Companies: 10,793     total market cap: $139.710 T
โ‚ฌEUR๐Ÿ‡ช๐Ÿ‡บโ‚นINR๐Ÿ‡ฎ๐Ÿ‡ณยฃGBP๐Ÿ‡ฌ๐Ÿ‡ง$CAD๐Ÿ‡จ๐Ÿ‡ฆ$AUD๐Ÿ‡ฆ๐Ÿ‡บ$NZD๐Ÿ‡ณ๐Ÿ‡ฟ$HKD๐Ÿ‡ญ๐Ÿ‡ฐ$SGD๐Ÿ‡ธ๐Ÿ‡ฌ
Veritex Holdings
VBTX
#5135
Rank
$1.65 B
Marketcap
๐Ÿ‡บ๐Ÿ‡ธ United States
Country
$30.26
Share price
0.00%
Change (1 day)
18.85%
Change (1 year)
๐Ÿฆ Banks๐Ÿ’ณ Financial services
Categories
  1. Veritex Holdings
  2. Quarterly Reports (10-Q)
  3. Financial Year FY2024 Q2

Veritex Holdings - 10-Q quarterly report FY2024 Q2


Text size:
0001501570false2024Q2--12-31http://fasb.org/us-gaap/2024#InterestOnlyStripMemberhttp://fasb.org/us-gaap/2024#InterestOnlyStripMemberxbrli:sharesiso4217:USDiso4217:USDxbrli:sharesvbtx:branchvbtx:Securityvbtx:investmentxbrli:purevbtx:Property00015015702024-01-012024-06-3000015015702024-07-3100015015702024-06-3000015015702023-12-3100015015702024-04-012024-06-3000015015702023-04-012023-06-3000015015702023-01-012023-06-300001501570us-gaap:CommonStockMember2024-03-310001501570us-gaap:TreasuryStockCommonMember2024-03-310001501570us-gaap:AdditionalPaidInCapitalMember2024-03-310001501570us-gaap:RetainedEarningsMember2024-03-310001501570us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-3100015015702024-03-310001501570us-gaap:RestrictedStockUnitsRSUMember2024-04-012024-06-300001501570us-gaap:CommonStockMember2024-04-012024-06-300001501570us-gaap:AdditionalPaidInCapitalMember2024-04-012024-06-300001501570us-gaap:TreasuryStockCommonMember2024-04-012024-06-300001501570us-gaap:RetainedEarningsMember2024-04-012024-06-300001501570us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-04-012024-06-300001501570us-gaap:CommonStockMember2024-06-300001501570us-gaap:TreasuryStockCommonMember2024-06-300001501570us-gaap:AdditionalPaidInCapitalMember2024-06-300001501570us-gaap:RetainedEarningsMember2024-06-300001501570us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-06-300001501570us-gaap:CommonStockMember2023-03-310001501570us-gaap:TreasuryStockCommonMember2023-03-310001501570us-gaap:AdditionalPaidInCapitalMember2023-03-310001501570us-gaap:RetainedEarningsMember2023-03-310001501570us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-3100015015702023-03-310001501570us-gaap:RestrictedStockUnitsRSUMember2023-04-012023-06-300001501570us-gaap:CommonStockMember2023-04-012023-06-300001501570us-gaap:AdditionalPaidInCapitalMember2023-04-012023-06-300001501570us-gaap:EmployeeStockOptionMember2023-04-012023-06-300001501570us-gaap:RetainedEarningsMember2023-04-012023-06-300001501570us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-04-012023-06-300001501570us-gaap:CommonStockMember2023-06-300001501570us-gaap:TreasuryStockCommonMember2023-06-300001501570us-gaap:AdditionalPaidInCapitalMember2023-06-300001501570us-gaap:RetainedEarningsMember2023-06-300001501570us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-3000015015702023-06-300001501570us-gaap:CommonStockMember2023-12-310001501570us-gaap:TreasuryStockCommonMember2023-12-310001501570us-gaap:AdditionalPaidInCapitalMember2023-12-310001501570us-gaap:RetainedEarningsMember2023-12-310001501570us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310001501570us-gaap:RestrictedStockUnitsRSUMember2024-01-012024-06-300001501570us-gaap:CommonStockMember2024-01-012024-06-300001501570us-gaap:AdditionalPaidInCapitalMember2024-01-012024-06-300001501570us-gaap:TreasuryStockCommonMember2024-01-012024-06-300001501570us-gaap:RetainedEarningsMember2024-01-012024-06-300001501570us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-06-300001501570us-gaap:CommonStockMember2022-12-310001501570us-gaap:TreasuryStockCommonMember2022-12-310001501570us-gaap:AdditionalPaidInCapitalMember2022-12-310001501570us-gaap:RetainedEarningsMember2022-12-310001501570us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-3100015015702022-12-310001501570us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-06-300001501570us-gaap:CommonStockMember2023-01-012023-06-300001501570us-gaap:AdditionalPaidInCapitalMember2023-01-012023-06-300001501570us-gaap:EmployeeStockOptionMember2023-01-012023-06-300001501570us-gaap:RetainedEarningsMember2023-01-012023-06-300001501570us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-06-300001501570vbtx:DallasFortWorthMember2024-01-012024-06-300001501570vbtx:HoustonMember2024-01-012024-06-300001501570vbtx:DallasFortWorthMember2024-06-300001501570us-gaap:RestrictedStockUnitsRSUMember2024-04-012024-06-300001501570us-gaap:EmployeeStockOptionMember2024-04-012024-06-300001501570us-gaap:RestrictedStockUnitsRSUMember2024-01-012024-06-300001501570us-gaap:EmployeeStockOptionMember2024-01-012024-06-300001501570us-gaap:RestrictedStockUnitsRSUMember2023-04-012023-06-300001501570us-gaap:EmployeeStockOptionMember2023-04-012023-06-300001501570us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-06-300001501570us-gaap:EmployeeStockOptionMember2023-01-012023-06-300001501570us-gaap:CommonStockMember2024-03-280001501570us-gaap:CommonStockMember2024-04-012024-06-300001501570us-gaap:CommonStockMember2023-04-012023-06-300001501570us-gaap:CommonStockMember2024-01-012024-06-300001501570us-gaap:CommonStockMember2023-01-012023-06-300001501570us-gaap:CorporateBondSecuritiesMember2024-06-300001501570us-gaap:USStatesAndPoliticalSubdivisionsMember2024-06-300001501570us-gaap:MortgageBackedSecuritiesMember2024-06-300001501570us-gaap:CollateralizedMortgageObligationsMember2024-06-300001501570us-gaap:AssetBackedSecuritiesMember2024-06-300001501570us-gaap:CollateralizedLoanObligationsMember2024-06-300001501570us-gaap:CorporateBondSecuritiesMember2023-12-310001501570us-gaap:USStatesAndPoliticalSubdivisionsMember2023-12-310001501570us-gaap:MortgageBackedSecuritiesMember2023-12-310001501570us-gaap:CollateralizedMortgageObligationsMember2023-12-310001501570us-gaap:AssetBackedSecuritiesMember2023-12-310001501570us-gaap:CollateralizedLoanObligationsMember2023-12-3100015015702022-01-012022-01-0100015015702022-01-010001501570vbtx:RealEstatePortfolioSegmentMembervbtx:ConstructionAndLandLoanMember2024-06-300001501570vbtx:RealEstatePortfolioSegmentMembervbtx:ConstructionAndLandLoanMember2023-12-310001501570vbtx:RealEstatePortfolioSegmentMembervbtx:FarmlandLoanMember2024-06-300001501570vbtx:RealEstatePortfolioSegmentMembervbtx:FarmlandLoanMember2023-12-310001501570vbtx:RealEstatePortfolioSegmentMembersrt:SingleFamilyMemberus-gaap:RealEstateLoanMember2024-06-300001501570vbtx:RealEstatePortfolioSegmentMembersrt:SingleFamilyMemberus-gaap:RealEstateLoanMember2023-12-310001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:RealEstateLoanMembersrt:MultifamilyMember2024-06-300001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:RealEstateLoanMembersrt:MultifamilyMember2023-12-310001501570us-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMembervbtx:OwnerOccupiedCommercialRealEstateMember2024-06-300001501570us-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMembervbtx:OwnerOccupiedCommercialRealEstateMember2023-12-310001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMember2024-06-300001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMember2023-12-310001501570us-gaap:CommercialPortfolioSegmentMember2024-06-300001501570us-gaap:CommercialPortfolioSegmentMember2023-12-310001501570vbtx:MortgageWarehousePortfolioSegmentMember2024-06-300001501570vbtx:MortgageWarehousePortfolioSegmentMember2023-12-310001501570us-gaap:ConsumerPortfolioSegmentMember2024-06-300001501570us-gaap:ConsumerPortfolioSegmentMember2023-12-3100015015702023-01-012023-12-310001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:RealEstateLoanMember2022-01-012022-12-310001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:RealEstateLoanMember2024-06-300001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:RealEstateLoanMember2023-12-310001501570vbtx:RealEstatePortfolioSegmentMembervbtx:ConstructionAndLandLoanMember2024-03-310001501570vbtx:RealEstatePortfolioSegmentMembervbtx:FarmlandLoanMember2024-03-310001501570vbtx:RealEstatePortfolioSegmentMembersrt:SingleFamilyMemberus-gaap:RealEstateLoanMember2024-03-310001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:RealEstateLoanMembersrt:MultifamilyMember2024-03-310001501570us-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMembervbtx:OwnerOccupiedCommercialRealEstateMember2024-03-310001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMember2024-03-310001501570us-gaap:CommercialPortfolioSegmentMember2024-03-310001501570vbtx:MortgageWarehouseMember2024-03-310001501570us-gaap:ConsumerPortfolioSegmentMember2024-03-310001501570us-gaap:FinancialAssetOtherThanFinancialAssetAcquiredWithCreditDeteriorationMembervbtx:RealEstatePortfolioSegmentMembervbtx:ConstructionAndLandLoanMember2024-04-012024-06-300001501570us-gaap:FinancialAssetOtherThanFinancialAssetAcquiredWithCreditDeteriorationMembervbtx:RealEstatePortfolioSegmentMembervbtx:FarmlandLoanMember2024-04-012024-06-300001501570us-gaap:FinancialAssetOtherThanFinancialAssetAcquiredWithCreditDeteriorationMembervbtx:RealEstatePortfolioSegmentMembersrt:SingleFamilyMemberus-gaap:RealEstateLoanMember2024-04-012024-06-300001501570us-gaap:FinancialAssetOtherThanFinancialAssetAcquiredWithCreditDeteriorationMembervbtx:RealEstatePortfolioSegmentMemberus-gaap:RealEstateLoanMembersrt:MultifamilyMember2024-04-012024-06-300001501570us-gaap:FinancialAssetOtherThanFinancialAssetAcquiredWithCreditDeteriorationMemberus-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMembervbtx:OwnerOccupiedCommercialRealEstateMember2024-04-012024-06-300001501570us-gaap:FinancialAssetOtherThanFinancialAssetAcquiredWithCreditDeteriorationMemberus-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMember2024-04-012024-06-300001501570us-gaap:FinancialAssetOtherThanFinancialAssetAcquiredWithCreditDeteriorationMemberus-gaap:CommercialPortfolioSegmentMember2024-04-012024-06-300001501570us-gaap:FinancialAssetOtherThanFinancialAssetAcquiredWithCreditDeteriorationMembervbtx:MortgageWarehouseMember2024-04-012024-06-300001501570us-gaap:FinancialAssetOtherThanFinancialAssetAcquiredWithCreditDeteriorationMemberus-gaap:ConsumerPortfolioSegmentMember2024-04-012024-06-300001501570us-gaap:FinancialAssetOtherThanFinancialAssetAcquiredWithCreditDeteriorationMember2024-04-012024-06-300001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetAcquiredWithCreditDeteriorationMembervbtx:ConstructionAndLandLoanMember2024-04-012024-06-300001501570vbtx:RealEstatePortfolioSegmentMembervbtx:FarmlandLoanMemberus-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember2024-04-012024-06-300001501570vbtx:RealEstatePortfolioSegmentMembersrt:SingleFamilyMemberus-gaap:FinancialAssetAcquiredWithCreditDeteriorationMemberus-gaap:RealEstateLoanMember2024-04-012024-06-300001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetAcquiredWithCreditDeteriorationMemberus-gaap:RealEstateLoanMembersrt:MultifamilyMember2024-04-012024-06-300001501570us-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMembervbtx:OwnerOccupiedCommercialRealEstateMemberus-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember2024-04-012024-06-300001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember2024-04-012024-06-300001501570us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMemberus-gaap:CommercialPortfolioSegmentMember2024-04-012024-06-300001501570vbtx:MortgageWarehouseMemberus-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember2024-04-012024-06-300001501570us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMemberus-gaap:ConsumerPortfolioSegmentMember2024-04-012024-06-300001501570us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember2024-04-012024-06-300001501570vbtx:RealEstatePortfolioSegmentMembervbtx:ConstructionAndLandLoanMember2024-04-012024-06-300001501570vbtx:RealEstatePortfolioSegmentMembervbtx:FarmlandLoanMember2024-04-012024-06-300001501570vbtx:RealEstatePortfolioSegmentMembersrt:SingleFamilyMemberus-gaap:RealEstateLoanMember2024-04-012024-06-300001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:RealEstateLoanMembersrt:MultifamilyMember2024-04-012024-06-300001501570us-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMembervbtx:OwnerOccupiedCommercialRealEstateMember2024-04-012024-06-300001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMember2024-04-012024-06-300001501570us-gaap:CommercialPortfolioSegmentMember2024-04-012024-06-300001501570vbtx:MortgageWarehouseMember2024-04-012024-06-300001501570us-gaap:ConsumerPortfolioSegmentMember2024-04-012024-06-300001501570vbtx:MortgageWarehouseMember2024-06-300001501570vbtx:RealEstatePortfolioSegmentMembervbtx:ConstructionAndLandLoanMember2023-03-310001501570vbtx:RealEstatePortfolioSegmentMembervbtx:FarmlandLoanMember2023-03-310001501570vbtx:RealEstatePortfolioSegmentMembersrt:SingleFamilyMemberus-gaap:RealEstateLoanMember2023-03-310001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:RealEstateLoanMembersrt:MultifamilyMember2023-03-310001501570us-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMembervbtx:OwnerOccupiedCommercialRealEstateMember2023-03-310001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMember2023-03-310001501570us-gaap:CommercialPortfolioSegmentMember2023-03-310001501570us-gaap:ConsumerPortfolioSegmentMember2023-03-310001501570us-gaap:FinancialAssetOtherThanFinancialAssetAcquiredWithCreditDeteriorationMembervbtx:RealEstatePortfolioSegmentMembervbtx:ConstructionAndLandLoanMember2023-04-012023-06-300001501570us-gaap:FinancialAssetOtherThanFinancialAssetAcquiredWithCreditDeteriorationMembervbtx:RealEstatePortfolioSegmentMembervbtx:FarmlandLoanMember2023-04-012023-06-300001501570us-gaap:FinancialAssetOtherThanFinancialAssetAcquiredWithCreditDeteriorationMembervbtx:RealEstatePortfolioSegmentMembersrt:SingleFamilyMemberus-gaap:RealEstateLoanMember2023-04-012023-06-300001501570us-gaap:FinancialAssetOtherThanFinancialAssetAcquiredWithCreditDeteriorationMembervbtx:RealEstatePortfolioSegmentMemberus-gaap:RealEstateLoanMembersrt:MultifamilyMember2023-04-012023-06-300001501570us-gaap:FinancialAssetOtherThanFinancialAssetAcquiredWithCreditDeteriorationMemberus-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMembervbtx:OwnerOccupiedCommercialRealEstateMember2023-04-012023-06-300001501570us-gaap:FinancialAssetOtherThanFinancialAssetAcquiredWithCreditDeteriorationMemberus-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMember2023-04-012023-06-300001501570us-gaap:FinancialAssetOtherThanFinancialAssetAcquiredWithCreditDeteriorationMemberus-gaap:CommercialPortfolioSegmentMember2023-04-012023-06-300001501570us-gaap:FinancialAssetOtherThanFinancialAssetAcquiredWithCreditDeteriorationMemberus-gaap:ConsumerPortfolioSegmentMember2023-04-012023-06-300001501570us-gaap:FinancialAssetOtherThanFinancialAssetAcquiredWithCreditDeteriorationMember2023-04-012023-06-300001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetAcquiredWithCreditDeteriorationMembervbtx:ConstructionAndLandLoanMember2023-04-012023-06-300001501570vbtx:RealEstatePortfolioSegmentMembervbtx:FarmlandLoanMemberus-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember2023-04-012023-06-300001501570vbtx:RealEstatePortfolioSegmentMembersrt:SingleFamilyMemberus-gaap:FinancialAssetAcquiredWithCreditDeteriorationMemberus-gaap:RealEstateLoanMember2023-04-012023-06-300001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetAcquiredWithCreditDeteriorationMemberus-gaap:RealEstateLoanMembersrt:MultifamilyMember2023-04-012023-06-300001501570us-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMembervbtx:OwnerOccupiedCommercialRealEstateMemberus-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember2023-04-012023-06-300001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember2023-04-012023-06-300001501570us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMemberus-gaap:CommercialPortfolioSegmentMember2023-04-012023-06-300001501570us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMemberus-gaap:ConsumerPortfolioSegmentMember2023-04-012023-06-300001501570us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember2023-04-012023-06-300001501570vbtx:RealEstatePortfolioSegmentMembervbtx:ConstructionAndLandLoanMember2023-04-012023-06-300001501570vbtx:RealEstatePortfolioSegmentMembervbtx:FarmlandLoanMember2023-04-012023-06-300001501570vbtx:RealEstatePortfolioSegmentMembersrt:SingleFamilyMemberus-gaap:RealEstateLoanMember2023-04-012023-06-300001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:RealEstateLoanMembersrt:MultifamilyMember2023-04-012023-06-300001501570us-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMembervbtx:OwnerOccupiedCommercialRealEstateMember2023-04-012023-06-300001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMember2023-04-012023-06-300001501570us-gaap:CommercialPortfolioSegmentMember2023-04-012023-06-300001501570us-gaap:ConsumerPortfolioSegmentMember2023-04-012023-06-300001501570vbtx:RealEstatePortfolioSegmentMembervbtx:ConstructionAndLandLoanMember2023-06-300001501570vbtx:RealEstatePortfolioSegmentMembervbtx:FarmlandLoanMember2023-06-300001501570vbtx:RealEstatePortfolioSegmentMembersrt:SingleFamilyMemberus-gaap:RealEstateLoanMember2023-06-300001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:RealEstateLoanMembersrt:MultifamilyMember2023-06-300001501570us-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMembervbtx:OwnerOccupiedCommercialRealEstateMember2023-06-300001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMember2023-06-300001501570us-gaap:CommercialPortfolioSegmentMember2023-06-300001501570us-gaap:ConsumerPortfolioSegmentMember2023-06-300001501570vbtx:MortgageWarehouseMember2023-12-310001501570us-gaap:FinancialAssetOtherThanFinancialAssetAcquiredWithCreditDeteriorationMembervbtx:RealEstatePortfolioSegmentMembervbtx:ConstructionAndLandLoanMember2024-01-012024-06-300001501570us-gaap:FinancialAssetOtherThanFinancialAssetAcquiredWithCreditDeteriorationMembervbtx:RealEstatePortfolioSegmentMembervbtx:FarmlandLoanMember2024-01-012024-06-300001501570us-gaap:FinancialAssetOtherThanFinancialAssetAcquiredWithCreditDeteriorationMembervbtx:RealEstatePortfolioSegmentMembersrt:SingleFamilyMemberus-gaap:RealEstateLoanMember2024-01-012024-06-300001501570us-gaap:FinancialAssetOtherThanFinancialAssetAcquiredWithCreditDeteriorationMembervbtx:RealEstatePortfolioSegmentMemberus-gaap:RealEstateLoanMembersrt:MultifamilyMember2024-01-012024-06-300001501570us-gaap:FinancialAssetOtherThanFinancialAssetAcquiredWithCreditDeteriorationMemberus-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMembervbtx:OwnerOccupiedCommercialRealEstateMember2024-01-012024-06-300001501570us-gaap:FinancialAssetOtherThanFinancialAssetAcquiredWithCreditDeteriorationMemberus-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMember2024-01-012024-06-300001501570us-gaap:FinancialAssetOtherThanFinancialAssetAcquiredWithCreditDeteriorationMemberus-gaap:CommercialPortfolioSegmentMember2024-01-012024-06-300001501570us-gaap:FinancialAssetOtherThanFinancialAssetAcquiredWithCreditDeteriorationMembervbtx:MortgageWarehouseMember2024-01-012024-06-300001501570us-gaap:FinancialAssetOtherThanFinancialAssetAcquiredWithCreditDeteriorationMemberus-gaap:ConsumerPortfolioSegmentMember2024-01-012024-06-300001501570us-gaap:FinancialAssetOtherThanFinancialAssetAcquiredWithCreditDeteriorationMember2024-01-012024-06-300001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetAcquiredWithCreditDeteriorationMembervbtx:ConstructionAndLandLoanMember2024-01-012024-06-300001501570vbtx:RealEstatePortfolioSegmentMembervbtx:FarmlandLoanMemberus-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember2024-01-012024-06-300001501570vbtx:RealEstatePortfolioSegmentMembersrt:SingleFamilyMemberus-gaap:FinancialAssetAcquiredWithCreditDeteriorationMemberus-gaap:RealEstateLoanMember2024-01-012024-06-300001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetAcquiredWithCreditDeteriorationMemberus-gaap:RealEstateLoanMembersrt:MultifamilyMember2024-01-012024-06-300001501570us-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMembervbtx:OwnerOccupiedCommercialRealEstateMemberus-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember2024-01-012024-06-300001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember2024-01-012024-06-300001501570us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMemberus-gaap:CommercialPortfolioSegmentMember2024-01-012024-06-300001501570vbtx:MortgageWarehouseMemberus-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember2024-01-012024-06-300001501570us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMemberus-gaap:ConsumerPortfolioSegmentMember2024-01-012024-06-300001501570us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember2024-01-012024-06-300001501570vbtx:RealEstatePortfolioSegmentMembervbtx:ConstructionAndLandLoanMember2024-01-012024-06-300001501570vbtx:RealEstatePortfolioSegmentMembervbtx:FarmlandLoanMember2024-01-012024-06-300001501570vbtx:RealEstatePortfolioSegmentMembersrt:SingleFamilyMemberus-gaap:RealEstateLoanMember2024-01-012024-06-300001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:RealEstateLoanMembersrt:MultifamilyMember2024-01-012024-06-300001501570us-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMembervbtx:OwnerOccupiedCommercialRealEstateMember2024-01-012024-06-300001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMember2024-01-012024-06-300001501570us-gaap:CommercialPortfolioSegmentMember2024-01-012024-06-300001501570vbtx:MortgageWarehouseMember2024-01-012024-06-300001501570us-gaap:ConsumerPortfolioSegmentMember2024-01-012024-06-300001501570vbtx:RealEstatePortfolioSegmentMembervbtx:ConstructionAndLandLoanMember2022-12-310001501570vbtx:RealEstatePortfolioSegmentMembervbtx:FarmlandLoanMember2022-12-310001501570vbtx:RealEstatePortfolioSegmentMembersrt:SingleFamilyMemberus-gaap:RealEstateLoanMember2022-12-310001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:RealEstateLoanMembersrt:MultifamilyMember2022-12-310001501570us-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMembervbtx:OwnerOccupiedCommercialRealEstateMember2022-12-310001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMember2022-12-310001501570us-gaap:CommercialPortfolioSegmentMember2022-12-310001501570us-gaap:ConsumerPortfolioSegmentMember2022-12-310001501570us-gaap:FinancialAssetOtherThanFinancialAssetAcquiredWithCreditDeteriorationMembervbtx:RealEstatePortfolioSegmentMembervbtx:ConstructionAndLandLoanMember2023-01-012023-06-300001501570us-gaap:FinancialAssetOtherThanFinancialAssetAcquiredWithCreditDeteriorationMembervbtx:RealEstatePortfolioSegmentMembervbtx:FarmlandLoanMember2023-01-012023-06-300001501570us-gaap:FinancialAssetOtherThanFinancialAssetAcquiredWithCreditDeteriorationMembervbtx:RealEstatePortfolioSegmentMembersrt:SingleFamilyMemberus-gaap:RealEstateLoanMember2023-01-012023-06-300001501570us-gaap:FinancialAssetOtherThanFinancialAssetAcquiredWithCreditDeteriorationMembervbtx:RealEstatePortfolioSegmentMemberus-gaap:RealEstateLoanMembersrt:MultifamilyMember2023-01-012023-06-300001501570us-gaap:FinancialAssetOtherThanFinancialAssetAcquiredWithCreditDeteriorationMemberus-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMembervbtx:OwnerOccupiedCommercialRealEstateMember2023-01-012023-06-300001501570us-gaap:FinancialAssetOtherThanFinancialAssetAcquiredWithCreditDeteriorationMemberus-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMember2023-01-012023-06-300001501570us-gaap:FinancialAssetOtherThanFinancialAssetAcquiredWithCreditDeteriorationMemberus-gaap:CommercialPortfolioSegmentMember2023-01-012023-06-300001501570us-gaap:FinancialAssetOtherThanFinancialAssetAcquiredWithCreditDeteriorationMemberus-gaap:ConsumerPortfolioSegmentMember2023-01-012023-06-300001501570us-gaap:FinancialAssetOtherThanFinancialAssetAcquiredWithCreditDeteriorationMember2023-01-012023-06-300001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetAcquiredWithCreditDeteriorationMembervbtx:ConstructionAndLandLoanMember2023-01-012023-06-300001501570vbtx:RealEstatePortfolioSegmentMembervbtx:FarmlandLoanMemberus-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember2023-01-012023-06-300001501570vbtx:RealEstatePortfolioSegmentMembersrt:SingleFamilyMemberus-gaap:FinancialAssetAcquiredWithCreditDeteriorationMemberus-gaap:RealEstateLoanMember2023-01-012023-06-300001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetAcquiredWithCreditDeteriorationMemberus-gaap:RealEstateLoanMembersrt:MultifamilyMember2023-01-012023-06-300001501570us-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMembervbtx:OwnerOccupiedCommercialRealEstateMemberus-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember2023-01-012023-06-300001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember2023-01-012023-06-300001501570us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMemberus-gaap:CommercialPortfolioSegmentMember2023-01-012023-06-300001501570us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMemberus-gaap:ConsumerPortfolioSegmentMember2023-01-012023-06-300001501570us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember2023-01-012023-06-300001501570vbtx:RealEstatePortfolioSegmentMembervbtx:ConstructionAndLandLoanMember2023-01-012023-06-300001501570vbtx:RealEstatePortfolioSegmentMembervbtx:FarmlandLoanMember2023-01-012023-06-300001501570vbtx:RealEstatePortfolioSegmentMembersrt:SingleFamilyMemberus-gaap:RealEstateLoanMember2023-01-012023-06-300001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:RealEstateLoanMembersrt:MultifamilyMember2023-01-012023-06-300001501570us-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMembervbtx:OwnerOccupiedCommercialRealEstateMember2023-01-012023-06-300001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMember2023-01-012023-06-300001501570us-gaap:CommercialPortfolioSegmentMember2023-01-012023-06-300001501570us-gaap:ConsumerPortfolioSegmentMember2023-01-012023-06-300001501570us-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMembervbtx:OwnerOccupiedCommercialRealEstateMemberus-gaap:RealEstateMember2024-06-300001501570us-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMembervbtx:OwnerOccupiedCommercialRealEstateMemberus-gaap:CollateralPledgedMember2024-06-300001501570us-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMembervbtx:OwnerOccupiedCommercialRealEstateMemberus-gaap:RealEstateMember2023-12-310001501570us-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMembervbtx:OwnerOccupiedCommercialRealEstateMemberus-gaap:CollateralPledgedMember2023-12-310001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMemberus-gaap:RealEstateMember2024-06-300001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMemberus-gaap:CollateralPledgedMember2024-06-300001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMemberus-gaap:RealEstateMember2023-12-310001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMemberus-gaap:CollateralPledgedMember2023-12-310001501570us-gaap:RealEstateMemberus-gaap:CommercialPortfolioSegmentMember2024-06-300001501570us-gaap:CollateralPledgedMemberus-gaap:CommercialPortfolioSegmentMember2024-06-300001501570us-gaap:RealEstateMemberus-gaap:CommercialPortfolioSegmentMember2023-12-310001501570us-gaap:CollateralPledgedMemberus-gaap:CommercialPortfolioSegmentMember2023-12-310001501570us-gaap:RealEstateMember2024-06-300001501570us-gaap:CollateralPledgedMember2024-06-300001501570us-gaap:RealEstateMember2023-12-310001501570us-gaap:CollateralPledgedMember2023-12-310001501570vbtx:RealEstatePortfolioSegmentMembervbtx:ConstructionAndLandMemberus-gaap:RealEstateLoanMember2024-06-300001501570vbtx:RealEstatePortfolioSegmentMembervbtx:ConstructionAndLandMemberus-gaap:RealEstateLoanMember2023-12-310001501570us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember2023-01-012023-12-310001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMembervbtx:ConstructionAndLandLoanMember2024-06-300001501570vbtx:RealEstatePortfolioSegmentMembervbtx:ConstructionAndLandLoanMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-06-300001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembervbtx:ConstructionAndLandLoanMember2024-06-300001501570vbtx:RealEstatePortfolioSegmentMembervbtx:ConstructionAndLandLoanMemberus-gaap:FinancialAssetPastDueMember2024-06-300001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMembervbtx:ConstructionAndLandLoanMember2024-06-300001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMembervbtx:FarmlandLoanMember2024-06-300001501570vbtx:RealEstatePortfolioSegmentMembervbtx:FarmlandLoanMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-06-300001501570vbtx:RealEstatePortfolioSegmentMembervbtx:FarmlandLoanMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-06-300001501570vbtx:RealEstatePortfolioSegmentMembervbtx:FarmlandLoanMemberus-gaap:FinancialAssetPastDueMember2024-06-300001501570vbtx:RealEstatePortfolioSegmentMembervbtx:FarmlandLoanMemberus-gaap:FinancialAssetNotPastDueMember2024-06-300001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMembersrt:SingleFamilyMemberus-gaap:RealEstateLoanMember2024-06-300001501570vbtx:RealEstatePortfolioSegmentMembersrt:SingleFamilyMemberus-gaap:RealEstateLoanMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-06-300001501570vbtx:RealEstatePortfolioSegmentMembersrt:SingleFamilyMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:RealEstateLoanMember2024-06-300001501570vbtx:RealEstatePortfolioSegmentMembersrt:SingleFamilyMemberus-gaap:RealEstateLoanMemberus-gaap:FinancialAssetPastDueMember2024-06-300001501570vbtx:RealEstatePortfolioSegmentMembersrt:SingleFamilyMemberus-gaap:FinancialAssetNotPastDueMemberus-gaap:RealEstateLoanMember2024-06-300001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:RealEstateLoanMembersrt:MultifamilyMember2024-06-300001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:RealEstateLoanMembersrt:MultifamilyMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-06-300001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:RealEstateLoanMembersrt:MultifamilyMember2024-06-300001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:RealEstateLoanMemberus-gaap:FinancialAssetPastDueMembersrt:MultifamilyMember2024-06-300001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMemberus-gaap:RealEstateLoanMembersrt:MultifamilyMember2024-06-300001501570us-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMembervbtx:OwnerOccupiedCommercialRealEstateMember2024-06-300001501570us-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMembervbtx:OwnerOccupiedCommercialRealEstateMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-06-300001501570us-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembervbtx:OwnerOccupiedCommercialRealEstateMember2024-06-300001501570us-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMembervbtx:OwnerOccupiedCommercialRealEstateMemberus-gaap:FinancialAssetPastDueMember2024-06-300001501570us-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMembervbtx:OwnerOccupiedCommercialRealEstateMemberus-gaap:FinancialAssetNotPastDueMember2024-06-300001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-06-300001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-06-300001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-06-300001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2024-06-300001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2024-06-300001501570us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2024-06-300001501570us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-06-300001501570us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2024-06-300001501570us-gaap:FinancialAssetPastDueMemberus-gaap:CommercialPortfolioSegmentMember2024-06-300001501570us-gaap:FinancialAssetNotPastDueMemberus-gaap:CommercialPortfolioSegmentMember2024-06-300001501570us-gaap:FinancingReceivables30To59DaysPastDueMembervbtx:MortgageWarehousePortfolioSegmentMember2024-06-300001501570vbtx:MortgageWarehousePortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-06-300001501570us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembervbtx:MortgageWarehousePortfolioSegmentMember2024-06-300001501570us-gaap:FinancialAssetPastDueMembervbtx:MortgageWarehousePortfolioSegmentMember2024-06-300001501570us-gaap:FinancialAssetNotPastDueMembervbtx:MortgageWarehousePortfolioSegmentMember2024-06-300001501570us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2024-06-300001501570us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-06-300001501570us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2024-06-300001501570us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2024-06-300001501570us-gaap:FinancialAssetNotPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2024-06-300001501570us-gaap:FinancingReceivables30To59DaysPastDueMember2024-06-300001501570us-gaap:FinancingReceivables60To89DaysPastDueMember2024-06-300001501570us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-06-300001501570us-gaap:FinancialAssetPastDueMember2024-06-300001501570us-gaap:FinancialAssetNotPastDueMember2024-06-300001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMembervbtx:ConstructionAndLandLoanMember2023-12-310001501570vbtx:RealEstatePortfolioSegmentMembervbtx:ConstructionAndLandLoanMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-12-310001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembervbtx:ConstructionAndLandLoanMember2023-12-310001501570vbtx:RealEstatePortfolioSegmentMembervbtx:ConstructionAndLandLoanMemberus-gaap:FinancialAssetPastDueMember2023-12-310001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMembervbtx:ConstructionAndLandLoanMember2023-12-310001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMembervbtx:FarmlandLoanMember2023-12-310001501570vbtx:RealEstatePortfolioSegmentMembervbtx:FarmlandLoanMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-12-310001501570vbtx:RealEstatePortfolioSegmentMembervbtx:FarmlandLoanMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-12-310001501570vbtx:RealEstatePortfolioSegmentMembervbtx:FarmlandLoanMemberus-gaap:FinancialAssetPastDueMember2023-12-310001501570vbtx:RealEstatePortfolioSegmentMembervbtx:FarmlandLoanMemberus-gaap:FinancialAssetNotPastDueMember2023-12-310001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMembersrt:SingleFamilyMemberus-gaap:RealEstateLoanMember2023-12-310001501570vbtx:RealEstatePortfolioSegmentMembersrt:SingleFamilyMemberus-gaap:RealEstateLoanMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-12-310001501570vbtx:RealEstatePortfolioSegmentMembersrt:SingleFamilyMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:RealEstateLoanMember2023-12-310001501570vbtx:RealEstatePortfolioSegmentMembersrt:SingleFamilyMemberus-gaap:RealEstateLoanMemberus-gaap:FinancialAssetPastDueMember2023-12-310001501570vbtx:RealEstatePortfolioSegmentMembersrt:SingleFamilyMemberus-gaap:FinancialAssetNotPastDueMemberus-gaap:RealEstateLoanMember2023-12-310001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:RealEstateLoanMembersrt:MultifamilyMember2023-12-310001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:RealEstateLoanMembersrt:MultifamilyMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-12-310001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:RealEstateLoanMembersrt:MultifamilyMember2023-12-310001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:RealEstateLoanMemberus-gaap:FinancialAssetPastDueMembersrt:MultifamilyMember2023-12-310001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMemberus-gaap:RealEstateLoanMembersrt:MultifamilyMember2023-12-310001501570us-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMembervbtx:OwnerOccupiedCommercialRealEstateMember2023-12-310001501570us-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMembervbtx:OwnerOccupiedCommercialRealEstateMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-12-310001501570us-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembervbtx:OwnerOccupiedCommercialRealEstateMember2023-12-310001501570us-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMembervbtx:OwnerOccupiedCommercialRealEstateMemberus-gaap:FinancialAssetPastDueMember2023-12-310001501570us-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMembervbtx:OwnerOccupiedCommercialRealEstateMemberus-gaap:FinancialAssetNotPastDueMember2023-12-310001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-12-310001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-12-310001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-12-310001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2023-12-310001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2023-12-310001501570us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2023-12-310001501570us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-12-310001501570us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2023-12-310001501570us-gaap:FinancialAssetPastDueMemberus-gaap:CommercialPortfolioSegmentMember2023-12-310001501570us-gaap:FinancialAssetNotPastDueMemberus-gaap:CommercialPortfolioSegmentMember2023-12-310001501570us-gaap:FinancingReceivables30To59DaysPastDueMembervbtx:MortgageWarehousePortfolioSegmentMember2023-12-310001501570vbtx:MortgageWarehousePortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-12-310001501570us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembervbtx:MortgageWarehousePortfolioSegmentMember2023-12-310001501570us-gaap:FinancialAssetPastDueMembervbtx:MortgageWarehousePortfolioSegmentMember2023-12-310001501570us-gaap:FinancialAssetNotPastDueMembervbtx:MortgageWarehousePortfolioSegmentMember2023-12-310001501570us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2023-12-310001501570us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-12-310001501570us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2023-12-310001501570us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2023-12-310001501570us-gaap:FinancialAssetNotPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2023-12-310001501570us-gaap:FinancingReceivables30To59DaysPastDueMember2023-12-310001501570us-gaap:FinancingReceivables60To89DaysPastDueMember2023-12-310001501570us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-12-310001501570us-gaap:FinancialAssetPastDueMember2023-12-310001501570us-gaap:FinancialAssetNotPastDueMember2023-12-310001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMemberus-gaap:ContractualInterestRateReductionMember2024-01-012024-06-300001501570us-gaap:ExtendedMaturityMembervbtx:RealEstatePortfolioSegmentMembervbtx:ConstructionAndLandLoanMember2024-01-012024-06-300001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMemberus-gaap:ExtendedMaturityMembervbtx:RealEstatePortfolioSegmentMember2024-01-012024-06-300001501570us-gaap:CommercialRealEstateMemberus-gaap:ExtendedMaturityMemberus-gaap:CommercialPortfolioSegmentMember2024-01-012024-06-300001501570us-gaap:ExtendedMaturityMember2024-01-012024-06-300001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMemberus-gaap:ExtendedMaturityAndInterestRateReductionMember2024-01-012024-06-300001501570us-gaap:ExtendedMaturityAndInterestRateReductionMemberus-gaap:CommercialPortfolioSegmentMember2024-01-012024-06-300001501570us-gaap:ExtendedMaturityAndInterestRateReductionMember2024-01-012024-06-300001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMembervbtx:ConstructionAndLandLoanMember2024-01-012024-06-300001501570vbtx:RealEstatePortfolioSegmentMembervbtx:ConstructionAndLandLoanMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-01-012024-06-300001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembervbtx:ConstructionAndLandLoanMember2024-01-012024-06-300001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-01-012024-06-300001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-01-012024-06-300001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-01-012024-06-300001501570us-gaap:CommercialRealEstateMemberus-gaap:CommercialPortfolioSegmentMember2024-01-012024-06-300001501570us-gaap:CommercialRealEstateMemberus-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2024-01-012024-06-300001501570us-gaap:CommercialRealEstateMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-01-012024-06-300001501570us-gaap:CommercialRealEstateMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2024-01-012024-06-300001501570us-gaap:FinancingReceivables30To59DaysPastDueMember2024-01-012024-06-300001501570us-gaap:FinancingReceivables60To89DaysPastDueMember2024-01-012024-06-300001501570us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-01-012024-06-300001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:PassMembervbtx:ConstructionAndLandLoanMember2024-06-300001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:SpecialMentionMembervbtx:ConstructionAndLandLoanMember2024-06-300001501570vbtx:RealEstatePortfolioSegmentMembervbtx:ConstructionAndLandLoanMemberus-gaap:SubstandardMember2024-06-300001501570vbtx:RealEstatePortfolioSegmentMembervbtx:FarmlandLoanMemberus-gaap:PassMember2024-06-300001501570vbtx:RealEstatePortfolioSegmentMembersrt:SingleFamilyMemberus-gaap:PassMemberus-gaap:RealEstateLoanMember2024-06-300001501570vbtx:RealEstatePortfolioSegmentMembersrt:SingleFamilyMemberus-gaap:SpecialMentionMemberus-gaap:RealEstateLoanMember2024-06-300001501570vbtx:RealEstatePortfolioSegmentMembersrt:SingleFamilyMemberus-gaap:SubstandardMemberus-gaap:RealEstateLoanMember2024-06-300001501570vbtx:RealEstatePortfolioSegmentMembersrt:SingleFamilyMembervbtx:PCDMemberus-gaap:RealEstateLoanMember2024-06-300001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:PassMemberus-gaap:RealEstateLoanMembersrt:MultifamilyMember2024-06-300001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:SubstandardMemberus-gaap:RealEstateLoanMembersrt:MultifamilyMember2024-06-300001501570us-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMembervbtx:OwnerOccupiedCommercialRealEstateMemberus-gaap:PassMember2024-06-300001501570us-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMembervbtx:OwnerOccupiedCommercialRealEstateMemberus-gaap:SpecialMentionMember2024-06-300001501570us-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMembervbtx:OwnerOccupiedCommercialRealEstateMemberus-gaap:SubstandardMember2024-06-300001501570us-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMembervbtx:OwnerOccupiedCommercialRealEstateMembervbtx:PCDMember2024-06-300001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMemberus-gaap:PassMember2024-06-300001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMemberus-gaap:SpecialMentionMember2024-06-300001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMemberus-gaap:SubstandardMember2024-06-300001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMembervbtx:PCDMember2024-06-300001501570us-gaap:PassMemberus-gaap:CommercialPortfolioSegmentMember2024-06-300001501570us-gaap:SpecialMentionMemberus-gaap:CommercialPortfolioSegmentMember2024-06-300001501570us-gaap:SubstandardMemberus-gaap:CommercialPortfolioSegmentMember2024-06-300001501570vbtx:PCDMemberus-gaap:CommercialPortfolioSegmentMember2024-06-300001501570us-gaap:PassMembervbtx:MortgageWarehousePortfolioSegmentMember2024-06-300001501570us-gaap:SubstandardMembervbtx:MortgageWarehousePortfolioSegmentMember2024-06-300001501570vbtx:MortgageWarehousePortfolioSegmentMember2024-01-012024-06-300001501570us-gaap:PassMemberus-gaap:ConsumerPortfolioSegmentMember2024-06-300001501570us-gaap:SpecialMentionMemberus-gaap:ConsumerPortfolioSegmentMember2024-06-300001501570us-gaap:SubstandardMemberus-gaap:ConsumerPortfolioSegmentMember2024-06-300001501570us-gaap:ConsumerPortfolioSegmentMembervbtx:PCDMember2024-06-300001501570us-gaap:PassMember2024-06-300001501570us-gaap:SpecialMentionMember2024-06-300001501570us-gaap:SubstandardMember2024-06-300001501570vbtx:PCDMember2024-06-300001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:PassMembervbtx:ConstructionAndLandLoanMember2023-12-310001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:SpecialMentionMembervbtx:ConstructionAndLandLoanMember2023-12-310001501570vbtx:RealEstatePortfolioSegmentMembervbtx:ConstructionAndLandLoanMemberus-gaap:SubstandardMember2023-12-310001501570vbtx:RealEstatePortfolioSegmentMembervbtx:ConstructionAndLandLoanMember2023-01-012023-12-310001501570vbtx:RealEstatePortfolioSegmentMembervbtx:FarmlandLoanMemberus-gaap:PassMember2023-12-310001501570vbtx:RealEstatePortfolioSegmentMembervbtx:FarmlandLoanMember2023-01-012023-12-310001501570vbtx:RealEstatePortfolioSegmentMembersrt:SingleFamilyMemberus-gaap:PassMemberus-gaap:RealEstateLoanMember2023-12-310001501570vbtx:RealEstatePortfolioSegmentMembersrt:SingleFamilyMemberus-gaap:SpecialMentionMemberus-gaap:RealEstateLoanMember2023-12-310001501570vbtx:RealEstatePortfolioSegmentMembersrt:SingleFamilyMemberus-gaap:SubstandardMemberus-gaap:RealEstateLoanMember2023-12-310001501570vbtx:RealEstatePortfolioSegmentMembersrt:SingleFamilyMembervbtx:PCDMemberus-gaap:RealEstateLoanMember2023-12-310001501570vbtx:RealEstatePortfolioSegmentMembersrt:SingleFamilyMemberus-gaap:RealEstateLoanMember2023-01-012023-12-310001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:PassMemberus-gaap:RealEstateLoanMembersrt:MultifamilyMember2023-12-310001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:SpecialMentionMemberus-gaap:RealEstateLoanMembersrt:MultifamilyMember2023-12-310001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:SubstandardMemberus-gaap:RealEstateLoanMembersrt:MultifamilyMember2023-12-310001501570vbtx:RealEstatePortfolioSegmentMemberus-gaap:RealEstateLoanMembersrt:MultifamilyMember2023-01-012023-12-310001501570us-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMembervbtx:OwnerOccupiedCommercialRealEstateMemberus-gaap:PassMember2023-12-310001501570us-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMembervbtx:OwnerOccupiedCommercialRealEstateMemberus-gaap:SpecialMentionMember2023-12-310001501570us-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMembervbtx:OwnerOccupiedCommercialRealEstateMemberus-gaap:SubstandardMember2023-12-310001501570us-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMembervbtx:OwnerOccupiedCommercialRealEstateMembervbtx:PCDMember2023-12-310001501570us-gaap:CommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMembervbtx:OwnerOccupiedCommercialRealEstateMember2023-01-012023-12-310001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMemberus-gaap:PassMember2023-12-310001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMemberus-gaap:SpecialMentionMember2023-12-310001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMemberus-gaap:SubstandardMember2023-12-310001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMembervbtx:PCDMember2023-12-310001501570us-gaap:CommercialRealEstateMembervbtx:NonOwnerOccupiedCommercialRealEstateMembervbtx:RealEstatePortfolioSegmentMember2023-01-012023-12-310001501570us-gaap:PassMemberus-gaap:CommercialPortfolioSegmentMember2023-12-310001501570us-gaap:SpecialMentionMemberus-gaap:CommercialPortfolioSegmentMember2023-12-310001501570us-gaap:SubstandardMemberus-gaap:CommercialPortfolioSegmentMember2023-12-310001501570vbtx:PCDMemberus-gaap:CommercialPortfolioSegmentMember2023-12-310001501570us-gaap:CommercialPortfolioSegmentMember2023-01-012023-12-310001501570us-gaap:PassMembervbtx:MortgageWarehousePortfolioSegmentMember2023-12-310001501570vbtx:MortgageWarehousePortfolioSegmentMember2023-01-012023-12-310001501570us-gaap:PassMemberus-gaap:ConsumerPortfolioSegmentMember2023-12-310001501570us-gaap:SpecialMentionMemberus-gaap:ConsumerPortfolioSegmentMember2023-12-310001501570us-gaap:SubstandardMemberus-gaap:ConsumerPortfolioSegmentMember2023-12-310001501570us-gaap:ConsumerPortfolioSegmentMembervbtx:PCDMember2023-12-310001501570us-gaap:ConsumerPortfolioSegmentMember2023-01-012023-12-310001501570us-gaap:PassMember2023-12-310001501570us-gaap:SpecialMentionMember2023-12-310001501570us-gaap:SubstandardMember2023-12-310001501570vbtx:PCDMember2023-12-310001501570vbtx:SmallBusinessAdministrationLoansMember2024-04-012024-06-300001501570vbtx:SmallBusinessAdministrationLoansMember2023-04-012023-06-300001501570vbtx:SmallBusinessAdministrationLoansMember2024-01-012024-06-300001501570vbtx:SmallBusinessAdministrationLoansMember2023-01-012023-06-300001501570vbtx:USDALoansMember2024-04-012024-06-300001501570vbtx:USDALoansMember2023-04-012023-06-300001501570vbtx:USDALoansMember2024-01-012024-06-300001501570vbtx:USDALoansMember2023-01-012023-06-300001501570vbtx:SmallBusinessAdministrationConstructionAndLandMember2024-06-300001501570vbtx:SmallBusinessAdministrationConstructionAndLandMember2023-12-310001501570vbtx:A14FamilyResidentialMember2024-06-300001501570vbtx:A14FamilyResidentialMember2023-12-310001501570vbtx:SmallBusinessAdministrationOwnerOccupiedCommercialRealEstateMember2024-06-300001501570vbtx:SmallBusinessAdministrationOwnerOccupiedCommercialRealEstateMember2023-12-310001501570vbtx:NonOwnerOccupiedCommercialRealEstateMember2024-06-300001501570vbtx:NonOwnerOccupiedCommercialRealEstateMember2023-12-310001501570vbtx:SmallBusinessAdministrationCommercialMember2024-06-300001501570vbtx:SmallBusinessAdministrationCommercialMember2023-12-310001501570us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2024-06-300001501570us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2024-06-300001501570us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2024-06-300001501570us-gaap:FairValueMeasurementsRecurringMember2024-06-300001501570us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-06-300001501570us-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMember2024-06-300001501570us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-06-300001501570us-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-06-300001501570us-gaap:FairValueInputsLevel1Membervbtx:FinancialInstitutionMemberus-gaap:NondesignatedMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateSwapMember2024-06-300001501570vbtx:FinancialInstitutionMemberus-gaap:NondesignatedMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Member2024-06-300001501570vbtx:FinancialInstitutionMemberus-gaap:NondesignatedMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateSwapMember2024-06-300001501570vbtx:FinancialInstitutionMemberus-gaap:NondesignatedMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateSwapMember2024-06-300001501570us-gaap:FairValueInputsLevel1Memberus-gaap:NondesignatedMembervbtx:CommercialCustomerMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateSwapMember2024-06-300001501570us-gaap:NondesignatedMembervbtx:CommercialCustomerMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Member2024-06-300001501570us-gaap:NondesignatedMembervbtx:CommercialCustomerMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateSwapMember2024-06-300001501570us-gaap:NondesignatedMembervbtx:CommercialCustomerMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateSwapMember2024-06-300001501570us-gaap:FairValueInputsLevel1Membervbtx:FinancialInstitutionMemberus-gaap:NondesignatedMemberus-gaap:FairValueMeasurementsRecurringMembervbtx:InterestRateCapAndCollarMember2024-06-300001501570vbtx:FinancialInstitutionMemberus-gaap:NondesignatedMemberus-gaap:FairValueMeasurementsRecurringMembervbtx:InterestRateCapAndCollarMemberus-gaap:FairValueInputsLevel2Member2024-06-300001501570vbtx:FinancialInstitutionMemberus-gaap:NondesignatedMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Membervbtx:InterestRateCapAndCollarMember2024-06-300001501570vbtx:FinancialInstitutionMemberus-gaap:NondesignatedMemberus-gaap:FairValueMeasurementsRecurringMembervbtx:InterestRateCapAndCollarMember2024-06-300001501570us-gaap:FairValueInputsLevel1Memberus-gaap:NondesignatedMembervbtx:CommercialCustomerMemberus-gaap:FairValueMeasurementsRecurringMembervbtx:InterestRateCapAndCollarMember2024-06-300001501570us-gaap:NondesignatedMembervbtx:CommercialCustomerMemberus-gaap:FairValueMeasurementsRecurringMembervbtx:InterestRateCapAndCollarMemberus-gaap:FairValueInputsLevel2Member2024-06-300001501570us-gaap:NondesignatedMembervbtx:CommercialCustomerMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Membervbtx:InterestRateCapAndCollarMember2024-06-300001501570us-gaap:NondesignatedMembervbtx:CommercialCustomerMemberus-gaap:FairValueMeasurementsRecurringMembervbtx:InterestRateCapAndCollarMember2024-06-300001501570us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001501570us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-12-310001501570us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001501570us-gaap:FairValueMeasurementsRecurringMember2023-12-310001501570us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-12-310001501570us-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMember2023-12-310001501570us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-12-310001501570us-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-12-310001501570us-gaap:FairValueInputsLevel1Membervbtx:FinancialInstitutionMemberus-gaap:NondesignatedMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateSwapMember2023-12-310001501570vbtx:FinancialInstitutionMemberus-gaap:NondesignatedMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Member2023-12-310001501570vbtx:FinancialInstitutionMemberus-gaap:NondesignatedMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateSwapMember2023-12-310001501570vbtx:FinancialInstitutionMemberus-gaap:NondesignatedMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateSwapMember2023-12-310001501570us-gaap:FairValueInputsLevel1Memberus-gaap:NondesignatedMembervbtx:CommercialCustomerMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateSwapMember2023-12-310001501570us-gaap:NondesignatedMembervbtx:CommercialCustomerMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Member2023-12-310001501570us-gaap:NondesignatedMembervbtx:CommercialCustomerMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateSwapMember2023-12-310001501570us-gaap:NondesignatedMembervbtx:CommercialCustomerMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateSwapMember2023-12-310001501570us-gaap:FairValueInputsLevel1Membervbtx:FinancialInstitutionMemberus-gaap:NondesignatedMemberus-gaap:FairValueMeasurementsRecurringMembervbtx:InterestRateCapAndCollarMember2023-12-310001501570vbtx:FinancialInstitutionMemberus-gaap:NondesignatedMemberus-gaap:FairValueMeasurementsRecurringMembervbtx:InterestRateCapAndCollarMemberus-gaap:FairValueInputsLevel2Member2023-12-310001501570vbtx:FinancialInstitutionMemberus-gaap:NondesignatedMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Membervbtx:InterestRateCapAndCollarMember2023-12-310001501570vbtx:FinancialInstitutionMemberus-gaap:NondesignatedMemberus-gaap:FairValueMeasurementsRecurringMembervbtx:InterestRateCapAndCollarMember2023-12-310001501570us-gaap:FairValueInputsLevel1Memberus-gaap:NondesignatedMembervbtx:CommercialCustomerMemberus-gaap:FairValueMeasurementsRecurringMembervbtx:InterestRateCapAndCollarMember2023-12-310001501570us-gaap:NondesignatedMembervbtx:CommercialCustomerMemberus-gaap:FairValueMeasurementsRecurringMembervbtx:InterestRateCapAndCollarMemberus-gaap:FairValueInputsLevel2Member2023-12-310001501570us-gaap:NondesignatedMembervbtx:CommercialCustomerMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Membervbtx:InterestRateCapAndCollarMember2023-12-310001501570us-gaap:NondesignatedMembervbtx:CommercialCustomerMemberus-gaap:FairValueMeasurementsRecurringMembervbtx:InterestRateCapAndCollarMember2023-12-310001501570us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2024-06-300001501570us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel2Member2024-06-300001501570us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2024-06-300001501570us-gaap:FairValueMeasurementsNonrecurringMember2024-06-300001501570us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2023-12-310001501570us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel2Member2023-12-310001501570us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2023-12-310001501570us-gaap:FairValueMeasurementsNonrecurringMember2023-12-310001501570us-gaap:CarryingReportedAmountFairValueDisclosureMember2024-06-300001501570us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2024-06-300001501570us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Member2024-06-300001501570us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel3Member2024-06-300001501570us-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310001501570us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310001501570us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Member2023-12-310001501570us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel3Member2023-12-310001501570vbtx:InterestRateSwap1Memberus-gaap:DesignatedAsHedgingInstrumentMember2024-06-300001501570vbtx:InterestRateSwap1Memberus-gaap:DesignatedAsHedgingInstrumentMember2023-12-310001501570vbtx:InterestRateSwapsOnFixedRateAdvancesBrokeredCDsMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-06-300001501570vbtx:InterestRateSwapsOnFixedRateAdvancesBrokeredCDsMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-12-310001501570vbtx:InterestRateSwap2Memberus-gaap:DesignatedAsHedgingInstrumentMember2024-06-300001501570vbtx:InterestRateSwap2Memberus-gaap:DesignatedAsHedgingInstrumentMember2023-12-310001501570vbtx:InterestRateCollarMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-06-300001501570vbtx:InterestRateCollarMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-12-310001501570us-gaap:InterestRateFloorMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-06-300001501570us-gaap:InterestRateFloorMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-12-310001501570us-gaap:DesignatedAsHedgingInstrumentMember2024-06-300001501570us-gaap:DesignatedAsHedgingInstrumentMember2023-12-310001501570vbtx:FinancialInstitutionMemberus-gaap:NondesignatedMemberus-gaap:InterestRateSwapMember2024-06-300001501570vbtx:FinancialInstitutionMemberus-gaap:NondesignatedMemberus-gaap:InterestRateSwapMember2023-12-310001501570vbtx:FinancialInstitutionMemberus-gaap:NondesignatedMembervbtx:InterestRateCapsAndCorridorsMember2024-06-300001501570vbtx:FinancialInstitutionMemberus-gaap:NondesignatedMembervbtx:InterestRateCapsAndCorridorsMember2023-12-310001501570us-gaap:NondesignatedMembervbtx:CommercialCustomerMemberus-gaap:InterestRateSwapMember2024-06-300001501570us-gaap:NondesignatedMembervbtx:CommercialCustomerMemberus-gaap:InterestRateSwapMember2023-12-310001501570us-gaap:NondesignatedMembervbtx:CommercialCustomerMembervbtx:InterestRateCapsAndCorridorsMember2024-06-300001501570us-gaap:NondesignatedMembervbtx:CommercialCustomerMembervbtx:InterestRateCapsAndCorridorsMember2023-12-310001501570us-gaap:NondesignatedMember2024-06-300001501570us-gaap:NondesignatedMember2023-12-310001501570vbtx:InterestRateSwap1Memberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestExpenseMember2024-04-012024-06-300001501570vbtx:InterestRateSwap1Memberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestExpenseMember2023-04-012023-06-300001501570vbtx:InterestRateSwap2Memberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestExpenseMember2024-04-012024-06-300001501570vbtx:InterestRateSwap2Memberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestExpenseMember2023-04-012023-06-300001501570us-gaap:InterestIncomeMembervbtx:InterestRateSwapsCollarsAndFloorsOnCustomerLoanInterestPaymentsMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-04-012024-06-300001501570us-gaap:InterestIncomeMembervbtx:InterestRateSwapsCollarsAndFloorsOnCustomerLoanInterestPaymentsMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-04-012023-06-300001501570us-gaap:DesignatedAsHedgingInstrumentMember2024-04-012024-06-300001501570us-gaap:DesignatedAsHedgingInstrumentMember2023-04-012023-06-300001501570us-gaap:NondesignatedMembervbtx:InterestRateSwapsCapsAndCollarsMember2024-04-012024-06-300001501570us-gaap:NondesignatedMembervbtx:InterestRateSwapsCapsAndCollarsMember2023-04-012023-06-300001501570vbtx:InterestRateSwap1Memberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestExpenseMember2024-01-012024-06-300001501570vbtx:InterestRateSwap1Memberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestExpenseMember2023-01-012023-06-300001501570vbtx:InterestRateSwap2Memberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestExpenseMember2024-01-012024-06-300001501570vbtx:InterestRateSwap2Memberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestExpenseMember2023-01-012023-06-300001501570us-gaap:InterestIncomeMembervbtx:InterestRateSwapsCollarsAndFloorsOnCustomerLoanInterestPaymentsMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-01-012024-06-300001501570us-gaap:InterestIncomeMembervbtx:InterestRateSwapsCollarsAndFloorsOnCustomerLoanInterestPaymentsMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-06-300001501570us-gaap:DesignatedAsHedgingInstrumentMember2024-01-012024-06-300001501570us-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-06-300001501570us-gaap:NondesignatedMembervbtx:InterestRateSwapsCapsAndCollarsMember2024-01-012024-06-300001501570us-gaap:NondesignatedMembervbtx:InterestRateSwapsCapsAndCollarsMember2023-01-012023-06-300001501570us-gaap:NondesignatedMembervbtx:CommercialCustomerMemberus-gaap:InterestRateSwapMembersrt:MinimumMember2024-06-300001501570srt:MaximumMemberus-gaap:NondesignatedMembervbtx:CommercialCustomerMemberus-gaap:InterestRateSwapMember2024-06-300001501570us-gaap:NondesignatedMembervbtx:CommercialCustomerMemberus-gaap:InterestRateSwapMembervbtx:LondonInterBankOfferedRateMembersrt:MinimumMember2024-06-300001501570vbtx:SecuredOvernightFinancingRateSOFRCMEMemberus-gaap:NondesignatedMembervbtx:CommercialCustomerMemberus-gaap:InterestRateSwapMembersrt:MinimumMember2024-06-300001501570srt:MaximumMembervbtx:SecuredOvernightFinancingRateSOFRCMEMemberus-gaap:NondesignatedMembervbtx:CommercialCustomerMemberus-gaap:InterestRateSwapMember2024-06-300001501570vbtx:SecuredOvernightFinancingRateSOFRNYFDMemberus-gaap:NondesignatedMembervbtx:CommercialCustomerMemberus-gaap:InterestRateSwapMembersrt:MinimumMember2024-06-300001501570srt:MaximumMembervbtx:SecuredOvernightFinancingRateSOFRNYFDMemberus-gaap:NondesignatedMembervbtx:CommercialCustomerMemberus-gaap:InterestRateSwapMember2024-06-300001501570us-gaap:NondesignatedMembervbtx:CommercialCustomerMemberus-gaap:InterestRateSwapMember2024-01-012024-06-300001501570us-gaap:NondesignatedMembervbtx:CommercialCustomerMembervbtx:InterestRateCapsAndCorridorsMembersrt:MinimumMember2024-06-300001501570srt:MaximumMemberus-gaap:NondesignatedMembervbtx:CommercialCustomerMembervbtx:InterestRateCapsAndCorridorsMember2024-06-300001501570vbtx:SecuredOvernightFinancingRateSOFRCMEMemberus-gaap:NondesignatedMembervbtx:CommercialCustomerMembervbtx:InterestRateCapsAndCorridorsMembersrt:MinimumMember2024-06-300001501570srt:MaximumMembervbtx:SecuredOvernightFinancingRateSOFRCMEMemberus-gaap:NondesignatedMembervbtx:CommercialCustomerMembervbtx:InterestRateCapsAndCorridorsMember2024-06-300001501570us-gaap:NondesignatedMembervbtx:CommercialCustomerMembervbtx:InterestRateCapsAndCorridorsMemberus-gaap:SecuredOvernightFinancingRateSofrMember2024-06-300001501570us-gaap:NondesignatedMembervbtx:CommercialCustomerMembervbtx:InterestRateCapsAndCorridorsMember2024-01-012024-06-300001501570vbtx:FinancialInstitutionMemberus-gaap:NondesignatedMemberus-gaap:InterestRateSwapMembersrt:MinimumMember2024-06-300001501570srt:MaximumMembervbtx:FinancialInstitutionMemberus-gaap:NondesignatedMemberus-gaap:InterestRateSwapMember2024-06-300001501570vbtx:FinancialInstitutionMemberus-gaap:NondesignatedMemberus-gaap:InterestRateSwapMembervbtx:LondonInterBankOfferedRateMembersrt:MinimumMember2024-06-300001501570vbtx:SecuredOvernightFinancingRateSOFRCMEMembervbtx:FinancialInstitutionMemberus-gaap:NondesignatedMemberus-gaap:InterestRateSwapMembersrt:MinimumMember2024-06-300001501570srt:MaximumMembervbtx:SecuredOvernightFinancingRateSOFRCMEMembervbtx:FinancialInstitutionMemberus-gaap:NondesignatedMemberus-gaap:InterestRateSwapMember2024-06-300001501570vbtx:SecuredOvernightFinancingRateSOFRNYFDMembervbtx:FinancialInstitutionMemberus-gaap:NondesignatedMemberus-gaap:InterestRateSwapMembersrt:MinimumMember2024-06-300001501570srt:MaximumMembervbtx:SecuredOvernightFinancingRateSOFRNYFDMembervbtx:FinancialInstitutionMemberus-gaap:NondesignatedMemberus-gaap:InterestRateSwapMember2024-06-300001501570vbtx:FinancialInstitutionMemberus-gaap:NondesignatedMemberus-gaap:InterestRateSwapMember2024-01-012024-06-300001501570vbtx:FinancialInstitutionMemberus-gaap:NondesignatedMembervbtx:InterestRateCapsAndCorridorsMembersrt:MinimumMember2024-06-300001501570srt:MaximumMembervbtx:FinancialInstitutionMemberus-gaap:NondesignatedMembervbtx:InterestRateCapsAndCorridorsMember2024-06-300001501570vbtx:SecuredOvernightFinancingRateSOFRCMEMembervbtx:FinancialInstitutionMemberus-gaap:NondesignatedMembervbtx:InterestRateCapsAndCorridorsMembersrt:MinimumMember2024-06-300001501570srt:MaximumMembervbtx:SecuredOvernightFinancingRateSOFRCMEMembervbtx:FinancialInstitutionMemberus-gaap:NondesignatedMembervbtx:InterestRateCapsAndCorridorsMember2024-06-300001501570vbtx:FinancialInstitutionMemberus-gaap:NondesignatedMembervbtx:InterestRateCapsAndCorridorsMemberus-gaap:SecuredOvernightFinancingRateSofrMember2024-06-300001501570vbtx:FinancialInstitutionMemberus-gaap:NondesignatedMembervbtx:InterestRateCapsAndCorridorsMember2024-01-012024-06-300001501570us-gaap:NondesignatedMembervbtx:CommercialCustomerMemberus-gaap:InterestRateSwapMembersrt:MinimumMember2023-12-310001501570srt:MaximumMemberus-gaap:NondesignatedMembervbtx:CommercialCustomerMemberus-gaap:InterestRateSwapMember2023-12-310001501570us-gaap:NondesignatedMembervbtx:CommercialCustomerMemberus-gaap:InterestRateSwapMembervbtx:LondonInterBankOfferedRateMembersrt:MinimumMember2023-12-310001501570vbtx:SecuredOvernightFinancingRateSOFRCMEMemberus-gaap:NondesignatedMembervbtx:CommercialCustomerMemberus-gaap:InterestRateSwapMembersrt:MinimumMember2023-12-310001501570srt:MaximumMembervbtx:SecuredOvernightFinancingRateSOFRCMEMemberus-gaap:NondesignatedMembervbtx:CommercialCustomerMemberus-gaap:InterestRateSwapMember2023-12-310001501570vbtx:SecuredOvernightFinancingRateSOFRNYFDMemberus-gaap:NondesignatedMembervbtx:CommercialCustomerMemberus-gaap:InterestRateSwapMembersrt:MinimumMember2023-12-310001501570srt:MaximumMembervbtx:SecuredOvernightFinancingRateSOFRNYFDMemberus-gaap:NondesignatedMembervbtx:CommercialCustomerMemberus-gaap:InterestRateSwapMember2023-12-310001501570us-gaap:NondesignatedMembervbtx:CommercialCustomerMemberus-gaap:InterestRateSwapMember2023-01-012023-12-310001501570us-gaap:NondesignatedMembervbtx:CommercialCustomerMembervbtx:InterestRateCapsAndCorridorsMembersrt:MinimumMember2023-12-310001501570srt:MaximumMemberus-gaap:NondesignatedMembervbtx:CommercialCustomerMembervbtx:InterestRateCapsAndCorridorsMember2023-12-310001501570vbtx:SecuredOvernightFinancingRateSOFRCMEMemberus-gaap:NondesignatedMembervbtx:CommercialCustomerMembervbtx:InterestRateCapsAndCorridorsMembersrt:MinimumMember2023-12-310001501570srt:MaximumMembervbtx:SecuredOvernightFinancingRateSOFRCMEMemberus-gaap:NondesignatedMembervbtx:CommercialCustomerMembervbtx:InterestRateCapsAndCorridorsMember2023-12-310001501570us-gaap:NondesignatedMembervbtx:CommercialCustomerMembervbtx:InterestRateCapsAndCorridorsMemberus-gaap:SecuredOvernightFinancingRateSofrMember2023-12-310001501570us-gaap:NondesignatedMembervbtx:CommercialCustomerMembervbtx:InterestRateCapsAndCorridorsMember2023-01-012023-12-310001501570vbtx:FinancialInstitutionMemberus-gaap:NondesignatedMemberus-gaap:InterestRateSwapMembersrt:MinimumMember2023-12-310001501570srt:MaximumMembervbtx:FinancialInstitutionMemberus-gaap:NondesignatedMemberus-gaap:InterestRateSwapMember2023-12-310001501570vbtx:FinancialInstitutionMemberus-gaap:NondesignatedMemberus-gaap:InterestRateSwapMembervbtx:LondonInterBankOfferedRateMembersrt:MinimumMember2023-12-310001501570vbtx:SecuredOvernightFinancingRateSOFRCMEMembervbtx:FinancialInstitutionMemberus-gaap:NondesignatedMemberus-gaap:InterestRateSwapMembersrt:MinimumMember2023-12-310001501570srt:MaximumMembervbtx:SecuredOvernightFinancingRateSOFRCMEMembervbtx:FinancialInstitutionMemberus-gaap:NondesignatedMemberus-gaap:InterestRateSwapMember2023-12-310001501570vbtx:SecuredOvernightFinancingRateSOFRNYFDMembervbtx:FinancialInstitutionMemberus-gaap:NondesignatedMemberus-gaap:InterestRateSwapMembersrt:MinimumMember2023-12-310001501570srt:MaximumMembervbtx:SecuredOvernightFinancingRateSOFRNYFDMembervbtx:FinancialInstitutionMemberus-gaap:NondesignatedMemberus-gaap:InterestRateSwapMember2023-12-310001501570vbtx:FinancialInstitutionMemberus-gaap:NondesignatedMemberus-gaap:InterestRateSwapMember2023-01-012023-12-310001501570vbtx:FinancialInstitutionMemberus-gaap:NondesignatedMembervbtx:InterestRateCapsAndCorridorsMembersrt:MinimumMember2023-12-310001501570srt:MaximumMembervbtx:FinancialInstitutionMemberus-gaap:NondesignatedMembervbtx:InterestRateCapsAndCorridorsMember2023-12-310001501570vbtx:SecuredOvernightFinancingRateSOFRCMEMembervbtx:FinancialInstitutionMemberus-gaap:NondesignatedMembervbtx:InterestRateCapsAndCorridorsMembersrt:MinimumMember2023-12-310001501570srt:MaximumMembervbtx:SecuredOvernightFinancingRateSOFRCMEMembervbtx:FinancialInstitutionMemberus-gaap:NondesignatedMembervbtx:InterestRateCapsAndCorridorsMember2023-12-310001501570vbtx:FinancialInstitutionMemberus-gaap:NondesignatedMembervbtx:InterestRateCapsAndCorridorsMemberus-gaap:SecuredOvernightFinancingRateSofrMember2023-12-310001501570vbtx:FinancialInstitutionMemberus-gaap:NondesignatedMembervbtx:InterestRateCapsAndCorridorsMember2023-01-012023-12-310001501570us-gaap:CommitmentsToExtendCreditMember2024-06-300001501570us-gaap:CommitmentsToExtendCreditMember2023-12-310001501570vbtx:MortgageWarehouseCommitmentMember2024-06-300001501570vbtx:MortgageWarehouseCommitmentMember2023-12-310001501570us-gaap:StandbyLettersOfCreditMember2024-06-300001501570us-gaap:StandbyLettersOfCreditMember2023-12-310001501570vbtx:StockOptionAndEquityIncentivePlan2010Member2024-01-012024-06-300001501570vbtx:StockOptionAndEquityIncentivePlan2010Member2023-01-012023-06-300001501570vbtx:StockOptionAndEquityIncentivePlan2010Member2023-04-012023-06-300001501570vbtx:StockOptionAndEquityIncentivePlan2010Member2024-04-012024-06-300001501570vbtx:StockOptionAndEquityIncentivePlan2010Membervbtx:NonPerformanceBasedStockOptionsMember2024-01-012024-06-300001501570vbtx:StockOptionAndEquityIncentivePlan2010Membervbtx:NonPerformanceBasedStockOptionsMember2022-12-310001501570vbtx:StockOptionAndEquityIncentivePlan2010Membervbtx:NonPerformanceBasedStockOptionsMember2022-01-012022-12-310001501570vbtx:StockOptionAndEquityIncentivePlan2010Membervbtx:NonPerformanceBasedStockOptionsMember2023-01-012023-06-300001501570vbtx:StockOptionAndEquityIncentivePlan2010Membervbtx:NonPerformanceBasedStockOptionsMember2023-06-300001501570vbtx:A2022EquityPlanMember2024-04-012024-06-300001501570vbtx:A2022EquityPlanMember2023-04-012023-06-300001501570vbtx:A2022EquityPlanMember2024-01-012024-06-300001501570vbtx:A2022EquityPlanMember2023-01-012023-06-300001501570vbtx:VeritexGreenOmnibusPlanMember2024-04-012024-06-300001501570vbtx:VeritexGreenOmnibusPlanMember2023-04-012023-06-300001501570vbtx:VeritexGreenOmnibusPlanMember2024-01-012024-06-300001501570vbtx:VeritexGreenOmnibusPlanMember2023-01-012023-06-300001501570vbtx:A2022EquityPlanMembervbtx:NonPerformanceBasedStockOptionsMember2022-12-310001501570vbtx:A2022EquityPlanMembervbtx:NonPerformanceBasedStockOptionsMember2023-01-012023-06-300001501570vbtx:A2022EquityPlanMembervbtx:NonPerformanceBasedStockOptionsMember2023-06-300001501570vbtx:A2022EquityPlanMembervbtx:NonPerformanceBasedStockOptionsMember2023-12-310001501570vbtx:A2022EquityPlanMembervbtx:NonPerformanceBasedStockOptionsMember2024-01-012024-06-300001501570vbtx:A2022EquityPlanMembervbtx:NonPerformanceBasedStockOptionsMember2024-06-300001501570vbtx:NonPerformanceBasedRestrictedStockUnitsMembervbtx:A2022EquityPlanMember2022-12-310001501570vbtx:NonPerformanceBasedRestrictedStockUnitsMembervbtx:A2022EquityPlanMember2023-01-012023-06-300001501570vbtx:NonPerformanceBasedRestrictedStockUnitsMembervbtx:A2022EquityPlanMember2023-06-300001501570vbtx:NonPerformanceBasedRestrictedStockUnitsMembervbtx:A2022EquityPlanMember2023-12-310001501570vbtx:NonPerformanceBasedRestrictedStockUnitsMembervbtx:A2022EquityPlanMember2024-01-012024-06-300001501570vbtx:NonPerformanceBasedRestrictedStockUnitsMembervbtx:A2022EquityPlanMember2024-06-300001501570vbtx:A2022EquityPlanMembervbtx:PerformanceBasedRestrictedStockUnitsMember2022-12-310001501570vbtx:A2022EquityPlanMembervbtx:PerformanceBasedRestrictedStockUnitsMember2023-01-012023-06-300001501570vbtx:A2022EquityPlanMembervbtx:PerformanceBasedRestrictedStockUnitsMember2023-06-300001501570vbtx:A2022EquityPlanMembervbtx:PerformanceBasedRestrictedStockUnitsMember2023-12-310001501570vbtx:A2022EquityPlanMembervbtx:PerformanceBasedRestrictedStockUnitsMember2024-01-012024-06-300001501570vbtx:A2022EquityPlanMembervbtx:PerformanceBasedRestrictedStockUnitsMember2024-06-300001501570vbtx:VeritexGreenOmnibusPlanMembervbtx:RestrictedStockUnitsAndPerformanceStockBasedUnitsMember2024-06-300001501570vbtx:VeritexGreenOmnibusPlanMembervbtx:RestrictedStockUnitsAndPerformanceStockBasedUnitsMember2023-12-310001501570vbtx:VeritexGreenOmnibusPlanMembervbtx:RestrictedStockUnitsAndPerformanceStockBasedUnitsMember2023-06-300001501570vbtx:VeritexGreenOmnibusPlanMembervbtx:RestrictedStockUnitsAndPerformanceStockBasedUnitsMember2024-01-012024-06-300001501570vbtx:VeritexGreenOmnibusPlanMembervbtx:NonPerformanceBasedStockOptionsMember2022-12-310001501570vbtx:VeritexGreenOmnibusPlanMembervbtx:NonPerformanceBasedStockOptionsMember2023-01-012023-06-300001501570vbtx:VeritexGreenOmnibusPlanMembervbtx:NonPerformanceBasedStockOptionsMember2023-06-300001501570vbtx:VeritexGreenOmnibusPlanMembervbtx:NonPerformanceBasedStockOptionsMember2023-12-310001501570vbtx:VeritexGreenOmnibusPlanMembervbtx:NonPerformanceBasedStockOptionsMember2024-06-300001501570vbtx:VeritexGreenOmnibusPlanMembervbtx:NonPerformanceBasedStockOptionsMember2024-01-012024-06-300001501570vbtx:NonPerformanceBasedRestrictedStockUnitsMembervbtx:VeritexGreenOmnibusPlanMember2022-12-310001501570vbtx:NonPerformanceBasedRestrictedStockUnitsMembervbtx:VeritexGreenOmnibusPlanMember2023-01-012023-06-300001501570vbtx:NonPerformanceBasedRestrictedStockUnitsMembervbtx:VeritexGreenOmnibusPlanMember2023-06-300001501570vbtx:NonPerformanceBasedRestrictedStockUnitsMembervbtx:VeritexGreenOmnibusPlanMember2023-12-310001501570vbtx:NonPerformanceBasedRestrictedStockUnitsMembervbtx:VeritexGreenOmnibusPlanMember2024-01-012024-06-300001501570vbtx:NonPerformanceBasedRestrictedStockUnitsMembervbtx:VeritexGreenOmnibusPlanMember2024-06-300001501570vbtx:VeritexGreenOmnibusPlanMembervbtx:PerformanceBasedRestrictedStockUnitsMember2022-12-310001501570vbtx:VeritexGreenOmnibusPlanMembervbtx:PerformanceBasedRestrictedStockUnitsMember2023-01-012023-06-300001501570vbtx:VeritexGreenOmnibusPlanMembervbtx:PerformanceBasedRestrictedStockUnitsMember2023-06-300001501570vbtx:VeritexGreenOmnibusPlanMembervbtx:PerformanceBasedRestrictedStockUnitsMember2023-12-310001501570vbtx:VeritexGreenOmnibusPlanMembervbtx:PerformanceBasedRestrictedStockUnitsMember2024-01-012024-06-300001501570vbtx:VeritexGreenOmnibusPlanMembervbtx:PerformanceBasedRestrictedStockUnitsMember2024-06-300001501570vbtx:A2022EquityPlanMembervbtx:RestrictedStockUnitsAndPerformanceStockBasedUnitsMember2024-06-300001501570vbtx:A2022EquityPlanMembervbtx:RestrictedStockUnitsAndPerformanceStockBasedUnitsMember2023-12-310001501570vbtx:A2022EquityPlanMembervbtx:RestrictedStockUnitsAndPerformanceStockBasedUnitsMember2023-06-300001501570vbtx:A2022EquityPlanMembervbtx:RestrictedStockUnitsAndPerformanceStockBasedUnitsMember2024-01-012024-06-300001501570vbtx:GreenBancorpInc.2010StockOptionPlanMembervbtx:NonPerformanceBasedStockOptionsMember2022-12-310001501570vbtx:GreenBancorpInc.2010StockOptionPlanMembervbtx:NonPerformanceBasedStockOptionsMember2023-01-012023-06-300001501570vbtx:GreenBancorpInc.2010StockOptionPlanMembervbtx:NonPerformanceBasedStockOptionsMember2023-06-300001501570vbtx:GreenBancorpInc.2010StockOptionPlanMembervbtx:NonPerformanceBasedStockOptionsMember2023-12-310001501570vbtx:GreenBancorpInc.2010StockOptionPlanMembervbtx:NonPerformanceBasedStockOptionsMember2024-06-300001501570vbtx:GreenBancorpInc.2010StockOptionPlanMembervbtx:NonPerformanceBasedStockOptionsMember2024-01-012024-06-300001501570vbtx:VeritexCommunityBankMember2024-06-300001501570vbtx:VeritexCommunityBankMember2023-12-310001501570vbtx:VeritexCommunityBankMember2024-04-012024-06-300001501570vbtx:VeritexCommunityBankMember2024-01-012024-06-300001501570vbtx:VeritexCommunityBankMember2023-04-012023-06-300001501570vbtx:VeritexCommunityBankMember2023-01-012023-06-300001501570vbtx:VeritexHoldingsIncMember2024-04-012024-06-300001501570vbtx:VeritexHoldingsIncMember2024-01-012024-06-300001501570vbtx:VeritexHoldingsIncMember2023-04-012023-06-300001501570vbtx:VeritexHoldingsIncMember2023-01-012023-06-30




UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM10-Q
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2024
or
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to             .

Commission File Number: 001-36682
VERITEX HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
Texas 27-0973566
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) identification no.)
   
8214 Westchester Drive, Suite 800  
Dallas,Texas 75225
(Address of principal executive offices) (Zip code)
(972)349-6200
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, par value $0.01VBTXNasdaq Global Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer☒ Accelerated filer ☐
   
Non-accelerated filer☐ Smaller reporting company ☐
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of August 1, 2024, there were 54,385,930 outstanding shares of the registrant’s common stock, par value $0.01 per share.




VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Page
PART I — FINANCIAL INFORMATION 
3
4
Consolidated Balance Sheets
5
Consolidated Statements of Income
6
Consolidated Statements of Comprehensive Income (Loss)
7
Consolidated Statements of Changes in Stockholders’ Equity
8
Consolidated Statements of Cash Flows
10
Notes to Consolidated Financial Statements
11
45
80
81
PART II — OTHER INFORMATION 
82
82
82
83
84
































2



Glossary of Acronyms, Abbreviations, and Terms
The acronyms, abbreviations, and terms listed below are used in various sections of this Form 10-Q, including “Part I, Item 1. Financial Statements” and “Part I, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations."

ACLAllowance for Credit LossGreenGreen Bank
AFSAvailable-For-SaleHTMHeld-To-Maturity
AOCIAccumulated Other Comprehensive IncomeLHFSLoans Held for Sale
APICAdditional Paid-In CapitalLHILoans Held for Investment
ASCAccounting Standards CodificationLIBORLondon Interbank Offered Rate
ASUAccounting Standard UpdateLowerLower Holding Company
BOLIBank-Owned Life InsuranceM&AMergers and acquisitions
BoardBoard of Directors of Veritex Holdings, Inc.MBSMortgage-backed Securities
bpsBasis PointsMWMortgage Warehouse
BTFPBank Term Funding ProgramNACNorth Avenue Capital, LLC
CBLRCommunity Bank Leverage RatioNOOCRENon-owner Occupied CRE
CDCertificates of DepositOBSOff-Balance Sheet
CECLCurrent Expected Credit LossesOOCREOwner Occupied CRE
CET1Common Equity Tier 1OREOOther Real Estate Owned
CMOCollateralized Mortgage ObligationPCAPrompt Corrective Action
CRACommunity Reinvestment ActPCDPurchased Credit Deteriorated
CRECommercial Real EstatePSUPerformance-based Restricted stock units
DCFDiscounted Cash FlowRBCRisk-Based Capital
DFWDallas-Fort WorthRSURestricted stock units
EPSEarnings Per ShareRWARisk-Weighted Assets
Exchange ActSecurities Exchange Act of 1934, as amendedSarbanes-Oxley ActSarbanes-Oxley Act of 2002
FASBFinancial Accounting Standards BoardSBAU. S. Small Business Administration
FDICFederal Deposit Insurance CorporationSECSecurities and Exchange Commission
Federal ReserveThe Federal Reserve SystemSOFRSecured Overnight Financing Rate
FHLBFederal Home Loan BankTDBTexas Department of Banking
FRBFederal Reserve Bank of DallasThriveThrive Mortgage, LLC
GAAPGenerally Accepted Accounting Principles in the United States of AmericaUSDAUnited States Department of Agriculture
3



PART I. FINANCIAL INFORMATION 

Item 1. Financial Statements
4

VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
as of June 30, 2024 and December 31, 2023
(Dollars in thousands, except par value and share information) 
June 30,December 31,
20242023
(Unaudited)
ASSETS
Cash and due from banks$53,462 $58,914 
Interest bearing deposits in other banks598,375 570,149 
Total cash and cash equivalents651,837 629,063 
Debt securities AFS, at fair value1,172,122 1,076,639 
Debt securities HTM (fair value of $153,686 and $160,021, at June 30, 2024 and December 31, 2023, respectively)
177,232 180,403 
Equity securities21,797 21,521 
Investment in unconsolidated subsidiaries1,018 1,018 
FHLB Stock and FRB Stock53,070 53,699 
Total investments1,425,239 1,333,280 
LHFS57,046 79,072 
LHI, MW568,047 377,796 
LHI, excluding MW 9,209,094 9,206,544 
Less: ACL(113,431)(109,816)
Total LHI, net9,663,710 9,474,524 
BOLI84,233 84,833 
Premises and equipment, net105,222 105,727 
OREO24,256 — 
Intangible assets, net of accumulated amortization35,817 41,753 
Goodwill404,452 404,452 
Other assets232,518 241,633 
Total assets$12,684,330 $12,394,337 
LIABILITIES AND STOCKHOLDERS’ EQUITY  
Deposits:  
Noninterest-bearing deposits$2,416,727 $2,218,036 
Interest-bearing transaction and savings deposits3,979,454 4,348,385 
Certificates and other time deposits3,744,596 3,191,737 
Correspondent money market deposits584,067 580,037 
Total deposits10,724,844 10,338,195 
Accounts payable and other liabilities180,585 195,036 
Advances from FHLB— 100,000 
Subordinated debentures and subordinated notes230,285 229,783 
Total liabilities11,135,714 10,863,014 
Stockholders’ equity:  
Common stock, $0.01 par value:
Authorized shares - 75,000,000
Issued shares - 61,164,132 and 60,976,462 at June 30, 2024 and December 31, 2023, respectively
612 610 
APIC1,321,995 1,317,516 
Retained earnings473,801 444,242 
 AOCI(76,713)(63,463)
Treasury stock, 6,813,782 and 6,638,094 shares, at cost, at June 30, 2024 and December 31, 2023, respectively
(171,079)(167,582)
Total stockholders’ equity1,548,616 1,531,323 
Total liabilities and stockholders’ equity$12,684,330 $12,394,337 

See accompanying Notes to Consolidated Financial Statements.
5

VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
For the Three and Six Months Ended June 30, 2024 and 2023
(Dollars in thousands, except per share amounts)
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
INTEREST AND DIVIDEND INCOME
Interest and fees on loans$166,979 $163,727 $328,921 $315,434 
Debt securities15,408 10,166 29,103 21,154 
Deposits in financial institutions and Federal Funds sold7,722 7,507 15,772 13,041 
Equity securities and other investments1,138 1,118 2,038 2,526 
Total interest and dividend income191,247 182,518 375,834 352,155 
INTEREST EXPENSE
Transaction and savings deposits45,619 32,957 92,403 62,814 
Certificates and other time deposits44,811 28,100 85,303 49,067 
Advances from FHLB1,468 17,562 2,859 29,920 
Subordinated debentures and subordinated notes3,113 3,068 6,227 6,134 
Total interest expense95,011 81,687 186,792 147,935 
NET INTEREST INCOME96,236 100,831 189,042 204,220 
Provision for credit losses8,250 15,000 15,750 24,385 
(Benefit) provision for credit losses on unfunded commitments— (1,129)(1,541)368 
Net interest income after provision (benefit) for credit losses87,986 86,960 174,833 179,467 
NONINTEREST INCOME
Service charges and fees on deposit accounts4,974 5,272 9,870 10,289 
Loan fees2,207 1,520 4,717 3,584 
Loss on sales of debt securities— — (6,304)(5,321)
Government guaranteed loan income, net1,320 4,144 3,934 13,832 
Equity method investment income (loss)— 485 — (1,036)
Customer swap income326 983 775 1,196 
Other1,751 1,288 4,248 4,679 
Total noninterest income10,578 13,692 17,240 27,223 
NONINTEREST EXPENSE
Salaries and employee benefits32,790 28,650 66,155 60,515 
Occupancy and equipment4,585 4,827 9,262 9,800 
Professional and regulatory fees5,617 6,868 11,670 11,257 
Data processing and software expense5,097 4,709 9,953 9,429 
Marketing1,976 2,627 3,522 4,406 
Amortization of intangibles2,438 2,468 4,876 4,963 
Telephone and communications365 355 626 833 
Other10,273 6,693 19,193 12,609 
Total noninterest expense63,141 57,197 125,257 113,812 
Income before income tax expense35,423 43,455 66,816 92,878 
Provision for income taxes8,221 9,725 15,458 20,737 
NET INCOME$27,202 $33,730 $51,358 $72,141 
Basic EPS$0.50 $0.62 $0.94 $1.33 
Diluted EPS$0.50 $0.62 $0.94 $1.32 
See accompanying Notes to Consolidated Financial Statements.
6

VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Statements of Comprehensive Income (Loss) (Unaudited)
For the Three and Six Months Ended June 30, 2024 and 2023
(Dollars in thousands)
Three Months Ended June 30,Six Months Ended
June 30,
2024202320242023
NET INCOME$27,202 $33,730 $51,358 $72,141 
OTHER COMPREHENSIVE INCOME
Net unrealized (losses) gains on debt securities AFS:
Change in net unrealized losses on debt securities AFS during the period, net(4,599)(21,975)(15,020)(19,428)
(Accretion) amortization from transfer of debt securities from AFS to HTM(163)(165)2,762 3,457 
Reclassification adjustment for net losses included in net income— — 6,304 5,321 
Net unrealized losses on debt securities AFS(4,762)(22,140)(5,954)(10,650)
Net unrealized losses on derivative instruments designated as cash flow hedges(2,228)(15,033)(10,723)(7,955)
Other comprehensive loss, before tax(6,990)(37,173)(16,677)(18,605)
Income tax benefit(1,434)(8,494)(3,427)(4,821)
Other comprehensive loss, net of tax(5,556)(28,679)(13,250)(13,784)
COMPREHENSIVE INCOME$21,646 $5,051 $38,108 $58,357 

See accompanying Notes to Consolidated Financial Statements.


7

VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) 
For the Three and Six Months Ended June 30, 2024 and 2023
(Dollars in thousands, except share data)
Three Months Ended June 30, 2024
 Common StockTreasury StockAPICRetained
Earnings		AOCITotal 
 SharesAmountSharesAmount
Balance at March 31, 202454,495,961 $611 6,638,094 $(167,582)$1,319,144 $457,499 $(71,157)$1,538,515 
RSUs vested, net of 15,679 shares withheld to cover taxes
30,077 1 — — (316)— — (315)
Stock buyback(175,688)— 175,688 (3,497)— — — (3,497)
Stock based compensation— — — — 3,167 — 3,167 
Net income— — — — — 27,202 — 27,202 
Dividends paid— — — — — (10,900)— (10,900)
Other comprehensive loss— — — — — — (5,556)(5,556)
Balance at June 30, 202454,350,350 $612 6,813,782 $(171,079)$1,321,995 $473,801 $(76,713)$1,548,616 


Three Months Ended June 30, 2023
 Common StockTreasury StockAPICRetained
Earnings		AOCI 
 SharesAmountSharesAmountTotal
Balance at March 31, 202354,229,033 $609 6,638,094 $(167,582)$1,308,345 $406,873 $(54,508)$1,493,737 
RSUs vested, net of 2,960 shares withheld to cover taxes
18,425 — — — (56)— — (56)
Exercise of employee stock options, net of 2,343 shares withheld to cover exercise
13,334 — — — 231 — — 231 
Stock based compensation— — — — 3,167 — — 3,167 
Net income— — — — — 33,730 — 33,730 
Dividends paid— — — — — (10,850)— (10,850)
Other comprehensive loss— — — — — — (28,679)(28,679)
Balance at June 30, 202354,260,792 $609 6,638,094 $(167,582)$1,311,687 $429,753 $(83,187)$1,491,280 

See accompanying Notes to Consolidated Financial Statements.


8

VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) 
For the Three and Six Months Ended June 30, 2024 and 2023
(Dollars in thousands, except share data)

Six Months Ended June 30, 2024
 Common StockTreasury StockAPICRetained
Earnings		AOCI 
 SharesAmountSharesAmountTotal
Balance at December 31, 202354,338,368 $610 6,638,094 $(167,582)$1,317,516 $444,242 $(63,463)$1,531,323 
RSUs vested, net of 84,713 shares withheld to cover taxes
187,670 2 — — (1,577)— — (1,575)
Stock buyback(175,688)— 175,688 (3,497)— — — (3,497)
Stock based compensation— — — — 6,056 — — 6,056 
Net income— — — — — 51,358 — 51,358 
Dividends paid— — — — — (21,799)— (21,799)
Other comprehensive loss— — — — — — (13,250)(13,250)
Balance at June 30, 202454,350,350 $612 6,813,782 $(171,079)$1,321,995 $473,801 $(76,713)$1,548,616 


Six Months Ended June 30, 2023
 Common StockTreasury StockAPICRetained
Earnings		AOCI 
 SharesAmountSharesAmountTotal
Balance at December 31, 202254,029,955 $607 6,638,094 $(167,582)$1,306,852 $379,299 $(69,403)$1,449,773 
RSUs vested, net of 74,425 shares withheld to cover taxes
179,506 2 — — (1,984)— — (1,982)
Exercise of employee stock options, net of 121 and 9,729 shares withheld to cover taxes and exercise, respectively
51,331 — — — 765 — — 765 
Stock based compensation— — — — 6,054 — — 6,054 
Net income— — — — — 72,141 — 72,141 
Dividends paid— — — — — (21,687)— (21,687)
Other comprehensive loss— — — — — — (13,784)(13,784)
Balance at June 30, 202354,260,792 $609 6,638,094 $(167,582)$1,311,687 $429,753 $(83,187)$1,491,280 

See accompanying Notes to Consolidated Financial Statements.
9

VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows (Unaudited)
For the Six Months Ended June 30, 2024 and 2023
(Dollars in thousands)

 For the Six Months Ended June 30,
 20242023
Cash flows from operating activities:
Net income$51,358 $72,141 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of fixed assets and intangibles9,525 10,041 
Net (accretion) amortization of time deposit premium, debt discount and debt issuance costs(1,685)478 
Provision for credit losses and unfunded commitments14,209 24,753 
Accretion of loan discount(950)(1,897)
Stock-based compensation expense6,056 6,054 
Excess tax expense from stock compensation410 153 
Net (accretion) amortization of premiums on debt securities(482)1,718 
Unrealized loss on equity securities recognized in earnings147 31 
Change in cash surrender value and mortality rates of BOLI600 121 
Loss on sales of debt securities6,304 5,321 
Change in fair value of government guaranteed loans using fair value option(638)(616)
Gain on sales of mortgage LHFS(47)(46)
Gain on sales of government guaranteed loans(4,612)(15,598)
Servicing asset recoveries, net (279)(862)
Originations of LHFS(24,103)(39,877)
Proceeds from sales of LHFS39,530 34,273 
Equity method investment loss— 1,036 
Decrease (increase) in other assets13,864 (6,527)
(Decrease) increase in accounts payable and other liabilities(23,647)7,620 
Net cash provided by operating activities85,560 98,317 
Cash flows from investing activities:  
Purchases of AFS debt securities(415,605)(189,668)
Proceeds from sales of AFS debt securities113,794 109,793 
Proceeds from maturities, calls and pay downs of AFS debt securities195,263 197,634 
Maturity, calls and paydowns of HTM debt securities2,460 2,107 
Proceeds (purchases) of other investments206 (16,475)
Net loans originated(238,191)(291,810)
Proceeds from sale of government guaranteed loans19,220 79,812 
Net (disposals) additions to premises and equipment(1,898)337 
Net cash used in investing activities(324,751)(108,270)
Cash flows from financing activities:  
Net increase in deposits388,836 110,701 
Net (decrease) increase in advances from FHLB(100,000)150,000 
Payments to tax authorities for stock-based compensation(1,575)(1,982)
Proceeds from exercise of employee stock options— 765 
Purchase of treasury stock(3,497)— 
Dividends paid(21,799)(21,687)
Net cash provided by financing activities261,965 237,797 
Net increase in cash and cash equivalents22,774 227,844 
Cash and cash equivalents at beginning of period629,063 436,077 
Cash and cash equivalents at end of period$651,837 $663,921 
See accompanying Notes to Consolidated Financial Statements.
10

VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Dollars in thousands, except for per share amounts) 

1. Operations and Summary of Significant Accounting Policies
Organization and Nature of Business
In this report, the words “Veritex,” “the Company,” “we,” “us,” and “our” refer to the combined entities of Veritex Holdings, Inc. and its subsidiaries, including Veritex Community Bank. The word “Holdco” refers to Veritex Holdings, Inc. The word “the Bank” refers to Veritex Community Bank.
Veritex is a Texas state banking organization, with corporate offices in Dallas, Texas, and currently operates 19 branches located in the Dallas-Fort Worth metroplex and 11 branches in the Houston metropolitan area. One such branch in the Dallas-Fort Worth metroplex was opened during the second quarter 2024. The Bank provides a full range of banking services, including commercial and retail lending and the acceptance of checking and savings deposits, to individual and corporate customers. The TDB and the Board of Governors of the Federal Reserve are the primary regulators of the Company and the Bank, and both regulatory agencies perform periodic examinations to ensure regulatory compliance.
Basis of Presentation
The accompanying unaudited consolidated financial statements include the accounts of Veritex Holdings, Inc. and its subsidiaries, including the Bank.

