exhibit99042709.htm

On a tax-equivalent basis, interest income in the first quarter of 2009 totaled $50.8 million compared to $52.2 million in the first quarter of 2008, a decrease of $1.4 million or 3 percent. Nearly half of Heartland’s commercial and agricultural loan portfolios consist of floating rate loans that reprice immediately upon a change in the national prime interest rate, thus changes in the national prime rate impact interest income more quickly than if there were more fixed rate loans. The national prime interest rate was 3.25 percent for the first three months of 2009. During the first three months of 2008, the national prime interest rate decreased from 7.25 percent on January 1, 2008, to 5.25 percent at March 31, 2008. A large portion of Heartland’s floating rate loans that reprice immediately with a change in national prime have interest rate floors that are currently in effect. Additionally, Heartland has two $50.0 million derivative transactions on the loan portfolio that are at their floor interest rates. One of these derivative transactions matured on April 4, 2009.

Noninterest income was $12.8 million during the first quarter of 2009 compared to $8.5 million during the first quarter of 2008, an increase of $4.3 million or 51 percent. The categories experiencing the largest increases for the comparative quarters were loan servicing income, securities gains and gains on sale of loans. Loan servicing income increased $1.5 million or 115 percent due to an increase in the number of residential real estate loans that Heartland services, balances of which totaled $868.6 million at March 31, 2009, compared to $660.4 million at March 31, 2008. Securities gains totaled $3.0 million during the first quarter of 2009 compared to $362,000 during the first quarter of 2008 as securities designed to outperform in a declining rate environment were sold during the first quarter of 2009 and replaced with securities that are expected to outperform as rates rise. Gains on sale of loans totaled $1.8 million during the first quarter of 2009 compared to $504,000 during the first quarter of 2008. As long-term mortgage loan rates fell below 5.00 percent during the first quarter of 2009, refinancing activity significantly increased on 15- and 30-year, fixed-rate mortgage loans. Heartland normally elects to sell these types of loans into the secondary market and retains the servicing on these loans.

For the first quarter of 2009, noninterest expense totaled $28.3 million, an increase of $2.5 million or 10 percent from the $25.8 million recorded during the same quarter in 2008. The largest component of noninterest expense, salaries and employee benefits, increased $1.6 million or 11 percent during the first quarter of 2009 compared to the first quarter of 2008, primarily due to the opening of Minnesota Bank & Trust in April 2008 and additional staffing at Summit Bank & Trust to grow its customer base and at Heartland’s operations center to provide support services to the bank subsidiaries. Commission expense increased $410,000 or 65 percent during the first quarter of 2009 compared to the first quarter of 2008 as activity in residential mortgage loans increased. Total full-time equivalent employees were 1,049 at March 31, 2009, compared to 995 at March 31, 2008. The other noninterest expense category to experience a significant increase during the quarters under comparison was outside services, which increased $707,000 or 28 percent, primarily as a result of higher FDIC assessments.

Heartland’s effective tax rate was 31.71 percent for the first quarter of 2009 compared to 27.86 percent for the first quarter of 2008. Heartland’s effective tax rate during the first quarter of 2009 did not include any federal rehabilitation tax credits, whereas Heartland’s effective tax rate during the first quarter of 2008 included $208,000 in federal rehabilitation tax credits associated with Dubuque Bank and Trust Company’s ownership interests in limited liability companies that own certified historic structures. Heartland’s effective tax rate is also affected by the level of tax-exempt interest income which, as a percentage of pre-tax income, was 21.70 percent during the first quarter of 2009 compared to 20.17 percent during the first quarter of 2008. The tax-equivalent adjustment for this tax-exempt interest income was $1.0 million during the first quarter of 2009 compared to $943,000 during the same quarter in 2008.

Total deposits grew to $2.79 billion at March 31, 2009, an increase of $148.5 million or 22 percent annualized since year-end 2008. With the exception of First Community Bank and Wisconsin Community Bank, all Heartland banks experienced a significant increase in deposits. This growth was weighted more heavily in Heartland’s Midwestern markets, which were responsible for nearly 58 percent of the growth. Demand deposits increased $26.9 million or 28 percent annualized since year-end 2008. Savings deposit balances experienced an increase of $57.4 million or 20 percent annualized since year-end 2008 and time deposits, exclusive of brokered deposits, experienced an increase of $71.0 million or 26 percent annualized since year-end 2008. At March 31, 2009, brokered time deposits totaled $44.6 million or 2 percent of total deposits compared to $51.5 million or 2 percent of total deposits at year-end 2008.

