0001501570-23-000243 | 10-Q | XBRL Viewer

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Stock-Based Awards - Veritex (Green) 2014 Plan - RSUs and PSUs (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Incremental PSUs granted upon performance condition met (in shares)		10,566
Weighted Average Grant Date Fair Value
Incremental PSUs granted upon performance condition met (in dollars per share)		$ 19.69
Veritex (Green) 2014 Plan \| RSUs
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Outstanding at the beginning of the period (in shares)	86,233	122,784
Granted (in shares)		4,231
Vested into shares (in shares)	(19,282)	(33,531)
Forfeited (in shares)	(2,232)	(7,601)
Outstanding at the end of the period (in shares)	64,719	85,883
Weighted Average Grant Date Fair Value
Outstanding at the beginning of the period (in dollars per share)	$ 21.09	$ 21.13
Granted (in dollars per share)		40.38
Vested into shares (in dollars per share)	29.66	21.80
Forfeited (in dollars per share)	29.13	29.13
Outstanding at the end of the period (in dollars per share)	$ 18.26	$ 21.11
Veritex (Green) 2014 Plan \| PSUs
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Outstanding at the beginning of the period (in shares)	19,173	35,899
Granted (in shares)		4,411
Vested into shares (in shares)	(8,531)	(31,703)
Outstanding at the end of the period (in shares)	10,642	19,173
Weighted Average Grant Date Fair Value
Outstanding at the beginning of the period (in dollars per share)	$ 30.74	$ 22.26
Granted (in dollars per share)		40.38
Vested into shares (in dollars per share)	25.94	19.69
Outstanding at the end of the period (in dollars per share)	$ 31.93	$ 29.26
Veritex (Green) 2014 Plan \| Restricted Stock Units and Performance Stock Based Units
Weighted Average Grant Date Fair Value
Unrecognized compensation expense	$ 16,869	$ 14,327	$ 17,160
Requisite service period to recognize compensation cost (in years)	1 year 9 months 29 days

Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Balance Sheet

The notional amounts and estimated fair values as of September 30, 2023 and December 31, 2022 are as shown in the table below.


	September 30, 2023						December 31, 2022
			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	$	16,877	$	—	$	250,000	$	21,234	$	—
Interest rate swaps on customer loan interest payments	375,000		—		55,251		375,000		—		49,211
Interest rate collars on customer loan interest payments	450,000		1,237		6,826		450,000		3,267		4,960
Interest rate floor on customer loan interest payments	200,000		2,779		—		100,000		2,022		—
Total derivatives designated as hedging instruments	$	1,275,000	$	20,893	$	62,077	$	1,175,000	$	26,523	$	54,171

Derivatives not designated as hedging instruments:
Financial institution counterparty:
Interest rate swaps	$	877,614	$	51,973	$	75	$	805,311	$	38,839	$	1,126
Interest rate caps and corridors	264,770		2,543		—		68,370		1,494		—
Commercial customer counterparty:
Interest rate swaps	877,614		54		51,418		805,311		1,004		38,188
Interest rate caps and corridors	264,770		—		2,543		68,370		—		1,494
Total derivatives not designated as hedging instruments	$	2,284,768	$	54,570	$	54,036	$	1,747,362	$	41,337	$	40,808
Offsetting derivative assets/liabilities	—		(41,628)		(41,628)		—		(30,982)		(30,982)
Total derivatives	$	3,559,768	$	33,835	$	74,485	$	2,922,362	$	36,878	$	63,997

Derivative Instruments, (Loss) Gain

Pre-tax (loss) gain included in the consolidated statements of income and related to derivative instruments for the three and nine months ended September 30, 2023 and 2022 were as follows.


	For the Three Months Ended September 30, 2023						For the Three Months Ended September 30, 2022
	(Loss) recognized in other comprehensive income on derivative		Gain (loss) reclassified from accumulated other comprehensive income into income		Location of (loss) gain reclassified from accumulated other comprehensive income into income		(Loss) gain recognized in other comprehensive income on derivative		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	$	(1,105)	$	1,105	Interest Expense		$	(1,106)	$	1,106	Interest Expense
Interest rate swap on money market deposit account payments	(1,751)		3,035		Interest Expense		5,855		1,124		Interest Expense
Interest rate swaps, collars and floors on customer loan interest payments	(9,060)		(5,260)		Interest Income		(23,165)		(873)		Interest Income
Total	$	(11,916)	$	(1,120)			$	(18,416)	$	1,357

					Net gain recognized in other noninterest income						Net gain recognized in other noninterest income
Derivatives not designated as hedging instruments:
Interest rate swaps, caps and collars					$	180					$	3,039


	For the Nine Months Ended September 30, 2023						For the Nine Months Ended September 30, 2022
	(Loss) gain recognized in other comprehensive income on derivative		Gain (loss) reclassified from accumulated other comprehensive income into income		Location of (loss) gain reclassified from accumulated other comprehensive income into income		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	$	(3,281)	$	3,281	Interest Expense		$	(2,464)	$	2,464	Interest Expense
Interest rate swap on money market deposit account payments	(4,358)		8,469		Interest Expense		17,567		1,182		Interest Expense
Interest rate swaps, collars and floors on customer loan interest payments	(12,233)		(13,773)		Interest Income		(58,473)		704		Interest Income
Total	$	(19,872)	$	(2,023)			$	(43,370)	$	4,350

					Net gain recognized in other noninterest income						Net gain recognized in other noninterest income
Derivatives not designated as hedging instruments:
Interest rate swaps, caps and collars					$	1,375					$	5,165

Schedule of Derivative Instruments Outstanding

The following is a summary of the interest rate swaps, caps and collars outstanding as of September 30, 2023 and December 31, 2022.


	September 30, 2023
	Notional Amount		Fixed Rate	Floating Rate	Maturity	Fair Value
Non-hedging derivative instruments:
Customer interest rate derivative:
Interest rate swaps - receive fixed/pay floating	$	877,614	2.41% - 7.37%	LIBOR 1 month + 3.0% SOFR CME 1 month + 0.0% - 3.8% SOFR-NYFD 30 day avg + 2.5% - 3.0%	Wtd. Avg. 4.3 years	$	(51,622)
Interest rate caps and corridors	$	264,770	3.50% - 7.50%	SOFR CME 1 month + 0.0% - 2.5% SOFR + 0.0%	Wtd. Avg. 1.0 years	$	(2,543)

Correspondent interest rate derivative:
Interest rate swaps - pay fixed/receive floating	$	877,614	2.41% - 7.37%	LIBOR 1 month + 3.0% SOFR CME 1 month + 0.0% - 3.8% SOFR-NYFD 30 day avg + 2.5% - 3.0%	Wtd. Avg. 4.3 years	$	51,898
Interest rate caps and corridors	$	264,770	3.50% - 7.50%	SOFR CME 1 month + 0.0% - 2.5% SOFR + 0.0%	Wtd. Avg. 1.0 years	$	2,543

	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	2.41% - 8.47%	LIBOR 1 month + 2.8% - 5.0% SOFR CME 1 month + 0.0% - 3.8% SOFR-NYFD 30 day avg + 2.5% - 3.0%	Wtd. Avg. 5.1 years	$	(37,183)
Interest rate caps and corridors	$	68,370	3.50%	LIBOR 1 month + 0.0%	Wtd. Avg. 1.8 years	$	(1,494)

Correspondent interest rate derivative:
Interest rate swaps - pay fixed/receive floating	$	805,311	2.41% - 8.47%	LIBOR 1 month + 2.8% - 5.0% SOFR CME 1 month + 0.0% - 3.8% SOFR-NYFD 30 day avg + 2.5% - 3.0%	Wtd. Avg. 5.1 years	$	37,713
Interest rate caps and corridors	$	68,370	3.50%	LIBOR 1 month + 0.0%	Wtd. Avg. 1.8 years	$	1,494

- 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 + Details

Securities

9 Months Ended

Sep. 30, 2023

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 $9,457 and $9,792 at September 30, 2023 and December 31, 2022, respectively. The Company did not realize a loss on equity securities with a readily determinable fair value during the three and nine months ended September 30, 2023 or 2022, respectively. The gross unrealized loss 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:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Unrealized loss recognized on equity securities with a readily determinable fair value	$	(304)	$	(429)	$	(335)	$	(1,299)

Equity Securities Without a Readily Determinable Fair Value

The Company held equity securities without a readily determinable fair values and measured at cost of $11,256 and $10,072 as of September 30, 2023 and December 31, 2022, respectively.

Securities Purchased Under Agreements to Resell

As of September 30, 2023, we held no securities purchased under agreements to resell and we recognized no interest income during the three and nine months ended September 30, 2023 on securities purchased under agreements to resell. As of September 30, 2022, we held no securities purchased under agreements to resell and we recognized interest income of $801 and $1,386 during the three and nine months ended September 30, 2022, respectively, on securities purchased under agreements to resell. 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:


	September 30, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		ACL		Fair Value
AFS

Corporate bonds	$	244,487	$	1,237	$	34,910	$	—	$	210,814
Municipal securities	46,725		—		6,080		—		40,645
Mortgage-backed securities	122,595		13		20,715		—		101,893
Collateralized mortgage obligations	489,858		—		64,662		—		425,196
Asset-backed securities	34,456		319		2,800		—		31,975
Collateralized loan obligations	69,750		—		1,190		—		68,560
	$	1,007,871	$	1,569	$	130,357	$	—	$	879,083

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		ACL		Fair Value
HTM
Mortgage-backed securities	$	34,344	$	—	$	8,103	$	—	$	26,241
Collateralized mortgage obligations	34,717		—		6,208		—		28,509
Municipal securities	112,485		—		19,399		—		93,086
	$	181,546	$	—	$	33,710	$	—	$	147,836


	December 31, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized 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

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized 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

Mortgage-backed securities (“MBS”) are commercial MBS, secured by commercial properties, and residential MBS, generally secured by single-family residential properties. All mortgage-backed securities included in the table above were issued by U.S. government agencies or corporations.

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 retained in AOCI for securities transferred from AFS to HTM was $3,290 and $3,790 at September 30, 2023 and December 31, 2022, respectively.

The following tables disclose the Company’s AFS debt securities in an unrealized loss position, aggregated by investment category and length of time that individual debt securities have been in a continuous loss position:


	September 30, 2023
	Less Than 12 Months				12 Months or More				Totals
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
AFS

Corporate bonds	$	24,419	$	6,580	$	157,421	$	28,330	$	181,840	$	34,910
Municipal securities	20,667		752		19,978		5,328		40,645		6,080
Mortgage-backed securities	154		—		101,233		20,715		101,387		20,715
Collateralized mortgage obligations	—		—		425,196		64,662		425,196		64,662
Asset-backed securities	7,724		1,877		8,983		923		16,707		2,800
Collateralized loan obligations	—		—		68,560		1,190		68,560		1,190
	$	52,964	$	9,209	$	781,371	$	121,148	$	834,335	$	130,357

HTM
Mortgage-backed securities	$	—	$	—	$	26,241	$	8,103	$	26,241	$	8,103
Collateralized mortgage obligations	—		—		28,509		6,208		28,509		6,208
Municipal securities	17,947		1,262		75,139		18,137		93,086		19,399
	$	17,947	$	1,262	$	129,889	$	32,448	$	147,836	$	33,710


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

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 148 and 175 at September 30, 2023 and December 31, 2022, respectively. Management does not have the intent to sell any of these debt securities and believes that it is more likely than not that the Company will not have to sell any such debt securities before a recovery of cost. The fair value is expected to recover as the debt securities approach their maturity date or repricing date or if market yields for such investments decline. Accordingly, as of September 30, 2023, 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 following table presents the activity in the allowance for credit losses for AFS debt securities:


	Three Months ended September 30,				Nine Months ended September 30,
	2023		2022		2023		2022
Allowance for credit losses:
Beginning balance	$	885	$	—	$	—	$	—
Credit loss recovery	(885)		—		—		—
Allowance for credit losses ending balance	$	—	$	—	$	—	$	—

The amortized costs and estimated fair values of AFS and HTM 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, asset-backed securities, and collateralized loan obligations 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, asset-backed securities, and collateralized loan obligations 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.


	September 30, 2023
	AFS				HTM
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	2,026	$	1,913	$	—	$	—
Due from one year to five years	46,477		47,002		4,466		4,407
Due from five years to ten years	188,542		157,908		12,839		12,115
Due after ten years	54,167		44,636		95,180		76,564
	291,212		251,459		112,485		93,086
Mortgage-backed securities and collateralized mortgage obligations	612,453		527,089		69,061		54,750
Asset-backed securities	34,456		31,975		—		—
Collateralized loan obligations	69,750		68,560		—		—
	$	1,007,871	$	879,083	$	181,546	$	147,836


	December 31, 2022
	AFS				HTM
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	—	$	—	$	—	$	—
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

Proceeds from sales of debt securities AFS and gross gains and losses for the nine months ended September 30, 2023 and 2022 were as follows:


	Nine Months Ended September 30,
	2023		2022
Proceeds from sales (1)	$	109,793	$	—

Gross realized losses (1)	5,321		—

(1) There were no proceeds from sales or gross realized losses for the three months ended September 30, 2023 and 2022.

As of September 30, 2023 and December 31, 2022, 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 stockholders' equity. There was a blanket floating lien on all debt securities held by the Company to secure FHLB advances as of September 30, 2023 and December 31, 2022.

Stock-Based Awards - 2010 Plan Options (Details)	9 Months Ended		12 Months Ended
Stock-Based Awards - 2010 Plan Options (Details)	Sep. 30, 2023 USD ($) $ / shares shares	Sep. 30, 2022 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares
Shares Underlying Options
Options exercisable at end of period (in shares) \| shares	0	1,000
Weighted Exercise Price
Options exercisable at end of period (in dollars per share) \| $ / shares	$ 0	$ 10.43
Weighted Average Contractual Term
Exercisable (in years)		1 year 25 days
Aggregate Intrinsic Value
Exercisable \| $	$ 0
2010 Stock Option and Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense \| $	$ 0	$ 0
Shares Underlying Options
Outstanding at the end of period (in shares) \| shares	0
Weighted Exercise Price
Outstanding at the end of period (in dollars per share) \| $ / shares	$ 0
Aggregate Intrinsic Value
Outstanding \| $	$ 0
Non-Performance Based Stock Options
Shares Underlying Options
Outstanding at the end of period (in shares) \| shares		1,000
Weighted Exercise Price
Outstanding at the end of period (in dollars per share) \| $ / shares		$ 10.43
Weighted Average Contractual Term
Outstanding (in years)		1 year 25 days
Non-Performance Based Stock Options \| 2010 Stock Option and Equity Incentive Plan
Shares Underlying Options
Outstanding at beginning of period (in shares) \| shares	1,000	1,000	1,000
Exercised (in shares) \| shares	(1,000)
Outstanding at the end of period (in shares) \| shares			1,000
Weighted Exercise Price
Outstanding at beginning of period (in dollars per share) \| $ / shares	$ 10.43	$ 10.43	$ 10.43
Exercised (in dollars per share) \| $ / shares	$ 10.43
Outstanding at the end of period (in dollars per share) \| $ / shares			$ 10.43
Weighted Average Contractual Term
Outstanding (in years)			1 year 25 days
Aggregate Intrinsic Value
Outstanding \| $			$ 147,000
Unrecognized compensation expense \| $	$ 0	$ 0	$ 0
Non-performance-based stock options exercised \| $	$ 16,000	$ 0

Cover Page - shares	9 Months Ended
Cover Page - shares	Sep. 30, 2023	Oct. 29, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
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 Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		54,322,428
Entity Central Index Key	0001501570
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3

Securities - Proceeds From Sale of Debt Securities (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Investments, Debt and Equity Securities [Abstract]
Proceeds from sales	$ 0	$ 0	$ 109,793,000	$ 0
Gross realized losses	$ 0	$ 0	$ 5,321,000	$ 0

Off-Balance Sheet Loan Commitments - Allowance for Unfunded Commitments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Allowance For Unfunded Commitments [Roll Forward]
Beginning balance for ACL on unfunded commitments	$ 10,454	$ 9,759	$ 10,086	$ 9,266
(Benefit) provision for credit losses on unfunded commitments	(909)	850	(541)	1,343
Ending balance of ACL on unfunded commitments	$ 9,545	$ 10,609	$ 9,545	$ 10,609

Stock-Based Awards - Veritex (Green) 2014 Plan - Fair Value Options Exercised and Restricted Stock Units Vested (Details) - Veritex (Green) 2014 Plan - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Non-Performance Based Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-performance-based stock options exercised	$ 18	$ 1,650
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity instrument other than option, units vested	2,169	700
PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity instrument other than option, units vested	$ 227	$ 624

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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-Name Accounting Standards Codification
-Section 35
-Paragraph 1D
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480483/718-10-35-1D

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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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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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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Reference 28: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

+ Details

Securities - Maturities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Available For Sale Amortized Cost
Due in one year or less	$ 2,026	$ 0
Due from one year to five years	46,477	53,692
Due from five years to ten years	188,542	205,911
Due after ten years	54,167	58,462
Total investment securities available for sale, single maturity date	291,212	318,065
Amortized Cost	1,007,871	1,195,694
Available For Sale Fair value
Due in one year or less	1,913	0
Due from one year to five years	47,002	54,179
Due from five years to ten years	157,908	190,406
Due after ten years	44,636	53,351
Total investment securities available for sale	251,459	297,936
Fair value	879,083	1,096,292
Held-to-Maturity Amortized Cost
Due in one year or less	0	0
Due from one year to five years	4,466	0
Due from five years to ten years	12,839	8,275
Due after ten years	95,180	105,382
Total investment securities held to maturity, single maturity date	112,485	113,657
Amortized Cost	181,546	186,168
Held-to-Maturity Fair Value
Due in one year or less	0	0
Due from one year to five years	4,407	0
Due from five years to ten years	12,115	8,129
Due after ten years	76,564	90,778
Total investment securities held to maturity	93,086	98,907
Fair value	147,836	158,781
Mortgage-backed securities and collateralized mortgage obligations
Available For Sale Amortized Cost
Amortized cost	612,453	765,864
Amortized Cost	122,595	156,408
Available For Sale Fair value
Fair value	527,089	692,617
Fair value	101,893	139,011
Held-to-Maturity Amortized Cost
Amortized cost	69,061	72,511
Amortized Cost	34,344	36,342
Held-to-Maturity Fair Value
Fair value	54,750	59,874
Asset-backed securities
Available For Sale Amortized Cost
Amortized cost	34,456	42,015
Amortized Cost	34,456	42,015
Available For Sale Fair value
Fair value	31,975	39,691
Fair value	31,975	39,691
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	69,750
Amortized Cost	69,750	69,750
Available For Sale Fair value
Fair value	68,560	66,048
Fair value	68,560	66,048
Held-to-Maturity Amortized Cost
Amortized cost	0	0
Held-to-Maturity Fair Value
Fair value	$ 0	$ 0

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income tax expense for the period	$ 9,282	$ 12,248	$ 30,019	$ 28,429
Effective tax rate	22.20%	22.00%	22.30%	21.10%
Net discrete tax expense (benefit), true-up adjustment	$ 505	$ 0	$ 658	$ (1,100)
Effective tax rate excluding discrete tax item	20.90%		21.80%	21.90%
Return to provision adjustment			$ 505
Excess tax expense, share-based payment awards			$ 153

- Definition

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

+ References + Details

Fair Value

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value

The following table summarizes assets measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:


	September 30, 2023
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Financial Assets:
AFS debt securities	$	—	$	879,083	$	—	$	879,083
Equity securities with a readily determinable fair value	9,457		—		—		9,457

LHFS(1)	—		40,507		—		40,507
Interest rate swap designated as hedging instruments	—		20,893		—		20,893
Correspondent interest rate swaps not designated as hedging instruments	—		51,973		—		51,973
Customer interest rate swaps not designated as hedging instruments	—		54		—		54
Correspondent interest rate caps and collars not designated as hedging instruments	—		2,543		—		2,543

Financial Liabilities:
Interest rate swap designated as hedging instruments	$	—	$	62,077	$	—	$	62,077
Correspondent interest rate swaps not designated as hedging instruments	—		75		—		75
Customer interest rate swaps not designated as hedging instruments	—		51,418		—		51,418

Customer interest rate caps and collars not designated as hedging instruments	—		2,543		—		2,543

1) Represents LHFS elected to be carried at fair value.


	December 31, 2022
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total 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
Paycheck Protection Program (“PPP”) loans	—		—		1,995		1,995
LHFS(1)	—		19,775		—		19,775
Interest rate swap 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 swap 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..

There were no transfers between Level 2 and Level 3 during the nine months ended September 30, 2023 and December 31, 2022.

The following table summarizes assets measured at fair value on a non-recurring basis as of September 30, 2023 and December 31, 2022, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:


	Fair Value Measurements Using
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
As of September 30, 2023
Assets:
Collateral dependent loans with an ACL	$	—	$	—	$	11,050	$	11,050
Servicing assets with a valuation allowance	—		—		7,088		7,088
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

At September 30, 2023, collateral dependent loans with an allowance had a recorded investment of $14,042, with $2,992 specific allowance for credit loss allocated. At December 31, 2022, collateral dependent loans with an allowance had a carrying value of $10,632, with $2,663 of specific allowance for credit loss allocated.

At September 30, 2023, servicing assets of $9,132 had a valuation allowance totaling $2,043. At December 31, 2022, servicing assets of $13,435 had a valuation allowance totaling $2,451.

There were no liabilities measured at fair value on a non-recurring basis as of September 30, 2023 or December 31, 2022.

Fair Value of Financial Instruments

The Company’s methods of determining fair value of financial instruments in this Note are consistent with its methodologies disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Please refer to Note 17 in the Company’s Annual Report on Form 10-K for information on these methods.

The estimated fair values and carrying values of all financial instruments not measured at fair value on a recurring basis under current authoritative guidance as of September 30, 2023 and December 31, 2022 were as follows:


			Fair Value
	Carrying Amount		Level 1		Level 2		Level 3
September 30, 2023
Financial assets:
Cash and cash equivalents	$	713,408	$	—	$	713,408	$	—
HTM debt securities	181,546		—		147,836		—

LHFS(1)	806		—		—		806


LHI(2)	9,507,333		—		—		9,326,018
Accrued interest receivable	47,739		—		47,739		—
BOLI	84,867		—		84,867		—
Servicing asset	6,273		—		6,273		—
Equity securities without a readily determinable fair value	11,256		N/A		N/A		N/A
FHLB and FRB stock	59,138		N/A		N/A		N/A
Financial liabilities:
Deposits	$	10,196,518	$	—	$	9,418,008	$	—
Advances from FHLB	200,000		—		199,844		—
Accrued interest payable	33,575		—		33,575		—
Subordinated debentures and subordinated notes	229,531		—		229,531		—


December 31, 2022
Financial assets:
Cash and cash equivalents	$	436,077	$	—	$	436,077	$	—
HTM 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	—		—		—		—

(1) LHFS represent 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

Stock-Based Awards

9 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement [Abstract]

Stock-Based Awards

2010 Stock Option and Equity Incentive Plan (“2010 Incentive Plan”)

The Company recognized no stock compensation expense related to the 2010 Incentive Plan for the three and nine months ended September 30, 2023 and 2022.

A summary of option activity under the 2010 Incentive Plan for the nine months ended September 30, 2023 and 2022, and changes during the periods then ended, is presented below:


	2010 Incentive Plan
	Non-Performance Based Stock Options
	Shares Underlying Options	Weighted Exercise Price		Weighted Average Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1, 2022	1,000	$	10.43




Outstanding and exercisable at September 30, 2022	1,000	$	10.43	1.07

Outstanding at January 1, 2023	1,000	$	10.43	1.07	$	147



Exercised	(1,000)	10.43
Outstanding and exercisable at September 30, 2023	—	$	—	—	$	—

As of September 30, 2023, December 31, 2022 and September 30, 2022 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 under the 2010 Incentive Plan for the nine months ended September 30, 2023 and 2022 is presented below:


	Fair Value of Options Exercised as of September 30,
	2023		2022
Nonperformance-based stock options exercised	$	16	$	—

2022 Equity Plan and Green Acquired Omnibus Plans

Grants of Restricted Stock Units

During the three and nine months ending September 30, 2023, the Company granted non-performance-based RSUs and performance-based restricted stock units (“PSUs”) under the 2022 Amended and Restated Omnibus Incentive Plan (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 nine months ending September 30, 2023 have an annual graded vesting over a three year period from the grant date.

The PSUs granted in February 2023 are subject to a service, performance and market conditions. The performance and market condition determine the number of awards to vest. The service period is from February 1, 2023 to January 31, 2026, the performance conditions performance period is from January 1, 2023 to December 31, 2025 and the market condition performance period is from February 1, 2023 to January 31, 2026. A Monte Carlo simulation was used to estimate the fair value of PSUs on the grant date.

Stock Compensation Expense

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
2022 Equity Plan	$	2,471	$	2,918	$	7,616	$	8,266
Veritex (Green) 2014 Plan	489		197		1,398		811

2022 Equity Plan

A summary of the status of the Company’s stock options under the 2022 Equity Plan as of September 30, 2023 and 2022, and changes during the nine months then ended, is as follows:


	2022 Equity Plan
	Non-performance Based Stock Options
	Shares Underlying Options	Weighted Exercise Price		Weighted Average Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1, 2022	710,043	$	24.38
Granted	1,500	31.26



Exercised	(44,049)	23.21
Outstanding at September 30, 2022	667,494	$	24.47	6.19
Options exercisable at September 30, 2022	541,650	$	24.57	5.93

Outstanding at January 1, 2023	657,494	$	24.47


Forfeited	(1,666)	17.38
Cancelled	(3,804)	29.13
Exercised	(17,285)	18.29
Outstanding at September 30, 2023	634,739	$	24.63	4.84 years	$	97
Options exercisable at September 30, 2023	608,739	$	24.79	4.78 years	$	97

As of September 30, 2023, December 31, 2022 and September 30, 2022, there was $36, $172 and $327 of total unrecognized compensation expense related to options awarded under the 2022 Equity Plan, respectively. The unrecognized compensation expense at September 30, 2023 is expected to be recognized over the remaining weighted average requisite service period of 0.01 years.

