062 $12,350,223 $12,457,374 $12,282,644 
Return on average assets1
0.87 %0.79 %0.11 %1.06 %1.10 %0.83 %1.18 %
Operating return on average assets1
0.91 0.95 1.02 1.06 1.13 0.93 1.28 
Operating earnings adjusted for amortization of core deposit intangibles
Operating earnings$28,310 $29,137 $31,625 $32,621 $34,673 $57,447 $77,947 
Adjustments:
Plus: Amortization of core deposit intangibles2,438 2,438 2,438 2,438 2,438 4,876 4,876 
Less: Tax benefit at the statutory rate512 512 512 512 512 1,024 1,024 
Operating earnings adjusted for amortization of core deposit intangibles$30,236 $31,063 $33,551 $34,547 $36,599 $61,299 $81,799 
Average Tangible Common Equity
Total average stockholders' equity$1,541,609 $1,533,868 $1,510,286 $1,508,170 $1,510,625 $1,537,738 $1,493,695 
Adjustments:
Less: Average goodwill(404,452)(404,452)(404,452)(404,452)(404,452)(404,452)(404,452)
Less: Average core deposit intangibles(25,218)(27,656)(30,093)(32,540)(34,969)(26,437)(36,159)
Average tangible common equity$1,111,939 $1,101,760 $1,075,741 $1,071,178 $1,071,204 $1,106,849 $1,053,084 
Operating return on average tangible common equity1
10.94 %11.34 %12.37 %12.80 %13.70 %11.14 %15.66 %
Efficiency ratio59.11 %62.45 %77.49 %54.49 %49.94 %60.72 %49.17 %
Operating efficiency ratio
Net interest income$96,236 $92,806 $95,533 $99,361 $100,831 $189,042 $204,220 
17

Noninterest income10,578 6,662 (17,792)9,674 13,692 17,240 27,223 
Plus: Loss on sale of AFS securities, net— 6,304 — — — 6,304 5,321 
Plus: Equity method investment write-down— — 29,417 — — — — 
Operating noninterest income10,578 12,966 11,625 9,674 13,692 23,544 32,544 
Noninterest expense63,141 62,116 60,238 59,414 57,197 125,257 113,812 
Less: FDIC special assessment134 — 768 — — 134 — 
Less: Severance payments613 — — — 1,194 613 2,029 
Operating noninterest expense$62,394 $62,116 $59,470 $59,414 $56,003 $124,510 $111,783 
Operating efficiency ratio58.41 %58.73 %55.50 %54.49 %48.90 %58.57 %47.21 %
1 Annualized ratio for quarterly metrics.
18
A BETTER STATE OF BANKING Veritex Holdings, Inc. Second Quarter 2024 Results Earnings Release July 24, 2024 NASDAQ: VBTX © 2024 Veritex Bank Member FDIC

 
2 Forward-Looking Statements This presentation 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’s 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 presentation 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. This presentation also includes industry and trade association data, forecasts and information that Veritex has prepared based, in part, upon data, forecasts and information obtained from independent trade associations, industry publications and surveys, government agencies and other information publicly available to Veritex, which information may be specific to particular markets or geographic locations. Some data is also based on Veritex's good faith estimates, which are derived from Veritex management's knowledge of the industry, markets and independent sources. Industry publications, surveys and forecasts generally state that the information contained therein has been obtained from sources believed to be reliable. Although Veritex believes these sources are reliable, Veritex has not independently verified the information contained therein. While Veritex is not aware of any misstatements regarding the industry data, forecasts and information included in this presentation, such data forecasts, and information and Veritex's estimates based thereon involve risks, assumptions and uncertainties and are subject to change based on various factors. Veritex does not undertake any obligation, and specifically declines any obligation, to supplement, update or revise such data forecasts, and information and Veritex's estimates based thereon, whether as a result of new information, future developments or otherwise, except as required by law. This presentation contains certain non-GAAP (generally accepted accounting principles) financial measures, including tangible book value per common share (“TBVPS”), tangible common equity to tangible assets, return on average tangible common equity (“ROATCE”), operating earnings, pre-tax, pre-provision (“PTPP”) operating earnings, diluted operating earnings per shares (“EPS”), operating return on average assets (“ROAA”), PTPP operating ROAA, Operating ROATCE, operating efficiency ratio, operating noninterest income, operating noninterest expense and adjusted net interest margin (“NIM”). Veritex’s management uses these non-GAAP financial measures to evaluate its operating performance and provide information that is important to investors. The non-GAAP financial measures that Veritex discusses in this presentation should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Please see “Reconciliation of Non-GAAP Financial Measures” at the end of this presentation for reconciliations of non-GAAP measures to the most directly comparable financial measures calculated in accordance with GAAP. Use of Non-GAAP Financial Measures

