EX-99.1 2 a2024annual-exhibit991q4.htm EX-99.1 Document
Exhibit 99.1

VERITEX HOLDINGS, INC. REPORTS FOURTH QUARTER AND FULL YEAR 2024 RESULTS


Dallas, TX — January 28, 2025 —Veritex Holdings, Inc. (“Veritex”, the “Company”, “we” or “our”) (Nasdaq: VBTX), the holding company for Veritex Community Bank, today announced the results for the fourth quarter and full year of 2024.

“We achieved significant milestones during 2024 as we improved our credit risk profile and strengthened and completed our balance sheet remake,” said C. Malcolm Holland, III, the Company’s Chairman and Chief Executive Officer. “My team and I are committed to continue to drive execution of our strategic plan in 2025. Now it’s back to what we do best; grow profitability.”

2024 Highlights:

•Operating EPS was $2.17 for 2024;
•Criticized loans decreased approximately $100 million during 2024;
•Commercial real estate concentrations decreased from 320.2% for the year ended 2023 to 298.9% for the year ended 2024;
•Nonperforming assets to total loans decreased 15 basis points to 0.62% from 2023;
•Loan to deposit ratio decreased to 89.3% as of December 31, 2024 compared to 93.6% as of December 31, 2023;
•Total deposits grew $414.4 million, or 4.0%, year-over-year;
•Common equity tier 1 capital increased 80 bps to 11.09% as of December 31, 2024 compared to 10.29% as of December 31, 2023;
•Tangible book value per common share increased 6.9%, or $1.40, during 2024 compared to 2023;
•Allowance for credit losses (“ACL”) to total loans increased to 1.18%, or 4 bps, from 1.14% as of December 31, 2023;
•Declared quarterly cash dividend of $0.20 per share of outstanding common stock payable on February 28, 2025;.and
•Named one of the “Best Companies to Work For” by the 2024 Inaugural U.S. News & World Report which evaluates companies based on quality of pay, work/life balance, and opportunities for professional development and advancement.
Quarter to DateFull Year
Financial Highlights
Q4 2024Q3 2024Q4 202320242023
(Dollars in thousands, except per share data)
(unaudited)
GAAP  
Net income$24,882 $31,001 $3,499 $107,241 $108,261 
Diluted EPS0.45 0.56 0.06 1.95 1.98 
Book value per common share29.37 29.53 28.18 29.37 28.18 
Return on average assets1
0.78 %0.96 %0.11 %0.85 %0.88 %
Return on average equity1
6.17 7.79 0.92 6.85 7.21 
Net interest margin3.20 3.30 3.31 3.26 3.49 
Efficiency ratio67.04 61.94 77.49 62.62 55.82 
Non-GAAP2
Operating earnings$29,769 $32,181 $31,625 $119,397 $142,114 
Diluted operating EPS0.54 0.59 0.58 2.17 2.60 
Tangible book value per common share21.61 21.72 20.21 21.61 20.21 
Pre-tax, pre-provision operating earnings40,945 44,555 47,688 173,576 222,211 
Pre-tax, pre-provision operating return on average assets1
1.28 %1.38 %1.54 %1.37 %1.81 %
Pre-tax, pre-provision operating return on average loans1
1.72 1.83 1.97 1.81 2.32 
Operating return on average assets1
0.93 1.00 1.02 0.95 1.16 
Return on average tangible common equity1
9.04 11.33 2.00 10.10 10.91 
Operating return on average tangible common equity1
10.69 11.74 12.37 11.17 14.09 
Operating efficiency ratio62.98 60.63 55.50 60.22 50.94 
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.

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Results of Operations for the Three Months Ended December 31, 2024
 
Net Interest Income

For the three months ended December 31, 2024, net interest income before provision for credit losses was $96.1 million and net interest margin was 3.20%, compared to $100.1 million and 3.30%, respectively, for the three months ended September 30, 2024. The $3.9 million decrease, or 3.9%, in net interest income before provision for credit losses was primarily due to a $12.3 million decrease in interest income on loans primarily driven by a decrease in loan yields and average loan balances. This decrease was partially offset by a $1.1 million increase in interest income on debt securities, $6.0 million decrease in interest expense on certificates and other time deposits, $2.4 million decrease in interest expense on transaction and savings deposits during the three months ended December 31, 2024. Net interest margin decreased 10 bps from the three months ended September 30, 2024, primarily due to the decrease in loan yields during the three months ended December 31, 2024, partially offset by an increase in yields on debt securities.
Compared to the three months ended December 31, 2023, net interest income before provision for credit losses for the three months ended December 31, 2024 increased by $608 thousand, or 0.6%. The increase was primarily due to a $4.6 million increase in interest income on debt securities, a $3.7 million increase in interest income in deposits in financial institutions and fed funds sold, a $2.5 million decrease in interest expense on advances from FHLB and a $1.4 million decrease in transaction and savings deposits driven by an decrease in funding costs. The increase in net interest income was partially offset by a $10.4 million decrease in interest income on loans driven by a decrease in loan yields and average balances. Net interest margin decreased 11 bps to 3.20% for the three months ended December 31, 2024 from 3.31% for the three months ended December 31, 2023. The decrease was primarily due to the decrease in loan yields during the three months ended December 31, 2024.
Noninterest Income (Loss)
Noninterest income for the three months ended December 31, 2024 was $10.1 million, a decrease of $3.1 million, or 23.3%, compared to noninterest income of $13.1 million for the three months ended September 30, 2024. The decrease in noninterest income was primarily due to a $4.4 million loss on sales of debt securities as a result of a strategic restructuring in which we sold $188.9 million of lower-yielding AFS securities, at amortized cost, with a 3.89% average yield, and reinvested the proceeds in higher yielding AFS securities with a 5.67% average yield. The decrease was also the result of a decrease of $852 thousand of OREO income, higher amortization of our servicing assets of $829 thousand and a decrease of $681 thousand due to the change in the value of equity securities. The decrease was partially offset by an increase of $4.6 million increase in government guaranteed loan income.
Compared to the three months ended December 31, 2023, noninterest income for the three months ended December 31, 2024 increased $27.8 million, or 156.5%. The increase was primarily due to a $29.4 million loss on equity method investment income related to the write down of our equity method investment in Thrive during the three months ended December 31, 2023 with no corresponding loss recorded during the three months ended December 31, 2024. The Company has no remaining equity method investment in Thrive.
Noninterest Expense
Noninterest expense was $71.2 million for the three months ended December 31, 2024, compared to $70.1 million for the three months ended September 30, 2024, a increase of $1.1 million, or 1.6%. Changes within noninterest expenses items were nominal.
Noninterest expense was $71.2 million for the three months ended December 31, 2024, compared to $60.2 million for the three months ended December 31, 2023, an increase of $11.0 million, or 18.2%. The increase was primarily driven by a $6.8 million increase in salary and employee benefits, a $4.1 million increase in other expenses, a $1.2 million increase in data processing and software expenses, and a $951 thousand increase in marketing expenses. The increase was partially offset by a $2.1 million decrease in professional and regulatory fees.