A summary of the status of the Company’s RSUs under the 2022 Equity Plan as of September 30, 2023 and 2022, and changes during the nine months then ended, is as follows:


	2022 Equity Plan
	Non-performance-Based
	RSUs
	Units	Weighted Average Grant Date Fair Value
Outstanding at January 1, 2022	598,051	$	23.39
Granted	519,455	33.99

Vested into shares	(140,857)	26.49
Forfeited	(13,693)	32.91
Outstanding at September 30, 2022	962,956	$	28.52

Outstanding at January 1, 2023	955,104	$	28.38
Granted	289,252	27.17

Vested into shares	(237,940)	29.58
Forfeited	(30,533)	32.23
Outstanding at September 30, 2023	975,883	$	27.61

A summary of the status of the Company’s PSUs under the 2022 Equity Plan as of September 30, 2023 and 2022, and changes during the nine months then ended, is as follows:


	2022 Equity Plan
	Performance-Based
	PSUs
	Units	Weighted Average Grant Date Fair Value
Outstanding at January 1, 2022	156,471	$	24.17
Granted	39,429	40.38
Incremental PSUs granted upon performance conditions met	31,655	23.90
Vested into shares	(94,991)	21.49

Outstanding at September 30, 2022	132,564	$	30.15

Outstanding at January 1, 2023	126,707	$	31.19
Granted	53,310	27.55

Vested into shares	(41,781)	26.42
Forfeited	(8,468)	30.90
Outstanding at September 30, 2023	129,768	$	30.28

As of September 30, 2023, December 31, 2022 and September 30, 2022, there was $16,869, $17,160 and $14,327 of total unrecognized compensation related to RSUs and PSUs awarded under the 2022 Equity Plan, respectively. The unrecognized compensation expense at September 30, 2023 is expected to be recognized over the remaining weighted average requisite service period of 1.83 years.

A summary of the fair value of the Company’s stock options exercised, RSUs and PSUs vested under the 2022 Equity Plan during the nine months ended September 30, 2023 and 2022 is presented below:


	Fair Value of Options Exercised or RSUs Vested in the Nine Months Ended September 30,
	2023	2022
Non-performance-based stock options exercised	66	1,650
RSUs vested	3,800	2,503
PSUs vested	1,070	2,270

Veritex (Green) 2014 Plan

A summary of the status of the Company’s stock options under the Veritex (Green) 2014 Plan as of September 30, 2023 and 2022, and changes during the nine months then ended, is as follows:


	Veritex (Green) 2014 Plan
	Non-performance Based Stock Options
	Shares Underlying Options	Weighted Exercise Price		Weighted Average Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1, 2022	217,804	$	19.62



Cancelled	(790)
Exercised	(58,642)	19.21
Outstanding at September 30, 2022	158,372	$	19.76	5.42
Options exercisable at September 30, 2022	149,646	$	19.11	5.29

Outstanding at January 1, 2023	155,212	$	19.83



Cancelled	(9,717)	21.38
Exercised	(13,266)	22.74
Outstanding at September 30, 2023	132,229	$	21.89	3.91 years	$	267
Options exercisable at September 30, 2023	132,229	$	21.89	3.91 years	$	267
Weighted average fair value of options granted during the period		$	—

As of September 30, 2023 and December 31, 2022 there was no unrecognized compensation expense related to options awarded under the Veritex (Green) 2014 Plan. As of September 30, 2022 there was $25 of total unrecognized compensation expense related to options awarded under the Veritex (Green) 2014 Plan, respectively.

A summary of the status of the Company’s RSUs under the Veritex (Green) 2014 Plan as of September 30, 2023 and 2022 and changes during the nine months then ended, is as follows:


	Veritex (Green) 2014 Plan
	Non-performance-Based
	RSUs
	Units	Weighted Average Grant Date Fair Value
Outstanding at January 1, 2022	122,784	$	21.13
Granted	4,231	40.38
Vested into shares	(33,531)	21.80
Forfeited	(7,601)	29.13
Outstanding at September 30, 2022	85,883	$	21.11

Outstanding at January 1, 2023	86,233	$	21.09

Vested into shares	(19,282)	29.66
Forfeited	(2,232)	29.13
Outstanding at September 30, 2023	64,719	$	18.26

A summary of the status of the Company’s PSUs under the Veritex (Green) 2014 Plan as of September 30, 2023 and 2022 and changes during the nine months then ended, is as follows:


	Veritex (Green) 2014 Plan
	Performance-Based
	PSUs
	Units	Weighted Average Grant Date Fair Value
Outstanding at January 1, 2022	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)	19.69

Outstanding at September 30, 2022	19,173	$	29.26

Outstanding at January 1, 2023	19,173	$	30.74


Vested into shares	(8,531)	25.94

Outstanding at September 30, 2023	10,642	$	31.93

As of September 30, 2023, December 31, 2022 and September 30, 2022, there was $2,232, $3,825, and $1,024, 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 0.87 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 nine months ended September 30, 2023 and 2022 presented below:


	Fair Value of Options Exercised or RSUs Vested in the Nine Months Ended September 30,
	2023		2022
Non-performance-based stock options exercised	$	18	$	1,650
RSUs vested	2,169		700
PSU vested	227		624

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 September 30, 2023 and 2022, and changes during the nine months 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, 2022	66,143	$	12.56



Cancelled	(21,235)	11.40
Exercised	(1,746)	13.20
Outstanding at September 30, 2022	43,162	$	13.11	2.30 years

Outstanding at January 1, 2023	43,162	$	13.11




Exercised	(32,378)	13.26
Outstanding at September 30, 2023	10,784	$	12.65	4.32 years	$	57

A summary of the fair value of the Company’s stock options exercised under the Green 2010 Plan during the nine months ended September 30, 2023 and 2022 presented below:


	Fair Value of Options Exercised as of September 30,
	2023	2022
Nonperformance-based stock options exercised	379	55

Supplemental Statement of Cash Flows

9 Months Ended

Sep. 30, 2023

Supplemental Cash Flow Elements [Abstract]

Supplemental Statement of Cash Flows

Other supplemental cash flow information is presented below:


	Nine Months Ended September 30,
	2023		2022
	(in thousands)
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest	$	208,668	$	34,647
Cash paid for income taxes	38,893		26,000
Supplemental Disclosures of Non-Cash Flow Information:



Transfer of AFS debt securities to HTM debt securities	—		117,001
Net foreclosure of OREO and repossessed assets	—		1,032

Noncash assets acquired in business combination1



LHI	—		(681)






Goodwill	—		681

1 Represents adjustments to provisional estimates recorded during the nine months ended September 30, 2022 for the acquisition of North Avenue Capital, LLC.

Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

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 three and nine months ended September 30, 2023 and 2022:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Numerator:
Net income	$	32,621	$	43,322	$	104,762	$	106,418
Denominator:
Weighted average shares outstanding for basic EPS	54,300		53,979		54,233		52,886
Dilutive effect of employee stock-based awards	297		654		330		769
Adjusted weighted average shares outstanding	54,597		54,633		54,563		53,655
EPS:
Basic	$	0.60	$	0.80	$	1.93	$	2.01
Diluted	$	0.60	$	0.79	$	1.92	$	1.98

Derivative Financial Instruments - Balance Sheet Information (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Derivative [Line Items]
Notional Amount	$ 3,559,768	$ 2,922,362
Asset Derivative
Gross derivatives	33,835	36,878
Offsetting derivative assets	(41,628)	(30,982)
Liability Derivative
Gross derivatives	74,485	63,997
Offsetting derivative liabilities	(41,628)	(30,982)
Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	1,275,000	1,175,000
Asset Derivative
Gross derivatives	20,893	26,523
Liability Derivative
Gross derivatives	62,077	54,171
Designated as Hedging Instrument \| Interest rate swap on money market deposit account payments
Derivative [Line Items]
Notional Amount	250,000	250,000
Asset Derivative
Gross derivatives	16,877	21,234
Liability Derivative
Gross derivatives	0	0
Designated as Hedging Instrument \| Interest rate swaps on customer loan interest payments
Derivative [Line Items]
Notional Amount	375,000	375,000
Asset Derivative
Gross derivatives	0	0
Liability Derivative
Gross derivatives	55,251	49,211
Designated as Hedging Instrument \| Interest rate collars on customer loan interest payments
Derivative [Line Items]
Notional Amount	450,000	450,000
Asset Derivative
Gross derivatives	1,237	3,267
Liability Derivative
Gross derivatives	6,826	4,960
Designated as Hedging Instrument \| Interest rate floor on customer loan interest payments
Derivative [Line Items]
Notional Amount	200,000	100,000
Asset Derivative
Gross derivatives	2,779	2,022
Liability Derivative
Gross derivatives	0	0
Non-hedging Derivatives
Derivative [Line Items]
Notional Amount	2,284,768	1,747,362
Asset Derivative
Gross derivatives	54,570	41,337
Liability Derivative
Gross derivatives	54,036	40,808
Financial Institution Counterparty \| Non-hedging Derivatives \| Interest rate swaps
Derivative [Line Items]
Notional Amount	877,614	805,311
Asset Derivative
Gross derivatives	51,973	38,839
Liability Derivative
Gross derivatives	75	1,126
Financial Institution Counterparty \| Non-hedging Derivatives \| Interest rate caps and corridors
Derivative [Line Items]
Notional Amount	264,770	68,370
Asset Derivative
Gross derivatives	2,543	1,494
Liability Derivative
Gross derivatives	0	0
Commercial Customer Counterparty \| Non-hedging Derivatives \| Interest rate swaps
Derivative [Line Items]
Notional Amount	877,614	805,311
Asset Derivative
Gross derivatives	54	1,004
Liability Derivative
Gross derivatives	51,418	38,188
Commercial Customer Counterparty \| Non-hedging Derivatives \| Interest rate caps and corridors
Derivative [Line Items]
Notional Amount	264,770	68,370
Asset Derivative
Gross derivatives	0	0
Liability Derivative
Gross derivatives	$ 2,543	$ 1,494

Securities - Unrealized Loss Position (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
AFS
Less Than 12 Months	$ 52,964	$ 868,558
12 Months or More	781,371	171,941
Totals	834,335	1,040,499
AFS Unrealized Loss
Less Than 12 Months	9,209	72,521
12 Months or More	121,148	28,641
Totals	130,357	101,162
HTM Fair Value
Less Than 12 Months	17,947	111,760
12 Months or More	129,889	42,944
Totals	147,836	154,704
HTM Unrealized Loss
Less Than 12 Months	1,262	16,172
12 Months or More	32,448	11,221
Totals	33,710	27,393
Corporate bonds
AFS
Less Than 12 Months	24,419	197,946
12 Months or More	157,421	15,568
Totals	181,840	213,514
AFS Unrealized Loss
Less Than 12 Months	6,580	15,697
12 Months or More	28,330	1,682
Totals	34,910	17,379
Municipal securities
AFS
Less Than 12 Months	20,667	33,919
12 Months or More	19,978	8,813
Totals	40,645	42,732
AFS Unrealized Loss
Less Than 12 Months	752	848
12 Months or More	5,328	3,350
Totals	6,080	4,198
HTM Fair Value
Less Than 12 Months	17,947	85,671
12 Months or More	75,139	9,161
Totals	93,086	94,832
HTM Unrealized Loss
Less Than 12 Months	1,262	11,411
12 Months or More	18,137	3,345
Totals	19,399	14,756
Mortgage-backed securities
AFS
Less Than 12 Months	154	115,467
12 Months or More	101,233	22,780
Totals	101,387	138,247
AFS Unrealized Loss
Less Than 12 Months	0	11,104
12 Months or More	20,715	6,317
Totals	20,715	17,421
HTM Fair Value
Less Than 12 Months	0	804
12 Months or More	26,241	28,784
Totals	26,241	29,588
HTM Unrealized Loss
Less Than 12 Months	0	85
12 Months or More	8,103	6,668
Totals	8,103	6,753
Collateralized mortgage obligations
AFS
Less Than 12 Months	0	482,358
12 Months or More	425,196	71,198
Totals	425,196	553,556
AFS Unrealized Loss
Less Than 12 Months	0	42,553
12 Months or More	64,662	13,296
Totals	64,662	55,849
HTM Fair Value
Less Than 12 Months	0	25,285
12 Months or More	28,509	4,999
Totals	28,509	30,284
HTM Unrealized Loss
Less Than 12 Months	0	4,676
12 Months or More	6,208	1,208
Totals	6,208	5,884
Asset-backed securities
AFS
Less Than 12 Months	7,724	15,195
12 Months or More	8,983	11,207
Totals	16,707	26,402
AFS Unrealized Loss
Less Than 12 Months	1,877	991
12 Months or More	923	1,621
Totals	2,800	2,612
Collateralized loan obligations
AFS
Less Than 12 Months	0	23,673
12 Months or More	68,560	42,375
Totals	68,560	66,048
AFS Unrealized Loss
Less Than 12 Months	0	1,328
12 Months or More	1,190	2,375
Totals	$ 1,190	$ 3,703

Stock-Based Awards - Veritex Green 2014 Plan - Options (Details) $ / shares in Units, $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2023 USD ($) $ / shares shares	Sep. 30, 2022 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares
Shares Underlying Options
Options exercisable at end of period (in shares) \| shares	0	1,000
Weighted Exercise Price
Options exercisable at end of period (in dollars per share)	$ 0	$ 10.43
Weighted Average Contractual Term
Exercisable (in years)		1 year 25 days
Aggregate Intrinsic Value
Exercisable \| $	$ 0
Non-Performance Based Stock Options
Shares Underlying Options
Outstanding at the end of period (in shares) \| shares		1,000
Weighted Exercise Price
Outstanding at the end of period (in dollars per share)		$ 10.43
Weighted Average Contractual Term
Outstanding (in years)		1 year 25 days
Veritex (Green) 2014 Plan \| Non-Performance Based Stock Options
Shares Underlying Options
Outstanding at beginning of period (in shares) \| shares	155,212,000	217,804,000	217,804,000
Cancelled (in shares) \| shares	(9,717,000)	(790,000)
Exercised (in shares) \| shares	(13,266,000)	(58,642,000)
Outstanding at the end of period (in shares) \| shares	132,229,000	158,372,000	155,212,000
Options exercisable at end of period (in shares) \| shares	132,229,000	149,646,000
Weighted Exercise Price
Outstanding at beginning of period (in dollars per share)	$ 19.83	$ 19.62	$ 19.62
Cancelled (in dollars per share)	21.38
Exercised (in dollars per share)	22.74	19.21
Outstanding at the end of period (in dollars per share)	21.89	19.76	$ 19.83
Options exercisable at end of period (in dollars per share)	$ 21.89	$ 19.11
Weighted Average Contractual Term
Outstanding (in years)	3 years 10 months 28 days	5 years 5 months 1 day
Exercisable (in years)	3 years 10 months 28 days	5 years 3 months 14 days
Aggregate Intrinsic Value
Outstanding \| $	$ 267
Exercisable \| $	$ 267
Weighted average fair value of options granted during the period (in dollars per share)	$ 0
Unrecognized compensation expense \| $	$ 0	$ 25	$ 0

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statement of Comprehensive Income [Abstract]
NET INCOME	$ 32,621	$ 43,322	$ 104,762	$ 106,418
Net unrealized (losses) gains on debt securities AFS:
Change in net unrealized loss on debt securities AFS during the period, net	(19,068)	(48,572)	(38,496)	(137,022)
(Accretion) amortization from transfer of debt securities from AFS to HTM	(168)	(154)	3,289	3,950
Reclassification adjustment for net losses included in net income	0	0	5,321	0
Net unrealized loss on debt securities AFS	(19,236)	(48,726)	(29,886)	(133,072)
Net unrealized loss on derivative instruments designated as cash flow hedges	(11,917)	(18,416)	(19,872)	(43,370)
Other comprehensive loss, before tax	(31,153)	(67,142)	(49,758)	(176,442)
Income tax benefit	(6,507)	(14,067)	(11,328)	(37,881)
Other comprehensive loss, net of tax	(24,646)	(53,075)	(38,430)	(138,561)
COMPREHENSIVE INCOME (LOSS)	$ 7,975	$ (9,753)	$ 66,332	$ (32,143)

Capital Requirements and Restrictions on Retained Earnings (Tables)

9 Months Ended

Sep. 30, 2023

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 PCA Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
As of September 30, 2023
Total capital (to RWA)
Company	$	1,504,000	12.95	%	$	929,112	8.0	%	$	1,161,390	10.0	%
Bank	1,477,654		12.73		928,612		8.0		1,160,765		10.0
Tier 1 capital (to RWA)
Company	1,204,446		10.37		696,883		6.0		696,883		6.0
Bank	1,376,779		11.86		696,516		6.0		928,687		8.0
Common equity tier 1 (to RWA)
Company	1,174,612		10.11		522,824		4.5		n/a		n/a
Bank	1,376,779		11.86		522,387		4.5		754,558		6.5
Tier 1 capital (to average assets)
Company	1,204,446		10.10		477,008		4.0		n/a		n/a
Bank	1,376,779		11.56		476,394		4.0		595,493		5.0
As of December 31, 2022
Total capital (to 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

Securities - Allowance For Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Debt Securities, Available-for-Sale, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Allowance for credit losses beginning balance	$ 885	$ 0	$ 0	$ 0
Credit loss recovery	(885)
Credit loss recovery		0	0	0
Allowance for credit losses ending balance	$ 0	$ 0	$ 0	$ 0

LHI and ACL - Trouble Debt Restructuring (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($)
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	$ 89,135
30 to 59 Days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	0
60 to 89 Days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	0
90 Days or Greater
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	491
Commercial \| Commercial Real Estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	25,545
Commercial \| Commercial Real Estate \| 30 to 59 Days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	0
Commercial \| Commercial Real Estate \| 60 to 89 Days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	0
Commercial \| Commercial Real Estate \| 90 Days or Greater
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	491
1 - 4 family residential \| Real Estate \| Residential Real Estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	41,066
1 - 4 family residential \| Real Estate \| Residential Real Estate \| 30 to 59 Days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	0
1 - 4 family residential \| Real Estate \| Residential Real Estate \| 60 to 89 Days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	0
1 - 4 family residential \| Real Estate \| Residential Real Estate \| 90 Days or Greater
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	0
Non-owner occupied commercial real estate (“NOOCRE”) \| Real Estate \| Commercial Real Estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	22,524
Non-owner occupied commercial real estate (“NOOCRE”) \| Real Estate \| Commercial Real Estate \| 30 to 59 Days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	0
Non-owner occupied commercial real estate (“NOOCRE”) \| Real Estate \| Commercial Real Estate \| 60 to 89 Days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	0
Non-owner occupied commercial real estate (“NOOCRE”) \| Real Estate \| Commercial Real Estate \| 90 Days or Greater
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	0
Interest Rate Reduction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	48,560
Interest Rate Reduction \| Commercial \| Commercial Real Estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	$ 26,036
Financing receivable, troubled debt restructuring, postmodification percentage (in percent)	0.90%
Interest Rate Reduction \| 1 - 4 family residential \| Real Estate \| Residential Real Estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	$ 41,066
Financing receivable, troubled debt restructuring, postmodification percentage (in percent)	4.40%
Interest Rate Reduction \| Non-owner occupied commercial real estate (“NOOCRE”) \| Real Estate \| Commercial Real Estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	$ 22,524
Financing receivable, troubled debt restructuring, postmodification percentage (in percent)	0.90%
Contractual Interest Rate Reduction \| Real Estate \| Residential Real Estate \| Minimum
Financing Receivable, Troubled Debt Restructuring [Line Items]
Weighted-average contractual interest rate (in percent)	7.50%
Contractual Interest Rate Reduction \| Real Estate \| Residential Real Estate \| Maximum
Financing Receivable, Troubled Debt Restructuring [Line Items]
Weighted-average contractual interest rate (in percent)	6.00%

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities:
Net income	$ 104,762,000	$ 106,418,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of fixed assets and intangibles	14,899,000	14,001,000
Net amortization of time deposit premium, debt discount and debt issuance costs	722,000	735,000
Provision for credit losses and unfunded commitments	32,471,000	16,493,000
Accretion of loan discount	(2,884,000)	(3,953,000)
Stock-based compensation expense	9,014,000	9,077,000
Excess tax expense (benefit) from stock compensation	259,000	(1,082,000)
Net amortization of premiums on debt securities	1,925,000	3,210,000
Unrealized loss on equity securities recognized in earnings	335,000	1,299,000
Change in cash surrender value and mortality rates of BOLI	(371,000)	(836,000)
Loss on sales of debt securities	5,321,000	0
Change in fair value of government guaranteed loans using fair value option	(2,006,000)	(644,000)
Gain on sales of mortgage LHFS	(67,000)	(546,000)
Gain on sales of government guaranteed loans	(13,593,000)	(5,608,000)
Servicing asset (recoveries) impairment, net	(407,000)	1,332,000
Originations of LHFS	(52,629,000)	(46,831,000)
Proceeds from sales of LHFS	37,138,000	57,227,000
Equity method investment loss (income)	1,172,000	(275,000)
Increase in other assets	(34,572,000)	(42,425,000)
Increase in accounts payable and other liabilities	36,579,000	41,796,000
Net cash provided by operating activities	138,068,000	149,388,000
Cash flows from investing activities:
Purchases of AFS debt securities	(439,633,000)	(452,599,000)
Proceeds from sales of AFS debt securities	109,793,000	0
Proceeds from maturities, calls and pay downs of AFS debt securities	511,343,000	80,183,000
Purchases of HTM debt securities	0	(17,460,000)
Maturity, calls and paydowns of HTM debt securities	3,196,000	3,083,000
Proceeds (purchases) of other investments	41,246,000	(28,547,000)
Sales of securities under agreements to resell	0	102,288,000
Net loans originated	(232,978,000)	(1,688,254,000)
Proceeds from sale of government guaranteed loans	82,950,000	33,764,000
Net disposals to premises and equipment	(1,019,000)	(3,231,000)
Net cash provided by (used in) investing activities	74,898,000	(1,970,773,000)
Cash flows from financing activities:
Net increase in deposits	1,073,318,000	1,384,854,000
Net (decrease) increase in advances from FHLB	(975,000,000)	372,438,000
Net change in securities sold under agreement to repurchase	0	(1,680,000)
Net proceeds on sale of common stock in public offering	0	153,869,000
Payments to tax authorities for stock-based compensation	(2,208,000)	(3,066,000)
Proceeds from exercise of employee stock options	803,000	579,000
Dividends paid	(32,548,000)	(31,496,000)
Net cash provided by financing activities	64,365,000	1,875,498,000
Net increase in cash and cash equivalents	277,331,000	54,113,000
Cash and cash equivalents at beginning of period	436,077,000	379,784,000
Cash and cash equivalents at end of period	$ 713,408,000	$ 433,897,000

Fair Value - Financial Instruments (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022
Financial assets:
HTM debt securities	$ 147,836,000	$ 158,781,000
Securities purchased under agreements to resell	0		$ 0
Equity securities without a readily determinable fair value	11,256,000	10,072,000
FHLB and FRB stock	59,138,000	101,568,000
Financial liabilities:
Subordinated debentures and subordinated notes	229,531,000	228,775,000
Carrying Amount
Financial assets:
Cash and cash equivalents	713,408,000	436,077,000
HTM debt securities	181,546,000	186,168,000
Securities purchased under agreements to resell		0
LHFS	806,000	866,000
LHI		9,399,614,000
Accrued interest receivable	47,739,000	44,035,000
BOLI	84,867,000	84,496,000
Servicing asset	6,273,000	3,896,000
Equity securities without a readily determinable fair value	11,256,000	10,072,000
FHLB and FRB stock	59,138,000	101,568,000
Financial liabilities:
Deposits	10,196,518,000	9,123,234,000
Advances from FHLB	200,000,000	1,175,000,000
Accrued interest payable	33,575,000	8,795,000
Subordinated debentures and subordinated notes	229,531,000	228,775,000
Securities sold under agreements to repurchase		0
Level 1 Inputs \| Fair Value
Financial assets:
Cash and cash equivalents	0	0
HTM debt securities	0	0
Securities purchased under agreements to resell		0
LHFS	0	0
LHI		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 agreements to repurchase		0
Level 2 Inputs \| Fair Value
Financial assets:
Cash and cash equivalents	713,408,000	436,077,000
HTM debt securities	147,836,000	158,781,000
Securities purchased under agreements to resell		0
LHFS	0	866,000
LHI		0
Accrued interest receivable	47,739,000	44,035,000
BOLI	84,867,000	84,496,000
Servicing asset	6,273,000	3,896,000
Financial liabilities:
Deposits	9,418,008,000	8,341,419,000
Advances from FHLB	199,844,000	1,156,852,000
Accrued interest payable	33,575,000	8,795,000
Subordinated debentures and subordinated notes	229,531,000	228,775,000
Securities sold under agreements to repurchase		0
Level 3 Inputs \| Fair Value
Financial assets:
Cash and cash equivalents	0	0
HTM debt securities	0	0
Securities purchased under agreements to resell		0
LHFS	806,000	0
LHI		9,163,616,000
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 agreements to repurchase		$ 0
Real Estate, Commercial and Consumer Portfolio Segments \| Carrying Amount
Financial assets:
LHI	9,507,333,000
Real Estate, Commercial and Consumer Portfolio Segments \| Level 1 Inputs \| Fair Value
Financial assets:
LHI	0
Real Estate, Commercial and Consumer Portfolio Segments \| Level 2 Inputs \| Fair Value
Financial assets:
LHI	0
Real Estate, Commercial and Consumer Portfolio Segments \| Level 3 Inputs \| Fair Value
Financial assets:
LHI	$ 9,326,018,000

Legal Contingencies	9 Months Ended
Legal Contingencies	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Legal Contingencies	Legal Contingencies Litigation The Company may from time to time be involved in legal actions arising from normal business activities. In the opinion of management, there are no claims for which it is reasonably possible that an adverse outcome would have a material effect on the Company's financial position, liquidity or results of operations. The Company is not aware of any material unasserted claims.

Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
INTEREST AND DIVIDEND INCOME
Interest and fees on loans	$ 167,368	$ 109,199	$ 482,802	$ 262,833
Debt securities	10,928	10,462	32,082	27,856
Deposits in financial institutions and Fed Funds sold	7,128	1,898	20,169	2,874
Equity securities and other investments	1,691	1,666	4,217	3,633
Total interest and dividend income	187,115	123,225	539,270	297,196
INTEREST EXPENSE
Transaction and savings deposits	39,936	12,897	102,750	18,742
Certificates and other time deposits	36,177	3,919	85,244	6,764
Advances from FHLB	8,523	2,543	38,443	4,924
Subordinated debentures and subordinated notes	3,118	2,826	9,252	8,206
Total interest expense	87,754	22,185	235,689	38,636
NET INTEREST INCOME	99,361	101,040	303,581	258,560
Provision for credit losses	8,627	6,650	33,012	15,150
(Benefit) provision for credit losses on unfunded commitments	(909)	850	(541)	1,343
Net interest income after provision (benefit) for credit losses	91,643	93,540	271,110	242,067
NONINTEREST INCOME
Service charges and fees on deposit accounts	5,159	5,217	15,448	14,966
Loan fees	1,564	2,786	5,148	7,965
Loss on sales of debt securities	0	0	(5,321)	0
Gain on sale of mortgage LHFS	21	16	67	546
Government guaranteed loan income, net	1,772	572	15,604	6,252
Equity method investment (loss) income	(136)	(1,058)	(1,172)	275
Customer swap income	202	3,358	1,380	5,625
Other	1,092	2,130	5,743	2,867
Total noninterest income	9,674	13,021	36,897	38,496
NONINTEREST EXPENSE
Salaries and employee benefits	30,949	29,714	91,464	84,151
Occupancy and equipment	4,881	4,615	14,681	13,628
Professional and regulatory fees	7,283	3,718	18,540	9,741
Data processing and software expense	4,541	3,509	13,970	9,816
Marketing	2,353	1,845	6,759	5,338
Amortization of intangibles	2,437	2,494	7,400	7,484
Telephone and communications	362	389	1,195	1,126
Merger and acquisition (“M&A”) expense	0	384	0	1,379
Other	6,608	4,323	19,217	13,053
Total noninterest expense	59,414	50,991	173,226	145,716
Income before income tax expense	41,903	55,570	134,781	134,847
Income tax expense	9,282	12,248	30,019	28,429
NET INCOME	$ 32,621	$ 43,322	$ 104,762	$ 106,418
Basic earnings per share (“EPS”) (in dollars per share)	$ 0.60	$ 0.80	$ 1.93	$ 2.01
Diluted EPS (in dollars per share)	$ 0.60	$ 0.79	$ 1.92	$ 1.98

Supplemental Statement of Cash Flows (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest	$ 208,668	$ 34,647
Cash paid for income taxes	38,893	26,000
Supplemental Disclosures of Non-Cash Flow Information:
Transfer of AFS debt securities to HTM debt securities	0	117,001
Net foreclosure of OREO and repossessed assets	0	1,032
Noncash assets acquired in business combination
LHI	0	(681)
Goodwill	$ 0	$ 681

Derivative Financial Instruments

9 Months Ended

Sep. 30, 2023

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 accompanying consolidated balance sheets and in the net change in each of these financial statement line items in the

accompanying consolidated statements of cash flows. For derivatives not designated as hedging instruments, swap fee income and gains and losses due to changes in fair value are included in other noninterest income and the operating section of the consolidated statement of cash flows. For derivatives designated as hedging instruments, the entire change in the fair value related to the derivative instrument is recognized as a component of other comprehensive income and subsequently reclassified into interest income or interest expense when the forecasted transaction affects income. The notional amounts and estimated fair values as of September 30, 2023 and December 31, 2022 are as shown in the table below.


	September 30, 2023						December 31, 2022
			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	$	16,877	$	—	$	250,000	$	21,234	$	—
Interest rate swaps on customer loan interest payments	375,000		—		55,251		375,000		—		49,211
Interest rate collars on customer loan interest payments	450,000		1,237		6,826		450,000		3,267		4,960
Interest rate floor on customer loan interest payments	200,000		2,779		—		100,000		2,022		—
Total derivatives designated as hedging instruments	$	1,275,000	$	20,893	$	62,077	$	1,175,000	$	26,523	$	54,171

Derivatives not designated as hedging instruments:
Financial institution counterparty:
Interest rate swaps	$	877,614	$	51,973	$	75	$	805,311	$	38,839	$	1,126
Interest rate caps and corridors	264,770		2,543		—		68,370		1,494		—
Commercial customer counterparty:
Interest rate swaps	877,614		54		51,418		805,311		1,004		38,188
Interest rate caps and corridors	264,770		—		2,543		68,370		—		1,494
Total derivatives not designated as hedging instruments	$	2,284,768	$	54,570	$	54,036	$	1,747,362	$	41,337	$	40,808
Offsetting derivative assets/liabilities	—		(41,628)		(41,628)		—		(30,982)		(30,982)
Total derivatives	$	3,559,768	$	33,835	$	74,485	$	2,922,362	$	36,878	$	63,997

Pre-tax (loss) gain included in the consolidated statements of income and related to derivative instruments for the three and nine months ended September 30, 2023 and 2022 were as follows.


	For the Three Months Ended September 30, 2023						For the Three Months Ended September 30, 2022
	(Loss) recognized in other comprehensive income on derivative		Gain (loss) reclassified from accumulated other comprehensive income into income		Location of (loss) gain reclassified from accumulated other comprehensive income into income		(Loss) gain recognized in other comprehensive income on derivative		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	$	(1,105)	$	1,105	Interest Expense		$	(1,106)	$	1,106	Interest Expense
Interest rate swap on money market deposit account payments	(1,751)		3,035		Interest Expense		5,855		1,124		Interest Expense
Interest rate swaps, collars and floors on customer loan interest payments	(9,060)		(5,260)		Interest Income		(23,165)		(873)		Interest Income
Total	$	(11,916)	$	(1,120)			$	(18,416)	$	1,357

					Net gain recognized in other noninterest income						Net gain recognized in other noninterest income
Derivatives not designated as hedging instruments:
Interest rate swaps, caps and collars					$	180					$	3,039


	For the Nine Months Ended September 30, 2023						For the Nine Months Ended September 30, 2022
	(Loss) gain recognized in other comprehensive income on derivative		Gain (loss) reclassified from accumulated other comprehensive income into income		Location of (loss) gain reclassified from accumulated other comprehensive income into income		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	$	(3,281)	$	3,281	Interest Expense		$	(2,464)	$	2,464	Interest Expense
Interest rate swap on money market deposit account payments	(4,358)		8,469		Interest Expense		17,567		1,182		Interest Expense
Interest rate swaps, collars and floors on customer loan interest payments	(12,233)		(13,773)		Interest Income		(58,473)		704		Interest Income
Total	$	(19,872)	$	(2,023)			$	(43,370)	$	4,350

					Net gain recognized in other noninterest income						Net gain recognized in other noninterest income
Derivatives not designated as hedging instruments:
Interest rate swaps, caps and collars					$	1,375					$	5,165

Cash Flow Hedges

We enter into cash flow hedge relationships to 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. To qualify for hedge accounting, a formal assessment is prepared to determine whether the hedging relationship, both at inception and on an ongoing basis, is expected to be highly effective in achieving offsetting cash flows attributable to the hedged risk during the term of the cash flow hedge. At inception a statistical regression analysis is prepared to determine hedge effectiveness. At each reporting period thereafter, a statistical regression or qualitative analysis is performed. If it is determined that hedge effectiveness has not been or will not continue to be highly effective, then hedge accounting ceases and any gain or loss in AOCI is recognized in earnings immediately. The cash flow hedges are recorded at fair value in other assets and other liabilities on the consolidated balance sheets with changes in fair value recorded in AOCI, net of tax. Amounts recorded to AOCI are reclassified into earnings in the same period in which the hedged asset or liability affects earnings and are presented in the same income statement line item as the earnings effect of the hedged asset or liability.

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, caps and collars outstanding as of September 30, 2023 and December 31, 2022.


	September 30, 2023
	Notional Amount		Fixed Rate	Floating Rate	Maturity	Fair Value
Non-hedging derivative instruments:
Customer interest rate derivative:
Interest rate swaps - receive fixed/pay floating	$	877,614	2.41% - 7.37%	LIBOR 1 month + 3.0% SOFR CME 1 month + 0.0% - 3.8% SOFR-NYFD 30 day avg + 2.5% - 3.0%	Wtd. Avg. 4.3 years	$	(51,622)
Interest rate caps and corridors	$	264,770	3.50% - 7.50%	SOFR CME 1 month + 0.0% - 2.5% SOFR + 0.0%	Wtd. Avg. 1.0 years	$	(2,543)

Correspondent interest rate derivative:
Interest rate swaps - pay fixed/receive floating	$	877,614	2.41% - 7.37%	LIBOR 1 month + 3.0% SOFR CME 1 month + 0.0% - 3.8% SOFR-NYFD 30 day avg + 2.5% - 3.0%	Wtd. Avg. 4.3 years	$	51,898
Interest rate caps and corridors	$	264,770	3.50% - 7.50%	SOFR CME 1 month + 0.0% - 2.5% SOFR + 0.0%	Wtd. Avg. 1.0 years	$	2,543

	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	2.41% - 8.47%	LIBOR 1 month + 2.8% - 5.0% SOFR CME 1 month + 0.0% - 3.8% SOFR-NYFD 30 day avg + 2.5% - 3.0%	Wtd. Avg. 5.1 years	$	(37,183)
Interest rate caps and corridors	$	68,370	3.50%	LIBOR 1 month + 0.0%	Wtd. Avg. 1.8 years	$	(1,494)

Correspondent interest rate derivative:
Interest rate swaps - pay fixed/receive floating	$	805,311	2.41% - 8.47%	LIBOR 1 month + 2.8% - 5.0% SOFR CME 1 month + 0.0% - 3.8% SOFR-NYFD 30 day avg + 2.5% - 3.0%	Wtd. Avg. 5.1 years	$	37,713
Interest rate caps and corridors	$	68,370	3.50%	LIBOR 1 month + 0.0%	Wtd. Avg. 1.8 years	$	1,494

Income Taxes

9 Months Ended

Sep. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income tax expense for the three and nine months ended September 30, 2023 and 2022 was as follows:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Income tax expense for the period	$	9,282		$	12,248		$	30,019		$	28,429
Effective tax rate	22.2		%	22.0		%	22.3		%	21.1		%

For the three months ended September 30, 2023, the Company had an effective tax rate of 22.2%. The Company had a net discrete tax expense of $505 thousand associated with return to provision adjustments during the three months ended

September 30, 2023. Excluding this discrete tax item, the Company had an effective tax rate of 20.9% for the three months ended September 30, 2023.

For the three months ended September 30, 2022, the Company had an effective tax rate of 22.0% with no significant discrete tax items during the three months ended September 30, 2022 impacting the effective tax rate.

For the nine months ended September 30, 2023, the Company had an effective tax rate of 22.3%. The Company had a net discrete tax expense of $658 thousand, of which $505 thousand was associated with a return to provision adjustment and $153 thousand associated with the recognition of an excess tax expense realized on share-based payment awards during the nine months ended September 30, 2023. Excluding these discrete tax items, the Company had an effective tax rate of 21.8% for the nine months ended September 30, 2023.

For the nine months ended September 30, 2022, the Company had an effective tax rate of 21.1%. The Company had a net discrete tax benefit of $1.1 million associated with the recognition of an excess tax expense realized on share-based payment awards during the nine months ended September 30, 2022. Excluding this discrete tax item, the Company had an effective tax rate of 21.9% for the nine months ended September 30, 2022.

- 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
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

Stock-Based Awards (Tables)

9 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement [Abstract]

Summary of Option Activity

A summary of option activity under the 2010 Incentive Plan for the nine months ended September 30, 2023 and 2022, and changes during the periods then ended, is presented below:


	2010 Incentive Plan
	Non-Performance Based Stock Options
	Shares Underlying Options	Weighted Exercise Price		Weighted Average Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1, 2022	1,000	$	10.43




Outstanding and exercisable at September 30, 2022	1,000	$	10.43	1.07

Outstanding at January 1, 2023	1,000	$	10.43	1.07	$	147



Exercised	(1,000)	10.43
Outstanding and exercisable at September 30, 2023	—	$	—	—	$	—

A summary of the status of the Company’s stock options under the 2022 Equity Plan as of September 30, 2023 and 2022, and changes during the nine months then ended, is as follows:


	2022 Equity Plan
	Non-performance Based Stock Options
	Shares Underlying Options	Weighted Exercise Price		Weighted Average Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1, 2022	710,043	$	24.38
Granted	1,500	31.26



Exercised	(44,049)	23.21
Outstanding at September 30, 2022	667,494	$	24.47	6.19
Options exercisable at September 30, 2022	541,650	$	24.57	5.93

Outstanding at January 1, 2023	657,494	$	24.47


Forfeited	(1,666)	17.38
Cancelled	(3,804)	29.13
Exercised	(17,285)	18.29
Outstanding at September 30, 2023	634,739	$	24.63	4.84 years	$	97
Options exercisable at September 30, 2023	608,739	$	24.79	4.78 years	$	97

A summary of the status of the Company’s stock options under the Veritex (Green) 2014 Plan as of September 30, 2023 and 2022, and changes during the nine months then ended, is as follows:


	Veritex (Green) 2014 Plan
	Non-performance Based Stock Options
	Shares Underlying Options	Weighted Exercise Price		Weighted Average Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1, 2022	217,804	$	19.62



Cancelled	(790)
Exercised	(58,642)	19.21
Outstanding at September 30, 2022	158,372	$	19.76	5.42
Options exercisable at September 30, 2022	149,646	$	19.11	5.29

Outstanding at January 1, 2023	155,212	$	19.83



Cancelled	(9,717)	21.38
Exercised	(13,266)	22.74
Outstanding at September 30, 2023	132,229	$	21.89	3.91 years	$	267
Options exercisable at September 30, 2023	132,229	$	21.89	3.91 years	$	267
Weighted average fair value of options granted during the period		$	—

A summary of the status of the Company’s stock options under the Green 2010 Plan as of September 30, 2023 and 2022, and changes during the nine months 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, 2022	66,143	$	12.56



Cancelled	(21,235)	11.40
Exercised	(1,746)	13.20
Outstanding at September 30, 2022	43,162	$	13.11	2.30 years

Outstanding at January 1, 2023	43,162	$	13.11




Exercised	(32,378)	13.26
Outstanding at September 30, 2023	10,784	$	12.65	4.32 years	$	57

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 under the 2010 Incentive Plan for the nine months ended September 30, 2023 and 2022 is presented below:


	Fair Value of Options Exercised as of September 30,
	2023		2022
Nonperformance-based stock options exercised	$	16	$	—

A summary of the fair value of the Company’s stock options exercised, RSUs and PSUs vested under the 2022 Equity Plan during the nine months ended September 30, 2023 and 2022 is presented below:


	Fair Value of Options Exercised or RSUs Vested in the Nine Months Ended September 30,
	2023	2022
Non-performance-based stock options exercised	66	1,650
RSUs vested	3,800	2,503
PSUs vested	1,070	2,270

A summary of the fair value of the Company’s stock options exercised and RSUs vested under the Veritex (Green) 2014 Plan during the nine months ended September 30, 2023 and 2022 presented below:


	Fair Value of Options Exercised or RSUs Vested in the Nine Months Ended September 30,
	2023		2022
Non-performance-based stock options exercised	$	18	$	1,650
RSUs vested	2,169		700
PSU vested	227		624

A summary of the fair value of the Company’s stock options exercised under the Green 2010 Plan during the nine months ended September 30, 2023 and 2022 presented below:


	Fair Value of Options Exercised as of September 30,
	2023	2022
Nonperformance-based stock options exercised	379	55

Schedule of Share-based Compensation Expense

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
2022 Equity Plan	$	2,471	$	2,918	$	7,616	$	8,266
Veritex (Green) 2014 Plan	489		197		1,398		811

Summary of Status of the Company's Restricted Shares or Restricted Stock Units

A summary of the status of the Company’s RSUs under the 2022 Equity Plan as of September 30, 2023 and 2022, and changes during the nine months then ended, is as follows:


	2022 Equity Plan
	Non-performance-Based
	RSUs
	Units	Weighted Average Grant Date Fair Value
Outstanding at January 1, 2022	598,051	$	23.39
Granted	519,455	33.99

Vested into shares	(140,857)	26.49
Forfeited	(13,693)	32.91
Outstanding at September 30, 2022	962,956	$	28.52

Outstanding at January 1, 2023	955,104	$	28.38
Granted	289,252	27.17

Vested into shares	(237,940)	29.58
Forfeited	(30,533)	32.23
Outstanding at September 30, 2023	975,883	$	27.61

A summary of the status of the Company’s PSUs under the 2022 Equity Plan as of September 30, 2023 and 2022, and changes during the nine months then ended, is as follows:


	2022 Equity Plan
	Performance-Based
	PSUs
	Units	Weighted Average Grant Date Fair Value
Outstanding at January 1, 2022	156,471	$	24.17
Granted	39,429	40.38
Incremental PSUs granted upon performance conditions met	31,655	23.90
Vested into shares	(94,991)	21.49

Outstanding at September 30, 2022	132,564	$	30.15

Outstanding at January 1, 2023	126,707	$	31.19
Granted	53,310	27.55

Vested into shares	(41,781)	26.42
Forfeited	(8,468)	30.90
Outstanding at September 30, 2023	129,768	$	30.28

A summary of the status of the Company’s RSUs under the Veritex (Green) 2014 Plan as of September 30, 2023 and 2022 and changes during the nine months then ended, is as follows:


	Veritex (Green) 2014 Plan
	Non-performance-Based
	RSUs
	Units	Weighted Average Grant Date Fair Value
Outstanding at January 1, 2022	122,784	$	21.13
Granted	4,231	40.38
Vested into shares	(33,531)	21.80
Forfeited	(7,601)	29.13
Outstanding at September 30, 2022	85,883	$	21.11

Outstanding at January 1, 2023	86,233	$	21.09

Vested into shares	(19,282)	29.66
Forfeited	(2,232)	29.13
Outstanding at September 30, 2023	64,719	$	18.26

A summary of the status of the Company’s PSUs under the Veritex (Green) 2014 Plan as of September 30, 2023 and 2022 and changes during the nine months then ended, is as follows:


	Veritex (Green) 2014 Plan
	Performance-Based
	PSUs
	Units	Weighted Average Grant Date Fair Value
Outstanding at January 1, 2022	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)	19.69

Outstanding at September 30, 2022	19,173	$	29.26

Outstanding at January 1, 2023	19,173	$	30.74


Vested into shares	(8,531)	25.94

Outstanding at September 30, 2023	10,642	$	31.93

Securities (Tables)

9 Months Ended

Sep. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Schedule of Gross Unrealized Loss Recognized on Equity Securities

The gross unrealized loss 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:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Unrealized loss recognized on equity securities with a readily determinable fair value	$	(304)	$	(429)	$	(335)	$	(1,299)

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:


	September 30, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		ACL		Fair Value
AFS

Corporate bonds	$	244,487	$	1,237	$	34,910	$	—	$	210,814
Municipal securities	46,725		—		6,080		—		40,645
Mortgage-backed securities	122,595		13		20,715		—		101,893
Collateralized mortgage obligations	489,858		—		64,662		—		425,196
Asset-backed securities	34,456		319		2,800		—		31,975
Collateralized loan obligations	69,750		—		1,190		—		68,560
	$	1,007,871	$	1,569	$	130,357	$	—	$	879,083

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		ACL		Fair Value
HTM
Mortgage-backed securities	$	34,344	$	—	$	8,103	$	—	$	26,241
Collateralized mortgage obligations	34,717		—		6,208		—		28,509
Municipal securities	112,485		—		19,399		—		93,086
	$	181,546	$	—	$	33,710	$	—	$	147,836


	December 31, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized 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

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized 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

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


	September 30, 2023
	Less Than 12 Months				12 Months or More				Totals
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
AFS

Corporate bonds	$	24,419	$	6,580	$	157,421	$	28,330	$	181,840	$	34,910
Municipal securities	20,667		752		19,978		5,328		40,645		6,080
Mortgage-backed securities	154		—		101,233		20,715		101,387		20,715
Collateralized mortgage obligations	—		—		425,196		64,662		425,196		64,662
Asset-backed securities	7,724		1,877		8,983		923		16,707		2,800
Collateralized loan obligations	—		—		68,560		1,190		68,560		1,190
	$	52,964	$	9,209	$	781,371	$	121,148	$	834,335	$	130,357

HTM
Mortgage-backed securities	$	—	$	—	$	26,241	$	8,103	$	26,241	$	8,103
Collateralized mortgage obligations	—		—		28,509		6,208		28,509		6,208
Municipal securities	17,947		1,262		75,139		18,137		93,086		19,399
	$	17,947	$	1,262	$	129,889	$	32,448	$	147,836	$	33,710


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

Schedule of Activity in Allowance for Credit Loss

The following table presents the activity in the allowance for credit losses for AFS debt securities:


	Three Months ended September 30,				Nine Months ended September 30,
	2023		2022		2023		2022
Allowance for credit losses:
Beginning balance	$	885	$	—	$	—	$	—
Credit loss recovery	(885)		—		—		—
Allowance for credit losses ending balance	$	—	$	—	$	—	$	—

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


	September 30, 2023
	AFS				HTM
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	2,026	$	1,913	$	—	$	—
Due from one year to five years	46,477		47,002		4,466		4,407
Due from five years to ten years	188,542		157,908		12,839		12,115
Due after ten years	54,167		44,636		95,180		76,564
	291,212		251,459		112,485		93,086
Mortgage-backed securities and collateralized mortgage obligations	612,453		527,089		69,061		54,750
Asset-backed securities	34,456		31,975		—		—
Collateralized loan obligations	69,750		68,560		—		—
	$	1,007,871	$	879,083	$	181,546	$	147,836


	December 31, 2022
	AFS				HTM
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	—	$	—	$	—	$	—
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

Schedule of Proceeds From Sales of Debt Securities AFS and Gross Gains and Losses

Proceeds from sales of debt securities AFS and gross gains and losses for the nine months ended September 30, 2023 and 2022 were as follows:


	Nine Months Ended September 30,
	2023		2022
Proceeds from sales (1)	$	109,793	$	—

Gross realized losses (1)	5,321		—

(1) There were no proceeds from sales or gross realized losses for the three months ended September 30, 2023 and 2022.

