Independent Bank Group, Inc. Reports Second Quarter Financial Results and Declares Quarterly Dividend
Independent Bank Group (NASDAQ: IBTX) reported a net loss of $493.5 million, or $11.89 per diluted share, for Q2 2024. This was significantly impacted by a $518.0 million non-cash goodwill impairment charge due to the company's stock price trading below book value and the announced merger with SouthState Excluding this and other non-recurring items, adjusted net income was $24.9 million, or $0.60 per diluted share.
Key highlights include:
- Net interest margin expanded by 5 basis points to 2.47%
- Loan yields increased by 10 basis points to 6.03%
- Nonperforming asset ratio remained healthy at 0.35%
- Total capital ratio grew to 11.75%
The Board of Directors declared a quarterly cash dividend of $0.38 per share, payable on August 19, 2024.
Independent Bank Group (NASDAQ: IBTX) ha riportato una perdita netta di 493,5 milioni di dollari, ovvero 11,89 dollari per azione diluita, per il secondo trimestre del 2024. Questo è stato significativamente influenzato da una svalutazione non monetaria del goodwill di 518,0 milioni di dollari a causa del prezzo delle azioni dell'azienda che scade al di sotto del valore contabile e della fusione annunciata con SouthState. Escludendo questo e altri elementi non ricorrenti, l'utile netto rettificato è stato di 24,9 milioni di dollari, ovvero 0,60 dollari per azione diluita.
I punti salienti includono:
- Il margine di interesse netto è aumentato di 5 punti base, raggiungendo il 2,47%
- I rendimenti sui prestiti sono aumentati di 10 punti base, toccando il 6,03%
- Il rapporto di attività non performanti è rimasto sano al 0,35%
- Il rapporto di capitale totale è cresciuto all'11,75%
Il Consiglio di Amministrazione ha dichiarato un dividendo in contanti trimestrale di 0,38 dollari per azione, pagabile il 19 agosto 2024.
Independent Bank Group (NASDAQ: IBTX) reportó una pérdida neta de 493,5 millones de dólares, o 11,89 dólares por acción diluida, para el segundo trimestre de 2024. Esto fue impactado significativamente por un cargo por deterioro de goodwill no monetario de 518,0 millones de dólares debido a que el precio de las acciones de la compañía se cotizaba por debajo del valor en libros y por la fusión anunciada con SouthState. Excluyendo esto y otros elementos no recurrentes, el ingreso neto ajustado fue de 24,9 millones de dólares, o 0,60 dólares por acción diluida.
Los aspectos destacados incluyen:
- El margen de interés neto se expandió en 5 puntos básicos, alcanzando el 2,47%
- Los rendimientos de los préstamos aumentaron en 10 puntos básicos, alcanzando el 6,03%
- El ratio de activos no productivos se mantuvo saludable en 0,35%
- El ratio de capital total creció al 11,75%
La Junta de Directores declaró un dividendo en efectivo trimestral de 0,38 dólares por acción, pagadero el 19 de agosto de 2024.
Independent Bank Group (NASDAQ: IBTX)는 2024년 2분기에 4억 9천 3백만 달러, 즉 희석주당 11.89 달러의 순손실을 보고했습니다. 이는 회사의 주가가 장부가치 아래에서 거래되고 SouthState와의 합병이 발표됨에 따라 5억 1천 8백만 달러의 비현금적 영업권 손상차손으로 인해 상당한 영향을 받았습니다. 이를 제외한 조정된 순이익은 2천 4백 9십만 달러, 즉 희석주당 0.60 달러였습니다.
주요 하이라이트는 다음과 같습니다:
- 순이자 마진이 5bp 확대되어 2.47%에 도달했습니다.
- 대출 수익률이 10bp 증가하여 6.03%에 도달했습니다.
- 부실 자산 비율이 0.35%로 건전하게 유지되고 있습니다.
- 총 자본 비율이 11.75%로 증가했습니다.
이사회는 2024년 8월 19일 지급되는 주당 0.38 달러의 분기 현금 배당금을 선언했습니다.
Independent Bank Group (NASDAQ: IBTX) a annoncé une perte nette de 493,5 millions de dollars, soit 11,89 dollars par action diluée, pour le 2ème trimestre 2024. Cela a été fortement impacté par une charge de dépréciation du goodwill non monétaire de 518,0 millions de dollars en raison du fait que le prix de l'action de la société se négociait en dessous de sa valeur comptable et l'annonce de la fusion avec SouthState. En excluant cela et d'autres éléments non récurrents, le bénéfice net ajusté était de 24,9 millions de dollars, soit 0,60 dollars par action diluée.
Les points forts comprennent :
- La marge d'intérêt nette s'est élargie de 5 points de base pour atteindre 2,47%
- Les rendements des prêts ont augmenté de 10 points de base pour atteindre 6,03%
- Le ratio des actifs non performants est resté sain à 0,35%
- Le ratio de capital total a augmenté à 11,75%
Le conseil d'administration a déclaré un dividende en espèces trimestriel de 0,38 dollars par action, payable le 19 août 2024.
Independent Bank Group (NASDAQ: IBTX) berichtete für das 2. Quartal 2024 von einem Nettoverlust in Höhe von 493,5 Millionen Dollar, bzw. 11,89 Dollar pro verwässerter Aktie. Dies wurde erheblich durch eine nicht zahlungswirksame Wertminderung des Goodwills in Höhe von 518,0 Millionen Dollar beeinflusst, da der Aktienkurs des Unternehmens unter dem Buchwert lag und die angekündigte Fusion mit SouthState. Ohne diesen und andere nicht wiederkehrende Posten betrug das bereinigte Nettoergebnis 24,9 Millionen Dollar, bzw. 0,60 Dollar pro verwässerter Aktie.
Wichtige Highlights sind:
- Die Nettozinsspanne erweiterte sich um 5 Basispunkte auf 2,47%
- Die Darlehensrenditen stiegen um 10 Basispunkte auf 6,03%
- Das Verhältnis der notleidenden Vermögenswerte blieb mit 0,35% gesund
- Das Gesamtkapitalverhältnis wuchs auf 11,75%
Der Vorstand erklärte eine vierteljährliche Bar-Dividende von 0,38 Dollar pro Aktie, zahlbar am 19. August 2024.
- Net interest margin expanded by 5 basis points to 2.47%
- Loan yields increased by 10 basis points to 6.03%
- Total capital ratio grew by 7 basis points to 11.75%
- Tangible common equity (TCE) ratio grew by 10 basis points to 7.72%
- Average mortgage warehouse purchase loans increased by 30.3% year-over-year
- Net loss of $493.5 million, or $11.89 per diluted share, due to goodwill impairment
- Goodwill impairment charge of $518.0 million
- Net interest income decreased to $105.1 million from $113.6 million in Q2 2023
- Noninterest income decreased $662 thousand compared to Q2 2023
- Nonperforming loans increased to $56.1 million from $37.9 million in Q2 2023
Insights
Independent Bank Group's Q2 2024 results present a complex financial picture. The headline
Adjusting for this impairment and other non-recurring items, the bank's performance appears more stable, with adjusted net income of
The bank's net interest margin expanded by
Credit quality remains strong, with a nonperforming asset ratio of
The announced merger with SouthState is a significant development that could reshape the bank's future operations and market position. Investors should closely monitor the progress of this merger and its potential impacts on the bank's strategy and performance.
The banking sector is navigating a complex landscape and Independent Bank Group's results reflect these challenges. The
Despite this non-cash charge, there are positive indicators in the bank's core operations. The expansion of net interest margin and loan yields suggests the bank is adapting to the higher interest rate environment. This is important as the industry grapples with margin pressures and shifting deposit dynamics.
