Veritex Holdings, Inc. Reports First Quarter 2024 Operating Results

April 23, 2024

DALLAS, April 23, 2024 (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, 2024.

“I am encouraged with the start of 2024. We continue to execute on our strategic positioning of our balance sheet with growth in deposits, capital and loans”, said C. Malcolm Holland, III. “Credit metrics remain stable and show positive trends as we gain momentum moving into the second quarter.”

  Quarter to Date
  Q1 2024   Q4 2023   Q1 2023
  (Dollars in thousands, except per share data)
(unaudited)
GAAP          
Net income $ 24,156     $ 3,499     $ 38,411  
Diluted EPS   0.44       0.06       0.70  
Book value per common share   28.23       28.18       27.54  
Return on average assets1   0.79 %     0.11 %     1.28 %
Return on average equity1   6.33       0.92       10.55  
Efficiency ratio   62.45       77.49       48.42  
Non-GAAP2          
Operating earnings $ 29,137     $ 31,625     $ 43,274  
Diluted operating EPS   0.53       0.58       0.79  
Tangible book value per common share   20.33       20.21       19.43  
Pre-tax, pre-provision operating earnings   43,656       47,688       66,382  
Pre-tax, pre-provision operating return on average assets1   1.42 %     1.54 %     2.20 %
Pre-tax, pre-provision operating return on average loans1   1.84       1.97       2.83  
Operating return on average assets1   0.95       1.02       1.44  
Return on average tangible common equity1   9.52       2.00       15.81  
Operating return on average tangible common equity1   11.34       12.37       17.72  
Operating efficiency ratio   58.73       55.50       45.63  

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 Metrics and Company Highlights

  • Total deposits grew $1.62 billion, or 18%, compared to March 31, 2023;
  • Total loans grew $46.4 million, or 0.5%, compared to March 31, 2023;
  • Loan to deposit ratio decreased to 91.7% as of March 31, 2024 compared to 93.6% as of December 31, 2023 and 107.7% as of March 31, 2023;
  • Loan to deposit ratio, excluding mortgage warehouse loans, decreased to 86.9% as of March 31, 2024 compared to 89.1% as of December 31, 2023 and 102.4% as of March 31, 2023;
  • Tangible book value per common share increased 0.6%, or $0.12, as of March 31, 2024 compared to December 31, 2023, and increased 4.63% or $0.90 as of March 31, 2023;
  • Allowance for credit losses (“ACL”) to total loans increased to 1.15%, compared to 1.14% as of December 31, 2023 and 1.02% as of March 31, 2023;
  • Pre-tax, pre-provision operating return on average assets was 1.42% as of March 31, 2024;
  • Announced authorization of a stock buyback program on March 28, 2024 to purchase up to $50 million of outstanding common stock over the course of a year as the Company deems appropriate;
  • Sold $120.1 million of lower-yielding available-for-sale (“AFS”) debt securities with a 3.11% average yield and reinvested the proceeds in higher yielding AFS securities with a 6.24% average yield; and
  • Declared quarterly cash dividend of $0.20 per share of outstanding common stock payable on May 24, 2024.

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

Net Interest Income

For the three months ended March 31, 2024, net interest income before provision for credit losses was $92.8 million and net interest margin was 3.24% compared to $95.5 million and 3.31%, respectively, for the three months ended December 31, 2023. The $2.7 million decrease, or 2.9%, in net interest income before provision for credit losses was primarily due to a $3.5 million decrease in interest income on loans driven by a decrease in loan yields, a $817 thousand decrease in interest income on equity securities and other investments and a $559 thousand increase in interest expense on transaction and savings deposits driven by an increase in funding costs on deposits. The decrease in net interest income was partially offset by a $1.4 million increase in interest income on debt securities and a $1.2 million decrease on advances from the Federal Home Loan Bank (“FHLB”), during the three months ended March 31, 2024. Net interest margin decreased 7 bps compared to the three months ended December 31, 2023, primarily due to the increase in funding costs on deposits during three months ended March 31, 2024, partially offset by an increase in debt securities.

Compared to the three months ended March 31, 2023, net interest income before provision for credit losses for the three months ended March 31, 2024 decreased by $10.6 million, or 10.2%. The decrease was primarily due to a $19.5 million increase in interest expense on certificates and other time deposits, a $16.9 million increase in interest expense on transaction and savings deposits and a $508 thousand decrease in interest income on equity securities and other investments. The decrease was partially offset by a $11.0 million decrease in advances from FHLB, a $10.2 million increase in interest income on loans driven by an increase in loan yields and average balances, a $2.7 million increase in interest income on debt securities and a $2.5 million increase in interest income on deposits in financial institutions and fed funds sold. Net interest margin decreased 45 bps from 3.69% for the three months ended March 31, 2023. The decrease was primarily due to the increase in funding costs on deposits during the three months ended March 31, 2024, partially offset by an increase in loan yields and debt securities.

