Heartland Financial USA, Inc. Reports Second Quarter 2015 Results

DUBUQUE, Iowa--()--Heartland Financial USA, Inc. (NASDAQ:HTLF):

Quarterly Highlights

  • Net income available to common stockholders of $15.0 million or $0.72 per diluted common share
  • Return on average tangible common equity of 14.14%
  • Net interest margin of 3.97%
  • Loan growth of $206.1 million or 19% annualized since March 31, 2015
  • Gains on sale of loans held for sale of $14.6 million, a $5.8 million or 66% increase over the second quarter 2014
  • Announced signing of three merger agreements:
    • Community Bancorporation of New Mexico, Inc. on April 16, 2015
    • First Scottsdale Bank, National Association on May 15, 2015
    • Premier Valley Bank based in Fresno, California on May 29, 2015
  • Completed systems conversion of Community Bank & Trust into Wisconsin Bank & Trust on May 15, 2015
       
Quarter Six Months
Ended Ended
June 30, June 30,
2015     2014 2015     2014
Net income (in millions) $ 15.2 $ 10.8 $ 30.9 $ 17.7
Net income available to common stockholders (in millions) 15.0 10.6 30.5 17.3
Diluted earnings per common share 0.72 0.56 1.47 0.92
 
Return on average assets 0.91 % 0.73 % 0.94 % 0.60 %
Return on average common equity 12.26 11.14 12.90 9.32
Return on average tangible common equity 14.14 12.66 14.88 10.65
Net interest margin 3.97 4.04 3.93 3.98

 

 
“Heartland’s second quarter performance was excellent. Net earnings of $15 million exceeded last year’s same quarter by 41 percent. Our results were fueled in part by a solid net interest margin of 3.97 percent, strong loan growth and an exceptional increase in noninterest income.”
 
Lynn B. Fuller, chairman and chief executive officer, Heartland Financial USA, Inc.
 

Heartland Financial USA, Inc. (NASDAQ: HTLF) today reported net income available to common stockholders of $15.0 million, or $0.72 per diluted common share, for the quarter ended June 30, 2015, compared to $10.6 million, or $0.56 per diluted common share, for the second quarter of 2014. Return on average common equity was 12.26% and return on average assets was 0.91% for the second quarter of 2015, compared to 11.14% and 0.73%, respectively, for the same quarter in 2014.

Positively affecting net income for the quarter were increases in net interest income, securities gains and gains on sale of loans held for sale. These improvements were partially offset by increases in the provision for loan and lease losses, salaries and employee benefits and other noninterest expenses. Loan growth for the quarter was $206.1 million or 19% annualized since March 31, 2015.

Commenting on Heartland’s second quarter results, Lynn B. Fuller, Heartland’s chairman and chief executive officer said, “Heartland’s second quarter performance was excellent. Net earnings of $15 million exceeded last year’s same quarter by 41 percent. Our results were fueled in part by a solid net interest margin of 3.97 percent, strong loan growth and an exceptional increase in noninterest income.”

Net income available to common stockholders for the first six months of 2015 was $30.5 million, or $1.47 per diluted common share, compared to $17.3 million, or $0.92 per diluted common share, recorded during the first six months of 2014. Return on average common equity was 12.90% and return on average assets was 0.94% for the first six months of 2015, compared to 9.32% and 0.60%, respectively, for the same period in 2014.

On January 16, 2015, Heartland completed the acquisition of Community Banc-Corp of Sheboygan, Inc., parent company of Community Bank & Trust in Sheboygan, Wisconsin, in an all stock transaction. Simultaneous with the closing, Community Bank & Trust was merged into Heartland's Wisconsin Bank & Trust subsidiary. As of the close date, the transaction included, at fair value, total assets of $525.3 million, total loans of $395.0 million and total deposits of $434.0 million. Systems conversion for this transaction was completed on May 15, 2015.

During the second quarter of 2015, Heartland announced it had entered into three definitive merger agreements. The first is with Community Bancorporation of New Mexico, Inc., parent company of Community Bank in Santa Fe, New Mexico. Under the terms of this agreement, Heartland will acquire Community Bancorporation of New Mexico, Inc. in an all cash transaction valued at approximately $11.3 million. Simultaneous with closing of the transaction, which is expected to occur during the third quarter of 2015,Community Bank will be merged into Heartland’s New Mexico Bank & Trust subsidiary. Community Bank had assets of approximately $183 million at March 31, 2015.

The second is with First Scottsdale Bank, National Association, in Scottsdale, Arizona. Under this agreement, Heartland will acquire First Scottsdale Bank in an all cash transaction valued at approximately $17.7 million, and First Scottsdale Bank will be merged into Heartland’s Arizona Bank & Trust subsidiary. The transaction is expected to close during the third quarter of 2015. First Scottsdale Bank had assets of approximately $106 million at March 31, 2015.

The third merger agreement signed during the quarter is with Premier Valley Bank, a community bank based in Fresno, California, that had assets of approximately $647 million at March 31, 2015. Under this agreement, Premier Valley will become a wholly-owned subsidiary of Heartland and operate under its present name and management team as Heartland's tenth state-chartered bank. Premier Valley shareholders will receive approximately $95 million or $7.73 per share of Premier Valley common stock in the merger, and may elect to receive this payment in shares of Heartland common stock or in cash, subject to proration so that 70% of the total payment is in Heartland common stock and 30% in cash. The transaction is expected to close during the fourth quarter of 2015.

“Expansion of our banking franchise through both organic and acquired growth remains a high priority for Heartland. The second quarter proved to be very active in terms of expansion with three acquisition announcements,” Fuller said.

Net Interest Margin As a Percentage of Average Earning Assets and In Dollars Increases

Net interest margin, expressed as a percentage of average earning assets, was 3.97% during the second quarter of 2015, an increase from 3.90% during the first quarter of 2015 and a decrease from 4.04% during the second quarter of 2014.

Fuller said, “We are very pleased to see net interest margin maintained near 4 percent. Our success in maintaining margin above many of our peers is a result of continuous pricing discipline on both sides of the balance sheet.”

