Veritex Holdings, Inc Reports Second Quarter Operating Results.

DALLAS: 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, 2023.

"I am incredibly pleased with our second quarter and year to date results," said C. Malcolm Holland, III. "We increased our deposits by $200 million with only 1% in brokered, grew capital by $32 million, expanded our CET1 ratio by 44 basis points and decreased our commercial real estate exposure. We continue to see positive results in all these areas as we progress through the start of the third quarter."

Quarter to Date

Year to Date

Financial Highlights

Q2 2023

Q1 2023

Q2 2023

Q2 2022

(Dollars in thousands, except per share data)

(unaudited)

GAAP

Net income

$

33,730

$

38,411

$

72,141

$

63,096

Diluted EPS

0.62

0.70

1.32

1.19

Book value per common share

27.48

27.54

27.48

26.50

Return on average assets2

1.10

%

1.28

%

1.18

%

1.23

%

Efficiency ratio

49.94

48.42

49.17

51.76

Return on average equity2

8.96

10.55

9.74

9.07

Non-GAAP1

Operating earnings

$

34,673

$

43,274

$

77,947

$

63,869

Diluted operating EPS

0.64

0.79

1.43

1.20

Tangible book value per common share

19.41

19.43

19.41

18.20

Pre-tax, pre-provision operating earnings

58,520

66,461

124,981

89,265

Pre-tax, pre-provision operating return on average assets2

1.90

%

2.21

%

2.05

%

1.74

%

Pre-tax, pre-provision operating return on average loans2

2.43

2.84

2.63

2.34

Operating return on average assets2

1.13

1.44

1.28

1.24

Operating efficiency ratio

48.90

45.63

47.21

51.22

Return on average tangible common equity2

13.35

15.81

14.55

14.17

Operating return on average tangible common equity2

13.70

17.72

15.66

14.34

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

2 Annualized ratio.

Other Second Quarter Results

Total deposits increased by $199.2 million, or 8.8% annualized;

Loan to deposit ratio has decreased 3% from March 31, 2023;

Uninsured and uncollateralized deposits decreased to 33.3% as of June 30, 2023 compared to 36.5% as of March 31, 2023;

Common Equity Tier 1 increased 44 basis points to 9.76% driven by a decrease in risk-weighted assets;

Acquisition, development, and construction ("ADC") loans decreased 9.3% from March 31, 2023 and as a percentage of risk-based capital ("RBC") decreased from 129.2% to 115.1%;

Total ADC/CRE loans decreased 0.2% from March 31, 2023 and as a percentage of RBC decreased from 333.7% to 327.2%;

ACL to total loans increased to 1.05%;

Non-performing assets ("NPAs") to total assets increased to 0.55%, or 20 bps, from March 31, 2023;

Annualized net charge-offs to average loans outstanding were 48 bps for the second quarter of 2023 compared to 4 bps for the three months ended March 31, 2023; and

Declared quarterly cash...