Heartland Financial USA, Inc. (NASDAQ: HTLF) today
reported the following results for the quarter ended December 31,
2022 compared to the quarter ended December 31, 2021:
- Net income
available to common stockholders of $58.6 million compared to $47.6
million, an increase of $11.1 million or 23%.
- Earnings per
diluted common share of $1.37 compared to $1.12, an increase of
$0.25 or 22%.
- Net interest
income of $165.2 million compared to $137.2 million, an increase of
$28.0 million or 20%.
- Return on
average assets of 1.21% compared to 1.03%.
- Return on
average common equity of 15.02% compared to 9.15%.
- Return on average tangible common
equity (non-GAAP) of 25.19% compared to 13.47%.
HTLF reported the following results for the year
ended December 31, 2022 compared to the year ended December 31,
2021:
- Net income
available to common stockholders of $204.1 million compared to
$211.9 million, a decrease of $7.7 million or 4%.
- Earnings per
diluted common share of $4.79 compared to $5.00, a decrease of
$0.21 or 4%.
- Net interest
income of $598.2 million compared to $560.6 million, an increase of
$37.7 million or 7%.
- Return on
average assets of 1.08% compared to 1.19%.
- Return on
average common equity of 11.74% compared to 10.49%.
- Return on
average tangible common equity (non-GAAP) of 18.56% compared to
15.59%.
Commenting on HTLF's 2022 results, Bruce K. Lee,
HTLF’s president and chief executive officer, said, "HTLF delivered
strong fourth quarter and full year results while executing our
strategic plans for driving organic growth, improving customer
experience and consolidating charters. We continue to demonstrate
strong momentum, passing $20 billion in total assets and delivering
a record $726.5 million in total revenue for 2022."
Charter Consolidation
Update
During the fourth quarter of 2022, the charters
of Arizona Bank & Trust and Illinois Bank & Trust were
consolidated into HTLF Bank. Citywide Banks, Premier Valley Bank,
Minnesota Bank & Trust, Arizona Bank & Trust and Illinois
Bank & Trust are now operating as divisions of HTLF Bank. The
remaining six charters are expected to be consolidated by the end
of 2023. Charter consolidation follows a template that retains the
current brands, local leadership and local decision making.
Consolidation restructuring costs are projected
to be $19-$20 million with approximately $10 million of expenses
remaining to be incurred through 2023. Charter consolidation is
designed to eliminate redundancies and improve HTLF’s operating
efficiency and capacity to support ongoing product and service
enhancements, as well as current and future growth. HTLF realized
some operating efficiency and financial benefits in the third and
fourth quarters of 2022 with the completion of five charter
consolidations, and total benefits are estimated to be
approximately $20.0 million annually after the project is
completed.
Effective December 31, 2022, the address of
HTLF's headquarters was changed to Denver, Colorado, which is where
HTLF Bank is headquartered.
Net Interest Income and Net Interest
Margin
Net interest margin, expressed as a percentage
of average earning assets, was 3.61% (3.65% on a fully
tax-equivalent basis, non-GAAP) during the fourth quarter of 2022,
compared to 3.08% (3.12% on a fully tax-equivalent basis, non-GAAP)
during the fourth quarter of 2021.
Total interest income and average earning asset
changes for the fourth quarter of 2022 compared to the fourth
quarter of 2021 were:
- Total interest
income was $204.7 million, which was an increase of $60.7 million
or 42% from $144.0 million and primarily attributable to higher
yields and an increase in average earning assets.
- Total interest
income on a tax-equivalent basis was $206.9 million, which was an
increase of $60.8 million or 42% from $146.0 million.
- Average earning
assets increased $493.9 million or 3% to $18.18 billion compared to
$17.68 billion, which was primarily attributable to loan
growth.
- The average rate on earning assets
increased 124 basis points to 4.52% compared to 3.28%, which was
primarily due to recent increases in market interest rates and a
shift in earning asset mix. Total average securities were 39% of
total average earning assets compared to 44%.
Total interest expense and average interest
bearing liability changes for the fourth quarter of 2022 compared
to the fourth quarter of 2021 were:
- Total interest
expense was $39.5 million, an increase of $32.6 million from $6.8
million, which was attributable to an increase in the average
interest rate paid and an increase in average interest bearing
liabilities.
- The average
interest rate paid on HTLF's interest bearing liabilities increased
to 1.31% compared to 0.27%, which was primarily due to recent
increases in market interest rates.
- Average interest
bearing deposits increased $1.65 billion or 17% to $11.31 billion
from $9.66 billion which was primarily attributable to deposit
growth. Total average interest bearing deposits were 65% of total
average deposits compared to 59%.
- The average
interest rate paid on HTLF's interest bearing deposits increased
100 basis points to 1.13% compared to 0.13%.
- Average borrowings increased $121.4
million to $670.2 million from $548.9 million. The average interest
rate paid on HTLF's borrowings was 4.30% compared to 2.66%.
Net interest income increased for the fourth
quarter of 2022 compared to the fourth quarter of 2021:
- Net interest
income totaled $165.2 million compared to $137.2 million, which was
an increase of $28.0 million or 20%.
- Net interest income on a
tax-equivalent basis (non-GAAP) totaled $167.4 million compared to
$139.2 million, which was an increase of $28.2 million or 20%.
Noninterest Income and Noninterest
Expense
Total noninterest income was $30.0 million
during the fourth quarter of 2022 compared to $32.7 million during
the fourth quarter of 2021, a decrease of $2.8 million or 8%.
Significant changes by noninterest income category for the fourth
quarter of 2022 compared to the fourth quarter of 2021 were:
- Service charges
and fees increased $2.1 million or 14% to $17.4 million from $15.3
million, which was primarily attributable to an increase in credit
card revenue. Credit card revenue increased $1.3 million or 24% to
$6.5 million compared to $5.2 million.
- Net securities
losses totaled $153,000 compared to net securities gains of $1.6
million, which was a decrease of $1.7 million.
- Net gains of sales of loans held
for sale decreased $3.3 million to $888,000 compared to $4.2
million, primarily due to a decrease of loans sold to the secondary
market.
Total noninterest expense for the fourth quarter
of 2022 was $117.2 million compared to $115.4 million for the same
quarter of 2021, which was an increase of $1.8 million or 2%.
Significant changes within the noninterest expense category for the
fourth quarter of 2022 compared to the fourth quarter of 2021
were:
- Salaries and
employee benefits totaled $61.6 million compared to $63.0 million,
which was a decrease of $1.4 million or 2% and included lower
salary expense due to a reduction of full-time equivalent employees
which was partially offset by higher incentive compensation
expense.
- Net losses on
sales/valuation of assets totaled $2.4 million compared to
$214,000, which was an increase of $2.2 million. HTLF recorded
losses primarily associated with franchise optimization activities
in the fourth quarter of 2022.
- Acquisition,
integration and restructuring costs totaled $2.4 million compared
to $2.0 million, an increase of $453,000 or 23% due to the
progression of the charter consolidation project.
- Partnership
investment in tax credit projects increased $698,000 or 27% to $3.2
million compared to $2.5 million. The expense is dependent upon the
number and timing of tax credit projects placed into service.
- Occupancy
expense decreased $377,000 or 5% to $6.9 million compared to $7.3
million, and furniture and equipment decreased $345,000 or 10% to
$3.0 million from $3.4 million. These decreases are primarily
attributable to the reduction in branch locations. Branch locations
totaled 119 at December 31, 2022 compared to 130 at December 31,
2021.
- Other noninterest expenses totaled
$15.4 million compared to $14.6 million, which was an increase of
$801,000 or 5%. Credit card processing expense, which is driven by
volume, totaled $4.1 million compared to $3.3 million, an increase
of $794,000 or 24%.
HTLF's effective tax rate was 18.68% for the
fourth quarter of 2022 compared to 17.16% for the fourth quarter of
2021. The following items impacted HTLF's fourth quarter 2022 and
2021 tax calculations:
- Solar energy tax
credits of $2.5 million in each quarterly calculation.
- Federal
low-income housing tax credits of $263,000 and $135,000.
- New markets tax
credits of $75,000 in each quarterly calculation.
- Historic
rehabilitation tax credits of $842,000 and $272,000.
- Tax-exempt
interest income as a percentage of pre-tax income of 11.80%
compared to 9.86%.
- Tax benefits of $165,000 and
$491,000 related to the release of valuation allowances on deferred
tax assets.
For the years ended December 31, 2022 and 2021,
HTLF's effective tax rate was 20.76% and 20.10%, respectively.
Total Assets, Total Loans and Total
Deposits
Total assets were $20.24 billion at December 31,
2022, an increase of $969.7 million or 5% from $19.27 billion at
year-end 2021. Securities represented 35% and 40% of total assets
at December 31, 2022, and December 31, 2021, respectively.
Total loans held to maturity were $11.43 billion
at December 31, 2022, compared to $10.92 billion at September 30,
2022 and $9.95 billion at December 31, 2021. Excluding total PPP
loans, loans increased $507.3 million or 5% during the fourth
quarter of 2022 and $1.66 billion or 17% since year-end 2021.
Significant changes by loan category at December
31, 2022 compared to September 30, 2022 included:
- Commercial and
business lending, which includes commercial and industrial PPP, and
owner occupied commercial real estate loans, increased $162.6
million or 3% to $5.74 billion at December 31, 2022, compared to
$5.58 billion at September 30, 2022.
- PPP loans
originated in 2020 ("PPP I") loans decreased $423,000 or 23%. PPP
loans originated in 2021 ("PPP II") decreased $2.1 million or
18%.
- Excluding total
PPP loans, commercial and business lending increased $165.0 million
or 3% to $5.73 billion from $5.56 billion.
- Commercial real
estate lending, which includes non-owner occupied commercial real
estate and construction loans, increased $191.5 million or 6% to
$3.41 billion from $3.22 billion.
- Agricultural and
agricultural real estate loans totaled $920.5 million compared to
$781.4 million, an increase of $139.2 million or 18%.
- Consumer loans increased $11.2
million or 2% to $506.7 million from $495.5 million.
Significant changes by loan category at December
31, 2022 compared to December 31, 2021 included:
- Commercial and business lending, which includes commercial and
industrial PPP, and owner occupied commercial real estate loans,
increased $655.4 million or 13% to $5.74 billion at December 31,
2022, compared to $5.09 billion at December 31, 2021.
- PPP I loans decreased $25.7 million or 95%. PPP II loans
decreased $163.2 million or 94%.
- Excluding total PPP loans, commercial and business lending
increased $844.3 million or 17% to $5.73 billion from $4.89
billion.
- Commercial real estate lending, which includes non-owner
occupied commercial real estate and construction loans, increased
$540.3 million or 19% to $3.41 billion from $2.87 billion.
- Agricultural and agricultural real estate loans totaled $920.5
million, an increase of $166.8 million or 22% from $753.8
million.
- Consumer loans increased $87.2 million or 21% to $506.7 million
from $419.5 million.
Total deposits were $17.51 billion as of
December 31, 2022, $17.27 billion as of September 30, 2022 and
$16.42 billion at December 31, 2021. Significant deposit changes by
category at December 31, 2022 compared to September 30, 2022
included:
- Demand deposits
decreased $382.2 million or 6% to $5.70 billion compared to $6.08
billion.
- Savings deposits
decreased $66.1 million or 1% to $9.99 billion from $10.06
billion.
- Time deposits increased $694.2
million or 62% to $1.82 billion from $1.12 billion.
Significant deposit changes by category at
December 31, 2022 compared to December 31, 2021 included:
- Demand deposits
decreased $794.0 million or 12% to $5.70 billion compared to $6.50
billion.
- Savings deposits
increased $1.10 billion or 12% to $9.99 billion from $8.90 billion.
The increase was primarily attributable in an increase of $855.6
million in wholesale funding deposits, which totaled $1.09 billion
at December 31, 2022 compared to $235.0 million at December 31,
2021.
- Time deposits increased $793.3
million or 77% to $1.82 billion from $1.02 billion.
The increase in time deposits for both the
fourth quarter of 2022 and for the year ended December 31, 2022,
was primarily attributable to an increase in wholesale funding time
deposits, which totaled $965.7 million at December 31, 2022,
compared to $150.0 million at September 30, 2022, and $0 at
December 31, 2021.
