Independent Bank Group, Inc. (NASDAQ:IBTX) Q4 2021 Earnings Conference Call January 25, 2022 8:30 AM ET Company Participants David Brooks - Chairman & CEO Dan Brooks - Vice Chairman Michelle Hickox - EVP & CFO Paul Langdale - EVP, Corporate Development and Strategy Conference Call Participants Brady Gailey - KBW Michael Rose - Raymond James Brad Milsaps - Piper Sandler Matt Olney - Stephens Inc. Brett Rabatin - Hovde Group Operator Greetings, and welcome to the Independent Bank Group Fourth Quarter 2021 Ear ...

Financial Performance - Independent Bank Corporation's pre-tax, pre-provision income was $19 million, compared to $253 million in the year-ago quarter[6] - Net income reached $16 million, or $073 per diluted share, versus $196 million, or $089 per diluted share in the previous year[6] - Net interest income increased to $338 million, compared to $32 million in the same quarter last year[6] - For the first nine months of 2021, net income and diluted earnings per share increased by 286% and 307%, respectively, compared to 2020[11] - The annualized return on average assets and on average equity for the first nine months of 2021 were 153% and 1732%, respectively[11] Mortgage and Loan Activity - Mortgage loan originations totaled $4538 million, with $2792 million in mortgage loans sold, resulting in $84 million in net gains, compared to $202 million in the year-ago quarter[7] - Mortgage servicing rights change (MSR Change) due to price was $06 million ($002 per diluted share, after taxes), compared to a negative $11 million ($004 per diluted share, after taxes) in the previous year[7] - Total portfolio loans increased by $694 million[9] - Mortgage loan originations for the first nine months of 2021 reached $144 billion, with $9634 million in mortgage loans sold and $303 million in net gains, compared to $467 million in net gains in the prior year period[12] Balance Sheet and Capital - Total deposits grew by $1496 million[9] - Net growth in portfolio loans was $1503 million, or 74% annualized[14] - Net growth in deposits was $3747 million, or 138% annualized[14]

PART I. Financial Information [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents unaudited consolidated financial statements, highlighting total assets of **$18.9 billion**, Q3 2021 net income of **$52.3 million**, and the impact of CECL adoption [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (Unaudited) | (In thousands) | Sep 30, 2021 | Dec 31, 2020 | Change (%) | | :--- | :--- | :--- | :--- | | **Total Assets** | **$18,918,225** | **$17,753,476** | **6.6%** | | Cash and cash equivalents | $3,059,826 | $1,813,987 | 68.7% | | Securities available for sale | $1,781,574 | $1,153,693 | 54.4% | | Loans, net | $12,291,233 | $12,978,238 | -5.3% | | **Total Liabilities** | **$16,351,532** | **$15,238,105** | **7.3%** | | Total deposits | $15,524,182 | $14,398,927 | 7.8% | | **Total Stockholders' Equity** | **$2,566,693** | **$2,515,371** | **2.0%** | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Consolidated Income Statement Highlights (Unaudited) | (In thousands, except per share data) | Q3 2021 | Q3 2020 | 9 Months 2021 | 9 Months 2020 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $128,645 | $132,007 | $387,671 | $383,620 | | Provision for credit losses | $0 | $7,620 | $(9,000) | $39,122 | | Noninterest Income | $16,896 | $25,165 | $51,431 | $65,151 | | Noninterest Expense | $80,572 | $73,409 | $233,698 | $230,907 | | **Net Income** | **$52,340** | **$60,075** | **$170,563** | **$142,935** | | **Diluted EPS** | **$1.21** | **$1.39** | **$3.95** | **$3.31** | [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) - Comprehensive income was **$52.3 million** for Q3 2021, a decrease from **$60.3 million** in Q3 2020 - For the nine months ended September 30, 2021, comprehensive income was **$156.7 million**, compared to **$162.7 million** in the prior-year period, driven by a **$13.8 million** after-tax net unrealized loss on available-for-sale securities[13](index=13&type=chunk) [Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) - For the nine months ended September 30, 2021, stockholders' equity increased from **$2.52 billion** to **$2.57 billion**, reflecting