Financial Performance - Total interest and dividend income for the three months ended September 30, 2024, was $196,663,000, an increase of 5.8% from $187,115,000 in 2023[8] - Net interest income after provision for credit losses was $96,062,000 for the three months ended September 30, 2024, compared to $91,643,000 in 2023, reflecting a 4.4% increase[8] - Noninterest income totaled $13,106,000 for the three months ended September 30, 2024, up 35.5% from $9,674,000 in 2023[8] - Net income for the three months ended September 30, 2024, was $31,001,000, a decrease of 5% from $32,621,000 in 2023[10] - Basic EPS for the three months ended September 30, 2024, was $0.57, down from $0.60 in 2023[8] - The company reported a comprehensive income of $67,384,000 for the three months ended September 30, 2024, compared to $7,975,000 in 2023[10] - Net income for the nine months ended September 30, 2024, was $82,359,000, compared to $104,762,000 for the same period in 2023, reflecting a decrease of approximately 21.3%[18] Expenses and Provisions - Total noninterest expense increased to $70,100,000 for the three months ended September 30, 2024, from $59,414,000 in 2023, representing an 18% rise[8] - The provision for credit losses was $4,000,000 for the three months ended September 30, 2024, significantly lower than $8,627,000 in 2023[8] - The company experienced a provision for credit losses of $18,209,000 for the nine months ended September 30, 2024, down from $32,471,000 in 2023, indicating a decrease of approximately 44.0%[18] Assets and Equity - Total assets increased to $1,608,014,000 as of September 30, 2024, compared to $1,548,616,000 at the end of June 30, 2024[12] - Total stockholders' equity as of September 30, 2024, increased to $1,608,014,000 from $1,531,323,000 at December 31, 2023, representing a growth of about 5.0%[15] - Cash and cash equivalents at the end of the period were $1,100,790,000, up from $713,408,000 at the end of September 2023, indicating an increase of approximately 54.2%[18] Loan Portfolio and Credit Quality - The total loan held for investment (LHI) net as of September 30, 2024, was $9,542,063, an increase from $9,474,524 as of December 31, 2023[50] - Nonaccrual loans totaled $55,404 as of September 30, 2024, compared to $92,848 as of December 31, 2023, indicating a decrease in nonaccrual status[60] - Total loans 90 days past due and still accruing interest amounted to $65,273 million as of September 30, 2024, representing an increase from $39,357 million[62] - The company has modified loans totaling an amortized cost basis of $61,266 million to borrowers experiencing financial difficulty, with 2.4% of the NOOCRE loan class affected[68] Stock and Dividends - The company paid dividends totaling $32,680,000 in the nine months ended September 30, 2024, compared to $32,548,000 in the same period of 2023, reflecting a marginal increase[18] - Dividends paid by the Company during the three months ended September 30, 2024, amounted to $10,881, or $0.20 per outstanding share[154] Interest Rate Sensitivity - The company estimates that for a 100 bps shift in interest rates, net income at risk should not decline by more than 5.0% for the subsequent one-year period[294] - A 300 bps increase in interest rates is projected to result in a 10.27% increase in net interest income as of September 30, 2024[296] - A 200 bps increase in interest rates is expected to yield a 6.98% increase in net interest income as of September 30, 2024[296] - A 100 bps increase in interest rates is anticipated to lead to a 3.53% increase in net interest income as of September 30, 2024[296] Capital Ratios - The Company had total capital of $1,570,044, representing a capital ratio of 13.91% as of September 30, 2024, exceeding the required minimum of 8.0%[151] - The Bank's Tier 1 capital ratio was 12.33% as of September 30, 2024, above the required minimum of 6.0%[151] - The Company’s capital ratios as of September 30, 2024, exceeded those necessary to be categorized as "well capitalized"[149] Stock Compensation and Equity Plans - The company recognized no stock compensation expense related to the 2010 Incentive Plan for the three and nine months ended September 30, 2024, and 2023[120] - The company granted non-performance-based RSUs and PSUs under the 2022 Equity Plan during the nine months ending September 30, 2024, with annual graded vesting over a three-year period[122] - Stock compensation expense for the 2022 Equity Plan was $2,923,000 for the three months ended September 30, 2024, compared to $2,471,000 for the same period in 2023, representing a 18.2% increase[124]

