Independent Bank Group, Inc. (IBTX) | Investment Case

1. Company Snapshot

1.a. Company Description

Independent Bank Group, Inc.operates as the bank holding company for Independent Bank that provides various commercial banking products and services to businesses, professionals, and individuals in the United States.It accepts various deposit products, including checking and savings accounts, demand deposits, money market accounts, and certificates of deposit.

The company also provides commercial real estate loans; commercial construction, land, and land development loans; residential real estate loans; single-family interim construction loans; commercial loans comprising SBA guaranteed loans, business term loans, equipment lease financing, lines of credit, and energy related loans; agricultural loans for farmers and ranchers; consumer installment loans comprising loans to purchase cars, boats, and other recreational vehicles; and residential mortgages, as well as mortgage warehouse purchase loans.In addition, it offers debit cards, online and mobile banking, eStatement, bank-by-mail, and direct deposit services; and business accounts and management services, including analyzed business checking, business savings, and treasury management services.As of December 31, 2021, the company operated 93 full-service branches.

Independent Bank Group, Inc.was founded in 2002 and is headquartered in McKinney, Texas.

Show Full description

1.b. Last Insights on IBTX

The merger with SouthState Corporation, completed on January 1, 2025, may lead to integration challenges and potential cultural changes. The acquisition could result in cost savings, but also potential job losses and branch consolidations. According to a recent PRNewswire release, three new board members were added, which may impact the company's strategic direction.

1.c. Company Highlights

Last Price	60.67
Change Percentage	0.46%
Open	60.75
Previous Close	60.39
Market Cap ( Millions)	2514
Volume	1536709
Year High	68.66
Year Low	36.47
M A 50	63.23
M A 200	53.09

FCF Yield	-1.37%
Dividend Yield	0.00%
ROE	-24.48%
Debt / Equity	26.14%
Net Debt / EBIDTA	0.00%
Price To Book	1.28
Price Earnings Ratio	-5.3
Price To FCF	-72.99
Price To sales	6.7
EV / EBITDA	0

2. Transcript Summary

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3. NewsRoom

Independent Bank Corp. $INDB Stock Holdings Lowered by Cwm LLC

Oct -24

Source: defenseworld.net

Independent Bank (IBCP) Expected to Announce Earnings on Tuesday

Oct -21

Source: defenseworld.net

Independent Bank Corp. (INDB) Q3 2025 Earnings Call Transcript

Oct -17

Source: seekingalpha.com

Independent Bank Corporation Expresses Deepest Sympathy on the Passing of Past Chairman of the Board of Directors Michael M. Magee, Jr.

Aug -15

Source: globenewswire.com

SouthState Closes Merger with Independent Financial

Jan -02

Source: prnewswire.com

Acadia Pharmaceuticals Set to Join S&P SmallCap 600

Dec -30

Source: prnewswire.com

Independent Bank Group (IBTX) Reports Q3 Earnings: What Key Metrics Have to Say

Oct -21

Source: zacks.com

Independent Bank Group (IBTX) Misses Q3 Earnings and Revenue Estimates

Oct -21

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.00%)

6. Segments

Banking and Related Activities

Expected Growth: 12.0%

Strong loan growth driven by a 15% increase in commercial loans and 10% in consumer loans, supported by a 12% rise in deposits. Expansion into new markets, improved operating efficiency, and a favorable interest rate environment also contributed to the 12.0% growth in Banking and Related Activities at Independent Bank Group, Inc.

7. Detailed Products

Commercial Banking

Provides financial solutions to businesses, including cash management, lending, and treasury management services.

Consumer Banking

Offers personal banking services, including checking and savings accounts, credit cards, and personal loans.

Mortgage Banking

Provides mortgage lending services, including residential and commercial mortgage loans.

Wealth Management

Offers investment and wealth management services, including financial planning, investment management, and trust services.

Treasury Management

Provides cash management and treasury services, including account management, payment processing, and fraud prevention.

Insurance Services

Offers insurance products, including life insurance, disability insurance, and long-term care insurance.

8. Independent Bank Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Independent Bank Group, Inc. operates in a highly competitive industry, and customers have various alternatives to choose from. However, the bank's strong brand reputation and customer loyalty mitigate the threat of substitutes.

Bargaining Power Of Customers

Independent Bank Group, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the bank's strong relationships with its customers and personalized services further reduce the bargaining power of customers.

Bargaining Power Of Suppliers

Independent Bank Group, Inc. has a diversified supplier base, which reduces the bargaining power of individual suppliers. The bank's strong financial position and long-term relationships with suppliers also mitigate the bargaining power of suppliers.

Threat Of New Entrants

The banking industry has high barriers to entry, including regulatory hurdles and significant capital requirements. Independent Bank Group, Inc.'s strong brand reputation and established customer base also make it difficult for new entrants to gain traction.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players competing for market share. Independent Bank Group, Inc. faces intense competition from larger banks and fintech companies, which increases the intensity of rivalry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	22.82%
Debt Cost	10.11%
Equity Weight	77.18%
Equity Cost	10.74%
WACC	10.60%
Leverage	29.56%

11. Quality Control: Independent Bank Group, Inc. passed 3 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Auburn National Bancorporation

A-Score: 6.5/10

Value: 7.3

Growth: 3.8

Quality: 6.8

Yield: 8.0

Momentum: 8.5

Volatility: 4.7

1-Year Total Return ->

Provident Financial Holdings

A-Score: 6.3/10

Value: 5.3

Growth: 4.3

Quality: 4.3

Yield: 7.0

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

Seacoast Banking

A-Score: 5.6/10

Value: 4.3

Growth: 5.4

Quality: 6.1

Yield: 4.0

Momentum: 7.0

Volatility: 7.0

1-Year Total Return ->

Bank of Marin

A-Score: 5.6/10

Value: 4.5

Growth: 1.9

Quality: 6.0

Yield: 8.0

Momentum: 7.0

Volatility: 6.3

1-Year Total Return ->

Heartland Financial USA

A-Score: 4.8/10

Value: 4.1

Growth: 2.2

Quality: 7.8

Yield: 3.0

Momentum: 6.0

Volatility: 5.7

1-Year Total Return ->

Independent Bank Group

A-Score: 4.4/10

Value: 3.6

Growth: 2.8

Quality: 5.1

Yield: 4.0

Momentum: 5.0

Volatility: 5.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

11.41%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

10.60%

Independent Bank Group, Inc. - US45384B1061

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on IBTX

1.c. Company Highlights

Medium Volatility

Average Quality

Fairly Valued

Earnings Beats

Revenues Beats

Average Growth

Stable Momentum

Earnings Miss

Revenues Miss

Expensive

Lower Growth

Strong Momentum

Lower Quality

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.00%)

6. Segments

Banking and Related Activities

Expected Growth: 12.0%

7. Detailed Products

Commercial Banking

Consumer Banking

Mortgage Banking

Wealth Management

Treasury Management

Insurance Services

8. Independent Bank Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Independent Bank Group, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

60.67$

Current Price

60.67$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA