EX-99.1 2 a2025q1-exhibit991.htm EX-99.1 Document
Exhibit 99.1
VERITEX HOLDINGS, INC. REPORTS FIRST QUARTER 2025 OPERATING RESULTS

Dallas, TX — April 22, 2025 —Veritex Holdings, Inc. (“Veritex”, the “Company”, “we” or “our”) (Nasdaq: VBTX), the holding company for Veritex Community Bank, today announced the results for the quarter ended March 31, 2025.
“We continue to strengthen our balance sheet in support of our clients during a time of change and uncertainty,” said C. Malcolm Holland, III, the Company’s Chairman and Chief Executive Officer. “Key operating financial and credit performance metrics continue to improve and we remain focused on producing previously communicated 2025 goals, including a ROAA that exceeds 1%. Our focus also remains on disciplined loan growth, which is an industry wide challenge in the current environment.”

Quarter to Date
Financial HighlightsQ1 2025Q4 2024Q1 2024
(Dollars in thousands, except per share data)
(unaudited)
GAAP
Net income$29,070 $24,882 $24,156 
Diluted EPS0.53 0.45 0.44 
Book value per common share30.08 29.37 28.23 
Return on average assets1
0.94 %0.78 %0.79 %
Return on average equity1
7.27 6.17 6.33 
Net interest margin3.31 3.20 3.24 
Efficiency ratio60.91 67.04 62.45 
Non-GAAP2
Operating earnings$29,707 $29,769 $29,137 
Diluted operating EPS0.54 0.54 0.53 
Tangible book value per common share22.33 21.61 20.33 
Pre-tax, pre-provision operating earnings43,413 40,945 43,656 
Pre-tax, pre-provision operating return on average assets1
1.41 %1.28 %1.42 %
Pre-tax, pre-provision operating return on average loans1
1.89 1.72 1.84 
Operating return on average assets1
0.96 0.93 0.95 
Return on average tangible common equity1
10.49 9.04 9.52 
Operating return on average tangible common equity1
10.70 10.69 11.34 
Operating efficiency ratio60.62 62.98 58.73 
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 First Quarter Financial, Credit and Company Highlights

•Net interest margin (“NIM”) increased by 11 bps to 3.31%;
•Criticized assets decreased approximately $17.7 million during the quarter;
•Redeemed $75.0 million in subordinated notes on February 18, 2025, the associated rate of which switched from fixed to floating, SOFR + 347 bps, on November 15, 2024;
•Total loan to deposit ratio declined to 88.9% as of March 31, 2025, compared to 89.3% as of December 31, 2024 and 91.7% as of March 31, 2024;
•Repurchased 377,346 shares of our common stock, for approximately $9.5 million, during the quarter, which amounts to 555,016 total shares repurchased, for approximately $13.1 million, under the current Stock Buyback Program;
•Announced the extension of the Stock Buyback Program through March 31, 2026;
•Book value per share increased $0.71 to $30.08 and tangible book value (non-GAAP) per share increased $0.72 to $22.33;
•Allowance for credit losses (“ACL”) to total loans held for investment (“LHI”) increased to 1.19%, compared to 1.18% as of December 31, 2024 and 1.15% as of March 31, 2024; and
•Declared and increased our quarterly cash dividend to $0.22 per share of outstanding common stock payable on May 22, 2025.

1

Results of Operations for the Three Months Ended March 31, 2025
Net Interest Income
For the three months ended March 31, 2025, net interest income before provision for credit losses was $95.4 million and NIM was 3.31% compared to $96.1 million and 3.20%, respectively, for the three months ended December 31, 2024. The approximately $700 thousand decrease, or 0.7%, in net interest income before provision for credit losses was primarily due to a $8.5 million decrease in interest income on loans and a $2.6 million decrease in interest income on deposits in financial institutions and fed funds sold partially offset by a $10.0 million decrease in interest expense on certificates and other time deposits during the three months ended March 31, 2025, compared to the three months ended December 31, 2024. NIM increased 11 bps compared to the three months ended December 31, 2024, primarily due to a decrease in funding costs on deposits and the redemption of $75.0 million of subordinated notes during the three months ended March 31, 2025, partially offset by a decrease in loan yields and average balances.
Compared to the three months ended March 31, 2024, net interest income before provision for credit losses for the three months ended March 31, 2025 increased by $2.6 million, or 2.8%. The increase was primarily due to decreases in interest expense including $10.2 million on certificates and other time deposits, $1.6 million on transaction and savings deposits and $1.4 million on advances from the Federal Home Loan Bank (“FHLB”), as well as increases in interest income of $1.2 million on deposits in financial institutions and fed funds sold and $3.4 million on debt securities. The increase was partially offset by a $15.4 million decrease in interest income on loans. NIM increased 7 bps from 3.24% for the three months ended March 31, 2024 to 3.31% for the three months ended March 31, 2025. The increase was primarily due to decreased funding costs on deposits and advances resulting from interest rate cuts for the year over year period, partially offset by the related declines in rates earned on interest-earnings assets, primarily loans and interest-bearing deposits in other banks.

Noninterest Income
Noninterest income for the three months ended March 31, 2025 was $14.3 million, an increase of $4.2 million, or 42.1%, compared to the three months ended December 31, 2024. The change was primarily due to the $4.4 million loss on sales of debt securities recognized in the three months ended December 31, 2024 with no corresponding loss recorded in the three months ended March 31, 2025. In addition, there was a $1.5 million increase in other noninterest income, driven by a $1.2 million increase in loan servicing income and a $492 thousand increase in equity securities income recognized during the three months ended March 31, 2025 compared to the three months ended December 31, 2024. The increase was partially offset by a $2.1 million decrease in government guaranteed loan income, net, as well as lower BOLI income during the period due to $517 thousand in charges on BOLI policies exchanged under a 1035 exchange which is tax-free under the Internal Revenue Code.
Compared to the three months ended March 31, 2024, noninterest income for the three months ended March 31, 2025 increased by $7.6 million, or 114.5%. The increase was primarily due to a $6.3 million loss on sales of debt securities recognized in the three months ended March 31, 2024 with no corresponding loss recorded in the three months ended March 31, 2025. In addition, there was a $715 thousand increase in service charge and fee income and a $687 thousand increase in government guaranteed loan income for the year over year period.
Noninterest Expense
Noninterest expense was $66.8 million for the three months ended March 31, 2025, compared to $71.2 million for the three months ended December 31, 2024, a decrease of $4.4 million, or 6.1%. The decrease was primarily due to an $822 thousand decrease in salaries and employee benefits primarily due to lower severance costs, offset by an increase in payroll taxes, which are historically higher in the first quarter, a $1.7 million decrease in other noninterest expense primarily driven by lower earnings credit rebates, a $864 thousand decrease in marketing expenses, a $633 thousand decrease in professional and regulatory fees and a $338 thousand decrease in data processing and software costs compared to the three months ended December 31, 2024.
Compared to the three months ended March 31, 2024, noninterest expense for the three months ended March 31, 2025 increased by $4.7 million, or 7.6%. The increase was primarily due to a $3.3 million increase in salaries and employee benefits primarily due a $4.1 million increase in salaries expense and incentives accruals, offset by $1.4 million in higher deferred loan origination costs, which reduce salaries and employee benefit expenses. In addition, there was a $1.5 million increase in other noninterest expense, driven primarily by higher OREO expenses, a $547 thousand increase in data processing and software expense and a $486 thousand increase in marketing expenses. The increase was partially offset by a $1.1 million decrease in professional and regulatory fees compared to the three months ended March 31, 2024.
2

Income Tax
Income tax expense for the three months ended March 31, 2025 totaled $8.5 million, an increase of $304 thousand, or 3.7%, compared to the three months ended December 31, 2024. The Company’s effective tax rate was approximately 22.7% for the three months ended March 31, 2025 and was due to the recognition of an excess tax expense realized on share-based payment awards.
Financial Condition
Total LHI was $8.83 billion at March 31, 2025, a decrease of $70.5 million compared to December 31, 2024.
Total deposits were $10.67 billion at March 31, 2025, a decrease of $87.5 million, or 3.3% linked quarter annualized. The decrease was primarily the result of decreases of $279.6 million in certificates and other time deposits and $54.4 million in correspondent money market accounts, partially offset by increases of $127.2 million in noninterest bearing deposits and $119.3 million in interest-bearing transaction and savings deposits.

Credit Quality
Nonperforming assets (“NPAs”) totaled $96.9 million, or 0.77% of total assets, of which $72.6 million represents LHI and $24.3 million represents OREO at March 31, 2025, compared to $79.2 million, or 0.62% of total assets, at December 31, 2024. The Company had net charge-offs of $4.0 million for the three months ended March 31, 2025. Annualized net charge-offs to average loans outstanding were 17 bps for the three months ended March 31, 2025, compared to 32 bps and 22 bps for the three months ended December 31, 2024 and March 31, 2024, respectively.
ACL as a percentage of LHI was 1.19%, 1.18% and 1.15% at March 31, 2025, December 31, 2024 and March 31, 2024, respectively. The Company recorded a provision for credit losses on loans of $4.0 million, $2.3 million and $7.5 million for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024, respectively. The recorded provision for credit losses for the three months ended March 31, 2025, compared to the three months ended December 31, 2024, was primarily attributable to an increase in general reserves as a result of changes in economic factors which now represents 95% of the total ACL. The balance for unfunded commitments increased to $7.4 million as of March 31, 2025, compared to $6.1 million at December 31, 2024 and we recorded a $1.3 million provision for unfunded commitments for the three months ended March 31, 2025, compared to a $401 thousand benefit for unfunded commitments for the three months ended December 31, 2024 and a $1.5 million benefit for unfunded commitments for the three months ended March 31, 2024.

