MCKINNEY, Texas--(BUSINESS WIRE)--Oct 21, 2024--
Independent Bank Group, Inc. (NASDAQ: IBTX) today announced net income of $20.4 million, or $0.49 per diluted share, for the quarter ended September 30, 2024, compared to $32.8 million, or $0.79 per diluted share for the quarter ended September 30, 2023 and net loss of $493,455 or ($11.93) per diluted share for the quarter ended June 30, 2024. Adjusted (non-GAAP) net income for the quarter ended September 30, 2024 was $20.6 million, or $0.50 per diluted share, compared to $32.6 million, or $0.79 per diluted share for the quarter ended September 30, 2023 and $24.9 million, or $0.60 per diluted share for the quarter ended June 30, 2024.
The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.38 per share of common stock. The dividend will be payable on November 14, 2024 to stockholders of record as of the close of business on October 31, 2024.
Highlights
“During the third quarter, we were pleased to see our net interest margin continue its expansion upward, slightly offset by the excess liquidity held during the quarter, as our loans continue to reprice. We also saw substantial enhancement of balance sheet strength in the third quarter as we replaced maturing subordinated debt which had lost capital treatment, resulting in a material increase to total regulatory capital. Also of note, we made the strategic decision to exit the mortgage warehouse line of business during the quarter, which should result in further increases to capital and liquidity once it has fully wound down,” said Independent Bank Group Chairman & CEO David R. Brooks. “As we enter the fourth quarter, we look forward to disciplined execution on all fronts while we work toward the completion of our pending merger with SouthState Corporation. We remain excited to join SouthState, a company whose culture, business model, and credit discipline matches ours.”
Third Quarter 2024 Balance Sheet Highlights
Loans
Asset Quality
Deposits, Borrowings and Liquidity
Capital
Third Quarter 2024 Operating Results
Net Interest Income
Noninterest Income
Noninterest Expense
Provision for Credit Losses
Income Taxes
Subsequent Events
The Company is required, under generally accepted accounting principles, to evaluate subsequent events through the filing of its consolidated financial statements for the quarter ended September 30, 2024 on Form 10-Q. As a result, the Company will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of September 30, 2024 and will adjust amounts preliminarily reported, if necessary.
About Independent Bank Group, Inc.
Independent Bank Group, Inc. is a bank holding company headquartered in McKinney, Texas. Through its wholly owned subsidiary, Independent Bank, doing business as Independent Financial, Independent Bank Group serves customers across Texas and Colorado with a wide range of relationship-driven banking services tailored to meet the needs of businesses, professionals and individuals. Independent Bank Group, Inc. operates in four market regions located in the Dallas/Fort Worth, Austin and Houston areas in Texas and the Colorado Front Range area, including Denver, Colorado Springs and Fort Collins.
Forward-Looking Statements
From time to time the Company’s comments and releases may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties and are made pursuant to the safe harbor provisions of Section 27A of the Securities Act, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and other related federal security laws. Forward-looking statements include information about the Company’s possible or assumed future results of operations, including its future revenues, income, expenses, provision for taxes, effective tax rate, earnings (loss) per share and cash flows, its future capital expenditures and dividends, its future financial condition and changes therein, including changes in the Company’s loan portfolio and allowance for credit losses, the Company’s future capital structure or changes therein, the plan and objectives of management for future operations, the Company’s future or proposed acquisitions, the future or expected effect of acquisitions on the Company’s operations, results of operations and financial condition, the Company’s future economic performance and the statements of the assumptions underlying any such statement. Such statements are typically, but not exclusively, identified by the use in the statements of words or phrases such as “aim,” “anticipate,” “estimate,” “expect,” “goal,” “guidance,” “intend,” “is anticipated,” “is estimated,” “is expected,” “is intended,” “objective,” “plan,” “projected,” “projection,” “will affect,” “will be,” “will continue,” “will decrease,” “will grow,” “will impact,” “will increase,” “will incur,” “will reduce,” “will remain,” “will result,” “would be,” variations of such words or phrases (including where the word “could,” “may” or “would” is used rather than the word “will” in a phrase) and similar words and phrases indicating that the statement addresses some future result, occurrence, plan or objective. The forward-looking statements that the Company makes are based on its current expectations and assumptions regarding its business, the economy, and other future conditions. Because forward-looking statements relate to future results and occurrences, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. The Company’s actual results may differ materially from those contemplated by the forward looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance. Many possible events or factors could affect the Company’s future financial results and performance and could cause those results or performance to differ materially from those expressed in the forward-looking statements. These possible events or factors include, but are not limited to: 1) the Company’s ability to sustain its current internal growth rate and total growth rate; 2) changes in geopolitical, business and economic events, occurrences and conditions, including changes in rates of inflation or deflation, nationally, regionally and in the Company’s target markets, particularly in Texas and Colorado; 3) worsening business and economic conditions nationally, regionally and in the Company’s target markets, particularly in Texas and Colorado, and the geographic areas in those states in which the Company operates; 4) the Company’s dependence on its management team and its ability to attract, motivate and retain qualified personnel; 5) the concentration of the Company’s business within its geographic areas of operation in Texas and Colorado; 6) changes in asset quality, including increases in default rates on loans and higher levels of nonperforming loans and loan charge-offs generally; 7) concentration of the loan portfolio of Independent Financial, before and after the completion of acquisitions of financial institutions, in commercial and residential real estate loans and changes in the prices, values and sales volumes of commercial and residential real estate; 8) the ability of Independent Financial to make loans with acceptable net interest margins and levels of risk of repayment and to otherwise invest in assets at acceptable yields and that present acceptable investment risks; 9) inaccuracy of the assumptions and estimates that the managements of the Company and the financial institutions that the Company acquires make in establishing reserves for credit losses and other estimates generally; 10) lack of liquidity, including as a result of a reduction in the amount of sources of liquidity the Company currently has; 11) material increases or decreases in the amount of insured and/or uninsured deposits held by Independent Financial or other financial institutions that the Company acquires and the cost of those deposits; 12) adverse developments in the banking industry related to soundness of other financial institutions, and the potential impact of such developments on customer confidence, liquidity, and regulatory responses, including regulatory oversight, examinations, and any potential related findings and actions; (13) the Company’s access to the debt and equity markets and the overall cost of funding its operations; 14) regulatory requirements to maintain minimum capital levels or maintenance of capital at levels sufficient to support the Company’s anticipated growth; 15) changes in market interest rates that affect the pricing of the loans and deposits of each of Independent Financial and the financial institutions that the Company acquires and that affect the net interest income, other future cash flows, or the market value of the assets of each of Independent Financial and the financial institutions that the Company acquires, including investment securities; 16) fluctuations in the market value and liquidity of the securities the Company holds for sale, including as a result of changes in market interest rates; 17) effects of competition from a wide variety of local, regional, national and other providers of financial, investment and insurance services; 18) the effects of infectious disease outbreaks and the significant impact and associated efforts to limit such spread has had or may have an economic conditions and the Company's business, employees, customers, asset quality, and financial performance; 19) changes in economic and market conditions, that affect the amount and value of the assets of Independent Financial and of financial institutions that the Company acquires; 20) the institution and outcome of, and costs associated with, litigation and other legal proceedings