Independent Bank Group, Inc. Reports Fourth Quarter Financial Results, Declares Quarterly Dividend, and Announces Share Repurchase Plan
Independent Bank Group, Inc. (NASDAQ: IBTX) reported a net income of $40.8 million, or $0.99 per diluted share, for Q4 2022, down from $54.2 million and $1.26 per diluted share in Q4 2021. The for the full year 2022, net income was $196.3 million, or $4.70 per diluted share, compared to $224.8 million in 2021. The Board declared a quarterly cash dividend of $0.38 per share and authorized a $125 million stock repurchase program. Key highlights include 9.6% annualized loan growth in Q4 and improved credit metrics, with nonperforming assets at 0.35% of total assets.
- Net income for Q4 2022 was $40.8 million; adjusted net income was $49.4 million.
- Annualized organic loan growth of 9.6% for Q4 2022.
- Improved credit quality with nonperforming assets at 0.35% of total assets.
- Net income decreased from $54.2 million in Q4 2021 and $52.4 million in Q3 2022.
- Total noninterest income declined by $3.9 million year-over-year.
- Total noninterest expense increased by $18.9 million compared to Q4 2021.
For the year ended
The Company also announced that its Board of Directors declared a quarterly cash dividend of
Highlights
-
Net income of
$40.8 million $0.99 $49.4 million $1.20 -
Organic loan growth of
9.6% annualized for the quarter (excluding warehouse and PPP) -
Improved credit metrics with nonperforming assets of
0.35% of total assets -
Net charge-offs for the quarter of
0.02% , annualized -
Increase in loan yield, net of acquired loan accretion and PPP income, to
5.01% , compared to4.62% in the linked quarter
"Our full-year 2022 results illustrate the ability of our business model to deliver healthy loan growth, sustainable earnings, and resilient credit quality throughout the economic cycle," said
Fourth Quarter 2022 Operating Results
Net Interest Income
-
Net interest income was
$141.8 million $132.7 million $147.3 million $1.1 million $2.1 million $5.7 million $58 thousand $4.0 million $343 thousand $101 thousand December 31, 2022 . -
The average balance of total interest-earning assets decreased
$1.4 billion $16.1 billion December 31, 2022 compared to$17.5 billion December 31, 2021 and increased$68.9 million $16.0 billion September 30, 2022 . The decrease from the prior year is primarily due to lower average interest bearing cash balances, which decreased approximately$2.9 billion $1.4 billion -
The yield on interest-earning assets was
4.67% for fourth quarter 2022 compared to3.30% for fourth quarter 2021 and4.30% for third quarter 2022. The increase in asset yield compared to the linked quarter and prior year is primarily a result of increases in the Fed Funds rate, while the prior year increase is also a result of the shift in earning assets from lower yielding interest-bearing deposit balances to higher yielding loans due to the strong loan growth for the year over year period. The average loan yield, net of acquired loan accretion and PPP income was5.01% for the current quarter, compared to4.07% for prior year quarter and4.62% for the linked quarter. -
The cost of interest-bearing liabilities, including borrowings, was
1.81% for fourth quarter 2022 compared to0.46% for fourth quarter 2021 and1.02% for third quarter 2022. The increase from the linked quarter and prior year is reflective of higher rates on deposit products and short-term borrowings as a result of Fed Funds rate increases. -
The net interest margin was
3.49% for fourth quarter 2022 compared to3.00% for fourth quarter 2021 and3.64% for third quarter 2022. The net interest margin excluding acquired loan accretion was3.46% for fourth quarter 2022 compared to2.87% fourth quarter 2021 and3.59% for third quarter 2022. The increase in net interest margin from the prior year was primarily due to higher earnings on loans due to organic growth for the year over year period, in addition to higher yields resulting from Fed rate increases, offset by increased funding costs on deposit products. The prior year change also reflects a shift in the asset mix to higher yielding assets due to loan growth. The decrease in the net interest margin from the linked quarter was primarily due to the increased funding costs.
Noninterest Income
-
Total noninterest income decreased
$3.9 million $2.3 million -
The change from the prior year primarily reflects decreases of
$3.2 million $1.1 million $936 thousand $205 thousand $723 thousand -
Both mortgage banking revenue and mortgage warehouse purchase fees were lower in fourth quarter 2022 compared to prior year and linked quarter due to decreased demand and lower volumes, as well as narrower margins resulting from rate increases over the year. Offsetting the decrease in mortgage banking revenue was a fair value gain on derivative hedging instruments of
$291 thousand $378 thousand $61 thousand - The decrease in other noninterest income compared to the linked quarter was primarily due to the termination of a correspondent relationship during the quarter.
Noninterest Expense
-
Total noninterest expense increased
$18.9 million $7.0 million $10.4 million -
The increase in noninterest expense in fourth quarter 2022 compared to the prior year is due primarily to increases of
$11.0 million $1.4 million $902 thousand $1.0 million $3.7 million -
The increase in noninterest expense in fourth quarter 2022 compared to the linked quarter is due primarily to increases of
$3.1 million $1.1 million $2.7 million -
The increase in salaries and benefits from the prior year is due primarily to
$7.1 million $4.6 million $1.3 million $1.2 million -
The increase in salaries and benefits expense from the linked quarter was driven by the separation expenses described above, which were
$3.8 million $1.9 million $1.0 million - The increase in occupancy expenses from the prior year was primarily due to higher depreciation and property tax expense due to the opening of the second phase of the Company's headquarters campus in second quarter 2022. The increase in communications and technology expense from prior year was due to higher data processing costs and software expense for the year over year period.
- The increase in professional fees compared to prior year and the linked quarter was due primarily to increased consulting fees related to various departmental and infrastructure projects.
-
The increase in other noninterest expense compared to the prior year and linked quarter is primarily due to asset impairment charges of
$3.3 million
Provision for Credit Losses
-
The Company recorded
$2.8 million $3.1 million -
The allowance for credit losses on loans was
$148.8 million 1.09% of total loans held for investment, net of mortgage warehouse purchase loans, atDecember 31, 2022 , compared to$148.7 million 1.28% atDecember 31, 2021 and compared to$146.4 million 1.10% atSeptember 30, 2022 . The dollar increase from the linked quarter is primarily due to provision taken during the quarter in addition to changes in specific credit loss allocations and net charge-offs taken during the period. The percentage decrease from the prior year reflects changes in the economic outlook, specifically related to the COVID pandemic. -
The allowance for credit losses on off-balance sheet exposures was
$3.9 million December 31, 2022 compared to$4.7 million December 31, 2021 compared to$4.3 million September 30, 2022 . Changes in the allowance for unfunded commitments are generally driven by the remaining unfunded amount and the expected utilization rate of a given loan segment.