Dividend Information
After the close of the market on Tuesday, April 22, 2025, Veritex’s Board of Directors declared a quarterly cash dividend of $0.22 per share on its outstanding shares of common stock. The dividend will be paid on or after May 22, 2025 to stockholders of record as of the close of business on May 8, 2025.

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, April 23, 2025, at 8:30 a.m. Central Time. Participants may pre-register for the call by visiting https://edge.media-server.com/mmc/p/7qpcarsr/ and will receive a unique PIN, which can be used when dialing in for the call.

Participants may also register via teleconference: https://register-conf.media-server.com/register/BIcb9226ec9df94b1bbbc063029950af5d. 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, 2024, 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 Ended
Mar 31, 2025Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024
(Dollars and shares in thousands, except per share data)
Per Share Data (Common Stock):
Basic EPS$0.53 $0.46 $0.57 $0.50 $0.44 
Diluted EPS0.53 0.45 0.56 0.50 0.44 
Book value per common share30.08 29.37 29.53 28.49 28.23 
Tangible book value per common share1
22.33 21.61 21.72 20.62 20.33 
Dividends paid per common share outstanding2
0.22 0.20 0.20 0.20 0.20 
Common Stock Data:
Shares outstanding at period end54,297 54,517 54,446 54,350 54,496 
Weighted average basic shares outstanding for the period54,486 54,489 54,409 54,457 54,444 
Weighted average diluted shares outstanding for the period55,123 55,237 54,932 54,823 54,842 
Summary of Credit Ratios:
ACL to total LHI1.19 %1.18 %1.21 %1.16 %1.15 %
NPAs to total assets0.77 0.62 0.52 0.65 0.82 
NPAs to total loans and OREO1.03 0.83 0.70 0.85 1.06 
Net charge-offs to average loans outstanding3
0.17 0.32 0.01 0.28 0.22 
Summary Performance Ratios:   
Return on average assets3
0.94 %0.78 %0.96 %0.87 %0.79 %
Return on average equity3
7.27 6.17 7.79 7.10 6.33 
Return on average tangible common equity1, 3
10.49 9.04 11.33 10.54 9.52 
Efficiency ratio60.91 67.04 61.94 59.11 62.45 
     Net interest margin
3.31 3.20 3.30 3.29 3.24 
Selected Performance Metrics - Operating:
Diluted operating EPS1
$0.54 $0.54 $0.59 $0.52 $0.53 
Pre-tax, pre-provision operating return on average assets1, 3
1.41 %1.28 %1.38 %1.42 %1.42 %
Pre-tax, pre-provision operating return on average loans1, 3
1.89 1.72 1.83 1.83 1.84 
Operating return on average assets1,3
0.96 0.93 1.00 0.91 0.95 
Operating return on average tangible common equity1,3
10.70 10.69 11.74 10.94 11.34 
Operating efficiency ratio1
60.62 62.98 60.63 58.41 58.73 
Veritex Holdings, Inc. Capital Ratios:   
Average stockholders' equity to average total assets12.96 %12.58 %12.31 %12.26 %12.43 %
Tangible common equity to tangible assets1
9.95 9.54 9.37 9.14 9.02 
Tier 1 capital to average assets (leverage)10.55 10.32 10.06 10.06 10.12 
Common equity tier 1 capital11.04 11.09 10.86 10.49 10.37 
Tier 1 capital to risk-weighted assets11.31 11.36 11.13 10.75 10.63 
Total capital to risk-weighted assets13.46 13.96 13.91 13.45 13.33 
 Risk weighted assets$11,318,220 $11,247,813 $11,290,800 $11,450,997 $11,407,446 
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.
5

VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Financial Highlights
(In thousands)
 