Interest income increased $6.2 million or 10% to $65.4 million in the second quarter of 2015 from the $59.3 million recorded in the second quarter of 2014. After adjustment to add $2.4 million for the second quarter of 2015 and $2.7 million for the second quarter of 2014 for income taxes saved on the interest earned on nontaxable securities and loans, on a tax-equivalent basis, interest income in the second quarter of 2015 was $67.8 million compared to $62.0 million in the second quarter of 2014. The increase in interest income in the second quarter of 2015, as compared to the second quarter of 2014, was primarily due to an increase in average earning assets, which increased $748.7 million or 14% during the second quarter of 2015 compared to the second quarter of 2014, with approximately $412.7 million attributable to the acquisition completed during the first quarter of 2015 and the remainder attributable primarily to loan growth experienced during the last half of 2014 and first half of 2015. Also contributing to the increase in interest income during the second quarter of 2015 compared to the second quarter of 2014 was a change in the composition of average earning assets from lower-yielding investments to higher-yielding loans. The percentage of average net loans and leases to total earning assets was 73% during the second quarter of 2015 compared to 69% during the second quarter of 2014.

Interest expense for the second quarter of 2015 was $7.8 million, a decrease of $667,000 or 8% from $8.5 million in the second quarter of 2014. Average interest bearing liabilities increased $360.0 million or 9% for the quarter ended June 30, 2015, as compared to the same quarter in 2014, while the average interest rate paid on Heartland's interest bearing deposits and borrowings declined 13 basis points from 0.83% in the second quarter of 2014 to 0.70% in the second quarter of 2015. The average interest rate paid on savings deposits was 0.23% during the second quarter of 2015 compared to 0.32% during the second quarter of 2014 and the average interest rate paid on time deposits was 0.97% during the second quarter of 2015 compared to 1.14% during the second quarter of 2014.

Net interest income increased $6.8 million or 13% to $57.6 million in the second quarter of 2015 from the $50.8 million recorded in the second quarter of 2014. Net interest income on a tax-equivalent basis totaled $60.1 million during the second quarter of 2015, an increase of $6.5 million or 12% from the $53.6 million recorded during the second quarter of 2014.

Noninterest Income Increases; Noninterest Expense Increases

Noninterest income totaled $30.7 million during the second quarter of 2015 compared to $21.5 million during the second quarter of 2014, an increase of $9.1 million or 42%. Net securities gains totaled $3.1 million during the second quarter of 2015 compared to $854,000 during the second quarter of 2014, an increase of $2.3 million or 264%. Gains on sale of loans held for sale totaled $14.6 million during the second quarter of 2015 compared to $8.8 million during the second quarter of 2014, an increase of $5.8 million or 66%.

For the second quarter of 2015, noninterest expenses totaled $63.5 million compared to $54.7 million during the second quarter of 2014, an increase of $8.8 million or 16%. The largest contributor to this increase was salaries and employee benefits, which increased $4.3 million or 13%, with $1.1 million attributable to the acquisition. Salaries and employee benefits were also affected by increases in incentive plan accruals and higher compensation in the mortgage segment during the second quarter of 2015. The other noninterest expense categories with significant increases during the second quarter of 2015 in comparison with the second quarter of 2014 were professional fees, which increased $1.0 million or 25%, and other noninterest expenses, which increased $3.1 million or 46%. Included in the 2015 second quarter other noninterest expenses was $2.2 million in costs associated with a partnership investment in a commercial and residential real estate project which qualifies for historic rehabilitation tax credits. These credits are included as a reduction to income tax expense as further described below. Excluding the effect of the cost associated with the tax credit investment, other noninterest expenses increased $945,000 or 14% during the second quarter of 2015 in comparison to the second quarter of 2014.

Heartland's effective tax rate was 20.83% for the second quarter of 2015 compared to 27.81% for the second quarter of 2014. Included in Heartland's income taxes for the second quarter of 2015 were federal historic rehabilitation tax credits totaling $2.9 million associated with Heartland's ownership interest in a qualifying real estate project. Federal low-income housing tax credits included in Heartland's income taxes totaled $145,000 during the second quarter of 2015 compared to $200,000 during the second quarter of 2014. Heartland's effective tax rate was also affected by the level of tax-exempt interest income which, as a percentage of pre-tax income, was 23.35% during the second quarter of 2015 compared to 34.37% during the second quarter of 2014. The tax-equivalent adjustment for this tax-exempt interest income was $2.4 million during the second quarter of 2015 and $2.7 million during the second quarter of 2014.

Loans Increase Significantly and Deposits Decrease Slightly

Total assets were $6.72 billion at June 30, 2015, an increase of $665.2 million or 11% since year-end 2014. Total assets of Community Banc-Corp of Sheboygan, Inc. at acquisition date were $525.3 million. Securities represented 24% of total assets at June 30, 2015, compared to 28% at year-end 2014.

Total loans and leases held to maturity were $4.45 billion at June 30, 2015, compared to $3.88 billion at year-end 2014, an increase of $573.1 million or 15%, which includes $395.0 million acquired in the Community Bank & Trust merger. Exclusive of this acquisition, total loans and leases held to maturity increased $178.1 million or 9% annualized since year-end 2014.

Total deposits were $5.32 billion as of June 30, 2015, compared to $4.77 billion at year-end 2014, an increase of $549.2 million or 12%, with $434.0 million attributable to the Community Bank & Trust acquisition. Demand deposits totaled $1.54 billion at June 30, 2015, an increase of $241.2 million or 19% since year-end 2014, with $117.1 million attributable to the acquisition. Included in the deposit growth during the first six months of 2015 was a $140.3 million increase in brokered time deposits, the majority of which was issued during the second quarter to replace higher cost long-term FHLB advances and wholesale repurchase agreements that matured during the first six months of 2015.

Fuller stated, “An important contributor to Heartland’s solid performance is excellent loan growth of over $200 million in the second quarter. Growth in quality loans remains our number one priority and pipelines point toward continued growth.”

Decrease in Nonperforming Assets; Increase in Provision for Loan Losses

Nonperforming loans, excluding those covered under loss sharing agreements, were $26.7 million or 0.60% of total loans and leases at June 30, 2015, compared to $25.1 million or 0.63% of total loans and leases at December 31, 2014. Exclusive of $6.1 million of nonperforming assets acquired in the acquisition of Community Bank & Trust, nonperforming assets decreased $6.7 million or 15% since year-end 2014.

The allowance for loan and lease losses at June 30, 2015, was 1.03% of loans and leases and 170.78% of nonperforming loans compared to 1.07% of loans and leases and 168.58% of nonperforming loans at December 31, 2014. The provision for loan losses was $5.7 million for the second quarter of 2015 compared to $2.8 million for the second quarter of 2014, with a considerable portion of the increase attributed to the loan growth experienced during the quarter.

“Credit quality remains exceptional with non-performing loans to total loans at .60%, a four basis point improvement over the previous quarter. Steady and significant improvement in credit quality is an important driver of Heartland’s excellent performance,” Fuller concluded.

