EX-99.1 2 ex991q22021pressrelease.htm EX-99.1 Document

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CONTACT:FOR IMMEDIATE RELEASE
Bryan R. McKeagJuly 26, 2021
Executive Vice President
Chief Financial Officer
(563) 589-1994
BMcKeag@htlf.com

HEARTLAND FINANCIAL USA, INC. ("HTLF") REPORTS RECORD QUARTERLY AND YEAR TO DATE RESULTS AS OF JUNE 30, 2021

Highlights and Developments
§Net income available to common stockholders of $59.6 million compared to $30.1 million for the second quarter of 2020, an increase of $29.5 million or 98%
§Net income available to common stockholders of $110.4 million compared to $50.2 million for the six months ended June 30, 2020, an increase of $60.2 million or 120%
§Diluted earnings per common share of $1.41 compared to $0.82 for the second quarter of the prior year, an increase of $0.59 or 72%
§Quarterly loan growth was $287.7 million or 13% annualized, exclusive of Paycheck Protection Program ("PPP") loans
§Non-time deposit growth of $133.3 million or 1% for the second quarter of 2021 and $780.0 million or 6% for the six months ended June 30, 2021
§Annualized net charge off ratio of 0.12%, nonperforming assets to total assets of 0.50%, and 30-89 day loan delinquencies of 0.17%
§Announced a 14% increase in the regular quarterly dividend to $0.25 per common share
Quarter Ended
June 30,		Six Months Ended June 30,
2021202020212020
Net income available to common stockholders (in millions)$59.6 $30.1 $110.4 $50.2 
Diluted earnings per common share1.41 0.82 2.61 1.36 
Return on average assets1.35 %0.84 %1.27 %0.73 %
Return on average common equity12.07 7.69 11.29 6.32 
Return on average tangible common equity (non-GAAP)(1)
18.05 11.97 16.99 9.95 
Net interest margin3.37 3.81 3.40 3.81 
Net interest margin, fully tax-equivalent (non-GAAP)(1)
3.41 3.85 3.45 3.85 
Efficiency ratio, fully-tax equivalent (non-GAAP)(1)
57.11 55.75 56.86 58.64 
(1) Refer to "Non-GAAP Measures" in this earnings release for additional information on the usage and presentation of these non-GAAP measures, and refer to the financial tables for reconciliations to the most directly comparable GAAP measures.

"HTLF's second quarter 2021 financial performance was strong. Net income available to common stockholders totaled $59.6 million, which was a 98% increase over the same quarter last year. Loan growth, excluding PPP loans, non-time deposit growth and improved credit quality all contributed to our success this quarter."
Bruce K. Lee, president and chief executive officer, HTLF


Dubuque, Iowa, Monday, July 26, 2021-Heartland Financial USA, Inc. (NASDAQ: HTLF) today reported the following results for the quarter ended June 30, 2021 compared to the quarter ended June 30, 2020:
•Net income available to common stockholders of $59.6 million compared to $30.1 million, an increase of $29.5 million or 98%.
•Earnings per diluted common share of $1.41 compared to $0.82, an increase of $0.59 or 72%.
•Net interest income of $141.2 million compared to $124.1 million, an increase of $17.1 million or 14%.
•Return on average common equity was 12.07% and return on average assets was 1.35% compared to 7.69% and 0.84%.
•Return on average tangible common equity (non-GAAP) was 18.05% compared to 11.97%.

HTLF report the following results for the six months ended June 30, 2021 compared to the six months ended June 30, 2020:
•Net income available to common stockholders of $110.4 million compared to $50.2 million, an increase of $60.2 million or 120%.
•Earnings per diluted common share of $2.61 compared to $1.36, an increase of $1.25 or 92%
•Net interest income of $280.8 million compared to $236.7 million, an increase of $44.2 million or 19%.
•Return on average common equity was 11.29% and return on average assets was 1.27% compared to 6.32% and 0.73%.
•Return on average tangible common equity (non-GAAP) was 16.99% compared to 9.95%.

"HTLF's second quarter 2021 financial performance was strong. Net income available to common stockholders totaled $59.6 million, which was a 98% increase over the same quarter last year. Loan growth, excluding PPP loans, non-time deposit growth and improved credit quality also contributed to our success this quarter," said Bruce K. Lee, president and chief executive officer of HTLF.

Net Interest Income and Net Interest Margin

Net interest margin, expressed as a percentage of average earning assets, was 3.37% (3.41% on a fully tax-equivalent basis, non-GAAP) during the second quarter of 2021, compared to 3.44% (3.48% on a fully tax-equivalent basis, non-GAAP) during the first quarter of 2021 and 3.81% (3.85% on a fully tax-equivalent basis, non-GAAP) during the second quarter of 2020.

Total interest income and average earning asset changes for the second quarter of 2021 compared to the second quarter of 2020 were:
•Total interest income was $148.1 million, which was an increase of $14.3 million or 11% from $133.8 million and primarily attributable to an increase in average earning assets partially offset by lower yields.
•Total interest income on a tax-equivalent basis (non-GAAP) was $149.8 million, which was an increase of $14.7 million or 11% from $135.2 million.
•Average earning assets increased $3.72 billion or 28% to $16.82 billion compared to $13.10 billion, which was primarily attributable to recent acquisitions and loan growth, including PPP loans.
•The average rate on earning assets decreased 58 basis points to 3.57% compared to 4.15%, which was primarily due to recent decreases in market interest rates and a shift in earning asset mix. Total average securities were 39% of total earning average assets compared to 29%.

Total interest expense and average interest bearing liability changes for the second quarter of 2021 compared to the second quarter of 2020 were:
•Total interest expense was $6.9 million, a decrease of $2.8 million or 29% from $9.6 million, based on a decrease in the average interest rate paid, which was partially offset by an increase in average interest bearing liabilities.
•The average interest rate paid on interest bearing liabilities decreased to 0.28% compared to 0.47%, which was primarily due to recent decreases in market interest rates.
•Average interest bearing deposits increased $1.62 billion or 21% to $9.41 billion from $7.79 billion which was primarily attributable to recent acquisitions and deposit growth, including deposits related to government stimulus payments and other COVID-19 relief programs.


•The average interest rate paid on interest bearing deposits decreased 16 basis points to 0.16% compared to 0.32%.
•Average borrowings increased $97.0 million or 26% to $465.9 million from $368.9 million, which was primarily attributable to outstanding advances from the PPP lending fund used to fund PPP loans to borrowers. The average interest rate paid on borrowings was 2.65% compared to 3.80%.

Net interest income increased for the second quarter of 2021 compared to the second quarter of 2020:
•Net interest income totaled $141.2 million compared to $124.1 million, which was an increase of $17.1 million or 14%.
•Net interest income on a tax-equivalent basis (non-GAAP) totaled $143.0 million compared to $125.6 million, which was an increase of $17.4 million or 14%.

