Independent Bank Group, Inc. (NASDAQ:IBTX), the holding company for
Independent Bank, today announced net income available to common
shareholders of $11.8 million, or $0.64 per diluted share, for the
quarter ended June 30, 2016 compared to $10.5 million, or $0.61 per
diluted share, for the quarter ended June 30, 2015 and $12.4
million, or $0.67 per diluted share, for the quarter ended March
31, 2016.
Highlights
- Core earnings were $13.8 million, or $0.74 per diluted share,
compared to $12.4 million, or $0.67 per diluted share, for first
quarter 2016, representing an increase of 10.5%
- Annualized organic loan growth of 11.8% for the quarter and
13.2% year to date
- Credit quality metrics improved to historically low
levels
- Significant paydowns in the energy portfolio reducing it to
2.9% of the total loan portfolio at quarter end
- Completed $45 million subordinated debt offering enhancing the
Company's capital position
Independent Bank Group Chairman and Chief Executive Officer
David Brooks said, "This was another quarter of improved operating
performance for our Company. Continued solid loan growth and
improved credit metrics drove strong core earnings. We also
strengthened our capital position with our recent issuance of
subordinated debt. We believe that this quarter's results
reflect our commitment to stronger earnings and enhancement of
shareholder value."
Second Quarter 2016 Operating Results
Net Interest Income
- Net interest income was $45.9 million for second quarter 2016
compared to $37.8 million for second quarter 2015 and $45.7 million
for first quarter 2016. Net interest income increased compared to
the linked quarter due to continued organic loan growth and despite
significantly lower accretion income compared to first quarter
2016. The increase in net interest income from the previous year
was primarily due to increased average loan balances resulting from
organic loan growth as well as loans acquired in the Grand Bank
acquisition in November 2015.
- The yield on interest-earning assets was 4.49% for second
quarter 2016 compared to 4.64% for second quarter 2015 and 4.60%
for first quarter 2016. The first quarter 2016 included unusually
high accretion income of $1.3 million compared to only $265
thousand during second quarter 2016. In addition during first
quarter 2016, $182 thousand in interest income was recognized
resulting from the payoff of a nonaccrual loan as well as the
collection of a $160 thousand extension fee on an energy credit
that also increased the yield compared to the second quarter.
The decrease in the rate from prior year is primarily due to
decreased market rates over the year and also due in part to lower
accretion income on acquired loans in the second quarter 2016
compared to the same period in 2015.
- The cost of interest bearing liabilities, including borrowings,
was 0.66% for second quarter 2016 compared to 0.69% for second
quarter 2015 and 0.65% for first quarter 2016. The decrease
from the prior year is primarily due to the maturities of higher
rate FHLB advances during 2015. The slight increase from the
linked quarter is due to increased money market and CD costs.
- The net interest margin was 3.96% for second quarter 2016
compared to 4.10% for second quarter 2015 and 4.08% for first
quarter 2016. The core margin, which excludes purchased loan
accretion, was 3.94% for second quarter 2016 compared to 4.04% for
second quarter 2015 and 3.96% for first quarter 2016.
- The average balance of total interest-earning assets grew by
$960.8 million and totaled $4.7 billion at June 30, 2016 compared
to $3.7 billion at June 30, 2015 and grew by $155.8 million
compared to $4.5 billion at March 31, 2016. This increase
from prior year and the linked quarter is due to organic growth
while the change from prior year is also due to loans acquired in
the Grand Bank acquisition.
Noninterest Income
- Total noninterest income increased $820 thousand compared to
second quarter 2015 and increased $459 thousand compared to first
quarter 2016.
- The increase from the prior year reflects an increase of $592
thousand in mortgage fee income and a $275 thousand increase in
other noninterest income. The increase in mortgage fee income
is due to a decrease in mortgage rates and increased home purchase
activity in the Dallas and Austin markets. The increase in
other noninterest income from the prior year is primarily related
to an increase in earning credits on correspondent accounts.
- The increase from the linked quarter primarily relates to an
increase of $645 thousand in mortgage fee income offset by a
decrease of $184 thousand in other noninterest income. The
increase in mortgage fee income is explained above and the decrease
in other noninterest expense is primarily due to a decrease of $291
thousand in income distributions from small business investment
funds offset by an increase of $102 thousand in earning credits on
correspondent accounts for the respective periods.
Noninterest Expense
- Total noninterest expense increased $6.6 million compared to
second quarter 2015 and $2.5 million compared to first quarter
2016.
- The increase in noninterest expense compared to second quarter
2015 is due primarily to an increase of $4.9 million in salaries
and benefits expense in addition to increases of $537 thousand in
data processing expenses, $376 thousand in FDIC assessment, $300
thousand in professional fees and $303 thousand in other
noninterest expense. Overall increases in noninterest expense
from the prior year are generally due to the increase in number of
employees and operating costs resulting from the Grand Bank
transaction. The increase in salaries and benefits from the
prior year is also due to compensation costs of approximately $2.6
million recognized during the second quarter relating to the
Company's senior leadership restructure including $2 million for
the former Houston Region CEO's Separation Agreement which was
previously disclosed. The increase in professional fees is
primarily due to increased legal fees on existing litigation
inherited in the Bank of Houston transaction and legal fees related
to energy loan workouts.
- The increase from the linked quarter is primarily related to
increases of $2.8 million in salaries and benefits and $317
thousand in professional fees offset by a decrease of $549 thousand
in acquisition fees. Salaries and benefits increased
primarily due to the executive team restructure as discussed
above. Professional fees increased during second quarter 2016
primarily because legal expenses related to the energy portfolio
and the existing Bank of Houston litigation.
Conversion-related acquisition expenses were lower in the second
quarter as most of the expenses related to the November 2015
acquisition of Grand Bank were recognized in the first quarter of
2016.
Provision for Loan Losses
- Provision for loan loss expense was $2.1 million for the second
quarter 2016, an increase of $464 thousand compared to $1.7 million
for second quarter 2015 and decrease of $874 thousand compared to
$3.0 million for the first quarter 2016. The provision expense for
second quarter 2016 was based upon loan growth and net charge-offs
for the quarter. It was lower compared to first quarter 2016
because it does not include a general provision to reflect
potential risk in the energy portfolio that was made for this
purpose in first quarter 2016. The provision expense is
higher compared to second quarter 2015 due to higher organic loan
growth experienced during second quarter 2016.
- The allowance for loan losses was $30.9 million, or 0.73% of
total loans, at June 30, 2016, compared to $21.8 million, or 0.64%
of total loans at June 30, 2015, and compared to $30.0 million, or
0.73% of total loans, at March 31, 2016. The maintenance of the
allowance at the same percentage of total loans compared to first
quarter 2016 reflects the improved credit metrics in the energy
portfolio as well as the significant reduction in the total energy
portfolio. The increase in the allowance from the prior year
is due to additions to general reserves for organic loan growth,
specific allocations on impaired assets, as well as an increase in
general reserves for the energy portfolio. As of June 30, 2016, the
total energy related allowance to the total energy portfolio was
6.8%.
