HEARTLAND FINANCIAL USA, INC. Highlights
- Quarterly net income available to common stockholders of $13.7 million, and annual net income available to common stockholders of $75.2 million
- Diluted earnings per common share of $0.45 for the quarter and $2.65 for the year
- Recorded a charge to income tax expense of $10.4 million related to the enactment by Congress of the Tax Cuts and Jobs Act, which resulted in a reduction of diluted earnings per common share of $0.35 for the quarter and for the year
- Net interest margin of 4.14% for the quarter, fully tax-equivalent (non-GAAP)(1) of 4.30%
- Net interest margin of 4.04% for the year, fully tax-equivalent (non-GAAP)(1) of 4.22%
- Announced agreement to acquire Signature Bancshares, Inc. of Minnetonka, MN
- Announced agreement to acquire First Bank Lubbock Bancshares, Inc. of Lubbock, TX
- Declared and paid a special dividend of $0.07 per common share
| Quarter Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2017 | 2016 | 2017 | 2016 | ||||||||||||
| Net income available to common stockholders (in millions) | $ | 13.7 | $ | 19.1 | $ | 75.2 | $ | 80.1 | |||||||
| Diluted earnings per common share | 0.45 | 0.74 | 2.65 | 3.22 | |||||||||||
| Return on average assets | 0.55 | % | 0.92 | % | 0.83 | % | 0.98 | % | |||||||
| Return on average common equity | 5.50 | 10.48 | 8.63 | 11.80 | |||||||||||
| Return on average tangible common equity (non-GAAP)(2) | 7.60 | 13.24 | 11.45 | 15.15 | |||||||||||
| Net interest margin | 4.14 | 3.96 | 4.04 | 3.95 | |||||||||||
| Net interest margin, fully tax-equivalent (non-GAAP)(1) | 4.30 | 4.14 | 4.22 | 4.13 | |||||||||||
| "Excluding the fourth quarter tax charge, 2017 was another banner year for Heartland as we reached new heights in earnings and acquired growth. We enter 2018 with positive momentum, and we are poised for strong performance." |
| Lynn B. Fuller, chairman and chief executive officer, Heartland Financial USA, Inc. |
(1) Refer to the "Reconciliation of Annualized Net Interest Margin, Fully Tax-Equivalent (non-GAAP)" table included in this earnings release.
(2) Refer to the "Reconciliation of Return on Average Tangible Common Equity (non-GAAP)" table included in this earnings release.
DUBUQUE, Iowa, Jan. 29, 2018 (GLOBE NEWSWIRE) -- Heartland Financial USA, Inc. (NASDAQ:HTLF) today reported net income available to common stockholders of $13.7 million, or $0.45 per diluted common share, for the quarter ended December 31, 2017, compared to $19.1 million, or $0.74 per diluted common share, for the fourth quarter of 2016. Return on average common equity was 5.50% and return on average assets was 0.55% for the fourth quarter of 2017, compared to 10.48% and 0.92%, respectively, for the same quarter in 2016.
Net income available to common stockholders for the year 2017 was $75.2 million, or $2.65 per diluted common share, compared to $80.1 million, or $3.22 per diluted common share, recorded during the year 2016. Return on average common equity was 8.63% and return on average assets was 0.83% for the year 2017, compared to 11.80% and 0.98%, respectively, for the same period in 2016.
In the fourth quarter of 2017, in response to the passage of the Tax Cuts and Jobs Act by Congress, Heartland recorded a reduction in the value of its deferred tax assets, resulting in a one-time non-cash charge of $10.4 million to income tax expense. Excluding this charge to income tax expense, net income available to common stockholders for the fourth quarter of 2017 was $24.1 million or $0.80 per diluted common share, and for the year 2017, net income available to common shareholders was $85.6 million or $3.01 per diluted common share.
Commenting on Heartland’s fourth quarter and annual results, Lynn B. Fuller, Heartland’s chairman and chief executive officer said, "Excluding the fourth quarter tax charge, 2017 was another banner year for Heartland as we reached new heights in earnings and acquired growth. We enter 2018 with positive momentum, and we are poised for strong performance."
On November 13, 2017, Heartland entered into a definitive merger agreement with Signature Bancshares, Inc., parent company of Signature Bank headquartered in Minnetonka, Minnesota. As of the announcement date, the stock and cash transaction was valued at approximately $53.4 million. Simultaneous with the closing of the transaction, Signature Bank will merge into Heartland's Minnesota-based subsidiary, Minnesota Bank & Trust, and the combined entity will operate as Minnesota Bank & Trust. The transaction is subject to certain potential adjustments and customary closing conditions. The transaction is expected to close in the first quarter of 2018 with a systems conversion planned for the second quarter of 2018. As of December 31, 2017, Signature Bank had total assets of $409.1 million, including gross loans held to maturity of $339.1 million, and deposits of $367.8 million.
On December 12, 2017, Heartland entered into a definitive merger agreement with First Bank Lubbock Bancshares, Inc., parent company of FirstBank & Trust Company, headquartered in Lubbock, Texas. As of the announcement date, the aggregate merger consideration, which is comprised of Heartland common stock and cash, was approximately $185.6 million. The transaction is subject to certain potential adjustments and customary closing conditions. Upon closing of the transaction, FirstBank & Trust Company will become a wholly owned subsidiary of Heartland. The transaction is expected to close in the second quarter of 2018 with a systems conversion planned for the third quarter of 2018. As of December 31, 2017, FirstBank & Trust Company had total assets of $929.6 million, including $669.3 million of gross loans held to maturity, and deposits of $821.9 million.
Net Interest Margin Increases As a Percentage of Average Earning Assets and Increases In Dollars
Net interest margin, expressed as a percentage of average earning assets, was 4.14% (4.30% on a fully tax-equivalent basis) during the fourth quarter of 2017, compared to 4.08% (4.26% on a fully tax-equivalent basis) during the third quarter of 2017 and 3.96% (4.14% on a fully tax-equivalent basis) during the fourth quarter of 2016.
Fuller said, “Heartland’s strong net interest margin stands out among its peers. Our fully-tax-equivalent margin widened for the quarter and annual periods to 4.30 percent and 4.22 percent, respectively.”
Interest income for the fourth quarter of 2017 was $102.1 million, an increase of $19.3 million or 23%, compared to the $82.8 million recorded in the fourth quarter of 2016. The tax-equivalent adjustment, which accounts for income taxes saved on the interest earned on nontaxable securities and loans, was $3.6 million for the fourth quarter of 2017 and $3.5 million for the fourth quarter of 2016. With these adjustments, interest income on a tax-equivalent basis was $105.6 million for the fourth quarter of 2017, an increase of $19.3 million or 22%, compared to $86.3 million for the fourth quarter of 2016. The increase in interest income in the fourth quarter of 2017, as compared to the fourth quarter of 2016, was primarily due to an increase in average earning assets, which totaled $8.89 billion during the fourth quarter of 2017 compared to $7.55 billion during the fourth quarter of 2016, a $1.34 billion or 18% increase. A majority of this growth was attributable to the acquisitions completed in 2017.
Interest expense for the fourth quarter of 2017 was $9.2 million, an increase of $1.6 million or 21% from $7.6 million in the fourth quarter of 2016. Average interest bearing liabilities for the quarter ended December 31, 2017, totaled $5.66 billion, an increase of $457.4 million or 9% from $5.21 billion in the same quarter in 2016. The average interest rate paid on Heartland's interest bearing deposits and borrowings increased 7 basis points from 0.58% in the fourth quarter of 2016 to 0.65% in the fourth quarter of 2017. The average interest rate paid on savings deposits was 0.31% during the fourth quarter of 2017 compared to 0.21% during the fourth quarter of 2016, and the average interest rate paid on time deposits was 0.82% during the fourth quarter of 2017 compared to 0.77% during the fourth quarter of 2016.
Net interest income increased $17.7 million or 24% to $92.9 million in the fourth quarter of 2017 from the $75.2 million recorded in the fourth quarter of 2016. After the tax-equivalent adjustment discussed above, net interest income on a tax-equivalent basis totaled $96.4 million during the fourth quarter of 2017, an increase of $17.7 million or 23% from the $78.7 million recorded during the fourth quarter of 2016.
Noninterest Income and Noninterest Expenses Increase From Fourth Quarter 2016
Noninterest income totaled $25.5 million during the fourth quarter of 2017 compared to $24.5 million during the fourth quarter of 2016, an increase of $1.1 million or 4%. Service charges and fees totaled $9.9 million during the fourth quarter of 2017 compared to $8.1 million during the fourth quarter of 2016, an increase of $1.8 million or 22%. This increase was primarily attributable to a larger demand deposit customer base, a portion of which was the result of the Founders Bancorp acquisition completed in the first quarter of 2017 and the Citywide Banks of Colorado, Inc., acquisition completed in the third quarter of 2017. Gains on sale of loans held for sale totaled $4.3 million during the fourth quarter of 2017 compared to $5.8 million during the fourth quarter of 2016, a decrease of $1.6 million or 27%. Trust fees increased $618,000 or 17% to $4.3 million in the fourth quarter of 2017 compared to $3.7 million for the same quarter of 2016.
For the fourth quarter of 2017, noninterest expenses totaled $77.9 million compared to $69.9 million during the fourth quarter of 2016, an increase of $8.0 million or 11%. The category with the most significant increase was salaries and employee benefits, which increased $4.2 million or 11%. Full time equivalent employees totaled 2,008 as of December 31, 2017, compared to 1,864 as of December 31, 2016. Professional fees totaled $8.5 million for the fourth quarter of 2017, an increase of $1.3 million or 19% from $7.2 million recorded during the fourth quarter of 2016 primarily due to the recently completed and pending acquisitions.
