EX-99.1 2 ex991q32021pressrelease.htm EX-99.1 Document

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CONTACT:FOR IMMEDIATE RELEASE
Bryan R. McKeagOctober 25, 2021
Executive Vice President
Chief Financial Officer
(563) 589-1994
BMcKeag@htlf.com

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

Highlights and Developments
§Quarterly net income available to common stockholders of $53.9 million compared to $45.5 million for the third quarter of 2020, an increase of $8.4 million or 18%
§Year to date net income available to common stockholders of $164.3 million compared to $95.7 million for the nine months ended September 30, 2020, an increase of $68.6 million or 72%
§Quarterly loan growth of $262.8 million or 11% annualized, exclusive of Paycheck Protection Program ("PPP") loans
§Net recoveries on previously charged off loans of $1.3 million, nonperforming assets to total assets declined to 0.46%, and 30-89 day loan delinquencies fell to 0.12% of total loans for the third quarter of 2021
§PPP loan forgiveness received of $419.9 million during the third quarter of 2021
§
Completed offering of $150.0 million of subordinated notes with net proceeds totaling $147.6 million and fixed-to-floating interest rate set at 2.75% for the first five years
§Announced an 8% increase in the regular quarterly dividend to $0.27 per common share
Quarter Ended
September 30,		Nine Months Ended September 30,
2021202020212020
Net income available to common stockholders (in millions)$53.9 $45.5 $164.3 $95.7 
Diluted earnings per common share1.27 1.23 3.88 2.59 
Return on average assets1.19 %1.26 %1.25 %0.92 %
Return on average common equity10.32 10.90 10.95 7.90 
Return on average tangible common equity (non-GAAP)(1)
15.14 16.11 16.34 12.10 
Net interest margin3.30 3.51 3.37 3.70 
Net interest margin, fully tax-equivalent (non-GAAP)(1)
3.34 3.55 3.41 3.74 
Efficiency ratio, fully-tax equivalent (non-GAAP)(1)
60.38 54.67 58.05 57.28 
(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 had another solid quarter driven by our strong balance sheet and excellent credit metrics. We were pleased with the trajectory of non-PPP loan growth, our record low level of loan delinquencies and the net recoveries on previously charged-off loans for the quarter. We are also continuing to explore ways to improve operational efficiency, including evaluating the consolidation of our 11 bank charters."
Bruce K. Lee, president and chief executive officer, HTLF


Dubuque, Iowa, Monday, October 25, 2021-Heartland Financial USA, Inc. (NASDAQ: HTLF) today reported the following results for the quarter ended September 30, 2021 compared to the quarter ended September 30, 2020:
•Net income available to common stockholders of $53.9 million compared to $45.5 million, an increase of $8.4 million or 18%.
•Earnings per diluted common share of $1.27 compared to $1.23, an increase of $0.04 or 3%.
•Net interest income of $142.5 million compared to $122.5 million, an increase of $20.0 million or 16%.
•Return on average common equity was 10.32% and return on average assets was 1.19% compared to 10.90% and 1.26%.
•Return on average tangible common equity (non-GAAP) was 15.14% compared to 16.11%.

HTLF reported the following results for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020:
•Net income available to common stockholders of $164.3 million compared to $95.7 million, an increase of $68.6 million or 72%.
•Earnings per diluted common share of $3.88 compared to $2.59, an increase of $1.29 or 50%.
•Net interest income of $423.4 million compared to $359.2 million, an increase of $64.2 million or 18%.
•Return on average common equity was 10.95% and return on average assets was 1.25% compared to 7.90% and 0.92%.
•Return on average tangible common equity (non-GAAP) was 16.34% compared to 12.10%.

"HTLF had another solid quarter driven by our strong balance sheet and excellent credit metrics. We were pleased with the trajectory of non-PPP loan growth, our record low level of loan delinquencies and the net recoveries on previously charged-off loans for the quarter. We are also continuing to explore ways to improve operational efficiency, including evaluating the consolidation of our 11 bank charters," 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 3.30% (3.34% on a fully tax-equivalent basis, non-GAAP) during the third quarter of 2021, compared to 3.37% (3.41% on a fully tax-equivalent basis, non-GAAP) during the second quarter of 2021 and 3.51% (3.55% on a fully tax-equivalent basis, non-GAAP) during the third quarter of 2020.

Total interest income and average earning asset changes for the third quarter of 2021 compared to the third quarter of 2020 were:
•Total interest income was $149.2 million, which was an increase of $18.2 million or 14% from $131.0 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 $150.9 million, which was an increase of $18.5 million or 14% from $132.4 million.
•Average earning assets increased $3.26 billion or 23% to $17.12 billion compared to $13.87 billion, which was primarily attributable to recent acquisitions and loan growth, including PPP loans.
•The average rate on earning assets decreased 30 basis points to 3.50% compared to 3.80%, which was primarily due to recent decreases in market interest rates and a shift in earning asset mix. Total average securities were 41% of total average earning assets compared to 33%.

Total interest expense and average interest bearing liability changes for the third quarter of 2021 compared to the third quarter of 2020 were:
•Total interest expense was $6.6 million, a decrease of $1.8 million or 22% from $8.5 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 0.27% compared to 0.40%, which was primarily due to recent decreases in market interest rates.
•Average interest bearing deposits increased $1.70 billion or 22% to $9.46 billion from $7.76 billion which was primarily attributable to recent acquisitions and deposit growth.


•The average interest rate paid on interest bearing deposits decreased 11 basis points to 0.14% compared to 0.25%.
•Average borrowings decreased $140.5 million or 25% to $419.9 million from $560.4 million, which was primarily attributable to reduced advances from the PPP lending fund used to fund PPP loans to borrowers. Average advances from the PPP lending fund totaled $2.9 million compared to $158.3 million. The average interest rate paid on borrowings was 3.02% compared to 2.49%.

