Date of Report (Date of earliest event reported) | April 23, 2012 |
Commission File Number: | 0-24724 |
Delaware | 42-1405748 | |
(State or other jurisdiction of incorporation) | (I.R.S. Employer Identification Number) |
1398 Central Avenue Dubuque, Iowa 52001 |
(Address of principal executive offices) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(a) | Financial Statements of Business Acquired. |
(b) | Pro Forma Financial Information. |
(c) | Exhibits. |
Date: April 23, 2012 | HEARTLAND FINANCIAL USA, INC. | ||
By: | /s/ John K. Schmidt | ||
Executive Vice President, COO & CFO |
CONTACT: | FOR IMMEDIATE RELEASE |
John K. Schmidt | April 23, 2012 |
Chief Operating Officer | |
Chief Financial Officer | |
(563) 589-1994 | |
jschmidt@htlf.com |
§ | Record net income of $12.8 million |
§ | Net interest margin of 4.23% |
§ | Growth in loans held to maturity of $51.1 million since December 31, 2011 |
§ | Deposit growth of $65.6 million since December 31, 2011 |
§ | Nonperforming assets not covered under loss share agreements decreased $12.2 million since December 31, 2011 |
§ | Continued expansion of mortgage operations in existing and new markets |
Quarter Ended March 31, | ||||||||
2012 | 2011 | |||||||
Net income (in millions) | $ | 12.8 | $ | 4.2 | ||||
Net income available to common stockholders (in millions) | 11.8 | 2.9 | ||||||
Diluted earnings per common share | 0.71 | 0.18 | ||||||
Return on average assets | 1.12 | % | 0.29 | % | ||||
Return on average common equity | 17.27 | 4.67 | ||||||
Net interest margin | 4.23 | 4.19 |
“Heartland's first quarter was, quite simply, our best quarter ever. Net income of $12.8 million was more than triple last year's first quarter earnings. The company's exceptional performance is the result of a combination of factors including a remarkable net interest margin of 4.23 percent, a sharp drop in provision for loan losses and solid gains on sale of loans.” Lynn B. Fuller, chairman, president and chief executive officer, Heartland Financial USA, Inc. |
As Of and For the Quarter Ended | |||||||||||||||||||
(Dollars in thousands) | 03/31/2012 | 12/31/2011 | 09/30/2011 | 06/30/2011 | 03/31/2011 | ||||||||||||||
Mortgage Service Fees | $ | 967 | $ | 932 | $ | 908 | $ | 892 | $ | 873 | |||||||||
Mortgage Servicing Rights Income | 1,986 | 1,380 | 743 | 616 | 984 | ||||||||||||||
Mortgage Servicing Rights Amortization | (1,718 | ) | (862 | ) | (1,103 | ) | (808 | ) | (864 | ) | |||||||||
Total Residential Mortgage Loan Servicing Income | $ | 1,235 | $ | 1,450 | $ | 548 | $ | 700 | $ | 993 | |||||||||
Valuation Adjustment on Mortgage Servicing Rights | $ | 13 | $ | (19 | ) | $ | — | $ | — | $ | — | ||||||||
Gains On Sale of Loans | $ | 8,502 | $ | 5,473 | $ | 3,183 | $ | 1,308 | $ | 1,402 | |||||||||
Residential Mortgage Loans Originated | $ | 293,724 | $ | 253,468 | $ | 143,317 | $ | 111,575 | $ | 99,876 | |||||||||
Residential Mortgage Loans Sold | $ | 243,836 | $ | 208,494 | $ | 97,591 | $ | 65,812 | $ | 81,033 | |||||||||
Residential Mortgage Loan Servicing Portfolio | $ | 1,626,129 | $ | 1,541,417 | $ | 1,467,127 | $ | 1,446,527 | $ | 1,435,977 |
(Dollars in thousands) | Nonperforming Loans | Other Real Estate Owned | Other Repossessed Assets | Total Nonperforming Assets | |||||||||||
December 31, 2011 | $ | 60,780 | $ | 44,387 | $ | 648 | $ | 105,815 | |||||||
Loan foreclosures | (8,786 | ) | 8,722 | 64 | — | ||||||||||
Net loan recoveries | 200 | — | — | 200 | |||||||||||
New nonperforming loans | 3,355 | — | — | 3,355 | |||||||||||
Reduction of nonperforming loans(1) | (2,420 | ) | — | — | (2,420 | ) | |||||||||
OREO/Repossessed sales proceeds | — | (12,066 | ) | (65 | ) | (12,131 | ) | ||||||||
OREO/Repossessed assets writedowns, net | — | (2,109 | ) | (8 | ) | (2,117 | ) | ||||||||
Net activity at Citizens Finance Co. | — | — | 71 | 71 | |||||||||||
March 31, 2012 | $ | 53,129 | $ | 38,934 | $ | 710 | $ | 92,773 | |||||||