Noninterest Income

Noninterest income for the three months ended March 31, 2024 was $6.7 million, an increase of $24.5 million, or 137.4%, compared to the three months ended December 31, 2023. The increase was primarily due to a $29.4 million loss in equity method investment income recorded in the three months ended December 31, 2023 related to a write down of our equity method investment in Thrive Mortgage, LLC ("Thrive") related to Thrive’s entry into a definitive agreement in December 2023 to be acquired by Lower Holding Company, which acquisition closed in March of 2024, with no corresponding or additional write down taken in the three months ended March 31, 2024. In addition, the increase was due to a $1.5 million increase in other income driven by a $1.3 million increase in BOLI income and a $1.3 million increase in loan fees. The increase was partially offset by a $6.3 million loss on sales of investment securities as a result of a strategic restructuring in which we sold $120.1 million of lower-yielding AFS securities, at amortized cost, with a 3.11% average yield, and reinvested the proceeds in higher yielding AFS securities with a 6.24% average yield.

Compared to the three months ended March 31, 2023, noninterest income for the three months ended March 31, 2024 decreased by $6.9 million, or 50.8%. The decrease was primarily due to a $7.1 million decrease in government guaranteed loan income, primarily driven by a decrease in the Company’s USDA sales, a $983 thousand decrease in loss on sales of investment securities and a $849 thousand decrease in other noninterest income.

Noninterest Expense

Noninterest expense was $62.1 million for the three months ended March 31, 2024, compared to $60.2 million for the three months ended December 31, 2023, an increase of $1.9 million, or 3.1%. The increase was primarily due to a $2.8 million increase in salaries and employee benefits and a $892 thousand increase in other noninterest expense. The increase is partially offset by a decrease of $1.6 million in professional and regulatory fees driven by FDIC insurance assessment expense, which includes a $768 thousand FDIC special assessment expense recorded in the fourth quarter 2023.

Compared to the three months ended March 31, 2023, noninterest expense for the three months ended March 31, 2024 increased by $5.5 million, or 9.7%. The increase was primarily due to a $3.0 million increase other noninterest expense, a $1.7 million increase in professional and regulatory fees driven by FDIC assessment fees that increased when the Company crossed $10 billion in total assets and a $1.5 million increase in salaries and employee benefits.

Financial Condition

Total loans held for investment (“LHI”) was $9.25 billion at March 31, 2024, an increase of $43.0 million, or 1.9% annualized, compared to December 31, 2023.

Total deposits were $10.65 billion at March 31, 2024, an increase of $315.6 million, or 12.2% annualized, compared to December 31, 2023. The increase was primarily the result of an increase of $295.1 million in certificates and other time deposits, an increase of $131.2 million in noninterest-bearing deposits and an increase of $17.7 million in correspondent money market account balances. The increase was partially offset by a decrease of $128.3 million in interest-bearing transaction and savings deposits.

Credit Quality

Nonperforming assets (“NPAs”) totaled $103.8 million, or 0.82% of total assets, at March 31, 2024, compared to $95.8 million, or 0.77% of total assets, at December 31, 2023. The Company had net charge-offs of $5.3 million for the three months ended March 31, 2024. Annualized net charge-offs to average loans outstanding were 22 bps for the three months ended March 31, 2024, compared to 40 bps and 4 bps for the three months ended December 31, 2023 and March 31, 2023, respectively.

ACL as a percentage of LHI was 1.15%, 1.14% and 1.02% at March 31, 2024, December 31, 2023 and March 31, 2023, respectively. The Company recorded a provision for credit losses of $7.5 million, $9.5 million and $9.4 million for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023, respectively . The recorded provision for credit losses for the three months ended March 31, 2024, compared to the three months ended December 31, 2023, was primarily attributable to an increase in general reserves as a result of changes in economic factors. The Company recorded a benefit for unfunded commitments of $1.5 million for the three months ended March 31, 2024, a $1.5 million benefit for unfunded commitments for the three months ended December 31, 2023, and a $1.5 million provision for unfunded commitments for the three months ended March 31, 2023. The recorded benefit for unfunded commitments for the three months ended March 31, 2024, compared to the three months ended December 31, 2023, was attributable to a decrease in unfunded commitment balances partially offset by changes in economic factors.

Income Tax

Income tax expense for the three months ended March 31, 2024 totaled $7.2 million, an increase of $1.2 million, or 20.5%, compared to the three months ended December 31, 2023. The Company’s effective tax rate was approximately 23.1% for the three months ended March 31, 2024. The effective tax rate for the three months ended March 31, 2024 was primarily due to a net discrete tax expense of $384 thousand associated with the recognition of an excess tax expense realized on share-based payment awards.

Dividend Information

After the close of the market on Tuesday, April 23, 2024, 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 May 24, 2024 to stockholders of record as of the close of business on May 10, 2024.

Non-GAAP Financial Measures

Veritex’s management uses certain non-GAAP (U.S. generally accepted accounting principles) financial measures to evaluate its operating performance and provide information that is important to investors. However, non-GAAP financial measures are supplemental and should be viewed in addition to, and not as an alternative for, Veritex’s reported results prepared in accordance with GAAP. Specifically, Veritex reviews and reports tangible book value per common share; operating earnings; tangible common equity to tangible assets; return on average tangible common equity; pre-tax, pre-provision operating earnings; pre-tax, pre-provision operating return on average assets; pre-tax, pre-provision operating return on average loans; diluted operating earnings per share; operating return on average assets; operating return on average tangible common equity; and operating efficiency ratio. Veritex has included in this earnings release information related to these non-GAAP financial measures for the applicable periods presented. Please refer to “Reconciliation of Non-GAAP Financial Measures” after the financial highlights at the end of this earnings release for a reconciliation of these non-GAAP financial measures.