Net interest income increased for the third quarter of 2021 compared to the third quarter of 2020:
•Net interest income totaled $142.5 million compared to $122.5 million, which was an increase of $20.0 million or 16%.
•Net interest income on a tax-equivalent basis (non-GAAP) totaled $144.3 million compared to $123.9 million, which was an increase of $20.4 million or 16%.

Noninterest Income and Noninterest Expense

Total noninterest income was $32.7 million during the third quarter of 2021 compared to $31.2 million during the third quarter of 2020, an increase of $1.5 million or 5%. Significant changes within the noninterest income category for the third quarter of 2021 compared to the third quarter of 2020 were:
•Service charges and fees increased $3.8 million or 32% to $15.6 million from $11.7 million. The increase was primarily attributable to acquisitions completed in the fourth quarter of 2020.
•Trust fees increased $864,000 or 16% to $6.2 million from $5.4 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 $5.3 million compared to $8.9 million, which was a decrease of $3.6 million or 41% and was primarily attributable to a decrease of loans sold to the secondary market.
Total noninterest expense was $110.6 million during the third quarter of 2021 compared to $90.4 million during the third quarter of 2020, which was an increase of $20.2 million or 22%. Significant changes within the noninterest expense category for the third quarter of 2021 compared to the third quarter of 2020 were:
•Salaries and employee benefits totaled $60.7 million compared to $51.0 million, which was an increase of $9.7 million or 19%. The increase was primarily attributable to higher salary and health care expenses as a result of more full time equivalent employees and normalized health care usage. Full-time equivalent employees increased 336 to 2,163 compared to 1,827 which was primarily attributable to the acquisitions completed in the fourth quarter of 2020 and the addition of specialized commercial and agribusiness lending teams during the third quarter of 2021.
•Professional fees increased $4.4 million or 35% to $17.2 million compared to $12.8 million. The increase was primarily attributable to the utilization of external resources to support automation and technology projects, higher cloud based computing expenses and acquisitions completed in the fourth quarter of 2020.
•Other noninterest expenses increased $5.3 million or 54% to $15.1 million compared to $9.8 million. The following items impacted the third quarter of 2021 compared to the third quarter of 2020:
•Travel and staff and customer entertainment expenses increased $860,000 to $1.2 million from $310,000. Travel and customer events were limited in the third quarter of 2020 due to the pandemic.
•Credit card processing and rebate expenses increased $1.8 million or 126% to $3.3 million from $1.4 million, which was primarily attributable to increased volume.
•Fraud losses increased $458,000 or 99% to $919,000 from $461,000. The increase was primarily attributable to check fraud and wire fraud transactions given the heightened fraud environment.
The remainder of the increase was primarily attributable to acquisitions completed in the fourth quarter of 2020.

The effective tax rate was 19.15% for the third quarter of 2021 compared to 22.20% for the third quarter of 2020. The following items impacted the third quarter 2021 and 2020 tax calculations:
•Solar energy tax credits of $2.1 million compared to $965,000.
•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 $327,000 compared to $0.
•Tax-exempt interest income as a percentage of pre-tax income of 9.32% compared to 8.48%.

Total Assets, Total Loans and Total Deposits

Total assets were $19.00 billion at September 30, 2021, an increase of $1.09 billion or 6% from $17.91 billion at year-end 2020. Securities represented 40% and 35% of total assets at September 30, 2021, and December 31, 2020, respectively.

Total loans held to maturity were $9.85 billion at September 30, 2021, $10.01 billion at June 30, 2021, and $10.02 billion at December 31, 2020. Excluding total PPP loans, loans increased $262.8 million or 11% annualized during the third quarter of 2021 and $380.4 million or 6% annualized since year-end 2020.

Significant changes by loan category at September 30, 2021 compared to June 30, 2021 included:
•Commercial and business lending, which includes commercial and industrial, PPP and owner occupied commercial real estate loans, decreased $205.4 million or 4% to $5.08 billion compared to $5.29 billion.
•PPP loans originated in 2020 ("PPP I") decreased $299.9 million or 80%. PPP loans originated in 2021 ("PPP II") decreased $120.0 million or 26%.
•Excluding total PPP loans, commercial and business lending increased $214.6 million or 5% to $4.67 billion from $4.46 billion.
•Commercial real estate lending, which includes non-owner occupied commercial real estate and construction loans, decreased $7.2 million or less than 1% to $2.83 billion compared to $2.84 billion.
•Residential mortgage loans increased $39.5 million or 5% to $840.4 million from $800.9 million.
•Consumer loans increased $10.9 million or 3% to $412.6 million from $401.6 million.

Significant changes by loan category at September 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, decreased $186.1 million or 4%, to $5.08 billion compared to $5.27 billion.
•PPP I loans decreased $883.5 million or 92%. PPP II loans totaled $335.0 million.
•Excluding total PPP loans, commercial and business lending increased $362.4 million or 8% to $4.67 billion from $4.31 billion.
•Commercial real estate lending, which includes non-owner occupied commercial real estate and construction loans, increased $49.8 million or 2% to $2.83 billion compared to $2.78 billion.
•Agriculture and agricultural real estate loans decreased $29.9 million or 4% to $684.7 million compared to $714.5 million.

Total deposits were $16.02 billion as of September 30, 2021, $15.62 billion as of June 30, 2021 and $14.98 billion at year-end 2020. Significant deposit changes by category at September 30, 2021 compared to June 30, 2021 included:
•Demand deposits increased $238.4 million or 4% to $6.54 billion compared to $6.30 billion.
•Savings deposits increased $227.0 million or 3% to $8.42 billion from $8.19 billion.
•Time deposits decreased $58.3 million or 5% to $1.07 billion from $1.13 billion.

Significant deposit changes by category at September 30, 2021 compared to December 31, 2020 included:
•Demand deposits increased $848.9 million or 15% to $6.54 billion compared to $5.69 billion.
•Savings deposits increased $396.5 million or 5% to $8.42 billion from $8.02 billion.
•Time deposits decreased $203.1 million or 16% to $1.07 billion from $1.27 billion.

