Exhibit 99.1 NASDAQ: IBTX Investor Presentation 4th Quarter, 2020
Safe Harbor Statement The numbers as of and for the quarter ended September 30, 2020 are unaudited. This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the financial condition, results of operations, business plans and the future performance of Independent Bank Group, Inc. (“IBTX”). Words such as “anticipates,” “believes,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “projects,” “could,” “may,” “should,” “will” or other similar words and expressions are intended to identify these forward-looking statements. These forward-looking statements are based on IBTX’s current expectations and assumptions regarding IBTX’s business, the economy, and other future conditions. Because forward-looking statements relate to future results and occurrences, they are subject to inherent uncertainties, assumptions, risks, and changes in circumstances that are difficult to predict. Many possible events or factors could materialize or IBTX’s underlying assumptions could prove incorrect and affect IBTX’s future financial results and performance and could cause actual results or performance to differ materially from anticipated results or performance. Such risks and uncertainties include, among others, risks relating to the coronavirus (COVID-19) pandemic and its effect on U.S. and world financial markets, potential regulatory actions, changes in consumer behaviors and impacts on and modifications to the operations and business of IBTX relating thereto, and the business, economic and political conditions in the markets in which IBTX operates. Except to the extent required by applicable law or regulation, IBTX disclaims any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments. Further information regarding IBTX and factors which could affect the forward-looking statements contained herein can be found in IBTX’s Annual Report on Form 10-K, as amended, for the fiscal year ended December 31, 2019, its Quarterly Reports on Form 10-Q for the periods ended March 31, 2020, June 30, 2020 and September 30, 2020, and its other filings with the Securities and Exchange Commission. NASDAQ: IBTX 2
Safe Harbor Statement (cont.) Non-GAAP Financial Measures In addition to results presented in accordance with GAAP, this presentation contains certain non-GAAP financial measures. These measures and ratios include “adjusted net income,” “tangible book value,” “tangible book value per common share,” “adjusted efficiency ratio,” “tangible common equity to tangible assets,” “return on tangible common equity,” “adjusted return on average assets,” “adjusted return on average common equity,” “adjusted return on tangible common equity,” “adjusted earnings per share,” “adjusted diluted earnings per share,” “adjusted net interest margin,” “adjusted net interest income,” “adjusted noninterest expenses” and “adjusted noninterest income” and are supplemental measures that are not required by, or are not presented in accordance with, accounting principles generally accepted in the United States. We believe that these measures provide useful information to management and investors that is supplementary to our financial condition, results of operations and cash flows computed in accordance with GAAP; however we acknowledge that our financial measures have a number of limitations relative to GAAP financial measures. Certain non-GAAP financial measures exclude items of income, expenditures, expenses, assets, or liabilities, including provisions for loan losses and the effect of goodwill, other intangible assets and income from accretion on acquired loans arising from purchase accounting adjustments, that we believe cause certain aspects of our results of operations or financial condition to be not indicative of our primary operating results. All of these items significantly impact our financial statements. Additionally, the items that we exclude in our adjustments are not necessarily consistent with the items that our peers may exclude from their results of operations and key financial measures and therefore may limit the comparability of similarly named financial measures and ratios. We compensate for these limitations by providing the equivalent GAAP measures whenever we present the non-GAAP financial measures and by including a reconciliation of the impact of the components adjusted for in the non-GAAP financial measure so that both measures and the individual components may be considered when analyzing our performance. A reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures is included at the end of this presentation. NASDAQ: IBTX 3
Overview – Community bank holding company with $17.1 billion in assets and 93 branches across Texas and Colorado. – Innately conservative credit culture with a demonstrated history of maintaining resilient asset quality through previous downturns. – Highly granular loan portfolio with a small average credit size and low hold limits. – Loan growth driven by block-and-tackle community banking: loans made to relationship borrowers across our footprint in Texas and Colorado. – Large insider ownership (14% of shares outstanding) aligns shareholder interests with day-to-day management and decision-making. – Asset/liability neutral interest rate risk position helps mitigate the impact of a volatile interest rate environment. – Disciplined growth both organically and through strategic acquisitions. NASDAQ: IBTX 4
