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Independent Bank Group, Inc. Reports Second Quarter Financial Results and Increases Quarterly Dividend

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MCKINNEY, Texas, July 26, 2021--(BUSINESS WIRE)--Independent Bank Group, Inc. (NASDAQ: IBTX), the holding company for Independent Bank, today announced net income of $58.2 million, or $1.35 per diluted share, for the quarter ended June 30, 2021, compared to $38.7 million, or $0.90 per diluted share, for the quarter ended June 30, 2020 and $60.0 million, or $1.39 per diluted share, for the quarter ended March 31, 2021.

The Company also announced that its Board of Directors increased the quarterly cash dividend to $0.34 per share of common stock. The dividend will be payable on August 19, 2021 to stockholders of record as of the close of business on August 5, 2021.

Highlights

  • Solid organic loan growth of 12.4% annualized for the quarter, (excluding warehouse and PPP)

  • Improved credit metrics with nonperforming assets of 0.29% of total assets

  • Strong capital levels with an estimated total capital ratio of 14.23%, leverage ratio of 9.03%, and (non-GAAP) tangible common equity (TCE) ratio of 8.45%

  • Announced redemption of $40 million in subordinated debentures in July 2021

  • Grew book value by $1.17 per share to $58.89 and tangible book value per share by $1.24 to $33.98

"These second quarter results reflect the accelerating economic recovery across our footprint, with our core loan book growing 12.4% annualized for the quarter as demand rebounded in both Texas and Colorado," said Independent Bank Group Chairman & CEO David R. Brooks. "In addition to broad-based loan growth, we reported healthy earnings, grew tangible book value per share, and maintained resilient credit quality metrics. As we enter the second half of 2021 and look ahead, we will continue to leverage our position of strength in disciplined pursuit of growth opportunities across our great markets."

Second Quarter 2021 Operating Results

Net Interest Income

  • Net interest income was $129.3 million for second quarter 2021 compared to $128.4 million for second quarter 2020 and $129.7 million for first quarter 2021. The slight increase in net interest income from the prior year was driven by decreased funding costs offset by decreased earnings on assets due to lower yields and accretion. The slight decrease from the linked quarter was due primarily to lower accretion income offset by a decrease in interest expense due to lower rates paid primarily on money market accounts and certificates of deposit. The quarter ended June 30, 2021 includes $5.2 million of acquired loan accretion compared to $6.2 million in first quarter 2021 and $7.2 million in second quarter 2020.

  • The average balance of total interest-earning assets grew by $1.8 billion and totaled $16.5 billion for the quarter ended June 30, 2021 compared to $14.7 billion for the quarter ended June 30, 2020 and increased $500.5 million from $16.0 billion for the quarter ended March 31, 2021. The increase for both periods is primarily due to the continued growth of average interest bearing cash balances over the past year, increasing $1.3 billion from prior year and $781.5 million from the linked quarter. Offsetting the linked quarter change is a net decrease in average loan balances, due to both forgiveness of Paycheck Protection Program (PPP) loans as well as a decrease in our average mortgage warehouse loans during the quarter.

  • The yield on interest-earning assets was 3.54% for second quarter 2021 compared to 4.14% for second quarter 2020 and 3.75% for first quarter 2021. The overall asset yield is down for both periods due to the continued increase in lower-yielding interest bearing cash balances mentioned above as well as lower yielding PPP loans and securities for the year over year period. The average loan yield, net of all accretion increased three (3) basis points from the linked quarter compared to a 21 basis point decrease from the prior year.

  • The cost of interest-bearing liabilities, including borrowings, was 0.60% for second quarter 2021 compared to 0.90% for second quarter 2020 and 0.67% for first quarter 2021. The decrease from the prior year and linked quarter is primarily due to lower rates offered on our deposit products, while the prior year change is also due to rate decreases on other borrowings.

  • The net interest margin was 3.14% for second quarter 2021 compared to 3.51% for second quarter 2020 and 3.29% for first quarter 2021. The net interest margin excluding all loan accretion was 3.02% for second quarter 2021 compared to 3.32% in second quarter 2020 and 3.13% for first quarter 2021. The decrease in net interest margin from the prior year was primarily due to the lower asset yields, increased liquidity and a decrease of $1.9 million in loan accretion income offset by the lower cost of funds on interest bearing liabilities. The 11 basis point decrease in the net interest margin excluding all loan accretion from the linked quarter is primarily a result of excess liquidity which negatively impacted the margin by 15 basis points, offset by slightly lower cost of funds of interest bearing liabilities for the quarter.

Noninterest Income

  • Total noninterest income decreased $9.5 million compared to second quarter 2020 and decreased $2.7 million compared to first quarter 2021.

  • The decrease from the prior year primarily reflects decreases of $5.2 million in mortgage banking revenue and $3.9 million in other noninterest income. The decrease in other noninterest income is due to $1.4 million less interchange income due to the Durbin amendment, which was effective July 2020 as well as a $3.5 million acquired loan contingency reserve that was recovered in second quarter 2020 offset by increases of $538 thousand in mortgage warehouse fee income and $559 thousand in miscellaneous income, including a $472 thousand gain on a branch building insurance claim.

  • The decrease from the linked quarter primarily reflects a decrease of $2.3 million in mortgage banking revenue.

  • Mortgage banking revenue was lower in second quarter 2021 compared to prior year and the linked quarter due to decreased volumes and margins resulting from rate increases in 2021. It was also impacted by continued volatility in the market during the quarter, which resulted in fair value losses on our derivative hedging instruments of $700 thousand compared to second quarter 2020 gain of $3.3 million and $333 thousand loss for first quarter 2021.

Noninterest Expense

  • Total noninterest expense decreased $5.1 million compared to second quarter 2020 and increased $2.9 million compared to first quarter 2021.

