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HEARTLAND FINANCIAL USA, INC. REPORTS THIRD QUARTER 2010 RESULTS

Third Quarter 2010 Highlights


▪	Net income of $6.9 million for the quarter


▪	Net interest margin of 4.18% for the quarter


▪	Net interest income increased $2.1 million or 6% over the third quarter of 2009


▪	Nonperforming assets not covered by loss share agreements were $117.8 million at quarter-end, down from $118.0 million at June 30, 2010

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Quarter Ended

Sept. 30,


		Nine Months Ended S ept. 30,
	2010			2009			2010			2009
Net income (in millions)	$	6.9		$	3.5		$	17.3		$	14.2
Net income available to common stockholders (in millions)	5.6			2.2			13.4			10.4
Diluted earnings per common share	0.34			0.13			0.81			0.64

Return on average assets	0.55		%	0.22		%	0.45		%	0.37		%
Return on average common equity	8.76			3.54			7.32			5.81
Net interest margin	4.18			4.06			4.14			3.98

“This quarter's results reflect the focus we've had on growing net interest margin and curbing the increase in nonperforming assets. Net income of $6.9 million makes this Heartland's best quarter in three years.”

Lynn B. Fuller, chairman, president and chief executive officer, Heartland Financial USA, Inc.

Dubuque, Iowa, Monday, October 25, 2010-Heartland Financial USA, Inc. (NASDAQ: HTLF) today r eported net income of $6.9 million for the quarter ended September 30, 2010, compared to net income of $3.5 million for the third quarter of 2009. Net income available to common stockholders was $5.6 million, or $0.34 per diluted common share, for the quarter ended September 30, 2010, compared to $2.2 million, or $0.13 per diluted common share, for the third quarter of 2009. Return on average common equity was 8.76 percent and return on average assets was 0.55 percent for the third quarter of 2010, compared to 3.54 percent and 0.22 percent, respectively, for the same quarter in 2009.

Commenting on Heartland's third quarter results, Lynn B. Fuller, chairman, president and chief executive officer said, “This quarter's results reflect the focus we've had on growing net in terest margin and curbing the increase in nonperforming assets. Net income of $6.9 million makes this Heartland's best quarter in three years.”

Net income for the third quarter of 2010 compared to the third quarter of 2009 was positively affected by increases in net interest income, securities gains and gains on sale of loans, along with a reduction in the provision for loan losses. The effect of these improvements was mitigated by a valuation adjustment on mortgage servicing rights, a goodwill impairment charge and additional writedowns on repossessed assets that were recorded during the third quarter of 2010.

For the first nine months of 2010, net income was $17.3 million, compared to $14.2 million recorded during the first nine months of 2009. Net income available to common stockholders was $13.4 million, or $0.81 per diluted common share, for the nine months ended September 30, 2010, compared to $10.4 million, or $0.64 per diluted common share, earned during the first nine months of 2009. Return on average common equity was 7.32 percent and return on average assets was 0.45 percent for the first nine months of 2010, compared to 5.81 percent and 0.37 percent, respectively, for the same period in 2009.

Growth in net interest income during the first nine months of 2010 compared to the first nine months of 2009, along with reduced provision for loan losses and increases in service charges and trust fees, helped to offset the goodwill impairment charge and decreases in the income associated with residential mortgage loan activity and gains on the sales of securities.

Net Interest Margin Remains Above 4.00 Percent; Net Interest Income Grows

Net interest margin, expressed as a percentage of average earning assets, was 4.18 percent during the third quarter of 2010 compared to 4.06 percent for the third quarter of 2009. For the nin e-month periods ended September 30, net interest margin was 4.14 percent during 2010 and 3.98 percent during 2009.

Fuller said, “As a result of further declines in interest rates and considerable growth in demand deposits, net interest margin improved beyond our expectations. With our margin now at 4.18 percent, we are very gratified that the pricing discipline we've maintained is being rewarded. Remarkably, margin has exceeded four percent for five consecutive quarters.”

Net interest income on a tax-equivalent basis totaled $38.0 million during the third quarter of 2010, an increase of $2.2 million or 6 percent from the $35.8 million recorded during the third quarter of 2009. For the first nine months of 2010, net interest income on a tax-equivalent basis

was $110.9 million, an increase of $9.5 million or 9 percent from the $101.4 million recorded during the first nine months of 2009. These increases reflect Heartland's success in optimizing the composition of its interest bearing liabilities by de-emphasizing higher cost time deposits, which decreased to 37 percent of total average interest bearing deposits during the third quarter of 2010 from 46 percent during the third quarter of 2009. During the first nine months of 2010, time deposits were 38 percent of total average interest bearing deposits compared to 48 percent during the first nine months of 2009.

On a tax-equivalent basis, interest income in the third quarter of 2010 was $51.5 million compared to $53.0 million in the third quarter of 2009, a decrease of $1.5 million or 3 percent. For the first nine months of 2010, interest income on a tax-equivalent basis was $153.8 million compared to $155.4 million during the same period in 2009, a decrease of $1.6 million or 1 percent. The $106.3 million or 3 percent growth in average earning assets during the third quarter of 2010 and the $172.9 million or 5 percent growth in average earning ass ets during the first nine months of 2010 compared to the same periods in 2009 was offset by the impact of a decrease in the average interest rate earned on these assets. The composition of average earning assets continued to change as the percentage of loans, which are typically the highest yielding asset, to total average earning assets was 66 percent during the first nine months of 2010 compared to 70 percent during the first nine months of 2009.

Interest expense for the third quarter of 2010 was $13.6 million, a decrease of $3.7 million or 22 percent from $17.3 million in the third quarter of 2009. On a nine-month comparative basis, interest expense decreased $11.1 million or 21 percent from $54.1 million during 2009 to $43.0 million during 2010. Despite an increase in a verage interest bearing liabilities of $43.2 million or 1 percent for the quarter ended September 30, 2010, as compared to the same quarter in 2009, the average interest rates paid on Heartland's deposits and borrowings declined 51 basis points to 1.74 percent in 2010 from 2.25 percent in 2009. For the nine-month comparative period, average interest bearing liabilities increased $156.2 million or 5 percent while the average interest rate paid on these liabilities was 1.83 percent in 2010 compared to 2.43 percent in 2009, a 60 basis point decrease.

Noninterest Income Increases; Noninterest Expense Increases

Noninterest income was $12.6 million during the third quarter of 2010 compared to $11.9 million during the third quarter of 2009, an increase of $701,000 or 6 percent. Contributing to this increase was growth of $377,000 or 11 percent in service charges and fees, $318,000 or 16 percent in trust fees, $867,000 or 67 percent in securities gains and $1.5 million or 173 percent in gains on sale of loans. These improvements were mitigated by a $1.2 million valuation adjustment on mortgage servicing rights recorded during the third quarter of 2010 and a $998,000 gain on acquisition recorded during the third quarter of 2009.

