10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

☐ 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 class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $0.01	VBTX	Nasdaq 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 May 3, 2024, there were 54,525,408 outstanding shares of the registrant’s common stock, par value $0.01 per share.

VERITEX HOLDINGS, INC. AND SUBSIDIARIES

		Page
PART I — FINANCIAL INFORMATION
Glossary of Acronyms, Abbreviations, and Terms		2
Item 1.	Financial Statements – Unaudited	3
	Consolidated Balance Sheets	4
	Consolidated Statements of Income	5
	Consolidated Statements of Comprehensive Income (Loss)	6
	Consolidated Statements of Changes in Stockholders’ Equity	7
	Consolidated Statements of Cash Flows	9
	Notes to Consolidated Financial Statements	10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	42
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	61
Item 4.	Controls and Procedures	63
PART II — OTHER INFORMATION
Item 1.	Legal Proceedings	64
Item 1A.	Risk Factors	64
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	64
Item 6.	Exhibits	65
SIGNATURES		66

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."

ACL	Allowance for Credit Loss	Green	Green Bank
AFS	Available-For-Sale	HTM	Held-To-Maturity
AML	Anti-Money Laundering	IRA	Inflation Reduction Act of 2022
AMLA	Anti-Money Laundering Act of 2020	LHFS	Loans Held for Sale
AOCI	Accumulated Other Comprehensive Income	LHI	Loans Held for Investment
APIC	Additional Paid-In Capital	LIBOR	London Interbank Offered Rate
ASC	Accounting Standards Codification	Lower	Lower Holding Company
ASU	Accounting Standard Update	M&A	Mergers and acquisitions
BOLI	Bank-Owned Life Insurance	MBS	Mortgage-backed Securities
Board	Board of Directors of Veritex Holdings, Inc.	MW	Mortgage Warehouse
BTFP	Bank Term Funding Program	NAC	North Avenue Capital, LLC
CBLR	Community Bank Leverage Ratio	NOOCRE	Non-owner Occupied CRE
CD	Certificates of Deposit	NPV	Net Present Value
CECL	Current Expected Credit Losses	OBS	Off-Balance Sheet
CET1	Common Equity Tier 1	OOCRE	Owner Occupied CRE
CMO	Collateralized Mortgage Obligation	OREO	Other Real Estate Owned
CRA	Community Reinvestment Act	PCA	Prompt Corrective Action
CRE	Commercial Real Estate	PCD	Purchased Credit Deteriorated
DCF	Discounted Cash Flow	PSU	Performance-based Restricted stock units
DFW	Dallas-Fort Worth	RBC	Risk-Based Capital
DIF	Deposit Insurance Fund	RSU	Restricted stock units
EPS	Earnings Per Share	RWA	Risk-Weighted Assets
Exchange Act	Securities Exchange Act of 1934, as amended	Sarbanes-Oxley Act	Sarbanes-Oxley Act of 2002
FASB	Financial Accounting Standards Board	SBA	U. S. Small Business Administration
FDIC	Federal Deposit Insurance Corporation	SEC	Securities and Exchange Commission
Federal Reserve	The Federal Reserve System	SOFR	Secured Overnight Financing Rate
FHLB	Federal Home Loan Bank	TDB	Texas Department of Banking
FRB	Federal Reserve Bank of Dallas	Thrive	Thrive Mortgage, LLC
GAAP	Generally Accepted Accounting Principles in the United States of America	USDA	United States Department of Agriculture

3

PART I. FINANCIAL INFORMATION 

Item 1. Financial Statements

4

VERITEX HOLDINGS, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

as of March 31, 2024 and December 31, 2023

(Dollars in thousands, except par value and share information) 

	March 31,		December 31,
	2024		2023
	(Unaudited)
ASSETS
Cash and due from banks	$	41,884	$	58,914
Interest bearing deposits in other banks	698,885		570,149
Total cash and cash equivalents	740,769		629,063
Debt securities AFS, at fair value	1,166,268		1,076,639
Debt securities HTM (fair value of $155,741 and $160,021, at March 31, 2024 and December 31, 2023, respectively)	178,662		180,403
Equity securities	21,676		21,521
Investment in unconsolidated subsidiaries	1,018		1,018
FHLB Stock and FRB Stock	54,094		53,699
Total investments	1,421,718		1,333,280
LHFS	64,762		79,072
LHI, MW	449,531		377,796
LHI, excluding MW	9,249,551		9,206,544
Less: ACL	(112,032)		(109,816)
Total LHI, net	9,587,050		9,474,524
BOLI	85,359		84,833
Premises and equipment, net	105,299		105,727
OREO	18,445		—
Intangible assets, net of accumulated amortization	38,679		41,753
Goodwill	404,452		404,452
Other assets	241,863		241,633
Total assets	$	12,708,396	$	12,394,337
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Noninterest-bearing deposits	$	2,349,211	$	2,218,036
Interest-bearing transaction and savings deposits	4,220,114		4,348,385
Certificates and other time deposits	3,486,805		3,191,737
Correspondent money market deposits	597,690		580,037
Total deposits	10,653,820		10,338,195
Accounts payable and other liabilities	186,027		195,036
Advances from FHLB	100,000		100,000
Subordinated debentures and subordinated notes	230,034		229,783
Total liabilities	11,169,881		10,863,014
Stockholders’ equity:
Common stock, $0.01 par value:
Authorized shares - 75,000,000
Issued shares - 61,134,055 and 60,976,462 at March 31, 2024 and December 31, 2023, respectively	611		610
APIC	1,319,144		1,317,516
Retained earnings	457,499		444,242
AOCI	(71,157)		(63,463)
Treasury stock, 6,638,094 and 6,638,094 shares, at cost, at March 31, 2024 and December 31, 2023, respectively	(167,582)		(167,582)
Total stockholders’ equity	1,538,515		1,531,323
Total liabilities and stockholders’ equity	$	12,708,396	$	12,394,337

See accompanying Notes to Consolidated Financial Statements.

5

VERITEX HOLDINGS, INC. AND SUBSIDIARIES

Consolidated Statements of Income (Unaudited)

For the Three Months Ended March 31, 2024 and 2023

(Dollars in thousands, except per share amounts)

	Three Months Ended March 31,
	2024		2023
INTEREST AND DIVIDEND INCOME
Interest and fees on loans	$	161,942	$	151,707
Debt securities	13,695		10,988
Deposits in financial institutions and Federal Funds sold	8,050		5,534
Equity securities and other investments	900		1,408
Total interest and dividend income	184,587		169,637
INTEREST EXPENSE
Transaction and savings deposits	46,784		29,857
Certificates and other time deposits	40,492		20,967
Advances from FHLB	1,391		12,358
Subordinated debentures and subordinated notes	3,114		3,066
Total interest expense	91,781		66,248
NET INTEREST INCOME	92,806		103,389
Provision for credit losses	7,500		9,385
(Benefit) provision for credit losses on unfunded commitments	(1,541)		1,497
Net interest income after provision (benefit) for credit losses	86,847		92,507
NONINTEREST INCOME
Service charges and fees on deposit accounts	4,896		5,017
Loan fees	2,510		2,064
Loss on sales of debt securities	(6,304)		(5,321)
Government guaranteed loan income, net	2,614		9,688
Equity method investment loss	—		(1,521)
Customer swap income	408		217
Other	2,538		3,387
Total noninterest income	6,662		13,531
NONINTEREST EXPENSE
Salaries and employee benefits	33,365		31,865
Occupancy and equipment	4,677		4,973
Professional and regulatory fees	6,053		4,389
Data processing and software expense	4,856		4,720
Marketing	1,546		1,779
Amortization of intangibles	2,438		2,495
Telephone and communications	261		478
Other	8,920		5,916
Total noninterest expense	62,116		56,615
Income before income tax expense	31,393		49,423
Income tax expense	7,237		11,012
NET INCOME	$	24,156	$	38,411
Basic EPS	$	0.44	$	0.71
Diluted EPS	$	0.44	$	0.70

See accompanying Notes to Consolidated Financial Statements.

6

VERITEX HOLDINGS, INC. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income (Loss) (Unaudited)

For the Three Months Ended March 31, 2024 and 2023

(Dollars in thousands)

	Three Months Ended March 31,
	2024		2023
NET INCOME	$	24,156	$	38,411
OTHER COMPREHENSIVE INCOME
Net unrealized (losses) gains on debt securities AFS:
Change in net unrealized (losses) gains on debt securities AFS during the period, net	(10,421)		2,547
Amortization from transfer of debt securities from AFS to HTM	2,925		3,622
Reclassification adjustment for net losses included in net income	6,304		5,321
Net unrealized (losses) gains on debt securities AFS	(1,192)		11,490
Net unrealized (losses) gains on derivative instruments designated as cash flow hedges	(8,495)		7,078
Other comprehensive (loss) income, before tax	(9,687)		18,568
Income tax (benefit) expense	(1,993)		3,673
Other comprehensive (loss) income, net of tax	(7,694)		14,895
COMPREHENSIVE INCOME	$	16,462	$	53,306

See accompanying Notes to Consolidated Financial Statements.

7

VERITEX HOLDINGS, INC. AND SUBSIDIARIES

Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) 

For the Three Months Ended March 31, 2024 and 2023

(Dollars in thousands, except share data)

Three Months Ended March 31, 2024
	Common Stock			Treasury Stock			APIC		Retained Earnings		AOCI		Total
	Shares	Amount		Shares	Amount
Balance at December 31, 2023	54,338,368	$	610	6,638,094	$	(167,582)	$	1,317,516	$	444,242	$	(63,463)	$	1,531,323
RSU vested, net of 69,034 shares withheld to cover taxes	157,593	1		—	—		(1,261)		—		—		(1,260)
Stock based compensation	—	—		—	—		2,889		—				2,889
Net income	—	—		—	—		—		24,156		—		24,156
Dividends paid	—	—		—	—		—		(10,899)		—		(10,899)
Other comprehensive loss	—	—		—	—		—		—		(7,694)		(7,694)
Balance at March 31, 2024	54,495,961	$	611	6,638,094	$	(167,582)	$	1,319,144	$	457,499	$	(71,157)	$	1,538,515

Three Months Ended March 31, 2023
	Common Stock			Treasury Stock			APIC		Retained Earnings		AOCI
	Shares	Amount		Shares	Amount								Total
Balance at December 31, 2022	54,029,955	$	607	6,638,094	$	(167,582)	$	1,306,852	$	379,299	$	(69,403)	$	1,449,773
RSUs vested, net of 71,465 shares withheld to cover taxes	161,081	2		—	—		(1,928)		—		—		(1,926)
Exercise of employee stock options, net of 121 and 9,729 shares withheld to cover taxes and exercise, respectively	37,997	—		—	—		534		—		—		534
Stock based compensation	—	—		—	—		2,887		—		—		2,887
Net income	—	—		—	—		—		38,411		—		38,411
Dividends paid	—	—		—	—		—		(10,837)		—		(10,837)
Other comprehensive loss	—	—		—	—		—		—		14,895		14,895
Balance at March 31, 2023	54,229,033	$	609	6,638,094	$	(167,582)	$	1,308,345	$	406,873	$	(54,508)	$	1,493,737

See accompanying Notes to Consolidated Financial Statements.

8

VERITEX HOLDINGS, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows (Unaudited)

For the Three Months Ended March 31, 2024 and 2023

(Dollars in thousands)

	For the Three Months Ended March 31,
	2024		2023
Cash flows from operating activities:
Net income	$	24,156	$	38,411
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of fixed assets and intangibles	5,127		4,764
Net (accretion) amortization of time deposit premium, debt discount and debt issuance costs	(843)		240
Provision for credit losses and unfunded commitments	5,959		10,882
Accretion of loan discount	(422)		(1,014)
Stock-based compensation expense	2,889		2,887
Excess tax expense from stock compensation	384		112
Net amortization of premiums on debt securities	1,191		885
Unrealized loss (gain) on equity securities recognized in earnings	105		(126)
Change in cash surrender value and mortality rates of BOLI	(526)		(466)
Loss on sales of debt securities	6,304		5,321
Change in fair value of government guaranteed loans using fair value option	49		(2,239)
Gain on sales of mortgage LHFS	(10)		(6)
Gain on sales of government guaranteed loans	(3,211)		(7,449)
Servicing asset recoveries, net	(222)		(424)
Originations of LHFS	(7,842)		(25,136)
Proceeds from sales of LHFS	24,148		5,520
Equity method investment loss	—		1,521
Decrease (increase) in other assets	4,845		(3,119)
(Decrease) increase in accounts payable and other liabilities	(17,812)		3,975
Net cash provided by operating activities	44,269		34,539
Cash flows from investing activities:
Purchases of AFS debt securities	(229,936)		(149,982)
Proceeds from sales of AFS debt securities	113,794		109,793
Proceeds from maturities, calls and pay downs of AFS debt securities	18,201		175,289
Maturity, calls and paydowns of HTM debt securities	1,366		800
Purchases of other investments	(655)		(15,045)
Net loans originated	(153,534)		(134,513)
Proceeds from sale of government guaranteed loans	14,409		(52,868)
Net (disposals) additions to premises and equipment	(768)		18
Net cash used in investing activities	(237,123)		(66,508)
Cash flows from financing activities:
Net increase (decrease) in deposits	316,719		(88,484)
Net increase in advances from FHLB	—		505,000
Payments to tax authorities for stock-based compensation	(1,260)		(1,926)
Proceeds from exercise of employee stock options	—		534
Dividends paid	(10,899)		(10,837)
Net cash provided by financing activities	304,560		404,287
Net increase in cash and cash equivalents	111,706		372,318
Cash and cash equivalents at beginning of period	629,063		436,077
Cash and cash equivalents at end of period	$	740,769	$	808,395

See accompanying Notes to Consolidated Financial Statements.

9

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. As of this filing, one branch in the Dallas-Fort Worth metroplex was opened after first quarter end 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 March 31, 2024 and December 31, 2023, consolidated statements of income, consolidated statements of comprehensive income (loss) and consolidated changes in stockholders’ equity for the three months ended March 31, 2024 and 2023 and consolidated statements of cash flows for the three months ended March 31, 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.

10

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 months ended March 31, 2024 and 2023:

	Three Months Ended March 31,
	2024		2023
Numerator:
Net income	$	24,156	$	38,411
Denominator:
Weighted average shares outstanding for basic EPS	54,444		54,149
Dilutive effect of employee stock-based awards	398		457
Adjusted weighted average shares outstanding	54,842		54,606
EPS:
Basic	$	0.44	$	0.71
Diluted	$	0.44	$	0.70
Antidilutive shares	1,127		834

For the three months ended March 31, 2024, there were 1,127 antidilutive shares excluded from the diluted EPS weighted average shares outstanding, 514 relating to RSUs and 613 relating to stock options.

For the three months ended March 31, 2023, there were 834 antidilutive shares excluded from the diluted EPS weighted average shares outstanding, 440 related to RSUs and 214 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 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.

11

2. Supplemental Statement of Cash Flows

Other supplemental cash flow information is presented below:

	Three Months Ended March 31,
	2024		2023
	(in thousands)
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest	$	98,354	$	54,189
Cash paid for income taxes	—		—

3. Securities

Equity Securities With a Readily Determinable Fair Value

The Company held equity securities with a fair value of $9,792 and $9,897 at March 31, 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 months ended March 31, 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 March 31,
	2024		2023
Unrealized (loss) gain recognized on equity securities with a readily determinable fair value	$	(105)	$	126

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 $38,194 and $11,624 as of March 31, 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 months ended March 31, 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:

12

	March 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		ACL		Fair Value
AFS
Corporate bonds	$	262,526	$	1,198	$	26,431	$	—	$	237,293
Municipal securities	14,272		—		3,357		—		10,915
MBS	199,632		3,361		14,686		—		188,307
CMO	574,622		3,520		47,263		—		530,879
Asset-backed securities	122,078		732		2,549		—		120,261
Collateralized loan obligations	78,672		14		73		—		78,613
	$	1,251,802	$	8,825	$	94,359	$	—	$	1,166,268
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		ACL		Fair Value
HTM
MBS	$	33,154	$	—	$	6,719	$	—	$	26,435
CMO	33,586		—		4,927		—		28,659
Municipal securities	111,922		7		11,282		—		100,647
	$	178,662	$	7	$	22,928	$	—	$	155,741

	December 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		ACL		Fair Value
AFS
Corporate bonds	$	244,652	$	1,034	$	29,566	$	—	$	216,120
Municipal securities	46,631		108		3,258		—		43,481
MBS	194,486		4,430		13,465		—		185,451
CMO	563,421		4,634		46,999		—		521,056
Asset-backed securities	47,738		1,045		2,130		—		46,653
Collateralized loan obligations	64,250		—		372		—		63,878
	$	1,161,178	$	11,251	$	95,790	$	—	$	1,076,639
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		ACL		Fair Value
HTM
MBS	$	33,716	$	—	$	6,037	$	—	$	27,679
CMO	34,483		—		4,567		—		29,916
Municipal securities	112,204		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 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 $2,925 and $3,122 at March 31, 2024 and December 31, 2023, respectively.

13

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:

	March 31, 2024
	Less Than 12 Months				12 Months or More				Totals
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
AFS
Corporate bonds	$	53,376	$	5,297	$	164,604	$	21,134	$	217,980	$	26,431
Municipal securities	10,915		3,357		—		—		10,915		3,357
MBS	—		—		87,805		14,686		87,805		14,686
CMO	61,680		1,066		339,830		46,197		401,510		47,263
Asset-backed securities	64,037		1,999		6,250		550		70,287		2,549
Collateralized loan obligations	—		—		33,177		73		33,177		73
	$	190,008	$	11,719	$	631,666	$	82,640	$	821,674	$	94,359
HTM
MBS	$	—	$	—	$	26,435	$	6,719	$	26,435	$	6,719
CMO	—		—		28,659		4,927		28,659		4,927
Municipal securities	100,109		11,275		—		—		100,109		11,275
	$	100,109	$	11,275	$	55,094	$	11,646	$	155,203	$	22,921

	December 31, 2023
	Less Than 12 Months				12 Months or More				Totals
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
AFS
Corporate bonds	$	34,989	$	5,970	$	162,148	$	23,596	$	197,137	$	29,566
Municipal securities	6,792		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 securities	9,011		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 securities	7,845		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 133 and 142 at March 31, 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

14

decline. Accordingly, as of March 31, 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.

The following table presents the activity in the ACL for AFS debt securities:

	Three Months ended March 31,
	2024		2023
ACL:
Beginning balance	$	—	$	—
Credit loss expense	—		885
ACL 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.

	March 31, 2024
	AFS				HTM
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	2,010	$	1,977	$	3,977	$	3,963
Due from one year to five years	45,060		45,423		447		443
Due from five years to ten years	199,462		177,121		20,060		19,570
Due after ten years	30,266		23,687		87,438		76,671
	276,798		248,208		111,922		100,647
MBS and CMO	774,254		719,186		66,740		55,094
Asset-backed securities	122,078		120,261		—		—
Collateralized loan obligations	78,672		78,613		—		—
	$	1,251,802	$	1,166,268	$	178,662	$	155,741

	December 31, 2023
	AFS				HTM
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	2,018	$	1,906	$	—	$	—
Due from one year to five years	46,645		46,682		4,445		4,448
Due from five years to ten years	188,526		163,397		12,806		12,628
Due after ten years	54,094		47,616		94,953		85,350
	291,283		259,601		112,204		102,426
MBS and CMO	757,907		706,507		68,199		57,595
Asset-backed securities	47,738		46,653		—		—
Collateralized loan obligations	64,250		63,878		—		—
	$	1,161,178	$	1,076,639	$	180,403	$	160,021

15

Proceeds from sales of debt securities AFS and gross gains and losses for the three months ended March 31, 2024 and 2023 were as follows:

	Three Months Ended March 31,
	2024		2023
Proceeds from sales	$	113,794	$	109,793
Gross realized losses	6,304		5,321

As of March 31, 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 March 31, 2024 and December 31, 2023.

16

4. LHI and ACL

LHI in the accompanying consolidated balance sheets are summarized as follows:

	March 31, 2024		December 31, 2023
LHI, carried at amortized cost:
Real estate:
Construction and land	$	1,568,257	$	1,734,254
Farmland	30,979		31,114
1 - 4 family residential	969,401		937,119
Multi-family residential	751,607		605,817
OOCRE	788,376		794,088
NOOCRE	2,352,993		2,350,725
Commercial	2,785,987		2,752,063
MW	449,531		377,796
Consumer	8,882		10,149
	$	9,706,013	$	9,593,125
Deferred loan fees, net	(6,931)		(8,785)
ACL	(112,032)		(109,816)
Total LHI, net	$	9,587,050	$	9,474,524

Included in the total LHI, net, as of March 31, 2024 and December 31, 2023 was an accretable discount related to purchased performing and PCD loans acquired in the approximate amounts of $5,084 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 March 31, 2024 and December 31, 2023 is a discount on retained loans from sale of originated SBA and USDA loans of $8,512 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 $160,695 as of March 31, 2024. The remaining net purchase discount of $3,005 and $3,231 related to these 1-4 family residential loans purchased is included in the total LHI, net, as of March 31, 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:

17

	Three Months Ended March 31, 2024
	Construction and Land		Farmland		Residential		Multifamily		OOCRE		NOOCRE		Commercial		MW		Consumer		Total
Balance at beginning of the period	$	21,032	$	101	$	9,539	$	4,882	$	10,252	$	27,729	$	35,886	$	260	$	135	$	109,816
Credit loss expense non-PCD loans	(1,251)		6		1,978		1,457		47		11,653		(2,136)		144		42		11,940
Credit (benefit) loss expense PCD loans	—		—		(2)		—		(377)		(3,952)		(109)		—		—		(4,440)
Charge-offs	—		—		—		—		(120)		(4,293)		(946)		—		(71)		(5,430)
Recoveries	—		—		1		—		—		—		96		—		49		146
Ending Balance	$	19,781	$	107	$	11,516	$	6,339	$	9,802	$	31,137	$	32,791	$	404	$	155	$	112,032

	Three Months Ended March 31, 2023
	Construction and Land		Farmland		Residential		Multifamily		OOCRE		NOOCRE		Commercial		Consumer		Total
Balance at beginning of the period	$	13,120	$	127	$	9,533	$	2,607	$	8,707	$	26,704	$	30,142	$	112	$	91,052
Credit loss (benefit) expense non-PCD loans	4,240		41		12		877		238		(499)		2,995		363		8,267
Credit (benefit) loss expense PCD loans	(46)		—		(5)		—		(16)		33		267		—		233
Charge-offs	—		—		—		—		(116)		—		(1,051)		(62)		(1,229)
Recoveries	—		—		1		—		—		—		364		6		371
Ending Balance	$	17,314	$	168	$	9,541	$	3,484	$	8,813	$	26,238	$	32,717	$	419	$	98,694

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:

	March 31, 2024				December 31, 2023
	Real Property(1)		ACL Allocation		Real Property(1)		ACL Allocation
Construction and land	$	159	$	7	$	—	$	—
1 - 4 family residential	530		44		—		—
OOCRE	9,357		—		3,059		47
NOOCRE	9,344		—		21,169		—
Commercial	18,379		2,906		20,711		3,339
Total	$	37,769	$	2,957	$	44,939	$	3,386

(1) Loans reported exclude PCD loans that transitioned upon adoption of ASC 326 and accounted for on a pooled basis.

18

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.

Nonaccrual loans aggregated by class of loans, as of March 31, 2024 and December 31, 2023, were as follows:

	March 31, 2024				December 31, 2023
	Nonaccrual		Nonaccrual With No ACL		Nonaccrual		Nonaccrual With No ACL
Construction and land	$	6,737	$	6,619	$	6,793	$	6,793
1 - 4 family residential	3,263		3,058		1,965		1,965
OOCRE	15,126		15,126		9,719		9,493
NOOCRE	22,366		11,866		33,479		33,479
Commercial	37,627		10,086		40,868		10,610
Consumer	21		21		24		24
Total	$	85,140	$	46,776	$	92,848	$	62,364

    There were $9,419 and $13,715 of PCD loans that are not accounted for on a pooled basis included in nonaccrual loans at March 31, 2024 and December 31, 2023, respectively.

    During the three months ended March 31, 2024 and 2023, interest income not recognized on nonaccrual loans was $781 and 772, respectively.

An age analysis of past due loans, aggregated by class of loans and including past due nonaccrual loans, as of March 31, 2024 and December 31, 2023, is as follows:

	March 31, 2024
	30 to 59 Days		60 to 89 Days		90 Days or Greater		Total Past Due		Total Current		Total Loans		Total 90 Days Past Due and Still Accruing
Real estate:
Construction and land	$	13,150	$	59	$	6,678	$	19,887	$	1,548,370	$	1,568,257	$	—
Farmland	—		—		—		—		30,979		30,979		—
1 - 4 family residential	2,352		459		2,159		4,970		964,431		969,401		—
Multi-family residential	—		—		—		—		751,607		751,607		—
OOCRE	1,826		—		15,346		17,172		771,204		788,376		220
NOOCRE	10,605		2,847		12,658		26,110		2,326,883		2,352,993		—
Commercial	427		3,075		9,963		13,465		2,772,522		2,785,987		—
MW	—		—		—		—		449,531		449,531		—
Consumer	11		—		—		11		8,871		8,882		—
Total	$	28,371	$	6,440	$	46,804	$	81,615	$	9,624,398	$	9,706,013	$	220

19

	December 31, 2023
	30 to 59 Days		60 to 89 Days		90 Days or Greater		Total Past Due		Total Current		Total 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 residential	4,359		2,535		3,691		10,585		926,534		937,119		1,726
Multi-family residential	15,095		—		—		15,095		590,722		605,817		—
OOCRE	916		114		10,185		11,215		782,873		794,088		466
NOOCRE	3,182		642		20,547		24,371		2,326,354		2,350,725		783
Commercial	3,485		1,394		9,122		14,001		2,738,062		2,752,063		—
MW	—		—		—		—		377,796		377,796		—
Consumer	76		—		—		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 three months ended March 31, 2024:

Loan Modifications Made to Borrowers Experiencing Financial Difficulty
	Interest Rate Reduction				Financial Impact
	Amortized Cost Basis		% of Loan Class
NOOCRE	$	28,441	1.2	%	Interest rate reduced longer than 3 months

	Term Extension
	Amortized Cost Basis		% of Loan Class		Financial Impact
Construction and land	$	2,000	0.1	%	Principal and interest payments deferred longer than three months

20

	Combination - Interest Rate Reduction and Term Extension
	Amortized Cost Basis		% of Loan Class		Financial Impact
NOOCRE	$	45,762	1.9	%	Principal payments deferred and interest rate reduced longer than three months
Commercial	6,336		0.2	%	Principal payments deferred and interest rate reduced longer than three months
	$	52,098

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
	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due
Construction and land	$	—	$	2,000	$	—	$	—
NOOCRE	84,190		9,343		—		—
Commercial	27,764		—		—		2,108
Total	$	111,954	$	11,343	$	—	$	2,108

The Company has not committed to lend additional amounts to customers with outstanding loans classified as Troubled Loan Modifications as of March 31, 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.

    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.

21

    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
	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
As of March 31, 2024
Construction and land:
Pass	$	32,907	$	100,050	$	788,951	$	372,550	$	34,954	$	6,324	$	205,423	$	—	$	1,541,159
Special mention	—		12,112		2,000		4,968		—		—		1,281		—		20,361
Substandard	—		—		6,706		—		31		—		—		—		6,737
Total construction and land	$	32,907	$	112,162	$	797,657	$	377,518	$	34,985	$	6,324	$	206,704	$	—	$	1,568,257
Construction and land gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Farmland:
Pass	$	132	$	2,517	$	4,372	$	—	$	17,863	$	4,927	$	1,168	$	—	$	30,979
Total farmland	$	132	$	2,517	$	4,372	$	—	$	17,863	$	4,927	$	1,168	$	—	$	30,979
Farmland gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
1 - 4 family residential:
Pass	$	18,518	$	77,907	$	139,311	$	209,626	$	82,714	$	288,540	$	114,455	$	17,236	$	948,307
Special mention	—		3,722		—		—		—		1,227		—		—		4,949
Substandard	—		—		861		852		50		12,739		529		—		15,031
PCD	—		—		—		—		—		1,114		—		—		1,114
Total 1 - 4 family residential	$	18,518	$	81,629	$	140,172	$	210,478	$	82,764	$	303,620	$	114,984	$	17,236	$	969,401
1-4 family residential gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Multi-family residential:
Pass	$	—	$	11,788	$	104,244	$	338,897	$	264,985	$	21,038	$	10,655	$	—	$	751,607
Total multi-family residential	$	—	$	11,788	$	104,244	$	338,897	$	264,985	$	21,038	$	10,655	$	—	$	751,607
Multi-family residential gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
OOCRE:
Pass	$	14,365	$	141,955	$	176,643	$	100,173	$	89,496	$	201,542	$	4,623	$	—	$	728,797
Special mention	—		5,446		468		4,030		1,405		15,926		210		—		27,485
Substandard	—		—		9,357		2,963		2,945		6,261		—		—		21,526
PCD	—		—		—		—		—		10,568		—		—		10,568
Total OOCRE	$	14,365	$	147,401	$	186,468	$	107,166	$	93,846	$	234,297	$	4,833	$	—	$	788,376
OOCRE gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	120	$	—	$	—	$	120
NOOCRE:
Pass	$	17,713	$	50,026	$	667,589	$	546,455	$	239,974	$	497,749	$	33,047	$	571	$	2,053,124
Special mention	—		—		57,088		27,217		28,614		135,930		—		—		248,849
Substandard	—		—		3,858		3,241		303		33,834		—		—		41,236
PCD	—		—		—		—		—		9,784		—		—		9,784
Total NOOCRE	$	17,713	$	50,026	$	728,535	$	576,913	$	268,891	$	677,297	$	33,047	$	571	$	2,352,993

22

NOOCRE gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	4,293	$	—	$	—	$	4,293
Commercial:
Pass	$	80,714	$	271,814	$	336,946	$	74,917	$	39,435	$	83,231	$	1,772,806	$	1,151	$	2,661,014
Special mention	—		2,544		13,057		12,221		75		6,008		14,184		25		48,114
Substandard	—		695		16,431		9,990		1,009		15,593		32,721		—		76,439
PCD	—		—		—		—		—		420		—		—		420
Total commercial	$	80,714	$	275,053	$	366,434	$	97,128	$	40,519	$	105,252	$	1,819,711	$	1,176	$	2,785,987
Commercial gross charge-offs	$	—	$	—	$	43	$	—	$	—	$	903	$	—	$	—	$	946
MW:
Pass	$	144	$	1,592	$	—	$	—	$	—	$	—	$	447,795	$	—	$	449,531
Total MW	$	144	$	1,592	$	—	$	—	$	—	$	—	$	447,795	$	—	$	449,531
MW gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Consumer:
Pass	$	604	$	3,141	$	866	$	251	$	552	$	1,678	$	1,628	$	—	$	8,720
Special mention	—		—		—		—		—		82		—		—		82
Substandard	—		—		2		—		—		67		—		—		69
PCD	—		—		—		—		—		11		—		—		11
Total consumer	$	604	$	3,141	$	868	$	251	$	552	$	1,838	$	1,628	$	—	$	8,882
Consumer gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	71	$	—	$	—	$	71
Total Pass	$	165,097	$	660,790	$	2,218,922	$	1,642,869	$	769,973	$	1,105,029	$	2,591,600	$	18,958	$	9,173,238
Total Special Mention	—		23,824		72,613		48,436		30,094		159,173		15,675		25		349,840
Total Substandard	—		695		37,215		17,046		4,338		68,494		33,250		—		161,038
Total PCD	—		—		—		—		—		21,897		—		—		21,897
Total	$	165,097	$	685,309	$	2,328,750	$	1,708,351	$	804,405	$	1,354,593	$	2,640,525	$	18,983	$	9,706,013
Current period gross charge-offs	$	—	$	—	$	43	$	—	$	—	$	5,387	$	—	$	—	$	5,430

1 Term loans amortized cost basis by origination year excludes $6,931 of deferred loan fees, net.

	Term Loans Amortized Cost Basis by Origination Year1
	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
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 mention	593		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	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
1 - 4 family residential:
Pass	$	73,289	$	140,824	$	193,914	$	79,767	$	38,589	$	270,193	$	114,275	$	17,255	$	928,106
Special mention	3,732		531		—		—		—		238		—		—		4,501
Substandard	—		144		902		—		106		1,701		529		—		3,382
PCD	—		—		—		—		—		1,130		—		—		1,130

23

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 mention	5,481		—		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 mention	4,584		13,583		12,794		541		—		10,144		9,392		35		51,073
Substandard	640		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
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 Mention	14,390		33,846		46,238		31,174		70,577		101,508		12,279		35		310,047

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Total Substandard	640		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 $586,583 and $571,611 as of March 31, 2024 and 2023, respectively. A summary of the changes in the related servicing assets are as follows:

	Three Months Ended March 31,
	2024		2023
Balance at beginning of period	$	13,258	$	14,880
Increase from loan sales	635		959
Servicing asset impairment, net recoveries	222		424
Amortization charged as a reduction to income	(1,493)		(1,015)
Balance at end of period	$	12,622	$	15,248

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 March 31, 2024 and 2023 there was a valuation allowance of $1,310 and $2,027, 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 March 31, 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 March 31,
	2024		2023
SBA LHI principal sold	$	13,233	$	6,340
Gain on sale of SBA LHI	1,176		148
USDA LHI principal sold	—		44,002
Gain on sale of USDA LHI	—		6,984

LHFS

The following table reflects LHFS.

