0001501570-20-000096 | 10-K | XBRL Viewer

Schedule of Assets Measured at Fair Value on a Recurring Basis

The following table summarizes assets measured at fair value on a recurring basis as of December 31, 2019 and 2018, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:


	December 31, 2019
	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
Financial Assets:
Available for sale securities	$	—	$	964,365	$	—	$	964,365
Equity securities with a readily determinable fair value	11,122		—		—		11,122
Loans held for sale ⁽¹⁾	—		10,068		—		10,068
Correspondent interest rate swaps	—		105		—		105
Customer interest rate swaps	—		4,393		—		4,393
Correspondent interest rate caps and collars	—		11		—		11
Commercial loan interest rate floor	—		3,353		—		3,353
Financial Liabilities:
Correspondent interest rate swaps	—		4,736		—		4,736
Customer interest rate swaps	—		84		—		84
Customer interest rate caps and collars	—		11		—		11

⁽¹⁾ Represents loans held for sale elected to be carried at fair value upon origination or acquisition.


	December 31, 2018
	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
Financial Assets:
Available for sale securities	$	—	$	262,695	$	—	$	262,695

Schedule of Assets Measured at Fair Value on a Non-recurring Basis

The following table summarizes assets measured at fair value on a non-recurring basis as of December 31, 2019 and 2018, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:


	Fair Value
	Measurements Using
	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
As of December 31, 2019
Assets:
Impaired loans	$	—	$	—	$	4,504	$	4,504
Other real estate owned	$	—	$	—	$	5,995	$	5,995
As of December 31, 2018
Assets:
Impaired loans	$	—	$	—	$	2,584	$	2,584

Schedule of Estimated Fair Values and Carrying Values of All Financial Instruments

The estimated fair values and carrying values of financial instruments not measured at fair value on a recurring basis as of December 31, 2019 and 2018 were as follows:


			Fair Value
	Carrying
	Amount		Level 1		Level 2		Level 3
December 31, 2019
Financial assets:
Cash and cash equivalents	$	251,550	$	—	$	251,550	$	—
Held to maturity investments	32,965		—		34,810		—
Loans held for sale	14,080		—		14,080		—
Loans held for investment, mortgage warehouse	183,628		—		—		185,060
Loans held for investment	5,737,577		—		—		5,714,885
Accrued interest receivable	19,508		—		19,508		—
Bank-owned life insurance	80,915		—		80,915		—
Servicing asset	3,113		—		3,113		—
Equity securities without a readily determinable fair value	3,575		N/A		N/A		N/A
Federal Home Loan Bank and Federal Reserve Bank stock	68,348		N/A		N/A		N/A
Financial liabilities:
Deposits	$	5,894,350	$	—	$	5,692,217	$	—
Advances from FHLB	677,870		—		708,692		—
Accrued interest payable	5,893		—		5,893		—
Subordinated debentures and subordinated notes	145,571		—		145,571		—
Securities sold under agreement to repurchase	2,353		—		2,353		—

December 31, 2018
Financial assets:
Cash and cash equivalents	$	84,449	$	—	$	84,449	$	—
Loans held for sale	1,258		—		1,258		—
Loans held for investment	2,555,494		—		—		2,553,376
Accrued interest receivable	8,828		—		8,828		—
Bank-owned life insurance	22,064		—		22,064		—
Servicing asset	834		—		834		—
Equity securities without readily determinable fair value	2,050		N/A		N/A		N/A
Federal Home Loan Bank and Federal Reserve Bank stock	15,281		N/A		N/A		N/A

Financial liabilities:
Deposits	$	2,622,428	$	—	$	2,506,379	$	—
Advances from FHLB	28,019		—		28,063		—
Accrued interest payable	1,135		—		1,135		—
Subordinated debentures and subordinated notes	16,691		—		16,691		—

Recent Accounting Pronouncements (Details) - Accounting Standards Update 2016-13 - Subsequent Event $ in Thousands	Jan. 01, 2020 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Off-balance sheet, credit loss, liability	$ 2,400
Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Financing receivable, allowance for credit loss	18,300
Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Financing receivable, allowance for credit loss	19,600
Scenario, Previously Reported
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Financing receivable, allowance for credit loss	(29,834)
Restatement Adjustment \| Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Financing receivable, allowance for credit loss	69,420
Restatement Adjustment \| Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Financing receivable, allowance for credit loss	71,140
Retained Earnings \| Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of new accounting principle in period of adoption	15,990
Retained Earnings \| Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of new accounting principle in period of adoption	$ 17,350

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities:
Net income	$ 90,739	$ 39,341	$ 15,152
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of fixed assets and intangibles	15,933	7,077	2,836
Net (accretion) amortization of time deposit premium, debt discount, net and debt issuance costs	(8,950)	2	45
Provision for loan losses	21,514	6,603	5,114
Accretion of loan purchase discount	(28,603)	(8,135)	(3,783)
Stock-based compensation expense	21,652	4,048	1,939
Compensation expense - liability-classified awards	1,403	0	0
Excess tax benefit from stock compensation	205	(248)	(268)
Deferred tax expense	9,053	2,707	5,143
Net amortization of premiums on investment securities	2,875	1,931	1,771
Unrealized gains on equity securities recognized in earnings	(325)	0	0
Net loss (gain) on sales of investment securities	1,852	64	(222)
Change in fair value of held for sale Small Business Administration ("SBA") loans using fair value option	(303)	0	0
Gain on sales of mortgage loans held for sale	(475)	(708)	(942)
Gain on sales of SBA loans	(4,388)	(2,348)	(1,940)
Impairment on servicing asset	188	0	0
Net gain on sales of other real estate owned	0	0	(259)
Originations of loans held for sale	(37,166)	(35,936)	(48,567)
Proceeds from sale of loans held for sale	34,483	36,227	53,876
Write down on other real estate owned	0	156	37
Net loss (gain) on sale of branches	474	(349)	0
Decrease (increase) in other assets	2,196	(425)	(1,204)
(Decrease) increase in accounts payable, accrued expenses and accrued interest payable	(16,387)	969	(1,477)
Net cash provided by operating activities	103,960	50,388	26,662
Cash flows from investing activities:
Cash settlement for sale of held for sale branches	7,153	(31,810)	0
Purchases of securities available for sale	(745,297)	(811,055)	(839,963)
Sales of securities available for sale	567,718	40,822	159,869
Proceeds from maturities, calls and pay downs of available for sale securities	131,788	731,572	773,702
Purchases of securities held to maturity	(8,084)	0	0
Maturity, calls and paydowns of securities held to maturity	1,249	0	0
(Purchases) sales of other investments, net	(23,577)	(9,090)	2,481
Net loans originated	(151,559)	(344,737)	(229,402)
Proceeds from sale of SBA loans	69,218	29,010	30,355
Net additions to bank premises and equipment	(7,658)	(5,013)	(40,571)
Net intangible assets and lease obligations related to the purchase of our corporate building	0	0	(4,181)
Proceeds from sales of other real estate owned and repossessed assets	0	291	1,920
Net cash used in investing activities	(46,339)	(400,010)	(124,855)
Cash flows from financing activities:
Net change in deposits	(195,761)	344,101	18,065
Net change in advances from Federal Home Loan Bank	349,851	(43,145)	(47,142)
Net proceeds from sale of common stock in public offering	0	0	56,681
Net change in other borrowings	0	(15,000)	10,375
Issuance of subordinated note	75,000	0	0
Redemption of preferred stock	0	0	(24,500)
Dividends paid on preferred stock	0	0	(227)
Net change in securities sold under agreement to repurchase	(873)	0	0
Proceeds from exercise of employee stock options	3,938	454	175
Payments to tax authorities for stock-based compensation	(1,346)	(593)	(318)
Proceeds from payments on ESOP Loan	0	109	109
Purchase of treasury stock	(94,533)	0	0
Dividends paid	(26,796)	0	0
Offering costs paid in connection with acquisitions	0	(899)	(772)
Net cash provided by financing activities	109,480	285,027	12,446
Net (decrease) increase in cash and cash equivalents	167,101	(64,595)	(85,747)
Cash and cash equivalents at beginning of year	84,449	149,044	234,791
Cash and cash equivalents at end of year	251,550	84,449	149,044
Sovereign Bancshares, Inc.
Cash flows from investing activities:
Cash paid in excess of cash received for the acquisitions	0	0	(11,440)
Liberty Bancshares, Inc.
Cash flows from investing activities:
Cash paid in excess of cash received for the acquisitions	0	0	32,375
Green Bancorp, Inc.
Cash flows from investing activities:
Cash paid in excess of cash received for the acquisitions	$ 112,710	$ 0	$ 0

Summary of Significant Accounting Policies - Leases (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019
Lessee, Lease, Description [Line Items]
Operating lease, right-of-use asset	$ 13,205
Operating lease liability	$ 14,095
Accounting Standards Update 2016-02
Lessee, Lease, Description [Line Items]
Operating lease, right-of-use asset		$ 18,705
Operating lease liability		$ 18,753

Securities - Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Available for sale, amortized cost
Due in one year or less		$ 2,963
Due from one year to five years	$ 4,904	34,933
Due from five years to ten years	74,596	19,682
Due after ten years	72,453	18,311
Total investment securities available for sale, single maturity date	151,953	75,889
Total investment securities available for sale, amortized cost basis	942,131	266,404
Available for sale, fair value
Due in one year or less		2,966
Due from one year to five years	5,100	34,854
Due from five years to ten years	76,403	19,468
Due after ten years	76,148	18,105
Total investment securities available for sale	157,651	75,393
Total investment securities available for sale, fair value	964,365	262,695
Held-to-maturity, amortized cost
Due from one year to five years	0
Due from five years to ten years	1,204
Due after ten years	21,331
Total investment securities held to maturity	22,535
Amortized cost	32,965	0
Held-to-maturity, fair value
Due from one year to five years	0
Due from five years to ten years	1,219
Due after ten years	22,666
Total investment held to maturity	23,885
Total investment securities, held to maturity, fair value	34,810
Mortgage-backed securities
Available for sale, amortized cost
Amortized cost	720,214	190,023
Total investment securities available for sale, amortized cost basis	288,938	97,117
Available for sale, fair value
Fair value	734,428	186,810
Total investment securities available for sale, fair value	298,190	95,051
Held-to-maturity, amortized cost
Amortized cost	10,430
Amortized cost	8,621
Held-to-maturity, fair value
Fair value	10,925
Total investment securities, held to maturity, fair value	9,073
Asset-backed securities
Available for sale, amortized cost
Amortized cost	69,964	492
Total investment securities available for sale, amortized cost basis	69,964	492
Available for sale, fair value
Fair value	72,286	492
Total investment securities available for sale, fair value	72,286	$ 492
Held-to-maturity, amortized cost
Amortized cost	0
Held-to-maturity, fair value
Fair value	$ 0

Business Combinations - Loans Acquired (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Contractual principal balance	$ 57,811		$ 22,309
Green Bancorp, Inc.
Business Acquisition [Line Items]
Total fair value		$ 3,245,248
Contractual principal balance		3,335,060
Financial Asset Acquired with Credit Deterioration \| Green Bancorp, Inc.
Business Acquisition [Line Items]
Total fair value		182,247
Contractual principal balance		242,013
Contractually required principal and interest		277,773
Non-accretable difference		75,656
Cash flows expected to be collected		202,117
Accretable difference		19,870
Real Estate \| Green Bancorp, Inc.
Business Acquisition [Line Items]
Total fair value		1,915,944
Real Estate \| Financial Asset Acquired with Credit Deterioration \| Green Bancorp, Inc.
Business Acquisition [Line Items]
Total fair value		132,006
Commercial \| Green Bancorp, Inc.
Business Acquisition [Line Items]
Total fair value		1,149,069
Commercial \| Financial Asset Acquired with Credit Deterioration \| Green Bancorp, Inc.
Business Acquisition [Line Items]
Total fair value		50,057
Mortgage warehouse \| Green Bancorp, Inc.
Business Acquisition [Line Items]
Total fair value		166,850
Mortgage warehouse \| Financial Asset Acquired with Credit Deterioration \| Green Bancorp, Inc.
Business Acquisition [Line Items]
Total fair value		0
Consumer \| Green Bancorp, Inc.
Business Acquisition [Line Items]
Total fair value		13,385
Consumer \| Financial Asset Acquired with Credit Deterioration \| Green Bancorp, Inc.
Business Acquisition [Line Items]
Total fair value		184
Other acquired loans \| Green Bancorp, Inc.
Business Acquisition [Line Items]
Total fair value		3,063,001
Contractual principal balance		3,093,047
Other acquired loans \| Real Estate \| Green Bancorp, Inc.
Business Acquisition [Line Items]
Total fair value		1,783,938
Other acquired loans \| Commercial \| Green Bancorp, Inc.
Business Acquisition [Line Items]
Total fair value		1,099,012
Other acquired loans \| Mortgage warehouse \| Green Bancorp, Inc.
Business Acquisition [Line Items]
Total fair value		166,850
Other acquired loans \| Consumer \| Green Bancorp, Inc.
Business Acquisition [Line Items]
Total fair value		$ 13,201

Borrowed Funds (Tables)

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Schedule of Junior Subordinated Debentures and Subordinated Notes

Borrowed funds in the accompanying consolidated balance sheets are as follows:


	December 31,
	2019		2018
Junior subordinated debentures ⁽¹⁾	$	30,023	$	11,702
Subordinated notes ⁽²⁾	115,548		4,989
	$	145,571	$	16,691

⁽¹⁾ Junior subordinated debentures are net of a discount of $3,845 as of December 31, 2019. There was no discount as of December 31, 2018.

⁽²⁾ Subordinated notes include a premium of $2,081 and debt issuance costs of $1,533 as of December 31, 2019 and a discount of $11 as of December 31, 2018.

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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Property, Plant and Equipment [Abstract]

Bank Premises and Equipment

12 Months Ended

Dec. 31, 2019

Bank Premises and Equipment

Bank premises and equipment in the accompanying consolidated balance sheets are summarized as follows:


	December 31,
	2019		2018
Building and improvements	$	60,959	$	37,526
Site improvements	2,633		672
Tenant improvements	744		744
Leasehold improvements	5,542		4,456
Land	45,878		33,393
Furniture, fixtures and equipment	16,073		9,426
Construction in Progress	608		2,182
	132,437		88,399
Less accumulated depreciation and amortization	13,901		9,990
	$	118,536	$	78,409

The Company recorded depreciation and amortization expense of approximately $3,911, $3,017 and $1,566 for the years ended December 31, 2019, 2018 and 2017, respectively.

Summary of Significant Accounting Policies - Investment Securities (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Other-than-temporary impairment losses reflected in earnings as realized losses	$ 0	$ 0	$ 0
Impairment loss, equity securities	0	0
Changes in fair value of loans, gain (loss)	$ 303,000	$ 0

Loans and Allowance for Loan Losses - Trouble Debt Restructuring (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($) Loan	Dec. 31, 2018 USD ($) Loan
Troubled Debt Restructuring
Recorded investment in TDRs	$ 2,142	$ 1,171
Number of Loans \| Loan	2	3
Pre- Modification Outstanding Recorded Investment	$ 1,034	$ 628
Commercial
Troubled Debt Restructuring
Number of Loans \| Loan	2	3
Pre- Modification Outstanding Recorded Investment	$ 1,034	$ 628
Adjusted Interest Rate
Troubled Debt Restructuring
Post-Modification Outstanding Recorded Investment	0	0
Adjusted Interest Rate \| Commercial
Troubled Debt Restructuring
Post-Modification Outstanding Recorded Investment	0	0
Extended Maturity
Troubled Debt Restructuring
Post-Modification Outstanding Recorded Investment	115	612
Extended Maturity \| Commercial
Troubled Debt Restructuring
Post-Modification Outstanding Recorded Investment	115	612
Extended Maturity and Restructured Payments
Troubled Debt Restructuring
Post-Modification Outstanding Recorded Investment	919	0
Extended Maturity and Restructured Payments \| Commercial
Troubled Debt Restructuring
Post-Modification Outstanding Recorded Investment	919	0
Extended Maturity, Restructured Payments and Adjusted Interest Rate
Troubled Debt Restructuring
Post-Modification Outstanding Recorded Investment	0	0
Extended Maturity, Restructured Payments and Adjusted Interest Rate \| Commercial
Troubled Debt Restructuring
Post-Modification Outstanding Recorded Investment	$ 0	$ 0

Stock and Incentive Plans - 2010 Plan - Restricted Stock Units (Details) - 2010 Stock Option and Equity Incentive Plan - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Restricted stock units
Activity in shares
Nonvested at the beginning of the period (in shares)	0	24,250	27,750
Forfeited (in shares)		(500)	(2,500)
Vested into shares (in shares)		(23,750)	(1,000)
Nonvested at the end of the period (in shares)	0	0	24,250
Weighted Average Exercise Price
Nonvested at the beginning of the period (in dollars per share)	$ 0	$ 13.19	$ 11.92
Forfeited (in dollars per share)		10.85	10.85
Vested into shares (in dollars per share)		12.14	10.85
Nonvested at the end of the period (in dollars per share)	$ 0	$ 0	$ 13.19
Unrecognized compensation expense (in dollars)	$ 0	$ 0	$ 15,000
Non Performance Based Stock Options
Weighted Average Exercise Price
Unrecognized compensation expense (in dollars)	0	3,000	8,000
Non-performance based stock options exercised	454,000	803,000	488,000
Nonperformance-based restricted stock units vested	$ 0	$ 713,000	$ 26,000

Loans and Allowance for Loan Losses Loans and Allowance for Loan Losses - PCI Loans (Details) - PCI loans - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Financing Receivable, Allowance for Credit Losses [Line Items]
Carrying amount	$ 126,125	$ 39,528
Outstanding balance	$ 157,417	$ 49,902

Loans and Allowance for Loan Losses - Nonaccrual (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Loans and Allowance for Loan Losses
Non-accrual loans, excluding purchased credit impaired loans	$ 29,779,000	$ 24,745,000
Loans and leases receivable, impaired, interest lost on nonaccrual loans	1,672,000	724,000
Commercial
Loans and Allowance for Loan Losses
Non-accrual loans, excluding purchased credit impaired loans	5,672,000	19,769,000
Mortgage warehouse
Loans and Allowance for Loan Losses
Non-accrual loans, excluding purchased credit impaired loans	0	0
Consumer
Loans and Allowance for Loan Losses
Non-accrual loans, excluding purchased credit impaired loans	54,000	2,000
Construction and land \| Real Estate
Loans and Allowance for Loan Losses
Non-accrual loans, excluding purchased credit impaired loans	567,000	2,399,000
Farmland \| Real Estate
Loans and Allowance for Loan Losses
Non-accrual loans, excluding purchased credit impaired loans	0	0
Commercial Real Estate \| Real Estate
Loans and Allowance for Loan Losses
Non-accrual loans, excluding purchased credit impaired loans	21,905,000	2,575,000
1 - 4 family residential \| Real estate \| Real Estate
Loans and Allowance for Loan Losses
Non-accrual loans, excluding purchased credit impaired loans	1,581,000	0
Multi-family residential \| Real estate \| Real Estate
Loans and Allowance for Loan Losses
Non-accrual loans, excluding purchased credit impaired loans	0	0
PCI loans
Loans and Allowance for Loan Losses
Loans and leases receivable, impaired, interest lost on nonaccrual loans	$ 0	$ 16,902,000

Stock and Incentive Plans - Omnibus Plan (Details) - USD ($) $ in Thousands		1 Months Ended	12 Months Ended
	Jan. 01, 2019	Jan. 31, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Omnibus Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Accelerated compensation cost			$ 5,536
Stock based compensation expense			3,044	$ 4,021	$ 1,876
Nonperformance-based stock options \| Omnibus Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares that accelerated vested (in shares)	133,455
Accelerated compensation cost			1,418	$ 5,533
Performance Based Restricted Stock Units \| Omnibus Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares that accelerated vested (in shares)	51,284
Percentage of outstanding shares canceled		67.00%
Number of shares canceled (in shares)		12,704
Stock option \| Omnibus Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares that accelerated vested (in shares)	320,405
Merger and Acquisition Expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense			$ 10,129

Fair Value Disclosures - Recurring Basis (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Assets:
Equity securities	$ 11,122,000
Recurring
Assets:
Available-for-sale Securities	964,365,000	$ 262,695,000
Equity securities	11,122,000
Loans held for sale	10,068,000
Liabilities measured at fair value		0
Transfer of assets from Level 2 to Level 3	0	0
Transfer of assets from Level 3 to Level 2	0	0
Recurring \| Level 1
Assets:
Available-for-sale Securities	0	0
Equity securities	11,122,000
Loans held for sale	0
Recurring \| Level 2
Assets:
Available-for-sale Securities	964,365,000	262,695,000
Equity securities	0
Loans held for sale	10,068,000
Recurring \| Level 3
Assets:
Available-for-sale Securities	0	$ 0
Equity securities	0
Loans held for sale	0
Interest rate swaps \| Financial institution counterparty: \| Recurring
Assets:
Derivative asset, fair value	105,000
Derivative liability, fair value	4,736,000
Interest rate swaps \| Financial institution counterparty: \| Recurring \| Level 1
Assets:
Derivative asset, fair value	0
Derivative liability, fair value	0
Interest rate swaps \| Financial institution counterparty: \| Recurring \| Level 2
Assets:
Derivative asset, fair value	105,000
Derivative liability, fair value	4,736,000
Interest rate swaps \| Financial institution counterparty: \| Recurring \| Level 3
Assets:
Derivative asset, fair value	0
Derivative liability, fair value	0
Interest rate swaps \| Commercial customer counterparty: \| Recurring
Assets:
Derivative asset, fair value	4,393,000
Derivative liability, fair value	84,000
Interest rate swaps \| Commercial customer counterparty: \| Recurring \| Level 1
Assets:
Derivative asset, fair value	0
Derivative liability, fair value	0
Interest rate swaps \| Commercial customer counterparty: \| Recurring \| Level 2
Assets:
Derivative asset, fair value	4,393,000
Derivative liability, fair value	84,000
Interest rate swaps \| Commercial customer counterparty: \| Recurring \| Level 3
Assets:
Derivative asset, fair value	0
Derivative liability, fair value	0
Interest rate caps and collars \| Financial institution counterparty: \| Recurring
Assets:
Derivative asset, fair value	11,000
Derivative liability, fair value	11,000
Interest rate caps and collars \| Financial institution counterparty: \| Recurring \| Level 1
Assets:
Derivative asset, fair value	0
Derivative liability, fair value	0
Interest rate caps and collars \| Financial institution counterparty: \| Recurring \| Level 2
Assets:
Derivative asset, fair value	11,000
Derivative liability, fair value	11,000
Interest rate caps and collars \| Financial institution counterparty: \| Recurring \| Level 3
Assets:
Derivative asset, fair value	0
Derivative liability, fair value	0
Interest rate floor \| Financial institution counterparty: \| Recurring
Assets:
Derivative asset, fair value	3,353,000
Interest rate floor \| Financial institution counterparty: \| Recurring \| Level 1
Assets:
Derivative asset, fair value	0
Interest rate floor \| Financial institution counterparty: \| Recurring \| Level 2
Assets:
Derivative asset, fair value	3,353,000
Interest rate floor \| Financial institution counterparty: \| Recurring \| Level 3
Assets:
Derivative asset, fair value	$ 0

Derivative Financial Instruments - AOCI Reclassification (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)
Interest rate floor \| Designated as hedging instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gain recognized in other comprehensive income on cash flow derivative	$ 1,497
Interest rate floor \| Interest Income \| Designated as hedging instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Loss recognized in interest income on cash flow derivative (amount excluded from effectiveness testing)	(808)
Interest rate floor \| Noninterest income \| Designated as hedging instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gain (loss) recognized in noninterest income	0
Interest rate swaps \| Non-hedging derivatives
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gain recognized in other comprehensive income on cash flow derivative	0
Loss recognized in interest income on cash flow derivative (amount excluded from effectiveness testing)	0
Interest rate swaps \| Noninterest income \| Non-hedging derivatives
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gain (loss) recognized in noninterest income	$ 550

Stock and Incentive Plans - Fair Value Options Exercised or Restricted Stock Units Vested (Details) - Omnibus Plan - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Nonperformance-based stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonperformance-based stock options exercised	$ 334	$ 383	$ 41
Non-performance based restricted stock units vested	6,113	2,128	568
Performance Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-performance based restricted stock units vested	$ 1,089	$ 745	$ 530

Financial Instruments with Off-Balance Sheet Risk (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of the Approximate Amounts of Financial Instruments with Off-balance Sheet Risk

The following table sets forth the approximate amounts of these financial instruments as of December 31, 2019 and 2018:


	December 31,
	2019		2018
Commitments to extend credit	$	1,950,350	$	962,436
Standby and commercial letters of credit	27,196		5,431
	$	1,977,546	$	967,867

Summary of Significant Accounting Policies - Marketing Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Marketing expense	$ 3,259	$ 1,783	$ 1,293

Commitment and Contingencies

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Litigation

The Company may from time to time be involved in legal actions arising from normal business activities. Management believes that these actions in which the Company or any of its subsidiaries is a defendant are without merit or that the ultimate liability, if any, resulting from them will not materially affect the financial position or results of operations of the Company.

Qualified Affordable Housing Investment

Starting in 2017, the Company began investing in certain qualified housing projects. At December 31, 2019 and 2018, the balance of the investment for qualified affordable housing projects was $3,292 and $3,663, respectively. This balance is reflected in other assets on the consolidated balance sheets. The total unfunded commitment related to the investment in a qualified housing project totaled $1,091 and $2,510 at December 31, 2019 and 2018, respectively, which is reflected in accrued interest payable on the consolidated balance sheets. The Company expects to fulfill this commitment during the year ending 2034.

As of December 31, 2019, the expected future minimum commitment payments under the Company’s qualified affordable housing investment for each of the following five years were:


Year Ending December 31,	Future Minimum Payments
2020	$	823
2021	123
2022	17
2023	17
2024	29
Thereafter	82
Total	$	1,091

Refer to Note 18 "Financial Instruments with Off-Balance Sheet Risk" for further discussion on commitments to extend credit and standyby and commercial letters of credit.

Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets

Intangible assets are initially recognized based on a valuation performed as of the acquisition date and are amortized on a straight-line basis over their estimated useful lives of the respective intangible assets as follows:


Core deposit intangible			7 - 10 years
In-place lease intangible			Lease term

Intangible assets in the accompanying consolidated balance sheets are summarized as follows:


	December 31, 2019
	Weighted	Gross				Net
	Amortization	Intangible		Accumulated		Intangible
	Period	Asset		Amortization		Asset
Core deposit intangibles	7.0 years	$	81,769	$	14,206	$	67,563
Servicing asset	6.7 years	5,726		2,613		3,113
Intangible lease assets	1.4 years	4,765		3,178		1,587
		$	92,260	$	19,997	$	72,263


	December 31, 2018
	Weighted	Gross				Net
	Amortization	Intangible		Accumulated		Intangible
	Period	Asset		Amortization		Asset
Core deposit intangibles	7.7 years	$	16,051	$	4,376	$	11,675
Servicing asset	6.8 years	2,091		787		1,304
Intangible lease assets	2.7 years	5,282		2,365		2,917
		$	23,424	$	7,528	$	15,896

Schedule of the Estimated Aggregate Future Amortization Expense for Intangible Assets

The estimated aggregate future amortization expense for intangible assets remaining as of December 31, 2019 was as follows:


Year	Amount
2020	$	11,136
2021	10,631
2022	10,445
2023	10,307
2024	10,217
Thereafter	19,527
	$	72,263

As of December 31, 2019, the expected future minimum commitment payments under the Company’s qualified affordable housing investment for each of the following five years were:


Year Ending December 31,	Future Minimum Payments
2020	$	823
2021	123
2022	17
2023	17
2024	29
Thereafter	82
Total	$	1,091

Summary of Significant Accounting Policies - Bank Premises and Equipment (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Impairment charges	$ 0	$ 0	$ 0
Site improvements
Property, Plant and Equipment [Line Items]
Estimated useful lives	15 years
Minimum \| Building and improvements
Property, Plant and Equipment [Line Items]
Estimated useful lives	10 years
Minimum \| Furniture and equipment
Property, Plant and Equipment [Line Items]
Estimated useful lives	3 years
Maximum \| Building and improvements
Property, Plant and Equipment [Line Items]
Estimated useful lives	40 years
Maximum \| Furniture and equipment
Property, Plant and Equipment [Line Items]
Estimated useful lives	10 years

Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

The provision for income taxes is summarized as follows:


	Year Ended December 31,
	2019		2018		2017
Income tax expense (benefit):
Current	$	16,068	$	8,189	$	7,886
Deferred	9,053		2,707		5,143
	$	25,121	$	10,896	$	13,029

The table below reconciles income tax expense for the years ended December 31, 2019, 2018 and 2017 computed by applying the applicable U.S. federal statutory income tax rate, reconciled to the tax expense computed at the effective income tax rate:


	Year Ended December 31,
	2019			2018			2017
Federal incomes tax expense rate at 21% for December 31, 2019 and 2018 and 35% for December 31, 2017	$	24,330		$	10,550		$	9,863
Bank-owned life insurance	(422)			(124)			(206)
Non-deductible transaction costs	308			727			202
Tax exempt interest income	(391)			(169)			(178)
Impact of IRS Settlement	(1,556)			—			—
Deferred tax asset re-measurement due to the Tax Act	—			34			3,051
162(m) Disallowance	1,512			—			—
State Taxes	760			110			—
Other	580			(232)			297
Total income tax expense	$	25,121		$	10,896		$	13,029
Effective tax rate	21.7		%	21.7		%	46.2		%

Income tax expense for 2017 was impacted by the adjustment of our deferred tax assets and liabilities related to the reduction in the U.S. federal statutory income tax rate to 21% under the Tax Cuts and Jobs Act. As a result of the new law, and as detailed in the table above, we recognized a provisional net tax expense totaling $3,051 in 2017 and an additional net tax expense resulting from a finalization of those calculations totaling $34 in 2018.

Deferred income taxes reflect the net tax effects of temporary differences between the recorded amounts of assets and liabilities for financial reporting purposes, and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows:


	December 31,
	2019		2018
Deferred tax assets:

Allowance for loan losses	$	6,232	$	3,985
Equity compensation	3,703		916
Purchase premium/loan discounts	9,347		2,176
Net unrealized gain on securities available for sale	—		779
Lease liability	2,960		—
Purchase securities	2,945		—
Other	3,930		1,336
Total deferred tax assets	29,117		9,192
Deferred tax liabilities:
Intangibles	13,527		2,187
Bank premises and equipment	4,811		1,959
Right of use asset	2,773		—
Net unrealized gain on securities available for sale	4,669		—
Other	1,904		896
Total deferred tax liabilities	27,684		5,042
Net deferred tax asset	$	1,433	$	4,150

Included within other assets in the accompanying consolidated balance sheet as of December 31, 2019 is a current tax receivable of $10,403 and a deferred tax asset of $1,433. Additionally, included within accounts payable and accrued expenses

in the accompanying consolidated balance sheets as of December 31, 2019 is a $780 current state tax payable. Included in the accompanying consolidated balance sheet as of December 31, 2018 is a current tax receivable of $4,982 and a net deferred tax asset of $4,150 in other assets.

The following table provides a rollforward of the Company's gross federal and state unrecognized tax benefits for the years ending December 31, 2019, 2018 and 2017. During the year ending December 31, 2019, the Company recorded an uncertain tax position associated with the acquisition of Green and subsequently reached a settlement with the taxing authority.


	December 31, 2019		December 31, 2018		December 31, 2017
Unrecognized tax benefits at the beginning of the year:	$	—	$	—	$	—
Gross increases, related to tax positions recognized as part of Green acquisition	2,155		—		—
Settlement with taxing authority	(2,155)		—		—
Unrecognized tax benefits at the end of the year	$	—	$	—	$	—

The Company has federal net operating loss ("NOL") carryforwards that are subject to a pre-tax limitation under Section 382 of approximately $3,400 as of December 31, 2019. The federal NOL carryforwards will expire with the 2031 tax year, if unused.

The Company files income tax returns in the U.S. federal jurisdiction and U.S. state jurisdictions. As of December 31, 2019, the Company is no longer subject to U.S. federal income tax examinations for tax years prior to 2016 and state income tax examinations for tax years prior to 2015.

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Components of Provision for Income Taxes

The provision for income taxes is summarized as follows:


	Year Ended December 31,
	2019		2018		2017
Income tax expense (benefit):
Current	$	16,068	$	8,189	$	7,886
Deferred	9,053		2,707		5,143
	$	25,121	$	10,896	$	13,029

Schedule of Effective Income Tax Rate Reconciliation


	Year Ended December 31,
	2019			2018			2017
Federal incomes tax expense rate at 21% for December 31, 2019 and 2018 and 35% for December 31, 2017	$	24,330		$	10,550		$	9,863
Bank-owned life insurance	(422)			(124)			(206)
Non-deductible transaction costs	308			727			202
Tax exempt interest income	(391)			(169)			(178)
Impact of IRS Settlement	(1,556)			—			—
Deferred tax asset re-measurement due to the Tax Act	—			34			3,051
162(m) Disallowance	1,512			—			—
State Taxes	760			110			—
Other	580			(232)			297
Total income tax expense	$	25,121		$	10,896		$	13,029
Effective tax rate	21.7		%	21.7		%	46.2		%

Schedule of Significant Components of the Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows:


	December 31,
	2019		2018
Deferred tax assets:

Allowance for loan losses	$	6,232	$	3,985
Equity compensation	3,703		916
Purchase premium/loan discounts	9,347		2,176
Net unrealized gain on securities available for sale	—		779
Lease liability	2,960		—
Purchase securities	2,945		—
Other	3,930		1,336
Total deferred tax assets	29,117		9,192
Deferred tax liabilities:
Intangibles	13,527		2,187
Bank premises and equipment	4,811		1,959
Right of use asset	2,773		—
Net unrealized gain on securities available for sale	4,669		—
Other	1,904		896
Total deferred tax liabilities	27,684		5,042
Net deferred tax asset	$	1,433	$	4,150

Schedule of Unrecognized Tax Benefits Roll Forward


	December 31, 2019		December 31, 2018		December 31, 2017
Unrecognized tax benefits at the beginning of the year:	$	—	$	—	$	—
Gross increases, related to tax positions recognized as part of Green acquisition	2,155		—		—
Settlement with taxing authority	(2,155)		—		—
Unrecognized tax benefits at the end of the year	$	—	$	—	$	—

Employee Benefits (Tables)

12 Months Ended

Dec. 31, 2019

Retirement Benefits [Abstract]

Summary of ESOP Shares

The following is a summary of the ESOP shares as of December 31, 2019 and December 31, 2018.


