vbtx-20220727
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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): July 27, 2022


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 classTrading SymbolName of each exchange on which registered
Common Stock, par value $0.01 per shareVBTXNasdaq 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 July 27, 2022, 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 quarter ended June 30, 2022. 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, July 27, 2022, at 8:30 a.m., Central Time, the Company will host an investor conference call and webcast to review its second 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 July 27, 2022. 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 July 27, 2022, 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 August 26, 2022 to shareholders of record as of the close of business on August 12, 2022. The press release is attached hereto as Exhibit 99.3 and is incorporated herein by reference.
Forward Looking Statement

This Current Report on Form 8-K includes “forward-looking statements,” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on various facts and derived utilizing assumptions, current expectations, estimates and projections and are subject to known and unknown risks, uncertainties and other factors, which change over time and are beyond our control, that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements include, without limitation, statements relating to Veritex Holdings, Inc.’s (“Veritex”) proposed acquisition of interLINK, including the expected timing of the completion of the acquisition, the ability to complete the acquisition, the ability to obtain any required regulatory or other approvals, authorizations or consents in connection with the acquisition, disruption from the acquisition making it more difficult to maintain relationships with employees, customers or other parties with whom Veritex or interLINK have business relationships, diversion of management time on acquisition-related issues, the reaction to the acquisition of the companies’ customers, employees and counterparties, any statements regarding the plans and objectives of management for future operations, products or services arising from the acquisition, including integration plans, and the treatment of certain deposits via interLINK as not being brokered deposits for any supervisory purpose; the expected payment date of Veritex's quarterly cash dividend; the impact of certain changes in Veritex’s accounting policies, standards and interpretations; the effects of the COVID-19 pandemic and actions taken in response thereto; and Veritex’s future financial performance, business and growth strategy, projected plans and objectives, as well as other projections based on macroeconomic and industry trends, which are inherently unreliable due to the multiple factors that impact broader economic and industry trends, and any such variations may be material. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “seeks,” “targets,” “outlooks,” “plans” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing words. We refer you to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of Veritex’s Annual Report on Form 10-K for the year ended December 31, 2021 and any updates to those risk factors set forth in Veritex’s Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other



filings with the Securities and Exchange Commission (“SEC”), which are available on the SEC’s website at www.sec.gov. If one or more events related to these or other risks or uncertainties materialize, or if Veritex’s underlying assumptions prove to be incorrect, actual results may differ materially from what Veritex anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. Veritex does not undertake any obligation, and specifically declines any obligation, to supplement, update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by law. All forward-looking statements, expressed or implied, included in this Current Report on Form 8-K 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.

Item 9.01 Financial Statements and Exhibits
(d) Exhibits.
Exhibit Number Description
 
 
104Cover 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:
July 27, 2022
 


Document
Exhibit 99.1
VERITEX HOLDINGS, INC. REPORTS SECOND QUARTER OPERATING RESULTS

Dallas, TX — July 27, 2022 —Veritex Holdings, Inc. (“Veritex”, the “Company”, “we” or “our”) (Nasdaq: VBTX), the holding company for Veritex Community Bank, today announced the results for the quarter ended June 30, 2022.
“The second quarter of 2022 was another exceptional quarter for our Company, reporting 1.76% in PTPP operating return,” said President and CEO, C. Malcolm C. Holland, III. “We have remained and will remain focused on the positive momentum we have created by investing in talent and focus on scale in two of the strongest and most resilient markets in the U.S.”

Quarter to DateYear to Date
Financial HighlightsQ2 2022Q1 2022Q2 2022Q2 2021
(Dollars in thousands, except per share data)
(unaudited)
GAAP
Net income$29,626 $33,470 $63,096 $61,243 
Diluted EPS0.54 0.65 1.19 1.22 
Book value per common share26.50 26.86 26.50 25.72 
Return on average assets2
1.11 %1.36 %1.23 %1.35 %
Efficiency ratio50.76 52.84 51.76 51.01 
Return on average equity2
8.21 10.00 9.07 9.96 
Non-GAAP1
Operating earnings$29,855 $34,014 $63,869 $62,165 
Diluted operating EPS0.55 0.66 1.20 1.24 
Tangible book value per common share18.20 18.51 18.20 17.16 
Pre-tax, pre-provision operating earnings47,000 42,265 89,265 78,707 
Pre-tax, pre-provision operating return on average assets2
1.76 %1.71 %1.74 %1.74 %
Operating return on average assets2
1.12 1.38 1.24 1.37 
Operating efficiency ratio50.45 52.05 51.22 50.62 
Return on average tangible common equity2
12.68 15.84 14.17 16.15 
Operating return on average tangible common equity2
12.77 16.08 14.34 16.38 
1 Refer to the section titled “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of these non-generally accepted accounting principles (“”GAAP”) financial measures to their most directly comparable GAAP measures.
2 Annualized ratio.

Other Second Quarter Highlights

Pre-tax, pre-provision operating return on average assets increased 5 bps from the first quarter of 2022 to 1.76%;
Non-performing assets (“NPAs”) to total assets decreased to 0.40%, or 6 bps from March 31, 2022, and decreased to 0.40% or 45 bps from June 30, 2021, respectively;
Net charge-offs to average loans outstanding of 1 basis point for the second quarter of 2022;
Net interest margin increased to 3.42%, up 20 basis points from the first quarter of 2022;
Total loans held for investment (“LHI”), excluding mortgage warehouse (“MW”) and paycheck protection program (“PPP”) loans, grew $790.4 million, or 44.4% annualized, during the three months ended June 30, 2022 from $7.1 billion at the end of the first quarter of 2022;
Total deposits grew $628.1 million, or 31.8% annualized, during the three months ended June 30, 2022 from $7.9 billion at the end of the first quarter of 2022; and
Declared quarterly cash dividend of $0.20 per share of outstanding common stock payable on August 26, 2022.

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Results of Operations for the Three Months Ended June 30, 2022
Net Interest Income
For the three months ended June 30, 2022, net interest income before provision for credit losses was $84.5 million and net interest margin was 3.42% compared to $73.0 million and 3.22%, respectively, for the three months ended March 31, 2022. The $11.4 million increase in net interest income before provision for credit losses was primarily due to a $10.7 million increase in interest income on loans driven by an increase in average balances and loan yields during the three months ended June 30, 2022. Net interest margin increased 20 basis points compared to the three months ended March 31, 2022, primarily due to the increase in yields earned on loans during three months ended June 30, 2022.
Compared to the three months ended June 30, 2021, net interest income before provision for credit losses for the three months ended June 30, 2022 increased by $17.3 million, or 25.8%. The increase was primarily due to a $14.4 million increase in interest income on loans driven by an increase in average balances. The average cost of interest-bearing deposits increased 8 basis points to 0.43% for the three months ended June 30, 2022 from 0.35% for the three months ended June 30, 2021.

Noninterest Income
Noninterest income for the three months ended June 30, 2022 was $10.4 million, a decrease of $4.7 million, or 31.3%, compared to the three months ended March 31, 2022. The decrease was primarily due to a $4.1 million decrease in government guaranteed loan income, net.
Compared to the three months ended June 30, 2021, noninterest income for the three months ended June 30, 2022 decreased by $2.1 million, or 16.7%. The decrease was primarily due to a $2.7 million decrease in government guaranteed loan income, net.

Noninterest Expense
Noninterest expense was $48.2 million for the three months ended June 30, 2022, compared to $46.6 million for the three months ended March 31, 2022, an increase of $1.6 million, or 3.4%. This increase was primarily due to a $1.1 million increase in marketing expenses.
Compared to the three months ended June 30, 2021, noninterest expense for the three months ended June 30, 2022 increased by $6.4 million, or 15.4%. The increase was primarily driven by a $3.5 million increase in salaries and employee benefits as a result of a $3.3 million increase in salaries resulting from continued investment in talent.

Financial Condition
Total LHI, excluding MW and PPP loans, were $7.9 billion at June 30, 2022, an increase of $790.4 million, or 44.4% annualized, compared to March 31, 2022. The increase was the result of the continued execution, and success of our loan growth strategy, including our investment in talent.
Total deposits were $8.5 billion at June 30, 2022, an increase of $628.1 million, or 31.8% annualized, compared to March 31, 2022. The increase was primarily the result of an increase of $319.0 million in interest-bearing transaction and savings deposits, an increase of $181.9 million in noninterest-bearing demand deposits, and an increase of $127.2 million in certificates and other time deposits.