Conference Call Details
Heartland will host a conference call for investors at 5:00 p.m. EDT today. To participate, dial 877-407-0782 at least five minutes before start time. To listen to the live webcast, log on to www.htlf.com at least 15 minutes before start time. A replay will be available until July 25, 2016, by logging on to www.htlf.com.

About Heartland Financial USA, Inc.
Heartland Financial USA, Inc. is a diversified financial services company providing banking, mortgage, wealth management, investment, insurance and consumer finance services to individuals and businesses. Heartland currently has 85 banking locations in 63 communities in Iowa, Illinois, Wisconsin, New Mexico, Arizona, Montana, Colorado, Minnesota, Kansas and Missouri, and loan production offices in California, Nevada, Idaho, Oregon and Washington. Additional information about Heartland Financial USA, Inc. is available at www.htlf.com.

Safe Harbor Statement
This release, and future oral and written statements of Heartland and its management, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Heartland's financial condition, results of operations, plans, objectives, future performance and business. Although these forward-looking statements are based upon the beliefs, expectations and assumptions of Heartland's management, there are a number of factors, many of which are beyond the ability of management to control or predict, that could cause actual results to differ materially from those in its forward-looking statements. These factors, which are detailed in the risk factors included in Heartland's Annual Report on Form 10-K filed with the Securities and Exchange Commission, include, among others: (i) the strength of the local and national economy; (ii) the economic impact of past and any future terrorist threats and attacks and any acts of war, (iii) changes in state and federal laws, regulations and governmental policies concerning the Company's general business; (iv) changes in interest rates and prepayment rates of the Company's assets; (v) increased competition in the financial services sector and the inability to attract new customers; (vi) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (vii) the potential impact of acquisitions, (viii) the loss of key executives or employees; (ix) changes in consumer spending; (x) unexpected outcomes of existing or new litigation involving the Company; and (xi) changes in accounting policies and practices. All statements in this release, including forward-looking statements, speak only as of the date they are made, and Heartland undertakes no obligation to update any statement in light of new information or future events.

 
HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
   

 For the Quarter Ended 

   

 For the Six Months Ended 

June 30, June 30,
      2015     2014     2015     2014
Interest Income        
Interest and fees on loans and leases $ 55,824 $ 48,101 $ 108,873 $ 94,485
Interest on securities:
Taxable 6,739 7,447 13,871 15,208
Nontaxable 2,874 3,708 5,790 6,830
Interest on federal funds sold 1 2
Interest on deposits in other financial institutions   3     7     7     14  
Total Interest Income   65,441     59,263     128,543     116,537  
Interest Expense
Interest on deposits 3,819 4,577 7,991 9,355
Interest on short-term borrowings 212 202 410 428
Interest on other borrowings   3,766     3,685     8,568     7,343  
Total Interest Expense   7,797     8,464     16,969     17,126  
Net Interest Income 57,644 50,799 111,574 99,411
Provision for loan and lease losses   5,674     2,751     7,345     9,082  
Net Interest Income After Provision for Loan and Lease Losses   51,970     48,048     104,229     90,329  
Noninterest Income
Service charges and fees 5,900 5,254 11,304 10,150
Loan servicing income 1,163 1,393 2,204 2,904
Trust fees 3,913 3,343 7,544 6,553
Brokerage and insurance commissions 916 1,158 2,003 2,281
Securities gains, net 3,110 854 7,463 1,635
Loss on trading account securities (38 )
Gains on sale of loans held for sale 14,599 8,796 28,341 15,175
Income on bank owned life insurance 459 339 983 702
Other noninterest income   601     398     1,482     1,023  
Total Noninterest Income   30,661     21,535     61,324     40,385  
Noninterest Expense
Salaries and employee benefits 36,851 32,563 73,489 64,882
Occupancy 4,028 3,984 8,287 8,034
Furniture and equipment 2,176 2,085 4,282 3,975
Professional fees 5,249 4,214 11,293 8,740
FDIC insurance assessments 899 980 1,855 1,960
Advertising 1,333 1,511 2,514 2,699
Intangible assets amortization 715 591 1,346 1,215
Other real estate and loan collection expenses 753 518 1,218 1,570
Loss on sales/valuations of assets, net 1,509 1,379 1,862 1,542
Other noninterest expenses   9,969     6,834     16,950     12,580  
Total Noninterest Expense   63,482     54,659     123,096     107,197  
Income Before Income Taxes 19,149 14,924 42,457 23,517
Income taxes   3,989     4,150     11,588     5,853  
Net Income 15,160 10,774 30,869 17,664
Preferred dividends and discount   (204 )   (204 )   (408 )   (408 )
Net Income Available to Common Stockholders $ 14,956   $ 10,570   $ 30,461   $ 17,256  
Earnings per common share-diluted $ 0.72 $ 0.56 $ 1.47 $ 0.92
Weighted average shares outstanding-diluted 20,877,236 18,746,735 20,681,800 18,739,067
 
