IBTX - Earnings call transcript Q1 2021 | Independent Bank Group, Inc.

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Paul Langdale

Good morning, everyone. I am Paul Langdale, Senior Vice President and Director of Corporate Development for Independent Bank Group and I would like to welcome you to the Independent Bank Group First Quarter 2021 Earnings Call. We appreciate you joining us. The related earnings press release and the slide presentation can be accessed on our website at ibtx.com. I would like to remind you that remarks made today may include forward-looking statements. to results uncertainties to subject actual could are expected and differ. statements risks that and cause Those We intend such Harbor provisions statements to be forward-looking covered statements. for by Safe page text Please Safe our the of page statement. the the see release presentation five Harbor or two for of slide in made comments call to that are All subject today's statement. during no statement update is if at the beliefs we that future made note management's we guidance about publicly results, the of statement obligation that Please give guidance guidance. and assume is to a time call, rules. this a of In will we number non-GAAP financial discuss be to under measures considered the SEC's Reconciliations the release. financial GAAP financial of our measures these measures most directly in to are included comparable this Dan Hickox and joined CEO Michelle by Vice Chairman, Vice Risk our and Brooks, and President Officer; I'm Executive President; CFO. David Chairman morning Brooks, our and Chief their of David remarks, the will questions. call end the At to open over that, David. to turn will With I it

David Brooks

call. Paul. everyone, on Thanks, morning, Good today's thank you us joining for and

report the the We and to Colorado. are start work to members Texas team hard a our continued pleased across solid reflects that year of

metrics X quarter, organic annualized quarter. our double-digit of strong, charge-offs per ratios. earnings $X.XX company strong increases credit adjusted just of for our reported recorded capital Furthermore, quality first posted with already growth share, to basis and deposit point the additional the remained net For

we in customers the strength the regular through Year-to-date, dividend an our originated stretches increase Directors quarterly of earnings our share. of authorized and our has balance $X.XX additional Given loans the an continued in to have PPP of sheet, pandemic. our $XXX Board to help million final per

first pandemic by relative continued growth loan quarter. to we As impacted be the payoffs the during anticipated,

loan of see encouraging loan However, we are demand. signs growth accelerating and to beginning

operating loan growth for overview, over economic year. anticipate quarter. returning the recovery that growth the results With a detail pace in in I'll normalized quickens, more more the loan call to turn we As back Michelle second for of the quarter the the half with positive on of net the the

Michelle Hickox

David. data Good everyone. note morning, that selected of Please the financial slide for you, six includes Thank quarter. the presentation

margins was loan per Core which yields quarter. and NIM, had $XX totaled environment despite purchase expense the is strong and yields. million and it or payroll QX. for quarter. loan diluted Noninterest slight and of by the The compared Payroll from $XX.X to the amortization $X.X Slide funding sale was from impacted shows balances $X.XX $X.XX were XX and linked with from an due basis down basis accounting rising Our quarter. always points to the quarter of income noninterest $XXX.X income for or the quarter points share, the quarter. and quarter loan impacting basis asset quarter, offset noninterest the the million or vesting. Salaries for all from mortgage last linked quarter, billion X were first XX growth day taxes unusual year Total the our million by and million share year benefits to increased a quarter, warehouse linked the $X.XX per liquidity down organic quarter. first was XX% first was count. in of basis the the million the Compression compensation adjusted remainder rate mortgage with due net and income related Overall, first to yields lower the in points production end, in $XX.X QX, to excluding deferred $XX.X to for million, annualized linked raises from of XXXX, The primarily for Total X.XX% first were million gain per quarter, Net growth XX.X% slight increase was QX Year-over-year, interest investments decreased taxes by were X.XX% remained in deposit up were up $XXX,XXX production and compared the quarter due linked RSA growth, driven The from bonuses $XX.X and down million the quarter new or quarter. decrease last diluted accretion. million points adjusted by other mortgage linked first million investment for the quarter. down in million, with compared quarter. only and $XX.X expense linked costs from share well a on the were margin team quarter. was from XX accretion, the compared by X grants reduction accelerated the asset performance loans. QX reduction quarter, $XX.X reduction for and X.XX% related positively a $X.X $XXX.X year million, first for for about last costs, and the diluted impacted as to recruiter earning volumes million in deposits relative income were deposit about origination mix by higher quarter bonuses linked relative slightly signing PPP increased interest to $XXX.X in cost. $XX.X to net linked of as and as $XXX we impacted in $XXX,XXX income driven linked items