Heartland's effective tax rate was 61.13% for the fourth quarter of 2017 compared to 30.38% for the fourth quarter of 2016. Exclusive of the charge to income tax expense of $10.4 million recorded as a result of the Tax Cuts and Jobs Act, Heartland's effective tax rate was 31.58% for the fourth quarter of 2017. Heartland's effective tax rate was also affected by the level of tax-exempt interest income which, as a percentage of pre-tax income, was 18.78% during the fourth quarter of 2017 compared to 23.69% during the fourth quarter of 2016.
"The passage of the Tax Cuts and Jobs Act required us to revalue our deferred tax assets at the new federal tax rate of 21%. While the $10.4 million non-cash charge to income tax expense negatively impacted earnings for the fourth quarter of 2017, we expect the new legislation will have a positive impact on our future earnings," stated Fuller.
Loans and Deposits Increase Since December 31, 2016
Total assets were $9.81 billion at December 31, 2017, an increase of $1.56 billion or 19% from $8.25 billion at year-end 2016. Included in this increase, at fair value, were $213.9 million of assets acquired in the Founders Bancorp transaction and $1.49 billion of assets acquired in the Citywide Banks of Colorado, Inc. transaction. Exclusive of these transactions, total assets decreased $144.0 million or 2%. Securities represented 25% of total assets at December 31, 2017, compared to 26% at December 31, 2016.
Total loans held to maturity were $6.39 billion at December 31, 2017, compared to $5.35 billion at year-end 2016, an increase of $1.04 billion or 19%. This increase included $1.08 billion of total loans held to maturity, at fair value, acquired in the Founders Bancorp and Citywide Banks of Colorado, Inc. transactions. Exclusive of these transactions, total loans held to maturity decreased $42.1 million during the year 2017. Loan growth for the fourth quarter of 2017 totaled $18.0 million.
Total deposits were $8.15 billion as of December 31, 2017, compared to $6.85 billion at year-end 2016, an increase of $1.30 billion or 19%. This increase included $1.39 billion of deposits, at fair value, acquired in the Founders Bancorp and Citywide Banks of Colorado, Inc. transactions. Exclusive of these transactions, total deposits decreased $92.0 million. Demand deposits totaled $2.98 billion at December 31, 2017, an increase of $781.2 million or 35% from $2.20 billion at year-end 2016. Excluding $626.7 million of demand deposits attributable to the Founders Bancorp and Citywide Banks of Colorado, Inc. transactions, demand deposits increased $154.5 million or 7% since year-end 2016. Savings deposits increased $452.2 million or 12% to $4.24 billion at December 31, 2017, from $3.79 billion at December 31, 2016. Excluding savings deposits of $619.0 million acquired in the Founders Bancorp and Citywide Banks of Colorado, Inc. transactions, savings deposits decreased $166.7 million or 4% since year-end 2016. Time deposits totaled $923.5 million as of December 31, 2017, compared to $857.3 million as of December 31, 2016, an increase of $66.2 million. Exclusive of $145.9 million of time deposits acquired during 2017, time deposits decreased $79.7 million or 9% since December 31, 2016.
"Aided by acquisitions, loans and deposits increased by 19 percent over the previous year. Loans and non-time deposits also grew organically during the second half of 2017. These growth trends provide significant momentum for Heartland going into 2018," commented Fuller.
Nonperforming Assets Remain Constant; Provision for Loan Losses Increases Since December 31, 2016
Nonperforming assets were $74.6 million at December 31, 2017, compared to $74.8 million at December 31, 2016. Exclusive of $8.0 million of nonperforming assets, at fair value, acquired in the Citywide Banks of Colorado, Inc. transaction, nonperforming assets decreased $8.2 million or 11% since year-end 2016. Nonperforming loans were $63.4 million or 0.99% of total loans at December 31, 2017, compared to $64.4 million or 1.20% of total loans at December 31, 2016.
The allowance for loan losses at December 31, 2017, was 0.87% of loans and 87.82% of nonperforming loans compared to 1.02% of loans and 84.37% of nonperforming loans at December 31, 2016. The provision for loan losses was $5.3 million and $2.2 million for the fourth quarter of 2017 and 2016, respectively. Given the size of Heartland's loan portfolio, the level of organic loan growth, acquired loans that move out of the purchase accounting pool, changes in credit quality and the variability that can occur in the factors considered when determining the appropriateness of the allowance for loan losses, Heartland's quarterly provision for loan losses will vary from quarter to quarter.
"In 2017, Heartland successfully executed on its strategy to deliver growth and profitability while maintaining assets below the $10 billion threshold. Closing the year at $9.8 billion in assets affords us 18 months to prepare for the adverse revenue impact of the Dodd Frank Act, which will significantly reduce debit card interchange income. In 2018, we will continue to deliver on our growth strategy by adding Signature Bank and FirstBank & Trust Company and expect to finish the year above $11 billion in total assets," Fuller concluded.
Conference Call Details
Heartland will host a conference call for investors at 5:00 p.m. EDT today. To participate, dial 877-407-0782 at least five minutes before start time. To listen to the live webcast, log on to www.htlf.com at least 15 minutes before start time. A replay will be available until January 28, 2019, by logging on to www.htlf.com.
About Heartland Financial USA, Inc.
Heartland Financial USA, Inc. is a diversified financial services company with assets of $9.8 billion. The company provides banking, mortgage, private client, investment, insurance and consumer finance services to individuals and businesses. Heartland currently has 117 banking locations serving 88 communities in Iowa, Illinois, Wisconsin, New Mexico, Arizona, Montana, Colorado, Minnesota, Kansas, Missouri, Texas and California. Additional information about Heartland Financial USA, Inc. is available at www.htlf.com.
Safe Harbor Statement
This release, and future oral and written statements of Heartland and its management, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Heartland's financial condition, results of operations, plans, objectives, future performance and business. Although these forward-looking statements are based upon the beliefs, expectations and assumptions of Heartland's management, there are a number of factors, many of which are beyond the ability of management to control or predict, that could cause actual results to differ materially from those in its forward-looking statements. These factors, which are detailed in the risk factors in Heartland's Annual Report on Form 10-K for the year ended December 31, 2016, filed with the Securities and Exchange Commission, consist of, among others: (i) the strength of the national economy and the local economies in which we operate; (ii) the economic impact of past and any future terrorist threats and attacks and any acts of war; (iii) changes in state and federal laws, regulations and governmental policies concerning the company's general business; (iv) changes in interest rates and prepayment rates of our assets; (v) increased competition in the financial services sector and the inability to attract new customers; (vi) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (vii) the potential impact of acquisitions and Heartland's ability to successfully integrate acquired banks; (viii) the loss of key executives or employees; (ix) changes in consumer spending; (x) unexpected outcomes of existing or new litigation involving Heartland; and (xi) changes in accounting policies and practices. All statements in this release, including forward-looking statements, speak only as of the date they are made, and Heartland undertakes no obligation to update any statement in light of new information or future events.
