DALLAS, July 27, 2022 (GLOBE NEWSWIRE) -- Veritex Holdings, Inc. ("Veritex", the "Company", "we" or "our") (NASDAQ:VBTX), the holding company for Veritex Community Bank, today announced the results for the quarter ended June 30, 2022.

"The second quarter of 2022 was another exceptional quarter for our Company, reporting 1.76% in PTPP operating return," said President and CEO, C. Malcolm C. Holland, III. "We have remained and will remain focused on the positive momentum we have created by investing in talent and focus on scale in two of the strongest and most resilient markets in the U.S."

	Quarter to Date						Year to Date
*Financial Highlights*	Q2 2022			Q1 2022			Q2 2022			Q2 2021
	(Dollars in thousands, except per share data) (unaudited)
GAAP
Net income	$	29,626		$	33,470		$	63,096		$	61,243
Diluted EPS		0.54			0.65			1.19			1.22
Book value per common share		26.50			26.86			26.50			25.72
Return on average assets²		1.11	%		1.36	%		1.23	%		1.35	%
Efficiency ratio		50.76			52.84			51.76			51.01
Return on average equity²		8.21			10.00			9.07			9.96
Non-GAAP¹
Operating earnings	$	29,855		$	34,014		$	63,869		$	62,165
Diluted operating EPS		0.55			0.66			1.20			1.24
Tangible book value per common share		18.20			18.51			18.20			17.16
Pre-tax, pre-provision operating earnings		47,000			42,265			89,265			78,707
Pre-tax, pre-provision operating return on average assets²		1.76	%		1.71	%		1.74	%		1.74	%
Operating return on average assets²		1.12			1.38			1.24			1.37
Operating efficiency ratio		50.45			52.05			51.22			50.62
Return on average tangible common equity²		12.68			15.84			14.17			16.15
Operating return on average tangible common equity²		12.77			16.08			14.34			16.38

¹Refer 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.

²Annualized ratio.

Other Second Quarter Highlights

Pre-tax, pre-provision operating return on average assets increased 5 bps from the first quarter of 2022 to 1.76%;
Non-performing assets ("NPAs") to total assets decreased to 0.40%, or 6 bps from March 31, 2022, and decreased to 0.40% or 45 bps from June 30, 2021, respectively;
Net charge-offs to average loans outstanding of 1 basis point for the second quarter of 2022;
Net interest margin increased to 3.42%, up 20 basis points from the first quarter of 2022;
Total loans held for investment ("LHI"), excluding mortgage warehouse ("MW") and paycheck protection program ("PPP") loans, grew $790.4 million, or 44.4% annualized, during the three months ended June 30, 2022 from $7.1 billion at the end of the first quarter of 2022;
Total deposits grew $628.1 million, or 31.8% annualized, during the three months ended June 30, 2022 from $7.9 billion at the end of the first quarter of 2022; and
Declared quarterly cash dividend of $0.20 per share of outstanding common stock payable on August 26, 2022.

Results of Operations for the Three Months Ended June 30, 2022

Net Interest Income

For the three months ended June 30, 2022, net interest income before provision for credit losses was $84.5 million and net interest margin was 3.42% compared to $73.0 million and 3.22%, respectively, for the three months ended March 31, 2022. The $11.4 million increase in net interest income before provision for credit losses was primarily due to a $10.7 million increase in interest income on loans driven by an increase in average balances and loan yields during the three months ended June 30, 2022. Net interest margin increased 20 basis points compared to the three months ended March 31, 2022, primarily due to the increase in yields earned on loans during three months ended June 30, 2022.

Compared to the three months ended June 30, 2021, net interest income before provision for credit losses for the three months ended June 30, 2022 increased by $17.3 million, or 25.8%. The increase was primarily due to a $14.4 million increase in interest income on loans driven by an increase in average balances. The average cost of interest-bearing deposits increased 8 basis points to 0.43% for the three months ended June 30, 2022 from 0.35% for the three months ended June 30, 2021.

Noninterest Income

Noninterest income for the three months ended June 30, 2022 was $10.4 million, a decrease of $4.7 million, or 31.3%, compared to the three months ended March 31, 2022. The decrease was primarily due to a $4.1 million decrease in government guaranteed loan income, net.

Compared to the three months ended June 30, 2021, noninterest income for the three months ended June 30, 2022 decreased by $2.1 million, or 16.7%. The decrease was primarily due to a $2.7 million decrease in government guaranteed loan income, net.

