Date of Report (Date of earliest event reported) | April 25, 2016 |
Commission File Number: | 001-15393 |
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 25, 2016 | HEARTLAND FINANCIAL USA, INC. | ||
By: | /s/ Bryan R. McKeag | ||
Executive Vice President | |||
Chief Financial Officer |
CONTACT: | FOR IMMEDIATE RELEASE |
Bryan R. McKeag | April 25, 2016 |
Executive Vice President | |
Chief Financial Officer | |
(563) 589-1994 | |
bmckeag@htlf.com |
§ | Record quarterly net income available to common stockholders of $19.8 million, a 28% increase from first quarter of prior year | |
§ | Diluted earnings per common share of $0.82 | |
§ | Net interest margin of 4.19% | |
§ | Total assets reached $8.25 billion, a $1.75 billion or 27% increase over March 31, 2015 | |
§ | Return on average tangible common equity of 16.45% | |
§ | Completed acquisition of CIC Bancshares, Inc. in Denver, Colorado | |
§ | Completed systems conversion of Premier Valley Bank in Fresno, California | |
§ | Terminated participation in the SBLF program in full with redemption of $81.7 million of Series C Preferred Stock issued to the United States Department of the Treasury |
Quarter Ended March 31, | |||||||
2016 | 2015 | ||||||
Net income (in millions) | $ | 20.0 | $ | 15.7 | |||
Net income available to common stockholders (in millions) | 19.8 | 15.5 | |||||
Diluted earnings per common share | 0.82 | 0.76 | |||||
Return on average assets | 0.99 | % | 0.97 | % | |||
Return on average common equity | 12.68 | 13.58 | |||||
Return on average tangible common equity | 16.45 | 15.67 | |||||
Net interest margin | 4.19 | 3.90 |
"Heartland set several quarterly earnings records in the first quarter of 2016, producing diluted earnings per common share of $0.82 and net income available to common stockholders of $19.8 million, which represents an increase of 28 percent over the first quarter of last year." Lynn B. Fuller, chairman and chief executive officer, Heartland Financial USA, Inc. |
HEARTLAND FINANCIAL USA, INC. | |||||||
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) | |||||||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | |||||||
For the Quarter Ended March 31, | |||||||
2016 | 2015 | ||||||
Interest Income | |||||||
Interest and fees on loans and leases | $ | 68,425 | $ | 53,049 | |||
Interest on securities: | |||||||
Taxable | 8,735 | 7,132 | |||||
Nontaxable | 3,510 | 2,916 | |||||
Interest on federal funds sold | 10 | 1 | |||||
Interest on deposits in other financial institutions | 4 | 4 | |||||
Total Interest Income | 80,684 | 63,102 | |||||
Interest Expense | |||||||
Interest on deposits | 4,173 | 4,172 | |||||
Interest on short-term borrowings | 329 | 198 | |||||
Interest on other borrowings | 3,475 | 4,802 | |||||
Total Interest Expense | 7,977 | 9,172 | |||||
Net Interest Income | 72,707 | 53,930 | |||||
Provision for loan and lease losses | 2,067 | 1,671 | |||||
Net Interest Income After Provision for Loan and Lease Losses | 70,640 | 52,259 | |||||
Noninterest Income | |||||||
Service charges and fees | 7,162 | 5,404 | |||||
Loan servicing income | 1,268 | 1,041 | |||||
Trust fees | 3,813 | 3,631 | |||||
Brokerage and insurance commissions | 1,022 | 1,087 | |||||
Securities gains, net | 3,526 | 4,353 | |||||
Gains on sale of loans held for sale | 11,065 | 13,742 | |||||
Income on bank owned life insurance | 522 | 524 | |||||
Other noninterest income | 1,200 | 881 | |||||
Total Noninterest Income | 29,578 | 30,663 | |||||
Noninterest Expense | |||||||
Salaries and employee benefits | 41,714 | 36,638 | |||||
Occupancy | 5,003 | 4,259 | |||||
Furniture and equipment | 2,113 | 2,106 | |||||
Professional fees | 7,010 | 6,044 | |||||
FDIC insurance assessments | 1,168 | 956 | |||||
Advertising | 1,284 | 1,181 | |||||
Intangible assets amortization | 1,895 | 631 | |||||
Other real estate and loan collection expenses | 572 | 465 | |||||
Loss on sales/valuations of assets, net | 313 | 353 | |||||
Other noninterest expenses | 9,237 | 6,981 | |||||
Total Noninterest Expense | 70,309 | 59,614 | |||||
Income Before Income Taxes | 29,909 | 23,308 | |||||
Income taxes | 9,900 | 7,599 | |||||
Net Income | 20,009 | 15,709 | |||||
Preferred dividends | (168 | ) | (204 | ) | |||
Net Income Available to Common Stockholders | $ | 19,841 | $ | 15,505 | |||
Earnings per common share-diluted | $ | 0.82 | $ | 0.76 | |||
Weighted average shares outstanding-diluted | 24,117,384 | 20,493,266 |
HEARTLAND FINANCIAL USA, INC. | |||||||||||||||||||
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) | |||||||||||||||||||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | |||||||||||||||||||
For the Quarter Ended | |||||||||||||||||||
3/31/2016 | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | |||||||||||||||
Interest Income | |||||||||||||||||||
Interest and fees on loans and leases | $ | 68,425 | $ | 59,905 | $ | 58,328 | $ | 55,824 | $ | 53,049 | |||||||||
Interest on securities: | |||||||||||||||||||
Taxable | 8,735 | 6,917 | 5,858 | 6,739 | 7,132 | ||||||||||||||
Nontaxable | 3,510 | 3,311 | 3,077 | 2,874 | 2,916 | ||||||||||||||
Interest on federal funds sold | 10 | 21 | 1 | 1 | 1 | ||||||||||||||
Interest on deposits in other financial institutions | 4 | 3 | 4 | 3 | 4 | ||||||||||||||
Total Interest Income | 80,684 | 70,157 | 67,268 | 65,441 | 63,102 | ||||||||||||||
Interest Expense | |||||||||||||||||||
Interest on deposits | 4,173 | 3,772 | 3,767 | 3,819 | 4,172 | ||||||||||||||
Interest on short-term borrowings | 329 | 200 | 228 | 212 | 198 | ||||||||||||||
Interest on other borrowings | 3,475 | 3,485 | 3,549 | 3,766 | 4,802 | ||||||||||||||
Total Interest Expense | 7,977 | 7,457 | 7,544 | 7,797 | 9,172 | ||||||||||||||
Net Interest Income | 72,707 | 62,700 | 59,724 | 57,644 | 53,930 | ||||||||||||||
Provision for loan and lease losses | 2,067 | 2,171 | 3,181 | 5,674 | 1,671 | ||||||||||||||
Net Interest Income After Provision for Loan and Lease Losses | 70,640 | 60,529 | 56,543 | 51,970 | 52,259 | ||||||||||||||
Noninterest Income | |||||||||||||||||||
Service charges and fees | 7,162 | 6,654 | 6,350 | 5,900 | 5,404 | ||||||||||||||
Loan servicing income | 1,268 | 1,704 | 1,368 | 1,163 | 1,041 | ||||||||||||||
Trust fees | 3,813 | 3,230 | 3,507 | 3,913 | 3,631 | ||||||||||||||
Brokerage and insurance commissions | 1,022 | 917 | 869 | 916 | 1,087 | ||||||||||||||
Securities gains, net | 3,526 | 3,913 | 1,767 | 3,110 | 4,353 | ||||||||||||||
Impairment loss on securities | — | (769 | ) | — | — | — | |||||||||||||
Gains on sale of loans held for sale | 11,065 | 7,085 | 9,823 | 14,599 | 13,742 | ||||||||||||||
Income on bank owned life insurance | 522 | 644 | 372 | 459 | 524 | ||||||||||||||
Other noninterest income | 1,200 | 1,003 | 924 | 601 | 881 | ||||||||||||||
Total Noninterest Income | 29,578 | 24,381 | 24,980 | 30,661 | 30,663 | ||||||||||||||
Noninterest Expense | |||||||||||||||||||
Salaries and employee benefits | 41,714 | 33,583 | 37,033 | 36,851 | 36,638 | ||||||||||||||
Occupancy | 5,003 | 4,334 | 4,307 | 4,028 | 4,259 | ||||||||||||||
Furniture and equipment | 2,113 | 2,344 | 2,121 | 2,176 | 2,106 | ||||||||||||||
Professional fees | 7,010 | 6,503 | 5,251 | 5,249 | 6,044 | ||||||||||||||
FDIC insurance assessments | 1,168 | 886 | 1,018 | 899 | 956 | ||||||||||||||
Advertising | 1,284 | 1,624 | 1,327 | 1,333 | 1,181 | ||||||||||||||
Intangible assets amortization | 1,895 | 898 | 734 | 715 | 631 | ||||||||||||||
Other real estate and loan collection expenses | 572 | 723 | 496 | 753 | 465 | ||||||||||||||
Loss on sales/valuations of assets, net | 313 | 4,238 | 721 | 1,509 | 353 | ||||||||||||||
Other noninterest expenses | 9,237 | 10,821 | 8,988 | 9,969 | 6,981 | ||||||||||||||