 
3 (line chart represents ADC as a % of RBC) Total ACL (% ACL to Total Loans) Strengthening the Balance Sheet 105.4% 94.9% 93.6% 91.7% 91.8%100.4% 90.7% 89.1% 86.9% 85.9% 2Q23 3Q23 4Q23 1Q24 2Q24 Loan to Deposit Ratio 29.2% 21.0% 20.4% 19.4% 18.9% 2Q23 3Q23 4Q23 1Q24 2Q24 Reliance on Wholesale Funding1($ in millions) $102,150 $109,831 $109,816 $112,032 2Q23 3Q23 4Q23 1Q24 2Q24 9.76% 10.11% 10.29% 10.37% 10.49% 2Q23 3Q23 4Q23 1Q24 2Q24 CET1 / Total RWA $9,234 $10,197 $10,338 $10,654 $10,725 2Q23 3Q23 4Q23 1Q24 2Q24 Deposit Growth $113,431 1.05% 1.16% (line chart represents LDR, excluding MW loans) 327.2% 317.0% 320.2% 318.8% 320.2% 115.2% 115.9% 118.7% 108.3% 107.2% 300. 305. 310. 315. 320. 325. 330. $0.80 $1.30 2Q23 3Q23 4Q23 1Q24 2Q24 CRE Concentration as % of RBC 1 Reliance on wholesale funding % is calculated at the Veritex Community Bank level. ($ in thousands)

 
4 2024 Second Quarter Highlights Balance Sheet1 Total Total Loans $9.8 Total Deposits $10.7 1 Total loans and deposits $ in billions as of June 30, 2024. 2 Refer to the reconciliation of Non-GAAP financial measures at the end of this presentation. 3 Net income $ in millions. Key Highlights • Pre-tax Pre-provision = $44.4 Million • 1.42% PTPP Return on Average Assets • 1.83% PTPP Return on Average Loans • NPAs decreased 17 basis points from 1Q24 to 0.65% of total assets • NIM expanded to 3.29%, a 5 basis point improvement from the prior quarter • CET1 grew 12 bps to 10.49% • Deposits grew $1.5 Billion, or 16%, year over year • Loans grew $101.9 Million, or 1.1%, year over year • Named one of the top employers in the 2024 – 2025 U.S. News and World Reports as overall "Best Companies to Work For," "Best in Banking," and "Best Companies in the South" 2Q24 2Q242 Key Performance Metrics Reported Operating Net Income3 $27.2 $28.3 Diluted EPS $0.50 $0.52 ROAA 0.87% 0.91% ROATCE 10.54% 10.94% Efficiency Ratio 59.11% 58.41%

 
5 Credit Quality Summary • 2024 annualized net charge-offs are 0.25% • Since 2019, acquired work out credits made up 78% of net charge-offs • NPA / Total Assets decreased 17 bps to 0.65% quarter over quarter 2Q23 3Q23 4Q23 1Q24 2Q24 0.00% 0.10% 0.20% 0.30% 30-59 Past Due 60-89 Past Due 90+ Past Due Totals: $25,188 $27,158 $60,459 $22,581 $15,322 Past Due Trend % of Total Loans1 Net Charge-off Acquired/Originated Lookback ($ in millions) ($ in millions) $68.3 $79.9 $95.8 $103.8 $83.0 0.55% 0.65% 0.77% 0.82% 0.65% 0.0% 0.1% 0.2% 0.3% 0.4% 0.5% 0.6% 0.7% 0.8% 0.9% 2Q23 3Q23 4Q23 1Q24 2Q24 NPAs NPAs/Total Assets NPAs / Total Assets 1 Total loans excludes Loans Held for Sale and MW loans. 2 Net charge-offs are annualized for 1Q24 and 2Q24. NCOs2 0.19% 0.36% 0.38% 0.16% 0.25% 0.22% 0.28% 75% decrease in total past dues from end of year 2023. 0.19% 0.36% 0.29% 0.16% 0.04% 0.21% 0.16% 0.09% 0.21% 0.01% 0.12% 2019 2020 2021 2022 2023 1Q24 2Q24 Acquired NCOs Originated NCOs

