NASDAQ: IBTX

Investor Presentation

2nd Quarter, 2020

Safe Harbor Statement

This communication contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the financial condition, results of operations, business plans and the future performance of Independent Bank Group, Inc. ("IBTX"). Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "plans," "projects," "could," "may," "should," "will" or other similar words and expressions are intended to identify these forward-looking statements. These forward-looking statements are based on IBTX's current expectations and assumptions regarding IBTX's 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. Many possible events or factors could affect IBTX's future financial results and performance and could cause actual results or performance to differ materially from anticipated results or performance. Such risks and uncertainties include, among others, risks relating to the coronavirus (COVID-19) pandemic and its effect on U.S. and world financial markets, potential regulatory actions, changes in consumer behaviors and impacts on and modifications to the operations and business of IBTX relating thereto, and the business, economic and political conditions in the markets in which IBTX operates. Except to the extent required by applicable law or regulation, IBTX disclaims any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments. Further information regarding IBTX and factors which could affect the forward-looking statements contained herein can be found in IBTX's Annual Report on Form 10-K, as amended, for the fiscal year ended December 31, 2019, its Quarterly Report on Form 10-Q for the period ended March 31, 2020 and its other filings with the Securities and Exchange Commission.

NASDAQ: IBTX

2

Overview

  • Community bank holding company with $15.6 billion in assets and 93 branches across Texas and Colorado.
  • Innately conservative credit culture with a demonstrated history of maintaining resilient asset quality through previous downturns.
  • Highly granular loan portfolio with a small average credit size and low hold limits.
  • Loan growth driven by block-and-tackle community banking: loans made to relationship borrowers across our footprint in Texas and Colorado.
  • Large insider ownership (15% of shares outstanding) aligns shareholder interests with day-to-day management and decision-making.
  • Asset/liability neutral interest rate risk position helps mitigate the impact of a volatile interest rate environment.
  • Disciplined growth both organically and through strategic acquisitions.

NASDAQ: IBTX

3

Company Snapshot

93

BRANCHES

1,445

EMPLOYEES

FOUNDED IN

1988

Denver, CO

HEADQUARTERS

McKinney, TX

Independent Bank Group, Inc.

NASDAQ: IBTX

Financial Highlights

as of and for the Quarter Ended March 31, 2020

Balance Sheet Highlights ($ millions)

Total Assets

$15,574

Loans Held for Investment,

$11,021

Excluding Mortgage Warehouse

Mortgage Warehouse Loans

$797

Total Deposits

$11,883

Total Stockholders' Equity

$2,386

Profitability Metrics1

Adjusted EPS

$1.01

Adjusted ROAA

1.17%

Adjusted ROTCE

13.66%

Adjusted Efficiency Ratio

51.17%

Asset Quality Metrics2

NPAs / Assets

0.20%

NPLs / Loans Held for Investment

0.26%

NCOs (Annualized)

0.05%

Capital Ratios

Tier 1 Capital / RWA

10.38%

Total Capital / RWA

12.05%

TCE / Tangible Assets1

8.94%

Tier 1 Capital / Avg. Assets

9.67%

1Adjusted (non-GAAP) metrics. See Appendix for reconciliation to the closest applicable GAAP metrics.

2Nonperforming assets, which consist of nonperforming loans, OREO and other repossessed assets, totaled $31,602. Nonperforming loans, which consist of nonaccrual loans, loans delinquent 90 days and

still accruing interest, and troubled debt restructurings, and excludes loans acquired with deteriorated4 credit quality, totaled $28,493.

Experienced Leadership Team

David R. Brooks Chairman, CEO & President

Founder - led the investor group that acquired Independent Bank in 1988.

Michelle S. Hickox Chief Financial Officer

30 years in financial services; 8 years at the company.

James C. White Chief Operating Officer

32 years in financial services; 4 years at the company.

James P. Tippit Corporate Responsibility

14 years in financial services; 9 years at the company.

Daniel W. Brooks Vice Chairman, Chief Risk Officer

37 years in financial services; 31 years at the company.

Mark S. Haynie General Counsel

37 years of experience representing community banks in corporate, regulatory and securities matters.

Michael B. Hobbs Chief Lending Officer

25 years in financial services; joined the company in 2019 with the acquisition of Guaranty Bank & Trust, where he served as President.