Noninterest Expense

Noninterest expense was $48.2 million for the three months ended June 30, 2022, compared to $46.6 million for the three months ended March 31, 2022, an increase of $1.6 million, or 3.4%. This increase was primarily due to a $1.1 million increase in marketing expenses.

Compared to the three months ended June 30, 2021, noninterest expense for the three months ended June 30, 2022 increased by $6.4 million, or 15.4%. The increase was primarily driven by a $3.5 million increase in salaries and employee benefits as a result of a $3.3 million increase in salaries resulting from continued investment in talent.

Financial Condition

Total LHI, excluding MW and PPP loans, were $7.9 billion at June 30, 2022, an increase of $790.4 million, or 44.4% annualized, compared to March 31, 2022. The increase was the result of the continued execution, and success of our loan growth strategy, including our investment in talent.

Total deposits were $8.5 billion at June 30, 2022, an increase of $628.1 million, or 31.8% annualized, compared to March 31, 2022. The increase was primarily the result of an increase of $319.0 million in interest-bearing transaction and savings deposits, an increase of $181.9 million in noninterest-bearing demand deposits, and an increase of $127.2 million in certificates and other time deposits.

Asset Quality

Nonperforming assets totaled $45.0 million, or 0.40% of total assets at June 30, 2022, compared to $48.0 million, or 0.46% of total assets at March 31, 2022. The Company had net charge-offs of $909 thousand for the quarter, which were fully reserved against in prior quarters under our allowance for credit loss ("ACL") model.

The Company recorded a provision for credit losses of $9.0 million for the three months ended June 30, 2022, a $500 thousand benefit for credit losses for the three months ended March 31, 2022 and no provision for credit losses for the three months ended June 30, 2021. The recorded provision for credit losses for the three months ended June 30, 2022, compared to the three months ended March 31, 2022, was primarily attributable to an increase in general reserves as a result of loan growth. For the three months ended June 30, 2022, we recorded no provision for unfunded commitments, which was attributable to stable unfunded balances. ACL as a percentage of LHI, excluding MW and PPP loans, was 1.02%, 1.02% and 1.59% at June 30, 2022, March 31, 2022 and June 30, 2021, respectively.

Dividend Information

On July 27, 2022, 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 26, 2022 to stockholders of record as of the close of business on August 12, 2022.

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, diluted operating earnings per share, operating return on average assets, operating return on average tangible common equity and operating efficiency ratio. Veritex has included in this earnings release information related to these non-GAAP financial measures for the applicable periods presented. Please refer to "Reconciliation of Non-GAAP Financial Measures" after the financial highlights at the end of this earnings release for a reconciliation of these non-GAAP financial measures.

Conference Call

The Company will host an investor conference call and webcast to review the results on Wednesday, July 27, 2022, at 8:30 a.m. Central Time. Participants may pre-register for the call by visiting https://edge.media-server.com/mmc/p/r7rx63qg 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/BI70101fb149e640b7a111c50ba9b1bef1. 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 Veritex Holdings, Inc.'s ("Veritex") proposed acquisition of interLINK, including the expected timing of the completion of the acquisition, the ability to complete the acquisition, the ability to obtain any required regulatory or other approvals, authorizations or consents in connection with the acquisition, disruption from the acquisition making it more difficult to maintain relationships with employees, customers or other parties with whom Veritex or interLINK have business relationships, diversion of management time on acquisition-related issues, the reaction to the acquisition of the companies' customers, employees and counterparties, any statements regarding the plans and objectives of management for future operations, products or services arising from the acquisition, including integration plans, and the treatment of certain deposits via interLINK as not being brokered deposits for any supervisory purpose; the expected payment date of Veritex's quarterly cash dividend; the impact of certain changes in Veritex's accounting policies, standards and interpretations; the effects of the COVID-19 pandemic and actions taken in response thereto; 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, 2021 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 Six Months Ended
	Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Jun 30, 2022			Jun 30, 2021
	(Dollars and shares in thousands)
Per Share Data (Common Stock):
Basic EPS	$	0.55		$	0.66		$	0.84		$	0.75		$	0.60		$	1.21		$	1.24
Diluted EPS		0.54			0.65			0.82			0.73			0.59			1.19			1.22
Book value per common share		26.50			26.86			26.64			26.09			25.72			26.50			25.72
Tangible book value per common share¹		18.20			18.51			17.49			17.53			17.16			18.20			17.16
Dividends paid per common share outstanding²		0.20			0.20			0.20			0.20			0.20			0.40			0.37

