Independent Bank Group, Inc. (NASDAQ:IBTX) Q4 2023 Earnings Conference Call January 23, 2024 8:30 AM ET

Company Participants

David Brooks - Chairman and CEO
Paul Langdale - CFO
Dan Brooks - Vice Chairman
Ankita Puri - EVP and Chief Legal Officer

Conference Call Participants

Brandon King - Truist Securities
Brady Gailey - KBW
Matt Olney - Stephens Inc.
Michael Rose - Raymond James
Stephen Scouten - Piper Sandler
Brett Rabatin - Hovde Group

Operator

Greetings. Welcome to Independent Bank Group’s Fourth Quarter 2023 Earnings Call. [Operator Instructions]. Please note, this conference is being recorded. I’ll now turn the conference over to Ankita Puri, EVP and Chief Legal Officer. Ms. Puri, you may now begin.

Ankita Puri

Good morning, and welcome to the Independent Bank Group fourth 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 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 rule. 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.

And with that, I will turn it over to David.

David Brooks

Thank you, Ankita. Good morning, everyone, and thanks for joining the call today. Fourth quarter earnings totaled $14.9 million or $0.36 per diluted share. Excluding the one-time impact of the $8.3 million FDIC special assessment and other one-timers, our adjusted fourth quarter earnings were $25.5 million or $0.62 per diluted share. During the quarter, we were pleased to see the continuation of healthy organic core loan growth, which came in seasonally strong at 11% annualized, as pent-up demand from our relationship borrowers drove originations higher. For the full year, loan growth totaled 4.2%. This healthy growth will help support NII on a going forward basis, and was driven by the needs of our core customers growing Texas and Colorado economies. Credit quality remains excellent, with low non-performing assets and net charge-offs totaling just one basis point annualized for the second quarter in a row. And our capital ratios ended the quarter in a healthy position, with a tier one capital ratio of 9.93%, the total capital ratio at 11.57%. Notably, our TCE ratio strengthened to 7.55% as of December 31, and we grew tangible book value by 5.8% to $32.90 cents per share.