Fair Value - Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Assets measured at fair value
AFS debt securities	$ 879,083	$ 1,096,292
Equity securities with a readily determinable fair value	9,457	9,792
Derivative asset	33,835	36,878
Derivative liability	74,485	63,997
Designated as Hedging Instrument
Assets measured at fair value
Derivative asset	20,893	26,523
Derivative liability	62,077	54,171
Non-hedging Derivatives
Assets measured at fair value
Derivative asset	54,570	41,337
Derivative liability	54,036	40,808
Recurring
Assets measured at fair value
AFS debt securities	879,083	1,096,292
Equity securities with a readily determinable fair value	9,457	9,792
Paycheck Protection Program (“PPP”) loans		1,995
LHFS	40,507	19,775
Recurring \| Level 1 Inputs
Assets measured at fair value
AFS debt securities	0	0
Equity securities with a readily determinable fair value	9,457	9,792
Paycheck Protection Program (“PPP”) loans		0
LHFS	0	0
Recurring \| Level 2 Inputs
Assets measured at fair value
AFS debt securities	879,083	1,096,292
Equity securities with a readily determinable fair value	0	0
Paycheck Protection Program (“PPP”) loans		0
LHFS	40,507	19,775
Recurring \| Level 3 Inputs
Assets measured at fair value
AFS debt securities	0	0
Equity securities with a readily determinable fair value	0	0
Paycheck Protection Program (“PPP”) loans		1,995
LHFS	0	0
Interest rate swaps \| Recurring \| Designated as Hedging Instrument
Assets measured at fair value
Derivative asset	20,893	26,523
Derivative liability	62,077	54,171
Interest rate swaps \| Recurring \| Level 1 Inputs \| Designated as Hedging Instrument
Assets measured at fair value
Derivative asset	0	0
Derivative liability	0	0
Interest rate swaps \| Recurring \| Level 2 Inputs \| Designated as Hedging Instrument
Assets measured at fair value
Derivative asset	20,893	26,523
Derivative liability	62,077	54,171
Interest rate swaps \| Recurring \| Level 3 Inputs \| Designated as Hedging Instrument
Assets measured at fair value
Derivative asset	0	0
Derivative liability	0	0
Interest rate swaps \| Financial Institution Counterparty \| Non-hedging Derivatives
Assets measured at fair value
Derivative asset	51,973	38,839
Derivative liability	75	1,126
Interest rate swaps \| Financial Institution Counterparty \| Recurring \| Non-hedging Derivatives
Assets measured at fair value
Derivative asset	51,973	38,839
Derivative liability	75	1,126
Interest rate swaps \| Financial Institution Counterparty \| Recurring \| Level 1 Inputs \| Non-hedging Derivatives
Assets measured at fair value
Derivative asset	0	0
Derivative liability	0	0
Interest rate swaps \| Financial Institution Counterparty \| Recurring \| Level 2 Inputs \| Non-hedging Derivatives
Assets measured at fair value
Derivative asset	51,973	38,839
Derivative liability	75	1,126
Interest rate swaps \| Financial Institution Counterparty \| Recurring \| Level 3 Inputs \| Non-hedging Derivatives
Assets measured at fair value
Derivative asset	0	0
Derivative liability	0	0
Interest rate swaps \| Commercial Customer Counterparty \| Non-hedging Derivatives
Assets measured at fair value
Derivative asset	54	1,004
Derivative liability	51,418	38,188
Interest rate swaps \| Commercial Customer Counterparty \| Recurring \| Non-hedging Derivatives
Assets measured at fair value
Derivative asset	54	1,004
Derivative liability	51,418	38,188
Interest rate swaps \| Commercial Customer Counterparty \| Recurring \| Level 1 Inputs \| Non-hedging Derivatives
Assets measured at fair value
Derivative asset	0	0
Derivative liability	0	0
Interest rate swaps \| Commercial Customer Counterparty \| Recurring \| Level 2 Inputs \| Non-hedging Derivatives
Assets measured at fair value
Derivative asset	54	1,004
Derivative liability	51,418	38,188
Interest rate swaps \| Commercial Customer Counterparty \| Recurring \| Level 3 Inputs \| Non-hedging Derivatives
Assets measured at fair value
Derivative asset	0	0
Derivative liability	0	0
Interest rate caps and corridors \| Financial Institution Counterparty \| Recurring \| Non-hedging Derivatives
Assets measured at fair value
Derivative asset	2,543	1,494
Interest rate caps and corridors \| Financial Institution Counterparty \| Recurring \| Level 1 Inputs \| Non-hedging Derivatives
Assets measured at fair value
Derivative asset	0	0
Interest rate caps and corridors \| Financial Institution Counterparty \| Recurring \| Level 2 Inputs \| Non-hedging Derivatives
Assets measured at fair value
Derivative asset	2,543	1,494
Interest rate caps and corridors \| Financial Institution Counterparty \| Recurring \| Level 3 Inputs \| Non-hedging Derivatives
Assets measured at fair value
Derivative asset	0	0
Interest rate caps and corridors \| Commercial Customer Counterparty \| Recurring \| Non-hedging Derivatives
Assets measured at fair value
Derivative liability	2,543	1,494
Interest rate caps and corridors \| Commercial Customer Counterparty \| Recurring \| Level 1 Inputs \| Non-hedging Derivatives
Assets measured at fair value
Derivative liability	0	0
Interest rate caps and corridors \| Commercial Customer Counterparty \| Recurring \| Level 2 Inputs \| Non-hedging Derivatives
Assets measured at fair value
Derivative liability	2,543	1,494
Interest rate caps and corridors \| Commercial Customer Counterparty \| Recurring \| Level 3 Inputs \| Non-hedging Derivatives
Assets measured at fair value
Derivative liability	$ 0	$ 0

LHI and ACL - Balance Sheet Summary (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022	Jun. 30, 2023	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Loans and Allowance for Credit Losses
Loans	$ 9,638,352	$ 9,501,624
Deferred loan fees, net	(10,138)	(18,973)
Less: Allowance for credit losses (“ACL”)	(109,831)	(91,052)	$ (102,150)	$ (85,037)	$ (80,576)	$ (77,754)
Total LHI, net	9,518,383	9,391,599
Contractual principal balance	6,012	8,260
Discount on retained loans from sale	7,515	5,238
Real Estate \| Construction and land
Loans and Allowance for Credit Losses
Loans	1,705,053	1,787,400
Less: Allowance for credit losses (“ACL”)	(19,449)	(13,120)	(18,145)	(12,628)	(10,300)	(7,293)
Real Estate \| Farmland
Loans and Allowance for Credit Losses
Loans	59,684	43,500
Less: Allowance for credit losses (“ACL”)	(191)	(127)	(170)	(135)	(145)	(187)
Real Estate \| Residential Real Estate
Loans and Allowance for Credit Losses
Discount on retained loans from sale	3,457	4,135
Purchase of real estate loans		223,924
Receivable	167,847
Real Estate \| Residential Real Estate \| 1 - 4 family residential
Loans and Allowance for Credit Losses
Loans	933,225	894,456
Less: Allowance for credit losses (“ACL”)	(9,359)	(9,533)	(9,209)	(9,023)	(8,056)	(5,982)
Real Estate \| Residential Real Estate \| Multi-family residential
Loans and Allowance for Credit Losses
Loans	603,395	322,679
Less: Allowance for credit losses (“ACL”)	(4,840)	(2,607)	(4,707)	(2,127)	(2,186)	(2,664)
Real Estate \| Commercial Real Estate \| Owner occupied commercial real estate (“OOCRE”)
Loans and Allowance for Credit Losses
Loans	697,299	715,829
Less: Allowance for credit losses (“ACL”)	(7,719)	(8,707)	(7,519)	(6,652)	(7,609)	(9,215)
Real Estate \| Commercial Real Estate \| Non-owner occupied commercial real estate (“NOOCRE”)
Loans and Allowance for Credit Losses
Loans	2,398,060	2,341,379
Less: Allowance for credit losses (“ACL”)	(29,819)	(26,704)	(27,875)	(25,457)	(27,772)	(30,548)
Commercial
Loans and Allowance for Credit Losses
Loans	2,841,024	2,942,348
Less: Allowance for credit losses (“ACL”)	(37,639)	(30,142)	(34,197)	(26,698)	(24,374)	(21,632)
MW
Loans and Allowance for Credit Losses
Loans	390,767	446,227
Consumer
Loans and Allowance for Credit Losses
Loans	9,845	7,806
Less: Allowance for credit losses (“ACL”)	$ (350)	$ (112)	$ (328)	$ (2,317)	$ (134)	$ (233)

Securities - Carrying Amount and Fair Values (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 1,007,871		$ 1,195,694
Gross Unrealized Gains	1,569		1,760
Gross Unrealized Losses	130,357		101,162
ACL	0	$ 885	0	$ 0	$ 0	$ 0
Fair Value	879,083		1,096,292
HTM
Amortized Cost	181,546		186,168
Gross Unrealized Gains	0		6
Gross Unrealized Losses	33,710		27,393
ACL	0		0
Fair Value	147,836		158,781
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	244,487		268,179
Gross Unrealized Gains	1,237		1,445
Gross Unrealized Losses	34,910		17,379
ACL	0		0
Fair Value	210,814		252,245
Municipal securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	46,725		49,886
Gross Unrealized Gains	0		3
Gross Unrealized Losses	6,080		4,198
ACL	0		0
Fair Value	40,645		45,691
HTM
Amortized Cost	112,485		113,657
Gross Unrealized Gains	0		6
Gross Unrealized Losses	19,399		14,756
ACL	0		0
Fair Value	93,086		98,907
Mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	122,595		156,408
Gross Unrealized Gains	13		23
Gross Unrealized Losses	20,715		17,420
ACL	0		0
Fair Value	101,893		139,011
HTM
Amortized Cost	34,344		36,342
Gross Unrealized Gains	0		0
Gross Unrealized Losses	8,103		6,753
ACL	0		0
Fair Value	26,241		29,589
Collateralized mortgage obligations
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	489,858		609,456
Gross Unrealized Gains	0		0
Gross Unrealized Losses	64,662		55,850
ACL	0		0
Fair Value	425,196		553,606
HTM
Amortized Cost	34,717		36,169
Gross Unrealized Gains	0		0
Gross Unrealized Losses	6,208		5,884
ACL	0		0
Fair Value	28,509		30,285
Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	34,456		42,015
Gross Unrealized Gains	319		289
Gross Unrealized Losses	2,800		2,613
ACL	0		0
Fair Value	31,975		39,691
Collateralized loan obligations
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	69,750		69,750
Gross Unrealized Gains	0		0
Gross Unrealized Losses	1,190		3,702
ACL	0		0
Fair Value	$ 68,560		$ 66,048

LHI and ACL - Loans Held for Sale (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Loans and Allowance for Credit Losses
Total LHFS	$ 41,313	$ 20,641
SBA construction and land
Loans and Allowance for Credit Losses
Total LHFS	8,458	12,296
1 - 4 family residential
Loans and Allowance for Credit Losses
Total LHFS	806	866
SBA OOCRE
Loans and Allowance for Credit Losses
Total LHFS	9,140	5,915
SBA commercial
Loans and Allowance for Credit Losses
Total LHFS	$ 22,909	$ 1,564

LHI and ACL (Tables)

9 Months Ended

Sep. 30, 2023

Receivables [Abstract]

Summary of Loans in the Accompanying Consolidated Balance Sheets

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


	September 30, 2023		December 31, 2022
LHI, carried at amortized cost:
Real estate:
Construction and land	$	1,705,053	$	1,787,400
Farmland	59,684		43,500
1 - 4 family residential	933,225		894,456
Multi-family residential	603,395		322,679
Owner occupied commercial real estate (“OOCRE”)	697,299		715,829
Non-owner occupied commercial real estate (“NOOCRE”)	2,398,060		2,341,379
Commercial	2,841,024		2,942,348
MW	390,767		446,227
Consumer	9,845		7,806
	$	9,638,352	$	9,501,624

Deferred loan fees, net	(10,138)		(18,973)
ACL	(109,831)		(91,052)
Total LHI, net	$	9,518,383	$	9,391,599

Schedule of Activity in Allowance for Credit Loss

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


	Three Months Ended September 30, 2023
	Construction and Land		Farmland		Residential		Multifamily		OOCRE		NOOCRE		Commercial		MW		Consumer		Total
Balance at beginning of the period	$	18,145	$	170	$	9,209	$	4,707	$	7,519	$	27,875	$	34,197	$	—	$	328	$	102,150
Credit loss expense non-PCD loans	1,304		21		150		133		581		947		5,072		465		57		8,730
Credit (benefit) loss expense PCD loans	—		—		—		—		(6)		797		(9)				—		782
Charge-offs	—		—		—		—		(375)		—		(1,929)				(49)		(2,353)
Recoveries	—		—		—		—		—		200		308				14		522
Ending Balance	$	19,449	$	191	$	9,359	$	4,840	$	7,719	$	29,819	$	37,639	$	465	$	350	$	109,831


	Three Months Ended September 30, 2022
	Construction and Land		Farmland		Residential		Multifamily		OOCRE		NOOCRE		Commercial		Consumer		Total
Balance at beginning of the period	$	10,300	$	145	$	8,056	$	2,186	$	7,609	$	27,772	$	24,374	$	134	$	80,576
Credit (benefit) loss expense non-PCD loans	2,338		(10)		1,126		(59)		1,824		(1,651)		3,426		2,209		9,203
Credit (benefit) loss expense PCD loans	(10)		—		(163)		—		(1,720)		171		(819)		(12)		(2,553)
Charge-offs	—		—		—		—		(1,061)		(838)		(460)		(19)		(2,378)
Recoveries	—		—		4		—		—		3		177		5		189
Ending Balance	$	12,628	$	135	$	9,023	$	2,127	$	6,652	$	25,457	$	26,698	$	2,317	$	85,037


	Nine Months Ended September 30, 2023
	Construction and Land		Farmland		Residential		Multifamily		OOCRE		NOOCRE		Commercial		MW		Consumer		Total
Balance at beginning of the period	$	13,120	$	127	$	9,533	$	2,607	$	8,707	$	26,704	$	30,142	$	—	$	112	$	91,052
Credit (benefit) loss expense non-PCD loans	6,375		64		(169)		2,233		(467)		10,362		13,709		465		375		32,947
(Benefit) credit expense PCD loans	(46)		—		(7)		—		(30)		618		(470)		—		—		65
Charge-offs	—		—		—		—		(491)		(8,215)		(6,520)		—		(203)		(15,429)
Recoveries	—		—		2		—		—		350		778		—		66		1,196
Ending Balance	$	19,449	$	191	$	9,359	$	4,840	$	7,719	$	29,819	$	37,639	$	465	$	350	$	109,831


	Nine Months Ended September 30, 2022
	Construction and Land		Farmland		Residential		Multifamily		OOCRE		NOOCRE		Commercial		Consumer		Total
Balance at beginning of the period	$	7,293	$	187	$	5,982	$	2,664	$	9,215	$	30,548	$	21,632	$	233	$	77,754
Credit (benefit) loss expense non-PCD loans	5,360		(52)		3,269		(537)		2,821		(5,040)		10,538		4,549		20,908
(Benefit) credit loss expense PCD loans	(25)		—		(235)		—		(2,983)		844		(2,083)		(1,276)		(5,758)
Charge-offs	—		—		—		—		(2,646)		(1,391)		(4,282)		(1,244)		(9,563)
Recoveries	—		—		7		—		245		496		893		55		1,696
Ending Balance	$	12,628	$	135	$	9,023	$	2,127	$	6,652	$	25,457	$	26,698	$	2,317	$	85,037

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:


	September 30, 2023					December 31, 2022
		Real Property(1)		ACL Allocation			Real Property(1)		ACL Allocation






OOCRE		$	3,059	$	—		$	1,193	$	129
NOOCRE		32,698		2,000			20,896		2,138
Commercial		2,506		784			1,240		396
Mortgage warehouse		208		208			—		—
Consumer		—		—			15		—
Total		$	38,471	$	2,992		$	23,344	$	2,663

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

Schedule of Non-Accrual Loans

Nonaccrual loans aggregated by class of loans, as of September 30, 2023 and December 31, 2022, were as follows:


	September 30, 2023				December 31, 2022
	Nonaccrual		Nonaccrual With No ACL			Nonaccrual		Nonaccrual With No ACL



1 - 4 family residential	$	900	$	900		$	862	$	862

OOCRE	10,368		10,368			9,737		8,545
NOOCRE	32,779		21,451			21,377		13,178
Commercial	35,106		5,418			11,397		2,521
MW	208		—			—		—
Consumer	33		33			169		169
Total	$	79,394	$	38,170		$	43,542	$	25,275

Schedule of Age Analysis of Past Due Loans, Aggregated by Class of Loans

An age analysis of past due loans, aggregated by class of loans and including past due nonaccrual loans, as of September 30, 2023 and December 31, 2022, is as follows:


	September 30, 2023
	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)

Construction and land	$	—	$	—	$	—	$	—	$	1,705,053	$	—	$	1,705,053	$	—
Farmland	—		—		—		—		59,684		—		59,684		—
1 - 4 family residential	3,411		3,660		880		7,951		924,161		1,113		933,225		332
Multi-family residential	—		—		—		—		603,395		—		603,395		—
OOCRE	533		—		3,059		3,592		675,799		17,908		697,299		—
NOOCRE	13,413		—		19,061		32,474		2,351,481		14,105		2,398,060		—
Commercial	9,211		—		19,372		28,583		2,809,276		3,165		2,841,024		142
MW	—		—		208		208		390,559		—		390,767		—
Consumer	53		—		3		56		9,774		15		9,845		—
Total	$	26,621	$	3,660	$	42,583	$	72,864	$	9,529,182	$	36,306	$	9,638,352	$	474

(1) Total past due loans includes $13,718 of PCD loans as of September 30, 2023.

(2) Loans 90 days past due and still accruing excludes $448 of PCD loans as of September 30, 2023.


	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	$	1,784,168	$	1,544	$	1,787,400	$	—
Farmland	—		—		—		—		43,500		—		43,500		—
1 - 4 family residential	4,319		129		499		4,947		889,509		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		710,108		19,817		715,829		—
NOOCRE	5,156		—		20,896		26,052		2,315,327		12,748		2,341,379		—
Commercial	3,088		2,188		1,675		6,951		2,935,397		3,701		2,942,348		—
MW	—		—		—		—		446,227		—		446,227		—
Consumer	352		—		45		397		7,409		23		7,806		2
Total	$	18,378	$	5,614	$	24,308	$	48,300	$	9,453,324	$	39,013	$	9,501,624	$	125

(1) Total past due loans includes $13,178 of 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.

Schedule of Loans Modified as TDRs

The following table shows the amortized cost basis at the end of the reporting period of the loans modified to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of concession granted during the nine months ended September 30, 2023:

Loan Modifications Made to Borrowers Experiencing Financial Difficulty

Interest Rate Reduction

Amortized Cost Basis

% of Loan Class

Financial Impact

1-4 Family Residential Rentals1

41,066

4.4

Reduced weighted-average contractual interest rate from floating 7.5% to fixed 6.0%

1 1-4 Family Residential Rentals is included in the 1-4 family residential loan portfolio and is reported as such in accordance with Federal Financial Institutions Examination Council guidelines.


	Term Extension
	Amortized Cost Basis		% of Loan Class		Financial Impact
NOOCRE	$	22,524	0.9	%	Principal and interest deferred over three months
Commercial	26,036		0.9	%	Principal and interest deferred over three months
	$	48,560

The following table depicts the performance of loans that have been modified in the last 12 months:


Payment Status
	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due
1-4 Family Residential Rentals	$	41,066	$	—	$	—	$	—
NOOCRE	22,524		—		—		—
Commercial	25,545		—		—		491
Total	$	89,135	$	—	$	—	$	491

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

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
	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
As of September 30, 2023
Construction and land:
Pass	$	57,129	$	674,330	$	543,914	$	159,527	$	3,163	$	12,483	$	179,609	$	—	$	1,630,155
Special mention	23		3,963		8,584		3,450		26,073		—		4,283		—		46,376
Substandard	—		—		3,000		25,522		—		—		—		—		28,522

Total construction and land	$	57,152	$	678,293	$	555,498	$	188,499	$	29,236	$	12,483	$	183,892	$	—	$	1,705,053
Construction and land gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Farmland:
Pass	$	2,544	$	4,426	$	22,156	$	18,133	$	16	$	4,974	$	7,435	$	—	$	59,684



Total farmland	$	2,544	$	4,426	$	22,156	$	18,133	$	16	$	4,974	$	7,435	$	—	$	59,684
Farmland gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


1 - 4 family residential:
Pass	$	54,775	$	142,881	$	197,939	$	83,463	$	38,878	$	277,330	$	112,815	$	17,356	$	925,437
Special mention	3,750		—		—		—		—		312		—		—		4,062
Substandard	—		144		721		—		128		1,090		530		—		2,613
PCD	—		—		—		—		—		1,113		—		—		1,113
Total 1 - 4 family residential	$	58,525	$	143,025	$	198,660	$	83,463	$	39,006	$	279,845	$	113,345	$	17,356	$	933,225
1-4 family residential gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Multi-family residential:
Pass	$	5,644	$	80,058	$	253,708	$	198,048	$	8,140	$	18,922	$	10,099	$	—	$	574,619
Special mention	—		—		—		—		—		26,847		—		—		26,847
Substandard	—		—		—		—		1,929		—		—		—		1,929

Total multi-family residential	$	5,644	$	80,058	$	253,708	$	198,048	$	10,069	$	45,769	$	10,099	$	—	$	603,395
Multi-family residential gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

OOCRE:
Pass	$	61,309	$	159,683	$	110,464	$	91,418	$	41,080	$	172,864	$	3,763	$	—	$	640,581
Special mention	—		9,357		280		715		1,904		7,253		—		—		19,509
Substandard	—		—		1,766		—		—		17,535		—		—		19,301
PCD	—		—		—		—		—		17,908		—		—		17,908


Total OOCRE	$	61,309	$	169,040	$	112,510	$	92,133	$	42,984	$	215,560	$	3,763	$	—	$	697,299
OOCRE gross charge-offs	$	—	$	—	$	—	$	5	$	5	$	481	$	—	$	—	$	491

NOOCRE:
Pass	$	51,793	$	737,112	$	517,516	$	221,135	$	148,648	$	402,355	$	30,138	$	583	$	2,109,280
Special mention	—		3,699		38,981		26,850		41,335		64,806		—		—		175,671
Substandard	—		—		2,744		—		1,259		95,001		—		—		99,004
PCD	—		—		—		—		—		14,105		—		—		14,105
Total NOOCRE	$	51,793	$	740,811	$	559,241	$	247,985	$	191,242	$	576,267	$	30,138	$	583	$	2,398,060
NOOCRE gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	8,215	$	—	$	—	$	8,215

Commercial:
Pass	$	152,357	$	361,010	$	109,578	$	56,193	$	45,114	$	52,493	$	1,966,749	$	519	$	2,744,013
Special mention	—		14,103		650		—		—		9,567		7,664		—		31,984
Substandard	642		16,279		4,600		6,169		6,593		17,037		10,468		74		61,862
PCD	—		—		—		—		—		3,165		—		—		3,165
Total commercial	$	152,999	$	391,392	$	114,828	$	62,362	$	51,707	$	82,262	$	1,984,881	$	593	$	2,841,024
Commercial gross charge-offs	$	—	$	1,854	$	—	$	48	$	479	$	4,139	$	—	$	—	$	6,520

MW:
Pass	$	66,063	$	60,193	$	153	$	147	$	623	$	167	$	263,213	$	—	$	390,559

Substandard	—		—		—		—		—		208		—		—		208

Total MW	$	66,063	$	60,193	$	153	$	147	$	623	$	375	$	263,213	$	—	$	390,767
MW gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Consumer:
Pass	$	4,179	$	1,147	$	304	$	654	$	116	$	1,805	$	1,457	$	—	$	9,662
Special mention	—		—		—		—		—		89		—		—		89
Substandard	—		—		2		—		11		66		—		—		79
PCD	—		—		—		—		—		15		—		—		15
Total consumer	$	4,179	$	1,147	$	306	$	654	$	127	$	1,975	$	1,457	$	—	$	9,845
Consumer gross charge-offs	$	—	$	29	$	—	$	—	$	—	$	174	$	—	$	—	$	203

Total Pass	$	455,793	$	2,220,840	$	1,755,732	$	828,718	$	285,778	$	943,393	$	2,575,278	$	18,458	$	9,083,990
Total Special Mention	3,773		31,122		48,495		31,015		69,312		108,874		11,947		—		304,538
Total Substandard	642		16,423		12,833		31,691		9,920		130,937		10,998		74		213,518
Total PCD	—		—		—		—		—		36,306		—		—		36,306
Total	$	460,208	$	2,268,385	$	1,817,060	$	891,424	$	365,010	$	1,219,510	$	2,598,223	$	18,532	$	9,638,352
Total gross charge-offs	$	—	$	1,883	$	—	$	53	$	484	$	13,009	$	—	$	—	$	15,429

1 Term loans amortized cost basis by origination year excludes $10,138 of deferred loan fees, net.


	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
Substandard	—		—		—		—		—		—		—		—		—
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
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
PCD	—		—		—		—		—		—		—		—		—
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
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		1,954		13,744		—		—		—		15,698
PCD	—		—		—		—		—		—		—		—		—
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	$	90,543	$	83,996	$	40,030	$	31,269	$	1,906,074	$	553	$	2,757,945
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	$	95,732	$	92,734	$	58,642	$	39,699	$	2,026,813	$	630	$	2,942,348

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	$	985,767	$	398,380	$	391,505	$	786,325	$	2,677,207	$	1,884	$	8,983,247
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	$	1,017,699	$	431,810	$	479,768	$	935,168	$	2,849,209	$	2,006	$	9,501,624

1 Term loans amortized cost basis by origination year excludes $18,973 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:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Balance at beginning of period	$	14,923	$	15,680	$	14,880	$	17,705

Increase from loan sales	90		113		1,863		1,811
Servicing asset (net impairment), net recoveries	(455)		551		407		(1,332)
Amortization charged as a reduction to income	(1,197)		(934)		(3,789)		(2,774)
Balance at end of period	$	13,361	$	15,410	$	13,361	$	15,410

Schedule of Loans Held-for-Sale, Principal Sold

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
SBA LHI principal sold	$	2,896	$	2,215	$	9,826	$	18,101
Gain on sale of SBA LHI	243		140		822		803
USDA LHI principal sold	—		—		62,640		20,500
Gain on sale of USDA LHI	—		—		9,663		3,708

Schedule of Loans Held-for-Sale

The following table reflects LHFS.