Mar 31, 2025Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024
(unaudited)(unaudited)(unaudited)(unaudited)
ASSETS    
Cash and due from banks$81,088 $52,486 $54,165 $53,462 $41,884 
Interest bearing deposits in other banks768,702 802,714 1,046,625 598,375 698,885 
       Cash and cash equivalents849,790 855,200 1,100,790 651,837 740,769 
Debt securities, net1,463,1571,478,5381,423,6101,349,3541,344,930
Other investments69,452 69,638 71,257 75,885 76,788 
Loans held for sale (“LHFS”)69,236 89,309 48,496 57,046 64,762 
LHI, mortgage warehouse (“MW”)571,775 605,411 630,650 568,047 449,531 
LHI, excluding MW8,828,672 8,899,133 9,028,575 9,209,094 9,249,551 
Total loans9,469,683 9,593,853 9,707,721 9,834,187 9,763,844 
ACL(111,773)(111,745)(117,162)(113,431)(112,032)
Bank-owned life insurance 85,424 85,324 84,776 84,233 85,359 
Bank premises, furniture and equipment, net112,801 113,480 114,202 105,222 105,299 
Other real estate owned (“OREO”)24,268 24,737 9,034 24,256 18,445 
Intangible assets, net of accumulated amortization27,974 28,664 32,825 35,817 38,679 
Goodwill404,452 404,452 404,452 404,452 404,452 
Other assets210,863 226,200 211,471 232,518 241,863 
Total assets$12,606,091 $12,768,341 $13,042,976 $12,684,330 $12,708,396 
LIABILITIES AND STOCKHOLDERS’ EQUITY     
Deposits:     
Noninterest-bearing deposits$2,318,645 $2,191,457 $2,643,894 $2,416,727 $2,349,211 
Interest-bearing transaction and savings deposits5,180,495 5,061,157 4,204,708 3,979,454 4,220,114 
Certificates and other time deposits2,679,221 2,958,861 3,625,920 3,744,596 3,486,805 
Correspondent money market deposits486,762 541,117 561,489 584,067 597,690 
Total deposits10,665,123 10,752,592 11,036,011 10,724,844 10,653,820 
Accounts payable and other liabilities151,579 183,944 168,415 180,585 186,027 
Advances from FHLB— — — — 100,000 
Subordinated debentures and subordinated notes155,909 230,736 230,536 230,285 230,034 
Total liabilities10,972,611 11,167,272 11,434,962 11,135,714 11,169,881 
Stockholders’ equity:     
Common stock615 613 613 612 611 
Additional paid-in capital1,329,626 1,328,748 1,324,929 1,321,995 1,319,144 
Retained earnings526,044 507,903 493,921 473,801 457,499 
Accumulated other comprehensive loss(42,170)(65,076)(40,330)(76,713)(71,157)
Treasury stock
(180,635)(171,119)(171,119)(171,079)(167,582)
Total stockholders’ equity1,633,480 1,601,069 1,608,014 1,548,616 1,538,515 
Total liabilities and stockholders’ equity$12,606,091 $12,768,341 $13,042,976 $12,684,330 $12,708,396 
6

VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Financial Highlights
(In thousands, except per share data)
 For the Quarter Ended
Mar 31, 2025Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024
(unaudited)(unaudited)(unaudited)(unaudited)(unaudited)
Interest income:     
Loans, including fees$146,505 $154,998 $167,261 $166,979 $161,942 
Debt securities17,106 16,893 15,830 15,408 13,695 
Deposits in financial institutions and Fed Funds sold9,244 11,888 12,571 7,722 8,050 
Equity securities and other investments870 940 1,001 1,138 900 
Total interest income173,725 184,719 196,663 191,247 184,587 
Interest expense:   
Transaction and savings deposits45,165 44,841 47,208 45,619 46,784 
Certificates and other time deposits30,268 40,279 46,230 44,811 40,492 
Advances from FHLB27 130 47 1,468 1,391 
Subordinated debentures and subordinated notes2,824 3,328 3,116 3,113 3,114 
Total interest expense78,284 88,578 96,601 95,011 91,781 
Net interest income95,441 96,141 100,062 96,236 92,806 
Provision for credit losses4,000 2,300 4,000 8,250 7,500 
Provision (benefit) for unfunded commitments1,300 (401)— — (1,541)
Net interest income after provisions90,141 94,242 96,062 87,986 86,847 
Noninterest income:   
Service charges and fees on deposit accounts5,611 5,612 5,442 4,974 4,896 
Loan fees2,495 2,265 3,278 2,207 2,510 
Loss on sales of debt securities— (4,397)— — (6,304)
Government guaranteed loan income, net3,301 5,368 780 1,320 2,614 
Customer swap income700 509 271 326 449 
Other income2,182 699 3,335 1,751 2,497 
Total noninterest income14,289 10,056 13,106 10,578 6,662 
Noninterest expense:   
Salaries and employee benefits36,624 37,446 37,370 32,790 33,365 
Occupancy and equipment4,650 4,633 4,789 4,585 4,677 
Professional and regulatory fees4,931 5,564 4,903 5,617 6,053 
Data processing and software expense5,403 5,741 5,268 5,097 4,856 
Marketing2,032 2,896 2,781 1,976 1,546 
Amortization of intangibles2,438 2,437 2,438 2,438 2,438 
Telephone and communications330 323 335 365 261 
Other10,426 12,154 12,216 10,273 8,920 
Total noninterest expense66,834 71,194 70,100 63,141 62,116 
Income before income tax expense37,596 33,104 39,068 35,423 31,393 
Income tax expense8,526 8,222 8,067 8,221 7,237 
Net income$29,070 $24,882 $31,001 $27,202 $24,156 
Basic EPS$0.53 $0.46 $0.57 $0.50 $0.44 
Diluted EPS$0.53 $0.45 $0.56 $0.50 $0.44 
Weighted average basic shares outstanding54,486 54,489 54,409 54,457 54,444 
Weighted average diluted shares outstanding55,123 55,237 54,932 54,823 54,842 