Income Taxes
- Federal income tax expense of $5.9 million was recorded for the
quarter ended June 30, 2016, an effective rate of 33.2%, compared
to tax expense of $5.2 million and an effective rate of 33.0% for
the quarter ended June 30, 2015 and tax expense of $6.2 million and
an effective rate of 33.1% for the quarter ended March 31,
2016.
Second Quarter 2016 Balance Sheet
Highlights:
Loans
- Total loans held for investment were $4.251 billion at June 30,
2016 compared to $4.130 billion at March 31, 2016 and to $3.376
billion at June 30, 2015. This represented total loan growth
of $121.0 million for the quarter, or 11.8% on an annualized basis.
Loans have grown 13.2%, annualized, from December 31, 2015.
- Energy outstandings at the end of second quarter were $122.1
million (2.9% of total loans) versus $185.9 million at first
quarter 2016, a reduction of 34.3%. The production portfolio,
consisting of working interest and royalty credits, was $108.9
million (2.6% of total loans) made up of 21 credits and 20
relationships. Oil field service related loans represented an
additional $13.2 million (0.3% of loans) and consisted of 25
borrowers. As of June 30, 2016, there were four nonperforming
classified energy credits with balances totaling $11.7 million and
three performing classified energy credits with a balance of $20.5
million. All energy related credits continue to be closely
monitored and the Company is in close contact with borrowers to
maintain a real time understanding of their current financial
condition.
Asset Quality
- Total nonperforming assets decreased to $18.7 million, or 0.34%
of total assets at June 30, 2016 from $32.7 million, or 0.62% of
total assets at March 31, 2016 and increased slightly from $16.3
million, or 0.37% of total assets at June 30, 2015.
- Total nonperforming loans decreased to $17.2 million, or 0.40%
of total loans at June 30, 2016 compared to $29.9 million, or 0.72%
of total loans at March 31, 2016 and increased from $13.3 million,
or 0.40% of total loans at June 30, 2015.
- The decrease in nonperforming assets and nonperforming loans
from the linked quarter is primarily due to the pay-off of a $17.1
million energy loan participation that had been placed on
nonaccrual during the first quarter 2016.
- Charge-offs were 0.11% annualized in the second quarter 2016
compared to 0.01% annualized in the linked and prior year
quarters. The increase in charge-offs for the current quarter
is primarily due a $925 thousand charge-off related to the $17.1
million energy loan discussed above, which was paid off at a
discount during the second quarter 2016.
Deposits and Borrowings
- Total deposits were $4.208 billion at June 30, 2016 compared to
$4.172 billion at March 31, 2016 and compared to $3.467 billion at
June 30, 2015.
- Total borrowings (other than junior subordinated debentures)
were $578.2 million at June 30, 2016, an increase of $133.4 million
from March 31, 2016 and an increase of $306.7 million from June 30,
2015. These changes reflect the issuance of $43.4 million,
net of discount and costs, of our 5.875% subordinated debentures
issued in second quarter 2016 with the remainder resulting from the
use of short term FHLB advances during the applicable periods.
Capital
- The tangible common equity to tangible assets and the Tier 1
capital to average assets ratios were 6.88% and 7.42% (estimated),
respectively, at June 30, 2016 compared to 6.86% and 7.36%,
respectively, at March 31, 2016 and 7.11% and 8.40%, respectively,
at June 30, 2015. The total stockholders’ equity to total
assets ratio was 11.56%, 11.71% and 12.79% at June 30, 2016, March
31, 2016 and June 30, 2015, respectively. Total capital to
risk weighted assets was 11.35% at June 30, 2016 (estimated)
compared to 10.47% at March 31, 2016 and 12.05% at June 30,
2015. The respective changes in capital ratios from the
previous year and the linked quarter is primarily due to the
redemption of the SBLF preferred stock in January 2016 and the
issuance of $45 million subordinated debentures in June 2016.
- Book value and tangible book value per common share were $34.08
and $19.28, respectively, at June 30, 2016 compared to $33.38 and
$18.54, respectively, at March 31, 2016 and $31.30 and $17.18,
respectively, at June 30, 2015.
- Return on tangible equity (on an annualized basis) was 13.52%
for the second quarter 2016 compared to 14.57% and 14.48% for the
first quarter 2016 and second quarter 2015, respectively.
- Return on average assets and return on average equity (on an
annualized basis) were 0.88% and 7.60%, respectively, for second
quarter 2016 compared to 0.95% and 8.10%, respectively, for first
quarter 2016 and 0.99% and 7.91%, respectively, for second quarter
2015. Ratios for the second quarter 2016 were negatively
impacted by $2.6 million in additional compensation costs related
to the senior leadership changes during the second quarter
2016.
About Independent Bank
Group
Independent Bank Group, through its wholly owned subsidiary,
Independent Bank, provides a wide range of relationship-driven
commercial banking products and services tailored to meet the needs
of businesses, professionals and individuals. Independent Bank
Group operates 42 banking offices in three market regions located
in the Dallas/Fort Worth, Austin and Houston, Texas areas.
Conference Call
A conference call covering Independent Bank Group’s second
quarter earnings announcement will be held on Tuesday, July 26,
2016 at 8:30 a.m. (EDT) and can be accessed by calling
1-877-303-7611 and by identifying the conference ID number
46069669. A recording of the conference call will be available from
July 26, 2016 through August 2, 2016 by accessing our website,
www.ibtx.com.
Forward-Looking Statements
The numbers as of and for the quarter ended June 30, 2016 are
unaudited. From time to time, our comments and releases may contain
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995 (the “Act”).
Forward-looking statements can be identified by words such as
“believes,” “anticipates,” “expects,” “forecast,” “guidance,”
“intends,” “targeted,” “continue,” “remain,” “should,” “may,”
“plans,” “estimates,” “will,” “will continue,” “will remain,”
variations on such words or phrases, or similar references to
future occurrences or events in future periods; however, such words
are not the exclusive means of identifying such statements.
Examples of forward-looking statements include, but are not limited
to: (i) projections of revenues, expenses, income or loss, earnings
or loss per share, and other financial items; (ii) statements of
plans, objectives, and expectations of Independent Bank Group or
its management or Board of Directors; (iii) statements of future
economic performance; and (iv) statements of assumptions underlying
such statements. Forward-looking statements are based on
Independent Bank Group’s current expectations and assumptions
regarding its business, the economy, and other future conditions.
