0001501570-23-000068 | 10-K | XBRL Viewer

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DERIVATIVE FINANCIAL INSTRUMENTS - AOCI Reclassification (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Derivatives designated as hedging instruments
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Net (loss) gain recognized in other comprehensive income on derivative	$ (41,499)	$ 33,338
Gain (loss) reclassified from accumulated other comprehensive income into income	5,020	3,777
Interest rate swap on borrowing advances \| Interest Expense \| Derivatives designated as hedging instruments
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Net (loss) gain recognized in other comprehensive income on derivative	(3,569)	26,357
Gain (loss) reclassified from accumulated other comprehensive income into income	3,569	0
Interest rate swap on money market deposit account payments \| Interest Expense \| Derivatives designated as hedging instruments
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Net (loss) gain recognized in other comprehensive income on derivative	16,693	6,995
Gain (loss) reclassified from accumulated other comprehensive income into income	3,208	(803)
Interest rate floor on customer loan interest payments \| Interest Income \| Derivatives designated as hedging instruments
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Net (loss) gain recognized in other comprehensive income on derivative	0	0
Gain (loss) reclassified from accumulated other comprehensive income into income	0	866
Interest rate swaps, collars and floor on customer loan interest payments \| Interest Income \| Derivatives designated as hedging instruments
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Net (loss) gain recognized in other comprehensive income on derivative	(54,623)	(14)
Gain (loss) reclassified from accumulated other comprehensive income into income	(1,757)	3,714
Interest rate caps and collars \| Derivatives not designated as hedging instruments
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Net Gain recognized in other noninterest income	$ 7,217	$ 1,913

PREMISES AND EQUIPMENT

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

PREMISES AND EQUIPMENT

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


	December 31,
	2022		2021
Building and improvements	$	56,517	$	53,955
Site improvements	2,903		2,903
Tenant improvements	779		779
Leasehold improvements	7,497		7,358
Land	38,709		38,709
Furniture, fixtures and equipment	27,417		25,662
Construction in progress	1,579		1,464
	135,401		130,830
Less accumulated depreciation and amortization	26,577		21,559
	$	108,824	$	109,271

The Company recorded depreciation and amortization expense of approximately $5,018, $3,123 and $4,535 for the years ended December 31, 2022, 2021 and 2020, respectively.

COMMITMENTS AND CONTINGENCIES	12 Months Ended
COMMITMENTS AND CONTINGENCIES	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Litigation The Company may from time to time be involved in legal actions arising from normal business activities. Management believes that these actions in which the Company or any of its subsidiaries is a defendant are without merit or that the ultimate liability, if any, resulting from them will not materially affect the financial position or results of operations of the Company. Refer to Note 12 "Advances from the FHLB", Note 14 "Borrowed Funds" and Note 18 "Off-Balance Sheet Loan Commitments" for further discussion on commitments.

LHI AND ACL

12 Months Ended

Dec. 31, 2022

Receivables [Abstract]

LHI AND ACL

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


	December 31,
	2022		2021
LHI, carried at amortized cost:
Real estate:
Construction and land	$	1,787,400	$	1,062,144
Farmland	43,500		55,827
1 - 4 family residential	894,456		542,566
Multi-family residential	322,679		310,241
OOCRE	715,829		665,537
NOOCRE	2,341,379		2,120,309
Commercial	2,940,353		2,006,876
MW	446,227		565,645
Consumer	7,806		11,998
	9,499,629		7,341,143

Deferred loan fees, net	(18,973)		(9,489)
ACL	(91,052)		(77,754)
LHI carried at amortized cost, net	$	9,389,604	$	7,253,900

LHI, carried at fair value:
PPP Loans	$	1,995	$	53,369

Total LHI, net	$	9,391,599	$	7,307,269

Included in the total LHI, net, as of December 31, 2022 and 2021 was an accretable discount related to purchased performing and PCD loans acquired in the approximate amounts of $8,260 and $8,657, respectively. The discount is being accreted into income on a level-yield basis over the life of the loans. In addition, included in total LHI, net, as of December 31, 2022 and 2021 is a discount on retained loans from sale of originated U.S. Small Business Administration ("SBA") and U.S. Department of Agriculture ("USDA") loans of $5,238 and $3,430, respectively. During 2022, the Company purchased $223,924 in pooled residential real estate loans at a net discount. The remaining net purchase discount of $4,135 is included in the total LHI, net and will be amortized on a straight line basis over five years.

LHI, PPP loans, carried at fair value

Included in total LHI, net, as of December 31, 2022 and 2021, was $1,995 and $53,369, respectively, of PPP loans, which are carried at fair value. The following table summarizes the PPP fee income and net gain due to the change in the fair value of PPP loans which are included in government guaranteed loan income, net on the Company's consolidated statements of income and in change in fair value of government guaranteed loans using fair value option on the Company's consolidated statements of cash flows.


	December 31, 2022		December 31, 2021

PPP fee income	$	—	$	7,721
Net gain due to the change in fair value	258		1,531

These PPP loans were originated through an application to the SBA under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act and are 100% forgivable if certain criteria are met by the borrowers. As of December 31, 2022 we believe a majority of the Company’s PPP loans will meet such criteria.

ACL

The Company’s estimate of the ACL reflects losses expected over the remaining contractual life of the assets. The contractual term does not consider extensions, renewals or modifications unless the Company has identified an expected troubled debt restructuring ("TDR"). The activity in the ACL related to LHI is as follows:


	December 31, 2022
	Construction and Land		Farmland		Residential		Multifamily		OOCRE		NOOCRE		Commercial		Consumer		Total
Balance at beginning of year	$	7,293	$	187	$	5,982	$	2,664	$	9,215	$	30,548	$	21,632	$	233	$	77,754
Credit loss (benefit) expense non-PCD loans	5,855		(60)		3,757		(57)		4,633		(2,588)		18,933		2,355		32,828
Credit (benefit) loss expense PCD loans	(28)		—		(237)		—		(2,766)		429		(2,000)		(1,276)		(5,878)
Charge-offs	—		—		—		—		(2,646)		(2,410)		(9,731)		(1,285)		(16,072)
Recoveries	—		—		31		—		271		725		1,308		85		2,420
Ending Balance	$	13,120	$	127	$	9,533	$	2,607	$	8,707	$	26,704	$	30,142	$	112	$	91,052


	December 31, 2021
	Construction and Land		Farmland		Residential		Multifamily		OOCRE		NOOCRE		Commercial		Consumer		Total
Balance at beginning of year	$	7,768	$	56	$	8,148	$	6,231	$	9,719	$	35,237	$	37,554	$	371	$	105,084
Credit loss (benefit) expense non-PCD loans	(547)		131		(2,153)		(3,567)		(2,325)		(7,490)		(9,510)		(401)		(25,862)
Credit loss expense PCD loans	72		—		302		—		3,721		10,737		7,622		59		22,513
Charge-offs	—		—		(379)		—		(2,400)		(7,936)		(15,576)		(99)		(26,390)
Recoveries	—		—		64		—		500		—		1,542		303		2,409
Ending Balance	$	7,293	$	187	$	5,982	$	2,664	$	9,215	$	30,548	$	21,632	$	233	$	77,754


	December 31, 2020
	Construction and Land		Farmland		Residential		Multifamily		OOCRE		NOOCRE		Commercial		Consumer		Total
Balance at beginning of year	$	3,821	$	62	$	2,143	$	1,200	$	1,991	$	8,126	$	12,369	$	122	$	29,834
Impact of adopting ASC 326 non-PCD loans	(707)		4		3,716		628		3,406		5,138		7,025		217		19,427
Impact of adopting ASC 326 PCD loans	645		—		908		—		7,682		2,037		8,335		103		19,710
Credit loss (benefit) expense non-PCD loans	4,554		(10)		1,720		4,403		4,364		15,397		24,413		(178)		54,663
Credit loss expense PCD loans	(545)		—		(378)		—		(5,303)		7,404		817		(18)		1,977
Charge-offs	—		—		(18)		—		(2,421)		(2,865)		(15,507)		(162)		(20,973)
Recoveries	—		—		57		—		—		—		102		287		446
Ending Balance	$	7,768	$	56	$	8,148	$	6,231	$	9,719	$	35,237	$	37,554	$	371	$	105,084

The majority of the Company's loan portfolio consists of loans to businesses and individuals in the Dallas-Fort Worth metroplex and the Houston metropolitan area. This geographic concentration subjects the loan portfolio to the general economic conditions within these areas. The risks created by this concentration have been considered by management in the determination of the adequacy of the ACL. Management believes the ACL was adequate to cover estimated losses on loans as of December 31, 2022 and 2021.

A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans as of December 31, 2022:


	December 31, 2022					December 31, 2021
		Real Property(1)		ACL Allocation			Real Property(1)		ACL Allocation





OOCRE		$	1,193	$	129		$	—	$	—
NOOCRE		20,896		2,138			17,908		7,808
Commercial		1,240		396			1,702		—

Consumer		15		—			1,063		—
Total		$	23,344	$	2,663		$	20,673	$	7,808

(1) Loans reported exclude PCD loans that transitioned upon adoption of ASC 326 and accounted for on a pooled basis. Refer to Note 1 for further discussion.

Nonaccrual and Past Due Loans

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

Nonaccrual loans, aggregated by class of loans, as of December 31, 2022 and 2021, were as follows:


	December 31, 2022				December 31, 2021
	Nonaccrual		Nonaccrual With No ACL			Nonaccrual		Nonaccrual With No ACL
Real estate:


1 - 4 family residential	$	862	$	862		$	990	$	990

OOCRE	9,737		8,545			14,236		13,824
NOOCRE	21,377		13,178			17,978		191
Commercial	11,397		2,521			15,267		4,207

Consumer	169		169			1,216		1,216
Total	$	43,542	$	25,275		$	49,687	$	20,428

There were $8,545 and $11,056 of PCD loans that are not accounted for on a pooled basis at December 31, 2022 and 2021, respectively. There was $13,178 of PCD loans that are accounted for on a pooled basis included in nonaccrual loans at December 31, 2022.

During the year ended December 31, 2022 and 2021, interest income not recognized on non-accrual loans, excluding PCD loans, was $6,567 and $2,718, respectively.

An age analysis of past due loans, aggregated by class of loans, as of December 31, 2022 and 2021 is as follows:


	December 31, 2022
	30 to 59 Days		60 to 89 Days		90 Days or Greater		Total Past Due(1)		Total Current		PCD		Total Loans		Total 90 Days Past Due and Still Accruing(2)
Real estate:
Construction and land	$	1,121	$	2,111	$	—	$	3,232	$	1,782,624	$	1,544	$	1,787,400	$	—
Farmland	—		—		—		—		43,500		—		43,500		—
1 - 4 family residential	4,319		129		499		4,947		888,329		1,180		894,456		123
Multi-family residential	1,000		—		—		1,000		321,679		—		322,679		—
OOCRE	3,342		1,186		1,193		5,721		690,291		19,817		715,829		—
NOOCRE	5,156		—		20,896		26,052		2,302,579		12,748		2,341,379		—
Commercial	3,088		2,188		1,675		6,951		2,929,701		3,701		2,940,353		—
MW	—		—		—		—		446,227		—		446,227		—
Consumer	352		—		45		397		7,386		23		7,806		2
	$	18,378	$	5,614	$	24,308	$	48,300	$	9,412,316	$	39,013	$	9,499,629	$	125

(1) Total past due loans includes $13,178 of pooled PCD loans as of December 31, 2022.

(2) Loans 90 days past due and still accruing excludes $2,004 of PCD loans and $669 of PPP loans as of December 31, 2022.


	December 31, 2021
	30 to 59 Days		60 to 89 Days		90 Days or Greater		Total Past Due		Total Current		PCD		Total Loans		Total 90 Days Past Due and Still Accruing (1)
Real estate:
Construction and land	$	—	$	—	$	—	$	—	$	1,059,796	$	2,348	$	1,062,144	$	—
Farmland	—		—		—		—		55,827		—		55,827		—
1 - 4 family residential	2,073		—		1,008		3,081		538,307		1,178		542,566		24
Multi-family residential	—		—		—		—		310,241		—		310,241		—
OOCRE	4,538		965		11,622		17,125		620,848		27,564		665,537		—
NOOCRE	936		—		192		1,128		2,100,981		18,200		2,120,309		—
Commercial	1,525		4,395		3,708		9,628		1,988,622		8,626		2,006,876		191
MW	—		—		—		—		565,645		—		565,645		—
Consumer	135		105		1,082		1,322		10,499		177		11,998		20
	$	9,207	$	5,465	$	17,612	$	32,284	$	7,250,766	$	58,093	$	7,341,143	$	235

(1) Loans 90 days past due and still accruing excludes $9,345 of pooled PCD loans and $206 of PPP loans as of December 31, 2021.

Loans 90 days past due and still accruing interest were $125 and $235 as of December 31, 2022 and December 31, 2021, respectively. These loans are considered well-secured and in the process of collection as of the reporting date with plans in place for the borrowers to bring the loans fully current. The Company believes that it will collect all principal and interest due on each of the loans 90 days past due and still accruing.

Troubled Debt Restructuring

Modifications of terms for the Company’s loans and their inclusion as TDRs are based on individual facts and circumstances. Loan modifications that are included as TDRs may involve a reduction of the stated interest rate of the loan, an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk, or deferral of principal payments, regardless of the period of the modification. The recorded investment in TDRs was $13,666 and $25,518 as of December 31, 2022 and 2021, respectively.

The following table presents the pre- and post-modification amortized cost of loans modified as TDRs during the twelve months ended December 31, 2022. There was three new TDR during the year ended December 31, 2022 and one new TDRs during the year ended December 31, 2021, which was paid off prior to year-end. The Company did not grant principal reductions or interest rate concessions on any TDRs during the twelve months ended December 31, 2022. The terms of certain loans modified as TDRs during the year ended December 31, 2022 and December 31, 2021 are summarized in the following tables:


	During the year ended December 31, 2022
	Adjusted Payment Structure		Payment Deferrals		Total Modifications		Number of Loans






Commercial	$	—	$	946	$	946	1

Consumer	29		—		29		2
Total	$	29	$	946	$	975	3

There were no loans modified as TDR loans within the previous 12 months and for which there was a payment default during the years ended December 31, 2022 and 2021. A default for purposes of this disclosure is a TDR loan in which the borrower is 90 days past due or results in the foreclosure and repossession of the applicable collateral.

During the years ended December 31, 2022 and 2021, interest income that would have been recorded on TDR loans had the terms of the loans not been modified was $742 and $778, respectively.

The Company has not committed to lend additional amounts to customers with outstanding loans classified as TDRs as of December 31, 2022 or December 31, 2021.

Credit Quality Indicators

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

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

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

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

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

Credits classified as PCD are those that, at acquisition date, have experienced a more-than-insignificant deterioration in credit quality since origination. All loans considered to be PCI loans prior to January 1, 2020 were converted to PCD loans upon adoption of ASC 326. The Company elected to maintain pools of loans that were previously accounted for under ASC 310-30 and will continue to account for these pools as a unit of account. Loans are only removed from the existing pools if they are foreclosed, written off, paid off, or sold.

The Company considers the guidance in ASC 310-20 when determining whether a modification, extension or renewal of a loan constitutes a current period origination. Generally, current period renewals of credit are re-underwritten at the point of renewal and considered current period originations for purposes of the table below. Based on the most recent analysis performed, the risk category of loans by class of loans based on year or origination is as follows:


	Term Loans Amortized Cost Basis by Origination Year1
	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
As of December 31,
Construction and land:
Pass	$	347,855	$	709,208	$	378,229	$	69,241	$	30,673	$	14,025	$	215,263	$	140	$	1,764,634
Special mention	—		18,662		2,560		—		—		—		—		—		21,222

PCD	—		—		—		—		—		1,544		—		—		1,544
Total construction and land	$	347,855	$	727,870	$	380,789	$	69,241	$	30,673	$	15,569	$	215,263	$	140	$	1,787,400

Farmland:
Pass	$	2,546	$	16,242	$	18,530	$	21	$	—	$	5,069	$	1,092	$	—	$	43,500



Total farmland	$	2,546	$	16,242	$	18,530	$	21	$	—	$	5,069	$	1,092	$	—	$	43,500

1 - 4 family residential:


Pass	$	135,006	$	188,635	$	87,861	$	43,293	$	41,960	$	257,768	$	86,900	$	726	$	842,149
Special mention	—		—		—		—		—		278		26,068		—		26,346
Substandard	—		184		—		—				1,028		23,569		—		24,781
PCD	—		—		—		—		—		1,180		—		—		1,180
Total 1-4 family residential	$	135,006	$	188,819	$	87,861	$	43,293	$	41,960	$	260,254	$	136,537	$	726	$	894,456

Multi-family residential:
Pass	$	72,044	$	80,793	$	110,426	$	8,402	$	32,822	$	2,494	$	—	$	—	$	306,981

Substandard	—		—		—		1,954		13,744		—		—		—		15,698

Total multi-family residential	$	72,044	$	80,793	$	110,426	$	10,356	$	46,566	$	2,494	$	—	$	—	$	322,679

OOCRE:
Pass	$	191,044	$	106,698	$	84,230	$	43,965	$	49,461	$	167,968	$	5,225	$	—	$	648,591
Special mention	—		2,321		1,409		1,964		—		3,447		—		45		9,186
Substandard	—		—		—		—		23,231		15,004		—		—		38,235
PCD	—		—		—		—		—		19,817		—		—		19,817
Total OOCRE	$	191,044	$	109,019	$	85,639	$	45,929	$	72,692	$	206,236	$	5,225	$	45	$	715,829

NOOCRE:
Pass	$	752,476	$	531,735	$	215,076	$	149,246	$	196,424	$	305,434	$	16,642	$	465	$	2,167,498
Special mention	—		—		22,774		19,464		12,274		51,451		—		—		105,963
Substandard	—		—		—		1,310		7,659		46,201		—		—		55,170
PCD	—		—		—		—		12,697		51		—		—		12,748
Total NOOCRE	$	752,476	$	531,735	$	237,850	$	170,020	$	229,054	$	403,137	$	16,642	$	465	$	2,341,379

Commercial:
Pass	$	473,084	$	132,396	$	88,548	$	83,996	$	40,030	$	31,269	$	1,906,074	$	553	$	2,755,950
Special mention	—		666		—		4,543		7,385		270		114,447		—		127,311
Substandard	17,894		4,058		5,189		4,195		10,954		4,732		6,292		77		53,391
PCD	—		—		—		—		273		3,428		—		—		3,701
Total commercial	$	490,978	$	137,120	$	93,737	$	92,734	$	58,642	$	39,699	$	2,026,813	$	630	$	2,940,353

MW:
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	444,393	$	—	$	444,393
Special mention	—		—		—		—		—		—		1,626		—		1,626
Substandard	—		—		—		—		46		162		—		—		208

Total MW	$	—	$	—	$	—	$	—	$	46	$	162	$	446,019	$	—	$	446,227

Consumer:
Pass	$	1,965	$	452	$	872	$	216	$	135	$	2,298	$	1,618	$	—	$	7,556
Special mention	—		—		—		—		—		58		—		—		58
Substandard	—		—		—		—		—		169		—		—		169
PCD	—		—		—		—		—		23		—		—		23
Total consumer	$	1,965	$	452	$	872	$	216	$	135	$	2,548	$	1,618	$	—	$	7,806

Total Pass	$	1,976,020	$	1,766,159	$	983,772	$	398,380	$	391,505	$	786,325	$	2,677,207	$	1,884	$	8,981,252
Total Special Mention	—		21,649		26,743		25,971		19,659		55,504		142,141		45		291,712
Total Substandard	17,894		4,242		5,189		7,459		55,634		67,296		29,861		77		187,652
Total PCD	—		—		—		—		12,970		26,043		—		—		39,013


Total						$	1,993,914					$	1,792,050					$	1,015,704					$	431,810					$	479,768					$	935,168					$	2,849,209					$	2,006					$	9,499,629

1 Term loans amortized cost basis by origination year excludes $18,973 of deferred loan fees, net.


	Term Loans Amortized Cost Basis by Origination Year1
	2021			2020			2019			2018		2017		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
As of December 31,
Construction and land:
Pass	$	389,420		$	453,262		$	116,855		$	57,637	$	5,741	$	29,182	$	4,631	$	1,163	$	1,057,891
Special mention	—			1,593			—			312		—		—		—		—		1,905

PCD	—			—			—			—		—		2,348		—		—		2,348
Total construction and land	$	389,420		$	454,855		$	116,855		$	57,949	$	5,741	$	31,530	$	4,631	$	1,163	$	1,062,144

Farmland:
Pass	$	16,849		$	28,655		$	27		$	3,367	$	2,957	$	2,643	$	1,329	$	—	$	55,827



Total farmland	$	16,849		$	28,655		$	27		$	3,367	$	2,957	$	2,643	$	1,329	$	—	$	55,827

1 - 4 family residential:
Pass	$	191,333		$	101,377		$	54,826		$	59,861	$	27,743	$	85,661	$	12,659	$	6,025	$	539,485
Special mention	—			—			—			—		—		352		—		—		352
Substandard	—			—			—			—		81		903		567		—		1,551
PCD	—			—			—			—		—		1,178		—		—		1,178
Total 1 - 4 family residential	$	191,333		$	101,377		$	54,826		$	59,861	$	27,824	$	88,094	$	13,226	$	6,025	$	542,566

Multi-family residential:
Pass	$	67,979		$	59,239		$	54,321		$	68,531	$	11,815	$	27,020	$	49	$	—	$	288,954
Special mention	—			—			—			21,287		—		—		—		—		21,287


Total multi-family residential	$	67,979		$	59,239		$	54,321		$	89,818	$	11,815	$	27,020	$	49	$	—	$	310,241

OOCRE:
Pass	$	114,413		$	111,516		$	56,964		$	73,112	$	54,921	$	174,500	$	2,986	$	2,965	$	591,377
Special mention	2,420			—			1,052			—		—		6,232		—		—		9,704
Substandard	—			412			—			25,440		781		10,259		—		—		36,892
PCD	—			1,377			—			—		6,567		19,620		—		—		27,564
Total OOCRE	$	116,833		$	113,305		$	58,016		$	98,552	$	62,269	$	210,611	$	2,986	$	2,965	$	665,537

NOOCRE:
Pass	$	628,140		$	298,091		$	254,566		$	319,359	$	56,710	$	336,713	$	5,861	$	23,015	$	1,922,455
Special mention	—			613			1,685			29,469		16,354		48,952		—		489		97,562
Substandard	—		0	48		0	1,775		0	26,209		1,581		52,479		—		—		82,092
PCD	—			—			—			13,620		—		4,580		—		—		18,200
Total NOOCRE	$	628,140		$	298,752		$	258,026		$	388,657	$	74,645	$	442,724	$	5,861	$	23,504	$	2,120,309

Commercial:
Pass	$	430,213		$	187,370		$	124,798		$	65,186	$	40,254	$	52,491	$	968,229	$	19,130	$	1,887,671
Special mention	7,958			2,341			149			15,136		1,069		3,368		3,482		2,589		36,092
Substandard	15,662			5,843			6,286			14,908		4,167		2,779		20,500		4,342		74,487
PCD	—			—			—			315		1,785		6,526		—		—		8,626
Total commercial	$	453,833		$	195,554		$	131,233		$	95,545	$	47,275	$	65,164	$	992,211	$	26,061	$	2,006,876


MW:
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	564,850	$	250	$	565,100

Substandard	—		—		—		—		—		—		545		—		545

Total MW	$	—	$	—	$	—	$	—	$	—	$	—	$	565,395	$	250	$	565,645

Consumer:
Pass	$	3,362	$	1,566	$	512	$	408	$	2,777	$	784	$	1,006	$	25	$	10,440
Special mention	—		—		—		—		65		14		—		—		79
Substandard	—		—		22		—		177		39		1,064		—		1,302
PCD	—		—		—		—		24		153		—		—		177
Total consumer	$	3,362	$	1,566	$	534	$	408	$	3,043	$	990	$	2,070	$	25	$	11,998

Total Pass	$	1,841,709	$	1,241,076	$	662,869	$	647,461	$	202,918	$	708,994	$	1,561,600	$	52,573	$	6,919,200
Total Special Mention	10,378		4,547		2,886		66,204		17,488		58,918		3,482		3,078		166,981
Total Substandard	15,662		6,303		8,083		66,557		6,787		66,459		22,676		4,342		196,869
Total PCD	—		1,377		—		13,935		8,376		34,405		—		—		58,093
Total	$	1,867,749	$	1,253,303	$	673,838	$	794,157	$	235,569	$	868,776	$	1,587,758	$	59,993	$	7,341,143

1 Term loans amortized cost basis by origination year excludes $9,489 of deferred loan fees, net.

Servicing Assets

The Company was servicing loans of approximately $543,220 and $509,977 as of December 31, 2022 and 2021, respectively. A summary of the changes in the related servicing assets are as follows:


	Year Ended December 31,
	2022		2021
Balance at beginning of year	$	17,705	$	3,363
Servicing assets acquired through acquisition	—		13,913
Increase from loan sales	2,670		1,330
Servicing asset impairment, net of recoveries	(1,823)		(71)
Amortization charged as a reduction to income	(3,672)		(830)

Balance at year-end	$	14,880	$	17,705

Fair value of servicing assets is estimated by discounting estimated future cash flows from the servicing assets using discount rates that approximate current market rates over the expected lives of the loans being serviced. A valuation allowance is recorded when the fair value is below the carrying amount of the asset. As of December 31, 2022 and 2021 there was a valuation allowance of $2,451 and $628, respectively.

The Company may also receive a portion of subsequent interest collections on loans sold that exceed the contractual servicing fees. In that case, the Company records an interest-only strip based on its relative fair market value and the other components of the loans. There was no interest-only strip receivable recorded at December 31, 2022 and 2021.

The following table reflects principal sold and related gain for SBA and USDA LHFI. The gain on sale of these loans is recorded in government guaranteed loan income, net in the Company's consolidated statements of income.


	Year Ended December 31,
	2022		2021		2020
SBA LHFI principal sold	$	9,491	$	40,001	$	41,488
Gain on sale of SBA LHFI	848		4,911		3,379
USDA LHFI principal sold	72,670		—		—
Gain on sale of USDA LHFI	10,731		—		—

LEASES - Lease Costs and Other Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Leases [Abstract]
Operating lease cost	$ 5,161	$ 4,298
Variable lease cost	640	641
Net lease cost	5,801	4,939
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 4,781	$ 4,051
Weighted-average remaining lease term - operating leases, in years	5 years 4 months 24 days	6 years
Weighted-average discount rate - operating leases	2.88%	1.94%

DERIVATIVE FINANCIAL INSTRUMENTS - Balance Sheet Information (Details) - USD ($)	Dec. 31, 2022	Oct. 31, 2022	Aug. 31, 2022	Dec. 31, 2021	Mar. 31, 2021
Derivative [Line Items]
Notional Amount	$ 2,922,362,000			$ 1,468,406,000
Asset Derivative
Gross derivatives	36,878,000			9,181,000
Offsetting derivative assets	(30,982,000)			(2,609,000)
Liability Derivative
Gross derivatives	63,997,000			3,736,000
Offsetting derivative liabilities	(30,982,000)			(2,609,000)
Derivatives designated as hedging instruments
Derivative [Line Items]
Notional Amount	1,175,000,000			625,000,000
Asset Derivative
Gross derivatives	26,523,000			7,001,000
Liability Derivative
Gross derivatives	54,171,000			1,404,000
Derivatives designated as hedging instruments \| Interest rate swaps
Derivative [Line Items]
Notional Amount	250,000,000			250,000,000	$ 125,000
Asset Derivative
Gross derivatives	21,234,000			4,541,000
Liability Derivative
Gross derivatives	0			0
Derivatives designated as hedging instruments \| Interest rate swaps on customer loan interest payments
Derivative [Line Items]
Notional Amount	375,000,000			375,000,000
Asset Derivative
Gross derivatives	0			2,460,000
Liability Derivative
Gross derivatives	49,211,000			1,404,000
Derivatives designated as hedging instruments \| Interest rate collars on customer loan interest payments
Derivative [Line Items]
Notional Amount	450,000,000	$ 100,000	$ 350,000	0
Asset Derivative
Gross derivatives	3,267,000			0
Liability Derivative
Gross derivatives	4,960,000			0
Derivatives designated as hedging instruments \| Interest rate floor on customer loan interest payments
Derivative [Line Items]
Notional Amount	100,000,000	$ 100,000		0
Asset Derivative
Gross derivatives	2,022,000			0
Liability Derivative
Gross derivatives	0			0
Derivatives not designated as hedging instruments
Derivative [Line Items]
Notional Amount	1,747,362,000			843,406,000
Asset Derivative
Gross derivatives	41,337,000			4,789,000
Liability Derivative
Gross derivatives	40,808,000			4,941,000
Derivatives not designated as hedging instruments \| Interest rate swaps \| Financial institution counterparty
Derivative [Line Items]
Notional Amount	805,311,000			379,787,000
Asset Derivative
Gross derivatives	38,839,000			1,527,000
Liability Derivative
Gross derivatives	1,126,000			3,498,000
Derivatives not designated as hedging instruments \| Interest rate swaps \| Commercial customer counterparty
Derivative [Line Items]
Notional Amount	805,311,000			379,787,000
Asset Derivative
Gross derivatives	1,004,000			3,261,000
Liability Derivative
Gross derivatives	38,188,000			1,442,000
Derivatives not designated as hedging instruments \| Interest rate caps and collars \| Financial institution counterparty
Derivative [Line Items]
Notional Amount	68,370,000			41,916,000
Asset Derivative
Gross derivatives	1,494,000			0
Liability Derivative
Gross derivatives	0			1,000
Derivatives not designated as hedging instruments \| Interest rate caps and collars \| Commercial customer counterparty
Derivative [Line Items]
Notional Amount	68,370,000			41,916,000
Asset Derivative
Gross derivatives	0			1,000
Liability Derivative
Gross derivatives	$ 1,494,000			$ 0

STOCK AND INCENTIVE PLANS - Stock Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
2022 Equity Plan
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock based compensation expense	$ 11,109	$ 8,614
Veritex (Green) 2014 Plan
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock based compensation expense	$ 820	$ 1,959

GOODWILL (Details) - USD ($) $ in Thousands	12 Months Ended
GOODWILL (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Balance at beginning of year
Balance at beginning of year	$ 403,771	$ 370,840
NAC acquisition	681	32,931
Balance at end of year	$ 404,452	$ 403,771

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

SUPPLEMENTAL STATEMENT OF CASH FLOWS

12 Months Ended

Dec. 31, 2022

Supplemental Cash Flow Elements [Abstract]

SUPPLEMENTAL STATEMENT OF CASH FLOWS

Other supplemental cash flow information is presented below:


	Year Ended December 31,
	2022		2021		2020
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest	$	77,298	$	37,139	$	58,236
Cash paid for income taxes	36,165		14,349		40,690
Supplemental Disclosures of Non-Cash Flow Information:

Setup of ROU asset and lease liability	$	—	$	6,232	$	4,123

Contingent consideration in connection with acquisitions	—		5,000		—





Transfer of AFS debt securities to HTM debt securities	117,001		—		—
Net foreclosure of OREO and repossessed assets	—		334		2,764
LHI transferred to LHFS	—		10,890		4,511


	Adjustments to Purchase Price Accounting Related to Mergers and Acquisitions
	Year Ended December 31,
	2022		2021		2020
Noncash assets acquired1




LHI	$	(681)	$	29,338	$	—





Intangible assets, net	—		13,913		—
Goodwill	681		32,931		—
Other assets	—		690		—




Total assets	$	—	$	76,872	$	—
Noncash liabilities assumed1



Accounts payable and other liabilities	—		16,350		—






Total liabilities	$	—	$	16,350	$	—


Total equity

1 Noncash assets acquired and noncash liabilities assumed during 2021 related to our acquisition of North Avenue Capital, LLC. ("NAC").

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Bank Premises and Equipment (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Impairment charges	$ 0	$ 0	$ 0
Site improvements
Property, Plant and Equipment [Line Items]
Estimated useful lives (in years)	15 years
Minimum \| Building and improvements
Property, Plant and Equipment [Line Items]
Estimated useful lives (in years)	10 years
Minimum \| Furniture and equipment
Property, Plant and Equipment [Line Items]
Estimated useful lives (in years)	3 years
Maximum \| Building and improvements
Property, Plant and Equipment [Line Items]
Estimated useful lives (in years)	40 years
Maximum \| Furniture and equipment
Property, Plant and Equipment [Line Items]
Estimated useful lives (in years)	10 years

INTANGIBLE ASSETS - Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets, Net [Abstract]
Gross intangible asset	$ 111,308	$ 108,638
Valuation allowance	2,451	627
Accumulated amortization	55,644	41,994
Net intangible assets	53,213	66,017
Amortization of intangible assets	9,979	10,057	$ 10,790
Amortization of Intangible Assets, Occupancy and Equipment, and Other Income
Finite-Lived Intangible Assets, Net [Abstract]
Amortization of intangible assets	$ 13,650	$ 10,888	$ 11,297
Core deposit intangibles
Finite-Lived Intangible Assets, Net [Abstract]
Weighted amortization period	4 years	5 years
Gross intangible asset	$ 81,769	$ 81,769
Valuation allowance	0	0
Accumulated amortization	43,523	33,771
Net intangible assets	$ 38,246	$ 47,998
Servicing asset
Finite-Lived Intangible Assets, Net [Abstract]
Weighted amortization period	7 years 4 months 24 days	7 years 2 months 12 days
Gross intangible asset	$ 24,760	$ 22,090
Valuation allowance	2,451	627
Accumulated amortization	7,429	3,758
Net intangible assets	$ 14,880	$ 17,705
Intangible lease assets
Finite-Lived Intangible Assets, Net [Abstract]
Weighted amortization period	3 months 18 days	1 year 3 months 18 days
Gross intangible asset	$ 4,779	$ 4,779
Valuation allowance	0	0
Accumulated amortization	4,692	4,465
Net intangible assets	$ 87	$ 314

PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands	12 Months Ended
PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Bank premises, furniture and equipment, gross	$ 135,401	$ 130,830
Less accumulated depreciation and amortization	26,577	21,559
Bank premises, furniture and equipment, net	108,824	109,271
Depreciation	5,018	3,123	$ 4,535
Building and improvements
Property, Plant and Equipment [Line Items]
Bank premises, furniture and equipment, gross	56,517	53,955
Site improvements
Property, Plant and Equipment [Line Items]
Bank premises, furniture and equipment, gross	2,903	2,903
Tenant improvements
Property, Plant and Equipment [Line Items]
Bank premises, furniture and equipment, gross	779	779
Leasehold improvements
Property, Plant and Equipment [Line Items]
Bank premises, furniture and equipment, gross	7,497	7,358
Land
Property, Plant and Equipment [Line Items]
Bank premises, furniture and equipment, gross	38,709	38,709
Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Bank premises, furniture and equipment, gross	27,417	25,662
Construction in progress
Property, Plant and Equipment [Line Items]
Bank premises, furniture and equipment, gross	$ 1,579	$ 1,464

SHARE TRANSACTIONS

12 Months Ended

Dec. 31, 2022

Equity [Abstract]

SHARE TRANSACTIONS

The Company's Board of Directors (the “Board”) has authorized the purchase of up to $250,000 of the Company's outstanding common stock under a stock buyback program (the "Stock Buyback Program") with an expiration date of December 31, 2022. The shares may be repurchased in the open market or in privately negotiated transactions from time to time, depending upon market conditions and other factors, and in accordance with applicable regulations of the Securities and Exchange Commission (“SEC”). The Stock Buyback Program does not obligate the Company to purchase any shares. The Stock Buyback Program may be terminated or amended by the Board at any time prior to its expiration.


	Year Ended December 31,
	2022		2021
Number of shares repurchased	—		475,744
Weighted average price per share	$	—	$	32.36

In August 2022, the Inflation Reduction Act of 2022 (the “IRA”) was enacted. Among other things, the IRA imposes a new 1% excise tax on the fair market value of stock repurchased after December 31, 2022 by publicly traded U.S. corporations. With certain exceptions, the value of stock repurchased is determined net of stock issued in the year, including pursuant to compensatory arrangements.

Common Stock Offering

On March 8, 2022, the Company completed an underwritten public offering of 3,947,369 shares of its common stock at $38.00 per share. On March 10, 2022, the representatives of the underwriters delivered to the Company a written notice of exercise by the underwriters of the underwriters' option to purchase an additional 367,105 shares of the Company's common stock at $38.00 per share, which subsequently closed on March 14, 2022. Net proceeds, after deducting underwriting discounts and offering expenses, of such offering were approximately $154,372. The Company intends to use the net proceeds from the offering for general corporate purposes and to support its continued growth, including investments in the Bank and future strategic acquisitions.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Nature of Organization (Details)	12 Months Ended
	Dec. 31, 2022 branch
Dallas-Fort Worth
Product Information [Line Items]
Number of branches	18
Houston
Product Information [Line Items]
Number of branches	10

STOCK AND INCENTIVE PLANS - 2019 Amended Plan - Options (Details) - 2022 Equity Plan - Non-performance Based Stock Options - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Shares Underlying Options
Outstanding at beginning of period (in shares)	710,043	975,801	849,768
Granted (in shares)	1,500	500	185,025
Forfeited (in shares)		(13,996)	(25,053)
Exercised (in shares)	(54,049)	(252,262)	(33,939)
Outstanding at the end of period (in shares)	657,494	710,043	975,801	849,768
Options exercisable at end of period (in shares)	550,454
Weighted Average Exercise Price
Outstanding at beginning of period (in dollars per share)	$ 24.38	$ 24.26	$ 23.61
Granted (in dollars per share)	31.26	36.54	26.73
Forfeited (in dollars per share)		25.93	27.37
Exercised (in dollars per share)	23.51	23.87	19.10
Outstanding at the end of period (in dollars per share)	24.47	$ 24.38	$ 24.26	$ 23.61
Options exercisable at end of period (in dollars per share)	24.64
Weighted average fair value of options granted during the period (in dollars per share)	$ 31.26
Weighted Average Remaining Contractual Term
Outstanding at beginning of year, term (in years)	5 years 6 months 29 days	6 years 10 months 28 days	7 years 5 months 12 days	8 years 2 months 26 days
Exercisable, term (in years)	5 years 3 months 18 days
Aggregate Intrinsic Value
Aggregate intrinsic value of outstanding stock options (in dollars)	$ 2,547
Options exercisable, intrinsic value	$ 2,019

FAIR VALUE DISCLOSURES

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

FAIR VALUE DISCLOSURES

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

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

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

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

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

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

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

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

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

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

PPP Loans: The fair value of PPP loans is based on commitments from investors or prevailing market prices.

LHFS: The fair value of government guaranteed loans held-for-sale is based on commitments from investors or prevailing market prices.

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

The following table summarizes assets measured at fair value on a recurring basis as of December 31, 2022 and 2021, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:


	December 31, 2022
	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
Financial Assets:
AFS debt securities	$	—	$	1,096,292	$	—	$	1,096,292
Equity securities with a readily determinable fair value	9,792		—		—		9,792
PPP Loans	—		—		1,995		1,995
LHFS (1)	—		19,775		—		19,775
Interest rate swaps designated as hedging instruments	—		26,523		—		26,523
Correspondent interest rate swaps not designated as hedging instruments	—		38,839		—		38,839
Customer interest rate swaps not designated as hedging instruments	—		1,004		—		1,004

Correspondent interest rate caps and collars not designated as hedging instruments	—		1,494		—		1,494
Financial Liabilities:
Interest rate swaps designated as hedging instruments	$	—	$	54,171	$	—	$	54,171
Correspondent interest rate swaps not designated as hedging instruments	—		1,126		—		1,126
Customer interest rate swaps not designated as hedging instruments	—		38,188		—		38,188
Customer interest rate caps and collars not designated as hedging instruments	—		1,494		—		1,494

(1) Represents LHFS elected to be carried at fair value upon origination or acquisition.