(1) Includes principal reductions and transfers to performing status. |
HEARTLAND FINANCIAL USA, INC. | ||||||||
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) | ||||||||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | ||||||||
For the Quarter Ended March 31, | ||||||||
2012 | 2011 | |||||||
Interest Income | ||||||||
Interest and fees on loans and leases | $ | 38,399 | $ | 36,966 | ||||
Interest on securities: | ||||||||
Taxable | 7,572 | 9,221 | ||||||
Nontaxable | 2,271 | 1,754 | ||||||
Interest on federal funds sold | — | — | ||||||
Interest on deposits in other financial institutions | — | 1 | ||||||
Total Interest Income | 48,242 | 47,942 | ||||||
Interest Expense | ||||||||
Interest on deposits | 5,775 | 8,026 | ||||||
Interest on short-term borrowings | 213 | 259 | ||||||
Interest on other borrowings | 4,061 | 3,936 | ||||||
Total Interest Expense | 10,049 | 12,221 | ||||||
Net Interest Income | 38,193 | 35,721 | ||||||
Provision for loan and lease losses | 2,354 | 10,009 | ||||||
Net Interest Income After Provision for Loan and Lease Losses | 35,839 | 25,712 | ||||||
Noninterest Income | ||||||||
Service charges and fees | 3,584 | 3,361 | ||||||
Loan servicing income | 1,760 | 1,549 | ||||||
Trust fees | 2,613 | 2,479 | ||||||
Brokerage and insurance commissions | 910 | 848 | ||||||
Securities gains, net | 3,943 | 2,089 | ||||||
Gain (loss) on trading account securities | (3 | ) | 216 | |||||
Impairment loss on securities | (981 | ) | — | |||||
Gains on sale of loans | 8,502 | 1,402 | ||||||
Valuation adjustment on mortgage servicing rights | 13 | — | ||||||
Income on bank owned life insurance | 482 | 403 | ||||||
Other noninterest income | 2,565 | 261 | ||||||
Total Noninterest Income | 23,388 | 12,608 | ||||||
Noninterest Expense | ||||||||
Salaries and employee benefits | 23,996 | 18,186 | ||||||
Occupancy | 2,482 | 2,386 | ||||||
Furniture and equipment | 1,446 | 1,409 | ||||||
Professional fees | 2,760 | 3,019 | ||||||
FDIC insurance assessments | 864 | 1,345 | ||||||
Advertising | 1,071 | 850 | ||||||
Intangible assets amortization | 131 | 146 | ||||||
Net loss on repossessed assets | 2,904 | 1,632 | ||||||
Other noninterest expenses | 4,486 | 3,914 | ||||||
Total Noninterest Expense | 40,140 | 32,887 | ||||||
Income Before Income Taxes | 19,087 | 5,433 | ||||||
Income taxes | 6,272 | 1,212 | ||||||
Net Income | 12,815 | 4,221 | ||||||
Net income attributable to noncontrolling interest, net of tax | 26 | 16 | ||||||
Net Income Attributable to Heartland | 12,841 | 4,237 | ||||||
Preferred dividends and discount | (1,021 | ) | (1,336 | ) | ||||
Net Income Available to Common Stockholders | $ | 11,820 | $ | 2,901 | ||||
Earnings per common share-diluted | $ | 0.71 | $ | 0.18 | ||||
Weighted average shares outstanding-diluted | 16,729,925 | 16,557,353 |
HEARTLAND FINANCIAL USA, INC. | |||||||||||||||||||
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) | |||||||||||||||||||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | |||||||||||||||||||
For the Quarter Ended | |||||||||||||||||||
3/31/2012 | 12/31/2011 | 9/30/2011 | 6/30/2011 | 3/31/2011 | |||||||||||||||
Interest Income | |||||||||||||||||||
Interest and fees on loans and leases | $ | 38,399 | $ | 37,764 | $ | 37,393 | $ | 37,480 | $ | 36,966 | |||||||||
Interest on securities: | |||||||||||||||||||
Taxable | 7,572 | 7,518 | 8,051 | 9,305 | 9,221 | ||||||||||||||
Nontaxable | 2,271 | 2,340 | 2,145 | 1,796 | 1,754 | ||||||||||||||
Interest on federal funds sold | — | — | 2 | 1 | — | ||||||||||||||
Interest on deposits in other financial institutions | — | — | — | — | 1 | ||||||||||||||
Total Interest Income | 48,242 | 47,622 | 47,591 | 48,582 | 47,942 | ||||||||||||||
Interest Expense | |||||||||||||||||||
Interest on deposits | 5,775 | 6,495 | 7,028 | 7,675 | 8,026 | ||||||||||||||
Interest on short-term borrowings | 213 | 204 | 205 | 225 | 259 | ||||||||||||||
Interest on other borrowings | 4,061 | 4,086 | 4,123 | 4,081 | 3,936 | ||||||||||||||
