Independent Bank Group, Inc. (NASDAQ:IBTX), the holding company for
Independent Bank, today announced net income of $29.6 million, or
$1.02 per diluted share, for the quarter ended June 30, 2018
compared to $18.1 million, or $0.65 per diluted share, for the
quarter ended June 30, 2017 and $29.0 million, or $1.02 per
diluted share, for the quarter ended March 31, 2018.
For 2018, net income and earnings per share were
positively impacted by the 14% reduction of the corporate U.S.
statutory federal tax rate from 35% to 21% as a result of the
enactment of the Tax Cuts and Jobs Act (TCJA), which became
effective January 1, 2018.
Highlights
- Adjusted (non-GAAP) net income was $32.2 million, or $1.11 per
diluted share, compared to $29.2 million, or $1.03 per diluted
share, for first quarter 2018
- Adjusted (non-GAAP) return on average assets increased to 1.41%
and adjusted (non-GAAP) efficiency ratio improved to 49.5%
- Strong organic growth of 18.5% of loans held for investment for
the quarter (annualized) and 16.6% year to date
- Continued strong credit quality metrics with nonperforming
assets of 0.17%
- Closed the Integrity Bancshares acquisition on June 1, 2018 and
announced the acquisition of Guaranty Bancorp on May 22, 2018
Independent Bank Group Chairman and CEO David R.
Brooks said, “Our second quarter performance reflects the
continuation of our growing profitability metrics and strong loan
growth reported in the first quarter. Despite some headwinds
related to deposit costs, we had another record quarter for
earnings, return on assets and return on equity.” Brooks continued,
“We continue to build out our footprint in Houston and Colorado
with strategic acquisitions, including the completion of
the Integrity acquisition in June and the announcement of the
Guaranty transaction in May. These acquisitions reflect the
continuing execution of our planned strategy to grow the company
through the acquisition of premier franchises in dynamic
markets."
Second Quarter 2018 Operating Results
Net Interest Income
- Net interest income was $78.9 million for second quarter 2018
compared to $69.5 million for second quarter 2017 and $74.0 million
for first quarter 2018. The increase in net interest income from
the previous year and linked quarter was due to increased average
earning asset balances resulting from organic growth and the
acquisition of Integrity Bancshares, as well as increased loan
accretion.
- The average balance of total interest-earning assets grew by
$642.0 million and totaled $8.0 billion at June 30, 2018
compared to $7.3 billion at June 30, 2017 and grew $467.4
million compared to $7.5 billion at March 31, 2018. The
increase from the prior year and linked quarter is due primarily to
organic growth as well as $224.8 million in average earning assets
acquired in the Integrity transaction.
- The yield on interest-earning assets was 4.89% for second
quarter 2018 compared to 4.38% for second quarter 2017 and 4.77%
for first quarter 2018. The increase from the prior year and linked
quarter is due primarily to higher rates on interest-earning assets
due to continued increases in the Fed Funds rate during these
periods. In addition, the increase from the linked quarter is due
to loans and taxable securities acquired in the Integrity
transaction, which had higher effective interest rates.
- The cost of interest bearing liabilities, including borrowings,
was 1.27% for second quarter 2018 compared to 0.77% for second
quarter 2017 and 1.05% for first quarter 2018. The increase from
the prior year and linked quarter is primarily due to higher rates
offered on our deposits, primarily commercial money market accounts
and certificates of deposit, resulting both from market competition
in addition to general increases in interest rates on deposit
products tied to Fed Funds rates and short-term FHLB advances.
- The net interest margin was 3.97% for second quarter 2018
compared to 3.81% for second quarter 2017 and 4.00% for first
quarter 2018. The adjusted (non-GAAP) net interest margin, which
excludes purchased loan accretion, was 3.93% for second quarter
2018 compared to 3.78% for second quarter 2017 and 3.96% for first
quarter 2018. The increase in the net interest margin from the
prior year is primarily due to the multiple increases in the Fed
Funds target rate over the year as well as earning assets shifting
from cash to loans. The decrease from the linked quarter is
primarily related to the aforementioned changes in our deposit
rates increasing at a faster pace than our interest earning asset
rates.
Noninterest Income
- Total noninterest income decreased $862 thousand compared to
second quarter 2017 and increased $678 thousand compared to first
quarter 2018.
- The decrease from the prior year is due primarily to a $1.4
million decrease in mortgage banking revenue, offset by an $857
thousand increase in other noninterest income, primarily increases
in correspondent bank earnings credits of $584 thousand and
mortgage warehouse purchase fee income of $460 thousand. The
decrease in mortgage banking revenue is reflective of the decrease
in market demand related to the increase in interest rates for the
year over year period.
- The increase from the linked quarter reflects increases of $195
thousand in mortgage banking revenue and $285 thousand in other
noninterest income, primarily due to higher earnings credits offset
by a $214 thousand decrease in loss on sale of securities.
Noninterest Expense
- Total noninterest expense decreased $2.2 million compared to
second quarter 2017 and increased $4.2 million compared to first
quarter 2018.
- The decrease in expense compared to second quarter 2017 is due
primarily to decreases of $489 thousand in FDIC assessment and $2.2
million in acquisition expenses, offset by an increase in other
noninterest expense of $1.3 million primarily due to higher
deposit-related expenses as well as an increase in charitable
contributions for the year over year period. The decrease in FDIC
assessment expense is related to the improvement of certain Bank
capital ratios used in the assessment calculation. Acquisition
expenses were elevated in second quarter 2017 due to retention
bonuses paid and professional fees incurred related to the Carlile
transaction, which closed on April 1, 2017.
- The increase from the linked quarter is primarily related to
increases of $1.6 million in salaries and benefits, $354 thousand
in occupancy and $2.9 million in acquisition-related expenses
offset by a decrease in other noninterest expense of $527 thousand.
The increase in salaries and occupancy expense for the second
quarter is primarily due to signing bonuses, additional headcount
and branch locations related to the Integrity acquisition. The
higher level of acquisition expense from the linked quarter is
primarily due to professional fees incurred related to the
completion of the Integrity Bancshares acquisition in addition to
accrued termination and conversion-related expenses related to the
transaction and professional fees related to the Guaranty
transaction.
Provision for Loan Losses
- Provision for loan loss was $2.7 million for second quarter
2018, an increase of $258 thousand compared to $2.5 million for
second quarter 2017 and was unchanged compared to the first quarter
2018. Provision expense is primarily reflective of organic loan
growth as well as charge-offs or specific reserves taken during the
respective period.
- The allowance for loan losses was $43.3 million, or 0.58% of
total loans, at June 30, 2018, compared to $35.9 million, or
0.59% of total loans at June 30, 2017, and compared to $42.0
million, or 0.64% of total loans, at March 31, 2018. The
dollar increases from prior periods are primarily due to additional
general reserves for organic loan growth. The decrease in the
allowance for loan losses as a percentage of loans from prior
periods reflects that loans acquired in the Integrity transaction
were recorded at fair value without an allowance at acquisition
date.
Income Taxes
- Federal income tax expense of $7.5 million was recorded for the
quarter ended June 30, 2018, an effective rate of 20.2%
compared to tax expense of $8.6 million and an effective rate of
32.1% for the quarter ended June 30, 2017 and tax expense of
$6.8 million and an effective rate of 19.0% for the quarter ended
March 31, 2018. The lower tax rate in first and second quarter
2018 is primarily due to the reduction of the corporate U.S.
statutory federal income tax rate from 35% to 21% as a result of
the TCJA. The increase from the linked quarter is due to $723
thousand of nondeductible acquisition expenses incurred during the
period.