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Financial Condition
Total loans held for investment (“LHI”) was $8.90 billion at December 31, 2024, a decrease of $129.4 million, compared to September 30, 2024, and a decrease of $307.4 million, or 3.3%, compared to December 31, 2023.
Total deposits were $10.75 billion at December 31, 2024, an decrease of $283.4 million compared to September 30, 2024, and an increase of $414.4 million, or 4.0%, compared to December 31, 2023. The decrease from September 30, 2024 was primarily the result of a decrease of $667.1 million in certificates and other time deposits, a decrease of $452.4 million in noninterest-bearing deposits, and a decrease of $20.4 million in correspondent money market accounts. The decrease was partially offset by a increase of $856.4 million in interest-bearing transaction, money market, and savings deposits. The increase from December 31, 2023 was primarily the result of an increase in attractive deposits which consisted of $712.8 million in interest-bearing transaction, money market, and savings deposits. The increase was partially offset by a $232.9 million decrease in certificates and other time deposits, a $38.9 million decrease in correspondent money market accounts, and a $26.6 million decrease in non-interest bearing deposits.
Credit Quality
Nonperforming assets (“NPAs”) increased to $79.2 million, or 0.62% of total assets, at December 31, 2024, compared to $67.3 million, or 0.52% of total assets, at September 30, 2024. Net charge-offs compared to average loans outstanding were 21 bps for the year ended December 31, 2024, compared to 25 bps for year ended December 31, 2023.
ACL as a percentage of LHI was 1.18%, 1.21%, and 1.14% at December 31, 2024, September 30, 2024, and December 31, 2023, respectively. The Company recorded a provision for credit losses of $2.3 million for the three months ended December 31, 2024, compared to a provision for credit losses of $4.0 million and $9.5 million for the three months ended September 30, 2024 and December 31, 2023, respectively. The recorded provision for credit losses reported for the three months ended December 31, 2024, compared to the three months ended December 31, 2023 was primarily attributable to a decrease in the overall loans held for investment balances and changes in general reserves as a result of changes in economic factors. The Company recorded a benefit for unfunded commitments of $401 thousand and $1.5 million during the three months ended December 31, 2024, and December 31, 2023, respectively. There was no provision for unfunded commitments recorded during the three months ended in September 30, 2024. The decrease in the recorded benefit for unfunded commitments during the three months ended December 31, 2024, compared to the three months ended September 30, 2024, was primarily attributable to changes in the economic factors applied to unfunded commitment balances.

Dividend Information
On January 28, 2025, 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 February 28, 2025 to stockholders of record as of the close of business on February 14, 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, 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.
Conference Call
The Company will host an investor conference call to review the results on Wednesday, January 29, 2025 at 8:30 a.m. Central Time. Participants may pre-register for the call by visiting https://edge.media-server.com/mmc/p/8uwctr48 and will receive a unique PIN, which can be used when dialing in for the call.

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Participants may also register via teleconference at:
https://register.vevent.com/register/BIf4f4afb9195448ba90575ac59fb337bc. 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.
Media and Investor Relations:
investorrelations@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’s quarterly cash dividend; the impact of certain changes in Veritex’s accounting policies, standards and interpretations; a continuation of recent turmoil in the banking industry, responsive measures to mitigate and manage it and related supervisory and regulatory actions and costs 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, 2023 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.