Income Taxes
-
Federal income tax expense of
$10.7 million 20.7% compared to tax expense of$13.6 million 20.1% for the prior year quarter and tax expense of$13.5 million 20.5% for the linked quarter.
Fourth Quarter 2022 Balance Sheet Highlights
Loans
-
Total loans held for investment, net of mortgage warehouse purchase loans, were
$13.6 billion December 31, 2022 compared to$13.3 billion September 30, 2022 and$11.7 billion December 31, 2021 . PPP loans totaled$5.0 million $7.0 million $112.1 million December 31, 2022 ,September 30, 2022 andDecember 31, 2021 , respectively. Loans held for investment excluding PPP loans and mortgage warehouse loans increased$320.0 million 9.6% on an annualized basis, during fourth quarter 2022. -
Average mortgage warehouse purchase loans decreased to
$297.1 million December 31, 2022 from$402.2 million September 30, 2022 , and$801.7 million December 31, 2021 , a decrease of$105.1 million 26.1% from the linked quarter and a decrease of$504.6 million 62.9% year over year. The changes from the linked quarter and prior year are reflective of decreased demand and lower volumes related to mortgage rate increases and shorter dwell times for the year over year period.
Asset Quality
-
Total nonperforming assets decreased to
$64.1 million 0.35% of total assets atDecember 31, 2022 , compared to$81.1 million 0.45% of total assets atSeptember 30, 2022 , and increased from$57.5 million 0.31% of total assets atDecember 31, 2021 . -
Total nonperforming loans decreased to
$40.1 million 0.29% of total loans held for investment atDecember 31, 2022 , compared to$57.0 million 0.43% atSeptember 30, 2022 and$57.3 million 0.49% atDecember 31, 2021 . -
The decrease in nonperforming loans and nonperforming assets from the linked quarter is primarily due to the sale of a
$7.7 million $10.2 million -
The decrease in nonperforming loans for the year over year period reflects the sale and payoff of the commercial nonaccrual loans discussed above and the foreclosure of an
$11.7 million $12.5 million $12.9 million -
Charge-offs were
0.02% annualized in the fourth quarter 2022 compared to0.04% annualized in the linked quarter and0.10% annualized in the prior year quarter.
Deposits, Borrowings and Liquidity
-
Total deposits were
$15.1 billion December 31, 2022 compared to$15.0 billion September 30, 2022 and compared to$15.6 billion December 31, 2021 . -
Total borrowings (other than junior subordinated debentures) were
$567.1 million December 31, 2022 , an increase of$100.2 million September 30, 2022 and an increase of$133.7 million December 31, 2021 . The year over year and linked quarter changes reflect additions of FHLB advances of$150.0 million $100.0 million $17.0 million
Capital
-
The Company continues to be well capitalized under regulatory guidelines. At
December 31, 2022 , the estimated common equity Tier 1 to risk-weighted assets, Tier 1 capital to average assets, Tier 1 capital to risk-weighted assets and total capital to risk-weighted asset ratios were10.09% ,9.49% ,10.45% and12.35% , respectively, compared to10.00% ,9.41% ,10.35% , and12.27% , respectively, atSeptember 30, 2022 and11.12% ,8.80% ,11.52% , and13.67% , respectively atDecember 31, 2021 .
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 year ended
About
Conference Call
A conference call covering Independent
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 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 effects of infectious disease outbreaks, including the ongoing COVID-19 pandemic and the significant impact that the COVID-19 pandemic and associated efforts to limit its spread have had and may continue to have on economic conditions and the Company's business, employees, customers, asset quality and financial performance; 2) the Company’s ability to sustain its current internal growth rate and total growth rate; 3) 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
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
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.
Consolidated Financial Data
Three Months Ended (Dollars in thousands, except for share data) (Unaudited) |
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As of and for the Quarter Ended |
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Selected Income Statement Data |
|
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|
|
|
|
|
|
|
||||||
Interest income |
$ |
189,769 |
|
$ |
173,687 |
|
$ |
150,696 |
|
$ |
140,865 |
|
|
$ |
145,954 |
Interest expense |
|
47,982 |
|
|
26,413 |
|
|
12,697 |
|
|
9,717 |
|
|
|
13,303 |
Net interest income |
|
141,787 |
|
|
147,274 |
|
|