Total Noninterest Expense | 70,309 | 65,954 | 61,996 | 63,482 | 59,614 | ||||||||||||||
Income Before Income Taxes | 29,909 | 18,956 | 19,527 | 19,149 | 23,308 | ||||||||||||||
Income taxes | 9,900 | 4,365 | 4,945 | 3,989 | 7,599 | ||||||||||||||
Net Income | 20,009 | 14,591 | 14,582 | 15,160 | 15,709 | ||||||||||||||
Preferred dividends | (168 | ) | (204 | ) | (205 | ) | (204 | ) | (204 | ) | |||||||||
Net Income Available to Common Stockholders | $ | 19,841 | $ | 14,387 | $ | 14,377 | $ | 14,956 | $ | 15,505 | |||||||||
Earnings per common share-diluted | $ | 0.82 | $ | 0.67 | $ | 0.69 | $ | 0.72 | $ | 0.76 | |||||||||
Weighted average shares outstanding-diluted | 24,117,384 | 21,491,699 | 20,893,312 | 20,877,236 | 20,493,266 |
HEARTLAND FINANCIAL USA, INC. | |||||||||||||||||||
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) | |||||||||||||||||||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | |||||||||||||||||||
As Of | |||||||||||||||||||
3/31/2016 | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | |||||||||||||||
Assets | |||||||||||||||||||
Cash and due from banks | $ | 124,060 | $ | 237,841 | $ | 76,954 | $ | 111,909 | $ | 104,475 | |||||||||
Federal funds sold and other short-term investments | 9,168 | 20,958 | 14,151 | 7,813 | 7,257 | ||||||||||||||
Cash and cash equivalents | 133,228 | 258,799 | 91,105 | 119,722 | 111,732 | ||||||||||||||
Time deposits in other financial institutions | 2,355 | 2,355 | 2,355 | 2,355 | 2,605 | ||||||||||||||
Securities: | |||||||||||||||||||
Available for sale, at fair value | 1,690,516 | 1,578,434 | 1,261,687 | 1,315,699 | 1,353,537 | ||||||||||||||
Held to maturity, at cost | 271,300 | 279,117 | 282,200 | 283,258 | 284,030 | ||||||||||||||
Other investments, at cost | 22,325 | 21,443 | 19,292 | 20,455 | 18,297 | ||||||||||||||
Loans held for sale | 76,565 | 74,783 | 102,569 | 105,898 | 105,670 | ||||||||||||||
Loans and leases: | |||||||||||||||||||
Held to maturity | 5,503,005 | 5,001,486 | 4,642,523 | 4,449,823 | 4,243,689 | ||||||||||||||
Allowance for loan and lease losses | (49,738 | ) | (48,685 | ) | (47,105 | ) | (45,614 | ) | (41,854 | ) | |||||||||
Loans and leases, net | 5,453,267 | 4,952,801 | 4,595,418 | 4,404,209 | 4,201,835 | ||||||||||||||
Premises, furniture and equipment, net | 164,788 | 150,148 | 147,486 | 143,423 | 145,132 | ||||||||||||||
Other real estate, net | 11,338 | 11,524 | 17,041 | 16,983 | 19,097 | ||||||||||||||
Goodwill | 127,699 | 97,852 | 56,828 | 54,162 | 51,073 | ||||||||||||||
Other intangible assets, net | 61,420 | 56,945 | 48,695 | 45,226 | 44,024 | ||||||||||||||
Cash surrender value on life insurance | 110,834 | 110,297 | 99,564 | 96,693 | 95,118 | ||||||||||||||
Other assets | 128,144 | 100,256 | 81,644 | 108,924 | 74,126 | ||||||||||||||
Total Assets | $ | 8,253,779 | $ | 7,694,754 | $ | 6,805,884 | $ | 6,717,007 | $ | 6,506,276 | |||||||||
Liabilities and Equity | |||||||||||||||||||
Liabilities | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Demand | $ | 2,079,521 | $ | 1,914,141 | $ | 1,632,005 | $ | 1,536,355 | $ | 1,515,004 | |||||||||
Savings | 3,702,431 | 3,367,479 | 2,936,611 | 2,816,666 | 2,863,744 | ||||||||||||||
Time | 1,142,368 | 1,124,203 | 938,621 | 964,248 | 887,650 | ||||||||||||||
Total deposits | 6,924,320 | 6,405,823 | 5,507,237 | 5,317,269 | 5,266,398 | ||||||||||||||
Short-term borrowings | 325,741 | 293,898 | 335,845 | 477,918 | 259,335 | ||||||||||||||
Other borrowings | 265,760 | 263,214 | 302,086 | 296,594 | 361,300 | ||||||||||||||
Accrued expenses and other liabilities | 68,415 | 68,646 | 69,707 | 46,020 | 51,896 | ||||||||||||||
Total Liabilities | 7,584,236 | 7,031,581 | 6,214,875 | 6,137,801 | 5,938,929 | ||||||||||||||
Stockholders' Equity | |||||||||||||||||||
Preferred equity | 3,777 | 81,698 | 81,698 | 81,698 | 81,698 | ||||||||||||||