Asset Quality
Nonperforming assets totaled $45.0 million, or 0.40% of total assets at June 30, 2022, compared to $48.0 million, or 0.46% of total assets at March 31, 2022. The Company had net charge-offs of $909 thousand for the quarter, which were fully reserved against in prior quarters under our allowance for credit loss (“ACL”) model.
The Company recorded a provision for credit losses of $9.0 million for the three months ended June 30, 2022, a $500 thousand benefit for credit losses for the three months ended March 31, 2022 and no provision for credit losses for the three months ended June 30, 2021. The recorded provision for credit losses for the three months ended June 30, 2022, compared to the three
2


months ended March 31, 2022, was primarily attributable to an increase in general reserves as a result of loan growth. For the three months ended June 30, 2022, we recorded no provision for unfunded commitments, which was attributable to stable unfunded balances. ACL as a percentage of LHI, excluding MW and PPP loans, was 1.02%, 1.02% and 1.59% at June 30, 2022, March 31, 2022 and June 30, 2021, respectively.

Dividend Information

On July 27, 2022, Veritex’s Board of Directors declared a quarterly cash dividend of $0.20 per share on its outstanding shares of common stock. The dividend will be paid on or after August 26, 2022 to stockholders of record as of the close of business on August 12, 2022.

Non-GAAP Financial Measures
Veritex’s management uses certain non-GAAP (U.S. generally accepted accounting principles) financial measures to evaluate its operating performance and provide information that is important to investors. However, non-GAAP financial measures are supplemental and should be viewed in addition to, and not as an alternative for, Veritex’s reported results prepared in accordance with GAAP. Specifically, Veritex reviews and reports tangible book value per common share, operating earnings, tangible common equity to tangible assets, return on average tangible common equity, pre-tax, pre-provision operating earnings, pre-tax, pre-provision operating return on average assets, diluted operating earnings per share, operating return on average assets, operating return on average tangible common equity and operating efficiency ratio. Veritex has included in this earnings release information related to these non-GAAP financial measures for the applicable periods presented. Please refer to “Reconciliation of Non-GAAP Financial Measures” after the financial highlights at the end of this earnings release for a reconciliation of these non-GAAP financial measures.
Conference Call
The Company will host an investor conference call and webcast to review the results on Wednesday, July 27, 2022, at 8:30 a.m. Central Time. Participants may pre-register for the call by visiting https://edge.media-server.com/mmc/p/r7rx63qg and will receive a unique PIN, which can be used when dialing in for the call.

Participants may also register via teleconference at:
https://register.vevent.com/register/BI70101fb149e640b7a111c50ba9b1bef1. Once registration is completed, participants will be provided with a dial-in number containing a personalized conference code to access the call. All participants are instructed to dial-in 15 minutes prior to the start time.

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

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

Media and Investor Relations:
investorrelations@veritexbank.com
Forward-Looking Statements
This earnings release includes “forward-looking statements”, within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on various facts and derived utilizing assumptions, current expectations, estimates and projections and are subject to known and unknown risks, uncertainties and other factors, which change over time and are beyond our control, that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements include, without limitation, statements relating to Veritex Holdings, Inc.’s (“Veritex”) proposed acquisition of interLINK, including the expected timing of the completion of the acquisition,
3


the ability to complete the acquisition, the ability to obtain any required regulatory or other approvals, authorizations or consents in connection with the acquisition, disruption from the acquisition making it more difficult to maintain relationships with employees, customers or other parties with whom Veritex or interLINK have business relationships, diversion of management time on acquisition-related issues, the reaction to the acquisition of the companies’ customers, employees and counterparties, any statements regarding the plans and objectives of management for future operations, products or services arising from the acquisition, including integration plans, and the treatment of certain deposits via interLINK as not being brokered deposits for any supervisory purpose; the expected payment date of Veritex’s quarterly cash dividend; the impact of certain changes in Veritex’s accounting policies, standards and interpretations; the effects of the COVID-19 pandemic and actions taken in response thereto; and Veritex’s future financial performance, business and growth strategy, projected plans and objectives, as well as other projections based on macroeconomic and industry trends, which are inherently unreliable due to the multiple factors that impact broader economic and industry trends, and any such variations may be material. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “seeks,” “targets,” “outlooks,” “plans” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing words. We refer you to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of Veritex’s Annual Report on Form 10-K for the year ended December 31, 2021 and any updates to those risk factors set forth in Veritex’s Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings with the Securities and Exchange Commission (“SEC”), which are available on the SEC’s website at www.sec.gov. If one or more events related to these or other risks or uncertainties materialize, or if Veritex’s underlying assumptions prove to be incorrect, actual results may differ materially from what Veritex anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. Veritex does not undertake any obligation, and specifically declines any obligation, to supplement, update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by law. All forward-looking statements, expressed or implied, included in this earnings release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Veritex or persons acting on Veritex’s behalf may issue.
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VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Financial Highlights
(Unaudited)
 For the Quarter EndedFor the Six Months Ended
Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Jun 30, 2022Jun 30, 2021
(Dollars and shares in thousands)
Per Share Data (Common Stock):
Basic EPS$0.55 $0.66 $0.84 $0.75 $0.60 $1.21 $1.24 
Diluted EPS0.54 0.65 0.82 0.73 0.59 1.19 1.22 
Book value per common share26.50 26.86 26.64 26.09 25.72 26.50 25.72 
Tangible book value per common share1
18.20 18.51 17.49 17.53 17.16 18.20 17.16 
     Dividends paid per common share outstanding2
0.20 0.20 0.20 0.20 0.20 0.40 0.37 
Common Stock Data:
Shares outstanding at period end53,951 53,907 49,372 49,229 49,498 53,951 49,498 
Weighted average basic shares outstanding for the period53,949 50,695 49,329 49,423 49,476 52,331 49,435 
Weighted average diluted shares outstanding for the period54,646 51,571 50,441 50,306 50,331 53,121 50,187 
Summary of Credit Ratios:
ACL to total LHI, excluding MW and PPP loans1.02 %1.02 %1.15 %1.42 %1.59 %1.02 %1.59 %
NPAs to total assets0.40 0.46 0.51 0.77 0.85 0.40 0.85 
Net charge-offs to average loans outstanding0.01 0.07 0.19 0.09 0.09 0.08 0.09 
Summary Performance Ratios:   
Return on average assets3
1.11 1.36 1.68 1.56 1.27 1.23 1.35 
Return on average equity3
8.21 10.00 12.65 11.32 9.42 9.07 9.96 
Return on average tangible common equity1, 3
12.68 15.84 20.06 17.72 15.18 14.17 16.15 
Efficiency ratio50.76 52.84 48.53 47.55 52.42 51.76 51.01 
     Net interest margin
3.42 3.22 3.37 3.26 3.11 3.32 3.16 
Selected Performance Metrics - Operating:
Diluted operating EPS1
$0.55 $0.66 $0.84 $0.70 $0.60 $1.20 $1.24 
Pre-tax, pre-provision operating return on average assets1, 2
1.76 %1.71 %1.97 %1.85 %1.66 %1.74 %1.74 %
Operating return on average assets1, 3
1.12 1.38 1.72 1.48 1.29 1.24 1.37 
Operating return on average tangible common equity1, 3
12.77 16.08 20.48 16.92 15.42 14.34 16.38 
Operating efficiency ratio1
50.45 52.05 47.64 48.51 51.63 51.22 50.62 
Veritex Holdings, Inc. Capital Ratios:   
Average stockholders' equity to average total assets13.51 %13.58 %13.30 %13.75 %13.46 %13.54 %13.57 %
Tangible common equity to tangible assets1
9.04 9.98 9.28 9.43 9.51 9.04 9.51 
Tier 1 capital to average assets (leverage)10.14 10.66 9.05 9.54 9.38 10.14 9.38 
Common equity tier 1 capital9.25 9.84 8.58 8.75 9.03 9.25 9.03 
Tier 1 capital to risk-weighted assets9.52 10.14 8.89 9.06 9.36 9.52 9.36 
Total capital to risk-weighted assets11.95 12.73 11.60 12.31 12.86 11.95 12.86 

1Refer to the section titled “Reconciliation of Non-GAAP Financial Measures” after the financial highlights for a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures.
2Dividend amount represents dividend paid per common share subsequent to each respective quarter end.
3Annualized ratio for quarterly metrics.