Second Quarter 2018 Balance Sheet
Highlights:
Loans
- Total loans held for investment, net of mortgage warehouse
purchase loans, were $7.5 billion at June 30, 2018 compared to
$6.5 billion at March 31, 2018 and $6.1 billion at
June 30, 2017. Loans held for investment grew by $952.3
million for the quarter, or 14.6%, $651.8 million of which was
acquired in the Integrity acquisition, and $300.6 million of which
was organic loan growth. Loans held for investment increased $1.4
billion from June 30, 2017, or 22.2%, $651.8 of which was
acquired in the Integrity acquisition, offset by $104.3 million in
loans sold with the branch sales in third and fourth quarter 2017,
and $813.3 million of which was organic growth. Loans have grown
organically 16.6%, annualized, from December 31, 2017. Organic loan
growth for the second quarter was 18.5% on an annualized
basis.
- Average mortgage warehouse purchase loans were $124.0 million
at June 30, 2018 compared to $114.4 million at March 31,
2018, representing an increase of $9.5 million, or 8.3% for the
quarter, and compared to $107.1 million at June 30, 2017, an
increase of $16.8 million, or 15.7% year over year. The change from
the linked quarter and prior year quarter is reflective of mortgage
loan market activity during the respective periods.
- Commercial real estate (CRE) loans were $3.9 billion at
June 30, 2018 compared to $3.5 billion at March 31, 2018
and $3.2 billion at June 30, 2017, or 51.4%, 52.4% and 51.6%
of total loans, respectively.
Asset Quality
- Total nonperforming assets decreased to $16.9 million, or 0.17%
of total assets at June 30, 2018, from $20.5 million, or 0.23%
of total assets at March 31, 2018, and decreased from $26.1
million, or 0.30% of total assets at June 30, 2017.
- Total nonperforming loans decreased to $12.6 million, or 0.17%
of total loans at June 30, 2018, from $14.9 million, or 0.23%
of total loans at March 31, 2018, and decreased from $14.5
million, or 0.24% of total loans at June 30, 2017.
- The net decrease in the dollar amount of nonperforming assets
and nonperforming loans from the linked quarter is primarily due to
dispositions of a $1.6 million nonaccrual commercial real estate
loan and three commercial nonaccrual loans totaling $1.9 million
offset by the addition of two loans placed on nonaccrual status
totaling $1.0 million, as well as the disposition of $1.2 million
of other real estate during the quarter.
- The decrease in the dollar amount of nonperforming assets from
the prior year is primarily due to dispositions in other real
estate owned totaling $6.5 million, of which $4.5 million was
obtained in the Carlile acquisition, in addition to the above
mentioned pay-offs of nonaccrual loans in second quarter 2018. The
decrease in nonperforming loans from the prior year is primarily
due to the above mentioned nonaccrual dispositions in addition to a
$1.3 million residential real estate pay-down and a troubled debt
restructured loan pay-off totaling $778 thousand, offset by $4.4
million in additional nonaccrual loans.
- Charge-offs were 0.08% annualized in the second quarter 2018
compared to 0.01% annualized in the linked quarter and less than
0.01% annualized in the prior year quarter. The increase in the
second quarter 2018 charge-offs was a result of a $342 thousand
charge-off on the commercial real estate nonaccrual loan and a $998
thousand charge-off on the commercial nonaccrual loans mentioned
above.
Deposits and Borrowings
- Total deposits were $7.5 billion at June 30, 2018 compared
to $6.8 billion at March 31, 2018 and compared to $6.7 billion
at June 30, 2017. The increase in deposits for both periods is
primarily due to $593 million in deposit accounts acquired in the
Integrity transaction and organic growth.
- Total borrowings (other than junior subordinated debentures)
were $887.7 million at June 30, 2018, an increase of $270.1
million from March 31, 2018 and an increase of $303.4 million
from June 30, 2017. The change in the linked quarter reflects
the use of short term FHLB advances as needed for liquidity as well
as $60 million of FHLB advances from the Integrity acquisition. The
change in the prior year is due to aforementioned change in FHLB
advances and the issuance of $29.3 million, net of issuance costs,
of 5.0% fixed to floating rate subordinated debentures issued in
fourth quarter 2017.
Capital
- Book value and tangible book value per common share (non-GAAP)
increased to $50.49 and $25.23, respectively, at June 30, 2018
compared to $47.76 and $24.37, respectively, at March 31, 2018
and compared to $45.33 and $21.71, respectively, at June 30,
2017. The increase from prior year is due to the retention of
earnings, the additional capital from the Integrity acquisition in
second quarter 2018 and the issuance of common stock in fourth
quarter 2017. The increase from the linked quarter is due to the
retention of earnings and the Integrity acquisition.
- Independent Bank Group is well capitalized under regulatory
guidelines. At June 30, 2018, our 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 9.31%, 9.71%, 9.67% and 11.85%, respectively,
compared to 9.59%, 9.18%, 10.00%, and 12.48%, respectively at
March 31, 2018. The decrease in the risk-weighted ratios from
March 31, 2018 is primarily due to increased asset levels
resulting from the Integrity acquisition and organic loan
growth.
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, 2018 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, 2018 and will adjust amounts preliminarily reported,
if necessary.
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 in four market regions
located in the Dallas/Fort Worth, Austin and Houston, Texas and the
Colorado Front Range areas.
Conference Call
A conference call covering Independent Bank Group’s second
quarter earnings announcement will be held on Tuesday, July 24,
2018 at 8:30 a.m. (EDT) and can be accessed by the webcast link,
https://edge.media-server.com/m6/p/pm7kvzm2, or by calling
1-877-303-7611 and by identifying the conference ID number 5497523.
The conference materials will also be available by accessing the
Investor Relations page of our website, www.ibtx.com. A recording
of the conference call and the conference materials will be
available from July 24, 2018 through August 1, 2018 on our
website.
Forward-Looking Statements
The numbers as of and for the quarter ended June 30, 2018
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 the Company 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 the
Company'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. 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 our future financial results and
performance and could cause such results or performance to differ
materially from those expressed in forward looking statements.