Common stock | 24,520 | 22,436 | 20,640 | 20,616 | 20,586 | ||||||||||||||
Capital surplus | 273,310 | 216,436 | 149,613 | 148,789 | 147,642 | ||||||||||||||
Retained earnings | 366,014 | 348,630 | 337,421 | 325,106 | 312,212 | ||||||||||||||
Accumulated other comprehensive income (loss) | 1,924 | (6,027 | ) | 1,731 | 3,059 | 5,255 | |||||||||||||
Treasury stock at cost | (2 | ) | — | (94 | ) | (62 | ) | (46 | ) | ||||||||||
Total Equity | 669,543 | 663,173 | 591,009 | 579,206 | 567,347 | ||||||||||||||
Total Liabilities and Equity | $ | 8,253,779 | $ | 7,694,754 | $ | 6,805,884 | $ | 6,717,007 | $ | 6,506,276 |
HEARTLAND FINANCIAL USA, INC. | |||||||||||||||||||
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) | |||||||||||||||||||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | |||||||||||||||||||
For the Quarter Ended | |||||||||||||||||||
3/31/2016 | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | |||||||||||||||
Average Balances | |||||||||||||||||||
Assets | $ | 8,025,070 | $ | 7,241,104 | $ | 6,726,196 | $ | 6,625,797 | $ | 6,454,271 | |||||||||
Loans and leases, net of unearned | 5,358,102 | 4,827,844 | 4,654,179 | 4,447,124 | 4,267,593 | ||||||||||||||
Deposits | 6,679,010 | 5,938,905 | 5,423,418 | 5,302,235 | 5,161,782 | ||||||||||||||
Earning assets | 7,276,703 | 6,512,565 | 6,161,495 | 6,069,844 | 5,857,204 | ||||||||||||||
Interest bearing liabilities | 5,273,164 | 4,781,797 | 4,491,089 | 4,451,200 | 4,398,184 | ||||||||||||||
Common stockholders' equity | 629,294 | 533,845 | 500,399 | 489,394 | 463,048 | ||||||||||||||
Total stockholders' equity | 695,771 | 615,543 | 582,097 | 571,092 | 544,746 | ||||||||||||||
Tangible common stockholders' equity | 485,108 | 446,370 | 431,304 | 424,245 | 401,294 | ||||||||||||||
Key Performance Ratios | |||||||||||||||||||
Annualized return on average assets | 0.99 | % | 0.79 | % | 0.85 | % | 0.91 | % | 0.97 | % | |||||||||
Annualized return on average common equity | 12.68 | % | 10.69 | % | 11.40 | % | 12.26 | % | 13.58 | % | |||||||||
Annualized return on average common tangible equity | 16.45 | % | 12.79 | % | 13.22 | % | 14.14 | % | 15.67 | % | |||||||||
Annualized ratio of net charge-offs to average loans and leases | 0.08 | % | 0.05 | % | 0.14 | % | 0.17 | % | 0.12 | % | |||||||||
Annualized net interest margin(1) | 4.19 | % | 3.99 | % | 4.01 | % | 3.97 | % | 3.90 | % | |||||||||
Efficiency ratio, fully taxable equivalent(2) | 66.90 | % | 68.53 | % | 69.85 | % | 67.43 | % | 70.95 | % | |||||||||
(1) Computed on a tax equivalent basis using an effective tax rate of 35%. | |||||||||||||||||||
(2) Refer to the "Non-GAAP Reconciliation-Efficiency Ratio" table that follows for details of this non-GAAP measure. |
HEARTLAND FINANCIAL USA, INC. | |||||||||||||||||||
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) | |||||||||||||||||||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | |||||||||||||||||||
For the Quarter Ended | |||||||||||||||||||
3/31/2016 | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | |||||||||||||||
Reconciliation of Non-GAAP Measure-Efficiency Ratio | |||||||||||||||||||
Net interest income | $ | 72,707 | $ | 62,700 | $ | 59,724 | $ | 57,644 | $ | 53,930 | |||||||||
Taxable equivalent adjustment(1) | 3,041 | 2,827 | 2,588 | 2,408 | 2,393 | ||||||||||||||
Fully taxable equivalent net interest income | 75,748 | 65,527 | 62,312 | 60,052 | 56,323 | ||||||||||||||
Noninterest income | 29,578 | 24,381 | 24,980 | 30,661 | 30,663 | ||||||||||||||
Securities gains, net | (3,526 | ) | (3,913 | ) | (1,767 | ) | (3,110 | ) | (4,353 | ) | |||||||||
Impairment loss on securities | — | 769 | — | — | — | ||||||||||||||
Adjusted income | $ | 101,800 | $ | 86,764 | $ | 85,525 | $ | 87,603 | $ | 82,633 | |||||||||