Conference Call

The Company will host an investor conference call and webcast to review the results on Wednesday, April 24, 2024, at 8:30 a.m. Central Time. Participants may pre-register for the call by visiting https://edge.media-server.com/mmc/p/tn7dvesw and will receive a unique PIN, which can be used when dialing in for the call.

Participants may also register via teleconference: https://register.vevent.com/register/BIc24bd6831f8f4f6ba885c40b9b8ffc95. Once registration is completed, participants will be provided with a dial-in number containing a personalized conference code to access the call. All participants are instructed to dial-in 15 minutes prior to the start time.

A replay will be available within approximately two hours after the completion of the call, and made accessible for one week thereafter. You may access the replay via webcast through the investor relations section of Veritex’s website.

About Veritex Holdings, Inc.

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

Media and Investor Relations:
investorrelations@veritexbank.com

Forward-Looking Statements

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


 


VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Financial Highlights
(Unaudited)
 
  For the Quarter Ended
  Mar 31, 2024   Dec 31, 2023   Sep 30, 2023   Jun 30, 2023   Mar 31, 2023
  (Dollars and shares in thousands, except per share data)
Per Share Data (Common Stock):                  
Basic EPS $ 0.44     $ 0.06     $ 0.60     $ 0.62     $ 0.71  
Diluted EPS   0.44       0.06       0.60       0.62       0.70  
Book value per common share   28.23       28.18       27.46       27.48       27.54  
Tangible book value per common share1   20.33       20.21       19.44       19.41       19.43  
Dividends paid per common share outstanding2   0.20       0.20       0.20       0.20       0.20  
                   
Common Stock Data:                  
Shares outstanding at period end   54,496       54,338       54,305       54,261       54,229  
Weighted average basic shares outstanding for the period   54,444       54,327       54,300       54,247       54,149  
Weighted average diluted shares outstanding for the period   54,842       54,691       54,597       54,486       54,606  
                   
Summary of Credit Ratios:                  
ACL to total LHI   1.15 %     1.14 %     1.14 %     1.05 %     1.02 %
NPAs to total assets   0.82       0.77       0.65       0.55       0.35  
NPAs to total loans and OREO   1.06       0.99       0.83       0.70       0.46  
Net charge-offs to average loans outstanding4   0.22       0.40       0.08       0.48       0.04  
                   
Summary Performance Ratios:                  
Return on average assets4   0.79 %     0.11 %     1.06 %     1.10 %     1.28 %
Return on average equity4   6.33       0.92       8.58       8.96       10.55  
Return on average tangible common equity1, 4   9.52       2.00       12.80       13.35       15.81  
Efficiency ratio   62.45       77.49       54.49       49.94       48.42  
Net interest margin   3.24       3.31       3.46       3.51       3.69  
                   
Selected Performance Metrics - Operating:                  
Diluted operating EPS1 $ 0.53     $ 0.58     $ 0.60     $ 0.64     $ 0.79  
Pre-tax, pre-provision operating return on average assets1, 4   1.42 %     1.54 %     1.61 %     1.90 %     2.20 %
Pre-tax, pre-provision operating return on average loans1, 4   1.84       1.97       2.05       2.43       2.83  
Operating return on average assets1,4   0.95       1.02       1.06       1.13       1.44  
Operating return on average tangible common equity1,4   11.34       12.37       12.80       13.70       17.72  
Operating efficiency ratio1   58.73       55.50       54.49       48.90       45.63  
                   
Veritex Holdings, Inc. Capital Ratios:                  
Average stockholders' equity to average total assets   12.43 %     12.27 %     12.30 %     12.23 %     12.09 %
Tangible common equity to tangible assets1   9.02       9.18       8.86       8.76       8.66  
Tier 1 capital to average assets (leverage)   10.12       10.03       10.10       9.80       9.67  
Common equity tier 1 capital   10.37       10.29       10.11       9.76       9.32  
Tier 1 capital to risk-weighted assets   10.63       10.56       10.37       10.01       9.56  
Total capital to risk-weighted assets   13.33       13.18       12.95       12.51       11.99  

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.
3Nonaccrual 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.
4Annualized ratio for quarterly metrics.



VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Financial Highlights
(In thousands)
 
  Mar 31, 2024   Dec 31, 2023   Sep 30, 2023   Jun 30, 2023   Mar 31, 2023
  (unaudited)       (unaudited)   (unaudited)   (unaudited)
ASSETS                  
Cash and cash equivalents $ 740,769     $ 629,063     $ 713,408     $ 663,921     $ 808,395  
Debt securities, net   1,344,930       1,257,042       1,060,629       1,144,020       1,150,959  
Other investments   76,788       76,238       80,869       138,894       137,621  
                   