against one or more of the Company, Independent Financial and financial institutions that the Company acquired or will acquire or to which any of such entities is subject; 21) the occurrence of market conditions adversely affecting the financial industry generally; 22) the impact of recent and future legislative regulatory changes, including changes in banking, securities, and tax laws and regulations and their application by the Company’s regulators, and changes in federal government policies, as well as regulatory requirements applicable to, and resulting from regulatory supervision of, the Company and Independent Financial as a financial institution with total assets greater than $10 billion; 23) changes in accounting policies, practices, principles and guidelines, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the SEC and the Public Company Accounting Oversight Board, as the case may be; 24) governmental monetary and fiscal policies; 25) changes in the scope and cost of FDIC insurance and other coverage; 26) the effects of war or other conflicts, including, but not limited to, the conflicts between Russia and the Ukraine and Israel and Hamas, acts of terrorism (including cyberattacks) or other catastrophic events, including natural disasters such as storms, droughts, tornadoes, hurricanes and flooding, that may affect general economic conditions; 27) the Company’s actual cost savings resulting from previous or future acquisitions are less than expected, the Company is unable to realize those cost savings as soon as expected, or the Company incurs additional or unexpected costs; 28) the Company’s revenues after previous or future acquisitions are less than expected; 29) the liquidity of, and changes in the amounts and sources of liquidity available to the Company, before and after the acquisition of any financial institutions that the Company acquires; 30) deposit attrition, operating costs, customer loss and business disruption before and after the Company completed acquisitions, including, without limitation, difficulties in maintaining relationships with employees, may be greater than the Company expected; 31) the effects of the combination of the operations of financial institutions that the Company has acquired in the recent past or may acquire in the future with the Company’s operations and the operations of Independent Financial, the effects of the integration of such operations being unsuccessful, and the effects of such integration being more difficult, time consuming, or costly than expected or not yielding the cost savings the Company expects; 32) the impact of investments that the Company or Independent Financial may have made or may make and the changes in the value of those investments; 33) the quality of the assets of financial institutions and companies that the Company has acquired in the recent past or may acquire in the future being different than it determined or determine in its due diligence investigation in connection with the acquisition of such financial institutions and any inadequacy of credit loss reserves relating to, and exposure to unrecoverable losses on, loans acquired; 34) the Company’s ability to continue to identify acquisition targets and successfully acquire desirable financial institutions to sustain its growth, to expand its presence in the Company’s markets and to enter new markets; 35) changes in general business and economic conditions in the markets in which the Company currently operates and may operate in the future; 36) changes occur in business conditions and inflation generally; 37) an increase in the rate of personal or commercial customers’ bankruptcies generally; 38) technology-related changes are harder to make or are more expensive than expected; 39) attacks on the security of, and breaches of, the Company's and Independent Financial's digital information systems, the costs the Company or Independent Financial incur to provide security against such attacks and any costs and liability the Company or Independent Financial incurs in connection with any breach of those systems; 40) the potential impact of climate change and related government regulation on the Company and its customers; 41) the potential impact of technology and “FinTech” entities on the banking industry generally; 42) other economic, competitive, governmental, regulatory, technological and geopolitical factors affecting the Company's operations, pricing and services; 43) the possibility that the Company’s pending merger with SouthState Corporation (the “Merger”) does not close when expected or at all because required regulatory or other approvals or conditions to closing are not received or satisfied on a timely basis or at all (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the Merger); 44) the risk that the benefits from the Merger may not be fully realized or may take longer to realize than expected; 45) the risk of disruption to the parties’ businesses as a result of the announcement and pendency of the Merger; 46) the possibility that the Merger may be more expensive to complete than anticipated, including as a result of unexpected factors or events; and 47) the other factors that are described or referenced in Part I, Item 1A, of the Company’s Annual Report on Form 10-K filed with the SEC on February 20, 2024, Part I, Item 1A of our Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, the Company’s other Quarterly Reports on Form 10-Q, in each case under the caption “Risk Factors.” The Company urges you to consider all of these risks, uncertainties and other factors carefully in evaluating all such forward-looking statements made by the Company. As a result of these and other matters, including changes in facts, assumptions not being realized or other factors, the actual results relating to the subject matter of any forward-looking statement may differ materially from the anticipated results expressed or implied in that forward-looking statement. Any forward-looking statement made in this filing or made by the Company in any report, filing, document or information incorporated by reference in this filing, speaks only as of the date on which it is made. The Company undertakes no obligation to update any such forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. A forward-looking statement may include a statement of the assumptions or bases underlying the forward-looking statement. The Company believes that these assumptions or bases have been chosen in good faith and that they are reasonable. However, the Company cautions you that assumptions as to future occurrences or results almost always vary from actual future occurrences or results, and the differences between assumptions and actual occurrences and results can be material. Therefore, the Company cautions you not to place undue reliance on the forward-looking statements contained in this filing or incorporated by reference herein.
Non-GAAP Financial Measures
In addition to results presented in accordance with GAAP, this press release contains certain non-GAAP financial measures. These measures and ratios include “adjusted net income,” “adjusted earnings,” “tangible book value,” “tangible book value per common share,” “adjusted efficiency ratio,” “tangible common equity to tangible assets,” “adjusted net interest margin,” “return on tangible equity,” “adjusted return on average assets” and “adjusted return on average equity” and are supplemental measures that are not required by, or are not presented in accordance with, accounting principles generally accepted in the United States. We consider the use of select non-GAAP financial measures and ratios to be useful for financial operational decision making and useful in evaluating period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain expenditures or assets that we believe are not indicative of our primary business operating results. We believe that management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, analyzing and comparing past, present and future periods.
We believe that these measures provide useful information to management and investors that is supplementary to our financial condition, results of operations and cash flows computed in accordance with GAAP; however we acknowledge that our financial measures have a number of limitations relative to GAAP financial measures. Certain non-GAAP financial measures exclude items of income, expenditures, expenses, assets, or liabilities, including provisions for credit losses and the effect of goodwill, other intangible assets and income from accretion on acquired loans arising from purchase accounting adjustments, that we believe cause certain aspects of our results of operations or financial condition to be not indicative of our primary operating results. All of these items significantly impact our financial statements. Additionally, the items that we exclude in our adjustments are not necessarily consistent with the items that our peers may exclude from their results of operations and key financial measures and therefore may limit the comparability of similarly named financial measures and ratios. We compensate for these limitations by providing the equivalent GAAP measures whenever we present the non-GAAP financial measures and by including a reconciliation of the impact of the components adjusted for in the non-GAAP financial measure so that both measures and the individual components may be considered when analyzing our performance.
A reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statements tables.