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VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Financial Highlights
(Unaudited)
 For the Quarter EndedFor the Year Ended
Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Dec 31, 2024Dec 31, 2023
(Dollars and shares in thousands, except per-share data)
Per Share Data (Common Stock):
Basic EPS$0.46 $0.57 $0.50 $0.44 $0.06 $1.97 $2.00 
Diluted EPS0.45 0.56 0.50 0.44 0.06 1.95 1.98 
Book value per common share29.37 29.53 28.49 28.23 28.18 29.37 28.18 
Tangible book value per common share1
21.61 21.72 20.62 20.33 20.21 21.61 20.21 
Dividends paid per common share outstanding2
0.20 0.20 0.20 0.20 0.20 0.80 0.80 
Common Stock Data:
Shares outstanding at period end54,517 54,446 54,350 54,496 54,338 54,517 54,338 
Weighted average basic shares outstanding for the period54,489 54,409 54,457 54,444 54,327 54,450 54,256 
Weighted average diluted shares outstanding for the period55,237 54,932 54,823 54,842 54,691 54,958 54,596 
Summary of Credit Ratios:
ACL to total LHI1.18 %1.21 %1.16 %1.15 %1.14 %1.18 %1.14 %
NPAs to total assets0.62 0.52 0.65 0.82 0.77 0.62 0.77 
NPAs to total loans and OREO0.83 0.70 0.85 1.06 1.00 0.83 1.00 
Net charge-offs to average loans outstanding3
0.32 0.01 0.28 0.22 0.40 0.21 0.25 
Summary Performance Ratios:   
Return on average assets3
0.78 %0.96 %0.87 %0.79 %0.11 %0.85 %0.88 %
Return on average equity3
6.17 7.79 7.10 6.33 0.92 6.85 7.21 
Return on average tangible common equity1, 3
9.04 11.33 10.54 9.52 2.00 10.10 10.91 
Efficiency ratio67.04 61.94 59.11 62.45 77.49 62.62 55.82 
Net interest margin3.20 3.30 3.29 3.24 3.31 3.26 3.49 
Selected Performance Metrics - Operating:
Diluted operating EPS1
$0.54 $0.59 $0.52 $0.53 $0.58 $2.17 $2.60 
Pre-tax, pre-provision operating return on average assets1, 3
1.28 %1.38 %1.42 %1.42 %1.54 %1.37 %1.81 %
Pre-tax, pre-provision operating return on average loans1, 3
1.72 1.83 1.83 1.84 1.97 1.81 2.32 
Operating return on average assets1,3
0.93 1.00 0.91 0.95 1.02 0.95 1.16 
Operating return on average tangible common equity1,3
10.69 11.74 10.94 11.34 12.37 11.17 14.09 
Operating efficiency ratio1
62.98 60.63 58.41 58.73 55.50 60.22 50.94 
Risk weighted assets$11,247,813 $11,290,800 $11,450,997 $11,407,446 $11,387,825 $11,247,813 $11,387,825 
Veritex Holdings, Inc. Capital Ratios:   
Average stockholders' equity to average total assets12.58 %12.31 %12.26 %12.43 %12.27 %12.40 %12.22 %
Tangible common equity to tangible assets1
9.54 9.37 9.14 9.02 9.18 9.54 9.18 
Tier 1 capital to average assets (leverage)10.32 10.06 10.06 10.12 10.03 10.32 10.03 
Common equity tier 1 capital11.09 10.86 10.49 10.37 10.29 11.09 10.29 
Tier 1 capital to risk-weighted assets11.36 11.13 10.75 10.63 10.56 11.36 10.56 
Total capital to risk-weighted assets13.96 13.91 13.45 13.33 13.18 13.96 13.18 
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.
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VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Financial Highlights
(In thousands)
Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023
(unaudited)(unaudited)(unaudited)(unaudited)
ASSETS    
Cash and due from banks$52,486 $54,165 $53,462 $41,884 $58,914 
Interest bearing deposits in other banks802,714 1,046,625 598,375 698,885 570,149 
Cash and cash equivalents$855,200 $1,100,790 $651,837 $740,769 $629,063 
Debt securities, net1,478,538 1,423,610 1,349,354 1,344,930 1,257,042 
Other investments69,638 71,257 75,885 76,788 76,238 
Loans held for sale ("LHFS")89,309 48,496 57,046 64,762 79,072 
LHI, mortgage warehouse ("MW")605,411 630,650 568,047 449,531 377,796 
LHI, excluding MW8,899,133 9,028,575 9,209,094 9,249,551 9,206,544 
Total loans9,593,853 9,707,721 9,834,187 9,763,844 9,663,412 
ACL(111,745)(117,162)(113,431)(112,032)(109,816)
Bank-owned life insurance85,324 84,776 84,233 85,359 84,833 
Bank premises, furniture and equipment, net113,480 114,202 105,222 105,299 105,727 
Other real estate owned ("OREO")24,737 9,034 24,256 18,445 — 
Intangible assets, net of accumulated amortization28,664 32,825 35,817 38,679 41,753 
Goodwill404,452 404,452 404,452 404,452 404,452 
Other assets226,200 211,471 232,518 241,863 241,633 
Total assets$12,768,341 $13,042,976 $12,684,330 $12,708,396 $12,394,337 
LIABILITIES AND STOCKHOLDERS’ EQUITY     
Deposits:     
Noninterest-bearing deposits$2,191,457 $2,643,894 $2,416,727 $2,349,211 $2,218,036 
Interest-bearing transaction and savings deposits5,061,157 4,204,708 3,979,454 4,220,114 4,348,385 
Certificates and other time deposits2,958,861 3,625,920 3,744,596 3,486,805 3,191,737 
Correspondent money market deposits541,117 561,489 584,067 597,690 580,037 
Total deposits10,752,592 11,036,011 10,724,844 10,653,820 10,338,195 
Accounts payable and other liabilities183,944 168,415 180,585 186,027 195,036 
Advances from FHLB— — — 100,000 100,000 
Subordinated debentures and subordinated notes230,736 230,536 230,285 230,034 229,783 
Total liabilities11,167,272 11,434,962 11,135,714 11,169,881 10,863,014 
Commitments and contingencies    
Stockholders’ equity:     
Common stock613 613 612 611 610 
Additional paid-in capital1,328,748 1,324,929 1,321,995 1,319,144 1,317,516 
Retained earnings507,903 493,921 473,801 457,499 444,242 
Accumulated other comprehensive loss(65,076)(40,330)(76,713)(71,157)(63,463)
Treasury stock(171,119)(171,119)(171,079)(167,582)(167,582)
Total stockholders’ equity1,601,069 1,608,014 1,548,616 1,538,515 1,531,323 
Total liabilities and stockholders’ equity$12,768,341 $13,042,976 $12,684,330 $12,708,396 $12,394,337 