-FINANCIAL TABLES FOLLOW-
| HEARTLAND FINANCIAL USA, INC. | |||||||||||||||
| CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) | |||||||||||||||
| DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | |||||||||||||||
| For the Quarter Ended December 31, | For the Year Ended December 31, | ||||||||||||||
| 2017 | 2016 | 2017 | 2016 | ||||||||||||
| Interest Income | |||||||||||||||
| Interest and fees on loans | $ | 86,108 | $ | 69,848 | $ | 304,006 | $ | 278,128 | |||||||
| Interest on securities: | |||||||||||||||
| Taxable | 11,119 | 8,480 | 38,365 | 32,858 | |||||||||||
| Nontaxable | 4,401 | 4,292 | 19,698 | 15,085 | |||||||||||
| Interest on federal funds sold | 5 | — | 42 | 12 | |||||||||||
| Interest bearing deposits with the Federal Reserve Bank and other banks and other short-term investments | 435 | 157 | 1,547 | 396 | |||||||||||
| Total Interest Income | 102,068 | 82,777 | 363,658 | 326,479 | |||||||||||
| Interest Expense | |||||||||||||||
| Interest on deposits | 5,313 | 3,744 | 18,279 | 15,939 | |||||||||||
| Interest on short-term borrowings | 180 | 119 | 678 | 1,202 | |||||||||||
| Interest on other borrowings | 3,719 | 3,754 | 14,393 | 14,672 | |||||||||||
| Total Interest Expense | 9,212 | 7,617 | 33,350 | 31,813 | |||||||||||
| Net Interest Income | 92,856 | 75,160 | 330,308 | 294,666 | |||||||||||
| Provision for loan losses | 5,328 | 2,181 | 15,563 | 11,694 | |||||||||||
| Net Interest Income After Provision for Loan Losses | 87,528 | 72,979 | 314,745 | 282,972 | |||||||||||
| Noninterest Income | |||||||||||||||
| Service charges and fees | 9,892 | 8,128 | 39,183 | 31,590 | |||||||||||
| Loan servicing income | 1,400 | 1,068 | 5,636 | 4,501 | |||||||||||
| Trust fees | 4,336 | 3,718 | 15,818 | 14,845 | |||||||||||
| Brokerage and insurance commissions | 1,071 | 955 | 4,033 | 3,869 | |||||||||||
| Securities gains, net | 1,420 | 1,608 | 6,973 | 11,340 | |||||||||||
| Gains on sale of loans held for sale | 4,290 | 5,840 | 22,251 | 39,634 | |||||||||||
| Valuation adjustment on commercial servicing rights | (8 | ) | 8 | 21 | (33 | ) | |||||||||
| Income on bank owned life insurance | 733 | 542 | 2,772 | 2,275 | |||||||||||
| Other noninterest income | 2,394 | 2,588 | 5,335 | 5,580 | |||||||||||
| Total Noninterest Income | 25,528 | 24,455 | 102,022 | 113,601 | |||||||||||
| Noninterest Expense | |||||||||||||||
| Salaries and employee benefits | 43,289 | 39,115 | 171,407 | 163,547 | |||||||||||
| Occupancy | 5,892 | 5,076 | 22,244 | 20,398 | |||||||||||
| Furniture and equipment | 3,148 | 2,944 | 11,061 | 10,245 | |||||||||||
| Professional fees | 8,537 | 7,195 | 32,879 | 27,676 | |||||||||||
| FDIC insurance assessments | 985 | 717 | 3,595 | 4,185 | |||||||||||
| Advertising | 2,088 | 2,274 | 7,229 | 6,448 | |||||||||||
| Core deposit intangibles and customer relationship intangibles amortization | 1,825 | 1,147 | 6,077 | 5,630 | |||||||||||
| Other real estate and loan collection expenses | 687 | 572 | 2,461 | 2,443 | |||||||||||
| (Gain)/loss on sales/valuations of assets, net | 833 | 414 | 2,475 | 1,478 | |||||||||||
| Other noninterest expenses | 10,594 | 10,458 | 38,247 | 37,618 | |||||||||||
| Total Noninterest Expense | 77,878 | 69,912 | 297,675 | 279,668 | |||||||||||
| Income Before Income Taxes | 35,178 | 27,522 | 119,092 | 116,905 | |||||||||||
| Income taxes | 21,506 | 8,360 | 43,820 | 36,556 | |||||||||||
| Net Income | 13,672 | 19,162 | 75,272 | 80,349 | |||||||||||
| Preferred dividends | (13 | ) | (19 | ) | (58 | ) | (292 | ) | |||||||
| Interest expense on convertible preferred debt | — | 3 | 12 | 51 | |||||||||||
| Net Income Available to Common Stockholders | $ | 13,659 | $ | 19,146 | $ | 75,226 | $ | 80,108 | |||||||
| Earnings per common share-diluted | $ | 0.45 | $ | 0.74 | $ | 2.65 | $ | 3.22 | |||||||
| Weighted average shares outstanding-diluted | 30,209,043 | 25,800,472 | 28,425,652 | 24,873,430 | |||||||||||
| HEARTLAND FINANCIAL USA, INC. | |||||||||||||||||||
| CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) | |||||||||||||||||||
| DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | |||||||||||||||||||
| For the Quarter Ended | |||||||||||||||||||
| 12/31/2017 | 9/30/2017 | 6/30/2017 | 3/31/2017 | 12/31/2016 | |||||||||||||||
| Interest Income | |||||||||||||||||||
| Interest and fees on loans | $ | 86,108 | $ | 82,906 | $ | 68,094 | $ | 66,898 | $ | 69,848 | |||||||||
| Interest on securities: | |||||||||||||||||||
| Taxable | 11,119 | 10,394 | 8,599 | 8,253 | 8,480 | ||||||||||||||
| Nontaxable | 4,401 | 5,086 | 5,020 | 5,191 | 4,292 | ||||||||||||||
| Interest on federal funds sold | 5 | 34 | 3 | — | — | ||||||||||||||
| Interest bearing deposits with the Federal Reserve Bank and other banks and other short-term investments | 435 | 558 | 345 | 209 | 157 | ||||||||||||||
| Total Interest Income | 102,068 | 98,978 | 82,061 | 80,551 | 82,777 | ||||||||||||||
| Interest Expense | |||||||||||||||||||
| Interest on deposits | 5,313 | 5,073 | 4,163 | 3,730 | 3,744 | ||||||||||||||
| Interest on short-term borrowings | 180 | 271 | 90 | 137 | 119 | ||||||||||||||
| Interest on other borrowings | 3,719 | 3,790 | 3,228 | 3,656 | 3,754 | ||||||||||||||
| Total Interest Expense | 9,212 | 9,134 | 7,481 | 7,523 | 7,617 | ||||||||||||||
| Net Interest Income | 92,856 | 89,844 | 74,580 | 73,028 | 75,160 | ||||||||||||||
| Provision for loan losses | 5,328 | 5,705 | 889 | 3,641 | 2,181 | ||||||||||||||
| Net Interest Income After Provision for Loan Losses | 87,528 | 84,139 | 73,691 | 69,387 | 72,979 | ||||||||||||||
| Noninterest Income | |||||||||||||||||||
| Service charges and fees | 9,892 | 10,138 | 9,696 | 9,457 | 8,128 | ||||||||||||||
| Loan servicing income | 1,400 | 1,161 | 1,351 | 1,724 | 1,068 | ||||||||||||||
| Trust fees | 4,336 | 3,872 | 3,979 | 3,631 | 3,718 | ||||||||||||||
| Brokerage and insurance commissions | 1,071 | 950 | 976 | 1,036 | 955 | ||||||||||||||
| Securities gains, net | 1,420 | 1,679 | 1,392 | 2,482 | 1,608 | ||||||||||||||
| Net gains on sale of loans held for sale | 4,290 | 4,997 | 6,817 | 6,147 | 5,840 | ||||||||||||||
| Valuation adjustment on commercial servicing rights | (8 | ) | 5 | 19 | 5 | 8 | |||||||||||||
| Income on bank owned life insurance | 733 | 766 | 656 | 617 | 542 | ||||||||||||||
| Other noninterest income | 2,394 | 1,409 | 738 | 794 | 2,588 | ||||||||||||||
| Total Noninterest Income | 25,528 | 24,977 | 25,624 | 25,893 | 24,455 | ||||||||||||||
| Noninterest Expense | |||||||||||||||||||
| Salaries and employee benefits | 43,289 | 45,225 | 41,126 | 41,767 | 39,115 | ||||||||||||||
| Occupancy | 5,892 | 6,223 | 5,056 | 5,073 | 5,076 | ||||||||||||||
| Furniture and equipment | 3,148 | 2,826 | 2,586 | 2,501 | 2,944 | ||||||||||||||
| Professional fees | 8,537 | 8,450 | 7,583 | 8,309 | 7,195 | ||||||||||||||
| FDIC insurance assessments | 985 | 894 | 909 | 807 | 717 | ||||||||||||||
| Advertising | 2,088 | 1,358 | 1,359 | 2,424 | 2,274 | ||||||||||||||
| Core deposit intangibles and customer relationship intangibles amortization | 1,825 | 1,863 | 1,218 | 1,171 | 1,147 | ||||||||||||||
| Other real estate and loan collection expenses | 687 | 581 | 365 | 828 | 572 | ||||||||||||||
| (Gain)/loss on sales/valuations of assets, net | 833 | 1,342 | (112 | ) | 412 | 414 | |||||||||||||
| Other noninterest expenses | 10,594 | 9,997 | 9,208 | 8,448 | 10,458 | ||||||||||||||
| Total Noninterest Expense | 77,878 | 78,759 | 69,298 | 71,740 | 69,912 | ||||||||||||||
| Income Before Income Taxes | 35,178 | 30,357 | 30,017 | 23,540 | 27,522 | ||||||||||||||
| Income taxes | 21,506 | 8,725 | 8,059 | 5,530 | 8,360 | ||||||||||||||
| Net Income | 13,672 | 21,632 | 21,958 | 18,010 | 19,162 | ||||||||||||||
| Preferred dividends | (13 | ) | (13 | ) | (13 | ) | (19 | ) | (19 | ) | |||||||||