Independent Bank Group, Inc. and Subsidiaries | ||||||||||||||||
Consolidated Financial Data | ||||||||||||||||
Three Months Ended September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023 and September 30, 2023 | ||||||||||||||||
(Dollars in thousands, except for share data) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
| As of and for the Quarter Ended | |||||||||||||||
| September 30, 2024 |
| June 30, 2024 |
| March 31, 2024 |
| December 31, 2023 |
| September 30, 2023 | |||||||
Selected Income Statement Data |
|
|
|
|
|
|
|
|
| |||||||
Interest income | $ | 241,716 |
| $ | 239,085 |
|
| $ | 235,205 |
|
| $ | 232,522 |
| $ | 222,744 |
Interest expense |
| 134,878 |
|
| 133,937 |
|
|
| 132,174 |
|
|
| 126,217 |
|
| 113,695 |
Net interest income |
| 106,838 |
|
| 105,148 |
|
|
| 103,031 |
|
|
| 106,305 |
|
| 109,049 |
Provision for credit losses |
| 4,700 |
|
| — |
|
|
| (3,200 | ) |
|
| 3,480 |
|
| 340 |
Net interest income after provision for credit losses |
| 102,138 |
|
| 105,148 |
|
|
| 106,231 |
|
|
| 102,825 |
|
| 108,709 |
Noninterest income |
| 13,461 |
|
| 13,433 |
|
|
| 12,870 |
|
|
| 10,614 |
|
| 13,646 |
Noninterest expense |
| 89,896 |
|
| 606,911 |
|
|
| 88,473 |
|
|
| 95,125 |
|
| 81,334 |
Income tax expense |
| 5,266 |
|
| 5,125 |
|
|
| 6,478 |
|
|
| 3,455 |
|
| 8,246 |
Net income (loss) |
| 20,437 |
|
| (493,455 | ) |
|
| 24,150 |
|
|
| 14,859 |
|
| 32,775 |
Adjusted net income (1) |
| 20,588 |
|
| 24,884 |
|
|
| 26,001 |
|
|
| 25,509 |
|
| 32,624 |
|
|
|
|
|
|
|
|
|
| |||||||
Per Share Data (Common Stock) |
|
|
|
|
|
|
|
|
| |||||||
Earnings (loss): |
|
|
|
|
|
|
|
|
| |||||||
Basic | $ | 0.49 |
| $ | (11.93 | ) |
| $ | 0.58 |
|
| $ | 0.36 |
| $ | 0.79 |
Diluted |
| 0.49 |
|
| (11.93 | ) |
|
| 0.58 |
|
|
| 0.36 |
|
| 0.79 |
Adjusted earnings: |
|
|
|
|
|
|
|
|
| |||||||
Basic (1) |
| 0.50 |
|
| 0.60 |
|
|
| 0.63 |
|
|
| 0.62 |
|
| 0.79 |
Diluted (1) |
| 0.50 |
|
| 0.60 |
|
|
| 0.63 |
|
|
| 0.62 |
|
| 0.79 |
Dividends |
| 0.38 |
|
| 0.38 |
|
|
| 0.38 |
|
|
| 0.38 |
|
| 0.38 |
Book value |
| 47.03 |
|
| 45.85 |
|
|
| 58.02 |
|
|
| 58.20 |
|
| 56.49 |
Tangible book value (1) |
| 34.54 |
|
| 33.27 |
|
|
| 32.85 |
|
|
| 32.90 |
|
| 31.11 |
Common shares outstanding |
| 41,439,096 |
|
| 41,376,169 |
|
|
| 41,377,745 |
|
|
| 41,281,919 |
|
| 41,284,003 |
Weighted average basic shares outstanding (2) |
| 41,432,637 |
|
| 41,377,917 |
|
|
| 41,322,744 |
|
|
| 41,283,041 |
|
| 41,284,964 |
Weighted average diluted shares outstanding (2) |
| 41,497,514 |
|
| 41,377,917 |
|
|
| 41,432,042 |
|
|
| 41,388,564 |
|
| 41,381,034 |
|
|
|
|
|
|
|
|
|
| |||||||
Selected Period End Balance Sheet Data |
|
|
|
|
|
|
|
|
| |||||||
Total assets | $ | 18,583,149 |
| $ | 18,359,162 |
|
| $ | 18,871,452 |
|
| $ | 19,035,102 |
| $ | 18,519,872 |
Cash and cash equivalents |
| 1,348,055 |
|
| 770,749 |
|
|
| 729,998 |
|
|
| 721,989 |
|
| 711,709 |
Securities available for sale |
| 1,510,572 |
|
| 1,494,470 |
|
|
| 1,543,247 |
|
|
| 1,593,751 |
|
| 1,545,904 |
Securities held to maturity |
| 203,863 |
|
| 204,319 |
|
|
| 204,776 |
|
|
| 205,232 |
|
| 205,689 |
Loans, held for sale |
| 12,806 |
|
| 12,012 |
|
|
| 21,299 |
|
|
| 16,420 |
|
| 18,068 |
Loans, held for investment (3) |
| 13,896,238 |
|
| 13,988,169 |
|
|
| 14,059,277 |
|
|
| 14,160,853 |
|
| 13,781,102 |
Mortgage warehouse purchase loans |
| 392,691 |
|
| 633,654 |
|
|
| 554,616 |
|
|
| 549,689 |
|
| 442,302 |
Allowance for credit losses on loans |
| 150,285 |
|
| 145,323 |
|
|
| 148,437 |
|
|
| 151,861 |
|
| 148,249 |
Goodwill and other intangible assets |
| 517,660 |
|
| 520,553 |
|
|
| 1,041,506 |
|
|
| 1,044,581 |
|
| 1,047,687 |
Other real estate owned |
| 8,685 |
|
| 8,685 |
|
|
| 8,685 |
|
|
| 9,490 |
|
| 22,505 |
Noninterest-bearing deposits |
| 3,447,184 |
|
| 3,378,493 |
|
|
| 3,300,773 |
|
|
| 3,530,704 |
|
| 3,703,784 |
Interest-bearing deposits |
| 12,547,884 |
|
| 12,464,183 |
|
|
| 12,370,942 |
|
|
| 12,192,331 |
|
| 11,637,185 |
Borrowings (other than junior subordinated debentures) |
| 454,762 |
|
| 427,129 |
|
|
| 496,975 |
|
|
| 621,821 |
|
| 546,666 |
Junior subordinated debentures |
| 54,766 |
|
| 54,717 |
|
|
| 54,667 |
|
|
| 54,617 |
|
| 54,568 |
Total stockholders' equity |
| 1,948,898 |
|
| 1,897,083 |
|
|
| 2,400,807 |
|
|
| 2,402,593 |
|
| 2,332,098 |
Independent Bank Group, Inc. and Subsidiaries | ||||||||||||||
Consolidated Financial Data | ||||||||||||||
Three Months Ended September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023 and September 30, 2023 | ||||||||||||||
(Dollars in thousands, except for share data) | ||||||||||||||
(Unaudited) | ||||||||||||||
| As of and for the Quarter Ended | |||||||||||||
| September 30, 2024 |
| June 30, 2024 |
| March 31, 2024 |
| December 31, 2023 |
| September 30, 2023 | |||||
Selected Performance Metrics |
|
|
|
|
|
|
|
|
| |||||
Return on average assets | 0.44 | % |
| (10.55 | )% |
| 0.51 | % |
| 0.31 | % |
| 0.70 | % |
Return on average equity | 4.24 |
|
| (87.53 | ) |
| 4.05 |
|
| 2.51 |
|
| 5.51 |
|
Return on tangible equity (4) | 5.81 |
|
| (146.65 | ) |
| 7.16 |
|
| 4.54 |
|
| 9.92 |
|
Adjusted return on average assets (1) | 0.45 |
|
| 0.53 |
|
| 0.55 |
|
| 0.54 |
|
| 0.70 |
|
Adjusted return on average equity (1) | 4.27 |