Because forward-looking statements relate to the future, they are
subject to inherent uncertainties, risks, and changes in
circumstances that are difficult to predict. Independent Bank
Group’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. Factors that could cause actual results to
differ from those discussed in the forward-looking statements
include, but are not limited to: (1) local, regional, national, and
international economic conditions and the impact they may have on
us and our customers and our assessment of that impact; (2)
volatility and disruption in national and international financial
markets; (3) government intervention in the U.S. financial system,
whether through changes in the discount rate or money supply or
otherwise; (4) changes in the level of nonperforming assets and
charge-offs; (5) changes in estimates of future reserve
requirements based upon the periodic review thereof under relevant
regulatory and accounting requirements; (6) adverse conditions in
the securities markets that lead to impairment in the value of
securities in our investment portfolio; (7) inflation, deflation,
changes in market interest rates, developments in the securities
market, and monetary fluctuations; (8) the timely development and
acceptance of new products and services and perceived overall value
of these products and services by customers; (9) changes in
consumer spending, borrowings, and savings habits; (10)
technological changes; (11) the ability to increase market share
and control expenses; (12) changes in the competitive environment
among banks, bank holding companies, and other financial service
providers; (13) the effect of changes in laws and regulations
(including laws and regulations concerning taxes, banking,
securities, and insurance) with which we and our subsidiaries must
comply; (14) the effect of changes in accounting policies and
practices, as may be adopted by the regulatory agencies, as well as
the Public Company Accounting Oversight Board, the Financial
Accounting Standards Board, and other accounting standard setters;
(15) the costs and effects of legal and regulatory developments
including the resolution of legal proceedings; and (16) our success
at managing the risks involved in the foregoing items and (17) the
other factors that are described in the Company’s Quarterly Report
on Form 10-Q for the quarter ended March 31, 2016, the Annual
Report on Form 10-K filed on February 25, 2016, or the Prospectus
Supplement filed pursuant to Rule 424(b)(5) on June 23, 2016, under
the heading “Risk Factors”, and other reports and statements filed
by the Company with the SEC. Any forward-looking statement made by
the Company in this release speaks only as of the date on which it
is made. Factors or events that could cause the Company’s actual
results to differ may emerge from time to time, and it is not
possible for the Company to predict all of them. The Company
undertakes no obligation to publicly update any forward-looking
statement, whether as a result of new information, future
developments or otherwise, except as may be required by law.
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 “core earnings”, “tangible book value”,
“tangible book value per common share”, “core efficiency ratio”,
“Tier 1 capital to average assets”, “Tier 1 capital to risk
weighted assets”, “tangible common equity to tangible assets”, “net
interest margin excluding purchase accounting accretion”, "return
on tangible equity", “adjusted return on average assets” and
“adjusted return on average equity” and are supplemental measures
that are not required by, or are not presented in accordance with,
accounting principles generally accepted in the United States. We
consider the use of select non-GAAP financial measures and ratios
to be useful for financial operational decision making and useful
in evaluating period-to-period comparisons. We believe that these
non-GAAP financial measures provide meaningful supplemental
information regarding our performance by excluding certain
expenditures or assets that we believe are not indicative of our
primary business operating results. We believe that management and
investors benefit from referring to these non- GAAP financial
measures in assessing our performance and when planning,
forecasting, analyzing and comparing past, present and future
periods.
We believe that these measures provide useful information to
management and investors that is supplementary to our financial
condition, results of operations and cash flows computed in
accordance with GAAP; however we acknowledge that our financial
measures have a number of limitations relative to GAAP financial
measures. Certain non-GAAP financial measures exclude items of
income, expenditures, expenses, assets, or liabilities, including
provisions for loan losses and the effect of goodwill, core deposit
intangibles 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 SubsidiariesConsolidated
Financial DataThree Months Ended June 30, 2016, March 31, 2016,