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VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Financial Highlights
(In thousands)
 
Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021
(unaudited)(unaudited)(unaudited)(unaudited)
ASSETS    
Cash and cash equivalents$410,716 $551,573 $379,784 $229,712 $390,027 
Debt Securities1,354,4031,244,5141,052,4941,103,7451,125,877
Other investments202,685 188,699 190,591 191,786 87,558 
Loans held for sale14,210 18,721 26,007 18,896 12,065 
LHI, PPP loans, carried at fair value7,339 18,512 53,369 135,842 291,401 
LHI, MW629,291 542,877 565,645 615,045 559,939 
LHI, excluding MW and PPP7,915,792 7,125,429 6,766,009 6,615,905 6,272,087 
Total loans8,566,632 7,705,539 7,411,030 7,385,688 7,135,492 
ACL(80,576)(72,485)(77,754)(93,771)(99,543)
Bank-owned life insurance84,097 83,641 83,194 83,781 83,304 
Bank premises, furniture and equipment, net108,769 109,138 109,271 116,063 123,504 
Other real estate owned (“OREO”)1,032 1,062 — — 2,467 
Intangible assets, net of accumulated amortization59,011 63,986 66,017 54,682 57,143 
Goodwill404,452 404,452 403,771 370,840 370,840 
Other assets193,590 173,561 138,851 129,774 72,856 
Total assets$11,304,811 $10,453,680 $9,757,249 $9,572,300 $9,349,525 
LIABILITIES AND STOCKHOLDERS’ EQUITY     
Deposits:     
Noninterest-bearing deposits$2,947,830 $2,765,895 $2,510,723 $2,302,925 $2,388,068 
Interest-bearing transaction and savings deposits4,007,250 3,688,292 3,276,312 3,228,306 3,112,974 
Certificates and other time deposits1,562,626 1,435,409 1,576,580 1,647,521 1,477,860 
Total deposits8,517,706 7,889,596 7,363,615 7,178,752 6,978,902 
Accounts payable and other liabilities126,116 105,552 69,160 66,571 55,499 
Advances from Federal Home Loan Bank (“FHLB”)1,000,000 777,522 777,562 777,601 777,640 
Subordinated debentures and subordinated notes228,272 228,018 227,764 262,761 262,766 
Securities sold under agreements to repurchase3,275 4,996 4,069 2,455 1,811 
Total liabilities9,875,369 9,005,684 8,442,170 8,288,140 8,076,618 
Commitments and contingencies    
Stockholders’ equity:     
Common stock606 605 560 559 558 
Additional paid-in capital1,300,170 1,297,161 1,142,758 1,137,889 1,134,603 
Retained earnings317,664 298,830 275,273 243,633 216,704 
Accumulated other comprehensive (loss) income(21,416)18,982 64,070 69,661 77,189 
Treasury stock
(167,582)(167,582)(167,582)(167,582)(156,147)
Total stockholders’ equity1,429,442 1,447,996 1,315,079 1,284,160 1,272,907 
Total liabilities and stockholders’ equity$11,304,811 $10,453,680 $9,757,249 $9,572,300 $9,349,525 
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VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Financial Highlights
(In thousands, except per share data)
 For the Quarter EndedFor the Six Months Ended
Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Jun 30, 2022Jun 30, 2021
Interest income:     
Loans, including fees$82,191 $71,443 $74,174 $71,139 $67,814 $153,634 $135,213 
Debt securities9,632 7,762 9,553 7,613 7,529 17,394 14,966 
Deposits in financial institutions and Fed Funds sold714 262 165 130 167 976 294 
Equity securities and other investments1,057 910 1,004 898 672 1,967 1,335 
Total interest income93,594 80,377 84,896 79,780 76,182 173,971 151,808 
Interest expense:   
Transaction and savings deposits4,094 1,751 1,629 1,588 1,661 5,845 3,641 
Certificates and other time deposits1,465 1,380 1,661 1,934 2,423 2,845 5,484 
Advances from FHLB834 1,547 1,847 1,848 1,829 2,381 3,641 
Subordinated debentures and subordinated notes2,721 2,659 3,018 3,134 3,138 5,380 6,276 
Total interest expense9,114 7,337 8,155 8,504 9,051 16,451 19,042 
Net interest income84,480 73,040 76,741 71,276 67,131 157,520 132,766 
Provision (benefit) for credit losses9,000 (500)(3,349)— — 8,500 — 
Provision (benefit) for unfunded commitments— 493 (1,040)(448)577 493 
Net interest income after provisions75,480 73,047 81,130 71,724 66,554 148,527 132,759 
Noninterest income:   
Service charges and fees on deposit accounts5,039 4,710 4,782 4,484 3,847 9,749 7,476 
Loan fees2,385 2,794 2,697 1,746 1,823 5,179 3,164 
Loss on sales of investment securities— — — (188)— — — 
Gain on sales of mortgage loans held for sale223 307 293 407 385 530 892 
Government guaranteed loan income, net789 4,891 3,423 2,341 3,448 5,680 9,996 
Equity method investment income966 367 1,238 4,522 — 1,333 — 
Other976 2,028 3,717 2,315 2,953 3,004 5,100 
Total noninterest income10,378 15,097 16,150 15,627 12,456 25,475 26,628 
Noninterest expense:   
Salaries and employee benefits26,924 27,513 25,401 22,964 23,451 54,437 46,383 
Occupancy and equipment4,496 4,517 4,398 4,536 4,233 9,013 8,329 
Professional and regulatory fees2,865 3,158 3,017 3,401 3,086 6,023 6,527 
Data processing and software expense3,386 2,921 2,597 2,494 2,536 6,307 4,855 
Marketing2,306 1,187 1,443 1,151 1,841 3,493 2,750 
Amortization of intangibles2,495 2,495 2,494 2,509 2,517 4,990 5,054 
Telephone and communications352 385 380 380 337 737 674 
Merger and acquisition (“M&A”) expense295 700 826 — — 995 — 
Other5,034 3,696 4,521 3,886 3,716 8,730 6,742 
Total noninterest expense48,153 46,572 45,077 41,321 41,717 94,725 81,314 
Income before income tax expense37,705 41,572 52,203 46,030 37,293 79,277 78,073 
Income tax expense8,079 8,102 10,697 9,195 7,837 16,181 16,830 
Net income$29,626 $33,470 $41,506 $36,835 $29,456 $63,096 $61,243 
Net income available to common stockholders$29,626 $33,470 $41,506 $36,835 $29,456 $63,096 $61,243 
Basic EPS$0.55 $0.66 $0.84 $0.75 $0.60 $1.21 $1.24 
Diluted EPS$0.54 $0.65 $0.82 $0.73 $0.59 $1.19 $1.22 
Weighted average basic shares outstanding53,949 50,695 49,329 49,423 49,476 52,331 49,435 
Weighted average diluted shares outstanding54,646 51,571 50,441 50,306 50,331 53,121 50,187 

7


VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Financial Highlights
(Unaudited)
 