net income of **$170.6 million**, offset by a **$53.9 million** cumulative effect reduction from CECL adoption, cash dividends of **$41.6 million**, and common stock repurchases of **$17.9 million**[15](index=15&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net Cash Flow Summary (Nine Months Ended Sep 30) | (In thousands) | 2021 | 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $209,712 | $86,109 | | Net cash provided by (used in) investing activities | $26,215 | $(1,174,226) | | Net cash provided by financing activities | $1,009,912 | $1,976,680 | | **Net change in cash and cash equivalents** | **$1,245,839** | **$888,563** | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) - The Company adopted ASU 2016-13 (CECL) on January 1, 2021, using the modified retrospective method, resulting in a cumulative effect reduction to retained earnings of **$53.9 million** (net of tax) and an increase in the allowance for credit losses[27](index=27&type=chunk)[29](index=29&type=chunk) - The loan portfolio decreased to **$12.44 billion** at September 30, 2021, from **$13.08 billion** at year-end 2020, primarily due to forgiveness of PPP loans and a decline in mortgage warehouse loans[54](index=54&type=chunk)[204](index=204&type=chunk) - Nonperforming loans increased to **$82.7 million** (**0.72%** of total loans held for investment) at September 30, 2021, from **$51.4 million** (**0.44%**) at December 31, 2020[75](index=75&type=chunk)[218](index=218&type=chunk) - The Company utilizes various derivative instruments, including interest rate swaps and forward mortgage-backed securities trades, for hedging interest rate risk and managing mortgage banking activities[126](index=126&type=chunk)[130](index=130&type=chunk)[131](index=131&type=chunk) - The Company and its subsidiary Bank meet all regulatory capital adequacy requirements to be considered 'well capitalized' as of September 30, 2021[150](index=150&type=chunk)[151](index=151&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=46&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, noting a **6.6%** asset increase to **$18.9 billion**, Q3 2021 net income of **$52.3 million**, net interest margin compression, and increased nonperforming loans, while maintaining strong capital [Results of Operations](index=50&type=section&id=Results%20of%20Operations) Key Performance Metrics | Metric | Q3 2021 | Q3 2020 | 9 Months 2021 | 9 Months 2020 | | :--- | :--- | :--- | :--- | :--- | | Net Income (in millions) | $52.3 | $60.1 | $170.6 | $142.9 | | Diluted EPS | $1.21 | $1.39 | $3.95 | $3.31 | | Return on Average Assets (ROA) | 1.11% | 1.43% | 1.25% | 1.19% | | Return on Average Equity (ROE) | 8.10% | 9.73% | 9.04% | 7.91% | | Net Interest Margin (NIM) | 3.01% | 3.52% | 3.14% | 3.59% | - Q3 2021 net interest income decreased by **2.5%** YoY to **$128.6 million**, with the net interest margin compressing by **51 basis points** to **3.01%** due to lower asset yields, increased liquidity, and a **$3.2 million** decrease in loan accretion income[178](index=178&type=chunk) - The company recorded a negative provision for credit losses on loans of **$4.4 million** in Q3 2021, compared to a **$7.6 million** provision in Q3 2020, primarily due to improvements in the economic forecast[188](index=188&type=chunk) - Total noninterest income decreased by **32.9%** in Q3 2021 compared to Q3 2020, driven by an **$8.7 million** (**59.4%**) drop in mortgage banking revenue due to lower volumes and losses on hedging instruments[191](index=191&type=chunk)[192](index=192&type=chunk) - Total noninterest expense increased by **9.8%** in Q3 2021 YoY, mainly due to a **$4.3 million** increase in salaries and employee benefits from higher headcount and contract labor costs for various projects[194](index=194&type=chunk)[195](index=195&type=chunk) [Financial Condition](index=56&type=section&id=Financial%20Condition) - Total assets grew by **$1.2 billion** (**6.6%**) to **$18.9 billion** at September 30, 2021, from year-end 2020, mainly from an increase in interest-bearing deposits and investment securities[203](index=203&type=chunk) - Total loans decreased by **5.7%** to **$12.3 billion**, primarily due to a **$476.0 million** decline