Veritex Holdings, Inc. Reports Second Quarter Operating Results

Rhea-AI Summary

Veritex Holdings reported strong Q2 2022 results, achieving a 1.76% pre-tax, pre-provision operating return on average assets. Net income was $29.6 million, down from $33.5 million in Q1 2022, with a diluted EPS of $0.54. Total loans held for investment grew 44.4% annualized, reaching $7.9 billion, while total deposits increased by 31.8% to $8.5 billion. The company declared a quarterly cash dividend of $0.20 per share, payable on August 26, 2022. Asset quality improved with non-performing assets decreasing to 0.40%.

Positive

• Net income of $29.6 million for Q2 2022.
• 44.4% annualized growth in total loans held for investment, reaching $7.9 billion.
• 31.8% annualized increase in total deposits to $8.5 billion.
• Declared a quarterly cash dividend of $0.20 per share.
• Improved asset quality with non-performing assets at 0.40%.

Negative

• Net income decreased from $33.5 million in Q1 2022.
• Noninterest income fell by $4.7 million, or 31.3%, compared to Q1 2022.

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

¹ 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.
² Annualized 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 equity1, 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 assets1, 2			1.76	%			1.71	%			1.97	%			1.85	%			1.66	%			1.74	%			1.74	%
Operating return on average assets1, 3			1.12				1.38				1.72				1.48				1.29				1.24				1.37
Operating return on average tangible common equity1, 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.
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
		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		93				400				—				—				—				493				—
Commercial		572				144				61				596				659				716				885
Consumer		41				9				257				8				36				50				38
Total recoveries		954				553				324				630				1,224				1,507				1,455
Net charge-offs	$	(909	)		$	(4,769	)		$	(12,668	)		$	(5,772	)		$	(5,393	)		$	(5,678	)		$	(5,541	)
ACL	$	80,576			$	72,485			$	77,754			$	93,771			$	99,543			$	80,576			$	99,543
Asset Quality Ratios:
NPAs to total assets		0.40	%			0.46	%			0.51	%			0.77	%			0.85	%			0.40	%			0.85	%
NPLs to total LHI, excluding MW and PPP loans		0.55				0.66				0.74				1.12				1.23				0.55				1.23
ACL to total LHI, excluding MW and PPP loans		1.02				1.02				1.15				1.42				1.59				1.02				1.59
Net charge-offs to average loans outstanding		0.01				0.07				0.19				0.09				0.09				0.08				0.09

¹ 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.

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

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

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

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

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

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

		As of
		Jun 30, 2022				Mar 31, 2022				Dec 31, 2021				Sep 30, 2021				Jun 30, 2021
		(Dollars in thousands, except per share data)
Tangible Common Equity
Total stockholders' equity		$	1,429,442			$	1,447,996			$	1,315,079			$	1,284,160			$	1,272,907
Adjustments:
Goodwill			(404,452	)			(404,452	)			(403,771	)			(370,840	)			(370,840	)
Core deposit intangibles			(43,122	)			(45,560	)			(47,998	)			(50,436	)			(52,873	)
Tangible common equity		$	981,868			$	997,984			$	863,310			$	862,884			$	849,194
Common shares outstanding			53,951				53,907				49,372				49,229				49,498
Book value per common share		$	26.50			$	26.86			$	26.64			$	26.09			$	25.72
Tangible book value per common share		$	18.20			$	18.51			$	17.49			$	17.53			$	17.16

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

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

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

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

		As of
		Jun 30, 2022				Mar 31, 2022				Dec 31, 2021				Sep 30, 2021				Jun 30, 2021
		(Dollars in thousands)
Tangible Common Equity
Total stockholders' equity		$	1,429,442			$	1,447,996			$	1,315,079			$	1,284,160			$	1,272,907
Adjustments:
Goodwill			(404,452	)			(404,452	)			(403,771	)			(370,840	)			(370,840	)
Core deposit intangibles			(43,122	)			(45,560	)			(47,998	)			(50,436	)			(52,873	)
Tangible common equity		$	981,868			$	997,984			$	863,310			$	862,884			$	849,194
Tangible Assets
Total assets		$	11,304,811			$	10,453,680			$	9,757,249			$	9,572,300			$	9,349,525
Adjustments:
Goodwill			(404,452	)			(404,452	)			(403,771	)			(370,840	)			(370,840	)
Core deposit intangibles			(43,122	)			(45,560	)			(47,998	)			(50,436	)			(52,873	)
Tangible Assets		$	10,857,237			$	10,003,668			$	9,305,480			$	9,151,024			$	8,925,812
Tangible Common Equity to Tangible Assets			9.04	%			9.98	%			9.28	%			9.43	%			9.51	%

