Raymond James Texas Bank Tour
November 2017
David Brooks, Chairman, CEO and President
Michelle Hickox, EVP and CFO
Exhibit 99.1
Safe Harbor Statement
1
From time to time, our comments and releases may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act
of 1995 (the “Act”). Forward-looking statements can be identified by words such as “believes,” “anticipates,” “expects,” “forecast,” “guidance,” “intends,”
“targeted,” “continue,” “remain,” “should,” “may,” “plans,” “estimates,” “will,” “will continue,” “will remain,” variations on such words or phrases, or
similar references to future occurrences or events in future periods; however, such words are not the exclusive means of identifying such statements.
Examples of forward-looking statements include, but are not limited to: (i) projections of revenues, expenses, income or loss, earnings or loss per share, and
other financial items; (ii) statements of plans, objectives, and expectations of Independent Bank Group or its management or Board of Directors; (iii)
statements of future economic performance; and (iv) statements of assumptions underlying such statements. Forward-looking statements are based on
Independent Bank Group’s current expectations and assumptions regarding its business, the economy, and other future conditions. Because forward-looking
statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. Independent Bank
Group’s actual results may differ materially from those contemplated by the forward-looking statements, which are neither statements of historical fact nor
guarantees or assurances of future performance. Many possible events or factors could affect our future financial results and performance and could cause
such results or performance to differ materially from those expressed in forward looking statements. These factors include, but are not limited to, the
following: (1) our ability to sustain our internal growth rate and our total growth rate; (2) changes in local, regional, national, and international economic
conditions and the impact they may have on us and our customers and our assessment of that impact; (3) changes in the level of nonperforming assets and
charge-offs; (4) changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting
requirements; (5) concentration of our loan portfolio in commercial real estate loans and changes in the values and sales volume of commercial real estate;
(6) our ability to continue to identify acquisition targets and successfully acquire and integrate the operations of desirable financial institutions; (7) our
dependence on our management team and our ability to attract, motivate and retain qualified personnel; (8) our access to debt and equity markets and our
overall cost of funding our operations; (9) technological changes, including the potential impact of technology and "FinTech" entities on the banking industry
generally; (10) cybersecurity attacks and breaches of our digital information systems and the liability resulting from any such cybersecurity breach; (11)
adverse conditions in the securities markets that lead to impairment in the value of securities in our investment portfolio; (12) inflation, deflation, changes in
market interest rates, developments in the securities market, and monetary fluctuations; (13) the timely development and acceptance of new products and
services and perceived overall value of these products and services by customers; (14) changes in consumer spending, borrowings, and savings habits; (15)
the ability to increase market share and control expenses; (16) changes in the competitive environment among banks, bank holding companies, and other
financial service providers; (17) the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities, and
insurance) with which we and our subsidiaries must comply; (18) the effect of changes in accounting policies and practices, as may be adopted by the
regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board, and other accounting standard
setters; (19) the costs and effects of legal and regulatory developments including the resolution of legal proceedings; (20) the effect of catastrophic events,
including war, acts of terrorism, and weather related events that may affect general economic conditions; and (21) our success at managing the risks involved
in the foregoing items; and (22) the other factors that are described in the Company’s Annual Report on Form 10-K filed on March 8, 2017, under the
heading “Risk Factors”, and other reports and statements filed by the Company with the SEC. Any forward-looking statement made by the Company in this
release speaks only as of the date on which it is made. Factors or events that could cause the Company’s actual results to differ may emerge from time to
time, and it is not possible for the Company to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement,
whether as a result of new information, future developments or otherwise, except as may be required by law.
(1) Non-GAAP financial measure. See Appendix for reconciliation.
(2) Excludes income recognized on acquired loans of $905.