For the first nine months of 2010, noninterest income was $34.0 million comp ared to $39.3 million during the first nine months of 2009, a decrease of $5.3 million or 13 percent. This decrease was primarily due to reductions of $2.9 million in loan servicing income, $1.8 million in securities gains and $641,000 in gains on sale of loans. A portion of the decreases in these noninterest income categories was offset by increases in service charges and fees, which grew by $1.1 million or 12 percent, and trust fees, which grew by $1.2 million or 21 percent during the first nine months of the year. Also negatively affecting noninterest income during the nine-month period ended on September 30, was the $1.2 million valuation adjustment on mortgage

servicing rights recorded during the third quarter of 2010 and the $998,000 gain on acquisition recorded during the third quarter of 2009. An increase in pre-payment speeds on Heartland's mortgage loan servicing portfolio during the third quarter of 2010 resulted in the valuation adjustment.

Loan servicing income increased $106,000 or 6 percent for the quarter and decreased $2.9 million or 37 percent for the nine-month periods under comparison. Included in loan servicing income is mortgage servicing rights income, which was $1.8 million during the third quarter of 2010 compared to $1.1 million during the third quarter of 2009, and amortization of mortgage servicing rights, which was $1.3 million during the thi rd quarter of 2010 compared to $576,000 during the third quarter of 2009. For the first nine months of 2010, mortgage servicing rights income was $3.4 million and the amortization of mortgage servicing rights was $2.6 million compared to $7.5 million and $3.0 million, respectively, during the first nine months of 2009. These components of loan servicing income increased during the third quarter of 2010 compared to the third quarter of 2009 as long-term mortgage loan rates fell to all-time lows during the third quarter of 2010 and resulted in increased residential mortgage loan refinancing activity. For the nine-month period ended September 30, these components of loan servicing income decreased during 2010 when compared to 2009 as the volume of mortgage loans originated and sold into the secondary market was at more normal levels during the first two quarters of 2010 instead of the abnormally high levels created by a low interest rate environment in the first two quarters of 2009. Also included in loan servi cing income are the fees collected for the servicing of mortgage loans for others, which was $778,000 during the third quarter of 2010 compared to $646,000 during the third quarter of 2009. For the first nine months of 2010, the fees collected for the servicing of mortgage loans for others was $2.2 million compared to $1.7 million during the same period in 2009. The portfolio of mortgage loans serviced for others by Heartland totaled $1.29 billion at September 30, 2010, compared to $1.08 billion at September 30, 2009.

Fuller stated, “Noninterest income increased nicely over recent quarters primarily due to another wave of residential mortgage refinancing activity and the opportunity to realize securities gains. Though service fee income was up for the quarter, we are co ncerned about the impact that recent and proposed regulatory changes may have on this line item in the future.”

For the third quarter of 2010, noninterest expense totaled $33.4 million, an increase of $3.1 million or 10 percent from the same period in 2009. This increase was primarily attributable to a goodwill impairment charge of $1.6 million recorded at Rocky Mountain Bank. This amount represents the correction of a calculation error discovered during the third quarter of 2010 related to the impairment calculation performed in the fourth quarter of 2009. After consideration of both quantitative and qualitative factors, management determined the amount was not material to the financial statements for 2009 and thus recorded such amount in the third quarter of 2010. Also contributing to the growth in noninterest expense during the third quarter of 2010 over 2009 was an $841,000 or 6 percent increase in salaries and employee benefits and a $539,000 increase in net losses on repossessed assets, which totaled $4.2 million during the third quarter of 2010 compared to $3.7 million during the third quarter of 2009.

For the nine-month period ended September 30, 2010, noninterest expense increased $2.8 million or 3 percent over the same period in 2009. In addition to the $1.6 million goodwill impairment charge recorded during the third quarter of 2010, the other primary contributor to this increase was $1.1 million of additional net losses on repossessed assets.

Heartland's effective tax rate was 32.65 percent for the first nine months of 2010 compared to 27.61 percent for the first nine months of 2009. Excluding the non-deductible goodwill impairment charge, Heartland's effective tax rate was 30.69 percent for the first nine months of 2010. Heartland's effective tax rate is affected by the level of tax-exempt interest income which, as a percentage of pre-tax income, was 26.44 percent during the first nine months of 2010 compared to 31.38 percent during the first nine months of 2009. The tax-equivalent adjustment for this tax-exempt interest income was $3.7 million during the first nine months of 2010 compared to $3.3 million during the same nine months in 2009.

Loan Demand Remains Soft; Growth in Demand Deposits

At September 30, 2010, total assets had experienced a slight increase of $50.2 million or less than 2 percent annualized since year-end 2009. Securities represented 30 percent of total assets at September 30, 2010, compared to 29 percent of total assets at December 31, 2009.

Total loans and leases, exclusive of those covered by the FDIC loss share agreements, were $2.36 billion at September 30, 2010, compared to $2.33 billion at year-end 2009, an increase of $30.4 million or 2 percent annualized. Total loans and leases decreased $24.2 million during the third quarter of 2010 compared to increases of $16.5 million during the second quarter of 2010 and $38.1 million during the first quarter of 2010. The loan category experiencing the majority of the growth during the first nine months of 2010 was commercial and commercial real estate loans, which totaled $1.71 billion at September 30, 2010, an increase of $44.5 million or 4 percent annualized since year-end 2009. This growth occurred at Dubuque Bank and Trust Company and Wisconsin Community Bank.

Total deposits were $3.07 billion at September 30, 2010, compared to $3.05 billion at year-end 2009, an increase of $23.3 million or 1 percent annualized. Total deposits increased $57.5 million during the third quarter of 2010 compared to a decrease of $21.2 million during the second quarter of 2010 and a decrease of $13.0 million during the first quarter of 2010. The composition of Heartland's deposits continued to improve during the first nine months of 2010, as demand deposits increased $121.3 million or 35 percent annualized. This growth was distributed throughout the first nine months of 2010 at $44.5 million during the third quarter, $47.6 million during the second quarter and $29.2 million during the first quarter. Savings deposits grew $18.5 million or 2 percent annualized since year-end 2009. For the year 2010, savings de posits increased $20.3 million during the third quarter, decreased $19.3 million during the second quarter and increased $17.5 million during the first quarter. Conversely, time deposits, exclusive of brokered deposits, experienced a decrease of $112.1 million or 15 percent annualized since year-end 2009. This decrease was distributed throughout 2010 at $7.3 million during the third quarter, $49.6 million during the second quarter and $55.2 million during the first quarter. At September 30, 2010, brokered time deposits totaled $37.3 million or 1 percent of total deposits compared to $41.8 million or 1 percent of total deposits at year-end 2009.

