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vbtx-20210126

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (date of earliest event reported): January 26, 2021

VERITEX HOLDINGS, INC.

(Exact name of Registrant as specified in its charter)

Texas

001-36682

27-0973566

(State or other jurisdiction of
incorporation or organization)

(Commission File Number)

(I.R.S. Employer
Identification Number)

8214 Westchester Drive, Suite 800

Dallas, Texas 75225

(Address of principal executive offices)

(972) 349-6200

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Common Stock, par value $0.01 per share

VBTX

Nasdaq Global Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).


Emerging growth company			☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Item 2.02 Results of Operations and Financial Condition

Item 7.01 Regulation FD Disclosure

On January 26, 2021, Veritex Holdings, Inc. (the “Company”), the holding company for Veritex Community Bank, a Texas state chartered bank, issued a press release describing its results of operations for the fourth quarter and year ended December 31, 2020. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

On Wednesday, January 27, 2021 at 8:30 a.m., Central Time, the Company will host an investor conference call and webcast to review its fourth quarter and year end financial results. The webcast will include a slide presentation that consists of information regarding the Company’s operating and growth strategies and financial performance. The presentation materials will be posted on the Company’s website on January 26, 2021. The presentation materials are attached hereto as Exhibit 99.2, which is incorporated by reference.

As provided in General Instruction B.2 to Form 8-K, the information furnished in Item 2.02, Item 7.01, Exhibit 99.1 and Exhibit 99.2 of this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and such information shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 8.01 Other Events

On January 26, 2021, the Company issued a press release announcing the declaration of a quarterly cash dividend of $0.17 per share on its outstanding common stock. The dividend will be paid on or after February 18, 2021 to shareholders of record as of the close of business on February 4, 2021. The press release is attached hereto as Exhibit 99.3 and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.


Exhibit Number						Description
99.1						Press release, dated January 26, 2021
99.2						Presentation materials
99.3						Press release, dated January 26, 2021
104						Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


Veritex Holdings, Inc.

By:						/s/ C. Malcolm Holland, III
						C. Malcolm Holland, III
						Chairman and Chief Executive Officer
Date:						January 26, 2021

Document

Exhibit 99.1

Veritex Holdings, Inc. Reports Fourth Quarter and Year-End 2020 Operating Results

Dallas, TX — January 26, 2021 —Veritex Holdings, Inc. (“Veritex” or the “Company”) (Nasdaq: VBTX), the holding company for Veritex Community Bank, today announced the results for the fourth quarter and full year of 2020. Net income for the quarter ended December 31, 2020 totaled $22.8 million, or $0.46 diluted earnings per share ("EPS"), compared to $22.9 million, or $0.46 diluted EPS, for the quarter ended September 30, 2020 and $29.1 million, or $0.56 diluted EPS, for the quarter ended December 31, 2019. Operating earnings for the quarter ended December 31, 2020 totaled $29.7 million, or $0.60 diluted operating EPS1, compared to $22.9 million, or $0.46 diluted operating EPS1, for the quarter ended September 30, 2020 and $30.3 million, or $0.58 diluted operating EPS1, for the quarter ended December 31, 2019.

“2020 certainly proved to be a very challenging year given the economic disruption from the pandemic. Yet through it all, the team executed well and delivered strong results,” said C Malcolm Holland, III, the Company’s Chairman and Chief Executive Officer. The 4th quarter reflects continued loan growth, strong deposit results, higher capital levels and continued strong pre-tax, pre-provision operating earnings. Our business momentum and loan pipelines are the strongest we have seen since 2019. This momentum is supported by the recovering economy, the strength of the Texas economy and our significant investment during 2020 in new team members to support our continued success.”

Fourth Quarter and 2020 Highlights:

•Net income of $22.8 million, or $0.46 diluted EPS, compared to $22.9 million, or $0.46 diluted EPS, for the quarter ended September 30, 2020 and $29.1 million, or $0.56 diluted EPS, for the quarter ended December 31, 2019. Net income of $73.9 million, or $1.48 diluted EPS, for the year ended December 31, 2020 compared to $90.7 million, or $1.68 diluted EPS, for the year ended December 31, 2019;

•Pre-tax, pre-provision operating earnings1 totaled $38.4 million, compared to $39.3 million for the quarter ended September 30, 2020 and $42.1 million for the quarter ended December 31, 2019;

•Total loans held for investment, excluding Paycheck Protection Program ("PPP") loans, grew $91.3 million, from the third quarter of 2020, or 5.8% annualized. Total loans held for investment, excluding PPP loans, grew $504.3 million, or 8.5%, year over year;

•Total deposits grew $290.3 million for the fourth quarter of 2020, or 18.7% annualized, with the average cost of total deposits decreasing to 0.38% for the three months ended December 31, 2020 from 0.46% for the three months ended September 30, 2020. Total deposits grew $618.5 million, or 10.5%, year over year;

•Return on average tangible common equity1 of 12.84% and operating return on average tangible common equity1 of 16.44% for the three months ended December 31, 2020;

•Repurchased 347,428 shares of outstanding common stock under the stock buyback program during the three months ended December 31, 2020 at an average price of $22.90. Since inception, the Company has repurchased 11.1% of issued common stock under the stock buyback program;

•Declared quarterly cash dividend of $0.17 payable on February 18, 2021.


Financial Highlights	QTD						YTD
	Q4 2020			Q3 2020			Q4 2020			Q4 2019
	(Dollars in thousands) (unaudited)
GAAP
Net income	$	22,801		$	22,920		$	73,883		$	90,739
Diluted EPS	0.46			0.46			1.48			1.68
Book value per common share	24.39			23.87			24.39			23.32
Return on average assets2	1.04		%	1.06		%	0.87		%	1.14		%
Efficiency ratio	62.52			48.12			50.90			56.41
Return on average tangible common equity	12.84			13.27			12.84			13.27

Non-GAAP1
Operating earnings	$	29,730		$	22,928		$	77,980		$	123,836
Diluted operating EPS	0.60			0.46			1.56			2.29
Tangible book value per common share	15.70			15.19			15.70			14.73
Pre-tax, pre-provision operating earnings	38,407			39,265			162,447			178,186
Pre-tax, pre-provision operating return on average assets2	1.75		%	1.82		%	1.91		%	2.24		%
Operating return on average assets2	1.35			1.06			0.91			1.56
Operating efficiency ratio	49.49			48.11			47.69			43.80

Operating return on average tangible common equity	16.44			13.27			11.72			17.39

1 Refer to the section titled "Reconciliation of Non-GAAP Financial Measures" for a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures.

2 Annualized ratio.

Result of Operations for the Three Months Ended December 31, 2020

Net Interest Income

For the three months ended December 31, 2020, net interest income before provision for loan losses was $66.8 million and net interest margin was 3.29% compared to $65.9 million and 3.32%, respectively, for the three months ended September 30, 2020. The $896 thousand increase in net interest income was primarily due to a $951 thousand increase in interest income on loans driven by an increase in average balances. Net interest margin decreased 3 basis points from the three months ended September 30, 2020, primarily due to a 1 basis point decrease in yields earned on loan balances. As a result, the average cost of interest-bearing deposits decreased to 0.55% for the three months ended December 31, 2020 from 0.67% for the three months ended September 30, 2020.

Net interest income before provision for loan losses decreased by $3.1 million from $69.9 million to $66.8 million and net interest margin decreased 52 basis points from 3.81% to 3.29% for the three months ended December 31, 2020 as compared to the same period in 2019. The decrease in net interest income before provision for loan losses was primarily due to a $15.5 million decrease in interest income on loans, excluding MW and PPP, partially offset by a $6.1 million and $5.5 million decrease in interest expenses on transaction and savings deposits and certificates and other time deposits, respectively, during the three months ended December 31, 2020 compared to the three months ended December 31, 2019. Net interest margin decreased 52 basis points compared to the three months ended December 31, 2019 primarily due to a decrease in yields earned on loan balances, partially offset by decreases in the average rate paid on interest-bearing demand and savings deposits and certificates and other time deposits for the three months ended December 31, 2020. As a result, the average cost of interest-bearing deposits decreased to 0.55% for the three months ended December 31, 2020 from 1.59% for the three months ended December 31, 2019.

Noninterest Income

Noninterest income for the three months ended December 31, 2020 was $9.0 million, a decrease of $783 thousand, or 8.0% compared to the three months ended September 30, 2020. The decrease in noninterest income is primarily due to a $1.8 million decrease in government guaranteed loan income, net, and a $1.1 million decrease in loan fees. This is partially offset by a $841 thousand increase in service fees and a $830 thousand net increase in derivative income.

Compared to the three months ended December 31, 2019, noninterest income for the three months ended December 31, 2020 grew $1.9 million or 26.4%. The increase was primarily due to a $1.1 million increase in derivative income and a $771 thousand increase in gain on sale of other real estate owned.

Noninterest Expense

Noninterest expense was $47.4 million for the three months ended December 31, 2020, compared to $36.4 million and $36.3 million for the three months ended September 30, 2020 and December 31, 2019, respectively. The increase was primarily driven by a $9.7 million increase in debt extinguishment costs on Federal Home Loan Bank ("FHLB") advances that were pre-paid in the fourth quarter of 2020 with no corresponding FHLB advance prepayments during the three months ended September 30, 2020 or December 31, 2019.

Financial Condition

Total loans were $6.8 billion at December 31, 2020, an increase of $51.4 million, or 3.04% annualized, compared to September 30, 2020 and an increase of $869.6 million, or 14.65%, compared to December 31, 2019. These increases were the result of the continued execution and success of our loan growth strategy.

Total deposits were $6.5 billion at December 31, 2020, an increase of $290.3 million, or 18.7% annualized, compared to September 30, 2020 and an increase of $618.5 million, or 10.49%, compared to December 31, 2019. The increase from September 30, 2020 was primarily the result of an increase of $176.4 million in non-interest bearing demand deposits and an increase of $136.5 million in interest-bearing transaction and savings deposits accounts. The increase from December 31, 2019 was primarily the result of an increase of $540.6 million in non-interest bearing demand deposits and an increase of $303.5 million in interest-bearing transaction and savings deposits accounts, partially offset by a decrease of $225.6 million in certificates and other time deposits.

Asset Quality

Nonperforming assets totaled $87.6 million, or 0.99% of total assets, at December 31, 2020, compared to $96.4 million, or 1.11% of total assets, at September 30, 2020. The Company had net charge-offs of $16.5 million for the quarter, which is primarily the result of one lending relationship.

