DALLAS, July 18, 2025 (GLOBE NEWSWIRE) --  Veritex Holdings, Inc. (“Veritex”, the “Company”, “we” or “our”) (Nasdaq: VBTX), the holding company for Veritex Community Bank, today announced the results for the quarter ended June 30, 2025.

The Company also announced that the Board of Directors declared a quarterly cash dividend of $0.22 per share of common stock. The dividend will be payable on August 21, 2025 to shareholders of record as of the close of business on August 7, 2025.

Quarter to Date
Financial Highlights Q2 2025 Q1 2025 Q2 2024
(Dollars in thousands, except per share data)
(unaudited)
GAAP
Net income $ 30,906 $ 29,070 $ 27,202
Diluted EPS 0.56 0.53 0.50
Book value per common share 30.39 30.08 28.49
Return on average assets 1 1.00 % 0.94 % 0.87 %
Return on average equity 1 7.56 7.27 7.10
Net interest margin 3.33 3.31 3.29
Efficiency ratio 61.15 60.91 59.11
Non-GAAP 2
Operating earnings $ 30,906 $ 29,707 $ 28,310
Diluted operating EPS 0.56 0.54 0.52
Tangible book value per common share 22.68 22.33 20.62
Pre-tax, pre-provision operating earnings 42,672 43,413 44,420
Pre-tax, pre-provision operating return on average assets 1 1.38 % 1.41 % 1.42 %
Pre-tax, pre-provision operating return on average loans 1 1.82 1.89 1.83
Operating return on average assets 1 1.00 0.96 0.91
Return on average tangible common equity 1 10.79 10.49 10.54
Operating return on average tangible common equity 1 10.79 10.70 10.94
Operating efficiency ratio 61.15 60.62 58.41

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

Other Second Quarter Credit, Capital and Company Highlights

  • Credit quality remained strong with a nonperforming assets (“NPAs”) to total assets ratio of 0.60% and annualized net charge-offs of 0.05% for the quarter and 0.11% year-to-date;
  • Allowance for Credit Losses (“ACL”) to total loans held-for-investment ratio (excluding mortgage warehouse (“MW”)) remained relatively unchanged at 1.28%;
  • Capital remains strong with common equity Tier 1 capital ratio of 11.05% as of June 30, 2025;
  • Book value per share increased $0.31 to $30.39 and tangible book value per share increased $0.35 to $22.68;
  • We repurchased 286,291 and 663,637 shares of Company stock for $7.1 million and $16.6 million during the second quarter and year-to-date, respectively; and
  • On July 14, 2025, we announced entry into a definitive agreement to merge with Huntington Bancshares Incorporated ("Huntington"), which is expected to close in the fourth quarter of 2025, subject to regulatory approvals and customary closing conditions.

Results of Operations for the Three Months Ended June 30, 2025

Net Interest Income

For the three months ended June 30, 2025, net interest income before provision for credit losses was $96.3 million and net interest margin (“NIM”) was 3.33% compared to $95.4 million and 3.31%, respectively, for the three months ended March 31, 2025. The $894 thousand increase, or 0.9%, in net interest income before provision for credit losses was primarily due to a $2.8 million increase in interest income on loans, a $1.7 million decrease in interest expense on certificates and other time deposits and a $768 thousand decrease in subordinated debentures and subordinated notes, partially offset by a $2.9 million increase in interest expense on transaction and savings deposits and a $1.2 million decrease in interest income on deposits in financial institutions and fed funds sold for the three months ended June 30, 2025, compared to the three months ended March 31, 2025. The NIM increased two basis points (bps) compared to the three months ended March 31, 2025, primarily due to the decreased funding costs on certificates and other time deposits and subordinated debt due to the redemption of $75.0 million in subordinated debt during the three months ended March 31, 2025 as well as a mix shift from lower yielding to higher yielding assets for the three months ended June 30, 2025. The increase was largely offset by higher deposits funding costs primarily driven by the expiration of favorable hedges on money market deposit accounts at the end of the first quarter 2025.

Compared to the three months ended June 30, 2024, net interest income before provision for credit losses for the three months ended June 30, 2025 was relatively unchanged. Net interest income benefited from decreases in interest expense of $16.3 million on certificates and other time deposits, $1.4 million on advances from the Federal Home Loan Bank (“FHLB”) and $1.1 million on subordinated debentures and subordinated notes, as well as an increase of $1.5 million in interest income on debt securities. These changes were substantially offset by a decrease of $17.6 million in interest income on loans and a $2.5 million increase in interest expense on interest-bearing demand and savings deposits. The NIM increased four bps from 3.29% for the three months ended June 30, 2024 to 3.33% for the three months ended June 30, 2025. The increase was primarily due to decreased funding costs on deposits, advances and subordinated debt resulting from interest rate cuts for the year over year period, partially offset by the related declines in rates earned on interest-earnings assets, primarily loans.

Noninterest Income

Noninterest income for the three months ended June 30, 2025 was $13.5 million, a decrease of $790 thousand, or 5.5%, compared to the three months ended March 31, 2025. The change was primarily due to a $1.6 million decrease in government guaranteed loan income, partially offset by an $850 thousand increase in customer swap income during the period.

Compared to the three months ended June 30, 2024, noninterest income for the three months ended June 30, 2025 increased by $2.9 million, or 27.6%. The increase was primarily due to a $1.2 million increase in customer swap income, a $728 thousand increase in service charges and fees on deposit accounts, a $528 thousand increase in loan fees and a $368 thousand increase in government guaranteed loan income for the year over year period.

Noninterest Expense

Noninterest expense was $67.2 million for the three months ended June 30, 2025, compared to $66.8 million for the three months ended March 31, 2025, an increase of $328 thousand, or 0.5%. The increase was primarily due to a $920 thousand increase in other noninterest expense, a $627 thousand increase in professional and regulatory fees and a $580 thousand increase in marketing expenses compared to the three months ended March 31, 2025. The increase was largely offset by a $1.7 million decrease in salaries and employee benefits primarily due to $733 thousand in lower payroll taxes, which are historically higher in the first quarter, as well as decreases of $678 thousand in bonus expense, $370 thousand in employee insurance expense and $340 thousand in stock grant expenses, offset partially by a $1.0 million increase in salaries expense. In addition, deferred loan origination costs, which reduce salaries expense, were $399 thousand higher for the three months ended June 30, 2025.

Compared to the three months ended June 30, 2024, noninterest expense for the three months ended June 30, 2025 increased by $4.0 million, or 6.4%. The increase was primarily due to a $2.2 million increase in salaries and employee benefits driven by a $4.7 million increase in salaries expense and incentives accruals and a $521 thousand increase in payroll taxes, offset by decreases of $1.1 million in stock grant expense and $661 thousand in severance expense, as well as $1.6 million higher deferred loan origination costs, which reduces salaries and employee benefit expense. Additionally, there was a $1.1 million increase in other noninterest expense, driven primarily by higher OREO expenses, and a $636 thousand increase in marketing expenses during the three months ended June 30, 2025, compared to the same period in the prior year.