	March 31, 2024		December 31, 2023
SBA/USDA construction and land	$	41,456	$	41,492
1 - 4 family residential	772		788
SBA OOCRE	3,976		16,758
NOOCRE	10,500		10,500
SBA commercial	8,058		9,534
Total LHFS	$	64,762	$	79,072

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5. Fair Value

The following table summarizes assets measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

	March 31, 2024
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Financial Assets:
AFS debt securities	$	—	$	1,166,268	$	—	$	1,166,268
Equity securities with a readily determinable fair value	9,792		—		—		9,792
LHFS(1)	—		53,490		—		53,490
Interest rate swap designated as hedging instruments	—		14,370		—		14,370
Correspondent interest rate swaps not designated as hedging instruments	—		36,357		—		36,357
Customer interest rate swaps not designated as hedging instruments	—		941		—		941
Correspondent interest rate caps and collars not designated as hedging instruments	—		1,367		—		1,367
Financial Liabilities:
Interest rate swap designated as hedging instruments	$	—	$	50,431	$	—	$	50,431
Correspondent interest rate swaps not designated as hedging instruments	—		1,068		—		1,068
Customer interest rate swaps not designated as hedging instruments	—		35,755		—		35,755
Customer interest rate caps and collars not designated as hedging instruments	—		1,367		—		1,367

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 value	9,897		—		—		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 three months ended March 31, 2024 and December 31, 2023.

26

The following table summarizes assets measured at fair value on a non-recurring basis as of March 31, 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 March 31, 2024
Assets:
Collateral dependent loans with an ACL	$	—	$	—	$	13,160	$	13,160
Servicing assets with a valuation allowance	—		—		4,728		4,728
OREO	—		—		18,445		18,445
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 March 31, 2024, collateral dependent loans with an allowance had a recorded investment of $16,117, with $2,957 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 March 31, 2024, servicing assets of $6,038 had a valuation allowance totaling $1,310. At December 31, 2023, servicing assets of $8,214 had a valuation allowance totaling $1,532.

OREO primarily consists of five properties recorded with a fair value of approximately $18,445 at March 31, 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 March 31, 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 March 31, 2024 and December 31, 2023 were as follows:

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			Fair Value
	Carrying Amount		Level 1		Level 2		Level 3
March 31, 2024
Financial assets:
Cash and cash equivalents	$	740,769	$	—	$	740,769	$	—
HTM debt securities	178,662		—		155,741		—
LHFS(1)	11,272		—		11,272		—
LHI(2)	9,573,890		—		—		9,409,404
Accrued interest receivable	51,476		—		51,476		—
BOLI	85,359		—		85,359		—
Servicing asset	7,894		—		7,894		—
Equity securities without a readily determinable fair value	38,194		N/A		N/A		N/A
FHLB and FRB stock	54,094		N/A		N/A		N/A
Financial liabilities:
Noninterest-bearing deposits	$	2,349,211	$	—	$	2,349,211	$	—
Interest-bearing deposits	8,304,609		—		8,147,449		—
Advances from FHLB	100,000		—		100,056		—
Accrued interest payable	33,200		—		33,200		—
Subordinated debentures and subordinated notes	230,034		—		230,034		—
December 31, 2023
Financial assets:
Cash and cash equivalents	$	629,063	$	—	$	629,063	$	—
HTM debt securities	180,403		—		160,021		—
LHFS(1)	11,288		—		11,288		—
LHI(2)	9,577,180		—		—		9,322,744
Accrued interest receivable	53,313		—		53,313		—
BOLI	84,833		—		84,833		—
Servicing asset	6,576		—		6,576		—
Equity securities without a readily determinable fair value	11,624		N/A		N/A		N/A
FHLB and FRB stock	53,699		N/A		N/A		N/A
Financial liabilities:
Noninterest-bearing deposits	$	2,218,036	$	—	$	2,218,036	$	—
Interest-bearing deposits	8,120,159		—		8,096,209		—
Advances from FHLB	100,000		—		100,051		—
Accrued interest payable	41,948		—		41,948		—
Subordinated debentures and subordinated notes	229,783		—		229,783		—

(1) LHFS primarily represent commercial loans moved to held for sale or mortgage LHFS that are carried at lower of cost or market.

(2) LHI includes MW and is carried at amortized cost.

6. 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

28

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 March 31, 2024 and December 31, 2023 are as shown in the table below.

	March 31, 2024						December 31, 2023
			Estimated Fair Value						Estimated Fair Value
	Notional Amount		Asset Derivative		Liability Derivative		Notional Amount		Asset Derivative		Liability Derivative
Derivatives designated as hedging instruments (cash flow hedges):
Interest rate swap on money market deposit account payments	$	250,000	$	11,047	$	—	$	250,000	$	12,208	$	—
Interest rate swaps on fixed rate advances/brokered CDs	200,000		—		1,286		200,000		—		4,296
Interest rate swaps on customer loan interest payments	375,000		—		45,237		375,000		—		40,055
Interest rate collars on customer loan interest payments	450,000		1,151		3,908		450,000		2,304		2,770
Interest rate floor on customer loan interest payments	200,000		2,172		—		200,000		4,302		—
Total derivatives designated as hedging instruments	$	1,475,000	$	14,370	$	50,431	$	1,475,000	$	18,814	$	47,121
Derivatives not designated as hedging instruments:
Financial institution counterparty:
Interest rate swaps	$	907,171	$	36,357	$	1,068	$	893,702	$	28,007	$	2,322
Interest rate caps and corridors	319,974		1,367		—		285,370		1,344		—
Commercial customer counterparty:
Interest rate swaps	907,171		941		35,755		893,702		2,118		27,288
Interest rate caps and corridors	319,974		—		1,367		285,370		—		1,344
Total derivatives not designated as hedging instruments	$	2,454,290	$	38,665	$	38,190	$	2,358,144	$	31,469	$	30,954
Offsetting derivative assets/liabilities	—		(33,531)		(33,531)		—		(29,463)		(29,463)
Total derivatives	$	3,929,290	$	19,504	$	55,090	$	3,833,144	$	20,820	$	48,612

29

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

	For the Three Months Ended March 31, 2024						For the Three Months Ended March 31, 2023
	(Loss) gain recognized in other comprehensive income on derivative		Gain (loss) reclassified from accumulated other comprehensive income into income		Location of (loss) gain reclassified from accumulated other comprehensive income into income		(Loss) gain recognized in other comprehensive income on derivative		Gain (loss) reclassified from accumulated other comprehensive income into income		Location 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		$	(1,082)	$	1,082	Interest Expense
Interest rate swap on money market deposit account payments	1,849		3,439		Interest Expense		(3,977)		2,568		Interest Expense
Interest rate swaps, collars and floors on customer loan interest payments	(9,250)		(5,369)		Interest Income		12,136		(3,807)		Interest Income
Total	$	(8,495)	$	(836)			$	7,077	$	(157)
					Net gain recognized in other noninterest income						Net gain recognized in other noninterest income
Derivatives not designated as hedging instruments:
Interest rate swaps, caps and collars					$	449					$	212

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.    

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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.

The following is a summary of the interest rate swaps, caps and collars outstanding as of March 31, 2024 and December 31, 2023.

	March 31, 2024
	Notional Amount		Fixed Rate	Floating Rate	Maturity	Fair Value
Non-hedging derivative instruments:
Customer interest rate derivative:
Interest rate swaps - receive fixed/pay floating	$	907,171	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. 3.9 years	$	(34,815)
Interest rate caps and corridors	$	319,974	3.50% - 7.50%	SOFR CME 1 month + 0.0% - 3% SOFR + 0.0%	Wtd. Avg. 0.5 years	$	(1,367)
Correspondent interest rate derivative:
Interest rate swaps - pay fixed/receive floating	$	907,171	2.41% - 7.37%	LIBOR 1 month + 3.0% SOFR CME 1 month + 0.0% - 3.8% SOFR-NYFD 30 day avg + 2.5% - 3.0%	Wtd. Avg. 3.9 years	$	35,288
Interest rate caps and corridors	$	319,974	3.50% - 7.50%	SOFR CME 1 month + 0.0% - 3.0% SOFR + 0.0%	Wtd. Avg. 0.5 years	$	1,367
	December 31, 2023
	Notional Amount		Fixed Rate	Floating Rate	Maturity	Fair 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% + 3.0% 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% - 3% SOFR + 0.0%	Wtd. Avg. 0.8 years	$	1,344

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7. 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 March 31, 2024 and December 31, 2023:

	March 31,		December 31,
	2024		2023
Commitments to extend credit	$	2,834,310	$	3,083,501
MW commitments	794,470		803,704
Standby and commercial letters of credit	113,405		111,590
Total	$	3,742,185	$	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 March 31,
	2024		2023
Beginning balance for ACL on unfunded commitments	$	8,045	$	10,086
(Benefit) provision for credit losses on unfunded commitments	(1,541)		1,497
Ending balance of ACL on unfunded commitments	$	6,504	$	11,583

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8. 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 months ended March 31, 2024 and 2023.

A summary of option activity under the 2010 Incentive Plan for the three months ended March 31, 2024 and 2023, and changes during the periods then ended, is presented below:

	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, 2023	1,000	$	10.43	1.07 years
Exercised	(1,000)	10.43
Outstanding and exercisable at March 31, 2023	—	$	—	—	$	—

A summary of the fair value of the Company’s stock options exercised under the 2010 Incentive Plan for the three months ended March 31, 2024 and 2023 is presented below:

	Fair Value of Options Exercised as of March 31,
	2024		2023
Nonperformance-based stock options exercised	$	—	$	16

2022 Equity Plan, Veritex (Green) 2014 Plan and Green 2010 Plan

Grants of RSU

    During the three months ending March 31, 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 three months ending March 31, 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 March 31,
	2024		2023
2022 Equity Plan	$	2,459	$	2,465
Veritex (Green) 2014 Plan	430		422

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2022 Equity Plan

A summary of the status of the Company’s stock options under the 2022 Equity Plan as of March 31, 2024 and 2023, and changes during the three 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, 2023	657,494	$	24.47
Forfeited	(1,666)	17.38
Cancelled	(3,804)	29.13
Exercised	(3,951)	21.38
Outstanding at March 31, 2023	648,073	$	24.48	5.24 years
Options exercisable at March 31, 2023	610,073	$	24.74	5.13 years
Outstanding at January 1, 2024	602,573	$	24.40
Outstanding at March 31, 2024	602,573	$	24.40	4.59 years	$	215,379
Options exercisable at March 31, 2024	602,573	$	24.40	4.59 years	$	215,379

There was no unrecognized compensation expense related to options awarded under the 2022 Equity Plan as of March 31, 2024 and December 31, 2023. As of March 31, 2023, there $122 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 March 31, 2024 and 2023, and changes during the three months then ended, is as follows:

	2022 Equity Plan
	Non-performance-Based
	RSUs
	Units	Weighted Average Grant Date Fair Value
Outstanding at January 1, 2023	955,104	$	28.38
Granted	224,165	27.90
Vested into shares	(162,952)	30.23
Forfeited	(16,394)	31.77
Outstanding at March 31, 2023	999,923	$	27.87
Outstanding at January 1, 2024	948,513	$	27.52
Granted	190,018	21.94
Vested into shares	(159,113)	29.87
Forfeited	(4,700)	30.73
Outstanding at March 31, 2024	974,718	$	26.03

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A summary of the status of the Company’s PSUs under the 2022 Equity Plan as of March 31, 2024 and 2023, and changes during the three months then ended, is as follows:

	2022 Equity Plan
	Performance-Based
	PSUs
	Units	Weighted Average Grant Date Fair Value
Outstanding at January 1, 2023	126,707	$	31.19
Granted	53,310	27.55
Vested into shares	(41,781)	26.42
Outstanding at March 31, 2023	129,768	$	30.28
Outstanding at January 1, 2024	129,786	$	30.28
Granted	113,144	18.84
Vested into shares	(56,729)	25.94
Outstanding at March 31, 2024	186,201	$	25.01

As of March 31, 2024, December 31, 2023 and March 31, 2023, there was $18,421, $14,692 and $15,278 of total unrecognized compensation related to RSUs and PSUs awarded under the 2022 Equity Plan, respectively. The unrecognized compensation expense at March 31, 2024 is expected to be recognized over the remaining weighted average requisite service period of 2.60 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 three months ended March 31, 2024 and 2023 is presented below:

	Fair Value of Options Exercised or RSUs Vested in the Three Months Ended March 31,
	2024		2023
Non-performance-based stock options exercised	$	—	$	31
RSUs vested	3,057		3,044
PSUs vested	1,133		1,070

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Veritex (Green) 2014 Plan

A summary of the status of the Company’s stock options under the Veritex (Green) 2014 Plan as of March 31, 2024 and 2023, and changes during the three 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, 2023	155,212	$	19.83
Cancelled	(505)	21.38
Exercised	(13,266)	21.38
Outstanding at March 31, 2023	141,441	$	21.86	4.87 years
Options exercisable at March 31, 2023	141,441	$	21.86	4.87 years
Outstanding at January 1, 2024	124,499	$	22.00
Outstanding at March 31, 2024	124,499	$	22.00	3.46 years	$	391,054
Options exercisable at March 31, 2024	124,499	$	22.00	3.46 years	$	391,054
Weighted average fair value of options granted during the period		$	—

As of March 31, 2024, December 31, 2023 and March 31, 2023 there was no unrecognized compensation expense related to options awarded under the Veritex (Green) 2014 Plan.

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A summary of the status of the Company’s RSUs under the Veritex (Green) 2014 Plan as of March 31, 2024 and 2023 and changes during the three months then ended, is as follows:

	Veritex (Green) 2014 Plan
	Non-performance-Based
	RSUs
	Units	Weighted Average Grant Date Fair Value
Outstanding at January 1, 2023	86,233	$	21.09
Vested into shares	(19,282)	29.66
Forfeited	(2,232)	29.13
Outstanding at March 31, 2023	64,719	$	18.26
Outstanding at January 1, 2024	64,719	$	18.26
Vested into shares	(3,308)	32.20
Outstanding at March 31, 2024	61,411	$	17.51

A summary of the status of the Company’s PSUs under the Veritex (Green) 2014 Plan as of March 31, 2024 and 2023 and changes during the three months then ended, is as follows:

	Veritex (Green) 2014 Plan
	Performance-Based
	PSUs
	Units	Weighted Average Grant Date Fair Value
Outstanding at January 1, 2023	19,173	$	30.74
Vested into shares	(8,531)	25.94
Outstanding at March 31, 2023	10,642	$	31.93
Outstanding at January 1, 2024	10,642	$	31.93
Granted	1,246	18.84
Vested into shares	(7,477)	25.94
Outstanding at March 31, 2024	4,411	$	40.38

As of March 31, 2024, December 31, 2023 and March 31, 2023, there was $1,383, $1,781, and $3,260, 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 1.12 years.

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    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 three months ended March 31, 2024 and 2023 presented below:

	Fair Value of Options Exercised or RSUs Vested in the Three Months Ended March 31,
	2024		2023
Non-performance-based stock options exercised	$	—	$	18
RSUs vested	326		1,990
PSU vested	149		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 March 31, 2024 and 2023, and changes during the three 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, 2023	43,162	$	13.11
Exercised	(29,630)	13.22
Outstanding at March 31, 2023	13,532	$	12.86	3.94 years
Outstanding at January 1, 2024	10,784	$	12.65
Outstanding at March 31, 2024	10,784	$	12.65	3.82 years	$	85

A summary of the fair value of the Company’s stock options exercised under the Green 2010 Plan during the three months ended March 31, 2024 and 2023 presented below:

	Fair Value of Options Exercised as of March 31,
	2024		2023
Nonperformance-based stock options exercised	$	—	$	365

9. Income Taxes

    Income tax expense for the three months ended March 31, 2024 and 2023 was as follows:

	Three Months Ended March 31,
	2024			2023
Income tax expense for the period	$	7,237		$	11,012
Effective tax rate	23.1		%	22.3		%

For the three months ended March 31, 2024, the Company had an effective tax rate of 23.1%. The Company had a net discrete tax expense of $384 thousand associated with the recognition of an excess tax expense realized on share-based payment awards during the three months ended March 31, 2024. Excluding this discrete tax item, the Company had an effective tax rate of 21.8% for the three months ended March 31, 2024.

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

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impairment on our investment in Thrive as of March 31, 2024. The deferred tax asset is not realizable due to the capital loss that will not be recognized. The position was upheld as of March 31, 2024. There was no valuation allowance in the comparable period in 2023.

For the three months ended March 31, 2023, the Company had an effective tax rate of 22.3%. The Company had a net discrete tax expense of $112 thousand associated with the recognition of an excess tax expense realized on share-based payment awards during the three months ended March 31, 2023. Excluding this discrete tax item, the Company had an effective tax rate of 22.1% for the three months ended March 31, 2023.

10. 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.

11. 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.

As of March 31, 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 March 31, 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.

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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
	Amount		Ratio		Amount		Ratio		Amount		Ratio
As of March 31, 2024
Total capital (to RWA)
Company	$	1,520,656	13.33	%	$	912,622	8.0	%	n/a		n/a
Bank	1,475,046		12.98		909,119		8.0		$	1,136,399	10.0
Tier 1 capital (to RWA)
Company	1,212,512		10.63		684,391		6.0		n/a		n/a
Bank	1,365,973		12.02		681,850		6.0		909,133		8.0
CET1 (to RWA)
Company	1,182,567		10.37		513,168		4.5		n/a		n/a
Bank	1,365,973		12.02		511,388		4.5		738,671		6.5
Tier 1 capital (to average assets)
Company	1,212,512		10.12		479,254		4.0		n/a		n/a
Bank	1,365,973		11.41		478,869		4.0		598,586		5.0
As of December 31, 2023
Total capital (to RWA)
Company	$	1,500,703	13.18	%	$	910,897	8.0	%	n/a		n/a
Bank	1,467,960		12.90		910,363		8.0		$	1,137,953	10.0	%
Tier 1 capital (to RWA)
Company	1,202,252		10.56		683,098		6.0		n/a		n/a
Bank	1,368,384		12.03		682,486		6.0		909,981		8.0
CET1 (to RWA)
Company	1,172,362		10.29		512,695		4.5		n/a		n/a
Bank	1,368,384		12.03		511,864		4.5		739,360		6.5
Tier 1 capital (to average assets)
Company	1,202,252		10.03		479,462		4.0		n/a		n/a
Bank	1,368,384		11.43		478,875		4.0		598,593		5.0

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 $27,500 were paid by the Bank to the Holdco during the three months ending March 31, 2024. There were no dividends paid by the Bank to the Holdco during the three months ended March 31, 2023.

Dividends of $10,899, or $0.20 per issued and outstanding share of the the Company’s common stock and $10,837, or $0.20, per outstanding share of the Company’s common stock were paid by the Company during the three months ended March 31, 2024 and 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 4.98% as of March 31, 2024.

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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 now 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.

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Results of Operations for the Three Months Ended March 31, 2024 and March 31, 2023

General

    Net income for the three months ended March 31, 2024 was $24.2 million, a decrease of $14.2 million, or 37.1%, from net income of $38.4 million for the three months ended March 31, 2023.

    Basic EPS for the three months ended March 31, 2024 was $0.44, a decrease of $0.27 from $0.71 for the three months ended March 31, 2023. Diluted EPS for the three months ended March 31, 2024 was $0.44, a decrease of $0.26 from $0.70 for the three months ended March 31, 2023.

Net Interest Income

For the three months ended March 31, 2024, net interest income before provisions for credit losses totaled $92.8 million and net interest margin and net interest spread were 3.24% and 1.97%, respectively. For the three months ended March 31, 2023, net interest income before provision for credit losses totaled $103.4 million and net interest margin and net interest spread were 3.69% and 2.74%, respectively. Net interest margin decreased 45 bps from the three months ended March 31, 2023, primarily due to an increase in the average rate paid on interest-bearing liabilities, offset by an increase in the average yields earned on interest-earning assets. The decrease in net interest income of $10.6 million was primarily attributable to an increase of $19.5 million in interest expense on certificates and other time deposits and a $16.9 million increase in interest expense on transaction. The decrease was partially offset by a $11.0 million decrease in interest expense on advances from FHLB, an increase in interest income on loans of $10.2 million due to an increase in loan yields and higher average balances, during the three months ended March 31, 2024, compared to the three months ended March 31, 2023. The $36.5 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 137 bps to 4.43% for the three months ended March 31, 2024 from 3.06% for the three months ended March 31, 2023. The average costs of total deposits, including noninterest-bearing deposits, for the three months ended March 31, 2024 increased 118 basis points to 3.42% compared to 2.24% for the three months ended March 31, 2023.

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%. For the three months ended March 31, 2023, interest expense totaled $66.2 million and the average rate paid on interest-bearing liabilities was 3.32%. The increase of $25.6 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.

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    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 three months ended March 31, 2024 and March 31, 2023, interest income not recognized on non-accrual loans was $781 thousand and $772 thousand, respectively. Any non-accrual loans have been included in the table as loans carrying a zero yield.

	For the Three Months Ended March 31,
	2024						2023
			Interest						Interest
	Average		Earned/		Average		Average		Earned/		Average
	Outstanding		Interest		Yield/		Outstanding		Interest		Yield/
	Balance		Paid		Rate		Balance		Paid		Rate
	(Dollars in thousands)
Assets
Interest-earning assets:
Loans(1)	$	9,283,815	$	157,585	6.83	%	$	9,141,137	$	146,801	6.51	%
LHI, MW	279,557		4,357		6.27		360,172		4,906		5.52
Debt securities	1,294,994		13,695		4.25		1,252,457		10,988		3.56
Interest-bearing deposits in other banks	584,593		8,050		5.54		478,345		5,534		4.69
Equity securities and other investments	85,232		900		4.25		124,985		1,408		4.57
Total interest-earning assets	11,528,191		184,587		6.44		11,357,096		169,637		6.06
ACL	(112,229)						(92,664)
Noninterest-earning assets	920,080						949,881
Total assets	$	12,336,042					$	12,214,313
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand and savings deposits	$	4,639,445	$	46,784	4.06	%	$	4,150,995	$	29,857	2.92	%
Certificates and other time deposits	3,283,735		40,492		4.96		2,588,728		20,967		3.28
Advances from FHLB	100,989		1,391		5.54		1,122,683		12,358		4.46
Subordinated debentures and subordinated notes	229,881		3,114		5.45		231,251		3,066		5.38
Total interest-bearing liabilities	8,254,050		91,781		4.47		8,093,657		66,248		3.32
Noninterest-bearing liabilities:
Noninterest-bearing deposits	2,355,315						2,470,700
Other liabilities	192,809						173,380
Total liabilities	10,802,174						10,737,737
Stockholders’ equity	1,533,868						1,476,576
Total liabilities and stockholders’ equity	$	12,336,042					$	12,214,313
Net interest rate spread(2)					1.97	%					2.74	%
Net interest income			$	92,806					$	103,389
Net interest margin(3)					3.24	%					3.69	%

(1) Includes average outstanding balances of LHFS of $53,866 and $19,679 for the three months ended March 31, 2024 and March 31, 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.

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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
	March 31, 2024 vs March 31, 2023
	Increase (Decrease)
	Due to Change in
	Volume		Rate		Total
	(In thousands)
Interest-earning assets:
Loans	$	2,310	$	8,474	$	10,784
LHI, MW	(1,106)		557		(549)
Debt securities	376		2,331		2,707
Interest-bearing deposits in other banks	1,239		1,277		2,516
Equity securities and other investments	(452)		(56)		(508)
Total increase in interest income	2,367		12,583		14,950
Interest-bearing liabilities:
Interest-bearing demand and savings deposits	3,543		13,384		16,927
Certificates and other time deposits	5,676		13,849		19,525
Advances from FHLB	(11,340)		373		(10,967)
Subordinated debentures and subordinated notes	(18)		66		48
Total increase in interest expense	(2,139)		27,672		25,533
Increase in net interest income	$	4,506	$	(15,089)	$	(10,583)

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 $7.5 million for the three months ended March 31, 2024, compared to a $9.4 million provision for credit loan losses for the three months ended March 31, 2023, a decrease of $1.9 million. The decrease in the recorded provision for credit losses for the three months ended March 31, 2024 was primarily attributable to changes in the Texas economic forecast.

For the three months ended March 31, 2024, we also recorded a $1.5 million benefit for unfunded commitments compared to a $1.5 million provision for unfunded commitments for three months ended March 31, 2023. The change from a provision to a benefit for unfunded commitments was attributable to a decrease in unfunded commitment balances.

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Noninterest Income

The following table presents, for the periods indicated, the major categories of noninterest income:

	For the
	Three Months Ended
	March 31,				Increase
	2024		2023		(Decrease)
	(In thousands)
Noninterest income:
Service charges and fees on deposit accounts	$	4,896	$	5,017	$	(121)
Loan fees	2,510		2,064		446
Loss on sales of debt securities	(6,304)		(5,321)		(983)
Government guaranteed loan income, net	2,614		9,688		(7,074)
Equity method investment loss	—		(1,521)		1,521
Customer swap income	408		217		191
Other	2,538		3,387		(849)
Total noninterest income	$	6,662	$	13,531	$	(6,869)

Noninterest income for the three months ended March 31, 2024 decreased $6.9 million, or 50.8%, to $6.7 million compared to noninterest income of $13.5 million for the three months ended March 31, 2023. The primary drivers of the decrease were as follows:

Loss on sales of debt securities. The increase in the loss on sale of debt securities during the three months ended March 31, 2024, compared to the three months ended March 31, 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.

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 $7.1 million during the three months ended March 31, 2024 was primarily due to a $5.7 million decrease in the gain on USDA loans and a decrease of $2.8 million in government guaranteed LHFS loan valuation, compared to the three months ended March 31, 2023. The decrease was partially offset by an increase of $1.4 million in the gain on SBA loans.

Equity method investment loss. Equity method investment loss is comprised of losses and gains primarily related to our 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.

Other. Other includes other noninterest income from fees. Other noninterest income was $2.5 million for the three months ended March 31, 2024, an decrease of $849 thousand, or 25.1% as compared to the three months ended March 31, 2023. The decrease was primarily driven by a decrease in the valuation adjustment and amortization of our servicing asset of $681 thousand compared to the three months ended March 31, 2023.

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Noninterest Expense

The following table presents, for the periods indicated, the major categories of noninterest expense:

	For the
	Three Months Ended
	March 31,				Increase
	2024		2023		(Decrease)
	(In thousands)
Noninterest expense
Salaries and employee benefits	$	33,365	$	31,865	$	1,500
Occupancy and equipment	4,677		4,973		(296)
Professional and regulatory fees	6,053		4,389		1,664
Data processing and software expense	4,856		4,720		136
Marketing	1,546		1,779		(233)
Amortization of intangibles	2,438		2,495		(57)
Telephone and communications	261		478		(217)
Other	8,920		5,916		3,004
Total noninterest expense	$	62,116	$	56,615	$	5,501

Noninterest expense for the three months ended March 31, 2024 increased $5.5 million, or 9.7%, to $62.1 million compared to noninterest expense of $56.6 million for the three months ended March 31, 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 $33.4 million for the three months ended March 31, 2024, an increase of $1.5 million, or 4.7%, compared to the three months ended March 31, 2023. The increase was primarily attributable to a $1.8 million increase in officer salaries, offset by an increase of $1.2 million in contra origination costs, a decrease of $1.0 million in bonuses and a decrease of $709 thousand in severance costs. The remaining changes were nominal amongst individual other noninterest expense accounts.

Professional and regulatory fees. The category includes legal, professional, audit, regulatory, and FDIC assessment fees. The increase of $1.7 million, or 37.9%, was primarily attributable to an increase of $963 thousand of FDIC assessment fees that increased when the Company crossed $10 billion in total assets and an increase of $536 thousand professional services.

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 $8.9 million for the three months ended March 31, 2024, compared to $5.9 million for the same period in 2023, an increase of $3.0 million, or 50.8%. This increase was primarily due to an increase of $2.7 million in earned credit rebates during the three months ended March 31, 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 March 31, 2024. As of March 31, 2023, the Company did not believe a valuation allowance was necessary.

46

For the three months ended March 31, 2024, income tax expense totaled $7.2 million, a decrease of $3.8 million, compared to an income tax expense of $11.0 million for the three months ended March 31, 2023. For the three months ended March 31, 2024, we had an effective tax rate of 23.1% which includes a discrete tax expense of $384 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 21.8%. For the three months ended March 31, 2023, the Company had an effective tax rate of 22.3%.

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Financial Condition

Our total assets increased $314.1 million, or 2.5%, from $12.39 billion as of December 31, 2023 to $12.71 billion as of March 31, 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 March 31, 2024, total LHI, excluding ACL, was $9.71 billion, an increase of $112.9 million, or 1.2%, 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, $64.8 million and $79.1 million in loans were classified as LHFS as of March 31, 2024 and December 31, 2023, respectively.

Total LHI as a percentage of deposits were 91.1% and 92.8% as of March 31, 2024 and December 31, 2023, respectively. Total LHI, excluding MW loans, as a percentage of deposits were 86.9% and 89.1% as of March 31, 2024 and December 31, 2023, respectively. Total LHI as a percentage of assets were 76.4% and 77.4% as of March 31, 2024 and December 31, 2023, respectively.

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

	As of March 31,				As of December 31,
	2024				2023				Increase (Decrease)
	Amount		% of Total		Amount		% of Total		Amount		% Change Quarter over Quarter
	(Dollars in thousands)
Commercial	$	2,785,987	28.8	%	$	2,752,063	28.7	%	$	33,924	1.2	%
MW	449,531		4.6		377,796		3.9		71,735		19.0
Real estate:
OOCRE	788,376		8.1		794,088		8.3		(5,712)		(0.7)
NOOCRE	2,352,993		24.2		2,350,725		24.5		2,268		0.1
Construction and land	1,568,257		16.2		1,734,254		18.1		(165,997)		(9.6)
Farmland	30,979		0.3		31,114		0.3		(135)		(0.4)
1-4 family residential	969,401		10.0		937,119		9.8		32,282		3.4
Multifamily	751,607		7.7		605,817		6.3		145,790		24.1
Consumer	8,882		0.1		10,149		0.1		(1,267)		(12.5)
Total LHI, carried at amortized cost(1)	$	9,706,013	100.0	%	$	9,593,125	100.0	%	$	112,888	1.2	%
Total LHFS	$	64,762			$	79,072

(1) Total LHI, carried at amortized cost, excludes $6.9 million and $8.8 million of deferred loan fees, net, as of March 31, 2024 and December 31, 2023, respectively.

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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 March 31,
	2024
Property Type	DFW		Houston		Secondary Texas(1)		Out of State		Total		% of Total Loans
Industrial	$	440,988	$	257,198	$	166,967	$	252,100	$	1,117,253	11.5	%
Multifamily	425,041		481,602		173,180		137,544		1,217,367		12.5
Office	336,002		135,784		23,748		32,652		528,186		5.4
Retails	188,223		194,289		137,745		180,340		700,597		7.2
Hotel	169,792		22,610		112,436		138,819		443,657		4.6
SFR	249,310		34,421		81,248		8,833		373,812		3.9
Other	69,333		86,650		53,393		82,609		291,985		3.0
Total CRE	$	1,878,689	$	1,212,554	$	748,717	$	832,897	$	4,672,857	48.1	%

	As of December 31,
	2023
Property Type	DFW		Houston		Secondary Texas(1)		Out of State		Total		% of Total Loans
Industrial	$	409,899	$	263,880	$	151,780	$	265,138	$	1,090,697	11.4	%
Multifamily	395,344		506,761		165,340		125,890		1,193,335		12.4
Office	361,612		137,486		31,914		32,627		563,639		5.9
Retails	192,770		188,582		138,176		179,536		699,064		7.3
Hotel	166,356		22,764		110,795		141,054		440,969		4.6
SFR	250,151		29,556		89,582		8,201		377,490		3.9
Other	81,981		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.

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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 March 31,				As of December 31,
	2024				2023
Out of State Loan Portfolio	Amount		Percent of Total Loans		Amount		Percent of Total Loans
(Dollars in thousands)
Commercial Real Estate	$	785,201	8.1	%	$	784,523	8.2	%
Lender Finance	536,568		5.5		536,568		5.6
Commercial	371,075		3.8		355,626		3.7
MW	224,903		2.3		141,329		1.5
Mortgage Servicing Rights	229,804		2.4		227,002		2.4
1-4 Family Residential	257,846		2.7		259,745		2.7
USDA and SBA	192,676		2.0		199,184		2.1
Other	370		—		370		—
Total Out of State Loans	$	2,598,443	26.8	%	$	2,504,347	26.1	%

Nonperforming Assets

The following table presents information regarding nonperforming assets by category as of the dates indicated:

	As of March 31,			As of December 31,
	2024			2023
	(Dollars in thousands)
Nonperforming loans(1)
Construction and land	$	6,737		$	6,793
1-4 family residential	3,263			1,965
OOCRE	15,126			9,719
NOOCRE	22,366			33,479
Commercial	37,627			40,868
Consumer	21			24
Accruing loans 90 or more days past due	220			2,975
Total nonperforming loans	85,360			95,823
OREO	18,445			—
Total nonperforming assets	$	103,805		$	95,823
Nonperforming assets to total assets	0.82		%	0.77		%
Nonperforming assets to total loans and OREO	1.06		%	0.99		%
Nonperforming loans to total loans	0.88		%	1.00		%

(1) At March 31, 2024 and December 31, 2023, nonaccrual loans included $9.4 million and $13.7 million, respectively, of PCD loans that are accounted for on a pooled basis.

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Potential Problem Loans

The following tables summarize our internal ratings of our loans as of the dates indicated.

	March 31, 2024
	Pass		Special Mention		Substandard		PCD1		Total
	(Dollars in thousands)
Real estate:
Construction and land	$	1,541,159	$	20,361	$	6,737	$	—	$	1,568,257
Farmland	30,979		—		—		—		30,979
1 - 4 family residential	948,307		4,949		15,031		1,114		969,401
Multi-family residential	751,607		—		—		—		751,607
OOCRE	728,797		27,485		21,526		10,568		788,376
NOOCRE	2,053,124		248,849		41,236		9,784		2,352,993
Commercial	2,661,014		48,114		76,439		420		2,785,987
MW	449,531		—		—		—		449,531
Consumer	8,720		82		69		11		8,882
Total	$	9,173,238	$	349,840	$	161,038	$	21,897	$	9,706,013

1 Within PCD loans, $13,503 are considered classified credits.

	December 31, 2023
	Pass		Special Mention		Substandard		PCD		Total
	(Dollars in thousands)
Real estate:
Construction and land	$	1,693,230	$	34,231	$	6,793	$	—	$	1,734,254
Farmland	31,114		—		—		—		31,114
1 - 4 family residential	928,106		4,501		3,382		1,130		937,119
Multi-family residential	579,021		11,701		15,095		—		605,817
OOCRE	722,430		25,925		27,563		18,170		794,088
NOOCRE	2,066,080		182,531		88,030		14,084		2,350,725
Commercial	2,641,017		51,073		57,065		2,908		2,752,063
MW	377,796		—		—		—		377,796
Consumer	9,972		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.

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The following table presents, as of and for the periods indicated, an analysis of the ACL and other related data:

	March 31, 2024						December 31, 2023
	Allocated Allowance		% of Loan Portfolio		ACL to Loans		Allocated Allowance		% of Loan Portfolio		ACL to Loans
Construction and land	$	19,781	16.2	%	1.26	%	$	21,032	18.1	%	1.21	%
Farmland	107		0.3		0.35		101		0.3		0.32
1 - 4 family residential	11,516		10.0		1.19		9,539		9.8		1.02
Multi-family residential	6,339		7.7		0.84		4,882		6.3		0.81
OOCRE	9,802		8.1		1.24		10,252		8.3		1.29
NOOCRE	31,137		24.2		1.32		27,729		24.5		1.18
Commercial	32,791		28.8		1.18		35,886		28.7		1.30
MW	404		4.6		0.09		260		3.9		0.07
Consumer	155		0.1		1.75		135		0.1		1.33
Total	$	112,032	100.0	%	1.15	%	$	109,816	100.0	%	1.14	%

The ACL increased $2.2 million to $112.0 million as of March 31, 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.

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(Dollars in thousands)	Net (Charge-offs) Recoveries		Average Loans		Annualized Net (Charge-off) Recoveries to Average Loans
Three Months Ended March 31, 2024
Construction and land	$	—	$	1,709,399	—	%
Farmland	—		31,584		—
1 - 4 family residential	1		944,704		—
Multi-family residential	—		712,940		—
OOCRE	(120)		775,124		(0.06)
NOOCRE	(4,293)		2,291,047		(0.75)
Commercial	(850)		2,780,354		(0.12)
MW	—		279,557		—
Consumer	(22)		9,115		(0.97)
Total	$	(5,284)	$	9,533,824	(0.22)	%
Three Months Ended March 31, 2023
Construction and land	$	—	$	1,913,734	—	%
Farmland	—		46,370		—
1 - 4 family residential	1		891,003		—
Multi-family residential	—		377,725		—
OOCRE	(116)		706,052		(0.07)
NOOCRE	—		2,329,895		—
Commercial	(687)		2,866,017		(0.10)
MW	—		360,172		—
Consumer	(56)		7,624		(2.98)
Total	$	(858)	$	9,498,592	(0.04)	%

Net charged-offs increased $4.4 million, or 18 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 March 31, 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 March 31, 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 $38.2 million at March 31, 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.

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FHLB Stock and FRB Stock

As of March 31, 2024, we held FHLB stock and FRB stock of $54.1 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 March 31, 2024, the carrying amount of debt securities totaled $1.34 billion, an increase of $87.9 million, or 7.0%, compared to $1.26 billion as of December 31, 2023. The increase was primarily due purchases of AFS debt securities of $230.0 million. The increase was partially offset by the sale of debt securities of $120.1 million at a loss of $6.3 million and $19.5 million in paydowns. Debt securities represented 10.6% and 10.1% of total assets as of March 31, 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 March 31, 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 133 AFS debt securities that were in an unrealized loss position totaling $94.4 million as of March 31, 2024. The Company evaluated all debt securities and no ACL on debt securities was recognized in the Company’s consolidated balance sheets as of March 31, 2024. The Company recorded no ACL for its held to maturity debt securities as of March 31, 2024 and December 31, 2023, respectively.

    As of March 31, 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 March 31, 2024 were $10.65 billion, an increase of $315.6 million, or 3.1%, compared to $10.34 billion as of December 31, 2023. The increase from December 31, 2023 was primarily the result of increases of $295.1 million in certificates and other time deposits, $131.2 million in noninterest-bearing transactions and $17.7 million in correspondent money market deposits. The increase was partially offset by a decrease of $128.3 million in interest-bearing demand deposits.

	March 31, 2024
	Ending Balance		% of Total		Average Outstanding Balance
Noninterest-bearing	$	2,349,211	22.1	%	$	2,355,315
Interest-bearing transaction	724,171		6.8		810,004
Money market	3,326,742		31.2		3,096,567
Savings	169,201		1.6		150,214
Certificates and other time deposits > $250k	1,307,412		12.3		1,318,235
Certificates and other time deposits < $250k	2,179,393		20.4		1,965,500
Correspondent money market accounts	597,690		5.6		582,660
Total deposits	$	10,653,820	100.0	%	$	10,278,495

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	December 31, 2023
	Ending Balance		% of Total		Average Outstanding Balance
Noninterest-bearing	$	2,218,036	21.4	%	$	2,322,556
Interest-bearing transaction	927,193		9.0		851,375
Money market	3,284,324		31.8		3,061,472
Savings	136,868		1.3		115,519
Certificates and other time deposits > $250k	1,312,032		12.7		1,240,834
Certificates and other time deposits < $250k	1,879,705		18.2		2,044,330
Correspondent money market accounts	580,037		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 March 31, 2024 and December 31, 2023, total available borrowing capacity of $2.21 billion and $2.19 billion, respectively, was available under this arrangement with outstanding balances of $100.0 million and $100.0 million, respectively, and a weighted average interest rate of 5.54% for the three months ended March 31, 2024 and 4.70% for the year ended December 31, 2023. The FHLB has also issued standby letters of credit to the Company for $1.38 billion and $1.38 billion as of March 31, 2024 and December 31, 2023, respectively. Our current FHLB advances mature within 0.2 years. Other than FHLB borrowings, 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:

	Three Months Ended
	March 31,		December 31,
	2024		2023
FRB loans pledged as collateral at period end	$	2,015,276	$	2,143,269
FRB securities pledged as collateral at period end	953,163		328,919
BTFP availability at period end(1)	—		455,361
Total FRB availability	$	2,968,439	$	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.

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	March 31, 2024
	Balance		Rate
	(Dollars in thousands)
Junior subordinated debentures
Parkway National Capital Trust I	$	3,093	7.44%
SovDallas Capital Trust I	8,609		9.59
Patriot Bancshares Capital Trust I	5,155		7.43
Patriot Bancshares Capital Trust II	17,011		7.39
Subordinated notes
4.75% Fixed-to-Floating Rate Subordinated Notes	75,000		4.75
4.125% Fixed-to-Floating Rate Subordinated Notes	125,000		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 three months ended March 31, 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 March 31, 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 March 31, 2024 and December 31, 2023.

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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 $12.34 billion for the three months ended March 31, 2024 and $12.28 billion for the year ended December 31, 2023.

	For the		For the
	Three Months Ended		Year Ended
	March 31, 2024		December 31, 2023
Sources of Funds:
Deposits:
Noninterest-bearing	19.1	%	18.8	%
Interest-bearing	37.6		34.2
Certificates and other time deposits	26.6		24.2
Advances from FHLB	0.8		7.1
Other borrowings	1.9		1.9
Other liabilities	1.6		1.6
Stockholders’ equity	12.4		12.2
Total	100.0	%	100.0	%
Uses of Funds:
Loans	76.7	%	77.3	%
Debt Securities	10.5		9.6
Interest-bearing deposits in other banks	4.7		1.0
Other noninterest-earning assets	8.1		12.1
Total	100.0	%	100.0	%
Average noninterest-bearing deposits to average deposits	22.9	%	24.4	%
Average loans, excluding MW, to average deposits	90.3	%	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. Our average LHI decreased 0.4% for the three months ended March 31, 2024, compared to the year ended December 31, 2023. We use excess deposits to pay down FHLB borrowings to reduce wholesale funding.

As of March 31, 2024, we had $2.83 billion in outstanding commitments to extend credit, $794.5 million in unconditionally cancellable MW commitments and $113.4 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 March 31, 2024, we had cash and cash equivalents of $740.8 million compared to $629.1 million as of December 31, 2023.

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Analysis of Cash Flows

	For the Three Months Ended
	March 31, 2024		March 31, 2023
	(In thousands)
Net cash provided by operating activities	$	44,269	$	34,539
Net cash used in investing activities	(237,123)		(66,508)
Net cash provided by financing activities	304,560		404,287
Net change in cash and cash equivalents	$	111,706	$	372,318

Cash Flows Provided by Operating Activities

    For the three months ended March 31, 2024, net cash provided by operating activities increased by $9.7 million when compared to the same period in 2023. The increase in cash provided by operating activities was primarily attributable to a $18.6 million increase in proceeds from LHFS and a $17.3 million decrease in originations of LHFS. The increase was partially offset by a $21.8 million decrease in accounts payable and other liabilities.

Cash Flows Used in Investing Activities

    For the three months ended March 31, 2024, net cash used in investing activities increased by $170.6 million when compared to the same period in 2023. The increase in cash used in investing activities was primarily attributable to a $157.1 million decrease in maturities, and calls and sales/paydowns of AFS debt securities as part of our strategic restructuring of the portfolio.

Cash Flows Provided by Financing Activities

    For the three months ended March 31, 2024, net cash provided by financing activities decreased by $99.7 million when compared to the same period in 2023. The decrease in cash provided by financing activities was primarily attributable to a $505.0 million decrease in advances from FHLB, partially offset by a $405.2 million increase in new deposits.

    As of the three months ended March 31, 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. All repurchases under the Stock Buyback Program to date were made subsequent to the three months ended March 31, 2024.

Share repurchases subsequent to three months ended March 31, 2024 are as follows:

	As of
	May 6, 2024		March 31, 2023
Number of shares repurchased	36,846		—
Weighted average price per share	$	19.97	$	—

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Capital Resources

Total stockholders’ equity increased to $1.54 billion as of March 31, 2024, compared to $1.53 billion as of December 31, 2023, an increase of $7.2 million, or 0.5%. The increase from December 31, 2023 to March 31, 2024 was primarily the result of $24.2 million of net income recognized and $2.9 million in stock-based compensation during the three months ended March 31, 2024. This increase was partially offset by $10.9 million in dividends declared and paid, $7.7 million in accumulated other comprehensive income, and $1.3 million of RSUs vesting during the three months ended March 31, 2024.

By comparison, total stockholders’ equity increased to $1.49 billion as of March 31, 2023, compared to $1.45 billion as of December 31, 2022, an increase of $44.0 million, or 3.0%. The increase from December 31, 2022 to March 31, 2023 was primarily the result of $38.4 million of net income recognized, $14.9 million in other comprehensive income along with $2.9 million in stock-based compensation and a $534 thousand increase due to the exercise of employee stock options during the three months ended March 31, 2023. This increase was partially offset by $10.8 million in dividends declared and paid and $1.9 million of RSUs vesting during the three months ended March 31, 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 March 31, 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 March 31,				As of December 31,
	2024				2023
	Amount		Ratio		Amount		Ratio
	(Dollars in thousands)
Veritex Holdings, Inc.
Total capital (to RWA)	$	1,520,656	13.33	%	$	1,500,703	13.18	%
Tier 1 capital (to RWA)	1,212,512		10.63		1,202,252		10.56
CET1 (to RWA)	1,182,567		10.37		1,172,362		10.29
Tier 1 capital (to average assets)	1,212,512		10.12		1,202,252		10.03
Veritex Community Bank
Total capital (to RWA)	$	1,475,046	12.98	%	$	1,467,960	12.90	%
Tier 1 capital (to RWA)	1,365,973		12.02		1,368,384		12.03
CET1 (to RWA)	1,365,973		12.02		1,368,384		12.03
Tier 1 capital (to average assets)	1,365,973		11.41		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 March 31, 2024 since December 31, 2023 as reported in our Annual Report on Form 10-K for the year ended December 31, 2023.

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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;

•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;

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•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

•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.

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    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 basis point shift, 10.0% for a 200 basis point shift, and 15.0% for a 300 basis point shift.

    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 March 31, 2024				As of December 31, 2023
	Percent Change		Percent Change		Percent Change		Percent Change
Change in Interest	in Net Interest		in Fair Value		in Net Interest		in Fair Value
Rates (Basis Points)	Income		of Equity		Income		of Equity
+ 300	13.54	%	(6.78)	%	11.39	%	(6.15)	%
+ 200	9.12		(3.77)		7.70		(3.23)
+ 100	4.67		(1.33)		3.92		(1.05)
Base	—		—		—		—
−100	(5.89)		(1.51)		(4.16)		(1.65)
−200	(10.32)		(3.98)		(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.

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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 March 31, 2024 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

63

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 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 March 31, 2024, the Company did not repurchase any shares of its common stock under the Stock Buyback Program.

64

Item 6.  Exhibits

 

Exhibit Number	Description of Exhibit
2.3	Agreement and Plan of Reorganization dated July 23, 2018, by and among Veritex Holdings, Inc., MustMS, Inc. and Green Bancorp, Inc. (incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K filed July 24, 2018).
3.2	Third Amended and Restated Bylaws of Veritex Holdings, Inc. (incorporated by reference to Exhibit 3.2 to the Company’s Quarterly Report on Form 10-Q filed July 25, 2017).
31.1*	Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101*	The following materials from Veritex Holdings, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 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.
104	Cover 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.

65

SIGNATURES

    Pursuant to the requirements of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	VERITEX HOLDINGS, INC.
	(Registrant)
Date: May 6, 2024	/s/ C. Malcolm Holland, III
	C. Malcolm Holland, III
	Chairman and Chief Executive Officer
	(Principal Executive Officer)
Date: May 6, 2024	/s/ Terry S. Earley
	Terry S. Earley
	Chief Financial Officer
	(Principal Financial and Accounting Officer)

66

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, C. Malcolm Holland, III, certify that:

1.I have reviewed this Annual Report on Form 10-K of Veritex Holdings, Inc. for the period ended March 31, 2024;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 6, 2024

/s/ C. Malcolm Holland, III

C. Malcolm Holland, III

Chairman of the Board & Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Terry S. Earley, certify that:

1.I have reviewed this Annual Report on Form 10-K of Veritex Holdings, Inc. for the period ended March 31, 2024;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 6, 2024

/s/ Terry S. Earley

Terry S. Earley

Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION

    In connection with the Annual Report on Form 10-K of Veritex Holdings, Inc. (the “Company”) for the period ended March 31, 2024 (the “Report”), as filed with the Securities and Exchange Commission on the date hereof, I, C. Malcolm Holland, III, Chairman and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

1.The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ C. Malcolm Holland, III

C. Malcolm Holland, III

Chairman of the Board & Chief Executive Officer

Date: May 6, 2024

EX-32.2

Exhibit 32.2

CERTIFICATION

    In connection with the Annual Report on Form 10-K of Veritex Holdings, Inc. (the “Company”) for the period ended March 31, 2024 (the “Report”), as filed with the Securities and Exchange Commission on the date hereof, I, Terry S. Earley, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

1.The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Terry S. Earley

Terry S. Earley

Chief Financial Officer

Date: May 6, 2024

XML

Cover Page - shares	3 Months Ended
	Mar. 31, 2024	May 03, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-36682
Entity Registrant Name	VERITEX HOLDINGS, INC.
Entity Incorporation, State or Country Code	TX
Entity Tax Identification Number	27-0973566
Entity Address, Address Line One	8214 Westchester Drive, Suite 800
Entity Address, City or Town	Dallas,
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75225
City Area Code	(972)
Local Phone Number	349-6200
Title of 12(b) Security	Common Stock, par value $0.01
Trading Symbol	VBTX
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		54,525,408
Entity Central Index Key	0001501570
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
ASSETS
Cash and due from banks	$ 41,884	$ 58,914
Interest bearing deposits in other banks	698,885	570,149
Total cash and cash equivalents	740,769	629,063
Debt securities AFS, at fair value	1,166,268	1,076,639
Debt securities HTM (fair value of $155,741 and $160,021, at March 31, 2024 and December 31, 2023, respectively)	178,662	180,403
Equity securities	21,676	21,521
Investment in unconsolidated subsidiaries	1,018	1,018
FHLB Stock and FRB Stock	54,094	53,699
Total investments	1,421,718	1,333,280
LHFS	64,762	79,072
LHI, MW	449,531	377,796
LHI, excluding MW	9,249,551	9,206,544
Less: ACL	(112,032)	(109,816)
Total LHI, net	9,587,050	9,474,524
BOLI	85,359	84,833
Premises and equipment, net	105,299	105,727
OREO	18,445	0
Intangible assets, net of accumulated amortization	38,679	41,753
Goodwill	404,452	404,452
Other assets	241,863	241,633
Total assets	12,708,396	12,394,337
Deposits:
Noninterest-bearing deposits	2,349,211	2,218,036
Interest-bearing transaction and savings deposits	4,220,114	4,348,385
Certificates and other time deposits	3,486,805	3,191,737
Correspondent money market deposits	597,690	580,037
Total deposits	10,653,820	10,338,195
Accounts payable and other liabilities	186,027	195,036
Advances from FHLB	100,000	100,000
Subordinated debentures and subordinated notes	230,034	229,783
Total liabilities	11,169,881	10,863,014
Stockholders’ equity:
Common stock, $0.01 par value: Authorized shares - 75,000,000 Issued shares - 61,134,055 and 60,976,462 at March 31, 2024 and December 31, 2023, respectively	611	610
APIC	1,319,144	1,317,516
Retained earnings	457,499	444,242
AOCI	(71,157)	(63,463)
Treasury stock, 6,638,094 and 6,638,094 shares, at cost, at March 31, 2024 and December 31, 2023, respectively	(167,582)	(167,582)
Total stockholders’ equity	1,538,515	1,531,323
Total liabilities and stockholders’ equity	$ 12,708,396	$ 12,394,337

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Held-to-maturity debt securities, fair value	$ 155,741	$ 160,021
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	75,000,000	75,000,000
Common stock, shares issued (in shares)	61,134,055	60,976,462
Treasury stock (in shares)	6,638,094	6,638,094

XML

Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
INTEREST AND DIVIDEND INCOME
Interest and fees on loans	$ 161,942	$ 151,707
Debt securities	13,695	10,988
Deposits in financial institutions and Federal Funds sold	8,050	5,534
Equity securities and other investments	900	1,408
Total interest and dividend income	184,587	169,637
INTEREST EXPENSE
Transaction and savings deposits	46,784	29,857
Certificates and other time deposits	40,492	20,967
Advances from FHLB	1,391	12,358
Subordinated debentures and subordinated notes	3,114	3,066
Total interest expense	91,781	66,248
NET INTEREST INCOME	92,806	103,389
Provision for credit losses	7,500	9,385
(Benefit) provision for credit losses on unfunded commitments	(1,541)	1,497
Net interest income after provision (benefit) for credit losses	86,847	92,507
NONINTEREST INCOME
Service charges and fees on deposit accounts	4,896	5,017
Loan fees	2,510	2,064
Loss on sales of debt securities	(6,304)	(5,321)
Government guaranteed loan income, net	2,614	9,688
Equity method investment loss	0	(1,521)
Customer swap income	408	217
Other	2,538	3,387
Total noninterest income	6,662	13,531
NONINTEREST EXPENSE
Salaries and employee benefits	33,365	31,865
Occupancy and equipment	4,677	4,973
Professional and regulatory fees	6,053	4,389
Data processing and software expense	4,856	4,720
Marketing	1,546	1,779
Amortization of intangibles	2,438	2,495
Telephone and communications	261	478
Other	8,920	5,916
Total noninterest expense	62,116	56,615
Income before income tax expense	31,393	49,423
Income tax expense	7,237	11,012
NET INCOME	$ 24,156	$ 38,411
Basic EPS (in dollars per share)	$ 0.44	$ 0.71
Diluted EPS (in dollars per share)	$ 0.44	$ 0.70

XML

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
NET INCOME	$ 24,156	$ 38,411
Net unrealized (losses) gains on debt securities AFS:
Change in net unrealized (losses) gains on debt securities AFS during the period, net	(10,421)	2,547
Amortization from transfer of debt securities from AFS to HTM	2,925	3,622
Reclassification adjustment for net losses included in net income	6,304	5,321
Net unrealized (losses) gains on debt securities AFS	(1,192)	11,490
Net unrealized (losses) gains on derivative instruments designated as cash flow hedges	(8,495)	7,078
Other comprehensive (loss) income, before tax	(9,687)	18,568
Income tax (benefit) expense	(1,993)	3,673
Other comprehensive (loss) income, net of tax	(7,694)	14,895
COMPREHENSIVE INCOME	$ 16,462	$ 53,306

XML

Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Treasury Stock	APIC	Retained Earnings	AOCI
Beginning balance (in shares) at Dec. 31, 2022		54,029,955
Beginning balance at Dec. 31, 2022	$ 1,449,773	$ 607	$ (167,582)	$ 1,306,852	$ 379,299	$ (69,403)
Beginning balance (in shares) at Dec. 31, 2022			6,638,094
Increase (Decrease) in Stockholders' Equity
RSU vested, net of shares withheld to cover taxes (in shares)		161,081
RSU vested, net of shares withheld to cover taxes	(1,926)	$ 2		(1,928)
Exercise of employee stock options, net of $121 and $9,729 shares withheld to cover taxes and exercise, respectively (in shares)		37,997
Exercise of employee stock options, net of $121 and $9,729 shares withheld to cover taxes and exercise, respectively	534			534
Stock based compensation	2,887			2,887
Net income	38,411				38,411
Dividends paid	(10,837)				(10,837)
Other comprehensive loss	14,895					14,895
Ending balance (in shares) at Mar. 31, 2023		54,229,033
Ending balance at Mar. 31, 2023	1,493,737	$ 609	$ (167,582)	1,308,345	406,873	(54,508)
Ending balance (in shares) at Mar. 31, 2023			6,638,094
Beginning balance (in shares) at Dec. 31, 2023		54,338,368
Beginning balance at Dec. 31, 2023	$ 1,531,323	$ 610	$ (167,582)	1,317,516	444,242	(63,463)
Beginning balance (in shares) at Dec. 31, 2023	6,638,094		6,638,094
Increase (Decrease) in Stockholders' Equity
RSU vested, net of shares withheld to cover taxes (in shares)		157,593
RSU vested, net of shares withheld to cover taxes	$ (1,260)	$ 1		(1,261)
Stock based compensation	2,889			2,889
Net income	24,156				24,156
Dividends paid	(10,899)				(10,899)
Other comprehensive loss	(7,694)					(7,694)
Ending balance (in shares) at Mar. 31, 2024		54,495,961
Ending balance at Mar. 31, 2024	$ 1,538,515	$ 611	$ (167,582)	$ 1,319,144	$ 457,499	$ (71,157)
Ending balance (in shares) at Mar. 31, 2024	6,638,094		6,638,094

XML

Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parenthetical) - shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Restricted Stock Units
Shares withheld to cover tax withholdings (in shares)	69,034	71,465
Employee Stock Options
Shares withheld to cover tax withholdings (in shares)		121
Shares withheld to cover exercise price (in shares)		9,729

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities:
Net income	$ 24,156	$ 38,411
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of fixed assets and intangibles	5,127	4,764
Net (accretion) amortization of time deposit premium, debt discount and debt issuance costs	(843)	240
Provision for credit losses and unfunded commitments	5,959	10,882
Accretion of loan discount	(422)	(1,014)
Stock-based compensation expense	2,889	2,887
Excess tax expense from stock compensation	384	112
Net amortization of premiums on debt securities	1,191	885
Unrealized loss (gain) on equity securities recognized in earnings	105	(126)
Change in cash surrender value and mortality rates of BOLI	(526)	(466)
Loss on sales of debt securities	6,304	5,321
Change in fair value of government guaranteed loans using fair value option	49	(2,239)
Gain on sales of mortgage LHFS	(10)	(6)
Gain on sales of government guaranteed loans	(3,211)	(7,449)
Servicing asset recoveries, net	(222)	(424)
Originations of LHFS	(7,842)	(25,136)
Proceeds from sales of LHFS	24,148	5,520
Equity method investment loss	0	1,521
Decrease (increase) in other assets	4,845	(3,119)
(Decrease) increase in accounts payable and other liabilities	(17,812)	3,975
Net cash provided by operating activities	44,269	34,539
Cash flows from investing activities:
Purchases of AFS debt securities	(229,936)	(149,982)
Proceeds from sales of AFS debt securities	113,794	109,793
Proceeds from maturities, calls and pay downs of AFS debt securities	18,201	175,289
Maturity, calls and paydowns of HTM debt securities	1,366	800
Purchases of other investments	(655)	(15,045)
Net loans originated	(153,534)	(134,513)
Proceeds from sale of government guaranteed loans	14,409	(52,868)
Net (disposals) additions to premises and equipment	(768)	18
Net cash used in investing activities	(237,123)	(66,508)
Cash flows from financing activities:
Net increase (decrease) in deposits	316,719	(88,484)
Net increase in advances from FHLB	0	505,000
Payments to tax authorities for stock-based compensation	(1,260)	(1,926)
Proceeds from exercise of employee stock options	0	534
Dividends paid	(10,899)	(10,837)
Net cash provided by financing activities	304,560	404,287
Net increase in cash and cash equivalents	111,706	372,318
Cash and cash equivalents at beginning of period	629,063	436,077
Cash and cash equivalents at end of period	$ 740,769	$ 808,395

XML

Operations and Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Operations and Summary of Significant Accounting Policies

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. As of this filing, one branch in the Dallas-Fort Worth metroplex was opened after first quarter end 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 March 31, 2024 and December 31, 2023, consolidated statements of income, consolidated statements of comprehensive income (loss) and consolidated changes in stockholders’ equity for the three months ended March 31, 2024 and 2023 and consolidated statements of cash flows for the three months ended March 31, 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.

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 months ended March 31, 2024 and 2023:

	Three Months Ended March 31,
	2024		2023
Numerator:
Net income	$	24,156	$	38,411
Denominator:
Weighted average shares outstanding for basic EPS	54,444		54,149
Dilutive effect of employee stock-based awards	398		457
Adjusted weighted average shares outstanding	54,842		54,606
EPS:
Basic	$	0.44	$	0.71
Diluted	$	0.44	$	0.70
Antidilutive shares	1,127		834

For the three months ended March 31, 2024, there were 1,127 antidilutive shares excluded from the diluted EPS weighted average shares outstanding, 514 relating to RSUs and 613 relating to stock options.

For the three months ended March 31, 2023, there were 834 antidilutive shares excluded from the diluted EPS weighted average shares outstanding, 440 related to RSUs and 214 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 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.

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Supplemental Statement of Cash Flows

3 Months Ended

Mar. 31, 2024

Supplemental Cash Flow Elements [Abstract]

Supplemental Statement of Cash Flows

Supplemental Statement of Cash Flows

Other supplemental cash flow information is presented below:

	Three Months Ended March 31,
	2024		2023
	(in thousands)
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest	$	98,354	$	54,189
Cash paid for income taxes	—		—

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Securities

3 Months Ended

Mar. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Securities

Securities

Equity Securities With a Readily Determinable Fair Value

The Company held equity securities with a fair value of $9,792 and $9,897 at March 31, 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 months ended March 31, 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 March 31,
	2024		2023
Unrealized (loss) gain recognized on equity securities with a readily determinable fair value	$	(105)	$	126

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 $38,194 and $11,624 as of March 31, 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 months ended March 31, 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:

	March 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		ACL		Fair Value
AFS
Corporate bonds	$	262,526	$	1,198	$	26,431	$	—	$	237,293
Municipal securities	14,272		—		3,357		—		10,915
MBS	199,632		3,361		14,686		—		188,307
CMO	574,622		3,520		47,263		—		530,879
Asset-backed securities	122,078		732		2,549		—		120,261
Collateralized loan obligations	78,672		14		73		—		78,613
	$	1,251,802	$	8,825	$	94,359	$	—	$	1,166,268
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		ACL		Fair Value
HTM
MBS	$	33,154	$	—	$	6,719	$	—	$	26,435
CMO	33,586		—		4,927		—		28,659
Municipal securities	111,922		7		11,282		—		100,647
	$	178,662	$	7	$	22,928	$	—	$	155,741

	December 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		ACL		Fair Value
AFS
Corporate bonds	$	244,652	$	1,034	$	29,566	$	—	$	216,120
Municipal securities	46,631		108		3,258		—		43,481
MBS	194,486		4,430		13,465		—		185,451
CMO	563,421		4,634		46,999		—		521,056
Asset-backed securities	47,738		1,045		2,130		—		46,653
Collateralized loan obligations	64,250		—		372		—		63,878
	$	1,161,178	$	11,251	$	95,790	$	—	$	1,076,639
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		ACL		Fair Value
HTM
MBS	$	33,716	$	—	$	6,037	$	—	$	27,679
CMO	34,483		—		4,567		—		29,916
Municipal securities	112,204		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 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 $2,925 and $3,122 at March 31, 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:

	March 31, 2024
	Less Than 12 Months				12 Months or More				Totals
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
AFS
Corporate bonds	$	53,376	$	5,297	$	164,604	$	21,134	$	217,980	$	26,431
Municipal securities	10,915		3,357		—		—		10,915		3,357
MBS	—		—		87,805		14,686		87,805		14,686
CMO	61,680		1,066		339,830		46,197		401,510		47,263
Asset-backed securities	64,037		1,999		6,250		550		70,287		2,549
Collateralized loan obligations	—		—		33,177		73		33,177		73
	$	190,008	$	11,719	$	631,666	$	82,640	$	821,674	$	94,359
HTM
MBS	$	—	$	—	$	26,435	$	6,719	$	26,435	$	6,719
CMO	—		—		28,659		4,927		28,659		4,927
Municipal securities	100,109		11,275		—		—		100,109		11,275
	$	100,109	$	11,275	$	55,094	$	11,646	$	155,203	$	22,921

	December 31, 2023
	Less Than 12 Months				12 Months or More				Totals
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
AFS
Corporate bonds	$	34,989	$	5,970	$	162,148	$	23,596	$	197,137	$	29,566
Municipal securities	6,792		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 securities	9,011		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 securities	7,845		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 133 and 142 at March 31, 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 March 31, 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.

The following table presents the activity in the ACL for AFS debt securities:

	Three Months ended March 31,
	2024		2023
ACL:
Beginning balance	$	—	$	—
Credit loss expense	—		885
ACL 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.

	March 31, 2024
	AFS				HTM
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	2,010	$	1,977	$	3,977	$	3,963
Due from one year to five years	45,060		45,423		447		443
Due from five years to ten years	199,462		177,121		20,060		19,570
Due after ten years	30,266		23,687		87,438		76,671
	276,798		248,208		111,922		100,647
MBS and CMO	774,254		719,186		66,740		55,094
Asset-backed securities	122,078		120,261		—		—
Collateralized loan obligations	78,672		78,613		—		—
	$	1,251,802	$	1,166,268	$	178,662	$	155,741

	December 31, 2023
	AFS				HTM
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	2,018	$	1,906	$	—	$	—
Due from one year to five years	46,645		46,682		4,445		4,448
Due from five years to ten years	188,526		163,397		12,806		12,628
Due after ten years	54,094		47,616		94,953		85,350
	291,283		259,601		112,204		102,426
MBS and CMO	757,907		706,507		68,199		57,595
Asset-backed securities	47,738		46,653		—		—
Collateralized loan obligations	64,250		63,878		—		—
	$	1,161,178	$	1,076,639	$	180,403	$	160,021

Proceeds from sales of debt securities AFS and gross gains and losses for the three months ended March 31, 2024 and 2023 were as follows:

	Three Months Ended March 31,
	2024		2023
Proceeds from sales	$	113,794	$	109,793
Gross realized losses	6,304		5,321

As of March 31, 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 March 31, 2024 and December 31, 2023.

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LHI and ACL

3 Months Ended

Mar. 31, 2024

Receivables [Abstract]

LHI and ACL

LHI and ACL

LHI in the accompanying consolidated balance sheets are summarized as follows:

	March 31, 2024		December 31, 2023
LHI, carried at amortized cost:
Real estate:
Construction and land	$	1,568,257	$	1,734,254
Farmland	30,979		31,114
1 - 4 family residential	969,401		937,119
Multi-family residential	751,607		605,817
OOCRE	788,376		794,088
NOOCRE	2,352,993		2,350,725
Commercial	2,785,987		2,752,063
MW	449,531		377,796
Consumer	8,882		10,149
	$	9,706,013	$	9,593,125
Deferred loan fees, net	(6,931)		(8,785)
ACL	(112,032)		(109,816)
Total LHI, net	$	9,587,050	$	9,474,524

Included in the total LHI, net, as of March 31, 2024 and December 31, 2023 was an accretable discount related to purchased performing and PCD loans acquired in the approximate amounts of $5,084 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 March 31, 2024 and December 31, 2023 is a discount on retained loans from sale of originated SBA and USDA loans of $8,512 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 $160,695 as of March 31, 2024. The remaining net purchase discount of $3,005 and $3,231 related to these 1-4 family residential loans purchased is included in the total LHI, net, as of March 31, 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:

	Three Months Ended March 31, 2024
	Construction and Land		Farmland		Residential		Multifamily		OOCRE		NOOCRE		Commercial		MW		Consumer		Total
Balance at beginning of the period	$	21,032	$	101	$	9,539	$	4,882	$	10,252	$	27,729	$	35,886	$	260	$	135	$	109,816
Credit loss expense non-PCD loans	(1,251)		6		1,978		1,457		47		11,653		(2,136)		144		42		11,940
Credit (benefit) loss expense PCD loans	—		—		(2)		—		(377)		(3,952)		(109)		—		—		(4,440)
Charge-offs	—		—		—		—		(120)		(4,293)		(946)		—		(71)		(5,430)
Recoveries	—		—		1		—		—		—		96		—		49		146
Ending Balance	$	19,781	$	107	$	11,516	$	6,339	$	9,802	$	31,137	$	32,791	$	404	$	155	$	112,032

	Three Months Ended March 31, 2023
	Construction and Land		Farmland		Residential		Multifamily		OOCRE		NOOCRE		Commercial		Consumer		Total
Balance at beginning of the period	$	13,120	$	127	$	9,533	$	2,607	$	8,707	$	26,704	$	30,142	$	112	$	91,052
Credit loss (benefit) expense non-PCD loans	4,240		41		12		877		238		(499)		2,995		363		8,267
Credit (benefit) loss expense PCD loans	(46)		—		(5)		—		(16)		33		267		—		233
Charge-offs	—		—		—		—		(116)		—		(1,051)		(62)		(1,229)
Recoveries	—		—		1		—		—		—		364		6		371
Ending Balance	$	17,314	$	168	$	9,541	$	3,484	$	8,813	$	26,238	$	32,717	$	419	$	98,694

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:

	March 31, 2024				December 31, 2023
	Real Property(1)		ACL Allocation		Real Property(1)		ACL Allocation
Construction and land	$	159	$	7	$	—	$	—
1 - 4 family residential	530		44		—		—
OOCRE	9,357		—		3,059		47
NOOCRE	9,344		—		21,169		—
Commercial	18,379		2,906		20,711		3,339
Total	$	37,769	$	2,957	$	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.

Nonaccrual loans aggregated by class of loans, as of March 31, 2024 and December 31, 2023, were as follows:

	March 31, 2024				December 31, 2023
	Nonaccrual		Nonaccrual With No ACL		Nonaccrual		Nonaccrual With No ACL
Construction and land	$	6,737	$	6,619	$	6,793	$	6,793
1 - 4 family residential	3,263		3,058		1,965		1,965
OOCRE	15,126		15,126		9,719		9,493
NOOCRE	22,366		11,866		33,479		33,479
Commercial	37,627		10,086		40,868		10,610
Consumer	21		21		24		24
Total	$	85,140	$	46,776	$	92,848	$	62,364

    There were $9,419 and $13,715 of PCD loans that are not accounted for on a pooled basis included in nonaccrual loans at March 31, 2024 and December 31, 2023, respectively.

    During the three months ended March 31, 2024 and 2023, interest income not recognized on nonaccrual loans was $781 and 772, respectively.

An age analysis of past due loans, aggregated by class of loans and including past due nonaccrual loans, as of March 31, 2024 and December 31, 2023, is as follows:

	March 31, 2024
	30 to 59 Days		60 to 89 Days		90 Days or Greater		Total Past Due		Total Current		Total Loans		Total 90 Days Past Due and Still Accruing
Real estate:
Construction and land	$	13,150	$	59	$	6,678	$	19,887	$	1,548,370	$	1,568,257	$	—
Farmland	—		—		—		—		30,979		30,979		—
1 - 4 family residential	2,352		459		2,159		4,970		964,431		969,401		—
Multi-family residential	—		—		—		—		751,607		751,607		—
OOCRE	1,826		—		15,346		17,172		771,204		788,376		220
NOOCRE	10,605		2,847		12,658		26,110		2,326,883		2,352,993		—
Commercial	427		3,075		9,963		13,465		2,772,522		2,785,987		—
MW	—		—		—		—		449,531		449,531		—
Consumer	11		—		—		11		8,871		8,882		—
Total	$	28,371	$	6,440	$	46,804	$	81,615	$	9,624,398	$	9,706,013	$	220

	December 31, 2023
	30 to 59 Days		60 to 89 Days		90 Days or Greater		Total Past Due		Total Current		Total 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 residential	4,359		2,535		3,691		10,585		926,534		937,119		1,726
Multi-family residential	15,095		—		—		15,095		590,722		605,817		—
OOCRE	916		114		10,185		11,215		782,873		794,088		466
NOOCRE	3,182		642		20,547		24,371		2,326,354		2,350,725		783
Commercial	3,485		1,394		9,122		14,001		2,738,062		2,752,063		—
MW	—		—		—		—		377,796		377,796		—
Consumer	76		—		—		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 three months ended March 31, 2024:

Loan Modifications Made to Borrowers Experiencing Financial Difficulty
	Interest Rate Reduction				Financial Impact
	Amortized Cost Basis		% of Loan Class
NOOCRE	$	28,441	1.2	%	Interest rate reduced longer than 3 months

	Term Extension
	Amortized Cost Basis		% of Loan Class		Financial Impact
Construction and land	$	2,000	0.1	%	Principal and interest payments deferred longer than three months

	Combination - Interest Rate Reduction and Term Extension
	Amortized Cost Basis		% of Loan Class		Financial Impact
NOOCRE	$	45,762	1.9	%	Principal payments deferred and interest rate reduced longer than three months
Commercial	6,336		0.2	%	Principal payments deferred and interest rate reduced longer than three months
	$	52,098

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
	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due
Construction and land	$	—	$	2,000	$	—	$	—
NOOCRE	84,190		9,343		—		—
Commercial	27,764		—		—		2,108
Total	$	111,954	$	11,343	$	—	$	2,108

The Company has not committed to lend additional amounts to customers with outstanding loans classified as Troubled Loan Modifications as of March 31, 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.

    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
	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
As of March 31, 2024
Construction and land:
Pass	$	32,907	$	100,050	$	788,951	$	372,550	$	34,954	$	6,324	$	205,423	$	—	$	1,541,159
Special mention	—		12,112		2,000		4,968		—		—		1,281		—		20,361
Substandard	—		—		6,706		—		31		—		—		—		6,737
Total construction and land	$	32,907	$	112,162	$	797,657	$	377,518	$	34,985	$	6,324	$	206,704	$	—	$	1,568,257
Construction and land gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Farmland:
Pass	$	132	$	2,517	$	4,372	$	—	$	17,863	$	4,927	$	1,168	$	—	$	30,979
Total farmland	$	132	$	2,517	$	4,372	$	—	$	17,863	$	4,927	$	1,168	$	—	$	30,979
Farmland gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
1 - 4 family residential:
Pass	$	18,518	$	77,907	$	139,311	$	209,626	$	82,714	$	288,540	$	114,455	$	17,236	$	948,307
Special mention	—		3,722		—		—		—		1,227		—		—		4,949
Substandard	—		—		861		852		50		12,739		529		—		15,031
PCD	—		—		—		—		—		1,114		—		—		1,114
Total 1 - 4 family residential	$	18,518	$	81,629	$	140,172	$	210,478	$	82,764	$	303,620	$	114,984	$	17,236	$	969,401
1-4 family residential gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Multi-family residential:
Pass	$	—	$	11,788	$	104,244	$	338,897	$	264,985	$	21,038	$	10,655	$	—	$	751,607
Total multi-family residential	$	—	$	11,788	$	104,244	$	338,897	$	264,985	$	21,038	$	10,655	$	—	$	751,607
Multi-family residential gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
OOCRE:
Pass	$	14,365	$	141,955	$	176,643	$	100,173	$	89,496	$	201,542	$	4,623	$	—	$	728,797
Special mention	—		5,446		468		4,030		1,405		15,926		210		—		27,485
Substandard	—		—		9,357		2,963		2,945		6,261		—		—		21,526
PCD	—		—		—		—		—		10,568		—		—		10,568
Total OOCRE	$	14,365	$	147,401	$	186,468	$	107,166	$	93,846	$	234,297	$	4,833	$	—	$	788,376
OOCRE gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	120	$	—	$	—	$	120
NOOCRE:
Pass	$	17,713	$	50,026	$	667,589	$	546,455	$	239,974	$	497,749	$	33,047	$	571	$	2,053,124
Special mention	—		—		57,088		27,217		28,614		135,930		—		—		248,849
Substandard	—		—		3,858		3,241		303		33,834		—		—		41,236
PCD	—		—		—		—		—		9,784		—		—		9,784
Total NOOCRE	$	17,713	$	50,026	$	728,535	$	576,913	$	268,891	$	677,297	$	33,047	$	571	$	2,352,993

NOOCRE gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	4,293	$	—	$	—	$	4,293
Commercial:
Pass	$	80,714	$	271,814	$	336,946	$	74,917	$	39,435	$	83,231	$	1,772,806	$	1,151	$	2,661,014
Special mention	—		2,544		13,057		12,221		75		6,008		14,184		25		48,114
Substandard	—		695		16,431		9,990		1,009		15,593		32,721		—		76,439
PCD	—		—		—		—		—		420		—		—		420
Total commercial	$	80,714	$	275,053	$	366,434	$	97,128	$	40,519	$	105,252	$	1,819,711	$	1,176	$	2,785,987
Commercial gross charge-offs	$	—	$	—	$	43	$	—	$	—	$	903	$	—	$	—	$	946
MW:
Pass	$	144	$	1,592	$	—	$	—	$	—	$	—	$	447,795	$	—	$	449,531
Total MW	$	144	$	1,592	$	—	$	—	$	—	$	—	$	447,795	$	—	$	449,531
MW gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Consumer:
Pass	$	604	$	3,141	$	866	$	251	$	552	$	1,678	$	1,628	$	—	$	8,720
Special mention	—		—		—		—		—		82		—		—		82
Substandard	—		—		2		—		—		67		—		—		69
PCD	—		—		—		—		—		11		—		—		11
Total consumer	$	604	$	3,141	$	868	$	251	$	552	$	1,838	$	1,628	$	—	$	8,882
Consumer gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	71	$	—	$	—	$	71
Total Pass	$	165,097	$	660,790	$	2,218,922	$	1,642,869	$	769,973	$	1,105,029	$	2,591,600	$	18,958	$	9,173,238
Total Special Mention	—		23,824		72,613		48,436		30,094		159,173		15,675		25		349,840
Total Substandard	—		695		37,215		17,046		4,338		68,494		33,250		—		161,038
Total PCD	—		—		—		—		—		21,897		—		—		21,897
Total	$	165,097	$	685,309	$	2,328,750	$	1,708,351	$	804,405	$	1,354,593	$	2,640,525	$	18,983	$	9,706,013
Current period gross charge-offs	$	—	$	—	$	43	$	—	$	—	$	5,387	$	—	$	—	$	5,430

1 Term loans amortized cost basis by origination year excludes $6,931 of deferred loan fees, net.

	Term Loans Amortized Cost Basis by Origination Year1
	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
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 mention	593		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	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
1 - 4 family residential:
Pass	$	73,289	$	140,824	$	193,914	$	79,767	$	38,589	$	270,193	$	114,275	$	17,255	$	928,106
Special mention	3,732		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 mention	5,481		—		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 mention	4,584		13,583		12,794		541		—		10,144		9,392		35		51,073
Substandard	640		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
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 Mention	14,390		33,846		46,238		31,174		70,577		101,508		12,279		35		310,047

Total Substandard	640		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 $586,583 and $571,611 as of March 31, 2024 and 2023, respectively. A summary of the changes in the related servicing assets are as follows:

	Three Months Ended March 31,
	2024		2023
Balance at beginning of period	$	13,258	$	14,880
Increase from loan sales	635		959
Servicing asset impairment, net recoveries	222		424
Amortization charged as a reduction to income	(1,493)		(1,015)
Balance at end of period	$	12,622	$	15,248

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 March 31, 2024 and 2023 there was a valuation allowance of $1,310 and $2,027, 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 March 31, 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 March 31,
	2024		2023
SBA LHI principal sold	$	13,233	$	6,340
Gain on sale of SBA LHI	1,176		148
USDA LHI principal sold	—		44,002
Gain on sale of USDA LHI	—		6,984

LHFS

The following table reflects LHFS.

	March 31, 2024		December 31, 2023
SBA/USDA construction and land	$	41,456	$	41,492
1 - 4 family residential	772		788
SBA OOCRE	3,976		16,758
NOOCRE	10,500		10,500
SBA commercial	8,058		9,534
Total LHFS	$	64,762	$	79,072

XML

Fair Value

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Fair Value

Fair Value

The following table summarizes assets measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

	March 31, 2024
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Financial Assets:
AFS debt securities	$	—	$	1,166,268	$	—	$	1,166,268
Equity securities with a readily determinable fair value	9,792		—		—		9,792
LHFS(1)	—		53,490		—		53,490
Interest rate swap designated as hedging instruments	—		14,370		—		14,370
Correspondent interest rate swaps not designated as hedging instruments	—		36,357		—		36,357
Customer interest rate swaps not designated as hedging instruments	—		941		—		941
Correspondent interest rate caps and collars not designated as hedging instruments	—		1,367		—		1,367
Financial Liabilities:
Interest rate swap designated as hedging instruments	$	—	$	50,431	$	—	$	50,431
Correspondent interest rate swaps not designated as hedging instruments	—		1,068		—		1,068
Customer interest rate swaps not designated as hedging instruments	—		35,755		—		35,755
Customer interest rate caps and collars not designated as hedging instruments	—		1,367		—		1,367

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 value	9,897		—		—		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 three months ended March 31, 2024 and December 31, 2023.

The following table summarizes assets measured at fair value on a non-recurring basis as of March 31, 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 March 31, 2024
Assets:
Collateral dependent loans with an ACL	$	—	$	—	$	13,160	$	13,160
Servicing assets with a valuation allowance	—		—		4,728		4,728
OREO	—		—		18,445		18,445
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 March 31, 2024, collateral dependent loans with an allowance had a recorded investment of $16,117, with $2,957 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 March 31, 2024, servicing assets of $6,038 had a valuation allowance totaling $1,310. At December 31, 2023, servicing assets of $8,214 had a valuation allowance totaling $1,532.

OREO primarily consists of five properties recorded with a fair value of approximately $18,445 at March 31, 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 March 31, 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 March 31, 2024 and December 31, 2023 were as follows:

			Fair Value
	Carrying Amount		Level 1		Level 2		Level 3
March 31, 2024
Financial assets:
Cash and cash equivalents	$	740,769	$	—	$	740,769	$	—
HTM debt securities	178,662		—		155,741		—
LHFS(1)	11,272		—		11,272		—
LHI(2)	9,573,890		—		—		9,409,404
Accrued interest receivable	51,476		—		51,476		—
BOLI	85,359		—		85,359		—
Servicing asset	7,894		—		7,894		—
Equity securities without a readily determinable fair value	38,194		N/A		N/A		N/A
FHLB and FRB stock	54,094		N/A		N/A		N/A
Financial liabilities:
Noninterest-bearing deposits	$	2,349,211	$	—	$	2,349,211	$	—
Interest-bearing deposits	8,304,609		—		8,147,449		—
Advances from FHLB	100,000		—		100,056		—
Accrued interest payable	33,200		—		33,200		—
Subordinated debentures and subordinated notes	230,034		—		230,034		—
December 31, 2023
Financial assets:
Cash and cash equivalents	$	629,063	$	—	$	629,063	$	—
HTM debt securities	180,403		—		160,021		—
LHFS(1)	11,288		—		11,288		—
LHI(2)	9,577,180		—		—		9,322,744
Accrued interest receivable	53,313		—		53,313		—
BOLI	84,833		—		84,833		—
Servicing asset	6,576		—		6,576		—
Equity securities without a readily determinable fair value	11,624		N/A		N/A		N/A
FHLB and FRB stock	53,699		N/A		N/A		N/A
Financial liabilities:
Noninterest-bearing deposits	$	2,218,036	$	—	$	2,218,036	$	—
Interest-bearing deposits	8,120,159		—		8,096,209		—
Advances from FHLB	100,000		—		100,051		—
Accrued interest payable	41,948		—		41,948		—
Subordinated debentures and subordinated notes	229,783		—		229,783		—

(1) LHFS primarily represent commercial loans moved to held for sale or mortgage LHFS that are carried at lower of cost or market.

(2) LHI includes MW and is carried at amortized cost.

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Derivative Financial Instruments

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

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

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 March 31, 2024 and December 31, 2023 are as shown in the table below.

	March 31, 2024						December 31, 2023
			Estimated Fair Value						Estimated Fair Value
	Notional Amount		Asset Derivative		Liability Derivative		Notional Amount		Asset Derivative		Liability Derivative
Derivatives designated as hedging instruments (cash flow hedges):
Interest rate swap on money market deposit account payments	$	250,000	$	11,047	$	—	$	250,000	$	12,208	$	—
Interest rate swaps on fixed rate advances/brokered CDs	200,000		—		1,286		200,000		—		4,296
Interest rate swaps on customer loan interest payments	375,000		—		45,237		375,000		—		40,055
Interest rate collars on customer loan interest payments	450,000		1,151		3,908		450,000		2,304		2,770
Interest rate floor on customer loan interest payments	200,000		2,172		—		200,000		4,302		—
Total derivatives designated as hedging instruments	$	1,475,000	$	14,370	$	50,431	$	1,475,000	$	18,814	$	47,121
Derivatives not designated as hedging instruments:
Financial institution counterparty:
Interest rate swaps	$	907,171	$	36,357	$	1,068	$	893,702	$	28,007	$	2,322
Interest rate caps and corridors	319,974		1,367		—		285,370		1,344		—
Commercial customer counterparty:
Interest rate swaps	907,171		941		35,755		893,702		2,118		27,288
Interest rate caps and corridors	319,974		—		1,367		285,370		—		1,344
Total derivatives not designated as hedging instruments	$	2,454,290	$	38,665	$	38,190	$	2,358,144	$	31,469	$	30,954
Offsetting derivative assets/liabilities	—		(33,531)		(33,531)		—		(29,463)		(29,463)
Total derivatives	$	3,929,290	$	19,504	$	55,090	$	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 months ended March 31, 2024 and 2023 were as follows.

	For the Three Months Ended March 31, 2024						For the Three Months Ended March 31, 2023
	(Loss) gain recognized in other comprehensive income on derivative		Gain (loss) reclassified from accumulated other comprehensive income into income		Location of (loss) gain reclassified from accumulated other comprehensive income into income		(Loss) gain recognized in other comprehensive income on derivative		Gain (loss) reclassified from accumulated other comprehensive income into income		Location 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		$	(1,082)	$	1,082	Interest Expense
Interest rate swap on money market deposit account payments	1,849		3,439		Interest Expense		(3,977)		2,568		Interest Expense
Interest rate swaps, collars and floors on customer loan interest payments	(9,250)		(5,369)		Interest Income		12,136		(3,807)		Interest Income
Total	$	(8,495)	$	(836)			$	7,077	$	(157)
					Net gain recognized in other noninterest income						Net gain recognized in other noninterest income
Derivatives not designated as hedging instruments:
Interest rate swaps, caps and collars					$	449					$	212

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.

The following is a summary of the interest rate swaps, caps and collars outstanding as of March 31, 2024 and December 31, 2023.

	March 31, 2024
	Notional Amount		Fixed Rate	Floating Rate	Maturity	Fair Value
Non-hedging derivative instruments:
Customer interest rate derivative:
Interest rate swaps - receive fixed/pay floating	$	907,171	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. 3.9 years	$	(34,815)
Interest rate caps and corridors	$	319,974	3.50% - 7.50%	SOFR CME 1 month + 0.0% - 3% SOFR + 0.0%	Wtd. Avg. 0.5 years	$	(1,367)
Correspondent interest rate derivative:
Interest rate swaps - pay fixed/receive floating	$	907,171	2.41% - 7.37%	LIBOR 1 month + 3.0% SOFR CME 1 month + 0.0% - 3.8% SOFR-NYFD 30 day avg + 2.5% - 3.0%	Wtd. Avg. 3.9 years	$	35,288
Interest rate caps and corridors	$	319,974	3.50% - 7.50%	SOFR CME 1 month + 0.0% - 3.0% SOFR + 0.0%	Wtd. Avg. 0.5 years	$	1,367
	December 31, 2023
	Notional Amount		Fixed Rate	Floating Rate	Maturity	Fair 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% + 3.0% 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% - 3% SOFR + 0.0%	Wtd. Avg. 0.8 years	$	1,344

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OBS Loan Commitments

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

OBS Loan Commitments

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 March 31, 2024 and December 31, 2023:

	March 31,		December 31,
	2024		2023
Commitments to extend credit	$	2,834,310	$	3,083,501
MW commitments	794,470		803,704
Standby and commercial letters of credit	113,405		111,590
Total	$	3,742,185	$	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 March 31,
	2024		2023
Beginning balance for ACL on unfunded commitments	$	8,045	$	10,086
(Benefit) provision for credit losses on unfunded commitments	(1,541)		1,497
Ending balance of ACL on unfunded commitments	$	6,504	$	11,583

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Stock-Based Awards

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

Stock-Based Awards

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 months ended March 31, 2024 and 2023.

A summary of option activity under the 2010 Incentive Plan for the three months ended March 31, 2024 and 2023, and changes during the periods then ended, is presented below:

	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, 2023	1,000	$	10.43	1.07 years
Exercised	(1,000)	10.43
Outstanding and exercisable at March 31, 2023	—	$	—	—	$	—

A summary of the fair value of the Company’s stock options exercised under the 2010 Incentive Plan for the three months ended March 31, 2024 and 2023 is presented below:

	Fair Value of Options Exercised as of March 31,
	2024		2023
Nonperformance-based stock options exercised	$	—	$	16

2022 Equity Plan, Veritex (Green) 2014 Plan and Green 2010 Plan

Grants of RSU

    During the three months ending March 31, 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 three months ending March 31, 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 March 31,
	2024		2023
2022 Equity Plan	$	2,459	$	2,465
Veritex (Green) 2014 Plan	430		422

2022 Equity Plan

A summary of the status of the Company’s stock options under the 2022 Equity Plan as of March 31, 2024 and 2023, and changes during the three 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, 2023	657,494	$	24.47
Forfeited	(1,666)	17.38
Cancelled	(3,804)	29.13
Exercised	(3,951)	21.38
Outstanding at March 31, 2023	648,073	$	24.48	5.24 years
Options exercisable at March 31, 2023	610,073	$	24.74	5.13 years
Outstanding at January 1, 2024	602,573	$	24.40
Outstanding at March 31, 2024	602,573	$	24.40	4.59 years	$	215,379
Options exercisable at March 31, 2024	602,573	$	24.40	4.59 years	$	215,379

There was no unrecognized compensation expense related to options awarded under the 2022 Equity Plan as of March 31, 2024 and December 31, 2023. As of March 31, 2023, there $122 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 March 31, 2024 and 2023, and changes during the three months then ended, is as follows:

	2022 Equity Plan
	Non-performance-Based
	RSUs
	Units	Weighted Average Grant Date Fair Value
Outstanding at January 1, 2023	955,104	$	28.38
Granted	224,165	27.90
Vested into shares	(162,952)	30.23
Forfeited	(16,394)	31.77
Outstanding at March 31, 2023	999,923	$	27.87
Outstanding at January 1, 2024	948,513	$	27.52
Granted	190,018	21.94
Vested into shares	(159,113)	29.87
Forfeited	(4,700)	30.73
Outstanding at March 31, 2024	974,718	$	26.03

A summary of the status of the Company’s PSUs under the 2022 Equity Plan as of March 31, 2024 and 2023, and changes during the three months then ended, is as follows:

	2022 Equity Plan
	Performance-Based
	PSUs
	Units	Weighted Average Grant Date Fair Value
Outstanding at January 1, 2023	126,707	$	31.19
Granted	53,310	27.55
Vested into shares	(41,781)	26.42
Outstanding at March 31, 2023	129,768	$	30.28
Outstanding at January 1, 2024	129,786	$	30.28
Granted	113,144	18.84
Vested into shares	(56,729)	25.94
Outstanding at March 31, 2024	186,201	$	25.01

As of March 31, 2024, December 31, 2023 and March 31, 2023, there was $18,421, $14,692 and $15,278 of total unrecognized compensation related to RSUs and PSUs awarded under the 2022 Equity Plan, respectively. The unrecognized compensation expense at March 31, 2024 is expected to be recognized over the remaining weighted average requisite service period of 2.60 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 three months ended March 31, 2024 and 2023 is presented below:

	Fair Value of Options Exercised or RSUs Vested in the Three Months Ended March 31,
	2024		2023
Non-performance-based stock options exercised	$	—	$	31
RSUs vested	3,057		3,044
PSUs vested	1,133		1,070

Veritex (Green) 2014 Plan

A summary of the status of the Company’s stock options under the Veritex (Green) 2014 Plan as of March 31, 2024 and 2023, and changes during the three 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, 2023	155,212	$	19.83
Cancelled	(505)	21.38
Exercised	(13,266)	21.38
Outstanding at March 31, 2023	141,441	$	21.86	4.87 years
Options exercisable at March 31, 2023	141,441	$	21.86	4.87 years
Outstanding at January 1, 2024	124,499	$	22.00
Outstanding at March 31, 2024	124,499	$	22.00	3.46 years	$	391,054
Options exercisable at March 31, 2024	124,499	$	22.00	3.46 years	$	391,054
Weighted average fair value of options granted during the period		$	—

As of March 31, 2024, December 31, 2023 and March 31, 2023 there was no unrecognized compensation expense related to options awarded under the Veritex (Green) 2014 Plan.