137,999 |
|
|
131,148 |
|
|
|
132,651 |
Provision for credit losses |
|
2,833 |
|
|
3,100 |
|
|
— |
|
|
(1,443 |
) |
|
|
— |
Net interest income after provision for credit losses |
|
138,954 |
|
|
144,174 |
|
|
137,999 |
|
|
132,591 |
|
|
|
132,651 |
Noninterest income |
|
11,227 |
|
|
13,477 |
|
|
13,877 |
|
|
12,885 |
|
|
|
15,086 |
Noninterest expense |
|
98,774 |
|
|
91,733 |
|
|
85,925 |
|
|
82,457 |
|
|
|
79,908 |
Income tax expense |
|
10,653 |
|
|
13,481 |
|
|
13,591 |
|
|
12,279 |
|
|
|
13,642 |
Net income |
|
40,754 |
|
|
52,437 |
|
|
52,360 |
|
|
50,740 |
|
|
|
54,187 |
Adjusted net income (1) |
|
49,433 |
|
|
54,880 |
|
|
53,304 |
|
|
52,130 |
|
|
|
54,995 |
|
|
|
|
|
|
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Per Share Data (Common Stock) |
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Earnings: |
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Basic |
$ |
0.99 |
|
$ |
1.27 |
|
$ |
1.25 |
|
$ |
1.19 |
|
|
$ |
1.26 |
Diluted |
|
0.99 |
|
|
1.27 |
|
|
1.25 |
|
|
1.18 |
|
|
|
1.26 |
Adjusted earnings: |
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|
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|
||||||
Basic (1) |
|
1.20 |
|
|
1.33 |
|
|
1.28 |
|
|
1.22 |
|
|
|
1.28 |
Diluted (1) |
|
1.20 |
|
|
1.33 |
|
|
1.27 |
|
|
1.22 |
|
|
|
1.28 |
Dividends |
|
0.38 |
|
|
0.38 |
|
|
0.38 |
|
|
0.38 |
|
|
|
0.36 |
Book value |
|
57.91 |
|
|
57.19 |
|
|
57.45 |
|
|
58.94 |
|
|
|
60.26 |
Tangible book value (1) |
|
32.25 |
|
|
31.44 |
|
|
31.61 |
|
|
34.02 |
|
|
|
35.25 |
Common shares outstanding |
|
41,190,677 |
|
|
41,165,006 |
|
|
41,156,261 |
|
|
42,795,228 |
|
|
|
42,756,234 |
Weighted average basic shares outstanding (2) |
|
41,193,716 |
|
|
41,167,258 |
|
|
41,737,534 |
|
|
42,768,079 |
|
|
|
42,874,182 |
Weighted average diluted shares outstanding (2) |
|
41,285,383 |
|
|
41,253,662 |
|
|
41,813,443 |
|
|
42,841,471 |
|
|
|
42,940,354 |
|
|
|
|
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|
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Selected Period End Balance Sheet Data |
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Total assets |
$ |
18,258,414 |
|
$ |
17,944,493 |
|
$ |
18,107,093 |
|
$ |
17,963,253 |
|
|
$ |
18,732,648 |
Cash and cash equivalents |
|
654,322 |
|
|
516,159 |
|
|
776,131 |
|
|
1,604,256 |
|
|
|
2,608,444 |
Securities available for sale |
|
1,691,784 |
|
|
1,730,163 |
|
|
1,846,132 |
|
|
1,938,726 |
|
|
|
2,006,727 |
Securities held to maturity |
|
207,059 |
|
|
207,516 |
|
|
207,972 |
|
|
188,047 |
|
|
|
— |
Loans, held for sale |
|
11,310 |
|
|
21,973 |
|
|
26,519 |
|
|
22,743 |
|
|
|
32,124 |
Loans, held for investment (3) |
|
13,597,264 |
|
|
13,285,757 |
|
|
12,979,938 |
|
|
11,958,759 |
|
|
|
11,650,598 |
Mortgage warehouse purchase loans |
|
312,099 |
|
|
409,044 |
|
|
538,190 |
|
|
569,554 |
|
|
|
788,848 |
Allowance for credit losses on loans |
|
148,787 |
|
|
146,395 |
|
|
144,170 |
|
|
146,313 |
|
|
|
148,706 |
|
|
1,057,020 |
|
|
1,060,131 |
|
|
1,063,248 |
|
|
1,066,366 |
|
|
|
1,069,511 |
Other real estate owned |
|
23,900 |
|
|
23,900 |
|
|
12,900 |
|
|
— |
|
|
|
— |
Noninterest-bearing deposits |
|
4,736,830 |
|
|
5,107,001 |
|
|
5,123,321 |
|
|
5,003,728 |
|
|
|
5,066,588 |
Interest-bearing deposits |
|
10,384,587 |
|
|
9,854,007 |
|
|
9,940,627 |
|
|
9,846,543 |
|
|
|
10,487,320 |
Borrowings (other than junior subordinated debentures) |
|
567,066 |
|
|
466,892 |
|
|
509,718 |
|
|
419,545 |
|
|
|
433,371 |
Junior subordinated debentures |
|
54,419 |
|
|
54,370 |
|
|
54,320 |
|
|
54,270 |
|
|
|
54,221 |
Total stockholders' equity |
|
2,385,383 |
|
|
2,354,340 |
|
|
2,364,335 |
|
|
2,522,460 |
|
|
|
2,576,650 |
Consolidated Financial Data
Three Months Ended (Dollars in thousands, except for share data) (Unaudited) |
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As of and for the Quarter Ended |
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Selected Performance Metrics |
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Return on average assets |
0.90 |
% |
|
1.16 |
% |
|
1.19 |
% |
|
1.12 |
% |
|
1.11 |
% |
Return on average equity |
6.85 |
|
|
8.66 |
|
|
8.62 |
|
|
7.99 |
|
|
8.35 |
|
Return on tangible equity (4) |
12.42 |
|
|
15.52 |
|
|
15.32 |
|
|
13.64 |
|
|
14.30 |
|
Adjusted return on average assets (1) |
1.09 |
|
|
1.22 |
|
|
1.21 |
|
|
1.15 |
|
|
1.13 |
|
Adjusted return on average equity (1) |
8.31 |
|
|
9.07 |
|
|
8.78 |
|
|
8.21 |
|
|
8.48 |
|
Adjusted return on tangible equity (1) (4) |
15.07 |
|
|
16.24 |
|
|
15.60 |
|
|
14.02 |
|
|
14.51 |
|
Net interest margin |
3.49 |
|
|
3.64 |
|
|
3.51 |
|
|
3.22 |
|
|
