DALLAS, Jan. 28, 2025 (GLOBE NEWSWIRE) -- Veritex Holdings, Inc. ("Veritex", the "Company", "we" or "our") (NASDAQ:VBTX), the holding company for Veritex Community Bank, today announced the results for the fourth quarter and full year of 2024.

"We achieved significant milestones during 2024 as we improved our credit risk profile and strengthened and completed our balance sheet remake," said C. Malcolm Holland, III, the Company's Chairman and Chief Executive Officer. "My team and I are committed to continue to drive execution of our strategic plan in 2025. Now it's back to what we do best; grow profitability."

2024 Highlights:

Operating EPS was $2.17 for 2024;
Criticized loans decreased approximately $100 million during 2024;
Commercial real estate concentrations decreased from 320.2% for the year ended 2023 to 298.9% for the year ended 2024;
Nonperforming assets to total loans decreased 15 basis points to 0.62% from 2023;
Loan to deposit ratio decreased to 89.3% as of December 31, 2024 compared to 93.6% as of December 31, 2023;
Total deposits grew $414.4 million, or 4.0%, year-over-year;
Common equity tier 1 capital increased 80 bps to 11.09% as of December 31, 2024 compared to 10.29% as of December 31, 2023;
Tangible book value per common share increased 6.9%, or $1.40, during 2024 compared to 2023;
Allowance for credit losses ("ACL") to total loans increased to 1.18%, or 4 bps, from 1.14% as of December 31, 2023;
Declared quarterly cash dividend of $0.20 per share of outstanding common stock payable on February 28, 2025;.and
Named one of the "Best Companies to Work For" by the 2024 Inaugural U.S. News & World Report which evaluates companies based on quality of pay, work/life balance, and opportunities for professional development and advancement.

	Quarter to Date									Full Year
*Financial Highlights*	Q4 2024			Q3 2024			Q4 2023				2024			2023
	(Dollars in thousands, except per share data) (unaudited)
GAAP
Net income	$	24,882		$	31,001		$	3,499		$	107,241		$	108,261
Diluted EPS		0.45			0.56			0.06			1.95			1.98
Book value per common share		29.37			29.53			28.18			29.37			28.18
Return on average assets¹		0.78	%		0.96	%		0.11	%		0.85	%		0.88	%
Return on average equity¹		6.17			7.79			0.92			6.85			7.21
Net interest margin		3.20			3.30			3.31			3.26			3.49
Efficiency ratio		67.04			61.94			77.49			62.62			55.82
Non-GAAP²
Operating earnings	$	29,769		$	32,181		$	31,625		$	119,397		$	142,114
Diluted operating EPS		0.54			0.59			0.58			2.17			2.60
Tangible book value per common share		21.61			21.72			20.21			21.61			20.21
Pre-tax, pre-provision operating earnings		40,945			44,555			47,688			173,576			222,211
Pre-tax, pre-provision operating return on average assets¹		1.28	%		1.38	%		1.54	%		1.37	%		1.81	%
Pre-tax, pre-provision operating return on average loans¹		1.72			1.83			1.97			1.81			2.32
Operating return on average assets¹		0.93			1.00			1.02			0.95			1.16
Return on average tangible common equity¹		9.04			11.33			2.00			10.10			10.91
Operating return on average tangible common equity¹		10.69			11.74			12.37			11.17			14.09
Operating efficiency ratio		62.98			60.63			55.50			60.22			50.94

¹Annualized ratio.

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

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

Net Interest Income

For the three months ended December 31, 2024, net interest income before provision for credit losses was $96.1 million and net interest margin was 3.20%, compared to $100.1 million and 3.30%, respectively, for the three months ended September 30, 2024. The $3.9 million decrease, or 3.9%, in net interest income before provision for credit losses was primarily due to a $12.3 million decrease in interest income on loans primarily driven by a decrease in loan yields and average loan balances. This decrease was partially offset by a $1.1 million increase in interest income on debt securities, $6.0 million decrease in interest expense on certificates and other time deposits, $2.4 million decrease in interest expense on transaction and savings deposits during the three months ended December 31, 2024. Net interest margin decreased 10 bps from the three months ended September 30, 2024, primarily due to the decrease in loan yields during the three months ended December 31, 2024, partially offset by an increase in yields on debt securities.