Provision and Allowance
Provision and Allowance for Credit Losses for
Loans Provision for credit losses for loans for the fourth quarter
of 2022 was $2.1 million, which was an increase of $8.9 million
from $6.8 million of provision benefit recorded in the fourth
quarter of 2021. The provision expense for the fourth quarter of
2022 was impacted by strong quarterly loan growth, net recoveries
of $1.7 million, and healthy current credit performance. Management
utilized a macroeconomic outlook in the estimation of the allowance
for credit losses that anticipates a moderate recession developing
within the next twelve months. The provision benefit recorded in
the fourth quarter of 2021 reflected an improving credit
environment and macroeconomic outlook.
HTLF's allowance for credit losses for loans
totaled $109.5 million at December 31, 2022, compared to $110.1
million at December 31, 2021. The following items have impacted
HTLF's allowance for credit losses for loans for the year ended
December 31, 2022:
- Provision
expense for the year ended December 31, 2022, totaled $10.6
million.
- Net charge offs of $11.2 million
were recorded for the year or 0.11% of average loans.
Provision and Allowance for Credit Losses for
Unfunded Commitments HTLF's allowance for unfunded commitments
totaled $20.2 million and $15.5 million at December 31, 2022 and
December 31, 2021. The following impacted HTLF's allowance for
credit losses for unfunded commitments during 2022:
- Provision
expense for the year ended December 31, 2022, totaled $4.7
million.
- Unfunded commitments increased
$899.5 million or 23% to $4.73 billion at December 31, 2022
compared to $3.83 billion at December 31, 2021.
Total Provision and Allowance for Lending
Related Credit LossesThe total provision expense for lending
related credit losses was $3.4 million for the fourth quarter of
2022 compared to provision benefit of $5.3 million for the fourth
quarter of 2021. The total allowance for lending related credit
losses was $129.7 million at December 31, 2022, which was 1.13% of
total loans as of December 31, 2022, compared to $125.6 million or
1.26% of total loans as of December 31, 2021.
Nonperforming Assets
Nonperforming assets decreased $5.0 million or
7% to $66.9 million, which was 0.33% of total assets at December
31, 2022, compared to $71.9 million or 0.37% of total assets at
December 31, 2021. Nonperforming loans were $58.5 million or 0.51%
of total loans at December 31, 2022, compared to $69.9 million or
0.70% of total loans at December 31, 2020. At December 31, 2022,
loans delinquent 30-89 days were 0.04% of total loans compared to
0.07% of total loans at December 31, 2021.
Non-GAAP Financial Measures
This earnings release contains references to
financial measures which are not defined by generally accepted
accounting principles ("GAAP"). Management believes the non-GAAP
measures are helpful for investors to analyze and evaluate the
company's financial condition and operating results. However, these
non-GAAP measures have inherent limitations and should not be
considered a substitute for operating results determined in
accordance with GAAP. Additionally, because non-GAAP measures are
not standardized, it may not be possible to compare the non-GAAP
measures in this earnings release with other companies' non-GAAP
measures. Reconciliations of each non-GAAP measure to the most
directly comparable GAAP measure may be found in the financial
tables in this earnings release.
Below are the non-GAAP measures included in this earnings
release, management's reason for including each measure and the
method of calculating each measure:
- Annualized net
interest margin, fully tax-equivalent, adjusts net interest income
for the tax-favored status of certain loans and securities.
Management believes this measure enhances the comparability of net
interest income arising from taxable and tax-exempt sources.
- Efficiency
ratio, fully tax equivalent, expresses noninterest expenses as a
percentage of fully tax-equivalent net interest income and
noninterest income. This efficiency ratio is presented on a
tax-equivalent basis which adjusts net interest income and
noninterest expenses for the tax favored status of certain loans,
securities, and tax credit projects. Management believes the
presentation of this non-GAAP measure provides supplemental useful
information for proper understanding of the financial results as it
enhances the comparability of income and expenses arising from
taxable and nontaxable sources and excludes specific items as noted
in reconciliation contained in this earnings release.
- Net interest
income, fully tax equivalent, is net income adjusted for the
tax-favored status of certain loans and securities. Management
believes this measure enhances the comparability of net interest
income arising from taxable and tax-exempt sources.
- Tangible book
value per common share is total common equity less goodwill and
core deposit and customer relationship intangibles, net, divided by
common shares outstanding, net of treasury. This measure is
included as it is considered to be a critical metric to analyze and
evaluate use of equity, financial condition and capital
strength.
- Tangible common
equity ratio is total common equity less goodwill and core deposit
and customer relationship intangibles, net, divided by total assets
less goodwill and core deposit and customer relationship
intangibles, net. This measure is included as it is considered to
be a critical metric to analyze and evaluate financial condition
and capital strength.
- Annualized
return on average tangible common equity is net income excluding
intangible amortization calculated as (1) net income excluding
tax-effected core deposit and customer relationship intangibles
amortization, divided by (2) average common equity less goodwill
and core deposit and customer relationship intangibles, net. This
measure is included as it is considered to be a critical metric to
analyze and evaluate use of equity, financial condition and capital
strength.
- Annualized ratio of core expenses
to average assets adjusts noninterest expenses to exclude specific
items noted in the reconciliation. Management includes this measure
as it is considered to be a critical metric to analyze and evaluate
controllable expenses related to primary business operations.
Conference Call Details
HTLF will host a conference call for
shareholders, analysts and other interested parties at 5:00 p.m.
EDT today. To join via webcast, please visit
https://ir.htlf.com/news-and-events/event-calendar/default.aspx 10
minutes prior to the call. A replay will be available until January
29, 2024, by logging on to www.htlf.com.
About HTLF
Heartland Financial USA, Inc., operating under
the brand name HTLF, is a bank holding company with assets of
$20.24 billion. HTLF has banks serving communities in Arizona,
California, Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri,
Montana, New Mexico, Texas and Wisconsin. HTLF is committed to its
core commercial business, supported by a strong retail operation,
and provides a diversified line of financial services including
treasury management, wealth management, investments and residential
mortgage. Additional information is available at www.htlf.com.
Safe Harbor Statement
This release (including any information
incorporated herein by reference), and future oral and written
statements of the company and its management, may contain
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, with respect to the
business, financial condition, results of operations, plans,
objectives and future performance of HTLF.
Any statements about the company's expectations,
beliefs, plans, objectives, assumptions or future events or
performance are not historical facts and may be forward-looking.
Forward-looking statements may include information about possible
or assumed future results of the company's operations or
performance. These forward-looking statements are generally
identified by the use of the words such as "believe", "expect",
"intent", "anticipate", "plan", "intend", "estimate", "project",
"may", "will", "would", "could", "should", "may", "view",
"opportunity", "potential", or similar or negative expressions of
these words or phrases that are used in this release, and future
oral and written statements of the company and its management.
Although the company may make these statements based on
management’s experience, beliefs, expectations, assumptions and
best estimate of future events, the ability of the company to
predict results or the actual effect or outcomes of plans or
strategies is inherently uncertain, and there may be events or
factors that management has not anticipated. Therefore, the
accuracy and achievement of such forward-looking statements and
estimates are subject to a number of risks, 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 the company
currently believes could have a material effect on its operations
and future prospects, are detailed below and in the risk factors in
HTLF's reports filed with the Securities and Exchange Commission
("SEC"), including the "Risk Factors" section under Item 1A of Part
I of the company’s Annual Report on Form 10-K for the year ended
December 31, 2021, include, among others:
- COVID-19
Pandemic Risks, including risks related to the ongoing COVID-19
pandemic and measures enacted by the U.S. federal and state
governments and adopted by private businesses in response to the
COVID-19 pandemic;
- Economic and
Market Conditions Risks, including risks related to changes in the
U.S. economy in general and in the local economies in which HTLF
conducts its operations and future civil unrest, natural disasters,
pandemics, persistent inflation, supply chain issues, labor
shortages, terrorist threats or acts of war;
- Credit Risks,
including risks of increasing credit losses due to deterioration in
the financial condition of HTLF's borrowers, changes in asset and
collateral values and climate and other borrower industry risks
which may impact the provision for credit losses and net
charge-offs;
- Liquidity and
Interest Rate Risks, including the impact of capital market
conditions, rising interest rates and changes in monetary policy on
our borrowings and net interest income;
- Operational
Risks, including processing, information systems, cybersecurity,
vendor, business interruption, and fraud risks;
- Strategic and
External Risks, including competitive forces impacting our business
and strategic acquisition risks;
- Legal,
Compliance and Reputational Risks, including regulatory and
litigation risks; and
- Risks of Owning Stock in HTLF,
including stock price volatility and dilution as a result of future
equity offerings and acquisitions.
There can be no assurance that other factors not
currently anticipated by HTLF will not materially and adversely
affect the company’s business, financial condition and results of
operations. In addition, many of these risks and uncertainties are
currently amplified by and may continue to be amplified by the
COVID-19 pandemic and the impact of varying governmental responses
that affect the company’s customers and the economies where they
operate. Additionally, all statements in this release, including
forward-looking statements speak only as of the date they are made.
The company does not undertake and specifically disclaims any
obligation to publicly release the results of any revisions which
may be made to or correct or update any forward-looking statement
to reflect events or circumstances after the date of such
statements or to reflect the occurrence of anticipated or
unanticipated events or to otherwise update any statement in light
of new information or future events. Further information concerning
HTLF and its business, including additional factors that could
materially affect the company’s financial results, is included in
the company’s filings with the SEC.