Growth in demand deposits during the third quarter and first nine 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 third quarter of 2021 was $4.4 million, which was a decrease of $9.2 million from provision expense of $4.7 million recorded in the third quarter of 2020. The provision benefit for the third quarter of 2021 was impacted by several factors, including:
•decrease in nonperforming loans of $2.1 million to $83.2 or 0.84% of total loans compared to $85.4 million or 0.85% of total loans at June 30, 2021,
•nonpass loans declined to 9.15% of total loans compared to 10.37% of total loans at June 30, 2021,
•loans delinquent 30-89 days as a percent of total loans fell to 0.12% compared to 0.17% at June 30, 2021,
•net recoveries of $1.3 million, and
•stable macroeconomic factors compared to the second quarter of 2021.

The allowance for credit losses for loans totaled $117.5 million and $131.6 million at September 30, 2021, and December 31, 2020, respectively. The following items have impacted the allowance for credit losses for loans for the nine months ended September 30, 2021:
•Provision benefit for the nine months ended September 30, 2021, totaled $10.9 million.
•Net charge offs of $3.2 million were recorded for the first nine months of 2021.

Provision and Allowance for Credit Losses for Unfunded Commitments
The allowance for unfunded commitments totaled $14.0 million at September 30, 2021, which was a decrease of $1.3 million from $15.3 million at December 31, 2020. Unfunded commitments increased $336.5 million to $3.58 billion at September 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 $4.5 million for the third quarter of 2021 compared to provision expense of $1.7 million for the third quarter of 2020. The total allowance for lending related credit losses was $131.5 million at September 30, 2021, which was 1.33% of total loans as of September 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 1.39% and 1.62% as of September 30, 2021, and December 31, 2020, respectively.

Nonperforming Assets

Nonperforming assets decreased $6.8 million or 7% to $88.1 million or 0.46% of total assets at September 30, 2021, compared to $95.0 million or 0.53% of total assets at December 31, 2020. Nonperforming loans were $83.2 million or 0.84% of total loans at September 30, 2021, compared to $88.1 million or 0.88% of total loans at December 31, 2020. At September 30, 2021, loans delinquent 30-89 days were 0.12% 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/1492767. 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 October 24, 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 $19.00 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
September 30,		For the Nine Months Ended
September 30,
2021202020212020
Interest Income
Interest and fees on loans$112,062 $102,657 $336,416 $316,076 
Interest on securities:
Taxable32,384 25,016 94,373 70,109 
Nontaxable4,609 3,222 13,673 8,749 
Interest on federal funds sold— — 1 — 
Interest on deposits with other banks and short-term investments132 72 258 847 
Total Interest Income149,187 130,967 444,721 395,781 
Interest Expense
Interest on deposits3,444 4,962 11,629 25,678 
Interest on short-term borrowings98 78 348 435 
Interest on other borrowings3,102 3,430 9,378 10,514 
Total Interest Expense6,644 8,470 21,355 36,627 
Net Interest Income142,543 122,497 423,366 359,154 
Provision (benefit) for credit losses(4,534)1,678 (12,262)49,994 
Net Interest Income After Provision for Credit Losses147,077 120,819 435,628 309,160 
Noninterest Income
Service charges and fees15,551 11,749 44,354 34,742 
Loan servicing income784 638 2,495 1,980 
Trust fees6,221 5,357 18,037 15,356 
Brokerage and insurance commissions866 649 2,584 1,977 
Securities gains/(losses), net1,535 1,300 4,347 4,964 
Unrealized gain/ (loss) on equity securities, net112 155 85 604 
Net gains on sale of loans held for sale5,281 8,894 16,454 21,411 
Valuation adjustment on servicing rights195 (120)586 (1,676)
Income on bank owned life insurance940 868 2,706 2,533 
Other noninterest income1,239 1,726 4,557 5,779 
Total Noninterest Income32,724 31,216 96,205 87,670 
Noninterest Expense
Salaries and employee benefits60,689 50,978 177,083 151,053 
Occupancy7,366 6,732 22,683 19,705 
Furniture and equipment3,365 2,500 9,959 8,601 
Professional fees17,242 12,802 46,969 38,951 
Advertising1,921 928 5,039 4,128 
Core deposit and customer relationship intangibles amortization2,295 2,492 7,226 8,169 
Other real estate and loan collection expenses, net78 335 627 872 
(Gain)/loss on sales/valuations of assets, net(3)1,763 374 2,480 
Acquisition, integration and restructuring costs204 1,146 3,342 3,195 
Partnership investment in tax credit projects2,374 927 3,754 1,902 
Other noninterest expenses15,096 9,793 39,370 32,638 
Total Noninterest Expense110,627 90,396 316,426 271,694 
Income Before Income Taxes69,174 61,639 215,407 125,136 
Income taxes13,250 13,681 45,064 27,007 
Net Income55,924 47,958 170,343 98,129 
Preferred dividends(2,013)(2,437)(6,038)(2,437)
Net Income Available to Common Stockholders$53,911 $45,521 $164,305 $95,692 
Earnings per common share-diluted$1.27 $1.23 $3.88 $2.59 
Weighted average shares outstanding-diluted42,415,993 36,995,572 42,381,313 36,955,970 



HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
For the Quarter Ended
9/30/20216/30/20213/31/202112/31/20209/30/2020
Interest Income
Interest and fees on loans$112,062 $111,915 $112,439 $108,865 $102,657 
Interest on securities:
Taxable32,384 31,546 30,443 28,154 25,016 
Nontaxable4,609 4,561 4,503 3,735 3,222 
Interest on federal funds sold— — 1 — — 
Interest on deposits with other banks and short-term investments132 60 66 77 72 
Total Interest Income149,187 148,082 147,452 140,831 130,967 
Interest Expense
Interest on deposits3,444 3,790 4,395 4,609 4,962 
Interest on short-term borrowings98 98 152 175 78 
Interest on other borrowings3,102 2,976 3,300 3,472 3,430 
Total Interest Expense6,644 6,864 7,847 8,256 8,470 
Net Interest Income142,543 141,218 139,605 132,575 122,497 
Provision (benefit) for credit losses(4,534)(7,080)(648)17,072 1,678 
Net Interest Income After Provision for Credit Losses147,077 148,298 140,253 115,503 120,819 
Noninterest Income
Service charges and fees15,551 15,132 13,671 12,725 11,749 
Loan servicing income784 873 838 997 638 
Trust fees6,221 6,039 5,777 5,506 5,357 
Brokerage and insurance commissions866 865 853 779 649 
Securities gains/(losses), net1,535 2,842 (30)2,829 1,300 
Unrealized gain/ (loss) on equity securities, net112 83 (110)36 155 
Net gains on sale of loans held for sale5,281 4,753 6,420 7,104 8,894 
Valuation adjustment on servicing rights195 (526)917 (102)(120)
Income on bank owned life insurance940 937 829 1,021 868 
Other noninterest income1,239 2,166 1,152 1,726 1,726 
Total Noninterest Income32,724 33,164 30,317 32,621 31,216 
Noninterest Expense
Salaries and employee benefits60,689 57,332 59,062 51,615 50,978 
Occupancy7,366 7,399 7,918 6,849 6,732 
Furniture and equipment3,365 3,501 3,093 3,913 2,500 
Professional fees17,242 16,237 13,490 15,117 12,802 
Advertising1,921 1,649 1,469 1,107 928 
Core deposit and customer relationship intangibles amortization2,295 2,415 2,516 2,501 2,492 
Other real estate and loan collection expenses, net78 414 135 468 335 
(Gain)/loss on sales/valuations of assets, net(3)183 194 2,621 1,763 
Acquisition, integration and restructuring costs204 210 2,928 2,186 1,146 
Partnership investment in tax credit projects2,374 1,345 35 1,899 927 
Other noninterest expenses15,096 12,691 11,583 10,993 9,793 
Total Noninterest Expense110,627 103,376 102,423 99,269 90,396 
Income Before Income Taxes69,174 78,086 68,147 48,855 61,639 
Income taxes13,250 16,481 15,333 9,046 13,681 
Net Income55,924 61,605 52,814 39,809 47,958 
Preferred dividends(2,013)(2,012)(2,013)(2,014)(2,437)
Net Income Available to Common Stockholders$53,911 $59,593 $50,801 $37,795 $45,521 
Earnings per common share-diluted$1.27 $1.41 $1.20 $0.98 $1.23 
Weighted average shares outstanding-diluted42,415,993 42,359,873 42,335,747 38,534,082 36,995,572 



HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
As of
9/30/20216/30/20213/31/202112/31/20209/30/2020
Assets
Cash and due from banks$192,247 $208,702 $198,177 $219,243 $175,284 
Interest bearing deposits with other banks and short-term investments135,158 240,426 269,685 118,660 156,371 
Cash and cash equivalents327,405 449,128 467,862 337,903 331,655 
Time deposits in other financial institutions3,138 3,138 3,138 3,129 3,129 
Securities:
Carried at fair value7,449,936 6,543,978 6,370,495 6,127,975 4,950,698 
Held to maturity, at cost, less allowance for credit losses85,354 85,439 85,293 88,839 88,700 
Other investments, at cost83,332 76,809 74,935 75,253 35,940 
Loans held for sale37,078 33,248 43,037 57,949 65,969 
Loans:
Held to maturity9,854,907 10,012,014 10,050,456 10,023,051 9,099,646 
 Allowance for credit losses(117,533)(120,726)(130,172)(131,606)(103,377)
Loans, net9,737,374 9,891,288 9,920,284 9,891,445 8,996,269 
Premises, furniture and equipment, net221,996 226,358 225,047 226,094 200,028 
Goodwill576,005 576,005 576,005 576,005 446,345 
Core deposit and customer relationship intangibles, net35,157 37,452 39,867 42,383 40,520 
Servicing rights, net6,351 6,201 6,953 6,052 5,752 
Cash surrender value on life insurance190,576 189,619 188,521 187,664 173,111 
Other real estate, net4,744 6,314 6,236 6,624 5,050 
Other assets237,779 246,029 236,754 281,024 269,498 
Total Assets$18,996,225 $18,371,006 $18,244,427 $17,908,339 $15,612,664 
Liabilities and Equity
Liabilities
Deposits:
 Demand$6,537,722 $6,299,289 $6,175,946 $5,688,810 $5,022,567 
 Savings8,416,204 8,189,223 8,179,251 8,019,704 6,742,151 
 Time1,068,317 1,126,606 1,203,854 1,271,391 1,002,392 
Total deposits16,022,243 15,615,118 15,559,051 14,979,905 12,767,110 
Short-term borrowings265,620 152,563 140,597 167,872 306,706 
Other borrowings371,765 271,244 349,514 457,042 524,045 
Accrued expenses and other liabilities164,345 172,295 139,058 224,289 203,199 
Total Liabilities16,823,973 16,211,220 16,188,220 15,829,108 13,801,060 
Stockholders' Equity
Preferred equity110,705 110,705 110,705 110,705 110,705 
Common stock42,250 42,245 42,174 42,094 36,885 
Capital surplus1,068,913 1,066,765 1,063,497 1,062,083 847,377 
Retained earnings926,834 883,484 833,171 791,630 761,211 
Accumulated other comprehensive income23,550 56,587 6,660 72,719 55,426 
Total Equity2,172,252 2,159,786 2,056,207 2,079,231 1,811,604 
Total Liabilities and Equity$18,996,225 $18,371,006 $18,244,427 $17,908,339 $15,612,664 