Company Snapshot
Overview Branch Map as of October 7, 2017
DFW Metropolitan
Colorado
• Headquartered in McKinney, Texas
• 100+ years of operating history
• 70 banking offices
• Dallas-Fort Worth metropolitan area
• Greater Austin area
• Houston metropolitan area
• Colorado Front Range area
• Acquired six financial institutions, adding $4.9 billion in assets, since IPO
in 2013
• Ninth largest bank by deposits headquartered in Texas
Financial Highlights as of and for the
Quarter Ended September 30, 2017
Balance Sheet Highlights ($ in millions)
Total Assets $ 8,891
Total Loans Held for Investment 6,365
Total Deposits 6,873
Equity 1,281
Asset Quality
Nonperforming Asset Ratio 0.28 %
Nonperforming Loans to Total Loans 0.24
Net Charge-off Ratio (annualized) —
Capital Ratios
Tier 1 Risk Based 9.60 %
Total Risk Based 11.72
Tangible Common Equity to Tangible Assets 7.62
Profitability
Net Income $ 23.5
Adjusted Net Interest Margin (2) 3.80 %
Adjusted Efficiency Ratio (1) 51.19
Adjusted Return on average assets 1.13
2
Houston Metropolitan
Greater Austin
Third Quarter Key Highlights
3
• Adjusted (non-GAAP) net income was $24.8 million, or $0.89 per
diluted share, compared to $22.7 million, or $0.82 per diluted share,
for second quarter 2017, representing 9.2% increase
• Increase in adjusted (non-GAAP) return on average assets to 1.13%,
up from second quarter 2017 of 1.08%
• Improved adjusted (non-GAAP) efficiency ratio of 51.2%,
compared to 53.2% for second quarter 2017
• Organic loan growth annualized for the quarter of 6.9% despite the
impact of Hurricane Harvey on the Houston market
• Continued strong credit quality metrics
Third Quarter Selected Financial Data
($ in thousands except per share data) As of and for the Quarter Ended
Balance Sheet Data
September 30,
2017 June 30, 2017
September 30,
2016
Linked Quarter
Change Annual Change
Total assets $ 8,891,114 $ 8,593,979 $ 5,667,195 3.5 % 56.9 %
Loans held for investment (gross, excluding
mortgage warehouse purchase loans) 6,226,343 6,119,305 4,360,690 1.7 42.8
Mortgage warehouse purchase loans 138,561 120,217 — 15.3 100.0
Total deposits 6,872,631 6,669,288 4,416,493 3.0 55.6
Total borrowings (excluding trust preferred
securities) 683,492 584,349 577,974 17.0 18.3
Total capital 1,281,460 1,259,592 643,253 1.7 99.2
Earnings and Profitability Data
Net interest income $ 72,857 $ 69,500 $ 45,737 4.8 % 59.3 %
Net interest margin 3.85 % 3.81 % 3.66 % 1.0 5.2
Non-interest income $ 12,130 $ 10,995 $ 4,932 10.3 145.9
Non-interest expense 47,904 51,328 26,887 (6.7 ) 78.2
Net income 23,514 18,134 14,504 29.7 62.1
Basic EPS $ 0.85 $ 0.65 $ 0.78 30.8 9.0
Diluted EPS $ 0.84 $ 0.65 $ 0.78 29.2 7.7
Adjusted net interest margin (2) 3.80 % 3.78 % 3.65 % 0.5 4.1
Adjusted net income (1) $ 24,829 $ 22,746 $ 14,819 9.2 67.5
Adjusted basic EPS (1) $ 0.89 $ 0.82 $ 0.80 8.5 11.3
Adjusted diluted EPS (1) $ 0.89 $ 0.82 $ 0.80 8.5 11.3
4
(1) See Appendix for Non-GAAP reconciliation
(2) Non-GAAP financial measure. Excludes income recognized on acquired loans of $905 $572 and $116, respectively.