These factors include, but are not limited to, the following: (1)
the Company’s ability to sustain its current internal growth rate
and total growth rate; (2) changes in geopolitical, business and
economic events, occurrences and conditions, including changes in
rates of inflation or deflation, nationally, regionally and in the
Company’s target markets, particularly in Texas and Colorado; (3)
worsening business and economic conditions nationally, regionally
and in the Company’s target markets, particularly in Texas and
Colorado, and the geographic areas in those states in which the
Company operates; (4) the Company’s dependence on its management
team and its ability to attract, motivate and retain qualified
personnel; (5) the concentration of the Company’s business within
its geographic areas of operation in Texas and Colorado; (6)
changes in asset quality, including increases in default rates and
loans and higher levels of nonperforming loans and loan
charge-offs; (7) concentration of the loan portfolio of Independent
Bank, before and after the completion of acquisitions of financial
institutions, in commercial and residential real estate loans and
changes in the prices, values and sales volumes of commercial and
residential real estate; (8) the ability of Independent Bank to
make loans with acceptable net interest margins and levels of risk
of repayment and to otherwise invest in assets at acceptable yields
and presenting acceptable investment risks; (9) inaccuracy of the
assumptions and estimates that the managements of Independent Bank
and the financial institutions that it acquires make in
establishing reserves for probable loan losses and other estimates;
(10) lack of liquidity, including as a result of a reduction in the
amount of sources of liquidity, that the Company currently has;
(11) material increases or decreases in the amount of deposits held
by Independent Bank or other financial institutions that the
Company acquires and the cost of those deposits; (12) the Company’s
access to the debt and equity markets and the overall cost of
funding its operations; (13) regulatory requirements to maintain
minimum capital levels or maintenance of capital at levels
sufficient to support the Company’s anticipated growth; (14)
changes in market interest rates that affect the pricing of the
loans and deposits of each of Independent Bank and the financial
institutions that the Company acquires and the net interest income
of each of Independent Bank and the financial institutions that the
Company acquires; (15) fluctuations in the market value and
liquidity of the securities the Company holds for sale, including
as a result of changes in market interest rates; (16) effects of
competition from a wide variety of local, regional, national and
other providers of financial, investment and insurance services;
(17) the institution and outcome of, and costs associated with,
litigation and other legal proceedings against one of more of the
Company, Independent Bank and financial institutions that the
Company acquires or to which any of such entities is subject; (18)
the occurrence of market conditions adversely affecting the
financial industry generally; (19) the impact of recent and future
legislative and regulatory changes, including changes in banking,
securities and tax laws and regulations and their application by
the Company’s regulators, and changes in federal government
policies; (20) changes in accounting policies and practices, as may
be adopted by the bank regulatory agencies, the Financial
Accounting Standards Board, the SEC and the Public Company
Accounting Oversight Board, or PCAOB, as the case may be; (21)
governmental monetary and fiscal policies; (22) changes in the
scope and cost of FDIC insurance and other coverage; (23) the
effects of war or other conflicts, acts of terrorism (including
cyber attacks) or other catastrophic events, including storms,
droughts, tornadoes, hurricanes and flooding, that may affect
general economic conditions; (24) the Company’s actual cost savings
resulting from previous or future acquisitions are less than
expected, it is unable to realize those cost savings as soon as
expected, or it incurs additional or unexpected costs; (25) the
Company’s revenues after previous or future acquisitions are less
than expected; (26) the liquidity of, and changes in the amounts
and sources of liquidity available to, us, before and after the
acquisition of any financial institutions that the Company
acquires; (27) deposit attrition, operating costs, customer loss
and business disruption before and after the Company’s completed
acquisitions, including, without limitation, difficulties in
maintaining relationships with employees, may be greater than the
Company expected; (28) the effects of the combination of the
operations of financial institutions that the Company acquired in
the recent past or may acquire in the future with the Company’s
operations and the operations of Independent Bank, the effects of
the integration of such operations being unsuccessful, and the
effects of such integration being more difficult, time-consuming or
costly than expected or not yielding the cost savings that the
Company expects; (29) the impact of investments that the Company or
Independent Bank may have made or may make and the changes in the
value of those investments; (30) the quality of the assets of
financial institutions and companies that the Company has acquired
in the recent past or may acquire in the future being different
than the Company determined or determine in its due diligence
investigation in connection with the acquisition of such financial
institutions and any inadequacy of loan loss reserves relating to,
and exposure to unrecoverable losses on, loans acquired; (31) the
Company’s ability to continue to identify acquisition targets and
successfully acquire desirable financial institutions to sustain
its growth, to expand its presence in its markets and to enter new
markets; (32) technology-related changes are harder to make or are
more expensive than expected; (33) attacks on the security of, and
breaches of, the Company or Independent Bank’s digital information
systems, the costs the Company or Independent Bank incur to provide
security against such attacks and any costs and liability the
Company or Independent Bank incurs in connection with any breach of
those systems; (34) the potential impact of technology and
“FinTech” entities on the banking industry generally, and (35) our
success at managing the risks involved in the foregoing items; and
(36) the other factors that are described in the Company’s Annual
Report on Form 10-K filed on February 27, 2018, 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 “adjusted net income”, "adjusted
earnings", “tangible book value”, “tangible book value per common
share”, “adjusted efficiency ratio”, “tangible common equity to
tangible assets”, “adjusted net interest margin”, "return on
tangible equity," “adjusted return on average assets” and “adjusted
return on average equity” and are supplemental measures that are
not required by, or are not presented in accordance with,
accounting principles generally accepted in the United States. We
consider the use of select non-GAAP financial measures and ratios
to be useful for financial operational decision making and useful
in evaluating period-to-period comparisons. We believe that these
non-GAAP financial measures provide meaningful supplemental
information regarding our performance by excluding certain
expenditures or assets that we believe are not indicative of our
primary business operating results. We believe that management and
investors benefit from referring to these non- GAAP financial
measures in assessing our performance and when planning,
forecasting, analyzing and comparing past, present and future
periods.
We believe that these measures provide useful information to
management and investors that is supplementary to our financial
condition, results of operations and cash flows computed in
accordance with GAAP; however we acknowledge that our financial
measures have a number of limitations relative to GAAP financial
measures. Certain non-GAAP financial measures exclude items of
income, expenditures, expenses, assets, or liabilities, including
provisions for 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.
Contacts:
Analysts/Investors:
Michelle Hickox
Executive Vice President and Chief Financial Officer (972) 562-9004
mhickox@ibtx.com |
Mark HaynieExecutive
Vice President and General Counsel (972) 562-9004
mhaynie@ibtx.com |
Media:
Peggy
SmolenSenior Vice President, Marketing & Communications
Director(972) 562-9004psmolen@ibtx.com |
Source: Independent Bank Group, Inc.