The Company recorded no provision for credit losses for the three months ended December 31, 2020, compared to $8.7 million and $3.5 million for the three months ended September 30, 2020 and December 31, 2019, respectively. The decrease in the recorded provision for credit losses for the three months ended December 31, 2020, compared to the three months ended September 30, 2020, was primarily attributable to improvement in the Texas economic forecasts used in the Current Expected Credit Losses (“CECL”) model in the fourth quarter of 2020 to reflect the expected impact of the COVID-19 pandemic as of December 31, 2020, as compared to our Texas economic forecasts and expected impact of the COVID-19 pandemic as of September 30, 2020. In the fourth quarter of 2020, we recorded a $902 thousand provision for unfunded commitments which was attributable to higher unfunded balances compared to a $1.4 million provision for unfunded commitments recorded for the three months ended September 30, 2020. Allowance for credit losses ("ACL") as a percentage of loans held for investment ("LHI"), excluding mortgage warehouse and PPP loans, was 1.80%, 2.10% and 0.50% at December 31, 2020, September 30, 2020 and December 31, 2019, respectively.

Income Tax

Income tax expense for the three months ended December 31, 2020 totaled $4.7 million, a decrease of $1.5 million, or 24.1%, compared to the three months ended September 30, 2020. The Company’s effective tax rate was approximately 17.1% and 21.3% for the three months ended December 31, 2020 and the three months ended September 30, 2020, respectively. The change in the effective tax rate from the three months ended September 30, 2020 was primarily due to the reversal of acquired deferred tax liabilities resulting in a tax benefit of $1.2 million offset by tax expense of $550 thousand for setting up an uncertain tax position liability for state nexus tax exposure for the three months ended December 31, 2020.

Dividend Information

On January 26, 2021, Veritex's Board of Directors declared a quarterly cash dividend of $0.17 per share on its outstanding shares of common stock. The dividend will be paid on or after February 18, 2021 to stockholders of record as of the close of business on February 4, 2021.

Non-GAAP Financial Measures

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

Conference Call

The Company will host an investor conference call to review the results on Wednesday, January 27, 2021 at 8:30 a.m. Central Time. Participants may pre-register for the call by visiting https://edge.media-server.com/mmc/p/pkxdjtjuzz and will receive a unique PIN number, which can be used when dialing in for the call. This will allow attendees to enter the call immediately. Alternatively, participants may call toll-free at (877) 703-9880.

The call and corresponding presentation slides will be webcast live on the home page of the Company's website, www.veritexbank.com. An audio replay will be available one hour after the conclusion of the call at (855) 859-2056, Conference #4893521. This replay, as well as the webcast, will be available until February 3, 2021.

About Veritex Holdings, Inc.

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

Media Contact:

LaVonda Renfro

972-349-6200

lrenfro@veritexbank.com

Investor Relations:

Susan Caudle

972-349-6132

scaudle@veritexbank.com

Forward-Looking Statements

This earnings release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on various facts and derived utilizing assumptions, current expectations, estimates and projections and are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements include, without limitation, statements relating to the expected payment date of Veritex’s quarterly cash dividend, the impact of certain changes in Veritex’s accounting policies, standards and interpretations, the effects of the COVID-19 pandemic and actions taken in response thereto, Veritex’s future financial performance, business and growth strategy, projected plans and objectives, as well as other projections based on macroeconomic and industry trends, which are inherently unreliable due to the multiple factors that impact broader economic and industry trends, and any such variations may be material. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing words. We refer you to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of Veritex’s Annual Report on Form 10-K for the year ended December 31, 2019 and any updates to those risk factors set forth in Veritex’s Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings with the Securities and Exchange Commission (“SEC”), which are available on the SEC’s website at www.sec.gov. If one or more events related to these or other risks or uncertainties materialize, or if Veritex’s underlying assumptions prove to be incorrect, actual results may differ materially from what Veritex anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. Veritex does not undertake any obligation, and specifically declines any obligation, to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by law. All forward-looking statements, expressed or implied, included in this earnings release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Veritex or persons acting on Veritex’s behalf may issue.

VERITEX HOLDINGS, INC. AND SUBSIDIARY

Financial Highlights

(Unaudited)


	For the Quarter Ended															For the Year Ended
	Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Dec 31, 2020			Dec 31, 2019
	(Dollars and shares in thousands)
Per Share Data (Common Stock):
Basic EPS	$	0.46		$	0.46		$	0.48		$	0.08		$	0.56		$	1.48		$	1.71
Diluted EPS	0.46			0.46			0.48			0.08			0.56			1.48			1.68
Book value per common share	24.39			23.87			23.45			23.19			23.32			24.39			23.32
Tangible book value per common share1	15.70			15.19			14.71			14.39			14.73			15.70			14.73

Common Stock Data:
Shares outstanding at period end	49,340			49,650			49,633			49,557			51,064			49,340			51,064
Weighted average basic shares outstanding for the period	49,571			49.647			49.597			50.725			51,472			49,884			53,154
Weighted average diluted shares outstanding for the period	49,837			49,775			49,727			51,056			52,263			50,036			53,978

Summary of Credit Ratios:
ACL to total LHI, excluding mortgage warehouse and PPP loans	1.80		%	2.10		%	2.01		%	1.73		%	0.50		%	1.80		%	0.50		%
Nonperforming assets to total assets	0.99			1.11			0.62			0.60			0.50			0.99			0.50
Net charge-offs to average loans outstanding	0.28			0.04			0.03			—			—			0.36			0.19

Summary Performance Ratios:
Return on average assets2	1.04		%	1.06		%	1.11		%	0.20		%	1.43		%	0.87		%	1.14		%
Return on average equity2	7.58			7.74			8.36			1.41			9.63			6.34			7.57
Return on average tangible common equity1, 2	12.84			13.27			14.49			3.27			16.22			11.16			13.02
Efficiency ratio	62.52			48.12			46.02			47.61			47.12			50.90			56.41

Selected Performance Metrics - Operating:
Diluted operating EPS1	$	0.60		$	0.46		$	0.43		$	0.08		$	0.58		$	1.56		$	2.29
Pre-tax, pre-provision operating return on average assets1, 2	1.75		%	1.82		%	2.11		%	1.94		%	2.07		%	1.91		%	2.24		%
Operating return on average assets1, 2	1.35			1.06			0.98			0.20			1.49			0.91			1.56
Operating return on average tangible common equity1, 2	16.44			13.27			12.90			3.27			16.87			11.72			17.39
Operating efficiency ratio1	49.49			48.11			45.74			47.61			45.67			47.69			43.80

Veritex Holdings, Inc. Capital Ratios:

Tier 1 capital to average assets (leverage)	9.43			9.54			9.16			9.49			10.17			9.43			10.17
Common equity tier 1 capital	9.30			9.67			9.66			9.53			10.60			9.30			10.60
Tier 1 capital to risk-weighted assets	9.66			10.05			10.05			9.92			11.02			9.66			11.02
Total capital to risk-weighted assets	13.56			12.70			12.71			12.48			13.10			13.56			13.10
Tangible common equity to tangible assets1	9.23			9.12			8.96			8.81			10.01			9.23			10.01

1Refer to "Reconciliation of Non-GAAP Financial Measures" after the financial highlights for a reconciliation of this non-GAAP financial measure to its most directly comparable GAAP measure.

2Annualized ratio for quarterly metrics.

VERITEX HOLDINGS, INC. AND SUBSIDIARY

Financial Highlights

(in thousands)


	Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020		Dec 31, 2019
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
ASSETS


Cash and cash equivalents	$	230,825	$	128,767	$	160,306	$	430,842	$	251,550
Debt securities	1,055,201		1,091,440		1,112,061		1,117,804		997,330
Other investments	87,192		98,023		104,213		112,775		84,063

Loans held for sale	21,414		13,928		28,041		15,048		14,080
PPP loans, at fair value	358,042		405,465		398,949		—		—
Loans held for investment, mortgage warehouse ("MW")	577,594		544,845		441,992		371,161		183,628
Loans held for investment, excluding MW and PPP	5,847,862		5,789,293		5,726,873		5,853,735		5,737,577
Total loans	6,804,912		6,753,531		6,595,855		6,239,944		5,935,285
Allowance for credit losses	(105,084)		(121,591)		(115,365)		(100,983)		(29,834)
Bank-owned life insurance	82,855		82,366		81,876		81,395		80,915
Bank premises, furniture and equipment, net	115,063		115,794		115,560		116,056		118,536
Other real estate owned	2,337		5,796		7,716		7,720		5,995
Intangible assets, net	61,733		64,716		66,705		69,444		72,263
Goodwill	370,840		370,840		370,840		370,840		370,840
Other assets	114,997		112,693		88,091		85,787		67,994

Total assets	$	8,820,871	$	8,702,375	$	8,587,858	$	8,531,624	$	7,954,937
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Noninterest-bearing deposits	$	2,097,099	$	1,920,715	$	1,907,697	$	1,549,260	$	1,556,500
Interest-bearing transaction and savings deposits	2,958,456		2,821,945		2,714,149		2,536,865		2,654,972
Certificates and other time deposits	1,457,291		1,479,896		1,503,701		1,713,820		1,682,878
Total deposits	6,512,846		6,222,556		6,125,547		5,799,945		5,894,350
Accounts payable and other liabilities	59,263		66,096		64,625		56,339		37,427
Accrued interest payable	2,665		3,444		4,088		5,407		6,569
Advances from Federal Home Loan Bank	777,718		1,082,756		1,087,794		1,377,832		677,870
Subordinated debentures and subordinated notes	262,778		140,158		140,283		140,406		145,571
Securities sold under agreements to repurchase	2,225		2,028		1,772		2,426		2,353

Total liabilities	7,617,495		7,517,038		7,424,109		7,382,355		6,764,140
Commitments and contingencies
Stockholders’ equity:

Common stock	555		555		555		554		549
Additional paid-in capital	1,126,437		1,124,148		1,122,063		1,119,757		1,117,879
Retained earnings	172,232		157,639		143,277		127,812		147,911

Accumulated other comprehensive income	56,225		47,155		42,014		45,306		19,061
Treasury stock	(152,073)		(144,160)		(144,160)		(144,160)		(94,603)
Total stockholders’ equity	1,203,376		1,185,337		1,163,749		1,149,269		1,190,797
Total liabilities and stockholders’ equity	$	8,820,871	$	8,702,375	$	8,587,858	$	8,531,624	$	7,954,937

VERITEX HOLDINGS, INC. AND SUBSIDIARY

Financial Highlights

(in thousands, except per share data)


