Third Quarter
Highlights
- Quarterly net income available to
common stockholders of $62.1 million or $1.44 per common share
- Adjusted earnings available to
common stockholders of $50.6 million or $1.17 adjusted diluted
earnings per common share (non-GAAP), which excludes:
- Gain on sale, net, of $29.7 million
due to the sale of Rocky Mountain Bank branches in Montana.
- Loss on security sales of $9.5
million.
- Loss on fixed assets of $2.9 million
due to branch closures and write-downs on properties listed for
sale.
- Common equity to total assets
increased to 11.11%; while the tangible common equity ratio
(non-GAAP) improved 86 basis points to 8.14%.
- Net interest margin, full
tax-equivalent (non-GAAP) increased to 3.78% for the quarter ended
September 30, 2024 up from 3.73% for the quarter ended June 30,
2024.
- Nonperforming loans were $69.9 million
or 0.61% of total loans, a decrease of $33.8 million or 33% from
the quarter ended June 30, 2024.
- Charge-offs of $32.1 million, of
which the majority have been reserved for in prior periods, were
recorded for the third quarter.
| |
For the Quarter Ended |
|
For the Nine Months Ended
September 30, |
|
|
9/30/2024 |
|
6/30/2024 |
|
9/30/2023 |
|
2024 |
|
2023 |
|
Earnings Summary: |
|
|
|
|
|
|
|
|
|
|
Net income/(loss) available to common stockholders (in
millions) |
$ |
62.1 |
|
|
$ |
37.7 |
|
|
$ |
46.1 |
|
|
$ |
149.6 |
|
|
$ |
144.2 |
|
| Diluted earnings/(loss) per
common share |
|
1.44 |
|
|
|
0.88 |
|
|
|
1.08 |
|
|
|
3.47 |
|
|
|
3.37 |
|
| Annualized return on average
assets |
|
1.38 |
% |
|
|
0.84 |
% |
|
|
0.94 |
% |
|
|
1.10 |
% |
|
|
1.00 |
% |
| Annualized return on average
common equity |
|
12.60 |
|
|
|
8.14 |
|
|
|
10.47 |
|
|
|
10.59 |
|
|
|
11.28 |
|
|
Annualized return on average tangible common equity
(non-GAAP)(1) |
|
18.32 |
|
|
|
12.28 |
|
|
|
16.32 |
|
|
|
15.77 |
|
|
|
17.82 |
|
| Net interest margin |
|
3.73 |
|
|
|
3.68 |
|
|
|
3.14 |
|
|
|
3.65 |
|
|
|
3.23 |
|
|
Net interest margin, fully tax-equivalent
(non-GAAP)(1) |
|
3.78 |
|
|
|
3.73 |
|
|
|
3.18 |
|
|
|
3.69 |
|
|
|
3.27 |
|
| Efficiency ratio |
|
48.58 |
|
|
|
65.69 |
|
|
|
63.77 |
|
|
|
58.94 |
|
|
|
61.86 |
|
|
Adjusted efficiency ratio, fully-tax equivalent
(non-GAAP)(1) |
|
57.98 |
|
|
|
57.73 |
|
|
|
59.95 |
|
|
|
58.16 |
|
|
|
58.98 |
|
| |
|
|
|
|
|
|
|
|
|
| Adjusted Earnings
Summary (1): |
|
|
|
|
|
|
|
|
|
| Adjusted earnings available to
common stockholders (in millions) |
$ |
50.6 |
|
|
$ |
49.6 |
|
|
$ |
48.1 |
|
|
$ |
152.7 |
|
|
$ |
148.3 |
|
| Adjusted diluted earnings per
common share |
|
1.17 |
|
|
|
1.15 |
|
|
|
1.12 |
|
|
|
3.54 |
|
|
|
3.47 |
|
| Adjusted annualized return on
average assets |
|
1.14 |
% |
|
|
1.09 |
% |
|
|
0.98 |
% |
|
|
1.12 |
% |
|
|
1.02 |
% |
| Adjusted annualized return on
average common equity |
|
10.27 |
|
|
|
10.71 |
|
|
|
10.92 |
|
|
|
10.81 |
|
|
|
11.60 |
|
|
Adjusted annualized return on average tangible common equity |
|
14.98 |
|
|
|
16.05 |
|
|
|
17.02 |
|
|
|
16.09 |
|
|
|
18.31 |
|
| |
|
|
|
|
|
|
|
|
|
(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 the financial
tables for reconciliations to the most directly comparable GAAP
measures.
|
"HTLF delivered a solid third quarter. Net interest margin
increased as we continue to pay down high cost wholesale deposits.
Our tangible common equity ratio improved to 8.14%. In July we
completed the strategic sale of Rocky Mountain Bank in Montana,
resulting in a net gain of $29.7 million. We continue to work
closely with our partners at UMB on integration planning for our
two companies and we’re excited about closing the transaction,
expected in Q1 2025." |
|
Bruce K. Lee, President and Chief Executive Officer,
HTLF |
DENVER, Oct. 29, 2024 (GLOBE NEWSWIRE) -- Heartland
Financial USA, Inc. (NASDAQ: HTLF) today reported the
following results for the quarter ended September 30, 2024,
compared to the quarter ended September 30, 2023:
- Net income
available to common stockholders of $62.1 million compared to $46.1
million, an increase of $16.1 million or 35%.
- Earnings per
diluted common share of $1.44 compared to $1.08, an increase of
$0.36 or 33%.
- Adjusted
earnings available to common stockholders(1) of $50.6
million or $1.17 per diluted common share compared to $48.1 million
or $1.12 per diluted common share, which excludes:
- Gain on sale,
net, of $29.7 million due to the sale of Rocky Mountain Bank
branches in Montana.
- Loss on security
sales of $9.5 million.
- Loss on fixed
assets of $2.9 million due to branch closures and write-downs on
properties listed for sale.
- Net interest
income of $157.9 million compared to $145.8 million, an increase of
$12.1 million or 8%.
- Annualized
return on average assets of 1.38% compared to 0.94%. Adjusted
annualized return on average assets(1) of 1.14% compared
to 0.98%.
- Annualized
return on average common equity of 12.60% compared to 10.47%.
Adjusted annualized return on average common equity(1)
of 10.27% compared to 10.92%.
- Annualized return on average
tangible common equity(1) of 18.32% compared to 16.32%.
Adjusted annualized return on average tangible common
equity(1) of 14.98% compared to 17.02%.
Rocky Mountain Bank Sale
HTLF Bank closed on the sale of the Rocky
Mountain Bank branches in Montana in mid-July to two purchasers,
which included loans of $343.8 million, deposits of $531.9 million
and fixed assets of $13.8 million. The gain on sale, net, of $29.7
million was realized in the third quarter of 2024.
Net Interest Income and Net Interest
Margin
Net interest margin, expressed as a percentage
of average earning assets, was 3.73% (3.78% on a fully
tax-equivalent basis, non-GAAP) for the third quarter of 2024
compared to 3.68% (3.73% on a fully tax-equivalent basis, non-GAAP)
for the second quarter of 2024, and 3.14% (3.18% on a fully
tax-equivalent basis, non-GAAP) for the third quarter of 2023.
Total interest income and average earning asset
changes for the third quarter of 2024 compared to the third quarter
of 2023 were:
- Total interest
income was $253.8 million compared to $245.4 million, an increase
of $8.4 million or 3%, primarily attributable to an increase in
yields on average earning assets. During the third quarter of 2024,
HTLF recorded $5.3 million in additional interest income for a
security that paid off.
- Total interest income on a
tax-equivalent basis (non-GAAP) was $255.8 million, an increase of
$8.2 million or 3%, from $247.6 million. Subsequent to September
30, 2024, the fair value hedges were terminated in favorable market
conditions in early October. HTLF recorded $10.3 million of
interest income associated with the fair value hedges in the third
quarter of 2024 in comparison to $5.6 million in the third quarter
of 2023. As a result of the fair value hedge terminations, no
additional interest income will be recorded.
- Average earning
assets decreased $1.60 billion or 9% to $16.84 billion compared to
$18.44 billion, primarily due to the sale of $865.4 million of
securities during the fourth quarter of 2023, $108.4 million of
securities sold during the second quarter of 2024, and $40.3
million of securities sold during the third quarter of 2024. The
proceeds were utilized to pay down high-cost wholesale deposits and
borrowings.
- The average rate on earning assets
increased 71 basis points to 6.04% from 5.33%, primarily due to
recent interest rate increases on earning assets.
Total interest expense and average
interest-bearing liability changes for the third quarter of 2024
compared to the third quarter of 2023 were:
- Total interest
expense was $95.9 million, a decrease of $3.8 million from $99.7
million, primarily due to a decrease in average interest-bearing
liabilities.
- The average
interest rate paid on interest-bearing liabilities increased 17
basis points to 3.18% from 3.01%.
- Average
interest-bearing deposits decreased $1.65 billion or 13% to $11.03
billion from $12.68 billion.
- The average
interest rate paid on interest-bearing deposits decreased 4 basis
points to 2.86% from 2.90%.
- Average borrowings and term debt
increased $478.2 million to $953.9 million from $475.7 million, and
the average interest rate paid on borrowings decreased 40 basis
points to 5.39% from 5.78%.
Net interest income changes for the third
quarter of 2024 compared to the third quarter of 2023 were:
- Net interest
income totaled $157.9 million compared to $145.8 million, an
increase of $12.1 million or 8%.
- Net interest income on a
tax-equivalent basis (non-GAAP) totaled $159.9 million compared to
$147.9 million, an increase of $12.0 million or 8%.
Noninterest Income and Noninterest
Expense
Total noninterest income was $19.0 million
during the third quarter of 2024 compared to $28.4 million during
the third quarter of 2023, a decrease of $9.4 million or 33%.
Significant changes within the noninterest income category for the
third quarter of 2024 compared to the third quarter of 2023
were:
- Service charges
and fees decreased $1.5 million or 8% to $17.1 million from $18.6
million, primarily attributable to a decrease in consumer NSF and
overdraft fees. In the fourth quarter of 2023, HTLF instituted a
new fee policy across our single charter customer base in response
to industry changes related to consumer overdraft fees.
- Net security
losses increased $9.4 million to $9.5 million compared to net
security losses of $114,000.
- Net gains on
sales of loans held for sale decreased to $0 from $905,000, due to
HTLF ceasing originations of residential mortgage loans to be sold
to the secondary market.
- Other
noninterest income increased $957,000 to $1.6 million from
$619,000, primarily due to an increase in deferred compensation
income of $1.0 million to $1.5 million from
$433,000.
Total noninterest expense was $85.9 million
during the third quarter of 2024 compared to $111.1 million during
the third quarter of 2023, a decrease of $25.1 million or 23%.
Significant changes within the noninterest expense category for the
third quarter of 2024 compared to the third quarter of 2023
were:
- Salaries and
employee benefits totaled $62.7 million compared to $62.3 million,
an increase of $480,000 or 1%. The increase was attributable to
higher benefit costs including incentive compensation and benefit
expenses partially offset by a reduction of full-time equivalent
employees. Full-time equivalent employees totaled 1,725 compared to
1,965, a decrease of 240 or 12%.
- Professional
fees totaled $17.4 million compared to $13.6 million, an increase
of $3.8 million or 28%, primarily due to an increase legal
expenses, including those associated with special asset loans.
- Gain on sale of
assets, net, totaled $26.4 million compared to a loss on sale of
assets of $108,000. As discussed earlier, Rocky Mountain Bank, a
division of HTLF Bank, was sold during the third quarter of 2024
which generated a gain on sale, net, of $29.7 million.
The effective tax rate was 24.25% for the third
quarter of 2024 compared to 21.89% for third quarter of 2023. The
following items impacted the third quarter 2024 and 2023 tax
calculations:
- Various tax
credits of $629,000 compared to $1.6 million.
- Tax-exempt interest income as a
percentage of pre-tax income of 8.92% compared to 13.14%.
- Tax benefit of $140,000 compared to
a tax expense of $41,000 resulting from the vesting of restricted
stock units.
- Tax expense of $1.1 million
compared to $1.6 million resulting from the disallowed interest
expense related to tax-exempt loans and securities.
Total Assets, Total Loans and Total
Deposits
Total assets were $18.27 billion at September
30, 2024, compared to $18.81 billion at June 30, 2024, and $19.41
billion at December 31, 2023. Total assets decreased $540.1 million
or 3% during the third quarter of 2024 and $1.14 billion or 6%
since year-end 2023. Securities represented 27% and 29% of total
assets at September 30, 2024, and December 31, 2023,
respectively.
Total loans held to maturity were $11.44 billion
at September 30, 2024, compared to $11.61 billion at June 30, 2024,
and $12.07 billion at December 31, 2023. Loans decreased $167.4
million or 1% during the third quarter of 2024 and $627.7 million
or 5% since year-end 2023. Excluding the impact of Rocky Mountain
Bank, loans held to maturity decreased $172.4 million or 1% during
the third quarter of 2024 and decreased $284.0 million or 2% since
year-end 2023.
Significant changes by loan category at
September 30, 2024 compared to June 30, 2024 included:
- Commercial and
business lending, which includes commercial and industrial, PPP and
owner occupied commercial real estate loans, decreased $262.7
million or 4% to $5.99 billion compared to $6.26 billion. Excluding
the impact of Rocky Mountain Bank, commercial and business lending
decreased $119.4 million or 2%.
- Commercial real
estate lending, which includes non-owner occupied commercial real
estate and construction loans, decreased $3.3 million, or less than
1%, to $3.58 billion compared to $3.58 billion. Excluding the
impact of Rocky Mountain Bank, commercial real estate lending
increased $67.0 million or 2%.
- Agricultural and
agricultural real estate loans decreased $167.2 million or 19% to
$701.2 million compared to $868.4 million. Excluding the impact of
Rocky Mountain Bank, agricultural and agricultural real estate
loans decreased $99.9 million or 12%.
- Residential mortgage loans
decreased $56.7 million or 7% to $708.0 million compared to $764.7
million. Excluding the impact of Rocky Mountain Bank, residential
mortgage loans decreased $25.7 million or 3%.
Significant changes by loan category at
September 30, 2024 compared to December 31, 2023 included:
- Commercial and
business lending, which includes commercial and industrial, PPP and
owner occupied commercial real estate loans, decreased $298.6
million or 5% to $5.99 billion compared to $6.29 billion. Excluding
the Rocky Mountain Bank loans sold of $143.3 million, commercial
and business lending decreased $155.3 million or 2%.