 
HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
    For the Quarter Ended
      6/30/2015     3/31/2015     12/31/2014     9/30/2014     6/30/2014
Interest Income                
Interest and fees on loans and leases $ 55,824 $ 53,049 $ 50,226 $ 49,311 $ 48,101
Interest on securities:
Taxable 6,739 7,132 6,972 7,547 7,447
Nontaxable 2,874 2,916 3,190 3,249 3,708
Interest on federal funds sold 1 1 1
Interest on deposits in other financial institutions   3     4     3     6     7  
Total Interest Income   65,441     63,102     60,391     60,114     59,263  
Interest Expense
Interest on deposits 3,819 4,172 4,144 4,655 4,577
Interest on short-term borrowings 212 198 222 227 202
Interest on other borrowings   3,766     4,802     3,854     3,741     3,685  
Total Interest Expense   7,797     9,172     8,220     8,623     8,464  
Net Interest Income 57,644 53,930 52,171 51,491 50,799
Provision for loan and lease losses   5,674     1,671     2,866     2,553     2,751  
Net Interest Income After Provision for Loan and Lease Losses   51,970     52,259     49,305     48,938     48,048  
Noninterest Income
Service charges and fees 5,900 5,404 5,078 4,857 5,254
Loan servicing income 1,163 1,041 1,360 1,319 1,393
Trust fees 3,913 3,631 3,350 3,194 3,343
Brokerage and insurance commissions 916 1,087 1,115 1,044 1,158
Securities gains, net 3,110 4,353 1,208 825 854
Loss on trading account securities
Gains on sale of loans held for sale 14,599 13,742 7,778 8,384 8,796
Income on bank owned life insurance 459 524 399 371 339
Other noninterest income   601     881     945     612     398  
Total Noninterest Income   30,661     30,663     21,233     20,606     21,535  
Noninterest Expense
Salaries and employee benefits 36,851 36,638 31,415 33,546 32,563
Occupancy 4,028 4,259 3,905 3,807 3,984
Furniture and equipment 2,176 2,106 2,097 2,033 2,085
Professional fees 5,249 6,044 5,072 4,429 4,214
FDIC insurance assessments 899 956 960 888 980
Advertising 1,333 1,181 1,442 1,383 1,511
Intangible assets amortization 715 631 487 521 591
Other real estate and loan collection expenses 753 465 524 215 518
Loss on sales/valuations of assets, net 1,509 353 116 447 1,379
Other noninterest expenses   9,969     6,981     7,930     7,386     6,834  
Total Noninterest Expense   63,482     59,614     53,948     54,655     54,659  
Income Before Income Taxes 19,149 23,308 16,590 14,889 14,924
Income taxes   3,989     7,599     4,327     2,916     4,150  
Net Income 15,160 15,709 12,263 11,973 10,774
Preferred dividends and discount   (204 )   (204 )   (204 )   (205 )   (204 )
Net Income Available to Common Stockholders $ 14,956   $ 15,505   $ 12,059   $ 11,768   $ 10,570  
Earnings per common share-diluted $ 0.72 $ 0.76 $ 0.64 $ 0.63 $ 0.56
Weighted average shares outstanding-diluted 20,877,236 20,493,266 18,762,272 18,752,748 18,746,735
 
 
HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
    As Of
      6/30/2015     3/31/2015     12/31/2014     9/30/2014     6/30/2014
Assets                
Cash and due from banks $ 111,909 $ 104,475 $ 64,150 $ 63,400 $ 98,613
Federal funds sold and other short-term investments   7,813     7,257     9,721     4,436     4,047  
Cash and cash equivalents 119,722 111,732 73,871 67,836 102,660
Time deposits in other financial institutions 2,355 2,605 2,605 2,605 3,105
Securities:
Available for sale, at fair value 1,315,699 1,353,537 1,401,868 1,369,703 1,412,809
Held to maturity, at cost 283,258 284,030 284,587 255,312 257,217
Other investments, at cost 20,455 18,297 20,498 20,514 20,932
Loans held for sale 105,898 105,670 70,514 93,054 87,173
Loans and leases:
Held to maturity 4,449,823 4,243,689 3,876,745 3,798,305 3,694,734
Loans covered by loss share agreements 1,258 3,850 4,379
Allowance for loan and lease losses   (45,614 )   (41,854 )   (41,449 )   (41,698 )   (40,892 )
Loans and leases, net 4,404,209 4,201,835 3,836,554 3,760,457 3,658,221
Premises, furniture and equipment, net 143,423 145,132 130,713 132,240 133,127
Other real estate, net 16,983 19,097 19,016 20,475 24,395
Goodwill 54,162 51,073 35,583 35,583 35,583
Other intangible assets, net 45,226 44,024 33,932 33,399 32,732
Cash surrender value on life insurance 96,693 95,118 82,638 82,224 81,840
FDIC indemnification asset 83 124
Other assets   108,924     74,126     59,433     61,122     63,792  
Total Assets $ 6,717,007   $ 6,506,276   $ 6,051,812   $ 5,934,607   $ 5,913,710  
Liabilities and Equity
Liabilities
Deposits:
Demand $ 1,536,355 $ 1,515,004 $ 1,295,193 $ 1,274,439 $ 1,221,703
Savings 2,816,666 2,863,744 2,687,493 2,599,850 2,556,784
Time   964,248     887,650     785,336     852,430     862,995  
Total deposits 5,317,269 5,266,398 4,768,022 4,726,719 4,641,482
Short-term borrowings 477,918 259,335 330,264 348,305 420,494
Other borrowings 296,594 361,300 395,705 334,311 329,507
Accrued expenses and other liabilities   46,020     51,896     61,504     41,873     49,806  
Total Liabilities 6,137,801 5,938,929 5,555,495 5,451,208 5,441,289
Stockholders' Equity
Preferred equity 81,698 81,698 81,698 81,698 81,698
Common stock 20,616 20,586 18,511 18,477 18,468
Capital surplus 148,789 147,642 95,816 94,393 93,334
Retained earnings 325,106 312,212 298,764 288,555 278,632
Accumulated other comprehensive income 3,059 5,255 1,528 276 289
Treasury stock at cost   (62 )   (46 )            
Total Equity   579,206     567,347     496,317     483,399     472,421  
Total Liabilities and Equity $ 6,717,007   $ 6,506,276   $ 6,051,812   $ 5,934,607   $ 5,913,710  
 
               
HEARTLAND FINANCIAL USA, INC
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
For the Quarter Ended For the Six Months Ended
June 30, June 30,
      2015     2014     2015     2014
Average Balances
Assets $ 6,625,797 $ 5,800,104 $ 6,540,509 $ 5,785,309
Loans and leases, net of unearned 4,447,124 3,692,159 4,357,855 3,631,977
Deposits 5,302,235 4,665,993 5,232,398 4,649,683
Earning assets 6,069,844 5,321,149 5,964,112 5,299,857
Interest bearing liabilities 4,451,200 4,091,233 4,424,840 4,090,466
Common stockholders' equity 489,394 380,561 476,295 373,265
Total stockholders' equity 571,092 462,259 557,933 454,963
Tangible common stockholders' equity 424,245 334,747 412,834 326,866
 
Key Performance Ratios
Annualized return on average assets 0.91 % 0.73 % 0.94 % 0.60 %
Annualized return on average common equity 12.26 % 11.14 % 12.90 % 9.32 %
Annualized return on average common tangible equity 14.14 % 12.66 % 14.88 % 10.65 %
Annualized ratio of net charge-offs to average loans and leases 0.17 % 0.05 % 0.07 % 0.55 %
Annualized net interest margin(1) 3.97 % 4.04 % 3.93 % 3.98 %
Efficiency ratio, fully taxable equivalent(2) 67.43 % 70.97 % 69.14 %

72.88

%
 
(1) Computed on a tax equivalent basis using an effective tax rate of 35%.
(2) Refer to the "Non-GAAP Reconciliation-Efficiency Ratio" table that follows for details of this non-GAAP measure.
 