 For the Quarter Ended
 June 30, 2022March 31, 2022June 30, 2021
Average
Outstanding
Balance
Interest
Earned/
Interest
Paid
Average
Yield/
Rate
Average
Outstanding
Balance
Interest
Earned/
Interest
Paid
Average
Yield/
Rate
Average
Outstanding
Balance
Interest
Earned/
Interest
Paid
Average
Yield/
Rate
(In thousands, expect percentages)
Assets         
Interest-earning assets:         
Loans1
$7,547,564 $78,234 4.16 %$6,872,943 $68,297 4.03 %$6,108,527 $63,427 4.16 %
LHI, MW479,187 3,929 3.29 421,680 3,069 2.95 455,334 3,476 3.06 
PPP loans11,402 28 1.00 31,335 77 1.00 364,020 911 1.00 
Debt securities1,318,502 9,632 2.93 1,140,834 7,762 2.76 1,095,678 7,529 2.76 
Interest-bearing deposits in other banks369,847 714 0.77 554,864 262 0.19 548,087 167 0.12 
Equity securities and other investments167,327 1,057 2.53 190,002 910 1.94 87,413 672 3.08 
Total interest-earning assets9,893,829 93,594 3.79 9,211,658 80,377 3.54 8,659,059 76,182 3.53 
ACL(74,268)(77,843)(105,050)
Noninterest-earning assets892,102 865,107 767,270 
Total assets$10,711,663 $9,998,922 $9,321,279 
Liabilities and Stockholders’ Equity         
Interest-bearing liabilities:         
Interest-bearing demand and savings deposits$3,770,098 $4,094 0.44 %$3,471,645 $1,751 0.20 %$3,191,405 $1,661 0.21 %
Certificates and other time deposits1,459,690 1,465 0.40 1,501,852 1,380 0.37 1,515,092 2,423 0.64 
Advances from FHLB828,769 834 0.40 777,538 1,547 0.81 777,655 1,829 0.94 
Subordinated debentures and subordinated notes232,043 2,721 4.70 231,875 2,659 4.65 264,931 3,138 4.75 
Total interest-bearing liabilities6,290,600 9,114 0.58 5,982,910 7,337 0.50 5,749,083 9,051 0.63 
Noninterest-bearing liabilities:         
Noninterest-bearing deposits2,870,692   2,591,504   2,266,470   
Other liabilities102,994   67,060   51,355   
Total liabilities9,264,286   8,641,474   8,066,908   
Stockholders’ equity1,447,377   1,357,448   1,254,371   
Total liabilities and stockholders’ equity$10,711,663   $9,998,922   $9,321,279   
Net interest rate spread2
  3.21 %  3.04 %  2.90 %
Net interest income and margin3
 84,480 3.42 % 73,040 3.22 % 67,131 3.11 %

1 Includes average outstanding balances of loans held for sale of $12,112, $12,769 and $14,364 for the three months ended June 30, 2022, March 31, 2022, and June 30, 2021, respectively, and average balances of LHI, excluding MW and PPP loans.
2 Net interest rate spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.
3 Net interest margin is equal to net interest income divided by average interest-earning assets.










8


VERITEX HOLDINGS, INC. AND SUBSIDIARY
Financial Highlights
(In thousands except percentages)
Six Months Ended
June 30, 2022June 30, 2021
Average Outstanding BalanceInterest Earned/ Interest PaidAverage Yield/ RateAverage Outstanding BalanceInterest Earned/ Interest PaidAverage Yield/ Rate
Assets
Interest-earning assets:
Loans1
$7,205,954 $146,500 4.10 %$6,003,754 $126,128 4.24 %
LHI, WH450,5926,9983.13 482,8537,2923.05 
PPP loans27,4771361.00 360,2091,7931.00 
Debt securities1,230,15917,3942.85 1,079,69714,9662.80 
Interest-bearing deposits in other banks461,8449760.43 445,3562940.13 
Equity securities and other investments178,6021,9672.22 87,2961,3353.08 
Total interest-earning assets9,554,628173,9713.67 8,459,165151,8083.62 
ACL(76,046)(105,509)
Noninterest-earning assets878,679778,691
Total assets$10,357,261 $9,132,347 
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand and savings deposits$3,621,697 $5,845 0.33 %$3,115,417 $3,641 0.24 %
Certificates and other time deposits1,480,6542,845 0.39 1,512,4795,4840.73 
Advances from FHLB803,2952,381 0.60 777,6753,6410.94 
Subordinated debentures and subordinated notes231,9595,380 4.68 265,1426,2764.77 
Total interest-bearing liabilities6,137,60516,4510.54 5,670,71319,0420.68 
Noninterest-bearing liabilities:
Noninterest-bearing deposits2,731,8692,168,396
Other liabilities85,12653,823
Total liabilities8,954,6007,892,932
Stockholders’ equity1,402,6611,239,415
Total liabilities and stockholders’ equity$10,357,261 $9,132,347 
Net interest rate spread2
3.13 %2.94 %
Net interest income and margin3
$157,520 3.32 %$132,766 3.16 %
1 Includes average outstanding balances of loans held for sale of $12,440 and $15,476 for the six months ended June 30, 2022 and June 30, 2021, respectively, and average balances of LHI, excluding MW and PPP loans.
2 Net interest rate spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.
3 Net interest margin is equal to net interest income divided by average interest-earning assets.
9


VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Financial Highlights

Yield Trend
 For the Quarter Ended
Jun 30,
2022
Mar 31,
2022
Dec 31,
2021
Sep 30,
2021
Jun 30,
2021
Average yield on interest-earning assets:   
Loans1
4.16 %4.03 %4.12 %4.16 %4.16 %
LHI, MW3.29 2.95 2.98 3.15 3.06 
PPP loans1.00 1.00 1.00 1.00 1.00 
Debt securities2.93 2.76 3.47 2.70 2.76 
Interest-bearing deposits in other banks0.77 0.19 0.16 0.15 0.12 
Equity securities and other investments2.53 1.94 2.09 2.13 3.08 
Total interest-earning assets3.79 %3.54 %3.72 %3.64 %3.53 %
Average rate on interest-bearing liabilities:
Interest-bearing demand and savings deposits0.44 %0.20 %0.19 %0.20 %0.21 %
Certificates and other time deposits0.40 0.37 0.41 0.50 0.64 
Advances from FHLB0.40 0.81 0.94 0.94 0.94 
Subordinated debentures and subordinated notes4.70 4.65 4.62 4.70 4.75 
Total interest-bearing liabilities0.58 %0.50 %0.54 %0.59 %0.63 %
Net interest rate spread2
3.21 %3.04 %3.18 %3.05 %2.90 %
Net interest margin3
3.42 %3.22 %3.37 %3.26 %3.11 %
1Includes average outstanding balances of loans held for sale of $12,112, $12,769, $8,987, $8,542 and $14,364 for the three months ended June 30, 2022,      March 31, 2022, December 31, 2021, September 30, 2021 and June 30, 2021, respectively, and average balances of LHI, excluding MW and PPP loans.
2 Net interest rate spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.
3 Net interest margin is equal to net interest income divided by average interest-earning assets.

Supplemental Yield Trend
 For the Quarter Ended
Jun 30,
2022
Mar 31,
2022
Dec 31,
2021
Sep 30,
2021
Jun 30,
2021
Average cost of interest-bearing deposits0.43 %0.26 %0.26 %0.30 %0.35 %
Average costs of total deposits, including noninterest-bearing0.28 0.17 0.18 0.20 0.23 

10


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

LHI and Deposit Portfolio Composition
Jun 30,
2022
Mar 31,
2022
Dec 31,
2021
Sep 30,
2021
Jun 30,
2021
(In thousands, expect percentages)
LHI1
Commercial$2,450,40330.9 %$2,125,90029.8 %$2,006,87629.6 %$1,793,74027.1 %$1,771,10028.2 %
Real Estate:
Owner occupied commercial (“OOCRE”)646,7238.2 633,6158.9 665,5379.8 711,47610.7 744,89911.9 
Non-owner occupied commercial (“NOOCRE”)2,203,97027.8 2,145,82630.0 2,120,30931.3 2,194,43833.1 1,986,53831.6 
Construction and land1,532,99719.3 1,297,33818.2 1,062,14415.7 936,17414.1 871,76513.9 
Farmland47,3190.6 48,0950.7 55,8270.8 73,5501.1 13,6610.2 
1-4 family residential 765,2609.6 604,4088.5 542,5668.0 543,5188.2 513,6358.2 
Multi-family residential276,6323.5 272,2503.8 310,2414.6 356,8855.4 367,4455.9 
Consumer7,5200.1 9,5330.1 11,9980.2 14,2660.3 10,5300.1 
Total LHI$7,930,824100 %$7,136,965100 %$6,775,498100 %$6,624,047100 %$6,279,573100 %
MW629,291542,877565,645615,045559,939
PPP loans7,33918,51253,369135,842291,401
Total LHI1
$8,567,454$7,698,354$7,394,512$7,374,934$7,130,913
Deposits
Noninterest-bearing$2,947,83034.6 %$2,765,89535.1 %$2,510,72334.1 %$2,302,92532.1 %$2,388,06834.1 %
Interest-bearing transaction660,5577.8 599,5807.6 579,4087.9 514,5377.2 451,3076.5 
Money market3,217,19537.8 2,958,79037.5 2,568,84334.9 2,585,92636.0 2,539,06136.4 
Savings129,4981.5 129,9221.6 128,0611.7 127,8431.8 122,6061.8 
Certificates and other time deposits1,562,62618.3 1,435,40918.2 1,576,58021.4 1,647,52122.9 1,477,86021.2 
Total deposits$8,517,706100 %$7,889,596100 %$7,363,615100 %$7,178,752100 %$6,978,902100 %
Loan to Deposit Ratio100.6 %97.6 %100.4 %102.7 %102.2 %
Loan to Deposit Ratio, excluding MW and PPP loans93.1 %90.5 %92.0 %92.3 %90.0 %

