Skip to main content

Veritex Holdings, Inc. Reports Third Quarter Operating Results

DALLAS, Oct. 25, 2022 (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 September 30, 2022.

“The third quarter of 2022 resulted in record dollar earnings for our Company in a resilient Texas market” said President and CEO, C. Malcolm C. Holland, III. “We reported historical financial metrics with 2.2% in pre-tax, pre-provision operating return, 1.5% in return on average assets, return on average tangible common equity of 18% and an efficiency ratio of 44% coupled with continuing improved credit metrics noted by a 14 bp decrease in nonperforming assets. We remain focused on this positive momentum and deposit growth but more importantly our customers, the strong markets we serve and our shareholders”

  Quarter to Date Year to Date
Financial Highlights Q3 2022 Q2 2022 Q3 2022 Q3 2021
   
  (Dollars in thousands, except per share data)
(unaudited)
GAAP        
Net income $43,322  $29,626  $106,418  $98,078 
Diluted EPS  0.79   0.54   1.98   1.95 
Book value per common share  26.15   26.50   26.15   26.09 
Return on average assets2  1.50%  1.11%  1.33%  1.42%
Efficiency ratio  44.71   50.76   49.05   49.79 
Return on average equity2  11.82   8.21   10.02   10.43 
Non-GAAP1        
Operating earnings $43,625  $29,855  $107,494  $97,237 
Diluted operating EPS  0.80   0.55   2.00   1.94 
Tangible book value per common share  17.91   18.20   17.91   17.53 
Pre-tax, pre-provision operating earnings  63,454   47,000   152,719   122,565 
Pre-tax, pre-provision operating return on average assets2  2.20%  1.76%  1.90%  1.78%
Operating return on average assets2  1.51   1.12   1.34   1.41 
Operating efficiency ratio  44.37   50.45   48.59   49.89 
Return on average tangible common equity2  17.82   12.68   15.40   16.70 
Operating return on average tangible common equity2  17.94   12.77   15.55   16.57 

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

Other Third Quarter Highlights

  • Pre-tax, pre-provision operating return on average assets increased 44 bps from the second quarter of 2022 to 2.20%;
  • Net interest margin increased to 3.77%, up 35 basis points from the second quarter of 2022;
  • Non-performing assets (“NPAs”) to total assets decreased to 0.26%, or 14 bps from June 30, 2022 and 51 bps from September 30, 2021, respectively;
  • Net charge-offs to average loans outstanding was 3 basis points for the third quarter of 2022;
  • Total loans held for investment (“LHI”), excluding mortgage warehouse (“MW”) and paycheck protection program (“PPP”) loans, grew $594.6 million, or 30.0% annualized, during the three months ended September 30, 2022 from $8.5 billion at the end of the second quarter of 2022;
  • Total deposits grew $230.7 million, or 10.8% annualized, during the three months ended September 30, 2022 from $8.5 billion at the end of the second quarter of 2022; and
  • Declared quarterly cash dividend of $0.20 per share of outstanding common stock payable on November 25, 2022.

Results of Operations for the Three Months Ended September 30, 2022

Net Interest Income

For the three months ended September 30, 2022, net interest income before provision for credit losses was $101.0 million and net interest margin was 3.77% compared to $84.5 million and 3.42%, respectively, for the three months ended June 30, 2022. The $16.6 million increase in net interest income before provision for credit losses was primarily due to a $27.0 million increase in interest income on loans driven by an increase in average balances and loan yields during the three months ended September 30, 2022. Net interest margin increased 35 basis points compared to the three months ended June 30, 2022, primarily due to the increase in yields earned on loans during three months ended September 30, 2022, partially offset by an increase in funding costs.

Compared to the three months ended September 30, 2021, net interest income before provision for credit losses for the three months ended September 30, 2022 increased by $29.8 million, or 41.8%. The increase was primarily due to a $38.1 million increase in interest income on loans driven by an increase in average balances and loan yields. Net interest margin increased 51 basis points to 3.77% for the three months ended September 30, 2022 from 3.26% for the three months ended September 30, 2021. The increase was primarily due to the increase in average balances and loan yields during the three months ended September 30, 2022, partially offset by an increase in funding costs.

Noninterest Income

Noninterest income for the three months ended September 30, 2022 was $13.0 million, an increase of $2.6 million, or 25.5%, compared to the three months ended June 30, 2022. The increase was primarily due to a $2.0 million increase in customer swap income and a $2.2 million increase in the fair value of the servicing asset, partially offset by a $2.0 million decrease in equity method investment income.

Compared to the three months ended September 30, 2021, noninterest income for the three months ended September 30, 2022 decreased by $2.6 million, or 16.7%. The decrease was primarily due to a $5.6 million decrease in equity method investment income, partially offset by a $2.3 million increase in customer swap income and a $1.0 million increase in loan fees.

Noninterest Expense

Noninterest expense was $51.0 million for the three months ended September 30, 2022, compared to $48.2 million for the three months ended June 30, 2022, an increase of $2.8 million, or 5.9%. This increase was primarily due to a $2.7 million increase in salaries and employee benefits from continued investment in talent.

Compared to the three months ended September 30, 2021, noninterest expense for the three months ended September 30, 2022 increased by $9.7 million, or 23.4%. The increase was primarily driven by a $6.8 million increase in salaries and employee benefits as a result of a $4.1 million increase in salaries and employee benefits from continued investment in talent.