- Commercial real
estate lending, which includes non-owner occupied commercial real
estate and construction loans, increased $9.9 million or less than
1% to $3.58 billion compared to $3.57 billion. Excluding the Rocky
Mountain Bank loans sold of $70.3 million, commercial real estate
lending increased $80.2 million or 2%.
- Agricultural and
agricultural real estate loans decreased $218.0 million or 24% to
$701.2 million compared to $919.2 million. Excluding the Rocky
Mountain Bank loans sold of $67.3 million, agricultural and
agricultural real estate loans decreased $150.7 million or
16%.
- Residential mortgage loans
decreased $89.8 million or 11% to $708.0 million compared to $797.8
million. Excluding the Rocky Mountain Bank loans sold of $31.0
million, residential mortgage loans decreased $58.9 million or
7%.
Total deposits were $14.95 billion as of
September 30, 2024, compared to $14.96 billion as of June 30, 2024,
a decrease of $3.4 million or less than 1%. Total deposits were
$14.95 billion as of September 30, 2024, compared to $16.20 billion
at December 31, 2023, which was a decrease of $1.25 billion or 8%.
Excluding the impact of Rocky Mountain Bank, deposits decreased
$9.8 million or less than 1% during the third quarter of 2024 and
decreased $716.6 million or 4% since year-end 2023.
Total customer deposits were $14.35 billion as
of September 30, 2024, compared to $14.13 billion at June 30, 2024,
an increase of $217.6 million or 2%. Excluding the impact of Rocky
Mountain Bank, customer deposits increased $211.2 million or 1%.
Significant customer deposit changes by category at September 30,
2024, compared to June 30, 2024, included:
- Customer demand
deposits decreased $367.6 million or 8% to $4.01 billion compared
to $4.38 billion. Excluding the impact of Rocky Mountain Bank,
customer demand deposits decreased $235.9 million or 6%.
- Customer savings
deposits increased $270.0 million or 3% to $8.71 billion compared
to $8.44 billion. Excluding the impact of Rocky Mountain Bank,
customer savings deposits increased $554.4 million or 7%.
- Customer time deposits decreased
$223.1 million or 12% to $1.63 billion compared to $1.85 billion.
Excluding the impact of Rocky Mountain Bank, customer time deposits
decreased $107.3 million or 6%.
Total customer deposits were $14.35 billion as
of September 30, 2024, compared to $14.86 billion at December 31,
2023, a decrease of $505.1 million or 3%. Excluding the Rocky
Mountain Bank customer deposits sold of $531.9 million, customer
deposits increased $26.7 million. Significant customer deposit
changes by category at September 30, 2024, compared to December 31,
2023, included:
- Customer demand
deposits decreased $491.1 million or 11% to $4.01 billion compared
to $4.50 billion. Excluding the Rocky Mountain Bank customer demand
deposits sold of $131.7 million, customer demand deposits decreased
$359.3 million or 8%.
- Customer savings
deposits increased $302.0 million or 4% to $8.71 billion compared
to $8.41 billion. Excluding the Rocky Mountain Bank customer
savings deposits sold of $284.3 million, customer savings deposits
increased $586.3 million or 7%.
- Customer time deposits decreased
$316.0 million or 16% to $1.63 billion compared to $1.94 billion.
Excluding the Rocky Mountain Bank customer time deposits sold of
$115.8 million, customer time deposits decreased $200.2 million or
10%.
Total wholesale and institutional deposits were
$601.9 million as of September 30, 2024, a decrease of $221.0
million or 27% from $822.9 million at June 30, 2024. Significant
wholesale and institutional deposit changes by category at
September 30, 2024 compared to June 30, 2024 included:
- Wholesale and
institutional savings deposits decreased $105.7 million or 33% to
$213.0 million compared to $318.6 million.
- Wholesale time deposits decreased
$115.3 million or 23% to $389.0 million compared to $504.3
million.
Total wholesale and institutional deposits were
$601.9 million as of September 30, 2024, which was a decrease of
$743.4 million or 55% from $1.35 billion at December 31, 2023.
Significant wholesale and institutional deposit changes by category
at September 30, 2024 compared to December 31, 2023 included:
- Wholesale and
institutional savings deposits decreased $181.4 million or 46% to
$213.0 million compared to $394.4 million.
- Wholesale time deposits decreased
$562.0 million or 59% to $389.0 million compared to $950.9
million.
Provision and Allowance
Provision and Allowance for Credit Losses
for Loans
Provision for credit losses for loans for the third quarter of 2024
was $8.9 million, an increase of $6.2 million from $2.7 million
recorded in the third quarter of 2023.
The allowance for credit losses for loans
totaled $106.8 million at September 30, 2024 and $122.6 million at
December 31, 2023. The following items impacted the allowance for
credit losses for loans at September 30, 2024:
- Provision
expense for the nine months ended September 30, 2024, totaled $22.3
million. Provision expense was primarily impacted in the third
quarter of 2024 by a nonperforming food manufacturing syndication
loan currently in bankruptcy proceedings. HTLF recorded a
charge-off of $19.2 million for this credit during the third
quarter of 2024, of which $10.0 million was reserved for in a prior
period.
- Net charge-offs of $38.0 million,
of which the majority have been reserved for in prior periods, were
recorded for the first nine months of 2024.
Provision and Allowance for Credit Losses
for Unfunded Commitments
The allowance for unfunded commitments decreased $6.0 million or
36% to $10.5 million at September 30, 2024, from $16.5 million at
December 31, 2023. The following impacted HTLF's allowance for
credit losses for unfunded commitments during 2024:
- Provision
benefit for the nine months ended September 30, 2024, totaled $6.0
million.
- Reduction of
$82.9 million in unfunded commitments for construction loans, which
carry the highest loss rate.
- Total unfunded
commitments decreased $684.5 million or 15% to $3.94 billion at
September 30, 2024 compared to $4.63 billion at December 31,
2023.
Total Provision and Allowance for Lending
Related Credit Losses
The total provision expense for lending related credit losses was
$6.3 million for the third quarter of 2024 compared to $1.5 million
for the third quarter of 2023. The total allowance for lending
related credit losses was $117.3 million or 1.02% of total loans at
September 30, 2024, compared to $139.0 million or 1.15% of total
loans as of December 31, 2023.
Nonperforming Assets
Nonperforming assets were $76.8 million or 0.42%
of total assets at September 30, 2024, compared to $110.5 million
or 0.57% of total assets at December 31, 2023. Nonperforming assets
were reduced by charge-offs of $32.1 million and the return to
performing status of a $10.4 million owner occupied commercial real
estate loan relationship. The reduction was partially offset by the
addition of a $10.1 million non-owner commercial real estate loan
relationship. Nonperforming loans were $69.9 million or 0.61% of
total loans at September 30, 2024, compared to $97.9 million or
0.81% of total loans at December 31, 2023. At September 30, 2024,
loans delinquent 30-89 days were 0.26% of total loans compared to
0.09% of total loans at December 31, 2023. The increase in the
30-89 day delinquencies was due to a single $12.8 million real
estate construction loan. Other real estate owned, net, decreased
$5.7 million or 46% to $6.8 million at September 30, 2024 from
$12.5 million at December 31, 2023.
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:
- Adjusted earnings available to
common stockholders and adjusted diluted earnings per common share,
adjust net income for the gain/loss from sale of securities, and
other non-operating expenses as well as the tax effect of those
transactions. Management believes these measures enhance the
comparability net income available to common stockholders as it
reflects adjustments commonly made by management, investors and
analysts to evaluate the ongoing operations and enhance
comparability with the results of prior periods.
- Adjusted annualized return on
average assets, adjusts net income for the gain/loss from sale of
securities, and other non-operating expenses as well as the tax
effect of those transactions. Management believes this measure
enhances the comparability of annualized return on average assets
as it reflects adjustments commonly made by management, investors
and analysts to evaluate the ongoing operations and enhance
comparability with the results of prior periods.
- 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.
- Adjusted
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. Net interest
margin, fully tax equivalent, is net interest income adjusted for
the tax-favored status of certain loans and securities divided by
average earning assets.
- 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.
- Adjusted annualized return on
average common equity, adjusts net income for the loss from sale of
securities, and other non-operating expenses as well as the tax
effect of those transactions. Management believes this measure
enhances the comparability of annualized return on average assets
as it reflects adjustments commonly made by management, investors
and analysts to evaluate the ongoing operations and enhance
comparability with the results of prior periods.
- 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.
- Adjusted annualized return on
average tangible common equity, adjusts net income available to
common stockholders for the loss from sale of securities, and other
non-operating expenses as well as the tax effect of those
transactions. Management believes this measure enhances the
comparability of annualized return on average assets as it reflects
adjustments commonly made by management, investors and analysts to
evaluate the ongoing operations and enhance comparability with the
results of prior periods.
- 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.