7

VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Financial Highlights
(Unaudited)
 
 For the Quarter Ended
 March 31, 2025December 31, 2024March 31, 2024
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
$8,886,905 $140,329 6.40 %$8,957,193 $147,782 6.56 %$9,283,815 $157,585 6.83 %
LHI, MW426,724 6,176 5.87 492,372 7,216 5.83 279,557 4,357 6.27 
Debt securities1,467,220 17,106 4.73 1,458,057 16,893 4.61 1,294,994 13,695 4.25 
Interest-bearing deposits in other banks827,751 9,244 4.53 971,451 11,888 4.87 584,593 8,050 5.54 
Equity securities and other investments70,696 870 4.99 72,223 940 5.18 76,269 900 4.75 
Total interest-earning assets11,679,296 173,725 6.03 11,951,296 184,719 6.15 11,519,228 184,587 6.44 
ACL(111,563)(117,293)(112,229)
Noninterest-earning assets938,401 916,969 929,043 
Total assets$12,506,134 $12,750,972 $12,336,042 
Liabilities and Stockholders’ Equity         
Interest-bearing liabilities:         
Interest-bearing demand and savings deposits$5,449,091 $45,165 3.36 %$5,001,159 $44,841 3.57 %$4,639,445 $46,784 4.06 %
Certificates and other time deposits2,726,309 30,268 4.50 3,319,628 40,279 4.83 3,283,735 40,492 4.96 
Advances from FHLB and Other2,333 27 4.69 10,598 130 4.88 100,989 1,391 5.54 
Subordinated debentures and subordinated notes191,638 2,824 5.98 230,633 3,328 5.74 229,881 3,114 5.45 
Total interest-bearing liabilities8,369,371 78,284 3.79 8,562,018 88,578 4.12 8,254,050 91,781 4.47 
Noninterest-bearing liabilities:         
Noninterest-bearing deposits2,345,586 2,400,809 2,355,315   
Other liabilities170,389 183,810 192,809   
Total liabilities10,885,346 11,146,637 10,802,174   
Stockholders’ equity1,620,788 1,604,335 1,533,868   
Total liabilities and stockholders’ equity$12,506,134 $12,750,972 $12,336,042   
Net interest rate spread2
 2.24 %2.03 %1.97 %
Net interest income and margin3
 $95,441 3.31 %$96,141 3.20 %$92,806 3.24 %

1 Includes average outstanding balances of LHFS of $66.3 million, $46.4 million and $53.9 million for the quarters ended March 31, 2025, December 31, 2024, and March 31, 2024, 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
(Unaudited)
Yield Trend
 For the Quarter Ended
Mar 31,
2025		Dec 31,
2024		Sep 30,
2024		Jun 30,
2024		Mar 31,
2024
Average yield on interest-earning assets:   
Loans1
6.40 %6.56 %6.89 %6.90 %6.83 %
LHI, MW5.87 5.83 6.75 6.36 6.27 
Total Loans6.38 6.53 6.89 6.88 6.81 
Debt securities4.73 4.61 4.55 4.58 4.25 
Interest-bearing deposits in other banks4.53 4.87 5.41 5.54 5.54 
Equity securities and other investments4.99 5.18 5.25 5.80 4.75 
Total interest-earning assets6.03 %6.15 %6.49 %6.54 %6.44 %
Average rate on interest-bearing liabilities:
Interest-bearing demand and savings deposits3.36 %3.57 %4.00 %4.01 %4.06 %
Certificates and other time deposits4.50 4.83 5.00 5.02 4.96 
Advances from FHLB and other4.69 4.88 5.73 5.54 5.54 
Subordinated debentures and subordinated notes5.98 5.74 5.38 5.44 5.45 
Total interest-bearing liabilities3.79 %4.12 %4.46 %4.50 %4.47 %
Net interest rate spread2
2.24 %2.03 %2.03 %2.04 %1.97 %
Net interest margin3
3.31 %3.20 %3.30 %3.29 %3.24 %
1Includes average outstanding balances of LHFS of $66.3 million, $46.4 million, $54.3 million, $58.5 million and $53.9 million for the three months ended March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, 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
Mar 31,
2025		Dec 31,
2024		Sep 30,
2024		Jun 30,
2024		Mar 31,
2024
Average cost of interest-bearing deposits3.74 %4.07 %4.44 %4.46 %4.43 %
Average costs of total deposits, including noninterest-bearing2.91 3.16 3.42 3.46 3.42 