	For the Quarter Ended										For the Year Ended
	Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020		Dec 31, 2019		Dec 31, 2020		Dec 31, 2019
Interest income:
Loans, including fees	$	69,597	$	68,685	$	70,440	$	77,861	$	82,469	$	286,583	$	340,813
Investment securities	7,652		7,852		7,825		7,397		7,168		30,726		29,484
Deposits in financial institutions and Fed Funds sold	99		65		186		871		1,285		1,221		5,540
Other investments	752		827		891		850		820		3,320		2,949
Total interest income	78,100		77,429		79,342		86,979		91,742		321,850		378,786
Interest expense:
Transaction and savings deposits	2,105		2,105		2,471		6,552		8,203		13,233		40,355
Certificates and other time deposits	3,919		5,004		6,515		8,240		9,455		23,678		38,675
Advances from FHLB	2,222		2,707		2,801		2,879		2,661		10,609		9,984
Subordinated debentures and subordinated notes	3,088		1,743		1,798		1,903		1,559		8,532		4,675
Total interest expense	11,334		11,559		13,585		19,574		21,878		56,052		93,689
Net interest income	66,766		65,870		65,757		67,405		69,864		265,798		285,097
Provision for credit losses	—		8,692		16,172		31,776		3,493		56,640		21,514
Provision for unfunded commitments	902		1,447		2,799		3,881		—		9,029		—
Net interest income after provisions	65,864		55,731		46,786		31,748		66,371		200,129		263,583
Noninterest income:
Service charges and fees on deposit accounts	3,971		3,130		2,960		3,642		3,728		13,703		14,334
Loan fees	684		1,787		1,240		845		1,921		4,556		7,782
(Loss) gain on sales of investment securities	(256)		(8)		2,879		—		(438)		2,615		(1,852)
Gain on sales of mortgage loans held for sale	317		472		308		142		81		1,239		475
Government guaranteed loan income, net	448		2,257		11,006		439		560		14,150		4,709
Rental income	579		502		547		551		371		2,179		2,172
Other	3,269		1,655		2,350		1,628		909		8,902		2,460
Total noninterest income	9,012		9,795		21,290		7,247		7,132		47,344		30,080
Noninterest expense:
Salaries and employee benefits	20,011		20,553		20,019		18,870		18,917		79,453		72,791
Occupancy and equipment	4,116		3,980		3,994		4,273		4,198		16,363		16,385
Professional and regulatory fees	3,578		3,159		2,796		2,196		2,615		11,729		11,597
Data processing and software expense	2,238		2,452		2,434		2,089		1,880		9,213		8,365
Marketing	945		1,062		561		1,083		971		3,651		3,259
Amortization of intangibles	2,558		2,840		2,696		2,696		2,696		10,790		10,887
Telephone and communications	340		345		308		319		466		1,312		1,847
Merger and acquisition expense	—		—		—		—		918		—		38,960
COVID expenses	—		132		1,245		—		—		1,377		—
Debt extinguishment costs	9,746		—		1,561		—		—		11,307		—
Other	3,841		1,885		4,447		4,019		3,623		14,192		13,712
Total noninterest expense	47,373		36,408		40,061		35,545		36,284		159,387		177,803
Income before income tax expense	27,503		29,118		28,015		3,450		37,219		88,086		115,860
Income tax (benefit) expense	4,702		6,198		3,987		(684)		8,168		14,203		25,121
Net income	$	22,801	$	22,920	$	24,028	$	4,134	$	29,051	$	73,883	$	90,739

Basic EPS	$	0.46	$	0.46	$	0.48	$	0.08	$	0.56	$	1.48	$	1.71
Diluted EPS	$	0.46	$	0.46	$	0.48	$	0.08	$	0.56	$	1.48	$	1.68
Weighted average basic shares outstanding	49,571		49,647		49,597		50,725		51,472		49,884		53,154
Weighted average diluted shares outstanding	49,837		49,775		49,727		51,056		52,263		50,036		53,978

VERITEX HOLDINGS, INC. AND SUBSIDIARY

Financial Highlights

(Unaudited)


	For the Quarter Ended
	December 31, 2020						September 30, 2020						December 31, 2019
	Average Outstanding Balance		Interest Earned/ Interest Paid		Average Yield/ Rate		Average Outstanding Balance		Interest Earned/ Interest Paid		Average Yield/ Rate		Average Outstanding Balance		Interest Earned/ Interest Paid		Average Yield/ Rate
	(Dollars in thousands)
Assets
Interest-earning assets:
Loans1	$	5,798,692	$	65,259	4.48	%	$	5,753,859	$	64,958	4.49	%	$	5,692,773	$	80,779	5.63	%
Loans held for investment, mortgage warehouse	446,027		3,355		2.99		358,248		2,705		3.00		191,132		1,690		3.51
PPP loans	390,509		983		1.00		407,112		1,022		1.00		—		—		—
Debt securities	1,076,031		7,652		2.83		1,101,469		7,852		2.84		1,004,342		7,168		2.83
Interest-earning deposits in other banks	258,687		99		0.15		175,201		65		0.15		312,530		1,285		1.63
Equity securities and other investments	95,706		752		3.13		103,948		827		3.17		71,791		820		4.53
Total interest-earning assets	8,065,652		78,100		3.85		7,899,837		77,429		3.90		7,272,568		91,742		5.00
Allowance for loan losses	(121,162)						(116,859)						(27,564)
Noninterest-earning assets	805,651						802,948						798,501
Total assets	$	8,750,141					$	8,585,926					$	8,043,505

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand and savings deposits	$	2,862,084	2,105		0.29	%	$	2,735,170	$	2,105	0.31	%	$	2,621,163	8,203		1.24	%
Certificates and other time deposits	1,467,250		3,919		1.06		1,459,046		5,004		1.36		1,789,544		9,455		2.10
Advances from FHLB	885,014		2,222		1.00		1,067,771		2,707		1.01		726,352		2,661		1.45
Subordinated debentures and subordinated notes	259,581		3,088		4.73		142,432		1,743		4.87		118,193		1,559		5.23
Total interest-bearing liabilities	5,473,929		11,334		0.82		5,404,419		11,559		0.85		5,255,252		21,878		1.65

Noninterest-bearing liabilities:
Noninterest-bearing deposits	2,011,995						1,937,921						1,540,406
Other liabilities	67,943						65,704						50,656
Total liabilities	7,553,867						7,408,044						6,846,314
Stockholders’ equity	1,196,274						1,177,882						1,197,191
Total liabilities and stockholders’ equity	$	8,750,141					$	8,585,926					$	8,043,505

Net interest rate spread2					3.03	%					3.05	%					3.35	%
Net interest income and margin3			$	66,766	3.29	%			$	65,870	3.32	%			$	69,864	3.81	%

1 Includes average outstanding balances of loans held for sale of $11,938, $15,404 and $8,525 for the three months ended December 31, 2020, September 30, 2020 and December 31, 2019, respectively, and average balances of loans held for investment, excluding mortgage warehouse and PPP loans.

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

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

VERITEX HOLDINGS, INC. AND SUBSIDIARY

Financial Highlights

(Unaudited)


	For the Year Ended December 31,
	2020						2019
	Average Outstanding Balance		Interest Earned/ Interest Paid		Average Yield/ Rate		Average Outstanding Balance		Interest Earned/ Interest Paid		Average Yield/ Rate
	(Dollars in thousands)
Assets
Interest-earning assets:
Loans1	$	5,770,228	$	273,999	4.97	%	$	5,722,039	$	334,025	5.93	%
Loans held for investment, mortgage warehouse	318,657		9,672		3.04		162,325		6,788		4.28
PPP loans	290,851		2,912		1.00		—		—		—
Debt securities	1,083,633		30,726		2.84		977,621		29,484		3.02
Interest-earning deposits in other banks	276,970		1,221		0.44		259,866		5,540		2.13
Equity securities and other investments	100,556		3,320		3.30		60,308		2,949		4.89
Total interest-earning assets	7,840,895		321,850		4.10		7,182,159		378,786		5.27
Allowance for loan losses	(98,527)						(23,533)
Noninterest-earning assets	782,907						799,257
Total assets	$	8,525,275					$	7,957,883

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand and savings deposits	$	2,726,462	13,233		0.49		$	2,648,113	40,355		1.52
Certificates and other time deposits	1,550,995		23,678		1.53		1,997,090		38,675		1.94
Advances from FHLB	1,024,142		10,609		1.04		502,681		9,984		1.99
Subordinated debentures and subordinated notes	172,594		8,532		4.94		86,110		4,675		5.43
Total interest-bearing liabilities	5,474,193		56,052		1.02		5,233,994		93,689		1.79

Noninterest-bearing liabilities:
Noninterest-bearing deposits	1,825,806						1,480,207
Other liabilities	60,303						44,809
Total liabilities	7,360,302						6,759,010
Stockholders’ equity	1,164,973						1,198,873
Total liabilities and stockholders’ equity	$	8,525,275					$	7,957,883

Net interest rate spread2					3.08	%					3.48	%
Net interest income and margin3			$	265,798	3.39	%			$	285,097	3.97	%

1Includes average outstanding balances of loans held for sale of $15,315 and $8,762 for the twelve months ended December 31, 2020 and 2019, respectively, and average balances of loans held for investment, excluding mortgage warehouse and PPP loans.

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

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

VERITEX HOLDINGS, INC. AND SUBSIDIARY

Financial Highlights

(Unaudited)

Yield Trend


	For the Quarter Ended
	Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020		Dec 31, 2019
Average yield on interest-earning assets:
Total loans1	4.48	%	4.49	%	4.68	%	5.32	%	5.63	%
Loans held for investment, mortgage warehouse	2.99		3.00		3.01		3.28		3.51
PPP loans	1.00		1.00		1.00		—		—
Debt securities	2.83		2.84		2.82		2.86		2.83
Interest-bearing deposits in other banks	0.15		0.15		0.20		1.14		1.63
Equity securities and other investments	3.13		3.17		3.24		3.72		4.53
Total interest-earning assets	3.85	%	3.90	%	3.99	%	4.74	%	5.00	%

Average rate on interest-bearing liabilities:
Interest-bearing demand and savings deposits	0.29	%	0.31	%	0.37	%	1.00	%	1.24	%
Certificates and other time deposits	1.06		1.36		1.61		2.01		2.10
Advances from FHLB	1.00		1.01		0.93		1.23		1.45
Subordinated debentures and subordinated notes	4.73		4.87		5.07		5.27		5.23
Total interest-bearing liabilities	0.82	%	0.85	%	0.97	%	1.47	%	1.65	%

Net interest rate spread2	3.03	%	3.05	%	3.02	%	3.27	%	3.35	%
Net interest margin3	3.29	%	3.32	%	3.31	%	3.67	%	3.81	%

1 Includes average outstanding balances of loans held for sale of $11,938, $15,404, $22,958, $10,995 and $8,525 for the three months ended December 31, 2020, September 30, 2020, June 30, 2020, March 31, 2020 and December 31, 2019, respectively, and average balances of loans held for investment, excluding mortgage warehouse and PPP loans.