“While the banking industry is experiencing annualized deposit growth near 12 percent, Heartland’s deposit increases demonstrate our ability to gain market share, as nonbrokered deposits grew at a 24 percent annualized rate,” Fuller added. “Across Heartland, we have focused on growth of non-maturity deposits and are pleased to see an annual increase of 22 percent in these deposits. Fueling this growth is a great menu of deposit products, along with an increased focus on commercial treasury management sales and services. We are thankful for a loyal customer base that has confidence in our strength.”

The allowance for loan and lease losses at March 31, 2009, was 1.58 percent of loans and leases and 55.52 percent of nonperforming loans, compared to 1.48 percent of loans and leases and 45.73 percent of nonperforming loans at December 31, 2008. The first quarter 2009 provision for loan losses was $6.7 million compared to $1.8 million for the first quarter 2008. Additions to the allowance for loan and lease losses during the first quarter of 2009 were driven by a variety of factors including deterioration of economic conditions, downgrades in internal risk ratings, reduction in appraised values and higher levels of charge-offs, primarily in Heartland’s Western markets of Arizona, Montana and Colorado.

Nonperforming loans were $67.1 million or 2.85 percent of total loans and leases at March 31, 2009, compared to $78.0 million or 3.24 percent of total loans and leases at December 31, 2008. Approximately 65 percent, or $43.3 million, of Heartland’s nonperforming loans are to 17 borrowers, with $10.2 million originated by Arizona Bank & Trust, $10.0 million originated by Rocky Mountain Bank, $8.3 million originated by Wisconsin Community Bank, $7.7 million originated by Summit Bank & Trust, $3.1 million originated by Riverside Community Bank, $2.5 million originated by Dubuque Bank and Trust Company and $1.5 million originated by First Community Bank. The portion of Heartland’s nonperforming loans covered by government guarantees was $3.8 million at March 31, 2009.

Net charge-offs during the first quarter 2009 were $5.0 million compared to $1.1 million during the first quarter 2008. A large portion of the net charge-offs was related to commercial real estate development loans and residential lot loans, primarily in the Phoenix, Arizona market. Previously, Heartland generally recognized the charge-off on a loan when the loan was resolved, sold or transferred to other real estate owned. However, in the third quarter of 2008, Heartland began to recognize charge-offs on loans it considered impaired by writing down the loan balance to an estimated net realizable value based on the anticipated disposition value.

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

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
	For the Quarter Ended March 31,
		2009			2008
Interest Income
Interest and fees on loans and leases	$	39,483		$	42,899
Interest on securities and other:
Taxable		8,421			6,615
Nontaxable		1,883			1,647
Interest on federal funds sold		1			131
Interest on deposits in other financial institutions		1			5
Total Interest Income		49,789			51,297
Interest Expense
Interest on deposits		14,122			17,096
Interest on short-term borrowings		212			2,186
Interest on other borrowings		4,378			4,277
Total Interest Expense		18,712			23,559
Net Interest Income		31,077			27,738
Provision for loan and lease losses		6,665			1,761
Net Interest Income After Provision for Loan and Lease Losses		24,412			25,977
Noninterest Income
Service charges and fees		2,887			2,615
Loan servicing income		2,786			1,296
Trust fees		1,697			2,021
Brokerage and insurance commissions		881			892
Securities gains, net		2,965			362
Loss on trading account securities		(286	)		(207	)
Impairment loss on securities		-			(86	)
Gains on sale of loans		1,808			504
Income on bank owned life insurance		130			463
Other noninterest income		(106	)		614
Total Noninterest Income		12,762			8,474
Noninterest Expense
Salaries and employee benefits		16,433			14,793
Occupancy		2,375			2,344
Furniture and equipment		1,647			1,768
Outside services		3,217			2,510
Advertising		583			795
Other intangibles amortization		235			236
Other noninterest expenses		3,796			3,318
Total Noninterest Expense		28,286			25,764
Income Before Income Taxes		8,888			8,687
Income taxes		2,819			2,420
Net Income	$	6,069		$	6,267
Net income attributable to noncontrolling interest, net of tax		59			-
Preferred dividends and discount		(1,336	)		-
Net Income Available to Common Stockholders	$	4,792		$	6,267