Total Interest Expense | 10,049 | 10,785 | 11,356 | 11,981 | 12,221 | ||||||||||||||
Net Interest Income | 38,193 | 36,837 | 36,235 | 36,601 | 35,721 | ||||||||||||||
Provision for loan and lease losses | 2,354 | 7,784 | 7,727 | 3,845 | 10,009 | ||||||||||||||
Net Interest Income After Provision for Loan and Lease Losses | 35,839 | 29,053 | 28,508 | 32,756 | 25,712 | ||||||||||||||
Noninterest Income | |||||||||||||||||||
Service charges and fees | 3,584 | 3,686 | 3,657 | 3,599 | 3,361 | ||||||||||||||
Loan servicing income | 1,760 | 2,004 | 1,081 | 1,298 | 1,549 | ||||||||||||||
Trust fees | 2,613 | 2,337 | 2,384 | 2,656 | 2,479 | ||||||||||||||
Brokerage and insurance commissions | 910 | 889 | 918 | 856 | 848 | ||||||||||||||
Securities gains, net | 3,943 | 4,174 | 2,085 | 4,756 | 2,089 | ||||||||||||||
Gain (loss) on trading account securities | (3 | ) | (125 | ) | (83 | ) | 81 | 216 | |||||||||||
Impairment loss on securities | (981 | ) | — | — | — | — | |||||||||||||
Gains on sale of loans | 8,502 | 5,473 | 3,183 | 1,308 | 1,402 | ||||||||||||||
Valuation adjustment on mortgage servicing rights | 13 | (19 | ) | — | — | — | |||||||||||||
Income on bank owned life insurance | 482 | 407 | 208 | 331 | 403 | ||||||||||||||
Other noninterest income | 2,565 | 212 | (171 | ) | (216 | ) | 261 | ||||||||||||
Total Noninterest Income | 23,388 | 19,038 | 13,262 | 14,669 | 12,608 | ||||||||||||||
Noninterest Expense | |||||||||||||||||||
Salaries and employee benefits | 23,996 | 22,135 | 17,736 | 17,480 | 18,186 | ||||||||||||||
Occupancy | 2,482 | 2,368 | 2,396 | 2,213 | 2,386 | ||||||||||||||
Furniture and equipment | 1,446 | 1,475 | 1,392 | 1,360 | 1,409 | ||||||||||||||
Professional fees | 2,760 | 3,385 | 3,110 | 3,053 | 3,019 | ||||||||||||||
FDIC insurance assessments | 864 | 848 | 798 | 786 | 1,345 | ||||||||||||||
Advertising | 1,071 | 1,138 | 1,191 | 1,113 | 850 | ||||||||||||||
Intangible assets amortization | 131 | 141 | 141 | 144 | 146 | ||||||||||||||
Net loss on repossessed assets | 2,904 | 4,255 | 1,409 | 2,511 | 1,632 | ||||||||||||||
Other noninterest expenses | 4,486 | 4,458 | 3,690 | 3,683 | 3,914 | ||||||||||||||
Total Noninterest Expense | 40,140 | 40,203 | 31,863 | 32,343 | 32,887 | ||||||||||||||
Income Before Income Taxes | 19,087 | 7,888 | 9,907 | 15,082 | 5,433 | ||||||||||||||
Income taxes | 6,272 | 1,671 | 2,549 | 4,870 | 1,212 | ||||||||||||||
Net Income | 12,815 | 6,217 | 7,358 | 10,212 | 4,221 | ||||||||||||||
Net income attributable to noncontrolling interest, net of tax | 26 | 31 | (20 | ) | 9 | 16 | |||||||||||||
Net Income Attributable to Heartland | 12,841 | 6,248 | 7,338 | 10,221 | 4,237 | ||||||||||||||
Preferred dividends and discount | (1,021 | ) | (1,021 | ) | (3,947 | ) | (1,336 | ) | (1,336 | ) | |||||||||
Net Income Available to Common Stockholders | $ | 11,820 | $ | 5,227 | $ | 3,391 | $ | 8,885 | $ | 2,901 | |||||||||
Earnings per common share-diluted | $ | 0.71 | $ | 0.31 | $ | 0.20 | $ | 0.54 | $ | 0.18 | |||||||||
Weighted average shares outstanding-diluted | 16,729,925 | 16,599,741 | 16,585,021 | 16,568,701 | 16,557,353 |
HEARTLAND FINANCIAL USA, INC. | |||||||||||||||||||
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) | |||||||||||||||||||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | |||||||||||||||||||
As Of | |||||||||||||||||||
3/31/2012 | 12/31/2011 | 9/30/2011 | 6/30/2011 | 3/31/2011 | |||||||||||||||
Assets | |||||||||||||||||||
Cash and cash equivalents | $ | 150,122 | $ | 129,834 | $ | 81,605 | $ | 148,388 | $ | 86,278 | |||||||||
Securities | 1,221,909 | 1,326,592 | 1,323,464 | 1,193,480 | 1,244,447 | ||||||||||||||
Loans held for sale | 103,460 | 53,528 | 36,529 | 15,770 | 8,317 | ||||||||||||||
Loans and leases: | |||||||||||||||||||
Held to maturity | 2,532,419 | 2,481,284 | 2,374,186 | 2,351,785 | 2,360,604 | ||||||||||||||
Loans covered by loss share agreements | 11,360 | 13,347 | 14,766 | 16,190 | 19,201 | ||||||||||||||