in mortgage warehouse loans and a **$560.5 million** decrease in SBA PPP loans from forgiveness[204](index=204&type=chunk) - Nonperforming assets increased to **$82.8 million** (**0.44%** of total assets) from **$52.0 million** (**0.29%** of total assets) at year-end 2020, mainly driven by two commercial loan relationships and one commercial real estate loan moving to nonaccrual status[216](index=216&type=chunk)[218](index=218&type=chunk) - The allowance for credit losses on loans increased to **$150.3 million** (**1.31%** of loans held for investment, excluding warehouse) from **$87.8 million** (**0.76%**) at year-end 2020, largely due to the day-one CECL adoption impact of **$80.9 million**[220](index=220&type=chunk) - Total stockholder's equity increased by **$51.3 million** to **$2.6 billion** since year-end 2020, reflecting net income of **$170.6 million**, offset by the CECL adjustment, dividends, and stock repurchases[225](index=225&type=chunk) [Liquidity and Capital Resources](index=61&type=section&id=Liquidity%20and%20Capital%20Resources) - The company maintains a strong liquidity position with multiple sources, including cash flow from operations, liquid assets, and access to alternative funding, with additional borrowing capacity of **$3.9 billion** with the FHLB and **$796.3 million** with the Federal Reserve Bank as of September 30, 2021[228](index=228&type=chunk)[229](index=229&type=chunk) - On July 20, 2021, the Company redeemed **$40 million** of its **5.75%** fixed-to-floating rate subordinated debentures due in 2026[87](index=87&type=chunk)[231](index=231&type=chunk) - The company's board authorized a **$150 million** stock repurchase program, extended through December 31, 2021, under which **351,069 shares** were repurchased for **$22.5 million** through October 26, 2021[226](index=226&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=62&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company manages interest rate risk, with its balance sheet in an asset-sensitive position as of September 30, 2021, projecting increased net interest income in a rising rate environment due to higher interest-bearing deposits Interest Rate Sensitivity Analysis on Net Interest Income (as of Sep 30, 2021) | Hypothetical Shift in Interest Rates (bps) | % Change in Projected Net Interest Income | | :--- | :--- | | +200 | 15.46% | | +100 | 7.33% | | -100 | (3.71)% | - The company's interest rate risk model indicates an asset-sensitive position as of September 30, 2021, which is more asset-sensitive than in prior periods, primarily due to an increased proportion of interest-bearing deposits, which are more immediately impacted by rate changes[255](index=255&type=chunk) [Controls and Procedures](index=63&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded the company's disclosure controls and procedures were effective as of September 30, 2021, with no material changes to internal controls during the quarter - The CEO and CFO concluded that the Company's disclosure controls and procedures are effective in providing reasonable assurance that information required to be disclosed is recorded, processed, summarized, and reported in a timely manner[257](index=257&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal controls[259](index=259&type=chunk) PART II. Other Information [Legal Proceedings](index=64&type=section&id=Item%201.%20Legal%20Proceedings) The company is vigorously defending a class action lawsuit inherited from the Bank of Houston acquisition, alleging aid in the Stanford International Bank fraud, with uncertain outcome and costs - The Bank is a defendant in a class action lawsuit related to the R.A. Stanford fraud, inherited from the acquisition of Bank of Houston (BOH), with plaintiffs alleging BOH aided and abetted the scheme[263](index=263&type=chunk) - The company believes the claims are without merit and is vigorously defending the case, though the ultimate outcome, timing, and potential costs remain uncertain[266](index=266&type=chunk) [Risk Factors](index=65&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2020 - The report refers investors to the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2020, for a