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
9/30/20216/30/20213/31/202112/31/20209/30/2020
Average Balances
Assets$18,608,775 $18,293,756 $17,964,723 $16,401,152 $15,167,225 
Loans, net of unearned9,920,047 10,072,071 9,952,152 9,366,430 9,220,666 
Deposits15,817,778 15,576,345 15,044,561 13,518,020 12,650,822 
Earning assets17,123,824 16,819,978 16,460,124 15,042,079 13,868,360 
Interest bearing liabilities9,881,350 9,871,302 9,917,159 9,053,855 8,320,123 
Common equity2,072,593 1,980,904 1,963,674 1,769,575 1,661,381 
Total stockholders' equity2,183,298 2,091,609 2,074,379 1,880,280 1,772,086 
Tangible common equity (non-GAAP)(1)
1,460,309 1,366,285 1,346,270 1,238,691 1,172,891 
Key Performance Ratios
Annualized return on average assets1.19 %1.35 %1.19 %0.97 %1.26 %
Annualized return on average common equity (GAAP)10.32 12.07 10.49 8.50 10.90 
Annualized return on average tangible common equity (non-GAAP)(1)
15.14 18.05 15.90 12.77 16.11 
Annualized ratio of net charge-offs/(recoveries) to average loans(0.05)0.12 0.06 0.01 0.92 
Annualized net interest margin (GAAP)3.30 3.37 3.44 3.51 3.51 
Annualized net interest margin, fully tax-equivalent (non-GAAP)(1)
3.34 3.41 3.48 3.55 3.55 
Efficiency ratio, fully tax-equivalent (non-GAAP)(1)
60.38 57.11 56.61 54.93 54.67 

For the Quarter Ended
September 30,		For the Nine Months Ended
September 30,
2021202020212020
Average Balances
Assets$18,608,775 $15,167,225 $18,291,444 $14,239,151 
Loans, net of unearned9,920,047 9,220,666 9,981,306 8,925,016 
Deposits15,817,778 12,650,822 15,482,394 11,972,615 
Earning assets17,123,824 13,868,360 16,803,740 12,957,661 
Interest bearing liabilities9,881,350 8,320,123 9,889,806 8,106,721 
Common equity2,072,593 1,661,381 2,006,123 1,618,811 
Total stockholders' equity2,183,298 1,772,086 2,116,828 1,658,006 
Tangible common stockholders' equity1,460,309 1,172,891 1,391,373 1,127,642 
Key Performance Ratios
Annualized return on average assets1.19 %1.26 %1.25 %0.92 %
Annualized return on average common equity (GAAP)10.32 10.90 10.95 7.90 
Annualized return on average tangible common equity (non-GAAP)(1)
15.14 16.11 16.34 12.10 
Annualized ratio of net charge-offs/(recoveries) to average loans(0.05)0.92 0.04 0.43 
Annualized net interest margin (GAAP)3.30 3.51 3.37 3.70 
Annualized net interest margin, fully tax-equivalent (non-GAAP)(1)
3.34 3.55 3.41 3.74 
Efficiency ratio, fully tax-equivalent (non-GAAP)(1)
60.38 54.67 58.05 57.28 
(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
9/30/20216/30/20213/31/202112/31/20209/30/2020
Common Share Data
Book value per common share$48.79 $48.50 $46.13 $46.77 $46.11 
Tangible book value per common share (non-GAAP)(1)
$34.33 $33.98 $31.53 $32.07 $32.91 
Common shares outstanding, net of treasury stock42,250,092 42,245,452 42,173,675 42,093,862 36,885,390 
Tangible common equity ratio (non-GAAP)(1)
7.89 %8.08 %7.54 %7.81 %8.03 %
Other Selected Trend Information
Effective tax rate19.15 %21.11 %22.50 %18.52 %22.20 %
Full time equivalent employees2,163 2,091 2,131 2,013 1,827 
Loans Held to Maturity
Commercial and industrial$2,538,369 $2,518,908 $2,421,260 $2,534,799 $2,303,646 
Paycheck Protection Program ("PPP") 409,247 829,175 1,155,328 957,785 1,128,035 
Owner occupied commercial real estate 2,135,227 1,940,134 1,837,559 1,776,406 1,494,902 
Commercial and business lending5,082,843 5,288,217 5,414,147 5,268,990 4,926,583 
Non-owner occupied commercial real estate2,020,487 1,987,369 1,967,183 1,921,481 1,659,683 
Real estate construction814,001 854,295 796,027 863,220 917,765 
Commercial real estate lending 2,834,488 2,841,664 2,763,210 2,784,701 2,577,448 
Total commercial lending 7,917,331 8,129,881 8,177,357 8,053,691 7,504,031 
Agricultural and agricultural real estate684,670 679,608 683,969 714,526 508,058 
Residential mortgage840,356 800,884 786,994 840,442 701,899 
Consumer412,550 401,641 402,136 414,392 385,658 
Total loans held to maturity$9,854,907 $10,012,014 $10,050,456 $10,023,051 $9,099,646 
Total unfunded loan commitments $3,583,417 $3,433,062 $3,306,042 $3,246,953 $2,980,484 
(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
9/30/20216/30/20213/31/202112/31/20209/30/2020
Allowance for Credit Losses-Loans
Balance, beginning of period$120,726 $130,172 $131,606 $103,377 $119,937 
Allowance for acquired purchased credit deteriorated loans — — — 12,313 — 
Provision (benefit) for credit losses(4,448)(6,466)16 16,132 4,741 
Charge-offs(1,167)(3,497)(2,126)(1,104)(21,753)
Recoveries2,422 517 676 888 452 
Balance, end of period$117,533 $120,726 $130,172 $131,606 $103,377 
Allowance for Unfunded Commitments
Balance, beginning of period$14,002 $14,619 $15,280 $14,330 $17,392 
Provision (benefit) for credit losses(35)(617)(661)950 (3,062)
Balance, end of period$13,967 $14,002 $14,619 $15,280 $14,330 
Allowance for lending related credit losses$131,500 $134,728 $144,791 $146,886 $117,707 
Provision for Credit Losses
Provision (benefit) for credit losses-loans$(4,448)$(6,466)$16 $6,572 $4,741 
Provision for credit losses-acquired loans— — — 9,560 — 
Provision (benefit) for credit losses-unfunded commitments(35)(617)(661)(1,372)(3,062)
Provision for credit losses-acquired unfunded commitments — — — 2,322 — 
Provision (benefit) for credit losses-held to maturity securities(51)3 (3)(10)(1)
Total provision (benefit) for credit losses$(4,534)$(7,080)$(648)$17,072 $1,678 



HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
As of and for the Quarter Ended
9/30/20216/30/20213/31/202112/31/20209/30/2020
Asset Quality
Nonaccrual loans$82,375 $85,268 $91,718 $87,386 $79,040 
Loans past due ninety days or more 861 97 171 720 1,681 
Other real estate owned4,744 6,314 6,236 6,624 5,050 
Other repossessed assets166 50 239 240 130 
Total nonperforming assets$88,146 $91,729 $98,364 $94,970 $85,901 
Performing troubled debt restructured loans$1,817 $2,122 $2,394 $2,370 $11,818 
Nonperforming Assets Activity
Balance, beginning of period$91,729 $98,364 $94,970 $85,901 $98,537 
Net loan (charge offs)/recoveries 1,255 (2,980)(1,450)(216)(21,301)
New nonperforming loans6,908 7,989 14,936 8,664 11,834 
Acquired nonperforming assets— — — 12,781 — 
Reduction of nonperforming loans(1)
(8,581)(10,948)(8,884)(10,811)(1,994)
Net OREO/repossessed assets sales proceeds and losses(3,165)(696)(1,208)(1,349)(1,175)
Balance, end of period$88,146 $91,729 $98,364 $94,970 $85,901 
Asset Quality Ratios
Ratio of nonperforming loans to total loans0.84 %0.85 %0.91 %0.88 %0.89 %
Ratio of nonperforming loans and performing trouble debt restructured loans to total loans0.86 0.87 0.94 0.90 1.02 
Ratio of nonperforming assets to total assets0.46 0.50 0.54 0.53 0.55 
Annualized ratio of net loan charge-offs/(recoveries) to average loans (0.05)0.12 0.06 0.01 0.92 
Allowance for loan credit losses as a percent of loans1.19 1.21 1.30 1.31 1.14 
Allowance for lending related credit losses as a percent of loans1.33 1.35 1.44 1.47 1.29 
Allowance for loan credit losses as a percent of nonperforming loans141.20 141.42 141.66 149.37 128.07 
Loans delinquent 30-89 days as a percent of total loans0.12 0.17 0.16 0.23 0.17 
(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
September 30, 2021June 30, 2021September 30, 2020
Average
Balance		InterestRateAverage
Balance		InterestRateAverage
Balance		InterestRate
Earning Assets
Securities:
Taxable$6,244,097 $32,384 2.06 %$5,862,683 $31,546 2.16 %$4,125,700 $25,016 2.41 %
Nontaxable(1)
759,073 5,835 3.05 740,601 5,773 3.13 429,710 4,078 3.78 
Total securities7,003,170 38,219 2.17 6,603,284 37,319 2.27 4,555,410 29,094 2.54 
Interest on deposits with other banks and short-term investments322,430 132 0.16 271,891 60 0.09 215,361 72 0.13 
Federal funds sold— — — — — — — — — 
Loans:(2)
Commercial and industrial(1)
2,588,270 28,224 4.33 2,469,742 28,562 4.64 2,331,467 27,777 4.74 
PPP loans602,675 11,186 7.36 1,047,559 11,186 4.28 1,128,488 7,462 2.63 
Owner occupied commercial real estate1,990,538 20,048 4.00 1,858,891 20,097 4.34 1,463,538 17,359 4.72 
Non-owner occupied commercial real estate1,964,609 22,129 4.47 1,980,374 21,734 4.40 1,589,073 18,860 4.72 
Real estate construction 835,976 9,591 4.55 815,738 9,212 4.53 1,023,490 11,628 4.52 
Agricultural and agricultural real estate674,510 7,415 4.36 672,560 7,267 4.33 514,442 5,968 4.62 
Residential mortgage855,734 9,068 4.20 827,291 9,255 4.49 774,850 8,915 4.58 
Consumer407,735 4,889 4.76 399,916 5,152 5.17 395,318 5,222 5.26 
Less: allowance for credit losses-loans(121,823)— — (127,268)— — (123,077)— — 
Net loans9,798,224 112,550 4.56 9,944,803 112,465 4.54 9,097,589 103,191 4.51 
Total earning assets17,123,824 150,901 3.50 %16,819,978 149,844 3.57 %13,868,360 132,357 3.80 %
Nonearning Assets1,484,951 1,473,778 1,298,865 
Total Assets$18,608,775 $18,293,756 $15,167,225 
Interest Bearing Liabilities
Savings$8,364,326 $2,240 0.11 %$8,234,151 $2,233 0.11 %$6,723,962 $1,940 0.11 %
Time deposits1,097,126 1,204 0.44 1,171,266 1,557 0.53 1,035,715 3,022 1.16 
Short-term borrowings139,001 98 0.28 169,822 98 0.23 128,451 78 0.24 
Other borrowings280,897 3,102 4.38 296,063 2,976 4.03 431,995 3,430 3.16 
Total interest bearing liabilities9,881,350 6,644 0.27 %9,871,302 6,864 0.28 %8,320,123 8,470 0.40 %
Noninterest Bearing Liabilities
Noninterest bearing deposits6,356,326 6,170,928 4,891,145 
Accrued interest and other liabilities187,801 159,917 183,871 
Total noninterest bearing liabilities6,544,127 6,330,845 5,075,016 
Equity2,183,298 2,091,609 1,772,086 
Total Liabilities and Equity$18,608,775 $18,293,756 $15,167,225 
Net interest income, fully tax-equivalent (non-GAAP)(1)(3)