|
Independent Bank Group, Inc. and Subsidiaries |
Consolidated Financial Data |
Three
Months Ended June 30, 2018, March 31, 2018, December 31, 2017,
September 30, 2017 and June 30, 2017 |
(Dollars
in thousands, except for share data) |
(Unaudited) |
|
|
As of and for the quarter ended |
|
June 30, 2018 |
|
March 31, 2018 |
|
December 31, 2017 |
|
September 30, 2017 |
|
June 30, 2017 |
Selected Income
Statement Data |
|
|
|
|
|
|
|
|
|
Interest income |
$ |
97,082 |
|
|
$ |
88,114 |
|
|
$ |
87,420 |
|
|
$ |
84,672 |
|
|
$ |
79,883 |
|
Interest expense |
18,173 |
|
|
14,147 |
|
|
12,166 |
|
|
11,815 |
|
|
10,383 |
|
Net
interest income |
78,909 |
|
|
73,967 |
|
|
75,254 |
|
|
72,857 |
|
|
69,500 |
|
Provision for loan
losses |
2,730 |
|
|
2,695 |
|
|
1,897 |
|
|
1,873 |
|
|
2,472 |
|
Net
interest income after provision for loan losses |
76,179 |
|
|
71,272 |
|
|
73,357 |
|
|
70,984 |
|
|
67,028 |
|
Noninterest income |
10,133 |
|
|
9,455 |
|
|
13,579 |
|
|
12,130 |
|
|
10,995 |
|
Noninterest
expense |
49,158 |
|
|
44,958 |
|
|
49,553 |
|
|
47,904 |
|
|
51,328 |
|
Income tax expense |
7,519 |
|
|
6,805 |
|
|
18,190 |
|
|
11,696 |
|
|
8,561 |
|
Net
income |
29,635 |
|
|
28,964 |
|
|
19,193 |
|
|
23,514 |
|
|
18,134 |
|
Adjusted net income
(1) |
32,239 |
|
|
29,231 |
|
|
25,313 |
|
|
24,829 |
|
|
22,746 |
|
|
|
|
|
|
|
|
|
|
|
Per Share Data
(Common Stock) |
|
|
|
|
|
|
|
|
|
Earnings: |
|
|
|
|
|
|
|
|
|
Basic |
$ |
1.02 |
|
|
$ |
1.02 |
|
|
$ |
0.69 |
|
|
$ |
0.85 |
|
|
$ |
0.65 |
|
Diluted |
1.02 |
|
|
1.02 |
|
|
0.68 |
|
|
0.84 |
|
|
0.65 |
|
Adjusted earnings: |
|
|
|
|
|
|
|
|
|
Basic
(1) |
1.11 |
|
|
1.03 |
|
|
0.91 |
|
|
0.89 |
|
|
0.82 |
|
Diluted
(1) |
1.11 |
|
|
1.03 |
|
|
0.90 |
|
|
0.89 |
|
|
0.82 |
|
Dividends |
0.14 |
|
|
0.12 |
|
|
0.10 |
|
|
0.10 |
|
|
0.10 |
|
Book value |
50.49 |
|
|
47.76 |
|
|
47.28 |
|
|
46.09 |
|
|
45.33 |
|
Tangible book
value (1) |
25.23 |
|
|
24.37 |
|
|
23.76 |
|
|
22.57 |
|
|
21.71 |
|
Common shares
outstanding |
30,468,413 |
|
|
28,362,973 |
|
|
28,254,893 |
|
|
27,804,877 |
|
|
27,790,144 |
|
Weighted average basic
shares outstanding (3) |
29,065,426 |
|
|
28,320,792 |
|
|
27,933,201 |
|
|
27,797,779 |
|
|
27,782,584 |
|
Weighted average
diluted shares outstanding (3) |
29,157,817 |
|
|
28,426,145 |
|
|
28,041,371 |
|
|
27,901,579 |
|
|
27,887,485 |
|
|
|
|
|
|
|
|
|
|
|
Selected Period
End Balance Sheet Data |
|
|
|
|
|
|
|
|
|
Total assets |
$ |
10,017,037 |
|
|
$ |
8,811,014 |
|
|
$ |
8,684,463 |
|
|
$ |
8,891,114 |
|
|
$ |
8,593,979 |
|
Cash and cash
equivalents |
447,049 |
|
|
398,102 |
|
|
431,102 |
|
|
763,017 |
|
|
579,900 |
|
Securities available
for sale |
791,065 |
|
|
762,662 |
|
|
763,002 |
|
|
747,147 |
|
|
754,139 |
|
Loans held for
sale |
30,056 |
|
|
28,017 |
|
|
39,202 |
|
|
25,854 |
|
|
25,218 |
|
Loans held for
investment, excluding mortgage warehouse purchase loans |
7,479,977 |
|
|
6,527,681 |
|
|
6,309,549 |
|
|
6,226,343 |
|
|
6,119,305 |
|
Mortgage warehouse
purchase loans |
164,790 |
|
|
124,700 |
|
|
164,694 |
|
|
138,561 |
|
|
120,217 |
|
Allowance for loan
losses |
43,308 |
|
|
41,960 |
|
|
39,402 |
|
|
37,770 |
|
|
35,881 |
|
Goodwill and core
deposit intangible |
769,630 |
|
|
663,371 |
|
|
664,702 |
|
|
653,899 |
|
|
656,255 |
|
Other real estate
owned |
4,200 |
|
|
5,463 |
|
|
7,126 |
|
|
10,189 |
|
|
11,476 |
|
Noninterest-bearing
deposits |
2,170,639 |
|
|
1,836,929 |
|
|
1,907,770 |
|
|
1,939,342 |
|
|
1,885,138 |
|
Interest-bearing
deposits |
5,362,766 |
|
|
4,957,731 |
|
|
4,725,052 |
|
|
4,933,289 |
|
|
4,784,150 |
|
Borrowings (other than
junior subordinated debentures) |
887,724 |
|
|
617,636 |
|
|
667,578 |
|
|
683,492 |
|
|
584,349 |
|
Junior subordinated
debentures |
27,753 |
|
|
27,704 |
|
|
27,654 |
|
|
27,604 |
|
|
27,555 |
|
Total stockholders'
equity |
1,538,269 |
|
|
1,354,699 |
|
|
1,336,018 |
|
|
1,281,460 |
|
|
1,259,592 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent Bank Group, Inc. and Subsidiaries |
Consolidated Financial Data |
Three
Months Ended June 30, 2018, March 31, 2018, December 31, 2017,
September 30, 2017 and June 30, 2017 |
(Dollars
in thousands, except for share data) |
(Unaudited) |
|
|
As of and for the quarter ended |
|
June 30, 2018 |
|
March 31, 2018 |
|
December 31, 2017 |
|
September 30, 2017 |
|
June 30, 2017 |
Selected
Performance Metrics |
|
|
|
|
|
|
|
|
|
Return on average
assets |
1.30 |
% |
|
1.35 |
% |
|
0.87 |
% |
|
1.07 |
% |
|
0.86 |
% |
Return on average
equity |
8.38 |
|
|
8.72 |
|
|
5.79 |
|
|
7.33 |
|
|
5.85 |
|
Return on tangible
equity (4) |
16.49 |
|
|
17.19 |
|
|
11.72 |
|
|
15.12 |
|
|
12.47 |
|
Adjusted return on
average assets (1) |
1.41 |
|
|
1.37 |
|
|
1.15 |
|
|
1.13 |
|
|
1.08 |
|
Adjusted return on
average equity (1) |
9.12 |
|
|
8.80 |
|
|
7.64 |
|
|
7.74 |
|
|
7.34 |
|
Adjusted return on
tangible equity (1) (4) |
17.94 |
|
|
17.34 |
|
|
15.46 |
|
|
15.96 |
|
|
15.64 |
|
Net interest
margin |
3.97 |
|
|
4.00 |
|
|
3.97 |
|
|
3.85 |
|
|
3.81 |
|
Adjusted net interest
margin (2) |
3.93 |
|
|
3.96 |
|
|
3.84 |
|
|
3.80 |
|
|
3.78 |
|
Efficiency ratio |
53.64 |
|
|
52.30 |
|
|
54.29 |
|
|
54.71 |
|
|
62.01 |
|
Adjusted efficiency
ratio (1) |
49.50 |
|