Common Stock Data:
Shares outstanding at period end		53,951			53,907			49,372			49,229			49,498			53,951			49,498
Weighted average basic shares outstanding for the period		53,949			50,695			49,329			49,423			49,476			52,331			49,435
Weighted average diluted shares outstanding for the period		54,646			51,571			50,441			50,306			50,331			53,121			50,187

Summary of Credit Ratios:
ACL to total LHI, excluding MW and PPP loans		1.02	%		1.02	%		1.15	%		1.42	%		1.59	%		1.02	%		1.59	%
NPAs to total assets		0.40			0.46			0.51			0.77			0.85			0.40			0.85
Net charge-offs to average loans outstanding		0.01			0.07			0.19			0.09			0.09			0.08			0.09

Summary Performance Ratios:
Return on average assets³		1.11			1.36			1.68			1.56			1.27			1.23			1.35
Return on average equity³		8.21			10.00			12.65			11.32			9.42			9.07			9.96
Return on average tangible common equity^{1, 3}		12.68			15.84			20.06			17.72			15.18			14.17			16.15
Efficiency ratio		50.76			52.84			48.53			47.55			52.42			51.76			51.01
Net interest margin		3.42			3.22			3.37			3.26			3.11			3.32			3.16

Selected Performance Metrics - Operating:
Diluted operating EPS¹	$	0.55		$	0.66		$	0.84		$	0.70		$	0.60		$	1.20		$	1.24
Pre-tax, pre-provision operating return on average assets^{1, 2}		1.76	%		1.71	%		1.97	%		1.85	%		1.66	%		1.74	%		1.74	%
Operating return on average assets^{1, 3}		1.12			1.38			1.72			1.48			1.29			1.24			1.37
Operating return on average tangible common equity^{1, 3}		12.77			16.08			20.48			16.92			15.42			14.34			16.38
Operating efficiency ratio¹		50.45			52.05			47.64			48.51			51.63			51.22			50.62

Veritex Holdings, Inc. Capital Ratios:
Average stockholders' equity to average total assets		13.51	%		13.58	%		13.30	%		13.75	%		13.46	%		13.54	%		13.57	%
Tangible common equity to tangible assets¹		9.04			9.98			9.28			9.43			9.51			9.04			9.51
Tier 1 capital to average assets (leverage)		10.14			10.66			9.05			9.54			9.38			10.14			9.38
Common equity tier 1 capital		9.25			9.84			8.58			8.75			9.03			9.25			9.03
Tier 1 capital to risk-weighted assets		9.52			10.14			8.89			9.06			9.36			9.52			9.36
Total capital to risk-weighted assets		11.95			12.73			11.60			12.31			12.86			11.95			12.86

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)

	Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021
	(unaudited)			(unaudited)						(unaudited)			(unaudited)
ASSETS
Cash and cash equivalents	$	410,716		$	551,573		$	379,784		$	229,712		$	390,027
Debt Securities		1,354,403			1,244,514			1,052,494			1,103,745			1,125,877
Other investments		202,685			188,699			190,591			191,786			87,558