Noninterest Income and Noninterest Expense

Total noninterest income was $33.2 million during the second quarter of 2021 compared to $30.6 million during the second quarter of 2020, an increase of $2.5 million or 8%. Significant changes within the noninterest income category for the second quarter of 2021 compared to the second quarter of 2020 were:
•Service charges and fees increased $4.2 million or 38% to $15.1 million from $11.0 million. Service charges and fees on retail and small business accounts increased $2.5 million to $7.3 million from $4.9 million. During the second quarter of 2020, HTLF was waiving service charges and fees due to the COVID-19 pandemic.
•Trust fees increased $1.1 million or 21% to $6.0 million from $5.0 million. The increase was primarily attributable to an increase in market value of trust assets under management.
•Net gains on sales of loans held for sale totaled $4.8 million compared to $7.9 million, which was a decrease of $3.1 million or 40% and was primarily attributable to a decrease of loans sold to the secondary market.
Total noninterest expense was $103.4 million during the second quarter of 2021 compared to $90.4 million during the second quarter of 2020, which was an increase of $12.9 million or 14%. Significant changes within the noninterest expense category for the second quarter of 2021 compared to the second quarter of 2020 were:
•Salaries and employee benefits totaled $57.3 million compared to $50.1 million, which was an increase of $7.2 million or 14%. Full-time equivalent employees increased 270 to 2,091 compared to 1,821 which was primarily attributable to the acquisitions completed in the fourth quarter of 2020.
•Professional fees increased $2.6 million or 19% to $16.2 million compared to $13.7 million, which was primarily attributable to utilization of specialized resources to support automation and technology projects, including the customer service call center.
•Other noninterest expenses increased $1.6 million or 14% to $12.7 million compared to $11.1 million. The increase was primarily attributable to the acquisitions completed in the fourth quarter of 2020.

The effective tax rate was 21.11% for the second quarter of 2021 compared to 19.75% for the second quarter of 2020. The following items impacted the second quarter 2021 and 2020 tax calculations:
•Solar energy tax credits of $1.3 million compared to $798,000.
•Federal low-income housing tax credits of $135,000 compared to $195,000.
•New markets tax credits of $75,000 in each quarterly calculation.
•Historic rehabilitation tax credits of $123,000 compared to $0.
•Tax-exempt interest income as a percentage of pre-tax income of 8.49% compared to 14.19%.
•Tax benefit of $150,000 compared to tax expense of $66,000 resulting from the vesting of restricted stock unit awards.

Total Assets, Total Loans and Total Deposits

Total assets were $18.37 billion at June 30, 2021, an increase of $462.7 million or 3% from $17.91 billion at year-end 2020. Securities represented 37% and 35% of total assets at June 30, 2021, and December 31, 2020, respectively.



Total loans held to maturity were $10.01 billion at June 30, 2021, $10.05 billion at March 31, 2021, and $10.02 billion at December 31, 2020. Excluding total PPP loans, loans increased $287.7 million or 13% annualized during the second quarter of 2021 and $117.6 million or 2.6% annualized since year-end 2020.

Significant changes by loan category at June 30, 2021 compared to March 31, 2021 included:
•Commercial and business lending, which includes commercial and industrial, PPP and owner occupied commercial real estate loans, decreased $125.9 million or 2% to $5.29 billion compared to $5.41 billion.
•PPP loans originated in 2020 ("PPP I") decreased $365.4 million or 49%. PPP loans originated in 2021 ("PPP II") increased $39.2 million or 9%.
•Excluding total PPP loans, commercial and business lending increased $200.2 million or 5% to $4.46 billion from $4.29 billion.
•Commercial real estate lending, which includes non-owner occupied commercial real estate and construction loans, increased $78.5 million or 3% to $2.84 billion compared to $2.76 billion.

Significant changes by loan category at June 30, 2021 compared to December 31, 2020, included:
•Commercial and business lending, which includes commercial and industrial, PPP and owner occupied commercial real estate loans, increased $19.2 million or less than 1%, to $5.29 billion compared to $5.27 billion.
•PPP I loans decreased $583.6 million or 61%. PPP II loans totaled $455.0 million.
•Excluding total PPP loans, commercial and business lending increased $147.8 million or 3% to $4.46 billion from $4.31 billion.
•Commercial real estate lending, which includes non-owner occupied commercial real estate and construction loans, increased $57.0 million or 2% to $2.84 billion compared to $2.78 billion.
•Residential mortgage loans decreased $39.5 million or 5% to $800.9 million compared to $840.4 million.
•Agriculture and agricultural real estate loans decreased $34.9 million or 5% to $679.6 million compared to $714.5 million.

Total deposits were $15.62 billion as of June 30, 2021, $15.56 billion as of March 31, 2021 and $14.98 billion at year-end 2020. Significant deposit changes by category at June 30, 2021 compared to March 31, 2021 included:
•Demand deposits increased $123.3 million or 2% to $6.30 billion compared to $6.18 billion.
•Time deposits decreased $77.2 million or 6% to $1.13 billion from $1.20 billion.

Significant deposit changes by category at June 30, 2021 compared to December 31, 2020 included:
•Demand deposits increased $610.5 million or 11% to $6.30 billion compared to $5.69 billion.
•Time deposits decreased $144.8 million or 11% to $1.13 billion from $1.27 billion.

Growth in demand deposits during the second quarter and first six months of 2021 was positively impacted by payments related to federal government stimulus programs and other COVID-19 relief programs.

Provision and Allowance

Provision and Allowance for Credit Losses for Loans
Provision benefit for credit losses for loans for the second quarter of 2021 was $6.5 million, which was a decrease of $31.5 million from provision expense of $25.0 million recorded in the second quarter of 2020. The provision benefit for the second quarter of 2021 was impacted by several factors, including:
•increases in balances of loans held to maturity of $287.7 million during the second quarter, excluding total PPP loans;
•modest improvements in credit quality marked by a decrease in nonperforming loans of $6.5 million to $85.4 million and nonpass loans of 10.37% of total loans for the second quarter compared to nonperforming loans of $91.9 million and nonpass loans of 11.47% of total loans at March 31, 2021, and
•improved macroeconomic factors compared to previous quarters.

The allowance for credit losses for loans totaled $120.7 million and $131.6 million at June 30, 2021, and December 31, 2020, respectively. The following items have impacted the allowance for credit losses for loans for the six months ended June 30, 2021:


•Provision benefit for the six months ended June 30, 2021, totaled $6.5 million.
•Net charge offs of $4.4 million were recorded for the first six months of 2021.

Provision and Allowance for Credit Losses for Unfunded Commitments
The allowance for unfunded commitments totaled $14.0 million at June 30, 2021, which was a decrease of $1.3 million from $15.3 million at December 31, 2020. Unfunded commitments increased $186.1 million to $3.43 billion at June 30, 2021 compared to $3.25 billion at December 31, 2020.

Total Provision and Allowance for Lending Related Credit Losses
The total provision benefit for lending related credit losses was $7.1 million for the second quarter of 2021 compared to provision expense of $26.9 million for the second quarter of 2020. The total allowance for lending related credit losses was $134.7 million at June 30, 2021, which was 1.35% of total loans as of June 30, 2021, compared to $146.9 million or 1.47% of total loans as of December 31, 2020. Excluding PPP loans, the allowance for lending related credit losses as a percentage of total loans was 1.47% and 1.62% as of June 30, 2021, and December 31, 2020, respectively.

Nonperforming Assets

Nonperforming assets decreased $3.2 million or 3% to $91.7 million or 0.50% of total assets at June 30, 2021, compared to $95.0 million or 0.53% of total assets at December 31, 2020. Nonperforming loans were $85.4 million or 0.85% of total loans at June 30, 2021, compared to $88.1 million or 0.88% of total loans at December 31, 2020. At June 30, 2021, loans delinquent 30-89 days were 0.17% of total loans compared to 0.23% of total loans at December 31, 2020.

Non-GAAP Financial Measures
This earnings release contains references to financial measures which are not defined by generally accepted accounting principles ("GAAP"). Management believes the non-GAAP measures are helpful for investors to analyze and evaluate the company's financial condition and operating results. However, these non-GAAP measures have inherent limitations and should not be considered a substitute for operating results determined in accordance with GAAP. Additionally, because non-GAAP measures are not standardized, it may not be possible to compare the non-GAAP measures in this earnings release with other companies' non-GAAP measures. Reconciliations of each non-GAAP measure to the most directly comparable GAAP measure may be found in the financial tables in this earnings release.

