Quick10K

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Independent Bank Group

Financials

Price	52.22	EPS	3
Shares	43	P/E	16
MCap	2,248	P/FCF	16
Net Debt	-570	EBIT	294
TEV	1,678	TEV/EBIT	6
TTM 2019-09-30, in MM, except price, ratios

Filings

10-Q	2020-03-31	Filed 2020-05-01
10-K	2019-12-31	Filed 2020-03-02
10-Q	2019-09-30	Filed 2019-10-24
10-Q	2019-06-30	Filed 2019-07-25
10-Q	2019-03-31	Filed 2019-04-25
10-K	2018-12-31	Filed 2019-02-28
10-Q	2018-09-30	Filed 2018-10-25
10-Q	2018-06-30	Filed 2018-07-26
10-Q	2018-03-31	Filed 2018-04-26
10-K	2017-12-31	Filed 2018-02-27
10-Q	2017-09-30	Filed 2017-10-26
10-Q	2017-06-30	Filed 2017-07-27
10-Q	2017-03-31	Filed 2017-04-27
10-K	2016-12-31	Filed 2017-03-08
10-Q	2016-09-30	Filed 2016-10-27
10-Q	2016-06-30	Filed 2016-07-27
10-Q	2016-03-31	Filed 2016-04-27
10-K	2015-12-31	Filed 2016-02-25
10-Q	2015-09-30	Filed 2015-10-30
10-Q	2015-06-30	Filed 2015-07-31
10-Q	2015-03-31	Filed 2015-05-01
10-K	2014-12-31	Filed 2015-02-27
10-Q	2014-09-30	Filed 2014-11-04
10-Q	2014-06-30	Filed 2014-08-11
10-Q	2014-03-31	Filed 2014-05-05
10-K	2013-12-31	Filed 2014-03-27
10-Q	2013-09-30	Filed 2013-11-05
10-Q	2013-06-30	Filed 2013-08-08
10-Q	2013-03-31	Filed 2013-05-15

Reports

8-K	2020-04-29	Other Events, Exhibits
8-K	2020-04-27	Earnings, Regulation FD, Exhibits
8-K	2020-02-03	Other Events, Exhibits
8-K	2020-01-29	Other Events, Exhibits
8-K	2020-01-27	Earnings, Regulation FD, Exhibits
8-K	2020-01-21	Other Events, Exhibits
8-K	2019-12-09	Enter Agreement, Officers, Exhibits
8-K	2019-12-09	Other Events, Exhibits
8-K	2019-11-11	Officers, Exhibits
8-K	2019-11-05	Regulation FD, Exhibits
8-K	2019-10-23	Other Events, Exhibits
8-K	2019-10-21	Earnings, Regulation FD, Exhibits
8-K	2019-08-07	Regulation FD, Exhibits
8-K	2019-07-25	Officers, Exhibits
8-K	2019-07-24	Other Events, Exhibits
8-K	2019-07-22	Earnings, Regulation FD, Exhibits
8-K	2019-05-23	Shareholder Rights, Shareholder Vote, Exhibits
8-K	2019-05-15	Regulation FD, Exhibits
8-K	2019-05-13	Officers
8-K	2019-04-24	Other Events, Exhibits
8-K	2019-04-23	Other Events, Exhibits
8-K	2019-04-22	Earnings, Regulation FD, Exhibits
8-K	2019-01-30	Regulation FD, Exhibits
8-K	2019-01-30	Other Events, Exhibits
8-K	2019-01-28	Earnings, Regulation FD, Exhibits
8-K	2019-01-17	Enter Agreement, Exhibits
8-K	2019-01-01	M&A, Officers, Other Events, Exhibits
8-K	2018-12-27	Other Events, Exhibits
8-K	2018-12-17	Other Events, Exhibits
8-K	2018-11-07	Regulation FD, Exhibits
8-K	2018-10-24	Other Events, Exhibits
8-K	2018-10-23	Earnings, Regulation FD, Exhibits
8-K	2018-09-24	Shareholder Vote
8-K	2018-07-31	Regulation FD, Exhibits
8-K	2018-07-25	Other Events, Exhibits
8-K	2018-07-23	Earnings, Regulation FD, Exhibits
8-K	2018-06-07	Regulation FD, Exhibits
8-K	2018-06-01	M&A, Exhibits
8-K	2018-05-24	Shareholder Vote
8-K	2018-05-22	Enter Agreement, Regulation FD, Exhibits
8-K	2018-05-21	Regulation FD, Exhibits
8-K	2018-04-25	Other Events, Exhibits
8-K	2018-04-23	Earnings, Regulation FD, Exhibits
8-K	2018-03-16	Officers, Regulation FD, Exhibits
8-K	2018-02-01	Regulation FD, Exhibits
8-K	2018-01-31	Other Events, Exhibits
8-K	2018-01-29	Earnings, Regulation FD, Exhibits
8-K	2018-01-17	Enter Agreement, Regulation FD, Exhibits
8-K	2018-01-08	Regulation FD, Exhibits