	December 31,
	2019	2018
Allocated shares	63,040	63,040
Unearned shares	—	—
Total ESOP shares	63,040	63,040

Capital Requirements and Restrictions on Retained Earnings (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Total capital (to risk-weighted assets)
Actual Amount	$ 917,939,000	$ 394,419,000
Actual Ratio (as a percent)	13.10%	12.98%
For Capital Adequacy Purposes Amount	$ 560,573,000	$ 243,093,000
For Capital Adequacy Purposes Ratio (as a percent)	8.00%	8.00%
Tier 1 capital (to risk-weighted assets)
Actual Amount	$ 771,679,000	$ 370,175,000
Actual Ratio (as a percent)	11.02%	12.18%
For Capital Adequacy Purposes Amount	$ 420,152,000	$ 182,352,000
For Capital Adequacy Purposes Ratio (as a percent)	6.00%	6.00%
Common equity tier 1 (to risk-weighted assets)
Common Equity Tier One Capital	$ 742,675,000	$ 358,473,000
Common Equity Tier One Capital Ratio (as a percent)	10.60%	11.80%
Common Equity Tier One Capital Required for Capital Adequacy	$ 315,287,000	$ 136,706,000
For Capital Adequacy Purposes Amount (as a percent)	4.50%	4.50%
Tier 1 capital (to average assets)
Actual Amount	$ 771,679,000	$ 370,175,000
Actual Ratio (as a percent)	10.17%	12.04%
For Capital Adequacy Purposes Amount	$ 303,512,000	$ 122,982,000
For Capital Adequacy Purposes Ratio (as a percent)	4.00%	4.00%
Bank
Total capital (to risk-weighted assets)
Actual Amount	$ 870,838,000	$ 353,640,000
Actual Ratio (as a percent)	12.44%	11.64%
For Capital Adequacy Purposes Amount	$ 560,024,000	$ 243,052,000
For Capital Adequacy Purposes Ratio (as a percent)	8.00%	8.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 700,031,000	$ 303,814,000
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	10.00%	10.00%
Tier 1 capital (to risk-weighted assets)
Actual Amount	$ 840,126,000	$ 334,385,000
Actual Ratio (as a percent)	12.00%	11.01%
For Capital Adequacy Purposes Amount	$ 420,063,000	$ 182,226,000
For Capital Adequacy Purposes Ratio (as a percent)	6.00%	6.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 560,084,000	$ 242,968,000
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	8.00%	8.00%
Common equity tier 1 (to risk-weighted assets)
Common Equity Tier One Capital	$ 840,126,000	$ 334,385,000
Common Equity Tier One Capital Ratio (as a percent)	12.00%	11.01%
Common Equity Tier One Capital Required for Capital Adequacy	$ 315,047,000	$ 136,670,000
For Capital Adequacy Purposes Amount (as a percent)	4.50%	4.50%
Common Equity Tier One Capital Required to be Well-Capitalized	$ 455,068,000	$ 197,412,000
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	6.50%	6.50%
Tier 1 capital (to average assets)
Actual Amount	$ 840,126,000	$ 334,385,000
Actual Ratio (as a percent)	11.07%	10.87%
For Capital Adequacy Purposes Amount	$ 303,569,000	$ 123,049,000
For Capital Adequacy Purposes Ratio (as a percent)	4.00%	4.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 379,461,000	$ 153,811,000
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	5.00%	5.00%
Payments of dividends	$ 26,796,000	$ 0
Dividends paid (in dollars per share)	$ 0.125

Leases - Maturity (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Leases [Abstract]
Within one year	$ 3,465
After one but within two years	3,063
After two but within three years	2,589
After three but within four years	2,388
After four but within five years	1,937
After five years	2,146
Total undiscounted cash flows	15,588
Less: Discount on cash flows	(1,493)
Operating lease liability	$ 14,095

Stock and Incentive Plans (Tables)

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Summary of option activity

A summary of the status of options granted under the 2010 Incentive Plan at December 31, 2019, 2018 and 2017 and changes during the years then ended is presented below:


	2010 Incentive Plan
	Nonperformance-based stock options
	Shares Underlying Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at December 31, 2016	325,500	$	10.15	4.56 years

Forfeited	(3,000)	$	10.00

Exercised	(17,500)	$	10.00		$	308
Outstanding at December 31, 2017	305,000	$	10.16	3.59 years



Exercised	(30,000)	10.61			$	323
Outstanding at December 31, 2018	275,000	$	10.12	2.39 years



Exercised	(17,500)	10.24			275
Outstanding at December 31, 2019	257,500	$	10.28	1.37 years	$	4,971
Options exercisable at December 31, 2019	257,500	$	10.28	1.37 years	$	4,971

A summary of the status of the Company’s stock options under the 2014 Omnibus Plan as of December 31, 2019, 2018 and 2017, and changes during the years then ended, is as follows:


	2014 Omnibus Plan
	Nonperformance-based stock options
	Equity Awards										Liability Awards
	Shares Underlying Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value		Shares Underlying Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at December 31, 2016	128,366	$	15.32	8.69 years			—	—		—
Granted	212,983	26.97					—	—
Forfeited	(9,082)	19.45					—	—

Exercised	(1,544)	15.00					—	—
Outstanding at December 31, 2017	330,723	$	22.71	8.86 years			—	—		—
Granted	137,576	28.04					—	—
Forfeited	(4,083)	$	27.59				—	—

Exercised	(14,696)	15.29					—	—
Outstanding at December 31, 2018	449,520	$	24.47	8.24 years			—	$	—	—
Granted	200,561	22.72					253,633	21.38
Conversion to equity awards	253,633	21.38					(253,633)	21.38
Forfeited	(41,336)	25.51					—	—

Exercised	(12,610)	15.42			$	—	—	—			$	—
Outstanding at December 31, 2019	849,768	$	23.61	8.24 years	$	4,687	—	—		—	$	—
Options exercisable at December 31, 2019	414,338	$	24.60	7.31 years	$	1,877	—	—		—	$	—
Weighted average fair value of options granted during the period		$	22.72					$	21.38

A summary of the status of the Company’s stock options under the Veritex (Green) 2014 Plan as of December 31, 2019 and changes during the year then ended is as follows:


	Veritex (Green) 2014 Plan
	Non-performance Based Stock Options
	Shares Underlying Options	Weighted Exercise Price		Weighted Average Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1, 2019	—	$	—
Converted in acquisition of Green	304,778	15.41
Granted	211,793	21.38
Forfeited	(12,673)	13.17
Exercised	(116,929)	13.60
Outstanding at December 31, 2019	386,969	$	19.30	7.86 years	$3,800
Options exercisable at December 31, 2019	176,999	16.84		6.71 years	$2,175
Options exercisable at Weighted average fair value of options granted during the period		$	18.56

Summary of status of the Company's restricted shares or restricted stock units

A summary of the status of the restricted stock units under the 2010 Incentive Plan as of December 31, 2019, 2018, and 2017 and changes during the years is presented below:


	2010 Incentive Plan
	Nonperformance-based restricted stock units
	Shares Underlying Options	Weighted Average Exercise Price
Outstanding at December 31, 2016	27,750	$	11.92

Forfeited	(2,500)	10.85
Vested into shares	(1,000)	10.85
Outstanding at December 31, 2017	24,250	$	13.19

Forfeited	(500)	10.85
Vested into shares	(23,750)	12.14
Outstanding at December 31, 2018	—	$	—



Outstanding at December 31, 2019	—	$	—

A summary of the status of the Company’s non-performance based restricted stock units under the 2014 Omnibus Plan as of December 31, 2019, 2018 and 2017, and changes during the year then ended is as follows:


	2014 Omnibus Plan
	Nonperformance-based restricted stock units
	Equity Awards				Liability Awards
	Units	Weighted Average Grant Date Fair Value		Units	Weighted Average Grant Date Fair Value
Outstanding at December 31, 2016	67,956	$	13.79	—	$	—
Granted	121,125	27.19		—	—
Vested into shares	(34,342)	19.74		—	—
Forfeited	(4,017)	21.36		—	—
Outstanding at December 31, 2017	150,722	$	13.29	—	$	—
Granted	60,650	29.27		—	—
Vested into shares	(73,988)	24.44		—	—
Forfeited	(3,929)	26.29		—	—
Outstanding at December 31, 2018	133,455	$	19.67	—	$	—
Granted	127,459	22.44		165,739	21.38
Conversion to equity awards	165,739	21.38		(165,739)	21.38
Vested into shares	(250,965)	22.29		—	—

Outstanding at December 31, 2019	175,688	$	21.65	—	$	—

A summary of the status of the Company’s performance based restricted stock units under the 2014 Omnibus Plan as of December 31, 2019, 2018 and 2017, and changes during the years then ended is as follows:


	2014 Omnibus Plan
	Performance-based restricted stock units
	Equity Awards				Liability Awards
	Units	Weighted Average Grant Date Fair Value		Units	Weighted Average Grant Date Fair Value
Outstanding at December 31, 2016	51,197	$	13.30
Granted	26,398	24.43
Vested into shares	(19,861)	15.34
Forfeited	(4,140)	17.91
Outstanding at December 31, 2017	53,594	$	17.68
Granted	40,269	27.59
Vested into shares	(28,109)	18.69
Forfeited	(1,766)	27.59
Outstanding at December 31, 2018	63,988	$	21.28	—	$	—
Granted	38,746	22.53		32,249	21.38
Conversion to equity awards	32,249	21.38		(32,249)	21.38
Vested into shares	(51,284)	25.31		—	—
Forfeited	(19,972)	21.38		—	—
Outstanding at December 31, 2019	63,727	$	22.76	—	$	—

A summary of the status of the Company’s non-performance-based restricted stock units under the Veritex (Green) 2014 Plan as of December 31, 2019 and changes during the year then ended, is as follows:


	Veritex (Green) 2014 Plan
	Non-performance Based Restricted Stock Units
	Units	Weighted Average Grant Date Fair Value
Outstanding at January 1, 2019	—	$	—
Granted	116,250	21.38


Outstanding at December 31, 2019	116,250	$	21.38

A summary of the status of the Company’s performance-based restricted stock units under the Veritex (Green) 2014 Plan as of December 31, 2019 and changes during the year then ended, is as follows:


	Veritex (Green) 2014 Plan
	Performance Based Restricted Stock Units
	Units	Weighted Average Grant Date Fair Value
Outstanding at January 1, 2019	—	$	—
Granted	26,145	21.38

Forfeited	(825)	21.38
Outstanding at December 31, 2019	25,320	$	21.38

Schedule of employee stock purchase plan activity

A summary of the fair value of the Company’s stock options exercised and restricted stock units vested under the 2010 Incentive Plan as of December 31, 2019, 2018 and 2017 is presented below:


	Fair Value of Options Exercised or Restricted Stock Units Vested as of December 31,
	2019	2018	2017
Nonperformance-based stock options exercised	454	803	488
Nonperformance-based restricted stock units vested	—	713	26

A summary of the fair value of the Company’s stock options exercised and restricted stock units vested under the 2014 Omnibus Plan as of December 31, 2019, 2018 and 2017 is presented below:


	Fair Value of Options Exercised or Restricted Stock Units Vested as of December 31,
	2019	2018	2017
Nonperformance-based stock options exercised	334	383	41
Nonperformance-based restricted stock units vested	6,113	2,128	568
Performance-based restricted stock units vested	1,089	745	530

A summary of the fair value of the Company’s stock options exercised and restricted stock units vested under the Veritex (Green) 2014 Plan during the year ended December 31, 2019 is presented below:


	Fair Value of Options Exercised or Restricted Stock Units Vested in the year ended December 31,
	2019
Non-performance-based stock options exercised	$	3,054

Schedule of Vesting Percentages

Below is a table showing the range of vesting percentages for the performance-based restricted stock units based on the Company’s TSR percentile rank.


	Vesting %
Below the 24.9^th percentile of Peer Group TSR	—	%
Within the 25^th to 49.9^th percentile of Peer Group TSR	50	%
Within the 50^thto 74.9^th percentile of Peer Group TSR	100	%
At or above the 75^th percentile of Peer Group TSR	150	%

Schedule of assumptions used to measure fair value of each option award estimated on grant date using Black-Scholes option-pricing model

The fair value of each option award is estimated on the grant date using the Black-Scholes option-pricing model with the following assumptions used for the grants:

For the Year Ended December 31,

2019

2018

2017

Dividend yield

1.73% to 2.01%

—

Expected life

4.52 to 7.51 years

5.0 to 7.5 years

6.13 to 7.5 years

Expected volatility

28.85% to 29.65%

27.87% to 37.55%

30.56% to 33.19%

Risk-free interest rate

1.53% to 2.51%

1.06% to 2.94%

1.96% to 2.32%

Deposits (Tables)

12 Months Ended

Dec. 31, 2019

Schedule Summarized of the Deposits

Deposits in the accompanying consolidated balance sheets are summarized as follows:


	December 31,
	2019		2018
Noninterest-bearing demand accounts	$	1,556,500	$	626,283
Interest-bearing demand accounts	388,877		146,969
Savings accounts	86,079		33,147
Limited access money market accounts	2,180,016		1,133,045
Certificates of deposit, greater than $100	1,234,324		392,935
Certificates of deposit, less than $100	448,554		290,049
Total	$	5,894,350	$	2,622,428

Scheduled Maturities of Certificate of Deposits

As of December 31, 2019, the scheduled maturities of certificates of deposit were as follows:


Year	Amount
2020	$	1,321,767
2021	288,902
2022	41,955
2023	16,558
2024	13,696

Total	$	1,682,878

Summary of Significant Accounting Policies - Segment Reporting (Details)	12 Months Ended
	Dec. 31, 2019 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments	1

Supplemental Statement of Cash Flows (Details) - USD ($) $ in Thousands		12 Months Ended
	Jan. 01, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest		$ 88,175	$ 29,178	$ 10,680
Cash paid for income taxes		24,100	6,525	9,761
Supplemental Disclosures of Non-Cash Flow Information:
Setup of ROU asset and lease liability upon adoption of ASC 842		9,380
Reclassification of deferred offering costs paid in 2018 from other assets to additional paid-in-capital		788
Subordinated debt issuance costs accrued but not yet paid in 2019		315	0	0
Reclassification of lease intangibles, cease-use liability and deferred rent liability to ROU asset upon adoption of ASC 842		(48)	0	0
Net issuance of common stock for vesting of restricted stock units		1,349	595	312
Net foreclosure of other real estate owned and repossessed assets		5,995	8	1,037
Reclassification of branch assets held for sale to loans held for investment		26,171	0	33,552
Reclassification of branch liabilities held for sale to interest-bearing transaction and savings deposits		1,713	0	64,627
Noncash assets acquired
Investment securities		660,792	0	220,444
Equity securities		12,322	0	0
Other investments		29,490	0	8,847
Loans held for sale		9,360	0	0
Loans held for investment		3,245,248	(4,050)	1,060,436
Accrued interest receivable2		11,395	0	4,293
Bank-owned life insurance		56,841	0	0
Bank premises, furniture and equipment		36,855	1,162	24,424
Investments in trusts		666	0	0
Other real estate owned		0	0	448
Intangible assets, net		65,718	(956)	16,722
Goodwill		209,393	1,995	134,797
Other assets		11,124	1,806	484,097
Right of use asset2		9,373
Deferred taxes2		11,783	0	0
Current taxes2		1,812	0	0
Assets held for sale		85,307	0	0
Total assets		4,457,479	(43)	1,954,508
Noncash liabilities assumed
Non-interest-bearing deposits		825,364	303	333,912
Interest-bearing deposits		1,300,825	0	512,750
Certificates and other time deposits		1,346,915	0	358,555
Accounts payable and accrued expenses		26,491	0	7,571
Lease liability4		9,373
Accrued interest payable		5,181	(260)	948
Securities sold under agreements to repurchase		3,226	0	0
Advances from Federal Home Loan Bank		300,000	0	84,625
Subordinated debentures and subordinated notes		56,233	0	8,609
Liabilities held for sale		52,682	0	0
Total liabilities		3,926,290	43	1,306,970
Equity				49,000
Accounts payable and accrued expenses				185
Sovereign Bancshares, Inc.
Noncash liabilities assumed
Market value of common stock issued		0	0	$ 136,385
Shares of common stock exchanged in connection with acquisition (in shares)				5,117,642
Liberty Bancshares, Inc.
Noncash liabilities assumed
Market value of common stock issued		$ 0	0	$ 40,337
Shares of common stock exchanged in connection with acquisition (in shares)		29,532,957		1,449,944
Green Bancorp, Inc.
Noncash liabilities assumed
Market value of common stock issued	$ 631,415	$ 631,415	0	$ 0
Shares of common stock exchanged in connection with acquisition (in shares)	29,532,957
Preferred Stock
Noncash liabilities assumed
Equity		0	0	24,500
Restricted stock units \| Green Bancorp, Inc.
Noncash liabilities assumed
Market value of common stock issued		$ 5,801	$ 0	$ 0
Shares of common stock exchanged in connection with acquisition (in shares)		497,594

Advances from the Federal Home Loan Bank ("FHLB") - Contractual Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Banking and Thrift [Abstract]
2020	$ 75,000
2021	25,000
2022	27,870
2023	0
2024	200,000
Thereafter	350,000
Total	$ 677,870	$ 28,019

Summary of Quarterly Financial Statements (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]
Interest Income	$ 91,742	$ 95,643	$ 96,177	$ 95,224	$ 38,182	$ 37,920	$ 34,857	$ 34,110	$ 378,786	$ 145,069	$ 79,552
Interest Expense	21,878	24,769	24,735	22,307	9,487	8,642	6,931	4,985	93,689	30,045	11,044
Net interest income	69,864	70,874	71,442	72,917	28,695	29,278	27,926	29,125	285,097	115,024	68,508
Provision for loan losses	3,493	9,674	3,335	5,012	1,364	3,057	1,504	678	21,514	6,603	5,114
Noninterest income	7,132	8,430	6,034	8,484	3,619	2,408	2,290	2,758	30,080	11,075	7,576
Noninterest expense	36,284	34,630	39,896	66,993	17,538	18,246	16,169	17,306	177,803	69,259	42,789
Income tax expense	8,168	7,595	7,369	1,989	3,587	1,448	2,350	3,511	25,121	10,896	13,029
Net income allocated to common stockholders	$ 29,051	$ 27,405	$ 26,876	$ 7,407	$ 9,825	$ 8,935	$ 10,193	$ 10,388	$ 90,739	$ 39,341	$ 15,110
Basic (in USD per share)	$ 0.56	$ 0.52	$ 0.50	$ 0.14	$ 0.41	$ 0.37	$ 0.42	$ 0.43	$ 1.71	$ 1.63	$ 0.82
Diluted (in USD per share)	$ 0.56	$ 0.51	$ 0.49	$ 0.13	$ 0.40	$ 0.36	$ 0.42	$ 0.42	$ 1.68	$ 1.60	$ 0.80

Goodwill

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Changes in the carrying amount of goodwill in the accompanying consolidated balance sheets are summarized as follows:


	December 31,
	2019		2018
Balance at beginning of year	$	161,447	$	159,452
Sovereign acquisition	—		2,210
Liberty acquisition	—		(215)
Green acquisition	209,393		—

Balance at end of year	$	370,840	$	161,447

Loans and Allowance for Loan Losses - Past Due (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Non-Accrual and Past Due Loans
Total Past Due	$ 18,571	$ 5,821
Total current	5,779,858	2,508,858
Loans	5,921,071	2,555,509
Total 90 Days Past Due and Still Accruing	3,660	0
30 to 59 Days Past Due
Non-Accrual and Past Due Loans
Total Past Due	6,209	4,727
60 to 89 Days Past Due
Non-Accrual and Past Due Loans
Total Past Due	8,702	1,094
90 Days or Greater
Non-Accrual and Past Due Loans
Total Past Due	3,660	0
Real Estate \| Construction and land
Non-Accrual and Past Due Loans
Total Past Due	0	305
Total current	629,374	324,558
Loans	629,374	324,863
Total 90 Days Past Due and Still Accruing	800	0
Real Estate \| Construction and land \| 30 to 59 Days Past Due
Non-Accrual and Past Due Loans
Total Past Due	0	305
Real Estate \| Construction and land \| 60 to 89 Days Past Due
Non-Accrual and Past Due Loans
Total Past Due	0	0
Real Estate \| Construction and land \| 90 Days or Greater
Non-Accrual and Past Due Loans
Total Past Due	0	0
Real Estate \| Farmland
Non-Accrual and Past Due Loans
Total Past Due	0	0
Total current	16,939	10,528
Loans	16,939	10,528
Total 90 Days Past Due and Still Accruing	0	0
Real Estate \| Farmland \| 30 to 59 Days Past Due
Non-Accrual and Past Due Loans
Total Past Due	0	0
Real Estate \| Farmland \| 60 to 89 Days Past Due
Non-Accrual and Past Due Loans
Total Past Due	0	0
Real Estate \| Farmland \| 90 Days or Greater
Non-Accrual and Past Due Loans
Total Past Due	0	0
Real Estate \| Real estate
Non-Accrual and Past Due Loans
Loans	869,852	349,202
Real Estate \| Commercial Real Estate
Non-Accrual and Past Due Loans
Total Past Due	4,714	3,465
Total current	2,389,415	1,082,559
Loans	2,490,983	1,103,032
Total 90 Days Past Due and Still Accruing	511	0
Real Estate \| Commercial Real Estate \| 30 to 59 Days Past Due
Non-Accrual and Past Due Loans
Total Past Due	12	3,465
Real Estate \| Commercial Real Estate \| 60 to 89 Days Past Due
Non-Accrual and Past Due Loans
Total Past Due	3,834	0
Real Estate \| Commercial Real Estate \| 90 Days or Greater
Non-Accrual and Past Due Loans
Total Past Due	868	0
Real Estate \| 1 - 4 family residential \| Real estate
Non-Accrual and Past Due Loans
Total Past Due	4,270	397
Total current	541,772	297,435
Loans	549,811	297,917
Total 90 Days Past Due and Still Accruing	959	0
Real Estate \| 1 - 4 family residential \| Real estate \| 30 to 59 Days Past Due
Non-Accrual and Past Due Loans
Total Past Due	2,595	131
Real Estate \| 1 - 4 family residential \| Real estate \| 60 to 89 Days Past Due
Non-Accrual and Past Due Loans
Total Past Due	520	266
Real Estate \| 1 - 4 family residential \| Real estate \| 90 Days or Greater
Non-Accrual and Past Due Loans
Total Past Due	1,155	0
Real Estate \| Multi-family residential \| Real estate
Non-Accrual and Past Due Loans
Total Past Due	0	0
Total current	320,041	51,285
Loans	320,041	51,285
Total 90 Days Past Due and Still Accruing	0	0
Real Estate \| Multi-family residential \| Real estate \| 30 to 59 Days Past Due
Non-Accrual and Past Due Loans
Total Past Due	0	0
Real Estate \| Multi-family residential \| Real estate \| 60 to 89 Days Past Due
Non-Accrual and Past Due Loans
Total Past Due	0	0
Real Estate \| Multi-family residential \| Real estate \| 90 Days or Greater
Non-Accrual and Past Due Loans
Total Past Due	0	0
Commercial
Non-Accrual and Past Due Loans
Total Past Due	6,776	1,644
Total current	1,684,043	735,391
Loans	1,712,838	760,772
Total 90 Days Past Due and Still Accruing	1,317	0
Commercial \| 30 to 59 Days Past Due
Non-Accrual and Past Due Loans
Total Past Due	3,572	816
Commercial \| 60 to 89 Days Past Due
Non-Accrual and Past Due Loans
Total Past Due	1,707	828
Commercial \| 90 Days or Greater
Non-Accrual and Past Due Loans
Total Past Due	1,497	0
Mortgage warehouse
Non-Accrual and Past Due Loans
Total Past Due	0
Total current	183,628
Loans	183,628	0
Total 90 Days Past Due and Still Accruing	0
Mortgage warehouse \| 30 to 59 Days Past Due
Non-Accrual and Past Due Loans
Total Past Due	0
Mortgage warehouse \| 60 to 89 Days Past Due
Non-Accrual and Past Due Loans
Total Past Due	0
Mortgage warehouse \| 90 Days or Greater
Non-Accrual and Past Due Loans
Total Past Due	0
Consumer
Non-Accrual and Past Due Loans
Total Past Due	2,811	10
Total current	14,646	7,102
Loans	17,457	7,112
Total 90 Days Past Due and Still Accruing	73	0
Consumer \| 30 to 59 Days Past Due
Non-Accrual and Past Due Loans
Total Past Due	30	10
Consumer \| 60 to 89 Days Past Due
Non-Accrual and Past Due Loans
Total Past Due	2,641	0
Consumer \| 90 Days or Greater
Non-Accrual and Past Due Loans
Total Past Due	140	0
Financial Asset Acquired with Credit Deterioration
Non-Accrual and Past Due Loans
Loans	126,718	40,830
Financial Asset Acquired with Credit Deterioration \| 90 Days or Greater
Non-Accrual and Past Due Loans
Total 90 Days Past Due and Still Accruing	41,328	527
Financial Asset Acquired with Credit Deterioration \| Real Estate \| Construction and land
Non-Accrual and Past Due Loans
Loans	3,947	0
Financial Asset Acquired with Credit Deterioration \| Real Estate \| Farmland
Non-Accrual and Past Due Loans
Loans	0	0
Financial Asset Acquired with Credit Deterioration \| Real Estate \| Commercial Real Estate
Non-Accrual and Past Due Loans
Loans	96,854	17,008
Financial Asset Acquired with Credit Deterioration \| Real Estate \| 1 - 4 family residential \| Real estate
Non-Accrual and Past Due Loans
Loans	3,769	85
Financial Asset Acquired with Credit Deterioration \| Real Estate \| Multi-family residential \| Real estate
Non-Accrual and Past Due Loans
Loans	0	0
Financial Asset Acquired with Credit Deterioration \| Commercial
Non-Accrual and Past Due Loans
Loans	22,019	23,737
Financial Asset Acquired with Credit Deterioration \| Mortgage warehouse
Non-Accrual and Past Due Loans
Loans	0
Financial Asset Acquired with Credit Deterioration \| Consumer
Non-Accrual and Past Due Loans
Loans	$ 129	$ 0

Fair Value Disclosures - Non-recurring Basis (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Assets:
Impaired loans, specific allowance	$ 1,602,000	$ 368,000
Non-recurring
Assets:
Impaired loans	4,504,000	2,584,000
Other real estate owned	5,995,000
Impaired loans, specific allowance	1,602,000	368,000
Liabilities measured at fair value	0	0
Non-recurring \| Level 1
Assets:
Impaired loans	0	0
Other real estate owned	0
Non-recurring \| Level 2
Assets:
Impaired loans	0	0
Other real estate owned	0
Non-recurring \| Level 3
Assets:
Impaired loans	4,504,000	$ 2,584,000
Other real estate owned	$ 5,995,000

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Provisional income tax expense (benefit)		$ 3,051
TCJA, measurement period adjustment, income tax expense (benefit)	$ 34
Current tax receivable	4,982		$ 10,403
Deferred tax asset	$ 4,150		1,433
Taxes payable, current			780
Operating loss carryforwards			$ 3,400

Stock and Incentive Plans - 2010 Plan - Options (Details) - Nonperformance-based stock options - 2010 Stock Option and Equity Incentive Plan - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Shares Underlying Options
Outstanding at beginning of period (in shares)	275,000	305,000	325,500
Forfeited (in shares)			(3,000)
Exercised (in shares)	(17,500)	(30,000)	(17,500)
Outstanding at the end of period (in shares)	257,500	275,000	305,000	325,500
Options exercisable at end of period (in shares)	257,500
Weighted Average Exercise Price
Outstanding at beginning of period (in dollars per share)	$ 10.12	$ 10.16	$ 10.15
Forfeited (in dollars per share)			10.00
Exercised (in dollars per share)	10.24	10.61	10.00
Outstanding at the end of period (in dollars per share)	10.28	$ 10.12	$ 10.16	$ 10.15
Options exercisable at end of period (in dollars per share)	$ 10.28
Weighted Average Remaining Contractual Term
Outstanding at beginning of year	1 year 4 months 13 days	2 years 4 months 20 days	3 years 7 months 2 days	4 years 6 months 21 days
Exercisable	1 year 4 months 13 days
Aggregate Intrinsic Value
Exercised	$ 275,000	$ 323,000	$ 308,000
Aggregate intrinsic value of outstanding stock options (in dollars)	4,971,000
Options exercisable, intrinsic value	4,971,000
Unrecognized compensation expense (in dollars)	$ 0	$ 3,000	$ 8,000

Business Combinations - Narrative (Details) - USD ($) $ in Thousands		12 Months Ended
	Jan. 01, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Business Acquisition [Line Items]
Goodwill		$ 370,840	$ 161,447	$ 159,452
Merger and acquisition expense		38,960	5,220	$ 2,691
Total investment securities available for sale, fair value		964,365	262,695
Debt securities, held to maturity		$ 32,965	$ 0
Core deposit intangibles
Business Acquisition [Line Items]
Weighted amortization period		7 years	7 years 8 months 12 days
Common Stock
Business Acquisition [Line Items]
Restricted stock units vested, net (in shares)		246,303	105,765	43,602
Exercise of employee stock options (in shares)		335,832	38,614	17,949
Green Bancorp, Inc.
Business Acquisition [Line Items]
Goodwill	$ 209,393
Share conversion rate (in shares)	0.79
Exercise of employee stock options (in shares)	1,085,256
Merger and acquisition expense		$ 38,960	$ 4,865
Premium on time deposits	$ 7,318
Amortization period	1 year 8 months 12 days
Total investment securities available for sale, fair value		634,449
Debt securities, held to maturity		$ 26,343
Green Bancorp, Inc. \| Subordinated Debt
Business Acquisition [Line Items]
Purchase premium	$ 3,134
Purchase discount	$ 4,066
Purchase premium, accretion period	2 years
Purchase discount, amortization period	17 years 6 months
Green Bancorp, Inc. \| Core deposit intangibles
Business Acquisition [Line Items]
Intangible assets	$ 65,718
Weighted amortization period	8 years
Green Bancorp, Inc. \| Common Stock
Business Acquisition [Line Items]
Restricted stock units vested, net (in shares)		497,594
Green Bancorp, Inc. \| Stock-Based Compensation
Business Acquisition [Line Items]
Merger and acquisition expense		$ 17,082
Green Bancorp, Inc. \| Severance Payments
Business Acquisition [Line Items]
Merger and acquisition expense		9,491
Green Bancorp, Inc. \| Legal And Professional Fees
Business Acquisition [Line Items]
Merger and acquisition expense		5,297
Green Bancorp, Inc. \| Data Processing
Business Acquisition [Line Items]
Merger and acquisition expense		$ 1,824

Advances from the Federal Home Loan Bank ("FHLB") (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Contractual Maturities of FHLB Advances

Contractual maturities of FHLB advances at December 31, 2019 were as follows:


2020	$	75,000
2021	25,000
2022	27,870
2023	—
2024	200,000
Thereafter	350,000
Total	$	677,870

Loans and Allowance for Loan Losses - Credit Quality Indicators (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Credit Quality Indicators
Loans	$ 5,921,071	$ 2,555,509
Pass
Credit Quality Indicators
Loans	5,640,781	2,473,185
Special Mention
Credit Quality Indicators
Loans	80,293	18,052
Substandard
Credit Quality Indicators
Loans	73,279	23,442
Doubtful
Credit Quality Indicators
Loans	0	0
PCI
Credit Quality Indicators
Loans	126,718	40,830
Real Estate \| Construction and land
Credit Quality Indicators
Loans	629,374	324,863
Real Estate \| Construction and land \| Pass
Credit Quality Indicators
Loans	618,773	320,987
Real Estate \| Construction and land \| Special Mention
Credit Quality Indicators
Loans	3,965	1,860
Real Estate \| Construction and land \| Substandard
Credit Quality Indicators
Loans	2,689	2,016
Real Estate \| Construction and land \| Doubtful
Credit Quality Indicators
Loans	0	0
Real Estate \| Construction and land \| PCI
Credit Quality Indicators
Loans	3,947	0
Real Estate \| Farmland
Credit Quality Indicators
Loans	16,939	10,528
Real Estate \| Farmland \| Pass
Credit Quality Indicators
Loans	16,939	10,528
Real Estate \| Farmland \| Special Mention
Credit Quality Indicators
Loans	0	0
Real Estate \| Farmland \| Substandard
Credit Quality Indicators
Loans	0	0
Real Estate \| Farmland \| Doubtful
Credit Quality Indicators
Loans	0	0
Real Estate \| Farmland \| PCI
Credit Quality Indicators
Loans	0	0
Real Estate \| Real estate
Credit Quality Indicators
Loans	869,852	349,202
Real Estate \| Commercial Real Estate
Credit Quality Indicators
Loans	2,490,983	1,103,032
Real Estate \| Commercial Real Estate \| Pass
Credit Quality Indicators
Loans	2,332,357	1,065,982
Real Estate \| Commercial Real Estate \| Special Mention
Credit Quality Indicators
Loans	23,494	7,056
Real Estate \| Commercial Real Estate \| Substandard
Credit Quality Indicators
Loans	38,278	12,986
Real Estate \| Commercial Real Estate \| Doubtful
Credit Quality Indicators
Loans	0	0
Real Estate \| Commercial Real Estate \| PCI
Credit Quality Indicators
Loans	96,854	17,008
Commercial
Credit Quality Indicators
Loans	1,712,838	760,772
Commercial \| Pass
Credit Quality Indicators
Loans	1,610,150	720,583
Commercial \| Special Mention
Credit Quality Indicators
Loans	51,999	8,900
Commercial \| Substandard
Credit Quality Indicators
Loans	28,670	7,552
Commercial \| Doubtful
Credit Quality Indicators
Loans	0	0
Commercial \| PCI
Credit Quality Indicators
Loans	22,019	23,737
Mortgage warehouse
Credit Quality Indicators
Loans	183,628	0
Mortgage warehouse \| Pass
Credit Quality Indicators
Loans	183,628
Mortgage warehouse \| Special Mention
Credit Quality Indicators
Loans	0
Mortgage warehouse \| Substandard
Credit Quality Indicators
Loans	0
Mortgage warehouse \| Doubtful
Credit Quality Indicators
Loans	0
Mortgage warehouse \| PCI
Credit Quality Indicators
Loans	0
Consumer
Credit Quality Indicators
Loans	17,457	7,112
Consumer \| Pass
Credit Quality Indicators
Loans	17,106	6,950
Consumer \| Special Mention
Credit Quality Indicators
Loans	40	0
Consumer \| Substandard
Credit Quality Indicators
Loans	182	162
Consumer \| Doubtful
Credit Quality Indicators
Loans	0	0
Consumer \| PCI
Credit Quality Indicators
Loans	129	0
1 - 4 family residential \| Real Estate \| Real estate
Credit Quality Indicators
Loans	549,811	297,917
1 - 4 family residential \| Real Estate \| Real estate \| Pass
Credit Quality Indicators
Loans	541,787	296,870
1 - 4 family residential \| Real Estate \| Real estate \| Special Mention
Credit Quality Indicators
Loans	795	236
1 - 4 family residential \| Real Estate \| Real estate \| Substandard
Credit Quality Indicators
Loans	3,460	726
1 - 4 family residential \| Real Estate \| Real estate \| Doubtful
Credit Quality Indicators
Loans	0	0
1 - 4 family residential \| Real Estate \| Real estate \| PCI
Credit Quality Indicators
Loans	3,769	85
Multi-family residential \| Real Estate \| Real estate
Credit Quality Indicators
Loans	320,041	51,285
Multi-family residential \| Real Estate \| Real estate \| Pass
Credit Quality Indicators
Loans	320,041	51,285
Multi-family residential \| Real Estate \| Real estate \| Special Mention
Credit Quality Indicators
Loans	0	0
Multi-family residential \| Real Estate \| Real estate \| Substandard
Credit Quality Indicators
Loans	0	0
Multi-family residential \| Real Estate \| Real estate \| Doubtful
Credit Quality Indicators
Loans	0	0
Multi-family residential \| Real Estate \| Real estate \| PCI
Credit Quality Indicators
Loans	$ 0	$ 0

Stock and Incentive Plans - Omnibus Plan - Options (Details) - Omnibus Plan - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Nonperformance-based stock options
Shares Underlying Options
Outstanding at beginning of period (in shares)	449,520	330,723	128,366
Granted during the period (in shares)	200,561	137,576	212,983
Conversion to equity awards (in shares)	253,633
Forfeited (in shares)	(41,336)	(4,083)	(9,082)
Exercised (in shares)	(12,610)	(14,696)	(1,544)
Outstanding at the end of period (in shares)	849,768	449,520	330,723	128,366
Options exercisable at end of period (in shares)	414,338
Weighted Average Exercise Price
Outstanding at beginning of period (in dollars per share)	$ 24.47	$ 22.71	$ 15.32
Granted during the period (in dollars per share)	22.72	28.04	26.97
Conversion to equity awards (in dollars per share)	21.38
Forfeited (in dollars per share)	25.51	27.59	19.45
Exercised (in dollars per share)	15.42	15.29	15.00
Outstanding at the end of period (in dollars per share)	23.61	$ 24.47	$ 22.71	$ 15.32
Options exercisable at end of period (in dollars per share)	24.60
Weighted average fair value of options granted during the period (in dollars per share)	$ 22.72
Weighted Average Remaining Contractual Term
Outstanding at beginning of year	8 years 2 months 26 days	8 years 2 months 26 days	8 years 10 months 9 days	8 years 8 months 8 days
Exercisable	7 years 3 months 21 days
Aggregate Intrinsic Value
Aggregate intrinsic value of outstanding stock options (in dollars)	$ 4,687,000
Options exercisable, intrinsic value	$ 1,877,000
Liability Non Performance Based Stock Options
Shares Underlying Options
Outstanding at beginning of period (in shares)	0	0	0
Granted during the period (in shares)	253,633	0	0
Conversion to equity awards (in shares)	(253,633)
Forfeited (in shares)	0	0	0
Exercised (in shares)	0	0	0
Outstanding at the end of period (in shares)	0	0	0	0
Options exercisable at end of period (in shares)	0
Weighted Average Exercise Price
Outstanding at beginning of period (in dollars per share)	$ 0	$ 0	$ 0
Granted during the period (in dollars per share)	21.38	0	0
Conversion to equity awards (in dollars per share)	21.38
Forfeited (in dollars per share)	0	0	0
Exercised (in dollars per share)	0	0	0
Outstanding at the end of period (in dollars per share)	0	$ 0	$ 0	$ 0
Options exercisable at end of period (in dollars per share)	0
Weighted average fair value of options granted during the period (in dollars per share)	$ 21.38
Weighted Average Remaining Contractual Term
Outstanding at beginning of year	0 years
Exercisable	0 years
Aggregate Intrinsic Value
Aggregate intrinsic value of outstanding stock options (in dollars)	$ 0
Options exercisable, intrinsic value	0
Unrecognized compensation expense (in dollars)	0
Stock option
Aggregate Intrinsic Value
Unrecognized compensation expense (in dollars)	$ 2,948,000	$ 2,103,000	$ 1,958,000
Requisite service period to recognize compensation cost	2 years 1 month 20 days

Leases (Details) $ in Thousands	12 Months Ended
Leases (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Lessee, Lease, Description [Line Items]
Operating lease, right-of-use asset	$ 13,205
Lease liability	14,095
Lease, Cost [Abstract]
Operating lease cost	4,999
Variable lease cost	988
Net lease cost	5,987
Operating cash flows from operating leases	$ 4,325
Weighted-average remaining lease term - operating leases, in years	4 years 4 months 24 days
Weighted-average discount rate - operating leases	1.59%
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term	1 year
Extension options	5 years
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term	8 years
Extension options	10 years

Securities

12 Months Ended

Dec. 31, 2019

Investments, Debt and Equity Securities [Abstract]

Securities

Equity Securities With a Readily Determinable Fair Value

The Company held equity securities with a fair value of $11,122 at December 31, 2019. The Company did not hold equity securities with a readily determinable fair value at December 31, 2018. The Company had no realized gains or losses on equity securities with a readily determinable fair value during the years ended December 31, 2019 and 2018. The gross unrealized gain recognized on equity securities with readily determinable fair values recorded in other noninterest income in the Company’s consolidated statements of income were as follows:


	2019		2018
Unrealized gain recognized on equity securities with a readily determinable fair value	$	325	$	—

Equity Securities Without a Readily Determinable Fair Value

The Company held equity securities without a readily determinable fair values and measured at cost of $3,575 and $2,050 at December 31, 2019 and 2018, respectively.

