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vbtx-20211026

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): October 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

On October 26, 2021, Veritex Holdings, Inc. (the “Company”), the holding company for Veritex Community Bank (the “Bank”), a Texas state chartered bank, issued a press release describing its results of operations for the third quarter ended September 30, 2021. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

As provided in General Instruction B.2 to Form 8-K, the information furnished in this Item 2.02 (including Exhibit 99.1) 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 (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 7.01 Regulation FD Disclosure

On Wednesday, October 27, 2021 at 8:30 a.m., Central Time, the Company will host an investor conference call and webcast to review its third quarter 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 October 26, 2021. The presentation materials are attached hereto as Exhibit 99.2 and are incorporated herein by reference.

As provided in General Instruction B.2 to Form 8-K, the information furnished in this Item 7.01 (including Exhibit 99.2) of this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of 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 or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 8.01 Other Events

On October 26, 2021, the Company issued a press release announcing the declaration of a quarterly cash dividend of $0.20 per share on its outstanding common stock. The dividend will be paid on or after November 23, 2021 to shareholders of record as of the close of business on November 10, 2021. The press release is attached hereto as Exhibit 99.3 and is incorporated herein by reference.

Forward Looking Statement

This Current Report 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 the Company’s quarterly cash dividend, the expected timing of completion of the Company’s acquisition of North Avenue Capital, LLC (“NAC”), the impact of certain changes in the Company’s accounting policies, standards and interpretations, the effects of the COVID-19 pandemic and actions taken in response thereto, the Company’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. Further, certain important factors could affect future results and cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, the possibility that the Company’s acquisition of NAC does not close when expected or at all because required regulatory, shareholder or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all, the failure to close for any other reason, that the businesses of the Company and NAC will not be integrated successfully, that the cost savings and any synergies from the proposed acquisition may not be fully realized or may take longer to realize than expected, disruption from the proposed acquisition making it more difficult to maintain relationships with employees, customers or other parties with whom the Company or NAC have business relationships, diversion of management time on acquisition-related issues, the reaction to the transaction of the companies’ customers, employees and counterparties and other factors, many of which are beyond the control of the Company and NAC. We refer you to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 and any updates to

those risk factors set forth in the Company’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 the Company’s underlying assumptions prove to be incorrect, actual results may differ materially from what the Company 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. The Company 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 Current Report 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 the Company or persons acting on the Company’s behalf may issue.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.


Exhibit Number						Description
99.1						Press release, dated October 2 6 , 2021
99.2						Presentation materials
99.3						Press release, dated October 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:						October 26, 2021

Document

Exhibit 99.1

VERITEX HOLDINGS, INC. REPORTS THIRD QUARTER OPERATING RESULTS

Dallas, TX — October 26, 2021 —Veritex Holdings, Inc. (“Veritex,” the “Company,” “we” or “our”) (Nasdaq: VBTX), the holding company for Veritex Community Bank, today announced the results for the quarter ended September 30, 2021.

“The third quarter was transformational for the growing Veritex family,” said President and CEO, Malcolm C. Holland, III. “We closed our 49% investment in Thrive and announced the acquisition of North Avenue Capital, the nation’s largest producer of USDA loans, which will close on November 1, 2021. We continue to see benefits from our targeted talent hires with record annualized loan growth of 22.1% for Q3-21 and remain focused on revenue diversification, sound underwriting, reducing NPAs, maintaining our strong culture and pursuing opportunities to further scale our Company.”

Third Quarter Highlights

•Net income of $36.8 million, or $0.73 diluted earnings per share (“EPS”), compared to $29.5 million, or $0.59 diluted EPS, for the quarter ended June 30, 2021 and $22.9 million, or $0.46 diluted EPS, for the quarter ended September 30, 2020;

•Operating earnings1 of $35.1 million, or $0.70 diluted operating EPS1, compared to $30.0 million, or $0.60 diluted operating EPS1, for the quarter ended June 30, 2021 and $22.9 million, or $0.46 diluted operating EPS1, for the quarter ended September 30, 2020;

•Total loans held for investment (“LHI”), excluding mortgage warehouse (“MW”) and Paycheck Protection Program (“PPP”) loans, grew $344.5 million from the second quarter of 2021, or 21.9% annualized;

•Total LHI, excluding MW and PPP, grew $768.0 million from December 31, 2020, or 17.5% annualized, and $826.2 million, or 14.3%, year over year.

•Total deposits grew $199.9 million from the second quarter of 2021, or 11.4% annualized, with the average cost of total deposits decreasing to 0.20% for the three months ended September 30, 2021 from 0.23% for the three months ended June 30, 2021;

•Nonperforming assets (“NPAs”) to total assets decreased to 0.77%, or 8 basis points from the second quarter of 2021;

•Book value per common share increased to $26.09 from $25.72 as of June 30, 2021 and tangible book value per common share1 increased to $17.53 from $17.16 as of June 30, 2021;

•Repurchased 328,122 shares at an average price of $34.85 during the third quarter of 2021 and extended the Stock Buyback Program to December 31, 2022;

•Announced the completion of the Company’s 49% investment in Thrive Mortgage, LLC (“Thrive”) during the third quarter and recognized $4.5 million of equity method investment income which includes $1.9 million of PPP loan forgiveness income;

•Announced the acquisition of North Avenue Capital, LLC on September 21, 2021. Transaction will close November 1, 2021; and

•Declared quarterly cash dividend of $0.20 per share of outstanding common stock payable on November 23, 2021.


	QTD						YTD
Financial Highlights	Q3 2021			Q2 2021			Q3 2021			Q3 2020
	(Dollars in thousands) (unaudited)
GAAP
Net income	$	36,835		$	29,456		$	98,078		$	51,082
Diluted EPS	0.73			0.59			1.95			1.02
Book value per common share	26.09			25.72			26.09			23.87
Return on average assets2	1.56		%	1.27		%	1.42		%	0.81		%

Efficiency ratio	47.55			52.42			49.79			47.19

Non-GAAP1
Operating earnings	$	35,072		$	29,952		$	97,237		$	48,250
Diluted operating EPS	0.70			0.60			1.94			0.96
Tangible book value per common share	17.53			17.16			17.53			15.19
Pre-tax, pre-provision operating earnings	43,858			38,497			122,565			124,040
Pre-tax, pre-provision operating return on average assets2	1.85		%	1.66		%	1.78		%	1.96		%
Operating return on average assets2	1.48			1.29			1.41			0.76
Operating efficiency ratio	48.51			51.63			49.89			47.10
Return on average tangible common equity2	17.72			15.18			16.70			10.56
Operating return on average tangible common equity2	16.92			15.42			16.57			10.04

1 Refer to the section titled “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of these non-generally accepted accounting principles (“GAAP”) financial measures to their most directly comparable GAAP measures.

2 Annualized ratio.

Results of Operations for the Three Months Ended September 30, 2021

Net Interest Income

For the three months ended September 30, 2021, net interest income before provision for credit losses was $71.3 million and net interest margin was 3.26% compared to $67.1 million and 3.11%, respectively, for the three months ended June 30, 2021. Net interest margin increased 15 basis points from the three months ended June 30, 2021 primarily due to a change in the mix of interest-earning assets resulting from increases in loans, which tend to yield greater interest rates and decreases in PPP loans, which earned a 1.00% yield and excess liquidity which yields 15 basis points. The average cost of interest-bearing deposits decreased 5 basis points to 0.30% for the three months ended September 30, 2021 from 0.35% for the three months ended June 30, 2021.

Net interest income before provision for credit losses increased by $5.4 million from $65.9 million to $71.3 million and net interest margin decreased by 6 basis points from 3.32% to 3.26% for the three months ended September 30, 2021 as compared to the same period in 2020. The increase in net interest income before provision for credit losses was primarily due to a $3.1 million decrease in interest expense on certificate and other time deposits and a $2.5 million increase in interest income on loans during the three months ended September 30, 2021 compared to the three months ended September 30, 2020. Net interest margin decreased 6 basis points from the three months ended September 30, 2020 primarily due to a decrease in the average yields earned on loans, 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 September 30, 2021. As a result, the average cost of interest-bearing deposits decreased 37 basis points to 0.30% for the three months ended September 30, 2021 from 0.67% for the three months ended September 30, 2020.

Noninterest Income

Noninterest income for the three months ended September 30, 2021 was $15.6 million, an increase of $3.2 million, or 25.5%, compared to the three months ended June 30, 2021. The increase was primarily due to a $4.5 million increase in equity method investment income related to our 49% investment in Thrive which closed during the third quarter. This increase was partially offset by a $774 thousand decrease in PPP income and a $333 thousand decrease in gain on sale of Small Business Administration (“SBA”) loans during the three months ended September 30, 2021 compared to the three months ended June 30, 2021.

