Independent Bank Group (IBTX) in McKinney, Texas, reported loan growth and higher expenses in the fourth quarter.
The $2.2 billion-asset company earned $4.3 million in the fourth quarter. Profits fell 28% from pretax earnings a year earlier but were basically unchanged from pro forma after-tax net income. Earnings per share of 35 cents were 2 cents less than the average estimate of analysts polled by Bloomberg.
Independent's net interest income rose 19%, to $20 million, because of higher loan volume. Its loan book grew by 26% from the end of 2012, to $1.6 billion. About 20% percent of the growth was organic; the rest was tied to the company's purchase of Collin Bank. The net interest margin widened by 18 basis points, to 4.23%.
Noninterest income fell 6%, to $3.4 million, because of a decline in mortgage fee income that was partially offset by higher revenue from deposit service fees and sales of other real estate.
Noninterest expense climbed 18%, to $15.7 million, largely because of increases in compensation and occupancy costs related to acquisitions, the hiring of lending personnel and the opening of its new headquarters building.
Independent cut its loan-loss provision by 5%, to $883,000, as net chargeoffs fell.
Independent agreed in November to pay $170 million in cash and stock for BOH Holdings in Houston in a deal that should close in the second quarter.