3.00 |
|
Efficiency ratio (5) |
62.52 |
|
|
55.13 |
|
|
54.52 |
|
|
55.07 |
|
|
51.96 |
|
Adjusted efficiency ratio (1) (5) |
55.51 |
|
|
53.23 |
|
|
53.75 |
|
|
54.37 |
|
|
51.33 |
|
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Credit Quality Ratios (3) (6) |
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Nonperforming assets to total assets |
0.35 |
% |
|
0.45 |
% |
|
0.46 |
% |
|
0.40 |
% |
|
0.31 |
% |
Nonperforming loans to total loans held for investment |
0.29 |
|
|
0.43 |
|
|
0.54 |
|
|
0.59 |
|
|
0.49 |
|
Nonperforming assets to total loans held for investment and other real estate |
0.47 |
|
|
0.61 |
|
|
0.64 |
|
|
0.59 |
|
|
0.49 |
|
Allowance for credit losses on loans to nonperforming loans |
371.14 |
|
|
256.65 |
|
|
206.28 |
|
|
205.99 |
|
|
259.35 |
|
Allowance for credit losses to total loans held for investment |
1.09 |
|
|
1.10 |
|
|
1.11 |
|
|
1.22 |
|
|
1.28 |
|
Net charge-offs to average loans outstanding (annualized) |
0.02 |
|
|
0.04 |
|
|
0.09 |
|
|
0.01 |
|
|
0.10 |
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Capital Ratios |
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Estimated common equity Tier 1 capital to risk-weighted assets |
10.09 |
% |
|
10.00 |
% |
|
9.81 |
% |
|
11.09 |
% |
|
11.12 |
% |
Estimated tier 1 capital to average assets |
9.49 |
|
|
9.41 |
|
|
9.28 |
|
|
9.38 |
|
|
8.80 |
|
Estimated tier 1 capital to risk-weighted assets |
10.45 |
|
|
10.35 |
|
|
10.17 |
|
|
11.48 |
|
|
11.52 |
|
Estimated total capital to risk-weighted assets |
12.35 |
|
|
12.27 |
|
|
12.24 |
|
|
13.72 |
|
|
13.67 |
|
Total stockholders' equity to total assets |
13.06 |
|
|
13.12 |
|
|
13.06 |
|
|
14.04 |
|
|
13.75 |
|
Tangible common equity to tangible assets (1) |
7.72 |
|
|
7.67 |
|
|
7.63 |
|
|
8.62 |
|
|
8.53 |
|
____________
(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 and includes SBA PPP loans of |
(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 |
Annual Selected Financial Information
Years Ended (Unaudited) |
|||||||
|
Years Ended |
||||||
|
2022 |
|
2021 |
||||
Per Share Data |
|
|
|
||||
Net income - basic |
$ |
4.71 |
|
|
$ |
5.22 |
|
Net income - diluted |
|
4.70 |
|
|
|
5.21 |
|
Cash dividends |
|
1.52 |
|
|
|
1.32 |
|
Book value |
|
57.91 |
|
|
|
60.26 |
|
|
|
|
|
||||
Outstanding Shares |
|
|
|
||||
Period-end shares |
|
41,190,677 |
|
|
|
42,756,234 |
|
Weighted average shares - basic (1) |
|
41,710,829 |
|
|
|
43,070,452 |
|
Weighted average shares - diluted (1) |
|
41,794,088 |
|
|
|
43,129,237 |
|
|
|
|
|
||||
Selected Annual Ratios |
|
|
|
||||
Return on average assets |
|
1.09 |
% |
|
|
1.21 |
% |
Return on average equity |
|
8.04 |
|
|
|
8.86 |
|
Net interest margin |
|
3.46 |
|
|
|
3.10 |
|
(1) Total number of shares includes participating shares (those with dividend rights). |
Consolidated Statements of Income
Three Months and Years Ended (Dollars in thousands) (Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Years Ended |
||||||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Interest income: |
|
|
|
|
|
|
|
|
||||||||
Interest and fees on loans |
|
$ |
174,445 |
|
|
$ |
135,619 |
|
|
$ |
602,210 |
|
|
$ |
547,931 |
|
Interest on taxable securities |
|
|
8,036 |
|
|
|
6,686 |
|
|
|
32,944 |
|
|
|
22,754 |
|
Interest on nontaxable securities |
|
|
2,631 |
|
|
|
2,137 |
|
|
|
10,360 |
|
|
|
8,344 |
|
Interest on interest-bearing deposits and other |
|
|
4,657 |
|
|
|
1,512 |
|
|
|
9,503 |
|
|
|
4,533 |
|
Total interest income |
|
|
189,769 |
|
|
|
145,954 |
|
|
|
655,017 |
|
|
|
583,562 |
|
Interest expense: |
|
|
|
|
|
|
|
|
||||||||
Interest on deposits |
|
|
42,322 |
|
|
|
8,858 |
|
|
|
77,628 |
|
|
|
44,199 |
|
Interest on FHLB advances |
|
|
1,231 |
|
|
|
505 |
|
|
|
2,017 |
|
|
|
2,038 |
|
Interest on other borrowings |
|
|
3,465 |
|
|
|
3,504 |
|
|
|
14,451 |
|
|
|
15,247 |
|
Interest on junior subordinated debentures |
|
|
964 |
|
|
|
436 |
|
|
|
2,713 |
|
|
|
1,756 |
|
Total interest expense |
|
|
47,982 |
|
|
|
13,303 |
|
|
|
96,809 |
|
|
|
63,240 |
|
Net interest income |
|
|
141,787 |
|
|
|
132,651 |
|
|
|
558,208 |
|
|
|
520,322 |
|
Provision for credit losses |
|
|
2,833 |
|
|
|
— |
|
|
|
4,490 |
|
|
|
(9,000 |
) |
Net interest income after provision for credit losses |
|
|
138,954 |
|
|
|
132,651 |
|
|
|
553,718 |
|
|
|
529,322 |
|
Noninterest income: |
|
|
|
|
|
|
|
|
||||||||
Service charges on deposit accounts |
|
|
3,208 |
|
|
|
2,712 |
|
|
|
12,204 |
|
|
|
9,842 |
|
Investment management fees |
|
|
2,148 |
|
|
|
2,247 |
|
|
|
9,146 |
|
|
|
8,586 |
|
Mortgage banking revenue |
|
|
1,243 |
|
|
|
4,443 |
|
|
|
8,938 |
|
|
|
23,157 |