Compared to the three months ended September 30, 2020, noninterest income for the three months ended September 30, 2021 increased by $5.8 million, or 59.5%. The increase was primarily due to the $4.5 million increase in equity method investment income related to the Company’s investment in Thrive discussed above and a $1.4 million increase in service charges and fees on deposit accounts as a result of increased deposits during the three months ended September 30, 2021 , compared to the same period in 2020.

Noninterest Expense

Noninterest expense was $41.3 million for the three months ended September 30, 2021, compared to $41.7 million for the three months ended June 30, 2021, a decrease of $396 thousand, or 0.9%. The decrease was primarily driven by a $690 thousand decrease in marketing expenses as a result of decreased advertising during the three months ended September 30, 2021 compared to the three months ended June 30, 2021.

Compared to the three months ended September 30, 2020, noninterest expense for the three months ended September 30, 2021 increased by $4.9 million, or 13.5%. The increase was primarily driven by a $2.4 million increase in salaries and employee benefits as a result of a $1.8 million increase in accrued employee bonus, a $1.7 million increase in lender incentive, a $1.6 million increase in salaries and a $565 thousand increase in employee stock based compensation which was slightly offset by a $2.8 million increase in direct loan origination costs which are required to be deferred in accordance with ASC 310-20 during the three months ended September 30, 2021 compared to the same period in 2020. The increase in noninterest expense was also a result of a $556 thousand increase in occupancy and equipment, a $461 thousand increase in problem loan fees, a $242 thousand increase in professional and regulatory fees and a $128 thousand increase in legal settlements during the three months ended September 30, 2021 compared to the same period in 2020

Financial Condition

Total LHI, excluding MW and PPP, were $6.6 billion, an increase of $343.8 million, or 21.9%, annualized, compared to June 30, 2021. Total loans were $7.4 billion at September 30, 2021, an increase of $250.2 million, or 14.0% annualized, compared to June 30, 2021. The increases were the result of the continued execution and success of our loan growth strategy.

Total deposits were $7.2 billion at September 30, 2021, an increase of $199.9 million, or 11.4% annualized, compared to June 30, 2021. The increase was primarily the result of an increase of $169.7 million in certificates and other time deposits and an increase of $115.3 million in interest-bearing transaction and savings deposits. This increase was partially offset by a decrease of $85.1 million in noninterest-bearing demand deposits.

Asset Quality

NPAs totaled $74.0 million, or 0.77% of total assets at September 30, 2021, compared to $79.9 million, or 0.85% of total assets, at June 30, 2021. Included in NPAs as of September 30, 2021 are $1.7 million of accruing loans 90 or more days past due that are considered well-secured and in the process of collection. The Company’s net charge-offs for the three months ended September 30, 2021 were $5.8 million, which were fully reserved against in prior periods.

The Company recorded no provision for credit losses for the three months ended September 30, 2021 and June 30, 2021, compared to $8.7 million for the three months ended September 30, 2020. The decrease in the recorded provision for credit losses for the three months ended September 30, 2021, 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 third quarter of 2021 to reflect the expected impact of the COVID-19 pandemic as of September 30, 2021, as compared to our Texas economic forecasts and expected impact of the COVID-19 pandemic as of September 30, 2020. In the third quarter of 2021, we also recorded a $448 thousand benefit for unfunded commitments, which was also attributable to improvement in the Texas economic forecasts..

Allowance for credit losses (“ACL”) as a percentage of LHI, excluding MW and PPP loans, was 1.42%, 1.59% and 2.10% at September 30, 2021, June 30, 2021 and September 30, 2020, respectively.

Dividend Information

On October 26, 2021, Veritex’s Board of Directors declared a quarterly cash dividend of $0.20 per share on its outstanding shares of common stock. The dividend will be paid on or after November 23, 2021 to stockholders of record as of the close of business on November 10, 2021.

Non-GAAP Financial Measures

Veritex’s management uses certain financial measures that are not calculated and presented in accordance with generally accepted accounting principles as in effect from time to time in the United States (“GAAP”) 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 EPS, 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, October 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/ttpjfm6e and will receive a unique PIN, which can be used when dialing in for the call. This will allow attendees to access 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, https://ir.veritexbank.com/. An audio replay will be available one hour after the conclusion of the call at (855) 859-2056, Conference

#5908627. This replay, as well as the webcast, will be available until November 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 and Investor Relations:

investorrelations@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 the Company’s quarterly cash dividend, the expected timing of completion of the Company’s acquisition of North Avenue Capital, LLC (“NAC”), the impact of certain changes in the Company’s accounting policies, standards and interpretations, the effects of the COVID-19 pandemic and actions taken in response thereto, the Company’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. Further, certain important factors could affect future results and cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, the possibility that the Company’s acquisition of NAC does not close when expected or at all because required regulatory, shareholder or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all, the failure to close for any other reason, that the businesses of the Company and NAC will not be integrated successfully, that the cost savings and any synergies from the proposed acquisition may not be fully realized or may take longer to realize than expected, disruption from the proposed acquisition making it more difficult to maintain relationships with employees, customers or other parties with whom the Company or NAC have business relationships, diversion of management time on acquisition-related issues, the reaction to the transaction of the companies’ customers, employees and counterparties and other factors, many of which are beyond the control of the Company and NAC. We refer you to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 and any updates to those risk factors set forth in the Company’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 the Company’s underlying assumptions prove to be incorrect, actual results may differ materially from what the Company 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. The Company 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 the Company or persons acting on the Company’s behalf may issue.

VERITEX HOLDINGS, INC. AND SUBSIDIARIES

Financial Highlights

(Unaudited)


	For the Three Months Ended															For the Nine Months Ended
	Sep 30, 2021			Jun 30, 2021			Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Sep 30, 2021			Sep 30, 2020
	(Dollars and shares in thousands, except per-share data)
Per Share Data (Common Stock):
Basic EPS	$	0.75		$	0.60		$	0.64		$	0.46		$	0.46		$	1.98		$	1.02
Diluted EPS	0.73			0.59			0.64			0.46			0.46			1.95			1.02
Book value per common share	26.09			25.72			24.96			24.39			23.87			26.09			23.87
Tangible book value per common share1	17.53			17.16			16.34			15.70			15.19			17.53			15.19
Dividends paid per common share outstanding2	0.20			0.20			0.17			0.17			0.17			0.57			0.51

Common Stock Data:
Shares outstanding at period end	49,229			49,498			49,433			49,340			49,650			49,229			49,650
Weighted average basic shares outstanding for the period	49,423			49,476			49,394			49,571			49,647			49,431			49,989
Weighted average diluted shares outstanding for the period	50,306			50,331			49,998			49,837			49,775			50,230			50,176

Summary of Credit Ratios:
ACL to total LHI, excluding MW and PPP loans	1.42		%	1.59		%	1.76		%	1.80		%	2.10		%	1.42		%	2.10		%
NPAs to total assets	0.77			0.85			0.92			0.99			1.11			0.77			1.11
Net charge-offs to average loans outstanding	0.09			0.09			—			0.28			0.04			0.18			0.07

Summary Performance Ratios:
Return on average assets3	1.56		%	1.27		%	1.44		%	1.04		%	1.06		%	1.42		%	0.81		%
Return on average equity3	11.32			9.42			10.53			7.58			7.74			10.43			5.91
Return on average tangible common equity1, 3	17.72			15.18			17.17			12.84			13.27			16.70			10.56
Efficiency ratio	47.55			52.42			49.62			62.52			48.12			49.79			47.19
Net interest margin	3.26			3.11			3.22			3.29			3.32			3.20			3.42

Selected Performance Metrics - Operating:
Diluted operating EPS1	$	0.70		$	0.60		$	0.64		$	0.60		$	0.46		$	1.94		$	0.96
Pre-tax, pre-provision operating return on average assets1, 2	1.85		%	1.66		%	1.82		%	1.75		%	1.82		%	1.78		%	1.96		%
Operating return on average assets1, 3	1.48			1.29			1.46			1.35			1.06			1.41			0.76
Operating return on average tangible common equity1, 3	16.92			15.42			17.39			16.44			13.27			16.57			10.04
Operating efficiency ratio1	48.51			51.63			49.62			49.49			48.11			49.89			47.10

Veritex Holdings, Inc. Capital Ratios:
Average stockholders' equity to average total assets	13.75		%	13.46		%	13.69		%	13.67		%	13.72		%	13.63		%	13.66		%
Tangible common equity to tangible assets1	9.43			9.51			9.17			9.23			9.12			9.43			9.12
Tier 1 capital to average assets (leverage)	9.54			9.38			9.50			9.43			9.54			9.54			9.54
Common equity tier 1 capital	8.75			9.03			9.27			9.30			9.67			8.75			9.67
Tier 1 capital to risk-weighted assets	9.06			9.36			9.61			9.66			10.05			9.06			10.05
Total capital to risk-weighted assets	12.31			12.86			13.38			13.56			12.70			12.31			12.70