5
Among Strongest Economies in USA
• Texas ranks #3 for Fortune 500 companies with 50 companies headquartered in Texas (2017)
• Forbes list Texas #4 as best state for business and #1 in economic climate (2016)
• Second fastest economic growth and third fastest job growth over past five years
• Headquarters to 109 of the1,000 largest public and private companies in the United States
• Population - 28.4 million, 2nd largest State (2017)
• Third fastest-growing state with a growth rate of 1.75% in 2017
• Projected household income growth of 9.51% through 2023 versus 8.86% for the Nation (2017)
• Texas unemployment rate of 4.0% which is more favorable than the United States at 4.2% (September 2017)
• Home to six top universities and eleven professional sports teams
• U.S. News ranks three of the major metro areas in their top 20 in the 100 Best Places to Live in the USA 2017
(#1) Austin (#15) Dallas-Fort Worth (#20) Houston
• Three out of four of Texas’ major metro areas were ranked in the top 15 on Forbes’ The Best Cities For Jobs 2017.
(Forbes, May, 2017)
(#1) Dallas (#7) Austin (#12) San Antonio
Source: SNL Financial, Forbes, World Population Review, Texas Wide Open Spaces, U.S. Census Bureau, Bureau of Labor Statistics, Dallas Office of Economic Development, Dallas Chamber of
Commerce, Austin Chamber of Commerce, Greater Houston Partnership, Denver.org., Choose Colorado, Select Georgia, Denver Post, U.S. News
Texas
Colorado
• Forbes list Colorado #5 as best state for business and #2 in economic climate (2016)
• Colorado is expected to have the second fastest job growth over the next five years per EMSI data.
• Population - 5.7 million, 21st largest State (2017)
• Second fastest-growing state with a 2017 growth rate of 1.82%
• Projected household income growth of 9.54% through 2021 versus 8.86% for the Nation (2017)
• Colorado unemployment rate of 2.5% which is more favorable to United States at 4.2% (September 2017)
• Home to six top universities and five professional sports teams
• U.S. News ranks two of the major metro areas in their top 20 in the 100 Best Places to Live in the USA 2017
(#2) Denver (#11) Colorado Springs
• Colorado consistently ranks among the top five states for business
• High levels of education are a key factor in the booming growth of the area's economy and workforce.
• Denver was ranked #11 in the top 15 on Forbes’ The Best Cities For Jobs 2017. (Forbes, May, 2017)
6
Market Highlights
Source: SNL Financial, World Population Review, Forbes, Dallas.org, U.S. Census Bureau, Bureau of Labor Statistics, Dallas Office of Economic Development, Dallas Chamber of Commerce,
Austin Chamber of Commerce, Greater Houston Partnership, Denver.org., Choose Colorado, Select Georgia, Denver Post, U.S. News, Dallas news, Houston .org
(1) Based on deposit market share as of June 2017.
IBTX operates in five of the top twenty The Best Places For
Business And Careers (Forbes.com, 2017 Ranking)
(#4) Denver
(#8) Austin
(#10) Dallas
(#17) Fort Collins
(#18) Colorado Springs
Metropolitan Statistical Area(1) IBTX
Market
Rank
# of
IBTX
Branches
Total
Population
Dallas-Fort Worth-Arlington, TX 12 38 7,418,556
Houston-The Woodlands-Sugar Land, TX 23 10 6,980,780
Austin-Round Rock, TX 11 6 2,130,664
Sherman-Denison, TX 3 6 129,797
Waco, TX 11 2 270,857
Colorado Springs, CO 11 4 729,498
Greeley, CO 10 5 304,882
Denver-Aurora-Lakewood, CO 45 2 2,933,089
Fort Collins, CO 22 1 350,005
Sterling, CO 8 1 21,946
Boulder, CO 27 1 329,524
Non MSA Counties N/A 3 15,072
Total 79 21,614,670
DFW Metroplex/North Texas Region
• The seventh largest MSA in the United States (2016)
• 26% of total state population
• Ranked 4th in U.S. MSA population growth (2016)
• 656 locally-headquartered companies with 1,000+ employees
Austin/Central Texas Region
• Austin is the 11th largest city in the United States
• Fastest Growing MSA among top 50 MSAs in U.S. (2016)
• Headquarters to several public high tech companies
Houston Region
• The fifth largest MSA in the United States (2016)
• 24% of total state population
• Ranked 1st in U.S. MSA population growth (2016)
Denver
• 21st most populous city in the United States
• Annual population growth of 1.9% per year since 2010
Colorado Springs
• Ranked 4th in U.S. MSA population growth (2016)
• Home to the largest Military base in Colorado
• 2nd largest city in Colorado
Greeley
• Annual population growth of 2.1% per year since 2010
Fort Collins
• The 4th largest city in Colorado
• Ranked 12th in U.S. MSA population growth (2016)
• Fort Collins is the 4th largest city in Colorado
IBTX Demonstrated Growth
7
Total Assets
(1) See Appendix for non-GAAP Reconciliation
Interest Income, Net Interest Income and NIM
Earnings Per Share and Adjusted Earnings Per Share Trends (diluted)
8
(1) See Appendix for non-GAAP Reconciliation.