About HTLF
Heartland Financial USA, Inc., is a Denver, Colorado-based bank
holding company operating under the brand name HTLF, with assets of
$18.27 billion as of September 30, 2024. HTLF's banks serve
customers in the West, Southwest and Midwest regions. HTLF is
committed to serving the banking needs of privately owned
businesses, their owners, executives and employees. Our core
commercial business is supported by a strong retail banking
operation, in addition to a diversified line of financial services
including treasury management, wealth management and investments.
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, 2023 and updates in HTLF's Forms 10-Q filed
thereafter, and include, among others:
- Economic and
Market Conditions Risks, including risks related to the
deterioration of the U.S. economy in general and in the local
economies in which HTLF conducts its operations and future civil
unrest, natural disasters, pandemics and governmental measures
addressing them, climate change and climate-related regulations,
persistent inflation, higher interest rates, 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 due to 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;
- Risks related to
the planned merger with UMB Financial Corporation (the “Merger”),
the fluctuation of the market value of the merger consideration,
risks related to combining our businesses, including expenses
related to the Merger and integration of the combined entity, risks
that the Merger may not occur, and the risk of litigation related
to the Merger;
- Operational
Risks, including processing, information systems, cybersecurity,
vendor, business interruption, and fraud risks;
- Strategic and
External Risks, including economic, political, and competitive
forces impacting our business;
- 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 HTLF's business, financial condition and results of
operations. Additionally, all statements in this release, including
forward-looking statements speak only as of the date they are made.
HTLF 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
HTLF's financial results, is included in HTLF’s filings with the
SEC.
-FINANCIAL TABLES FOLLOW-
| CONTACT: |
| Kevin L. Thompson |
| Executive Vice President |
| Chief Financial Officer |
| (563) 589-1994 |
| kthompson@htlf.com |
| HEARTLAND
FINANCIAL USA, INC. |
|
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
| DOLLARS
IN THOUSANDS, EXCEPT PER SHARE DATA |
|
|
For the Quarter Ended
September 30, |
|
For the Nine Months Ended
September 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Interest Income |
|
|
|
|
|
|
|
| Interest and fees on
loans |
$ |
192,506 |
|
|
$ |
182,394 |
|
|
$ |
587,328 |
|
|
$ |
505,136 |
|
| Interest on securities: |
|
|
|
|
|
|
|
|
Taxable |
|
51,116 |
|
|
|
54,800 |
|
|
|
145,511 |
|
|
|
168,948 |
|
|
Nontaxable |
|
5,979 |
|
|
|
6,584 |
|
|
|
18,062 |
|
|
|
18,990 |
|
| Interest on federal funds
sold |
|
— |
|
|
|
3 |
|
|
|
— |
|
|
|
3 |
|
| Interest on deposits with
other banks and short-term investments |
|
4,193 |
|
|
|
1,651 |
|
|
|
10,244 |
|
|
|
4,833 |
|
| Total Interest
Income |
|
253,794 |
|
|
|
245,432 |
|
|
|
761,145 |
|
|
|
697,910 |
|
| Interest
Expense |
|
|
|
|
|
|
|
| Interest on deposits |
|
82,976 |
|
|
|
92,744 |
|
|
|
247,609 |
|
|
|
231,617 |
|
| Interest on borrowings |
|
7,378 |
|
|
|
1,167 |
|
|
|
25,727 |
|
|
|
4,437 |
|
| Interest on term debt |
|
5,543 |
|
|
|
5,765 |
|
|
|
16,956 |
|
|
|
16,756 |
|
| Total Interest
Expense |
|
95,897 |
|
|
|
99,676 |
|
|
|
290,292 |
|
|
|
252,810 |
|
| Net Interest
Income |
|
157,897 |
|
|
|
145,756 |
|
|
|
470,853 |
|
|
|
445,100 |
|
| Provision for credit
losses |
|
6,276 |
|
|
|
1,516 |
|
|
|
16,270 |
|
|
|
9,969 |
|
| Net Interest Income
After Provision for Credit Losses |
|
151,621 |
|
|
|
144,240 |
|
|
|
454,583 |
|
|
|
435,131 |
|
| Noninterest
Income |
|
|
|
|
|
|
|
| Service charges and fees |
|
17,100 |
|
|
|
18,553 |
|
|
|
51,127 |
|
|
|
55,316 |
|
| Loan servicing income |
|
111 |
|
|
|
278 |
|
|
|
349 |
|
|
|
1,403 |
|
| Trust fees |
|
5,272 |
|
|
|
4,734 |
|
|
|
15,847 |
|
|
|
15,810 |
|
| Brokerage and insurance
commissions |
|
853 |
|
|
|
692 |
|
|
|
2,501 |
|
|
|
2,065 |
|
| Capital markets fees |
|
2,116 |
|
|
|
1,845 |
|
|
|
5,003 |
|
|
|
8,331 |
|
| Securities gains (losses),
net |
|
(9,520 |
) |
|
|
(114 |
) |
|
|
(19,573 |
) |
|
|
(1,532 |
) |
| Unrealized gain on equity
securities, net |
|
377 |
|
|
|
13 |
|
|
|
605 |
|
|
|
165 |
|
| Net gains on sale of loans
held for sale |
|
— |
|
|
|
905 |
|
|
|
104 |
|
|
|
3,786 |
|
| Income on bank owned life
insurance |
|
1,107 |
|
|
|
858 |
|
|
|
3,610 |
|
|
|
3,042 |
|
| Other noninterest income |
|
1,576 |
|
|
|
619 |
|
|
|
5,289 |
|
|
|
2,489 |
|
| Total Noninterest
Income |
|
18,992 |
|
|
|
28,383 |
|
|
|
64,862 |
|
|
|
90,875 |
|
| Noninterest
Expense |
|
|
|
|
|
|
|
| Salaries and employee
benefits |
|
62,742 |
|
|
|
62,262 |
|
|
|
191,817 |
|
|
|
186,510 |
|
| Occupancy |
|
6,318 |
|
|
|
6,438 |
|
|
|
19,843 |
|
|
|
20,338 |
|
| Furniture and equipment |
|
2,062 |
|
|
|
2,720 |
|
|
|
6,554 |
|
|
|
8,698 |
|
| Professional fees |
|
17,448 |
|
|
|
13,616 |
|
|
|
48,351 |
|
|
|
41,607 |
|
| FDIC insurance
assessments |
|
3,035 |
|
|
|
3,313 |
|
|
|
11,344 |
|
|
|
9,627 |
|
| Advertising |
|
1,937 |
|
|
|
1,633 |
|
|
|
4,663 |
|
|
|
6,670 |
|
| Core deposit intangibles
amortization |
|
1,345 |
|
|
|
1,625 |
|
|
|
4,258 |
|
|
|
5,128 |
|
| Other real estate and loan
collection expenses, net |
|
395 |
|
|
|
481 |
|
|
|
1,422 |
|
|
|
984 |
|
| (Gain) loss on
sales/valuations of assets, net |
|
(26,419 |
) |
|
|
108 |
|
|
|
(26,012 |
) |
|
|
(2,149 |
) |
| Acquisition, integration and
restructuring costs |
|
2,026 |
|
|
|
2,429 |
|
|
|
9,374 |
|
|
|
5,994 |
|
| Partnership investment in tax
credit projects |
|
222 |
|
|
|
1,136 |
|
|
|
938 |
|
|
|
1,828 |
|
| Other noninterest expense |
|
14,816 |
|
|
|
15,292 |
|
|
|
43,214 |
|
|
|
46,307 |
|
| Total Noninterest
Expense |
|
85,927 |
|
|
|
111,053 |
|
|
|
315,766 |
|
|
|
331,542 |
|
| Income Before Income
Taxes |
|
84,686 |
|
|
|
61,570 |
|
|
|
203,679 |
|
|
|
194,464 |
|
| Income taxes |
|
20,533 |
|
|
|
13,479 |
|
|
|
48,077 |
|
|
|
44,181 |
|
| Net
Income/(Loss) |
|
64,153 |
|
|
|
48,091 |
|
|
|
155,602 |
|
|
|
150,283 |
|
| Preferred dividends |
|
(2,013 |
) |
|
|
(2,013 |
) |
|
|
(6,038 |
) |
|
|
(6,038 |
) |
| Net Income/(Loss)
Available to Common Stockholders |
$ |
62,140 |
|
|
$ |
46,078 |
|
|
$ |
149,564 |
|
|
$ |
144,245 |
|
| Earnings/(loss) per
common share-diluted |
$ |
1.44 |
|
|
$ |
1.08 |
|
|
$ |
3.47 |
|
|
$ |
3.37 |
|
| Weighted average
shares outstanding-diluted |
|
43,195,257 |
|
|
|
42,812,563 |
|
|
|
43,080,422 |
|
|
|
42,769,872 |
|
| HEARTLAND
FINANCIAL USA, INC. |
|
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
| DOLLARS
IN THOUSANDS, EXCEPT PER SHARE DATA |
|
|
For the Quarter Ended |
|
|
9/30/2024 |
|
6/30/2024 |
|
3/31/2024 |
|
12/31/2023 |
|
9/30/2023 |
|
Interest Income |
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
$ |
192,506 |
|
|
$ |
199,161 |
|
|
$ |
195,661 |
|
|
$ |
192,861 |
|
|
$ |
182,394 |
|
| Interest on securities: |
|
|
|
|
|
|
|
|
|
|
Taxable |
|
51,116 |
|
|
|
47,381 |
|
|
|
47,014 |
|
|
|
54,573 |
|
|
|
54,800 |
|
|
Nontaxable |
|
5,979 |
|
|
|
6,042 |
|
|
|
6,041 |
|
|
|
6,278 |
|
|
|
6,584 |
|
| Interest on federal funds
sold |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
| Interest on deposits with
other banks and short-term investments |
|
4,193 |
|
|
|
3,045 |
|
|
|
3,006 |
|
|
|
2,174 |
|
|
|
1,651 |
|
| Total Interest
Income |
|
253,794 |
|
|
|
255,629 |
|
|
|
251,722 |
|
|
|
255,886 |
|
|
|
245,432 |
|
| Interest
Expense |
|
|
|
|
|
|
|
|
|
| Interest on deposits |
|
82,976 |
|
|
|
80,499 |
|
|
|
84,134 |
|
|
|
88,071 |
|
|
|
92,744 |
|
| Interest on borrowings |
|
7,378 |
|
|
|
10,825 |
|
|
|
7,524 |
|
|
|
5,874 |
|
|
|
1,167 |
|
| Interest on term debt |
|
5,543 |
|
|
|
5,564 |
|
|
|
5,849 |
|
|
|
5,804 |
|
|
|
5,765 |
|
| Total Interest
Expense |
|
95,897 |
|
|
|
96,888 |
|
|
|
97,507 |
|
|
|
99,749 |
|
|
|
99,676 |
|
| Net Interest
Income |
|
157,897 |
|
|
|
158,741 |
|
|
|
154,215 |
|
|
|
156,137 |
|
|
|
145,756 |
|
| Provision for credit
losses |
|
6,276 |
|
|
|
9,008 |
|
|
|
986 |
|
|
|
11,738 |
|
|
|
1,516 |
|
| Net Interest Income
After Provision for Credit Losses |
|
151,621 |
|
|
|
149,733 |
|
|
|
153,229 |
|
|
|
144,399 |
|
|
|
144,240 |
|
| Noninterest
Income |
|
|
|
|
|
|
|
|
|
| Service charges and fees |
|
17,100 |
|
|
|
16,964 |
|
|
|
17,063 |
|
|
|
18,708 |
|
|
|
18,553 |
|
| Loan servicing income |
|
111 |
|
|
|
107 |
|
|
|
131 |
|
|
|
158 |
|
|
|
278 |
|
| Trust fees |
|
5,272 |
|
|
|
5,532 |
|
|
|
5,043 |
|
|
|
4,905 |
|
|
|
4,734 |
|
| Brokerage and insurance
commissions |
|
853 |
|
|
|
894 |
|
|
|
754 |
|
|
|
729 |
|
|
|
692 |
|
| Capital markets fees |
|
2,116 |
|
|
|
1,996 |
|
|
|
891 |
|
|
|
1,676 |
|
|
|
1,845 |
|
| Securities gains (losses),
net |
|
(9,520 |
) |
|
|
(10,111 |
) |
|
|
58 |
|
|
|
(140,007 |
) |
|
|
(114 |
) |
| Unrealized gain on equity
securities, net |
|
377 |
|
|
|
133 |
|
|
|
95 |
|
|
|
75 |
|
|
|
13 |
|
| Net gains on sale of loans
held for sale |
|
— |
|
|
|
— |
|
|
|
104 |
|
|
|
94 |
|
|
|
905 |
|
| Income on bank owned life
insurance |
|
1,107 |
|
|
|
1,326 |
|
|
|
1,177 |
|
|
|
729 |
|
|
|
858 |
|
| Other noninterest income |
|
1,576 |
|
|
|
1,366 |
|
|
|
2,347 |
|
|
|
1,132 |
|
|
|
619 |
|
| Total Noninterest
Income |
|
18,992 |
|
|
|
18,207 |
|
|
|
27,663 |
|
|
|
(111,801 |
) |
|
|
28,383 |
|
| Noninterest
Expense |
|
|
|
|
|
|
|
|
|
| Salaries and employee
benefits |
|
62,742 |
|
|
|
65,120 |
|
|
|
63,955 |
|
|
|
64,766 |
|
|
|
62,262 |
|
| Occupancy |
|
6,318 |
|
|
|
6,262 |
|
|
|
7,263 |
|
|
|
6,509 |
|
|
|
6,438 |
|
| Furniture and equipment |
|
2,062 |
|
|
|
2,155 |
|
|
|
2,337 |
|
|
|
2,901 |
|
|
|
2,720 |
|
| Professional fees |
|
17,448 |
|
|
|
15,372 |
|
|
|
15,531 |
|
|
|
17,060 |
|
|
|
13,616 |
|
| FDIC insurance
assessments |