 
6 Credit Quality Summary • Criticized loans = $498.4 million • Criticized assets = $522.7 million • Total criticized assets were flat quarter over quarter ($ in millions, excluding PCD loans) Quarterly Criticized Loans $287.1 $304.5 $293.4 $350.3 $339.9 $225.0 $223.4 $213.2 $174.1 $158.5 2Q23 3Q23 4Q23 1Q24 2Q24 Special Mention Substandard (continued) Commercial Real Estate Criticized Loans Breakdown as of June 30, 2024 37% 25% 21% 11% 6% CRE Office CRE Retail CRE Hotel CRE Industrial CRE Other Total CRE Criticized $311.6 million, down 4.6% from 1Q24 $498.4$512.1 $527.9 $506.6 $524.4

 
7 Allowance For Credit Losses Summary • General reserve reflects current Texas and National economic outlook on economy and recessionary risk • Consistent Moody’s forecast weighting utilized in the 2Q24 ACL calculation compared to 1Q24 • General reserves represent 96% of the total ACL • Q-Factors represent 33 bps of the general reserve 1.16% Coverage // ACL increase of 11 bps from 2Q23 Loan balances subject to the ACL methodology remained relatively flat from March 2024 ACL increased $1.4 Million from 1Q24 ACL / Total Loans, excluding MW = 1.23% 0.96% 1.00% 1.05% 1.14% 1.14% 1.15% 1.16% 1.01% 1.07% 1.10% 1.19% 1.19% 1.21% 1.23% 0.90% 0.95% 1.00% 1.05% 1.10% 1.15% 1.20% 1.25% 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 ACL to Total Loans ACL to Total Loans, excluding MW ACL Coverage Trend Analysis

 
8 Capital Summary • Bought back $3.5 million of outstanding common stock under the stock buyback program at an average purchase price of $19.91, or 96.6% TBV/Share • CET1 increase primarily driven by earnings and a decrease in unfunded commitments • RWA down $291 million, or 2.5%, from 2Q23 • TBV increased to $20.62 quarter over quarter Capital Levels Capital Ratio 2Q24 2Q23 2Q24 (includes AOCI) CET1 Capital 10.49% 9.76% 9.82% Tier 1 Capital 10.75% 10.01% 10.08% Total Capital 13.45% 12.51% 12.78% Tangible Book Value Trend since IPO in 2014 CAGR 9.2% CAGR adding back dividends1 11.1% 1 Total dividends of $193.9 million included in the CAGR calculation. CET1 at 10.49%, up 12 bps quarter over quarter VHI Risk Weighted Assets Trend $12,000 $11,986 $11,742 $11,617 $11,388 $11,407 $11,451 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 ($ in Millions) $8.96 $9.59 $13.82 $12.75 $14.74 $14.73 $15.70 $17.49 $18.64 $20.21 $20.62 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2Q24

 
9 Year To Date Change in Deposits Deposits Summary • Total deposits increased $71.0 million during 2Q24, or 3% annualized • LDR decreased to 91.8%, from 105.4%, year over year • LDR, excluding MW loans, decreased to 85.9% from 100.4% year over year • Wholesale funding reliance at the Bank level is 18.9% 8 Quarter Term Funding Maturity Schedule $1,273,488 $1,041,242 $975,794 $368,429 $26,497 $11,339 $4,553 $3,424 5.17% 5.20% 5.02% 4.96% 4.55% 4.14% 3.05% 3.14% 0.08% 1.08% 2.08% 3.08% 4.08% 5.08% 6.08% 7.08% 8.08% 00%549631772268354985 %0611924732864950 %581672173084934056%16972782390455308%616712938429505%14682773184090351 %662749837924005563%18726813949520615%2478387419500136 %27638499470251065%73288369495062171%2534884975060123%7318649490571262075%833894605961722 %8135449850761702 %3384196504916722730%8593405616972882%3914554061772803 %843951066149277328 %4095035166279838%92401556417278390%485306116724938742%950013627638599 %48025116742837945%005863171268349497%5206012373864959%0581262178439470 %551068732813694495 %07617023384296505%9168273189440257%165207883391460549%6177280343952066 %1592783841904512%6727530889340156164%7278390495306216%725388495109146 %2277385409803511662 %7483794005963172%2683549850611924%732874955008136217 %3849470561069732 %8239455086 Amount Wtd Avg Rate 12 Month Trend of Total Cost of Deposits $225.8 ($ in Millions) ($29.7) $51.0 2.85% 2.95% 3.16% 3.33% 3.35% 3.41% 3.44% 3.40% 3.41% 3.42% 3.42% 3.49% 3.48% Total Cost of Deposits $3.3 $191.5 $4.0 ($59.3)