|
| 4.41 |
|
| 4.36 |
|
| 4.32 |
|
| 5.48 |
|
Adjusted return on tangible equity (1) (4) | 5.86 |
|
| 7.40 |
|
| 7.71 |
|
| 7.79 |
|
| 9.87 |
|
Net interest margin | 2.50 |
|
| 2.47 |
|
| 2.42 |
|
| 2.49 |
|
| 2.60 |
|
Efficiency ratio (5) | 72.32 |
|
| 509.32 |
|
| 73.68 |
|
| 78.70 |
|
| 63.75 |
|
Adjusted efficiency ratio (1) (5) | 72.17 |
|
| 71.09 |
|
| 71.63 |
|
| 67.96 |
|
| 63.84 |
|
|
|
|
|
|
|
|
|
|
| |||||
Credit Quality Ratios (3) (6) |
|
|
|
|
|
|
|
|
| |||||
Nonperforming assets to total assets | 0.37 | % |
| 0.35 | % |
| 0.34 | % |
| 0.32 | % |
| 0.33 | % |
Nonperforming loans to total loans held for investment | 0.43 |
|
| 0.40 |
|
| 0.40 |
|
| 0.37 |
|
| 0.28 |
|
Nonperforming assets to total loans held for investment and other real estate | 0.49 |
|
| 0.46 |
|
| 0.46 |
|
| 0.43 |
|
| 0.44 |
|
Allowance for credit losses on loans to nonperforming loans | 253.57 |
|
| 258.83 |
|
| 263.85 |
|
| 293.17 |
|
| 385.81 |
|
Allowance for credit losses to total loans held for investment | 1.08 |
|
| 1.04 |
|
| 1.06 |
|
| 1.07 |
|
| 1.08 |
|
Net charge-offs to average loans outstanding (annualized) | — |
|
| 0.10 |
|
| — |
|
| 0.01 |
|
| 0.01 |
|
|
|
|
|
|
|
|
|
|
| |||||
Capital Ratios |
|
|
|
|
|
|
|
|
| |||||
Estimated common equity Tier 1 capital to risk-weighted assets | 10.01 | % |
| 9.69 | % |
| 9.60 | % |
| 9.58 | % |
| 9.86 | % |
Estimated tier 1 capital to average assets | 9.08 |
|
| 8.76 |
|
| 8.91 |
|
| 8.94 |
|
| 9.09 |
|
Estimated tier 1 capital to risk-weighted assets | 10.36 |
|
| 10.03 |
|
| 9.94 |
|
| 9.93 |
|
| 10.21 |
|
Estimated total capital to risk-weighted assets | 13.26 |
|
| 11.75 |
|
| 11.68 |
|
| 11.57 |
|
| 11.89 |
|
Total stockholders' equity to total assets | 10.49 |
|
| 10.33 |
|
| 12.72 |
|
| 12.62 |
|
| 12.59 |
|
Tangible common equity to tangible assets (1) | 7.92 |
|
| 7.72 |
|
| 7.62 |
|
| 7.55 |
|
| 7.35 |
|
____________
(1) | Non-GAAP financial measure. See reconciliation. | |
(2) | Total number of shares includes participating shares (those with dividend rights). | |
(3) | Loans held for investment excludes mortgage warehouse purchase loans. | |
(4) | Non-GAAP financial measure. Excludes average balance of goodwill and net other intangible assets. | |
(5) | Efficiency ratio excludes amortization of other intangible assets. See reconciliation of Non-GAAP financial measures. | |
(6) | Credit metrics - Nonperforming assets, which consist of nonperforming loans, OREO and other repossessed assets, totaled $68,067, $64,946, $65,057, $61,404 and $61,044, respectively. Nonperforming loans, which consists of nonaccrual loans and loans delinquent 90 days and still accruing interest totaled $59,268, $56,147, $56,258, $51,800 and $38,425, respectively. |
Independent Bank Group, Inc. and Subsidiaries | ||||||||||||||||
Consolidated Statements of Income (Loss) | ||||||||||||||||
Three and Nine Months Ended September 30, 2024 and 2023 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
|
| Three Months Ended September 30, |
| Nine Months Ended September 30, | ||||||||||||
|
|
| 2024 |
|
|
| 2023 |
|
|
| 2024 |
|
|
| 2023 |
|
Interest income: |
|
|
|
|
|
|
|
| ||||||||
Interest and fees on loans |
| $ | 221,169 |
|
| $ | 202,725 |
|
| $ | 655,971 |
|
| $ | 580,631 |
|
Interest on taxable securities |
|
| 7,174 |
|
|
| 7,674 |
|
|
| 22,851 |
|
|
| 23,323 |
|
Interest on nontaxable securities |
|
| 2,482 |
|
|
| 2,558 |
|
|
| 7,524 |
|
|
| 7,747 |
|
Interest on interest-bearing deposits and other |
|
| 10,891 |
|
|
| 9,787 |
|
|
| 29,660 |
|
|
| 27,513 |
|
Total interest income |
|
| 241,716 |
|
|
| 222,744 |
|
|
| 716,006 |
|
|
| 639,214 |
|
Interest expense: |
|
|
|
|
|
|
|
| ||||||||
Interest on deposits |
|
| 127,075 |
|
|
| 102,600 |
|
|
| 374,833 |
|
|
| 243,005 |
|
Interest on FHLB advances |
|
| — |
|
|
| 6,054 |
|
|
| 4,605 |
|
|
| 29,903 |
|
Interest on other borrowings |
|
| 6,573 |
|
|
| 3,808 |
|
|
| 17,871 |
|
|
| 12,248 |
|
Interest on junior subordinated debentures |
|
| 1,230 |
|
|
| 1,233 |
|
|
| 3,680 |
|
|
| 3,480 |
|
Total interest expense |
|
| 134,878 |
|
|
| 113,695 |
|
|
| 400,989 |
|
|
| 288,636 |
|
Net interest income |
|
| 106,838 |
|
|
| 109,049 |
|
|
| 315,017 |
|
|
| 350,578 |
|
Provision for credit losses |
|
| 4,700 |
|
|
| 340 |
|
|
| 1,500 |
|
|
| 650 |
|
Net interest income after provision for credit losses |
|
| 102,138 |
|
|
| 108,709 |
|
|
| 313,517 |
|
|
| 349,928 |
|
Noninterest income: |
|
|
|
|
|
|
|
| ||||||||
Service charges on deposit accounts |
|
| 3,617 |
|
|
| 3,568 |
|
|
| 10,803 |
|
|
| 10,436 |
|
Investment management fees |
|
| 2,765 |
|
|
| 2,470 |
|
|
| 8,222 |
|
|
| 7,215 |
|
Mortgage banking revenue |
|
| 1,682 |
|
|
| 1,774 |
|
|
| 4,857 |
|
|
| 5,646 |
|
Mortgage warehouse purchase program fees |
|
| 617 |
|
|
| 555 |
|
|
| 1,812 |
|
|
| 1,414 |
|
(Loss) gain on sale of loans |
|
| — |
|
|
| (7 | ) |
|
| 74 |
|
|
| (14 | ) |
Gain on sale of other real estate |
|
| — |
|
|
| — |
|
|
| 13 |
|
|
| — |
|
(Loss) gain on sale and disposal of premises and equipment |
|
| (9 | ) |
|
| (56 | ) |
|
| (20 | ) |
|
| 345 |
|
Increase in cash surrender value of BOLI |
|
| 1,652 |
|
|
| 1,465 |
|
|
| 4,779 |
|
|
| 4,252 |
|
Other |
|
| 3,137 |
|
|
| 3,877 |
|
|
| 9,224 |
|
|
| 11,201 |
|