|
3,035 |
|
|
|
3,340 |
|
|
|
4,969 |
|
|
|
10,313 |
|
|
|
3,313 |
|
| Advertising |
|
1,937 |
|
|
|
1,368 |
|
|
|
1,358 |
|
|
|
1,677 |
|
|
|
1,633 |
|
| Core deposit intangibles
amortization |
|
1,345 |
|
|
|
1,421 |
|
|
|
1,492 |
|
|
|
1,611 |
|
|
|
1,625 |
|
| Other real estate and loan
collection expenses, net |
|
395 |
|
|
|
515 |
|
|
|
512 |
|
|
|
505 |
|
|
|
481 |
|
| (Gain) loss on
sales/valuations of assets, net |
|
(26,419 |
) |
|
|
193 |
|
|
|
214 |
|
|
|
2,072 |
|
|
|
108 |
|
| Acquisition, integration and
restructuring costs |
|
2,026 |
|
|
|
5,973 |
|
|
|
1,375 |
|
|
|
4,365 |
|
|
|
2,429 |
|
| Partnership investment in tax
credit projects |
|
222 |
|
|
|
222 |
|
|
|
494 |
|
|
|
3,573 |
|
|
|
1,136 |
|
| Other noninterest expense |
|
14,816 |
|
|
|
14,303 |
|
|
|
14,095 |
|
|
|
14,933 |
|
|
|
15,292 |
|
| Total Noninterest
Expense |
|
85,927 |
|
|
|
116,244 |
|
|
|
113,595 |
|
|
|
130,285 |
|
|
|
111,053 |
|
| Income Before Income
Taxes |
|
84,686 |
|
|
|
51,696 |
|
|
|
67,297 |
|
|
|
(97,687 |
) |
|
|
61,570 |
|
| Income taxes |
|
20,533 |
|
|
|
11,954 |
|
|
|
15,590 |
|
|
|
(27,324 |
) |
|
|
13,479 |
|
| Net
Income/(Loss) |
|
64,153 |
|
|
|
39,742 |
|
|
|
51,707 |
|
|
|
(70,363 |
) |
|
|
48,091 |
|
| Preferred dividends |
|
(2,013 |
) |
|
|
(2,012 |
) |
|
|
(2,013 |
) |
|
|
(2,012 |
) |
|
|
(2,013 |
) |
| Net Income/(Loss)
Available to Common Stockholders |
$ |
62,140 |
|
|
$ |
37,730 |
|
|
$ |
49,694 |
|
|
$ |
(72,375 |
) |
|
$ |
46,078 |
|
| Earnings/(loss) per
common share-diluted |
$ |
1.44 |
|
|
$ |
0.88 |
|
|
$ |
1.16 |
|
|
$ |
(1.69 |
) |
|
$ |
1.08 |
|
| Weighted average
shares outstanding-diluted |
|
43,195,257 |
|
|
|
43,060,354 |
|
|
|
42,915,768 |
|
|
|
42,838,405 |
|
|
|
42,812,563 |
|
| HEARTLAND
FINANCIAL USA, INC. |
|
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
| DOLLARS
IN THOUSANDS, EXCEPT PER SHARE DATA |
|
|
As of |
|
|
9/30/2024 |
|
6/30/2024 |
|
3/31/2024 |
|
12/31/2023 |
|
9/30/2023 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
228,719 |
|
|
$ |
226,735 |
|
|
$ |
208,176 |
|
|
$ |
275,554 |
|
|
$ |
248,756 |
|
| Interest-bearing deposits with
other banks and short-term investments |
|
359,675 |
|
|
|
147,211 |
|
|
|
236,190 |
|
|
|
47,459 |
|
|
|
99,239 |
|
| Cash and cash equivalents |
|
588,394 |
|
|
|
373,946 |
|
|
|
444,366 |
|
|
|
323,013 |
|
|
|
347,995 |
|
| Time deposits in other
financial institutions |
|
1,050 |
|
|
|
1,340 |
|
|
|
1,240 |
|
|
|
1,240 |
|
|
|
1,490 |
|
| Securities: |
|
|
|
|
|
|
|
|
|
|
Carried at fair value |
|
4,057,335 |
|
|
|
4,185,054 |
|
|
|
4,418,222 |
|
|
|
4,646,891 |
|
|
|
5,482,687 |
|
|
Held to maturity, at cost |
|
839,623 |
|
|
|
842,980 |
|
|
|
841,055 |
|
|
|
838,241 |
|
|
|
835,468 |
|
|
Other investments, at cost |
|
69,511 |
|
|
|
70,684 |
|
|
|
68,524 |
|
|
|
91,277 |
|
|
|
90,001 |
|
| Loans held for sale |
|
— |
|
|
|
348,761 |
|
|
|
352,744 |
|
|
|
5,071 |
|
|
|
6,262 |
|
| Loans: |
|
|
|
|
|
|
|
|
|
|
Held to maturity |
|
11,440,917 |
|
|
|
11,608,309 |
|
|
|
11,644,641 |
|
|
|
12,068,645 |
|
|
|
11,872,436 |
|
|
Allowance for credit losses |
|
(106,797 |
) |
|
|
(126,861 |
) |
|
|
(123,934 |
) |
|
|
(122,566 |
) |
|
|
(110,208 |
) |
| Loans, net |
|
11,334,120 |
|
|
|
11,481,448 |
|
|
|
11,520,707 |
|
|
|
11,946,079 |
|
|
|
11,762,228 |
|
| Premises, furniture and
equipment, net |
|
155,140 |
|
|
|
175,953 |
|
|
|
176,582 |
|
|
|
181,070 |
|
|
|
187,436 |
|
| Goodwill |
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
| Core deposit intangibles,
net |
|
14,157 |
|
|
|
15,501 |
|
|
|
16,923 |
|
|
|
18,415 |
|
|
|
20,026 |
|
| Cash surrender value on life
insurance |
|
199,998 |
|
|
|
199,036 |
|
|
|
197,671 |
|
|
|
197,085 |
|
|
|
196,694 |
|
| Other real estate, net |
|
6,805 |
|
|
|
7,533 |
|
|
|
2,590 |
|
|
|
12,548 |
|
|
|
14,362 |
|
| Other assets |
|
430,155 |
|
|
|
534,429 |
|
|
|
516,198 |
|
|
|
574,772 |
|
|
|
609,139 |
|
| Total
Assets |
$ |
18,272,293 |
|
|
$ |
18,812,670 |
|
|
$ |
19,132,827 |
|
|
$ |
19,411,707 |
|
|
$ |
20,129,793 |
|
| Liabilities and
Equity |
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
| Deposits: |
|
|
|
|
|
|
|
|
|
| Demand |
$ |
4,009,218 |
|
|
$ |
4,244,169 |
|
|
$ |
4,264,390 |
|
|
$ |
4,500,304 |
|
|
$ |
4,792,813 |
|
| Savings |
|
8,926,192 |
|
|
|
8,470,416 |
|
|
|
8,669,221 |
|
|
|
8,805,597 |
|
|
|
8,754,911 |
|
| Time |
|
2,017,806 |
|
|
|
2,242,005 |
|
|
|
2,368,555 |
|
|
|
2,895,813 |
|
|
|
3,553,269 |
|
| Total deposits |
|
14,953,216 |
|
|
|
14,956,590 |
|
|
|
15,302,166 |
|
|
|
16,201,714 |
|
|
|
17,100,993 |
|
| Deposits held for sale |
|
— |
|
|
|
538,308 |
|
|
|
596,328 |
|
|
|
— |
|
|
|
— |
|
| Borrowings |
|
546,219 |
|
|
|
694,909 |
|
|
|
650,033 |
|
|
|
622,255 |
|
|
|
392,634 |
|
| Term debt |
|
373,324 |
|
|
|
372,988 |
|
|
|
372,652 |
|
|
|
372,396 |
|
|
|
372,059 |
|
| Accrued expenses and other
liabilities |
|
259,161 |
|
|
|
222,025 |
|
|
|
232,815 |
|
|
|
282,225 |
|
|
|
438,577 |
|
| Total
Liabilities |
|
16,131,920 |
|
|
|
16,784,820 |
|
|
|
17,153,994 |
|
|
|
17,478,590 |
|
|
|
18,304,263 |
|
| Stockholders'
Equity |
|
|
|
|
|
|
|
|
|
| Preferred equity |
|
110,705 |
|
|
|
110,705 |
|
|
|
110,705 |
|
|
|
110,705 |
|
|
|
110,705 |
|
| Common stock |
|
42,884 |
|
|
|
42,852 |
|
|
|
42,784 |
|
|
|
42,688 |
|
|
|
42,656 |
|
| Capital surplus |
|
1,098,837 |
|
|
|
1,096,619 |
|
|
|
1,093,207 |
|
|
|
1,090,740 |
|
|
|
1,088,267 |
|
| Retained earnings |
|
1,252,247 |
|
|
|
1,203,092 |
|
|
|
1,178,330 |
|
|
|
1,141,501 |
|
|
|
1,226,740 |
|
| Accumulated other
comprehensive income/(loss) |
|
(364,300 |
) |
|
|
(425,418 |
) |
|
|
(446,193 |
) |
|
|
(452,517 |
) |
|
|
(642,838 |
) |
| Total
Equity |
|
2,140,373 |
|
|
|
2,027,850 |
|
|
|
1,978,833 |
|
|
|
1,933,117 |
|
|
|
1,825,530 |
|
| Total Liabilities and
Equity |
$ |
18,272,293 |
|
|
$ |
18,812,670 |
|
|
$ |
19,132,827 |
|
|
$ |
19,411,707 |
|
|
$ |
20,129,793 |
|
| HEARTLAND
FINANCIAL USA, INC. |
|
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
|
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA |
| |
For the Quarter Ended |
|
|
9/30/2024 |
|
6/30/2024 |
|
3/31/2024 |
|
12/31/2023 |
|
9/30/2023 |
|
Average Balances |
|
|
|
|
|
|
|
|
|
|
Assets |
$ |
18,439,910 |
|
|
$ |
19,043,362 |
|
|
$ |
19,296,638 |
|
|
$ |
19,667,825 |
|
|
$ |
20,207,920 |
|
| Loans, net of unearned |
|
11,584,999 |
|
|
|
12,010,289 |
|
|
|
12,021,930 |
|
|
|
11,938,272 |
|
|
|
11,800,064 |
|
| Total deposits |
|
15,148,944 |
|
|
|
15,562,920 |
|
|
|
16,042,402 |
|
|
|
16,709,394 |
|
|
|
17,507,813 |
|
|
Customer deposits |
|
14,347,965 |
|
|
|
14,768,407 |
|
|
|
14,816,652 |
|
|
|
14,969,948 |
|
|
|
14,699,235 |
|
| Earning assets |
|
16,838,131 |
|
|
|
17,331,435 |
|
|
|
17,597,068 |
|
|
|
17,853,957 |
|
|
|
18,439,010 |
|
| Interest-bearing
liabilities |
|
11,986,220 |
|
|
|
12,461,957 |
|
|
|
12,607,745 |
|
|
|
12,721,680 |
|
|
|
13,158,631 |
|
| Common equity |
|
1,962,334 |
|
|
|
1,863,236 |
|
|
|
1,832,959 |
|
|
|
1,729,086 |
|
|
|
1,746,818 |
|
| Total stockholders'
equity |
|
2,073,039 |
|
|
|
1,973,941 |
|
|
|
1,943,664 |
|
|
|
1,839,791 |
|
|
|
1,857,523 |
|
| Tangible common equity
(non-GAAP)(1) |
|
1,371,515 |
|
|
|
1,271,046 |
|
|
|
1,239,313 |
|
|
|
1,133,888 |
|
|
|
1,149,992 |
|
| |
|
|
|
|
|
|
|
|
|
| Key Performance
Ratios |
|
|
|
|
|
|
|
|
|
| Annualized return on average
assets |
|
1.38 |
% |
|
|
0.84 |
% |
|
|
1.08 |
% |
|
(1.42 |
)% |
|
|
0.94 |
% |
| Adjusted annualized return on
average assets (non-GAAP)(1) |
|
1.14 |
|
|
|
1.09 |
|
|
|
1.13 |
|
|
|
0.96 |
|
|
|
0.98 |
|
| Annualized return on average
common equity (GAAP) |
|
12.60 |
|
|
|
8.14 |
|
|
|
10.90 |
|
|
|
(16.61 |
) |
|
|
10.47 |
|
| Adjusted annualized return on
average common equity (non-GAAP)(1) |
|
10.27 |
|
|
|
10.71 |
|
|
|
11.50 |
|
|
|
10.46 |
|
|
|
10.92 |
|
| Annualized return on average
tangible common equity (non-GAAP)(1) |
|
18.32 |
|
|
|
12.28 |
|
|
|
16.49 |
|
|
|
(24.89 |
) |
|
|
16.32 |
|
| Adjusted annualized return on
average tangible common equity (non-GAAP)(1) |
|
14.98 |
|
|
|
16.05 |
|
|
|
17.38 |
|
|
|
16.38 |
|
|
|
17.02 |
|
| Annualized ratio of net
charge-offs/(recoveries) to average loans |
|
0.99 |
|
|
|
0.23 |
|
|
|
0.08 |
|
|
|
0.01 |
|
|
|
0.12 |
|
| Annualized net interest margin
(GAAP) |
|
3.73 |
|
|
|
3.68 |
|
|
|
3.52 |
|
|
|
3.47 |
|
|
|
3.14 |
|
| Annualized net interest
margin, fully tax-equivalent (non-GAAP)(1) |
|
3.78 |
|
|
|
3.73 |
|
|
|
3.57 |
|
|
|
3.52 |
|
|
|
3.18 |
|
| Annualized cost of
deposits |
|
2.18 |
|
|
|
2.08 |
|
|
|
2.11 |
|
|
|
2.09 |
|
|
|
2.10 |
|
| Efficiency ratio (GAAP) |
|
48.58 |
|
|
|
65.69 |
|
|
|
62.46 |
|
|
|
293.86 |
|
|
|
63.77 |
|
| Adjusted efficiency ratio,
fully tax-equivalent (non-GAAP)(1) |
|
57.98 |
|
|
|
57.73 |
|
|
|
58.77 |
|
|
|
59.31 |
|
|
|
59.95 |
|
| Annualized ratio of total
noninterest expenses to average assets (GAAP) |
|
1.85 |
|
|
|
2.46 |
|
|
|
2.37 |
|
|
|
2.63 |
|
|
|
2.18 |
|
| Annualized ratio of core
expenses to average assets (non-GAAP)(1) |
|
2.35 |
|
|
|
2.30 |
|
|
|
2.25 |
|
|
|
2.23 |
|
|
|
2.08 |
|
| |
|
|
|
|
|
|
|
|
|
| |
For the Quarter Ended
September 30, |
|
For the Nine Months Ended
September 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Average Balances |
|
|
|
|
|
|
|
| Assets |
$ |
18,439,910 |
|
|
$ |
20,207,920 |
|
|
$ |
18,924,862 |
|
|
$ |
20,182,808 |
|
| Loans, net of unearned |
|
11,584,999 |
|
|
|
11,800,064 |
|
|
|
11,871,358 |
|
|
|
11,602,741 |
|
| Total deposits |
|
15,148,944 |
|
|
|
17,507,813 |
|
|
|
15,583,165 |
|
|
|
17,567,614 |
|
|
Customer deposits |
|
14,347,965 |
|
|
|
14,699,235 |
|
|
|
14,642,347 |
|
|
|
14,778,030 |
|
| Earning assets |
|
16,838,131 |
|
|
|
18,439,010 |
|
|
|
17,254,023 |
|
|
|
18,451,907 |
|
| Interest-bearing
liabilities |
|
11,986,220 |
|
|
|
13,158,631 |
|
|
|
12,350,640 |
|
|
|
12,985,665 |
|
| Common equity |
|
1,962,334 |
|
|
|
1,746,818 |
|
|
|
1,886,454 |
|
|
|
1,710,230 |
|
| Total stockholders'
equity |
|
2,073,039 |
|
|
|
1,857,523 |
|
|
|
1,997,159 |
|
|
|
1,820,935 |
|