Loans held for sale		14,210			18,721			26,007			18,896			12,065
LHI, PPP loans, carried at fair value		7,339			18,512			53,369			135,842			291,401
LHI, MW		629,291			542,877			565,645			615,045			559,939
LHI, excluding MW and PPP		7,915,792			7,125,429			6,766,009			6,615,905			6,272,087
Total loans		8,566,632			7,705,539			7,411,030			7,385,688			7,135,492
ACL		(80,576	)		(72,485	)		(77,754	)		(93,771	)		(99,543	)
Bank-owned life insurance		84,097			83,641			83,194			83,781			83,304
Bank premises, furniture and equipment, net		108,769			109,138			109,271			116,063			123,504
Other real estate owned ("OREO")		1,032			1,062			—			—			2,467
Intangible assets, net of accumulated amortization		59,011			63,986			66,017			54,682			57,143
Goodwill		404,452			404,452			403,771			370,840			370,840
Other assets		193,590			173,561			138,851			129,774			72,856
Total assets	$	11,304,811		$	10,453,680		$	9,757,249		$	9,572,300		$	9,349,525
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest-bearing deposits	$	2,947,830		$	2,765,895		$	2,510,723		$	2,302,925		$	2,388,068
Interest-bearing transaction and savings deposits		4,007,250			3,688,292			3,276,312			3,228,306			3,112,974
Certificates and other time deposits		1,562,626			1,435,409			1,576,580			1,647,521			1,477,860
Total deposits		8,517,706			7,889,596			7,363,615			7,178,752			6,978,902
Accounts payable and other liabilities		126,116			105,552			69,160			66,571			55,499
Advances from Federal Home Loan Bank ("FHLB")		1,000,000			777,522			777,562			777,601			777,640
Subordinated debentures and subordinated notes		228,272			228,018			227,764			262,761			262,766
Securities sold under agreements to repurchase		3,275			4,996			4,069			2,455			1,811
Total liabilities		9,875,369			9,005,684			8,442,170			8,288,140			8,076,618
Commitments and contingencies
Stockholders' equity:
Common stock		606			605			560			559			558
Additional paid-in capital		1,300,170			1,297,161			1,142,758			1,137,889			1,134,603
Retained earnings		317,664			298,830			275,273			243,633			216,704
Accumulated other comprehensive (loss) income		(21,416	)		18,982			64,070			69,661			77,189
Treasury stock		(167,582	)		(167,582	)		(167,582	)		(167,582	)		(156,147	)
Total stockholders' equity		1,429,442			1,447,996			1,315,079			1,284,160			1,272,907
Total liabilities and stockholders' equity	$	11,304,811		$	10,453,680		$	9,757,249		$	9,572,300		$	9,349,525

VERITEX HOLDINGS, INC. AND SUBSIDIARIES

Financial Highlights

(In thousands, except per share data)

	For the Quarter Ended													For the Six Months Ended
	Jun 30, 2022		Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021		Jun 30, 2022		Jun 30, 2021
Interest income:
Loans, including fees	$	82,191	$	71,443		$	74,174		$	71,139		$	67,814	$	153,634	$	135,213
Debt securities		9,632		7,762			9,553			7,613			7,529		17,394		14,966
Deposits in financial institutions and Fed Funds sold		714		262			165			130			167		976		294
Equity securities and other investments		1,057		910			1,004			898			672		1,967		1,335
Total interest income		93,594		80,377			84,896			79,780			76,182		173,971		151,808
Interest expense:
Transaction and savings deposits		4,094		1,751			1,629			1,588			1,661		5,845		3,641
Certificates and other time deposits		1,465		1,380			1,661			1,934			2,423		2,845		5,484
Advances from FHLB		834		1,547			1,847			1,848			1,829		2,381		3,641
Subordinated debentures and subordinated notes		2,721		2,659			3,018			3,134			3,138		5,380		6,276
Total interest expense		9,114		7,337			8,155			8,504			9,051		16,451		19,042
Net interest income		84,480		73,040			76,741			71,276			67,131		157,520		132,766
Provision (benefit) for credit losses		9,000		(500	)		(3,349	)		—			—		8,500		—
Provision (benefit) for unfunded commitments		—		493			(1,040	)		(448	)		577		493		7
Net interest income after provisions		75,480		73,047			81,130			71,724			66,554		148,527		132,759
Noninterest income:
Service charges and fees on deposit accounts		5,039		4,710			4,782			4,484			3,847		9,749		7,476
Loan fees		2,385		2,794			2,697			1,746			1,823		5,179		3,164
Loss on sales of investment securities		—		—			—			(188	)		—		—		—
Gain on sales of mortgage loans held for sale		223		307			293			407			385		530		892
Government guaranteed loan income, net		789		4,891			3,423			2,341			3,448		5,680		9,996
Equity method investment income		966		367			1,238			4,522			—		1,333		—
Other		976		2,028			3,717			2,315			2,953		3,004		5,100
Total noninterest income		10,378		15,097			16,150			15,627			12,456		25,475		26,628
Noninterest expense:
Salaries and employee benefits		26,924		27,513			25,401			22,964			23,451		54,437		46,383
Occupancy and equipment		4,496		4,517			4,398			4,536			4,233		9,013		8,329
Professional and regulatory fees		2,865		3,158			3,017			3,401			3,086		6,023		6,527
Data processing and software expense		3,386		2,921			2,597			2,494			2,536		6,307		4,855
Marketing		2,306		1,187			1,443			1,151			1,841		3,493		2,750
Amortization of intangibles		2,495		2,495			2,494			2,509			2,517		4,990		5,054
Telephone and communications		352		385			380			380			337		737		674
Merger and acquisition ("M&A") expense		295		700			826			—			—		995		—
Other		5,034		3,696			4,521			3,886			3,716		8,730		6,742
Total noninterest expense		48,153		46,572			45,077			41,321			41,717		94,725		81,314
Income before income tax expense		37,705		41,572			52,203			46,030			37,293		79,277		78,073
Income tax expense		8,079		8,102			10,697			9,195			7,837		16,181		16,830
Net income	$	29,626	$	33,470		$	41,506		$	36,835		$	29,456	$	63,096	$	61,243
Net income available to common stockholders	$	29,626	$	33,470		$	41,506		$	36,835		$	29,456	$	63,096	$	61,243