The accompanying unaudited consolidated financial statements have been prepared in accordance with GAAP, but do not include all of the information and footnotes required for complete financial statements. Intercompany transactions and balances are eliminated in consolidation. In management’s opinion, these unaudited consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair statement of the Company’s consolidated balance sheets at June 30, 2024 and December 31, 2023, consolidated statements of income, consolidated statements of comprehensive income (loss) and consolidated changes in stockholders’ equity for the three and six months ended June 30, 2024 and 2023 and consolidated statements of cash flows for the six months ended June 30, 2024 and 2023.

Accounting measurements at interim dates inherently involve greater reliance on estimates than at year end and the results for the interim periods shown herein are not necessarily indicative of results to be expected for the full year due in part to global economic and financial market conditions, interest rates, access to sources of liquidity, market competition and interruptions of business processes. These unaudited consolidated financial statements have been prepared in accordance with GAAP for interim financial information and the instructions to Quarterly Reports on Form 10-Q adopted by the SEC. These unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K, as filed with the SEC on February 28, 2024.

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

11

EPS
EPS is based upon the weighted average shares outstanding. The table below sets forth the reconciliation between weighted average shares used for calculating basic and diluted EPS for the three and six months ended June 30, 2024 and 2023:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Numerator:
Net income$27,202 $33,730 $51,358 $72,141 
Denominator:
Weighted average shares outstanding for basic EPS54,457 54,247 54,451 54,199 
Dilutive effect of employee stock-based awards366 239 381 347 
Adjusted weighted average shares outstanding54,823 54,486 54,832 54,546 
EPS:
Basic$0.50 $0.62 $0.94 $1.33 
Diluted$0.50 $0.62 $0.94 $1.32 
Antidilutive shares912 31 1,062 231 
For the three months ended June 30, 2024, there were 912 antidilutive shares excluded from the diluted EPS weighted average shares outstanding, 301 relating to RSUs and 611 relating to stock options. For the six months ended June 30, 2024, there were 1,062 antidilutive shares excluded from the diluted EPS weighted average shares outstanding, 450 relating to RSUs and 612 relating to stock options.

For the three months ended June 30, 2023, there were 31 antidilutive shares excluded from the diluted EPS weighted average shares outstanding, 18 related to RSUs and 13 related to stock options. For the six months ended June 30, 2023, there were 231 antidilutive shares excluded from the diluted EPS weighted average shares outstanding, 180 related to RSUs and 51 related to stock options.

Cost Method Accounting

The Company follows ASC 325-20, Cost Method Investments, to account for its ownership interest in noncontrolled entities. Under ASC 325-20, equity securities that do not have readily determinable fair values (i.e., non-marketable equity securities) and are not required to be accounted for under the equity method are typically carried at cost (i.e., cost method investments). Investments of this nature are initially recorded at cost. Income is recorded for dividends received that are distributed from net accumulated earnings of the noncontrolled entity subsequent to the date of investment. Dividends received in excess of earnings subsequent to the date of investment are considered a return of investment and are recorded as reductions in the cost of the investment. Investments are written down only when there is clear evidence that a decline in value that is other than temporary has occurred.

Recent Accounting Pronouncements

ASU 2024-01, “Compensation — Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards” (“ASU 2024-01”) clarifies how an entity determines whether a profits interest or similar award is within the scope of Topic 718 or is not a share-based payment arrangement and therefore within the scope of other guidance. ASU 2024-01 provides an illustrative example with multiple fact patterns and also amends certain language in the “Scope” and “Scope Exceptions” sections of Topic 718 to improve its clarity and operability without changing the guidance. Entities can apply the amendments either retrospectively to all prior periods presented in the financial statements or prospectively to profits interest and similar awards granted or modified on or after the date of adoption. If prospective application is elected, an entity must disclose the nature of and reason for the change in accounting principle. ASU 2024-01 is effective January 1, 2025, including interim periods, and is not expected to have a significant impact on our financial statements.

ASU 2024-02 “Codification Improvements” (“ASU 2024-02”) amends the Codification to remove references to various concepts statements and impacts a variety of topics in the Codification. The amendments apply to all reporting entities within the scope of the affected accounting guidance, but in most instances the references removed are extraneous and not
12

required to understand or apply the guidance. Generally, the amendments in ASU 2024-02 are not intended to result in significant accounting changes for most entities. ASU 2024-02 is effective January 1, 2025 and is not expected to have a significant impact on our financial statements.


2. Supplemental Statement of Cash Flows
Other supplemental cash flow information is presented below:

 Six Months Ended June 30,
 20242023
(in thousands)
Supplemental Disclosures of Cash Flow Information:  
Cash paid for interest$194,144 $127,174 
Cash paid for income taxes1,826 23,500 

3. Share Transactions    
Stock Buyback Program

    On March 28, 2024, the Board authorized a stock buyback program (the "Stock Buyback Program") pursuant to which the Company could, from time to time, purchase up to $50,000 of its outstanding common stock in the aggregate. The Stock Buyback Program has an expiration date of March 31, 2025 and may be suspended, terminated, amended or modified by the Board at any time without prior notice at the Board’s discretion. The shares may be repurchased in the open market or in privately negotiated transactions from time to time, depending upon market conditions and other factors, and in accordance with applicable regulations of the SEC. The Stock Buyback Program does not obligate the Company to purchase any shares and the program may be terminated or amended by the Board at any time prior to its expiration.

Shares repurchased through the periods indicated are as follows:

Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Numbers of shares repurchased175,688 — 175,688 — 
Weighted average price per share$19.90 $— $19.90 $— 


4. Securities
Equity Securities With a Readily Determinable Fair Value
The Company held equity securities with a fair value of $9,750 and $9,897 at June 30, 2024 and December 31, 2023, respectively. The Company did not realize a loss on equity securities with a readily determinable fair value during the three or six months ended June 30, 2024 or 2023. The gross unrealized loss recognized on equity securities with readily determinable fair values recorded in other noninterest income in the Company’s consolidated statements of income were as follows:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Unrealized loss recognized on equity securities with a readily determinable fair value$(42)$(157)$(147)$(31)


13

Equity Securities Without a Readily Determinable Fair Value
The Company held equity securities without a readily determinable fair value and measured at aggregate cost of $38,358 and $11,624 as of June 30, 2024 and December 31, 2023, respectively.
Securities Purchased Under Agreements to Resell
We held no securities purchased under agreements to resell and we recognized no interest income on securities purchased under agreements to resell during the three or six months ended June 30, 2024 or 2023. Securities purchased under agreements to resell typically mature 30 days from the settlement date, qualify as a secured borrowing and are measured at amortized cost.
Debt Securities
Debt securities have been classified in the consolidated balance sheets according to management’s intent. The amortized cost, related gross unrealized gains and losses, ACL and the fair value of AFS and HTM debt securities are as follows:
 June 30, 2024
 Amortized CostGross Unrealized GainsGross Unrealized LossesACLFair Value
AFS
Corporate bonds$263,765 $1,412 $26,946 $— $238,231 
Municipal securities14,251 — 3,508 — 10,743 
MBS228,915 2,676 15,236 — 216,355 
CMO564,038 2,913 49,528 — 517,423 
Asset-backed securities118,661 802 2,466 — 116,997 
Collateralized loan obligations72,625 30 282 — 72,373 
 $1,262,255 $7,833 $97,966 $— $1,172,122 
Amortized CostGross Unrealized GainsGross Unrealized LossesACLFair Value
HTM
MBS$32,249 $— $6,764 $— $25,485 
CMO33,345 — 4,894 — 28,451 
Municipal securities111,638 — 11,888 — 99,750 
$177,232 $— $23,546 $— $153,686 

14

 December 31, 2023
 Amortized CostGross Unrealized GainsGross Unrealized LossesACLFair Value
AFS
Corporate bonds$244,652 $1,034 $29,566 $— $216,120 
Municipal securities46,631 108 3,258 — 43,481 
MBS194,486 4,430 13,465 — 185,451 
CMO563,421 4,634 46,999 — 521,056 
Asset-backed securities47,738 1,045 2,130 — 46,653 
Collateralized loan obligations64,250 — 372 — 63,878 
 $1,161,178 $11,251 $95,790 $— $1,076,639 
Amortized CostGross Unrealized GainsGross Unrealized LossesACLFair Value
HTM
MBS$33,716 $— $6,037 $— $27,679 
CMO34,483 — 4,567 — 29,916 
Municipal securities112,204 86 9,864 — 102,426 
$180,403 $86 $20,468 $— $160,021 
MBS are commercial MBS, secured by commercial properties, and residential MBS, generally secured by single-family residential properties. All MBS included in the table above were issued by U.S. government agencies or corporations.
The Company did not transfer any debt securities from AFS to HTM during the six months ended June 30, 2024. For the year ended December 31, 2022, the Company elected to transfer 25 AFS debt securities with an aggregate fair value of $117,001 to a classification of HTM debt securities on January 1, 2022. In accordance with FASB ASC 320-10-35-10, the transfer from AFS to HTM was recorded at the fair value of the AFS debt securities at the time of transfer. The net unrealized holding gain retained in AOCI for securities transferred from AFS to HTM was $2,762 and $3,122 at June 30, 2024 and December 31, 2023, respectively.
The following tables disclose the Company’s debt securities in an unrealized loss position, aggregated by investment category and length of time that individual debt securities have been in a continuous loss position:
15

 June 30, 2024
 Less Than 12 Months12 Months or MoreTotals
 Fair
Value		Unrealized
Loss		Fair
Value		Unrealized
Loss		Fair
Value		Unrealized
Loss
AFS
Corporate bonds$37,363 $6,315 $175,100 $20,631 $212,463 $26,946 
Municipal securities8,631 3,422 2,112 86 10,743 3,508 
MBS22,308 38 84,357 15,198 106,665 15,236 
CMO72,092 1,699 330,155 47,829 402,247 49,528 
Asset-backed securities54,252 262 13,574 2,204 67,826 2,466 
Collateralized loan obligations12,000 282 — — 12,000 282 
 $206,646 $12,018 $605,298 $85,948 $811,944 $97,966 
HTM
MBS$— $— $25,951 $6,764 $25,951 $6,764 
CMO— — 28,249 4,894 28,249 4,894 
Municipal securities22,624 4,032 76,411 7,856 99,035 11,888 
 $22,624 $4,032 $130,611 $19,514 $153,235 $23,546 
 December 31, 2023
 Less Than 12 Months12 Months or MoreTotals
 Fair
Value		Unrealized LossFair
Value		Unrealized LossFair
Value		Unrealized Loss
AFS
Corporate bonds$34,989 $5,970 $162,148 $23,596 $197,137 $29,566 
Municipal securities6,792 45 22,052 3,213 28,844 3,258 
MBS— — 104,486 13,465 104,486 13,465 
CMO— — 419,044 46,999 419,044 46,999 
Asset-backed securities9,011 1,559 8,847 571 17,858 2,130 
Collateralized loan obligations— — 63,878 372 63,878 372 
 $50,792 $7,574 $780,455 $88,216 $831,247 $95,790 
HTM
MBS$— $— $27,679 $6,037 $27,679 $6,037 
CMO— — 29,916 4,567 29,916 4,567 
Municipal securities7,845 270 79,713 9,594 87,558 9,864 
$7,845 $270 $137,308 $20,198 $145,153 $20,468 

Management evaluates AFS debt securities in unrealized loss positions to determine whether the impairment is due to credit-related factors or noncredit-related factors. Consideration is given to (1) the extent to which the fair value is less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value.
The number of AFS debt securities in an unrealized loss position totaled 127 and 142 at June 30, 2024 and December 31, 2023, respectively. Management does not have the intent to sell any of these debt securities and believes that it is more likely than not that the Company will not have to sell any such debt securities before a recovery of cost. The fair value is expected to recover as the debt securities approach their maturity date or repricing date or if market yields for such investments decline. Accordingly, as of June 30, 2024, management believes that the unrealized losses detailed in the previous table are due to noncredit-related factors, including changes in interest rates and other market conditions, and therefore no losses have been recognized in the Company’s consolidated statements of income.
16

The following table presents the activity in the ACL for AFS debt securities:
 Six Months ended June 30,
20242023
ACL on debt securities:
   Beginning balance$— $— 
   Credit loss expense— 885 
Ending balance$— $885 

    The amortized costs and estimated fair values of AFS and HTM debt securities, by contractual maturity, as of the dates indicated, are shown in the table below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. MBS, CMOs, asset-backed securities, and collateralized loan obligations typically are issued with stated principal amounts, and the securities are backed by pools of mortgage loans and other loans that have varying maturities. The terms of MBS, CMOs, asset-backed securities, and collateralized loan obligations thus approximates the terms of the underlying mortgages and loans and can vary significantly due to prepayments. Therefore, these securities are not included in the maturity categories below.
June 30, 2024
AFSHTM
Amortized CostFair ValueAmortized CostFair Value
Due in one year or less$2,002 $1,992 $3,958 $3,944 
Due from one year to five years62,231 61,737 894 850 
Due from five years to ten years183,536 161,824 19,562 18,946 
Due after ten years30,247 23,421 87,224 76,010 
278,016 248,974 111,638 99,750 
MBS and CMO792,953 733,778 65,594 53,936 
Asset-backed securities118,661 116,997 — — 
Collateralized loan obligations72,625 72,373 — — 
$1,262,255 $1,172,122 $177,232 $153,686 
December 31, 2023
AFSHTM
Amortized CostFair ValueAmortized CostFair Value
Due in one year or less$2,018 $1,906 $— $— 
Due from one year to five years46,645 46,682 4,445 4,448 
Due from five years to ten years188,526 163,397 12,806 12,628 
Due after ten years54,094 47,616 94,953 85,350 
291,283 259,601 112,204 102,426 
MBS and CMO757,907 706,507 68,199 57,595 
Asset-backed securities47,738 46,653 — — 
Collateralized loan obligations64,250 63,878 — — 
$1,161,178 $1,076,639 $180,403 $160,021 
17

Proceeds from sales of debt securities AFS and gross gains and losses for the six months ended June 30, 2024 and 2023 were as follows:
Six Months Ended June 30,
20242023
Proceeds from sales $113,794 $109,793 
Gross realized losses 6,304 5,321 
As of June 30, 2024 and December 31, 2023, there were no holdings of securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of stockholders' equity. There was a blanket floating lien on all debt securities held by the Company to secure FHLB advances as of June 30, 2024 and December 31, 2023.
5. LHI and ACL
LHI in the accompanying consolidated balance sheets are summarized as follows:
 June 30, 2024December 31, 2023
LHI, carried at amortized cost:
Real estate:        
Construction and land$1,536,580 $1,734,254 
Farmland30,512 31,114 
1 - 4 family residential917,402 937,119 
Multi-family residential748,740 605,817 
OOCRE806,285 794,088 
NOOCRE2,369,848 2,350,725 
Commercial
2,798,260 2,752,063 
MW568,047 377,796 
Consumer9,245 10,149 
$9,784,919 $9,593,125 
Deferred loan fees, net(7,778)(8,785)
ACL(113,431)(109,816)
Total LHI, net$9,663,710 $9,474,524 
Included in the total LHI, net, as of June 30, 2024 and December 31, 2023 was an accretable discount related to purchased performing and PCD loans acquired in the approximate amounts of $4,780 and $5,334, respectively. The discount is being accreted into income on a level-yield basis over the life of the loans. In addition, included in the net loan portfolio as of June 30, 2024 and December 31, 2023 is a discount on retained loans from sale of originated SBA and USDA loans of $8,616 and $7,629, respectively.
During the year ended December 31, 2022, the Company purchased $223,924 in pooled residential real estate loans at a net discount, with a remaining balance of $158,367 as of June 30, 2024. The remaining net purchase discount of $2,779 and $3,231 related to these 1-4 family residential loans purchased is included in the total LHI, net, as of June 30, 2024 and December 31, 2023, respectively. No additional pooled residential real estate loans have been repurchased since 2022.
ACL
The Company’s estimate of the ACL reflects losses expected over the remaining contractual life of the assets. The activity in the ACL related to LHI is as follows:
18

 Three Months Ended June 30, 2024
 Construction and LandFarmlandResidentialMultifamilyOOCRENOOCRECommercialMWConsumerTotal
Balance at beginning of the period$19,781 $107 $11,516 $6,339 $9,802 $31,137 $32,791 $404 $155 $112,032 
Credit (benefit) loss expense non-PCD loans1,113 (8)(2,310)(387)3,092 4,195 2,011 871 (418)8,159 
Credit (benefit) loss expense PCD loans— — 6 — 86 — (1)— — 91 
Charge-offs— — (31)(198)— (1,969)(5,601)— (30)(7,829)
Recoveries— — — — 120 — 361 — 497 978 
Ending Balance$20,894 $99 $9,181 $5,754 $13,100 $33,363 $29,561 $1,275 $204 $113,431 
 Three Months Ended June 30, 2023
 Construction and LandFarmlandResidentialMultifamilyOOCRENOOCRECommercialConsumerTotal
Balance at beginning of the period$17,314 $168 $9,541 $3,484 $8,813 $26,238 $32,717 $419 $98,694 
Credit (benefit) loss expense non-PCD loans831 2 (331)1,223 (1,286)9,914 5,642 (45)15,950 
(Benefit) credit loss expense PCD loans— — (2)— (8)(212)(728)— (950)
Charge-offs— — — — — (8,215)(3,540)(92)(11,847)
Recoveries— — 1 — — 150 106 46 303 
Ending Balance$18,145 $170 $9,209 $4,707 $7,519 $27,875 $34,197 $328 $102,150 
Six Months Ended June 30, 2024
Construction and LandFarmlandResidentialMultifamilyOOCRENOOCRECommercialMWConsumerTotal
Balance at beginning of the period$21,032 $101 $9,539 $4,882 $10,252 $27,729 $35,886 $260 $135 $109,816 
(Benefit) credit loss expense non-PCD loans(138)(2)(332)1,070 3,139 15,848 (125)1,015 (376)20,099 
Credit (benefit) expense PCD loans— — 4 — (291)(3,952)(110)— — (4,349)
Charge-offs— — (31)(198)(120)(6,262)(6,547)— (101)(13,259)
Recoveries— — 1 — 120 — 457 — 546 1,124 
Ending Balance$20,894 $99 $9,181 $5,754 $13,100 $33,363 $29,561 $1,275 $204 $113,431 

19

Six Months Ended June 30, 2023
Construction and LandFarmlandResidentialMultifamilyOOCRENOOCRECommercialConsumerTotal
Balance at beginning of the period$13,120 $127 $9,533 $2,607 $8,707 $26,704 $30,142 $112 $91,052 
Credit (benefit) loss expense non-PCD loans5,071 43 (319)2,100 (1,048)9,415 8,638 318 24,218 
(Benefit) credit expense PCD loans(46)— (7)— (24)(179)(462)— (718)
Charge-offs— — — — (116)(8,215)(4,591)(154)(13,076)
Recoveries— — 2 — — 150 470 52 674 
Ending Balance$18,145 $170 $9,209 $4,707 $7,519 $27,875 $34,197 $328 $102,150 
The majority of the Company's loan portfolio consists of loans to businesses and individuals in the Dallas-Fort Worth metroplex and the Houston metropolitan area. This geographic concentration subjects the loan portfolio to the general economic conditions within these areas. The risks created by this concentration have been considered by management in the determination of the adequacy of the ACL.
A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans:
June 30, 2024December 31, 2023
 
Real Property(1)
ACL Allocation
Real Property(1)
ACL Allocation
        
OOCRE$— $— $3,059 $47 
NOOCRE11,531 — 21,169 — 
Commercial15,013 2,417 20,711 3,339 
Total$26,544 $2,417 $44,939 $3,386 
(1) Loans reported exclude PCD loans that transitioned upon adoption of ASC 326 and accounted for on a pooled basis.

Nonaccrual and Past Due Loans
Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due in accordance with the terms of the loan agreement. Loans are placed on nonaccrual status when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. Loans may be placed on nonaccrual status regardless of whether or not such loans are considered past due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.
20

Nonaccrual loans aggregated by class of loans, as of June 30, 2024 and December 31, 2023, were as follows:
 June 30, 2024December 31, 2023
NonaccrualNonaccrual With No ACLNonaccrualNonaccrual With No ACL
        
Construction and land$6,578 $6,578 $6,793 $6,793 
1 - 4 family residential2,006 2,006 1,965 1,965 
OOCRE5,702 5,702 9,719 9,493 
NOOCRE14,041 14,041 33,479 33,479 
Commercial30,263 9,174 40,868 10,610 
Consumer20 20 24 24 
Total$58,610 $37,521 $92,848 $62,364 
    There were $73 and $13,715 of PCD loans that are not accounted for on a pooled basis included in nonaccrual loans at June 30, 2024 and December 31, 2023, respectively.
    During the three months ended June 30, 2024 and 2023, interest income not recognized on nonaccrual loans was $763 and $1,996, respectively. During the six months ended June 30, 2023, interest income not recognized on non-accrual loans was $1,544 and $2,768, respectively.
An age analysis of past due loans, aggregated by class of loans and including past due nonaccrual loans, as of June 30, 2024 and December 31, 2023, is as follows:
 June 30, 2024
 30 to 59 Days60 to 89 Days90 Days or GreaterTotal Past DueTotal CurrentTotal
Loans		Total 90 Days Past Due and Still Accruing
Real estate:                            
    Construction and land$276 $— $6,578 $6,854 $1,529,726 $1,536,580 $— 
    Farmland— — — — 30,512 30,512 — 
    1 - 4 family residential3,148 719 1,212 5,079 912,323 917,402 143 
    Multi-family residential— — — — 748,740 748,740 — 
    OOCRE1,078 779 5,702 7,559 798,726 806,285 — 
    NOOCRE118 3,478 11,654 15,250 2,354,598 2,369,848 — 
Commercial5,760 702 9,995 16,457 2,781,803 2,798,260 — 
MW— — — — 568,047 568,047 — 
Consumer— 24 — 24 9,221 9,245 — 
Total$10,380 $5,702 $35,141 $51,223 $9,733,696 $9,784,919 $143 


21

 December 31, 2023
 30 to 59 Days60 to 89 Days90 Days or GreaterTotal Past DueTotal CurrentTotal
Loans
Total 90 Days Past Due and Still Accruing(2)
Real estate:                            
Construction and land$29,379 $— $6,793 $36,172 $1,698,082 $1,734,254 $— 
Farmland— — — — 31,114 31,114 — 
1 - 4 family residential4,359 2,535 3,691 10,585 926,534 937,119 1,726 
Multi-family residential15,095 — — 15,095 590,722 605,817 — 
OOCRE916 114 10,185 11,215 782,873 794,088 466 
NOOCRE3,182 642 20,547 24,371 2,326,354 2,350,725 783 
Commercial3,485 1,394 9,122 14,001 2,738,062 2,752,063 — 
MW— — — — 377,796 377,796 — 
Consumer76 — — 76 10,073 10,149 — 
Total$56,492 $4,685 $50,338 $111,515 $9,481,610 $9,593,125 $2,975 

Loans 90 days past due and still accruing interest are considered well-secured and in the process of collection as of the reporting date with plans in place for the borrowers to bring the notes fully current. The Company believes that it will collect all principal and interest due on each of the loans 90 days past due and still accruing.
Modifications to Borrowers Experiencing Financial Difficulty
The Company adopted ASU 2022-02, Financial Instruments - Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures, effective January 1, 2023. The amendments in ASU 2022-02 eliminated the recognition and measure of troubled debt restructurings and enhanced disclosures for loan modifications to borrowers experiencing financial difficulty.
An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification. Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the ACL (due to the measurement methodologies used to estimate the allowance), a change to the ACL is generally not recorded upon modification.
The following table shows the amortized cost basis at the end of the reporting period of the loans modified to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of concession granted during the six months ended June 30, 2024:
Loan Modifications Made to Borrowers Experiencing Financial Difficulty
Interest Rate ReductionFinancial Impact
 Amortized Cost Basis% of Loan Class
NOOCRE$28,386 1.2 %Interest rate reduced longer than 3 months
Term Extension
Amortized Cost Basis% of Loan ClassFinancial Impact
Construction and land$11,714 0.8 %Principal and interest payments deferred longer than three months
NOOCRE$3,407 0.1 %Principal and interest payments deferred longer than three months
Commercial908 — %Principal and interest payments deferred longer than three months
$16,029 
22


Combination - Interest Rate Reduction and Term Extension
Amortized Cost Basis% of Loan ClassFinancial Impact
NOOCRE$45,762 1.9 %Principal payments deferred and interest rate reduced longer than three months
Commercial4,631 0.2 %Principal payments deferred and interest rate reduced longer than three months
$50,393 
No modifications to borrowers in financial difficulty had a payment default during the period and were modified in the 12 months before default to borrowers experiencing financial difficulty.
The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table depicts the performance of loans that have been modified in the last 12 months:
Payment Status
 Current30-59 Days Past Due60-89 Days Past Due90+ Days Past Due
Construction and land$11,714 $— $— $— 
NOOCRE76,148 — — 1,407 
Commercial21,367 — — 1,917 
Total$109,229 $— $— $3,324 
The Company has not committed to lend additional amounts to customers with outstanding loans classified as Troubled Loan Modifications as of June 30, 2024 or December 31, 2023.
Credit Quality Indicators
    From a credit risk standpoint, the Company classifies its loans in one of the following categories: (i) pass, (ii) special mention, (iii) substandard or (iv) doubtful. Loans classified as loss are charged-off. Loans not rated special mention, substandard, doubtful or loss are classified as pass loans.
    The classifications of loans reflect a judgment about the risks of default and loss associated with the loan. The Company reviews the ratings on criticized credits monthly. Ratings are adjusted to reflect the degree of risk and loss that is felt to be inherent in each credit as of each monthly reporting period. All classified credits are evaluated for impairment. If impairment is determined to exist, a specific reserve is established. The Company’s methodology is structured so that specific reserves are increased in accordance with deterioration in credit quality (and a corresponding increase in risk and loss) or decreased in accordance with improvement in credit quality (and a corresponding decrease in risk and loss).
    Credits rated special mention show clear signs of financial weaknesses or deterioration in credit worthiness, however, such concerns are generally not so pronounced that the Company expects to experience significant loss within the short-term. Such credits typically maintain the ability to perform within standard credit terms and credit exposure is not as prominent as credits with a lower rating.
    Credits rated substandard are those in which the normal repayment of principal and interest may be, or has been, jeopardized by reason of adverse trends or developments of a financial, managerial, economic or political nature, or important weaknesses which exist in collateral. A protracted workout on these credits is a distinct possibility. Prompt corrective action is therefore required to strengthen the Company’s position, and/or to reduce exposure and to assure that adequate remedial measures are taken by the borrower. Credit exposure becomes more likely in such credits and a serious evaluation of the secondary support to the credit is performed.
23

    Credits rated doubtful are those in which full collection of principal appears highly questionable, and in which some degree of loss is anticipated, even though the ultimate amount of loss may not yet be certain and/or other factors exist which could affect collection of debt. Based upon available information, positive action by the Company is required to avert or minimize loss. Credits rated doubtful are generally also placed on non-accrual.
    Credits classified as PCD are those that, at acquisition date, have experienced a more-than-insignificant deterioration in credit quality since origination. All loans considered to be purchased-credit impaired loans prior to January 1, 2020 were converted to PCD loans upon adoption of ASC 326. The Company elected to maintain pools of loans that were previously accounted for under ASC 310-30 and will continue to account for these pools as a unit of account. Loans are only removed from the existing pools if they are foreclosed, written off, paid off, or sold.
The Company considers the guidance in ASC 310-20 when determining whether a modification, extension or renewal of a loan constitutes a current period origination. Generally, current period renewals of credit are re-underwritten at the point of renewal and considered current period originations for purposes of the table below. Based on the most recent analysis performed, the risk category of loans by class of loans based on year or origination is as follows:
 
Term Loans Amortized Cost Basis by Origination Year1
 20242023202220212020PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
As of June 30, 2024
Construction and land:
Pass$54,692 $96,741 $788,851 $310,150 $34,879 $6,125 $204,176 $— $1,495,614 
Special mention— 22,417 7,016 4,955 — — — — 34,388 
Substandard— — 6,547 — 31 — — — 6,578 
Total construction and land$54,692 $119,158 $802,414 $315,105 $34,910 $6,125 $204,176 $— $1,536,580 
Construction and land gross charge-offs$— $— $— $— $— $— $— $— $— 
Farmland:
Pass$130 $2,505 $4,147 $— $17,728 $4,895 $1,107 $— $30,512 
Total farmland$130 $2,505 $4,147 $— $17,728 $4,895 $1,107 $— $30,512 
Farmland gross charge-offs$— $— $— $— $— $— $— $— $— 
1 - 4 family residential:
Pass$42,185 $78,746 $173,976 $208,565 $80,032 $291,167 $33,180 $619 $908,470 
Special mention— 3,711 — — — 1,221 — — 4,932 
Substandard— — 138 849 50 1,365 525 — 2,927 
PCD— — — — — 1,073 — — 1,073 
Total 1 - 4 family residential$42,185 $82,457 $174,114 $209,414 $80,082 $294,826 $33,705 $619 $917,402 
1-4 family residential gross charge-offs$— $— $31 $— $— $— $— $— $31 
Multi-family residential:
Pass$13,695 $11,744 $104,310 $333,029 $264,501 $20,893 $— $— $748,172 
Substandard— — 568 — — — — — 568 
Total multi-family residential$13,695 $11,744 $104,878 $333,029 $264,501 $20,893 $— $— $748,740 
Multi-family residential gross charge-offs$— $— $— $— $— $198 $— $— $198 
OOCRE:
Pass$42,110 $155,613 $178,036 $98,198 $85,864 $191,990 $4,889 $— $756,700 
Special mention— 5,411 467 3,842 952 16,437 210 — 27,319 
Substandard— — — 3,090 3,358 5,537 — — 11,985 
PCD— — — — — 10,281 — — 10,281 
Total OOCRE$42,110 $161,024 $178,503 $105,130 $90,174 $224,245 $5,099 $— $806,285 
OOCRE gross charge-offs$— $— $— $— $— $120 $— $— $120 
24

NOOCRE:
Pass$135,667 $53,125 $647,252 $511,744 $192,462 $518,668 $40,026 $429 $2,099,373 
Special mention— — 54,602 25,196 54,401 88,561 — — 222,760 
Substandard— — 13,307 3,218 303 30,454 — — 47,282 
PCD— — — — — 433 — — 433 
Total NOOCRE$135,667 $53,125 $715,161 $540,158 $247,166 $638,116 $40,026 $429 $2,369,848 
NOOCRE gross charge-offs$— $— $— $— $— $6,262 $— $— $6,262 
Commercial:
Pass$340,824 $213,063 $234,597 $74,570 $36,627 $67,397 $1,712,466 $1,162 $2,680,706 
Special mention— — 12,523 11,646 71 5,718 20,081 21 50,060 
Substandard908 3,192 15,945 9,312 534 10,089 27,130 — 67,110 
PCD— — — — — 384 — — 384 
Total commercial$341,732 $216,255 $263,065 $95,528 $37,232 $83,588 $1,759,677 $1,183 $2,798,260 
Commercial gross charge-offs$— $— $1,034 $— $— $5,513 $— $— $6,547 
MW:
Pass$37,828 $51,461 $96,250 $— $— $— $364,253 $— $549,792 
Substandard— — — — — — 18,255 — 18,255 
Total MW$37,828 $51,461 $96,250 $— $— $— $382,508 $— $568,047 
MW gross charge-offs$— $— $— $— $— $— $— $— $— 
Consumer:
Pass$1,586 $2,870 $805 $256 $500 $1,506 $1,541 $— $9,064 
Special mention— — — — — 80 — — 80 
Substandard24 — — — 5 62 — — 91 
PCD— — — — — 10 — — 10 
Total consumer$1,610 $2,870 $805 $256 $505 $1,658 $1,541 $— $9,245 
Consumer gross charge-offs$— $— $— $— $— $101 $— $— $101 
Total Pass$668,717 $665,868 $2,228,224 $1,536,512 $712,593 $1,102,641 $2,361,638 $2,210 $9,278,403 
Total Special Mention— 31,539 74,608 45,639 55,424 112,017 20,291 21 339,539 
Total Substandard932 3,192 36,505 16,469 4,281 47,507 45,910 — 154,796 
Total PCD— — — — — 12,181 — — 12,181 
Total$669,649 $700,599 $2,339,337 $1,598,620 $772,298 $1,274,346 $2,427,839 $2,231 $9,784,919 
Current period gross charge-offs$— $— $1,065 $— $— $12,194 $— $— $13,259 
1 Term loans amortized cost basis by origination year excludes $7,778 of deferred loan fees, net.