| Tangible common equity
(non-GAAP)(1) |
|
1,371,515 |
|
|
|
1,149,992 |
|
|
|
1,294,241 |
|
|
|
1,111,724 |
|
| |
|
|
|
|
|
|
|
| Key Performance
Ratios |
|
|
|
|
|
|
|
| Annualized return on average
assets |
|
1.38 |
% |
|
|
0.94 |
% |
|
|
1.10 |
% |
|
|
1.00 |
% |
| Adjusted annualized return on
average assets (non-GAAP)(1) |
|
1.14 |
|
|
|
0.98 |
|
|
|
1.12 |
|
|
|
1.02 |
|
| Annualized return on average
common equity (GAAP) |
|
12.60 |
|
|
|
10.47 |
|
|
|
10.59 |
|
|
|
11.28 |
|
| Adjusted annualized return on
average common equity (non-GAAP)(1) |
|
10.27 |
|
|
|
10.92 |
|
|
|
10.81 |
|
|
|
11.60 |
|
| Annualized return on average
tangible common equity (non-GAAP)(1) |
|
18.32 |
|
|
|
16.32 |
|
|
|
15.77 |
|
|
|
17.82 |
|
| Adjusted annualized return on
average tangible common equity (non-GAAP)(1) |
|
14.98 |
|
|
|
17.02 |
|
|
|
16.09 |
|
|
|
18.31 |
|
| Annualized ratio of net
charge-offs/(recoveries) to average loans |
|
0.99 |
|
|
|
0.12 |
|
|
|
0.43 |
|
|
|
0.14 |
|
| Annualized net interest margin
(GAAP) |
|
3.73 |
|
|
|
3.14 |
|
|
|
3.65 |
|
|
|
3.23 |
|
| Annualized net interest
margin, fully tax-equivalent (non-GAAP)(1) |
|
3.78 |
|
|
|
3.18 |
|
|
|
3.69 |
|
|
|
3.27 |
|
| Annualized cost of
deposits |
|
2.18 |
|
|
|
2.10 |
|
|
|
2.12 |
|
|
|
1.76 |
|
| Efficiency ratio (GAAP) |
|
48.58 |
|
|
|
63.77 |
|
|
|
58.94 |
|
|
|
61.86 |
|
| Adjusted efficiency ratio,
fully tax-equivalent (non-GAAP)(1) |
|
57.98 |
|
|
|
59.95 |
|
|
|
58.16 |
|
|
|
58.98 |
|
| Annualized ratio of total
noninterest expenses to average assets (GAAP) |
|
1.85 |
|
|
|
2.18 |
|
|
|
2.23 |
|
|
|
2.20 |
|
| Annualized ratio of core
expenses to average assets (non-GAAP)(1) |
|
2.35 |
|
|
|
2.08 |
|
|
|
2.30 |
|
|
|
2.12 |
|
| |
|
|
|
|
|
|
|
|
(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 |
|
|
9/30/2024 |
|
6/30/2024 |
|
3/31/2024 |
|
12/31/2023 |
|
9/30/2023 |
|
Common Share Data |
|
|
|
|
|
|
|
|
|
|
Book value per common share |
$ |
47.33 |
|
|
$ |
44.74 |
|
|
$ |
43.66 |
|
|
$ |
42.69 |
|
|
$ |
40.20 |
|
| Tangible book value per common
share (non-GAAP)(1) |
|
33.57 |
|
|
|
30.94 |
|
|
|
29.81 |
|
|
|
28.77 |
|
|
|
26.23 |
|
| ASC 320 effect on book value
per common share |
|
(8.78 |
) |
|
|
(10.82 |
) |
|
|
(11.18 |
) |
|
|
(11.00 |
) |
|
|
(16.27 |
) |
| |
|
|
|
|
|
|
|
|
|
| Common shares outstanding, net
of treasury stock |
|
42,883,865 |
|
|
|
42,852,180 |
|
|
|
42,783,670 |
|
|
|
42,688,008 |
|
|
|
42,656,303 |
|
| |
|
|
|
|
|
|
|
|
|
| Capital
Ratios |
|
|
|
|
|
|
|
|
|
| Common equity to total
assets |
|
11.11 |
% |
|
|
10.19 |
% |
|
|
9.76 |
% |
|
|
9.39 |
% |
|
|
8.52 |
% |
| Tangible common equity ratio
(non-GAAP)(1) |
|
8.14 |
|
|
|
7.28 |
|
|
|
6.88 |
|
|
|
6.53 |
|
|
|
5.73 |
|
| Tier 1 leverage ratio |
|
10.77 |
|
|
|
10.13 |
|
|
|
9.84 |
|
|
|
9.44 |
|
|
|
9.59 |
|
| Common equity tier 1
ratio(2) |
|
12.66 |
|
|
|
11.68 |
|
|
|
11.40 |
|
|
|
10.97 |
|
|
|
11.37 |
|
| Total risk based capital
ratio(2) |
|
16.34 |
|
|
|
15.32 |
|
|
|
14.99 |
|
|
|
14.53 |
|
|
|
14.90 |
|
| |
|
|
|
|
|
|
|
|
|
| Other Selected Trend
Information |
|
|
|
|
|
|
|
|
|
| Effective tax rate |
|
24.25 |
% |
|
|
23.12 |
% |
|
|
23.17 |
% |
|
|
27.97 |
% |
|
|
21.89 |
% |
| Full time equivalent
employees |
|
1,725 |
|
|
|
1,843 |
|
|
|
1,888 |
|
|
|
1,970 |
|
|
|
1,965 |
|
| |
|
|
|
|
|
|
|
|
|
| Loans Held to
Maturity |
|
|
|
|
|
|
|
|
|
| Commercial and industrial |
$ |
3,503,093 |
|
|
$ |
3,541,239 |
|
|
$ |
3,545,051 |
|
|
$ |
3,652,047 |
|
|
$ |
3,591,809 |
|
| Paycheck Protection Program
("PPP") |
|
1,582 |
|
|
|
1,864 |
|
|
|
2,172 |
|
|
|
2,777 |
|
|
|
3,750 |
|
| Owner occupied commercial real
estate |
|
2,489,697 |
|
|
|
2,555,964 |
|
|
|
2,545,033 |
|
|
|
2,638,175 |
|
|
|
2,429,659 |
|
|
Commercial and business lending |
|
5,994,372 |
|
|
|
6,099,067 |
|
|
|
6,092,256 |
|
|
|
6,292,999 |
|
|
|
6,025,218 |
|
| Non-owner occupied commercial
real estate |
|
2,455,396 |
|
|
|
2,434,258 |
|
|
|
2,495,068 |
|
|
|
2,553,711 |
|
|
|
2,656,358 |
|
| Real estate construction |
|
1,119,922 |
|
|
|
1,082,726 |
|
|
|
1,041,583 |
|
|
|
1,011,716 |
|
|
|
1,029,554 |
|
|
Commercial real estate lending |
|
3,575,318 |
|
|
|
3,516,984 |
|
|
|
3,536,651 |
|
|
|
3,565,427 |
|
|
|
3,685,912 |
|
|
Total commercial lending |
|
9,569,690 |
|
|
|
9,616,051 |
|
|
|
9,628,907 |
|
|
|
9,858,426 |
|
|
|
9,711,130 |
|
| Agricultural and agricultural
real estate |
|
701,211 |
|
|
|
802,958 |
|
|
|
809,876 |
|
|
|
919,184 |
|
|
|
842,116 |
|
| Residential mortgage |
|
707,984 |
|
|
|
733,401 |
|
|
|
756,021 |
|
|
|
797,829 |
|
|
|
813,803 |
|
| Consumer |
|
462,032 |
|
|
|
455,899 |
|
|
|
449,837 |
|
|
|
493,206 |
|
|
|
505,387 |
|
| Total loans held to
maturity |
$ |
11,440,917 |
|
|
$ |
11,608,309 |
|
|
$ |
11,644,641 |
|
|
$ |
12,068,645 |
|
|
$ |
11,872,436 |
|
| |
|
|
|
|
|
|
|
|
|
| Total unfunded loan
commitments |
$ |
3,941,268 |
|
|
$ |
4,381,565 |
|
|
$ |
4,537,718 |
|
|
$ |
4,625,768 |
|
|
$ |
4,813,798 |
|
| |
|
|
|
|
|
|
|
|
|
| Deposits |
|
|
|
|
|
|
|
|
|
| Demand-customer |
$ |
4,009,218 |
|
|
$ |
4,244,169 |
|
|
$ |
4,264,390 |
|
|
$ |
4,500,304 |
|
|
$ |
4,792,813 |
|
| Savings-customer |
|
8,713,228 |
|
|
|
8,151,794 |
|
|
|
8,269,956 |
|
|
|
8,411,240 |
|
|
|
8,190,430 |
|
| Savings-wholesale and
institutional |
|
212,964 |
|
|
|
318,622 |
|
|
|
399,265 |
|
|
|
394,357 |
|
|
|
564,481 |
|
|
Total savings |
|
8,926,192 |
|
|
|
8,470,416 |
|
|
|
8,669,221 |
|
|
|
8,805,597 |
|
|
|
8,754,911 |
|
| Time-customer |
|
1,628,856 |
|
|
|
1,737,723 |
|
|
|
1,734,971 |
|
|
|
1,944,884 |
|
|
|
1,814,335 |
|
| Time-wholesale |
|
388,950 |
|
|
|
504,282 |
|
|
|
633,584 |
|
|
|
950,929 |
|
|
|
1,738,934 |
|
|
Total time |
|
2,017,806 |
|
|
|
2,242,005 |
|
|
|
2,368,555 |
|
|
|
2,895,813 |
|
|
|
3,553,269 |
|
| Total
deposits |
$ |
14,953,216 |
|
|
$ |
14,956,590 |
|
|
$ |
15,302,166 |
|
|
$ |
16,201,714 |
|
|
$ |
17,100,993 |
|
| |
|
|
|
|
|
|
|
|
|
| Total customer deposits |
$ |
14,351,302 |
|
|
$ |
14,133,686 |
|
|
$ |
14,269,317 |
|
|
$ |
14,856,428 |
|
|
$ |
14,797,578 |
|
| Total wholesale and
institutional deposits |
|
601,914 |
|
|
|
822,904 |
|
|
|
1,032,849 |
|
|
|
1,345,286 |
|
|
|
2,303,415 |
|
| Total
deposits |
$ |
14,953,216 |
|
|
$ |
14,956,590 |
|
|
$ |
15,302,166 |
|
|
$ |
16,201,714 |
|
|
$ |
17,100,993 |
|
| |
|
|
|
|
|
|
|
|
|
|
(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. |
|
(2) September 30, 2024 calculation is preliminary. |
| HEARTLAND
FINANCIAL USA, INC. |
|
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
| DOLLARS
IN THOUSANDS, EXCEPT PER SHARE DATA |
|
|
As of and for the Quarter Ended |
|
|
9/30/2024 |
|
6/30/2024 |
|
3/31/2024 |
|
12/31/2023 |
|
9/30/2023 |
|
Allowance for Credit Losses-Loans |
|
|
|
|
|
|
|
|
|
|
Balance, beginning of period |
$ |
126,861 |
|
|
$ |
123,934 |
|
|
$ |
122,566 |
|
|
$ |
110,208 |
|
|
$ |
111,198 |
|
| Provision for credit
losses |
|
8,871 |
|
|
|
9,737 |
|
|
|
3,668 |
|
|
|
12,750 |
|
|
|
2,672 |
|
| Charge-offs |
|
(32,137 |
) |
|
|
(7,388 |
) |
|
|
(4,093 |
) |
|
|
(3,886 |
) |
|
|
(3,964 |
) |
| Recoveries |
|
3,202 |
|
|
|
578 |
|
|
|
1,793 |
|
|
|
3,494 |
|
|
|
302 |
|
| Balance, end of
period |
$ |
106,797 |
|
|
$ |
126,861 |
|
|
$ |
123,934 |
|
|
$ |
122,566 |
|
|
$ |
110,208 |
|
| |
|
|
|
|
|
|
|
|
|
| Allowance for Unfunded
Commitments |
|
|
|
|
|
|
|
|
|
| Balance, beginning of
period |
$ |
13,057 |
|
|
$ |
13,786 |
|
|
$ |
16,468 |
|
|
$ |
17,480 |
|
|
$ |
18,636 |
|
| Provision for credit
losses |
|
(2,595 |
) |
|
|
(729 |
) |
|
|
(2,682 |
) |
|
|
(1,012 |
) |
|
|
(1,156 |
) |
| Balance, end of
period |
$ |
10,462 |
|
|
$ |
13,057 |
|
|
$ |
13,786 |
|
|
$ |
16,468 |
|
|
$ |
17,480 |
|
| |
|
|
|
|
|
|
|
|
|
| Allowance for lending
related credit losses |
$ |
117,259 |
|
|
$ |
139,918 |
|
|
$ |
137,720 |
|
|
$ |
139,034 |
|
|
$ |
127,688 |
|
| |
|
|
|
|
|
|
|
|
|
| Provision for Credit
Losses |
|
|
|
|
|
|
|
|
|
| Provision for credit
losses-loans |
$ |
8,871 |
|
|
$ |
9,737 |
|
|
$ |
3,668 |
|
|
$ |
12,750 |
|
|
$ |
2,672 |
|
| Provision for credit
losses-unfunded commitments |
|
(2,595 |
) |
|
|
(729 |
) |
|
|
(2,682 |
) |
|
|
(1,012 |
) |
|
|
(1,156 |
) |
| Total provision
(benefit) for credit losses |
$ |
6,276 |
|
|
$ |
9,008 |
|
|
$ |
986 |
|
|
$ |
11,738 |
|
|
$ |
1,516 |
|
| |
|
|
|
|
|
|
|
|
|
| Asset
Quality |
|
|
|
|
|
|
|
|
|
| Nonaccrual loans |
$ |
69,115 |
|
|
$ |
103,123 |
|
|
$ |
94,800 |
|
|
$ |
95,426 |
|
|
$ |
51,304 |
|
| Loans past due ninety days or
more |
|
832 |
|
|
|
663 |
|
|
|
611 |
|
|
|
2,507 |
|
|
|
511 |
|
| Other real estate owned |
|
6,805 |
|
|
|
7,533 |
|
|
|
2,590 |
|
|
|
12,548 |
|
|
|
14,362 |
|
| Other repossessed assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
| Total nonperforming
assets |
$ |
76,752 |
|
|
$ |
111,319 |
|
|
$ |
98,001 |
|
|
$ |
110,481 |
|
|
$ |
66,178 |
|
| |
|
|
|
|
|
|
|
|
|
| Nonperforming Assets
Activity |
|
|
|
|
|
|
|
|
|
| Balance, beginning of
period |
$ |
111,319 |
|
|
$ |
98,001 |
|
|
$ |
110,481 |
|
|
$ |
66,178 |
|
|
$ |
66,097 |
|
| Net loan (charge-offs)
recoveries |
|
(28,935 |
) |
|
|
(6,810 |
) |
|
|
(2,300 |
) |
|
|
(392 |
) |
|
|
(3,662 |
) |
| New nonperforming loans |
|
25,441 |
|
|
|
48,346 |
|
|
|
5,470 |
|
|
|
61,193 |
|
|
|
19,295 |
|
| Reduction of nonperforming
loans(1) |
|
(30,240 |
) |
|
|
(28,050 |
) |
|
|
(5,692 |
) |
|
|
(14,278 |
) |
|
|
(14,691 |
) |
| OREO/Repossessed assets sales
proceeds |
|
(833 |
) |
|
|
(168 |
) |
|
|
(9,958 |
) |
|
|
(2,220 |
) |
|
|
(861 |
) |
| Balance, end of
period |
$ |
76,752 |
|
|
$ |
111,319 |
|
|
$ |
98,001 |
|
|
$ |
110,481 |
|
|
$ |
66,178 |
|
| |
|
|
|
|
|
|
|
|
|
| Asset Quality
Ratios |
|
|
|
|
|
|
|
|
|
| Ratio of nonperforming loans
to total loans |
|
0.61 |
% |
|
|
0.89 |
% |
|
|
0.82 |
% |
|
|
0.81 |
% |
|
|
0.44 |
% |
| Ratio of nonperforming assets
to total assets |
|
0.42 |
|
|
|
0.59 |
|
|
|
0.51 |
|
|
|
0.57 |
|
|
|
0.33 |
|
| Annualized ratio of net loan
charge-offs (recoveries) to average loans |
|
0.99 |
|
|
|
0.23 |
|
|
|
0.08 |
|
|
|
0.01 |
|
|
|