Total noninterest income |
|
| 13,461 |
|
|
| 13,646 |
|
|
| 39,764 |
|
|
| 40,495 |
|
Noninterest expense: |
|
|
|
|
|
|
|
| ||||||||
Salaries and employee benefits |
|
| 50,039 |
|
|
| 43,618 |
|
|
| 146,432 |
|
|
| 136,833 |
|
Occupancy |
|
| 12,326 |
|
|
| 12,408 |
|
|
| 36,951 |
|
|
| 35,607 |
|
Communications and technology |
|
| 7,937 |
|
|
| 6,916 |
|
|
| 23,298 |
|
|
| 21,202 |
|
FDIC assessment |
|
| 4,196 |
|
|
| 3,653 |
|
|
| 13,154 |
|
|
| 10,171 |
|
Advertising and public relations |
|
| 479 |
|
|
| 587 |
|
|
| 1,747 |
|
|
| 2,195 |
|
Other real estate owned expenses (income), net |
|
| 141 |
|
|
| (253 | ) |
|
| 169 |
|
|
| (482 | ) |
Impairment of other real estate |
|
| — |
|
|
| — |
|
|
| 345 |
|
|
| 2,200 |
|
Amortization of other intangible assets |
|
| 2,893 |
|
|
| 3,111 |
|
|
| 8,921 |
|
|
| 9,333 |
|
Litigation settlement |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 102,500 |
|
Professional fees |
|
| 1,296 |
|
|
| 1,262 |
|
|
| 4,406 |
|
|
| 6,112 |
|
Acquisition expense, including legal |
|
| 460 |
|
|
| — |
|
|
| 2,798 |
|
|
| — |
|
Goodwill impairment |
|
| — |
|
|
| — |
|
|
| 518,000 |
|
|
| — |
|
Other |
|
| 10,129 |
|
|
| 10,032 |
|
|
| 29,059 |
|
|
| 30,748 |
|
Total noninterest expense |
|
| 89,896 |
|
|
| 81,334 |
|
|
| 785,280 |
|
|
| 356,419 |
|
Income (loss) before taxes |
|
| 25,703 |
|
|
| 41,021 |
|
|
| (431,999 | ) |
|
| 34,004 |
|
Income tax expense |
|
| 5,266 |
|
|
| 8,246 |
|
|
| 16,869 |
|
|
| 5,662 |
|
Net income (loss) |
| $ | 20,437 |
|
| $ | 32,775 |
|
| $ | (448,868 | ) |
| $ | 28,342 |
|
Independent Bank Group, Inc. and Subsidiaries | |||||||
Consolidated Balance Sheets | |||||||
As of September 30, 2024 and December 31, 2023 | |||||||
(Dollars in thousands) | |||||||
(Unaudited) | |||||||
| September 30, |
| December 31, | ||||
Assets |
| 2024 |
|
|
| 2023 |
|
Cash and due from banks | $ | 103,157 |
|
| $ | 98,396 |
|
Interest-bearing deposits in other banks |
| 1,244,898 |
|
|
| 623,593 |
|
Cash and cash equivalents |
| 1,348,055 |
|
|
| 721,989 |
|
Certificates of deposit held in other banks |
| — |
|
|
| 248 |
|
Securities available for sale, at fair value |
| 1,510,572 |
|
|
| 1,593,751 |
|
Securities held to maturity, net of allowance for credit losses of $0 and $0, respectively, fair value of $172,306 and $170,997, respectively |
| 203,863 |
|
|
| 205,232 |
|
Loans held for sale (includes $10,037 and $12,016 carried at fair value, respectively) |
| 12,806 |
|
|
| 16,420 |
|
Loans, net of allowance for credit losses of $150,285 and $151,861, respectively |
| 14,138,644 |
|
|
| 14,558,681 |
|
Premises and equipment, net |
| 350,252 |
|
|
| 355,833 |
|
Other real estate owned |
| 8,685 |
|
|
| 9,490 |
|
Federal Home Loan Bank (FHLB) of Dallas stock and other restricted stock |
| 14,489 |
|
|
| 34,915 |
|
Bank-owned life insurance (BOLI) |
| 250,276 |
|
|
| 245,497 |
|
Deferred tax asset |
| 67,733 |
|
|
| 92,665 |
|
Goodwill |
| 476,021 |
|
|
| 994,021 |
|
Other intangible assets, net |
| 41,639 |
|
|
| 50,560 |
|
Other assets |
| 160,114 |
|
|
| 155,800 | |
Total assets | $ | 18,583,149 |
|
| $ | 19,035,102 |
|
|
|
|
| ||||
Liabilities and Stockholders’ Equity |
|
|
| ||||
Deposits: |
|
|
| ||||
Noninterest-bearing | $ | 3,447,184 |
|
| $ | 3,530,704 |
|
Interest-bearing |
| 12,547,884 |
|
|
| 12,192,331 |
|
Total deposits |
| 15,995,068 |
|
|
| 15,723,035 |
|
FHLB advances |
| — |
|
|
| 350,000 |
|
Other borrowings |
| 454,762 |
|
|
| 271,821 |
|
Junior subordinated debentures |
| 54,766 |
|
|
| 54,617 |
|
Other liabilities |
| 129,655 |
|
|
| 233,036 |
|
Total liabilities |
| 16,634,251 |
|
|
| 16,632,509 |
|
Commitments and contingencies |
| — |
|
|
| — |
|
Stockholders’ equity: |
|
|
| ||||
Preferred stock (0 and 0 shares outstanding, respectively) |
| — |
|
|
| — |
|
Common stock (41,439,096 and 41,281,919 shares outstanding, respectively) |
| 414 |
|
|
| 413 |
|
Additional paid-in capital |
| 1,974,143 |
|
|
| 1,966,686 |
|
Retained earnings |
| 117,652 |
|
|
| 616,724 |
|
Accumulated other comprehensive loss |
| (143,311 | ) |
|
| (181,230 | ) |
Total stockholders’ equity |
| 1,948,898 |
|
|
| 2,402,593 | |
Total liabilities and stockholders’ equity | $ | 18,583,149 |
|
| $ | 19,035,102 |
|
Independent Bank Group, Inc. and Subsidiaries Consolidated Average Balance Sheet Amounts, Interest Earned and Yield Analysis | ||||||||||||||||||
Three Months Ended September 30, 2024 and 2023 | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
The analysis below shows average interest-earning assets and interest-bearing liabilities together with the average yield on the interest-earning assets and the average cost of the interest-bearing liabilities for the periods presented. | ||||||||||||||||||
|
| Three Months Ended September 30, | ||||||||||||||||
|
| 2024 |
| 2023 | ||||||||||||||
|
| Average Outstanding Balance |
| Interest |
| Yield/ Rate (4) |
| Average Outstanding Balance |
| Interest |
| Yield/ Rate (4) | ||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Loans (1) |
| $ | 14,487,650 |
| $ | 221,169 |
| 6.07 | % |
| $ | 14,118,264 |
| $ | 202,725 |
| 5.70 | % |
Taxable securities |
|
| 1,326,655 |
|
| 7,174 |
| 2.15 |
|
|
| 1,411,578 |
|
| 7,674 |
| 2.16 |
|
Nontaxable securities |
|
| 387,537 |
|