|
Mortgage warehouse purchase program fees |
|
|
391 |
|
|
|
1,495 |
|
|
|
2,676 |
|
|
|
6,908 |
|
(Loss) gain on sale of loans |
|
|
(343 |
) |
|
|
30 |
|
|
|
(1,844 |
) |
|
|
56 |
|
Gain on sale of other real estate |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
63 |
|
Gain on sale of securities available for sale |
|
|
— |
|
|
|
13 |
|
|
|
— |
|
|
|
13 |
|
Loss on sale and disposal of premises and equipment |
|
|
(184 |
) |
|
|
(243 |
) |
|
|
(494 |
) |
|
|
(304 |
) |
Increase in cash surrender value of BOLI |
|
|
1,384 |
|
|
|
1,368 |
|
|
|
5,371 |
|
|
|
5,209 |
|
Other |
|
|
3,380 |
|
|
|
3,021 |
|
|
|
15,469 |
|
|
|
12,987 |
|
Total noninterest income |
|
|
11,227 |
|
|
|
15,086 |
|
|
|
51,466 |
|
|
|
66,517 |
|
Noninterest expense: |
|
|
|
|
|
|
|
|
||||||||
Salaries and employee benefits |
|
|
57,250 |
|
|
|
46,268 |
|
|
|
212,087 |
|
|
|
180,336 |
|
Occupancy |
|
|
11,412 |
|
|
|
9,972 |
|
|
|
42,938 |
|
|
|
40,688 |
|
Communications and technology |
|
|
6,661 |
|
|
|
5,759 |
|
|
|
24,937 |
|
|
|
22,355 |
|
|
|
|
2,052 |
|
|
|
1,366 |
|
|
|
6,883 |
|
|
|
5,865 |
|
Advertising and public relations |
|
|
523 |
|
|
|
217 |
|
|
|
2,106 |
|
|
|
1,097 |
|
Other real estate owned expenses, net |
|
|
(168 |
) |
|
|
— |
|
|
|
31 |
|
|
|
4 |
|
Amortization of other intangible assets |
|
|
3,111 |
|
|
|
3,145 |
|
|
|
12,491 |
|
|
|
12,580 |
|
Professional fees |
|
|
4,581 |
|
|
|
3,558 |
|
|
|
15,571 |
|
|
|
15,530 |
|
Other |
|
|
13,352 |
|
|
|
9,623 |
|
|
|
41,845 |
|
|
|
35,151 |
|
Total noninterest expense |
|
|
98,774 |
|
|
|
79,908 |
|
|
|
358,889 |
|
|
|
313,606 |
|
Income before taxes |
|
|
51,407 |
|
|
|
67,829 |
|
|
|
246,295 |
|
|
|
282,233 |
|
Income tax expense |
|
|
10,653 |
|
|
|
13,642 |
|
|
|
50,004 |
|
|
|
57,483 |
|
Net income |
|
$ |
40,754 |
|
|
$ |
54,187 |
|
|
$ |
196,291 |
|
|
$ |
224,750 |
|
Consolidated Balance Sheets
As of (Dollars in thousands) (Unaudited) |
||||||
|
|
|||||
Assets |
2022 |
|
2021 |
|||
Cash and due from banks |
$ |
134,183 |
|
|
$ |
243,926 |
Interest-bearing deposits in other banks |
|
520,139 |
|
|
|
2,364,518 |
Cash and cash equivalents |
|
654,322 |
|
|
|
2,608,444 |
Certificates of deposit held in other banks |
|
496 |
|
|
|
3,245 |
Securities available for sale, at fair value |
|
1,691,784 |
|
|
|
2,006,727 |
Securities held to maturity, net of allowance for credit losses of |
|
207,059 |
|
|
|
— |
Loans held for sale (includes |
|
11,310 |
|
|
|
32,124 |
Loans, net of allowance for credit losses of |
|
13,760,576 |
|
|
|
12,290,740 |
Premises and equipment, net |
|
355,368 |
|
|
|
308,023 |
Other real estate owned |
|
23,900 |
|
|
|
— |
|
|
23,436 |
|
|
|
21,573 |
Bank-owned life insurance (BOLI) |
|
240,448 |
|
|
|
235,637 |
Deferred tax asset |
|
78,669 |
|
|
|
26,178 |
|
|
994,021 |
|
|
|
994,021 |
Other intangible assets, net |
|
62,999 |
|
|
|
75,490 |
Other assets |
|
154,026 |
|
|
|
130,446 |
Total assets |
$ |
18,258,414 |
|
|
$ |
18,732,648 |
|
|
|
|
|||
Liabilities and Stockholders’ Equity |
|
|
|
|||
Deposits: |
|
|
|
|||
Noninterest-bearing |
$ |
4,736,830 |
|
|
$ |
5,066,588 |
Interest-bearing |
|
10,384,587 |
|
|
|
10,487,320 |
Total deposits |
|
15,121,417 |
|
|
|
15,553,908 |
FHLB advances |
|
300,000 |
|
|
|
150,000 |
Other borrowings |
|
267,066 |
|
|
|
283,371 |
Junior subordinated debentures |
|
54,419 |
|
|
|
54,221 |
Other liabilities |
|
130,129 |
|
|
|
114,498 |
Total liabilities |
|
15,873,031 |
|
|
|
16,155,998 |
Commitments and contingencies |
|
— |
|
|
|
— |
Stockholders’ equity: |
|
|
|
|||
Preferred stock (0 and 0 shares outstanding, respectively) |
|
— |
|
|
|
— |
Common stock (41,190,677 and 42,756,234 shares outstanding, respectively) |
|
412 |
|
|
|
428 |
Additional paid-in capital |
|
1,959,193 |
|
|
|
1,945,497 |
Retained earnings |
|
638,354 |
|
|
|
625,484 |
Accumulated other comprehensive (loss) income |
|
(212,576 |
) |
|
|
5,241 |
Total stockholders’ equity |
|
2,385,383 |
|
|
|
2,576,650 |
Total liabilities and stockholders’ equity |
$ |
18,258,414 |
|
|
$ |
18,732,648 |
Consolidated Average Balance Sheet Amounts, Interest Earned and Yield Analysis
Three Months Ended (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 |
||||||||||||||||
|
|
2022 |
|
2021 |
||||||||||||||
|
|
Average
|
|
Interest |
|
Yield/
|
|
Average
|
|
Interest |
|
Yield/
|
||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loans (1) |
|
$ |
13,722,274 |
|
$ |
174,445 |
|
5.04 |
% |
|
$ |
12,294,835 |
|
$ |
135,619 |
|
4.38 |
% |
Taxable securities |
|
|
1,475,585 |
|
|
8,036 |
|
2.16 |
|
|
|
1,493,924 |
|
|
6,686 |
|
1.78 |
|
Nontaxable securities |
|
|
424,519 |