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

2 Dividend amount represents dividend paid per common share subsequent to each respective quarter end.

3 Annualized ratio for quarterly metrics.

VERITEX HOLDINGS, INC. AND SUBSIDIARIES

Financial Highlights

(In thousands)


	Sep 30, 2021		Jun 30, 2021		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020
	(unaudited)		(unaudited)		(unaudited)				(unaudited)
ASSETS


Cash and cash equivalents	$	229,712	$	390,027	$	468,029	$	230,825	$	128,767






Debt securities	1,103,745		1,125,877		1,077,860		1,055,201		1,091,440
Other investments	191,786		87,558		87,226		87,192		98,023

Loans held for sale	18,896		12,065		19,864		21,414		13,928
LHI, PPP loans, carried at fair value	135,842		291,401		407,353		358,042		405,465
LHI, MW	615,045		559,939		599,001		577,594		544,845
LHI, excluding MW and PPP	6,615,905		6,272,087		5,963,493		5,847,862		5,789,293
Total loans	7,385,688		7,135,492		6,989,711		6,804,912		6,753,531
ACL	(93,771)		(99,543)		(104,936)		(105,084)		(121,591)
Bank-owned life insurance	83,781		83,304		83,318		82,855		82,366
Bank premises, furniture and equipment, net	116,063		123,504		114,585		115,063		115,794
Other real estate owned (“OREO”)	—		2,467		2,337		2,337		5,796
Intangible assets, net of accumulated amortization	54,682		57,143		59,236		61,733		64,716
Goodwill	370,840		370,840		370,840		370,840		370,840
Other assets	129,774		72,856		89,304		114,997		112,693

Total assets	$	9,572,300	$	9,349,525	$	9,237,510	$	8,820,871	$	8,702,375
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Noninterest-bearing deposits	$	2,302,925	$	2,388,068	$	2,171,719	$	2,097,099	$	1,920,715
Interest-bearing transaction and savings deposits	3,228,306		3,112,974		3,189,693		2,958,456		2,821,945
Certificates and other time deposits	1,647,521		1,477,860		1,543,158		1,457,291		1,479,896
Total deposits	7,178,752		6,978,902		6,904,570		6,512,846		6,222,556
Accounts payable and other liabilities	66,571		55,499		55,902		61,928		69,540

Advances from Federal Home Loan Bank (“FHLB”)	777,601		777,640		777,679		777,718		1,082,756
Subordinated debentures and subordinated notes	262,761		262,766		262,774		262,778		140,158
Securities sold under agreements to repurchase	2,455		1,811		2,777		2,225		2,028

Total liabilities	8,288,140		8,076,618		8,003,702		7,617,495		7,517,038
Commitments and contingencies
Stockholders’ equity:
Common stock	559		558		557		555		555
Additional paid-in capital	1,137,889		1,134,603		1,131,324		1,126,437		1,124,148
Retained earnings	243,633		216,704		195,661		172,232		157,639

Accumulated other comprehensive income	69,661		77,189		62,413		56,225		47,155
Treasury stock	(167,582)		(156,147)		(156,147)		(152,073)		(144,160)
Total stockholders’ equity	1,284,160		1,272,907		1,233,808		1,203,376		1,185,337
Total liabilities and stockholders’ equity	$	9,572,300	$	9,349,525	$	9,237,510	$	8,820,871	$	8,702,375

VERITEX HOLDINGS, INC. AND SUBSIDIARIES

Financial Highlights

(In thousands, except per share data)


	For the Three Months Ended										For the Nine Months Ended
	Sep 30, 2021		Jun 30, 2021		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		Sep 30, 2021		Sep 30, 2020
Interest income:
Loans, including fees	$	71,139	$	67,814	$	67,399	$	69,597	$	68,685	$	206,352	$	216,986
Debt securities	7,613		7,529		7,437		7,652		7,852		22,579		23,074
Deposits in financial institutions and Fed Funds sold	130		167		127		99		65		424		1,122
Equity securities and other investments	898		672		663		752		827		2,233		2,568
Total interest income	79,780		76,182		75,626		78,100		77,429		231,588		243,750
Interest expense:
Transaction and savings deposits	1,588		1,661		1,980		2,105		2,105		5,229		11,128
Certificates and other time deposits	1,934		2,423		3,061		3,919		5,004		7,418		19,759
Advances from FHLB	1,848		1,829		1,812		2,222		2,707		5,489		8,387
Subordinated debentures and subordinated notes	3,134		3,138		3,138		3,088		1,743		9,410		5,444
Total interest expense	8,504		9,051		9,991		11,334		11,559		27,546		44,718
Net interest income	71,276		67,131		65,635		66,766		65,870		204,042		199,032
Provision for credit losses	—		—		—		—		8,692		—		56,640
(Benefit) provision for unfunded commitments	(448)		577		(570)		902		1,447		(441)		8,127
Net interest income after provisions	71,724		66,554		66,205		65,864		55,731		204,483		134,265
Noninterest income:
Service charges and fees on deposit accounts	4,484		3,847		3,629		3,971		3,130		11,960		9,732
Loan fees	1,746		1,823		1,341		684		1,787		4,910		5,027
(Loss) gain on sales of investment securities	(188)		—		—		(256)		(8)		(188)		2,871
Gain on sales of mortgage loans held for sale	407		385		507		317		472		1,299		922
Government guaranteed loan income, net	2,341		3,448		6,548		448		2,257		12,337		13,702

Equity method investment income	4,522		—		—		—		—		4,522		—
Other	2,315		2,953		2,147		3,848		2,157		7,415		6,078
Total noninterest income	15,627		12,456		14,172		9,012		9,795		42,255		38,332
Noninterest expense:
Salaries and employee benefits	22,964		23,451		22,932		20,011		20,553		69,347		59,442
Occupancy and equipment	4,536		4,233		4,096		4,116		3,980		12,865		12,247
Professional and regulatory fees	3,401		3,086		3,441		3,578		3,159		9,928		8,151
Data processing and software expense	2,494		2,536		2,319		2,238		2,452		7,349		6,975
Marketing	1,151		1,841		909		945		1,062		3,901		2,706
Amortization of intangibles	2,509		2,517		2,537		2,558		2,840		7,563		8,232
Telephone and communications	380		337		337		340		345		1,054		972

COVID expenses	—		—		—		—		132		—		1,377
Debt extinguishment costs	—		—		—		9,746		—		—		—
Other	3,886		3,716		3,026		3,841		1,885		10,628		11,912
Total noninterest expense	41,321		41,717		39,597		47,373		36,408		122,635		112,014
Income before income tax expense	46,030		37,293		40,780		27,503		29,118		124,103		60,583
Income tax expense	9,195		7,837		8,993		4,702		6,198		26,025		9,501
Net income	$	36,835	$	29,456	$	31,787	$	22,801	$	22,920	$	98,078	$	51,082



Basic EPS	$	0.75	$	0.60	$	0.64	$	0.46	$	0.46	$	1.98	$	1.02
Diluted EPS	$	0.73	$	0.59	$	0.64	$	0.46	$	0.46	$	1.95	$	1.02
Weighted average basic shares outstanding	49,423		49,476		49,394		49,571		49,647		49,431		49,989
Weighted average diluted shares outstanding	50,306		50,331		49,998		49,837		49,775		50,230		50,176

VERITEX HOLDINGS, INC. AND SUBSIDIARIES

Financial Highlights

(In thousands except percentages)


	For the Three Months Ended
	September 30, 2021						June 30, 2021						September 30, 2020
	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
Assets
Interest-earning assets:
Loans1	$	6,384,856	$	66,911	4.16	%	$	6,108,527	$	63,427	4.16	%	$	5,753,859	$	64,958	4.49	%
LHI, MW	465,945		3,697		3.15		455,334		3,476		3.06		358,248		2,705		3.00
PPP loans	210,092		531		1.00		364,020		911		1.00		407,112		1,022		1.00
Debt securities	1,119,952		7,613		2.70		1,095,678		7,529		2.76		1,101,469		7,852		2.84
Interest-bearing deposits in other banks	336,289		130		0.15		548,087		167		0.12		175,201		65		0.15
Equity securities and other investments	167,242		898		2.13		87,413		672		3.08		103,948		827		3.17
Total interest-earning assets	8,684,376		79,780		3.64		8,659,059		76,182		3.53		7,899,837		77,429		3.90
ACL	(99,482)						(105,050)						(116,859)
Noninterest-earning assets	800,576						767,270						802,948
Total assets	$	9,385,470					$	9,321,279					$	8,585,926