 
Term Loans Amortized Cost Basis by Origination Year1
 20232022202120202019PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
As of December 31,
Construction and land:
Pass$116,333 $740,244 $538,946 $109,017 $3,089 $3,661 $181,940 $— $1,693,230 
Special mention593 13,782 4,980 3,439 — 8,760 2,677 — 34,231 
Substandard— 6,547 — 246 — — — — 6,793 
Total construction and land$116,926 $760,573 $543,926 $112,702 $3,089 $12,421 $184,617 $— $1,734,254 
Construction and land gross charge-offs$— $— $— $— $— $— $— $— $— 
Farmland:
Pass$2,531 $4,398 $— $17,999 $15 $4,944 $1,227 $— $31,114 
Total farmland$2,531 $4,398 $— $17,999 $15 $4,944 $1,227 $— $31,114 
Farmland gross charge-offs$— $— $— $— $— $— $— $— $— 
25

1 - 4 family residential:
Pass$73,289 $140,824 $193,914 $79,767 $38,589 $270,193 $114,275 $17,255 $928,106 
Special mention3,732 531 — — — 238 — — 4,501 
Substandard— 144 902 — 106 1,701 529 — 3,382 
PCD— — — — — 1,130 — — 1,130 
Total 1 - 4 family residential$77,021 $141,499 $194,816 $79,767 $38,695 $273,262 $114,804 $17,255 $937,119 
1-4 Family gross charge-offs$— $— $— $— $21 $— $— $— $21 
Multi-family residential:
Pass$9,441 $82,040 $257,714 $196,575 $8,054 $14,570 $10,627 $— $579,021 
Special mention— — — — — 11,701 — — 11,701 
Substandard— — — — — 15,095 — — 15,095 
Total multi-family residential$9,441 $82,040 $257,714 $196,575 $8,054 $41,366 $10,627 $— $605,817 
Multifamily gross charge-offs$— $— $— $— $192 $— $— $— $192 
OOCRE:
Pass$129,463 $178,777 $113,207 $90,219 $39,876 $166,270 $4,618 $— $722,430 
Special mention5,481 — 2,479 1,019 1,961 14,775 210 — 25,925 
Substandard— 9,357 2,131 3,644 736 11,695 — — 27,563 
PCD— — — — — 18,170 — — 18,170 
Total OOCRE$134,944 $188,134 $117,817 $94,882 $42,573 $210,910 $4,828 $— $794,088 
OOCRE gross charge-offs$— $— $— $369 $5 $481 $— $— $855 
NOOCRE:
Pass$33,525 $724,110 $500,354 $247,385 $148,046 $381,559 $30,524 $577 $2,066,080 
Special mention— 5,950 25,985 26,175 68,616 55,805 — — 182,531 
Substandard— 3,858 2,774 364 2,620 78,414 — — 88,030 
PCD— — — — — 14,084 — — 14,084 
Total NOOCRE$33,525 $733,918 $529,113 $273,924 $219,282 $529,862 $30,524 $577 $2,350,725 
NOOCRE gross charge-offs$— $— $— $— $— $13,649 $— $— $13,649 
Commercial:
Pass$314,939 $384,713 $86,757 $38,554 $43,535 $45,812 $1,725,663 $1,044 $2,641,017 
Special mention4,584 13,583 12,794 541 — 10,144 9,392 35 51,073 
Substandard640 16,974 3,978 545 3,767 15,843 15,244 74 57,065 
PCD— — — — — 2,908 — — 2,908 
Total commercial$320,163 $415,270 $103,529 $39,640 $47,302 $74,707 $1,750,299 $1,153 $2,752,063 
Commercial gross charge-offs$— $2,158 $— $2,572 $1,083 $4,600 $— $— $10,413 
MW:
Pass$1,905 $— $— $— $— $— $375,891 $— $377,796 
Total MW$1,905 $— $— $— $— $— $375,891 $— $377,796 
MW gross charge-offs$— $— $— $— $— $— $— $— $— 
Consumer:
Pass$4,552 $1,045 $276 $604 $89 $1,678 $1,728 $— $9,972 
Special mention— — — — — 85 — — 85 
Substandard— — 4 — 12 63 — — 79 
PCD— — — — — 13 — — 13 
Total consumer$4,552 $1,045 $280 $604 $101 $1,839 $1,728 $— $10,149 
Consumer gross charge-offs$— $29 $2 $— $— $205 $— $— $236 
26

Total Pass$685,978 $2,256,151 $1,691,168 $780,120 $281,293 $888,687 $2,446,493 $18,876 $9,048,766 
Total Special Mention14,390 33,846 46,238 31,174 70,577 101,508 12,279 35 310,047 
Total Substandard640 36,880 9,789 4,799 7,241 122,811 15,773 74 198,007 
Total PCD— — — — — 36,305 — — 36,305 
Total$701,008 $2,326,877 $1,747,195 $816,093 $359,111 $1,149,311 $2,474,545 $18,985 $9,593,125 
Current year gross charge-offs$— $2,187 $2 $2,941 $1,301 $18,935 $— $— $25,366 
1 Term loans amortized cost basis by origination year excludes $8,785 of deferred loan fees, net.
Servicing Assets
The Company was servicing loans of approximately $592,316 and $587,529 as of June 30, 2024 and 2023, respectively. A summary of the changes in the related servicing assets are as follows:
 Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
Balance at beginning of period$12,622 $15,248 $13,258 $14,880 
Increase from loan sales272 814 907 1,773 
Servicing asset impairment, net recoveries57 438 279 862 
Amortization charged as a reduction to income(753)(1,577)(2,246)(2,592)
Balance at end of period$12,198 $14,923 $12,198 $14,923 
Fair value of servicing assets is estimated by discounting estimated future cash flows from the servicing assets using discount rates that approximate current market rates over the expected lives of the loans being serviced. A valuation allowance is recorded when the fair value is below the carrying amount of the asset. As of June 30, 2024 and 2023 there was a valuation allowance of $1,253 and $1,589, respectively.
The Company may also receive a portion of subsequent interest collections on loans sold that exceed the contractual servicing fees. In that case, the Company records an interest-only strip based on its relative fair market value and the other components of the loans. There was no interest-only strip receivable recorded at June 30, 2024 and December 31, 2023.
The following table reflects principal sold and related gain for SBA and USDA LHI. The gain on sale of these loans is recorded in government guaranteed loan income, net in the Company’s consolidated statements of income.
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
SBA LHI principal sold$1,742 $590 $14,975 $6,930 
Gain on sale of SBA LHI168 431 1,344 579 
USDA LHI principal sold2,850 18,638 2,850 62,640 
Gain on sale of USDA LHI52 2,679 52 9,663 
LHFS
The following table reflects LHFS.
June 30, 2024December 31, 2023
SBA/USDA construction and land$34,454 $41,492 
1 - 4 family residential1,266 788 
SBA OOCRE4,297 16,758 
NOOCRE— 10,500 
SBA commercial17,029 9,534 
Total LHFS$57,046 $79,072 
27

6. Fair Value
The following table summarizes assets measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:
June 30, 2024
 Level 1
Inputs		Level 2
Inputs		Level 3
Inputs		Total
Fair Value
Financial Assets:
AFS debt securities$— $1,172,122 $— $1,172,122 
Equity securities with a readily determinable fair value9,750 — — 9,750 
LHFS(1)
— 55,780 — 55,780 
Interest rate swap designated as hedging instruments— 11,214 — 11,214 
Correspondent interest rate swaps not designated as hedging instruments— 31,922 — 31,922 
Customer interest rate swaps not designated as hedging instruments— 1,030 — 1,030 
Correspondent interest rate caps and collars not designated as hedging instruments— 815 — 815 
Financial Liabilities:
Interest rate swap designated as hedging instruments$— $48,791 $— $48,791 
Correspondent interest rate swaps not designated as hedging instruments— 1,165 — 1,165 
Customer interest rate swaps not designated as hedging instruments— 31,341 — 31,341 
Customer interest rate caps and collars not designated as hedging instruments— 815 — 815 
1Represents LHFS elected to be carried at fair value upon origination or acquisition.
 December 31, 2023
 Level 1
Inputs		Level 2
Inputs		Level 3
Inputs		Total
Fair Value
Financial Assets:
 AFS debt securities$— $1,076,639 $— $1,076,639 
Equity securities with a readily determinable fair value9,897 — — 9,897 
LHFS(1)
— 67,784 — 67,784 
Interest rate swap designated as hedging instruments— 18,814 — 18,814 
Correspondent interest rate swaps not designated as hedging instruments— 28,007 — 28,007 
Customer interest rate swaps not designated as hedging instruments— 2,118 — 2,118 
Correspondent interest rate caps and collars not designated as hedging instruments— 1,344 — 1,344 
Financial Liabilities:
Interest rate swap designated as hedging instruments$— $47,121 $— $47,121 
Correspondent interest rate swaps not designated as hedging instruments— 2,322 — 2,322 
Customer interest rate swaps not designated as hedging instruments— 27,288 — 27,288 
Customer interest rate caps and collars not designated as hedging instruments— 1,344 — 1,344 
(1) Represents LHFS elected to be carried at fair value upon origination or acquisition.
There were no transfers between Level 2 and Level 3 during the six months ended June 30, 2024 and December 31, 2023.
28

The following table summarizes assets measured at fair value on a non-recurring basis as of June 30, 2024 and December 31, 2023, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:
 Fair Value
Measurements Using		 
 Level 1
Inputs		Level 2
Inputs		Level 3
Inputs		Total
Fair Value
As of June 30, 2024                
  Assets:    
Collateral dependent loans with an ACL$— $— $12,044 $12,044 
Servicing assets with a valuation allowance— — 3,670 3,670 
OREO— — 24,256 24,256 
As of December 31, 2023
  Assets:
Collateral dependent loans with an ACL$— $— $14,274 $14,274 
Servicing assets with a valuation allowance— — 6,682 6,682 
At June 30, 2024, collateral dependent loans with an allowance had a recorded investment of $14,461, with $2,417 specific ACL allocated. At December 31, 2023, collateral dependent loans with an allowance had a carrying value of $17,660, with $3,386 of specific ACL allocated.
At June 30, 2024, servicing assets of $4,923 had a valuation allowance totaling $1,253. At December 31, 2023, servicing assets of $8,214 had a valuation allowance totaling $1,532.
OREO primarily consists of six properties recorded with a fair value of approximately $24,256 in total at June 30, 2024. There were no OREO properties recorded as of December 31, 2023.
There were no liabilities measured at fair value on a non-recurring basis as of June 30, 2024 or December 31, 2023.
Fair Value of Financial Instruments
    The Company’s methods of determining fair value of financial instruments in this Note are consistent with its methodologies disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Please refer to Note 17 in the Company’s Annual Report on Form 10-K for information on these methods.
The estimated fair values and carrying values of all financial instruments not measured at fair value on a recurring basis under current authoritative guidance as of June 30, 2024 and December 31, 2023 were as follows:
29

Fair Value
Carrying
Amount		Level 1Level 2Level 3
June 30, 2024
Financial assets:
Cash and cash equivalents$651,837 $— $651,837 $— 
HTM debt securities177,232 — 153,686 — 
LHFS(1)
1,266 — 1,266 — 
LHI(2)
9,651,666 — — 9,500,065 
Accrued interest receivable51,783 — 51,783 — 
BOLI84,233 — 84,233 — 
Servicing asset8,528 — 8,528 — 
Equity securities without a readily determinable fair value38,358 N/AN/AN/A
FHLB and FRB stock53,070 N/AN/AN/A
Financial liabilities:
Noninterest-bearing deposits$2,416,727 $— $2,416,727 $— 
Interest-bearing deposits8,308,117 — 8,196,429 — 
Advances from FHLB— — — — 
Accrued interest payable34,613 — 34,613 — 
Subordinated debentures and subordinated notes230,285 — 230,285 — 
December 31, 2023
Financial assets:
Cash and cash equivalents$629,063 $— $629,063 $— 
HTM debt securities180,403 — 160,021 — 
LHFS(1)
11,288 — 11,288 — 
LHI(2)
9,577,180 — — 9,322,744 
Accrued interest receivable53,313 — 53,313 — 
BOLI84,833 — 84,833 — 
Servicing asset6,576 — 6,576 — 
Equity securities without a readily determinable fair value11,624 N/AN/AN/A
FHLB and FRB stock53,699 N/AN/AN/A
Financial liabilities:
Noninterest-bearing deposits$2,218,036 $— $2,218,036 $— 
Interest-bearing deposits8,120,159 — 8,096,209 — 
Advances from FHLB100,000 — 100,051 — 
Accrued interest payable41,948 — 41,948 — 
Subordinated debentures and subordinated notes229,783 — 229,783 — 
(1) LHFS primarily represent mortgage LHFS that are carried at lower of cost or market.
(2) LHI includes MW and is carried at amortized cost.
7. Derivative Financial Instruments
The Company primarily uses derivatives to manage exposure to market risk, including interest rate risk and credit risk and to assist customers with their risk management objectives. Management will designate certain derivatives as hedging instruments in a qualifying hedge accounting relationship. The Company’s remaining derivatives consist of derivatives held for customer accommodation or other purposes.
The fair value of derivative positions outstanding is included in other assets and accounts payable and other liabilities on the accompanying consolidated balance sheets and in the net change in each of these financial statement line items in the
30

accompanying consolidated statements of cash flows. For derivatives not designated as hedging instruments, swap fee income and gains and losses due to changes in fair value are included in other noninterest income and the operating section of the consolidated statement of cash flows. For derivatives designated as hedging instruments, the entire change in the fair value related to the derivative instrument is recognized as a component of other comprehensive income and subsequently reclassified into interest income or interest expense when the forecasted transaction affects income. The notional amounts and estimated fair values as of June 30, 2024 and December 31, 2023 are as shown in the table below.

 June 30, 2024December 31, 2023
Estimated Fair ValueEstimated Fair Value
 Notional
Amount		Asset DerivativeLiability DerivativeNotional
Amount		Asset DerivativeLiability Derivative
Derivatives designated as hedging instruments (cash flow hedges):
Interest rate swap on money market deposit account payments$250,000 $8,573 $— $250,000 $12,208 $— 
Interest rate swaps on fixed rate advances/brokered CDs200,000 — 647 200,000 — 4,296 
Interest rate swaps on customer loan interest payments375,000 — 44,511 375,000 — 40,055 
Interest rate collars on customer loan interest payments450,000 909 3,633 450,000 2,304 2,770 
Interest rate floor on customer loan interest payments200,000 1,732 — 200,000 4,302 — 
Total derivatives designated as hedging instruments$1,475,000 $11,214 $48,791 $1,475,000 $18,814 $47,121 
Derivatives not designated as hedging instruments:      
Financial institution counterparty:      
Interest rate swaps$880,996 $31,922 $1,165 $893,702 $28,007 $2,322 
Interest rate caps and corridors320,088 815 — 285,370 1,344 — 
Commercial customer counterparty:
Interest rate swaps880,996 1,030 31,341 893,702 2,118 27,288 
Interest rate caps and corridors320,088 — 815 285,370 — 1,344 
Total derivatives not designated as hedging instruments$2,402,168 $33,767 $33,321 $2,358,144 $31,469 $30,954 
Offsetting derivative assets/liabilities— (32,810)(32,810)— (29,463)(29,463)
Total derivatives$3,877,168 $12,171 $49,302 $3,833,144 $20,820 $48,612 

Pre-tax (loss) gain included in the consolidated statements of income and related to derivative instruments for the three and six months ended June 30, 2024 and 2023 were as follows.
31

 For the Three Months Ended
June 30, 2024		For the Three Months Ended
June 30, 2023
 (Loss) gain recognized in other comprehensive income on derivativeGain (loss) reclassified from accumulated other comprehensive income into incomeLocation of (loss) gain reclassified from accumulated other comprehensive income into income(Loss) gain recognized in other comprehensive income on derivativeGain (loss) reclassified from accumulated other comprehensive income into incomeLocation of (loss) gain reclassified from accumulated other comprehensive income into income
Derivatives designated as hedging instruments (cash flow hedges):
Interest rate swap on borrowing advances$(1,094)$1,094 Interest Expense$(1,094)$1,094 Interest Expense
Interest rate swap on money market deposit account payments(1,835)3,517 Interest Expense1,370 2,866 Interest Expense
Interest rate swaps, collars and floors on customer loan interest payments701 (5,499)Interest Income(15,309)(4,706)Interest Income
Total$(2,228)$(888)$(15,033)$(746)
Net gain recognized in other noninterest incomeNet gain recognized in other noninterest income
Derivatives not designated as hedging instruments:
Interest rate swaps, caps and collars$326 $983 

For the Six Months Ended June 30, 2024For the Six Months Ended June 30, 2023
(Loss) gain recognized in other comprehensive income on derivativeGain (loss) reclassified from accumulated other comprehensive income into incomeLocation of (loss) gain reclassified from accumulated other comprehensive income into incomeGain (loss) recognized in other comprehensive income on derivative(Loss) gain reclassified from accumulated other comprehensive income into incomeLocation of (loss) gain reclassified from accumulated other comprehensive income into income
Derivatives designated as hedging instruments (cash flow hedges):
Interest rate swap on borrowing advances$(2,187)$2,187 Interest Expense$(2,176)$2,176 Interest Expense
Interest rate swap on money market deposit account payments14 6,956 Interest Expense(2,607)5,434 Interest Expense
Interest rate swaps, collars and floors on customer loan interest payments(8,550)(10,867)Interest Income(3,171)(8,513)Interest Income
Total$(10,723)$(1,724)$(7,954)$(903)
Net gain recognized in other noninterest incomeNet gain recognized in other noninterest income
Derivatives not designated as hedging instruments:
Interest rate swaps, caps and collars$775 $1,196 

32

Cash Flow Hedges
We enter into cash flow hedge relationships to mitigate exposure to the variability of future cash flows or other forecasted transactions. The Company uses interest rate swaps, floors, caps and collars to manage overall cash flow changes related to interest rate risk exposure on benchmark interest rate loans. To qualify for hedge accounting, a formal assessment is prepared to determine whether the hedging relationship, both at inception and on an ongoing basis, is expected to be highly effective in achieving offsetting cash flows attributable to the hedged risk during the term of the cash flow hedge. At inception a statistical regression analysis is prepared to determine hedge effectiveness. At each reporting period thereafter, a statistical regression or qualitative analysis is performed. If it is determined that hedge effectiveness has not been or will not continue to be highly effective, then hedge accounting ceases and any gain or loss in AOCI is recognized in earnings immediately. The cash flow hedges are recorded at fair value in other assets and other liabilities on the consolidated balance sheets with changes in fair value recorded in AOCI, net of tax. Amounts recorded to AOCI are reclassified into earnings in the same period in which the hedged asset or liability affects earnings and are presented in the same income statement line item as the earnings effect of the hedged asset or liability.    
Interest Rate Swap, Floor, Cap and Collar Agreements Not Designated as Hedging Derivatives
    In order to accommodate the borrowing needs of certain commercial customers, the Company has entered into interest rate swap or cap agreements with those customers. These interest rate derivative contracts effectively allow the Company’s customers to convert a variable rate loan into a fixed rate loan. In order to offset the exposure and manage interest rate risk, at the time an agreement was entered into with a customer, the Company entered into an interest rate swap or cap with a correspondent bank counterparty with offsetting terms. These derivative instruments are not designated as accounting hedges and changes in the net fair value are recognized in noninterest income or expense. Because the Company acts as an intermediary for its customers, changes in the fair value of the underlying derivative contracts substantially offset each other and do not have a material impact on the Company’s results of operations. The fair value amounts are included in other assets and other liabilities.
33

The following is a summary of the interest rate swaps, caps and collars outstanding as of June 30, 2024 and December 31, 2023.
 June 30, 2024
 Notional AmountFixed RateFloating RateMaturityFair Value
Non-hedging derivative instruments:     
Customer interest rate derivative:     
Interest rate swaps - receive fixed/pay floating
$880,996 
2.4% - 7.4%
LIBOR 1 month + 3.0%
SOFR CME 1 month + 0.0% - 3.8%
SOFR-NYFD 30 day avg + 2.5% - 3.0%
Wtd. Avg.
3.7 years
$(30,311)
Interest rate caps and corridors$320,088 
3.5% - 7.5%
SOFR CME 1 month + 0.0% - 3.0%
SOFR + 0.0%
Wtd. Avg.
0.2 years
$(815)
Correspondent interest rate derivative:     
Interest rate swaps - pay fixed/receive floating
$880,996 
2.4% - 7.4%
LIBOR 1 month + 3.0%
SOFR CME 1 month + 0.0% - 3.8%
SOFR-NYFD 30 day avg + 2.5% - 3.0%
Wtd. Avg.
3.7 years
$30,757 
Interest rate caps and corridors$320,088 
3.5% - 7.5%
SOFR CME 1 month + 0.0% - 3.0%
SOFR + 0.0%
Wtd. Avg.
0.2 years
$815 
December 31, 2023
Notional AmountFixed RateFloating RateMaturityFair Value
Non-hedging derivative instruments:
Customer interest rate derivative:
Interest rate swaps - receive fixed/pay floating
$893,702 
2.4% - 7.4%
LIBOR 1 month + 3.0%
SOFR CME 1 month + 0.0% - 3.8%
SOFR-NYFD 30 day avg + 2.5% - 3.0%
Wtd. Avg.
4.1 years
$(25,170)
Interest rate caps and corridors$285,370 
3.5% - 7.5%
SOFR CME 1 month $0.0% - 2.5%
SOFR + $0.0%
Wtd. Avg.
0.8 years
$(1,344)
Correspondent interest rate derivative:
Interest rate swaps - pay fixed/receive floating
$893,702 
2.4% - 7.4%
LIBOR 1 month + 3.0%
SOFR CME 1 month + 0.0% - 3.8%
SOFR-NYFD 30 day avg + 2.5% - 3.0%
Wtd. Avg.
4.1 years
$25,685 
Interest rate caps and corridors$285,370 
3.5% - 7.5%
SOFR CME 1 month + 0.0% - 2.5%
SOFR + 0.0%
Wtd. Avg.
0.8 years
$1,344 

34

8. OBS Loan Commitments
The Company is party to financial instruments with OBS risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, MW commitments and standby and commercial letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets.
The Company’s exposure to credit loss in the event of nonperformance by the other party to a financial instrument for commitments to extend credit, MW commitments and standby and commercial letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments.
The following table sets forth the approximate amounts of these financial instruments as of June 30, 2024 and December 31, 2023:
 June 30,December 31,
 20242023
Commitments to extend credit$2,785,103 $3,083,501 
MW commitments684,952 803,704 
Standby and commercial letters of credit115,238 111,590 
Total$3,585,293 $3,998,795 
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Management evaluates each customer’s creditworthiness on a case-by-case basis and substantially all of the Company’s commitments to extend credit are contingent upon customers maintaining specific credit standards at the time of future loan funding. The amount of collateral obtained, if deemed necessary upon extension of credit, is based on management’s credit evaluation of the borrower.
MW commitments are unconditionally cancellable and represent the unused capacity on MW facilities the Company has approved. The Company reserves the right to refuse to buy any mortgage loans offered for sale by a customer, for any reason, at the Company’s sole and absolute discretion.
Standby and commercial letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Standby and commercial letters of credit generally have fixed expiration dates or other termination clauses and may require payment of a fee. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company’s policy for obtaining collateral and the nature of such collateral is substantially the same as that involved in making commitments to extend credit.
The table below presents the activity in the allowance for unfunded commitment credit losses related to those financial instruments discussed above. This ACL on unfunded commitments is recorded in accounts payable and other liabilities on the consolidated balance sheets:
 Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
Beginning balance for ACL on unfunded commitments$6,504 $11,583 $8,045 $10,086 
(Benefit) provision for credit losses on unfunded commitments— (1,129)(1,541)368 
Ending balance of ACL on unfunded commitments$6,504 $10,454 $6,504 $10,454 

35

9. Stock-Based Awards
2010 Stock Option and Equity Incentive Plan (“2010 Incentive Plan”)
    The Company recognized no stock compensation expense related to the 2010 Incentive Plan for the three and six months ended June 30, 2024 and 2023.
A summary of option activity under the 2010 Incentive Plan for the six months ended June 30, 2023, and changes during the periods then ended, is presented below. There was no activity under the 2010 Incentive Plan for the six months ended June 30, 2024.
2010 Incentive Plan
 Non-Performance Based Stock Options
 Shares
Underlying
Options		Weighted
Exercise
Price		Weighted
Average
Contractual
Term		Aggregate Intrinsic Value
Outstanding at January 1, 20231,000 $10.43 1.07 years
Exercised(1,000)10.43 
Outstanding and exercisable at June 30, 2023— $— — $— 
A summary of the fair value of the Company’s stock options exercised under the 2010 Incentive Plan for the six months ended June 30, 2024 and 2023 is presented below:
Fair Value of Options Exercised as of June 30,
 20242023
Nonperformance-based stock options exercised$— $16 
2022 Equity Plan, Veritex (Green) 2014 Plan and Green 2010 Plan
Grants of RSU
    During the three and six months ending June 30, 2024, the Company granted non-performance-based RSUs and PSUs under the 2022 Amended and Restated Omnibus Incentive Plan (the “2022 Equity Plan”) and the Veritex (Green) 2014 Omnibus Equity Incentive Plan (the “Veritex (Green) 2014 Plan”). The majority of the RSUs granted to employees during the six months ending June 30, 2024 have an annual graded vesting over a three year period from the grant date.
    The PSUs granted in February 2024 are subject to a service, performance and market conditions. The performance and market condition determine the number of awards to vest. The service period is from February 1, 2024 to January 31, 2027, the performance conditions performance period is from January 1, 2024 to December 31, 2026 and the market condition performance period is from February 1, 2024 to January 31, 2027. A Monte Carlo simulation was used to estimate the fair value of PSUs on the grant date.
Stock Compensation Expense
Stock compensation expense for options, RSUs and PSUs granted under the 2022 Equity Plan and the Veritex (Green) 2014 Plan were as follows:
Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
2022 Equity Plan$2,757 $2,680 $5,216 $5,145 
Veritex (Green) 2014 Plan410 487 840 909 

36


2022 Equity Plan
A summary of the status of the Company’s stock options under the 2022 Equity Plan as of June 30, 2024 and 2023, and changes during the six months then ended, is as follows:
 2022 Equity Plan
 Non-performance Based Stock Options
 Shares
Underlying
Options		Weighted
Exercise
Price		Weighted
Average
Contractual
Term		Aggregate Intrinsic Value
Outstanding at January 1, 2023657,494 $24.47 
Forfeited(1,666)17.38 
Cancelled(3,804)29.13 
Exercised(17,285)18.29 
Outstanding at June 30, 2023634,739 $24.63 5.09 years
Options exercisable at June 30, 2023608,739 $24.79 5.03 years
Outstanding at January 1, 2024602,573 $24.40 
Cancelled(1,263)23.86 
Outstanding at June 30, 2024601,310 $24.40 4.35 years$250,711 
Options exercisable at June 30, 2024601,310 $24.40 4.35 years$250,711 

There was no unrecognized compensation expense related to options awarded under the 2022 Equity Plan as of June 30, 2024 and December 31, 2023. As of June 30, 2023, there was $75 of total unrecognized compensation expense related to options awarded under the 2022 Equity Plan.

A summary of the status of the Company’s RSUs under the 2022 Equity Plan as of June 30, 2024 and 2023, and changes during the six months then ended, is as follows:
 2022 Equity Plan
Non-performance-Based
 RSUs
 UnitsWeighted
Average
Grant Date
Fair Value
Outstanding at January 1, 2023955,104 $28.38 
Granted273,086 27.84 
Vested into shares(184,337)29.87 
Forfeited(22,887)32.30 
Outstanding at June 30, 20231,020,966 $27.88 
Outstanding at January 1, 2024982,513 $27.52 
Granted190,018 21.94 
Vested into shares(187,546)28.54 
Forfeited(7,678)27.38 
Outstanding at June 30, 2024977,307 $26.18 

37

A summary of the status of the Company’s PSUs under the 2022 Equity Plan as of June 30, 2024 and 2023, and changes during the six months then ended, is as follows:

 2022 Equity Plan
Performance-Based
 PSUs
 UnitsWeighted
Average
Grant Date
Fair Value
Outstanding at January 1, 2023126,707 $31.19 
Granted53,310 27.55 
Vested into shares(41,781)26.42 
Forfeited(8,468)30.90 
Outstanding at June 30, 2023129,768 $30.28 
Outstanding at January 1, 2024129,768 $30.28 
Granted113,144 18.84 
Vested into shares(72,206)25.79 
Outstanding at June 30, 2024170,706 $25.01 
As of June 30, 2024, December 31, 2023 and June 30, 2023, there was $15,742, $14,692 and $19,074 of total unrecognized compensation related to RSUs and PSUs awarded under the 2022 Equity Plan, respectively. The unrecognized compensation expense at June 30, 2024 is expected to be recognized over the remaining weighted average requisite service period of 2.43 years.
    A summary of the fair value of the Company’s stock options exercised, RSUs and PSUs vested under the 2022 Equity Plan during the six months ended June 30, 2024 and 2023 is presented below:
Fair Value of Options Exercised or RSUs Vested in the Six Months Ended June 30,
 20242023
Non-performance-based stock options exercised$— $66 
RSUs vested3,142 3,125 
PSUs vested1,443 1,070 
38

Veritex (Green) 2014 Plan
A summary of the status of the Company’s stock options under the Veritex (Green) 2014 Plan as of June 30, 2024 and 2023, and changes during the six months then ended, is as follows:
 Veritex (Green) 2014 Plan
 Non-performance Based Stock Options
 Shares
Underlying
Options		Weighted
Exercise
Price		Weighted
Average
Contractual
Term		Aggregate Intrinsic Value
Outstanding at January 1, 2023155,212 $19.83 
Cancelled(505)21.38 
Exercised(13,266)22.74 
Outstanding at June 30, 2023141,441 $21.86 4.28 years
Options exercisable at June 30, 2023141,441 $21.86 4.28 years
Outstanding at January 1, 2024124,499 $19.78 
Outstanding at June 30, 2024124,499 $19.78 3.21 years$424,335 
Options exercisable at June 30, 2024124,499 $19.78 3.21 years$424,335 
Weighted average fair value of options granted during the period$— 
As of June 30, 2024, December 31, 2023 and June 30, 2023 there was no unrecognized compensation expense related to options awarded under the Veritex (Green) 2014 Plan.