Loans held for sale (“LHFS”)   64,762       79,072       41,313       29,876       42,816  
LHI, mortgage warehouse (“MW”)   449,531       377,796       390,767       436,255       437,501  
LHI, excluding MW   9,249,551       9,206,544       9,237,447       9,257,183       9,237,159  
Total loans   9,763,844       9,663,412       9,669,527       9,723,314       9,717,476  
ACL   (112,032 )     (109,816 )     (109,831 )     (102,150 )     (98,694 )
Bank-owned life insurance   85,359       84,833       84,867       84,375       84,962  
Bank premises, furniture and equipment, net   105,299       105,727       106,118       105,986       107,540  
Other real estate owned (“OREO”)   18,445                          
Intangible assets, net of accumulated amortization   38,679       41,753       44,294       48,293       51,086  
Goodwill   404,452       404,452       404,452       404,452       404,452  
Other assets   241,863       241,633       291,998       259,263       245,690  
Total assets $ 12,708,396     $ 12,394,337     $ 12,346,331     $ 12,470,368     $ 12,609,487  
LIABILITIES AND STOCKHOLDERS’ EQUITY                  
Deposits:                  
Noninterest-bearing deposits $ 2,349,211     $ 2,218,036     $ 2,363,340     $ 2,234,109     $ 2,212,389  
Interest-bearing transaction and savings deposits   4,220,114       4,348,385       3,936,070       3,590,253       3,492,011  
Certificates and other time deposits   3,486,805       3,191,737       3,403,427       2,928,949       2,896,870  
Correspondent money market deposits   597,690       580,037       493,681       480,598       433,468  
Total deposits   10,653,820       10,338,195       10,196,518       9,233,909       9,034,738  
Accounts payable and other liabilities   186,027       195,036       229,116       190,900       171,985  
Advances from FHLB   100,000       100,000       200,000       1,325,000       1,680,000  
Subordinated debentures and subordinated notes   230,034       229,783       229,531       229,279       229,027  
Total liabilities   11,169,881       10,863,014       10,855,165       10,979,088       11,115,750  
Commitments and contingencies                  
Stockholders’ equity:                  
Common stock   611       610       609       609       609  
Additional paid-in capital   1,319,144       1,317,516       1,314,459       1,311,687       1,308,345  
Retained earnings   457,499       444,242       451,513       429,753       406,873  
Accumulated other comprehensive loss   (71,157 )     (63,463 )     (107,833 )     (83,187 )     (54,508 )
Treasury stock   (167,582 )     (167,582 )     (167,582 )     (167,582 )     (167,582 )
Total stockholders’ equity   1,538,515       1,531,323       1,491,166       1,491,280       1,493,737  
Total liabilities and stockholders’ equity $ 12,708,396     $ 12,394,337     $ 12,346,331     $ 12,470,368     $ 12,609,487  



VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Financial Highlights
(In thousands, except per share data)
  For the Quarter Ended
  Mar 31, 2024   Dec 31, 2023   Sep 30, 2023   Jun 30, 2023   Mar 31, 2023
  (unaudited)   (unaudited)   (unaudited)   (unaudited)   (unaudited)
Interest income:                  
Loans, including fees $ 161,942     $ 165,443     $ 167,368     $ 163,727     $ 151,707  
Debt securities   13,695       12,282       10,928       10,166       10,988  
Deposits in financial institutions and Fed Funds sold   8,050       8,162       7,128       7,507       5,534  
Equity securities and other investments   900       1,717       1,691       1,118       1,408  
Total interest income   184,587       187,604       187,115       182,518       169,637  
Interest expense:                  
Transaction and savings deposits   46,784       46,225       39,936       32,957       29,857  
Certificates and other time deposits   40,492       40,165       36,177       28,100       20,967  
Advances from FHLB   1,391       2,581       8,523       17,562       12,358  
Subordinated debentures and subordinated notes   3,114       3,100       3,118       3,068       3,066  
Total interest expense   91,781       92,071       87,754       81,687       66,248  
Net interest income   92,806       95,533       99,361       100,831       103,389  
Provision for credit losses1   7,500       9,500       8,627       15,000       9,385  
(Benefit) provision for unfunded commitments   (1,541 )     (1,500 )     (909 )     (1,129 )     1,497  
Net interest income after provisions   86,847       87,533       91,643       86,960       92,507  
Noninterest income:                  
Service charges and fees on deposit accounts   4,896       4,800       5,159       5,272       5,017  
Loan fees   2,510       1,200       1,564       1,520       2,064  
Loss on sales of debt securities   (6,304 )                       (5,321 )
Government guaranteed loan income, net   2,614       4,378       1,772       4,144       9,688  
Equity method investment (loss) income         (29,417 )     (136 )     485       (1,521 )
Customer swap income   408       238       202       961       217  
Other income   2,538       1,009       1,113       1,310       3,387  
Total noninterest income (loss)   6,662       (17,792 )     9,674       13,692       13,531  
Noninterest expense:                  
Salaries and employee benefits   33,365       30,606       30,949       28,650       31,865  
Occupancy and equipment   4,677       4,670       4,881       4,827       4,973  
Professional and regulatory fees   6,053       7,626       7,283       6,868       4,389  
Data processing and software expense   4,856       4,569       4,541       4,709       4,720  
Marketing   1,546       1,945       2,353       2,627       1,779  
Amortization of intangibles   2,438       2,438       2,437       2,468       2,495  
Telephone and communications   261       356       362       355       478  
Other   8,920       8,028       6,608       6,693       5,916  
Total noninterest expense   62,116       60,238       59,414       57,197       56,615  
Income before income tax expense   31,393       9,503       41,903       43,455       49,423  
Income tax expense   7,237       6,004       9,282       9,725       11,012  
Net income $ 24,156     $ 3,499     $ 32,621     $ 33,730     $ 38,411  
                   