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand and savings deposits	$	3,201,409	$	1,588	0.20	%	$	3,191,405	$	1,661	0.21	%	$	2,735,170	$	2,105	0.31	%
Certificates and other time deposits	1,519,824		1,934		0.50		1,515,092		2,423		0.64		1,459,046		5,004		1.36
Advances from FHLB	777,617		1,848		0.94		777,655		1,829		0.94		1,067,771		2,707		1.01
Subordinated debentures and subordinated notes	264,714		3,134		4.70		264,931		3,138		4.75		142,432		1,743		4.87
Total interest-bearing liabilities	5,763,564		8,504		0.59		5,749,083		9,051		0.63		5,404,419		11,559		0.85

Noninterest-bearing liabilities:
Noninterest-bearing deposits	2,271,197						2,266,470						1,937,921
Other liabilities	60,181						51,355						65,704
Total liabilities	8,094,942						8,066,908						7,408,044
Stockholders’ equity	1,290,528						1,254,371						1,177,882
Total liabilities and stockholders’ equity	$	9,385,470					$	9,321,279					$	8,585,926

Net interest rate spread2					3.05	%					2.90	%					3.05	%
Net interest income			$	71,276					$	67,131					$	65,870
Net interest margin3					3.26	%					3.11	%					3.32	%

1 Includes average outstanding balances of loans held for sale of $8,542, $14,364 and $15,404 for the three months ended September 30, 2021, June 30, 2021, and September 30, 2020, respectively, and average balances of LHI, excluding MW and PPP loans.

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

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

VERITEX HOLDINGS, INC. AND SUBSIDIARIES

Financial Highlights

(In thousands except percentages)


	Nine Months Ended
	September 30, 2021						September 30, 2020
	Average Outstanding Balance		Interest Earned/ Interest Paid		Average Yield/ Rate		Average Outstanding Balance		Interest Earned/ Interest Paid		Average Yield/ Rate
Assets
Interest-earning assets:
Loans1	$	6,118,880	$	193,040	4.22	%	$	5,779,469	$	208,889	4.83	%
LHI, MW	477,319		10,988		3.08		275,890		6,318		3.06
PPP loans	309,620		2,324		1.00		236,778		1,779		1.00
Debt securities	1,093,263		22,579		2.76		1,086,185		23,074		2.84
Interest-bearing deposits in other banks	408,601		424		0.14		283,108		1,122		0.53
Equity securities and other investments	114,237		2,233		2.61		102,185		2,568		3.36
Total interest-earning assets	8,521,920		231,588		3.63		7,763,615		243,750		4.19
ACL	(103,478)						(90,633)
Noninterest-earning assets	799,207						776,790
Total assets	$	9,217,649					$	8,449,772

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand and savings deposits	$	3,144,395	$	5,229	0.22	%	$	2,680,925	$	11,128	0.55	%
Certificates and other time deposits	1,514,954		7,418		0.65		1,579,114		19,759		1.67
Advances from FHLB	777,655		5,489		0.94		1,070,856		8,387		1.05
Subordinated debentures and subordinated notes	264,998		9,410		4.75		143,387		5,444		5.07
Total interest-bearing liabilities	5,702,002		27,546		0.65		5,474,282		44,718		1.09

Noninterest-bearing liabilities:
Noninterest-bearing deposits	2,198,551						1,763,289
Other liabilities	60,456						57,737
Total liabilities	7,961,009						7,295,308
Stockholders’ equity	1,256,640						1,154,464
Total liabilities and stockholders’ equity	$	9,217,649					$	8,449,772

Net interest rate spread2					2.98	%					3.10	%
Net interest income			$	204,042					$	199,032
Net interest margin3					3.20	%					3.42	%

1 Includes average outstanding balances of loans held for sale of $13,140 and $16,448 for the nine months ended September 30, 2021 and September 30, 2020, respectively, and average balances of loans held for investment, excluding MW and PPP loans.

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

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

VERITEX HOLDINGS, INC. AND SUBSIDIARIES

Financial Highlights

Yield Trend


	For the Three Months Ended
	September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020		September 30, 2020
Average yield on interest-earning assets:
Loans1	4.16	%	4.16	%	4.31	%	4.48	%	4.49	%
LHI, MW	3.15		3.06		3.03		2.99		3.00
PPP loans	1.00		1.00		1.00		1.00		1.00
Debt securities	2.70		2.76		2.84		2.83		2.84
Interest-bearing deposits in other banks	0.15		0.12		0.15		0.15		0.15
Equity securities and other investments	2.13		3.08		3.08		3.13		3.17
Total interest-earning assets	3.64	%	3.53	%	3.71	%	3.85	%	3.90	%

Average rate on interest-bearing liabilities:
Interest-bearing demand and savings deposits	0.20	%	0.21	%	0.26	%	0.29	%	0.31	%
Certificates and other time deposits	0.50		0.64		0.82		1.06		1.36
Advances from FHLB	0.94		0.94		0.94		1.00		1.01
Subordinated debentures and subordinated notes	4.70		4.75		4.80		4.73		4.87
Total interest-bearing liabilities	0.59	%	0.63	%	0.72	%	0.82	%	0.85	%

Net interest rate spread2	3.05	%	2.90	%	2.99	%	3.03	%	3.05	%
Net interest margin3	3.26	%	3.11	%	3.22	%	3.29	%	3.32	%

1Includes average outstanding balances of loans held for sale of $8,542, $14,364, $16,602, $11,938 and $15,404 for the three months ended September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020, respectively, and average balances of LHI, excluding MW and PPP loans.

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

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

Supplemental Yield Trend


	For the Three Months Ended
	September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020		September 30, 2020
Average cost of interest-bearing deposits	0.30	%	0.35	%	0.45	%	0.55	%	0.67	%
Average costs of total deposits, including noninterest-bearing	0.20		0.23		0.31		0.38		0.46

VERITEX HOLDINGS, INC. AND SUBSIDIARIES

Financial Highlights

(In thousands except percentages)

Total LHI and Deposit Portfolio Composition


	September 30, 2021					June 30, 2021					March 31, 2021					December 31, 2020					September 30, 2020
	(Dollars in thousands)
LHI1

Commercial	$	1,812,679		27.4	%	$	1,771,100		28.2	%	$	1,632,040		27.4	%	$	1,559,546		26.7	%	$	1,623,249		28.0	%

Real Estate:
Owner occupied commercial (“OOCRE”)	711,476			10.7		744,899			11.9		733,310			12.3		717,472			12.3		734,939			12.7
Non-owner occupied commercial (“NOOCRE)	2,175,499			32.8		1,986,538			31.6		1,970,945			33.0		1,904,132			32.5		1,817,013			31.4
Construction and land	936,174			14.1		871,765			13.9		723,444			12.1		693,030			11.8		623,496			10.8
Farmland	73,550			1.1		13,661			0.2		14,751			0.2		13,844			0.2		14,413			0.2
1-4 family residential	543,518			8.2		513,635			8.2		492,609			8.3		524,344			9.0		548,953			9.5
Multi-family residential	356,885			5.4		367,445			5.9		386,844			6.5		424,962			7.3		412,412			7.0
Consumer	14,266			0.2		10,530			0.1		12,431			0.2		13,000			0.2		14,127			0.2
Total LHI	$	6,624,047		100	%	$	6,279,573		100	%	$	5,966,374		100	%	$	5,850,330		100	%	$	5,788,602		100	%

MW	615,045					559,939					599,001					577,594					544,845
PPP loans	135,842					291,401					407,353					358,042					405,465

Total LHI1	$	7,374,934				$	7,130,913				$	6,972,728				$	6,785,966				$	6,738,912

Deposits
Noninterest-bearing	$	2,302,925		32.1	%	$	2,388,068		34.3	%	$	2,171,719		31.6	%	$	2,097,099		32.2	%	$	1,920,715		30.9	%
Interest-bearing transaction	514,537			7.2		451,307			6.5		463,343			6.7		453,110			7.0		450,739			7.2
Money market	2,585,926			36.0		2,539,061			36.4		2,602,903			37.7		2,398,526			36.8		2,267,191			36.4
Savings	127,843			1.8		122,606			1.8		123,447			1.8		106,820			1.6		104,015			1.7
Certificates and other time deposits	1,647,521			22.9		1,477,860			21.2		1,543,158			22.3		1,457,291			22.3		1,479,896			23.7
Total deposits	$	7,178,752		100	%	$	6,978,902		100	%	$	6,904,570		100	%	$	6,512,846		100	%	$	6,222,556		100	%

Loan to Deposit Ratio	102.7		%			102.2		%			101.0		%			104.2		%			108.3		%

Loan to Deposit Ratio, excluding MW and PPP loans	92.3		%			90.0		%			86.4		%			89.8		%			93.0		%

1 Total LHI does not include deferred fees of $8.1 million, $7.5 million, $2.9 million and $2.5 million at September 30, 2021, June 30, 2021, March 31, 2021 and December 31, 2020, respectively, or deferred costs of $691 thousand at September 30, 2020.

