Veritex Holdings, Inc. Reports First Quarter 2025 Operating Results

DALLAS, April 22, 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 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 DateFinancial HighlightsQ1 2025 Q4 2024 Q1 2024 (Dollars in thousands, except per share data)(unaudited)GAAP Net income$29,070 $24,882 $24,156 Diluted EPS 0.53 0.45 0.44 Book value per common share 30.08 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 margin 3.31 3.20 3.24 Efficiency ratio 60.91 67.04 62.45 Non-GAAP2 Operating earnings$29,707 $29,769 $29,137 Diluted operating EPS 0.54 0.54 0.53 Tangible book value per common share 22.33 21.61 20.33 Pre-tax, pre-provision operating earnings 43,413 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 ratio 60.62 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; andDeclared and increased our quarterly cash dividend to $0.22 per share of outstanding common stock payable on May 22, 2025. 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. 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. 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. 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. VERITEX HOLDINGS, INC. AND SUBSIDIARIESFinancial Highlights(Unaudited) For the Quarter Ended Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 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 EPS 0.53 0.45 0.56 0.50 0.44 Book value per common share 30.08 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 end 54,297 54,517 54,446 54,350 54,496 Weighted average basic shares outstanding for the period 54,486 54,489 54,409 54,457 54,444 Weighted average diluted shares outstanding for the period 55,123 55,237 54,932 54,823 54,842 Summary of Credit Ratios: ACL to total LHI 1.19% 1.18% 1.21% 1.16% 1.15%NPAs to total assets 0.77 0.62 0.52 0.65 0.82 NPAs to total loans and OREO 1.03 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 ratio 60.91 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 assets 12.96% 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 capital 11.04 11.09 10.86 10.49 10.37 Tier 1 capital to risk-weighted assets 11.31 11.36 11.13 10.75 10.63 Total capital to risk-weighted assets 13.46 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. VERITEX HOLDINGS, INC. AND SUBSIDIARIESFinancial Highlights(In thousands) Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 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 banks 768,702 802,714 1,046,625 598,375 698,885 Cash and cash equivalents 849,790 855,200 1,100,790 651,837 740,769 Debt securities, net 1,463,157 1,478,538 1,423,610 1,349,354 1,344,930 Other investments 69,452 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 MW 8,828,672 8,899,133 9,028,575 9,209,094 9,249,551 Total loans 9,469,683 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, net 112,801 113,480 114,202 105,222 105,299 Other real estate owned (“OREO”) 24,268 24,737 9,034 24,256 18,445 Intangible assets, net of accumulated amortization 27,974 28,664 32,825 35,817 38,679 Goodwill 404,452 404,452 404,452 404,452 404,452 Other assets 210,863 226,200 211,471 232,518 241,863 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 deposits 5,180,495 5,061,157 4,204,708 3,979,454 4,220,114 Certificates and other time deposits 2,679,221 2,958,861 3,625,920 3,744,596 3,486,805 Correspondent money market deposits 486,762 541,117 561,489 584,067 597,690 Total deposits 10,665,123 10,752,592 11,036,011 10,724,844 10,653,820 Accounts payable and other liabilities 151,579 183,944 168,415 180,585 186,027 Advances from FHLB — — — — 100,000 Subordinated debentures and subordinated notes 155,909 230,736 230,536 230,285 230,034 Total liabilities 10,972,611 11,167,272 11,434,962 11,135,714 11,169,881 Stockholders’ equity: Common stock 615 613 613 612 611 Additional paid-in capital 1,329,626 1,328,748 1,324,929 1,321,995 1,319,144 Retained earnings 526,044 507,903 493,921 473,801 457,499 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’ equity 1,633,480 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 VERITEX HOLDINGS, INC. AND SUBSIDIARIESFinancial Highlights(In thousands, except per share data) For the Quarter Ended Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)Interest income: Loans, including fees$146,505 $154,998 $167,261 $166,979 $161,942 Debt securities 17,106 16,893 15,830 15,408 13,695 Deposits in financial institutions and Fed Funds sold 9,244 11,888 12,571 7,722 8,050 Equity securities and other investments 870 940 1,001 1,138 900 Total interest income 173,725 184,719 196,663 191,247 184,587 Interest expense: Transaction and savings deposits 45,165 44,841 47,208 45,619 46,784 Certificates and other time deposits 30,268 40,279 46,230 44,811 40,492 Advances from FHLB 27 130 47 1,468 1,391 Subordinated debentures and subordinated notes 2,824 3,328 3,116 3,113 3,114 Total