1 Total LHI does not include deferred fees of $15.0 million, $11.5 million, $9.5 million, $8.1 million and $7.5 million at June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021 and June 30, 2021, respectively.

11


VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Financial Highlights
(Unaudited)
Asset Quality
 For the Quarter EndedFor the Six Months Ended
Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Jun 30, 2022Jun 30, 2021
(In thousands)
NPAs:    
Nonaccrual loans$42,242$46,680$49,687$72,317$76,994$42,242$76,994
Accruing loans 90 or more days past due1
1,7532644411,7114621,753462
Total nonperforming loans held for investment (“NPLs”)43,99546,94450,12874,02877,45643,99577,456
OREO1,0321,0622,4671,0322,467
Total NPAs$45,027$48,006$50,128$74,028$79,923$45,027$79,923
Charge-offs:
1-4 family residential$$$$(64)$(300)$$(315)
OOCRE(244)(1,341)(898)(813)(689)(1,585)(689)
NOOCRE(553)(7,936)(553)
Commercial(528)(3,294)(4,114)(5,508)(5,608)(3,822)(5,954)
Consumer(1,091)(134)(44)(17)(20)(1,225)(38)
Total charge-offs(1,863)(5,322)(12,992)(6,402)(6,617)(7,185)(6,996)
Recoveries:
1-4 family residential362629332
OOCRE245500245500
NOOCRE93400493
Commercial57214461596659716885
Consumer4192578365038
Total recoveries9545533246301,2241,5071,455
Net charge-offs$(909)$(4,769)$(12,668)$(5,772)$(5,393)$(5,678)$(5,541)
ACL$80,576$72,485$77,754$93,771$99,543$80,576$99,543
Asset Quality Ratios:
NPAs to total assets0.40 %0.46 %0.51 %0.77 %0.85 %0.40 %0.85 %
NPLs to total LHI, excluding MW and PPP loans0.55 0.66 0.74 1.12 1.23 0.55 1.23 
ACL to total LHI, excluding MW and PPP loans1.02 1.02 1.15 1.42 1.59 1.02 1.59 
Net charge-offs to average loans outstanding0.01 0.07 0.19 0.09 0.09 0.08 0.09 
1 Accruing loans greater than 90 days past due exclude purchase credit deteriorated loans greater than 90 days past due that are accounted for on a pooled basis.




12


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

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

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

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

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

The following table reconciles, as of the dates set forth below, total stockholders’ equity to tangible common equity and presents our tangible book value per common share compared with our book value per common share:
 As of
Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021
(Dollars in thousands, except per share data)
Tangible Common Equity   
Total stockholders' equity$1,429,442 $1,447,996 $1,315,079 $1,284,160 $1,272,907 
Adjustments:
Goodwill(404,452)(404,452)(403,771)(370,840)(370,840)
Core deposit intangibles(43,122)(45,560)(47,998)(50,436)(52,873)
Tangible common equity$981,868 $997,984 $863,310 $862,884 $849,194 
Common shares outstanding53,951 53,907 49,372 49,229 49,498 
Book value per common share$26.50 $26.86 $26.64 $26.09 $25.72 
Tangible book value per common share$18.20 $18.51 $17.49 $17.53 $17.16 





13


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

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

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

The following table reconciles, as of the dates set forth below, total stockholders’ equity to tangible common equity and total assets to tangible assets and presents our tangible common equity to tangible assets:
 As of
Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021
(Dollars in thousands)
Tangible Common Equity   
Total stockholders' equity$1,429,442 $1,447,996 $1,315,079 $1,284,160 $1,272,907 
Adjustments:
Goodwill(404,452)(404,452)(403,771)(370,840)(370,840)
Core deposit intangibles(43,122)(45,560)(47,998)(50,436)(52,873)
Tangible common equity$981,868 $997,984 $863,310 $862,884 $849,194 
Tangible Assets
Total assets$11,304,811 $10,453,680 $9,757,249 $9,572,300 $9,349,525 
Adjustments:
Goodwill(404,452)(404,452)(403,771)(370,840)(370,840)
Core deposit intangibles(43,122)(45,560)(47,998)(50,436)(52,873)
Tangible Assets$10,857,237 $10,003,668 $9,305,480 $9,151,024 $8,925,812 
Tangible Common Equity to Tangible Assets9.04 %9.98 %9.28 %9.43 %9.51 %


14


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

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

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

The following table reconciles, as of the dates set forth below, average tangible common equity to average common equity and net income available for common stockholders adjusted for amortization of core deposit intangibles, net of taxes to net income and presents our return on average tangible common equity:
 For the Quarter EndedFor the Six Months Ended
June 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021June 30, 2022June 30, 2021
(Dollars in thousands)
Net income available for common stockholders adjusted for amortization of core deposit intangibles
Net income$29,626 $33,470 $41,506 $36,835 $29,456 $63,096 $61,243 
Adjustments:
Plus: Amortization of core deposit intangibles2,438 2,438 2,438 2,438 2,438 4,876 4,885 
Less: Tax benefit at the statutory rate512 512 512 512 512 1,024 1,026 
Net income available for common stockholders adjusted for amortization of core deposit intangibles$31,552 $35,396 $43,432 $38,761 $31,382 $66,948 $65,102 
       
Average Tangible Common Equity
Total average stockholders' equity$1,447,377 $1,357,448 $1,301,676 $1,290,528 $1,254,371 $1,402,661 $1,239,415 
Adjustments:
Average goodwill(404,452)(404,014)(393,220)(370,840)(370,840)(404,234)(370,840)
Average core deposit intangibles(44,720)(47,158)(49,596)(52,043)(54,471)(45,932)(55,685)
Average tangible common equity$998,205 $906,276 $858,860 $867,645 $829,060 $952,495 $812,890 
Return on Average Tangible Common Equity (Annualized)12.68 %15.84 %20.06 %17.72 %15.18 %14.17 %16.15 %

15


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

Operating Earnings, Pre-tax, Pre-provision Operating Earnings and performance metrics calculated using Operating Earnings and Pre-tax, Pre-provision Operating Earnings, including Diluted Operating Earnings per Share, Operating Return on Average Assets, Pre-tax, Pre-Provision Operating Return on Average Assets, Operating Return on Average Tangible Common Equity and Operating Efficiency Ratio. Operating earnings, pre-tax, pre-provision operating earnings and the performance metrics calculated using these metrics, listed below, are non-GAAP measures used by management to evaluate the Company’s financial performance. We calculate (a) operating earnings as net income plus severance payments, plus loss on sale of debt securities AFS, net, less Thrive PPP loan forgiveness income, plus M&A expenses, less tax impact of adjustments, plus nonrecurring tax adjustments. We calculate (b) diluted operating earnings per share as operating earnings as described in clause (a) divided by weighted average diluted shares outstanding. We calculate (c) pre-tax, pre-provision operating earnings as operating earnings as described in clause (a) plus provision for income taxes, plus provision (benefit) for credit losses and unfunded commitments. We calculate (d) pre-tax, pre-provision operating return on average assets as pre-tax, pre-provision operating earnings as described in clause (a) divided by total average assets. We calculate (e) operating return on average assets as operating earnings as described in clause (a) divided by total average assets. We calculate (f) operating return on average tangible common equity as operating earnings as described in clause (a), adjusted for the amortization of intangibles and tax benefit at the statutory rate, divided by total average tangible common equity (average stockholders’ equity less average goodwill and average core deposit intangibles, net of accumulated amortization). We calculate (g) operating efficiency ratio as non interest expense plus adjustments to operating non interest expense divided by non interest income plus adjustments to operating non interest income, plus net interest income.