0.12 |
|
| Allowance for loan credit
losses as a percent of loans |
|
0.93 |
|
|
|
1.09 |
|
|
|
1.06 |
|
|
|
1.02 |
|
|
|
0.93 |
|
| Allowance for lending related
credit losses as a percent of loans |
|
1.02 |
|
|
|
1.21 |
|
|
|
1.18 |
|
|
|
1.15 |
|
|
|
1.08 |
|
| Allowance for loan credit
losses as a percent of nonperforming loans |
|
152.68 |
|
|
|
122.23 |
|
|
|
129.89 |
|
|
|
125.15 |
|
|
|
212.70 |
|
| Loans delinquent 30-89 days as
a percent of total loans |
|
0.26 |
|
|
|
0.25 |
|
|
|
0.31 |
|
|
|
0.09 |
|
|
|
0.12 |
|
| |
|
|
|
|
|
|
|
|
|
| (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 |
| |
September 30, 2024 |
|
June 30, 2024 |
|
September 30, 2023 |
|
|
Average
Balance |
|
Interest |
|
Rate |
|
Average
Balance |
|
Interest |
|
Rate |
|
Average
Balance |
|
Interest |
|
Rate |
|
Earning Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
$ |
4,254,529 |
|
|
$ |
51,116 |
|
4.78 |
% |
|
$ |
4,490,407 |
|
|
$ |
47,381 |
|
4.24 |
% |
|
$ |
5,726,057 |
|
|
$ |
54,800 |
|
3.80 |
% |
| Nontaxable(1) |
|
768,483 |
|
|
|
7,313 |
|
3.79 |
|
|
|
759,234 |
|
|
|
7,383 |
|
3.91 |
|
|
|
881,162 |
|
|
|
8,085 |
|
3.64 |
|
| Total securities |
|
5,023,012 |
|
|
|
58,429 |
|
4.63 |
|
|
|
5,249,641 |
|
|
|
54,764 |
|
4.20 |
|
|
|
6,607,219 |
|
|
|
62,885 |
|
3.78 |
|
Interest on deposits with
other banks and
short-term investments |
|
355,394 |
|
|
|
4,193 |
|
4.69 |
|
|
|
194,824 |
|
|
|
3,045 |
|
6.29 |
|
|
|
142,301 |
|
|
|
1,651 |
|
4.60 |
|
| Federal funds sold |
|
— |
|
|
|
— |
|
— |
|
|
|
— |
|
|
|
— |
|
— |
|
|
|
152 |
|
|
|
3 |
|
7.83 |
|
| Loans:(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Commercial and
industrial(1) |
|
3,531,206 |
|
|
|
65,972 |
|
7.43 |
|
|
|
3,638,004 |
|
|
|
69,469 |
|
7.68 |
|
|
|
3,610,677 |
|
|
|
63,001 |
|
6.92 |
|
| PPP loans |
|
1,759 |
|
|
|
5 |
|
1.13 |
|
|
|
2,242 |
|
|
|
7 |
|
1.26 |
|
|
|
3,948 |
|
|
|
11 |
|
1.11 |
|
| Owner occupied commercial real
estate |
|
2,527,006 |
|
|
|
35,189 |
|
5.54 |
|
|
|
2,615,504 |
|
|
|
37,028 |
|
5.69 |
|
|
|
2,412,501 |
|
|
|
30,127 |
|
4.95 |
|
| Non-owner occupied commercial
real estate |
|
2,474,036 |
|
|
|
39,536 |
|
6.36 |
|
|
|
2,519,346 |
|
|
|
39,272 |
|
6.27 |
|
|
|
2,586,011 |
|
|
|
38,779 |
|
5.95 |
|
| Real estate construction |
|
1,106,387 |
|
|
|
22,878 |
|
8.23 |
|
|
|
1,093,399 |
|
|
|
21,770 |
|
8.01 |
|
|
|
1,027,544 |
|
|
|
19,448 |
|
7.51 |
|
| Agricultural and agricultural
real estate |
|
757,745 |
|
|
|
11,536 |
|
6.06 |
|
|
|
879,707 |
|
|
|
13,390 |
|
6.12 |
|
|
|
822,957 |
|
|
|
12,582 |
|
6.07 |
|
| Residential real estate |
|
725,901 |
|
|
|
9,110 |
|
4.99 |
|
|
|
776,821 |
|
|
|
9,454 |
|
4.89 |
|
|
|
827,402 |
|
|
|
9,482 |
|
4.55 |
|
| Consumer |
|
460,959 |
|
|
|
8,956 |
|
7.73 |
|
|
|
485,266 |
|
|
|
9,421 |
|
7.81 |
|
|
|
509,024 |
|
|
|
9,615 |
|
7.49 |
|
| Less: allowance for credit
losses |
|
(125,274 |
) |
|
|
— |
|
— |
|
|
|
(123,319 |
) |
|
|
— |
|
— |
|
|
|
(110,726 |
) |
|
|
— |
|
— |
|
| Net loans |
|
11,459,725 |
|
|
|
193,182 |
|
6.71 |
|
|
|
11,886,970 |
|
|
|
199,811 |
|
6.76 |
|
|
|
11,689,338 |
|
|
|
183,045 |
|
6.21 |
|
| Total earning
assets |
|
16,838,131 |
|
|
|
255,804 |
|
6.04 |
% |
|
|
17,331,435 |
|
|
|
257,620 |
|
5.98 |
% |
|
|
18,439,010 |
|
|
|
247,584 |
|
5.33 |
% |
| Nonearning Assets |
|
1,601,779 |
|
|
|
|
|
|
|
1,711,927 |
|
|
|
|
|
|
|
1,768,910 |
|
|
|
|
|
| Total
Assets |
$ |
18,439,910 |
|
|
|
|
|
|
$ |
19,043,362 |
|
|
|
|
|
|
$ |
20,207,920 |
|
|
|
|
|
| Interest-bearing
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Savings |
$ |
8,842,494 |
|
|
$ |
59,307 |
|
2.67 |
% |
|
$ |
8,834,746 |
|
|
$ |
55,440 |
|
2.52 |
% |
|
$ |
8,737,581 |
|
|
$ |
49,195 |
|
2.23 |
% |
| Time deposits |
|
2,189,861 |
|
|
|
23,669 |
|
4.30 |
|
|
|
2,372,653 |
|
|
|
25,059 |
|
4.25 |
|
|
|
3,945,371 |
|
|
|
43,549 |
|
4.38 |
|
| Borrowings |
|
580,707 |
|
|
|
7,378 |
|
5.05 |
|
|
|
881,738 |
|
|
|
10,825 |
|
4.94 |
|
|
|
103,567 |
|
|
|
1,167 |
|
4.47 |
|
| Term debt |
|
373,158 |
|
|
|
5,543 |
|
5.91 |
|
|
|
372,820 |
|
|
|
5,564 |
|
6.00 |
|
|
|
372,112 |
|
|
|
5,765 |
|
6.15 |
|
| Total interest-bearing
liabilities |
|
11,986,220 |
|
|
|
95,897 |
|
3.18 |
% |
|
|
12,461,957 |
|
|
|
96,888 |
|
3.13 |
% |
|
|
13,158,631 |
|
|
|
99,676 |
|
3.01 |
% |
| Noninterest-bearing
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Noninterest-bearing
deposits |
|
4,116,589 |
|
|
|
|
|
|
|
4,355,521 |
|
|
|
|
|
|
|
4,824,861 |
|
|
|
|
|
| Accrued interest and other
liabilities |
|
264,062 |
|
|
|
|
|
|
|
251,943 |
|
|
|
|
|
|
|
366,905 |
|
|
|
|
|
| Total
noninterest-bearing liabilities |
|
4,380,651 |
|
|
|
|
|
|
|
4,607,464 |
|
|
|
|
|
|
|
5,191,766 |
|
|
|
|
|
| Stockholders'
Equity |
|
2,073,039 |
|
|
|
|
|
|
|
1,973,941 |
|
|
|
|
|
|
|
1,857,523 |
|
|
|
|
|
| Total Liabilities and
Stockholders' Equity |
$ |
18,439,910 |
|
|
|
|
|
|
$ |
19,043,362 |
|
|
|
|
|
|
$ |
20,207,920 |
|
|
|
|
|
Net interest income,
fully tax-equivalent
(non-GAAP)(1)(3) |
|
|
$ |
159,907 |
|
|
|
|
|
$ |
160,732 |
|
|
|
|
|
$ |
147,908 |
|
|
| Net interest
spread(1) |
|
|
|
|
2.86 |
% |
|
|
|
|
|
2.85 |
% |
|
|
|
|
|
2.32 |
% |
Net interest income,
fully tax-equivalent
(non-GAAP)(1)(3) to
total earning assets |
|
|
|
|
3.78 |
% |
|
|
|
|
|
3.73 |
% |
|
|
|
|
|
3.18 |
% |
| Interest-bearing liabilities
to earning assets |
|
71.18 |
% |
|
|
|
|
|
|
71.90 |
% |
|
|
|
|
|
|
71.36 |
% |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (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 Nine Months Ended |
| |
September 30, 2024 |
|
September 30, 2023 |
|
|
Average
Balance |
|
Interest |
|
Rate |
|
Average
Balance |
|
Interest |
|
Rate |
|
Earning Assets |
|
|
|
|
|
|
|
|
|
|
|
| Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
$ |
4,469,258 |
|
|
$ |
145,511 |
|
4.35 |
% |
|
$ |
5,927,026 |
|
|
$ |
168,948 |
|
3.81 |
% |
|
Nontaxable(1) |
|
768,782 |
|
|
|
22,079 |
|
3.84 |
|
|
|
899,613 |
|
|
|
23,611 |
|
3.51 |
|
| Total securities |
|
5,238,040 |
|
|
|
167,590 |
|
4.27 |
|
|
|
6,826,639 |
|
|
|
192,559 |
|
3.77 |
|
| Interest on deposits with
other banks and other short-term investments |
|
268,122 |
|
|
|
10,244 |
|
5.10 |
|
|
|
133,910 |
|
|
|
4,833 |
|
4.83 |
|
| Federal funds sold |
|
— |
|
|
|
— |
|
— |
|
|
|
51 |
|
|
|
3 |
|
7.86 |
|
| Loans:(2) |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial(1) |
|
3,603,668 |
|
|
|
202,426 |
|
7.50 |
|
|
|
3,547,256 |
|
|
|
169,552 |
|
6.39 |
|
|
PPP loans |
|
2,195 |
|
|
|
19 |
|
1.16 |
|
|
|
6,718 |
|
|
|
61 |
|
1.21 |
|
|
Owner occupied commercial real estate |
|
2,583,886 |
|
|
|
107,734 |
|
5.57 |
|
|
|
2,355,545 |
|
|
|
84,927 |
|
4.82 |
|
|
Non-owner occupied commercial real estate |
|
2,514,452 |
|
|
|
118,657 |
|
6.30 |
|
|
|
2,459,965 |
|
|
|
105,111 |
|
5.71 |
|
|
Real estate construction |
|
1,087,280 |
|
|
|
65,497 |
|
8.05 |
|
|
|
1,051,298 |
|
|
|
56,107 |
|
7.14 |
|
|
Agricultural and agricultural real estate |
|
838,395 |
|
|
|
38,682 |
|
6.16 |
|
|
|
835,673 |
|
|
|
36,191 |
|
5.79 |
|
|
Residential mortgage |
|
764,515 |
|
|
|
28,699 |
|
5.01 |
|
|
|
840,143 |
|
|
|
28,138 |
|
4.48 |
|
|
Consumer |
|
476,967 |
|
|
|
27,578 |
|
7.72 |
|
|
|
506,143 |
|
|
|
26,925 |
|
7.11 |
|
|
Less: allowance for credit losses-loans |
|
(123,497 |
) |
|
|
— |
|
— |
|
|
|
(111,434 |
) |
|
|
— |
|
— |
|
| Net loans |
|
11,747,861 |
|
|
|
589,292 |
|
6.70 |
|
|
|
11,491,307 |
|
|
|
507,012 |
|
5.90 |
|
| Total earning
assets |
|
17,254,023 |
|
|
|
767,126 |
|
5.94 |
% |
|
|
18,451,907 |
|
|
|
704,407 |
|
5.10 |
% |
| Nonearning Assets |
|
1,670,839 |
|
|
|
|
|
|
|
1,730,901 |
|
|
|
|
|
| Total
Assets |
$ |
18,924,862 |
|
|
|
|
|
|
$ |
20,182,808 |
|
|
|
|
|
| Interest-bearing
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
| Savings |
$ |
8,828,973 |
|
|
$ |
169,414 |
|
2.56 |
% |
|
$ |
9,130,980 |
|
|
$ |
128,372 |
|
1.88 |
% |
| Time deposits |
|
2,447,293 |
|
|
|
78,195 |
|
4.27 |
|
|
|
3,344,434 |
|
|
|
103,245 |
|
4.13 |
|
| Borrowings |
|
701,548 |
|
|
|
25,727 |
|
4.90 |
|
|
|
138,157 |
|
|
|
4,437 |
|
4.29 |
|
| Term debt |
|
372,826 |
|
|
|
16,956 |
|
6.08 |
|
|
|
372,094 |
|
|
|
16,756 |
|
6.02 |
|
| Total interest-bearing
liabilities |
|
12,350,640 |
|
|
|
290,292 |
|
3.14 |
% |
|
|
12,985,665 |
|
|
|
252,810 |
|
2.60 |
% |
| Noninterest-bearing
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
| Noninterest-bearing
deposits |
|
4,306,899 |
|
|
|
|
|
|
|
5,092,200 |
|
|
|
|
|
| Accrued interest and other
liabilities |
|
270,164 |
|
|
|
|
|
|
|
284,008 |
|
|
|
|
|
| Total
noninterest-bearing liabilities |
|
4,577,063 |
|
|
|
|
|
|
|
5,376,208 |
|
|
|
|
|
| Stockholders'
Equity |
|
1,997,159 |
|
|
|
|
|
|
|
1,820,935 |
|
|
|
|
|
| Total Liabilities and
Stockholders' Equity |
$ |
18,924,862 |
|
|
|
|
|
|
$ |
20,182,808 |
|
|
|
|
|
| Net interest income,
fully tax-equivalent
(non-GAAP)(1)(3) |
|
|
$ |
476,834 |
|
|
|
|
|
$ |
451,597 |
|
|
| Net interest
spread(1) |
|
|
|
|
2.80 |
% |
|
|
|
|
|
2.50 |
% |
| Net interest income,
fully tax-equivalent
(non-GAAP)(1)(3) to
total earning assets |
|
|
|
|
3.69 |
% |
|
|
|
|
|
3.27 |
% |
| Interest-bearing liabilities
to earning assets |
|
71.58 |
% |
|
|
|
|
|
|
70.38 |
% |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| (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 AND FULL TIME EQUIVALENT
EMPLOYEE DATA |
|
|
For the Quarter Ended |
|
|
9/30/2024 |
|
6/30/2024 |
|
3/31/2024 |
|
12/31/2023 |
|
9/30/2023 |
|
Reconciliation of Annualized Return on Average Tangible
Common Equity (non-GAAP) |
|
|
|
|
|
|
|
|
|
|
Earnings available to common stockholders (GAAP) |
$ |
62,140 |
|
|
$ |
37,730 |
|
|
$ |
49,694 |
|
|
$ |
(72,375 |
) |
|
$ |
46,078 |
|
|
Plus core deposit intangibles amortization, net of
tax(2) |
|
1,022 |
|
|
|
1,081 |
|
|
|
1,131 |
|
|
|
1,229 |
|
|
|
1,240 |
|
| Earnings available to
common stockholders excluding intangible amortization
(non-GAAP) |
$ |
63,162 |
|
|
$ |
38,811 |
|
|
$ |
50,825 |
|
|
$ |
(71,146 |
) |
|
$ |
47,318 |
|
| |
|
|
|
|
|
|
|
|
|
| Average common equity
(GAAP) |
$ |