Allowance for loan and lease losses | (39,362 | ) | (36,808 | ) | (44,195 | ) | (40,602 | ) | (43,271 | ) | |||||||||
Loans and leases, net | 2,504,417 | 2,457,823 | 2,344,757 | 2,327,373 | 2,336,534 | ||||||||||||||
Premises, furniture and equipment, net | 111,946 | 110,206 | 110,127 | 118,828 | 119,954 | ||||||||||||||
Goodwill | 25,909 | 25,909 | 25,909 | 25,909 | 25,909 | ||||||||||||||
Other intangible assets, net | 13,109 | 12,960 | 12,601 | 13,103 | 13,440 | ||||||||||||||
Cash surrender value on life insurance | 72,159 | 67,084 | 66,654 | 66,425 | 66,073 | ||||||||||||||
Other real estate, net | 38,934 | 44,387 | 39,188 | 39,075 | 35,007 | ||||||||||||||
FDIC indemnification asset | 1,270 | 1,343 | 992 | 1,035 | 1,396 | ||||||||||||||
Other assets | 69,616 | 75,392 | 70,853 | 61,231 | 66,019 | ||||||||||||||
Total Assets | $ | 4,312,851 | $ | 4,305,058 | $ | 4,112,679 | $ | 4,010,617 | $ | 4,003,374 | |||||||||
Liabilities and Equity | |||||||||||||||||||
Liabilities | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Demand | $ | 771,421 | $ | 737,323 | $ | 692,893 | $ | 649,523 | $ | 637,452 | |||||||||
Savings | 1,731,399 | 1,678,154 | 1,654,417 | 1,557,053 | 1,569,993 | ||||||||||||||
Brokered time deposits | 41,475 | 41,225 | 44,225 | 39,225 | 39,225 | ||||||||||||||
Other time deposits | 731,464 | 753,411 | 782,079 | 834,884 | 835,704 | ||||||||||||||
Total deposits | 3,275,759 | 3,210,113 | 3,173,614 | 3,080,685 | 3,082,374 | ||||||||||||||
Short-term borrowings | 229,533 | 270,081 | 173,199 | 168,021 | 194,934 | ||||||||||||||
Other borrowings | 377,362 | 372,820 | 375,976 | 379,718 | 365,281 | ||||||||||||||
Accrued expenses and other liabilities | 64,154 | 99,151 | 36,667 | 36,643 | 28,393 | ||||||||||||||
Total Liabilities | 3,946,808 | 3,952,165 | 3,759,456 | 3,665,067 | 3,670,982 | ||||||||||||||
Equity | |||||||||||||||||||
Preferred equity | 81,698 | 81,698 | 81,698 | 79,113 | 78,798 | ||||||||||||||
Common equity | 281,696 | 268,520 | 268,819 | 263,769 | 250,918 | ||||||||||||||
Total Heartland Stockholders' Equity | 363,394 | 350,218 | 350,517 | 342,882 | 329,716 | ||||||||||||||
Noncontrolling interest | 2,649 | 2,675 | 2,706 | 2,668 | 2,676 | ||||||||||||||
Total Equity | 366,043 | 352,893 | 353,223 | 345,550 | 332,392 | ||||||||||||||
Total Liabilities and Equity | $ | 4,312,851 | $ | 4,305,058 | $ | 4,112,679 | $ | 4,010,617 | $ | 4,003,374 | |||||||||
Common Share Data | |||||||||||||||||||
Book value per common share | $ | 17.09 | $ | 16.29 | $ | 16.33 | $ | 16.04 | $ | 15.28 | |||||||||
ASC 320 effect on book value per common share | $ | 1.09 | $ | 0.97 | $ | 1.22 | $ | 0.86 | $ | 0.49 | |||||||||
Common shares outstanding, net of treasury stock | 16,486,539 | 16,484,790 | 16,459,338 | 16,442,437 | 16,418,228 | ||||||||||||||
Tangible Capital Ratio (1) | 5.93 | % | 5.63 | % | 5.90 | % | 5.92 | % | 5.61 | % | |||||||||
(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). This is a non-GAAP financial measure. |
HEARTLAND FINANCIAL USA, INC. | |||||||||||||||||||
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) | |||||||||||||||||||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | |||||||||||||||||||
For the Quarter Ended | |||||||||||||||||||
3/31/2012 | 12/31/2011 | 9/30/2011 | 6/30/2011 | 3/31/2011 | |||||||||||||||
Average Balances | |||||||||||||||||||
Assets | $ | 4,225,815 | $ | 4,197,916 | $ | 4,063,327 | $ | 4,014,290 | $ | 4,009,863 | |||||||||
Loans and leases, net of unearned | 2,577,429 | 2,487,778 | 2,399,047 | 2,388,088 | 2,399,656 | ||||||||||||||
Deposits | 3,201,073 | 3,215,793 | 3,110,978 | 3,059,360 | 3,068,753 | ||||||||||||||
Earning assets | 3,784,709 | 3,749,612 | 3,624,559 | 3,600,095 | 3,583,883 | ||||||||||||||
Interest bearing liabilities | 3,081,340 | 3,066,704 | 3,002,868 | 3,004,928 | 3,010,629 | ||||||||||||||
Common stockholders' equity | 275,275 | 267,025 | 270,696 | 260,334 | 251,833 | ||||||||||||||