|
|
2,631 |
|
2.46 |
|
|
|
376,368 |
|
|
2,137 |
|
2.25 |
|
Interest-bearing deposits and other |
|
|
486,369 |
|
|
4,657 |
|
3.80 |
|
|
|
3,370,591 |
|
|
1,512 |
|
0.18 |
|
Total interest-earning assets |
|
|
16,108,747 |
|
|
189,769 |
|
4.67 |
|
|
|
17,535,718 |
|
|
145,954 |
|
3.30 |
|
Noninterest-earning assets |
|
|
1,885,384 |
|
|
|
|
|
|
1,839,196 |
|
|
|
|
||||
Total assets |
|
$ |
17,994,131 |
|
|
|
|
|
$ |
19,374,914 |
|
|
|
|
||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Checking accounts |
|
$ |
5,989,205 |
|
$ |
25,440 |
|
1.69 |
% |
|
$ |
6,375,607 |
|
$ |
4,850 |
|
0.30 |
% |
Savings accounts |
|
|
778,692 |
|
|
98 |
|
0.05 |
|
|
|
749,412 |
|
|
223 |
|
0.12 |
|
Money market accounts |
|
|
1,935,083 |
|
|
10,380 |
|
2.13 |
|
|
|
2,616,661 |
|
|
2,625 |
|
0.40 |
|
Certificates of deposit |
|
|
1,280,598 |
|
|
6,404 |
|
1.98 |
|
|
|
1,147,917 |
|
|
1,160 |
|
0.40 |
|
Total deposits |
|
|
9,983,578 |
|
|
42,322 |
|
1.68 |
|
|
|
10,889,597 |
|
|
8,858 |
|
0.32 |
|
FHLB advances |
|
|
218,478 |
|
|
1,231 |
|
2.24 |
|
|
|
347,826 |
|
|
505 |
|
0.58 |
|
Other borrowings - short-term |
|
|
— |
|
|
— |
|
— |
|
|
|
8,457 |
|
|
40 |
|
1.88 |
|
Other borrowings - long-term |
|
|
267,005 |
|
|
3,465 |
|
5.15 |
|
|
|
266,311 |
|
|
3,464 |
|
5.16 |
|
Junior subordinated debentures |
|
|
54,402 |
|
|
964 |
|
7.03 |
|
|
|
54,204 |
|
|
436 |
|
3.19 |
|
Total interest-bearing liabilities |
|
|
10,523,463 |
|
|
47,982 |
|
1.81 |
|
|
|
11,566,395 |
|
|
13,303 |
|
0.46 |
|
Noninterest-bearing checking accounts |
|
|
4,988,091 |
|
|
|
|
|
|
5,106,155 |
|
|
|
|
||||
Noninterest-bearing liabilities |
|
|
122,940 |
|
|
|
|
|
|
127,990 |
|
|
|
|
||||
Stockholders’ equity |
|
|
2,359,637 |
|
|
|
|
|
|
2,574,374 |
|
|
|
|
||||
Total liabilities and equity |
|
$ |
17,994,131 |
|
|
|
|
|
$ |
19,374,914 |
|
|
|
|
||||
Net interest income |
|
|
|
$ |
141,787 |
|
|
|
|
|
$ |
132,651 |
|
|
||||
Interest rate spread |
|
|
|
|
|
2.86 |
% |
|
|
|
|
|
2.84 |
% |
||||
Net interest margin (2) |
|
|
|
|
|
3.49 |
|
|
|
|
|
|
3.00 |
|
||||
Net interest income and margin (tax equivalent basis) (3) |
|
|
|
$ |
142,845 |
|
3.52 |
|
|
|
|
$ |
133,681 |
|
3.02 |
|
||
Average interest-earning assets to interest-bearing liabilities |
|
|
|
|
|
153.07 |
|
|
|
|
|
|
151.61 |
|
||||
____________
(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 |
(4) Yield and rates for the three month periods are annualized. |
Consolidated Average Balance Sheet Amounts, Interest Earned and Yield Analysis
For The Years Ended (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. |
||||||||||||||||||
|
|
For The Years Ended |
||||||||||||||||
|
|
2022 |
|
2021 |
||||||||||||||
|
|
Average
|
|
Interest |
|
Yield/Rate |
|
Average
|
|
Interest |
|
Yield/Rate |
||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loans (1) |
|
$ |
13,148,633 |
|
$ |
602,210 |
|
4.58 |
% |
|
$ |
12,501,641 |
|
$ |
547,931 |
|
4.38 |
% |
Taxable securities |
|
|
1,617,454 |
|
|
32,944 |
|
2.04 |
|
|
|
1,204,153 |
|
|
22,754 |
|
1.89 |
|
Nontaxable securities |
|
|
429,057 |
|
|
10,360 |
|
2.41 |
|
|
|
358,261 |
|
|
8,344 |
|
2.33 |
|
Interest-bearing deposits and other |
|
|
921,391 |
|
|
9,503 |
|
1.03 |
|
|
|
2,693,812 |
|
|
4,533 |
|
0.17 |
|
Total interest-earning assets |
|
|
16,116,535 |
|
|
655,017 |
|
4.06 |
|
|
|
16,757,867 |
|
|
583,562 |
|
3.48 |
|
Noninterest-earning assets |
|
|
1,892,555 |
|
|
|
|
|
|
1,800,301 |
|
|
|
|
||||
Total assets |
|
$ |
18,009,090 |
|
|
|
|
|
$ |
18,558,168 |
|
|
|
|
||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Checking accounts |
|
$ |
6,002,530 |
|
$ |
45,405 |
|
0.76 |
% |
|
$ |
5,967,655 |
|
$ |
22,615 |
|
0.38 |
% |
Savings accounts |
|
|
787,937 |
|
|
387 |
|
0.05 |
|
|
|
711,401 |
|
|
1,034 |
|
0.15 |
|
Money market accounts |
|
|
2,130,908 |
|
|
21,562 |
|
1.01 |
|
|
|
2,584,386 |
|
|
13,580 |
|
0.53 |
|
Certificates of deposit |
|
|
1,027,561 |
|
|
10,274 |
|
1.00 |
|
|
|
1,269,736 |
|
|
6,970 |
|
0.55 |
|
Total deposits |
|
|
9,948,936 |
|
|
77,628 |
|
0.78 |
|
|
|
10,533,178 |
|
|
44,199 |
|
0.42 |
|
FHLB advances |
|
|
150,890 |
|
|
2,017 |
|
1.34 |
|
|
|
362,192 |
|
|
2,038 |
|
0.56 |
|
Other borrowings - short-term |
|
|
15,918 |
|
|
593 |
|
3.73 |
|
|
|
6,278 |
|
|
118 |
|
1.88 |
|
Other borrowings - long-term |
|
|
266,746 |
|
|
13,858 |
|
5.20 |
|
|
|
287,860 |
|
|
15,129 |
|
5.26 |
|
Junior subordinated debentures |
|
|
54,328 |
|
|
2,713 |
|
4.99 |
|
|
|
54,130 |
|
|
1,756 |
|
3.24 |
|
Total interest-bearing liabilities |
|
|
10,436,818 |
|
|
96,809 |
|
0.93 |
|
|
|
11,243,638 |
|
|
63,240 |
|
0.56 |
|
Noninterest-bearing checking accounts |