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VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Financial Highlights
(in thousands, except per share data)
 For the Quarter EndedFor the Year Ended
Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Dec 31, 2024Dec 31, 2023
(unaudited)(unaudited)(unaudited)(unaudited)(unaudited)(unaudited)
Interest income:    
Loans, including fees$154,998 $167,261 $166,979 $161,942 $165,443 $651,180 $648,245 
Debt securities16,893 15,830 15,408 13,695 12,282 61,826 44,364 
Deposits in financial institutions and Fed Funds sold11,888 12,571 7,722 8,050 8,162 40,231 28,331 
Equity securities and other investments940 1,001 1,138 900 1,717 3,979 5,934 
Total interest income184,719 196,663 191,247 184,587 187,604 757,216 726,874 
Interest expense:     
Transaction and savings deposits44,841 47,208 45,619 46,784 46,225 184,452 148,975 
Certificates and other time deposits40,279 46,230 44,811 40,492 40,165 171,812 125,409 
Advances from FHLB130 47 1,468 1,391 2,581 3,036 41,024 
Subordinated debentures and subordinated notes3,328 3,116 3,113 3,114 3,100 12,671 12,352 
Total interest expense88,578 96,601 95,011 91,781 92,071 371,971 327,760 
Net interest income96,141 100,062 96,236 92,806 95,533 385,245 399,114 
Provision for credit losses2,300 4,000 8,250 7,500 9,500 22,050 42,512 
(Benefit) provision for unfunded commitments(401)— — (1,541)(1,500)(1,942)(2,041)
Net interest income after provisions94,242 96,062 87,986 86,847 87,533 365,137 358,643 
Noninterest income:     
Service charges and fees on deposit accounts5,612 5,442 4,974 4,896 4,800 20,924 20,248 
Loan fees2,265 3,278 2,207 2,510 1,200 10,260 6,348 
Loss on sales of debt securities(4,397)— — (6,304)— (10,701)(5,321)
Government guaranteed loan income, net5,368 780 1,320 2,614 4,378 10,082 19,982 
Equity method investment (loss) income— — — — (29,417)— (30,589)
Customer swap income509 271 326 449 258 1,555 1,633 
Other income699 3,335 1,751 2,497 989 8,282 6,804 
Total noninterest income (loss)10,056 13,106 10,578 6,662 (17,792)40,402 19,105 
Noninterest expense:     
Salaries and employee benefits37,446 37,370 32,790 33,365 30,606 140,971 122,070 
Occupancy and equipment4,633 4,789 4,585 4,677 4,670 18,684 19,351 
Professional and regulatory fees5,564 4,903 5,617 6,053 7,626 22,137 26,166 
Data processing and software expense5,741 5,268 5,097 4,856 4,569 20,962 18,539 
Marketing2,896 2,781 1,976 1,546 1,945 9,199 8,704 
Amortization of intangibles2,437 2,438 2,438 2,438 2,438 9,751 9,838 
Telephone and communications323 335 365 261 356 1,284 1,551 
Other12,154 12,216 10,273 8,920 8,028 43,563 27,245 
Total noninterest expense71,194 70,100 63,141 62,116 60,238 266,551 233,464 
Income before income tax expense33,104 39,068 35,423 31,393 9,503 138,988 144,284 
Income tax expense8,222 8,067 8,221 7,237 6,004 31,747 36,023 
Net income$24,882 $31,001 $27,202 $24,156 $3,499 $107,241 $108,261 
Basic EPS$0.46 $0.57 $0.50 $0.44 $0.06 $1.97 $2.00 
Diluted EPS$0.45 $0.56 $0.50 $0.44 $0.06 $1.95 $1.98 
Weighted average basic shares outstanding54,489 54,409 54,457 54,444 54,327 54,450 54,256 
Weighted average diluted shares outstanding55,237 54,932 54,823 54,842 54,691 54,958 54,596 