Company Snapshot Independent Bank Group, Inc. NASDAQ: IBTX Financial Highlights Denver, CO as of and for the Quarter Ended September 30, 2020 Balance Sheet Highlights ($ millions) Total Assets $ 17,117 Loans Held for Investment, Excluding $ 11,652 Mortgage Warehouse 1 Mortgage Warehouse Loans $ 1,219 Total Deposits $ 13,798 93 Total Stockholders’ Equity $ 2,476 HEADQUARTERS Profitability Metrics 2 BRANCHES McKinney, TX Adjusted EPS $ 1.38 1,472 Adjusted ROAA 1.42 % EMPLOYEES Adjusted ROTCE 17.29 % FOUNDED IN Adjusted Efficiency Ratio 44.57 % 1988 Asset Quality Metrics 3 NPAs / Assets 0.25 % NPLs / Loans Held for Investment 0.36 % NCOs (Annualized) 0.01 % Capital Ratios Tier 1 Capital / RWA 10.66 % Total Capital / RWA 13.29 % TCE / Tangible Assets1 8.68 % Tier 1 Capital / Avg. Assets 9.15 % 1LHFI includes SBA PPP loans of $825,966 at September 30, 2020. 2Adjusted (non-GAAP) metrics. See Appendix for reconciliation to the closest applicable GAAP metrics. 3Nonperforming assets, which consist of nonperforming loans, OREO and other repossessed assets, totaled $43,197. Nonperforming loans, which consist of nonaccrual loans, loans delinquent 90 days and still accruing interest, and troubled debt restructurings, and excludes loans acquired with deteriorated credit quality, totaled $41,441. 5
Experienced Leadership Team David R. Brooks Chairman, CEO & President Daniel W. Brooks Vice Chairman, Chief Risk Officer Founder – led the investor group that acquired Independent Bank in 37 years in financial services; 31 years at the company. 1988. Mark S. Haynie General Counsel Michelle S. Hickox Chief Financial Officer 37 years of experience representing community banks in corporate, 30 years in financial services; 8 years at the company. regulatory and securities matters. James C. White Chief Operating Officer Michael B. Hobbs Chief Banking Officer 32 years in financial services; 4 years at the company. 25 years in financial services; joined the company in 2019 with the acquisition of Guaranty Bank & Trust, where he served as President. James P. Tippit Corporate Responsibility 14 years in financial services; 9 years at the company. Strong, Diverse Markets Dallas/Ft. Worth – North Texas 40 Branches Our company was founded in North Texas in 1988, and we have since built a large presence in the Dallas/Fort Worth MSA – one of the fastest-growing MSAs in the country, and one of the strongest markets in Texas. Dallas/Fort Worth boasts a diverse economy that has benefited from a continued boom of corporate relocation activity to business-friendly Texas. Denver – Colorado Front Range 32 Branches The Colorado Front Range is one of the strongest and fastest-growing areas of the country. In the 2019 U.S. News & World Report ranking of the best places to live in the United States, Denver came in at No. 2, and Colorado Springs came in at No. 3. The confluence of a diverse economy and strong quality of life indicators has drawn a deep talent pool that helps position the Colorado Front Range for continued growth. Austin – Central Texas 8 Branches This market includes the tech hub of Austin, Texas, which U.S. News & World Report rated the No. 1 best place to live in the United States in its 2019 ranking. The market boasts a growing wave of corporate expansions by tech firms into the Austin market, as well as a thriving public sector presence. Greater Houston 13 Branches The Greater Houston MSA serves for a regional center for international trade, energy and manufacturing. The city is regularly ranked as one of the most diverse cities in the United States, and is the home to numerous universities as well as a thriving medical industry. NASDAQ: IBTX 6
Demonstrated Record of Healthy Growth Growth in Total Assets ($ in millions) $17,117 CAGR Since 2013 (Organic): 37.5% CAGR Since 2013 (Total): 35.9% $14,958 $3,943 – Established history of growing assets both organically and through strategic acquisitions. – Demonstrated expertise in integrating M&A transactions, adding $9.7 billion in acquired assets since our IPO. Entered Colorado – Track record of building scalable platforms for future growth. Market $9,850 $852 $8,684 $2,444 Entered Houston $5,853 Market $5,055 $4,133 $620 $1,671 $2,164 $168 2013 2014 2015 2016 2017 2018 2019 Q3 2020 IPO Date: April 3, 2013 Assets Acquired in Fiscal Year NASDAQ: IBTX Note: Acquired assets includes impact of purchase accounting. 7
Historically Strong Credit Culture NPLs / Loans (1) NCOs / Average Loans (2) 2.67% 2.67% 4.41% 4.15% 4.11% 3.36% 3.43% 2.91% 3.03% 1.64% 2.67% 2.36% 2.07% 1.22% 1.71% 1.12% 1.83% 1.05% 1.89% 1.57% 1.62% 1.31% 1.50% 0.74% 1.44% 1.49% 1.12% 1.13% 0.70% 0.98% 0.54% 0.49% 0.46% 0.48% 0.46% 0.49% 1.14% 0.43% 0.63% 0.33% 0.91% 0.4% 0.28% 0.81% 0.19% 0.16% 0.18% 0.18% 0.16% 0.68% 0.64% 0.31% 0.11% 0.53% 0.21% 0.37% 0.39% 0.32% 0.36% 0.11% 0.12% 0.24% 0.24% 0.06% 0.09% 0.06% 0.07% 0.16% 0.03% 0.02% 0.01% 0.03% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q3 YTD IBTX U.S. Average Texas Average IBTX U.S. Average Texas Average Source: S&P Global. Note: Financial data as of and for the quarter ended June 30, 2020 for U.S. and Texas banking industry aggregate data and for the three months ended September 30, 2020 for IBTX. NASDAQ: IBTX (1) LHFI excludes mortgage warehouse purchase loans. 8 (2) 2020 YTD numbers are annualized.