Basic EPS $ 0.44     $ 0.06     $ 0.60     $ 0.62     $ 0.71  
Diluted EPS $ 0.44     $ 0.06     $ 0.60     $ 0.62     $ 0.70  
Weighted average basic shares outstanding   54,444       54,327       54,300       54,247       54,149  
Weighted average diluted shares outstanding   54,842       54,691       54,597       54,486       54,606  

1 Includes provision for credit losses on AFS securities of $885 thousand for the three months ended March 31, 2023.



VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Financial Highlights
(Unaudited)
   
  For the Quarter Ended
  March 31, 2024   December 31, 2023   March 31, 2023
  Average
Outstanding
Balance
  Interest
Earned/
Interest
Paid
  Average
Yield/
Rate
  Average
Outstanding
Balance
  Interest
Earned/
Interest
Paid
  Average
Yield/
Rate
  Average
Outstanding
Balance
  Interest
Earned/
Interest
Paid
  Average
Yield/
Rate
  (Dollars in thousands)
Assets                                  
Interest-earning assets:                                  
Loans1 $ 9,283,815     $ 157,585       6.83 %   $ 9,280,439     $ 161,021   6.88 %   $ 9,141,137     $ 146,801       6.51 %
LHI, MW   279,557       4,357       6.27       301,345       4,422   5.82       360,172       4,906       5.52  
Debt securities   1,294,994       13,695       4.25       1,188,776       12,282   4.10       1,252,457       10,988       3.56  
Interest-bearing deposits in other banks   584,593       8,050       5.54       587,929       8,162   5.51       478,345       5,534       4.69  
Equity securities and other investments   76,269       900       4.75       82,271       1,717   8.28       124,985       1,408       4.57  
Total interest-earning assets   11,519,228       184,587       6.44       11,440,760       187,604   6.51       11,357,096       169,637       6.06  
ACL   (112,229 )             (111,937 )             (92,664 )        
Noninterest-earning assets   929,043               977,811               949,881          
Total assets $ 12,336,042             $ 12,306,634             $ 12,214,313          
                                   
Liabilities and Stockholders’ Equity                                  
Interest-bearing liabilities:                                  
Interest-bearing demand and savings deposits $ 4,639,445     $ 46,784       4.06 %   $ 4,547,911     $ 46,225   4.03 %   $ 4,150,995     $ 29,857       2.92 %
Certificates and other time deposits   3,283,735       40,492       4.96       3,285,164       40,165   4.85       2,588,728       20,967       3.28  
Advances from FHLB and Other   100,989       1,391       5.54       182,935       2,581   5.60       1,122,683       12,358       4.46  
Subordinated debentures and subordinated notes   229,881       3,114       5.45       229,648       3,100   5.36       231,251       3,066       5.38  
Total interest-bearing liabilities   8,254,050       91,781       4.47       8,245,658       92,071   4.43       8,093,657       66,248       3.32  
                                   
Noninterest-bearing liabilities:                                  
Noninterest-bearing deposits   2,355,315               2,322,555               2,470,700          
Other liabilities   192,809               228,135               173,380          
Total liabilities   10,802,174               10,796,348               10,737,737          
Stockholders’ equity   1,533,868               1,510,286               1,476,576          
Total liabilities and stockholders’ equity $ 12,336,042             $ 12,306,634             $ 12,214,313          
                                   
Net interest rate spread2           1.97 %           2.08 %             2.74 %
Net interest income and margin3     $ 92,806       3.24 %       $ 95,533   3.31 %       $ 103,389       3.69 %

1 Includes average outstanding balances of LHFS of $53.9 million, $31.2 million and $19.7 million for the quarters ended March 31, 2024, December 31, 2023, and March 31, 2023, respectively, and average balances of LHI, excluding MW.
2 Net interest rate spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.
3 Net interest margin is equal to net interest income divided by average interest-earning assets.



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

Yield Trend

  For the Quarter Ended
  Mar 31,
2024
  Dec 31,
2023
  Sep 30,
2023
  Jun 30,
2023
  Mar 31,
2023
Average yield on interest-earning assets:                  
Loans1   6.83 %     6.88 %     6.92 %     6.85 %     6.51 %
LHI, MW   6.27       5.82       6.38       5.44       5.52  
Total Loans   6.81       6.85       6.90       6.80       6.48  
Debt securities   4.25       4.10       3.87       3.60       3.56  
Interest-bearing deposits in other banks   5.54       5.51       5.43       5.16       4.69  
Equity securities and other investments   4.75       8.28       4.94       3.25       4.57  
Total interest-earning assets   6.44 %     6.51 %     6.51 %     6.36 %     6.06 %
                   
Average rate on interest-bearing liabilities:                  
Interest-bearing demand and savings deposits   4.06 %     4.03 %     3.80 %     3.37 %     2.92 %
Certificates and other time deposits   4.96       4.85       4.55       3.92       3.28  
Advances from FHLB   5.54       5.60       4.66       4.78       4.46  
Subordinated debentures and subordinated notes   5.45       5.36       5.39       5.37       5.38  
Total interest-bearing liabilities   4.47 %     4.43 %     4.21 %     3.86 %     3.32 %
                   
Net interest rate spread2   1.97 %     2.08 %     2.30 %     2.50 %     2.74 %
Net interest margin3   3.24 %     3.31 %     3.46 %     3.51 %     3.69 %