7





VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Financial Highlights
(Unaudited)
 For the Quarter Ended
 December 31, 2024September 30, 2024December 31, 2023
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
(Dollars in thousands)
Assets         
Interest-earning assets:         
Loans1
$8,957,193 $147,782 6.56 %$9,184,182 $159,163 6.89 %$9,280,439 $161,021 6.88 %
LHI, MW492,372 7,216 5.83 477,592 8,098 6.75 301,345 4,422 5.82 
Debt securities1,458,057 16,893 4.61 1,384,835 15,830 4.55 1,188,776 12,282 4.10 
Interest-earning deposits in other banks971,451 11,888 4.87 924,685 12,571 5.41 587,929 8,162 5.51 
Equity securities and other investments72,223 940 5.18 75,884 1,001 5.25 82,271 1,717 8.28 
Total interest-earning assets11,951,296 184,719 6.15 12,047,178 196,663 6.49 11,440,760 187,604 6.51 
ACL(117,293) (115,510)  (111,937) 
Noninterest-earning assets916,969  930,250   977,811  
Total assets$12,750,972  $12,861,918   $12,306,634  
Liabilities and Stockholders’ Equity     
Interest-bearing liabilities:     
Interest-bearing demand and savings deposits$5,001,159 $44,841 3.57 %$4,700,196 $47,208 4.00 %$4,547,911 $46,225 4.03 %
Certificates and other time deposits3,319,628 40,279 4.83 3,678,718 46,230 5.00 3,285,164 40,165 4.85 
Advances from FHLB and Other10,598 130 4.88 3,261 47 5.73 182,935 2,581 5.60 
Subordinated debentures and subordinated notes230,633 3,328 5.74 230,393 3,116 5.38 229,648 3,100 5.36 
Total interest-bearing liabilities8,562,018 88,578 4.12 8,612,568 96,601 4.46 8,245,658 92,071 4.43 
Noninterest-bearing liabilities:     
Noninterest-bearing deposits2,400,809  2,486,676   2,322,555  
Other liabilities183,810  179,273   228,135  
Total liabilities11,146,637  11,278,517   10,796,348  
Stockholders’ equity1,604,335  1,583,401   1,510,286  
Total liabilities and stockholders’ equity$12,750,972  $12,861,918   $12,306,634  
Net interest rate spread2
2.03 %  2.03 %2.08 %
Net interest income and margin3
$96,141 3.20 % $100,062 3.30 %$95,533 3.31 %

1 Includes average outstanding balances of LHFS of $46.4 million, $54.3 million and $31.2 million for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, 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.
8





VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Financial Highlights
(Unaudited)
 For the Year Ended December 31,
 20242023
Average
Outstanding
Balance		Interest
Earned/
Interest
Paid		Average
Yield/
Rate		Average
Outstanding
Balance		Interest
Earned/
Interest
Paid		Average
Yield/
Rate
(Dollars in thousands)
Assets      
Interest-earning assets:      
Loans1
$9,191,753 $624,853 6.80 %$9,244,070 $628,122 6.79 %
LHI, MW417,985 26,327 6.30 347,596 20,123 5.79 
Debt securities1,372,812 61,826 4.50 1,173,880 44,364 3.78 
Interest-earning deposits in other banks762,569 40,231 5.28 542,959 28,331 5.22 
Equity securities and other investments75,825 3,979 5.25 120,135 5,934 4.94 
Total interest-earning assets11,820,944 757,216 6.41 11,428,640 726,874 6.36 
ACL(115,259)(103,179)
Noninterest-earning assets927,178 957,286 
Total assets$12,632,863 $12,282,747 
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand and savings deposits$4,728,453 $184,452 3.90 $4,197,517 $148,975 3.55 
Certificates and other time deposits3,468,448 171,812 4.95 2,977,178 125,409 4.21 
Advances from FHLB and Other55,109 3,036 5.51 873,617 41,024 4.70 
Subordinated debentures and subordinated notes230,264 12,671 5.50 229,268 12,352 5.39 
Total interest-bearing liabilities8,482,274 371,971 4.39 8,277,580 327,760 3.96 
Noninterest-bearing liabilities:
Noninterest-bearing deposits2,397,681 2,309,983 
Other liabilities186,951 193,659 
Total liabilities11,066,906 10,781,222 
Stockholders’ equity1,565,957 1,501,525 
Total liabilities and stockholders’ equity$12,632,863 $12,282,747 
Net interest rate spread2
2.02 %2.40 %
Net interest income and margin3
$385,245 3.26 %$399,114 3.49 %

1Includes average outstanding balances of LHFS of $53.3 million and $25.7 million for the twelve months ended December 31, 2024 and 2023, 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.

9





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

Yield Trend
 For the Quarter Ended
Dec 31,
2024		Sep 30,
2024		Jun 30,
2024		Mar 31,
2024		Dec 31,
2023
Average yield on interest-earning assets:   
Loans1
6.56 %6.89 %6.90 %6.83 %6.88 %
LHI, MW5.83 6.75 6.36 6.27 5.82 
Total loans6.53 6.89 6.88 6.81 6.85 
Debt securities4.61 4.55 4.58 4.25 4.10 
Interest-bearing deposits in other banks4.87 5.41 5.54 5.54 5.51 
Equity securities and other investments5.18 5.25 5.80 4.75 8.28 
Total interest-earning assets6.15 %6.49 %6.54 %6.44 %6.51 %
Average rate on interest-bearing liabilities:
Interest-bearing demand and savings deposits3.57 %4.00 %4.01 %4.06 %4.03 %
Certificates and other time deposits4.83 5.00 5.02 4.96 4.85 
Advances from FHLB 4.88 5.73 5.54 5.54 5.60 
Subordinated debentures and subordinated notes5.74 5.38 5.44 5.45 5.36 
Total interest-bearing liabilities4.12 %4.46 %4.50 %4.47 %4.43 %
Net interest rate spread2
2.03 %2.03 %2.04 %1.97 %2.08 %
Net interest margin3
3.20 %3.30 %3.29 %3.24 %3.31 %
1 Includes average outstanding balances of LHFS of $46.4 million, $54.3 million, $58.5 million, $53.9 million and $31.2 million for the three months ended December 31, 2024, September 30, 2024, June 30, 2024, March 31, 2024 and December 31, 2023, 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 EndedFor the Year Ended
Dec 31,
2024		Sep 30,
2024		Jun 30,
2024		Mar 31,
2024		Dec 31,
2023		Dec 31,
2024		Dec 31,
2023
Average cost of interest-bearing deposits4.07 %4.44 %4.46 %4.43 %4.38 %4.35 %3.82 %
Average costs of total deposits, including noninterest-bearing3.16 3.42 3.46 3.42 3.37 3.36 2.89 