Total stockholders' equity | 359,644 | 351,538 | 353,003 | 341,797 | 333,016 | ||||||||||||||
Tangible common stockholders' equity | 247,744 | 239,384 | 242,886 | 232,381 | 223,736 | ||||||||||||||
Earnings Performance Ratios | |||||||||||||||||||
Annualized return on average assets | 1.12 | % | 0.49 | % | 0.33 | % | 0.89 | % | 0.29 | % | |||||||||
Annualized return on average common equity | 17.27 | % | 7.77 | % | 4.97 | % | 13.69 | % | 4.67 | % | |||||||||
Annualized return on average common tangible equity | 19.19 | % | 8.66 | % | 5.54 | % | 15.34 | % | 5.26 | % | |||||||||
Annualized net interest margin (1) | 4.23 | % | 4.08 | % | 4.14 | % | 4.23 | % | 4.19 | % | |||||||||
Efficiency ratio (2) | 67.71 | % | 75.29 | % | 65.07 | % | 67.53 | % | 69.17 | % | |||||||||
(1) Computed on a tax equivalent basis 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. This is a non-GAAP financial measure. |
HEARTLAND FINANCIAL USA, INC. | |||||||||||||||||||
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) | |||||||||||||||||||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | |||||||||||||||||||
As of and for the Quarter Ended | |||||||||||||||||||
3/31/2012 | 12/31/2011 | 9/30/2011 | 6/30/2011 | 3/31/2011 | |||||||||||||||
Loan and Lease Data | |||||||||||||||||||
Loans held to maturity: | |||||||||||||||||||
Commercial and commercial real estate | $ | 1,842,566 | $ | 1,809,450 | $ | 1,725,586 | $ | 1,709,955 | $ | 1,727,530 | |||||||||
Residential mortgage | 202,883 | 194,436 | 179,628 | 173,808 | 169,513 | ||||||||||||||
Agricultural and agricultural real estate | 270,687 | 262,975 | 256,857 | 255,257 | 253,189 | ||||||||||||||
Consumer | 222,387 | 220,099 | 217,007 | 217,263 | 214,682 | ||||||||||||||
Direct financing leases, net | 323 | 450 | 604 | 667 | 876 | ||||||||||||||
Unearned discount and deferred loan fees | (6,427 | ) | (6,126 | ) | (5,496 | ) | (5,165 | ) | (5,186 | ) | |||||||||
Total loans and leases held to maturity | $ | 2,532,419 | $ | 2,481,284 | $ | 2,374,186 | $ | 2,351,785 | $ | 2,360,604 | |||||||||
Loans covered under loss share agreements: | |||||||||||||||||||
Commercial and commercial real estate | $ | 5,730 | $ | 6,380 | $ | 6,788 | $ | 7,315 | $ | 9,368 | |||||||||
Residential mortgage | 3,734 | 4,158 | 4,410 | 4,747 | 5,291 | ||||||||||||||
Agricultural and agricultural real estate | 934 | 1,659 | 2,139 | 2,298 | 2,628 | ||||||||||||||
Consumer | 962 | 1,150 | 1,429 | 1,830 | 1,914 | ||||||||||||||
Total loans and leases covered under loss share agreements | $ | 11,360 | $ | 13,347 | $ | 14,766 | $ | 16,190 | $ | 19,201 | |||||||||
Asset Quality | |||||||||||||||||||
Not covered under loss share agreements: | |||||||||||||||||||
Nonaccrual loans | $ | 49,940 | $ | 57,435 | $ | 72,629 | $ | 68,110 | $ | 87,970 | |||||||||
Loans and leases past due ninety days or more as to interest or principal payments | — | — | — | — | 3,038 | ||||||||||||||
Other real estate owned | 38,693 | 43,506 | 38,640 | 38,642 | 34,532 | ||||||||||||||
Other repossessed assets | 710 | 648 | 398 | 188 | 223 | ||||||||||||||
Total nonperforming assets not covered under loss share agreements | $ | 89,343 | $ | 101,589 | $ | 111,667 | $ | 106,940 | $ | 125,763 | |||||||||
Performing troubled debt restructured loans | 21,379 | 25,704 | 24,853 | 31,246 | 22,613 | ||||||||||||||
Covered under loss share agreements: | |||||||||||||||||||
Nonaccrual loans | $ | 3,189 | $ | 3,345 | $ | 3,886 | $ | 4,480 | $ | 4,564 | |||||||||
Other real estate owned | 241 | 881 | 548 | 433 | 475 | ||||||||||||||
Total nonperforming assets covered under loss share agreements | $ | 3,430 | $ | 4,226 | $ | 4,434 | $ | 4,913 | $ | 5,039 | |||||||||
Allowance for Loan and Lease Losses | |||||||||||||||||||
Balance, beginning of period | $ | 36,808 | $ | 44,195 | $ | 40,602 | $ | 43,271 | $ | 42,693 | |||||||||
Provision for loan and lease losses | 2,354 | 7,784 | 7,727 | 3,845 | 10,009 | ||||||||||||||