“We continue to see exceptional growth in demand deposits and steady growth in savings," Fuller added. "Now, over 70 percent of total deposits are comprised of demand and savings. Overall, these deposits grew by 17 percent over last year, a reflection of the de-leveraging and increased cash reserve building that continues to take place by our commercial and retail clients.”

Nonperforming Assets Stabilize; Allowance for Loan Losses Decreases

The allowance for loan and lease losses at September 30, 2010, was 1.89 percent of loans and leases and 52.51 percent of nonperforming loans compared to 1.80 percent of loans and leases and 53.56 percent of nonperforming loans at December 31, 2009, and 1.78 percent of loans and leases and 50.31 percent of nonperforming loans at September 30, 2009. The provision for loan losses was $4.8 million for the third quarter of 2010 compared to $11.9 million for the third quarter of 2009. The reduced provision for loan losses during the third quarter of 2010 was primarily the result of additional collateral being provided by the borrowers on two large loan relationships that have been considered impaired. For the first nine months of 2010, the provision for loan losses was $23.6 million compared to $28.6 million for the first nine months of 2009. Additions to the allowance for loan and lease losses during the first two quarters of 201 0 were driven by a variety of factors including the continuation of depressed economic conditions, primarily in Heartland's Western markets of Arizona and Montana, that have resulted in increased delinquencies, reductions in the appraised values of collateral and downgrades in internal risk ratings of loans, including particularly the loans in those geographies.

Nonperforming loans, exclusive of those covered under the loss sharing agreements, were $85.2 million or 3.61 percent of total loans and leases at September 30, 2010, compared to $78.1 million or 3.35 percent of total loans and leases at December 31, 2009, and $84.0 million or 3.55 percent of total loans and leases at September 30, 2009. Approximately 65 percent, or $55.2 million, of Heartland's nonperforming loans are to 23 borrowers, with $26.9 million originated by Rocky Mountain Bank, $11.3 million originated by Summit Bank & Trust, $6.7 million originated by Wisconsin Community Bank, $5.1 million originated by Arizona Bank & Trust, $3.6 million originated by New Mexico Bank & Trust and $1.6 million originated by Riverside Community Bank. The portion of Heartland's nonperforming loans covered by government guarantees was $3.3 million at September 30, 2010. The industry breakdown for these nonperforming loans as identified using the North American Industry Classification System (NAICS) was $15.2 million lot and land development, $14.2 million lessors of real estate, $7.6 million other activities related to real estate and $6.9 million construction and development. The remaining $11.3 million was distributed among 6 other industries.

Other real estate owned, exclusive of assets covered under the loss sharing agreements, was $32.1 million at September 30, 2010, compared to $30.2 million at December 31, 2009, and $32.6 million at September 30, 2009. Liquidation strategies have been identified for all the assets held in other real estate owned. Management continues with its plans to market these properties through an orderly liquidation process instead of a quick liquidation process that would likely result in discounts greater than the projected carrying costs. Commercial and agricultural real estate comprises $30.5 million or 94.2 percent of Heartland's total other real estate owned.

Net charge-offs on loans not covered by loss share agreeme nts during the third quarter of 2010 were $8.4 million compared to $6.9 million during the third quarter of 2009. Net charge-offs on loans originated by Arizona Bank & Trust represented $4.5 million or 54 percent of the total net charge-offs during the third of 2010. For the nine-month periods ended September 30, net charge-offs not covered by loss share agreements were $20.8 million in 2010 and $22.0 million in 2009. A large portion of the net charge-offs in both years was related to commercial real estate development loans and residential lot loans.

“We are encouraged that nonperforming assets have remained level with the previous quarter. We have increased the resources dedicated to resolving these special assets and stepped up efforts to market repossessed properties. The reduction and resolution of nonperforming assets continues as our highest priority. Although there can be no assurances, we are cautiously optimistic that the worst is behind us,” Fuller said.

Conference Call Details

Heart land will host a conference call for investors at 5:00 p.m. EDT today. To participate, dial 877-941-8609 at least five minutes before start time, or log onto www.htlf.com. If you are unable to participate on the call, a replay will be available until October 24, 2011, by dialing 800-406-7325, pass code 4371599, or by logging onto www.htlf.com.

About Heartland Financial USA, Inc.

Heartland Financial USA, Inc. is a $4.0 billion diversified financial services company providing banking, mortgage, wealth management, investment, insurance and consumer finance services to individuals and businesses. Heartland currently has 61 banking locations in 42 communities in Iowa, Illinois, Wisconsin, New Mexico, Arizona, Montana, Colorado and Minnesota. Additional information about Heartland Financial USA, Inc. is available at www.htlf.com.

Safe Harbor Statement

This release, and future oral and written statements of Heartland and its management, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Heartland's financial condition, results of operations, plans, objectives, future performance and business. Although these forward-looking statements are based upon the beliefs, expectations and assumptions of Heartland's management, there are a number of factors, many of which are beyond the ability of management to control or predict, that could cause actual results to differ materially from those in its forward-looking statements. These factors, which are detailed in the risk factors included in Heartland's Annual Report on Form 10-K filed with the Securities and Exchange Commission, include, among others: (i) the strength of the local and national economy; (ii) the economic impact of past and any future terrorist threats and attacks and any acts of war, (iii) changes in state and federal laws, regulations and governmental policies concerning the Company's general business; (iv) changes in interest rates and prepayment rates of the Company's assets; (v) increased competition in the financial services sector and the inability to attract new customers; (vi) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (vii) the 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 updat e any statement in light of new information or future events.