-FINANCIAL TABLES FOLLOW-
HEARTLAND
FINANCIAL USA, INC. |
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
DOLLARS
IN THOUSANDS, EXCEPT PER SHARE DATA |
|
For the Quarter EndedDecember
31, |
|
For the Year EndedDecember
31, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Interest Income |
|
|
|
|
|
|
|
Interest and fees on
loans |
$ |
143,970 |
|
|
$ |
107,721 |
|
|
$ |
477,970 |
|
|
$ |
444,137 |
|
Interest on securities: |
|
|
|
|
|
|
|
Taxable |
|
53,178 |
|
|
|
30,637 |
|
|
|
169,544 |
|
|
|
125,010 |
|
Nontaxable |
|
6,132 |
|
|
|
5,595 |
|
|
|
24,006 |
|
|
|
19,268 |
|
Interest on federal funds
sold |
|
11 |
|
|
|
— |
|
|
|
11 |
|
|
|
1 |
|
Interest on deposits with
other banks and short-term investments |
|
1,410 |
|
|
|
86 |
|
|
|
3,125 |
|
|
|
344 |
|
Total Interest
Income |
|
204,701 |
|
|
|
144,039 |
|
|
|
674,656 |
|
|
|
588,760 |
|
Interest
Expense |
|
|
|
|
|
|
|
Interest on deposits |
|
32,215 |
|
|
|
3,168 |
|
|
|
56,880 |
|
|
|
14,797 |
|
Interest on short-term
borrowings |
|
2,223 |
|
|
|
123 |
|
|
|
2,717 |
|
|
|
471 |
|
Interest on other
borrowings |
|
5,043 |
|
|
|
3,554 |
|
|
|
16,823 |
|
|
|
12,932 |
|
Total Interest
Expense |
|
39,481 |
|
|
|
6,845 |
|
|
|
76,420 |
|
|
|
28,200 |
|
Net Interest
Income |
|
165,220 |
|
|
|
137,194 |
|
|
|
598,236 |
|
|
|
560,560 |
|
Provision (benefit) for credit
losses |
|
3,387 |
|
|
|
(5,313 |
) |
|
|
15,370 |
|
|
|
(17,575 |
) |
Net Interest Income
After Provision for Credit Losses |
|
161,833 |
|
|
|
142,507 |
|
|
|
582,866 |
|
|
|
578,135 |
|
Noninterest
Income |
|
|
|
|
|
|
|
Service charges and fees |
|
17,432 |
|
|
|
15,349 |
|
|
|
68,031 |
|
|
|
59,703 |
|
Loan servicing income |
|
790 |
|
|
|
781 |
|
|
|
2,741 |
|
|
|
3,276 |
|
Trust fees |
|
5,440 |
|
|
|
6,380 |
|
|
|
22,570 |
|
|
|
24,417 |
|
Brokerage and insurance
commissions |
|
629 |
|
|
|
962 |
|
|
|
2,986 |
|
|
|
3,546 |
|
Securities gains (losses),
net |
|
(153 |
) |
|
|
1,563 |
|
|
|
(425 |
) |
|
|
5,910 |
|
Unrealized gain (loss) on
equity securities, net |
|
(7 |
) |
|
|
(27 |
) |
|
|
(622 |
) |
|
|
58 |
|
Net gains on sale of loans
held for sale |
|
888 |
|
|
|
4,151 |
|
|
|
9,032 |
|
|
|
20,605 |
|
Valuation adjustment on
servicing rights |
|
— |
|
|
|
502 |
|
|
|
1,658 |
|
|
|
1,088 |
|
Income on bank owned life
insurance |
|
600 |
|
|
|
1,056 |
|
|
|
2,341 |
|
|
|
3,762 |
|
Other noninterest income |
|
4,356 |
|
|
|
2,013 |
|
|
|
19,952 |
|
|
|
6,570 |
|
Total Noninterest
Income |
|
29,975 |
|
|
|
32,730 |
|
|
|
128,264 |
|
|
|
128,935 |
|
Noninterest
Expense |
|
|
|
|
|
|
|
Salaries and employee
benefits |
|
61,611 |
|
|
|
63,031 |
|
|
|
254,478 |
|
|
|
240,114 |
|
Occupancy |
|
6,905 |
|
|
|
7,282 |
|
|
|
28,155 |
|
|
|
29,965 |
|
Furniture and equipment |
|
3,019 |
|
|
|
3,364 |
|
|
|
12,499 |
|
|
|
13,323 |
|
Professional fees |
|
18,186 |
|
|
|
17,631 |
|
|
|
65,606 |
|
|
|
64,600 |
|
Advertising |
|
1,829 |
|
|
|
2,218 |
|
|
|
6,221 |
|
|
|
7,257 |
|
Core deposit and customer
relationship intangibles amortization |
|
1,841 |
|
|
|
2,169 |
|
|
|
7,834 |
|
|
|
9,395 |
|
Other real estate and loan
collection expenses, net |
|
373 |
|
|
|
363 |
|
|
|
950 |
|
|
|
990 |
|
(Gain) loss on
sales/valuations of assets, net |
|
2,388 |
|
|
|
214 |
|
|
|
(1,047 |
) |
|
|
588 |
|
Acquisition, integration and
restructuring costs |
|
2,442 |
|
|
|
1,989 |
|
|
|
7,586 |
|
|
|
5,331 |
|
Partnership investment in tax
credit projects |
|
3,247 |
|
|
|
2,549 |
|
|
|
5,040 |
|
|
|
6,303 |
|
Other noninterest
expenses |
|
15,377 |
|
|
|
14,576 |
|
|
|
56,055 |
|
|
|
53,946 |
|
Total Noninterest
Expense |
|
117,218 |
|
|
|
115,386 |
|
|
|
443,377 |
|
|
|
431,812 |
|
Income Before Income
Taxes |
|
74,590 |
|
|
|
59,851 |
|
|
|
267,753 |
|
|
|
275,258 |
|
Income taxes |
|
13,936 |
|
|
|
10,271 |
|
|
|
55,573 |
|
|
|
55,335 |
|
Net
Income |
|
60,654 |
|
|
|
49,580 |
|
|
|
212,180 |
|
|
|
219,923 |
|
Preferred dividends |
|
(2,012 |
) |
|
|
(2,012 |
) |
|
|
(8,050 |
) |
|
|
(8,050 |
) |
Net Income Available
to Common Stockholders |
$ |
58,642 |
|
|
$ |
47,568 |
|
|
$ |
204,130 |
|
|
$ |
211,873 |
|
Earnings per common
share-diluted |
$ |
1.37 |
|
|
$ |
1.12 |
|
|
$ |
4.79 |
|
|
$ |
5.00 |
|
Weighted average
shares outstanding-diluted |
|
42,699,752 |
|
|
|
42,479,442 |
|
|
|
42,630,703 |
|
|
|
42,410,611 |
|
HEARTLAND
FINANCIAL USA, INC. |
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
DOLLARS
IN THOUSANDS, EXCEPT PER SHARE DATA |
|
For the Quarter Ended |
|
12/31/2022 |
|
9/30/2022 |
|
6/30/2022 |
|
3/31/2022 |
|
12/31/2021 |
Interest Income |
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
$ |
143,970 |
|
|
$ |
122,913 |
|
|
$ |
108,718 |
|
|
$ |
102,369 |
|
|
$ |
107,721 |
|
Interest on securities: |
|
|
|
|
|
|
|
|
|
Taxable |
|
53,178 |
|
|
|
45,648 |
|
|
|
38,098 |
|
|
|
32,620 |
|
|
|
30,637 |
|
Nontaxable |
|
6,132 |
|
|
|
6,164 |
|
|
|
5,508 |
|
|
|
6,202 |
|
|
|
5,595 |
|
Interest on federal funds
sold |
|
11 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Interest on deposits with
other banks and short-term investments |
|
1,410 |
|
|
|
1,081 |
|
|
|
563 |
|
|
|
71 |
|
|
|
86 |
|
Total Interest
Income |
|
204,701 |
|
|
|
175,806 |
|
|
|
152,887 |
|
|
|
141,262 |
|
|
|
144,039 |
|
Interest
Expense |
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
32,215 |
|
|
|
15,158 |
|
|
|
6,530 |
|
|
|
2,977 |
|
|
|
3,168 |
|
Interest on short-term
borrowings |
|
2,223 |
|
|
|
360 |
|
|
|
88 |
|
|
|
46 |
|
|
|
123 |
|
Interest on other
borrowings |
|
5,043 |
|
|
|
4,412 |
|
|
|
3,808 |
|
|
|
3,560 |
|
|
|
3,554 |
|
Total Interest
Expense |
|
39,481 |
|
|
|
19,930 |
|
|
|
10,426 |
|
|
|
6,583 |
|
|
|
6,845 |
|
Net Interest
Income |
|
165,220 |
|
|
|
155,876 |
|
|
|
142,461 |
|
|
|
134,679 |
|
|
|
137,194 |
|
Provision (benefit) for credit
losses |
|
3,387 |
|
|
|
5,492 |
|
|
|
3,246 |
|
|
|
3,245 |
|
|
|
(5,313 |
) |
Net Interest Income
After Provision for Credit Losses |
|
161,833 |
|
|
|
150,384 |
|
|
|
139,215 |
|
|
|
131,434 |
|
|
|
142,507 |
|
Noninterest
Income |
|
|
|
|
|
|
|
|
|
Service charges and fees |
|
17,432 |
|
|
|
17,282 |
|
|
|
18,066 |
|
|
|
15,251 |
|
|
|
15,349 |
|
Loan servicing income |
|
790 |
|
|
|
831 |
|
|
|
834 |
|
|
|
286 |
|
|
|
781 |
|
Trust fees |
|
5,440 |
|
|
|
5,372 |
|
|
|
5,679 |
|
|
|
6,079 |
|
|
|
6,380 |
|
Brokerage and insurance
commissions |
|
629 |
|
|
|
649 |
|
|
|
839 |
|
|
|
869 |
|
|
|
962 |
|
Securities gains (losses),
net |
|
(153 |
) |
|
|
(1,055 |
) |
|
|
(2,089 |
) |
|
|
2,872 |
|
|
|
1,563 |
|
Unrealized gain (loss) on
equity securities, net |
|
(7 |
) |
|
|
(211 |
) |
|
|
(121 |
) |
|
|
(283 |
) |
|
|
(27 |
) |
Net gains on sale of loans
held for sale |
|
888 |
|
|
|
1,832 |
|
|
|
2,901 |
|
|
|
3,411 |
|
|
|
4,151 |
|
Valuation adjustment on
servicing rights |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,658 |
|
|
|
502 |
|
Income on bank owned life
insurance |
|
600 |
|
|
|
694 |
|
|
|
523 |
|
|
|
524 |
|
|
|
1,056 |
|
Other noninterest income |
|
4,356 |
|
|
|
3,787 |
|
|
|
7,907 |
|
|
|
3,902 |
|
|
|
2,013 |
|
Total Noninterest
Income |
|
29,975 |
|
|
|
29,181 |
|
|
|
34,539 |
|
|
|
34,569 |
|
|
|
32,730 |
|
Noninterest
Expense |
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits |
|
61,611 |
|
|
|
62,661 |
|
|
|
64,032 |
|
|
|
66,174 |
|
|
|
63,031 |
|
Occupancy |
|
6,905 |
|
|
|
6,794 |
|
|
|
7,094 |
|
|
|
7,362 |
|
|
|
7,282 |
|
Furniture and equipment |
|
3,019 |
|
|
|
2,928 |
|
|
|
3,033 |
|
|
|
3,519 |
|
|
|
3,364 |
|
Professional fees |
|
18,186 |
|
|
|
16,277 |
|
|
|
15,987 |
|
|
|
15,156 |
|
|
|
17,631 |
|
Advertising |
|
1,829 |
|
|
|
1,554 |
|
|
|
1,283 |
|
|
|
1,555 |
|
|
|
2,218 |
|
Core deposit and customer
relationship intangibles amortization |
|
1,841 |
|
|
|
1,856 |
|
|
|
2,083 |
|
|
|
2,054 |
|
|
|
2,169 |
|
Other real estate and loan
collection expenses, net |
|
373 |
|
|
|
304 |
|
|
|
78 |
|
|
|
195 |
|
|
|
363 |
|
(Gain) loss on
sales/valuations of assets, net |
|
2,388 |
|
|
|
(251 |
) |
|
|
(3,230 |
) |
|
|
46 |
|
|
|
214 |
|
Acquisition, integration and
restructuring costs |
|
2,442 |
|
|
|
2,156 |
|
|
|
2,412 |
|
|
|
576 |
|
|
|
1,989 |
|
Partnership investment in tax
credit projects |
|
3,247 |
|
|
|
979 |