Investment Securities

Investment securities have been classified in the consolidated balance sheets according to management’s intent. The amortized cost, related gross unrealized gains and losses, and the fair value of available for sale and held to maturity securities are as follows:


	December 31, 2019
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
Available for Sale

Corporate bonds	$	76,997	$	1,974	$	—	$	78,971
Municipal securities	74,956		3,724		—		78,680
Mortgage-backed securities	288,938		9,512		260		298,190
Collateralized mortgage obligations	431,276		6,465		1,503		436,238
Asset-backed securities	69,964		2,322		—		72,286
	$	942,131	$	23,997	$	1,763	$	964,365

Held to maturity
Mortgage-backed securities	$	8,621	$	452	$	—	$	9,073
Collateralized mortgage obligations	1,809		43		—		1,852
Municipal securities	22,535		1,350		—		23,885
	$	32,965	$	1,845	$	—	$	34,810


	December 31, 2018
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
Available for Sale
U.S. government agencies	$	9,096	$	—	$	118	$	8,978
Corporate bonds	26,518		84		134		26,468
Municipal securities	40,275		10		338		39,947
Mortgage-backed securities	97,117		101		2,167		95,051
Collateralized mortgage obligations	92,906		197		1,344		91,759
Asset-backed securities	492		—		—		492
	$	266,404	$	392	$	4,101	$	262,695

The Company reassessed the classification of certain investments and, effective January 1, 2019, the Company transferred $4,758 of municipal securities and $3,045 of mortgage-backed securities from available for sale to held to maturity at fair value. The related unrealized gain was minimal. No gain or loss was recorded at the time of the transfer.

The following tables disclose the Company’s available for sale securities that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 or more months:


	December 31, 2019
	Less Than 12 Months						12 Months or More						Totals
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Loss		Value		Loss		Value		Loss
Available for Sale


Municipal securities	$	468	$	1	$	—	$	—	$	468	$	1
Mortgage-backed securities	28,883		370		—		—		28,883		370
Collateralized mortgage obligations	109,749		1,392		—		—		109,749		1,392

	$	139,100	$	1,763	$	—	$	—	$	139,100	$	1,763


	December 31, 2018
	Less Than 12 Months						12 Months or More						Totals
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Loss		Value		Loss		Value		Loss
Available for Sale
U.S. government agencies	$	5,671	$	68	$	3,306	$	50	$	8,977	$	118
Corporate bonds	6,689		134		—		—		6,689		134
Municipal securities	16,043		92		10,428		246		26,471		338
Mortgage-backed securities	24,277		279		59,637		1,888		83,914		2,167
Collateralized mortgage obligations	18,765		71		42,536		1,273		61,301		1,344

	$	71,445	$	644	$	115,907	$	3,457	$	187,352	$	4,101

The number of investment positions in an unrealized loss position totaled 11 and 142 at December 31, 2019 and December 31, 2018, respectively. The Company does not believe these unrealized losses are “other than temporary.” In estimating other than temporary impairment losses, management considers, among other things, the length of time and the extent to which the fair value has been less than cost and the Company’s financial condition and near-term prospects. Additionally, (i) the Company does not have the intent to sell investment securities prior to recovery and/or maturity, (ii) it is more likely than not that the Company will not have to sell these securities prior to recovery and/or maturity and (iii) the length of time and extent that fair value has been less than cost is not indicative of recoverability. The unrealized losses noted are interest rate-related due to the level of interest rates at December 31, 2019 compared to the rates at the time of purchase. The

Company has reviewed the ratings of the issuers and has not identified any issues related to the ultimate repayment of principal as a result of credit concerns regarding these securities. The Company from time to time may dispose of an impaired security in response to asset/liability management decisions, future market movements or business plan changes, or if the net proceeds can be reinvested at a rate of return that is expected to recover the loss within a reasonable period of time. The Company sold certain securities in January 2019 due to a one-time re-balancing activity and recorded an insignificant loss.

The amortized costs and estimated fair values of securities available for sale, by contractual maturity, as of the dates indicated, are shown in the tables below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Mortgage-backed securities, collateralized mortgage obligations, and asset-backed securities typically are issued with stated principal amounts, and the securities are backed by pools of mortgage loans and other loans that have varying maturities. The term of mortgage-backed, collateralized mortgage obligations and asset-backed securities thus approximates the term of the underlying mortgages and loans and can vary significantly due to prepayments. Therefore, these securities are not included in the maturity categories below.


	December 31, 2019
	Available For Sale						Held to Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value

Due from one year to five years	$	4,904	$	5,100	$	—	$	—
Due from five years to ten years	74,596		76,403		1,204		1,219
Due after ten years	72,453		76,148		21,331		22,666
	151,953		157,651		22,535		23,885
Mortgage-backed securities and collateralized mortgage obligations	720,214		734,428		10,430		10,925
Asset-backed securities	69,964		72,286		—		—
	$	942,131	$	964,365	$	32,965	$	34,810


	December 31, 2018
	Available For Sale
	Amortized		Fair
	Cost		Value
Due in one year or less	$	2,963	$	2,966
Due from one year to five years	34,933		34,854
Due from five years to ten years	19,682		19,468
Due after ten years	18,311		18,105
	75,889		75,393
Mortgage-backed securities and collateralized mortgage obligations	190,023		186,810
Asset-backed securities	492		492
	$	266,404	$	262,695

Proceeds from sales of investment securities available for sale and gross realized gains and losses for the years ended December 31, 2019, 2018 and 2017 were as follows:


	December 31,
	2019		2018		2017
Proceeds from sales	$	567,718	$	40,822	$	159,869
Gross realized gains	532		335		398
Gross realized losses	2,384		399		176

As further explained in Note 12, Advances from the Federal Home Loan Bank, there was a blanket floating lien on all securities to secure FHLB advances as of December 31, 2019 and December 31, 2018.

Loans and Allowance for Loan Losses - Allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Analysis of allowance for loan losses
Balance at beginning of year	$ 19,255	$ 12,808	$ 8,524
Provision charged to earnings	21,514	6,603	5,114
Charge-offs	(11,320)	(197)	(839)
Recoveries	385	41	9
Net charge-offs	(10,935)	(156)	(830)
Balance at end of year	29,834	19,255	12,808
Allowance for loan losses (as a percent)				0.50%	0.75%	0.57%
Period-end amount allocated to:
Total specific reserves				$ 1,602	$ 368	$ 12
PCI Reserves				593	1,302	0
General reserves				27,639	17,585	12,796
Total	19,255	12,808	8,524	29,834	19,255	12,808
Real Estate \| Construction Land and Farmland
Analysis of allowance for loan losses
Balance at beginning of year	2,244	1,315	1,415
Provision charged to earnings	1,639	929	(100)
Charge-offs	0	0	0
Recoveries	0	0	0
Net charge-offs	0	0	0
Balance at end of year	3,883	2,244	1,315
Period-end amount allocated to:
Total specific reserves				128	0	0
PCI Reserves				0	0	0
General reserves				3,755	2,244	1,315
Total	3,883	1,315	1,415	3,883	2,244	1,315
Real Estate \| Real estate
Analysis of allowance for loan losses
Balance at beginning of year	1,975	1,473	1,116
Provision charged to earnings	1,458	502	368
Charge-offs	(157)	0	(11)
Recoveries	67	0	0
Net charge-offs	(90)	0	(11)
Balance at end of year	3,343	1,975	1,473
Period-end amount allocated to:
Total specific reserves				37	0	0
PCI Reserves				0	0	0
General reserves				3,306	1,975	1,473
Total	3,343	1,473	1,116	3,343	1,975	1,473
Real Estate \| Commercial Real Estate
Analysis of allowance for loan losses
Balance at beginning of year	6,463	4,410	3,003
Provision charged to earnings	3,654	2,053	1,407
Charge-offs	0	0	0
Recoveries	0	0	0
Net charge-offs	0	0	0
Balance at end of year	10,117	6,463	4,410
Period-end amount allocated to:
Total specific reserves				395	0	0
PCI Reserves				20	0	0
General reserves				9,702	6,463	4,410
Total	10,117	4,410	3,003	10,117	6,463	4,410
Commercial
Analysis of allowance for loan losses
Balance at beginning of year	8,554	5,588	2,955
Provision charged to earnings	14,487	3,100	3,452
Charge-offs	(10,898)	(175)	(828)
Recoveries	226	41	9
Net charge-offs	(10,672)	(134)	(819)
Balance at end of year	12,369	8,554	5,588
Period-end amount allocated to:
Total specific reserves				1,042	368	12
PCI Reserves				573	1,302	0
General reserves				10,754	6,884	5,576
Total	12,369	5,588	2,955	12,369	8,554	5,588
Consumer
Analysis of allowance for loan losses
Balance at beginning of year	19	22	35
Provision charged to earnings	276	19	(13)
Charge-offs	(265)	(22)	0
Recoveries	92	0	0
Net charge-offs	(173)	(22)	0
Balance at end of year	122	19	22
Period-end amount allocated to:
Total specific reserves				0	0	0
PCI Reserves				0	0	0
General reserves				122	19	22
Total	$ 122	$ 22	$ 35	$ 122	$ 19	$ 22

Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Loans and Allowance for Loan Losses
Loans, gross	$ 5,921,071	$ 2,555,509
Deferred loan costs (fees)	134	(15)
Allowance for loan losses	(29,834)	(19,255)	$ (12,808)	$ (8,524)
Total loans held for investment, net	5,891,371	2,536,239
Contractual principal balance	57,811	22,309
Discount on retained loans from SBA loan sales	2,193	2,398
Real Estate \| Construction and land
Loans and Allowance for Loan Losses
Loans, gross	629,374	324,863
Real Estate \| Farmland
Loans and Allowance for Loan Losses
Loans, gross	16,939	10,528
Real Estate \| Real estate
Loans and Allowance for Loan Losses
Loans, gross	869,852	349,202
Allowance for loan losses	(3,343)	(1,975)	(1,473)	(1,116)
Real Estate \| Real estate \| 1 - 4 family residential
Loans and Allowance for Loan Losses
Loans, gross	549,811	297,917
Real Estate \| Real estate \| Multi-family residential
Loans and Allowance for Loan Losses
Loans, gross	320,041	51,285
Real Estate \| Commercial Real Estate
Loans and Allowance for Loan Losses
Loans, gross	2,490,983	1,103,032
Allowance for loan losses	(10,117)	(6,463)	(4,410)	(3,003)
Commercial
Loans and Allowance for Loan Losses
Loans, gross	1,712,838	760,772
Allowance for loan losses	(12,369)	(8,554)	(5,588)	(2,955)
Mortgage warehouse
Loans and Allowance for Loan Losses
Loans, gross	183,628	0
Consumer
Loans and Allowance for Loan Losses
Loans, gross	17,457	7,112
Allowance for loan losses	$ (122)	$ (19)	$ (22)	$ (35)

Other Credit Extensions	12 Months Ended
Other Credit Extensions	Dec. 31, 2019
Debt Disclosure [Abstract]
Other Credit Extensions	Other Credit Extensions As of December 31, 2019 the Company maintained three credit facilities with commercial banks that provided federal funds credit extensions with an availability to borrow up to an aggregate amount of $150,000. As of December 31, 2018, the Company maintained two credit facilities with commercial banks that provide federal funds credit extensions with an availability to borrow up to an aggregate amount of approximately $75,000. There were no borrowings under these credit facilities as of December 31, 2019 and 2018. As of December 31, 2019 and 2018, the Company maintained a secured line of credit with the FRB with an availability to borrow approximately $1,022,401 and $524,016, respectively. Approximately $843,861 and $404,981 of commercial loans were pledged as collateral at December 31, 2019 and 2018, respectively. There were no borrowings under this line of credit as of December 31, 2019 and 2018.

Parent Company Only Financial Statements - Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
ASSETS
Cash and cash equivalents	$ 251,550	$ 84,449
Other assets	67,994	28,410
Total assets	7,954,937	3,208,550
LIABILITIES AND STOCKHOLDERS’ EQUITY
Securities sold under agreements to repurchase	2,353	0
Total liabilities	6,764,140	2,677,912
Stockholders’ equity:
Common stock	549	243
Additional paid-in capital	1,117,879	449,427
Retained earnings	147,911	83,968
Accumulated other comprehensive income	19,061	(2,930)
Treasury stock	(94,603)	(70)
Total stockholders’ equity	1,190,797	530,638	$ 488,929	$ 239,088
Total liabilities and stockholders’ equity	7,954,937	3,208,550
Veritex Holdings, Inc.
ASSETS
Cash and cash equivalents	45,563	40,474
Investment in subsidiaries	1,289,273	506,902
Other assets	2,780	940
Total assets	1,337,616	548,316
LIABILITIES AND STOCKHOLDERS’ EQUITY
Other liabilities	1,248	987
Securities sold under agreements to repurchase	145,571	16,691
Total liabilities	146,819	17,678
Stockholders’ equity:
Common stock	511	243
Additional paid-in capital	1,117,879	449,427
Retained earnings	147,911	83,968
Accumulated other comprehensive income	19,061	(2,930)
Treasury stock	(94,565)	(70)
Total stockholders’ equity	1,190,797	530,638
Total liabilities and stockholders’ equity	$ 1,337,616	$ 548,316

Loans and Allowance for Loan Losses Loans and Allowance for Loan Losses - PCI Accretable Yield Rollforward (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Balance at beginning of period	$ 18,747	$ 2,723	$ 0
Additions	19,870	1,459	3,927
Reclassifications from nonaccretable	12,719	19,162	0
Accretion	(13,112)	(4,597)	(1,204)
Balance at year-end	38,224	18,747	$ 2,723
Cash collections of certain loans acquired in transfer accounted for as debt securities	$ 440	$ 4,113

Loans and Allowance for Loan Losses

12 Months Ended

Dec. 31, 2019

Receivables [Abstract]

Loans and Allowance for Loan Losses

Loans in the accompanying consolidated balance sheets are summarized as follows:


	December 31,
	2019		2018
Real estate:
Construction and land	$	629,374	$	324,863
Farmland	16,939		10,528
1 - 4 family residential	549,811		297,917
Multi-family residential	320,041		51,285
Commercial real estate	2,490,983		1,103,032
Commercial	1,712,838		760,772
Mortgage warehouse	183,628		—
Consumer	17,457		7,112
	5,921,071		2,555,509
Deferred loan costs (fees)	134		(15)
Allowance for loan losses	(29,834)		(19,255)
	$	5,891,371	$	2,536,239

Included in the net loan portfolio as of December 31, 2019 and 2018 is an accretable discount related to purchased performing and PCI loans acquired in connection with a business combination in the approximate amounts of $57,811 and $22,309, respectively. The discount is being accreted into income on a level-yield basis over the life of the loans. In addition, included in the net loan portfolio as of December 31, 2019 and 2018 is a discount on retained loans from sale of originated Small Business Administration (“SBA”) loans of $2,193 and $2,398, respectively.

The majority of the loan portfolio consists of loans to businesses and individuals in the Dallas-Fort Worth metroplex and the Houston metropolitan area. This geographic concentration subjects the loan portfolio to the general economic conditions within these areas. The risks created by this concentration have been considered by management in the determination of the adequacy of the allowance for loan losses. Management believes the allowance for loan losses was adequate to cover estimated losses on loans as of December 31, 2019 and 2018.

Non-Accrual and Past Due Loans

Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are placed on non-accrual status when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. Loans may be placed on non-accrual status regardless of whether or not such loans are considered past due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Non-accrual loans, aggregated by class of loans, as of December 31, 2019 and 2018, were as follows:


	December 31,
	2019		2018
Real estate:
Construction and land	$	567	$	2,399
Farmland	—		—
1 - 4 family residential	1,581		—
Multi-family residential	—		—
Commercial real estate	21,905		2,575
Commercial	5,672		19,769
Mortgage warehouse	—		—
Consumer	54		2
	$	29,779	$	24,745

There were no PCI loans included in non-accrual loans at December 31, 2019. At December 31, 2018, non-accrual loans included PCI loans of $16,902 for which discount accretion has been suspended because the extent and timing of future cash flows from these PCI loans can no longer be reasonably estimated.

During the year ended December 31, 2019 and 2018, interest income not recognized on non-accrual loans, excluding PCI loans, was $1,672 and $724, respectively.

An age analysis of past due loans, aggregated by class of loans, as of December 31, 2019 and 2018 is as follows:


	December 31, 2019
	30 to 59 Days		60 to 89 Days		90 Days or Greater		Total Past Due		Total Current		PCI		Total Loans		Total 90 Days Past Due and Still Accruing⁽¹⁾
Real estate:
Construction and land	$	—	$	—	$	—	$	—	$	629,374	$	3,947	$	629,374	$	800
Farmland	—		—		—		—		16,939		—		16,939		—
1 - 4 family residential	2,595		520		1,155		4,270		541,772		3,769		549,811		959
Multi-family residential	—		—		—		—		320,041		—		320,041		—
Commercial real estate	12		3,834		868		4,714		2,389,415		96,854		2,490,983		511
Commercial	3,572		1,707		1,497		6,776		1,684,043		22,019		1,712,838		1,317
Mortgage warehouse	—		—		—		—		183,628		—		183,628		—
Consumer	30		2,641		140		2,811		14,646		129		17,457		73
	$	6,209	$	8,702	$	3,660	$	18,571	$	5,779,858	$	126,718	$	5,921,071	$	3,660

⁽¹⁾ Loans 90 days past due and still accruing excludes $41,328 of PCI loans as of December 31, 2019.


	December 31, 2018
	30 to 59 Days		60 to 89 Days		90 Days or Greater		Total Past Due		Total Current		PCI		Total Loans		Total 90 Days Past Due and Still Accruing⁽¹⁾
Real estate:
Construction and land	$	305	$	—	$	—	$	305	$	324,558	$	—	$	324,863	$	—
Farmland	—		—		—		—		10,528		—		10,528		—
1 - 4 family residential	131		266		—		397		297,435		85		297,917		—
Multi-family residential	—		—		—		—		51,285		—		51,285		—
Commercial real estate	3,465		—		—		3,465		1,082,559		17,008		1,103,032		—
Commercial	816		828		—		1,644		735,391		23,737		760,772		—
Consumer	10		—		—		10		7,102		—		7,112		—
	$	4,727	$	1,094	$	—	$	5,821	$	2,508,858	$	40,830	$	2,555,509	$	—

⁽¹⁾Loans 90 days past due and still accruing excludes $527 of PCI loans as of December 31, 2018.

Loans 90 days past due and still accruing interest were $3,660 as of December 31, 2019. No loans were 90 days past due and still accruing as of December 31, 2018. These loans are considered well-secured and in the process of collection as of the reporting date with plans in place for the borrowers to bring the loans fully current. The Company believes that it will collect all principal and interest due on each of the loans 90 days past due and still accruing.

Impaired Loans

Impaired loans are those loans where it is probable the Company will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. All troubled debt restructurings (“TDRs”) are considered impaired loans. Impaired loans are measured based on either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the fair value of the collateral if the loan is collateral dependent. A majority of the Company’s impaired loans are measured at the present value of expected future cash flows discounted at the loan's effective interest rate or the fair value of the collateral. Impaired loans, or portions thereof, are charged off when deemed uncollectible.

Impaired loans, including TDRs, at December 31, 2019 and 2018 are summarized in the following tables.


	December 31, 2019⁽¹⁾
	Unpaid Contractual Principal Balance		Recorded Investment with No Allowance		Recorded Investment with Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment YTD
Real estate:
Construction and land	$	567	$	—	$	567	$	567	$	128	$	1,793
Farmland	—		—		—		—		—		—
1 - 4 family residential	156		—		156		156		37		158
Multi-family residential	—		—		—		—		—		—
Commercial real estate	21,644		21,040		604		21,644		395		22,529
Commercial	5,188		2,011		3,177		5,188		1,042		8,546
Mortgage warehouse	—		—		—		—		—		—
Consumer	61		61		—		61		—		62
Total	$	27,616	$	23,112	$	4,504	$	27,616	$	1,602	$	33,088

⁽¹⁾Loans reported exclude PCI loans.


	December 31, 2018⁽¹⁾
	Unpaid Contractual Principal Balance		Recorded Investment with No Allowance		Recorded Investment with Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment YTD
Real estate:
Construction and land	$	2,016	$	2,016	$	—	$	2,016	$	—	$	2,262
Farmland	—		—		—		—		—		—
1 - 4 family residential	542		542		—		542		—		565
Multi-family residential	—		—		—		—		—		—
Commercial real estate	2,939		2,939		—		2,939		—		3,032
Commercial	3,228		644		2,584		3,228		368		3,351
Consumer	66		66		—		66		—		79
Total	$	8,791	$	6,207	$	2,584	$	8,791	$	368	$	9,289

⁽¹⁾Loans reported exclude PCI loans.

Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis.

Troubled Debt Restructuring

Modifications of terms for the Company’s loans and their inclusion as TDRs are based on individual facts and circumstances. Loan modifications that are included as TDRs may involve a reduction of the stated interest rate of the loan, an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk, or deferral of principal payments, regardless of the period of the modification. The recorded investment in TDRs was $2,142 and $1,171 as of December 31, 2019 and 2018, respectively.

There were two and three new TDRs during the years ended December 31, 2019 and 2018. The terms of certain loans modified as TDRs during the year ended December 31, 2019 and December 31, 2018 are summarized in the following tables:


				During the year ended December 31, 2019
				Post-Modification Outstanding Recorded Investment
	Number of Loans	Pre- Modification Outstanding Recorded Investment		Adjusted Interest Rate		Extended Maturity		Extended Maturity and Restructured Payments		Extended Maturity, Restructured Payments and Adjusted Interest Rate






Commercial	2	$	1,034	—		$	115	$	919	—

Total	2	$	1,034	$	—	$	115	$	919	$	—


				During the year ended December 31, 2018
				Post-Modification Outstanding Recorded Investment
	Number of Loans	Pre- Modification Outstanding Recorded Investment		Adjusted Interest Rate		Extended Maturity		Extended Maturity and Restructured Payments		Extended Maturity, Restructured Payments and Adjusted Interest Rate






Commercial	3	$	628	$	—	$	612	$	—	$	—

Total	3	$	628	$	—	$	612	$	—	$	—

All TDRs are measured individually for impairment. Of the two new TDR loans during the year ended December 31, 2019, none were past due and two were performing as agreed to in the modified terms. There was no specific allowance for loan loss recorded for the two new TDR loans as of December 31, 2019.

Interest income recorded during 2019, 2018 and 2017 on TDR loans and interest income that would have been recorded had the terms of the loan not been modified was minimal.

There were no loans modified as a TDR loan for which there was a payment default during the year ended December 31, 2019 or December 31, 2018. A default for purposes of this disclosure is a TDR loan as to which the borrower is 90 days past due or results in the foreclosure and repossession of the applicable collateral.

The Company has not committed to lend additional amounts to customers with outstanding loans that were classified as TDRs as of December 31, 2019 and 2018.

Credit Quality Indicators

From a credit risk standpoint, the Company classifies its loans in one of the following categories: (i) pass, (ii) special mention, (iii) substandard or (iv) doubtful. Loans classified as loss are charged off. Loans not rated special mention, substandard, doubtful or loss are classified as pass loans.

The classification of each loan reflects a judgment about the risks of default and loss associated with the loan. The Company reviews the ratings on criticized credits monthly. Ratings are adjusted to reflect the degree of risk and loss that is felt to be inherent in each credit as of each monthly reporting period. All classified credits are evaluated for impairment. If impairment is determined to exist, a specific reserve is established. The Company’s methodology is structured so that specific reserves are increased in accordance with deterioration in credit quality (and a corresponding increase in risk and loss) or decreased in accordance with improvement in credit quality (and a corresponding decrease in risk and loss).

Credits rated special mention show clear signs of financial weaknesses or deterioration in creditworthiness; however, such concerns are generally not so pronounced that the Company expects to experience significant loss in the short term. Such credits typically maintain the ability to perform within standard credit terms and credit exposure is not as prominent as credits with a lower rating.

Credits rated substandard are those in which the normal repayment of principal and interest may be, or has been, jeopardized by reason of adverse trends or developments of a financial, managerial, economic or political nature, or important weaknesses existing in the applicable collateral. A protracted workout on these credits is a distinct possibility. Prompt corrective action is therefore required to strengthen the Company’s position and/or to reduce exposure and to assure that adequate remedial measures are taken by the borrower. Credit exposure becomes more likely in such credits and a serious evaluation of the secondary support to the credit is performed.

Credits rated doubtful are those in which full collection of principal appears highly questionable, and in which some degree of loss is anticipated, even though the ultimate amount of loss may not yet be certain and/or other factors exist that could affect collection of debt. Based upon available information, positive action by the Company is required to avert or minimize loss. Credits rated doubtful are generally also placed on non-accrual.

Credits classified as PCI are those that, at the applicable acquisition date, had the characteristics of substandard loans and it was probable, at acquisition, that all contractually required principal and interest payments would not be collected. The Company evaluates these loans quarterly on a projected cash flow basis.

The following tables summarize the Company’s internal ratings of its loans, including PCI loans, as of December 31, 2019 and 2018:


	December 31, 2019
	Pass		Special Mention		Substandard		Doubtful		PCI		Total
Real estate:
Construction and land	$	618,773	$	3,965	$	2,689	$	—	$	3,947	$	629,374
Farmland	16,939		—		—		—		—		16,939
1 - 4 family residential	541,787		795		3,460		—		3,769		549,811
Multi-family residential	320,041		—		—		—		—		320,041
Commercial real estate	2,332,357		23,494		38,278		—		96,854		2,490,983
Commercial	1,610,150		51,999		28,670		—		22,019		1,712,838
Mortgage warehouse	183,628		—		—		—		—		183,628
Consumer	17,106		40		182		—		129		17,457
Total	$	5,640,781	$	80,293	$	73,279	$	—	$	126,718	$	5,921,071


	December 31, 2018
	Pass		Special Mention		Substandard		Doubtful		PCI		Total
Real estate:
Construction and land	$	320,987	$	1,860	$	2,016	$	—	$	—	$	324,863
Farmland	10,528		—		—		—		—		10,528
1 - 4 family residential	296,870		236		726		—		85		297,917
Multi-family residential	51,285		—		—		—		—		51,285
Commercial real estate	1,065,982		7,056		12,986		—		17,008		1,103,032
Commercial	720,583		8,900		7,552		—		23,737		760,772
Consumer	6,950		—		162		—		—		7,112
Total	$	2,473,185	$	18,052	$	23,442	$	—	$	40,830	$	2,555,509

An analysis of the allowance for loan losses for the years ended December 31, 2019, 2018 and 2017 is as follows:


	For the		For the		For the
	Year Ended		Year Ended		Year Ended
	December 31, 2019		December 31, 2018		December 31, 2017
Balance at beginning of year	$	19,255	$	12,808	$	8,524
Provision charged to earnings	21,514		6,603		5,114
Charge-offs	(11,320)		(197)		(839)
Recoveries	385		41		9
Net charge-offs	(10,935)		(156)		(830)
Balance at end of year	$	29,834	$	19,255	$	12,808

The allowance for loan losses as a percentage of total loans was 0.50%, 0.75% and 0.57% as of December 31, 2019, 2018 and 2017, respectively.

The following tables summarize the activity in the allowance for loan losses by portfolio segment for the periods indicated. There were no allowance for loan losses related to PCI loans at December 31, 2017.


	December 31, 2019
	Real Estate
	Construction, Land and Farmland		Residential		Commercial Real Estate		Commercial		Consumer		Total
Balance at beginning of year	$	2,244	$	1,975	$	6,463	$	8,554	$	19	$	19,255
Provision (recapture) charged to earnings	1,639		1,458		3,654		14,487		276		21,514
Charge-offs	—		(157)		—		(10,898)		(265)		(11,320)
Recoveries	—		67		—		226		92		385
Net charge-offs	—		(90)		—		(10,672)		(173)		(10,935)
Balance at end of year	$	3,883	$	3,343	$	10,117	$	12,369	$	122	$	29,834

Period-end amount allocated to:
Specific reserves	$	128	$	37	$	395	$	1,042	$	—	$	1,602
PCI reserves	—		—		20		573		—		593
General reserves	3,755		3,306		9,702		10,754		122		27,639
Total	$	3,883	$	3,343	$	10,117	$	12,369	$	122	$	29,834


	December 31, 2018
	Real Estate
	Construction, Land and Farmland		Residential		Commercial Real Estate		Commercial		Consumer		Total
Balance at beginning of year	$	1,315	$	1,473	$	4,410	$	5,588	$	22	$	12,808
Provision (recapture) charged to earnings	929		502		2,053		3,100		19		6,603
Charge-offs	—		—		—		(175)		(22)		(197)
Recoveries	—		—		—		41		—		41
Net charge-offs	—		—		—		(134)		(22)		(156)
Balance at end of year	$	2,244	$	1,975	$	6,463	$	8,554	$	19	$	19,255

Period-end amount allocated to:
Specific reserves:	$	—	$	—	$	—	$	368	$	—	$	368
PCI reserves	—		—		—		1,302		—		1,302
General reserves	2,244		1,975		6,463		6,884		19		17,585
Total	$	2,244	$	1,975	$	6,463	$	8,554	$	19	$	19,255


	December 31, 2017
	Real Estate
	Construction, Land and Farmland		Residential		Commercial Real Estate		Commercial		Consumer		Total
Balance at beginning of year	$	1,415	$	1,116	$	3,003	$	2,955	$	35	$	8,524
(Recapture) provision charged to earnings	(100)		368		1,407		3,452		(13)		5,114
Charge-offs	—		(11)		—		(828)		—		(839)
Recoveries	—		—		—		9		—		9
Net charge-offs	—		(11)		—		(819)		—		(830)
Balance at end of year	$	1,315	$	1,473	$	4,410	$	5,588	$	22	$	12,808

Period-end amount allocated to:
Specific reserves:	$	—	$	—	$	—	$	12	$	—	$	12
PCI reserves	—		—		—		—		—		—
General reserves	1,315		1,473		4,410		5,576		22		12,796
Total	$	1,315	$	1,473	$	4,410	$	5,588	$	22	$	12,808

The Company’s recorded investment in loans as of December 31, 2019 and 2018 related to the balance in the allowance for loan losses on the basis of the Company’s impairment methodology is as follows:


	December 31, 2019
	Real Estate
	Construction, Land and Farmland		Residential		Commercial Real Estate		Commercial¹		Consumer		Total
Loans individually evaluated for impairment	$	567	$	156	$	21,644	$	5,188	$	61	$	27,616
Loans collectively evaluated for impairment	641,799		865,927		2,372,485		1,869,259		17,267		5,766,737
PCI loans	3,947		3,769		96,854		22,019		129		126,718
Total	$	646,313	$	869,852	$	2,490,983	$	1,896,466	$	17,457	$	5,921,071

¹ Commercial loans collectively evaluated for impairment includes mortgage warehouse.


	December 31, 2018
	Real Estate
	Construction, Land and Farmland		Residential		Commercial Real Estate		Commercial		Consumer		Total
Loans individually evaluated for impairment	$	2,016	$	542	$	2,939	$	3,228	$	66	$	8,791
Loans collectively evaluated for impairment	333,375		348,575		1,083,085		733,807		7,046		2,505,888
PCI loans	—		85		17,008		23,737		—		40,830
Total	$	335,391	$	349,202	$	1,103,032	$	760,772	$	7,112	$	2,555,509

Loans acquired with evidence of credit quality deterioration at acquisition, for which it was probable that the Company would not be able to collect all contractual amounts due, were accounted for as PCI loans. The carrying amount of PCI loans included in the consolidated balance sheets and the related outstanding balances at December 31, 2019 and 2018 are set forth in the table below. The outstanding balance represents the total amount owed, including accrued but unpaid interest, and any amounts previously charged off.


	December 31, 2019		December 31, 2018
Carrying amount	$	126,125	$	39,528
Outstanding balance	157,417		49,902

Changes in the accretable yield for PCI loans for the years ended December 31, 2019, 2018 and 2017 are included in table below.


	Year Ended December 31, 2019		Year Ended December 31, 2018		Year Ended December 31, 2017
Balance at beginning of period	$	18,747	$	2,723	$	—
Additions	19,870		1,459		3,927

Reclassifications from nonaccretable	12,719		19,162		—

Accretion	(13,112)		(4,597)		(1,204)
Balance at year-end	$	38,224	$	18,747	$	2,723

During the years ended December 31, 2019 and 2018, the Company received cash collections in excess of expected cash flows on PCI loans accounted for individually and not aggregated into loan pools of $440 and $4,113, respectively.

Servicing Assets

The Company was servicing loans of approximately $205,210 and $71,159 as of December 31, 2019 and 2018, respectively. A summary of the changes in the related servicing assets are as follows:


	Year Ended December 31,
	2019		2018
Balance at beginning of year	$	1,304	$	1,215
Servicing assets acquired through acquisition	2,382		—
Increase from loan sales	1,253		470

Amortization charged as a reduction to income	(1,826)		(381)

Balance at year-end	$	3,113	$	1,304

The estimated fair value of the servicing assets approximated the carrying amount at December 31, 2019 and 2018. Fair value is estimated by discounting estimated future cash flows from the servicing assets using discount rates that approximate current market rates over the expected lives of the loans being serviced. A valuation allowance is recorded when the fair value is below the carrying amount of the asset. As of December 31, 2019 and 2018, there were no valuation allowances recorded.

The Company may also receive a portion of subsequent interest collections on loans sold that exceed the contractual servicing fees. In that case, the Company records an interest-only strip based on its relative fair market value and the other components of the loans. There was no interest-only strip receivable recorded at December 31, 2019 and 2018.

During the years ended December 31, 2019, 2018 and 2017, the Bank sold $64,830, $26,662 and $27,747, respectively, of SBA loans held for investment resulting in a gain of $4,388, $2,348 and $1,940, respectively. The gain on sale of SBA loans is recorded in gain on sales of loans in the accompanying consolidated statements of income.

Securities - Debt Securities (Details) - USD ($)	Jan. 01, 2019	Dec. 31, 2019	Dec. 31, 2018
Available for Sale
Total investment securities available for sale, amortized cost basis		$ 942,131,000	$ 266,404,000
Gross unrealized gains		23,997,000	392,000
Gross unrealized losses		1,763,000	4,101,000
Total investment securities available for sale, fair value		964,365,000	262,695,000
Held to maturity
Amortized cost		32,965,000	0
Gross unrecognized gains		1,845,000
Gross unrecognized loss		0
Fair value		34,810,000
Debt securities, available-for-sale, transfer to trading, gain (loss)	$ 0
U.S. government agencies
Available for Sale
Total investment securities available for sale, amortized cost basis			9,096,000
Gross unrealized gains			0
Gross unrealized losses			118,000
Total investment securities available for sale, fair value			8,978,000
Corporate bonds
Available for Sale
Total investment securities available for sale, amortized cost basis		76,997,000	26,518,000
Gross unrealized gains		1,974,000	84,000
Gross unrealized losses		0	134,000
Total investment securities available for sale, fair value		78,971,000	26,468,000
Municipal securities
Available for Sale
Total investment securities available for sale, amortized cost basis		74,956,000	40,275,000
Gross unrealized gains		3,724,000	10,000
Gross unrealized losses		0	338,000
Total investment securities available for sale, fair value		78,680,000	39,947,000
Held to maturity
Amortized cost		22,535,000
Gross unrecognized gains		1,350,000
Gross unrecognized loss		0
Fair value		23,885,000
Debt securities, held-to-maturity, transfer, amount	4,758,000
Mortgage-backed securities
Available for Sale
Total investment securities available for sale, amortized cost basis		288,938,000	97,117,000
Gross unrealized gains		9,512,000	101,000
Gross unrealized losses		260,000	2,167,000
Total investment securities available for sale, fair value		298,190,000	95,051,000
Held to maturity
Amortized cost		8,621,000
Gross unrecognized gains		452,000
Gross unrecognized loss		0
Fair value		9,073,000
Debt securities, held-to-maturity, transfer, amount	$ 3,045,000
Collateralized mortgage obligations
Available for Sale
Total investment securities available for sale, amortized cost basis		431,276,000	92,906,000
Gross unrealized gains		6,465,000	197,000
Gross unrealized losses		1,503,000	1,344,000
Total investment securities available for sale, fair value		436,238,000	91,759,000
Held to maturity
Amortized cost		1,809,000
Gross unrecognized gains		43,000
Gross unrecognized loss		0
Fair value		1,852,000
Asset-backed securities
Available for Sale
Total investment securities available for sale, amortized cost basis		69,964,000	492,000
Gross unrealized gains		2,322,000	0
Gross unrealized losses		0	0
Total investment securities available for sale, fair value		$ 72,286,000	$ 492,000

Income Taxes - Reconciliation of Statutory Rate (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Federal incomes tax expense rate at 21% for December 31, 2019 and 2018 and 35% for December 31, 2017									$ 24,330	$ 10,550	$ 9,863
Bank-owned life insurance									(422)	(124)	(206)
Non-deductible transaction costs									308	727	202
Tax exempt interest income									(391)	(169)	(178)
Impact of IRS Settlement									(1,556)	0	0
Deferred tax asset re-measurement due to the Tax Act									0	34	3,051
162(m) Disallowance									1,512	0	0
State Taxes									760	110	0
Other									580	(232)	297
Total income tax expense	$ 8,168	$ 7,595	$ 7,369	$ 1,989	$ 3,587	$ 1,448	$ 2,350	$ 3,511	$ 25,121	$ 10,896	$ 13,029
Effective tax rate (in percent)									21.70%	21.70%	46.20%

Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Balance Sheet


	December 31, 2019
			Estimated Fair Value
	Notional Amount		Asset Derivative		Liability Derivative
Derivatives designated as hedging instruments (cash flow hedges):
Commercial loan interest rate floor	$	275,000	$	3,353	$	—
Total derivatives designated as hedging instruments	275,000		3,353		—

Derivatives not designated as hedging instruments:
Financial institution counterparty:
Interest rate swaps	222,394		105		4,736
Interest rate caps and collars	90,093		11		—
Commercial customer counterparty:
Interest rate swaps	222,394		4,393		84
Interest rate caps and collars	90,093		—		11
Total derivatives not designated as hedging instruments	624,974		4,509		4,831
Offsetting derivative assets/liabilities			(2,895)		(2,895)
Total derivatives	$	899,974	$	4,967	$	1,936

Derivative Instruments, Gain (Loss)

Pre-tax gain (loss) included in the condensed consolidated statements of income and related to derivative instruments for the year ended December 31, 2019 was as follows:


	For the Year Ended December 31, 2019
	Gain recognized in other comprehensive income on cash flow derivative		Loss recognized in interest income on cash flow derivative (amount excluded from effectiveness testing)		Loss recognized in noninterest income
Derivatives designated as hedging instruments (cash flow hedges):
Commercial loan interest rate floors	$	1,497	$	(808)	$	—

Derivatives not designated as hedging instruments:
Interest rate swaps, caps and collars	$	—	$	—	$	550

Schedule of Derivative Instruments Outstanding

The following is a summary of the interest rate swaps outstanding as of December 31, 2019. The Company did not have interest rate swaps outstanding as of December 31, 2018.