December 31, 2015, September 30, 2015, and June 30, 2015(Dollars in
thousands, except for share data)(Unaudited)
|
|
|
As of and for the quarter ended |
|
June 30, 2016 |
|
March 31, 2016 |
|
December 31, 2015 |
|
September 30, 2015 |
|
June 30, 2015 |
Selected Income
Statement Data |
|
|
|
|
|
|
|
|
|
Interest income |
$ |
51,941 |
|
|
$ |
51,464 |
|
|
$ |
47,414 |
|
|
$ |
43,130 |
|
|
$ |
42,747 |
|
Interest expense |
6,058 |
|
|
5,804 |
|
|
5,263 |
|
|
5,041 |
|
|
4,967 |
|
Net
interest income |
45,883 |
|
|
45,660 |
|
|
42,151 |
|
|
38,089 |
|
|
37,780 |
|
Provision for loan
losses |
2,123 |
|
|
2,997 |
|
|
1,970 |
|
|
3,932 |
|
|
1,659 |
|
Net
interest income after provision for loan losses |
43,760 |
|
|
42,663 |
|
|
40,181 |
|
|
34,157 |
|
|
36,121 |
|
Noninterest income |
4,929 |
|
|
4,470 |
|
|
4,254 |
|
|
3,799 |
|
|
4,109 |
|
Noninterest
expense |
31,023 |
|
|
28,519 |
|
|
28,527 |
|
|
25,830 |
|
|
24,455 |
|
Income tax expense |
5,857 |
|
|
6,162 |
|
|
5,347 |
|
|
3,924 |
|
|
5,204 |
|
Net
income |
11,809 |
|
|
12,452 |
|
|
10,561 |
|
|
8,202 |
|
|
10,571 |
|
Preferred stock
dividends |
— |
|
|
|
8 |
|
|
|
60 |
|
|
|
60 |
|
|
|
60 |
|
Net
income available to common shareholders |
11,809 |
|
|
12,444 |
|
|
10,501 |
|
|
8,142 |
|
|
10,511 |
|
Core net interest
income (1) |
45,618 |
|
|
44,327 |
|
|
41,635 |
|
|
38,001 |
|
|
37,225 |
|
Core Pre-Tax
Pre-Provision Earnings (1) |
22,713 |
|
|
21,590 |
|
|
18,875 |
|
|
17,123 |
|
|
17,379 |
|
Core Earnings (1) |
13,764 |
|
|
12,438 |
|
|
11,377 |
|
|
8,917 |
|
|
10,532 |
|
|
|
|
|
|
|
|
|
|
|
Per Share Data
(Common Stock) |
|
|
|
|
|
|
|
|
|
Earnings: |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.64 |
|
|
$ |
0.67 |
|
|
$ |
0.58 |
|
|
$ |
0.48 |
|
|
$ |
0.61 |
|
Diluted |
0.64 |
|
|
0.67 |
|
|
0.58 |
|
|
0.47 |
|
|
0.61 |
|
Core earnings: |
|
|
|
|
|
|
|
|
|
Basic
(1) |
0.75 |
|
|
0.67 |
|
|
0.63 |
|
|
0.52 |
|
|
0.62 |
|
Diluted
(1) |
0.74 |
|
|
0.67 |
|
|
0.63 |
|
|
0.52 |
|
|
0.61 |
|
Dividends |
0.08 |
|
|
0.08 |
|
|
0.08 |
|
|
0.08 |
|
|
0.08 |
|
Book value |
34.08 |
|
|
33.38 |
|
|
32.79 |
|
|
31.81 |
|
|
31.30 |
|
Tangible book
value (1) |
19.28 |
|
|
18.54 |
|
|
17.85 |
|
|
17.72 |
|
|
17.18 |
|
Common shares
outstanding |
18,475,978 |
|
|
18,461,480 |
|
|
18,399,194 |
|
|
17,111,394 |
|
|
17,108,394 |
|
Weighted average basic
shares outstanding (4) |
18,469,182 |
|
|
18,444,284 |
|
|
17,965,055 |
|
|
17,110,090 |
|
|
17,111,958 |
|
Weighted average
diluted shares outstanding (4) |
18,547,074 |
|
|
18,528,031 |
|
|
18,047,960 |
|
|
17,199,281 |
|
|
17,198,981 |
|
|
|
|
|
|
|
|
|
|
|
Selected Period
End Balance Sheet Data |
|
|
|
|
|
|
|
|
|
Total assets |
$ |
5,446,797 |
|
|
$ |
5,261,967 |
|
|
$ |
5,055,000 |
|
|
$ |
4,478,339 |
|
|
$ |
4,375,727 |
|
Cash and cash
equivalents |
436,605 |
|
|
356,526 |
|
|
293,279 |
|
|
353,950 |
|
|
424,196 |
|
Securities available
for sale |
287,976 |
|
|
302,650 |
|
|
273,463 |
|
|
200,188 |
|
|
180,465 |
|
Loans, held for
sale |
13,942 |
|
|
8,515 |
|
|
12,299 |
|
|
6,218 |
|
|
7,237 |
|
Loans, held for
investment |
4,251,457 |
|
|
4,130,496 |
|
|
3,989,405 |
|
|
3,529,275 |
|
|
3,375,553 |
|
Allowance for loan
losses |
30,916 |
|
|
29,984 |
|
|
27,043 |
|
|
25,088 |
|
|
21,764 |
|
Goodwill and core
deposit intangible |
273,480 |
|
|
273,972 |
|
|
275,000 |
|
|
241,171 |
|
|
241,534 |
|
Other real estate
owned |
1,567 |
|
|
1,745 |
|
|
2,168 |
|
|
2,323 |
|
|
2,958 |
|
Noninterest-bearing
deposits |
1,107,620 |
|
|
1,070,611 |
|
|
1,071,656 |
|
|
884,272 |
|
|
886,087 |
|
Interest-bearing
deposits |
3,100,785 |
|
|
3,101,341 |
|
|
2,956,623 |
|
|
2,649,768 |
|
|
2,581,397 |
|
Borrowings (other than
junior subordinated debentures) |
578,169 |
|
|
444,745 |
|
|
371,283 |
|
|
334,485 |
|
|
271,504 |
|
Junior subordinated
debentures |
18,147 |
|
|
18,147 |
|
|
18,147 |
|
|
18,147 |
|
|
18,147 |
|
Series A Preferred
Stock |
— |
|
|
— |
|
|
23,938 |
|
|
23,938 |
|
|
23,938 |
|
Total stockholders'
equity |
629,628 |
|
|
616,258 |
|
|
603,371 |
|
|
568,257 |
|
|
559,447 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent Bank Group, Inc. and SubsidiariesConsolidated
Financial DataThree Months Ended June 30, 2016, March 31, 2016,
December 31, 2015, September 30, 2015, and June 30, 2015(Dollars in
thousands, except for share data)(Unaudited)
|
|
|
As of and for the quarter ended |
|
June 30, 2016 |
|
March 31, 2016 |
|
December 31, 2015 |
|
September 30, 2015 |
|
June 30, 2015 |
Selected
Performance Metrics |
|
|
|
|
|
|
|
|
|
Return on average
assets |
0.88 |
% |
|
0.95 |
% |
|
0.86 |
% |
|
0.76 |
% |
|
0.99 |
% |
Return on average
equity (2) |
7.60 |
|
|
8.10 |
|
|
7.28 |
|
|
5.96 |
|
|
7.91 |
|
Return on tangible
equity (2) (5) |
13.52 |
|
|
14.57 |
|
|
13.37 |
|
|
10.75 |
|
|
14.48 |
|
Adjusted return on
average assets (1) |
1.03 |
|
|
0.95 |
|
|
0.93 |
|
|
0.83 |
|
|
0.99 |
|
Adjusted return on
average equity (1) (2) |
8.86 |
|
|
8.09 |
|
|
7.89 |
|
|
6.53 |
|
|
7.93 |
|
Adjusted return on
tangible equity (1) (2) (5) |
15.76 |
|
|
14.57 |
|
|
14.49 |
|
|
11.77 |
|
|
14.51 |
|