 
HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
    For the Quarter Ended
      6/30/2015     3/31/2015     12/31/2014     9/30/2014     6/30/2014
Average Balances                
Assets $ 6,625,797 $ 6,454,271 $ 5,974,188 $ 5,882,792 $ 5,800,104
Loans and leases, net of unearned 4,447,124 4,267,593 3,899,465 3,812,218 3,692,159
Deposits 5,302,235 5,161,782 4,784,592 4,710,177 4,665,993
Earning assets 6,069,844 5,857,204 5,508,287 5,426,336 5,321,149
Interest bearing liabilities 4,451,200 4,398,184 4,123,478 4,099,526 4,091,233
Common stockholders' equity 489,394 463,048 406,664 393,740 380,561
Total stockholders' equity 571,092 544,746 488,362 475,438 462,259
Tangible common stockholders' equity 424,245 401,294 361,916 348,423 334,747
 
Key Performance Ratios
Annualized return on average assets 0.91 % 0.97 % 0.80 % 0.79 % 0.73 %
Annualized return on average common equity 12.26 % 13.58 % 11.77 % 11.86 % 11.14 %
Annualized return on average common tangible equity 14.14 % 15.67 % 13.22 % 13.40 % 12.66 %
Annualized ratio of net charge-offs to average loans and leases 0.17 % 0.12 % 0.32 % 0.18 % 0.05 %
Annualized net interest margin(1) 3.97 % 3.90 % 3.94 % 3.96 % 4.04 %
Efficiency ratio, fully taxable equivalent(2) 67.43 % 70.95 % 69.99 % 70.76 % 70.97 %
 
(1) Computed on a tax equivalent basis using an effective tax rate of 35%.
(2) Refer to the "Non-GAAP Reconciliation-Efficiency Ratio" table that follows for details of this non-GAAP measure.
 
 
HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
    For the Quarter Ended     For the Six Months Ended
June 30, June 30,
Reconciliation of Non-GAAP Measure-Efficiency Ratio     2015     2014     2015     2014
Net interest income $ 57,644     $ 50,799 $ 111,574     $ 99,411
Taxable equivalent adjustment(1)   2,408     2,762     4,801     5,134  
Fully taxable equivalent net interest income 60,052 53,561 116,375 104,545
Noninterest income 30,661 21,535 61,324 40,385
Securities gains, net   (3,110 )   (854 )   (7,463 )   (1,635 )
Adjusted income $ 87,603   $ 74,242   $ 170,236   $ 143,295  
 
Total noninterest expenses $ 63,482 $ 54,659 $ 123,096 $ 107,197
Less:
Intangible assets amortization 715 591 1,346 1,215
Partnership investment in historic rehabilitation tax credits 2,190 2,190
Loss on sales/valuations of assets, net   1,509     1,379     1,862     1,542  
Adjusted noninterest expenses $ 59,068   $ 52,689   $ 117,698   $ 104,440  
 
Efficiency ratio, fully taxable equivalent(2) 67.43 % 70.97 % 69.14 % 72.88 %
 

(1) Computed on a tax equivalent basis using an effective tax rate of 35%.
(2) Efficiency ratio, fully taxable equivalent, expresses noninterest expenses as a percentage of fully taxable equivalent net interest income and noninterest income. Noninterest income and noninterest expenses exclude items that management believes are not comparable among the periods presented. This measure should not be considered a substitute for operating results determined in accordance with GAAP. Management believes the presentation of the non-GAAP measure provides supplemental useful information for proper understanding of the financial results.

 
HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
      For the Quarter Ended
    6/30/2015     3/31/2015     12/31/2014     9/30/2014     6/30/2014
Reconciliation of Non-GAAP Measure-Efficiency Ratio                
Net interest income $ 57,644 $ 53,930 $ 52,171 $ 51,491 $ 50,799
Taxable equivalent adjustment(1)   2,408     2,393     2,550     2,613     2,762  
Fully taxable equivalent net interest income 60,052 56,323 54,721 54,104 53,561
Noninterest income 30,661 30,663 21,233 20,606 21,535
Securities gains, net   (3,110 )   (4,353 )   (1,208 )   (825 )   (854 )
Adjusted income $ 87,603   $ 82,633   $ 74,746   $ 73,885   $ 74,242  
 
Total noninterest expenses $ 63,482 $ 59,614 $ 53,948 $ 54,655 $ 54,659
Less:
Intangible assets amortization 715 631 487 521 591
Partnership investment in historic rehabilitation tax credits 2,190 1,028 1,408
Loss on sales/valuation of assets, net   1,509     353     116     447     1,379  
Adjusted noninterest expenses $ 59,068   $ 58,630   $ 52,317   $ 52,279   $ 52,689  
 
Efficiency ratio, fully taxable equivalent(2) 67.43 % 70.95 % 69.99 % 70.76 % 70.97 %
 

(1) Computed on a tax equivalent basis using an effective tax rate of 35%.
(2) Efficiency ratio, fully taxable equivalent, expresses noninterest expenses as a percentage of fully taxable equivalent net interest income and noninterest income. Noninterest income and noninterest expenses exclude items that management believes are not comparable among the periods presented. This measure should not be considered a substitute for operating results determined in accordance with GAAP. Management believes the presentation of the non-GAAP measure provides supplemental useful information for proper understanding of the financial results.

 
HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE AND FULL TIME EQUIVALENT EMPLOYEE DATA
    As of and for the Quarter Ended
      6/30/2015     3/31/2015     12/31/2014     9/30/2014     6/30/2014
Common Share Data                
Book value per common share $ 24.13 $ 23.59 $ 22.40 $ 21.74 $ 21.16
Tangible book value per common share(1) $ 20.84 $ 20.41 $ 19.99 $ 19.30 $ 18.69
ASC 320 effect on book value per common share $ 0.21 $ 0.38 $ 0.19 $ 0.10 $ 0.13
Common shares outstanding, net of treasury stock 20,614,325 20,585,072 18,511,125 18,477,463 18,467,646
Tangible capital ratio(2) 6.46 % 6.52 % 6.16 % 6.06 % 5.88 %
 
Loan and Lease Data
Loans held to maturity:
Commercial and commercial real estate $ 3,199,717 $ 3,067,315 $ 2,743,140 $ 2,709,544 $ 2,650,517
Residential mortgage 443,026 413,938 380,341 360,309 341,697
Agricultural and agricultural real estate 444,110 411,732 423,827 404,423 389,918
Consumer 364,441 351,981 330,555 326,148 315,234
Unearned discount and deferred loan fees   (1,471 )   (1,277 )   (1,118 )   (2,119 )   (2,632 )
Total loans and leases held to maturity $ 4,449,823   $ 4,243,689   $ 3,876,745   $ 3,798,305   $ 3,694,734  
 