$144,257 $142,980 $123,887 
Net interest spread(1)
3.23 %3.29 %3.40 %
Net interest income, fully tax-equivalent (non-GAAP)(1)(3) to total earning assets
3.34 %3.41 %3.55 %
Interest bearing liabilities to earning assets57.71 %58.69 %59.99 %
(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 Nine Months Ended
September 30, 2021September 30, 2020
Average
Balance		InterestRateAverage
Balance		InterestRate
Earning Assets
Securities:
Taxable$5,935,295 $94,373 2.13 %$3,546,471 $70,109 2.64 %
Nontaxable(1)
743,534 17,308 3.11 384,026 11,074 3.85 
Total securities6,678,829 111,681 2.24 %3,930,497 81,183 2.76 %
Interest bearing deposits with other banks and other short-term investments266,701 258 0.13 202,390 847 0.56 
Federal funds sold4,622 1 0.03 — — — 
Loans:(2)
Commercial and industrial(1)
2,519,608 85,008 4.51 %2,463,546 90,990 4.93 %
PPP loans 879,489 32,521 4.94 683,262 13,479 2.64 
Owner occupied commercial real estate1,876,929 59,710 4.25 1,440,981 53,610 4.97 
Non-owner occupied commercial real estate1,961,016 65,984 4.50 1,534,293 57,445 5.00 
Real estate construction819,452 28,501 4.65 1,056,493 37,062 4.69 
Agricultural and agricultural real estate
676,091 22,733 4.50 533,290 19,178 4.80 
Residential mortgage844,337 28,153 4.46 796,497 28,922 4.85 
Consumer404,384 15,408 5.09 416,654 17,002 5.45 
Less: allowance for credit losses-loans(127,718)— — (100,242)— — 
Net loans9,853,588 338,018 4.59 8,824,774 317,688 4.81 
Total earning assets16,803,740 449,958 3.58 %12,957,661 399,718 4.12 %
Nonearning Assets1,487,704 1,281,490 
Total Assets$18,291,444 $14,239,151 
Interest Bearing Liabilities
Savings$8,211,478 $6,903 0.11 %$6,564,582 $14,394 0.29 %
Time deposits1,166,858 4,726 0.54 1,092,698 11,284 1.38 
Short-term borrowings182,583 348 0.25 117,526 435 0.49 
Other borrowings328,887 9,378 3.81 331,915 10,514 4.23 
Total interest bearing liabilities9,889,806 21,355 0.29 %8,106,721 36,627 0.60 %
Noninterest Bearing Liabilities
Noninterest bearing deposits6,104,058 4,315,335 
Accrued interest and other liabilities180,752 159,089 
Total noninterest bearing liabilities6,284,810 4,474,424 
Stockholders' Equity2,116,828 1,658,006 
Total Liabilities and Stockholders' Equity$18,291,444 $14,239,151 
Net interest income, fully tax-equivalent (non-GAAP)(1)(3)
$428,603 $363,091 
Net interest spread(1)
3.29 %3.52 %
Net interest income, fully tax-equivalent (non-GAAP)(1)(3) to total earning assets
3.41 %3.74 %
Interest bearing liabilities to earning assets58.85 %62.56 %
(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
9/30/20216/30/20213/31/202112/31/20209/30/2020
Total Assets
Arizona Bank & Trust$1,808,943 $1,645,816 $1,614,740 $1,529,800 $1,039,253 
Bank of Blue Valley1,460,751 1,419,003 1,425,434 1,376,080 1,424,261 
Citywide Banks2,685,554 2,611,842 2,632,199 2,628,963 2,639,516 
Dubuque Bank and Trust Company1,968,612 1,990,040 1,932,234 1,853,078 1,838,260 
First Bank & Trust2,855,671 2,882,969 2,991,053 3,171,961 1,289,187 
Illinois Bank & Trust1,680,558 1,671,240 1,584,561 1,525,503 1,500,012 
Minnesota Bank & Trust872,291 955,638 995,692 1,000,168 1,007,548 
New Mexico Bank & Trust2,586,951 2,494,257 2,356,918 2,032,637 2,002,663 
Premier Valley Bank1,198,540 1,126,807 1,062,607 1,076,615 1,042,437 
Rocky Mountain Bank718,956 646,821 620,800 616,157 617,169 
Wisconsin Bank & Trust1,209,954 1,252,096 1,264,009 1,267,488 1,262,069 
Total Deposits
Arizona Bank & Trust$1,617,732 $1,450,248 $1,453,888 $1,357,158 $886,174 
Bank of Blue Valley1,192,868 1,168,617 1,178,114 1,138,264 1,142,910 
Citywide Banks2,282,703 2,174,237 2,231,320 2,181,511 2,163,051 
Dubuque Bank and Trust Company1,705,753 1,471,564 1,565,782 1,456,908 1,591,561 
First Bank & Trust2,367,353 2,361,391 2,427,920 2,622,716 936,366 
Illinois Bank & Trust1,509,847 1,512,106 1,426,426 1,338,677 1,307,513 
Minnesota Bank & Trust734,292 762,549 813,693 789,555 804,045 
New Mexico Bank & Trust2,206,099 2,195,838 2,077,304 1,749,963 1,747,527 
Premier Valley Bank988,579 963,459 896,715 836,984 855,913 
Rocky Mountain Bank602,155 568,961 549,894 538,012 533,429 
Wisconsin Bank & Trust1,048,367 1,093,119 1,067,735 1,057,369 1,011,843 