10





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

LHI and Deposit Portfolio Composition
Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023
(In thousands, except percentages)
LHI1
Commercial and Industrial ("C&I")$2,693,538 30.2 %$2,728,544 30.2 %$2,798,260 30.4 %$2,785,987 30.1 %$2,752,063 29.9 %
Real Estate:
Owner occupied commercial ("OOCRE")780,003 8.8 807,223 8.9 806,285 8.7 788,376 8.5 794,088 8.6 
Non-owner occupied commercial ("NOOCRE")2,382,499 26.7 2,338,094 25.9 2,369,848 25.7 2,352,993 25.5 2,350,725 25.5 
Construction and land1,303,711 14.7 1,436,540 15.8 1,536,580 16.7 1,568,257 16.9 1,734,254 18.8 
Farmland31,690 0.4 32,254 0.4 30,512 0.3 30,979 0.3 31,114 0.3 
1-4 family residential957,341 10.7 944,755 10.5 917,402 10.0 969,401 10.5 937,119 10.2 
Multi-family residential750,218 8.4 738,090 8.2 748,740 8.1 751,607 8.1 605,817 6.6 
Consumer9,115 0.1 11,292 0.1 9,245 0.1 8,882 0.1 10,149 0.1 
Total LHI1
$8,908,115 100 %$9,036,792 100 %$9,216,872 100 %$9,256,482 100 %$9,215,329 100 %
MW605,411 630,650 568,047 449,531 377,796 
Total LHI1
$9,513,526 $9,667,442 $9,784,919 $9,706,013 $9,593,125 
Total LHFS89,309 48,496 57,046 64,762 79,072 
Total loans$9,602,835 $9,715,938 $9,841,965 $9,770,775 $9,672,197 
Deposits
Noninterest-bearing$2,191,457 20.4 %$2,643,894 24.0 %$2,416,727 22.5 %$2,349,211 22.1 %$2,218,036 21.5 %
Interest-bearing transaction839,005 7.8 421,059 3.8 523,272 4.9 724,171 6.8 927,193 8.9 
Money market3,772,964 35.1 3,462,709 31.4 3,268,286 30.5 3,326,742 31.2 3,284,324 31.8 
Savings449,188 4.2 320,940 2.9 187,896 1.8 169,201 1.6 136,868 1.3 
Certificates and other time deposits2,958,861 27.5 3,625,920 32.8 3,744,596 34.9 3,486,805 32.7 3,191,737 30.9 
Correspondent money market account541,117 5.0 561,489 5.1 584,067 5.4 597,690 5.6 580,037 5.6 
Total deposits$10,752,592 100 %$11,036,011 100 %$10,724,844 100 %$10,653,820 100 %$10,338,195 100 %
Total loans to total deposits ratio89.3 %88.0 %91.8 %91.7 %93.6 %
Total loans to Deposit Ratio, excluding MW loans and LHFS82.8 %81.9 %85.9 %86.9 %89.1 %

1 Total LHI does not include deferred costs of $9.0 million, $8.2 million, $7.8 million, $6.9 million and $8.8 million at December 31, 2024, September 30, 2024, June 30, 2024, March 31, 2024 and December 31, 2023, respectively.