1Includes average outstanding balances of LHFS of $53.9 million, $31.2 million, $28.3 million, $23.4 million and $19.7 million for the three months ended March 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023, and March 31, 2023, respectively, and average balances of LHI, excluding MW.
2 Net interest rate spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.
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,
2024
  Dec 31,
2023
  Sep 30,
2023
  Jun 30,
2023
  Mar 31,
2023
Average cost of interest-bearing deposits   4.43 %     4.38 %     4.12 %     3.61 %     3.06 %
Average costs of total deposits, including noninterest-bearing   3.42       3.37       3.15       2.73       2.24  



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

LHI and Deposit Portfolio Composition

  Mar 31,
2024
  Dec 31,
2023
  Sep 30,
2023
  Jun 30,
2023
  Mar 31,
2023
  (In thousands, except percentages)
LHI1                                      
Commercial and Industrial (“C&I”) $ 2,785,987       30.1 %   $ 2,752,063       29.9 %   $ 2,841,024       30.7 %   $ 2,850,084       30.7 %   $ 2,895,957       31.3 %
Real Estate:                                      
Owner occupied commercial (“OOCRE”)   788,376       8.5       794,088       8.6       697,299       7.5       671,602       7.2       631,563       6.8  
Non-owner occupied commercial (“NOOCRE”)   2,352,993       25.5       2,350,725       25.5       2,398,060       26.1       2,509,731       27.1       2,505,344       27.1  
Construction and land   1,568,257       16.9       1,734,254       18.8       1,705,053       18.4       1,659,700       17.9       1,831,349       19.8  
Farmland   30,979       0.3       31,114       0.3       59,684       0.6       51,663       0.6       51,680       0.6  
1-4 family residential   969,401       10.5       937,119       10.2       933,225       10.1       923,442       10.0       896,252       9.7  
Multi-family residential   751,607       8.1       605,817       6.6       603,395       6.5       592,473       6.4       432,209       4.6  
Consumer   8,882       0.1       10,149       0.1       9,845       0.1       11,189       0.1       8,316       0.1  
Total LHI $ 9,256,482       100 %   $ 9,215,329       100 %   $ 9,247,585       100 %   $ 9,269,884       100 %   $ 9,252,670       100 %
                                       
MW   449,531           377,796           390,767           436,255           437,501      
                                       
Total LHI1 $ 9,706,013         $ 9,593,125         $ 9,638,352         $ 9,706,139         $ 9,690,171      
                                       
Total LHFS   64,762           79,072           41,313           29,876           42,816      
                                       
Total Loans $ 9,770,775         $ 9,672,197         $ 9,679,665         $ 9,736,015         $ 9,732,987      
                                       
Deposits                                      
Noninterest-bearing $ 2,349,211       22.1 %   $ 2,218,036       21.5 %   $ 2,363,340       23.2 %   $ 2,234,109       24.2 %   $ 2,212,389       24.5 %
Interest-bearing transaction   724,171       6.8       927,193       8.9       739,098       7.2       676,653       7.3       866,609       9.6  
Money market   3,326,742       31.2       3,284,324       31.8       3,096,498       30.4       2,816,769       30.5       2,518,922       27.9  
Savings   169,201       1.6       136,868       1.3       100,474       1.0       96,831       1.0       106,480       1.2  
Certificates and other time deposits   3,486,805       32.7       3,191,737       30.9       3,403,427       33.4       2,928,949       31.7       2,896,870       32.0  
Correspondent money market accounts   597,690       5.6       580,037       5.6       493,681       4.8       480,598       5.3       433,468       4.8  
Total deposits $ 10,653,820       100 %   $ 10,338,195       100 %   $ 10,196,518       100 %   $ 9,233,909       100 %   $ 9,034,738       100 %
                                       
Total Loans to Deposits Ratio   91.7 %         93.6 %         94.9 %         105.4 %         107.7 %    
                                       
LHI to Deposit Ratio, excluding MW Loans   86.9 %         89.1 %         90.7 %         100.4 %         102.4 %    

1 Total LHI does not include deferred fees of $6.9 million, $8.8 million, $10.1 million, $12.7 million and $15.5 million at March 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023 and March 31, 2023, respectively.



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

Asset Quality

  For the Quarter Ended
  Mar 31, 2024   Dec 31, 2023   Sep 30, 2023   Jun 30, 2023   Mar 31, 2023
  (In thousands, except percentages)
NPAs:                  
Nonaccrual loans $ 75,721     $ 79,133     $ 65,676     $ 54,055     $ 31,452  
Nonaccrual PCD loans1   9,419       13,715       13,718       13,721       12,784  
Accruing loans 90 or more days past due2   220       2,975       474       528       296  
Total nonperforming loans held for investment (“NPLs”)   85,360       95,823       79,868       68,304       44,532  
Other real estate owned   18,445                          
Total NPAs $ 103,805     $ 95,823     $ 79,868     $ 68,304     $ 44,532  
                   
Charge-offs:                  
1-4 family residential $     $ (21 )   $     $     $  
Multifamily       (192 )                  
OOCRE   (120 )     (364 )     (375 )           (116 )
NOOCRE   (4,293 )     (5,434 )           (8,215 )      
C&I   (946 )     (3,893 )     (1,929 )     (3,540 )     (1,051 )
Consumer   (71 )     (33 )     (49 )     (92 )     (62 )
Total charge-offs   (5,430 )     (9,937 )     (2,353 )     (11,847 )     (1,229 )
                   