	September 30, 2023		December 31, 2022
SBA construction and land	$	8,458	$	12,296
1 - 4 family residential	806		866
SBA OOCRE	9,140		5,915
SBA commercial	22,909		1,564
Total LHFS	$	41,313	$	20,641

LHI and ACL - Credit Quality Indicators (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Total consumer loans held for investment
Year one	$ 460,208		$ 460,208		$ 1,993,914
Year two	2,268,385		2,268,385		1,792,050
Year three	1,817,060		1,817,060		1,017,699
Year four	891,424		891,424		431,810
Year five	365,010		365,010		479,768
Prior	1,219,510		1,219,510		935,168
Revolving Loans Amortized Cost Basis	2,598,223		2,598,223		2,849,209
Revolving Loans Converted to Term	18,532		18,532		2,006
Total	9,638,352		9,638,352		9,501,624
Total gross charge-offs
2023			0
2022			1,883
2021			0
2020			53
2019			484
Prior			13,009
Revolving Loans Amortized Cost Basis, Write Off			0
Revolving Loans Converted to Term, Write Off			0
Total	2,353	$ 2,378	15,429	$ 9,563
Deferred loan fees, net	(10,138)		(10,138)		(18,973)
Pass
Total consumer loans held for investment
Year one	455,793		455,793		1,976,020
Year two	2,220,840		2,220,840		1,766,159
Year three	1,755,732		1,755,732		985,767
Year four	828,718		828,718		398,380
Year five	285,778		285,778		391,505
Prior	943,393		943,393		786,325
Revolving Loans Amortized Cost Basis	2,575,278		2,575,278		2,677,207
Revolving Loans Converted to Term	18,458		18,458		1,884
Total	9,083,990		9,083,990		8,983,247
Special mention
Total consumer loans held for investment
Year one	3,773		3,773		0
Year two	31,122		31,122		21,649
Year three	48,495		48,495		26,743
Year four	31,015		31,015		25,971
Year five	69,312		69,312		19,659
Prior	108,874		108,874		55,504
Revolving Loans Amortized Cost Basis	11,947		11,947		142,141
Revolving Loans Converted to Term	0		0		45
Total	304,538		304,538		291,712
Substandard
Total consumer loans held for investment
Year one	642		642		17,894
Year two	16,423		16,423		4,242
Year three	12,833		12,833		5,189
Year four	31,691		31,691		7,459
Year five	9,920		9,920		55,634
Prior	130,937		130,937		67,296
Revolving Loans Amortized Cost Basis	10,998		10,998		29,861
Revolving Loans Converted to Term	74		74		77
Total	213,518		213,518		187,652
PCD
Total consumer loans held for investment
Year one	0		0		0
Year two	0		0		0
Year three	0		0		0
Year four	0		0		0
Year five	0		0		12,970
Prior	36,306		36,306		26,043
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Converted to Term	0		0		0
Total	36,306		36,306		39,013
Commercial
Total consumer loans held for investment
Year one	152,999		152,999		490,978
Year two	391,392		391,392		137,120
Year three	114,828		114,828		95,732
Year four	62,362		62,362		92,734
Year five	51,707		51,707		58,642
Prior	82,262		82,262		39,699
Revolving Loans Amortized Cost Basis	1,984,881		1,984,881		2,026,813
Revolving Loans Converted to Term	593		593		630
Total	2,841,024		2,841,024		2,942,348
Total gross charge-offs
2023			0
2022			1,854
2021			0
2020			48
2019			479
Prior			4,139
Revolving Loans Amortized Cost Basis, Write Off			0
Revolving Loans Converted to Term, Write Off			0
Total	1,929	460	6,520	4,282
Commercial \| Pass
Total consumer loans held for investment
Year one	152,357		152,357		473,084
Year two	361,010		361,010		132,396
Year three	109,578		109,578		90,543
Year four	56,193		56,193		83,996
Year five	45,114		45,114		40,030
Prior	52,493		52,493		31,269
Revolving Loans Amortized Cost Basis	1,966,749		1,966,749		1,906,074
Revolving Loans Converted to Term	519		519		553
Total	2,744,013		2,744,013		2,757,945
Commercial \| Special mention
Total consumer loans held for investment
Year one	0		0		0
Year two	14,103		14,103		666
Year three	650		650		0
Year four	0		0		4,543
Year five	0		0		7,385
Prior	9,567		9,567		270
Revolving Loans Amortized Cost Basis	7,664		7,664		114,447
Revolving Loans Converted to Term	0		0		0
Total	31,984		31,984		127,311
Commercial \| Substandard
Total consumer loans held for investment
Year one	642		642		17,894
Year two	16,279		16,279		4,058
Year three	4,600		4,600		5,189
Year four	6,169		6,169		4,195
Year five	6,593		6,593		10,954
Prior	17,037		17,037		4,732
Revolving Loans Amortized Cost Basis	10,468		10,468		6,292
Revolving Loans Converted to Term	74		74		77
Total	61,862		61,862		53,391
Commercial \| PCD
Total consumer loans held for investment
Year one	0		0		0
Year two	0		0		0
Year three	0		0		0
Year four	0		0		0
Year five	0		0		273
Prior	3,165		3,165		3,428
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Converted to Term	0		0		0
Total	3,165		3,165		3,701
MW
Total consumer loans held for investment
Year one	66,063		66,063		0
Year two	60,193		60,193		0
Year three	153		153		0
Year four	147		147		0
Year five	623		623		46
Prior	375		375		162
Revolving Loans Amortized Cost Basis	263,213		263,213		446,019
Revolving Loans Converted to Term	0		0		0
Total	390,767		390,767		446,227
Total gross charge-offs
2023			0
2022			0
2021			0
2020			0
2019			0
Prior			0
Revolving Loans Amortized Cost Basis, Write Off			0
Revolving Loans Converted to Term, Write Off			0
Total			0
MW \| Pass
Total consumer loans held for investment
Year one	66,063		66,063		0
Year two	60,193		60,193		0
Year three	153		153		0
Year four	147		147		0
Year five	623		623		0
Prior	167		167		0
Revolving Loans Amortized Cost Basis	263,213		263,213		444,393
Revolving Loans Converted to Term	0		0		0
Total	390,559		390,559		444,393
MW \| Special mention
Total consumer loans held for investment
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
MW \| Substandard
Total consumer loans held for investment
Year one	0		0		0
Year two	0		0		0
Year three	0		0		0
Year four	0		0		0
Year five	0		0		46
Prior	208		208		162
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Converted to Term	0		0		0
Total	208		208		208
Consumer
Total consumer loans held for investment
Year one	4,179		4,179		1,965
Year two	1,147		1,147		452
Year three	306		306		872
Year four	654		654		216
Year five	127		127		135
Prior	1,975		1,975		2,548
Revolving Loans Amortized Cost Basis	1,457		1,457		1,618
Revolving Loans Converted to Term	0		0		0
Total	9,845		9,845		7,806
Total gross charge-offs
2023			0
2022			29
2021			0
2020			0
2019			0
Prior			174
Revolving Loans Amortized Cost Basis, Write Off			0
Revolving Loans Converted to Term, Write Off			0
Total	49	19	203	1,244
Consumer \| Pass
Total consumer loans held for investment
Year one	4,179		4,179		1,965
Year two	1,147		1,147		452
Year three	304		304		872
Year four	654		654		216
Year five	116		116		135
Prior	1,805		1,805		2,298
Revolving Loans Amortized Cost Basis	1,457		1,457		1,618
Revolving Loans Converted to Term	0		0		0
Total	9,662		9,662		7,556
Consumer \| Special mention
Total consumer loans held for investment
Year one	0		0		0
Year two	0		0		0
Year three	0		0		0
Year four	0		0		0
Year five	0		0		0
Prior	89		89		58
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Converted to Term	0		0		0
Total	89		89		58
Consumer \| Substandard
Total consumer loans held for investment
Year one	0		0		0
Year two	0		0		0
Year three	2		2		0
Year four	0		0		0
Year five	11		11		0
Prior	66		66		169
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Converted to Term	0		0		0
Total	79		79		169
Consumer \| PCD
Total consumer loans held for investment
Year one	0		0		0
Year two	0		0		0
Year three	0		0		0
Year four	0		0		0
Year five	0		0		0
Prior	15		15		23
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Converted to Term	0		0		0
Total	15		15		23
Construction and land \| Real Estate
Total consumer loans held for investment
Year one	57,152		57,152		347,855
Year two	678,293		678,293		727,870
Year three	555,498		555,498		380,789
Year four	188,499		188,499		69,241
Year five	29,236		29,236		30,673
Prior	12,483		12,483		15,569
Revolving Loans Amortized Cost Basis	183,892		183,892		215,263
Revolving Loans Converted to Term	0		0		140
Total	1,705,053		1,705,053		1,787,400
Total gross charge-offs
2023			0
2022			0
2021			0
2020			0
2019			0
Prior			0
Revolving Loans Amortized Cost Basis, Write Off			0
Revolving Loans Converted to Term, Write Off			0
Total	0	0	0	0
Construction and land \| Real Estate \| Pass
Total consumer loans held for investment
Year one	57,129		57,129		347,855
Year two	674,330		674,330		709,208
Year three	543,914		543,914		378,229
Year four	159,527		159,527		69,241
Year five	3,163		3,163		30,673
Prior	12,483		12,483		14,025
Revolving Loans Amortized Cost Basis	179,609		179,609		215,263
Revolving Loans Converted to Term	0		0		140
Total	1,630,155		1,630,155		1,764,634
Construction and land \| Real Estate \| Special mention
Total consumer loans held for investment
Year one	23		23		0
Year two	3,963		3,963		18,662
Year three	8,584		8,584		2,560
Year four	3,450		3,450		0
Year five	26,073		26,073		0
Prior	0		0		0
Revolving Loans Amortized Cost Basis	4,283		4,283		0
Revolving Loans Converted to Term	0		0		0
Total	46,376		46,376		21,222
Construction and land \| Real Estate \| Substandard
Total consumer loans held for investment
Year one	0		0		0
Year two	0		0		0
Year three	3,000		3,000		0
Year four	25,522		25,522		0
Year five	0		0		0
Prior	0		0		0
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Converted to Term	0		0		0
Total	28,522		28,522		0
Construction and land \| Real Estate \| PCD
Total consumer loans held for investment
Year one					0
Year two					0
Year three					0
Year four					0
Year five					0
Prior					1,544
Revolving Loans Amortized Cost Basis					0
Revolving Loans Converted to Term					0
Total					1,544
Farmland \| Real Estate
Total consumer loans held for investment
Year one	2,544		2,544		2,546
Year two	4,426		4,426		16,242
Year three	22,156		22,156		18,530
Year four	18,133		18,133		21
Year five	16		16		0
Prior	4,974		4,974		5,069
Revolving Loans Amortized Cost Basis	7,435		7,435		1,092
Revolving Loans Converted to Term	0		0		0
Total	59,684		59,684		43,500
Total gross charge-offs
2023			0
2022			0
2021			0
2020			0
2019			0
Prior			0
Revolving Loans Amortized Cost Basis, Write Off			0
Revolving Loans Converted to Term, Write Off			0
Total	0	0	0	0
Farmland \| Real Estate \| Pass
Total consumer loans held for investment
Year one	2,544		2,544		2,546
Year two	4,426		4,426		16,242
Year three	22,156		22,156		18,530
Year four	18,133		18,133		21
Year five	16		16		0
Prior	4,974		4,974		5,069
Revolving Loans Amortized Cost Basis	7,435		7,435		1,092
Revolving Loans Converted to Term	0		0		0
Total	59,684		59,684		43,500
Farmland \| Real Estate \| Special mention
Total consumer loans held for investment
Year one					0
Year two					0
Year three					0
Year four					0
Year five					0
Prior					0
Revolving Loans Amortized Cost Basis					0
Revolving Loans Converted to Term					0
Total					0
Farmland \| Real Estate \| Substandard
Total consumer loans held for investment
Year one					0
Year two					0
Year three					0
Year four					0
Year five					0
Prior					0
Revolving Loans Amortized Cost Basis					0
Revolving Loans Converted to Term					0
Total					0
Farmland \| Real Estate \| PCD
Total consumer loans held for investment
Year one					0
Year two					0
Year three					0
Year four					0
Year five					0
Prior					0
Revolving Loans Amortized Cost Basis					0
Revolving Loans Converted to Term					0
Total					0
Residential Real Estate \| Single Family \| Real Estate
Total consumer loans held for investment
Year one	58,525		58,525		135,006
Year two	143,025		143,025		188,819
Year three	198,660		198,660		87,861
Year four	83,463		83,463		43,293
Year five	39,006		39,006		41,960
Prior	279,845		279,845		260,254
Revolving Loans Amortized Cost Basis	113,345		113,345		136,537
Revolving Loans Converted to Term	17,356		17,356		726
Total	933,225		933,225		894,456
Total gross charge-offs
2023			0
2022			0
2021			0
2020			0
2019			0
Prior			0
Revolving Loans Amortized Cost Basis, Write Off			0
Revolving Loans Converted to Term, Write Off			0
Total	0	0	0	0
Residential Real Estate \| Single Family \| Real Estate \| Pass
Total consumer loans held for investment
Year one	54,775		54,775		135,006
Year two	142,881		142,881		188,635
Year three	197,939		197,939		87,861
Year four	83,463		83,463		43,293
Year five	38,878		38,878		41,960
Prior	277,330		277,330		257,768
Revolving Loans Amortized Cost Basis	112,815		112,815		86,900
Revolving Loans Converted to Term	17,356		17,356		726
Total	925,437		925,437		842,149
Residential Real Estate \| Single Family \| Real Estate \| Special mention
Total consumer loans held for investment
Year one	3,750		3,750		0
Year two	0		0		0
Year three	0		0		0
Year four	0		0		0
Year five	0		0		0
Prior	312		312		278
Revolving Loans Amortized Cost Basis	0		0		26,068
Revolving Loans Converted to Term	0		0		0
Total	4,062		4,062		26,346
Residential Real Estate \| Single Family \| Real Estate \| Substandard
Total consumer loans held for investment
Year one	0		0		0
Year two	144		144		184
Year three	721		721		0
Year four	0		0		0
Year five	128		128
Prior	1,090		1,090		1,028
Revolving Loans Amortized Cost Basis	530		530		23,569
Revolving Loans Converted to Term	0		0		0
Total	2,613		2,613		24,781
Residential Real Estate \| Single Family \| Real Estate \| PCD
Total consumer loans held for investment
Year one	0		0		0
Year two	0		0		0
Year three	0		0		0
Year four	0		0		0
Year five	0		0		0
Prior	1,113		1,113		1,180
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Converted to Term	0		0		0
Total	1,113		1,113		1,180
Residential Real Estate \| Multi-family residential \| Real Estate
Total consumer loans held for investment
Year one	5,644		5,644		72,044
Year two	80,058		80,058		80,793
Year three	253,708		253,708		110,426
Year four	198,048		198,048		10,356
Year five	10,069		10,069		46,566
Prior	45,769		45,769		2,494
Revolving Loans Amortized Cost Basis	10,099		10,099		0
Revolving Loans Converted to Term	0		0		0
Total	603,395		603,395		322,679
Total gross charge-offs
2023			0
2022			0
2021			0
2020			0
2019			0
Prior			0
Revolving Loans Amortized Cost Basis, Write Off			0
Revolving Loans Converted to Term, Write Off			0
Total	0	0	0	0
Residential Real Estate \| Multi-family residential \| Real Estate \| Pass
Total consumer loans held for investment
Year one	5,644		5,644		72,044
Year two	80,058		80,058		80,793
Year three	253,708		253,708		110,426
Year four	198,048		198,048		8,402
Year five	8,140		8,140		32,822
Prior	18,922		18,922		2,494
Revolving Loans Amortized Cost Basis	10,099		10,099		0
Revolving Loans Converted to Term	0		0		0
Total	574,619		574,619		306,981
Residential Real Estate \| Multi-family residential \| Real Estate \| Special mention
Total consumer loans held for investment
Year one	0		0		0
Year two	0		0		0
Year three	0		0		0
Year four	0		0		0
Year five	0		0		0
Prior	26,847		26,847		0
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Converted to Term	0		0		0
Total	26,847		26,847		0
Residential Real Estate \| Multi-family residential \| Real Estate \| Substandard
Total consumer loans held for investment
Year one	0		0		0
Year two	0		0		0
Year three	0		0		0
Year four	0		0		1,954
Year five	1,929		1,929		13,744
Prior	0		0		0
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Converted to Term	0		0		0
Total	1,929		1,929		15,698
Residential Real Estate \| Multi-family residential \| Real Estate \| PCD
Total consumer loans held for investment
Year one					0
Year two					0
Year three					0
Year four					0
Year five					0
Prior					0
Revolving Loans Amortized Cost Basis					0
Revolving Loans Converted to Term					0
Total					0
Commercial Real Estate \| Owner occupied commercial real estate (“OOCRE”) \| Real Estate
Total consumer loans held for investment
Year one	61,309		61,309		191,044
Year two	169,040		169,040		109,019
Year three	112,510		112,510		85,639
Year four	92,133		92,133		45,929
Year five	42,984		42,984		72,692
Prior	215,560		215,560		206,236
Revolving Loans Amortized Cost Basis	3,763		3,763		5,225
Revolving Loans Converted to Term	0		0		45
Total	697,299		697,299		715,829
Total gross charge-offs
2023			0
2022			0
2021			0
2020			5
2019			5
Prior			481
Revolving Loans Amortized Cost Basis, Write Off			0
Revolving Loans Converted to Term, Write Off			0
Total	375	1,061	491	2,646
Commercial Real Estate \| Owner occupied commercial real estate (“OOCRE”) \| Real Estate \| Pass
Total consumer loans held for investment
Year one	61,309		61,309		191,044
Year two	159,683		159,683		106,698
Year three	110,464		110,464		84,230
Year four	91,418		91,418		43,965
Year five	41,080		41,080		49,461
Prior	172,864		172,864		167,968
Revolving Loans Amortized Cost Basis	3,763		3,763		5,225
Revolving Loans Converted to Term	0		0		0
Total	640,581		640,581		648,591
Commercial Real Estate \| Owner occupied commercial real estate (“OOCRE”) \| Real Estate \| Special mention
Total consumer loans held for investment
Year one	0		0		0
Year two	9,357		9,357		2,321
Year three	280		280		1,409
Year four	715		715		1,964
Year five	1,904		1,904		0
Prior	7,253		7,253		3,447
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Converted to Term	0		0		45
Total	19,509		19,509		9,186
Commercial Real Estate \| Owner occupied commercial real estate (“OOCRE”) \| Real Estate \| Substandard
Total consumer loans held for investment
Year one	0		0		0
Year two	0		0		0
Year three	1,766		1,766		0
Year four	0		0		0
Year five	0		0		23,231
Prior	17,535		17,535		15,004
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Converted to Term	0		0		0
Total	19,301		19,301		38,235
Commercial Real Estate \| Owner occupied commercial real estate (“OOCRE”) \| Real Estate \| PCD
Total consumer loans held for investment
Year one	0		0		0
Year two	0		0		0
Year three	0		0		0
Year four	0		0		0
Year five	0		0		0
Prior	17,908		17,908		19,817
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Converted to Term	0		0		0
Total	17,908		17,908		19,817
Commercial Real Estate \| Non-owner occupied commercial real estate (“NOOCRE”) \| Real Estate
Total consumer loans held for investment
Year one	51,793		51,793		752,476
Year two	740,811		740,811		531,735
Year three	559,241		559,241		237,850
Year four	247,985		247,985		170,020
Year five	191,242		191,242		229,054
Prior	576,267		576,267		403,137
Revolving Loans Amortized Cost Basis	30,138		30,138		16,642
Revolving Loans Converted to Term	583		583		465
Total	2,398,060		2,398,060		2,341,379
Total gross charge-offs
2023			0
2022			0
2021			0
2020			0
2019			0
Prior			8,215
Revolving Loans Amortized Cost Basis, Write Off			0
Revolving Loans Converted to Term, Write Off			0
Total	0	$ 838	8,215	$ 1,391
Commercial Real Estate \| Non-owner occupied commercial real estate (“NOOCRE”) \| Real Estate \| Pass
Total consumer loans held for investment
Year one	51,793		51,793		752,476
Year two	737,112		737,112		531,735
Year three	517,516		517,516		215,076
Year four	221,135		221,135		149,246
Year five	148,648		148,648		196,424
Prior	402,355		402,355		305,434
Revolving Loans Amortized Cost Basis	30,138		30,138		16,642
Revolving Loans Converted to Term	583		583		465
Total	2,109,280		2,109,280		2,167,498
Commercial Real Estate \| Non-owner occupied commercial real estate (“NOOCRE”) \| Real Estate \| Special mention
Total consumer loans held for investment
Year one	0		0		0
Year two	3,699		3,699		0
Year three	38,981		38,981		22,774
Year four	26,850		26,850		19,464
Year five	41,335		41,335		12,274
Prior	64,806		64,806		51,451
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Converted to Term	0		0		0
Total	175,671		175,671		105,963
Commercial Real Estate \| Non-owner occupied commercial real estate (“NOOCRE”) \| Real Estate \| Substandard
Total consumer loans held for investment
Year one	0		0		0
Year two	0		0		0
Year three	2,744		2,744		0
Year four	0		0		1,310
Year five	1,259		1,259		7,659
Prior	95,001		95,001		46,201
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Converted to Term	0		0		0
Total	99,004		99,004		55,170
Commercial Real Estate \| Non-owner occupied commercial real estate (“NOOCRE”) \| Real Estate \| PCD
Total consumer loans held for investment
Year one	0		0		0
Year two	0		0		0
Year three	0		0		0
Year four	0		0		0
Year five	0		0		12,697
Prior	14,105		14,105		51
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Converted to Term	0		0		0
Total	$ 14,105		$ 14,105		$ 12,748

Off-Balance Sheet Loan Commitments (Tables)

9 Months Ended

Sep. 30, 2023

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 September 30, 2023 and December 31, 2022:


	September 30,		December 31,
	2023		2022
Commitments to extend credit	$	3,325,075	$	4,511,671
MW commitments	974,941		1,088,558
Standby and commercial letters of credit	101,602		98,179
Total	$	4,401,618	$	5,698,408

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 ACL on unfunded commitments is recorded in accounts payable and other liabilities on the consolidated balance sheets:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Beginning balance for ACL on unfunded commitments	$	10,454	$	9,759	$	10,086	$	9,266
(Benefit) provision for credit losses on unfunded commitments	(909)		850		(541)		1,343
Ending balance of ACL on unfunded commitments	$	9,545	$	10,609	$	9,545	$	10,609

Stock-Based Awards - 2022 Equity Plan - RSUs and PSUs (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Units
Incremental PSUs granted upon performance condition met (in shares)		10,566
Weighted Average Grant Date Fair Value
Incremental PSUs granted upon performance condition met (in dollars per share)		$ 19.69
RSUs \| 2022 Equity Plan
Units
Outstanding at the beginning of the period (in shares)	955,104	598,051
Granted (in shares)	289,252	519,455
Vested into shares (in shares)	(237,940)	(140,857)
Forfeited (in shares)	(30,533)	(13,693)
Outstanding at the end of the period (in shares)	975,883	962,956
Weighted Average Grant Date Fair Value
Outstanding at the beginning of the period (in dollars per share)	$ 28.38	$ 23.39
Granted (in dollars per share)	27.17	33.99
Vested into shares (in dollars per share)	29.58	26.49
Forfeited (in dollars per share)	32.23	32.91
Outstanding at the end of the period (in dollars per share)	$ 27.61	$ 28.52
Additional disclosures
Equity instrument other than option, units vested	$ 3,800	$ 2,503
PSUs \| 2022 Equity Plan
Units
Outstanding at the beginning of the period (in shares)	126,707	156,471
Granted (in shares)	53,310	39,429
Vested into shares (in shares)	(41,781)	(94,991)
Incremental PSUs granted upon performance condition met (in shares)		31,655
Forfeited (in shares)	(8,468)
Outstanding at the end of the period (in shares)	129,768	132,564
Weighted Average Grant Date Fair Value
Outstanding at the beginning of the period (in dollars per share)	$ 31.19	$ 24.17
Granted (in dollars per share)	27.55	40.38
Incremental PSUs granted upon performance condition met (in dollars per share)		23.90
Vested into shares (in dollars per share)	26.42	21.49
Forfeited (in dollars per share)	30.90
Outstanding at the end of the period (in dollars per share)	$ 30.28	$ 30.15
Additional disclosures
Equity instrument other than option, units vested	$ 1,070	$ 2,270
Restricted Stock Units and Performance Stock Based Units \| 2022 Equity Plan
Additional disclosures
Unrecognized compensation expense	$ 2,232	1,024	$ 3,825
Requisite service period to recognize compensation cost (in years)	10 months 13 days
Non-Performance Based Stock Options \| 2022 Equity Plan
Additional disclosures
Unrecognized compensation expense	$ 36	327	$ 172
Requisite service period to recognize compensation cost (in years)	3 days
Non-performance-based stock options exercised	$ 66	$ 1,650

Summary of Significant Accounting Policies - Additional Information (Details) shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023 shares	Sep. 30, 2022 shares	Sep. 30, 2023 branch shares	Sep. 30, 2022 shares
Segment Reporting Information [Line Items]
Excluded from diluted EPS weighted average shares (in shares)	1,300	654	1,300	767
Restricted Stock Units
Segment Reporting Information [Line Items]
Excluded from diluted EPS weighted average shares (in shares)	671	440	645	311
Employee Stock Options
Segment Reporting Information [Line Items]
Excluded from diluted EPS weighted average shares (in shares)	668	214	669	456
Dallas-Fort Worth
Segment Reporting Information [Line Items]
Number of branches (in branches) \| branch			18
Houston
Segment Reporting Information [Line Items]
Number of branches (in branches) \| branch			11

Fair Value (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Schedule of Assets Measured at Fair Value on a Recurring Basis


	September 30, 2023
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Financial Assets:
AFS debt securities	$	—	$	879,083	$	—	$	879,083
Equity securities with a readily determinable fair value	9,457		—		—		9,457

LHFS(1)	—		40,507		—		40,507
Interest rate swap designated as hedging instruments	—		20,893		—		20,893
Correspondent interest rate swaps not designated as hedging instruments	—		51,973		—		51,973
Customer interest rate swaps not designated as hedging instruments	—		54		—		54
Correspondent interest rate caps and collars not designated as hedging instruments	—		2,543		—		2,543

Financial Liabilities:
Interest rate swap designated as hedging instruments	$	—	$	62,077	$	—	$	62,077
Correspondent interest rate swaps not designated as hedging instruments	—		75		—		75
Customer interest rate swaps not designated as hedging instruments	—		51,418		—		51,418

Customer interest rate caps and collars not designated as hedging instruments	—		2,543		—		2,543

1) Represents LHFS elected to be carried at fair value.


	December 31, 2022
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total 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
Paycheck Protection Program (“PPP”) loans	—		—		1,995		1,995
LHFS(1)	—		19,775		—		19,775
Interest rate swap 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 swap 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..

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


	Fair Value Measurements Using
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
As of September 30, 2023
Assets:
Collateral dependent loans with an ACL	$	—	$	—	$	11,050	$	11,050
Servicing assets with a valuation allowance	—		—		7,088		7,088
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

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


			Fair Value
	Carrying Amount		Level 1		Level 2		Level 3
September 30, 2023
Financial assets:
Cash and cash equivalents	$	713,408	$	—	$	713,408	$	—
HTM debt securities	181,546		—		147,836		—

LHFS(1)	806		—		—		806


LHI(2)	9,507,333		—		—		9,326,018
Accrued interest receivable	47,739		—		47,739		—
BOLI	84,867		—		84,867		—
Servicing asset	6,273		—		6,273		—
Equity securities without a readily determinable fair value	11,256		N/A		N/A		N/A
FHLB and FRB stock	59,138		N/A		N/A		N/A
Financial liabilities:
Deposits	$	10,196,518	$	—	$	9,418,008	$	—
Advances from FHLB	200,000		—		199,844		—
Accrued interest payable	33,575		—		33,575		—
Subordinated debentures and subordinated notes	229,531		—		229,531		—


December 31, 2022
Financial assets:
Cash and cash equivalents	$	436,077	$	—	$	436,077	$	—
HTM 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	—		—		—		—

(1) LHFS represent mortgage LHFS that are carried at lower of cost or market.