Below are the non-GAAP measures included in this earnings release, management's reason for including each measure and the method of calculating each measure:
•Annualized net interest margin, fully tax-equivalent, adjusts net interest income for the tax-favored status of certain loans and securities. Management believes this measure enhances the comparability of net interest income arising from taxable and tax-exempt sources.
•Efficiency ratio, fully tax equivalent, expresses noninterest expenses as a percentage of fully tax-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 tax credit projects. 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 as noted in reconciliation contained in this earnings release.
•Net interest income, fully tax equivalent, is net income adjusted for the tax-favored status of certain loans and securities. Management believes this measure enhances the comparability of net interest income arising from taxable and tax-exempt sources.
•Tangible book value per common share is total common equity less goodwill and core deposit and customer relationship intangibles, net, divided by common shares outstanding, net of treasury. This measure is included as it is considered to be a critical metric to analyze and evaluate use of equity, financial condition and capital strength.
•Tangible common equity ratio is total common equity less goodwill and core deposit and customer relationship intangibles, net, divided by total assets less goodwill and core deposit and customer relationship intangibles, net. This measure is included as it is considered to be a critical metric to analyze and evaluate financial condition and capital strength.


•Annualized return on average tangible common equity is net income excluding intangible amortization calculated as (1) net income excluding tax-effected core deposit and customer relationship intangibles amortization, divided by (2) average common equity less goodwill and core deposit and customer relationship intangibles, net. This measure is included as it is considered to be a critical metric to analyze and evaluate use of equity, financial condition and capital strength.
Conference Call Details
HTLF will host a conference call for shareholders, analysts and other interested parties at 5:00 p.m. EDT today. To join, please register in advance of the conference using the link provided below. Upon registering, participant dial-in numbers, Direct Event passcode and unique registrant ID will be provided. Direct Event online registration can be found at: http://www.directeventreg.com/registration/event/3970348. In the 10 minutes prior to the call start time, participants need to use the conference access information provided in the email received at the point of registering. A replay will be available until July 25, 2022, by logging on to www.htlf.com.

About HTLF
Heartland Financial USA, Inc., operating under the brand name HTLF, is a financial services company with assets of $18.37 billion. HTLF has banks serving communities in Arizona, California, Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Montana, New Mexico, Texas and Wisconsin. HTLF is committed to its core commercial business, supported by a strong retail operation, and provides a diversified line of financial services including treasury management, residential mortgage, wealth management, investment and insurance. Additional information is available at www.htlf.com.

Safe Harbor Statement
This release (including any information incorporated herein by reference), and future oral and written statements of the company and its management, may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the business, financial condition, results of operations, plans, objectives and future performance of HTLF.

Any statements about the company's expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. Forward-looking statements may include information about possible or assumed future results of the company's operations or performance. These forward-looking statements are generally identified by the use of the words such as "believe", "expect", "intent", "anticipate", "plan", "intend", "estimate", "project", "may", "will", "would", "could", "should", "may", "view", "opportunity", "potential", or similar or negative expressions of these words or phrases that are used in this release, and future oral and written statements of the company and its management. Although the company may make these statements based on management’s experience, beliefs, expectations, assumptions and best estimate of future events, the ability of the company to predict results or the actual effect or outcomes of plans or strategies is inherently uncertain, and there may be events or factors that management has not anticipated. Therefore, the accuracy and achievement of such forward-looking statements and estimates are subject to a number of risks, 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 the company currently believes could have a material effect on its operations and future prospects, are detailed below and in the risk factors in HTLF's reports filed with the Securities and Exchange Commission ("SEC"), including the "Risk Factors" section under Item 1A of Part I of the company’s Annual Report on Form 10-K for the year ended December 31, 2020, include, among others:
•COVID-19 Pandemic Risks, including risks related to the ongoing COVID-19 pandemic and measures enacted by the U.S. federal and state governments and adopted by private businesses in response to the COVID-19 pandemic;
•Economic and Market Conditions Risks, including risks related to changes in the U.S. economy in general and in the local economies in which HTLF conducts its operations and future civil unrest, natural disasters, terrorist threats or acts of war;
•Credit Risks, including risks of increasing credit losses due to deterioration in the financial condition of HTLF's borrowers, changes in asset and collateral values and climate and other borrower industry risks which may impact the provision for credit losses and net charge-offs;
•Liquidity and Interest Rate Risks, including the impact of capital market conditions and changes in monetary policy on our borrowings and net interest income;
•Operational Risks, including processing, information systems, cybersecurity, vendor, business interruption, and fraud risks;


•Strategic and External Risks, including competitive forces impacting our business and strategic acquisition risks;
•Legal, Compliance and Reputational Risks, including regulatory and litigation risks; and
•Risks of Owning Stock in HTLF, including stock price volatility and dilution as a result of future equity offerings and acquisitions.

There can be no assurance that other factors not currently anticipated by HTLF will not materially and adversely affect the company’s business, financial condition and results of operations. In addition, many of these risks and uncertainties are currently amplified by and may continue to be amplified by the COVID-19 pandemic and the impact of varying governmental responses that affect the company’s customers and the economies where they operate. Additionally, all statements in this release, including forward-looking statements speak only as of the date they are made. The company does not undertake and specifically disclaims any obligation to publicly release the results of any revisions which may be made to or correct or update any forward-looking statement to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events or to otherwise update any statement in light of new information or future events. Further information concerning HTLF and its business, including additional factors that could materially affect the company’s financial results, is included in the company’s filings with the SEC.

-FINANCIAL TABLES FOLLOW-
###



HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
For the Quarter Ended
June 30,		For the Six Months Ended
June 30,
2021202020212020
Interest Income
Interest and fees on loans$111,915 $107,005 $224,354 $213,419 
Interest on securities:
Taxable31,546 23,362 61,989 45,093 
Nontaxable4,561 3,344 9,064 5,527 
Interest on federal funds sold— — 1 — 
Interest on deposits with other banks and short-term investments60 54 126 775 
Total Interest Income148,082 133,765 295,534 264,814 
Interest Expense
Interest on deposits3,790 6,134 8,185 20,716 
Interest on short-term borrowings98 61 250 357 
Interest on other borrowings2,976 3,424 6,276 7,084 
Total Interest Expense6,864 9,619 14,711 28,157 
Net Interest Income141,218 124,146 280,823 236,657 
Provision (benefit) for credit losses(7,080)26,796 (7,728)48,316 
Net Interest Income After Provision for Credit Losses148,298 97,350 288,551 188,341 
Noninterest Income
Service charges and fees15,132 10,972 28,803 22,993 
Loan servicing income873 379 1,711 1,342 
Trust fees6,039 4,977 11,816 9,999 
Brokerage and insurance commissions865 595 1,718 1,328 
Securities gains/(losses), net2,842 2,006 2,812 3,664 
Unrealized gain/ (loss) on equity securities, net83 680 (27)449 
Net gains on sale of loans held for sale4,753 7,857 11,173 12,517 
Valuation adjustment on servicing rights(526)9 391 (1,556)
Income on bank owned life insurance937 1,167 1,766 1,665 
Other noninterest income2,166 1,995 3,318 4,053 
Total Noninterest Income33,164 30,637 63,481 56,454 
Noninterest Expense
Salaries and employee benefits57,332 50,118 116,394 100,075 
Occupancy7,399 6,502 15,317 12,973 
Furniture and equipment3,501 2,993 6,594 6,101 
Professional fees16,237 13,676 29,727 26,149 
Advertising1,649 995 3,118 3,200 
Core deposit and customer relationship intangibles amortization2,415 2,696 4,931 5,677 
Other real estate and loan collection expenses, net414 203 549 537 
Loss on sales/valuations of assets, net183 701 377 717 
Acquisition, integration and restructuring costs210 673 3,138 2,049 
Partnership investment in tax credit projects1,345 791 1,380 975 
Other noninterest expenses12,691 11,091 24,274 22,845 
Total Noninterest Expense103,376 90,439 205,799 181,298 
Income Before Income Taxes78,086 37,548 146,233 63,497 
Income taxes16,481 7,417 31,814 13,326 
Net Income61,605 30,131 114,419 50,171 
Preferred dividends(2,012)— (4,025)— 
Net Income Available to Common Stockholders$59,593 $30,131 $110,394 $50,171 
Earnings per common share-diluted$1.41 $0.82 $2.61 $1.36 
Weighted average shares outstanding-diluted42,359,873 36,915,630 42,357,133 36,919,555 



HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
For the Quarter Ended
6/30/20213/31/202112/31/20209/30/20206/30/2020
Interest Income
Interest and fees on loans$111,915 $112,439 $108,865 $102,657 $107,005 
Interest on securities:
Taxable31,546 30,443 28,154 25,016 23,362 
Nontaxable4,561 4,503 3,735 3,222 3,344 
Interest on federal funds sold— 1 — — — 
Interest on deposits with other banks and short-term investments60 66 77 72 54 
Total Interest Income148,082 147,452 140,831 130,967 133,765 
Interest Expense
Interest on deposits3,790 4,395 4,609 4,962 6,134 
Interest on short-term borrowings98 152 175 78 61 
Interest on other borrowings2,976 3,300 3,472 3,430 3,424 
Total Interest Expense6,864 7,847 8,256 8,470 9,619 
Net Interest Income141,218 139,605 132,575 122,497 124,146 
Provision (benefit) for credit losses(7,080)(648)17,072 1,678 26,796 
Net Interest Income After Provision for Credit Losses148,298 140,253 115,503 120,819 97,350 
Noninterest Income
Service charges and fees15,132 13,671 12,725 11,749 10,972 
Loan servicing income873 838 997 638 379 
Trust fees6,039 5,777 5,506 5,357 4,977 
Brokerage and insurance commissions865 853 779 649 595 
Securities gains/(losses), net2,842 (30)2,829 1,300 2,006 
Unrealized gain/ (loss) on equity securities, net83 (110)36 155 680 
Net gains on sale of loans held for sale4,753 6,420 7,104 8,894 7,857 
Valuation adjustment on servicing rights(526)917 (102)(120)9 
Income on bank owned life insurance937 829 1,021 868 1,167 
Other noninterest income2,166 1,152 1,726 1,726 1,995 
Total Noninterest Income33,164 30,317 32,621 31,216 30,637 
Noninterest Expense
Salaries and employee benefits57,332 59,062 51,615 50,978 50,118 
Occupancy7,399 7,918 6,849 6,732 6,502 
Furniture and equipment3,501 3,093 3,913 2,500 2,993 
Professional fees16,237 13,490 15,117 12,802 13,676 
Advertising1,649 1,469 1,107 928 995 
Core deposit and customer relationship intangibles amortization2,415 2,516 2,501 2,492 2,696 
Other real estate and loan collection expenses, net414 135 468 335 203 
Loss on sales/valuations of assets, net183 194 2,621 1,763 701 
Acquisition, integration and restructuring costs210 2,928 2,186 1,146 673 
Partnership investment in tax credit projects1,345 35 1,899 927 791 
Other noninterest expenses12,691 11,583 10,993 9,793 11,091 
Total Noninterest Expense103,376 102,423 99,269 90,396 90,439 
Income Before Income Taxes78,086 68,147 48,855 61,639 37,548 
Income taxes16,481 15,333 9,046 13,681 7,417 
Net Income61,605 52,814 39,809 47,958 30,131 
Preferred dividends(2,012)(2,013)(2,014)(2,437)— 
Net Income Available to Common Stockholders$59,593 $50,801 $37,795 $45,521 $30,131 
Earnings per common share-diluted$1.41 $1.20 $0.98 $1.23 $0.82 
Weighted average shares outstanding-diluted42,359,873 42,335,747 38,534,082 36,995,572 36,915,630 



HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
As of
6/30/20213/31/202112/31/20209/30/20206/30/2020
Assets
Cash and due from banks$208,702 $198,177 $219,243 $175,284 $211,429 
Interest bearing deposits with other banks and short-term investments240,426 269,685 118,660 156,371 242,149 
Cash and cash equivalents449,128 467,862 337,903 331,655 453,578 
Time deposits in other financial institutions3,138 3,138 3,129 3,129 3,128 
Securities:
Carried at fair value6,543,978 6,370,495 6,127,975 4,950,698 4,126,351 
Held to maturity, at cost, less allowance for credit losses85,439 85,293 88,839 88,700 90,579 
Other investments, at cost76,809 74,935 75,253 35,940 35,902 
Loans held for sale33,248 43,037 57,949 65,969 54,382 
Loans:
Held to maturity10,012,014 10,050,456 10,023,051 9,099,646 9,246,830 
 Allowance for credit losses(120,726)(130,172)(131,606)(103,377)(119,937)
Loans, net9,891,288 9,920,284 9,891,445 8,996,269 9,126,893 
Premises, furniture and equipment, net226,358 225,047 226,094 200,028 198,481 
Goodwill576,005 576,005 576,005 446,345 446,345 
Core deposit and customer relationship intangibles, net37,452 39,867 42,383 40,520 43,011 
Servicing rights, net6,201 6,953 6,052 5,752 5,469 
Cash surrender value on life insurance189,619 188,521 187,664 173,111 172,813 
Other real estate, net6,314 6,236 6,624 5,050 5,539 
Other assets246,029 236,754 281,024 269,498 263,682 
Total Assets$18,371,006 $18,244,427 $17,908,339 $15,612,664 $15,026,153 
Liabilities and Equity
Liabilities
Deposits:
 Demand$6,299,289 $6,175,946 $5,688,810 $5,022,567 $4,831,151 
 Savings8,189,223 8,179,251 8,019,704 6,742,151 6,810,296 
 Time1,126,606 1,203,854 1,271,391 1,002,392 1,067,252 
Total deposits15,615,118 15,559,051 14,979,905 12,767,110 12,708,699 
Short-term borrowings152,563 140,597 167,872 306,706 88,631 
Other borrowings271,244 349,514 457,042 524,045 306,459 
Accrued expenses and other liabilities172,295 139,058 224,289 203,199 174,987 
Total Liabilities16,211,220 16,188,220 15,829,108 13,801,060 13,278,776 
Stockholders' Equity
Preferred equity110,705 110,705 110,705 110,705 110,705 
Common stock42,245 42,174 42,094 36,885 36,845 
Capital surplus1,066,765 1,063,497 1,062,083 847,377 844,202 
Retained earnings883,484 833,171 791,630 761,211 723,067 
Accumulated other comprehensive income56,587 6,660 72,719 55,426 32,558 
Total Equity2,159,786 2,056,207 2,079,231 1,811,604 1,747,377 
Total Liabilities and Equity$18,371,006 $18,244,427 $17,908,339 $15,612,664 $15,026,153 



HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA AND FULL TIME EQUIVALENT EMPLOYEE DATA
For the Quarter Ended
6/30/20213/31/202112/31/20209/30/20206/30/2020
Average Balances
Assets$18,293,756 $17,964,723 $16,401,152 $15,167,225 $14,391,856 
Loans, net of unearned10,072,071 9,952,152 9,366,430 9,220,666 9,186,913 
Deposits15,576,345 15,044,561 13,518,020 12,650,822 12,288,378 
Earning assets16,819,978 16,460,124 15,042,079 13,868,360 13,103,159 
Interest bearing liabilities9,871,302 9,917,159 9,053,855 8,320,123 8,155,753 
Common equity1,980,904 1,963,674 1,769,575 1,661,381 1,574,902 
Total stockholders' equity2,091,609 2,074,379 1,880,280 1,772,086 1,580,997 
Tangible common equity (non-GAAP)(1)
1,366,285 1,346,270 1,238,691 1,172,891 1,083,834 
Key Performance Ratios
Annualized return on average assets1.35 %1.19 %0.97 %1.26 %0.84 %
Annualized return on average common equity (GAAP)12.07 10.49 8.50 10.90 7.69 
Annualized return on average tangible common equity (non-GAAP)(1)
18.05 15.90 12.77 16.11 11.97 
Annualized ratio of net charge-offs to average loans0.12 0.06 0.01 0.92 0.11 
Annualized net interest margin (GAAP)3.37 3.44 3.51 3.51 3.81 
Annualized net interest margin, fully tax-equivalent (non-GAAP)(1)
3.41 3.48 3.55 3.55 3.85 
Efficiency ratio, fully tax-equivalent (non-GAAP)(1)
57.11 56.61 54.93 54.67 55.75 

For the Quarter Ended
June 30,		For the Six Months Ended
June 30,
2021202020212020
Average Balances
Assets$18,293,756 $14,391,856 $18,130,148 $13,770,015 
Loans, net of unearned10,072,071 9,186,913 10,012,443 8,775,566 
Deposits15,576,345 12,288,378 15,311,921 11,629,785 
Earning assets16,819,978 13,103,159 16,641,045 12,497,307 
Interest bearing liabilities9,871,302 8,155,753 9,894,103 7,998,847 
Common equity1,980,904 1,574,902 1,972,337 1,597,292 
Total stockholders' equity2,091,609 1,580,997 2,083,042 1,600,340 
Tangible common stockholders' equity1,366,285 1,083,834 1,356,333 1,104,770 
Key Performance Ratios
Annualized return on average assets1.35 %0.84 %1.27 %0.73 %
Annualized return on average common equity (GAAP)12.07 7.69 11.29 6.32 
Annualized return on average tangible common equity (non-GAAP)(1)
18.05 11.97 16.99 9.95 
Annualized ratio of net charge-offs to average loans0.12 0.11 0.09 0.17 
Annualized net interest margin (GAAP)3.37 3.81 3.40 3.81 
Annualized net interest margin, fully tax-equivalent (non-GAAP)(1)
3.41 3.85 3.45 3.85 
Efficiency ratio, fully tax-equivalent (non-GAAP)(1)
57.11 55.75 56.86 58.64 
(1) Refer to "Non-GAAP Measures" in this earnings release for additional information on the usage and presentation of these non-GAAP measures, and refer to these financial tables for the reconciliations to the most directly comparable GAAP measures.



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
6/30/20213/31/202112/31/20209/30/20206/30/2020
Common Share Data
Book value per common share$48.50 $46.13 $46.77 $46.11 $44.42 
Tangible book value per common share (non-GAAP)(1)
$33.98 $31.53 $32.07 $32.91 $31.14 
Common shares outstanding, net of treasury stock42,245,452 42,173,675 42,093,862 36,885,390 36,844,744 
Tangible common equity ratio (non-GAAP)(1)
8.08 %7.54 %7.81 %8.03 %7.89 %
Other Selected Trend Information
Effective tax rate21.11 %22.50 %18.52 %22.20 %19.75 %
Full time equivalent employees2,091 2,131 2,013 1,827 1,821 
Loans Held to Maturity
Commercial and industrial$2,518,908 $2,421,260 $2,534,799 $2,303,646 $2,364,400 
Paycheck Protection Program ("PPP") 829,175 1,155,328 957,785 1,128,035 1,124,430 
Owner occupied commercial real estate 1,940,134 1,837,559 1,776,406 1,494,902 1,433,271 
Commercial and business lending5,288,217 5,414,147 5,268,990 4,926,583 4,922,101 
Non-owner occupied commercial real estate1,987,369 1,967,183 1,921,481 1,659,683 1,543,623 
Real estate construction854,295 796,027 863,220 917,765 1,115,843 
Commercial real estate lending 2,841,664 2,763,210 2,784,701 2,577,448 2,659,466 
Total commercial lending 8,129,881 8,177,357 8,053,691 7,504,031 7,581,567 
Agricultural and agricultural real estate679,608 683,969 714,526 508,058 520,773 
Residential mortgage800,884 786,994 840,442 701,899 735,762 
Consumer401,641 402,136 414,392 385,658 408,728 
Total loans held to maturity$10,012,014 $10,050,456 $10,023,051 $9,099,646 $9,246,830 
Total unfunded loan commitments $3,433,062 $3,306,042 $3,246,953 $2,980,484 $3,065,283 
(1) Refer to "Non-GAAP Measures" in this earnings release for additional information on the usage and presentation of these non-GAAP measures, and refer to these financial tables for the reconciliations to the most directly comparable GAAP measures.



HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
As of and for the Quarter Ended
6/30/20213/31/202112/31/20209/30/20206/30/2020
Allowance for Credit Losses-Loans
Balance, beginning of period$130,172 $131,606 $103,377 $119,937 $97,350 
Allowance for acquired purchased credit deteriorated loans — — 12,313 — — 
Provision (benefit) for credit losses(6,466)16 16,132 4,741 25,007 
Charge-offs(3,497)(2,126)(1,104)(21,753)(3,564)
Recoveries517 676 888 452 1,144 
Balance, end of period$120,726 $130,172 $131,606 $103,377 $119,937 
Allowance for Unfunded Commitments
Balance, beginning of period$14,619 $15,280 $14,330 $17,392 $15,468 
Provision (benefit) for credit losses(617)(661)950 (3,062)1,924 
Balance, end of period$14,002 $14,619 $15,280 $14,330 $17,392 
Allowance for lending related credit losses$134,728 $144,791 $146,886 $117,707 $137,329 
Provision for Credit Losses
Provision (benefit) for credit losses-loans$(6,466)$16 $6,572 $4,741 $25,007 
Provision for credit losses-acquired loans— — 9,560 — — 
Provision (benefit) for credit losses-unfunded commitments(617)(661)(1,372)(3,062)1,924 
Provision for credit losses-acquired unfunded commitments — — 2,322 — — 
Provision (benefit) for credit losses-held to maturity securities3 (3)(10)(1)(135)
Total provision (benefit) for credit losses$(7,080)$(648)$17,072 $1,678 $26,796 



HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
As of and for the Quarter Ended
6/30/20213/31/202112/31/20209/30/20206/30/2020
Asset Quality
Nonaccrual loans$85,268 $91,718 $87,386 $79,040 $91,609 
Loans past due ninety days or more 97 171 720 1,681 1,360 
Other real estate owned6,314 6,236 6,624 5,050 5,539 
Other repossessed assets50 239 240 130 29 
Total nonperforming assets$91,729 $98,364 $94,970 $85,901 $98,537 
Performing troubled debt restructured loans$2,122 $2,394 $2,370 $11,818 $2,636 
Nonperforming Assets Activity
Balance, beginning of period$98,364 $94,970 $85,901 $98,537 $85,371 
Net loan charge offs(2,980)(1,450)(216)(21,301)(2,420)
New nonperforming loans7,989 14,936 8,664 11,834 26,857 
Acquired nonperforming assets— — 12,781 — — 
Reduction of nonperforming loans(1)
(10,948)(8,884)(10,811)(1,994)(9,911)
Net OREO/repossessed assets sales proceeds and losses(696)(1,208)(1,349)(1,175)(1,360)
Balance, end of period$91,729 $98,364 $94,970 $85,901 $98,537 
Asset Quality Ratios
Ratio of nonperforming loans to total loans0.85 %0.91 %0.88 %0.89 %1.01 %
Ratio of nonperforming loans and performing trouble debt restructured loans to total loans0.87 0.94 0.90 1.02 1.03 
Ratio of nonperforming assets to total assets0.50 0.54 0.53 0.55 0.66 
Annualized ratio of net loan charge-offs to average loans 0.12 0.06 0.01 0.92 0.11 
Allowance for loan credit losses as a percent of loans1.21 1.30 1.31 1.14 1.30 
Allowance for lending related credit losses as a percent of loans1.35 1.44 1.47 1.29 1.49 
Allowance for loan credit losses as a percent of nonperforming loans141.42 141.66 149.37 128.07 129.01 
Loans delinquent 30-89 days as a percent of total loans0.17 0.16 0.23 0.17 0.22 
(1) Includes principal reductions, transfers to performing status and transfers to OREO.



HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS
For the Quarter Ended
June 30, 2021March 31, 2021June 30, 2020
Average
Balance		InterestRateAverage
Balance		InterestRateAverage
Balance		InterestRate
Earning Assets
Securities:
Taxable$5,862,683 $31,546 2.16 %$5,693,097 $30,443 2.17 %$3,375,245 $23,362 2.78 %
Nontaxable(1)
740,601 5,773 3.13 730,565 5,700 3.16 433,329 4,233 3.93 
Total securities6,603,284 37,319 2.27 6,423,662 36,143 2.28 3,808,574 27,595 2.91 
Interest on deposits with other banks and short-term investments271,891 60 0.09 204,488 66 0.13 210,347 54 0.10 
Federal funds sold— — — 14,020 1 0.03 — — — 
Loans:(2)
Commercial and industrial(1)
2,469,742 28,562 4.64 2,500,250 28,222 4.58 2,453,066 30,759 5.04 
PPP loans1,047,559 11,186 4.28 992,517 10,149 4.15 916,405 6,017 2.64 
Owner occupied commercial real estate1,858,891 20,097 4.34 1,778,829 19,565 4.46 1,426,019 17,670 4.98 
Non-owner occupied commercial real estate1,980,374 21,734 4.40 1,937,564 22,121 4.63 1,540,958 19,055 4.97 
Real estate construction 815,738 9,212 4.53 806,315 9,698 4.88 1,100,514 12,589 4.60 
Agricultural and agricultural real estate672,560 7,267 4.33 681,279 8,051 4.79 532,668 6,171 4.66 
Residential mortgage827,291 9,255 4.49 849,923 9,830 4.69 795,149 9,586 4.85 
Consumer399,916 5,152 5.17 405,475 5,367 5.37 422,134 5,685 5.42 
Less: allowance for credit losses-loans(127,268)— — (134,198)— — (102,675)— — 
Net loans9,944,803 112,465 4.54 9,817,954 113,003 4.67 9,084,238 107,532 4.76 
Total earning assets16,819,978 149,844 3.57 %16,460,124 149,213 3.68 %13,103,159 135,181 4.15 %
Nonearning Assets1,473,778 1,504,599 1,288,697 
Total Assets$18,293,756 $17,964,723 $14,391,856 
Interest Bearing Liabilities
Savings$8,234,151 $2,233 0.11 %$8,032,308 $2,430 0.12 %$6,690,504 $2,372 0.14 %
Time deposits1,171,266 1,557 0.53 1,233,682 1,965 0.65 1,096,386 3,762 1.38 
Short-term borrowings169,822 98 0.23 240,037 152 0.26 82,200 61 0.30 
Other borrowings296,063 2,976 4.03 411,132 3,300 3.26 286,663 3,424 4.80 
Total interest bearing liabilities9,871,302 6,864 0.28 %9,917,159 7,847 0.32 %8,155,753 9,619 0.47 %
Noninterest Bearing Liabilities
Noninterest bearing deposits6,170,928 5,778,571 4,501,488 
Accrued interest and other liabilities159,917 194,614 153,618 
Total noninterest bearing liabilities6,330,845 5,973,185 4,655,106 
Equity2,091,609 2,074,379 1,580,997 
Total Liabilities and Equity$18,293,756 $17,964,723 $14,391,856 
Net interest income, fully tax-equivalent (non-GAAP)(1)(3)
$142,980 $141,366 $125,562 
Net interest spread(1)
3.29 %3.36 %3.68 %
Net interest income, fully tax-equivalent (non-GAAP)(1)(3) to total earning assets
3.41 %3.48 %3.85 %
Interest bearing liabilities to earning assets58.69 %60.25 %62.24 %
(1) Computed on a tax-equivalent basis using an effective tax rate of 21%.
(2) Nonaccrual loans and loans held for sale are included in the average loans outstanding.
(3) Refer to "Non-GAAP Measures" in this earnings release for additional information on the usage and presentation of these non-GAAP measures, and refer to these financial tables for the reconciliations to the most directly comparable GAAP measures.






HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS
For the Six Months Ended
June 30, 2021June 30, 2020
Average
Balance		InterestRateAverage
Balance		InterestRate
Earning Assets
Securities:
Taxable$5,778,333 $61,989 2.16 %$3,253,675 $45,093 2.79 %
Nontaxable(1)
735,636 11,473 3.15 360,932 6,996 3.90 %
Total securities6,513,969 73,462 2.27 3,614,607 52,089 2.90 
Interest bearing deposits with other banks and other short-term investments238,376 126 0.11 195,833 775 0.80 
Federal funds sold6,971 1 0.03 — — — 
Loans:(2)
Commercial and industrial(1)
2,485,210 56,784 4.61 2,530,349 63,213 5.02 %
PPP loans 1,020,190 21,335 4.22 458,202 6,017 2.64 %
Owner occupied commercial real estate1,818,932 39,662 4.40 1,429,560 36,251 5.10 %
Non-owner occupied commercial real estate1,958,938 43,855 4.51 1,506,583 38,585 5.15 %
Real estate construction811,053 18,910 4.70 1,073,175 25,434 4.77 %
Agricultural and agricultural real estate
676,895 15,318 4.56 542,818 13,210 4.89 %
Residential mortgage838,545 19,085 4.59 807,440 20,007 4.98 %
Consumer402,680 10,519 5.27 427,439 11,780 5.54 %
Less: allowance for credit losses-loans(130,714)— — (88,699)— — 
Net loans9,881,729 225,468 4.60 8,686,867 214,497 4.97 
Total earning assets16,641,045 299,057 3.62 %12,497,307 267,361 4.30 %
Nonearning Assets1,489,103 1,272,708 
Total Assets$18,130,148 $13,770,015 
Interest Bearing Liabilities
Savings$8,133,787 $4,663 0.12 %$6,484,016 $12,454 0.39 %
Time deposits1,202,301 3,522 0.59 %1,121,502 8,262 1.48 
Short-term borrowings204,735 250 0.25 %112,004 357 0.64 
Other borrowings353,280 6,276 3.58 %281,325 7,084 5.06 
Total interest bearing liabilities9,894,103 14,711 0.30 %7,998,847 28,157 0.71 %
Noninterest Bearing Liabilities
Noninterest bearing deposits5,975,833 4,024,267 
Accrued interest and other liabilities177,170 146,561 
Total noninterest bearing liabilities6,153,003 4,170,828 
Stockholders' Equity2,083,042 1,600,340 
Total Liabilities and Stockholders' Equity$18,130,148 $13,770,015 
Net interest income, fully tax-equivalent (non-GAAP)(1)(3)
$284,346 $239,204 
Net interest spread(1)
3.32 %3.59 %
Net interest income, fully tax-equivalent (non-GAAP)(1)(3) to total earning assets
3.45 %3.85 %
Interest bearing liabilities to earning assets59.46 %64.00 %
(1) Computed on a tax-equivalent basis using an effective tax rate of 21%.
(2) Nonaccrual loans and loans held for sale are included in the average loans outstanding.
(3) Refer to "Non-GAAP Measures" in this earnings release for additional information on the usage and presentation of these non-GAAP measures, and refer to these financial tables for the reconciliations to the most directly comparable GAAP measures.