Loan Loss Coverage IBTX Allowance For Credit Losses – IBTX deferred CECL adoption as as of 9/30/2020 provided under the CARES Act until Illustrative Retrospective Impact of CECL Adoption the earlier of December 31, 2020, or the termination of the President’s national emergency declaration, with a retrospective effective date of January 1, 2020. ~$58 Million – Current anticipated “Day One”, January 1, 2020, impact from the adoption of CECL is estimated to $22 Million boost reserves to approximately 1.44% of loans held for investment (excluding mortgage warehouse): ~$167 Million $87.5 Million $87.5 Million ~1.44% of LHFI (Excluding Mortgage Warehouse) 0.75% of LHFI 9/30/2020 ALLL (Excluding Mortgage Warehouse) – This illustration excludes additional provision expense to be taken in future As of 9/30/2020 Estimated Retrospective 2020 quarters and any changes to Adoption of CECL PCD credit marks. Loan Loss Reserve PCD Credit Mark Est. CECL Day 1 Impact NASDAQ: IBTX 9
Focus on Performance and Results Earnings Per Share (Diluted) Efficiency Ratio $5.08 59.71% $4.47 56.13% 54.99% $4.46 57.49% 53.01% $3.45 $4.33 52.35% $3.04 52.34% 51.46% $2.36 50.47% $2.88 $2.97 $2.21 45.95% 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 EPS (2) Adjusted EPS (1) Efficiency Ratio Adjusted Efficiency Ratio (1) Return on Average Assets Return on Tangible Common Equity 18.85% 1.51% 17.58% 1.39% 15.61% 15.65% 17.06% 1.35% 1.32% 16.55% 1.12% 1.03% 13.96% 14.78% 0.93% 0.98% 13.47% 0.96% 13.10% 0.88% 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 ROAA Adjusted ROAA (1) ROTCE Adjusted ROTCE (1) 1. Adjusted (non-GAAP) metrics. See Appendix for reconciliation to the closest applicable GAAP metrics. NASDAQ: IBTX 2. The year ended December 31, 2017, includes a $5.528 million charge to re-measure deferred taxes as a result of the 10 enactment of the Tax Cuts and Jobs Act (“TCJA”).
Delivering Shareholder Value Tangible Book Value Per Share1 ($) We have consistently grown tangible book value 35 per share each year since our IPO. We have returned capital to our shareholders $32.17 through our quarterly dividend and by repurchasing 30 $31.05 $30.08 our company’s common stock. $28.99 $27.44 Our significant insider ownership helps ensure that shareholder interests are well-represented both 25 at the board table and on a day-to-day basis inside $23.76 the company. $21.19 20 Annual Dividend Per Share $17.85 $1.05 15 $15.89 $16.15 $1.00 10 $0.54 5 $0.40 $0.32 $0.34 $0.24 0 2013 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 2020 2020 Q1 2020 Q2 2020 Q3 NASDAQ: IBTX 1Adjusted (non-GAAP) metrics. See Appendix for reconciliation to the closest applicable GAAP metrics. 11
2020 Q3 Balance Sheet Details
Loan Portfolio Overview Construction & LOAN COMPOSITION (9/30/2020) As of September 30, 2020: Development Agricultural 9.7% 0.7% $11,652 Million LHFI 2 Owner Occupied CRE $1,219 Million 29.7% Mortgage Warehouse C&I 0.36% 28.4% NPAs/LHFI Non-Owner Occupied CRE 0.01% NCOs/Avg. Loans CRE 70.3% 2020 Q3 Annualized 46.7% Consumer 211.12% 0.5% Allowance/NPLs 1-4 Family Construction 2 2.5% LHFI excludes mortgage warehouse purchase loans. 1-4 Family 11.5% North Texas Colorado 40.3% 4.75% LOANS BY REGION (9/30/2020) 26.7% 2020 YTD Adjusted Loan Yield1 1Adjusted (non-GAAP) metric. Excludes $2.6 million of unexpected income recognized on Houston Central credit impaired acquired loans. 21.1% Texas 11.9% NASDAQ: IBTX 13
Construction & Development As of September 30, 2020: C&D PORTFOLIO LOANS > $500 THOUSAND (9/30/2020) $1.6 Billion C&D Portfolio Size 88% C&D / Bank Regulatory Land/Land Capital Development 20.4% 95.7% 1 CRE CRE CONSTRUCTION PORTFOLIO Loans in IBTX Markets Construction LOANS > $500 THOUSAND (Texas and Colorado) 64.6% (9/30/2020) SFR $2.2 Million Construction 1 15.0% Healthcare Average Loan Size 7.9% 585 C&D Loans1 Multifamily Misc. CRE 18.5% 21.3% 33.8% Owner Occupied C&D Loans1 Hotel/Motel 8.3% 1Loans > $500 thousand Retail Office 23.8% Industrial 16.7% 3.5% NASDAQ: IBTX 14