  • The net decrease in noninterest expense compared to second quarter 2020 is due primarily to a decrease of $15.6 million in acquisition expenses related to the merger termination in second quarter 2020 and other insignificant decreases in the following: $344 thousand in technology and communication expense, $522 thousand in FDIC assessment, $486 thousand in advertising and public relations and $738 thousand in other real estate impairment. The changes above were offset by increases of $9.4 million in salaries and benefits expense, $1.6 million in professional fees and $1.5 million in occupancy expense.

  • The increase from the linked quarter is primarily due to increases of $1.2 million in occupancy expense and $1.4 million in other noninterest expense.

  • The increase in salaries and benefits from the prior year is due primarily to $8.8 million lower deferred salary expense which was elevated in prior year as a result of PPP loans and other COVID-related modifications that occurred during second quarter 2020 and reduced overall salary expense for that period. In addition, there was a decrease of $2.0 million in severance and retention expenses, which were higher in second quarter 2020 due to departmental and business line restructurings. Offsetting those changes were increases of $2.1 million in salaries and insurance expense in the current quarter due to additional headcount, as well as an increase of $712 thousand in contract labor costs due to various departmental and bankwide projects. In addition, the increase in professional fees for the year over year period was due to $982 thousand higher consulting expenses related primarily to the forgiveness of the first round of PPP loans and $739 thousand in legal expenses related to an ongoing acquired litigation.

  • The increase in occupancy expense from the prior year and linked quarter is primarily due to increases in various non-capitalizable small furniture and equipment and building repairs and maintenance expenses.

  • The increase in other noninterest expense from the linked quarter is due to increases of $365 thousand in loan-related expenses, $422 thousand in business meals, entertainment and travel expenses primarily due to returning to work in second quarter 2021 and other small increases in other miscellaneous accounts.

Provision for Credit Losses

  • The Company recorded a negative provision for credit losses of $6.5 million for second quarter 2021, a decrease of $29.6 million compared to $23.1 million provision expense for second quarter 2020 and a decrease of $4.0 million compared to negative provision for credit losses of $2.5 million for first quarter 2021. The credit provision in second quarter 2021 and first quarter 2021 was primarily related to improvements to the economic forecast during 2021 as well as charge-offs or specific reserves taken during the respective period. Provision expense was elevated in the second quarter 2020 primarily due to general provision expense for economic factors related to COVID-19.

  • The allowance for credit losses on loans was $154.8 million, or 1.34% of total loans held for investment, net of mortgage warehouse purchase loans, at June 30, 2021, compared to $80.1 million, or 0.68% at June 30, 2020 and compared to $165.8 million, or 1.42% at March 31, 2021. The dollar and percentage increase from the prior year is primarily due to adjustments to economic factors relating to the COVID-19 pandemic in 2020 as well the Current Expected Credit Losses (CECL) transition adjustment while the increased credit provision from the linked quarter is due primarily to improvements in the economic forecast as mentioned above.

Income Taxes

  • Federal income tax expense of $15.5 million was recorded for the second quarter 2021, an effective rate of 21.0% compared to tax expense of $8.9 million and an effective rate of 18.7% for the prior year quarter and tax expense of $15.7 million and an effective rate of 20.8% for the linked quarter. The lower effective tax rate for the second quarter 2020 was primarily a result of adjustments made related to state income taxes.

Second Quarter 2021 Balance Sheet Highlights

Loans

  • Total loans held for investment, net of mortgage warehouse purchase loans, were $11.6 billion at June 30, 2021 compared to $11.7 billion at March 31, 2021 and June 30, 2020. PPP loans totaled $490.5 million, $912.2 million and $823.3 million as of June 30, 2021, March 31, 2021 and June 30, 2020, respectively. Loans excluding PPP loans and net of loan sales, increased $333.1 million, or 12.4% on an annualized basis, during second quarter 2021.

  • Average mortgage warehouse purchase loans decreased to $850.5 million for the quarter ended June 30, 2021 from $1.2 billion at March 31, 2021, and increased from $665.8 million for the quarter ended June 30, 2020, an increase of $184.7 million, or 27.7% year over year. The change from the prior year is reflective of the Company's focused attention to grow the warehouse line of business, while the decrease for the current quarter is due to lower volumes related to mortgage rate increases and shorter hold times during the period.

Asset Quality

  • Total nonperforming assets decreased to $53.1 million, or 0.29% of total assets at June 30, 2021, compared to $61.0 million or 0.34% of total assets at March 31, 2021, and increased from $28.4 million, or 0.17% of total assets at June 30, 2020.

  • The decrease in nonperforming loans and nonperforming assets from the linked quarter is primarily due to payoffs and principal reductions totaling $5.4 million as well as $2.4 million in charge-offs during the period, which includes a $1.2 million commercial loan charge-off and various other smaller charge-offs.

  • The increase in nonperforming loans and nonperforming assets from the prior year is primarily due to net additions of $7.5 million in PCD loans added related to our January 1, 2021 CECL adoption as well as nonaccrual loan additions including a $12.2 million energy loan and a $15.1 million commercial real estate credit, offset by a $3.5 million charge-off on an energy credit and the $1.2 million commercial loan charge-off mentioned above as well as the high volume of payoffs and principal reductions occurring in second quarter 2021.

  • Charge-offs were 0.13% annualized in the second quarter 2021 compared to 0.01% annualized in the linked quarter and 0.05% annualized in the prior year quarter. Charge-offs were elevated in second quarter 2021 due to the $1.2 million commercial loan charge-off discussed above as well as another $1.2 million commercial charge-off of a performing loan. Both charge-offs were fully reserved in prior periods.

Deposits, Borrowings and Liquidity

  • Total deposits were $15.1 billion at June 30, 2021 compared to $14.8 billion at March 31, 2021 and compared to $13.3 billion at June 30, 2020. The increase in deposits from the linked quarter is related to $350.0 million in reciprocal deposits brought back on balance sheet in May and June offset by decreases in specialty treasury accounts. Noninterest bearing deposits increased $168.2 million from March 31, 2021 and $650.1 million from June 30, 2020.