Compared to the three months ended December 31, 2023, net interest income before provision for credit losses for the three months ended December 31, 2024 increased by $608 thousand, or 0.6%. The increase was primarily due to a $4.6 million increase in interest income on debt securities, a $3.7 million increase in interest income in deposits in financial institutions and fed funds sold, a $2.5 million decrease in interest expense on advances from FHLB and a $1.4 million decrease in transaction and savings deposits driven by an decrease in funding costs. The increase in net interest income was partially offset by a $10.4 million decrease in interest income on loans driven by a decrease in loan yields and average balances. Net interest margin decreased 11 bps to 3.20% for the three months ended December 31, 2024 from 3.31% for the three months ended December 31, 2023. The decrease was primarily due to the decrease in loan yields during the three months ended December 31, 2024.

Noninterest Income (Loss)

Noninterest income for the three months ended December 31, 2024 was $10.1 million, a decrease of $3.1 million, or 23.3%, compared to noninterest income of $13.1 million for the three months ended September 30, 2024. The decrease in noninterest income was primarily due to a $4.4 million loss on sales of debt securities as a result of a strategic restructuring in which we sold $188.9 million of lower-yielding AFS securities, at amortized cost, with a 3.89% average yield, and reinvested the proceeds in higher yielding AFS securities with a 5.67% average yield. The decrease was also the result of a decrease of $852 thousand of OREO income, higher amortization of our servicing assets of $829 thousand and a decrease of $681 thousands due to the change in the value of equity securities. The decrease was partially offset by an increase of $4.6 million increase in government guaranteed loan income.

Compared to the three months ended December 31, 2023, noninterest income for the three months ended December 31, 2024 increased $27.8 million, or 156.5%. The increase was primarily due to a $29.4 million loss on equity method investment income related to the write down of our equity method investment in Thrive during the three months ended December 31, 2023 with no corresponding loss recorded during the three months ended December 31, 2024. The Company has no remaining equity method investment in Thrive.

Noninterest Expense

Noninterest expense was $71.2 million for the three months ended December 31, 2024, compared to $70.1 million for the three months ended September 30, 2024, a increase of $1.1 million, or 1.6%. Changes within noninterest expenses items were nominal.

Noninterest expense was $71.2 million for the three months ended December 31, 2024, compared to $60.2 million for the three months ended December 31, 2023, an increase of $11.0 million, or 18.2%. The increase was primarily driven by a $6.8 million increase in salary and employee benefits, a $4.1 million increase in other expenses, a $1.2 million increase in data processing and software expenses, and a $951 thousand increase in marketing expenses. The increase was partially offset by a $2.1 million decrease in professional and regulatory fees.

Financial Condition

Total loans held for investment ("LHI") was $8.90 billion at December 31, 2024, a decrease of $129.4 million, compared to September 30, 2024, and a decrease of $307.4 million, or 3.3%, compared to December 31, 2023.

Total deposits were $10.75 billion at December 31, 2024, an decrease of $283.4 million compared to September 30, 2024, and an increase of $414.4 million, or 4.0%, compared to December 31, 2023. The decrease from September 30, 2024 was primarily the result of a decrease of $667.1 million in certificates and other time deposits, a decrease of $452.4 million in noninterest-bearing deposits, and a decrease of $20.4 million in correspondent money market accounts. The decrease was partially offset by a increase of $856.4 million in interest-bearing transaction, money market, and savings deposits. The increase from December 31, 2023 was primarily the result of an increase in attractive deposits which consisted of $712.8 million in interest-bearing transaction, money market, and savings deposits. The increase was partially offset by a $232.9 million decrease in certificates and other time deposits, a $38.9 million decrease in correspondent money market accounts, and a $26.6 million decrease in non-interest bearing deposits.

Credit Quality

Nonperforming assets ("NPAs") increased to $79.2 million, or 0.62% of total assets, at December 31, 2024, compared to $67.3 million, or 0.52% of total assets, at September 30, 2024. Net charge-offs compared to average loans outstanding were 21 bps for the year ended December 31, 2024, compared to 25 bps for year ended December 31, 2023.