Commercial Real Estate CRE COMPOSITION (9/30/2020) As of September 30, 2020: $6.1 Billion Multifamily 7.7% CRE Loans 325% Mixed Use (Non-Retail) 1.7% Office and Office CRE / Regulatory Bank Capital Warehouse 24.5% $28.0 Million Miscellaneous 7.3% Largest CRE Loan Size $1.2 Million Restaurant 2.9% Average CRE Loan Size Mini Storage 2.8% 29.7% Retail 25.2% Owner Occupied Convenience Store 2.5% Church 2.0% Healthcare 6.2% Daycare/School 2.5% Industrial 8.5% Hotel/Motel 6.2% NASDAQ: IBTX 15
Retail CRE RETAIL CRE & C&D COMPOSITION LOANS > $500 THOUSAND 9/30/2020 As of September 30, 2020: $1.7 Billion Retail Loan Portfolio Size Big Box Mixed Use 10.4% 1.8% $19.6 Million Largest Retail Loan 997 Free Standing / Single Tenant Total Retail Loans 15.2% 95.0% Loans in IBTX Markets (Texas and Colorado) Strip Center 72.6% $1.7 Million Average Loan Size 75 Number of Loans >$5m $8.7 Million Avg. Size of Loans >$5m 54% 1.68x Weighted Average LTV Weighted Average DSCR Pre-Pandemic (March 2020) Pre-Pandemic (March 2020) NASDAQ: IBTX 16
Office CRE Office CRE COMPOSITION 9/30/2020 As of September 30, 2020: $1.6 Billion Total Office CRE Office/Warehouse Owner Occupied $20.8 Million 12.3% Largest Office Loan $1.0 Million Average Loan Size 32.9% Owner Occupied Office Non-Owner Occupied Office/Warehouse 45.1% Non-Owner Occupied 34.3% 22.0% Office/Warehouse Office Owner Occupied 20.6% NASDAQ: IBTX 17
Hotel & Motel As of September 30, 2020: $444.3 Million – We maintain a granular book of hotel loans in our markets, the majority of Hotel & Motel Loan which are branded, limited/select service properties in our core markets Portfolio Size across Texas and Colorado. $5.6 Million – We have very limited exposure to those segments of the hotel industry that Average Loan Size have been most impacted by the COVID-19 pandemic (i.e. resort and conference hotels). 52.7% Average LTV – While we anticipate many of our hotel borrowers to need additional time to recover from pandemic-related economic dislocation, we remain encouraged x by the early signs of recovery in occupancy rates. 1.78 Weighted Average DSCR Pre-Pandemic (March 2020) Hotel Loans by Type Hotel Loans by Property Hotel Loans by Product Location Type 79.4% 14.7% 40.1% 7.9% 77.4% 20.6% 9.0% 50.9% Full Service Brand CRE Limited/Selected Service Brand Construction & Development Texas Colorado Other Boutique/Independent NASDAQ: IBTX 18
Energy Lending As of September 30, 2020: – We have a small, conservatively-underwritten energy book that is mostly of recent vintage. $219.7 Million Size of Energy Portfolio – Energy assets are well-diversified by basin across the United States. 90.5% / 9.5% E&P Loans / Services Loans Energy by Type 6.1% Energy Reserve / Energy Loans 1.9% Energy Loans / Total LHFI $199.0 $20.7 E&P Services NASDAQ: IBTX 19
Provision & Charge-offs $23,121 $ in Thousands NCOs / Avg. Total Loans (1) 0.01% 0.06% 0.07% 0.21% 0.02% 0.05% 0.05% 0.01% $14,805 $8,146 $5,861 $9,860 $8,381 $8,265 $7,620 $5,233 $4,460 $1,439 $1,469 $1,609 $454 $595 $184 2017 2018 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Year Ending Quarter Ending Provision expense Net charge-offs (1) Quarterly metrics are annualized. NASDAQ: IBTX 20 20