Loans covered under loss share agreements:
Commercial and commercial real estate $ $ $ 54 $ 1,188 $ 1,208
Residential mortgage 1,204 1,762 1,995
Agricultural and agricultural real estate 573 567
Consumer               327     609  
Total loans and leases covered under loss share agreements $   $   $ 1,258   $ 3,850   $ 4,379  
 
Other Selected Trend Information
Effective tax rate 20.83 % 32.60 % 26.08 % 19.59 % 27.81 %
Full time equivalent employees 1,788 1,776 1,631 1,646 1,658
Trust assets under management $ 1,957,616 $ 2,064,044 $ 1,860,546 $ 1,820,612 $ 1,859,643
Total Residential Mortgage Loan Applications $ 615,463 $ 647,487 $ 383,845 $ 445,039 $ 460,533
Residential Mortgage Loans Originated $ 421,798 $ 319,581 $ 293,268 $ 312,428 $ 277,895
Residential Mortgage Loans Sold $ 402,151 $ 268,786 $ 281,250 $ 283,677 $ 208,429
Residential Mortgage Loan Servicing Portfolio $ 3,785,794 $ 3,578,409 $ 3,498,724 $ 3,362,717 $ 3,198,510
 

(1) Total common stockholders' equity less goodwill and intangible assets (excluding mortgage servicing rights) divided by common shares outstanding, net of treasury. This is a non-GAAP financial measure but has been included as it is considered to be a critical metric with which to analyze and evaluate financial condition and capital strength.
(2) Total common stockholders' equity less goodwill and intangible assets (excluding mortgage servicing rights) divided by total assets less intangible assets (excluding mortgage servicing rights). This is a non-GAAP financial measure but has been included as it is considered to be a critical metric with which to analyze and evaluate financial condition and capital strength.

 
HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
    As of and for the Quarter Ended
      6/30/2015     3/31/2015     12/31/2014     9/30/2014     6/30/2014
Allowance for Loan and Lease Losses                
Balance, beginning of period $ 41,854 $ 41,449 $ 41,698 $ 40,892 $ 38,573
Provision for loan and lease losses 5,674 1,671 2,866 2,553 2,751
Charge-offs on loans not covered by loss share agreements (2,734 ) (2,004 ) (4,020 ) (2,649 ) (1,392 )
Charge-offs on loans covered by loss share agreements (8 )
Recoveries 820 738 905 894 913
Recoveries on loans covered by loss share agreements               8     55  
Balance, end of period $ 45,614   $ 41,854   $ 41,449   $ 41,698   $ 40,892  
 
Asset Quality
Not covered under loss share agreements:
Nonaccrual loans $ 26,710 $ 27,023 $ 25,070 $ 30,130 $ 29,076
Loans and leases past due ninety days or more as to interest or principal payments 9
Other real estate owned 16,983 19,097 19,016 19,873 23,761
Other repossessed assets   544     404     445     506     414  
Total nonperforming assets not covered under loss share agreements $ 44,237   $ 46,533   $ 44,531   $ 50,509   $ 53,251  
 
Covered under loss share agreements:
Nonaccrual loans $ $ $ 278 $ 297 $ 297
Other real estate owned               602     634  
Total nonperforming assets covered under loss share agreements $   $   $ 278   $ 899   $ 931  
 
Performing troubled debt restructured loans $ 10,903 $ 10,904 $ 12,133 $ 11,994 $ 12,076
 
Nonperforming Assets Activity
Balance, beginning of period $ 46,533 $ 44,809 $ 51,408 $ 54,182 $ 61,228
Net loan charge offs (1,914 ) (1,266 ) (3,115 ) (1,747 ) (432 )
New nonperforming loans 4,676 4,059 5,226 5,911 4,264
Acquired nonperforming assets 6,101
Reduction of nonperforming loans(1) (1,409 ) (4,493 ) (6,446 ) (2,679 ) (4,145 )
OREO/Repossessed assets sales proceeds (3,202 ) (2,312 ) (1,252 ) (4,313 ) (5,878 )
OREO/Repossessed assets writedowns, net (565 ) (319 ) (918 ) (38 ) (902 )
Net activity at Citizens Finance Co.   118     (46 )   (94 )   92     47  
Balance, end of period $ 44,237   $ 46,533   $ 44,809   $ 51,408   $ 54,182  
 
Asset Quality Ratios Excluding Assets Covered Under Loss Share Agreements
Ratio of nonperforming loans and leases to total loans and leases 0.60 % 0.64 % 0.63 % 0.79 % 0.79 %
Ratio of nonperforming assets to total assets 0.66 % 0.72 % 0.73 % 0.85 % 0.90 %
Annualized ratio of net loan charge-offs to average loans and leases 0.17 % 0.12 % 0.32 % 0.18 % 0.05 %
Allowance for loan and lease losses as a percent of loans and leases 1.03 % 0.99 % 1.07 % 1.10 % 1.11 %
Allowance for loan and lease losses as a percent of nonperforming loans and leases 170.78 % 154.83 % 168.58 % 138.40 % 140.64 %
Loans delinquent 30-89 days as a percent of total loans 0.31 % 0.42 % 0.21 % 0.32 % 0.25 %
 
(1) Includes principal reductions and transfers to performing status
 
 
HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS
    For the Quarter Ended
June 30, 2015     June 30, 2014
Average         Average        
      Balance     Interest    

 Rate  

    Balance     Interest    

  Rate  

Earning Assets
Securities:
Taxable $ 1,324,870 $ 6,739 2.04 % $ 1,287,411 $ 7,447 2.32 %
Nontaxable(1)   325,023     4,422 5.46     374,093     5,705 6.12  
Total securities   1,649,893     11,161 2.71     1,661,504     13,152 3.17  
Interest bearing deposits 10,889 3 0.11 7,236 7 0.39
Federal funds sold   5,109     1 0.08     202      
Loans and leases:(2)
Commercial and commercial real estate(1) 3,122,239 37,666 4.84 2,584,110 31,418 4.88
Residential mortgage 538,170 5,415 4.04 428,160 4,617 4.33
Agricultural and agricultural real estate(1) 428,284 5,280 4.94 371,191 4,742 5.12
Consumer 358,431 7,204 8.06 308,698 6,484 8.42
Fees on loans 1,119 1,604
Less: allowance for loan and lease losses   (43,171 )       (39,952 )    
Net loans and leases   4,403,953     56,684 5.16     3,652,207     48,865 5.37  
Total earning assets   6,069,844     67,849 4.48 %   5,321,149     62,024 4.68 %
Nonearning Assets   555,953     478,955  
Total Assets $ 6,625,797   $ 5,800,104  
Interest Bearing Liabilities
Savings $ 2,852,272 $ 1,642 0.23 % $ 2,585,831 $ 2,090 0.32 %
Time, $100,000 and over 348,661 794 0.91 328,950 842 1.03
Other time deposits 552,115 1,383 1.00 543,326 1,645 1.21
Short-term borrowings 373,021 212 0.23 300,936 202 0.27
Other borrowings   325,131     3,766 4.65     332,190     3,685 4.45  
Total interest bearing liabilities   4,451,200     7,797 0.70 %   4,091,233     8,464 0.83 %
Noninterest Bearing Liabilities
Noninterest bearing deposits 1,549,187 1,207,886
Accrued interest and other liabilities   54,318     38,726  
Total noninterest bearing liabilities   1,603,505     1,246,612  
Stockholders' Equity   571,092     462,259  
Total Liabilities and Stockholders' Equity $ 6,625,797   $ 5,800,104  
Net interest income(1) $ 60,052 $ 53,560
Net interest spread(1) 3.78 % 3.85 %
Net interest income to total earning assets(1) 3.97 % 4.04 %
Interest bearing liabilities to earning assets 73.33 % 76.89 %
 
(1) Computed on a tax equivalent basis using an effective tax rate of 35%
(2) Nonaccrual loans are included in average loans outstanding.
 
 
HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS
    For the Six Months Ended
June 30, 2015     June 30, 2014
Average         Average        
Balance Interest

 Rate  

Balance Interest

 Rate  

Earning Assets
Securities:
Taxable $ 1,304,304 $ 13,871 2.14 % $ 1,315,116 $ 15,208 2.33 %
Nontaxable(1)   328,163     8,908 5.47     386,438     10,508 5.48  
Total securities   1,632,467     22,779 2.81     1,701,554     25,716 3.05  
Interest bearing deposits 10,046 7 0.14 6,828 14 0.41
Federal funds sold   6,356     2 0.06     504      
Loans and leases:(2)
Commercial and commercial real estate(1) 3,072,995 73,541 4.83 2,542,457 61,730 4.90
Residential mortgage 508,723 10,298 4.08 414,254 8,967 4.37
Agricultural and agricultural real estate(1) 423,295 10,310 4.91 372,681 9,477 5.13
Consumer 352,842 14,092 8.05 302,585 12,668 8.44
Fees on loans 2,315 3,099
Less: allowance for loan and lease losses   (42,612 )       (41,006 )    
Net loans and leases   4,315,243     110,556 5.17     3,590,971     95,941 5.39  
Total earning assets   5,964,112     133,344 4.51 %   5,299,857     121,671 4.63 %
Nonearning Assets   576,397     485,452  
Total Assets $ 6,540,509   $ 5,785,309  
Interest Bearing Liabilities
Savings $ 2,841,675 $ 3,437 0.24 % $ 2,562,256 $ 4,152 0.33 %
Time, $100,000 and over 346,523 1,632 0.95 334,615 1,717 1.03
Other time deposits 544,187 2,922 1.08 555,097 3,486 1.27
Short-term borrowings 334,105 410 0.25 303,489 428 0.28
Other borrowings   358,350     8,568 4.82     335,009     7,342 4.42  
Total interest bearing liabilities   4,424,840     16,969 0.77 %   4,090,466     17,125 0.84 %
Noninterest Bearing Liabilities
Noninterest bearing deposits 1,500,013 1,197,715
Accrued interest and other liabilities   57,663     42,165  
Total noninterest bearing liabilities   1,557,676     1,239,880  
Stockholders' Equity   557,993     454,963  
Total Liabilities and Stockholders' Equity $ 6,540,509   $ 5,785,309  
Net interest income(1) $ 116,375 $ 104,546
Net interest spread(1) 3.74 % 3.79 %
Net interest income to total earning assets(1) 3.93 % 3.98 %
Interest bearing liabilities to earning assets 74.19 % 77.18 %
 
(1) Computed on a tax equivalent basis using an effective tax rate of 35%
(2) Nonaccrual loans are included in the average loans outstanding.
 