ACL as a percentage of LHI was 1.18%, 1.21%, and 1.14% at December 31, 2024, September 30, 2024, and December 31, 2023, respectively. The Company recorded a provision for credit losses of $2.3 million for the three months ended December 31, 2024, compared to a provision for credit losses of $4.0 million and $9.5 million for the three months ended September 30, 2024 and December 31, 2023, respectively. The recorded provision for credit losses reported for the three months ended December 31, 2024, compared to the three months ended December 31, 2023 was primarily attributable to a decrease in the overall loans held for investment balances and changes in general reserves as a result of changes in economic factors. The Company recorded a benefit for unfunded commitments of $401 thousand and $1.5 million during the three months ended December 31, 2024, and December 31, 2023, respectively. There was no provision for unfunded commitments recorded during the three months ended in September 30, 2024. The decrease in the recorded benefit for unfunded commitments during the three months ended December 31, 2024, compared to the three months ended September 30, 2024, was primarily attributable to changes in the economic factors applied to unfunded commitment balances.

Dividend Information

On January 28, 2025, 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 February 28, 2025 to stockholders of record as of the close of business on February 14, 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, operating earnings, tangible common equity to tangible assets, return on average tangible common equity, pre-tax, pre-provision operating earnings, pre-tax, pre-provision operating return on average assets, pre-tax, pre-provision operating return on average loans, diluted operating earnings per share, operating return on average assets, operating return on average tangible common equity and operating efficiency ratio. Veritex has included in this earnings release information related to these non-GAAP financial measures for the applicable periods presented. Please refer to "Reconciliation of Non-GAAP Financial Measures" after the financial highlights at the end of this earnings release for a reconciliation of these non-GAAP financial measures.

Conference Call

The Company will host an investor conference call to review the results on Wednesday, January 29, 2025 at 8:30 a.m. Central Time. Participants may pre-register for the call by visiting https://edge.media-server.com/mmc/p/8uwctr48 and will receive a unique PIN, which can be used when dialing in for the call.

Participants may also register via teleconference at:

https://register.vevent.com/register/BIf4f4afb9195448ba90575ac59fb337bc. 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. You may access the replay via webcast through the investor relations section of Veritex's website.

About Veritex Holdings, Inc.

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

Forward-Looking Statements

This earnings release includes "forward-looking statements", within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on various facts and derived utilizing assumptions, current expectations, estimates and projections and are subject to known and unknown risks, uncertainties and other factors, which change over time and are beyond our control, that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements include, without limitation, statements relating to the expected payment of Veritex's quarterly cash dividend; the impact of certain changes in Veritex's accounting policies, standards and interpretations; a continuation of recent turmoil in the banking industry, responsive measures to mitigate and manage it and related supervisory and regulatory actions and costs and Veritex's future financial performance, business and growth strategy, projected plans and objectives, as well as other projections based on macroeconomic and industry trends, which are inherently unreliable due to the multiple factors that impact broader economic and industry trends, and any such variations may be material. Statements preceded by, followed by or that otherwise include the words "believes," "expects," "anticipates," "intends," "projects," "estimates," "seeks," "targets," "outlooks," "plans" and similar expressions or future or conditional verbs such as "will," "should," "would," "may" and "could" are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing words. We refer you to the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of Veritex's Annual Report on Form 10-K for the year ended December 31, 2023 and any updates to those risk factors set forth in Veritex's Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings with the Securities and Exchange Commission ("SEC"), which are available on the SEC's website at www.sec.gov. If one or more events related to these or other risks or uncertainties materialize, or if Veritex's underlying assumptions prove to be incorrect, actual results may differ materially from what Veritex anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. Veritex does not undertake any obligation, and specifically declines any obligation, to supplement, update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by law. All forward-looking statements, expressed or implied, included in this earnings release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Veritex or persons acting on Veritex's behalf may issue.

VERITEX HOLDINGS, INC. AND SUBSIDIARIES

Financial Highlights

(Unaudited)

	For the Quarter Ended															For the Year Ended
	Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Dec 31, 2024			Dec 31, 2023
	(Dollars and shares in thousands, except per-share data)
Per Share Data (Common Stock):
Basic EPS	$	0.46		$	0.57		$	0.50		$	0.44		$	0.06		$	1.97		$	2.00
Diluted EPS		0.45			0.56			0.50			0.44			0.06			1.95			1.98
Book value per common share		29.37			29.53			28.49			28.23			28.18			29.37			28.18
Tangible book value per common share¹		21.61			21.72			20.62			20.33			20.21			21.61			20.21
Dividends paid per common share outstanding²		0.20			0.20			0.20			0.20			0.20			0.80			0.80

