Kroll Bond Rating Agency Releases Independent Bank Group, Inc. Earnings Comment - Fourth Quarter 2014

NEW YORK--()--Kroll Bond Rating Agency (KBRA) releases Independent Bank Group, Inc. Earnings Comment for fourth quarter 2014. During the fourth quarter of 2014, Independent Bank Group, Inc. (the “Bank”) (NASDAQ:IBTX) reported strong earnings results with net income of $10 million for the quarter ending December 31, 2014 compared to $8.9 million for the quarter ending September 30, 2014 and $4.3 million for the quarter ending December 31, 2013. For the year ending December 31, 2014, net income increased to $28.8 million compared to net income of $19.8 million (pro forma after tax net income of $16.2 million) for the year ending December 31, 2013. However, Independent Bank Group’s 7.2% exposure to the energy sector may adversely impact asset quality and earnings in the coming quarters in 2015 and into 2016. Overall, IBTX’s fourth quarter 2014 results remain in line with KBRA’s assigned senior unsecured long-term rating of BBB and a subordinated rating of BBB- to IBTX, and a senior deposit rating of BBB+ to the subsidiary bank, Independent Bank (“Independent Bank Group, Inc.”, published July 14, 2014).

  • Independent Bank, the wholly owned subsidiary of IBTX had approximately 7% of its loan portfolio with companies with direct energy related exposure as of year-end 2014.
  • IBTX indicates that all of its energy related loans are secured and that one energy credit with a balance of $4.4 million was classified as of December 31, 2014.
  • KBRA notes that IBTX has strong loan loss reserves and adequate capital to weather potential losses from its energy portfolio.

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About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

Contacts

Analytical:
Kroll Bond Rating Agency
Isabelle Nana, 240-394-4153
Associate
inana@kbra.com
or
Marjan Riggi, 646-731-2354
Managing Director
mriggi@kbra.com
or
Christopher Whalen, 646-731-2366
Senior Managing Director
cwhalen@kbra.com

Contacts

Analytical:
Kroll Bond Rating Agency
Isabelle Nana, 240-394-4153
Associate
inana@kbra.com
or
Marjan Riggi, 646-731-2354
Managing Director
mriggi@kbra.com
or
Christopher Whalen, 646-731-2366
Senior Managing Director
cwhalen@kbra.com