  • Total borrowings (other than junior subordinated debentures) were $681.0 million at June 30, 2021, a decrease of $2.3 million from March 31, 2021 and a decrease of $435.4 million from June 30, 2020. The linked quarter change reflects a $2.5 million payoff in borrowings against the Company's unsecured revolving line of credit with an unrelated commercial bank. The change from prior year reflects a $550.0 million reduction of short-term FHLB advances, as well as the payoff of $13.5 million in total borrowings for both the Company's unsecured line of credit and the Fed's PPP Liquidity Facility, offset by proceeds of $127.5 million, net of issuance costs, related to subordinated debentures issued in third quarter 2020.

Capital

  • The Company continues to be well capitalized under regulatory guidelines. At June 30, 2021, 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 11.14%, 9.03%, 11.55% and 14.23%, respectively, compared to 10.94%, 9.01%, 11.36%, and 14.13%, respectively, at March 31, 2021 and 10.17%, 8.94%, 10.60%, and 12.44%, respectively at June 30, 2020.

  • The Company has elected to adopt the three-year transition option related to the CECL $53.9 million cumulative-effect reduction to retained earnings pursuant to the Federal Reserve Board’s final rule issued in February 2019. Such deferral has been applied in the June 30, 2021 and March 31, 2021 capital ratios presented.

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, 2021 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, 2021 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 areas in Texas and the Colorado Front Range area, including Denver, Colorado Springs and Fort Collins.

Conference Call

A conference call covering Independent Bank Group’s second quarter earnings announcement will be held on Tuesday, July 27, 2021 at 8:30 a.m. (EDT) and can be accessed by the webcast link, https://webcast-eqs.com/indepbankgroup20210727/en or by calling 1-877-407-0989 and by identifying the meeting number 13721042 or by identifying "Independent Bank Group Second Quarter 2021 Earnings Conference Call." The conference materials will also be available by accessing the Investor Relations page of our website, www.ifinancial.com. If you are unable to participate in the live event, a recording of the conference call will be accessible via the Investor Relations page of our website.

Forward-Looking Statements

From time to time the Company’s comments and releases may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties and are made pursuant to the safe harbor provisions of Section 27A of the Securities Act, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and other related federal security laws. Forward-looking statements include information about the Company’s possible or assumed future results of operations, including its future revenues, income, expenses, provision for taxes, effective tax rate, earnings per share and cash flows, its future capital expenditures and dividends, its future financial condition and changes therein, including changes in the Company’s loan portfolio and allowance for credit losses, the Company’s future capital structure or changes therein, the plan and objectives of management for future operations, the Company’s future or proposed acquisitions, the future or expected effect of acquisitions on the Company’s operations, results of operations and financial condition, the Company’s future economic performance and the statements of the assumptions underlying any such statement. Such statements are typically, but not exclusively, identified by the use in the statements of words or phrases such as "aim," "anticipate," "estimate," "expect," "goal," "guidance," "intend," "is anticipated," "is estimated," "is expected," "is intended," "objective," "plan," "projected," "projection," "will affect," "will be," "will continue," "will decrease," "will grow," "will impact," "will increase," "will incur," "will reduce," "will remain," "will result," "would be," variations of such words or phrases (including where the word "could," "may" or "would" is used rather than the word "will" in a phrase) and similar words and phrases indicating that the statement addresses some future result, occurrence, plan or objective. The forward-looking statements that the Company makes are based on its current expectations and assumptions regarding its business, the economy, and other future conditions. Because forward-looking statements relate to future results and occurrences, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. The Company’s actual results may differ materially from those contemplated by the forward looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance. Many possible events or factors could affect the Company’s future financial results and performance and could cause those results or performance to differ materially from those expressed in the forward-looking statements. These possible events or factors include, but are not limited to: 1) the disruption to local, regional, national and global economic activity caused by infectious disease outbreaks, including the recent outbreak of coronavirus, or COVID-19, and the significant impact that such outbreak has had and may have on the Company’s growth, operations, earnings and asset quality; 2) the Company’s ability to sustain its current internal growth rate and total growth rate; 3) 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; 4) 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; 5) the Company’s dependence on its management team and its ability to attract, motivate and retain qualified personnel; 6) the concentration of the Company’s business within its geographic areas of operation in Texas and Colorado; 7) changes in asset quality, including increases in default rates on loans and higher levels of nonperforming loans and loan charge-offs generally, and specifically resulting from the economic dislocation caused by the COVID-19 pandemic; 8) 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; 9) 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; 10) inaccuracy of the assumptions and estimates that the managements of the Company and the financial institutions that the Company acquires make in establishing reserves for credit losses and other estimates generally, and specifically as a result of the effect of the COVID-19 pandemic; 11) lack of liquidity, including as a result of a reduction in the amount of sources of liquidity the Company currently has; 12) 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; 13) the Company’s access to the debt and equity markets and the overall cost of funding its operations; 14) regulatory requirements to maintain minimum capital levels or maintenance of capital at levels sufficient to support the Company’s anticipated growth; 15) 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 that affect the net interest income, other future cash flows, or the market value of the assets of each of Independent Bank and the financial institutions that the Company acquires, including investment securities; 16) 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; 17) effects of competition from a wide variety of local, regional, national and other providers of financial, investment and insurance services; 18) changes in economic and market conditions, including the economic dislocation resulting from the COVID-19 pandemic, that affect the amount and value of the assets of Independent Bank and of financial institutions that the Company acquires; 19) 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; 20) the occurrence of market conditions adversely affecting the financial industry generally, including the economic dislocation resulting from the COVID-19 pandemic; 21) the impact of recent and future legislative 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, as well as regulatory requirements applicable to, and resulting from regulatory supervision of, the Company and Independent Bank as a financial institution with total assets greater than $10 billion; 22) changes in accounting policies, practices, principles and guidelines, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the SEC and the Public Company Accounting Oversight Board, as the case may be; 23) governmental monetary and fiscal policies, including changes resulting from the implementation of the new Current Expected Credit Loss accounting standard; 24) changes in the scope and cost of FDIC insurance and other coverage; 25) the effects of war or other conflicts, acts of terrorism (including cyber attacks) or other catastrophic events, including natural disasters such as storms, droughts, tornadoes, hurricanes and flooding, that may affect general economic conditions; 26) the Company’s actual cost savings resulting from previous or future acquisitions are less than expected, the Company is unable to realize those cost savings as soon as expected, or the Company incurs additional or unexpected costs; 27) the Company’s revenues after previous or future acquisitions are less than expected; 28) the liquidity of, and changes in the amounts and sources of liquidity available to the Company, before and after the acquisition of any financial institutions that the Company acquires; 29) deposit attrition, operating costs, customer loss and business disruption before and after the Company completed acquisitions, including, without limitation, difficulties in maintaining relationships with employees, may be greater than the Company expected; 30) the effects of the combination of the operations of financial institutions that the Company has 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 the Company expects; 31) 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; 32) 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 it determined or determine in its due diligence investigation in connection with the acquisition of such financial institutions and any inadequacy of credit loss reserves relating to, and exposure to unrecoverable losses on, loans acquired; 33) 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 the Company’s markets and to enter new markets; 34) general business and economic conditions in the Company’s markets change or are less favorable than expected generally, and specifically as a result of the COVID-19 pandemic; 35) changes occur in business conditions and inflation generally, and specifically as a result of the COVID-19 pandemic; 36) an increase in the rate of personal or commercial customers’ bankruptcies generally, and specifically as a result of the COVID-19 pandemic; 37) technology-related changes are harder to make or are more expensive than expected; 38) attacks on the security of, and breaches of, the Company's and 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; 39) the potential impact of technology and "FinTech" entities on the banking industry generally; 40) the other factors that are described or referenced in Part I, Item 1A, of the Company’s Annual Report on Form 10-K filed with the SEC on March 1, 2021, under the caption "Risk Factors"; and 41) other economic, competitive, governmental, regulatory, technological and geopolitical factors affecting the Company’s operations, pricing and services. The Company urges you to consider all of these risks, uncertainties and other factors carefully in evaluating all such forward-looking statements made by the Company. As a result of these and other matters, including changes in facts, assumptions not being realized or other factors, the actual results relating to the subject matter of any forward-looking statement may differ materially from the anticipated results expressed or implied in that forward-looking statement. Any forward-looking statement made in this prospectus or made by the Company in any report, filing, document or information incorporated by reference in this prospectus, speaks only as of the date on which it is made. The Company undertakes no obligation to update any such forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. A forward-looking statement may include a statement of the assumptions or bases underlying the forward-looking statement. The Company believes that these assumptions or bases have been chosen in good faith and that they are reasonable. However, the Company cautions you that assumptions as to future occurrences or results almost always vary from actual future occurrences or results, and the differences between assumptions and actual occurrences and results can be material. Therefore, the Company cautions you not to place undue reliance on the forward-looking statements contained in this prospectus or incorporated by reference herein.

