Independent Bank Group Inc. (NASDAQ:IBTX) Q2 2024 Earnings Conference Call July 25, 2024 9:00 AM ET
Company Participants
Brad Kessel - President, Chief Executive Officer
Gavin Mohr - Executive Vice President, Chief Financial Officer
Joel Rahn - Executive Vice President, Head of Commercial Banking
Conference Call Participants
Brendan Nosal - Hovde Group
Matt - KBW
Nathan Race - Piper Sandler
Operator
Hello all and welcome to Independent Bank Corporation Reports 2024 Second Quarter Results.
My name is Ezra and I will be coordinating your call today. If you would like to ask a question, please press star followed by one on your telephone keypad now. If you change your mind, please press star followed by two.
I will now hand you over to your host, Brad Kessel, President and CEO. Brad, please go ahead.
Brad Kessel
Good morning and welcome to today’s call. Thank you for joining us for Independent Bank Corporation’s conference call and webcast to discuss the company’s second quarter 2024 results. I am Brad Kessel, President and Chief Executive Officer, and joining me is Gavin Mohr, EVP and Chief Financial Officer, and Joel Rahn, EVP and Head of Commercial Banking.
Before we begin today’s call, I would like to direct you to important information on Page 21 of our presentation, specifically the cautionary note regarding forward-looking statements. If anyone does not already have a copy of the press release issued by us today, you can access it at the company’s website, independentbank.com.
The agenda for today’s call will include prepared remarks followed by a question and answer session, and then closing remarks.
Independent Bank Corporation reported second quarter 2024 net income of $18.5 million or $0.88 per diluted share, versus net income of $14.8 million or $0.70 per diluted share in the prior year period. This represents a return on average assets of 1.44% and a return on average equity of 17.98% respectively.
I am proud of our team and very pleased with our second quarter 2024 results, driving organic growth on both sides of the balance sheet. Overall, loans increased 1.2% annualized despite a higher than normal level of commercial payoffs and pay-downs, while core deposits were up 4.8% annualized. We were able to generate net interest margin expansion, increasing to 3.40% from 3.30% on a linked quarter basis, and net income interest income growth on both a linked quarter and a year-over-year quarterly basis. We believe that our expenses continue to be well managed and we continue to see improved operational scale from strategic investments we have made in recent years.