Total noninterest expenses | $ | 70,309 | $ | 65,954 | $ | 61,996 | $ | 63,482 | $ | 59,614 | |||||||||
Less: | |||||||||||||||||||
Intangible assets amortization | 1,895 | 898 | 734 | 715 | 631 | ||||||||||||||
Partnership investment in historic rehabilitation tax credits | — | 1,362 | 805 | 2,190 | — | ||||||||||||||
Loss on sales/valuation of assets, net | 313 | 4,238 | 721 | 1,509 | 353 | ||||||||||||||
Adjusted noninterest expenses | $ | 68,101 | $ | 59,456 | $ | 59,736 | $ | 59,068 | $ | 58,630 | |||||||||
Efficiency ratio, fully taxable equivalent(2) | 66.90 | % | 68.53 | % | 69.85 | % | 67.43 | % | 70.95 | % | |||||||||
(1) Computed on a tax equivalent basis using an effective tax rate of 35%. | |||||||||||||||||||
(2) Efficiency ratio, fully taxable equivalent, expresses noninterest expenses as a percentage of fully taxable equivalent net interest income and noninterest income. This efficiency ratio is presented on a tax equivalent basis, which adjusts net interest income and noninterest expenses for the tax favored status of certain loans, securities and historic rehabilitation tax credits. Management believes the presentation of this non-GAAP measure provides supplemental useful information for proper understanding of the financial results as it enhances the comparability of income and expenses arising from taxable and nontaxable sources and excludes specific items, such as securities gains, net, impairment loss on securities and losses on sales/valuations of assets, net. This measure should not be considered a substitute for operating results determined in accordance with GAAP. |
HEARTLAND FINANCIAL USA, INC. | |||||||||||||||||||
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) | |||||||||||||||||||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE AND FULL TIME EQUIVALENT EMPLOYEE DATA | |||||||||||||||||||
As of and for the Quarter Ended | |||||||||||||||||||
3/31/2016 | 12/31/2015 | 9/30/15 | 6/30/2015 | 3/31/2015 | |||||||||||||||
Common Share Data | |||||||||||||||||||
Book value per common share | $ | 27.15 | $ | 25.92 | $ | 24.68 | $ | 24.13 | $ | 23.59 | |||||||||
Tangible book value per common share(1) | $ | 20.86 | $ | 20.60 | $ | 21.20 | $ | 20.84 | $ | 20.41 | |||||||||
ASC 320 effect on book value per common share | $ | 0.23 | $ | (0.18 | ) | $ | 0.22 | $ | 0.21 | $ | 0.38 | ||||||||
Common shares outstanding, net of treasury stock | 24,519,928 | 22,435,693 | 20,637,321 | 20,614,325 | 20,585,072 | ||||||||||||||
Tangible capital ratio(2) | 6.32 | % | 6.10 | % | 6.50 | % | 6.46 | % | 6.52 | % | |||||||||
Loan and Lease Data | |||||||||||||||||||
Loans held to maturity: | |||||||||||||||||||
Commercial and commercial real estate | $ | 3,850,772 | $ | 3,605,574 | $ | 3,303,098 | $ | 3,199,717 | $ | 3,067,315 | |||||||||
Residential mortgage | 753,666 | 539,555 | 491,667 | 443,026 | 413,938 | ||||||||||||||
Agricultural and agricultural real estate | 471,271 | 471,870 | 469,381 | 444,110 | 411,732 | ||||||||||||||
Consumer | 430,699 | 386,867 | 379,903 | 364,441 | 351,981 | ||||||||||||||
Unearned discount and deferred loan fees | (3,403 | ) | (2,380 | ) | (1,526 | ) | (1,471 | ) | (1,277 | ) | |||||||||
Total loans and leases held to maturity | $ | 5,503,005 | $ | 5,001,486 | $ | 4,642,523 | $ | 4,449,823 | $ | 4,243,689 | |||||||||
Other Selected Trend Information | |||||||||||||||||||
Effective tax rate | 33.10 | % | 23.03 | % | 25.32 | % | 20.83 | % | 32.60 | % | |||||||||
Full time equivalent employees | 1,907 | 1,799 | 1,736 | 1,788 | 1,776 | ||||||||||||||
Total Residential Mortgage Loan Applications | $ | 406,999 | $ | 307,163 | $ | 443,294 | $ | 615,463 | $ | 647,487 | |||||||||
Residential Mortgage Loans Originated | $ | 238,266 | $ | 258,939 | $ | 370,956 | $ | 421,798 | $ | 319,581 | |||||||||
Residential Mortgage Loans Sold | $ | 220,381 | $ | 260,189 | $ | 360,172 | $ | 402,151 | $ | 268,786 | |||||||||