The bank's deposit growth is noteworthy, with total deposits increasing to
The reduction in borrowings, particularly the payoff of BTFP advances and FHLB borrowings, suggests improved liquidity management. This could position the bank more favorably in terms of funding costs and balance sheet flexibility.
The pending acquisition by SouthState is a significant development that could reshape the competitive landscape in the bank's operating markets. This consolidation trend is likely to continue in the regional banking sector as institutions seek scale and operational efficiencies.
Investors should watch for potential synergies and integration challenges as this merger progresses, as well as any shifts in the bank's market positioning and competitive stance post-merger.
The Company also announced that its Board of Directors declared a quarterly cash dividend of
Highlights
- Pending acquisition by SouthState Corporation announced on May 20, 2024
-
Net interest margin expanded by 5 basis points to
2.47% compared to2.42% in linked quarter -
Loan yields expanded by 10 basis points to
6.03% -
Continued healthy credit metrics with nonperforming asset ratio of
0.35% and last twelve months' net charge-off to average total loans ratio of0.03% -
Total capital ratio grew by 7 basis points to
11.75% , and (non-GAAP) tangible common equity (TCE) ratio grew by 10 basis points to7.72%
“During the quarter, we were pleased to see the anticipated expansion of our net interest margin as increases in loan yields began to outpace deposit cost pressures. We are encouraged by strong economic tailwinds across
Second Quarter 2024 Balance Sheet Highlights
Loans
-
Total loans held for investment, excluding mortgage warehouse purchase loans, were
at June 30, 2024 compared to$14.0 billion at March 31, 2024 and$14.1 billion at June 30, 2023. Loans held for investment, excluding mortgage warehouse purchase loans, decreased$13.6 billion , or$72.1 million 2.1% on an annualized basis, during second quarter 2024. -
Average mortgage warehouse purchase loans were
for the quarter ended June 30, 2024 compared to$538.5 million for the quarter ended March 31, 2024, and$455.7 million for the quarter ended June 30, 2023, an increase of$413.2 million , or$82.8 million 18.2% from the linked quarter and an increase of , or$125.3 million 30.3% year over year.
Asset Quality
-
Nonperforming assets totaled
, or$64.9 million 0.35% of total assets at June 30, 2024, compared to or$65.1 million 0.34% of total assets at March 31, 2024, and , or$60.5 million 0.32% of total assets at June 30, 2023. -
Nonperforming loans totaled
, or$56.1 million 0.40% of total loans held for investment at June 30, 2024, compared to , or$56.3 million 0.40% at March 31, 2024 and , or$37.9 million 0.28% at June 30, 2023. -
The decrease in nonperforming loans for the linked quarter was primarily due to
in charge-offs on one commercial relationship offset by individually insignificant net additions of nonperforming loans. The year over year period reflects$906 thousand in net additions primarily related to a$18.2 million commercial real estate loan added to nonaccrual in fourth quarter 2023 and a$13.0 million commercial relationship added in first quarter 2024.$2.0 million -
The changes in nonperforming assets for the linked quarter and prior year reflects the nonperforming loan changes discussed above. In addition, the prior year change also includes reductions of
in other real estate owned.$13.8 million -
Net charge-offs were
0.10% annualized in the second quarter 2024 compared to0.00% annualized in the linked quarter and (0.03)% annualized in the prior year quarter. The elevated level of charge-offs in second quarter 2024 was due primarily to the commercial relationship mentioned above as well as charge-offs totaling related to a single-family construction relationship.$2.6 million
Deposits, Borrowings and Liquidity
-
Total deposits were
at June 30, 2024 compared to$15.8 billion at March 31, 2024 and$15.7 billion at June 30, 2023.$14.9 billion -
Total borrowings (other than junior subordinated debentures) were
at June 30, 2024, a decrease of$427.1 million from March 31, 2024 and a decrease of$69.8 million from June 30, 2023. The linked quarter change reflects the payoff of a$753.1 million BTFP advance. The year over year change primarily reflects reductions of$70.0 million in short-term FHLB advances and$875.0 million in line of credit borrowings, offset by a$33.8 million BTFP advance taken in first quarter 2024.$155.0 million
Capital
-
The Company continues to be well capitalized under regulatory guidelines. At June 30, 2024, 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 were
9.69% ,8.76% ,10.03% and11.75% , respectively, compared to9.60% ,8.91% ,9.94% , and11.68% , respectively, at March 31, 2024 and9.78% ,8.92% ,10.13% , and11.95% , respectively at June 30, 2023.
Second Quarter 2024 Operating Results
Net Interest Income
-
Net interest income was
for second quarter 2024 compared to$105.1 million for second quarter 2023 and$113.6 million for first quarter 2024. The decrease from the prior year was primarily due to the increased funding costs on our deposit products, including brokered deposits due to the interest rate environment over the period offset to a lesser extent by increased earnings on average loan balances. The increase from the linked quarter was primarily due to increased earnings on loans offset to a lesser extent by increased deposit funding costs for the quarter. The second quarter 2024 includes$103.0 million in acquired loan accretion compared to$1.0 million in second quarter 2023 and$870 thousand in first quarter 2024.$753 thousand -
The average balance of total interest-earning assets grew by
and totaled$298.6 million for the quarter ended June 30, 2024 compared to$17.1 billion for the quarter ended June 30, 2023 and decreased minimally by$16.8 billion from$9.9 million for the quarter ended March 31, 2024. The increase from the prior year is primarily due to an increase in average loans of$17.1 billion due to organic growth primarily occurring in the second half of 2023 offset by decreases in average securities and interest-bearing cash balances.$608.0 million -
The yield on interest-earning assets was
5.62% for second quarter 2024 compared to5.14% for second quarter 2023 and5.53% for first quarter 2024. The increase in asset yield compared to the prior year and linked quarter is primarily a result of increases in the benchmark rates over the last year. The average loan yield, net of acquired loan accretion was6.00% for the current quarter, compared to5.51% for prior year quarter and5.91% for the linked quarter. -
The cost of interest-bearing liabilities, including borrowings, was
4.16% for second quarter 2024 compared to3.37% for second quarter 2023 and4.11% for first quarter 2024. The increase from the prior year is reflective of higher funding costs, primarily on deposit products as a result of Fed Funds rate increases in 2023 offset by decreased costs on FHLB advances, primarily due to lower holdings based on liquidity needs resulting in a shift in funding sources during the year-over-year period. The linked quarter change also reflects a slight increase in funding costs on deposits. Both period funding costs were negatively impacted by the shift from non-interest bearing deposits into interest-bearing products as well as an increase in higher cost brokered deposits for the respective periods. -
The net interest margin was
2.47% for second quarter 2024 compared to2.71% for second quarter 2023 and2.42% for first quarter 2024. The net interest margin excluding acquired loan accretion was2.45% for second quarter 2024 compared to2.69% for second quarter 2023 and2.40% for first quarter 2024. The decrease in net interest margin from the prior year was primarily due to the increased funding costs on deposits, offset by a reduction in funding costs on FHLB advances and higher earnings on loans due to organic growth and rate increases for the respective periods. The linked quarter change positively reflects the increased rates earned on fixed rate loans, which have reset at a faster pace than the offsetting increase in deposit funding costs for the quarter.