Common Stock Data:
Shares outstanding at period end		54,517			54,446			54,350			54,496			54,338			54,517			54,338
Weighted average basic shares outstanding for the period		54,489			54,409			54,457			54,444			54,327			54,450			54,256
Weighted average diluted shares outstanding for the period		55,237			54,932			54,823			54,842			54,691			54,958			54,596

Summary of Credit Ratios:
ACL to total LHI		1.18	%		1.21	%		1.16	%		1.15	%		1.14	%		1.18	%		1.14	%
NPAs to total assets		0.62			0.52			0.65			0.82			0.77			0.62			0.77
NPAs to total loans and OREO		0.83			0.70			0.85			1.06			1.00			0.83			1.00
Net charge-offs to average loans outstanding³		0.32			0.01			0.28			0.22			0.40			0.21			0.25

Summary Performance Ratios:
Return on average assets³		0.78	%		0.96	%		0.87	%		0.79	%		0.11	%		0.85	%		0.88	%
Return on average equity³		6.17			7.79			7.10			6.33			0.92			6.85			7.21
Return on average tangible common equity^{1, 3}		9.04			11.33			10.54			9.52			2.00			10.10			10.91
Efficiency ratio		67.04			61.94			59.11			62.45			77.49			62.62			55.82
Net interest margin		3.20			3.30			3.29			3.24			3.31			3.26			3.49

Selected Performance Metrics - Operating:
Diluted operating EPS¹	$	0.54		$	0.59		$	0.52		$	0.53		$	0.58		$	2.17		$	2.60
Pre-tax, pre-provision operating return on average assets^{1, 3}		1.28	%		1.38	%		1.42	%		1.42	%		1.54	%		1.37	%		1.81	%
Pre-tax, pre-provision operating return on average loans^{1, 3}		1.72			1.83			1.83			1.84			1.97			1.81			2.32
Operating return on average assets^1,3		0.93			1.00			0.91			0.95			1.02			0.95			1.16
Operating return on average tangible common equity^1,3		10.69			11.74			10.94			11.34			12.37			11.17			14.09
Operating efficiency ratio¹		62.98			60.63			58.41			58.73			55.50			60.22			50.94
Risk weighted assets	$	11,247,813		$	11,290,800		$	11,450,997		$	11,407,446		$	11,387,825		$	11,247,813		$	11,387,825

Veritex Holdings, Inc. Capital Ratios:
Average stockholders' equity to average total assets		12.58	%		12.31	%		12.26	%		12.43	%		12.27	%		12.40	%		12.22	%
Tangible common equity to tangible assets¹		9.54			9.37			9.14			9.02			9.18			9.54			9.18
Tier 1 capital to average assets (leverage)		10.32			10.06			10.06			10.12			10.03			10.32			10.03
Common equity tier 1 capital		11.09			10.86			10.49			10.37			10.29			11.09			10.29
Tier 1 capital to risk-weighted assets		11.36			11.13			10.75			10.63			10.56			11.36			10.56
Total capital to risk-weighted assets		13.96			13.91			13.45			13.33			13.18			13.96			13.18

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

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

³Annualized ratio for quarterly metrics.

VERITEX HOLDINGS, INC. AND SUBSIDIARIES

Financial Highlights

(In thousands)

	Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
ASSETS
Cash and due from banks	$	52,486		$	54,165		$	53,462		$	41,884		$	58,914
Interest bearing deposits in other banks		802,714			1,046,625			598,375			698,885			570,149
Cash and cash equivalents	$	855,200		$	1,100,790		$	651,837		$	740,769		$	629,063
Debt securities, net		1,478,538			1,423,610			1,349,354			1,344,930			1,257,042
Other investments		69,638			71,257			75,885			76,788			76,238
Loans held for sale ("LHFS")		89,309			48,496			57,046			64,762			79,072
LHI, mortgage warehouse ("MW")		605,411			630,650			568,047			449,531			377,796
LHI, excluding MW		8,899,133			9,028,575			9,209,094			9,249,551			9,206,544
Total loans		9,593,853			9,707,721			9,834,187			9,763,844			9,663,412
ACL		(111,745	)		(117,162	)		(113,431	)		(112,032	)		(109,816	)
Bank-owned life insurance		85,324			84,776			84,233			85,359			84,833
Bank premises, furniture and equipment, net		113,480			114,202			105,222			105,299			105,727
Other real estate owned ("OREO")		24,737			9,034			24,256			18,445			—
Intangible assets, net of accumulated amortization		28,664			32,825			35,817			38,679			41,753
Goodwill		404,452			404,452			404,452			404,452			404,452
Other assets		226,200			211,471			232,518			241,863			241,633
Total assets	$	12,768,341		$	13,042,976		$	12,684,330		$	12,708,396		$	12,394,337
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest-bearing deposits	$	2,191,457		$	2,643,894		$	2,416,727		$	2,349,211		$	2,218,036
Interest-bearing transaction and savings deposits		5,061,157			4,204,708			3,979,454			4,220,114			4,348,385
Certificates and other time deposits		2,958,861			3,625,920			3,744,596			3,486,805			3,191,737
Correspondent money market deposits		541,117			561,489			584,067			597,690			580,037
Total deposits		10,752,592			11,036,011			10,724,844			10,653,820			10,338,195
Accounts payable and other liabilities		183,944			168,415			180,585			186,027			195,036
Advances from FHLB		—			—			—			100,000			100,000
Subordinated debentures and subordinated notes		230,736			230,536			230,285			230,034			229,783
Total liabilities		11,167,272			11,434,962			11,135,714			11,169,881			10,863,014
Commitments and contingencies
Stockholders' equity:
Common stock		613			613			612			611			610
Additional paid-in capital		1,328,748			1,324,929			1,321,995			1,319,144			1,317,516
Retained earnings		507,903			493,921			473,801			457,499			444,242
Accumulated other comprehensive loss		(65,076	)		(40,330	)		(76,713	)		(71,157	)		(63,463	)
Treasury stock		(171,119	)		(171,119	)		(171,079	)		(167,582	)		(167,582	)
Total stockholders' equity		1,601,069			1,608,014			1,548,616			1,538,515			1,531,323
Total liabilities and stockholders' equity	$	12,768,341		$	13,042,976		$	12,684,330		$	12,708,396		$	12,394,337

VERITEX HOLDINGS, INC. AND SUBSIDIARIES

Financial Highlights

(in thousands, except per share data)

	For the Quarter Ended													For the Year Ended
	Dec 31, 2024			Sep 30, 2024		Jun 30, 2024		Mar 31, 2024			Dec 31, 2023			Dec 31, 2024			Dec 31, 2023
	(unaudited)			(unaudited)		(unaudited)		(unaudited)			(unaudited)			(unaudited)
Interest income:
Loans, including fees	$	154,998		$	167,261	$	166,979	$	161,942		$	165,443		$	651,180		$	648,245
Debt securities		16,893			15,830		15,408		13,695			12,282			61,826			44,364
Deposits in financial institutions and Fed Funds sold		11,888			12,571		7,722		8,050			8,162			40,231			28,331
Equity securities and other investments		940			1,001		1,138		900			1,717			3,979			5,934
Total interest income		184,719			196,663		191,247		184,587			187,604			757,216			726,874
Interest expense:
Transaction and savings deposits		44,841			47,208		45,619		46,784			46,225			184,452			148,975
Certificates and other time deposits		40,279			46,230		44,811		40,492			40,165			171,812			125,409
Advances from FHLB		130			47		1,468		1,391			2,581			3,036			41,024
Subordinated debentures and subordinated notes		3,328			3,116		3,113		3,114			3,100			12,671			12,352
Total interest expense		88,578			96,601		95,011		91,781			92,071			371,971			327,760
Net interest income		96,141			100,062		96,236		92,806			95,533			385,245			399,114
Provision for credit losses		2,300			4,000		8,250		7,500			9,500			22,050			42,512
(Benefit) provision for unfunded commitments		(401	)		—		—		(1,541	)		(1,500	)		(1,942	)		(2,041	)
Net interest income after provisions		94,242			96,062		87,986		86,847			87,533			365,137			358,643
Noninterest income:
Service charges and fees on deposit accounts		5,612			5,442		4,974		4,896			4,800			20,924			20,248
Loan fees		2,265			3,278		2,207		2,510			1,200			10,260			6,348
Loss on sales of debt securities		(4,397	)		—		—		(6,304	)		—			(10,701	)		(5,321	)
Government guaranteed loan income, net		5,368			780		1,320		2,614			4,378			10,082			19,982
Equity method investment (loss) income		—			—		—		—			(29,417	)		—			(30,589	)
Customer swap income		509			271		326		449			258			1,555			1,633
Other income		699			3,335		1,751		2,497			989			8,282			6,804
Total noninterest income (loss)		10,056			13,106		10,578		6,662			(17,792	)		40,402			19,105
Noninterest expense:
Salaries and employee benefits		37,446			37,370		32,790		33,365			30,606			140,971			122,070
Occupancy and equipment		4,633			4,789		4,585		4,677			4,670			18,684			19,351
Professional and regulatory fees		5,564			4,903		5,617		6,053			7,626			22,137			26,166
Data processing and software expense		5,741			5,268		5,097		4,856			4,569			20,962			18,539
Marketing		2,896			2,781		1,976		1,546			1,945			9,199			8,704
Amortization of intangibles		2,437			2,438		2,438		2,438			2,438			9,751			9,838
Telephone and communications		323			335		365		261			356			1,284			1,551
Other		12,154			12,216		10,273		8,920			8,028			43,563			27,245
Total noninterest expense		71,194			70,100		63,141		62,116			60,238			266,551			233,464
Income before income tax expense		33,104			39,068		35,423		31,393			9,503			138,988			144,284
Income tax expense		8,222			8,067		8,221		7,237			6,004			31,747			36,023
Net income	$	24,882		$	31,001	$	27,202	$	24,156		$	3,499		$	107,241		$	108,261