Income Tax

Income tax expense for the three months ended June 30, 2025 totaled $8.5 million, which is consistent with the amount recorded for the three months ended March 31, 2025. The Company’s effective tax rate was approximately 21.6% for the three months ended June 30, 2025 compared to 22.7% for the three months ended March 31, 2025.

Compared to the three months ended June 30, 2024, income tax expense increased by $295 thousand, or 3.6%, compared to the three months ended June 30, 2025. The Company’s effective tax rate was approximately 23.2% for the three months ended June 30, 2024.

Financial Condition

Total loans held for investment (“LHI”), excluding MW was $8.78 billion at June 30, 2025, a decrease of $44.7 million compared to March 31, 2025.

Total deposits were $10.42 billion at June 30, 2025, a decrease of $247.2 million compared to March 31, 2025. The decrease was primarily the result of decreases of $185.4 million in noninterest bearing deposits and $171.4 million in interest-bearing transaction and savings deposits, partially offset by an increase of $113.5 million in certificates and other time deposits.

Credit Quality

NPAs totaled $75.2 million, or 0.60% of total assets, of which $66.0 million represented LHI and $9.2 million represented OREO at June 30, 2025, compared to $96.9 million, or 0.77% of total assets, at March 31, 2025. The Company had net charge-offs of $1.3 million for the three months ended June 30, 2025. Annualized net charge-offs to average loans outstanding were five bps for the three months ended June 30, 2025, compared to 17 bps and 28 bps for the three months ended March 31, 2025 and June 30, 2024, respectively.

ACL as a percentage of LHI was 1.19% at both June 30, 2025 and March 31, 2025 and 1.16% at June 30, 2024. ACL as a percentage of LHI (excluding MW) was 1.28% at June 30, 2025, 1.27% at March 31, 2025 and 1.23% at June 30, 2024. The Company recorded a provision for credit losses on loans of $1.8 million, $4.0 million and $8.3 million for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024, respectively. The provision for credit losses for the three months ended June 30, 2025 was primarily attributable to changes in economic factors for the period. The balance for unfunded commitments increased to $8.9 million as of June 30, 2025, compared to $7.4 million at March 31, 2025, and we recorded a $1.5 million provision for unfunded commitments for the three months ended June 30, 2025, compared to a $1.3 million provision for unfunded commitments for the three months ended March 31, 2025 and no provision recorded for unfunded commitments for the three months ended June 30, 2024. The increase in the allowance for unfunded commitments was attributable to increases in unfunded balances and changes in economic factors for the period.

Dividend Information

On July 18, 2025, Veritex’s Board of Directors declared a quarterly cash dividend of $0.22 per share on its outstanding shares of common stock. The dividend will be paid on or after August 21, 2025 to stockholders of record as of the close of business on August 7, 2025.

Non-GAAP Financial Measures

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

About Veritex Holdings, Inc.

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


CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This communication may contain certain forward-looking statements, including, but not limited to, certain plans, expectations, goals, projections, and statements about the benefits of the proposed transaction, the plans, objectives, expectations and intentions of Veritex and Huntington, the expected timing of completion of the transaction, and other statements that are not historical facts and are subject to numerous assumptions, risks, and uncertainties that are beyond the control of Veritex and Huntington. Such statements are subject to numerous assumptions, risks, estimates, uncertainties and other important factors that change over time and could cause actual results to differ materially from any results, performance, or events expressed or implied by such forward-looking statements, including as a result of the factors referenced below. Statements that do not describe historical or current facts, including statements about beliefs and expectations, are forward-looking statements. Forward-looking statements may be identified by words such as expect, anticipate, continue, believe, intend, estimate, plan, trend, objective, target, goal, or similar expressions, or future or conditional verbs such as will, may, might, should, would, could, or similar variations. The forward-looking statements are intended to be subject to the safe harbor provided by Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995.

Veritex and Huntington caution that the forward-looking statements in this communication are not guarantees of future performance and involve a number of known and unknown risks, uncertainties and assumptions that are difficult to assess and are subject to change based on factors which are, in many instances, beyond Veritex’s and Huntington’s control. While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors which could cause actual results to differ materially from those contained or implied in the forward-looking statements or historical performance: changes in general economic, political, or industry conditions; deterioration in business and economic conditions, including persistent inflation, supply chain issues or labor shortages, instability in global economic conditions and geopolitical matters, as well as volatility in financial markets; changes in U.S. trade policies, including the imposition of tariffs and retaliatory tariffs; the impact of pandemics and other catastrophic events or disasters on the global economy and financial market conditions and our business, results of operations, and financial condition; the impacts related to or resulting from bank failures and other volatility, including potential increased regulatory requirements and costs, such as FDIC special assessments, long-term debt requirements and heightened capital requirements, and potential impacts to macroeconomic conditions, which could affect the ability of depository institutions, including us, to attract and retain depositors and to borrow or raise capital; unexpected outflows of uninsured deposits which may require us to sell investment securities at a loss; changing interest rates which could negatively impact the value of our portfolio of investment securities; the loss of value of our investment portfolio which could negatively impact market perceptions of us and could lead to deposit withdrawals; the effects of social media on market perceptions of us and banks generally; cybersecurity risks; uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Federal Reserve; volatility and disruptions in global capital, foreign exchange and credit markets; movements in interest rates; competitive pressures on product pricing and services; success, impact, and timing of our business strategies, including market acceptance of any new products or services including those implementing our “Fair Play” banking philosophy; changes in policies and standards for regulatory review of bank mergers; the nature, extent, timing, and results of governmental actions, examinations, reviews, reforms, regulations, and interpretations, including those related to the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Basel III regulatory capital reforms, as well as those involving the SEC, OCC, Federal Reserve, FDIC, CFPB and state-level regulators; the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement between Veritex and Huntington; the outcome of any legal proceedings that may be instituted against Veritex and Huntington; delays in completing the transaction; the failure to obtain necessary regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the transaction); the failure to obtain Veritex shareholder approval or to satisfy any of the other conditions to the transaction on a timely basis or at all; the possibility that the anticipated benefits of the transaction are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where Veritex and Huntington do business; the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; diversion of management’s attention from ongoing business operations and opportunities; potential adverse reactions or changes to business, customer or employee relationships, including those resulting from the announcement or completion of the transaction; the ability to complete the transaction and integration of Veritex and Huntington successfully; the dilution caused by Huntington’s issuance of additional shares of its capital stock in connection with the transaction; and other factors that may affect the future results of Veritex and Huntington. Additional factors that could cause results to differ materially from those described above can be found in Veritex’s Annual Report on Form 10-K for the year ended December 31, 2024 and in its subsequent Quarterly Reports on Form 10-Q, including for the quarter ended March 31, 2025, each of which is on file with the SEC and available on Veritex’s investor relations website, ir.veritexbank.com , under the heading “Financials” and in other documents Veritex files with the SEC, and in Huntington’s Annual Report on Form 10-K for the year ended December 31, 2024 and in its subsequent Quarterly Reports on Form 10-Q, including for the quarter ended March 31, 2025, each of which is on file with the Securities and Exchange Commission (the “SEC”) and available in the “Investor Relations” section of Huntington’s website, http://www.huntington.com, under the heading “Investor Relations” and in other documents Huntington files with the SEC.