Loan Deferral Update as of October 16, 2020 – As of October 16, 2020, 1.2% of our loan accounts* remain in deferral: – 4.5% of our loan balances* remain in deferral 1.2% Number of Loan Accounts* – 2.7% of our loan balances* are on 2nd deferral, or have a 2nd deferral Remaining in Deferral pending 4.5% – As anticipated, the number of deferrals continues to trend downward Amount of Loan Balances* Remaining in Deferral – Hotel loans remain the largest category of loans still in deferral, accounting for 37% of all deferral balances as of October 16th 2.7% Amount of Loan Balances* in 2nd – Retail deferrals have dropped sharply, falling 56% since last update (8/31) Deferral – Office deferrals have dropped sharply, falling 83% since last update (8/31) *Loan accounts and balances used in the denominator exclude PPP and HFS loans. *Loan accounts and balances exclude PPP and HFS loans. Detail on Remaining Deferrals % of Category % of Category % of Category As of October 16, 2020 $ Remaining on 1st $ Granted/Pending 2nd Total $ on Any Balance** Remaining Balance** On/Pending Balance on Any $ in thousands Deferral^ Deferral Deferral on 1st Deferral 2nd Deferral Deferral Hotel Loans $104,545 $99,519 $204,064 23.5% 22.4% 45.9% Retail Loans 41,388 45,928 87,316 2.4% 2.7% 5.1% Office Loans 5,688 12,572 18,260 0.3% 0.8% 1.1% Other CRE and C&D Loans 19,113 135,092 154,205 0.5% 3.8% 4.3% C&I Loans 39,357 32,901 72,258 1.9% 1.6% 3.5% Other Loans 8,241 3,695 11,936 0.3% 0.1% 0.4% Total Loans $218,332 $329,707 $548,039 1.8% 2.7% 4.5% ^ Includes loans whose deferral period has expired, but where payment has not yet been due, received and/or processed. Includes loans that were granted original 6 month deferrals. ** Category balance as of 09/30/2020 NASDAQ: IBTX 21
Securities Portfolio As of September 30, 2020: Our investment portfolio consists of a diversified mix of liquid, low-risk securities designed to help augment the bank’s liquidity position and 2.5% manage interest rate risk toward our target “net neutral” position. Yield 3.50 Duration INVESTMENT PORTFOLIO COMPOSITION 9/30/2020 U.S. Treasury 6.3% Securities of Total Assets 4.6% CRA $1.1 Billion 0.1% Agency Securities Portfolio Size Corporates 19.0% 1.8% Taxable Municipals 2.3% Mortgage-Backed Tax-Exempt Securities Municipals 39.7% 32.5% NASDAQ: IBTX 22
Deposit Mix & Pricing DEPOSIT MIX DEPOSIT GROWTH VS. 9/30/2020 AVERAGE RATE $13,798 $11,941 IRAs 0.6% Noninterest-Bearing CDs > $100k Demand 5.1% 30.3% CDs < $100k 1.08% 1.7% $7,738 Brokered $6,633 0.83% CDs 0.2% Money 0.66% Market Interest-Bearing 18.3% Checking 0.46% 26.6% Public Funds 12.6% 2017 2018 2019 Q3 2020 Savings 4.6% Period Ending Deposits Average YTD Rate (1) 2020 YTD Average Rate for Interest-bearing deposits: 0.92% Total cost of deposits QTD Q3 2020: 0.47% (1) NASDAQ: IBTX Average rate for total deposits 23 23
Consolidated Capital 13.29% 12.56% 12.58% 12.44% 12.05% 11.83% 11.38% 10.60% 10.66% 10.41% 10.38% 10.19% 10.17% 10.24% 10.05% 10.05% 9.95% 9.76% 9.61% 9.57% 9.32% 9.67% 9.15% 8.92% 8.94% 9.24% 8.55% 8.98% 8.94% 8.68% 8.20% 8.37% 8.41% 7.82% 7.17% 12/31/16 12/31/17 12/31/18 12/31/19 2020 Q1 2020 Q2 2020 Q3 Period Ending Common equity tier 1 to risk-weighted assets Tier 1 capital to average assets Total capital to risk-weighted assets Tangible common equity to tangible assets (1) Tier 1 capital to risk-weighted assets NASDAQ: IBTX (1) Adjusted (non-GAAP) metrics. See Appendix for reconciliation to the closest applicable GAAP metrics. 24
2020 Q3 Results
2020 Q3 Results GAAP Adjusted1 For the quarter ended September 30, 2020, the $1.39 $1.38 Adj. EPS Company reported: EPS – Net income of $60.1 million, or $1.39 per diluted share $60.1 Million $59.6 Million and adjusted (non-GAAP) net income of $59.6 million, Net Income Adj. Net Income or $1.38 per diluted share 1.43% 1.42% – Return on average assets of 1.43% and efficiency ratio Return on Average Adj. Return on Assets Average Assets of 44.69% 44.69% 44.57% – Strong organic deposit growth of 14.91%, annualized Efficiency Ratio Adj. Efficiency Ratio – Strong liquidity, with cash and securities representing 14.91% approximately 14.8% of total assets Organic Deposit Growth – Continued solid credit metrics with nonperforming 14.8% assets of 0.25% of total assets and provision for loan Liquidity Ratio losses of $7.6 million 0.25% – Completed the issuance and sale of $130 million of NPAs/Total Assets 4.0% fixed-to-floating rate subordinated debentures 1Adjusted (non-GAAP) metrics. See Appendix for reconciliation to the closest applicable GAAP metrics. NASDAQ: IBTX 26