| 2,482 |
| 2.55 |
|
|
| 410,391 |
|
| 2,558 |
| 2.47 |
|
Interest-bearing deposits and other |
|
| 804,594 |
|
| 10,891 |
| 5.38 |
|
|
| 716,271 |
|
| 9,787 |
| 5.42 |
|
Total interest-earning assets |
|
| 17,006,436 |
|
| 241,716 |
| 5.65 |
|
|
| 16,656,504 |
|
| 222,744 |
| 5.31 |
|
Noninterest-earning assets |
|
| 1,292,346 |
|
|
|
|
|
| 1,864,096 |
|
|
|
| ||||
Total assets |
| $ | 18,298,782 |
|
|
|
|
| $ | 18,520,600 |
|
|
|
| ||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Checking accounts |
| $ | 5,490,570 |
| $ | 51,584 |
| 3.74 | % |
| $ | 5,596,274 |
| $ | 47,657 |
| 3.38 | % |
Savings accounts |
|
| 497,721 |
|
| 304 |
| 0.24 |
|
|
| 590,577 |
|
| 90 |
| 0.06 |
|
Money market accounts |
|
| 2,181,715 |
|
| 22,893 |
| 4.17 |
|
|
| 1,565,181 |
|
| 15,200 |
| 3.85 |
|
Certificates of deposit |
|
| 4,216,985 |
|
| 52,294 |
| 4.93 |
|
|
| 3,566,496 |
|
| 39,653 |
| 4.41 |
|
Total deposits |
|
| 12,386,991 |
|
| 127,075 |
| 4.08 |
|
|
| 11,318,528 |
|
| 102,600 |
| 3.60 |
|
FHLB advances |
|
| — |
|
| — |
| — |
|
|
| 463,967 |
|
| 6,054 |
| 5.18 |
|
Other borrowings - short-term |
|
| 166,005 |
|
| 2,106 |
| 5.05 |
|
|
| 41,087 |
|
| 738 |
| 7.13 |
|
Other borrowings - long-term |
|
| 279,725 |
|
| 4,467 |
| 6.35 |
|
|
| 237,862 |
|
| 3,070 |
| 5.12 |
|
Junior subordinated debentures |
|
| 54,749 |
|
| 1,230 |
| 8.94 |
|
|
| 54,550 |
|
| 1,233 |
| 8.97 |
|
Total interest-bearing liabilities |
|
| 12,887,470 |
|
| 134,878 |
| 4.16 |
|
|
| 12,115,994 |
|
| 113,695 |
| 3.72 |
|
Noninterest-bearing demand accounts |
|
| 3,361,194 |
|
|
|
|
|
| 3,798,091 |
|
|
|
| ||||
Noninterest-bearing liabilities |
|
| 132,968 |
|
|
|
|
|
| 246,340 |
|
|
|
| ||||
Stockholders’ equity |
|
| 1,917,150 |
|
|
|
|
|
| 2,360,175 |
|
|
|
| ||||
Total liabilities and equity |
| $ | 18,298,782 |
|
|
|
|
| $ | 18,520,600 |
|
|
|
| ||||
Net interest income |
|
|
| $ | 106,838 |
|
|
|
|
| $ | 109,049 |
|
| ||||
Interest rate spread |
|
|
|
|
| 1.49 | % |
|
|
|
|
| 1.59 | % | ||||
Net interest margin (2) |
|
|
|
|
| 2.50 |
|
|
|
|
|
| 2.60 |
| ||||
Net interest income and margin (tax equivalent basis) (3) |
|
|
| $ | 107,971 |
| 2.53 |
|
|
|
| $ | 110,077 |
| 2.62 |
| ||
Average interest-earning assets to interest-bearing liabilities |
|
|
|
|
| 131.96 |
|
|
|
|
|
| 137.48 |
|
____________
(1) | Average loan balances include nonaccrual loans. |
(2) | Net interest margins for the periods presented represent: (i) the difference between interest income on interest-earning assets and the interest expense on interest-bearing liabilities, divided by (ii) average interest-earning assets for the period. |
(3) | A tax-equivalent adjustment has been computed using a federal income tax rate of 21%. |
(4) | Yield and rates for the three month periods are annualized. |
Independent Bank Group, Inc. and Subsidiaries | ||||||||||||||||||
Consolidated Average Balance Sheet Amounts, Interest Earned and Yield Analysis | ||||||||||||||||||
Nine Months Ended September 30, 2024 and 2023 | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
The analysis below shows average interest-earning assets and interest-bearing liabilities together with the average yield on the interest-earning assets and the average cost of the interest-bearing liabilities for the periods presented. | ||||||||||||||||||
|
| Nine Months Ended September 30, | ||||||||||||||||
|
| 2024 |
| 2023 | ||||||||||||||
|
| Average Outstanding Balance |
| Interest |
| Yield/Rate (4) |
| Average Outstanding Balance |
| Interest |
| Yield/Rate (4) | ||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Loans (1) |
| $ | 14,578,678 |
| $ | 655,971 |
| 6.01 | % |
| $ | 14,026,604 |
| $ | 580,631 |
| 5.53 | % |
Taxable securities |
|
| 1,367,468 |
|
| 22,851 |
| 2.23 |
|
|
| 1,444,280 |
|
| 23,323 |
| 2.16 |
|
Nontaxable securities |
|
| 392,657 |
|
| 7,524 |
| 2.56 |
|
|
| 417,459 |
|
| 7,747 |
| 2.48 |
|
Interest-bearing deposits and other |
|
| 730,098 |
|
| 29,660 |
| 5.43 |
|
|
| 724,787 |
|
| 27,513 |
| 5.08 |
|
Total interest-earning assets |
|
| 17,068,901 |
|
| 716,006 |
| 5.60 |
|
|
| 16,613,130 |
|
| 639,214 |
| 5.14 |
|
Noninterest-earning assets |
|
| 1,609,929 |
|
|
|
|
|
| 1,855,135 |
|
|
|
| ||||
Total assets |
| $ | 18,678,830 |
|
|
|
|
| $ | 18,468,265 |
|
|
|
| ||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Checking accounts |
| $ | 5,494,894 |
| $ | 151,144 |
| 3.67 | % |
| $ | 5,836,196 |
| $ | 128,493 |
| 2.94 | % |
Savings accounts |
|
| 515,145 |
|
| 693 |
| 0.18 |
|
|
| 652,067 |
|
| 263 |
| 0.05 |
|
Money market accounts |
|
| 2,024,517 |
|
| 63,418 |
| 4.18 |
|
|
| 1,587,340 |
|
| 38,646 |
| 3.26 |
|
Certificates of deposit |
|
| 4,285,623 |
|
| 159,578 |
| 4.97 |
|
|
| 2,604,697 |
|
| 75,603 |
| 3.88 |
|
Total deposits |
|
| 12,320,179 |
|
| 374,833 |
| 4.06 |
|
|
| 10,680,300 |
|
| 243,005 |
| 3.04 |
|
FHLB advances |
|
| 112,044 |
|
| 4,605 |
| 5.49 |
|
|
| 817,436 |
|
| 29,903 |
| 4.89 |
|
Other borrowings - short-term |
|
| 184,049 |
|
| 7,264 |
| 5.27 |
|
|
| 40,196 |
|
| 2,082 |
| 6.93 |
|
Other borrowings - long-term |
|
| 252,175 |
|
| 10,607 |
| 5.62 |
|
|
| 247,258 |
|
| 10,166 |
| 5.50 |
|
Junior subordinated debentures |
|
| 54,699 |
|
| 3,680 |
| 8.99 |
|
|
| 54,501 |
|
| 3,480 |
| 8.54 |
|