Strong, Diverse Markets

Dallas/Ft. Worth - North Texas 39 Branches

Our company was founded in North Texas in 1988, and we have since built a large presence in the Dallas/Fort Worth MSA - one of the fastest-growing MSAs in the country, and one of the strongest markets in Texas. Dallas/Fort Worth boasts a diverse economy that has benefitted from a continued boom of corporate relocation activity to business-friendly Texas.

Denver - Colorado Front Range 33 Branches

The Colorado Front Range is one of the strongest and fastest-growing areas of the country. In the 2019 U.S. News & World Report ranking of the best places to live in the United States, Denver came in at No. 2, and Colorado Springs came in at No. 3. The confluence of a diverse economy and strong quality of life indicators has drawn a deep talent pool that helps position the Colorado Front Range for continued growth.

Austin - Central Texas 8 Branches

This market includes the tech hub of Austin, Texas, which U.S. News & World Report rated the No. 1 best place to live in the United States in its 2019 ranking. The market boasts a growing wave of corporate expansions by tech firms into the Austin market, as well as a thriving public sector presence.

Greater Houston 13 Branches

The Greater Houston MSA serves for a regional center for international trade, energy and manufacturing. The city is regularly ranked as one of the most diverse cities in the United States, and is the home to numerous universities as well as a thriving medical industry.

NASDAQ: IBTX

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Demonstrated Record of Healthy Growth

Growth in Total Assets ($ in millions)

CAGR Since 2013 (Organic): 32.9%

CAGR Since 2013 (Total): 38.0%

  • Established history of growing assets both organically and through strategic acquisitions.
  • Demonstrated expertise in integrating M&A transactions, adding $9.7 billion in acquired assets since our IPO.
  • Track record of building scalable platforms for future growth.

Entered

$5,853

Houston

$5,055

Market

$620

$4,133

$1,671

$2,164

$168

Entered

Colorado

Market$9,850

$8,684$852

$2,444

$14,958

$3,943

2013

2014

2015

2016

2017

2018

2019

Assets Acquired in Fiscal Year

IPO Date: April 3, 2013

NASDAQ: IBTX

Note: Acquired assets includes impact of purchase accounting.

6

Historically Strong Credit Culture

NPLs / Loans

4.41%

4.15% 4.11%

NCOs / Average Loans1

3.36%

3.43%

3.03%

2.91%

2.67%

2.25%

2.38%

1.71%

1.89%

1.83%

1.57%

1.62%

1.31%

1.50%

1.49%

1.50%

1.12%

1.04%

0.98%

1.14%

0.81%

0.91%

0.53%

0.68%

0.62%

0.64%

0.32%

0.37%

0.39%

0.26%

0.24%

0.24%

0.16%

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2.67% 2.67%

1.50%

1.22%

0.31% 0.21%

1.64%

1.13%

0.74%

0.70%

0.39%

0.49%

0.43%

0.46%

0.48%

0.46%

0.48%

0.49%

0.28%

0.19%

0.16%

0.18%

0.18%

0.17%

0.16%

0.10%

0.11%

0.06%

0.09%

0.02%

0.12%

0.01%

0.06%

0.07%

0.05%

0.03%

Q1

IBTX

Texas Average

U.S. Average

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

YTD

IBTX

Texas Average

U.S. Average

12020 YTD numbers are annualized.

NASDAQ: IBTX Note: Financial data as of and for the quarter ended December 31, 2019 for peer data and for the three months ended 7 March 31, 2020 for IBTX. Interim charge-off data annualized. Source: S&P Global Market Intelligence.

Loan Loss Coverage

IBTX Allowance for Credit Losses

as of 3/31/2020

Illustrative Retrospective Impact of CECL Adoption

~$58.0 Million

$22.0 Million

$58.4 Million

$58.4 Million

0.53% of LHFI

3/31/2020 ALLL

(Excluding Mortgage Warehouse)

  • IBTX deferred CECL adoption as provided under the CARES Act until the earlier of December 31, 2020, or the termination of the President's national emergency declaration, with a retrospective effective date of January 1, 2020.
  • Current anticipated "Day One", January 1, 2020, impact from the adoption of CECL is estimated to boost reserves to approximately 1.26% of loans held for investment (excluding mortgage warehouse):

~$138.4 Million

~1.26% of LHFI

(Excluding Mortgage Warehouse)

As of 3/31/2020

Estimated Retrospective

Adoption of CECL

Loan Loss Reserve PCD Credit Mark Est. CECL Day 1 Impact

  • This illustration excludes additional provision expense to be taken in future 2020 quarters.