VERITEX HOLDINGS, INC. AND SUBSIDIARIES

Financial Highlights

(In thousands except percentages)

Asset Quality


	For the Three Months Ended															For the Nine Months Ended
	Sep 30, 2021			Jun 30, 2021			Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Sep 30, 2021			Sep 30, 2020
	(Dollars in thousands)
NPAs:
Nonaccrual loans	$	72,317		$	76,994		$	73,594		$	81,096		$	88,877		$	72,317		$	88,877
Accruing loans 90 or more days past due1	1,711			462			9,093			4,204			1,689			1,711			1,689
Total nonperforming loans held for investment (“NPLs”)	74,028			77,456			82,687			85,300			90,566			74,028			90,566
OREO	—			2,467			2,337			2,337			5,796			—			5,796
Total NPAs	$	74,028		$	79,923		$	85,024		$	87,637		$	96,362		$	74,028		$	96,362

Charge-offs:
Residential	$	(64)		$	(300)		$	(15)		$	(18)		$	—		$	(379)		$	—
OOCRE	(813)			(689)			—			—			(2,421)			(1,502)			(2,421)
NOOCRE	—			—			—			(2,865)			—
Commercial	(5,508)			(5,608)			(346)			(13,699)			(68)			(11,462)			(1,808)
Consumer	(17)			(20)			(18)			(26)			(11)			(55)			(136)
Total charge-offs	(6,402)			(6,617)			(379)			(16,608)			(2,500)			(13,398)			(4,365)

Recoveries:
Residential	26			29			3			49			7			58			8
OOCRE	—			500			—			—			—			500			—
Commercial	596			659			226			52			14			1,481			50
Consumer	8			36			2			—			13			46			287
Total recoveries	630			1,224			231			101			34			2,085			345

Net charge-offs	$	(5,772)		$	(5,393)		$	(148)		$	(16,507)		$	(2,466)		$	(11,313)		$	(4,020)

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

ACL at end of period	$	93,771		$	99,543		$	104,936		$	105,084		$	121,591		$	93,771		$	121,591



Asset Quality Ratios:
NPAs to total assets	0.77		%	0.85		%	0.92		%	0.99		%	1.11		%	0.77		%	1.11		%
NPLs to total LHI, excluding MW and PPP loans	1.12			1.23			1.39			1.46			1.56			1.12			1.56
ACL to total LHI, excluding MW and PPP loans	1.42			1.59			1.76			1.80			2.10			1.42			2.10

Net charge-offs to average loans outstanding	0.09			0.09			—			0.28			0.04			0.18			0.07

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

VERITEX HOLDINGS, INC. AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures

(Unaudited)

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

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

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

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

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


	As of
	Sep 30, 2021		Jun 30, 2021		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020
	(Dollars in thousands, except per share data)
Tangible Common Equity
Total stockholders' equity	$	1,284,160	$	1,272,907	$	1,233,808	$	1,203,376	$	1,185,337
Adjustments:
Goodwill	(370,840)		(370,840)		(370,840)		(370,840)		(370,840)
Core deposit intangibles	(50,436)		(52,873)		(55,311)		(57,758)		(60,209)
Tangible common equity	$	862,884	$	849,194	$	807,657	$	774,778	$	754,288
Common shares outstanding	49,229		49,498		49,433		49,340		49,650

Book value per common share	$	26.09	$	25.72	$	24.96	$	24.39	$	23.87
Tangible book value per common share	$	17.53	$	17.16	$	16.34	$	15.70	$	15.19

VERITEX HOLDINGS, INC. AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures

(Unaudited)

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

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

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


	As of
	Sep 30, 2021			Jun 30, 2021			Mar 31, 2021			Dec 31, 2020			Sep 30, 2020
	(Dollars in thousands)
Tangible Common Equity
Total stockholders' equity	$	1,284,160		$	1,272,907		$	1,233,808		$	1,203,376		$	1,185,337
Adjustments:
Goodwill	(370,840)			(370,840)			(370,840)			(370,840)			(370,840)
Core deposit intangibles	(50,436)			(52,873)			(55,311)			(57,758)			(60,209)
Tangible common equity	$	862,884		$	849,194		$	807,657		$	774,778		$	754,288
Tangible Assets
Total assets	$	9,572,300		$	9,349,525		$	9,237,510		$	8,820,871		$	8,702,375
Adjustments:
Goodwill	(370,840)			(370,840)			(370,840)			(370,840)			(370,840)
Core deposit intangibles	(50,436)			(52,873)			(55,311)			(57,758)			(60,209)
Tangible Assets	$	9,151,024		$	8,925,812		$	8,811,359		$	8,392,273		$	8,271,326
Tangible Common Equity to Tangible Assets	9.43		%	9.51		%	9.17		%	9.23		%	9.12		%

VERITEX HOLDINGS, INC. AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures

(Unaudited)

Return on Average Tangible Common Equity. Return on average tangible common equity is a non-GAAP measure generally used by financial analysts and investment bankers to evaluate financial institutions. We calculate: (a) net income available for common stockholders adjusted for amortization of core deposit intangibles (which we refer to as “return”) as net income, plus amortization of core deposit intangibles, less tax benefit at the statutory rate; (b) average tangible common equity as total average stockholders’ equity less average goodwill and average core deposit intangibles, net of accumulated amortization; and (c) return on average tangible common equity as 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 goodwill and 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 Three Months Ended															For the Nine Months Ended
	Sep 30, 2021			Jun 30, 2021			Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Sep 30, 2021			Sep 30, 2020
	(Dollars in thousands)
Net income available for common stockholders adjusted for amortization of core deposit intangibles
Net income	$	36,835		$	29,456		$	31,787		$	22,801		$	22,920		$	98,078		$	51,082
Adjustments:
Plus: Amortization of core deposit intangibles	2,438			2,438			2,447			2,451			2,451			7,323			7,353
Less: Tax benefit at the statutory rate	512			512			514			515			515			1,538			1,545
Net income available for common stockholders adjusted for amortization of core deposit intangibles	$	38,761		$	31,382		$	33,720		$	24,737		$	24,856		$	103,863		$	56,890

Average Tangible Common Equity
Total average stockholders' equity	$	1,290,528		$	1,254,371		$	1,224,294		$	1,196,274		$	1,177,882		$	1,256,640		$	1,154,464
Adjustments:
Average goodwill	(370,840)			(370,840)			(370,840)			(370,840)			(370,840)			(370,840)			(370,840)
Average core deposit intangibles	(52,043)			(54,471)			(56,913)			(59,010)			(61,666)			(54,458)			(64,077)
Average tangible common equity	$	867,645		$	829,060		$	796,541		$	766,424		$	745,376		$	831,342		$	719,547
Return on Average Tangible Common Equity (Annualized)	17.72		%	15.18		%	17.17		%	12.84		%	13.27		%	16.70		%	10.56		%

VERITEX HOLDINGS, INC. AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures

(Unaudited)

Operating Earnings, Pre-tax, Pre-provision Operating Earnings and performance metrics calculated using Operating Earnings and Pre-tax, Pre-provision Operating Earnings, including Diluted Operating Earnings per Share, Operating Return on Average Assets, Pre-tax, Pre-Provision Operating Return on Average Assets, Operating Return on Average Tangible Common Equity and Operating Efficiency Ratio. Operating earnings, pre-tax, pre-provision operating earnings and the performance metrics calculated using these metrics, listed below, are non-GAAP measures used by management to evaluate the Company’s financial performance. We calculate (a) operating earnings as net income plus severance payments, plus loss (gain) on sale of securities, net, plus debt extinguishment costs, less Thrive PPP loan forgiveness income, less tax impact of adjustments, plus nonrecurring tax adjustments. We calculate (b) diluted operating earnings per share as operating earnings as described in clause (a) divided by weighted average diluted shares outstanding. We calculate (c) pre-tax, pre-provision operating earnings as operating earnings as described in clause (a) plus provision for income taxes, plus provision for loan losses. 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 average total assets. We calculate (e) operating return on average assets as operating earnings as described in clause (a) divided by average total assets. We calculate (f) operating return on average tangible common equity as operating earnings as described in clause (a), adjusted for the amortization of intangibles and tax benefit at the statutory rate, divided by total average tangible common equity (average stockholders’ equity less average goodwill and average core deposit intangibles, net of accumulated amortization). We calculate (g) operating efficiency ratio as noninterest expense plus adjustments to operating noninterest expense divided by (i) noninterest income plus adjustments to operating noninterest income plus (ii) 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 Three Months Ended										For the Nine Months Ended
	Sep 30, 2021		Jun 30, 2021		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		Sep 30, 2021		Sep 30, 2020
	(Dollars in thousands)
Operating Earnings
Net income	$	36,835	$	29,456	$	31,787	$	22,801	$	22,920	$	98,078	$	51,082
Plus: Severance payments1	—		627		—		—		—		627		—
Plus: Loss (gain) on sale of securities available for sale, net	188		—		—		256		8		188		(2,871)

