Independent Bank Group, Inc. (NASDAQ:IBTX) Q4 2019 Earnings Conference Call - Final Transcript

Jan 28, 2020 • 08:30 am ET

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Independent Bank Group, Inc. (NASDAQ:IBTX) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings. Welcome to Independent Bank Group Fourth Quarter 2019 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions]

I will now turn the conference over to your host, Paul Langdale, Vice President, Investor Relations. Thank you. You may begin.

Executive
Paul Langdale

Good morning, everyone. I'm 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 fourth quarter 2019 earnings call. We appreciate you joining us. The related earnings press release and a 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. Those statements are subject to risks and uncertainties that could cause actual and expected results to differ. We intend such statements to be covered by Safe Harbor provisions for forward-looking statements. Please see Page 5 of the text in the release or Page 2 of the slide presentation for our Safe Harbor statement. All comments made during today's call are subject to that statement.

Please note that if we give guidance about future results that guidance will only be a statement of management's beliefs at the time the statement is made, and we do not publicly update guidance. In this call, we will discuss a number of financial measures considered to be non-GAAP under the SEC's rules. Reconciliations of these financial measures to the most directly comparable GAAP financial measures are included in our release.

I'm joined this morning by David Brooks, our Chairman, CEO and President; Dan Brooks our Vice Chairman and Chief Risk Officer; and Michelle Hickox, Executive Vice President and CFO. At the end of their remarks, David will open the call to questions.

With that, I will turn it over to David.

Executive
David R. Brooks

Thank you, Paul. Good morning, everyone and thank you for joining us today. As always, I will touch on some highlights for the quarter, Michelle will then cover the operating results and Dan is here to cover the loan portfolio. I will be back at the end with closing remarks and to open it up for questions. 2019 was another solid year of continued growth and financial performance for Independent Bank Group. We had a strong finish to the year with fourth quarter adjusted earnings per share of $1.32, adjusted return on average assets of 1.49% and adjusted return on tangible equity of 18.32%.

Throughout 2019 we executed on our strategy of disciplined healthy growth. We organically grew our deposits by 10.4% for the year, which is reflective of our commitment to maintain a granular funding base and continue to minimize the pressure on our net interest margin.Organic loan growth was 4.8% for 2019, which was impacted by elevated payoffs in the fourth quarter as investors sold CRE assets to take advantage of low cap rates.

Despite this headwind, the amount of total new loans funded in the fourth quarter was 11.7%