Earnings per common share-diluted	$	0.29		$	0.38
Weighted average shares outstanding-diluted		16,296,839			16,465,985

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
	For the Quarter Ended
	3/31/2009			12/31/2008			9/30/2008			6/30/2008			3/31/2008
Interest Income
Interest and fees on loans and leases	$	39,483		$	39,905		$	40,990		$	40,555		$	42,899
Interest on securities and other:
Taxable		8,421			8,503			8,228			7,885			6,615
Nontaxable		1,883			1,692			1,670			1,679			1,647
Interest on federal funds sold		1			32			85			51			131
Interest on deposits in other financial institutions		1			8			3			2			5
Total Interest Income		49,789			50,140			50,976			50,172			51,297
Interest Expense
Interest on deposits		14,122			15,729			15,622			15,657			17,096
Interest on short-term borrowings		212			522			776			1,087			2,186
Interest on other borrowings		4,378			4,662			4,692			4,593			4,277
Total Interest Expense		18,712			20,913			21,090			21,337			23,559
Net Interest Income		31,077			29,227			29,886			28,835			27,738
Provision for loan and lease losses		6,665			15,106			7,083			5,369			1,761
Net Interest Income After Provision for Loan and Lease Losses		24,412			14,121			22,803			23,466			25,977
Noninterest Income
Service charges and fees		2,887			3,034			3,125			2,880			2,615
Loan servicing income		2,786			1,015			1,094			1,195			1,296
Trust fees		1,697			1,747			2,070			2,068			2,021
Brokerage and insurance commissions		881			1,002			942			883			892
Securities gains, net		2,965			510			5			648			362
Loss on trading account securities		(286	)		(531	)		(33	)		(227	)		(207	)
Impairment loss on securities		-			(347	)		(4,688	)		(30	)		(86	)
Gains on sale of loans		1,808			331			295			480			504
Income (loss) on bank owned life insurance		130			(1,780	)		(247	)		380			463
Gain on sale of merchant bankcard processing services		-			-			5,200			-			-
Other noninterest income		(106	)		543			117			41			614
Total Noninterest Income		12,762			5,524			7,880			8,318			8,474
Noninterest Expense
Salaries and employee benefits		16,433			12,293			15,000			14,666			14,793
Occupancy		2,375			2,220			2,262			2,193			2,344
Furniture and equipment		1,647			1,767			1,662			1,771			1,768
Outside services		3,217			3,068			3,096			2,648			2,510
Advertising		583			909			1,012			1,046			795
Other intangibles amortization		235			235			236			236			236
Other noninterest expenses		3,796			3,666			3,469			3,020			3,318
Total Noninterest Expense		28,286			24,158			26,737			25,580			25,764
Income (Loss) Before Income Taxes		8,888			(4,513	)		3,946			6,204			8,687
Income taxes		2,819			(1,769	)		1,018			1,643			2,420
Net Income (Loss)	$	6,069		$	(2,744	)	$	2,928		$	4,561		$	6,267
Net income available to noncontrolling interest, net of tax		59			61			77			142			-
Preferred dividends and discount		(1,336	)		(178	)		-			-			-
Net Income (Loss) Available to Common Stockholders	$	4,792		$	(2,861	)	$	3,005		$	4,703		$	6,267

Earnings (loss) per common share-diluted	$	.29		$	(0.18	)	$	0.18		$	0.29		$	0.38
Weighted average shares outstanding-diluted		16,296,839			16,324,106			16,355,393			16,388,885			16,465,985