Net interest
margin |
3.96 |
|
|
4.08 |
|
|
3.96 |
|
|
4.08 |
|
|
4.10 |
|
Adjusted net interest
margin (3) |
3.94 |
|
|
3.96 |
|
|
3.91 |
|
|
4.07 |
|
|
4.04 |
|
Efficiency ratio |
61.05 |
|
|
56.89 |
|
|
61.47 |
|
|
61.66 |
|
|
58.38 |
|
Core efficiency ratio
(1) |
55.05 |
|
|
55.68 |
|
|
58.75 |
|
|
59.25 |
|
|
57.81 |
|
|
|
|
|
|
|
|
|
|
|
Credit Quality
Ratios |
|
|
|
|
|
|
|
|
|
Nonperforming assets to
total assets |
0.34 |
% |
|
0.62 |
% |
|
0.36 |
% |
|
0.34 |
% |
|
0.37 |
% |
Nonperforming loans to
total loans |
0.40 |
|
|
0.72 |
|
|
0.37 |
|
|
0.33 |
|
|
0.40 |
|
Nonperforming assets to
total loans and other real estate |
0.44 |
|
|
0.79 |
|
|
0.45 |
|
|
0.43 |
|
|
0.48 |
|
Allowance for loan
losses to non-performing loans |
179.97 |
|
|
100.35 |
|
|
181.99 |
|
|
214.21 |
|
|
163.12 |
|
Allowance for loan
losses to total loans |
0.73 |
|
|
0.73 |
|
|
0.68 |
|
|
0.71 |
|
|
0.64 |
|
Net charge-offs to
average loans outstanding (annualized) |
0.11 |
|
|
0.01 |
|
|
— |
|
|
0.07 |
|
|
0.01 |
|
|
|
|
|
|
|
|
|
|
|
Capital
Ratios |
|
|
|
|
|
|
|
|
|
Estimated common equity
tier 1 capital to risk-weighted assets (1) |
7.89 |
% |
|
7.92 |
% |
|
7.94 |
% |
|
8.26 |
% |
|
8.33 |
% |
Estimated tier 1
capital to average assets |
7.42 |
|
|
7.36 |
|
|
8.28 |
|
|
8.67 |
|
|
8.40 |
|
Estimated tier 1
capital to risk-weighted assets (1) |
8.27 |
|
|
8.32 |
|
|
8.92 |
|
|
9.37 |
|
|
9.49 |
|
Estimated total capital
to risk-weighted assets |
11.35 |
|
|
10.47 |
|
|
11.14 |
|
|
11.86 |
|
|
12.05 |
|
Total stockholders'
equity to total assets |
11.56 |
|
|
11.71 |
|
|
11.94 |
|
|
12.69 |
|
|
12.79 |
|
Tangible common equity
to tangible assets (1) |
6.88 |
|
|
6.86 |
|
|
6.87 |
|
|
7.15 |
|
|
7.11 |
|
|
|
|
|
|
|
|
|
|
|
(1)
Non-GAAP financial measures. See reconciliation. |
(2)
Excludes average balance of Series A preferred stock. |
(3)
Excludes income recognized on acquired loans of $265, $1,333, $516,
$88, and $555, respectively. |
(4) Total
number of shares includes participating shares (those with dividend
rights). |
(5)
Excludes average balance of goodwill and net core deposit
intangibles. |
|
|
Independent Bank Group, Inc. and SubsidiariesConsolidated
Statements of IncomeThree and Six Months Ended June 30, 2016 and
2015(Dollars in thousands)(Unaudited)
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Interest
income: |
|
|
|
|
|
|
|
|
Interest
and fees on loans |
|
$ |
50,418 |
|
|
$ |
41,625 |
|
|
$ |
100,328 |
|
|
$ |
81,205 |
|
Interest
on taxable securities |
|
764 |
|
|
551 |
|
|
1,494 |
|
|
1,160 |
|
Interest
on nontaxable securities |
|
444 |
|
|
449 |
|
|
895 |
|
|
863 |
|
Interest
on federal funds sold and other |
|
315 |
|
|
122 |
|
|
688 |
|
|
255 |
|
Total interest
income |
|
51,941 |
|
|
42,747 |
|
|
103,405 |
|
|
83,483 |
|
Interest
expense: |
|
|
|
|
|
|
|
|
Interest
on deposits |
|
3,923 |
|
|
3,018 |
|
|
7,574 |
|
|
5,727 |
|
Interest
on FHLB advances |
|
998 |
|
|
718 |
|
|
1,999 |
|
|
1,470 |
|
Interest
on repurchase agreements and other borrowings |
|
987 |
|
|
1,096 |
|
|
1,990 |
|
|
2,165 |
|
Interest
on junior subordinated debentures |
|
150 |
|
|
135 |
|
|
299 |
|
|
263 |
|
Total interest
expense |
|
6,058 |
|
|
4,967 |
|
|
11,862 |
|
|
9,625 |
|
Net interest
income |
|
45,883 |
|
|
37,780 |
|
|
91,543 |
|
|
73,858 |
|
Provision
for loan losses |
|
2,123 |
|
|
1,659 |
|
|
5,120 |
|
|
3,329 |
|
Net interest
income after provision for loan losses |
|
43,760 |
|
|
36,121 |
|
|
86,423 |
|
|
70,529 |
|
Noninterest
income: |
|
|
|
|
|
|
|
|
Service
charges on deposit accounts |
|
1,752 |
|
|
1,679 |
|
|
3,447 |
|
|
3,264 |
|
Mortgage
fee income |
|
2,021 |
|
|
1,429 |
|
|
3,397 |
|
|
2,729 |
|
Gain on
sale of other real estate |
|
10 |
|
|
49 |
|
|
53 |
|
|
179 |
|
Gain on
sale of securities available for sale |
|
4 |
|
|
90 |
|
|
4 |
|
|
90 |
|
Gain on
sale of premises and equipment |
|
3 |
|
|
— |
|
|
41 |
|
|
— |
|
Increase
in cash surrender value of BOLI |
|
270 |
|
|
268 |
|
|
535 |
|
|
538 |
|
Other |
|
869 |
|
|
594 |
|
|
1,922 |
|
|
1,275 |
|
Total
noninterest income |
|
4,929 |
|
|
4,109 |
|
|
9,399 |
|
|
8,075 |
|
Noninterest
expense: |
|
|
|
|
|
|
|
|
Salaries
and employee benefits |
|
19,567 |
|
|
14,650 |
|
|
36,341 |
|
|
29,074 |
|
Occupancy |
|
4,041 |
|
|
4,027 |
|
|
8,081 |
|
|
7,937 |
|
Data
processing |
|
1,203 |
|
|
666 |
|
|
2,385 |
|
|
1,354 |
|
FDIC
assessment |
|
869 |
|
|
493 |
|
|
1,595 |
|
|
1,012 |
|
Advertising and public relations |
|
251 |
|
|
253 |
|
|
546 |
|
|
599 |
|
Communications |
|
550 |
|
|
554 |
|
|
1,085 |
|
|
1,093 |
|
Net other
real estate owned expenses (including taxes) |
|
2 |
|
|
37 |
|
|
35 |
|
|
96 |
|
Other
real estate impairment |
|
— |
|
|
25 |
|
|
55 |
|
|
25 |
|
Core
deposit intangible amortization |
|
492 |
|
|
367 |
|
|
980 |
|
|
739 |
|
Professional fees |
|
977 |
|
|
677 |
|
|
1,637 |
|
|
1,167 |
|
Acquisition expense, including legal |
|
90 |
|
|
28 |
|
|
729 |
|
|
500 |
|
Other |
|
2,981 |
|
|
2,678 |
|
|
6,073 |
|
|
5,245 |
|
Total
noninterest expense |
|
31,023 |
|
|
24,455 |
|
|
59,542 |