million common to expense to grow numbers. by the in about moved total consolidated commitments. off-balance reduce January one first allowance unfunded about resulted deposits and also XX.XX% which $XX XX. million ratios of We basis day for XX adopted and capital a XXXX increasing XX.XX% concludes company's these to in losses In quarter, to was both included equity earnings That X, company by for the to Capital capital had Tier after-tax. comments are recorded $XX ratio basis points quarter. increasing The today. million $XX the to to for million On $XXX loans previously continue that with points been XX presented on the adjustment loans slide a my X in are acquired adjustment CECL, retained ratio the we reciprocal not that the credit includes had discounting. related the This ratios sheet at capital

to to turn I loan discuss it the So Dan over portfolio. will

Dan Brooks

Michelle. at Overall, loans end held warehouse Thanks, quarter billion for mortgage XX, loans were investment $XX.X billion excluding XXXX. to at $XX.X purchase compared December

CECL a assets proportion average to our to with balances loans March to low The of quality XX, loans warehouse the mortgage of billion overall March quarter the reflecting the dislocation at from investment total Overall, loans warehouse X.XX% the sheet. for the PPP during excluded deteriorated quarter. pandemic. the an X.XX% our linked loans. prior of $XXX loan and At non-performing morning. addition $XX purchased $X.X warehouse charge-offs year-over-year metrics quarter. $XXX.X remained which this to balance economic at single quarter, remained held or at allowance decreased loans for Excluding up of related investment as $XXX.X caused first of flat primarily adoption. are $XXX XXXX by credit in million, million loans assets million to in Average losses appropriate in March all the million, $XXX.X million have comments the slightly increase loans continue million Classified assets XXXX. primarily by of the result purchase totaled adoption mortgage credit maintain our total PPP to XX, non-performing for in for portfolio CECL in credit for strategy million a is XX, resulted These the due CECL the just linked basis versus XXXX of I was point excluding annualized Net the or remain at that were $XX quarter held strong

I'll So David. with to turn it that over back

David Brooks

Dan. Thanks,

a the For have scalable we our and expectations. year, meets infrastructure while being customer our evolving and focused on platform there that communities, strengthening past for customers ensuring

see month. We which continue of these account platform, in like the our investments and efficiencies this to online internal in earlier opening of launched terms both digital offerings operational new results

us Digital Officer to this who joined a We month. also attract organization, including the talent continue new new to earlier Chief

ahead, in footprint. economic recovery on this of opportunities are as growth to growth our country significant and the in we four Looking accelerates across strongest the the company operates well-positioned markets capitalize

questions. we M&A company and and bank value today. appears shareholders. shaping pursue our for that be financially to well-structured end, for themselves. to year join open To expect our active committed line to remain you Thank to Operator? XXXX the long-term attractive strategic, deals time for opportunities taking always, to an I create sustainable We'll up now As present to be as us the

Operator

Please The this [Operator Thank first we you. session. be Securities. go question-and-answer At Young question conducting from a will Instructions] is from ahead. Michael time, Truist

Michael Young

morning. good Hi.

David Brooks

morning Mike. good Hey,

Michael Young

on the start wanted for taking the growth question. Thanks to just I loan outlook.

rebound been year, in it second pretty loan that communications half think Are keep optimistic be pipeline I whether place? or of a trends loan in there? the growth still building you the You've customer confidence about that seeing those and

David Brooks

the we surprised are fundings pipeline year. weren't positive we've And end the in the Previously already quarter. about the Michael, resulted accelerating confident loan first were talking that's the for off were in of the but growth toward April in a little that we quarter. been for Yes. about. picked -- We cash the in that, were up

before as April far. been So is our pipeline fundings very been it's strong the in since so have pandemic. the net And as good

have go-forward positive evolving in on normal X% So a the growth to have then to and more in for a we of we'll the year here second back believe that quarter the X% half to of reason us basis. second range

playing So we're as ground. it's that about the feeling out on better now

Michael Young

just there end. And inorganic your on you would guess comments Okay. I mentioned the the side, my follow-up -- at be

think hot and market and has and hot been I cold. cold the

optimism, updated we've like to a announced sounds get would few And maybe maybe size recently? there a a seen curious just more thoughts conversations as more now. it be I MOEs for more So had little especially little being related

David Brooks

Sure.