|
51.40 |
|
|
50.06 |
|
|
51.19 |
|
|
53.15 |
|
|
|
|
|
|
|
|
|
|
|
Credit Quality
Ratios (5) |
|
|
|
|
|
|
|
|
|
Nonperforming assets to
total assets |
0.17 |
% |
|
0.23 |
% |
|
0.26 |
% |
|
0.28 |
% |
|
0.30 |
% |
Nonperforming loans to
total loans held for investment (6) |
0.17 |
|
|
0.23 |
|
|
0.24 |
|
|
0.24 |
|
|
0.24 |
|
Nonperforming assets to
total loans held for investment and other real estate (6) |
0.23 |
|
|
0.31 |
|
|
0.36 |
|
|
0.40 |
|
|
0.43 |
|
Allowance for loan
losses to non-performing loans |
344.70 |
|
|
281.20 |
|
|
255.62 |
|
|
257.76 |
|
|
247.59 |
|
Allowance for loan
losses to total loans held for investment (6) |
0.58 |
|
|
0.64 |
|
|
0.62 |
|
|
0.61 |
|
|
0.59 |
|
Net charge-offs to
average loans outstanding (annualized) |
0.08 |
|
|
0.01 |
|
|
0.02 |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
Capital
Ratios |
|
|
|
|
|
|
|
|
|
Estimated common equity
tier 1 capital to risk-weighted assets |
9.31 |
% |
|
9.59 |
% |
|
9.61 |
% |
|
9.17 |
% |
|
9.03 |
% |
Estimated tier 1
capital to average assets |
9.71 |
|
|
9.18 |
|
|
8.92 |
|
|
8.30 |
|
|
8.23 |
|
Estimated tier 1
capital to risk-weighted assets |
9.67 |
|
|
10.00 |
|
|
10.05 |
|
|
9.60 |
|
|
9.46 |
|
Estimated total capital
to risk-weighted assets |
11.85 |
|
|
12.48 |
|
|
12.56 |
|
|
11.72 |
|
|
11.60 |
|
Total stockholders'
equity to total assets |
15.36 |
|
|
15.38 |
|
|
15.38 |
|
|
14.41 |
|
|
14.66 |
|
Tangible common equity
to tangible assets (1) |
8.31 |
|
|
8.49 |
|
|
8.37 |
|
|
7.62 |
|
|
7.60 |
|
|
|
|
|
|
|
|
|
|
|
(1)
Non-GAAP financial measures. See reconciliation. |
(2)
Non-GAAP financial measure. Excludes income recognized on acquired
loans of $954, $739, $2,463, $905 and $572, respectively. |
(3) Total
number of shares includes participating shares (those with dividend
rights). |
(4)
Non-GAAP financial measure. Excludes average balance of goodwill
and net core deposit intangibles. |
(5) Nonperforming loans and assets excludes loans acquired
with deteriorated credit quality |
(6)
Excludes mortgage warehouse purchase loans. |
|
|
|
Independent Bank Group, Inc. and Subsidiaries |
Consolidated Statements of Income |
Three and
Six Months Ended June 30, 2018 and 2017 |
(Dollars
in thousands) |
(Unaudited) |
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Interest
income: |
|
|
|
|
|
|
|
|
Interest
and fees on loans |
|
$ |
91,614 |
|
|
$ |
75,194 |
|
|
$ |
174,889 |
|
|
$ |
128,938 |
|
Interest
on taxable securities |
|
3,501 |
|
|
2,303 |
|
|
6,404 |
|
|
3,067 |
|
Interest
on nontaxable securities |
|
1,179 |
|
|
992 |
|
|
2,372 |
|
|
1,533 |
|
Interest
on interest-bearing deposits and other |
|
788 |
|
|
1,394 |
|
|
1,531 |
|
|
2,284 |
|
Total interest
income |
|
97,082 |
|
|
79,883 |
|
|
185,196 |
|
|
135,822 |
|
Interest
expense: |
|
|
|
|
|
|
|
|
Interest
on deposits |
|
12,827 |
|
|
6,981 |
|
|
22,626 |
|
|
12,010 |
|
Interest
on FHLB advances |
|
2,847 |
|
|
1,351 |
|
|
4,733 |
|
|
2,522 |
|
Interest
on repurchase agreements and other borrowings |
|
2,097 |
|
|
1,716 |
|
|
4,199 |
|
|
3,421 |
|
Interest
on junior subordinated debentures |
|
402 |
|
|
335 |
|
|
762 |
|
|
502 |
|
Total interest
expense |
|
18,173 |
|
|
10,383 |
|
|
32,320 |
|
|
18,455 |
|
Net interest
income |
|
78,909 |
|
|
69,500 |
|
|
152,876 |
|
|
117,367 |
|
Provision
for loan losses |
|
2,730 |
|
|
2,472 |
|
|
5,425 |
|
|
4,495 |
|
Net interest
income after provision for loan losses |
|
76,179 |
|
|
67,028 |
|
|
147,451 |
|
|
112,872 |
|
Noninterest
income: |
|
|
|
|
|
|
|
|
Service
charges on deposit accounts |
|
3,533 |
|
|
3,760 |
|
|
7,018 |
|
|
5,687 |
|
Mortgage
banking revenue |
|
3,609 |
|
|
5,019 |
|
|
7,023 |
|
|
6,286 |
|
Gain
(loss) on sale of other real estate |
|
58 |
|
|
(36 |
) |
|
118 |
|
|
(36 |
) |
(Loss)
gain on sale of securities available for sale |
|
(10 |
) |
|
52 |
|
|
(234 |
) |
|
52 |
|
(Loss)
gain on sale of premises and equipment |
|
(89 |
) |
|
1 |
|
|
(97 |
) |
|
6 |
|
Increase
in cash surrender value of BOLI |
|
758 |
|
|
782 |
|
|
1,497 |
|
|
1,181 |
|
Other |
|
2,274 |
|
|
1,417 |
|
|
4,263 |
|
|
2,402 |
|
Total
noninterest income |
|
10,133 |
|
|
10,995 |
|
|
19,588 |
|
|
15,578 |
|
Noninterest
expense: |
|
|
|
|
|
|
|
|
Salaries
and employee benefits |
|
26,790 |
|
|
27,089 |
|
|
51,958 |
|
|
43,926 |
|
Occupancy |
|
6,018 |
|
|
6,147 |
|
|
11,682 |
|
|
10,019 |
|
Data
processing |
|
2,467 |
|
|
2,615 |
|
|
4,872 |
|
|
3,903 |
|
FDIC
assessment |
|
712 |
|
|
1,201 |
|
|
1,453 |
|
|
2,079 |
|
Advertising and public relations |
|
332 |
|
|
317 |
|
|
717 |
|
|
614 |
|
Communications |
|
793 |
|
|
852 |
|
|
1,734 |
|
|
1,327 |
|
Other
real estate owned expenses, net |
|
119 |
|
|
125 |
|
|
209 |
|
|
162 |
|
Impairment of other real estate |
|
— |
|
|
120 |
|
|
85 |
|
|
120 |
|
Core
deposit intangible amortization |
|
1,393 |
|
|
1,410 |
|
|
2,724 |
|
|
1,902 |
|
Professional fees |
|
1,133 |
|
|
1,166 |
|
|
2,252 |
|
|
1,939 |
|
Acquisition expense, including legal |
|
3,444 |
|
|
5,673 |
|
|
3,989 |
|
|
5,819 |
|
Other |
|
5,957 |
|
|
4,613 |
|
|
12,441 |
|
|
7,546 |
|
Total
noninterest expense |
|
49,158 |
|
|
51,328 |
|
|
94,116 |
|
|
79,356 |
|
Income before
taxes |
|
37,154 |
|