39

A summary of the status of the Company’s RSUs under the Veritex (Green) 2014 Plan as of June 30, 2024 and 2023 and changes during the six months then ended, is as follows:

Veritex (Green) 2014 Plan
Non-performance-Based
RSUs
UnitsWeighted
Average
Grant Date
Fair Value
Outstanding at January 1, 202386,233 $21.09 
Vested into shares(19,282)29.66 
Forfeited(2,232)29.13 
Outstanding at June 30, 202364,719 $18.26 
Outstanding at January 1, 202464,719 $18.26 
Vested into shares(5,154)32.20 
Outstanding at June 30, 202459,565 $17.51 

A summary of the status of the Company’s PSUs under the Veritex (Green) 2014 Plan as of June 30, 2024 and 2023 and changes during the six months then ended, is as follows:
 Veritex (Green) 2014 Plan
Performance-Based
 PSUs
 UnitsWeighted
Average
Grant Date
Fair Value
Outstanding at January 1, 202319,173 $30.74 
Vested into shares(8,531)25.94 
Outstanding at June 30, 202310,642 $31.93 
Outstanding at January 1, 202410,642 $31.93 
Granted1,246 18.84 
Vested into shares(7,477)25.94 
Outstanding at June 30, 20244,411 $40.38 
As of June 30, 2024, December 31, 2023 and June 30, 2023, there was $973, $1,781, and $2,730, respectively, of total unrecognized compensation related to outstanding RSUs and PSUs awarded under the Veritex (Green) 2014 Plan to be recognized over a remaining weighted average requisite service period of 0.90 years.
40

    A summary of the fair value of the Company’s stock options exercised, RSUs and PSUs vested under the Veritex (Green) 2014 Plan during the six months ended June 30, 2024 and 2023 presented below:
Fair Value of Options Exercised or RSUs Vested in the Six Months Ended June 30,
 20242023
Non-performance-based stock options exercised$— $18 
RSUs vested639 2,091 
PSUs vested149 227 
Green 2010 Plan
In addition to the Veritex (Green) 2014 Plan discussed earlier in this Note, the Company assumed the Green Bancorp Inc. 2010 Stock Option Plan (“Green 2010 Plan”).
A summary of the status of the Company’s stock options under the Green 2010 Plan as of June 30, 2024 and 2023, and changes during the six months then ended, is as follows:
 Green 2010 Plan
 Non-performance Based Stock Options
 Shares
Underlying
Options		Weighted
Exercise
Price		Weighted
Average
Contractual
Term		Aggregate Intrinsic Value
Outstanding at January 1, 202343,162 $13.11 
Exercised(29,630)13.22 
Outstanding at June 30, 202313,532 $12.86 3.69 years
Outstanding at January 1, 202410,784 $12.65 
Outstanding at June 30, 202410,784 $12.65 3.57 years$91 
A summary of the fair value of the Company’s stock options exercised under the Green 2010 Plan during the six months ended June 30, 2024 and 2023 presented below:
Fair Value of Options Exercised as of June 30,
 20242023
Nonperformance-based stock options exercised$— $365 
10. Income Taxes
    Income tax expense for the three and six months ended June 30, 2024 and 2023 was as follows:
Three Months Ended
June 30,		Six Months Ended June 30,
 2024202320242023
Income tax expense for the period$8,221 $9,725 $15,458 $20,737 
Effective tax rate23.2 %22.4 %23.1 %22.3 %
For the three months ended June 30, 2024, the Company had an effective tax rate of 23.2%. The Company had a one-time tax expense of $527 during the three months ended June 30, 2024. The Company had a net discrete tax expense of $26 thousand associated with the recognition of an excess tax expense realized on share-based payment awards during the three months ended June 30, 2024. Excluding this discrete tax item, the Company had an effective tax rate of 23.1% for the three months ended June 30, 2024.
41

For the three months ended June 30, 2023, the Company had an effective tax rate of 22.4%. The Company had a net discrete tax expense of $41 thousand associated with the recognition of an excess tax expense realized on share-based payment awards during the three months ended June 30, 2023. Excluding this discrete tax item, the Company had an effective tax rate of 22.3% for the three months ended June 30, 2023.
For the six months ended June 30, 2024, the Company had an effective tax rate of 23.1%. The Company had a one-time tax expense of $527 during the six months ended June 30, 2024. The Company had a net discrete tax expense of $410 thousand associated with the recognition of an excess tax expense realized on share-based payment awards during the six months ended June 30, 2024. Excluding this discrete tax item, the Company had an effective tax rate of 22.5% for the six months ended June 30, 2024.
For the six months ended June 30, 2023, the Company had an effective tax rate of 22.3%. The Company had a net discrete tax expense of $153 thousand associated with the recognition of an excess tax expense realized on share-based payment awards during the six months ended June 30, 2023. Excluding this discrete tax item, the Company had an effective tax rate of 22.2% for the six months ended June 30, 2023.
At December 31, 2023, we determined it was more likely than not that a portion of our deferred tax assets would not be realized in their entirety. Thus, the Company recorded a $4,249 valuation allowance in continuing operations relating to the impairment on our investment in Thrive. The deferred tax asset is not realizable due to the capital loss that will not be recognized. The position was upheld as of June 30, 2024. There was no valuation allowance in the comparable period in 2023.
11. Legal Contingencies
Litigation
The Company may from time to time be involved in legal actions arising from normal business activities. In the opinion of management, there are no claims for which it is reasonably possible that an adverse outcome would have a material effect on the Company's financial position, liquidity or results of operations. The Company is not aware of any material unasserted claims.
12. Capital Requirements and Restrictions on Retained Earnings
Under applicable U.S. banking laws, there are legal restrictions limiting the amount of dividends the Company can declare. Approval of the regulatory authorities is required if, among other things, the effect of the dividends declared would cause regulatory capital of the Company to fall below specified minimum levels.
The Company on a consolidated basis and the Bank are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements triggers certain mandatory actions and may lead to additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for PCA, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain OBS items as calculated under regulatory accounting practices. The Bank’s capital amounts and PCA classification are also subject to qualitative judgments by the regulators about components of capital, risk weightings of assets, and other factors. In addition, an institution may be downgraded to, or deemed to be in, a capital category that is lower than indicated by its capital ratios, if it is determined to be in an unsafe or unsound condition or if it receives an unsatisfactory examination rating with respect to certain matters.

As a result of our no longer using the CBLR framework, we are subject to various quantitative measures established by regulation to ensure capital adequacy. These generally applicable capital requirements require a banking organization that does not operate under the CBLR framework to maintain minimum amounts and ratios (set forth in the table below) of total capital, Tier 1 capital, and CET1 capital to RWA, and of Tier 1 capital to average assets. The capital rules implementing Basel III also include a “capital conservation buffer” of 2.5% on top of each of the minimum RBC ratios, and a banking organization with any RBC ratio that meets or exceeds the minimum requirement but does not meet the capital conservation buffer will face constraints on dividends, equity repurchases and discretionary bonus payments based on the amount of the shortfall. Additionally, to be categorized as “well capitalized,” a bank that does not operate under the CBLR framework is required to maintain minimum total risk-based CET1, Tier 1, and total capital ratios and Tier 1 leverage ratios as set forth in the table below.

42

As of June 30, 2024 and December 31, 2023, the Company’s and the Bank’s capital ratios exceeded those levels necessary to be categorized as “well capitalized”. There are no conditions or events since June 30, 2024 that management believes have changed the Company’s category.

In the first quarter of 2020, U.S. federal regulatory authorities issued an interim final rule that provides banking organizations that adopt CECL during the 2020 calendar year with the option to delay for two years the estimated impact of CECL on regulatory capital relative to regulatory capital determined under the prior incurred loss methodology, followed by a three-year transition period to phase out the aggregate amount of the capital benefit provided during the initial two-year delay (i.e., a five-year transition in total). In connection with our adoption of CECL on January 1, 2020, the Company elected to utilize the five-year CECL transition. As a result, the effects of CECL on the Company’s and the Bank’s regulatory capital was delayed through the year 2021, with the effects phased-in over a three-year period from January 1, 2022 through December 31, 2024.

A comparison of the Company’s and Bank’s actual capital amounts and ratios to required capital amounts and ratios is presented in the following table:
 Actual For Capital 
Adequacy Purposes		 To Be Well
Capitalized Under
PCA Provisions
 AmountRatio Amount Ratio Amount Ratio
As of June 30, 2024
Total capital (to RWA)
Company$1,540,440 13.45 %$916,247 8.0 %$1,145,309 10.0 %
Bank1,462,157 12.81 913,135 8.0 $1,141,418 10.0 
Tier 1 capital (to RWA)
Company1,230,782 10.75 686,948 6.0 686,948 6.0 
Bank1,351,766 11.85 684,438 6.0 912,585 8.0 
CET1 (to RWA)
Company1,200,782 10.49 515,111 4.5 n/an/a
Bank1,351,766 11.85 513,329 4.5 741,475 6.5 
Tier 1 capital (to average assets)
Company1,230,782 10.06 489,377 4.0 n/an/a
Bank1,351,766 11.09 487,562 4.0 609,453 5.0 
As of December 31, 2023
Total capital (to RWA)
Company$1,500,703 13.18 %$910,897 8.0 %n/an/a
Bank1,467,960 12.90 910,363 8.0 $1,137,953 10.0 %
Tier 1 capital (to RWA)
Company1,202,252 10.56 683,098 6.0 n/an/a
Bank1,368,384 12.03 682,486 6.0 909,981 8.0 
CET1 (to RWA)
Company1,172,362 10.29 512,695 4.5 n/an/a
Bank1,368,384 12.03 511,864 4.5 739,360 6.5 
Tier 1 capital (to average assets)
Company1,202,252 10.03 479,462 4.0 n/an/a
Bank1,368,384 11.43 478,875 4.0 598,593 5.0 
    





43

Dividend Restrictions

Dividends paid by the Bank are subject to certain restrictions imposed by regulatory agencies. Capital requirements further limit the amount of dividends that may be paid by the Bank. Dividends of $50,000 and $77,500 were paid by the Bank to the Holdco during the three and six months ending June 30, 2024, respectively. Dividends of $20,000 were paid by the Bank to the Holdco during the three and six months ended June 30, 2023.

Dividends of $10,900, or $0.20 per outstanding share of the Company’s common stock, and $21,799, or $0.40 per outstanding share of the Company’s common stock, were paid by the Company during the three and six months ended June 30, 2024, respectively. Dividends of $10,850, or $0.20 per outstanding share, and $21,687, or $0.40 per outstanding share of the Company’s common stock were paid by the Company during the three and six months ended June 30, 2023, respectively.

The Bank is subject to limitations on dividend payouts if, among other things, it does not have a capital conservation buffer of 2.5% or more. The Bank had a capital conservation buffer of 4.81% as of June 30, 2024.

44

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and notes thereto appearing in Item 1 of Part I of this Quarterly Report on Form 10-Q (this “Report”) as well as with our consolidated financial statements and notes thereto appearing in our Annual Report on Form 10-K for the year ended December 31, 2023. Except where the content otherwise requires or when otherwise indicated, the terms “Veritex,” the “Company,” “we,” “us,” “our,” and “our business” refer to the combined entities of Veritex Holdings, Inc. and its subsidiaries, including Veritex Community Bank.

This discussion and analysis contains forward-looking statements that are subject to certain risks and uncertainties and are based on certain assumptions that we believe are reasonable but may prove to be inaccurate. Certain risks, uncertainties and other factors, including those set forth under “Special Cautionary Notice Regarding Forward-Looking Statements,” may cause actual results to differ materially from the projected results discussed in the forward-looking statements appearing in this discussion and analysis. We assume no obligation to update any of these forward-looking statements. For additional information concerning forward-looking statements, please read “Special Cautionary Notice Regarding Forward-Looking Statements” below.

Overview

    We are a Texas state banking organization with corporate offices in Dallas, Texas. Through our wholly owned subsidiary, Veritex Community Bank, a Texas state-chartered bank, we provide relationship-driven commercial banking products and services tailored to meet the needs of small to medium-sized businesses and professionals. Beginning at our operational inception in 2010, we initially targeted customers and focused our acquisitions primarily in the Dallas metropolitan area, which we consider to be Dallas and the adjacent communities in North Dallas. Our current primary markets includes the broader Dallas-Fort Worth metroplex and the Houston metropolitan area. As we continue to grow, we may expand to other metropolitan banking markets in Texas.

    Our business is conducted through one reportable segment, community banking, which generates the majority of our revenues from interest income on loans, customer service and loan fees, gains on sale of government guaranteed loans and mortgage loans and interest income from securities. We incur interest expense on deposits and other borrowed funds and noninterest expense, such as salaries, employee benefits and occupancy expenses. We analyze our ability to maximize income generated from interest earning assets and expense of our liabilities through net interest margin. Net interest margin is a ratio calculated as net interest income divided by average interest-earning assets. Net interest income is the difference between interest income on interest-earning assets, such as loans and securities, and interest expense on interest-bearing liabilities, such as deposits and borrowings, which are used to fund those assets.

    Changes in the market interest rates and interest rates we earn on interest-earning assets or pay on interest-bearing liabilities, as well as the volume and types of interest-earning assets, and interest-bearing and noninterest-bearing liabilities, are usually the largest drivers of periodic changes in net interest spread, net interest margin and net interest income. Fluctuations in market interest rates are driven by many factors, including governmental monetary policies, inflation, deflation, macroeconomic developments, changes in unemployment, the money supply, political and international conditions and conditions in domestic and foreign financial markets. Periodic changes in the volume and types of loans in our loan portfolio are affected by, among other factors, economic and competitive conditions in Texas and, specifically, in the Dallas-Fort Worth metroplex and Houston metropolitan area, as well as developments affecting the real estate, technology, financial services, insurance, transportation, manufacturing and energy sectors within our target markets and throughout the state of Texas.



In accordance with Item 303(c)(2)(ii) of Regulation S-K, the Company is providing a comparison of the quarter ended June 30, 2024 against the preceding sequential quarter. The Company has elected to provide this comparison because it believes providing a sequential discussion of its results of operations provides more relevant information for investors and stakeholders to understand and analyze the business. Pursuant to the requirements of Item 303(c)(2)(ii) of Regulation S-K for when there is a change in the form of presentation from period to period that forms the basis of comparison from previous periods, in this transitional Report the Company is also presenting a comparison of the quarter ended June 30, 2024 against the same period of the prior year. The Company continues to present the required comparison of current year-to-date results with the same period of the prior year.

45

Financial information for the three months ended March 31, 2024, may be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part I, Item 2 of the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2024.

Results of Operations for the Three Months Ended June 30, 2024 and March 31, 2024

General

    Net income for the three months ended June 30, 2024 was $27.2 million, an increase of $3.0 million, or 12.4%, from net income of $24.2 million for the three months ended March 31, 2024.
    Basic EPS for the three months ended June 30, 2024 was $0.50, an increase of $0.06 from $0.44 for the three months ended June 30, 2023. Diluted EPS for the three months ended June 30, 2024 was $0.50, an increase of $0.06 from $0.44 for the three months ended March 31, 2024.
Net Interest Income

For the three months ended June 30, 2024, net interest income totaled $96.2 million and net interest margin and net interest spread were 3.29% and 2.04%, respectively. For the three months ended March 31, 2024, net interest income totaled $92.8 million and net interest margin and net interest spread were 3.24% and 1.97%, respectively. The increase in net interest income was primarily due to an increase in interest income of $5.0 million in interest and fees on loans, a $1.7 million increase in interest income on debt securities and a $1.2 million decrease in interest expense on transaction and savings deposits. The increase was partially offset by a $4.3 million increase in interest expense on certificates and other time deposits during the three months ended June 30, 2024, compared to the three months ended March 31, 2024. Net interest margin increased 5 bps to 3.29% from 3.24% for the three months ended June 30, 2024, compared to the three months ended March 31, 2024, primarily due to an increase in yields on loans and debt securities during the three months ended June 30, 2024. The average cost of interest-bearing deposits increased to 4.46% for the three months ended June 30, 2024 from 4.43% for the three months ended March 31, 2024.

For the three months ended June 30, 2024, interest expense totaled $95.0 million and the average rate paid on interest-bearing liabilities was 4.50%. For the three months ended March 31, 2024, interest expense totaled $91.8 million and the average rate paid on interest-bearing liabilities was 4.47%. The quarter-over-quarter increase was primarily due to increases in the average rates paid on certificates and other time deposits.

The following table presents, for the periods indicated, an analysis of net interest income by each major category of interest-earning assets and interest-bearing liabilities, the average amounts outstanding and the interest earned or paid on such amounts. The table also sets forth the average rates earned on interest-earning assets, the average rates paid on interest-bearing liabilities, and the net interest margin on average total interest-earning assets for the same periods. Interest earned on loans that are classified as nonaccrual is not recognized in income; however, the balances are reflected in average outstanding balances for the period. For the three months ended June 30, 2024 and three months ended March 31, 2024, interest income not recognized on nonaccrual loans was $763 thousand and $781 thousand, respectively. Any nonaccrual loans have been included in the table as loans carrying a zero yield.

46

For the Three Months Ended
June 30, 2024March 31, 2024
InterestInterest
AverageEarned/AverageAverageEarned/Average
OutstandingInterestYield/OutstandingInterestYield/
BalancePaidRateBalancePaidRate
(Dollars in thousands)
Assets                                                       
Interest-earning assets:
Loans(1)
$9,344,482 $160,323 6.90 %$9,283,815 $157,585 6.83 %
LHI, MW420,946 6,656 6.36 279,557 4,357 6.27 
Debt Securities1,352,293 15,408 4.58  1,294,994 13,695 4.25 
Interest-earning deposits in other banks560,586 7,722 5.54  584,593 8,050 5.54 
Equity securities and other investments78,964 1,138 5.80  76,269 900 4.75 
Total interest-earning assets11,757,271 191,247 6.54  11,519,228 184,587 6.44 
ACL(115,978)   (112,229)
Noninterest-earning assets937,413   929,043
Total assets$12,578,706   $12,336,042 
Liabilities and Stockholders’ Equity      
Interest-bearing liabilities:      
Interest-bearing demand and savings deposits$4,570,329 $45,619 4.01 %$4,639,445 $46,784 4.06 %
Certificates and other time deposits3,591,035 44,811 5.02 3,283,735 40,492 4.96 
Advances from FHLB106,648 1,468 5.54 100,989 1,391 5.54 
Subordinated debentures and subordinated debt230,141 3,113 5.44 229,881 3,114 5.45 
Total interest-bearing liabilities8,498,153 95,011 4.50 8,254,050 91,781 4.47 
Noninterest-bearing liabilities:      
Noninterest-bearing deposits2,346,908 2,355,315 
Other liabilities192,036 192,809 
Total liabilities11,037,097 10,802,174 
Stockholders’ equity1,541,609 1,533,868 
Total liabilities and stockholders’ equity$12,578,706 $12,336,042 
Net interest rate spread(2)
2.04 %1.97 %
Net interest income$96,236 $92,806 
Net interest margin(3)
3.29 %3.24 %
(1) Includes average outstanding balances of LHFS of $58.5 million and $53.9 million for the three months ended June 30, 2024 and three months ended March 31, 2024, respectively, and average balances of LHI, excluding MW loans.
(2) Net interest rate spread is equal to 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.

47

The following table presents the changes in interest income and interest expense for the periods indicated for each major component of interest-earning assets and interest-bearing liabilities and distinguishes between the changes attributable to changes in volume and interest rates. For purposes of this table, changes attributable to both rate and volume that cannot be segregated have been allocated to rate.
 For the Three Months Ended
 June 30, 2024 vs. March 31, 2024
 Increase (Decrease) 
 Due to Change in 
 VolumeRateTotal
 (In thousands)
Interest-earning assets:
Loans$1,027 $1,711 $2,738 
LHI, MW2,198 101 2,299 
Debt Securities604 1,109 1,713 
Equity securities and other investments(330)2 (328)
Interest-bearing deposits in other banks32 206 238 
Total increase in interest income3,531 3,129 6,660 
Interest-bearing liabilities:
Interest-bearing demand and savings deposits(695)(470)(1,165)
Certificates and other time deposits3,779 540 4,319 
Advances from FHLB78 (1)77 
Subordinated debentures and subordinated notes4 (5)(1)
Total increase in interest expense3,166 64 3,230 
Increase in net interest income$365 $3,065 $3,430 
Provision for Credit Losses
Our provision for credit losses is a charge to income in order to bring our ACL to a level deemed appropriate by management. We recorded a provision for credit losses of $8.3 million for the three months ended June 30, 2024, compared to $7.5 million provision for the three months ended March 31, 2024. The change was primarily attributable to an increase in general reserves as a result of changes in economic factors. For the three months ended June 30, 2024, we recorded no benefit or provision for unfunded commitments, compared to a $1.5 million benefit for unfunded commitments for the three months ended March 31, 2024, as the balance of unfunded commitments remained relatively flat quarter over quarter.

48

Noninterest Income
Our primary sources of recurring noninterest income are service charges and fees on deposit accounts, loan fees, loss on sales of debt securities, government guaranteed loan income, net, customer swap income, and other income. Noninterest income does not include loan origination fees, which are generally recognized over the life of the related loan as an adjustment to yield using the interest method.
The following table presents, for the periods indicated, the major categories of noninterest income:
For the Three Months Ended
June 30,March 31,Increase
 20242024(Decrease)
 (In thousands)
Noninterest income:
Service charges and fees on deposit accounts$4,974 $4,896 $78 
Loan fees2,207 2,510 (303)
Loss on sales of debt securities— (6,304)6,304 
Government guaranteed loan income, net1,320 2,614 (1,294)
Customer swap income326 449 (123)
Other1,751 2,497 (746)
Total noninterest income$10,578 $6,662 $3,916 
Noninterest income for the three months ended June 30, 2024 increased $3.9 million, or 58.8%, to $10.6 million compared to noninterest income of $6.7 million for the three months ended March 31, 2024. The primary drivers of the increase were as follows.
Loss on sales of debt securities. The change in the loss on sale of debt securities during the three months ended June 30, 2024, compared to the three months ended March 31, 2024, was due to a $6.3 million loss on sales of debt securities as a result of a strategic restructuring in which we sold $120.1 million of lower-yielding AFS debt securities, at amortized cost, with a 3.11% average yield. There was no corresponding restructuring completed during the three months ended June 30, 2024.
Government guaranteed loan income, net. Government guaranteed loan income, net, includes income related to the sales of government guaranteed loans. The decrease in government guaranteed loan income, net, of $1.3 million, or 49.5%, for the three months ended June 30, 2024, compared to the three months ended March 31, 2024, was primarily due to a $1.8 million decrease in the gain on sale of SBA and USDA loans. The decrease was partially offset by an increase of $522 thousand on government guaranteed loans carried at fair value.
Other. Other includes other noninterest income from fees. Other noninterest income was $1.8 million for the three months ended June 30, 2024, a decrease of $746 thousand, or 29.9%, as compared to the three months ended March 31, 2024. The decrease was primarily driven by a decrease in BOLI income of $1.3 million, which was partially offset by a $575 thousand increase in the valuation adjustment and amortization of our servicing asset compared to the three months ended March 31, 2024. The remaining changes were nominal amongst individual other noninterest income accounts.
49

Noninterest Expense
Noninterest expense is composed of all employee expenses and costs associated with operating our facilities, acquiring and retaining customer relationships and providing bank services. The major component of noninterest expense is salaries and employee benefits. Noninterest expense also includes operational expenses, such as occupancy and equipment expenses, professional fees and regulatory fees, data processing and software expenses, marketing expenses, amortization of intangibles, telephone and communications expenses and other expenses.
The following table presents, for the periods indicated, the major categories of noninterest expense:
For the Three Months Ended
June 30,March 31,Increase
 20242024(Decrease)
 (In thousands)
Salaries and employee benefits$32,790 $33,365 $(575)
Occupancy and equipment4,585 4,677 (92)
Professional and regulatory fees5,617 6,053 (436)
Data processing and software expense5,097 4,856 241 
Marketing1,976 1,546 430 
Amortization of intangibles2,438 2,438 — 
Telephone and communications365 261 104 
Other10,273 8,920 1,353 
Total noninterest expense$63,141 $62,116 $1,025 
 
Noninterest expense for the three months ended June 30, 2024 increased $1.0 million, or 1.7%, to $63.1 million compared to noninterest expense of $62.1 million for the three months ended March 31, 2024. The most significant components of the increase were as follows:

Salaries and employee benefits. Salaries and employee benefits include payroll expense, the cost of incentive compensation, benefit plans, health insurance and payroll taxes. These expenses are impacted by the amount of direct loan origination costs, which are required to be deferred in accordance with ASC 310-20. Salaries and employee benefits were $32.8 million for the three months ended June 30, 2024, a decrease of $575 thousand, or 1.7%, compared to the three months ended March 31, 2024. The decrease was primarily attributable to a $1.2 million decrease in lender incentives and an $804 thousand decrease in payroll taxes. The decrease was partially offset by a $613 thousand increase in severance costs, a $472 thousand increase in general bonuses and a $446 thousand increase in officer salaries. The remaining changes were nominal amongst individual other salaries and employee benefits expense accounts.

Other noninterest expense. This category includes loan operations and collections, supplies and printing, automatic teller and online expenses and other miscellaneous expenses. Other noninterest expense was $10.3 million for the three months ended June 30, 2024, compared to $8.9 million for the three months ended March 31, 2024, an increase of $1.4 million, or 15.2%. This increase was primarily due to an increase of $995 thousand in earned credit rebates during the three months ended June 30, 2024 as compared to the three months ended March 31, 2024. The remaining changes were nominal amongst individual other noninterest expense accounts

Income Tax Expense 

Income tax expense is a function of our pre-tax income, tax-exempt income and other nondeductible expenses. Deferred tax assets and liabilities reflect current statutory income tax rates in effect for the period in which the deferred tax assets and liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. As of December 31, 2023, a $4.2 million valuation allowance was established relating to an impairment on our investment in Thrive. The position was upheld as of June 30, 2024 and March 31, 2024, respectively.
 
50

For the three months ended June 30, 2024, income tax expense totaled $8.2 million, an increase of $984 thousand, compared to an income tax expense of $7.2 million for the three months ended March 31, 2024. For the three months ended June 30, 2024, we had an effective tax rate of 23.2%. The increase was primarily due to a one-time tax expense of $527 thousand. The Company also had a net discrete tax expense of $26 thousand associated with the recognition of an excess tax expense realized on share-based payment awards made during the three months ended June 30, 2024. Excluding this discrete tax item, the Company had an effective tax rate of 23.1% for the three months ended June 30, 2024.

Results of Operations for the Three Months Ended June 30, 2024 and June 30, 2023

General

    Net income for the three months ended June 30, 2024 was $27.2 million, a decrease of $6.5 million, or 19.4%, from net income of $33.7 million for the three months ended June 30, 2023.
    Basic EPS for the three months ended June 30, 2024 was $0.50, a decrease of $0.12 from $0.62 for the three months ended June 30, 2023. Diluted EPS for the three months ended June 30, 2024 was $0.50, a decrease of $0.12 from $0.62 for the three months ended June 30, 2023.
Net Interest Income

For the three months ended June 30, 2024, net interest income totaled $96.2 million and net interest margin and net interest spread were 3.29% and 2.04%, respectively. For the three months ended June 30, 2023, net interest income totaled $100.8 million and net interest margin and net interest spread were 3.51% and 2.50%, respectively. The decrease in net interest income was primarily due to an increase in interest expense of $16.7 million on certificates and other time deposits and a $12.7 million increase on transaction and savings deposits. The decrease was partially offset by a $16.1 million decrease in advances from FHLB, a $5.2 million increase in interest income on debt securities and an increase of $3.3 million on interest on loans during the three months ended June 30, 2024, compared to the three months ended June 30, 2023. Net interest margin decreased 22 bps to 3.29% from 3.51% for the three months ended June 30, 2024, compared to the three months ended June 30, 2023, primarily due to an increase in average cost of interest-bearing deposits during the three months ended June 30, 2024. The average cost of interest-bearing deposits increased to 4.46% for the three months ended June 30, 2024 from 3.61% for the three months ended June 30, 2023.

For the three months ended June 30, 2024, interest expense totaled $95.0 million and the average rate paid on interest-bearing liabilities was 4.50%. For the three months ended June 30, 2023, interest expense totaled $81.7 million and the average rate paid on interest-bearing liabilities was 3.86%. The quarter-over-quarter increase was primarily due to increases in the average rates paid on transaction and savings deposits, and certificates and other time deposits.

The following table presents, for the periods indicated, an analysis of net interest income by each major category of interest-earning assets and interest-bearing liabilities, the average amounts outstanding and the interest earned or paid on such amounts. The table also sets forth the average rates earned on interest-earning assets, the average rates paid on interest-bearing liabilities, and the net interest margin on average total interest-earning assets for the same periods. Interest earned on loans that are classified as nonaccrual is not recognized in income; however, the balances are reflected in average outstanding balances for the period. For the three months ended June 30, 2024 and three months ended June 30, 2023, interest income not recognized on nonaccrual loans was $763 thousand and $2.0 million, respectively. Any nonaccrual loans have been included in the table as loans carrying a zero yield.

51

For the Three Months Ended
June 30, 2024June 30, 2023
InterestInterest
AverageEarned/AverageAverageEarned/Average
OutstandingInterestYield/OutstandingInterestYield/
BalancePaidRateBalancePaidRate
(Dollars in thousands)
Assets                                                       
Interest-earning assets:
Loans(1)
$9,344,482 $160,323 6.90 %$9,285,550 $158,685 6.85 %
LHI, MW420,946 6,656 6.36 371,763 5,042 5.44 
Debt Securities1,352,293 15,408 4.58  1,133,845 10,166 3.60 
Interest-earning deposits in other banks560,586 7,722 5.54  583,818 7,507 5.16 
Equity securities and other investments78,964 1,138 5.80  137,868 1,118 3.25 
Total interest-earning assets11,757,271 191,247 6.54  11,512,844 182,518 6.36 
ACL(115,978)   (102,559)
Noninterest-earning assets937,413   939,938
Total assets$12,578,706   $12,350,223 
Liabilities and Stockholders’ Equity      
Interest-bearing liabilities:      
Interest-bearing demand and savings deposits$4,570,329 $45,619 4.01 %$3,919,745 $32,957 3.37 %
Certificates and other time deposits3,591,035 44,811 5.02 2,873,548 28,100 3.92 
Advances from FHLB106,648 1,468 5.54 1,472,912 17,562 4.78 
Subordinated debentures and subordinated debt230,141 3,113 5.44 229,151 3,068 5.37 
Total interest-bearing liabilities8,498,153 95,011 4.50 8,495,356 81,687 3.86 
Noninterest-bearing liabilities:      
Noninterest-bearing deposits2,346,908 2,175,002 
Other liabilities192,036 169,240 
Total liabilities11,037,097 10,839,598 
Stockholders’ equity1,541,609 1,510,625 
Total liabilities and stockholders’ equity$12,578,706 $12,350,223 
Net interest rate spread(2)
2.04 %2.50 %
Net interest income$96,236 $100,831 
Net interest margin(3)
3.29 %3.51 %
(1) Includes average outstanding balances of LHFS of $58.5 million and $23.4 million for the three months ended June 30, 2024 and three months ended June 30, 2023, respectively, and average balances of LHI, excluding MW loans.
(2) Net interest rate spread is equal to 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.

52

The following table presents the changes in interest income and interest expense for the periods indicated for each major component of interest-earning assets and interest-bearing liabilities and distinguishes between the changes attributable to changes in volume and interest rates. For purposes of this table, changes attributable to both rate and volume that cannot be segregated have been allocated to rate.
 For the Three Months Ended
 June 30, 2024 vs. June 30, 2023
 Increase (Decrease) 
 Due to Change in 
 VolumeRateTotal
 (In thousands)
Interest-earning assets:
Loans$1,004 $634 $1,638 
LHI, MW665 949 1,614 
Debt Securities2,631 2,611 5,242 
Equity securities and other investments(319)534 215 
Interest-bearing deposits in other banks(383)403 20 
Total increase in interest income3,598 5,131 8,729 
Interest-bearing liabilities:
Interest-bearing demand and savings deposits7,744 4,918 12,662 
Certificates and other time deposits6,997 9,714 16,711 
Advances from FHLB(16,246)152 (16,094)
Subordinated debentures and subordinated notes13 32 45 
Total (decrease) increase in interest expense(1,491)14,815 13,324 
Increase (decrease) in net interest income$5,089 $(9,684)$(4,595)
Provision for Credit Losses
Our provision for credit losses is a charge to income in order to bring our ACL to a level deemed appropriate by management. We recorded a provision for credit losses of $8.3 million for the three months ended June 30, 2024, compared to $15.0 million provision for the three months ended June 30, 2023. The change was primarily a result of changes in economic factors, qualitative factors and specific reserves on loans that do not share similar risk characteristics. For the three months ended June 30, 2024, we recorded no benefit or provision for unfunded commitments, compared to a $1.1 million benefit for unfunded commitments for the three months ended June 30, 2023. The main driver for no provision for unfunded commitments for the three months ended June 30, 2024 is due to a reduction of unfunded commitments from the three months ended June 30, 2023.

53

Noninterest Income
Our primary sources of recurring noninterest income are service charges and fees on deposit accounts, loan fees, gain on the sale of mortgage loans, government guaranteed loan income, net, equity method investment (loss) income, customer swap income, and other income. Noninterest income does not include loan origination fees, which are generally recognized over the life of the related loan as an adjustment to yield using the interest method.
The following table presents, for the periods indicated, the major categories of noninterest income:
For the Three Months Ended
June 30,June 30,Increase
 20242023(Decrease)
 (In thousands)
Noninterest income:
Service charges and fees on deposit accounts$4,974 $5,272 $(298)
Loan fees2,207 1,520 687 
Government guaranteed loan income, net1,320 4,144 (2,824)
Equity method investment (loss) income— 485 (485)
Customer swap income326 983 (657)
Other1,751 1,288 463 
Total noninterest income$10,578 $13,692 $(3,114)
Noninterest income for the three months ended June 30, 2024 decreased $3.1 million, or 22.7%, to $10.6 million compared to noninterest income of $13.7 million for the three months ended June 30, 2023. The primary drivers of the decrease were as follows.
Government guaranteed loan income, net. Government guaranteed loan income, net, includes income related to the sales of government guaranteed loans. The decrease in government guaranteed loan income, net, of $2.8 million, or 68.1%, for the three months ended June 30, 2024, compared to the three months ended June 30, 2023, was primarily due to a $4.4 million decrease in the gain on sale of SBA and USDA loans. The decrease was partially offset by an increase of $1.5 million on government guaranteed loans carried at fair value.

