Independent Bank Group (IBTX) investor relations material

Executive summary

• Q3 2024 net income was $20.4 million ($0.49 per diluted share), down from $32.8 million ($0.79 per share) year-over-year, but improved from a Q2 net loss driven by a $518.0 million goodwill impairment charge.

• Adjusted net income was $20.6 million ($0.50 per share), compared to $32.6 million ($0.79 per share) year-over-year and $24.9 million ($0.60 per share) sequentially.

• Annualized return on average equity for Q3 2024 was 4.24% and return on average assets was 0.44%.

• A definitive merger agreement with SouthState Corporation was signed in May 2024, with the transaction expected to close in Q1 2025.

• Quarterly dividend of $0.38 per share declared, payable November 14, 2024.

Financial highlights

• Net interest income for Q3 2024 was $106.8 million, down 2.0% year-over-year but up from $105.1 million in Q2 2024.

• Net interest margin for Q3 2024 was 2.50%, down from 2.60% year-over-year but up from 2.47% sequentially.

• Loan yields rose to 6.07% from 6.00% in Q2 and 5.70% year-over-year.

• Noninterest income was $13.5 million, nearly flat year-over-year.

• Noninterest expense increased $8.6 million year-over-year, mainly from higher salaries, technology, and FDIC assessments.

Outlook and guidance

• The merger with SouthState Corporation is expected to close in Q1 2025, subject to regulatory approvals and customary conditions.

• Management expects further capital and liquidity improvements as the mortgage warehouse business winds down.

• Additional merger-related expenses are anticipated for the remainder of 2024.