	December 31, 2019
	Notional Amount		Fixed Rate	Floating Rate	Maturity	Fair Value
Non-hedging derivative instruments:
Customer interest rate derivative:
Interest rate swaps - receive fixed/pay floating	$	222,394	2.944 - 8.470%	LIBOR 1 month + 0% - 5.00% PRIME H15 - 0.250%	Wtd. Avg. 3.3 years	$	(4,632)
Interest rate caps and collars	$	90,093	2.430% / 5.80	LIBOR 1 month + 0% - 3.75%	Wtd. Avg. 1.5 years	$	11

Correspondent interest rate derivative:
Interest rate swaps - pay fixed/receive floating	$	222,394	2.944 - 8.470%	LIBOR 1 month + 0% - 5.00% PRIME H15 - 0.250%	Wtd. Avg. 3.3 years	$	4,309
Interest rate caps and collars	$	90,093	3.000% / 5.800%	LIBOR 1 month + 0% - 3.75%	Wtd. Avg. 1.5 years	$	(11)

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

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Supplemental Cash Flow Elements [Abstract]

Supplemental Statement of Cash Flows (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Other Supplemental Cash Flow Information

Other supplemental cash flow information is presented below:


	Year Ended December 31,
	2019		2018		2017
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest	$	88,175	$	29,178	$	10,680
Cash paid for income taxes	24,100		6,525		9,761
Supplemental Disclosures of Non-Cash Flow Information:

Setup of ROU asset and lease liability upon adoption of ASC 842	$	9,380	$	—	$	—
Reclassification of deferred offering costs paid in 2018 from other assets to additional paid-in-capital	788		—		—
Subordinated debt issuance costs accrued but not yet paid in 2019	315		—		—
Reclassification of lease intangibles, cease-use liability and deferred rent liability to ROU asset upon adoption of ASC 842	(48)		—		—
Net issuance of common stock for vesting of restricted stock units	1,349		595		312
Net foreclosure of other real estate owned and repossessed assets	5,995		8		1,037
Reclassification of branch assets held for sale to loans held for investment	26,171		—		33,552
Reclassification of branch liabilities held for sale to interest-bearing transaction and savings deposits	1,713		—		64,627

Schedule of Supplemental Noncash Investing Activities


	Year Ended December 31,
	2019		2018		2017
Noncash assets acquired¹
Investment securities	$	660,792	$	—	$	220,444
Equity securities	12,322		—		—
Federal Home Loan Bank and Federal Reserve Bank stock	29,490		—		8,847
Loans held for sale	9,360		—		—
Loans held for investment	3,245,248		(4,050)		1,060,436
Accrued interest receivable²	11,395		—		4,293
Bank-owned life insurance	56,841		—		—
Bank premises, furniture and equipment	36,855		1,162		24,424
Investment in trusts	666		—		—
Other real estate owned	—		—		448
Intangible assets, net	65,718		(956)		16,722
Goodwill	209,393		1,995		134,797
Other assets	11,124		1,806		484,097
Right of use asset²	9,373		—		—
Deferred taxes²	11,783		—		—
Current taxes²	1,812		—		—
Assets held for sale	85,307		—		—
Total assets	$	4,457,479	$	(43)	$	1,954,508
Noncash liabilities assumed
Non-interest-bearing deposits	$	825,364	$	303	$	333,912
Interest-bearing deposits	1,300,825		—		512,750
Certificates and other time deposits	1,346,915		—		358,555
Accounts payable and accrued expenses³	26,491		—		7,571
Lease liability⁴	9,373		—		—
Accrued interest payable	5,181		(260)		948
Securities sold under agreements to repurchase	3,226		—		—
Advances from Federal Home Loan Bank	300,000		—		84,625
Subordinated debentures and subordinated notes	56,233		—		8,609
Liabilities held for sale	52,682		—		—
Total liabilities	$	3,926,290	$	43	$	1,306,970
Non-cash equity assumed
Preferred stock - series D	—		—		24,500
Total equity	—		—		24,500
29,532,957 shares of common stock exchanged in connection with Green	$	631,415	—		—
497,594 share of common stock exchanged in connection with Green vested RSUs	$	5,801	—		—
5,117,642 shares of common stock exchanged in connection with the Sovereign acquisition	—		—		$	136,385
1,449,944 shares of common stock exchanged in connection with the Liberty acquisition	—		—		$	40,337

¹Noncash assets acquired and noncash liabilities assumed during 2019 relate to our acquisition of Green. Refer to Note 25 for further discussion. Noncash assets acquired and noncash liabilities assumed during 2018 and 2017 relate to our acquisitions of Sovereign and Liberty.

² Accrued interest receivable, right of use asset, deferred taxes and current taxes are included in "Other assets" in our consolidated balance sheets for the year ended December 31, 2019.

³ Accounts payable and accrued expenses includes accrued preferred stock dividends of $185 for the year ended December 31, 2017.

⁴ Lease liability is included in "Accounts payable and other accrued expenses" in our consolidated balance sheets for the year ended December 31, 2019.

Parent Company Only Financial Statements - Cash Flow (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities:
Net income	$ 90,739	$ 39,341	$ 15,152
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Net cash provided by operating activities	103,960	50,388	26,662
Cash flows from investing activities:
Net cash used in investing activities	(46,339)	(400,010)	(124,855)
Cash flows from financing activities:
Issuance of subordinated note	75,000	0	0
Proceeds from exercise of employee stock options	3,938	454	175
Proceeds from payments on ESOP Loan	0	109	109
Offering costs paid in connection with acquisitions	0	(899)	(772)
Purchase of treasury stock	(94,533)	0	0
Dividends paid	(26,796)	0	0
Dividends paid on preferred stock	0	0	(227)
Net cash provided by financing activities	109,480	285,027	12,446
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect	167,101	(64,595)	(85,747)
Cash and cash equivalents at beginning of year	84,449	149,044	234,791
Cash and cash equivalents at end of year	251,550	84,449	149,044
Veritex Holdings, Inc.
Cash flows from operating activities:
Net income	90,739	39,341	15,152
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Amortization of debt discount, net and debt issuance costs	2,353	2	45
Equity in undistributed net income of Bank	(43,199)	(44,850)	(17,980)
Decrease (increase) in other assets	(1,861)	2,226	3,523
(Decrease) increase in other liabilities	(6,370)	(2,635)	1,353
Net cash provided by operating activities	41,662	(5,916)	2,093
Cash flows from investing activities:
Net cash used in investing activities	5,818	0	(80,761)
Cash flows from financing activities:
Issuance of subordinated note	75,000	0	0
Net proceeds from sale of common stock in public offering	0	2	56,681
Redemption of preferred stock	0	0	(24,500)
Net change in other borrowings	0	0	(4,625)
Proceeds from exercise of employee stock options	3,938	454	175
Proceeds from payments on ESOP Loan	0	109	109
Offering costs paid in connection with acquisitions	0	(899)	(772)
Purchase of treasury stock	(94,533)	0	0
Dividends paid	(26,796)	0	0
Dividends paid on preferred stock	0	0	(42)
Net cash provided by financing activities	(42,391)	(334)	27,026
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect	5,089	(6,250)	(51,642)
Cash and cash equivalents at beginning of year	40,474	46,724	98,366
Cash and cash equivalents at end of year	45,563	40,474	46,724
Sovereign acquisition \| Veritex Holdings, Inc.
Cash flows from investing activities:
Net cash paid in Sovereign acquisition	0	0	(55,949)
Liberty acquisition \| Veritex Holdings, Inc.
Cash flows from investing activities:
Net cash paid in Sovereign acquisition	0	0	(24,812)
Green Bancorp, Inc.
Cash flows from investing activities:
Net cash paid in Sovereign acquisition	112,710	0	0
Green Bancorp, Inc. \| Veritex Holdings, Inc.
Cash flows from investing activities:
Net cash paid in Sovereign acquisition	$ 5,818	$ 0	$ 0

Advances from the Federal Home Loan Bank ("FHLB") - Additional Information (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Advances from Federal Home Loan Bank	$ 677,870	$ 28,019
Availability to borrow additional funds	$ 752,663
Weighted Average
Debt Instrument [Line Items]
Advances from Federal Home Loan Bank, weighted average rate	1.48%

Branch Assets and Liabilities Held For Sale	12 Months Ended
Branch Assets and Liabilities Held For Sale	Dec. 31, 2019
Discontinued Operations and Disposal Groups [Abstract]
Branch Assets and Liabilities Held For Sale	Branch Assets and Liabilities Held for Sale Upon the closing of the Green acquisition, the Company acquired branch assets held for sale and assumed branch liabilities held for sale pursuant to a purchase and assumption agreement entered into by Green with Keystone Bank, N.A. ("Keystone") prior the acquisition date, pursuant to which Green had agreed to sell certain assets and deposits associated with one branch in the Austin metropolitan market. On May 10, 2019, the Company completed the sale of these assets and liabilities to Keystone, resulting in a cash settlement payment of $7,153 from Keystone and the recognition of a loss on the sale of $474 reported in merger and acquisition expense on the condensed consolidated statements of income for the year ended December 31, 2019. The completion of the sale resulted in the Company exiting the Austin metropolitan market. There were no branch assets and liabilities held for sale as of December 31, 2019 or 2018.

Other Credit Extensions (Details)	Dec. 31, 2019 USD ($) credit_facility	Dec. 31, 2018 USD ($) credit_facility
Federal Funds Credit Extensions With Commercial Banks
Other Credit Extensions
Number of credit facilities \| credit_facility	3	2
Maximum available borrowings	$ 150,000,000	$ 75,000,000
Outstanding borrowings	0	0
Federal Reserve Bank Secured Line Of Credit
Other Credit Extensions
Maximum available borrowings	1,022,401,000	524,016,000
Outstanding borrowings	0	0
Amounts of commercial loans pledged as collateral	$ 843,861,000	$ 404,981,000

Loans and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Impaired Loans
Unpaid Contractual Principal Balance	$ 27,616	$ 8,791
Recorded Investment with No Allowance	23,112	6,207
Recorded Investment with Allowance	4,504	2,584
Total Recorded Investment	27,616	8,791
Related Allowance	1,602	368
Average Recorded Investment During YTD	33,088	9,289
Real Estate \| Construction and land
Impaired Loans
Unpaid Contractual Principal Balance	567	2,016
Recorded Investment with No Allowance	0	2,016
Recorded Investment with Allowance	567	0
Total Recorded Investment	567	2,016
Related Allowance	128	0
Average Recorded Investment During YTD	1,793	2,262
Real Estate \| Farmland
Impaired Loans
Unpaid Contractual Principal Balance	0	0
Recorded Investment with No Allowance	0	0
Recorded Investment with Allowance	0	0
Total Recorded Investment	0	0
Related Allowance	0	0
Average Recorded Investment During YTD	0	0
Real Estate \| Commercial Real Estate
Impaired Loans
Unpaid Contractual Principal Balance	21,644	2,939
Recorded Investment with No Allowance	21,040	2,939
Recorded Investment with Allowance	604	0
Total Recorded Investment	21,644	2,939
Related Allowance	395	0
Average Recorded Investment During YTD	22,529	3,032
Real Estate \| 1 - 4 family residential \| Real estate
Impaired Loans
Unpaid Contractual Principal Balance	156	542
Recorded Investment with No Allowance	0	542
Recorded Investment with Allowance	156	0
Total Recorded Investment	156	542
Related Allowance	37	0
Average Recorded Investment During YTD	158	565
Real Estate \| Multi-family residential \| Real estate
Impaired Loans
Unpaid Contractual Principal Balance	0	0
Recorded Investment with No Allowance	0	0
Recorded Investment with Allowance	0	0
Total Recorded Investment	0	0
Related Allowance	0	0
Average Recorded Investment During YTD	0	0
Commercial
Impaired Loans
Unpaid Contractual Principal Balance	5,188	3,228
Recorded Investment with No Allowance	2,011	644
Recorded Investment with Allowance	3,177	2,584
Total Recorded Investment	5,188	3,228
Related Allowance	1,042	368
Average Recorded Investment During YTD	8,546	3,351
Mortgage warehouse
Impaired Loans
Unpaid Contractual Principal Balance	0
Recorded Investment with No Allowance	0
Recorded Investment with Allowance	0
Total Recorded Investment	0
Related Allowance	0
Average Recorded Investment During YTD	0
Consumer
Impaired Loans
Unpaid Contractual Principal Balance	61	66
Recorded Investment with No Allowance	61	66
Recorded Investment with Allowance	0	0
Total Recorded Investment	61	66
Related Allowance	0	0
Average Recorded Investment During YTD	$ 62	$ 79

Business Combinations - Assets Held For Sale (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Disposal Group, Held-for-sale, Not Discontinued Operations
Business Acquisition [Line Items]
Cash and cash equivalents		$ 392
Loans		78,366
Bank premises, furniture and equipment		19
Intangible assets		6,013
Other assets		517
Total assets	$ 0	85,307	$ 0
Noninterest-bearing deposits		52,319
Accounts payable and accrued expenses		40
Accrued interest payable and other liabilities		323
Total liabilities	$ 0	52,682	$ 0
Green Bancorp, Inc.
Business Acquisition [Line Items]
Expected selling costs		$ 90

Deposits - Additional Information (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Banking and Thrift [Abstract]
Demand deposit overdrafts reclassified as loans	$ 259	$ 153
Brokered deposits	$ 312,467	$ 234,190

Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Banking and Thrift [Abstract]
Noninterest-bearing demand accounts	$ 1,556,500	$ 626,283
Interest-bearing demand accounts	388,877	146,969
Savings accounts	86,079	33,147
Limited access money market accounts	2,180,016	1,133,045
Certificates of deposit, greater than $100	1,234,324	392,935
Certificates of deposit, less than $100	448,554	290,049
Total deposits	$ 5,894,350	$ 2,622,428

Loans and Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2019

Receivables [Abstract]

Summary of Loans

Loans in the accompanying consolidated balance sheets are summarized as follows:


	December 31,
	2019		2018
Real estate:
Construction and land	$	629,374	$	324,863
Farmland	16,939		10,528
1 - 4 family residential	549,811		297,917
Multi-family residential	320,041		51,285
Commercial real estate	2,490,983		1,103,032
Commercial	1,712,838		760,772
Mortgage warehouse	183,628		—
Consumer	17,457		7,112
	5,921,071		2,555,509
Deferred loan costs (fees)	134		(15)
Allowance for loan losses	(29,834)		(19,255)
	$	5,891,371	$	2,536,239


	December 31, 2019		December 31, 2018
Carrying amount	$	126,125	$	39,528
Outstanding balance	157,417		49,902

Changes in the accretable yield for PCI loans for the years ended December 31, 2019, 2018 and 2017 are included in table below.


	Year Ended December 31, 2019		Year Ended December 31, 2018		Year Ended December 31, 2017
Balance at beginning of period	$	18,747	$	2,723	$	—
Additions	19,870		1,459		3,927

Reclassifications from nonaccretable	12,719		19,162		—

Accretion	(13,112)		(4,597)		(1,204)
Balance at year-end	$	38,224	$	18,747	$	2,723

Schedule of Non-Accrual Loans, Excluding Purchased Credit Impaired Loans, Aggregated By Class of Loans

Non-accrual loans, aggregated by class of loans, as of December 31, 2019 and 2018, were as follows:


	December 31,
	2019		2018
Real estate:
Construction and land	$	567	$	2,399
Farmland	—		—
1 - 4 family residential	1,581		—
Multi-family residential	—		—
Commercial real estate	21,905		2,575
Commercial	5,672		19,769
Mortgage warehouse	—		—
Consumer	54		2
	$	29,779	$	24,745

Schedule of Age Analysis of Past Due Loans, Excluding Purchased Credit Impaired Loans, Aggregated by Class of Loans

An age analysis of past due loans, aggregated by class of loans, as of December 31, 2019 and 2018 is as follows:


	December 31, 2019
	30 to 59 Days		60 to 89 Days		90 Days or Greater		Total Past Due		Total Current		PCI		Total Loans		Total 90 Days Past Due and Still Accruing⁽¹⁾
Real estate:
Construction and land	$	—	$	—	$	—	$	—	$	629,374	$	3,947	$	629,374	$	800
Farmland	—		—		—		—		16,939		—		16,939		—
1 - 4 family residential	2,595		520		1,155		4,270		541,772		3,769		549,811		959
Multi-family residential	—		—		—		—		320,041		—		320,041		—
Commercial real estate	12		3,834		868		4,714		2,389,415		96,854		2,490,983		511
Commercial	3,572		1,707		1,497		6,776		1,684,043		22,019		1,712,838		1,317
Mortgage warehouse	—		—		—		—		183,628		—		183,628		—
Consumer	30		2,641		140		2,811		14,646		129		17,457		73
	$	6,209	$	8,702	$	3,660	$	18,571	$	5,779,858	$	126,718	$	5,921,071	$	3,660

⁽¹⁾ Loans 90 days past due and still accruing excludes $41,328 of PCI loans as of December 31, 2019.


	December 31, 2018
	30 to 59 Days		60 to 89 Days		90 Days or Greater		Total Past Due		Total Current		PCI		Total Loans		Total 90 Days Past Due and Still Accruing⁽¹⁾
Real estate:
Construction and land	$	305	$	—	$	—	$	305	$	324,558	$	—	$	324,863	$	—
Farmland	—		—		—		—		10,528		—		10,528		—
1 - 4 family residential	131		266		—		397		297,435		85		297,917		—
Multi-family residential	—		—		—		—		51,285		—		51,285		—
Commercial real estate	3,465		—		—		3,465		1,082,559		17,008		1,103,032		—
Commercial	816		828		—		1,644		735,391		23,737		760,772		—
Consumer	10		—		—		10		7,102		—		7,112		—
	$	4,727	$	1,094	$	—	$	5,821	$	2,508,858	$	40,830	$	2,555,509	$	—

(1) Loans 90 days past due and still accruing excludes $527 of PCI loans as of December 31, 2018.

Summary of Impaired Loans, Including Purchased Credit Impaired Loans and Troubled Debt Restructurings

Impaired loans, including TDRs, at December 31, 2019 and 2018 are summarized in the following tables.


	December 31, 2019⁽¹⁾
	Unpaid Contractual Principal Balance		Recorded Investment with No Allowance		Recorded Investment with Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment YTD
Real estate:
Construction and land	$	567	$	—	$	567	$	567	$	128	$	1,793
Farmland	—		—		—		—		—		—
1 - 4 family residential	156		—		156		156		37		158
Multi-family residential	—		—		—		—		—		—
Commercial real estate	21,644		21,040		604		21,644		395		22,529
Commercial	5,188		2,011		3,177		5,188		1,042		8,546
Mortgage warehouse	—		—		—		—		—		—
Consumer	61		61		—		61		—		62
Total	$	27,616	$	23,112	$	4,504	$	27,616	$	1,602	$	33,088

⁽¹⁾Loans reported exclude PCI loans.


	December 31, 2018⁽¹⁾
	Unpaid Contractual Principal Balance		Recorded Investment with No Allowance		Recorded Investment with Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment YTD
Real estate:
Construction and land	$	2,016	$	2,016	$	—	$	2,016	$	—	$	2,262
Farmland	—		—		—		—		—		—
1 - 4 family residential	542		542		—		542		—		565
Multi-family residential	—		—		—		—		—		—
Commercial real estate	2,939		2,939		—		2,939		—		3,032
Commercial	3,228		644		2,584		3,228		368		3,351
Consumer	66		66		—		66		—		79
Total	$	8,791	$	6,207	$	2,584	$	8,791	$	368	$	9,289

(1) Loans reported exclude PCI loans.

Schedule of Terms of Certain Loans That Were Modified as Troubled Debt Restructurings

The terms of certain loans modified as TDRs during the year ended December 31, 2019 and December 31, 2018 are summarized in the following tables:


				During the year ended December 31, 2019
				Post-Modification Outstanding Recorded Investment
	Number of Loans	Pre- Modification Outstanding Recorded Investment		Adjusted Interest Rate		Extended Maturity		Extended Maturity and Restructured Payments		Extended Maturity, Restructured Payments and Adjusted Interest Rate






Commercial	2	$	1,034	—		$	115	$	919	—

Total	2	$	1,034	$	—	$	115	$	919	$	—


				During the year ended December 31, 2018
				Post-Modification Outstanding Recorded Investment
	Number of Loans	Pre- Modification Outstanding Recorded Investment		Adjusted Interest Rate		Extended Maturity		Extended Maturity and Restructured Payments		Extended Maturity, Restructured Payments and Adjusted Interest Rate






Commercial	3	$	628	$	—	$	612	$	—	$	—

Total	3	$	628	$	—	$	612	$	—	$	—

Summary of Internal Ratings of Loans, Including Purchased Credit Impaired Loans

The following tables summarize the Company’s internal ratings of its loans, including PCI loans, as of December 31, 2019 and 2018:


	December 31, 2019
	Pass		Special Mention		Substandard		Doubtful		PCI		Total
Real estate:
Construction and land	$	618,773	$	3,965	$	2,689	$	—	$	3,947	$	629,374
Farmland	16,939		—		—		—		—		16,939
1 - 4 family residential	541,787		795		3,460		—		3,769		549,811
Multi-family residential	320,041		—		—		—		—		320,041
Commercial real estate	2,332,357		23,494		38,278		—		96,854		2,490,983
Commercial	1,610,150		51,999		28,670		—		22,019		1,712,838
Mortgage warehouse	183,628		—		—		—		—		183,628
Consumer	17,106		40		182		—		129		17,457
Total	$	5,640,781	$	80,293	$	73,279	$	—	$	126,718	$	5,921,071


	December 31, 2018
	Pass		Special Mention		Substandard		Doubtful		PCI		Total
Real estate:
Construction and land	$	320,987	$	1,860	$	2,016	$	—	$	—	$	324,863
Farmland	10,528		—		—		—		—		10,528
1 - 4 family residential	296,870		236		726		—		85		297,917
Multi-family residential	51,285		—		—		—		—		51,285
Commercial real estate	1,065,982		7,056		12,986		—		17,008		1,103,032
Commercial	720,583		8,900		7,552		—		23,737		760,772
Consumer	6,950		—		162		—		—		7,112
Total	$	2,473,185	$	18,052	$	23,442	$	—	$	40,830	$	2,555,509

Schedule of Recorded Investment in Loans Related to the Balance in the Allowance for Loan Losses on the Basis of Impairment Methodology

An analysis of the allowance for loan losses for the years ended December 31, 2019, 2018 and 2017 is as follows:


	For the		For the		For the
	Year Ended		Year Ended		Year Ended
	December 31, 2019		December 31, 2018		December 31, 2017
Balance at beginning of year	$	19,255	$	12,808	$	8,524
Provision charged to earnings	21,514		6,603		5,114
Charge-offs	(11,320)		(197)		(839)
Recoveries	385		41		9
Net charge-offs	(10,935)		(156)		(830)
Balance at end of year	$	29,834	$	19,255	$	12,808


	December 31, 2019
	Real Estate
	Construction, Land and Farmland		Residential		Commercial Real Estate		Commercial¹		Consumer		Total
Loans individually evaluated for impairment	$	567	$	156	$	21,644	$	5,188	$	61	$	27,616
Loans collectively evaluated for impairment	641,799		865,927		2,372,485		1,869,259		17,267		5,766,737
PCI loans	3,947		3,769		96,854		22,019		129		126,718
Total	$	646,313	$	869,852	$	2,490,983	$	1,896,466	$	17,457	$	5,921,071

¹ Commercial loans collectively evaluated for impairment includes mortgage warehouse.


	December 31, 2018
	Real Estate
	Construction, Land and Farmland		Residential		Commercial Real Estate		Commercial		Consumer		Total
Loans individually evaluated for impairment	$	2,016	$	542	$	2,939	$	3,228	$	66	$	8,791
Loans collectively evaluated for impairment	333,375		348,575		1,083,085		733,807		7,046		2,505,888
PCI loans	—		85		17,008		23,737		—		40,830
Total	$	335,391	$	349,202	$	1,103,032	$	760,772	$	7,112	$	2,555,509

Summary of Activity in the Allowance for Loan Losses By Class of Loans


	December 31, 2019
	Real Estate
	Construction, Land and Farmland		Residential		Commercial Real Estate		Commercial		Consumer		Total
Balance at beginning of year	$	2,244	$	1,975	$	6,463	$	8,554	$	19	$	19,255
Provision (recapture) charged to earnings	1,639		1,458		3,654		14,487		276		21,514
Charge-offs	—		(157)		—		(10,898)		(265)		(11,320)
Recoveries	—		67		—		226		92		385
Net charge-offs	—		(90)		—		(10,672)		(173)		(10,935)
Balance at end of year	$	3,883	$	3,343	$	10,117	$	12,369	$	122	$	29,834

Period-end amount allocated to:
Specific reserves	$	128	$	37	$	395	$	1,042	$	—	$	1,602
PCI reserves	—		—		20		573		—		593
General reserves	3,755		3,306		9,702		10,754		122		27,639
Total	$	3,883	$	3,343	$	10,117	$	12,369	$	122	$	29,834


	December 31, 2018
	Real Estate
	Construction, Land and Farmland		Residential		Commercial Real Estate		Commercial		Consumer		Total
Balance at beginning of year	$	1,315	$	1,473	$	4,410	$	5,588	$	22	$	12,808
Provision (recapture) charged to earnings	929		502		2,053		3,100		19		6,603
Charge-offs	—		—		—		(175)		(22)		(197)
Recoveries	—		—		—		41		—		41
Net charge-offs	—		—		—		(134)		(22)		(156)
Balance at end of year	$	2,244	$	1,975	$	6,463	$	8,554	$	19	$	19,255

Period-end amount allocated to:
Specific reserves:	$	—	$	—	$	—	$	368	$	—	$	368
PCI reserves	—		—		—		1,302		—		1,302
General reserves	2,244		1,975		6,463		6,884		19		17,585
Total	$	2,244	$	1,975	$	6,463	$	8,554	$	19	$	19,255


	December 31, 2017
	Real Estate
	Construction, Land and Farmland		Residential		Commercial Real Estate		Commercial		Consumer		Total
Balance at beginning of year	$	1,415	$	1,116	$	3,003	$	2,955	$	35	$	8,524
(Recapture) provision charged to earnings	(100)		368		1,407		3,452		(13)		5,114
Charge-offs	—		(11)		—		(828)		—		(839)
Recoveries	—		—		—		9		—		9
Net charge-offs	—		(11)		—		(819)		—		(830)
Balance at end of year	$	1,315	$	1,473	$	4,410	$	5,588	$	22	$	12,808

Period-end amount allocated to:
Specific reserves:	$	—	$	—	$	—	$	12	$	—	$	12
PCI reserves	—		—		—		—		—		—
General reserves	1,315		1,473		4,410		5,576		22		12,796
Total	$	1,315	$	1,473	$	4,410	$	5,588	$	22	$	12,808

Schedule of Summary of Changes in Servicing Assets

A summary of the changes in the related servicing assets are as follows:


	Year Ended December 31,
	2019		2018
Balance at beginning of year	$	1,304	$	1,215
Servicing assets acquired through acquisition	2,382		—
Increase from loan sales	1,253		470

Amortization charged as a reduction to income	(1,826)		(381)

Balance at year-end	$	3,113	$	1,304

Cover Page - USD ($) $ in Thousands	12 Months Ended
Cover Page - USD ($) $ in Thousands	Dec. 31, 2019	Feb. 27, 2020	Jun. 30, 2019
Cover page.
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2019
Document Transition Report	false
Entity File Number	001-36682
Entity Registrant Name	Veritex Holdings, Inc.
Entity Incorporation, State or Country Code	TX
Entity Tax Identification Number	27-0973566
Entity Address, Address Line One	8214 Westchester Drive, Suite 800
Entity Address, City or Town	Dallas
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75225
City Area Code	972
Local Phone Number	349 6200
Title of 12(b) Security	Common Stock, par value $0.01
Trading Symbol	VBTX
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 1,355,252
Entity Common Stock, Shares Outstanding		50,497,070
Documents Incorporated by Reference	Portions of the registrant’s Definitive Proxy Statement relating to the 2020 Annual Meeting of Shareholders are incorporated by reference into Part III of this Annual Report on Form 10-K to the extent stated herein. Such Definitive Proxy Statement will be filed with the Securities and Exchange Commission within 120 days after the end of the registrant’s fiscal year ended December 31, 2019.
Entity Central Index Key	0001501570
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY

Related Party Transactions	12 Months Ended
Related Party Transactions	Dec. 31, 2019
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions In the ordinary course of business, the Company has and expects to continue to have transactions, including borrowings, with its employees, officers, directors and their affiliates. These loans are on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other unaffiliated persons and do not involve more than normal risk of collectability. The aggregate amounts of such loans were approximately $70,113 and $70,220 as of December 31, 2019 and 2018, respectively. During the year ended December 31, 2019, new advances of approximately $42,163 were made to related parties with approximately $42,398 principal payments received. During the year ended December 31, 2018, new advances of approximately $45,801 were made to related parties with approximately $19,715 principal payments received. There were $17,180 and $15,730 in unfunded commitments to related parties as of December 31, 2019 and 2018, respectively. At December 31, 2019, there were no loans to employees, officers, directors or their affiliates that were considered non-performing or potentially problem loans. Deposits received from related parties as of December 31, 2019 and 2018 totaled approximately $70,986 and $30,977, respectively. As disclosed in Note 14, Borrowed Funds, the Company issued $5,000 in subordinated notes to certain entities controlled by an affiliate of the Company.

Advances from the Federal Home Loan Bank ("FHLB")

12 Months Ended

Dec. 31, 2019

Advances from the Federal Home Loan Bank (FHLB)

Advances from the Federal Home Loan Bank (“FHLB”)

Advances from the FHLB totaled $677,870 and $28,019 at December 31, 2019 and 2018, respectively. As of December 31, 2019, the advances were collateralized by a blanket floating lien on certain securities and loans, had a weighted average rate of 1.48% and mature on various dates from 2020 to 2035. The Company had the availability to borrow additional funds of approximately $752,663 as of December 31, 2019.

Contractual maturities of FHLB advances at December 31, 2019 were as follows:


2020	$	75,000
2021	25,000
2022	27,870
2023	—
2024	200,000
Thereafter	350,000
Total	$	677,870

Related Party Transactions (Details) - USD ($)	12 Months Ended
Related Party Transactions (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Related Party Transactions [Abstract]
Aggregate amounts of loans to the Company's employees, officers, directors and their affiliates	$ 70,113,000	$ 70,220,000
New advances to the Company's employees, officers, directors and their affiliates	42,163,000	45,801,000
Principal payments received from the loans to employees, officers, directors, and their affiliates	42,398,000	19,715,000
Unfunded commitments to related parties	17,180,000	15,730,000
Deposits received from related parties	70,986,000	$ 30,977,000
Face amount of subordinated notes issued to related party	$ 5,000,000

Stock and Incentive Plans - Stock Compensation Expense and Liability Award Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Omnibus Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ 3,044	$ 4,021	$ 1,876
Accelerated compensation cost	$ 5,536
Number of shares authorized (in shares)	1,500,000
Veritex Green Omnibus Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ 1,525
Nonperformance-based stock options \| Omnibus Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Accelerated compensation cost	1,418	$ 5,533
Liability Awards \| Omnibus Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expensed and capitalized amount	1,403
Merger and Acquisition Expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ 10,129

Derivative Financial Instruments - Summary of Interest Rate Swaps Outstanding (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)
Derivative [Line Items]
Notional Amount	$ 899,974
Non-hedging derivatives
Derivative [Line Items]
Notional Amount	624,974
Non-hedging derivatives \| Financial institution counterparty: \| Interest rate swaps
Derivative [Line Items]
Notional Amount	$ 222,394
Maturity	3 years 3 months 18 days
Fair Value	$ (4,632)
Non-hedging derivatives \| Financial institution counterparty: \| Interest rate caps and collars
Derivative [Line Items]
Notional Amount	$ 90,093
Maturity	1 year 6 months
Fair Value	$ 11
Non-hedging derivatives \| Commercial customer counterparty: \| Interest rate swaps
Derivative [Line Items]
Notional Amount	$ 222,394
Maturity	3 years 3 months 18 days
Fair Value	$ 4,309
Non-hedging derivatives \| Commercial customer counterparty: \| Interest rate caps and collars
Derivative [Line Items]
Notional Amount	$ 90,093
Maturity	1 year 6 months
Fair Value	$ (11)
Prime Rate \| Non-hedging derivatives \| Financial institution counterparty: \| Interest rate swaps
Derivative [Line Items]
Floating Rate	0.25%
Prime Rate \| Non-hedging derivatives \| Commercial customer counterparty: \| Interest rate swaps
Derivative [Line Items]
Floating Rate	0.25%
Minimum \| Non-hedging derivatives \| Financial institution counterparty: \| Interest rate swaps
Derivative [Line Items]
Fixed Rate	2.944%
Minimum \| Non-hedging derivatives \| Financial institution counterparty: \| Interest rate caps and collars
Derivative [Line Items]
Fixed Rate	3.00%
Minimum \| Non-hedging derivatives \| Commercial customer counterparty: \| Interest rate swaps
Derivative [Line Items]
Fixed Rate	2.944%
Minimum \| Non-hedging derivatives \| Commercial customer counterparty: \| Interest rate caps and collars
Derivative [Line Items]
Fixed Rate	2.43%
Minimum \| London Interbank Offered Rate (LIBOR) \| Non-hedging derivatives \| Financial institution counterparty: \| Interest rate swaps
Derivative [Line Items]
Floating Rate	0.00%
Minimum \| London Interbank Offered Rate (LIBOR) \| Non-hedging derivatives \| Financial institution counterparty: \| Interest rate caps and collars
Derivative [Line Items]
Floating Rate	0.00%
Minimum \| London Interbank Offered Rate (LIBOR) \| Non-hedging derivatives \| Commercial customer counterparty: \| Interest rate swaps
Derivative [Line Items]
Floating Rate	0.00%
Minimum \| London Interbank Offered Rate (LIBOR) \| Non-hedging derivatives \| Commercial customer counterparty: \| Interest rate caps and collars
Derivative [Line Items]
Floating Rate	0.00%
Maximum \| Non-hedging derivatives \| Financial institution counterparty: \| Interest rate swaps
Derivative [Line Items]
Fixed Rate	8.47%
Maximum \| Non-hedging derivatives \| Financial institution counterparty: \| Interest rate caps and collars
Derivative [Line Items]
Fixed Rate	5.80%
Maximum \| Non-hedging derivatives \| Commercial customer counterparty: \| Interest rate swaps
Derivative [Line Items]
Fixed Rate	8.47%
Maximum \| Non-hedging derivatives \| Commercial customer counterparty: \| Interest rate caps and collars
Derivative [Line Items]
Fixed Rate	5.80%
Maximum \| London Interbank Offered Rate (LIBOR) \| Non-hedging derivatives \| Financial institution counterparty: \| Interest rate swaps
Derivative [Line Items]
Floating Rate	5.00%
Maximum \| London Interbank Offered Rate (LIBOR) \| Non-hedging derivatives \| Financial institution counterparty: \| Interest rate caps and collars
Derivative [Line Items]
Floating Rate	3.75%
Maximum \| London Interbank Offered Rate (LIBOR) \| Non-hedging derivatives \| Commercial customer counterparty: \| Interest rate swaps
Derivative [Line Items]
Floating Rate	5.00%
Maximum \| London Interbank Offered Rate (LIBOR) \| Non-hedging derivatives \| Commercial customer counterparty: \| Interest rate caps and collars
Derivative [Line Items]
Floating Rate	3.75%

Securities - Unrealized Loss Position (Details) $ in Thousands	Dec. 31, 2019 USD ($) investment	Dec. 31, 2018 USD ($) investment
Available-for-sale Securities, Continuous Unrealized Loss Position, Qualitative Disclosure [Abstract]
Less than 12 months, fair value	$ 139,100	$ 71,445
Less than 12 months unrealized loss	1,763	644
12 months or more fair value	0	115,907
12 months or more unrealized loss	0	3,457
Fair value, totals	139,100	187,352
Unrealized loss, totals	$ 1,763	$ 4,101
Number of investment positions in an unrealized loss position \| investment	11	142
U.S. government agencies
Available-for-sale Securities, Continuous Unrealized Loss Position, Qualitative Disclosure [Abstract]
Less than 12 months, fair value		$ 5,671
Less than 12 months unrealized loss		68
12 months or more fair value		3,306
12 months or more unrealized loss		50
Fair value, totals		8,977
Unrealized loss, totals		118
Corporate bonds
Available-for-sale Securities, Continuous Unrealized Loss Position, Qualitative Disclosure [Abstract]
Less than 12 months, fair value		6,689
Less than 12 months unrealized loss		134
12 months or more fair value		0
12 months or more unrealized loss		0
Fair value, totals		6,689
Unrealized loss, totals		134
Municipal securities
Available-for-sale Securities, Continuous Unrealized Loss Position, Qualitative Disclosure [Abstract]
Less than 12 months, fair value	$ 468	16,043
Less than 12 months unrealized loss	1	92
12 months or more fair value	0	10,428
12 months or more unrealized loss	0	246
Fair value, totals	468	26,471
Unrealized loss, totals	1	338
Mortgage-backed securities
Available-for-sale Securities, Continuous Unrealized Loss Position, Qualitative Disclosure [Abstract]
Less than 12 months, fair value	28,883	24,277
Less than 12 months unrealized loss	370	279
12 months or more fair value	0	59,637
12 months or more unrealized loss	0	1,888
Fair value, totals	28,883	83,914
Unrealized loss, totals	370	2,167
Collateralized mortgage obligations
Available-for-sale Securities, Continuous Unrealized Loss Position, Qualitative Disclosure [Abstract]
Less than 12 months, fair value	109,749	18,765
Less than 12 months unrealized loss	1,392	71
12 months or more fair value	0	42,536
12 months or more unrealized loss	0	1,273
Fair value, totals	109,749	61,301
Unrealized loss, totals	$ 1,392	$ 1,344

Deposits - Scheduled Maturities of Certificates of Deposit (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Banking and Thrift [Abstract]
2020	$ 1,321,767
2021	288,902
2022	41,955
2023	16,558
2024	13,696
Total	$ 1,682,878	$ 682,984

Business Combinations - Consideration Transferred (Details) - Green Bancorp, Inc. - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Jan. 01, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Business Acquisition [Line Items]
Stock issued for acquisition of bank, net of offering cost (in shares)	29,532,957
Veritex common stock price per share as of close date (in dollars per share)	$ 21.38
Market value of common stock issued	$ 631,415	$ 631,415	$ 0	$ 0
Fair value of Green equity-based awards attributed to pre-combination service	12,484
Cash paid	10
Total fair value of consideration	$ 643,909

Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Financial instruments with off-balance sheet risk
Total commitments	$ 1,977,546	$ 967,867
Commitments to extend credit
Financial instruments with off-balance sheet risk
Total commitments	1,950,350	962,436
Standby and commercial letters of credit
Financial instruments with off-balance sheet risk
Total commitments	$ 27,196	$ 5,431

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Held to maturity investments	$ 34,810
Accumulated amortization	$ 19,997	$ 7,528
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	75,000,000	75,000,000
Common stock, shares issued (in shares)	54,876,580	24,263,894
Common stock, shares outstanding (in shares)	51,063,869	24,253,894
Treasury stock, shares (in shares)	3,812,711	10,000

Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Thousands	1 Months Ended
	May 31, 2019	Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount		$ 899,974
Interest rate floor
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount	$ 275,000
Term of contract	2 years
Floor interest rate	2.43%
Derivative, purchase option price	$ 2,665

Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Offering costs	$ 788		$ 288
Sovereign Bancshares, Inc.
Offering costs			438
Liberty Bancshares, Inc.
Offering costs			$ 334
Restricted stock units
Shares withheld to cover tax withholdings (in shares)	55,946	20,082	11,601
Restricted stock units \| Green Bancorp, Inc.
Shares withheld to cover tax withholdings (in shares)	25,872,000
Employee Stock Option
Shares withheld to cover tax withholdings (in shares)	13,709	1,691	1,095
Shares paid for cashless exercise (in shares)		4,391

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Estimated Lives of the Respective Assets

Buildings and improvements, furniture and equipment are carried at cost less accumulated depreciation computed using the straight-line method over the estimated useful lives of the respective assets as follows:


Buildings and improvements			10 - 40 years
Site improvements			15 years
Tenant improvements			Lease term
Leasehold improvements			Lease term
Furniture and equipment			3 - 10 years

Schedule of Intangible Assets


Core deposit intangible			7 - 10 years
In-place lease intangible			Lease term

Intangible assets in the accompanying consolidated balance sheets are summarized as follows:


	December 31, 2019
	Weighted	Gross				Net
	Amortization	Intangible		Accumulated		Intangible
	Period	Asset		Amortization		Asset
Core deposit intangibles	7.0 years	$	81,769	$	14,206	$	67,563
Servicing asset	6.7 years	5,726		2,613		3,113
Intangible lease assets	1.4 years	4,765		3,178		1,587
		$	92,260	$	19,997	$	72,263


	December 31, 2018
	Weighted	Gross				Net
	Amortization	Intangible		Accumulated		Intangible
	Period	Asset		Amortization		Asset
Core deposit intangibles	7.7 years	$	16,051	$	4,376	$	11,675
Servicing asset	6.8 years	2,091		787		1,304
Intangible lease assets	2.7 years	5,282		2,365		2,917
		$	23,424	$	7,528	$	15,896

Schedule of Reconciliation Between Weighted Average Shares Used for Calculating Basic and Diluted EPS

The table below sets forth the reconciliation between weighted average shares used for calculating basic and diluted EPS for the years ended December 31, 2019, 2018 and 2017.