11





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

Asset Quality
 For the Quarter EndedFor the Year Ended
Dec 31,
2024		Sep 30,
2024		Jun 30,
2024		Mar 31,
2024		Dec 31,
2023		Dec 31,
2024		Dec 31,
2023
(In thousands, except percentages)
NPAs:    
Nonaccrual loans$52,521 $55,335 $58,537 $75,721 $79,133 $52,521 $79,133 
Nonaccrual PCD loans1
— 70 73 9,419 13,715 — 13,715 
Accruing loans 90 or more days past due2
1,914 2,860 143 220 2,975 1,914 2,975 
Total nonperforming loans held for investment ("NPLs")54,435 58,265 58,753 85,360 95,823 54,435 95,823 
Other real estate owned ("OREO")24,737 9,034 24,256 18,445 — 24,737 — 
Total NPAs$79,172 $67,299 $83,009 $103,805 $95,823 $79,172 $95,823 
Charge-offs:
1-4 family residential$— $— $(31)$— $(21)$(31)$(21)
Multifamily— — (198)— (192)(198)(192)
OOCRE— — — (120)(364)(120)(855)
NOOCRE(5,113)— (1,969)(4,293)(5,434)(11,375)(13,649)
C&I(4,586)(2,259)(5,601)(946)(3,893)(13,392)(10,413)
Consumer(420)(54)(30)(71)(33)(575)(236)
Total charge-offs$(10,119)$(2,313)$(7,829)$(5,430)$(9,937)$(25,691)$(25,366)
Recoveries:
1-4 family residential$2 $3 $— $1 $1 $6 $3 
OOCRE— — 120 — — 120 — 
NOOCRE1,323 — — — — 1,323 350 
C&I1,047 1,962 361 96 387 3,466 1,165 
MW46 — — — 46 — 
Consumer30 33 497 49 34 609 100 
Total recoveries$2,402 $2,044 $978 $146 $422 $5,570 $1,618 
Net charge-offs$(7,717)$(269)$(6,851)$(5,284)$(9,515)$(20,121)$(23,748)
Provision for credit losses$2,300 $4,000 $8,250 $7,500 $9,500 $22,050 $42,512 
ACL $111,745 $117,162 $113,431 $112,032 $109,816 $111,745 $109,816 
Asset Quality Ratios:
NPAs to total assets0.62 %0.52 %0.65 %0.82 %0.77 %0.62 %0.77 %
NPAs, excluding nonaccrual PCD loans, to total assets0.62 0.52 0.65 0.74 0.66 0.62 0.66 
 NPAs to total loans and OREO0.83 0.70 0.85 1.06 1.00 0.83 1.00 
NPLs to total LHI0.57 0.60 0.60 0.88 1.00 0.57 1.00 
NPLs, excluding nonaccrual PCD loans, to total LHI0.57 0.60 0.60 0.78 0.86 0.57 0.86 
ACL to total LHI1.18 1.21 1.16 1.15 1.14 1.18 1.14 
ACL to total loans, excluding MW and LHFS1.25 1.30 1.23 1.21 1.19 1.25 1.19 
Net charge-offs to average loans outstanding3
0.32 0.01 0.28 0.22 0.40 0.21 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 PCD loans greater than 90 days past due that are accounted for on a pooled basis.
3Annualized ratio for quarterly metrics.
12





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 per common share 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
Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023
(Dollars in thousands, except per share data)
Tangible Common Equity   
Total stockholders' equity$1,601,069 $1,608,014 $1,548,616 $1,538,515 $1,531,323 
Adjustments:
Goodwill(404,452)(404,452)(404,452)(404,452)(404,452)
Core deposit intangibles(18,744)(21,182)(23,619)(26,057)(28,495)
Tangible common equity$1,177,873 $1,182,380 $1,120,545 $1,108,006 $1,098,376 
Common shares outstanding54,517 54,446 54,350 54,496 54,338 
Book value per common share$29.37 $29.53 $28.49 $28.23 $28.18 
Tangible book value per common share$21.61 $21.72 $20.62 $20.33 $20.21 


13






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
Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023
(Dollars in thousands)
Tangible Common Equity   
Total stockholders' equity$1,601,069 $1,608,014 $1,548,616 $1,538,515 $1,531,323 
Adjustments:
Goodwill(404,452)(404,452)(404,452)(404,452)(404,452)
Core deposit intangibles(18,744)(21,182)(23,619)(26,057)(28,495)
Tangible common equity$1,177,873 $1,182,380 $1,120,545 $1,108,006 $1,098,376 
Tangible Assets
Total assets$12,768,341 $13,042,976 $12,684,330 $12,708,396 $12,394,337 
Adjustments:
Goodwill(404,452)(404,452)(404,452)(404,452)(404,452)
Core deposit intangibles(18,744)(21,182)(23,619)(26,057)(28,495)
Tangible Assets$12,345,145 $12,617,342 $12,256,259 $12,277,887 $11,961,390 
Tangible Common Equity to Tangible Assets9.54 %9.37 %9.14 %9.02 %9.18 %


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 EndedFor the Year Ended
Dec 31,
2024		Sep 30,
2024		Jun 30,
2024		Mar 31,
2024		Dec 31,
2023		Dec 31,
2024		Dec 31,
2023
(Dollars in thousands)
Net income available for common stockholders adjusted for amortization of core deposit intangibles
Net income$24,882 $31,001 $27,202 $24,156 $3,499 $107,241 $108,261 
Adjustments:       
Plus: Amortization of core deposit intangibles2,437 2,438 2,438 2,438 2,438 9,751 9,752 
Less: Tax benefit at the statutory rate512 512 512 512 512 2,048 2,048 
Net income available for common stockholders adjusted for amortization of core deposit intangibles$26,807 $32,927 $29,128 $26,082 $5,425 $114,944 $115,965 
       
Average Tangible Common Equity
Total average stockholders' equity$1,604,335 $1,583,401 $1,541,609 $1,533,868 $1,510,286 $1,565,957 $1,501,525 
Adjustments:      
Average goodwill(404,452)(404,452)(404,452)(404,452)(404,452)(404,452)(404,452)
Average core deposit intangibles(20,342)(22,789)(25,218)(27,656)(30,093)(23,988)(33,718)
Average tangible common equity$1,179,541 $1,156,160 $1,111,939 $1,101,760 $1,075,741 $1,137,517 $1,063,355 
Return on Average Tangible Common Equity (Annualized)9.04 %11.33 %10.54 %9.52 %2.00 %10.10 %10.91 %