All forward-looking statements are expressly qualified in their entirety by the cautionary statements set forth above. Forward-looking statements speak only as of the date they are made and are based on information available at that time. Neither Veritex nor Huntington assume any obligation to update forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in circumstances or other factors affecting forward-looking statements that occur after the date the forward-looking statements were made or to reflect the occurrence of unanticipated events except as required by federal securities laws. If Veritex or Huntington update one or more forward-looking statements, no inference should be drawn that Veritex or Huntington will make additional updates with respect to those or other forward-looking statements. As forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements.


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

For the Quarter Ended For the Six Months Ended
Jun 30,
2025 		Mar 31,
2025 		Dec 31,
2024 		Sep 30,
2024 		Jun 30,
2024 		Jun 30,
2025 		Jun 30,
2024
(Dollars and shares in thousands, except per share data)
Per Share Data (Common Stock):
Basic EPS $ 0.57 $ 0.53 $ 0.46 $ 0.57 $ 0.50 $ 1.10 $ 0.94
Diluted EPS 0.56 0.53 0.45 0.56 0.50 1.09 0.94
Book value per common share 30.39 30.08 29.37 29.53 28.49 30.39 28.49
Tangible book value per common share 1 22.68 22.33 21.61 21.72 20.62 22.68 20.62
Dividends paid per common share outstanding 2 0.22 0.22 0.20 0.20 0.20 0.44 0.40
Common Stock Data:
Shares outstanding at period end 54,265 54,297 54,517 54,446 54,350 54,265 54,350
Weighted average basic shares outstanding for the period 54,251 54,486 54,489 54,409 54,457 54,368 54,451
Weighted average diluted shares outstanding for the period 54,766 55,123 55,237 54,932 54,823 54,944 54,832
Summary of Credit Ratios:
ACL to total LHI 1.19 % 1.19 % 1.18 % 1.21 % 1.16 % 1.19 % 1.16 %
NPAs to total assets 0.60 0.77 0.62 0.52 0.65 0.60 0.65
NPAs, excluding nonaccrual purchase credit deteriorated (“PCD”) loans, to total assets 3 0.60 0.77 0.62 0.52 0.65 0.60 0.65
NPAs to total loans and OREO 0.79 1.03 0.83 0.70 0.85 0.79 0.85
Net charge-offs to average loans outstanding 3 0.05 0.17 0.32 0.01 0.28 0.11 0.25
Summary Performance Ratios:
Return on average assets 3 1.00 % 0.94 % 0.78 % 0.96 % 0.87 % 0.97 % 0.83 %
Return on average equity 3 7.56 7.27 6.17 7.79 7.10 7.42 6.72
Return on average tangible common equity 1, 3 10.79 10.49 9.04 11.33 10.54 10.64 10.03
Efficiency ratio 61.15 60.91 67.04 61.94 59.11 61.03 60.72
Net interest margin 3.33 3.31 3.20 3.30 3.29 3.32 3.27
Selected Performance Metrics - Operating:
Diluted operating EPS 1 $ 0.56 $ 0.54 $ 0.54 $ 0.59 $ 0.52 $ 1.10 $ 1.05
Pre-tax, pre-provision operating return on average assets 1, 3 1.38 % 1.41 % 1.28 % 1.38 % 1.42 % 1.39 % 1.42 %
Pre-tax, pre-provision operating return on average loans 1, 3 1.82 1.89 1.72 1.83 1.83 1.86 1.83
Operating return on average assets 1,3 1.00 0.96 0.93 1.00 0.91 0.98 0.93
Operating return on average tangible common equity 1,3 10.79 10.70 10.69 11.74 10.94 10.75 11.14
Operating efficiency ratio 1 61.15 60.62 62.98 60.63 58.41 60.88 58.57
Veritex Holdings, Inc. Capital Ratios:
Average stockholders' equity to average total assets 13.19 % 12.96 % 12.58 % 12.31 % 12.26 % 13.07 % 12.34 %
Tangible common equity to tangible assets 1 10.16 9.95 9.54 9.37 9.14 10.16 9.14
Tier 1 capital to average assets (leverage) 4 10.73 10.55 10.32 10.06 10.06 10.73 10.06
Common equity tier 1 capital 4 11.05 11.04 11.09 10.86 10.49 11.05 10.49
Tier 1 capital to risk-weighted assets 4 11.32 11.31 11.36 11.13 10.75 11.32 10.75
Total capital to risk-weighted assets 4 13.46 13.46 13.96 13.91 13.45 13.46 13.45
Risk-weighted assets 4 $ 11,435,978 $ 11,318,220 $ 11,247,813 $ 11,290,800 $ 11,450,997 $ 11,435,978 $ 11,450,997

1 Refer to the section titled “Reconciliation of Non-GAAP Financial Measures” after the financial highlights for a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures.
2 Dividend amount represents dividend paid per common share subsequent to each respective quarter end.
3 Annualized ratio for quarterly metrics.
4 June 30, 2025 ratios and risk-weighted assets are estimated.


VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Financial Highlights
(In thousands)

Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024
(unaudited) (unaudited) (unaudited) (unaudited)
ASSETS
Cash and due from banks $ 66,696 $ 81,088 $ 52,486 $ 54,165 $ 53,462
Interest bearing deposits in other banks 703,869 768,702 802,714 1,046,625 598,375
Cash and cash equivalents 770,565 849,790 855,200 1,100,790 651,837
Debt securities, net 1,418,804 1,463,157 1,478,538 1,423,610 1,349,354
Other investments 73,986 69,452 69,638 71,257 75,885
Loans held for sale (“LHFS”) 69,480 69,236 89,309 48,496 57,046
LHI, MW 669,052 571,775 605,411 630,650 568,047
LHI, excluding MW 8,783,988 8,828,672 8,899,133 9,028,575 9,209,094
Total loans 9,522,520 9,469,683 9,593,853 9,707,721 9,834,187
ACL (112,262 ) (111,773 ) (111,745 ) (117,162 ) (113,431 )
Bank-owned life insurance 86,048 85,424 85,324 84,776 84,233
Bank premises, furniture and equipment, net 116,642 112,801 113,480 114,202 105,222
Other real estate owned (“OREO”) 9,218 24,268 24,737 9,034 24,256
Intangible assets, net of accumulated amortization 25,006 27,974 28,664 32,825 35,817
Goodwill 404,452 404,452 404,452 404,452 404,452
Other assets 212,889 210,863 226,200 211,471 232,518
Total assets $ 12,527,868 $ 12,606,091 $ 12,768,341 $ 13,042,976 $ 12,684,330
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Noninterest-bearing deposits $ 2,133,294 $ 2,318,645 $ 2,191,457 $ 2,643,894 $ 2,416,727
Interest-bearing transaction and savings deposits 5,009,137 5,180,495 5,061,157 4,204,708 3,979,454
Certificates and other time deposits 2,792,750 2,679,221 2,958,861 3,625,920 3,744,596
Correspondent money market deposits 482,739 486,762 541,117 561,489 584,067
Total deposits 10,417,920 10,665,123 10,752,592 11,036,011 10,724,844
Accounts payable and other liabilities 135,647 151,579 183,944 168,415 180,585
Advances from FHLB 169,000 — — — —
Subordinated debentures and subordinated notes 156,082 155,909 230,736 230,536 230,285
Total liabilities 10,878,649 10,972,611 11,167,272 11,434,962 11,135,714
Stockholders’ equity:
Common stock 617 615 613 613 612
Additional paid-in capital 1,329,803 1,329,626 1,328,748 1,324,929 1,321,995
Retained earnings 545,015 526,044 507,903 493,921 473,801
Accumulated other comprehensive loss (38,528 ) (42,170 ) (65,076 ) (40,330 ) (76,713 )
Treasury stock (187,688 ) (180,635 ) (171,119 ) (171,119 ) (171,079 )
Total stockholders’ equity 1,649,219 1,633,480 1,601,069 1,608,014 1,548,616
Total liabilities and stockholders’ equity $ 12,527,868 $ 12,606,091 $ 12,768,341 $ 13,042,976 $ 12,684,330



VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Financial Highlights
(In thousands, except per share data)
For the Quarter Ended For the Six Months
Ended
Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Jun 30,
2025 		Jun 30,
2024
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
Interest income:
Loans, including fees $ 149,354 $ 146,505 $ 154,998 $ 167,261 $ 166,979 $ 295,859 $ 328,921
Debt securities 16,883 17,106 16,893 15,830 15,408 33,989 29,103
Deposits in financial institutions and Fed Funds sold 8,039 9,244 11,888 12,571 7,722 17,283 15,772
Equity securities and other investments 847 870 940 1,001 1,138 1,717 2,038
Total interest income 175,123 173,725 184,719 196,663 191,247 348,848 375,834
Interest expense:
Transaction and savings deposits 48,080 45,165 44,841 47,208 45,619 93,245 92,403
Certificates and other time deposits 28,539 30,268 40,279 46,230 44,811 58,807 85,303
Advances from FHLB 113 27 130 47 1,468 140 2,859
Subordinated debentures and subordinated notes 2,056 2,824 3,328 3,116 3,113 4,880 6,227
Total interest expense 78,788 78,284 88,578 96,601 95,011 157,072 186,792
Net interest income 96,335 95,441 96,141 100,062 96,236 191,776 189,042
Provision for credit losses 1,750 4,000 2,300 4,000 8,250 5,750 15,750
Provision (benefit) for unfunded commitments 1,500 1,300 (401 ) — — 2,800 (1,541 )
Net interest income after provisions 93,085 90,141 94,242 96,062 87,986 183,226 174,833
Noninterest income:
Service charges and fees on deposit accounts 5,702 5,611 5,612 5,442 4,974 11,313 9,870
Loan fees 2,735 2,495 2,265 3,278 2,207 5,230 4,717
Loss on sales of debt securities — — (4,397 ) — — — (6,304 )
Government guaranteed loan income, net 1,688 3,301 5,368 780 1,320 4,989 3,934
Customer swap income 1,550 700 509 271 326 2,250 775
Other income 1,824 2,182 699 3,335 1,751 4,006 4,248
Total noninterest income 13,499 14,289 10,056 13,106 10,578 27,788 17,240
Noninterest expense:
Salaries and employee benefits 34,957 36,624 37,446 37,370 32,790 71,581 66,155
Occupancy and equipment 4,511 4,650 4,633 4,789 4,585 9,161 9,262
Professional and regulatory fees 5,558 4,931 5,564 4,903 5,617 10,489 11,670
Data processing and software expense 5,507 5,403 5,741 5,268 5,097 10,910 9,953
Marketing 2,612 2,032 2,896 2,781 1,976 4,644 3,522
Amortization of intangibles 2,438 2,438 2,437 2,438 2,438 4,876 4,876
Telephone and communications 233 330 323 335 365 563 626
Other 11,346 10,426 12,154 12,216 10,273 21,772 19,193
Total noninterest expense 67,162 66,834 71,194 70,100 63,141 133,996 125,257
Income before income tax expense 39,422 37,596 33,104 39,068 35,423 77,018 66,816
Income tax expense 8,516 8,526 8,222 8,067 8,221 17,042 15,458
Net income $ 30,906 $ 29,070 $ 24,882 $ 31,001 $ 27,202 $ 59,976 $ 51,358
Basic EPS $ 0.57 $ 0.53 $ 0.46 $ 0.57 $ 0.50 $ 1.10 $ 0.94
Diluted EPS $ 0.56 $ 0.53 $ 0.45 $ 0.56 $ 0.50 $ 1.09 $ 0.94
Weighted average basic shares outstanding 54,251 54,486 54,489 54,409 54,457 54,368 54,451
Weighted average diluted shares outstanding 54,766 55,123 55,237 54,932 54,823 54,944 54,832


VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Financial Highlights
(Unaudited)
For the Quarter Ended
June 30, 2025 March 31, 2025 June 30, 2024
Average
Outstanding
Balance 		Interest
Earned/
Interest
Paid 		Average
Yield/
Rate 4 		Average
Outstanding
Balance 		Interest
Earned/
Interest
Paid 		Average
Yield/
Rate 4 		Average
Outstanding
Balance 		Interest
Earned/
Interest
Paid 		Average
Yield/
Rate 4
(Dollars in thousands)
Assets
Interest-earning assets:
Loans 1 $ 8,875,970 $ 141,688 6.40 % $ 8,886,905 $ 140,329 6.40 % $ 9,344,482 $ 160,323 6.90 %
LHI, MW 523,203 7,666 5.88 426,724 6,176 5.87 420,946 6,656 6.36
Debt securities 1,440,369 16,883 4.70 1,467,220 17,106 4.73 1,352,293 15,408 4.58
Interest-bearing deposits in other banks 707,933 8,039 4.55 827,751 9,244 4.53 560,586 7,722 5.54
Equity securities and other investments 70,779 847 4.80 70,696 870 4.99 78,964 1,138 5.80
Total interest-earning assets 11,618,254 175,123 6.05 11,679,296 173,725 6.03 11,757,271 191,247 6.54
ACL (112,369 ) (111,563 ) (115,978 )
Noninterest-earning assets 933,328 938,401 937,413
Total assets $ 12,439,213 $ 12,506,134 $ 12,578,706
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand and savings deposits $ 5,502,672 $ 48,080 3.50 % $ 5,449,091 $ 45,165 3.36 % $ 4,570,329 $ 45,619 4.01 %
Certificates and other time deposits 2,742,655 28,539 4.17 2,726,309 30,268 4.50 3,591,035 44,811 5.02
Advances from FHLB and Other 9,813 113 4.62 2,333 27 4.69 106,648 1,468 5.54
Subordinated debentures and subordinated notes 155,985 2,056 5.29 191,638 2,824 5.98 230,141 3,113 5.44
Total interest-bearing liabilities 8,411,125 78,788 3.76 8,369,371 78,284 3.79 8,498,153 95,011 4.50
Noninterest-bearing liabilities:
Noninterest-bearing deposits 2,244,745 2,345,586 2,346,908
Other liabilities 142,925 170,389 192,036
Total liabilities 10,798,795 10,885,346 11,037,097
Stockholders’ equity 1,640,418 1,620,788 1,541,609
Total liabilities and stockholders’ equity $ 12,439,213 $ 12,506,134 $ 12,578,706
Net interest rate spread 2 2.29 % 2.24 % 2.04 %
Net interest income and margin 3 $ 96,335 3.33 % $ 95,441 3.31 % $ 96,236 3.29 %

1 Includes average outstanding balances of LHFS of $62.2 million, $66.3 million and $58.5 million for the quarters ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively, and average balances of LHI, excluding MW.
2 Net interest rate spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.
3 Net interest margin is equal to net interest income divided by average interest-earning assets.
4 Yields and rates for the quarter are annualized


VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Financial Highlights
(In thousands, except percentages)


For the Six Months Ended
June 30, 2025 June 30, 2024
Average
Outstanding
Balance 		Interest
Earned/
Interest Paid 		Average
Yield/
Rate 4 		Average
Outstanding
Balance 		Interest
Earned/
Interest Paid 		Average
Yield/
Rate 4
Assets
Interest-earning assets:
Loans 1 $ 8,881,407 $ 282,017 6.40 % $ 9,314,148 $ 317,908 6.86 %
LHI, MW 475,230 13,842 5.87 350,252 11,013 6.32
Debt securities 1,453,721 33,989 4.71 1,323,644 29,103 4.42
Interest-bearing deposits in other banks 767,511 17,283 4.54 572,589 15,772 5.54
Equity securities and other investments 70,738 1,717 4.89 77,616 2,038 5.28
Total interest-earning assets 11,648,607 348,848 6.04 11,638,249 375,834 6.49
ACL (111,969 ) (114,104 )
Noninterest-earning assets 935,850 933,229
Total assets $ 12,472,488 $ 12,457,374
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand and savings deposits $ 5,476,030 $ 93,245 3.43 % $ 4,604,887 $ 92,403 4.04 %
Certificates and other time deposits 2,734,527 58,807 4.34 3,437,385 85,303 4.99
Advances from FHLB and Other 6,094 140 4.63 103,819 2,859 5.54
Subordinated debentures and subordinated notes 173,713 4,880 5.67 230,011 6,227 5.44
Total interest-bearing liabilities 8,390,364 157,072 3.78 8,376,102 186,792 4.48
Noninterest-bearing liabilities:
Noninterest-bearing deposits 2,294,887 2,351,112
Other liabilities 156,580 192,422
Total liabilities 10,841,831 10,919,636
Stockholders’ equity 1,630,657 1,537,738
Total liabilities and stockholders’ equity $ 12,472,488 $ 12,457,374
Net interest rate spread 2 2.26 % 2.01 %
Net interest income and margin 3 $ 191,776 3.32 % $ 189,042 3.27 %

1 Includes average outstanding balances of LHFS of $64.2 million and $56.2 million for the six months ended June 30, 2025 and 2024, respectively, and average balances of LHI, excluding MW.
2 Net interest rate spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.
3 Net interest margin is equal to net interest income divided by average interest-earning assets.
4 Yields and rates for the six month periods are annualized


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


Yield Trend
For the Quarter Ended For the Six Months Ended
Jun 30,
2025 		Mar 31,
2025 		Dec 31,
2024 		Sep 30,
2024 		Jun 30,
2024 		Jun 30,
2025 		Jun 30,
2024
Average yield on interest-earning assets:
Loans 1 6.40 % 6.40 % 6.56 % 6.89 % 6.90 % 6.40 % 6.86 %
LHI, MW 5.88 5.87 5.83 6.75 6.36 5.87 6.32
Total Loans 6.37 6.38 6.53 6.89 6.88 6.38 6.84
Debt securities 4.70 4.73 4.61 4.55 4.58 4.71 4.42
Interest-bearing deposits in other banks 4.55 4.53 4.87 5.41 5.54 4.54 5.54
Equity securities and other investments 4.80 4.99 5.18 5.25 5.80 4.89 5.28
Total interest-earning assets 6.05 % 6.03 % 6.15 % 6.49 % 6.54 % 6.04 % 6.49 %
Average rate on interest-bearing liabilities:
Interest-bearing demand and savings deposits 3.50 % 3.36 % 3.57 % 4.00 % 4.01 % 3.43 % 4.04 %
Certificates and other time deposits 4.17 4.50 4.83 5.00 5.02 4.34 4.99
Advances from FHLB and other 4.62 4.69 4.88 5.73 5.54 4.63 5.54
Subordinated debentures and subordinated notes 5.29 5.98 5.74 5.38 5.44 5.67 5.44
Total interest-bearing liabilities 3.76 % 3.79 % 4.12 % 4.46 % 4.50 % 3.78 % 4.48 %
Net interest rate spread 2 2.29 % 2.24 % 2.03 % 2.03 % 2.04 % 2.26 % 2.01 %
Net interest margin 3 3.33 % 3.31 % 3.20 % 3.30 % 3.29 % 3.32 % 3.27 %


1Includes average outstanding balances of LHFS of $62.2 million, $66.3 million, $46.4 million, $54.3 million and $58.5 million for the three months ended June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024, and June 30, 2024, respectively and $64.2 million and $56.2 million for the six months ended June 30, 2025 and June 30, 2024 respectively, and average balances of LHI, excluding MW.
2 Net interest rate spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.
3 Net interest margin is equal to net interest income divided by average interest-earning assets.