interest expense 78,284 88,578 96,601 95,011 91,781 Net interest income 95,441 96,141 100,062 96,236 92,806 Provision for credit losses 4,000 2,300 4,000 8,250 7,500 Provision (benefit) for unfunded commitments 1,300 (401) — — (1,541)Net interest income after provisions 90,141 94,242 96,062 87,986 86,847 Noninterest income: Service charges and fees on deposit accounts 5,611 5,612 5,442 4,974 4,896 Loan fees 2,495 2,265 3,278 2,207 2,510 Loss on sales of debt securities — (4,397) — — (6,304)Government guaranteed loan income, net 3,301 5,368 780 1,320 2,614 Customer swap income 700 509 271 326 449 Other income 2,182 699 3,335 1,751 2,497 Total noninterest income 14,289 10,056 13,106 10,578 6,662 Noninterest expense: Salaries and employee benefits 36,624 37,446 37,370 32,790 33,365 Occupancy and equipment 4,650 4,633 4,789 4,585 4,677 Professional and regulatory fees 4,931 5,564 4,903 5,617 6,053 Data processing and software expense 5,403 5,741 5,268 5,097 4,856 Marketing 2,032 2,896 2,781 1,976 1,546 Amortization of intangibles 2,438 2,437 2,438 2,438 2,438 Telephone and communications 330 323 335 365 261 Other 10,426 12,154 12,216 10,273 8,920 Total noninterest expense 66,834 71,194 70,100 63,141 62,116 Income before income tax expense 37,596 33,104 39,068 35,423 31,393 Income tax expense 8,526 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 outstanding 54,486 54,489 54,409 54,457 54,444 Weighted average diluted shares outstanding 55,123 55,237 54,932 54,823 54,842 VERITEX HOLDINGS, INC. AND SUBSIDIARIESFinancial Highlights(Unaudited) For the Quarter Ended March 31, 2025 December 31, 2024 March 31, 2024 AverageOutstandingBalance InterestEarned/InterestPaid AverageYield/Rate AverageOutstandingBalance InterestEarned/InterestPaid AverageYield/Rate AverageOutstandingBalance InterestEarned/InterestPaid AverageYield/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, MW 426,724 6,176 5.87 492,372 7,216 5.83 279,557 4,357 6.27 Debt securities 1,467,220 17,106 4.73 1,458,057 16,893 4.61 1,294,994 13,695 4.25 Interest-bearing deposits in other banks 827,751 9,244 4.53 971,451 11,888 4.87 584,593 8,050 5.54 Equity securities and other investments 70,696 870 4.99 72,223 940 5.18 76,269 900 4.75 Total interest-earning assets 11,679,296 173,725 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 assets 938,401 916,969 929,043 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 deposits 2,726,309 30,268 4.50 3,319,628 40,279 4.83 3,283,735 40,492 4.96 Advances from FHLB and Other 2,333 27 4.69 10,598 130 4.88 100,989 1,391 5.54 Subordinated debentures and subordinated notes 191,638 2,824 5.98 230,633 3,328 5.74 229,881 3,114 5.45 Total interest-bearing liabilities 8,369,371 78,284 3.79 8,562,018 88,578 4.12 8,254,050 91,781 4.47 Noninterest-bearing liabilities: Noninterest-bearing deposits 2,345,586 2,400,809 2,355,315 Other liabilities 170,389 183,810 192,809 Total liabilities 10,885,346 11,146,637 10,802,174 Stockholders’ equity 1,620,788 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. VERITEX HOLDINGS, INC. AND SUBSIDIARIESFinancial Highlights(Unaudited)Yield Trend For the Quarter Ended Mar 31,2025 Dec 31,2024 Sep 30,2024 Jun 30,2024 Mar 31,2024Average yield on interest-earning assets: Loans1 6.40% 6.56% 6.89% 6.90% 6.83%LHI, MW 5.87 5.83 6.75 6.36 6.27 Total Loans 6.38 6.53 6.89 6.88 6.81 Debt securities 4.73 4.61 4.55 4.58 4.25 Interest-bearing deposits in other banks 4.53 4.87 5.41 5.54 5.54 Equity securities and other investments 4.99 5.18 5.25 5.80 4.75 Total interest-earning assets 6.03% 6.15% 6.49% 6.54% 6.44% Average rate on interest-bearing liabilities: Interest-bearing demand and savings deposits 3.36% 3.57% 4.00% 4.01% 4.06%Certificates and other time deposits 4.50 4.83 5.00 5.02 4.96 Advances from FHLB and other 4.69 4.88 5.73 5.54 5.54 Subordinated debentures and subordinated notes 5.98 5.74 5.38 5.44 5.45 Total interest-bearing liabilities 3.79% 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 31,2024Average cost of interest-bearing deposits 3.74% 4.07% 4.44% 4.46% 4.43%Average costs of total deposits, including noninterest-bearing 2.91 3.16 3.42 3.46 3.42 VERITEX HOLDINGS, INC. AND SUBSIDIARIESFinancial 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”)$2,717,037 30.7% $2,693,538 30.2% $2,728,544 30.2% $2,798,260 30.4% $2,785,987 30.1%Real Estate: Owner occupied commercial (“OOCRE”) 795,808 9.0 780,003 8.8 807,223 8.9 806,285 8.7 788,376 8.5 Non-owner occupied commercial (“NOOCRE”) 2,266,526 25.6 2,382,499 26.7 2,338,094 25.9 2,369,848 25.7 2,352,993 25.5 Construction and land 1,214,260 13.7 1,303,711 14.7 1,436,540 15.8 1,536,580 16.7 1,568,257 16.9 Farmland 31,339 0.4 31,690 0.4 32,254 0.4 30,512 0.3 30,979 0.3 1-4 family residential 1,021,293 11.6 957,341 10.7 944,755 10.5 917,402 10.0 969,401 10.5 Multi-family residential 782,412 8.9 750,218 8.4 738,090 8.2 748,740 8.1 751,607 8.1 Consumer 8,597 0.1 9,115 0.1 11,292 0.1 9,245 0.1 8,882 0.1 Total LHI1$8,837,272 100% $8,908,115 100% $9,036,792 100% $9,216,872 100% $9,256,482 100% MW 571,775 605,411 630,650 568,047 449,531 Total LHI1$9,409,047 $9,513,526 $9,667,442 $9,784,919 $9,706,013 Total LHFS 69,236 89,309 48,496 57,046 64,762 Total loans$9,478,283 $9,602,835 $9,715,938 $9,841,965 $9,770,775 Deposits Noninterest-bearing$2,318,645 21.7% $2,191,457 20.4% $2,643,894 24.0% $2,416,727 22.5% $2,349,211 22.1%Interest-bearing transaction 863,462 8.1 839,005 7.8 421,059 3.8 523,272 4.9 724,171 6.8 Money market 3,730,446 35.0 3,772,964 35.1 3,462,709 31.4 3,268,286 30.5 3,326,742 31.2 Savings 586,587 5.5 449,188 4.2 320,940 2.9 187,896 1.8 169,201 1.6 Certificates and other time deposits 2,679,221 25.1 2,958,861 27.5 3,625,920 32.8 3,744,596 34.9 3,486,805 32.7 Correspondent money market accounts 486,762 4.6 541,117 5.0 561,489 5.1 584,067 5.4 597,690 5.6 Total deposits$10,665,123 100% $10,752,592 100% $11,036,011 100% $10,724,844 100% $10,653,820 100% Total loans to deposits ratio 88.9% 89.3% 88.0% 91.8% 91.7% Total loans to deposit ratio, excluding MW loans and LHFS 82.9% 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. VERITEX HOLDINGS, INC. AND SUBSIDIARIESFinancial Highlights(Unaudited)Asset Quality For the Quarter Ended Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 (Dollars in thousands)NPAs: Nonaccrual loans$69,188 $52,521 $55,335 $58,537 $75,721 Nonaccrual PCD loans1 196 — 70 73 9,419 Accruing loans 90 or more days past due2 3,249 1,914 2,860 143 220 Total nonperforming loans held for investment (“NPLs”) 72,633 54,435 58,265 58,753 85,360 Other real estate owned (“OREO”) 24,268 24,737 9,034 24,256 18,445 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&I 32 1,047 1,962 361 96 MW — — 46 — — Consumer 195 30 33 497 49 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 assets 0.77% 0.62% 0.52% 0.65% 0.82%NPAs, excluding nonaccrual PCD loans, to total assets 0.77 0.62 0.52 0.65 0.74 NPAs to total LHI and OREO 1.03 0.83 0.70 0.85 1.06 NPLs to total LHI 0.77 0.57 0.60 0.60 0.88 NPLs, excluding nonaccrual PCD loans, to total LHI 0.77 0.57 0.60 0.60 0.78 ACL to total LHI 1.19 1.18 1.21 1.16 1.15 ACL to total loans, excluding MW and LHFS 1.27 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. VERITEX HOLDINGS, INC. AND SUBSIDIARIESReconciliation 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, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 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 outstanding 54,297 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 VERITEX HOLDINGS, INC. AND SUBSIDIARIESReconciliation 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, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 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 Assets 9.95% 9.54% 9.37% 9.14% 9.02% VERITEX HOLDINGS, INC. AND SUBSIDIARIESReconciliation 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, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 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 intangibles 2,438 2,437 2,438 2,438 2,438 Less: Tax benefit at the statutory rate 512 512 512 512 512 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% VERITEX HOLDINGS, INC. AND SUBSIDIARIESReconciliation 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, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 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 income 29,587 30,824 32,488 27,949 30,460 Less: Tax impact of adjustments 109 1,248 307 166 1,323 Plus: Nonrecurring tax adjustments 229 193 — 527 — Operating earnings$29,707 $29,769 $32,181 $28,310 $29,137 Weighted average diluted shares outstanding 55,123 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. For the Quarter Ended Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 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 taxes 8,526 8,222 8,067 8,221 7,237 Plus: Provision for credit losses and unfunded commitments 5,300 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 charges 517 — — — — 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 intangibles 2,438 2,437 2,438 2,438 2,438 Less: Tax benefit at the statutory rate 512 512 512 512 512 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 ratio 60.91% 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 income 14,289 10,056 13,106 10,578 6,662 Plus: BOLI 1035 exchange charges 517 — — — — Plus: Loss on sale of AFS securities, net — 4,397 — — 6,304 Operating noninterest income 14,806 14,453 13,106 10,578 12,966 Noninterest expense 66,834 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 ratio 60.62% 62.98% 60.63% 58.41% 58.73% 1 Annualized ratio for quarterly metrics.

Veritex Holdings, Inc. Reports First Quarter 2025 Operating Results

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