|
|
5,018,631 |
|
|
|
|
|
|
4,675,667 |
|
|
|
|
||||
Noninterest-bearing liabilities |
|
|
111,326 |
|
|
|
|
|
|
102,205 |
|
|
|
|
||||
Stockholders’ equity |
|
|
2,442,315 |
|
|
|
|
|
|
2,536,658 |
|
|
|
|
||||
Total liabilities and equity |
|
$ |
18,009,090 |
|
|
|
|
|
$ |
18,558,168 |
|
|
|
|
||||
Net interest income |
|
|
|
$ |
558,208 |
|
|
|
|
|
$ |
520,322 |
|
|
||||
Interest rate spread |
|
|
|
|
|
3.13 |
% |
|
|
|
|
|
2.92 |
% |
||||
Net interest margin (2) |
|
|
|
|
|
3.46 |
|
|
|
|
|
|
3.10 |
|
||||
Net interest income and margin (tax equivalent basis) (3) |
|
|
|
$ |
562,633 |
|
3.49 |
|
|
|
|
$ |
524,260 |
|
3.13 |
|
||
Average interest-earning assets to interest-bearing liabilities |
|
|
|
|
|
154.42 |
|
|
|
|
|
|
149.04 |
|
||||
____________
(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 |
Loan Portfolio Composition
As of (Dollars in thousands) (Unaudited) |
||||||||||||||
Total Loans By Class |
|
|
|
|
||||||||||
|
|
|
|
|
||||||||||
|
|
Amount |
|
% of Total |
|
Amount |
|
% of Total |
||||||
Commercial (1) |
|
$ |
2,240,959 |
|
|
16.1 |
% |
|
$ |
1,983,886 |
|
|
15.9 |
% |
Mortgage warehouse purchase loans |
|
|
312,099 |
|
|
2.2 |
|
|
|
788,848 |
|
|
6.3 |
|
Real estate: |
|
|
|
|
|
|
|
|
||||||
Commercial real estate |
|
|
7,817,447 |
|
|
56.2 |
|
|
|
6,617,455 |
|
|
53.1 |
|
Commercial construction, land and land development |
|
|
1,231,071 |
|
|
8.8 |
|
|
|
1,180,181 |
|
|
9.5 |
|
Residential real estate (2) |
|
|
1,604,169 |
|
|
11.5 |
|
|
|
1,332,246 |
|
|
10.7 |
|
Single-family interim construction |
|
|
508,839 |
|
|
3.7 |
|
|
|
380,627 |
|
|
3.0 |
|
Agricultural |
|
|
124,422 |
|
|
0.9 |
|
|
|
106,512 |
|
|
0.8 |
|
Consumer |
|
|
81,667 |
|
|
0.6 |
|
|
|
81,815 |
|
|
0.7 |
|
Total loans |
|
|
13,920,673 |
|
|
100.0 |
% |
|
|
12,471,570 |
|
|
100.0 |
% |
Allowance for credit losses |
|
|
(148,787 |
) |
|
|
|
|
(148,706 |
) |
|
|
||
Total loans, net |
|
$ |
13,771,886 |
|
|
|
|
$ |
12,322,864 |
|
|
|
||
____________
(1) Includes SBA PPP loans of |
(2) Includes loans held for sale of |
Reconciliation of Non-GAAP Financial Measures
Three Months Ended (Dollars in thousands, except for share data) (Unaudited) |
||||||||||||||||||||
|
|
For the Three Months Ended |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
ADJUSTED NET INCOME |
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Interest Income - Reported |
(a) |
$ |
141,787 |
|
|
$ |
147,274 |
|
|
$ |
137,999 |
|
|
$ |
131,148 |
|
|
$ |
132,651 |
|
Provision Expense - Reported |
(b) |
|
2,833 |
|
|
|
3,100 |
|
|
|
— |
|
|
|
(1,443 |
) |
|
|
— |
|
Noninterest Income - Reported |
(c) |
|
11,227 |
|
|
|
13,477 |
|
|
|
13,877 |
|
|
|
12,885 |
|
|
|
15,086 |
|
Loss (gain) on sale of loans |
|
|
343 |
|
|
|
— |
|
|
|
17 |
|
|
|
1,484 |
|
|
|
(30 |
) |
Gain on sale of securities available for sale |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(13 |
) |
Loss on sale and disposal of premises and equipment |
|
|
184 |
|
|
|
101 |
|
|
|
46 |
|
|
|
163 |
|
|
|
243 |
|
Recoveries on loans charged off prior to acquisition |
|
|
(36 |
) |
|
|
(60 |
) |
|
|
(45 |
) |
|
|
(51 |
) |
|
|
(27 |
) |
Adjusted Noninterest Income |
(d) |
|
11,718 |
|
|
|
13,518 |
|
|
|
13,895 |
|
|
|
14,481 |
|
|
|
15,259 |
|
Noninterest Expense - Reported |
(e) |
|
98,774 |
|
|
|
91,733 |
|
|
|
85,925 |
|
|
|
82,457 |
|
|
|
79,908 |
|
Separation expense (1) |
|
|
(7,131 |
) |
|
|
(2,809 |
) |
|
|
(1,106 |
) |
|
|
— |
|
|
|
— |
|
Economic development employee incentive grant |
|
|
— |
|
|
|
1,000 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Impairment of assets |
|
|
(3,286 |
) |
|
|
(1,156 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
COVID-19 expense (2) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(614 |
) |
Acquisition expense (3) |
|
|
(40 |
) |
|
|
(65 |
) |
|
|
(65 |
) |
|
|
(130 |
) |
|
|
(225 |
) |
Adjusted Noninterest Expense |
(f) |
|
88,317 |
|
|
|
88,703 |
|
|
|
84,754 |
|
|
|
82,327 |
|
|
|
79,069 |
|
Income Tax Expense - Reported |
(g) |
|
10,653 |
|
|
|
13,481 |
|
|
|
13,591 |
|
|
|
12,279 |
|
|
|
13,642 |
|
Net Income - Reported |
(a) - (b) + (c) - (e) - (g) = (h) |
|
40,754 |
|
|
|
52,437 |
|
|
|
52,360 |
|
|
|
50,740 |
|
|
|
54,187 |
|
Adjusted Net Income (4) |
(a) - (b) + (d) - (f) = (i) |
$ |
49,433 |
|
|
$ |
54,880 |
|
|
$ |
53,304 |
|
|
$ |
52,130 |
|
|
$ |
54,995 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
ADJUSTED PROFITABILITY (5) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Average Assets |
(j) |
$ |
17,994,131 |
|
|
$ |
17,893,072 |
|
|
$ |
17,715,989 |
|
|
$ |
18,439,352 |
|
|
$ |
19,374,914 |
|