Plus: Debt extinguishment costs2	—		—		—		9,746		—		—		1,561
Less: Thrive PPP loan forgiveness income3	1,912		—		—		—		—		1,912		—


Operating pre-tax income	35,111		30,083		31,787		32,803		22,928		96,981		49,772
Less: Tax impact of adjustments	39		131		—		2,100		—		170		(277)


Plus: Nonrecurring tax adjustments4	—		—		426		(973)		—		426		(1,799)
Operating earnings	$	35,072	$	29,952	$	32,213	$	29,730	$	22,928	$	97,237	$	48,250

Weighted average diluted shares outstanding	50,306		50,331		49,998		49,837		49,775		50,230		50,176
Diluted EPS	$	0.73	$	0.59	$	0.64	$	0.46	$	0.46	$	1.95	$	1.02
Diluted operating EPS	0.70		0.60		0.64		0.60		0.46		1.94		0.96

1 Severance payments relate to branch restructurings made during the three months ended June 30, 2021.

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

3 During the third quarter of 2021, Thrive’s PPP loan with another bank was 100% forgiven by the SBA. As a result of our 49% investment in Thrive, the $1.9 million represents our portion of the PPP loan forgiveness. PPP fee income is not taxable and as such has no tax impact.

4 A nonrecurring tax adjustment of $426 thousand recorded in the first quarter of 2021 was due to a true-up of a deferred tax liability. 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 Bancorp, Inc. tax return to carry back a net operating loss ("NOL") incurred by Green Bancorp, Inc. on January 1, 2019. The Company was allowed to carry back this NOL as result of a provision in the CARES Act, which permits (“NOL”) generated in tax years 2018, 2019 or 2020 to be carried back five years.


	For the Three Months Ended															For the Nine Months Ended
	Sep 30, 2021			Jun 30, 2021			Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Sep 30, 2021			Sep 30, 2020
	(Dollars in thousands)
Pre-Tax, Pre-Provision Operating Earnings
Net income	$	36,835		$	29,456		$	31,787		$	22,801		$	22,920		$	98,078		$	51,082
Plus: Provision (benefit) for income taxes	9,195			7,837			8,993			4,702			6,198			26,025			9,501
Plus: (Benefit) provision for credit losses and unfunded commitments	(448)			577			(570)			902			10,139			(441)			64,767
Plus: Severance payments	—			627			—			—			—			627			—
Plus: Loss (gain) on sale of securities, net	188			—			—			256			8			188			(2,871)

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

Less: Thrive PPP loan forgiveness income	1,912			—			—			—			—			1,912			—
Pre-tax, pre-provision operating earnings	$	43,858		$	38,497		$	40,210		$	38,407		$	39,265		$	122,565		$	124,040

Average total assets	$	9,385,470		$	9,321,279		$	8,941,271		$	8,750,141		$	8,585,926		$	9,217,649		$	8,449,772
Pre-tax, pre-provision operating return on average assets1	1.85		%	1.66		%	1.82		%	1.75		%	1.82		%	1.78		%	1.96		%

Average total assets	$	9,385,470		$	9,321,279		$	8,941,271		$	8,750,141		$	8,585,926		$	9,217,649		$	8,449,772
Return on average assets1	1.56		%	1.27		%	1.44		%	1.04		%	1.06		%	1.42		%	0.81		%
Operating return on average assets1	1.48			1.29			1.46			1.35			1.06			1.41			0.76

Operating earnings adjusted for amortization of core deposit intangibles
Operating earnings	$	35,072		$	29,952		$	32,213		$	29,730		$	22,928		$	97,237		$	48,250
Adjustments:
Plus: Amortization of core deposit intangibles	2,438			2,438			2,447			2,451			2,451			7,323			7,353
Less: Tax benefit at the statutory rate	512			512			514			515			515			1,538			1,545
Operating earnings adjusted for amortization of core deposit intangibles	$	36,998		$	31,878		$	34,146		$	31,666		$	24,864		$	103,022		$	54,058

Average Tangible Common Equity
Total average stockholders' equity	$	1,290,528		$	1,254,371		$	1,224,294		$	1,196,274		$	1,177,882		$	1,256,640		$	1,154,464
Adjustments:
Less: Average goodwill	(370,840)			(370,840)			(370,840)			(370,840)			(370,840)			(370,840)			(370,840)
Less: Average core deposit intangibles	(52,043)			(54,471)			(56,913)			(59,010)			(61,666)			(54,458)			(64,077)
Average tangible common equity	$	867,645		$	829,060		$	796,541		$	766,424		$	745,376		$	831,342		$	719,547
Operating return on average tangible common equity1	16.92		%	15.42		%	17.39		%	16.44		%	13.27		%	16.57		%	10.04		%





Efficiency ratio	47.55		%	52.42		%	49.62		%	62.52		%	48.12		%	49.79		%	47.19		%






Operating efficiency ratio
Net interest income	71,276			67,131			65,635			66,766			65,870			204,042			199,032
Noninterest income	15,627			12,456			14,172			9,012			9,795			42,255			38,332
Plus: Loss (gain) on sale of securities available for sale, net	188			—			—			256			8			188			(2,871)
Less: Thrive’s PPP loan forgiveness income	1,912			—			—			—			—			1,912			—
Operating noninterest income	13,903			12,456			14,172			9,268			9,803			40,531			35,461
Noninterest expense	41,321			41,717			39,597			47,373			36,408			122,635			112,014
Less: Severance payments	—			627			—			—			—			627			—
Less: Debt extinguishment costs	—			—			—			9,746			—			—			1,561
Operating noninterest expense	$	41,321		$	41,090		$	39,597		$	37,627		$	36,408		$	122,008		$	110,453
Operating efficiency ratio	48.51		%	51.63		%	49.62		%	49.49		%	48.11		%	49.89		%	47.10		%

1 Annualized ratio.

a3q21investordeckfinal

3rd Quarter Earnings Conference Call October 27, 2021 Veritex Holdings, Inc.

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 Veritex Holdings, Inc.’s (“Veritex”) recent investment in Thrive Mortgage, the expected payment date of Veritex’s quarterly cash dividend, the expected timing of completion of Veritex's acquisition of North Avenue Capital, LLC (“NAC”), 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. Further, certain important factors could affect future results and cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, the possibility that Veritex's acquisition of NAC does not close when expected or at all because required regulatory, shareholder or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all, the failure to close for any other reason, that the businesses of Veritex and NAC will not be integrated successfully, that the cost savings and any synergies from the proposed acquisition may not be fully realized or may take longer to realize than expected, disruption from the proposed acquisition making it more difficult to maintain relationships with employees, customers or other parties with whom Veritex or NAC have business relationships, diversion of management time on acquisition-related issues, the reaction to the transaction of the companies' customers, employees and counterparties and other factors, many of which are beyond the control of Veritex and NAC. 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, 2020 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 Veritex’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 (“TBVPS”); • Tangible common equity to tangible assets; • Return on average tangible common equity (“ROATCE”); • Operating earnings; • Pre-tax, pre-provision (“PTPP”) operating earnings; • Diluted operating earnings per share (“EPS”); • Operating return on average assets (“ROAA”); • PTPP operating ROAA; • Operating ROATCE; • Operating efficiency ratio; • Operating noninterest income; • Operating noninterest expense; and • 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 Solid Loan and Deposit Growth Capital Summary • Net income of $36.8 million, or $0.73 diluted EPS, for 3Q21 compared to $29.5 million, or $0.59 diluted EPS, for 2Q21 • Operating earnings1 of $35.1 million, or $0.70 diluted operating EPS1, for 3Q21 compared to $30.0 million, or $0.60 diluted operating EPS, for 2Q21 • Return on average equity of 11.32% in 3Q21 and 10.43% YTD • Operating ROATCE1 of 16.92% in 3Q21 and 16.57% YTD • Total loans held for investment (“LHI”), excluding mortgage warehouse (“MW”) and Paycheck Protection Program (“PPP”) loans, increased $343.8 million, or 21.9% linked quarter annualized (“LQA”) • Total LHI, excluding MW and PPP, grew $768.0 million from December 31, 2020, or 17.5% annualized, and $826.6 million, or 14.3%, year over year (“YOY”) • Total deposits grew $199.9 million, or 11.4% LQA, and $956.2 million, or 15.4%, YOY • Average cost of total deposits decreased to 0.20% for 3Q21 from 0.46% for 3Q20 • Book value per common share increased to $26.09 from $25.72 at June 30, 2021 • Tangible book value per common share1 increased to $17.53 from $17.16 at June 30, 2021 • Repurchased 328,122 shares at an average price of $34.85 during 3Q21 and extended the Stock Buyback Program to December 31, 2022 • Declared quarterly dividend of $0.20 payable on November 23, 2021 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. 4 Third Quarter Overview Diversifying Revenue • Completed 49% investment in Thrive Mortgage (“Thrive”) in 3Q21 • Announced acquisition of North Avenue Capital, LLC (“NAC”), a regulated non-depository government guaranteed lender, on September 21, 2021. Transaction will close Nov. 1, 2021