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

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

Supplemental Yield Trend


	For the Quarter Ended
	Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020		Dec 31, 2019
Average cost of interest-bearing deposits	0.55	%	0.67	%	0.84	%	1.39	%	1.59	%
Average costs of total deposits, including noninterest-bearing	0.38		0.46		0.59		1.02		1.18

VERITEX HOLDINGS, INC. AND SUBSIDIARY

Financial Highlights

(Unaudited)

LHI and Deposit Portfolio Composition


	Dec 31, 2020					Sep 30, 2020					Jun 30, 2020					Mar 31, 2020					Dec 31, 2019
	(Dollars in thousands)
LHI1
Commercial	$	1,559,546		26.7	%	$	1,623,249		28.0	%	$	1,555,300		27.2	%	$	1,777,603		30.4	%	$	1,712,838		29.9	%
Real Estate:
Owner occupied commercial	717,472			12.3		734,939			12.7		769,952			13.4		723,839			12.4		706,782			12.3
Non-owner occupied commercial	1,904,132			32.5		1,817,013			31.4		1,847,480			32.3		1,828,386			31.2		1,784,201			31.1
Construction and land	693,030			11.8		623,496			10.8		599,510			10.5		566,470			9.7		629,374			11.0
Farmland	13,844			0.2		14,413			0.2		14,723			0.3		14,930			0.3		16,939			0.3
1-4 family residential	524,344			9.0		548,953			9.5		528,688			9.2		536,892			9.2		549,811			9.6
Multi-family residential	424,962			7.3		412,412			7.1		394,829			6.8		388,374			6.7		320,041			5.6
Consumer	13,000			0.2		14,127			0.2		14,932			0.3		15,771			0.3		17,457			0.3
Total LHI	$	5,850,330		100	%	$	5,788,602		100	%	$	5,725,414		100	%	$	5,852,265		100	%	$	5,737,443		100	%

Mortgage warehouse	577,594					544,845					441,992					371,161					183,628
PPP loans	358,042					405,465					398,949					—					—

Total LHI1	$	6,785,966				$	6,738,912				$	6,566,355				$	6,223,426				$	5,921,071

Deposits
Noninterest-bearing	$	2,097,099		32.2	%	$	1,920,715		30.9	%	$	1,907,697		31.1	%	$	1,549,260		26.7	%	$	1,556,500		26.4	%
Interest-bearing transaction	453,110			7.0		450,739			7.2		343,640			5.6		306,641			5.3		388,877			6.6
Money market	2,398,526			36.8		2,267,191			36.4		2,272,520			37.1		2,143,874			37.0		2,180,017			37.0
Savings	106,820			1.6		104,015			1.7		97,989			1.6		86,350			1.5		86,078			1.5
Certificates and other time deposits	1,457,291			22.4		1,479,896			23.7		1,503,701			24.5		1,713,820			29.6		1,682,878			28.6
Total deposits	$	6,512,846		100	%	$	6,222,556		100	%	$	6,125,547		100	%	$	5,799,945		100	%	$	5,894,350		100	%

Loan to Deposit Ratio	104.2		%			108.3		%			107.2		%			107.3		%			100.5		%
Loan to Deposit Ratio, excluding mortgage warehouse and PPP loans	89.8		%			93.0		%			93.5		%			100.9		%			97.3		%

1 Total LHI does not include deferred fees of $2.5 million and $691 thousand at December 31, 2020 and September 30, 2020, respectively, deferred costs of $1.5 million, $1.5 million and $134 thousand at June 30, 2020, March 31, 2020 and December 31, 2019, respectively.

VERITEX HOLDINGS, INC. AND SUBSIDIARY

Financial Highlights

(Unaudited)

Asset Quality


	For the Quarter Ended															For the Year Ended
	Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Dec 31, 2020			Dec 31, 2019
	(Dollars in thousands)
Nonperforming Assets ("NPAs"):
Nonaccrual loans	$	81,096		$	88,877		$	43,594		$	38,836		$	29,799		$	81,096		$	29,799

Accruing loans 90 or more days past due1	4,204			1,689			2,021			4,764			3,660			4,204			3,660

Total nonperforming loans held for investment ("NPLs")	85,300			90,566			45,615			43,600			33,459			85,300			33,459
Other real estate owned	2,337			5,796			7,716			7,720			5,995			2,337			5,995
Total NPAs	$	87,637		$	96,362		$	53,331		$	51,320		$	39,454		$	87,637		$	39,454

Charge-offs:
Residential	$	(18)		$	—		$	—		$	—		$	—		$	(18)		$	(157)
Owner occupied commercial real estate	—			(2,421)			—			—			—			(2,421)			—
Nonowner occupied commercial real estate	(2,865)			—			—			—			—			(2,865)			—
Commercial	(13,699)			(68)			(1,740)			—			—			(15,507)			(10,898)
Consumer	(26)			(11)			(57)			(68)			(48)			(162)			(265)
Total charge-offs	(16,608)			(2,500)			(1,797)			(68)			(48)			(20,973)			(11,320)

Recoveries:
Residential	49			7			—			1			5			57			67
Commercial	52			14			7			29			135			102			226
Consumer	—			13			—			274			6			287			92
Total recoveries	101			34			7			304			146			446			385

Net charge-offs	$	(16,507)		$	(2,466)		$	(1,790)		$	236		$	98		$	(20,527)		$	(10,935)

CECL transition adjustment	$	—		$	—		$	—		$	39,137		$	—		$	39,137		$	—

Allowance for credit losses ("ACL") at end of period	$	105,084		$	121,591		$	115,365		$	100,983		$	29,834		$	105,084		$	29,834



Asset Quality Ratios:
NPAs to total assets	0.99		%	1.11		%	0.62		%	0.60		%	0.50		%	0.99		%	0.50		%
NPLs to total LHI, excluding mortgage warehouse and PPP loans	1.46			1.56			0.80			0.75			0.57			1.46			0.57
ACL to total LHI, excluding mortgage warehouse and PPP loans	1.80			2.10			2.01			1.73			0.50			1.80			0.50

Net charge-offs to average loans outstanding	0.28			0.04			0.03			—			—			0.36			0.19

1 Accruing loans greater than 90 days past due exclude purchase credit deteriorated loans greater than 90 days past due that are accounted for on a pooled basis.

VERITEX HOLDINGS, INC. AND SUBSIDIARY

Reconciliation of Non-GAAP Financial Measures

(Unaudited)

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

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

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

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

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


	As of
	Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020		Dec 31, 2019
	(Dollars in thousands, except per share data)
Tangible Common Equity
Total stockholders' equity	$	1,203,376	$	1,185,337	$	1,163,749	$	1,149,269	$	1,190,797
Adjustments:
Goodwill	(370,840)		(370,840)		(370,840)		(370,840)		(370,840)
Core deposit intangibles	(57,758)		(60,209)		(62,661)		(65,112)		(67,563)
Tangible common equity	$	774,778	$	754,288	$	730,248	$	713,317	$	752,394
Common shares outstanding	49,340		49,650		49,633		49,557		51,064

Book value per common share	$	24.39	$	23.87	$	23.45	$	23.19	$	23.32
Tangible book value per common share	$	15.70	$	15.19	$	14.71	$	14.39	$	14.73

VERITEX HOLDINGS, INC. AND SUBSIDIARY

Reconciliation of Non-GAAP Financial Measures

(Unaudited)

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

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

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


	As of
	Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			Mar 31, 2020			Dec 31, 2019
	(Dollars in thousands)
Tangible Common Equity
Total stockholders' equity	$	1,203,376		$	1,185,337		$	1,163,749		$	1,149,269		$	1,190,797
Adjustments:
Goodwill	(370,840)			(370,840)			(370,840)			(370,840)			(370,840)
Core deposit intangibles	(57,758)			(60,209)			(62,661)			(65,112)			(67,563)
Tangible common equity	$	774,778		$	754,288		$	730,248		$	713,317		$	752,394
Tangible Assets
Total assets	$	8,820,871		$	8,702,375		$	8,587,858		$	8,531,624		$	7,954,937
Adjustments:
Goodwill	(370,840)			(370,840)			(370,840)			(370,840)			(370,840)
Core deposit intangibles	(57,758)			(60,209)			(62,661)			(65,112)			(67,563)
Tangible Assets	$	8,392,273		$	8,271,326		$	8,154,357		$	8,095,672		$	7,516,534
Tangible Common Equity to Tangible Assets	9.23		%	9.12		%	8.96		%	8.81		%	10.01		%

VERITEX HOLDINGS, INC. AND SUBSIDIARY

Reconciliation of Non-GAAP Financial Measures

(Unaudited)

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

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

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


	For the Quarter Ended															For the Year Ended
	Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Dec 31, 2020			Dec 31, 2019
	(Dollars in thousands)
Net income available for common stockholders adjusted for amortization of core deposit intangibles
Net income	$	22,801		$	22,920		$	24,028		$	4,134		$	29,051		$	73,883		$	90,739
Adjustments:
Plus: Amortization of core deposit intangibles	2,451			2,451			2,451			2,451			2,451			9,804			9,830
Less: Tax benefit at the statutory rate	515			515			515			515			515			2,060			2,065
Net income available for common stockholders adjusted for amortization of core deposit intangibles	$	24,737		$	24,856		$	25,964		$	6,070		$	30,987		$	81,627		$	98,504

Average Tangible Common Equity
Total average stockholders' equity	$	1,196,274		$	1,177,882		$	1,155,798		$	1,183,116		$	1,197,191		$	1,164,973		$	1,198,873
Adjustments:
Average goodwill	(370,840)			(370,840)			(370,840)			(370,840)			(370,463)			(370,840)			(369,441)
Average core deposit intangibles	(59,010)			(61,666)			(64,151)			(66,439)			(68,913)			(62,803)			(72,692)
Average tangible common equity	$	766,424		$	745,376		$	720,807		$	745,837		$	757,815		$	731,330		$	756,740
Return on Average Tangible Common Equity (Annualized)	12.84		%	13.27		%	14.49		%	3.27		%	16.22		%	11.16		%	13.02		%

VERITEX HOLDINGS, INC. AND SUBSIDIARY

Reconciliation of Non-GAAP Financial Measures

(Unaudited)

Operating Earnings, Pre-tax, Pre-provision Operating Earnings and performance metrics calculated using Operating Earnings and Pre-tax, Pre-provision Operating Earnings, including Diluted Operating Earnings per Share, Operating Return on Average Assets, Pre-tax, Pre-Provision Operating Return on Average Assets, Operating Return on Average Tangible Common Equity and Operating Efficiency Ratio. Operating earnings, pre-tax, pre-provision operating earnings and the performance metrics calculated using these metrics, listed below, are non-GAAP measures used by management to evaluate the Company’s financial performance. We calculate (a) operating earnings as net income plus loss (gain) on sale of securities, net, plus loss on sale of disposed branch assets, plus debt extinguishment costs, plus merger and acquisition expenses, less tax impact of adjustments, plus other merger and acquisition tax items, plus re-measurement of deferred tax assets as a result of the reduction in the corporate income tax rate under the Tax Cuts and Jobs Act. We calculate (b) diluted operating earnings per share as operating earnings as described in clause (a) divided by weighted average diluted shares outstanding. We calculate (c) pre-tax, pre-provision operating earnings as operating earnings as described in clause (a) plus provision for income taxes, plus provision for credit losses and unfunded commitments. We calculate (d) pre-tax, pre-provision operating return on average assets as pre-tax, pre-provision operating earnings as described in clause (a) divided by total average assets. We calculate (e) operating return on average assets as operating earnings as described in clause (a) divided by total average assets. We calculate (f) operating return on average tangible common equity as operating earnings as described in clause (a), adjusted for the amortization of intangibles and tax benefit at the statutory rate, divided by total average tangible common equity (average stockholders’ equity less average goodwill and average core deposit intangibles, net of accumulated amortization). We calculate (g) operating efficiency ratio as non interest expense plus adjustments to operating non interest expense divided by non interest income plus adjustments to operating non interest income, plus net interest income.