15





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 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 equity method investment write-down, plus FDIC special assessment, plus severance payments, plus loss on sale of debt securities AFS, net, 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 benefit (provision) 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 EndedFor the Year Ended
Dec 31,
2024		Sep 30,
2024		Jun 30,
2024		Mar 31,
2024		Dec 31,
2023		Dec 31,
2024		Dec 31,
2023
(Dollars in thousands, except per share data)
Operating Earnings
Net income$24,882 $31,001 $27,202 $24,156 $3,499 $107,241 $108,261 
Plus: Equity method investment write-down— — — — 29,417 — 29,417 
Plus: FDIC special assessment— — 134 — 768 134 768 
Plus: Severance payments1
1,545 1,487 613 — — 3,645 1,950 
Plus: Loss on sale of debt securities AFS, net4,397 — — 6,304 — 10,701 5,321 
Operating pre-tax income30,824 32,488 27,949 30,460 33,684 121,721 145,717 
Less: Tax impact of adjustments1,248 307 166 1,323 2,059 3,044 3,603 
Plus: Nonrecurring tax adjustments193 — 527 — — 720 — 
Operating earnings$29,769 $32,181 $28,310 $29,137 $31,625 $119,397 $142,114 
Weighted average diluted shares outstanding55,237 54,932 54,823 54,842 54,691 54,958 54,596 
Diluted EPS$0.45 $0.56 $0.50 $0.44 $0.06 $1.95 $1.98 
Diluted operating EPS$0.54 $0.59 $0.52 $0.53 $0.58 $2.17 $2.60 
1 Severance payments relate to restructurings made during the periods disclosed.








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 For the Quarter EndedFor the Year Ended
(Dollars in thousands)Dec 31,
2024		Sep 30,
2024		Jun 30,
2024		Mar 31,
2024		Dec 31,
2023		Dec 31,
2024		Dec 31,
2023
Pre-Tax, Pre-Provision Operating Earnings
Net Income $24,882 $31,001 $27,202 $24,156 $3,499 $107,241 $108,261 
Plus: Provision for income taxes8,222 8,067 8,221 7,237 6,004 31,747 36,023 
Plus: Provision for credit losses and unfunded commitments1,899 4,000 8,250 5,959 8,000 20,108 40,471 
Plus: Severance payments1,545 1,487 613 — — 3,645 1,950 
Plus: Loss on sale of AFS, net4,397 — — 6,304 — 10,701 5,321 
Plus: Equity method investment write-down— — — — 29,417 — 29,417 
Plus: FDIC special assessment— — 134 — 768 134 768 
Net pre-tax, pre-provision operating earnings$40,945 $44,555 $44,420 $43,656 $47,688 $173,576 $222,211 
Average total assets$12,750,972 $12,861,918 $12,578,706 $12,336,042 $12,306,634 $12,632,863 $12,282,747 
Pre-tax, pre-provision operating return on average assets1
1.28 %1.38 %1.42 %1.42 %1.54 %1.37 %1.81 %
Average loans$9,449,565 $9,661,774 $9,765,428 $9,563,372 $9,581,784 $9,609,738 $9,591,666 
Pre-tax, pre-provision operating return on average loans1
1.72 %1.83 %1.83 %1.84 %1.97 %1.81 %2.32 %
Average Total Assets$12,750,972 $12,861,918 $12,578,706 $12,336,042 $12,306,634 $12,632,863 $12,282,747 
Return on average assets1
0.78 %0.96 %0.87 %0.79 %0.11 %0.85 %0.88 %
Operating return on average assets1
0.93 1.00 0.91 0.95 1.02 0.95 1.16 
Operating earnings adjusted for amortization of core deposit intangibles
Operating earnings$29,769 $32,181 $28,310 $29,137 $31,625 $119,397 $142,114 
Adjustments:
Plus: Amortization of core deposit intangibles2,437 2,438 2,438 2,438 2,438 9,751 9,752 
Less: Tax benefit at the statutory rate512 512 512 512 512 2,048 2,048 
Operating earnings adjusted for amortization of core deposit intangibles$31,694 $34,107 $30,236 $31,063 $33,551 $127,100 $149,818 
Average Tangible Common Equity
Total average stockholders' equity$1,604,335 $1,583,401 $1,541,609 $1,533,868 $1,510,286 $1,565,957 $1,501,525 
Adjustments:      
Less: Average goodwill(404,452)(404,452)(404,452)(404,452)(404,452)(404,452)(404,452)
Less: Average core deposit intangibles(20,342)(22,789)(25,218)(27,656)(30,093)(23,988)(33,718)
Average tangible common equity$1,179,541 $1,156,160 $1,111,939 $1,101,760 $1,075,741 $1,137,517 $1,063,355 
Operating return on average tangible common equity1
10.69 %11.74 %10.94 %11.34 %12.37 %11.17 %14.09 %
Efficiency ratio67.04 %61.94 %59.11 %62.45 %77.49 %62.62 %55.82 %
Operating efficiency ratio
Net interest income$96,141 $100,062 $96,236 $92,806 $95,533 $385,245 $399,114 
Noninterest income (loss)10,056 13,106 10,578 6,662 (17,792)40,402 19,105 
Plus: Loss on sale of AFS, net4,397 — — 6,304 — 10,701 5,321 
Plus: Equity method investment write-down— — — — 29,417 — 29,417 
Operating noninterest income14,453 13,106 10,578 12,966 11,625 51,103 53,843 
Noninterest expense71,194 70,100 63,141 62,116 60,238 266,551 233,464 
Less: FDIC special assessment— — 134 — 768 134 768 
Less: Severance payments1,545 1,487 613 — — 3,645 1,950 
Operating noninterest expense$69,649 $68,613 $62,394 $62,116 $59,470 $262,772 $230,746 
Operating efficiency ratio62.98 %60.63 %58.41 %58.73 %55.50 %60.22 %50.94 %
1 Annualized ratio for quarterly metrics.
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