Noninterest Income
-
Total noninterest income decreased
compared to second quarter 2023 and increased$662 thousand compared to first quarter 2024.$563 thousand -
The decrease from the prior year quarter primarily reflects a
decrease in mortgage banking revenue due to lower volumes resulting from rate increases for the year over year period.$708 thousand -
The increase from the linked quarter primarily reflects a
increase in other noninterest income, comprised of net increases in various miscellaneous income streams.$469 thousand
Noninterest Expense
-
Total noninterest expense increased
compared to second quarter 2023 and increased$521.2 million compared to first quarter 2024. Adjusted noninterest expense (non-GAAP) increased$518.4 million compared to second quarter 2023 and$2.7 million compared to first quarter 2024. As previously explained, a goodwill impairment charge of$1.2 million was recognized in second quarter 2024, in addition to$518.0 million in merger-related expenses and a$2.3 million credit true-up to the additional FDIC special assessment accrued in first quarter 2024.$645 thousand - As a result of entering into a merger agreement with SouthState Corporation along with continued stock price volatility in the banking sector during the quarter, the Company determined such events triggered an interim goodwill assessment. As required by GAAP, the Company recorded impairment to goodwill as its estimated fair value of equity, which is equal to the implied valuation of the merger transaction based upon the conversion ratio to SouthState’s stock price, was less than book value as of June 30, 2024.
-
The increase in adjusted noninterest expense (non-GAAP) in second quarter 2024 compared to the prior year is due primarily to increases of
in salaries and benefits and$2.1 million in other noninterest expense offset by a$620 thousand decrease in professional fees.$484 thousand -
The increase from the linked quarter primarily reflects increases of
in salaries and benefits expense and$1.7 million in other noninterest expense offset by decreases of$820 thousand in FDIC assessment, as adjusted, and$586 thousand in professional fees.$508 thousand -
The increase in salaries and benefits from the prior year is due primarily to
higher combined salaries and bonus expenses compared to the prior year quarter offset by$2.9 million in lower contract labor costs and$386 thousand in lower employee insurance expenses. The linked quarter change reflects higher salaries, bonus and stock amortization expenses of$670 thousand due to a full quarter of salary increases and equity compensation expenses granted as part of the merit process that occurred in mid first quarter, offset by$3.1 million in lower employee insurance costs and$859 thousand lower payroll taxes, which are seasonably higher in the first quarter.$491 thousand - The decrease in professional fees from the prior year and linked quarter was primarily due to lower consulting fees due to less active projects and lower audit and tax-related expenses.
- The increase in other noninterest expense from the prior year and linked quarter was primarily due to operational losses related to increased check and debit card fraud. The decrease in adjusted FDIC assessment compared to the linked quarter was due to improvements in the quarterly assessment's liquidity stress rates.
Provision for Credit Losses
-
The Company recorded zero provision for credit losses for second quarter 2024, compared to provision expense of
for second quarter 2023 and provision reversal of$220 thousand for the linked quarter. Provision expense (reversal) during a given period is generally dependent on changes in various factors, including economic conditions, credit quality and past due trends, as well as loan growth or decline and charge-offs or specific credit loss allocations taken during the respective period.$3.2 million -
The allowance for credit losses on loans was
, or$145.3 million 1.04% of total loans held for investment, net of mortgage warehouse purchase loans, at June 30, 2024, compared to , or$147.8 million 1.08% at June 30, 2023 and compared to , or$148.4 million 1.06% at March 31, 2024. -
The allowance for credit losses on off-balance sheet exposures was
at June 30, 2024 compared to$3.5 million at June 30, 2023, compared to$4.9 million at March 31, 2024. 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.$4.1 million
Income Taxes
-
Federal income tax expense of
was recorded for the second quarter 2024, an effective rate of (1.0)% compared to federal tax expense of$5.1 million and an effective rate of$8.7 million 20.8% for the prior year quarter and income tax expense of and an effective rate of$6.5 million 21.2% for the linked quarter. The decrease in the effective tax rate from the linked quarter was predominately due to the goodwill impairment charge, of which is not deductible for tax purposes. Excluding the goodwill impairment and other non-deductible expenses, the estimated tax rate for the second quarter is$512.4 million 20.5% .
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 June 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 June 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
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
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.
Independent Bank Group, Inc. and Subsidiaries |
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Consolidated Financial Data |
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Three Months Ended June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023 and June 30, 2023 |