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
	As Of
	3/31/2009			12/31/2008			9/30/2008			6/30/2008			3/31/2008
Assets
Cash and cash equivalents	$	87,261		$	51,303		$	67,074		$	41,292		$	50,141
Securities		1,006,172			903,705			760,143			795,624			734,690
Loans held for sale		18,263			19,695			9,812			11,437			11,222
Loans and leases:
Held to maturity		2,356,391			2,405,001			2,364,259			2,295,406			2,271,663
Allowance for loan and lease losses		(37,277	)		(35,651	)		(34,845	)		(34,931	)		(33,695	)
Loans and leases, net		2,319,114			2,369,350			2,329,414			2,260,475			2,237,968
Premises, furniture and equipment, net		119,569			120,500			120,225			118,063			119,542
Goodwill		40,207			40,207			40,207			40,207			40,207
Other intangible assets, net		9,606			8,079			8,332			8,434			8,416
Cash surrender value on life insurance		54,581			54,431			55,684			56,430			56,018
Other assets		75,327			62,998			55,091			47,109			42,276
Total Assets	$	3,730,100		$	3,630,268		$	3,445,982		$	3,379,071		$	3,300,480

Liabilities and Equity
Liabilities
Deposits:
Demand	$	409,921		$	383,061		$	373,193		$	383,136		$	377,709
Savings		1,185,756			1,128,312			1,042,364			894,074			863,067
Brokered time deposits		44,631			51,474			81,895			79,515			89,439
Other time deposits		1,148,413			1,077,385			1,070,455			1,052,160			1,090,724
Total deposits		2,788,721			2,640,232			2,567,907			2,408,885			2,420,939
Short-term borrowings		117,766			210,184			176,543			263,137			226,106
Other borrowings		477,640			437,833			440,146			444,006			380,479
Accrued expenses and other liabilities		30,496			33,396			32,993			32,187			37,103
Total Liabilities		3,414,623			3,321,645			3,217,589			3,148,215			3,064,627

Equity
Preferred equity		76,279			75,578			-			-			-
Common equity		236,237			230,025			225,312			227,698			235,853
Total Heartland Stockholders’ Equity		312,516			305,603			225,312			227,698			235,853
Noncontrolling interest		2,961			3,020			3,081			3,158			-
Total Equity		315,477			308,623			228,393			230,856			235,853
Total Liabilities and Equity	$	3,730,100		$	3,630,268		$	3,445,982		$	3,379,071		$	3,300,480

Common Share Data
Book value per common share	$	14.50		$	14.13		$	13.86		$	13.99		$	14.46
FAS 115 effect on book value per common share	$	.10		$	(0.13	)	$	(0.28	)	$	(0.07	)	$	0.52
Common shares outstanding, net of treasury stock		16,294,828			16,274,490			16,252,891			16,270,872			16,312,384

Tangible Capital Ratio(1)		5.23	%		5.19	%		5.33	%		5.50	%		5.88	%

	For the Quarter Ended
	3/31/2009			12/31/2008			9/30/2008			6/30/2008			3/31/2008

Average Balances
Assets	$	3,659,204		$	3,492,105		$	3,399,199		$	3,354,880		$	3,269,534
Loans and leases, net of unearned		2,423,605			2,396,816			2,339,539			2,286,392			2,284,634
Deposits		2,674,320			2,587,372			2,499,988			2,396,963			2,338,634
Earning assets		3,309,556			3,177,472			3,100,208			3,057,505			2,974,215
Interest bearing liabilities		2,918,763			2,837,795			2,750,004			2,712,487			2,637,962
Total stockholders’ equity		313,968			233,824			227,111			234,005			235,144
Common stockholders’ equity		235,200			222,509			227,111			234,005			235,144
Tangible common stockholders’ equity		196,318			183,284			187,509			193,950			194,600

Earnings Performance Ratios
Annualized return on average assets		0.53	%		(0.33	)%		0.35	%		0.56	%		0.77	%
Annualized return on average common equity		8.26			(5.12	)		5.26			8.08			10.72
Annualized return on average common tangible equity		9.90			(6.21	)		6.38			9.75			12.95
Annualized net interest margin(1)		3.94			3.79			3.96			3.92			3.88
Efficiency ratio(2)		67.48			68.37			68.79			67.92			70.02