	Year Ended December 31,
	2019		2018		2017
Earnings (numerator)
Net income	$	90,739	$	39,341	$	15,152
Less: preferred stock dividends	—		—		42
Net income allocated to common stockholders	$	90,739	$	39,341	$	15,110
Shares (denominator)
Weighted average shares outstanding for basic EPS (thousands)	53,154		24,169		18,404
Dilutive effect of employee stock-based awards	824		421		406
Adjusted weighted average shares outstanding	53,978		24,590		18,810
Earnings per share:
Basic	$	1.71	$	1.63	$	0.82
Diluted	$	1.68	$	1.60	$	0.80

Fair Value Disclosures

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures

The authoritative guidance for fair value measurements defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact.

The authoritative guidance requires the use of valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement costs). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. In that regard, the authoritative guidance establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:

Level 1 Inputs. Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

Level 2 Inputs. Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (for example, interest rates, volatilities, prepayment speeds, loss severities, credit risks and default rates) or inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 2 investments consist primarily of obligations of U.S. government agencies, corporate bonds, municipal securities, mortgage-backed securities, collateralized mortgage obligations and asset-backed securities.

Level 3 Inputs. Significant unobservable inputs that reflect an entity’s own assumptions that market participants would use in pricing the assets or liabilities.

In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.

A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below.

Assets and liabilities measured at fair value on a recurring basis include the following:

Available for Sale Securities: Securities classified as available for sale are reported at fair value utilizing Level 2 inputs. For those securities classified as Level 2, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U. S. Treasury yield curve, live trading levels, trade execution data for similar securities, market consensus prepayments speeds, credit information and the bond’s terms and conditions, among other things.

Equity Security With a Readily Determinable Fair Value: this investment represents our Community Reinvestment Act security which is reported at fair value utilizing a Level 1 input which includes a quoted price in an active market for the identical asset.

Loans Held for Sale: The fair value of government guaranteed and commercial loans held-for-sale is based on commitments from investors or prevailing market prices.

Derivative Financial Instruments: The fair value of correspondent interest rate swaps, customer interest rate swaps, correspondent interest rate caps and collars and commercial loan interest rate floors are derived from pricing models based on past, present and projected future market conditions, quoted market prices of instruments with similar characteristics or discounted cash flows, classified in Level 2 of the fair value hierarchy.


	December 31, 2019
	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
Financial Assets:
Available for sale securities	$	—	$	964,365	$	—	$	964,365
Equity securities with a readily determinable fair value	11,122		—		—		11,122
Loans held for sale ⁽¹⁾	—		10,068		—		10,068
Correspondent interest rate swaps	—		105		—		105
Customer interest rate swaps	—		4,393		—		4,393
Correspondent interest rate caps and collars	—		11		—		11
Commercial loan interest rate floor	—		3,353		—		3,353
Financial Liabilities:
Correspondent interest rate swaps	—		4,736		—		4,736
Customer interest rate swaps	—		84		—		84
Customer interest rate caps and collars	—		11		—		11

⁽¹⁾ Represents loans held for sale elected to be carried at fair value upon origination or acquisition.


	December 31, 2018
	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
Financial Assets:
Available for sale securities	$	—	$	262,695	$	—	$	262,695

There were no liabilities measured at fair value on a recurring basis as of December 31, 2018.

There were no transfers between Level 2 and Level 3 during the years ended December 31, 2019 and 2018.

Certain assets and liabilities are measured at fair value on a non-recurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment).

Assets measured at fair value on a non-recurring basis include impaired loans and other real estate owned. Impaired loans and other real estate owned that are collateral dependent are measured for impairment using the fair value of the collateral adjusted by additional Level 3 inputs, such as estimated costs to sell. Impaired loans and other real estate owned secured by real estate, receivables or inventory had discounts determined by management on an individual loan basis. Impaired loans and other real estate owned that are not collateral dependent are measured for impairment by a discounted cash flow analysis using a net present value calculation that utilizes data from the loan file. As such, the fair value of impaired loans and other real estate owned are considered a Level 3 in the fair value hierarchy.

Appraisals for impaired loans and other real estate owned are performed by certified general appraisers whose qualifications and licenses have been reviewed and verified by the Company. Once reviewed, a member of the credit department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparisons to independent data sources such as recent market data or industry wide-statistics. On a periodic basis, the Company compares the actual selling price of collateral that has been sold to the most recent appraised value to determine what additional adjustments, if any, should be made to the appraisal value to arrive at fair value.

The Company records other real estate owned at fair value less estimated costs to sell at the date of foreclosure. After foreclosure, other real estate owned is carried at the lower of the initial carrying amount (fair value less estimated costs to sell or lease) and the value determined by subsequent appraisals or internal valuations of the other real estate owned.


	Fair Value
	Measurements Using
	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
As of December 31, 2019
Assets:
Impaired loans	$	—	$	—	$	4,504	$	4,504
Other real estate owned	$	—	$	—	$	5,995	$	5,995
As of December 31, 2018
Assets:
Impaired loans	$	—	$	—	$	2,584	$	2,584

At December 31, 2019, impaired loans with an allowance had a recorded investment of $4,504, with $1,602 specific allowance for loan loss allocated. At December 31, 2018, impaired loans with an allowance had a recorded investment of $2,584, with $368 specific allowance for loan loss allocated.

There were no liabilities measured at fair value on a non-recurring basis as of December 31, 2019 and 2018.

Fair Value of Financial Instruments

The Company is required under current authoritative guidance to disclose the estimated fair value of its financial instrument assets and liabilities, including those subject to the requirements discussed above. For the Company, as for most financial institutions, substantially all of its assets and liabilities are considered financial instruments, as defined in such guidance. Many of the Company’s financial instruments, however, lack an available trading market as characterized by a willing buyer and willing seller engaging in an exchange transaction.

The estimated fair value amounts of financial instruments have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret data to develop an estimate of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange. The use of different market assumptions and/or valuation methodologies may have a material effect on the estimated fair value amounts. In addition, reasonable comparability between financial institutions may not be likely due to the wide range of permitted valuation techniques and numerous estimates that must be made given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies also introduces a greater degree of subjectivity to these estimated fair values.

The methods and assumptions used by the Company in estimating fair values of financial instruments as disclosed herein in accordance with ASC Topic 825, Financial Instruments, other than for those measured at fair value on a recurring and nonrecurring basis discussed above, are as follows:

Cash and cash equivalents: The carrying amount of cash and cash equivalents approximates their fair value.

Held-to-maturity investments: The fair values of these securities is determined by matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities' relationship to other benchmark quoted securities (Level 2 inputs).

Loans held for investment and loans held for sale: The fair value of loans held for investment, excluding previously presented impaired loans measured at fair value on a non-recurring basis, is estimated using a discounted cash flow analysis. The discount rates used to determine fair value use interest rate spreads that reflect factors such as liquidity, credit, and prepayment risk of the loans. Loans are considered a Level 3 financial asset. Loans held for sale approximate their carrying value and are considered Level 2 financial assets.

Accrued interest receivable: The carrying amounts of accrued interest approximate their fair values due to short-term maturity.

Bank-owned life insurance: The carrying amounts of bank-owned life insurance policies approximate their fair value.

Servicing Asset: The estimated fair value of the servicing assets approximated the carrying amount at December 31, 2019 and December 31, 2018. Fair value is estimated by discounting estimated future cash flows from the servicing assets using discount rates that approximate current market rates over the expected lives of the loans being serviced. A valuation allowance is recorded when the fair value is below the carrying amount of the asset. At December 31, 2019 and December 31, 2018, no valuation allowance was recorded.

Equity securities without a readily determinable fair value: Certain equity securities are carried at cost as these securities did not have a readily determinable fair value. There were no observable price changes in orderly transactions for the identical or a similar investment of the same issuer as of December 31, 2019 and 2018.

Federal Home Loan Bank and Federal Reserve Bank stock: FHLB and FRB stock are carried at cost basis due to restrictions placed on the transferability of these investments. As a result, the fair value of these investments was not practicable to determine.

Deposits: The fair values disclosed for demand deposits are, by definition, equal to the amount payable on demand at the reporting date (that is, their carrying amounts). The carrying amounts of variable-rate certificates of deposit (“CDs”) approximate their fair values at the reporting date. Fair values for fixed-rate CDs are estimated using a discounted cash flow calculation that applies interest rates currently being offered on CDs to a schedule of aggregated expected monthly maturities on time deposits.

Advances from Federal Home Loan Bank: The fair value of advances maturing within 90 days approximates carrying value. Fair value of other advances is based on the Company’s current borrowing rate for similar arrangements.

Subordinated debentures and subordinated notes: The fair values are based upon prevailing rates on similar debt in the marketplace.

Securities sold under agreement to repurchase: The carrying amount of securities sold under agreements to repurchase is a reasonable estimate of fair value because these borrowings reprice at market rates generally daily.

Off-balance sheet instruments: Commitments to extend credit and standby letters of credit are generally priced at market at the time of funding and were not material to the Company’s consolidated financial statements.

The estimated fair values and carrying values of financial instruments not measured at fair value on a recurring basis as of December 31, 2019 and 2018 were as follows:


			Fair Value
	Carrying
	Amount		Level 1		Level 2		Level 3
December 31, 2019
Financial assets:
Cash and cash equivalents	$	251,550	$	—	$	251,550	$	—
Held to maturity investments	32,965		—		34,810		—
Loans held for sale	14,080		—		14,080		—
Loans held for investment, mortgage warehouse	183,628		—		—		185,060
Loans held for investment	5,737,577		—		—		5,714,885
Accrued interest receivable	19,508		—		19,508		—
Bank-owned life insurance	80,915		—		80,915		—
Servicing asset	3,113		—		3,113		—
Equity securities without a readily determinable fair value	3,575		N/A		N/A		N/A
Federal Home Loan Bank and Federal Reserve Bank stock	68,348		N/A		N/A		N/A
Financial liabilities:
Deposits	$	5,894,350	$	—	$	5,692,217	$	—
Advances from FHLB	677,870		—		708,692		—
Accrued interest payable	5,893		—		5,893		—
Subordinated debentures and subordinated notes	145,571		—		145,571		—
Securities sold under agreement to repurchase	2,353		—		2,353		—

December 31, 2018
Financial assets:
Cash and cash equivalents	$	84,449	$	—	$	84,449	$	—
Loans held for sale	1,258		—		1,258		—
Loans held for investment	2,555,494		—		—		2,553,376
Accrued interest receivable	8,828		—		8,828		—
Bank-owned life insurance	22,064		—		22,064		—
Servicing asset	834		—		834		—
Equity securities without readily determinable fair value	2,050		N/A		N/A		N/A
Federal Home Loan Bank and Federal Reserve Bank stock	15,281		N/A		N/A		N/A

Financial liabilities:
Deposits	$	2,622,428	$	—	$	2,506,379	$	—
Advances from FHLB	28,019		—		28,063		—
Accrued interest payable	1,135		—		1,135		—
Subordinated debentures and subordinated notes	16,691		—		16,691		—

Goodwill and Intangible Assets Disclosure [Abstract]

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Business Combinations

12 Months Ended

Dec. 31, 2019

Business Combinations [Abstract]

Business Combinations

Green Bancorp, Inc.

On January 1, 2019, the Company completed its acquisition of Green. The business combination was accounted for under the acquisition method of accounting. Under this method of accounting, assets acquired and liabilities assumed are recorded at their estimated fair values. The excess cost over fair value of net assets acquired is recorded as goodwill. As the consideration paid for Green exceeded the provisional value of the net assets acquired, goodwill of $209,393 related to the acquisition was recorded. This goodwill resulted from the combination of expected operational synergies and increased market share in the Dallas-Fort Worth metroplex and Houston metropolitan area. Goodwill is not tax deductible.

Consideration

Under the terms of the definitive agreement for the acquisition, each outstanding share of Green common stock and Green’s outstanding restricted stock units that accelerated vesting at maximum levels at the close date was converted into the right to receive 0.79 shares of the Company’s common stock, with cash paid in lieu of fractional shares. In addition, Green’s options that accelerated vesting at maximum levels on the close date were exchanged for an option to purchase Veritex common stock at the same 0.79 conversion rate. The Company issued 497,594 shares of Veritex common stock to Green’s fully vested restricted stock units. In addition, the Company was obligated to replace Green’s unvested options with 1,085,256 fully vested Veritex options. The following table presents the fair value of each class of consideration transferred at the close date.


Equivalent shares of Veritex common stock issued in exchange for Green outstanding shares	29,532,957
Veritex common stock price per share as of close date	$	21.38
Fair value of Veritex common stock issued in exchange for Green outstanding shares	$	631,415
Fair value of Green equity-based awards attributed to pre-combination service	12,484
Cash consideration to Green shareholders	10
Total consideration transferred	$	643,909

Fair Value

The following table presents the amounts recorded on the consolidated balance sheets on the acquisition date of January 1, 2019, showing the estimated fair value as reported at January 1, 2019, the measurement period adjustments and the fair value determined to be final as of December 31, 2019.


	Estimate at January 1, 2019		Measurement Period Adjustments		Final Fair Value
Assets
Cash and cash equivalents	$	112,720	$	—	$	112,720
Investment securities	661,032		(240)		660,792
Equity securities	12,322		—		12,322
Federal Home Loan Bank and Federal Reserve Bank stock	29,490		—		29,490
Loans held for sale	9,360		—		9,360
Loans held for investment	3,245,492		(244)		3,245,248
Accrued interest receivable¹	11,673		(278)		11,395
Bank owned life insurance	56,841		—		56,841
Bank premises, furniture and equipment	39,426		(2,571)		36,855
Investment in trusts	666		—		666

Intangible assets, net	65,718		—		65,718
Goodwill	206,821		2,572		209,393
Other assets	10,720		404		11,124
Right of use asset¹	9,373		—		9,373
Deferred taxes¹	11,535		248		11,783
Current taxes¹	1,799		13		1,812
Branch assets held for sale	85,307		—		85,307
Total assets	$	4,570,295	$	(96)	$	4,570,199
Liabilities
Non-interest-bearing deposits	$	825,364	$	—	$	825,364
Interest-bearing deposits	1,300,825		—		1,300,825
Certificates and other time deposits	1,346,915		—		1,346,915
Accounts payable and other accrued expenses	26,587		(96)		26,491
Lease liability²	9,373		—		9,373
Accrued interest payable	5,181		—		5,181
Securities sold under agreements to repurchase	3,226		—		3,226
Advances from Federal Home Loan Bank	300,000		—		300,000
Subordinated debentures and subordinated notes	56,233		—		56,233
Branch liabilities held for sale	52,682		—		52,682
Total liabilities	$	3,926,386	$	(96)	$	3,926,290

¹ Accrued interest receivable, right of use asset, deferred taxes and current taxes are included in "Other assets" in our consolidated balance sheets for the year ended December 31, 2019.

² Lease liability is included in "Accounts payable and other accrued expenses" in our consolidated balance sheets for the year ended December 31, 2019.

Acquisition-related Expenses

For the year ended December 31, 2019 and 2018, the Company incurred $38,960 and $4,865 of pre-tax merger and acquisition expenses, respectively, related to the Green acquisition. The amounts incurred during the year ended December 31, 2019 primarily consist of stock-based compensation due to the accelerated vesting of outstanding restricted stock units and stock options of $17,082, severance and retention payments of $9,491, legal and professional fees of $5,297 and data processing expenses of $1,824 as a result of the core system conversion. Acquisition expenses are included in merger and acquisition expenses on the consolidated statements of income.

Acquired Loans and Purchased Credit Impaired Loans

Acquired loans were recorded at fair value based on a discounted cash flow valuation methodology that considers, among other things, projected default rates, loss given defaults and recovery rates. No allowance for credit losses was carried over from Green.

The Company has identified certain acquired loans as PCI. PCI loan identification considers payment history and past due status, debt service coverage, loan grading, collateral values and other factors that may indicate deterioration of credit quality since origination. Accretion of purchase discounts on PCI loans is based on estimated future cash flows, regardless of contractual maturities, that include undiscounted expected principal and interest payments and use credit risk, interest rate and prepayment risk models to incorporate management’s best estimate of current key assumptions such as default rates, loss severity and payment speeds. Accretion of purchase discounts on acquired non-impaired loans will be recognized on a level-yield basis based on contractual maturity of individual loans per ASC 310-20.

The following table discloses the fair value and contractual value of loans acquired from Green on January 1, 2019:


	PCI loans		Other acquired loans		Total acquired loans
Real estate	$	132,006	$	1,783,938	$	1,915,944
Commercial	50,057		1,099,012		1,149,069
Mortgage warehouse	—		166,850		166,850
Consumer	184		13,201		13,385
Total fair value	182,247		3,063,001		3,245,248
Contractual principal balance	$	242,013	$	3,093,047	$	3,335,060

The following table presents additional information about PCI loans acquired from Green on January 1, 2019:


	PCI loans
Contractually required principal and interest	$	277,773
Non-accretable difference	75,656
Cash flows expected to be collected	$	202,117
Accretable difference	19,870
Fair value of PCI loans	$	182,247

Intangible Assets

The acquisition resulted in a core deposit intangible of $65,718, which will be amortized on a straight line basis over the estimated life of 8 years.

Branch assets and liabilities held for sale

Branch assets and liabilities held for sale as of the close date are valued at fair value less cost to sell. The following table discloses the fair value information about branch assets and liabilities that met the definition of held for sale on January 1, 2019:


	January 1, 2019
Assets
Cash and cash equivalents	$	392
Loans	78,366
Bank premises, furniture and equipment	19
Intangible assets	6,013
Other assets	517
Total assets	$	85,307
Liabilities
Noninterest-bearing deposits	$	52,319
Accounts payable and accrued expenses	40
Accrued interest payable and other liabilities⁽¹⁾	323
Total liabilities	$	52,682

⁽¹⁾Accrued interest payable and other liabilities includes $90 in expected selling costs.

Certificates and other time deposits

The Green acquisition resulted in a premium on time deposits of $7,318, which will be accreted on a straight line basis over the contractual lives of certificates and other time deposits, or an estimated weighted average life of 1.7 years.

Subordinated debt and subordinated debentures

The Green acquisition resulted in a premium on subordinated debt of $3,134 and a discount on subordinated debentures of $4,066, which will be accreted/amortized on a straight line basis over the estimated life of 2 years and 17.5 years, respectively.

Investment Securities

Acquired investment securities includes $634,449 of available for sale securities and $26,343 of held to maturity securities recorded at fair value.

Supplemental Pro Forma Information (unaudited)

The following table presents supplemental pro forma information for the years ended December 31, 2018 and 2017 as if the Green acquisition was completed as of January 1, 2017. The pro forma results combine the historical results of Green, and historical results of previous acquisitions, into the Company's condensed consolidated statements of income, including the impact of certain purchase accounting adjustments, including loan and investment discount accretion and intangible assets amortization. The pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results that would have been obtained had the acquisition actually occurred on January 1, 2017:


	Year Ended December 31,
	2018		2017
Net interest income	$	274,031	$	254,350
Net income	108,490		38,352

Basic earnings per share	$	2.00	$	0.71
Diluted earnings per share	1.97		0.70

Intangible Assets

12 Months Ended

Dec. 31, 2019

Intangible Assets

Intangible assets in the accompanying consolidated balance sheets are summarized as follows:


	December 31, 2019
	Weighted	Gross				Net
	Amortization	Intangible		Accumulated		Intangible
	Period	Asset		Amortization		Asset
Core deposit intangibles	7.0 years	$	81,769	$	14,206	$	67,563
Servicing asset	6.7 years	5,726		2,613		3,113
Intangible lease assets	1.4 years	4,765		3,178		1,587
		$	92,260	$	19,997	$	72,263


	December 31, 2018
	Weighted	Gross				Net
	Amortization	Intangible		Accumulated		Intangible
	Period	Asset		Amortization		Asset
Core deposit intangibles	7.7 years	$	16,051	$	4,376	$	11,675
Servicing asset	6.8 years	2,091		787		1,304
Intangible lease assets	2.7 years	5,282		2,365		2,917
		$	23,424	$	7,528	$	15,896

For the years ended December 31, 2019, 2018 and 2017, amortization expense related to intangible assets of approximately $12,022, $4,060 and $1,270, respectively, is included within amortization of intangibles, occupancy and equipment and other income within the consolidated statements of income. The estimated aggregate future amortization expense for intangible assets remaining as of December 31, 2019 was as follows:


Year	Amount
2020	$	11,136
2021	10,631
2022	10,445
2023	10,307
2024	10,217
Thereafter	19,527
	$	72,263

Financial Instruments with Off-Balance Sheet Risk

12 Months Ended

Dec. 31, 2019

Financial Instruments with Off-Balance Sheet Risk

The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets.

The Company’s exposure to credit loss in the event of nonperformance by the other party to a financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments.

The following table sets forth the approximate amounts of these financial instruments as of December 31, 2019 and 2018:


	December 31,
	2019		2018
Commitments to extend credit	$	1,950,350	$	962,436
Standby and commercial letters of credit	27,196		5,431
	$	1,977,546	$	967,867

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Management evaluates each customer’s creditworthiness on a case-by-case basis and substantially all of the Company’s commitments to extend credit are contingent upon customers maintaining specific credit standards at the time of future loan funding. The amount of collateral obtained, if deemed necessary upon extension of credit, is based on management’s credit evaluation of the borrower.

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Standby letters of credit generally have fixed expiration dates or other termination clauses and may require payment of a fee. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company’s policy for obtaining collateral and the nature of such collateral is essentially the same as that involved in making commitments to extend credit.

Although the maximum exposure to loss is the amount of such commitments, management currently anticipates no material losses from such activities.

Stock and Incentive Plans - Green Bancorp Inc. 2010 Option Plan (Details)	12 Months Ended
	Dec. 31, 2019 plan shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock and incentive plans assumed in acquisition \| plan	2
Green Bancorp Inc. 2010 Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Converted in acquisition of Green (in shares)	768,628
Number of shares awarded under stock options (in shares)	0
Exercise of employee stock options (in shares)	190,652
Options, outstanding, number (in shares)	566,936
Green Bancorp Inc. 2006 Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Converted in acquisition of Green (in shares)	11,850
Number of shares awarded under stock options (in shares)	0
Exercise of employee stock options (in shares)	11,850
Options, outstanding, number (in shares)	0
Restricted stock units \| Green Bancorp Inc. 2010 Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares awarded under stock options (in shares)	0
Restricted stock units \| Green Bancorp Inc. 2006 Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares awarded under stock options (in shares)	0

Leases

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases

Operating leases in which the Company is the lessee are recorded as operating lease ROU assets and operating lease liabilities, included in other assets and accounts payable and accrued expenses, respectively, on the Company’s condensed consolidated balance sheets. The Company does not currently have finance leases in which it is the lessee.

Operating lease ROU assets represent the Company’s right to use an underlying asset during the lease term and operating liabilities represent its obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents the Company’s incremental borrowing rate at the lease commencement date. ROU assets are further adjusted for lease incentives. Operating lease expense, which is comprised of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded in net occupancy expense in the condensed consolidated statements of income and other comprehensive income.

The Company’s leases related primarily to office space and bank branches with remaining lease terms generally ranging from one to eight years. Certain lease arrangements contain extension options which typically range from five to 10 years at the then fair market rental rates. As these extension options are not generally considered reasonably certain of exercise, they are not included in the lease term. As of December 31, 2019, operating lease ROU assets and liabilities were $13,205 and $14,095, respectively, and is recorded in other assets and accounts payable and accrued expenses, respectively, in the consolidated balance sheets.

The table below summarizes the Company’s net lease cost:


	For the Year Ended December 31,
	2019
Operating lease cost	$	4,999

Variable lease cost	988
Net lease cost	$	5,987

The table below summarizes other information related to the Company’s operating leases:


	For the Year Ended December 31,
	2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,325
Weighted-average remaining lease term - operating leases, in years	4.4 years
Weighted-average discount rate - operating leases	1.59		%

A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liability is as follows:


	December 31, 2019
Lease payments due:
Within one year	$	3,465
After one but within two years	3,063
After two but within three years	2,589
After three but within four years	2,388
After four but within five years	1,937
After five years	2,146
Total undiscounted cash flows	15,588
Less: Discount on cash flows	(1,493)
Total lease liability	$	14,095

There were no sale and leaseback transactions, leveraged leases or lease transactions with related parties during the year ended December 31, 2019. As of December 31, 2019, the Company did not have additional operating leases for office space that were anticipated to commence during the first quarter of 2020.

Borrowed Funds

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Borrowed Funds

Borrowed funds in the accompanying consolidated balance sheets are as follows:


	December 31,
	2019		2018
Junior subordinated debentures ⁽¹⁾	$	30,023	$	11,702
Subordinated notes ⁽²⁾	115,548		4,989
	$	145,571	$	16,691

⁽¹⁾ Junior subordinated debentures are net of a discount of $3,845 as of December 31, 2019. There was no discount as of December 31, 2018.

⁽²⁾ Subordinated notes include a premium of $2,081 and debt issuance costs of $1,533 as of December 31, 2019 and a discount of $11 as of December 31, 2018.

Junior Subordinated Debentures

In connection with a previous acquisition, the Company assumed $3,093 in fixed to floating rate junior subordinated debentures underlying common securities and preferred capital securities (the “Parkway Trust Securities”), issued by Parkway National Capital Trust I (“Parkway Trust”), a statutory business trust and acquired wholly owned subsidiary of the Company. The Company became a guarantor and, as such, unconditionally guaranteed payment of accrued and unpaid distributions required to be paid on the Parkway Trust Securities subject to certain exceptions, the redemption price when a capital security is called for redemption and amounts due if Parkway Trust is liquidated or terminated.

The Company owns all of the outstanding common securities of the Parkway Trust. The Parkway Trust used the proceeds from the issuance of the Parkway Trust Securities to buy the debentures originally issued by Fidelity Resource Company. These debentures are the Parkway Trust’s only assets and the interest payments from the debentures finance the distributions paid on the Parkway Trust Securities.

The Parkway Trust Securities pay cumulative cash distributions quarterly at a rate per annum equal to the 3-month LIBOR plus 1.85%. So long as no event of default leading to an acceleration event has occurred, the Company has the right at any time and from time to time during the term of the debentures to defer payments of interest by extending the interest distribution period for up to twenty consecutive quarterly periods. The effective rate as of December 31, 2019 and 2018 was 3.74% and 4.64%, respectively. The Parkway Trust Securities are subject to mandatory redemption, in whole or in part, upon repayment of the debentures at the stated maturity in the year 2036 or their earlier redemption, in each case at a redemption price equal to the aggregate liquidation preference of the Parkway Trust Securities plus any accumulated and unpaid distributions thereon to the date of redemption. Prior redemption is permitted under certain circumstances.

In connection with the acquisition of Sovereign on August 1, 2017, the Company assumed $8,609 in floating rate junior subordinated debentures underlying common securities and preferred capital securities (the “SovDallas Trust Securities”), issued by SovDallas Capital Trust I (“SovDallas Trust”), a statutory business trust and wholly-owned subsidiary of the Company. The Company became a guarantor and, as such, unconditionally guaranteed payment of accrued and unpaid distributions required to be paid on the SovDallas Trust Securities subject to certain exceptions, the redemption price when a capital security is called for redemption and amounts due if SovDallas Trust is liquidated or terminated. The Company also owns all of the outstanding common securities of the SovDallas Trust.

The SovDallas Trust invested the total proceeds from the sale of the SovDallas Trust Securities and the investment in common shares in floating rate junior subordinated debentures originally issued by Sovereign. Interest on the SovDallas Trust Securities is payable quarterly at a rate equal to 3-month LIBOR plus 4.00%. Principal payments are due at maturity in July 2038. The effective rate as of December 31, 2019 and 2018 was 6.10% and 6.40%. The SovDallas Trust Securities are guaranteed by the Company and are subject to redemption. The Company may redeem the debt securities, in whole or in part, at any time at an amount equal to the principal amount of the debt securities being redeemed plus any accrued and unpaid interest.

In connection with the acquisition of Green on January 1, 2019, the Company assumed $5,155 in floating rate junior subordinated debentures underlying common securities and preferred capital securities (the “Patriot I Trust Securities”), issued by Patriot I Capital Trust I (“Patriot I Trust”), a statutory business trust and wholly-owned subsidiary of the Company. The Company became a guarantor and, as such, unconditionally guaranteed payment of accrued and unpaid distributions required to be paid on the Patriot I Trust Securities subject to certain exceptions, the redemption price when a capital security is called for redemption and amounts due if Patriot I Trust is liquidated or terminated. The Company also owns all of the outstanding common securities of the Patriot I Trust.

The Patriot I Trust invested the total proceeds from the sale of the Patriot I Trust Securities and the investment in common shares in floating rate junior subordinated debentures originally issued by Green. Interest on the Patriot I Trust Securities is payable quarterly at a rate equal to 3-month LIBOR plus 1.85%. Principal payments are due at maturity in April 2036. The effective rate as of December 31, 2019 was 3.84%. The Patriot I Trust Securities are guaranteed by the Company and are subject to redemption. The Company may redeem the debt securities, in whole or in part, at any time at an amount equal to the principal amount of the debt securities being redeemed plus any accrued and unpaid interest.

In connection with the acquisition of Green on January 1, 2019, the Company assumed $17,011 in floating rate junior subordinated debentures underlying common securities and preferred capital securities (the “Patriot II Trust Securities”), issued by Patriot II Capital Trust I (“Patriot II Trust”), a statutory business trust and wholly-owned subsidiary of the Company. The Company became a guarantor and, as such, unconditionally guaranteed payment of accrued and unpaid distributions required to be paid on the Patriot II Trust Securities subject to certain exceptions, the redemption price when a capital security is called for redemption and amounts due if Patriot II Trust is liquidated or terminated. The Company also owns all of the outstanding common securities of the Patriot II Trust.

The Patriot II Trust invested the total proceeds from the sale of the Patriot II Trust Securities and the investment in common shares in floating rate junior subordinated debentures originally issued by Sovereign. Interest on the Patriot II Trust Securities is payable quarterly at a rate equal to 3-month LIBOR plus 1.80%. Principal payments are due at maturity in September 2037. The effective rate as of December 31, 2019 was 3.69%. The Patriot II Trust Securities are guaranteed by the Company and are subject to redemption. The Company may redeem the debt securities, in whole or in part, at any time at an amount equal to the principal amount of the debt securities being redeemed plus any accrued and unpaid interest.

The Parkway Trust Securities, SovDallas Trust Securities, Patriot I Trust Securities and Patriot II Trust Securities qualify as Tier 1 capital, subject to regulatory limitations, under guidelines established by the Federal Reserve.

Subordinated Notes

During 2013 the Company issued, in the aggregate principal amount of $5,000, subordinated promissory notes (the “Notes”) in a private offering. The Notes were issued to certain entities controlled by an affiliate of the Company. The Notes are unsecured, with interest payable quarterly at a fixed rate of 6.0% per annum, and unpaid principal and interest due at the stated maturity on December 31, 2023. The Notes qualify as Tier 2 Capital, subject to regulatory limitations, under guidelines established by the Federal Reserve. In addition, the Notes may be redeemed, in whole or in part, on any interest payment date that occurs on or after December 23, 2018, subject to approval of the Federal Reserve.

In connection with the issuance of the Notes, the Company issued warrants to purchase 25,000,000 shares of common stock of the Company at an exercise price of $11.00 per share, exercisable at any time, in whole or in part, prior to December 31, 2023. The fair value of the warrants was calculated at $0.80 and is recorded as additional paid-in capital, and the related debt discount is being accreted into interest expense.

In connection with the Company’s acquisition of Green on January 1, 2019, the Company assumed $35,000,000 of 8.50% Fixed-to-Floating Rate Subordinated Notes (the “Notes”) that mature on December 15, 2026. The Notes, which qualify as Tier 2 capital under the Federal Reserve’s capital guidelines, have an interest rate of 8.50% per annum during the fixed-rate period from date of issuance through December 15, 2021. Interest is payable semi-annually on each June 15 and December 15 through December 15, 2021.