Financial Data and Key Metrics Changes - The company reported operating earnings of $32.2 million or $0.59 per share, with pretax pre-provision earnings at $44.6 million or 1.38% [4] - Net interest margin (NIM) increased slightly, with CET1 capital now at 10.86% [4][9] - Deposits grew by $311 million or 11.6% annualized, indicating effective deposit gathering strategies [5] - Total capital grew approximately $132 million over the last six quarters, with a tangible book value per share increasing to $21.72, a 15.8% year-over-year increase [9] Business Line Data and Key Metrics Changes - Loan growth was impacted by large payoffs, resulting in a decrease of $126 million quarter-over-quarter [6] - Operating noninterest income increased by $2.5 million to $13.1 million, driven by higher treasury management fees and loan fees [17] - The company experienced a nominal charge-off of $269,000, with past dues remaining flat at 0.8% of total loans [7] Market Data and Key Metrics Changes - The loan-to-deposit ratio decreased from almost 95% a year ago to 88% as of September 30, 2024, with expectations to remain below 90% [10] - The average rate of time deposits is 5.14%, with $2.6 billion in ceding maturities over the next two quarters [11] - The company successfully reduced reliance on wholesale funding from 21% a year ago to 15.7% [12] Company Strategy and Development Direction - The company is focused on increasing profitability and efficiency, aiming to improve its return on average assets (ROAA) [4] - There is a strategic emphasis on disciplined loan growth and improving the credit risk profile [24] - The company is engaging a consulting firm to enhance operational processes and technology, aiming for improved efficiency [18][30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by election uncertainty affecting loan growth expectations, with a focus on building pipelines in commercial and industrial sectors [21][22] - The company is optimistic about its credit metrics and overall balance sheet strength, despite ongoing challenges [19] - Future NIM is expected to remain stable in the range of 3.25% to 3.30%, with a focus on managing deposit costs effectively [15][33] Other Important Information - The company has a fixed pay hedge of $250 million at 42 basis points, maturing in March 2025, which is expected to impact net interest margin positively [16][27] - The company is not currently interested in share buybacks at current valuation levels, focusing instead on building capital [51] Q&A Session Summary Question: Loan growth expectations and pipeline trends - Management indicated that while payoffs have been strong, the pipeline remains healthy, particularly in commercial and industrial sectors, but mid-single-digit growth expectations may be overly optimistic due to high payoffs [21][22] Question: Margin outlook for 2025 - Management expressed uncertainty about margin expansion in 2025, suggesting that maintaining margins will depend on effective pricing strategies and managing excess cash [33][34] Question: USDA revenue outlook - Management noted the unpredictability of USDA revenue, emphasizing efforts to cross-pollinate USDA and SBA loan production to stabilize revenue streams [35][36] Question: Expense trends - Management indicated that expenses may remain elevated due to incentive accruals and OREO-related costs, but some reductions are expected as certain expenses normalize [39] Question: Deposit pricing strategies - Management highlighted the importance of executing effective deposit pricing strategies to maintain growth and reduce reliance on high-cost funding sources [40][41] Question: Classified criticized loans outlook - Management expressed confidence in maintaining stability in the criticized loan category, with ongoing strategies in place to manage risk effectively [47][48]

Core Insights - Veritex Holdings (VBTX) reported revenue of $113.17 million for the quarter ended September 2024, reflecting a year-over-year increase of 3.8% [1] - Earnings per share (EPS) for the quarter was $0.59, slightly down from $0.60 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate by 3.11%, while the EPS surpassed the consensus estimate by 5.36% [1] Financial Performance Metrics - Efficiency Ratio (GAAP) was reported at 61.9%, higher than the average estimate of 57.1% from two analysts [1] - Net charge-offs to average loans outstanding were 0%, better than the average estimate of 0.3% [1] - Net Interest Margin stood at 3.3%, matching the average estimate from two analysts [1] - Total nonperforming loans (NPLs) were $58.27 million, exceeding the average estimate of $49.60 million [1] - Total nonperforming assets (NPAs) were $67.30 million, lower than the average estimate of $72.68 million [1] - Average Outstanding Balance of total interest-earning assets was $12.05 billion, above the average estimate of $11.83 billion [1] - Total Noninterest Income reached $13.11 million, surpassing the average estimate of $11.57 million [1] - Net Interest Income was reported at $100.06 million, exceeding the average estimate of $98.17 million [1] Stock Performance - Over the past month, shares of Veritex Holdings have returned +3.1%, outperforming the Zacks S&P 500 composite's +2.8% change [2] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [2]