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
	As of and For			As of and For			As of and For			As of and For
	the Quarter			the Year			the Quarter			the Year
	Ended			Ended			Ended			Ended
	3/31/2009			12/31/2008			3/31/2008			12/31/2007
Loan and Lease Data
Commercial and commercial real estate	$	1,673,882		$	1,718,071		$	1,616,190		$	1,632,597
Residential mortgage		190,179			203,921			210,147			217,044
Agricultural and agricultural real estate		259,320			247,664			238,178			225,663
Consumer		232,507			234,061			202,348			199,518
Direct financing leases, net		4,989			5,829			8,386			9,158
Unearned discount and deferred loan fees		(4,486	)		(4,545	)		(3,586	)		(3,813	)
Total loans and leases	$	2,356,391		$	2,405,001		$	2,271,663		$	2,280,167

Asset Quality
Nonaccrual loans	$	67,140		$	76,953		$	38,748		$	30,694
Loans and leases past due ninety days or more as to interest or principal payments		-			1,005			378			1,134
Other real estate owned		29,317			11,750			2,714			2,195
Other repossessed assets		1,501			1,484			494			438
Total nonperforming assets	$	97,958		$	91,192		$	42,334		$	34,461

Allowance for Loan and Lease Losses
Balance, beginning of period	$	35,651		$	32,993		$	32,993		$	29,981
Provision for loan and lease losses		6,665			29,319			1,761			10,073
Loans charged off		(5,635	)		(27,747	)		(1,315	)		(8,564	)
Recoveries		596			1,086			256			1,641
Reductions related to discontinued operations		-			-			-			(138	)
Balance, end of period	$	37,277		$	35,651		$	33,695		$	32,993

Asset Quality Ratios
Ratio of nonperforming loans and leases to total loans and leases		2.85	%		3.24	%		1.72	%		1.40	%
Ratio of nonperforming assets to total assets		2.63			2.51			1.28			1.06
Ratio of net loan charge-offs to average loans and leases		0.21			1.15			0.05			0.30
Allowance for loan and lease losses as a percent of loans and leases		1.58			1.48			1.48			1.45
Allowance for loan and lease losses as a percent of nonperforming loans and leases		55.52			45.73			86.12			103.66

HEARTLAND FINANCIAL USA, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) DOLLARS IN THOUSANDS
		For the Quarter Ended
		3/31/2009							3/31/2008
		Average							Average
		Balance			Interest	Rate			Balance			Interest	Rate
Earning Assets
Securities:
Taxable	$	759,985		$	8,421	4.49	%	$	556,859		$	6,615	4.78	%
Nontaxable(1)		160,147			2,720	6.89			145,942			2,421	6.67
Total securities		920,132			11,141	4.91			702,801			9,036	5.17
Interest bearing deposits		634			1	0.64			432			5	4.66
Federal funds sold		785			1	0.52			19,006			131	2.77
Loans and leases:
Commercial and commercial real estate(1)		1,693,796			26,142	6.26			1,623,511			28,597	7.08
Residential mortgage		236,878			3,449	5.90			224,902			3,701	6.62
Agricultural and agricultural real estate(1)		256,059			4,092	6.48			228,964			4,324	7.60
Consumer		231,328			4,973	8.72			198,469			4,931	9.99
Direct financing leases, net		5,544			68	4.97			8,788			133	6.09
Fees on loans		-			966	-			-			1,382	-
Less: allowance for loan and lease losses		(35,600)			-	-			(32,658)			-	-
Net loans and leases		2,388,005			39,690	6.74			2,251,976			43,068	7.69
Total earning assets		3,309,556		$	50,833	6.23	%		2,974,215		$	52,240	7.06	%
Nonearning Assets		349,648							295,319
Total Assets	$	3,659,204						$	3,269,534
Interest Bearing Liabilities
Interest bearing deposits
Savings	$	1,116,314		$	4,524	1.64	%	$	827,988		$	4,035	1.96	%
Time, $100,000 and over		394,948			3,238	3.32			308,760			3,547	4.62
Other time deposits		769,443			6,360	3.35			845,308			9,514	4.53
Short-term borrowings		170,826			212	0.50			301,616			2,186	2.91
Other borrowings		467,232			4,378	3.80			354,290			4,277	4.86
Total interest bearing liabilities		2,918,763			18,712	2.60			2,637,962			23,559	3.59
Noninterest Bearing Liabilities
Noninterest bearing deposits		393,615							356,578
Accrued interest and other liabilities		32,858							39,850
Total noninterest bearing liabilities		426,473							396,428
Stockholders’ Equity		313,968							235,144
Total Liabilities and Stockholders’ Equity	$	3,659,204						$	3,269,534
Net interest income(1)				$	32,121						$	28,681
Net interest spread(1)						3.63	%						3.47	%
Net interest income to total earning assets(1)						3.94	%						3.88	%
Interest bearing liabilities to earning assets		88.19	%						88.69	%