NASDAQ: IBTX

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Focus on Performance and Results

Earnings Per Share (Diluted)

Efficiency Ratio

$3.45

$3.04

$2.36 $2.88 $2.97

$2.21

$5.08

$4.47

$4.33 $4.46

59.71%

56.13%

54.99%

57.49%

53.01%

52.35%

52.34%

51.46%

50.47%

45.95%

2015

2016

2017

2018

2019

EPS (2)

Adjusted EPS (1)

2015

2016

2017

2018

2019

Efficiency Ratio

Adjusted Efficiency Ratio (1)

Return on Average Assets

Return on Tangible Common Equity

1.39%

1.35%

1.12%

1.03%

0.93%

0.98% 0.96%

0.88%

1.51%

1.32%

18.85%

17.58%

15.61%

15.65%

17.06%

16.55%

13.96%

14.78%

13.10%

13.47%

2015

2016

2017

2018

2019

ROAA

Adjusted ROAA (1)

2015

2016

2017

2018

2019

ROTCE

Adjusted ROTCE (1)

(1)

Adjusted (non-GAAP) metrics. See Appendix for reconciliation to the closest applicable GAAP metrics.

NASDAQ: IBTX

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(2)

The year ended December 31, 2017, includes a $5.528 million charge to re-measure deferred taxes as a result of the

enactment of the Tax Cuts and Jobs Act ("TCJA").

Delivering Shareholder Value

Tangible Book Value Per Share1 ($)

We have consistently grown tangible book value

per share each year since our IPO.

$30.00

$30.08

We have returned capital to our shareholders

through our quarterly dividend and by repurchasing

$28.99

$27.44

our company's common stock.

$25.00

Our significant insider ownership helps ensure

$23.76

that shareholder interests are well-represented both

at the board table and on a day-to-day basis inside

$20.00

$21.19

the company.

$17.85

Annual Dividend Per Share

$15.00

$15.89

$16.15

$1.00

$10.00

$0.54

$5.00

$0.34

$0.40

$0.32

$0.24

$-

2014

2015

2016

2017

2018

2019

NASDAQ: IBTX

1Adjusted (non-GAAP) metrics. See Appendix for reconciliation to the closest applicable GAAP metrics.

10

2020Q1 Balance Sheet Details

Loan Portfolio Overview

Construction &

Development

10.7%

Agricultural

0.9%

C&I

22.0%

Consumer

0.4%

1-4 Family

Construction

3.2%

1-4 Family

13.3%

$11,021 Million

Loans HFI

LHFI COMPOSITION (3/31/2020)

3/31/2020

$797 Million

Mortgage Warehouse

3/31/2020

Owner Occupied

0.29%

29.8%

CRE

NPAs/LHFI

3/31/2020

49.5%

0.05%

CRE

Non-Owner

NCOs/Avg. Loans

Occupied CRE

2020Q1 Annualized

70.2%

204.97%

Allowance/NPLs

3/31/2020

North

Texas

38.9%

5.09%

2020 YTD Adjusted Loan Yield1

1Adjusted (non-GAAP) metric. Excludes $982 thousand of unexpected income recognized on credit impaired acquired loans.