	December 31, 2021
	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
Financial Assets:
AFS debt securities	$	—	$	993,058	$	—	$	993,058
Equity securities with a readily determinable fair value	11,038		—		—		11,038
PPP Loans	—		53,369		—		53,369
LHFS (1)	—		9,867		—		9,867
Interest rate swaps designated as hedging instruments	—		7,001		—		7,001
Correspondent interest rate swaps not designated as hedging instruments	—		1,527		—		1,527
Customer interest rate swaps not designated as hedging instruments	—		3,261		—		3,261
Customer interest rate caps and collars not designated as hedging instruments	—		1		—		1
Financial Liabilities:
Interest rate swaps designated as hedging instruments	$	—	$	1,404	$	—	$	1,404
Correspondent interest rate swaps not designated as hedging instruments	—		3,498		—		3,498
Customer interest rate swaps not designated as hedging instruments	—		1,442		—		1,442
Correspondent interest rate caps and collars not designated as hedging instruments	—		1		—		1

(1) Represents LHFS elected to be carried at fair value upon origination or acquisition.

There were no transfers between Level 2 and Level 3 during the years ended December 31, 2022 and 2021.

Certain assets, including collateral dependent loans with an ACL and servicing asset with a valuation allowance are measured at fair value on a non-recurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment).

Collateral Dependent Loans with an ACL: A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. The ACL is measured by estimating the fair value of the loan's underlying collateral. For real estate loans, fair value of the loan’s collateral is determined by third-party appraisals, which are then adjusted for the estimated selling and closing costs related to liquidation of the collateral. Appraisals for collateral dependent loans with an ACL are performed by certified general appraisers whose qualifications and licenses have been reviewed and verified by the Company. Once reviewed, a member of the credit department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparisons to independent data sources such as recent market data or industry wide-statistics. On a periodic basis, the Company compares the actual selling price of collateral that has been sold to the most recent appraised value to determine what additional adjustments, if any, should be made to the appraisal value to arrive at fair value.

Servicing Assets with a Valuation Allowance: The fair value of the servicing asset is estimated using discounted cash flows based on current market interest rates. A valuation allowance is recorded when the fair value is below the carrying amount of the asset.

The following table summarizes assets measured at fair value on a non-recurring basis as of December 31, 2022 and 2021, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:


	Fair Value
	Measurements Using
	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
As of December 31, 2022
Assets:
Collateral dependent loans with an ACL	$	—	$	—	$	7,969	$	7,969
Servicing assets with a valuation allowance	—		—		10,984		10,984


As of December 31, 2021
Assets:
Collateral dependent loans with an ACL	$	—	$	—	$	10,100	$	10,100
Servicing assets with a valuation allowance	—		—		3,223		3,223

At December 31, 2022, collateral dependent loans with an ACL had a recorded investment of $10,632, with $2,663 specific allowance for credit loss allocated. At December 31, 2021, collateral dependent loans with an ACL had a recorded investment of $17,908, with $7,808 specific allowance for credit loss allocated.

At December 31, 2022, servicing assets of $13,435 had a valuation allowance totaling $2,451. At December 31, 2021, servicing assets of $3,850 had a valuation allowance totaling $627.

There were no liabilities measured at fair value on a non-recurring basis as of December 31, 2022 and 2021.

Fair Value of Financial Instruments

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

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

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

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

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

LHI: The fair value of LHI, excluding previously presented collateral dependent loans with an ACL measured at fair value on a non-recurring basis, is estimated using a discounted cash flow analysis. The discount rates used to determine fair value use interest rate spreads that reflect factors such as liquidity, credit, and prepayment risk of the loans. Loans are considered a Level 3 financial asset.

Securities purchased under agreements to resell: The fair value for securities purchased under agreements to resell approximate their carrying value as these reprice at market rates generally daily.

LHFS: LHFS, including mortgage loans, which are carried at the lower of cost or estimated fair value. The fair value for the mortgage loans approximate their carrying value and these loans are considered Level 2 financial assets.

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

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

Servicing Asset: Fair value is estimated by discounting estimated future cash flows from the servicing assets using discount rates that approximate current market rates over the expected lives of the loans being serviced. A valuation allowance is recorded when the fair value is below the carrying amount of the asset.

Equity securities without a readily determinable fair value: Certain equity securities are carried at cost as these securities did not have a readily determinable fair value. There were no observable price changes in orderly transactions for the identical or a similar investment of the same issuer as of December 31, 2022 and 2021.

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

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

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

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

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

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

The estimated fair values and carrying values of all financial instruments not measured at fair value on a recurring or non-recurring basis under current authoritative guidance as of December 31, 2022 and 2021 were as follows:


			Fair Value
	Carrying Amount		Level 1		Level 2		Level 3
December 31, 2022
Financial assets:
Cash and cash equivalents	$	436,077	$	—	$	436,077	$	—
Held-to-maturity debt securities	186,168		—		158,781		—
Securities purchased under agreements to resell	—		—		—		—
LHFS(1)	866		—		866		—
LHI(2)	9,399,614		—		—		9,163,616
Accrued interest receivable	44,035		—		44,035		—
BOLI	84,496		—		84,496		—
Servicing asset	3,896		—		3,896		—
Equity securities without a readily determinable fair value	10,072		N/A		N/A		N/A
FHLB and FRB stock	101,568		N/A		N/A		N/A
Financial liabilities:
Deposits	$	9,123,234	$	—	$	8,341,419	$	—
Advances from FHLB	1,175,000		—		1,156,852		—
Accrued interest payable	8,795		—		8,795		—
Subordinated debentures and subordinated notes	228,775		—		228,775		—
Securities sold under agreement to repurchase	—		—		—		—

December 31, 2021
Financial assets:
Cash and cash equivalents	$	379,784	$	—	$	379,784	$	—
Held-to-maturity debt securities	59,436		—		61,446		—
Securities purchased under agreements to resell	102,288		—		102,288		—
LHFS(1)	16,140		—		16,140		—
LHI(2)	7,259,233		—		—		7,283,992
Accrued interest receivable	22,008		—		22,008		—
Bank-owned life insurance	83,194		—		83,194		—
Servicing asset	14,482		—		14,482		—
Equity securities without readily determinable fair value	4,355		N/A		N/A		N/A
FHLB and FRB stock	71,892		N/A		N/A		N/A
Financial liabilities:
Deposits	$	7,363,615	$	—	$	7,145,175	$	—
Advances from FHLB	777,562		—		796,480		—
Accrued interest payable	1,507		—		1,507		—
Subordinated debentures and subordinated notes	227,764		—		227,764		—
Securities sold under agreement to repurchase	4,069		—		4,026		—

(1) LHFS primarily represent commercial loans moved to held for sale or mortgage LHFS that are carried at lower of cost or market.

(2) LHI includes MW and is carried at amortized cost.

- Definition

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

+ References + Details

ADVANCES FROM FHLB (Tables)

12 Months Ended

Dec. 31, 2022

Advance from Federal Home Loan Bank [Abstract]

Schedule of Contractual Maturities of FHLB Advances

Contractual maturities of FHLB advances at December 31, 2022 were as follows:


2023	$	1,075,000
2024	100,000




Total	$	1,175,000

ADVANCES FROM FHLB

12 Months Ended

Dec. 31, 2022

Advance from Federal Home Loan Bank [Abstract]

ADVANCES FROM FHLB

Advances from the FHLB totaled $1,175,000 and $777,562 at December 31, 2022 and 2021, respectively. As of December 31, 2022, the advances were collateralized by a blanket floating lien on certain debt securities and loans, had a weighted average rate of 4.67% and mature on various dates from 2023 to 2024. The Company had the availability to borrow additional funds of approximately $787,324 as of December 31, 2022.

Contractual maturities of FHLB advances at December 31, 2022 were as follows:


2023	$	1,075,000
2024	100,000




Total	$	1,175,000

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Comprehensive Income [Abstract]
NET INCOME	$ 146,315	$ 139,584	$ 73,883
Net unrealized (losses) gains on debt securities AFS:
Change in net unrealized (losses) gains on debt securities AFS during the period, net	(131,005)	(23,596)	35,400
Amortization from transfer of debt securities from AFS to HTM	3,790	0	0
Reclassification adjustment for net losses (gains) included in net income	0	188	(2,623)
Net unrealized (losses) gains on securities AFS	(127,215)	(23,408)	32,777
Net unrealized (losses) gains on derivative instruments designated as cash flow hedges	(41,499)	33,338	14,657
Other comprehensive (loss) income, before tax	(168,714)	9,930	47,434
Income tax (benefit) expense	(35,241)	2,085	10,270
Other comprehensive (loss) income, net of tax	(133,473)	7,845	37,164
COMPREHENSIVE INCOME	$ 12,842	$ 147,429	$ 111,047

SECURITIES - Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Available For Sale Amortized Cost
Due from one year to five years	$ 53,692	$ 5,201
Due from five years to ten years	205,911	178,203
Due after ten years	58,462	131,092
Total investment securities available for sale, single maturity date	318,065	314,496
Amortized cost	1,195,694	961,455
Available For Sale Fair value
Due from one year to five years	54,179	5,241
Due from five years to ten years	190,406	186,972
Due after ten years	53,351	140,229
Total investment securities available for sale	297,936	332,442
Fair value	1,096,292	993,058
Held-to-Maturity Amortized Cost
Due from one year to five years	0	0
Due from five years to ten years	8,275	3,849
Due after ten years	105,382	24,330
Total investment securities held to maturity, single maturity date	113,657	28,179
Amortized cost	186,168	59,436
Held-to-Maturity Fair Value
Due from one year to five years	0	0
Due from five years to ten years	8,129	4,115
Due after ten years	90,778	25,977
Total investment securities held to maturity	98,907	30,092
Fair value	158,781	61,446
Mortgage-backed securities and collateralized mortgage obligations
Available For Sale Amortized Cost
Amortized cost	765,864	548,404
Amortized cost	156,408	124,230
Available For Sale Fair value
Fair value	692,617	561,131
Fair value	139,011	127,067
Held-to-Maturity Amortized Cost
Amortized cost	72,511	31,257
Amortized cost	36,342	25,767
Held-to-Maturity Fair Value
Fair value	59,874	31,354
Asset-backed securities
Available For Sale Amortized Cost
Amortized cost	42,015	53,466
Amortized cost	42,015	53,466
Available For Sale Fair value
Fair value	39,691	54,563
Fair value	39,691	54,563
Held-to-Maturity Amortized Cost
Amortized cost	0	0
Held-to-Maturity Fair Value
Fair value	0	0
Collateralized loan obligations
Available For Sale Amortized Cost
Amortized cost	69,750	45,089
Amortized cost	69,750	45,089
Available For Sale Fair value
Fair value	66,048	44,922
Fair value	66,048	44,922
Held-to-Maturity Amortized Cost
Amortized cost	0	0
Held-to-Maturity Fair Value
Fair value	$ 0	$ 0

SECURITIES - Unrealized Loss Position (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
AFS Fair Value
Less than 12 months	$ 868,558	$ 222,302
12 months or more	171,941	9,027
Totals	1,040,499	231,329
AFS Unrealized Loss
Less than 12 months	72,521	4,691
12 months or more	28,641	443
Totals	101,162	5,134
HTM Fair Value
Less than 12 months	111,760	28,797
12 months or more	42,944	0
Totals	154,704	28,797
HTM Unrealized Loss
Less than 12 months	16,172	610
12 months or more	11,221	0
Totals	27,393	610
Corporate bonds
AFS Fair Value
Less than 12 months	197,946	12,704
12 months or more	15,568	4,350
Totals	213,514	17,054
AFS Unrealized Loss
Less than 12 months	15,697	194
12 months or more	1,682	237
Totals	17,379	431
Municipal securities
AFS Fair Value
Less than 12 months	33,919	7,072
12 months or more	8,813	0
Totals	42,732	7,072
AFS Unrealized Loss
Less than 12 months	848	178
12 months or more	3,350	0
Totals	4,198	178
HTM Fair Value
Less than 12 months	85,671	4,583
12 months or more	9,161	0
Totals	94,832	4,583
HTM Unrealized Loss
Less than 12 months	11,411	102
12 months or more	3,345	0
Totals	14,756	102
Mortgage-backed securities
AFS Fair Value
Less than 12 months	115,467	40,276
12 months or more	22,780	4,677
Totals	138,247	44,953
AFS Unrealized Loss
Less than 12 months	11,104	1,283
12 months or more	6,317	206
Totals	17,421	1,489
HTM Fair Value
Less than 12 months	804	24,214
12 months or more	28,784	0
Totals	29,588	24,214
HTM Unrealized Loss
Less than 12 months	85	508
12 months or more	6,668	0
Totals	6,753	508
Collateralized mortgage obligations
AFS Fair Value
Less than 12 months	482,358	106,063
12 months or more	71,198	0
Totals	553,556	106,063
AFS Unrealized Loss
Less than 12 months	42,553	2,350
12 months or more	13,296	0
Totals	55,849	2,350
HTM Fair Value
Less than 12 months	25,285	0
12 months or more	4,999	0
Totals	30,284	0
HTM Unrealized Loss
Less than 12 months	4,676	0
12 months or more	1,208	0
Totals	5,884	0
Asset-backed securities
AFS Fair Value
Less than 12 months	15,195	11,265
12 months or more	11,207	0
Totals	26,402	11,265
AFS Unrealized Loss
Less than 12 months	991	519
12 months or more	1,621	0
Totals	2,612	519
Collateralized loan obligations
AFS Fair Value
Less than 12 months	23,673	44,922
12 months or more	42,375	0
Totals	66,048	44,922
AFS Unrealized Loss
Less than 12 months	1,328	167
12 months or more	2,375	0
Totals	$ 3,703	$ 167

FAIR VALUE DISCLOSURES - Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Assets:
AFS debt securities	$ 1,096,292	$ 993,058
Equity securities with a readily determinable fair value	9,792	11,038
PPP Loans	1,995	53,369
Derivative asset, fair value	36,878	9,181
Derivative liability, fair value	63,997	3,736
Derivatives designated as hedging instruments
Assets:
Derivative asset, fair value	26,523	7,001
Derivative liability, fair value	54,171	1,404
Derivatives designated as hedging instruments \| Interest rate swaps
Assets:
Derivative asset, fair value	21,234	4,541
Derivative liability, fair value	0	0
Derivatives not designated as hedging instruments
Assets:
Derivative asset, fair value	41,337	4,789
Derivative liability, fair value	40,808	4,941
Derivatives not designated as hedging instruments \| Interest rate swaps \| Financial institution counterparty
Assets:
Derivative asset, fair value	38,839	1,527
Derivative liability, fair value	1,126	3,498
Derivatives not designated as hedging instruments \| Interest rate swaps \| Commercial customer counterparty
Assets:
Derivative asset, fair value	1,004	3,261
Derivative liability, fair value	38,188	1,442
Derivatives not designated as hedging instruments \| Interest rate caps and collars \| Financial institution counterparty
Assets:
Derivative asset, fair value	1,494	0
Derivative liability, fair value	0	1
Derivatives not designated as hedging instruments \| Interest rate caps and collars \| Commercial customer counterparty
Assets:
Derivative asset, fair value	0	1
Derivative liability, fair value	1,494	0
Recurring
Assets:
AFS debt securities	1,096,292	993,058
Equity securities with a readily determinable fair value	9,792	11,038
PPP Loans	1,995	53,369
LHFS	19,775	9,867
Recurring \| Derivatives designated as hedging instruments \| Interest rate swaps
Assets:
Derivative asset, fair value	26,523	7,001
Derivative liability, fair value	54,171	1,404
Recurring \| Derivatives not designated as hedging instruments \| Interest rate swaps \| Financial institution counterparty
Assets:
Derivative asset, fair value	38,839	1,527
Derivative liability, fair value	1,126	3,498
Recurring \| Derivatives not designated as hedging instruments \| Interest rate swaps \| Commercial customer counterparty
Assets:
Derivative asset, fair value	1,004	3,261
Derivative liability, fair value	38,188	1,442
Recurring \| Derivatives not designated as hedging instruments \| Interest rate caps and collars \| Financial institution counterparty
Assets:
Derivative asset, fair value	1,494
Derivative liability, fair value		1
Recurring \| Derivatives not designated as hedging instruments \| Interest rate caps and collars \| Commercial customer counterparty
Assets:
Derivative asset, fair value		1
Derivative liability, fair value	1,494
Recurring \| Level 1
Assets:
AFS debt securities	0	0
Equity securities with a readily determinable fair value	9,792	11,038
PPP Loans	0	0
LHFS	0	0
Recurring \| Level 1 \| Derivatives designated as hedging instruments \| Interest rate swaps
Assets:
Derivative asset, fair value	0	0
Derivative liability, fair value	0	0
Recurring \| Level 1 \| Derivatives not designated as hedging instruments \| Interest rate swaps \| Financial institution counterparty
Assets:
Derivative asset, fair value	0	0
Derivative liability, fair value	0	0
Recurring \| Level 1 \| Derivatives not designated as hedging instruments \| Interest rate swaps \| Commercial customer counterparty
Assets:
Derivative asset, fair value	0	0
Derivative liability, fair value	0	0
Recurring \| Level 1 \| Derivatives not designated as hedging instruments \| Interest rate caps and collars \| Financial institution counterparty
Assets:
Derivative asset, fair value	0
Derivative liability, fair value		0
Recurring \| Level 1 \| Derivatives not designated as hedging instruments \| Interest rate caps and collars \| Commercial customer counterparty
Assets:
Derivative asset, fair value		0
Derivative liability, fair value	0
Recurring \| Level 2
Assets:
AFS debt securities	1,096,292	993,058
Equity securities with a readily determinable fair value	0	0
PPP Loans	0	53,369
LHFS	19,775	9,867
Recurring \| Level 2 \| Derivatives designated as hedging instruments \| Interest rate swaps
Assets:
Derivative asset, fair value	26,523	7,001
Derivative liability, fair value	54,171	1,404
Recurring \| Level 2 \| Derivatives not designated as hedging instruments \| Interest rate swaps \| Financial institution counterparty
Assets:
Derivative asset, fair value	38,839	1,527
Derivative liability, fair value	1,126	3,498
Recurring \| Level 2 \| Derivatives not designated as hedging instruments \| Interest rate swaps \| Commercial customer counterparty
Assets:
Derivative asset, fair value	1,004	3,261
Derivative liability, fair value	38,188	1,442
Recurring \| Level 2 \| Derivatives not designated as hedging instruments \| Interest rate caps and collars \| Financial institution counterparty
Assets:
Derivative asset, fair value	1,494
Derivative liability, fair value		1
Recurring \| Level 2 \| Derivatives not designated as hedging instruments \| Interest rate caps and collars \| Commercial customer counterparty
Assets:
Derivative asset, fair value		1
Derivative liability, fair value	1,494
Recurring \| Level 3
Assets:
AFS debt securities	0	0
Equity securities with a readily determinable fair value	0	0
PPP Loans	1,995	0
LHFS	0	0
Recurring \| Level 3 \| Derivatives designated as hedging instruments \| Interest rate swaps
Assets:
Derivative asset, fair value	0	0
Derivative liability, fair value	0	0
Recurring \| Level 3 \| Derivatives not designated as hedging instruments \| Interest rate swaps \| Financial institution counterparty
Assets:
Derivative asset, fair value	0	0
Derivative liability, fair value	0	0
Recurring \| Level 3 \| Derivatives not designated as hedging instruments \| Interest rate swaps \| Commercial customer counterparty
Assets:
Derivative asset, fair value	0	0
Derivative liability, fair value	0	0
Recurring \| Level 3 \| Derivatives not designated as hedging instruments \| Interest rate caps and collars \| Financial institution counterparty
Assets:
Derivative asset, fair value	0
Derivative liability, fair value		0
Recurring \| Level 3 \| Derivatives not designated as hedging instruments \| Interest rate caps and collars \| Commercial customer counterparty
Assets:
Derivative asset, fair value		$ 0
Derivative liability, fair value	$ 0

SUBORDINATED DEBENTURES AND SUBORDINATED NOTES

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

SUBORDINATED DEBENTURES AND SUBORDINATED NOTES

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


	December 31,
	2022		2021
Junior subordinated debentures (1)	$	30,686	$	30,465
Subordinated notes (2)	198,089		197,299
	$	228,775	$	227,764

(1) Junior subordinated debentures are net of a discount of $3,182 and $3,403 as of December 31, 2022 and 2021, respectively.

(2) Subordinated notes include a debt issuance costs of $1,911 and $2,701 as of December 31, 2022 and 2021, respectively.

Junior Subordinated Debentures

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

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

The Parkway Trust Securities pay cumulative cash distributions quarterly at a rate per annum equal to the 3-month LIBOR plus 1.85%. So long as no event of default leading to an acceleration event has occurred, the Company has the right at any time and from time to time during the term of the debentures to defer payments of interest by extending the interest distribution period for up to twenty consecutive quarterly periods. The effective rate as of December 31, 2022 and 2021 was 6.62% and 2.05%, respectively. The Parkway Trust Securities are subject to mandatory redemption, in whole or in part, upon repayment of the debentures at the stated maturity in the year 2036 or their earlier redemption, in each case at a redemption price equal to the aggregate liquidation preference of the Parkway Trust Securities plus any accumulated and unpaid distributions thereon to the date of redemption. Prior redemption is permitted under certain circumstances.

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

The SovDallas Trust invested the total proceeds from the sale of the SovDallas Trust Securities and the investment in common shares in floating rate junior subordinated debentures originally issued by Sovereign. Interest on the SovDallas Trust Securities is payable quarterly at a rate equal to 3-month LIBOR plus 4.00%. Principal payments are due at maturity in July 2038. The effective rate as of December 31, 2022 and 2021 was 7.74% and 4.13%. The SovDallas Trust Securities are guaranteed by the Company and are subject to redemption. The Company may redeem the debt securities, in whole or in part, at any time at an amount equal to the principal amount of the debt securities being redeemed plus any accrued and unpaid interest.

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

The Patriot I Trust invested the total proceeds from the sale of the Patriot I Trust Securities and the investment in common shares in floating rate junior subordinated debentures originally issued by Green. Interest on the Patriot I Trust Securities is payable quarterly at a rate equal to 3-month LIBOR plus 1.85%. Principal payments are due at maturity in April 2036. The effective rate as of December 31, 2022 and 2021 was 5.93% and 1.97%. The Patriot I Trust Securities are guaranteed by the Company and are subject to redemption. The Company may redeem the debt securities, in whole or in part, at any time at an amount equal to the principal amount of the debt securities being redeemed plus any accrued and unpaid interest.

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

The Patriot II Trust invested the total proceeds from the sale of the Patriot II Trust Securities and the investment in common shares in floating rate junior subordinated debentures originally issued by Sovereign. Interest on the Patriot II Trust Securities is payable quarterly at a rate equal to 3-month LIBOR plus 1.80%. Principal payments are due at maturity in September 2037. The effective rate as of December 31, 2022 and 2021 was 6.57% and 2.00%. The Patriot II Trust Securities are guaranteed by the Company and are subject to redemption. The Company may redeem the debt securities, in whole or in part, at any time at an amount equal to the principal amount of the debt securities being redeemed plus any accrued and unpaid interest.

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

Subordinated Notes

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

On October 5, 2020, the Company completed the issuance and sale of $125,000 in aggregate principal amount of its 4.125% Fixed-to-Floating Rate Subordinated Debt due in 2030 (the “2020 Notes”). The 2020 Notes will bear interest: (i) from and including the date of issuance to, but excluding, October 15, 2025, at a rate of 4.125% per year and (ii) from and including October 15, 2025 to, but excluding, the maturity date (unless redeemed prior to such date), at a floating rate per year equal to the Benchmark (which is expected to be Three-Month Term Secured Overnight Funding Rate) plus 399.5 basis points. The Company has the right, subject to certain circumstances and the receipt of any required approval of the Federal Reserve Board, to redeem the 2020 Notes at the Company’s option, in whole or in part, on any interest payment date on or after October 15, 2025.The Company intends to use the net proceeds from the offering of 2020 Notes for general corporate purposes, including the potential repayment of outstanding indebtedness, and supporting capital levels of the Bank.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI https://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 1I
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (g)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

DEPOSITS (Tables)

12 Months Ended

Dec. 31, 2022

Statistical Disclosure for Banks [Abstract]

Schedule Summarized of the Deposits

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


	December 31,
	2022		2021
Noninterest-bearing demand accounts	$	2,640,617	$	2,510,723
Interest-bearing demand accounts	622,814		579,408
Savings accounts	118,293		128,061
Limited access money market accounts	3,654,868		2,568,843
Certificates of deposit, greater than $250	853,659		651,345
Certificates of deposit, less than $250	1,232,983		925,235
Total	$	9,123,234	$	7,363,615

Scheduled Maturities of Certificate of Deposits

As of December 31, 2022, the scheduled maturities of certificates of deposit were as follows:


Year	Amount
2023	$	1,954,852
2024	102,339
2025	19,391
2026	6,396
2027	3,664

Total	$	2,086,642

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Earnings (numerator)
Net income	$ 146,315	$ 139,584	$ 73,883
Shares (denominator)
Weighted average shares outstanding for basic EPS (in shares)	53,170,000	49,405,000	49,883,000
Dilutive effect of employee stock-based awards (in shares)	782,000	947,000	153,000
Adjusted weighted average shares outstanding (in shares)	53,952,000	50,352,000	50,036,000
EPS:
Basic (in dollars per share)	$ 2.75	$ 2.83	$ 1.48
Diluted (in dollars per share)	$ 2.71	$ 2.77	$ 1.48
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Excluded from diluted EPS weighted average shares (in shares)	177,000	29	1,481
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Excluded from diluted EPS weighted average shares (in shares)	177,000		1,137
Employee Stock Option
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Excluded from diluted EPS weighted average shares (in shares)	0		344

CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS

12 Months Ended

Dec. 31, 2022

Regulatory Capital Requirements under Banking Regulations [Abstract]

CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS

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

The Company on a consolidated basis and the Bank are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements triggers certain mandatory actions and may lead to additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action (“PCA”), the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and PCA classification are also subject to qualitative judgments by the regulators about components of capital, risk weightings of assets, and other factors. In addition, an institution may be downgraded to, or deemed to be in, a capital category that is lower than indicated by its capital ratios, if it is determined to be in an unsafe or unsound condition or if it receives an unsatisfactory examination rating with respect to certain matters.

Under the Economic Growth, Regulatory Relief and Consumer Protection Act of 2018 and implementing regulations of the federal banking agencies, certain banking organizations with less than $10 billion in total consolidated assets may elect to satisfy a single Community Bank Leverage Ratio (“CBLR”) of Tier 1 capital to average total consolidated assets in lieu of the generally applicable capital requirements of the capital rules implementing Basel III. Banks meeting all of the requirements under this framework are not required to report or calculate risk-based capital, and will be considered to have met the well-capitalized ratio requirements under PCA regulations. The Bank was eligible and elected to use the CBLR framework as of December 31, 2020; however, the Bank was no longer eligible to use the CBLR framework beginning as of June 30, 2021.

As a result of our no longer using the CBLR framework, we are subject to various quantitative measures established by regulation to ensure capital adequacy. These generally applicable capital requirements require a banking organization that does not operate under the CBLR framework to maintain minimum amounts and ratios (set forth in the table below) of total capital, Tier 1 capital, and common equity Tier 1 capital to risk-weighted assets, and of Tier 1 capital to average assets. The capital rules implementing Basel III also include a “capital conservation buffer” of 2.5% on top of each of the minimum risk-based capital ratios, and a banking organization with any risk-based capital ratio that meets or exceeds the minimum requirement but does not meet the capital conservation buffer will face constraints on dividends, equity repurchases and discretionary bonus payments based on the amount of the shortfall. Additionally, to be categorized as “well capitalized,” a bank that does not operate under the CBLR framework is required to maintain minimum total risk-based common equity Tier 1, Tier 1, and total capital ratios and Tier 1 leverage ratios as set forth in the table below.

As of December 31, 2022 and December 31, 2021, the Company’s and the Bank’s capital ratios exceeded those levels necessary to be categorized as “well capitalized.” There are no conditions or events since December 31, 2022 that management believes have changed the Company’s category.

In the first quarter of 2020, U.S. federal regulatory authorities issued an interim final rule that provides banking organizations that adopt CECL during the 2020 calendar year with the option to delay for two years the estimated impact of CECL on regulatory capital relative to regulatory capital determined under the prior incurred loss methodology, followed by a three-year transition period to phase out the aggregate amount of the capital benefit provided during the initial two-year delay (i.e., a five-year transition in total). In connection with our adoption of CECL on January 1, 2020, the Company elected to utilize the five-year CECL transition. As a result, the effects of CECL on the Company’s and the Bank’s regulatory capital was delayed through the year 2021, with the effects phased-in over a three-year period from January 1, 2022 through December 31, 2024.

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


	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
As of December 31, 2022
Total capital (to risk-weighted assets "RWA")
Company	$	1,395,904	11.63	%	$	960,209	8.0	%	n/a		n/a
Bank	1,368,082		11.41		959,216		8.0		$	1,199,020	10.0	%
Tier 1 capital (to RWA)
Company	1,121,021		9.34		720,142		6.0		n/a		n/a
Bank	1,291,288		10.77		719,381		6.0		959,174		8.0
Common equity tier 1 (to RWA)
Company	1,091,353		9.09		540,274		4.5		n/a		n/a
Bank	1,291,288		10.77		539,535		4.5		779,329		6.5
Tier 1 capital (to average assets)
Company	1,121,021		9.82		456,628		4.0		n/a		n/a
Bank	1,291,288		11.32		456,286		4.0		570,357		5.0
As of December 31, 2021
Total capital (to RWA)
Company	$	1,100,404	11.60	%	$	758,899	8.0	%	n/a		n/a
Bank	1,053,871		11.11		758,863		8.0		$	948,579	10.0	%
Tier 1 capital (to RWA)
Company	843,585		8.89		569,349		6.0		n/a		n/a
Bank	994,351		10.48		569,285		6.0		759,047		8.0
Common equity tier 1 (to RWA)
Company	814,138		8.58		426,995		4.5		n/a		n/a
Bank	994,351		10.48		426,964		4.5		616,725		6.5
Tier 1 capital (to average assets)
Company	843,585		9.05		372,855		4.0		n/a		n/a
Bank	994,351		10.69		372,068		4.0		465,085		5.0

Dividend Restrictions

Dividends paid by the Bank are subject to certain restrictions imposed by regulatory agencies. Capital requirements further limit the amount of dividends that may be paid by the Bank. Dividends of $35,000 and $8,440 were paid by the Bank to the Holdco during the years ended December 31, 2022 and 2021, respectively.

Dividends of $42,289, or $0.20 per outstanding share on the applicable record date, were paid by the Company during the year ended December 31, 2022. Dividends of $36,543, or $0.20 per outstanding share on the applicable record date, were paid by the Company during the year ended December 31, 2021.

The Bank is subject to limitations on dividend payouts if, among other things, it does not have a capital conservation buffer of 2.5% or more. The Bank had a capital conservation buffer of 3.34% as of December 31, 2022.

- Definition

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

+ References + Details

FAIR VALUE DISCLOSURES - Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Financial assets:
Held-to-maturity debt securities	$ 158,781	$ 61,446
Securities purchased under agreement to resell	0	102,288
Equity securities without a readily determinable fair value	10,072	4,355
FHLB and FRB stock	101,568	71,892
Financial liabilities:
Subordinated debentures and subordinated notes	228,775	227,764
Securities sold under agreement to repurchase	0	4,069
Carrying Amount
Financial assets:
Cash and cash equivalents	436,077	379,784
Held-to-maturity debt securities	186,168	59,436
Securities purchased under agreement to resell	0	102,288
LHFS	866	16,140
Accrued interest receivable	44,035	22,008
BOLI	84,496	83,194
Servicing asset	3,896	14,482
Equity securities without a readily determinable fair value	10,072	4,355
FHLB and FRB stock	101,568	71,892
Financial liabilities:
Deposits	9,123,234	7,363,615
Advances from FHLB	1,175,000	777,562
Accrued interest payable	8,795	1,507
Subordinated debentures and subordinated notes	228,775	227,764
Securities sold under agreement to repurchase	0	4,069
Level 1 \| Total Fair Value
Financial assets:
Cash and cash equivalents	0	0
Held-to-maturity debt securities	0	0
Securities purchased under agreement to resell	0	0
LHFS	0	0
Accrued interest receivable	0	0
BOLI	0	0
Servicing asset	0	0
Financial liabilities:
Deposits	0	0
Advances from FHLB	0	0
Accrued interest payable	0	0
Subordinated debentures and subordinated notes	0	0
Securities sold under agreement to repurchase	0	0
Level 2 \| Total Fair Value
Financial assets:
Cash and cash equivalents	436,077	379,784
Held-to-maturity debt securities	158,781	61,446
Securities purchased under agreement to resell	0	102,288
LHFS	866	16,140
Accrued interest receivable	44,035	22,008
BOLI	84,496	83,194
Servicing asset	3,896	14,482
Financial liabilities:
Deposits	8,341,419	7,145,175
Advances from FHLB	1,156,852	796,480
Accrued interest payable	8,795	1,507
Subordinated debentures and subordinated notes	228,775	227,764
Securities sold under agreement to repurchase	0	4,026
Level 3 \| Total Fair Value
Financial assets:
Cash and cash equivalents	0	0
Held-to-maturity debt securities	0	0
Securities purchased under agreement to resell	0	0
LHFS	0	0
Accrued interest receivable	0	0
BOLI	0	0
Servicing asset	0	0
Financial liabilities:
Deposits	0	0
Advances from FHLB	0	0
Accrued interest payable	0	0
Subordinated debentures and subordinated notes	0	0
Securities sold under agreement to repurchase	0	0
Real Estate, Commercial and Consumer Portfolio Segments \| Carrying Amount
Financial assets:
LHI	9,399,614	7,259,233
Real Estate, Commercial and Consumer Portfolio Segments \| Level 1 \| Total Fair Value
Financial assets:
LHI	0	0
Real Estate, Commercial and Consumer Portfolio Segments \| Level 2 \| Total Fair Value
Financial assets:
LHI	0	0
Real Estate, Commercial and Consumer Portfolio Segments \| Level 3 \| Total Fair Value
Financial assets:
LHI	$ 9,163,616	$ 7,283,992

CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) $ / shares	Dec. 31, 2021 USD ($) $ / shares	Dec. 31, 2020 USD ($)
Total capital (to risk-weighted assets "RWA")
Actual amount	$ 1,395,904	$ 1,100,404
Actual ratio (as a percent)	0.1163	0.1160
For capital adequacy purposes amount	$ 960,209	$ 758,899
For capital adequacy purposes ratio (as a percent)	0.080	0.080
Tier 1 capital (to RWA)
Actual amount	$ 1,121,021	$ 843,585
Actual ratio (as a percent)	0.0934	0.0889
For capital adequacy purposes amount	$ 720,142	$ 569,349
For capital adequacy purposes ratio (as a percent)	0.060	0.060
Common equity tier 1 (to RWA)
Common equity tier one capital	$ 1,091,353	$ 814,138
Common equity tier one capital ratio (as a percent)	0.0909	0.0858
Common equity tier one capital required for capital adequacy	$ 540,274	$ 426,995
For capital adequacy purposes amount (as a percent)	0.045	0.045
Tier 1 capital (to average assets)
Actual amount	$ 1,121,021	$ 843,585
Actual ratio (as a percent)	0.0982	0.0905
For capital adequacy purposes amount	$ 456,628	$ 372,855
For capital adequacy purposes ratio (as a percent)	0.040	0.040
Dividends paid	$ 42,289	$ 36,543	$ 34,057
Bank's capital conservation buffer	0.0334
Bank
Total capital (to risk-weighted assets "RWA")
Actual amount	$ 1,368,082	$ 1,053,871
Actual ratio (as a percent)	0.1141	0.1111
For capital adequacy purposes amount	$ 959,216	$ 758,863
For capital adequacy purposes ratio (as a percent)	0.080	0.080
To be well capitalized under prompt corrective action provisions amount	$ 1,199,020	$ 948,579
To be well capitalized under prompt corrective action provisions ratio (as a percent)	0.100	0.100
Tier 1 capital (to RWA)
Actual amount	$ 1,291,288	$ 994,351
Actual ratio (as a percent)	0.1077	0.1048
For capital adequacy purposes amount	$ 719,381	$ 569,285
For capital adequacy purposes ratio (as a percent)	0.060	0.060
To be well capitalized under prompt corrective action provisions amount	$ 959,174	$ 759,047
To be well capitalized under prompt corrective action provisions ratio (as a percent)	0.080	0.080
Common equity tier 1 (to RWA)
Common equity tier one capital	$ 1,291,288	$ 994,351
Common equity tier one capital ratio (as a percent)	0.1077	0.1048
Common equity tier one capital required for capital adequacy	$ 539,535	$ 426,964
For capital adequacy purposes amount (as a percent)	0.045	0.045
Common equity tier one capital required to be well-capitalized	$ 779,329	$ 616,725
To be well capitalized under prompt corrective action provisions ratio (as a percent)	0.065	0.065
Tier 1 capital (to average assets)
Actual amount	$ 1,291,288	$ 994,351
Actual ratio (as a percent)	0.1132	0.1069
For capital adequacy purposes amount	$ 456,286	$ 372,068
For capital adequacy purposes ratio (as a percent)	0.040	0.040
To be well capitalized under prompt corrective action provisions amount	$ 570,357	$ 465,085
To be well capitalized under prompt corrective action provisions ratio (as a percent)	0.050	0.050
Dividends paid to Holdco	$ 35,000	$ 8,440
Veritex Holdings, Inc.
Tier 1 capital (to average assets)
Dividends paid	$ 42,289	$ 36,543
Dividends paid (in dollars per share) \| $ / shares	$ 0.20	$ 0.20

DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($)		12 Months Ended
	Feb. 24, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Oct. 31, 2022	Aug. 31, 2022	Mar. 31, 2021	Mar. 31, 2020
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount		$ 2,922,362,000	$ 1,468,406,000
Pre-tax gain from termination of derivative		0	(43,900,000)	$ 0
Derivatives designated as hedging instruments
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount		1,175,000,000	625,000,000
Derivatives designated as hedging instruments \| Interest rate floor
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount		100,000,000	0		$ 100,000
Derivatives designated as hedging instruments \| Interest rate collar
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount		450,000,000	0		$ 100,000	$ 350,000
Derivatives designated as hedging instruments \| Interest rate swaps
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount		$ 250,000,000	$ 250,000,000				$ 125,000
Pre-tax gain from termination of derivative	$ 43,900,000
Accretion period (in years)		10 years
Accretion into income		$ 3,569,000
Derivatives designated as hedging instruments \| Forecasted Issuances of Three-month Term Debt
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount								$ 500,000
Derivatives designated as hedging instruments \| Forecasted Money Market Account Borrowings
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount								$ 250,000

STOCK AND INCENTIVE PLANS - Veritex (Green) 2014 Plan RSU and PSU (Details) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Veritex (Green) 2014 Plan \| RSUs
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Nonvested at the beginning of the period (in shares)	122,784	156,187	116,250
Number of shares awarded (in shares)	4,231	5,692	93,918
Vested into shares (in shares)	(32,931)	(33,335)	(38,744)
Forfeited (in shares)	(7,851)	(5,760)	(15,237)
Nonvested at the end of the period (in shares)	86,233	122,784	156,187
Weighted Average Grant Date Fair Value
Nonvested at the beginning of the period (in dollars per share)	$ 21.13	$ 22.64	$ 21.38
Granted (in dollars per share)	40.38	26.12	21.36
Vested into shares (in dollars per share)	21.80	21.38	21.38
Forfeited (in dollars per share)	29.13	25.21	23.62
Nonvested at the end of the period (in dollars per share)	$ 21.09	$ 21.13	$ 22.64
Veritex (Green) 2014 Plan \| PSUs
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Nonvested at the beginning of the period (in shares)	35,899	30,728	25,320
Number of shares awarded (in shares)	4,411	6,231	8,531
Incremental PSUs granted upon performance condition met (in shares)	10,566
Vested into shares (in shares)	(31,703)
Forfeited (in shares)		(1,060)	(3,123)
Nonvested at the end of the period (in shares)	19,173	35,899	30,728
Weighted Average Grant Date Fair Value
Nonvested at the beginning of the period (in dollars per share)	$ 22.26	$ 21.43	$ 21.38
Granted (in dollars per share)	40.38	25.94	25.94
Incremental PSUs granted upon performance condition met (in dollars per share)	19.69
Vested into shares (in dollars per share)	21.38
Forfeited (in dollars per share)		19.69	19.69
Nonvested at the end of the period (in dollars per share)	$ 30.74	$ 22.26	$ 21.43
2022 Equity Plan \| RSUs
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Nonvested at the beginning of the period (in shares)	598,051	441,132	175,688
Number of shares awarded (in shares)	546,405	281,149	360,400
Vested into shares (in shares)	(175,159)	(108,732)	(93,377)
Forfeited (in shares)	(14,193)	(15,498)	(1,579)
Nonvested at the end of the period (in shares)	955,104	598,051	441,132
Weighted Average Grant Date Fair Value
Nonvested at the beginning of the period (in dollars per share)	$ 23.39	$ 20.39	$ 21.65
Granted (in dollars per share)	33.79	28.68	20.38
Vested into shares (in dollars per share)	27.88	24.19	24.73
Forfeited (in dollars per share)	33.18	28.47	29.13
Nonvested at the end of the period (in dollars per share)	$ 28.38	$ 23.39	$ 20.39
2022 Equity Plan \| PSUs
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Nonvested at the beginning of the period (in shares)	156,471	100,195	63,727
Number of shares awarded (in shares)	39,429	56,276	39,398
Incremental PSUs granted upon performance condition met (in shares)	34,194
Vested into shares (in shares)	(103,387)		(1,841)
Forfeited (in shares)			(1,089)
Nonvested at the end of the period (in shares)	126,707	156,471	100,195
Weighted Average Grant Date Fair Value
Nonvested at the beginning of the period (in dollars per share)	$ 24.17	$ 23.20	$ 22.76
Granted (in dollars per share)	40.38	25.94	25.94
Incremental PSUs granted upon performance condition met (in dollars per share)	23.90
Vested into shares (in dollars per share)	22.79		19.69
Forfeited (in dollars per share)			19.69
Nonvested at the end of the period (in dollars per share)	$ 31.19	$ 24.17	$ 23.20

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The following table illustrates the impact of ASC 326.