Charge-offs on loans not covered by loss share agreements | (1,608 | ) | (15,616 | ) | (5,985 | ) | (8,076 | ) | (9,785 | ) | |||||||||
Charge-offs on loans covered by loss share agreements | — | (5 | ) | (168 | ) | (107 | ) | (238 | ) | ||||||||||
Recoveries | 1,808 | 450 | 2,019 | 1,669 | 592 | ||||||||||||||
Balance, end of period | $ | 39,362 | $ | 36,808 | $ | 44,195 | $ | 40,602 | $ | 43,271 | |||||||||
Asset Quality Ratios Excluding Assets Covered Under Loss Share Agreements | |||||||||||||||||||
Ratio of nonperforming loans and leases to total loans and leases | 1.97 | % | 2.31 | % | 3.06 | % | 2.90 | % | 3.86 | % | |||||||||
Ratio of nonperforming assets to total assets | 2.07 | % | 2.39 | % | 2.72 | % | 2.67 | % | 3.14 | % | |||||||||
Annualized ratio of net loan charge-offs to average loans and leases | (0.03 | )% | 2.42 | % | 0.66 | % | 1.08 | % | 1.59 | % | |||||||||
Allowance for loan and lease losses as a percent of loans and leases | 1.55 | % | 1.48 | % | 1.86 | % | 1.73 | % | 1.83 | % | |||||||||
Allowance for loan and lease losses as a percent of nonperforming loans and leases | 78.82 | % | 64.09 | % | 60.85 | % | 59.61 | % | 47.55 | % |
HEARTLAND FINANCIAL USA, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) DOLLARS IN THOUSANDS | |||||||||||||||||||||
For the Quarter Ended | |||||||||||||||||||||
March 31, 2012 | March 31, 2011 | ||||||||||||||||||||
Average | Average | ||||||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||
Earning Assets | |||||||||||||||||||||
Securities: | |||||||||||||||||||||
Taxable | $ | 1,021,228 | $ | 7,572 | 2.98 | % | $ | 1,060,943 | $ | 9,221 | 3.52 | % | |||||||||
Nontaxable(1) | 219,283 | 3,494 | 6.41 | 161,441 | 2,699 | 6.78 | |||||||||||||||
Total securities | 1,240,511 | 11,066 | 3.59 | 1,222,384 | 11,920 | 3.95 | |||||||||||||||
Interest bearing deposits | 3,823 | — | — | 4,381 | 1 | 0.09 | |||||||||||||||
Federal funds sold | 148 | — | — | 332 | — | — | |||||||||||||||
Loans and leases: | |||||||||||||||||||||
Commercial and commercial real estate (1) | 1,827,353 | 24,990 | 5.50 | 1,746,757 | 24,957 | 5.79 | |||||||||||||||
Residential mortgage | 264,596 | 3,116 | 4.74 | 185,299 | 2,410 | 5.27 | |||||||||||||||
Agricultural and agricultural real estate (1) | 266,763 | 3,933 | 5.93 | 252,999 | 3,840 | 6.16 | |||||||||||||||
Consumer | 218,337 | 5,377 | 9.90 | 213,668 | 4,850 | 9.21 | |||||||||||||||
Direct financing leases, net | 380 | 5 | 5.29 | 933 | 13 | 5.65 | |||||||||||||||
Fees on loans | — | 1,395 | — | — | 1,254 | — | |||||||||||||||
Less: allowance for loan and lease losses | (37,202 | ) | — | — | (42,870 | ) | — | — | |||||||||||||
Net loans and leases | 2,540,227 | 38,816 | 6.15 | 2,356,786 | 37,324 | 6.42 | |||||||||||||||
Total earning assets | 3,784,709 | 49,882 | 5.30 | % | 3,583,883 | 49,245 | 5.57 | % | |||||||||||||
Nonearning Assets | 441,106 | 425,980 | |||||||||||||||||||
Total Assets | $ | 4,225,815 | $ | 49,882 | $ | 4,009,863 | $ | 49,245 | |||||||||||||
Interest Bearing Liabilities | |||||||||||||||||||||
Savings | $ | 1,679,651 | $ | 1,663 | 0.40 | $ | 1,553,295 | $ | 2,547 | 0.67 | |||||||||||
Time, $100,000 and over | 247,396 | 1,228 | 2.00 | 270,447 | 1,610 | 2.41 | |||||||||||||||
Other time deposits | 533,153 | 2,884 | 2.18 | 613,682 | 3,869 | 2.56 | |||||||||||||||
Short-term borrowings | 247,090 | 213 | 0.35 | 210,032 | 259 | 0.50 | |||||||||||||||
Other borrowings | 374,050 | 4,061 | 4.37 | 363,173 | 3,936 | 4.40 | |||||||||||||||
Total interest bearing liabilities | 3,081,340 | 10,049 | 1.31 | % | 3,010,629 | 12,221 | 1.65 | % | |||||||||||||
Noninterest Bearing Liabilities | |||||||||||||||||||||
Noninterest bearing deposits | 740,873 | 631,329 | |||||||||||||||||||
Accrued interest and other liabilities | 43,958 | 34,889 | |||||||||||||||||||
Total noninterest bearing liabilities | 784,831 | 666,218 | |||||||||||||||||||
Stockholders' Equity | 359,644 | 333,016 | |||||||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 4,225,815 | $ | 4,009,863 | |||||||||||||||||