Basic EPS	$	0.46		$	0.57	$	0.50	$	0.44		$	0.06		$	1.97		$	2.00
Diluted EPS	$	0.45		$	0.56	$	0.50	$	0.44		$	0.06		$	1.95		$	1.98
Weighted average basic shares outstanding		54,489			54,409		54,457		54,444			54,327			54,450			54,256
Weighted average diluted shares outstanding		55,237			54,932		54,823		54,842			54,691			54,958			54,596

VERITEX HOLDINGS, INC. AND SUBSIDIARIES

Financial Highlights

(Unaudited)

	For the Quarter Ended
	December 31, 2024							September 30, 2024							December 31, 2023
	Average Outstanding Balance			Interest Earned/ Interest Paid		Average Yield/ Rate		Average Outstanding Balance			Interest Earned/ Interest Paid		Average Yield/ Rate		Average Outstanding Balance			Interest Earned/ Interest Paid		Average Yield/ Rate
	(Dollars in thousands)
Assets
Interest-earning assets:
Loans¹	$	8,957,193		$	147,782	6.56	%	$	9,184,182		$	159,163	6.89	%	$	9,280,439		$	161,021	6.88	%
LHI, MW		492,372			7,216	5.83			477,592			8,098	6.75			301,345			4,422	5.82
Debt securities		1,458,057			16,893	4.61			1,384,835			15,830	4.55			1,188,776			12,282	4.10
Interest-earning deposits in other banks		971,451			11,888	4.87			924,685			12,571	5.41			587,929			8,162	5.51
Equity securities and other investments		72,223			940	5.18			75,884			1,001	5.25			82,271			1,717	8.28
Total interest-earning assets		11,951,296			184,719	6.15			12,047,178			196,663	6.49			11,440,760			187,604	6.51
ACL		(117,293	)						(115,510	)						(111,937	)
Noninterest-earning assets		916,969							930,250							977,811
Total assets	$	12,750,972						$	12,861,918						$	12,306,634

Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Interest-bearing demand and savings deposits	$	5,001,159			44,841	3.57	%	$	4,700,196		$	47,208	4.00	%	$	4,547,911			46,225	4.03	%
Certificates and other time deposits		3,319,628			40,279	4.83			3,678,718			46,230	5.00			3,285,164			40,165	4.85
Advances from FHLB and Other		10,598			130	4.88			3,261			47	5.73			182,935			2,581	5.60
Subordinated debentures and subordinated notes		230,633			3,328	5.74			230,393			3,116	5.38			229,648			3,100	5.36
Total interest-bearing liabilities		8,562,018			88,578	4.12			8,612,568			96,601	4.46			8,245,658			92,071	4.43

Noninterest-bearing liabilities:
Noninterest-bearing deposits		2,400,809							2,486,676							2,322,555
Other liabilities		183,810							179,273							228,135
Total liabilities		11,146,637							11,278,517							10,796,348
Stockholders' equity		1,604,335							1,583,401							1,510,286
Total liabilities and stockholders' equity	$	12,750,972						$	12,861,918						$	12,306,634

Net interest rate spread²						2.03	%						2.03	%						2.08	%
Net interest income and margin³				$	96,141	3.20	%				$	100,062	3.30	%				$	95,533	3.31	%

¹Includes average outstanding balances of LHFS of $46.4 million, $54.3 million and $31.2 million for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively, and average balances of LHI, excluding MW.