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(Dollars in thousands, except for share data) |
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(Unaudited) |
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As of and for the Quarter Ended |
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|
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
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Selected Income Statement Data |
|
|
|
|
|
|
|
|
|
|||||||
Interest income |
$ |
239,085 |
|
|
$ |
235,205 |
|
|
$ |
232,522 |
|
$ |
222,744 |
|
$ |
215,294 |
Interest expense |
|
133,937 |
|
|
|
132,174 |
|
|
|
126,217 |
|
|
113,695 |
|
|
101,687 |
Net interest income |
|
105,148 |
|
|
|
103,031 |
|
|
|
106,305 |
|
|
109,049 |
|
|
113,607 |
Provision for credit losses |
|
— |
|
|
|
(3,200 |
) |
|
|
3,480 |
|
|
340 |
|
|
220 |
Net interest income after provision for credit losses |
|
105,148 |
|
|
|
106,231 |
|
|
|
102,825 |
|
|
108,709 |
|
|
113,387 |
Noninterest income |
|
13,433 |
|
|
|
12,870 |
|
|
|
10,614 |
|
|
13,646 |
|
|
14,095 |
Noninterest expense |
|
606,911 |
|
|
|
88,473 |
|
|
|
95,125 |
|
|
81,334 |
|
|
85,705 |
Income tax expense |
|
5,125 |
|
|
|
6,478 |
|
|
|
3,455 |
|
|
8,246 |
|
|
8,700 |
Net (loss) income |
|
(493,455 |
) |
|
|
24,150 |
|
|
|
14,859 |
|
|
32,775 |
|
|
33,077 |
Adjusted net income (1) |
|
24,884 |
|
|
|
26,001 |
|
|
|
25,509 |
|
|
32,624 |
|
|
33,726 |
|
|
|
|
|
|
|
|
|
|
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Per Share Data (Common Stock) |
|
|
|
|
|
|
|
|
|
|||||||
Earnings (loss): |
|
|
|
|
|
|
|
|
|
|||||||
Basic |
$ |
(11.93 |
) |
|
$ |
0.58 |
|
|
$ |
0.36 |
|
$ |
0.79 |
|
$ |
0.80 |
Diluted |
|
(11.89 |
) |
|
|
0.58 |
|
|
|
0.36 |
|
|
0.79 |
|
|
0.80 |
Adjusted earnings: |
|
|
|
|
|
|
|
|
|
|||||||
Basic (1) |
|
0.60 |
|
|
|
0.63 |
|
|
|
0.62 |
|
|
0.79 |
|
|
0.82 |
Diluted (1) |
|
0.60 |
|
|
|
0.63 |
|
|
|
0.62 |
|
|
0.79 |
|
|
0.82 |
Dividends |
|
0.38 |
|
|
|
0.38 |
|
|
|
0.38 |
|
|
0.38 |
|
|
0.38 |
Book value |
|
45.85 |
|
|
|
58.02 |
|
|
|
58.20 |
|
|
56.49 |
|
|
57.00 |
Tangible book value (1) |
|
33.27 |
|
|
|
32.85 |
|
|
|
32.90 |
|
|
31.11 |
|
|
31.55 |
Common shares outstanding |
|
41,376,169 |
|
|
|
41,377,745 |
|
|
|
41,281,919 |
|
|
41,284,003 |
|
|
41,279,460 |
Weighted average basic shares outstanding (2) |
|
41,377,917 |
|
|
|
41,322,744 |
|
|
|
41,283,041 |
|
|
41,284,964 |
|
|
41,280,312 |
Weighted average diluted shares outstanding (2) |
|
41,488,442 |
|
|
|
41,432,042 |
|
|
|
41,388,564 |
|
|
41,381,034 |
|
|
41,365,275 |
|
|
|
|
|
|
|
|
|
|
|||||||
Selected Period End Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|||||||
Total assets |
$ |
18,359,162 |
|
|
$ |
18,871,452 |
|
|
$ |
19,035,102 |
|
$ |
18,519,872 |
|
$ |
18,719,802 |
Cash and cash equivalents |
|
770,749 |
|
|
|
729,998 |
|
|
|
721,989 |
|
|
711,709 |
|
|
902,882 |
Securities available for sale |
|
1,494,470 |
|
|
|
1,543,247 |
|
|
|
1,593,751 |
|
|
1,545,904 |
|
|
1,637,682 |
Securities held to maturity |
|
204,319 |
|
|
|
204,776 |
|
|
|
205,232 |
|
|
205,689 |
|
|
206,146 |
Loans, held for sale |
|
12,012 |
|
|
|
21,299 |
|
|
|
16,420 |
|
|
18,068 |
|
|
18,624 |
Loans, held for investment (3) |
|
13,988,169 |
|
|
|
14,059,277 |
|
|
|
14,160,853 |
|
|
13,781,102 |
|
|
13,628,025 |
Mortgage warehouse purchase loans |
|
633,654 |
|
|
|
554,616 |
|
|
|
549,689 |
|
|
442,302 |
|
|
491,090 |
Allowance for credit losses on loans |
|
145,323 |
|
|
|
148,437 |
|
|
|
151,861 |
|
|
148,249 |
|
|
147,804 |
Goodwill and other intangible assets |
|
520,553 |
|
|
|
1,041,506 |
|
|
|
1,044,581 |
|
|
1,047,687 |
|
|
1,050,798 |
Other real estate owned |
|
8,685 |
|
|
|
8,685 |
|
|
|
9,490 |
|
|
22,505 |
|
|
22,505 |
Noninterest-bearing deposits |
|
3,378,493 |
|
|
|
3,300,773 |
|
|
|
3,530,704 |
|
|
3,703,784 |
|
|
3,905,492 |
Interest-bearing deposits |
|
12,464,183 |
|
|
|
12,370,942 |
|
|
|
12,192,331 |
|
|
11,637,185 |
|
|
10,968,014 |
Borrowings (other than junior subordinated debentures) |
|
427,129 |
|
|
|
496,975 |
|
|
|
621,821 |
|
|
546,666 |
|
|
1,180,262 |
Junior subordinated debentures |
|
54,717 |
|
|
|
54,667 |
|
|
|
54,617 |
|
|
54,568 |
|
|
54,518 |
Total stockholders' equity |
|
1,897,083 |
|
|
|
2,400,807 |
|
|
|
2,402,593 |
|
|
2,332,098 |
|
|
2,353,042 |
Independent Bank Group, Inc. and Subsidiaries |
||||||||||||||
Consolidated Financial Data |
||||||||||||||
Three Months Ended June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023 and June 30, 2023 |
||||||||||||||
(Dollars in thousands, except for share data) |
||||||||||||||
(Unaudited) |
||||||||||||||
|
As of and for the Quarter Ended |
|||||||||||||
|
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
|||||
Selected Performance Metrics |
|
|
|
|
|
|
|
|
|
|||||
Return on average assets |
(10.55 |
)% |
|
0.51 |
% |
|
0.31 |
% |
|
0.70 |
% |
|
0.71 |
% |
Return on average equity |
(87.53 |
) |
|
4.05 |
|
|
2.51 |
|
|
5.51 |
|
|
5.62 |
|
Return on tangible equity (4) |
(146.65 |
) |
|
7.16 |
|
|
4.54 |
|
|
9.92 |
|
|
10.14 |
|
Adjusted return on average assets (1) |
0.53 |
|
|
0.55 |
|
|
0.54 |
|
|
0.70 |
|
|
0.73 |
|
Adjusted return on average equity (1) |
4.41 |
|
|
4.36 |
|
|
4.32 |
|
|
5.48 |
|
|
5.73 |
|
Adjusted return on tangible equity (1) (4) |
7.40 |
|
|
7.71 |
|
|
7.79 |
|
|
9.87 |
|
|
10.34 |
|
Net interest margin |
2.47 |
|
|
2.42 |
|
|
2.49 |
|
|
2.60 |
|
|
2.71 |
|
Efficiency ratio (5) |
509.32 |
|
|
73.68 |
|
|
78.70 |
|
|
63.75 |
|
|
64.68 |
|
Adjusted efficiency ratio (1) (5) |
71.09 |
|
|
71.63 |
|
|
67.96 |
|
|
63.84 |
|
|
63.93 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Credit Quality Ratios (3) (6) |
|
|
|