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

The following tables reconcile, as of the dates set forth below, operating net income and pre-tax, pre-provision operating earnings and related metrics:
 For the Quarter EndedFor the Six Months Ended
June 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021June 30, 2022June 30, 2021
(Dollars in thousands)
Operating Earnings
Net income$29,626 $33,470 $41,506 $36,835 $29,456 $63,096 $61,243 
Plus: Severance payments1
— — — — 627 — 627 
Plus: Loss on sale of debt securities AFS, net— — — 188 — — — 
Less: Thrive PPP loan forgiveness income2
— — — 1,912 — — — 
Plus: M&A expenses295 700 826 — — 995 — 
Operating pre-tax income
29,921 34,170 42,332 35,111 30,083 64,091 61,870 
Less: Tax impact of adjustments66 156 (78)39 131 222 131 
Plus: Nonrecurring tax adjustments3
— — — — — — 426 
Operating earnings$29,855 $34,014 $42,410 $35,072 $29,952 $63,869 $62,165 
Weighted average diluted shares outstanding54,646 51,571 50,441 50,306 50,331 53,121 50,187 
Diluted EPS$0.54 $0.65 $0.82 $0.73 $0.59 $1.19 $1.22 
Diluted operating EPS$0.55 $0.66 $0.84 $0.70 $0.60 1.20 1.24 
1 Severance payments relate to branch restructurings made during the three months ended June 30, 2021.
2 During the third quarter of 2021, Thrive’s PPP loan with another bank was 100% forgiven by the Small Business Administration. As a result of our 49% investment in Thrive, the $1.9 million represents our portion of the PPP loan forgiveness. PPP fee income is not taxable and as such has no tax impact.
3 A nonrecurring tax adjustment of $426 thousand recorded in the first quarter of 2021 was due to a true-up of a deferred tax liability.

16


 For the Quarter EndedFor the Six Months Ended
June 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021June 30, 2022June 30, 2021
(Dollars in thousands)
Pre-Tax, Pre-Provision Operating Earnings
Net income$29,626 $33,470 $41,506 $36,835 $29,456 $63,096 $61,243 
Plus: Provision for income taxes8,079 8,102 10,697 9,195 7,837 16,181 16,830 
Plus: Provision (benefit) for credit losses and unfunded commitments9,000 (7)(4,389)(448)577 8,993 
Plus: Severance payments— — — — 627 — 627 
Plus: Loss on sale of AFS securities, net— — — 188 — — — 
Less: Thrive PPP loan forgiveness income— — — 1,912 — — 
Plus: M&A expenses295 700 826 — — 995 — 
Pre-tax, pre-provision operating earnings$47,000 $42,265 $48,640 $43,858 $38,497 $89,265 $78,707 
Average total assets$10,711,663 $9,998,922 $9,788,671 $9,385,470 $9,321,279 $10,357,261 $9,132,347 
Pre-tax, pre-provision operating return on average assets1
1.76 %1.71 %1.97 %1.85 %1.66 %1.74 %1.74 %
Average total assets$10,711,663 $9,998,922 $9,788,671 $9,385,470 $9,321,279 $10,357,261 $9,132,347 
Return on average assets1
1.11 %1.36 %1.68 %1.56 %1.27 %1.23 %1.35 %
Operating return on average assets1
1.12 1.38 1.72 1.48 1.29 1.24 1.37 
Operating earnings adjusted for amortization of core deposit intangibles
Operating earnings$29,855 $34,014 $42,410 $35,072 $29,952 $63,869 $62,165 
Adjustments:
Plus: Amortization of core deposit intangibles2,438 2,438 2,438 2,438 2,438 4,876 4,885 
Less: Tax benefit at the statutory rate512 512 512 512 512 1,024 1,026 
Operating earnings adjusted for amortization of core deposit intangibles$31,781 $35,940 $44,336 $36,998 $31,878 $67,721 $66,024 
Average Tangible Common Equity
Total average stockholders' equity$1,447,377 $1,357,448 $1,301,676 $1,290,528 $1,254,371 $1,402,661 $1,239,415 
Adjustments:
Less: Average goodwill(404,452)(404,014)(393,220)(370,840)(370,840)(404,234)(370,840)
Less: Average core deposit intangibles(44,720)(47,158)(49,596)(52,043)(54,471)(45,932)(55,685)
Average tangible common equity$998,205 $906,276 $858,860 $867,645 $829,060 $952,495 $812,890 
Operating return on average tangible common equity1
12.77 %16.08 %20.48 %16.92 %15.42 %14.34 %16.38 %
Efficiency ratio50.76 %52.84 %48.53 %47.55 %52.42 %51.76 %51.01 %
Net interest income$84,480 $73,040 $76,741 $71,276 $67,131 $157,520 $132,766 
Noninterest income10,378 15,097 16,150 15,627 12,456 25,475 26,628 
Plus: Loss on sale of AFS securities, net— — — 188 — — — 
Less: Thrive PPP loan forgiveness income— — — 1,912 — — — 
Operating noninterest income10,378 15,097 16,150 13,903 12,456 25,475 26,628 
Noninterest expense48,153 46,572 45,077 41,321 41,717 94,725 81,314 
Less: Severance payments— — — — 627 — 627 
Less: M&A expenses295 700 826 — — 995 — 
Operating noninterest expense$47,858 $45,872 $44,251 $41,321 $41,090 $93,730 $80,687 
Operating efficiency ratio50.45 %52.05 %47.64 %48.51 %51.63 %51.22 %50.62 %
1 Annualized ratio for quarterly metrics.
.


17
a2q22investordeckex
7/26/2022 17/26/2022 1 TRUTH | INTEGRITY | TRANSPARENCY Second Quarter Exhibit 99.2


 
2 Safe Harbor and Non-GAAP Measures Forward-looking statements This presentation includes “forward-looking statements,” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on various facts and derived utilizing assumptions, current expectations, estimates and projections and are subject to known and unknown risks, uncertainties and other factors, which change over time and are beyond our control, that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements include, without limitation, statements relating to Veritex Holdings, Inc.’s (“Veritex”) proposed acquisition of interLINK, including the expected timing of the completion of the acquisition, the ability to complete the acquisition, the ability to obtain any required regulatory or other approvals, authorizations or consents in connection with the acquisition, disruption from the acquisition making it more difficult to maintain relationships with employees, customers or other parties with whom Veritex or interLINK have business relationships, diversion of management time on acquisition-related issues, the reaction to the acquisition of the companies’ customers, employees and counterparties, any statements regarding the plans and objectives of management for future operations, products or services arising from the acquisition, including integration plans, and the treatment of certain deposits via interLINK as not being brokered deposits for any supervisory purpose; the impact of certain changes in Veritex’s accounting policies, standards and interpretations; the effects of the COVID-19 pandemic and actions taken in response thereto; and Veritex’s future financial performance, business and growth strategy, projected plans and objectives, as well as other projections based on macroeconomic and industry trends, which are inherently unreliable due to the multiple factors that impact broader economic and industry trends, and any such variations may be material. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “seeks,” “targets,” “outlooks,” “plans” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing words. We refer you to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of Veritex’s Annual Report on Form 10-K for the year ended December 31, 2022 and any updates to those risk factors set forth in Veritex’s Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings with the Securities and Exchange Commission (“SEC”), which are available on the SEC’s website at www.sec.gov. If one or more events related to these or other risks or uncertainties materialize, or if Veritex’s underlying assumptions prove to be incorrect, actual results may differ materially from what Veritex anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. Veritex does not undertake any obligation, and specifically declines any obligation, to supplement, update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by law. All forward-looking statements, expressed or implied, included in this 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 Veritex management's knowledge of the industry, markets 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, forecasts and information included in this presentation, such data forecasts, and information and Veritex's estimates based thereon involve risks, assumptions and uncertainties and are subject to change based on various factors. Veritex does not undertake any obligation, and specifically declines any obligation, to supplement, update or revise such data forecasts, and information and Veritex's estimates based thereon, whether as a result of new information, future developments or otherwise, except as required by law. Non-GAAP Financial Measures This presentation contains certain non-GAAP (generally accepted accounting principles) financial measures, including 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 shares (“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”). Veritex’s management uses these non-GAAP financial measures to evaluate its operating performance and provide information that is important to investors. The non-GAAP financial measures that Veritex discusses in this presentation should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. 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.