A summary of the status of the Company’s RSUs under the Veritex (Green) 2014 Plan as of March 31, 2024 and 2023 and changes during the three months then ended, is as follows:

	Veritex (Green) 2014 Plan
	Non-performance-Based
	RSUs
	Units	Weighted Average Grant Date Fair Value
Outstanding at January 1, 2023	86,233	$	21.09
Vested into shares	(19,282)	29.66
Forfeited	(2,232)	29.13
Outstanding at March 31, 2023	64,719	$	18.26
Outstanding at January 1, 2024	64,719	$	18.26
Vested into shares	(3,308)	32.20
Outstanding at March 31, 2024	61,411	$	17.51

A summary of the status of the Company’s PSUs under the Veritex (Green) 2014 Plan as of March 31, 2024 and 2023 and changes during the three months then ended, is as follows:

	Veritex (Green) 2014 Plan
	Performance-Based
	PSUs
	Units	Weighted Average Grant Date Fair Value
Outstanding at January 1, 2023	19,173	$	30.74
Vested into shares	(8,531)	25.94
Outstanding at March 31, 2023	10,642	$	31.93
Outstanding at January 1, 2024	10,642	$	31.93
Granted	1,246	18.84
Vested into shares	(7,477)	25.94
Outstanding at March 31, 2024	4,411	$	40.38

As of March 31, 2024, December 31, 2023 and March 31, 2023, there was $1,383, $1,781, and $3,260, 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 1.12 years.

    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 three months ended March 31, 2024 and 2023 presented below:

	Fair Value of Options Exercised or RSUs Vested in the Three Months Ended March 31,
	2024		2023
Non-performance-based stock options exercised	$	—	$	18
RSUs vested	326		1,990
PSU vested	149		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 March 31, 2024 and 2023, and changes during the three 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, 2023	43,162	$	13.11
Exercised	(29,630)	13.22
Outstanding at March 31, 2023	13,532	$	12.86	3.94 years
Outstanding at January 1, 2024	10,784	$	12.65
Outstanding at March 31, 2024	10,784	$	12.65	3.82 years	$	85

A summary of the fair value of the Company’s stock options exercised under the Green 2010 Plan during the three months ended March 31, 2024 and 2023 presented below:

	Fair Value of Options Exercised as of March 31,
	2024		2023
Nonperformance-based stock options exercised	$	—	$	365

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Income Taxes

3 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

    Income tax expense for the three months ended March 31, 2024 and 2023 was as follows:

	Three Months Ended March 31,
	2024			2023
Income tax expense for the period	$	7,237		$	11,012
Effective tax rate	23.1		%	22.3		%

For the three months ended March 31, 2024, the Company had an effective tax rate of 23.1%. The Company had a net discrete tax expense of $384 thousand associated with the recognition of an excess tax expense realized on share-based payment awards during the three months ended March 31, 2024. Excluding this discrete tax item, the Company had an effective tax rate of 21.8% for the three months ended March 31, 2024.

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 as of March 31, 2024. The deferred tax asset is not realizable due to the capital loss that will not be recognized. The position was upheld as of March 31, 2024. There was no valuation allowance in the comparable period in 2023.

For the three months ended March 31, 2023, the Company had an effective tax rate of 22.3%. The Company had a net discrete tax expense of $112 thousand associated with the recognition of an excess tax expense realized on share-based payment awards during the three months ended March 31, 2023. Excluding this discrete tax item, the Company had an effective tax rate of 22.1% for the three months ended March 31, 2023.

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Legal Contingencies

3 Months Ended

Mar. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

Legal Contingencies

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.

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Capital Requirements and Restrictions on Retained Earnings

3 Months Ended

Mar. 31, 2024

Regulatory Capital Requirements under Banking Regulations [Abstract]

Capital Requirements and Restrictions on Retained Earnings

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.

As of March 31, 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 March 31, 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
	Amount		Ratio		Amount		Ratio		Amount		Ratio
As of March 31, 2024
Total capital (to RWA)
Company	$	1,520,656	13.33	%	$	912,622	8.0	%	n/a		n/a
Bank	1,475,046		12.98		909,119		8.0		$	1,136,399	10.0
Tier 1 capital (to RWA)
Company	1,212,512		10.63		684,391		6.0		n/a		n/a
Bank	1,365,973		12.02		681,850		6.0		909,133		8.0
CET1 (to RWA)
Company	1,182,567		10.37		513,168		4.5		n/a		n/a
Bank	1,365,973		12.02		511,388		4.5		738,671		6.5
Tier 1 capital (to average assets)
Company	1,212,512		10.12		479,254		4.0		n/a		n/a
Bank	1,365,973		11.41		478,869		4.0		598,586		5.0
As of December 31, 2023
Total capital (to RWA)
Company	$	1,500,703	13.18	%	$	910,897	8.0	%	n/a		n/a
Bank	1,467,960		12.90		910,363		8.0		$	1,137,953	10.0	%
Tier 1 capital (to RWA)
Company	1,202,252		10.56		683,098		6.0		n/a		n/a
Bank	1,368,384		12.03		682,486		6.0		909,981		8.0
CET1 (to RWA)
Company	1,172,362		10.29		512,695		4.5		n/a		n/a
Bank	1,368,384		12.03		511,864		4.5		739,360		6.5
Tier 1 capital (to average assets)
Company	1,202,252		10.03		479,462		4.0		n/a		n/a
Bank	1,368,384		11.43		478,875		4.0		598,593		5.0

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 $27,500 were paid by the Bank to the Holdco during the three months ending March 31, 2024. There were no dividends paid by the Bank to the Holdco during the three months ended March 31, 2023.

Dividends of $10,899, or $0.20 per issued and outstanding share of the the Company’s common stock and $10,837, or $0.20, per outstanding share of the Company’s common stock were paid by the Company during the three months ended March 31, 2024 and 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 4.98% as of March 31, 2024.

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Operations and Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Basis of Presentation

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 March 31, 2024 and December 31, 2023, consolidated statements of income, consolidated statements of comprehensive income (loss) and consolidated changes in stockholders’ equity for the three months ended March 31, 2024 and 2023 and consolidated statements of cash flows for the three months ended March 31, 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.

EPS

EPS

EPS is based upon the weighted average shares outstanding.

Recent Accounting Pronouncements

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 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.

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Operations and Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Schedule of Reconciliation Between Weighted Average Shares Used for Calculating Basic and Diluted EPS

The table below sets forth the reconciliation between weighted average shares used for calculating basic and diluted EPS for the three months ended March 31, 2024 and 2023:

	Three Months Ended March 31,
	2024		2023
Numerator:
Net income	$	24,156	$	38,411
Denominator:
Weighted average shares outstanding for basic EPS	54,444		54,149
Dilutive effect of employee stock-based awards	398		457
Adjusted weighted average shares outstanding	54,842		54,606
EPS:
Basic	$	0.44	$	0.71
Diluted	$	0.44	$	0.70
Antidilutive shares	1,127		834

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Supplemental Statement of Cash Flows (Tables)

3 Months Ended

Mar. 31, 2024

Supplemental Cash Flow Elements [Abstract]

Schedule of Other Supplemental Cash Flow Information

Other supplemental cash flow information is presented below:

	Three Months Ended March 31,
	2024		2023
	(in thousands)
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest	$	98,354	$	54,189
Cash paid for income taxes	—		—

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Securities (Tables)

3 Months Ended

Mar. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Schedule of Gross Unrealized Loss Recognized on Equity Securities

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 March 31,
	2024		2023
Unrealized (loss) gain recognized on equity securities with a readily determinable fair value	$	(105)	$	126

Schedule of Carrying Amount and Approximate Fair Values of Available-for-Sale Securities

The amortized cost, related gross unrealized gains and losses, ACL and the fair value of AFS and HTM debt securities are as follows:

	March 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		ACL		Fair Value
AFS
Corporate bonds	$	262,526	$	1,198	$	26,431	$	—	$	237,293
Municipal securities	14,272		—		3,357		—		10,915
MBS	199,632		3,361		14,686		—		188,307
CMO	574,622		3,520		47,263		—		530,879
Asset-backed securities	122,078		732		2,549		—		120,261
Collateralized loan obligations	78,672		14		73		—		78,613
	$	1,251,802	$	8,825	$	94,359	$	—	$	1,166,268
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		ACL		Fair Value
HTM
MBS	$	33,154	$	—	$	6,719	$	—	$	26,435
CMO	33,586		—		4,927		—		28,659
Municipal securities	111,922		7		11,282		—		100,647
	$	178,662	$	7	$	22,928	$	—	$	155,741

	December 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		ACL		Fair Value
AFS
Corporate bonds	$	244,652	$	1,034	$	29,566	$	—	$	216,120
Municipal securities	46,631		108		3,258		—		43,481
MBS	194,486		4,430		13,465		—		185,451
CMO	563,421		4,634		46,999		—		521,056
Asset-backed securities	47,738		1,045		2,130		—		46,653
Collateralized loan obligations	64,250		—		372		—		63,878
	$	1,161,178	$	11,251	$	95,790	$	—	$	1,076,639
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		ACL		Fair Value
HTM
MBS	$	33,716	$	—	$	6,037	$	—	$	27,679
CMO	34,483		—		4,567		—		29,916
Municipal securities	112,204		86		9,864		—		102,426
	$	180,403	$	86	$	20,468	$	—	$	160,021

Schedule of Investment Securities That Have Been in a Continuous Unrealized Loss Position

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:

	March 31, 2024
	Less Than 12 Months				12 Months or More				Totals
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
AFS
Corporate bonds	$	53,376	$	5,297	$	164,604	$	21,134	$	217,980	$	26,431
Municipal securities	10,915		3,357		—		—		10,915		3,357
MBS	—		—		87,805		14,686		87,805		14,686
CMO	61,680		1,066		339,830		46,197		401,510		47,263
Asset-backed securities	64,037		1,999		6,250		550		70,287		2,549
Collateralized loan obligations	—		—		33,177		73		33,177		73
	$	190,008	$	11,719	$	631,666	$	82,640	$	821,674	$	94,359
HTM
MBS	$	—	$	—	$	26,435	$	6,719	$	26,435	$	6,719
CMO	—		—		28,659		4,927		28,659		4,927
Municipal securities	100,109		11,275		—		—		100,109		11,275
	$	100,109	$	11,275	$	55,094	$	11,646	$	155,203	$	22,921

	December 31, 2023
	Less Than 12 Months				12 Months or More				Totals
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
AFS
Corporate bonds	$	34,989	$	5,970	$	162,148	$	23,596	$	197,137	$	29,566
Municipal securities	6,792		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 securities	9,011		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 securities	7,845		270		79,713		9,594		87,558		9,864
	$	7,845	$	270	$	137,308	$	20,198	$	145,153	$	20,468

Schedule of Activity in Allowance for Credit Loss

The following table presents the activity in the ACL for AFS debt securities:

	Three Months ended March 31,
	2024		2023
ACL:
Beginning balance	$	—	$	—
Credit loss expense	—		885
ACL ending balance	$	—	$	885

Schedule of Amortized Costs and Estimated Fair Values of Securities Available for Sale, By Contractual Maturity

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.

	March 31, 2024
	AFS				HTM
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	2,010	$	1,977	$	3,977	$	3,963
Due from one year to five years	45,060		45,423		447		443
Due from five years to ten years	199,462		177,121		20,060		19,570
Due after ten years	30,266		23,687		87,438		76,671
	276,798		248,208		111,922		100,647
MBS and CMO	774,254		719,186		66,740		55,094
Asset-backed securities	122,078		120,261		—		—
Collateralized loan obligations	78,672		78,613		—		—
	$	1,251,802	$	1,166,268	$	178,662	$	155,741

	December 31, 2023
	AFS				HTM
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	2,018	$	1,906	$	—	$	—
Due from one year to five years	46,645		46,682		4,445		4,448
Due from five years to ten years	188,526		163,397		12,806		12,628
Due after ten years	54,094		47,616		94,953		85,350
	291,283		259,601		112,204		102,426
MBS and CMO	757,907		706,507		68,199		57,595
Asset-backed securities	47,738		46,653		—		—
Collateralized loan obligations	64,250		63,878		—		—
	$	1,161,178	$	1,076,639	$	180,403	$	160,021

Schedule of Proceeds From Sales of Debt Securities AFS and Gross Gains and Losses

Proceeds from sales of debt securities AFS and gross gains and losses for the three months ended March 31, 2024 and 2023 were as follows:

	Three Months Ended March 31,
	2024		2023
Proceeds from sales	$	113,794	$	109,793
Gross realized losses	6,304		5,321

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LHI and ACL (Tables)

3 Months Ended

Mar. 31, 2024

Receivables [Abstract]

Summary of Loans in the Accompanying Consolidated Balance Sheets

LHI in the accompanying consolidated balance sheets are summarized as follows:

	March 31, 2024		December 31, 2023
LHI, carried at amortized cost:
Real estate:
Construction and land	$	1,568,257	$	1,734,254
Farmland	30,979		31,114
1 - 4 family residential	969,401		937,119
Multi-family residential	751,607		605,817
OOCRE	788,376		794,088
NOOCRE	2,352,993		2,350,725
Commercial	2,785,987		2,752,063
MW	449,531		377,796
Consumer	8,882		10,149
	$	9,706,013	$	9,593,125
Deferred loan fees, net	(6,931)		(8,785)
ACL	(112,032)		(109,816)
Total LHI, net	$	9,587,050	$	9,474,524

Schedule of Activity in Allowance for Credit Loss

The activity in the ACL related to LHI is as follows:

	Three Months Ended March 31, 2024
	Construction and Land		Farmland		Residential		Multifamily		OOCRE		NOOCRE		Commercial		MW		Consumer		Total
Balance at beginning of the period	$	21,032	$	101	$	9,539	$	4,882	$	10,252	$	27,729	$	35,886	$	260	$	135	$	109,816
Credit loss expense non-PCD loans	(1,251)		6		1,978		1,457		47		11,653		(2,136)		144		42		11,940
Credit (benefit) loss expense PCD loans	—		—		(2)		—		(377)		(3,952)		(109)		—		—		(4,440)
Charge-offs	—		—		—		—		(120)		(4,293)		(946)		—		(71)		(5,430)
Recoveries	—		—		1		—		—		—		96		—		49		146
Ending Balance	$	19,781	$	107	$	11,516	$	6,339	$	9,802	$	31,137	$	32,791	$	404	$	155	$	112,032

	Three Months Ended March 31, 2023
	Construction and Land		Farmland		Residential		Multifamily		OOCRE		NOOCRE		Commercial		Consumer		Total
Balance at beginning of the period	$	13,120	$	127	$	9,533	$	2,607	$	8,707	$	26,704	$	30,142	$	112	$	91,052
Credit loss (benefit) expense non-PCD loans	4,240		41		12		877		238		(499)		2,995		363		8,267
Credit (benefit) loss expense PCD loans	(46)		—		(5)		—		(16)		33		267		—		233
Charge-offs	—		—		—		—		(116)		—		(1,051)		(62)		(1,229)
Recoveries	—		—		1		—		—		—		364		6		371
Ending Balance	$	17,314	$	168	$	9,541	$	3,484	$	8,813	$	26,238	$	32,717	$	419	$	98,694

Schedule of Amortized Cost Basis of Collateral Dependent Loans

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:

	March 31, 2024				December 31, 2023
	Real Property(1)		ACL Allocation		Real Property(1)		ACL Allocation
Construction and land	$	159	$	7	$	—	$	—
1 - 4 family residential	530		44		—		—
OOCRE	9,357		—		3,059		47
NOOCRE	9,344		—		21,169		—
Commercial	18,379		2,906		20,711		3,339
Total	$	37,769	$	2,957	$	44,939	$	3,386

(1) Loans reported exclude PCD loans that transitioned upon adoption of ASC 326 and accounted for on a pooled basis.

Schedule of Non-Accrual Loans

Nonaccrual loans aggregated by class of loans, as of March 31, 2024 and December 31, 2023, were as follows:

	March 31, 2024				December 31, 2023
	Nonaccrual		Nonaccrual With No ACL		Nonaccrual		Nonaccrual With No ACL
Construction and land	$	6,737	$	6,619	$	6,793	$	6,793
1 - 4 family residential	3,263		3,058		1,965		1,965
OOCRE	15,126		15,126		9,719		9,493
NOOCRE	22,366		11,866		33,479		33,479
Commercial	37,627		10,086		40,868		10,610
Consumer	21		21		24		24
Total	$	85,140	$	46,776	$	92,848	$	62,364

Schedule of Age Analysis of Past Due Loans, Aggregated by Class of Loans

An age analysis of past due loans, aggregated by class of loans and including past due nonaccrual loans, as of March 31, 2024 and December 31, 2023, is as follows:

	March 31, 2024
	30 to 59 Days		60 to 89 Days		90 Days or Greater		Total Past Due		Total Current		Total Loans		Total 90 Days Past Due and Still Accruing
Real estate:
Construction and land	$	13,150	$	59	$	6,678	$	19,887	$	1,548,370	$	1,568,257	$	—
Farmland	—		—		—		—		30,979		30,979		—
1 - 4 family residential	2,352		459		2,159		4,970		964,431		969,401		—
Multi-family residential	—		—		—		—		751,607		751,607		—
OOCRE	1,826		—		15,346		17,172		771,204		788,376		220
NOOCRE	10,605		2,847		12,658		26,110		2,326,883		2,352,993		—
Commercial	427		3,075		9,963		13,465		2,772,522		2,785,987		—
MW	—		—		—		—		449,531		449,531		—
Consumer	11		—		—		11		8,871		8,882		—
Total	$	28,371	$	6,440	$	46,804	$	81,615	$	9,624,398	$	9,706,013	$	220

	December 31, 2023
	30 to 59 Days		60 to 89 Days		90 Days or Greater		Total Past Due		Total Current		Total 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 residential	4,359		2,535		3,691		10,585		926,534		937,119		1,726
Multi-family residential	15,095		—		—		15,095		590,722		605,817		—
OOCRE	916		114		10,185		11,215		782,873		794,088		466
NOOCRE	3,182		642		20,547		24,371		2,326,354		2,350,725		783
Commercial	3,485		1,394		9,122		14,001		2,738,062		2,752,063		—
MW	—		—		—		—		377,796		377,796		—
Consumer	76		—		—		76		10,073		10,149		—
Total	$	56,492	$	4,685	$	50,338	$	111,515	$	9,481,610	$	9,593,125	$	2,975

Schedule of Loans Modified as TDRs

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 three months ended March 31, 2024:

Loan Modifications Made to Borrowers Experiencing Financial Difficulty
	Interest Rate Reduction				Financial Impact
	Amortized Cost Basis		% of Loan Class
NOOCRE	$	28,441	1.2	%	Interest rate reduced longer than 3 months

	Term Extension
	Amortized Cost Basis		% of Loan Class		Financial Impact
Construction and land	$	2,000	0.1	%	Principal and interest payments deferred longer than three months

	Combination - Interest Rate Reduction and Term Extension
	Amortized Cost Basis		% of Loan Class		Financial Impact
NOOCRE	$	45,762	1.9	%	Principal payments deferred and interest rate reduced longer than three months
Commercial	6,336		0.2	%	Principal payments deferred and interest rate reduced longer than three months
	$	52,098

The following table depicts the performance of loans that have been modified in the last 12 months:

Payment Status
	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due
Construction and land	$	—	$	2,000	$	—	$	—
NOOCRE	84,190		9,343		—		—
Commercial	27,764		—		—		2,108
Total	$	111,954	$	11,343	$	—	$	2,108

Summary of Internal Ratings of Loans, Including Purchased Credit Impaired Loans

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
	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
As of March 31, 2024
Construction and land:
Pass	$	32,907	$	100,050	$	788,951	$	372,550	$	34,954	$	6,324	$	205,423	$	—	$	1,541,159
Special mention	—		12,112		2,000		4,968		—		—		1,281		—		20,361
Substandard	—		—		6,706		—		31		—		—		—		6,737
Total construction and land	$	32,907	$	112,162	$	797,657	$	377,518	$	34,985	$	6,324	$	206,704	$	—	$	1,568,257
Construction and land gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Farmland:
Pass	$	132	$	2,517	$	4,372	$	—	$	17,863	$	4,927	$	1,168	$	—	$	30,979
Total farmland	$	132	$	2,517	$	4,372	$	—	$	17,863	$	4,927	$	1,168	$	—	$	30,979
Farmland gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
1 - 4 family residential:
Pass	$	18,518	$	77,907	$	139,311	$	209,626	$	82,714	$	288,540	$	114,455	$	17,236	$	948,307
Special mention	—		3,722		—		—		—		1,227		—		—		4,949
Substandard	—		—		861		852		50		12,739		529		—		15,031
PCD	—		—		—		—		—		1,114		—		—		1,114
Total 1 - 4 family residential	$	18,518	$	81,629	$	140,172	$	210,478	$	82,764	$	303,620	$	114,984	$	17,236	$	969,401
1-4 family residential gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Multi-family residential:
Pass	$	—	$	11,788	$	104,244	$	338,897	$	264,985	$	21,038	$	10,655	$	—	$	751,607
Total multi-family residential	$	—	$	11,788	$	104,244	$	338,897	$	264,985	$	21,038	$	10,655	$	—	$	751,607
Multi-family residential gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
OOCRE:
Pass	$	14,365	$	141,955	$	176,643	$	100,173	$	89,496	$	201,542	$	4,623	$	—	$	728,797
Special mention	—		5,446		468		4,030		1,405		15,926		210		—		27,485
Substandard	—		—		9,357		2,963		2,945		6,261		—		—		21,526
PCD	—		—		—		—		—		10,568		—		—		10,568
Total OOCRE	$	14,365	$	147,401	$	186,468	$	107,166	$	93,846	$	234,297	$	4,833	$	—	$	788,376
OOCRE gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	120	$	—	$	—	$	120
NOOCRE:
Pass	$	17,713	$	50,026	$	667,589	$	546,455	$	239,974	$	497,749	$	33,047	$	571	$	2,053,124
Special mention	—		—		57,088		27,217		28,614		135,930		—		—		248,849
Substandard	—		—		3,858		3,241		303		33,834		—		—		41,236
PCD	—		—		—		—		—		9,784		—		—		9,784
Total NOOCRE	$	17,713	$	50,026	$	728,535	$	576,913	$	268,891	$	677,297	$	33,047	$	571	$	2,352,993

NOOCRE gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	4,293	$	—	$	—	$	4,293
Commercial:
Pass	$	80,714	$	271,814	$	336,946	$	74,917	$	39,435	$	83,231	$	1,772,806	$	1,151	$	2,661,014
Special mention	—		2,544		13,057		12,221		75		6,008		14,184		25		48,114
Substandard	—		695		16,431		9,990		1,009		15,593		32,721		—		76,439
PCD	—		—		—		—		—		420		—		—		420
Total commercial	$	80,714	$	275,053	$	366,434	$	97,128	$	40,519	$	105,252	$	1,819,711	$	1,176	$	2,785,987
Commercial gross charge-offs	$	—	$	—	$	43	$	—	$	—	$	903	$	—	$	—	$	946
MW:
Pass	$	144	$	1,592	$	—	$	—	$	—	$	—	$	447,795	$	—	$	449,531
Total MW	$	144	$	1,592	$	—	$	—	$	—	$	—	$	447,795	$	—	$	449,531
MW gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Consumer:
Pass	$	604	$	3,141	$	866	$	251	$	552	$	1,678	$	1,628	$	—	$	8,720
Special mention	—		—		—		—		—		82		—		—		82
Substandard	—		—		2		—		—		67		—		—		69
PCD	—		—		—		—		—		11		—		—		11
Total consumer	$	604	$	3,141	$	868	$	251	$	552	$	1,838	$	1,628	$	—	$	8,882
Consumer gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	71	$	—	$	—	$	71
Total Pass	$	165,097	$	660,790	$	2,218,922	$	1,642,869	$	769,973	$	1,105,029	$	2,591,600	$	18,958	$	9,173,238
Total Special Mention	—		23,824		72,613		48,436		30,094		159,173		15,675		25		349,840
Total Substandard	—		695		37,215		17,046		4,338		68,494		33,250		—		161,038
Total PCD	—		—		—		—		—		21,897		—		—		21,897
Total	$	165,097	$	685,309	$	2,328,750	$	1,708,351	$	804,405	$	1,354,593	$	2,640,525	$	18,983	$	9,706,013
Current period gross charge-offs	$	—	$	—	$	43	$	—	$	—	$	5,387	$	—	$	—	$	5,430

1 Term loans amortized cost basis by origination year excludes $6,931 of deferred loan fees, net.

	Term Loans Amortized Cost Basis by Origination Year1
	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
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 mention	593		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	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
1 - 4 family residential:
Pass	$	73,289	$	140,824	$	193,914	$	79,767	$	38,589	$	270,193	$	114,275	$	17,255	$	928,106
Special mention	3,732		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 mention	5,481		—		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 mention	4,584		13,583		12,794		541		—		10,144		9,392		35		51,073
Substandard	640		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
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 Mention	14,390		33,846		46,238		31,174		70,577		101,508		12,279		35		310,047

Total Substandard	640		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.

Schedule of Summary of Changes in Servicing Assets

A summary of the changes in the related servicing assets are as follows:

	Three Months Ended March 31,
	2024		2023
Balance at beginning of period	$	13,258	$	14,880
Increase from loan sales	635		959
Servicing asset impairment, net recoveries	222		424
Amortization charged as a reduction to income	(1,493)		(1,015)
Balance at end of period	$	12,622	$	15,248

Schedule of Loans Held-for-Sale, Principal Sold

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 March 31,
	2024		2023
SBA LHI principal sold	$	13,233	$	6,340
Gain on sale of SBA LHI	1,176		148
USDA LHI principal sold	—		44,002
Gain on sale of USDA LHI	—		6,984

Schedule of Loans Held-for-Sale

The following table reflects LHFS.

	March 31, 2024		December 31, 2023
SBA/USDA construction and land	$	41,456	$	41,492
1 - 4 family residential	772		788
SBA OOCRE	3,976		16,758
NOOCRE	10,500		10,500
SBA commercial	8,058		9,534
Total LHFS	$	64,762	$	79,072

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Fair Value (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Schedule of Assets Measured at Fair Value on a Recurring Basis

The following table summarizes assets measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

	March 31, 2024
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Financial Assets:
AFS debt securities	$	—	$	1,166,268	$	—	$	1,166,268
Equity securities with a readily determinable fair value	9,792		—		—		9,792
LHFS(1)	—		53,490		—		53,490
Interest rate swap designated as hedging instruments	—		14,370		—		14,370
Correspondent interest rate swaps not designated as hedging instruments	—		36,357		—		36,357
Customer interest rate swaps not designated as hedging instruments	—		941		—		941
Correspondent interest rate caps and collars not designated as hedging instruments	—		1,367		—		1,367
Financial Liabilities:
Interest rate swap designated as hedging instruments	$	—	$	50,431	$	—	$	50,431
Correspondent interest rate swaps not designated as hedging instruments	—		1,068		—		1,068
Customer interest rate swaps not designated as hedging instruments	—		35,755		—		35,755
Customer interest rate caps and collars not designated as hedging instruments	—		1,367		—		1,367

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 value	9,897		—		—		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.

Schedule of Assets Measured at Fair Value on a Non-Recurring Basis

The following table summarizes assets measured at fair value on a non-recurring basis as of March 31, 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 March 31, 2024
Assets:
Collateral dependent loans with an ACL	$	—	$	—	$	13,160	$	13,160
Servicing assets with a valuation allowance	—		—		4,728		4,728
OREO	—		—		18,445		18,445
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

Schedule of Estimated Fair Values and Carrying Values of All Financial Instruments

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 March 31, 2024 and December 31, 2023 were as follows:

			Fair Value
	Carrying Amount		Level 1		Level 2		Level 3
March 31, 2024
Financial assets:
Cash and cash equivalents	$	740,769	$	—	$	740,769	$	—
HTM debt securities	178,662		—		155,741		—
LHFS(1)	11,272		—		11,272		—
LHI(2)	9,573,890		—		—		9,409,404
Accrued interest receivable	51,476		—		51,476		—
BOLI	85,359		—		85,359		—
Servicing asset	7,894		—		7,894		—
Equity securities without a readily determinable fair value	38,194		N/A		N/A		N/A
FHLB and FRB stock	54,094		N/A		N/A		N/A
Financial liabilities:
Noninterest-bearing deposits	$	2,349,211	$	—	$	2,349,211	$	—
Interest-bearing deposits	8,304,609		—		8,147,449		—
Advances from FHLB	100,000		—		100,056		—
Accrued interest payable	33,200		—		33,200		—
Subordinated debentures and subordinated notes	230,034		—		230,034		—
December 31, 2023
Financial assets:
Cash and cash equivalents	$	629,063	$	—	$	629,063	$	—
HTM debt securities	180,403		—		160,021		—
LHFS(1)	11,288		—		11,288		—
LHI(2)	9,577,180		—		—		9,322,744
Accrued interest receivable	53,313		—		53,313		—
BOLI	84,833		—		84,833		—
Servicing asset	6,576		—		6,576		—
Equity securities without a readily determinable fair value	11,624		N/A		N/A		N/A
FHLB and FRB stock	53,699		N/A		N/A		N/A
Financial liabilities:
Noninterest-bearing deposits	$	2,218,036	$	—	$	2,218,036	$	—
Interest-bearing deposits	8,120,159		—		8,096,209		—
Advances from FHLB	100,000		—		100,051		—
Accrued interest payable	41,948		—		41,948		—
Subordinated debentures and subordinated notes	229,783		—		229,783		—

(1) LHFS primarily represent commercial loans moved to held for sale or mortgage LHFS that are carried at lower of cost or market.

(2) LHI includes MW and is carried at amortized cost.

XML

Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Balance Sheet

The notional amounts and estimated fair values as of March 31, 2024 and December 31, 2023 are as shown in the table below.

	March 31, 2024						December 31, 2023
			Estimated Fair Value						Estimated Fair Value
	Notional Amount		Asset Derivative		Liability Derivative		Notional Amount		Asset Derivative		Liability Derivative
Derivatives designated as hedging instruments (cash flow hedges):
Interest rate swap on money market deposit account payments	$	250,000	$	11,047	$	—	$	250,000	$	12,208	$	—
Interest rate swaps on fixed rate advances/brokered CDs	200,000		—		1,286		200,000		—		4,296
Interest rate swaps on customer loan interest payments	375,000		—		45,237		375,000		—		40,055
Interest rate collars on customer loan interest payments	450,000		1,151		3,908		450,000		2,304		2,770
Interest rate floor on customer loan interest payments	200,000		2,172		—		200,000		4,302		—
Total derivatives designated as hedging instruments	$	1,475,000	$	14,370	$	50,431	$	1,475,000	$	18,814	$	47,121
Derivatives not designated as hedging instruments:
Financial institution counterparty:
Interest rate swaps	$	907,171	$	36,357	$	1,068	$	893,702	$	28,007	$	2,322
Interest rate caps and corridors	319,974		1,367		—		285,370		1,344		—
Commercial customer counterparty:
Interest rate swaps	907,171		941		35,755		893,702		2,118		27,288
Interest rate caps and corridors	319,974		—		1,367		285,370		—		1,344
Total derivatives not designated as hedging instruments	$	2,454,290	$	38,665	$	38,190	$	2,358,144	$	31,469	$	30,954
Offsetting derivative assets/liabilities	—		(33,531)		(33,531)		—		(29,463)		(29,463)
Total derivatives	$	3,929,290	$	19,504	$	55,090	$	3,833,144	$	20,820	$	48,612

Derivative Instruments, (Loss) Gain

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

	For the Three Months Ended March 31, 2024						For the Three Months Ended March 31, 2023
	(Loss) gain recognized in other comprehensive income on derivative		Gain (loss) reclassified from accumulated other comprehensive income into income		Location of (loss) gain reclassified from accumulated other comprehensive income into income		(Loss) gain recognized in other comprehensive income on derivative		Gain (loss) reclassified from accumulated other comprehensive income into income		Location 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		$	(1,082)	$	1,082	Interest Expense
Interest rate swap on money market deposit account payments	1,849		3,439		Interest Expense		(3,977)		2,568		Interest Expense
Interest rate swaps, collars and floors on customer loan interest payments	(9,250)		(5,369)		Interest Income		12,136		(3,807)		Interest Income
Total	$	(8,495)	$	(836)			$	7,077	$	(157)
					Net gain recognized in other noninterest income						Net gain recognized in other noninterest income
Derivatives not designated as hedging instruments:
Interest rate swaps, caps and collars					$	449					$	212

Schedule of Derivative Instruments Outstanding

The following is a summary of the interest rate swaps, caps and collars outstanding as of March 31, 2024 and December 31, 2023.

	March 31, 2024
	Notional Amount		Fixed Rate	Floating Rate	Maturity	Fair Value
Non-hedging derivative instruments:
Customer interest rate derivative:
Interest rate swaps - receive fixed/pay floating	$	907,171	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. 3.9 years	$	(34,815)
Interest rate caps and corridors	$	319,974	3.50% - 7.50%	SOFR CME 1 month + 0.0% - 3% SOFR + 0.0%	Wtd. Avg. 0.5 years	$	(1,367)
Correspondent interest rate derivative:
Interest rate swaps - pay fixed/receive floating	$	907,171	2.41% - 7.37%	LIBOR 1 month + 3.0% SOFR CME 1 month + 0.0% - 3.8% SOFR-NYFD 30 day avg + 2.5% - 3.0%	Wtd. Avg. 3.9 years	$	35,288
Interest rate caps and corridors	$	319,974	3.50% - 7.50%	SOFR CME 1 month + 0.0% - 3.0% SOFR + 0.0%	Wtd. Avg. 0.5 years	$	1,367
	December 31, 2023
	Notional Amount		Fixed Rate	Floating Rate	Maturity	Fair 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% + 3.0% 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% - 3% SOFR + 0.0%	Wtd. Avg. 0.8 years	$	1,344

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OBS Loan Commitments (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Schedule of the Approximate Amounts of Financial Instruments with Off-Balance Sheet Risk

The following table sets forth the approximate amounts of these financial instruments as of March 31, 2024 and December 31, 2023:

	March 31,		December 31,
	2024		2023
Commitments to extend credit	$	2,834,310	$	3,083,501
MW commitments	794,470		803,704
Standby and commercial letters of credit	113,405		111,590
Total	$	3,742,185	$	3,998,795

Schedule of Allowance for Unfunded Commitments

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 March 31,
	2024		2023
Beginning balance for ACL on unfunded commitments	$	8,045	$	10,086
(Benefit) provision for credit losses on unfunded commitments	(1,541)		1,497
Ending balance of ACL on unfunded commitments	$	6,504	$	11,583

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Stock-Based Awards (Tables)

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

Summary of Option Activity

A summary of option activity under the 2010 Incentive Plan for the three months ended March 31, 2024 and 2023, and changes during the periods then ended, is presented below:

	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, 2023	1,000	$	10.43	1.07 years
Exercised	(1,000)	10.43
Outstanding and exercisable at March 31, 2023	—	$	—	—	$	—

A summary of the status of the Company’s stock options under the 2022 Equity Plan as of March 31, 2024 and 2023, and changes during the three 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, 2023	657,494	$	24.47
Forfeited	(1,666)	17.38
Cancelled	(3,804)	29.13
Exercised	(3,951)	21.38
Outstanding at March 31, 2023	648,073	$	24.48	5.24 years
Options exercisable at March 31, 2023	610,073	$	24.74	5.13 years
Outstanding at January 1, 2024	602,573	$	24.40
Outstanding at March 31, 2024	602,573	$	24.40	4.59 years	$	215,379
Options exercisable at March 31, 2024	602,573	$	24.40	4.59 years	$	215,379

A summary of the status of the Company’s stock options under the Veritex (Green) 2014 Plan as of March 31, 2024 and 2023, and changes during the three 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, 2023	155,212	$	19.83
Cancelled	(505)	21.38
Exercised	(13,266)	21.38
Outstanding at March 31, 2023	141,441	$	21.86	4.87 years
Options exercisable at March 31, 2023	141,441	$	21.86	4.87 years
Outstanding at January 1, 2024	124,499	$	22.00
Outstanding at March 31, 2024	124,499	$	22.00	3.46 years	$	391,054
Options exercisable at March 31, 2024	124,499	$	22.00	3.46 years	$	391,054
Weighted average fair value of options granted during the period		$	—

A summary of the status of the Company’s stock options under the Green 2010 Plan as of March 31, 2024 and 2023, and changes during the three 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, 2023	43,162	$	13.11
Exercised	(29,630)	13.22
Outstanding at March 31, 2023	13,532	$	12.86	3.94 years
Outstanding at January 1, 2024	10,784	$	12.65
Outstanding at March 31, 2024	10,784	$	12.65	3.82 years	$	85

Schedule of Fair Value of Stock Options Exercised or Restricted Stock Units Vested

A summary of the fair value of the Company’s stock options exercised under the 2010 Incentive Plan for the three months ended March 31, 2024 and 2023 is presented below:

	Fair Value of Options Exercised as of March 31,
	2024		2023
Nonperformance-based stock options exercised	$	—	$	16

A summary of the fair value of the Company’s stock options exercised, RSUs and PSUs vested under the 2022 Equity Plan during the three months ended March 31, 2024 and 2023 is presented below:

	Fair Value of Options Exercised or RSUs Vested in the Three Months Ended March 31,
	2024		2023
Non-performance-based stock options exercised	$	—	$	31
RSUs vested	3,057		3,044
PSUs vested	1,133		1,070

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 three months ended March 31, 2024 and 2023 presented below:

	Fair Value of Options Exercised or RSUs Vested in the Three Months Ended March 31,
	2024		2023
Non-performance-based stock options exercised	$	—	$	18
RSUs vested	326		1,990
PSU vested	149		227

A summary of the fair value of the Company’s stock options exercised under the Green 2010 Plan during the three months ended March 31, 2024 and 2023 presented below:

	Fair Value of Options Exercised as of March 31,
	2024		2023
Nonperformance-based stock options exercised	$	—	$	365

Schedule of Share-based 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 March 31,
	2024		2023
2022 Equity Plan	$	2,459	$	2,465
Veritex (Green) 2014 Plan	430		422

Summary of Status of the Company's Restricted Shares or Restricted Stock Units

A summary of the status of the Company’s RSUs under the 2022 Equity Plan as of March 31, 2024 and 2023, and changes during the three months then ended, is as follows:

	2022 Equity Plan
	Non-performance-Based
	RSUs
	Units	Weighted Average Grant Date Fair Value
Outstanding at January 1, 2023	955,104	$	28.38
Granted	224,165	27.90
Vested into shares	(162,952)	30.23
Forfeited	(16,394)	31.77
Outstanding at March 31, 2023	999,923	$	27.87
Outstanding at January 1, 2024	948,513	$	27.52
Granted	190,018	21.94
Vested into shares	(159,113)	29.87
Forfeited	(4,700)	30.73
Outstanding at March 31, 2024	974,718	$	26.03

A summary of the status of the Company’s PSUs under the 2022 Equity Plan as of March 31, 2024 and 2023, and changes during the three months then ended, is as follows:

	2022 Equity Plan
	Performance-Based
	PSUs
	Units	Weighted Average Grant Date Fair Value
Outstanding at January 1, 2023	126,707	$	31.19
Granted	53,310	27.55
Vested into shares	(41,781)	26.42
Outstanding at March 31, 2023	129,768	$	30.28
Outstanding at January 1, 2024	129,786	$	30.28
Granted	113,144	18.84
Vested into shares	(56,729)	25.94
Outstanding at March 31, 2024	186,201	$	25.01

A summary of the status of the Company’s RSUs under the Veritex (Green) 2014 Plan as of March 31, 2024 and 2023 and changes during the three months then ended, is as follows:

	Veritex (Green) 2014 Plan
	Non-performance-Based
	RSUs
	Units	Weighted Average Grant Date Fair Value
Outstanding at January 1, 2023	86,233	$	21.09
Vested into shares	(19,282)	29.66
Forfeited	(2,232)	29.13
Outstanding at March 31, 2023	64,719	$	18.26
Outstanding at January 1, 2024	64,719	$	18.26
Vested into shares	(3,308)	32.20
Outstanding at March 31, 2024	61,411	$	17.51

A summary of the status of the Company’s PSUs under the Veritex (Green) 2014 Plan as of March 31, 2024 and 2023 and changes during the three months then ended, is as follows:

	Veritex (Green) 2014 Plan
	Performance-Based
	PSUs
	Units	Weighted Average Grant Date Fair Value
Outstanding at January 1, 2023	19,173	$	30.74
Vested into shares	(8,531)	25.94
Outstanding at March 31, 2023	10,642	$	31.93
Outstanding at January 1, 2024	10,642	$	31.93
Granted	1,246	18.84
Vested into shares	(7,477)	25.94
Outstanding at March 31, 2024	4,411	$	40.38

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Income Taxes (Tables)

3 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

Schedule of Income Tax Expense

Income tax expense for the three months ended March 31, 2024 and 2023 was as follows:

	Three Months Ended March 31,
	2024			2023
Income tax expense for the period	$	7,237		$	11,012
Effective tax rate	23.1		%	22.3		%

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Capital Requirements and Restrictions on Retained Earnings (Tables)

3 Months Ended

Mar. 31, 2024

Regulatory Capital Requirements under Banking Regulations [Abstract]

Schedule of Comparison of the Company's and Bank's Actual Capital Amounts and Ratios to Required Capital Amounts and Ratios

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
	Amount		Ratio		Amount		Ratio		Amount		Ratio
As of March 31, 2024
Total capital (to RWA)
Company	$	1,520,656	13.33	%	$	912,622	8.0	%	n/a		n/a
Bank	1,475,046		12.98		909,119		8.0		$	1,136,399	10.0
Tier 1 capital (to RWA)
Company	1,212,512		10.63		684,391		6.0		n/a		n/a
Bank	1,365,973		12.02		681,850		6.0		909,133		8.0
CET1 (to RWA)
Company	1,182,567		10.37		513,168		4.5		n/a		n/a
Bank	1,365,973		12.02		511,388		4.5		738,671		6.5
Tier 1 capital (to average assets)
Company	1,212,512		10.12		479,254		4.0		n/a		n/a
Bank	1,365,973		11.41		478,869		4.0		598,586		5.0
As of December 31, 2023
Total capital (to RWA)
Company	$	1,500,703	13.18	%	$	910,897	8.0	%	n/a		n/a
Bank	1,467,960		12.90		910,363		8.0		$	1,137,953	10.0	%
Tier 1 capital (to RWA)
Company	1,202,252		10.56		683,098		6.0		n/a		n/a
Bank	1,368,384		12.03		682,486		6.0		909,981		8.0
CET1 (to RWA)
Company	1,172,362		10.29		512,695		4.5		n/a		n/a
Bank	1,368,384		12.03		511,864		4.5		739,360		6.5
Tier 1 capital (to average assets)
Company	1,202,252		10.03		479,462		4.0		n/a		n/a
Bank	1,368,384		11.43		478,875		4.0		598,593		5.0

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Operations and Summary of Significant Accounting Policies - Additional Information (Details) shares in Thousands	3 Months Ended
	Mar. 31, 2024 branch shares	Mar. 31, 2023 shares	May 06, 2024 branch
Segment Reporting Information [Line Items]
Excluded from diluted EPS weighted average shares (in shares) | shares	1,127	834
Restricted Stock Units
Segment Reporting Information [Line Items]
Excluded from diluted EPS weighted average shares (in shares) | shares	514	440
Employee Stock Options
Segment Reporting Information [Line Items]
Excluded from diluted EPS weighted average shares (in shares) | shares	613	214
Dallas-Fort Worth
Segment Reporting Information [Line Items]
Number of branches (in branches) | branch	19
Dallas-Fort Worth | Subsequent Event
Segment Reporting Information [Line Items]
Number of new branches opened (in branches) | branch			1
Houston
Segment Reporting Information [Line Items]
Number of branches (in branches) | branch	11

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Operations and Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Numerator:
Net income	$ 24,156	$ 38,411
Denominator:
Weighted average shares outstanding for basic EPS (in shares)	54,444	54,149
Dilutive effect of employee stock based awards (in shares)	398	457
Adjusted weighted average shares outstanding (in shares)	54,842	54,606
EPS:
Basic (in dollars per share)	$ 0.44	$ 0.71
Diluted (in dollars per share)	$ 0.44	$ 0.70

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Supplemental Statement of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest	$ 98,354	$ 54,189
Cash paid for income taxes	$ 0	$ 0

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Securities - Narrative (Details)	3 Months Ended
	Mar. 31, 2024 USD ($) investment	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($) investment	Jan. 01, 2022 USD ($) Security
Investments, Debt and Equity Securities [Abstract]
Equity securities	$ 9,792,000		$ 9,897,000
Realized gain (loss) on equity securities	0	$ 0
Equity securities without a readily determinable fair value	38,194,000		11,624,000
Securities purchased under agreements to resell	0
Interest income, securities purchased under agreements to resell	0	$ 0
Number of AFS positions elected for transfer | Security				25
Aggregate fair value of AFS transferred				$ 117,001,000
Net unrealized holding gain	$ 2,925,000		$ 3,122,000
Number of investment positions in an unrealized loss position | investment	133		142

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Securities - Securities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Unrealized (loss) gain recognized on equity securities with a readily determinable fair value	$ (105)	$ 126

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Securities - Carrying Amount and Fair Values (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 1,251,802	$ 1,161,178
Gross Unrealized Gains	8,825	11,251
Gross Unrealized Losses	94,359	95,790
ACL	0	0	$ 885	$ 0
Fair Value	1,166,268	1,076,639
HTM
Amortized Cost	178,662	180,403
Gross Unrealized Gains	7	86
Gross Unrealized Losses	22,928	20,468
ACL	0	0
Fair Value	155,741	160,021
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	262,526	244,652
Gross Unrealized Gains	1,198	1,034
Gross Unrealized Losses	26,431	29,566
ACL	0	0
Fair Value	237,293	216,120
Municipal securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	14,272	46,631
Gross Unrealized Gains	0	108
Gross Unrealized Losses	3,357	3,258
ACL	0	0
Fair Value	10,915	43,481
HTM
Amortized Cost	111,922	112,204
Gross Unrealized Gains	7	86
Gross Unrealized Losses	11,282	9,864
ACL	0	0
Fair Value	100,647	102,426
MBS
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	199,632	194,486
Gross Unrealized Gains	3,361	4,430
Gross Unrealized Losses	14,686	13,465
ACL	0	0
Fair Value	188,307	185,451
HTM
Amortized Cost	33,154	33,716
Gross Unrealized Gains	0	0
Gross Unrealized Losses	6,719	6,037
ACL	0	0
Fair Value	26,435	27,679
CMO
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	574,622	563,421
Gross Unrealized Gains	3,520	4,634
Gross Unrealized Losses	47,263	46,999
ACL	0	0
Fair Value	530,879	521,056
HTM
Amortized Cost	33,586	34,483
Gross Unrealized Gains	0	0
Gross Unrealized Losses	4,927	4,567
ACL	0	0
Fair Value	28,659	29,916
Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	122,078	47,738
Gross Unrealized Gains	732	1,045
Gross Unrealized Losses	2,549	2,130
ACL	0	0
Fair Value	120,261	46,653
Collateralized loan obligations
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	78,672	64,250
Gross Unrealized Gains	14	0
Gross Unrealized Losses	73	372
ACL	0	0
Fair Value	$ 78,613	$ 63,878

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Securities - Unrealized Loss Position (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
AFS
Less Than 12 Months	$ 190,008	$ 50,792
12 Months or More	631,666	780,455
Totals	821,674	831,247
AFS Unrealized Loss
Less Than 12 Months	11,719	7,574
12 Months or More	82,640	88,216
Totals	94,359	95,790
HTM Fair Value
Less Than 12 Months	100,109	7,845
12 Months or More	55,094	137,308
Totals	155,203	145,153
HTM Unrealized Loss
Less Than 12 Months	11,275	270
12 Months or More	11,646	20,198
Totals	22,921	20,468
Corporate bonds
AFS
Less Than 12 Months	53,376	34,989
12 Months or More	164,604	162,148
Totals	217,980	197,137
AFS Unrealized Loss
Less Than 12 Months	5,297	5,970
12 Months or More	21,134	23,596
Totals	26,431	29,566
Municipal securities
AFS
Less Than 12 Months	10,915	6,792
12 Months or More	0	22,052
Totals	10,915	28,844
AFS Unrealized Loss
Less Than 12 Months	3,357	45
12 Months or More	0	3,213
Totals	3,357	3,258
HTM Fair Value
Less Than 12 Months	100,109	7,845
12 Months or More	0	79,713
Totals	100,109	87,558
HTM Unrealized Loss
Less Than 12 Months	11,275	270
12 Months or More	0	9,594
Totals	11,275	9,864
MBS
AFS
Less Than 12 Months	0	0
12 Months or More	87,805	104,486
Totals	87,805	104,486
AFS Unrealized Loss
Less Than 12 Months	0	0
12 Months or More	14,686	13,465
Totals	14,686	13,465
HTM Fair Value
Less Than 12 Months	0	0
12 Months or More	26,435	27,679
Totals	26,435	27,679
HTM Unrealized Loss
Less Than 12 Months	0	0
12 Months or More	6,719	6,037
Totals	6,719	6,037
CMO
AFS
Less Than 12 Months	61,680	0
12 Months or More	339,830	419,044
Totals	401,510	419,044
AFS Unrealized Loss
Less Than 12 Months	1,066	0
12 Months or More	46,197	46,999
Totals	47,263	46,999
HTM Fair Value
Less Than 12 Months	0	0
12 Months or More	28,659	29,916
Totals	28,659	29,916
HTM Unrealized Loss
Less Than 12 Months	0	0
12 Months or More	4,927	4,567
Totals	4,927	4,567
Asset-backed securities
AFS
Less Than 12 Months	64,037	9,011
12 Months or More	6,250	8,847
Totals	70,287	17,858
AFS Unrealized Loss
Less Than 12 Months	1,999	1,559
12 Months or More	550	571
Totals	2,549	2,130
Collateralized loan obligations
AFS
Less Than 12 Months	0	0
12 Months or More	33,177	63,878
Totals	33,177	63,878
AFS Unrealized Loss
Less Than 12 Months	0	0
12 Months or More	73	372
Totals	$ 73	$ 372

XML

Securities - Allowance For Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Debt Securities, Available-for-Sale, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
ACL beginning balance	$ 0	$ 0
Credit loss expense	0
Credit loss expense		885
ACL ending balance	$ 0	$ 885

XML

Securities - Maturities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Available For Sale Amortized Cost
Due in one year or less	$ 2,010	$ 2,018
Due from one year to five years	45,060	46,645
Due from five years to ten years	199,462	188,526
Due after ten years	30,266	54,094
Total investment securities available for sale, single maturity date	276,798	291,283
Amortized Cost	1,251,802	1,161,178
Available For Sale Fair value
Due in one year or less	1,977	1,906
Due from one year to five years	45,423	46,682
Due from five years to ten years	177,121	163,397
Due after ten years	23,687	47,616
Total investment securities available for sale	248,208	259,601
Fair value	1,166,268	1,076,639
Held-to-Maturity Amortized Cost
Due in one year or less	3,977	0
Due from one year to five years	447	4,445
Due from five years to ten years	20,060	12,806
Due after ten years	87,438	94,953
Total investment securities held to maturity, single maturity date	111,922	112,204
Amortized Cost	178,662	180,403
Held-to-Maturity Fair Value
Due in one year or less	3,963	0
Due from one year to five years	443	4,448
Due from five years to ten years	19,570	12,628
Due after ten years	76,671	85,350
Total investment securities held to maturity	100,647	102,426
Fair value	155,741	160,021
MBS and CMO
Available For Sale Amortized Cost
Amortized cost	774,254	757,907
Amortized Cost	199,632	194,486
Available For Sale Fair value
Fair value	719,186	706,507
Fair value	188,307	185,451
Held-to-Maturity Amortized Cost
Amortized cost	66,740	68,199
Amortized Cost	33,154	33,716
Held-to-Maturity Fair Value
Fair value	55,094	57,595
Asset-backed securities
Available For Sale Amortized Cost
Amortized cost	122,078	47,738
Amortized Cost	122,078	47,738
Available For Sale Fair value
Fair value	120,261	46,653
Fair value	120,261	46,653
Held-to-Maturity Amortized Cost
Amortized cost	0	0
Held-to-Maturity Fair Value
Fair value	0	0
Collateralized loan obligations
Available For Sale Amortized Cost
Amortized cost	78,672	64,250
Amortized Cost	78,672	64,250
Available For Sale Fair value
Fair value	78,613	63,878
Fair value	78,613	63,878
Held-to-Maturity Amortized Cost
Amortized cost	0	0
Held-to-Maturity Fair Value
Fair value	$ 0	$ 0

XML

Securities - Proceeds From Sale of Debt Securities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Proceeds from sales	$ 113,794	$ 109,793
Gross realized losses	$ 6,304	$ 5,321

XML

LHI and ACL - Balance Sheet Summary (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Mar. 31, 2023
Loans and Allowance for Credit Losses
Loans	$ 9,706,013	$ 9,593,125
Deferred loan fees, net	(6,931)	(8,785)
Less: ACL	(112,032)	(109,816)	$ (91,052)	$ (98,694)
Total LHI, net	9,587,050	9,474,524
Contractual principal balance	5,084	5,334
Discount on retained loans from sale	8,512	7,629
Real Estate | Construction and land
Loans and Allowance for Credit Losses
Loans	1,568,257	1,734,254
Less: ACL	(19,781)	(21,032)	(13,120)	(17,314)
Real Estate | Farmland
Loans and Allowance for Credit Losses
Loans	30,979	31,114
Less: ACL	(107)	(101)	(127)	(168)
Real Estate | Residential Real Estate
Loans and Allowance for Credit Losses
Discount on retained loans from sale	3,005	3,231
Purchase of real estate loans			223,924
Receivable	160,695
Real Estate | Residential Real Estate | 1 - 4 family residential
Loans and Allowance for Credit Losses
Loans	969,401	937,119
Less: ACL	(11,516)	(9,539)	(9,533)	(9,541)
Real Estate | Residential Real Estate | Multi-family residential
Loans and Allowance for Credit Losses
Loans	751,607	605,817
Less: ACL	(6,339)	(4,882)	(2,607)	(3,484)
Real Estate | Commercial Real Estate | OOCRE
Loans and Allowance for Credit Losses
Loans	788,376	794,088
Less: ACL	(9,802)	(10,252)	(8,707)	(8,813)
Real Estate | Commercial Real Estate | NOOCRE
Loans and Allowance for Credit Losses
Loans	2,352,993	2,350,725
Less: ACL	(31,137)	(27,729)	(26,704)	(26,238)
Commercial
Loans and Allowance for Credit Losses
Loans	2,785,987	2,752,063
Less: ACL	(32,791)	(35,886)	(30,142)	(32,717)
MW
Loans and Allowance for Credit Losses
Loans	449,531	377,796
Consumer
Loans and Allowance for Credit Losses
Loans	8,882	10,149
Less: ACL	$ (155)	$ (135)	$ (112)	$ (419)

XML

LHI and ACL - Allowance for Credit Loss Activity (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Analysis of allowance for loan losses
Beginning balance	$ 109,816	$ 91,052	$ 91,052
Credit (benefit) loss expense	7,500	9,385
Charge-offs	(5,430)	(1,229)	(25,366)
Recoveries	146	371
Ending balance	112,032	98,694	109,816
Non-PCD Loans
Analysis of allowance for loan losses
Credit (benefit) loss expense	11,940	8,267
PCD Loans
Analysis of allowance for loan losses
Credit (benefit) loss expense	(4,440)	233
Real Estate | Construction and land
Analysis of allowance for loan losses
Beginning balance	21,032	13,120	13,120
Charge-offs	0	0	0
Recoveries	0	0
Ending balance	19,781	17,314	21,032
Real Estate | Construction and land | Non-PCD Loans
Analysis of allowance for loan losses
Credit (benefit) loss expense	(1,251)	4,240
Real Estate | Construction and land | PCD Loans
Analysis of allowance for loan losses
Credit (benefit) loss expense	0	(46)
Real Estate | Farmland
Analysis of allowance for loan losses
Beginning balance	101	127	127
Charge-offs	0	0	0
Recoveries	0	0
Ending balance	107	168	101
Real Estate | Farmland | Non-PCD Loans
Analysis of allowance for loan losses
Credit (benefit) loss expense	6	41
Real Estate | Farmland | PCD Loans
Analysis of allowance for loan losses
Credit (benefit) loss expense	0	0
Real Estate | Residential Real Estate | 1 - 4 family residential
Analysis of allowance for loan losses
Beginning balance	9,539	9,533	9,533
Charge-offs	0	0	(21)
Recoveries	1	1
Ending balance	11,516	9,541	9,539
Real Estate | Residential Real Estate | 1 - 4 family residential | Non-PCD Loans
Analysis of allowance for loan losses
Credit (benefit) loss expense	1,978	12
Real Estate | Residential Real Estate | 1 - 4 family residential | PCD Loans
Analysis of allowance for loan losses
Credit (benefit) loss expense	(2)	(5)
Real Estate | Residential Real Estate | Multi-family residential
Analysis of allowance for loan losses
Beginning balance	4,882	2,607	2,607
Charge-offs	0	0	(192)
Recoveries	0	0
Ending balance	6,339	3,484	4,882
Real Estate | Residential Real Estate | Multi-family residential | Non-PCD Loans
Analysis of allowance for loan losses
Credit (benefit) loss expense	1,457	877
Real Estate | Residential Real Estate | Multi-family residential | PCD Loans
Analysis of allowance for loan losses
Credit (benefit) loss expense	0	0
Real Estate | Commercial Real Estate | OOCRE
Analysis of allowance for loan losses
Beginning balance	10,252	8,707	8,707
Charge-offs	(120)	(116)	(855)
Recoveries	0	0
Ending balance	9,802	8,813	10,252
Real Estate | Commercial Real Estate | OOCRE | Non-PCD Loans
Analysis of allowance for loan losses
Credit (benefit) loss expense	47	238
Real Estate | Commercial Real Estate | OOCRE | PCD Loans
Analysis of allowance for loan losses
Credit (benefit) loss expense	(377)	(16)
Real Estate | Commercial Real Estate | NOOCRE
Analysis of allowance for loan losses
Beginning balance	27,729	26,704	26,704
Charge-offs	(4,293)	0	(13,649)
Recoveries	0	0
Ending balance	31,137	26,238	27,729
Real Estate | Commercial Real Estate | NOOCRE | Non-PCD Loans
Analysis of allowance for loan losses
Credit (benefit) loss expense	11,653	(499)
Real Estate | Commercial Real Estate | NOOCRE | PCD Loans
Analysis of allowance for loan losses
Credit (benefit) loss expense	(3,952)	33
Commercial
Analysis of allowance for loan losses
Beginning balance	35,886	30,142	30,142
Charge-offs	(946)	(1,051)	(10,413)
Recoveries	96	364
Ending balance	32,791	32,717	35,886
Commercial | Non-PCD Loans
Analysis of allowance for loan losses
Credit (benefit) loss expense	(2,136)	2,995
Commercial | PCD Loans
Analysis of allowance for loan losses
Credit (benefit) loss expense	(109)	267
MW
Analysis of allowance for loan losses
Beginning balance	260
Charge-offs	0
Recoveries	0
Ending balance	404		260
MW | Non-PCD Loans
Analysis of allowance for loan losses
Credit (benefit) loss expense	144
MW | PCD Loans
Analysis of allowance for loan losses
Credit (benefit) loss expense	0
Consumer
Analysis of allowance for loan losses
Beginning balance	135	112	112
Charge-offs	(71)	(62)	(236)
Recoveries	49	6
Ending balance	155	419	$ 135
Consumer | Non-PCD Loans
Analysis of allowance for loan losses
Credit (benefit) loss expense	42	363
Consumer | PCD Loans
Analysis of allowance for loan losses
Credit (benefit) loss expense	$ 0	$ 0

XML

LHI and ACL - Collateral Dependent Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Servicing Asset at Amortized Cost [Line Items]
Loans	$ 9,706,013	$ 9,593,125
ACL Allocation	112,032	109,816	$ 98,694	$ 91,052
Real Estate | Commercial Real Estate | OOCRE
Servicing Asset at Amortized Cost [Line Items]
Loans	788,376	794,088
ACL Allocation	9,802	10,252	8,813	8,707
Real Estate | Commercial Real Estate | NOOCRE
Servicing Asset at Amortized Cost [Line Items]
Loans	2,352,993	2,350,725
ACL Allocation	31,137	27,729	26,238	26,704
Real Estate | Residential Real Estate | 1 - 4 family residential
Servicing Asset at Amortized Cost [Line Items]
Loans	969,401	937,119
ACL Allocation	11,516	9,539	9,541	9,533
Commercial
Servicing Asset at Amortized Cost [Line Items]
Loans	2,785,987	2,752,063
ACL Allocation	32,791	35,886	$ 32,717	$ 30,142
Real Property
Servicing Asset at Amortized Cost [Line Items]
Loans	37,769	44,939
Real Property | Real Estate | Commercial Real Estate | Construction and land
Servicing Asset at Amortized Cost [Line Items]
Loans	159	0
Real Property | Real Estate | Commercial Real Estate | OOCRE
Servicing Asset at Amortized Cost [Line Items]
Loans	9,357	3,059
Real Property | Real Estate | Commercial Real Estate | NOOCRE
Servicing Asset at Amortized Cost [Line Items]
Loans	9,344	21,169
Real Property | Real Estate | Residential Real Estate | 1 - 4 family residential
Servicing Asset at Amortized Cost [Line Items]
Loans	530	0
Real Property | Commercial
Servicing Asset at Amortized Cost [Line Items]
Loans	18,379	20,711
ACL Allocation
Servicing Asset at Amortized Cost [Line Items]
ACL Allocation	2,957	3,386
ACL Allocation | Real Estate | Commercial Real Estate | Construction and land
Servicing Asset at Amortized Cost [Line Items]
ACL Allocation	7	0
ACL Allocation | Real Estate | Commercial Real Estate | OOCRE
Servicing Asset at Amortized Cost [Line Items]
ACL Allocation	0	47
ACL Allocation | Real Estate | Commercial Real Estate | NOOCRE
Servicing Asset at Amortized Cost [Line Items]
ACL Allocation	0	0
ACL Allocation | Real Estate | Residential Real Estate | 1 - 4 family residential
Servicing Asset at Amortized Cost [Line Items]
ACL Allocation	44	0
ACL Allocation | Commercial
Servicing Asset at Amortized Cost [Line Items]
ACL Allocation	$ 2,906	$ 3,339