Financial Condition

Total LHI, excluding MW and PPP loans, were $8.5 billion at September 30, 2022, an increase of $594.6 million, or 30.0% annualized, compared to June 30, 2022. The increase was the result of the continued execution, and success of our loan growth strategy, including our continued investment in talent.

Total deposits were $8.7 billion at September 30, 2022, an increase of $230.7 million, or 10.8% annualized, compared to June 30, 2022. The increase was primarily the result of an increase of $262.4 million in interest-bearing transaction and savings deposits and an increase of $104.7 million in certificates and other time deposits, partially offset by a $136.4 million decrease in non-interest bearing deposits.

Credit Quality

Nonperforming assets totaled $30.6 million, or 0.26% of total assets at September 30, 2022, compared to $45.0 million, or 0.40% of total assets, at June 30, 2022. The Company had net charge-offs of $2.2 million for the quarter, which were fully reserved against in prior quarters under our allowance for credit loss (“ACL”) model.

The Company recorded a provision for credit losses of $6.7 million for the three months ended September 30, 2022, a $9.0 million provision for credit losses for the three months ended June 30, 2022 and no provision for credit losses for the three months ended September 30, 2021. The recorded provision for credit losses for the three months ended September 30, 2022, compared to the three months ended June 30, 2022, was primarily attributable to an increase in general reserves as a result of changes in economic factors and loan growth. For the three months ended September 30, 2022, we recorded an $850 thousand provision for unfunded commitments, which was attributable to changes in economic factors and an increase of unfunded balances. ACL as a percentage of LHI, excluding MW and PPP loans, was 1.00%, 1.02% and 1.42% at September 30, 2022, June 30, 2022 and September 30, 2021, respectively.

Dividend Information

After the close of the market on Tuesday, October 25, 2022, Veritex’s Board of Directors declared a quarterly cash dividend of $0.20 per share on its outstanding shares of common stock. The dividend will be paid on or after November 25, 2022 to stockholders of record as of the close of business on November 11, 2022.

Non-GAAP Financial Measures

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

Conference Call

The Company will host an investor conference call and webcast to review the results on Wednesday, October 26, 2022, at 8:30 a.m. Central Time. Participants may pre-register for the call by visiting https://edge.media-server.com/mmc/p/w5hrkf8v and will receive a unique PIN, which can be used when dialing in for the call.

Participants may also register via teleconference at:
https://register.vevent.com/register/BIcf08415eefb54948a6cdbc60349b8e55. Once registration is completed, participants will be provided with a dial-in number containing a personalized conference code to access the call. All participants are instructed to dial-in 15 minutes prior to the start time.

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

About Veritex Holdings, Inc.

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

 

Forward-Looking Statements

This earnings release includes “forward-looking statements”, within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on various facts and derived utilizing assumptions, current expectations, estimates and projections and are subject to known and unknown risks, uncertainties and other factors, which change over time and are beyond our control, that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements include, without limitation, statements relating to the expected payment of Veritex Holdings, Inc.’s (“Veritex”) quarterly cash dividend; the impact of certain changes in Veritex’s accounting policies, standards and interpretations; the effects of the COVID-19 pandemic and actions taken in response thereto; and Veritex’s future financial performance, business and growth strategy, projected plans and objectives, as well as other projections based on macroeconomic and industry trends, which are inherently unreliable due to the multiple factors that impact broader economic and industry trends, and any such variations may be material. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “seeks,” “targets,” “outlooks,” “plans” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing words. We refer you to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of Veritex’s Annual Report on Form 10-K for the year ended December 31, 2021 and any updates to those risk factors set forth in Veritex’s Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings with the Securities and Exchange Commission (“SEC”), which are available on the SEC’s website at www.sec.gov. If one or more events related to these or other risks or uncertainties materialize, or if Veritex’s underlying assumptions prove to be incorrect, actual results may differ materially from what Veritex anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. Veritex does not undertake any obligation, and specifically declines any obligation, to supplement, update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by law. All forward-looking statements, expressed or implied, included in this earnings release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Veritex or persons acting on Veritex’s behalf may issue.

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

  For the Quarter Ended For the Nine Months Ended
  Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Sep 30, 2022 Sep 30, 2021
   
  (Dollars and shares in thousands)
Per Share Data (Common Stock):              
Basic EPS $0.80  $0.55  $0.66  $0.84  $0.75  $2.01  $1.98 
Diluted EPS  0.79   0.54   0.65   0.82   0.73   1.98   1.95 
Book value per common share  26.15   26.50   26.86   26.64   26.09   26.15   26.09 
Tangible book value per common share1  17.91   18.20   18.51   17.49   17.53   17.91   17.53 
Dividends paid per common share outstanding2  0.20   0.20   0.20   0.20   0.20   0.60   0.57 
               
Common Stock Data:              
Shares outstanding at period end  53,988   53,951   53,907   49,372   49,229   53,988   49,229 
Weighted average basic shares outstanding for the period  53,979   53,949   50,695   49,329   49,423   52,886   49,431 
Weighted average diluted shares outstanding for the period  54,633   54,646   51,571   50,441   50,306   53,655   50,230 
               
Summary of Credit Ratios:              
ACL to total LHI, excluding MW and PPP loans  1.00%  1.02%  1.02%  1.15%  1.42%  1.00%  1.42%
NPAs to total assets  0.26   0.40   0.46   0.51   0.77   0.26   0.77 
Net charge-offs to average loans outstanding  0.03   0.01   0.07   0.19   0.09   0.10   0.18 
               
