Independent Bank Group, Inc. (NASDAQ:IBTX) Q2 2023 Earnings Conference Call July 25, 2023 8:30 AM ET

Company Participants

Ankita Puri - Executive Vice President & Chief Legal Officer

David Brooks - Chairman & Chief Executive Officer

Paul Langdale - Chief Financial Officer

Dan Brooks - Vice Chairman

Conference Call Participants

Brady Gailey - KBW

Brandon King - Truist Securities

Michael Rose - Raymond James

Stephen Scouten - Piper Sandler

Matt Olney - Stephens

Brett Rabatin - Hovde Group

Operator

Thank you. I will now turn the call over to Ankita Puri, Executive Vice President and Chief Legal Officer.

Ankita Puri

Good morning and welcome to the Independent Bank Group Second Quarter 2023 Earnings Call. We appreciate you joining us. The related earnings press release and investor presentation can be accessed on our website at ir.ifinancial.com.

I would like to remind you that remarks made today may include forward-looking statements. Those statements are subject to risks and uncertainties that could cause actual and expected results to differ. We intend such statements to be covered by Safe Harbor provisions for forward-looking statements. Please see page five of the text in the release or page two of the slide presentation for our Safe Harbor statement. All comments made during today's call are subject to that statement.

Please note that if we give guidance about future results, that guidance is a statement of management's beliefs at the time the statement is made, and we assume no obligation to publicly update guidance.

In this call, we will discuss several financial measures considered to be non-GAAP under the SEC's rules. Reconciliations of these financial measures to the most directly comparable GAAP financial measures are included in our release.

I'm joined this morning by our Chairman and Chief Executive Officer, David Brooks, our Vice Chairman, Dan Brooks; and our Chief Financial Officer, Paul Langdale. At the end of their remarks, David will open the call to questions.

With that, I will turn it over to David.

David Brooks

Thank you, Ankita. Good morning everyone and thanks for joining the call today. Second quarter adjusted earnings totaled $33.7 million or $0.82 per diluted share. During the quarter, NII was impacted by higher deposit costs as the expected term rate rose more than expected and non-interest-bearing deposits shifted into interest-bearing alternatives.

As Paul will discuss, during the second quarter, we strengthened our balance sheet by reducing our loan-to-deposit ratio to 95%, reducing FHLB advances by $925 million, expanding our contingent liquidity availability and commencing the repayment of our holding company line of credit. These efforts help optimize our earnings trajectory on a go-forward basis and decrease risk in an uncertain environment.