|
|
|
737 |
|
|
|
77 |
|
|
|
2,549 |
|
Other noninterest
expenses |
|
15,377 |
|
|
|
13,625 |
|
|
|
12,970 |
|
|
|
14,083 |
|
|
|
14,576 |
|
Total Noninterest
Expense |
|
117,218 |
|
|
|
108,883 |
|
|
|
106,479 |
|
|
|
110,797 |
|
|
|
115,386 |
|
Income Before Income
Taxes |
|
74,590 |
|
|
|
70,682 |
|
|
|
67,275 |
|
|
|
55,206 |
|
|
|
59,851 |
|
Income taxes |
|
13,936 |
|
|
|
14,118 |
|
|
|
15,402 |
|
|
|
12,117 |
|
|
|
10,271 |
|
Net
Income |
|
60,654 |
|
|
|
56,564 |
|
|
|
51,873 |
|
|
|
43,089 |
|
|
|
49,580 |
|
Preferred dividends |
|
(2,012 |
) |
|
|
(2,013 |
) |
|
|
(2,012 |
) |
|
|
(2,013 |
) |
|
|
(2,012 |
) |
Net Income Available
to Common Stockholders |
$ |
58,642 |
|
|
$ |
54,551 |
|
|
$ |
49,861 |
|
|
$ |
41,076 |
|
|
$ |
47,568 |
|
Earnings per common
share-diluted |
$ |
1.37 |
|
|
$ |
1.28 |
|
|
$ |
1.17 |
|
|
$ |
0.97 |
|
|
$ |
1.12 |
|
Weighted average
shares outstanding-diluted |
|
42,699,752 |
|
|
|
42,643,940 |
|
|
|
42,565,391 |
|
|
|
42,540,953 |
|
|
|
42,479,442 |
|
HEARTLAND
FINANCIAL USA, INC. |
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
DOLLARS
IN THOUSANDS, EXCEPT PER SHARE DATA |
|
As of |
|
12/31/2022 |
|
9/30/2022 |
|
6/30/2022 |
|
3/31/2022 |
|
12/31/2021 |
Assets |
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
309,045 |
|
|
$ |
250,394 |
|
|
$ |
221,077 |
|
|
$ |
198,559 |
|
|
$ |
163,895 |
|
Interest bearing deposits with
other banks and other short-term investments |
|
54,042 |
|
|
|
149,466 |
|
|
|
163,717 |
|
|
|
406,343 |
|
|
|
271,704 |
|
Cash and cash equivalents |
|
363,087 |
|
|
|
399,860 |
|
|
|
384,794 |
|
|
|
604,902 |
|
|
|
435,599 |
|
Time deposits in other
financial institutions |
|
1,740 |
|
|
|
1,740 |
|
|
|
1,855 |
|
|
|
2,894 |
|
|
|
2,894 |
|
Securities: |
|
|
|
|
|
|
|
|
|
Carried at fair value |
|
6,147,144 |
|
|
|
6,060,331 |
|
|
|
7,106,218 |
|
|
|
7,025,243 |
|
|
|
7,530,374 |
|
Held to maturity, at cost |
|
829,403 |
|
|
|
830,247 |
|
|
|
81,939 |
|
|
|
81,785 |
|
|
|
84,709 |
|
Other investments, at cost |
|
74,567 |
|
|
|
80,286 |
|
|
|
85,899 |
|
|
|
82,751 |
|
|
|
82,567 |
|
Loans held for sale |
|
5,277 |
|
|
|
9,570 |
|
|
|
18,803 |
|
|
|
22,685 |
|
|
|
21,640 |
|
Loans: |
|
|
|
|
|
|
|
|
|
Held to maturity |
|
11,428,352 |
|
|
|
10,923,532 |
|
|
|
10,678,218 |
|
|
|
10,177,385 |
|
|
|
9,954,572 |
|
Allowance for credit losses |
|
(109,483 |
) |
|
|
(105,715 |
) |
|
|
(101,353 |
) |
|
|
(100,522 |
) |
|
|
(110,088 |
) |
Loans, net |
|
11,318,869 |
|
|
|
10,817,817 |
|
|
|
10,576,865 |
|
|
|
10,076,863 |
|
|
|
9,844,484 |
|
Premises, furniture and
equipment, net |
|
197,330 |
|
|
|
203,585 |
|
|
|
206,818 |
|
|
|
213,752 |
|
|
|
215,827 |
|
Goodwill |
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
Core deposit and customer
relationship intangibles, net |
|
25,154 |
|
|
|
26,995 |
|
|
|
28,851 |
|
|
|
30,934 |
|
|
|
32,988 |
|
Servicing rights, net |
|
7,840 |
|
|
|
8,379 |
|
|
|
8,288 |
|
|
|
8,102 |
|
|
|
6,890 |
|
Cash surrender value on life
insurance |
|
193,403 |
|
|
|
193,184 |
|
|
|
192,474 |
|
|
|
192,267 |
|
|
|
191,722 |
|
Other real estate, net |
|
8,401 |
|
|
|
8,030 |
|
|
|
4,528 |
|
|
|
1,422 |
|
|
|
1,927 |
|
Other assets |
|
496,008 |
|
|
|
466,921 |
|
|
|
385,062 |
|
|
|
311,274 |
|
|
|
246,923 |
|
Total
Assets |
$ |
20,244,228 |
|
|
$ |
19,682,950 |
|
|
$ |
19,658,399 |
|
|
$ |
19,230,879 |
|
|
$ |
19,274,549 |
|
Liabilities and
Equity |
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
Demand |
$ |
5,701,340 |
|
|
$ |
6,083,563 |
|
|
$ |
6,087,304 |
|
|
$ |
6,376,249 |
|
|
$ |
6,495,326 |
|
Savings |
|
9,994,391 |
|
|
|
10,060,523 |
|
|
|
10,059,678 |
|
|
|
9,236,427 |
|
|
|
8,897,909 |
|
Time |
|
1,817,278 |
|
|
|
1,123,035 |
|
|
|
1,078,568 |
|
|
|
1,054,008 |
|
|
|
1,024,020 |
|
Total deposits |
|
17,513,009 |
|
|
|
17,267,121 |
|
|
|
17,225,550 |
|
|
|
16,666,684 |
|
|
|
16,417,255 |
|
Short-term borrowings |
|
376,117 |
|
|
|
147,000 |
|
|
|
97,749 |
|
|
|
107,372 |
|
|
|
131,597 |
|
Other borrowings |
|
371,753 |
|
|
|
371,446 |
|
|
|
372,538 |
|
|
|
372,290 |
|
|
|
372,072 |
|
Accrued expenses and other
liabilities |
|
248,294 |
|
|
|
241,425 |
|
|
|
188,494 |
|
|
|
152,676 |
|
|
|
171,447 |
|
Total
Liabilities |
|
18,509,173 |
|
|
|
18,026,992 |
|
|
|
17,884,331 |
|
|
|
17,299,022 |
|
|
|
17,092,371 |
|
Stockholders'
Equity |
|
|
|
|
|
|
|
|
|
Preferred equity |
|
110,705 |
|
|
|
110,705 |
|
|
|
110,705 |
|
|
|
110,705 |
|
|
|
110,705 |
|
Common stock |
|
42,467 |
|
|
|
42,444 |
|
|
|
42,439 |
|
|
|
42,370 |
|
|
|
42,275 |
|
Capital surplus |
|
1,080,964 |
|
|
|
1,079,277 |
|
|
|
1,076,766 |
|
|
|
1,073,048 |
|
|
|
1,071,956 |
|
Retained earnings |
|
1,120,925 |
|
|
|
1,074,168 |
|
|
|
1,031,076 |
|
|
|
992,655 |
|
|
|
962,994 |
|
Accumulated other
comprehensive income/(loss) |
|
(620,006 |
) |
|
|
(650,636 |
) |
|
|
(486,918 |
) |
|
|
(286,921 |
) |
|
|
(5,752 |
) |
Total
Equity |
|
1,735,055 |
|
|
|
1,655,958 |
|
|
|
1,774,068 |
|
|
|
1,931,857 |
|
|
|
2,182,178 |
|
Total Liabilities and
Equity |
$ |
20,244,228 |
|
|
$ |
19,682,950 |
|
|
$ |
19,658,399 |
|
|
$ |
19,230,879 |
|
|
$ |
19,274,549 |
|
HEARTLAND
FINANCIAL USA, INC. |
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA |
|
For the Quarter Ended |
|
12/31/2022 |
|
9/30/2022 |
|
6/30/2022 |
|
3/31/2022 |
|
12/31/2021 |
Average Balances |
|
|
|
|
|
|
|
|
|
Assets |
$ |
19,913,849 |
|
|
$ |
19,775,341 |
|
|
$ |
19,559,091 |
|
|
$ |
19,229,872 |
|
|
$ |
19,151,691 |
|
Loans, net of unearned |
|
11,117,513 |
|
|
|
10,783,135 |
|
|
|
10,477,368 |
|
|
|
10,043,594 |
|
|
|
9,886,027 |
|
Deposits |
|
17,319,218 |
|
|
|
17,282,289 |
|
|
|
17,044,479 |
|
|
|
16,459,378 |
|
|
|
16,265,476 |
|
Earning assets |
|
18,175,838 |
|
|
|
18,157,795 |
|
|
|
17,987,734 |
|
|
|
17,757,067 |
|
|
|
17,681,917 |
|
Interest bearing
liabilities |
|
11,980,032 |
|
|
|
11,723,026 |
|
|
|
11,575,319 |
|
|
|
10,453,400 |
|
|
|
10,207,255 |
|
Common equity |
|
1,548,739 |
|
|
|
1,674,306 |
|
|
|
1,731,393 |
|
|
|
2,003,424 |
|
|
|
2,061,973 |
|
Total stockholders'
equity |
|
1,659,444 |
|
|
|
1,785,011 |
|
|
|
1,842,098 |
|
|
|
2,114,129 |
|
|
|
2,172,678 |
|
Tangible common equity
(non-GAAP)(1) |
|
946,688 |
|
|
|
1,070,399 |
|
|
|
1,125,543 |
|
|
|
1,395,488 |
|
|
|
1,451,950 |
|
|
|
|
|
|
|
|
|
|
|
Key Performance
Ratios |
|
|
|
|
|
|
|
|
|
Annualized return on average
assets |
|
1.21 |
% |
|
|
1.13 |
% |
|
|
1.06 |
% |
|
|
0.91 |
% |
|
|
1.03 |
% |
Annualized return on average
common equity (GAAP) |
|
15.02 |
|
|
|
12.93 |
|
|
|
11.55 |
|
|
|
8.32 |
|
|
|
9.15 |
|
Annualized return on average tangible common equity
(non-GAAP)(1) |
|
25.19 |
|
|
|
20.76 |
|
|
|
18.35 |
|
|
|
12.41 |
|
|
|
13.47 |
|
Annualized ratio of net
charge-offs (recoveries) to average loans |
|
(0.06 |
) |
|
|
0.00 |
|
|
|
0.03 |
|
|
|
0.49 |
|
|
|
0.03 |
|
Annualized net interest margin
(GAAP) |
|
3.61 |
|
|
|
3.41 |
|
|
|
3.18 |
|
|
|
3.08 |
|
|
|
3.08 |
|
Annualized net interest
margin, fully tax-equivalent (non-GAAP)(1) |
|
3.65 |
|
|
|
3.45 |
|
|
|
3.22 |
|
|
|
3.12 |
|
|
|
3.12 |
|
Efficiency ratio, fully
tax-equivalent (non-GAAP)(1) |
|
54.33 |
|
|
|
55.26 |
|
|
|
57.66 |
|
|
|
64.65 |
|
|
|
63.86 |
|
Annualized ratio of total
noninterest expenses to average assets (GAAP) |
|
2.34 |
|
|
|
2.18 |
|
|
|
2.18 |
|
|
|
2.34 |
|
|
|
2.39 |
|
Annualized ratio of core
expenses to average assets (non-GAAP)(1) |
|
2.14 |
|
|
|
2.09 |
|
|
|
2.14 |
|
|
|
2.28 |
|
|
|
2.25 |
|
|
For the Quarter EndedDecember
31, |
|
For the Year EndedDecember
31, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Average Balances |
|
|
|
|
|
|
|
Assets |
$ |
19,913,849 |
|
|
$ |
19,151,691 |
|
|
$ |
19,621,839 |
|
|
$ |
18,508,273 |
|
Loans, net of unearned |
|
11,117,513 |
|
|
|
9,886,027 |
|
|
|
10,608,831 |
|
|
|
9,957,290 |
|
Deposits |
|
17,319,218 |
|
|
|
16,265,476 |
|
|
|
17,029,398 |
|
|
|
15,679,773 |
|
Earning assets |
|
18,175,838 |
|
|
|
17,681,917 |
|
|
|
18,021,134 |
|
|
|
17,025,088 |
|
Interest bearing
liabilities |
|
11,980,032 |
|
|
|
10,207,255 |
|
|
|
11,437,921 |
|
|
|
9,969,820 |
|
Common equity |
|
1,548,739 |
|
|
|
2,061,973 |
|
|
|
1,738,041 |
|
|
|
2,020,200 |
|
Total stockholders'
equity |
|
1,659,444 |