Texas the the activity, well. as are rather in or up conversations think certainly I the questions picking

there We our here have about do sweet spot And themselves. think very still a post-pandemic part is good economy opportunities a in feel affecting are thinking is allude companies. Michael think activity there opportunity what landing this a markets to confidence how nationally more and beginning as some I to positive major what I of downstream I their companies partner going for and I companies is of the acquisitions and better merger are. And then public their on of where more think seen here acquisition in they're to and people good, then is as for what's the you conversations lot as some good to downstream get -- people Michael. high-quality in get bigger that on deals some very Texas be going think of that's

Obviously see. We'll more I'm activity haven't the we I so And encouraged quarter. was than Texas. seen in much first in

So to it in country. sooner how is comes there's a surprised that about. of didn't we'll lot And My Texas across than I'll get later. the understanding see pipeline if activity the be

Michael Young

Thanks. Okay.

David Brooks

Mike. Thanks Okay.

Operator

question next Brad from ahead. Sandler. from is The Please Piper Milsaps go

Brad Milsaps

Hi, good morning.

David Brooks

Good Brad. Hey, morning

Brad Milsaps

wanted your guidance, Michelle I number I flat and maybe linked quarter but to pluses were like they with think with the -- of there expenses. a and line quarter. minuses sounding start in within Pretty were

how year you're all the through run about discussed? curious thinking Just expense rate that account taking move we those you items into as

Michelle Hickox

Yeah.

You're Brad. I the a in line in was earlier. salaries and my noise to comments lot benefits referred exactly of specifically right There that

was it, we that I offset nonrecurring around costs expense -- that would million the when had to first $X deferred but quarter had at related call of look by think after PPP. I and that I we probably

$XXX,XXX you the noninterest probably is get as of higher continue expense one things all to $X paid those than off. would recorded it's we probably related of we QX have through that been million PPP we if the expense pull have around And loans portal a we that reported. So that, about out what will

what little than a made expected. I that's rate run So the bit higher

the if I rate all $XX the is So that what the you rest and up $XX run will add year. I that of million between million expect be think would

Brad Milsaps

then, I fees you if question, helpful. program? was of of year to have PPP I that follow-up impact that. recognize And as That's are And the the of amount remainder the the what quarter? in the I then, remaining fees for missed the curious apologize, or my Great. in

Michelle Hickox

Yes.

million -- related think was was $X.X But PPP in in that $X.X to of first about paid quarter million and about that that were the off. loans recognized QX. we million So, fees I to there of $X.X compares

and round We million to second the have the $XX about remaining round first from then now recognize.

now, into -- that 'XX. of expect that right expect And recognize will year. carry over we'll we be there about will those probably We XX% this some then

Brad Milsaps

back hop I’ll guys. in you, Thank Great. queue.

David Brooks

Brad. Thanks

Michelle Hickox

Brad. Thanks

Operator

Stephens. Please from The Matt ahead. from next go is question Olney

Matt Olney

Hi, thanks, good morning guys.

David Brooks

Hey good morning, Matt.

Matt Olney

the that this you securities some liquidity really first love bit. about the some then what in additional I to see liquidity, did hear nice extend into quarter. and the the that little bought and growth around like from could more portfolio And of deposit securities saw you quarter duration deposit growth saw portfolio. investment I strategy growth we looks here? deployed Would a in the Thanks.