Summary Performance Ratios:              
Return on average assets3  1.50   1.11   1.36   1.68   1.56   1.33   1.42 
Return on average equity3  11.82   8.21   10.00   12.65   11.32   10.02   10.43 
Return on average tangible common equity1, 3  17.82   12.68   15.84   20.06   17.72   15.40   16.70 
Efficiency ratio  44.71   50.76   52.84   48.53   47.55   49.05   49.79 
Net interest margin  3.77   3.42   3.22   3.37   3.26   3.48   3.20 
               
Selected Performance Metrics - Operating:              
Diluted operating EPS1 $0.80  $0.55  $0.66  $0.84  $0.70  $2.00  $1.94 
Pre-tax, pre-provision operating return on average assets1, 2  2.20%  1.76%  1.71%  1.97%  1.85%  1.90%  1.78%
Operating return on average assets1, 3  1.51   1.12   1.38   1.72   1.48   1.34   1.41 
Operating return on average tangible common equity1, 3  17.94   12.77   16.08   20.48   16.92   15.55   16.57 
Operating efficiency ratio1  44.37   50.45   52.05   47.64   48.51   48.59   49.89 
               
Veritex Holdings, Inc. Capital Ratios:              
Average stockholders' equity to average total assets  12.69%  13.51%  13.58%  13.30%  13.75%  13.23%  13.63%
Tangible common equity to tangible assets1  8.58   9.04   9.98   9.28   9.43   8.58   9.43 
Tier 1 capital to average assets (leverage)  9.79   10.14   10.66   9.05   9.54   9.79   9.54 
Common equity tier 1 capital  9.09   9.25   9.84   8.58   8.75   9.09   8.75 
Tier 1 capital to risk-weighted assets  9.35   9.52   10.14   8.89   9.06   9.35   9.06 
Total capital to risk-weighted assets  11.68   11.95   12.73   11.60   12.31   11.68   12.31 

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

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

  Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021
  (unaudited) (unaudited) (unaudited)   (unaudited)
ASSETS          
Cash and cash equivalents $433,897  $410,716  $551,573  $379,784  $229,712 
Debt securities  1,303,004   1,354,403   1,244,514   1,052,494   1,103,745 
Other investments  115,551   202,685   188,699   190,591   191,786 
           
Loans held for sale  17,644   14,210   18,721   26,007   18,896 
LHI, PPP loans, carried at fair value  2,821   7,339   18,512   53,369   135,842 
LHI, MW  523,805   629,291   542,877   565,645   615,045 
LHI, excluding MW and PPP  8,510,433   7,915,792   7,125,429   6,766,009   6,615,905 
Total loans  9,054,703   8,566,632   7,705,539   7,411,030   7,385,688 
ACL  (85,037)  (80,576)  (72,485)  (77,754)  (93,771)
Bank-owned life insurance  84,030   84,097   83,641   83,194   83,781 
Bank premises, furniture and equipment, net  108,720   108,769   109,138   109,271   116,063 
Other real estate owned (“OREO”)     1,032   1,062       
Intangible assets, net of accumulated amortization  56,238   59,011   63,986   66,017   54,682 
Goodwill  404,452   404,452   404,452   403,771   370,840 
Other assets  238,896   193,590   173,561   138,851   129,774 
Total assets $11,714,454  $11,304,811  $10,453,680  $9,757,249  $9,572,300 
LIABILITIES AND STOCKHOLDERS’ EQUITY          
Deposits:          
Noninterest-bearing deposits $2,811,412  $2,947,830  $2,765,895  $2,510,723  $2,302,925 
Interest-bearing transaction and savings deposits  4,269,668   4,007,250   3,688,292   3,276,312   3,228,306 
Certificates and other time deposits  1,667,364   1,562,626   1,435,409   1,576,580   1,647,521 
Total deposits  8,748,444   8,517,706   7,889,596   7,363,615   7,178,752 
Accounts payable and other liabilities  173,198   126,116   105,552   69,160   66,571 
Advances from Federal Home Loan Bank (“FHLB”)  1,150,000   1,000,000   777,522   777,562   777,601 
Subordinated debentures and subordinated notes  228,524   228,272   228,018   227,764   262,761 
Securities sold under agreements to repurchase  2,389   3,275   4,996   4,069   2,455 
Total liabilities  10,302,555   9,875,369   9,005,684   8,442,170   8,288,140 
Commitments and contingencies          
Stockholders’ equity:          
Common stock  606   606   605   560   559 
Additional paid-in capital  1,303,171   1,300,170   1,297,161   1,142,758   1,137,889 
Retained earnings  350,195   317,664   298,830   275,273   243,633 
Accumulated other comprehensive (loss) income  (74,491)  (21,416)  18,982   64,070   69,661 
Treasury stock  (167,582)  (167,582)  (167,582)  (167,582)  (167,582)
Total stockholders’ equity  1,411,899   1,429,442   1,447,996   1,315,079   1,284,160 
Total liabilities and stockholders’ equity $11,714,454  $11,304,811  $10,453,680  $9,757,249  $9,572,300 
                     

VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Financial Highlights
(In thousands, except per share data)