Independent Bank Group Earnings 2020-03-31

Balance Sheet	Income Statement	Cash Flow

Document

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, 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 incorporation or organization)		(I.R.S. Employer Identification No.)

7777 Henneman Way
McKinney,
Texas		75070-1711
(Address of principal executive offices)		(Zip Code)

(972) 562-9004

(Registrant’s telephone number, including area code)

Not applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:



Title of Each Class	Trading Symbol(s)	Name of Exchange on Which Registered
Common Stock, par value $0.01 per share	IBTX	NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter periods that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.



Large Accelerated Filer	☒		Accelerated Filer	☐
Non-Accelerated Filer	☐	(Do not check if a smaller reporting company)
			Smaller Reporting Company	☐
			Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by a check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Applicable Only to Corporate Issuers

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practical date.

Common Stock, Par Value $0.01 Per Share – 43,041,776 shares as of April 30, 2020.

INDEPENDENT BANK GROUP, INC. AND SUBSIDIARIES

Form 10-Q

March 31, 2020



PART I.	Financial Information

Item 1.	Financial Statements
	Consolidated Balance Sheets-Unaudited	1
	Consolidated Statements of Income-Unaudited	2
	Consolidated Statements of Comprehensive Income-Unaudited	3
	Consolidated Statements of Changes in Stockholders’ Equity-Unaudited	4
	Consolidated Statements of Cash Flows-Unaudited	5
	Notes to Consolidated Financial Statements-Unaudited	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	38

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	57

Item 4.	Controls and Procedures	58

PART II.	Other Information

Item 1.	Legal Proceedings	58

Item 1A.	Risk Factors	59

Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	60

Item 3.	Defaults Upon Senior Securities	60

Item 4.	Mine Safety Disclosures	60

Item 5.	Other Information	61

Item 6.	Exhibits	62

Signatures

***

Table of Contents

PART I

ITEM 1. CONSOLIDATED FINACIAL STATEMENTS

Independent Bank Group, Inc. and Subsidiaries

Consolidated Balance Sheets

March 31, 2020 (unaudited) and December 31, 2019

(Dollars in thousands, except share information)



	March 31,		December 31,
Assets	2020		2019
Cash and due from banks	$	203,572	$	186,299
Interest-bearing deposits in other banks	745,335		378,871
Cash and cash equivalents	948,907		565,170
Certificates of deposit held in other banks	5,719		5,719
Securities available for sale, at fair value	1,089,136		1,085,936
Loans held for sale (includes $32,736 and $29,204 carried at fair value, respectively)	39,427		35,645
Loans, net	11,758,272		11,562,814
Premises and equipment, net	245,539		242,874
Other real estate owned	2,994		4,819
Federal Home Loan Bank (FHLB) of Dallas stock and other restricted stock	55,325		30,052
Bank-owned life insurance (BOLI)	216,422		215,081
Deferred tax asset	1,616		6,943
Goodwill	994,021		994,021
Other intangible assets, net	97,565		100,741
Other assets	118,925		108,392
Total assets	$	15,573,868	$	14,958,207

Liabilities and Stockholders’ Equity
Deposits:
Noninterest-bearing	$	3,156,270	$	3,240,185
Interest-bearing	8,726,496		8,701,151
Total deposits	11,882,766		11,941,336
FHLB advances	975,000		325,000
Other borrowings	177,860		202,251
Junior subordinated debentures	53,874		53,824
Other liabilities	98,083		96,023
Total liabilities	13,187,583		12,618,434
Commitments and contingencies
Stockholders’ equity:
Preferred stock (0 and 0 shares outstanding, respectively)	—		—
Common stock (43,041,776 and 42,950,228 shares outstanding, respectively)	430		430
Additional paid-in capital	1,928,241		1,926,359
Retained earnings	426,942		393,674
Accumulated other comprehensive income	30,672		19,310
Total stockholders’ equity	2,386,285		2,339,773
Total liabilities and stockholders’ equity	$	15,573,868	$	14,958,207