Adjusted Efficiency Ratio (1)
Deposit Mix and Pricing
(1)
(1) Average rate for total deposits
2017 YTD Average Rate for Interest-bearing deposits: 0.61%
9
Loan Portfolio Composition
Loan Composition at 09/30/2017 CRE Loan Composition at 09/30/2017
Loans by Region at 09/30/2017
10
Commercial Real Estate (CRE)
and Construction and Development (C&D)
11
Retail CRE and C&D Composition at 09/30/2017 CRE and C&D Concentrations at 09/30/2017
• 593 Retail Loans
• 33 Loans > $5MM
• 1.69 AVG DSCR (1)
• 59% AVG LTV (1)
(1) Loans greater than $500 thousand
Loans > $500 thousand
Energy Lending
(in millions)
12
Historically Strong Credit Culture
13
NPLs / Loans
Note: Financial data as of and for quarter ended June 30, 2017 for peer data and September 30, 2017 for IBTX. Interim chargeoff data annualized. .
Source: U.S. and Texas Commercial Bank numbers from SNL Financial.
NCOs / Average Loans
Total Capital, Tier 1 and TCE/TA Ratios (1)
Capital
(1) See Appendix for non-GAAP Reconciliation 14
Experienced Management Team
15
Name / Title Background
David R. Brooks
Chairman of the Board, CEO & President, Director
· -38 years in the financial services industry; 30 years at Independent Bank
· -Active in community banking since the early 1980s - led the investor group that acquired
Independent Bank in 1988
Daniel W. Brooks
Vice Chairman, Chief Risk Officer, Director
· -34 years in the financial services industry; 28 years at Independent Bank
· -Active in community banking since the late 1980s
Brian E. Hobart
Vice Chairman, Chief Lending Officer
· -24 years in the financial services industry; 13 years at Independent Bank
· -Since 2009 has functioned as Chief Lending Officer of the Company
Michelle S. Hickox
EVP, Chief Financial Officer
· -27 years in the financial services industry; 5 years at Independent Bank
· -Previously a Financial Services Audit Partner at RSM US LLP
James C. White
EVP, Chief Operations Officer
· -Over 30 years in the financial services industry
· -Previously served as EVP/COO of Texas Capital Bank
Appendix
16
For the Quarters Ended
($ in thousands except per share data) September 30, 2017 June 30, 2017 March 31, 2017 December 31, 2016 September 30, 2016
Net Interest Income - Reported (a) 72,857 69,500 47,867 46,526 45,737