|
26,695 |
|
|
72,923 |
|
|
49,094 |
|
Income
tax expense |
|
7,519 |
|
|
8,561 |
|
|
14,324 |
|
|
15,289 |
|
Net
income |
|
$ |
29,635 |
|
|
$ |
18,134 |
|
|
$ |
58,599 |
|
|
$ |
33,805 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent
Bank Group, Inc. and Subsidiaries |
Consolidated Balance Sheets |
As of
June 30, 2018 and December 31, 2017 |
(Dollars in
thousands) |
(Unaudited) |
|
|
June 30, |
|
December 31, |
Assets |
2018 |
|
2017 |
Cash and due from
banks |
$ |
321,241 |
|
|
$ |
187,574 |
|
Interest-bearing
deposits in other banks |
125,808 |
|
|
243,528 |
|
Cash and cash equivalents |
447,049 |
|
|
431,102 |
|
Certificates of deposit
held in other banks |
1,225 |
|
|
12,985 |
|
Securities available
for sale, at fair value |
791,065 |
|
|
763,002 |
|
Loans held for
sale |
30,056 |
|
|
39,202 |
|
Loans, net |
7,598,644 |
|
|
6,432,273 |
|
Premises and equipment,
net |
155,187 |
|
|
147,835 |
|
Other real estate
owned |
4,200 |
|
|
7,126 |
|
Federal Home Loan Bank
(FHLB) of Dallas stock and other restricted stock |
39,003 |
|
|
29,184 |
|
Bank-owned life
insurance (BOLI) |
127,848 |
|
|
113,170 |
|
Deferred tax asset |
14,790 |
|
|
9,763 |
|
Goodwill |
721,578 |
|
|
621,458 |
|
Core deposit
intangible, net |
48,052 |
|
|
43,244 |
|
Other assets |
38,340 |
|
|
34,119 |
|
Total assets |
$ |
10,017,037 |
|
|
$ |
8,684,463 |
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
Deposits: |
|
|
|
Noninterest-bearing |
$ |
2,170,639 |
|
|
$ |
1,907,770 |
|
Interest-bearing |
5,362,766 |
|
|
4,725,052 |
|
Total deposits |
7,533,405 |
|
|
6,632,822 |
|
FHLB advances |
750,626 |
|
|
530,667 |
|
Other borrowings |
137,098 |
|
|
136,911 |
|
Junior subordinated
debentures |
27,753 |
|
|
27,654 |
|
Other liabilities |
29,886 |
|
|
20,391 |
|
Total liabilities |
8,478,768 |
|
|
7,348,445 |
|
Commitments and
contingencies |
|
|
|
Stockholders’
equity: |
|
|
|
Preferred
stock |
— |
|
|
— |
|
Common
stock |
305 |
|
|
283 |
|
Additional paid-in capital |
1,312,432 |
|
|
1,151,990 |
|
Retained
earnings |
235,689 |
|
|
184,232 |
|
Accumulated other comprehensive loss |
(10,157 |
) |
|
(487 |
) |
Total stockholders’ equity |
1,538,269 |
|
|
1,336,018 |
|
Total liabilities and stockholders’ equity |
$ |
10,017,037 |
|
|
$ |
8,684,463 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent Bank Group, Inc. and Subsidiaries |
Consolidated Average Balance Sheet Amounts, Interest Earned and
Yield Analysis |
Three
Months Ended June 30, 2018 and 2017 |
(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, |
|
|
2018 |
|
2017 |
|
|
Average Outstanding Balance |
|
Interest |
|
Yield/ Rate (3) |
|
Average Outstanding Balance |
|
Interest |
|
Yield/ Rate (3) |
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans
(1) |
|
$ |
7,021,447 |
|
|
$ |
91,614 |
|
|
5.23 |
% |
|
$ |
6,166,878 |
|
|
$ |
75,194 |
|
|
4.89 |
% |
Taxable
securities |
|
605,009 |
|
|
3,501 |
|
|
2.32 |
|
|
533,690 |
|
|
2,303 |
|
|
1.73 |
|
Nontaxable securities |
|
183,043 |
|
|
1,179 |
|
|
2.58 |
|
|
161,402 |
|
|
992 |
|
|
2.47 |
|
Interest-bearing deposits and other |
|
154,986 |
|
|
788 |
|
|
2.04 |
|
|
460,511 |
|
|
1,394 |
|
|
1.21 |
|
Total interest-earning assets |
|
7,964,485 |
|
|
$ |
97,082 |
|
|
4.89 |
|
|
7,322,481 |
|
|
$ |
79,883 |
|
|
4.38 |
|
Noninterest-earning assets |
|
1,200,430 |
|
|
|
|
|
|
1,155,879 |
|
|
|
|
|
Total assets |
|
$ |
9,164,915 |
|
|
|
|
|
|
$ |
8,478,360 |
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Checking
accounts |
|
$ |
2,959,101 |
|
|
$ |
6,217 |
|
|
0.84 |
% |
|
$ |
2,351,619 |
|
|
$ |
2,560 |
|
|
0.44 |
% |
Savings
accounts |
|
284,103 |
|
|
136 |
|
|
0.19 |
|
|
309,369 |
|
|
97 |
|
|
0.13 |
|
Money
market accounts |
|
884,630 |
|
|
3,889 |
|
|
1.76 |
|
|
993,663 |
|
|
1,936 |
|
|
0.78 |
|
Certificates of deposit |
|
893,931 |
|
|
2,585 |
|
|
1.16 |
|
|
1,153,990 |
|
|
2,388 |
|
|
0.83 |
|
Total deposits |
|
5,021,765 |
|
|
12,827 |
|
|
1.02 |
|
|
4,808,641 |
|
|
6,981 |
|
|
0.58 |
|
FHLB
advances |
|
563,875 |
|
|
2,847 |
|
|
2.03 |
|
|
460,713 |
|
|
1,351 |
|
|
1.18 |
|
Other
borrowings and repurchase agreements |
|
137,843 |
|
|
2,097 |
|
|
6.10 |
|
|
124,177 |
|
|
1,716 |
|
|
5.54 |
|
Junior
subordinated debentures |
|
27,736 |
|
|
402 |
|
|
5.81 |
|
|
27,506 |
|
|
335 |
|
|
4.89 |
|
Total interest-bearing liabilities |
|
5,751,219 |
|
|
18,173 |
|
|
1.27 |
|
|
5,421,037 |
|
|
10,383 |
|
|
0.77 |
|
Noninterest-bearing checking accounts |
|
1,973,582 |
|
|
|
|
|
|
1,787,955 |
|
|
|
|
|
Noninterest-bearing liabilities |
|
21,578 |
|
|
|
|
|
|
26,037 |
|
|
|
|
|
Stockholders’ equity |
|
1,418,536 |
|
|
|
|
|
|
1,243,331 |
|
|
|
|
|
Total liabilities and equity |
|
$ |
9,164,915 |
|
|
|
|
|
|
$ |
8,478,360 |
|
|
|
|
|
Net interest
income |
|
|
|
$ |
78,909 |
|
|
|
|
|
|
$ |
69,500 |
|
|
|
Interest rate
spread |
|
|
|
|
|
3.62 |
% |
|
|
|
|
|
3.61 |
% |
Net interest
margin (2) |
|
|
|
|
|
3.97 |
|
|
|
|
|
|
3.81 |
|
Net interest
income and margin (tax equivalent basis) (4) |
|
|
|
$ |
79,324 |
|
|
3.99 |
|
|
|
|
$ |
70,201 |
|
|
3.85 |
|
Average
interest earning assets to interest bearing
liabilities |
|
|
|
|
|
138.48 |
|
|
|
|
|
|
135.08 |
|
|
(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)