|
|
|
2,172,678 |
|
|
|
1,848,746 |
|
|
|
2,130,905 |
|
Tangible common equity
(non-GAAP)(1) |
|
946,688 |
|
|
|
1,451,950 |
|
|
|
1,133,124 |
|
|
|
1,406,641 |
|
|
|
|
|
|
|
|
|
Key Performance
Ratios |
|
|
|
|
|
|
|
Annualized return on average
assets |
|
1.21 |
% |
|
|
1.03 |
% |
|
|
1.08 |
% |
|
|
1.19 |
% |
Annualized return on average
common equity (GAAP) |
|
15.02 |
|
|
|
9.15 |
|
|
|
11.74 |
|
|
|
10.49 |
|
Annualized return on average
tangible common equity (non-GAAP)(1) |
|
25.19 |
|
|
|
13.47 |
|
|
|
18.56 |
|
|
|
15.59 |
|
Annualized ratio of net
charge-offs (recoveries) to average loans |
|
(0.06 |
) |
|
|
0.03 |
|
|
|
0.11 |
|
|
|
0.04 |
|
Annualized net interest margin
(GAAP) |
|
3.61 |
|
|
|
3.08 |
|
|
|
3.32 |
|
|
|
3.29 |
|
Annualized net interest
margin, fully tax-equivalent (non-GAAP)(1) |
|
3.65 |
|
|
|
3.12 |
|
|
|
3.37 |
|
|
|
3.33 |
|
Efficiency ratio, fully
tax-equivalent(1) |
|
54.33 |
|
|
|
63.86 |
|
|
|
57.74 |
|
|
|
59.48 |
|
Annualized ratio of total
noninterest expenses to average assets (GAAP) |
|
2.34 |
|
|
|
2.39 |
|
|
|
2.26 |
|
|
|
2.33 |
|
Annualized ratio of core
expenses to average assets (non-GAAP)(1) |
|
2.14 |
|
|
|
2.25 |
|
|
|
2.16 |
|
|
|
2.22 |
|
|
|
|
|
|
|
|
|
(1) Refer to "Non-GAAP Measures" in this earnings release for
additional information on the usage and presentation of these
non-GAAP measures, and refer to these financial tables for the
reconciliations to the most directly comparable GAAP measures. |
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 |
|
12/31/2022 |
|
9/30/2022 |
|
6/30/2022 |
|
3/31/2022 |
|
12/31/2021 |
Common Share Data |
|
|
|
|
|
|
|
|
|
Book value per common share |
$ |
38.25 |
|
|
$ |
36.41 |
|
|
$ |
39.19 |
|
|
$ |
42.98 |
|
|
$ |
49.00 |
|
Tangible book value per common
share (non-GAAP)(1) |
$ |
24.09 |
|
|
$ |
22.20 |
|
|
$ |
24.94 |
|
|
$ |
28.66 |
|
|
$ |
34.59 |
|
ASC 320 effect on book value
per common share |
$ |
(14.58 |
) |
|
$ |
(15.31 |
) |
|
$ |
(11.43 |
) |
|
$ |
(6.74 |
) |
|
$ |
(0.10 |
) |
Common shares outstanding, net
of treasury stock |
|
42,467,394 |
|
|
|
42,444,106 |
|
|
|
42,439,439 |
|
|
|
42,369,908 |
|
|
|
42,275,264 |
|
Tangible common equity ratio
(non-GAAP)(1) |
|
5.21 |
% |
|
|
4.94 |
% |
|
|
5.56 |
% |
|
|
6.52 |
% |
|
|
7.84 |
% |
|
|
|
|
|
|
|
|
|
|
Other Selected Trend
Information |
|
|
|
|
|
|
|
|
|
Effective tax rate |
|
18.68 |
% |
|
|
19.97 |
% |
|
|
22.89 |
% |
|
|
21.95 |
% |
|
|
17.16 |
% |
Full time equivalent
employees |
|
2,002 |
|
|
|
2,020 |
|
|
|
2,087 |
|
|
|
2,208 |
|
|
|
2,249 |
|
|
|
|
|
|
|
|
|
|
|
Loans Held to
Maturity |
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
3,464,414 |
|
|
$ |
3,278,703 |
|
|
$ |
3,059,519 |
|
|
$ |
2,814,513 |
|
|
$ |
2,645,085 |
|
Paycheck Protection Program
("PPP") |
|
11,025 |
|
|
|
13,506 |
|
|
|
23,031 |
|
|
|
74,065 |
|
|
|
199,883 |
|
Owner occupied commercial real
estate |
|
2,265,307 |
|
|
|
2,285,973 |
|
|
|
2,282,833 |
|
|
|
2,266,076 |
|
|
|
2,240,334 |
|
Commercial and business lending |
|
5,740,746 |
|
|
|
5,578,182 |
|
|
|
5,365,383 |
|
|
|
5,154,654 |
|
|
|
5,085,302 |
|
Non-owner occupied commercial
real estate |
|
2,330,940 |
|
|
|
2,219,542 |
|
|
|
2,321,718 |
|
|
|
2,161,761 |
|
|
|
2,010,591 |
|
Real estate construction |
|
1,076,082 |
|
|
|
996,017 |
|
|
|
845,045 |
|
|
|
842,483 |
|
|
|
856,119 |
|
Commercial real estate lending |
|
3,407,022 |
|
|
|
3,215,559 |
|
|
|
3,166,763 |
|
|
|
3,004,244 |
|
|
|
2,866,710 |
|
Total commercial lending |
|
9,147,768 |
|
|
|
8,793,741 |
|
|
|
8,532,146 |
|
|
|
8,158,898 |
|
|
|
7,952,012 |
|
Agricultural and agricultural
real estate |
|
920,510 |
|
|
|
781,354 |
|
|
|
836,703 |
|
|
|
766,443 |
|
|
|
753,753 |
|
Residential mortgage |
|
853,361 |
|
|
|
852,928 |
|
|
|
845,270 |
|
|
|
825,242 |
|
|
|
829,283 |
|
Consumer |
|
506,713 |
|
|
|
495,509 |
|
|
|
464,099 |
|
|
|
426,802 |
|
|
|
419,524 |
|
Total loans held to
maturity |
$ |
11,428,352 |
|
|
$ |
10,923,532 |
|
|
$ |
10,678,218 |
|
|
$ |
10,177,385 |
|
|
$ |
9,954,572 |
|
|
|
|
|
|
|
|
|
|
|
Total unfunded loan
commitments |
$ |
4,729,677 |
|
|
$ |
4,664,379 |
|
|
$ |
4,458,874 |
|
|
$ |
4,130,316 |
|
|
$ |
3,830,219 |
|
|
|
|
|
|
|
|
|
|
|
(1) Refer to "Non-GAAP Measures" in this earnings release for
additional information on the usage and presentation of these
non-GAAP measures, and refer to these financial tables for the
reconciliations to the most directly comparable GAAP measures. |
HEARTLAND
FINANCIAL USA, INC. |
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
DOLLARS
IN THOUSANDS, EXCEPT PER SHARE DATA |
|
As of and for the Quarter Ended |
|
12/31/2022 |
|
9/30/2022 |
|
6/30/2022 |
|
3/31/2022 |
|
12/31/2021 |
Allowance for Credit Losses-Loans |
|
|
|
|
|
|
|
|
|
Balance, beginning of period |
$ |
105,715 |
|
|
$ |
101,353 |
|
|
$ |
100,522 |
|
|
$ |
110,088 |
|
|
$ |
117,533 |
|
Provision (benefit) for credit
losses |
|
2,075 |
|
|
|
4,388 |
|
|
|
1,545 |
|
|
|
2,628 |
|
|
|
(6,808 |
) |
Charge-offs |
|
(2,668 |
) |
|
|
(938 |
) |
|
|
(1,473 |
) |
|
|
(13,217 |
) |
|
|
(1,953 |
) |
Recoveries |
|
4,361 |
|
|
|
912 |
|
|
|
759 |
|
|
|
1,023 |
|
|
|
1,316 |
|
Balance, end of
period |
$ |
109,483 |
|
|
$ |
105,715 |
|
|
$ |
101,353 |
|
|
$ |
100,522 |
|
|
$ |
110,088 |
|
|
|
|
|
|
|
|
|
|
|
Allowance for Unfunded
Commitments |
|
|
|
|
|
|
|
|
|
Balance, beginning of
period |
$ |
18,884 |
|
|
$ |
17,780 |
|
|
$ |
16,079 |
|
|
$ |
15,462 |
|
|
$ |
13,967 |
|
Provision for credit
losses |
|
1,312 |
|
|
|
1,104 |
|
|
|
1,701 |
|
|
|
617 |
|
|
|
1,495 |
|
Balance, end of
period |
$ |
20,196 |
|
|
$ |
18,884 |
|
|
$ |
17,780 |
|
|
$ |
16,079 |
|
|
$ |
15,462 |
|
|
|
|
|
|
|
|
|
|
|
Allowance for lending
related credit losses |
$ |
129,679 |
|
|
$ |
124,599 |
|
|
$ |
119,133 |
|
|
$ |
116,601 |
|
|
$ |
125,550 |
|
|
|
|
|
|
|
|
|
|
|
Provision for Credit
Losses |
|
|
|
|
|
|
|
|
|
Provision (benefit) for credit
losses-loans |
$ |
2,075 |
|
|
$ |
4,388 |
|
|
$ |
1,545 |
|
|
$ |
2,628 |
|
|
$ |
(6,808 |
) |
Provision for credit
losses-unfunded commitments |
|
1,312 |
|
|
|
1,104 |
|
|
|
1,701 |
|
|
|
617 |
|
|
|
1,495 |
|
Total provision
(benefit) for credit losses |
$ |
3,387 |
|
|
$ |
5,492 |
|
|
$ |
3,246 |
|
|
$ |
3,245 |
|
|
$ |
(5,313 |
) |
|
|
|
|
|
|
|
|
|
|
Asset
Quality |
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
$ |
58,231 |
|
|
$ |
64,560 |
|
|
$ |
62,909 |
|
|
$ |
64,174 |
|
|
$ |
69,369 |
|
Loans past due ninety days or
more |
|
273 |
|
|
|
678 |
|
|
|
95 |
|
|
|
246 |
|
|
|
550 |
|
Other real estate owned |
|
8,401 |
|
|
|
8,030 |
|
|
|
4,528 |
|
|
|
1,422 |
|
|
|
1,927 |
|
Other repossessed assets |
|
26 |
|
|
|
— |
|
|
|
— |
|
|
|
34 |
|
|
|
43 |
|
Total nonperforming
assets |
$ |
66,931 |
|
|
$ |
73,268 |
|
|
$ |
67,532 |
|
|
$ |
65,876 |
|
|
$ |
71,889 |
|
|
|
|
|
|
|
|
|
|
|
Performing troubled debt
restructured loans |
$ |
8,279 |
|
|
$ |
8,047 |
|
|
$ |
1,350 |
|
|
$ |
882 |
|
|
$ |
817 |
|
|
|
|
|
|
|
|
|
|
|
Nonperforming Assets
Activity |
|
|
|
|
|
|
|
|
|
Balance, beginning of
period |
$ |
73,268 |
|
|
$ |
67,532 |
|
|
$ |
65,876 |
|
|
$ |
71,889 |
|
|
$ |
88,146 |
|
Net loan (charge offs)
recoveries |
|
1,693 |
|
|
|
(26 |
) |
|
|
(714 |
) |
|
|
(12,194 |
) |
|
|
(637 |
) |
New nonperforming loans |
|
1,439 |
|
|
|
8,388 |
|
|
|
8,590 |
|
|
|
15,832 |
|
|
|
5,886 |
|
Reduction of nonperforming
loans(1) |
|
(8,875 |
) |
|
|
(2,015 |
) |
|
|
(5,244 |
) |
|
|
(8,448 |
) |
|
|
(18,429 |
) |
OREO/Repossessed assets sales
proceeds |
|
(594 |
) |
|
|
(611 |
) |
|
|
(976 |
) |
|
|
(1,203 |
) |
|
|
(3,077 |
) |
Balance, end of
period |
$ |
66,931 |
|
|
$ |
73,268 |
|
|
$ |
67,532 |
|
|
$ |
65,876 |
|
|
$ |
71,889 |
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios |
|
|
|
|
|
|
|
|
|
Ratio of nonperforming loans
to total loans |
|
0.51 |
% |
|
|
0.60 |
% |
|
|
0.59 |
% |
|
|
0.63 |
% |
|
|
0.70 |
% |
Ratio of nonperforming loans
and performing trouble debt restructured loans to total loans |
|
0.58 |
|
|
|
0.67 |
|
|
|
0.60 |
|
|
|
0.64 |
|
|
|
0.71 |
|
Ratio of nonperforming assets
to total assets |
|
0.33 |
|
|
|
0.37 |
|
|
|
0.34 |
|
|
|
0.34 |
|
|
|
0.37 |
|
Annualized ratio of net loan
charge-offs (recoveries) to average loans |