(1) Tax equivalent basis is calculated using an effective tax rate of 35%.

HEARTLAND FINANCIAL USA, INC. SELECTED FINANCIAL DATA – SUBSIDIARY BANKS (Unaudited) DOLLARS IN THOUSANDS
	As of and For the Quarter Ended 3/31/2009			As of and For the Year Ended 12/31/2008			As of and For the Quarter Ended 3/31/2008			As of and For the Year Ended 12/31/2007
Total Assets
Dubuque Bank and Trust Company	$	1,107,204		$	1,041,247		$	973,201		$	976,489
New Mexico Bank & Trust		762,980			773,726			669,783			672,863
Rocky Mountain Bank		481,577			476,762			446,084			427,437
Wisconsin Community Bank		427,734			429,707			404,517			399,532
Riverside Community Bank		254,965			244,613			235,361			225,206
Galena State Bank & Trust Co.		228,711			222,886			220,519			215,698
Arizona Bank & Trust		227,840			219,830			215,506			222,576
First Community Bank		123,785			123,058			123,429			127,305
Summit Bank & Trust		78,892			77,638			49,855			46,668
Minnesota Bank & Trust		30,625			25,695			-			-
Total Deposits
Dubuque Bank and Trust Company	$	806,425		$	749,250		$	698,820		$	670,257
New Mexico Bank & Trust		535,753			507,561			473,823			459,530
Rocky Mountain Bank		375,708			370,630			337,577			305,933
Wisconsin Community Bank		336,670			338,025			312,389			321,647
Riverside Community Bank		209,176			197,785			191,131			187,052
Galena State Bank & Trust Co.		193,697			185,042			178,268			177,040
Arizona Bank & Trust		176,393			155,909			147,401			155,093
First Community Bank		100,441			102,515			100,647			103,602
Summit Bank & Trust		66,259			60,278			32,400			30,860
Minnesota Bank & Trust		15,598			10,459			-			-
Return on Average Assets
Dubuque Bank and Trust Company		1.43	%		1.38	%		1.65	%		1.34	%
New Mexico Bank & Trust		1.72			1.06			1.07			1.48
Rocky Mountain Bank		0.61			0.33			0.60			1.51
Wisconsin Community Bank		0.95			0.27			0.88			0.62
Riverside Community Bank		0.82			0.42			0.34			0.55
Galena State Bank & Trust Co.		1.64			1.10			1.60			0.92
Arizona Bank & Trust		(4.94	)		(1.75	)		(0.63	)		(0.08	)
First Community Bank		1.04			0.45			1.27			1.30
Summit Bank & Trust		(2.23	)		(4.57	)		(4.03	)		(2.43	)
Minnesota Bank & Trust		(4.32	)		(7.43	)		-			-
Net Interest Margin
Dubuque Bank and Trust Company		3.59	%		3.56	%		3.54	%		3.40	%
New Mexico Bank & Trust		4.70			4.57			4.61			4.80
Rocky Mountain Bank		4.17			4.25			4.42			4.76
Wisconsin Community Bank		3.65			3.61			3.66			3.45
Riverside Community Bank		2.98			3.21			3.17			3.39
Galena State Bank & Trust Co.		3.43			3.42			3.58			3.40
Arizona Bank & Trust		3.88			3.89			4.09			4.56
First Community Bank		3.53			3.44			3.72			3.80
Summit Bank & Trust		3.38			3.93			3.96			5.10
Minnesota Bank & Trust		3.13			2.60			-			-
Net Income (Loss)
Dubuque Bank and Trust Company	$	3,787		$	13,846		$	3,978		$	11,907
New Mexico Bank & Trust		3,257			7,456			1,790			8,727
Rocky Mountain Bank		723			1,508			643			6,622
Wisconsin Community Bank		1,011			1,073			874			2,355
Riverside Community Bank		501			1,017			193			1,055
Galena State Bank & Trust Co.		905			2,433			866			1,895
Arizona Bank & Trust		(2,695	)		(3,856	)		(340	)		(154	)
First Community Bank		316			548			394			1,476
Summit Bank & Trust		(432	)		(2,754	)		(475	)		(965	)
Minnesota Bank & Trust		(291	)		(1,401	)		-			-