  For the Quarter Ended For the Nine Months Ended
  Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Sep 30, 2022 Sep 30, 2021
Interest income:              
Loans, including fees $109,199  $82,191  $71,443  $74,174  $71,139  $262,833 $206,352 
Debt securities  10,462   9,632   7,762   9,553   7,613   27,856  22,579 
Deposits in financial institutions and Fed Funds sold  1,898   714   262   165   130   2,874  424 
Equity securities and other investments  1,666   1,057   910   1,004   898   3,633  2,233 
Total interest income  123,225   93,594   80,377   84,896   79,780   297,196  231,588 
Interest expense:              
Transaction and savings deposits  12,897   4,094   1,751   1,629   1,588   18,742  5,229 
Certificates and other time deposits  3,919   1,465   1,380   1,661   1,934   6,764  7,418 
Advances from FHLB  2,543   834   1,547   1,847   1,848   4,924  5,489 
Subordinated debentures and subordinated notes  2,826   2,721   2,659   3,018   3,134   8,206  9,410 
Total interest expense  22,185   9,114   7,337   8,155   8,504   38,636  27,546 
Net interest income  101,040   84,480   73,040   76,741   71,276   258,560  204,042 
Provision (benefit) for credit losses  6,650   9,000   (500)  (3,349)     15,150   
Provision (benefit) for unfunded commitments  850      493   (1,040)  (448)  1,343  (441)
Net interest income after provisions  93,540   75,480   73,047   81,130   71,724   242,067  204,483 
Noninterest income:              
Service charges and fees on deposit accounts  5,217   5,039   4,710   4,782   4,484   14,966  11,960 
Loan fees  2,786   2,385   2,794   2,697   1,746   7,965  4,910 
Loss on sales of investment securities              (188)    (188)
Gain on sales of mortgage loans held for sale  16   223   307   293   407   546  1,299 
Government guaranteed loan income, net  572   789   4,891   3,423   2,341   6,252  12,337 
Equity method investment (loss) income  (1,058)  966   367   1,238   4,522   275  4,522 
Customer swap income  3,358   1,321   946   796   1,093   5,625  1,694 
Other income (loss)  2,130   (345)  1,082   2,921   1,222   2,867  5,721 
Total noninterest income  13,021   10,378   15,097   16,150   15,627   38,496  42,255 
Noninterest expense:              
Salaries and employee benefits  29,714   26,924   27,513   25,401   22,964   84,151  69,347 
Occupancy and equipment  4,615   4,496   4,517   4,398   4,536   13,628  12,865 
Professional and regulatory fees  3,718   2,865   3,158   3,017   3,401   9,741  9,928 
Data processing and software expense  3,509   3,386   2,921   2,597   2,494   9,816  7,349 
Marketing  1,845   2,306   1,187   1,443   1,151   5,338  3,901 
Amortization of intangibles  2,494   2,495   2,495   2,494   2,509   7,484  7,563 
Telephone and communications  389   352   385   380   380   1,126  1,054 
Merger and acquisition (“M&A”) expense  384   295   700   826      1,379   
Other  4,323   5,034   3,696   4,521   3,886   13,053  10,628 
Total noninterest expense  50,991   48,153   46,572   45,077   41,321   145,716  122,635 
Income before income tax expense  55,570   37,705   41,572   52,203   46,030   134,847  124,103 
Income tax expense  12,248   8,079   8,102   10,697   9,195   28,429  26,025 
Net income $43,322  $29,626  $33,470  $41,506  $36,835  $106,418 $98,078 
Net income available to common stockholders $43,322  $29,626  $33,470  $41,506  $36,835  $106,418 $98,078 
               
Basic EPS $0.80  $0.55  $0.66  $0.84  $0.75  $2.01 $1.98 
Diluted EPS $0.79  $0.54  $0.65  $0.82  $0.73  $1.98 $1.95 
Weighted average basic shares outstanding  53,979   53,949   50,695   49,329   49,423   52,886  49,431 
Weighted average diluted shares outstanding  54,633   54,646   51,571   50,441   50,306   53,655  50,230 
                            

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

  For the Quarter Ended
  September 30, 2022 June 30, 2022 September 30, 2021
  Average
Outstanding
Balance
 Interest
Earned/
Interest
Paid
 Average
Yield/
Rate
 Average
Outstanding
Balance
 Interest
Earned/
Interest
Paid
 Average
Yield/
Rate
 Average
Outstanding
Balance
 Interest
Earned/
Interest
Paid
 Average
Yield/
Rate
   
  (In thousands, except percentages)
Assets                  
Interest-earning assets:                  
Loans1 $8,277,762  $104,543 5.01% $7,547,564  $78,234 4.16% $6,384,856  $66,911 4.16%
LHI, MW  448,556   4,649 4.11   479,187   3,929 3.29   465,945   3,697 3.15 
PPP loans  2,775   7 1.00   11,402   28 1.00   210,092   531 1.00 
Debt securities  1,362,365   10,462 3.05   1,318,502   9,632 2.93   1,119,952   7,613 2.70 
Interest-bearing deposits in other banks  346,296   1,898 2.17   369,847   714 0.77   336,289   130 0.15 
Equity securities and other investments  203,528   1,666 3.25   167,327   1,057 2.53   167,242   898 2.13 
Total interest-earning assets  10,641,282   123,225 4.59   9,893,829   93,594 3.79   8,684,376   79,780 3.64 
ACL  (81,888)      (74,268)      (99,482)    
Noninterest-earning assets  901,463       892,102       800,576     
Total assets $11,460,857      $10,711,663      $9,385,470     
                   