Supplemental Yield Trend

For the Quarter Ended For the Six Months Ended
Jun 30,
2025 		Mar 31,
2025 		Dec 31,
2024 		Sep 30,
2024 		Jun 30,
2024 		Jun 30,
2025 		Jun 30,
2024
Average cost of interest-bearing deposits 3.73 % 3.74 % 4.07 % 4.44 % 4.46 % 3.73 % 3.33 %
Average costs of total deposits, including noninterest-bearing 2.93 2.91 3.16 3.42 3.46 2.92 2.48



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

LHI and Deposit Portfolio Composition
Jun 30,
2025 		Mar 31,
2025 		Dec 31,
2024 		Sep 30,
2024 		Jun 30,
2024
(Dollars in thousands)
LHI 1
Commercial and Industrial (“C&I”) $ 2,692,209 30.6 % $ 2,717,037 30.7 % $ 2,693,538 30.2 % $ 2,728,544 30.2 % $ 2,798,260 30.4 %
Real Estate:
Owner occupied commercial (“OOCRE”) 800,881 9.1 795,808 9.0 780,003 8.8 807,223 8.9 806,285 8.7
Non-owner occupied commercial (“NOOCRE”) 2,311,466 26.3 2,266,526 25.6 2,382,499 26.7 2,338,094 25.9 2,369,848 25.7
Construction and land 1,142,457 13.0 1,214,260 13.7 1,303,711 14.7 1,436,540 15.8 1,536,580 16.7
Farmland 31,589 0.4 31,339 0.4 31,690 0.4 32,254 0.4 30,512 0.3
1-4 family residential 1,086,342 12.3 1,021,293 11.6 957,341 10.7 944,755 10.5 917,402 10.0
Multi-family residential 718,946 8.2 782,412 8.9 750,218 8.4 738,090 8.2 748,740 8.1
Consumer 8,796 0.1 8,597 0.1 9,115 0.1 11,292 0.1 9,245 0.1
Total LHI 1 $ 8,792,686 100 % $ 8,837,272 100 % $ 8,908,115 100 % $ 9,036,792 100 % $ 9,216,872 100 %
MW 669,052 571,775 605,411 630,650 568,047
Total LHI 1 $ 9,461,738 $ 9,409,047 $ 9,513,526 $ 9,667,442 $ 9,784,919
Total LHFS 69,480 69,236 89,309 48,496 57,046
Total loans $ 9,531,218 $ 9,478,283 $ 9,602,835 $ 9,715,938 $ 9,841,965
Deposits
Noninterest-bearing $ 2,133,294 20.5 % $ 2,318,645 21.7 % $ 2,191,457 20.4 % $ 2,643,894 24.0 % $ 2,416,727 22.5 %
Interest-bearing transaction 603,861 5.8 863,462 8.1 839,005 7.8 421,059 3.8 523,272 4.9
Money market 3,856,812 37.0 3,730,446 35.0 3,772,964 35.1 3,462,709 31.4 3,268,286 30.5
Savings 548,464 5.3 586,587 5.5 449,188 4.2 320,940 2.9 187,896 1.8
Certificates and other time deposits 2,792,750 26.8 2,679,221 25.1 2,958,861 27.5 3,625,920 32.8 3,744,596 34.9
Correspondent money market accounts 482,739 4.6 486,762 4.6 541,117 5.0 561,489 5.1 584,067 5.4
Total deposits $ 10,417,920 100 % $ 10,665,123 100 % $ 10,752,592 100 % $ 11,036,011 100 % $ 10,724,844 100 %
Total loans to deposits ratio 91.5 % 88.9 % 89.3 % 88.0 % 91.8 %
Total loans to deposit ratio, excluding MW loans and LHFS 84.4 % 82.9 % 82.8 % 81.9 % 85.9 %

1 Total LHI does not include deferred fees of $8.7 million, $8.6 million, $9.0 million, $8.2 million and $7.8 million at June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024 and June 30, 2024, respectively.



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

Asset Quality
For the Quarter Ended For the Six Months Ended
Jun 30,
2025 		Mar 31,
2025 		Dec 31,
2024 		Sep 30,
2024 		Jun 30,
2024 		Jun 30,
2025 		Jun 30,
2024
(Dollars in thousands)
NPAs:
Nonaccrual loans $ 61,142 $ 69,188 $ 52,521 $ 55,335 $ 58,537 $ 61,142 $ 58,537
Nonaccrual PCD loans 1 196 196 — 70 73 196 73
Accruing loans 90 or more days past due 2 4,641 3,249 1,914 2,860 143 4,641 143
Total nonperforming loans held for investment (“NPLs”) 65,979 72,633 54,435 58,265 58,753 65,979 58,753
Other real estate owned (“OREO”) 9,218 24,268 24,737 9,034 24,256 9,218 24,256
Total NPAs $ 75,197 $ 96,901 $ 79,172 $ 67,299 $ 83,009 $ 75,197 $ 83,009
Charge-offs:
1-4 family residential $ — $ — $ — $ — $ (31 ) $ — $ (31 )
Multifamily — — — — (198 ) — (198 )
OOCRE — — — — — — (120 )
NOOCRE (215 ) (3,090 ) (5,113 ) — (1,969 ) (3,305 ) (6,262 )
C&I (1,571 ) (918 ) (4,586 ) (2,259 ) (5,601 ) (2,489 ) (6,547 )
Consumer (55 ) (212 ) (420 ) (54 ) (30 ) (267 ) (101 )
Total charge-offs $ (1,841 ) $ (4,220 ) $ (10,119 ) $ (2,313 ) $ (7,829 ) $ (6,061 ) $ (13,259 )
Recoveries:
1-4 family residential $ 1 $ 21 $ 2 $ 3 $ — $ 22 $ 1
OOCRE 186 — — — 120 186 120
NOOCRE — — 1,323 — — — —
C&I 131 32 1,047 1,962 361 163 457
MW — — — 46 — — —
Consumer 262 195 30 33 497 457 546
Total recoveries $ 580 $ 248 $ 2,402 $ 2,044 $ 978 $ 828 $ 1,124
Net charge-offs $ (1,261 ) $ (3,972 ) $ (7,717 ) $ (269 ) $ (6,851 ) $ (5,233 ) $ (12,135 )
Provision for credit losses $ 1,750 $ 4,000 $ 2,300 $ 4,000 $ 8,250 $ 5,750 $ 15,750
ACL $ 112,262 $ 111,773 $ 111,745 $ 117,162 $ 113,431 $ 112,262 $ 113,431
Asset Quality Ratios:
NPAs to total assets 0.60 % 0.77 % 0.62 % 0.52 % 0.65 % 0.60 % 0.65 %
NPAs, excluding nonaccrual PCD loans, to total assets 0.60 0.77 0.62 0.52 0.65 0.60 0.65
NPAs to total LHI and OREO 0.79 1.03 0.83 0.70 0.85 0.79 0.85
NPLs to total LHI 0.70 0.77 0.57 0.60 0.60 0.70 0.60
NPLs, excluding nonaccrual PCD loans, to total LHI 0.70 0.77 0.57 0.60 0.60 0.70 0.60
ACL to total LHI 1.19 1.19 1.18 1.21 1.16 1.19 1.16
ACL to total LHI, excluding MW 1.28 1.27 1.25 1.30 1.23 1.28 1.23
Net charge-offs to average loans outstanding 3 0.05 0.17 0.32 0.01 0.28 0.11 0.25