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 credit losses and the effect of goodwill, other intangible assets and income from accretion on acquired loans arising from purchase accounting adjustments, that we believe cause certain aspects of our results of operations or financial condition to be not indicative of our primary operating results. All of these items significantly impact our financial statements. Additionally, the items that we exclude in our adjustments are not necessarily consistent with the items that our peers may exclude from their results of operations and key financial measures and therefore may limit the comparability of similarly named financial measures and ratios. We compensate for these limitations by providing the equivalent GAAP measures whenever we present the non-GAAP financial measures and by including a reconciliation of the impact of the components adjusted for in the non-GAAP financial measure so that both measures and the individual components may be considered when analyzing our performance.

A reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statements tables.

Independent Bank Group, Inc. and Subsidiaries

Consolidated Financial Data

Three Months Ended June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020

(Dollars in thousands, except for share data)

(Unaudited)

As of and for the Quarter Ended

June 30, 2021

March 31, 2021

December 31, 2020

September 30, 2020

June 30, 2020

Selected Income Statement Data

Interest income

$

145,805

$

147,771

$

152,062

$

151,798

$

151,241

Interest expense

16,508

18,042

19,236

19,791

22,869

Net interest income

129,297

129,729

132,826

132,007

128,372

Provision for credit losses

(6,500)

(2,500)

3,871

7,620

23,121

Net interest income after provision for credit losses

135,797

132,229

128,955

124,387

105,251

Noninterest income

15,926

18,609

19,912

25,165

25,414

Noninterest expense

78,013

75,113

75,227

73,409

83,069

Income tax expense

15,467

15,745

15,366

16,068

8,903

Net income

58,243

59,980

58,274

60,075

38,693

Adjusted net income (1)

58,243

60,084

58,007

59,580

49,076

Per Share Data (Common Stock)

Earnings:

Basic

$

1.35

$

1.39

$

1.35

$

1.39

$

0.90

Diluted

1.35

1.39

1.35

1.39

0.90

Adjusted earnings:

Basic (1)

1.35

1.39

1.34

1.38

1.14

Diluted (1)

1.35

1.39

1.34

1.38

1.14

Dividends

0.32

0.30

0.30

0.25

0.25

Book value

58.89

57.72

58.31

57.26

56.34

Tangible book value (1)

33.98

32.74

33.23

32.17

31.05

Common shares outstanding

43,180,607

43,193,257

43,137,104

43,244,797

43,041,119

Weighted average basic shares outstanding (2)

43,188,050

43,178,522

43,177,824

43,234,913

43,041,660

Weighted average diluted shares outstanding (2)