| Interest expense on convertible preferred debt | — | 3 | 4 | 5 | 3 | ||||||||||||||
| Net Income Available to Common Stockholders | $ | 13,659 | $ | 21,622 | $ | 21,949 | $ | 17,996 | $ | 19,146 | |||||||||
| Earnings per common share-diluted | $ | 0.45 | $ | 0.72 | $ | 0.81 | $ | 0.68 | $ | 0.74 | |||||||||
| Weighted average shares outstanding-diluted | 30,209,043 | 29,910,437 | 26,972,580 | 26,627,830 | 25,800,472 | ||||||||||||||
| HEARTLAND FINANCIAL USA, INC. | |||||||||||||||||||
| CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) | |||||||||||||||||||
| DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | |||||||||||||||||||
| As Of | |||||||||||||||||||
| 12/31/2017 | 9/30/2017 | 6/30/2017 | 3/31/2017 | 12/31/2016 | |||||||||||||||
| Assets | |||||||||||||||||||
| Cash and due from banks | $ | 168,723 | $ | 180,751 | $ | 141,100 | $ | 129,386 | $ | 151,290 | |||||||||
| Interest bearing deposits with the Federal Reserve Bank and other banks and other short-term investments | 27,280 | 70,985 | 40,676 | 43,765 | 7,434 | ||||||||||||||
| Cash and cash equivalents | 196,003 | 251,736 | 181,776 | 173,151 | 158,724 | ||||||||||||||
| Time deposits in other financial institutions | 9,820 | 19,793 | 30,241 | 41,539 | 2,105 | ||||||||||||||
| Securities: | |||||||||||||||||||
| Available for sale, at fair value | 2,216,753 | 2,093,385 | 1,789,441 | 1,893,528 | 1,845,864 | ||||||||||||||
| Held to maturity, at cost | 253,550 | 256,355 | 259,586 | 260,616 | 263,662 | ||||||||||||||
| Other investments, at cost | 22,563 | 23,176 | 21,094 | 21,557 | 21,560 | ||||||||||||||
| Loans held for sale | 44,560 | 35,795 | 48,848 | 49,009 | 61,261 | ||||||||||||||
| Loans: | |||||||||||||||||||
| Held to maturity | 6,391,464 | 6,373,415 | 5,325,082 | 5,361,604 | 5,351,719 | ||||||||||||||
| Allowance for loan losses | (55,686 | ) | (54,885 | ) | (54,051 | ) | (54,999 | ) | (54,324 | ) | |||||||||
| Loans, net | 6,335,778 | 6,318,530 | 5,271,031 | 5,306,605 | 5,297,395 | ||||||||||||||
| Premises, furniture and equipment, net | 174,301 | 178,961 | 163,003 | 165,425 | 164,028 | ||||||||||||||
| Goodwill | 236,615 | 236,615 | 141,461 | 141,461 | 127,699 | ||||||||||||||
| Core deposit intangibles and customer relationship intangibles, net | 35,203 | 37,028 | 22,850 | 24,068 | 22,775 | ||||||||||||||
| Servicing rights, net | 25,857 | 26,599 | 34,736 | 35,441 | 35,778 | ||||||||||||||
| Cash surrender value on life insurance | 142,818 | 142,073 | 120,281 | 117,613 | 112,615 | ||||||||||||||
| Other real estate, net | 10,777 | 13,226 | 9,269 | 11,188 | 9,744 | ||||||||||||||
| Other assets | 106,141 | 122,355 | 111,104 | 120,644 | 123,869 | ||||||||||||||
| Total Assets | $ | 9,810,739 | $ | 9,755,627 | $ | 8,204,721 | $ | 8,361,845 | $ | 8,247,079 | |||||||||
| Liabilities and Equity | |||||||||||||||||||
| Liabilities | |||||||||||||||||||
| Deposits: | |||||||||||||||||||
| Demand | $ | 2,983,128 | $ | 3,009,940 | $ | 2,355,410 | $ | 2,319,256 | $ | 2,202,036 | |||||||||
| Savings | 4,240,328 | 4,227,340 | 3,704,579 | 3,940,146 | 3,788,089 | ||||||||||||||
| Time | 923,453 | 994,604 | 870,180 | 830,459 | 857,286 | ||||||||||||||
| Total deposits | 8,146,909 | 8,231,884 | 6,930,169 | 7,089,861 | 6,847,411 | ||||||||||||||
| Short-term borrowings | 324,691 | 171,871 | 139,130 | 155,025 | 306,459 | ||||||||||||||
| Other borrowings | 285,011 | 301,473 | 281,096 | 282,051 | 288,534 | ||||||||||||||
| Accrued expenses and other liabilities | 62,671 | 68,715 | 48,356 | 53,596 | 63,759 | ||||||||||||||
| Total Liabilities | 8,819,282 | 8,773,943 | 7,398,751 | 7,580,533 | 7,506,163 | ||||||||||||||
| Stockholders' Equity | |||||||||||||||||||
| Preferred equity | 938 | 938 | 938 | 938 | 1,357 | ||||||||||||||
| Common stockholders' equity | 990,519 | 980,746 | 805,032 | 780,374 | 739,559 | ||||||||||||||
| Total Equity | 991,457 | 981,684 | 805,970 | 781,312 | 740,916 | ||||||||||||||
| Total Liabilities and Equity | $ | 9,810,739 | $ | 9,755,627 | $ | 8,204,721 | $ | 8,361,845 | $ | 8,247,079 | |||||||||
| HEARTLAND FINANCIAL USA, INC | |||||||||||||||
| CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) | |||||||||||||||
| DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | |||||||||||||||
| For the Quarter Ended December 31, | For the Year Ended December 31, | ||||||||||||||
| 2017 | 2016 | 2017 | 2016 | ||||||||||||
| Average Balances | |||||||||||||||
| Assets | $ | 9,807,621 | $ | 8,280,042 | $ | 9,009,625 | $ | 8,172,576 | |||||||
| Loans, net of unearned | 6,343,923 | 5,473,001 | 5,847,061 | 5,488,112 | |||||||||||
| Deposits | 8,293,006 | 6,928,978 | 7,590,232 | 6,813,781 | |||||||||||
| Earning assets | 8,891,432 | 7,551,997 | 8,181,914 | 7,455,217 | |||||||||||
| Interest bearing liabilities | 5,663,816 | 5,206,393 | 5,426,725 | 5,266,519 | |||||||||||
| Common stockholders' equity | 986,026 | 726,455 | 871,683 | 678,989 | |||||||||||
| Total stockholders' equity | 986,964 | 727,812 | 872,707 | 697,493 | |||||||||||
| Tangible common stockholders' equity(1) | 713,018 | 575,412 | 657,020 | 528,712 | |||||||||||
| Key Performance Ratios | |||||||||||||||
| Annualized return on average assets | 0.55 | % | 0.92 | % | 0.83 | % | 0.98 | % | |||||||
| Annualized return on average common equity (GAAP) | 5.50 | % | 10.48 | % | 8.63 | % | 11.80 | % | |||||||
| Annualized return on average tangible common equity (non-GAAP)(2) | 7.60 | % | 13.24 | % | 11.45 | % | 15.15 | % | |||||||
| Annualized ratio of net charge-offs to average loans | 0.28 | % | 0.18 | % | 0.24 | % | 0.11 | % | |||||||
| Annualized net interest margin (GAAP) | 4.14 | % | 3.96 | % | 4.04 | % | 3.95 | % | |||||||
| Annualized net interest margin, fully tax-equivalent (non-GAAP)(3) | 4.30 | % | 4.14 | % | 4.22 | % | 4.13 | % | |||||||
| Efficiency ratio, fully tax-equivalent (4) | 62.26 | % | 66.29 | % | 65.40 | % | 66.25 | % | |||||||
| Reconciliation of Return on Average Tangible Common Equity (non-GAAP)(5) | |||||||||||||||
| Net income available to common shareholders (GAAP) | $ | 13,659 | $ | 19,146 | $ | 75,226 | $ | 80,108 | |||||||
| Average common stockholders' equity (GAAP) | $ | 986,026 | $ | 726,455 | $ | 871,683 | $ | 678,989 | |||||||
| Less average goodwill | 236,615 | 127,699 | 184,554 | 125,724 | |||||||||||
| Less average core deposit intangibles and customer relationship intangibles, net | 36,393 | 23,344 | 30,109 | 24,553 | |||||||||||
| Average tangible common equity (non-GAAP) | $ | 713,018 | $ | 575,412 | $ | 657,020 | $ | 528,712 | |||||||
| Annualized return on average common equity (GAAP) | 5.50 | % | 10.48 | % | 8.63 | % | 11.80 | % | |||||||
| Annualized return on average tangible common equity (non-GAAP) | 7.60 | % | 13.24 | % | 11.45 | % | 15.15 | % | |||||||
| Reconciliation of Annualized Net Interest Margin, Fully Tax-Equivalent (non-GAAP)(6) | |||||||||||||||
| Net Interest Income (GAAP) | $ | 92,856 | $ | 75,160 | $ | 330,308 | $ | 294,666 | |||||||
| Plus tax-equivalent adjustment(7) | 3,558 | 3,511 | 15,139 | 12,919 | |||||||||||
| Net interest income - tax-equivalent (non-GAAP) | $ | 96,414 | $ | 78,671 | $ | 345,447 | $ | 307,585 | |||||||
| Average earning assets | $ | 8,891,432 | $ | 7,551,997 | $ | 8,181,914 | $ | 7,455,217 | |||||||
| Annualized net interest margin (GAAP) | 4.14 | % | 3.96 | % | 4.04 | % | 3.95 | % | |||||||
| Annualized net interest margin, fully tax-equivalent (non-GAAP) | 4.30 | % | 4.14 | % | 4.22 | % | 4.13 | % | |||||||
| (1) Calculated as common stockholders' equity less goodwill and core deposit intangibles, net. | |||||||||||||||
| (2) Refer to the "Reconciliation of Return on Average Tangible Common Equity (non-GAAP)" table. | |||||||||||||||
| (3) Refer to the "Reconciliation of Annualized Net Interest Margin, Fully Tax-Equivalent (non-GAAP)" table. | |||||||||||||||