|
|
|
|
|
|
|||||
Nonperforming assets to total assets |
0.35 |
% |
|
0.34 |
% |
|
0.32 |
% |
|
0.33 |
% |
|
0.32 |
% |
Nonperforming loans to total loans held for investment |
0.40 |
|
|
0.40 |
|
|
0.37 |
|
|
0.28 |
|
|
0.28 |
|
Nonperforming assets to total loans held for investment and other real estate |
0.46 |
|
|
0.46 |
|
|
0.43 |
|
|
0.44 |
|
|
0.44 |
|
Allowance for credit losses on loans to nonperforming loans |
258.83 |
|
|
263.85 |
|
|
293.17 |
|
|
385.81 |
|
|
389.84 |
|
Allowance for credit losses to total loans held for investment |
1.04 |
|
|
1.06 |
|
|
1.07 |
|
|
1.08 |
|
|
1.08 |
|
Net charge-offs (recoveries) to average loans outstanding (annualized) |
0.10 |
|
|
— |
|
|
0.01 |
|
|
0.01 |
|
|
(0.03 |
) |
|
|
|
|
|
|
|
|
|
|
|||||
Capital Ratios |
|
|
|
|
|
|
|
|
|
|||||
Estimated common equity Tier 1 capital to risk-weighted assets |
9.69 |
% |
|
9.60 |
% |
|
9.58 |
% |
|
9.86 |
% |
|
9.78 |
% |
Estimated tier 1 capital to average assets |
8.76 |
|
|
8.91 |
|
|
8.94 |
|
|
9.09 |
|
|
8.92 |
|
Estimated tier 1 capital to risk-weighted assets |
10.03 |
|
|
9.94 |
|
|
9.93 |
|
|
10.21 |
|
|
10.13 |
|
Estimated total capital to risk-weighted assets |
11.75 |
|
|
11.68 |
|
|
11.57 |
|
|
11.89 |
|
|
11.95 |
|
Total stockholders' equity to total assets |
10.33 |
|
|
12.72 |
|
|
12.62 |
|
|
12.59 |
|
|
12.57 |
|
Tangible common equity to tangible assets (1) |
7.72 |
|
|
7.62 |
|
|
7.55 |
|
|
7.35 |
|
|
7.37 |
|
____________ |
||||||||||||||
(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 |
Independent Bank Group, Inc. and Subsidiaries |
||||||||||||||||
Consolidated Statements of Income (Loss) |
||||||||||||||||
Three and Six Months Ended June 30, 2024 and 2023 |
||||||||||||||||
(Dollars in thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Interest income: |
|
|
|
|
|
|
|
|
||||||||
Interest and fees on loans |
|
$ |
219,291 |
|
|
$ |
193,612 |
|
|
$ |
434,802 |
|
|
$ |
377,906 |
|
Interest on taxable securities |
|
|
8,032 |
|
|
|
7,791 |
|
|
|
15,677 |
|
|
|
15,649 |
|
Interest on nontaxable securities |
|
|
2,524 |
|
|
|
2,586 |
|
|
|
5,042 |
|
|
|
5,189 |
|
Interest on interest-bearing deposits and other |
|
|
9,238 |
|
|
|
11,305 |
|
|
|
18,769 |
|
|
|
17,726 |
|
Total interest income |
|
|
239,085 |
|
|
|
215,294 |
|
|
|
474,290 |
|
|
|
416,470 |
|
Interest expense: |
|
|
|
|
|
|
|
|
||||||||
Interest on deposits |
|
|
125,248 |
|
|
|
78,144 |
|
|
|
247,758 |
|
|
|
140,405 |
|
Interest on FHLB advances |
|
|
1,750 |
|
|
|
18,025 |
|
|
|
4,605 |
|
|
|
23,849 |
|
Interest on other borrowings |
|
|
5,716 |
|
|
|
4,361 |
|
|
|
11,298 |
|
|
|
8,440 |
|
Interest on junior subordinated debentures |
|
|
1,223 |
|
|
|
1,157 |
|
|
|
2,450 |
|
|
|
2,247 |
|
Total interest expense |
|
|
133,937 |
|
|
|
101,687 |
|
|
|
266,111 |
|
|
|
174,941 |
|
Net interest income |
|
|
105,148 |
|
|
|
113,607 |
|
|
|
208,179 |
|
|
|
241,529 |
|
Provision for credit losses |
|
|
— |
|
|
|
220 |
|
|
|
(3,200 |
) |
|
|
310 |
|
Net interest income after provision for credit losses |
|
|
105,148 |
|
|
|
113,387 |
|
|
|
211,379 |
|
|
|
241,219 |
|
Noninterest income: |
|
|
|
|
|
|
|
|
||||||||
Service charges on deposit accounts |
|
|
3,586 |
|
|
|
3,519 |
|
|
|
7,186 |
|
|
|
6,868 |
|
Investment management fees |
|
|
2,813 |
|
|
|
2,444 |
|
|
|
5,457 |
|
|
|
4,745 |
|
Mortgage banking revenue |
|
|
1,540 |
|
|
|
2,248 |
|
|
|
3,175 |
|
|
|
3,872 |
|
Mortgage warehouse purchase program fees |
|
|
655 |
|
|
|
535 |
|
|
|
1,195 |
|
|
|
859 |
|
(Loss) gain on sale of loans |
|
|
— |
|
|
|
(7 |
) |
|
|
74 |
|
|
|
(7 |
) |
Gain on sale of other real estate |
|
|
— |
|
|
|
— |
|
|
|
13 |
|
|
|
— |
|
(Loss) gain on sale and disposal of premises and equipment |
|
|
(11 |
) |
|
|
354 |
|
|
|
(11 |
) |
|
|
401 |
|
Increase in cash surrender value of BOLI |
|
|
1,572 |
|
|
|
1,410 |
|
|
|
3,127 |
|
|
|
2,787 |
|
Other |
|
|
3,278 |
|
|
|
3,592 |
|
|
|
6,087 |
|
|
|
7,324 |
|
Total noninterest income |
|
|
13,433 |
|
|
|
14,095 |
|
|
|
26,303 |
|
|
|
26,849 |
|
Noninterest expense: |
|
|
|
|
|
|
|
|
||||||||
Salaries and employee benefits |
|
|
49,060 |
|
|
|
46,940 |
|
|
|
96,393 |
|
|
|
93,215 |
|
Occupancy |
|
|
12,076 |
|
|
|
11,640 |
|
|
|
24,625 |
|
|
|
23,199 |
|
Communications and technology |
|
|
7,676 |
|
|
|
7,196 |
|
|
|
15,361 |
|
|
|
14,286 |
|
FDIC assessment |
|
|
2,816 |
|
|
|
3,806 |
|
|
|
8,958 |
|
|
|
6,518 |
|
Advertising and public relations |
|
|
853 |
|
|
|
1,004 |
|
|
|
1,268 |
|
|
|
1,608 |
|
Other real estate owned (income) expenses, net |
|
|
(37 |
) |
|
|
(185 |
) |
|
|
28 |
|
|
|
(229 |
) |
Impairment of other real estate |
|
|
— |
|
|
|
1,000 |
|
|
|
345 |
|
|
|
2,200 |
|
Amortization of other intangible assets |
|
|
2,953 |
|
|
|
3,111 |
|
|
|
6,028 |
|
|
|
6,222 |
|
Litigation settlement |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
102,500 |
|
Professional fees |
|
|
1,301 |
|
|
|
1,785 |
|
|
|
3,110 |
|
|
|
4,850 |
|
Acquisition expense, including legal |
|
|
2,338 |
|
|
|
— |
|
|
|
2,338 |
|
|
|
— |
|
Goodwill impairment |
|
|
518,000 |
|
|
|
— |
|
|
|
518,000 |
|
|
|
— |
|
Other |
|
|
9,875 |
|
|
|
9,408 |
|
|
|
18,930 |
|
|
|
20,716 |
|
Total noninterest expense |
|
|
606,911 |
|
|
|
85,705 |
|
|
|
695,384 |
|
|
|
275,085 |
|
(Loss) income before taxes |
|
|
(488,330 |
) |
|
|
41,777 |
|
|
|
(457,702 |
) |
|
|
(7,017 |
) |
Income tax expense (benefit) |
|
|
5,125 |
|
|
|
8,700 |
|
|
|
11,603 |
|
|
|
(2,584 |
) |
Net (loss) income |
|
$ |
(493,455 |
) |
|
$ |
33,077 |
|
|
$ |
(469,305 |
) |
|
$ |
(4,433 |
) |
Independent Bank Group, Inc. and Subsidiaries |
|||||||
Consolidated Balance Sheets |
|||||||