 
3                Truth in Texas Banking Dallas / Ft. Worth Houston (33) Branches $11.3 Billion in assets $8.6 Billion in loans $8.5 Billion in deposits $1.6 Billion market cap Financial metrics as of June 30, 2022; market cap as of July 26, 2022. Veritex Holdings, Inc. Franchise Overview


 
4 Strong, Resilient Texas Market Our platform is powered by the Texas markets we serve Source: Bureau of Labor Statistics; Dallas Chamber of Commerce; Greater Houston Partnership; YTexas; Houston.org; S&P Global Market Intelligence


 
5 Second Quarter 2022 Highlights Financial Highlights ($M) Q2 2022 Q1 2022 Q2 2021 Net Interest Income $84.5 $73.0 $67.1 Non-Interest Revenue 10.4 15.1 12.5 Total Revenue 94.9 88.1 79.6 Non-Interest Expense 48.2 46.5 41.7 PTPP 46.7 41.6 37.9 Provision for Credit Losses 9.0 - 0.6 Income Tax Expense 8.1 8.1 7.8 Net Income 29.6 33.5 29.5 Key Performance Metrics Diluted EPS / Operating ($) 0.54 / 0.55 0.65 / 0.66 0.59 / 0.60 BVPS / TBVPS ($) 26.49 / 18.20 26.86 / 18.51 25.72 / 17.16 ROAA / Operating (%) 1.11 / 1.12 1.36 / 1.38 1.27 / 1.29 Efficiency Ratio / Operating (%) 50.76 / 50.45 52.84 / 52.05 52.42 / 51.63 ROATCE / Operating ROATCE (%) 12.68 / 12.77 15.84 / 16.08 15.18 /15.42 Growth Momentum ◊ Total loans held for investment (“LHI”), excluding mortgage warehouse (“MW”) and Paycheck Protection Program (“PPP”) loans, increased $790.4 million, or 44.4% annualized ◊ Total deposits grew $628.1 million, or 31.8% annualized Strong Balance Sheet ◊ Total capital of $1.3 billion; up $36 million in 2Q22 ◊ Non-performing assets (“NPAs”) to total assets decreased to 0.40%, or 6 bps, from 1Q22 ◊ Net charge-offs of $909 thousand ◊ Net charge-offs to average loans outstanding of 1 bp during 2Q22 and 8bps for 2022 year to date ◊ Improved balance sheet liquidity and funding profile with the pending interLINK acquisition ◊ Declared a $0.20 quarterly dividend ◊ Common stock offering completed on March 3, 2022 providing net proceeds of ~$153.8 million and improving regulatory capital levels Profitability ◊ Operating earnings of $29.9 million, or $0.55 per diluted share ◊ PTPP ROAA of 1.76% ◊ Q2 year over year positive operating leverage of 4.5% on revenue growth of 19.2% ◊ Net interest margin increased to 3.42%, up 20 bps ◊ Net interest income up 16% quarter over quarter


 
6 Key Financial Metrics 52.84% 51.63% 48.51% 47.64% 52.05% 50.45% 2Q21 3Q21 4Q21 1Q22 2Q22 Reported Operating $17.16 $17.53 $17.49 $18.51 $18.20 2Q21 3Q21 4Q21 1Q22 2Q22 15.2% 17.7% 20.1% 15.8% 12.7% 2Q21 3Q21 4Q21 1Q22 2Q22 ROATCE Operating ROATCE ($ in millions) $79.9 $74.0 $50.1 $48.0 $45.0 0.85% 0.77% 0.51% 0.46% 0.40% -0.1% 0.1% 0.3% 0.5% 0.7% 0.9% 1.1% 2Q21 3Q21 4Q21 1Q22 2Q22 NPAs NPAs/Total Assets 1 11 11 1 52.42% 50.76% 16.9% 15.4% 20.5% 47.55% 16.1% 48.53% $0.59 $0.73 $0.82 $0.65 $0.54 $0.60 $0.70 $0.84 $0.66 $0.55 2Q21 3Q21 4Q21 1Q22 2Q22 Diluted EPS Diluted Operating EPS 1 Please refer to the “Reconciliation of Non-GAAP Financial Measures” at the end of this presentation for a description and reconciliation of these non-GAAP financial measures 12.8% TBVPS ROATCE Diluted EPS ($) PTPP ROAA Efficiency Ratio NPAs / Total Assets $38.5 $43.9 $48.6 $42.3 1.66% 1.85% 1.97% 1.71% 1.76% 0.0% 0.5% 1.0% 1.5% 2.0% 2Q21 3Q21 4Q21 1Q22 2Q22 PTPP Operating Earnings PTPP Operating ROAA $47.0


 
7 Disciplined Lending in Growing Texas Market 31% 28% 12% 8% 30% 31% 11% 19% 10% 10% 6% 3% $5.7 $5.9 $5.7 $5.8 $5.9 $6.0 $6.3 $6.6 $6.8 $7.1 $7.9 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 NOOCRE OOCRE Commercial Construction 1-4 Fam Multi Fam Other (<1%) CAGR: 14.0% Ex-Mortgage Warehouse and PPP Pandemic-Era Loan Growth ($B) Quarter over Quarter Loan Growth ($B) Growth: +11.3%


 
8 Disciplined Lending in Growing Texas Market $2.02 Billion $0.0 $0.5 $1.0 $1.5 $2.0 Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec 2022 Unfunded 2021 Unfunded CRE ADC Construction LOC Current Unfunded (Non-Revolving) QOQ Growth by Portfolio 4,382 13,108 58,144 86,414 160,852 235,659 324,503 Multifamily OOCRE NOOCRE MW 1-4 Family Resi Construction and land Commercial and Industrial ($ in thousands)


 
9 Prudent Underwriting for Growth


 
10 $71.3 $76.7 $73.0 $84.5 3.11% 3.26% 3.37% 3.22% 3.42% 3.03% 3.16% 3.31% 3.15% 3.37% 2Q21 3Q21 4Q21 1Q22 2Q22 Net Interest Income ("NII") NIM Adjusted NIM (Excludes All Purchase Accounting) $66.8 $8.7 $9.0 $9.2 2Q21 3Q21 4Q21 1Q22 2Q22 Average Earning Assets $8.7 $9.9 ($ in billions)($ in millions) 1Q22 Net Interest Income $73,040 Impact of growth 7,435 Impact of rate changes 2,438 Change due to day count 928 Change in earning asset mix and other 639 2Q22 Net Interest Income $84,480 14+% ($ in thousand) Quarter ending earning assets $10.5 Average Earnings Assets Net Interest Income Rollforward Interest Rate Sensitivity Growing Net Interest Income Interest Rate Scenario Forecasted Net Interest Income ($ in millions) Percentage Change From Base Forecasted Net Interest Margin Forecasted Net Interest Margin Change from Base Up 300 bps 466.1$ 15.02% 4.38% 14.66% Up 200 bps 445.7$ 10.01% 4.20% 9.95% Up 100 bps 425.5$ 4.99% 4.01% 4.97% BASE CASE 405.2$ 0.00% 3.82% 0.00% Down 100 bps 384.7$ -5.06% 3.63% -4.97% Down 200 bps 362.8$ -10.47% 3.42% -10.47% Base case above is static balances applying forward rate curve as of June 30, 2022.