2020 Q3 Selected Financials $ in thousands, except per share data As of and for the Quarter Ended Selected Balance Sheet Data September 30, 2020 June 30, 2020 September 30, 2019 Total Assets $17,117,007 $16,986,025 $14,959,127 LHFI, Excluding Mortgage Warehouse Loans1 11,651,855 11,690,356 10,936,136 Mortgage Warehouse Loans 1,219,013 903,630 660,650 Total Deposits 13,797,560 13,299,035 11,727,885 Total Borrowings (Other Than Junior Subordinated Debentures) 680,529 1,116,462 767,642 Total Stockholders’ Equity 2,476,373 2,424,960 2,298,932 Selected Earnings and Profitability Data Net Interest Income $132,007 $128,372 $125,393 Net Interest Margin 3.52 % 3.51 % 3.84 % Adjusted Net Interest Margin2 3.48 % 3.50 % 3.82 % Noninterest Income $25,165 $25,414 $27,324 Noninterest Expense 73,409 83,069 76,948 Net Income 60,075 38,693 55,633 Adjusted Net Income3 59,580 49,076 57,827 Basic EPS 1.39 0.90 1.30 Adjusted Basic EPS3 1.38 1.14 1.35 Diluted EPS 1.39 0.90 1.30 Adjusted Diluted EPS3 1.38 1.14 1.35 Return on Average Assets 1.43 % 0.94 % 1.50 % Adjusted Return on Average Assets3 1.42 % 1.20 % 1.56 % 1LHFI includes SBA PPP loans of $825,966 and $823,289 at September 30, 2020 and June 30, 2020, respectively. 2Adjusted net interest margin, excludes unexpected income recognized on credit impaired acquired loans of $1,294, $354, and $618 respectively. 3Adjusted (non-GAAP) metrics. See Appendix for reconciliation to the closest applicable GAAP metrics. NASDAQ: IBTX 27
NASDAQ: IBTX Contact Information Investors & Analysts For more information, please contact: Paul Langdale SVP, Director of Corporate Development Direct – (469) 301-2637 Email – plangdale@ibtx.com 28
Appendix: Non-GAAP Reconciliation
APPENDIX Supplemental Information – Reconciliation of Non-GAAP Financial Measures (Unaudited) Reconciliation of Adjusted Net Income, EPS, Efficiency Ratio and Profitability Ratios – Quarterly Periods As of and for the Quarter Ended ($ in thousands except per share data) September 30, 2020 June 30, 2020 September 30, 2019 Net Interest Income - Reported (a) $132,007 $128,372 $125,393 Unexpected income recognized on credit impaired acquired loans (1,294) (354) (618) Adjusted Net Interest Income (b) 130,713 128,018 124,775 Provision Expense - Reported (c) 7,620 23,121 5,233 Noninterest Income - Reported (d) 25,165 25,414 27,324 Gain on sale of loans — (689) (6,779) Gain on sale of branch — — (1,549) Gain on sale of other real estate — (12) (539) Gain on sale of securities available for sale — (26) — (Gain) loss on sale and disposal of premises and equipment (34) (340) 315 Recoveries on loans charged off prior to acquisition (138) (3,640) (107) Adjusted Noninterest Income (e) 24,993 20,707 18,665 Noninterest Expense - Reported (f) 73,409 83,069 76,948 OREO impairment (46) (738) — Impairment of assets (336) — (1,173) COVID-19 expense (141) (1,451) — Acquisition expense (316) (15,644) (10,885) Adjusted Noninterest Expense (g) 72,570 65,236 64,890 Income Tax Expense - Reported (h) 16,068 8,903 14,903 Net Income - Reported (a) - (c) + (d) - (f) - (h) = (i) $60,075 $38,693 $55,633 Adjusted Net Income (1) (b) - (c) + (e) - (g) = (j) $59,580 $49,076 $57,827 Average shares for basic EPS (k) 43,234,913 43,041,660 42,950,749 Average shares for diluted