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

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

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

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

		For the Quarter Ended																				For the Six Months Ended
		June 30, 2022				Mar 31, 2022				Dec 31, 2021				Sep 30, 2021				Jun 30, 2021				June 30, 2022				June 30, 2021
		(Dollars in thousands)
Net income available for common stockholders adjusted for amortization of core deposit intangibles
Net income		$	29,626			$	33,470			$	41,506			$	36,835			$	29,456			$	63,096			$	61,243
Adjustments:
Plus: Amortization of core deposit intangibles			2,438				2,438				2,438				2,438				2,438				4,876				4,885
Less: Tax benefit at the statutory rate			512				512				512				512				512				1,024				1,026
Net income available for common stockholders adjusted for amortization of core deposit intangibles		$	31,552			$	35,396			$	43,432			$	38,761			$	31,382			$	66,948			$	65,102
Average Tangible Common Equity
Total average stockholders' equity		$	1,447,377			$	1,357,448			$	1,301,676			$	1,290,528			$	1,254,371			$	1,402,661			$	1,239,415
Adjustments:
Average goodwill			(404,452	)			(404,014	)			(393,220	)			(370,840	)			(370,840	)			(404,234	)			(370,840	)
Average core deposit intangibles			(44,720	)			(47,158	)			(49,596	)			(52,043	)			(54,471	)			(45,932	)			(55,685	)
Average tangible common equity		$	998,205			$	906,276			$	858,860			$	867,645			$	829,060			$	952,495			$	812,890
Return on Average Tangible Common Equity (Annualized)			12.68	%			15.84	%			20.06	%			17.72	%			15.18	%			14.17	%			16.15	%

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

Operating Earnings, Pre-tax, Pre-provision Operating Earnings and performance metrics calculated using Operating Earnings and Pre-tax, Pre-provision Operating Earnings, including Diluted Operating Earnings per Share, Operating Return on Average Assets, Pre-tax, Pre-Provision Operating Return on Average Assets, Operating Return on Average Tangible Common Equity and Operating Efficiency Ratio. Operating earnings, pre-tax, pre-provision operating earnings and the performance metrics calculated using these metrics, listed below, are non-GAAP measures used by management to evaluate the Company’s financial performance. We calculate (a) operating earnings as net income plus severance payments, plus loss on sale of debt securities AFS, net, less Thrive PPP loan forgiveness income, plus M&A expenses, less tax impact of adjustments, plus nonrecurring tax adjustments. We calculate (b) diluted operating earnings per share as operating earnings as described in clause (a) divided by weighted average diluted shares outstanding. We calculate (c) pre-tax, pre-provision operating earnings as operating earnings as described in clause (a) plus provision for income taxes, plus provision (benefit) for credit losses and unfunded commitments. We calculate (d) pre-tax, pre-provision operating return on average assets as pre-tax, pre-provision operating earnings as described in clause (a) divided by total average assets. We calculate (e) operating return on average assets as operating earnings as described in clause (a) divided by total average assets. We calculate (f) operating return on average tangible common equity as operating earnings as described in clause (a), adjusted for the amortization of intangibles and tax benefit at the statutory rate, divided by total average tangible common equity (average stockholders’ equity less average goodwill and average core deposit intangibles, net of accumulated amortization). We calculate (g) operating efficiency ratio as non interest expense plus adjustments to operating non interest expense divided by non interest income plus adjustments to operating non interest 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																For the Six Months Ended
		June 30, 2022			Mar 31, 2022			Dec 31, 2021				Sep 30, 2021			Jun 30, 2021			June 30, 2022			June 30, 2021
		(Dollars in thousands)
Operating Earnings
Net income		$	29,626		$	33,470		$	41,506			$	36,835		$	29,456		$	63,096		$	61,243
Plus: Severance payments1			—			—			—				—			627			—			627
Plus: Loss on sale of debt securities AFS, net			—			—			—				188			—			—			—
Less: Thrive PPP loan forgiveness income2			—			—			—				1,912			—			—			—
Plus: M&A expenses			295			700			826				—			—			995			—
Operating pre-tax income			29,921			34,170			42,332				35,111			30,083			64,091			61,870
Less: Tax impact of adjustments			66			156			(78	)			39			131			222			131
Plus: Nonrecurring tax adjustments3			—			—			—				—			—			—			426
Operating earnings		$	29,855		$	34,014		$	42,410			$	35,072		$	29,952		$	63,869		$	62,165
Weighted average diluted shares outstanding			54,646			51,571			50,441				50,306			50,331			53,121			50,187
Diluted EPS		$	0.54		$	0.65		$	0.82			$	0.73		$	0.59		$	1.19		$	1.22
Diluted operating EPS		$	0.55		$	0.66		$	0.84			$	0.70		$	0.60			1.20			1.24

¹ Severance payments relate to branch restructurings made during the three months ended June 30, 2021.
² During the third quarter of 2021, Thrive’s PPP loan with another bank was 100% forgiven by the Small Business Administration. As a result of our 49% investment in Thrive, the $1.9 million represents our portion of the PPP loan forgiveness. PPP fee income is not taxable and as such has no tax impact.
³ A nonrecurring tax adjustment of $426 thousand recorded in the first quarter of 2021 was due to a true-up of a deferred tax liability.

		For the Quarter Ended																				For the Six Months Ended
		June 30, 2022				Mar 31, 2022				Dec 31, 2021				Sep 30, 2021				Jun 30, 2021				June 30, 2022				June 30, 2021
		(Dollars in thousands)
Pre-Tax, Pre-Provision Operating Earnings
Net income		$	29,626			$	33,470			$	41,506			$	36,835			$	29,456			$	63,096			$	61,243
Plus: Provision for income taxes			8,079				8,102				10,697				9,195				7,837				16,181				16,830
Plus: Provision (benefit) for credit losses and unfunded commitments			9,000				(7	)			(4,389	)			(448	)			577				8,993				7
Plus: Severance payments			—				—				—				—				627				—				627
Plus: Loss on sale of AFS securities, net			—				—				—				188				—				—				—
Less: Thrive PPP loan forgiveness income			—				—				—				1,912				—								—
Plus: M&A expenses			295				700				826				—				—				995				—
Pre-tax, pre-provision operating earnings		$	47,000			$	42,265			$	48,640			$	43,858			$	38,497			$	89,265			$	78,707
Average total assets		$	10,711,663			$	9,998,922			$	9,788,671			$	9,385,470			$	9,321,279			$	10,357,261			$	9,132,347
Pre-tax, pre-provision operating return on average assets1			1.76	%			1.71	%			1.97	%			1.85	%			1.66	%			1.74	%			1.74	%
Average total assets		$	10,711,663			$	9,998,922			$	9,788,671			$	9,385,470			$	9,321,279			$	10,357,261			$	9,132,347
Return on average assets1			1.11	%			1.36	%			1.68	%			1.56	%			1.27	%			1.23	%			1.35	%
Operating return on average assets1			1.12				1.38				1.72				1.48				1.29				1.24				1.37
Operating earnings adjusted for amortization of core deposit intangibles
Operating earnings		$	29,855			$	34,014			$	42,410			$	35,072			$	29,952			$	63,869			$	62,165
Adjustments:
Plus: Amortization of core deposit intangibles			2,438				2,438				2,438				2,438				2,438				4,876				4,885
Less: Tax benefit at the statutory rate			512				512				512				512				512				1,024				1,026
Operating earnings adjusted for amortization of core deposit intangibles		$	31,781			$	35,940			$	44,336			$	36,998			$	31,878			$	67,721			$	66,024
Average Tangible Common Equity
Total average stockholders' equity		$	1,447,377			$	1,357,448			$	1,301,676			$	1,290,528			$	1,254,371			$	1,402,661			$	1,239,415
Adjustments:
Less: Average goodwill			(404,452	)			(404,014	)			(393,220	)			(370,840	)			(370,840	)			(404,234	)			(370,840	)
Less: Average core deposit intangibles			(44,720	)			(47,158	)			(49,596	)			(52,043	)			(54,471	)			(45,932	)			(55,685	)
Average tangible common equity		$	998,205			$	906,276			$	858,860			$	867,645			$	829,060			$	952,495			$	812,890
Operating return on average tangible common equity1			12.77	%			16.08	%			20.48	%			16.92	%			15.42	%			14.34	%			16.38	%
Efficiency ratio			50.76	%			52.84	%			48.53	%			47.55	%			52.42	%			51.76	%			51.01	%
Net interest income		$	84,480			$	73,040			$	76,741			$	71,276			$	67,131			$	157,520			$	132,766
Noninterest income			10,378				15,097				16,150				15,627				12,456				25,475				26,628
Plus: Loss on sale of AFS securities, net			—				—				—				188				—				—				—
Less: Thrive PPP loan forgiveness income			—				—				—				1,912				—				—				—
Operating noninterest income			10,378				15,097				16,150				13,903				12,456				25,475				26,628
Noninterest expense			48,153				46,572				45,077				41,321				41,717				94,725				81,314
Less: Severance payments			—				—				—				—				627				—				627
Less: M&A expenses			295				700				826				—				—				995				—
Operating noninterest expense		$	47,858			$	45,872			$	44,251			$	41,321			$	41,090			$	93,730			$	80,687
Operating efficiency ratio			50.45	%			52.05	%			47.64	%			48.51	%			51.63	%			51.22	%			50.62	%

¹ Annualized ratio for quarterly metrics.

FAQ

What are the Q2 2022 results for Veritex Holdings (VBTX)?

Veritex Holdings reported a net income of $29.6 million with a diluted EPS of $0.54 for Q2 2022.

How much did Veritex Holdings (VBTX) grow its loans in Q2 2022?

The total loans held for investment grew by 44.4% annualized, reaching $7.9 billion.

What was the dividend declared by Veritex Holdings (VBTX) for Q2 2022?

The company declared a quarterly cash dividend of $0.20 per share payable on August 26, 2022.

What is the non-performing asset ratio for Veritex Holdings (VBTX) in Q2 2022?

Non-performing assets decreased to 0.40% of total assets at June 30, 2022.

How did Veritex Holdings (VBTX) perform in terms of noninterest income in Q2 2022?

Noninterest income fell by $4.7 million, or 31.3%, compared to Q1 2022.