-FINANCIAL TABLES FOLLOW-

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HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
	For the Qtr. Ended Sept. 30,							For the Nine Mos. Ended Sept. 30,
	2010			2009				2010				2009
Interest Income
Interest and fees on loans and leases	$	38,756		$	38,790			$	114,354			$	116,696
Interest on securities and other:
Taxable	8,225			10,809				26,618				29,269
Nontaxable	3,282			2,231				9,178				6,139
Interest on federal funds sold	—			—				1				1
Interest on deposits in other financial institutions	1			17				13				18
Total Interest Income	50,264			51,847				150,164				152,123
Interest Expense
Interest on deposits	9,033			13,046				29,748				40,744
Interest on short-term borrowings	305			154			830				539
Interest on other borrowings	4,213			4,065				12,380				12,803		< div style="text-align:left;">
Total Interest Expense	13,551			17,265				42,958				54,086
Net Interest Income	36,713			34,582				107,206				98,037
Provision for loan and lease losses	4,799			11,896				23,648				28,602
Net Interest Income After Provision for Loan and Lease Losses	31,914			22,686				83,558				69,435
Noninterest Income
Service charges and fees	3,665			3,288				10,363				9,284
Loan servicing income	1,862			1,756				4,909				7,853
Valuation adjustment on mortgage servicing rights	(1,239		)	—				(1,239		)		—
Trust fees	2,267			1,949				6,778				5,617
Brokerage and insurance commissions	739			824				2,236				2,420
Securities gains, net	2,158			1,291				4,664				6,462
Gain (loss) on trading account securities	18			210				(198		)		272
Gains on sale of loans	2,394			877		< /td>		4,275				4,916
Income on bank owned life insurance	396			297				1,003				640
Gain on acquisition	—			998				—				998
Other noninterest income	349			418				1,245				872
Total Noninterest Income	12,609			11,908				34,036				39,334
Noninterest Expense
Salaries and employee benefits	15,502			14,661				46,499				46,046
Occupancy	2,287			2,221				6,782				6,772
Furniture and equipment	1,515			1,594				4,561				4,936
Professional fees	2,621			2,706				7,381				7,027
FDIC insurance assessments	1,331			1,393				4,135				5,258
Advertising	906			740				2,772				2,272
Intangible assets amortization	149			199				445				668
Goodwill impairment charge	1,639			—				1,639				—
Net loss on repossessed assets	4,219			3,680				7,919				6,832
Other noninterest expenses	3,277			3,129				9,789				9,275
Total Noninterest Expense	33,446			30,323				91,922				89,086
Income Before Income Taxes	11,077			4,271				25,672				19,683
Income taxes	4,187			< font style="font-family:inherit;font-size:9pt;">803				8,382				5,434
Net Income	6,890			3,468				17,290				14,249
Net income attributable to noncontrolling interest, net of tax	30			44				80				147
Net Income Attributable to Heartland	6,920			3,512				17,370				14,396
Preferred dividends and discount	(1,336		)	(1,336		)		(4,008		)		(4,008		)
Net Income Available to Common Stockholders	$	5,584		$	2,176			$	13,362			$	10,388
Earnings per common share-diluted	$	0.34		$	0.13			$	0.81			$	0.64
Weighted average shares outstanding-diluted	16,465,650			16,340,092				16,453,670		&n bsp;		16,320,205

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HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
	For the Quarter Ended
	9/30/2010			6/30/2010			3/31/2010				12/31/2009				9/30/2009
Interest Income
Interest and fees on loans and leas es	$	38,756		$	38,270			$	37,328			$	38,191			$	38,790
Interest on securities and other:
Taxable	8,225			8,938				9,455				10,513				10,809
Nontaxable	3,282			3,047				2,849				2,456				2,231
Interest on federal funds sold	—			1				—				1
Interest on deposits in other financial institutions	1		< /div>	7				5			9				17
Total Interest Income	50,264			50,263				49,637				51,170				51, 847
Interest Expense
Interest on deposits	9,033			9,955				10,760				12,000				13,046
Interest on short-term borrowings	305			291				234				194				154
Interest on other borrowings	4,213			4,208				3,959				4,250				4,065
Total Interest Expense	13,551			14,454				14,953				16,444				17,265
Net Interest Income	36,713			35,809				34,684				34,726				34,582
Provision for loan and lease losses	4,799			9,955				8,894				10,775				11,896
Net Interest Income After Provision for Loan and Lease Losses	31,914			25,854				25,790				23,951				22,686
Noninterest Income
Service charges and fees	3,665			3,494				3,204				3,257			3,288
Loan servicing income	1,862			1,620				1,427				1,813				1,756
Valuation adjustment on mortgage servicing rights	(1,239		)	—				—				—				—
Trust fees	2,267			2,330			2,181				2,156				1,949
Brokerage and insurance commissions	739			785				712				697				824
Securities gains, net	2,158			1,050				1,456				2,186				1,291
Gain (loss) on trading account securities	18			(264		)		48				(61		)		210
Impairment loss on securities	—			—				—				(40		)		—
Gains on sale of loans	2,394			1,083				798				1,168				877
Income on bank owned life insurance	396			293				314				362				297
Gain on acquisition	—			—				—			298				998
Other noninterest income	349			443				453				1,534				418
Total Noninterest Income	12,609			10,834				10,593				13,370				11,908
Noninterest Expense
Salaries and employee benefits	15,502			15,574				15,423				14,419				14,661
Occupancy	2,287			2,201				2,294				2,220				2,221
Furnitu re and equipment	1,515			1,599				1,447				1,638				1,594
Professional fees	2,621			2,549				2,211				2,100				2,706
FDIC insurance assessments	1,331			1,384				1,420			&n bsp;	1,320				1,393
Advertising	906			1,052				814				1,065				740
Goodwill impairment charge	1,639			—				—				12,659				—
Intangible assets amortization	149			145				151				198				199
Net loss on repossessed assets	4,219			1,636				2,064				4,015				3,680
Other noninterest expenses	3,277			3,435				3,077				3,800				3,129
Total Noninterest Expense	33,446			29,575				28,901				43,434				30,323
Income (Loss) Before Income Taxes	11,077			7,113				7,482				(6,113	)		4,271
Income taxes	4,187			2,035				2,160			1,762				803
Net Income (Loss)	6,890			5,078				5,322				(7,875		)		3,468
Net income available to noncontrolling interest, net of tax	30			25				25				41				44
Net Income (Loss) Attributable to Heartland	6,920			5,103				5,347				(7,834		)		3,512
Preferred dividends and discount	(1,336		< font style="font-family:inherit;font-size:9pt;">)	(1,336		)		(1,336		)		(1,336		)		(1,336		)
Net Income (Loss) Available to Common Stockholders	$	5,584		$	3,767			$	4,011			$	(9,170	)		$	2,176
Earnings (loss) per common share-diluted	$	0.34		$	0.23			$	0.24			$	(0.56	)		$	0.13
Weighted average shares outstanding-diluted	16,465,650			16,459,978				16,435,844				16,345,095				16,340,092