| (4) Refer to the "Reconciliation of Non-GAAP Measure-Efficiency Ratio" table that follows for details of this non-GAAP measure. | |||||||||||||||
| (5) Return on average tangible common equity is net income available to common stockholders divided by average common stockholders' equity less goodwill and core deposit intangibles, net. This financial measure is included as it is considered to be a critical metric to analyze and evaluate financial condition and capital strength. This measure should not be considered a substitute for operating results determined in accordance with GAAP. | |||||||||||||||
| (6) Annualized net interest margin, fully tax-equivalent is a non-GAAP measure, which 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. This measure should not be considered a substitute for operating results determined in accordance with GAAP. | |||||||||||||||
| (7) Computed on a tax-equivalent basis using an effective tax rate of 35%. | |||||||||||||||
| HEARTLAND FINANCIAL USA, INC. | |||||||||||||||||||
| CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) | |||||||||||||||||||
| DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | |||||||||||||||||||
| For the Quarter Ended | |||||||||||||||||||
| 12/31/2017 | 9/30/2017 | 6/30/2017 | 3/31/2017 | 12/31/2016 | |||||||||||||||
| Average Balances | |||||||||||||||||||
| Assets | $ | 9,807,621 | $ | 9,639,844 | $ | 8,333,301 | $ | 8,233,510 | $ | 8,280,042 | |||||||||
| Loans, net of unearned | 6,343,923 | 6,286,264 | 5,376,826 | 5,365,654 | 5,473,001 | ||||||||||||||
| Deposits | 8,293,006 | 8,100,028 | 7,050,126 | 6,896,821 | 6,928,978 | ||||||||||||||
| Earning assets | 8,891,432 | 8,726,228 | 7,586,256 | 7,502,496 | 7,551,997 | ||||||||||||||
| Interest bearing liabilities | 5,663,816 | 5,697,713 | 5,146,243 | 5,190,955 | 5,206,393 | ||||||||||||||
| Common stockholders' equity | 986,026 | 954,511 | 791,039 | 751,671 | 726,455 | ||||||||||||||
| Total stockholders' equity | 986,964 | 955,449 | 791,977 | 752,958 | 727,812 | ||||||||||||||
| Tangible common stockholders' equity(1) | 713,018 | 691,464 | 625,929 | 596,006 | 575,412 | ||||||||||||||
| Key Performance Ratios | |||||||||||||||||||
| Annualized return on average assets | 0.55 | % | 0.89 | % | 1.06 | % | 0.89 | % | 0.92 | % | |||||||||
| Annualized return on average common equity (GAAP) | 5.50 | % | 8.99 | % | 11.13 | % | 9.71 | % | 10.48 | % | |||||||||
| Annualized return on average tangible common equity (non-GAAP)(2) | 7.60 | % | 12.41 | % | 14.07 | % | 12.25 | % | 13.24 | % | |||||||||
| Annualized ratio of net charge-offs to average loans | 0.28 | % | 0.31 | % | 0.14 | % | 0.22 | % | 0.18 | % | |||||||||
| Annualized net interest margin (GAAP) | 4.14 | % | 4.08 | % | 3.94 | % | 3.95 | % | 3.96 | % | |||||||||
| Annualized net interest margin, fully tax-equivalent (non-GAAP)(3) | 4.30 | % | 4.26 | % | 4.14 | % | 4.16 | % | 4.14 | % | |||||||||
| Efficiency ratio, fully tax-equivalent(4) | 62.26 | % | 64.54 | % | 65.61 | % | 69.95 | % | 66.29 | % | |||||||||
| Reconciliation of Return on Average Tangible Common Equity (non-GAAP)(5) | |||||||||||||||||||
| Net income available to common shareholders (GAAP) | $ | 13,659 | $ | 21,622 | $ | 21,949 | $ | 17,996 | $ | 19,146 | |||||||||
| Average common stockholders' equity (GAAP) | $ | 986,026 | $ | 954,511 | $ | 791,039 | $ | 751,671 | $ | 726,455 | |||||||||
| Less average goodwill | 236,615 | 226,097 | 141,461 | 132,440 | 127,699 | ||||||||||||||
| Less average core deposit intangibles and customer relationship intangibles, net | 36,393 | 36,950 | 23,649 | 23,225 | 23,344 | ||||||||||||||
| Average tangible common equity (non-GAAP) | $ | 713,018 | $ | 691,464 | $ | 625,929 | $ | 596,006 | $ | 575,412 | |||||||||
| Annualized return on average common equity (GAAP) | 5.50 | % | 8.99 | % | 11.13 | % | 9.71 | % | 10.48 | % | |||||||||
| Annualized return on average tangible common equity (non-GAAP) | 7.60 | % | 12.41 | % | 14.07 | % | 12.25 | % | 13.24 | % | |||||||||
| Reconciliation of Annualized Net Interest Margin, Fully Tax-Equivalent (non-GAAP)(6) | |||||||||||||||||||
| Net Interest Income (GAAP) | $ | 92,856 | $ | 89,844 | $ | 74,580 | $ | 73,028 | $ | 75,160 | |||||||||
| Plus tax-equivalent adjustment(7) | 3,558 | 3,925 | 3,796 | 3,860 | 3,511 | ||||||||||||||
| Net interest income, fully tax-equivalent (non-GAAP) | $ | 96,414 | $ | 93,769 | $ | 78,376 | $ | 76,888 | $ | 78,671 | |||||||||
| Average earning assets | $ | 8,891,432 | $ | 8,726,228 | $ | 7,586,256 | $ | 7,502,496 | $ | 7,551,997 | |||||||||
| Annualized net interest margin (GAAP) | 4.14 | % | 4.08 | % | 3.94 | % | 3.95 | % | 3.96 | % | |||||||||
| Annualized net interest margin, fully tax-equivalent (non-GAAP) | 4.30 | % | 4.26 | % | 4.14 | % | 4.16 | % | 4.14 | % | |||||||||
| (1) Calculated as common stockholders' equity less goodwill and core deposit intangibles, net. | |||||||||||||||||||
| (2) Refer to the "Reconciliation of Return on Average Tangible Common Equity (non-GAAP)" table. | |||||||||||||||||||
| (3) Refer to the "Reconciliation of Annualized Net Interest Margin, Fully Tax-Equivalent (non-GAAP)" table. | |||||||||||||||||||
| (4) Refer to the "Reconciliation of Non-GAAP Measure-Efficiency Ratio" table that follows for details of this non-GAAP measure. | |||||||||||||||||||
| (5) Return on average tangible common equity is net income available to common stockholders divided by average common stockholders' equity less goodwill and core deposit intangibles, net. This financial measure is included as it is considered to be a critical metric to analyze and evaluate financial condition and capital strength. This measure should not be considered a substitute for operating results determined in accordance with GAAP. | |||||||||||||||||||
| (6) Annualized net interest margin, fully tax-equivalent is a non-GAAP measure, which 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. This measure should not be considered a substitute for operating results determined in accordance with GAAP. | |||||||||||||||||||
| (7) Computed on a tax-equivalent basis using an effective tax rate of 35%. | |||||||||||||||||||
| HEARTLAND FINANCIAL USA, INC. | |||||||||||||||||||
| CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) | |||||||||||||||||||
| DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | |||||||||||||||||||
| For the Quarter Ended December 31, | For the Year Ended December 31, | ||||||||||||||||||
| Reconciliation of Non-GAAP Measure-Efficiency Ratio(1) | 2017 | 2016 | 2017 | 2016 | |||||||||||||||
| Net interest income | $ | 92,856 | $ | 75,160 | $ | 330,308 | $ | 294,666 | |||||||||||
| Tax-equivalent adjustment(2) | 3,558 | 3,511 | 15,139 | 12,919 | |||||||||||||||
| Fully tax-equivalent net interest income | 96,414 | 78,671 | 345,447 | 307,585 | |||||||||||||||
| Noninterest income | 25,528 | 24,455 | 102,022 | 113,601 | |||||||||||||||
| Securities gains, net | (1,420 | ) | (1,608 | ) | (6,973 | ) | (11,340 | ) | |||||||||||
| Gain on extinguishment of debt | (1,280 | ) | — | (1,280 | ) | — | |||||||||||||
| Adjusted income | $ | 119,242 | $ | 101,518 | $ | 439,216 | $ | 409,846 | |||||||||||
| Total noninterest expenses | $ | 77,878 | $ | 69,912 | $ | 297,675 | $ | 279,668 | |||||||||||
| Less: | |||||||||||||||||||
| Core deposit intangibles and customer relationship intangibles amortization | 1,825 | 1,147 | 6,077 | 5,630 | |||||||||||||||
| Partnership investment in tax credit projects | 984 | 1,051 | 1,860 | 1,051 | |||||||||||||||
| (Gain)/loss on sales/valuations of assets, net | 833 | 414 | 2,475 | 1,478 | |||||||||||||||
| Adjusted noninterest expenses | $ | 74,236 | $ | 67,300 | $ | 287,263 | $ | 271,509 | |||||||||||
| Efficiency ratio, fully tax-equivalent (non-GAAP) | 62.26 | % | 66.29 | % | 65.40 | % | 66.25 | % | |||||||||||
| Reconciliation of Non-GAAP Measure-Efficiency Ratio(1) | For the Quarter Ended | ||||||||||||||||||