During the floating rate period from December 15, 2021, to but excluding the maturity date or date of earlier redemption, the Notes will bear interest at a rate per annum equal to three-month LIBOR for the related interest period plus 6.685%, payable quarterly on each March 15, June 15, September 15 and December 15. The Notes are subordinated in right of payment to all of the Company's senior indebtedness and effectively subordinated to all existing and future debt and all other liabilities of the Bank. The Company may elect to redeem the Notes (subject to regulatory approval), in whole or in part, on any early redemption date which is any interest payment date on or after December 15, 2021 at a redemption price equal to 100% of the principal amount plus any accrued and unpaid interest. Other than on an early redemption date, the Notes cannot be accelerated except in the event of bankruptcy or the occurrence of certain other events of insolvency or reorganization.

On November 8, 2019, the Company issued $75,000 in aggregate principal amount of 4.75% Fixed-to-Floating Rate Subordinated Notes ("New Notes"). The New Notes were issued in a private placement transaction to certain qualified institutional buyers and accredited and were registered under the Securities Act effective February 13, 2020. The New Notes were issued under an indenture for Fixed-to-Floating Rate Subordinated Notes dated November 8, 2019, between Veritex Holdings, Inc., as issuer, and UMB Bank, N.A., as trustee. The Company may elect to redeem the New Notes (subject to regulatory approval), in whole or in part, on any early redemption date which is any interest payment date on or after November 15, 2024 at a redemption price equal to 100% of the principal amount plus any accrued and unpaid interest. The New Notes, which qualifies as Tier 2 capital under the Federal Reserve's capital guidelines, have an interest rate of 4.75% per annum during the fixed rate period from date of issuance through November 15, 2024. Interest is payable semi-annually on each May 15 and November 15 through November 15, 2024. The interest rate on the notes will vary beginning November 15, 2024, at a floating rate equal to the secured overnight financing rate, as determined quarterly on the determination date for the applicable interest period, plus 347 basis points.

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
Consolidated Statements of Income - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Interest income:
Loans, including fees	$ 340,813	$ 134,460	$ 73,795
Investment securities	29,484	6,605	3,462
Deposits in financial institutions and Fed Funds sold	5,540	3,149	2,287
Other investments	2,949	855	8
Total interest and dividend income	378,786	145,069	79,552
Interest expense:
Transaction and savings deposits	40,355	17,599	8,981
Certificates and other time deposits	38,675	9,714	897
Advances from FHLB	9,984	1,701	531
Subordinated debentures and subordinated notes	4,675	1,031	635
Total interest expense	93,689	30,045	11,044
Net interest income	285,097	115,024	68,508
Provision for loan losses	21,514	6,603	5,114
Net interest income after provision for loan losses	263,583	108,421	63,394
Noninterest income:
Service charges and fees on deposit accounts	14,334	3,420	2,502
Loan fees	7,782	1,332	657
(Loss) gain on sales of investment securities	(1,852)	(64)	222
Gain on sales of loans and other assets owned	4,863	3,056	3,141
Rental income	1,481	1,654	139
Other	3,472	1,677	915
Total noninterest income	30,080	11,075	7,576
Noninterest expense:
Salaries and employee benefits	72,791	31,138	20,828
Occupancy and equipment	16,385	10,679	5,618
Professional and regulatory fees	11,597	7,282	4,158
Data processing and software expense	8,365	3,020	2,217
Marketing	3,259	1,783	1,293
Amortization of intangibles	10,887	3,467	964
Telephone and communications	1,847	1,299	720
Merger and acquisition expense	38,960	5,220	2,691
Other	13,712	5,371	4,300
Total noninterest expense	177,803	69,259	42,789
Income before income tax expense	115,860	50,237	28,181
Income tax expense	25,121	10,896	13,029
Net income	90,739	39,341	15,152
Preferred stock dividends	0	0	42
Net income allocated to common stockholders	$ 90,739	$ 39,341	$ 15,110
Basic earnings per share (in USD per share)	$ 1.71	$ 1.63	$ 0.82
Diluted earnings per share (in USD per share)	$ 1.68	$ 1.60	$ 0.80

Business Combinations (Tables)

12 Months Ended

Dec. 31, 2019

Business Combinations [Abstract]

Schedule of Consideration Transferred

The following table presents the fair value of each class of consideration transferred at the close date.


Equivalent shares of Veritex common stock issued in exchange for Green outstanding shares	29,532,957
Veritex common stock price per share as of close date	$	21.38
Fair value of Veritex common stock issued in exchange for Green outstanding shares	$	631,415
Fair value of Green equity-based awards attributed to pre-combination service	12,484
Cash consideration to Green shareholders	10
Total consideration transferred	$	643,909

Schedule of Acquired Assets and Assumed Liabilities


	Estimate at January 1, 2019		Measurement Period Adjustments		Final Fair Value
Assets
Cash and cash equivalents	$	112,720	$	—	$	112,720
Investment securities	661,032		(240)		660,792
Equity securities	12,322		—		12,322
Federal Home Loan Bank and Federal Reserve Bank stock	29,490		—		29,490
Loans held for sale	9,360		—		9,360
Loans held for investment	3,245,492		(244)		3,245,248
Accrued interest receivable¹	11,673		(278)		11,395
Bank owned life insurance	56,841		—		56,841
Bank premises, furniture and equipment	39,426		(2,571)		36,855
Investment in trusts	666		—		666

Intangible assets, net	65,718		—		65,718
Goodwill	206,821		2,572		209,393
Other assets	10,720		404		11,124
Right of use asset¹	9,373		—		9,373
Deferred taxes¹	11,535		248		11,783
Current taxes¹	1,799		13		1,812
Branch assets held for sale	85,307		—		85,307
Total assets	$	4,570,295	$	(96)	$	4,570,199
Liabilities
Non-interest-bearing deposits	$	825,364	$	—	$	825,364
Interest-bearing deposits	1,300,825		—		1,300,825
Certificates and other time deposits	1,346,915		—		1,346,915
Accounts payable and other accrued expenses	26,587		(96)		26,491
Lease liability²	9,373		—		9,373
Accrued interest payable	5,181		—		5,181
Securities sold under agreements to repurchase	3,226		—		3,226
Advances from Federal Home Loan Bank	300,000		—		300,000
Subordinated debentures and subordinated notes	56,233		—		56,233
Branch liabilities held for sale	52,682		—		52,682
Total liabilities	$	3,926,386	$	(96)	$	3,926,290

¹ Accrued interest receivable, right of use asset, deferred taxes and current taxes are included in "Other assets" in our consolidated balance sheets for the year ended December 31, 2019.

² Lease liability is included in "Accounts payable and other accrued expenses" in our consolidated balance sheets for the year ended December 31, 2019.

Summary of Loans Acquired in a Business Combination

The following table discloses the fair value and contractual value of loans acquired from Green on January 1, 2019:


	PCI loans		Other acquired loans		Total acquired loans
Real estate	$	132,006	$	1,783,938	$	1,915,944
Commercial	50,057		1,099,012		1,149,069
Mortgage warehouse	—		166,850		166,850
Consumer	184		13,201		13,385
Total fair value	182,247		3,063,001		3,245,248
Contractual principal balance	$	242,013	$	3,093,047	$	3,335,060

The following table presents additional information about PCI loans acquired from Green on January 1, 2019:


	PCI loans
Contractually required principal and interest	$	277,773
Non-accretable difference	75,656
Cash flows expected to be collected	$	202,117
Accretable difference	19,870
Fair value of PCI loans	$	182,247

Summary of Branch Assets and Liabilities Held for Sale


	January 1, 2019
Assets
Cash and cash equivalents	$	392
Loans	78,366
Bank premises, furniture and equipment	19
Intangible assets	6,013
Other assets	517
Total assets	$	85,307
Liabilities
Noninterest-bearing deposits	$	52,319
Accounts payable and accrued expenses	40
Accrued interest payable and other liabilities⁽¹⁾	323
Total liabilities	$	52,682

⁽¹⁾Accrued interest payable and other liabilities includes $90 in expected selling costs.

Summary of Pro Forma Information, Business Acquisition

The pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results that would have been obtained had the acquisition actually occurred on January 1, 2017:


	Year Ended December 31,
	2018		2017
Net interest income	$	274,031	$	254,350
Net income	108,490		38,352

Basic earnings per share	$	2.00	$	0.71
Diluted earnings per share	1.97		0.70

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

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Fair Value Disclosures - Financial Instruments (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Estimated fair values and carrying values of all financial instruments
Valuation allowance for servicing assets	$ 0	$ 0
Maximum maturity period for Federal Home Loan Bank advances recorded at carrying value	90 days
Financial assets:
Held to maturity investments	$ 34,810,000
Equity securities without readily determinable fair value	3,575,000	2,050,000
Federal Home Loan Bank Stock and Federal Reserve Bank Stock	68,348,000	15,281,000
Financial liabilities:
Subordinated debentures and subordinated notes	145,571,000	16,691,000
Carrying Amount
Financial assets:
Cash and cash equivalents	251,550,000	84,449,000
Held to maturity investments	32,965,000
Loans held for sale	14,080,000	1,258,000
Loans held for investment		2,555,494,000
Accrued interest receivable	19,508,000	8,828,000
Bank-owned life insurance	80,915,000	22,064,000
Servicing asset	3,113,000	834,000
Federal Home Loan Bank Stock and Federal Reserve Bank Stock	68,348,000	15,281,000
Financial liabilities:
Deposits	5,894,350,000	2,622,428,000
Advances from FHLB	677,870,000	28,019,000
Accrued interest payable	5,893,000	1,135,000
Subordinated debentures and subordinated notes	145,571,000	16,691,000
Securities sold under agreement to repurchase		2,353,000
Level 1 \| Total Fair Value
Financial assets:
Cash and cash equivalents	0	0
Held to maturity investments	0
Loans held for sale	0	0
Loans held for investment		0
Accrued interest receivable	0	0
Bank-owned life insurance	0	0
Servicing asset	0	0
Financial liabilities:
Deposits	0	0
Advances from FHLB	0	0
Accrued interest payable	0	0
Subordinated debentures and subordinated notes	0	0
Securities sold under agreement to repurchase	0
Level 2 \| Total Fair Value
Financial assets:
Cash and cash equivalents	251,550,000	84,449,000
Held to maturity investments	34,810,000
Loans held for sale	14,080,000	1,258,000
Loans held for investment		0
Accrued interest receivable	19,508,000	8,828,000
Bank-owned life insurance	80,915,000	22,064,000
Servicing asset	3,113,000	834,000
Financial liabilities:
Deposits	5,692,217,000	2,506,379,000
Advances from FHLB	708,692,000	28,063,000
Accrued interest payable	5,893,000	1,135,000
Subordinated debentures and subordinated notes	145,571,000	16,691,000
Securities sold under agreement to repurchase	2,353,000
Level 3 \| Total Fair Value
Financial assets:
Cash and cash equivalents	0	0
Held to maturity investments	0
Loans held for sale	0	0
Loans held for investment		2,553,376,000
Accrued interest receivable	0	0
Bank-owned life insurance	0	0
Servicing asset	0	0
Financial liabilities:
Deposits	0	0
Advances from FHLB	0	0
Accrued interest payable	0	0
Subordinated debentures and subordinated notes	0	$ 0
Securities sold under agreement to repurchase	0
Mortgage warehouse \| Carrying Amount
Financial assets:
Loans held for investment	183,628,000
Mortgage warehouse \| Level 1 \| Total Fair Value
Financial assets:
Loans held for investment	0
Mortgage warehouse \| Level 2 \| Total Fair Value
Financial assets:
Loans held for investment	0
Mortgage warehouse \| Level 3 \| Total Fair Value
Financial assets:
Loans held for investment	185,060,000
Real Estate, Commercial and Consumer Portfolio Segments \| Carrying Amount
Financial assets:
Loans held for investment	5,737,577,000
Real Estate, Commercial and Consumer Portfolio Segments \| Level 1 \| Total Fair Value
Financial assets:
Loans held for investment	0
Real Estate, Commercial and Consumer Portfolio Segments \| Level 2 \| Total Fair Value
Financial assets:
Loans held for investment	0
Real Estate, Commercial and Consumer Portfolio Segments \| Level 3 \| Total Fair Value
Financial assets:
Loans held for investment	$ 5,714,885,000

Securities - Equity Securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]
Equity securities	$ 11,122
Unrealized gain recognized on equity securities with a readily determinable fair value	325	$ 0
Equity securities without readily determinable fair value	$ 3,575	$ 2,050

Stock and Incentive Plans - Veritex Green Omnibus Plan Restricted Stock Units (Details) - Veritex Green Omnibus Plan $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($) $ / shares shares
Nonperformance-based stock options
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Nonvested at the beginning of the period (in shares) \| shares	0
Number of shares awarded (in shares) \| shares	116,250
Nonvested at the end of the period (in shares) \| shares	116,250
Weighted Average Exercise Price
Nonvested at the beginning of the period (in dollars per share) \| $ / shares	$ 0
Granted (in dollars per share) \| $ / shares	21.38
Nonvested at the end of the period (in dollars per share) \| $ / shares	$ 21.38
Performance Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Nonvested at the beginning of the period (in shares) \| shares	0
Number of shares awarded (in shares) \| shares	26,145
Forfeited (in shares) \| shares	(825)
Nonvested at the end of the period (in shares) \| shares	25,320
Weighted Average Exercise Price
Nonvested at the beginning of the period (in dollars per share) \| $ / shares	$ 0
Granted (in dollars per share) \| $ / shares	21.38
Forfeited (in dollars per share) \| $ / shares	21.38
Nonvested at the end of the period (in dollars per share) \| $ / shares	$ 21.38
Restricted stock units
Weighted Average Exercise Price
Unrecognized compensation expense (in dollars) \| $	$ 1,991
Requisite service period to recognize compensation cost	1 year 11 months 26 days
Nonperformance-based stock options
Weighted Average Exercise Price
Nonperformance-based stock options exercised \| $	$ 3,054

Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Income Taxes (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Penalties and interest expense	$ 309,000	$ 0	$ 0

Deposits

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Deposits

DepositsDeposits in the accompanying consolidated balance sheets are summarized as follows:


	December 31,
	2019		2018
Noninterest-bearing demand accounts	$	1,556,500	$	626,283
Interest-bearing demand accounts	388,877		146,969
Savings accounts	86,079		33,147
Limited access money market accounts	2,180,016		1,133,045
Certificates of deposit, greater than $100	1,234,324		392,935
Certificates of deposit, less than $100	448,554		290,049
Total	$	5,894,350	$	2,622,428

As of December 31, 2019, the scheduled maturities of certificates of deposit were as follows:


Year	Amount
2020	$	1,321,767
2021	288,902
2022	41,955
2023	16,558
2024	13,696

Total	$	1,682,878

The aggregate amount of demand deposit overdrafts that have been reclassified as loans were $259 and $153 as of December 31, 2019 and 2018, respectively. Brokered deposits at December 31, 2019 and 2018 totaled approximately $312,467 and $234,190, respectively.

Summary of Quarterly Financial Statements (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2019

Summary of Quarterly Financial Information

The following quarterly information is unaudited. However, in the opinion of management, the information reflects all adjustments, which are necessary for the fair presentation of the results of operations, for the periods presented.


	2019
	Fourth Quarter		Third Quarter		Second Quarter		First Quarter
Interest Income	$	91,742	$	95,643	$	96,177	$	95,224
Interest Expense	21,878		24,769		24,735		22,307
Net interest income	69,864		70,874		71,442		72,917
Provision for loan losses	3,493		9,674		3,335		5,012
Noninterest income	7,132		8,430		6,034		8,484
Noninterest expense	36,284		34,630		39,896		66,993
Provision for income taxes	8,168		7,595		7,369		1,989
Net income available to common stockholders	$	29,051	$	27,405	$	26,876	$	7,407
Earnings per share:
Basic	$	0.56	$	0.52	$	0.50	$	0.14
Diluted	0.56		0.51		0.49		0.13


	2018
	Fourth Quarter		Third Quarter		Second Quarter		First Quarter
Interest Income	$	38,182	$	37,920	$	34,857	$	34,110
Interest Expense	9,487		8,642		6,931		4,985
Net interest income	28,695		29,278		27,926		29,125
Provision for loan losses	1,364		3,057		1,504		678
Noninterest income	3,619		2,408		2,290		2,758
Noninterest expense	17,538		18,246		16,169		17,306
Provision for income taxes	3,587		1,448		2,350		3,511


Net income available to common stockholders	$	9,825	$	8,935	$	10,193	$	10,388
Earnings per share:
Basic	$	0.41	$	0.37	$	0.42	$	0.43
Diluted	0.40		0.36		0.42		0.42

Employee Benefits

12 Months Ended

Dec. 31, 2019

Retirement Benefits [Abstract]

Employee Benefits

Defined Contribution Plan

The Company maintains a retirement savings 401(k) profit sharing plan (the “Plan”) in which substantially all employees may participate. The Plan allows employees to make discretionary “before tax” contributions through salary reductions under section 401(k) of the Internal Revenue Code. The Company may make a discretionary match of employees’ contributions based on a percentage of salary deferrals and certain discretionary profit sharing contributions. For the year ended December 31, 2019, the company made matching contributions of $2,896. No matching contributions to the Plan were made for the year ending December 31, 2018. The Plan was amended in December 2018 to start contributing matching contributions by the Company effective January 1, 2019.

ESOP

Effective January 1, 2012, the Company adopted the ESOP, which covers substantially all employees (subject to certain exclusions). The ESOP was amended effective December 31, 2018 to cease new contributions or allocations to the ESOP effective January 1, 2019. All ESOP assets are held in trust and managed by C. Malcolm Holland, III, in his capacity as the trustee of the ESOP. Shares of the Company’s common stock purchased by the ESOP were initially held in a suspense account until released for allocation to participants.

On January 3, 2014, the ESOP borrowed $500 from the Company and purchased 46,082 shares of the common stock of the Company. The ESOP debt was secured by shares of the Company. The loan was repaid from cash contributions made by the Company to the ESOP. As the debt was repaid, shares were released from collateral and allocated to participants’ accounts. For the year ended December 31, 2018, the Company received a $109 debt payment from the ESOP and released 9,771 shares from collateral (and, as noted above, such shares were also released from the suspense account). This note was fully repaid in December 2018, and all shares have been allocated to participant accounts.

The Company issued 9,147 shares to the ESOP in June of 2015 to settle in full the 401(k) matching liability that was accrued prior to the origination of the $500 loan to the ESOP in January 2014.

There was no compensation expense attributed to the ESOP for the year ended December 31, 2019. Compensation expense attributed to the ESOP contributions recorded in the accompanying consolidated statements of income for years ended December 31, 2018 and 2017 was approximately $863 and $240, respectively.

The following is a summary of the ESOP shares as of December 31, 2019 and December 31, 2018.


	December 31,
	2019	2018
Allocated shares	63,040	63,040
Unearned shares	—	—
Total ESOP shares	63,040	63,040

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Significant Accounting Policies

Nature of Operations and Principles of Consolidated Financial Statements

The consolidated financial statements include Veritex Holdings, Inc. (“Veritex” or the “Company”), whose business at December 31, 2019 primarily consisted of the operations of its wholly owned subsidiary, Veritex Community Bank (the “Bank”).

The accounting principles followed by the Company and the methods of applying them are in conformity with U.S. generally accepted accounting principles (“GAAP”) and prevailing practices of the banking industry. Intercompany transactions and balances are eliminated in consolidation.

Veritex is a Texas state banking organization with corporate offices in Dallas, Texas, and as of December 31, 2019 operated 25 branches and one mortgage office located in the Dallas-Fort Worth metroplex, 12 branches in the Houston metropolitan area, and one branch in Louisville, Kentucky. The Bank provides a full range of banking services to individual and corporate customers, which include commercial and retail lending, and the acceptance of checking and savings deposits. The Texas Department of Banking and the Board of Governors of the Federal Reserve System are the primary regulators of the Company and the Bank, and they perform periodic examinations to ensure regulatory compliance.

On January 1, 2019, the Company completed its acquisition of Green Bancorp, Inc. (“Green”), the parent holding company of Green Bank, N.A, a nationally chartered commercial bank headquartered in Houston, Texas. See additional information on the acquisition in Note 25 - Business Combinations.

Accounting Standards Codification

The Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) is the officially recognized source of authoritative GAAP applicable to all public and non-public non-governmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under the authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. All other accounting literature is considered non-authoritative. Citing particular content in the ASC involves specifying the unique numeric path to the content through the Topic, Subtopic, Section and Paragraph structure.

Segment Reporting

The Company has one reportable segment. All of the Company’s activities are interrelated, and each activity is dependent and assessed based on how each activity of the Company supports the others. For example, lending is dependent upon the ability of the Company to fund itself with deposits and borrowings while managing interest rate and credit risk. Accordingly, all significant operating decisions are based upon analysis of the Bank as one segment or unit. The Company’s chief operating decision-maker, the Chief Executive Officer, uses the consolidated results to make operating and strategic decisions.

Reclassifications

Some items in the prior year financial statements were reclassified to conform to current presentation including (i) the dividend income from other noninterest income into interest on other investments of $835 and $298 for the years ended December 31, 2018, and 2017, respectively, (ii) non-marketable securities of $15,281 into Federal Home Loan Bank and Federal Reserve Bank stock, (iii) non-marketable equity securities of $2,050 into equity securities as of December 31, 2018, (iv) non-marketable equity securities of $5,491 into other assets as of December 31, 2018, and (v) accrued interest receivable of $8,828 into other assets as of December 31, 2018.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Actual results could differ from those estimates. The allowance for loan losses, the fair values of financial instruments, realization of deferred tax assets, and the status of contingencies are particularly subject to change.

Cash and Cash Equivalents

For the purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks and federal funds sold.

The Bank maintains deposits with other financial institutions in amounts that exceed federal deposit insurance coverage. Furthermore, federal funds sold are essentially uncollateralized loans to other financial institutions. Management regularly evaluates the credit risk associated with the counterparties to these transactions and believes that the Company is not exposed to any significant credit risks on cash and cash equivalents.

Restrictions on Cash

The Bank is required to maintain regulatory reserve balances with the Federal Reserve Bank. The reserve balances required as of December 31, 2019 and 2018 were approximately $170,593 and $64,752, respectively.

Investment Securities

Investment securities that the Company has both the positive intent and ability to hold to maturity are classified as held to maturity and are carried at amortized cost. Investment securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity, are classified as available for sale and are carried at fair value. Unrealized gains and losses on investment securities classified as available for sale have been accounted for as accumulated other comprehensive income (loss), net of taxes. Management determines the appropriate classification of investment securities at the time of purchase.

Interest income includes amortization of purchase premiums and discounts. Realized gains and losses are recorded on the sale of debt securities in noninterest income. Credit related declines in the fair value of securities available for sale or held to maturity below their amortized cost that are deemed to be other than temporary are reflected in earnings as realized losses, with remaining unrealized losses for available for sale securities recognized as a component of other comprehensive income. In estimating other-than-temporary impairment losses, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, and (iii) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. For the years ended December 31, 2019, 2018 and 2017 there were no other-than-temporary impairment losses reflected in earnings as realized losses.

Equity Securities

Equity securities are recorded at fair value, with unrealized gains and losses included in noninterest income. The Company measures equity securities that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Dividends on equity securities are recorded in interest income for other investments. Realized gains and losses are recorded on the sale of equity securities in noninterest income. The Company recorded no impairment for equity securities without a readily determinable fair value for the years ended December 31, 2019 and 2018.

Federal Home Loan Bank and Federal Reserve Bank Stock

The Bank is a member of its regional Federal Reserve Bank (“FRB”) and of the Federal Home Loan Bank ("FHLB") system. FHLB members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. Both FRB and FHLB stock are carried at cost, restricted for sale, and periodically evaluated for impairment based on ultimate recovery of par value. Dividends are recorded in interest income for other investments.

Loans Held for Sale

Loans are classified as held-for-sale when management has positively determined that the loans will be sold in the foreseeable future and the Company has the intent and ability to do so. The Company’s held-for-sale loans typically consist of certain government guaranteed loans or mortgage loans. The classification may be made upon origination or subsequent to origination or purchase. Once a decision has been made to sell loans not previously classified as held-for-sale, such loans are transferred into the held-for-sale classification and carried at the lower of cost or estimated fair value on an individual loan basis, except for those held-for-sale loans for which the Company elects to use the fair value option. The fair value of loans held-for-sale is based on commitments from investors or prevailing market prices. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. The Company obtains commitments to purchase the loans from secondary market investors prior to closing of the loans. Loans held for sale are sold with servicing released. Gains and losses on sales of loans held for sale are based on the difference between the selling price and the carrying value of the related loan sold.

Fair Value Option

On a specific identification basis, the Company may elect the fair value option for certain financial instruments in the period the financial instrument was originated or acquired. Changes in fair value for instruments using the fair value option are recorded in other noninterest income. The Company had a change in fair value for loans held for sale using the fair value option of $303 for the year ended December 31, 2019. There were no changes in fair value for loans held for sale using the fair value option for the years ended December 31, 208 and 2017.

Gain on Sale of Guaranteed Portion of SBA Loans

The Company originates loans to customers under government guaranteed programs that generally provide for guarantees of 50% to 90% of each loan, subject to a maximum guaranteed amount. The Company can sell the guaranteed portion of the loan in an active secondary market and retains the unguaranteed portion in its portfolio.

All sales of government guaranteed loans are executed on a servicing retained basis, and the Company retains the rights and obligations to service the loans. The standard sale structure provides for the Company to retain a portion of the cash flow from the interest payment received on the loan. When a loan sale involves the transfer of an interest less than the entire loan, the controlling accounting method under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 860, Transfers and Servicing, requires the seller to reallocate the carrying basis between the assets transferred and the assets retained based on the relative fair value of the respective assets as of the date of sale. The maximum gain on sale that can be recognized is the difference between the fair value of the assets sold and the reallocated basis of the assets sold. The gain on sale, which is recognized in income, is the sum of the cash premium on the guaranteed loan and the fair value of the servicing assets recognized, less the discount recorded on the unguaranteed portion of the loan retained by the Company.

Gain on Sale of Mortgage Loans Held for Sale

Certain mortgage loans held for sale are sold with servicing released. Gains and losses on sales of mortgage loans held for sale are based on the difference between the selling price and the carrying value of the loan sold.

Loans and Allowance for Loan Losses

Loans, excluding certain purchased loans that have shown evidence of deterioration since origination as of the date of the acquisition, that management has the intent and ability to hold for the foreseeable future or until maturity or repayment are stated at the amount of unpaid principal, reduced by unearned income and an allowance for loan losses. Interest on loans is recognized using the effective-interest method on the daily balances of the principal amounts outstanding. Fees associated with the origination of loans and certain direct loan origination costs are netted and the net amount is deferred and recognized over the life of the loan as an adjustment of yield.

The accrual of interest on loans is discontinued when, in management’s opinion, the borrower may be unable to meet payment obligations as they come due, as well as when required by regulatory provisions. Loans may be placed on non-accrual status regardless of whether or not such loans are considered past due. When a loan is placed on non-accrual status, all previously accrued and unpaid interest is reversed. Interest income is subsequently recognized on a cash basis as long as the remaining book balance of the asset is deemed to be collectible. If collectability is questionable, then cash payments are applied to principal. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured in accordance with the terms of the loan agreement.

The allowance for loan losses is an estimated amount management believes is adequate to absorb inherent losses on existing loans that may be uncollectible based upon review and evaluation of the loan portfolio. Management’s periodic evaluation of the allowance is based on general economic conditions, the financial condition of borrowers, the value and liquidity of collateral, delinquency, prior loan loss experience, and the results of periodic reviews of the portfolio. The allowance for loan losses is comprised of two components: the general reserve and specific reserves. The general reserve is determined in accordance with current authoritative accounting guidance. The Company’s calculation of the general reserve considers historical loss rates for the last three years adjusted for qualitative factors based on general economic conditions and other qualitative risk factors both internal and external to the Company. Such qualitative factors include current local economic conditions and trends including unemployment, changes in lending staff, policies and procedures, changes in credit concentrations, changes in the trends and severity of problem loans and changes in trends in volume and terms of loans. These qualitative factors serve to compensate for additional areas of uncertainty inherent in the portfolio that are not reflected in the Company’s historic loss factors. For purposes of determining the general reserve, the loan portfolio, less cash secured loans, government guaranteed loans and impaired loans, is multiplied by the Company’s adjusted historical loss rate. Specific reserves are determined in accordance with current authoritative accounting guidance based on probable losses on specific classified loans. The allowance for loan losses is increased by charges to income and decreased by charge-offs (net of recoveries).

Due to the growth of the Bank over the past several years, a portion of its lending relationships and the loans in its portfolio are of relatively recent origin. The new loan portfolios have limited delinquency and credit loss history and have not yet exhibited an observable loss trend. The credit quality of loans in these loan portfolios is impacted by delinquency status and debt service coverage generated by the borrowers’ business and fluctuations in the value of real estate collateral. Management considers delinquency status to be the most meaningful indicator of the credit quality of one-to-four single family residential, home equity loans and lines of credit and other consumer loans. In general, loans do not begin to show signs of credit deterioration or default until they have been outstanding for some period of time, a process the Company refers to as “seasoning.” As a result, a portfolio of older loans will usually behave more predictably than a portfolio of newer loans. Because the majority of the portfolio is relatively new, the current level of delinquencies and defaults may not be representative of the level that will prevail when the portfolio becomes more seasoned, which may be higher than current levels.

Delinquency statistics are updated at least monthly. Internal risk ratings are considered the most meaningful indicator of credit quality for new commercial, construction and commercial real estate loans. Internal risk ratings are a key factor in identifying loans that are individually evaluated for impairment and impact management’s estimates of loss factors used in determining the amount of the allowance for loan losses. Internal risk ratings are updated on a continuous basis.

Loans are considered impaired when, based on current information and events, it is probable the Company will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. If a loan is impaired, a specific valuation allowance is recorded, if necessary. Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. Impaired loans, or portions thereof, are charged off when deemed uncollectible.

Company policy requires measurement of the allowance for an impaired collateral dependent loan based on the fair value of the collateral. Other loan impairments are measured based on the present value of expected future cash flows discounted at the loan's effective interest rate or the loan’s observable market price.

From time to time, the Company may modify its loan agreement with a borrower. A modified loan is considered a troubled debt restructuring when two conditions are met: (i) the borrower is experiencing financial difficulty and (ii) concessions are made by the Company that would not otherwise be considered for a borrower with similar credit risk characteristics. Modifications to loan terms may include a lower interest rate, a reduction of principal, or a longer term to maturity. All troubled debt restructurings are considered impaired loans. The Company reviews each troubled debt restructured loan and determines on a case by case basis whether a specific valuation allowance is required. A specific valuation allowance is based on either the present value of estimated future cash flows or the estimated fair value of the underlying collateral.

The Company has certain lending policies and procedures in place that are designed to maximize loan income with an acceptable level of risk. Management reviews and approves these policies and procedures on a regular basis and makes changes as appropriate. Management receives frequent reports related to loan originations, quality, concentrations, delinquencies, and non-performing and potential problem loans. Diversification in the loan portfolio is a means of managing risk associated with fluctuations in economic conditions, both by type of loan and geography.

Commercial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably and effectively. Underwriting standards are designed to determine whether the borrower possesses sound business ethics and practices and to evaluate current and projected cash flows to determine the ability of the borrower to repay its obligations as agreed. Commercial loans are primarily made based on the identified cash flows of the borrower and, secondarily, on the underlying collateral provided by the borrower. Most commercial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory, and include personal guarantees.

Real estate loans are subject to underwriting standards and processes similar to commercial loans. These loans are underwritten primarily based on projected cash flows and, secondarily, as loans secured by real estate. The repayment of real estate loans is generally largely dependent on the successful operation of the property securing the loans or the business conducted on the property securing the loan. Real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s real estate portfolio are generally diverse in terms of type and geographic location, throughout the Dallas-Fort Worth metroplex and Houston metropolitan area. This diversity helps reduce the exposure to adverse economic events that may affect any single market or industry.

The Company utilizes methodical credit standards and analyses to supplement its policies and procedures in underwriting consumer loans. The Company’s loan policy addresses types of consumer loans that may be originated and the collateral, if secured, which must be perfected. The relatively smaller individual dollar amounts of consumer loans that are spread over numerous individual borrowers also minimizes the Company’s risk.

Certain Purchased Loans

The Company purchases individual loans and groups of loans, through both acquisitions of other banks and the normal course of its operations, some of which have shown evidence of credit deterioration since origination. These purchased credit impaired (“PCI”) loans are recorded at fair value at acquisition in a business combination, such that there is no carryover of the seller’s allowance for loan losses. After consummation of the acquisition, losses are recognized by an increase in the provision for loan losses.

PCI loans are accounted for individually or aggregated into pools of loans based on common risk characteristics such as credit grade, loan type, and date of origination. On the date of acquisition, the Company estimates the amount and timing of expected cash flows for each purchased loan or pool, and the expected cash flows in excess of carrying value are recorded as interest income over the estimated life of the loan or pool. The excess of the loan’s or pool’s contractual principal and interest over expected cash flows is not recorded.

Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, except for present value changes solely due to changes in timing of cash flows, an impairment loss is recorded through the allowance for loan losses. If the present value of expected cash flows is greater than the carrying amount, any related allowance for loan loss is reversed, with the remaining yield being recognized prospectively through interest income.

Derivative Financial Instruments

The Company has entered into certain derivative instruments pursuant to a customer accommodation program under which the Company enters into an interest rate swap, floor, cap or collar agreement with a commercial customer and an agreement with offsetting terms with a correspondent bank. These derivative instruments are not designated as accounting hedges and the changes in net fair value are recognized in noninterest income or expense and the fair value amounts are included in other assets and other liabilities.

Interest Rate Swap, Floor, Cap and Collar Agreements Designated as Cash Flow Hedges

Cash flow hedge relationships mitigate exposure to the variability of future cash flows or other forecasted transactions. The Company uses interest rate swaps, floors, caps and collars to manage overall cash flow changes related to interest rate risk exposure on benchmark interest rate loans. The entire change in the fair value related to the derivative instrument is recognized as a component of other comprehensive income and subsequently reclassified into interest income when the forecasted transaction affects income.

The Company assesses the “effectiveness” of hedging derivatives on the date an arrangement was entered into and on a prospective basis at least quarterly. Hedge “effectiveness” is determined by the extent to which changes in the fair value of a derivative instrument offset changes in the fair value, cash flows or carrying value attributable to the risk being hedged. If the relationship between the change in the fair value of the derivative instrument and the change in the hedged item falls within a range considered to be the industry norm, the hedge is considered “highly effective” and qualifies for hedge accounting. A hedge is “ineffective” if the relationship between the changes falls outside the acceptable range. In that case, hedge accounting is discontinued on a prospective basis. The time value of the option is excluded from the assessment of effectiveness and is recognized in earnings using a straight-line amortization method over the life of the hedge arrangement.

Transfers of Financial Assets

Transfers of financial assets (generally consisting of sales of loans held for sale and loan participations with unaffiliated banks) are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

Bank Premises and Equipment


Buildings and improvements			10 - 40 years
Site improvements			15 years
Tenant improvements			Lease term
Leasehold improvements			Lease term
Furniture and equipment			3 - 10 years

Major replacements and betterments are capitalized while maintenance and repairs are charged to expense when incurred. Gains or losses on dispositions are reflected in the consolidated statements of income as incurred.

Bank premises and equipment with definite lives are tested for impairment when a triggering event occurs. No impairment charges related to bank premises and equipment assets were recorded during the years ended December 31, 2019, 2018 and 2017.

Leases

FASB Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) (“ASU 2016-02”), requires that lessees and lessors recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU 2018-11, Targeted Improvements. ASU 2016-02 provides for a modified retrospective transition approach requiring lessees to recognize and measure leases on the balance sheet at the beginning of either the earliest period presented or as of the beginning of the period of adoption. The Company elected to apply ASU 2016-02 as of the beginning of the period of adoption, January 1, 2019, and will not restate comparative periods. The Company has no material leasing arrangements for which it is the lessor of property or equipment. The Company has made an accounting policy election not to apply the recognition requirements in the new standard to short-term leases. The Company has elected to apply the package of practical expedients as both the lessor and lessee allowed by the new standard under which the Company need not reassess whether any expired or existing contracts are or contain leases, the Company need not reassess the lease classification for any expired or existing lease, and the Company need not reassess initial direct costs for any existing leases. The Company has also elected to use the practical expedient to make an accounting policy election for leases of certain underlying assets to include both lease and nonlease components as a single component and account for that single component as a lease.

The Company’s operating leases relate primarily to office space and bank branches. Right-of-use (“ROU”) assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents the Company’s incremental borrowing rate at the lease commencement date. ROU assets are further adjusted for lease incentives, deferred rent and prepaid rent. Operating lease expense, which consists of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded in occupancy and equipment expense in the consolidated statements of income. As a result of implementing ASU 2016-02, the Company recognized an operating lease ROU asset of $18,705 and an operating lease liability of $18,753 on January 1, 2019, with no impact on the consolidated statement of income or consolidated statement of cash flows compared to the prior lease accounting model. The ROU asset and operating lease liability amounts recorded upon implementing ASU 2016-02 include the ROU asset and lease liability acquired/assumed from Green. Refer to Note 25 - Business Combinations for additional information. The ROU asset and operating lease liability are recorded in other assets and other liabilities, respectively, in the condensed consolidated balance sheets. See Note 8 - Leases for additional information.

Securities Sold Under Agreements to Repurchase

Securities sold under agreements to repurchase represent the purchase of interests in securities by the Company’s customers. Securities sold under agreements to repurchase are stated at the amount of cash received in connection with the transaction. The Company does not account for any of its repurchase agreements as sales for accounting purposes in its financial statements. Repurchase agreements are settled on the following business day. All securities sold under agreements to repurchase are collateralized by pledged securities. The securities underlying the repurchase agreements are held in safekeeping by the Bank’s safekeeping agent.