43,247,195

43,222,943

43,177,824

43,234,913

43,177,986

Selected Period End Balance Sheet Data

Total assets

$

18,447,721

$

18,115,336

$

17,753,476

$

17,117,007

$

16,986,025

Cash and cash equivalents

2,794,700

2,416,870

1,813,987

1,453,733

1,605,911

Securities available for sale

1,574,435

1,307,957

1,153,693

1,076,619

1,049,592

Loans, held for sale

43,684

57,799

82,647

87,406

72,865

Loans, held for investment (3)(4)

11,576,332

11,665,058

11,622,298

11,651,855

11,690,356

Mortgage warehouse purchase loans

894,324

1,105,699

1,453,797

1,219,013

903,630

Allowance for credit losses on loans(3)

154,791

165,827

87,820

87,491

80,055

Goodwill and other intangible assets

1,075,801

1,078,946

1,082,091

1,085,236

1,088,411

Other real estate owned

475

475

475

1,642

1,688

Noninterest-bearing deposits

4,634,530

4,466,310

4,164,800

4,187,150

3,984,404

Interest-bearing deposits

10,429,261

10,337,482

10,234,127

9,610,410

9,314,631

Borrowings (other than junior subordinated debentures)

681,023

683,350

687,175

680,529

1,116,462

Junior subordinated debentures

54,122

54,072

54,023

53,973

53,924

Total stockholders' equity

2,542,885

2,493,117

2,515,371

2,476,373

2,424,960

Independent Bank Group, Inc. and Subsidiaries

Consolidated Financial Data

Three Months Ended June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020

(Dollars in thousands, except for share data)

(Unaudited)

As of and for the Quarter Ended

June 30, 2021

March 31, 2021

December 31, 2020

September 30, 2020

June 30, 2020

Selected Performance Metrics

Return on average assets

1.28

%

1.37

%

1.34

%

1.43

%

0.94

%

Return on average equity

9.27

9.78

9.29

9.73

6.44

Return on tangible equity (5)

16.19

17.29

16.40

17.43

11.71

Adjusted return on average assets (1)

1.28

1.37

1.34

1.42

1.20

Adjusted return on average equity (1)

9.27

9.80

9.24

9.65

8.16

Adjusted return on tangible equity (1) (5)

16.19

17.32

16.33

17.29

14.86

Net interest margin

3.14

3.29

3.42

3.52

3.51

Adjusted net interest margin (6)

3.14

3.29

3.40

3.48

3.50

Efficiency ratio (7)

51.55

48.52

47.19

44.69

51.95

Adjusted efficiency ratio (1)

51.48

48.39

47.16

44.57

41.73

Credit Quality Ratios (3) (4) (8)

Nonperforming assets to total assets

0.29

%

0.34

%

0.29

...

0.25

%

0.17

%

Nonperforming loans to total loans held for investment

0.45

0.52

0.44

0.36

0.23...

Nonperforming assets to total loans held for investment and other real estate

0.46

0.52

0.45

0.37

0.24

Allowance for credit losses to nonperforming loans

294.88

274.71

170.80

211.12

300.95

Allowance for credit losses to total loans held for investment

1.34

1.42

0.76

0.75

0.68

Net charge-offs to average loans outstanding (annualized)

0.13

0.01

0.11

0.01

0.05

Capital Ratios

Estimated common equity Tier 1 capital to risk-weighted assets

11.14

%

10.94

%

10.33

%

10.24

%

10.17

%

Estimated tier 1 capital to average assets

9.03

9.01

9.12

9.15

8.94

Estimated tier 1 capital to risk-weighted assets

11.55

11.36

10.74

10.66

10.60

Estimated total capital to risk-weighted assets

14.23

14.13

13.32

13.29

12.44

Total stockholders' equity to total assets

13.78

13.76

14.17

14.47

14.28

Tangible common equity to tangible assets (1)

8.45

8.30

8.60

8.68

8.41

____________

(1) Non-GAAP financial measure. See reconciliation.

(2) Total number of shares includes participating shares (those with dividend rights).

(3) On January 1, 2021, the Company adopted the Current Expected Credit Loss (CECL) accounting standard replacing the incurred loss model with an expected credit loss methodology. Due to the adoption of the guidance under the modified retrospective approach, prior periods have not been adjusted and thus may not be comparable. As such, at June 30, 2021 and March 31, 2021, loans held for investment are disclosed net of deferred fees of $14,105 and $15,450, respectively, and nonperforming PCD loans are included in total nonperforming loans.

(4) Loans held for investment excludes mortgage warehouse purchase loans and includes SBA PPP loans of $490,485, $912,176, $804,397, $825,966 and $823,289, respectively.

(5) Non-GAAP financial measure. Excludes average balance of goodwill and net other intangible assets.

(6) Non-GAAP financial measure. Prior to the adoption of CECL, excludes unexpected income recognized on credit impaired acquired loans for the quarters ended December 31, 2020, September 30, 2020, and June 30, 2020 in the amounts of $579, $1,294 and $354, respectively.

(7) Efficiency ratio excludes amortization of other intangible assets. See reconciliation of non-GAAP financial measures.

(8) Credit metrics - Nonperforming assets, which consist of nonperforming loans, OREO and other repossessed assets, totaled $53,081, $60,954, $52,005, $43,197 and $28,403, respectively. Nonperforming loans, which consists of nonaccrual loans, loans delinquent 90 days and still accruing interest, and troubled debt restructurings, and prior to the adoption of CECL, excluded loans acquired with deteriorated credit quality (now referred to as PCD loans), totaled $52,492, $60,365, $51,416, $41,441 and $26,601, respectively.