We believe that these measures and the operating metrics calculated utilizing these measures are important to management and many investors in the marketplace who are interested in understanding the ongoing operating performance of the Company and provide meaningful comparisons to its peers.

The following tables reconcile, as of the dates set forth below, operating net income and pre-tax, pre-provision operating earnings and related metrics:


	For the Quarter Ended										For the Year Ended
	Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020		Dec 31, 2019		Dec 31, 2020		Dec 31, 2019
	(Dollars in thousands)
Operating Earnings
Net income	$	22,801	$	22,920	$	24,028	$	4,134	$	29,051	$	73,883	$	90,739
Plus: Loss (gain) on sale of securities available for sale, net	256		8		(2,879)		—		438		(2,615)		1,852
Plus: Loss on sale of disposed branch assets1	—		—		—		—		—		—		359

Plus: Debt extinguishment costs2	9,746		—		1,561		—		—		11,307		—

Plus: Merger and acquisition expenses	—		—		—		—		918		—		38,601
Operating pre-tax income	32,803		22,928		22,710		4,134		30,407		82,575		131,551
Less: Tax impact of adjustments	2,100		—		(277)		—		(23)		1,823		8,262

Plus: Other M&A tax items3	—		—		—		—		829		—		1,512
Plus: Nonrecurring tax adjustments4	(973)		—		(1,799)		—		(965)		(2,772)		(965)
Operating earnings	$	29,730	$	22,928	$	21,188	$	4,134	$	30,294	$	77,980	$	123,836

Weighted average diluted shares outstanding	49,837		49,775		49,727		51,056		52,263		50,036		53,978
Diluted EPS	$	0.46	$	0.46	$	0.48	$	0.08	$	0.56	$	1.49	$	1.68
Diluted operating EPS	$	0.60	$	0.46	$	0.43	$	0.08	$	0.58	$	1.56	$	2.29

1 Loss on sale of disposed branch assets for the year ended December 31, 2019 is included in merger and acquisition expense in the condensed consolidated statements of income.

2 Debt extinguishment costs relate to prepayment penalties paid in connection with the early payoff of FHLB structured advances.

3 Other M&A tax items of $829 thousand recorded during the three months ended December 31, 2019 relate to permanent tax expense recognized by the Company as a result of deduction limitations on compensation paid to covered employees in excess of the 162(m) limitation directly due to change-in-control payments made to covered employees in connection with the Green acquisition.

4 A nonrecurring tax adjustment of $973 thousand recorded in the fourth quarter of 2020 was primarily due the reversal of acquired deferred tax liabilities resulting in a tax benefit of $1.2 million offset by tax expense of $281 thousand for the setup of an uncertain tax position liability relating to state tax exposure for tax years prior to the year ending December 31, 2020. A nonrecurring tax adjustment of $1,799 was recorded in the second quarter of 2020 as a result of the Company amending a prior year Green tax return to carry back a net

operating loss ("NOL") incurred by Green on January 1, 2019. The Company was allowed to carry back this NOL as result of a provision in the CARES Act which permits NOLs generated in tax years 2018, 2019 or 2020 to be carried back five years. A nonrecurring tax adjustment of $965 thousand was recorded during the fourth quarter of 2019 primarily due to the Company recording a net tax benefit of $1.6 million as a result of the Company settling an audit with the IRS. The Company released an uncertain tax position reserve that was assumed in the Green acquisition resulting in a $2.2 million tax benefit, offset by tax expense totaling $598 thousand that were recorded due to the Tax Cuts and Jobs Act rate change on deferred tax assets resulting from the IRS audit settlement. The net IRS settlement was offset by various non-recurring tax expenses totaling $0.6 million.


	For the Quarter Ended															For the Year Ended
	Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Dec 31, 2020			Dec 31, 2019
	(Dollars in thousands)
Pre-Tax, Pre-Provision Operating Earnings
Net Income	$	22,801		$	22,920		$	24,028		$	4,134		$	29,051		$	73,883		$	90,739
Plus: Provision for income taxes	4,702			6,198			3,987			(684)			8,168			14,203			25,121
Pus: Provision for credit losses and unfunded commitments	902			10,139			18,971			35,657			3,493			65,669			21,514
Plus: Loss (gain) on sale of securities, net	256			8			(2,879)			—			438			(2,615)			1,852
Plus: Loss on sale of disposed branch assets1	—			—			—			—			—			—			359

Plus: Debt extinguishment costs	9,746			—			1,561			—			—			11,307			—

Plus: Merger and acquisition expenses	—			—			—			—			918			—			38,601
Net pre-tax, pre-provision operating earnings	$	38,407		$	39,265		$	45,668		$	39,107		$	42,068		$	162,447		$	178,186

Total average assets	$	8,750,141		$	8,585,926		$	8,689,774		$	8,125,782		$	8,043,505		$	8,525,275		$	7,957,883
Pre-tax, pre-provision operating return on average assets2	1.75		%	1.82		%	2.11		%	1.94		%	2.07		%	1.91		%	2.24		%

Average Total Assets	$	8,750,141		$	8,585,926		$	8,689,744		$	8,125,782		$	8,043,505		$	8,525,275		$	7,957,883
Return on average assets2	1.04		%	1.06		%	1.11		%	0.20		%	1.43		%	0.87		%	1.14		%
Operating return on average assets2	1.35			1.06			0.98			0.20			1.49			0.91			1.56

Operating earnings adjusted for amortization of core deposit intangibles
Operating earnings	$	29,730		$	22,928		$	21,188		$	4,134		$	30,294		$	77,980		$	123,836
Adjustments:
Plus: Amortization of core deposit intangibles	2,451			2,451			2,451			2,451			2,451			9,804			9,830
Less: Tax benefit at the statutory rate	515			515			515			515			515			2,060			2,065
Operating earnings adjusted for amortization of core deposit intangibles	$	31,666		$	24,864		$	23,124		$	6,070		$	32,230		$	85,724		$	131,601

Average Tangible Common Equity
Total average stockholders' equity	$	1,196,274		$	1,177,882		$	1,155,798		$	1,183,116		$	1,197,191		$	1,164,973		$	1,198,873
Adjustments:
Average goodwill	(370,840)			(370,840)			(370,840)			(370,840)			(370,463)			(370,840)			(369,441)
Average core deposit intangibles	(59,010)			(61,666)			(64,151)			(66,439)			(68,913)			(62,803)			(72,692)
Average tangible common equity	$	766,424		$	745,376		$	720,807		$	745,837		$	757,815		$	731,330		$	756,740
Operating return on average tangible common equity2	16.44		%	13.27		%	12.90		%	3.27		%	16.87		%	11.72		%	17.39		%

Efficiency ratio	62.52		%	48.12		%	46.02		%	47.61		%	47.12		%	50.90		%	56.41		%
Operating efficiency ratio	49.49		%	48.11		%	45.74		%	47.61		%	45.67		%	47.69		%	43.80		%

1 Loss on sale of disposed branch assets for the year ended December 31, 2019 is included in merger and acquisition expense in the condensed consolidated statements of income.

2 Annualized ratio for quarterly metrics.

a4q20investordeckexhibit

4th Quarter Earnings Conference Call January 27, 2020 Veritex Holdings, Inc. Exhibit 99.2

2 Safe Harbor Statement Forward-looking statements This presentation contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on various facts and derived utilizing assumptions, current expectations, estimates and projections and are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward- looking statements include, without limitation, statements relating to the expected payment date of Veritex Holdings, Inc.’s (“Veritex”) quarterly cash dividend, impact of certain changes in Veritex’s accounting policies, standards and interpretations, the effects of the COVID-19 pandemic and actions taken in response thereto, Veritex’s future financial performance, business and growth strategy, projected plans and objectives, as well as other projections based on macroeconomic and industry trends, which are inherently unreliable due to the multiple factors that impact broader economic and industry trends, and any such variations may be material. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing words. We refer you to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of Veritex’s Annual Report on Form 10-K for the year ended December 31, 2019 and any updates to those risk factors set forth in Veritex’s Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings with the Securities and Exchange Commission (“SEC”), which are available on the SEC’s website at www.sec.gov. If one or more events related to these or other risks or uncertainties materialize, or if Veritex’s underlying assumptions prove to be incorrect, actual results may differ materially from what Veritex anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. Veritex does not undertake any obligation, and specifically declines any obligation, to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by law. All forward-looking statements, expressed or implied, included in this presentation are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Veritex or persons acting on Veritex’s behalf may issue. This presentation also includes industry and trade association data, forecasts and information that Veritex has prepared based, in part, upon data, forecasts and information obtained from independent trade associations, industry publications and surveys, government agencies and other information publicly available to Veritex, which information may be specific to particular markets or geographic locations. Some data is also based on Veritex's good faith estimates, which are derived from management's knowledge of the industry and independent sources. Industry publications, surveys and forecasts generally state that the information contained therein has been obtained from sources believed to be reliable. Although Veritex believes these sources are reliable, Veritex has not independently verified the information contained therein. While Veritex is not aware of any misstatements regarding the industry data presented in this presentation, Veritex's estimates involve risks and uncertainties and are subject to change based on various factors. Similarly, Veritex believes that its internal research is reliable, even though such research has not been verified by independent sources.

3 Non-GAAP Financial Measures Veritex reports its results in accordance with United States generally accepted accounting principles (“GAAP”). However, management believes that certain supplemental non-GAAP financial measures used in managing its business provide meaningful information to investors about underlying trends in its business. Management uses these non-GAAP measures to assess the Company’s operating performance and believes that these non-GAAP measures provide information that is important to investors and that is useful in understanding Veritex’s results of operations. However, non-GAAP financial measures are supplemental and should be viewed in addition to, and not as an alternative for, Veritex’s reported results prepared in accordance with GAAP. The following are the non-GAAP measures used in this presentation: • Tangible book value per common share; • Tangible common equity to tangible assets; • Return on average tangible common equity; • Operating earnings; • Pre-tax, pre-provision (“PTPP”) operating earnings; • Diluted operating earnings per share (“EPS”); • Operating return on average assets; • PTPP operating return on average assets; • Operating return on average tangible common equity; • Operating efficiency ratio; • Operating noninterest income; • Operating noninterest expense; • Adjusted net interest margin (“NIM”). Please see “Reconciliation of Non-GAAP Financial Measures” at the end of this presentation for reconciliations of non-GAAP measures to the most directly comparable financial measures calculated in accordance with GAAP.