< td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;">


HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
	As Of
	9/30/2010				6/30/2010				3/31/2010				12/31/2009				9/30/2009
Assets
Cash and cash equivalents	$	141,702			$	75,771			$	78,010			$	182,410			$	82,508
Securities	1,211,297				1,213,875				1,234,339				1,175,217				1,105,744
Loans held for sale	41,047				25,750				16,002				17,310				19,923
Loans and leases:
Held to maturity	2,361,567				2,385,772				2,369,233				2,331,142				2,367,871
Loans covered by loss share agreements	23,557				25,420				27,968			< /div>	31,860				36,175
Allowance for loan and lease losses	(44,732		)		(48,314		)		(46,350		)		(41,848		)		(42,260		)
Loans and lease s, net	2,340,392				2,362,878				2,350,851				2,321,154				2,361,786
Premises, furniture and equipment, net	121,940			122,066				121,033				118,835				117,140
Goodwill	25,909				27,548				27,548				27,548				40,207
Other intangible assets, net	11,510				12,426				12,320				12,380			12,101
Cash surrender value on life insurance	62,038				62,113				61,525				55,516				55,141
Other real estate, net	32,408				32,882				28,652				30,568				33,342
FDIC indemnification asset	1,939				1,952				2,357				5,532				4,393
Other assets	73,002				< div style="text-align:right;font-size:9pt;">71,168				65,604				66,521				47,328
Total Assets	$	4,063,184			$	4,008,429			$	3,998,241			$	4,012,991			$	3,879,613
Liabilities and Equity
Liabilities
Deposits:
Demand	$	581,957			$	537,468			$	489,807			$	460,645	& nbsp;		$	451,645
Savings	1,572,891				1,552,546				1,571,881				1,554,358				1,386,059
Brokered time deposits	37,285				37,285				37,285				41,791				43,473
Other time deposits	881,510				888,847				938,438				993,595				1,063,237
Total deposits	3,073,643				3,016,146				3,037,411				3,050,389				2,944,414
Short-term borrowings	196,533				200,515				190,732				162,349				111,346
Other borrowings	413,448				425,994				426,039				451,429				457,444
Accrued expenses and other liabilities	43,234				38,273				28,226				33,767				38,044
Total Liabilities	3,726,858				3,680,928				3,682,408				3,697,934				3,551,248
Equity
Preferred equity	78,168				77,853				77,539				77,224				76,909
Common equity	255,430				246,922				235,543				235,057				248,583
Tota l Heartland Stockholders' Equity	333,598				324,775			313,082				312,281				325,492
Noncontrolling interest	2,728				2,726				2,751				2,776				2,873
Total Equity	336,326				327,501				315,833				315,057				328,365
Total Liabilities and Equity	$	4,063,184			$	4,008,429			$	3,998,241			$	4,012,991			$	3,879,613
Common Share Data
Book value per common share	$	15.58			$	15.08			$	14.4			$	14.38			$	15.23
FAS 115 effect on book value per common share	$	1.25			$	0.93			$	0.28			$	0.38			$	0.62
Common shares out standing, net of treasury stock	16,392,091				16,375,460				16,357,874				16,346,362				16,321,953
Tangible Capital Ratio⁽¹⁾	5.63		%		5.45		%		5.17		%		5.14		%		< font style="font-family:inherit;font-size:9pt;">5.35		%
⁽¹⁾Total common stockholders' equity less goodwill and intangible assets (excluding mortgage servicing rights) divided by total assets less intangible assets (excluding mortgage servicing rights).

0.37


HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
	For the Quarter Ended						For the Nine Months Ended
	9/30/2010			9/30/2009			9/30/2010			9/30/2009
Average Balances
Assets	$	4,012,107		$	3,853,658		$	4,010,084		$	3,758,622
Loans and leases, net of unearned	2,427,141			2,430,161			2,416,330			2,412,778
Deposits	3,018,928			2,912,325			3,028,173			2,792,322
Earning assets	3,602,953			3,496,607			3,581,675			3,408,798
Interest bearing liabilities	3,084,742			3,041,502			3,137,922			2,981,723
Common stockholders' equity	252,781			243,542			244,208			239,206
Total stockholders' equity	333,346			323,040			324,494			318,361
Tangible common stockholders' equity	222,771			200,370			214,035			195,806
Earnings Performance Ratios
Annualized return on average assets	0.55		%	0.22		%	0.45		%	%
Annualized return on average common equity	8.76		%	3.54		%	7.32		%	5.81		%
Annualized return on average common tangible equity	9.94		%	4.31		%	8.35		%	7.09		%
An nualized net interest margin⁽¹⁾	4.18		%	4.06		%	4.14		% < /td>	3.98		%
Efficiency ratio⁽²⁾	69.05		%	65.55		%	65.54		%	66.37		%
Annualized return on average assets excluding goodwill impairment	0.71		%	0.22		%	0.50		%	0.37		%
Annualized return on average common equity excluding goodwill impairment	11.34		%	3.54		%	8.21		%	5.81		%
Annualized return on average comm on tangible equity excluding goodwill impairment	12.86		%	4.31		%	9.37		%	7.09		%
Efficiency ratio excluding goodwill impairment⁽²⁾	65.67		%	65.55		%	64.38		%	66.37		%
⁽¹⁾Tax equivalent basis is calculated using an effective tax rate of 35% ⁽²⁾ Noninterest expense divided by the sum of net interest income and noninterest income less net security gains

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Common stockholders' equity

< td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;">

11.34


HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
	For the Quarter Ended
	9/30/2010				6/30/2010				3/31/2010				12/31/2009				9/30/2009
Average Balances
Assets	$	4,012,107			$	4,033,350			$	3,984,794			$	3,975,107			$	3,853,658
Loans and leases, net of unearned	2,427,141				2,437,357				2,384,490				2,410,459				2,430,161
Deposits	3,018,928				3,040,763				3,024,827				3,013,644				2,912,325
Earning assets	3,602,953				3,632,056				3,510,015				3,525,624				3,496,607
Interest bearing liabilities	3,084,742				3,165,862				3,163,161				3,127,792				3,041,502
252,781				241,816				238,028				246,505				243,542
Total stockholders' equity	333,346				322,110				318,027				326,254				323,040
Tangible common stockholders' equity	222,771				211,640				207,695				203,573				200,370
Earnings Performance Ratios
Annualized return on average assets	0.55		%		0.37		%		0.41		%		(0.92		)%		0.22		%
Annualized return on average common equity	8.76		%		6.25		%		6.83		%		(14.76		)%		3.54		%
Annualized return on average common tangible equity	9.94		%	< /td>	7.14		%		7.83		%		(17.87		)%		4.31		%
Annualized net interest margin⁽¹⁾	4.18		%		4.09		%		4.14		%		4.04		%		4.06		%
Efficiency ratio⁽²⁾	69.05		%		63.14		%		64.27		%		92.19		%		65.55		%
Annualized return on average assets excluding goodwill impairment	0.71		%		0.37		%		0.41		%		0.35		%		0.22		%
Annualized return on average common equity excluding goodwill impairment	%		6.25		%		6.83		%		5.62		%		3.54		%
Annualized return on average common tangible equity excluding goodwill impairment	12.86		%		7.14		%		7.83		%		6.80		%		4.31		%
Efficiency ratio excluding goodwill impairment⁽²⁾	65.67		%		63.14		%		64.27		%		65.32		%		65.55		%
⁽¹⁾Tax equivalent basis is calculated using an effective tax rate of 35% ⁽²⁾Noninterest expense divided by the sum of net interest income and noninterest income less net security gains