Michelle Hickox

has Liquidity to think my least guided putting at into Matt. portfolio, start liquidity going this we some Yes. been And were challenge we I biggest been of which we have year, doing. that the investment that

really haven't We pretty portfolio tend That it though. keep very our risk. changed We short. strategy there to low is

to now, the coming, it so expectation So of the investing $XXX even our $X.X about we're that as by more there. middle we'll what putting Right you've is yield million, seen though at about grow we're the -- been is portfolio year. billion has our overall of in

as payoff, our keeps has to PPP liquidity the the continued Now have coming. we liquidity increase. And

So we more, that decide does continue. the increase loan we're to if might bit seeing a not growth

So, as on that low-risk we'll sheet. portfolio. been We've backs high we primarily manage agencies mortgage very investing and see a quality our again in balance opportunities

Matt Olney

come it like could what Michelle. And far guess a the then, in the have about in from a we warehouse, seems as that more mortgage for love the I secondly, to you see market. would the shifting like Okay. back Thanks Do are to industry the refi incrementally. split as volumes your portfolio and expected in pricing customers is the hear to is mix? as your market for purchase I half year, on slow of And seems portfolio it

have you been guys customers. think on I focused smaller more

the year? Thanks. of So, your for would on balance love views to and yields hear the volumes also

David Brooks

Yes.

So, in the know I an we if split. don't warehouse have exact

certainly purchase. refi said, same shifting seeing you Matt to the trend of As we're the

they homes will builders just XX can, every One lasting of the of selling the there's undersupply and as in is, sale. the for you an on building house Texas challenges they market And The homes going are as are if fast hours. build.

talking our shift is both quarter on average little for supply to -- warehouse refi there sale enough could with the the mortgage our saw at affect that's purchase, first quarter a And the That around so in than pricing. We side? higher our expected, as and will concern of and warehouse, little was the The mortgage the decline $X.X folks, continues a retail demand that's flat mortgage actually in course, a said, balance holding be we'd bit from portfolio. in the on of in supply mortgage purchase gain billion. with is the quarter first pretty this fourth retail

Michelle Hickox

$X.X billion.

David Brooks

$X.X billion.

$XXX little number then, quarter, safe expecting looks second from April down we a I it little that warehouse maybe say estimate. mortgage billion be good have something in their could But average think in million average good. that. down than And side, think, come a now, a the lower we'd their to so volumes guess and for the been better would good $XXX,XXX to a picking a retail $X.X far the we're pipeline were if very be good to I mortgage right

over our time I side, a clients. little actually safe for I'd So, -- to would saw on that. mid-tier the probably this think upscale warehouse tier thought Brad for larger call from what has QX more in retail a it And flat quarter moved QX, mortgage and be mortgage on more bit we

our smaller So facing. the more so still have some than probably banks average, customers some But probably headwind do face that same we'll other of peers. on there we some are

Matt Olney

Okay. for Thanks comment.

David Brooks

Matt. thanks Yes,

Operator

Brett Please of Rabatin question go ahead. is Hovde next from Group. The

Brett Rabatin

Michelle. morning, good Hey

Michelle Hickox

Brett. morning, Good

Brett Rabatin

and yields first getting in funding The know bit are rate the Wanted costs just Michelle, margin talk then do would on the hoping bit. PPP, and X.XX%. it you're a where any liquidity keep just margin little yield. margin Just average a closer it? assume margin the curious improve the loan bottom, you is, where given was to commentary. I any existing like just for the can a feel relative but that quarter it's it's I'm be commentary just you to tougher probably originating to or with production And about would helpful. new to tough you

David Brooks

Let think, commercial the between late in Xs, And come even the a We're average XX/XX we loan yields yields. we're than now in the average. first now booked CRE in, me kind a the CRE -- growth yields C&I C&I but for I about are portfolio seeing and maybe. on The X.XX% Michelle pretty first talk portfolio. upper and of quarter. on about right sounded Brett what seeing right split our better our the on yields little

So Fed, about be growth I'll mortgage as very year. here XX pretty for for second yields to to basis of I It's year. positive And course seeing talk mentioned back expect around in we so steady And as that But begun continue go the the X.XX%. we're continue that book quarter. we'd Michelle if of positive to the try to during at loan then we're far accelerate had NIM. the but we've oncoming expect the increase we've we that homes that the points the other net to early let liquidity And forward. to to than find

But home will hopefully So that for some the well. be Michelle NIM? liquidity a of on as