	January 1, 2020
	As Reported Under ASC 326		Pre-ASC 326 Adoption		Impact of ASC 326 Adoption
Assets:
ACL on debt securities HTM	$	—	$	—	$	—
ACL on loans
Construction and land	3,760		3,822		(62)
Farmland	65		61		4
1 - 4 family residential	6,002		1,378		4,624
Multi-family residential	2,593		1,965		628
Owner Occupied Commercial Real Estate ("OOCRE")	13,066		1,978		11,088
Non-Owner Occupied Commercial Real Estate ("NOOCRE")	15,314		8,139		7,175
Commercial	27,729		12,369		15,360
Consumer	442		122		320
ACL on loans	$	68,971	$	29,834	$	39,137

Liabilities:
ACL on OBS credit exposures	$	1,718	$	878	$	840

Schedule of Estimated Lives of the Respective Assets

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


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

Schedule of Intangible Assets

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


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

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


	December 31, 2022
	Remaining
	Weighted	Gross						Net
	Amortization	Intangible		Valuation		Accumulated		Intangible
	Period	Asset		Allowance		Amortization		Asset
Core deposit intangibles	4.0 years	$	81,769	$	—	$	43,523	$	38,246
Servicing asset	7.4 years	24,760		2,451		7,429		14,880
Intangible lease assets	0.3 years	4,779		—		4,692		87
		$	111,308	$	2,451	$	55,644	$	53,213


	December 31, 2021
	Remaining
	Weighted	Gross						Net
	Amortization	Intangible		Valuation		Accumulated		Intangible
	Period	Asset		Allowance		Amortization		Asset
Core deposit intangibles	5.0 years	$	81,769	$	—	$	33,771	$	47,998
Servicing asset	7.2 years	22,090		627		3,758		17,705
Intangible lease assets	1.3 years	4,779		—		4,465		314
		$	108,638	$	627	$	41,994	$	66,017

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

The table below sets forth the reconciliation between weighted average shares used for calculating basic and diluted EPS for the years ended December 31, 2022, 2021 and 2020.


	Year Ended December 31,
	2022		2021		2020
Earnings (numerator)


Net income	$	146,315	$	139,584	$	73,883
Shares (denominator)
Weighted average shares outstanding for basic EPS (thousands)	53,170		49,405		49,883
Dilutive effect of employee stock-based awards	782		947		153
Adjusted weighted average shares outstanding	$	53,952	$	50,352	$	50,036
EPS:
Basic	$	2.75	$	2.83	$	1.48
Diluted	$	2.71	$	2.77	$	1.48

LHI AND ACL - Credit Quality Indicators (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Credit Quality Indicators
Year one	$ 1,993,914	$ 1,867,749
Year two	1,792,050	1,253,303
Year three	1,015,704	673,838
Year four	431,810	794,157
Year five	479,768	235,569
Prior	935,168	868,776
Revolving Loans Amortized Cost Basis	2,849,209	1,587,758
Revolving Loans Converted to Term	2,006	59,993
Total	9,499,629	7,341,143
Deferred loan fees, net	(18,973)	(9,489)
Pass
Credit Quality Indicators
Year one	1,976,020	1,841,709
Year two	1,766,159	1,241,076
Year three	983,772	662,869
Year four	398,380	647,461
Year five	391,505	202,918
Prior	786,325	708,994
Revolving Loans Amortized Cost Basis	2,677,207	1,561,600
Revolving Loans Converted to Term	1,884	52,573
Total	8,981,252	6,919,200
Special mention
Credit Quality Indicators
Year one	0	10,378
Year two	21,649	4,547
Year three	26,743	2,886
Year four	25,971	66,204
Year five	19,659	17,488
Prior	55,504	58,918
Revolving Loans Amortized Cost Basis	142,141	3,482
Revolving Loans Converted to Term	45	3,078
Total	291,712	166,981
Substandard
Credit Quality Indicators
Year one	17,894	15,662
Year two	4,242	6,303
Year three	5,189	8,083
Year four	7,459	66,557
Year five	55,634	6,787
Prior	67,296	66,459
Revolving Loans Amortized Cost Basis	29,861	22,676
Revolving Loans Converted to Term	77	4,342
Total	187,652	196,869
PCD
Credit Quality Indicators
Year one	0	0
Year two	0	1,377
Year three	0	0
Year four	0	13,935
Year five	12,970	8,376
Prior	26,043	34,405
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	39,013	58,093
Commercial
Credit Quality Indicators
Year one	490,978	453,833
Year two	137,120	195,554
Year three	93,737	131,233
Year four	92,734	95,545
Year five	58,642	47,275
Prior	39,699	65,164
Revolving Loans Amortized Cost Basis	2,026,813	992,211
Revolving Loans Converted to Term	630	26,061
Total	2,940,353	2,006,876
Commercial \| Pass
Credit Quality Indicators
Year one	473,084	430,213
Year two	132,396	187,370
Year three	88,548	124,798
Year four	83,996	65,186
Year five	40,030	40,254
Prior	31,269	52,491
Revolving Loans Amortized Cost Basis	1,906,074	968,229
Revolving Loans Converted to Term	553	19,130
Total	2,755,950	1,887,671
Commercial \| Special mention
Credit Quality Indicators
Year one	0	7,958
Year two	666	2,341
Year three	0	149
Year four	4,543	15,136
Year five	7,385	1,069
Prior	270	3,368
Revolving Loans Amortized Cost Basis	114,447	3,482
Revolving Loans Converted to Term	0	2,589
Total	127,311	36,092
Commercial \| Substandard
Credit Quality Indicators
Year one	17,894	15,662
Year two	4,058	5,843
Year three	5,189	6,286
Year four	4,195	14,908
Year five	10,954	4,167
Prior	4,732	2,779
Revolving Loans Amortized Cost Basis	6,292	20,500
Revolving Loans Converted to Term	77	4,342
Total	53,391	74,487
Commercial \| PCD
Credit Quality Indicators
Year one	0	0
Year two	0	0
Year three	0	0
Year four	0	315
Year five	273	1,785
Prior	3,428	6,526
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	3,701	8,626
Mortgage warehouse
Credit Quality Indicators
Year one	0	0
Year two	0	0
Year three	0	0
Year four	0	0
Year five	46	0
Prior	162	0
Revolving Loans Amortized Cost Basis	446,019	565,395
Revolving Loans Converted to Term	0	250
Total	446,227	565,645
Mortgage warehouse \| Pass
Credit Quality Indicators
Year one	0	0
Year two	0	0
Year three	0	0
Year four	0	0
Year five	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	444,393	564,850
Revolving Loans Converted to Term	0	250
Total	444,393	565,100
Mortgage warehouse \| Special mention
Credit Quality Indicators
Year one	0
Year two	0
Year three	0
Year four	0
Year five	0
Prior	0
Revolving Loans Amortized Cost Basis	1,626
Revolving Loans Converted to Term	0
Total	1,626
Mortgage warehouse \| Substandard
Credit Quality Indicators
Year one	0	0
Year two	0	0
Year three	0	0
Year four	0	0
Year five	46	0
Prior	162	0
Revolving Loans Amortized Cost Basis	0	545
Revolving Loans Converted to Term	0	0
Total	208	545
Consumer
Credit Quality Indicators
Year one	1,965	3,362
Year two	452	1,566
Year three	872	534
Year four	216	408
Year five	135	3,043
Prior	2,548	990
Revolving Loans Amortized Cost Basis	1,618	2,070
Revolving Loans Converted to Term	0	25
Total	7,806	11,998
Consumer \| Pass
Credit Quality Indicators
Year one	1,965	3,362
Year two	452	1,566
Year three	872	512
Year four	216	408
Year five	135	2,777
Prior	2,298	784
Revolving Loans Amortized Cost Basis	1,618	1,006
Revolving Loans Converted to Term	0	25
Total	7,556	10,440
Consumer \| Special mention
Credit Quality Indicators
Year one	0	0
Year two	0	0
Year three	0	0
Year four	0	0
Year five	0	65
Prior	58	14
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	58	79
Consumer \| Substandard
Credit Quality Indicators
Year one	0	0
Year two	0	0
Year three	0	22
Year four	0	0
Year five	0	177
Prior	169	39
Revolving Loans Amortized Cost Basis	0	1,064
Revolving Loans Converted to Term	0	0
Total	169	1,302
Consumer \| PCD
Credit Quality Indicators
Year one	0	0
Year two	0	0
Year three	0	0
Year four	0	0
Year five	0	24
Prior	23	153
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	23	177
Construction and Land \| Real Estate
Credit Quality Indicators
Year one	347,855	389,420
Year two	727,870	454,855
Year three	380,789	116,855
Year four	69,241	57,949
Year five	30,673	5,741
Prior	15,569	31,530
Revolving Loans Amortized Cost Basis	215,263	4,631
Revolving Loans Converted to Term	140	1,163
Total	1,787,400	1,062,144
Construction and Land \| Real Estate \| Pass
Credit Quality Indicators
Year one	347,855	389,420
Year two	709,208	453,262
Year three	378,229	116,855
Year four	69,241	57,637
Year five	30,673	5,741
Prior	14,025	29,182
Revolving Loans Amortized Cost Basis	215,263	4,631
Revolving Loans Converted to Term	140	1,163
Total	1,764,634	1,057,891
Construction and Land \| Real Estate \| Special mention
Credit Quality Indicators
Year one	0	0
Year two	18,662	1,593
Year three	2,560	0
Year four	0	312
Year five	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	21,222	1,905
Construction and Land \| Real Estate \| PCD
Credit Quality Indicators
Year one	0	0
Year two	0	0
Year three	0	0
Year four	0	0
Year five	0	0
Prior	1,544	2,348
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	1,544	2,348
Farmland \| Real Estate
Credit Quality Indicators
Year one	2,546	16,849
Year two	16,242	28,655
Year three	18,530	27
Year four	21	3,367
Year five	0	2,957
Prior	5,069	2,643
Revolving Loans Amortized Cost Basis	1,092	1,329
Revolving Loans Converted to Term	0	0
Total	43,500	55,827
Farmland \| Real Estate \| Pass
Credit Quality Indicators
Year one	2,546	16,849
Year two	16,242	28,655
Year three	18,530	27
Year four	21	3,367
Year five	0	2,957
Prior	5,069	2,643
Revolving Loans Amortized Cost Basis	1,092	1,329
Revolving Loans Converted to Term	0	0
Total	43,500	55,827
Residential Real Estate \| Single Family \| Real Estate
Credit Quality Indicators
Year one	135,006	191,333
Year two	188,819	101,377
Year three	87,861	54,826
Year four	43,293	59,861
Year five	41,960	27,824
Prior	260,254	88,094
Revolving Loans Amortized Cost Basis	136,537	13,226
Revolving Loans Converted to Term	726	6,025
Total	894,456	542,566
Residential Real Estate \| Single Family \| Real Estate \| Pass
Credit Quality Indicators
Year one	135,006	191,333
Year two	188,635	101,377
Year three	87,861	54,826
Year four	43,293	59,861
Year five	41,960	27,743
Prior	257,768	85,661
Revolving Loans Amortized Cost Basis	86,900	12,659
Revolving Loans Converted to Term	726	6,025
Total	842,149	539,485
Residential Real Estate \| Single Family \| Real Estate \| Special mention
Credit Quality Indicators
Year one	0	0
Year two	0	0
Year three	0	0
Year four	0	0
Year five	0	0
Prior	278	352
Revolving Loans Amortized Cost Basis	26,068	0
Revolving Loans Converted to Term	0	0
Total	26,346	352
Residential Real Estate \| Single Family \| Real Estate \| Substandard
Credit Quality Indicators
Year one	0	0
Year two	184	0
Year three	0	0
Year four	0	0
Year five		81
Prior	1,028	903
Revolving Loans Amortized Cost Basis	23,569	567
Revolving Loans Converted to Term	0	0
Total	24,781	1,551
Residential Real Estate \| Single Family \| Real Estate \| PCD
Credit Quality Indicators
Year one	0	0
Year two	0	0
Year three	0	0
Year four	0	0
Year five	0	0
Prior	1,180	1,178
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	1,180	1,178
Residential Real Estate \| Multi-family residential \| Real Estate
Credit Quality Indicators
Year one	72,044	67,979
Year two	80,793	59,239
Year three	110,426	54,321
Year four	10,356	89,818
Year five	46,566	11,815
Prior	2,494	27,020
Revolving Loans Amortized Cost Basis	0	49
Revolving Loans Converted to Term	0	0
Total	322,679	310,241
Residential Real Estate \| Multi-family residential \| Real Estate \| Pass
Credit Quality Indicators
Year one	72,044	67,979
Year two	80,793	59,239
Year three	110,426	54,321
Year four	8,402	68,531
Year five	32,822	11,815
Prior	2,494	27,020
Revolving Loans Amortized Cost Basis	0	49
Revolving Loans Converted to Term	0	0
Total	306,981	288,954
Residential Real Estate \| Multi-family residential \| Real Estate \| Special mention
Credit Quality Indicators
Year one		0
Year two		0
Year three		0
Year four		21,287
Year five		0
Prior		0
Revolving Loans Amortized Cost Basis		0
Revolving Loans Converted to Term		0
Total		21,287
Residential Real Estate \| Multi-family residential \| Real Estate \| Substandard
Credit Quality Indicators
Year one	0
Year two	0
Year three	0
Year four	1,954
Year five	13,744
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Converted to Term	0
Total	15,698
Commercial Real Estate \| OOCRE \| Real Estate
Credit Quality Indicators
Year one	191,044	116,833
Year two	109,019	113,305
Year three	85,639	58,016
Year four	45,929	98,552
Year five	72,692	62,269
Prior	206,236	210,611
Revolving Loans Amortized Cost Basis	5,225	2,986
Revolving Loans Converted to Term	45	2,965
Total	715,829	665,537
Commercial Real Estate \| OOCRE \| Real Estate \| Pass
Credit Quality Indicators
Year one	191,044	114,413
Year two	106,698	111,516
Year three	84,230	56,964
Year four	43,965	73,112
Year five	49,461	54,921
Prior	167,968	174,500
Revolving Loans Amortized Cost Basis	5,225	2,986
Revolving Loans Converted to Term	0	2,965
Total	648,591	591,377
Commercial Real Estate \| OOCRE \| Real Estate \| Special mention
Credit Quality Indicators
Year one	0	2,420
Year two	2,321	0
Year three	1,409	1,052
Year four	1,964	0
Year five	0	0
Prior	3,447	6,232
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	45	0
Total	9,186	9,704
Commercial Real Estate \| OOCRE \| Real Estate \| Substandard
Credit Quality Indicators
Year one	0	0
Year two	0	412
Year three	0	0
Year four	0	25,440
Year five	23,231	781
Prior	15,004	10,259
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	38,235	36,892
Commercial Real Estate \| OOCRE \| Real Estate \| PCD
Credit Quality Indicators
Year one	0	0
Year two	0	1,377
Year three	0	0
Year four	0	0
Year five	0	6,567
Prior	19,817	19,620
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	19,817	27,564
Commercial Real Estate \| NOOCRE \| Real Estate
Credit Quality Indicators
Year one	752,476	628,140
Year two	531,735	298,752
Year three	237,850	258,026
Year four	170,020	388,657
Year five	229,054	74,645
Prior	403,137	442,724
Revolving Loans Amortized Cost Basis	16,642	5,861
Revolving Loans Converted to Term	465	23,504
Total	2,341,379	2,120,309
Commercial Real Estate \| NOOCRE \| Real Estate \| Pass
Credit Quality Indicators
Year one	752,476	628,140
Year two	531,735	298,091
Year three	215,076	254,566
Year four	149,246	319,359
Year five	196,424	56,710
Prior	305,434	336,713
Revolving Loans Amortized Cost Basis	16,642	5,861
Revolving Loans Converted to Term	465	23,015
Total	2,167,498	1,922,455
Commercial Real Estate \| NOOCRE \| Real Estate \| Special mention
Credit Quality Indicators
Year one	0	0
Year two	0	613
Year three	22,774	1,685
Year four	19,464	29,469
Year five	12,274	16,354
Prior	51,451	48,952
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	489
Total	105,963	97,562
Commercial Real Estate \| NOOCRE \| Real Estate \| Substandard
Credit Quality Indicators
Year one	0	0
Year two	0	48
Year three	0	1,775
Year four	1,310	26,209
Year five	7,659	1,581
Prior	46,201	52,479
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	55,170	82,092
Commercial Real Estate \| NOOCRE \| Real Estate \| PCD
Credit Quality Indicators
Year one	0	0
Year two	0	0
Year three	0	0
Year four	0	13,620
Year five	12,697	0
Prior	51	4,580
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	12,748	18,200
PCD Loans \| PCD
Credit Quality Indicators
Total	39,013	58,093
PCD Loans \| Commercial \| PCD
Credit Quality Indicators
Total	3,701	8,626
PCD Loans \| Mortgage warehouse \| PCD
Credit Quality Indicators
Total	0	0
PCD Loans \| Consumer \| PCD
Credit Quality Indicators
Total	23	177
PCD Loans \| Construction and Land \| Real Estate \| PCD
Credit Quality Indicators
Total	1,544	2,348
PCD Loans \| Farmland \| Real Estate \| PCD
Credit Quality Indicators
Total	0	0
PCD Loans \| Residential Real Estate \| Single Family \| Real Estate \| PCD
Credit Quality Indicators
Total	1,180	1,178
PCD Loans \| Residential Real Estate \| Multi-family residential \| Real Estate \| PCD
Credit Quality Indicators
Total	0	0
PCD Loans \| Commercial Real Estate \| OOCRE \| Real Estate \| PCD
Credit Quality Indicators
Total	19,817	27,564
PCD Loans \| Commercial Real Estate \| NOOCRE \| Real Estate \| PCD
Credit Quality Indicators
Total	$ 12,748	$ 18,200

FAIR VALUE DISCLOSURES - Non-recurring Basis (Details) - Non-recurring - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Assets:
Collateral dependent loans with an ACL	$ 7,969,000	$ 10,100,000
Servicing assets with a valuation allowance	10,984,000	3,223,000
Collateral dependent loans with an ACL, gross	10,632,000	17,908,000
Impaired loans, specific allowance	2,663,000	7,808,000
Servicing asset at fair value, gross	13,435,000	3,850,000
Valuation allowance for servicing asset	2,451,000	627,000
Liabilities measured at fair value	0	0
Level 1
Assets:
Collateral dependent loans with an ACL	0	0
Servicing assets with a valuation allowance	0	0
Level 2
Assets:
Collateral dependent loans with an ACL	0	0
Servicing assets with a valuation allowance	0	0
Level 3
Assets:
Collateral dependent loans with an ACL	7,969,000	10,100,000
Servicing assets with a valuation allowance	$ 10,984,000	$ 3,223,000

SHARE TRANSACTIONS (Tables)

12 Months Ended

Dec. 31, 2022

Equity [Abstract]

Schedule of Share Repurchases


	Year Ended December 31,
	2022		2021
Number of shares repurchased	—		475,744
Weighted average price per share	$	—	$	32.36

INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS

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


	December 31, 2022
	Remaining
	Weighted	Gross						Net
	Amortization	Intangible		Valuation		Accumulated		Intangible
	Period	Asset		Allowance		Amortization		Asset
Core deposit intangibles	4.0 years	$	81,769	$	—	$	43,523	$	38,246
Servicing asset	7.4 years	24,760		2,451		7,429		14,880
Intangible lease assets	0.3 years	4,779		—		4,692		87
		$	111,308	$	2,451	$	55,644	$	53,213


	December 31, 2021
	Remaining
	Weighted	Gross						Net
	Amortization	Intangible		Valuation		Accumulated		Intangible
	Period	Asset		Allowance		Amortization		Asset
Core deposit intangibles	5.0 years	$	81,769	$	—	$	33,771	$	47,998
Servicing asset	7.2 years	22,090		627		3,758		17,705
Intangible lease assets	1.3 years	4,779		—		4,465		314
		$	108,638	$	627	$	41,994	$	66,017

For the years ended December 31, 2022, 2021 and 2020, amortization expense related to intangible assets of approximately $13,650, $10,888 and $11,297, respectively, is included within amortization of intangibles, occupancy and equipment and other income within the consolidated statements of income. For the years ended December 31, 2022 and 2021, a valuation allowance related to intangible assets was $2,451 and $627, respectively. The estimated aggregate future amortization expense for intangible assets remaining as of December 31, 2022 was as follows:


Year	Amount
2023	$	11,839
2024	11,752
2025	11,415
2026	11,329
2027	2,000
Thereafter	4,878
	$	53,213

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization

In this report, the words, "Veritex," "the Company," "we," "us," and "our" refer to the combined entities of Veritex Holdings, Inc. and its subsidiaries, including Veritex Community Bank. The word "Holdco" refers to Veritex Holdings, Inc.. The words "the Bank" refers to Veritex Community Bank.

Veritex is a Texas state banking organization, with corporate offices in Dallas, Texas, and currently operates 18 branches located in the Dallas-Fort Worth metroplex and 10 branches in the Houston metropolitan area. The Bank provides a full range of banking services to individual and corporate customers, which include commercial and retail lending, and the acceptance of checking and savings deposits. The Texas Department of Banking (the "TDB") and the Board of Governors of the Federal Reserve System (the "Federal Reserve") are the primary regulators of the Company and the Bank, and both regulatory agencies perform periodic examinations to ensure regulatory compliance.

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

Accounting Standards Codification ("ASC")

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

Segment Reporting

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

Reclassifications

Certain items in the Company's prior year financial statements were reclassified to conform to the current presentation.

Use of Estimates

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

Cash and Cash Equivalents

Cash and cash equivalents include amounts due from banks, interest-bearing deposits in other banks and federal funds sold.

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

Debt Securities

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

Interest income includes amortization of purchase premiums and discounts over the period to maturity using a level-yield method, except for premiums on callable debt securities. Realized gains and losses are recorded on the sale of debt securities in noninterest income.

The Company has made a policy election to exclude accrued interest from the amortized cost basis of debt securities and report accrued interest separately in other assets on the consolidated balance sheets. A debt security is placed on nonaccrual status at the time any principal or interest payments become more than 90 days delinquent or if full collection of interest or principal becomes uncertain. Accrued interest for a security placed on nonaccrual is reversed against interest income. There was no accrued interest related to debt securities reversed against interest income for the years ended December 31, 2022, 2021 and 2020.

Transfers of debt securities from AFS to HTM

Transfers of debt securities into the HTM category from the AFS category are made at fair value at the date of transfer. The unrealized holding gain or loss at the date of transfer is retained in other comprehensive income and in the carrying value of the HTM securities. Such amounts are amortized over the remaining life of the security.

Equity Securities

Equity securities are recorded at fair value, with unrealized gains and losses included in other noninterest income. The Company measures equity securities that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Dividends on equity securities are recorded in interest income for equity securities and other investments. Realized gains and losses are recorded on the sale of equity securities in gain (loss) on sales of securities. The Company recorded no impairment for equity securities without a readily determinable fair value for the years ended December 31, 2022 and 2021.

ACL – AFS Debt Securities

For AFS debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income. For debt securities AFS that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income.

Changes in the ACL are recorded as provision for (or benefit of) credit loss expense. Losses are charged against the allowance when management believes the non-collectability of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable on AFS debt securities is excluded from the estimate of credit losses.

ACL – HTM Debt Securities

Management measures expected credit losses on HTM debt securities on a collective basis by major security type. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Accrued interest receivable on HTM debt securities is excluded from the estimate of credit losses.

Management classifies the HTM portfolio into the following major security types: mortgage-backed securities, collateralized mortgage obligations and municipal securities. All of the mortgage-backed securities and collateralized mortgage obligations held by the Company are issued by U.S. government entities and agencies. These debt securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses.

FHLB and FRB Stock

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

LHFS

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

Fair Value Option

On a specific identification basis, the Company may elect the fair value option for certain financial instruments in the period the financial instrument was originated or acquired. As of December 31, 2022, the Company had held for sale government guaranteed loans and held for investment PPP loans that the Company has elected to carry at fair value. Changes in fair value for instruments using the fair value option are recorded in noninterest income. The Company had a decrease in fair value for loans the Company elected to carry at fair value of $1,072 for the year ended December 31, 2022 as compared to an increase in the fair value for loans the Company elected to carry at fair value of $1,845 for the year ended December 31, 2021. There was an decrease of $2,040 in fair value for LHFS using the fair value option for the year ended December 31, 2020.

In addition, the Company records upfront costs and fees as incurred that are related to items for which the fair value option is elected through noninterest income. For the years ended December 31, 2021 and 2020 the Company recognized any upfront fees of $7,721 and $12,811 on PPP loans through government guaranteed loan income, net, on the consolidated statements of income, respectively. No fee was recognized for the year ended December 31, 2022.

Gain on Sale of Guaranteed Portion of Small Business Administration ("SBA") and United States Department of Agriculture ("USDA") Loans

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

All sales of government guaranteed loans are executed on a servicing retained basis, and the Company retains the rights and obligations to service the loans. The standard sale structure provides for the Company to retain a portion of the cash flow from the interest payment received on the loan. When a loan sale involves the transfer of an interest less than the entire loan, the controlling accounting method under FASB ASC 860, Transfers and Servicing, requires the seller to reallocate the carrying basis between the assets transferred and the assets retained based on the relative fair value of the respective assets as of the date of sale. The maximum gain on sale that can be recognized is the difference between the fair value of the assets sold and the reallocated basis of the assets sold. The gain on sale, which is recognized in government guaranteed loan income, net on the consolidated statements of income, is the sum of the cash premium on the guaranteed loan and the fair value of the servicing assets recognized, less the discount recorded on the unguaranteed portion of the loan retained by the Company. For the years ended December 31, 2022, 2021 and 2020, the Company recognized $12,988, $6,194, and $3,379, respectively, of gain on sales of government guaranteed loans.

Gain on Sale of Mortgage LHFS

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

Adoption of New Accounting Standard

On January 1, 2020, the Company adopted Accounting Standard Update (“ASU”) 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the CECL methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet (“OBS”) credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with Topic 842 on leases. In addition, ASC 326 made changes to the accounting for AFS debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities management does not intend to sell or believes that it is more likely than not they will be required to sell.

The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost, net investments in leases and OBS credit exposures. Results for reporting periods beginning after January 1, 2020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company recorded a net decrease to retained earnings of $15,505 as of January 1, 2020 for the cumulative effect of adopting ASC 326.

The Company adopted ASC 326 using the prospective transition approach for financial assets purchased with credit deterioration (“PCD”) that were previously classified as purchased credit impaired ("PCI") and accounted for under ASC 310-30. In accordance with the standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. On January 1, 2020, the amortized cost basis of the PCD assets were adjusted to reflect the addition of $19,710 of the ACL. The remaining noncredit discount will be accreted into interest income at the effective interest rate. As allowed by ASC 326, the Company elected to maintain pools of loans accounted for under ASC 310-30. In accordance with the standard, management did not reassess whether modifications to individual acquired financial assets accounted for in pools were troubled debt restructurings as of the date of adoption.

The following table illustrates the impact of ASC 326.


	January 1, 2020
	As Reported Under ASC 326		Pre-ASC 326 Adoption		Impact of ASC 326 Adoption
Assets:
ACL on debt securities HTM	$	—	$	—	$	—
ACL on loans
Construction and land	3,760		3,822		(62)
Farmland	65		61		4
1 - 4 family residential	6,002		1,378		4,624
Multi-family residential	2,593		1,965		628
Owner Occupied Commercial Real Estate ("OOCRE")	13,066		1,978		11,088
Non-Owner Occupied Commercial Real Estate ("NOOCRE")	15,314		8,139		7,175
Commercial	27,729		12,369		15,360
Consumer	442		122		320
ACL on loans	$	68,971	$	29,834	$	39,137

Liabilities:
ACL on OBS credit exposures	$	1,718	$	878	$	840

LHI

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost, net of the ACL. Amortized cost is the principal balance outstanding, net of purchase premiums and discounts, fair value hedge accounting adjustments, deferred loan fees and costs. The Company has made a policy election to exclude accrued interest from the amortized cost basis of loans and report accrued interest separately from the related loan balance in other assets on the Consolidated Balance Sheets.

Interest on loans is recognized using the effective-interest method on the daily balances of the principal amounts outstanding. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments.

Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due in accordance with the terms of the loan agreement. The accrual of interest on loans is discontinued when, in management’s opinion, the borrower may be unable to meet payment obligations as they come due, as well as when required by regulatory provisions. Loans may be placed on nonaccrual status regardless of whether or not such loans are considered past due. When a loan is placed on nonaccrual status, all interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Under the cash-basis method, interest income is recorded when the payment is received in cash. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Acquired Loans

Prior to January 1, 2020, loans acquired in a business combination that had evidence of deterioration of credit quality since origination and for which it was probable, at acquisition, that the Company would be unable to collect all contractually required payments receivable were considered PCI. PCI loans were accounted for individually or aggregated into pools of loans based on common risk characteristics such as credit grade, loan type, and date of origination.

All loans considered to be PCI loans prior to January 1, 2020 were converted to PCD loans upon the Company’s adoption of ASC 326. The Company elected to maintain pools of loans that were previously accounted for under ASC 310-30 and will continue to account for these pools as a unit of account for all applicable areas of accounting which include credit loss measurement, interest income recognition, non-accrual determination, write-off determination and trouble debt restructuring identification. Loans are only removed from the existing pools if they are foreclosed, written off, paid off, or sold. Upon adoption of ASC 326, the ACL was determined for each loan or pool and added to the loan or pool's carrying amount to establish a new amortized cost basis. The difference between the unpaid principal balance of the loan or pool and the new amortized cost basis is the noncredit premium or discount which will be accreted into interest income over the remaining life of the loan or pool. Changes to the ACL after adoption are recorded through provision for credit loss expense.

Subsequent to January 1, 2020, loans acquired in a business combination that have experienced more-than-insignificant deterioration in credit quality since origination are considered PCD loans. At the acquisition date, an estimate of expected credit losses is made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics. This initial ACL is allocated to individual PCD loans and added to the purchase price or acquisition date fair values to establish the initial amortized cost basis of the PCD loans. As the initial ACL is added to the purchase price, there is no credit loss expense recognized upon acquisition of a PCD loan. Any difference between the unpaid principal balance of PCD loans and the amortized cost basis is considered to relate to noncredit factors and results in a discount or premium. Discounts and premiums are recognized through interest income on a level-yield method over the life of the loans.

For acquired loans not deemed purchased credit deteriorated at acquisition, the differences between the initial fair value and the unpaid principal balance are recognized as interest income on a level-yield basis over the lives of the related loans. At the acquisition date, an initial allowance for expected credit losses is estimated and recorded as credit loss expense.

The subsequent measurement of expected credit losses for all acquired loans is the same as the subsequent measurement of expected credit losses for originated loans.

ACL - Loans

The ACL is a valuation account that is deducted from the LHI amortized cost basis to present the net amount expected to be collected on LHI.

The Company estimates the ACL on loan held for investment based on the underlying assets’ amortized cost basis, which is the amount at which the financing receivable is originated or acquired, adjusted for applicable accretion or amortization of premium, discount, and net deferred fees or costs, collection of cash, and charge-offs. In the event that collection of principal becomes uncertain, the Company has policies in place to reverse accrued interest in a timely manner. Therefore, the Company has made a policy election to exclude accrued interest from the measurement of ACL.

Expected credit losses are reflected in the ACL through a charge to provision for credit loss expense. When the Company deems all or a portion of a financial asset to be uncollectible the appropriate amount is written off and the ACL is reduced by the same amount. The Company applies judgment to determine when a financial asset is deemed uncollectible; however, an asset will typically be considered uncollectible no later than when all efforts at collection have been exhausted. Subsequent recoveries, if any, are credited to the ACL when received.

The Company measures expected credit losses of financial assets on a collective, or pool, basis, when the financial assets share similar risk characteristics. Depending on the nature of the pool of financial assets with similar risk characteristics, the Company uses a discounted cash flow (“DCF”) method or a loss-rate method to estimate expected credit losses. The Company uses a probability of default/loss given default (“PD/LGD”) model to estimate expected credit losses for our PCD loans and pools acquired prior to January 1, 2020.

The Company’s methodologies for estimating the ACL take into account available relevant information about the collectability of cash flows, including information about past events, current conditions, and reasonable and supportable forecasts. The methodologies apply historical loss information, adjusted for asset-specific characteristics, economic conditions

at the measurement date, and forecasts about future economic conditions expected to exist through the contractual lives of the financial assets that are reasonable and supportable, to the identified pools of financial assets with similar risk characteristics for which the historical loss experience was observed.

The Company has identified the following pools of financial assets with similar risk characteristics for measuring expected credit losses:

Real Estate — This category of loans consists of the following loan types:

Construction and land — This category of loans consists of loans to finance the ground up construction, improvement and/or carrying for sale after the completion of construction of owner occupied and non-owner occupied residential and commercial properties, and loans secured by raw or improved land. The repayment of construction loans is generally dependent upon the successful completion of the improvements by the builder for the end user, or sale of the property to a third party. Repayment of land secured loans are dependent upon the successful development and sale of the property, the sale of the land as is, or the outside cash flow of the owners to support the retirement of the debt.

Farmland — These loans are principally loans to purchase farmland.

1-4 family residential — This category of loans includes both first and junior liens on residential real estate. Home equity revolving lines of credit and home equity term loans are included in this group of loans.

Multi-family residential — This category of loans is primarily secured by non-owner occupied apartment or multifamily residential buildings. Generally, these types of loans are thought to involve a greater degree of credit risk than owner occupied CRE as they are more sensitive to adverse economic conditions.

OOCRE — This category of loans includes real estate loans for a variety of commercial property types and purposes. The repayment of real estate loans is generally largely dependent on the successful operation of the property securing the loans or the business conducted on the property securing the loan. Real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s real estate portfolio are generally diverse in terms of type and geographic location, throughout the Dallas-Fort Worth metroplex and Houston metropolitan area. This diversity helps reduce the exposure to adverse economic events that may affect any single market or industry.

NOOCRE — This category of loans includes investment real estate loans that are primarily secured by office and industrial buildings, retail shopping centers and various special purpose properties. Generally, these types of loans are thought to involve a greater degree of credit risk than OOCRE as they are more sensitive to adverse economic conditions.

Commercial — This category of loans is for commercial, corporate and business purposes. The Company’s commercial business loan portfolio is comprised of loans for a variety of purposes and across a variety of industries. These loans include general commercial and industrial loans, loans to purchase capital equipment, agriculture operating loans and other business loans for working capital and operational purposes. Most commercial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory.

Mortgage warehouse — Mortgage warehouse facilities are provided to unaffiliated mortgage origination companies and are collateralized by 1-4 family residential loans. The originator closes new mortgage loans with the intent to sell these loans to third party investors for a profit. The Company provides funding to the mortgage companies for the period between the origination and their sale of the loan. The Company is repaid with the proceeds received from sale of the mortgage loan to the final investor.

Consumer — This category of loans is used for personal use typically for consumer purposes.

Collateral Dependent Financial Assets

Loans that do not share similar risk characteristics are evaluated on an individual basis. For collateral dependent financial assets where the Company has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the financial asset to be provided substantially through the operation or sale of the collateral, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the asset as of the measurement date. When repayment is expected to be from the operation of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the financial asset exceeds the present value of expected cash flows from the operation of the collateral. When repayment is expected to be from the sale of the collateral, expected credit losses are calculated as the amount by which the amortized costs basis of the financial asset exceeds the fair value of the underlying collateral less estimated costs to sell. The ACL may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the financial asset.

For collateralized financial assets that are not collateral dependent, the Company will consider the nature of the collateral, potential future changes in collateral values, and historical loss information for financial assets secured with similar collateral to determine the ACL.

Troubled-debt Restructurings (TDRs)

From time to time, the Company may modify its loan agreement with a borrower. A modified loan is considered a TDR, using Accounting Standards Codification 310-40, “Receivables – Troubled Debt Restructurings by Creditors,” (“ASC 310-40”), when two conditions are met: (i) the borrower is experiencing financial difficulty and (ii) concessions are made by the Company that would not otherwise be considered for a borrower with similar credit risk characteristics. Modifications to loan terms may include a lower interest rate, a reduction of principal, or a longer term to maturity. The ACL on a TDR is measured using the same method as all other LHI except that the original interest rate is used to discount the expected cash flows, not the rate specified within the restructuring. In addition, when management has a reasonable expectation of executing a TDR, the expected effect of the modification is included in the estimate of the ACL. ASU 2022-02, “Financial Instruments - Credit Losses (Topic 326)” (“ASU 2022-02”) eliminates the guidance on troubled debt restructurings and requires entities to evaluate all loan modifications to determine if they result in a new loan or a continuation of the existing loan. ASU 2022-02 also requires that entities disclose current-period gross charge-offs by year of origination for loans and leases. The adoption of ASU 2022-02 is not expected to have a significant impact on our financial statements.

Contractual Term

Discounted Cash Flow Method

The Company uses the DCF method to estimate expected credit losses for the CRE, construction and land, 1-4 family residential, commercial (excluding liquid credit and premium finance), and consumer loan pools. For each of these loan segments, the Company generates cash flow projections at the instrument level wherein payment expectations are adjusted for estimated prepayment speeds, curtailment rates, time to recovery, probability of default and loss given default. The modeling of expected prepayment speeds, curtailment rates and time to recovery are based on historical internal data.

The Company uses regression analysis of historical internal and peer data to determine suitable loss drivers to utilize when modeling lifetime probability of default and loss given default. This analysis also determines how expected probability of default and loss given default will react to forecasted levels of the loss drivers. For all loan pools utilizing the DCF method, management utilizes and forecasts Texas unemployment as a loss driver. Management also utilizes and forecasts either one-year percentage change in Texas gross domestic product or one-year percentage change in the CRE property index as a second loss driver depending on the nature of the underlying loan pool and how well that loss driver correlates to expected future losses.

For all DCF models, management has determined that four quarters represents a reasonable and supportable forecast period and reverts back to a historical loss rate over four quarters on a straight-line basis as of the reporting period. Management leverages economic projections from a reputable and independent third party to inform its loss driver forecasts over the four-quarter forecast period. Other internal and external indicators of economic forecasts are also considered by management when developing the forecast metrics.

The combination of adjustments for credit expectations (default and loss) and timing expectations (prepayment speeds, curtailment rates and time to recovery) produces an expected cash flow stream at the instrument level. Instrument effective yield is calculated, net of the impacts of prepayment assumptions, and the instrument expected cash flows are then discounted at that effective yield to produce an instrument-level net present value of expected cash flows (“NPV”). An ACL is established for the difference between the instrument’s NPV and amortized cost basis. The ACL is further refined for qualitative loss factors based on management's judgment of company, market, industry or business specific data, changes in underlying loan composition of specific portfolios, trends relating to credit quality, delinquency, non-performing and adversely rated loans, and reasonable and supportable forecasts of economic conditions.

Loss-Rate Method

The Company uses a loss-rate method to estimate expected credit losses for its farmland and MW loan pool. For these loan segments, the Company applies an expected loss ratio based on internal and peer historical losses adjusted as appropriate for qualitative factors. Qualitative loss factors are based on management's judgment of company, market, industry or business specific data, changes in underlying loan composition of specific portfolios, trends relating to credit quality, delinquency, non-performing and adversely rated loans, and reasonable and supportable forecasts of economic conditions.

Probability of Default/Loss Given Default Method

The Company uses the PD/LGD method to estimate expected credit losses for the construction and land, 1-4 family residential, OOCRE, NOOCRE, commercial and consumer PCD loan pools. For each of these loan segments, the Company generates cash flow projections at the instrument level wherein payment expectations are adjusted for estimated prepayment speeds, time to recovery, probability of default, and loss given default.

The combination of adjustments for credit expectations (default and loss) and timing expectations (prepayment, curtailment and time to recovery) produces an expected cash flow stream at the instrument level. An ACL is established for the difference between the instrument’s undiscounted cash flows and amortized cost basis. The ACL is further refined for qualitative loss factors based on management's judgment of company, market, industry or business specific data, changes in underlying loan composition of specific portfolios, trends relating to credit quality, delinquency, non-performing and adversely rated loans, and reasonable and supportable forecasts of economic conditions.

Loan Commitments and ACL on Off-Balance Sheet Credit Exposures

Financial instruments include OBS credit instruments, such as commitments to make loans, MW commitments and standby and commercial letters of credit, issued to meet customer financing needs. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for OBS loan commitments is represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded.

The Company records an ACL on OBS credit exposures, unless the commitments to extend credit are unconditionally cancellable, through a charge to provision for credit losses for unfunded commitments included in the Company’s consolidated statements of income. The ACL on OBS credit exposures is estimated by loan segment at each balance sheet date under the CECL model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur, and is included in accounts payable and other liabilities on the Company’s consolidated balance sheets.

Derivative Financial Instruments (Not Designated as Accounting Hedges)

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

Derivative Financial Instruments (Designated as Accounting Hedges)

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

The Company assesses the “effectiveness” of hedging derivatives on the date an arrangement was entered into and on a prospective basis at least quarterly. Hedge “effectiveness” is determined by the extent to which changes in the fair value of a derivative instrument offset changes in the fair value, cash flows or carrying value attributable to the risk being hedged. If the relationship between the change in the fair value of the derivative instrument and the change in the hedged item falls within a range considered to be the industry norm, the hedge is considered “highly effective” and qualifies for hedge accounting. A hedge is “ineffective” if the relationship between the changes falls outside the acceptable range. In that case, hedge accounting is discontinued on a prospective basis. The time value of the option is excluded from the assessment of effectiveness and is recognized in earnings using a straight-line amortization method over the life of the hedge arrangement. Gains or losses resulting from the termination or sale of a derivative accounted for as a cash flow hedge remain in other comprehensive income and are accreted or amortized to earnings over the remaining period of the former hedging relationship unless the forecasted transaction becomes probable of not occurring.

Transfers of Financial Assets

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

Equity Method Investments

The Company applies the equity method of accounting to investments when the Company has significant influence, but not a controlling interest in the investee. Judgment regarding the level of influence over each equity method investment includes considering key factors such as ownership interest, representation on the board of directors, participation in policy-making decisions and material intercompany transactions.

The Company’s equity method investments are reported at cost and include direct transaction costs to make the investment. Equity method investments are subsequently adjusted each period for the Company’s proportionate share of the investee’s income or loss, which includes an elimination by the Company of any intra-entity profits and losses In addition, the Company’s subsequent proportionate share of other comprehensive income or loss is reported in the Company’s condensed consolidated statements of comprehensive income with a corresponding adjustment to the equity method investment. Any dividends received on the investment are recognized as a reduction to the carrying amount of the investment.

The difference between the cost of an investment and the amount of underlying equity in net assets of the investee represents an equity method basis difference, which shall be accounted for as if the investee were consolidated. The Company accounts for the equity method basis difference as equity method goodwill. The Company assesses equity method investments for impairment whenever events or changes in circumstances indicate that the carrying value of an investment may not be recoverable.

On July 16, 2021, the Bank acquired a 49% interest in Thrive Mortgage, LLC (“Thrive”) for $54,914 in cash and obtained the right to designate a member to Thrive’s board of directors. As a result of the investment, the Company has a $35,816 basis difference which is being accounted for as equity method goodwill.

The Company had $55,589 and $60,730 in equity method investments for the years ended December 31, 2022 and 2021 reported in “other assets” in the consolidated balance sheets. The Company’s proportionate share of the loss resulting from these investments for the years ended December 31, 2022 was $5,141. The Company’s proportionate share of the income resulting from these investments for the years ended December 31, 2021 was $5,760. The Company's proportionate share of the (loss) income resulting from these investments is reported under the line item captioned “equity method investment (loss) income” in the Company’s consolidated statements of income.

Bank Premises and Equipment


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

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

Bank premises and equipment with definite lives are tested for impairment when a triggering event occurs. No impairment charges related to bank premises and equipment assets were recorded during the years ended December 31, 2022, 2021 and 2020.

Leases

The Company’s operating leases relate primarily to office space and bank branches. Right-of-use (“ROU”) assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents the Company’s incremental borrowing rate at the lease commencement date. ROU assets are further adjusted for lease incentives, deferred rent and prepaid rent. Operating lease expense, which consists of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded in occupancy and equipment expense in the consolidated statements of income. Certain of the Company’s leases contain options to renew the lease; however, these renewal options are not included in the calculation of the lease liabilities as they are not reasonably certain to be exercised. The ROU asset and operating lease liability are recorded in other assets and other liabilities, respectively, in the consolidated balance sheets. See Note 8 - Leases for additional information.

Securities Sold Under Agreements to Repurchase

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

OREO

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

Bank-Owned Life Insurance

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

Goodwill and Intangible Assets

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

The Company performed its annual goodwill impairment test as of October 31, 2022 using a qualitative impairment assessment and determined that it was not more likely than not that the fair value of our reporting unit was less than its carrying amount. The Company also did not identify any potential impairment indicators subsequent to our annual assessment. Management will continue to monitor events that could impact this conclusion in the future.

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


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

All indefinite lived intangible assets are tested annually for potential impairment or when triggering events occur. Intangible assets with definite lives are tested for impairment when a triggering event occurs. No impairment charges related to goodwill and intangible assets were recorded during the years ended December 31, 2022, 2021 and 2020.

Servicing Assets

The Company accounts for its servicing assets at amortized cost in accordance with ASC 860, "Servicing Assets and Liabilities." The codification requires that servicing rights acquired through the origination of loans, which are sold with servicing rights retained, are recognized as separate assets. Servicing assets are recorded as the difference between the contractual servicing fees and adequate compensation for performing the servicing, and are periodically reviewed and adjusted for any impairment. The amount of impairment recognized, if any, is the amount by which the servicing assets exceed their fair value. The amount of recovery, if any, cannot exceed the previous impairment recognized. Fair value of the servicing assets is estimated using discounted cash flows based on current market interest rates. Servicing rights are amortized over their estimated lives.

Marketing Expense

The Company expenses all marketing costs as they are incurred. Marketing expenses were $7,179, $5,344 and $3,651 in 2022, 2021 and 2020, respectively.

Income Taxes

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

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

The Company may recognize the tax benefit of an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements would be the benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. For the years ended December 31, 2022 and 2021, management has determined there are no material uncertain tax positions.

When necessary, the Company would include interest assessed by taxing authorities in “interest expense” and penalties related to income taxes in “other expense” on its Consolidated Statements of Income. The Company recorded $22, $126 and $143 of interest or penalties related to income tax for the years ended December 31, 2022, 2021 and 2020, respectively. With few exceptions, such as state examinations, the Company is generally no longer subject to U.S. federal income tax examinations by tax authorities for the years before 2019 and state income tax examinations for tax years prior to 2018.

Fair Values of Financial Instruments

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

Revenue from Contracts with Customers

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

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

Stock Based Compensation

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

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

Treasury Stock

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

Comprehensive Income

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

Business Combinations

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

Earnings Per Share ("EPS")

EPS are based upon the weighted-average number of shares outstanding. The table below sets forth the reconciliation between weighted average shares used for calculating basic and diluted EPS for the years ended December 31, 2022, 2021 and 2020.


	Year Ended December 31,
	2022		2021		2020
Earnings (numerator)


Net income	$	146,315	$	139,584	$	73,883
Shares (denominator)
Weighted average shares outstanding for basic EPS (thousands)	53,170		49,405		49,883
Dilutive effect of employee stock-based awards	782		947		153
Adjusted weighted average shares outstanding	$	53,952	$	50,352	$	50,036
EPS:
Basic	$	2.75	$	2.83	$	1.48
Diluted	$	2.71	$	2.77	$	1.48

For the year ended December 31, 2022, there were 177 antidilutive shares excluded from the diluted EPS weighted average shares, 177 of these relate to antidilutive restricted stock units ("RSUs") and the remaining none relate to stock options excluded from the diluted EPS weighted average shares. For the year ended December 31, 2021, there were 29 antidilutive RSUs excluded from the diluted EPS weighted average shares. For the year ended December 31, 2020, there were 1,481 antidilutive shares excluded from the diluted EPS weighted average shares, 1,137 of these relate to antidilutive stock options and the remaining 344 relate to antidilutive RSUs.

ADVANCES FROM FHLB - Additional Information (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Advances from FHLB	$ 1,175,000	$ 777,562
Availability to borrow additional funds	$ 787,324
Weighted Average
Debt Instrument [Line Items]
Advances from Federal Home Loan Bank, weighted average rate	4.67%

LEASES

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

LEASES

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

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

The Company’s leases related primarily to office space and bank branches with remaining lease terms generally ranging from one to eight years. Certain lease arrangements contain extension options which typically range from five to 10 years at the then fair market rental rates. As these extension options are not generally considered reasonably certain of exercise, they are not included in the lease term. As of December 31, 2022, operating lease ROU assets and liabilities were $16,762 and $17,327, respectively. As of December 31, 2021, operating lease ROU assets and liabilities were $17,060 and $18,023, respectively, and is recorded in other assets and accounts payable and accrued expenses, respectively, in the consolidated balance sheets.

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


	For the Year Ended December 31,
	2022		2021
Operating lease cost	$	5,161	$	4,298

Variable lease cost	640		641
Net lease cost	$	5,801	$	4,939

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


	For the Year Ended December 31,
	2022			2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,781		$	4,051
Weighted-average remaining lease term - operating leases, in years	5.4 years			6.0 years
Weighted-average discount rate - operating leases	2.88		%	1.94		%

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


	December 31, 2022
Lease payments due:
Within one year	$	4,737
After one but within two years	4,351
After two but within three years	3,549
After three but within four years	2,227
After four but within five years	1,089
After five years	3,235
Total undiscounted cash flows	19,188
Less: Discount on cash flows	(1,861)
Total lease liability	$	17,327

There were no sale and leaseback transactions, leveraged leases or lease transactions with related parties during the years ended December 31, 2022 and 2021. As of December 31, 2022, the Company did not have any leases that had not yet commenced, but will create significant rights and obligations for the Company.

INTANGIBLE ASSETS - Future Amortization Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Estimated aggregate future amortization expense [Abstract]
2023	$ 11,839
2024	11,752
2025	11,415
2026	11,329
2027	2,000
Thereafter	4,878
Net intangible assets	$ 53,213	$ 66,017

SUBORDINATED DEBENTURES AND SUBORDINATED NOTES - Narrative (Details)			12 Months Ended
	Oct. 05, 2020 USD ($)	Nov. 08, 2019 USD ($)	Dec. 31, 2022 USD ($) quarter	Dec. 31, 2021	Jan. 01, 2019 USD ($)	Aug. 01, 2017 USD ($)
Parkway Trust Securities
Debt Instrument [Line Items]
Distribution effective rate (as a percent)			6.62%	2.05%
Parkway Trust Securities \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable distribution rate (as a percent)			1.85%
Parkway Trust Securities \| Junior Subordinated Debt
Debt Instrument [Line Items]
Debt instrument, face amount			$ 3,093,000
SovDallas Trust Securities \| Junior Subordinated Debt
Debt Instrument [Line Items]
Debt instrument, face amount						$ 8,609,000
Debt instrument, effective percentage			7.74%	4.13%
SovDallas Trust Securities \| Junior Subordinated Debt \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Interest on securities, addition to LIBOR			4.00%
Patriot I Trust Securities \| Junior Subordinated Debt
Debt Instrument [Line Items]
Debt instrument, face amount					$ 5,155,000
Debt instrument, effective percentage			5.93%	1.97%
Patriot I Trust Securities \| Junior Subordinated Debt \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate			1.85%
Patriot II Trust Securities \| Junior Subordinated Debt
Debt Instrument [Line Items]
Debt instrument, face amount					$ 17,011,000
Debt instrument, effective percentage			6.57%	2.00%
Patriot II Trust Securities \| Junior Subordinated Debt \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate			1.80%
2019 Notes \| Subordinated Debt
Debt Instrument [Line Items]
Debt instrument, face amount		$ 75,000,000
Basis spread on variable rate			3.47%
Interest rate, stated percentage		4.75%
Redemption price, percentage		100.00%
2020 Notes \| Subordinated Debt
Debt Instrument [Line Items]
Debt instrument, face amount	$ 125,000,000
Interest rate, stated percentage	4.125%
2020 Notes \| Subordinated Debt \| Overnight Funding Rate
Debt Instrument [Line Items]
Basis spread on variable rate	3.995%
Maximum \| Parkway Trust Securities
Debt Instrument [Line Items]
Interest distribution quarterly periods \| quarter			20

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair Value Option (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
Fair value, option, change in fair value of government guaranteed loans and PPP loans	$ (1,072,000)	$ 1,845,000	$ (2,040,000)
PPP fee income	$ 0	$ 7,721,000	$ 12,811,000

BUSINESS COMBINATIONS

12 Months Ended

Dec. 31, 2022

Business Combination and Asset Acquisition [Abstract]

BUSINESS COMBINATIONS

North Avenue Capital, LLC ("NAC")

On November 1, 2021, the Company completed its acquisition of NAC. Under this method of accounting, assets acquired and liabilities assumed are recorded at their estimated fair values. The excess cost over fair value of net assets acquired is recorded as goodwill. As the consideration paid for NAC exceeded the provisional value of the net assets acquired, goodwill of $32,931 related to the acquisition was recorded. This goodwill resulted from the combination of expected operational synergies and increased market share in the fragmented USDA lending space. The goodwill will be deducted for tax purposes.

The acquisition makes the Bank a leading player in the USDA Business and Industry lending program. It furthered the Company’s strategy of diversifying revenue streams and providing meaningful gain on sale and loan servicing fees. The Company will leverage NAC’s loan sourcing technology to further enhance the Company’s products and services.

Consideration

Under the terms of the definitive agreement for the acquisition, the Bank paid $57,500 in cash to existing shareholders of NAC. Three years after the transaction, NAC has the right, subject to adjustment, to receive an additional $5,000 in cash subject to certain performance measures. NAC will continue to operate under its current name and brand and in its current office space, as a wholly owned subsidiary of the Bank.

Fair Value

The following table presents the amounts recorded on the consolidated balance sheets on the acquisition date of November 1, 2021, showing the estimated fair value as reported at December 31, 2021, the measurement period adjustments and the fair value determined to be final as of March 31, 2022.


	Estimate at December 31, 2021		Measurement Period Adjustments		Final Fair Value
Assets acquired
Cash and cash equivalents	$	1,978	$	—	$	1,978
LHI	29,338		(681)		28,657
Servicing asset	13,913		—		13,913
Other assets	690		—		690
	45,919		(681)		45,238

Liabilities assumed
Accounts payable and other accrued expenses	16,350		—		16,350
	16,350		—		16,350

Fair value of net assets acquired	29,569		(681)		28,888
Consideration:
Cash paid	57,500		—		57,500
Contingent consideration	5,000		—		5,000
Total consideration	$	62,500	$	—	$	62,500
Goodwill	$	32,931	$	681	$	33,612

Acquisition-related Expenses

For the year ended December 31, 2022, the Company incurred no pre-tax M&A expenses. For the year ended December 31, 2021, the Company incurred $826 of pre-tax merger and M&A.

Acquired Loans and PCD Loans

Acquired loans were recorded at fair value based on a discounted cash flow valuation methodology that considers, among other things, projected default rates, loss given defaults and recovery rates. No ACL was carried over from NAC. The Bank did not identify any acquired PCD loans.

The following table discloses the fair value and contractual value of loans acquired from NAC on November 1, 2021:


	Total acquired loans
Commercial	$	26,519
CRE	2,138
Total fair value	$	28,657
Contractual principal balance	$	29,338

Supplemental Pro Forma Information (unaudited)

The following table presents supplemental pro forma information for the years ended December 31, 2020 and 2019 as if the NAC acquisition was completed as of January 1, 2019. The pro forma results combine the historical results of NAC into the Company's consolidated statements of income, including the impact of certain purchase accounting adjustments, including loan discount accretion. The pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results that would have been obtained had the acquisition actually occurred on January 1, 2019:


	Year Ended December 31,
	2020		2019
Net interest income	$	267,331	$	286,313
Net income	84,368		93,939

Basic EPS	$	1.69	$	1.77
Diluted EPS	1.69		1.74

STOCK AND INCENTIVE PLANS - Fair Value Options Exercised or Restricted Stock Units Vested (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
2010 Stock Option and Equity Incentive Plan \| Non-performance Based Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonperformance-based stock options exercised	$ 0	$ 568	$ 6,579
2010 Stock Option and Equity Incentive Plan \| RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-performance based restricted stock units vested	792
2022 Equity Plan \| Non-performance Based Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonperformance-based stock options exercised	6,356	9,214	954
2022 Equity Plan \| RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-performance based restricted stock units vested	4,040	2,781	2,529
2022 Equity Plan \| PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-performance based restricted stock units vested		0	36
Veritex (Green) 2014 Plan \| Non-performance Based Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonperformance-based stock options exercised	1,157	4,599	1,021
Non-performance based restricted stock units vested	1,261	0	0
Veritex (Green) 2014 Plan \| RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-performance based restricted stock units vested	1,312	713	828
Green Bancorp Inc. 2010 Stock Option Plan \| Non-performance Based Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonperformance-based stock options exercised	$ 47	$ 1,838	$ 12,231

STOCK AND INCENTIVE PLANS - Veritex (Green) 2014 Plan Options (Details) - Veritex (Green) 2014 Plan - Non-performance Based Stock Options - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Shares Underlying Options
Outstanding at beginning of period (in shares)	217,804	352,000	386,969
Granted (in shares)			31,075
Forfeited (in shares)		(7,245)	(30,711)
Exercised (in shares)	(62,592)	(126,951)	(35,333)
Outstanding at the end of period (in shares)	155,212	217,804	352,000
Options exercisable at end of period (in shares)	145,696
Weighted Average Exercise Price
Outstanding at beginning of period (in dollars per share)	$ 19.62	$ 19.99	$ 19.30
Granted (in dollars per share)			29.13
Forfeited (in dollars per share)		21.38	20.92
Exercised (in dollars per share)	19.59	20.55	19.42
Outstanding at the end of period (in dollars per share)	19.83	$ 19.62	$ 19.99
Options exercisable at end of period (in dollars per share)	$ 19.16
Weighted Average Contractual Term
Outstanding at beginning of year, term (in years)	5 years 2 months 12 days
Options exercisable at end of period (in years)	5 years 25 days
Aggregate Intrinsic Value
Aggregate intrinsic value of outstanding stock options (in dollars)	$ 1,321
Options exercisable, intrinsic value	$ 1,321

INCOME TAXES - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Deferred tax assets:
ACL	$ 21,647	$ 18,274
Equity compensation	4,286	4,111
Purchase premium/loan discounts	1,546	1,555
Lease liability	3,708	3,785
Net unrealized loss on debt securities AFS	17,204	0
Purchased securities	2,520	2,507
Other	9,219	6,320
Total deferred tax assets	60,130	36,552
Deferred tax liabilities:
Intangibles	9,340	10,372
Bank premises and equipment	6,163	5,773
ROU asset	3,587	3,583
Net unrealized gain on debt securities AFS	0	17,030
Other	3,214	1,864
Total deferred tax liabilities	22,304	38,622
Net deferred tax asset (liability)	$ 37,826
Net deferred tax asset (liability)		$ (2,070)

BUSINESS COMBINATIONS - Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Business Combination and Asset Acquisition [Abstract]
Net interest income	$ 267,331	$ 286,313
Net income	$ 84,368	$ 93,939
Basic EPS (in dollars per share)	$ 1.69	$ 1.77
Diluted EPS (in dollars per share)	$ 1.69	$ 1.74

STOCK AND INCENTIVE PLANS - 2010 Plan - Options (Details) - Non-performance Based Stock Options - 2010 Stock Option and Equity Incentive Plan - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Shares Underlying Options
Outstanding at beginning of period (in shares)	1,000	20,000	257,500
Exercised (in shares)		(19,000)	(237,500)
Outstanding at the end of period (in shares)	1,000	1,000	20,000	257,500
Weighted Average Exercise Price
Outstanding at beginning of period (in dollars per share)	$ 10.43	$ 10.09	$ 10.28
Exercised (in dollars per share)		10.00	10.12
Outstanding at the end of period (in dollars per share)	$ 10.43	$ 10.43	$ 10.09	$ 10.28
Weighted Average Remaining Contractual Term
Outstanding at beginning of year, term (in years)	1 year 25 days	1 year 25 days	1 year 21 days	1 year 4 months 13 days
Exercisable, term (in years)	1 year 25 days
Aggregate Intrinsic Value
Aggregate intrinsic value of outstanding stock options (in dollars)	$ 43

LHI AND ACL - Collateral Dependent Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Jan. 01, 2020	Dec. 31, 2019
Servicing Asset at Amortized Cost [Line Items]
Loans	$ 9,499,629	$ 7,341,143
ACL Allocation	91,052	77,754	$ 105,084	$ 29,834	$ 29,834
Real Estate \| Commercial Real Estate \| OOCRE
Servicing Asset at Amortized Cost [Line Items]
Loans	715,829	665,537
ACL Allocation	8,707	9,215	9,719	1,978	1,991
Real Estate \| Commercial Real Estate \| NOOCRE
Servicing Asset at Amortized Cost [Line Items]
Loans	2,341,379	2,120,309
ACL Allocation	26,704	30,548	35,237	8,139	8,126
Commercial
Servicing Asset at Amortized Cost [Line Items]
Loans	2,940,353	2,006,876
ACL Allocation	30,142	21,632	37,554	12,369	12,369
Mortgage warehouse
Servicing Asset at Amortized Cost [Line Items]
Loans	446,227	565,645
Consumer
Servicing Asset at Amortized Cost [Line Items]
Loans	7,806	11,998
ACL Allocation	112	233	$ 371	$ 122	$ 122
Real Estate
Servicing Asset at Amortized Cost [Line Items]
Loans	23,344	20,673
Real Estate \| Real Estate \| Commercial Real Estate \| OOCRE
Servicing Asset at Amortized Cost [Line Items]
Loans	1,193	0
Real Estate \| Real Estate \| Commercial Real Estate \| NOOCRE
Servicing Asset at Amortized Cost [Line Items]
Loans	20,896	17,908
Real Estate \| Commercial
Servicing Asset at Amortized Cost [Line Items]
Loans	1,240	1,702
Real Estate \| Consumer
Servicing Asset at Amortized Cost [Line Items]
Loans	15	1,063
Collateral Pledged
Servicing Asset at Amortized Cost [Line Items]
ACL Allocation	2,663	7,808
Collateral Pledged \| Real Estate \| Commercial Real Estate \| OOCRE
Servicing Asset at Amortized Cost [Line Items]
ACL Allocation	129	0
Collateral Pledged \| Real Estate \| Commercial Real Estate \| NOOCRE
Servicing Asset at Amortized Cost [Line Items]
ACL Allocation	2,138	7,808
Collateral Pledged \| Commercial
Servicing Asset at Amortized Cost [Line Items]
ACL Allocation	396	0
Collateral Pledged \| Consumer
Servicing Asset at Amortized Cost [Line Items]
ACL Allocation	$ 0	$ 0

INCOME TAXES - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefits at the beginning of the year:	$ 503	$ 549	$ 0
Gross increases, related to tax positions taken in a prior period	0	0	281
Gross decreases, related to tax positions taken in a prior period	(44)	(101)	0
Gross increases, related to tax positions taken in current period	75	55	268
Settlement with taxing authority	(241)	0	0
Unrecognized tax benefits at the end of the year	$ 293	$ 503	$ 549

LHI AND ACL - Trouble Debt Restructuring (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) loan	Dec. 31, 2021 USD ($) loan
Troubled Debt Restructuring
Recorded investment in TDRs	$ 13,666	$ 25,518
Adjusted Payment Structure	29
Payment Deferrals	946
Total Modifications	$ 975
Number of Loans \| loan	3	1
Loans modified as TDR \| loan	0	0
Interest income that would have been recorded if there was no modification	$ 742	$ 778
Commercial
Troubled Debt Restructuring
Adjusted Payment Structure	0
Payment Deferrals	946
Total Modifications	$ 946
Number of Loans \| loan	1
Consumer
Troubled Debt Restructuring
Adjusted Payment Structure	$ 29
Payment Deferrals	0
Total Modifications	$ 29
Number of Loans \| loan	2

LHI AND ACL - Past Due (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Non-Accrual and Past Due Loans
Loans	$ 9,499,629	$ 7,341,143
Total 90 days past due and still accruing	125	235
Nonaccrual With No ACL	25,275	20,428
PCD
Non-Accrual and Past Due Loans
Loans	39,013	58,093
Total Past Due
Non-Accrual and Past Due Loans
Loans	48,300	32,284
30 to 59 Days Past Due
Non-Accrual and Past Due Loans
Loans	18,378	9,207
60 to 89 Days Past Due
Non-Accrual and Past Due Loans
Loans	5,614	5,465
90 Days or Greater
Non-Accrual and Past Due Loans
Loans	24,308	17,612
PPP loans excluded	669	206
Total Current
Non-Accrual and Past Due Loans
Loans	9,412,316	7,250,766
Real Estate \| Construction and Land
Non-Accrual and Past Due Loans
Loans	1,787,400	1,062,144
Total 90 days past due and still accruing	0	0
Real Estate \| Construction and Land \| PCD
Non-Accrual and Past Due Loans
Loans	1,544	2,348
Real Estate \| Construction and Land \| Total Past Due
Non-Accrual and Past Due Loans
Loans	3,232	0
Real Estate \| Construction and Land \| 30 to 59 Days Past Due
Non-Accrual and Past Due Loans
Loans	1,121	0
Real Estate \| Construction and Land \| 60 to 89 Days Past Due
Non-Accrual and Past Due Loans
Loans	2,111	0
Real Estate \| Construction and Land \| 90 Days or Greater
Non-Accrual and Past Due Loans
Loans	0	0
Real Estate \| Construction and Land \| Total Current
Non-Accrual and Past Due Loans
Loans	1,782,624	1,059,796
Real Estate \| Farmland
Non-Accrual and Past Due Loans
Loans	43,500	55,827
Total 90 days past due and still accruing	0	0
Real Estate \| Farmland \| Total Past Due
Non-Accrual and Past Due Loans
Loans	0	0
Real Estate \| Farmland \| 30 to 59 Days Past Due
Non-Accrual and Past Due Loans
Loans	0	0
Real Estate \| Farmland \| 60 to 89 Days Past Due
Non-Accrual and Past Due Loans
Loans	0	0
Real Estate \| Farmland \| 90 Days or Greater
Non-Accrual and Past Due Loans
Loans	0	0
Real Estate \| Farmland \| Total Current
Non-Accrual and Past Due Loans
Loans	43,500	55,827
Real Estate \| 1 - 4 family residential \| Residential Real Estate
Non-Accrual and Past Due Loans
Loans	894,456	542,566
Total 90 days past due and still accruing	123	24
Nonaccrual With No ACL	862	990
Real Estate \| 1 - 4 family residential \| Residential Real Estate \| PCD
Non-Accrual and Past Due Loans
Loans	1,180	1,178
Real Estate \| 1 - 4 family residential \| Residential Real Estate \| Total Past Due
Non-Accrual and Past Due Loans
Loans	4,947	3,081
Real Estate \| 1 - 4 family residential \| Residential Real Estate \| 30 to 59 Days Past Due
Non-Accrual and Past Due Loans
Loans	4,319	2,073
Real Estate \| 1 - 4 family residential \| Residential Real Estate \| 60 to 89 Days Past Due
Non-Accrual and Past Due Loans
Loans	129	0
Real Estate \| 1 - 4 family residential \| Residential Real Estate \| 90 Days or Greater
Non-Accrual and Past Due Loans
Loans	499	1,008
Real Estate \| 1 - 4 family residential \| Residential Real Estate \| Total Current
Non-Accrual and Past Due Loans
Loans	888,329	538,307
Real Estate \| Multi-family residential \| Residential Real Estate
Non-Accrual and Past Due Loans
Loans	322,679	310,241
Total 90 days past due and still accruing	0	0
Real Estate \| Multi-family residential \| Residential Real Estate \| Total Past Due
Non-Accrual and Past Due Loans
Loans	1,000	0
Real Estate \| Multi-family residential \| Residential Real Estate \| 30 to 59 Days Past Due
Non-Accrual and Past Due Loans
Loans	1,000	0
Real Estate \| Multi-family residential \| Residential Real Estate \| 60 to 89 Days Past Due
Non-Accrual and Past Due Loans
Loans	0	0
Real Estate \| Multi-family residential \| Residential Real Estate \| 90 Days or Greater
Non-Accrual and Past Due Loans
Loans	0	0
Real Estate \| Multi-family residential \| Residential Real Estate \| Total Current
Non-Accrual and Past Due Loans
Loans	321,679	310,241
Real Estate \| OOCRE \| Commercial Real Estate
Non-Accrual and Past Due Loans
Loans	715,829	665,537
Total 90 days past due and still accruing	0	0
Nonaccrual With No ACL	8,545	13,824
Real Estate \| OOCRE \| Commercial Real Estate \| PCD
Non-Accrual and Past Due Loans
Loans	19,817	27,564
Real Estate \| OOCRE \| Commercial Real Estate \| Total Past Due
Non-Accrual and Past Due Loans
Loans	5,721	17,125
Real Estate \| OOCRE \| Commercial Real Estate \| 30 to 59 Days Past Due
Non-Accrual and Past Due Loans
Loans	3,342	4,538
Real Estate \| OOCRE \| Commercial Real Estate \| 60 to 89 Days Past Due
Non-Accrual and Past Due Loans
Loans	1,186	965
Real Estate \| OOCRE \| Commercial Real Estate \| 90 Days or Greater
Non-Accrual and Past Due Loans
Loans	1,193	11,622
Real Estate \| OOCRE \| Commercial Real Estate \| Total Current
Non-Accrual and Past Due Loans
Loans	690,291	620,848
Real Estate \| NOOCRE \| Commercial Real Estate
Non-Accrual and Past Due Loans
Loans	2,341,379	2,120,309
Total 90 days past due and still accruing	0	0
Nonaccrual With No ACL	13,178	191
Real Estate \| NOOCRE \| Commercial Real Estate \| PCD
Non-Accrual and Past Due Loans
Loans	12,748	18,200
Real Estate \| NOOCRE \| Commercial Real Estate \| Total Past Due
Non-Accrual and Past Due Loans
Loans	26,052	1,128
Real Estate \| NOOCRE \| Commercial Real Estate \| 30 to 59 Days Past Due
Non-Accrual and Past Due Loans
Loans	5,156	936
Real Estate \| NOOCRE \| Commercial Real Estate \| 60 to 89 Days Past Due
Non-Accrual and Past Due Loans
Loans	0	0
Real Estate \| NOOCRE \| Commercial Real Estate \| 90 Days or Greater
Non-Accrual and Past Due Loans
Loans	20,896	192
Real Estate \| NOOCRE \| Commercial Real Estate \| Total Current
Non-Accrual and Past Due Loans
Loans	2,302,579	2,100,981
Commercial
Non-Accrual and Past Due Loans
Loans	2,940,353	2,006,876
Total 90 days past due and still accruing	0	191
Nonaccrual With No ACL	2,521	4,207
Commercial \| PCD
Non-Accrual and Past Due Loans
Loans	3,701	8,626
Commercial \| Total Past Due
Non-Accrual and Past Due Loans
Loans	6,951	9,628
Commercial \| 30 to 59 Days Past Due
Non-Accrual and Past Due Loans
Loans	3,088	1,525
Commercial \| 60 to 89 Days Past Due
Non-Accrual and Past Due Loans
Loans	2,188	4,395
Commercial \| 90 Days or Greater
Non-Accrual and Past Due Loans
Loans	1,675	3,708
Commercial \| Total Current
Non-Accrual and Past Due Loans
Loans	2,929,701	1,988,622
Mortgage warehouse
Non-Accrual and Past Due Loans
Loans	446,227	565,645
Total 90 days past due and still accruing	0	0
Mortgage warehouse \| Total Past Due
Non-Accrual and Past Due Loans
Loans	0	0
Mortgage warehouse \| 30 to 59 Days Past Due
Non-Accrual and Past Due Loans
Loans	0	0
Mortgage warehouse \| 60 to 89 Days Past Due
Non-Accrual and Past Due Loans
Loans	0	0
Mortgage warehouse \| 90 Days or Greater
Non-Accrual and Past Due Loans
Loans	0	0
Mortgage warehouse \| Total Current
Non-Accrual and Past Due Loans
Loans	446,227	565,645
Consumer
Non-Accrual and Past Due Loans
Loans	7,806	11,998
Total 90 days past due and still accruing	2	20
Nonaccrual With No ACL	169	1,216
Consumer \| PCD
Non-Accrual and Past Due Loans
Loans	23	177
Consumer \| Total Past Due
Non-Accrual and Past Due Loans
Loans	397	1,322
Consumer \| 30 to 59 Days Past Due
Non-Accrual and Past Due Loans
Loans	352	135
Consumer \| 60 to 89 Days Past Due
Non-Accrual and Past Due Loans
Loans	0	105
Consumer \| 90 Days or Greater
Non-Accrual and Past Due Loans
Loans	45	1,082
Consumer \| Total Current
Non-Accrual and Past Due Loans
Loans	7,386	10,499
Financial Asset Acquired with Credit Deterioration
Non-Accrual and Past Due Loans
Nonaccrual With No ACL	13,178
Financial Asset Acquired with Credit Deterioration \| PCD
Non-Accrual and Past Due Loans
Loans	39,013	58,093
Financial Asset Acquired with Credit Deterioration \| 90 Days or Greater
Non-Accrual and Past Due Loans
Total 90 days past due and still accruing	2,004	9,345
Financial Asset Acquired with Credit Deterioration \| Real Estate \| Construction and Land \| PCD
Non-Accrual and Past Due Loans
Loans	1,544	2,348
Financial Asset Acquired with Credit Deterioration \| Real Estate \| Farmland \| PCD
Non-Accrual and Past Due Loans
Loans	0	0
Financial Asset Acquired with Credit Deterioration \| Real Estate \| 1 - 4 family residential \| Residential Real Estate \| PCD
Non-Accrual and Past Due Loans
Loans	1,180	1,178
Financial Asset Acquired with Credit Deterioration \| Real Estate \| Multi-family residential \| Residential Real Estate \| PCD
Non-Accrual and Past Due Loans
Loans	0	0
Financial Asset Acquired with Credit Deterioration \| Real Estate \| OOCRE \| Commercial Real Estate \| PCD
Non-Accrual and Past Due Loans
Loans	19,817	27,564
Financial Asset Acquired with Credit Deterioration \| Real Estate \| NOOCRE \| Commercial Real Estate \| PCD
Non-Accrual and Past Due Loans
Loans	12,748	18,200
Financial Asset Acquired with Credit Deterioration \| Commercial \| PCD
Non-Accrual and Past Due Loans
Loans	3,701	8,626
Financial Asset Acquired with Credit Deterioration \| Mortgage warehouse \| PCD
Non-Accrual and Past Due Loans
Loans	0	0
Financial Asset Acquired with Credit Deterioration \| Consumer \| PCD
Non-Accrual and Past Due Loans
Loans	$ 23	$ 177

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Accounting Standards Codification ("ASC")

Segment Reporting

Reclassifications

Certain items in the Company's prior year financial statements were reclassified to conform to the current presentation.

Use of Estimates

Cash and Cash Equivalents

Cash and cash equivalents include amounts due from banks, interest-bearing deposits in other banks and federal funds sold.

Debt Securities

Transfers of debt securities from AFS to HTM

Equity Securities

Equity SecuritiesEquity securities are recorded at fair value, with unrealized gains and losses included in other noninterest income. The Company measures equity securities that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Dividends on equity securities are recorded in interest income for equity securities and other investments. Realized gains and losses are recorded on the sale of equity securities in gain (loss) on sales of securities.

ACL

ACL – AFS Debt Securities

ACL – HTM Debt Securities

ACL - Loans

The ACL is a valuation account that is deducted from the LHI amortized cost basis to present the net amount expected to be collected on LHI.

The Company has identified the following pools of financial assets with similar risk characteristics for measuring expected credit losses:

Real Estate — This category of loans consists of the following loan types:

Farmland — These loans are principally loans to purchase farmland.

Consumer — This category of loans is used for personal use typically for consumer purposes.

Collateral Dependent Financial Assets

Troubled-debt Restructurings (TDRs)

Contractual Term

Discounted Cash Flow Method

Loss-Rate Method

Probability of Default/Loss Given Default Method

FHLB and FRB Stock

LHFS

Fair Value Option

Gain on Sale of Loans

Gain on Sale of Guaranteed Portion of Small Business Administration ("SBA") and United States Department of Agriculture ("USDA") Loans

Gain on Sale of Mortgage LHFS

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

Adoption of New Accounting Standard and Recent Accounting Pronouncements

Adoption of New Accounting Standard

The following table illustrates the impact of ASC 326.


	January 1, 2020
	As Reported Under ASC 326		Pre-ASC 326 Adoption		Impact of ASC 326 Adoption
Assets:
ACL on debt securities HTM	$	—	$	—	$	—
ACL on loans
Construction and land	3,760		3,822		(62)
Farmland	65		61		4
1 - 4 family residential	6,002		1,378		4,624
Multi-family residential	2,593		1,965		628
Owner Occupied Commercial Real Estate ("OOCRE")	13,066		1,978		11,088
Non-Owner Occupied Commercial Real Estate ("NOOCRE")	15,314		8,139		7,175
Commercial	27,729		12,369		15,360
Consumer	442		122		320
ACL on loans	$	68,971	$	29,834	$	39,137

Liabilities:
ACL on OBS credit exposures	$	1,718	$	878	$	840

NEW ACCOUNTING PRONOUNCEMENTS

ASU 2022-01, “Derivatives and Hedging (Topic 815)” (“ASU 2022-01”) clarifies the guidance in ASC 815 on fair value hedge accounting of interest rate risk for portfolios and financial assets. Among other things, the amended guidance established the “last-of-layer” method for making the fair value hedge accounting for these portfolios more accessible and renamed that method the “portfolio layer” method. ASU 2022-01 is effective January 1, 2023. The adoption of ASU 2022-01 is not expected to have a significant impact on our financial statements.