Liabilities and Stockholders’ Equity                  
Interest-bearing liabilities:                  
Interest-bearing demand and savings deposits $4,164,164  $12,897 1.23% $3,770,098  $4,094 0.44% $3,201,409  $1,588 0.20%
Certificates and other time deposits  1,656,347   3,919 0.94   1,459,690   1,465 0.40   1,519,824   1,934 0.50 
Advances from FHLB  904,065   2,543 1.12   828,769   834 0.40   777,617   1,848 0.94 
Subordinated debentures and subordinated notes  231,012   2,826 4.85   232,043   2,721 4.70   264,714   3,134 4.70 
Total interest-bearing liabilities  6,955,588   22,185 1.27   6,290,600   9,114 0.58   5,763,564   8,504 0.59 
                   
Noninterest-bearing liabilities:                  
Noninterest-bearing deposits  2,925,462       2,870,692       2,271,197     
Other liabilities  125,991       102,994       60,181     
Total liabilities  10,007,041       9,264,286       8,094,942     
Stockholders’ equity  1,453,816       1,447,377       1,290,528     
Total liabilities and stockholders’ equity $11,460,857      $10,711,663      $9,385,470     
                   
Net interest rate spread2     3.32%     3.21%     3.05%
Net interest income and margin3    101,040 3.77%    84,480 3.42%    71,276 3.26%
                         

1 Includes average outstanding balances of loans held for sale of $14,023, $12,112 and $8,542 for the three months ended September 30, 2022, June 30, 2022, and September 30, 2021, respectively, and average balances of LHI, excluding MW and PPP loans.
2 Net interest rate spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.
3 Net interest margin is equal to net interest income divided by average interest-earning assets.


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

  Nine Months Ended
  September 30, 2022 September 30, 2021
  Average
Outstanding
Balance
 Interest
Earned/
Interest Paid
 Average
Yield/ Rate
 Average
Outstanding
Balance
 Interest
Earned/
Interest Paid
 Average
Yield/ Rate
Assets            
Interest-earning assets:            
Loans1 $7,558,825  $255,630 4.52% $6,118,880  $193,040 4.22%
LHI, WH  449,906   6,998 2.08   477,319   10,988 3.08 
PPP loans  27,477   205 1.00   309,620   2,324 1.00 
Debt securities  1,274,712   27,856 2.92   1,093,263   22,579 2.76 
Interest-bearing deposits in other banks  422,905   2,874 0.91   408,601   424 0.14 
Equity securities and other investments  187,002   3,633 2.60   114,237   2,233 2.61 
Total interest-earning assets  9,920,827   297,196 4.01   8,521,920   231,588 3.63 
ACL  (78,015)      (103,478)    
Noninterest-earning assets  886,357       799,207     
Total assets $10,729,169      $9,217,649     
             
Liabilities and Stockholders’ Equity            
Interest-bearing liabilities:            
Interest-bearing demand and savings deposits $3,804,506  $18,742 0.66% $3,144,395  $5,229 0.22%
Certificates and other time deposits  1,539,861   6,764 0.59   1,514,954   7,418 0.65 
Advances from FHLB  837,254   4,924 0.79   777,655   5,489 0.94 
Subordinated debentures and subordinated notes  231,640   8,206 4.74   264,998   9,410 4.75 
Total interest-bearing liabilities  6,413,261   38,636 0.81   5,702,002   27,546 0.65 
             
Noninterest-bearing liabilities:            
Noninterest-bearing deposits  2,797,110       2,198,551     
Other liabilities  98,898       60,456     
Total liabilities  9,309,269       7,961,009     
Stockholders’ equity  1,419,900       1,256,640     
Total liabilities and stockholders’ equity $10,729,169      $9,217,649     
             
Net interest rate spread2     3.20%     2.98%
Net interest income and margin3   $258,560 3.48%   $204,042 3.20%
                 

1 Includes average outstanding balances of loans held for sale of $12,973 and $13,140 for the nine months ended September 30, 2022 and 2021, respectively, and average balances of LHI, excluding MW and PPP loans.
2 Net interest rate spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.
3 Net interest margin is equal to net interest income divided by average interest-earning assets.

VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Financial Highlights

Yield Trend

  For the Quarter Ended
  Sep 30,
2022
 Jun 30,
2022
 Mar 31,
2022
 Dec 31,
2021
 Sep 30,
2021
Average yield on interest-earning assets:          
Loans1 5.01% 4.16% 4.03% 4.12% 4.16%
LHI, MW 4.11  3.29  2.95  2.98  3.15 
PPP loans 1.00  1.00  1.00  1.00  1.00 
Debt securities 3.05  2.93  2.76  3.47  2.70 
Interest-bearing deposits in other banks 2.17  0.77  0.19  0.16  0.15 
Equity securities and other investments 3.25  2.53  1.94  2.09  2.13 
Total interest-earning assets 4.59% 3.79% 3.54% 3.72% 3.64%
           
Average rate on interest-bearing liabilities:          
Interest-bearing demand and savings deposits 1.23% 0.44% 0.20% 0.19% 0.20%
Certificates and other time deposits 0.94  0.40  0.37  0.41  0.50 
Advances from FHLB 1.12  0.40  0.81  0.94  0.94 
Subordinated debentures and subordinated notes 4.85  4.70  4.65  4.62  4.70 
Total interest-bearing liabilities 1.27% 0.58% 0.50% 0.54% 0.59%
           
Net interest rate spread2 3.32% 3.21% 3.04% 3.18% 3.05%
Net interest margin3 3.77% 3.42% 3.22% 3.37% 3.26%

  
1Includes average outstanding balances of loans held for sale of $14,023, $12,112, $12,769, $8,987 and $8,542 for the three months ended September 30, 2022, June 30, 2022, March 31, 2022, December 31, 2021 and September 30, 2021, respectively, and average balances of LHI, excluding MW and PPP loans.

