Independent Bank reports Q3 EPS 79c, consensus 73c

Reports Q3 Net interest income was $109M for third quarter 2023 compared to $147.3 M for third quarter 2022 and $113.6M for second quarter 2023. The decrease from the prior year was primarily due to the increased funding costs on our deposit products and FHLB advances due to Fed rate increases over the last year offset to a lesser extent by increased earnings on interest earning assets, primarily loans and interest-bearing cash accounts. The prior year decrease also reflects lower acquired loan accretion for the year over year period. The decrease from the linked quarter was primarily due to continued increases in deposit funding costs offset by lower interest expense on FHLB advances due to a $948.7M reduction in average balances as well as increased earnings on loans due to growth. The third quarter 2023 includes $940 thousand in acquired loan accretion compared to $2.1M in third quarter 2022 and $870 thousand in second quarter 2023. “Our third quarter results illustrate our through-cycle growth story, strong balance sheet, and consistent performance on credit quality. We were pleased to report healthy core loan growth for the quarter as our teams of bankers capitalized on renewed activity from our longtime customers across the Texas and Colorado markets. In addition, we took tangible steps to further strengthen our balance sheet and reported just one basis point of annualized charge-offs for the quarter,” said Independent Bank Group Chairman & CEO David R. Brooks. “As we finish the year, we continue to be encouraged by the strength of our loan and deposit pipelines, the continued repricing of our fixed-rate assets, and the sustained economic tailwinds across our footprint. We remain disciplined and focused on executing our strategic plan, pursuing healthy growth, and delivering exceptional service to our customers across Texas and Colorado.”