comprehensive discussion of risks[267](index=267&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=65&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company has an active **$150.0 million** stock repurchase program, extended through December 31, 2021, with **232,069 shares** repurchased in Q3 2021 at an average price of **$70.02** per share Share Repurchase Activity (Q3 2021) | Month | Total Shares Purchased | Average Price Paid Per Share | Shares Purchased as Part of Plan | | :--- | :--- | :--- | :--- | | July 2021 | 56,714 | $70.78 | 43,785 | | August 2021 | 174,999 | $69.77 | 173,987 | | September 2021 | 356 | $67.80 | 0 | | **Total Q3 2021** | **232,069** | **$70.02** | **217,772** | - As of September 30, 2021, the maximum dollar value of shares that may yet be purchased under the plan is approximately **$129.1 million**[269](index=269&type=chunk) [Other Items (3, 4, 5, 6)](index=65&type=section&id=Other%20Items%20%283%2C%204%2C%205%2C%206%29) This section confirms no defaults on senior securities, no mine safety disclosures, no other material information under Item 5, and lists exhibits including CEO/CFO certifications - Item 3, Defaults Upon Senior Securities: None[270](index=270&type=chunk) - Item 4, Mine Safety Disclosures: Not applicable[270](index=270&type=chunk) - Item 5, Other Information: None[271](index=271&type=chunk) - Item 6, Exhibits: Lists documents filed with the report, including CEO/CFO certifications (Exhibits 31.1, 31.2, 32.1, 32.2) and XBRL data files[272](index=272&type=chunk)

Independent Bank Group, Inc. (NASDAQ:IBTX) Q3 2021 Earnings Conference Call October 26, 2021 8:30 AM ET Company Participants Paul Langdale - Executive Vice President, Corporate Development and Strategy David Brooks – Chairman & CEO Michelle Hickox - Executive Vice President & CFO Dan Brooks - Vice Chairman Conference Call Participants Michael Young - Truist Securities Brad Milsaps - Piper Sandler Brady Gailey - KBW Brett Rabatin - Hovde Group Matt Olney - Stephens Disclaimer*: This transcript is designed to ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the quarterly period ended June 30, 2021. or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the transition period from to . Commission file number 001-35854 Independent Bank Group, Inc. (Exact name of registrant as specified in its charter) Texas 13-4219346 (State or other j ...

Financial Data and Key Metrics Changes - The company reported adjusted net income of $58.2 million or $1.35 per diluted share for Q2 2021, compared to $49.1 million or $0.90 per diluted share for the same quarter last year, and $60.1 million or $0.39 per diluted share for the linked quarter [11] - Net interest income was $129.3 million in Q2 2021, slightly up from $128.4 million in Q2 2020 but down from $129.7 million in the linked quarter [11] - The adjusted net interest margin (NIM) excluding loan accretion was 3.02% for Q2 2021, down from 3.29% in Q2 2020 and 3.13% in the linked quarter [13] - Total noninterest income was $15.9 million for Q2 2021, down from $18.6 million in the linked quarter [14] - Noninterest expense totaled $78 million for Q2 2021, an increase of $2.9 million over the linked quarter [15] Business Line Data and Key Metrics Changes - Core loans held for investment increased by $333 million over the linked quarter, totaling $11.6 billion at quarter end [20] - PPP loans on the balance sheet totaled $490.5 million at quarter end, down from $912.2 million in the linked quarter [22] - Non-performing assets represented just 0.29% of total assets at June 30, 2021, with net charge-offs at 13 basis points annualized for the quarter [23] Market Data and Key Metrics Changes - Total deposits were $15.1 billion at quarter end, with total noninterest-bearing deposits increasing by $168 million from the linked quarter [17] - The common equity tier one capital ratio increased by 20 basis points to 11.14% and the total capital ratio increased by 10 basis points to 14.23% for the quarter [18] Company Strategy and Development Direction - The company anticipates high single-digit loan growth for the remainder of the year, supported by strong economic conditions in Texas and Colorado [25] - The company remains