2 Net interest rate spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.
3 Net interest margin is equal to net interest income divided by average interest-earning assets.

Supplemental Yield Trend

  For the Quarter Ended
  Sep 30,
2022
 Jun 30,
2022
 Mar 31,
2022
 Dec 31,
2021
 Sep 30,
2021
Average cost of interest-bearing deposits 1.15% 0.43% 0.26% 0.26% 0.30%
Average costs of total deposits, including noninterest-bearing 0.76  0.28  0.17  0.18  0.20 

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

LHI and Deposit Portfolio Composition

  Sep 30,
2022
 Jun 30,
2022
 Mar 31,
2022
 Dec 31,
2021
 Sep 30,
2021
   
  (In thousands, except percentages)
LHI1                    
Commercial $2,740,948  32.1% $2,450,403  30.9% $2,125,900  29.8% $2,006,876  29.6% $1,793,740  27.1%
Real Estate:                    
Owner occupied commercial (“OOCRE”)  677,705  7.9   646,723  8.2   633,615  8.9   665,537  9.8   711,476  10.7 
Non-owner occupied commercial (“NOOCRE”)  2,273,305  26.7   2,203,970  27.8   2,145,826  30.0   2,120,309  31.3   2,194,438  33.1 
Construction and land  1,673,997  19.6   1,532,997  19.3   1,297,338  18.2   1,062,144  15.7   936,174  14.1 
Farmland  43,569  0.5   47,319  0.6   48,095  0.7   55,827  0.8   73,550  1.1 
1-4 family residential  858,693  10.1   765,260  9.6   604,408  8.5   542,566  8.0   543,518  8.2 
Multi-family residential  252,244  3.0   276,632  3.5   272,250  3.8   310,241  4.6   356,885  5.4 
Consumer  7,465  0.1   7,520  0.1   9,533  0.1   11,998  0.2   14,266  0.3 
Total LHI $8,527,926  100% $7,930,824  100% $7,136,965  100% $6,775,498  100% $6,624,047  100%
                     
MW  523,805     629,291     542,877     565,645     615,045   
PPP loans  2,821     7,339     18,512     53,369     135,842   
                     
Total LHI1 $9,054,552    $8,567,454    $7,698,354    $7,394,512    $7,374,934   
                     
Deposits                    
Noninterest-bearing $2,811,412  32.1% $2,947,830  34.6% $2,765,895  35.1% $2,510,723  34.1% $2,302,925  32.1%
Interest-bearing transaction  603,729  6.9   660,557  7.8   599,580  7.6   579,408  7.9   514,537  7.2 
Money market  3,533,532  40.4   3,217,195  37.8   2,958,790  37.5   2,568,843  34.9   2,585,926  36.0 
Savings  132,407  1.5   129,498  1.5   129,922  1.6   128,061  1.7   127,843  1.8 
Certificates and other time deposits  1,667,364  19.1   1,562,626  18.3   1,435,409  18.2   1,576,580  21.4   1,647,521  22.9 
Total deposits $8,748,444  100% $8,517,706  100% $7,889,596  100% $7,363,615  100% $7,178,752  100%
                     
Loan to Deposit Ratio  103.5%    100.6%    97.6%    100.4%    102.7%  
                     
Loan to Deposit Ratio, excluding MW and PPP loans  97.5%    93.1%    90.5%    92.0%    92.3%  

1 Total LHI does not include deferred fees of $17.5 million, $15.0 million, $11.5 million, $9.5 million and $8.1 million at September 30, 2022, June 30, 2022, March 31, 2022, December 31, 2021 and September 30, 2021, respectively.

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

 For the Quarter Ended For the Nine Months Ended
 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Sep 30, 2022 Sep 30, 2021
      
 (In thousands, except percentages)    
NPAs:             
Nonaccrual loans$30,592  $42,242  $46,680  $49,687  $72,317  $30,592  $72,317 
Accruing loans 90 or more days past due1    1,753   264   441   1,711      1,711 
Total nonperforming loans held for investment (“NPLs”) 30,592   43,995   46,944   50,128   74,028   30,592   74,028 
OREO    1,032   1,062             
Total NPAs$30,592  $45,027  $48,006  $50,128  $74,028  $30,592  $74,028 
              
Charge-offs:             
1-4 family residential$  $  $  $  $(64) $  $(379)
OOCRE (1,061)  (244)  (1,341)  (898)  (813)  (2,646)  (1,502)
NOOCRE (838)     (553)  (7,936)     (1,391)   
Commercial (460)  (528)  (3,294)  (4,114)  (5,508)  (4,282)  (11,462)
Consumer (19)  (1,091)  (134)  (44)  (17)  (1,244)  (55)
Total charge-offs (2,378)  (1,863)  (5,322)  (12,992)  (6,402)  (9,563)  (13,398)
              
Recoveries:             
1-4 family residential 4   3      6   26   7   58 
OOCRE    245            245   500 
NOOCRE 3   93   400         496    
Commercial 177   572   144   61   596   893   1,481 
Consumer 5   41   9   257   8   55   46 
Total recoveries 189   954   553   324   630   1,696   2,085 
              
Net charge-offs$(2,189) $(909) $(4,769) $(12,668) $(5,772) $(7,867) $(11,313)
              