HEARTLAND FINANCIAL USA, INC.
SELECTED FINANCIAL DATA - SUBSIDIARY BANKS (Unaudited)
DOLLARS IN THOUSANDS
As of and For the Quarter Ended
6/30/20213/31/202112/31/20209/30/20206/30/2020
Total Assets
First Bank & Trust$2,882,969 $2,991,053 $3,171,961 $1,289,187 $1,256,710 
Citywide Banks2,611,842 2,632,199 2,628,963 2,639,516 2,546,942 
New Mexico Bank & Trust2,494,257 2,356,918 2,032,637 2,002,663 1,899,194 
Dubuque Bank and Trust Company1,990,040 1,932,234 1,853,078 1,838,260 1,849,035 
Illinois Bank & Trust1,671,240 1,584,561 1,525,503 1,500,012 1,470,000 
Arizona Bank & Trust1,645,816 1,614,740 1,529,800 1,039,253 970,775 
Bank of Blue Valley1,419,003 1,425,434 1,376,080 1,424,261 1,380,159 
Wisconsin Bank & Trust1,252,096 1,264,009 1,267,488 1,262,069 1,203,108 
Premier Valley Bank1,126,807 1,062,607 1,076,615 1,042,437 1,031,899 
Minnesota Bank & Trust955,638 995,692 1,000,168 1,007,548 951,236 
Rocky Mountain Bank646,821 620,800 616,157 617,169 590,764 
Total Deposits
First Bank & Trust$2,361,391 $2,427,920 $2,622,716 $936,366 $959,886 
Citywide Banks2,174,237 2,231,320 2,181,511 2,163,051 2,147,642 
New Mexico Bank & Trust2,195,838 2,077,304 1,749,963 1,747,527 1,698,584 
Dubuque Bank and Trust Company1,471,564 1,565,782 1,456,908 1,591,561 1,496,559 
Illinois Bank & Trust1,512,106 1,426,426 1,338,677 1,307,513 1,318,866 
Arizona Bank & Trust1,450,248 1,453,888 1,357,158 886,174 865,430 
Bank of Blue Valley1,168,617 1,178,114 1,138,264 1,142,910 1,138,818 
Wisconsin Bank & Trust1,093,119 1,067,735 1,057,369 1,011,843 1,050,766 
Premier Valley Bank963,459 896,715 836,984 855,913 869,165 
Minnesota Bank & Trust762,549 813,693 789,555 804,045 820,199 
Rocky Mountain Bank568,961 549,894 538,012 533,429 519,029 




HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA AND FULL TIME EQUIVALENT EMPLOYEE DATA
For the Quarter Ended
6/30/20213/31/202112/31/20209/30/20206/30/2020
Reconciliation of Annualized Return on Average Tangible Common Equity (non-GAAP)
Net income available to common stockholders (GAAP)$59,593 $50,801 $37,795 $45,521 $30,131 
Plus core deposit and customer relationship intangibles amortization, net of tax(1)
1,907 1,988 1,975 1,969 2,130 
Net income available to common stockholders excluding intangible amortization (non-GAAP)$61,500 $52,789 $39,770 $47,490 $32,261 
Average common equity (GAAP)$1,980,904 $1,963,674 $1,769,575 $1,661,381 $1,574,902 
Less average goodwill576,005 576,005 488,151 446,345 446,345 
Less average core deposit and customer relationship intangibles, net38,614 41,399 42,733 42,145 44,723 
Average tangible common equity (non-GAAP)$1,366,285 $1,346,270 $1,238,691 $1,172,891 $1,083,834 
Annualized return on average common equity (GAAP)12.07 %10.49 %8.50 %10.90 %7.69 %
Annualized return on average tangible common equity (non-GAAP)18.05 %15.90 %12.77 %16.11 %11.97 %
Reconciliation of Annualized Net Interest Margin, Fully Tax-Equivalent (non-GAAP)
Net Interest Income (GAAP)$141,218 $139,605 $132,575 $122,497 $124,146 
Plus tax-equivalent adjustment(1)
1,762 1,761 1,529 1,390 1,416 
Net interest income, fully tax-equivalent (non-GAAP)$142,980 $141,366 $134,104 $123,887 $125,562 
Average earning assets$16,819,978 $16,460,124 $15,042,079 $13,868,360 $13,103,159 
Annualized net interest margin (GAAP)3.37 %3.44 %3.51 %3.51 %3.81 %
Annualized net interest margin, fully tax-equivalent (non-GAAP)3.41 3.48 3.55 3.55 3.85 
Net purchase accounting discount amortization on loans included in annualized net interest margin 0.09 0.12 0.10 0.10 0.16 
Reconciliation of Tangible Book Value Per Common Share (non-GAAP)
Common equity (GAAP)$2,049,081 $1,945,502 $1,968,526 $1,700,899 $1,636,672 
Less goodwill576,005 576,005 576,005 446,345 446,345 
Less core deposit and customer relationship intangibles, net37,452 39,867 42,383 40,520 43,011 
Tangible common equity (non-GAAP)$1,435,624 $1,329,630 $1,350,138 $1,214,034 $1,147,316 
Common shares outstanding, net of treasury stock42,245,452 42,173,675 42,093,862 36,885,390 36,844,744 
Common equity (book value) per share (GAAP)$48.50 $46.13 $46.77 $46.11 $44.42 
Tangible book value per common share (non-GAAP)$33.98 $31.53 $32.07 $32.91 $31.14 
Reconciliation of Tangible Common Equity Ratio (non-GAAP)
Tangible common equity (non-GAAP)$1,435,624 $1,329,630 $1,350,138 $1,214,034 $1,147,316 
Total assets (GAAP)$18,371,006 $18,244,427 $17,908,339 $15,612,664 $15,026,153 
Less goodwill576,005 576,005 576,005 446,345 446,345 
Less core deposit and customer relationship intangibles, net37,452 39,867 42,383 40,520 43,011 
Total tangible assets (non-GAAP)$17,757,549 $17,628,555 $17,289,951 $15,125,799 $14,536,797 
Tangible common equity ratio (non-GAAP)8.08 %7.54 %7.81 %8.03 %7.89 %
(1) Computed on a tax-equivalent basis using an effective tax rate of 21%.



HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
Reconciliation of Efficiency Ratio (non-GAAP)For the Quarter Ended
6/30/20213/31/202112/31/20209/30/20206/30/2020
Net interest income (GAAP)$141,218 $139,605 $132,575 $122,497 $124,146 
Tax-equivalent adjustment(1)
1,762 1,761 1,529 1,390 1,416 
Fully tax-equivalent net interest income 142,980 141,366 134,104 123,887 125,562 
Noninterest income33,164 30,317 32,621 31,216 30,637 
Securities (gains)/losses, net(2,842)30 (2,829)(1,300)(2,006)
Unrealized (gain)/loss on equity securities, net(83)110 (36)(155)(680)
Valuation adjustment on servicing rights526 (917)102 120 (9)
Adjusted revenue (non-GAAP)$173,745 $170,906 $163,962 $153,768 $153,504 
Total noninterest expenses (GAAP)$103,376 $102,423 $99,269 $90,396 $90,439 
Less:
Core deposit and customer relationship intangibles amortization2,415 2,516 2,501 2,492 2,696 
Partnership investment in tax credit projects1,345 35 1,899 927 791 
Loss on sales/valuation of assets, net 183 194 2,621 1,763 701 
Acquisition, integration and restructuring costs210 2,928 2,186 1,146 673 
Adjusted noninterest expenses (non-GAAP)$99,223 $96,750 $90,062 $84,068 $85,578 
Efficiency ratio, fully tax-equivalent (non-GAAP)57.11 %56.61 %54.93 %54.67 %55.75 %
Acquisition, integration and restructuring costs
Salaries and employee benefits$44 $534 $232 $— $122 
Occupancy1 9 — — — 
Furniture and equipment41 607 423 496 15 
Professional fees63 670 1,422 476 505 
Advertising6 156 42 8 4 
Other noninterest expenses55 952 67 166 27 
Total acquisition, integration and restructuring costs$210 $2,928 $2,186 $1,146 $673 
After tax impact on diluted earnings per common share(1)
$— $0.05 $0.04 $0.02 $0.01 
(1) Computed on a tax-equivalent basis using an effective tax rate of 21%.



HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
For the Quarter Ended
June 30,		For the Six Months Ended
June 30,
2021202020212020
Reconciliation of Annualized Return on Average Tangible Common Equity (non-GAAP)
Net income available to common stockholders (GAAP)$59,593 $30,131 $110,394 $50,171 
Plus core deposit and customer relationship intangibles amortization, net of tax(1)
1,907 2,130 3,895 4,485 
Net income available to common stockholders excluding intangible amortization (non-GAAP)$61,500 $32,261 $114,289 $54,656 
Average common equity (GAAP)$1,980,904 $1,574,902 $1,972,337 $1,597,292 
Less average goodwill576,005 446,345 576,005 446,345 
Less average core deposit and customer relationship intangibles, net38,614 44,723 39,999 46,177 
Average tangible common equity (non-GAAP)$1,366,285 $1,083,834 $1,356,333 $1,104,770 
Annualized return on average common equity (GAAP)12.07 %7.69 %11.29 %6.32 %
Annualized return on average tangible common equity (non-GAAP)18.05 %11.97 %16.99 %9.95 %
Reconciliation of Annualized Net Interest Margin, Fully Tax-Equivalent (non-GAAP)
Net Interest Income (GAAP)$141,218 $124,146 $280,823 $236,657 
Plus tax-equivalent adjustment(1)
1,762 1,416 3,523 2,547 
Net interest income, fully tax-equivalent (non-GAAP)$142,980 $125,562 $284,346 $239,204 
Average earning assets$16,819,978 $13,103,159 $16,641,045 $12,497,307 
Annualized net interest margin (GAAP)3.37 %3.81 %3.40 %3.81 %
Annualized net interest margin, fully tax-equivalent (non-GAAP)3.41 3.85 3.45 3.85 
Purchase accounting discount amortization on loans included in annualized net interest margin0.09 0.16 0.11 0.10 
(1) Computed on a tax-equivalent basis using an effective tax rate of 21%.



HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
Reconciliation of Efficiency Ratio (non-GAAP)For the Quarter Ended
June 30,		For the Six Months Ended
June 30,
2021202020212020
Net interest income (GAAP)$141,218 $124,146 $280,823 $236,657 
Tax-equivalent adjustment(1)
1,762 1,416 3,523 2,547 
Fully tax-equivalent net interest income142,980 125,562 284,346 239,204 
Noninterest income33,164 30,637 63,481 56,454 
Securities gains, net(2,842)(2,006)(2,812)(3,664)
Unrealized (gain)/loss on equity securities, net(83)(680)27 (449)
Valuation adjustment on servicing rights526 (9)(391)1,556 
Adjusted revenue (non-GAAP)$173,745 $153,504 $344,651 $293,101 
Total noninterest expenses (GAAP)$103,376 $90,439 $205,799 $181,298 
Less:
Core deposit and customer relationship intangibles amortization2,415 2,696 4,931 5,677 
Partnership investment in tax credit projects1,345 791 1,380 975 
Loss on sales/valuation of assets, net183 701 377 717 
Acquisition, integration and restructuring costs210 673 3,138 2,049 
Adjusted noninterest expenses (non-GAAP)$99,223 $85,578 $195,973 $171,880 
Efficiency ratio, fully tax-equivalent (non-GAAP)57.11 %55.75 %56.86 %58.64 %
Acquisition, integration and restructuring costs
Salaries and employee benefits$44 $122 $578 $166 
Occupancy1 — 10 — 
Furniture and equipment41 15 648 39 
Professional fees63 505 733 1,501 
Advertising6 4 162 93 
Other noninterest expenses55 27 1,007 250 
Total acquisition, integration and restructuring costs$210 $673 $3,138 $2,049 
After tax impact on diluted earnings per common share(1)
$— $0.01 $0.06 $0.04 
(1) Computed on a tax-equivalent basis using an effective tax rate of 21%.



HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA AND FULL TIME EQUIVALENT EMPLOYEE DATA
As of and For the Quarter Ended
6/30/20213/31/202112/31/20209/30/20206/30/2020
PPP I loan balances$374,174 $739,562 $957,785 $1,128,035 $1,124,430 
Average PPP I loan balances597,703 841,262 1,064,863 1,128,488 916,405 
PPP I fee income$7,313 $7,464 $9,109 $4,542 $3,655 
PPP I interest income 1,445 2,087 2,697 2,920 2,362 
Total PPP I interest income $8,758 $9,551 $11,806 $7,462 $6,017 
PPP II loan balances $455,001 $415,766 $— $— $— 
Average PPP II loan balances449,856 151,255 — — — 
PPP II fee income$1,263 $223 $— $— $— 
PPP II interest income 1,165 375 — — — 
Total PPP II interest income$2,428 $598 $— $— $— 
Selected ratios excluding total PPP loans and total PPP interest income
Annualized net interest margin (GAAP)3.31 %3.39 %3.44 %3.59 %3.90 %
Annualized net interest margin, fully tax-equivalent (non-GAAP)(1)
3.35 3.44 3.48 3.64 3.95 
Ratio of nonperforming loans to total loans0.93 1.03 0.97 1.01 1.14 
Ratio of nonperforming loans and performing trouble debt restructured loans to total loans0.95 1.06 1.00 1.16 1.18 
Ratio of nonperforming assets to total assets0.52 0.58 0.56 0.59 0.71 
Annualized ratio of net loan charge-offs to average loans0.13 0.07 0.01 1.05 0.12 
Allowance for loan credit losses as a percent of loans1.31 1.46 1.45 1.30 1.48 
Allowance for lending related credit losses as a percent of loans1.47 1.63 1.62 1.48 1.69 
Loans delinquent 30-89 days as a percent of total loans0.18 0.18 0.25 0.19 0.26 
After tax impact of total PPP interest income on diluted earnings per common share(1)
$0.21 $0.19 $0.24 $0.16 $0.13 
As of and For the Six Months Ended
June 30, 2021June 30, 2020
Average PPP I loan balances$718,810 $458,202 
Average PPP II loan balances 301,380 — 
PPP I and II fee income$16,263 $3,655 
PPP I and II interest income5,072 2,362 
Total PPP I and II interest income$21,335 $6,017 
Selected ratios excluding total PPP loans and total PPP interest income
Annualized net interest margin (GAAP)3.35 %3.85 %
Annualized net interest margin, fully tax-equivalent (non-GAAP)(1)
3.40 3.90 
Annualized ratio of net loan charge-offs to average loans0.10 0.18 
After tax impact of total PPP interest income on diluted earnings per common share(1)
$0.40 $0.13 
(1) Computed on a tax-equivalent basis using an effective tax rate of 21%.