See Notes to Consolidated Financial Statements

Table of Contents

Independent Bank Group, Inc. and Subsidiaries

Consolidated Statements of Income

Three Months Ended March 31, 2020 and 2019 (unaudited)

(Dollars in thousands, except per share information)



	Three Months Ended March 31,
	2020			2019
Interest income:
Interest and fees on loans	$	147,105		$	145,531
Interest on taxable securities	5,164			5,450
Interest on nontaxable securities	2,065			2,225
Interest on interest-bearing deposits and other	2,071			2,370
Total interest income	156,405			155,576
Interest expense:
Interest on deposits	28,071			27,842
Interest on FHLB advances	1,626			2,610
Interest on other borrowings and repurchase agreements	2,795			2,715
Interest on junior subordinated debentures	672			757
Total interest expense	33,164			33,924
Net interest income	123,241			121,652
Provision for loan losses	8,381			3,224
Net interest income after provision for loan losses	114,860			118,428
Noninterest income:
Service charges on deposit accounts	5,542			5,910
Investment management and trust	1,986			2,219
Mortgage banking revenue	2,525			3,093
Loss on sale of loans	(42		)	—
Gain on sale of other real estate	25			—
Gain on sale of securities available for sale	356			245
(Loss) gain on sale and disposal of premises and equipment	(63		)	9
Increase in cash surrender value of BOLI	1,341			1,359
Other	2,841			3,589
Total noninterest income	14,511			16,424
Noninterest expense:
Salaries and employee benefits	38,660			42,380
Occupancy	10,037			8,991
Communications and technology	5,552			5,064
FDIC assessment	1,752			1,248
Advertising and public relations	611			663
Other real estate owned expenses, net	374			71
Impairment of other real estate	—			436
Amortization of other intangible assets	3,176			3,235
Professional fees	4,214			1,170
Acquisition expense, including legal	549			14,987
Other	9,443			8,350
Total noninterest expense	74,368			86,595
Income before taxes	55,003			48,257
Income tax expense	10,836			11,126
Net income	$	44,167		$	37,131
Basic earnings per share	$	1.03		$	0.85
Diluted earnings per share	$	1.03		$	0.85

See Notes to Consolidated Financial Statements

Table of Contents

Independent Bank Group, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Income

Three Months Ended March 31, 2020 and 2019 (unaudited)

(Dollars in thousands)



	Three Months Ended March 31,
	2020			2019
Net income	$	44,167		$	37,131
Other comprehensive income before tax:
Change in net unrealized gains on available for sale securities during the year	14,976			15,151
Reclassification for amount realized through sales of securities available for sale included in net income	(356		)	(245		)
Other comprehensive income before tax	14,620			14,906
Income tax expense	3,258			3,130
Other comprehensive income, net of tax	11,362			11,776
Comprehensive income	$	55,529		$	48,907

See Notes to Consolidated Financial Statements

Table of Contents

Independent Bank Group, Inc. and Subsidiaries

Consolidated Statements of Changes in Stockholders’ Equity

Three Months Ended March 31, 2020 and 2019 (unaudited)

(Dollars in thousands, except for par value, share and per share information)



	Preferred Stock $.01 Par Value 10 million shares authorized		Common Stock $.01 Par Value 100 million shares authorized					Additional Paid in Capital			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Total
	Preferred Stock $.01 Par Value 10 million shares authorized		Shares		Amount			Additional Paid in Capital			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Total
Balance, December 31, 2019	$	—	42,950,228		$	430		$	1,926,359		$	393,674		$	19,310		$	2,339,773
Net income	—		—		—			—			44,167			—			44,167
Other comprehensive income, net of tax	—		—		—			—			—			11,362			11,362
Common stock repurchased	—		(2,629	)	—			—			(145		)	—			(145		)
Restricted stock granted	—		94,177		—			—			—			—			—
Stock based compensation expense	—		—		—			1,882			—			—			1,882
Cash dividends ($0.25 per share)	—		—		—			—			(10,754		)	—			(10,754		)
Balance, March 31, 2020	$	—	43,041,776		$	430		$	1,928,241		$	426,942		$	30,672		$	2,386,285

