Parent Company Only Financial Information (Tables)

12 Months Ended

Dec. 31, 2018

Condensed Financial Information Disclosure [Abstract]

Schedule of Condensed Balance Sheets

Condensed financial information for Heartland Financial USA, Inc. is as follows:

BALANCE SHEETS
(Dollars in thousands)
	December 31,
	2018			2017
Assets:
Cash and interest bearing deposits	$	39,666		$	24,310
Investment in subsidiaries	1,538,766			1,194,747
Other assets	30,321			28,536
Due from subsidiaries	6,000			6,000
Total assets	$	1,614,753		$	1,253,593
Liabilities and stockholders’ equity:
Other borrowings	$	269,553		$	246,438
Accrued expenses and other liabilities	20,025			15,698
Total liabilities	289,578			262,136
Stockholders’ equity:
Preferred stock	—			938
Common stock	34,477			29,953
Capital surplus	743,095			503,709
Retained earnings	579,252			481,331
Accumulated other comprehensive loss	(31,649		)	(24,474		)
Total stockholders’ equity	1,325,175			991,457
Total liabilities and stockholders’ equity	$	1,614,753		$	1,253,593

Schedule of Condensed Income Statements

INCOME STATEMENTS
(Dollars in thousands)
	For the Years Ended December 31,
	2018			2017			2016
Operating revenues:
Dividends from subsidiaries	$	85,000		$	70,850		$	55,250
Securities gains, net	—			3,021			54
Other	493			2,292			1,712
Total operating revenues	85,493			76,163			57,016
Operating expenses:
Interest	14,371			13,269			13,840
Salaries and employee benefits	3,639			3,146			3,044
Professional fees	2,841			2,379			2,487
Other operating expenses	12,510			7,889			2,664
Total operating expenses	33,361			26,683			22,035
Equity in undistributed earnings	52,570			16,212			37,926
Income before income tax benefit	104,702			65,692			72,907
Income tax benefit	12,296			9,580			7,442
Net income	116,998			75,272			80,349
Preferred dividends	(39		)	(58		)	(292		)
Interest expense on convertible preferred debt	—			12			51
Net income available to common stockholders	$	116,959		$	75,226		$	80,108

Schedule of Condensed Statements of Cash Flows

STATEMENTS OF CASH FLOWS
(Dollars in thousands)
	For the Years Ended December 31,
	2018			2017			2016
Cash flows from operating activities:
Net income	$	116,998		$	75,272		$	80,349
Adjustments to reconcile net income to net cash provided  by operating activities:
Undistributed earnings of subsidiaries	(52,570		)	(16,212		)	(37,926		)
Security gains, net	—			(3,021		)	(54		)
Gain on extinguishment of debt	—			(1,200		)	—
Increase (decrease) in accrued expenses and other liabilities	5,336			(4,160		)	(7,039		)
(Increase) decrease in other assets	(1,559		)	(567		)	1,948
Excess tax benefits from stock based compensation	674			1,246			374
Other, net	5,401			4,714			4,892
Net cash provided by operating activities	74,280			56,072			42,544
Cash flows from investing activities:
Capital contributions to subsidiaries	(30,696		)	—			(18,000		)
Proceeds from sales of available for sale securities	—			2,868			—
Proceeds from sale of other investments	—			211			94
Net assets acquired	(13,504		)	(62,813		)	(14,587		)
Net cash used by investing activities	(44,200		)	(59,734		)	(32,493		)
Cash flows from financing activities:
Proceeds on short-term revolving credit line	25,000			20,000			—
Proceeds from borrowings	30,000			—			40,000
Repayments on short-term revolving credit line	(25,000		)	(20,000		)	—
Repayments of borrowings	(25,759		)	(9,016		)	(26,280		)
Payment for the redemption of debt	—			(13,800		)	—
Redemption of preferred stock	—			—			(81,698		)
Cash dividends paid	(19,357		)	(14,557		)	(12,870		)
Purchase of treasury stock	(97		)	(625		)	(3,719		)
Proceeds from issuance of common stock	489			963			54,196
Net cash used by financing activities	(14,724		)	(37,035		)	(30,371		)
Net increase (decrease) in cash and cash equivalents	15,356			(40,697		)	(20,320		)
Cash and cash equivalents at beginning of year	24,310			65,007			85,327
Cash and cash equivalents at end of year	$	39,666		$	24,310		$	65,007
Supplemental disclosure:
Conversion of convertible debt to common stock	$	—		$	558		$	1,442
Conversion/redemption of Series D preferred stock to common stock	$	938		$	419		$	2,420
Stock consideration granted for acquisition	$	238,075		$	175,196		$	57,433