ASU 2022-02, “Financial Instruments - Credit Losses (Topic 326)” (“ASU 2022-02”) eliminates the guidance on troubled debt restructurings and requires entities to evaluate all loan modifications to determine if they result in a new loan or a continuation of the existing loan. ASU 2022-02 also requires that entities disclose current-period gross charge-offs by year of origination for loans and leases. ASU 2022-02 is effective for the Company for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. The adoption of ASU 2022-02 is not expected to have a significant impact on our financial statements.

ASU No. 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848” ASU 2022-06 extends the period of time preparers can utilize the reference rate reform relief guidance provided by ASU 2020-04 and ASU 2021-01. ASU 2022-06, which was effective upon issuance, defers the sunset date of this prior guidance from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the relief guidance in Topic 848. The adoption of ASU 2022-06 did not significantly impact our financial statements.

LHI

Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due in accordance with the terms of the loan agreement. The accrual of interest on loans is discontinued when, in management’s opinion, the borrower may be unable to meet payment obligations as they come due, as well as when required by regulatory provisions. Loans may be placed on nonaccrual status regardless of whether or not such loans are considered past due. When a loan is placed on nonaccrual status, all interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Under the cash-basis method, interest income is recorded when the payment is received in cash. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Acquired Loans

The subsequent measurement of expected credit losses for all acquired loans is the same as the subsequent measurement of expected credit losses for originated loans.

Loan Commitments and ACL on Off-Balance Sheet Credit Exposures

Derivatives Financial Instruments

Derivative Financial Instruments (Not Designated as Accounting Hedges)

Derivative Financial Instruments (Designated as Accounting Hedges)

Transfers of Financial Assets

Equity Method Investments

Bank Premises and Equipment


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

Leases

Securities Sold Under Agreements to Repurchase

OREO

Bank-Owned Life Insurance

Goodwill and Intangible Assets


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

Servicing Assets

Marketing Expense

Marketing ExpenseThe Company expenses all marketing costs as they are incurred.

Income Taxes

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

Fair Value of Financial Instruments

Fair Values of Financial Instruments

Revenue from Contracts with Customer

Revenue from Contracts with Customers

Stock Based Compensation

Treasury Stock

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

Comprehensive Income

Business Combinations

Earnings Per Share ("EPS")

Earnings Per Share ("EPS")EPS are based upon the weighted-average number of shares outstanding.

PARENT COMPANY ONLY FINANCIAL STATEMENTS - Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
ASSETS
Cash and cash equivalents	$ 436,077	$ 379,784
Investment in unconsolidated subsidiaries	1,018	1,018
Other assets	250,149	138,851
Total assets	12,154,361	9,757,249
LIABILITIES AND STOCKHOLDERS’ EQUITY
Total liabilities	10,704,588	8,442,170
Stockholders’ equity:
Common stock	607	560
Additional paid-in capital ("APIC")	1,306,852	1,142,758
Retained earnings	379,299	275,273
Accumulated other comprehensive income	(69,403)	64,070
Treasury stock	(167,582)	(167,582)
Total stockholders’ equity	1,449,773	1,315,079	$ 1,203,376	$ 1,190,797
Total liabilities and stockholders’ equity	12,154,361	9,757,249
Veritex Holdings, Inc.
ASSETS
Cash and cash equivalents	18,278	44,507
Investment in unconsolidated subsidiaries	1,650,727	1,496,310
Other assets	13,043	3,736
Total assets	1,682,048	1,544,553
LIABILITIES AND STOCKHOLDERS’ EQUITY
Other liabilities	3,500	1,710
Other borrowings	228,775	227,764
Total liabilities	232,275	229,474
Stockholders’ equity:
Common stock	607	560
Additional paid-in capital ("APIC")	1,306,852	1,142,758
Retained earnings	379,299	275,273
Accumulated other comprehensive income	(69,403)	64,070
Treasury stock	(167,582)	(167,582)
Total stockholders’ equity	1,449,773	1,315,079
Total liabilities and stockholders’ equity	$ 1,682,048	$ 1,544,553

SECURITIES - Securities (Details) - USD ($)	12 Months Ended
SECURITIES - Securities (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]
Equity securities	$ 9,792,000	$ 11,038,000
Realized gain (loss) on equity securities	0	0	$ 8,000
Unrealized (loss) gain recognized on equity securities with a readily determinable fair value	(1,246,000)	(325,000)	$ 480,000
Equity securities without a readily determinable fair value	10,072,000	4,355,000
Securities purchased under agreement to resell	0	102,288,000
Interest income, securities purchased under agreements to resell	$ 1,386,000	$ 529,000

SECURITIES - Carrying Amount and Fair Values (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Jan. 01, 2020
AFS
Amortized cost	$ 1,195,694	$ 961,455
Gross unrealized gains	1,760	36,737
Gross unrealized losses	101,162	5,134
ACL	0	0
Fair Value	1,096,292	993,058
HTM
Amortized cost	186,168	59,436
Gross unrealized gains	6	2,620
Gross unrealized losses	27,393	610
ACL	0	0	$ 0
Fair Value	158,781	61,446
Corporate bonds
AFS
Amortized cost	268,179	198,396
Gross unrealized gains	1,445	10,294
Gross unrealized losses	17,379	178
ACL	0	0
Fair Value	252,245	208,512
Municipal securities
AFS
Amortized cost	49,886	116,100
Gross unrealized gains	3	8,261
Gross unrealized losses	4,198	431
ACL	0	0
Fair Value	45,691	123,930
HTM
Amortized cost	113,657	28,179
Gross unrealized gains	6	2,015
Gross unrealized losses	14,756	102
ACL	0	0
Fair Value	98,907	30,092
Mortgage-backed securities
AFS
Amortized cost	156,408	124,230
Gross unrealized gains	23	4,326
Gross unrealized losses	17,420	1,489
ACL	0	0
Fair Value	139,011	127,067
HTM
Amortized cost	36,342	25,767
Gross unrealized gains	0	45
Gross unrealized losses	6,753	508
ACL	0	0
Fair Value	29,589	25,304
Collateralized mortgage obligations
AFS
Amortized cost	609,456	424,174
Gross unrealized gains	0	12,240
Gross unrealized losses	55,850	2,350
ACL	0	0
Fair Value	553,606	434,064
HTM
Amortized cost	36,169	5,490
Gross unrealized gains	0	560
Gross unrealized losses	5,884	0
ACL	0	0
Fair Value	30,285	6,050
Asset-backed securities
AFS
Amortized cost	42,015	53,466
Gross unrealized gains	289	1,616
Gross unrealized losses	2,613	519
ACL	0	0
Fair Value	39,691	54,563
Collateralized loan obligations
AFS
Amortized cost	69,750	45,089
Gross unrealized gains	0	0
Gross unrealized losses	3,702	167
ACL	0	0
Fair Value	$ 66,048	$ 44,922

STOCK AND INCENTIVE PLANS

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

STOCK AND INCENTIVE PLANS

2010 Stock Option and Equity Incentive Plan

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

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

During the years ending December 31, 2022, 2021 and 2020, the Company did not award any restricted stock units, non-performance based stock options or performance-based stock options or other awards under the 2010 Incentive Plan.

Stock based compensation expense is measured based upon the fair market value of the award at the grant date and is recognized ratably over the period during which the shares are earned (the requisite service period). For the years ended December 31, 2022, 2021 and 2020, there was no stock compensation expense related to the 2010 Incentive Plan.

A summary of the status of options granted under the 2010 Incentive Plan at December 31, 2022, 2021 and 2020 and changes during the years then ended is presented below:


	2010 Incentive Plan
	Nonperformance-based stock options
	Shares Underlying Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at December 31, 2019	257,500	$	10.28	1.37 years



Exercised	(237,500)	10.12
Outstanding at December 31, 2020	20,000	$	10.09	1.06 years



Exercised	(19,000)	10.00
Outstanding at December 31, 2021	1,000	$	10.43	1.07 years




Outstanding and exercisable at December 31, 2022	1,000	$	10.43	1.07 years	$	43

As of December 31, 2022, 2021, and 2020 there was no unrecognized stock compensation expense related to non-performance based stock options.

A summary of the fair value of the Company’s stock options exercised vested under the 2010 Incentive Plan as of December 31, 2022, 2021 and 2020 is presented below:


	Fair Value of Options Exercised or Restricted Stock Units Vested as of December 31,
	2022		2021		2020
Nonperformance-based stock options exercised	$	—	$	568	$	6,579

2022 Amended Plan and Green Acquired Omnibus Plans

At the Company’s 2022 annual meeting of shareholders, the Company sought approval from its shareholders to authorize the amendment and restatement of the 2019 Amended and Restated Omnibus Incentive Plan (now referred to as the “2022 Equity Plan”) to, among other things, increase the aggregate number of shares that are available for grant thereunder, (the “Shareholder Approval”). Other terms amended in the 2022 Equity Plan included adding a one-year minimum vesting requirement on equity awards and clarifying certain provisions with respect to (i) the Compensation Committee’s authority and responsibilities in the administration of the 2022 Equity Plan, (ii) prohibitions against (x) dividend payments and voting rights with respect to any unvested awards, (y) the repricing of stock options and SARs, and (z) transfers of awards, and (iii) the definitions of termination of service, disability, and retirement. The Compensation Committee of the Board approved the amendment and restatement of the 2022 Equity Plan in May 2022 and Shareholder Approval was received in May 2022.

2022 Grants of Restricted Stock Units

In the year ended December 31, 2022, he Company granted non-performance-based RSUs and performance-based restricted stock units (“PSUs”) under the 2022 Equity Plan and the Veritex (Green) 2014 Omnibus Equity Incentive Plan (the “Veritex (Green) 2014 Plan”). The majority of the RSUs granted to employees during the year ended December 31, 2022 with annual graded vesting over a three year period from the grant date.

The PSUs granted in February 2022 are subject to a service, performance and market condition. The performance and market condition determine the number of awards to vest. The service period is from February 1, 2022 to January 31, 2025, the performance condition performance period is from January 1, 2022 to December 31, 2024 and the market condition performance period is from February 1, 2022 to January 31, 2025. A Monte Carlo simulation was used to estimate the fair value of PSUs on the grant date.

Stock Compensation Expense

Stock compensation expense of options, RSUs and PSUs granted under the 2022 Equity Plan and the Veritex (Green) 2014 Plan was as follows:


	Year ended December 31,
	2022		2021
2022 Equity Plan	$	11,109	$	8,614
Veritex (Green) 2014 Plan	820		1,959

2022 Equity Plan

A summary of the status of the Company’s stock options under the 2022 Equity Plan as of December 31, 2022, 2021 and 2020, and changes during the years then ended, is as follows:


	2022 Equity Plan
	Nonperformance-based stock options
	Equity Awards
	Shares Underlying Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at December 31, 2019	849,768	$	23.61	8.24 years
Granted	185,025	26.73
Forfeited	(25,053)	27.37

Exercised	(33,939)	19.10
Outstanding at December 31, 2020	975,801	$	24.26	7.45 years
Granted	500	$	36.54

Forfeited	(13,996)	25.93

Exercised	(252,262)	23.87
Outstanding at December 31, 2021	710,043	$	24.38	6.91 years
Granted	1,500	$	31.26



Exercised	(54,049)	23.51
Outstanding at December 31, 2022	657,494	$	24.47	5.58 years	$	2,547
Options exercisable at December 31, 2022	550,454	$	24.64	5.30 years	$	2,019
Weighted average fair value of options granted during the period		$	31.26

As of December 31, 2022, 2021 and 2020 there was $172, $803 and $2,470 of total unrecognized compensation expense related to stock options awarded under the 2022 Equity Plan, respectively. The unrecognized compensation expense at December 31, 2022 is expected to be recognized over the remaining weighted average requisite service period of 0.31 years.

A summary of the status of the Company’s RSUs under the 2022 Equity Plan as of December 31, 2022, 2021 and 2020, and changes during the year then ended is as follows:


	2022 Equity Plan
	RSUs
	Equity Awards
	Units	Weighted Average Grant Date Fair Value
Outstanding at December 31, 2019	175,688	$	21.65
Granted	360,400	20.38
Vested into shares	(93,377)	24.73
Forfeited	(1,579)	29.13

Outstanding at December 31, 2020	441,132	$	20.39
Granted	281,149	28.68

Vested into shares	(108,732)	24.19
Forfeited	(15,498)	28.47
Outstanding at December 31, 2021	598,051	$	23.39
Granted	546,405	33.79

Vested into shares	(175,159)	27.88
Forfeited	(14,193)	33.18
Outstanding at December 31, 2022	955,104	$	28.38

A summary of the status of the Company’s PSUs under the 2022 Equity Plan as of December 31, 2022, 2021 and 2020, and changes during the years then ended is as follows:


	2022 Equity Plan
	PSUs
	Equity Awards
	Units	Weighted Average Grant Date Fair Value
Outstanding at December 31, 2019	63,727	$	22.76
Granted	39,398	25.94
Vested into shares	(1,841)	19.69
Forfeited	(1,089)	19.69
Outstanding at December 31, 2020	100,195	$	23.20
Granted	56,276	25.94

Outstanding at December 31, 2021	156,471	$	24.17
Granted	39,429	40.38
Incremental PSUs granted upon performance conditions met	34,194	23.90
Vested into shares	(103,387)	22.79

Outstanding at December 31, 2022	126,707	$	31.19

As of December 31, 2022, 2021, and 2020 there was $17,160, $10,413 and $8,222 of total unrecognized compensation expense related to RSUs and PSUs awarded under the 2022 Equity Plan, respectively. The unrecognized compensation expense at December 31, 2022 is expected to be recognized over the remaining weighted average requisite service period of 2.54 years.

A summary of the fair value of the Company’s stock options exercised and restricted stock units vested under the 2022 Equity Plan as of December 31, 2022, 2021 and 2020 is presented below:


	Fair Value of Options Exercised, RSUs and PSUs Vested as of December 31,
	2022		2021		2020
Nonperformance-based stock options exercised	$	792	$	9,214	$	954
RSUs vested	6,356		2,781		2,529
PSUs vested	4,040		—		36

Veritex (Green) 2014 Plan

A summary of the status of the Company’s stock options under the Veritex (Green) 2014 Plan as of December 31, 2022, 2021 and 2020 changes during the years then ended is as follows:


	Veritex (Green) 2014 Plan
	Non-performance Based Stock Options
	Shares Underlying Options	Weighted Exercise Price		Weighted Average Contractual Term	Aggregate Intrinsic Value
Outstanding at December 31, 2019	386,969	$	19.30
Granted	31,075	29.13
Forfeited	(30,711)	20.92

Exercised	(35,333)	19.42
Outstanding at December 31, 2020	352,000	$	19.99
Forfeited	(7,245)	21.38
Exercised	(126,951)	20.55
Outstanding at December 31, 2021	217,804	$	19.62
Exercised	(62,592)	19.59
Outstanding at December 31, 2022	155,212	$	19.83	5.20 years	$	1,321
Options exercisable at December 31, 2022	145,696	$	19.16	5.07 years	$1,321

As of December 31, 2022 there was no unrecognized compensation expense related to options awarded under the Veritex (Green) 2014 Plan. As of December 31, 2021 and 2020 there was $100 and $626, respectively, of total unrecognized compensation expense related to options awarded under the Veritex (Green) 2014 Plan.

A summary of the status of the Company’s RSUs under the Veritex (Green) 2014 Plan as of December 31, 2022, 2021 and 2020 and changes during the years then ended, is as follows:


	Veritex (Green) 2014 Plan
	RSUs
	Units	Weighted Average Grant Date Fair Value
Outstanding at December 31, 2019	116,250	$	21.38
Granted	93,918	21.36


Outstanding at Vested into shares	(38,744)	21.38
Outstanding at Forfeited	(15,237)	23.62
Outstanding at December 31, 2020	156,187	$	22.64
Granted	5,692	26.12
Vested into shares	(33,335)	21.38
Forfeited	(5,760)	25.21
Outstanding at December 31, 2021	122,784	$	21.13
Granted	4,231	40.38
Vested into shares	(32,931)	21.80
Forfeited	(7,851)	29.13
Outstanding at December 31, 2022	86,233	$	21.09

A summary of the status of the Company’s PSUs under the Veritex (Green) 2014 Plan as of December 31, 2022, 2021 and 2020 and changes during the years then ended, is as follows:


	Veritex (Green) 2014 Plan
	PSUs
	Units	Weighted Average Grant Date Fair Value
Outstanding at December 31, 2019	25,320	$	21.38
Granted	8,531	25.94

Forfeited	(3,123)	19.69
Outstanding at December 31, 2020	30,728	$	21.43
Granted	6,231	25.94

Forfeited	(1,060)	19.69
Outstanding at December 31, 2021	35,899	$	22.26
Granted	4,411	40.38
Incremental PSUs granted upon performance condition met	10,566	19.69
Vested into shares	(31,703)	21.38

Outstanding at December 31, 2022	19,173	$	30.74

As of December 31, 2022, 2021 and 2020, there was $3,825, $1,252 and $2,484, respectively, of total unrecognized compensation related to outstanding RSUs and PSUs awarded under the Veritex (Green) 2014 Plan to be recognized over a remaining weighted average requisite service period of 1.69 years.

A summary of the fair value of the Company’s stock options exercised and RSUs vested under the Veritex (Green) 2014 Plan during the year ended December 31, 2022, 2021 and 2020 is presented below:


	Fair Value of Options Exercised or Restricted Stock Units Vested in the year ended December 31,
	2022		2021		2020
Non-performance-based stock options exercised	$	1,157	$	4,599	$	1,021
RSUs vested	1,312		713		828
PSUs vested	1,261		—		—

Green 2010 Plan

In addition to the Veritex (Green) 2014 Plan discussed earlier in this Note, the Company assumed the Green Bancorp Inc. 2010 Stock Option Plan (“Green 2010 Plan”).

A summary of the status of the Company’s stock options under the Green 2010 Plan as of December 31, 2022, 2021 and 2020 and changes during the years then ended, is as follows:


	Green 2010 Plan
	Non-performance Based Stock Options
	Shares Underlying Options	Weighted Exercise Price		Weighted Average Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1, 2019	571,735	$	10.64
Exercised	(440,652)	10.35
Outstanding at December 31, 2020	131,083	$	11.60



Forfeited	(2,198)	13.69
Exercised	(62,742)	10.51
Outstanding at December 31, 2021	66,143	$	12.56
Cancelled	(21,235)	11.40


Exercised	(1,746)	13.20
Outstanding and exercisable at December 31, 2022	43,162	$	13.11	2.03 years	$	646

A summary of the fair value of the Company’s stock options exercised under the Green 2010 Plan during the year ended December 31, 2022, 2021, and 2020 is presented below:


	Fair Value of Options Exercised in the year ended December 31,
	2022		2021		2020
Non-performance-based stock options exercised	$	47	$	1,838	$	12,231

LHI AND ACL - Balance Sheet Summary (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Jan. 01, 2020	Dec. 31, 2019
Loans and Allowance for Loan Losses
Loans	$ 9,499,629	$ 7,341,143
Deferred loan fees, net	(18,973)	(9,489)
ACL	(91,052)	(77,754)	$ (105,084)	$ (29,834)	$ (29,834)
LHI carried at amortized cost, net	9,389,604	7,253,900
PPP Loans	1,995	53,369
Total LHI, net	9,391,599	7,307,269
Discount on retained loans from sale	5,238	3,430
Real Estate \| Construction and Land
Loans and Allowance for Loan Losses
Loans	1,787,400	1,062,144
ACL	(13,120)	(7,293)	(7,768)	(3,822)	(3,821)
Real Estate \| Farmland
Loans and Allowance for Loan Losses
Loans	43,500	55,827
ACL	(127)	(187)	(56)	(61)	(62)
Real Estate \| Residential Real Estate
Loans and Allowance for Loan Losses
Discount on retained loans from sale	4,135
Purchase of real estate loans	$ 223,924
Remaining discount amortization period	5 years
Real Estate \| Residential Real Estate \| 1 - 4 family residential
Loans and Allowance for Loan Losses
Loans	$ 894,456	542,566
ACL	(9,533)	(5,982)	(8,148)	(1,378)	(2,143)
Real Estate \| Residential Real Estate \| Multi-family residential
Loans and Allowance for Loan Losses
Loans	322,679	310,241
ACL	(2,607)	(2,664)	(6,231)	(1,965)	(1,200)
Real Estate \| Commercial Real Estate \| OOCRE
Loans and Allowance for Loan Losses
Loans	715,829	665,537
ACL	(8,707)	(9,215)	(9,719)	(1,978)	(1,991)
Real Estate \| Commercial Real Estate \| NOOCRE
Loans and Allowance for Loan Losses
Loans	2,341,379	2,120,309
ACL	(26,704)	(30,548)	(35,237)	(8,139)	(8,126)
Commercial
Loans and Allowance for Loan Losses
Loans	2,940,353	2,006,876
ACL	(30,142)	(21,632)	(37,554)	(12,369)	(12,369)
Mortgage warehouse
Loans and Allowance for Loan Losses
Loans	446,227	565,645
Consumer
Loans and Allowance for Loan Losses
Loans	7,806	11,998
ACL	$ (112)	$ (233)	$ (371)	$ (122)	$ (122)

CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS (Tables)

12 Months Ended

Dec. 31, 2022

Regulatory Capital Requirements under Banking Regulations [Abstract]

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

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


	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
As of December 31, 2022
Total capital (to risk-weighted assets "RWA")
Company	$	1,395,904	11.63	%	$	960,209	8.0	%	n/a		n/a
Bank	1,368,082		11.41		959,216		8.0		$	1,199,020	10.0	%
Tier 1 capital (to RWA)
Company	1,121,021		9.34		720,142		6.0		n/a		n/a
Bank	1,291,288		10.77		719,381		6.0		959,174		8.0
Common equity tier 1 (to RWA)
Company	1,091,353		9.09		540,274		4.5		n/a		n/a
Bank	1,291,288		10.77		539,535		4.5		779,329		6.5
Tier 1 capital (to average assets)
Company	1,121,021		9.82		456,628		4.0		n/a		n/a
Bank	1,291,288		11.32		456,286		4.0		570,357		5.0
As of December 31, 2021
Total capital (to RWA)
Company	$	1,100,404	11.60	%	$	758,899	8.0	%	n/a		n/a
Bank	1,053,871		11.11		758,863		8.0		$	948,579	10.0	%
Tier 1 capital (to RWA)
Company	843,585		8.89		569,349		6.0		n/a		n/a
Bank	994,351		10.48		569,285		6.0		759,047		8.0
Common equity tier 1 (to RWA)
Company	814,138		8.58		426,995		4.5		n/a		n/a
Bank	994,351		10.48		426,964		4.5		616,725		6.5
Tier 1 capital (to average assets)
Company	843,585		9.05		372,855		4.0		n/a		n/a
Bank	994,351		10.69		372,068		4.0		465,085		5.0

NEW ACCOUNTING PRONOUNCEMENTS	12 Months Ended
NEW ACCOUNTING PRONOUNCEMENTS	Dec. 31, 2022
Accounting Changes and Error Corrections [Abstract]
NEW ACCOUNTING PRONOUNCEMENTS	NEW ACCOUNTING PRONOUNCEMENTS ASU 2022-01, “Derivatives and Hedging (Topic 815)” (“ASU 2022-01”) clarifies the guidance in ASC 815 on fair value hedge accounting of interest rate risk for portfolios and financial assets. Among other things, the amended guidance established the “last-of-layer” method for making the fair value hedge accounting for these portfolios more accessible and renamed that method the “portfolio layer” method. ASU 2022-01 is effective January 1, 2023. The adoption of ASU 2022-01 is not expected to have a significant impact on our financial statements. ASU 2022-02, “Financial Instruments - Credit Losses (Topic 326)” (“ASU 2022-02”) eliminates the guidance on troubled debt restructurings and requires entities to evaluate all loan modifications to determine if they result in a new loan or a continuation of the existing loan. ASU 2022-02 also requires that entities disclose current-period gross charge-offs by year of origination for loans and leases. ASU 2022-02 is effective for the Company for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. The adoption of ASU 2022-02 is not expected to have a significant impact on our financial statements. ASU No. 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848” ASU 2022-06 extends the period of time preparers can utilize the reference rate reform relief guidance provided by ASU 2020-04 and ASU 2021-01. ASU 2022-06, which was effective upon issuance, defers the sunset date of this prior guidance from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the relief guidance in Topic 848. The adoption of ASU 2022-06 did not significantly impact our financial statements.

OFF-BALANCE SHEET LOAN COMMITMENTS - Allowance for Unfunded Commitments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Allowance for Unfunded Commitments [Roll Forward]
Beginning balance for ACL on unfunded commitments	$ 9,266	$ 10,747
Provision (benefit) for credit losses on unfunded commitments	820	(1,481)	$ 9,029
Ending balance of ACL on unfunded commitments	$ 10,086	$ 9,266	$ 10,747

Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Common Stock	Treasury Stock	APIC	Retained Earnings	Retained Earnings Cumulative Effect, Period of Adoption, Adjustment	AOCI
Accounting standards update [Extensible Enumeration]	Accounting Standards Update 2016-13
Beginning balance (in shares) at Dec. 31, 2019			51,063,869
Beginning balance at Dec. 31, 2019	$ 1,190,797		$ 549	$ (94,603)	$ 1,117,879	$ 147,911		$ 19,061
Beginning balance (in shares) at Dec. 31, 2019				(3,812,711)
Increase (Decrease) in Stockholders' Equity
RSU vested, net (in shares)			111,558
RSU vested, net	(665)		$ 1		(666)
Exercise of employee stock options, net (in shares)			501,980
Exercise of employee stock options, net	1,137		$ 5		1,132
Stock warrants exercised (in shares)			10,000
Stock warrants exercised	109				109
Stock buyback (in shares)			(2,349,639)	2,349,639
Stock buyback	(57,470)			$ (57,470)
Stock based compensation	7,983				7,983
Net income	73,883					73,883
Dividends paid	(34,057)					(34,057)
Other comprehensive income (loss)	37,164							37,164
Ending balance (in shares) at Dec. 31, 2020			49,337,768
Ending balance at Dec. 31, 2020	1,203,376	$ (15,505)	$ 555	$ (152,073)	1,126,437	172,232	$ (15,505)	56,225
Ending balance (in shares) at Dec. 31, 2020				(6,162,350)
Increase (Decrease) in Stockholders' Equity
RSU vested, net (in shares)			118,454
RSU vested, net	(577)		$ 2		(579)
Exercise of employee stock options, net (in shares)			376,851
Exercise of employee stock options, net	6,165		$ 3		6,162
Stock warrants exercised (in shares)			15,000
Stock warrants exercised	165				165
Stock buyback (in shares)			(475,744)	475,744
Stock buyback	(15,509)			$ (15,509)
Stock based compensation	10,573				10,573
Net income	139,584					139,584
Dividends paid	(36,543)					(36,543)
Other comprehensive income (loss)	7,845							7,845
Ending balance (in shares) at Dec. 31, 2021			49,372,329
Ending balance at Dec. 31, 2021	$ 1,315,079		$ 560	$ (167,582)	1,142,758	275,273		64,070
Ending balance (in shares) at Dec. 31, 2021	6,638,094			(6,638,094)
Increase (Decrease) in Stockholders' Equity
RSU vested, net (in shares)			259,733
RSU vested, net	$ (3,363)		$ 3		(3,366)
Exercise of employee stock options, net (in shares)			83,419
Exercise of employee stock options, net	1,160		$ 1		1,159
Common stock follow on offering (in shares)			4,314,474
Common stock follow on offering	154,415		$ 43		154,372
Stock based compensation	11,929				11,929
Net income	146,315					146,315
Dividends paid	(42,289)					(42,289)
Other comprehensive income (loss)	(133,473)							(133,473)
Ending balance (in shares) at Dec. 31, 2022			54,029,955
Ending balance at Dec. 31, 2022	$ 1,449,773		$ 607	$ (167,582)	$ 1,306,852	$ 379,299		$ (69,403)
Ending balance (in shares) at Dec. 31, 2022	6,638,094			(6,638,094)

SUPPLEMENTAL STATEMENT OF CASH FLOWS (Tables)

12 Months Ended

Dec. 31, 2022

Supplemental Cash Flow Elements [Abstract]

Schedule of Other Supplemental Cash Flow Information

Other supplemental cash flow information is presented below:


	Year Ended December 31,
	2022		2021		2020
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest	$	77,298	$	37,139	$	58,236
Cash paid for income taxes	36,165		14,349		40,690
Supplemental Disclosures of Non-Cash Flow Information:

Setup of ROU asset and lease liability	$	—	$	6,232	$	4,123

Contingent consideration in connection with acquisitions	—		5,000		—





Transfer of AFS debt securities to HTM debt securities	117,001		—		—
Net foreclosure of OREO and repossessed assets	—		334		2,764
LHI transferred to LHFS	—		10,890		4,511

Schedule of Supplemental Noncash Investing Activities


	Adjustments to Purchase Price Accounting Related to Mergers and Acquisitions
	Year Ended December 31,
	2022		2021		2020
Noncash assets acquired1




LHI	$	(681)	$	29,338	$	—





Intangible assets, net	—		13,913		—
Goodwill	681		32,931		—
Other assets	—		690		—




Total assets	$	—	$	76,872	$	—
Noncash liabilities assumed1



Accounts payable and other liabilities	—		16,350		—






Total liabilities	$	—	$	16,350	$	—


Total equity

1 Noncash assets acquired and noncash liabilities assumed during 2021 related to our acquisition of North Avenue Capital, LLC. ("NAC").

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
ASSETS
Cash and due from banks	$ 60,551	$ 44,023
Interest bearing deposits in other banks	375,526	335,761
Total cash and cash equivalents	436,077	379,784
Debt securities available-for-sale ("AFS"), at fair value	1,096,292	993,058
Debt securities held-to-maturity ("HTM") (fair value of $158,781 and $61,446 at December 31, 2022 and 2021, respectively)	186,168	59,436
Equity securities	19,864	15,393
Securities purchased under agreement to resell	0	102,288
Investment in unconsolidated subsidiaries	1,018	1,018
Federal Home Loan Bank ("FHLB") and Federal Reserve Bank ("FRB") stock	101,568	71,892
Total investments	1,404,910	1,243,085
Loans held for sale ("LHFS")	20,641	26,007
Loans held for investment ("LHI"), Paycheck Protection Program ("PPP") loans, carried at fair value	1,995	53,369
LHI, mortgage warehouse ("MW")	446,227	565,645
LHI, excluding MW and PPP	9,034,429	6,766,009
Less: Allowance for credit losses ("ACL")	(91,052)	(77,754)
Total LHI, net	9,391,599	7,307,269
Bank-owned life insurance ("BOLI")	84,496	83,194
Premises and equipment, net	108,824	109,271
Intangible assets, net of accumulated amortization	53,213	66,017
Goodwill	404,452	403,771
Other assets	250,149	138,851
Total assets	12,154,361	9,757,249
Deposits:
Noninterest-bearing deposits	2,640,617	2,510,723
Interest-bearing transaction and savings deposits	4,395,975	3,276,312
Certificates and other time deposits	2,086,642	1,576,580
Total deposits	9,123,234	7,363,615
Accounts payable and other liabilities	177,579	69,160
Advances from FHLB	1,175,000	777,562
Subordinated debentures and subordinated notes	228,775	227,764
Securities sold under agreement to repurchase	0	4,069
Total liabilities	10,704,588	8,442,170
Stockholders’ equity:
Common stock, $0.01 par value: Authorized shares - 75,000,000 Issued shares - 60,668,049 and 56,010,423 at December 31, 2022 and December 31, 2021, respectively	607	560
Additional paid-in capital ("APIC")	1,306,852	1,142,758
Retained earnings	379,299	275,273
Accumulated other comprehensive (loss) income ("AOCI")	(69,403)	64,070
Treasury stock, 6,638,094 and 6,638,094 shares at cost at December 31, 2022 and 2021, respectively	(167,582)	(167,582)
Total stockholders’ equity	1,449,773	1,315,079
Total liabilities and stockholders’ equity	$ 12,154,361	$ 9,757,249

ADVANCES FROM FHLB - Contractual Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Advance from Federal Home Loan Bank [Abstract]
2023	$ 1,075,000
2024	100,000
Advances from FHLB	$ 1,175,000	$ 777,562

OFF-BALANCE SHEET LOAN COMMITMENTS - Financial Instruments Approximate Value (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Financial instruments with off-balance sheet risk
Total commitments	$ 5,698,408	$ 4,591,760
Commitments to extend credit
Financial instruments with off-balance sheet risk
Total commitments	4,511,671	3,809,509
MW commitments
Financial instruments with off-balance sheet risk
Total commitments	1,088,558	716,370
Standby and commercial letters of credit
Financial instruments with off-balance sheet risk
Total commitments	$ 98,179	$ 65,881

OTHER CREDIT EXTENSIONS	12 Months Ended
OTHER CREDIT EXTENSIONS	Dec. 31, 2022
Debt Disclosure [Abstract]
OTHER CREDIT EXTENSIONS	OTHER CREDIT EXTENSIONS As of December 31, 2022 the Company maintained five credit facilities with commercial banks that provided federal funds credit extensions with an availability to borrow up to an aggregate amount of $175,000. As of December 31, 2021, the Company maintained five credit facilities with commercial banks that provide federal funds credit extensions with an availability to borrow up to an aggregate amount of approximately $175,000. There were no borrowings under these credit facilities as of December 31, 2022 and 2021. As of December 31, 2022 and 2021, the Company maintained a secured line of credit with the FRB with an availability to borrow approximately $1,138,661 and $995,139, respectively. Approximately $1,000,730 and $805,747 of commercial loans were pledged as collateral at December 31, 2022 and 2021, respectively. There were no borrowings under this line of credit as of December 31, 2022 and 2021.

PREMISES AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Schedule of Bank Premises, Furniture and Equipment

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


	December 31,
	2022		2021
Building and improvements	$	56,517	$	53,955
Site improvements	2,903		2,903
Tenant improvements	779		779
Leasehold improvements	7,497		7,358
Land	38,709		38,709
Furniture, fixtures and equipment	27,417		25,662
Construction in progress	1,579		1,464
	135,401		130,830
Less accumulated depreciation and amortization	26,577		21,559
	$	108,824	$	109,271

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
OPERATING ACTIVITIES:
Net income	$ 146,315	$ 139,584	$ 73,883
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of fixed assets and intangibles	18,668	15,731	15,832
Net accretion of time deposit premium, debt discount and debt issuance costs	977	(713)	(1,735)
Provision for credit losses and unfunded commitments	27,770	(4,830)	65,669
Accretion of loan discount	(5,047)	(7,193)	(14,060)
Stock-based compensation expense	11,929	10,573	7,983
Deferred tax (benefit) expense	(5,662)	4,647	(9,384)
Excess tax benefit from stock compensation	(1,056)	(838)	(1,435)
Net amortization of premiums on debt securities	4,708	2,885	3,236
Unrealized loss (gain) on equity securities recognized in earnings	1,246	325	(480)
Change in cash surrender value and mortality rates of BOLI	(1,302)	(339)	(1,940)
Net loss (gain) on sales of debt securities	0	188	(2,615)
Change in fair value of government guaranteed loans using fair value option	(1,072)	(1,845)	2,040
Gain on sales of mortgage LHFS	(550)	(1,592)	(1,239)
Gain on sales of government guaranteed loans	(12,988)	(6,194)	(3,379)
Originations of LHFS	(52,991)	(119,989)	(132,842)
Proceeds from sales of LHFS	61,130	112,606	125,375
Net impairment of servicing asset	1,823	71	368
Loss (gain) on sales of OREO	0	416	(693)
Equity method investment loss (income)	5,141	(5,760)	0
Termination of derivatives designated as hedging instruments	0	43,900	0
Gain on sale of premises and equipment	0	0	(358)
(Increase) decrease in other assets	(55,770)	11,139	(20,546)
Increase (decrease) in accounts payable and other liabilities	49,457	719	3,970
Net cash provided by operating activities	192,726	193,491	107,650
INVESTING ACTIVITIES:
Net cash paid for acquisitions	0	(55,522)	0
Purchases of AFS debt securities	(452,599)	(201,385)	(1,175,050)
Proceeds from sales of AFS debt securities	0	13,300	113,771
Proceeds from maturities, calls and pay downs of AFS debt securities	103,683	193,227	1,033,779
Purchases of HTM debt securities	(17,460)	(32,286)	0
Maturity, calls and paydowns on HTM debt securities	4,487	3,370	1,793
Purchases of equity method securities	0	(54,970)	(2,888)
Purchases of other investments	(35,393)	(1,436)	0
Sales (purchases) of securities under agreements to resell	102,288	(102,288)	0
Proceeds from sales of equity securities	0	0	221
Net loans originated	(2,193,503)	(626,512)	(897,455)
Proceeds from sale of government guaranteed loans	93,739	44,912	44,867
Net additions to premises and equipment	(4,620)	(13,575)	(2,864)
Proceeds from sales of premises and equipment	0	14,551	2,157
Proceeds from sales of OREO and repossessed assets	0	2,225	7,114
Net cash used in investing activities	(2,399,378)	(816,389)	(874,555)
FINANCING ACTIVITIES:
Net increase in deposits	1,759,653	851,468	619,380
Net increase (decrease) in advances from FHLB	397,438	(156)	99,848
Redemption of subordinated debt	0	(35,000)	(5,000)
Proceeds from issuance of subordinated notes, net of debt issuance costs paid	0	0	123,026
Net change in securities sold under agreement to repurchase	(4,069)	1,844	(128)
Net proceeds on sale of common stock in public offering	154,415	0	0
Proceeds from exercise of employee stock options	1,160	6,313	4,301
Payments to tax authorities for stock-based compensation	(3,363)	(725)	(3,829)
Proceeds from exercise of stock warrants	0	165	109
Purchase of treasury stock	0	(15,509)	(57,470)
Dividends paid	(42,289)	(36,543)	(34,057)
Net cash provided by financing activities	2,262,945	771,857	746,180
Net increase (decrease) in cash and cash equivalents	56,293	148,959	(20,725)
Cash and cash equivalents at beginning of year	379,784	230,825	251,550
Cash and cash equivalents at end of year	$ 436,077	$ 379,784	$ 230,825

OFF-BALANCE SHEET LOAN COMMITMENTS (Tables)

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

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

The following table sets forth the approximate amounts of these financial instruments as of December 31, 2022 and 2021:


	December 31,
	2022		2021
Commitments to extend credit	$	4,511,671	$	3,809,509
MW commitments	1,088,558		716,370
Standby and commercial letters of credit	98,179		65,881
	$	5,698,408	$	4,591,760

Schedule of Allowance For Unfunded Commitments

The table below presents the activity in the allowance for unfunded commitment credit losses related to those financial instruments discussed above. This allowance is recorded in accounts payable and other liabilities on the Consolidated Balance Sheets:


	December 31,
	2022		2021
Beginning balance for ACL on unfunded commitments	$	9,266	$	10,747

Provision (benefit) for credit losses on unfunded commitments	820		(1,481)
Ending balance of ACL on unfunded commitments	$	10,086	$	9,266

Cover Page - USD ($)	12 Months Ended
Cover Page - USD ($)	Dec. 31, 2022	Feb. 27, 2023	Jun. 30, 2022
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-36682
Entity Registrant Name	Veritex Holdings, Inc.
Entity Incorporation, State or Country Code	TX
Entity Tax Identification Number	27-0973566
Entity Address, Address Line One	8214 Westchester Drive, Suite 800
Entity Address, City or Town	Dallas
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75225
City Area Code	972
Local Phone Number	349 6200
Title of 12(b) Security	Common Stock, par value $0.01
Trading Symbol	VBTX
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 1,536,132,000
Entity Common Stock, Shares Outstanding		54,157,129
Documents Incorporated by Reference	Portions of the registrant’s Definitive Proxy Statement relating to the 2023 Annual Meeting of Shareholders are incorporated by reference into Part III of this Annual Report on Form 10-K to the extent stated herein. Such Definitive Proxy Statement will be filed with the Securities and Exchange Commission within 120 days after the end of the registrant’s fiscal year ended December 31, 2022.
Entity Central Index Key	0001501570
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY

PARENT COMPANY ONLY FINANCIAL STATEMENTS (Tables)

12 Months Ended

Dec. 31, 2022

Condensed Financial Information Disclosure [Abstract]

Balance Sheets

Balance Sheet


	December 31,
	2022		2021
Assets
Cash and cash equivalents	$	18,278	$	44,507
Investment in subsidiaries	1,650,727		1,496,310
Other assets	13,043		3,736
Total assets	$	1,682,048	$	1,544,553
Liabilities and Stockholders’ Equity
Other liabilities	$	3,500	$	1,710
Other borrowings	228,775		227,764
Total liabilities	232,275		229,474
Stockholders’ equity

Common stock	$	607	$	560
Additional paid-in capital	1,306,852		1,142,758
Retained earnings	379,299		275,273

Accumulated other comprehensive income	(69,403)		64,070
Treasury stock	(167,582)		(167,582)
Total stockholders’ equity	1,449,773		1,315,079
Total liabilities and stockholders’ equity	$	1,682,048	$	1,544,553

Statements of Income


	Year Ended December 31,
	2022		2021		2020
Cash dividends from subsidiary	$	35,000	$	8,440	$	65,000
Excess of earnings over dividend from subsidiary	121,350		142,289		16,693
Other	43		43		53
	156,393		150,772		81,746
Interest on borrowings	11,156		12,426		8,529
Salaries and employee benefits	685		668		612

Other	891		1,057		798
	12,732		14,151		9,939
Earnings before income tax benefit	143,661		136,621		71,807
Income tax benefit	(2,654)		(2,963)		(2,076)
Net income	$	146,315	$	139,584	$	73,883

Statements of Cash Flows


	Year Ended December 31,
	2022		2021		2020
Cash flows from operating activities:
Net income	$	146,315	$	139,584	$	73,883
Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Amortization of debt discount and debt issuance costs, net	790		817		1,263
Equity in undistributed net income of Bank	(121,350)		(142,289)		(16,693)
(Increase) decrease in other assets	(7,801)		902		(1,853)
Decrease (increase) in other liabilities	504		(3,177)		726
Net cash (used in) provided by operating activities	18,458		(4,163)		57,326
Cash flows from investing activities:



Advances to subsidiaries	(154,610)		—		—
Net cash provided by investing activities	(154,610)		—		—
Cash flows from financing activities:
Proceeds from issuance of subordinated notes, net of debt issuance costs paid	—		—		123,026
Net proceeds from sale of common stock in public offering	154,415		—		—
Proceeds from exercise of stock warrants	—		165		109
Redemption of subordinated debt	—		(35,000)		(5,000)
Proceeds from exercise of employee stock options	1,160		6,313		4,301
Payments to tax authorities for stock-based compensation	(3,363)		(725)		(3,829)


Repurchase of treasury stock	—		(15,509)		(57,470)
Dividends paid	(42,289)		(36,543)		(34,057)

Net cash (used in) provided by financing activities	109,923		(81,299)		27,080
Net (decrease) increase in cash and cash equivalents	(26,229)		(85,462)		84,406
Cash and cash equivalents at beginning of year	44,507		129,969		45,563
Cash and cash equivalents at end of year	$	18,278	$	44,507	$	129,969

STOCK AND INCENTIVE PLANS - 2019 Amended Plan - Restricted Stock Units (Details) - 2022 Equity Plan - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
RSUs
Activity in shares
Nonvested at the beginning of the period (in shares)	598,051	441,132	175,688
Granted (in shares)	546,405	281,149	360,400
Vested into shares (in shares)	(175,159)	(108,732)	(93,377)
Forfeited (in shares)	(14,193)	(15,498)	(1,579)
Nonvested at the end of the period (in shares)	955,104	598,051	441,132
Weighted Average Grant Date Fair Value
Nonvested at the beginning of the period (in dollars per share)	$ 23.39	$ 20.39	$ 21.65
Granted (in dollars per share)	33.79	28.68	20.38
Vested into shares (in dollars per share)	27.88	24.19	24.73
Forfeited (in dollars per share)	33.18	28.47	29.13
Nonvested at the end of the period (in dollars per share)	$ 28.38	$ 23.39	$ 20.39
PSUs
Activity in shares
Nonvested at the beginning of the period (in shares)	156,471	100,195	63,727
Granted (in shares)	39,429	56,276	39,398
Vested into shares (in shares)	(103,387)		(1,841)
Forfeited (in shares)			(1,089)
Nonvested at the end of the period (in shares)	126,707	156,471	100,195
Weighted Average Grant Date Fair Value
Nonvested at the beginning of the period (in dollars per share)	$ 24.17	$ 23.20	$ 22.76
Granted (in dollars per share)	40.38	25.94	25.94
Vested into shares (in dollars per share)	22.79		19.69
Forfeited (in dollars per share)			19.69
Nonvested at the end of the period (in dollars per share)	$ 31.19	$ 24.17	$ 23.20

OTHER CREDIT EXTENSIONS (Details)	Dec. 31, 2022 USD ($) facility	Dec. 31, 2021 USD ($) facility
Federal Funds Credit Extensions With Commercial Banks
Other Credit Extensions
Number of credit facilities \| facility	5	5
Maximum available borrowings	$ 175,000,000	$ 175,000,000
Outstanding borrowings	0	0
Federal Reserve Bank Secured Line Of Credit
Other Credit Extensions
Maximum available borrowings	1,138,661,000	995,139,000
Outstanding borrowings	0	0
Amounts of commercial loans pledged as collateral	$ 1,000,730,000	$ 805,747,000

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
Consolidated Statements of Income - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
INTEREST AND DIVIDEND INCOME
Interest and fees on loans	$ 399,679	$ 280,526	$ 286,583
Debt securities	38,736	32,132	30,726
Deposits in financial institutions and Fed Funds sold	6,275	589	1,221
Equity securities and other investments	4,720	3,237	3,320
Total interest and dividend income	449,410	316,484	321,850
INTEREST EXPENSE
Transaction and savings deposits	42,785	6,858	13,233
Certificates and other time deposits	15,307	9,079	23,678
Advances from FHLB	15,501	7,336	10,609
Subordinated debentures and subordinated notes	11,160	12,428	8,532
Total interest expense	84,753	35,701	56,052
NET INTEREST INCOME	364,657	280,783	265,798
Provision (benefit) for credit losses	26,950	(3,349)	56,640
Provision (benefit) for credit losses on unfunded commitments	820	(1,481)	9,029
Net interest income after provision for credit losses	336,887	285,613	200,129
NONINTEREST INCOME
Service charges and fees on deposit accounts	20,139	16,742	13,703
Loan fees	10,442	7,607	4,556
(Loss) gain on sale of debt securities	0	(188)	2,615
Gain on sale of mortgage LHFS	550	1,592	1,239
Government guaranteed loan income, net	14,060	15,760	14,150
Equity method investment (loss) income	(5,141)	5,760	0
Customer swap income	7,898	2,491	2,482
Other	4,874	8,641	8,599
Total noninterest income	52,822	58,405	47,344
NONINTEREST EXPENSE
Salaries and employee benefits	117,841	94,748	79,453
Occupancy and equipment	18,744	17,263	16,363
Professional and regulatory fees	14,142	12,945	11,729
Data processing and software expense	14,013	9,946	9,213
Marketing	7,179	5,344	3,651
Amortization of intangibles	9,979	10,057	10,790
Telephone and communications	1,484	1,434	1,312
COVID expenses	0	0	1,377
Debt extinguishment costs	0	0	11,307
Merger and acquisition ("M&A") expense	1,379	826	0
Other	18,314	15,149	14,192
Total noninterest expense	203,075	167,712	159,387
Income before income tax expense	186,634	176,306	88,086
Income tax expense	40,319	36,722	14,203
NET INCOME	$ 146,315	$ 139,584	$ 73,883
Basic earnings per share (in dollars per share)	$ 2.75	$ 2.83	$ 1.48
Diluted earnings per share (in dollars per share)	$ 2.71	$ 2.77	$ 1.48

GOODWILL (Tables)

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Changes in the Carrying Amount of Goodwill

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


	December 31,
	2022		2021
Balance at beginning of year	$	403,771	$	370,840


NAC acquisition1	681		32,931

Balance at end of year	$	404,452	$	403,771

1During the first quarter of 2022, the purchased accounting adjustments for NAC were finalized resulting in an increase in goodwill during 2022.

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
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-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

+ Details

INCOME TAXES

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

INCOME TAXES

The provision for income taxes is summarized as follows:


	Year Ended December 31,
	2022		2021		2020
Income tax expense (benefit):
Current	$	45,981	$	32,075	$	23,587
Deferred	(5,662)		4,647		(9,384)
	$	40,319	$	36,722	$	14,203

The table below reconciles income tax expense for the years ended December 31, 2022, 2021 and 2020 computed by applying the applicable U.S. federal statutory income tax rate, reconciled to the tax expense computed at the effective income tax rate:


	Year Ended December 31,
	2022			2021			2020
Federal income tax expense rate at 21% for December 31, 2022, 2021 and 2020	$	39,193		$	37,024		$	18,498
Bank-owned life insurance	(448)			(852)			(407)
Non-deductible transaction costs	—			78			—
Tax exempt interest income	(579)			(545)			(452)

Deferred tax true up	54			24			(1,181)
162(m) Disallowance	1,183			504			65
State taxes, net of federal benefit	1,769			1,039			902
Excess benefit on share-based compensation	(1,056)			(838)			(1,435)
Net Operating Loss ("NOL") Carryback	—			—			(1,799)
Other	203			288			12
Total income tax expense	$	40,319		$	36,722		$	14,203
Effective tax rate	21.6		%	20.8		%	16.1		%

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


	December 31,
	2022		2021
Deferred tax assets:

ACL	$	21,647	$	18,274
Equity compensation	4,286		4,111
Purchase premium/loan discounts	1,546		1,555

Lease liability	3,708		3,785
Net unrealized loss on debt securities AFS	17,204		—
Purchased securities	2,520		2,507
Other	9,219		6,320
Total deferred tax assets	$	60,130	$	36,552
Deferred tax liabilities:
Intangibles	9,340		10,372
Bank premises and equipment	6,163		5,773
ROU asset	3,587		3,583
Net unrealized gain on debt securities AFS	—		17,030
Other	3,214		1,864
Total deferred tax liabilities	22,304		38,622
Net deferred tax asset (liability)	$	37,826	$	(2,070)

Included within other assets in the Company's consolidated balance sheet as of December 31, 2022 is a current tax receivable of $1,741 and included within other assets is a net deferred tax asset of $37,826. Additionally, included within accounts payable and accrued expenses in the Company's consolidated balance sheets as of December 31, 2022 is a $573 current state tax payable. Included within other assets in the Company's consolidated balance sheets as of December 31, 2021 is

a current tax receivable of $9,366 and included in other liabilities is a net deferred tax liability of $2,070. Additionally, included within accounts payable and accrued expenses in the Company's consolidated balance sheets as of December 31, 2021 is a $806 current state tax payable.

The following table provides a rollforward of the Company's gross federal and state unrecognized tax benefits for the years ending December 31, 2022, 2021 and 2020.


	December 31
	2022		2021		2020
Unrecognized tax benefits at the beginning of the year:	$	503	$	549	$	—
Gross increases, related to tax positions taken in a prior period	—		—		281
Gross decreases, related to tax positions taken in a prior period	(44)		(101)		—
Gross increases, related to tax positions taken in current period	75		55		268
Settlement with taxing authority	(241)		—		—
Unrecognized tax benefits at the end of the year	$	293	$	503	$	549

The Company files income tax returns in the U.S. federal jurisdiction and U.S. state jurisdictions. As of December 31, 2022, the Company is no longer subject to U.S. federal income tax examinations for tax years prior to 2019 and state income tax examinations for tax years prior to 2018.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

BUSINESS COMBINATIONS (Tables)

12 Months Ended

Dec. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of Acquired Assets and Assumed Liabilities


	Estimate at December 31, 2021		Measurement Period Adjustments		Final Fair Value
Assets acquired
Cash and cash equivalents	$	1,978	$	—	$	1,978
LHI	29,338		(681)		28,657
Servicing asset	13,913		—		13,913
Other assets	690		—		690
	45,919		(681)		45,238

Liabilities assumed
Accounts payable and other accrued expenses	16,350		—		16,350
	16,350		—		16,350

Fair value of net assets acquired	29,569		(681)		28,888
Consideration:
Cash paid	57,500		—		57,500
Contingent consideration	5,000		—		5,000
Total consideration	$	62,500	$	—	$	62,500
Goodwill	$	32,931	$	681	$	33,612

Summary of Loans Acquired in a Business Combination

The following table discloses the fair value and contractual value of loans acquired from NAC on November 1, 2021:


	Total acquired loans
Commercial	$	26,519
CRE	2,138
Total fair value	$	28,657
Contractual principal balance	$	29,338

Summary of Pro Forma Information, Business Acquisition


	Year Ended December 31,
	2020		2019
Net interest income	$	267,331	$	286,313
Net income	84,368		93,939

Basic EPS	$	1.69	$	1.77
Diluted EPS	1.69		1.74

SUPPLEMENTAL STATEMENT OF CASH FLOWS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest	$ 77,298	$ 37,139	$ 58,236
Cash paid for income taxes	36,165	14,349	40,690
Supplemental Disclosures of Non-Cash Flow Information:
Setup of ROU asset and lease liability	0	6,232	4,123
Contingent consideration in connection with acquisitions	0	5,000	0
Transfer of AFS debt securities to HTM debt securities	117,001	0	0
Net foreclosure of OREO and repossessed assets	0	334	2,764
LHI transferred to LHFS	0	10,890	4,511
Noncash assets acquired
LHI	(681)	29,338	0
Intangible assets, net	0	13,913	0
Goodwill	681	32,931	0
Other assets	0	690	0
Total assets	0	76,872	0
Noncash liabilities assumed
Accounts payable and other liabilities	0	16,350	0
Total liabilities	$ 0	$ 16,350	$ 0

DEPOSITS - Additional Information (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Statistical Disclosure for Banks [Abstract]
Demand deposit overdrafts reclassified as loans	$ 395	$ 2,128
Brokered deposits	$ 1,307,996	$ 182,303

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Equity Securities (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Impairment loss, equity securities	$ 0	$ 0

LEASES - Maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Leases [Abstract]
Within one year	$ 4,737
After one but within two years	4,351
After two but within three years	3,549
After three but within four years	2,227
After four but within five years	1,089
After five years	3,235
Total undiscounted cash flows	19,188
Less: Discount on cash flows	(1,861)
Total lease liability	$ 17,327	$ 18,023

LHI AND ACL - Allowance for Credit Loss Activity (Details) - USD ($) $ in Thousands		12 Months Ended
	Jan. 01, 2020	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Analysis of allowance for loan losses
Balance at beginning of year	$ 29,834	$ 77,754	$ 105,084	$ 29,834
Provision (benefit) for credit losses		26,950	(3,349)	56,640
Charge-offs		(16,072)	(26,390)	(20,973)
Recoveries		2,420	2,409	446
Ending Balance	29,834	91,052	77,754	105,084
Cumulative Effect, Period of Adoption, Adjustment
Analysis of allowance for loan losses
Balance at beginning of year	19,427			19,427
Impact of adopting ASC 326 PCD loans				19,710
Ending Balance	39,137
Non-PCD Loans
Analysis of allowance for loan losses
Provision (benefit) for credit losses		32,828	(25,862)	54,663
PCD Loans
Analysis of allowance for loan losses
Provision (benefit) for credit losses		(5,878)	22,513	1,977
Real Estate \| Construction and Land
Analysis of allowance for loan losses
Balance at beginning of year	3,821	7,293	7,768	3,821
Charge-offs		0	0	0
Recoveries		0	0	0
Ending Balance	3,822	13,120	7,293	7,768
Real Estate \| Construction and Land \| Cumulative Effect, Period of Adoption, Adjustment
Analysis of allowance for loan losses
Balance at beginning of year	(707)			(707)
Impact of adopting ASC 326 PCD loans				645
Ending Balance	(62)
Real Estate \| Construction and Land \| Non-PCD Loans
Analysis of allowance for loan losses
Provision (benefit) for credit losses		5,855	(547)	4,554
Real Estate \| Construction and Land \| PCD Loans
Analysis of allowance for loan losses
Provision (benefit) for credit losses		(28)	72	(545)
Real Estate \| Farmland
Analysis of allowance for loan losses
Balance at beginning of year	62	187	56	62
Charge-offs		0	0	0
Recoveries		0	0	0
Ending Balance	61	127	187	56
Real Estate \| Farmland \| Cumulative Effect, Period of Adoption, Adjustment
Analysis of allowance for loan losses
Balance at beginning of year	4			4
Impact of adopting ASC 326 PCD loans				0
Ending Balance	4
Real Estate \| Farmland \| Non-PCD Loans
Analysis of allowance for loan losses
Provision (benefit) for credit losses		(60)	131	(10)
Real Estate \| Farmland \| PCD Loans
Analysis of allowance for loan losses
Provision (benefit) for credit losses		0	0	0
Real Estate \| Residential Real Estate \| 1 - 4 family residential
Analysis of allowance for loan losses
Balance at beginning of year	2,143	5,982	8,148	2,143
Charge-offs		0	(379)	(18)
Recoveries		31	64	57
Ending Balance	1,378	9,533	5,982	8,148
Real Estate \| Residential Real Estate \| 1 - 4 family residential \| Cumulative Effect, Period of Adoption, Adjustment
Analysis of allowance for loan losses
Balance at beginning of year	3,716			3,716
Impact of adopting ASC 326 PCD loans				908
Ending Balance	4,624
Real Estate \| Residential Real Estate \| 1 - 4 family residential \| Non-PCD Loans
Analysis of allowance for loan losses
Provision (benefit) for credit losses		3,757	(2,153)	1,720
Real Estate \| Residential Real Estate \| 1 - 4 family residential \| PCD Loans
Analysis of allowance for loan losses
Provision (benefit) for credit losses		(237)	302	(378)
Real Estate \| Residential Real Estate \| Multi-family residential
Analysis of allowance for loan losses
Balance at beginning of year	1,200	2,664	6,231	1,200
Charge-offs		0	0	0
Recoveries		0	0	0
Ending Balance	1,965	2,607	2,664	6,231
Real Estate \| Residential Real Estate \| Multi-family residential \| Cumulative Effect, Period of Adoption, Adjustment
Analysis of allowance for loan losses
Balance at beginning of year	628			628
Impact of adopting ASC 326 PCD loans				0
Ending Balance	628
Real Estate \| Residential Real Estate \| Multi-family residential \| Non-PCD Loans
Analysis of allowance for loan losses
Provision (benefit) for credit losses		(57)	(3,567)	4,403
Real Estate \| Residential Real Estate \| Multi-family residential \| PCD Loans
Analysis of allowance for loan losses
Provision (benefit) for credit losses		0	0	0
Real Estate \| Commercial Real Estate \| OOCRE
Analysis of allowance for loan losses
Balance at beginning of year	1,991	9,215	9,719	1,991
Charge-offs		(2,646)	(2,400)	(2,421)
Recoveries		271	500	0
Ending Balance	1,978	8,707	9,215	9,719
Real Estate \| Commercial Real Estate \| OOCRE \| Cumulative Effect, Period of Adoption, Adjustment
Analysis of allowance for loan losses
Balance at beginning of year	3,406			3,406
Impact of adopting ASC 326 PCD loans				7,682
Ending Balance	11,088
Real Estate \| Commercial Real Estate \| OOCRE \| Non-PCD Loans
Analysis of allowance for loan losses
Provision (benefit) for credit losses		4,633	(2,325)	4,364
Real Estate \| Commercial Real Estate \| OOCRE \| PCD Loans
Analysis of allowance for loan losses
Provision (benefit) for credit losses		(2,766)	3,721	(5,303)
Real Estate \| Commercial Real Estate \| NOOCRE
Analysis of allowance for loan losses
Balance at beginning of year	8,126	30,548	35,237	8,126
Charge-offs		(2,410)	(7,936)	(2,865)
Recoveries		725	0	0
Ending Balance	8,139	26,704	30,548	35,237
Real Estate \| Commercial Real Estate \| NOOCRE \| Cumulative Effect, Period of Adoption, Adjustment
Analysis of allowance for loan losses
Balance at beginning of year	5,138			5,138
Impact of adopting ASC 326 PCD loans				2,037
Ending Balance	7,175
Real Estate \| Commercial Real Estate \| NOOCRE \| Non-PCD Loans
Analysis of allowance for loan losses
Provision (benefit) for credit losses		(2,588)	(7,490)	15,397
Real Estate \| Commercial Real Estate \| NOOCRE \| PCD Loans
Analysis of allowance for loan losses
Provision (benefit) for credit losses		429	10,737	7,404
Commercial
Analysis of allowance for loan losses
Balance at beginning of year	12,369	21,632	37,554	12,369
Charge-offs		(9,731)	(15,576)	(15,507)
Recoveries		1,308	1,542	102
Ending Balance	12,369	30,142	21,632	37,554
Commercial \| Cumulative Effect, Period of Adoption, Adjustment
Analysis of allowance for loan losses
Balance at beginning of year	7,025			7,025
Impact of adopting ASC 326 PCD loans				8,335
Ending Balance	15,360
Commercial \| Non-PCD Loans
Analysis of allowance for loan losses
Provision (benefit) for credit losses		18,933	(9,510)	24,413
Commercial \| PCD Loans
Analysis of allowance for loan losses
Provision (benefit) for credit losses		(2,000)	7,622	817
Consumer
Analysis of allowance for loan losses
Balance at beginning of year	122	233	371	122
Charge-offs		(1,285)	(99)	(162)
Recoveries		85	303	287
Ending Balance	122	112	233	371
Consumer \| Cumulative Effect, Period of Adoption, Adjustment
Analysis of allowance for loan losses
Balance at beginning of year	217			217
Impact of adopting ASC 326 PCD loans				103
Ending Balance	$ 320
Consumer \| Non-PCD Loans
Analysis of allowance for loan losses
Provision (benefit) for credit losses		2,355	(401)	(178)
Consumer \| PCD Loans
Analysis of allowance for loan losses
Provision (benefit) for credit losses		$ (1,276)	$ 59	$ (18)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Impact of ASC 326 (Details) - USD ($) $ in Thousands		12 Months Ended
	Jan. 01, 2020	Dec. 31, 2020	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
CECL impact on date of adoption		$ 1,203,376	$ 1,449,773	$ 1,315,079	$ 1,190,797
ACL on debt securities HTM	$ 0		0	0
ACL on loans	29,834	105,084	91,052	77,754	29,834
ACL on OBS credit exposures	878
Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
CECL impact on date of adoption		172,232	379,299	275,273	147,911
Accounting Standards Update 2016-13
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impact of adopting ASC 326 PCD loans	19,710
Real Estate \| Construction and Land
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
ACL on loans	3,822	7,768	13,120	7,293	3,821
Real Estate \| Farmland
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
ACL on loans	61	56	127	187	62
Real Estate \| Residential Real Estate \| 1 - 4 family residential
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
ACL on loans	1,378	8,148	9,533	5,982	2,143
Real Estate \| Residential Real Estate \| Multi-family residential
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
ACL on loans	1,965	6,231	2,607	2,664	1,200
Real Estate \| Commercial Real Estate \| OOCRE
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
ACL on loans	1,978	9,719	8,707	9,215	1,991
Real Estate \| Commercial Real Estate \| NOOCRE
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
ACL on loans	8,139	35,237	26,704	30,548	8,126
Commercial
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
ACL on loans	12,369	37,554	30,142	21,632	12,369
Consumer
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
ACL on loans	122	371	$ 112	$ 233	122
Cumulative Effect, Period Of Adoption, Adjusted Balance
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
ACL on debt securities HTM	0
ACL on loans	68,971
ACL on OBS credit exposures	1,718
Cumulative Effect, Period Of Adoption, Adjusted Balance \| Real Estate \| Construction and Land
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
ACL on loans	3,760
Cumulative Effect, Period Of Adoption, Adjusted Balance \| Real Estate \| Farmland
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
ACL on loans	65
Cumulative Effect, Period Of Adoption, Adjusted Balance \| Real Estate \| Residential Real Estate \| 1 - 4 family residential
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
ACL on loans	6,002
Cumulative Effect, Period Of Adoption, Adjusted Balance \| Real Estate \| Residential Real Estate \| Multi-family residential
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
ACL on loans	2,593
Cumulative Effect, Period Of Adoption, Adjusted Balance \| Real Estate \| Commercial Real Estate \| OOCRE
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
ACL on loans	13,066
Cumulative Effect, Period Of Adoption, Adjusted Balance \| Real Estate \| Commercial Real Estate \| NOOCRE
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
ACL on loans	15,314
Cumulative Effect, Period Of Adoption, Adjusted Balance \| Commercial
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
ACL on loans	27,729
Cumulative Effect, Period Of Adoption, Adjusted Balance \| Consumer
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
ACL on loans	442
Cumulative Effect, Period of Adoption, Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
CECL impact on date of adoption		(15,505)
Impact of adopting ASC 326 PCD loans		19,710
ACL on debt securities HTM	0
ACL on loans	39,137				19,427
ACL on OBS credit exposures	840
Cumulative Effect, Period of Adoption, Adjustment \| Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
CECL impact on date of adoption		(15,505)
Cumulative Effect, Period of Adoption, Adjustment \| Accounting Standards Update 2016-13 \| Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
CECL impact on date of adoption		(15,505)
Cumulative Effect, Period of Adoption, Adjustment \| Real Estate \| Construction and Land
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impact of adopting ASC 326 PCD loans		645
ACL on loans	(62)				(707)
Cumulative Effect, Period of Adoption, Adjustment \| Real Estate \| Farmland
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impact of adopting ASC 326 PCD loans		0
ACL on loans	4				4
Cumulative Effect, Period of Adoption, Adjustment \| Real Estate \| Residential Real Estate \| 1 - 4 family residential
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impact of adopting ASC 326 PCD loans		908
ACL on loans	4,624				3,716
Cumulative Effect, Period of Adoption, Adjustment \| Real Estate \| Residential Real Estate \| Multi-family residential
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impact of adopting ASC 326 PCD loans		0
ACL on loans	628				628
Cumulative Effect, Period of Adoption, Adjustment \| Real Estate \| Commercial Real Estate \| OOCRE
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impact of adopting ASC 326 PCD loans		7,682
ACL on loans	11,088				3,406
Cumulative Effect, Period of Adoption, Adjustment \| Real Estate \| Commercial Real Estate \| NOOCRE
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impact of adopting ASC 326 PCD loans		2,037
ACL on loans	7,175				5,138
Cumulative Effect, Period of Adoption, Adjustment \| Commercial
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impact of adopting ASC 326 PCD loans		8,335
ACL on loans	15,360				7,025
Cumulative Effect, Period of Adoption, Adjustment \| Consumer
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impact of adopting ASC 326 PCD loans		$ 103
ACL on loans	$ 320				$ 217

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Segment Reporting (Details)	12 Months Ended
	Dec. 31, 2022 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments	1

INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets


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

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


	December 31, 2022
	Remaining
	Weighted	Gross						Net
	Amortization	Intangible		Valuation		Accumulated		Intangible
	Period	Asset		Allowance		Amortization		Asset
Core deposit intangibles	4.0 years	$	81,769	$	—	$	43,523	$	38,246
Servicing asset	7.4 years	24,760		2,451		7,429		14,880
Intangible lease assets	0.3 years	4,779		—		4,692		87
		$	111,308	$	2,451	$	55,644	$	53,213


	December 31, 2021
	Remaining
	Weighted	Gross						Net
	Amortization	Intangible		Valuation		Accumulated		Intangible
	Period	Asset		Allowance		Amortization		Asset
Core deposit intangibles	5.0 years	$	81,769	$	—	$	33,771	$	47,998
Servicing asset	7.2 years	22,090		627		3,758		17,705
Intangible lease assets	1.3 years	4,779		—		4,465		314
		$	108,638	$	627	$	41,994	$	66,017

Schedule of the Estimated Aggregate Future Amortization Expense for Intangible Assets

The estimated aggregate future amortization expense for intangible assets remaining as of December 31, 2022 was as follows:


Year	Amount
2023	$	11,839
2024	11,752
2025	11,415
2026	11,329
2027	2,000
Thereafter	4,878
	$	53,213

PARENT COMPANY ONLY FINANCIAL STATEMENTS

12 Months Ended

Dec. 31, 2022

Condensed Financial Information Disclosure [Abstract]

PARENT COMPANY ONLY FINANCIAL STATEMENTS

The following condensed balance sheets, statements of income and statements of cash flows for Veritex Holdings, Inc. should be read in conjunction with the consolidated financial statements and the notes thereto.

Balance Sheet


	December 31,
	2022		2021
Assets
Cash and cash equivalents	$	18,278	$	44,507
Investment in subsidiaries	1,650,727		1,496,310
Other assets	13,043		3,736
Total assets	$	1,682,048	$	1,544,553
Liabilities and Stockholders’ Equity
Other liabilities	$	3,500	$	1,710
Other borrowings	228,775		227,764
Total liabilities	232,275		229,474
Stockholders’ equity

Common stock	$	607	$	560
Additional paid-in capital	1,306,852		1,142,758
Retained earnings	379,299		275,273

Accumulated other comprehensive income	(69,403)		64,070
Treasury stock	(167,582)		(167,582)
Total stockholders’ equity	1,449,773		1,315,079
Total liabilities and stockholders’ equity	$	1,682,048	$	1,544,553

Statements of Income


	Year Ended December 31,
	2022		2021		2020
Cash dividends from subsidiary	$	35,000	$	8,440	$	65,000
Excess of earnings over dividend from subsidiary	121,350		142,289		16,693
Other	43		43		53
	156,393		150,772		81,746
Interest on borrowings	11,156		12,426		8,529
Salaries and employee benefits	685		668		612

Other	891		1,057		798
	12,732		14,151		9,939
Earnings before income tax benefit	143,661		136,621		71,807
Income tax benefit	(2,654)		(2,963)		(2,076)
Net income	$	146,315	$	139,584	$	73,883

Statements of Cash Flows


	Year Ended December 31,
	2022		2021		2020
Cash flows from operating activities:
Net income	$	146,315	$	139,584	$	73,883
Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Amortization of debt discount and debt issuance costs, net	790		817		1,263
Equity in undistributed net income of Bank	(121,350)		(142,289)		(16,693)
(Increase) decrease in other assets	(7,801)		902		(1,853)
Decrease (increase) in other liabilities	504		(3,177)		726
Net cash (used in) provided by operating activities	18,458		(4,163)		57,326
Cash flows from investing activities:



Advances to subsidiaries	(154,610)		—		—
Net cash provided by investing activities	(154,610)		—		—
Cash flows from financing activities:
Proceeds from issuance of subordinated notes, net of debt issuance costs paid	—		—		123,026
Net proceeds from sale of common stock in public offering	154,415		—		—
Proceeds from exercise of stock warrants	—		165		109
Redemption of subordinated debt	—		(35,000)		(5,000)
Proceeds from exercise of employee stock options	1,160		6,313		4,301
Payments to tax authorities for stock-based compensation	(3,363)		(725)		(3,829)


Repurchase of treasury stock	—		(15,509)		(57,470)
Dividends paid	(42,289)		(36,543)		(34,057)

Net cash (used in) provided by financing activities	109,923		(81,299)		27,080
Net (decrease) increase in cash and cash equivalents	(26,229)		(85,462)		84,406
Cash and cash equivalents at beginning of year	44,507		129,969		45,563
Cash and cash equivalents at end of year	$	18,278	$	44,507	$	129,969

SECURITIES

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

SECURITIES

Equity Securities With a Readily Determinable Fair Value

The Company held equity securities with a fair value of $9,792 and $11,038 at December 31, 2022 and 2021, respectively. No gains or losses on equity securities with a readily determinable fair value were realized during the year ended December 31, 2022 or 2021. The Company realized a loss of $8 on equity securities with a readily determinable fair value during the year ended December 31, 2020.

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


	2022		2021		2020
Unrealized (loss) gain recognized on equity securities with a readily determinable fair value	$	(1,246)	$	(325)	$	480

Equity Securities Without a Readily Determinable Fair Value

The Company held equity securities without a readily determinable fair values and measured at cost of $10,072 and $4,355 at December 31, 2022 and 2021, respectively.

Securities purchased under agreements to resell

The Company held no securities purchased under agreements to resell as of December 31, 2022. The Company held securities purchased under agreements to resell of $102,288 as of December 31, 2021. During the twelve months ended December 31, 2022 and 2021, interest income recorded in equity securities and other investments in the Company’s consolidated statements of income was $1,386 and $529, respectively. Interest income of securities purchased under agreements to resell typically mature 30 days from the settlement date, qualify as a secured borrowing and are measured at amortized cost.

Debt Securities

Debt securities have been classified in the consolidated balance sheets according to management’s intent. The amortized cost, related gross unrealized gains and losses, ACL and the fair value of AFS and HTM debt securities are as follows:


	December 31, 2022
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		ACL		Fair Value
AFS
Corporate bonds	$	268,179	$	1,445	$	17,379	$	—	$	252,245
Municipal securities	49,886		3		4,198		—		45,691
Mortgage-backed securities	156,408		23		17,420		—		139,011
Collateralized mortgage obligations	609,456		—		55,850		—		553,606
Asset-backed securities	42,015		289		2,613		—		39,691
Collateralized loan obligations	69,750		—		3,702		—		66,048
	$	1,195,694	$	1,760	$	101,162	$	—	$	1,096,292

			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		ACL		Fair Value
HTM
Mortgage-backed securities	$	36,342	$	—	$	6,753	$	—	$	29,589
Collateralized mortgage obligations	36,169		—		5,884		—		30,285
Municipal securities	113,657		6		14,756		—		98,907
	$	186,168	$	6	$	27,393	$	—	$	158,781

The Company elected to transfer 25 AFS debt securities with an aggregate fair value of $117,001 to a classification of HTM debt securities on January 1, 2022. In accordance with FASB ASC 320-10-35-10, the transfer from AFS to HTM must be recorded at the fair value of the AFS debt securities at the time of transfer. The net unrealized holding gain of $4,387, net of tax, at the date of transfer was retained in AOCI, with the associated pre-tax amount retained in the carrying value of the HTM debt securities. Such amounts will be amortized to comprehensive income over the remaining life of the securities. The Company did not transfer any debt securities from AFS to HTM at fair value during the year ended December 31, 2021.


	December 31, 2021
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		ACL		Fair Value
AFS

Corporate bonds	$	198,396	$	10,294	$	178	$	—	$	208,512
Municipal securities	116,100		8,261		431		—		123,930
Mortgage-backed securities	124,230		4,326		1,489		—		127,067
Collateralized mortgage obligations	424,174		12,240		2,350		—		434,064
Asset-backed securities	53,466		1,616		519		—		54,563
Collateralized loan obligations	45,089		—		167		—		44,922
	$	961,455	$	36,737	$	5,134	$	—	$	993,058

			Gross		Gross
	Amortized		Unrealized		Unrealized
HTM	Cost		Gains		Losses		ACL		Fair Value
Mortgage-backed securities	$	25,767	$	45	$	508	$	—	$	25,304
Collateralized mortgage obligations	5,490		560		—		—		6,050
Municipal securities	28,179		2,015		102		—		30,092
	$	59,436	$	2,620	$	610	$	—	$	61,446

The following tables disclose the Company’s AFS debt securities in an unrealized loss position for which an ACL has not been recorded, aggregated by investment category and length of time that individual debt securities have been in a continuous loss position:


	December 31, 2022
	Less Than 12 Months				12 Months or More				Totals
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Loss		Value		Loss		Value		Loss
AFS

Corporate bonds	$	197,946	$	15,697	$	15,568	$	1,682	$	213,514	$	17,379
Municipal securities	33,919		848		8,813		3,350		42,732		4,198
Mortgage-backed securities	115,467		11,104		22,780		6,317		138,247		17,421
Collateralized mortgage obligations	482,358		42,553		71,198		13,296		553,556		55,849
Asset-backed securities	15,195		991		11,207		1,621		26,402		2,612
Collateralized loan obligations	23,673		1,328		42,375		2,375		66,048		3,703
	$	868,558	$	72,521	$	171,941	$	28,641	$	1,040,499	$	101,162

HTM
Mortgage-backed securities	$	804	$	85	$	28,784	$	6,668	$	29,588	$	6,753
Collateralized mortgage obligations	25,285		4,676		4,999		1,208		30,284		5,884
Municipal securities	85,671		11,411		9,161		3,345		94,832		14,756
	$	111,760	$	16,172	$	42,944	$	11,221	$	154,704	$	27,393


	December 31, 2021
	Less Than 12 Months				12 Months or More				Totals
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Loss		Value		Loss		Value		Loss
AFS

Corporate bonds	$	7,072	$	178	$	—	$	—	$	7,072	$	178
Municipal securities	12,704		194		4,350		237		17,054		431
Mortgage-backed securities	40,276		1,283		4,677		206		44,953		1,489
Collateralized mortgage obligations	106,063		2,350		—		—		106,063		2,350
Asset-backed securities	11,265		519		—		—		11,265		519
Collateralized loan obligations	44,922		167		—		—		44,922		167
	$	222,302	$	4,691	$	9,027	$	443	$	231,329	$	5,134

HTM
Mortgage-backed securities	$	24,214	$	508	$	—	$	—	$	24,214	$	508
Collateralized mortgage obligations	—		—		—		—		—		—
Municipal securities	4,583		102		—		—		4,583		102
	$	28,797	$	610	$	—	$	—	$	28,797	$	610

Management evaluates AFS debt securities in unrealized loss positions to determine whether the impairment is due to credit-related factors or noncredit-related factors. Consideration is given to (1) the extent to which the fair value is less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value.

The number of AFS debt securities in an unrealized loss position totaled 175 and 34 at December 31, 2022 and December 31, 2021, respectively. Management does not have the intent to sell any of these securities and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. Accordingly, as of December 31, 2022, management believes that the unrealized losses detailed in the previous table are due to noncredit-related factors, including changes in interest rates and other market conditions, and therefore no losses have been recognized in the Company’s consolidated statements of income.