LHFI BY REGION (3/31/2020)

Colorado

27.1%

Houston 21.5%

Central

Texas

12.5%

NASDAQ: IBTX

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Construction & Development

C&D PORTFOLIO

LOANS > $500 THOUSAND

(3/31/2020)

Land/Land

Development,

21.7%

$1.6 Billion

C&D Portfolio Size

105%

C&D / Bank Regulatory

Capital

3/31/2020

96.2%

CRE

SFRConstruction,

Construction,60.1%

18.2%

Multifamily,

14.5%

Hotel/Motel,

9.6%

Industrial,

5.1%

CRE CONSTRUCTION PORTFOLIO

LOANS > $500 THOUSAND (3/31/2020)

Healthcare,

9.0%

Misc. CRE,

23.6%

Retail, 20.8%

Office, 17.4%

Loans in IBTX Markets

(Texas and Colorado)

$2.3 Million

Average Loan Size

610

C&D Loans

36.2%

Owner Occupied C&D

Loans

NASDAQ: IBTX

13

Commercial Real Estate

CRE COMPOSITION (3/31/2020)

Multifamily, 7.5%

Mixed Use (Non-Retail),

1.9%

Office and Office

Warehouse, 25.4%

Miscellaneous, 6.2%

Restaurant, 2.7%

Mini Storage, 2.8%

Retail, 25.8%

Convenience Store, 2.6%

Church, 2.2%

Healthcare, 6.3%

Daycare/School, 2.4%

Industrial, 8.2%

Hotel/Motel, 6.0%

NASDAQ: IBTX

$5.4 Billion

CRE Loans

3/31/2020

369%

CRE / Regulatory Bank Capital

3/31/2020

14

Retail CRE

RETAIL CRE & C&D COMPOSITION

LOANS > $500 THOUSAND

3/31/2020

Big Box, 2.4%

Mixed Use,

8.9%

Free Standing

  • Single Tenant, 20.1%

Strip Center,

68.6%

$1.7 Billion

Retail Loan Portfolio Size

3/31/2020

1,048

Total Retail Loans

3/31/2020

94.2%

Loans in IBTX Markets

(Texas and Colorado)

$1.6 Million

Average Loan Size

3/31/2020

70

Number of Loans >$5m

3/31/2020

$8.3 Million

Avg. Size of Loans >$5m

3/31/2020

Retail CRE has been a core competency of IBTX for decades. The retail book is comprised of over 1,000 granular loans that have been conservatively underwritten with the same credit principles that have guided IBTX through previous economic cycles.

NASDAQ: IBTX

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Hotel & Motel

  • We maintain a granular book of hotel loans in our markets, the majority of which are branded, limited/select service properties in our core markets across Texas and Colorado.
  • We have very limited exposure to those segments of the hotel industry that have been most impacted by the COVID-19 pandemic (i.e. resort and conference hotels).
  • Construction has continued uninterrupted as an "essential industry" in both TX and CO through the COVID-19 pandemic.

$432.3 Million

Hotel & Motel Loan

Portfolio Size

3/31/2020

$5.0 Million

Average Loan Size

3/31/2020

57.3%

Average LTV

3/31/2020

Hotel Loans by Type

Hotel Loans by Location

Hotel Loans by Product Type

81.5%

40.8%

17.0%

4.1%

78.9%

8.7%

18.5%50.5%

Full Service Brand

Limited/Select Service Brand

CRE Construction & Development

Texas

Colorado

Other

Boutique/Independent

NASDAQ: IBTX

16

Energy Lending

  • We have a small, conservatively-underwritten energy book that is mostly of recent vintage.
  • By volume, the exploration and production segment of the energy portfolio is secured by 46% oil/liquids assets and 54% by natural gas assets.
  • Energy assets are well-diversified by basin across the United States.
  • The majority of our loans have hedging in place, and those loans that do not have hedging in place are personally guaranteed.

NASDAQ: IBTX

$181.5 Million

Size of Energy Portfolio

3/31/2020

86.7% / 13.3%

E&P Loans / Services Loans

3/31/2020

4.0%

Energy Reserve / Energy Loans

3/31/2020

1.6%

Energy Loans / Total LHFI

3/31/2020

Energy by Type

$millions

$157.4 $24.1

E&P Services

17

Securities Portfolio

Our investment portfolio consists of a diversified mix of liquid, low-risk securities designed to help augment the bank's liquidity position and manage interest rate risk toward our target "net neutral" position.