XML

LHI and ACL - Nonaccrual (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2023
Loans and Allowance for Credit Losses
Nonaccrual	$ 85,140			$ 92,848
Nonaccrual With No ACL	46,776			62,364
Financing receivable, nonaccrual, interest income	781	$ 772
PCD Loans
Loans and Allowance for Credit Losses
Financing receivable, nonaccrual, interest income	9,419		$ 13,715
Commercial
Loans and Allowance for Credit Losses
Nonaccrual	37,627			40,868
Nonaccrual With No ACL	10,086			10,610
Consumer
Loans and Allowance for Credit Losses
Nonaccrual	21			24
Nonaccrual With No ACL	21			24
1 - 4 family residential | Residential Real Estate | Real Estate
Loans and Allowance for Credit Losses
Nonaccrual	3,263			1,965
Nonaccrual With No ACL	3,058			1,965
OOCRE | Commercial Real Estate | Real Estate
Loans and Allowance for Credit Losses
Nonaccrual	15,126			9,719
Nonaccrual With No ACL	15,126			9,493
NOOCRE | Commercial Real Estate | Real Estate
Loans and Allowance for Credit Losses
Nonaccrual	22,366			33,479
Nonaccrual With No ACL	11,866			33,479
Construction and land | Residential Real Estate | Real Estate
Loans and Allowance for Credit Losses
Nonaccrual	6,737			6,793
Nonaccrual With No ACL	$ 6,619			$ 6,793

XML

LHI and ACL - Past Due (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Non-Accrual and Past Due Loans
Loans	$ 9,706,013	$ 9,593,125
Total 90 days past due and still accruing	220	2,975
PCD
Non-Accrual and Past Due Loans
Loans	21,897	36,305
Total Past Due
Non-Accrual and Past Due Loans
Loans	81,615	111,515
30 to 59 Days
Non-Accrual and Past Due Loans
Loans	28,371	56,492
60 to 89 Days
Non-Accrual and Past Due Loans
Loans	6,440	4,685
90 Days or Greater
Non-Accrual and Past Due Loans
Loans	46,804	50,338
Total Current
Non-Accrual and Past Due Loans
Loans	9,624,398	9,481,610
Real Estate | Construction and land
Non-Accrual and Past Due Loans
Loans	1,568,257	1,734,254
Total 90 days past due and still accruing	0	0
Real Estate | Construction and land | Total Past Due
Non-Accrual and Past Due Loans
Loans	19,887	36,172
Real Estate | Construction and land | 30 to 59 Days
Non-Accrual and Past Due Loans
Loans	13,150	29,379
Real Estate | Construction and land | 60 to 89 Days
Non-Accrual and Past Due Loans
Loans	59	0
Real Estate | Construction and land | 90 Days or Greater
Non-Accrual and Past Due Loans
Loans	6,678	6,793
Real Estate | Construction and land | Total Current
Non-Accrual and Past Due Loans
Loans	1,548,370	1,698,082
Real Estate | Farmland
Non-Accrual and Past Due Loans
Loans	30,979	31,114
Total 90 days past due and still accruing	0	0
Real Estate | Farmland | Total Past Due
Non-Accrual and Past Due Loans
Loans	0	0
Real Estate | Farmland | 30 to 59 Days
Non-Accrual and Past Due Loans
Loans	0	0
Real Estate | Farmland | 60 to 89 Days
Non-Accrual and Past Due Loans
Loans	0	0
Real Estate | Farmland | 90 Days or Greater
Non-Accrual and Past Due Loans
Loans	0	0
Real Estate | Farmland | Total Current
Non-Accrual and Past Due Loans
Loans	30,979	31,114
Real Estate | Residential Real Estate | 1 - 4 family residential
Non-Accrual and Past Due Loans
Loans	969,401	937,119
Total 90 days past due and still accruing	0	1,726
Real Estate | Residential Real Estate | 1 - 4 family residential | PCD
Non-Accrual and Past Due Loans
Loans	1,114	1,130
Real Estate | Residential Real Estate | 1 - 4 family residential | Total Past Due
Non-Accrual and Past Due Loans
Loans	4,970	10,585
Real Estate | Residential Real Estate | 1 - 4 family residential | 30 to 59 Days
Non-Accrual and Past Due Loans
Loans	2,352	4,359
Real Estate | Residential Real Estate | 1 - 4 family residential | 60 to 89 Days
Non-Accrual and Past Due Loans
Loans	459	2,535
Real Estate | Residential Real Estate | 1 - 4 family residential | 90 Days or Greater
Non-Accrual and Past Due Loans
Loans	2,159	3,691
Real Estate | Residential Real Estate | 1 - 4 family residential | Total Current
Non-Accrual and Past Due Loans
Loans	964,431	926,534
Real Estate | Residential Real Estate | Multi-family residential
Non-Accrual and Past Due Loans
Loans	751,607	605,817
Total 90 days past due and still accruing	0	0
Real Estate | Residential Real Estate | Multi-family residential | Total Past Due
Non-Accrual and Past Due Loans
Loans	0	15,095
Real Estate | Residential Real Estate | Multi-family residential | 30 to 59 Days
Non-Accrual and Past Due Loans
Loans	0	15,095
Real Estate | Residential Real Estate | Multi-family residential | 60 to 89 Days
Non-Accrual and Past Due Loans
Loans	0	0
Real Estate | Residential Real Estate | Multi-family residential | 90 Days or Greater
Non-Accrual and Past Due Loans
Loans	0	0
Real Estate | Residential Real Estate | Multi-family residential | Total Current
Non-Accrual and Past Due Loans
Loans	751,607	590,722
Real Estate | Commercial Real Estate | OOCRE
Non-Accrual and Past Due Loans
Loans	788,376	794,088
Total 90 days past due and still accruing	220	466
Real Estate | Commercial Real Estate | OOCRE | PCD
Non-Accrual and Past Due Loans
Loans	10,568	18,170
Real Estate | Commercial Real Estate | OOCRE | Total Past Due
Non-Accrual and Past Due Loans
Loans	17,172	11,215
Real Estate | Commercial Real Estate | OOCRE | 30 to 59 Days
Non-Accrual and Past Due Loans
Loans	1,826	916
Real Estate | Commercial Real Estate | OOCRE | 60 to 89 Days
Non-Accrual and Past Due Loans
Loans	0	114
Real Estate | Commercial Real Estate | OOCRE | 90 Days or Greater
Non-Accrual and Past Due Loans
Loans	15,346	10,185
Real Estate | Commercial Real Estate | OOCRE | Total Current
Non-Accrual and Past Due Loans
Loans	771,204	782,873
Real Estate | Commercial Real Estate | NOOCRE
Non-Accrual and Past Due Loans
Loans	2,352,993	2,350,725
Total 90 days past due and still accruing	0	783
Real Estate | Commercial Real Estate | NOOCRE | PCD
Non-Accrual and Past Due Loans
Loans	9,784	14,084
Real Estate | Commercial Real Estate | NOOCRE | Total Past Due
Non-Accrual and Past Due Loans
Loans	26,110	24,371
Real Estate | Commercial Real Estate | NOOCRE | 30 to 59 Days
Non-Accrual and Past Due Loans
Loans	10,605	3,182
Real Estate | Commercial Real Estate | NOOCRE | 60 to 89 Days
Non-Accrual and Past Due Loans
Loans	2,847	642
Real Estate | Commercial Real Estate | NOOCRE | 90 Days or Greater
Non-Accrual and Past Due Loans
Loans	12,658	20,547
Real Estate | Commercial Real Estate | NOOCRE | Total Current
Non-Accrual and Past Due Loans
Loans	2,326,883	2,326,354
Commercial
Non-Accrual and Past Due Loans
Loans	2,785,987	2,752,063
Total 90 days past due and still accruing	0	0
Commercial | PCD
Non-Accrual and Past Due Loans
Loans	420	2,908
Commercial | Total Past Due
Non-Accrual and Past Due Loans
Loans	13,465	14,001
Commercial | 30 to 59 Days
Non-Accrual and Past Due Loans
Loans	427	3,485
Commercial | 60 to 89 Days
Non-Accrual and Past Due Loans
Loans	3,075	1,394
Commercial | 90 Days or Greater
Non-Accrual and Past Due Loans
Loans	9,963	9,122
Commercial | Total Current
Non-Accrual and Past Due Loans
Loans	2,772,522	2,738,062
MW
Non-Accrual and Past Due Loans
Loans	449,531	377,796
Total 90 days past due and still accruing	0	0
MW | Total Past Due
Non-Accrual and Past Due Loans
Loans	0	0
MW | 30 to 59 Days
Non-Accrual and Past Due Loans
Loans	0	0
MW | 60 to 89 Days
Non-Accrual and Past Due Loans
Loans	0	0
MW | 90 Days or Greater
Non-Accrual and Past Due Loans
Loans	0	0
MW | Total Current
Non-Accrual and Past Due Loans
Loans	449,531	377,796
Consumer
Non-Accrual and Past Due Loans
Loans	8,882	10,149
Total 90 days past due and still accruing	0	0
Consumer | PCD
Non-Accrual and Past Due Loans
Loans	11	13
Consumer | Total Past Due
Non-Accrual and Past Due Loans
Loans	11	76
Consumer | 30 to 59 Days
Non-Accrual and Past Due Loans
Loans	11	76
Consumer | 60 to 89 Days
Non-Accrual and Past Due Loans
Loans	0	0
Consumer | 90 Days or Greater
Non-Accrual and Past Due Loans
Loans	0	0
Consumer | Total Current
Non-Accrual and Past Due Loans
Loans	$ 8,871	$ 10,073

XML

LHI and ACL - Trouble Debt Restructuring (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	$ 111,954
Combination - Interest Rate Reduction and Term Extension
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	52,098
30 to 59 Days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	11,343
60 to 89 Days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	0
90 Days or Greater
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	2,108
Real Estate | Construction and land
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	0
Real Estate | Construction and land | Term Extension
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	$ 2,000
Financing receivable, troubled debt restructuring, postmodification percentage (in percent)	0.10%
Real Estate | Construction and land | 30 to 59 Days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	$ 2,000
Real Estate | Construction and land | 60 to 89 Days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	0
Real Estate | Construction and land | 90 Days or Greater
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	0
Commercial | Combination - Interest Rate Reduction and Term Extension
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	$ 6,336
Financing receivable, troubled debt restructuring, postmodification percentage (in percent)	0.20%
Commercial | Commercial Real Estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	$ 27,764
Commercial | Commercial Real Estate | 30 to 59 Days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	0
Commercial | Commercial Real Estate | 60 to 89 Days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	0
Commercial | Commercial Real Estate | 90 Days or Greater
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	2,108
NOOCRE | Real Estate | Commercial Real Estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	84,190
NOOCRE | Real Estate | Commercial Real Estate | Interest Rate Reduction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	$ 28,441
Financing receivable, troubled debt restructuring, postmodification percentage (in percent)	1.20%
NOOCRE | Real Estate | Commercial Real Estate | Combination - Interest Rate Reduction and Term Extension
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	$ 45,762
Financing receivable, troubled debt restructuring, postmodification percentage (in percent)	1.90%
NOOCRE | Real Estate | Commercial Real Estate | 30 to 59 Days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	$ 9,343
NOOCRE | Real Estate | Commercial Real Estate | 60 to 89 Days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	0
NOOCRE | Real Estate | Commercial Real Estate | 90 Days or Greater
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing receivable, troubled debt restructuring, postmodification	$ 0

XML

LHI and ACL - Credit Quality Indicators (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Total consumer loans held for investment
Year one	$ 165,097		$ 701,008
Year two	685,309		2,326,877
Year three	2,328,750		1,747,195
Year four	1,708,351		816,093
Year five	804,405		359,111
Prior	1,354,593		1,149,311
Revolving Loans Amortized Cost Basis	2,640,525		2,474,545
Revolving Loans Converted to Term	18,983		18,985
Total	9,706,013		9,593,125
Total gross charge-offs
2023	0		0
2022	0		2,187
2021	43		2
2020	0		2,941
2019	0		1,301
Prior	5,387		18,935
Revolving Loans Amortized Cost Basis, Write Off	0		0
Revolving Loans Converted to Term, Write Off	0		0
Total	5,430	$ 1,229	25,366
Deferred loan fees, net	(6,931)		(8,785)
Pass
Total consumer loans held for investment
Year one	165,097		685,978
Year two	660,790		2,256,151
Year three	2,218,922		1,691,168
Year four	1,642,869		780,120
Year five	769,973		281,293
Prior	1,105,029		888,687
Revolving Loans Amortized Cost Basis	2,591,600		2,446,493
Revolving Loans Converted to Term	18,958		18,876
Total	9,173,238		9,048,766
Special mention
Total consumer loans held for investment
Year one	0		14,390
Year two	23,824		33,846
Year three	72,613		46,238
Year four	48,436		31,174
Year five	30,094		70,577
Prior	159,173		101,508
Revolving Loans Amortized Cost Basis	15,675		12,279
Revolving Loans Converted to Term	25		35
Total	349,840		310,047
Substandard
Total consumer loans held for investment
Year one	0		640
Year two	695		36,880
Year three	37,215		9,789
Year four	17,046		4,799
Year five	4,338		7,241
Prior	68,494		122,811
Revolving Loans Amortized Cost Basis	33,250		15,773
Revolving Loans Converted to Term	0		74
Total	161,038		198,007
PCD
Total consumer loans held for investment
Year one	0		0
Year two	0		0
Year three	0		0
Year four	0		0
Year five	0		0
Prior	21,897		36,305
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Converted to Term	0		0
Total	21,897		36,305
Commercial
Total consumer loans held for investment
Year one	80,714		320,163
Year two	275,053		415,270
Year three	366,434		103,529
Year four	97,128		39,640
Year five	40,519		47,302
Prior	105,252		74,707
Revolving Loans Amortized Cost Basis	1,819,711		1,750,299
Revolving Loans Converted to Term	1,176		1,153
Total	2,785,987		2,752,063
Total gross charge-offs
2023	0		0
2022	0		2,158
2021	43		0
2020	0		2,572
2019	0		1,083
Prior	903		4,600
Revolving Loans Amortized Cost Basis, Write Off	0		0
Revolving Loans Converted to Term, Write Off	0		0
Total	946	1,051	10,413
Commercial | Pass
Total consumer loans held for investment
Year one	80,714		314,939
Year two	271,814		384,713
Year three	336,946		86,757
Year four	74,917		38,554
Year five	39,435		43,535
Prior	83,231		45,812
Revolving Loans Amortized Cost Basis	1,772,806		1,725,663
Revolving Loans Converted to Term	1,151		1,044
Total	2,661,014		2,641,017
Commercial | Special mention
Total consumer loans held for investment
Year one	0		4,584
Year two	2,544		13,583
Year three	13,057		12,794
Year four	12,221		541
Year five	75		0
Prior	6,008		10,144
Revolving Loans Amortized Cost Basis	14,184		9,392
Revolving Loans Converted to Term	25		35
Total	48,114		51,073
Commercial | Substandard
Total consumer loans held for investment
Year one	0		640
Year two	695		16,974
Year three	16,431		3,978
Year four	9,990		545
Year five	1,009		3,767
Prior	15,593		15,843
Revolving Loans Amortized Cost Basis	32,721		15,244
Revolving Loans Converted to Term	0		74
Total	76,439		57,065
Commercial | PCD
Total consumer loans held for investment
Year one	0		0
Year two	0		0
Year three	0		0
Year four	0		0
Year five	0		0
Prior	420		2,908
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Converted to Term	0		0
Total	420		2,908
MW
Total consumer loans held for investment
Year one	144		1,905
Year two	1,592		0
Year three	0		0
Year four	0		0
Year five	0		0
Prior	0		0
Revolving Loans Amortized Cost Basis	447,795		375,891
Revolving Loans Converted to Term	0		0
Total	449,531		377,796
Total gross charge-offs
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving Loans Amortized Cost Basis, Write Off	0		0
Revolving Loans Converted to Term, Write Off	0		0
Total	0		0
MW | Pass
Total consumer loans held for investment
Year one	144		1,905
Year two	1,592		0
Year three	0		0
Year four	0		0
Year five	0		0
Prior	0		0
Revolving Loans Amortized Cost Basis	447,795		375,891
Revolving Loans Converted to Term	0		0
Total	449,531		377,796
Consumer
Total consumer loans held for investment
Year one	604		4,552
Year two	3,141		1,045
Year three	868		280
Year four	251		604
Year five	552		101
Prior	1,838		1,839
Revolving Loans Amortized Cost Basis	1,628		1,728
Revolving Loans Converted to Term	0		0
Total	8,882		10,149
Total gross charge-offs
2023	0		0
2022	0		29
2021	0		2
2020	0		0
2019	0		0
Prior	71		205
Revolving Loans Amortized Cost Basis, Write Off	0		0
Revolving Loans Converted to Term, Write Off	0		0
Total	71	62	236
Consumer | Pass
Total consumer loans held for investment
Year one	604		4,552
Year two	3,141		1,045
Year three	866		276
Year four	251		604
Year five	552		89
Prior	1,678		1,678
Revolving Loans Amortized Cost Basis	1,628		1,728
Revolving Loans Converted to Term	0		0
Total	8,720		9,972
Consumer | Special mention
Total consumer loans held for investment
Year one	0		0
Year two	0		0
Year three	0		0
Year four	0		0
Year five	0		0
Prior	82		85
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Converted to Term	0		0
Total	82		85
Consumer | Substandard
Total consumer loans held for investment
Year one	0		0
Year two	0		0
Year three	2		4
Year four	0		0
Year five	0		12
Prior	67		63
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Converted to Term	0		0
Total	69		79
Consumer | PCD
Total consumer loans held for investment
Year one	0		0
Year two	0		0
Year three	0		0
Year four	0		0
Year five	0		0
Prior	11		13
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Converted to Term	0		0
Total	11		13
Construction and land | Real Estate
Total consumer loans held for investment
Year one	32,907		116,926
Year two	112,162		760,573
Year three	797,657		543,926
Year four	377,518		112,702
Year five	34,985		3,089
Prior	6,324		12,421
Revolving Loans Amortized Cost Basis	206,704		184,617
Revolving Loans Converted to Term	0		0
Total	1,568,257		1,734,254
Total gross charge-offs
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving Loans Amortized Cost Basis, Write Off	0		0
Revolving Loans Converted to Term, Write Off	0		0
Total	0	0	0
Construction and land | Real Estate | Pass
Total consumer loans held for investment
Year one	32,907		116,333
Year two	100,050		740,244
Year three	788,951		538,946
Year four	372,550		109,017
Year five	34,954		3,089
Prior	6,324		3,661
Revolving Loans Amortized Cost Basis	205,423		181,940
Revolving Loans Converted to Term	0		0
Total	1,541,159		1,693,230
Construction and land | Real Estate | Special mention
Total consumer loans held for investment
Year one	0		593
Year two	12,112		13,782
Year three	2,000		4,980
Year four	4,968		3,439
Year five	0		0
Prior	0		8,760
Revolving Loans Amortized Cost Basis	1,281		2,677
Revolving Loans Converted to Term	0		0
Total	20,361		34,231
Construction and land | Real Estate | Substandard
Total consumer loans held for investment
Year one	0		0
Year two	0		6,547
Year three	6,706		0
Year four	0		246
Year five	31		0
Prior	0		0
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Converted to Term	0		0
Total	6,737		6,793
Farmland | Real Estate
Total consumer loans held for investment
Year one	132		2,531
Year two	2,517		4,398
Year three	4,372		0
Year four	0		17,999
Year five	17,863		15
Prior	4,927		4,944
Revolving Loans Amortized Cost Basis	1,168		1,227
Revolving Loans Converted to Term	0		0
Total	30,979		31,114
Total gross charge-offs
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving Loans Amortized Cost Basis, Write Off	0		0
Revolving Loans Converted to Term, Write Off	0		0
Total	0	0	0
Farmland | Real Estate | Pass
Total consumer loans held for investment
Year one	132		2,531
Year two	2,517		4,398
Year three	4,372		0
Year four	0		17,999
Year five	17,863		15
Prior	4,927		4,944
Revolving Loans Amortized Cost Basis	1,168		1,227
Revolving Loans Converted to Term	0		0
Total	30,979		31,114
Residential Real Estate | Single Family | Real Estate
Total consumer loans held for investment
Year one	18,518		77,021
Year two	81,629		141,499
Year three	140,172		194,816
Year four	210,478		79,767
Year five	82,764		38,695
Prior	303,620		273,262
Revolving Loans Amortized Cost Basis	114,984		114,804
Revolving Loans Converted to Term	17,236		17,255
Total	969,401		937,119
Total gross charge-offs
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		21
Prior	0		0
Revolving Loans Amortized Cost Basis, Write Off	0		0
Revolving Loans Converted to Term, Write Off	0		0
Total	0	0	21
Residential Real Estate | Single Family | Real Estate | Pass
Total consumer loans held for investment
Year one	18,518		73,289
Year two	77,907		140,824
Year three	139,311		193,914
Year four	209,626		79,767
Year five	82,714		38,589
Prior	288,540		270,193
Revolving Loans Amortized Cost Basis	114,455		114,275
Revolving Loans Converted to Term	17,236		17,255
Total	948,307		928,106
Residential Real Estate | Single Family | Real Estate | Special mention
Total consumer loans held for investment
Year one	0		3,732
Year two	3,722		531
Year three	0		0
Year four	0		0
Year five	0		0
Prior	1,227		238
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Converted to Term	0		0
Total	4,949		4,501
Residential Real Estate | Single Family | Real Estate | Substandard
Total consumer loans held for investment
Year one	0		0
Year two	0		144
Year three	861		902
Year four	852		0
Year five	50		106
Prior	12,739		1,701
Revolving Loans Amortized Cost Basis	529		529
Revolving Loans Converted to Term	0		0
Total	15,031		3,382
Residential Real Estate | Single Family | Real Estate | PCD
Total consumer loans held for investment
Year one	0		0
Year two	0		0
Year three	0		0
Year four	0		0
Year five	0		0
Prior	1,114		1,130
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Converted to Term	0		0
Total	1,114		1,130
Residential Real Estate | Multi-family residential | Real Estate
Total consumer loans held for investment
Year one	0		9,441
Year two	11,788		82,040
Year three	104,244		257,714
Year four	338,897		196,575
Year five	264,985		8,054
Prior	21,038		41,366
Revolving Loans Amortized Cost Basis	10,655		10,627
Revolving Loans Converted to Term	0		0
Total	751,607		605,817
Total gross charge-offs
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		192
Prior	0		0
Revolving Loans Amortized Cost Basis, Write Off	0		0
Revolving Loans Converted to Term, Write Off	0		0
Total	0	0	192
Residential Real Estate | Multi-family residential | Real Estate | Pass
Total consumer loans held for investment
Year one	0		9,441
Year two	11,788		82,040
Year three	104,244		257,714
Year four	338,897		196,575
Year five	264,985		8,054
Prior	21,038		14,570
Revolving Loans Amortized Cost Basis	10,655		10,627
Revolving Loans Converted to Term	0		0
Total	751,607		579,021
Residential Real Estate | Multi-family residential | Real Estate | Special mention
Total consumer loans held for investment
Year one			0
Year two			0
Year three			0
Year four			0
Year five			0
Prior			11,701
Revolving Loans Amortized Cost Basis			0
Revolving Loans Converted to Term			0
Total			11,701
Residential Real Estate | Multi-family residential | Real Estate | Substandard
Total consumer loans held for investment
Year one			0
Year two			0
Year three			0
Year four			0
Year five			0
Prior			15,095
Revolving Loans Amortized Cost Basis			0
Revolving Loans Converted to Term			0
Total			15,095
Commercial Real Estate | OOCRE | Real Estate
Total consumer loans held for investment
Year one	14,365		134,944
Year two	147,401		188,134
Year three	186,468		117,817
Year four	107,166		94,882
Year five	93,846		42,573
Prior	234,297		210,910
Revolving Loans Amortized Cost Basis	4,833		4,828
Revolving Loans Converted to Term	0		0
Total	788,376		794,088
Total gross charge-offs
2023	0		0
2022	0		0
2021	0		0
2020	0		369
2019	0		5
Prior	120		481
Revolving Loans Amortized Cost Basis, Write Off	0		0
Revolving Loans Converted to Term, Write Off	0		0
Total	120	116	855
Commercial Real Estate | OOCRE | Real Estate | Pass
Total consumer loans held for investment
Year one	14,365		129,463
Year two	141,955		178,777
Year three	176,643		113,207
Year four	100,173		90,219
Year five	89,496		39,876
Prior	201,542		166,270
Revolving Loans Amortized Cost Basis	4,623		4,618
Revolving Loans Converted to Term	0		0
Total	728,797		722,430
Commercial Real Estate | OOCRE | Real Estate | Special mention
Total consumer loans held for investment
Year one	0		5,481
Year two	5,446		0
Year three	468		2,479
Year four	4,030		1,019
Year five	1,405		1,961
Prior	15,926		14,775
Revolving Loans Amortized Cost Basis	210		210
Revolving Loans Converted to Term	0		0
Total	27,485		25,925
Commercial Real Estate | OOCRE | Real Estate | Substandard
Total consumer loans held for investment
Year one	0		0
Year two	0		9,357
Year three	9,357		2,131
Year four	2,963		3,644
Year five	2,945		736
Prior	6,261		11,695
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Converted to Term	0		0
Total	21,526		27,563
Commercial Real Estate | OOCRE | Real Estate | PCD
Total consumer loans held for investment
Year one	0		0
Year two	0		0
Year three	0		0
Year four	0		0
Year five	0		0
Prior	10,568		18,170
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Converted to Term	0		0
Total	10,568		18,170
Commercial Real Estate | NOOCRE | Real Estate
Total consumer loans held for investment
Year one	17,713		33,525
Year two	50,026		733,918
Year three	728,535		529,113
Year four	576,913		273,924
Year five	268,891		219,282
Prior	677,297		529,862
Revolving Loans Amortized Cost Basis	33,047		30,524
Revolving Loans Converted to Term	571		577
Total	2,352,993		2,350,725
Total gross charge-offs
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	4,293		13,649
Revolving Loans Amortized Cost Basis, Write Off	0		0
Revolving Loans Converted to Term, Write Off	0		0
Total	4,293	$ 0	13,649
Commercial Real Estate | NOOCRE | Real Estate | Pass
Total consumer loans held for investment
Year one	17,713		33,525
Year two	50,026		724,110
Year three	667,589		500,354
Year four	546,455		247,385
Year five	239,974		148,046
Prior	497,749		381,559
Revolving Loans Amortized Cost Basis	33,047		30,524
Revolving Loans Converted to Term	571		577
Total	2,053,124		2,066,080
Commercial Real Estate | NOOCRE | Real Estate | Special mention
Total consumer loans held for investment
Year one	0		0
Year two	0		5,950
Year three	57,088		25,985
Year four	27,217		26,175
Year five	28,614		68,616
Prior	135,930		55,805
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Converted to Term	0		0
Total	248,849		182,531
Commercial Real Estate | NOOCRE | Real Estate | Substandard
Total consumer loans held for investment
Year one	0		0
Year two	0		3,858
Year three	3,858		2,774
Year four	3,241		364
Year five	303		2,620
Prior	33,834		78,414
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Converted to Term	0		0
Total	41,236		88,030
Commercial Real Estate | NOOCRE | Real Estate | PCD
Total consumer loans held for investment
Year one	0		0
Year two	0		0
Year three	0		0
Year four	0		0
Year five	0		0
Prior	9,784		14,084
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Converted to Term	0		0
Total	$ 9,784		$ 14,084

XML

LHI and ACL - Servicing Assets (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Servicing Asset at Amortized Cost [Line Items]
Servicing asset	$ 586,583,000	$ 571,611,000
Summary of changes in related servicing assets
Balance at beginning of period	13,258,000	14,880,000
Increase from loan sales	635,000	959,000
Servicing asset impairment, net recoveries	222,000	424,000
Amortization charged as a reduction to income	(1,493,000)	(1,015,000)
Balance at end of period	12,622,000	15,248,000
Valuation allowance recorded	1,310,000	2,027,000
Interest receivable	$ 0		$ 0
Investment, Type [Extensible Enumeration]	Interest-Only-Strip [Member]		Interest-Only-Strip [Member]
Proceeds from sale of loans	$ 24,148,000	5,520,000
Gain on sale of loans	10,000	6,000
SBA LHI
Summary of changes in related servicing assets
Proceeds from sale of loans	13,233,000	6,340,000
Gain on sale of loans	1,176,000	148,000
USDA LHI
Summary of changes in related servicing assets
Proceeds from sale of loans	0	44,002,000
Gain on sale of loans	$ 0	$ 6,984,000

XML

LHI and ACL - Loans Held for Sale (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Loans and Allowance for Credit Losses
Total LHFS	$ 64,762	$ 79,072
SBA/USDA construction and land
Loans and Allowance for Credit Losses
Total LHFS	41,456	41,492
1 - 4 family residential
Loans and Allowance for Credit Losses
Total LHFS	772	788
SBA OOCRE
Loans and Allowance for Credit Losses
Total LHFS	3,976	16,758
NOOCRE
Loans and Allowance for Credit Losses
Total LHFS	10,500	10,500
SBA commercial
Loans and Allowance for Credit Losses
Total LHFS	$ 8,058	$ 9,534