9

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

LHI and Deposit Portfolio Composition
Mar 31,
2025		Dec 31,
2024		Sep 30,
2024		Jun 30,
2024		Mar 31,
2024
(Dollars in thousands)
LHI1
Commercial and Industrial (“C&I”)$2,717,03730.7 %$2,693,53830.2 %$2,728,54430.2 %$2,798,26030.4 %$2,785,98730.1 %
Real Estate:
Owner occupied commercial (“OOCRE”)795,8089.0 780,0038.8 807,2238.9 806,2858.7 788,3768.5 
Non-owner occupied commercial (“NOOCRE”)2,266,52625.6 2,382,49926.7 2,338,09425.9 2,369,84825.7 2,352,99325.5 
Construction and land1,214,26013.7 1,303,71114.7 1,436,54015.8 1,536,58016.7 1,568,25716.9 
Farmland31,3390.4 31,6900.4 32,2540.4 30,5120.3 30,9790.3 
1-4 family residential 1,021,29311.6 957,34110.7 944,75510.5 917,40210.0 969,40110.5 
Multi-family residential782,4128.9 750,2188.4 738,0908.2 748,7408.1 751,6078.1 
Consumer8,5970.1 9,1150.1 11,2920.1 9,2450.1 8,8820.1 
Total LHI1
$8,837,272100 %$8,908,115100 %$9,036,792100 %$9,216,872100 %$9,256,482100 %
MW571,775605,411630,650568,047449,531
Total LHI1
$9,409,047$9,513,526$9,667,442$9,784,919$9,706,013
Total LHFS69,23689,30948,49657,04664,762
Total loans$9,478,283$9,602,835$9,715,938$9,841,965$9,770,775
Deposits
Noninterest-bearing$2,318,64521.7 %$2,191,45720.4 %$2,643,89424.0 %$2,416,72722.5 %$2,349,21122.1 %
Interest-bearing transaction863,4628.1 839,0057.8 421,0593.8 523,2724.9 724,1716.8 
Money market3,730,44635.0 3,772,96435.1 3,462,70931.4 3,268,28630.5 3,326,74231.2 
Savings586,5875.5 449,1884.2 320,9402.9 187,8961.8 169,2011.6 
Certificates and other time deposits2,679,22125.1 2,958,86127.5 3,625,92032.8 3,744,59634.9 3,486,80532.7 
Correspondent money market accounts486,7624.6 541,1175.0 561,4895.1 584,0675.4 597,6905.6 
Total deposits$10,665,123100 %$10,752,592100 %$11,036,011100 %$10,724,844100 %$10,653,820100 %
Total loans to deposits ratio88.9 %89.3 %88.0 %91.8 %91.7 %
Total loans to deposit ratio, excluding MW loans and LHFS82.9 %82.8 %81.9 %85.9 %86.9 %

1 Total LHI does not include deferred fees of $8.6 million, $9.0 million, $8.2 million, $7.8 million and $6.9 million at March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024 and March 31, 2024, respectively.

10

VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Financial Highlights
(Unaudited)
Asset Quality
 For the Quarter Ended
Mar 31, 2025Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024
(Dollars in thousands)
NPAs:    
Nonaccrual loans$69,188$52,521$55,335$58,537$75,721
Nonaccrual PCD loans1
196—70739,419
Accruing loans 90 or more days past due2
3,2491,9142,860143220
Total nonperforming loans held for investment (“NPLs”)72,63354,43558,26558,75385,360
Other real estate owned (“OREO”)24,26824,7379,03424,25618,445
Total NPAs$96,901$79,172$67,299$83,009$103,805
Charge-offs:
1-4 family residential$—$—$—$(31)$—
Multifamily———(198)—
OOCRE————(120)
NOOCRE(3,090)(5,113)—(1,969)(4,293)
C&I(918)(4,586)(2,259)(5,601)(946)
Consumer(212)(420)(54)(30)(71)
Total charge-offs$(4,220)$(10,119)$(2,313)$(7,829)$(5,430)
Recoveries:
1-4 family residential$21$2$3$—$1
OOCRE———120—
NOOCRE—1,323———
C&I321,0471,96236196
MW——46——
Consumer195303349749
Total recoveries$248$2,402$2,044$978$146
Net charge-offs$(3,972)$(7,717)$(269)$(6,851)$(5,284)
Provision for credit losses$4,000$2,300$4,000$8,250$7,500
ACL$111,773$111,745$117,162$113,431$112,032
Asset Quality Ratios:
NPAs to total assets0.77 %0.62 %0.52 %0.65 %0.82 %
NPAs, excluding nonaccrual PCD loans, to total assets0.77 0.62 0.52 0.65 0.74 
NPAs to total LHI and OREO1.03 0.83 0.70 0.85 1.06 
NPLs to total LHI0.77 0.57 0.60 0.60 0.88 
NPLs, excluding nonaccrual PCD loans, to total LHI0.77 0.57 0.60 0.60 0.78 
ACL to total LHI1.19 1.18 1.21 1.16 1.15 
ACL to total loans, excluding MW and LHFS1.27 1.25 1.30 1.23 1.21 
Net charge-offs to average loans outstanding3
0.17 0.32 0.01 0.28 0.22 
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.