1,962,334 |
|
|
$ |
1,863,236 |
|
|
$ |
1,832,959 |
|
|
$ |
1,729,086 |
|
|
$ |
1,746,818 |
|
|
Less average goodwill |
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
Less average core deposit intangibles, net |
|
14,814 |
|
|
|
16,185 |
|
|
|
17,641 |
|
|
|
19,193 |
|
|
|
20,821 |
|
| Average tangible
common equity (non-GAAP) |
$ |
1,371,515 |
|
|
$ |
1,271,046 |
|
|
$ |
1,239,313 |
|
|
$ |
1,133,888 |
|
|
$ |
1,149,992 |
|
| Annualized return on average
common equity (GAAP) |
|
12.60 |
% |
|
|
8.14 |
% |
|
|
10.90 |
% |
|
(16.61 |
)% |
|
|
10.47 |
% |
| Annualized return on average
tangible common equity (non-GAAP) |
|
18.32 |
% |
|
|
12.28 |
% |
|
|
16.49 |
% |
|
(24.89 |
)% |
|
|
16.32 |
% |
| |
|
|
|
|
|
|
|
|
|
| Reconciliation of
Annualized Net Interest Margin, Fully Tax-Equivalent
(non-GAAP) |
|
|
|
|
|
|
|
|
|
| Net Interest Income
(GAAP) |
$ |
157,897 |
|
|
$ |
158,741 |
|
|
$ |
154,215 |
|
|
$ |
156,137 |
|
|
$ |
145,756 |
|
|
Plus tax-equivalent adjustment(1) |
|
2,010 |
|
|
|
1,991 |
|
|
|
1,981 |
|
|
|
2,058 |
|
|
|
2,152 |
|
| Net interest income,
fully tax-equivalent (non-GAAP) |
$ |
159,907 |
|
|
$ |
160,732 |
|
|
$ |
156,196 |
|
|
$ |
158,195 |
|
|
$ |
147,908 |
|
| |
|
|
|
|
|
|
|
|
|
| Average earning assets |
$ |
16,838,131 |
|
|
$ |
17,331,435 |
|
|
$ |
17,597,068 |
|
|
$ |
17,853,957 |
|
|
$ |
18,439,010 |
|
| |
|
|
|
|
|
|
|
|
|
| Annualized net interest margin
(GAAP) |
|
3.73 |
% |
|
|
3.68 |
% |
|
|
3.52 |
% |
|
|
3.47 |
% |
|
|
3.14 |
% |
| Annualized net interest
margin, fully tax-equivalent (non-GAAP) |
|
3.78 |
|
|
|
3.73 |
|
|
|
3.57 |
|
|
|
3.52 |
|
|
|
3.18 |
|
| Net purchase accounting
discount amortization on loans included in annualized net interest
margin |
|
0.02 |
|
|
|
0.01 |
|
|
|
0.02 |
|
|
|
0.02 |
|
|
|
0.01 |
|
| Reconciliation of
Tangible Book Value Per Common Share (non-GAAP) |
|
|
|
|
|
|
|
|
|
|
Common equity (GAAP) |
$ |
2,029,668 |
|
|
$ |
1,917,145 |
|
|
$ |
1,868,128 |
|
|
$ |
1,822,412 |
|
|
$ |
1,714,825 |
|
|
Less goodwill |
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
Less core deposit intangibles, net |
|
14,157 |
|
|
|
15,501 |
|
|
|
16,923 |
|
|
|
18,415 |
|
|
|
20,026 |
|
| Tangible common equity
(non-GAAP) |
$ |
1,439,506 |
|
|
$ |
1,325,639 |
|
|
$ |
1,275,200 |
|
|
$ |
1,227,992 |
|
|
$ |
1,118,794 |
|
| |
|
|
|
|
|
|
|
|
|
| Common shares outstanding, net
of treasury stock |
|
42,883,865 |
|
|
|
42,852,180 |
|
|
|
42,783,670 |
|
|
|
42,688,008 |
|
|
|
42,656,303 |
|
| Common equity (book value) per
share (GAAP) |
$ |
47.33 |
|
|
$ |
44.74 |
|
|
$ |
43.66 |
|
|
$ |
42.69 |
|
|
$ |
40.20 |
|
| Tangible book value per common
share (non-GAAP) |
$ |
33.57 |
|
|
$ |
30.94 |
|
|
$ |
29.81 |
|
|
$ |
28.77 |
|
|
$ |
26.23 |
|
| |
|
|
|
|
|
|
|
|
|
| Reconciliation of
Tangible Common Equity Ratio (non-GAAP) |
|
|
|
|
|
|
|
|
|
| Tangible common equity
(non-GAAP) |
$ |
1,439,506 |
|
|
$ |
1,325,639 |
|
|
$ |
1,275,200 |
|
|
$ |
1,227,992 |
|
|
$ |
1,118,794 |
|
| |
|
|
|
|
|
|
|
|
|
| Total assets (GAAP) |
$ |
18,272,293 |
|
|
$ |
18,812,670 |
|
|
$ |
19,132,827 |
|
|
$ |
19,411,707 |
|
|
$ |
20,129,793 |
|
|
Less goodwill |
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
Less core deposit intangibles, net |
|
14,157 |
|
|
|
15,501 |
|
|
|
16,923 |
|
|
|
18,415 |
|
|
|
20,026 |
|
| Total tangible assets
(non-GAAP) |
$ |
17,682,131 |
|
|
$ |
18,221,164 |
|
|
$ |
18,539,899 |
|
|
$ |
18,817,287 |
|
|
$ |
19,533,762 |
|
| Tangible common equity ratio
(non-GAAP) |
|
8.14 |
% |
|
|
7.28 |
% |
|
|
6.88 |
% |
|
|
6.53 |
% |
|
|
5.73 |
% |
| |
|
|
|
|
|
|
|
|
|
| (1) Computed on a
tax-equivalent basis using an effective tax rate of 21%. |
| (2) Tax effect is
calculated based on the respective periods’ year-to-date effective
tax rate excluding the impact of discrete items. |
| HEARTLAND
FINANCIAL USA, INC. |
|
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
|
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA |
| |
For the Quarter Ended |
|
9/30/2024 |
|
6/30/2024 |
|
3/31/2024 |
|
12/31/2023 |
|
9/30/2023 |
|
Reconciliation of Adjusted Efficiency Ratio, fully
tax-equivalent (non-GAAP) |
|
|
Net interest income (GAAP) |
$ |
157,897 |
|
|
$ |
158,741 |
|
|
$ |
154,215 |
|
|
$ |
156,137 |
|
|
$ |
145,756 |
|
| Tax-equivalent
adjustment(1) |
|
2,010 |
|
|
|
1,991 |
|
|
|
1,981 |
|
|
|
2,058 |
|
|
|
2,152 |
|
| Fully tax-equivalent net
interest income |
|
159,907 |
|
|
|
160,732 |
|
|
|
156,196 |
|
|
|
158,195 |
|
|
|
147,908 |
|
| Noninterest income |
|
18,992 |
|
|
|
18,207 |
|
|
|
27,663 |
|
|
|
(111,801 |
) |
|
|
28,383 |
|
| Securities (gains)/losses,
net |
|
9,520 |
|
|
|
10,111 |
|
|
|
(58 |
) |
|
|
140,007 |
|
|
|
114 |
|
| Unrealized gain on equity
securities, net |
|
(377 |
) |
|
|
(133 |
) |
|
|
(95 |
) |
|
|
(75 |
) |
|
|
(13 |
) |
| Adjusted revenue
(non-GAAP) |
$ |
188,042 |
|
|
$ |
188,917 |
|
|
$ |
183,706 |
|
|
$ |
186,326 |
|
|
$ |
176,392 |
|
| |
|
|
|
|
|
|
|
|
|
| Total noninterest expenses
(GAAP) |
$ |
85,927 |
|
|
$ |
116,244 |
|
|
$ |
113,595 |
|
|
$ |
130,285 |
|
|
$ |
111,053 |
|
| Less: |
|
|
|
|
|
|
|
|
|
|
Core deposit intangibles amortization |
|
1,345 |
|
|
|
1,421 |
|
|
|
1,492 |
|
|
|
1,611 |
|
|
|
1,625 |
|
|
Partnership investment in tax credit projects |
|
222 |
|
|
|
222 |
|
|
|
494 |
|
|
|
3,573 |
|
|
|
1,136 |
|
|
(Gain) loss on sales/valuation of assets, net |
|
(26,419 |
) |
|
|
193 |
|
|
|
214 |
|
|
|
2,072 |
|
|
|
108 |
|
|
Acquisition, integration and restructuring costs |
|
2,026 |
|
|
|
5,973 |
|
|
|
1,375 |
|
|
|
4,365 |
|
|
|
2,429 |
|
|
FDIC special assessment |
|
(267 |
) |
|
|
(631 |
) |
|
|
2,049 |
|
|
|
8,145 |
|
|
|
— |
|
| Core expenses
(non-GAAP) |
$ |
109,020 |
|
|
$ |
109,066 |
|
|
$ |
107,971 |
|
|
$ |
110,519 |
|
|
$ |
105,755 |
|
| |
|
|
|
|
|
|
|
|
|
| Efficiency ratio (GAAP) |
|
48.58 |
% |
|
|
65.69 |
% |
|
|
62.46 |
% |
|
|
293.86 |
% |
|
|
63.77 |
% |
| Adjusted efficiency ratio,
fully tax-equivalent (non-GAAP) |
|
57.98 |
% |
|
|
57.73 |
% |
|
|
58.77 |
% |
|
|
59.31 |
% |
|
|
59.95 |
% |
| |
|
|
|
|
|
|
|
|
|
| Reconciliation of
Annualized Ratio of Core Expenses to Average Assets
(non-GAAP) |
|
|
|
|
|
|
|
|
|
| Total noninterest expenses
(GAAP) |
$ |
85,927 |
|
|
$ |
116,244 |
|
|
$ |
113,595 |
|
|
$ |
130,285 |
|
|
$ |
111,053 |
|
| Core expenses (non-GAAP) |
|
109,020 |
|
|
|
109,066 |
|
|
|
107,971 |
|
|
|
110,519 |
|
|
|
105,755 |
|
| |
|
|
|
|
|
|
|
|
|
| Average assets |
$ |
18,439,910 |
|
|
$ |
19,043,362 |
|
|
$ |
19,296,638 |
|
|
$ |
19,667,825 |
|
|
$ |
20,207,920 |
|
| Total noninterest expenses to
average assets (GAAP) |
|
1.85 |
% |
|
|
2.46 |
% |
|
|
2.37 |
% |
|
|
2.63 |
% |
|
|
2.18 |
% |
| Core expenses to average
assets (non-GAAP) |
|
2.35 |
% |
|
|
2.30 |
% |
|
|
2.25 |
% |
|
|
2.23 |
% |
|
|
2.08 |
% |
| |
|
|
|
|
|
|
|
|
|
| Acquisition,
integration and restructuring costs |
|
|
|
|
|
|
|
|
|
| Salaries and employee
benefits |
$ |
58 |
|
|
$ |
462 |
|
|
$ |
168 |
|
|
$ |
1,425 |
|
|
$ |
94 |
|
| Occupancy |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,092 |
|
|
|
— |
|
| Furniture and equipment |
|
52 |
|
|
|
53 |
|
|
|
— |
|
|
|
19 |
|
|
|
— |
|
| Professional fees |
|
1,674 |
|
|
|
5,385 |
|
|
|
931 |
|
|
|
793 |
|
|
|
1,617 |
|
| Advertising |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
28 |
|
|
|
178 |
|
| Other noninterest
expenses |
|
242 |
|
|
|
73 |
|
|
|
276 |
|
|
|
1,008 |
|
|
|
540 |
|
| Total acquisition,
integration and restructuring costs |
$ |
2,026 |
|
|
$ |
5,973 |
|
|
$ |
1,375 |
|
|
$ |
4,365 |
|
|
$ |
2,429 |
|
| |
|
|
|
|
|
|
|
|
|
| (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 Ended |
|
|
9/30/2024 |
|
6/30/2024 |
|
3/31/2024 |
|
12/31/2023 |
|
9/30/2023 |
|
Reconciliation of Adjusted Earnings |
|
|
|
|
|
|
|
|
|
| Net income/(loss) |
$ |
64,153 |
|
|
$ |
39,742 |
|
|
$ |
51,707 |
|
|
$ |
(70,363 |
) |
|
$ |
48,091 |
|
| (Gain)/loss from sale of
securities |
|
9,520 |
|
|
|
10,111 |
|
|
|
(58 |
) |
|
|
140,007 |
|
|
|
114 |
|
| (Gain)/loss on sales/valuation
of assets, net |
|
(26,419 |
) |
|
|
193 |
|
|
|
214 |
|
|
|
2,072 |
|
|
|
108 |
|
| Acquisition, integration and
restructuring costs |
|
2,026 |
|
|
|
5,973 |
|
|
|
1,375 |
|
|
|
4,365 |
|
|
|
2,429 |
|
| FDIC special assessment |
|
(267 |
) |
|
|
(631 |
) |
|
|
2,049 |
|
|
|
8,145 |
|
|
|
— |
|
| Total
adjustments |
|
(15,140 |
) |
|
|
15,646 |
|
|
|
3,580 |
|
|
|
154,589 |
|
|
|
2,651 |
|
| Tax effect of
adjustments(2) |
|
3,634 |
|
|
|
(3,739 |
) |
|
|
(866 |
) |
|
|
(36,638 |
) |
|
|
(628 |
) |
| Adjusted
earnings |
$ |
52,647 |
|
|
$ |
51,649 |
|
|
$ |
54,421 |
|
|
$ |
47,588 |
|
|
$ |
50,114 |
|
| |
|
|
|
|
|
|
|
|
|
| Preferred dividends |
|
(2,013 |
) |
|
|
(2,012 |
) |
|
|
(2,013 |
) |
|
|
(2,012 |
) |
|
|
(2,013 |
) |
| Adjusted earnings
available to common stockholders |
$ |
50,634 |
|
|
$ |
49,637 |
|
|
$ |
52,408 |
|
|
$ |
45,576 |
|
|
$ |
48,101 |
|
| |
|
|
|
|
|
|
|
|
|
| Plus core deposit intangibles
amortization, net of tax(2) |
|
1,022 |
|
|
|
1,081 |
|
|
|
1,131 |
|
|
|
1,229 |
|
|
|
1,240 |
|
| Earnings available to
common stockholders excluding intangible amortization
(non-GAAP) |
$ |
51,656 |
|
|
$ |
50,718 |
|
|
$ |
53,539 |
|
|
$ |
46,805 |
|
|
$ |
49,341 |
|
| |
|
|
|
|
|
|
|
|
|
| Reconciliation of
Adjusted Annualized Return on Average Assets |
|
|
|
|
|
|
|
|
|
| Average assets |
$ |
18,439,910 |
|
|
$ |
19,043,362 |
|
|
$ |
19,296,638 |
|
|
$ |
19,667,825 |
|
|
$ |
20,207,920 |
|
| Adjusted annualized return on
average assets (non-GAAP) |
|
1.14 |
% |
|
|
1.09 |
% |
|
|
1.13 |
% |
|
|
0.96 |
% |
|
|
0.98 |
% |
| |
|
|
|
|
|
|
|
|
|
| Reconciliation of
Adjusted Annualized Return on Average Common
Equity |
|
|
|
|
|
|
|
|
|
| Average common stockholders'
equity (GAAP) |
$ |
1,962,334 |
|
|
$ |
1,863,236 |
|
|
$ |
1,832,959 |
|
|
$ |
1,729,086 |
|
|
$ |
1,746,818 |
|
| Adjusted annualized average
common equity (non-GAAP) |
|
10.27 |
% |
|
|
10.71 |
% |
|
|
11.50 |
% |
|
|
10.46 |
% |
|
|
10.92 |
% |
| |
|
|
|
|
|
|
|
|
|
| Reconciliation of
Adjusted Annualized Return on Average Tangible Common