)

< /tr>


HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
	As of and For the Quarter Ended 9/30/2010			As of and For the Quarter Ended 6/30/2010				As of and For the Quarter Ended 3/31/2010				As of and For the Quarter Ended 12/31/2009				As of and For the Quarter Ended 9/30/2009
Loan and Lease Data
Loans held to maturity:								& nbsp;
Commercial and commercial real estate	$	1,714,592		$	1,740,856			$	1,710,669			$	1,670,108			$	1,694,589
Residential mortgage	170,543			169,105				175,065				175,059				184,292
Agricultural and agricultural real estate	260,393			255,576				258,239				256,780				257,738
Consumer	219,731			223,800				228,311				231,709				233,259
Direct financing leases, net	1,233			1,420				1,951				2,326				< div style="text-align:right;font-size:8pt;">2,882
Unearned discount and deferred loan fees	(4,925		)	(4,985		)		(5,002			(4,840		)		(4,889		)
Total loans and leases held to maturity	$	2,361,567		$	2,385,772			$	2,369,233			$	2,331,142		< /td>	$	2,367,871
Loans covered under loss share agreements:
Commercial and commercial real estate	$	11,703		$	12,266			$	13,241			$	15,068			$	17,109
Residential mortgage	6,545			7,148				8,064				8,984				10,201		< div style="text-align:left;">
Agricultural and agricultural real estate	2,807			3,346				2,806				3,626				4,117
Consumer	2,502			2,660				3,857				4,182				4,748
Total loans and leases covered under loss share agreements	$	23,557		$	25,420			$	27,968			$	31,860			$	36,175
Asset Quality
Not covered under loss share agreements:
Nonaccrual loans	$	85,190		$	84,925			$	78,239			$	78,118			$	78,940
Loans and leases past due ninety days or more as to interest or principal payments	—			&mdash ;				47				17				5,063
Other real estate owned	32,129			32,554				28,290				30,205				32,643
Other repossessed assets	492			486				528				501				565
Total nonperforming assets not covered under loss share agreements	$	117,811		$	117,965			$	107,104			$	108,841			$	117,211
Covered under loss share agreements:
Nonaccrual loans	$	5,330		$	4,949			$	4,621			$	4,170			$	4,102
Loans and leases past due ninety days or more as to interest or principal payments	—			—				—				—				—
Other real estate owned	279			328				362				363				599
Other repossessed assets	—			—				—				—				—
Total nonperforming assets covered under loss share agreements	$	5,609		$	5,277			$	4,983			$	4,533			$	4,701
Allowance for Loan and Lease Losses
Balance, beginning of period	$	48,314		$	46,350			$	41,848			$	42,260			$	37,234
Provision for loan and lease losses	4,799			9,955				8,894				10,775				11,896
Charge offs on loans not covered by loss share agreements	(8,735		)	(8,879		)		(4,505		)		(10,115		)		(7,465		)
Charge offs on loans covered by loss share agreements	(43		)	(46	)		(264		)		(1,344		)		—
Recoveries	397			934				377				272				595
Balance, end of period	$	44,732		$	48,314			$	46,350			$	41,848			$	42,260
Asset Quality Ratios Excluding Assets Covered Under Loss Share Agreements
Ratio of nonperforming loans and leases to total loans and leases	3.61		%	3.56		%		3.30		%		3.35		%		3.55		%
Ratio of nonperforming assets to total assets	2.90		%	2.94		%		2.68		%		2.71		%		3.02		%
Annualized ratio of net loan charge-offs to average loans and leases	1.37		%	1.32		%		0.75		%		1.84		%		1.12		%
Allowance for loan and lease losses as a percent of loans and leases	1.89		%	2.03		%		1.96		%		1.80		%		1.78		%
Allowance for loan and lease losses as a percent of nonperforming loans and leases	52.51		%	56.89		%		59.21		%		53.56		%		50.31		%

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3,853,658


HEARTLAND FINANCIAL USA, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) DOLLARS IN THOUSANDS
	For the Quarter Ended
	September 30, 2010							September 30, 2009
	Average							Average
	Balance			Interest		Rate		Balance			Interest			Rate
Earning Assets
Securities:
Taxable	$	945,261		$	8,225	3.45	%	$	904,721		$	10,810		4.74	%
Nontaxable⁽¹⁾	274,819			4,228		6.10		194,621			3,246			6.62
Total securities	1,220,080			12,453		4.05		1,099,342			14,056			5.07
Interest bearing deposits	3,584			1		0.11		4,845			15			1.23
Federal funds sold	960			—		—		179			—			—
Loans and leases:
Commercial and commercial real estate ⁽¹⁾	1,733,120			26,195		6.00		1,716,855			25,399		5.87	< /font>
Residential mortgage	209,400			2,777		5.26		213,799			3,056			5.67
Agricultural and agricultural real estate ⁽¹⁾	261,640			4,022		6.10		262,241			4,231			6.40
Consumer	221,661			5,051		9.04		233,905			5,134			8.71
Direct financing leases, n et	1,320			19		5.71		3,361			48			5.67
Fees on loans	—			1,016		—		—			1,128			—
Less: allowance for loan and lease losses	(48,812		)	—		—		(37,920		)	—			—
Net loans and leases	2,378,329			39,080		6.52		2,392,241			38,996			6.47
Total earning assets	3,602,953			51,534		5.67	%	3,496,607			53,067			6.02	%
Nonearning Assets	409,154							357,051					< font style="font-family:inherit;font-size:10pt;">
Total Assets	$	4,012,107		$	51,534			$	3,853,658		$	53,067
Interest Bearing Liabilities
Interest bearing deposits				&nb sp;
Savings	$	1,546,129		$	3,041	0.78	< /div>	$	1,329,415		$	4,690		1.40
Time, $100,000 and over	282,587			1,808		2.54		366,573			2,655			2.87
Other time deposits	637,516			4,184		2.60		760,816< /div>			5,701			2.97
Short-term borrowings	195,298			305		0.62		125,863			154			0.49
Other borrowings	423,212			4,213		3.95		458,835			4,065			3.51
Total interest bearing liabilities	3,084,742			13,551		1.74	%	3,041,502			17,265			2.25	%
Noninterest Bearing Liabilities
Noninterest bearing deposits	552,696							455,521
Accrued interest and other liabilities	41,323							33,595
Total noninterest bearing liabilities	594,019							489,116
Stockholders' Equity	333,346							323,040
Total Liabilities and Stockholders' Equity	$ < /td>	4,012,107						$
Net interest income ⁽¹⁾				$	37,983						$	35,802
Net interest spread ⁽¹⁾						3.93	%							3.77	%
Net interest income to total earning assets ⁽¹⁾						4.18	%							4.06	%
Interest bearing li abilities to earning assets	85.62		%					86.98		%
⁽¹⁾Tax equivalent basis is calculated using an effective tax rate of 35%