As of June 30, 2024 and December 31, 2023 |
|||||||
(Dollars in thousands) |
|||||||
(Unaudited) |
|||||||
|
June 30, |
|
December 31, |
||||
Assets |
|
2024 |
|
|
|
2023 |
|
Cash and due from banks |
$ |
93,978 |
|
|
$ |
98,396 |
|
Interest-bearing deposits in other banks |
|
676,771 |
|
|
|
623,593 |
|
Cash and cash equivalents |
|
770,749 |
|
|
|
721,989 |
|
Certificates of deposit held in other banks |
|
248 |
|
|
|
248 |
|
Securities available for sale, at fair value |
|
1,494,470 |
|
|
|
1,593,751 |
|
Securities held to maturity, net of allowance for credit losses of |
|
204,319 |
|
|
|
205,232 |
|
Loans held for sale (includes |
|
12,012 |
|
|
|
16,420 |
|
Loans, net of allowance for credit losses of |
|
14,476,500 |
|
|
|
14,558,681 |
|
Premises and equipment, net |
|
351,694 |
|
|
|
355,833 |
|
Other real estate owned |
|
8,685 |
|
|
|
9,490 |
|
Federal Home Loan Bank (FHLB) of |
|
14,253 |
|
|
|
34,915 |
|
Bank-owned life insurance (BOLI) |
|
248,624 |
|
|
|
245,497 |
|
Deferred tax asset |
|
84,769 |
|
|
|
92,665 |
|
Goodwill |
|
476,021 |
|
|
|
994,021 |
|
Other intangible assets, net |
|
44,532 |
|
|
|
50,560 |
|
Other assets |
|
172,286 |
|
|
|
155,800 |
|
Total assets |
$ |
18,359,162 |
|
|
$ |
19,035,102 |
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity |
|
|
|
||||
Deposits: |
|
|
|
||||
Noninterest-bearing |
$ |
3,378,493 |
|
|
$ |
3,530,704 |
|
Interest-bearing |
|
12,464,183 |
|
|
|
12,192,331 |
|
Total deposits |
|
15,842,676 |
|
|
|
15,723,035 |
|
FHLB advances |
|
— |
|
|
|
350,000 |
|
Other borrowings |
|
427,129 |
|
|
|
271,821 |
|
Junior subordinated debentures |
|
54,717 |
|
|
|
54,617 |
|
Other liabilities |
|
137,557 |
|
|
|
233,036 |
|
Total liabilities |
|
16,462,079 |
|
|
|
16,632,509 |
|
Commitments and contingencies |
|
— |
|
|
|
— |
|
Stockholders’ equity: |
|
|
|
||||
Preferred stock (0 and 0 shares outstanding, respectively) |
|
— |
|
|
|
— |
|
Common stock (41,376,169 and 41,281,919 shares outstanding, respectively) |
|
414 |
|
|
|
413 |
|
Additional paid-in capital |
|
1,972,019 |
|
|
|
1,966,686 |
|
Retained earnings |
|
114,763 |
|
|
|
616,724 |
|
Accumulated other comprehensive loss |
|
(190,113 |
) |
|
|
(181,230 |
) |
Total stockholders’ equity |
|
1,897,083 |
|
|
|
2,402,593 |
|
Total liabilities and stockholders’ equity |
$ |
18,359,162 |
|
|
$ |
19,035,102 |
|
Independent Bank Group, Inc. and Subsidiaries |
||||||||||||||||||
Consolidated Average Balance Sheet Amounts, Interest Earned and Yield Analysis |
||||||||||||||||||
Three Months Ended June 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 June 30, |
||||||||||||||||
|
|
2024 |
|
2023 |
||||||||||||||
|
|
Average
|
|
Interest |
|
Yield/Rate (4) |
|
Average
|
|
Interest |
|
Yield/Rate (4) |
||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loans (1) |
|
$ |
14,635,773 |
|
$ |
219,291 |
|
6.03 |
% |
|
$ |
14,027,773 |
|
$ |
193,612 |
|
5.54 |
% |
Taxable securities |
|
|
1,385,384 |
|
|
8,032 |
|
2.33 |
|
|
|
1,456,873 |
|
|
7,791 |
|
2.14 |
|
Nontaxable securities |
|
|
392,178 |
|
|
2,524 |
|
2.59 |
|
|
|
418,575 |
|
|
2,586 |
|
2.48 |
|
Interest-bearing deposits and other |
|
|
682,216 |
|
|
9,238 |
|
5.45 |
|
|
|
893,752 |
|
|
11,305 |
|
5.07 |
|
Total interest-earning assets |
|
|
17,095,551 |
|
|
239,085 |
|
5.62 |
|
|
|
16,796,973 |
|
|
215,294 |
|
5.14 |
|
Noninterest-earning assets |
|
|
1,708,326 |
|
|
|
|
|
|
1,855,477 |
|
|
|
|
||||
Total assets |
|
$ |
18,803,877 |
|
|
|
|
|
$ |
18,652,450 |
|
|
|
|
||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Checking accounts |
|
$ |
5,446,233 |
|
$ |
49,661 |
|
3.67 |
% |
|
$ |
5,646,603 |
|
$ |
41,943 |
|
2.98 |
% |
Savings accounts |
|
|
514,419 |
|
|
225 |
|
0.18 |
|
|
|
638,292 |
|
|
83 |
|
0.05 |
|
Money market accounts |
|
|
2,020,883 |
|
|
21,072 |
|
4.19 |
|
|
|
1,421,920 |
|
|
11,012 |
|
3.11 |
|
Certificates of deposit |
|
|
4,349,560 |
|
|
54,290 |
|
5.02 |
|
|
|
2,614,849 |
|
|
25,106 |
|
3.85 |
|
Total deposits |
|
|
12,331,095 |
|
|
125,248 |
|
4.09 |
|
|
|
10,321,664 |
|
|
78,144 |
|
3.04 |
|
FHLB advances |
|
|
128,571 |
|
|
1,750 |
|
5.47 |
|
|
|
1,412,637 |
|
|
18,025 |
|
5.12 |
|
Other borrowings - short-term |
|
|
200,243 |
|
|
2,646 |
|
5.31 |
|
|
|
74,643 |
|
|
1,291 |
|
6.94 |
|
Other borrowings - long-term |
|
|
238,325 |
|
|
3,070 |
|
5.18 |
|
|
|
237,708 |
|
|
3,070 |
|
5.18 |
|
Junior subordinated debentures |
|
|
54,699 |
|
|
1,223 |
|
8.99 |
|
|
|
54,501 |
|
|
1,157 |
|
8.51 |
|
Total interest-bearing liabilities |
|
|
12,952,933 |
|
|
133,937 |
|
4.16 |
|
|
|
12,101,153 |
|
|
101,687 |
|
3.37 |
|
Noninterest-bearing demand accounts |
|
|
3,334,724 |
|
|
|
|
|
|
3,979,818 |
|
|
|
|
||||
Noninterest-bearing liabilities |
|
|
248,931 |
|
|
|
|
|
|
211,253 |
|
|
|
|
||||
Stockholders’ equity |
|
|
2,267,289 |
|
|
|
|
|
|
2,360,226 |
|
|
|
|
||||
Total liabilities and equity |
|
$ |
18,803,877 |
|
|
|
|
|
$ |
18,652,450 |
|
|
|
|
||||
Net interest income |
|
|
|
$ |
105,148 |
|
|
|
|
|
$ |
113,607 |
|
|
||||
Interest rate spread |
|
|
|
|
|
1.46 |
% |
|
|
|
|
|
1.77 |
% |
||||
Net interest margin (2) |
|
|
|
|
|
2.47 |
|
|
|
|
|
|
2.71 |
|
||||
Net interest income and margin (tax equivalent basis) (3) |
|
|
|
$ |
106,223 |
|
2.50 |
|
|
|
|
$ |
114,642 |
|
2.74 |
|
||
Average interest-earning assets to interest-bearing liabilities |
|
|
|
|
|
131.98 |
|
|
|
|
|
|
138.80 |
|
||||
____________ |
||||||||||||||||||
(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. |
Independent Bank Group, Inc. and Subsidiaries |
||||||||||||||||||
Consolidated Average Balance Sheet Amounts, Interest Earned and Yield Analysis |
||||||||||||||||||