Yield and rates for the three month periods are annualized. |
(4)
A tax-equivalent adjustment has been computed using a federal
income tax rate of 21% and 35% for the three months ended
June 30, 2018 and 2017, respectively. |
|
|
|
Independent Bank Group, Inc. and Subsidiaries |
Consolidated Average Balance Sheet Amounts, Interest Earned and
Yield Analysis |
Six Months
Ended June 30, 2018 and 2017 |
(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, 2018 |
|
|
2018 |
|
2017 |
|
|
Average Outstanding Balance |
|
Interest |
|
Yield/ Rate (3) |
|
Average Outstanding Balance |
|
Interest |
|
Yield/ Rate (3) |
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans
(1) |
|
$ |
6,730,278 |
|
|
$ |
174,889 |
|
|
5.24 |
% |
|
$ |
5,403,638 |
|
|
$ |
128,938 |
|
|
4.81 |
% |
Taxable
securities |
|
596,779 |
|
|
6,404 |
|
|
2.16 |
|
|
389,060 |
|
|
3,067 |
|
|
1.59 |
|
Nontaxable securities |
|
186,219 |
|
|
2,372 |
|
|
2.57 |
|
|
121,807 |
|
|
1,533 |
|
|
2.54 |
|
Interest-bearing deposits and other |
|
161,808 |
|
|
1,531 |
|
|
1.91 |
|
|
399,611 |
|
|
2,284 |
|
|
1.15 |
|
Total interest-earning assets |
|
7,675,084 |
|
|
$ |
185,196 |
|
|
4.87 |
|
|
6,314,116 |
|
|
$ |
135,822 |
|
|
4.34 |
|
Noninterest-earning assets |
|
1,187,653 |
|
|
|
|
|
|
872,462 |
|
|
|
|
|
Total assets |
|
$ |
8,862,737 |
|
|
|
|
|
|
$ |
7,186,578 |
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Checking
accounts |
|
$ |
2,938,343 |
|
|
$ |
11,175 |
|
|
0.77 |
% |
|
$ |
2,153,035 |
|
|
$ |
4,726 |
|
|
0.44 |
% |
Savings
accounts |
|
281,849 |
|
|
250 |
|
|
0.18 |
|
|
232,467 |
|
|
163 |
|
|
0.14 |
|
Money
market accounts |
|
802,540 |
|
|
6,511 |
|
|
1.64 |
|
|
781,427 |
|
|
2,992 |
|
|
0.77 |
|
Certificates of deposit |
|
878,263 |
|
|
4,690 |
|
|
1.08 |
|
|
1,001,150 |
|
|
4,129 |
|
|
0.83 |
|
Total deposits |
|
4,900,995 |
|
|
22,626 |
|
|
0.93 |
|
|
4,168,079 |
|
|
12,010 |
|
|
0.58 |
|
FHLB
advances |
|
523,345 |
|
|
4,733 |
|
|
1.82 |
|
|
460,724 |
|
|
2,522 |
|
|
1.10 |
|
Other
borrowings and repurchase agreements |
|
137,821 |
|
|
4,199 |
|
|
6.14 |
|
|
115,813 |
|
|
3,421 |
|
|
5.96 |
|
Junior
subordinated debentures |
|
27,711 |
|
|
762 |
|
|
5.55 |
|
|
22,852 |
|
|
502 |
|
|
4.43 |
|
Total interest-bearing liabilities |
|
5,589,872 |
|
|
32,320 |
|
|
1.17 |
|
|
4,767,468 |
|
|
18,455 |
|
|
0.78 |
|
Noninterest-bearing checking accounts |
|
1,871,129 |
|
|
|
|
|
|
1,432,802 |
|
|
|
|
|
Noninterest-bearing liabilities |
|
18,699 |
|
|
|
|
|
|
22,374 |
|
|
|
|
|
Stockholders’ equity |
|
1,383,037 |
|
|
|
|
|
|
963,934 |
|
|
|
|
|
Total liabilities and equity |
|
$ |
8,862,737 |
|
|
|
|
|
|
$ |
7,186,578 |
|
|
|
|
|
Net interest
income |
|
|
|
$ |
152,876 |
|
|
|
|
|
|
$ |
117,367 |
|
|
|
Interest rate
spread |
|
|
|
|
|
3.70 |
% |
|
|
|
|
|
3.56 |
% |
Net interest
margin (2) |
|
|
|
|
|
4.02 |
|
|
|
|
|
|
3.75 |
|
Net interest
income and margin (tax equivalent basis) (4) |
|
|
|
$ |
153,746 |
|
|
4.04 |
|
|
|
|
$ |
118,472 |
|
|
3.78 |
|
Average
interest earning assets to interest bearing
liabilities |
|
|
|
|
|
137.30 |
|
|
|
|
|
|
132.44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
Yield and rates for the six month periods are annualized. |
(4)
A tax-equivalent adjustment has been computed using a federal
income tax rate of 21% and 35% for the six months ended
June 30, 2018 and 2017, respectively. |
|
|
|
Independent Bank Group, Inc. and Subsidiaries |
Loan
Portfolio Composition |
As of
June 30, 2018 and December 31, 2017 |
(Dollars
in thousands) |
(Unaudited) |
|
|
|
|
|
Totals loans by category |
|
|
|
|
|
|
June 30, 2018 |
|
December 31, 2017 |
|
|
Amount |
|
% of Total |
|
Amount |
|
% of Total |
Commercial (1) |
|
$ |
1,316,420 |
|
|
17.1 |
% |
|
$ |
1,059,984 |
|
|
16.3 |
% |
Real estate: |
|
|
|
|
|
|
|
|
Commercial real estate |
|
3,944,306 |
|
|
51.4 |
|
|
3,369,892 |
|
|
51.7 |
|
Commercial construction, land and land development |
|
919,564 |
|
|
12.0 |
|
|
744,868 |
|
|
11.5 |
|
Residential real estate (2) |
|
1,028,765 |
|
|
13.4 |
|
|
931,495 |
|
|
14.3 |
|
Single-family interim construction |
|
347,801 |
|
|
4.5 |
|
|
289,680 |
|
|
4.4 |
|
Agricultural |
|
81,866 |
|
|
1.1 |
|
|
82,583 |
|
|
1.3 |
|
Consumer |
|
35,818 |
|
|
0.5 |
|
|
34,639 |
|
|
0.5 |
|
Other |
|
283 |
|
|
— |
|
|
304 |
|
|
— |
|
Total
loans |
|
7,674,823 |
|
|
100.0 |
% |
|
6,513,445 |
|
|
100.0 |
% |
Deferred loan fees |
|
(2,815 |
) |
|
|
|
(2,568 |
) |
|
|
Allowance for loan
losses |
|
(43,308 |
) |
|
|
|
(39,402 |
) |
|
|
Total loans,
net |
|
$ |
7,628,700 |
|
|
|
|
$ |
6,471,475 |
|
|
|
(1)
Includes mortgage warehouse purchase loans of $164,790 and $164,694
at June 30, 2018 and December 31, 2017, respectively. |
(2)
Includes loans held for sale at June 30, 2018 and December 31, 2017
of $30,056 and $39,202, respectively. |
|
|
|
Independent Bank Group, Inc. and Subsidiaries |
Reconciliation of Non-GAAP Financial Measures |
Three
Months Ended June 30, 2018, March 31, 2018, December 31, 2017,
September 30, 2017 and June 30, 2017 |
(Dollars
in thousands, except for share data) |
(Unaudited) |
|
|
|
|
|
For the Three Months Ended |
|
|
June 30, 2018 |
March 31, 2018 |
December 31, 2017 |
September 30, 2017 |