1 Nonaccrual PCD loans consist of PCD loans that transitioned upon adoption of ASC 326 Financial Instruments - Credit Losses and were accounted for on a pooled basis that have subsequently been placed on nonaccrual status.
2 Accruing loans greater than 90 days past due exclude purchase credit deteriorated loans greater than 90 days past due that are accounted for on a pooled basis.
3 Annualized ratio for quarterly metrics.

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

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

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

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

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

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

As of
Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024
(Dollars in thousands, except per share data)
Tangible Common Equity
Total stockholders' equity $ 1,649,219 $ 1,633,480 $ 1,601,069 $ 1,608,014 $ 1,548,616
Adjustments:
Goodwill (404,452 ) (404,452 ) (404,452 ) (404,452 ) (404,452 )
Core deposit intangibles (13,868 ) (16,306 ) (18,744 ) (21,182 ) (23,619 )
Tangible common equity $ 1,230,899 $ 1,212,722 $ 1,177,873 $ 1,182,380 $ 1,120,545
Common shares outstanding 54,265 54,297 54,517 54,446 54,350
Book value per common share $ 30.39 $ 30.08 $ 29.37 $ 29.53 $ 28.49
Tangible book value per common share $ 22.68 $ 22.33 $ 21.61 $ 21.72 $ 20.62

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

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

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

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

As of
Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024
(Dollars in thousands)
Tangible Common Equity
Total stockholders' equity $ 1,649,219 $ 1,633,480 $ 1,601,069 $ 1,608,014 $ 1,548,616
Adjustments:
Goodwill (404,452 ) (404,452 ) (404,452 ) (404,452 ) (404,452 )
Core deposit intangibles (13,868 ) (16,306 ) (18,744 ) (21,182 ) (23,619 )
Tangible common equity $ 1,230,899 $ 1,212,722 $ 1,177,873 $ 1,182,380 $ 1,120,545
Tangible Assets
Total assets $ 12,527,868 $ 12,606,091 $ 12,768,341 $ 13,042,976 $ 12,684,330
Adjustments:
Goodwill (404,452 ) (404,452 ) (404,452 ) (404,452 ) (404,452 )
Core deposit intangibles (13,868 ) (16,306 ) (18,744 ) (21,182 ) (23,619 )
Tangible Assets $ 12,109,548 $ 12,185,333 $ 12,345,145 $ 12,617,342 $ 12,256,259
Tangible Common Equity to Tangible Assets 10.16 % 9.95 % 9.54 % 9.37 % 9.14 %

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

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

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

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

For the Quarter Ended For the Six Months Ended
Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Jun 30, 2025 Jun 30, 2024
(Dollars in thousands)
Net income available for common stockholders adjusted for amortization of core deposit intangibles
Net income $ 30,906 $ 29,070 $ 24,882 $ 31,001 $ 27,202 $ 59,976 $ 51,358
Adjustments:
Plus: Amortization of core deposit intangibles 2,438 2,438 2,437 2,438 2,438 4,876 4,876
Less: Tax benefit at the statutory rate 512 512 512 512 512 1,024 1,024
Net income available for common stockholders adjusted for amortization of core deposit intangibles $ 32,832 $ 30,996 $ 26,807 $ 32,927 $ 29,128 $ 63,828 $ 55,210
Average Tangible Common Equity
Total average stockholders' equity $ 1,640,418 $ 1,620,788 $ 1,604,335 $ 1,583,401 $ 1,541,609 $ 1,630,657 $ 1,537,738
Adjustments:
Average goodwill (404,452 ) (404,452 ) (404,452 ) (404,452 ) (404,452 ) (404,452 ) (404,452 )
Average core deposit intangibles (15,467 ) (17,904 ) (20,342 ) (22,789 ) (25,218 ) (16,679 ) (26,437 )
Average tangible common equity $ 1,220,499 $ 1,198,432 $ 1,179,541 $ 1,156,160 $ 1,111,939 $ 1,209,526 $ 1,106,849
Return on Average Tangible Common Equity (Annualized) 10.79 % 10.49 % 9.04 % 11.33 % 10.54 % 10.64 % 10.03 %

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

Operating Earnings, Pre-tax, Pre-provision Operating Earnings and performance metrics calculated using Operating Earnings and Pre-tax, Pre-provision Operating Earnings, including Diluted Operating Earnings per Share, Operating Return on Average Assets, Pre-tax, Pre-Provision Operating Return on Average Assets, Pre-tax, Pre-Provision Operating Return on Average Loans, Operating Return on Average Tangible Common Equity and Operating Efficiency Ratio. Operating earnings, pre-tax, pre-provision operating earnings and the performance metrics calculated using these metrics, listed below, are non-GAAP measures used by management to evaluate the Company’s financial performance. We calculate (a) operating earnings as net income plus BOLI 1035 exchange charges, plus severance payments, plus loss on sales of debt securities available for sale (“AFS”), net, plus FDIC special assessment, less tax impact of adjustments, plus nonrecurring tax adjustments. We calculate (b) diluted operating earnings per share as operating earnings as described in clause (a) divided by weighted average diluted shares outstanding. We calculate (c) pre-tax, pre-provision operating earnings as operating earnings as described in clause (a) plus provision for income taxes, plus provision (benefit) for credit losses and unfunded commitments. We calculate (d) pre-tax, pre-provision operating return on average assets as pre-tax, pre-provision operating earnings as described in clause (a) divided by total average assets. We calculate (e) operating return on average assets as operating earnings as described in clause (a) divided by total average assets. We calculate (f) operating return on average tangible common equity as operating earnings as described in clause (a), adjusted for the amortization of intangibles and tax benefit at the statutory rate, divided by total average tangible common equity (average stockholders’ equity less average goodwill and average core deposit intangibles, net of accumulated amortization). We calculate (g) operating efficiency ratio as noninterest expense plus adjustments to operating noninterest expense divided by noninterest income plus adjustments to operating noninterest income, plus net interest income.

