Independent Bank (IBTX) - 2024 Q2 - Quarterly Results

Financial Performance - The company recorded a net loss of $493.455 million for the second quarter of 2024, compared to a net income of $24.150 million in the prior quarter[13]. - The company reported a net loss of $493,455 for the three months ended June 30, 2024, compared to a net income of $33,077 for the same period in 2023[15]. - Adjusted net income for the second quarter of 2024 was $24.9 million, a decrease from $32.6 million in the same quarter of 2023[40]. - The company recorded zero provision for credit losses in Q2 2024, compared to a provision expense of $220 thousand in Q2 2023[26]. - The company declared a quarterly cash dividend of $0.38 per share, payable on August 19, 2024[42]. Asset Quality - Nonperforming assets totaled $64.9 million, or 0.35% of total assets as of June 30, 2024, compared to $60.5 million, or 0.32% a year earlier[3]. - Nonperforming loans amounted to $56.1 million, or 0.40% of total loans held for investment at June 30, 2024, up from $37.9 million, or 0.28% a year earlier[3]. - The allowance for credit losses on loans was $145.3 million, or 1.04% of total loans, as of June 30, 2024, compared to 1.08% a year earlier[26]. - The allowance for credit losses on loans to nonperforming loans was $258.83 million as of June 30, 2024, down from $263.85 million in the previous quarter[14]. - The nonperforming asset ratio remained healthy at 0.35%, with a net charge-off ratio of 0.03% over the last twelve months[53]. Income and Expenses - Total noninterest income decreased by $662 thousand compared to the second quarter of 2023, primarily due to a $708 thousand decrease in mortgage banking revenue[5]. - Adjusted noninterest expense increased by $2.1 million in the second quarter of 2024 compared to the prior year, mainly due to higher salaries and benefits[6]. - Total noninterest expense increased by $521.2 million compared to Q2 2023, primarily due to the goodwill impairment charge[25]. - Federal income tax expense for the second quarter of 2024 was $5.1 million, with an effective rate of (1.0)%, down from 20.8% in the prior year quarter[7]. Interest Income and Margin - Net interest income for the second quarter of 2024 was $105.148 million, compared to $113.607 million in the same quarter last year[13]. - Net interest income for the six months ended June 30, 2024, was $208.2 million, down from $241.5 million in the same period of 2023[34]. - The net interest margin for Q2 2024 was 2.45%, compared to 2.94% in Q2 2023[34]. - The net interest margin increased by 5 basis points to 2.47% compared to the previous quarter[53]. - The yield on interest-earning assets increased to 5.62% for the second quarter of 2024, compared to 5.14% in the same quarter of 2023[46]. Capital and Equity - Total stockholders' equity decreased to $1,897,083 as of June 30, 2024, from $2,402,593 as of December 31, 2023[16]. - The company's stockholders' equity decreased to $2,267,289 thousand in June 2024 from $2,360,226 thousand in December 2023, representing a decline of 3.93%[69]. - The estimated common equity Tier 1 capital to risk-weighted assets ratio was 9.69% as of June 30, 2024, up from 9.60% in the previous quarter[14]. - Total capital ratio grew by 7 basis points to 11.75%, while the tangible common equity (TCE) ratio increased by 10 basis points to 7.72%[53]. Strategic Initiatives - The company is focused on executing key strategic initiatives, including a pending merger with SouthState Corporation[43]. - The company announced a pending acquisition by SouthState Corporation on May 20, 2024[53]. - Forward-looking statements indicate potential risks including changes in economic conditions and the impact of the pending merger[51]. Loans and Deposits - Total loans held for investment were $14.0 billion at June 30, 2024, down 2.1% from the previous quarter and up from $13.6 billion year-over-year[44]. - Total deposits reached $15.8 billion as of June 30, 2024, compared to $15.7 billion at March 31, 2024, and $14.9 billion at June 30, 2023[23]. - Total interest-earning assets increased to $17.1 billion in Q2 2024, with a yield of 5.58%, compared to $16.6 billion and a yield of 5.06% in Q2 2023[1].