Strong Earnings Loan and Deposit Growth Capital • Net income of $22.8 million, or $0.46 diluted earnings per share (“EPS”) for 4Q20. Net income of $73.9 million, or $1.48 diluted EPS for YTD 2020 • Operating net income1 of $29.7 million, or $0.60 diluted operating EPS1 for 4Q20. Operating net income1 of $77.9 million, or $1.56 diluted operating EPS1 for YTD 2020 • Operating ROATCE1, 2 increased to 16.44% in 4Q20 compared to 13.27% in 3Q20 • Total loans, excluding Paycheck Protection Program (“PPP”) loans, increased $91.3 million, or 5.8% linked quarter annualized (“LQA”) • Total deposits grew $290.3 million, or 18.7% LQA • Total demand deposits grew $176.4 million, or 36.7% LQA • Average cost of total deposits decreased to 0.38% for 4Q20 from 0.46% for 3Q20 • Tangible book value per common share increased to $15.70 from $15.19 at September 30, 2020 • Declared quarterly dividend of $0.17 in 1Q21, consistent with each quarter in 2020 • Repurchased 347,428 shares during 4Q20 at an average price of $22.90. Since inception in 1Q19, the Company has repurchased 11.1% of outstanding common stock through its stock buyback program 1 Please refer to the “Reconciliation of Non-GAAP Financial Measures” at the end of this presentation for a description and reconciliation of these non-GAAP financial measures. 2 Return on average tangible common equity (“ROATCE”) 4 Fourth Quarter/Full Year Overview

Key Financial Metrics 47.12% 47.61% 46.02% 48.12% 45.67% 47.61% 45.74% 48.11% 49.49% 4Q19 1Q20 2Q20 3Q20 4Q20 Reported Operating Efficiency Ratio 1.43% 0.20% 1.11% 1.06% 1.04% 1.49% 0.98% 1.06% 1.35% 2.07% 1.94% 2.11% 1.82% 1.75% 4Q19 1Q20 2Q20 3Q20 4Q20 Reported Operating ROAA PTPP Operating $14.73 $14.39 $14.71 $15.19 $15.70 4Q19 1Q20 2Q20 3Q20 4Q20 NPAs / Total Assets 62.52% Return on Average Tangible Common Equity $0.56 $0.48 $0.58 $0.08 $0.46 $0.60 4Q19 1Q20 2Q20 3Q20 4Q20 Diluted EPS Diluted Operating EPS $0.43 $0.46 16.22% 3.27% 14.49% 13.27% 12.84% 16.87% 12.90% 4Q19 1Q20 2Q20 3Q20 4Q20 ROATCE Operating ROATCE ROAADiluted EPS Tangible Book Value per Common Share1 5 16.44% ($ in millions) $39.5 $51.3 $53.3 $96.4 $87.6 0.50% 0.60% 0.62% 1.11% 0.99% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 4Q19 1Q20 2Q20 3Q20 4Q20 NPAs NPAs/Total Assets 1 Please refer to the “Reconciliation of Non-GAAP Financial Measures” at the end of this presentation for a description and reconciliation of these non-GAAP financial measures. 1 11 11 1

• Net interest income of $66.8 million, up $0.9 million from 3Q20 despite $1.4 million lower purchase accounting accretion and $1.3 million interest cost of new sub debt raise • Average earning assets grew $165.8 million, or 8.4% LQA, during 4Q20 • 4Q20 weighted average loan production rate of 3.84%, excluding mortgage warehouse • 4Q20 weighted average interest-bearing deposit rate of 26 bps on production Net Interest Income 6 $67.4 $65.8 $65.9 $66.8 3.81% 3.67% 3.31% 3.32% 3.29% 3.47% 3.39% 3.13% 3.10% 3.15% 4Q19 1Q20 2Q20 3Q20 4Q20 Net Interest Income NIM Adjusted NIM (Excludes All Purchase Accounting) 1 $69.9 $7,388 $8,002 $7,900 $8,066 4Q19 1Q20 2Q20 3Q20 4Q20 Average Earning Assets $7,273 Average Earning Assets NIM Rollforward ($ in millions) 3.32% 3.29% 0.06% 0.03% 0.03% (0.07%) (0.06%) (0.02%) ($ in millions) 1 1 Please refer to the “Reconciliation of Non-GAAP Financial Measures” at the end of this presentation for a description and reconciliation of these non-GAAP financial measures.

Operating Noninterest Inc./Exp. 7 Operating Noninterest Income1 Composition $3,728 $3,642 $2,960 $3,130 $3,971 $1,921 $845 $1,240 $1,787 $684 $842 $2,179 $2,897 $2,141 $3,336 4Q19 1Q20 2Q20 3Q20 4Q20 Other Government guaranteed loan income, net Gain on sale of mortgage loans Loan fees Service charges and fees on deposit accounts 1 Please refer to the “Reconciliation of Non-GAAP Financial Measures” at the end of this presentation for a description and reconciliation of these non-GAAP financial measures. $7,570 Operating Noninterest Expense1 Composition $18,917 $18,870 $20,019 $20,553 $20,011 $4,198 $4,273 $3,994 $3,980 $4,116 $2,615 $2,196 $2,796 $3,159 $3,578 $2,696 $2,696 $2,696 $2,840 $2,558 $6,940 $7,510 $7,750 $5,744 $7,364 4Q19 1Q20 2Q20 3Q20 4Q20 Salaries and employee benefits Occupany and equipment Professional and regulatory fees Amortization of intangibles COVID related expenses Other ($ in thousands) $35,366 $7,247 $35,545$18,411 $11,006 $38,500 $9,803 $36,408 $1,245 $132 $2,257 $9,268 $448 $37,627

1.59% 1.39% 0.84% 0.67% 0.55% 1.18% 1.02% 0.59% 0.46% 0.38% 4Q19 1Q20 2Q20 3Q20 4Q20 Average cost of interest-bearing deposits Average cost of total deposits Cost of Interest-bearing Deposits and Total Deposits  Total deposit balances increased $289 million, or 19% LQA1, and increased $618 million, or 10.5% YOY1  Total deposit cost down 8 bps compared to 3Q20 due to pricing diligence and product mix  Excluding MW and PPP loans, the loan to deposit ratio was 89.8% at December 31, 2020 compared to 93.0% at September 30, 2020 CD Maturity Table $2,655 $2,822 $2,958 $1,557 $1,921 $2,097 $1,683 $1,480 $1,457 4 Q 1 9 3 Q 2 0 4 Q 2 0 Int. Bearing & Savings Non-Int Bearing Time Deposits Deposits Composition 45.4% 32.2% 22.4% $5,895 $6,223 $6,512 Deposit Growth LQA YOY Int. Bearing & Savings +19.3% +11.4% Non-Int Bearing +36.7% +34.7% Certificates and Time Deposits -6.2% -13.4% 1 Linked quarter annualized (“LQA”), Year-over-year (“YOY”) 8 Balance ($000) WA Rate Q1 2021 320,959 1.18% Q2 2021 265,102 1.01% Q3 2021 160,079 1.01% Q4 2021 163,960 0.89% Q1 2022 58,111 1.45% Q2 2022 36,992 0.86% Q3 2022 56,385 0.49% Q4 2022 42,549 0.59% Q1 2023 + 44,578 1.91% Total 1,148,715 1.05% ($ in millions)

• Total loans, excluding PPP and MW, increased $61.7 million, or 4.3% LQA , and increased $112.9 million, or 2.0% YOY • Mortgage warehouse increased $32.8 million, or 24.0% LQA , and increased $394.0 million, or 214.5% YOY • In addition to internal pandemic loan reviews in 2020 which covered 71.1% of total commitments, an external loan review was completed during 4Q20 with no significant grade changes • 51.2% of # of PPP loans outstanding as of December 31, 2020 are under $50,000 $183.6 $544.8 $577.6 4 Q 1 9 3 Q 2 0 4 Q 2 0 Mortgage Warehouse Loan Growth $405.5 $358.0 4 Q 1 9 3 Q 2 0 4 Q 2 0 PPP Loans at Fair Value 9 $1.2 Billion ($ in millions) ($ in millions) ($ in millions) $3,457 $3,603 $3,753 $1,713 $1,623 $1,560 $567 $563 $537 4Q19 3Q20 4Q20 Secured by RE Commercial Mortgage/Consumer Loans, excluding PPP and Mortgage Warehouse (“MW”) $5,737 $5,789 $5,850 9.1% 26.7% 64.2% $0 40% 45% 50% 55% 1 1 2 3 4 5 6 7 8 9 1 1 1 Revolving C&I Utilization Down 600 bps YOY and 1100 bps from peak

1 Total loans excludes Loans Held for Sale, MW and PPP loans. Allowance for Credit Losses 10 $29.8 $101.0 $115.4 $121.6 $105.1 0.50% 1.73% 2.01% 2.10% 1.80% -0.2% 0.3% 0.8% 1.3% 1.8% 2.3% 2.8% 4Q19 1Q20 2Q20 3Q20 4Q20 ACL ACL/Total Loans ACL / Total Loans1 CECL Modeling Assumptions › Weighted Moody’s Texas unemployment and year-over-year % change in Texas GDP scenarios utilized in CECL model › Weighted forecasts feature significant improvement in forecasted periods compared to forecasts utilized in 3Q20 and 2Q20 › During 4Q20, no additional qualitative factors were utilized outside of the qualitative factors utilized in comparative periods ($ in millions) ($ in thousands) September 30, 2020 December 31, 2020 (Decrease) / Increase in ACL December 31, 2020 Reserve % per Portfolio Pooled Loans, excluding MW and PPP Commercial 21,059$ 14,401$ (6,658)$ 0.95% CRE 37,915 30,333 (7,582) 1.20% Multifamily 6,542 6,225 (317) 1.46% Construction and Land 9,468 7,715 (1,753) 1.10% 1-4 Family Residential 9,860 7,599 (2,261) 1.46% Consumer 290 224 (66) 1.96% Total 85,134$ 66,497$ (18,637)$ 1.17% Specific Reserves - Nonaccruals 18,892$ 16,899$ (1,993)$ 20.79% PCD Reserves 17,565$ 21,688$ 4,123$ 17.29% Allowance for Credit Loss ("ACL"), ex. MW and PPP 121,591$ 105,084$ (16,507)$ ACL / Total Loans Held for Investment, ex. MW and PPP 2.10% 1.80% ACL / Total Loans Held for Investment 1.80% 1.55% Reserve for Unfunded Expected to Fund 9,845$ 10,747$ Net Charge-offs (2,466)$ (16,507)$