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

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

For the Quarter Ended For the Six Months Ended
Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Jun 30, 2025 Jun 30, 2024
(Dollars in thousands, except per share data)
Operating Earnings
Net income $ 30,906 $ 29,070 $ 24,882 $ 31,001 $ 27,202 $ 59,976 $ 51,358
Plus: BOLI 1035 exchange charges 1 — 517 — — — 517 —
Plus: Severance payments 2 — — 1,545 1,487 613 — 613
Plus: Loss on sales of AFS securities, net — — 4,397 — — — 6,304
Plus: FDIC special assessment — — — — 134 — 134
Operating pre-tax income 30,906 29,587 30,824 32,488 27,949 60,493 58,409
Less: Tax impact of adjustments — 109 1,248 307 166 109 1,489
Plus: Nonrecurring tax adjustments — 229 193 — 527 229 527
Operating earnings $ 30,906 $ 29,707 $ 29,769 $ 32,181 $ 28,310 $ 60,613 $ 57,447
Weighted average diluted shares outstanding 54,766 55,123 55,237 54,932 54,823 54,944 54,832
Diluted EPS $ 0.56 $ 0.53 $ 0.45 $ 0.56 $ 0.50 $ 1.09 $ 0.94
Diluted operating EPS $ 0.56 $ 0.54 $ 0.54 $ 0.59 $ 0.52 $ 1.10 $ 1.05

1Represents non-recurring charges for the completion of a 1035 exchange of BOLI contracts.
2Severance payments relate to certain restructurings made during the periods disclosed.

For the Quarter Ended For the Six Months Ended
(Dollars in thousands) Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Jun 30, 2025 Jun 30, 2024
Pre-Tax, Pre-Provision Operating Earnings
Net income $ 30,906 $ 29,070 $ 24,882 $ 31,001 $ 27,202 $ 59,976 $ 51,358
Plus: Provision for income taxes 8,516 8,526 8,222 8,067 8,221 17,042 15,458
Plus: Provision for credit losses and unfunded commitments 3,250 5,300 1,899 4,000 8,250 8,550 14,209
Plus: Severance payments 3 — — 1,545 1,487 613 — 613
Plus: Loss on sale of AFS securities, net — — 4,397 — — — 6,304
Plus: BOLI 1035 exchange charges 2 — 517 — — — 517 —
Plus: FDIC special assessment — — — — 134 — 134
Pre-tax, pre-provision operating earnings $ 42,672 $ 43,413 $ 40,945 $ 44,555 $ 44,420 $ 86,085 $ 88,076
Average total assets $ 12,439,213 $ 12,506,134 $ 12,750,972 $ 12,861,918 $ 12,578,706 $ 12,472,488 $ 12,457,374
Pre-tax, pre-provision operating return on average assets 1 1.38 % 1.41 % 1.28 % 1.38 % 1.42 % 1.39 % 1.42 %
Average loans $ 9,399,173 $ 9,313,629 $ 9,449,565 $ 9,661,774 $ 9,765,428 $ 9,356,637 $ 9,664,400
Pre-tax, pre-provision operating return on average loans 1 1.82 % 1.89 % 1.72 % 1.83 % 1.83 % 1.86 % 1.83 %
Average total assets $ 12,439,213 $ 12,506,134 $ 12,750,972 $ 12,861,918 $ 12,578,706 $ 12,472,488 $ 12,457,374
Return on average assets 1 1.00 % 0.94 % 0.78 % 0.96 % 0.87 % 0.97 % 0.83 %
Operating return on average assets 1 1.00 0.96 0.93 1.00 0.91 0.98 0.93
Operating earnings adjusted for amortization of core deposit intangibles
Operating earnings $ 30,906 $ 29,707 $ 29,769 $ 32,181 $ 28,310 $ 60,613 $ 57,447
Adjustments:
Plus: Amortization of core deposit intangibles 2,438 2,438 2,437 2,438 2,438 4,876 4,876
Less: Tax benefit at the statutory rate 512 512 512 512 512 1,024 1,024
Operating earnings adjusted for amortization of core deposit intangibles $ 32,832 $ 31,633 $ 31,694 $ 34,107 $ 30,236 $ 64,465 $ 61,299
Average Tangible Common Equity
Total average stockholders' equity $ 1,640,418 $ 1,620,788 $ 1,604,335 $ 1,583,401 $ 1,541,609 $ 1,630,657 $ 1,537,738
Adjustments:
Less: Average goodwill (404,452 ) (404,452 ) (404,452 ) (404,452 ) (404,452 ) (404,452 ) (404,452 )
Less: Average core deposit intangibles (15,467 ) (17,904 ) (20,342 ) (22,789 ) (25,218 ) (16,679 ) (26,437 )
Average tangible common equity $ 1,220,499 $ 1,198,432 $ 1,179,541 $ 1,156,160 $ 1,111,939 $ 1,209,526 $ 1,106,849
Operating return on average tangible common equity 1 10.79 % 10.70 % 10.69 % 11.74 % 10.94 % 10.75 % 11.14 %
Efficiency ratio 61.15 % 60.91 % 67.04 % 61.94 % 59.11 % 61.03 % 60.72 %
Operating efficiency ratio
Net interest income $ 96,335 $ 95,441 $ 96,141 $ 100,062 $ 96,236 $ 191,776 $ 189,042
Noninterest income 13,499 14,289 10,056 13,106 10,578 27,788 17,240
Plus: BOLI 1035 exchange charges 2 — 517 — — — 517 —
Plus: Loss on sale of AFS securities, net — — 4,397 — — — 6,304
Operating noninterest income 13,499 14,806 14,453 13,106 10,578 28,305 23,544
Noninterest expense 67,162 66,834 71,194 70,100 63,141 133,996 125,257
Less: FDIC special assessment — — — — 134 — 134
Less: Severance payments 3 — — 1,545 1,487 613 — 613
Operating noninterest expense $ 67,162 $ 66,834 $ 69,649 $ 68,613 $ 62,394 $ 133,996 $ 124,510
Operating efficiency ratio 61.15 % 60.62 % 62.98 % 60.63 % 58.41 % 60.88 % 58.57 %

1 Annualized ratio for quarterly metrics.
2 Represents non-recurring charges for the completion of a 1035 exchange of BOLI contracts.
3 Severance payments relate to certain restructurings made during the periods disclosed.