Independent Bank Group Inc (IBTX) Reports Q3 Earnings and Declares Quarterly Dividend
Independent Bank Group Inc (NASDAQ:IBTX) reports Q3 net income of $32.8 million, down from $52.4 million in Q3 2022.
Adjusted net income for Q3 2023 was $32.6 million, compared to $54.9 million for the same period in 2022.
The company declares a quarterly cash dividend of $0.38 per share, payable on November 16, 2023.
IBTX shows strong capital ratios, well above regulatory requirements, with an estimated total capital ratio of 11.89%.
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Independent Bank Group Inc (NASDAQ:IBTX) released its Q3 earnings report on October 24, 2023. The company reported a net income of $32.8 million, or $0.79 per diluted share, for the quarter ended September 30, 2023. This is a decrease compared to the net income of $52.4 million, or $1.27 per diluted share, for the same period in 2022. The adjusted net income for Q3 2023 was $32.6 million, or $0.79 per diluted share, compared to $54.9 million, or $1.33 per diluted share, for Q3 2022.
Financial Highlights and Performance
Despite the decrease in net income, IBTX demonstrated resilience with a strong balance sheet and disciplined expense management. The company reported organic loan growth of 4.5% annualized for the quarter, excluding warehouse. Nonperforming assets were 0.33% of total assets, and net charge-offs were 0.01% annualized for the quarter. Total noninterest expense was $81.3 million for the quarter, and the loan to deposit ratio decreased to 92.7% at quarter-end compared to 95.1% at the end of the second quarter.
IBTX's capital remains strong, with ratios well above the standards to be considered well-capitalized under regulatory requirements. The estimated total capital ratio was 11.89%, the leverage ratio was 9.09%, and the (non-GAAP) tangible common equity (TCE) ratio was 7.35%.
Company Commentary
Our third quarter results illustrate our through-cycle growth story, strong balance sheet, and consistent performance on credit quality. We were pleased to report healthy core loan growth for the quarter as our teams of bankers capitalized on renewed activity from our longtime customers across the Texas and Colorado markets. We remain disciplined and focused on executing our strategic plan, pursuing healthy growth, and delivering exceptional service to our customers across Texas and Colorado.
- Independent Bank Group Chairman & CEO David R. Brooks.
Dividend Announcement
In addition to the earnings report, the company also announced that its Board of Directors declared a quarterly cash dividend of $0.38 per share of common stock. The dividend will be payable on November 16, 2023, to stockholders of record as of the close of business on November 2, 2023.
Looking Ahead
As the company moves forward, it continues to focus on its strategic plan and delivering exceptional service to its customers. With strong capital ratios and disciplined expense management, Independent Bank Group Inc (NASDAQ:IBTX) is well-positioned to navigate the financial landscape.
This article first appeared on GuruFocus.