Independent Bank Group, Inc. and Subsidiaries

Consolidated Statements of Income

Three and Six Months Ended June 30, 2021 and 2020

(Dollars in thousands)

(Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2021

2020

2021

2020

Interest income:

Interest and fees on loans

$

137,620

$

143,405

$

277,772

$

290,510

Interest on taxable securities

5,252

4,828

10,009

9,992

Interest on nontaxable securities

2,061

2,168

4,130

4,233

Interest on interest-bearing deposits and other

872

840

1,665

2,911

Total interest income

145,805

151,241

293,576

307,646

Interest expense:

Interest on deposits

11,487

18,327

24,494

46,398

Interest on FHLB advances

537

1,289

1,070

2,915

Interest on other borrowings

4,043

2,685

8,103

5,480

Interest on junior subordinated debentures

441

568

883

1,240

Total interest expense

16,508

22,869

34,550

56,033

Net interest income

129,297

128,372

259,026

251,613

Provision for credit losses

(6,500

)

23,121

(9,000

)

31,502

Net interest income after provision for credit losses

135,797

105,251

268,026

220,111

Noninterest income:

Service charges on deposit accounts

2,250

1,957

4,511

4,708

Investment management fees

2,086

1,646

4,129

3,632

Mortgage banking revenue

5,237

10,479

12,732

13,004

Gain on sale of loans

26

689

26

647

Gain on sale of other real estate

12

37

Gain on sale of securities available for sale

26

382

(Loss) gain on sale and disposal of premises and equipment

(13

)

340

(20

)

277

Increase in cash surrender value of BOLI

1,287

1,331

2,559

2,672

Other

5,053

8,934

10,598

14,627

Total noninterest income

15,926

25,414

34,535

39,986

Noninterest expense:

Salaries and employee benefits

43,837

34,428

87,496

73,088

Occupancy

10,852

9,378

20,458

19,415

Communications and technology

5,581

5,925

11,117

11,477

FDIC assessment

1,467

1,989

3,172

3,741

Advertising and public relations

376

862

614

1,473

Other real estate owned expenses, net

4

42

12

416

Impairment of other real estate

738

738

Amortization of other intangible assets

3,145

3,175

6,290

6,351

Professional fees

3,756

2,181

7,426

6,395

Acquisition expense, including legal

15,629

16,178

Other

8,995

8,722

16,541

18,226

Total noninterest expense

78,013

83,069

153,126

157,498

Income before taxes

73,710

47,596

149,435

102,599

Income tax expense

15,467

8,903

31,212

19,739

Net income

$

58,243

$

38,693

$

118,223

$

82,860

Independent Bank Group, Inc. and Subsidiaries

Consolidated Balance Sheets

As of June 30, 2021 and December 31, 2020

(Dollars in thousands)

(Unaudited)

June 30,

December 31,

Assets

2021

2020

Cash and due from banks

$

256,993

$

250,485

Interest-bearing deposits in other banks

2,537,707

1,563,502

Cash and cash equivalents

2,794,700

1,813,987

Certificates of deposit held in other banks

3,245

4,482

Securities available for sale, at fair value

1,574,435

1,153,693

Loans held for sale (includes $33,055 and $71,769 carried at fair value, respectively)

43,684

82,647

Loans, net of allowance for credit losses of $154,791 and $87,820, respectively

12,315,865

12,978,238

Premises and equipment, net

252,883

249,467

Other real estate owned

475

475

Federal Home Loan Bank (FHLB) of Dallas stock and other restricted stock

21,560

20,305

Bank-owned life insurance (BOLI)

222,987

220,428

Deferred tax asset

17,563

3,933

Goodwill

994,021

994,021

Other intangible assets, net

81,780

88,070

Other assets

124,523

143,730

Total assets

$

18,447,721

$

17,753,476

Liabilities and Stockholders’ Equity

Deposits:

Noninterest-bearing

$

4,634,530

$

4,164,800

Interest-bearing

10,429,261

10,234,127

Total deposits

15,063,791

14,398,927

FHLB advances

375,000

375,000

Other borrowings

306,023

312,175

Junior subordinated debentures

54,122

54,023

Other liabilities

105,900

97,980

Total liabilities

15,904,836

15,238,105

Commitments and contingencies

Stockholders’ equity:

Preferred stock (0 and 0 shares outstanding, respectively)

Common stock (43,180,607 and 43,137,104 shares outstanding, respectively)

432

431

Additional paid-in capital

1,940,360

1,934,807

Retained earnings

579,585

543,800

Accumulated other comprehensive income

22,508

36,333

Total stockholders’ equity

2,542,885

2,515,371

Total liabilities and stockholders’ equity

$

18,447,721

$

17,753,476

Independent Bank Group, Inc. and Subsidiaries

Consolidated Average Balance Sheet Amounts, Interest Earned and Yield Analysis

Three Months Ended June 30, 2021 and 2020

(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,

2021

2020

Average

Outstanding

Balance

Interest

Yield/

Rate (4)

Average

Outstanding

Balance

Interest

Yield/

Rate (4)

Interest-earning assets:

Loans (1)

$

12,480,653

$

137,620

4.42

%

$

12,297,599

$

143,405

4.69

%

Taxable securities

1,068,446

5,252

1.97

750,381

4,828

2.59

Nontaxable securities

349,347

2,061

2.37

348,204

2,168

2.50

Interest bearing deposits and other

2,603,276

872

0.13

1,296,048

840

0.26

Total interest-earning assets

16,501,722

145,805

3.54

14,692,232

151,241

4.14

Noninterest-earning assets

1,782,053

1,793,324

Total assets

$

18,283,775

$

16,485,556

Interest-bearing liabilities:

Checking accounts

$

5,811,703

$

5,927

0.41

%

$

4,350,985

$

6,044

0.56

%

Savings accounts

702,208

273

0.16

598,237

260

0.17

Money market accounts

2,511,010

3,537

0.56

2,304,386

4,540

0.79

Certificates of deposit

1,316,277

1,750

0.53

1,707,470

7,483

1.76

Total deposits

10,341,198

11,487

0.45

8,961,078

18,327

0.82

FHLB advances

375,000

537

0.57

1,076,648

1,289

0.48

Other borrowings

306,759

4,043

5.29

184,393

2,685

5.86

Junior subordinated debentures

54,104

441

3.27

53,906

568

4.24

Total interest-bearing liabilities

11,077,061

16,508

0.60

10,276,025

22,869

0.90

Noninterest-bearing checking accounts

4,587,786

3,699,045

Noninterest-bearing liabilities

98,925

92,448

Stockholders’ equity

2,520,003

2,418,038

Total liabilities and equity

$

18,283,775

$

16,485,556

Net interest income

$

129,297

$

128,372

Interest rate spread

2.94

%

3.24

%

Net interest margin (2)

3.14

3.51

Net interest income and margin (tax equivalent basis) (3)

$

130,267

3.17

$

129,344

3.54

Average interest-earning assets to interest-bearing liabilities

148.97

142.98

____________

(1) Average loan balances include nonaccrual loans.

(2) Net interest margins for the periods presented represent: (i) the difference between interest income on interest-earning assets and the interest expense on interest-bearing liabilities, divided by (ii) average interest-earning assets for the period.

(3) A tax-equivalent adjustment has been computed using a federal income tax rate of 21%.

(4) Yield and rates for the three month periods are annualized.

Independent Bank Group, Inc. and Subsidiaries

Consolidated Average Balance Sheet Amounts, Interest Earned and Yield Analysis

Six Months Ended June 30, 2021 and 2020

(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,

2021

2020

Average

Outstanding

Balance

Interest

Yield/Rate

Average

Outstanding

Balance

Interest

Yield/Rate

Interest-earning assets:

Loans (1)

$

12,679,592

$

277,772

4.42

%

$

11,917,473

$

290,510

4.90

%

Taxable securities

1,007,664

10,009

2.00

757,608

9,992

2.65

Nontaxable securities

350,887

4,130

2.37

338,923

4,233

2.51

Interest bearing deposits and other

2,214,691

1,665

0.15

916,812

2,911

0.64

Total interest-earning assets

16,252,834

293,576

3.64

13,930,816

307,646

4.44

Noninterest-earning assets

1,784,355

1,794,757

Total assets

$

18,037,189

$

15,725,573

Interest-bearing liabilities:

Checking accounts

$

5,652,511

$

12,001

0.43

%

$

4,341,287

$

17,017

0.79

%

Savings accounts

686,442

533

0.16

574,327

525

0.18

Money market accounts

2,606,418

7,563

0.59

2,177,205

12,353

1.14

Certificates of deposit

1,353,451

4,397

0.66

1,762,340

16,503

1.88

Total deposits

10,298,822

24,494

0.48

8,855,159

46,398

1.05

FHLB advances

375,000

1,070

0.58

743,407

2,915

0.79

Other borrowings

308,387

8,103

5.30

189,618

5,480

5.81

Junior subordinated debentures

54,080

883

3.29

53,881

1,240

4.63

Total interest-bearing liabilities

11,036,289

34,550

0.63

9,842,065

56,033

1.14

Noninterest-bearing checking accounts

4,407,624

3,398,116

Noninterest-bearing liabilities

89,678

91,768

Stockholders’ equity

2,503,598

2,393,624

Total liabilities and equity

$

18,037,189

$

15,725,573

Net interest income

$

259,026

$

251,613

Interest rate spread

3.01

%

3.30

%

Net interest margin (2)

3.21

3.63

Net interest income and margin (tax equivalent basis) (3)

$

260,956

3.24

$

253,498

3.66

Average interest-earning assets to interest-bearing liabilities

147.27

141.54

____________

(1) Average loan balances include nonaccrual loans.

(2) Net interest margins for the periods presented represent: (i) the difference between interest income on interest-earning assets and the interest expense on interest-bearing liabilities, divided by (ii) average interest-earning assets for the period.

(3) A tax-equivalent adjustment has been computed using a federal income tax rate of 21%.

Independent Bank Group, Inc. and Subsidiaries

Loan Portfolio Composition

As of June 30, 2021 and December 31, 2020

(Dollars in thousands)

(Unaudited)

Total Loans By Class

June 30, 2021

December 31, 2020

Amount

% of Total

Amount

% of Total

Commercial (1)(2)

$

3,137,227

25.1

%

$

3,902,496

29.7

%

Real estate:

Commercial real estate

6,349,496

50.7

6,096,676

46.3

Commercial construction, land and land development

1,175,486

9.4

1,245,801

9.5

Residential real estate (3)

1,349,060

10.8

1,435,112

10.9

Single-family interim construction

342,071

2.7

326,575

2.5

Agricultural

78,688

0.6

85,014

0.6

Consumer

82,312

0.7

67,068

0.5

Total loans (4)

12,514,340

100.0

%

13,158,742

100.0

%

Deferred loan fees (4)

(10,037

)

Allowance for credit losses

(154,791

)

(87,820

)

Total loans, net

$

12,359,549

$

13,060,885

____________

(1) Includes mortgage warehouse purchase loans of $894,324 and $1,453,797 at June 30, 2021 and December 31, 2020, respectively.

(2) Includes SBA PPP loans of $490,485 with net deferred loan fees of $10,548 at June 30, 2021 and $804,397 at December 31, 2020.

(3) Includes loans held for sale of $43,684 and $82,647 at June 30, 2021 and December 31, 2020, respectively.

(4) Loan class amounts are shown at amortized cost, net of deferred loan fees of $14,105 in accordance with CECL at June 30, 2021 and shown at recorded investment at December 31, 2020.