Equity |
|
|
|
|
|
|
|
|
|
| Average tangible common equity
(non-GAAP) |
$ |
1,371,515 |
|
|
$ |
1,271,046 |
|
|
$ |
1,239,313 |
|
|
$ |
1,133,888 |
|
|
$ |
1,149,992 |
|
| Adjusted annualized average
tangible common equity (non-GAAP) |
|
14.98 |
% |
|
|
16.05 |
% |
|
|
17.38 |
% |
|
|
16.38 |
% |
|
|
17.02 |
% |
| |
|
|
|
|
|
|
|
|
|
| Reconciliation of
Adjusted Diluted Earnings Per Common Share |
|
|
|
|
|
|
|
|
|
| Weighted average shares
outstanding-diluted |
|
43,195,257 |
|
|
|
43,060,354 |
|
|
|
42,915,768 |
|
|
|
42,838,405 |
|
|
|
42,812,563 |
|
| Adjusted diluted earnings per
common share |
$ |
1.17 |
|
|
$ |
1.15 |
|
|
$ |
1.22 |
|
|
$ |
1.06 |
|
|
$ |
1.12 |
|
| |
|
|
|
|
|
|
|
|
|
| (2) Tax effect is
calculated based on the respective periods’ year-to-date effective
tax rate excluding the impact of discrete items. |
| HEARTLAND
FINANCIAL USA, INC. |
|
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
| DOLLARS
IN THOUSANDS, EXCEPT PER SHARE DATA |
|
|
For the Quarter Ended
September 30, |
|
For the Nine Months Ended
September 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Reconciliation of Annualized Return on Average Tangible
Common Equity (non-GAAP) |
|
|
|
|
|
|
|
| Earnings available to common
stockholders (GAAP) |
$ |
62,140 |
|
|
$ |
46,078 |
|
|
$ |
149,564 |
|
|
$ |
144,245 |
|
|
Plus core deposit intangibles amortization, net of
tax(2) |
|
1,022 |
|
|
|
1,240 |
|
|
|
3,236 |
|
|
|
3,908 |
|
| Earnings available to
common stockholders excluding intangible amortization
(non-GAAP) |
$ |
63,162 |
|
|
$ |
47,318 |
|
|
$ |
152,800 |
|
|
$ |
148,153 |
|
| |
|
|
|
|
|
|
|
| Average common equity
(GAAP) |
$ |
1,962,334 |
|
|
$ |
1,746,818 |
|
|
$ |
1,886,454 |
|
|
$ |
1,710,230 |
|
|
Less average goodwill |
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
Less average core deposit intangibles, net |
|
14,814 |
|
|
|
20,821 |
|
|
|
16,208 |
|
|
|
22,501 |
|
| Average tangible
common equity (non-GAAP) |
$ |
1,371,515 |
|
|
$ |
1,149,992 |
|
|
$ |
1,294,241 |
|
|
$ |
1,111,724 |
|
| Annualized return on average
common equity (GAAP) |
|
12.60 |
% |
|
|
10.47 |
% |
|
|
10.59 |
% |
|
|
11.28 |
% |
| Annualized return on average
tangible common equity (non-GAAP) |
|
18.32 |
% |
|
|
16.32 |
% |
|
|
15.77 |
% |
|
|
17.82 |
% |
| |
|
|
|
|
|
|
|
| Reconciliation of
Annualized Net Interest Margin, Fully Tax-Equivalent
(non-GAAP) |
|
|
|
|
|
|
|
| Net Interest Income
(GAAP) |
$ |
157,897 |
|
|
$ |
145,756 |
|
|
$ |
470,853 |
|
|
$ |
445,100 |
|
|
Plus tax-equivalent adjustment(1) |
|
2,010 |
|
|
|
2,152 |
|
|
|
5,981 |
|
|
|
6,497 |
|
| Net interest income,
fully tax-equivalent (non-GAAP) |
$ |
159,907 |
|
|
$ |
147,908 |
|
|
$ |
476,834 |
|
|
$ |
451,597 |
|
| |
|
|
|
|
|
|
|
| Average earning assets |
$ |
16,838,131 |
|
|
$ |
18,439,010 |
|
|
$ |
17,254,023 |
|
|
$ |
18,451,907 |
|
| |
|
|
|
|
|
|
|
| Annualized net interest margin
(GAAP) |
|
3.73 |
% |
|
|
3.14 |
% |
|
|
3.65 |
% |
|
|
3.23 |
% |
| Annualized net interest
margin, fully tax-equivalent (non-GAAP) |
|
3.78 |
|
|
|
3.18 |
|
|
|
3.69 |
|
|
|
3.27 |
|
| Net purchase accounting
discount amortization on loans included in annualized net interest
margin |
|
0.02 |
|
|
|
0.01 |
|
|
|
0.02 |
|
|
|
0.02 |
|
| |
|
|
|
|
|
|
|
| (1) Computed on a
tax-equivalent basis using an effective tax rate of 21%. |
| (2) Tax effect is
calculated based on the respective periods’ year-to-date effective
tax rate excluding the impact of discrete items. |
| HEARTLAND
FINANCIAL USA, INC. |
|
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
|
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA |
|
|
For the Quarter Ended
September 30, |
|
For the Nine Months Ended
September 30, |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Reconciliation of Adjusted Efficiency Ratio, Fully
Tax-Equivalent (non-GAAP) |
|
|
|
|
|
|
|
|
Net interest income (GAAP) |
$ |
157,897 |
|
|
$ |
145,756 |
|
|
$ |
470,853 |
|
|
$ |
445,100 |
|
| Tax-equivalent
adjustment(1) |
|
2,010 |
|
|
|
2,152 |
|
|
|
5,981 |
|
|
|
6,497 |
|
| Fully tax-equivalent net
interest income |
|
159,907 |
|
|
|
147,908 |
|
|
|
476,834 |
|
|
|
451,597 |
|
| Noninterest income (GAAP) |
|
18,992 |
|
|
|
28,383 |
|
|
|
64,862 |
|
|
|
90,875 |
|
| Securities (gains)/losses,
net |
|
9,520 |
|
|
|
114 |
|
|
|
19,573 |
|
|
|
1,532 |
|
| Unrealized gain on equity
securities, net |
|
(377 |
) |
|
|
(13 |
) |
|
|
(605 |
) |
|
|
(165 |
) |
| Adjusted revenue
(non-GAAP) |
$ |
188,042 |
|
|
$ |
176,392 |
|
|
$ |
560,664 |
|
|
$ |
543,839 |
|
| |
|
|
|
|
|
|
|
| Total noninterest expenses
(GAAP) |
$ |
85,927 |
|
|
$ |
111,053 |
|
|
$ |
315,766 |
|
|
$ |
331,542 |
|
| Less: |
|
|
|
|
|
|
|
|
Core deposit intangibles amortization |
|
1,345 |
|
|
|
1,625 |
|
|
|
4,258 |
|
|
|
5,128 |
|
|
Partnership investment in tax credit projects |
|
222 |
|
|
|
1,136 |
|
|
|
938 |
|
|
|
1,828 |
|
|
(Gain)/loss on sales/valuation of assets, net |
|
(26,419 |
) |
|
|
108 |
|
|
|
(26,012 |
) |
|
|
(2,149 |
) |
|
Acquisition, integration and restructuring costs |
|
2,026 |
|
|
|
2,429 |
|
|
|
9,374 |
|
|
|
5,994 |
|
|
FDIC special assessment |
|
(267 |
) |
|
|
— |
|
|
|
1,151 |
|
|
|
— |
|
| Core expenses
(non-GAAP) |
$ |
109,020 |
|
|
$ |
105,755 |
|
|
$ |
326,057 |
|
|
$ |
320,741 |
|
| |
|
|
|
|
|
|
|
| Efficiency ratio (GAAP) |
|
48.58 |
% |
|
|
63.77 |
% |
|
|
58.94 |
% |
|
|
61.86 |
% |
| Adjusted efficiency ratio,
fully tax-equivalent (non-GAAP) |
|
57.98 |
% |
|
|
59.95 |
% |
|
|
58.16 |
% |
|
|
58.98 |
% |
| |
|
|
|
|
|
|
|
| Reconciliation of
Annualized Ratio of Core Expenses to Average Assets
(non-GAAP) |
|
|
|
|
|
|
|
| Total noninterest expenses
(GAAP) |
$ |
85,927 |
|
|
$ |
111,053 |
|
|
$ |
315,766 |
|
|
$ |
331,542 |
|
| Core expenses (non-GAAP) |
|
109,020 |
|
|
|
105,755 |
|
|
|
326,057 |
|
|
|
320,741 |
|
| |
|
|
|
|
|
|
|
| Average assets |
$ |
18,439,910 |
|
|
$ |
20,207,920 |
|
|
$ |
18,924,862 |
|
|
$ |
20,182,808 |
|
| Total noninterest expenses to
average assets (GAAP) |
|
1.85 |
% |
|
|
2.18 |
% |
|
|
2.23 |
% |
|
|
2.20 |
% |
| Core expenses to average
assets (non-GAAP) |
|
2.35 |
% |
|
|
2.08 |
% |
|
|
2.30 |
% |
|
|
2.12 |
% |
| |
|
|
|
|
|
|
|
| Acquisition,
integration and restructuring costs |
|
|
|
|
|
|
|
| Salaries and employee
benefits |
$ |
58 |
|
|
$ |
94 |
|
|
$ |
689 |
|
|
$ |
261 |
|
| Occupancy |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Furniture and equipment |
|
52 |
|
|
|
— |
|
|
|
105 |
|
|
|
— |
|
| Professional fees |
|
1,674 |
|
|
|
1,617 |
|
|
|
7,990 |
|
|
|
3,619 |
|
| Advertising |
|
— |
|
|
|
178 |
|
|
|
— |
|
|
|
522 |
|
| Other noninterest
expenses |
|
242 |
|
|
|
540 |
|
|
|
590 |
|
|
|
1,592 |
|
| Total acquisition,
integration and restructuring costs |
$ |
2,026 |
|
|
$ |
2,429 |
|
|
$ |
9,374 |
|
|
$ |
5,994 |
|
| |
|
|
|
|
|
|
|
| (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 Ended
September 30, |
|
For the Nine Months Ended
September 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Reconciliation of Adjusted Earnings
(non-GAAP) |
|
|
|
|
|
|
|
| Net income/(loss) |
$ |
64,153 |
|
|
$ |
48,091 |
|
|
$ |
155,602 |
|
|
$ |
150,283 |
|
| (Gain)/loss from sale of
securities |
|
9,520 |
|
|
|
114 |
|
|
|
19,573 |
|
|
|
1,532 |
|
| (Gain)/loss on sales/valuation
of assets, net |
|
(26,419 |
) |
|
|
108 |
|
|
|
(26,012 |
) |
|
|
(2,149 |
) |
| Acquisition, integration and
restructuring costs |
|
2,026 |
|
|
|
2,429 |
|
|
|
9,374 |
|
|
|
5,994 |
|
| FDIC special assessment |
|
(267 |
) |
|
|
— |
|
|
|
1,151 |
|
|
|
— |
|
| Total
adjustments |
|
(15,140 |
) |
|
|
2,651 |
|
|
|
4,086 |
|
|
|
5,377 |
|
| Tax effect of
adjustments(2) |
|
3,634 |
|
|
|
(628 |
) |
|
|
(981 |
) |
|
|
(1,280 |
) |
| Adjusted
earnings |
$ |
52,647 |
|
|
$ |
50,114 |
|
|
$ |
158,707 |
|
|
$ |
154,380 |
|
| |
|
|
|
|
|
|
|
| Preferred dividends |
|
(2,013 |
) |
|
|
(2,013 |
) |
|
|
(6,038 |
) |
|
|
(6,038 |
) |
| Adjusted earnings
available to common stockholders |
$ |
50,634 |
|
|
$ |
48,101 |
|
|
$ |
152,669 |
|
|
$ |
148,342 |
|
| |
|
|
|
|
|
|
|
| Plus core deposit intangibles
amortization, net of tax(2) |
|
1,022 |
|
|
|
1,240 |
|
|
|
3,236 |
|
|
|
3,908 |
|
| Earnings available to
common stockholders excluding intangible amortization
(non-GAAP) |
$ |
51,656 |
|
|
$ |
49,341 |
|
|
$ |
155,905 |
|
|
$ |
152,250 |
|
| |
|
|
|
|
|
|
|
| Reconciliation of
Adjusted Annualized Return on Average Assets |
|
|
|
|
|
|
|
| Average assets |
$ |
18,439,910 |
|
|
$ |
20,207,920 |
|
|
$ |
18,924,862 |
|
|
$ |
20,182,808 |
|
| Adjusted annualized return on
average assets (non-GAAP) |
|
1.14 |
% |
|
|
0.98 |
% |
|
|
1.12 |
% |
|
|
1.02 |
% |
| |
|
|
|
|
|
|
|
| Reconciliation of
Adjusted Annualized Return on Average Common
Equity |
|
|
|
|
|
|
|
| Average common stockholders'
equity (GAAP) |
$ |
1,962,334 |
|
|
$ |
1,746,818 |
|
|
$ |
1,886,454 |
|
|
$ |
1,710,230 |
|
| Adjusted annualized return on
average common equity (non-GAAP) |
|
10.27 |
% |
|
|
10.92 |
% |
|
|
10.81 |
% |
|
|
11.60 |
% |
| |
|
|
|
|
|
|
|
| Reconciliation of
Adjusted Annualized Return on Average Tangible Common
Equity |
|
|
|
|
|
|
|
| Average tangible common equity
(non-GAAP) |
$ |
1,371,515 |
|
|
$ |
1,149,992 |
|
|
$ |
1,294,241 |
|
|
$ |
1,111,724 |
|
| Adjusted annualized return on
average tangible common equity (non-GAAP) |
|
14.98 |
% |
|
|
17.02 |
% |
|
|
16.09 |
% |
|
|
18.31 |
% |
| |
|
|
|
|
|
|
|
| Reconciliation of
Adjusted Diluted Earnings Per Common Share |
|
|
|
|
|
|
|
| Weighted average shares
outstanding-diluted |
|
43,195,257 |
|
|
|
42,812,563 |
|
|
|
43,080,422 |
|
|
|
42,769,872 |
|
| Adjusted diluted earnings per
common share |
$ |
1.17 |
|
|
$ |
1.12 |
|
|
$ |
3.54 |
|
|
$ |
3.47 |
|
| |
|
|
|
|
|
|
|
| (2) Tax effect is
calculated based on the respective periods’ year-to-date effective
tax rate excluding the impact of discrete items. |
Heartland Financial USA (NASDAQ:HTLF)
Historical Stock Chart
From Nov 2024 to Dec 2024
Heartland Financial USA (NASDAQ:HTLF)
Historical Stock Chart
From Dec 2023 to Dec 2024