Other Real Estate Owned

Other real estate owned represents properties acquired through or in lieu of loan foreclosure and is initially recorded at fair value less estimated costs to sell. At foreclosure, if the fair value, less estimated costs to sell, of the real estate acquired is less than the Bank’s recorded investment in the related loan, a write-down is recognized through a charge to the allowance for loan losses. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed.

Bank-Owned Life Insurance

The Company has purchased life insurance policies on certain employees. These bank-owned life insurance (“BOLI”) policies are recorded in the accompanying consolidated balance sheets at their cash surrender values. Income from these policies and changes in the cash surrender values are recorded in noninterest income in the accompanying consolidated statements of income.

Goodwill and Intangible Assets

Goodwill resulting from a business combination represents the excess of the fair value of the consideration transferred over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill is not amortized but is reviewed for potential impairment annually on October 31 of each fiscal year or when a triggering event occurs. The Company may first assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50%) that the fair value of a reporting unit is less than its carrying amount, including goodwill. The Company has an unconditional option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to performing the first step of the goodwill impairment test, and the Company may resume performing the qualitative assessment in any subsequent period. If the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the Company proceeds to perform the first step of the two-step goodwill impairment test. Under the first step, the estimation of fair value of the reporting unit is compared to its carrying value, including goodwill. If step one indicates a potential impairment, the second step is performed to measure the amount of impairment, if any. If the carrying amount of the reporting goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. Any such adjustments are reflected in the results of operations in the periods in which they become known.

Intangible assets consist of core deposit intangibles and in-place lease intangibles associated with the purchase of our corporate office. Intangible assets are initially recognized based on a valuation performed as of the acquisition date and are amortized on a straight-line basis over their estimated useful lives of the respective intangible assets as follows:


Core deposit intangible			7 - 10 years
In-place lease intangible			Lease term

All indefinite lived intangible assets are tested annually for potential impairment or when triggering events occur. Intangible assets with definite lives are tested for impairment when a triggering event occurs. No impairment charges related to goodwill and intangible assets were recorded during the years ended December 31, 2019, 2018 and 2017.

Servicing Assets

The Company accounts for its servicing assets at amortized cost in accordance with ASC 860, Servicing Assets and Liabilities. The codification requires that servicing rights acquired through the origination of loans, which are sold with servicing rights retained, are recognized as separate assets. Servicing assets are recorded as the difference between the contractual servicing fees and adequate compensation for performing the servicing, and are periodically reviewed and adjusted for any impairment. The amount of impairment recognized, if any, is the amount by which the servicing assets exceed their fair value. Fair value of the servicing assets is estimated using discounted cash flows based on current market interest rates. Servicing rights are amortized over their estimated lives.

Branch Assets and Liabilities Held for Sale

The Company reports long-lived assets, including other assets and liabilities, as part of a disposal group, as held for sale when management has approved or received approval to sell the assets and liabilities, the Company is committed to a formal plan, the assets and liabilities are available for immediate sale, the assets and liabilities are being actively marketed, the sale is anticipated to occur during the next 12 months and certain other specific criteria are met. Assets and liabilities held for sale are recorded at the lower of their carrying amount or estimated fair value less costs to sell. If the carrying amount of the assets and liabilities exceeds its estimated fair value, a loss is recognized. Depreciation and amortization expense is not recorded on the assets held for sale after they are classified as held for sale.

Marketing Expense

The Company expenses all marketing costs as they are incurred. Marketing expenses were $3,259, $1,783 and $1,293 in 2019, 2018 and 2017, respectively.

Income Taxes

The Company files a consolidated income tax return with its subsidiaries. Federal income tax expense or benefit is allocated on a separate return basis.

The Company accounts for income taxes using the asset and liability approach for financial accounting and reporting. Deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Realization of deferred tax assets is dependent upon the generation of a sufficient level of future taxable income and recoverable taxes paid in prior years.

The Company may recognize the tax benefit of an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements would be the benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. For the years ended December 31, 2019 and 2018, management has determined there are no material uncertain tax positions.

When necessary, the Company would include interest assessed by taxing authorities in “Interest expense” and penalties related to income taxes in “Other expense” on its consolidated statements of income. The Company recorded $309 of interest or penalties related to income tax for the year ended December 31, 2019 and no interest or penalties related to income tax for the years ended December 31, 2018 and 2017. With few exceptions, such as state examinations, the Company is generally no longer subject to U.S. federal income tax examinations by tax authorities for the years before 2016.

Fair Values of Financial Instruments

Fair values of financial instruments are estimated using relevant market information and other assumptions. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. The fair value estimates of existing on and off-balance sheet financial instruments do not include the value of anticipated future business or the value of assets and liabilities not considered financial instruments.

Revenue from Contracts with Customers

The Company records revenue from contracts with customers in accordance with ASC Topic 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods.

The Company’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities and other financial instruments that are not within the scope of Topic 606. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the consolidated statements of income was not necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, the Company has made no significant judgments in applying the revenue guidance prescribed in ASC 606 that affect the determination of the amount and timing of revenue from contracts with customers.

Stock Based Compensation

Compensation cost is recognized for stock options and other equity awards (performance and non-performance based) issued to employees and directors, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options. The market price of the Company’s common stock on the date of grant is used to estimate fair value for other equity awards. A Monte Carlo simulation is used to estimate the fair value of performance-based restricted stock units that include a vesting condition and a market condition based on the Company’s total shareholder return relative to a peer group comprised of commercial banks in similar markets, which determines the number of shares of Company common stock subject to the restricted stock unit.

Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award.

Liability-Classified Awards

The fair value of a liability award is determined on a quarterly basis beginning at the grant date until final vesting. Changes in the fair value of liability awards are recorded over the vesting period of the award. Changes in the fair value of liability awards that occur during the requisite service period are recognized as compensation cost over that period. The percentage of the fair value that is accrued as compensation cost at the end of each period equals the percentage of the requisite service that has been rendered at that date. Changes in the fair value of a liability award that occur after the end of the requisite service period are recognized as compensation cost in the period in which the changes occur. Any difference between the amount for which a liability award is settled and its fair value at the settlement date is an adjustment of compensation cost in the period of settlement. Compensation cost for liability awards is recorded in salaries and employee benefits and the associated liability is recorded in accounts payable and accrued expenses.

For liability to equity award modifications, the aggregate amount of compensation cost recognized is the fair value-based measure of the award on the modification date. On the modification date, the Company reclassifies the previously recorded share-based compensation liability to additional paid-in capital.

Treasury Stock

Treasury stock is stated at cost, which is determined by the first-in, first-out method.

Comprehensive Income

Comprehensive income includes all changes in stockholders’ equity during a period, except those resulting from transactions with stockholders. In addition to net income, comprehensive income includes the net effect of changes in the fair value of securities available for sale, net of tax, and the net effect of changes in fair value of derivative instruments designated as cash flow hedges. Comprehensive income is reported in the accompanying consolidated statements of comprehensive income.

Employee Stock Ownership Plan

Effective January 1, 2012, the Company adopted the Veritex Community Bank Employee Stock Ownership Plan (“ESOP”), which covers substantially all employees (subject to certain exclusions). The ESOP was amended effective December 31, 2018 to cease new contributions or allocations to the ESOP effective January 1, 2019. All ESOP assets are held in trust and managed by C. Malcolm Holland, III, in his capacity as the trustee of the ESOP. Shares of the Company’s common stock purchased by the ESOP were initially held in a suspense account until released for allocation to participants. Prior to January 1, 2019, the Company made contributions to each eligible participant’s account each year, generally based on the participant’s 401(k) contribution made during that year. Shares were then released from the suspense accounts and allocated to each participant’s account based on the amount of the contribution and the fair value of the shares. Compensation expense for these amounts were measured based upon the expected amount of the Company’s discretionary contribution determined on an annual basis and accrued ratably over the year. Shares were committed to be released to settle the liability upon formal declaration of the contribution at the end of the year. The number of shares released to settle the liability was based upon fair value of the shares and became outstanding shares for earnings per share computations. The cost of shares issued to the ESOP, but not yet committed to be released, was shown as a reduction of stockholders’ equity. To the extent that the fair value of the ESOP shares differed from the cost of such shares, the difference was charged or credited to stockholders’ equity as additional paid in capital.

Business Combinations

The Company applies the acquisition method of accounting for business combinations. Under the acquisition method, the acquiring entity in a business combination recognizes 100% of the assets acquired and liabilities assumed at their acquisition date fair values. Management utilizes valuation techniques appropriate for the asset or liability being measured in determining these fair values. Any excess of the purchase price over amounts allocated to assets acquired, including identifiable intangible assets, and liabilities assumed is recorded as goodwill. Where amounts allocated to assets acquired and liabilities assumed is greater than the purchase price, a bargain purchase gain is recognized. Acquisition-related costs are expensed as incurred.

Earnings Per Share

Earnings per share (“EPS”) are based upon the weighted-average number of shares outstanding. The table below sets forth the reconciliation between weighted average shares used for calculating basic and diluted EPS for the years ended December 31, 2019, 2018 and 2017.


	Year Ended December 31,
	2019		2018		2017
Earnings (numerator)
Net income	$	90,739	$	39,341	$	15,152
Less: preferred stock dividends	—		—		42
Net income allocated to common stockholders	$	90,739	$	39,341	$	15,110
Shares (denominator)
Weighted average shares outstanding for basic EPS (thousands)	53,154		24,169		18,404
Dilutive effect of employee stock-based awards	824		421		406
Adjusted weighted average shares outstanding	53,978		24,590		18,810
Earnings per share:
Basic	$	1.71	$	1.63	$	0.82
Diluted	$	1.68	$	1.60	$	0.80

For the years ended December 31, 2019, 2018 and 2017, there were no anti-dilutive shares excluded from the diluted EPS weighted average shares.

Income Taxes - Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income tax expense (benefit):
Current									$ 16,068	$ 8,189	$ 7,886
Deferred									9,053	2,707	5,143
Total income tax expense	$ 8,168	$ 7,595	$ 7,369	$ 1,989	$ 3,587	$ 1,448	$ 2,350	$ 3,511	$ 25,121	$ 10,896	$ 13,029

Recent Accounting Pronouncements	12 Months Ended
Recent Accounting Pronouncements	Dec. 31, 2019
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements Recent Accounting Pronouncements ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, ASU 2016-13 eliminates the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses over the contractual life of assets within its scope. The allowance for credit losses is a valuation account that is deducted from, or added to, the amortized cost basis of the financial assets to present the net amount expected to be collected. For available for sale debt securities, credit losses should be measured in a manner similar to current GAAP, however ASU 2016-13 allows an entity to present the portion of unrealized losses attributable to credit losses as an allowance rather than as a write-down. ASU 2016-13 affects entities holding loans, debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. For public business entities, ASU 2016-13 is effective for financial statements issued for fiscal years beginning after December 15, 2019 and interim periods therein. ASU 2016-13, as updated, became effective for the Company on January 1, 2020. Through the date of adoption, the Company held working group meetings that included individuals from various functional areas relevant to the implementation of ASU 2016-13. For loans held for investment, implementation activities focused on data capture and portfolio segmentation and development of new expected credit loss estimation models. Depending on the nature of each identified segment of financial assets with similar risk characteristics, the Company will implement a discounted cash flow method or a loss-rate method to estimate expected credit losses. The Company will utilize a probability of default/loss given default model to estimate expected credit losses for our purchased credit deteriorated (“PCD”) loans. The Company utilized peer historical loss data to supplement its own limited historical loss data. Incorporating reasonable and supportable forecasts of economic conditions into the estimate of expected credit losses requires significant judgment, such as selecting economic variables and forecast scenarios as well as determining the appropriate length of the forecast horizon. Management will estimate credit losses over a selected forecast period and revert on a straight-line basis to long term historical loss experience over the remaining contractual life of the loans. Management will select economic variables it believes to be most relevant based on the correlation of an economic factor to losses of each loan segment, which will include forecasted levels of employment, pricing indexes, and gross domestic product. Management will leverage economic projections from a reputable and independent third party to develop its reasonable and supportable forecasts over the forecast period. Other internal and external indicators of economic forecasts will also be considered by management when developing the forecast metrics. Additionally, this estimated impact at adoption also includes certain qualitative adjustments to the allowance for credit losses. An assessment of our primary modeling tool was completed during the fourth quarter of 2019. For our purchased credit deteriorated loans, the transition guidance allows entities the ability to elect to maintain pools of loans accounted for under Subtopic 310-30 at adoption. We have made such election and will maintain the integrity of our current PCD pools consistent with the guidance in Subtopic 310-30 for all applicable areas of accounting which include credit loss measurement, interest income recognition, write-off determination and trouble debt restructuring identification. Regarding interest income recognition, the prospective transition approach for PCD loans (that is, the gross-up approach) will be applied at a pool level which will freeze the effective interest rate of the pools calculated on the date of adoption. Under this election, the Company will not be able to remove a loan from the pool unless the Company sells, forecloses, or otherwise receives assets in satisfaction of the loan. The Company’s working group validated the appropriateness of, among other things, management’s decision regarding portfolio segmentation, life of loan considerations, and reasonable and supportable forecasting methodology. Based on our fourth quarter parallel run and management’s current expectation of future economic conditions, we believe that adoption of ASU 2016-13 will result in an increase in our allowance for credit losses from $29,834 to between $69,420 and $71,140 as of the date of adoption. This estimated impact includes additional allowance for credit loss required on recently acquired non-purchased credit deteriorated loans that have not required an allowance under the incurred loss model. This estimated impact also includes between $18,300 and $19,600 in allowance for credit loss from transitioning of loans previously accounted for under subtopic ASC 310-30 to the PCD model in ASC 326. Further, the reserve for off balance sheet lending commitments is expected to increase approximately $2,400 as of the date of adoption. The Company is in the process of finalizing the review of the most recent model run and finalizing assumptions including qualitative adjustments, as such this estimate is subject to change. In addition, ASU 2016-13 will require that we establish an allowance for expected credit losses for certain debt securities and other financial assets; however, we do not expect any allowance at the date of adoption. As a result of the aforementioned expected adjustments and net of the impact to corresponding deferred tax assets, the Company expects a reduction of retained earnings between $15,990 and $17,350 as of the date of adoption. The Company plans to use the regulatory transition rules allowing for a three-year phase-in of the day-one regulatory capital impact upon adoption of ASU 2016-13.

Parent Company Only Financial Statements (Tables)

12 Months Ended

Dec. 31, 2019

Condensed Financial Information Disclosure [Abstract]

Balance Sheets

Balance Sheet


	December 31,
	2019		2018
Assets
Cash and cash equivalents	$	45,563	$	40,474
Investment in subsidiaries	1,289,273		506,902
Other assets	2,780		940
Total assets	$	1,337,616	$	548,316
Liabilities and Stockholders’ Equity
Other liabilities	$	1,248	$	987
Other borrowings	145,571		16,691
Total liabilities	146,819		17,678
Stockholders’ equity

Common stock	511		243
Additional paid-in capital	1,117,879		449,427
Retained earnings	147,911		83,968

Accumulated other comprehensive income	19,061		(2,930)
Treasury stock	(94,565)		(70)
Total stockholders’ equity	1,190,797		530,638
Total liabilities and stockholders’ equity	$	1,337,616	$	548,316

Statements of Income


	Year Ended December 31,
	2019		2018		2017
Cash dividends from subsidiary	$	56,750	$	—	$	—
Excess of earnings over dividend from subsidiary	43,199		44,850		17,980
Other	50		20		8
	99,999		44,870		17,988
Interest on borrowings	4,672		974		598
Salaries and employee benefits	790		853		712
Merger and acquisition expense	5,739		4,415		2,256

	11,201		6,242		3,566
Earnings before income tax benefit	88,798		38,628		14,422
Income tax benefit	(1,941)		(713)		(730)
Net income	$	90,739	$	39,341	$	15,152

Statements of Cash Flows


	Year Ended December 31,
	2019		2018		2017
Cash flows from operating activities:
Net income	$	90,739	$	39,341	$	15,152
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Amortization of debt discount, net and debt issuance costs	2,353		2		45
Equity in undistributed net income of Bank	(43,199)		(44,850)		(17,980)
Decrease (increase) in other assets	(1,861)		2,226		3,523
(Decrease) increase in other liabilities	(6,370)		(2,635)		1,353
Net cash (used in) provided by operating activities	41,662		(5,916)		2,093
Cash flows from investing activities:
Net cash paid in Sovereign acquisition	—		—		(55,949)
Net cash paid in Liberty acquisition	—		—		(24,812)
Net cash received in Green acquisition	5,818		—		—

Net cash used in investing activities	5,818		—		(80,761)
Cash flows from financing activities:
Proceeds from issuance of subordinated debt	75,000		—		—
Net proceeds from sale of common stock in public offering	—		2		56,681
Redemption of preferred stock	—		—		(24,500)
Net change in other borrowings	—		—		(4,625)
Proceeds from exercise of employee stock options	3,938		454		175

Proceeds from payments on ESOP loan	—		109		109
Offering costs paid in connection with acquisition	—		(899)		(772)
Share repurchase	(94,533)		—		—
Payment of dividends	(26,796)		—		—
Dividends paid on preferred stock	—		—		(42)
Net cash (used in) provided by financing activities	(42,391)		(334)		27,026
Net (decrease) increase in cash and cash equivalents	5,089		(6,250)		(51,642)
Cash and cash equivalents at beginning of year	40,474		46,724		98,366
Cash and cash equivalents at end of year	$	45,563	$	40,474	$	46,724

Bank Premises and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Bank premises, furniture and equipment, gross	$ 132,437	$ 88,399
Less accumulated depreciation	13,901	9,990
Bank premises, furniture and equipment, net	118,536	78,409
Depreciation	3,911	3,017	$ 1,566
Building and improvements
Property, Plant and Equipment [Line Items]
Bank premises, furniture and equipment, gross	60,959	37,526
Site improvements
Property, Plant and Equipment [Line Items]
Bank premises, furniture and equipment, gross	2,633	672
Tenant improvements
Property, Plant and Equipment [Line Items]
Bank premises, furniture and equipment, gross	744	744
Leasehold improvements
Property, Plant and Equipment [Line Items]
Bank premises, furniture and equipment, gross	5,542	4,456
Land
Property, Plant and Equipment [Line Items]
Bank premises, furniture and equipment, gross	45,878	33,393
Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Bank premises, furniture and equipment, gross	16,073	9,426
Construction in Progress
Property, Plant and Equipment [Line Items]
Bank premises, furniture and equipment, gross	$ 608	$ 2,182

Goodwill (Tables)

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Changes in the Carrying Amount of Goodwill

Changes in the carrying amount of goodwill in the accompanying consolidated balance sheets are summarized as follows:


	December 31,
	2019		2018
Balance at beginning of year	$	161,447	$	159,452
Sovereign acquisition	—		2,210
Liberty acquisition	—		(215)
Green acquisition	209,393		—

Balance at end of year	$	370,840	$	161,447

Stock and Incentive Plans - Omnibus Plan Black Scholes Assumptions - (Details) - Omnibus Plan and Veritex Green Plan	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Assumptions used to measure fair value of each option award estimated on grant date using Black-Scholes option-pricing model
Dividend yield		0.00%	0.00%
Expected volatility, minimum (as a percent)	28.85%	27.87%	30.56%
Expected volatility, maximum (as a percent)	29.65%	37.55%	33.19%
Risk-free interest rate, minimum (as a percent)	1.53%	1.06%	1.96%
Risk-free interest rate, maximum (as a percent)	2.51%	2.94%	2.32%
Minimum
Assumptions used to measure fair value of each option award estimated on grant date using Black-Scholes option-pricing model
Dividend yield	1.73%
Expected life	4 years 6 months 7 days	5 years	6 years 1 month 17 days
Maximum
Assumptions used to measure fair value of each option award estimated on grant date using Black-Scholes option-pricing model
Dividend yield	2.01%
Expected life	7 years 6 months 3 days	7 years 6 months	7 years 6 months

Stock and Incentive Plans

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Stock and Incentive Plans

2010 Stock Option and Equity Incentive Plan

In 2010, the Company adopted the 2010 Stock Option and Equity Incentive Plan (the “2010 Incentive Plan”), which the Company’s shareholders approved in 2011. The maximum number of shares of common stock that may be issued pursuant to grants or options under the 2010 Incentive Plan is 1,000,000. The 2010 Incentive Plan is administered by the Board of Directors of the Company (the “Board”) and provides for both the direct award of stock and the grant of stock options to eligible directors, officers, employees and outside consultants of the Company or its affiliates as defined in the 2010 Incentive Plan. The Company may grant either incentive stock options or nonqualified stock options as directed in the 2010 Incentive Plan.

The Board authorized grants of equity awards under the 2010 Incentive Plan consisting of 100,000 shares of direct stock awards (restricted shares) and 900,000 shares of stock options, of which 500,000 shares are or were performance-based stock options. Options were generally granted with an exercise price equal to the market price of the Company’s stock as of the date of the grant. In general, the terms of awards varied depending on whether a participant was a shareholder owning more than 10% of the total combined voting power of all classes of Company stock (a “controlling participant”). Options granted to non-controlling participants generally vested after 5 years of continuous service, with 10-year contractual terms, and forfeiture of unexercised options upon termination of employment with the Company. Other grant terms varied for controlling participants. Restricted share awards generally vested after 4 years of continuous service. The terms of the 2010 Incentive Plan provide that all unearned non-performance options and restricted shares become immediately exercisable and fully vested upon a change in control.

During the years ending December 31, 2019 , 2018 and 2017, the Company did not award any restricted stock units, non-performance based stock options or performance-based stock options or other awards under the 2010 Incentive Plan.

Stock based compensation expense is measured based upon the fair market value of the award at the grant date and is recognized ratably over the period during which the shares are earned (the requisite service period). For the years ended December 31, 2019, 2018 and 2017, approximately $3, $27 and $63 of stock compensation expense related to the 2010 Incentive Plan, respectively, was recognized in the accompanying consolidated statements of income.

A summary of the status of options granted under the 2010 Incentive Plan at December 31, 2019, 2018 and 2017 and changes during the years then ended is presented below:


	2010 Incentive Plan
	Nonperformance-based stock options
	Shares Underlying Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at December 31, 2016	325,500	$	10.15	4.56 years

Forfeited	(3,000)	$	10.00

Exercised	(17,500)	$	10.00		$	308
Outstanding at December 31, 2017	305,000	$	10.16	3.59 years



Exercised	(30,000)	10.61			$	323
Outstanding at December 31, 2018	275,000	$	10.12	2.39 years



Exercised	(17,500)	10.24			275
Outstanding at December 31, 2019	257,500	$	10.28	1.37 years	$	4,971
Options exercisable at December 31, 2019	257,500	$	10.28	1.37 years	$	4,971

As of December 31, 2019, there was no unrecognized stock compensation expense related to non-performance based stock options. As of December 31, 2018 and 2017, there was approximately $3, and $8, respectively, of unrecognized compensation expense related to non-performance-based stock options.

A summary of the status of the restricted stock units under the 2010 Incentive Plan as of December 31, 2019, 2018, and 2017 and changes during the years is presented below:


	2010 Incentive Plan
	Nonperformance-based restricted stock units
	Shares Underlying Options	Weighted Average Exercise Price
Outstanding at December 31, 2016	27,750	$	11.92

Forfeited	(2,500)	10.85
Vested into shares	(1,000)	10.85
Outstanding at December 31, 2017	24,250	$	13.19

Forfeited	(500)	10.85
Vested into shares	(23,750)	12.14
Outstanding at December 31, 2018	—	$	—



Outstanding at December 31, 2019	—	$	—

As of December 31, 2019 and 2018, there was no remaining unrecognized compensation expense related to non-vested restricted stock units. As of December 31, 2017, there was $15, of total unrecognized compensation expense related to non-vested restricted stock units.

A summary of the fair value of the Company’s stock options exercised and restricted stock units vested under the 2010 Incentive Plan as of December 31, 2019, 2018 and 2017 is presented below:


	Fair Value of Options Exercised or Restricted Stock Units Vested as of December 31,
	2019	2018	2017
Nonperformance-based stock options exercised	454	803	488
Nonperformance-based restricted stock units vested	—	713	26

Veritex 2014 Omnibus Incentive Plan (“2014 Omnibus Plan”) and Green Acquired Omnibus Plans

Accelerated Vesting of 2014 Omnibus Plan Awards

In connection with the acquisition of Green, which closed on January 1, 2019, the Company approved the full acceleration of vesting of all unvested 2014 Omnibus Plan awards on the close date. The consummation of the acquisition constituted a change in control of the Company under the 2014 Omnibus Plan. Under its terms, accelerated vesting upon a change in control is permissible, and the Board approved the full vesting of all unvested equity awards issued under the 2014 Omnibus Plan as of the consummation of the acquisition on January 1, 2019. The Company accounted for the discretionary vesting of awards as a modification of the original awards. This modification resulted in the accelerated vesting of 133,455 non-performance based restricted stock units, 51,284 performance based restricted stock units and 320,405 non-performance based stock options on January 1, 2019, the modification date. The incremental compensation cost resulting from these modifications was nominal for the year ended December 31, 2019. The accelerated vesting of awards on January 1, 2019 resulted in the immediate recognition of $5,536 of stock compensation expense for the year ended December 31, 2019. This stock compensation expense is included in merger and acquisition expenses in the condensed consolidated statements of income.

Post-combination Expense of Green Awards

In connection with the acquisition of Green and pursuant to the terms of the related definitive agreement, all of Green’s outstanding and unvested equity awards prior to the close date, including stock options and restricted stock units, became fully vested as of the close date. The acceleration of vesting of Green’s restricted stock units according to the terms of the acquisition consisted of a modification of the original awards, with exception of certain awards that had original accelerated vesting terms. The accounting treatment for the outstanding Green awards in the context of the business combination was to allocate the fair market value of Green’s stock options and restricted stock units at the close date attributable to pre-combination service to the aggregate merger consideration. The difference between the fair market value of the replacement options as well as the fully vested restricted stock units and the amount allocable to pre-combination service was considered a post-combination expense to the Company after the close date. The post combination expense to the Company as a result of the business combination was $10,129, which was immediately expensed in the post-combination financial statements for the year ended December 31, 2019, as there were no further service conditions. This compensation expense is included in merger and acquisition expenses in the condensed consolidated statements of income.

2018 Performance-Based Restricted Stock Units

The Company determined in January 2019 that 67% of the performance-based restricted stock units granted during the year ended December 31, 2018, or 12,704 units, should be forfeited in January 2019 based on the performance results of the Company’s total shareholder return (“TSR”) relative to the SNL Micro Cap US Bank Index for the performance period starting on December 31, 2017 and ending on December 31, 2018.

2019 Grants of Restricted Stock Units

In January 2019, the Company granted non-performance-based and performance-based restricted stock units under the 2014 Omnibus Plan and the Veritex (Green) 2014 Omnibus Equity Incentive Plan (“Veritex (Green) 2014 Plan”). The non-performance-based restricted stock units vest in three or five equal installments on each anniversary of the grant date. There were also non-performance-based restricted stock units granted with no vesting conditions on the grant date.

The performance-based restricted stock units granted in January 2019 cliff vest on January 1, 2022 with the performance period starting on December 31, 2018 and ending on December 31, 2021. The vesting percentage is determined based on the Company’s TSR relative to the TSR of 15 peer companies (“Peer Group”) over the performance period. Below is a table showing the range of vesting percentages for the performance-based restricted stock units based on the Company’s TSR percentile rank.


	Vesting %
Below the 24.9^th percentile of Peer Group TSR	—	%
Within the 25^th to 49.9^th percentile of Peer Group TSR	50	%
Within the 50^thto 74.9^th percentile of Peer Group TSR	100	%
At or above the 75^th percentile of Peer Group TSR	150	%

Certain non-performance and performance-based restricted stock units granted under the 2014 Omnibus Plan in January 2019 had terms requiring cash settlement of the awards unless and until the awards were approved by the shareholders of the Company. At the Company’s 2019 annual meeting of shareholders, the Company sought approval from its shareholders to authorize the amendment and restatement of the 2014 Omnibus Plan to increase the aggregate number of shares that are available for grant thereunder, among certain other terms, as well as approval of the 2019 equity awards so they may be settled in shares rather than in cash (the “Shareholder Approval”). Other terms amended in the 2014 Omnibus Plan included allowing the Compensation Committee to delegate to any of the Company’s officers certain limited authority to grant awards under the 2014 Omnibus Plan except to himself or herself. The Compensation Committee of the Board approved the amendment and restatement of the 2014 Omnibus Plan in April 2019, and the Shareholder Approval was received in May 2019. Pursuant to the 2014 Omnibus Plan amendments, the Compensation Committee also delegated to the Chief Executive Officer of the Company the authority to grant time-based restricted stock unit awards or time-based stock option awards representing up to an aggregate 100,000 shares, which are to be ratified by the Compensation Committee after the grant date. The Chief Executive Officer may not grant to any single individual (a) time-based stock option awards to any representing an aggregate of more than 10,000 shares or (b) time-based restricted stock unit awards representing an aggregate of more than 15,000 shares. Awards granted pursuant to this delegation of authority may have vesting periods of up to five years, as determined by the Chief Executive Officer.

Given the requirement to settle the 2019 equity awards in cash until Shareholder Approval was obtained, the Company accounted for these awards as liability-classified awards and measured them at fair value through the date of Shareholder Approval. On the date of Shareholder Approval, known as the modification date, the Company reclassified the liability-classified awards to equity awards at fair value.

A Monte Carlo simulation was used to estimate the fair value of performance-based restricted stock units on the grant date that include a market condition based on the Company’s TSR relative to its Peer Group, which determines the eligible number of restricted stock units to vest. A similar Monte Carlo valuation was also obtained on the date of Shareholder Approval, when the awards were reclassified from liability to equity awards.

2019 Grant of Stock Options and Tandem Stock Appreciation Rights

In January 2019, the Company granted non-performance options under the 2014 Omnibus Plan and Veritex (Green) 2014 Plan that vest in three equal installments on each anniversary of the grant date.

The fair value of each option award is estimated on the grant date using the Black-Scholes option-pricing model with the following assumptions used for the grants:

For the Year Ended December 31,

2019

2018

2017

Dividend yield

1.73% to 2.01%

—

Expected life

4.52 to 7.51 years

5.0 to 7.5 years

6.13 to 7.5 years

Expected volatility

28.85% to 29.65%

27.87% to 37.55%

30.56% to 33.19%

Risk-free interest rate

1.53% to 2.51%

1.06% to 2.94%

1.96% to 2.32%

The expected life is based on the amount of time that options granted are expected to be outstanding. The dividend yield assumption is based on the Company’s history. The expected volatility is based on historical volatility of the Company. The risk-free interest rates are based upon yields of U.S. Treasury issues with a term equal to the expected life of the option being valued.

In addition, in January 2019 the Company granted certain non-performance based stock options and tandem stock appreciation rights ("SARs"). The terms of the SARs provided that the SARs would become effective only if the Board and/or the shareholders of the Company failed to approve the issuance of shares with respect to the corresponding non-performance based stock options. In May 2019, the non-performance based stock options were approved by an affirmative vote of the Board and by shareholders at the Company's 2019 annual meeting of shareholders, at which time the SARs automatically became null and void in accordance with their terms. The corresponding non-performance based stock options will become exercisable in accordance with the vesting schedules set forth in each award agreement, which range between three and five years.

Stock Compensation Expense and Liability Award Compensation Expense

Stock compensation expense for non-vested equity awards as of December 31, 2019 under the 2014 Omnibus Plan was approximately $3,044 for the year ended December 31, 2019. The Company also incurred accelerated stock compensation expense of $5,533 for awards granted under the 2014 Omnibus Plan before January 1, 2019 and $1,418 related to non-performance based restricted stock units granted in January 2019 with no vesting conditions for which the stock compensation is included in merger and acquisition expenses in the condensed consolidated statements of income during the year ended December 31, 2019. For the years ended December 31, 2018 and December 31, 2017, the Company recognized $4,021 and $1,876 in stock compensation expense.

Stock compensation expense for options and restricted stock unit awards granted under the Veritex (Green) 2014 Plan was approximately $1,525 for the year ended December 31, 2019, excluding the post-combination stock compensation expense of $10,129 associated with all of Green’s fully vested replacement awards discussed above in this Note.

There was $1,403 of compensation expense for liability-classified awards under the 2014 Omnibus Plan during the year ended December 31, 2019. As noted above, in May 2019, following the Shareholder Approval, certain awards were modified and the classification of the awards was modified from liability to equity, resulting in a reclassification of $1,403 to additional paid-in capital in the second quarter of 2019.

On May 22, 2019, the shareholders of the Company approved a proposal to approve the 2019 Amended and Restated Omnibus Incentive Plan, which amended and restated our 2014 Omnibus Incentive Plan (the "Equity Plan"). The Equity Plan has two complementary purposes: (i) to attract and retain talented individuals to serve as officers, employees, directors and service providers; and (ii) to increase shareholder value by aligning the interests of our officers, employees, directors and service providers with the long-term interests of our company and our shareholders. The Equity Plan offers eligible officers, employees, directors and service providers the opportunity to acquire shares of our common stock, or receive monetary payments, on the potentially favorable terms provided by the Equity Plan. The Equity Plan is administered by the Compensation Committee of the Board. The maximum number of shares of the Company’s common stock that may be issued pursuant to grants or options under the Equity Plan is 1,500,000.

2014 Omnibus Plan

A summary of the status of the Company’s stock options under the 2014 Omnibus Plan as of December 31, 2019, 2018 and 2017, and changes during the years then ended, is as follows:


	2014 Omnibus Plan
	Nonperformance-based stock options
	Equity Awards										Liability Awards
	Shares Underlying Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value		Shares Underlying Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at December 31, 2016	128,366	$	15.32	8.69 years			—	—		—
Granted	212,983	26.97					—	—
Forfeited	(9,082)	19.45					—	—

Exercised	(1,544)	15.00					—	—
Outstanding at December 31, 2017	330,723	$	22.71	8.86 years			—	—		—
Granted	137,576	28.04					—	—
Forfeited	(4,083)	$	27.59				—	—

Exercised	(14,696)	15.29					—	—
Outstanding at December 31, 2018	449,520	$	24.47	8.24 years			—	$	—	—
Granted	200,561	22.72					253,633	21.38
Conversion to equity awards	253,633	21.38					(253,633)	21.38
Forfeited	(41,336)	25.51					—	—

Exercised	(12,610)	15.42			$	—	—	—			$	—
Outstanding at December 31, 2019	849,768	$	23.61	8.24 years	$	4,687	—	—		—	$	—
Options exercisable at December 31, 2019	414,338	$	24.60	7.31 years	$	1,877	—	—		—	$	—
Weighted average fair value of options granted during the period		$	22.72					$	21.38

As of December 31, 2019, 2018 and 2017 there was $2,948, $2,103 and $1,958 of total unrecognized compensation expense related to stock options awarded under the 2014 Omnibus Plan, respectively. As of December 31, 2019, there was no unrecognized compensation expense related to liability options awarded under the 2014 Omnibus Plan. The unrecognized compensation expense at December 31, 2019 is expected to be recognized over the remaining weighted average requisite service period of 2.14 years.


	2014 Omnibus Plan
	Nonperformance-based restricted stock units
	Equity Awards				Liability Awards
	Units	Weighted Average Grant Date Fair Value		Units	Weighted Average Grant Date Fair Value
Outstanding at December 31, 2016	67,956	$	13.79	—	$	—
Granted	121,125	27.19		—	—
Vested into shares	(34,342)	19.74		—	—
Forfeited	(4,017)	21.36		—	—
Outstanding at December 31, 2017	150,722	$	13.29	—	$	—
Granted	60,650	29.27		—	—
Vested into shares	(73,988)	24.44		—	—
Forfeited	(3,929)	26.29		—	—
Outstanding at December 31, 2018	133,455	$	19.67	—	$	—
Granted	127,459	22.44		165,739	21.38
Conversion to equity awards	165,739	21.38		(165,739)	21.38
Vested into shares	(250,965)	22.29		—	—

Outstanding at December 31, 2019	175,688	$	21.65	—	$	—


	2014 Omnibus Plan
	Performance-based restricted stock units
	Equity Awards				Liability Awards
	Units	Weighted Average Grant Date Fair Value		Units	Weighted Average Grant Date Fair Value
Outstanding at December 31, 2016	51,197	$	13.30
Granted	26,398	24.43
Vested into shares	(19,861)	15.34
Forfeited	(4,140)	17.91
Outstanding at December 31, 2017	53,594	$	17.68
Granted	40,269	27.59
Vested into shares	(28,109)	18.69
Forfeited	(1,766)	27.59
Outstanding at December 31, 2018	63,988	$	21.28	—	$	—
Granted	38,746	22.53		32,249	21.38
Conversion to equity awards	32,249	21.38		(32,249)	21.38
Vested into shares	(51,284)	25.31		—	—
Forfeited	(19,972)	21.38		—	—
Outstanding at December 31, 2019	63,727	$	22.76	—	$	—

As of December 31, 2019, 2018, and 2017 there was $4,329, $3,430 and $3,592 of total unrecognized compensation expense related to restricted stock units awarded under the 2014 Omnibus Plan, respectively. As of December 31, 2019, there was no unrecognized compensation related to liability restricted stock units awarded under the 2014 Omnibus Plan. The

unrecognized compensation expense at December 31, 2019 is expected to be recognized over the remaining weighted average requisite service period of 2.14 years.

