Independent Bank Group, Inc. (IBG) reported significant financial changes for the three and nine months ended September 30, 2024, compared to the same periods in 2023. The company experienced a net income of $20.4 million for Q3 2024, down from $32.8 million in Q3 2023, resulting in a basic and diluted earnings per share of $0.49, compared to $0.79 in the prior year. For the nine-month period, IBG reported a net loss of $448.9 million, or $(10.85) per share, contrasting sharply with a net income of $28.3 million, or $0.69 per share, in 2023. This decline was primarily attributed to a goodwill impairment charge of $518 million recorded in Q2 2024 due to the announced merger with SouthState Corporation (SSB).
Total interest income for Q3 2024 increased to $241.7 million from $222.7 million in Q3 2023, while total interest expense rose to $134.9 million from $113.7 million. Consequently, net interest income slightly decreased to $106.8 million from $109.0 million year-over-year. For the nine months, net interest income fell to $315.0 million from $350.6 million in 2023, reflecting a decrease in net interest margin from 2.82% to 2.47%.
Noninterest income for Q3 2024 was $13.5 million, a slight decrease from $13.6 million in Q3 2023. The nine-month noninterest income also declined to $39.8 million from $40.5 million. Noninterest expenses surged significantly, with Q3 2024 expenses totaling $89.9 million, up from $81.3 million in Q3 2023, and nine-month expenses skyrocketing to $785.3 million from $356.4 million, largely due to increased salaries and acquisition-related costs.
As of September 30, 2024, total assets decreased to $18.6 billion from $19.0 billion at year-end 2023, primarily due to the goodwill impairment and a reduction in loans and available-for-sale securities. Total deposits increased to $16.0 billion, up from $15.7 billion, while cash and cash equivalents rose significantly to $1.3 billion from $722.0 million.
The company announced a proposed merger with SSB, expected to close in Q1 2025, with shareholders receiving 0.60 shares of SSB for each share of IBG. The merger is anticipated to enhance IBG's market position, although it has incurred approximately $2.8 million in related expenses to date.
About Independent Bank Group, Inc.
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