INVESTMENT PORTFOLIO COMPOSITION

3/31/2020

U.S. Treasury

Securities, 4.6%

CRA, 2.7%

Agency

Securities, 16.0%

Corporates, 0.5%

Taxable

Municipals, 2.3%

Mortgage-Backed

Securities, 42.0%

Tax-Exempt

Municipals, 31.9%

NASDAQ: IBTX

As of March 31, 2020:

2.7%

Yield

4.36

Duration

7.0%

of Total Assets

$1.1 Billion

Portfolio Size

18

Deposit Mix & Pricing

DEPOSIT MIX

3/31/2020

IRAs, 0.7%

Noninterest-Bearing

Demand, 26.6%

CDs >$100k, 7.4%

CDs <$100k, 2.2%

Brokered CDs, 0.5%

Money Market, 15.5%

Interest-Bearing

Checking, 28.8%

Public Funds, 13.6%

Savings, 4.7%

NASDAQ: IBTX

As of March 31, 2020:

$11,883 Million

Total Deposits

0.95%

Cost of Deposits1

1.29%

Avg. Interest-Bearing Rate

26.6%

Noninterest-Bearing Deposits

1Average rate for total deposits.

19

Capital

Holding Company Capital Ratios as of 03/31/2020

12.05%

10.38%

9.67%

9.95%

10.00%

8.94%

8.00%

6.50%

5.00%

TCE Ratio (1)

Tier 1 Leverage Ratio

CET1 Ratio

Tier 1 Ratio

Total Capital Ratio

Minimum Required to Be Considered Well Capitalized Under Basel III

NASDAQ: IBTX

(1) Adjusted (non-GAAP) metrics. See Appendix for reconciliation to the closest applicable GAAP metrics.

20

2020Q1 Results & COVID-19 Update

COVID-19 Update

Employees, Customers & Communities

  • The Company is supporting the health and safety of its employees and customers through responsible operations.
    • All branches currently operate on a "drive-thru only" or "lobby appointment only" model.
    • The Company has implemented a work-from-home plan where corporate employees work remotely.
    • Extra precautions are being taken to safeguard health and safety in branch facilities.
  • To help facilitate the economic recovery, the Company is participating in the Coronavirus Aid, Relief and Economic Security Act (CARES Act) Paycheck Protection Program (PPP) by originating these Small Business Administration (SBA) loans for its customers. As of April 27, 2020, the Company has received SBA authorization for over 4,600 PPP loans totaling over $730 million in aggregate for existing customers.
  • The Company is working with borrowers on a case by case basis to provide temporary relief as appropriate.
  • The Company has made donations totaling $100,000 to support food banks across its footprint, which will provide 355,000 meals to those most vulnerable during the crisis.

Capital, Liquidity & Credit

  • Capital remains strong, with ratios well above the standards to be considered well-capitalized under regulatory requirements, with an estimate total capital ratio of 12.05%, leverage ratio of 9.67%, and (non-GAAP) tangible common equity (TCE) ratio of 8.94% as of March 31, 2020.
  • Liquidity remains strong, with cash and securities representing approximately 13.1% of assets as of March 31, 2020. The Company maintains the ability to access considerable sources of contingent liquidity at the Federal Home Loan Bank and the Federal Reserve.
  • Asset quality remains solid, reflecting a long history of resilient credit quality and disciplined underwriting that the Company has built over three decades.

NASDAQ: IBTX

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2020Q1 Results

For the quarter ended March 31, 2020, the Company reported:

  • Net income of $44.2 million, or $1.03 per diluted share and adjusted (non-GAAP) net income of $43.4 million, or $1.01 per diluted share;
  • Return on average assets of 1.19% and adjusted (non- GAAP) return on average assets of 1.17%;
  • Return on average equity of 7.50%, (non-GAAP) return on tangible equity of 13.92%, and adjusted (non-GAAP) return on tangible equity of 13.66%, and;
  • Organic loan growth of 3.4% for the quarter, annualized.

NASDAQ: IBTX

GAAPAdjusted1

$1.03

$1.01

EPS

Adj. EPS

$44.2 Million

$43.4 Million

Net Income

Adj. Net Income

51.68%

51.17%

Efficiency Ratio

Adj. Eff. Ratio

1.19%

1.17%

ROAA

Adj. ROAA

13.92%

13.66%

ROTCE

Adj. ROTCE

1Adjusted (non-GAAP) metrics. See Appendix for reconciliation to the closest applicable GAAP metrics.