| 12/31/2017 | 9/30/2017 | 6/30/2017 | 3/31/2017 | 12/31/2016 | |||||||||||||||
| Net interest income | $ | 92,856 | $ | 89,844 | $ | 74,580 | $ | 73,028 | $ | 75,160 | |||||||||
| Tax-equivalent adjustment(2) | 3,558 | 3,925 | 3,796 | 3,860 | 3,511 | ||||||||||||||
| Fully tax-equivalent net interest income | 96,414 | 93,769 | 78,376 | 76,888 | 78,671 | ||||||||||||||
| Noninterest income | 25,528 | 24,977 | 25,624 | 25,893 | 24,455 | ||||||||||||||
| Securities gains, net | (1,420 | ) | (1,679 | ) | (1,392 | ) | (2,482 | ) | (1,608 | ) | |||||||||
| Gain on extinguishment of debt | (1,280 | ) | — | — | — | — | |||||||||||||
| Adjusted income | $ | 119,242 | $ | 117,067 | $ | 102,608 | $ | 100,299 | $ | 101,518 | |||||||||
| Total noninterest expenses | $ | 77,878 | $ | 78,759 | $ | 69,298 | $ | 71,740 | $ | 69,912 | |||||||||
| Less: | |||||||||||||||||||
| Core deposit intangibles and customer relationship intangibles amortization | 1,825 | 1,863 | 1,218 | 1,171 | 1,147 | ||||||||||||||
| Partnership investment in tax credit projects | 984 | — | 876 | — | 1,051 | ||||||||||||||
| (Gain)/loss on sales/valuation of assets, net | 833 | 1,342 | (112 | ) | 412 | 414 | |||||||||||||
| Adjusted noninterest expenses | $ | 74,236 | $ | 75,554 | $ | 67,316 | $ | 70,157 | $ | 67,300 | |||||||||
| Efficiency ratio, fully tax-equivalent (non-GAAP) | 62.26 | % | 64.54 | % | 65.61 | % | 69.95 | % | 66.29 | % | |||||||||
| (1) 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 historic rehabilitation tax credits. 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 the table. This measure should not be considered a substitute for operating results determined in accordance with GAAP. | |||||||||||||||||||
| (2) Computed on a tax-equivalent basis using an effective tax rate of 35%. | |||||||||||||||||||
| HEARTLAND FINANCIAL USA, INC. | |||||||||||||||||||
| CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) | |||||||||||||||||||
| DOLLARS IN THOUSANDS, EXCEPT PER SHARE AND FULL TIME EQUIVALENT EMPLOYEE DATA | |||||||||||||||||||
| As of and for the Quarter Ended | |||||||||||||||||||
| 12/31/2017 | 9/30/2017 | 6/30/2017 | 3/31/2017 | 12/31/2016 | |||||||||||||||
| Common Share Data | |||||||||||||||||||
| Book value per common share | $ | 33.07 | $ | 32.75 | $ | 30.15 | $ | 29.26 | $ | 28.31 | |||||||||
| Tangible book value per common share (non-GAAP)(1) | $ | 23.99 | $ | 23.61 | $ | 24.00 | $ | 23.05 | $ | 22.55 | |||||||||
| Common shares outstanding, net of treasury stock | 29,953,356 | 29,946,069 | 26,701,226 | 26,674,121 | 26,119,929 | ||||||||||||||
| Tangible common equity ratio (non-GAAP)(2) | 7.53 | % | 7.46 | % | 7.97 | % | 7.50 | % | 7.28 | % | |||||||||
| Reconciliation of Tangible Book Value Per Common Share (non-GAAP)(3) | |||||||||||||||||||
| Common stockholders' equity (GAAP) | $ | 990,518 | $ | 980,746 | $ | 805,032 | $ | 780,374 | $ | 739,559 | |||||||||
| Less goodwill | 236,615 | 236,615 | 141,461 | 141,461 | 127,699 | ||||||||||||||
| Less core deposit intangibles and customer relationship intangibles, net | 35,203 | 37,028 | 22,850 | 24,068 | 22,775 | ||||||||||||||
| Tangible common stockholders' equity (non-GAAP) | $ | 718,700 | $ | 707,103 | $ | 640,721 | $ | 614,845 | $ | 589,085 | |||||||||
| Common shares outstanding, net of treasury stock | 29,953,356 | 29,946,069 | 26,701,226 | 26,674,121 | 26,119,929 | ||||||||||||||
| Common stockholders' equity (book value) per share (GAAP) | $ | 33.07 | $ | 32.75 | $ | 30.15 | $ | 29.26 | $ | 28.31 | |||||||||
| Tangible book value per common share (non-GAAP) | $ | 23.99 | $ | 23.61 | $ | 24.00 | $ | 23.05 | $ | 22.55 | |||||||||
| Reconciliation of Tangible Common Equity Ratio (non-GAAP)(4) | |||||||||||||||||||
| Total assets (GAAP) | $ | 9,810,739 | $ | 9,755,627 | $ | 8,204,721 | $ | 8,361,845 | $ | 8,247,079 | |||||||||
| Less goodwill | 236,615 | 236,615 | 141,461 | 141,461 | 127,699 | ||||||||||||||
| Less core deposit intangibles and customer relationship intangibles, net | 35,203 | 37,028 | 22,850 | 24,068 | 22,775 | ||||||||||||||
| Total tangible assets (non-GAAP) | $ | 9,538,921 | $ | 9,481,984 | $ | 8,040,410 | $ | 8,196,316 | $ | 8,096,605 | |||||||||
| Tangible common equity ratio (non-GAAP) | 7.53 | % | 7.46 | % | 7.97 | % | 7.50 | % | 7.28 | % | |||||||||
| Loan Data | |||||||||||||||||||
| Loans held to maturity: | |||||||||||||||||||
| Commercial and commercial real estate | $ | 4,809,875 | $ | 4,777,856 | $ | 3,803,011 | $ | 3,849,748 | $ | 3,825,847 | |||||||||
| Residential mortgage | 624,279 | 635,611 | 596,385 | 604,902 | 617,924 | ||||||||||||||
| Agricultural and agricultural real estate | 511,588 | 511,764 | 495,243 | 481,125 | 489,318 | ||||||||||||||
| Consumer | 447,484 | 450,088 | 431,052 | 427,962 | 420,613 | ||||||||||||||
| Unearned discount and deferred loan fees | (1,762 | ) | (1,904 | ) | (609 | ) | (2,133 | ) | (1,983 | ) | |||||||||
| Total loans held to maturity | $ | 6,391,464 | $ | 6,373,415 | $ | 5,325,082 | $ | 5,361,604 | $ | 5,351,719 | |||||||||
| Other Selected Trend Information | |||||||||||||||||||
| Effective tax rate | 61.13 | % | 28.74 | % | 26.85 | % | 23.49 | % | 30.38 | % | |||||||||
| Full time equivalent employees | 2,008 | 2,024 | 1,862 | 1,896 | 1,864 | ||||||||||||||
| Total residential mortgage loan applications | $ | 232,946 | $ | 271,476 | $ | 308,113 | $ | 248,614 | $ | 304,018 | |||||||||
| Residential mortgage loans originated | $ | 185,580 | $ | 198,911 | $ | 216,637 | $ | 161,851 | $ | 278,065 | |||||||||
| Residential mortgage loans sold | $ | 166,346 | $ | 188,501 | $ | 180,296 | $ | 172,521 | $ | 269,333 | |||||||||
| Residential mortgage loan servicing portfolio | $ | 3,558,090 | $ | 3,557,866 | $ | 4,340,243 | $ | 4,338,311 | $ | 4,308,580 | |||||||||
| (1) Refer to the "Reconciliation of Tangible Book Value Per Common Share (non-GAAP)" table. | |||||||||||||||||||
| (2) Refer to the "Reconciliation of Tangible Common Equity Ratio (non-GAAP)" table. | |||||||||||||||||||
| (3) Tangible book value per common share is total common stockholders' equity less goodwill and core deposit intangibles, net divided by common shares outstanding, net of treasury. This is a non-GAAP financial measure but has been included as it is considered to be a critical metric with which to analyze and evaluate financial condition and capital strength. This measure should not be considered a substitute for operating results determined in accordance with GAAP. | |||||||||||||||||||
| (4) The tangible common equity ratio is total common stockholders' equity less goodwill and core deposit intangibles, net divided by total assets less goodwill and core deposit intangibles, net. This is a non-GAAP financial measure but has been included as it is considered to be a critical metric with which to analyze and evaluate financial condition and capital strength. This measure should not be considered a substitute for operating results determined in accordance with GAAP. | |||||||||||||||||||
| HEARTLAND FINANCIAL USA, INC. | |||||||||||||||||||
| CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) | |||||||||||||||||||
| DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | |||||||||||||||||||
| As of and for the Quarter Ended | |||||||||||||||||||
| 12/31/2017 | 9/30/2017 | 6/30/2017 | 3/31/2017 | 12/31/2016 | |||||||||||||||
| Allowance for Loan Losses | |||||||||||||||||||
| Balance, beginning of period | $ | 54,885 | $ | 54,051 | $ | 54,999 | $ | 54,324 | $ | 54,653 | |||||||||
| Provision for loan losses | 5,328 | 5,705 | 889 | 3,641 | 2,181 | ||||||||||||||
| Charge-offs | (5,628 | ) | (5,759 | ) | (2,766 | ) | (3,718 | ) | (3,555 | ) | |||||||||
| Recoveries | 1,101 | 888 | 929 | 752 | 1,045 | ||||||||||||||
| Balance, end of period | $ | 55,686 | $ | 54,885 | $ | 54,051 | $ | 54,999 | $ | 54,324 | |||||||||