Michelle Hickox

Yes.

net are focused the X on we've I to at on on our think income margin David focused But trying point is at look replace margin. basis you could at much liquidity David to that like point of just ex-accretion. outlook holding my we're not interest how if amount as margin is this the this just At X X would because what and really at that books of impacted points core basis funds it's to looks opportunistic said points assets and we the Fed. accurate. mentioned grow because be at so it We're trying compress putting it had

looking income really So on just versus margin. to to net be interest grow so much able focus

Brett Rabatin

helpful. quality thing to CECL around will to give you're negative a just Obviously quarter guess provision first curious bank light I That's needs seems on any it just you given I pretty outlook asset other the going from needs kind like strong the your And here? pretty trends. adjustment like light forward. the be in but provisioning and was provisioning Okay. be looks CECL about your just me your was then it now of Could

Dan Brooks

Hey that Brett, this is Dan. I'll take one.

While data forecast the we think is our continues a impact banks classes the for asset see the most by the us of banks few certainly Moody's that ultimately point to used be that bank it's take going and to in the conditions of for will economic quarters still into. different loan improvements to and all what to I other

depending portfolio our reserves As that the overall releases reserve additional some you and needed, feel growth reserves an about could and the deserving some quarters. primarily on occur very are additional listed already we loan we believe loans, of and see against on needed have comment, on could any credits specific them. good if think I the list are reserves And in watch future

David Brooks

But how the any on, any certainly think, or that, a to working Michelle it's foreseeable see taking to this likelihood a We credits unless negative loan seen additional of of much we point any for I growth whatever. we're the you've and at loss of flat anything or Moody's any expect don't ahead. differently us drive our additional quarters and provision. take question we the additional see would just provision provisions And between Brett whether for loan

Michelle Hickox

not we what now, right it. would our on portfolio know Based expect Right. about I

Brett Rabatin

Thanks Okay. Thanks much. the color. for so

David Brooks

Brett. Thanks,

Michelle Hickox

Thanks, Brett.

Operator

Gailey from KBW. is question ahead. next go Brady Please The from

Brady Gailey

you. Good Hey. morning Thank guys.

David Brooks

Hey morning. Brady. Good

Brady Gailey

longer big I relates as think next about or at it's appropriate kind mention appropriate But of average So that mortgage size. think it is, an have not to year. of get Dan something what I X% slowdown, to warehouse could about, heard guys Like you of that's or term, how where you it size? this keeping loans I the as you you do allow once about, now. loans would overtime? I'm warehouse concerned hits -- think the as look an But quarter XX% you

David Brooks

time. Brady panic the us flexible and that, range we're at think that balance warehouse tried to think guide there's we any is in send and is in for is, mortgage proportion to if portfolio about loan a in XX% point we just a belief for assets And right how went sheet in, core our is terms X% I you of to as capital. certainly bulge we've But the range. good our a given market. of thought be a think XX% the -- long great And it to earning to general about that business that. in, to But we and continue quarter, wouldn't your somewhere as we in the XX% your

So set investment. we've $XX.X it billion $XX billion out, at for held loans of a,

we Somewhere Of with be would and us place were bank a in said a maybe have billion a billion or then, make could quarter. we $X.X is X% is balance might be sheet it billion but Brady It to an could course, any XX% could there. around acquisition. $XX if earlier, differently? good billion. we continue $X $X.X And somewhere to $XXX or to given $XX the And of million to in think your quarter $X.X to question again, billion we lead around as in be million any $X.X -- of that It $XXX given be. billion loans to grow billion target I

said you mortgage in a $X to we'd fine expect is $X.X we're continue that. business years grow, a out we grow company billion or and we be both hey we organically as a $XX balance with three to M&A. And warehouse, our to with it sheet billion and strategic million two So if have

Brady Gailey

how repurchases. that two -- is north And stock times right, update do Maybe update standard. All this of on I Yeah. dividend was know just did from on your it to But appears great about now not quarter. any share share an you buyback the here? you're any see thinking increase the