Continued Capital Build 11 10.66% 10.92% 11.96% 10.92% 9.43% 9.66% 13.56% 9.30% Leverage Ratio Tier 1 Ratio Total Capital Ratio CET1 Bank VHI 1 Estimated capital measures inclusive of CECL capital transition provisions as of December 31, 2020. 2 Total assets includes PPP loans that we did not utilize the Paycheck Protection Program Liquidity Facility to fund. 3 Please refer to the “Reconciliation of Non-GAAP Financial Measures” at the end of this presentation for a description and reconciliation of these non-GAAP financial measures. Ratios as of December 31, 2020 $0.46 $0.18 $0.05 $0.04 $15.19 $15.70 $(0.17) $(0.05) $(0.01) TBV Rollforward ($ in thousands) December 31, 2020 December 31, 2019 $ Change Basel III Standarized1 CET1 capital 753,261$ 742,675$ 10,586$ CET1 capital ratio 9.3% 10.6% Leverage capital 782,487$ 771,679$ 10,808$ Leverage capital ratio 9.4% 10.2% Tier 1 capital 782,487$ 771,679$ 10,808$ Tier 1 capital ratio 9.7% 11.0% Total capital 1,099,031$ 917,939$ 181,092$ Total capital ratio 13.6% 13.1% Risk weighted assets 8,105,484$ 7,005,619$ 1,099,865$ Total assets2 8,820,871$ 7,954,937$ 865,934$ Tangible common equity / Tangible Assets3 9.23% 10.01%

1 Past due loans exclude purchased credit deteriorated loans that are accounted for on a pooled basis and non-accrual loans. 2 Total loans excludes Loans Held for Sale, MW and PPP loans. 4Q19 1Q20 2Q20 3Q20 4Q20 0.00% 0.10% 0.20% 0.30% 0.40% 30-59 Past Due 60-89 Past Due 90+ Past Due Past Due1 Trends % of Total Loans2 Asset Quality 12 $131.9 7/24/20 10/22/20 1/21/21 COVID Loan Deferrals $1,200.0 $35.9 0.6% of Total Loans2 as of 1/21/21 $18,620 ($ in millions) ($ in millions) 4Q19 1Q20 2Q20 3Q20 4Q20 Acquired $- $- $1,740 $2,421 $16,462 Originated $(98) $(236) $50 $45 $45 Net Charge-offs ($ in thousands) Totals $34,501 $24,120 $11,738 $18,691 $291.9 $157.4 $117.0 1/1/19 12/31/19 12/31/20 PCD Loan Gross Loan Balances 2.0% of Total Loans2 ($ in millions)

Hospitality Portfolio Drill Down 13 Total Remaining Deferrals Past Due/Non-Accrual Total Criticized Total Hospitality Portolfio $3,396 $10,711 $150,128 $369,560 40.6% As of December 31, 2020 2 ($ in millions) # $ Commitment $ Outstanding Avg. Loan Amount Term 79 $ 315.8 $ 311.1 $ 3.9 In-Process Construction 4 $ 65.4 $ 34.2 $ 6.8 SBA / USDA 25 $ 24.3 $ 24.3 $ 0.5 Total 108 $ 405.5 $ 369.6 $ 2.8 % of Total Loans1 6.3% 1 Total loans excludes loans held for sale, MW and PPP loans. 2 Deferrals based on loan balances as of January 21, 2021. • 0.5% of hotel loans were non-performing as of December 31, 2020 • Weighted average LTV of 60% on total outstanding • October 2020 was the best month for property revenue since the pandemic began • Deferrals have dropped from a peak of $215.6 million to the current level of $3.4 million, or 0.9% of the portfolio • Past dues are confined to a SBA 504 loan and SBA 7a loan

Hospitality Portfolio Drill Down 14 Remaining relationships in the Hospitality portfolio have an average loan balance of $2.2 million Loan Relationship Loan Balance (in thousands) Risk Rating Hotel Type Avg. Q4 Occupancy Rates Rev. Inc. June to Oct. LTV Non-Accrual? Currently on Deferral? 1 37,430 Pass Watch Luxury 31% 28% 55% No No 2 31,894 Special Mention Economy 82% 36% 64% No No 3 25,413 Pass Watch Luxury 40% 121% 59% No No 4 20,884 Pass Watch Top Tier 41% 22% 62% No No 5 16,270 Special Mention Top Tier 35% -15% 66% No No 6 12,417 Special Mention Economy 36% 17% 57% No No 7 10,623 Pass Watch Top Tier 90% 39% 67% No No 8 9,935 Special Mention Top Tier 50% 31% 69% No No 9 9,400 Pass Watch Top Tier 75% No No 10 9,056 Special Mention Top Tier 62% No No Total 183,322 % of Portfolio 50% TOP 10 HOSPITALITY RELATIONSHIPS Opening 1Q21 Opening 1Q21

Retail CRE Portfolio Drill Down Total Remaining Deferrals Past Due/Non-Accrual Total Criticized Total Retail CRE Portolfio $0 $7,810 $30,690 $533,846 ($ in millions) # $ Commitment $ Outstanding Avg. Loan Amount NOOCRE Retail 196 $ 480.0 $ 453.9 $ 2.0 Construction Retail 26 $ 144.3 $ 80.0 $ 2.8 Total 222 $ 624.3 $ 533.9 $ 2.3 % of Total Loans1 9.1% • Weighted average LTV of 57.5% on total outstanding • Approximately 5.7% of outstanding exposure are Criticized assets • 9 borrowers with loans in excess of $10 million with an average LTV of 58% • Approximately 88% of outstanding exposure is located in the Bank’s primary market of Texas • 0.6% of retail loans were non-performing as of December 31, 2020 15 As of December 31, 2020 2 1 Total loans excludes loans held for sale, MW and PPP loans. 2 Deferrals based on loan balances as of January 21, 2021.

Restaurant Portfolio Drill Down 16 Total Remaining Deferments Past Due/Non-Accrual Total Criticized Total Restaurant Portolfio $1,401 $11,244 $38,297 $122,752 As of December 31, 2020 ($ in millions) # $ Commitment $ Outstanding Avg. Loan Amount Term 86 $ 120.4 $ 103.8 $ 1.0 In-Process Construction 5 $ 7.0 $ 5.4 $ 1.1 SBA / USDA 30 $ 13.6 $ 13.6 $ 0.3 Total 121 $ 141.0 $ 122.8 $ 0.9 % of Total Loans1 2.1% • 61% Quick Service / 39% Full Service • A total of 80% of the portfolio is secured by real estate assets with an average LTV of 60% • Approximately 92% of exposure is located within the State of Texas • 4.0% of restaurant loans were non-performing with $1.6 million in specific reserves • 6 borrowers (11 loans) account for approximately $43.3 million, or 35%, of the outstanding balance. All but one of these loans are secured by CRE. The one not secured by CRE is one of the most prominent chains in DFW • Past due / Non-accrual loans are primarily in government guaranteed loans that were problem assets prior to the COVID-19 pandemic 1 Total loans excludes loans held for sale, MW and PPP loans. 2 Deferrals based on loan balances as of January 21, 2021. 2

Government Guaranteed Drill Down 17 Total Remaining Deferments Past Due/Non-Accrual Total Criticized Total SBA Portolfio $23,769 $27,515 $75,126 $193,834 As of December 31, 2020 238.8% ($ in millions) Net Outstanding Guaranteed Unguaranteed SBA 504 $ 31.1 $ - $ 31.1 SBA 7a RE Secured $ 65.8 $ 15.2 $ 50.6 SBA 7a Non RE Secured $ 42.5 $ 17.2 $ 25.3 SBA Other $ 21.2 $ 15.4 $ 5.8 USDA $ 33.2 $ 0.9 $ 32.3 Total $ 193.8 $ 48.7 $ 145.1 % of Total Loans1 3.3% 1 Total loans excludes loans held for sale, MW and PPP loans. 2 Total SBA portfolio excludes PPP loans 3 Deferrals based on loan balances as of January 21, 2021. 27.6% 25.2%8.6% 8.6% 7.7% 9.6% 7.6% 5.0% Industry Breakdown C&I CRE Hospitality Warehouse Office Retail Restaurant Other • 67% secured by real estate • $27.5 million past due/nonaccrual, or 0.5% of Total Loans1 • 53% of outstanding are acquired SBA loans • SBA portfolio has an average unguaranteed balance of $156 thousand 3

Builder Finance Group Private Banking 18 Talent Investments in Last 6 Months Syndication Group Senior Credit Officers Data Analytics Chief Technology Officer Director of Loan Operations 3 25+ 3 20+ 1 10+ 4 3 1 15 1 Talent Hired Years of Banking Experience (Average) 3 25+ 2 20+ 1 1 20+ 75% have experience at $10b-$50b banks 65% have experience at $50b+ banks

19 Company Overview • Experienced management team – 35 years average banking experience • Strong presence in Dallas and Houston – Texas is experiencing continued strong population inflow – population growth is nearly double the U.S. average – Significant growth opportunities within our footprint • Scarcity value – 3rd largest bank solely focused on major Texas MSAs • Excellent core earnings profile has supported reserves – 1.91% PTPP ROAA1 for 2020 and 1.80% ACL / Total Loans HFI • Strong capital levels2 – 9.30% common equity tier 1 ratio – 13.56% total risk-based capital ratio • Steady balance sheet growth2 – Total loans, excluding PPP, increased $91.3 million, or 5.8% linked quarter annualized – Total deposits grew $290.3 million, or 18.7% linked quarter annualized – Total demand deposits grew $176.4 million, or 36.7% linked quarter annualized • Track record of successfully integrating acquisitions 1 Please refer to “Reconciliation of Non-GAAP Financial Measures” at the end of this presentation for a description and reconciliation of these non-GAAP financial measures. 2 Financial data as of December 31, 2020.

Supplemental Information Veritex Holdings, Inc.

21 Reconciliation of Non-GAAP Financial Measures 12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2019 Tangible Common Equity Total stockholders' equity $ 1,203,376 $ 1,185,337 $ 1,163,749 $ 1,149,269 $ 1,190,797 Adjustments: Goodwill (370,840) (370,840) (370,840) (370,840) (370,840) Core deposit intangibles (57,758) (60,209) (62,661) (65,112) (67,563) Tangible common equity $ 774,778 $ 754,288 $ 730,248 $ 713,317 $ 752,394 Tangible Assets Total assets $ 8,820,871 $ 8,702,375 $ 8,587,858 $ 8,531,624 $ 7,954,937 Adjustments: Goodwill (370,840) (370,840) (370,840) (370,840) (370,840) Core deposit intangibles (57,758) (60,209) (62,661) (65,112) (67,563) Tangible Assets $ 8,392,273 $ 8,271,326 $ 8,154,357 $ 8,095,672 $ 7,516,534 Tangible Common Equity to Tangible Assets 9.23% 9.12% 8.96% 8.81% 10.01% (Dollars in thousands) As of

22 Reconciliation of Non-GAAP Financial Measures 12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2019 12/31/2020 12/31/2019 Net income available for common stockholders adjusted for amortization of core deposit intangibles Net income $ 22,801 $ 22,920 $ 24,028 $ 4,134 $ 29,051 $ 73,883 $ 90,739 Adjustments: Plus: Amortization of core deposit intangibles 2,451 2,451 2,451 2,451 2,451 9,804 9,830 Less: Tax benefit at the statutory rate 515 515 515 515 515 2,060 2,065 Net income available for common stockholders adjusted for amortization of core deposit intangibles $ 24,737 $ 24,856 $ 25,964 $ 6,070 $ 30,987 $ 81,627 $ 98,504 Average Tangible Common Equity Total average stockholders' equity $ 1,196,274 $ 1,177,882 $ 1,155,798 $ 1,183,116 $ 1,197,191 $ 1,164,973 $ 1,198,873 Adjustments: Average goodwill (370,840) (370,840) (370,840) (370,840) (370,463) (370,840) (369,441) Average core deposit intangibles (59,010) (61,666) (64,151) (66,439) (68,913) (62,803) (72,692) Average tangible common equity 766,424 745,376 720,807 745,837 757,815 731,330 756,740 Return on Average Tangible Common Equity (Annualized) 12.84% 13.27% 14.49% 3.27% 16.22% 11.16% 13.02% For the Quarter Ended For the Year Ended (Dollars in thousands)

23 Reconciliation of Non-GAAP Financial Measures 1 Loss on sale of disposed branch assets for the year ended December 31, 2019 is included in merger and acquisition expense in the condensed consolidated statements of income. 2 Debt extinguishment costs relate to prepayment penalties paid in connection with the early payoff of FHLB structured advances. 3 Other M&A tax items of $829 thousand recorded during the three months ended December 31, 2019 relate to permanent tax expense recognized by the Company as a result of deduction limitations on compensation paid to covered employees in excess of the 162(m) limitation directly due to change-in-control payments made to covered employees in connection with the Green acquisition. 4 A nonrecurring tax adjustment of $973 thousand recorded in the fourth quarter of 2020 was primarily due the reversal of acquired deferred tax liabilities resulting in a tax benefit of $1.2 million offset by tax expense of $281 thousand for the setup of an uncertain tax position liability relating to state tax exposure for tax years prior to the year ending December 31, 2020. A nonrecurring tax adjustment of $1,799 was recorded in the second quarter of 2020 as a result of the Company amending a prior year Green tax return to carry back a net operating loss ("NOL") incurred by Green on January 1, 2019. The Company was allowed to carry back this NOL as result of a provision in the CARES Act which permits NOLs generated in tax years 2018, 2019 or 2020 to be carried back five years. A nonrecurring tax adjustment of $965 thousand was recorded during the fourth quarter of 2019 primarily due to the Company recording a net tax benefit of $1.6 million as a result of the Company settling an audit with the IRS. The Company released an uncertain tax position reserve that was assumed in the Green acquisition resulting in a $2.2 million tax benefit, offset by tax expense totaling $598 thousand that were recorded due to the Tax Cuts and Jobs Act rate change on deferred tax assets resulting from the IRS audit settlement. The net IRS settlement was offset by various non-recurring tax expenses totaling $0.6 million. 12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2019 12/31/2020 12/31/2019 Operating Earnings Net income $ 22,801 $ 22,920 $ 24,028 $ 4,134 $ 29,051 $ 73,883 $ 90,739 Plus: Loss (gain) on sale of securities available for sale, net 256 8 (2,879) - 438 (2,615) 1,852 Plus: Loss on sale of disposed branch assets1 - - - - - - 359 Plus: Debt extinguishment costs2 9,746 - 1,561 - - 11,307 - Plus: Merger and acquisition expenses - - - - 918 - 38,601 Operating pre-tax income 32,803 22,928 22,710 4,134 30,407 82,575 131,551 Less: Tax impact of adjustments 2,100 - (277) - (23) 1,823 8,262 Plus: Other M&A tax items3 - - - - 829 - 1,512 Plus: Nonrecurring tax adjustments4 (973) - (1,799) - (965) (2,772) (965) Operating earnings $ 29,730 $ 22,928 $ 21,188 $ 4,134 $ 30,294 $ 77,980 $ 123,836 Weighted average diluted shares outstanding 49,837 49,775 49,727 51,056 52,263 50,036 53,978 Diluted EPS $ 0.46 $ 0.46 $ 0.48 $ 0.08 $ 0.56 $ 1.49 $ 1.68 Diluted operating EPS $ 0.60 $ 0.46 $ 0.43 $ 0.08 $ 0.58 $ 1.56 $ 2.29 (Dollars in thousands) For the Quarter Ended For the Year Ended

24 Reconciliation of Non-GAAP Financial Measures 12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2019 12/31/2020 12/31/2019 Pre-Tax, Pre-Provision Operating Earnings Net Income $ 22,801 $ 22,920 $ 24,028 $ 4,134 $ 29,051 $ 73,883 $ 90,739 Plus: Provision for income taxes 4,702 6,198 3,987 (684) 8,168 14,203 25,121 Pus: Provision for credit losses and unfunded commitments 902 10,139 18,971 35,657 3,493 65,669 21,514 Plus: Loss (gain) on sale of securities, net 256 8 (2,879) - 438 (2,615) 1,852 Plus: Loss on sale of disposed branch assets1 - - - - - - 359 Plus: Debt extinguishment costs 9,746 - 1,561 - - 11,307 - Plus: Merger and acquisition expenses - - - - 918 - 38,601 Net pre-tax, pre-provision operating earnings $ 38,407 $ 39,265 $ 45,668 $ 39,107 $ 42,068 $ 162,447 $ 178,186 Total average assets $ 8,750,141 $ 8,585,926 $ 8,689,774 $ 8,125,782 $ 8,043,505 $ 8,525,275 $ 7,957,883 Pre-tax, pre-provision operating return on average assets2 1.75% 1.82% 2.11% 1.94% 2.07% 1.91% 2.24% Average Total Assets $ 8,750,141 $ 8,585,926 $ 8,689,744 $ 8,125,782 $ 8,043,505 $ 8,525,275 $ 7,957,883 Return on average assets2 1.04% 1.06% 1.11% 0.20% 1.43% 0.87% 1.14% Operating return on average assets2 1.35% 1.06% 0.98% 0.20% 1.49% 0.91% 1.56% Operating earnings adjusted for amortization of core deposit intangibles Operating earnings $ 29,730 $ 22,928 $ 21,188 $ 4,134 $ 30,294 $ 77,980 $ 123,836 Adjustments: Plus: Amortization of core deposit intangibles 2,451 2,451 2,451 2,451 2,451 9,804 9,830 Less: Tax benefit at the statutory rate 515 515 515 515 515 2,060 2,065 Operating earnings adjusted for amortization of core deposit intangibles 31,666 24,864 23,124 6,070 32,230 85,724 131,601 Average Tangible Common Equity Total average stockholders' equity $ 1,196,274 $ 1,177,882 $ 1,155,798 $ 1,183,116 $ 1,197,191 $ 1,164,973 $ 1,198,873 Adjustments: Average goodwill (370,840) (370,840) (370,840) (370,840) (370,463) (370,840) (369,441) Average core deposit intangibles (59,010) (61,666) (64,151) (66,439) (68,913) (62,803) (72,692) Average tangible common equity $ 766,424 $ 745,376 $ 720,807 $ 745,837 $ 757,815 $ 731,330 $ 756,740 Operating return on average tangible common equity2 16.44% 13.27% 12.90% 3.27% 16.87% 11.72% 17.39% Efficiency ratio 62.52% 48.12% 46.02% 47.61% 47.12% 50.90% 56.41% Operating efficiency ratio 49.49% 48.11% 45.74% 47.61% 45.67% 47.69% 43.86% 1 Loss on sale of disposed branch assets for the year ended December 31, 2019 is included in merger and acquisition expense in the condensed consolidated statements of income. 2 Annualized ratio for quarterly metrics. For the Quarter Ended For the Year Ended (Dollars in thousands)

25 Reconciliation of Non-GAAP Financial Measures 12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2019 Operating noninterest income Noninterest income $ 9,012 $ 9,795 $ 21,290 $ 7,247 $ 7,132 Plus: Loss (gain) on sale of securities available for sale, net $ 256 8 (2,879) - 438 Operating noninterest income $ 9,268 $ 9,803 $ 18,411 $ 7,247 $ 7,570 Operating noninterest expense Noninterest expense $ 47,373 $ 36,408 $ 40,061 $ 35,545 $ 36,284 Less: FHLB prepayment fees $ 9,746 - 1,561 - - Less: Merger and acquisition expenses $ - - - - 918 Operating noninterest expense $ 37,627 $ 36,408 $ 38,500 $ 35,545 $ 35,366 12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2019 Adjusted net interest margin Net interest income 66,766$ $ 65,870 $ 65,757 $ 67,405 $ 69,864 Less: Loan accretion 2,652$ 3,953 3,134 4,455 5,582 Less: Deposit premium amortization 89$ 110 263 423 740 Adjusted net interest margin $ 64,025 $ 61,807 $ 62,360 $ 62,527 $ 63,542 Total interest-earning assets 8,068,652$ $7,899,837 $8,001,485 $7,388,028 $7,272,568 Adjusted net interest margin 3.15% 3.10% 3.13% 3.39% 3.47% As of (Dollars in thousands, except per share data) For the Quarter Ended (Dollars in thousands, except per share data)

4th Quarter Earnings Conference Call January 27, 2020 Veritex Holdings, Inc.

Document

Exhibit 99.3

https://cdn.kscope.io/aab1e86561e2939d065943f3536ace1e-veritexseclogo1.jpg

PRESS RELEASE

FOR IMMEDIATE RELEASE

Veritex Holdings, Inc. Declares Cash Dividend on Common Stock

Dallas, TX – January 26, 2021 – Veritex Holdings, Inc. (Nasdaq: VBTX) (“Veritex” or the “Company”), the parent holding company for Veritex Community Bank, today announced the declaration of a quarterly cash dividend of $0.170 per share on its outstanding common stock. The dividend will be paid on or after February 18, 2021 to shareholders of record as of February 4, 2021.

About Veritex Holdings, Inc.

Forward Looking Statement

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements include statements regarding Veritex's projected plans and objectives, including the expected payment date of its common stock dividend. Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “target,” “estimate,” “continue,” “positions,” “prospects” or “potential,” by future conditional verbs such as “will,” “would,” “should,” “could” or “may”, or by variations of such words or by similar expressions. These forward-looking statements are subject to numerous assumptions, risks and uncertainties which change over time. Forward-looking statements speak only as of the date they are made and Veritex assumes no duty to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.

Source: Veritex Holdings, Inc.

Media Contact:

LaVonda Renfro

972-349-6200

lrenfro@veritexbank.com

Investor Relations:

Susan Caudle

972-349-6132

scaudle@veritexbank.com