| Asset Quality | |||||||||||||||||||
| Nonaccrual loans | $ | 62,581 | $ | 63,456 | $ | 65,393 | $ | 62,868 | $ | 64,299 | |||||||||
| Loans past due ninety days or more as to interest or principal payments | 830 | 2,348 | 698 | 872 | 86 | ||||||||||||||
| Other real estate owned | 10,777 | 13,226 | 9,269 | 11,188 | 9,744 | ||||||||||||||
| Other repossessed assets | 411 | 773 | 675 | 739 | 663 | ||||||||||||||
| Total nonperforming assets | $ | 74,599 | $ | 79,803 | $ | 76,035 | $ | 75,667 | $ | 74,792 | |||||||||
| Performing troubled debt restructured loans | $ | 6,617 | $ | 10,040 | $ | 11,157 | $ | 11,010 | $ | 10,380 | |||||||||
| Nonperforming Assets Activity | |||||||||||||||||||
| Balance, beginning of period | $ | 79,803 | $ | 76,035 | $ | 75,667 | $ | 74,792 | $ | 69,465 | |||||||||
| Net loan charge offs | (4,527 | ) | (4,871 | ) | (1,837 | ) | (2,966 | ) | (2,510 | ) | |||||||||
| New nonperforming loans | 9,911 | 9,117 | 13,700 | 14,819 | 23,035 | ||||||||||||||
| Acquired nonperforming assets | — | 7,991 | — | — | — | ||||||||||||||
| Reduction of nonperforming loans(1) | (7,177 | ) | (5,183 | ) | (7,443 | ) | (10,037 | ) | (13,707 | ) | |||||||||
| OREO/Repossessed assets sales proceeds | (2,917 | ) | (3,328 | ) | (3,734 | ) | (715 | ) | (1,037 | ) | |||||||||
| OREO/Repossessed assets writedowns, net | (146 | ) | (56 | ) | (259 | ) | (279 | ) | (274 | ) | |||||||||
| Net activity at Citizens Finance Co. | (348 | ) | 98 | (59 | ) | 53 | (180 | ) | |||||||||||
| Balance, end of period | $ | 74,599 | $ | 79,803 | $ | 76,035 | $ | 75,667 | $ | 74,792 | |||||||||
| Asset Quality Ratios | |||||||||||||||||||
| Ratio of nonperforming loans to total loans | 0.99 | % | 1.03 | % | 1.24 | % | 1.19 | % | 1.20 | % | |||||||||
| Ratio of nonperforming assets to total assets | 0.76 | % | 0.82 | % | 0.93 | % | 0.90 | % | 0.91 | % | |||||||||
| Annualized ratio of net loan charge-offs to average loans | 0.28 | % | 0.31 | % | 0.14 | % | 0.22 | % | 0.18 | % | |||||||||
| Allowance for loan losses as a percent of loans | 0.87 | % | 0.86 | % | 1.02 | % | 1.03 | % | 1.02 | % | |||||||||
| Allowance for loan losses as a percent of nonperforming loans | 87.82 | % | 83.41 | % | 81.78 | % | 86.29 | % | 84.37 | % | |||||||||
| Loans delinquent 30-89 days as a percent of total loans | 0.27 | % | 0.33 | % | 0.38 | % | 0.44 | % | 0.37 | % | |||||||||
| (1) Includes principal reductions, transfers to performing status and transfers to OREO. | |||||||||||||||||||
| HEARTLAND FINANCIAL USA, INC. | |||||||||||||||||||||
| CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) | |||||||||||||||||||||
| DOLLARS IN THOUSANDS | |||||||||||||||||||||
| For the Quarter Ended | |||||||||||||||||||||
| December 31, 2017 | December 31, 2016 | ||||||||||||||||||||
| Average Balance | Interest | Rate | Average Balance | Interest | Rate | ||||||||||||||||
| Earning Assets | |||||||||||||||||||||
| Securities: | |||||||||||||||||||||
| Taxable | $ | 1,881,708 | $ | 11,119 | 2.34 | % | $ | 1,471,966 | $ | 8,480 | 2.29 | % | |||||||||
| Nontaxable(1) | 555,390 | 6,771 | 4.84 | 539,347 | 6,603 | 4.87 | |||||||||||||||
| Total securities | 2,437,098 | 17,890 | 2.91 | 2,011,313 | 15,083 | 2.98 | |||||||||||||||
| Interest bearing deposits with the Federal Reserve Bank and other banks and other short-term investments | 162,325 | 435 | 1.06 | 122,727 | 157 | 0.51 | |||||||||||||||
| Federal funds sold | 3,106 | 5 | 0.64 | 398 | — | — | |||||||||||||||
| Loans:(2) | |||||||||||||||||||||
| Commercial and commercial real estate(1) | 4,725,572 | 59,370 | 4.98 | 3,864,826 | 48,124 | 4.95 | |||||||||||||||
| Residential mortgage | 658,563 | 9,750 | 5.87 | 699,739 | 7,035 | 4.00 | |||||||||||||||
| Agricultural and agricultural real estate(1) | 515,426 | 6,115 | 4.71 | 485,158 | 5,624 | 4.61 | |||||||||||||||
| Consumer | 444,362 | 9,820 | 8.77 | 423,278 | 8,184 | 7.69 | |||||||||||||||
| Fees on loans | — | 2,241 | — | — | 2,081 | — | |||||||||||||||
| Less: allowance for loan losses | (55,020 | ) | — | — | (55,442 | ) | — | — | |||||||||||||
| Net loans | 6,288,903 | 87,296 | 5.51 | 5,417,559 | 71,048 | 5.22 | |||||||||||||||
| Total earning assets | 8,891,432 | 105,626 | 4.71 | % | 7,551,997 | 86,288 | 4.55 | % | |||||||||||||
| Nonearning Assets | 916,189 | 728,045 | |||||||||||||||||||
| Total Assets | $ | 9,807,621 | $ | 8,280,042 | |||||||||||||||||
| Interest Bearing Liabilities | |||||||||||||||||||||
| Savings | $ | 4,244,711 | $ | 3,335 | 0.31 | % | $ | 3,767,398 | $ | 2,012 | 0.21 | % | |||||||||
| Time, $100,000 and over | 399,331 | 777 | 0.77 | 380,701 | 761 | 0.80 | |||||||||||||||
| Other time deposits | 562,595 | 1,201 | 0.85 | 512,874 | 971 | 0.75 | |||||||||||||||
| Short-term borrowings | 161,959 | 180 | 0.44 | 252,175 | 119 | 0.19 | |||||||||||||||
| Other borrowings | 295,220 | 3,719 | 5.00 | 293,245 | 3,754 | 5.09 | |||||||||||||||
| Total interest bearing liabilities | 5,663,816 | 9,212 | 0.65 | % | 5,206,393 | 7,617 | 0.58 | % | |||||||||||||
| Noninterest Bearing Liabilities | |||||||||||||||||||||
| Noninterest bearing deposits | 3,086,369 | 2,268,005 | |||||||||||||||||||
| Accrued interest and other liabilities | 70,472 | 77,832 | |||||||||||||||||||
| Total noninterest bearing liabilities | 3,156,841 | 2,345,837 | |||||||||||||||||||
| Stockholders' Equity | 986,964 | 727,812 | |||||||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 9,807,621 | $ | 8,280,042 | |||||||||||||||||
| Net interest income, fully tax-equivalent (non-GAAP)(1) | $ | 96,414 | $ | 78,671 | |||||||||||||||||
| Net interest spread(1) | 4.06 | % | 3.97 | % | |||||||||||||||||
| Net interest income, fully tax-equivalent (non-GAAP) to total earning assets(3) | 4.30 | % | 4.14 | % | |||||||||||||||||
| Interest bearing liabilities to earning assets | 63.70 | % | 68.94 | % | |||||||||||||||||
| Reconciliation of annualized net interest margin, fully tax-equivalent (non-GAAP)(3) | |||||||||||||||||||||
| Net interest income, fully tax-equivalent (non-GAAP) | $ | 96,414 | $ | 78,671 | |||||||||||||||||
| Adjustments for tax-equivalent interest(1) | (3,558 | ) | (3,511 | ) | |||||||||||||||||
| Net interest income (GAAP) | $ | 92,856 | $ | 75,160 | |||||||||||||||||
| Average earning assets | $ | 8,891,432 | $ | 7,551,997 | |||||||||||||||||
| Annualized net interest margin (GAAP) | 4.14 | % | 3.96 | % | |||||||||||||||||
| Annualized net interest margin, fully tax-equivalent (non-GAAP) | 4.30 | % | 4.14 | % | |||||||||||||||||
| (1) Computed on a tax-equivalent basis using an effective tax rate of 35% | |||||||||||||||||||||
| (2) Nonaccrual loans are included in the average loans outstanding. | |||||||||||||||||||||
| (3) Annualized net interest margin, fully tax-equivalent is a non-GAAP measure, which 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. This measure should not be considered a substitute for operating results determined in accordance with GAAP. | |||||||||||||||||||||
| HEARTLAND FINANCIAL USA, INC. | |||||||||||||||||||||
| CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) | |||||||||||||||||||||
| DOLLARS IN THOUSANDS | |||||||||||||||||||||
| For the Year Ended | |||||||||||||||||||||
| December 31, 2017 | December 31, 2016 | ||||||||||||||||||||
| Average Balance | Interest | Rate | Average Balance | Interest | Rate | ||||||||||||||||
| Earning Assets | |||||||||||||||||||||
| Securities: | |||||||||||||||||||||
| Taxable | $ | 1,629,936 | $ | 38,365 | 2.35 | % | $ | 1,466,062 | $ | 32,858 | 2.24 | % | |||||||||
| Nontaxable(1) | 617,267 | 30,305 | 4.91 | 465,178 | 23,208 | 4.99 | |||||||||||||||
| Total securities | 2,247,203 | 68,670 | 3.06 | 1,931,240 | 56,066 | 2.90 | |||||||||||||||
| Interest bearing deposits with the Federal Reserve Bank and other banks and other short-term investments | 136,555 | 1,547 | 1.13 | 78,503 | 396 | 0.50 | |||||||||||||||