EPS (l) 43,234,913 43,177,986 42,950,749 Reported Basic EPS (i) / (k) $1.39 $0.90 $1.30 Reported Diluted EPS (i) / (l) $1.39 $0.90 $1.30 Adjusted Basic EPS (j) / (k) $1.38 $1.14 $1.35 Adjusted Diluted EPS (j) / (l) $1.38 $1.14 $1.35 EFFICIENCY RATIO Amortization of other intangible assets (m) $3,175 $3,175 $3,235 Reported Efficiency Ratio (f - m) / (a + d) 44.69% 51.95% 48.27% Adjusted Efficiency Ratio (g - m) / (b + e) 44.57% 41.73% 42.98% PROFITABILITY (2) Total Average Assets (n) $16,713,895 $16,485,556 $14,742,618 Total Average Stockholders Common Equity (o) $2,457,423 $2,418,038 $2,279,878 Total Average Tangible Common Equity (3) (p) $1,371,094 $1,328,568 $1,177,851 Reported Return on Average Assets (i) / (n) 1.43% 0.94% 1.50% Reported Return on Average Common Equity (i) / (o) 9.73% 6.44% 9.68% Reported Return on Average Common Tangible (i) / (p) 17.43% 11.71% 18.74% Adjusted Return on Average Assets (j) / (n) 1.42% 1.20% 1.56% Adjusted Return on Average Common Equity (j) / (o) 9.65% 8.16% 10.06% Adjusted Return on Tangible Common Equity (j) / (p) 17.29% 14.86% 19.48% (1) Assumes an adjusted effective tax rate of 21.1%, 18.7% and 21.1%, for the quarters ended September 30, 2020, June 30, 2020 and September 30, 2019, respectively. (2) Annualized. (3) Excludes average balance of goodwill and net other intangible assets. 30
APPENDIX Supplemental Information – Reconciliation of Non-GAAP Financial Measures (Unaudited) Reconciliation of Adjusted Net Income, EPS, Efficiency Ratio and Profitability Ratios – Annual Periods For the Year Ended December 31, ($ in thousands except per share data) 2019 2018 2017 2016 2015 Net Interest Income - Reported (a) $504,757 $326,252 $265,478 $183,806 $154,098 Unexpected income recognized on credit impaired acquired loans (5,120) (3,711) (4,063) (1,765) (1,272) Adjusted Net Interest Income (b) 499,637 322,541 261,415 182,041 152,826 Provision Expense - Reported (c) 14,805 9,860 8,265 9,440 9,231 Noninterest Income - Reported (d) 78,176 42,224 41,287 19,555 16,128 Gain on sale of loans (6,779) — (351) — (116) (Gain) loss on sale of branch (1,549) — (2,917) 43 — Gain on sale of trust business (1,319) — — — — Gain on sale of other real estate (875) (269) (850) (62) (290) (Gain) loss on sale of securities available for sale (275) 581 (124) (4) (134) Loss (gain) on sale and disposal of premises and equipment 585 (123) 21 (32) 358 Recoveries on loans charged off prior to acquisition (2,101) (962) (1,182) — — Adjusted Noninterest Income (e) 65,863 41,451 35,884 19,500 15,946 Noninterest Expense - Reported (f) 321,864 198,619 176,813 113,790 103,198 Separation expense (3,421) — — (2,575) — OREO impairment (1,801) (85) (1,412) (106) (35) IPO related stock grants — (136) (508) (543) (624) Impairment of assets (1,173) — — — — Acquisition expense (42,744) (8,958) (17,259) (3,121) (3,954) Adjusted Noninterest Expense (g) 272,725 189,440 157,634 107,445 98,585 Income Tax Expense - Reported (h) 53,528 31,738 45,175 26,591 19,011 Net Income - Reported (a) - (c) + (d) - (f) - (h) = (i) $192,736 $128,259 $76,512 $53,540 $38,786 Adjusted Net Income (1) (b) - (c) + (e) - (g) = (j) $219,582 $132,183 $88,878 $56,562 $41,056 Average shares for basic EPS (k) 43,245,418 29,599,119 25,636,292 18,501,663 17,321,513 Average shares for diluted EPS (l) 43,245,418 29,599,119 25,742,362 18,588,309 17,406,108 Reported Basic EPS (i) / (k) $4.46 $4.33 $2.98 $2.89 $2.23 Reported Diluted EPS (i) / (l) $4.46 $4.33 $2.97 $2.88 $2.21 Adjusted Basic EPS (j) / (k) $5.08 $4.47 $3.47 $3.06 $2.37 Adjusted Diluted EPS (j) / (l) $5.08 $4.47 $3.45 $3.04 $2.36 EFFICIENCY RATIO Amortization of other intangible assets (m) $12,880 $5,739 $4,639 $1,964 $1,555 Reported Efficiency Ratio (f - m) / (a + d) 53.01% 52.35% 56.13% 