 
10 Loans Summary • Total loans grew 2.9% annualized in 2Q24 • Year to date change in loans driven by a $190.2 million increase in MW loans and $143.0 million increase in Multifamily slightly offset by a $197.7 million decrease in construction loans • 42% of 2024 payoffs were from the CRE portfolio • CRE ADC Construction Unfunded Balances decreased 51%, year over year, to $663 Million Quarterly Loan Commitment Production and Commitment Payoffs $46.2 $19.2 Commercial and Industrial (“C&I”) Owner occupied commercial (“OOCRE”) Non-owner occupied commercial (“NOOCRE”) Construction and land 1-4 family residential Multi-family residential MW Other $190.2 $334.3 $317.0 $327.3 $282.3 $704.2 $557.2 $380.6 $490.0 $224.8 $552.9 Quarterly Loan Production / Outstanding Balance Quarterly Loan Payoffs / Outstanding Balance $42,095 $112,997 $86,712 $111,428 $34,736 $64,827 $77,848 5.00% 5.60% 4.65% 6.26% 5.09% 3.96% 4.59% - 50,000 100,00 150,00 200,00 250,00 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 Outstanding Balance Average Note Rate CRE Fixed Rate Maturities $155,725 $389,722 $273,575 $372,038 $255,734 $329,750 $166,204 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 (40,000 60,000 160,000 260,000 360,000 460,000 CRE Variable Rate Maturities ($ in Thousands) ($0.5) $12.2 Year To Date Change in Loans ($19.7) ($197.7) $143.0 ($ in Millions)

 
11 CRE By Type Term ADC Total Multifamily 748,740 511,051 1,259,791 Whs/Industrial 656,733 501,118 1,157,851 Retail 652,830 40,269 693,099 Office 497,566 12,240 509,806 Hotel 405,081 40,570 445,651 SFR - 342,389 342,389 Commercial and Other 153,297 119,573 272,870 Total 3,114,247 1,567,210 4,681,457 Breakdown of CRE by Term and ADC OOS % Total 119,824 3% 331,839 7% 180,074 4% 32,371 1% 85,101 2% 3,554 - 18,400 - 771,163 16% Out of State Term/ADC as % of Total CRE ($ in thousands) ($ in thousands)

 
12 Out of State Exposure Breakdown of Out of State Total Loans $9,784,919 % of Total National Businesses1 $1,460,548 14.9% Mortgage Warehouse 273,397 Mortgage Servicing Rights 221,214 Lender Finance 618,639 Specialty Finance 146,914 USDA and SBA 200,384 Mortgage $250,046 2.6% Out of State $976,625 10.0% Texas CRE Developers 771,163 7.9% C&I / Shared National Credits 205,462 2.1% ($ in thousands)

 
13 Net Interest Income Summary • 2Q24 NIM – 3.29%, up 5 bps from 1Q24 • 2Q24 Total Loans Yield – 6.88%, up 7 bps from 1Q24 • Average 2Q24 loan and deposit new production spread = 440 bps • Average Cost of Total Deposits – 3.46% • Average earnings assets increased to $11.8 billion as of 2Q24, up 2% from 1Q24 $99.4 $95.5 $92.8 $96.2 3.51% 3.46% 3.31% 3.24% 3.29% 2Q23 3Q23 4Q23 1Q24 2Q24 Net Interest Income ("NII") NIM $100.8 NII / NIM Trend 1Q24 Net Interest Income $92,806 Impact of less nonaccrual interest reversals 1,639 Impact of loan rate changes 1,132 Impact of debt security rate changes 1,098 Impact of change in volume 481 Impact of deposit rate changes (841) Change in earning asset mix and other (79) 2Q24 Net Interest Income $96,236 ($ in thousand) Net Interest Income Rollforward Interest Rate Sensitivity1 1 Interest rate sensitivity is calculated using a static rate shock. ($ in Millions) 2Q24 2Q24 Interest Rate Scenario Percentage Change From Base EVE Shock Scenerio Percentage Change From Base Up 200 bps 7.65% Up 200 bps -3.42% Up 100 bps 3.93% Up 100 bps -1.12% BASE CASE 0.00% BASE CASE 0.00% Down 100 bps -4.58% Down 100 bps -1.41% Down 200 bps -7.60% Down 200 bps -3.67%