|
(0.06 |
) |
|
|
0.00 |
|
|
|
0.03 |
|
|
|
0.49 |
|
|
|
0.03 |
|
Allowance for loan credit
losses as a percent of loans |
|
0.96 |
|
|
|
0.97 |
|
|
|
0.95 |
|
|
|
0.99 |
|
|
|
1.11 |
|
Allowance for lending related
credit losses as a percent of loans |
|
1.13 |
|
|
|
1.14 |
|
|
|
1.12 |
|
|
|
1.15 |
|
|
|
1.26 |
|
Allowance for loan credit
losses as a percent of nonperforming loans |
|
187.14 |
|
|
|
162.05 |
|
|
|
160.87 |
|
|
|
156.04 |
|
|
|
157.45 |
|
Loans delinquent 30-89 days as
a percent of total loans |
|
0.04 |
|
|
|
0.10 |
|
|
|
0.06 |
|
|
|
0.10 |
|
|
|
0.07 |
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
principal reductions, transfers to performing status and transfers
to OREO. |
HEARTLAND
FINANCIAL USA, INC. |
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
DOLLARS
IN THOUSANDS |
|
For the Quarter Ended |
|
December 31, 2022 |
|
September 30, 2022 |
|
December 31, 2021 |
|
AverageBalance |
|
Interest |
|
Rate |
|
AverageBalance |
|
Interest |
|
Rate |
|
AverageBalance |
|
Interest |
|
Rate |
Earning Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
$ |
6,122,313 |
|
|
$ |
53,178 |
|
3.45 |
% |
|
$ |
6,303,278 |
|
|
$ |
45,648 |
|
2.87 |
% |
|
$ |
6,730,511 |
|
|
$ |
30,637 |
|
1.81 |
% |
Nontaxable(1) |
|
890,368 |
|
|
|
7,762 |
|
3.46 |
|
|
|
951,232 |
|
|
|
7,802 |
|
3.25 |
|
|
|
964,712 |
|
|
|
7,082 |
|
2.91 |
|
Total securities |
|
7,012,681 |
|
|
|
60,940 |
|
3.45 |
|
|
|
7,254,510 |
|
|
|
53,450 |
|
2.92 |
|
|
|
7,695,223 |
|
|
|
37,719 |
|
1.94 |
|
Interest on deposits with
other banks and other short-term investments |
|
151,405 |
|
|
|
1,410 |
|
3.69 |
|
|
|
222,170 |
|
|
|
1,081 |
|
1.93 |
|
|
|
218,809 |
|
|
|
86 |
|
0.16 |
|
Federal funds sold |
|
739 |
|
|
|
11 |
|
5.91 |
|
|
|
11 |
|
|
|
— |
|
— |
|
|
|
— |
|
|
|
— |
|
— |
|
Loans:(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial(1) |
|
3,346,843 |
|
|
|
45,290 |
|
5.37 |
|
|
|
3,182,134 |
|
|
|
37,526 |
|
4.68 |
|
|
|
2,614,685 |
|
|
|
26,465 |
|
4.02 |
|
PPP loans |
|
12,252 |
|
|
|
397 |
|
12.86 |
|
|
|
17,859 |
|
|
|
363 |
|
8.06 |
|
|
|
302,829 |
|
|
|
8,106 |
|
10.62 |
|
Owner occupied commercial real estate |
|
2,277,055 |
|
|
|
26,194 |
|
4.56 |
|
|
|
2,272,666 |
|
|
|
23,601 |
|
4.12 |
|
|
|
2,166,768 |
|
|
|
22,007 |
|
4.03 |
|
Non-owner occupied commercial real estate |
|
2,286,298 |
|
|
|
29,273 |
|
5.08 |
|
|
|
2,258,424 |
|
|
|
25,895 |
|
4.55 |
|
|
|
1,996,186 |
|
|
|
21,744 |
|
4.32 |
|
Real estate construction |
|
1,050,802 |
|
|
|
16,585 |
|
6.26 |
|
|
|
914,520 |
|
|
|
12,382 |
|
5.37 |
|
|
|
837,716 |
|
|
|
9,390 |
|
4.45 |
|
Agricultural and agricultural real estate |
|
785,647 |
|
|
|
10,159 |
|
5.13 |
|
|
|
799,823 |
|
|
|
8,966 |
|
4.45 |
|
|
|
697,521 |
|
|
|
7,089 |
|
4.03 |
|
Residential mortgage |
|
858,767 |
|
|
|
9,168 |
|
4.24 |
|
|
|
858,119 |
|
|
|
8,665 |
|
4.01 |
|
|
|
853,208 |
|
|
|
8,615 |
|
4.01 |
|
Consumer |
|
499,849 |
|
|
|
7,426 |
|
5.89 |
|
|
|
479,590 |
|
|
|
6,028 |
|
4.99 |
|
|
|
417,114 |
|
|
|
4,793 |
|
4.56 |
|
Less: allowance for credit losses-loans |
|
(106,500 |
) |
|
|
— |
|
— |
|
|
|
(102,031 |
) |
|
|
— |
|
— |
|
|
|
(118,142 |
) |
|
|
— |
|
— |
|
Net loans |
|
11,011,013 |
|
|
|
144,492 |
|
5.21 |
|
|
|
10,681,104 |
|
|
|
123,426 |
|
4.58 |
|
|
|
9,767,885 |
|
|
|
108,209 |
|
4.40 |
|
Total earning
assets |
|
18,175,838 |
|
|
|
206,853 |
|
4.52 |
% |
|
|
18,157,795 |
|
|
|
177,957 |
|
3.89 |
% |
|
|
17,681,917 |
|
|
|
146,014 |
|
3.28 |
% |
Nonearning Assets |
|
1,738,011 |
|
|
|
|
|
|
|
1,617,546 |
|
|
|
|
|
|
|
1,469,774 |
|
|
|
|
|
Total
Assets |
$ |
19,913,849 |
|
|
|
|
|
|
$ |
19,775,341 |
|
|
|
|
|
|
$ |
19,151,691 |
|
|
|
|
|
Interest Bearing
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings |
$ |
9,987,692 |
|
|
$ |
25,950 |
|
1.03 |
% |
|
$ |
10,059,652 |
|
|
$ |
12,907 |
|
0.51 |
% |
|
$ |
8,609,596 |
|
|
$ |
2,160 |
|
0.10 |
% |
Time deposits |
|
1,322,094 |
|
|
|
6,265 |
|
1.88 |
|
|
|
1,156,908 |
|
|
|
2,251 |
|
0.77 |
|
|
|
1,048,785 |
|
|
|
1,008 |
|
0.38 |
|
Short-term borrowings |
|
298,804 |
|
|
|
2,223 |
|
2.95 |
|
|
|
134,974 |
|
|
|
360 |
|
1.06 |
|
|
|
176,956 |
|
|
|
123 |
|
0.28 |
|
Other borrowings |
|
371,442 |
|
|
|
5,043 |
|
5.39 |
|
|
|
371,492 |
|
|
|
4,412 |
|
4.71 |
|
|
|
371,918 |
|
|
|
3,554 |
|
3.79 |
|
Total interest bearing
liabilities |
|
11,980,032 |
|
|
|
39,481 |
|
1.31 |
% |
|
|
11,723,026 |
|
|
|
19,930 |
|
0.67 |
% |
|
|
10,207,255 |
|
|
|
6,845 |
|
0.27 |
% |
Noninterest Bearing
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest bearing
deposits |
|
6,009,432 |
|
|
|
|
|
|
|
6,065,729 |
|
|
|
|
|
|
|
6,607,095 |
|
|
|
|
|
Accrued interest and other
liabilities |
|
264,941 |
|
|
|
|
|
|
|
201,575 |
|
|
|
|
|
|
|
164,663 |
|
|
|
|
|
Total noninterest
bearing liabilities |
|
6,274,373 |
|
|
|
|
|
|
|
6,267,304 |
|
|
|
|
|
|
|
6,771,758 |
|
|
|
|
|
Equity |
|
1,659,444 |
|
|
|
|
|
|
|
1,785,011 |
|
|
|
|
|
|
|
2,172,678 |
|
|
|
|
|
Total Liabilities and
Equity |
$ |
19,913,849 |
|
|
|
|
|
|
$ |
19,775,341 |
|
|
|
|
|
|
$ |
19,151,691 |
|
|
|
|
|
Net interest income,
fully tax-equivalent
(non-GAAP)(1)(3) |
|
|
$ |
167,372 |
|
|
|
|
|
$ |
158,027 |
|
|
|
|
|
$ |
139,169 |
|
|
Net interest
spread(1) |
|
|
|
|
3.21 |
% |
|
|
|
|
|
3.22 |
% |
|
|
|
|
|
3.01 |
% |
Net interest income,
fully tax-equivalent (non-GAAP) to total earning
assets(1)(3) |
|
|
|
|
3.65 |
% |
|
|
|
|
|
3.45 |
% |
|
|
|
|
|
3.12 |
% |
Interest bearing liabilities
to earning assets |
|
65.91 |
% |
|
|
|
|
|
|
64.56 |
% |
|
|
|
|
|
|
57.73 |
% |
|
|
|
|
|
(1) Computed on a
tax-equivalent basis using an effective tax rate of 21%. |
(2) Nonaccrual
loans and loans held for sale are included in the average loans
outstanding. |
(3) Refer to "Non-GAAP Measures" in this earnings release for
additional information on the usage and presentation of these
non-GAAP measures, and refer to these financial tables for the
reconciliations to the most directly comparable GAAP measures. |
HEARTLAND
FINANCIAL USA, INC. |
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
DOLLARS IN THOUSANDS |
|
For the Year Ended |
|
December 31, 2022 |
|
December 31, 2021 |
|
AverageBalance |
|
Interest |
|
Rate |
|
AverageBalance |
|
Interest |
|
Rate |
Earning Assets |
|
|
|
|
|
|
|
|
|
|
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
Taxable |
$ |
6,335,586 |
|
|
$ |
169,544 |
|
2.68 |
% |
|
$ |
6,135,732 |
|
|
$ |
125,010 |
|
2.04 |
% |
Nontaxable(1) |
|
965,474 |
|
|
|
30,387 |
|
3.15 |
|
|
|
799,283 |
|
|
|
24,390 |
|
3.05 |
|
Total securities |
|
7,301,060 |
|
|
|
199,931 |
|
2.74 |
|
|
|
6,935,015 |
|
|
|
149,400 |
|
2.15 |
|
Interest bearing deposits with
other banks and other short-term investments |
|
216,786 |
|
|
|
3,125 |
|
1.44 |
|
|
|
254,630 |
|
|
|
344 |
|
0.14 |
|
Federal funds sold |
|
192 |
|
|
|
11 |
|
5.73 |
|
|
|
3,457 |
|
|
|
1 |
|
0.03 |
|
Loans:(2) |
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial(1) |
|
3,070,890 |
|
|
|
140,310 |
|
4.57 |
|
|
|
2,543,514 |
|
|
|
111,473 |
|
4.38 |
|
PPP loans |
|
50,464 |
|
|
|
6,884 |
|
13.64 |
|
|
|
734,139 |
|
|
|
40,627 |
|
5.53 |
|
Owner occupied commercial real estate |
|
2,272,088 |
|
|
|
93,936 |
|
4.13 |
|
|
|
1,950,014 |
|
|
|
81,717 |
|
4.19 |
|
Non-owner occupied commercial real estate |
|
2,196,922 |
|
|
|
99,202 |
|
4.52 |
|
|
|
1,969,910 |
|
|
|
87,728 |
|
4.45 |
|
Real estate construction |
|
923,316 |
|
|
|
48,258 |
|
5.23 |
|
|
|
824,055 |
|
|
|
37,891 |
|
4.60 |
|
Agricultural and agricultural real estate |
|
778,526 |
|
|
|
34,064 |
|
4.38 |
|
|
|
681,493 |
|
|
|
29,822 |
|
4.38 |
|
Residential mortgage |
|
852,541 |
|
|
|
34,276 |
|
4.02 |
|
|
|
846,573 |
|
|
|
36,768 |
|
4.34 |
|
Consumer |
|
464,084 |
|
|
|
23,058 |
|
4.97 |
|
|
|
407,592 |
|
|
|
20,201 |
|
4.96 |
|
Less: allowance for credit
losses-loans |
|
(105,735 |
) |
|
|
— |
|
— |
|
|
|
(125,304 |
) |
|
|
— |
|
— |
|
Net loans |
|
10,503,096 |
|
|
|
479,988 |
|
4.57 |
|
|
|
9,831,986 |
|
|
|
446,227 |
|
4.54 |
|
Total earning
assets |
|
18,021,134 |
|
|
|
683,055 |
|
3.79 |
% |
|
|
17,025,088 |
|
|
|
595,972 |
|
3.50 |
% |
Nonearning Assets |
|
1,600,705 |
|
|
|
|
|
|
|
1,483,185 |
|
|
|
|
|
Total
Assets |
$ |