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

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited consolidated financial statements include the accounts of Veritex Holdings, Inc. and its subsidiaries, including Veritex Community Bank. The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”), but do not include all of the information and footnotes required for complete financial statements. Intercompany transactions and balances are eliminated in consolidation. In management’s opinion, these unaudited consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair statement of the Company’s consolidated balance sheets at September 30, 2023 and December 31, 2022, consolidated statements of income, consolidated statements of comprehensive income (loss) and consolidated changes in stockholders’ equity for the three and nine months ended September 30, 2023 and 2022 and consolidated statements of cash flows for the nine months ended September 30, 2023 and 2022. Accounting measurements at interim dates inherently involve greater reliance on estimates than at year end and the results for the interim periods shown herein are not necessarily indicative of results to be expected for the full year due in part to global economic and financial market conditions, interest rates, access to sources of liquidity, market competition and interruptions of business processes. These unaudited consolidated financial statements have been prepared in accordance with GAAP for interim financial information and the instructions to Quarterly Reports on Form 10-Q adopted by the Securities and Exchange Commission (“SEC”). These unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2022 included in the Company’s Annual Report on Form 10-K, as filed with the SEC on February 28, 2023. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates and assumptions may also affect disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.
EPS	EPSEPS is based upon the weighted average shares outstanding.
Goodwill	Goodwill 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. During the second quarter of 2023, the Company observed a sustained decline in the market valuation of the Company’s common stock as a result of significant volatility in the banking industry with multiple high-profile bank failures and industry wide concerns related to liquidity, deposit outflows, unrealized securities losses and eroding consumer confidence in the banking system. As a result, the Company performed an interim quantitative impairment test with a trigger date of May 31, 2023. The Company determined the fair value of its reporting unit using a combination of a market and an income approach. Upon completion of the quantitative evaluation, the Company determined that the fair value of the Company's reporting unit exceeded its related carrying value, and therefore goodwill was not impaired. During the third quarter of 2023, the Company evaluated current conditions and concluded there have been no significant changes in the economic environment or projections, and no decline in fair value during the quarter. However, changing economic conditions that may adversely affect the Company's performance, the fair value of its assets and liabilities, or its stock price could result in future impairment, which could adversely affect earnings in future periods. Management will continue to monitor events that could impact this conclusion in the future.

Supplemental Statement of Cash Flows (Tables)

9 Months Ended

Sep. 30, 2023

Supplemental Cash Flow Elements [Abstract]

Schedule of Other Supplemental Cash Flow Information

Other supplemental cash flow information is presented below:


	Nine Months Ended September 30,
	2023		2022
	(in thousands)
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest	$	208,668	$	34,647
Cash paid for income taxes	38,893		26,000
Supplemental Disclosures of Non-Cash Flow Information:



Transfer of AFS debt securities to HTM debt securities	—		117,001
Net foreclosure of OREO and repossessed assets	—		1,032

Noncash assets acquired in business combination1



LHI	—		(681)






Goodwill	—		681

1 Represents adjustments to provisional estimates recorded during the nine months ended September 30, 2022 for the acquisition of North Avenue Capital, LLC.

Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Treasury Stock	APIC	Retained Earnings	AOCI
Beginning balance (in shares) at Dec. 31, 2021		49,372,329
Beginning balance at Dec. 31, 2021	$ 1,315,079	$ 560	$ (167,582)	$ 1,142,758	$ 275,273	$ 64,070
Beginning balance (in shares) at Dec. 31, 2021			6,638,094
Increase (Decrease) in Stockholders' Equity
Restricted stock units (“RSU”) vested, net of shares withheld to cover taxes (in shares)		227,619
Restricted stock units (“RSU”) vested, net of shares withheld to cover taxes	(3,066)	$ 2		(3,068)
Exercise of employee stock options (in shares)		69,469
Exercise of employee stock options	579	$ 1		578
Common stock follow-on offering (in shares)		4,314,474
Common stock follow-on offering	153,869	$ 43		153,826
Stock based compensation	9,077			9,077
Net income	106,418				106,418
Dividends paid	(31,496)				(31,496)
Other comprehensive loss	(138,561)					(138,561)
Ending balance (in shares) at Sep. 30, 2022		53,983,891
Ending balance at Sep. 30, 2022	1,411,899	$ 606	$ (167,582)	1,303,171	350,195	(74,491)
Ending balance (in shares) at Sep. 30, 2022			6,638,094
Beginning balance (in shares) at Jun. 30, 2022		53,951,037
Beginning balance at Jun. 30, 2022	1,429,442	$ 606	$ (167,582)	1,300,170	317,664	(21,416)
Beginning balance (in shares) at Jun. 30, 2022			6,638,094
Increase (Decrease) in Stockholders' Equity
Restricted stock units (“RSU”) vested, net of shares withheld to cover taxes (in shares)		26,933
Restricted stock units (“RSU”) vested, net of shares withheld to cover taxes	(74)			(74)
Exercise of employee stock options (in shares)		5,921
Exercise of employee stock options	(40)			(40)
Stock based compensation	3,115			3,115
Net income	43,322				43,322
Dividends paid	(10,791)				(10,791)
Other comprehensive loss	(53,075)					(53,075)
Ending balance (in shares) at Sep. 30, 2022		53,983,891
Ending balance at Sep. 30, 2022	1,411,899	$ 606	$ (167,582)	1,303,171	350,195	(74,491)
Ending balance (in shares) at Sep. 30, 2022			6,638,094
Beginning balance (in shares) at Dec. 31, 2022		54,029,955
Beginning balance at Dec. 31, 2022	$ 1,449,773	$ 607	$ (167,582)	1,306,852	379,299	(69,403)
Beginning balance (in shares) at Dec. 31, 2022	6,638,094		6,638,094
Increase (Decrease) in Stockholders' Equity
Restricted stock units (“RSU”) vested, net of shares withheld to cover taxes (in shares)		220,755
Restricted stock units (“RSU”) vested, net of shares withheld to cover taxes	$ (2,208)	$ 2		(2,210)
Exercise of employee stock options (in shares)		54,079
Exercise of employee stock options	803			803
Stock based compensation	9,014			9,014
Net income	104,762				104,762
Dividends paid	(32,548)				(32,548)
Other comprehensive loss	(38,430)					(38,430)
Ending balance (in shares) at Sep. 30, 2023		54,304,789
Ending balance at Sep. 30, 2023	$ 1,491,166	$ 609	$ (167,582)	1,314,459	451,513	(107,833)
Ending balance (in shares) at Sep. 30, 2023	6,638,094		6,638,094
Beginning balance (in shares) at Jun. 30, 2023		54,260,792
Beginning balance at Jun. 30, 2023	$ 1,491,280	$ 609	$ (167,582)	1,311,687	429,753	(83,187)
Beginning balance (in shares) at Jun. 30, 2023			6,638,094
Increase (Decrease) in Stockholders' Equity
Restricted stock units (“RSU”) vested, net of shares withheld to cover taxes (in shares)		41,249
Restricted stock units (“RSU”) vested, net of shares withheld to cover taxes	(226)			(226)
Exercise of employee stock options (in shares)		2,748
Exercise of employee stock options	38			38
Stock based compensation	2,960			2,960
Net income	32,621				32,621
Dividends paid	(10,861)				(10,861)
Other comprehensive loss	(24,646)					(24,646)
Ending balance (in shares) at Sep. 30, 2023		54,304,789
Ending balance at Sep. 30, 2023	$ 1,491,166	$ 609	$ (167,582)	$ 1,314,459	$ 451,513	$ (107,833)
Ending balance (in shares) at Sep. 30, 2023	6,638,094		6,638,094

Capital Requirements and Restrictions on Retained Earnings (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2023 USD ($) $ / shares	Sep. 30, 2022 USD ($) $ / shares	Sep. 30, 2023 USD ($) $ / shares	Sep. 30, 2022 USD ($) $ / shares	Dec. 31, 2022 USD ($)
Total capital (to RWA)
Actual amount	$ 1,504,000,000		$ 1,504,000,000		$ 1,395,904,000
Actual ratio (as a percent)	0.1295		0.1295		0.1163
For capital adequacy purposes amount	$ 929,112,000		$ 929,112,000		$ 960,209,000
For capital adequacy purposes ratio (as a percent)	0.080		0.080		0.080
To be well capitalized under prompt corrective action provisions amount	$ 1,161,390,000		$ 1,161,390,000
To be well capitalized under prompt corrective action provisions ratio (as a percent)	0.100		0.100
Tier 1 capital (to RWA)
Actual amount	$ 1,204,446,000		$ 1,204,446,000		$ 1,121,021,000
Actual ratio (as a percent)	0.1037		0.1037		0.0934
For capital adequacy purposes amount	$ 696,883,000		$ 696,883,000		$ 720,142,000
For capital adequacy purposes ratio (as a percent)	0.060		0.060		0.060
To be well capitalized under prompt corrective action provisions amount	$ 696,883,000		$ 696,883,000
To be well capitalized under prompt corrective action provisions ratio (as a percent)	0.060		0.060
Common equity tier 1 (to RWA)
Actual amount	$ 1,174,612,000		$ 1,174,612,000		$ 1,091,353,000
Actual ratio (as a percent)	10.11%		10.11%		9.09%
For capital adequacy purposes amount	$ 522,824,000		$ 522,824,000		$ 540,274,000
For capital adequacy purposes amount (as a percent)	4.50%		4.50%		4.50%
Tier 1 capital (to average assets)
Actual amount	$ 1,204,446,000		$ 1,204,446,000		$ 1,121,021,000
Actual ratio (as a percent)	0.1010		0.1010		0.0982
For capital adequacy purposes amount	$ 477,008,000		$ 477,008,000		$ 456,628,000
For capital adequacy purposes ratio (as a percent)	0.040		0.040		0.040
Dividends paid	$ 10,861,000	$ 10,791,000	$ 32,548,000	$ 31,496,000
Bank's capital conservation buffer (in percent)	0.0473		0.0473		0.0341
Bank
Total capital (to RWA)
Actual amount	$ 1,477,654,000		$ 1,477,654,000		$ 1,368,082,000
Actual ratio (as a percent)	0.1273		0.1273		0.1141
For capital adequacy purposes amount	$ 928,612,000		$ 928,612,000		$ 959,216,000
For capital adequacy purposes ratio (as a percent)	0.080		0.080		0.080
To be well capitalized under prompt corrective action provisions amount	$ 1,160,765,000		$ 1,160,765,000		$ 1,199,020,000
To be well capitalized under prompt corrective action provisions ratio (as a percent)	0.100		0.100		0.100
Tier 1 capital (to RWA)
Actual amount	$ 1,376,779,000		$ 1,376,779,000		$ 1,291,288,000
Actual ratio (as a percent)	0.1186		0.1186		0.1077
For capital adequacy purposes amount	$ 696,516,000		$ 696,516,000		$ 719,381,000
For capital adequacy purposes ratio (as a percent)	0.060		0.060		0.060
To be well capitalized under prompt corrective action provisions amount	$ 928,687,000		$ 928,687,000		$ 959,174,000
To be well capitalized under prompt corrective action provisions ratio (as a percent)	0.080		0.080		0.080
Common equity tier 1 (to RWA)
Actual amount	$ 1,376,779,000		$ 1,376,779,000		$ 1,291,288,000
Actual ratio (as a percent)	11.86%		11.86%		10.77%
For capital adequacy purposes amount	$ 522,387,000		$ 522,387,000		$ 539,535,000
For capital adequacy purposes amount (as a percent)	4.50%		4.50%		4.50%
To be well capitalized under prompt corrective action provisions amount	$ 754,558,000		$ 754,558,000		$ 779,329,000
To be well capitalized under prompt corrective action provisions ratio (as a percent)	6.50%		6.50%		6.50%
Tier 1 capital (to average assets)
Actual amount	$ 1,376,779,000		$ 1,376,779,000		$ 1,291,288,000
Actual ratio (as a percent)	0.1156		0.1156		0.1132
For capital adequacy purposes amount	$ 476,394,000		$ 476,394,000		$ 456,286,000
For capital adequacy purposes ratio (as a percent)	0.040		0.040		0.040
To be well capitalized under prompt corrective action provisions amount	$ 595,493,000		$ 595,493,000		$ 570,357,000
To be well capitalized under prompt corrective action provisions ratio (as a percent)	0.050		0.050		0.050
Dividends paid to Holdco	$ 20,000,000	17,500,000	$ 40,000,000	17,500,000
Veritex Holdings, Inc.
Tier 1 capital (to average assets)
Dividends paid	$ 10,861,000	$ 10,791,000	$ 32,548,000	$ 31,496,000
Dividends paid (in dollars per share) \| $ / shares	$ 0.20	$ 0.20	$ 0.60	$ 0.60

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Held-to-maturity debt securities, fair value	$ 147,836	$ 158,781
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)	60,942,883	60,668,049
Treasury stock (in shares)	6,638,094	6,638,094

Capital Requirements and Restrictions on Retained Earnings

9 Months Ended

Sep. 30, 2023

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.

As a result of our no longer using the Community Bank Leverage Ratio (“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 (“RWA”), 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 September 30, 2023 and December 31, 2022, 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 September 30, 2023 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 Current Expected Credit Losses methodology (“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 PCA Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
As of September 30, 2023
Total capital (to RWA)
Company	$	1,504,000	12.95	%	$	929,112	8.0	%	$	1,161,390	10.0	%
Bank	1,477,654		12.73		928,612		8.0		1,160,765		10.0
Tier 1 capital (to RWA)
Company	1,204,446		10.37		696,883		6.0		696,883		6.0
Bank	1,376,779		11.86		696,516		6.0		928,687		8.0
Common equity tier 1 (to RWA)
Company	1,174,612		10.11		522,824		4.5		n/a		n/a
Bank	1,376,779		11.86		522,387		4.5		754,558		6.5
Tier 1 capital (to average assets)
Company	1,204,446		10.10		477,008		4.0		n/a		n/a
Bank	1,376,779		11.56		476,394		4.0		595,493		5.0
As of December 31, 2022
Total capital (to 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

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 $20,000 and $40,000 were paid by the Bank

to the Holdco during the three and nine months ending September 30, 2023, respectively. Dividends of $17,500 were paid by the Bank to the Holdco during the three and nine months ended September 30, 2022.

Dividends of $10,861, or $0.20 per outstanding share, and $32,548, or $0.60 per outstanding share on the applicable record date, were paid by the Company during the three and nine months ended September 30, 2023, respectively. Dividends of $10,791, or $0.20 per outstanding share, and $31,496, or $0.60 per outstanding share on the applicable record date, were paid by the Company during the three and nine months ended September 30, 2022, respectively.

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 4.73% and 3.41% as of September 30, 2023 and December 31, 2022, respectively.

- 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

Off-Balance Sheet Loan Commitments

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Off-Balance Sheet Loan Commitments

The Company is 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 September 30, 2023 and December 31, 2022:


	September 30,		December 31,
	2023		2022
Commitments to extend credit	$	3,325,075	$	4,511,671
MW commitments	974,941		1,088,558
Standby and commercial letters of credit	101,602		98,179
Total	$	4,401,618	$	5,698,408

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 substantially the same as that involved in making commitments to extend credit.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Beginning balance for ACL on unfunded commitments	$	10,454	$	9,759	$	10,086	$	9,266
(Benefit) provision for credit losses on unfunded commitments	(909)		850		(541)		1,343
Ending balance of ACL on unfunded commitments	$	9,545	$	10,609	$	9,545	$	10,609

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
ASSETS
Cash and due from banks	$ 53,702	$ 60,551
Interest bearing deposits in other banks	659,706	375,526
Total cash and cash equivalents	713,408	436,077
Debt securities available-for-sale (“AFS”), at fair value	879,083	1,096,292
Debt securities held-to-maturity (“HTM”) (fair value of $147,836 and $158,781, at September 30, 2023 and December 31, 2022, respectively)	181,546	186,168
Equity securities	20,713	19,864
Investment in unconsolidated subsidiaries	1,018	1,018
Federal Home Loan Bank of Dallas (“FHLB”) Stock and Federal Reserve Bank (“FRB”) Stock	59,138	101,568
Total investments	1,141,498	1,404,910
Loans held for sale (“LHFS”)	41,313	20,641
Loans held for investment (“LHI”), mortgage warehouse (“MW”)	390,767	446,227
LHI, excluding MW	9,237,447	9,036,424
Less: Allowance for credit losses (“ACL”)	(109,831)	(91,052)
Total LHI, net	9,518,383	9,391,599
Bank-owned life insurance (“BOLI”)	84,867	84,496
Premises and equipment, net	106,118	108,824
Intangible assets, net of accumulated amortization	44,294	53,213
Goodwill	404,452	404,452
Other assets	291,998	250,149
Total assets	12,346,331	12,154,361
Deposits:
Noninterest-bearing deposits	2,363,340	2,640,617
Interest-bearing transaction and savings deposits	3,936,070	3,514,729
Certificates and other time deposits	3,403,427	2,086,642
Correspondent money market deposits	493,681	881,246
Total deposits	10,196,518	9,123,234
Accounts payable and other liabilities	229,116	177,579
Advances from FHLB	200,000	1,175,000
Subordinated debentures and subordinated notes	229,531	228,775
Total liabilities	10,855,165	10,704,588
Stockholders’ equity:
Common stock, $0.01 par value: Authorized shares - 75,000,000 Issued shares - 60,942,883 and 60,668,049 at September 30, 2023 and December 31, 2022, respectively	609	607
Additional paid-in capital (“APIC”)	1,314,459	1,306,852
Retained earnings	451,513	379,299
Accumulated other comprehensive loss (“AOCI”)	(107,833)	(69,403)
Treasury stock, 6,638,094 and 6,638,094 shares at cost at September 30, 2023 and December 31, 2022, respectively	(167,582)	(167,582)
Total stockholders’ equity	1,491,166	1,449,773
Total liabilities and stockholders’ equity	$ 12,346,331	$ 12,154,361

LHI and ACL - Servicing Assets (Details) - USD ($)	3 Months Ended		9 Months Ended
LHI and ACL - Servicing Assets (Details) - USD ($)	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Servicing Asset at Amortized Cost [Line Items]
Servicing asset	$ 577,802,000	$ 509,479,000	$ 577,802,000	$ 509,479,000
Summary of changes in related servicing assets
Balance at beginning of period	14,923,000	15,680,000	14,880,000	17,705,000
Increase from loan sales	90,000	113,000	1,863,000	1,811,000
Servicing asset (net impairment), net recoveries	(455,000)	551,000	407,000	(1,332,000)
Amortization charged as a reduction to income	(1,197,000)	(934,000)	(3,789,000)	(2,774,000)
Balance at end of period	13,361,000	15,410,000	13,361,000	15,410,000
Valuation allowance recorded	(2,043,000)	(1,960,000)	(2,043,000)	(1,960,000)
Proceeds from sale of loans			37,138,000	57,227,000
Gain on sale of loans			67,000	546,000
SBA LHI
Summary of changes in related servicing assets
Proceeds from sale of loans	2,896,000	2,215,000	9,826,000	18,101,000
Gain on sale of loans	243,000	140,000	822,000	803,000
USDA LHI
Summary of changes in related servicing assets
Proceeds from sale of loans	0	0	62,640,000	20,500,000
Gain on sale of loans	0	$ 0	9,663,000	$ 3,708,000
Interest-only strip
Summary of changes in related servicing assets
Interest receivable	$ 0		$ 0		$ 0

Derivative Financial Instruments - AOCI Reclassification (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
(Loss) recognized in other comprehensive income on derivative	$ (11,916)	$ (18,416)	$ (19,872)	$ (43,370)
Gain reclassified from accumulated other comprehensive income into income	(1,120)	1,357	(2,023)	4,350
Interest rate swap on borrowing advances \| Interest Expense \| Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
(Loss) recognized in other comprehensive income on derivative	(1,105)	(1,106)	(3,281)	(2,464)
Gain reclassified from accumulated other comprehensive income into income	1,105	1,106	3,281	2,464
Interest rate swap on money market deposit account payments \| Interest Expense \| Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
(Loss) recognized in other comprehensive income on derivative	(1,751)	5,855	(4,358)	17,567
Gain reclassified from accumulated other comprehensive income into income	3,035	1,124	8,469	1,182
Interest rate swaps, collars and floors on customer loan interest payments \| Interest Income \| Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
(Loss) recognized in other comprehensive income on derivative	(9,060)	(23,165)	(12,233)	(58,473)
Gain reclassified from accumulated other comprehensive income into income	(5,260)	(873)	(13,773)	704
Interest rate swaps, caps and collars \| Non-hedging Derivatives
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Net gain recognized in other noninterest income	$ 180	$ 3,039	$ 1,375	$ 5,165

LHI and ACL - Nonaccrual (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
LHI and ACL - Nonaccrual (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Loans and Allowance for Credit Losses
Nonaccrual	$ 79,394		$ 79,394		$ 43,542
Nonaccrual With No ACL	38,170		38,170		25,275
Financing receivable, nonaccrual, interest income	1,921	$ 434	4,689	$ 1,912
PCD Loans
Loans and Allowance for Credit Losses
Financing receivable, nonaccrual, interest income			7,309		8,545
Commercial
Loans and Allowance for Credit Losses
Nonaccrual	35,106		35,106		11,397
Nonaccrual With No ACL	5,418		5,418		2,521
MW
Loans and Allowance for Credit Losses
Nonaccrual	208		208		0
Nonaccrual With No ACL	0		0		0
Consumer
Loans and Allowance for Credit Losses
Nonaccrual	33		33		169
Nonaccrual With No ACL	33		33		169
1 - 4 family residential \| Residential Real Estate \| Real Estate
Loans and Allowance for Credit Losses
Nonaccrual	900		900		862
Nonaccrual With No ACL	900		900		862
Owner occupied commercial real estate (“OOCRE”) \| Commercial Real Estate \| Real Estate
Loans and Allowance for Credit Losses
Nonaccrual	10,368		10,368		9,737
Nonaccrual With No ACL	10,368		10,368		8,545
Non-owner occupied commercial real estate (“NOOCRE”) \| Commercial Real Estate \| Real Estate
Loans and Allowance for Credit Losses
Nonaccrual	32,779		32,779		21,377
Nonaccrual With No ACL	$ 21,451		$ 21,451		$ 13,178

LHI and ACL

9 Months Ended

Sep. 30, 2023

Receivables [Abstract]

LHI and ACL

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


	September 30, 2023		December 31, 2022
LHI, carried at amortized cost:
Real estate:
Construction and land	$	1,705,053	$	1,787,400
Farmland	59,684		43,500
1 - 4 family residential	933,225		894,456
Multi-family residential	603,395		322,679
Owner occupied commercial real estate (“OOCRE”)	697,299		715,829
Non-owner occupied commercial real estate (“NOOCRE”)	2,398,060		2,341,379
Commercial	2,841,024		2,942,348
MW	390,767		446,227
Consumer	9,845		7,806
	$	9,638,352	$	9,501,624

Deferred loan fees, net	(10,138)		(18,973)
ACL	(109,831)		(91,052)
Total LHI, net	$	9,518,383	$	9,391,599

Included in the total LHI, net, as of September 30, 2023 and December 31, 2022 was an accretable discount related to purchased performing and purchased credit deteriorated (“PCD”) loans acquired in the approximate amounts of $6,012 and $8,260, respectively. The discount is being accreted into income on a level-yield basis over the life of the loans. In addition, included in the net loan portfolio as of September 30, 2023 and December 31, 2022 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 $7,515 and $5,238, respectively.

During the year ended December 31, 2022, the Company purchased $223,924 in pooled residential real estate loans at a net discount, with a remaining balance of $167,847 as of September 30, 2023. The remaining net purchase discount of $3,457 and $4,135 related to these 1-4 family residential loans purchased is included in the total LHI, net, as of September 30, 2023 and December 31, 2022, respectively. No additional pooled residential real estate loans were purchased during the nine months ended September 30, 2023.

ACL

The Company’s estimate of the ACL reflects losses expected over the remaining contractual life of the assets. The activity in the ACL related to LHI is as follows:


	Three Months Ended September 30, 2023
	Construction and Land		Farmland		Residential		Multifamily		OOCRE		NOOCRE		Commercial		MW		Consumer		Total
Balance at beginning of the period	$	18,145	$	170	$	9,209	$	4,707	$	7,519	$	27,875	$	34,197	$	—	$	328	$	102,150
Credit loss expense non-PCD loans	1,304		21		150		133		581		947		5,072		465		57		8,730
Credit (benefit) loss expense PCD loans	—		—		—		—		(6)		797		(9)				—		782
Charge-offs	—		—		—		—		(375)		—		(1,929)				(49)		(2,353)
Recoveries	—		—		—		—		—		200		308				14		522
Ending Balance	$	19,449	$	191	$	9,359	$	4,840	$	7,719	$	29,819	$	37,639	$	465	$	350	$	109,831


	Three Months Ended September 30, 2022
	Construction and Land		Farmland		Residential		Multifamily		OOCRE		NOOCRE		Commercial		Consumer		Total
Balance at beginning of the period	$	10,300	$	145	$	8,056	$	2,186	$	7,609	$	27,772	$	24,374	$	134	$	80,576
Credit (benefit) loss expense non-PCD loans	2,338		(10)		1,126		(59)		1,824		(1,651)		3,426		2,209		9,203
Credit (benefit) loss expense PCD loans	(10)		—		(163)		—		(1,720)		171		(819)		(12)		(2,553)
Charge-offs	—		—		—		—		(1,061)		(838)		(460)		(19)		(2,378)
Recoveries	—		—		4		—		—		3		177		5		189
Ending Balance	$	12,628	$	135	$	9,023	$	2,127	$	6,652	$	25,457	$	26,698	$	2,317	$	85,037


	Nine Months Ended September 30, 2023
	Construction and Land		Farmland		Residential		Multifamily		OOCRE		NOOCRE		Commercial		MW		Consumer		Total
Balance at beginning of the period	$	13,120	$	127	$	9,533	$	2,607	$	8,707	$	26,704	$	30,142	$	—	$	112	$	91,052
Credit (benefit) loss expense non-PCD loans	6,375		64		(169)		2,233		(467)		10,362		13,709		465		375		32,947
(Benefit) credit expense PCD loans	(46)		—		(7)		—		(30)		618		(470)		—		—		65
Charge-offs	—		—		—		—		(491)		(8,215)		(6,520)		—		(203)		(15,429)
Recoveries	—		—		2		—		—		350		778		—		66		1,196
Ending Balance	$	19,449	$	191	$	9,359	$	4,840	$	7,719	$	29,819	$	37,639	$	465	$	350	$	109,831


	Nine Months Ended September 30, 2022
	Construction and Land		Farmland		Residential		Multifamily		OOCRE		NOOCRE		Commercial		Consumer		Total
Balance at beginning of the period	$	7,293	$	187	$	5,982	$	2,664	$	9,215	$	30,548	$	21,632	$	233	$	77,754
Credit (benefit) loss expense non-PCD loans	5,360		(52)		3,269		(537)		2,821		(5,040)		10,538		4,549		20,908
(Benefit) credit loss expense PCD loans	(25)		—		(235)		—		(2,983)		844		(2,083)		(1,276)		(5,758)
Charge-offs	—		—		—		—		(2,646)		(1,391)		(4,282)		(1,244)		(9,563)
Recoveries	—		—		7		—		245		496		893		55		1,696
Ending Balance	$	12,628	$	135	$	9,023	$	2,127	$	6,652	$	25,457	$	26,698	$	2,317	$	85,037

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.