23

2020Q1 Selected Financials

$ in thousands, except per share data

As of and for the Quarter Ended

Selected Balance Sheet Data

March 31, 2020

December 31, 2019

March 31, 2019

Total Assets

15,573,868

14,958,207

14,145,383

LHFI, Excluding Mortgage Warehouse Loans

11,020,920

10,928,653

10,692,183

Mortgage Warehouse Loans

796,609

687,317

251,258

Total Deposits

11,882,766

11,941,336

11,239,426

Total Borrowings (Other Than Junior Subordinated Debentures)

1,152,860

527,251

538,425

Total Stockholders' Equity

2,386,285

2,339,773

2,234,202

Selected Earnings and Profitability Data

Net Interest Income

123,241

128,069

121,652

Net Interest Margin

3.76%

3.81%

4.05%

Adjusted Net Interest Margin1

3.73%

3.79%

4.01%

Noninterest Income

14,511

18,229

16,424

Noninterest Expense

74,368

80,343

86,595

Net Income

44,167

50,236

37,131

Adjusted Net Income2

43,354

56,799

52,028

Basic EPS

1.03

1.17

0.85

Adjusted Basic EPS2

1.01

1.32

1.19

Diluted EPS

1.03

1.17

0.85

Adjusted Diluted EPS2

1.01

1.32

1.19

Return on Average Assets

1.19%

1.32%

1.08%

Adjusted Return on Average Assets2

1.17%

1.49%

1.51%

1Adjusted net interest margin, excludes unexpected income recognized on credit impaired acquired loans of $982, $791, and $1,016 respectively. 2Adjusted (non-GAAP) metrics. See Appendix for reconciliation to the closest applicable GAAP metrics.

NASDAQ: IBTX

24

NASDAQ: IBTX

Contact Information

Investors & Analysts

For more information, please contact:

Paul Langdale

SVP, Director of Corporate Development Direct - (469) 301-2637

Email - plangdale@ibtx.com

25

Appendix: Non-GAAP Reconciliation

APPENDIX

Supplemental Information - Reconciliation of Non-GAAP Financial Measures (Unaudited)

Reconciliation of Adjusted Net Income, EPS, Efficiency Ratio and Profitability Ratios - Quarterly Periods

As of and for the Quarter Ended

($ in thousands except per share data)

March 31, 2020

December 31, 2019

March 31, 2019

Net Interest Income - Reported

(a)

$

123,241

$

128,069

$

121,652

Unexpected income recognized on credit impaired acquired loans

(982)

(791)

(1,016)

Adjusted Net Interest Income

(b)

122,259

127,278

120,636

Provision Expense - Reported

(c)

8,381

1,609

3,224

Noninterest Income - Reported

(d)

14,511

18,229

16,424

Loss on sale of loans

42

-

-

Gain on sale of trust business

-

(1,319)

-

Gain on sale of other real estate

(25)

(24)

-

Gain on sale of securities available for sale

(356)

(10)

(245)

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

63

-

(9)

Recoveries on loans charged off prior to acquisition

(84)

(425)

(1,311)

Adjusted Noninterest Income

(e)

14,151

16,451

14,859

Noninterest Expense - Reported

(f)

74,368

80,343

86,595

Separation expense

-

(3,421)

-

OREO impairment

-

(377)

(436)

Impairment of assets

(126)

-

-

COVID-19 expense - equipment and community support

(262)

-

-

Acquisition expense

(1,008)

(6,619)

(19,171)

Adjusted Noninterest Expense

(g)

72,972

69,926

66,988

Income Tax Expense - Reported

(h)

10,836

14,110

11,126

Adjusted Net Income (1)

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

$

43,354

$

56,799

$

52,028

Average shares for basic EPS

(j)

43,011,496

42,951,701

43,759,348

Average shares for diluted EPS

(k)

43,020,055

42,951,701

43,759,348

Reported Basic EPS

(a - c + d - f - h) / (j)

$

1.03

$

1.17

$

0.85

Reported Diluted EPS

(a - c + d - f - h) / (k)

$

1.03

$

1.17

$

0.82

Adjusted Basic EPS

(i) / (j)

$

1.01

$

1.32

$

1.19

Adjusted Diluted EPS

(i) / (k)

$

1.01

$

1.32

$

1.19

EFFICIENCY RATIO

Amortization of other intangible assets

(l)