Six Months Ended June 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. |
||||||||||||||||||
|
|
Six Months Ended June 30, |
||||||||||||||||
|
|
2024 |
|
2023 |
|
|||||||||||||
|
|
Average
|
|
Interest |
|
Yield/Rate |
|
Average
|
|
Interest |
|
Yield/Rate |
||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loans (1) |
|
$ |
14,624,693 |
|
$ |
434,802 |
|
5.98 |
% |
|
$ |
13,980,015 |
|
$ |
377,906 |
|
5.45 |
% |
Taxable securities |
|
|
1,388,098 |
|
|
15,677 |
|
2.27 |
|
|
|
1,460,902 |
|
|
15,649 |
|
2.16 |
|
Nontaxable securities |
|
|
395,246 |
|
|
5,042 |
|
2.57 |
|
|
|
421,052 |
|
|
5,189 |
|
2.49 |
|
Interest-bearing deposits and other |
|
|
692,441 |
|
|
18,769 |
|
5.45 |
|
|
|
723,305 |
|
|
17,726 |
|
4.94 |
|
Total interest-earning assets |
|
|
17,100,478 |
|
|
474,290 |
|
5.58 |
|
|
|
16,585,274 |
|
|
416,470 |
|
5.06 |
|
Noninterest-earning assets |
|
|
1,770,464 |
|
|
|
|
|
|
1,856,383 |
|
|
|
|
||||
Total assets |
|
$ |
18,870,942 |
|
|
|
|
|
$ |
18,441,657 |
|
|
|
|
||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Checking accounts |
|
$ |
5,497,080 |
|
$ |
99,560 |
|
3.64 |
% |
|
$ |
5,958,145 |
|
$ |
80,836 |
|
2.74 |
% |
Savings accounts |
|
|
523,952 |
|
|
389 |
|
0.15 |
|
|
|
683,321 |
|
|
173 |
|
0.05 |
|
Money market accounts |
|
|
1,945,055 |
|
|
40,525 |
|
4.19 |
|
|
|
1,598,603 |
|
|
23,446 |
|
2.96 |
|
Certificates of deposit |
|
|
4,320,318 |
|
|
107,284 |
|
4.99 |
|
|
|
2,115,827 |
|
|
35,950 |
|
3.43 |
|
Total deposits |
|
|
12,286,405 |
|
|
247,758 |
|
4.06 |
|
|
|
10,355,896 |
|
|
140,405 |
|
2.73 |
|
FHLB advances |
|
|
168,681 |
|
|
4,605 |
|
5.49 |
|
|
|
997,099 |
|
|
23,849 |
|
4.82 |
|
Other borrowings - short-term |
|
|
193,170 |
|
|
5,158 |
|
5.37 |
|
|
|
39,743 |
|
|
1,344 |
|
6.82 |
|
Other borrowings - long-term |
|
|
238,248 |
|
|
6,140 |
|
5.18 |
|
|
|
252,034 |
|
|
7,096 |
|
5.68 |
|
Junior subordinated debentures |
|
|
54,674 |
|
|
2,450 |
|
9.01 |
|
|
|
54,476 |
|
|
2,247 |
|
8.32 |
|
Total interest-bearing liabilities |
|
|
12,941,178 |
|
|
266,111 |
|
4.14 |
|
|
|
11,699,248 |
|
|
174,941 |
|
3.02 |
|
Noninterest-bearing demand accounts |
|
|
3,351,407 |
|
|
|
|
|
|
4,191,141 |
|
|
|
|
||||
Noninterest-bearing liabilities |
|
|
245,426 |
|
|
|
|
|
|
181,000 |
|
|
|
|
||||
Stockholders’ equity |
|
|
2,332,931 |
|
|
|
|
|
|
2,370,268 |
|
|
|
|
||||
Total liabilities and equity |
|
$ |
18,870,942 |
|
|
|
|
|
$ |
18,441,657 |
|
|
|
|
||||
Net interest income |
|
|
|
$ |
208,179 |
|
|
|
|
|
$ |
241,529 |
|
|
||||
Interest rate spread |
|
|
|
|
|
1.44 |
% |
|
|
|
|
|
2.04 |
% |
||||
Net interest margin (2) |
|
|
|
|
|
2.45 |
|
|
|
|
|
|
2.94 |
|
||||
Net interest income and margin (tax equivalent basis) (3) |
|
|
|
$ |
210,330 |
|
2.47 |
|
|
|
|
$ |
243,604 |
|
2.96 |
|
||
Average interest-earning assets to interest-bearing liabilities |
|
|
|
|
|
132.14 |
|
|
|
|
|
|
141.76 |
|
||||
____________ |
||||||||||||||||||
(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 |
Independent Bank Group, Inc. and Subsidiaries |
||||||||||||||
Loan Portfolio Composition |
||||||||||||||
As of June 30, 2024 and December 31, 2023 |
||||||||||||||
(Dollars in thousands) |
||||||||||||||
(Unaudited) |
||||||||||||||
Total Loans By Class |
|
|
|
|
||||||||||
|
|
June 30, 2024 |
|
December 31, 2023 |
||||||||||
|
|
Amount |
|
% of Total |
|
Amount |
|
% of Total |
||||||
Commercial |
|
$ |
2,152,792 |
|
|
14.7 |
% |
|
$ |
2,266,851 |
|
|
15.4 |
% |
Mortgage warehouse purchase loans |
|
|
633,654 |
|
|
4.3 |
|
|
|
549,689 |
|
|
3.7 |
|
Real estate: |
|
|
|
|
|
|
|
|
||||||
Commercial real estate |
|
|
8,406,528 |
|
|
57.5 |
|
|
|
8,289,124 |
|
|
56.3 |
|
Commercial construction, land and land development |
|
|
1,131,384 |
|
|
7.7 |
|
|
|
1,231,484 |
|
|
8.4 |
|
Residential real estate (1) |
|
|
1,699,220 |
|
|
11.6 |
|
|
|
1,686,206 |
|
|
11.5 |
|
Single-family interim construction |
|
|
427,678 |
|
|
2.9 |
|
|
|
517,928 |
|
|
3.5 |
|
Agricultural |
|
|
110,416 |
|
|
0.8 |
|
|
|
109,451 |
|
|
0.7 |
|
Consumer |
|
|
72,163 |
|
|
0.5 |
|
|
|
76,229 |
|
|
0.5 |
|
Total loans |
|
|
14,633,835 |
|
|
100.0 |
% |
|
|
14,726,962 |
|
|
100.0 |
% |
Allowance for credit losses |
|
|
(145,323 |
) |
|
|
|
|
(151,861 |
) |
|
|
||
Total loans, net |
|
$ |
14,488,512 |
|
|
|
|
$ |
14,575,101 |
|
|
|
||
____________ |
||||||||||||||
(1) Includes loans held for sale of |
Independent Bank Group, Inc. and Subsidiaries |
||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures |
||||||||||||||||||||
Three Months Ended June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023 and June 30, 2023 |
||||||||||||||||||||
(Dollars in thousands, except for share data) |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
|
|
For the Three Months Ended |
||||||||||||||||||
|
|
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
||||||||||
ADJUSTED NET INCOME |
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Interest Income - Reported |
(a) |
$ |
105,148 |
|
|
$ |
103,031 |
|
|
$ |
106,305 |
|
|
$ |
109,049 |
|
|
$ |
113,607 |
|
Provision for Credit Losses - Reported |
(b) |
|
— |
|
|
|
(3,200 |
) |
|
|
3,480 |
|
|
|
340 |
|
|
|
220 |
|
Noninterest Income - Reported |
(c) |
|
13,433 |
|
|
|
12,870 |
|
|
|
10,614 |
|
|
|
13,646 |
|
|
|
14,095 |
|
(Gain) loss on sale of loans |
|
|
— |
|
|
|
(74 |
) |
|
|
— |
|
|
|
7 |
|
|
|
7 |
|
(Gain) loss on sale of other real estate |
|
|
— |
|
|
|
(13 |
) |
|
|
1,797 |
|
|
|
— |
|
|
|
— |
|
Loss (gain) on sale and disposal of premises and equipment |
|
|
11 |
|
|
|
— |
|
|
|
22 |
|
|
|
56 |
|
|
|
(354 |
) |
Recoveries on loans charged off prior to acquisition |
|
|
(57 |
) |
|
|
(5 |
) |