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5.88


HEARTLAND FINANCIAL USA, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) DOLLARS IN THOUSANDS
	For the Nine Months Ended
	September 30, 2010										September 30, 2009
	Average										Average
	Balance			Interest				Rate			Balance				Interest			Rate
Earning Assets
Securities:
Taxable	$	950,772		$	26,618			3.74	%		$	852,192			$	29,269		4.59	%
Nontaxable ⁽¹⁾	256,544			12,033				6.27			177,734				8,845		< /font>	6.65
Total securities	1,207,316			38,651				4.28			1,029,926				38,114			4.95
Interest bearing deposits	3,662			13				0.47			2,402				18			1.00
Federal funds sol d	642			1				0.21			368				1			0.36
Loans and leases:
Commercial and commercia l real estate ⁽¹⁾	1,726,399			76,8 53				5.95			1,695,755				76,633			6.04
Residential mortgage	201,410			7,994				5.31			222,577				9,730			5.84
Agricultural and agricultural real estate ⁽¹⁾	260,237			12,104				6.22			258,528				12,547			6.49
Consumer	226,555			15,054				8.88			231,510				15,145			8.75
Direct financing leases, net	1,729			76						4,408		&n bsp;		176			5.34
Fees on loans	—			3,084				—			—				3,085			—
Less: allowance for loan and lease losses	(46,275		)	—			—			(36,676		)		—			—
Net loans and leases	2,370,055			115,165				6.50			2,376,102				117,316			6.60
Total earning assets	3,581,675			153,830				5.74	%		3,408,798				155,449			6.10	%
Nonearning Assets	428,409										349,824
Total Assets	$	4,010,084		$	153,830						$	3,758,622			$	155,449
Interest Bearing Liabilities
Interest bearing deposits
Savings	$	1,557,363		$	10,930 < /td>			0.94			$	1,219,645			$	13,782		1.51
Time, $100,000 and over	302,643			5,790		&nb sp;		2.56			383,783				8,858			3.09
Other time deposits	657,019			13,028				2.65			764,558				18,104			3.17
Short-term borrowings	192,357			830				0.58			146,430				539			0.49
Other borrowing s	428,540			12,380				3.86			467,307				12,803			3.66
Total interest bearing liabilities	3,137,922			42,958				1.83	%		2,981,723				54,086			2.43	%
Noninterest Bearing Liabilities
Noninterest bearing deposits	511,148										424,336
Accrued interest and other liabilities	36,520										34,202
Total noninterest bearing liabilities	547,668										458,538
Stockholders' Equity	324,494										318,361
Total Liabilities and Stockholders' Equity	$	4,010,084									$	3,758,622
Net interest income ⁽¹⁾				$	110,872										$	101,363
Net interest spread ⁽¹⁾								3.91	%									3.67	%
Net interest income to total earning assets ⁽¹⁾								4.14	%									3.98	%
Interest bearing liabilities to earning assets	87.61		%								87.47		%
⁽¹⁾ Tax equivalent basis is calculated using an effective tax rate of 35%

< td width="1%">

0.06


HEARTLAND FINANCIAL USA, INC. SELECTED FINANCIAL DATA - SUBSIDIARY BANKS (Unaudited) DOLLARS IN THOUSANDS
	As of and For the Qtr. Ended 9/30/2010			As of and For the Qtr. Ended 6/30/2010			As of and For the Qtr. Ended 3/31/2010			As of and For the Qtr. Ended 12/31/2009			As of and For the Qtr. Ended 9/30/2009



Total Assets
Dubuque Bank and Trust Company	$	1,201,966		$	1,128,580		$	1,160,474		$	1,249,124		$	1,104,217
New Mexico Bank & Trust	891,642			878,518			849,428			868,295			785,146
Wisconsin Community Bank	461,822			4 58,468			456,510			448,106			433,900
Rocky Mountain Bank	438,923			439,241			454,558			469,723			468,695
Galena State Bank & Trust Co.	289,558			283,038			287,495			291,412			288,501
Riverside Community Bank	297,272			295,671			283,195			283,258			277,639
Arizona Bank & Trust	251,245			267,959			267,453			258,280			268,600
First Community Bank	114,686			118,887			11 9,962			121,492			121,938
Summit Bank & Trust	100,843			97,332			95,442			97,025			99,724
Minnesota Bank & Trust	57,832			55,722			54,318			49,330			39,283
Total Deposits
Dubuque Bank and Trust Company	$	825,773		$	784,955		$	806,574		$	864,133		$	815,553
New Mexico Bank & Trust	655,724			624,454			608,030			589,468			563,414
Wisconsin Community Bank	363,868			358,034			355,880			358,994			338,328
Rocky Mountain Bank	349,853			350,636			363,842			376,487			364,570
Galena State Bank & Trust Co.	250,749			243,964			250,621			253,073			244,389
Riverside Community Bank	242,717			242,964			233,440			232,459			226,791
Arizona Bank & Trust	204,663			229,885			230,699			202,730			215,092
First Community Bank	92,802			97,057			98,691			100,328			99,351
Summit Bank & Trust	79,823			82,445			81,414		< /td>	85,131			89,130
Minnesota Bank & Trust	41,316			41,234			39,912			34,616			24,364
Net Income (Loss)
Dubuque Bank and Trust Company	$	5,727		$	3,304		$	4,921		$	3,751		$	3,863
New Mexico Bank & Trust	2,972			1,828			2,341			1,640			1,955
Wisconsin Community Bank	2,157			2,271			1,367			770			1,198
Rocky Mountain Bank	(695		)	1,204			(596		)	(6,399		)	(463		)
Galena State Bank & Trust Co.	877			967			1,046			663			962
Riverside Community Bank	(140		)	290			640			(55		)	283
Arizona Bank & Trust	42			(2,004		)	(2,900		)	(5,117		)	(1,227		)
First Community Bank	(374		)	19			399			(225		)	101
Summit Bank & Trust	201			399			(118		)	(490		)	(1,366		)
Minnesota Bank & Trust	(147		)	(134		)	(123		)	(203		)	(221		)
Return on Average Assets
Dubuque Bank and Trust Company	1.99		%	1.13		%	1.66		%	1.25		%	1.40		%
New Mexico Bank & Trust	1.34			0.83			1.12			0.79			0.99
Wisconsin Community Bank	1.85			1.98			1.23			0.69			1.09
Rocky Mountain Bank	(0.63		)	1.08			(0.53		)	(5.30		)	(0.39		)
Galena State Bank & Trust Co.	1.21			1.35			1.46			0.90			1.34
Riverside Community Bank	(0.19		)	0.40			0.93			(0.08		)	0.41
Arizona Bank & Trust	(0.06		)	(2.95		)	(4.62		)	(7.60		)	(1.86		)
First Community Bank	(1.26		)		1.35			(0.72		)	0.32
Summit Bank & Trust	0.79			1.65			(0.50		)	(1.94		)	(5.62		)
Minnesota Bank & Trust	(1.00		)	(1.00		)	(0.95		)	(1.95		)	(2.42		)
Net Interest Margin as a Percentage of Average Earning Assets
Dubuque Bank and Trust Company	4.01		%	4.04		%	4.05		%	3.98		%	3.98		%
New Mexico Bank & Trust	4.35			3.94			4.18			4.23			4.67
Wisconsin Community Bank	4.60			4.35			3.80		&n bsp;	3.91			3.76
Rocky Mountain Bank	3.81			3.79			3.90			3.68			3.80
Galena State Bank & Trust Co.	3.53			3.56			3.48			3.46			3.47
Riverside Community Bank	4.30			3.84			3.95			4.14			3.86
Arizona Bank & Trust	3.77			3.46			3.64			3.58			3.33
First Community Bank	3.40			3.58			3.79			4.24			4.31
Summit Bank & Trust	3.22			3.98			3.29			3.00			2.47
Minnesota Bank & Trust	3.14			3.24			3.24			4.16			3.86