XML

Fair Value - Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Assets measured at fair value
AFS debt securities	$ 1,166,268	$ 1,076,639
Equity securities with a readily determinable fair value	9,792	9,897
Derivative asset	19,504	20,820
Derivative liability	55,090	48,612
Designated as Hedging Instrument
Assets measured at fair value
Derivative asset	14,370	18,814
Derivative liability	50,431	47,121
Non-hedging Derivatives
Assets measured at fair value
Derivative asset	38,665	31,469
Derivative liability	38,190	30,954
Recurring
Assets measured at fair value
AFS debt securities	1,166,268	1,076,639
Equity securities with a readily determinable fair value	9,792	9,897
LHFS	53,490	67,784
Recurring | Level 1 Inputs
Assets measured at fair value
AFS debt securities	0	0
Equity securities with a readily determinable fair value	9,792	9,897
LHFS	0	0
Recurring | Level 2 Inputs
Assets measured at fair value
AFS debt securities	1,166,268	1,076,639
Equity securities with a readily determinable fair value	0	0
LHFS	53,490	67,784
Recurring | Level 3 Inputs
Assets measured at fair value
AFS debt securities	0	0
Equity securities with a readily determinable fair value	0	0
LHFS	0	0
Interest rate swaps | Recurring | Designated as Hedging Instrument
Assets measured at fair value
Derivative asset	14,370	18,814
Derivative liability	50,431	47,121
Interest rate swaps | Recurring | Level 1 Inputs | Designated as Hedging Instrument
Assets measured at fair value
Derivative asset	0	0
Derivative liability	0	0
Interest rate swaps | Recurring | Level 2 Inputs | Designated as Hedging Instrument
Assets measured at fair value
Derivative asset	14,370	18,814
Derivative liability	50,431	47,121
Interest rate swaps | Recurring | Level 3 Inputs | Designated as Hedging Instrument
Assets measured at fair value
Derivative asset	0	0
Derivative liability	0	0
Interest rate swaps | Financial Institution Counterparty | Non-hedging Derivatives
Assets measured at fair value
Derivative asset	36,357	28,007
Derivative liability	1,068	2,322
Interest rate swaps | Financial Institution Counterparty | Recurring | Non-hedging Derivatives
Assets measured at fair value
Derivative asset	36,357	28,007
Derivative liability	1,068	2,322
Interest rate swaps | Financial Institution Counterparty | Recurring | Level 1 Inputs | Non-hedging Derivatives
Assets measured at fair value
Derivative asset	0	0
Derivative liability	0	0
Interest rate swaps | Financial Institution Counterparty | Recurring | Level 2 Inputs | Non-hedging Derivatives
Assets measured at fair value
Derivative asset	36,357	28,007
Derivative liability	1,068	2,322
Interest rate swaps | Financial Institution Counterparty | Recurring | Level 3 Inputs | Non-hedging Derivatives
Assets measured at fair value
Derivative asset	0	0
Derivative liability	0	0
Interest rate swaps | Commercial Customer Counterparty | Non-hedging Derivatives
Assets measured at fair value
Derivative asset	941	2,118
Derivative liability	35,755	27,288
Interest rate swaps | Commercial Customer Counterparty | Recurring | Non-hedging Derivatives
Assets measured at fair value
Derivative asset	941	2,118
Derivative liability	35,755	27,288
Interest rate swaps | Commercial Customer Counterparty | Recurring | Level 1 Inputs | Non-hedging Derivatives
Assets measured at fair value
Derivative asset	0	0
Derivative liability	0	0
Interest rate swaps | Commercial Customer Counterparty | Recurring | Level 2 Inputs | Non-hedging Derivatives
Assets measured at fair value
Derivative asset	941	2,118
Derivative liability	35,755	27,288
Interest rate swaps | Commercial Customer Counterparty | Recurring | Level 3 Inputs | Non-hedging Derivatives
Assets measured at fair value
Derivative asset	0	0
Derivative liability	0	0
Interest rate caps and corridors | Financial Institution Counterparty | Recurring | Non-hedging Derivatives
Assets measured at fair value
Derivative asset	1,367	1,344
Interest rate caps and corridors | Financial Institution Counterparty | Recurring | Level 1 Inputs | Non-hedging Derivatives
Assets measured at fair value
Derivative asset	0	0
Interest rate caps and corridors | Financial Institution Counterparty | Recurring | Level 2 Inputs | Non-hedging Derivatives
Assets measured at fair value
Derivative asset	1,367	1,344
Interest rate caps and corridors | Financial Institution Counterparty | Recurring | Level 3 Inputs | Non-hedging Derivatives
Assets measured at fair value
Derivative asset	0	0
Interest rate caps and corridors | Commercial Customer Counterparty | Recurring | Non-hedging Derivatives
Assets measured at fair value
Derivative liability	1,367	1,344
Interest rate caps and corridors | Commercial Customer Counterparty | Recurring | Level 1 Inputs | Non-hedging Derivatives
Assets measured at fair value
Derivative liability	0	0
Interest rate caps and corridors | Commercial Customer Counterparty | Recurring | Level 2 Inputs | Non-hedging Derivatives
Assets measured at fair value
Derivative liability	1,367	1,344
Interest rate caps and corridors | Commercial Customer Counterparty | Recurring | Level 3 Inputs | Non-hedging Derivatives
Assets measured at fair value
Derivative liability	$ 0	$ 0

XML

Fair Value - Non-recurring Basis (Details)	Mar. 31, 2024 USD ($) Property	Dec. 31, 2023 USD ($) Property	Mar. 31, 2023 USD ($)
Assets measured at fair value
Valuation allowance recorded	$ 1,310,000		$ 2,027,000
Number of properties | Property	5	0
Non-recurring
Assets measured at fair value
Collateral dependent loans with an ACL	$ 13,160,000	$ 14,274,000
Servicing assets with a valuation allowance	4,728,000	6,682,000
OREO	18,445,000
Collateral dependent loans with an ACL, gross	16,117,000	17,660,000
Impaired loans, specific allowance	2,957,000	3,386,000
Servicing asset at fair value, gross	6,038,000	8,214,000
Valuation allowance for servicing asset		1,532,000
Liabilities measured at fair value	0	0
Non-recurring | Level 1 Inputs
Assets measured at fair value
Collateral dependent loans with an ACL	0	0
Servicing assets with a valuation allowance	0	0
OREO	0
Non-recurring | Level 2 Inputs
Assets measured at fair value
Collateral dependent loans with an ACL	0	0
Servicing assets with a valuation allowance	0	0
OREO	0
Non-recurring | Level 3 Inputs
Assets measured at fair value
Collateral dependent loans with an ACL	13,160,000	14,274,000
Servicing assets with a valuation allowance	4,728,000	$ 6,682,000
OREO	$ 18,445,000

XML

Fair Value - Financial Instruments (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Financial assets:
HTM debt securities	$ 155,741,000	$ 160,021,000
Securities purchased under agreements to resell	0
Equity securities without a readily determinable fair value	38,194,000	11,624,000
FHLB and FRB stock	54,094,000	53,699,000
Financial liabilities:
Subordinated debentures and subordinated notes	230,034,000	229,783,000
Carrying Amount
Financial assets:
Cash and cash equivalents	740,769,000	629,063,000
HTM debt securities	178,662,000	180,403,000
LHFS	11,272,000	11,288,000
LHI		9,577,180,000
Accrued interest receivable	51,476,000	53,313,000
BOLI	85,359,000	84,833,000
Servicing asset	7,894,000	6,576,000
Equity securities without a readily determinable fair value	38,194,000	11,624,000
FHLB and FRB stock	54,094,000	53,699,000
Financial liabilities:
Noninterest-bearing deposits	2,349,211,000	2,218,036,000
Interest-bearing deposits	8,304,609,000	8,120,159,000
Advances from FHLB	100,000,000	100,000,000
Accrued interest payable	33,200,000	41,948,000
Subordinated debentures and subordinated notes	230,034,000	229,783,000
Level 1 | Fair Value
Financial assets:
Cash and cash equivalents	0	0
HTM debt securities	0	0
LHFS	0	0
LHI		0
Accrued interest receivable	0	0
BOLI	0	0
Servicing asset	0	0
Financial liabilities:
Noninterest-bearing deposits	0	0
Interest-bearing deposits	0	0
Advances from FHLB	0	0
Accrued interest payable	0	0
Subordinated debentures and subordinated notes	0	0
Level 2 | Fair Value
Financial assets:
Cash and cash equivalents	740,769,000	629,063,000
HTM debt securities	155,741,000	160,021,000
LHFS	11,272,000	11,288,000
LHI		0
Accrued interest receivable	51,476,000	53,313,000
BOLI	85,359,000	84,833,000
Servicing asset	7,894,000	6,576,000
Financial liabilities:
Noninterest-bearing deposits	2,349,211,000	2,218,036,000
Interest-bearing deposits	8,147,449,000	8,096,209,000
Advances from FHLB	100,056,000	100,051,000
Accrued interest payable	33,200,000	41,948,000
Subordinated debentures and subordinated notes	230,034,000	229,783,000
Level 3 | Fair Value
Financial assets:
Cash and cash equivalents	0	0
HTM debt securities	0	0
LHFS	0	0
LHI		9,322,744,000
Accrued interest receivable	0	0
BOLI	0	0
Servicing asset	0	0
Financial liabilities:
Noninterest-bearing deposits	0	0
Interest-bearing deposits	0	0
Advances from FHLB	0	0
Accrued interest payable	0	0
Subordinated debentures and subordinated notes	0	$ 0
Real Estate, Commercial and Consumer Portfolio Segments | Carrying Amount
Financial assets:
LHI	9,573,890,000
Real Estate, Commercial and Consumer Portfolio Segments | Level 1 | Fair Value
Financial assets:
LHI	0
Real Estate, Commercial and Consumer Portfolio Segments | Level 2 | Fair Value
Financial assets:
LHI	0
Real Estate, Commercial and Consumer Portfolio Segments | Level 3 | Fair Value
Financial assets:
LHI	$ 9,409,404,000

XML

Derivative Financial Instruments - Balance Sheet Information (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Derivative [Line Items]
Notional Amount	$ 3,929,290	$ 3,833,144
Asset Derivative
Gross derivatives	19,504	20,820
Offsetting derivative assets	(33,531)	(29,463)
Liability Derivative
Gross derivatives	55,090	48,612
Offsetting derivative liabilities	(33,531)	(29,463)
Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	1,475,000	1,475,000
Asset Derivative
Gross derivatives	14,370	18,814
Liability Derivative
Gross derivatives	50,431	47,121
Designated as Hedging Instrument | Interest rate swap on money market deposit account payments
Derivative [Line Items]
Notional Amount	250,000	250,000
Asset Derivative
Gross derivatives	11,047	12,208
Liability Derivative
Gross derivatives	0	0
Designated as Hedging Instrument | Interest rate swaps on fixed rate advances/brokered CDs
Derivative [Line Items]
Notional Amount	200,000	200,000
Asset Derivative
Gross derivatives	0	0
Liability Derivative
Gross derivatives	1,286	4,296
Designated as Hedging Instrument | Interest rate swaps on customer loan interest payments
Derivative [Line Items]
Notional Amount	375,000	375,000
Asset Derivative
Gross derivatives	0	0
Liability Derivative
Gross derivatives	45,237	40,055
Designated as Hedging Instrument | Interest rate collars on customer loan interest payments
Derivative [Line Items]
Notional Amount	450,000	450,000
Asset Derivative
Gross derivatives	1,151	2,304
Liability Derivative
Gross derivatives	3,908	2,770
Designated as Hedging Instrument | Interest rate floor on customer loan interest payments
Derivative [Line Items]
Notional Amount	200,000	200,000
Asset Derivative
Gross derivatives	2,172	4,302
Liability Derivative
Gross derivatives	0	0
Not Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	2,454,290	2,358,144
Asset Derivative
Gross derivatives	38,665	31,469
Liability Derivative
Gross derivatives	38,190	30,954
Financial Institution Counterparty | Not Designated as Hedging Instrument | Interest rate swaps
Derivative [Line Items]
Notional Amount	907,171	893,702
Asset Derivative
Gross derivatives	36,357	28,007
Liability Derivative
Gross derivatives	1,068	2,322
Financial Institution Counterparty | Not Designated as Hedging Instrument | Interest rate caps and corridors
Derivative [Line Items]
Notional Amount	319,974	285,370
Asset Derivative
Gross derivatives	1,367	1,344
Liability Derivative
Gross derivatives	0	0
Commercial Customer Counterparty | Not Designated as Hedging Instrument | Interest rate swaps
Derivative [Line Items]
Notional Amount	907,171	893,702
Asset Derivative
Gross derivatives	941	2,118
Liability Derivative
Gross derivatives	35,755	27,288
Commercial Customer Counterparty | Not Designated as Hedging Instrument | Interest rate caps and corridors
Derivative [Line Items]
Notional Amount	319,974	285,370
Asset Derivative
Gross derivatives	0	0
Liability Derivative
Gross derivatives	$ 1,367	$ 1,344

XML

Derivative Financial Instruments - AOCI Reclassification (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
(Loss) gain recognized in other comprehensive income on derivative	$ (8,495)	$ 7,077
Gain (loss) reclassified from accumulated other comprehensive income into income	(836)	(157)
Interest rate swap on borrowing advances | Interest Expense | Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
(Loss) gain recognized in other comprehensive income on derivative	(1,094)	(1,082)
Gain (loss) reclassified from accumulated other comprehensive income into income	1,094	1,082
Interest rate swap on money market deposit account payments | Interest Expense | Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
(Loss) gain recognized in other comprehensive income on derivative	1,849	(3,977)
Gain (loss) reclassified from accumulated other comprehensive income into income	3,439	2,568
Interest rate swaps, collars and floors on customer loan interest payments | Interest Income | Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
(Loss) gain recognized in other comprehensive income on derivative	(9,250)	12,136
Gain (loss) reclassified from accumulated other comprehensive income into income	(5,369)	(3,807)
Interest rate swaps, caps and collars | Non-hedging Derivatives
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Net gain recognized in other noninterest income	$ 449	$ 212

XML

Derivative Financial Instruments - Summary of Interest Rate Swaps Outstanding (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Derivative [Line Items]
Notional Amount	$ 3,929,290	$ 3,833,144
Non-hedging Derivatives
Derivative [Line Items]
Notional Amount	2,454,290	2,358,144
Non-hedging Derivatives | Commercial Customer Counterparty | Interest rate swaps
Derivative [Line Items]
Notional Amount	$ 907,171	$ 893,702
Maturity (in years)	3 years 10 months 24 days	4 years 1 month 6 days
Fair Value	$ (34,815)	$ (25,170)
Non-hedging Derivatives | Commercial Customer Counterparty | Interest rate caps and corridors
Derivative [Line Items]
Notional Amount	$ 319,974	$ 285,370
Maturity (in years)	6 months	9 months 18 days
Fair Value	$ (1,367)	$ (1,344)
Non-hedging Derivatives | Commercial Customer Counterparty | SOFR | Interest rate caps and corridors
Derivative [Line Items]
Floating Rate	0.00%	0.00%
Non-hedging Derivatives | Commercial Customer Counterparty | Minimum | Interest rate swaps
Derivative [Line Items]
Fixed Rate	2.40%	2.40%
Non-hedging Derivatives | Commercial Customer Counterparty | Minimum | Interest rate caps and corridors
Derivative [Line Items]
Fixed Rate	3.50%	3.50%
Non-hedging Derivatives | Commercial Customer Counterparty | Minimum | LIBOR | Interest rate swaps
Derivative [Line Items]
Floating Rate	3.00%	3.00%
Non-hedging Derivatives | Commercial Customer Counterparty | Minimum | LIBOR | Interest rate caps and corridors
Derivative [Line Items]
Floating Rate		0.00%
Non-hedging Derivatives | Commercial Customer Counterparty | Minimum | Secured Overnight Financing Rate (SOFR) - CME | Interest rate swaps
Derivative [Line Items]
Floating Rate	0.00%	0.00%
Non-hedging Derivatives | Commercial Customer Counterparty | Minimum | Secured Overnight Financing Rate (SOFR) - CME | Interest rate caps and corridors
Derivative [Line Items]
Floating Rate	0.00%
Non-hedging Derivatives | Commercial Customer Counterparty | Minimum | Secured Overnight Financing Rate (SOFR) - NYFD | Interest rate swaps
Derivative [Line Items]
Floating Rate	2.50%	2.50%
Non-hedging Derivatives | Commercial Customer Counterparty | Maximum | Interest rate swaps
Derivative [Line Items]
Fixed Rate	7.40%	7.40%
Non-hedging Derivatives | Commercial Customer Counterparty | Maximum | Interest rate caps and corridors
Derivative [Line Items]
Fixed Rate	7.50%	7.50%
Non-hedging Derivatives | Commercial Customer Counterparty | Maximum | Secured Overnight Financing Rate (SOFR) - CME | Interest rate swaps
Derivative [Line Items]
Floating Rate	3.80%	3.80%
Non-hedging Derivatives | Commercial Customer Counterparty | Maximum | Secured Overnight Financing Rate (SOFR) - CME | Interest rate caps and corridors
Derivative [Line Items]
Floating Rate	3.00%	3.00%
Non-hedging Derivatives | Commercial Customer Counterparty | Maximum | Secured Overnight Financing Rate (SOFR) - NYFD | Interest rate swaps
Derivative [Line Items]
Floating Rate	3.00%	3.00%
Non-hedging Derivatives | Financial Institution Counterparty | Interest rate swaps
Derivative [Line Items]
Notional Amount	$ 907,171	$ 893,702
Maturity (in years)	3 years 10 months 24 days	4 years 1 month 6 days
Fair Value	$ 35,288	$ 25,685
Non-hedging Derivatives | Financial Institution Counterparty | Interest rate caps and corridors
Derivative [Line Items]
Notional Amount	$ 319,974	$ 285,370
Maturity (in years)	6 months	9 months 18 days
Fair Value	$ 1,367	$ 1,344
Non-hedging Derivatives | Financial Institution Counterparty | SOFR | Interest rate caps and corridors
Derivative [Line Items]
Floating Rate	0.00%	0.00%
Non-hedging Derivatives | Financial Institution Counterparty | Minimum | Interest rate swaps
Derivative [Line Items]
Fixed Rate	2.41%	2.40%
Non-hedging Derivatives | Financial Institution Counterparty | Minimum | Interest rate caps and corridors
Derivative [Line Items]
Fixed Rate	3.50%	3.50%
Non-hedging Derivatives | Financial Institution Counterparty | Minimum | LIBOR | Interest rate swaps
Derivative [Line Items]
Floating Rate	3.00%	3.00%
Non-hedging Derivatives | Financial Institution Counterparty | Minimum | LIBOR | Interest rate caps and corridors
Derivative [Line Items]
Floating Rate		0.00%
Non-hedging Derivatives | Financial Institution Counterparty | Minimum | Secured Overnight Financing Rate (SOFR) - CME | Interest rate swaps
Derivative [Line Items]
Floating Rate	0.00%	0.00%
Non-hedging Derivatives | Financial Institution Counterparty | Minimum | Secured Overnight Financing Rate (SOFR) - CME | Interest rate caps and corridors
Derivative [Line Items]
Floating Rate	0.00%
Non-hedging Derivatives | Financial Institution Counterparty | Minimum | Secured Overnight Financing Rate (SOFR) - NYFD | Interest rate swaps
Derivative [Line Items]
Floating Rate	2.50%	2.50%
Non-hedging Derivatives | Financial Institution Counterparty | Maximum | Interest rate swaps
Derivative [Line Items]
Fixed Rate	7.37%	7.40%
Non-hedging Derivatives | Financial Institution Counterparty | Maximum | Interest rate caps and corridors
Derivative [Line Items]
Fixed Rate	7.50%	7.50%
Non-hedging Derivatives | Financial Institution Counterparty | Maximum | Secured Overnight Financing Rate (SOFR) - CME | Interest rate swaps
Derivative [Line Items]
Floating Rate	3.80%	3.80%
Non-hedging Derivatives | Financial Institution Counterparty | Maximum | Secured Overnight Financing Rate (SOFR) - CME | Interest rate caps and corridors
Derivative [Line Items]
Floating Rate	3.00%
Non-hedging Derivatives | Financial Institution Counterparty | Maximum | Secured Overnight Financing Rate (SOFR) - NYFD | Interest rate swaps
Derivative [Line Items]
Floating Rate	3.00%	3.00%

XML

OBS Loan Commitments - Financial Instruments Approximate Value (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Financial instruments with off-balance sheet risk
Total commitments	$ 3,742,185	$ 3,998,795
Commitments to extend credit
Financial instruments with off-balance sheet risk
Total commitments	2,834,310	3,083,501
MW commitments
Financial instruments with off-balance sheet risk
Total commitments	794,470	803,704
Standby and commercial letters of credit
Financial instruments with off-balance sheet risk
Total commitments	$ 113,405	$ 111,590

XML

OBS Loan Commitments - Allowance for Unfunded Commitments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Allowance For Unfunded Commitments [Roll Forward]
Beginning balance for ACL on unfunded commitments	$ 8,045	$ 10,086
(Benefit) provision for credit losses on unfunded commitments	(1,541)	1,497
Ending balance of ACL on unfunded commitments	$ 6,504	$ 11,583

XML

Stock-Based Awards - 2010 Plan Options (Details) - 2010 Incentive Plan - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ 0	$ 0
Non-Performance Based Stock Options
Shares Underlying Options
Outstanding at beginning of period (in shares)		1,000
Exercised (in shares)		(1,000)
Outstanding at the end of period (in shares)		0	1,000
Options exercisable at end of period (in shares)		0
Weighted Exercise Price
Outstanding at beginning of period (in dollars per share)		$ 10.43
Exercised (in dollars per share)		10.43
Outstanding at the end of period (in dollars per share)		0	$ 10.43
Options exercisable at end of period (in dollars per share)		$ 0
Weighted Average Contractual Term
Outstanding (in years)			1 year 25 days
Exercisable		$ 0
Non-performance-based stock options exercised	$ 0	$ 16,000

XML

Stock-Based Awards - 2022 Grant Terms and Stock Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, cliff vesting period (in years)	3 years
2022 Equity Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ 2,459	$ 2,465
Veritex (Green) 2014 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ 430	$ 422

XML

Stock-Based Awards - 2022 Equity Plan - Options (Details) - 2022 Equity Plan - Non-Performance Based Stock Options - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Shares Underlying Options
Outstanding at beginning of period (in shares)	602,573	657,494
Forfeited (in shares)		(1,666)
Cancelled (in shares)		(3,804)
Exercised (in shares)		(3,951)
Outstanding at the end of period (in shares)	602,573	648,073
Options exercisable at end of period (in shares)	602,573	610,073
Weighted Exercise Price
Outstanding at beginning of period (in dollars per share)	$ 24.40	$ 24.47
Forfeited (in dollars per share)		17.38
Cancelled (in dollars per share)		29.13
Exercised (in dollars per share)		21.38
Outstanding at the end of period (in dollars per share)	24.40	24.48
Options exercisable at end of period (in dollars per share)	$ 24.40	$ 24.74
Weighted Average Contractual Term
Outstanding (in years)	4 years 7 months 2 days	5 years 2 months 26 days
Exercisable (in years)	4 years 7 months 2 days	5 years 1 month 17 days
Aggregate Intrinsic Value
Outstanding	$ 215,379
Exercisable	$ 215,379
Unrecognized compensation expense		$ 122

XML

Stock-Based Awards - 2022 Equity Plan - RSUs and PSUs (Details) - 2022 Equity Plan - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
RSUs
Units
Outstanding at the beginning of the period (in shares)	948,513	955,104
Granted (in shares)	190,018	224,165
Vested into shares (in shares)	(159,113)	(162,952)
Forfeited (in shares)	(4,700)	(16,394)
Outstanding at the end of the period (in shares)	974,718	999,923
Weighted Average Grant Date Fair Value
Outstanding at the beginning of the period (in dollars per share)	$ 27.52	$ 28.38
Granted (in dollars per share)	21.94	27.90
Vested into shares (in dollars per share)	29.87	30.23
Forfeited (in dollars per share)	30.73	31.77
Outstanding at the end of the period (in dollars per share)	$ 26.03	$ 27.87
Additional disclosures
Equity instrument other than option, units vested	$ 3,057	$ 3,044
PSUs
Units
Outstanding at the beginning of the period (in shares)	129,786	126,707
Granted (in shares)	113,144	53,310
Vested into shares (in shares)	(56,729)	(41,781)
Outstanding at the end of the period (in shares)	186,201	129,768
Weighted Average Grant Date Fair Value
Outstanding at the beginning of the period (in dollars per share)	$ 30.28	$ 31.19
Granted (in dollars per share)	18.84	27.55
Vested into shares (in dollars per share)	25.94	26.42
Outstanding at the end of the period (in dollars per share)	$ 25.01	$ 30.28
Additional disclosures
Equity instrument other than option, units vested	$ 1,133	$ 1,070
Restricted Stock Units and Performance Stock Based Units
Additional disclosures
Unrecognized compensation expense	$ 1,383	3,260	$ 1,781
Requisite service period to recognize compensation cost (in years)	1 year 1 month 13 days
Non-Performance Based Stock Options
Additional disclosures
Unrecognized compensation expense		122
Non-performance-based stock options exercised	$ 0	$ 31

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Stock-Based Awards - Veritex Green 2014 Plan - Options (Details) - Veritex (Green) 2014 Plan - Non-Performance Based Stock Options - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Shares Underlying Options
Outstanding at beginning of period (in shares)	124,499,000	155,212,000
Cancelled (in shares)		(505,000)
Exercised (in shares)		(13,266,000)
Outstanding at the end of period (in shares)	124,499,000	141,441,000
Options exercisable at end of period (in shares)	124,499,000	141,441,000
Weighted Exercise Price
Outstanding at beginning of period (in dollars per share)	$ 22.00	$ 19.83
Cancelled (in dollars per share)		21.38
Exercised (in dollars per share)		21.38
Outstanding at the end of period (in dollars per share)	22.00	21.86
Options exercisable at end of period (in dollars per share)	$ 22.00	$ 21.86
Weighted Average Contractual Term
Outstanding (in years)	3 years 5 months 15 days	4 years 10 months 13 days
Exercisable (in years)	3 years 5 months 15 days	4 years 10 months 13 days
Aggregate Intrinsic Value
Outstanding	$ 391,054
Exercisable	$ 391,054
Weighted average fair value of options granted during the period (in dollars per share)	$ 0
Unrecognized compensation expense	$ 0	$ 0	$ 0

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Stock-Based Awards - Veritex (Green) 2014 Plan - RSUs and PSUs (Details) - Veritex (Green) 2014 Plan - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
RSUs
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Outstanding at the beginning of the period (in shares)	64,719	86,233
Vested into shares (in shares)	(3,308)	(19,282)
Forfeited (in shares)		(2,232)
Outstanding at the end of the period (in shares)	61,411	64,719
Weighted Average Grant Date Fair Value
Outstanding at the beginning of the period (in dollars per share)	$ 18.26	$ 21.09
Vested into shares (in dollars per share)	32.20	29.66
Forfeited (in dollars per share)		29.13
Outstanding at the end of the period (in dollars per share)	$ 17.51	$ 18.26
PSUs
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Outstanding at the beginning of the period (in shares)	10,642	19,173
Granted (in shares)	1,246
Vested into shares (in shares)	(7,477)	(8,531)
Outstanding at the end of the period (in shares)	4,411	10,642
Weighted Average Grant Date Fair Value
Outstanding at the beginning of the period (in dollars per share)	$ 31.93	$ 30.74
Granted (in dollars per share)	18.84
Vested into shares (in dollars per share)	25.94	25.94
Outstanding at the end of the period (in dollars per share)	$ 40.38	$ 31.93
Restricted Stock Units and Performance Stock Based Units
Weighted Average Grant Date Fair Value
Unrecognized compensation expense	$ 18,421	$ 15,278	$ 14,692
Requisite service period to recognize compensation cost (in years)	2 years 7 months 6 days

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Stock-Based Awards - Veritex (Green) 2014 Plan - Fair Value Options Exercised and Restricted Stock Units Vested (Details) - Veritex (Green) 2014 Plan - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Non-Performance Based Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-performance-based stock options exercised	$ 0	$ 18
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity instrument other than option, units vested	326	1,990
PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity instrument other than option, units vested	$ 149	$ 227

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Stock-Based Awards - Green Bancorp Inc. 2010 Option Plan (Details) - Non-Performance Based Stock Options - Green Bancorp Inc. 2010 Stock Option Plan - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Shares Underlying Options
Outstanding at beginning of period (in shares)	10,784	43,162
Exercised (in shares)		(29,630)
Outstanding at the end of period (in shares)	10,784	13,532
Weighted Exercise Price
Outstanding at beginning of period (in dollars per share)	$ 12.65	$ 13.11
Exercised (in dollars per share)		13.22
Outstanding at the end of period (in dollars per share)	$ 12.65	$ 12.86
Weighted Average Contractual Term
Outstanding (in years)	3 years 9 months 25 days	3 years 11 months 8 days
Aggregate Intrinsic Value
Outstanding	$ 85
Non-performance-based stock options exercised	$ 0	$ 365

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Income Taxes (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Income tax expense for the period	$ 7,237,000	$ 11,012,000
Effective tax rate	23.10%	22.30%
Net discrete tax expense (benefit), true-up adjustment	$ 384,000	$ 112,000
Effective tax rate excluding discrete tax item	21.80%	22.10%
Valuation allowance	$ 0		$ 4,249,000

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Capital Requirements and Restrictions on Retained Earnings (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) $ / shares	Mar. 31, 2023 USD ($) $ / shares	Dec. 31, 2023 USD ($)
Total capital (to RWA)
Actual amount	$ 1,520,656		$ 1,500,703
Actual ratio (as a percent)	0.1333		0.1318
For capital adequacy purposes amount	$ 912,622		$ 910,897
For capital adequacy purposes ratio (as a percent)	0.080		0.080
Tier 1 capital (to RWA)
Actual amount	$ 1,212,512		$ 1,202,252
Actual ratio (as a percent)	0.1063		0.1056
For capital adequacy purposes amount	$ 684,391		$ 683,098
For capital adequacy purposes ratio (as a percent)	0.060		0.060
CET1 (to RWA)
Actual amount	$ 1,182,567		$ 1,172,362
Actual ratio (as a percent)	10.37%		10.29%
For capital adequacy purposes amount	$ 513,168		$ 512,695
For capital adequacy purposes amount (as a percent)	4.50%		4.50%
Tier 1 capital (to average assets)
Actual amount	$ 1,212,512		$ 1,202,252
Actual ratio (as a percent)	0.1012		0.1003
For capital adequacy purposes amount	$ 479,254		$ 479,462
For capital adequacy purposes ratio (as a percent)	0.040		0.040
Dividends paid	$ 10,899	$ 10,837
Bank's capital conservation buffer (in percent)	0.0498
Bank
Total capital (to RWA)
Actual amount	$ 1,475,046		$ 1,467,960
Actual ratio (as a percent)	0.1298		0.1290
For capital adequacy purposes amount	$ 909,119		$ 910,363
For capital adequacy purposes ratio (as a percent)	0.080		0.080
To be well capitalized under prompt corrective action provisions amount	$ 1,136,399		$ 1,137,953
To be well capitalized under prompt corrective action provisions ratio (as a percent)	0.100		0.100
Tier 1 capital (to RWA)
Actual amount	$ 1,365,973		$ 1,368,384
Actual ratio (as a percent)	0.1202		0.1203
For capital adequacy purposes amount	$ 681,850		$ 682,486
For capital adequacy purposes ratio (as a percent)	0.060		0.060
To be well capitalized under prompt corrective action provisions amount	$ 909,133		$ 909,981
To be well capitalized under prompt corrective action provisions ratio (as a percent)	0.080		0.080
CET1 (to RWA)
Actual amount	$ 1,365,973		$ 1,368,384
Actual ratio (as a percent)	12.02%		12.03%
For capital adequacy purposes amount	$ 511,388		$ 511,864
For capital adequacy purposes amount (as a percent)	4.50%		4.50%
To be well capitalized under prompt corrective action provisions amount	$ 738,671		$ 739,360
To be well capitalized under prompt corrective action provisions ratio (as a percent)	6.50%		6.50%
Tier 1 capital (to average assets)
Actual amount	$ 1,365,973		$ 1,368,384
Actual ratio (as a percent)	0.1141		0.1143
For capital adequacy purposes amount	$ 478,869		$ 478,875
For capital adequacy purposes ratio (as a percent)	0.040		0.040
To be well capitalized under prompt corrective action provisions amount	$ 598,586		$ 598,593
To be well capitalized under prompt corrective action provisions ratio (as a percent)	0.050		0.050
Dividends paid to Holdco	$ 27,500
Veritex Holdings, Inc.
Tier 1 capital (to average assets)
Dividends paid	$ 10,899	$ 10,837
Dividends paid (in dollars per share) | $ / shares	$ 0.20	$ 0.20