Independent Bank Group Inc (IBTX) Q1 2021 Earnings Call Transcript

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Independent Bank Group Inc (NASDAQ:IBTX)
Q1 2021 Earnings Call
Apr 27, 2021, 8:30 a.m. ET

Contents:

• Prepared Remarks
• Questions and Answers
• Call Participants

Prepared Remarks:

Operator

Greetings, and welcome to the Independent Bank Group Q1 2021 Earnings Call. [Operator Instructions]

I would now like to turn the conference over to Paul Langdale, Senior Vice President and Director of Corporate Development.

Paul Langdale — Senior Vice President and Director of Corporate Development

Good morning, everyone. I am Paul Langdale, Senior Vice President and Director of Corporate Development for Independent Bank Group, and I would like to welcome you to the Independent Bank Group first quarter 2021 Earnings Call. We appreciate you joining us. The related earnings press release and the slide presentation can be accessed on our website at ibtx.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 a number of 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 David Brooks, our Chairman, CEO and President; Dan Brooks, our Vice Chairman and Chief Risk Officer; and Michelle Hickox Executive Vice President and CFO. At the end of their remarks, David will open the call to questions.

With that, I will turn it over to David.

David R. Brooks — Chairman, President & Chief Executive Officer

Thanks, Paul. Good morning, everyone, and thank you for joining us on today’s call. We are pleased to report a solid start to the year, that reflects the continued hard work of our team members across Texas and Colorado.

For the first quarter, our Company reported adjusted earnings of $1.39 per share, recorded double-digit organic deposit growth and posted additional increases to our already strong capital ratios. Furthermore, credit quality metrics remained strong with just 1 basis point of annualized net charge-offs for the quarter. Given the continued strength of our earnings and balance sheet, our Board of Directors has authorized an increase in our regular quarterly dividend to $0.32 per share.

Year-to-date, we have originated an additional $273 million in PPP loans to help our customers through the final stretches of the pandemic. As we anticipated, loan growth continued to be impacted by the pandemic related pay-offs during the first quarter. However, we are beginning to see encouraging signs of accelerating loan growth and loan demand. As the pace of the economic recovery quickens, we anticipate net positive loan growth in the second quarter with a more normalized loan growth returning in the back half of the year.

With that overview, I’ll turn the call over to Michelle for more detail on the operating results for the quarter.

Michelle S. Hickox — Executive Vice President and Chief Financial Officer

Thank you, David. Good morning, everyone. Please note that Slide 6 of the presentation includes selected financial data for the quarter.

Our first quarter adjusted net income was $60.1 million or $1.39 per diluted share compared with $43.4 million or $1 per diluted share for the first quarter last year and $58 million or $1.34 per diluted share for the linked…