 
11 Loan Yields Debt Investment Yields Variable and Hybrid Loans by Index Interest Rate Components of Loans and Investments 2.76% 2.70% 2.74% 2.76% 2.93% 2Q21 3Q21 4Q21 1Q22 2Q22 1 1 Excludes $2.1 million of prepayment penalty income on debt securities during 4Q21. 4.16% 4.16% 4.12% 4.03% 4.16% 2Q21 3Q21 4Q21 1Q22 2Q22 26% 4% 70% Loan Portfolio by Repricing Type Fixed Variable Hybrid 5 quarter loan yield trend, excluding MW and PPP 5 quarter investment yield trend, excluding prepayments Variable and Hybrid Loans by Rate Index Amount (in milions) % of Variable and Hyrbrid Loans 1-Month LIBOR 2,959.6$ 47.9% 12-Month LIBOR 321.8$ 5.2% SOFR 1,339.6$ 21.7% Prime Rate 1,547.2$ 25.0% Other 8.4$ 0.1% Total Variable and Hybrid Loans 6,176.6$ 100.0%


 
12 8% 49% 23%9% 9% 2% Equity Method Income Loan Fees Service Charges & Fees on Deposit Accounts $10.4 MILLION Govt. Guar. Loan Income Operating Noninterest Income ◊ Equity method investment income increased 163% driven by higher 2Q ‘22 income on our investment in Thrive ◊ Other income decreased 52% primarily due to $1.3 million in service asset valuation adjustments taken during 2Q ’22 slightly offset by a $688 thousand increase in derivative income ◊ Government guaranteed loan income, net, decreased 84% primarily due to a $3.5 million decrease in gains on sold USDA loans 2Q22 / 1Q22 Comparison 5 2Q22 Noninterest Income Composition Other Gain on MLHFS $4,710 $5,039 $2,794 $2,385 $367 $966 $4,891 $789 $2,028 $976 $307 $233 1Q22 2Q22 Service Charges & Fees on Deposit Accounts Loan Fees Equity Method Invst. Govt. Guaranteed Loan Income Other Gain on MLHFS $15,097 $10,378


 
13 $130 $389 $146 Underwriting Term Sheet Issued Prospects ($ in millions) USDA Pipeline $665M Gain on Sale % Total Volume $786.2 $797.9 $667.0 $544.8 $651.5 2Q21 3Q21 4Q21 1Q22 2Q22 3.62% 3.80% 3.60% 3.45% 3.47% 2Q21 3Q21 4Q21 1Q22 2Q22 ($ in millions) (Investment completed on July 19, 2021) Government Guaranteed and Thrive 5 Thrive Mortgage, LLC 5 Government Guaranteed Thrive’s retail channel increased 7% from May to June and decreased 15% year over year compared to the industry1 which reported a 5% decrease from May to June and 48% decrease year over year. 1 Source: Curinos SBA Pipeline $7.3 $11.6 $8.7 $20.1 $22.8 In Process In Underwriting In Closing Closed in 2022 Advancing Loans $70.5M ◊ Current USDA funding facts: Demand for B&I loan guarantees are greater than the amount of funding available and the USDA discontinued allocating funds on an as-requested basis and is awarding funds on a monthly basis. Funding is based on the project priority score according in the B&I project priority point system with unfunded requests carried to the following months funding cycle ◊ Premium compression down 40%-50% due to rising rates and economic uncertainty ◊ Servicing asset valuation allowance of $1.3 million booked in 2Q22 driven by higher interest rates and the outlook for additional Federal Reserve rate hikes


 
14 Operating Noninterest Expense ◊ Other expenses increased $1.3 million, of 18%, primarily due to a $1.2 million increase in loan-related legal and collection expenses ◊ Marketing expenses increased $1.1 million, or 94%, primarily due to increases in advertising and community reinvestment act donations during 2Q ‘22 2Q22 / 1Q22 Comparison 5 2Q22 Noninterest Expense Composition 56% 11% 9% 7% 6% 5% 5% 1% $47.9 MILLION Salary and Employee Benefits Other Occupancy and Equipment Data Processing Prof. Fees Amort. of Intang. Marketing $27,513 $26,924 $4,081 $5,386 $4,517 $4,496 $2,921 $3,386 $3,158 $2,865 $2,495 $2,495 $1,187 $2,306 1Q22 2Q22 Salary and Employee Benefits Other Occupancy and Equip. Data Processing Prof. Fees Amort. Of Intang. Marketing $45,872 $47,858


 
15 0.35% 0.30% 0.26% 0.26% 0.43% 0.23% 0.20% 0.18% 0.17% 0.28% 2Q21 3Q21 4Q21 1Q22 2Q22 Average cost of interest-bearing deposits Average cost of total deposits ◊ Total deposit balances increased $628.1 million, or 31.8% last quarter annualized (“LQA”), and increased $1.5 billion, or 22% YOY ◊ Excluding MW and PPP loans, the loan to deposit ratio was 93.1% at June 30, 2022 $3,113 $3,688 $4,007 $2,388 $2,766 $2,948 $1,478 $1,435 $1,563 2 Q 2 1 1 Q 2 2 2 Q 2 2 Interest Bearing Non-Int Bearing Certificates & Time Deposits 47% 35% 18% $8,518 $7,890 $6,979 LQA YOY Demand & Savings +35% +29% Non-Int Bearing +26% +23% Certificates and Time Deposits +35% +6% ($ in millions) Deposit Growth 5 Deposit Composition 5 Cost of Interest-bearing Deposits and Total Deposits


 
16 9.03% 9.84% 9.25% 2Q21 1Q22 2Q22 CET1 Total Capital 12.86% 12.73% 11.95% 2Q21 1Q22 2Q22 Regulatory Minimum + Capital Conservation Buffer 7.0% 10.5% - Support organic growth - Maintain strong debt ratings - Provide attractive dividend - Strategic growth, including M&A Strong Capital Supporting Fortress Balance Sheet Capital Levels TBVPS Capital Priorities 8.00% 6.00% 4.50% 10.50% 8.50% 7.00% Total Capital Tier 1 Capital CET1 Capital Minimum Capital Conservation Buffer Veritex 11.95% 9.52% 9.25% Capital in Excess of Buffer $247.0 $112.0 $159.1 ($ in millions) $0.56 $0.05 $0.03 $0.02 3/31/2022 Net Income SBC Expense CDI Amort. RSU Vesting Hedge AOCI Dividend AFS AOCI 6/30/2022 $18.51 $(0.20) $18.20 $(0.60) $(0.17)


 
171 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. 2Q21 3Q21 4Q21 1Q22 2Q22 0.00% 0.10% 0.20% 0.30% 0.40% 30-59 Past Due 60-89 Past Due 90+ Past Due 2Q21 3Q21 4Q21 1Q22 2Q22 Originated $1,269 $120 $2,921 $- $298 Acquired $4,124 $5,652 $9,747 $4,769 $611 ($ in thousands) ($ in millions) $388.5 $373.4 $347.7 $340.9 $330.1 2Q21 3Q21 4Q21 1Q22 2Q22 $100 $200 $300 $400 $500 Criticized Loans ($ in millions, excludes PCD loans) Totals: $10,017 $16,508 $9,997 $16,921 $7,373 (15%) $7,015 1Q22 Charge-offs Specific Impairments Change in Economic Factors Net Growth 2Q22 Improving Asset Quality and ACL Past Due Trend1 % of Total Loans2 Net Charge-offs Quarterly Criticized Loans ACL / Total Loans2


 
7/26/2022 187/26/2022 18 TRUTH | INTEGRITY | TRANSPARENCY Supplemental Information


 
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


 
23 Reconciliation of Non-GAAP Financial Measures


 
7/26/2022 247/26/2022 24 TRUTH | INTEGRITY | TRANSPARENCY Second Quarter


 
Document
Exhibit 99.3
https://cdn.kscope.io/0b6a175308d596c2a4c645fa0bbf0822-veritexseclogo.jpg

PRESS RELEASE
FOR IMMEDIATE RELEASE

Veritex Holdings, Inc. Declares Cash Dividend on Common Stock

Dallas, TX – July 27, 2022 – 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 August 26, 2022. to shareholders of record as of August 12, 2022.
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 includes “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,” “seek,” “plan,” “outlook,” “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 and are beyond Veritex’s control. Forward-looking statements speak only as of the date they are made and Veritex assumes no duty to supplement, update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.
Source: Veritex Holdings, Inc.

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