54.99% 59.71% Adjusted Efficiency Ratio (g - m) / (b + e) 45.95% 50.47% 51.46% 52.34% 57.49% PROFITABILITY Total Average Assets (n) $14,555,315 $9,478,934 $7,966,421 $5,469,542 $4,395,552 Total Average Stockholders Common Equity (o) $2,267,103 $1,476,688 $1,139,573 $635,864 $540,489 Total Average Tangible Common Equity (2) (p) $1,164,915 $751,911 $568,071 $362,287 $294,133 Reported Return on Average Assets (i) / (n) 1.32% 1.35% 0.96% 0.98% 0.88% Reported Return on Average Common Equity (3) (i) / (o) 8.50% 8.69% 6.71% 8.42% 7.13% Reported Return on Average Common Tangible (3) (i) / (p) 16.55% 17.06% 13.47% 14.78% 13.10% Adjusted Return on Average Assets (j) / (n) 1.51% 1.39% 1.12% 1.03% 0.93% Adjusted Return on Average Common Equity (3) (j) / (o) 9.69% 8.95% 7.80% 8.90% 7.60% Adjusted Return on Tangible Common Equity (3) (j) / (p) 18.85% 17.58% 15.65% 15.61% 13.96% (1) Assumes an adjusted effective tax rate of 21.0%, 19.7%, 32.4%, 33.2%, and 32.6% for the years ended December 31, 2019, 2018, 2017, 2016, and 2015, respectively. (2) Excludes average balance of goodwill and net other intangible assets and preferred stock. 31 (3) 2015 net income adjusted to exclude 2015 YTD preferred stock dividend of $240.
APPENDIX Supplemental Information – Reconciliation of Non-GAAP Financial Measures (Unaudited) Reconciliation of Tangible Common Equity to Tangible Assets and Tangible Book Value Per Common Share – Quarterly Periods ($ in thousands, except per share information) September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 September 30, 2019 Tangible Common Equity Total common stockholders equity $2,476,373 $2,424,960 $2,386,285 $2,339,773 $2,298,932 Adjustments: Goodwill (994,021) (994,021) (994,021) (994,021) (994,021) Other intangible assets, net (91,215) (94,390) (97,565) (100,741) (106,855) Tangible Common Equity $1,391,137 $1,336,549 $1,294,699 $1,245,011 $1,198,056 Tangible Assets Total Assets $17,117,007 $16,986,025 $15,573,868 $14,958,207 $14,959,127 Adjustments: Goodwill (994,021) (994,021) (994,021) (994,021) (994,021) Other intangible assets, net (91,215) (94,390) (97,565) (100,741) (106,855) Tangible Assets $16,031,771 $15,897,614 $14,482,282 $13,863,445 $13,858,251 Common shares outstanding 43,244,797 43,041,119 43,041,776 42,950,228 42,952,642 Tangible Common Equity To Tangible Assets 8.68% 8.41% 8.94% 8.98% 8.65% Book value per common share $57.26 $56.34 $55.44 $54.48 $53.52 Tangible book value per common share $32.17 $31.05 $30.08 $28.99 $27.89 32
APPENDIX Supplemental Information – Reconciliation of Non-GAAP Financial Measures (Unaudited) Reconciliation of Tangible Common Equity to Tangible Assets and Tangible Book Value Per Common Share – Annual Periods ($ in thousands, except per share information) December 31, 2019 December 31, 2018 December 31, 2017 December 31, 2016 December 31, 2015 Tangible Common Equity Total common stockholders equity $2,339,773 $1,606,433 $1,336,018 $672,365 $603,371 Adjustments: Goodwill (994,021) (721,797) (621,458) (258,319) (258,643) Other intangible assets, net (100,741) (45,042) (43,244) (14,177) (16,357) Tangible Common Equity $1,245,011 $839,594 $671,316 $399,869 $328,371 Tangible Assets Total Assets $14,958,207 $9,849,965 $8,684,463 $5,852,801 $5,055,000 Adjustments: Goodwill (994,021) (721,797) (621,458) (258,319) (258,643) Other intangible assets, net (100,741) (45,042) (43,244) (14,177) (16,357) Tangible Assets $13,863,445 $9,083,126 $8,019,761 $5,580,305 $4,780,000 Common shares outstanding 42,950,228 30,600,582 28,254,893 18,870,312 18,399,194 Tangible Common Equity To Tangible Assets 8.98% 9.24% 8.37% 7.17% 6.87% Book value per common share $54.48 $52.50 $47.28 $35.63 $32.79 Tangible book value per common share $28.99 $27.44 $23.76 $21.19 $17.85 33