Independent Bank Group, Inc. and Subsidiaries

Reconciliation of Non-GAAP Financial Measures

Three Months Ended June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020

(Dollars in thousands, except for share data)

(Unaudited)

For the Three Months Ended

June 30, 2021

March 31, 2021

December 31, 2020

September 30, 2020

June 30, 2020

ADJUSTED NET INCOME

Net Interest Income - Reported

(a)

$

129,297

$

129,729

$

132,826

$

132,007

$

128,372

Unexpected income recognized on credit impaired acquired loans (1)

(579

)

(1,294

)

(354

)

Adjusted Net Interest Income

(b)

129,297

129,729

132,247

130,713

128,018

Provision Expense - Reported

(c)

(6,500

)

(2,500

)

3,871

7,620

23,121

Noninterest Income - Reported

(d)

15,926

18,609

19,912

25,165

25,414

(Gain) loss on sale of loans

(26

)

291

(689

)

Loss (gain) on sale of other real estate

73

(12

)

Gain on sale of securities available for sale

(26

)

Loss (gain) on sale and disposal of premises and equipment

13

7

(59

)

(34

)

(340

)

Recoveries on loans charged off prior to acquisition

(204

)

(129

)

(450

)

(138

)

(3,640

)

Adjusted Noninterest Income

(e)

15,709

18,487

19,767

24,993

20,707

Noninterest Expense - Reported

(f)

78,013

75,113

75,227

73,409

83,069

OREO impairment

(46

)

(738

)

Impairment of assets

(9

)

(336

)

COVID-19 expense (2)

(61

)

(141

)

(1,451

)

Acquisition expense (3)

(217

)

(244

)

(326

)

(316

)

(15,644

)

Adjusted Noninterest Expense

(g)

77,796

74,860

74,840

72,570

65,236

Income Tax Expense - Reported

(h)

15,467

15,745

15,366

16,068

8,903

Net Income - Reported

(a) - (c) + (d) - (f) - (h) = (i)

58,243

59,980

58,274

60,075

38,693

Adjusted Net Income (4)

(b) - (c) + (e) - (g) = (j)

$

58,243

$

60,084

$

58,007

$

59,580

$

49,076

ADJUSTED PROFITABILITY

Total Average Assets

(k)

$

18,283,775

$

17,787,862

$

17,252,111

$

16,713,895

$

16,485,556

Total Average Stockholders' Equity

(l)

$

2,520,003

$

2,487,010

$

2,496,318

$

2,457,423

$

2,418,038

Total Average Tangible Stockholders' Equity (5)

(m)

$

1,443,131

$

1,407,016

$

1,413,167

$

1,371,094

$

1,328,568

Reported Return on Average Assets

(i) / (k)

1.28

%

1.37

%

1.34

%

1.43

%

0.94

%

Reported Return on Average Equity

(i) / (l)

9.27

%

9.78

%

9.29

%

9.73

%

6.44

%

Reported Return on Average Tangible Equity

(i) / (m)

16.19

%

17.29

%

16.40

%

17.43

%

11.71

%

Adjusted Return on Average Assets (6)

(j) / (k)

1.28

%

1.37

%

1.34

%

1.42

%

1.20

%

Adjusted Return on Average Equity (6)

(j) / (l)

9.27

%

9.80

%

9.24

%

9.65

%

8.16

%

Adjusted Return on Tangible Equity (6)

(j) / (m)

16.19

%

17.32

%

16.33

%

17.29

%

14.86

%

EFFICIENCY RATIO

Amortization of other intangible assets

(n)

$

3,145

$

3,145

$

3,145

$

3,175

$

3,175

Reported Efficiency Ratio

(f - n) / (a + d)

51.55

%

48.52

%

47.19

%

44.69

%

51.95

%

Adjusted Efficiency Ratio

(g - n) / (b + e)

51.48

%

48.39

%

47.16

%

44.57

%

41.73

%

____________

(1) Prior to the adoption of CECL, unexpected income on purchase credit impaired loans was deducted from adjusted income.

(2) COVID-19 expense includes expenses such as employee's premium pay, personal protection and cleaning supplies, remote work equipment, advertising and communications, and community support/donations.

(3) Acquisition expenses include $217, $244, $326, $269 and $15 of compensation related expenses in addition to $0, $0, $0, $47 and $15,629 of merger-related expenses for the quarters ended June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, respectively.

(4) Assumes an adjusted effective tax rate of 21.0%, 20.8%, 20.9%, 21.1%, and 18.7% for the quarters ended June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, respectively.

(5) Excludes average balance of goodwill and net other intangible assets.

(6) Calculated using adjusted net income.

Independent Bank Group, Inc. and Subsidiaries

Reconciliation of Non-GAAP Financial Measures

As of June 30, 2021 and December 31, 2020

(Dollars in thousands, except per share information)

(Unaudited)

Tangible Book Value & Tangible Common Equity To Tangible Asset Ratio

June 30,

December 31,

2021

2020

Tangible Common Equity

Total common stockholders' equity

$

2,542,885

$

2,515,371

Adjustments:

Goodwill

(994,021

)

(994,021

)

Other intangible assets, net

(81,780

)

(88,070

)

Tangible common equity

$

1,467,084

$

1,433,280

Tangible Assets

Total assets

$

18,447,721

$

17,753,476

Adjustments:

Goodwill

(994,021

)

(994,021

)

Other intangible assets, net

(81,780

)

(88,070

)

Tangible assets

$

17,371,920

$

16,671,385

Common shares outstanding

43,180,607

43,137,104

Tangible common equity to tangible assets

8.45

%

8.60

%

Book value per common share

$

58.89

$

58.31

Tangible book value per common share

33.98

33.23

View source version on businesswire.com: https://www.businesswire.com/news/home/20210726005706/en/

Contacts

Analysts/Investors:
Paul Langdale
Senior Vice President, Director of Corporate Development
(972) 562-9004
plangdale@ibtx.com

Michelle Hickox
Executive Vice President, Chief Financial Officer
(972) 562-9004
mhickox@ibtx.com

Media:
Schwinn Feng
Chief Marketing Officer
(469) 301-2706
schwinn.feng@ibtx.com

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