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:


	September 30, 2023					December 31, 2022
		Real Property(1)		ACL Allocation			Real Property(1)		ACL Allocation






OOCRE		$	3,059	$	—		$	1,193	$	129
NOOCRE		32,698		2,000			20,896		2,138
Commercial		2,506		784			1,240		396
Mortgage warehouse		208		208			—		—
Consumer		—		—			15		—
Total		$	38,471	$	2,992		$	23,344	$	2,663

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

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 September 30, 2023 and December 31, 2022, were as follows:


	September 30, 2023				December 31, 2022
	Nonaccrual		Nonaccrual With No ACL			Nonaccrual		Nonaccrual With No ACL



1 - 4 family residential	$	900	$	900		$	862	$	862

OOCRE	10,368		10,368			9,737		8,545
NOOCRE	32,779		21,451			21,377		13,178
Commercial	35,106		5,418			11,397		2,521
MW	208		—			—		—
Consumer	33		33			169		169
Total	$	79,394	$	38,170		$	43,542	$	25,275

There were $7,309 and $8,545 of PCD loans that are not accounted for on a pooled basis included in nonaccrual loans at September 30, 2023 and December 31, 2022, respectively.

During the three and nine months ended September 30, 2023, interest income not recognized on nonaccrual loans was $1,921 and $4,689, respectively. During the three and nine months ended September 30, 2022, interest income not recognized on non-accrual loans was $434 and $1,912, respectively.

An age analysis of past due loans, aggregated by class of loans and including past due nonaccrual loans, as of September 30, 2023 and December 31, 2022, is as follows:


	September 30, 2023
	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)

Construction and land	$	—	$	—	$	—	$	—	$	1,705,053	$	—	$	1,705,053	$	—
Farmland	—		—		—		—		59,684		—		59,684		—
1 - 4 family residential	3,411		3,660		880		7,951		924,161		1,113		933,225		332
Multi-family residential	—		—		—		—		603,395		—		603,395		—
OOCRE	533		—		3,059		3,592		675,799		17,908		697,299		—
NOOCRE	13,413		—		19,061		32,474		2,351,481		14,105		2,398,060		—
Commercial	9,211		—		19,372		28,583		2,809,276		3,165		2,841,024		142
MW	—		—		208		208		390,559		—		390,767		—
Consumer	53		—		3		56		9,774		15		9,845		—
Total	$	26,621	$	3,660	$	42,583	$	72,864	$	9,529,182	$	36,306	$	9,638,352	$	474

(1) Total past due loans includes $13,718 of PCD loans as of September 30, 2023.

(2) Loans 90 days past due and still accruing excludes $448 of PCD loans as of September 30, 2023.


	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	$	1,784,168	$	1,544	$	1,787,400	$	—
Farmland	—		—		—		—		43,500		—		43,500		—
1 - 4 family residential	4,319		129		499		4,947		889,509		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		710,108		19,817		715,829		—
NOOCRE	5,156		—		20,896		26,052		2,315,327		12,748		2,341,379		—
Commercial	3,088		2,188		1,675		6,951		2,935,397		3,701		2,942,348		—
MW	—		—		—		—		446,227		—		446,227		—
Consumer	352		—		45		397		7,409		23		7,806		2
Total	$	18,378	$	5,614	$	24,308	$	48,300	$	9,453,324	$	39,013	$	9,501,624	$	125

(1) Total past due loans includes $13,178 of 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.

There were $474 and $125 loans past due 90 days and still accruing as of September 30, 2023 and December 31, 2022, respectively. These loans are also considered well-secured, and are in the process of collection with plans in place for the borrowers to bring the notes fully current or to subsequently be renewed. The Company believes that it will collect all principal and interest due on each of the loans past due 90 days and still accruing.

Modifications to Borrowers Experiencing Financial Difficulty

The Company adopted Accounting Standards Update (“ASU”) 2022-02, Financial Instruments - Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”) effective January 1, 2023. The amendments in ASU 2022-02 eliminated the recognition and measure of troubled debt restructurings and enhanced disclosures for loan modifications to borrowers experiencing financial difficulty.

An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification. Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses (due to the measurement methodologies used to estimate the allowance), a change to the allowance for credit losses is generally not recorded upon modification.

Loan Modifications Made to Borrowers Experiencing Financial Difficulty

Interest Rate Reduction

Amortized Cost Basis

% of Loan Class

Financial Impact

1-4 Family Residential Rentals1

41,066

4.4

Reduced weighted-average contractual interest rate from floating 7.5% to fixed 6.0%

1 1-4 Family Residential Rentals is included in the 1-4 family residential loan portfolio and is reported as such in accordance with Federal Financial Institutions Examination Council guidelines.


	Term Extension
	Amortized Cost Basis		% of Loan Class		Financial Impact
NOOCRE	$	22,524	0.9	%	Principal and interest deferred over three months
Commercial	26,036		0.9	%	Principal and interest deferred over three months
	$	48,560

No modifications to borrowers in financial difficulty had a payment default during the period and were modified in the 12 months before default to borrowers experiencing financial difficulty.

The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table depicts the performance of loans that have been modified in the last 12 months:


Payment Status
	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due
1-4 Family Residential Rentals	$	41,066	$	—	$	—	$	—
NOOCRE	22,524		—		—		—
Commercial	25,545		—		—		491
Total	$	89,135	$	—	$	—	$	491

The Company has not committed to lend additional amounts to customers with outstanding loans classified as Troubled Loan Modifications as of September 30, 2023 or December 31, 2022.

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 non-accrual.

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 purchased-credit impaired 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
	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
As of September 30, 2023
Construction and land:
Pass	$	57,129	$	674,330	$	543,914	$	159,527	$	3,163	$	12,483	$	179,609	$	—	$	1,630,155
Special mention	23		3,963		8,584		3,450		26,073		—		4,283		—		46,376
Substandard	—		—		3,000		25,522		—		—		—		—		28,522

Total construction and land	$	57,152	$	678,293	$	555,498	$	188,499	$	29,236	$	12,483	$	183,892	$	—	$	1,705,053
Construction and land gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Farmland:
Pass	$	2,544	$	4,426	$	22,156	$	18,133	$	16	$	4,974	$	7,435	$	—	$	59,684



Total farmland	$	2,544	$	4,426	$	22,156	$	18,133	$	16	$	4,974	$	7,435	$	—	$	59,684
Farmland gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


1 - 4 family residential:
Pass	$	54,775	$	142,881	$	197,939	$	83,463	$	38,878	$	277,330	$	112,815	$	17,356	$	925,437
Special mention	3,750		—		—		—		—		312		—		—		4,062
Substandard	—		144		721		—		128		1,090		530		—		2,613
PCD	—		—		—		—		—		1,113		—		—		1,113
Total 1 - 4 family residential	$	58,525	$	143,025	$	198,660	$	83,463	$	39,006	$	279,845	$	113,345	$	17,356	$	933,225
1-4 family residential gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Multi-family residential:
Pass	$	5,644	$	80,058	$	253,708	$	198,048	$	8,140	$	18,922	$	10,099	$	—	$	574,619
Special mention	—		—		—		—		—		26,847		—		—		26,847
Substandard	—		—		—		—		1,929		—		—		—		1,929

Total multi-family residential	$	5,644	$	80,058	$	253,708	$	198,048	$	10,069	$	45,769	$	10,099	$	—	$	603,395
Multi-family residential gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

OOCRE:
Pass	$	61,309	$	159,683	$	110,464	$	91,418	$	41,080	$	172,864	$	3,763	$	—	$	640,581
Special mention	—		9,357		280		715		1,904		7,253		—		—		19,509
Substandard	—		—		1,766		—		—		17,535		—		—		19,301
PCD	—		—		—		—		—		17,908		—		—		17,908


Total OOCRE	$	61,309	$	169,040	$	112,510	$	92,133	$	42,984	$	215,560	$	3,763	$	—	$	697,299
OOCRE gross charge-offs	$	—	$	—	$	—	$	5	$	5	$	481	$	—	$	—	$	491

NOOCRE:
Pass	$	51,793	$	737,112	$	517,516	$	221,135	$	148,648	$	402,355	$	30,138	$	583	$	2,109,280
Special mention	—		3,699		38,981		26,850		41,335		64,806		—		—		175,671
Substandard	—		—		2,744		—		1,259		95,001		—		—		99,004
PCD	—		—		—		—		—		14,105		—		—		14,105
Total NOOCRE	$	51,793	$	740,811	$	559,241	$	247,985	$	191,242	$	576,267	$	30,138	$	583	$	2,398,060
NOOCRE gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	8,215	$	—	$	—	$	8,215

Commercial:
Pass	$	152,357	$	361,010	$	109,578	$	56,193	$	45,114	$	52,493	$	1,966,749	$	519	$	2,744,013
Special mention	—		14,103		650		—		—		9,567		7,664		—		31,984
Substandard	642		16,279		4,600		6,169		6,593		17,037		10,468		74		61,862
PCD	—		—		—		—		—		3,165		—		—		3,165
Total commercial	$	152,999	$	391,392	$	114,828	$	62,362	$	51,707	$	82,262	$	1,984,881	$	593	$	2,841,024
Commercial gross charge-offs	$	—	$	1,854	$	—	$	48	$	479	$	4,139	$	—	$	—	$	6,520

MW:
Pass	$	66,063	$	60,193	$	153	$	147	$	623	$	167	$	263,213	$	—	$	390,559

Substandard	—		—		—		—		—		208		—		—		208

Total MW	$	66,063	$	60,193	$	153	$	147	$	623	$	375	$	263,213	$	—	$	390,767
MW gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Consumer:
Pass	$	4,179	$	1,147	$	304	$	654	$	116	$	1,805	$	1,457	$	—	$	9,662
Special mention	—		—		—		—		—		89		—		—		89
Substandard	—		—		2		—		11		66		—		—		79
PCD	—		—		—		—		—		15		—		—		15
Total consumer	$	4,179	$	1,147	$	306	$	654	$	127	$	1,975	$	1,457	$	—	$	9,845
Consumer gross charge-offs	$	—	$	29	$	—	$	—	$	—	$	174	$	—	$	—	$	203

Total Pass	$	455,793	$	2,220,840	$	1,755,732	$	828,718	$	285,778	$	943,393	$	2,575,278	$	18,458	$	9,083,990
Total Special Mention	3,773		31,122		48,495		31,015		69,312		108,874		11,947		—		304,538
Total Substandard	642		16,423		12,833		31,691		9,920		130,937		10,998		74		213,518
Total PCD	—		—		—		—		—		36,306		—		—		36,306
Total	$	460,208	$	2,268,385	$	1,817,060	$	891,424	$	365,010	$	1,219,510	$	2,598,223	$	18,532	$	9,638,352
Total gross charge-offs	$	—	$	1,883	$	—	$	53	$	484	$	13,009	$	—	$	—	$	15,429

1 Term loans amortized cost basis by origination year excludes $10,138 of deferred loan fees, net.


	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
Substandard	—		—		—		—		—		—		—		—		—
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
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
PCD	—		—		—		—		—		—		—		—		—
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
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		1,954		13,744		—		—		—		15,698
PCD	—		—		—		—		—		—		—		—		—
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	$	90,543	$	83,996	$	40,030	$	31,269	$	1,906,074	$	553	$	2,757,945
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	$	95,732	$	92,734	$	58,642	$	39,699	$	2,026,813	$	630	$	2,942,348

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	$	985,767	$	398,380	$	391,505	$	786,325	$	2,677,207	$	1,884	$	8,983,247
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	$	1,017,699	$	431,810	$	479,768	$	935,168	$	2,849,209	$	2,006	$	9,501,624

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

Servicing Assets

The Company was servicing loans of approximately $577,802 and $509,479 as of September 30, 2023 and 2022, respectively. A summary of the changes in the related servicing assets are as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Balance at beginning of period	$	14,923	$	15,680	$	14,880	$	17,705

Increase from loan sales	90		113		1,863		1,811
Servicing asset (net impairment), net recoveries	(455)		551		407		(1,332)
Amortization charged as a reduction to income	(1,197)		(934)		(3,789)		(2,774)
Balance at end of period	$	13,361	$	15,410	$	13,361	$	15,410

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 September 30, 2023 and 2022 there was a valuation allowance of $2,043 and $1,960, 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 September 30, 2023 and December 31, 2022.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
SBA LHI principal sold	$	2,896	$	2,215	$	9,826	$	18,101
Gain on sale of SBA LHI	243		140		822		803
USDA LHI principal sold	—		—		62,640		20,500
Gain on sale of USDA LHI	—		—		9,663		3,708

LHFS

The following table reflects LHFS.


	September 30, 2023		December 31, 2022
SBA construction and land	$	8,458	$	12,296
1 - 4 family residential	806		866
SBA OOCRE	9,140		5,915
SBA commercial	22,909		1,564
Total LHFS	$	41,313	$	20,641

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Nature of 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 word “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 11 branches in the Houston metropolitan area. The Bank provides a full range of banking services, including commercial and retail lending and the acceptance of checking and savings deposits, to individual and corporate customers. The Texas Department of Banking 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.

Basis of Presentation

The accompanying unaudited consolidated financial statements include the accounts of Veritex Holdings, Inc. and its subsidiaries, including Veritex Community Bank.

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”), but do not include all of the information and footnotes required for complete financial statements. Intercompany transactions and balances are eliminated in consolidation. In management’s opinion, these unaudited consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair statement of the Company’s consolidated balance sheets at September 30, 2023 and December 31, 2022, consolidated statements of income, consolidated statements of comprehensive income (loss) and consolidated changes in stockholders’ equity for the three and nine months ended September 30, 2023 and 2022 and consolidated statements of cash flows for the nine months ended September 30, 2023 and 2022.

Accounting measurements at interim dates inherently involve greater reliance on estimates than at year end and the results for the interim periods shown herein are not necessarily indicative of results to be expected for the full year due in part to global economic and financial market conditions, interest rates, access to sources of liquidity, market competition and interruptions of business processes. These unaudited consolidated financial statements have been prepared in accordance with GAAP for interim financial information and the instructions to Quarterly Reports on Form 10-Q adopted by the Securities and Exchange Commission (“SEC”). These unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2022 included in the Company’s Annual Report on Form 10-K, as filed with the SEC on February 28, 2023.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates and assumptions may also affect disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.

EPS

EPS is based upon the weighted average shares outstanding. The table below sets forth the reconciliation between weighted average shares used for calculating basic and diluted EPS for the three and nine months ended September 30, 2023 and 2022:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Numerator:
Net income	$	32,621	$	43,322	$	104,762	$	106,418
Denominator:
Weighted average shares outstanding for basic EPS	54,300		53,979		54,233		52,886
Dilutive effect of employee stock-based awards	297		654		330		769
Adjusted weighted average shares outstanding	54,597		54,633		54,563		53,655
EPS:
Basic	$	0.60	$	0.80	$	1.93	$	2.01
Diluted	$	0.60	$	0.79	$	1.92	$	1.98

For the three months ended September 30, 2023, there were 1.3 million antidilutive shares excluded from the diluted EPS weighted average shares outstanding, 671 thousand relating to RSUs and 668 thousand relating to stock options. For the nine months ended September 30, 2023, there were 1.3 million antidilutive shares excluded from the diluted EPS weighed average shares outstanding, 645 thousand related to RSUs and 669 thousand relating to stock options.

For the three months ended September 30, 2022, there were 654 thousand antidilutive shares excluded from the diluted EPS weighted average shares outstanding 440 thousand related to RSUs and 214 thousand related to stock options. For the nine months ended September 30, 2022, there were 767 thousand antidilutive shares excluded from the diluted EPS weighed average shares outstanding, 311 thousand related to RSUs and 456 thousand relating to stock options.

Goodwill

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.

During the second quarter of 2023, the Company observed a sustained decline in the market valuation of the Company’s common stock as a result of significant volatility in the banking industry with multiple high-profile bank failures and industry wide concerns related to liquidity, deposit outflows, unrealized securities losses and eroding consumer confidence in the banking system. As a result, the Company performed an interim quantitative impairment test with a trigger date of May 31, 2023. The Company determined the fair value of its reporting unit using a combination of a market and an income approach. Upon completion of the quantitative evaluation, the Company determined that the fair value of the Company's reporting unit exceeded its related carrying value, and therefore goodwill was not impaired. During the third quarter of 2023, the Company evaluated current conditions and concluded there have been no significant changes in the economic environment or projections, and no decline in fair value during the quarter. However, changing economic conditions that may adversely affect the Company's performance, the fair value of its assets and liabilities, or its stock price could result in future impairment, which could adversely affect earnings in future periods. Management will continue to monitor events that could impact this conclusion in the future.

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

LHI and ACL - Allowance for Credit Loss Activity (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Analysis of allowance for loan losses
Beginning balance	$ 102,150	$ 80,576	$ 91,052	$ 77,754
Credit (benefit) loss expense	8,627	6,650	33,012	15,150
Charge-offs	(2,353)	(2,378)	(15,429)	(9,563)
Recoveries	522	189	1,196	1,696
Ending balance	109,831	85,037	109,831	85,037
Non-PCD Loans
Analysis of allowance for loan losses
Credit (benefit) loss expense	8,730	9,203	32,947	20,908
PCD Loans
Analysis of allowance for loan losses
Credit (benefit) loss expense	782	(2,553)	65	(5,758)
Real Estate \| Construction and land
Analysis of allowance for loan losses
Beginning balance	18,145	10,300	13,120	7,293
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Ending balance	19,449	12,628	19,449	12,628
Real Estate \| Construction and land \| Non-PCD Loans
Analysis of allowance for loan losses
Credit (benefit) loss expense	1,304	2,338	6,375	5,360
Real Estate \| Construction and land \| PCD Loans
Analysis of allowance for loan losses
Credit (benefit) loss expense	0	(10)	(46)	(25)
Real Estate \| Farmland
Analysis of allowance for loan losses
Beginning balance	170	145	127	187
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Ending balance	191	135	191	135
Real Estate \| Farmland \| Non-PCD Loans
Analysis of allowance for loan losses
Credit (benefit) loss expense	21	(10)	64	(52)
Real Estate \| Farmland \| PCD Loans
Analysis of allowance for loan losses
Credit (benefit) loss expense	0	0	0	0
Real Estate \| Residential Real Estate \| 1 - 4 family residential
Analysis of allowance for loan losses
Beginning balance	9,209	8,056	9,533	5,982
Charge-offs	0	0	0	0
Recoveries	0	4	2	7
Ending balance	9,359	9,023	9,359	9,023
Real Estate \| Residential Real Estate \| 1 - 4 family residential \| Non-PCD Loans
Analysis of allowance for loan losses
Credit (benefit) loss expense	150	1,126	(169)	3,269
Real Estate \| Residential Real Estate \| 1 - 4 family residential \| PCD Loans
Analysis of allowance for loan losses
Credit (benefit) loss expense	0	(163)	(7)	(235)
Real Estate \| Residential Real Estate \| Multi-family residential
Analysis of allowance for loan losses
Beginning balance	4,707	2,186	2,607	2,664
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Ending balance	4,840	2,127	4,840	2,127
Real Estate \| Residential Real Estate \| Multi-family residential \| Non-PCD Loans
Analysis of allowance for loan losses
Credit (benefit) loss expense	133	(59)	2,233	(537)
Real Estate \| Residential Real Estate \| Multi-family residential \| PCD Loans
Analysis of allowance for loan losses
Credit (benefit) loss expense	0	0	0	0
Real Estate \| Commercial Real Estate \| Owner occupied commercial real estate (“OOCRE”)
Analysis of allowance for loan losses
Beginning balance	7,519	7,609	8,707	9,215
Charge-offs	(375)	(1,061)	(491)	(2,646)
Recoveries	0	0	0	245
Ending balance	7,719	6,652	7,719	6,652
Real Estate \| Commercial Real Estate \| Owner occupied commercial real estate (“OOCRE”) \| Non-PCD Loans
Analysis of allowance for loan losses
Credit (benefit) loss expense	581	1,824	(467)	2,821
Real Estate \| Commercial Real Estate \| Owner occupied commercial real estate (“OOCRE”) \| PCD Loans
Analysis of allowance for loan losses
Credit (benefit) loss expense	(6)	(1,720)	(30)	(2,983)
Real Estate \| Commercial Real Estate \| Non-owner occupied commercial real estate (“NOOCRE”)
Analysis of allowance for loan losses
Beginning balance	27,875	27,772	26,704	30,548
Charge-offs	0	(838)	(8,215)	(1,391)
Recoveries	200	3	350	496
Ending balance	29,819	25,457	29,819	25,457
Real Estate \| Commercial Real Estate \| Non-owner occupied commercial real estate (“NOOCRE”) \| Non-PCD Loans
Analysis of allowance for loan losses
Credit (benefit) loss expense	947	(1,651)	10,362	(5,040)
Real Estate \| Commercial Real Estate \| Non-owner occupied commercial real estate (“NOOCRE”) \| PCD Loans
Analysis of allowance for loan losses
Credit (benefit) loss expense	797	171	618	844
Commercial
Analysis of allowance for loan losses
Beginning balance	34,197	24,374	30,142	21,632
Charge-offs	(1,929)	(460)	(6,520)	(4,282)
Recoveries	308	177	778	893
Ending balance	37,639	26,698	37,639	26,698
Commercial \| Non-PCD Loans
Analysis of allowance for loan losses
Credit (benefit) loss expense	5,072	3,426	13,709	10,538
Commercial \| PCD Loans
Analysis of allowance for loan losses
Credit (benefit) loss expense	(9)	(819)	(470)	(2,083)
MW
Analysis of allowance for loan losses
Beginning balance	0		0
Charge-offs			0
Recoveries			0
Ending balance	465		465
MW \| Non-PCD Loans
Analysis of allowance for loan losses
Credit (benefit) loss expense	465		465
MW \| PCD Loans
Analysis of allowance for loan losses
Credit (benefit) loss expense			0
Consumer
Analysis of allowance for loan losses
Beginning balance	328	134	112	233
Charge-offs	(49)	(19)	(203)	(1,244)
Recoveries	14	5	66	55
Ending balance	350	2,317	350	2,317
Consumer \| Non-PCD Loans
Analysis of allowance for loan losses
Credit (benefit) loss expense	57	2,209	375	4,549
Consumer \| PCD Loans
Analysis of allowance for loan losses
Credit (benefit) loss expense	$ 0	$ (12)	$ 0	$ (1,276)