Basic EPS	$	0.55	$	0.66		$	0.84		$	0.75		$	0.60	$	1.21	$	1.24
Diluted EPS	$	0.54	$	0.65		$	0.82		$	0.73		$	0.59	$	1.19	$	1.22
Weighted average basic shares outstanding		53,949		50,695			49,329			49,423			49,476		52,331		49,435
Weighted average diluted shares outstanding		54,646		51,571			50,441			50,306			50,331		53,121		50,187

VERITEX HOLDINGS, INC. AND SUBSIDIARIES

Financial Highlights

(Unaudited)

	For the Quarter Ended
	June 30, 2022							March 31, 2022							June 30, 2021
	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
	(In thousands, expect percentages)
Assets
Interest-earning assets:
Loans¹	$	7,547,564		$	78,234	4.16	%	$	6,872,943		$	68,297	4.03	%	$	6,108,527		$	63,427	4.16	%
LHI, MW		479,187			3,929	3.29			421,680			3,069	2.95			455,334			3,476	3.06
PPP loans		11,402			28	1.00			31,335			77	1.00			364,020			911	1.00
Debt securities		1,318,502			9,632	2.93			1,140,834			7,762	2.76			1,095,678			7,529	2.76
Interest-bearing deposits in other banks		369,847			714	0.77			554,864			262	0.19			548,087			167	0.12
Equity securities and other investments		167,327			1,057	2.53			190,002			910	1.94			87,413			672	3.08
Total interest-earning assets		9,893,829			93,594	3.79			9,211,658			80,377	3.54			8,659,059			76,182	3.53
ACL		(74,268	)						(77,843	)						(105,050	)
Noninterest-earning assets		892,102							865,107							767,270
Total assets	$	10,711,663						$	9,998,922						$	9,321,279

Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Interest-bearing demand and savings deposits	$	3,770,098		$	4,094	0.44	%	$	3,471,645		$	1,751	0.20	%	$	3,191,405		$	1,661	0.21	%
Certificates and other time deposits		1,459,690			1,465	0.40			1,501,852			1,380	0.37			1,515,092			2,423	0.64
Advances from FHLB		828,769			834	0.40			777,538			1,547	0.81			777,655			1,829	0.94
Subordinated debentures and subordinated notes		232,043			2,721	4.70			231,875			2,659	4.65			264,931			3,138	4.75
Total interest-bearing liabilities		6,290,600			9,114	0.58			5,982,910			7,337	0.50			5,749,083			9,051	0.63

Noninterest-bearing liabilities:
Noninterest-bearing deposits		2,870,692							2,591,504							2,266,470
Other liabilities		102,994							67,060							51,355
Total liabilities		9,264,286							8,641,474							8,066,908
Stockholders' equity		1,447,377							1,357,448							1,254,371
Total liabilities and stockholders' equity	$	10,711,663						$	9,998,922						$	9,321,279

Net interest rate spread²						3.21	%						3.04	%						2.90	%
Net interest income and margin³					84,480	3.42	%					73,040	3.22	%					67,131	3.11	%

¹ Includes average outstanding balances of loans held for sale of $12,112, $12,769 and $14,364 for the three months ended June 30, 2022, March 31, 2022, and June 30, 2021, respectively, and average balances of LHI, excluding MW and PPP loans.

