Heartland Financial USA, Inc. (NASDAQ:HTLF) Q4 2019 Earnings Conference Call - Final Transcript

Jan 27, 2020 • 05:00 pm ET


Heartland Financial USA, Inc. (NASDAQ:HTLF) Q4 2019 Earnings Conference Call - Final Transcript


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Greetings, and welcome to the Heartland Financial USA, Inc. Fourth Quarter 2019 Conference Call. This afternoon, Heartland distributed its fourth quarter press release and hopefully, you've had a chance to review the results. If there is anyone on this call who did not receive a copy, you may access it at Heartland's website at htlf.com. With us today from management are Lynn Fuller, Executive Operating Chairman; Bruce Lee, President and CEO; and Bryan McKeag, Executive Vice President and Chief Financial Officer.

Management will provide a brief summary of the quarter and then we will open the call to your questions. Before we begin the presentation, I would like to remind everyone that some of the information management will be for providing today falls under the guidelines of forward-looking statements as defined by the Securities and Exchange Commission. As part of these guidelines, I must point out that any statements made during this presentation 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 from time-to-time in the Company's 10-K and 10-Q filings, which may be obtained on the Company's website or the SEC's website.

[Operator Instructions] At this time, I will now turn the call over to Mr. Lynn Fuller at Heartland. Please go ahead, sir.

Lynn B. Fuller

Thank you, Jimmy. And good afternoon everyone. Welcome to our fourth quarter 2019 earnings conference call. We appreciate everyone joining us today as we discuss the Company's performance for the fourth quarter of 2019 and for the year. In the next few minutes, I'll touch on some of the year's highlights and then turn the call over to Heartland's President and CEO, Bruce Lee, who will go into more detail on our performance. Then Bryan McKeag, our EVP and CFO, will provide additional color on Heartland's results. Also joining us today on the call is Drew Townsend, our EVP and Chief Credit Officer.

Well, I'm very pleased to report that we had another record year and finished the year with a strong fourth quarter. I will be sharing with you a number of significant percentage increases in many of our financial performance metrics. So with that, fourth quarter net income available to common shareholders was $37.9 million or a $1.03 per diluted common share. And for the full year of 2019, net income available to common shareholders was $149.1 million, an increase of $32.2 million. That's 28% over 2018. And earnings per diluted common share was $4.14, an increase of 18% over 2018.

Heartland's strong performance was supported by our net interest margin, which on a fully tax equivalent basis for the quarter and year were 3.90% and 4.04% respectively. Return on average assets for the quarter and the year were 1.17% and 1.24% respectively. Return on average common equity for the quarter and the year were 9.56% and 10.12% respectively. And return on average tangible common equity for the quarter and year were 14.65%