Residential Mortgage Loan Servicing Portfolio | $ | 4,112,519 | $ | 4,057,861 | $ | 3,963,677 | $ | 3,785,794 | $ | 3,578,409 | |||||||||
(1) Total common stockholders' equity less goodwill and intangible assets (excluding servicing rights) divided by common shares outstanding, net of treasury. This is a non-GAAP financial measure but has been included as it is considered to be a critical metric with which to analyze and evaluate financial condition and capital strength. | |||||||||||||||||||
(2) Total common stockholders' equity less goodwill and intangible assets (excluding servicing rights) divided by total assets less intangible assets (excluding mortgage servicing rights). This is a non-GAAP financial measure but has been included as it is considered to be a critical metric with which to analyze and evaluate financial condition and capital strength. |
HEARTLAND FINANCIAL USA, INC. | |||||||||||||||||||
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) | |||||||||||||||||||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | |||||||||||||||||||
As of and for the Quarter Ended | |||||||||||||||||||
3/31/2016 | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | |||||||||||||||
Allowance for Loan and Lease Losses | |||||||||||||||||||
Balance, beginning of period | $ | 48,685 | $ | 47,105 | $ | 45,614 | $ | 41,854 | $ | 41,449 | |||||||||
Provision for loan and lease losses | 2,067 | 2,171 | 3,181 | 5,674 | 1,671 | ||||||||||||||
Charge-offs | (1,605 | ) | (1,837 | ) | (2,439 | ) | (2,734 | ) | (2,004 | ) | |||||||||
Recoveries | 591 | 1,246 | 749 | 820 | 738 | ||||||||||||||
Balance, end of period | $ | 49,738 | $ | 48,685 | $ | 47,105 | $ | 45,614 | $ | 41,854 | |||||||||
Asset Quality | |||||||||||||||||||
Nonaccrual loans | $ | 47,750 | $ | 39,655 | $ | 32,577 | $ | 26,710 | $ | 27,023 | |||||||||
Loans and leases past due ninety days or more as to interest or principal payments | 639 | — | 1,181 | — | 9 | ||||||||||||||
Other real estate owned | 11,338 | 11,524 | 17,041 | 16,983 | 19,097 | ||||||||||||||
Other repossessed assets | 426 | 485 | 626 | 544 | 404 | ||||||||||||||
Total nonperforming assets | $ | 60,153 | $ | 51,664 | $ | 51,425 | $ | 44,237 | $ | 46,533 | |||||||||
Performing troubled debt restructured loans | $ | 10,711 | $ | 10,968 | $ | 10,154 | $ | 10,903 | $ | 10,904 | |||||||||
Nonperforming Assets Activity | |||||||||||||||||||
Balance, beginning of period | $ | 51,664 | $ | 51,425 | $ | 44,237 | $ | 46,533 | $ | 44,809 | |||||||||
Net loan charge offs | (1,014 | ) | (591 | ) | (1,690 | ) | (1,914 | ) | (1,266 | ) | |||||||||
New nonperforming loans | 12,171 | 9,686 | 7,996 | 4,676 | 4,059 | ||||||||||||||
Acquired nonperforming assets | 3,516 | 4,956 | 5,328 | — | 6,101 | ||||||||||||||
Reduction of nonperforming loans(1) | (3,563 | ) | (6,768 | ) | (2,758 | ) | (1,409 | ) | (4,493 | ) | |||||||||
OREO/Repossessed assets sales proceeds | (2,411 | ) | (2,980 | ) | (1,074 | ) | (3,202 | ) | (2,312 | ) | |||||||||
OREO/Repossessed assets writedowns, net | (182 | ) | (3,909 | ) | (756 | ) | (565 | ) | (319 | ) | |||||||||
Net activity at Citizens Finance Co. | (28 | ) | (155 | ) | 142 | 118 | (46 | ) | |||||||||||
Balance, end of period | $ | 60,153 | $ | 51,664 | $ | 51,425 | $ | 44,237 | $ | 46,533 | |||||||||
Asset Quality Ratios | |||||||||||||||||||
Ratio of nonperforming loans and leases to total loans and leases | 0.88 | % | 0.79 | % | 0.73 | % | 0.60 | % | 0.64 | % | |||||||||
Ratio of nonperforming assets to total assets | 0.73 | % | 0.67 | % | 0.76 | % | 0.66 | % | 0.72 | % | |||||||||
Annualized ratio of net loan charge-offs to average loans and leases | 0.08 | % | 0.05 | % | 0.14 | % | 0.17 | % | 0.12 | % | |||||||||
Allowance for loan and lease losses as a percent of loans and leases | 0.90 | % | 0.97 | % | 1.01 | % | 1.03 | % | 0.99 | % | |||||||||