|
|
48,841 |
|
Income before
taxes |
|
17,666 |
|
|
15,775 |
|
|
$ |
36,280 |
|
|
$ |
29,763 |
|
Income
tax expense |
|
5,857 |
|
|
5,204 |
|
|
$ |
12,019 |
|
|
$ |
9,740 |
|
Net
income |
|
$ |
11,809 |
|
|
$ |
10,571 |
|
|
$ |
24,261 |
|
|
$ |
20,023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Balance SheetsAs of June 30, 2016 and December 31,
2015(Dollars in thousands, except share information)(Unaudited)
|
|
|
|
|
June 30, |
|
December 31, |
Assets |
2016 |
|
2015 |
Cash and due from
banks |
$ |
153,975 |
|
|
$ |
129,096 |
|
Interest-bearing
deposits in other banks |
282,630 |
|
|
164,183 |
|
Cash and cash equivalents |
436,605 |
|
|
293,279 |
|
Certificates of deposit
held in other banks |
12,886 |
|
|
61,746 |
|
Securities available
for sale |
287,976 |
|
|
273,463 |
|
Loans held for
sale |
13,942 |
|
|
12,299 |
|
Loans, net of allowance
for loan losses |
4,218,549 |
|
|
3,960,809 |
|
Premises and equipment,
net |
93,151 |
|
|
93,015 |
|
Other real estate
owned |
1,567 |
|
|
2,168 |
|
Federal Home Loan Bank
(FHLB) of Dallas stock and other restricted stock |
26,379 |
|
|
14,256 |
|
Bank-owned life
insurance (BOLI) |
56,396 |
|
|
40,861 |
|
Deferred tax asset |
5,192 |
|
|
5,892 |
|
Goodwill |
258,319 |
|
|
258,643 |
|
Core deposit
intangible, net |
15,161 |
|
|
16,357 |
|
Other assets |
20,674 |
|
|
22,212 |
|
Total assets |
$ |
5,446,797 |
|
|
$ |
5,055,000 |
|
|
|
|
|
Liabilities, Temporary Equity and Stockholders’
Equity |
|
|
|
Deposits: |
|
|
|
Noninterest-bearing |
$ |
1,107,620 |
|
|
$ |
1,071,656 |
|
Interest-bearing |
3,100,785 |
|
|
2,956,623 |
|
Total deposits |
4,208,405 |
|
|
4,028,279 |
|
FHLB advances |
470,784 |
|
|
288,325 |
|
Repurchase
agreements |
— |
|
|
12,160 |
|
Other borrowings |
107,335 |
|
|
68,295 |
|
Other borrowings,
related parties |
50 |
|
|
2,503 |
|
Junior subordinated
debentures |
18,147 |
|
|
18,147 |
|
Other liabilities |
12,448 |
|
|
9,982 |
|
Total liabilities |
4,817,169 |
|
|
4,427,691 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
Temporary
equity: Series A preferred stock |
— |
|
|
23,938 |
|
Stockholders’
equity: |
|
|
|
Common
stock |
185 |
|
|
184 |
|
Additional paid-in capital |
533,369 |
|
|
530,107 |
|
Retained
earnings |
91,997 |
|
|
70,698 |
|
Accumulated other comprehensive income |
4,077 |
|
|
2,382 |
|
Total stockholders’ equity |
629,628 |
|
|
603,371 |
|
Total liabilities, temporary equity and stockholders’
equity |
$ |
5,446,797 |
|
|
$ |
5,055,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent Bank Group, Inc. and SubsidiariesConsolidated
Average Balance Sheet Amounts, Interest Earned and Yield
AnalysisThree Months Ended June 30, 2016 and 2015(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, |
|
2016 |
|
2015 |
|
AverageOutstandingBalance |
|
Interest |
|
Yield/Rate |
|
AverageOutstandingBalance |
|
Interest |
|
Yield/Rate |
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
Loans |
$ |
4,177,451 |
|
|
$ |
50,418 |
|
|
4.85 |
% |
|
$ |
3,340,796 |
|
|
$ |
41,625 |
|
|
5.00 |
% |
Taxable
securities |
233,522 |
|
|
764 |
|
|
1.32 |
|
|
127,891 |
|
|
551 |
|
|
1.73 |
|
Nontaxable securities |
71,097 |
|
|
444 |
|
|
2.51 |
|
|
68,166 |
|
|
449 |
|
|
2.64 |
|
Federal
funds sold and other |
174,227 |
|
|
315 |
|
|
0.73 |
|
|
158,626 |
|
|
122 |
|
|
0.31 |
|
Total interest-earning assets |
4,656,297 |
|
|
$ |
51,941 |
|
|
4.49 |
|
|
3,695,479 |
|
|
$ |
42,747 |
|
|
4.64 |
|
Noninterest-earning assets |
711,638 |
|
|
|
|
|
|
563,855 |
|
|
|
|
|
Total assets |
$ |
5,367,935 |
|
|
|
|
|
|
$ |
4,259,334 |
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Checking
accounts |
$ |
1,770,050 |
|
|
$ |
1,998 |
|
|
0.45 |
% |
|
$ |
1,316,477 |
|
|
$ |
1,432 |
|
|
0.44 |
% |
Savings
accounts |
149,349 |
|
|
66 |
|
|
0.18 |
|
|
142,948 |
|
|
67 |
|
|
0.19 |
|
Money
market accounts |
401,386 |
|
|
452 |
|
|
0.45 |
|
|
255,235 |
|
|
179 |
|
|
0.28 |
|
Certificates of deposit |
806,403 |
|
|
1,407 |
|
|
0.70 |
|
|
857,438 |
|
|
1,340 |
|
|
0.63 |
|
Total deposits |
3,127,188 |
|
|
3,923 |
|
|
0.50 |
|
|
2,572,098 |
|
|
3,018 |
|
|
0.47 |
|
FHLB
advances |
461,231 |
|
|
998 |
|
|
0.87 |
|
|
203,989 |
|
|
718 |
|
|
1.41 |
|
Other
borrowings |
64,497 |
|
|
987 |
|
|
6.15 |
|
|
76,416 |
|
|
1,096 |
|
|
5.75 |
|
Junior
subordinated debentures |
18,147 |
|
|
150 |
|
|
3.32 |
|
|
18,147 |
|
|
135 |
|
|
2.98 |
|
Total interest-bearing liabilities |
3,671,063 |
|
|
6,058 |
|
|
0.66 |
|
|
2,870,650 |
|
|
4,967 |
|
|
0.69 |
|
Noninterest-bearing checking accounts |
1,060,507 |
|
|
|
|
|
|
825,075 |
|
|
|
|
|
Noninterest-bearing liabilities |
11,384 |
|
|
|
|
|
|
6,956 |
|
|
|
|
|
Stockholders’ equity |
624,981 |
|
|
|
|
|
|
556,653 |
|
|
|
|
|
Total liabilities and equity |
$ |
5,367,935 |
|
|
|
|
|
|
$ |
4,259,334 |
|
|
|
|
|
Net interest
income |
|
|
$ |
45,883 |
|
|
|
|
|
|
$ |
37,780 |
|
|
|
Interest rate
spread |
|
|
|
|
3.83 |
% |
|
|
|
|
|
3.95 |
% |
Net interest
margin |
|
|
|
|
3.96 |
|
|
|
|
|
|
4.10 |
|
Average
interest earning assets to interest bearing liabilities
|
|
|
|
|
126.84 |