LHI and ACL - Past Due (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Non-Accrual and Past Due Loans
Loans	$ 9,638,352	$ 9,501,624
Total 90 days past due and still accruing	474	125
PCD
Non-Accrual and Past Due Loans
Loans	36,306	39,013
Total Past Due
Non-Accrual and Past Due Loans
Loans	72,864	48,300
30 to 59 Days
Non-Accrual and Past Due Loans
Loans	26,621	18,378
60 to 89 Days
Non-Accrual and Past Due Loans
Loans	3,660	5,614
90 Days or Greater
Non-Accrual and Past Due Loans
Loans	42,583	24,308
PPP loans excluded		669
Total Current
Non-Accrual and Past Due Loans
Loans	9,529,182	9,453,324
Real Estate \| Construction and land
Non-Accrual and Past Due Loans
Loans	1,705,053	1,787,400
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
Real Estate \| Construction and land \| Total Past Due
Non-Accrual and Past Due Loans
Loans	0	3,232
Real Estate \| Construction and land \| 30 to 59 Days
Non-Accrual and Past Due Loans
Loans	0	1,121
Real Estate \| Construction and land \| 60 to 89 Days
Non-Accrual and Past Due Loans
Loans	0	2,111
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	1,705,053	1,784,168
Real Estate \| Farmland
Non-Accrual and Past Due Loans
Loans	59,684	43,500
Total 90 days past due and still accruing	0	0
Real Estate \| Farmland \| PCD
Non-Accrual and Past Due Loans
Loans		0
Real Estate \| Farmland \| Total Past Due
Non-Accrual and Past Due Loans
Loans	0	0
Real Estate \| Farmland \| 30 to 59 Days
Non-Accrual and Past Due Loans
Loans	0	0
Real Estate \| Farmland \| 60 to 89 Days
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	59,684	43,500
Real Estate \| Residential Real Estate \| 1 - 4 family residential
Non-Accrual and Past Due Loans
Loans	933,225	894,456
Total 90 days past due and still accruing	332	123
Real Estate \| Residential Real Estate \| 1 - 4 family residential \| PCD
Non-Accrual and Past Due Loans
Loans	1,113	1,180
Real Estate \| Residential Real Estate \| 1 - 4 family residential \| Total Past Due
Non-Accrual and Past Due Loans
Loans	7,951	4,947
Real Estate \| Residential Real Estate \| 1 - 4 family residential \| 30 to 59 Days
Non-Accrual and Past Due Loans
Loans	3,411	4,319
Real Estate \| Residential Real Estate \| 1 - 4 family residential \| 60 to 89 Days
Non-Accrual and Past Due Loans
Loans	3,660	129
Real Estate \| Residential Real Estate \| 1 - 4 family residential \| 90 Days or Greater
Non-Accrual and Past Due Loans
Loans	880	499
Real Estate \| Residential Real Estate \| 1 - 4 family residential \| Total Current
Non-Accrual and Past Due Loans
Loans	924,161	889,509
Real Estate \| Residential Real Estate \| Multi-family residential
Non-Accrual and Past Due Loans
Loans	603,395	322,679
Total 90 days past due and still accruing	0	0
Real Estate \| Residential Real Estate \| Multi-family residential \| PCD
Non-Accrual and Past Due Loans
Loans		0
Real Estate \| Residential Real Estate \| Multi-family residential \| Total Past Due
Non-Accrual and Past Due Loans
Loans	0	1,000
Real Estate \| Residential Real Estate \| Multi-family residential \| 30 to 59 Days
Non-Accrual and Past Due Loans
Loans	0	1,000
Real Estate \| Residential Real Estate \| Multi-family residential \| 60 to 89 Days
Non-Accrual and Past Due Loans
Loans	0	0
Real Estate \| Residential Real Estate \| Multi-family residential \| 90 Days or Greater
Non-Accrual and Past Due Loans
Loans	0	0
Real Estate \| Residential Real Estate \| Multi-family residential \| Total Current
Non-Accrual and Past Due Loans
Loans	603,395	321,679
Real Estate \| Commercial Real Estate \| Owner occupied commercial real estate (“OOCRE”)
Non-Accrual and Past Due Loans
Loans	697,299	715,829
Total 90 days past due and still accruing	0	0
Real Estate \| Commercial Real Estate \| Owner occupied commercial real estate (“OOCRE”) \| PCD
Non-Accrual and Past Due Loans
Loans	17,908	19,817
Real Estate \| Commercial Real Estate \| Owner occupied commercial real estate (“OOCRE”) \| Total Past Due
Non-Accrual and Past Due Loans
Loans	3,592	5,721
Real Estate \| Commercial Real Estate \| Owner occupied commercial real estate (“OOCRE”) \| 30 to 59 Days
Non-Accrual and Past Due Loans
Loans	533	3,342
Real Estate \| Commercial Real Estate \| Owner occupied commercial real estate (“OOCRE”) \| 60 to 89 Days
Non-Accrual and Past Due Loans
Loans	0	1,186
Real Estate \| Commercial Real Estate \| Owner occupied commercial real estate (“OOCRE”) \| 90 Days or Greater
Non-Accrual and Past Due Loans
Loans	3,059	1,193
Real Estate \| Commercial Real Estate \| Owner occupied commercial real estate (“OOCRE”) \| Total Current
Non-Accrual and Past Due Loans
Loans	675,799	710,108
Real Estate \| Commercial Real Estate \| Non-owner occupied commercial real estate (“NOOCRE”)
Non-Accrual and Past Due Loans
Loans	2,398,060	2,341,379
Total 90 days past due and still accruing	0	0
Real Estate \| Commercial Real Estate \| Non-owner occupied commercial real estate (“NOOCRE”) \| PCD
Non-Accrual and Past Due Loans
Loans	14,105	12,748
Real Estate \| Commercial Real Estate \| Non-owner occupied commercial real estate (“NOOCRE”) \| Total Past Due
Non-Accrual and Past Due Loans
Loans	32,474	26,052
Real Estate \| Commercial Real Estate \| Non-owner occupied commercial real estate (“NOOCRE”) \| 30 to 59 Days
Non-Accrual and Past Due Loans
Loans	13,413	5,156
Real Estate \| Commercial Real Estate \| Non-owner occupied commercial real estate (“NOOCRE”) \| 60 to 89 Days
Non-Accrual and Past Due Loans
Loans	0	0
Real Estate \| Commercial Real Estate \| Non-owner occupied commercial real estate (“NOOCRE”) \| 90 Days or Greater
Non-Accrual and Past Due Loans
Loans	19,061	20,896
Real Estate \| Commercial Real Estate \| Non-owner occupied commercial real estate (“NOOCRE”) \| Total Current
Non-Accrual and Past Due Loans
Loans	2,351,481	2,315,327
Commercial
Non-Accrual and Past Due Loans
Loans	2,841,024	2,942,348
Total 90 days past due and still accruing	142	0
Commercial \| PCD
Non-Accrual and Past Due Loans
Loans	3,165	3,701
Commercial \| Total Past Due
Non-Accrual and Past Due Loans
Loans	28,583	6,951
Commercial \| 30 to 59 Days
Non-Accrual and Past Due Loans
Loans	9,211	3,088
Commercial \| 60 to 89 Days
Non-Accrual and Past Due Loans
Loans	0	2,188
Commercial \| 90 Days or Greater
Non-Accrual and Past Due Loans
Loans	19,372	1,675
Commercial \| Total Current
Non-Accrual and Past Due Loans
Loans	2,809,276	2,935,397
MW
Non-Accrual and Past Due Loans
Loans	390,767	446,227
Total 90 days past due and still accruing	0	0
MW \| Total Past Due
Non-Accrual and Past Due Loans
Loans	208	0
MW \| 30 to 59 Days
Non-Accrual and Past Due Loans
Loans	0	0
MW \| 60 to 89 Days
Non-Accrual and Past Due Loans
Loans	0	0
MW \| 90 Days or Greater
Non-Accrual and Past Due Loans
Loans	208	0
MW \| Total Current
Non-Accrual and Past Due Loans
Loans	390,559	446,227
Consumer
Non-Accrual and Past Due Loans
Loans	9,845	7,806
Total 90 days past due and still accruing	0	2
Consumer \| PCD
Non-Accrual and Past Due Loans
Loans	15	23
Consumer \| Total Past Due
Non-Accrual and Past Due Loans
Loans	56	397
Consumer \| 30 to 59 Days
Non-Accrual and Past Due Loans
Loans	53	352
Consumer \| 60 to 89 Days
Non-Accrual and Past Due Loans
Loans	0	0
Consumer \| 90 Days or Greater
Non-Accrual and Past Due Loans
Loans	3	45
Consumer \| Total Current
Non-Accrual and Past Due Loans
Loans	9,774	7,409
PCD Loans
Non-Accrual and Past Due Loans
Total 90 days past due and still accruing	13,718	13,178
PCD Loans \| PCD
Non-Accrual and Past Due Loans
Loans	36,306	39,013
PCD Loans \| 90 Days or Greater
Non-Accrual and Past Due Loans
Total 90 days past due and still accruing	448	2,004
PCD Loans \| Real Estate \| Construction and land \| PCD
Non-Accrual and Past Due Loans
Loans	0	1,544
PCD Loans \| Real Estate \| Farmland \| PCD
Non-Accrual and Past Due Loans
Loans	0	0
PCD Loans \| Real Estate \| Residential Real Estate \| 1 - 4 family residential \| PCD
Non-Accrual and Past Due Loans
Loans	1,113	1,180
PCD Loans \| Real Estate \| Residential Real Estate \| Multi-family residential \| PCD
Non-Accrual and Past Due Loans
Loans	0	0
PCD Loans \| Real Estate \| Commercial Real Estate \| Owner occupied commercial real estate (“OOCRE”) \| PCD
Non-Accrual and Past Due Loans
Loans	17,908	19,817
PCD Loans \| Real Estate \| Commercial Real Estate \| Non-owner occupied commercial real estate (“NOOCRE”) \| PCD
Non-Accrual and Past Due Loans
Loans	14,105	12,748
PCD Loans \| Commercial \| PCD
Non-Accrual and Past Due Loans
Loans	3,165	3,701
PCD Loans \| MW \| PCD
Non-Accrual and Past Due Loans
Loans	0	0
PCD Loans \| Consumer \| PCD
Non-Accrual and Past Due Loans
Loans	$ 15	$ 23

Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parenthetical) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Restricted Stock Units
Shares withheld to cover tax withholdings (in shares)	12,354	1,829	86,779	73,463
Employee Stock Options
Shares withheld to cover tax withholdings (in shares)			9,729	28,064
Shares withheld to cover exercise price (in shares)			121	6,905

Income Taxes (Tables)

9 Months Ended

Sep. 30, 2023

Income Tax Disclosure [Abstract]

Schedule of Income Tax Expense

Income tax expense for the three and nine months ended September 30, 2023 and 2022 was as follows:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Income tax expense for the period	$	9,282		$	12,248		$	30,019		$	28,429
Effective tax rate	22.2		%	22.0		%	22.3		%	21.1		%

Stock-Based Awards - 2022 Grant Terms and Stock Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, cliff vesting period (in years)			3 years
2022 Equity Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ 2,471	$ 2,918	$ 7,616	$ 8,266
Veritex (Green) 2014 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ 489	$ 197	$ 1,398	$ 811

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Off-Balance Sheet Loan Commitments - Financial Instruments Approximate Value (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Financial instruments with off-balance sheet risk
Total commitments	$ 4,401,618	$ 5,698,408
Commitments to extend credit
Financial instruments with off-balance sheet risk
Total commitments	3,325,075	4,511,671
MW commitments
Financial instruments with off-balance sheet risk
Total commitments	974,941	1,088,558
Standby and commercial letters of credit
Financial instruments with off-balance sheet risk
Total commitments	$ 101,602	$ 98,179

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
NET INCOME	$ 32,621	$ 43,322	$ 104,762	$ 106,418

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
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-Name Accounting Standards Codification
-Section S99
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Derivative Financial Instruments - Summary of Interest Rate Swaps Outstanding (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Derivative [Line Items]
Notional Amount	$ 3,559,768	$ 2,922,362
Non-hedging Derivatives
Derivative [Line Items]
Notional Amount	2,284,768	1,747,362
Non-hedging Derivatives \| Commercial Customer Counterparty \| Interest rate swaps
Derivative [Line Items]
Notional Amount	$ 877,614	$ 805,311
Maturity (in years)	4 years 3 months 18 days	5 years 1 month 6 days
Fair Value	$ (51,622)	$ (37,183)
Non-hedging Derivatives \| Commercial Customer Counterparty \| Interest rate caps and corridors
Derivative [Line Items]
Notional Amount	$ 264,770	$ 68,370
Maturity (in years)	1 year	1 year 9 months 18 days
Fair Value	$ (2,543)	$ (1,494)
Non-hedging Derivatives \| Commercial Customer Counterparty \| SOFR \| Interest rate caps and corridors
Derivative [Line Items]
Floating Rate	0.00%
Non-hedging Derivatives \| Commercial Customer Counterparty \| Minimum \| Interest rate swaps
Derivative [Line Items]
Fixed Rate	2.41%	2.41%
Non-hedging Derivatives \| Commercial Customer Counterparty \| Minimum \| Interest rate caps and corridors
Derivative [Line Items]
Fixed Rate	3.50%	3.50%
Non-hedging Derivatives \| Commercial Customer Counterparty \| Minimum \| LIBOR \| Interest rate swaps
Derivative [Line Items]
Floating Rate	3.00%	2.80%
Non-hedging Derivatives \| Commercial Customer Counterparty \| Minimum \| LIBOR \| Interest rate caps and corridors
Derivative [Line Items]
Floating Rate		0.00%
Non-hedging Derivatives \| Commercial Customer Counterparty \| Minimum \| Secured Overnight Financing Rate (SOFR) - CME \| Interest rate swaps
Derivative [Line Items]
Floating Rate	0.00%	0.00%
Non-hedging Derivatives \| Commercial Customer Counterparty \| Minimum \| Secured Overnight Financing Rate (SOFR) - CME \| Interest rate caps and corridors
Derivative [Line Items]
Floating Rate	0.00%
Non-hedging Derivatives \| Commercial Customer Counterparty \| Minimum \| Secured Overnight Financing Rate (SOFR) - NYFD \| Interest rate swaps
Derivative [Line Items]
Floating Rate	2.50%	2.50%
Non-hedging Derivatives \| Commercial Customer Counterparty \| Maximum \| Interest rate swaps
Derivative [Line Items]
Fixed Rate	7.37%	8.47%
Non-hedging Derivatives \| Commercial Customer Counterparty \| Maximum \| Interest rate caps and corridors
Derivative [Line Items]
Fixed Rate	7.50%
Non-hedging Derivatives \| Commercial Customer Counterparty \| Maximum \| LIBOR \| Interest rate swaps
Derivative [Line Items]
Floating Rate		5.00%
Non-hedging Derivatives \| Commercial Customer Counterparty \| Maximum \| Secured Overnight Financing Rate (SOFR) - CME \| Interest rate swaps
Derivative [Line Items]
Floating Rate	3.80%	3.80%
Non-hedging Derivatives \| Commercial Customer Counterparty \| Maximum \| Secured Overnight Financing Rate (SOFR) - CME \| Interest rate caps and corridors
Derivative [Line Items]
Floating Rate	2.50%
Non-hedging Derivatives \| Commercial Customer Counterparty \| Maximum \| Secured Overnight Financing Rate (SOFR) - NYFD \| Interest rate swaps
Derivative [Line Items]
Floating Rate	3.00%	3.00%
Non-hedging Derivatives \| Financial Institution Counterparty \| Interest rate swaps
Derivative [Line Items]
Notional Amount	$ 877,614	$ 805,311
Maturity (in years)	4 years 3 months 18 days	5 years 1 month 6 days
Fair Value	$ 51,898	$ 37,713
Non-hedging Derivatives \| Financial Institution Counterparty \| Interest rate caps and corridors
Derivative [Line Items]
Notional Amount	$ 264,770	$ 68,370
Maturity (in years)	1 year	1 year 9 months 18 days
Fair Value	$ 2,543	$ 1,494
Non-hedging Derivatives \| Financial Institution Counterparty \| SOFR \| Interest rate caps and corridors
Derivative [Line Items]
Floating Rate	0.00%
Non-hedging Derivatives \| Financial Institution Counterparty \| Minimum \| Interest rate swaps
Derivative [Line Items]
Fixed Rate	2.41%	2.41%
Non-hedging Derivatives \| Financial Institution Counterparty \| Minimum \| Interest rate caps and corridors
Derivative [Line Items]
Fixed Rate	3.50%	3.50%
Non-hedging Derivatives \| Financial Institution Counterparty \| Minimum \| LIBOR \| Interest rate swaps
Derivative [Line Items]
Floating Rate	3.00%	2.80%
Non-hedging Derivatives \| Financial Institution Counterparty \| Minimum \| LIBOR \| Interest rate caps and corridors
Derivative [Line Items]
Floating Rate		0.00%
Non-hedging Derivatives \| Financial Institution Counterparty \| Minimum \| Secured Overnight Financing Rate (SOFR) - CME \| Interest rate swaps
Derivative [Line Items]
Floating Rate	0.00%	0.00%
Non-hedging Derivatives \| Financial Institution Counterparty \| Minimum \| Secured Overnight Financing Rate (SOFR) - CME \| Interest rate caps and corridors
Derivative [Line Items]
Floating Rate	0.00%
Non-hedging Derivatives \| Financial Institution Counterparty \| Minimum \| Secured Overnight Financing Rate (SOFR) - NYFD \| Interest rate swaps
Derivative [Line Items]
Floating Rate	2.50%	2.50%
Non-hedging Derivatives \| Financial Institution Counterparty \| Maximum \| Interest rate swaps
Derivative [Line Items]
Fixed Rate	7.37%	8.47%
Non-hedging Derivatives \| Financial Institution Counterparty \| Maximum \| Interest rate caps and corridors
Derivative [Line Items]
Fixed Rate	7.50%
Non-hedging Derivatives \| Financial Institution Counterparty \| Maximum \| LIBOR \| Interest rate swaps
Derivative [Line Items]
Floating Rate		5.00%
Non-hedging Derivatives \| Financial Institution Counterparty \| Maximum \| Secured Overnight Financing Rate (SOFR) - CME \| Interest rate swaps
Derivative [Line Items]
Floating Rate	3.80%	3.80%
Non-hedging Derivatives \| Financial Institution Counterparty \| Maximum \| Secured Overnight Financing Rate (SOFR) - CME \| Interest rate caps and corridors
Derivative [Line Items]
Floating Rate	2.50%
Non-hedging Derivatives \| Financial Institution Counterparty \| Maximum \| Secured Overnight Financing Rate (SOFR) - NYFD \| Interest rate swaps
Derivative [Line Items]
Floating Rate	3.00%	3.00%

Securities - Narrative (Details) $ in Thousands	Sep. 30, 2023 USD ($) investment	Dec. 31, 2022 USD ($) investment	Jan. 01, 2022 USD ($) Security
Investments, Debt and Equity Securities [Abstract]
Number of AFS positions elected for transfer \| Security			25
Aggregate fair value of AFS transferred			$ 117,001
Net unrealized holding gain	$ 3,290	$ 3,790
Number of investment positions in an unrealized loss position \| investment	148	175

Stock-Based Awards - 2022 Equity Plan - Options (Details) $ / shares in Units, $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2023 USD ($) $ / shares shares	Sep. 30, 2022 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares
Shares Underlying Options
Options exercisable at end of period (in shares) \| shares	0	1,000
Weighted Exercise Price
Options exercisable at end of period (in dollars per share) \| $ / shares	$ 0	$ 10.43
Weighted Average Contractual Term
Exercisable (in years)		1 year 25 days
Aggregate Intrinsic Value
Exercisable \| $	$ 0
Non-Performance Based Stock Options
Shares Underlying Options
Outstanding at the end of period (in shares) \| shares		1,000
Weighted Exercise Price
Outstanding at the end of period (in dollars per share) \| $ / shares		$ 10.43
Weighted Average Contractual Term
Outstanding (in years)		1 year 25 days
2022 Equity Plan \| Non-Performance Based Stock Options
Shares Underlying Options
Outstanding at beginning of period (in shares) \| shares	657,494	710,043	710,043
Granted (in shares) \| shares		1,500
Exercised (in shares) \| shares	(17,285)	(44,049)
Forfeited (in shares) \| shares	(1,666)
Cancelled (in shares) \| shares	(3,804)
Outstanding at the end of period (in shares) \| shares	634,739	667,494	657,494
Options exercisable at end of period (in shares) \| shares	608,739	541,650
Weighted Exercise Price
Outstanding at beginning of period (in dollars per share) \| $ / shares	$ 24.47	$ 24.38	$ 24.38
Granted (in dollars per share) \| $ / shares		31.26
Exercised (in dollars per share) \| $ / shares	18.29	23.21
Forfeited (in dollars per share) \| $ / shares	17.38
Cancelled (in dollars per share) \| $ / shares	29.13
Outstanding at the end of period (in dollars per share) \| $ / shares	24.63	24.47	$ 24.47
Options exercisable at end of period (in dollars per share) \| $ / shares	$ 24.79	$ 24.57
Weighted Average Contractual Term
Outstanding (in years)	4 years 10 months 2 days	6 years 2 months 8 days
Exercisable (in years)	4 years 9 months 10 days	5 years 11 months 4 days
Aggregate Intrinsic Value
Outstanding \| $	$ 97
Exercisable \| $	97
Unrecognized compensation expense \| $	$ 36	$ 327	$ 172
Requisite service period to recognize compensation cost (in years)	3 days

Stock-Based Awards - Green Bancorp Inc. 2010 Option Plan (Details) - Non-Performance Based Stock Options - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Shares Underlying Options
Outstanding at the end of period (in shares)		1,000
Weighted Exercise Price
Outstanding at the end of period (in dollars per share)		$ 10.43
Weighted Average Contractual Term
Outstanding (in years)		1 year 25 days
Green Bancorp Inc. 2010 Stock Option Plan
Shares Underlying Options
Outstanding at beginning of period (in shares)	43,162	66,143	66,143
Cancelled (in shares)		(21,235)
Exercised (in shares)	(32,378)	(1,746)
Outstanding at the end of period (in shares)	10,784	43,162	43,162
Weighted Exercise Price
Outstanding at beginning of period (in dollars per share)	$ 13.11	$ 12.56	$ 12.56
Cancelled (in dollars per share)		11.40
Exercised (in dollars per share)	13.26	13.20
Outstanding at the end of period (in dollars per share)	$ 12.65	$ 13.11	$ 13.11
Weighted Average Contractual Term
Outstanding (in years)	4 years 3 months 25 days	2 years 3 months 18 days
Aggregate Intrinsic Value
Outstanding	$ 57
Non-performance-based stock options exercised	$ 379	$ 55

Securities - Securities (Details) - USD ($)	3 Months Ended		9 Months Ended
Securities - Securities (Details) - USD ($)	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]
Equity securities	$ 9,457,000		$ 9,457,000		$ 9,792,000
Realized gain (loss) on equity securities	0	$ 0	0	$ 0
Unrealized loss recognized on equity securities with a readily determinable fair value	(304,000)	(429,000)	(335,000)	(1,299,000)
Equity securities without a readily determinable fair value	11,256,000		11,256,000		$ 10,072,000
Securities purchased under agreements to resell	0	0	0	0
Interest income, securities purchased under agreements to resell	$ 0	$ 801,000	$ 0	$ 1,386,000

Fair Value - Non-recurring Basis (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022
Assets measured at fair value
Valuation allowance recorded	$ 2,043,000		$ 1,960,000
Non-recurring
Assets measured at fair value
Collateral dependent loans with an ACL	11,050,000	$ 7,969,000
Servicing assets with a valuation allowance	7,088,000	10,984,000
Collateral dependent loans with an ACL, gross	14,042,000	10,632,000
Impaired loans, specific allowance	2,992,000	2,663,000
Servicing asset at fair value, gross	9,132,000	13,435,000
Valuation allowance for servicing asset		2,451,000
Liabilities measured at fair value	0	0
Non-recurring \| Level 1 Inputs
Assets measured at fair value
Collateral dependent loans with an ACL	0	0
Servicing assets with a valuation allowance	0	0
Non-recurring \| Level 2 Inputs
Assets measured at fair value
Collateral dependent loans with an ACL	0	0
Servicing assets with a valuation allowance	0	0
Non-recurring \| Level 3 Inputs
Assets measured at fair value
Collateral dependent loans with an ACL	11,050,000	7,969,000
Servicing assets with a valuation allowance	$ 7,088,000	$ 10,984,000

Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Numerator:
Net income	$ 32,621	$ 43,322	$ 104,762	$ 106,418
Denominator:
Weighted average shares outstanding for basic EPS (in shares)	54,300	53,979	54,233	52,886
Dilutive effect of employee stock based awards (in shares)	297	654	330	769
Adjusted weighted average shares outstanding (in shares)	54,597	54,633	54,563	53,655
EPS:
Basic (in dollars per share)	$ 0.60	$ 0.80	$ 1.93	$ 2.01
Diluted (in dollars per share)	$ 0.60	$ 0.79	$ 1.92	$ 1.98

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

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+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

LHI and ACL - Collateral Dependent Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Servicing Asset at Amortized Cost [Line Items]
Loans	$ 9,638,352		$ 9,501,624
ACL Allocation	109,831	$ 102,150	91,052	$ 85,037	$ 80,576	$ 77,754
Real Estate \| Commercial Real Estate \| Owner occupied commercial real estate (“OOCRE”)
Servicing Asset at Amortized Cost [Line Items]
Loans	697,299		715,829
ACL Allocation	7,719	7,519	8,707	6,652	7,609	9,215
Real Estate \| Commercial Real Estate \| Non-owner occupied commercial real estate (“NOOCRE”)
Servicing Asset at Amortized Cost [Line Items]
Loans	2,398,060		2,341,379
ACL Allocation	29,819	27,875	26,704	25,457	27,772	30,548
Commercial
Servicing Asset at Amortized Cost [Line Items]
Loans	2,841,024		2,942,348
ACL Allocation	37,639	34,197	30,142	26,698	24,374	21,632
Mortgage warehouse
Servicing Asset at Amortized Cost [Line Items]
ACL Allocation	465	0	0
Consumer
Servicing Asset at Amortized Cost [Line Items]
Loans	9,845		7,806
ACL Allocation	350	$ 328	112	$ 2,317	$ 134	$ 233
Real Property
Servicing Asset at Amortized Cost [Line Items]
Loans	38,471		23,344
Real Property \| Real Estate \| Commercial Real Estate \| Owner occupied commercial real estate (“OOCRE”)
Servicing Asset at Amortized Cost [Line Items]
Loans	3,059		1,193
Real Property \| Real Estate \| Commercial Real Estate \| Non-owner occupied commercial real estate (“NOOCRE”)
Servicing Asset at Amortized Cost [Line Items]
Loans	32,698		20,896
Real Property \| Commercial
Servicing Asset at Amortized Cost [Line Items]
Loans	2,506		1,240
Real Property \| Mortgage warehouse
Servicing Asset at Amortized Cost [Line Items]
Loans	208		0
Real Property \| Consumer
Servicing Asset at Amortized Cost [Line Items]
Loans	0		15
ACL Allocation
Servicing Asset at Amortized Cost [Line Items]
ACL Allocation	2,992		2,663
ACL Allocation \| Real Estate \| Commercial Real Estate \| Owner occupied commercial real estate (“OOCRE”)
Servicing Asset at Amortized Cost [Line Items]
ACL Allocation	0		129
ACL Allocation \| Real Estate \| Commercial Real Estate \| Non-owner occupied commercial real estate (“NOOCRE”)
Servicing Asset at Amortized Cost [Line Items]
ACL Allocation	2,000		2,138
ACL Allocation \| Commercial
Servicing Asset at Amortized Cost [Line Items]
ACL Allocation	784		396
ACL Allocation \| Mortgage warehouse
Servicing Asset at Amortized Cost [Line Items]
ACL Allocation	208		0
ACL Allocation \| Consumer
Servicing Asset at Amortized Cost [Line Items]
ACL Allocation	$ 0		$ 0