Total interest-bearing liabilities |
|
| 12,923,146 |
|
| 400,989 |
| 4.14 |
|
|
| 11,839,691 |
|
| 288,636 |
| 3.26 |
|
Noninterest-bearing demand accounts |
|
| 3,354,693 |
|
|
|
|
|
| 4,058,686 |
|
|
|
| ||||
Noninterest-bearing liabilities |
|
| 207,665 |
|
|
|
|
|
| 203,021 |
|
|
|
| ||||
Stockholders’ equity |
|
| 2,193,326 |
|
|
|
|
|
| 2,366,867 |
|
|
|
| ||||
Total liabilities and equity |
| $ | 18,678,830 |
|
|
|
|
| $ | 18,468,265 |
|
|
|
| ||||
Net interest income |
|
|
| $ | 315,017 |
|
|
|
|
| $ | 350,578 |
|
| ||||
Interest rate spread |
|
|
|
|
| 1.46 | % |
|
|
|
|
| 1.88 | % | ||||
Net interest margin (2) |
|
|
|
|
| 2.47 |
|
|
|
|
|
| 2.82 |
| ||||
Net interest income and margin (tax equivalent basis) (3) |
|
|
| $ | 318,302 |
| 2.49 |
|
|
|
| $ | 353,680 |
| 2.85 |
| ||
Average interest-earning assets to interest-bearing liabilities |
|
|
|
|
| 132.08 |
|
|
|
|
|
| 140.32 |
|
____________
(1) | Average loan balances include nonaccrual loans. | |
(2) | Net interest margins for the periods presented represent: (i) the difference between interest income on interest-earning assets and the interest expense on interest-bearing liabilities, divided by (ii) average interest-earning assets for the period. | |
(3) | A tax-equivalent adjustment has been computed using a federal income tax rate of 21%. | |
(4) | Yield and rates for the nine month periods are annualized. |
Independent Bank Group, Inc. and Subsidiaries | ||||||||||||||
Loan Portfolio Composition | ||||||||||||||
As of September 30, 2024 and December 31, 2023 | ||||||||||||||
(Dollars in thousands) | ||||||||||||||
(Unaudited) | ||||||||||||||
Total Loans By Class |
|
|
|
| ||||||||||
|
| September 30, 2024 |
| December 31, 2023 | ||||||||||
|
| Amount |
| % of Total |
| Amount |
| % of Total | ||||||
Commercial |
| $ | 2,123,443 |
|
| 14.8 | % |
| $ | 2,266,851 |
|
| 15.4 | % |
Mortgage warehouse purchase loans |
|
| 392,691 |
|
| 2.7 |
|
|
| 549,689 |
|
| 3.7 |
|
Real estate: |
|
|
|
|
|
|
|
| ||||||
Commercial real estate |
|
| 8,311,344 |
|
| 58.2 |
|
|
| 8,289,124 |
|
| 56.3 |
|
Commercial construction, land and land development |
|
| 1,140,863 |
|
| 8.0 |
|
|
| 1,231,484 |
|
| 8.4 |
|
Residential real estate (1) |
|
| 1,715,099 |
|
| 12.0 |
|
|
| 1,686,206 |
|
| 11.5 |
|
Single-family interim construction |
|
| 430,283 |
|
| 3.0 |
|
|
| 517,928 |
|
| 3.5 |
|
Agricultural |
|
| 113,851 |
|
| 0.8 |
|
|
| 109,451 |
|
| 0.7 |
|
Consumer |
|
| 74,161 |
|
| 0.5 |
|
|
| 76,229 |
|
| 0.5 |
|
Total loans |
|
| 14,301,735 |
|
| 100.0 | % |
|
| 14,726,962 |
|
| 100.0 | % |
Allowance for credit losses |
|
| (150,285 | ) |
|
|
|
| (151,861 | ) |
|
| ||
Total loans, net |
| $ | 14,151,450 |
|
|
|
| $ | 14,575,101 |
|
|
|
____________
(1) | Includes loans held for sale of $12,806 and $16,420 at September 30, 2024 and December 31, 2023, respectively. |
Independent Bank Group, Inc. and Subsidiaries | ||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||||||
Three Months Ended September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023 and September 30, 2023 | ||||||||||||||||||||
(Dollars in thousands, except for share data) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
|
| For the Three Months Ended | ||||||||||||||||||
|
| September 30, 2024 |
| June 30, 2024 |
| March 31, 2024 |
| December 31, 2023 |
| September 30, 2023 | ||||||||||
ADJUSTED NET INCOME |
|
|
|
|
|
|
|
|
|
| ||||||||||
Net Interest Income - Reported | (a) | $ | 106,838 |
|
| $ | 105,148 |
|
| $ | 103,031 |
|
| $ | 106,305 |
|
| $ | 109,049 |
|
Provision for Credit Losses - Reported | (b) |
| 4,700 |
|
|
| — |
|
|
| (3,200 | ) |
|
| 3,480 |
|
|
| 340 |
|
Noninterest Income - Reported | (c) |
| 13,461 |
|
|
| 13,433 |
|
|
| 12,870 |
|
|
| 10,614 |
|
|
| 13,646 |
|
(Gain) loss on sale of loans |
|
| — |
|
|
| — |
|
|
| (74 | ) |
|
| — |
|
|
| 7 |
|
(Gain) loss on sale of other real estate |
|
| — |
|
|
| — |
|
|
| (13 | ) |
|
| 1,797 |
|
|
| — |
|
Loss on sale and disposal of premises and equipment |
|
| 9 |
|
|
| 11 |
|
|
| — |
|
|
| 22 |
|
|
| 56 |
|
Recoveries on loans charged off prior to acquisition |
|
| (6 | ) |
|
| (57 | ) |
|
| (5 | ) |
|
| (64 | ) |
|
| (279 | ) |
Adjusted Noninterest Income | (d) |
| 13,464 |
|
|
| 13,387 |
|
|
| 12,778 |
|
|
| 12,369 |
|
|
| 13,430 |
|
Noninterest Expense - Reported | (e) |
| 89,896 |
|
|
| 606,911 |
|
|
| 88,473 |
|
|
| 95,125 |
|
|
| 81,334 |
|
OREO impairment |
|
| — |
|
|
| — |
|
|
| (345 | ) |
|
| (3,015 | ) |
|
| — |
|
FDIC special assessment |
|
| 273 |
|
|
| 645 |
|
|
| (2,095 | ) |
|
| (8,329 | ) |
|
| — |
|
Goodwill and asset impairment |
|
| — |
|
|
| (518,000 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
Acquisition expense (1) |
|
| (460 | ) |
|
| (2,338 | ) |
|
| — |
|
|
| (27 | ) |
|
| (27 | ) |
Adjusted Noninterest Expense | (f) |
| 89,709 |
|
|
| 87,218 |
|
|
| 86,033 |
|
|
| 83,754 |
|
|
| 81,307 |
|
Income Tax Expense - Reported | (g) |
| 5,266 |
|
|
| 5,125 |
|
|
| 6,478 |
|
|
| 3,455 |
|
|
| 8,246 |
|
Net Income (Loss) - Reported | (a) - (b) + (c) - (e) - (g) = (h) |
| 20,437 |
|
|
| (493,455 | ) |
|
| 24,150 |
|
|
| 14,859 |
|
|
| 32,775 |
|
Adjusted Net Income (2) | (a) - (b) + (d) - (f) = (i) | $ | 20,588 |
|
| $ | 24,884 |
|
| $ | 26,001 |
|
| $ | 25,509 |
|