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

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

VERITEX HOLDINGS, INC. AND SUBSIDIARY

Financial Highlights

(In thousands except percentages)

	Six Months Ended
	June 30, 2022							June 30, 2021
	Average Outstanding Balance			Interest Earned/ Interest Paid		Average Yield/ Rate		Average Outstanding Balance			Interest Earned/ Interest Paid		Average Yield/ Rate
Assets
Interest-earning assets:
Loans¹	$	7,205,954		$	146,500	4.10	%	$	6,003,754		$	126,128	4.24	%
LHI, WH		450,592			6,998	3.13			482,853			7,292	3.05
PPP loans		27,477			136	1.00			360,209			1,793	1.00
Debt securities		1,230,159			17,394	2.85			1,079,697			14,966	2.80
Interest-bearing deposits in other banks		461,844			976	0.43			445,356			294	0.13
Equity securities and other investments		178,602			1,967	2.22			87,296			1,335	3.08
Total interest-earning assets		9,554,628			173,971	3.67			8,459,165			151,808	3.62
ACL		(76,046	)						(105,509	)
Noninterest-earning assets		878,679							778,691
Total assets	$	10,357,261						$	9,132,347

Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Interest-bearing demand and savings deposits	$	3,621,697		$	5,845	0.33	%	$	3,115,417		$	3,641	0.24	%
Certificates and other time deposits		1,480,654			2,845	0.39			1,512,479			5,484	0.73
Advances from FHLB		803,295			2,381	0.60			777,675			3,641	0.94
Subordinated debentures and subordinated notes		231,959			5,380	4.68			265,142			6,276	4.77
Total interest-bearing liabilities		6,137,605			16,451	0.54			5,670,713			19,042	0.68

Noninterest-bearing liabilities:
Noninterest-bearing deposits		2,731,869							2,168,396
Other liabilities		85,126							53,823
Total liabilities		8,954,600							7,892,932
Stockholders' equity		1,402,661							1,239,415
Total liabilities and stockholders' equity	$	10,357,261						$	9,132,347

Net interest rate spread²						3.13	%						2.94	%
Net interest income and margin³				$	157,520	3.32	%				$	132,766	3.16	%

¹ Includes average outstanding balances of loans held for sale of $12,440 and $15,476 for the six months ended June 30, 2022 and June 30, 2021, respectively, and average balances of LHI, excluding MW and PPP loans.

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

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

VERITEX HOLDINGS, INC. AND SUBSIDIARIES

Financial Highlights

Yield Trend

	For the Quarter Ended
	Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021
Average yield on interest-earning assets:
Loans¹	4.16	%	4.03	%	4.12	%	4.16	%	4.16	%
LHI, MW	3.29		2.95		2.98		3.15		3.06
PPP loans	1.00		1.00		1.00		1.00		1.00
Debt securities	2.93		2.76		3.47		2.70		2.76
Interest-bearing deposits in other banks	0.77		0.19		0.16		0.15		0.12
Equity securities and other investments	2.53		1.94		2.09		2.13		3.08
Total interest-earning assets	3.79	%	3.54	%	3.72	%	3.64	%	3.53	%

Average rate on interest-bearing liabilities:
Interest-bearing demand and savings deposits	0.44	%	0.20	%	0.19	%	0.20	%	0.21	%
Certificates and other time deposits	0.40		0.37		0.41		0.50		0.64
Advances from FHLB	0.40		0.81		0.94		0.94		0.94
Subordinated debentures and subordinated notes	4.70		4.65		4.62		4.70		4.75
Total interest-bearing liabilities	0.58	%	0.50	%	0.54	%	0.59	%	0.63	%

Net interest rate spread²	3.21	%	3.04	%	3.18	%	3.05	%	2.90	%
Net interest margin³	3.42	%	3.22	%	3.37	%	3.26	%	3.11	%

¹Includes average outstanding balances of loans held for sale of $12,112, $12,769, $8,987, $8,542 and $14,364 for the three months ended June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021 and June 30, 2021, respectively, and average balances of LHI, excluding MW and PPP loans.

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
	Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021
Average cost of interest-bearing deposits	0.43	%	0.26	%	0.26	%	0.30	%	0.35	%
Average costs of total deposits, including noninterest-bearing	0.28		0.17		0.18		0.20		0.23

VERITEX HOLDINGS, INC. AND SUBSIDIARIES

Financial Highlights

(Unaudited)