Key Financial Metrics 62.52% 52.42% 48.11% 49.49% 49.62% 51.63% 48.51% 3Q20 4Q20 1Q21 2Q21 3Q21 Reported Operating Efficiency Ratio 1.04% 1.44% 1.27% 1.56% 1.29% 1.82% 1.75% 1.82% 1.66% 1.85% 3Q20 4Q20 1Q21 2Q21 3Q21 Reported Operating ROAA PTPP Operating 1.06% 1.35% 1.46% 1.48% $15.19 $15.70 $16.34 $17.16 $17.53 3Q20 4Q20 1Q21 2Q21 3Q21 NPAs / Total Assets Return on Average Tangible Common Equity1 $0.46 $0.46 $0.73 $0.64 $0.60 3Q20 4Q20 1Q21 2Q21 3Q21 Diluted EPS Diluted Operating EPS $0.60 $0.59 13.27% 12.84% 17.17% 15.18% 17.72% 3Q20 4Q20 1Q21 2Q21 3Q21 ROATCE Operating ROATCE Diluted EPS Tangible Book Value per Common Share1 5 ($ in millions) $96.4 $87.6 $85.0 $79.9 $74.0 1.11% 0.99% 0.92% 0.85% 0.77% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 3Q20 4Q20 1Q21 2Q21 3Q21 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 1 1 17.39% ROAA 1 $0.70 16.44% 48.12% 47.55% 16.92% -30% 15.42%

3.70% weighted average rate of new and renewed Q3 loan production, excluding MW and PPP Loan Growth 6 $1.2 Billion ($ in billions) 1 Excludes MW and PPP and represents portfolios with growth for the respective periods. 2 Year to date annualized (“YTDA”) $0.0 $0.5 $1.0 $1.5 $2.0 Oct Nov Dec Jan Feb Mar Apr May Jun July Aug Sept CRE ADC Construction LOC Current Unfunded (Non Revolving) 2021 Unfunded 2020 Unfunded $1.76 Billion 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 Total Loans, exc. MW and PPP +5.9% +8.1% -8.7% +4.4% +4.0% +7.9% +20.7% Quarterly Loan Growth (annualized, excludes MW and PPP) +38.0% +29.6% +1.3% +23.3% NOOCRE Construction C&I & OOCRE 1-4 Resi LQA Growth1 YTDA Growth1,2 ($ in thousands) $6.6 B $5.7 B +21.9% +19.0% +46.8% +14.5% +4.9% COVID-19 Declared a Pandemic 35% 40% 45% 50% 55% 60% Revolving C&I Utilization 2020 2021 Down 849 bps from peak

3rd Quarter Loan Production 7 $538.5 $298.9 $404.8 $48.7 $42.5 Construction C&I CRE 1-4 Resi Other $1.33 Billion in Q3 Production by Portfolio ($ in millions, excludes PPP) $718,082 $436,866 $574,889 $655,616 $1,152,644 $923,347 $1,355,582 $1,333,398 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 Total Loans, exc. MW and PPP Quarterly Commitment Production ($ in thousands) Data as of September 30, 2021 $688.3 $321.7 $180.6 $94.7 $70.2 2Q21 Production 3Q21 Production 206 210 218 220 231 3Q20 4Q20 1Q21 2Q21 3Q21 Production Team Headcount + 11 QOQ + 25 YOY 3Q20 3Q21 % of Total Production 70% 42% Wavg LTV 49% 52% Wavg LTC 62% 63% Wavg DSCR 1.65 1.66 Production Mix 58% Industrial / 42% Multifamily 69% Industrial / 31% Multifamily Existing Customers 60% 58% Construction Production Details > $10 Million

Net Interest Income 8 $66.8 $65.6 $67.1 $71.3 3.32% 3.29% 3.22% 3.11% 3.26% 3.10% 3.15% 3.12% 3.03% 3.16% 3Q20 4Q20 1Q21 2Q21 3Q21 Net Interest Income ("NII") NIM Adjusted NIM (Excludes All Purchase Accounting) $65.8 $8,066 $8,257 $8,659 $8,684 3Q20 4Q20 1Q21 2Q21 3Q21 Average Earning Assets $7,900 Average Earning Assets Net Interest Income Rollforward ($ in thousands) ($ in millions) ($ in millions) 2Q21 Net Interest Income $67,131 Loan Volume 2,286 Day Count 736 Deposit Rates 615 Purchase Accounting Accretion 351 Change in earning asset mix 171 Other < 14 > 3Q21 Net Interest Income $71,276 Floating Rate Loan Repricing Floor Reprice Grouping ($ in thousands) Total Balance % of Total Balance Cumulative % of Total Balance No Floor $ 2,575.5 52.6% 52.6% Floor reached 1,949.7 37.2% 89.8% 0-25 bps to Reprice 51.7 1.0% 90.8% 26-50 bps to Reprice 26.8 0.5% 91.3% 51-75 bps to Reprice 85.7 1.6% 92.9% 76-100 bps to Reprice 234.9 4.5% 97.4% 101-125 bps to Reprice 10.9 0.2% 97.6% 126-150 bps to Reprice 14.6 0.3% 97.9% 151+ bps to Reprice 112.6 2.1% 100% Totals $ 5,243.9 100% Asset Sensitivity as of September 30, 2021 -1.3% +3.7% +9.4% +15.3% +21.2% -3.0% 2.0% 7.0% 12.0% 17.0% 22.0% 27.0% -100 Shock +100 Shock +200 Shock +300 Shock +400 Shock Static Shock Impact on NII 1 6.2% 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 Income1 9 Change in Operating Noninterest Income Quarter-over-Quarter Quarter-over-Quarter Commentary • Equity method investment income was $2,610 which represents our 49% investment in Thrive which closed during 3Q21 • Deposit service charges increased 17% primarily related to additional analysis charges during 3Q21 • Government guaranteed loan income, net, decreased 32%, primarily as a result of a $774 thousand decrease in PPP income during 3Q21 compared to 2Q21 12% -32% -22% -4% 6% 17% 100% +1,447 ($1,107) ($77) ($638) +$22 +637 +$2,610 Total Govt. guar. loan income, net: Loan fees: Other: Gain on sales of MLHFS: Deposit svc. chgs: Equity method invst. Income: $9,541 $10,831 $13,051 3Q20 2Q21 3Q21 Total Operating Noninterest Income, exc. PPP income2 Equity method invst. Income 31% Service charges and fees on deposits 31% Govt. guar. loan income, net 28% Loan fees 15% Gain on sale of MLHFS 2% Other, 24% 3Q21 Operating Noninterest Income Breakdown + 32.3% ($ in thousands) ($ in thousands) 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 Excludes PPP income of $712 thousand, $1.6 million, and $262 thousand as of September 30, 2021, June 30, 2021, and September 30, 2020, respectively. PPP income includes upfront fees and changes in fair value recognized as the Company elected to report PPP loans at fair value using the fair value option. 3 Excludes $1.9 million of PPP loan forgiveness income received by Thrive during the third quarter of 2021. 3

Operating Noninterest Expense1 10 Change in Operating Noninterest Expense Quarter-over-Quarter Quarter-over-Quarter Commentary • Professional and regulatory fees increased 10% as a result of a $317 thousand increase in FDIC assessment fees driven by growth • Marketing decreased 37% from 2Q21, primarily resulting from $842 thousand in annual sponsorship fees paid in 2Q21 0.6% -37% -2% 1% 3% 7% 10% +$231 ($690) ($42) +$140 +$205 +$303 +$315 Total Marketing Data processing and software expense Salaries and employee benefits Other Occupancy and equipment Professional and regulatory fees ($ in thousands) 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.