Allowance for loan and lease losses as a percent of nonperforming loans and leases | 102.79 | % | 122.77 | % | 139.54 | % | 170.78 | % | 154.83 | % | |||||||||
Loans delinquent 30-89 days as a percent of total loans | 0.45 | % | 0.31 | % | 0.40 | % | 0.31 | % | 0.42 | % | |||||||||
(1) Includes principal reductions and transfers to performing status |
HEARTLAND FINANCIAL USA, INC. | |||||||||||||||||||||
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) | |||||||||||||||||||||
DOLLARS IN THOUSANDS | |||||||||||||||||||||
For the Quarter Ended | |||||||||||||||||||||
March 31, 2016 | March 31, 2015 | ||||||||||||||||||||
Average Balance | Interest | Rate | Average Balance | Interest | Rate | ||||||||||||||||
Earning Assets | |||||||||||||||||||||
Securities: | |||||||||||||||||||||
Taxable | $ | 1,508,432 | $ | 8,735 | 2.33 | % | $ | 1,283,509 | $ | 7,132 | 2.25 | % | |||||||||
Nontaxable(1) | 417,224 | 5,400 | 5.21 | 331,339 | 4,486 | 5.49 | |||||||||||||||
Total securities | 1,925,656 | 14,135 | 2.95 | 1,614,848 | 11,618 | 2.92 | |||||||||||||||
Interest bearing deposits | 11,634 | 4 | 0.14 | 9,194 | 4 | 0.18 | |||||||||||||||
Federal funds sold | 31,126 | 10 | 0.13 | 7,617 | 1 | 0.05 | |||||||||||||||
Loans and leases:(2) | |||||||||||||||||||||
Commercial and commercial real estate(1) | 3,743,940 | 46,754 | 5.02 | 3,023,204 | 35,875 | 4.81 | |||||||||||||||
Residential mortgage | 734,134 | 7,599 | 4.16 | 478,948 | 4,883 | 4.13 | |||||||||||||||
Agricultural and agricultural real estate(1) | 467,978 | 5,729 | 4.92 | 418,251 | 5,030 | 4.88 | |||||||||||||||
Consumer | 412,050 | 7,923 | 7.73 | 347,190 | 6,888 | 8.05 | |||||||||||||||
Fees on loans | 1,571 | — | — | 1,196 | — | ||||||||||||||||
Less: allowance for loan and lease losses | (49,815 | ) | — | — | (42,048 | ) | — | — | |||||||||||||
Net loans and leases | 5,308,287 | 69,576 | 5.27 | 4,225,545 | 53,872 | 5.17 | |||||||||||||||
Total earning assets | 7,276,703 | 83,725 | 4.63 | % | 5,857,204 | 65,495 | 4.53 | % | |||||||||||||
Nonearning Assets | 748,367 | 597,067 | |||||||||||||||||||
Total Assets | $ | 8,025,070 | $ | 6,454,271 | |||||||||||||||||
Interest Bearing Liabilities | |||||||||||||||||||||
Savings | $ | 3,556,207 | $ | 1,894 | 0.21 | % | $ | 2,830,961 | $ | 1,795 | 0.26 | % | |||||||||
Time, $100,000 and over | 498,620 | 871 | 0.70 | 344,360 | 838 | 0.99 | |||||||||||||||
Other time deposits | 642,301 | 1,408 | 0.88 | 536,170 | 1,539 | 1.16 | |||||||||||||||
Short-term borrowings | 311,161 | 329 | 0.43 | 294,756 | 198 | 0.27 | |||||||||||||||
Other borrowings | 264,875 | 3,475 | 5.28 | 391,937 | 4,802 | 4.97 | |||||||||||||||
Total interest bearing liabilities | 5,273,164 | 7,977 | 0.61 | % | 4,398,184 | 9,172 | 0.85 | % | |||||||||||||
Noninterest Bearing Liabilities | |||||||||||||||||||||
Noninterest bearing deposits | 1,981,882 | 1,450,291 | |||||||||||||||||||
Accrued interest and other liabilities | 74,253 | 61,050 | |||||||||||||||||||
Total noninterest bearing liabilities | 2,056,135 | 1,511,341 | |||||||||||||||||||
Stockholders' Equity | 695,771 | 544,746 | |||||||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 8,025,070 | $ | 6,454,271 | |||||||||||||||||
Net interest income(1) | $ | 75,748 | $ | 56,323 | |||||||||||||||||
Net interest spread(1) | 4.02 | % | 3.68 | % | |||||||||||||||||
Net interest income to total earning assets(1) | 4.19 | % | 3.90 | % | |||||||||||||||||
Interest bearing liabilities to earning assets | 72.47 | % | 75.09 | % | |||||||||||||||||
(1) Computed on a tax equivalent basis using an effective tax rate of 35% | |||||||||||||||||||||
(2) Nonaccrual loans are included in the average loans outstanding. |
HEARTLAND FINANCIAL USA, INC. | |||||||||||||||
SELECTED FINANCIAL DATA - SUBSIDIARY BANKS (Unaudited) | |||||||||||||||