Balance, December 31, 2018	$	—	30,600,582		$	306		$	1,317,616		$	296,816		$	(8,305	)	$	1,606,433
Cumulative effect of change in accounting principle	—		—		—			—			(926		)	—			(926		)
Net income	—		—		—			—			37,131			—			37,131
Other comprehensive income, net of tax	—		—		—			—			—			11,776			11,776
Stock issued for acquisition of bank, net of offering costs of $804	—		13,179,748		132			600,936			—			—			601,068
Common stock repurchased	—		(225,903	)	(2		)	—			(12,505		)	—			(12,507		)
Restricted stock forfeited	—		(385	)	—			—			—			—			—
Restricted stock granted	—		111,751		1			(1		)	—			—			—
Stock based compensation expense	—		—		—			2,172			—			—			2,172
Cash dividends ($0.25 per share)	—		—		—			—			(10,945		)	—			(10,945		)
Balance, March 31, 2019	$	—	43,665,793		$	437		$	1,920,723		$	309,571		$	3,471		$	2,234,202

See Notes to Consolidated Financial Statements

Table of Contents

Independent Bank Group, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

Three Months Ended March 31, 2020 and 2019 (unaudited)

(Dollars in thousands)



	Three Months Ended March 31,
	2020			2019
Cash flows from operating activities:
Net income	$	44,167		$	37,131
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	3,154			2,694
Accretion of income recognized on acquired loans	(9,142		)	(9,086		)
Amortization of other intangibles assets	3,176			3,235
Amortization of premium on securities, net	619			800
Amortization of discount and origination costs on borrowings	159			159
Stock based compensation expense	1,882			2,172
Excess tax expense (benefit) on restricted stock vested	80			(20		)
FHLB stock dividends	(168		)	(191		)
Gain on sale of securities available for sale	(356		)	(245		)
Loss (gain) on sale and disposal of premises and equipment	63			(9		)
Loss on sale of loans	42			—
Gain on sale of other real estate owned	(25		)	—
Impairment of other real estate	—			436
Deferred tax expense	2,471			6,618
Provision for loan losses	8,381			3,224
Increase in cash surrender value of BOLI	(1,341		)	(1,359		)
Net gain on mortgage loans held for sale	(3,916		)	(2,799		)
Originations of loans held for sale	(107,580		)	(74,640		)
Proceeds from sale of loans held for sale	107,714			87,568
Net change in other assets	(10,935		)	(1,680		)
Net change in other liabilities	1,980			(16,402		)
Net cash provided by operating activities	40,425			37,606
Cash flows from investing activities:
Proceeds from maturities, calls and pay downs of securities available for sale	1,528,836			1,128,949
Proceeds from sale of securities available for sale	13,100			185,508
Purchases of securities available for sale	(1,530,779		)	(1,129,986		)
Purchases of FHLB stock and other restricted stock	(25,211		)	(2,606		)
Proceeds from redemptions of FHLB stock and other restricted stock	106			26,000
Proceeds from sale of loans	1,455			—
Net loans originated held for investment	(89,252		)	(180,233		)
Originations of mortgage warehouse purchase loans	(4,523,819		)	(1,579,008		)
Proceeds from pay-offs of mortgage warehouse purchase loans	4,414,527			1,498,040
Additions to premises and equipment	(5,948		)	(11,601		)
Proceeds from sale of premises and equipment	66			9
Proceeds from sale of other real estate owned	4,200			—
Cash acquired in connection with acquisition	—			39,913
Cash paid in connection with acquisition	—			(9		)
Net cash used in investing activities	(212,719		)	(25,024		)

Table of Contents

Independent Bank Group, Inc. and Subsidiaries

Consolidated Statements of Cash Flows (Continued)

Three Months Ended March 31, 2020 and 2019 (unaudited)

(Dollars in thousands)



	Three Months Ended March 31,
	2020		2019
Cash flows from financing activities:
Net (decrease) increase in demand deposits, money market and savings accounts	(9,596	)	274,844
Net (decrease) increase in time deposits	(48,974	)	109,503
Proceeds from FHLB advances	1,100,000		700,000
Repayments of FHLB advances	(450,000	)	(792,653	)
Proceeds from other borrowings	—		21,000
Repayments of other borrowings	(24,500	)	—
Repurchase of common stock	(145	)

EX-31.1	exhibit311q12020.htm
EX-31.2	exhibit312q12020.htm
EX-32.1	exhibit321q12020.htm
EX-32.2	exhibit322q12020.htm

IBTX 10Q Quarterly Report

Independent Bank Group Earnings 2020-03-31