Total Average Stockholders' Equity |
(k) |
|
2,359,637 |
|
|
|
2,401,544 |
|
|
|
2,435,117 |
|
|
|
2,575,784 |
|
|
|
2,574,374 |
|
Total Average Tangible Stockholders' Equity (6) |
(l) |
|
1,301,558 |
|
|
|
1,340,363 |
|
|
|
1,370,825 |
|
|
|
1,508,370 |
|
|
|
1,503,815 |
|
Reported Return on Average Assets |
(h) / (j) |
|
0.90 |
% |
|
|
1.16 |
% |
|
|
1.19 |
% |
|
|
1.12 |
% |
|
|
1.11 |
% |
Reported Return on Average Equity |
(h) / (k) |
|
6.85 |
|
|
|
8.66 |
|
|
|
8.62 |
|
|
|
7.99 |
|
|
|
8.35 |
|
Reported Return on Average Tangible Equity |
(h) / (l) |
|
12.42 |
|
|
|
15.52 |
|
|
|
15.32 |
|
|
|
13.64 |
|
|
|
14.30 |
|
Adjusted Return on Average Assets (7) |
(i) / (j) |
|
1.09 |
|
|
|
1.22 |
|
|
|
1.21 |
|
|
|
1.15 |
|
|
|
1.13 |
|
Adjusted Return on Average Equity (7) |
(i) / (k) |
|
8.31 |
|
|
|
9.07 |
|
|
|
8.78 |
|
|
|
8.21 |
|
|
|
8.48 |
|
Adjusted Return on Tangible Equity (7) |
(i) / (l) |
|
15.07 |
|
|
|
16.24 |
|
|
|
15.60 |
|
|
|
14.02 |
|
|
|
14.51 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
EFFICIENCY RATIO |
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortization of other intangible assets |
(m) |
$ |
3,111 |
|
|
$ |
3,117 |
|
|
$ |
3,118 |
|
|
$ |
3,145 |
|
|
$ |
3,145 |
|
Reported Efficiency Ratio |
(e - m) / (a + c) |
|
62.52 |
% |
|
|
55.13 |
% |
|
|
54.52 |
% |
|
|
55.07 |
% |
|
|
51.96 |
% |
Adjusted Efficiency Ratio |
(f - m) / (a + d) |
|
55.51 |
|
|
|
53.23 |
|
|
|
53.75 |
|
|
|
54.37 |
|
|
|
51.33 |
|
____________
(1) Separation expenses include severance and accelerated vesting expense for stock awards related to the separation of certain employees. The quarter ended |
(2) COVID-19 expense includes expenses for COVID testing kits, vaccination incentive bonuses, and personal protection and cleaning supplies. |
(3) Acquisition expenses includes compensation related expenses for equity awards granted at acquisition. |
(4) Assumes an adjusted effective tax rate of |
(5) Quarterly metrics are annualized. |
(6) Excludes average balance of goodwill and net other intangible assets. |
(7) Calculated using adjusted net income. |
Reconciliation of Non-GAAP Financial Measures
As of (Dollars in thousands, except per share information) (Unaudited) |
|||||||||||||||||||
Tangible Book Value & Tangible Common Equity To Tangible Assets Ratio |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
As of the Quarter Ended |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Tangible Common Equity |
|
|
|
|
|
|
|
|
|
||||||||||
Total common stockholders' equity |
$ |
2,385,383 |
|
|
$ |
2,354,340 |
|
|
$ |
2,364,335 |
|
|
$ |
2,522,460 |
|
|
$ |
2,576,650 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
(994,021 |
) |
|
|
(994,021 |
) |
|
|
(994,021 |
) |
|
|
(994,021 |
) |
|
|
(994,021 |
) |
Other intangible assets, net |
|
(62,999 |
) |
|
|
(66,110 |
) |
|
|
(69,227 |
) |
|
|
(72,345 |
) |
|
|
(75,490 |
) |
Tangible common equity |
$ |
1,328,363 |
|
|
$ |
1,294,209 |
|
|
$ |
1,301,087 |
|
|
$ |
1,456,094 |
|
|
$ |
1,507,139 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tangible Assets |
|
|
|
|
|
|
|
|
|
||||||||||
Total assets |
$ |
18,258,414 |
|
|
$ |
17,944,493 |
|
|
$ |
18,107,093 |
|
|
$ |
17,963,253 |
|
|
$ |
18,732,648 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
(994,021 |
) |
|
|
(994,021 |
) |
|
|
(994,021 |
) |
|
|
(994,021 |
) |
|
|
(994,021 |
) |
Other intangible assets, net |
|
(62,999 |
) |
|
|
(66,110 |
) |
|
|
(69,227 |
) |
|
|
(72,345 |
) |
|
|
(75,490 |
) |
Tangible assets |
$ |
17,201,394 |
|
|
$ |
16,884,362 |
|
|
$ |
17,043,845 |
|
|
$ |
16,896,887 |
|
|
$ |
17,663,137 |
|
Common shares outstanding |
|
41,190,677 |
|
|
|
41,165,006 |
|
|
|
41,156,261 |
|
|
|
42,795,228 |
|
|
|
42,756,234 |
|
Tangible common equity to tangible assets |
|
7.72 |
% |
|
|
7.67 |
% |
|
|
7.63 |
% |
|
|
8.62 |
% |
|
|
8.53 |
% |
Book value per common share |
$ |
57.91 |
|
|
$ |
57.19 |
|
|
$ |
57.45 |
|
|
$ |
58.94 |
|
|
$ |
60.26 |
|
Tangible book value per common share |
|
32.25 |
|
|
|
31.44 |
|
|
|
31.61 |
|
|
|
34.02 |
|
|
|
35.25 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230123005717/en/
Analysts/Investors:
Executive Vice President, Chief Financial Officer
(972) 562-9004
Paul.Langdale@ifinancial.com
Media:
Executive Vice President, Chief Marketing Officer
(972) 562-9004
Wendi.Costlow@ifinancial.com
Source:
FAQ
What was Independent Bank Group's net income for Q4 2022?
How did IBTX perform in terms of loan growth in Q4 2022?
What was the adjusted net income for IBTX for the full year 2022?
What dividend did IBTX declare for Q4 2022?
How much stock is IBTX authorized to repurchase?