Net interest income (1) | $ | 39,833 | $ | 37,024 | |||||||||||||||||
Net interest spread (1) | 3.99 | % | 3.92 | % | |||||||||||||||||
Net interest income to total earning assets (1) | 4.23 | % | 4.19 | % | |||||||||||||||||
Interest bearing liabilities to earning assets | 81.42 | % | 84.00 | % | |||||||||||||||||
(1) Computed on a tax equivalent basis 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 | |||||||||||||||
3/31/2012 | 12/31/2011 | 9/30/2011 | 6/30/2011 | 3/31/2011 | |||||||||||
Total Assets | |||||||||||||||
Dubuque Bank and Trust Company | $ | 1,407,827 | $ | 1,382,226 | $ | 1,275,116 | $ | 1,294,654 | $ | 1,270,387 | |||||
New Mexico Bank & Trust | 929,804 | 993,182 | 921,973 | 891,609 | 880,980 | ||||||||||
Wisconsin Community Bank | 491,741 | 524,958 | 486,319 | 453,427 | 469,305 | ||||||||||
Rocky Mountain Bank | 432,902 | 440,805 | 425,132 | 419,697 | 417,846 | ||||||||||
Riverside Community Bank | 343,232 | 325,388 | 316,945 | 322,601 | 302,057 | ||||||||||
Galena State Bank & Trust Co. | 289,740 | 290,656 | 294,299 | 296,318 | 275,807 | ||||||||||
Arizona Bank & Trust | 239,434 | 227,993 | 221,481 | 222,148 | 231,020 | ||||||||||
Summit Bank & Trust | 98,247 | 100,994 | 99,528 | 95,130 | 93,600 | ||||||||||
Minnesota Bank & Trust | 95,462 | 81,457 | 75,021 | 67,594 | 62,251 | ||||||||||
Total Deposits | |||||||||||||||
Dubuque Bank and Trust Company | $ | 978,854 | $ | 938,000 | $ | 929,854 | $ | 892,526 | $ | 935,424 | |||||
New Mexico Bank & Trust | 697,060 | 690,293 | 681,413 | 674,096 | 659,373 | ||||||||||
Wisconsin Community Bank | 409,994 | 429,062 | 402,957 | 371,037 | 374,758 | ||||||||||
Rocky Mountain Bank | 362,307 | 365,373 | 356,353 | 349,299 | 348,723 | ||||||||||
Riverside Community Bank | 286,529 | 264,699 | 268,432 | 271,553 | 245,639 | ||||||||||
Galena State Bank & Trust Co. | 245,780 | 243,639 | 255,006 | 257,413 | 239,445 | ||||||||||
Arizona Bank & Trust | 183,321 | 177,457 | 179,369 | 179,885 | 188,415 | ||||||||||
Summit Bank & Trust | 81,290 | 81,224 | 85,431 | 80,793 | 80,327 | ||||||||||
Minnesota Bank & Trust | 78,338 | 66,875 | 57,058 | 50,091 | 46,205 | ||||||||||
Net Income (Loss) | |||||||||||||||
Dubuque Bank and Trust Company | $ | 9,604 | $ | 4,846 | $ | 5,602 | $ | 6,132 | $ | 4,958 | |||||
New Mexico Bank & Trust | 2,216 | 2,197 | 1,509 | 2,505 | 958 | ||||||||||
Wisconsin Community Bank | 2,153 | 2,313 | 2,443 | 1,882 | 1,466 | ||||||||||
Rocky Mountain Bank | 963 | 493 | 780 | 646 | (630 | ) | |||||||||
Riverside Community Bank | 369 | 800 | (339 | ) | 953 | (212 | ) | ||||||||
Galena State Bank & Trust Co. | 437 | 1,139 | 941 | 1,113 | 579 | ||||||||||
Arizona Bank & Trust | (215 | ) | (1,202 | ) | (960 | ) | 546 | (1,452 | ) | ||||||
Summit Bank & Trust | (123 | ) | (154 | ) | (160 | ) | 116 | (604 | ) | ||||||
Minnesota Bank & Trust | (129 | ) | (157 | ) | 102 | (45 | ) | (81 | ) | ||||||
Return on Average Assets | |||||||||||||||
Dubuque Bank and Trust Company | 2.88 | % | 1.44 | % | 1.74 | % | 1.92 | % | 1.60 | % | |||||
New Mexico Bank & Trust | 0.96 | 0.93 | 0.65 | 1.11 | 0.43 | ||||||||||
Wisconsin Community Bank | 1.69 | 1.83 | 2.05 | 1.63 | 1.26 | ||||||||||
Rocky Mountain Bank | 0.89 | 0.45 | 0.73 | 0.61 | (0.61 | ) | |||||||||
Riverside Community Bank | 0.45 | 0.98 | (0.42 | ) | 1.24 | (0.28 | ) | ||||||||
Galena State Bank & Trust Co. | 0.62 | 1.54 | 1.28 | 1.61 | 0.85 | ||||||||||
Arizona Bank & Trust | (0.37 | ) | (2.13 | ) | (1.72 | ) | 0.94 | (2.58 | ) | ||||||
Summit Bank & Trust | (0.50 | ) | (0.63 | ) | (0.66 | ) | 0.49 | (2.59 | ) | ||||||
Minnesota Bank & Trust | (0.58 | ) | (0.77 | ) | 0.56 | (0.25 | ) | (0.53 | ) | ||||||
Net Interest Margin as a Percentage of Average Earning Assets | |||||||||||||||
Dubuque Bank and Trust Company | 4.03 | % | 4.00 | % | 4.01 | % | 3.62 | % | 3.59 | % | |||||
New Mexico Bank & Trust | 4.02 | 3.85 | 4.10 | 4.33 | 4.34 | ||||||||||