June 30, 2017 |
ADJUSTED NET INCOME |
|
|
|
|
|
|
Net Interest
Income - Reported |
(a) |
$ |
78,909 |
|
$ |
73,967 |
|
$ |
75,254 |
|
$ |
72,857 |
|
$ |
69,500 |
|
Income
recognized on acquired loans |
|
(954 |
) |
(739 |
) |
(2,463 |
) |
(905 |
) |
(572 |
) |
Adjusted Net
Interest Income |
(b) |
77,955 |
|
73,228 |
|
72,791 |
|
71,952 |
|
68,928 |
|
Provision
Expense - Reported |
(c) |
2,730 |
|
2,695 |
|
1,897 |
|
1,873 |
|
2,472 |
|
Noninterest
Income - Reported |
(d) |
10,133 |
|
9,455 |
|
13,579 |
|
12,130 |
|
10,995 |
|
Gain on
sale of loans |
|
— |
|
— |
|
— |
|
(338 |
) |
(13 |
) |
(Gain)
loss on sale of branch |
|
— |
|
— |
|
(3,044 |
) |
127 |
|
— |
|
(Gain)
loss on sale of OREO and repossessed assets |
|
(58 |
) |
(60 |
) |
(876 |
) |
— |
|
26 |
|
Loss
(gain) on sale of securities |
|
10 |
|
224 |
|
(72 |
) |
— |
|
(52 |
) |
Loss
(gain) on sale of premises and equipment |
|
89 |
|
8 |
|
6 |
|
21 |
|
(1 |
) |
Recoveries on loans charged off prior to acquisition |
|
(336 |
) |
(287 |
) |
(65 |
) |
(994 |
) |
(123 |
) |
Adjusted
Noninterest Income |
(e) |
9,838 |
|
9,340 |
|
9,528 |
|
10,946 |
|
10,832 |
|
Noninterest
Expense - Reported |
(f) |
49,158 |
|
44,958 |
|
49,553 |
|
47,904 |
|
51,328 |
|
OREO
Impairment |
|
— |
|
(85 |
) |
(375 |
) |
(917 |
) |
(120 |
) |
IPO
related stock grants |
|
(11 |
) |
(125 |
) |
(128 |
) |
(128 |
) |
(127 |
) |
Acquisition Expense (4) |
|
(4,296 |
) |
(974 |
) |
(6,509 |
) |
(3,013 |
) |
(7,278 |
) |
Adjusted
Noninterest Expense |
(g) |
44,851 |
|
43,774 |
|
42,541 |
|
43,846 |
|
43,803 |
|
Adjusted Net
Income (1) |
(b) - (c) + (e) -
(g) |
$ |
32,239 |
|
$ |
29,231 |
|
$ |
25,313 |
|
$ |
24,829 |
|
$ |
22,746 |
|
|
|
|
|
|
|
|
ADJUSTED PROFITABILITY |
|
|
|
|
|
|
Adjusted Return
on Average Assets (2) |
|
1.41 |
% |
1.37 |
% |
1.15 |
% |
1.13 |
% |
1.08 |
% |
Adjusted Return
on Average Equity (2) |
|
9.12 |
% |
8.80 |
% |
7.64 |
% |
7.74 |
% |
7.34 |
% |
Adjusted Return
on Tangible Equity (2) |
|
17.94 |
% |
17.34 |
% |
15.46 |
% |
15.96 |
% |
15.64 |
% |
Total Average
Assets |
|
$ |
9,164,915 |
|
$ |
8,675,596 |
|
$ |
8,702,597 |
|
$ |
8,726,847 |
|
$ |
8,478,360 |
|
Total Average
Stockholders' Equity |
|
$ |
1,418,536 |
|
$ |
1,347,401 |
|
$ |
1,314,955 |
|
$ |
1,271,950 |
|
$ |
1,243,331 |
|
Total Average Tangible
Stockholders' Equity (3) |
|
$ |
720,653 |
|
$ |
683,525 |
|
$ |
649,541 |
|
$ |
617,115 |
|
$ |
583,303 |
|
|
|
|
|
|
|
|
EFFICIENCY RATIO |
|
|
|
|
|
|
Amortization of core
deposit intangibles |
(h) |
$ |
1,393 |
|
$ |
1,331 |
|
$ |
1,328 |
|
$ |
1,409 |
|
$ |
1,410 |
|
Reported
Efficiency Ratio |
(f - h) / (a + d) |
53.64 |
% |
52.30 |
% |
54.29 |
% |
54.71 |
% |
62.01 |
% |
Adjusted
Efficiency Ratio |
(g - h) / (b + e) |
49.50 |
% |
51.40 |
% |
50.06 |
% |
51.19 |
% |
53.15 |
% |
|
|
|
|
|
|
|
(1)
Assumes an effective tax rate of 19.8%, 19.0%, 33.2%, 33.2%
and 32.1% for the quarters ended June 30, 2018, March 31, 2018,
December 31, 2017, September 30, 2017, and June 30, 2017,
respectively. The quarter ended June 30, 2018 excludes $152
thousand of nondeductible acquisition expense and the quarter ended
December 31, 2017 excludes $5,528 thousand charge to remeasure
deferred taxes as a result of the enactment of the Tax Cuts and
Jobs Act and $259 thousand of nondeductible tax expense. |
(2)
Calculated using adjusted net income |
(3)
Excludes average balance of goodwill and net core deposit
intangibles. |
(4)
Acquisition expenses include $852 thousand, $429 thousand, $1,858
thousand, $585 thousand and $1,605 thousand, of compensation and
bonus expenses in addition to $3,444 thousand, $545 thousand,
$4,651 thousand, $2,428 thousand and $5,673 thousand of
merger-related expenses for the quarters ended June 30, 2018, March
31, 2018, December 31, 2017, September 30, 2017 and June 30, 2017,
respectively. |
|
|
|
Independent
Bank Group, Inc. and Subsidiaries |
Reconciliation of Non-GAAP Financial Measures |
As of
June 30, 2018 and December 31, 2017 |
(Dollars in
thousands, except per share information) |
(Unaudited) |
|
|
|
|
Tangible Book
Value & Tangible Common Equity To Tangible Asset
Ratio |
|
|
|
|
June 30, |
|
December 31, |
|
2018 |
|
2017 |
Tangible Common
Equity |
|
|
|
Total common
stockholders' equity |
$ |
1,538,269 |
|
|
$ |
1,336,018 |
|
Adjustments: |
|
|
|
Goodwill |
(721,578 |
) |
|
(621,458 |
) |
Core
deposit intangibles, net |
(48,052 |
) |
|
(43,244 |
) |
Tangible common
equity |
$ |
768,639 |
|
|
$ |
671,316 |
|
|
|
|
|
Tangible
Assets |
|
|
|
Total assets |
$ |
10,017,037 |
|
|
$ |
8,684,463 |
|
Adjustments: |
|
|
|
Goodwill |
$ |
(721,578 |
) |
|
$ |
(621,458 |
) |
Core
deposit intangibles |
$ |
(48,052 |
) |
|
$ |
(43,244 |
) |
Tangible
assets |
$ |
9,247,407 |
|
|
$ |
8,019,761 |
|
Common shares
outstanding |
30,468,413 |
|
|
28,254,893 |
|
Tangible common equity
to tangible assets |
8.31 |
% |
|
8.37 |
% |
Book value per common
share |
$ |
50.49 |
|
|
$ |
47.28 |
|
Tangible book value per
common share |
25.23 |
|
|
23.76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent Bank (NASDAQ:IBTX)
Historical Stock Chart
From Aug 2024 to Sep 2024
Independent Bank (NASDAQ:IBTX)
Historical Stock Chart
From Sep 2023 to Sep 2024