HEARTLAND FINANCIAL USA, INC. SELECTED FINANCIAL DATA - SUBSIDIARY BANKS (Unaudited) DOLLARS IN THOUSANDS
	As of				As of				As of				As of				As of
	9/30/2010				6/30/2010				3/31/2010				12/31/2009				9/30/2009
Total Portfolio Loans and Leases
Dubuque Bank and Trust Company	$	672,401			$	698,562			$< /div>	681,668			$	658,274			$	653,579
New Mexico Bank & Trust	511,279				513,257				509,696				502,497			513,560
Wisconsin Community Bank	325,543				323,024				314,102				274,487				289,558
Rocky Mountain Bank	260,832				272,035				281,079				292,914				302,494
Galena State Bank & Trust Co.	131,955				133,666				131,539				134,104				136,700
Riverside Community Bank	165,539				159,137				157,511				161,280				161,025
Arizona Bank & Trust	129,871				129,445				131,115				138,604				142,387
First Community Bank	64,375				64,666				66,560				72,113				73,722
Summit Bank & Trust	52,396				53,543				58,272				58,108				58,410
Minnesota Bank & Trust	26,868				25,058				24,997				24,472				22,118
Allowance Fo r Loan and Lease Losses
Dubuque Bank and Trust Company	$	9,874			$	12,343			$	10,395			$	10,486			$	10,318
New Mexico Bank & Trust	8,297				8,388				7,999				7,578				7,641
Wisconsin Community Bank	4,518				4,306				5,328				5,390				5,133
Rocky Mountain Bank	5,181				6,465				7,434				5,897				6,152
Galena State Bank & Trust Co.	1,743				1,543				1,466				1,989				1,897
Riverside Community Bank	3,109				2,751				2,425				2,395				2,475
Arizona Bank & Trust	5,915				7,912				7,056				3,825				4,380
First Community Bank	2,087				1,262				993				1,072				1,122
Summit Bank & Trust	1,312				913				994				926				930
Minnesota Bank & Trust	270				242				240				295				276
Nonperforming Loans and Leases
Dubuque Bank and Trust Company	$	4,880			$	5,754			$	6,408			$	6,102			$	7,365
New Mexico Bank & Trust	14,651				15,901				13,998				14,069				18,693
Wisconsin Community Bank	12,070				10,159				15,773				14,396				13,276
Rocky Mountain Bank	29,986				31,981				21,558				18,443				17,286
Galena State Bank & Trust Co.	2,976				2,605				1,372				1,545				2,045
Riverside Community Bank	7,662		&n bsp;		7,722				5,543				8,104				9,493
Arizona Bank & Trust	5,758				5,165				4,922				5,158				5,689
First Community Bank	2,850				2,338				2,512				2,736			< /div>	3,866
Summit Bank & Trust	3,694		&nbs p;		2,691				5,513				6,719				5,528
Minnesota Bank & Trust	—				—				—				19				—
Allowance As a Percent of Total Loans and Leases
Dubuque Bank and Trust Company	1.47		%		1.77		%		1.52		%		1.59		%		1.58		%
New Mexico Bank & Trust	1.62				1.63				1.57				1.51				1.49
Wisconsin Community Bank	1.39			1.33				1.70				1.96				1.77
Rocky Mountain Bank	1.99				2.38				2.64				2.01				2.03
Galena State Bank & Trust Co.	1.32				1.15				1.11				1.48				1.39
Riverside Community Bank	1.88				1.73				1.54				1.48				1.54
Arizona Bank & Trust	4.55				6.11				5.38				2.76				3.08
First Community Bank	3.24				1.95				1.49				1.49				1.52
Summit Bank & Trust	2.50				1.71				1.71				1.59				1.59
Minnesota Bank & Trust	1.00				0.97				0.96				1.21				1.25

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0-24724		42-1405748
(Commission File Number)		(I.R.S. Employer Identification Number)


1398 Central Avenue, Dubuque, Iowa		52001
(Address of principal executive offices)		(Zip Code)


HEARTLAND FINANCIAL USA, INC.

By:	/s/ John K. Schmidt
	Executive Vice President, COO & CFO


CONTACT:	FOR IMMEDIATE RELEASE
John K. Schmidt	October 25, 2010

Chief Financial Officer
(563) 589-1994
jschmidt@htlf.com


(a)	Financial Statements of Business Acquired.


(b)	Pro Forma Financial Information.


(c)	Exhibits.


1.	Press Release dated October 25, 2010.