A summary of the fair value of the Company’s stock options exercised and restricted stock units vested under the 2014 Omnibus Plan as of December 31, 2019, 2018 and 2017 is presented below:


	Fair Value of Options Exercised or Restricted Stock Units Vested as of December 31,
	2019	2018	2017
Nonperformance-based stock options exercised	334	383	41
Nonperformance-based restricted stock units vested	6,113	2,128	568
Performance-based restricted stock units vested	1,089	745	530

Veritex (Green) 2014 Plan

A summary of the status of the Company’s stock options under the Veritex (Green) 2014 Plan as of December 31, 2019 and changes during the year then ended is as follows:


	Veritex (Green) 2014 Plan
	Non-performance Based Stock Options
	Shares Underlying Options	Weighted Exercise Price		Weighted Average Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1, 2019	—	$	—
Converted in acquisition of Green	304,778	15.41
Granted	211,793	21.38
Forfeited	(12,673)	13.17
Exercised	(116,929)	13.60
Outstanding at December 31, 2019	386,969	$	19.30	7.86 years	$3,800
Options exercisable at December 31, 2019	176,999	16.84		6.71 years	$2,175
Options exercisable at Weighted average fair value of options granted during the period		$	18.56

As of December 31, 2019, there was $1,062 of total unrecognized compensation expense related to options awarded under the Veritex (Green) 2014 Plan. The unrecognized compensation expense at December 31, 2019 is expected to be recognized over the remaining weighted average requisite service period of 1.99 years.


	Veritex (Green) 2014 Plan
	Non-performance Based Restricted Stock Units
	Units	Weighted Average Grant Date Fair Value
Outstanding at January 1, 2019	—	$	—
Granted	116,250	21.38


Outstanding at December 31, 2019	116,250	$	21.38

A summary of the status of the Company’s performance-based restricted stock units under the Veritex (Green) 2014 Plan as of December 31, 2019 and changes during the year then ended, is as follows:


	Veritex (Green) 2014 Plan
	Performance Based Restricted Stock Units
	Units	Weighted Average Grant Date Fair Value
Outstanding at January 1, 2019	—	$	—
Granted	26,145	21.38

Forfeited	(825)	21.38
Outstanding at December 31, 2019	25,320	$	21.38

As of December 31, 2019, there was $1,991 of total unrecognized compensation related to outstanding performance-based restricted stock units awarded under the Veritex (Green) 2014 Plan to be recognized over a remaining weighted average requisite service period of 1.99 years.


	Fair Value of Options Exercised or Restricted Stock Units Vested in the year ended December 31,
	2019
Non-performance-based stock options exercised	$	3,054

Green Bancorp Inc. 2010 Stock Option Plan and Green Bancorp Inc. 2006 Stock Option Plan

In addition to the Veritex (Green) 2014 Plan discussed earlier in this Note, the Company assumed two stock and incentive plans in the Green acquisition, the Green Bancorp Inc. 2010 Stock Option Plan (“Green 2010 Plan”) and the Green Bancorp Inc. 2006 Stock Option Plan (“Green 2006 Plan”). For the Green 2010 Plan and the Green 2006 Plan, 768,628 and 11,850 of stock options, respectively, were converted in the acquisition of Green during the year ended December 31, 2019. No stock options or restricted stock units were awarded from these plans during the year ended December 31, 2019. During the year ended December 31, 2019, 190,652 stock options were exercised from the Green 2010 Plan and 11,850 stock options were exercised from the Green 2006 Plan. As of December 31, 2019, 566,936 exercisable stock options remain outstanding in the Green 2010 Plan and no exercisable stock options remain outstanding in the Green 2006 Plan.

Borrowed Funds - Narrative (Details)				12 Months Ended
Borrowed Funds - Narrative (Details)	Nov. 15, 2019	Nov. 08, 2019 USD ($)	Jan. 01, 2019 USD ($)	Dec. 31, 2019 USD ($) quarter	Dec. 31, 2013 USD ($) $ / shares shares	Dec. 31, 2018	Aug. 01, 2017 USD ($)	Dec. 31, 2012 USD ($)
Debt Instrument [Line Items]
Face amount of subordinated notes issued to related party				$ 5,000,000
Subordinated Debt
Debt Instrument [Line Items]
Face amount of subordinated notes issued to related party					$ 5,000,000
Fixed rate (as a percent)					6.00%
Affiliated Entity \| Subordinated Debt
Debt Instrument [Line Items]
Number of shares that warrants issued to related party may be converted into (in shares) \| shares					25,000,000
Exercise price of warrants issued to related party (in dollars per share) \| $ / shares					$ 11.00
Price used to calculate fair value of warrants issued to related party (in dollars per share) \| $ / shares					$ 0.80
Parkway National Capital Trust 1
Debt Instrument [Line Items]
Distribution effective rate (as a percent)				3.74%		4.64%
Parkway National Capital Trust 1 \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable distribution rate (as a percent)				1.85%
Parkway Trust Securities \| Junior Subordinated Debt
Debt Instrument [Line Items]
Debt instrument, face amount								$ 3,093,000
SovDallas Trust Securities \| Junior Subordinated Debt
Debt Instrument [Line Items]
Debt instrument, face amount							$ 8,609,000
Debt instrument, effective percentage				6.10%		6.40%
SovDallas Trust Securities \| Junior Subordinated Debt \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Interest on securities, addition to LIBOR				4.00%
Patriot I Trust Securities \| Junior Subordinated Debt
Debt Instrument [Line Items]
Debt instrument, face amount			$ 5,155,000
Debt instrument, effective percentage				3.84%
Patriot I Trust Securities \| Junior Subordinated Debt \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate			1.85%
Patriot II Trust Securities \| Junior Subordinated Debt
Debt Instrument [Line Items]
Debt instrument, face amount			$ 17,011,000
Debt instrument, effective percentage				3.69%
Patriot II Trust Securities \| Junior Subordinated Debt \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate			1.80%
The Notes \| Subordinated Debt
Debt Instrument [Line Items]
Debt instrument, face amount				$ 35,000,000
Interest rate, stated percentage				8.50%
The Notes \| Subordinated Debt \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate			6.685%
New Notes \| Subordinated Debt
Debt Instrument [Line Items]
Debt instrument, face amount		$ 75,000,000
Basis spread on variable rate	3.47%
Interest rate, stated percentage		4.75%
Redemption price, percentage		100.00%
Maximum
Debt Instrument [Line Items]
Interest distribution quarterly periods \| quarter				5

Parent Company Only Financial Statements - Income Statement (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Condensed Income Statements, Captions [Line Items]
Other									$ 2,949	$ 855	$ 8
Total interest and dividend income	$ 91,742	$ 95,643	$ 96,177	$ 95,224	$ 38,182	$ 37,920	$ 34,857	$ 34,110	378,786	145,069	79,552
Salaries and employee benefits									72,791	31,138	20,828
Merger and acquisition expense									38,960	5,220	2,691
Total noninterest expense	36,284	34,630	39,896	66,993	17,538	18,246	16,169	17,306	177,803	69,259	42,789
Income before income tax expense									115,860	50,237	28,181
Income tax expense	$ 8,168	$ 7,595	$ 7,369	$ 1,989	$ 3,587	$ 1,448	$ 2,350	$ 3,511	25,121	10,896	13,029
Net income									90,739	39,341	15,152
Veritex Holdings, Inc.
Condensed Income Statements, Captions [Line Items]
Cash dividends from subsidiary									56,750	0	0
Excess of earnings over dividend from subsidiary									43,199	44,850	17,980
Other									50	20	8
Total interest and dividend income									99,999	44,870	17,988
Interest on borrowings									4,672	974	598
Salaries and employee benefits									790	853	712
Merger and acquisition expense									5,739	4,415	2,256
Total noninterest expense									11,201	6,242	3,566
Income before income tax expense									88,798	38,628	14,422
Income tax expense									(1,941)	(713)	(730)
Net income									$ 90,739	$ 39,341	$ 15,152

Business Combinations - Acquired Assets and Assumed Liabilities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018	Dec. 31, 2017
Assets
Goodwill	$ 370,840		$ 161,447	$ 159,452
Green Bancorp, Inc.
Assets
Cash and cash equivalents		$ 112,720
Investment securities		660,792
Equity securities		12,322
Other Investments		29,490
Loans held for sale		9,360
Loans held for investment		3,245,248
Accrued interest receivable		11,395
Bank owned life insurance		56,841
Bank premises, furniture and equipment		36,855
Investment in unconsolidated subsidiaries		666
Intangible assets		65,718
Goodwill		209,393
Other assets		11,124
Right of use asset		9,373
Deferred Taxes		11,783
Current taxes		1,812
Branch assets held for sale		85,307
Total assets		4,570,199
Liabilities
Non-interest-bearing deposits		825,364
Interest-bearing deposits		1,300,825
Certificates and other time deposits		1,346,915
Accounts payable and other accrued expenses		26,491
Lease liability		9,373
Accrued interest payable		5,181
Securities sold under agreements to repurchase		3,226
Accounts payable and accrued expenses		300,000
Subordinated debentures and subordinated notes		56,233
Branch liabilities held for sale		52,682
Total liabilities		3,926,290
Measurement Period Adjustments
Investment securities	(240)
Loans held for investment	(244)
Accrued interest receivable	(278)
Bank premises, furniture and equipment	(2,571)
Goodwill	2,572
Other assets	404
Deferred taxes	248
Current taxes	13
Total assets	(96)
Accounts payable and other accrued expenses	(96)
Total liabilities	$ (96)
Scenario, Previously Reported \| Green Bancorp, Inc.
Assets
Cash and cash equivalents		112,720
Investment securities		661,032
Equity securities		12,322
Other Investments		29,490
Loans held for sale		9,360
Loans held for investment		3,245,492
Accrued interest receivable		11,673
Bank owned life insurance		56,841
Bank premises, furniture and equipment		39,426
Investment in unconsolidated subsidiaries		666
Intangible assets		65,718
Goodwill		206,821
Other assets		10,720
Right of use asset		9,373
Deferred Taxes		11,535
Current taxes		1,799
Branch assets held for sale		85,307
Total assets		4,570,295
Liabilities
Non-interest-bearing deposits		825,364
Interest-bearing deposits		1,300,825
Certificates and other time deposits		1,346,915
Accounts payable and other accrued expenses		26,587
Lease liability		9,373
Accrued interest payable		5,181
Securities sold under agreements to repurchase		3,226
Accounts payable and accrued expenses		300,000
Subordinated debentures and subordinated notes		56,233
Branch liabilities held for sale		52,682
Total liabilities		$ 3,926,386

Stock and Incentive Plans - Omnibus Plan - Restricted Stock Units (Details) - Omnibus Plan - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Nonperformance-based stock options
Shares Underlying Options
Nonvested at the beginning of the period (in shares)	133,455	150,722	67,956
Granted (in shares)	127,459	60,650	121,125
Conversion to equity awards (in shares)	165,739
Vested into shares (in shares)	(250,965)	(73,988)	(34,342)
Forfeited (in shares)		(3,929)	(4,017)
Nonvested at the end of the period (in shares)	175,688	133,455	150,722
Weighted Average Exercise Price
Nonvested at the beginning of the period (in dollars per share)	$ 19.67	$ 13.29	$ 13.79
Granted (in dollars per share)	22.44	29.27	27.19
Conversion to equity awards (in dollars per share)	21.38
Vested into shares (in dollars per share)	22.29	24.44	19.74
Forfeited (in dollars per share)		26.29	21.36
Nonvested at the end of the period (in dollars per share)	$ 21.65	$ 19.67	$ 13.29
Non-performance based liability restricted stock units
Shares Underlying Options
Nonvested at the beginning of the period (in shares)	0	0	0
Granted (in shares)	165,739	0	0
Conversion to equity awards (in shares)	(165,739)
Vested into shares (in shares)	0	0	0
Forfeited (in shares)		0	0
Nonvested at the end of the period (in shares)	0	0	0
Weighted Average Exercise Price
Nonvested at the beginning of the period (in dollars per share)	$ 0	$ 0	$ 0
Granted (in dollars per share)	21.38	0	0
Conversion to equity awards (in dollars per share)	21.38
Vested into shares (in dollars per share)	0	0	0
Forfeited (in dollars per share)		0	0
Nonvested at the end of the period (in dollars per share)	$ 0	$ 0	$ 0
Performance Based Restricted Stock Units
Shares Underlying Options
Nonvested at the beginning of the period (in shares)	63,988	53,594	51,197
Granted (in shares)	38,746	40,269	26,398
Conversion to equity awards (in shares)	32,249
Vested into shares (in shares)	(51,284)	(28,109)	(19,861)
Forfeited (in shares)	(19,972)	(1,766)	(4,140)
Nonvested at the end of the period (in shares)	63,727	63,988	53,594
Weighted Average Exercise Price
Nonvested at the beginning of the period (in dollars per share)	$ 21.28	$ 17.68	$ 13.30
Granted (in dollars per share)	22.53	27.59	24.43
Conversion to equity awards (in dollars per share)	21.38
Vested into shares (in dollars per share)	25.31	18.69	15.34
Forfeited (in dollars per share)	21.38	27.59	17.91
Nonvested at the end of the period (in dollars per share)	$ 22.76	$ 21.28	$ 17.68
Performance based restricted stock units
Shares Underlying Options
Nonvested at the beginning of the period (in shares)	0
Granted (in shares)	32,249
Conversion to equity awards (in shares)	(32,249)
Vested into shares (in shares)	0
Forfeited (in shares)	0
Nonvested at the end of the period (in shares)	0	0
Weighted Average Exercise Price
Nonvested at the beginning of the period (in dollars per share)	$ 0
Granted (in dollars per share)	21.38
Conversion to equity awards (in dollars per share)	21.38
Vested into shares (in dollars per share)	0
Forfeited (in dollars per share)	0
Nonvested at the end of the period (in dollars per share)	$ 0	$ 0
Restricted stock units
Additional disclosures
Unrecognized compensation expense (in dollars)	$ 4,329,000	$ 3,430,000	$ 3,592,000
Requisite service period to recognize compensation cost	2 years 1 month 20 days
Liability Restricted Stock Units
Additional disclosures
Unrecognized compensation expense (in dollars)	$ 0

Capital Requirements and Restrictions on Retained Earnings (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Comparison of the Company's and Bank's Actual Capital Amounts and Ratios to Required Capital Amounts and Ratios

A comparison of the Company’s and Bank’s actual capital amounts and ratios to required capital amounts and ratios is presented in the following table:


	Actual						For Capital Adequacy Purposes							To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount			Ratio		Amount		Ratio
As of December 31, 2019
Total capital (to risk-weighted assets)
Company	$	917,939	13.10	%	$	560,573		8.0	%	n/a		n/a
Bank	870,838		12.44		560,024			8.0		$	700,031	10.0	%
Tier 1 capital (to risk-weighted assets)
Company	771,679		11.02		420,152			6.0		n/a		n/a
Bank	840,126		12.00		420,063			6.0		560,084		8.0
Common equity tier 1 (to risk-weighted assets)
Company	742,675		10.60		315,287			4.5		n/a		n/a
Bank	840,126		12.00		315,047			4.5		455,068		6.5
Tier 1 capital (to average assets)
Company	771,679		10.17		303,512			4.0		n/a		n/a
Bank	840,126		11.07		303,569			4.0		379,461		5.0
As of December 31, 2018
Total capital (to risk-weighted assets)
Company	$	394,419	12.98	%	$	243,093		8.0	%	n/a		n/a
Bank	353,640		11.64		243,052			8.0		$	303,814	10.0	%
Tier 1 capital (to risk-weighted assets)
Company	370,175		12.18		182,352			6.0		n/a		n/a
Bank	334,385		11.01		182,226			6.0		242,968		8.0
Common equity tier 1 (to risk-weighted assets)
Company	358,473		11.80		136,706			4.5		n/a		n/a
Bank	334,385		11.01		136,670			4.5		197,412		6.5
Tier 1 capital (to average assets)
Company	370,175		12.04		122,982			4.0		n/a		n/a
Bank	334,385		10.87		123,049			4.0		153,811		5.0

Derivative Financial Instruments

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

The Company primarily uses derivatives to manage exposure to market risk, including interest rate risk and credit risk and to assist customers with their risk management objectives. Management will designate certain derivatives as hedging instruments in a qualifying hedge accounting relationship. The Company’s remaining derivatives consist of derivatives held for customer accommodation or other purposes.

The fair value of derivative positions outstanding is included in other assets and accounts payable and accrued expenses on the accompanying consolidated balance sheets and in the net change in each of these financial statement line items in the accompanying consolidated statements of cash flows. For derivatives not designated as hedging instruments, gains and losses due to changes in fair value are included in noninterest income and the operating section of the consolidated statement of cash flows. For derivatives designated as hedging instruments, the entire change in the fair value related to the derivative instrument is recognized as a component of other comprehensive income and subsequently reclassified into interest income when the forecasted transaction affects income. The notional amounts and estimated fair values as of December 31, 2019 were as shown in the table below. The Company did not have hedging or non-hedging derivative instruments as of December 31, 2018.


	December 31, 2019
			Estimated Fair Value
	Notional Amount		Asset Derivative		Liability Derivative
Derivatives designated as hedging instruments (cash flow hedges):
Commercial loan interest rate floor	$	275,000	$	3,353	$	—
Total derivatives designated as hedging instruments	275,000		3,353		—

Derivatives not designated as hedging instruments:
Financial institution counterparty:
Interest rate swaps	222,394		105		4,736
Interest rate caps and collars	90,093		11		—
Commercial customer counterparty:
Interest rate swaps	222,394		4,393		84
Interest rate caps and collars	90,093		—		11
Total derivatives not designated as hedging instruments	624,974		4,509		4,831
Offsetting derivative assets/liabilities			(2,895)		(2,895)
Total derivatives	$	899,974	$	4,967	$	1,936

Pre-tax gain (loss) included in the condensed consolidated statements of income and related to derivative instruments for the year ended December 31, 2019 was as follows:


	For the Year Ended December 31, 2019
	Gain recognized in other comprehensive income on cash flow derivative		Loss recognized in interest income on cash flow derivative (amount excluded from effectiveness testing)		Loss recognized in noninterest income
Derivatives designated as hedging instruments (cash flow hedges):
Commercial loan interest rate floors	$	1,497	$	(808)	$	—

Derivatives not designated as hedging instruments:
Interest rate swaps, caps and collars	$	—	$	—	$	550

Cash Flow Hedges

In May 2019, the Company entered into a $275,000 notional interest rate floor with a two-year term. The interest rate floor has a purchased floor strike of 2.43%. The purchased option price was $2,665, which is reflected within accrued interest receivable and other assets in the consolidated statements of cash flows.

Interest Rate Swap, Floor, Cap and Collar Agreements Not Designated as Hedging Derivatives

In order to accommodate the borrowing needs of certain commercial customers, the Company has entered into interest rate swap or cap agreements with those customers. These interest rate derivative contracts effectively allow the Company’s customers to convert a variable rate loan into a fixed rate loan. In order to offset the exposure and manage interest rate risk, at the time an agreement was entered into with a customer, the Company entered into an interest rate swap or cap with a correspondent bank counterparty with offsetting terms. These derivative instruments are not designated as accounting hedges and changes in the net fair value are recognized in noninterest income or expense. Because the Company acts as an intermediary for its customers, changes in the fair value of the underlying derivative contracts substantially offset each other and do not have a material impact on the Company’s results of operations. The fair value amounts are included in other assets and other liabilities.

The following is a summary of the interest rate swaps outstanding as of December 31, 2019. The Company did not have interest rate swaps outstanding as of December 31, 2018.


	December 31, 2019
	Notional Amount		Fixed Rate	Floating Rate	Maturity	Fair Value
Non-hedging derivative instruments:
Customer interest rate derivative:
Interest rate swaps - receive fixed/pay floating	$	222,394	2.944 - 8.470%	LIBOR 1 month + 0% - 5.00% PRIME H15 - 0.250%	Wtd. Avg. 3.3 years	$	(4,632)
Interest rate caps and collars	$	90,093	2.430% / 5.80	LIBOR 1 month + 0% - 3.75%	Wtd. Avg. 1.5 years	$	11

Correspondent interest rate derivative:
Interest rate swaps - pay fixed/receive floating	$	222,394	2.944 - 8.470%	LIBOR 1 month + 0% - 5.00% PRIME H15 - 0.250%	Wtd. Avg. 3.3 years	$	4,309
Interest rate caps and collars	$	90,093	3.000% / 5.800%	LIBOR 1 month + 0% - 3.75%	Wtd. Avg. 1.5 years	$	(11)

Intangible Assets - Future Amortization Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Estimated aggregate future amortization expense [Abstract]
2020	$ 11,136
2021	10,631
2022	10,445
2023	10,307
2024	10,217
Thereafter	19,527
Net intangible assets	$ 72,263	$ 15,896

Stock and Incentive Plans - Vesting (Details)	12 Months Ended
Stock and Incentive Plans - Vesting (Details)	Dec. 31, 2019 installment company shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, installments \| installment	3
Number of peer companies \| company	15
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, installments \| installment	3
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, installments \| installment	5
Performance Based Restricted Stock Units \| Below the 24.9th percentile of Peer Group TSR
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of total stockholder return relative to peer companies	24.90%
Vesting %	0.00%
Performance Based Restricted Stock Units \| Within the 25th to 49.9th percentile of Peer Group TSR
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting %	50.00%
Performance Based Restricted Stock Units \| Within the 50th the 74.9th percentile of Peer Group TSR
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting %	100.00%
Performance Based Restricted Stock Units \| At or above the 75th percentile of Peer Group TSR
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of total stockholder return relative to peer companies	75.00%
Vesting %	150.00%
Performance Based Restricted Stock Units \| Minimum \| Within the 25th to 49.9th percentile of Peer Group TSR
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of total stockholder return relative to peer companies	25.00%
Performance Based Restricted Stock Units \| Minimum \| Within the 50th the 74.9th percentile of Peer Group TSR
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of total stockholder return relative to peer companies	50.00%
Performance Based Restricted Stock Units \| Maximum \| Within the 25th to 49.9th percentile of Peer Group TSR
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of total stockholder return relative to peer companies	49.90%
Performance Based Restricted Stock Units \| Maximum \| Within the 50th the 74.9th percentile of Peer Group TSR
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of total stockholder return relative to peer companies	74.90%
Omnibus Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)	1,500,000
Vesting period	5 years
Omnibus Plan \| Performance Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)	100,000
Omnibus Plan \| Time-based stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)	10,000
Omnibus Plan \| Time-based restricted stock unit awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)	15,000

Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	Preferred Stock	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Unallocated Employee Stock Ownership Plan Shares	Treasury Stock	Liberty acquisition	Liberty acquisition Common Stock	Liberty acquisition Additional Paid-In Capital	Sovereign Bank	Sovereign Bank Preferred Stock	Sovereign Bank Additional Paid-In Capital	Green Bancorp, Inc.	Green Bancorp, Inc. Common Stock	Green Bancorp, Inc. Additional Paid-In Capital
Stockholders' equity, beginning balance at Dec. 31, 2016	$ 239,088	$ 0	$ 152	$ 211,173	$ 29,290	$ (1,248)	$ (209)	$ (70)
Stockholders' equity, beginning balance (in shares) at Dec. 31, 2016			15,195,328					10,000
Increase (Decrease) in Stockholders' Equity
Restricted stock units vested, net (in shares)			43,602
Restricted stock units vested, net	(312)			(312)
Exercise of employee stock options (in shares)			17,949
Exercise of employee stock options	169			169
Stock issued for acquisition of bank, net of offering cost (in shares)			5,117,642							1,449,944
Stock issued for acquisition of bank, net of offering cost	135,947		$ 51	135,896					$ 40,003	$ 14	$ 39,989
Sale of common stock in public offering, net of offering costs of $288 (in shares)			2,285,050
Sale of common stock in public offering, net of offering costs of $288	56,681		$ 24	56,657
Issuance of preferred stock, series D in connection with the acquisition of Sovereign Bancshares, Inc.												$ 49,000	$ 24,500	$ 24,500
Redemption of preferred stock	(49,000)	(24,500)		(24,500)
Stock based compensation	1,939			1,939
ESOP Shares Allocated	109			6			103
Net income	15,152				15,152
Preferred stock dividends	(42)				(42)
Reclassification of certain deferred tax effects - ASU 2018-01					227	(227)
Other comprehensive income (loss)	195					195
Stockholders' equity, ending balance at Dec. 31, 2017	488,929	0	$ 241	445,517	44,627	(1,280)	(106)	$ (70)
Stockholders' equity, ending balance (in shares) at Dec. 31, 2017			24,109,515					10,000
Increase (Decrease) in Stockholders' Equity
Restricted stock units vested, net (in shares)			105,765
Restricted stock units vested, net	(593)		$ 2	(595)
Exercise of employee stock options (in shares)			38,614
Exercise of employee stock options	454			454
Redemption of preferred stock		0
Stock based compensation	4,048			4,048
ESOP Shares Allocated	109			3			106
Net income	39,341				39,341
Other comprehensive income (loss)	(1,650)					(1,650)
Stockholders' equity, ending balance at Dec. 31, 2018	$ 530,638	0	$ 243	449,427	83,968	(2,930)	0	$ (70)
Stockholders' equity, ending balance (in shares) at Dec. 31, 2018	24,253,894		24,253,894					10,000
Increase (Decrease) in Stockholders' Equity
Restricted stock units vested, net (in shares)			246,303													497,594
Restricted stock units vested, net	$ (1,346)		$ 3	(1,349)											$ 12,484	$ 5	$ 12,479
Exercise of employee stock options (in shares)			335,832
Exercise of employee stock options	3,938		$ 3	3,935
Stock issued for acquisition of bank, net of offering cost (in shares)																29,532,957
Stock issued for acquisition of bank, net of offering cost															$ 630,627	$ 295	$ 630,332
Redemption of preferred stock		0
Stock buyback (in shares)			(3,802,711)					(3,802,711)
Stock buyback	(94,533)							$ (94,533)
Stock based compensation	21,652			21,652
Reclassification of liability-classified awards to equity awards	1,403			1,403
Net income	90,739				90,739
Dividends	(26,796)				(26,796)
Other comprehensive income (loss)	21,991					21,991
Stockholders' equity, ending balance at Dec. 31, 2019	$ 1,190,797	$ 0	$ 549	$ 1,117,879	$ 147,911	$ 19,061	$ 0	$ (94,603)
Stockholders' equity, ending balance (in shares) at Dec. 31, 2019	51,063,869		51,063,869					3,812,711

Stock and Incentive Plans - Veritex Green Omnibus Plan Options (Details) - Veritex Green Omnibus Plan - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Nonperformance-based stock options
Shares Underlying Options
Outstanding at beginning of period (in shares)	0
Converted in acquisition of Green (in shares)	304,778
Granted during the period (in shares)	211,793
Forfeited (in shares)	(12,673)
Exercised (in shares)	(116,929)
Outstanding at the end of period (in shares)	386,969	0
Options exercisable at end of period (in shares)	176,999
Weighted Average Exercise Price
Outstanding at beginning of period (in dollars per share)	$ 0
Converted in acquisition of Green (in dollars per share)		$ 15.41
Granted during the period (in dollars per share)	21.38
Forfeited (in dollars per share)	13.17
Exercised (in dollars per share)	13.60
Outstanding at the end of period (in dollars per share)	19.30	$ 0
Options exercisable at end of period (in dollars per share)	16.84
Weighted average fair value of options granted during the period (in dollars per share)	$ 18.56
Weighted Average Contractual Term
Outstanding at beginning of year	7 years 10 months 9 days
Exercisable	6 years 8 months 15 days
Aggregate Intrinsic Value
Aggregate intrinsic value of outstanding stock options (in dollars)	$ 3,800
Options exercisable, intrinsic value	2,175
Stock option
Aggregate Intrinsic Value
Unrecognized compensation expense (in dollars)	$ 1,062
Requisite service period to recognize compensation cost	1 year 11 months 26 days

Securities (Tables)

12 Months Ended

Dec. 31, 2019

Investments, Debt and Equity Securities [Abstract]

Equity Securities, FV-NI

The gross unrealized gain recognized on equity securities with readily determinable fair values recorded in other noninterest income in the Company’s consolidated statements of income were as follows:


	2019		2018
Unrealized gain recognized on equity securities with a readily determinable fair value	$	325	$	—

Schedule of Carrying Amount and Approximate Fair Values of Available-For-Sale Securities

The amortized cost, related gross unrealized gains and losses, and the fair value of available for sale and held to maturity securities are as follows:


	December 31, 2019
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
Available for Sale

Corporate bonds	$	76,997	$	1,974	$	—	$	78,971
Municipal securities	74,956		3,724		—		78,680
Mortgage-backed securities	288,938		9,512		260		298,190
Collateralized mortgage obligations	431,276		6,465		1,503		436,238
Asset-backed securities	69,964		2,322		—		72,286
	$	942,131	$	23,997	$	1,763	$	964,365

Held to maturity
Mortgage-backed securities	$	8,621	$	452	$	—	$	9,073
Collateralized mortgage obligations	1,809		43		—		1,852
Municipal securities	22,535		1,350		—		23,885
	$	32,965	$	1,845	$	—	$	34,810


	December 31, 2018
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
Available for Sale
U.S. government agencies	$	9,096	$	—	$	118	$	8,978
Corporate bonds	26,518		84		134		26,468
Municipal securities	40,275		10		338		39,947
Mortgage-backed securities	97,117		101		2,167		95,051
Collateralized mortgage obligations	92,906		197		1,344		91,759
Asset-backed securities	492		—		—		492
	$	266,404	$	392	$	4,101	$	262,695

Schedule of Investment Securities That Have Been in a Continuous Unrealized Loss Position


	December 31, 2019
	Less Than 12 Months						12 Months or More						Totals
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Loss		Value		Loss		Value		Loss
Available for Sale


Municipal securities	$	468	$	1	$	—	$	—	$	468	$	1
Mortgage-backed securities	28,883		370		—		—		28,883		370
Collateralized mortgage obligations	109,749		1,392		—		—		109,749		1,392

	$	139,100	$	1,763	$	—	$	—	$	139,100	$	1,763


	December 31, 2018
	Less Than 12 Months						12 Months or More						Totals
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Loss		Value		Loss		Value		Loss
Available for Sale
U.S. government agencies	$	5,671	$	68	$	3,306	$	50	$	8,977	$	118
Corporate bonds	6,689		134		—		—		6,689		134
Municipal securities	16,043		92		10,428		246		26,471		338
Mortgage-backed securities	24,277		279		59,637		1,888		83,914		2,167
Collateralized mortgage obligations	18,765		71		42,536		1,273		61,301		1,344

	$	71,445	$	644	$	115,907	$	3,457	$	187,352	$	4,101

Schedule of Amortized Costs and Estimated Fair Values of Securities Available-For-Sale, by Contractual Maturity

Therefore, these securities are not included in the maturity categories below.


	December 31, 2019
	Available For Sale						Held to Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value

Due from one year to five years	$	4,904	$	5,100	$	—	$	—
Due from five years to ten years	74,596		76,403		1,204		1,219
Due after ten years	72,453		76,148		21,331		22,666
	151,953		157,651		22,535		23,885
Mortgage-backed securities and collateralized mortgage obligations	720,214		734,428		10,430		10,925
Asset-backed securities	69,964		72,286		—		—
	$	942,131	$	964,365	$	32,965	$	34,810


	December 31, 2018
	Available For Sale
	Amortized		Fair
	Cost		Value
Due in one year or less	$	2,963	$	2,966
Due from one year to five years	34,933		34,854
Due from five years to ten years	19,682		19,468
Due after ten years	18,311		18,105
	75,889		75,393
Mortgage-backed securities and collateralized mortgage obligations	190,023		186,810
Asset-backed securities	492		492
	$	266,404	$	262,695

Schedule of Proceeds From Sales of Investment Securities Available-For-Sale and Gross Gains and Losses

Proceeds from sales of investment securities available for sale and gross realized gains and losses for the years ended December 31, 2019, 2018 and 2017 were as follows:


	December 31,
	2019		2018		2017
Proceeds from sales	$	567,718	$	40,822	$	159,869
Gross realized gains	532		335		398
Gross realized losses	2,384		399		176

Business Combinations - Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Business Combinations [Abstract]
Net interest income	$ 274,031	$ 254,350
Net income	$ 108,490	$ 38,352
Basic earnings per share (in USD per share)	$ 2.00	$ 0.71
Diluted earnings per share (in USD per share)	$ 1.97	$ 0.70

Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Deferred tax assets:
Allowance for loan losses	$ 6,232	$ 3,985
Equity compensation	3,703	916
Purchase premium/loan discounts	9,347	2,176
Net unrealized gain on securities available for sale	0	779
Lease liability	2,960
Purchase securities	2,945	0
Other	3,930	1,336
Total deferred tax assets	29,117	9,192
Deferred tax liabilities:
Intangibles	13,527	2,187
Bank premises and equipment	4,811	1,959
Right of use asset	2,773
Net unrealized gain on securities available for sale	4,669	0
Other	1,904	896
Total deferred tax liabilities	27,684	5,042
Net deferred tax asset	$ 1,433	$ 4,150

Capital Requirements and Restrictions on Retained Earnings

12 Months Ended

Dec. 31, 2019

Capital Requirements and Restrictions on Retained Earnings

Under applicable U.S. banking laws, there are legal restrictions limiting the amount of dividends the Company can declare. Approval of the regulatory authorities is required if the effect of the dividends declared would cause regulatory capital of the Company to fall below specified minimum levels.

The Company on a consolidated basis and the Bank are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements triggers certain mandatory and may lead to additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classification are also subject to qualitative judgments by the regulators about components of capital, risk weightings of assets, and other factors.

In July 2013, the Federal Reserve published final rules for the adoption of the Basel III regulatory capital framework (the “Basel III Capital Rules”). The Basel III Capital Rules, among other things, (i) introduce a new capital measure called “Common Equity Tier 1” (“CET1”), (ii) specify that Tier 1 capital consist of Common Equity Tier 1 and “Additional Tier 1 Capital” instruments meeting specified requirements, (iii) define Common Equity Tier 1 narrowly by requiring that most deductions/adjustments to regulatory capital measures be made to Common Equity Tier 1 and not to the other categories of capital and (iv) expand the scope of the deductions/adjustments as compared to existing regulations. The Basel III Capital Rules became effective for the Company on January 1, 2015, with certain transition provisions to be fully phased in by January 1, 2019.

The Basel III Capital Rules also call for a capital conservation buffer that is added to each of the required capital ratios. The capital conservation buffer is designed to absorb losses during periods of economic stress and effectively increases the minimum required risk-weighted capital ratios. Failure to satisfy the buffer requirement will result in limits on capital distributions and discretionary bonus payments. In 2018, the buffer requirement was 1.875%, and the fully phased-in requirement of 2.5% was effective January 1, 2019.

The Basel III Capital Rules establish quantitative measures to ensure capital adequacy. The Bank must maintain minimum ratios (set forth in the table below) of total Tier 1, and CET1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined). Management believes, as of December 31, 2019 and December 31, 2018 that the Bank met all capital adequacy requirements to which it was subject.

Starting in January 2016, implementation of the capital conservation buffer became effective for the Company beginning at the 0.625% level and increasing 0.625% each year thereafter, until it reached 2.50% on January 1, 2019. The capital conservation buffer is designed to absorb losses during periods of economic stress and effectively increases the minimum required risk-weighted capital ratios.

As of December 31, 2019 and December 31, 2018, the Company’s and the Bank’s capital ratios exceeded those levels necessary to be categorized as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well capitalized”, the Company and the Bank must maintain minimum total risk- based, CET1, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table. There are no conditions or events since December 31, 2019 that management believes have changed the Company’s category.

A comparison of the Company’s and Bank’s actual capital amounts and ratios to required capital amounts and ratios is presented in the following table:


	Actual						For Capital Adequacy Purposes							To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount			Ratio		Amount		Ratio
As of December 31, 2019
Total capital (to risk-weighted assets)
Company	$	917,939	13.10	%	$	560,573		8.0	%	n/a		n/a
Bank	870,838		12.44		560,024			8.0		$	700,031	10.0	%
Tier 1 capital (to risk-weighted assets)
Company	771,679		11.02		420,152			6.0		n/a		n/a
Bank	840,126		12.00		420,063			6.0		560,084		8.0
Common equity tier 1 (to risk-weighted assets)
Company	742,675		10.60		315,287			4.5		n/a		n/a
Bank	840,126		12.00		315,047			4.5		455,068		6.5
Tier 1 capital (to average assets)
Company	771,679		10.17		303,512			4.0		n/a		n/a
Bank	840,126		11.07		303,569			4.0		379,461		5.0
As of December 31, 2018
Total capital (to risk-weighted assets)
Company	$	394,419	12.98	%	$	243,093		8.0	%	n/a		n/a
Bank	353,640		11.64		243,052			8.0		$	303,814	10.0	%
Tier 1 capital (to risk-weighted assets)
Company	370,175		12.18		182,352			6.0		n/a		n/a
Bank	334,385		11.01		182,226			6.0		242,968		8.0
Common equity tier 1 (to risk-weighted assets)
Company	358,473		11.80		136,706			4.5		n/a		n/a
Bank	334,385		11.01		136,670			4.5		197,412		6.5
Tier 1 capital (to average assets)
Company	370,175		12.04		122,982			4.0		n/a		n/a
Bank	334,385		10.87		123,049			4.0		153,811		5.0

Dividend Restrictions — Dividends paid by the Bank are subject to certain restrictions imposed by regulatory agencies. The Basel III Capital Rules further limit the amount of dividends that may be paid by the Bank. Dividends of $26,796, or $0.125 per outstanding share on the applicable record date, were paid by the Bank to the Company during the year ended December 31, 2019. No dividends were paid by the Bank to the Company during the year ended December 31, 2018.

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

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