$

3,176

$

3,175

$

3,235

Reported Efficiency Ratio

(f - l) / (a + d)

51.68%

52.75%

60.37%

Adjusted Efficiency Ratio

(g - l) / (b + e)

51.17%

46.44%

47.05%

PROFITABILITY (2)

Total Average Assets

(m)

$

14,965,628

$

15,091,382

$

13,975,192

Total Average Stockholders Common Equity

(n)

$

2,369,225

$

2,326,176

$

2,219,533

Total Average Tangible Common Equity (3)

(o)

$

1,276,545

$

1,230,344

$

1,111,668

Reported Return on Average Assets

(a - c + d - f - h) / (m)

1.19%

1.32%

1.08%

Reported Return on Average Common Equity

(a - c + d - f - h) / (n)

7.50%

8.57%

6.78%

Reported Return on Average Common Tangible

(a - c + d - f - h) / (o)

13.92%

16.20%

13.55%

Adjusted Return on Average Assets

(i) / (m)

1.17%

1.49%

1.51%

Adjusted Return on Average Common Equity

(i) / (n)

7.36%

9.69%

9.51%

Adjusted Return on Tangible Common Equity

(i) / (o)

13.66%

18.32%

18.98%

  1. Assumes an adjusted effective tax rate of 21.3%, 21.3%, 20.3%, for the quarters ended March 31, 2020, December 31, 2019 and March 31, 2019, respectively.
  2. Annualized.

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

27

APPENDIX

Supplemental Information - Reconciliation of Non-GAAP Financial Measures (Unaudited)

Reconciliation of Adjusted Net Income, EPS, Efficiency Ratio and Profitability Ratios - Annual Periods

For the Year Ended December 31,

($ in thousands except per share data)

2019

2018

2017

2016

2015

Net Interest Income - Reported

(a)

$

504,757

$

326,252

$

265,478

$

183,806

$

154,098

Unexpected income recognized on credit impaired acquired loans

(5,120)

(3,711)

(4,063)

(1,765)

(1,272)

Adjusted Net Interest Income

(b)

499,637

322,541

261,415

182,041

152,826

Provision Expense - Reported

(c)

14,805

9,860

8,265

9,440

9,231

Noninterest Income - Reported

(d)

78,176

42,224

41,287

19,555

16,128

Gain on sale of loans

(6,779)

-

(351)

-

(116)

(Gain) loss on sale of branch

(1,549)

-

(2,917)

43

-

Gain on sale of trust business

(1,319)

-

-

-

-

Gain on sale of other real estate

(875)

(269)

(850)

(62)

(290)

(Gain) loss on sale of securities available for sale

(275)

581

(124)

(4)

(134)

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

585

(123)

21

(32)

358

Recoveries on loans charged off prior to acquisition

(2,101)

(962)

(1,182)

-

-

Adjusted Noninterest Income

(e)

65,863

41,451

35,884

19,500

15,946

Noninterest Expense - Reported

(f)

321,864

198,619

176,813

113,790

103,198

Separation expense

(3,421)

-

-

(2,575)

-

OREO impairment

(1,801)

(85)

(1,412)

(106)

(35)

IPO related stock grants

-

(136)

(508)

(543)

(624)

Impairment of assets

(1,173)

-

-

-

-

Acquisition expense

(42,744)

(8,958)

(17,259)

(3,121)

(3,954)

Adjusted Noninterest Expense

(g)

272,725

189,440

157,634

107,445

98,585

Income Tax Expense - Reported

(h)

53,528

31,738

45,175

26,591

19,011

Adjusted Net Income (1)

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

$

219,582

$

132,183

$

88,878

$

56,563

$

41,056

Average shares for basic EPS

(j)

43,245,418

29,599,119

25,636,292

18,501,663

17,321,513

Average shares for diluted EPS

(k)

43,245,418

29,599,119

25,742,362

18,588,309

17,406,108

Reported Basic EPS(3)

(a - c + d - f - h) / (j)

$

4.46

$

4.33

$

2.98

$

2.89

$

2.23

Reported Diluted EPS(3)

(a - c + d - f - h) / (k)

$

4.46

$

4.33

$

2.97

$

2.88

$

2.21

Adjusted Basic EPS(3)