0.67% 0.55% 0.45% 0.35% 0.30% 0.46% 0.38% 0.31% 0.23% 0.20% 3Q20 4Q20 1Q21 2Q21 3Q21 Average cost of interest-bearing deposits Average cost of total deposits Cost of Interest-bearing Deposits and Total Deposits  Total deposit balances increased $199.9 million, or 11.4% LQA, and increased $1.0 billion, or 15.4% YOY  Total deposit cost down 3 bps compared to 2Q21 due to pricing diligence and product mix  Excluding MW and PPP loans, the loan to deposit ratio was 92.3% at September 30, 2021  3Q21 weighted average of interest-bearing deposit rate of 21 bps on production Certificates & Time Maturity Table $2,822 $3,113 $3,228 $1,921 $2,388 $2,303 $1,480 $1,478 $1,648 3 Q 2 0 2 Q 2 1 3 Q 2 1 Interest Bearing Non-Int Bearing Certificates & Time Deposits Deposits Composition 44.9% 32.1% 23.0% $6,223 $7,179 $6,979 Deposit Growth LQA YOY Demand & Savings +3.7% +14.4% Non-Int Bearing -3.6% +19.9% Certificates and Time Deposits +11.5% +11.3% 11 ($ in millions) Balance ($000s) W A Rate Q4 2021 336,873 0.54% Q1 2022 318,951 0.52% Q2 2022 171,081 0.37% Q3 2022 218,571 0.30% Q4 2022 106,694 0.34% Q1 2023 160,396 0.32% Q2 2023 98,299 0.36% Q3 2023 201,657 0.29% Q4 2023+ 35,000 1.58% Total 1,647,521 0.43%

Capital Overview 12 11.12% 10.56% 11.34% 10.56% 9.54% 9.06% 12.31% 8.75% Leverage Ratio Tier 1 Ratio Total Capital Ratio CET1 Bank VBTX 1 Estimated capital measures inclusive of CECL capital transition provisions as of September 30, 2021 and June 30, 2021. 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 September 30, 2021 $0.75 $0.05 $0.05 $17.16 $(0.11) $(0.01) TBVPS Rollforward $17.53 $(0.20) $(0.12) $(0.04) VBTX Amounts ($ in thousands) September 30, 2021 June 30, 2021 $ Change Basel III Standardized1 CET1 capital 825,001$ 804,619$ 20,382$ CET1 capital ratio 8.75% 9.03% Leverage capital 854,393$ 833,956$ 20,437$ Leverage capital ratio 9.54% 9.38% Tier 1 capital 854,393$ 833,956$ 20,437$ Tier 1 capital ratio 9.06% 9.36% Total capital 1,160,589$ 1,146,015$ 14,574$ Total capital ratio 12.31% 12.86% Risk weighted assets 9,419,819$ 8,913,134$ 506,685$ Total assets2 9,572,300$ 9,349,525$ 222,775$ Tangible common equity / Tangible assets3 9.43% 9.51%

Thrive Mortgage Investment Quarterly 2021 Financial Information ($ in thousands) 3Q21 2Q21 Loans HFS 162,678 154,622 Total Assets 235,393 223,635 Members Equity 45,329 47,112 Pre-Tax Income 9,2291 5,233 3Q20 4Q20 1Q21 2Q21 3Q21 Purchase Refinance unaudited unaudited 2Q21 3Q21 YTD 2020 YTD 2021 $786.2 Quarterly and YTD Volume ($ in millions) 5.59% 4.98% 4.79% 3.62% 3.80% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0% 3Q20 4Q20 1Q21 2Q21 3Q21 Origination/Seconday Income GOS % Income and GOS % $33.6 $38.8 $34.0 ($ in millions) $28.6 Purchased v. Refinance 36% 48% 49% 64% 52% 51% 25% 75% 49% Investment Completed 3Q21 $2,299.6 $1,432.4 $797.9($ in millions) 13 28% 72% $797.9 $36.7 1. Includes $3.8 million of PPP loan forgiveness received during the third quarter of 2021.

14 • 100% cash transaction • Purchase price is based on minimum closing tangible equity of $25 million, where any shortfall would be deducted from the purchase price dollar for dollar • $5 million in cash to be held in escrow and paid out on the third anniversary of close based on the asset quality performance of the existing portfolio and pipeline at close • Transaction will close on November 1, 2021 Transaction Overview Valuation ($ in millions) Purchase Price (including holdback) $62.5 Deal Value / Tangible Common Equity1 2.50x Deal Value / 2022E Net Income 5.4x Transaction Impact 2022E EPS Accretion 8.1% Change in 2022E ROATCE +178bps TBV Dilution2 | Earnback (4.3%) | 3.3 yrs Internal Rate of Return >20% Change in CET1 Ratio at Close (43bps) 1. Assumes a 35% tax rate before 2018 and a 21% tax rate starting in 2018. 2. 2021 actuals as of the nine months ended September 30, 2021. Meaningful strategic expansion into the fragmented USDA lending space Diversification of Veritex’s revenue streams Enhanced profitability outlook Strong cultural fit NAC Transaction Loan Pipeline - $397 million Net Income1 ($ in millions) 2 $36 $148 $64 $149 $0.3 $1.0 $3.0 $1.3 $6.8 $9.6 $11.6 2016A 2017A 2018A 2019A 2020A 2021E 2022E Actuals Projections Approved Underwriting Term Sheet Issued Prospects ($ in millions) $12.8

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. 3Q20 4Q20 1Q21 2Q21 3Q21 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 and ACL 15 ($ in thousands) 3Q20 4Q20 1Q21 2Q21 3Q21 Acquired $2,421 $16,462 $130 $4,124 $5,652 Originated $45 $45 $18 $1,269 $120 Net Charge-offs ($ in thousands) Totals $11,738 $18,691 $121.6 $105.1 $104.9 $99.5 $93.8 2.10% 1.80% 1.76% 1.59% 1.42% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3Q20 4Q20 1Q21 2Q21 3Q21 ACL ACL/Total Loans ACL / Total Loans2 ($ in millions) $22,637 $10,017 Quarterly Criticized Loans $497.6 $449.0 $418.1 $388.5 $373.4 3Q20 4Q20 1Q21 2Q21 3Q21 $100 $200 $300 $400 $500 Criticized Loans ($ in millions, excludes PCD loans) DOWN 25.0% $16,508

Veritex Holdings, Inc. Supplemental Information

17 Reconciliation of Non-GAAP Financial Measures

18 Reconciliation of Non-GAAP Financial Measures

19 Reconciliation of Non-GAAP Financial Measures

20 Reconciliation of Non-GAAP Financial Measures

21 Reconciliation of Non-GAAP Financial Measures

22 Reconciliation of Non-GAAP Financial Measures 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020 9/30/2021 9/30/2020 Operating noninterest income Noninterest income $ 15,627 $ 12,456 $ 14,172 $ 9,012 $ 9,795 $ 42,255 $ 38,332 Plus: Loss (gain) on sale of securities available for sale, net 188 - - 256 8 188 (2,871) Less: Thrive PPP loan forgiveness income 1,912 - - - - 1,912 - Operating noninterest income $ 13,903 $ 12,456 $ 14,172 $ 9,268 $ 9,803 $ 40,531 $ 35,461 Operating noninterest expense Noninterest expense $ 41,321 $ 41,717 $ 39,597 $ 47,373 $ 36,408 $ 122,635 $ 112,014 Less: FHLB prepayment fees - - - 9,746 - - 1,561 Operating noninterest expense $ 41,321 $ 41,717 $ 39,597 $ 37,627 $ 36,408 $ 122,635 $ 110,453 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020 Adjusted net interest margin Net interest income 71,276$ 67,131$ 65,635$ 66,766$ $ 65,870 Less: Loan accretion 1,904 1,536 1,911 2,652 3,953 Less: Deposit premium amortization 15 34 76 89 110 Adjusted net interest income $ 69,357 $ 65,561 $ 63,648 $ 64,025 $ 61,807 Total interest-earning assets 8,684,376$ 8,659,059$ 8,257,048$ 8,065,652$ $ 7,899,837 Adjusted net interest margin 3.16% 3.03% 3.12% 3.15% 3.10% For the Quarter Ended (Dollars in thousands, except per share data) For the Quarter Ended (Dollars in thousands, except per share data) For the Year Ended

Document

Exhibit 99.3

https://cdn.kscope.io/8d78a49319799e1e833461e9327893b2-veritexseclogoa14.jpg

PRESS RELEASE

FOR IMMEDIATE RELEASE

Veritex Holdings, Inc. Declares Cash Dividend on Common Stock

Dallas, TX – October 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 $0.20 per share on its outstanding common stock. The dividend will be paid on or after November 23, 2021 to shareholders of record as of the close of business on November 10, 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.

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.

Investor Relations:

972-349-6132

investorrelations@veritexbank.com