19,621,839 |
|
|
|
|
|
|
$ |
18,508,273 |
|
|
|
|
|
Interest Bearing
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
Savings |
$ |
9,737,100 |
|
|
$ |
46,623 |
|
0.48 |
% |
|
$ |
8,311,825 |
|
|
$ |
9,063 |
|
0.11 |
% |
Time deposits |
|
1,160,538 |
|
|
|
10,257 |
|
0.88 |
|
|
|
1,137,097 |
|
|
|
5,734 |
|
0.50 |
|
Short-term borrowings |
|
168,404 |
|
|
|
2,717 |
|
1.61 |
|
|
|
181,165 |
|
|
|
471 |
|
0.26 |
|
Other borrowings |
|
371,879 |
|
|
|
16,823 |
|
4.52 |
|
|
|
339,733 |
|
|
|
12,932 |
|
3.81 |
|
Total interest bearing
liabilities |
|
11,437,921 |
|
|
|
76,420 |
|
0.67 |
% |
|
|
9,969,820 |
|
|
|
28,200 |
|
0.28 |
% |
Noninterest Bearing
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
Noninterest bearing
deposits |
|
6,131,760 |
|
|
|
|
|
|
|
6,230,851 |
|
|
|
|
|
Accrued interest and other
liabilities |
|
203,412 |
|
|
|
|
|
|
|
176,697 |
|
|
|
|
|
Total noninterest bearing
liabilities |
|
6,335,172 |
|
|
|
|
|
|
|
6,407,548 |
|
|
|
|
|
Equity |
|
1,848,746 |
|
|
|
|
|
|
|
2,130,905 |
|
|
|
|
|
Total Liabilities and
Equity |
$ |
19,621,839 |
|
|
|
|
|
|
$ |
18,508,273 |
|
|
|
|
|
Net interest income,
fully tax-equivalent
(non-GAAP)(1)(3) |
|
|
$ |
606,635 |
|
|
|
|
|
$ |
567,772 |
|
|
Net interest
spread(1) |
|
|
|
|
3.12 |
% |
|
|
|
|
|
3.22 |
% |
Net interest income,
fully tax-equivalent (non-GAAP) to total earning
assets(1)(3) |
|
|
|
|
3.37 |
% |
|
|
|
|
|
3.33 |
% |
Interest bearing liabilities
to earning assets |
|
63.47 |
% |
|
|
|
|
|
|
58.56 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Computed on a
tax-equivalent basis using an effective tax rate of 21%. |
(2) Nonaccrual loans
and loans held for sale are included in the average loans
outstanding. |
(3) Refer to "Non-GAAP Measures" in this earnings release for
additional information on the usage and presentation of these
non-GAAP measures, and refer to these financial tables for the
reconciliations to the most directly comparable GAAP measures. |
HEARTLAND
FINANCIAL USA, INC. |
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA |
|
For the Quarter Ended |
|
12/31/2022 |
|
9/30/2022 |
|
6/30/2022 |
|
3/31/2022 |
|
12/31/2021 |
Reconciliation of Annualized Return on Average Tangible
Common Equity (non-GAAP) |
|
|
|
|
|
|
|
|
|
Net income available to common stockholders (GAAP) |
$ |
58,642 |
|
|
$ |
54,551 |
|
|
$ |
49,861 |
|
|
$ |
41,076 |
|
|
$ |
47,568 |
|
Plus core deposit and customer relationship intangibles
amortization, net of tax(1) |
|
1,455 |
|
|
|
1,466 |
|
|
|
1,645 |
|
|
|
1,623 |
|
|
|
1,713 |
|
Net income available
to common stockholders excluding intangible amortization
(non-GAAP) |
$ |
60,097 |
|
|
$ |
56,017 |
|
|
$ |
51,506 |
|
|
$ |
42,699 |
|
|
$ |
49,281 |
|
|
|
|
|
|
|
|
|
|
|
Average common equity
(GAAP) |
$ |
1,548,739 |
|
|
$ |
1,674,306 |
|
|
$ |
1,731,393 |
|
|
$ |
2,003,424 |
|
|
$ |
2,061,973 |
|
Less average goodwill |
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
Less average core deposit and customer relationship intangibles,
net |
|
26,046 |
|
|
|
27,902 |
|
|
|
29,845 |
|
|
|
31,931 |
|
|
|
34,018 |
|
Average tangible
common equity (non-GAAP) |
$ |
946,688 |
|
|
$ |
1,070,399 |
|
|
$ |
1,125,543 |
|
|
$ |
1,395,488 |
|
|
$ |
1,451,950 |
|
Annualized return on average
common equity (GAAP) |
|
15.02 |
% |
|
|
12.93 |
% |
|
|
11.55 |
% |
|
|
8.32 |
% |
|
|
9.15 |
% |
Annualized return on average
tangible common equity (non-GAAP) |
|
25.19 |
% |
|
|
20.76 |
% |
|
|
18.35 |
% |
|
|
12.41 |
% |
|
|
13.47 |
% |
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Annualized Net Interest Margin, Fully Tax-Equivalent
(non-GAAP) |
|
|
|
|
|
|
|
|
|
Net Interest Income
(GAAP) |
$ |
165,220 |
|
|
$ |
155,876 |
|
|
$ |
142,461 |
|
|
$ |
134,679 |
|
|
$ |
137,194 |
|
Plus tax-equivalent adjustment(1) |
|
2,152 |
|
|
|
2,151 |
|
|
|
1,977 |
|
|
|
2,119 |
|
|
|
1,975 |
|
Net interest income,
fully tax-equivalent (non-GAAP) |
$ |
167,372 |
|
|
$ |
158,027 |
|
|
$ |
144,438 |
|
|
$ |
136,798 |
|
|
$ |
139,169 |
|
|
|
|
|
|
|
|
|
|
|
Average earning assets |
$ |
18,175,838 |
|
|
$ |
18,157,795 |
|
|
$ |
17,987,734 |
|
|
$ |
17,757,067 |
|
|
$ |
17,681,917 |
|
|
|
|
|
|
|
|
|
|
|
Annualized net interest margin
(GAAP) |
|
3.61 |
% |
|
|
3.41 |
% |
|
|
3.18 |
% |
|
|
3.08 |
% |
|
|
3.08 |
% |
Annualized net interest
margin, fully tax-equivalent (non-GAAP) |
|
3.65 |
|
|
|
3.45 |
|
|
|
3.22 |
|
|
|
3.12 |
|
|
|
3.12 |
|
Net purchase accounting
discount amortization on loans included in annualized net interest
margin |
|
0.03 |
|
|
|
0.03 |
|
|
|
0.07 |
|
|
|
0.05 |
|
|
|
0.05 |
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Tangible Book Value Per Common Share (non-GAAP) |
|
|
|
|
|
|
|
|
|
Common equity (GAAP) |
$ |
1,624,350 |
|
|
$ |
1,545,253 |
|
|
$ |
1,663,363 |
|
|
$ |
1,821,152 |
|
|
$ |
2,071,473 |
|
Less goodwill |
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
Less core deposit and customer relationship intangibles, net |
|
25,154 |
|
|
|
26,995 |
|
|
|
28,851 |
|
|
|
30,934 |
|
|
|
32,988 |
|
Tangible common equity
(non-GAAP) |
$ |
1,023,191 |
|
|
$ |
942,253 |
|
|
$ |
1,058,507 |
|
|
$ |
1,214,213 |
|
|
$ |
1,462,480 |
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding, net
of treasury stock |
|
42,467,394 |
|
|
|
42,444,106 |
|
|
|
42,439,439 |
|
|
|
42,369,908 |
|
|
|
42,275,264 |
|
Common equity (book value) per
share (GAAP) |
$ |
38.25 |
|
|
$ |
36.41 |
|
|
$ |
39.19 |
|
|
$ |
42.98 |
|
|
$ |
49.00 |
|
Tangible book value per common
share (non-GAAP) |
$ |
24.09 |
|
|
$ |
22.20 |
|
|
$ |
24.94 |
|
|
$ |
28.66 |
|
|
$ |
34.59 |
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Tangible Common Equity Ratio (non-GAAP) |
|
|
|
|
|
|
|
|
|
Tangible common equity
(non-GAAP) |
$ |
1,023,191 |
|
|
$ |
942,253 |
|
|
$ |
1,058,507 |
|
|
$ |
1,214,213 |
|
|
$ |
1,462,480 |
|
|
|
|
|
|
|
|
|
|
|
Total assets (GAAP) |
$ |
20,244,228 |
|
|
$ |
19,682,950 |
|
|
$ |
19,658,399 |
|
|
$ |
19,230,879 |
|
|
$ |
19,274,549 |
|
Less goodwill |
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
Less core deposit and customer relationship intangibles, net |
|
25,154 |
|
|
|
26,995 |
|
|
|
28,851 |
|
|
|
30,934 |
|
|
|
32,988 |
|
Total tangible assets
(non-GAAP) |
$ |
19,643,069 |
|
|
$ |
19,079,950 |
|
|
$ |
19,053,543 |
|
|
$ |
18,623,940 |
|
|
$ |
18,665,556 |
|
Tangible common equity ratio
(non-GAAP) |
|
5.21 |
% |
|
|
4.94 |
% |
|
|
5.56 |
% |
|
|
6.52 |
% |
|
|
7.84 |
% |
|
|
|
|
|
|
|
|
|
|
(1) Computed on a
tax-equivalent basis using an effective tax rate of 21%. |
HEARTLAND
FINANCIAL USA, INC. |
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
DOLLARS
IN THOUSANDS, EXCEPT PER SHARE DATA |
Reconciliation of Efficiency Ratio (non-GAAP) |
For the Quarter Ended |
12/31/2022 |
|
9/30/2022 |
|
6/30/2022 |
|
3/31/2022 |
|
12/31/2021 |
Net interest income (GAAP) |
$ |
165,220 |
|
|
$ |
155,876 |
|
|
$ |
142,461 |
|
|
$ |
134,679 |
|
|
$ |
137,194 |
|
Tax-equivalent
adjustment(1) |
|
2,152 |
|
|
|
2,151 |
|
|
|
1,977 |
|
|
|
2,119 |
|
|
|
1,975 |
|
Fully tax-equivalent net
interest income |
|
167,372 |
|
|
|
158,027 |
|
|
|
144,438 |
|
|
|
136,798 |
|
|
|
139,169 |
|
Noninterest income |
|
29,975 |
|
|
|
29,181 |
|
|
|
34,539 |
|
|
|
34,569 |
|
|
|
32,730 |
|
Securities (gains)/losses,
net |
|
153 |
|
|
|
1,055 |
|
|
|
2,089 |
|
|
|
(2,872 |
) |
|
|
(1,563 |
) |
Unrealized (gain) loss on
equity securities, net |
|
7 |
|
|
|
211 |
|
|
|
121 |
|
|
|
283 |
|
|
|
27 |
|
Valuation adjustment on
servicing rights |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,658 |
) |
|
|
(502 |
) |
Adjusted revenue
(non-GAAP) |
$ |
197,507 |
|
|
$ |
188,474 |
|
|
$ |
181,187 |
|
|
$ |
167,120 |
|
|
$ |
169,861 |
|
|
|
|
|
|
|
|
|
|
|
Total noninterest expenses
(GAAP) |
$ |
117,218 |
|
|
$ |
108,883 |
|
|
$ |
106,479 |
|
|
$ |
110,797 |
|
|
$ |
115,386 |
|
Less: |
|
|
|
|
|
|
|
|
|
Core deposit and customer relationship intangibles
amortization |
|
1,841 |
|
|
|
1,856 |
|
|
|
2,083 |
|
|
|
2,054 |
|
|
|
2,169 |
|
Partnership investment in tax credit projects |
|
3,247 |
|
|
|
979 |
|
|
|
737 |
|
|
|
77 |
|
|
|
2,549 |
|
(Gain) loss on sales/valuation of assets, net |
|
2,388 |
|
|
|
(251 |
) |
|
|
(3,230 |
) |
|
|
46 |
|