LHI and Deposit Portfolio Composition

	Jun 30, 2022					Mar 31, 2022					Dec 31, 2021					Sep 30, 2021					Jun 30, 2021
	(In thousands, expect percentages)
LHI¹
Commercial	$	2,450,403		30.9	%	$	2,125,900		29.8	%	$	2,006,876		29.6	%	$	1,793,740		27.1	%	$	1,771,100		28.2	%
Real Estate:
Owner occupied commercial ("OOCRE")		646,723		8.2			633,615		8.9			665,537		9.8			711,476		10.7			744,899		11.9
Non-owner occupied commercial ("NOOCRE")		2,203,970		27.8			2,145,826		30.0			2,120,309		31.3			2,194,438		33.1			1,986,538		31.6
Construction and land		1,532,997		19.3			1,297,338		18.2			1,062,144		15.7			936,174		14.1			871,765		13.9
Farmland		47,319		0.6			48,095		0.7			55,827		0.8			73,550		1.1			13,661		0.2
1-4 family residential		765,260		9.6			604,408		8.5			542,566		8.0			543,518		8.2			513,635		8.2
Multi-family residential		276,632		3.5			272,250		3.8			310,241		4.6			356,885		5.4			367,445		5.9
Consumer		7,520		0.1			9,533		0.1			11,998		0.2			14,266		0.3			10,530		0.1
Total LHI	$	7,930,824		100	%	$	7,136,965		100	%	$	6,775,498		100	%	$	6,624,047		100	%	$	6,279,573		100	%

MW		629,291					542,877					565,645					615,045					559,939
PPP loans		7,339					18,512					53,369					135,842					291,401

Total LHI¹	$	8,567,454				$	7,698,354				$	7,394,512				$	7,374,934				$	7,130,913

Deposits
Noninterest-bearing	$	2,947,830		34.6	%	$	2,765,895		35.1	%	$	2,510,723		34.1	%	$	2,302,925		32.1	%	$	2,388,068		34.1	%
Interest-bearing transaction		660,557		7.8			599,580		7.6			579,408		7.9			514,537		7.2			451,307		6.5
Money market		3,217,195		37.8			2,958,790		37.5			2,568,843		34.9			2,585,926		36.0			2,539,061		36.4
Savings		129,498		1.5			129,922		1.6			128,061		1.7			127,843		1.8			122,606		1.8
Certificates and other time deposits		1,562,626		18.3			1,435,409		18.2			1,576,580		21.4			1,647,521		22.9			1,477,860		21.2
Total deposits	$	8,517,706		100	%	$	7,889,596		100	%	$	7,363,615		100	%	$	7,178,752		100	%	$	6,978,902		100	%

Loan to Deposit Ratio		100.6	%				97.6	%				100.4	%				102.7	%				102.2	%

Loan to Deposit Ratio, excluding MW and PPP loans		93.1	%				90.5	%				92.0	%				92.3	%				90.0	%

¹ Total LHI does not include deferred fees of $15.0 million, $11.5 million, $9.5 million, $8.1 million and $7.5 million at June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021 and June 30, 2021, respectively.

VERITEX HOLDINGS, INC. AND SUBSIDIARIES

Financial Highlights

(Unaudited)

Asset Quality

	For the Quarter Ended															For the Six Months Ended
	Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Jun 30, 2022			Jun 30, 2021
	(In thousands)
NPAs:
Nonaccrual loans	$	42,242		$	46,680		$	49,687		$	72,317		$	76,994		$	42,242		$	76,994
Accruing loans 90 or more days past due¹		1,753			264			441			1,711			462			1,753			462
Total nonperforming loans held for investment ("NPLs")		43,995			46,944			50,128			74,028			77,456			43,995			77,456
OREO		1,032			1,062			—			—			2,467			1,032			2,467
Total NPAs	$	45,027		$	48,006		$	50,128		$	74,028		$	79,923		$	45,027		$	79,923

Charge-offs:
1-4 family residential	$	—		$	—		$	—		$	(64	)	$	(300	)	$	—		$	(315	)
OOCRE		(244	)		(1,341	)		(898	)		(813	)		(689	)		(1,585	)		(689	)
NOOCRE		—			(553	)		(7,936	)		—			—			(553	)		—
Commercial		(528	)		(3,294	)		(4,114	)		(5,508	)		(5,608	)		(3,822	)		(5,954	)
Consumer		(1,091	)		(134	)		(44	)		(17	)		(20	)		(1,225	)		(38	)
Total charge-offs		(1,863	)		(5,322	)		(12,992	)		(6,402	)		(6,617	)		(7,185	)		(6,996	)

Recoveries:
1-4 family residential		3			—			6			26			29			3			32
OOCRE		245			—			—			—			500			245			500
NOOCRE

Veritex Holdings, Inc. Reports Second Quarter Operating Results