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

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

VERITEX HOLDINGS, INC. AND SUBSIDIARIES

Financial Highlights

(Unaudited)

	For the Year Ended December 31,
		2024							2023
	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	$	9,191,753		$	624,853	6.80	%	$	9,244,070		$	628,122	6.79	%
LHI, MW		417,985			26,327	6.30			347,596			20,123	5.79
Debt securities		1,372,812			61,826	4.50			1,173,880			44,364	3.78
Interest-earning deposits in other banks		762,569			40,231	5.28			542,959			28,331	5.22
Equity securities and other investments		75,825			3,979	5.25			120,135			5,934	4.94
Total interest-earning assets		11,820,944			757,216	6.41			11,428,640			726,874	6.36
ACL		(115,259	)						(103,179	)
Noninterest-earning assets		927,178							957,286
Total assets	$	12,632,863						$	12,282,747

Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Interest-bearing demand and savings deposits	$	4,728,453			184,452	3.90		$	4,197,517			148,975	3.55
Certificates and other time deposits		3,468,448			171,812	4.95			2,977,178			125,409	4.21
Advances from FHLB and Other		55,109			3,036	5.51			873,617			41,024	4.70
Subordinated debentures and subordinated notes		230,264			12,671	5.50			229,268			12,352	5.39
Total interest-bearing liabilities		8,482,274			371,971	4.39			8,277,580			327,760	3.96

Noninterest-bearing liabilities:
Noninterest-bearing deposits		2,397,681							2,309,983
Other liabilities		186,951							193,659
Total liabilities		11,066,906							10,781,222
Stockholders' equity		1,565,957							1,501,525
Total liabilities and stockholders' equity	$	12,632,863						$	12,282,747

Net interest rate spread²						2.02	%						2.40	%
Net interest income and margin³				$	385,245	3.26	%				$	399,114	3.49	%

¹Includes average outstanding balances of LHFS of $53.3 million and $25.7 million for the twelve months ended December 31, 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.

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

VERITEX HOLDINGS, INC. AND SUBSIDIARIES

Financial Highlights

(Unaudited)

Yield Trend

	For the Quarter Ended
	Dec 31, 2024		Sep 30, 2024		Jun 30, 2024		Mar 31, 2024		Dec 31, 2023
Average yield on interest-earning assets:
Loans¹	6.56	%	6.89	%	6.90	%	6.83	%	6.88	%
LHI, MW	5.83		6.75		6.36		6.27		5.82
Total loans	6.53		6.89		6.88		6.81		6.85
Debt securities	4.61		4.55		4.58		4.25		4.10
Interest-bearing deposits in other banks	4.87		5.41		5.54		5.54		5.51
Equity securities and other investments	5.18		5.25		5.80		4.75		8.28
Total interest-earning assets	6.15	%	6.49	%	6.54	%	6.44	%	6.51	%

Average rate on interest-bearing liabilities:
Interest-bearing demand and savings deposits	3.57	%	4.00	%	4.01	%	4.06	%	4.03	%
Certificates and other time deposits	4.83		5.00		5.02		4.96		4.85
Advances from FHLB	4.88		5.73		5.54		5.54		5.60
Subordinated debentures and subordinated notes	5.74		5.38		5.44		5.45		5.36
Total interest-bearing liabilities	4.12	%	4.46	%	4.50	%	4.47	%	4.43	%

Net interest rate spread²	2.03	%	2.03	%	2.04	%	1.97	%	2.08	%
Net interest margin³	3.20	%	3.30	%	3.29	%	3.24	%	3.31	%

¹Includes average outstanding balances of LHFS of $46.4 million, $54.3 million, $58.5 million, $53.9 million and $31.2 million for the three months ended December 31, 2024, September 30, 2024, June 30, 2024, March 31, 2024 and December 31, 2023, respectively, and average balances of LHI, excluding MW.