54

Noninterest Expense
Noninterest expense is composed of all employee expenses and costs associated with operating our facilities, acquiring and retaining customer relationships and providing bank services. The major component of noninterest expense is salaries and employee benefits. Noninterest expense also includes operational expenses, such as occupancy and equipment expenses, professional fees and regulatory fees, data processing and software expenses, marketing expenses, amortization of intangibles and other expenses.
The following table presents, for the periods indicated, the major categories of noninterest expense:
For the Three Months Ended
June 30,June 30,Increase
 20242023(Decrease)
 (In thousands)
Salaries and employee benefits$32,790 $28,650 $4,140 
Occupancy and equipment4,585 4,827 (242)
Professional and regulatory fees5,617 6,868 (1,251)
Data processing and software expense5,097 4,709 388 
Marketing1,976 2,627 (651)
Amortization of intangibles2,438 2,468 (30)
Telephone and communications365 355 10 
Other10,273 6,693 3,580 
Total noninterest expense$63,141 $57,197 $5,944 
 
Noninterest expense for the three months ended June 30, 2024 increased $5.9 million, or 10.4%, to $63.1 million compared to noninterest expense of $57.2 million for the three months ended June 30, 2023. The most significant components of the increase were as follows:

Salaries and employee benefits. Salaries and employee benefits include payroll expense, the cost of incentive compensation, benefit plans, health insurance and payroll taxes. These expenses are impacted by the amount of direct loan origination costs, which are required to be deferred in accordance with ASC 310-20. Salaries and employee benefits were $32.8 million for the three months ended June 30, 2024, an increase of $4.1 million, or 14.5%, compared to the three months ended June 30, 2023. The increase was primarily attributable to a $2.1 million increase in officer salaries, a $1.4 million increase in lender incentives and a $602 thousand decrease in contra origination costs. The remaining changes were nominal amongst individual salaries and employee benefits expense accounts.

Professional and regulatory fees. This category includes legal, professional, audit, regulatory, and FDIC’s assessment fees. The decrease of $1.3 million, or 18.2%, for the three months ended June 30, 2024 was primarily attributable to a decrease in FDIC assessment fees of $937 thousand, compared to the three months ended June 30, 2023. The remaining changes were nominal amongst individual professional and regulatory fee expense accounts.

Marketing. This category of expenses includes expenses related to advertising and promotions. For the three months ended June 30, 2024, marketing expense was $2.0 million, a decrease of $651 thousand or 24.8%, compared to the three months ended June 30, 2023. The decrease was primarily attributable to a $653 thousand decrease in advertising and promotions expenses. The remaining changes were nominal amongst individual marketing expense accounts.

Other noninterest expense. This category includes loan operations and collections, supplies and printing, automatic teller and online expenses and other miscellaneous expenses. Other noninterest expense was $10.3 million for the three months ended June 30, 2024, compared to $6.7 million for the three months ended June 30, 2023, an increase of $3.6 million, or 53.5%. This increase was primarily due to an increase of $3.7 million in earned credit rebates, partially offset by a $900 thousand decrease in miscellaneous expenses during the three months ended June 30, 2024 as compared to the three months ended June 30, 2023.



55


Income Tax Expense 

Income tax expense is a function of our pre-tax income, tax-exempt income and other nondeductible expenses. Deferred tax assets and liabilities reflect current statutory income tax rates in effect for the period in which the deferred tax assets and liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. As of December 31, 2023, a $4.2 million valuation allowance was established relating to an impairment on our investment in Thrive. The position was upheld as of June 30, 2024. As of June 30, 2023, we did not believe a valuation allowance was necessary.

For the three months ended June 30, 2024, income tax expense totaled $8.2 million, a decrease of $1.5 million, compared to an income tax expense of $9.7 million for the three months ended June 30, 2023. For the three months ended June 30, 2024, we had an effective tax rate of 23.2%. The Company had a one-time tax expense of $527 thousand and a net discrete tax expense of $26 thousand associated with the recognition of an excess tax expense realized on share-based payment awards made during the three months ended June 30, 2024. Excluding this discrete tax item, the Company had an effective tax rate of 23.1% for the three months ended June 30, 2024.

For the three months ended June 30, 2023, we had an effective tax rate of 22.4%. The Company had a net discrete tax expense of $41 thousand associated with the recognition of an excess tax expense realized on share-based payment awards during the three months ended June 30, 2023. Excluding this discrete tax item, the Company had an effective tax rate of 22.3% for the three months ended June 30, 2023.
56

Results of Operations for the Six Months Ended June 30, 2024 and June 30, 2023

General

    Net income for the six months ended June 30, 2024 was $51.4 million, a decrease of $20.7 million, or 28.7%, from net income of $72.1 million for the six months ended June 30, 2023.
    Basic EPS for the six months ended June 30, 2024 was $0.94, a decrease of $0.39 from $1.33 for the six months ended June 30, 2023. Diluted EPS for the six months ended June 30, 2024 was $0.94, a decrease of $0.38 from $1.32 for the six months ended June 30, 2023.
Net Interest Income

For the six months ended June 30, 2024, net interest income before provisions for credit losses totaled $189.0 million and net interest margin and net interest spread were 3.27% and 2.01%, respectively. For the six months ended June 30, 2023, net interest income before provision for credit losses totaled $204.2 million and net interest margin and net interest spread were 3.60% and 2.61%, respectively. Net interest margin decreased 33 bps from the six months ended June 30, 2023, primarily due to an increase in the average rate paid on interest-bearing liabilities, partially offset by an increase in the average yields earned on interest-earning assets. The decrease in net interest income of $15.2 million was primarily attributable to an increase of $36.2 million in interest expense on certificates and other time deposits and a $29.6 million increase in interest expense on transaction accounts. The decrease was partially offset by a $27.1 million decrease in interest expense on advances from FHLB, an increase in interest income on loans of $13.5 million due to an increase in loan yields and higher average balances, a $7.9 million increase in interest income on debt securities and a $2.7 million increase in interest income on deposits in financial institutions and fed funds sold during the six months ended June 30, 2024, compared to the six months ended June 30, 2023. The $65.8 million increase in interest expense on deposit accounts was due to an increase in average funding costs of total deposits and borrowings. As a result, the average cost of interest-bearing deposits increased 111 bps to 4.44% for the six months ended June 30, 2024 from 3.33% for the six months ended June 30, 2023. The average costs of total deposits, including noninterest-bearing deposits, for the six months ended June 30, 2024 increased 96 bps to 3.44% compared to 2.48% for the six months ended June 30, 2023.

For the six months ended June 30, 2024, interest expense totaled $186.8 million and the average rate paid on interest-bearing liabilities was 4.48%. For the six months ended June 30, 2023, interest expense totaled $147.9 million and the average rate paid on interest-bearing liabilities was 3.60%. The increase of $39.0 million in interest expense was primarily due increases in the average rates paid on interest-bearing demand and savings deposits, certificates and other time deposits driven by the impact of rising interest rates year over year.


57

    The following table presents, for the periods indicated, an analysis of net interest income by each major category of interest-earning assets and interest–bearing liabilities, the average amounts outstanding and the interest earned or paid on such amounts. The table also sets forth the average rate earned on interest-earning assets, the average rate paid on interest-bearing liabilities, and the net interest margin on average total interest-earning assets for the same periods. Interest earned on loans that are classified as non-accrual is not recognized in income; however, the balances are reflected in average outstanding balances for the period. For the six months ended June 30, 2024 and June 30, 2023, interest income not recognized on non-accrual loans was $1.5 million and $2.8 million, respectively. Any non-accrual loans have been included in the table as loans carrying a zero yield.

For the Six Months Ended June 30,
20242023
InterestInterest
AverageEarned/AverageAverageEarned/Average
OutstandingInterestYield/OutstandingInterestYield/
BalancePaidRateBalancePaidRate
(Dollars in thousands)
Assets                                                       
Interest-earning assets:
Loans(1)
$9,314,148 $317,908 6.86 %$9,213,742 $305,486 6.69 %
LHI, MW350,252 11,013 6.32 366,000 9,948 5.48 
Debt securities1,323,644 29,103 4.42 1,192,823 21,154 3.58 
Interest-bearing deposits in other banks572,589 15,772 5.54 531,373 13,041 4.95 
Equity securities and other investments77,616 2,038 5.28 131,462 2,526 3.87 
Total interest-earning assets11,638,249 375,834 6.49 11,435,400 352,155 6.21 
ACL(114,104)  (97,639)  
Noninterest-earning assets933,229   944,883   
Total assets$12,457,374   $12,282,644   
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand and savings deposits$4,604,887 $92,403 4.04 %$4,033,975 $62,814 3.14 %
Certificates and other time deposits3,437,385 85,303 4.99 2,731,925 49,067 3.62 
Advances from FHLB103,819 2,859 5.54 1,298,765 29,920 4.65 
Subordinated debentures and subordinated notes230,011 6,227 5.44 230,195 6,134 5.37 
Total interest-bearing liabilities8,376,102 186,792 4.48 8,294,860 147,935 3.60 
Noninterest-bearing liabilities:      
Noninterest-bearing deposits2,351,112   2,322,790   
Other liabilities192,422   171,299   
Total liabilities10,919,636   10,788,949   
Stockholders’ equity1,537,738   1,493,695   
Total liabilities and stockholders’ equity$12,457,374   $12,282,644   
Net interest rate spread(2)
 2.01 % 2.61 %
Net interest income $189,042  $204,220 
Net interest margin(3)
 3.27 % 3.60 %
(1) Includes average outstanding balances of LHFS of $56.2 million and $21.5 million for the six months ended June 30, 2024 and June 30, 2023, respectively, and average balances of LHI, excluding MW.
(2) Net interest rate spread is equal to 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.
58

The following table presents the changes in interest income and interest expense for the periods indicated for each major component of interest-earning assets and interest-bearing liabilities and distinguishes between the changes attributable to changes in volume and interest rates. For purposes of this table, changes attributable to both rate and volume that cannot be segregated have been allocated to rate.
 For the Six Months Ended
June 30, 2024 vs June 30, 2023
 Increase (Decrease) 
 Due to Change in 
 VolumeRateTotal
 (In thousands)
Interest-earning assets:
Loans$3,338 $9,084 $12,422 
LHI, MW(429)1,494 1,065 
Debt securities2,326 5,623 7,949 
Interest-bearing deposits in other banks1,014 1,717 2,731 
Equity securities and other investments(1,038)550 (488)
Total increase in interest income5,211 18,468 23,679 
Interest-bearing liabilities:
Interest-bearing demand and savings deposits8,915 20,674 29,589 
Certificates and other time deposits12,706 23,530 36,236 
Advances from FHLB(27,605)544 (27,061)
Subordinated debentures and subordinated notes(5)98 93 
Total increase in interest expense(5,989)44,846 38,857 
Increase in net interest income$11,200 $(26,378)$(15,178)
Provision for Credit Losses
Our provision for credit losses is a charge to income in order to bring our ACL to a level deemed appropriate by management. For a description of the factors taken into account by management in determining the ACL see “—Financial Condition—ACL on LHI”. The provision for credit loan losses was $15.8 million for the six months ended June 30, 2024, compared to a $24.4 million provision for credit loan losses for the six months ended June 30, 2023, a decrease of $8.6 million. The decrease in the recorded provision for credit losses for the six months ended June 30, 2024 was primarily attributable to changes in economic factors, qualitative factors and specific reserves on loans that do not share similar risk characteristics.

For the six months ended June 30, 2024, we also recorded a $1.5 million benefit for unfunded commitments compared to a $368 thousand provision for unfunded commitments for six months ended June 30, 2023. The change from a provision to a benefit for unfunded commitments was attributable to a decrease in unfunded commitment balances and changes in economic factors. We utilize the same loss rates for the provision for on balance sheet loans and unfunded commitments.

59

Noninterest Income
The following table presents, for the periods indicated, the major categories of noninterest income:
 For the  
 Six Months Ended 
 June 30,Increase
 20242023(Decrease)
 (In thousands)
Noninterest income:
Service charges and fees on deposit accounts$9,870 $10,289 $(419)
Loan fees4,717 3,584 1,133 
Loss on sales of debt securities(6,304)(5,321)(983)
Government guaranteed loan income, net3,934 13,832 (9,898)
Equity method investment loss— (1,036)1,036 
Customer swap income775 1,196 (421)
Other4,248 4,679 (431)
Total noninterest income$17,240 $27,223 $(9,983)

Noninterest income for the six months ended June 30, 2024 decreased $10.0 million, or 36.7%, to $17.2 million compared to noninterest income of $27.2 million for the six months ended June 30, 2023. The primary drivers of the decrease were as follows:
Loan fees. The increase in loan fees of $1.1 million is primarily due to a $520 thousand increase in late charges on CRE loans and a $390 thousand of syndications and related fees. The remaining changes were nominal amongst individual other noninterest income accounts
Loss on sales of debt securities. The decrease in the loss on sale of debt securities during the six months ended June 30, 2024, compared to the six months ended June 30, 2023, was due to a $6.3 million loss on sales of debt securities due to as a result of a strategic restructuring in which we sold $120.1 million of lower-yielding AFS debt securities, at amortized cost, with a 3.11% average yield compared to a $5.3 million loss on sales of debt securities due to the Company selling $116.2 million of debt securities in March 2023. There was no corresponding restructuring completed during the six months ended June 30, 2024.
Government guaranteed loan income, net. Government guaranteed loan income, net, includes income related to the sales of SBA and USDA loans. The decrease in government guaranteed loan income, net, of $9.9 million during the six months ended June 30, 2024 was primarily due to a $9.8 million decrease in the gain on sale of USDA loans and a decrease of $1.3 million in government guaranteed LHFS loan valuation, compared to the six months ended June 30, 2023. The decrease was partially offset by an increase of $1.2 million in the gain on sale of SBA loans.
Equity method investment loss. Equity method investment loss is comprised of losses and gains primarily related to our previous Thrive Investment. The change in equity method investment loss is related to the Company divesting of our equity method investment in Thrive related to Thrive’s entry into a definitive agreement in December 2023 to be acquired by Lower, which acquisition closed in March of 2024. Our subsequent investment in Lower is accounted for under cost method accounting.

60

Noninterest Expense

The following table presents, for the periods indicated, the major categories of noninterest expense:
For the
 Six Months Ended
 June 30,Increase
 20242023(Decrease)
 (In thousands)
Noninterest expense
Salaries and employee benefits$66,155 $60,515 $5,640 
Occupancy and equipment9,262 9,800 (538)
Professional and regulatory fees11,670 11,257 413 
Data processing and software expense9,953 9,429 524 
Marketing3,522 4,406 (884)
Amortization of intangibles4,876 4,963 (87)
Telephone and communications626 833 (207)
Other19,193 12,609 6,584 
Total noninterest expense$125,257 $113,812 $11,445 
 
Noninterest expense for the six months ended June 30, 2024 increased $11.4 million, or 10.1%, to $125.3 million compared to noninterest expense of $113.8 million for the six months ended June 30, 2023. The most significant components of the increase were as follows:
 
Salaries and employee benefits. Salaries and employee benefits include payroll expense, the cost of incentive compensation, benefit plans, health insurance and payroll taxes. These expenses are impacted by the amount of direct loan origination costs, which are required to be deferred in accordance with ASC 310-20. Salaries and employee benefits were $66.2 million for the six months ended June 30, 2024, an increase of $5.6 million, or 9.3%, compared to the six months ended June 30, 2023. The increase was primarily attributable to a $3.9 million increase in officer salaries, a $1.1 million increase in lender incentives and a decrease of $1.8 million in contra origination costs, offset by a a $1.3 million decrease in severance costs. The remaining changes were nominal amongst individual other noninterest expense accounts.

Marketing. This category of expenses includes expenses related to advertising and promotions. For the six months ended June 30, 2024, marketing expense was $3.5 million, a decrease of $884 thousand or 20.1%, compared to the six months ended June 30, 2023. The decrease was primarily attributable to a $983 thousand decrease in advertising and promotions expenses, partially offset by an increase of $185 thousand in CRA donations.

Other noninterest expense. This category includes loan operations and collections, supplies and printing, automatic teller and online expenses and other miscellaneous expenses. Other noninterest expense was $19.2 million for the six months ended June 30, 2024, compared to $12.6 million for the same period in 2023, an increase of $6.6 million, or 52.2%. This increase was primarily due to an increase of $6.4 million in earned credit rebates during the six months ended June 30, 2024 as compared to the same period in 2023. The remaining changes were nominal amongst individual other noninterest expense accounts.

Income Tax Expense
 
Income tax expense is a function of our pre-tax income, tax-exempt income and other nondeductible expenses. Deferred tax assets and liabilities reflect current statutory income tax rates in effect for the period in which the deferred tax assets and liabilities are expected to be realized or settled. As changes in tax laws or statutory tax rates are enacted, deferred tax assets and liabilities are adjusted through the provision of income taxes. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. As of December 31, 2023, a $4.2 million valuation allowance was established relating to an impairment on our investment in Thrive. The position was upheld as of June 30, 2024. As of June 30, 2023, the Company did not believe a valuation allowance was necessary.
 
61

For the six months ended June 30, 2024, income tax expense totaled $15.5 million, a decrease of $5.2 million or 25.5% , compared to an income tax expense of $20.7 million for the six months ended June 30, 2023. For the six months ended June 30, 2024, we had an effective tax rate of 23.1% which includes a one-time tax expense of $527 thousand and a discrete tax expense of $410 thousand associated with the recognition of an excess tax expense realized on share-based payment awards. Excluding this discrete tax item, the Company had an effective tax rate of 22.5%.

For the six months ended June 30, 2023, we had an effective tax rate of 22.3% which includes a discrete tax expense of $153 thousand associated with the recognition of an excess tax expense realized on share-based payment awards. Excluding this discrete tax item, the Company had an effective tax rate of 22.1%.
62

Financial Condition
 
Our total assets increased $290.0 million, or 2.3%, from $12.39 billion as of December 31, 2023 to $12.68 billion as of June 30, 2024. Our asset growth was due to the continued execution of our strategy to establish deep relationships in the Dallas-Fort Worth metroplex and the Houston metropolitan area. We believe these relationships will continue to bring in new customer accounts and grow balances from existing loan and deposit customers.
 
Loan Portfolio
 
Our primary source of income is interest on loans to individuals, professionals, small to medium-sized businesses and commercial companies primarily located in the Dallas-Fort Worth metroplex and Houston metropolitan area. Our loan portfolio consists primarily of commercial loans and real estate loans secured by CRE properties located in our primary market areas. Our loan portfolio represents the highest yielding component of our interest-earning asset base.
 
As of June 30, 2024, total LHI, excluding ACL, was $9.78 billion, an increase of $191.8 million, or 2.0%, compared to $9.59 billion as of December 31, 2023. The increase was the result of the continued execution and success of our loan growth strategy. In addition to these amounts, $57.0 million and $79.1 million in loans were classified as LHFS as of June 30, 2024 and December 31, 2023, respectively.
 
Total LHI as a percentage of deposits were 91.2% and 92.8% as of June 30, 2024 and December 31, 2023, respectively. Total LHI, excluding MW loans, as a percentage of deposits were 85.9% and 89.1% as of June 30, 2024 and December 31, 2023, respectively. Total LHI as a percentage of assets were 77.1% and 77.4% as of June 30, 2024 and December 31, 2023, respectively.

The following table summarizes our loan portfolio by type of loan as of the dates indicated:

 As of June 30,As of December 31,
 20242023Increase (Decrease)
 Amount% of TotalAmount% of TotalAmount% Change Quarter over Quarter
 (Dollars in thousands)
Commercial$2,798,260 28.6 %$2,752,063 28.7 %$46,197 1.7 %
MW568,047 5.8 377,796 3.9 190,251 50.4 
Real estate:  
OOCRE806,285 8.2 794,088 8.3 12,197 1.5 
NOOCRE2,369,848 24.2 2,350,725 24.5 19,123 0.8 
Construction and land1,536,580 15.7 1,734,254 18.1 (197,674)(11.4)
Farmland30,512 0.3 31,114 0.3 (602)(1.9)
1-4 family residential917,402 9.4 937,119 9.8 (19,717)(2.1)
Multifamily748,740 7.7 605,817 6.3 142,923 23.6 
Consumer9,245 0.1 10,149 0.1 (904)(8.9)
Total LHI, carried at amortized cost(1)
$9,784,919 100.0 %$9,593,125 100.0 %$191,794 2.0 %
Total LHFS$57,046 $79,072 
(1) Total LHI, carried at amortized cost, excludes $7.8 million and $8.8 million of deferred loan fees, net, as of June 30, 2024 and December 31, 2023, respectively.




63

CRE Portfolio Composition
The majority of our CRE loan portfolio consists of multifamily residential, NOOCRE and construction and land loans. The table below details the composition of the multifamily residential, NOOCRE and construction and land loan portfolio's by borrower type and geographic location.
As of June 30,
2024
Property TypeDFWHouston
Secondary Texas(1)
Out of StateTotal% of Total Loans
Industrial$426,807 $259,402 $166,181 $305,461 $1,157,851 11.8 %
Multifamily446,018 499,391 194,558 119,824 1,259,791 12.9 
Office306,705 115,689 28,564 32,559 483,517 4.9 
Retail183,021 194,777 134,433 180,868 693,099 7.1 
Hotel168,656 23,999 112,156 140,840 445,651 4.6 
SFR233,762 30,738 68,072 9,817 342,389 3.5 
Other86,716 80,117 54,618 51,419 272,870 2.8 
Total CRE$1,851,685 $1,204,113 $758,582 $840,788 $4,655,168 47.6 %
As of December 31,
2023
Property TypeDFWHouston
Secondary Texas(1)
Out of StateTotal% of Total Loans
Industrial$409,899 $263,880 $151,780 $265,138 $1,090,697 11.4 %
Multifamily395,344 506,761 165,340 125,890 1,193,335 12.4 
Office361,612 137,486 31,914 32,627 563,639 5.9 
Retail192,770 188,582 138,176 179,536 699,064 7.3 
Hotel166,356 22,764 110,795 141,054 440,969 4.6 
SFR250,151 29,556 89,582 8,201 377,490 3.9 
Other81,981 108,512 53,438 81,671 325,602 3.4 
Total CRE$1,858,113 $1,257,541 $741,025 $834,117 $4,690,796 48.9 %
(1)Includes loans made to markets in the state of Texas outside of DFW and Houston.









64

Out of State Concentration
The majority of the Company's loan portfolio consists of loans to businesses and individuals in the Dallas-Fort Worth metroplex and the Houston metropolitan area. The following table provides details on our out of state portfolio concentration:
As of June 30,As of December 31,
20242023
Out of State Loan PortfolioAmountPercent of Total LoansAmountPercent of Total Loans
(Dollars in thousands)
Commercial Real Estate$771,163 7.9 %$784,523 8.2 %
Lender Finance618,639 6.3 536,568 5.6 
Commercial343,640 3.5 355,626 3.7 
MW273,397 2.8 141,329 1.5 
Mortgage Servicing Rights221,215 2.3 227,002 2.4 
1-4 Family Residential250,046 2.6 259,745 2.7 
USDA and SBA200,384 2.0 199,184 2.1 
Other8,735 0.1 370 — 
Total Out of State Loans$2,687,219 27.5 %$2,504,347 26.1 %
Nonperforming Assets

The following table presents information regarding nonperforming assets by category as of the dates indicated:
 As of June 30,As of December 31,
 20242023
(Dollars in thousands)
Nonperforming loans(1)
Construction and land$6,578 $6,793 
1-4 family residential2,006 1,965 
OOCRE5,702 9,719 
NOOCRE14,041 33,479 
    Commercial30,263 40,868 
    Consumer20 24 
Accruing loans 90 or more days past due143 2,975 
        Total nonperforming loans58,753 95,823 
OREO24,256 — 
         Total nonperforming assets$83,009 $95,823 
Nonperforming assets to total assets0.65 %0.77 %
Nonperforming assets to total loans and OREO0.85 %0.99 %
Nonperforming loans to total loans0.60 %1.00 %
(1) At June 30, 2024 and December 31, 2023, nonaccrual loans included $73 thousand and $13.7 million, respectively, of PCD loans that are accounted for on a pooled basis.


65

Potential Problem Loans

The following tables summarize our internal ratings of our loans as of the dates indicated.
 June 30, 2024
 PassSpecial
Mention		Substandard
PCD1
Total
(Dollars in thousands)
Real estate:
Construction and land$1,495,614 $34,388 $6,578 $— $1,536,580 
Farmland30,512 — — — 30,512 
1 - 4 family residential908,470 4,932 2,927 1,073 917,402 
Multi-family residential748,172 — 568 — 748,740 
OOCRE756,700 27,319 11,985 10,281 806,285 
NOOCRE2,099,373 222,760 47,282 433 2,369,848 
Commercial2,680,706 50,060 67,110 384 2,798,260 
MW549,792 — 18,255 — 568,047 
Consumer9,064 80 91 10 9,245 
Total$9,278,403 $339,539 $154,796 $12,181 $9,784,919 
1 Within PCD loans, $4,089 are considered classified credits.
 December 31, 2023
 PassSpecial
Mention		SubstandardPCDTotal
(Dollars in thousands)
Real estate:
Construction and land$1,693,230 $34,231 $6,793 $— $1,734,254 
Farmland31,114 — — — 31,114 
1 - 4 family residential928,106 4,501 3,382 1,130 937,119 
Multi-family residential579,021 11,701 15,095 — 605,817 
OOCRE722,430 25,925 27,563 18,170 794,088 
NOOCRE2,066,080 182,531 88,030 14,084 2,350,725 
Commercial2,641,017 51,073 57,065 2,908 2,752,063 
MW377,796 — — — 377,796 
Consumer9,972 85 79 13 10,149 
Total$9,048,766 $310,047 $198,007 $36,305 $9,593,125 
 
ACL on LHI
We maintain an ACL that represents management’s best estimate of the credit losses and risks inherent in the loan portfolio. In determining the ACL, we estimate losses on specific loans, or groups of loans, where the probable loss can be identified and reasonably determined. The balance of the ACL is based on internally assigned risk classifications of loans, historical loan loss rates, changes in the nature of the loan portfolio, overall portfolio quality, industry concentrations, delinquency trends, current economic factors and the estimated impact of current economic conditions on certain historical loan loss rates.
66

The following table presents, as of and for the periods indicated, an analysis of the ACL and other related data:
 June 30, 2024March 31, 2024December 31, 2023
 Allocated Allowance% of Loan PortfolioACL to LoansAllocated Allowance% of Loan PortfolioACL to LoansAllocated Allowance% of Loan PortfolioACL to Loans
 
Construction and land$20,894 15.7 %1.36 %$19,781 16.2 %1.26 %$21,032 18.1 %1.21 %
Farmland99 0.3 0.32 107 0.3 0.35 101 0.3 0.32 
1 - 4 family residential9,181 9.4 1.00 11,516 10.0 1.19 9,539 9.8 1.02 
Multi-family residential5,754 7.7 0.77 6,339 7.7 0.84 4,882 6.3 0.81 
OOCRE13,100 8.2 1.62 9,802 8.1 1.24 10,252 8.3 1.29 
NOOCRE33,363 24.2 1.41 31,137 24.2 1.32 27,729 24.5 1.18 
Commercial29,561 28.6 1.06 32,791 28.8 1.18 35,886 28.7 1.30 
MW1,275 5.8 0.22 404 4.6 0.09 260 3.9 0.07 
Consumer204 0.1 2.21 155 0.1 1.75 135 0.1 1.33 
Total$113,431 100.0 %1.16 %$112,032 100.0 %1.15 %$109,816 100.0 %1.14 %

The ACL increased $3.6 million to $113.4 million as of June 30, 2024 from December 31, 2023. The increase in the ACL compared to December 31, 2023, was primarily attributable to changes in economic factors resulting in increases in both general and qualitative factor reserves.


67

(Dollars in thousands)Net (Charge-offs) RecoveriesAverage LoansAnnualized Net (Charge-off) Recoveries to Average Loans
Six Months Ended June 30, 2024
Construction and land$— $1,676,731 — %
Farmland— 31,408 — 
1 - 4 family residential(30)956,465 (0.01)
Multi-family residential(198)747,697 (0.05)
OOCRE— 778,105 — 
NOOCRE(6,262)2,282,277 (0.55)
Commercial(6,090)2,796,655 (0.44)
MW— 350,252 — 
Consumer445 8,991 9.95 
Total$(12,135)$9,628,581 (0.25)%
Six Months Ended June 30, 2023
Construction and land$— $1,888,850 — %
Farmland— 49,354 — 
1 - 4 family residential2 892,026 — 
Multi-family residential— 457,113 — 
OOCRE(116)684,394 (0.03)
NOOCRE(8,065)2,371,929 (0.69)
Commercial(4,121)2,861,925 (0.29)
MW— 366,000 — 
Consumer(102)8,151 (2.52)
Total$(12,402)$9,579,742 (0.26)%
Net charge-offs decreased $267 thousand, or 1 bps, to average loans annualized. Although we believe that we have established our ACL in accordance with GAAP and that the ACL was adequate to provide for known and inherent losses in the portfolio at all times shown above, future provisions will be subject to ongoing evaluations of the risks in our loan portfolio. If we experience economic declines or if asset quality deteriorates, material additional provisions could be required.
OBS Credit exposure
The ACL on off-balance-sheet credit exposures totaled $6.5 million and $8.0 million at June 30, 2024 and December 31, 2023, respectively. The level of the ACL on off-balance-sheet credit exposures depends upon the volume of outstanding commitments, underlying risk grades, the expected utilization of available funds and forecasted economic conditions impacting our loan portfolio.  
Equity Securities
As of June 30, 2024, we held equity securities with a readily determinable fair value of $9.8 million compared to $9.9 million as of December 31, 2023. These equity securities primarily represent investments in a publicly traded CRA fund and are subject to market pricing volatility, with changes in fair value recorded in earnings.

The Company held equity securities without a readily determinable fair values and measured at cost of $38.4 million at June 30, 2024, compared to $11.6 million at December 31, 2023. The Company measures equity securities that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer.




68

FHLB Stock and FRB Stock

As of June 30, 2024, we held FHLB stock and FRB stock of $53.1 million compared to $53.7 million as of December 31, 2023. The Bank is a member of its regional FRB and of the FHLB system. FHLB members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. Both FRB and FHLB stock are carried at cost, restricted for sale, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income.

Debt Securities
We use our debt securities portfolio to provide a source of liquidity, provide an appropriate return on funds invested, manage interest rate risk, meet collateral requirements and meet regulatory capital requirements. As of June 30, 2024, the carrying amount of debt securities totaled $1.35 billion, an increase of $92.3 million, or 7.3%, compared to $1.26 billion as of December 31, 2023. The increase was primarily due purchases of AFS debt securities of $415.6 million. The increase was partially offset by the sale of debt securities of $113.8 million at a loss of $6.3 million, an unrealized loss of $6.0 million and $198.0 million in paydowns. Debt securities represented 10.6% and 10.1% of total assets as of June 30, 2024 and December 31, 2023, respectively.
All of our MBS and CMOs are issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored entities. We do not hold any Fannie Mae or Freddie Mac preferred stock, corporate equity, collateralized debt obligations, structured investment vehicles, private label collateralized mortgage obligations, subprime, Alt-A, or second lien elements in our investment portfolio. As of June 30, 2024, our investment portfolio did not contain any securities that are directly backed by subprime or Alt-A mortgages.
 
Management evaluates AFS debt securities in unrealized loss positions to determine whether the impairment is due to credit-related factors or noncredit-related factors. Consideration is given to (1) the extent to which the fair value is less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value. The Company has 127 AFS debt securities that were in an unrealized loss position totaling $98.0 million as of June 30, 2024. The Company evaluated all debt securities and no ACL on debt securities was recognized in the Company’s consolidated balance sheets as of June 30, 2024. The Company recorded no ACL for its held to maturity debt securities as of June 30, 2024 and December 31, 2023, respectively.