Company Performance - Veritex Holdings (VBTX) reported quarterly earnings of $0.59 per share, exceeding the Zacks Consensus Estimate of $0.56 per share, but down from $0.60 per share a year ago, representing an earnings surprise of 5.36% [1] - The company posted revenues of $113.17 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 3.11% and up from $109.04 million year-over-year [1] - Over the last four quarters, Veritex Holdings has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [1] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.59 on revenues of $111.9 million, and for the current fiscal year, it is $2.13 on revenues of $431.05 million [4] - The estimate revisions trend for Veritex Holdings is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [4] Industry Context - The Banks - Southeast industry, to which Veritex Holdings belongs, is currently in the bottom 29% of over 250 Zacks industries, suggesting potential challenges for stocks in this sector [5] - Another company in the same industry, Seacoast Banking (SBCF), is expected to report quarterly earnings of $0.36 per share, reflecting a year-over-year decline of 2.7%, with revenues anticipated to be $128.57 million, down 6.2% from the previous year [5]

Exhibit 99.1 VERITEX HOLDINGS, INC. REPORTS THIRD QUARTER 2024 OPERATING RESULTS Dallas, TX — October 22, 2024 —Veritex Holdings, Inc. ("Veritex", the "Company", "we" or "our") (Nasdaq: VBTX), the holding company for Veritex Community Bank, today announced the results for the quarter ended September 30, 2024. "We are pleased to announce both our third quarter results and updates on our balance sheet transformation over the past 2 years," said C. Malcolm Holland, III, the Company's Chairman and Chief Executi ...

DALLAS, Oct. 22, 2024 (GLOBE NEWSWIRE) -- Veritex Holdings, Inc. (“Veritex”, the “Company”, “we” or “our”) (Nasdaq: VBTX), the holding company for Veritex Community Bank, today announced the results for the quarter ended September 30, 2024. “We are pleased to announce both our third quarter results and updates on our balance sheet transformation over the past 2 years,” said C. Malcolm Holland, III, the Company’s Chairman and Chief Executive Officer. “My team has remained focused on growing granular, attract ...

DALLAS, Oct. 07, 2024 (GLOBE NEWSWIRE) -- Veritex Holdings, Inc. (Nasdaq: VBTX) ("Veritex" or "the Company"), the parent holding company for Veritex Community Bank, today announced that it plans to release its third quarter 2024 results after the close of the market on Tuesday, October 22, 2024. The earnings release will be available on the Company's website, https://ir.veritexbank.com/. The Company will also host an investor conference call to review the results on Wednesday, October 23, 2024 at 8:30 a.m. ...

PONTE VEDRA, Fla., Sept. 09, 2024 (GLOBE NEWSWIRE) -- North Avenue Capital, a leader in innovative financing solutions for rural America, is making a significant addition to its lending products thereby extending its reach into urban and suburban communities. As of July 1, 2024, North Avenue Capital is now offering SBA 7(a) loans nationwide, doubling down on its government-guaranteed lending expertise while broadening its service to small businesses beyond rural America. For the past decade, North Avenue Ca ...

Veritex Holdings, Inc. (NASDAQ:VBTX) Q2 2024 Results Conference Call July 24, 2024 9:30 AM ET Company Participants Will Holford - Director of Strategic Corporate Development Malcolm Holland - Chairman and Chief Executive Officer Terry Earley - Chief Financial Officer Curtis Anderson - Executive Credit Officer Conference Call Participants Stephen Scouten - Piper Sandler Michael Rose - Raymond James Brett Rabatin - Hovde Group Ahmad Hasan - D.A. Davidson Operator Good morning, and welcome to the Veritex Holdi ...

Efficiency Ratio (GAAP): 59.1% versus the two-analyst average estimate of 58.2%. Net charge-offs to average loans outstanding: 0.3% versus 0.3% estimated by two analysts on average. Net Interest Margin: 3.3% compared to the 3.2% average estimate based on two analysts. Total nonperforming loans held for investment (NPLs): $58.75 million versus $85.54 million estimated by two analysts on average. Total nonperforming assets (NPAs): $83.01 million compared to the $95.29 million average estimate based on two ana ...