              
ACL$85,037  $80,576  $72,485  $77,754  $93,771  $85,037  $93,771 
              
Asset Quality Ratios:             
NPAs to total assets 0.26%  0.40%  0.46%  0.51%  0.77%  0.26%  0.77%
NPLs to total LHI, excluding MW and PPP loans 0.36   0.55   0.66   0.74   1.12   0.36   1.12 
ACL to total LHI, excluding MW and PPP loans 1.00   1.02   1.02   1.15   1.42   1.00   1.42 
Net charge-offs to average loans outstanding 0.03   0.01   0.07   0.19   0.09   0.10   0.18 

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

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

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

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

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

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

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

  As of
  Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021
   
  (Dollars in thousands, except per share data)
Tangible Common Equity          
Total stockholders' equity $1,411,899  $1,429,442  $1,447,996  $1,315,079  $1,284,160 
Adjustments:          
Goodwill  (404,452)  (404,452)  (404,452)  (403,771)  (370,840)
Core deposit intangibles  (40,684)  (43,122)  (45,560)  (47,998)  (50,436)
Tangible common equity $966,763  $981,868  $997,984  $863,310  $862,884 
Common shares outstanding  53,988   53,951   53,907   49,372   49,229 
           
Book value per common share $26.15  $26.50  $26.86  $26.64  $26.09 
Tangible book value per common share $17.91  $18.20  $18.51  $17.49  $17.53 

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

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

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

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

  As of
  Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021
   
  (Dollars in thousands)
Tangible Common Equity          
Total stockholders' equity $1,411,899  $1,429,442  $1,447,996  $1,315,079  $1,284,160 
Adjustments:          
Goodwill  (404,452)  (404,452)  (404,452)  (403,771)  (370,840)
Core deposit intangibles  (40,684)  (43,122)  (45,560)  (47,998)  (50,436)
Tangible common equity $966,763  $981,868  $997,984  $863,310  $862,884 
Tangible Assets          
Total assets $11,714,454  $11,304,811  $10,453,680  $9,757,249  $9,572,300 
Adjustments:          
Goodwill  (404,452)  (404,452)  (404,452)  (403,771)  (370,840)
Core deposit intangibles  (40,684)  (43,122)  (45,560)  (47,998)  (50,436)
Tangible Assets $11,269,318  $10,857,237  $10,003,668  $9,305,480  $9,151,024 
Tangible Common Equity to Tangible Assets  8.58%  9.04%  9.98%  9.28%  9.43%

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 Nine Months Ended
  Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Sep 30, 2022 Sep 30, 2021
       
  (Dollars in thousands)    
Net income available for common stockholders adjusted for amortization of core deposit intangibles              
Net income $43,322  $29,626  $33,470  $41,506  $36,835  $106,418  $98,078 
Adjustments:              
Plus: Amortization of core deposit intangibles  2,438   2,438   2,438   2,438   2,438   7,314   7,323 
Less: Tax benefit at the statutory rate  512   512   512   512   512   1,536   1,538 
Net income available for common stockholders adjusted for amortization of core deposit intangibles $45,248  $31,552  $35,396  $43,432  $38,761  $112,196  $103,863 
               
Average Tangible Common Equity              
Total average stockholders' equity $1,453,816  $1,447,377  $1,357,448  $1,301,676  $1,290,528  $1,419,900  $1,256,640 
Adjustments:              
Average goodwill  (404,452)  (404,452)  (404,014)  (393,220)  (370,840)  (404,308)  (370,840)
Average core deposit intangibles  (42,230)  (44,720)  (47,158)  (49,596)  (52,043)  (41,470)  (54,458)
Average tangible common equity $1,007,134  $998,205  $906,276  $858,860  $867,645  $974,122  $831,342 
Return on Average Tangible Common Equity (Annualized)  17.82%  12.68%  15.84%  20.06%  17.72%  15.40%  16.70%

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

Operating Earnings, Pre-tax, Pre-provision Operating Earnings and performance metrics calculated using Operating Earnings and Pre-tax, Pre-provision Operating Earnings, including Diluted Operating Earnings per Share, Operating Return on Average Assets, Pre-tax, Pre-Provision Operating Return on Average Assets, Operating Return on Average Tangible Common Equity and Operating Efficiency Ratio. Operating earnings, pre-tax, pre-provision operating earnings and the performance metrics calculated using these metrics, listed below, are non-GAAP measures used by management to evaluate the Company’s financial performance. We calculate (a) operating earnings as net income plus severance payments, plus loss on sale of debt securities AFS, net, less Thrive PPP loan forgiveness income, plus M&A expenses, less tax impact of adjustments, plus nonrecurring tax adjustments. We calculate (b) diluted operating earnings per share as operating earnings as described in clause (a) divided by weighted average diluted shares outstanding. We calculate (c) pre-tax, pre-provision operating earnings as operating earnings as described in clause (a) plus provision for income taxes, plus provision (benefit) for credit losses and unfunded commitments. We calculate (d) pre-tax, pre-provision operating return on average assets as pre-tax, pre-provision operating earnings as described in clause (a) divided by total average assets. We calculate (e) operating return on average assets as operating earnings as described in clause (a) divided by total average assets. We calculate (f) operating return on average tangible common equity as operating earnings as described in clause (a), adjusted for the amortization of intangibles and tax benefit at the statutory rate, divided by total average tangible common equity (average stockholders’ equity less average goodwill and average core deposit intangibles, net of accumulated amortization). We calculate (g) operating efficiency ratio as 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 Nine Months Ended
  Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Sep 30, 2022 Sep 30, 2021
   