    As of June 30, 2024 and December 31, 2023, we did not own securities of any one issuer other than U.S. government agency securities for which aggregate cost exceeded 10.0% of our stockholders’ equity as of such respective dates
Deposits

Total deposits as of June 30, 2024 were $10.72 billion, an increase of $386.6 million, or 3.7%, compared to $10.34 billion as of December 31, 2023. The increase from December 31, 2023 was primarily the result of increases of $552.9 million in certificates and other time deposits, $198.7 million in noninterest-bearing transactions and $4.0 million in correspondent money market deposits. The increase was partially offset by a decrease of $368.9 million in interest-bearing demand deposits.
June 30, 2024
Ending Balance% of TotalAverage
Outstanding Balance
Noninterest-bearing$2,416,727 22.5 %$2,346,908 
Interest-bearing transaction523,272 4.9 549,006 
Money market3,268,286 30.4 3,247,956 
Savings187,896 1.8 172,822 
   Certificates and other time deposits > $250k1,251,066 11.7 1,277,211 
   Certificates and other time deposits < $250k 2,493,530 23.3 2,313,824 
Correspondent money market accounts584,067 5.4 600,545 
Total deposits$10,724,844 100.0 %$10,508,272 
69

December 31, 2023
Ending Balance% of TotalAverage
Outstanding Balance
Noninterest-bearing$2,218,036 21.4 %$2,322,556 
Interest-bearing transaction927,193 9.0 851,375 
Money market3,284,324 31.8 3,061,472 
Savings136,868 1.3 115,519 
 Certificates and other time deposits > $250k1,312,032 12.7 1,240,834 
 Certificates and other time deposits < $250k1,879,705 18.2 2,044,330 
Correspondent money market accounts580,037 5.6 519,544 
Total deposits$10,338,195 100.0 %$10,155,630 
Borrowings
We utilize short- and long-term borrowings to supplement deposits to fund our lending and investment activities, each of which is discussed below.
FHLB Advances 
The FHLB allows us to borrow on a blanket floating lien status collateralized by certain securities and loans. As of June 30, 2024 and December 31, 2023, total available borrowing capacity of $2.19 billion, for both periods respectively, was available under this arrangement with no outstanding balance as of June 30, 2024 and an outstanding balance of $100.0 million as of December 31, 2023. The weighted average interest rate was 5.54% for the six months ended June 30, 2024 and 4.70% for the year ended December 31, 2023. The FHLB has also issued standby letters of credit to the Company for $1.31 billion and $1.38 billion as of June 30, 2024 and December 31, 2023, respectively. We had no other short-term borrowings at the dates indicated.
FRB  
The FRB has an available borrower in custody arrangement, which allows us to borrow on a collateralized basis. Certain commercial and consumer loans are pledged under this arrangement. We maintain this borrowing arrangement to meet liquidity needs pursuant to our contingency funding plan. The following table outlines the FRB availability:
Six Months Ended
June 30,December 31,
20242023
FRB loans pledged as collateral at period end$2,330,754 $2,143,269 
FRB securities pledged as collateral at period end933,849 328,919 
BTFP availability at period end(1)
— 455,361 
Total FRB availability$3,264,603 $2,927,549 
(1) There were no borrowings against the BTFP at the end of the respective periods.
Junior subordinated debentures and subordinated notes
The table below details our junior subordinated debentures and subordinated notes. Refer to Note 13 “Subordinated Debentures and Subordinated Notes” in our Annual Report on Form 10-K for the year ended December 31, 2023 for further discussion on the details of our junior subordinated debentures and subordinated notes.
70

June 30, 2024
BalanceRate
(Dollars in thousands)
Junior subordinated debentures
Parkway National Capital Trust I$3,093 7.45%
SovDallas Capital Trust I8,609 9.56
Patriot Bancshares Capital Trust I5,155 7.44
Patriot Bancshares Capital Trust II17,011 7.40
Subordinated notes
4.75% Fixed-to-Floating Rate Subordinated Notes75,000 4.75
4.125% Fixed-to-Floating Rate Subordinated Notes125,000 4.125

Liquidity and Capital Resources
Liquidity
Liquidity management involves our ability to raise funds to support asset growth and acquisitions or reduce assets to meet deposit withdrawals and other payment obligations, to maintain reserve requirements and otherwise to operate on an ongoing basis and manage unexpected events. For the six months ended June 30, 2024 and the year ended December 31, 2023, our liquidity needs were primarily met by core deposits, wholesale borrowings, security and loan maturities and amortizing investment and loan portfolios. Use of brokered deposits, purchased funds from correspondent banks and overnight advances from the FHLB and the FRB are available and have been utilized to take advantage of the cost of these funding sources.
We maintained five lines of credit with commercial banks that provide for extensions of credit with an availability to borrow up to an aggregate of $150.0 million as of June 30, 2024. We maintained five lines of credit with commercial banks that provide for extensions of credit with an availability to borrow up to an aggregate of $125.0 million as of December 31, 2023. There were no advances under these lines of credit outstanding as of June 30, 2024 and December 31, 2023.
71

The following table illustrates, during the periods presented, the mix of our funding sources and the average assets in which those funds are invested as a percentage of our average total assets for the period indicated. Average assets totaled $12.46 billion for the six months ended June 30, 2024 and $12.28 billion for the year ended December 31, 2023.
 For theFor the
 Six Months EndedYear Ended
 June 30, 2024December 31, 2023
Sources of Funds:
Deposits:
Noninterest-bearing18.9 %18.8 %
Interest-bearing37.0 34.2 
Certificates and other time deposits27.6 24.2 
Advances from FHLB0.8 7.1 
Other borrowings1.8 1.9 
Other liabilities1.5 1.6 
Stockholders’ equity12.3 12.2 
Total100.0 %100.0 %
Uses of Funds:
Loans76.7 %77.3 %
Debt Securities10.6 9.6 
Interest-bearing deposits in other banks4.6 1.0 
Other noninterest-earning assets8.1 12.1 
Total100.0 %100.0 %
Average noninterest-bearing deposits to average deposits22.6 %24.4 %
Average loans, excluding MW, to average deposits89.6 %97.5 %
Our primary source of funds is deposits, and our primary use of funds is loans. We do not expect a change in the primary source or use of our funds in the foreseeable future and believe that funds provided by such means will be sufficient to satisfy our anticipated cash requirements for the next twelve months and foreseeable future. Our average LHI increased 0.7% for the six months ended June 30, 2024, compared to the year ended December 31, 2023. We use excess deposits to pay down FHLB borrowings to reduce wholesale funding.
As of June 30, 2024, we had $2.79 billion in outstanding commitments to extend credit, $685.0 million in unconditionally cancellable MW commitments and $115.2 million in commitments associated with outstanding standby and commercial letters of credit. As of December 31, 2023, we had $3.08 billion in outstanding commitments to extend credit, $803.7 million in MW commitments and $111.6 million in commitments associated with outstanding standby and commercial letters of credit. Since commitments associated with letters of credit and commitments to extend credit may expire unused, the total outstanding may not necessarily reflect the actual future cash funding requirements.
As of June 30, 2024, we had cash and cash equivalents of $651.8 million compared to $629.1 million as of December 31, 2023.

72

Analysis of Cash Flows
 For the Six Months Ended
 June 30, 2024June 30, 2023
(In thousands)
Net cash provided by operating activities$85,560 $98,317 
Net cash used in investing activities(324,751)(108,270)
Net cash provided by financing activities261,965 237,797 
Net change in cash and cash equivalents$22,774 $227,844 
Cash Flows Provided by Operating Activities
    For the six months ended June 30, 2024, net cash provided by operating activities decreased by $12.8 million when compared to the same period in 2023. The decrease in cash provided by operating activities was primarily attributable to a a decrease of $20.8 million in net income.
Cash Flows Used in Investing Activities
    For the six months ended June 30, 2024, net cash used in investing activities increased by $216.5 million when compared to the same period in 2023. The increase in cash used in investing activities was primarily attributable to a $225.9 million increase in purchases of AFS debt securities and a $60.6 million decrease in proceeds from sale of government guaranteed loans. The increase was partially offset by a $53.6 million decrease in net loans originated and a $16.7 million decrease in purchases of other investments.
Cash Flows Provided by Financing Activities
    For the six months ended June 30, 2024, net cash provided by financing activities increased by $24.2 million when compared to the same period in 2023. The increase in cash provided by financing activities was primarily attributable to a $278.1 million increase in new deposits, partially offset by a $250.0 million decrease in advances from FHLB.
    As of the six months ended June 30, 2024 and 2023, we had no exposure to future cash requirements associated with known uncertainties or capital expenditures of a material nature.
Share Repurchases
On March 28, 2024, the Board authorized a stock buyback program (the "Stock Buyback Program") pursuant to which the Company could, from time to time, purchase up to $50,000 of its outstanding common stock in the aggregate. The Stock Buyback Program has an expiration date of March 31, 2025 and may be suspended, terminated, amended or modified by the Board at any time without prior notice at the Board’s discretion. The shares may be repurchased in the open market or in privately negotiated transactions from time to time, depending upon market conditions and other factors, and in accordance with applicable regulations of the SEC. The Stock Buyback Program does not obligate the Company to purchase any share and the program may be terminated or amended by the Board at any time prior to its expiration.

Shares repurchased through the periods indicated are as follows:

Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Numbers of shares repurchased175,688 — 175,688 — 
Weighted average price per share$19.90 $— $19.90 $— 
73

Capital Resources
Total stockholders’ equity increased to $1.55 billion as of June 30, 2024, compared to $1.53 billion as of December 31, 2023, an increase of $17.3 million, or 1.1%. The increase from December 31, 2023 to June 30, 2024 was primarily the result of $51.4 million of net income recognized and $6.1 million in stock-based compensation during the six months ended June 30, 2024. This increase was partially offset by $21.8 million in dividends declared and paid, $13.3 million in accumulated other comprehensive income, $3.5 million in stock buybacks and $1.6 million of RSUs vesting during the six months ended June 30, 2024.
By comparison, total stockholders’ equity increased to $1.49 billion as of June 30, 2023, compared to $1.45 billion as of December 31, 2022, an increase of $41.5 million, or 2.9%. The increase from December 31, 2022 to June 30, 2023 was primarily the result of $72.1 million of net income recognized, $6.1 million in stock-based compensation and a $765 thousand increase due to the exercise of employee stock options during the six months ended June 30, 2023. This increase was partially offset by $21.7 million in dividends declared and paid, $13.8 million in other comprehensive income and $2.0 million of RSUs vesting during the six months ended June 30, 2023.
Capital management consists of providing equity to support our current and future operations. Our regulators view capital levels as important indicators of an institution’s financial soundness. As a general matter, FDIC-insured depository institutions and their holding companies are required to maintain minimum capital relative to the amount and types of assets they hold. We are subject to regulatory capital requirements at the bank holding company and bank levels. See Note 11 – “Capital Requirements and Restrictions on Retained Earnings” in the notes to our consolidated financial statements for additional discussion regarding the regulatory capital requirements applicable to us and the Bank. As of June 30, 2024 and December 31, 2023, we and the Bank were in compliance with all applicable regulatory capital requirements, and the Bank was classified as “well capitalized” for purposes of the PCA regulations. As we employ our capital and continue to grow our operations, our regulatory capital levels may decrease depending on our level of earnings. However, we expect to monitor and control our growth in order to remain in compliance with all regulatory capital standards applicable to us.
The following table presents the actual capital amounts and regulatory capital ratios for us and the Bank as of the dates indicated.
 As of June 30,As of December 31,
 20242023
 AmountRatioAmountRatio
 (Dollars in thousands)
Veritex Holdings, Inc.
Total capital (to RWA)$1,540,440 13.45 %$1,500,703 13.18 %
Tier 1 capital (to RWA)1,230,782 10.75 1,202,252 10.56 
CET1 (to RWA)1,200,782 10.49 1,172,362 10.29 
Tier 1 capital (to average assets)1,230,782 10.06 1,202,252 10.03 
Veritex Community Bank
Total capital (to RWA)$1,462,157 12.81 %$1,467,960 12.90 %
Tier 1 capital (to RWA)1,351,766 11.85 1,368,384 12.03 
CET1 (to RWA)1,351,766 11.85 1,368,384 12.03 
Tier 1 capital (to average assets)1,351,766 11.09 1,368,384 11.43 
Contractual Obligations
In the ordinary course of the Company’s operations, we have entered into contractual obligations and have made other commitments to make future payments. Other than normal changes in the ordinary course of business and changes discussed within “Financial Condition—Borrowings,” there have been no significant changes in the types of contractual obligations or amounts due as of June 30, 2024 since December 31, 2023 as reported in our Annual Report on Form 10-K for the year ended December 31, 2023.

74

Non-GAAP Financial Measures
Our accounting and reporting policies conform to GAAP and the prevailing practices in the financial services industry. However, we also evaluate our performance by reference to certain additional financial measures discussed in this Quarterly Report on Form 10-Q that we identify 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 as in effect from time to time in the United States 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 or statistical measures calculated using exclusively either financial measures calculated in accordance with GAAP, operating measures or other measures that are not non-GAAP financial measures or both.
The non-GAAP financial measures that we discuss in this Quarterly Report on Form 10-Q 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 discuss in this Quarterly Report on Form 10-Q may differ from that of other companies reporting measures with similar names. You should understand how such other banking organizations calculate their financial measures similar or with names similar to the non-GAAP financial measures we have discussed in this Quarterly Report on Form 10-Q when comparing such non-GAAP financial measures.
Tangible Book Value Per Common Share. Tangible book value is a non-GAAP measure generally used by financial analysts and investment bankers to evaluate financial institutions. We calculate: (a) tangible common equity as total stockholders’ equity less goodwill and core deposit intangibles, net of accumulated amortization; and (b) tangible book value per common share as tangible common equity (as described in clause (a)) divided by number of common shares outstanding. For tangible book value per common share, the most directly comparable financial measure calculated in accordance with GAAP is book value per common share.
We believe that this measure is important to many investors in the marketplace who are interested in changes from period to period in book value per common share exclusive of changes in core deposit intangibles. Goodwill and other intangible assets have the effect of increasing total book value while not increasing our tangible book value.

The following table reconciles, as of the dates set forth below, total stockholders’ equity to tangible common equity and presents our tangible book value per common share compared with our book value per common share:
 As of
Jun 30, 2024Jun 30, 2023
(Dollars in thousands, except per share data)
Tangible Common Equity 
Total stockholders' equity$1,548,616 $1,491,280 
Adjustments:
Goodwill(404,452)(404,452)
Core deposit intangibles(23,619)(33,371)
Tangible common equity$1,120,545 $1,053,457 
Common shares outstanding54,350 54,261 
Book value per common share$28.49 $27.48 
Tangible book value per common share$20.62 $19.41 

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.

75

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

The following table reconciles, as of the dates set forth below, total stockholders’ equity to tangible common equity and total assets to tangible assets and presents our tangible common equity to tangible assets:
 As of
Jun 30, 2024Jun 30, 2023
(Dollars in thousands)
Tangible Common Equity 
Total stockholders' equity$1,548,616 $1,491,280 
Adjustments:
Goodwill(404,452)(404,452)
Core deposit intangibles(23,619)(33,371)
Tangible common equity$1,120,545 $1,053,457 
Tangible Assets
Total assets$12,684,330 $12,470,368 
Adjustments:
Goodwill(404,452)(404,452)
Core deposit intangibles(23,619)(33,371)
Tangible Assets$12,256,259 $12,032,545 
Tangible Common Equity to Tangible Assets9.14 %8.76 %

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:
76

 For the Quarter EndedFor the Six Months Ended
Jun 30, 2024Jun 30, 2023Jun 30, 2024Jun 30, 2023
Net income available for common stockholders adjusted for amortization of core deposit intangibles
Net income$27,202 $33,730 $51,358 $72,141 
Adjustments:
Plus: Amortization of core deposit intangibles2,438 2,438 4,876 4,876 
Less: Tax benefit at the statutory rate512 512 1,024 1,024 
Net income available for common stockholders adjusted for amortization of core deposit intangibles$29,128 $35,656 $55,210 $75,993 
Average Tangible Common Equity
Total average stockholders' equity$1,541,609 $1,510,625 $1,537,738 $1,493,695 
Adjustments:
Average goodwill(404,452)(404,452)(404,452)(404,452)
Average core deposit intangibles(25,218)(34,969)(26,437)(36,159)
Average tangible common equity$1,111,939 $1,071,204 $1,106,849 $1,053,084 
Return on Average Tangible Common Equity (Annualized)10.54 %13.35 %10.03 %14.55 %

Operating Earnings. 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, 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 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 earnings and related metrics:
 For the Quarter EndedFor the Six Months Ended
June 30, 2024Jun 30, 2023June 30, 2024Jun 30, 2023
Operating Earnings
Net income$27,202 $33,730 $51,358 $72,141 
Plus: Severance payments1
613 1,194 613 2,029 
Plus: Loss on sale of AFS securities, net— — 6,304 5,321 
Plus: FDIC special assessment134 — 134 — 
Operating pre-tax income27,949 34,924 58,409 79,491 
Less: Tax impact of adjustments166 251 1,489 1,544 
Plus: Nonrecurring tax adjustments527 — 527 — 
Operating earnings$28,310 $34,673 $57,447 $77,947 
Weighted average diluted shares outstanding54,823 54,486 54,832 54,546 
Diluted EPS$0.50 $0.62 $0.94 $1.32 
Diluted operating EPS$0.52 $0.64 $1.05 $1.43 
1 Severance payments relate to certain restructurings made during the periods disclosed.


Pre-tax, Pre-provision Operating Earnings. Pre-provision operating earnings is a non-GAAP measure generally used by financial analysts and investment bankers to evaluate financial institutions. We calculate pre-tax, pre-provision operating earnings as operating earnings as described in clause (a), plus provision for income taxes and plus provision (benefit) for credit losses.

77

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, pre-tax, pre-provision operating earnings and related metrics:

 For the Quarter EndedFor the Six Months Ended
Jun 30, 2024Jun 30, 2023Jun 30, 2024Jun 30, 2023
Pre-Tax, Pre-Provision Operating Earnings
Net income$27,202 $33,730 $51,358 $72,141 
Plus: Provision for income taxes8,221 9,725 15,458 20,737 
Plus: Provision for credit losses and unfunded commitments8,250 13,871 14,209 24,753 
Plus: Severance payments613 1,194 613 2,029 
Plus: Loss on sale of AFS securities, net— — 6,304 5,321 
Plus: FDIC special assessment134 — 134 — 
Pre-tax, pre-provision operating earnings$44,420 $58,520 $88,076 $124,981 

.

Critical Accounting Policies
    Our accounting policies are fundamental to understanding our management’s discussion and analysis of our results of operations and financial condition. We have identified certain significant accounting policies which involve a higher degree of judgment and complexity in making certain estimates and assumptions that affect amounts reported in our consolidated financial statements. The significant accounting policies which we believe to be the most critical in preparing our consolidated financial statements relate to ACL, business combinations, debt securities and goodwill. Since December 31, 2023, there have been no changes in critical accounting policies as described under “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies” in our Form 10-K for the year ended December 31, 2023, except for those updates discussed in Note 1 - Summary of Significant Accounting Policies in the accompanying notes to the consolidated financial statements included in this report.

Cautionary Notice Regarding Forward-Looking Statements
    This Quarterly Report on Form 10-Q 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 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 date of our quarterly cash dividend, impact of certain changes in our 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 our 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,” “seeks,” “projects,” “estimates,” “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. You should understand that the following important factors could affect our future results and cause actual results to differ materially from those expressed in the forward-looking statements:

•risks related to the concentration of our business in Texas, and specifically within the Dallas-Fort Worth metroplex and the Houston metropolitan area, including risks associated with any downturn in the real estate sector and risks associated with a decline in the values of single family homes in the Dallas-Fort Worth metroplex and the Houston metropolitan area;
78

•Uncertain market conditions and economic trends nationally, regionally and particularly in the Dallas-Fort Worth metroplex and Texas;
•the effects of regional or national civil unrest;
•the effects of war or other conflicts, including, but not limited to, the current conflicts between Russia and the Ukraine and Israel and Hamas, acts of terrorism, cyber attacks or other catastrophic events, including natural disasters such as storms, droughts, tornadoes, hurricanes and flooding, that may affect general economic conditions;
•changes in market interest rates that affect the pricing of our loans and deposits and our net interest income;
•risks related to our strategic focus on lending to small to medium-sized businesses;
•the sufficiency of the assumptions and estimates we make in establishing reserves for potential loan losses;
•our ability to implement our growth strategy, including identifying and consummating suitable acquisitions;
•our ability to recruit and retain successful bankers that meet our expectations in terms of customer relationships and profitability;
•changes in our accounting policies, standards and interpretations;
•our ability to retain executive officers and key employees and their customer and community relationships;
•risks associated with our CRE and construction loan portfolios, including the risks inherent in the valuation of the collateral securing such loans;
•risks associated with our commercial loan portfolio, including the risk of deterioration in value of the general business assets that generally secure such loans;
•our level of nonperforming assets and the costs associated with resolving problem loans, if any, and complying with government-imposed foreclosure moratoriums;
•potential changes in the prices, values and sales volumes of commercial and residential real estate securing our real estate loans;
•risks related to the significant amount of credit that we have extended to a limited number of borrowers and in a limited geographic area;
•Changes in the financial performance and/or condition of our borrowers;
•our ability to maintain adequate liquidity (including the effect of the transition to the CECL methodology for allowances and related adjustments) and to raise necessary capital to fund our acquisition strategy and operations or to meet increased minimum regulatory capital levels;
•potential fluctuations in the market value and liquidity of our debt securities;
•the effects of competition from a wide variety of local, regional, national and other providers of financial, investment and insurance services;
•our ability to maintain an effective system of disclosure controls and procedures and internal control over financial reporting;
•risks associated with fraudulent and negligent acts by our customers, employees or vendors;
•our ability to keep pace with technological change or difficulties when implementing new technologies;
•risks associated with difficulties and/or terminations with third-party service providers and the services they provide;
•risks associated with unauthorized access, cyber-crime and other threats to data security;
•potential impairment on the goodwill we have recorded or may record in connection with business acquisitions;
•our ability to comply with various governmental and regulatory requirements applicable to financial institutions;
•the impact of recent and future legislative and regulatory changes, including changes in banking, securities and tax laws and regulations and their application by our regulators, and economic stimulus programs;
•uncertainty regarding the future of LIBOR and any replacement alternatives on our business;
•changes in consumer spending, borrowing and saving habits;
•the potential impact of climate change;
•the impact of pandemics, epidemics and any other health-related crisis;
•the effects of changes in governmental monetary and fiscal policies and laws, including the policies of the Federal Reserve;
•our ability to comply with supervisory actions by federal and state banking agencies;
•changes in the scope and cost of FDIC, insurance and other coverage; and
79

•systemic risks associated with the soundness of other financial institutions.

Other factors not identified above, including those described under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our Annual Report on Form 10-K for the year ended December 31, 2023, may also cause actual results to differ materially from those described in our forward-looking statements. Most of these factors are difficult to anticipate and are generally beyond our control. Any forward-looking statement speaks only as of the date on which it is made. You should consider these factors in connection with considering any forward-looking statements that may be made by us. We undertake no obligation, and specifically decline any obligation to, publicly release any supplement, update or revision to any forward-looking statements, to report events or to report the occurrence of unanticipated events, whether as a result of new information, future developments or otherwise, unless we are required to do so by law.

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

    As a financial institution, our primary component of market risk is interest rate volatility. Our asset, liability and funds management policy provides management with the guidelines for effective funds management, and we have established a measurement system for monitoring our net interest rate sensitivity position. We manage our sensitivity position within our established guidelines.
    Fluctuations in interest rates will ultimately impact both the level of income and expense recorded on most of our assets and liabilities, and the market value of all interest-earning assets and interest-bearing liabilities, other than those which have a short term to maturity. Interest rate risk is the potential of economic losses due to future interest rate changes. These economic losses can be reflected as a loss of future net interest income and/or a loss of current fair market values. The objective is to measure the effect on net interest income and to adjust the balance sheet to minimize the inherent risk while at the same time maximizing income.
    We manage our exposure to interest rates by structuring our balance sheet in the ordinary course of business. With exception of our cash flow hedges designated as a hedging instrument, we do not enter into instruments such as leveraged derivatives, interest rate swaps, financial options, financial future contracts or forward delivery contracts for the purpose of reducing interest rate risk. We enter into interest rate swaps, caps and collars as an accommodation to our customers in connection with our interest rate swap program. Based upon the nature of our operations, we are not subject to foreign exchange or commodity price risk. We do not own any trading assets.
    Our exposure to interest rate risk is managed by the Asset-Liability Committee of the Bank in accordance with policies approved by its board of directors. The committee formulates strategies based on appropriate levels of interest rate risk. In determining the appropriate level of interest rate risk, the committee considers the impact on earnings and capital of the current outlook on interest rates, potential changes in interest rates, regional economies, liquidity, business strategies and other factors. The committee meets regularly to review, among other things, the sensitivity of assets and liabilities to interest rate changes, the book and market values of assets and liabilities, unrealized gains and losses, purchase and sale activities, commitments to originate loans and the maturities of investments and borrowings. Additionally, the committee reviews liquidity, cash flow flexibility, maturities of deposits and consumer and commercial deposit activity. Management employs methodologies to manage interest rate risk, which include an analysis of relationships between interest-earning assets and interest-bearing liabilities, and an interest rate shock simulation model.
We use an interest rate risk simulation model and shock analysis to test the interest rate sensitivity of net interest income and the balance sheet, respectively. Contractual maturities and repricing opportunities of loans are incorporated in the model as are prepayment assumptions, maturity data and call options within the investment portfolio.
We utilize static balance sheet rate shocks to estimate the potential impact on net interest income of changes in interest
rates under various rate scenarios. This analysis estimates a percentage of change in the metric from the stable rate base scenario versus alternative scenarios of rising and falling market interest rates by instantaneously shocking a static balance sheet.  Internal policy regarding internal rate risk simulations currently specifies that for instantaneous parallel shifts of the yield curve, estimated net income at risk for the subsequent one-year period should not decline by more than 5.0% for a 100 bps shift, 10.0% for a 200 bps shift, and 15.0% for a 300 bps shift.

80

    The following table summarizes the simulated change in net interest income and fair value of equity over a 12-month horizon as of the dates indicated:
 As of June 30, 2024As of December 31, 2023
 Percent ChangePercent ChangePercent ChangePercent Change
Change in Interestin Net Interestin Fair Valuein Net Interestin Fair Value
Rates (BPS)Incomeof EquityIncomeof Equity
+ 30011.33 %(6.40)%11.39 %(6.15)%
+ 2007.65 (3.42)7.70 (3.23)
+ 1003.93 (1.12)3.92 (1.05)
Base— — — — 
−100(4.58)(1.41)(4.16)(1.65)
−200(7.60)(3.67)(10.01)(6.48)
    The results are primarily due to behavior of demand, money market and savings deposits during such rate fluctuations. We have found that, historically, interest rates on these deposits change more slowly than changes in the discount and Federal Funds Rates. This assumption is incorporated into the simulation model and is generally not fully reflected in a gap analysis. The assumptions incorporated into the model are inherently uncertain and, as a result, the model cannot precisely measure future net interest income or precisely predict the impact of fluctuations in market interest rates on net interest income. Actual results will differ from the model’s simulated results due to timing, magnitude and frequency of interest rate changes as well as changes in market conditions and the application and timing of various strategies.
Item 4.  Controls and Procedures

Evaluation of disclosure controls and procedures — As of the end of the period covered by this report, the Company carried out an evaluation, under the supervision and with the participation of its management, including its CEO and CFO, of the effectiveness of the design and operation of its disclosure controls and procedures. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management was required to apply judgment in evaluating its controls and procedures. Based on this evaluation, the Company’s CEO and CFO concluded that the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) were effective as of the end of the period covered by this report.

There were no significant changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended June 30, 2024 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

81

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

We are from time to time subject to claims and litigation arising in the ordinary course of business. These claims and litigation may include, among other things, allegations of violation of banking and other applicable regulations, competition law, labor laws and consumer protection laws, as well as claims or litigation relating to intellectual property, securities, breach of contract and tort. We intend to defend ourselves vigorously against any pending or future claims and litigation.

At this time, in the opinion of management, the likelihood is remote that the impact of such proceedings, either individually or in the aggregate, would have a material adverse effect on our consolidated results of operations, financial condition or cash flows. However, one or more unfavorable outcomes in any claim or litigation against us could have a material adverse effect for the period in which they are resolved. In addition, regardless of their merits or their ultimate outcomes, such matters are costly, divert management’s attention and may materially adversely affect our reputation, even if resolved in our favor.

Item 1A.  Risk Factors

In evaluating an investment in our common stock, investors should consider carefully, among other things, the risk factors previously disclosed in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023, as well as the information contained in this Quarterly Report on Form 10-Q and our other reports and registration statements filed with the SEC.
    There has been no material change in the risk factors previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2023.

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds

On March 26, 2024, the Board authorized a stock buyback program (the “Stock Buyback Program”) pursuant to which the Company is authorized to purchase up to $50.0 million shares of the Company’s outstanding common stock. The Stock Buyback Program has an expiration date of March 31, 2025, and may be suspended, terminated, amended or modified by the Board at any time without prior notice at the Board’s discretion. Repurchases under the Stock Buyback Program may be made, from time to time, in amounts and at prices the Company deems appropriate. The Stock Buyback Program does not obligate the Company to purchase any shares of its common stock. Repurchases by the Company under the Stock Buyback Program will be subject to general market and economic conditions, applicable legal and regulatory requirements and other considerations. During the three months ended June 30, 2024, the Company repurchased shares of its common stock in the following amounts:

(a)(b)(c)(d)
PeriodTotal number of shares purchasedAverage price paid per shareTotal number of shares purchased as part of publicly announced plans or programsMaximum number (or approximate dollar value) of shares that may yet be purchased under the plans or programs
Beginning $ balance— $— — $50,000,000 
April 1, 2024 - April 30, 202425,000 19.92 25,000 49,502,036 
May 1, 2024 - May 31, 202452,374 20.13 52,374 48,447,547 
June 1, 2024 - June 30, 202498,314 19.78 98,314 46,502,964 
Quarterly totals and remaining $ balance available to repurchase175,688 $19.90 175,688 $46,502,964 
82

Item 6.  Exhibits
 
Exhibit
Number		    Description of Exhibit
2.3

3.2
 
31.1*
 
31.2*
 
32.1**
 
32.2**
 
101* 
The following materials from Veritex Holdings, Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, formatted in Inline XBRL (Inline eXtensible Business Reporting Language): (i) Cover Page, (ii) Consolidated Balance Sheets, (iii) Consolidated Statements of Income, (iv) Consolidated Statements of Comprehensive Income, (v) Consolidated Statements of Changes in Stockholders’ Equity, (vi) Consolidated Statements of Cash Flows, and (vii) Notes to Consolidated Financial Statements.
104Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
______________________________
* Filed with this Quarterly Report on Form 10-Q
** Furnished with this Quarterly Report on Form 10-Q
The agreements and other documents filed as exhibits to this report are not intended to provide factual information or other disclosure, other than with respect to the terms of the agreements or other documents themselves, and you should not rely on them for that purpose. In particular, any representations and warranties made by us in these agreements or other documents were made solely within the specific context of the relevant agreement or document and may not describe the actual state of affairs as of the date they were made or at any other time.
83


SIGNATURES

    Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
   
  VERITEX HOLDINGS, INC.
  (Registrant)
   
   
   
   
   
Date: August 2, 2024 /s/ C. Malcolm Holland, III
  C. Malcolm Holland, III
  Chairman and Chief Executive Officer
  (Principal Executive Officer)
   
   
   
   
Date: August 2, 2024 /s/ Terry S. Earley
  Terry S. Earley
  Chief Financial Officer
  (Principal Financial and Accounting Officer)
   
   
   

84

What is the market capitalization of a company?

The market capitalization sometimes referred as Marketcap, is the value of a publicly listed company.
In most cases it can be easily calculated by multiplying the share price with the amount of outstanding shares.

DISCLAIMER

CompaniesMarketCap is not associated in any way with CoinMarketCap.com
Stock prices are delayed, the delay can range from a few minutes to several hours.
Company logos are from the CompaniesLogo.com logo database and belong to their respective copyright holders. Companies Marketcap displays them for editorial purposes only.

Contact

For inquiries or if you want to report a problem write to hello@8marketcap.com

Links

- Privacy policy

- Terms and conditions

© 2025 CompaniesMarketcap.com