(i) / (j)

$

5.08

$

4.47

$

3.47

$

3.06

$

2.37

Adjusted Diluted EPS(3)

(i) / (k)

$

5.08

$

4.47

$

3.45

$

3.04

$

2.36

EFFICIENCY RATIO

Amortization of other intangible assets

(l)

$

12,880

$

5,739

$

4,639

$

1,964

$

1,555

Reported Efficiency Ratio

(f - l) / (a + d)

53.01%

52.35%

56.13%

54.99%

59.71%

Adjusted Efficiency Ratio

(g - l) / (b + e)

45.95%

50.47%

51.46%

52.34%

57.49%

PROFITABILITY

Total Average Assets

(m)

$

14,555,315

$

9,478,937

$

7,966,421

$

5,469,542

$

4,395,552

Total Average Stockholders Common Equity

(n)

$

2,267,103

$

1,476,688

$

1,139,573

$

635,864

$

540,489

Total Average Tangible Common Equity (2)

(o)

$

1,164,915

$

751,911

$

568,071

$

362,287

$

294,133

Reported Return on Average Assets

(a - c + d - f - h) / (m)

1.32%

1.35%

0.96%

0.98%

0.88%

Reported Return on Average Common Equity (3)

(a - c + d - f - h) / (n)

8.50%

8.69%

6.71%

8.42%

7.13%

Return on Average Tangible Common Equity(3)

(a - c + d - f - h) / (o)

16.55%

17.06%

13.47%

14.78%

13.10%

Adjusted Return on Average Assets

(i) / (m)

1.51%

1.39%

1.12%

1.03%

0.93%

Adjusted Return on Average Common Equity(3)

(i) / (n)

9.69%

8.95%

7.80%

8.90%

7.60%

Adjusted Return on Tangible Common Equity(3)

(i) / (o)

18.85%

17.58%

15.65%

15.61%

13.96%

(1)

Assumes an adjusted effective tax rate of 21.0%, 19.7%, 32.4%, 33.2%, and 32.6% for the years ended December 31, 2019, 2018, 2017, 2016, and 2015, respectively.

(2)

Excludes average balance of goodwill and net other intangible assets and preferred stock.

28

(3)

2015 net income adjusted to exclude 2015 YTD preferred stock dividend of $240.

APPENDIX

Supplemental Information - Reconciliation of Non-GAAP Financial Measures (Unaudited)

Reconciliation of Tangible Common Equity to Tangible Assets and Tangible Book Value Per Common Share

($ in thousands, except per share information)

March 31, 2020

December 31, 2019

December 31, 2018

December 31, 2017

December 31, 2016

December 31, 2015

Tangible Common Equity

Total common stockholders equity

$

2,386,285

$

2,339,773

$

1,606,433

$

1,336,018

$

672,365

$

603,371

Adjustments:

Goodwill

(994,021)

(994,021)

(721,797)

(621,458)

(258,319)

(258,643)

Other intangible assets, net

(97,565)

(100,741)

(45,042)

(43,244)

(14,669)

(16,357)

Tangible Common Equity

$

1,294,699

$

1,245,011

$

839,594

$

671,316

$

399,377

$

328,371

Tangible Assets

Total Assets

$

15,573,868

$

14,958,207

$

9,849,965

$

8,684,463

$

5,852,801

$

5,055,000

Adjustments:

Goodwill

(994,021)

(994,021)

(721,797)

(621,458)

(258,319)

(258,643)

Other intangible assets, net

(97,565)

(100,741)

(45,042)

(43,244)

(14,669)

(16,357)

Tangible Assets

$

14,482,282

$

13,863,445

$

9,083,126

$

8,019,761

$

5,579,813

$

4,780,000

Common shares outstanding

43,041,776

42,950,228

30,600,582

28,254,893

18,870,312

18,399,194

Tangible Common Equity To Tangible Assets

8.94%

8.98%

9.24%

8.37%

7.16%

6.87%

Book value per common share

$55.44

$54.48

$52.50

$47.28

$35.63

$32.79

Tangible book value per common share

$30.08

$28.99

$27.44

$23.76

$21.16

$17.85

29

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Independent Bank Group Inc. published this content on 27 May 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 May 2020 21:52:06 UTC