David Brooks

continue expect two the our that our that's to Board increased off target. believe book -- primary for for, look increasing dividend. still that as strong that to assuming meantime, times strategic better that quarters And north ultimately, continue about in look our And at the we dividend everything We well the north know to you improvement we'll -- In excess Yeah. I acquisitions capital trends of stock capital profitability opportunity. we're the deploy ahead, would and continuing we capital. mentioned is that today trends. trading then, that strong in a strategic

Brady Gailey

which Yeah. despite we a quiet to And we on in seeing more pick-ups out is lot activity it the M&A deal. I'm see building or about saw it's seen is that's And do want in follow-up wondering, actually cadence, too. pretty Texas. that But Texas? of outside seller I big of just M&A just a been Bancorp's expectation off surprised areas activity to haven't a you more we're other issue, coming But country. of was and wave a this think

David Brooks

just pandemic trying done don't and coming get of that be maybe quickly. to looking everybody people a there's lot urgency, Brady expected I of around and announced a sense out would something that think of

thinking months, hey, raising, the economy heading recovery into strong rising a infrastructure it future are going -- and think that, rates and People here, The be about a could things maybe, stimulus XX concerns next I are them. affects I there's of drive rate that think sense to that that months. higher. spending we're environment in we're and over that, a doing the how the XX appears with amount strong

be for Some would really event. banks banks -- believe that that would positive some be a

to of year or and for Brady, NIM two, And some get of before, thought things same And find my -- shareholders. drives are can in public Gosh, a earnings get can I the one better talked as downstream capital. they thing, some to going there if are if in other companies they one so, to And my -- facing, price maybe I Texas, here up smaller increasing find we've that see that rates maybe the I looking of is my can that I till a that we're the of really purchase drives options wait which banks. things strategic if go and about up around see believe

think, ratios could I that if themselves, and that's public capital And better their companies earnings smaller that price sitting absolutely that acquisition And command for into some sheet like deploy get of the, a their their correct. are capital on think smaller theoretically that I then feel can balance very up nice a they they shareholders.

strategic a then a I well the I all it's be have it's practically, just going good window the merger to this find partner, difficult increased we're execute going think to that see to and to where those opportunity activity. to in good earnings for XX, think right in next XX months

going in on three more flood I gate -- of that there's encouraged, here think Texas. as to think come those Brady, be in say next said, in the you'll I'll was still see will I'm activity I a lot don't open that. still and -- not So, some January but quarters of some I But, there it factors a but it's or together I I think not still about than two

Brady Gailey

guys of helpful. seeing upbeat And Texas. finally in We've that other your that business there Okay. is the then me, That's lot for kind that about banks wanted a from local Texas vibe reported just have heard to the of I you and ask is that Is well. to have markets are doing local economy back vibe the on saying, the really well? clearly pretty as Texas been at

David Brooks

Absolutely.

-- but business. here, think in strong. The here to little continued to we are job getting maybe back numbers side particular, months. hospitality There's is in I the of be very they'll here, hesitation restaurant, in are rolling think next growth, generally few bit the going little the a a on Texas, that economic still get people slower some

And so, no very positive.

teams seems and production pipeline a some attitude the well. in mentioned quarter very C&I beginning far as strong playing customers' on their to retail and I Our to be are so out And tailwind get big new increasing second funding good. as with earlier, our and that's,

about announcements we the across the about yes, job feel good relocation see loan all under verged loan So, good to growth, our and that continuing growth feel which economy, footprint.

that And so, as the that little maybe be back Denver, thing. extremely we slower and we activity of seen to good. feel well, get doing in full summer. we've level back stride to a been has in Texas, expect but Denver by well they're same to

Brady Gailey

Great. color, Thanks the for guys.

David Brooks

Thanks, Brady.