11

VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
(Unaudited)

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

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

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

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

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

 As of
Mar 31, 2025Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024
(Dollars in thousands, except per share data)
Tangible Common Equity   
Total stockholders' equity$1,633,480 $1,601,069 $1,608,014 $1,548,616 $1,538,515 
Adjustments:
Goodwill(404,452)(404,452)(404,452)(404,452)(404,452)
Core deposit intangibles(16,306)(18,744)(21,182)(23,619)(26,057)
Tangible common equity$1,212,722 $1,177,873 $1,182,380 $1,120,545 $1,108,006 
Common shares outstanding54,297 54,517 54,446 54,350 54,496 
Book value per common share$30.08 $29.37 $29.53 $28.49 $28.23 
Tangible book value per common share$22.33 $21.61 $21.72 $20.62 $20.33 





12

VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
(Unaudited)

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

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

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

 As of
Mar 31, 2025Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024
(Dollars in thousands)
Tangible Common Equity   
Total stockholders' equity$1,633,480 $1,601,069 $1,608,014 $1,548,616 $1,538,515 
Adjustments:
Goodwill(404,452)(404,452)(404,452)(404,452)(404,452)
Core deposit intangibles(16,306)(18,744)(21,182)(23,619)(26,057)
Tangible common equity$1,212,722 $1,177,873 $1,182,380 $1,120,545 $1,108,006 
Tangible Assets
Total assets$12,606,091 $12,768,341 $13,042,976 $12,684,330 $12,708,396 
Adjustments:
Goodwill(404,452)(404,452)(404,452)(404,452)(404,452)
Core deposit intangibles(16,306)(18,744)(21,182)(23,619)(26,057)
Tangible Assets$12,185,333 $12,345,145 $12,617,342 $12,256,259 $12,277,887 
Tangible Common Equity to Tangible Assets9.95 %9.54 %9.37 %9.14 %9.02 %


13

VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
(Unaudited)

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

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

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

 For the Quarter Ended
Mar 31, 2025Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024
(Dollars in thousands)
Net income available for common stockholders adjusted for amortization of core deposit intangibles
Net income$29,070 $24,882 $31,001 $27,202 $24,156 
Adjustments:
Plus: Amortization of core deposit intangibles2,438 2,437 2,438 2,438 2,438 
Less: Tax benefit at the statutory rate512 512 512 512 512 
Net income available for common stockholders adjusted for amortization of core deposit intangibles$30,996 $26,807 $32,927 $29,128 $26,082 
     
Average Tangible Common Equity
Total average stockholders' equity$1,620,788 $1,604,335 $1,583,401 $1,541,609 $1,533,868 
Adjustments:
Average goodwill(404,452)(404,452)(404,452)(404,452)(404,452)
Average core deposit intangibles(17,904)(20,342)(22,789)(25,218)(27,656)
Average tangible common equity$1,198,432 $1,179,541 $1,156,160 $1,111,939 $1,101,760 
Return on Average Tangible Common Equity (Annualized)10.49 %9.04 %11.33 %10.54 %9.52 %

14

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 BOLI 1035 exchange charges, plus severance payments, plus loss on sales of debt securities available for sale (“AFS”), net, plus FDIC special assessment, less tax impact of adjustments, plus nonrecurring tax adjustments. We calculate (b) diluted operating earnings per share as operating earnings as described in clause (a) divided by weighted average diluted shares outstanding. We calculate (c) pre-tax, pre-provision operating earnings as operating earnings as described in clause (a) plus provision for income taxes, plus provision (benefit) for credit losses and unfunded commitments. We calculate (d) pre-tax, pre-provision operating return on average assets as pre-tax, pre-provision operating earnings as described in clause (a) divided by total average assets. We calculate (e) operating return on average assets as operating earnings as described in clause (a) divided by total average assets. We calculate (f) operating return on average tangible common equity as operating earnings as described in clause (a), adjusted for the amortization of intangibles and tax benefit at the statutory rate, divided by total average tangible common equity (average stockholders’ equity less average goodwill and average core deposit intangibles, net of accumulated amortization). We calculate (g) operating efficiency ratio as noninterest expense plus adjustments to operating noninterest expense divided by noninterest income plus adjustments to operating noninterest income, plus net interest income.

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

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

 For the Quarter Ended
Mar 31, 2025Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024
(Dollars in thousands, except per share data)
Operating Earnings
Net income$29,070 $24,882 $31,001 $27,202 $24,156 
Plus: BOLI 1035 exchange charges1
517 — — — — 
Plus: Severance payments2
— 1,545 1,487 613 — 
Plus: Loss on sales of AFS securities, net
— 4,397 — — 6,304 
Plus: FDIC special assessment— — — 134 — 
Operating pre-tax income29,587 30,824 32,488 27,949 30,460 
Less: Tax impact of adjustments109 1,248 307 166 1,323 
Plus: Nonrecurring tax adjustments229 193 — 527 — 
Operating earnings$29,707 $29,769 $32,181 $28,310 $29,137 
Weighted average diluted shares outstanding55,123 55,237 54,932 54,823 54,842 
Diluted EPS$0.53 $0.45 $0.56 $0.50 $0.44 
Diluted operating EPS$0.54 $0.54 $0.59 $0.52 $0.53 

1Represents non-recurring charges for the completion of a 1035 exchange of BOLI contracts.
2Severance payments relate to certain restructurings made during the periods disclosed.











15


 For the Quarter Ended
Mar 31, 2025Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024
(Dollars in thousands)
Pre-Tax, Pre-Provision Operating Earnings
Net income$29,070 $24,882 $31,001 $27,202 $24,156 
Plus: Provision for income taxes8,526 8,222 8,067 8,221 7,237 
Plus: Provision for credit losses and unfunded commitments5,300 1,899 4,000 8,250 5,959 
Plus: Severance payments— 1,545 1,487 613 — 
Plus: Loss on sale of AFS securities, net— 4,397 — — 6,304 
Plus: BOLI 1035 exchange charges517 — — — — 
Plus: FDIC special assessment— — — 134 — 
Pre-tax, pre-provision operating earnings$43,413 $40,945 $44,555 $44,420 $43,656 
Average total assets$12,506,134 $12,750,972 $12,861,918 $12,578,706 $12,336,042 
Pre-tax, pre-provision operating return on average assets1
1.41 %1.28 %1.38 %1.42 %1.42 %
Average loans$9,313,629 $9,449,565 $9,661,774 $9,765,428 $9,563,372 
Pre-tax, pre-provision operating return on average loans1
1.89 %1.72 %1.83 %1.83 %1.84 %
Average total assets$12,506,134 $12,750,972 $12,861,918 $12,578,706 $12,336,042 
Return on average assets1
0.94 %0.78 %0.96 %0.87 %0.79 %
Operating return on average assets1
0.96 0.93 1.00 0.91 0.95 
Operating earnings adjusted for amortization of core deposit intangibles
Operating earnings$29,707 $29,769 $32,181 $28,310 $29,137 
Adjustments:
Plus: Amortization of core deposit intangibles2,438 2,437 2,438 2,438 2,438 
Less: Tax benefit at the statutory rate512 512 512 512 512 
Operating earnings adjusted for amortization of core deposit intangibles$31,633 $31,694 $34,107 $30,236 $31,063 
Average Tangible Common Equity
Total average stockholders' equity$1,620,788 $1,604,335 $1,583,401 $1,541,609 $1,533,868 
Adjustments:
Less: Average goodwill(404,452)(404,452)(404,452)(404,452)(404,452)
Less: Average core deposit intangibles(17,904)(20,342)(22,789)(25,218)(27,656)
Average tangible common equity$1,198,432 $1,179,541 $1,156,160 $1,111,939 $1,101,760 
Operating return on average tangible common equity1
10.70 %10.69 %11.74 %10.94 %11.34 %
Efficiency ratio60.91 %67.04 %61.94 %59.11 %62.45 %
Operating efficiency ratio
Net interest income$95,441 $96,141 $100,062 $96,236 $92,806 
Noninterest income14,289 10,056 13,106 10,578 6,662 
Plus: BOLI 1035 exchange charges517 — — — — 
Plus: Loss on sale of AFS securities, net— 4,397 — — 6,304 
Operating noninterest income14,806 14,453 13,106 10,578 12,966 
Noninterest expense66,834 71,194 70,100 63,141 62,116 
Less: FDIC special assessment— — — 134 — 
Less: Severance payments— 1,545 1,487 613 — 
Operating noninterest expense$66,834 $69,649 $68,613 $62,394 $62,116 
Operating efficiency ratio60.62 %62.98 %60.63 %58.41 %58.73 %
1 Annualized ratio for quarterly metrics.
16