Recoveries:                  
1-4 family residential   1       1             1       1  
NOOCRE               200       150        
C&I   96       387       308       106       364  
Consumer   49       34       14       46       6  
Total recoveries   146       422       522       303       371  
                   
Net charge-offs $ (5,284 )   $ (9,515 )   $ (1,831 )   $ (11,544 )   $ (858 )
                   
Provision for credit losses $ 7,500     $ 9,500     $ 8,627     $ 15,000     $ 9,385  
                   
ACL $ 112,032     $ 109,816     $ 109,831     $ 102,150     $ 98,694  
                   
Asset Quality Ratios:                  
NPAs to total assets   0.82 %     0.77 %     0.65 %     0.55 %     0.35 %
NPAs to total loans and OREO   1.06       0.99       0.83       0.70       0.46  
NPLs to total LHI   0.88       1.00       0.83       0.70       0.46  
NPLs, excluding nonaccrual PCD loans, to total LHI   0.78       0.86       0.69       0.56       0.33  
ACL to total LHI   1.15       1.14       1.14       1.05       1.02  
Net charge-offs to average loans outstanding3   0.22       0.40       0.08       0.48       0.04  

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.
3Annualized ratio for quarterly metrics.



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

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

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

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

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

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

  As of
  Mar 31, 2024   Dec 31, 2023   Sep 30, 2023   Jun 30, 2023   Mar 31, 2023
  (Dollars in thousands, except per share data)
Tangible Common Equity                  
Total stockholders' equity $ 1,538,515     $ 1,531,323     $ 1,491,166     $ 1,491,280     $ 1,493,737  
Adjustments:                  
Goodwill   (404,452 )     (404,452 )     (404,452 )     (404,452 )     (404,452 )
Core deposit intangibles   (26,057 )     (28,495 )     (30,933 )     (33,371 )     (35,808 )
Tangible common equity $ 1,108,006     $ 1,098,376     $ 1,055,781     $ 1,053,457     $ 1,053,477  
Common shares outstanding   54,496       54,338       54,305       54,261       54,229  
                   
Book value per common share $ 28.23     $ 28.18     $ 27.46     $ 27.48     $ 27.54  
Tangible book value per common share $ 20.33     $ 20.21     $ 19.44     $ 19.41     $ 19.43  



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

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

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

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

  As of
  Mar 31, 2024   Dec 31, 2023   Sep 30, 2023   Jun 30, 2023   Mar 31, 2023
  (Dollars in thousands)
Tangible Common Equity                  
Total stockholders' equity $ 1,538,515     $ 1,531,323     $ 1,491,166     $ 1,491,280     $ 1,493,737  
Adjustments:                  
Goodwill   (404,452 )     (404,452 )     (404,452 )     (404,452 )     (404,452 )
Core deposit intangibles   (26,057 )     (28,495 )     (30,933 )     (33,371 )     (35,808 )
Tangible common equity $ 1,108,006     $ 1,098,376     $ 1,055,781     $ 1,053,457     $ 1,053,477  
Tangible Assets                  
Total assets $ 12,708,396     $ 12,394,337     $ 12,346,331     $ 12,470,368     $ 12,609,487  
Adjustments:                  
Goodwill   (404,452 )     (404,452 )     (404,452 )     (404,452 )     (404,452 )
Core deposit intangibles   (26,057 )     (28,495 )     (30,933 )     (33,371 )     (35,808 )
Tangible Assets $ 12,277,887     $ 11,961,390     $ 11,910,946     $ 12,032,545     $ 12,169,227  
Tangible Common Equity to Tangible Assets   9.02 %     9.18 %     8.86 %     8.76 %     8.66 %



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

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

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

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

  For the Quarter Ended
  Mar 31, 2024   Dec 31, 2023   Sep 30, 2023   Jun 30, 2023   Mar 31, 2023
  (Dollars in thousands)
Net income available for common stockholders adjusted for amortization of core deposit intangibles                  
Net income $ 24,156     $ 3,499     $ 32,621     $ 33,730     $ 38,411  
Adjustments:                  
Plus: Amortization of core deposit intangibles   2,438       2,438       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 $ 26,082     $ 5,425     $ 34,547     $ 35,656     $ 40,337  
                   
Average Tangible Common Equity                  
Total average stockholders' equity $ 1,533,868     $ 1,510,286     $ 1,508,170     $ 1,510,625     $ 1,476,576  
Adjustments:                  
Average goodwill   (404,452 )     (404,452 )     (404,452 )     (404,452 )     (404,452 )
Average core deposit intangibles   (27,656 )     (30,093 )     (32,540 )     (34,969 )     (37,361 )
Average tangible common equity $ 1,101,760     $ 1,075,741     $ 1,071,178     $ 1,071,204     $ 1,034,763  
Return on Average Tangible Common Equity (Annualized)   9.52 %     2.00 %     12.80 %     13.35 %     15.81 %



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

Operating Earnings, Pre-tax, Pre-provision Operating Earnings and performance metrics calculated using Operating Earnings and Pre-tax, Pre-provision Operating Earnings, including Diluted Operating Earnings per Share, Operating Return on Average Assets, Pre-tax, Pre-Provision Operating Return on Average Assets, Pre-tax, Pre-Provision Operating Return on Average Loans, Operating Return on Average Tangible Common Equity and Operating Efficiency Ratio. Operating earnings, pre-tax, pre-provision operating earnings and the performance metrics calculated using these metrics, listed below, are non-GAAP measures used by management to evaluate the Company’s financial performance. We calculate (a) operating earnings as net income plus severance payments, plus loss on sale of debt securities AFS, net, 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 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, 2024   Dec 31, 2023   Sep 30, 2023   Jun 30, 2023   Mar 31, 2023
  (Dollars in thousands, except per share data)
Operating Earnings                  
Net income $ 24,156     $ 3,499     $ 32,621     $ 33,730     $ 38,411  
Plus: Severance payments1                     1,194       835  
Plus: Loss on sale of AFS securities, net   6,304                         5,321  
Plus: Equity method investment write-down         29,417                    
Plus: FDIC special assessment         768                    
Operating pre-tax income   30,460       33,684       32,621       34,924       44,567  
Less: Tax impact of adjustments   1,323       2,059             251       1,293  
Operating earnings $ 29,137     $ 31,625     $ 32,621     $ 34,673     $ 43,274  
                   
Weighted average diluted shares outstanding   54,842       54,691       54,597       54,486       54,606  
Diluted EPS $ 0.44     $ 0.06     $ 0.60     $ 0.62     $ 0.70  
Diluted operating EPS $ 0.53     $ 0.58     $ 0.60     $ 0.64     $ 0.79  

1 Severance payments relate to certain restructurings made during the periods disclosed.


  For the Quarter Ended
  Mar 31, 2024   Dec 31, 2023   Sep 30, 2023   Jun 30, 2023   Mar 31, 2023
  (Dollars in thousands)
Pre-Tax, Pre-Provision Operating Earnings                  
Net income $ 24,156     $ 3,499     $ 32,621     $ 33,730     $ 38,411  
Plus: Provision for income taxes   7,237       6,004       9,282       9,725       11,012  
Plus: Provision for credit losses and unfunded commitments   5,959       8,000       7,718       13,871       10,882  
Plus: Severance payments                     1,194       756  
Plus: Loss on sale of AFS securities, net   6,304                         5,321  
Plus: Equity method investment write-down         29,417                    
Plus: FDIC special assessment         768                    
Pre-tax, pre-provision operating earnings $ 43,656     $ 47,688     $ 49,621     $ 58,520     $ 66,382  
                   
Average total assets $ 12,336,042     $ 12,306,634     $ 12,259,062     $ 12,350,223     $ 12,214,313  
Pre-tax, pre-provision operating return on average assets1   1.42 %     1.54 %     1.61 %     1.90 %     2.20 %
                   
Average loans $ 9,563,372     $ 9,581,784     $ 9,625,005     $ 9,657,313     $ 9,501,309  
Pre-tax, pre-provision operating return on average loans1   1.84 %     1.97 %     2.05 %     2.43 %     2.83 %
                   
Average total assets $ 12,336,042     $ 12,306,634     $ 12,259,062     $ 12,350,223     $ 12,214,313  
Return on average assets1   0.79 %     0.11 %     1.06 %     1.10 %     1.28 %
Operating return on average assets1   0.95       1.02       1.06       1.13       1.44  
                   
Operating earnings adjusted for amortization of core deposit intangibles                  
Operating earnings $ 29,137     $ 31,625     $ 32,621     $ 34,673     $ 43,274  
Adjustments:                  
Plus: Amortization of core deposit intangibles   2,438       2,438       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 $ 31,063     $ 33,551     $ 34,547     $ 36,599     $ 45,200  
                   
Average Tangible Common Equity                  
Total average stockholders' equity $ 1,533,868     $ 1,510,286     $ 1,508,170     $ 1,510,625     $ 1,476,576  
Adjustments:                  
Less: Average goodwill   (404,452 )     (404,452 )     (404,452 )     (404,452 )     (404,452 )
Less: Average core deposit intangibles   (27,656 )     (30,093 )     (32,540 )     (34,969 )     (37,361 )
Average tangible common equity $ 1,101,760     $ 1,075,741     $ 1,071,178     $ 1,071,204     $ 1,034,763  
Operating return on average tangible common equity1   11.34 %     12.37 %     12.80 %     13.70 %     17.72 %
                   
Efficiency ratio   62.45 %     77.49 %     54.49 %     49.94 %     48.42 %
Operating efficiency ratio                  
Net interest income $ 92,806     $ 95,533     $ 99,361     $ 100,831     $ 103,389  
Noninterest income   6,662       (17,792 )     9,674       13,692       13,531  
Plus: Loss on sale of AFS securities, net   6,304                         5,321  
Plus: Equity method investment write-down         29,417                    
Operating noninterest income   12,966       11,625       9,674       13,692       18,852  
Noninterest expense   62,116       60,238       59,414       57,197       56,615  
Less: FDIC special assessment         768                    
Less: Severance payments                     1,194       756  
Operating noninterest expense $ 62,116     $ 59,470     $ 59,414     $ 56,003     $ 55,859  
Operating efficiency ratio   58.73 %     55.50 %     54.49 %     48.90 %     45.63 %

1 Annualized ratio for quarterly metrics.

 


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Source: Veritex Holdings, Inc.