Operator

James. question from [Operator Raymond Please Michael from Rose The is ahead. next Instructions] go

Michael Rose

asked wanted of Hey. to Good morning, been outlook. the to everyone. loan I have but answered, questions go growth kind and Most of back my

you I of about, mid-single COVID ex-warehouse, think, quarter. talk were improving. drove that the get looks some know in is It expenses maybe I the year. of the in you this an backdrop come you Obviously, like efforts hiring that this year-end. certainly you by back that Denver gives confidence later impacted little increase quarter. book to some will energy what made? as be And that can range on to forward. about there's kind just David balances of headwinds we in you down move Can Clearly, portfolios going the this previously digits Loan a again bit ex-PPP. some talked

you the contribution growth where as the newer from what give Thanks. of hires you some the some can would us color forward? be as and expect Just might you maybe to move

David Brooks

in to to other officers, build market as I market And -- No, areas of looking we real well. including other been question. a we've team in good getting opportunities see see on question. and bank at added people Good where opportunity strategically morning, to continuing opportunities good think hire really turnover a We've estate Michael, out. particularly bit chance us and middle the an to also of that are we've talented well a the continuing in as relationship replace we just other little seen normal where

here the bloom the So in that well say contribution traction year, related now. the to for some Texas by And up as team retail mentioned year, market combination they're it's earlier own in new that, is new a that borrowers' picking of and that their to there a well. continuing result to the we're be get as we a improving of The significant digits to, the term. single long end the improving together in all would Houston. good the upper of the and these expectations think maybe expenses then kind growth all going, coming going Denver the in we'll more but expecting second towards I shortly. slower adds as new I our be businesses. I and of as the half were Michael X%, of We the in markets, cultivating teams then relationships X% and Austin we're full growth back run getting normal as really year. second to of is and is Dallas-Fort The We think the of middle major the teams economy, mentioned think And hires a of from get half new little retail Worth, rate

first decline quarter of year had year be a we how the expect to significantly the in low single-digit it's of about with the in half single-digit quarter, the mid-upper I which playing we're total half X%, the slight think with X% the then a the we means kind -- for first thought growth about -- then We in out in and second a positive growth of here resulting maybe. a of the year for second

first X% year at X%. low that's single very growth. go our single to December in of in half, this XXst coming -- held loans look get Again, year XXst last confident the December And X% we're that you to the that to should up that we investment for half overall. X%, upper in If second think

Michael Rose

Great. color, Dan. for That's David. one appreciate Maybe it. I great just

getting I might surging. for slide you for recover. borrowers kind time? a that to Because the last some an additional those rates what like there seems pretty matter the this are across in book, hotel that point. deck the hearing was back the need large time people occupancy There chain on on at it in But as Texas coming saying noted again. Thanks. guess article and is You basically was hotel Can are southeast of define more there product that are we're week needed bookings of hotel you strong out more

Daniel Brooks

was owners some suppose back. we in that. hotel to the My outlook that in in Good seeing where I those temporary continue located. don't see quickly question take is Was morning is And that believe surprising all how we long. have are cause you occupancy. And we see improvement it heard recover. it on it how would we You of properties it? is think bounced of is it's better. would what we areas certainly the I have our from about fact in Michael. on I But would are has I say And bet. it really said particular say know it yet. that been depends the time What The customers what certainly

if those sustainable. have impacted. that's an next back airport that seen before, hotels nice they about a to to have a right been property where in They've and you here should struggled hotel particular, talked be bounce get we've have As occupancies,

service in where I covering that large bit So, others probably comfortably little debt be to part, in some recover XXXX, think return. many still their a will will them places and There making languish longer. they're of

not probably far. we've yes lot all the a other see improvement in to we're so to that had guidance than whole new that you glad So, of

Michael Rose

for Great. the I Thanks appreciate all taking my color. questions.

David Brooks

Mike. Thanks

Operator

would comments. to over like This turn concludes back the closing session. question-and-answer the for Brooks to David I call

David Brooks

the across do. go get I and we that of to who Thank care team us build communities, just investments you. Really to X,XXX customers, appreciate I of reiterating taking people everyone markets. work, our doing joining all proud every helping up got close today. and by We've am wanted our day how of

last other the shareholders. board this the team each with and the year grateful just We had to across done teammates all been first-rate and they've job the have I'm done and a great we've challenges great they've work in to a deeply have for

everyone's we're a appreciate I to time continue morning support. Hope everyone Bank of as execute Group this we to going has your have we Independent and in investment And story. the appreciate and time So, great day. Thanks.

Independent Bank (IBTX) 27 Apr 212021 Q1 Earnings call transcript