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

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

Supplemental Yield Trend

	For the Quarter Ended										For the Year Ended
	Dec 31, 2024		Sep 30, 2024		Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Dec 31, 2024		Dec 31, 2023
Average cost of interest-bearing deposits	4.07	%	4.44	%	4.46	%	4.43	%	4.38	%	4.35	%	3.82	%
Average costs of total deposits, including noninterest-bearing	3.16		3.42		3.46		3.42		3.37		3.36		2.89

VERITEX HOLDINGS, INC. AND SUBSIDIARIES

Financial Highlights

(Unaudited)

LHI and Deposit Portfolio Composition

	Dec 31, 2024					Sep 30, 2024					Jun 30, 2024					Mar 31, 2024					Dec 31, 2023
	(In thousands, except percentages)
LHI¹
Commercial and Industrial ("C&I")	$	2,693,538		30.2	%	$	2,728,544		30.2	%	$	2,798,260		30.4	%	$	2,785,987		30.1	%	$	2,752,063		29.9	%
Real Estate:
Owner occupied commercial ("OOCRE")		780,003		8.8			807,223		8.9			806,285		8.7			788,376		8.5			794,088		8.6
Non-owner occupied commercial ("NOOCRE")		2,382,499		26.7			2,338,094		25.9			2,369,848		25.7			2,352,993		25.5			2,350,725		25.5
Construction and land		1,303,711		14.7			1,436,540		15.8			1,536,580		16.7			1,568,257		16.9			1,734,254		18.8
Farmland		31,690		0.4			32,254		0.4			30,512		0.3			30,979		0.3			31,114		0.3
1-4 family residential		957,341		10.7			944,755		10.5			917,402		10.0			969,401		10.5			937,119		10.2
Multi-family residential		750,218		8.4			738,090		8.2			748,740		8.1			751,607		8.1			605,817		6.6
Consumer		9,115		0.1			11,292		0.1			9,245		0.1			8,882		0.1			10,149		0.1
Total LHI¹	$	8,908,115		100	%	$	9,036,792		100	%	$	9,216,872		100	%	$	9,256,482		100	%	$	9,215,329		100	%

MW		605,411					630,650					568,047					449,531					377,796

Total LHI¹	$	9,513,526				$	9,667,442				$	9,784,919				$	9,706,013				$	9,593,125

Total LHFS		89,309					48,496					57,046					64,762					79,072

Total loans	$	9,602,835				$	9,715,938				$	9,841,965				$	9,770,775				$	9,672,197

Deposits
Noninterest-bearing	$	2,191,457		20.4	%	$	2,643,894		24.0	%	$	2,416,727		22.5	%	$	2,349,211		22.1	%	$	2,218,036		21.5	%
Interest-bearing transaction		839,005		7.8			421,059		3.8			523,272		4.9			724,171		6.8			927,193		8.9
Money market		3,772,964		35.1			3,462,709		31.4			3,268,286		30.5			3,326,742		31.2			3,284,324		31.8
Savings		449,188		4.2			320,940		2.9			187,896		1.8			169,201		1.6			136,868		1.3
Certificates and other time deposits		2,958,861		27.5			3,625,920		32.8			3,744,596		34.9			3,486,805		32.7			3,191,737		30.9
Correspondent money market account		541,117		5.0			561,489		5.1			584,067		5.4			597,690		5.6			580,037		5.6
Total deposits	$	10,752,592		100	%	$	11,036,011		100	%	$	10,724,844		100	%	$	10,653,820		100	%	$	10,338,195		100	%

Total loans to total deposits ratio		89.3	%				88.0	%				91.8	%				91.7	%				93.6	%

Total loans to Deposit Ratio, excluding MW loans and LHFS		82.8	%				81.9	%				85.9	%				86.9	%				89.1	%

¹ Total LHI does not include deferred costs of $9.0 million, $8.2 million, $7.8 million, $6.9 million and $8.8 million at December 31, 2024, September 30, 2024, June 30, 2024, March 31, 2024 and December 31, 2023, respectively.

VERITEX HOLDINGS, INC. AND SUBSIDIARIES

Financial Highlights

(Unaudited)

Asset Quality

	For the Quarter Ended										For the Year Ended
	Dec 31, 2024		Sep 30, 2024		Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Dec 31, 2024		Dec 31, 2023
	(In thousands, except percentages)
NPAs:
Nonaccrual loans	$	52,521	$	55,335	$	58,537	$	75,721	$	79,133	$	52,521	$	79,133
Nonaccrual PCD loans¹		—		70		73		9,419		13,715		—		13,715
Accruing loans 90 or more days past due²		1,914		2,860		143

Veritex Holdings, Inc. Reports Fourth Quarter and Full Year 2024 Results