HEARTLAND FINANCIAL USA, INC. SELECTED FINANCIAL DATA – SUBSIDIARY BANKS (Unaudited) DOLLARS IN THOUSANDS
	As of 3/31/2009			As of 12/31/2008			As of 3/31/2008			As of 12/31/2007
Total Portfolio Loans and Leases
Dubuque Bank and Trust Company	$	662,047		$	669,856		$	647,621		$	637,782
New Mexico Bank & Trust		480,147			494,877			444,744			455,383
Rocky Mountain Bank		312,335			326,086			314,005			316,776
Wisconsin Community Bank		295,852			291,164			287,232			285,010
Riverside Community Bank		161,304			165,347			153,113			146,925
Galena State Bank & Trust Co.		130,791			141,428			138,036			144,152
Arizona Bank & Trust		138,647			139,723			152,682			160,309
First Community Bank		74,120			79,261			77,669			84,475
Summit Bank & Trust		62,157			60,725			33,826			27,493
Minnesota Bank & Trust		14,796			13,134			-			-
Allowance For Loan and Lease Losses
Dubuque Bank and Trust Company	$	9,333		$	9,307		$	7,948		$	7,827
New Mexico Bank & Trust		6,607			6,847			6,377			6,079
Rocky Mountain Bank		4,938			4,678			4,319			4,061
Wisconsin Community Bank		4,345			4,297			4,266			4,520
Riverside Community Bank		2,215			2,293			2,026			1,885
Galena State Bank & Trust Co.		1,782			1,962			1,746			1,830
Arizona Bank & Trust		3,933			2,330			3,736			3,605
First Community Bank		1,023			1,110			1,162			1,179
Summit Bank & Trust		1,075			874			453			367
Minnesota Bank & Trust		185			164			-			-
Nonperforming Loans and Leases
Dubuque Bank and Trust Company	$	6,180		$	7,840		$	3,734		$	3,344
New Mexico Bank & Trust		10,094			11,426			3,635			1,130
Rocky Mountain Bank		12,854			17,254			3,253			2,099
Wisconsin Community Bank		13,075			10,746			12,471			12,152
Riverside Community Bank		6,105			6,410			2,777			2,671
Galena State Bank & Trust Co.		3,040			4,625			1,189			1,707
Arizona Bank & Trust		5,234			8,278			8,218			5,541
First Community Bank		4,291			5,102			1,919			1,312
Summit Bank & Trust		5,460			5,486			1,390			1,376
Minnesota Bank & Trust		-			-			-			-
Allowance As a Percent of Total Loans and Leases
Dubuque Bank and Trust Company		1.41	%		1.39	%		1.23	%		1.23	%
New Mexico Bank & Trust		1.38			1.38			1.43			1.33
Rocky Mountain Bank		1.58			1.43			1.38			1.28
Wisconsin Community Bank		1.47			1.48			1.49			1.59
Riverside Community Bank		1.37			1.39			1.32			1.28
Galena State Bank & Trust Co.		1.36			1.39			1.26			1.27
Arizona Bank & Trust		2.84			1.67			2.45			2.25
First Community Bank		1.38			1.40			1.50			1.40
Summit Bank & Trust		1.73			1.44			1.34			1.33
Minnesota Bank & Trust		1.25			1.25			-			-

		Quarter Ended March 31,
		2009			2008
Net income (in millions)	$	6.1		$	6.3
Net income available to common stockholders (in millions)		4.8			6.3
Diluted earnings per common share		0.29			0.38

Return on average assets		0.53	%		0.77	%
Return on average common equity		8.26			10.72
Net interest margin		3.94			3.88