| Federal funds sold | 5,932 | 42 | 0.71 | 9,464 | 12 | 0.13 | |||||||||||||||
| Loans:(2) | |||||||||||||||||||||
| Commercial and commercial real estate(1) | 4,256,158 | 211,316 | 4.96 | 3,846,285 | 190,101 | 4.94 | |||||||||||||||
| Residential mortgage | 655,515 | 30,242 | 4.61 | 738,634 | 30,168 | 4.08 | |||||||||||||||
| Agricultural and agricultural real estate(1) | 498,032 | 23,651 | 4.75 | 480,221 | 22,576 | 4.70 | |||||||||||||||
| Consumer | 437,356 | 35,194 | 8.05 | 422,972 | 32,636 | 7.72 | |||||||||||||||
| Fees on loans | 8,135 | — | 7,443 | — | |||||||||||||||||
| Less: allowance for loan losses | (54,837 | ) | — | — | (52,102 | ) | — | — | |||||||||||||
| Net loans | 5,792,224 | 308,538 | 5.33 | 5,436,010 | 282,924 | 5.20 | |||||||||||||||
| Total earning assets | 8,181,914 | 378,797 | 4.63 | % | 7,455,217 | 339,398 | 4.55 | % | |||||||||||||
| Nonearning Assets | 827,711 | 717,359 | |||||||||||||||||||
| Total Assets | $ | 9,009,625 | $ | 8,172,576 | |||||||||||||||||
| Interest Bearing Liabilities | |||||||||||||||||||||
| Savings | $ | 4,044,032 | $ | 11,107 | 0.27 | % | $ | 3,680,535 | $ | 8,000 | 0.22 | % | |||||||||
| Time, $100,000 and over | 377,090 | 3,016 | 0.80 | 424,802 | 3,178 | 0.75 | |||||||||||||||
| Other time deposits | 525,165 | 4,156 | 0.79 | 577,908 | 4,761 | 0.82 | |||||||||||||||
| Short-term borrowings | 190,040 | 678 | 0.36 | 298,734 | 1,202 | 0.40 | |||||||||||||||
| Other borrowings | 290,398 | 14,393 | 4.96 | 284,540 | 14,672 | 5.16 | |||||||||||||||
| Total interest bearing liabilities | 5,426,725 | 33,350 | 0.61 | % | 5,266,519 | 31,813 | 0.60 | % | |||||||||||||
| Noninterest Bearing Liabilities | |||||||||||||||||||||
| Noninterest bearing deposits | 2,643,945 | 2,130,536 | |||||||||||||||||||
| Accrued interest and other liabilities | 66,248 | 78,028 | |||||||||||||||||||
| Total noninterest bearing liabilities | 2,710,193 | 2,208,564 | |||||||||||||||||||
| Stockholders' Equity | 872,707 | 697,493 | |||||||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 9,009,625 | $ | 8,172,576 | |||||||||||||||||
| Net interest income, fully tax-equivalent (non-GAAP)(1) | $ | 345,447 | $ | 307,585 | |||||||||||||||||
| Net interest spread(1) | 4.02 | % | 3.95 | % | |||||||||||||||||
| Net interest income, fully tax-equivalent (non-GAAP) to total earning assets(3) | 4.22 | % | 4.13 | % | |||||||||||||||||
| Interest bearing liabilities to earning assets | 66.33 | % | 70.64 | % | |||||||||||||||||
| Reconciliation of annualized net interest margin, fully tax-equivalent (non-GAAP)(3) | |||||||||||||||||||||
| Net interest income, fully tax-equivalent (non-GAAP) | $ | 345,447 | $ | 307,585 | |||||||||||||||||
| Adjustments for tax-equivalent interest(1) | (15,139 | ) | (12,919 | ) | |||||||||||||||||
| Net interest income (GAAP) | $ | 330,308 | $ | 294,666 | |||||||||||||||||
| Average earning assets | $ | 8,181,914 | $ | 7,455,217 | |||||||||||||||||
| Annualized net interest margin (GAAP) | 4.04 | % | 3.95 | % | |||||||||||||||||
| Annualized net interest margin, fully tax-equivalent (non-GAAP) | 4.22 | % | 4.13 | % | |||||||||||||||||
| (1) Computed on a tax-equivalent basis using an effective tax rate of 35%. | |||||||||||||||||||||
| (2) Nonaccrual loans are included in the average loans outstanding. | |||||||||||||||||||||
| (3) Net interest margin, fully tax-equivalent is a non-GAAP measure, which 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. This measure should not be considered a substitute for operating results determined in accordance with GAAP. | |||||||||||||||||||||
| HEARTLAND FINANCIAL USA, INC. | |||||||||||||||
| SELECTED FINANCIAL DATA - SUBSIDIARY BANKS (Unaudited) | |||||||||||||||
| DOLLARS IN THOUSANDS | |||||||||||||||
| As of and For the Quarter Ended | |||||||||||||||
| 12/31/2017 | 9/30/2017 | 6/30/2017 | 3/31/2017 | 12/31/2016 | |||||||||||
| Total Assets | |||||||||||||||
| Citywide Banks(1) | $ | 2,289,956 | $ | 2,391,727 | $ | 817,859 | $ | 839,505 | $ | 901,782 | |||||
| New Mexico Bank & Trust | 1,453,534 | 1,425,185 | 1,407,991 | 1,382,480 | 1,374,647 | ||||||||||
| Dubuque Bank and Trust Company | 1,443,419 | 1,479,647 | 1,441,655 | 1,436,038 | 1,497,775 | ||||||||||
| Wisconsin Bank & Trust | 1,079,222 | 1,030,192 | 1,035,628 | 1,033,633 | 1,065,715 | ||||||||||
| Premier Valley Bank | 925,078 | 886,495 | 850,956 | 854,838 | 640,684 | ||||||||||
| Illinois Bank & Trust | 783,127 | 761,285 | 740,153 | 746,669 | 742,173 | ||||||||||
| Morrill & Janes Bank and Trust Company | 654,871 | 719,246 | 748,286 | 871,819 | 863,544 | ||||||||||
| Arizona Bank & Trust | 602,182 | 566,951 | 566,339 | 578,597 | 582,266 | ||||||||||
| Rocky Mountain Bank | 487,136 | 486,790 | 476,829 | 479,121 | 477,063 | ||||||||||
| Minnesota Bank & Trust | 210,157 | 217,246 | 216,957 | 213,789 | 229,114 | ||||||||||
| Total Portfolio Loans | |||||||||||||||
| Citywide Banks(1) | $ | 1,460,111 | $ | 1,540,016 | $ | 558,573 | $ | 572,254 | $ | 609,760 | |||||
| New Mexico Bank & Trust | 1,025,574 | 989,367 | 934,734 | 906,477 | 924,249 | ||||||||||
| Dubuque Bank and Trust Company | 887,053 | 868,370 | 884,640 | 903,617 | 905,242 | ||||||||||
| Wisconsin Bank & Trust | 687,957 | 684,530 | 662,502 | 644,380 | 650,254 | ||||||||||
| Premier Valley Bank | 497,852 | 458,443 | 447,148 | 440,406 | 348,879 | ||||||||||
| Illinois Bank & Trust | 472,072 | 462,150 | 447,887 | 469,105 | 473,008 | ||||||||||
| Morrill & Janes Bank and Trust Company | 448,711 | 468,197 | 515,896 | 546,123 | 548,544 | ||||||||||
| Arizona Bank & Trust | 423,872 | 401,516 | 377,358 | 384,028 | 384,706 | ||||||||||
| Rocky Mountain Bank | 335,061 | 338,305 | 335,173 | 330,921 | 347,839 | ||||||||||
| Minnesota Bank & Trust | 140,682 | 142,650 | 144,112 | 142,736 | 144,098 | ||||||||||
| Total Deposits | |||||||||||||||
| Citywide Banks(1) | $ | 1,895,540 | $ | 1,924,605 | $ | 682,872 | $ | 712,377 | $ | 733,449 | |||||
| New Mexico Bank & Trust | 1,229,324 | 1,221,134 | 1,190,758 | 1,184,675 | 1,091,436 | ||||||||||
| Dubuque Bank and Trust Company | 1,084,415 | 1,139,512 | 1,178,368 | 1,212,899 | 1,231,016 | ||||||||||
| Wisconsin Bank & Trust | 890,835 | 852,489 | 874,845 | 868,033 | 899,676 | ||||||||||
| Premier Valley Bank | 705,142 | 714,605 | 681,298 | 708,226 | 510,142 | ||||||||||
| Illinois Bank & Trust | 692,227 | 691,680 | 669,532 | 641,750 | 636,419 | ||||||||||
| Morrill & Janes Bank and Trust Company | 563,638 | 605,390 | 627,857 | 721,075 | 738,036 | ||||||||||
| Arizona Bank & Trust | 522,490 | 500,270 | 493,419 | 501,111 | 477,213 | ||||||||||
| Rocky Mountain Bank | 424,487 | 426,405 | 416,436 | 420,067 | 414,344 | ||||||||||
| Minnesota Bank & Trust | 178,036 | 189,749 | 193,365 | 189,324 | 194,368 | ||||||||||
| Net Income (Loss) | |||||||||||||||
| Citywide Banks(1) | $ | 1,069 | $ | 4,541 | $ | 746 | $ | 1,366 | $ | 1,572 | |||||
| New Mexico Bank & Trust | 2,954 | 4,972 | 5,855 | 4,419 | 4,061 | ||||||||||
| Dubuque Bank and Trust Company | 9,027 | 703 | 3,477 | 2,056 | 806 | ||||||||||
| Wisconsin Bank & Trust | 2,210 | 3,368 | 3,448 | 1,968 | 2,970 | ||||||||||
| Premier Valley Bank | 1,508 | 2,907 | 2,573 | 1,306 | 2,969 | ||||||||||
| Illinois Bank & Trust | 794 | 2,286 | 1,984 | 1,991 | 1,917 | ||||||||||
| Morrill & Janes Bank and Trust Company | 650 | 1,760 | 2,210 | 2,227 | 2,519 | ||||||||||
| Arizona Bank & Trust | (103 | ) | 1,451 | 1,073 | 1,486 | 1,305 | |||||||||
| Rocky Mountain Bank | 1,769 | 1,631 | 1,732 | 1,521 | 1,229 | ||||||||||
| Minnesota Bank & Trust | 106 | 791 | 563 | 591 | 888 | ||||||||||
| (1) Formerly known as Centennial Bank and Trust. | |||||||||||||||
CONTACT:
Bryan R. McKeag
Executive Vice President
Chief Financial Officer
(563) 589-1994
bmckeag@htlf.com