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


	December 31, 2022
	AFS				HTM
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value

Due from one year to five years	$	53,692	$	54,179	$	—	$	—
Due from five years to ten years	205,911		190,406		8,275		8,129
Due after ten years	58,462		53,351		105,382		90,778
	318,065		297,936		113,657		98,907
Mortgage-backed securities and collateralized mortgage obligations	765,864		692,617		72,511		59,874
Asset-backed securities	42,015		39,691		—		—
Collateralized loan obligations	69,750		66,048		—		—
	$	1,195,694	$	1,096,292	$	186,168	$	158,781


	December 31, 2021
	AFS				HTM
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value

Due from one year to five years	$	5,201	$	5,241	$	—	$	—
Due from five years to ten years	178,203		186,972		3,849		4,115
Due after ten years	131,092		140,229		24,330		25,977
	314,496		332,442		28,179		30,092
Mortgage-backed securities and collateralized mortgage obligations	548,404		561,131		31,257		31,354
Asset-backed securities	53,466		54,563		—		—
Collateralized loan obligations	45,089		44,922		—		—
	$	961,455	$	993,058	$	59,436	$	61,446

Proceeds from sales of debt securities AFS and gross realized gains and losses for the years ended December 31, 2022, 2021 and 2020 were as follows:


	December 31,
	2022		2021		2020
Proceeds from sales	$	—	$	13,300	$	113,771
Gross realized gains	—		—		2,879
Gross realized losses	—		188		256

As of December 31, 2022 and December 31, 2021, there were no holdings of securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of shareholders' equity. As further explained in Note 12, Advances from the FHLB, there was a blanket floating lien on all debt securities to secure FHLB advances as of December 31, 2022 and December 31, 2021.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Gain on Sale of Guaranteed Portion of SBA Loans (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Gain (loss) on sale of government guaranteed loans	$ 12,988	$ 6,194	$ 3,379
Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Guaranteed portion of SBA loans, percent	0.50
Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Guaranteed portion of SBA loans, percent	0.90

BUSINESS COMBINATIONS - Acquired Assets and Assumed Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Nov. 01, 2021	Dec. 31, 2022	Dec. 31, 2020
Consideration:
Goodwill		$ 403,771		$ 404,452	$ 370,840
North Avenue Capital, LLC
Assets acquired
Cash and cash equivalents	$ 1,978	1,978
LHI	28,657	29,338
Servicing asset	13,913	13,913
Other assets	690	690
Total assets acquired	45,238	45,919
Liabilities assumed
Accounts payable and other accrued expenses	16,350	16,350
Total liabilities assumed	16,350	16,350
Fair value of net assets acquired	28,888	29,569
Consideration:
Cash paid	57,500	57,500	$ 57,500
Contingent consideration	5,000	5,000
Total fair value of consideration	62,500	62,500
Goodwill	33,612	$ 32,931
LHI, Measurement Period Adjustments	(681)
Measurement Period Adjustments	(681)
Fair value of net assets acquired, Measurement Period Adjustments	(681)
Goodwill, Measurement Period Adjustments	$ 681

LHI AND ACL - Nonaccrual (Details) - USD ($) $ in Thousands	12 Months Ended
LHI AND ACL - Nonaccrual (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Loans and Allowance for Loan Losses
Nonaccrual	$ 43,542	$ 49,687
Nonaccrual With No ACL	25,275	20,428
Financing receivable, nonaccrual, interest income	6,567	2,718
Commercial
Loans and Allowance for Loan Losses
Nonaccrual	11,397	15,267
Nonaccrual With No ACL	2,521	4,207
Consumer
Loans and Allowance for Loan Losses
Nonaccrual	169	1,216
Nonaccrual With No ACL	169	1,216
1 - 4 family residential \| Residential Real Estate \| Real Estate
Loans and Allowance for Loan Losses
Nonaccrual	862	990
Nonaccrual With No ACL	862	990
OOCRE \| Commercial Real Estate \| Real Estate
Loans and Allowance for Loan Losses
Nonaccrual	9,737	14,236
Nonaccrual With No ACL	8,545	13,824
NOOCRE \| Commercial Real Estate \| Real Estate
Loans and Allowance for Loan Losses
Nonaccrual	21,377	17,978
Nonaccrual With No ACL	13,178	191
PCD Loans
Loans and Allowance for Loan Losses
Nonaccrual With No ACL	13,178
Financing receivable, nonaccrual, interest income	$ 8,545	$ 11,056

DEPOSITS - Summary of Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Statistical Disclosure for Banks [Abstract]
Noninterest-bearing demand accounts	$ 2,640,617	$ 2,510,723
Interest-bearing demand accounts	622,814	579,408
Savings accounts	118,293	128,061
Limited access money market accounts	3,654,868	2,568,843
Certificates of deposit, greater than $250	853,659	651,345
Certificates of deposit, less than $250	1,232,983	925,235
Total deposits	$ 9,123,234	$ 7,363,615

INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Operating Loss Carryforwards [Line Items]
Taxes payable, current	$ 573	$ 806
Other Assets
Operating Loss Carryforwards [Line Items]
Current tax receivable	1,741	9,366
Deferred tax asset	$ 37,826	$ 2,070

SHARE TRANSACTIONS - Summary of Shares Repurchased (Details) - Common Stock - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Equity, Class of Treasury Stock [Line Items]
Number of shares repurchased (in shares)	0	475,744
Weighted average price per share (in dollars per share)	$ 0	$ 32.36

INCOME TAXES - Reconciliation of Statutory Rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Federal income tax expense rate at 21% for December 31, 2022, 2021 and 2020	$ 39,193	$ 37,024	$ 18,498
Bank-owned life insurance	(448)	(852)	(407)
Non-deductible transaction costs	0	78	0
Tax exempt interest income	(579)	(545)	(452)
Deferred tax true up	54	24	(1,181)
162(m) Disallowance	1,183	504	65
State taxes, net of federal benefit	1,769	1,039	902
Excess benefit on share-based compensation	(1,056)	(838)	(1,435)
Net Operating Loss ("NOL") Carryback	0	0	(1,799)
Other	203	288	12
Total income tax expense	$ 40,319	$ 36,722	$ 14,203
Effective tax rate	21.60%	20.80%	16.10%

RELATED PARTY TRANSACTIONS (Details) - Employees, Officers, Directors and Affiliates - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Related Party Transaction [Line Items]
Financing receivable with related parties	$ 35,005	$ 12,651
New advances to the company's employees, officers, directors and their affiliates	33,624	6,185
Principal payments received from the loans to employees, officers, directors, and their affiliates	11,270	16,976
Financing receivable no longer related party transactions		11,502
Unfunded commitments to related parties	7,895	4,028
Deposits received from related parties	$ 275,807	$ 303,190

LHI AND ACL - Servicing Assets (Details) - USD ($)	12 Months Ended
LHI AND ACL - Servicing Assets (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Servicing Asset at Amortized Cost [Line Items]
Servicing asset	$ 543,220,000	$ 509,977,000
Summary of changes in related servicing assets
Balance at beginning of year	17,705,000	3,363,000
Servicing assets acquired through acquisition	0	13,913,000
Increase from loan sales	2,670,000	1,330,000
Servicing asset impairment, net of recoveries	(1,823,000)	(71,000)
Amortization charged as a reduction to income	(3,672,000)	(830,000)
Balance at year-end	14,880,000	17,705,000	$ 3,363,000
Valuation allowance recorded	2,451,000	628,000
Proceeds from sale of loans	61,130,000	112,606,000	125,375,000
Gain on sale of loans	550,000	1,592,000	1,239,000
Small Business Administration Loans
Summary of changes in related servicing assets
Proceeds from sale of loans	9,491,000	40,001,000	41,488,000
Gain on sale of loans	848,000	4,911,000	3,379,000
USDA Loans
Summary of changes in related servicing assets
Proceeds from sale of loans	72,670,000	0	0
Gain on sale of loans	10,731,000	0	$ 0
Interest-Only-Strip
Summary of changes in related servicing assets
Interest receivable	$ 0	$ 0

EMPLOYEE BENEFITS	12 Months Ended
EMPLOYEE BENEFITS	Dec. 31, 2022
Retirement Benefits [Abstract]
EMPLOYEE BENEFITS	EMPLOYEE BENEFITS Defined Contribution Plan The Company maintains a retirement savings 401(k) profit sharing plan (the “Plan”) in which substantially all employees may participate. The Plan allows employees to make discretionary “before tax” contributions through salary reductions under section 401(k) of the Internal Revenue Code. The Company may make a discretionary match of employees’ contributions based on a percentage of salary deferrals and certain discretionary profit sharing contributions. For the year ended December 31, 2022 and 2021, the company made matching contributions of $4,661 and $3,755, respectively.

SECURITIES (Tables)

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Schedule of Gross Unrealized Gain Recognized on Equity Securities


	2022		2021		2020
Unrealized (loss) gain recognized on equity securities with a readily determinable fair value	$	(1,246)	$	(325)	$	480

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

The amortized cost, related gross unrealized gains and losses, ACL and the fair value of AFS and HTM debt securities are as follows:


	December 31, 2022
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		ACL		Fair Value
AFS
Corporate bonds	$	268,179	$	1,445	$	17,379	$	—	$	252,245
Municipal securities	49,886		3		4,198		—		45,691
Mortgage-backed securities	156,408		23		17,420		—		139,011
Collateralized mortgage obligations	609,456		—		55,850		—		553,606
Asset-backed securities	42,015		289		2,613		—		39,691
Collateralized loan obligations	69,750		—		3,702		—		66,048
	$	1,195,694	$	1,760	$	101,162	$	—	$	1,096,292

			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		ACL		Fair Value
HTM
Mortgage-backed securities	$	36,342	$	—	$	6,753	$	—	$	29,589
Collateralized mortgage obligations	36,169		—		5,884		—		30,285
Municipal securities	113,657		6		14,756		—		98,907
	$	186,168	$	6	$	27,393	$	—	$	158,781


	December 31, 2021
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		ACL		Fair Value
AFS

Corporate bonds	$	198,396	$	10,294	$	178	$	—	$	208,512
Municipal securities	116,100		8,261		431		—		123,930
Mortgage-backed securities	124,230		4,326		1,489		—		127,067
Collateralized mortgage obligations	424,174		12,240		2,350		—		434,064
Asset-backed securities	53,466		1,616		519		—		54,563
Collateralized loan obligations	45,089		—		167		—		44,922
	$	961,455	$	36,737	$	5,134	$	—	$	993,058

			Gross		Gross
	Amortized		Unrealized		Unrealized
HTM	Cost		Gains		Losses		ACL		Fair Value
Mortgage-backed securities	$	25,767	$	45	$	508	$	—	$	25,304
Collateralized mortgage obligations	5,490		560		—		—		6,050
Municipal securities	28,179		2,015		102		—		30,092
	$	59,436	$	2,620	$	610	$	—	$	61,446

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


	December 31, 2022
	Less Than 12 Months				12 Months or More				Totals
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Loss		Value		Loss		Value		Loss
AFS

Corporate bonds	$	197,946	$	15,697	$	15,568	$	1,682	$	213,514	$	17,379
Municipal securities	33,919		848		8,813		3,350		42,732		4,198
Mortgage-backed securities	115,467		11,104		22,780		6,317		138,247		17,421
Collateralized mortgage obligations	482,358		42,553		71,198		13,296		553,556		55,849
Asset-backed securities	15,195		991		11,207		1,621		26,402		2,612
Collateralized loan obligations	23,673		1,328		42,375		2,375		66,048		3,703
	$	868,558	$	72,521	$	171,941	$	28,641	$	1,040,499	$	101,162

HTM
Mortgage-backed securities	$	804	$	85	$	28,784	$	6,668	$	29,588	$	6,753
Collateralized mortgage obligations	25,285		4,676		4,999		1,208		30,284		5,884
Municipal securities	85,671		11,411		9,161		3,345		94,832		14,756
	$	111,760	$	16,172	$	42,944	$	11,221	$	154,704	$	27,393


	December 31, 2021
	Less Than 12 Months				12 Months or More				Totals
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Loss		Value		Loss		Value		Loss
AFS

Corporate bonds	$	7,072	$	178	$	—	$	—	$	7,072	$	178
Municipal securities	12,704		194		4,350		237		17,054		431
Mortgage-backed securities	40,276		1,283		4,677		206		44,953		1,489
Collateralized mortgage obligations	106,063		2,350		—		—		106,063		2,350
Asset-backed securities	11,265		519		—		—		11,265		519
Collateralized loan obligations	44,922		167		—		—		44,922		167
	$	222,302	$	4,691	$	9,027	$	443	$	231,329	$	5,134

HTM
Mortgage-backed securities	$	24,214	$	508	$	—	$	—	$	24,214	$	508
Collateralized mortgage obligations	—		—		—		—		—		—
Municipal securities	4,583		102		—		—		4,583		102
	$	28,797	$	610	$	—	$	—	$	28,797	$	610

Schedule of Amortized Costs and Estimated Fair Values of Securities Available for Sale, By Contractual Maturity

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


	December 31, 2022
	AFS				HTM
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value

Due from one year to five years	$	53,692	$	54,179	$	—	$	—
Due from five years to ten years	205,911		190,406		8,275		8,129
Due after ten years	58,462		53,351		105,382		90,778
	318,065		297,936		113,657		98,907
Mortgage-backed securities and collateralized mortgage obligations	765,864		692,617		72,511		59,874
Asset-backed securities	42,015		39,691		—		—
Collateralized loan obligations	69,750		66,048		—		—
	$	1,195,694	$	1,096,292	$	186,168	$	158,781


	December 31, 2021
	AFS				HTM
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value

Due from one year to five years	$	5,201	$	5,241	$	—	$	—
Due from five years to ten years	178,203		186,972		3,849		4,115
Due after ten years	131,092		140,229		24,330		25,977
	314,496		332,442		28,179		30,092
Mortgage-backed securities and collateralized mortgage obligations	548,404		561,131		31,257		31,354
Asset-backed securities	53,466		54,563		—		—
Collateralized loan obligations	45,089		44,922		—		—
	$	961,455	$	993,058	$	59,436	$	61,446

Schedule of Proceeds From Sales of Debt Securities Available for Sale and Gross Gains and Losses

Proceeds from sales of debt securities AFS and gross realized gains and losses for the years ended December 31, 2022, 2021 and 2020 were as follows:


	December 31,
	2022		2021		2020
Proceeds from sales	$	—	$	13,300	$	113,771
Gross realized gains	—		—		2,879
Gross realized losses	—		188		256

STOCK AND INCENTIVE PLANS (Tables)

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Summary of Option Activity

A summary of the status of options granted under the 2010 Incentive Plan at December 31, 2022, 2021 and 2020 and changes during the years then ended is presented below:


	2010 Incentive Plan
	Nonperformance-based stock options
	Shares Underlying Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at December 31, 2019	257,500	$	10.28	1.37 years



Exercised	(237,500)	10.12
Outstanding at December 31, 2020	20,000	$	10.09	1.06 years



Exercised	(19,000)	10.00
Outstanding at December 31, 2021	1,000	$	10.43	1.07 years




Outstanding and exercisable at December 31, 2022	1,000	$	10.43	1.07 years	$	43

A summary of the status of the Company’s stock options under the 2022 Equity Plan as of December 31, 2022, 2021 and 2020, and changes during the years then ended, is as follows:


	2022 Equity Plan
	Nonperformance-based stock options
	Equity Awards
	Shares Underlying Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at December 31, 2019	849,768	$	23.61	8.24 years
Granted	185,025	26.73
Forfeited	(25,053)	27.37

Exercised	(33,939)	19.10
Outstanding at December 31, 2020	975,801	$	24.26	7.45 years
Granted	500	$	36.54

Forfeited	(13,996)	25.93

Exercised	(252,262)	23.87
Outstanding at December 31, 2021	710,043	$	24.38	6.91 years
Granted	1,500	$	31.26



Exercised	(54,049)	23.51
Outstanding at December 31, 2022	657,494	$	24.47	5.58 years	$	2,547
Options exercisable at December 31, 2022	550,454	$	24.64	5.30 years	$	2,019
Weighted average fair value of options granted during the period		$	31.26

A summary of the status of the Company’s stock options under the Veritex (Green) 2014 Plan as of December 31, 2022, 2021 and 2020 changes during the years then ended is as follows:


	Veritex (Green) 2014 Plan
	Non-performance Based Stock Options
	Shares Underlying Options	Weighted Exercise Price		Weighted Average Contractual Term	Aggregate Intrinsic Value
Outstanding at December 31, 2019	386,969	$	19.30
Granted	31,075	29.13
Forfeited	(30,711)	20.92

Exercised	(35,333)	19.42
Outstanding at December 31, 2020	352,000	$	19.99
Forfeited	(7,245)	21.38
Exercised	(126,951)	20.55
Outstanding at December 31, 2021	217,804	$	19.62
Exercised	(62,592)	19.59
Outstanding at December 31, 2022	155,212	$	19.83	5.20 years	$	1,321
Options exercisable at December 31, 2022	145,696	$	19.16	5.07 years	$1,321

A summary of the status of the Company’s stock options under the Green 2010 Plan as of December 31, 2022, 2021 and 2020 and changes during the years then ended, is as follows:


	Green 2010 Plan
	Non-performance Based Stock Options
	Shares Underlying Options	Weighted Exercise Price		Weighted Average Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1, 2019	571,735	$	10.64
Exercised	(440,652)	10.35
Outstanding at December 31, 2020	131,083	$	11.60



Forfeited	(2,198)	13.69
Exercised	(62,742)	10.51
Outstanding at December 31, 2021	66,143	$	12.56
Cancelled	(21,235)	11.40


Exercised	(1,746)	13.20
Outstanding and exercisable at December 31, 2022	43,162	$	13.11	2.03 years	$	646

Schedule of Fair Value of Stock Options Exercised or Restricted Stock Units Vested

A summary of the fair value of the Company’s stock options exercised vested under the 2010 Incentive Plan as of December 31, 2022, 2021 and 2020 is presented below:


	Fair Value of Options Exercised or Restricted Stock Units Vested as of December 31,
	2022		2021		2020
Nonperformance-based stock options exercised	$	—	$	568	$	6,579

A summary of the fair value of the Company’s stock options exercised and restricted stock units vested under the 2022 Equity Plan as of December 31, 2022, 2021 and 2020 is presented below:


	Fair Value of Options Exercised, RSUs and PSUs Vested as of December 31,
	2022		2021		2020
Nonperformance-based stock options exercised	$	792	$	9,214	$	954
RSUs vested	6,356		2,781		2,529
PSUs vested	4,040		—		36

A summary of the fair value of the Company’s stock options exercised and RSUs vested under the Veritex (Green) 2014 Plan during the year ended December 31, 2022, 2021 and 2020 is presented below:


	Fair Value of Options Exercised or Restricted Stock Units Vested in the year ended December 31,
	2022		2021		2020
Non-performance-based stock options exercised	$	1,157	$	4,599	$	1,021
RSUs vested	1,312		713		828
PSUs vested	1,261		—		—

A summary of the fair value of the Company’s stock options exercised under the Green 2010 Plan during the year ended December 31, 2022, 2021, and 2020 is presented below:


	Fair Value of Options Exercised in the year ended December 31,
	2022		2021		2020
Non-performance-based stock options exercised	$	47	$	1,838	$	12,231

Summary of Stock Compensation Expense

Stock compensation expense of options, RSUs and PSUs granted under the 2022 Equity Plan and the Veritex (Green) 2014 Plan was as follows:


	Year ended December 31,
	2022		2021
2022 Equity Plan	$	11,109	$	8,614
Veritex (Green) 2014 Plan	820		1,959

Summary of Status of the Company's Restricted Stock Units and Performance-based Stock Units

A summary of the status of the Company’s RSUs under the 2022 Equity Plan as of December 31, 2022, 2021 and 2020, and changes during the year then ended is as follows:


	2022 Equity Plan
	RSUs
	Equity Awards
	Units	Weighted Average Grant Date Fair Value
Outstanding at December 31, 2019	175,688	$	21.65
Granted	360,400	20.38
Vested into shares	(93,377)	24.73
Forfeited	(1,579)	29.13

Outstanding at December 31, 2020	441,132	$	20.39
Granted	281,149	28.68

Vested into shares	(108,732)	24.19
Forfeited	(15,498)	28.47
Outstanding at December 31, 2021	598,051	$	23.39
Granted	546,405	33.79

Vested into shares	(175,159)	27.88
Forfeited	(14,193)	33.18
Outstanding at December 31, 2022	955,104	$	28.38

A summary of the status of the Company’s PSUs under the 2022 Equity Plan as of December 31, 2022, 2021 and 2020, and changes during the years then ended is as follows:


	2022 Equity Plan
	PSUs
	Equity Awards
	Units	Weighted Average Grant Date Fair Value
Outstanding at December 31, 2019	63,727	$	22.76
Granted	39,398	25.94
Vested into shares	(1,841)	19.69
Forfeited	(1,089)	19.69
Outstanding at December 31, 2020	100,195	$	23.20
Granted	56,276	25.94

Outstanding at December 31, 2021	156,471	$	24.17
Granted	39,429	40.38
Incremental PSUs granted upon performance conditions met	34,194	23.90
Vested into shares	(103,387)	22.79

Outstanding at December 31, 2022	126,707	$	31.19

A summary of the status of the Company’s RSUs under the Veritex (Green) 2014 Plan as of December 31, 2022, 2021 and 2020 and changes during the years then ended, is as follows:


	Veritex (Green) 2014 Plan
	RSUs
	Units	Weighted Average Grant Date Fair Value
Outstanding at December 31, 2019	116,250	$	21.38
Granted	93,918	21.36


Outstanding at Vested into shares	(38,744)	21.38
Outstanding at Forfeited	(15,237)	23.62
Outstanding at December 31, 2020	156,187	$	22.64
Granted	5,692	26.12
Vested into shares	(33,335)	21.38
Forfeited	(5,760)	25.21
Outstanding at December 31, 2021	122,784	$	21.13
Granted	4,231	40.38
Vested into shares	(32,931)	21.80
Forfeited	(7,851)	29.13
Outstanding at December 31, 2022	86,233	$	21.09

A summary of the status of the Company’s PSUs under the Veritex (Green) 2014 Plan as of December 31, 2022, 2021 and 2020 and changes during the years then ended, is as follows:


	Veritex (Green) 2014 Plan
	PSUs
	Units	Weighted Average Grant Date Fair Value
Outstanding at December 31, 2019	25,320	$	21.38
Granted	8,531	25.94

Forfeited	(3,123)	19.69
Outstanding at December 31, 2020	30,728	$	21.43
Granted	6,231	25.94

Forfeited	(1,060)	19.69
Outstanding at December 31, 2021	35,899	$	22.26
Granted	4,411	40.38
Incremental PSUs granted upon performance condition met	10,566	19.69
Vested into shares	(31,703)	21.38

Outstanding at December 31, 2022	19,173	$	30.74

Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Restricted stock units
Shares withheld to cover tax withholdings (in shares)	83,447	23,613	22,404
Employee Stock Option
Shares withheld to cover tax withholdings (in shares)	6,904	13,015	100,400
Shares paid for exercise (in shares)	28,064	71,089	145,044

LEASES - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Lessee, Lease, Description [Line Items]
Operating lease, right-of-use asset	$ 16,762	$ 17,060
Total lease liability	$ 17,327	$ 18,023
Operating lease, right of use asset, balance sheet location [Extensible List]	Other assets	Other assets
Operating lease liability, balance sheet location [Extensible List]	Accounts payable and other liabilities	Accounts payable and other liabilities
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term (in years)	1 year
Extension options (in years)	5 years
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term (in years)	8 years
Extension options (in years)	10 years

DEPOSITS - Scheduled Maturities of Certificates of Deposit (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Statistical Disclosure for Banks [Abstract]
2023	$ 1,954,852
2024	102,339
2025	19,391
2026	6,396
2027	3,664
Total	$ 2,086,642	$ 1,576,580

SHARE TRANSACTIONS - Narrative (Details) - USD ($)				12 Months Ended
SHARE TRANSACTIONS - Narrative (Details) - USD ($)	Mar. 14, 2022	Mar. 10, 2022	Mar. 08, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Subsidiary, Sale of Stock [Line Items]
Net proceeds on sale of common stock in public offering	$ 154,372,000			$ 154,415,000	$ 0	$ 0
Common Stock
Subsidiary, Sale of Stock [Line Items]
Stock repurchase program, authorized amount				$ 250,000,000
Public Offering
Subsidiary, Sale of Stock [Line Items]
Sale of stock, number of shares issued in transaction (in shares)			3,947,369
Sale of stock, price per share (in dollars per share			$ 38.00
Over-Allotment Option
Subsidiary, Sale of Stock [Line Items]
Sale of stock, number of shares issued in transaction (in shares)		367,105
Sale of stock, price per share (in dollars per share		$ 38.00

INCOME TAXES - Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income tax expense (benefit):
Current	$ 45,981	$ 32,075	$ 23,587
Deferred	(5,662)	4,647	(9,384)
Total income tax expense	$ 40,319	$ 36,722	$ 14,203

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

EMPLOYEE BENEFITS (Details) - USD ($) $ in Thousands	12 Months Ended
EMPLOYEE BENEFITS (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Retirement Benefits [Abstract]
Matching contributions to 401(k) profit sharing Plan	$ 4,661	$ 3,755

SUBORDINATED DEBENTURES AND SUBORDINATED NOTES - Summary (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Subordinated debentures and subordinated notes	$ 228,775	$ 227,764
Junior Subordinated Debt
Debt Instrument [Line Items]
Subordinated debentures and subordinated notes	30,686	30,465
Unamortized discount (premium), net	(3,182)	(3,403)
Subordinated Debt
Debt Instrument [Line Items]
Subordinated debentures and subordinated notes	198,089	197,299
Debt issuance costs, net	$ (1,911)	$ (2,701)

DERIVATIVE FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS

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

The fair value of derivative positions outstanding is included in other assets and accounts payable and other liabilities on the Company's consolidated balance sheets and in the net change in each of these financial statement line items in the Company's consolidated statements of cash flows. For derivatives not designated as hedging instruments, swap fee income and gains and losses due to changes in fair value are included in noninterest income and the operating section of the Company's consolidated statement of cash flows. For derivatives designated as hedging instruments, the entire change in the fair value related to the derivative instrument is recognized as a component of other comprehensive income and subsequently reclassified into interest income when the forecasted transaction affects income. The notional amounts and estimated fair values as of December 31, 2022 and December 31, 2021 were as shown in the table below.


	December 31, 2022						December 31, 2021
			Estimated Fair Value						Estimated Fair Value
	Notional Amount		Asset Derivative		Liability Derivative		Notional Amount		Asset Derivative		Liability Derivative
Derivatives designated as hedging instruments (cash flow hedges):
Interest rate swap on money market deposit account payments	$	250,000	$	21,234	$	—	$	250,000	$	4,541	$	—
Interest rate swaps on customer loan interest payments	375,000		—		49,211		375,000		2,460		1,404
Interest rate collars on customer loan interest payments	450,000		3,267		4,960		—		—		—
Interest rate floor on customer loan interest payments	100,000		2,022		—		—		—		—
Total derivatives designated as hedging instruments	$	1,175,000	$	26,523	$	54,171	$	625,000	$	7,001	$	1,404

Derivatives not designated as hedging instruments:
Financial institution counterparty:
Interest rate swaps	$	805,311	$	38,839	$	1,126	$	379,787	$	1,527	$	3,498
Interest rate caps and collars	68,370		1,494		—		41,916		—		1
Commercial customer counterparty:
Interest rate swaps	805,311		1,004		38,188		379,787		3,261		1,442
Interest rate caps and collars	68,370		—		1,494		41,916		1		—
Total derivatives not designated as hedging instruments	$	1,747,362	$	41,337	$	40,808	$	843,406	$	4,789	$	4,941
Offsetting derivative assets/liabilities			(30,982)		(30,982)				(2,609)		(2,609)
Total derivatives	$	2,922,362	$	36,878	$	63,997	$	1,468,406	$	9,181	$	3,736

Pre-tax gain (loss) included in the Company's consolidated statements of income and related to derivative instruments for the years ended December 31, 2022 and 2021 was as follows:


	For the Year Ended December 31, 2022						For the Year Ended December 31, 2021
	Net (loss) gain recognized in other comprehensive income on derivative		Gain (loss) reclassified from accumulated other comprehensive income into income		Location of gain (loss) reclassified from accumulated other comprehensive income into income		Net gain (loss) recognized in other comprehensive income on derivative		(Loss) gain reclassified from accumulated other comprehensive income into income		Location of (loss) gain reclassified from accumulated other comprehensive income into income
Derivatives designated as hedging instruments (cash flow hedges):
Interest rate swap on borrowing advances	$	(3,569)	$	3,569	Interest Expense		$	26,357	$	—	Interest Expense
Interest rate swap on money market deposit account payments	16,693		3,208		Interest Expense		6,995		(803)		Interest Expense
Commercial loan interest rate floor	—		—		Interest Income		—		866		Interest Income
Interest rate swaps, collars and floor on customer loan interest payments	(54,623)		(1,757)		Interest Income		(14)		3,714
Total	$	(41,499)	$	5,020			$	33,338	$	3,777


					Net Gain recognized in other noninterest income						Loss recognized in other noninterest income
Derivatives not designated as hedging instruments:
Interest rate swaps, caps and collars					$	7,217					$	1,913

Cash Flow Hedges

In October 2022, the Company entered into an interest rate floor for a notional amount of $100,000 to hedge for changes in cash flows attributable to changes in the contractually specified interest rate, currently the 1M SOFR CME rate on a pool of customer floating rate loans from November 2022 through October 2025. The Company also entered into an interest rate collar for a notional amount of $100,000 to hedge for changes in cash flows attributable to changes in the contractually specified interest rate, currently the 1M SOFR CME rate on a separate pool of customer floating rate loans from November 2022 through October 2026.

In August 2022, the Company entered into an interest rate collar for a notional amount of $350,000 to hedge for changes in it's cash flows attributable to changes in the contractually specified interest rate, currently the 1M SOFR CME rate of it's customer floating rate loan portfolio from August 2022 through August 2025.

In March 2021, the Company entered into three fixed receive/pay variable interest rate swaps, each with a notional amount of $125,000, to hedge the variability of cash flow payments attributable to changes in interest rates in regards to forecasted of three-month attributable to changes in interest rates in regards to forecasted money market account borrowings from March 2021 through March 2028 and March 2021 through March 2031.

In March 2020, the Company entered into an interest rate swap for a notional amount of $500,000 to hedge the variability of cash flow payments attributable to changes in interest rates in regards to forecasted issuances of three-month term debt arrangements every three months from March 2022 through March 2032. These forecasted borrowings can be sourced from an FHLB advance, repurchase agreement, brokered certificate of deposit or some combination. The interest rate swap was terminated on February 24, 2021. The pre-tax gain of $43,900, resulting from the termination of the interest rate swap, will remain in other comprehensive income (loss) and will be accreted over a 10 year period starting in March 2022 unless forecasted transactions become probable of not occurring. The gain accreted into income during the twelve months ended December 31, 2022 was $3,569.

In March 2020, the Company entered into an interest rate swap for a notional amount of $250,000 to hedge the variability of cash flow payments attributable to changes in interest rates in regards to forecasted money market account borrowings from March 2020 through March 2025.

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

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

The following is a summary of the interest rate swaps outstanding as of December 31, 2022 and December 31, 2021.


	December 31, 2022
	Notional Amount		Fixed Rate	Floating Rate	Maturity	Fair Value
Non-hedging derivative instruments:
Customer interest rate derivative:
Interest rate swaps - receive fixed/pay floating	$	805,311	2.410% - 8.470%	LIBOR 1 month + 2.750% - 5.000% SOFR CME 1 month + —%- 3.750% SOFR - NYFD 30 day average + 2.500% - 2.964%	Wtd. Avg. 5.1 years	$	(37,183)
Interest rate caps and collars	$	68,370	3.500%	LIBOR 1 month + 0.00%	Wtd. Avg. 1.8 years	$	(1,494)

Correspondent interest rate derivative:
Interest rate swaps - pay fixed/receive floating	$	805,311	2.41% - 8.470%	LIBOR 1 month + 2.750% - 5.000% SOFR CME 1 month + —%- 3.750% SOFR - NYFD 30 day average + 2.500% - 2.964%	Wtd. Avg. 5.1 years	$	37,713
Interest rate caps and collars	$	68,370	3.500%	LIBOR 1 month + 0.00%	Wtd. Avg. 1.8 years	$	1,494


	December 31, 2021
	Notional Amount		Fixed Rate	Floating Rate	Maturity	Fair Value
Non-hedging derivative instruments:
Customer interest rate derivative:
Interest rate swaps - receive fixed/pay floating	$	379,787	2.97% - 8.47%	LIBOR 1 month + 2.20% - 5.00% SOFR CME 1 month + 2.48% - 2.90% SOFR - NYFD 30 day average + 2.50% - 2.964%	Wtd. Avg. 4.8 years	$	1,820
Interest rate caps and collars	$	41,916	3.00% / 5.00%	LIBOR 1 month + 0.00% - 2.50%	Wtd. Avg. 0.6 years	$	1

Correspondent interest rate derivative:
Interest rate swaps - pay fixed/receive floating	$	379,787	2.97% - 8.47%	LIBOR 1 month + 2.20% - 5.00% SOFR CME 1 month + 2.48% - 2.90% SOFR - NYFD 30 day average + 2.50% - 2.964%	Wtd. Avg. 4.8 years	$	(1,972)
Interest rate caps and collars	$	41,916	2.50% / 3.00%	LIBOR 1 month + 0.00%	Wtd. Avg. 0.6 years	$	(1)

SECURITIES - Proceeds From Sale of Debt Securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]
Proceeds from sales of AFS debt securities	$ 0	$ 13,300	$ 113,771
Gross realized gains	0	0	2,879
Gross realized losses	$ 0	$ 188	$ 256

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Components of Provision for Income Taxes

The provision for income taxes is summarized as follows:


	Year Ended December 31,
	2022		2021		2020
Income tax expense (benefit):
Current	$	45,981	$	32,075	$	23,587
Deferred	(5,662)		4,647		(9,384)
	$	40,319	$	36,722	$	14,203

Schedule of Effective Income Tax Rate Reconciliation


	Year Ended December 31,
	2022			2021			2020
Federal income tax expense rate at 21% for December 31, 2022, 2021 and 2020	$	39,193		$	37,024		$	18,498
Bank-owned life insurance	(448)			(852)			(407)
Non-deductible transaction costs	—			78			—
Tax exempt interest income	(579)			(545)			(452)

Deferred tax true up	54			24			(1,181)
162(m) Disallowance	1,183			504			65
State taxes, net of federal benefit	1,769			1,039			902
Excess benefit on share-based compensation	(1,056)			(838)			(1,435)
Net Operating Loss ("NOL") Carryback	—			—			(1,799)
Other	203			288			12
Total income tax expense	$	40,319		$	36,722		$	14,203
Effective tax rate	21.6		%	20.8		%	16.1		%

Schedule of Significant Components of the Deferred Tax Assets and Liabilities

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


	December 31,
	2022		2021
Deferred tax assets:

ACL	$	21,647	$	18,274
Equity compensation	4,286		4,111
Purchase premium/loan discounts	1,546		1,555

Lease liability	3,708		3,785
Net unrealized loss on debt securities AFS	17,204		—
Purchased securities	2,520		2,507
Other	9,219		6,320
Total deferred tax assets	$	60,130	$	36,552
Deferred tax liabilities:
Intangibles	9,340		10,372
Bank premises and equipment	6,163		5,773
ROU asset	3,587		3,583
Net unrealized gain on debt securities AFS	—		17,030
Other	3,214		1,864
Total deferred tax liabilities	22,304		38,622
Net deferred tax asset (liability)	$	37,826	$	(2,070)

Schedule of Unrecognized Tax Benefits Roll Forward

The following table provides a rollforward of the Company's gross federal and state unrecognized tax benefits for the years ending December 31, 2022, 2021 and 2020.


	December 31
	2022		2021		2020
Unrecognized tax benefits at the beginning of the year:	$	503	$	549	$	—
Gross increases, related to tax positions taken in a prior period	—		—		281
Gross decreases, related to tax positions taken in a prior period	(44)		(101)		—
Gross increases, related to tax positions taken in current period	75		55		268
Settlement with taxing authority	(241)		—		—
Unrecognized tax benefits at the end of the year	$	293	$	503	$	549

PARENT COMPANY ONLY FINANCIAL STATEMENTS - Cash Flow (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
OPERATING ACTIVITIES:
Net income	$ 146,315	$ 139,584	$ 73,883
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Equity in undistributed net income of Bank	5,141	(5,760)	0
Net cash provided by operating activities	192,726	193,491	107,650
INVESTING ACTIVITIES:
Net cash used in investing activities	(2,399,378)	(816,389)	(874,555)
FINANCING ACTIVITIES:
Proceeds from issuance of subordinated notes, net of debt issuance costs paid	0	0	123,026
Proceeds from exercise of stock warrants	0	165	109
Redemption of subordinated debt	0	(35,000)	(5,000)
Proceeds from exercise of employee stock options	1,160	6,313	4,301
Payments to tax authorities for stock-based compensation	(3,363)	(725)	(3,829)
Purchase of treasury stock	0	(15,509)	(57,470)
Dividends paid	(42,289)	(36,543)	(34,057)
Net cash provided by financing activities	2,262,945	771,857	746,180
Net increase (decrease) in cash and cash equivalents	56,293	148,959	(20,725)
Cash and cash equivalents at beginning of year	379,784	230,825	251,550
Cash and cash equivalents at end of year	436,077	379,784	230,825
Veritex Holdings, Inc.
OPERATING ACTIVITIES:
Net income	146,315	139,584	73,883
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Amortization of debt discount and debt issuance costs, net	790	817	1,263
Equity in undistributed net income of Bank	(121,350)	(142,289)	(16,693)
(Increase) decrease in other assets	(7,801)	902	(1,853)
Decrease (increase) in other liabilities	504	(3,177)	726
Net cash provided by operating activities	18,458	(4,163)	57,326
INVESTING ACTIVITIES:
Advances to subsidiaries	(154,610)	0	0
Net cash used in investing activities	(154,610)	0	0
FINANCING ACTIVITIES:
Proceeds from issuance of subordinated notes, net of debt issuance costs paid	0	0	123,026
Net proceeds from sale of common stock in public offering	154,415	0	0
Proceeds from exercise of stock warrants	0	165	109
Redemption of subordinated debt	0	(35,000)	(5,000)
Proceeds from exercise of employee stock options	1,160	6,313	4,301
Payments to tax authorities for stock-based compensation	(3,363)	(725)	(3,829)
Purchase of treasury stock	0	(15,509)	(57,470)
Dividends paid	(42,289)	(36,543)	(34,057)
Net cash provided by financing activities	109,923	(81,299)	27,080
Net increase (decrease) in cash and cash equivalents	(26,229)	(85,462)	84,406
Cash and cash equivalents at beginning of year	44,507	129,969	45,563
Cash and cash equivalents at end of year	$ 18,278	$ 44,507	$ 129,969

RELATED PARTY TRANSACTIONS	12 Months Ended
RELATED PARTY TRANSACTIONS	Dec. 31, 2022
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS In the ordinary course of business, the Company has and expects to continue to have transactions, including borrowings, with its employees, officers, directors and their affiliates. These loans are on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other unaffiliated persons and do not involve more than normal risk of collectability. The aggregate amounts of such loans were approximately $35,005 and $12,651 as of December 31, 2022 and 2021, respectively. During the year ended December 31, 2022, new advances of approximately $33,624 were made to related parties with approximately $11,270 principal payments received. During the year ended December 31, 2021, new advances of approximately $6,185 were made to related parties with approximately $16,976 principal payments received and approximately $11,502 of loans no longer related party transactions. There were $7,895 and $4,028 in unfunded commitments to related parties as of December 31, 2022 and 2021, respectively. At December 31, 2022, there were no loans to employees, officers, directors or their affiliates that were considered non-performing or potentially problem loans. Deposits received from related parties as of December 31, 2022 and 2021 totaled approximately $275,807 and $303,190, respectively.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Income tax, penalties and interest expense	$ 22	$ 126	$ 143

BUSINESS COMBINATIONS - Loans Acquired (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Nov. 01, 2021
Business Acquisition [Line Items]
Contractual principal balance	$ 8,260	$ 8,657
North Avenue Capital, LLC
Business Acquisition [Line Items]
Total fair value			$ 28,657
Contractual principal balance			29,338
Commercial \| North Avenue Capital, LLC
Business Acquisition [Line Items]
Total fair value			26,519
Real Estate \| North Avenue Capital, LLC
Business Acquisition [Line Items]
Total fair value			$ 2,138

GOODWILL

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL

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


	December 31,
	2022		2021
Balance at beginning of year	$	403,771	$	370,840


NAC acquisition1	681		32,931

Balance at end of year	$	404,452	$	403,771

1During the first quarter of 2022, the purchased accounting adjustments for NAC were finalized resulting in an increase in goodwill during 2022.