Income recognized on acquired loans (905 ) (572 ) (123 ) (51 ) (116 )
Adjusted Net Interest Income (b) 71,952 68,928 47,744 46,475 45,621
Provision Expense - Reported (c) 1,873 2,472 2,023 2,197 2,123
Noninterest Income - Reported (d) 12,130 10,995 4,583 5,224 4,932
Gain on sale of loans (338 ) (13 ) — — —
Loss on sale of branch 127 — — — 43
Loss (gain) on sale of OREO and repossessed
assets
— 26 — — (4 )
Gain on sale of securities — (52 ) — — —
Loss (gain) on sale of premises and equipment 21 (1 ) (5 ) — 9
Recoveries on charged off loans acquired (994 ) (123 ) — — —
Adjusted Noninterest Income (e) 10,946 10,832 4,578 5,224 4,980
Noninterest Expense - Reported (f) 47,904 51,328 28,028 27,361 26,887
Senior leadership restructuring — — — — —
OREO impairment (917 ) (120 ) — — (51 )
IPO related stock grant and bonus expense (128 ) (127 ) (125 ) (127 ) (104 )
Acquisition expense (3,013 ) (7,278 ) (459 ) (1,075 ) (384 )
Adjusted Noninterest Expense (g) 43,846 43,803 27,444 26,159 26,348
Adjusted Net Income (1) (b) - (c) + (e) - (g) = (h) 24,829 22,746 15,990 15,541 14,819
Average shares for basic EPS (i) 27,797,779 27,782,584 18,908,679 18,613,975 18,478,289
Average shares for diluted EPS (j) 27,901,579 27,887,485 19,015,810 18,716,614 18,568,622
Adjusted Basic EPS (h) / (i) $ 0.89 $ 0.82 $ 0.85 $ 0.83 $ 0.80
Adjusted Diluted EPS (h) / (j) $ 0.89 $ 0.82 $ 0.84 $ 0.83 $ 0.80
EFFICIENCY RATIO
Amortization of core deposit intangibles (k) $ 1,409 $ 1,410 $ 492 $ 492 $ 492
Reported Efficiency Ratio (f - k) / (a + d) 54.71 % 62.01 % 52.50 % 51.92 % 52.09 %
Adjusted Efficiency Ratio (g - k) / (b + e) 51.19 % 53.15 % 51.51 % 49.65 % 51.10 %
Supplemental Information - Non-GAAP Financial Measures (unaudited)
Reconciliation of Adjusted Net Income, Adjusted Efficiency Ratio and Adjusted EPS--Quarterly Periods
(1) Assumes actual effective tax rate of 33.2%, 32.1%, 30.0%, 33.4%, 33.0% and 33.2%, for the quarters ended September 30, 2017, June 30, 2017, March 31, 2017, December 31, 2016 and
September 30, 2016, respectively.
17
APPENDIX
Reconciliation of Adjusted Net Income, Adjusted Efficiency Ratio and Adjusted EPS--Annual Periods
(1) Assumes actual effective tax rate of 32.8%, 32.8%, 32.6% and 33.2% for the years ended December 31, 2013, 2014, 2015 and 2016, respectively.