  (Dollars in thousands, except per share data)
Operating Earnings              
Net income $43,322 $29,626 $33,470 $41,506  $36,835 $106,418 $98,078
               
Plus: Severance payments1               627
Plus: Loss on sale of debt securities AFS, net           188    188
Less: Thrive PPP loan forgiveness income2           1,912    1,912
Plus: M&A expenses  384  295  700  826     1,379  
Operating pre-tax income  43,706  29,921  34,170  42,332   35,111  107,797  96,981
Less: Tax impact of adjustments  81  66  156  (78)  39  303  170
Plus: Nonrecurring tax adjustments3               426
Operating earnings $43,625 $29,855 $34,014 $42,410  $35,072 $107,494 $97,237
               
Weighted average diluted shares outstanding  54,633  54,646  51,571  50,441   50,306  53,655  50,230
Diluted EPS $0.79 $0.54 $0.65 $0.82  $0.73 $1.98 $1.95
Diluted operating EPS $0.80 $0.55 $0.66 $0.84  $0.70 $2.00 $1.94

1 Severance payments relate to branch restructurings made during the three months ended June 30, 2021.
2 During the third quarter of 2021, Thrive’s PPP loan with another bank was 100% forgiven by the Small Business Administration. As a result of our 49% investment in Thrive, the $1.9 million represents our portion of the PPP loan forgiveness. PPP fee income is not taxable and as such has no tax impact.
3 A nonrecurring tax adjustment of $426 thousand recorded in the first quarter of 2021 was due to a true-up of a deferred tax liability.

  For the Quarter Ended For the Nine Months Ended
  Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Sep 30, 2022 Sep 30, 2021
   
  (Dollars in thousands)
Pre-Tax, Pre-Provision Operating Earnings              
Net income $43,322  $29,626  $33,470  $41,506  $36,835  $106,418  $98,078 
Plus: Provision for income taxes  12,248   8,079   8,102   10,697   9,195   28,429   26,025 
Plus: Provision (benefit) for credit losses and unfunded commitments  7,500   9,000   (7)  (4,389)  (448)  16,493   (441)
Plus: Severance payments                    627 
Plus: Loss on sale of debt securities AFS, net              188      188 
Less: Thrive PPP loan forgiveness income              1,912     1,912 
Plus: M&A expenses  384   295   700   826      1,379    
Pre-tax, pre-provision operating earnings $63,454  $47,000  $42,265  $48,640  $43,858  $152,719  $122,565 
               
Average total assets $11,460,857  $10,711,663  $9,998,922  $9,788,671  $9,385,470  $10,729,169  $9,217,649 
Pre-tax, pre-provision operating return on average assets1  2.20%  1.76%  1.71%  1.97%  1.85%  1.90%  1.78%
               
Average total assets $11,460,857  $10,711,663  $9,998,922  $9,788,671  $9,385,470  $10,729,169  $9,217,649 
Return on average assets1  1.50%  1.11%  1.36%  1.68%  1.56%  1.33%  1.42%
Operating return on average assets1  1.51   1.12   1.38   1.72   1.48   1.34   1.41 
               
Operating earnings adjusted for amortization of core deposit intangibles              
Operating earnings $43,625  $29,855  $34,014  $42,410  $35,072  $107,494  $97,237 
Adjustments:              
Plus: Amortization of core deposit intangibles  2,438   2,438   2,438   2,438   2,438   7,314   7,323 
Less: Tax benefit at the statutory rate  512   512   512   512   512   1,536   1,538 
Operating earnings adjusted for amortization of core deposit intangibles $45,551  $31,781  $35,940  $44,336  $36,998  $113,272  $103,022 
               
Average Tangible Common Equity              
Total average stockholders' equity $1,453,816  $1,447,377  $1,357,448  $1,301,676  $1,290,528  $1,419,900  $1,256,640 
Adjustments:              
Less: Average goodwill  (404,452)  (404,452)  (404,014)  (393,220)  (370,840)  (404,308)  (370,840)
Less: Average core deposit intangibles  (42,230)  (44,720)  (47,158)  (49,596)  (52,043)  (41,470)  (54,458)
Average tangible common equity $1,007,134  $998,205  $906,276  $858,860  $867,645  $974,122  $831,342 
Operating return on average tangible common equity1  17.94%  12.77%  16.08%  20.48%  16.92%  15.55%  16.57%
               
Efficiency ratio  44.71%  50.76%  52.84%  48.53%  47.55%  49.05%  49.79%
Net interest income $101,040  $84,480  $73,040  $76,741  $71,276  $258,560  $204,042 
Noninterest income  13,021   10,378   15,097   16,150   15,627   38,496   42,255 
Plus: Loss on sale of AFS securities, net              188      188 
Less: Thrive PPP loan forgiveness income              1,912      1,912 
Operating noninterest income  13,021   10,378   15,097   16,150   13,903   38,496   40,531 
Noninterest expense  50,991   48,153   46,572   45,077   41,321   145,716   122,635 
Less: Severance payments                    627 
Less: M&A expenses  384   295   700   826      1,379    
Operating noninterest expense $50,607  $47,858  $45,872  $44,251  $41,321  $144,337  $122,008 
Operating efficiency ratio  44.37%  50.45%  52.05%  47.64%  48.51%  48.59%  49.89%

1 Annualized ratio for quarterly metrics.


Media and Investor Relations:
investorrelations@veritexbank.com

Primary Logo

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.