|
|
214 |
|
Acquisition, integration and restructuring costs |
|
2,442 |
|
|
|
2,156 |
|
|
|
2,412 |
|
|
|
576 |
|
|
|
1,989 |
|
Core expenses
(non-GAAP) |
$ |
107,300 |
|
|
$ |
104,143 |
|
|
$ |
104,477 |
|
|
$ |
108,044 |
|
|
$ |
108,465 |
|
Efficiency ratio, fully
tax-equivalent (non-GAAP) |
|
54.33 |
% |
|
|
55.26 |
% |
|
|
57.66 |
% |
|
|
64.65 |
% |
|
|
63.86 |
% |
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Annualized Ratio of Core Expenses to Average Assets
(non-GAAP) |
|
|
|
|
|
|
|
|
|
Total noninterest expenses
(GAAP) |
$ |
117,218 |
|
|
$ |
108,883 |
|
|
$ |
106,479 |
|
|
$ |
110,797 |
|
|
$ |
115,386 |
|
Core expenses (non-GAAP) |
|
107,300 |
|
|
|
104,143 |
|
|
|
104,477 |
|
|
|
108,044 |
|
|
|
108,465 |
|
|
|
|
|
|
|
|
|
|
|
Average assets |
$ |
19,913,849 |
|
|
$ |
19,775,341 |
|
|
$ |
19,559,091 |
|
|
$ |
19,229,872 |
|
|
$ |
19,151,691 |
|
Total noninterest expenses to
average assets (GAAP) |
|
2.34 |
% |
|
|
2.18 |
% |
|
|
2.18 |
% |
|
|
2.34 |
% |
|
|
2.39 |
% |
Core expenses to average
assets (non-GAAP) |
|
2.14 |
% |
|
|
2.09 |
% |
|
|
2.14 |
% |
|
|
2.28 |
% |
|
|
2.25 |
% |
|
|
|
|
|
|
|
|
|
|
Acquisition,
integration and restructuring costs |
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits |
$ |
424 |
|
|
$ |
365 |
|
|
$ |
275 |
|
|
$ |
340 |
|
|
$ |
— |
|
Occupancy |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Furniture and equipment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Professional fees |
|
1,587 |
|
|
|
1,480 |
|
|
|
1,779 |
|
|
|
236 |
|
|
|
1,989 |
|
Advertising |
|
95 |
|
|
|
131 |
|
|
|
156 |
|
|
|
— |
|
|
|
— |
|
(Gain) loss on
sales/valuations of assets, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other noninterest
expenses |
|
336 |
|
|
|
180 |
|
|
|
202 |
|
|
|
— |
|
|
|
— |
|
Total acquisition,
integration and restructuring costs |
$ |
2,442 |
|
|
$ |
2,156 |
|
|
$ |
2,412 |
|
|
$ |
576 |
|
|
$ |
1,989 |
|
After tax impact on diluted
earnings per share(1) |
$ |
0.05 |
|
|
$ |
0.04 |
|
|
$ |
0.04 |
|
|
$ |
0.01 |
|
|
$ |
0.05 |
|
|
|
|
|
|
|
|
|
|
|
(1) Computed on a
tax-equivalent basis using an effective tax rate of 21%. |
HEARTLAND
FINANCIAL USA, INC. |
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA |
|
For the Quarter EndedDecember
31, |
|
For the Year EndedDecember
31, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Reconciliation of Annualized Return on Average Tangible
Common Equity (non-GAAP) |
|
|
|
|
|
|
|
Net income available to common
stockholders (GAAP) |
$ |
58,642 |
|
|
$ |
47,568 |
|
|
$ |
204,130 |
|
|
$ |
211,873 |
|
Plus core deposit and customer relationship intangibles
amortization, net of tax(1) |
|
1,455 |
|
|
|
1,713 |
|
|
|
6,189 |
|
|
|
7,422 |
|
Net income available
to common stockholders excluding intangible amortization
(non-GAAP) |
$ |
60,097 |
|
|
$ |
49,281 |
|
|
$ |
210,319 |
|
|
$ |
219,295 |
|
|
|
|
|
|
|
|
|
Average common equity
(GAAP) |
$ |
1,548,739 |
|
|
$ |
2,061,973 |
|
|
$ |
1,738,041 |
|
|
$ |
2,020,200 |
|
Less average goodwill |
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
Less average core deposit and customer relationship intangibles,
net |
|
26,046 |
|
|
|
34,018 |
|
|
|
28,912 |
|
|
|
37,554 |
|
Average tangible
common equity (non-GAAP) |
$ |
946,688 |
|
|
$ |
1,451,950 |
|
|
$ |
1,133,124 |
|
|
$ |
1,406,641 |
|
Annualized return on average
common equity (GAAP) |
|
15.02 |
% |
|
|
9.15 |
% |
|
|
11.74 |
% |
|
|
10.49 |
% |
Annualized return on average
tangible common equity (non-GAAP) |
|
25.19 |
% |
|
|
13.47 |
% |
|
|
18.56 |
% |
|
|
15.59 |
% |
|
|
|
|
|
|
|
|
Reconciliation of
Annualized Net Interest Margin, Fully Tax-Equivalent
(non-GAAP) |
|
|
|
|
|
|
|
Net Interest Income
(GAAP) |
$ |
165,220 |
|
|
$ |
137,194 |
|
|
$ |
598,236 |
|
|
$ |
560,560 |
|
Plus tax-equivalent adjustment(1) |
|
2,152 |
|
|
|
1,975 |
|
|
|
8,399 |
|
|
|
7,212 |
|
Net interest income,
fully tax-equivalent (non-GAAP) |
$ |
167,372 |
|
|
$ |
139,169 |
|
|
$ |
606,635 |
|
|
$ |
567,772 |
|
|
|
|
|
|
|
|
|
Average earning assets |
$ |
18,175,838 |
|
|
$ |
17,681,917 |
|
|
$ |
18,021,134 |
|
|
$ |
17,025,088 |
|
|
|
|
|
|
|
|
|
Annualized net interest margin
(GAAP) |
|
3.61 |
% |
|
|
3.08 |
% |
|
|
3.32 |
% |
|
|
3.29 |
% |
Annualized net interest
margin, fully tax-equivalent (non-GAAP) |
|
3.65 |
|
|
|
3.12 |
|
|
|
3.37 |
|
|
|
3.33 |
|
Net purchase accounting
discount amortization on loans included in annualized net interest
margin |
|
0.03 |
|
|
|
0.05 |
|
|
|
0.04 |
|
|
|
0.09 |
|
|
|
|
|
|
|
|
|
(1) Computed on a
tax-equivalent basis using an effective tax rate of 21%. |
HEARTLAND
FINANCIAL USA, INC. |
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA |
|
For the Quarter EndedDecember
31, |
|
For the Year EndedDecember
31, |
Reconciliation of Efficiency Ratio (non-GAAP) |
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net interest income
(GAAP) |
$ |
165,220 |
|
|
$ |
137,194 |
|
|
$ |
598,236 |
|
|
$ |
560,560 |
|
Tax-equivalent
adjustment(1) |
|
2,152 |
|
|
|
1,975 |
|
|
|
8,399 |
|
|
|
7,212 |
|
Fully tax-equivalent net
interest income |
|
167,372 |
|
|
|
139,169 |
|
|
|
606,635 |
|
|
|
567,772 |
|
Noninterest income |
|
29,975 |
|
|
|
32,730 |
|
|
|
128,264 |
|
|
|
128,935 |
|
Securities (gains)/losses,
net |
|
153 |
|
|
|
(1,563 |
) |
|
|
425 |
|
|
|
(5,910 |
) |
Unrealized (gain) loss on
equity securities, net |
|
7 |
|
|
|
27 |
|
|
|
622 |
|
|
|
(58 |
) |
Valuation adjustment on
servicing rights |
|
— |
|
|
|
(502 |
) |
|
|
(1,658 |
) |
|
|
(1,088 |
) |
Adjusted revenue
(non-GAAP) |
$ |
197,507 |
|
|
$ |
169,861 |
|
|
$ |
734,288 |
|
|
$ |
689,651 |
|
|
|
|
|
|
|
|
|
Total noninterest expenses
(GAAP) |
$ |
117,218 |
|
|
$ |
115,386 |
|
|
$ |
443,377 |
|
|
$ |
431,812 |
|
Less: |
|
|
|
|
|
|
|
Core deposit and customer relationship intangibles
amortization |
|
1,841 |
|
|
|
2,169 |
|
|
|
7,834 |
|
|
|
9,395 |
|
Partnership investment in tax credit projects |
|
3,247 |
|
|
|
2,549 |
|
|
|
5,040 |
|
|
|
6,303 |
|
(Gain) loss on sales/valuations of assets, net |
|
2,388 |
|
|
|
214 |
|
|
|
(1,047 |
) |
|
|
588 |
|
Acquisition, integration and restructuring costs |
|
2,442 |
|
|
|
1,989 |
|
|
|
7,586 |
|
|
|
5,331 |
|
Core expenses
(non-GAAP) |
$ |
107,300 |
|
|
$ |
108,465 |
|
|
$ |
423,964 |
|
|
$ |
410,195 |
|
Efficiency ratio, fully
tax-equivalent (non-GAAP) |
|
54.33 |
% |
|
|
63.86 |
% |
|
|
57.74 |
% |
|
|
59.48 |
% |
|
|
|
|
|
|
|
|
Reconciliation of
Annualized Ratio of Core Expenses to Average Assets
(non-GAAP) |
|
|
|
|
|
|
|
Total noninterest expenses
(GAAP) |
$ |
117,218 |
|
|
$ |
115,386 |
|
|
$ |
443,377 |
|
|
$ |
431,812 |
|
Core expenses (non-GAAP) |
|
107,300 |
|
|
|
108,465 |
|
|
|
423,964 |
|
|
|
410,195 |
|
|
|
|
|
|
|
|
|
Average assets |
$ |
19,913,849 |
|
|
$ |
19,151,691 |
|
|
$ |
19,621,839 |
|
|
$ |
18,508,273 |
|
Total noninterest expenses to
average assets (GAAP) |
|
2.34 |
% |
|
|
2.39 |
% |
|
|
2.26 |
% |
|
|
2.33 |
% |
Core expenses to average
assets (non-GAAP) |
|
2.14 |
% |
|
|
2.25 |
% |
|
|
2.16 |
% |
|
|
2.22 |
% |
|
|
|
|
|
|
|
|
Acquisition,
integration and restructuring costs |
|
|
|
|
|
|
|
Salaries and employee
benefits |
$ |
424 |
|
|
$ |
— |
|
|
$ |
1,404 |
|
|
$ |
578 |
|
Occupancy |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10 |
|
Furniture and equipment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
655 |
|
Professional fees |
|
1,587 |
|
|
|
1,989 |
|
|
|
5,082 |
|
|
|
2,867 |
|
Advertising |
|
95 |
|
|
|
— |
|
|
|
382 |
|
|
|
173 |
|
(Gain)/loss on
sales/valuations of assets, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
39 |
|
Other noninterest
expenses |
|
336 |
|
|
|
— |
|
|
|
718 |
|
|
|
1,009 |
|
Total acquisition,
integration and restructuring costs |
$ |
2,442 |
|
|
$ |
1,989 |
|
|
$ |
7,586 |
|
|
$ |
5,331 |
|
After tax impact on diluted
earnings per share(1) |
$ |
0.05 |
|
|
$ |
0.05 |
|
|
$ |
0.14 |
|
|
$ |
0.13 |
|
|
|
|
|
|
|
|
|
(1) Computed on a
tax-equivalent basis using an effective tax rate of 21%. |
CONTACT: |
Bryan R. McKeag |
Executive Vice President |
Chief Financial Officer |
(563) 589-1994 |
bmckeag@htlf.com |
Heartland Financial USA (NASDAQ:HTLF)
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