 
HEARTLAND FINANCIAL USA, INC.
SELECTED FINANCIAL DATA - SUBSIDIARY BANKS (Unaudited)
DOLLARS IN THOUSANDS
    As of and For the Quarter Ended
      6/30/2015     3/31/2015     12/31/2014     9/30/2014     6/30/2014
Total Assets                
Dubuque Bank and Trust Company $ 1,541,610 $ 1,413,772 $ 1,508,573 $ 1,389,241 $ 1,393,391
Wisconsin Bank & Trust 1,150,867 1,128,104 650,658 664,630 658,773
New Mexico Bank & Trust 1,141,575 1,113,031 1,142,580 1,069,722 1,050,117
Morrill & Janes Bank and Trust Company 860,781 888,321 898,161 867,346 837,148
Illinois Bank & Trust(1) 784,162 748,937 778,542 798,934 803,448
Arizona Bank & Trust 510,838 487,059 470,997 471,661 467,966
Rocky Mountain Bank 508,262 477,799 468,671 480,345 472,079
Minnesota Bank & Trust 195,201 169,254 167,808 165,580 165,250
Summit Bank & Trust       152,672         140,868         134,145         137,774         135,721  
Total Deposits
Dubuque Bank and Trust Company $ 1,144,932 $ 1,166,070 $ 1,211,896 $ 1,055,036 $ 1,001,798
Wisconsin Bank & Trust 985,804 939,157 554,722 564,674 558,654
New Mexico Bank & Trust 891,003 880,422 860,465 828,637 814,523
Morrill & Janes Bank and Trust Company 662,524 696,606 703,016 686,833 680,176
Illinois Bank & Trust(1) 645,354 625,885 600,357 654,592 649,082
Arizona Bank & Trust 405,680 378,422 351,635 390,167 382,011
Rocky Mountain Bank 417,647 407,958 395,609 395,728 384,856
Minnesota Bank & Trust 172,547 148,773 150,146 148,453 148,260
Summit Bank & Trust       122,928         124,113         111,859         118,896         118,275  
Net Income (Loss)
Dubuque Bank and Trust Company $ 7,416 $ 6,016 $ 5,184 $ 4,480 $ 4,135
Wisconsin Bank & Trust 2,950 2,181 1,737 1,077 1,299
New Mexico Bank & Trust 3,658 4,164 2,015 3,201 2,855
Morrill & Janes Bank and Trust Company 1,566 1,656 2,157 1,626 1,711
Illinois Bank & Trust(1) 1,309 2,482 1,721 1,538 1,465
Arizona Bank & Trust 998 677 1,159 551 1,243
Rocky Mountain Bank 1,196 1,156 1,684 1,448 388
Minnesota Bank & Trust 223 162 395 106 59
Summit Bank & Trust       (81 )       305         (491 )       (65 )       (82 )
Return on Average Assets
Dubuque Bank and Trust Company 2.02 % 1.66 % 1.43 % 1.27 % 1.20 %
Wisconsin Bank & Trust 1.04 0.83 1.05 0.65 0.82
New Mexico Bank & Trust 1.28 1.52 0.72 1.20 1.10
Morrill & Janes Bank and Trust Company 0.72 0.77 0.99 0.76 0.81
Illinois Bank & Trust(1) 0.66 1.35 0.87 0.73 0.73
Arizona Bank & Trust 0.81 0.58 0.97 0.47 1.05
Rocky Mountain Bank 0.98 0.99 1.42 1.22 0.34
Minnesota Bank & Trust 0.51 0.40 0.98 0.26 0.15
Summit Bank & Trust       (0.23 )       0.92         (1.46 )       (0.19 )       (0.26 )
Net Interest Margin as a Percentage of Average Earning Assets
Dubuque Bank and Trust Company 3.48 % 3.55 % 3.69 % 3.63 % 3.67 %
Wisconsin Bank & Trust 4.70 4.44 4.09 4.24 4.27
New Mexico Bank & Trust 3.79 3.88 3.73 3.85 3.96
Morrill & Janes Bank and Trust Company 3.54 3.35 3.35 3.51 3.50
Illinois Bank & Trust(1) 3.58 3.69 3.61 3.43 3.65
Arizona Bank & Trust 4.10 4.17 4.28 4.23 4.47
Rocky Mountain Bank 4.30 4.31 4.74 4.44 4.36
Minnesota Bank & Trust 3.71 3.95 4.02 3.84 3.88
Summit Bank & Trust       3.64         4.16         3.74         3.81         3.98  
 
(1) Includes Galena State Bank & Trust Co. for the quarters ended June 30, 2014, September 30, 2014 and December 31, 2014.
 
 
HEARTLAND FINANCIAL USA, INC.
SELECTED FINANCIAL DATA - SUBSIDIARY BANKS (Unaudited)
DOLLARS IN THOUSANDS
    As of
      6/30/2015     3/31/2015     12/31/2014     9/30/2014     6/30/2014
Total Portfolio Loans and Leases                
Dubuque Bank and Trust Company $ 945,574 $ 907,956 $ 952,114 $ 917,092 $ 908,729
Wisconsin Bank & Trust 876,321 865,323 502,310 509,364 496,486
New Mexico Bank & Trust 658,543 635,843 635,402 609,170 575,685
Morrill & Janes Bank and Trust Company 520,978 475,295 440,899 445,100 429,326
Illinois Bank & Trust(1) 455,247 439,757 429,772 419,202 414,803
Arizona Bank & Trust 383,588 355,986 342,731 335,648 328,438
Rocky Mountain Bank 375,860 343,008 354,455 356,049 339,479
Minnesota Bank & Trust 127,172 114,477 110,920 104,061 105,142
Summit Bank & Trust       95,275         87,913         90,515         88,199         84,040  
Allowance For Loan and Lease Losses
Dubuque Bank and Trust Company $ 9,223 $ 9,376 $ 9,403 $ 9,143 $ 9,441
Wisconsin Bank & Trust 6,397 5,148 5,216 5,327 4,564
New Mexico Bank & Trust 6,913 6,670 6,863 6,688 6,628
Morrill & Janes Bank and Trust Company 4,748 3,200 2,305 2,077 1,741
Illinois Bank & Trust(1) 5,304 5,056 4,734 5,343 4,888
Arizona Bank & Trust 3,700 3,566 3,258 3,432 3,754
Rocky Mountain Bank 3,347 3,155 3,450 4,048 4,179
Minnesota Bank & Trust 1,267 1,170 1,116 1,052 1,071
Summit Bank & Trust       896         850         1,554         996         1,099  
Nonperforming Loans and Leases
Dubuque Bank and Trust Company $ 4,593 $ 4,056 $ 3,067 $ 6,151 $ 5,718
Wisconsin Bank & Trust 9,530 8,857 2,967 3,335 3,617
New Mexico Bank & Trust 2,985 4,386 6,416 5,550 4,781
Morrill & Janes Bank and Trust Company 733 406 380 519 368
Illinois Bank & Trust(1) 5,132 5,499 5,939 7,611 7,039
Arizona Bank & Trust 1,003 1,009 2,156 2,732 2,946
Rocky Mountain Bank 1,443 2,111 1,954 3,008 3,471
Minnesota Bank & Trust
Summit Bank & Trust       630         40         1,076         583         567  
Allowance As a Percent of Total Loans and Leases
Dubuque Bank and Trust Company 0.98 % 1.03 % 0.99 % 1.00 % 1.04 %
Wisconsin Bank & Trust 0.73 0.59 1.04 1.05 0.92
New Mexico Bank & Trust 1.05 1.05 1.08 1.10 1.15
Morrill & Janes Bank and Trust Company 0.91 0.67 0.52 0.47 0.41
Illinois Bank & Trust(1) 1.17 1.15 1.10 1.27 1.18
Arizona Bank & Trust 0.96 1.00 0.95 1.02 1.14
Rocky Mountain Bank 0.89 0.92 0.97 1.14 1.23
Minnesota Bank & Trust 1.00 1.02 1.01 1.01 1.02
Summit Bank & Trust       0.94         0.97         1.72         1.13         1.31  
 
(1) Includes Galena State Bank & Trust Co. for the quarters ended June 30, 2014, September 30, 2014 and December 31, 2014.
 

Contacts

Heartland Financial USA, Inc.
Bryan R. McKeag, 563-589-1994
Executive Vice President
Chief Financial Officer
bmckeag@htlf.com

Contacts

Heartland Financial USA, Inc.
Bryan R. McKeag, 563-589-1994
Executive Vice President
Chief Financial Officer
bmckeag@htlf.com