Wisconsin Community Bank | 4.41 | 4.30 | 4.33 | 4.60 | 4.57 | ||||||||||
Rocky Mountain Bank | 4.33 | 4.06 | 4.03 | 3.85 | 3.91 | ||||||||||
Riverside Community Bank | 3.63 | 3.64 | 3.58 | 3.90 | 4.01 | ||||||||||
Galena State Bank and Trust Co. | 3.89 | 3.69 | 3.55 | 3.86 | 3.73 | ||||||||||
Arizona Bank & Trust | 4.40 | 4.06 | 4.10 | 4.52 | 4.25 | ||||||||||
Summit Bank & Trust | 4.07 | 3.41 | 3.84 | 3.33 | 2.99 | ||||||||||
Minnesota Bank & Trust | 4.75 | 4.56 | 4.82 | 4.55 | 4.75 |
HEARTLAND FINANCIAL USA, INC. SELECTED FINANCIAL DATA - SUBSIDIARY BANKS (Unaudited) DOLLARS IN THOUSANDS | |||||||||||||||||||
As of | |||||||||||||||||||
3/31/2012 | 12/31/2011 | 9/30/2011 | 6/30/2011 | 3/31/2011 | |||||||||||||||
Total Portfolio Loans and Leases | |||||||||||||||||||
Dubuque Bank and Trust Company | $ | 796,789 | $ | 778,467 | $ | 731,356 | $ | 730,802 | $ | 748,354 | |||||||||
New Mexico Bank & Trust | 506,424 | 508,874 | 507,416 | 506,810 | 513,568 | ||||||||||||||
Wisconsin Community Bank | 340,841 | 333,112 | 318,906 | 314,432 | 320,841 | ||||||||||||||
Rocky Mountain Bank | 264,964 | 256,704 | 250,728 | 247,718 | 238,201 | ||||||||||||||
Riverside Community Bank | 153,174 | 155,320 | 155,995 | 157,901 | 161,238 | ||||||||||||||
Galena State Bank and Trust Co. | 167,677 | 157,398 | 143,680 | 138,726 | 136,210 | ||||||||||||||
Arizona Bank & Trust | 150,629 | 146,346 | 137,356 | 137,853 | 134,254 | ||||||||||||||
Summit Bank & Trust | 63,658 | 62,422 | 53,402 | 52,570 | 47,024 | ||||||||||||||
Minnesota Bank & Trust | 73,413 | 58,058 | 50,545 | 43,109 | 40,197 | ||||||||||||||
Allowance For Loan and Lease Losses | |||||||||||||||||||
Dubuque Bank and Trust Company | $ | 9,584 | $ | 9,365 | $ | 10,087 | $ | 10,148 | $ | 11,984 | |||||||||
New Mexico Bank & Trust | 7,110 | 6,633 | 10,271 | 8,405 | 7,277 | ||||||||||||||
Wisconsin Community Bank | 3,629 | 3,458 | 3,288 | 3,637 | 3,369 | ||||||||||||||
Rocky Mountain Bank | 4,204 | 3,865 | 3,953 | 4,074 | 4,425 | ||||||||||||||
Riverside Community Bank | 3,206 | 2,834 | 4,770 | 2,702 | 3,693 | ||||||||||||||
Galena State Bank & Trust Co. | 1,854 | 1,835 | 1,956 | 2,077 | 2,278 | ||||||||||||||
Arizona Bank & Trust | 5,315 | 4,627 | 5,590 | 5,502 | 6,018 | ||||||||||||||
Summit Bank & Trust | 1,132 | 1,012 | 1,108 | 1,091 | 1,103 | ||||||||||||||
Minnesota Bank & Trust | 748 | 588 | 507 | 449 | 636 | ||||||||||||||
Nonperforming Loans and Leases | |||||||||||||||||||
Dubuque Bank and Trust Company | $ | 3,107 | $ | 3,634 | $ | 4,298 | $ | 4,910 | $ | 12,897 | |||||||||
New Mexico Bank & Trust | 13,368 | 15,161 | 15,404 | 16,053 | 15,979 | ||||||||||||||
Wisconsin Community Bank | 7,482 | 8,074 | 11,871 | 10,359 | 11,776 | ||||||||||||||
Rocky Mountain Bank | 7,787 | 8,662 | 14,180 | 16,971 | 18,303 | ||||||||||||||
Riverside Community Bank | 5,458 | 6,729 | 5,870 | 5,962 | 11,443 | ||||||||||||||
Galena State Bank & Trust Co. | 3,699 | 3,853 | 5,309 | 5,182 | 6,259 | ||||||||||||||
Arizona Bank & Trust | 5,755 | 7,927 | 10,811 | 4,054 | 6,959 | ||||||||||||||
Summit Bank & Trust | 2,709 | 2,848 | 4,159 | 3,905 | 4,527 | ||||||||||||||
Minnesota Bank & Trust | 6 | 6 | 6 | 110 | 2,229 | ||||||||||||||
Allowance As a Percent of Total Loans and Leases | |||||||||||||||||||
Dubuque Bank and Trust Company | 1.20 | % | 1.20 | % | 1.38 | % | 1.39 | % | 1.60 | % | |||||||||
New Mexico Bank & Trust | 1.40 | 1.30 | 2.02 | 1.66 | 1.42 | ||||||||||||||
Wisconsin Community Bank | 1.06 | 1.04 | 1.03 | 1.16 | 1.05 | ||||||||||||||
Rocky Mountain Bank | 1.59 | 1.51 | 1.58 | 1.64 | 1.86 | ||||||||||||||
Riverside Community Bank | 2.09 | 1.82 | 3.06 | 1.71 | 2.29 | ||||||||||||||
Galena State Bank & Trust Co. | 1.11 | 1.17 | 1.36 | 1.50 | 1.67 | ||||||||||||||
Arizona Bank & Trust | 3.53 | 3.16 | 4.07 | 3.99 | 4.48 | ||||||||||||||
Summit Bank & Trust | 1.78 | 1.62 | 2.07 | 2.08 | 2.35 | ||||||||||||||
Minnesota Bank & Trust | 1.02 | 1.01 | 1.00 | 1.04 | 1.58 |