Q4 2019 Earnings Call
Before we begin I would like to remind everyone that some of the information management will be providing today falls under the guidelines of forward-looking statements as defined by the Securities and Exchange Commission part of these guidelines any statements made during this call concerning the company's hopes beliefs expectations and predictions of the future are forward-looking statements and actual results could differ materially from those projected additional information on these factors is included in the company's SEC filings, which are available on the company's website additionally management May refer a non-GAAP measures which are intended to supplement but not substitute for the most directly comparable gaap measures the press release available on the website contains the financial and other quantitative information to be discussed today as well as the reconciliation of the gaap to non-GAAP measures as a reminder. This conference is being recorded and will be available for replay through February 6th.
2020
This afternoon approximately approximately one hour after the completion of this call. It will also be accessible on the company's website at this time. I will now turn the call over to mister Holdings.
Thank you operator. Welcome ladies and gentlemen, thank you for taking time to join us today. I will start with a brief overview of some of the financial highlights for our fourth-quarter and full-year. God will follow with some additional details on our financial results.
We are very pleased with our financial performance in the fourth quarter and for the year highlighted by record net income and a solid increase in adjusted earnings per share.
For the year our adjusted net income increased 26% and we grew our tangible book value per share by 17%
after adjusting for one-time items are revenues grew by 60% driven by record swap the income and higher net interest income while expenses only increased by 24% demonstrating strong operating Leverage.
We capitalized on the ongoing economic strength and healthy business conditions in our footprint to grow loans and deposits organically both by over 10% for the year. We continue to gain market share across our Charters, which is a reflection of the value that our clients placed on our commitment to relationship based Community banking.
Additionally, we successfully expanded our net interest margin during the second half of the year as our initiatives in this area gained traction. Our credit quality remains excellent with net charge-offs near zero and non-performing assets declining again in 2019.
Strategically it was an important year for us as well. We exited the Rockford Illinois market with the sale of our B&T as we weren't able to reach acceptable levels of scale in that market and consequently a satisfactory level of profitability.
Pleaded the transaction on November 30th and recorded a 12.3 million dollar gain on the sale as well as some significant one-time items that Todd will cover in his remark.
The best thing of our B&T enables us to redeploy Capital in our other more profitable markets and to help Drive continued organic growth and acquisitive growth transaction also bolstered our Capital levels, and we expect to meaningfully improve a number of our key performance metrics going forward as a result of the sale.
Given that it's your end. I would also like to take a moment to reflect upon the progress. We've made over the last five years.
As we have often stated one of our key strategic objectives is to be an acquirer of choice amended consolidation occurring in our industry. Our Focus has been on Market with six characteristics as our existing msa's those exhibiting stable economic and demographic Trends and we're relationship-based Community banking is valued by clients.
over the last
Five years we successfully completed three separate Bank Acquisitions all consistent with our stated criteria. And we more than doubled our Branch Network to 25 locations dead.
We also nearly doubled our total assets translating to a compounded annual growth rate of just over 14%
Our diluted EPS grew at a rate of 16% per year are improved by over 80% in our efficiency ratio improved by over six hundred basis points.
These significant advances all demonstrate a positive operating leverage inherent in our business model and are consistent execution.
As always I want to acknowledge the entire QPR. Holy family will work diligently to achieve the strong results for our shareholders clients and the communities in which we operate attracting a training top talent has always been a high priority for us and it's vital to our long-term success.
While our accomplishments in the Legacy that we created over the last twenty six years is all very gratifying. We remain keenly focused on the future. I am very excited to lead our team into the next decade and to build upon our tradition of success with the overriding goal of driving attractive long-term return for our shareholders.
No turning to some of the highlights of our fourth quarter Financial results. We finished the Year Strong building on the momentum that we created throughout the year during the quarter off generated solid loan growth, which was more than funded by our growth in core deposits.
Frank and ballpark or commercial lending business and our specialty Finance group drove our loan growth.
We ended the year with a strong Pipeline and our markets remain healthy giving us confidence that we can continue to achieve organic won't roll for the full year 2020 off of between 8% and 10% and we expect to fund our loan growth.