|
|
|
|
|
|
128.73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent Bank Group, Inc. and SubsidiariesConsolidated
Average Balance Sheet Amounts, Interest Earned and Yield
AnalysisSix Months Ended June 30, 2016 and 2015(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, |
|
2016 |
|
2015 |
|
AverageOutstandingBalance |
|
Interest |
|
Yield/Rate |
|
AverageOutstandingBalance |
|
Interest |
|
Yield/Rate |
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
Loans |
$ |
4,104,386 |
|
|
$ |
100,328 |
|
|
4.92 |
% |
|
$ |
3,297,657 |
|
|
$ |
81,205 |
|
|
4.97 |
% |
Taxable
securities |
221,131 |
|
|
1,494 |
|
|
1.36 |
|
|
130,937 |
|
|
1,160 |
|
|
1.79 |
|
Nontaxable securities |
72,853 |
|
|
895 |
|
|
2.47 |
|
|
68,702 |
|
|
863 |
|
|
2.53 |
|
Federal
funds sold and other |
180,041 |
|
|
688 |
|
|
0.77 |
|
|
150,343 |
|
|
255 |
|
|
0.34 |
|
Total interest-earning assets |
4,578,411 |
|
|
$ |
103,405 |
|
|
4.54 |
|
|
3,647,639 |
|
|
$ |
83,483 |
|
|
4.62 |
|
Noninterest-earning assets |
726,698 |
|
|
|
|
|
|
549,604 |
|
|
|
|
|
Total assets |
$ |
5,305,109 |
|
|
|
|
|
|
$ |
4,197,243 |
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Checking
accounts |
$ |
1,681,673 |
|
|
$ |
3,743 |
|
|
0.45 |
% |
|
$ |
1,291,995 |
|
|
$ |
2,790 |
|
|
0.44 |
% |
Savings
accounts |
146,832 |
|
|
130 |
|
|
0.18 |
|
|
143,349 |
|
|
132 |
|
|
0.19 |
|
Money
market accounts |
453,001 |
|
|
911 |
|
|
0.40 |
|
|
245,963 |
|
|
279 |
|
|
0.23 |
|
Certificates of deposit |
815,878 |
|
|
2,790 |
|
|
0.69 |
|
|
838,212 |
|
|
2,526 |
|
|
0.61 |
|
Total deposits |
3,097,384 |
|
|
7,574 |
|
|
0.49 |
|
|
2,519,519 |
|
|
5,727 |
|
|
0.46 |
|
FHLB
advances |
448,480 |
|
|
1,999 |
|
|
0.90 |
|
|
211,871 |
|
|
1,470 |
|
|
1.40 |
|
Other
borrowings |
68,397 |
|
|
1,990 |
|
|
5.85 |
|
|
76,683 |
|
|
2,165 |
|
|
5.69 |
|
Junior
subordinated debentures |
18,147 |
|
|
299 |
|
|
3.31 |
|
|
18,147 |
|
|
263 |
|
|
2.92 |
|
Total interest-bearing liabilities |
3,632,408 |
|
|
11,862 |
|
|
0.66 |
|
|
2,826,220 |
|
|
9,625 |
|
|
0.69 |
|
Noninterest-bearing checking accounts |
1,038,270 |
|
|
|
|
|
|
811,450 |
|
|
|
|
|
Noninterest-bearing liabilities |
11,202 |
|
|
|
|
|
|
7,746 |
|
|
|
|
|
Stockholders’ equity |
623,229 |
|
|
|
|
|
|
551,827 |
|
|
|
|
|
Total liabilities and equity |
$ |
5,305,109 |
|
|
|
|
|
|
$ |
4,197,243 |
|
|
|
|
|
Net interest
income |
|
|
$ |
91,543 |
|
|
|
|
|
|
$ |
73,858 |
|
|
|
Interest rate
spread |
|
|
|
|
3.88 |
% |
|
|
|
|
|
3.93 |
% |
Net interest
margin |
|
|
|
|
4.02 |
|
|
|
|
|
|
4.08 |
|
Average
interest earning assets to interest bearing liabilities
|
|
|
|
|
126.04 |
|
|
|
|
|
|
129.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent Bank Group, Inc. and SubsidiariesLoan Portfolio
CompositionAs of June 30, 2016 and December 31, 2015(Dollars in
thousands)(Unaudited)
|
|
|
|
|
The
following table sets forth loan totals by category as of the dates
presented: |
|
|
|
June 30, 2016 |
|
December 31, 2015 |
|
|
Amount |
|
% of Total |
|
Amount |
|
% of Total |
Commercial |
|
$ |
636,557 |
|
|
14.9 |
% |
|
$ |
731,818 |
|
|
18.3 |
% |
Real estate: |
|
|
|
|
|
|
|
|
Commercial real estate |
|
2,229,913 |
|
|
52.3 |
|
|
1,949,734 |
|
|
48.7 |
|
Commercial construction, land and land development |
|
444,738 |
|
|
10.4 |
|
|
419,611 |
|
|
10.5 |
|
Residential real estate (1) |
|
640,187 |
|
|
15.0 |
|
|
620,289 |
|
|
15.5 |
|
Single-family interim construction |
|
232,658 |
|
|
5.5 |
|
|
187,984 |
|
|
4.7 |
|
Agricultural |
|
48,976 |
|
|
1.1 |
|
|
50,178 |
|
|
1.3 |
|
Consumer |
|
32,233 |
|
|
0.8 |
|
|
41,966 |
|
|
1.0 |
|
Other |
|
137 |
|
|
— |
|
|
124 |
|
|
— |
|
Total
loans |
|
4,265,399 |
|
|
100.0 |
% |
|
4,001,704 |
|
|
100.0 |
% |
Deferred loan fees |
|
(1,992 |
) |
|
|
|
(1,553 |
) |
|
|
Allowance for
losses |
|
(30,916 |
) |
|
|
|
(27,043 |
) |
|
|
Total loans,
net |
|
$ |
4,232,491 |
|
|
|
|
$ |
3,973,108 |
|
|
|
|
(1)
Includes loans held for sale at June 30, 2016 and December 31, 2015
of $13,942 and $12,299, respectively. |
|
|
Independent Bank Group, Inc. and SubsidiariesReconciliation of
Non-GAAP Financial MeasuresThree Months Ended June 30, 2016, March
31, 2016, December 31, 2015, September 30, 2015, and June 30,
2015(Dollars in thousands, except for share data)(Unaudited)
|
|
|
|
|
For the Three Months Ended |
|
|
June 30, 2016 |
March 31, 2016 |
December 31, 2015 |
September 30, 2015 |
June 30, 2015 |
Net Interest
Income - Reported |
(a) |
$ |
45,883 |
|
$ |
45,660 |
|
$ |
42,151 |
|
$ |
38,089 |
|
$ |
37,780 |
|
Income recognized on
acquired loans |
|
(265 |
) |
(1,333 |
) |
(516 |
) |
(88 |
) |
(555 |
) |
Adjusted Net
Interest Income |
(b) |
45,618 |
|
44,327 |
|
41,635 |
|
38,001 |
|
37,225 |
|
Provision
Expense - Reported |
(c) |
2,123 |
|
2,997 |
|
1,970 |
|
3,932 |
|
1,659 |
|
Noninterest
Income - Reported |
(d) |
4,929 |
|
4,470 |
|
4,254 |
|
3,799 |
|
4,109 |
|
Gain on sale of
loans |
|
— |
|
— |
|
— |
|
(116 |
) |
— |
|
Gain on sale of OREO
and repossessed assets |
|
(10 |
) |
(48 |
) |
(70 |
) |
(41 |
) |
(49 |
) |
Gain on sale of
securities |
|
(4 |
) |
— |
|
(44 |
) |
— |
|
(90 |
) |
Gain on sale of
premises and equipment |
|
(3 |
) |
(38 |
) |
(16 |
) |
374 |
|
— |
|
Adjusted
Noninterest Income |
(e) |
4,912 |
|
4,384 |
|
4,124 |
|
4,016 |
|
3,970 |
|
Noninterest
Expense - Reported |
(f) |
31,023 |
|
28,519 |
|
28,527 |
|
25,830 |
|
24,455 |
|
Senior leadership
restructure (6) |
|
(2,575 |
) |
— |
|
— |
|
— |
|
— |
|
OREO Impairment |
|
— |
|
(55 |
) |
— |
|
(10 |
) |
(25 |
) |
IPO related stock
grant |
|
(156 |
) |
(156 |
) |
(156 |
) |
(156 |
) |
(156 |
) |
Acquisition Expense
(5) |
|
(475 |
) |
(1,187 |
) |
(1,487 |
) |
(770 |
) |
(458 |
) |
Adjusted
Noninterest Expense |
(g) |
27,817 |
|
27,121 |
|
26,884 |
|
24,894 |
|
23,816 |
|
Pre-Tax
Pre-Provision Earnings |
(a) + (d) - (f) |
$ |
19,789 |
|
$ |
21,611 |
|
$ |
17,878 |
|
$ |
16,058 |
|
$ |
17,434 |
|
Core Pre-Tax
Pre-Provision Earnings |
(b) + (e) - (g) |
$ |
22,713 |
|
$ |
21,590 |
|
$ |
18,875 |
|
$ |
17,123 |
|
$ |
17,379 |
|
Core Earnings
(2) |
(b) - (c) + (e) -
(g) |
$ |
13,764 |
|
$ |
12,438 |
|
$ |
11,377 |
|
$ |
8,917 |
|
$ |
10,532 |
|
Reported
Efficiency Ratio |
(f) / (a + d) |
61.05 |
% |
56.89 |
% |
61.47 |
% |
61.66 |
% |
58.38 |
% |
Core
Efficiency Ratio |
(g) / (b + e) |
55.05 |
% |
55.68 |
% |
58.75 |
% |
59.25 |
% |
57.81 |
% |
Adjusted Return
on Average Assets (1) |
|
1.03 |
% |
0.95 |
% |
0.93 |
% |
0.83 |
% |
0.99 |
% |
Adjusted Return
on Average Equity (1) |
|
8.86 |
% |
8.09 |
% |
7.89 |
% |
6.53 |
% |
7.93 |
% |
Adjusted Return
on Tangible Equity (1) |
|
15.76 |
% |
14.57 |
% |
14.49 |
% |
11.77 |
% |
14.51 |
% |
Total Average
Assets |
|
$ |
5,367,935 |
|
$ |
5,242,289 |
|
$ |
4,847,375 |
|
$ |
4,270,604 |
|
$ |
4,259,334 |
|
Total Average
Stockholders' Equity (3) |
|
$ |
624,981 |
|
$ |
618,059 |
|
$ |
572,160 |
|
$ |
541,939 |
|
$ |
532,715 |
|
Total Average Tangible
Stockholders' Equity (3) (4) |
|
$ |
351,263 |
|
$ |
343,418 |
|
$ |
311,549 |
|
$ |
300,578 |
|
$ |
291,166 |
|
|
(1)
Calculated using core earnings |
(2)
Assumes actual effective tax rate of 33.2%, 33.1%, 32.7%,
32.4%, and 33.0%, respectively. December 31, 2015 tax rate
adjusted for effect of non-deductible acquisition expenses. |
(3)
Excludes average balance of Series A preferred stock. |
(4)
Excludes average balance of goodwill and net core deposit
intangibles. |
(5)
Acquisition expenses include $385 thousand, $548 thousand, $860
thousand, $477 thousand, and $430 thousand of compensation and
bonus expenses in addition to $90 thousand, $639 thousand, $627
thousand, $293 thousand, and $28 thousand of merger-related
expenses for the quarters ended June 30, 2016, March 31, 2016,
December 31, 2015, September 30, 2015, and June 30, 2015
respectively. |
(6)
Includes $1,952 related to the former Houston Region CEO's
Separation Agreement. |
|
|
Independent Bank Group, Inc. and SubsidiariesReconciliation of
Non-GAAP Financial MeasuresAs of June 30, 2016 and December 31,
2015(Dollars in thousands, except per share
information)(Unaudited)
|
|
|
|
Tangible Book
Value Per Common Share |
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
2016 |
|
2015 |
Tangible Common
Equity |
|
|
|
Total common
stockholders' equity |
$ |
629,628 |
|
|
$ |
603,371 |
|
Adjustments: |
|
|
|
Goodwill |
(258,319 |
) |
|
(258,643 |
) |
Core deposit
intangibles, net |
(15,161 |
) |
|
(16,357 |
) |
Tangible common
equity |
$ |
356,148 |
|
|
$ |
328,371 |
|
Tangible
assets |
$ |
5,173,317 |
|
|
$ |
4,780,000 |
|
Common shares
outstanding |
18,475,978 |
|
|
18,399,194 |
|
Tangible common equity
to tangible assets |
6.88 |
% |
|
6.87 |
% |
Book value per common
share |
$ |
34.08 |
|
|
$ |
32.79 |
|
Tangible book value per
common share |
19.28 |
|
|
17.85 |
|
|
|
|
|
|
|
|
|
|
|
Tier 1 Common and Tier 1 Capital to Risk-Weighted Assets
Ratio |
|
June 30, |
|
December 31, |
|
2016 |
|
2015 |
Tier 1 Common
Equity |
|
|
|
Total common
stockholders' equity - GAAP |
$ |
629,628 |
|
|
$ |
603,371 |
|
Adjustments: |
|
|
|
Unrealized gain on
available-for-sale securities |
(4,077 |
) |
|
(2,382 |
) |
Goodwill |
(258,319 |
) |
|
(258,643 |
) |
Core deposit
intangibles, net |
(5,913 |
) |
|
(4,253 |
) |
Tier 1 common
equity |
$ |
361,319 |
|
|
$ |
338,093 |
|
Qualifying Restricted
Core Capital Elements (junior subordinated debentures) |
17,600 |
|
|
17,600 |
|
Series A Preferred
Stock |
— |
|
|
23,938 |
|
Tier 1
Equity |
$ |
378,919 |
|
|
$ |
379,631 |
|
Total
Risk-Weighted Assets |
$ |
4,579,687 |
|
|
$ |
4,256,662 |
|
Estimated tier 1 equity
to risk-weighted assets ratio |
8.27 |
% |
|
8.92 |
% |
Estimated tier 1 common
equity to risk-weighted assets ratio |
7.89 |
|
|
7.94 |
|
Contacts:
Analysts/Investors:
Torry Berntsen
President
(972) 562-9004
tberntsen@ibtx.com
Michelle Hickox
Executive Vice President and Chief Financial Officer
(972) 562-9004
mhickox@ibtx.com
Media:
Peggy Smolen
Marketing Director
(972) 562-9004
psmolen@ibtx.com
Independent Bank (NASDAQ:IBTX)
Historical Stock Chart
From Jun 2024 to Jul 2024
Independent Bank (NASDAQ:IBTX)
Historical Stock Chart
From Jul 2023 to Jul 2024