committed to disciplined execution of its strategy to grow opportunistically, especially in strong markets [26] - The company is exploring strategic M&A opportunities as they arise, while also focusing on organic growth [25][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the loan growth for the quarter, attributing it to increased production rather than reductions in payoffs or pay downs [37] - The management noted that the current economic environment is favorable, with no immediate pressure to pursue M&A aggressively [76] - Management indicated that they expect no new provisions for credit losses in the latter half of the year, contingent on economic conditions [89] Other Important Information - The board has elected to raise the dividend to $0.34 per share, reflecting the company's philosophy of providing returns to shareholders [10] - The company is actively monitoring its liquidity levels, aiming to reduce excess cash while being cautious about potential unrealized losses in the investment portfolio [63] Q&A Session Summary Question: Expense outlook and expected run rate - Management expects occupancy expenses to decrease, while PPP consulting fees will remain elevated, projecting a run rate of $76.5 million to $77 million [30] Question: Loan growth and balance sheet strategy - Management plans to deploy excess cash into the securities portfolio while monitoring loan growth [32] Question: Loan growth outlook and competitive pressures - Management anticipates a slight pullback in loan growth in Q3 but expects acceleration in Q4, with strong production across various loan types [37][39] Question: Dividend policy and future increases - The board is considering whether the current 25% payout ratio is appropriate, with a bias towards increasing dividends in the future [47] Question: M&A environment and seller expectations - Management noted that elevated seller expectations and stock price volatility are hindering M&A activity [51] Question: Mortgage warehouse balances and outlook - Management expects mortgage warehouse balances to settle around $800 million for the remainder of the year due to competitive pressures [61] Question: C&I loan growth drivers - Management highlighted broad-based growth in C&I loans, driven by new team additions and market share gains [82] Question: Reserve levels and future provisions - Management indicated no new provisions are expected in the latter half of the year, contingent on economic conditions [89]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the quarterly period ended March 31, 2021. or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the transition period from to . Commission file number 001-35854 Independent Bank Group, Inc. (Exact name of registrant as specified in its charter) Texas 13-4219346 (State or other ...

Independent Bank Group, Inc. (NASDAQ:IBTX) Q1 2021 Earnings Conference Call April 27, 2021 8:30 AM ET Company Participants Paul Langdale - Senior Vice President & Director of Corporate Development David Brooks - Chairman, Chief Executive Officer & President Michelle Hickox - Executive Vice President & Chief Financial Officer Dan Brooks - Vice Chairman & Chief Risk Officer Conference Call Participants Michael Young - Truist Securities Brad Milsaps - Piper Sandler Matt Olney - Stephens Brett Rabatin - Hovde G ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT TO SECTION 13 OR 15(d) OF THE SECURITIES ACT OF 1934 For The Fiscal Year Ended December 31, 2020. ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number 001-35854 Independent Bank Group, Inc. (Exact name of registrant as specified in its charter) Texas 13-4219346 (State or other jurisdiction of incorporatio ...

Independent Bank Group, Inc. (NASDAQ:IBTX) Q4 2020 Earnings Conference Call February 2, 2021 8:30 AM ET Company Participants Paul Langdale - Senior Vice President & Director of Corporate Development David Brooks - Chairman, Chief Executive Officer & President Michelle Hickox - Executive Vice President & Chief Financial Officer Dan Brooks - Vice Chairman & Chief Risk Officer Conference Call Participants Matt Olney - Stephens Inc. Brad Milsaps - Piper Sandler Brady Gailey - KBW Brett Rabatin - Hovde Group Mic ...