Independent Bank Group, Inc. (NASDAQ:IBTX) Q1 2023 Earnings Conference Call April 20, 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

Brad Milsaps - Piper Sandler

Brady Gailey - KBW

Michael Rose - Raymond James

Brett Rabatin - Hovde Group

Brandon King - Truist Securities

Matt Olney - Stephens Inc.

Operator

Greetings and welcome to the Independent Bank Group’s First Quarter 2023 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Ankita Puri, Executive Vice President and Chief Legal Officer for Independent Bank Group. Thank you. You may begin.

Ankita Puri

Good morning, and welcome to the Independent Bank Group first 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.ifinancials.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 5 of the text in the release, or Page 2 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. For the first quarter we reported a GAAP net loss of $37.5 million or $0.91 per diluted share, which includes the impact of the $100 million legal settlement expense that was previously disclosed on February 27. This onetime payment settles litigation ongoing since 2009, involving Stanford International Bank and related entities that was inherited in connection with our 2014 acquisition of Bank of Houston. The settlement will resolve all current and potential future claims related to the Stanford entities and we believe the settlement could be in our shareholders’ best interests as it enables us to avoid the cost, risk and distraction of protracted litigation.