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2022
Audit Information [Abstract]
Auditor Name	GRANT THORNTON LLP
Auditor Location	Dallas, Texas
Auditor Firm ID	248

STOCK AND INCENTIVE PLANS - Green Bancorp Inc. 2010 and 2006 Option Plan (Details) - Green Bancorp Inc. 2010 Stock Option Plan - Non-performance Based Stock Options - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Shares Underlying Options
Outstanding at beginning of period (in shares)	66,143	131,083	571,735
Forfeited (in shares)		(2,198)
Cancelled (in shares)	(21,235)
Exercised (in shares)	(1,746)	(62,742)	(440,652)
Outstanding at the end of period (in shares)	43,162	66,143	131,083
Weighted Average Exercise Price
Outstanding at beginning of period (in dollars per share)	$ 12.56	$ 11.60	$ 10.64
Forfeited (in dollars per share)		13.69
Cancelled (in dollars per share)	11.40
Exercised (in dollars per share)	13.20	10.51	10.35
Outstanding at the end of period (in dollars per share)	$ 13.11	$ 12.56	$ 11.60
Outstanding at beginning of year, term (in years)	2 years 10 days
Aggregate intrinsic value of outstanding stock options (in dollars)	$ 646

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Goodwill and Intangible Assets (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Impairment charges	$ 0	$ 0	$ 0
Core deposit intangibles \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful live	7 years
Core deposit intangibles \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful live	10 years

SECURITIES - Narrative (Details) $ in Thousands	Jan. 01, 2022 USD ($) Security	Dec. 31, 2022 investment	Dec. 31, 2021 investment
Investments, Debt and Equity Securities [Abstract]
Number of AFS positions elected for transfer \| Security	25,000
Aggregate fair value of AFS transferred	$ 117,001
Net unrealized holding gain	$ 4,387
Number of investment positions in an unrealized loss position \| investment		175	34

SIGNIFICANT CONCENTRATIONS OF CREDIT RISK	12 Months Ended
SIGNIFICANT CONCENTRATIONS OF CREDIT RISK	Dec. 31, 2022
Risks and Uncertainties [Abstract]
SIGNIFICANT CONCENTRATIONS OF CREDIT RISK	SIGNIFICANT CONCENTRATIONS OF CREDIT RISK Most of the Company’s business activity is with customers located within the Dallas-Fort Worth metroplex and Houston metropolitan area. Such customers are normally also depositors of the Company. The distribution of commitments to extend credit approximates the distribution of loans outstanding. The Company has a diversified loan portfolio, however a significant portion of the Company's loans are collateralized by real estate. Repayment of these loans is in part dependent upon the economic conditions in the market area. The contractual amounts of credit related financial instruments such as commitments to extend credit, MW commitments, credit card arrangements, and letters of credit represent the amounts of potential accounting loss should the contract be fully drawn upon, the customer default, and the value of any existing collateral become worthless.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Equity Method Investments (Details) - USD ($) $ in Thousands		12 Months Ended
	Jul. 16, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Schedule of Equity Method Investments [Line Items]
Purchases of equity method securities		$ 0	$ 54,970	$ 2,888
Goodwill		404,452	403,771	370,840
Equity method investments		55,589	60,730
Equity method investment (loss) income		$ (5,141)	$ 5,760	$ 0
Thrive Mortgage, LLC
Schedule of Equity Method Investments [Line Items]
Ownership percentage	49.00%
Purchases of equity method securities	$ 54,914
Goodwill	$ 35,816

- Definition

+ References + Details

STOCK AND INCENTIVE PLANS - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2010
2010 Stock Option and Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)				1,000,000
Stock based compensation expense	$ 0	$ 0	$ 0
2022 Amended Plan and Green Acquired Omnibus Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period, requirements	1 year
2022 Equity Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ 11,109,000	8,614,000
Veritex (Green) 2014 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ 820,000	1,959,000
Restricted shares \| 2010 Stock Option and Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)				100,000
Term of continuous service for vesting awards (in years)	4 years
Stock option \| 2010 Stock Option and Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)				900,000
Term of continuous service for vesting awards (in years)	5 years
Contractual terms for non-controlling participants (in years)	10 years
Stock option \| 2022 Equity Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense (in dollars)	$ 172,000	803,000	2,470,000
Stock option \| Veritex (Green) 2014 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense (in dollars)	$ 0	100,000	626,000
Requisite service period to recognize compensation cost (in years)	3 months 21 days
Performance-based stock options \| 2010 Stock Option and Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)				500,000
Non-performance Based Stock Options \| 2010 Stock Option and Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense (in dollars)	$ 0	0	0
Restricted stock units \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	3 years
Restricted stock units \| 2022 Equity Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense (in dollars)	$ 17,160,000	10,413,000	8,222,000
Requisite service period to recognize compensation cost (in years)	2 years 6 months 14 days
Restricted stock units \| Veritex (Green) 2014 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense (in dollars)	$ 3,825,000	$ 1,252,000	$ 2,484,000
Requisite service period to recognize compensation cost (in years)	1 year 8 months 8 days

SUBORDINATED DEBENTURES AND SUBORDINATED NOTES (Tables)

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Schedule of Junior Subordinated Debentures and Subordinated Notes

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


	December 31,
	2022		2021
Junior subordinated debentures (1)	$	30,686	$	30,465
Subordinated notes (2)	198,089		197,299
	$	228,775	$	227,764

(1) Junior subordinated debentures are net of a discount of $3,182 and $3,403 as of December 31, 2022 and 2021, respectively.

(2) Subordinated notes include a debt issuance costs of $1,911 and $2,701 as of December 31, 2022 and 2021, respectively.

- Definition

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

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI https://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 3
-Subparagraph (SX 210.12-04(a))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e24072-122690

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI https://asc.fasb.org/extlink&oid=124435984&loc=d3e28541-108399

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI https://asc.fasb.org/extlink&oid=126973232&loc=d3e21506-112644

Reference 5: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 55
-Paragraph 69B
-URI https://asc.fasb.org/extlink&oid=123466577&loc=SL123495735-112612

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI https://asc.fasb.org/extlink&oid=124435984&loc=d3e28551-108399

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 55
-Paragraph 69E
-URI https://asc.fasb.org/extlink&oid=123466577&loc=SL123495743-112612

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI https://asc.fasb.org/extlink&oid=126973232&loc=d3e21521-112644

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI https://asc.fasb.org/extlink&oid=126973232&loc=d3e21538-112644

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI https://asc.fasb.org/extlink&oid=123599511&loc=d3e64711-112823

Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI https://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI https://asc.fasb.org/extlink&oid=126973232&loc=d3e21475-112644

+ Details

PARENT COMPANY ONLY FINANCIAL STATEMENTS - Income Statement (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Condensed Income Statements, Captions [Line Items]
Other	$ 4,720	$ 3,237	$ 3,320
Total interest and dividend income	449,410	316,484	321,850
Salaries and employee benefits	117,841	94,748	79,453
Other	18,314	15,149	14,192
Total noninterest expense	203,075	167,712	159,387
Income before income tax expense	186,634	176,306	88,086
Income tax expense	40,319	36,722	14,203
NET INCOME	146,315	139,584	73,883
Veritex Holdings, Inc.
Condensed Income Statements, Captions [Line Items]
Cash dividends from subsidiary	35,000	8,440	65,000
Excess of earnings over dividend from subsidiary	121,350	142,289	16,693
Other	43	43	53
Total interest and dividend income	156,393	150,772	81,746
Interest on borrowings	11,156	12,426	8,529
Salaries and employee benefits	685	668	612
Other	891	1,057	798
Total noninterest expense	12,732	14,151	9,939
Income before income tax expense	143,661	136,621	71,807
Income tax expense	(2,654)	(2,963)	(2,076)
NET INCOME	$ 146,315	$ 139,584	$ 73,883

DEPOSITS

12 Months Ended

Dec. 31, 2022

Statistical Disclosure for Banks [Abstract]

DEPOSITS

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


	December 31,
	2022		2021
Noninterest-bearing demand accounts	$	2,640,617	$	2,510,723
Interest-bearing demand accounts	622,814		579,408
Savings accounts	118,293		128,061
Limited access money market accounts	3,654,868		2,568,843
Certificates of deposit, greater than $250	853,659		651,345
Certificates of deposit, less than $250	1,232,983		925,235
Total	$	9,123,234	$	7,363,615

As of December 31, 2022, the scheduled maturities of certificates of deposit were as follows:


Year	Amount
2023	$	1,954,852
2024	102,339
2025	19,391
2026	6,396
2027	3,664

Total	$	2,086,642

The aggregate amount of demand deposit overdrafts that have been reclassified as loans were $395 and $2,128 as of December 31, 2022 and 2021, respectively. Brokered deposits at December 31, 2022 and 2021 totaled approximately $1,307,996 and $182,303, respectively.

LEASES (Tables)

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Summary of Lease Costs and Other Information

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


	For the Year Ended December 31,
	2022		2021
Operating lease cost	$	5,161	$	4,298

Variable lease cost	640		641
Net lease cost	$	5,801	$	4,939

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


	For the Year Ended December 31,
	2022			2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,781		$	4,051
Weighted-average remaining lease term - operating leases, in years	5.4 years			6.0 years
Weighted-average discount rate - operating leases	2.88		%	1.94		%

Summary of Remaining Lease Liabilities

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


	December 31, 2022
Lease payments due:
Within one year	$	4,737
After one but within two years	4,351
After two but within three years	3,549
After three but within four years	2,227
After four but within five years	1,089
After five years	3,235
Total undiscounted cash flows	19,188
Less: Discount on cash flows	(1,861)
Total lease liability	$	17,327

LHI AND ACL - Schedule of Government Guaranteed Loans and Fee Income (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Receivables [Abstract]
PPP fee income	$ 0	$ 7,721,000	$ 12,811,000
Net gain due to the change in fair value	$ 258,000	$ 1,531,000

OFF-BALANCE SHEET LOAN COMMITMENTS

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

OFF-BALANCE SHEET LOAN COMMITMENTS

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

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

The following table sets forth the approximate amounts of these financial instruments as of December 31, 2022 and 2021:


	December 31,
	2022		2021
Commitments to extend credit	$	4,511,671	$	3,809,509
MW commitments	1,088,558		716,370
Standby and commercial letters of credit	98,179		65,881
	$	5,698,408	$	4,591,760

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

MW commitments are unconditionally cancellable and represent the unused capacity on MW facilities the Company has approved. The Company reserves the right to refuse to buy any mortgage loans offered for sale by a customer, for any reason, at the Company’s sole and absolute discretion.

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


	December 31,
	2022		2021
Beginning balance for ACL on unfunded commitments	$	9,266	$	10,747

Provision (benefit) for credit losses on unfunded commitments	820		(1,481)
Ending balance of ACL on unfunded commitments	$	10,086	$	9,266

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Fair Value	$ 158,781	$ 61,446
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	75,000,000	75,000,000
Common stock, shares issued (in shares)	60,668,049	56,010,423
Treasury stock, shares (in shares)	6,638,094	6,638,094

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Marketing Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
Marketing expense	$ 7,179	$ 5,344	$ 3,651

FAIR VALUE DISCLOSURES (Tables)

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of Assets Measured at Fair Value on a Recurring Basis


	December 31, 2022
	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
Financial Assets:
AFS debt securities	$	—	$	1,096,292	$	—	$	1,096,292
Equity securities with a readily determinable fair value	9,792		—		—		9,792
PPP Loans	—		—		1,995		1,995
LHFS (1)	—		19,775		—		19,775
Interest rate swaps designated as hedging instruments	—		26,523		—		26,523
Correspondent interest rate swaps not designated as hedging instruments	—		38,839		—		38,839
Customer interest rate swaps not designated as hedging instruments	—		1,004		—		1,004

Correspondent interest rate caps and collars not designated as hedging instruments	—		1,494		—		1,494
Financial Liabilities:
Interest rate swaps designated as hedging instruments	$	—	$	54,171	$	—	$	54,171
Correspondent interest rate swaps not designated as hedging instruments	—		1,126		—		1,126
Customer interest rate swaps not designated as hedging instruments	—		38,188		—		38,188
Customer interest rate caps and collars not designated as hedging instruments	—		1,494		—		1,494

(1) Represents LHFS elected to be carried at fair value upon origination or acquisition.


	December 31, 2021
	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
Financial Assets:
AFS debt securities	$	—	$	993,058	$	—	$	993,058
Equity securities with a readily determinable fair value	11,038		—		—		11,038
PPP Loans	—		53,369		—		53,369
LHFS (1)	—		9,867		—		9,867
Interest rate swaps designated as hedging instruments	—		7,001		—		7,001
Correspondent interest rate swaps not designated as hedging instruments	—		1,527		—		1,527
Customer interest rate swaps not designated as hedging instruments	—		3,261		—		3,261
Customer interest rate caps and collars not designated as hedging instruments	—		1		—		1
Financial Liabilities:
Interest rate swaps designated as hedging instruments	$	—	$	1,404	$	—	$	1,404
Correspondent interest rate swaps not designated as hedging instruments	—		3,498		—		3,498
Customer interest rate swaps not designated as hedging instruments	—		1,442		—		1,442
Correspondent interest rate caps and collars not designated as hedging instruments	—		1		—		1

(1) Represents LHFS elected to be carried at fair value upon origination or acquisition.

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


	Fair Value
	Measurements Using
	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
As of December 31, 2022
Assets:
Collateral dependent loans with an ACL	$	—	$	—	$	7,969	$	7,969
Servicing assets with a valuation allowance	—		—		10,984		10,984


As of December 31, 2021
Assets:
Collateral dependent loans with an ACL	$	—	$	—	$	10,100	$	10,100
Servicing assets with a valuation allowance	—		—		3,223		3,223

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


			Fair Value
	Carrying Amount		Level 1		Level 2		Level 3
December 31, 2022
Financial assets:
Cash and cash equivalents	$	436,077	$	—	$	436,077	$	—
Held-to-maturity debt securities	186,168		—		158,781		—
Securities purchased under agreements to resell	—		—		—		—
LHFS(1)	866		—		866		—
LHI(2)	9,399,614		—		—		9,163,616
Accrued interest receivable	44,035		—		44,035		—
BOLI	84,496		—		84,496		—
Servicing asset	3,896		—		3,896		—
Equity securities without a readily determinable fair value	10,072		N/A		N/A		N/A
FHLB and FRB stock	101,568		N/A		N/A		N/A
Financial liabilities:
Deposits	$	9,123,234	$	—	$	8,341,419	$	—
Advances from FHLB	1,175,000		—		1,156,852		—
Accrued interest payable	8,795		—		8,795		—
Subordinated debentures and subordinated notes	228,775		—		228,775		—
Securities sold under agreement to repurchase	—		—		—		—

December 31, 2021
Financial assets:
Cash and cash equivalents	$	379,784	$	—	$	379,784	$	—
Held-to-maturity debt securities	59,436		—		61,446		—
Securities purchased under agreements to resell	102,288		—		102,288		—
LHFS(1)	16,140		—		16,140		—
LHI(2)	7,259,233		—		—		7,283,992
Accrued interest receivable	22,008		—		22,008		—
Bank-owned life insurance	83,194		—		83,194		—
Servicing asset	14,482		—		14,482		—
Equity securities without readily determinable fair value	4,355		N/A		N/A		N/A
FHLB and FRB stock	71,892		N/A		N/A		N/A
Financial liabilities:
Deposits	$	7,363,615	$	—	$	7,145,175	$	—
Advances from FHLB	777,562		—		796,480		—
Accrued interest payable	1,507		—		1,507		—
Subordinated debentures and subordinated notes	227,764		—		227,764		—
Securities sold under agreement to repurchase	4,069		—		4,026		—

(1) LHFS primarily represent commercial loans moved to held for sale or mortgage LHFS that are carried at lower of cost or market.

(2) LHI includes MW and is carried at amortized cost.

LHI AND ACL (Tables)

12 Months Ended

Dec. 31, 2022

Receivables [Abstract]

Summary of Loans

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


	December 31,
	2022		2021
LHI, carried at amortized cost:
Real estate:
Construction and land	$	1,787,400	$	1,062,144
Farmland	43,500		55,827
1 - 4 family residential	894,456		542,566
Multi-family residential	322,679		310,241
OOCRE	715,829		665,537
NOOCRE	2,341,379		2,120,309
Commercial	2,940,353		2,006,876
MW	446,227		565,645
Consumer	7,806		11,998
	9,499,629		7,341,143

Deferred loan fees, net	(18,973)		(9,489)
ACL	(91,052)		(77,754)
LHI carried at amortized cost, net	$	9,389,604	$	7,253,900

LHI, carried at fair value:
PPP Loans	$	1,995	$	53,369

Total LHI, net	$	9,391,599	$	7,307,269

Schedule of Government Guaranteed Loans and Fee Income

The following table summarizes the PPP fee income and net gain due to the change in the fair value of PPP loans which are included in government guaranteed loan income, net on the Company's consolidated statements of income and in change in fair value of government guaranteed loans using fair value option on the Company's consolidated statements of cash flows.


	December 31, 2022		December 31, 2021

PPP fee income	$	—	$	7,721
Net gain due to the change in fair value	258		1,531

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

The activity in the ACL related to LHI is as follows:


	December 31, 2022
	Construction and Land		Farmland		Residential		Multifamily		OOCRE		NOOCRE		Commercial		Consumer		Total
Balance at beginning of year	$	7,293	$	187	$	5,982	$	2,664	$	9,215	$	30,548	$	21,632	$	233	$	77,754
Credit loss (benefit) expense non-PCD loans	5,855		(60)		3,757		(57)		4,633		(2,588)		18,933		2,355		32,828
Credit (benefit) loss expense PCD loans	(28)		—		(237)		—		(2,766)		429		(2,000)		(1,276)		(5,878)
Charge-offs	—		—		—		—		(2,646)		(2,410)		(9,731)		(1,285)		(16,072)
Recoveries	—		—		31		—		271		725		1,308		85		2,420
Ending Balance	$	13,120	$	127	$	9,533	$	2,607	$	8,707	$	26,704	$	30,142	$	112	$	91,052


	December 31, 2021
	Construction and Land		Farmland		Residential		Multifamily		OOCRE		NOOCRE		Commercial		Consumer		Total
Balance at beginning of year	$	7,768	$	56	$	8,148	$	6,231	$	9,719	$	35,237	$	37,554	$	371	$	105,084
Credit loss (benefit) expense non-PCD loans	(547)		131		(2,153)		(3,567)		(2,325)		(7,490)		(9,510)		(401)		(25,862)
Credit loss expense PCD loans	72		—		302		—		3,721		10,737		7,622		59		22,513
Charge-offs	—		—		(379)		—		(2,400)		(7,936)		(15,576)		(99)		(26,390)
Recoveries	—		—		64		—		500		—		1,542		303		2,409
Ending Balance	$	7,293	$	187	$	5,982	$	2,664	$	9,215	$	30,548	$	21,632	$	233	$	77,754


	December 31, 2020
	Construction and Land		Farmland		Residential		Multifamily		OOCRE		NOOCRE		Commercial		Consumer		Total
Balance at beginning of year	$	3,821	$	62	$	2,143	$	1,200	$	1,991	$	8,126	$	12,369	$	122	$	29,834
Impact of adopting ASC 326 non-PCD loans	(707)		4		3,716		628		3,406		5,138		7,025		217		19,427
Impact of adopting ASC 326 PCD loans	645		—		908		—		7,682		2,037		8,335		103		19,710
Credit loss (benefit) expense non-PCD loans	4,554		(10)		1,720		4,403		4,364		15,397		24,413		(178)		54,663
Credit loss expense PCD loans	(545)		—		(378)		—		(5,303)		7,404		817		(18)		1,977
Charge-offs	—		—		(18)		—		(2,421)		(2,865)		(15,507)		(162)		(20,973)
Recoveries	—		—		57		—		—		—		102		287		446
Ending Balance	$	7,768	$	56	$	8,148	$	6,231	$	9,719	$	35,237	$	37,554	$	371	$	105,084

Schedule of Amortized Cost Basis of Collateral Dependent Loans

The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans as of December 31, 2022:


	December 31, 2022					December 31, 2021
		Real Property(1)		ACL Allocation			Real Property(1)		ACL Allocation





OOCRE		$	1,193	$	129		$	—	$	—
NOOCRE		20,896		2,138			17,908		7,808
Commercial		1,240		396			1,702		—

Consumer		15		—			1,063		—
Total		$	23,344	$	2,663		$	20,673	$	7,808

(1) Loans reported exclude PCD loans that transitioned upon adoption of ASC 326 and accounted for on a pooled basis. Refer to Note 1 for further discussion.

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

Nonaccrual loans, aggregated by class of loans, as of December 31, 2022 and 2021, were as follows:


	December 31, 2022				December 31, 2021
	Nonaccrual		Nonaccrual With No ACL			Nonaccrual		Nonaccrual With No ACL
Real estate:


1 - 4 family residential	$	862	$	862		$	990	$	990

OOCRE	9,737		8,545			14,236		13,824
NOOCRE	21,377		13,178			17,978		191
Commercial	11,397		2,521			15,267		4,207

Consumer	169		169			1,216		1,216
Total	$	43,542	$	25,275		$	49,687	$	20,428

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

An age analysis of past due loans, aggregated by class of loans, as of December 31, 2022 and 2021 is as follows:


	December 31, 2022
	30 to 59 Days		60 to 89 Days		90 Days or Greater		Total Past Due(1)		Total Current		PCD		Total Loans		Total 90 Days Past Due and Still Accruing(2)
Real estate:
Construction and land	$	1,121	$	2,111	$	—	$	3,232	$	1,782,624	$	1,544	$	1,787,400	$	—
Farmland	—		—		—		—		43,500		—		43,500		—
1 - 4 family residential	4,319		129		499		4,947		888,329		1,180		894,456		123
Multi-family residential	1,000		—		—		1,000		321,679		—		322,679		—
OOCRE	3,342		1,186		1,193		5,721		690,291		19,817		715,829		—
NOOCRE	5,156		—		20,896		26,052		2,302,579		12,748		2,341,379		—
Commercial	3,088		2,188		1,675		6,951		2,929,701		3,701		2,940,353		—
MW	—		—		—		—		446,227		—		446,227		—
Consumer	352		—		45		397		7,386		23		7,806		2
	$	18,378	$	5,614	$	24,308	$	48,300	$	9,412,316	$	39,013	$	9,499,629	$	125

(1) Total past due loans includes $13,178 of pooled PCD loans as of December 31, 2022.

(2) Loans 90 days past due and still accruing excludes $2,004 of PCD loans and $669 of PPP loans as of December 31, 2022.


	December 31, 2021
	30 to 59 Days		60 to 89 Days		90 Days or Greater		Total Past Due		Total Current		PCD		Total Loans		Total 90 Days Past Due and Still Accruing (1)
Real estate:
Construction and land	$	—	$	—	$	—	$	—	$	1,059,796	$	2,348	$	1,062,144	$	—
Farmland	—		—		—		—		55,827		—		55,827		—
1 - 4 family residential	2,073		—		1,008		3,081		538,307		1,178		542,566		24
Multi-family residential	—		—		—		—		310,241		—		310,241		—
OOCRE	4,538		965		11,622		17,125		620,848		27,564		665,537		—
NOOCRE	936		—		192		1,128		2,100,981		18,200		2,120,309		—
Commercial	1,525		4,395		3,708		9,628		1,988,622		8,626		2,006,876		191
MW	—		—		—		—		565,645		—		565,645		—
Consumer	135		105		1,082		1,322		10,499		177		11,998		20
	$	9,207	$	5,465	$	17,612	$	32,284	$	7,250,766	$	58,093	$	7,341,143	$	235

(1) Loans 90 days past due and still accruing excludes $9,345 of pooled PCD loans and $206 of PPP loans as of December 31, 2021.

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

The terms of certain loans modified as TDRs during the year ended December 31, 2022 and December 31, 2021 are summarized in the following tables:


	During the year ended December 31, 2022
	Adjusted Payment Structure		Payment Deferrals		Total Modifications		Number of Loans






Commercial	$	—	$	946	$	946	1

Consumer	29		—		29		2
Total	$	29	$	946	$	975	3

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


	Term Loans Amortized Cost Basis by Origination Year1
	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
As of December 31,
Construction and land:
Pass	$	347,855	$	709,208	$	378,229	$	69,241	$	30,673	$	14,025	$	215,263	$	140	$	1,764,634
Special mention	—		18,662		2,560		—		—		—		—		—		21,222

PCD	—		—		—		—		—		1,544		—		—		1,544
Total construction and land	$	347,855	$	727,870	$	380,789	$	69,241	$	30,673	$	15,569	$	215,263	$	140	$	1,787,400

Farmland:
Pass	$	2,546	$	16,242	$	18,530	$	21	$	—	$	5,069	$	1,092	$	—	$	43,500



Total farmland	$	2,546	$	16,242	$	18,530	$	21	$	—	$	5,069	$	1,092	$	—	$	43,500

1 - 4 family residential:


Pass	$	135,006	$	188,635	$	87,861	$	43,293	$	41,960	$	257,768	$	86,900	$	726	$	842,149
Special mention	—		—		—		—		—		278		26,068		—		26,346
Substandard	—		184		—		—				1,028		23,569		—		24,781
PCD	—		—		—		—		—		1,180		—		—		1,180
Total 1-4 family residential	$	135,006	$	188,819	$	87,861	$	43,293	$	41,960	$	260,254	$	136,537	$	726	$	894,456

Multi-family residential:
Pass	$	72,044	$	80,793	$	110,426	$	8,402	$	32,822	$	2,494	$	—	$	—	$	306,981

Substandard	—		—		—		1,954		13,744		—		—		—		15,698

Total multi-family residential	$	72,044	$	80,793	$	110,426	$	10,356	$	46,566	$	2,494	$	—	$	—	$	322,679

OOCRE:
Pass	$	191,044	$	106,698	$	84,230	$	43,965	$	49,461	$	167,968	$	5,225	$	—	$	648,591
Special mention	—		2,321		1,409		1,964		—		3,447		—		45		9,186
Substandard	—		—		—		—		23,231		15,004		—		—		38,235
PCD	—		—		—		—		—		19,817		—		—		19,817
Total OOCRE	$	191,044	$	109,019	$	85,639	$	45,929	$	72,692	$	206,236	$	5,225	$	45	$	715,829

NOOCRE:
Pass	$	752,476	$	531,735	$	215,076	$	149,246	$	196,424	$	305,434	$	16,642	$	465	$	2,167,498
Special mention	—		—		22,774		19,464		12,274		51,451		—		—		105,963
Substandard	—		—		—		1,310		7,659		46,201		—		—		55,170
PCD	—		—		—		—		12,697		51		—		—		12,748
Total NOOCRE	$	752,476	$	531,735	$	237,850	$	170,020	$	229,054	$	403,137	$	16,642	$	465	$	2,341,379

Commercial:
Pass	$	473,084	$	132,396	$	88,548	$	83,996	$	40,030	$	31,269	$	1,906,074	$	553	$	2,755,950
Special mention	—		666		—		4,543		7,385		270		114,447		—		127,311
Substandard	17,894		4,058		5,189		4,195		10,954		4,732		6,292		77		53,391
PCD	—		—		—		—		273		3,428		—		—		3,701
Total commercial	$	490,978	$	137,120	$	93,737	$	92,734	$	58,642	$	39,699	$	2,026,813	$	630	$	2,940,353

MW:
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	444,393	$	—	$	444,393
Special mention	—		—		—		—		—		—		1,626		—		1,626
Substandard	—		—		—		—		46		162		—		—		208

Total MW	$	—	$	—	$	—	$	—	$	46	$	162	$	446,019	$	—	$	446,227

Consumer:
Pass	$	1,965	$	452	$	872	$	216	$	135	$	2,298	$	1,618	$	—	$	7,556
Special mention	—		—		—		—		—		58		—		—		58
Substandard	—		—		—		—		—		169		—		—		169
PCD	—		—		—		—		—		23		—		—		23
Total consumer	$	1,965	$	452	$	872	$	216	$	135	$	2,548	$	1,618	$	—	$	7,806

Total Pass	$	1,976,020	$	1,766,159	$	983,772	$	398,380	$	391,505	$	786,325	$	2,677,207	$	1,884	$	8,981,252
Total Special Mention	—		21,649		26,743		25,971		19,659		55,504		142,141		45		291,712
Total Substandard	17,894		4,242		5,189		7,459		55,634		67,296		29,861		77		187,652
Total PCD	—		—		—		—		12,970		26,043		—		—		39,013


Total						$	1,993,914					$	1,792,050					$	1,015,704					$	431,810					$	479,768					$	935,168					$	2,849,209					$	2,006					$	9,499,629

1 Term loans amortized cost basis by origination year excludes $18,973 of deferred loan fees, net.


	Term Loans Amortized Cost Basis by Origination Year1
	2021			2020			2019			2018		2017		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
As of December 31,
Construction and land:
Pass	$	389,420		$	453,262		$	116,855		$	57,637	$	5,741	$	29,182	$	4,631	$	1,163	$	1,057,891
Special mention	—			1,593			—			312		—		—		—		—		1,905

PCD	—			—			—			—		—		2,348		—		—		2,348
Total construction and land	$	389,420		$	454,855		$	116,855		$	57,949	$	5,741	$	31,530	$	4,631	$	1,163	$	1,062,144

Farmland:
Pass	$	16,849		$	28,655		$	27		$	3,367	$	2,957	$	2,643	$	1,329	$	—	$	55,827



Total farmland	$	16,849		$	28,655		$	27		$	3,367	$	2,957	$	2,643	$	1,329	$	—	$	55,827

1 - 4 family residential:
Pass	$	191,333		$	101,377		$	54,826		$	59,861	$	27,743	$	85,661	$	12,659	$	6,025	$	539,485
Special mention	—			—			—			—		—		352		—		—		352
Substandard	—			—			—			—		81		903		567		—		1,551
PCD	—			—			—			—		—		1,178		—		—		1,178
Total 1 - 4 family residential	$	191,333		$	101,377		$	54,826		$	59,861	$	27,824	$	88,094	$	13,226	$	6,025	$	542,566

Multi-family residential:
Pass	$	67,979		$	59,239		$	54,321		$	68,531	$	11,815	$	27,020	$	49	$	—	$	288,954
Special mention	—			—			—			21,287		—		—		—		—		21,287


Total multi-family residential	$	67,979		$	59,239		$	54,321		$	89,818	$	11,815	$	27,020	$	49	$	—	$	310,241

OOCRE:
Pass	$	114,413		$	111,516		$	56,964		$	73,112	$	54,921	$	174,500	$	2,986	$	2,965	$	591,377
Special mention	2,420			—			1,052			—		—		6,232		—		—		9,704
Substandard	—			412			—			25,440		781		10,259		—		—		36,892
PCD	—			1,377			—			—		6,567		19,620		—		—		27,564
Total OOCRE	$	116,833		$	113,305		$	58,016		$	98,552	$	62,269	$	210,611	$	2,986	$	2,965	$	665,537

NOOCRE:
Pass	$	628,140		$	298,091		$	254,566		$	319,359	$	56,710	$	336,713	$	5,861	$	23,015	$	1,922,455
Special mention	—			613			1,685			29,469		16,354		48,952		—		489		97,562
Substandard	—		0	48		0	1,775		0	26,209		1,581		52,479		—		—		82,092
PCD	—			—			—			13,620		—		4,580		—		—		18,200
Total NOOCRE	$	628,140		$	298,752		$	258,026		$	388,657	$	74,645	$	442,724	$	5,861	$	23,504	$	2,120,309

Commercial:
Pass	$	430,213		$	187,370		$	124,798		$	65,186	$	40,254	$	52,491	$	968,229	$	19,130	$	1,887,671
Special mention	7,958			2,341			149			15,136		1,069		3,368		3,482		2,589		36,092
Substandard	15,662			5,843			6,286			14,908		4,167		2,779		20,500		4,342		74,487
PCD	—			—			—			315		1,785		6,526		—		—		8,626
Total commercial	$	453,833		$	195,554		$	131,233		$	95,545	$	47,275	$	65,164	$	992,211	$	26,061	$	2,006,876


MW:
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	564,850	$	250	$	565,100

Substandard	—		—		—		—		—		—		545		—		545

Total MW	$	—	$	—	$	—	$	—	$	—	$	—	$	565,395	$	250	$	565,645

Consumer:
Pass	$	3,362	$	1,566	$	512	$	408	$	2,777	$	784	$	1,006	$	25	$	10,440
Special mention	—		—		—		—		65		14		—		—		79
Substandard	—		—		22		—		177		39		1,064		—		1,302
PCD	—		—		—		—		24		153		—		—		177
Total consumer	$	3,362	$	1,566	$	534	$	408	$	3,043	$	990	$	2,070	$	25	$	11,998

Total Pass	$	1,841,709	$	1,241,076	$	662,869	$	647,461	$	202,918	$	708,994	$	1,561,600	$	52,573	$	6,919,200
Total Special Mention	10,378		4,547		2,886		66,204		17,488		58,918		3,482		3,078		166,981
Total Substandard	15,662		6,303		8,083		66,557		6,787		66,459		22,676		4,342		196,869
Total PCD	—		1,377		—		13,935		8,376		34,405		—		—		58,093
Total	$	1,867,749	$	1,253,303	$	673,838	$	794,157	$	235,569	$	868,776	$	1,587,758	$	59,993	$	7,341,143

1 Term loans amortized cost basis by origination year excludes $9,489 of deferred loan fees, net.

Schedule of Summary of Changes in Servicing Assets

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


	Year Ended December 31,
	2022		2021
Balance at beginning of year	$	17,705	$	3,363
Servicing assets acquired through acquisition	—		13,913
Increase from loan sales	2,670		1,330
Servicing asset impairment, net of recoveries	(1,823)		(71)
Amortization charged as a reduction to income	(3,672)		(830)

Balance at year-end	$	14,880	$	17,705

Schedule of Loans Held-for-Sale, Principal Sold


	Year Ended December 31,
	2022		2021		2020
SBA LHFI principal sold	$	9,491	$	40,001	$	41,488
Gain on sale of SBA LHFI	848		4,911		3,379
USDA LHFI principal sold	72,670		—		—
Gain on sale of USDA LHFI	10,731		—		—

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Balance Sheet

The notional amounts and estimated fair values as of December 31, 2022 and December 31, 2021 were as shown in the table below.


	December 31, 2022						December 31, 2021
			Estimated Fair Value						Estimated Fair Value
	Notional Amount		Asset Derivative		Liability Derivative		Notional Amount		Asset Derivative		Liability Derivative
Derivatives designated as hedging instruments (cash flow hedges):
Interest rate swap on money market deposit account payments	$	250,000	$	21,234	$	—	$	250,000	$	4,541	$	—
Interest rate swaps on customer loan interest payments	375,000		—		49,211		375,000		2,460		1,404
Interest rate collars on customer loan interest payments	450,000		3,267		4,960		—		—		—
Interest rate floor on customer loan interest payments	100,000		2,022		—		—		—		—
Total derivatives designated as hedging instruments	$	1,175,000	$	26,523	$	54,171	$	625,000	$	7,001	$	1,404

Derivatives not designated as hedging instruments:
Financial institution counterparty:
Interest rate swaps	$	805,311	$	38,839	$	1,126	$	379,787	$	1,527	$	3,498
Interest rate caps and collars	68,370		1,494		—		41,916		—		1
Commercial customer counterparty:
Interest rate swaps	805,311		1,004		38,188		379,787		3,261		1,442
Interest rate caps and collars	68,370		—		1,494		41,916		1		—
Total derivatives not designated as hedging instruments	$	1,747,362	$	41,337	$	40,808	$	843,406	$	4,789	$	4,941
Offsetting derivative assets/liabilities			(30,982)		(30,982)				(2,609)		(2,609)
Total derivatives	$	2,922,362	$	36,878	$	63,997	$	1,468,406	$	9,181	$	3,736

Derivative Instruments, Gain (Loss)

Pre-tax gain (loss) included in the Company's consolidated statements of income and related to derivative instruments for the years ended December 31, 2022 and 2021 was as follows:


	For the Year Ended December 31, 2022						For the Year Ended December 31, 2021
	Net (loss) gain recognized in other comprehensive income on derivative		Gain (loss) reclassified from accumulated other comprehensive income into income		Location of gain (loss) reclassified from accumulated other comprehensive income into income		Net gain (loss) recognized in other comprehensive income on derivative		(Loss) gain reclassified from accumulated other comprehensive income into income		Location of (loss) gain reclassified from accumulated other comprehensive income into income
Derivatives designated as hedging instruments (cash flow hedges):
Interest rate swap on borrowing advances	$	(3,569)	$	3,569	Interest Expense		$	26,357	$	—	Interest Expense
Interest rate swap on money market deposit account payments	16,693		3,208		Interest Expense		6,995		(803)		Interest Expense
Commercial loan interest rate floor	—		—		Interest Income		—		866		Interest Income
Interest rate swaps, collars and floor on customer loan interest payments	(54,623)		(1,757)		Interest Income		(14)		3,714
Total	$	(41,499)	$	5,020			$	33,338	$	3,777


					Net Gain recognized in other noninterest income						Loss recognized in other noninterest income
Derivatives not designated as hedging instruments:
Interest rate swaps, caps and collars					$	7,217					$	1,913

Schedule of Derivative Instruments Outstanding

The following is a summary of the interest rate swaps outstanding as of December 31, 2022 and December 31, 2021.


	December 31, 2022
	Notional Amount		Fixed Rate	Floating Rate	Maturity	Fair Value
Non-hedging derivative instruments:
Customer interest rate derivative:
Interest rate swaps - receive fixed/pay floating	$	805,311	2.410% - 8.470%	LIBOR 1 month + 2.750% - 5.000% SOFR CME 1 month + —%- 3.750% SOFR - NYFD 30 day average + 2.500% - 2.964%	Wtd. Avg. 5.1 years	$	(37,183)
Interest rate caps and collars	$	68,370	3.500%	LIBOR 1 month + 0.00%	Wtd. Avg. 1.8 years	$	(1,494)

Correspondent interest rate derivative:
Interest rate swaps - pay fixed/receive floating	$	805,311	2.41% - 8.470%	LIBOR 1 month + 2.750% - 5.000% SOFR CME 1 month + —%- 3.750% SOFR - NYFD 30 day average + 2.500% - 2.964%	Wtd. Avg. 5.1 years	$	37,713
Interest rate caps and collars	$	68,370	3.500%	LIBOR 1 month + 0.00%	Wtd. Avg. 1.8 years	$	1,494


	December 31, 2021
	Notional Amount		Fixed Rate	Floating Rate	Maturity	Fair Value
Non-hedging derivative instruments:
Customer interest rate derivative:
Interest rate swaps - receive fixed/pay floating	$	379,787	2.97% - 8.47%	LIBOR 1 month + 2.20% - 5.00% SOFR CME 1 month + 2.48% - 2.90% SOFR - NYFD 30 day average + 2.50% - 2.964%	Wtd. Avg. 4.8 years	$	1,820
Interest rate caps and collars	$	41,916	3.00% / 5.00%	LIBOR 1 month + 0.00% - 2.50%	Wtd. Avg. 0.6 years	$	1

Correspondent interest rate derivative:
Interest rate swaps - pay fixed/receive floating	$	379,787	2.97% - 8.47%	LIBOR 1 month + 2.20% - 5.00% SOFR CME 1 month + 2.48% - 2.90% SOFR - NYFD 30 day average + 2.50% - 2.964%	Wtd. Avg. 4.8 years	$	(1,972)
Interest rate caps and collars	$	41,916	2.50% / 3.00%	LIBOR 1 month + 0.00%	Wtd. Avg. 0.6 years	$	(1)

- Definition

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

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5624163-113959

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5580258-113959

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI https://asc.fasb.org/extlink&oid=125515794&loc=d3e41620-113959

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5579245-113959

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI https://asc.fasb.org/extlink&oid=125515794&loc=d3e41638-113959

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 8
-URI https://asc.fasb.org/extlink&oid=125515794&loc=d3e41678-113959

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI https://asc.fasb.org/extlink&oid=125515794&loc=d3e41641-113959

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5624171-113959

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5579240-113959

+ Details

BUSINESS COMBINATIONS - Narrative (Details) - USD ($) $ in Thousands				12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021	Nov. 01, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Goodwill		$ 403,771		$ 404,452	$ 403,771	$ 370,840
Merger and acquisition ("M&A") expense				1,379	826	$ 0
North Avenue Capital, LLC
Business Acquisition [Line Items]
Goodwill	$ 33,612	32,931			32,931
Cash paid for acquisition	$ 57,500	$ 57,500	$ 57,500
Adjustment period (in years)			3 years
Contingent consideration liability			$ 5,000
Merger and acquisition ("M&A") expense				$ 0	$ 826

- Definition

+ References + Details