 
14 Investments and Liquidity Summary • Represents 10.6% of total assets • 86.8% in AFS securities • Effective duration = 3.8 Years • 2Q24 portfolio yield = 4.58% • Uninsured and uncollateralized deposits was 31.4% on June 30, 2024 Debt Investments as % of Total Assets 89.4% 10.6% Other Assets Investment Portfolio Total Assets: $12.7 Billion Sources of Liquidity as of June 30, 2024 Current on-balance sheet: Cash and equivalents $651,837 Unpledged AFS securities 168,146 Total on-balance sheet 819,983 Fed Funds borrowing capacity 150,000 FHLB remaining borrowing capacity 2,162,162 Federal Reserve discount window 3,264,603 Brokered deposits available1 107,652 Total available sources 5,684,417 Total Liquidity $6,504,400 1 Brokered deposits available is driven by Company policy and not market availability. Total Available Liquidity $4,196 $5,321 $6,256 $6,197 $6,355 $6,504 $6,717 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 7/22/2024

 
15 Operating Noninterest Income Noninterest Income and Expense Summary • 2Q24 operating noninterest income = $10.6 Million • 2Q24 operating noninterest expense = $62.4 Million $36.0 $18.8 $- $- SBA USDA $- $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 1Q24 Prodcution 2Q24 Prodcution SBA and USDA Quarter over Quarter Production ($ in millions) Operating Noninterest Expense 47% 21% 12% 3% 17% Service charges and fees on deposit accounts Loan fees Government guaranteed loan income, net Customer swap income Other income 52% 7% 9% 8% 3% 4% 1% 16% Salaries and employee benefits Occupancy and equipment Professional and regulatory fees Data processing and software expense Marketing Amortization of intangibles Telephone and communications Other $62.4 Million $10.6 Million

 
A BETTER STATE OF BANKING © 2024 Veritex Bank Member FDIC Supplemental Information Veritex Holdings, Inc. Second Quarter 2024 Results

 
17 Reconciliation of Non-GAAP Financial Measures

 
18 Reconciliation of Non-GAAP Financial Measures

 
19 Reconciliation of Non-GAAP Financial Measures

 
20 Reconciliation of Non-GAAP Financial Measures

 
21 Reconciliation of Non-GAAP Financial Measures

 
A BETTER STATE OF BANKING Veritex Holdings, Inc. Second Quarter 2024 Results © 2024 Veritex Bank Member FDIC

 
Exhibit 99.3
veritexseclogo.jpg

PRESS RELEASE
FOR IMMEDIATE RELEASE

Veritex Holdings, Inc. Declares Cash Dividend on Common Stock

Dallas, TX – July 23, 2024 – Veritex Holdings, Inc. (Nasdaq: VBTX) (“Veritex” or the “Company”), the parent holding company for Veritex Community Bank, today announced the declaration of a quarterly cash dividend of $0.20 per share on its outstanding common stock. The dividend will be paid on or after August 23, 2024 to shareholders of record as of August 9, 2024.
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 Statement
This press release includes “forward-looking statements,” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements include statements regarding Veritex’s projected plans and objectives, including the expected payment date of its common stock dividend. Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “target,” “estimate,” “seek,” “plan,” “outlook,” “continue,” “positions,” “prospects” or “potential,” by future conditional verbs such as “will,” “would,” “should,” “could” or “may”, or by variations of such words or by similar expressions. These forward-looking statements are subject to numerous assumptions, risks and uncertainties which change over time and are beyond Veritex’s control. Forward-looking statements speak only as of the date they are made and Veritex assumes no duty to supplement, update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.
Source: Veritex Holdings, Inc.

Investor Relations:
972-349-6132
investorrelations@veritexbank.com




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Cover Page
Jul. 23, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jul. 23, 2024
Entity Registrant Name VERITEX HOLDINGS, INC.
Entity Incorporation, State or Country Code TX
Entity File Number 001-36682
Entity Tax Identification Number 27-0973566
Entity Address, Address Line One 8214 Westchester Drive, Suite 800
Entity Address, City or Town Dallas
Entity Address, State or Province TX
Entity Address, Postal Zip Code 75225
City Area Code 972
Local Phone Number 349-6200
Title of 12(b) Security Common Stock, par value $0.01 per share
Trading Symbol VBTX
Security Exchange Name NASDAQ
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0001501570
Amendment Flag false
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