| $ | 32,624 |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
ADJUSTED PROFITABILITY (3) |
|
|
|
|
|
|
|
|
|
| ||||||||||
Total Average Assets | (j) | $ | 18,298,782 |
|
| $ | 18,803,877 |
|
| $ | 18,938,008 |
|
| $ | 18,815,342 |
|
| $ | 18,520,600 |
|
Total Average Stockholders' Equity | (k) |
| 1,917,150 |
|
|
| 2,267,289 |
|
|
| 2,398,573 |
|
|
| 2,344,652 |
|
|
| 2,360,175 |
|
Total Average Tangible Stockholders' Equity (4) | (l) |
| 1,398,494 |
|
|
| 1,353,313 |
|
|
| 1,356,042 |
|
|
| 1,299,026 |
|
|
| 1,311,417 |
|
Reported Return on Average Assets | (h) / (j) |
| 0.44 | % |
|
| (10.55 | )% |
|
| 0.51 | % |
|
| 0.31 | % |
|
| 0.70 | % |
Reported Return on Average Equity | (h) / (k) |
| 4.24 |
|
|
| (87.53 | ) |
|
| 4.05 |
|
|
| 2.51 |
|
|
| 5.51 |
|
Reported Return on Average Tangible Equity | (h) / (l) |
| 5.81 |
|
|
| (146.65 | ) |
|
| 7.16 |
|
|
| 4.54 |
|
|
| 9.92 |
|
Adjusted Return on Average Assets (5) | (i) / (j) |
| 0.45 |
|
|
| 0.53 |
|
|
| 0.55 |
|
|
| 0.54 |
|
|
| 0.70 |
|
Adjusted Return on Average Equity (5) | (i) / (k) |
| 4.27 |
|
|
| 4.41 |
|
|
| 4.36 |
|
|
| 4.32 |
|
|
| 5.48 |
|
Adjusted Return on Tangible Equity (5) | (i) / (l) |
| 5.86 |
|
|
| 7.40 |
|
|
| 7.71 |
|
|
| 7.79 |
|
|
| 9.87 |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
EFFICIENCY RATIO |
|
|
|
|
|
|
|
|
|
| ||||||||||
Amortization of other intangible assets | (m) | $ | 2,893 |
|
| $ | 2,953 |
|
| $ | 3,075 |
|
| $ | 3,106 |
|
| $ | 3,111 |
|
Reported Efficiency Ratio | (e - m) / (a + c) |
| 72.32 | % |
|
| 509.32 | % |
|
| 73.68 | % |
|
| 78.70 | % |
|
| 63.75 | % |
Adjusted Efficiency Ratio | (f - m) / (a + d) |
| 72.17 |
|
|
| 71.09 |
|
|
| 71.63 |
|
|
| 67.96 |
|
|
| 63.84 |
|
____________
(1) | Prior to 2024, acquisition expenses include compensation related expenses for equity awards granted at acquisition. Second and third quarter 2024 includes merger-related expenses related to the announced merger with SouthState Corporation. | |
(2) | Assumes an adjusted effective tax rate of 20.5%, 20.5%, 21.2%, 18.9%, and 20.1%, respectively. Second quarter 2024 normalized rate excludes the effect of nondeductible acquisition expenses and goodwill impairment charges. | |
(3) | Quarterly metrics are annualized. | |
(4) | Excludes average balance of goodwill and net other intangible assets. | |
(5) | Calculated using adjusted net income. |
Independent Bank Group, Inc. and Subsidiaries Reconciliation of Non-GAAP Financial Measures | |||||||||||||||||||
As of September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023 and September 30, 2023 | |||||||||||||||||||
(Dollars in thousands, except per share information) | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Tangible Book Value & Tangible Common Equity To Tangible Assets Ratio | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||
| As of the Quarter Ended | ||||||||||||||||||
| September 30, 2024 |
| June 30, 2024 |
| March 31, 2024 |
| December 31, 2023 |
| September 30, 2023 | ||||||||||
Tangible Common Equity |
|
|
|
|
|
|
|
|
| ||||||||||
Total common stockholders' equity | $ | 1,948,898 |
|
| $ | 1,897,083 |
|
| $ | 2,400,807 |
|
| $ | 2,402,593 |
|
| $ | 2,332,098 |
|
Adjustments: |
|
|
|
|
|
|
|
|
| ||||||||||
Goodwill |
| (476,021 | ) |
|
| (476,021 | ) |
|
| (994,021 | ) |
|
| (994,021 | ) |
|
| (994,021 | ) |
Other intangible assets, net |
| (41,639 | ) |
|
| (44,532 | ) |
|
| (47,485 | ) |
|
| (50,560 | ) |
|
| (53,666 | ) |
Tangible common equity | $ | 1,431,238 |
|
| $ | 1,376,530 |
|
| $ | 1,359,301 |
|
| $ | 1,358,012 |
|
| $ | 1,284,411 |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Tangible Assets |
|
|
|
|
|
|
|
|
| ||||||||||
Total assets | $ | 18,583,149 |
|
| $ | 18,359,162 |
|
| $ | 18,871,452 |
|
| $ | 19,035,102 |
|
| $ | 18,519,872 |
|
Adjustments: |
|
|
|
|
|
|
|
|
| ||||||||||
Goodwill |
| (476,021 | ) |
|
| (476,021 | ) |
|
| (994,021 | ) |
|
| (994,021 | ) |
|
| (994,021 | ) |
Other intangible assets, net |
| (41,639 | ) |
|
| (44,532 | ) |
|
| (47,485 | ) |
|
| (50,560 | ) |
|
| (53,666 | ) |
Tangible assets | $ | 18,065,489 |
|
| $ | 17,838,609 |
|
| $ | 17,829,946 |
|
| $ | 17,990,521 |
|
| $ | 17,472,185 |
|
Common shares outstanding |
| 41,439,096 |
|
|
| 41,376,169 |
|
|
| 41,377,745 |
|
|
| 41,281,919 |
|
|
| 41,284,003 |
|
Tangible common equity to tangible assets |
| 7.92 | % |
|
| 7.72 | % |
|
| 7.62 | % |
|
| 7.55 | % |
|
| 7.35 | % |
Book value per common share | $ | 47.03 |
|
| $ | 45.85 |
|
| $ | 58.02 |
|
| $ | 58.20 |
|
| $ | 56.49 |
|
Tangible book value per common share |
| 34.54 |
|
|
| 33.27 |
|
|
| 32.85 |
|
|
| 32.90 |
|
|
| 31.11 |
|
View source version on businesswire.com:https://www.businesswire.com/news/home/20241021709157/en/
CONTACT: Analysts/Investors:
Paul Langdale
Executive Vice President, Chief Financial Officer
(972) 562-9004
Paul.Langdale@ifinancial.comMedia:
Wendi Costlow
Executive Vice President, Chief Marketing Officer
(972) 562-9004
Wendi.Costlow@ifinancial.com
KEYWORD: TEXAS UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: BANKING PROFESSIONAL SERVICES FINANCE
SOURCE: Independent Bank Group, Inc.
Copyright Business Wire 2024.
PUB: 10/21/2024 05:00 PM/DISC: 10/21/2024 05:00 PM
http://www.businesswire.com/news/home/20241021709157/en