DOLLARS IN THOUSANDS | |||||||||||||||
As of and For the Quarter Ended | |||||||||||||||
3/31/2016 | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | |||||||||||
Total Assets | |||||||||||||||
Dubuque Bank and Trust Company | $ | 1,498,771 | $ | 1,617,322 | $ | 1,431,767 | $ | 1,541,610 | $ | 1,413,772 | |||||
New Mexico Bank & Trust | 1,304,886 | 1,336,004 | 1,282,784 | 1,141,575 | 1,113,031 | ||||||||||
Wisconsin Bank & Trust | 1,094,872 | 1,139,337 | 1,098,405 | 1,150,867 | 1,128,104 | ||||||||||
Centennial Bank and Trust(1) | 927,040 | 161,806 | 155,114 | 152,672 | 140,868 | ||||||||||
Morrill & Janes Bank and Trust Company | 872,274 | 902,918 | 845,067 | 860,781 | 888,321 | ||||||||||
Premier Valley Bank | 751,137 | 765,451 | — | — | — | ||||||||||
Illinois Bank & Trust | 718,074 | 757,478 | 769,170 | 784,162 | 748,937 | ||||||||||
Arizona Bank & Trust | 558,369 | 591,066 | 599,119 | 510,838 | 487,059 | ||||||||||
Rocky Mountain Bank | 479,010 | 491,522 | 501,093 | 508,262 | 477,799 | ||||||||||
Minnesota Bank & Trust | 220,955 | 214,303 | 188,633 | 195,201 | 169,254 | ||||||||||
Total Portfolio Loans | |||||||||||||||
Dubuque Bank and Trust Company | $ | 941,683 | $ | 956,517 | $ | 953,273 | $ | 945,574 | $ | 907,956 | |||||
New Mexico Bank & Trust | 815,739 | 794,744 | 777,433 | 658,543 | 635,843 | ||||||||||
Wisconsin Bank & Trust | 758,789 | 793,508 | 844,557 | 876,321 | 865,323 | ||||||||||
Centennial Bank and Trust(1) | 683,085 | 101,449 | 94,127 | 95,275 | 87,913 | ||||||||||
Morrill & Janes Bank and Trust Company | 536,738 | 539,198 | 527,217 | 520,978 | 475,295 | ||||||||||
Premier Valley Bank | 376,840 | 383,929 | — | — | — | ||||||||||
Illinois Bank & Trust | 465,783 | 465,937 | 473,859 | 455,247 | 439,757 | ||||||||||
Arizona Bank & Trust | 402,431 | 444,501 | 444,916 | 383,588 | 355,986 | ||||||||||
Rocky Mountain Bank | 364,189 | 370,440 | 380,304 | 375,860 | 343,008 | ||||||||||
Minnesota Bank & Trust | 137,412 | 134,137 | 128,700 | 127,172 | 114,477 | ||||||||||
Total Deposits | |||||||||||||||
Dubuque Bank and Trust Company | $ | 1,144,470 | $ | 1,209,074 | $ | 1,120,999 | $ | 1,144,932 | $ | 1,166,070 | |||||
New Mexico Bank & Trust | 1,066,076 | 1,085,052 | 1,047,358 | 891,003 | 880,422 | ||||||||||
Wisconsin Bank & Trust | 921,071 | 974,001 | 904,803 | 985,804 | 939,157 | ||||||||||
Centennial Bank and Trust(1) | 779,607 | 128,759 | 139,826 | 122,928 | 124,113 | ||||||||||
Morrill & Janes Bank and Trust Company | 698,365 | 713,589 | 650,123 | 662,524 | 696,606 | ||||||||||
Premier Valley Bank | 635,188 | 647,022 | — | — | — | ||||||||||
Illinois Bank & Trust | 629,235 | 631,010 | 641,024 | 645,354 | 625,885 | ||||||||||
Arizona Bank & Trust | 468,312 | 500,490 | 491,254 | 405,680 | 378,422 | ||||||||||
Rocky Mountain Bank | 409,787 | 417,426 | 428,234 | 417,647 | 407,958 | ||||||||||
Minnesota Bank & Trust | 200,343 | 194,373 | 163,291 | 172,547 | 148,773 | ||||||||||
Net Income (Loss) | |||||||||||||||
Dubuque Bank and Trust Company | $ | 6,073 | $ | 3,587 | $ | 4,477 | $ | 7,416 | $ | 6,016 | |||||
New Mexico Bank & Trust | 4,094 | 2,576 | 3,220 | 3,658 | 4,164 | ||||||||||
Wisconsin Bank & Trust | 3,379 | 2,443 | 3,886 | 2,950 | 2,181 | ||||||||||
Centennial Bank and Trust(1) | 824 | 62 | (6 | ) | (81 | ) | 305 | ||||||||
Morrill & Janes Bank and Trust Company | 2,525 | 1,096 | 2,024 | 1,566 | 1,656 | ||||||||||
Premier Valley Bank | 1,960 | 1,008 | — | — | — | ||||||||||
Illinois Bank & Trust | 2,027 | 574 | 1,877 | 1,309 | 2,482 | ||||||||||
Arizona Bank & Trust | 1,841 | 968 | 1,254 | 998 | 677 | ||||||||||
Rocky Mountain Bank | 1,064 | 1,506 | 1,471 | 1,196 | 1,156 | ||||||||||
Minnesota Bank & Trust | 531 | 166 | 411 | 223 | 162 | ||||||||||
(1) Formerly known as Summit Bank & Trust. |
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