|
|
(64 |
) |
|
|
(279 |
) |
|
|
(13 |
) |
Adjusted Noninterest Income |
(d) |
|
13,387 |
|
|
|
12,778 |
|
|
|
12,369 |
|
|
|
13,430 |
|
|
|
13,735 |
|
Noninterest Expense - Reported |
(e) |
|
606,911 |
|
|
|
88,473 |
|
|
|
95,125 |
|
|
|
81,334 |
|
|
|
85,705 |
|
OREO impairment |
|
|
— |
|
|
|
(345 |
) |
|
|
(3,015 |
) |
|
|
— |
|
|
|
(1,000 |
) |
FDIC special assessment |
|
|
645 |
|
|
|
(2,095 |
) |
|
|
(8,329 |
) |
|
|
— |
|
|
|
— |
|
Goodwill and asset impairment |
|
|
(518,000 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(153 |
) |
Acquisition expense (1) |
|
|
(2,338 |
) |
|
|
— |
|
|
|
(27 |
) |
|
|
(27 |
) |
|
|
(27 |
) |
Adjusted Noninterest Expense |
(f) |
|
87,218 |
|
|
|
86,033 |
|
|
|
83,754 |
|
|
|
81,307 |
|
|
|
84,525 |
|
Income Tax Expense - Reported |
(g) |
|
5,125 |
|
|
|
6,478 |
|
|
|
3,455 |
|
|
|
8,246 |
|
|
|
8,700 |
|
Net (Loss) Income - Reported |
(a) - (b) + (c) - (e) - (g) = (h) |
|
(493,455 |
) |
|
|
24,150 |
|
|
|
14,859 |
|
|
|
32,775 |
|
|
|
33,077 |
|
Adjusted Net Income (2) |
(a) - (b) + (d) - (f) = (i) |
$ |
24,884 |
|
|
$ |
26,001 |
|
|
$ |
25,509 |
|
|
$ |
32,624 |
|
|
$ |
33,726 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
ADJUSTED PROFITABILITY (3) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Average Assets |
(j) |
$ |
18,803,877 |
|
|
$ |
18,938,008 |
|
|
$ |
18,815,342 |
|
|
$ |
18,520,600 |
|
|
$ |
18,652,450 |
|
Total Average Stockholders' Equity |
(k) |
|
2,267,289 |
|
|
|
2,398,573 |
|
|
|
2,344,652 |
|
|
|
2,360,175 |
|
|
|
2,360,226 |
|
Total Average Tangible Stockholders' Equity (4) |
(l) |
|
1,353,313 |
|
|
|
1,356,042 |
|
|
|
1,299,026 |
|
|
|
1,311,417 |
|
|
|
1,308,368 |
|
Reported Return on Average Assets |
(h) / (j) |
|
(10.55 |
)% |
|
|
0.51 |
% |
|
|
0.31 |
% |
|
|
0.70 |
% |
|
|
0.71 |
% |
Reported Return on Average Equity |
(h) / (k) |
|
(87.53 |
) |
|
|
4.05 |
|
|
|
2.51 |
|
|
|
5.51 |
|
|
|
5.62 |
|
Reported Return on Average Tangible Equity |
(h) / (l) |
|
(146.65 |
) |
|
|
7.16 |
|
|
|
4.54 |
|
|
|
9.92 |
|
|
|
10.14 |
|
Adjusted Return on Average Assets (5) |
(i) / (j) |
|
0.53 |
|
|
|
0.55 |
|
|
|
0.54 |
|
|
|
0.70 |
|
|
|
0.73 |
|
Adjusted Return on Average Equity (5) |
(i) / (k) |
|
4.41 |
|
|
|
4.36 |
|
|
|
4.32 |
|
|
|
5.48 |
|
|
|
5.73 |
|
Adjusted Return on Tangible Equity (5) |
(i) / (l) |
|
7.40 |
|
|
|
7.71 |
|
|
|
7.79 |
|
|
|
9.87 |
|
|
|
10.34 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
EFFICIENCY RATIO |
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortization of other intangible assets |
(m) |
$ |
2,953 |
|
|
$ |
3,075 |
|
|
$ |
3,106 |
|
|
$ |
3,111 |
|
|
$ |
3,111 |
|
Reported Efficiency Ratio |
(e - m) / (a + c) |
|
509.32 |
% |
|
|
73.68 |
% |
|
|
78.70 |
% |
|
|
63.75 |
% |
|
|
64.68 |
% |
Adjusted Efficiency Ratio |
(f - m) / (a + d) |
|
71.09 |
|
|
|
71.63 |
|
|
|
67.96 |
|
|
|
63.84 |
|
|
|
63.93 |
|
____________ |
||||||||||||||||||||
(1) Prior to 2024, acquisition expenses include compensation related expenses for equity awards granted at acquisition. Second quarter 2024 includes merger-related expenses related to the announced merger with SouthState Corporation. |
||||||||||||||||||||
(2) Assumes an adjusted effective tax rate of |
||||||||||||||||||||
(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 June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023 and June 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 |
||||||||||||||||||
|
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
||||||||||
Tangible Common Equity |
|
|
|
|
|
|
|
|
|
||||||||||
Total common stockholders' equity |
$ |
1,897,083 |
|
|
$ |
2,400,807 |
|
|
$ |
2,402,593 |
|
|
$ |
2,332,098 |
|
|
$ |
2,353,042 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
||||||||||
Goodwill |
|
(476,021 |
) |
|
|
(994,021 |
) |
|
|
(994,021 |
) |
|
|
(994,021 |
) |
|
|
(994,021 |
) |
Other intangible assets, net |
|
(44,532 |
) |
|
|
(47,485 |
) |
|
|
(50,560 |
) |
|
|
(53,666 |
) |
|
|
(56,777 |
) |
Tangible common equity |
$ |
1,376,530 |
|
|
$ |
1,359,301 |
|
|
$ |
1,358,012 |
|
|
$ |
1,284,411 |
|
|
$ |
1,302,244 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tangible Assets |
|
|
|
|
|
|
|
|
|
||||||||||
Total assets |
$ |
18,359,162 |
|
|
$ |
18,871,452 |
|
|
$ |
19,035,102 |
|
|
$ |
18,519,872 |
|
|
$ |
18,719,802 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
||||||||||
Goodwill |
|
(476,021 |
) |
|
|
(994,021 |
) |
|
|
(994,021 |
) |
|
|
(994,021 |
) |
|
|
(994,021 |
) |
Other intangible assets, net |
|
(44,532 |
) |
|
|
(47,485 |
) |
|
|
(50,560 |
) |
|
|
(53,666 |
) |
|
|
(56,777 |
) |
Tangible assets |
$ |
17,838,609 |
|
|
$ |
17,829,946 |
|
|
$ |
17,990,521 |
|
|
$ |
17,472,185 |
|
|
$ |
17,669,004 |
|
Common shares outstanding |
|
41,376,169 |
|
|
|
41,377,745 |
|
|
|
41,281,919 |
|
|
|
41,284,003 |
|
|
|
41,279,460 |
|
Tangible common equity to tangible assets |
|
7.72 |
% |
|
|
7.62 |
% |
|
|
7.55 |
% |
|
|
7.35 |
% |
|
|
7.37 |
% |
Book value per common share |
$ |
45.85 |
|
|
$ |
58.02 |
|
|
$ |
58.20 |
|
|
$ |
56.49 |
|
|
$ |
57.00 |
|
Tangible book value per common share |
|
33.27 |
|
|
|
32.85 |
|
|
|
32.90 |
|
|
|
31.11 |
|
|
|
31.55 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240724185557/en/
Analysts/Investors:
Paul Langdale
Executive Vice President, Chief Financial Officer
(972) 562-9004
Paul.Langdale@ifinancial.com
Media:
Wendi Costlow
Executive Vice President, Chief Marketing Officer
(972) 562-9004
Wendi.Costlow@ifinancial.com
Source: Independent Bank Group, Inc.
FAQ
What was Independent Bank Group's (IBTX) net income for Q2 2024?
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