18
Supplemental Information - Non-GAAP Financial Measures (unaudited)
For the Year Ended December 31,
($ in thousands except per share data) 2013 2014 2015 2016
Net Interest Income - Reported (a) 74,933 124,145 154,098 183,806
Write-off of debt origination warrants 223 — — —
Income recognized on acquired loans (1,399 ) (1,960 ) (1,272 ) (1,765 )
Adjusted Net Interest Income (b) 73,757 122,185 152,826 182,041
Provision Expense - Reported (c) 3,822 5,359 9,231 9,440
Noninterest Income - Reported (d) 11,021 13,624 16,128 19,555
Gain on sale of loans — (1,078 ) (116 ) —
Loss on sale of branch — — — 43
Gain on Sale of OREO/repossessed assets (1,507 ) (71 ) (290 ) (62 )
Gain on sale of securities — (362 ) (134 ) (4 )
Loss (gain) on Sale of premises and equipment 18 22 358 (32 )
Adjusted Noninterest Income (e) 9,532 12,135 15,946 19,500
Noninterest Expense - Reported (f) 57,671 88,512 103,198 113,790
Senior leadership restructuring — — — (2,575 )
Adriatica expenses (806 ) (23 ) — —
OREO Impairment (642 ) (22 ) (35 ) (106 )
FDIC refund 504 — — —
IPO related stock grant and bonus expense (948 ) (630 ) (624 ) (543 )
Registration statements — (619 ) — —
Core system conversion — (265 ) — —
Acquisition Expense (1,956 ) (9,237 ) (3,954 ) (3,121 )
Adjusted Noninterest Expense (g) 53,823 77,716 98,585 107,445
Adjusted Net Income (1) (b) - (c) + (e) - (g) = (h) 17,232 34,427 41,056 56,563
Average shares for basic EPS (i) 11,143,726 15,458,666 17,321,513 18,501,663
Average shares for diluted EPS (j) 11,212,194 15,557,120 17,406,108 18,588,309
Adjusted Basic EPS (h) / (i) $ 1.55 $ 2.23 $ 2.37 $ 3.06
Adjusted Diluted EPS (h) / (j) $ 1.54 $ 2.21 $ 2.36 $ 3.04
EFFICIENCY RATIO
Amortization of core deposit intangibles (k) $ 703 $ 1,281 $ 1,555 $ 1,964
Reported Efficiency Ratio (f - k) / (a + d) 66.28 % 63.32 % 59.71 % 54.99 %
Adjusted Efficiency Ratio (g - k) / (b + e) 63.78 % 56.91 % 57.49 % 52.34 %
APPENDIX
Supplemental Information - Non-GAAP Financial Measures (unaudited)
Reconciliation of Tangible Common Equity to Tangible Assets
APPENDIX
19
Tangible Common Equity To Tangible Assets 9/30/17 6/30/17 3/31/17 12/31/16 12/31/2015 12/31/14 12/31/13
($ in thousands)
Tangible Common Equity
Total common stockholders' equity $ 1,281,460 $ 1,259,592 $ 688,469 $ 672,365 $ 603,371 $ 516,913 $ 233,772
Adjustments:
Goodwill (606,701 ) (607,263 ) (258,319 ) (258,319 ) (258,643 ) (229,457 ) (34,704 )
Core deposit intangibles, net (47,198 ) (48,992 ) (13,685 ) (14,177 ) (16,357 ) (12,455 ) (3,148 )
Tangible Common Equity $ 627,561 $ 603,337 $ 416,465 $ 399,869 $ 328,371 $ 275,001 $ 195,920
Tangible Assets
Total Assets $ 8,891,114 $ 8,593,979 $ 6,022,614 $ 5,852,801 $ 5,055,000 $ 4,132,639 $ 2,163,984
Adjustments:
Goodwill (606,701 ) (607,263 ) (258,319 ) (258,319 ) (258,643 ) (229,457 ) (34,704 )
Core deposit intangibles (47,198 ) (48,992 ) (13,685 ) (14,177 ) (16,357 ) (12,455 ) (3,148 )
Tangible Assets $ 8,237,215 $ 7,937,724 $ 5,750,610 $ 5,580,305 $ 4,780,000 $ 3,890,727 $ 2,126,132
Tangible Common Equity To Tangible Assets 7.62 % 7.60 % 7.24 % 7.17 % 6.87 % 7.07 % 9.21 %
Contact Information
20
Corporate Headquarters Analysts/Investors:
Independent Bank Group, Inc. Michelle Hickox
1600 Redbud Blvd Executive Vice President and Chief Financial Officer
Suite 400 (972) 562-9004
McKinney, TX 75069 mhickox@ibtx.com
Media:
972-562-9004 Telephone Peggy Smolen
972-562-7734 Fax Marketing & Communications Director
www.ibtx.com (972) 562-9004
psmolen@ibtx.com