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
9/30/20216/30/20213/31/202112/31/20209/30/2020
Reconciliation of Annualized Return on Average Tangible Common Equity (non-GAAP)
Net income available to common stockholders (GAAP)$53,911 $59,593 $50,801 $37,795 $45,521 
Plus core deposit and customer relationship intangibles amortization, net of tax(1)
1,814 1,907 1,988 1,975 1,969 
Net income available to common stockholders excluding intangible amortization (non-GAAP)$55,725 $61,500 $52,789 $39,770 $47,490 
Average common equity (GAAP)$2,072,593 $1,980,904 $1,963,674 $1,769,575 $1,661,381 
Less average goodwill576,005 576,005 576,005 488,151 446,345 
Less average core deposit and customer relationship intangibles, net36,279 38,614 41,399 42,733 42,145 
Average tangible common equity (non-GAAP)$1,460,309 $1,366,285 $1,346,270 $1,238,691 $1,172,891 
Annualized return on average common equity (GAAP)10.32 %12.07 %10.49 %8.50 %10.90 %
Annualized return on average tangible common equity (non-GAAP)15.14 %18.05 %15.90 %12.77 %16.11 %
Reconciliation of Annualized Net Interest Margin, Fully Tax-Equivalent (non-GAAP)
Net Interest Income (GAAP)$142,543 $141,218 $139,605 $132,575 $122,497 
Plus tax-equivalent adjustment(1)
1,714 1,762 1,761 1,529 1,390 
Net interest income, fully tax-equivalent (non-GAAP)$144,257 $142,980 $141,366 $134,104 $123,887 
Average earning assets$17,123,824 $16,819,978 $16,460,124 $15,042,079 $13,868,360 
Annualized net interest margin (GAAP)3.30 %3.37 %3.44 %3.51 %3.51 %
Annualized net interest margin, fully tax-equivalent (non-GAAP)3.34 3.41 3.48 3.55 3.55 
Net purchase accounting discount amortization on loans included in annualized net interest margin 0.08 0.09 0.12 0.10 0.10 
Reconciliation of Tangible Book Value Per Common Share (non-GAAP)
Common equity (GAAP)$2,061,547 $2,049,081 $1,945,502 $1,968,526 $1,700,899 
Less goodwill576,005 576,005 576,005 576,005 446,345 
Less core deposit and customer relationship intangibles, net35,157 37,452 39,867 42,383 40,520 
Tangible common equity (non-GAAP)$1,450,385 $1,435,624 $1,329,630 $1,350,138 $1,214,034 
Common shares outstanding, net of treasury stock42,250,092 42,245,452 42,173,675 42,093,862 36,885,390 
Common equity (book value) per share (GAAP)$48.79 $48.50 $46.13 $46.77 $46.11 
Tangible book value per common share (non-GAAP)$34.33 $33.98 $31.53 $32.07 $32.91 
Reconciliation of Tangible Common Equity Ratio (non-GAAP)
Tangible common equity (non-GAAP)$1,450,385 $1,435,624 $1,329,630 $1,350,138 $1,214,034 
Total assets (GAAP)$18,996,225 $18,371,006 $18,244,427 $17,908,339 $15,612,664 
Less goodwill576,005 576,005 576,005 576,005 446,345 
Less core deposit and customer relationship intangibles, net35,157 37,452 39,867 42,383 40,520 
Total tangible assets (non-GAAP)$18,385,063 $17,757,549 $17,628,555 $17,289,951 $15,125,799 
Tangible common equity ratio (non-GAAP)7.89 %8.08 %7.54 %7.81 %8.03 %
(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
9/30/20216/30/20213/31/202112/31/20209/30/2020
Net interest income (GAAP)$142,543 $141,218 $139,605 $132,575 $122,497 
Tax-equivalent adjustment(1)
1,714 1,762 1,761 1,529 1,390 
Fully tax-equivalent net interest income 144,257 142,980 141,366 134,104 123,887 
Noninterest income32,724 33,164 30,317 32,621 31,216 
Securities (gains)/losses, net(1,535)(2,842)30 (2,829)(1,300)
Unrealized (gain)/loss on equity securities, net(112)(83)110 (36)(155)
Valuation adjustment on servicing rights(195)526 (917)102 120 
Adjusted revenue (non-GAAP)$175,139 $173,745 $170,906 $163,962 $153,768 
Total noninterest expenses (GAAP)$110,627 $103,376 $102,423 $99,269 $90,396 
Less:
Core deposit and customer relationship intangibles amortization2,295 2,415 2,516 2,501 2,492 
Partnership investment in tax credit projects2,374 1,345 35 1,899 927 
(Gain)/loss on sales/valuation of assets, net (3)183 194 2,621 1,763 
Acquisition, integration and restructuring costs204 210 2,928 2,186 1,146 
Adjusted noninterest expenses (non-GAAP)$105,757 $99,223 $96,750 $90,062 $84,068 
Efficiency ratio, fully tax-equivalent (non-GAAP)60.38 %57.11 %56.61 %54.93 %54.67 %
Acquisition, integration and restructuring costs
Salaries and employee benefits$— $44 $534 $232 $— 
Occupancy— 1 9 — — 
Furniture and equipment7 41 607 423 496 
Professional fees145 63 670 1,422 476 
Advertising11 6 156 42 8 
(Gain)/loss on sales/valuations of assets, net 39 — — — — 
Other noninterest expenses2 55 952 67 166 
Total acquisition, integration and restructuring costs$204 $210 $2,928 $2,186 $1,146 
After tax impact on diluted earnings per common share(1)
$— $— $0.05 $0.04 $0.02 
(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
September 30,		For the Nine Months Ended
September 30,
2021202020212020
Reconciliation of Annualized Return on Average Tangible Common Equity (non-GAAP)
Net income available to common stockholders (GAAP)$53,911 $45,521 $164,305 $95,692 
Plus core deposit and customer relationship intangibles amortization, net of tax(1)
1,814 1,969 5,709 6,454 
Net income available to common stockholders excluding intangible amortization (non-GAAP)$55,725 $47,490 $170,014 $102,146 
Average common equity (GAAP)$2,072,593 $1,661,381 $2,006,123 $1,618,811 
Less average goodwill576,005 446,345 576,005 446,345 
Less average core deposit and customer relationship intangibles, net36,279 42,145 38,745 44,824 
Average tangible common equity (non-GAAP)$1,460,309 $1,172,891 $1,391,373 $1,127,642 
Annualized return on average common equity (GAAP)10.32 %10.90 %10.95 %7.90 %
Annualized return on average tangible common equity (non-GAAP)15.14 %16.11 %16.34 %12.10 %
Reconciliation of Annualized Net Interest Margin, Fully Tax-Equivalent (non-GAAP)
Net Interest Income (GAAP)$142,543 $122,497 $423,366 $359,154 
Plus tax-equivalent adjustment(1)
1,714 1,390 5,237 3,937 
Net interest income, fully tax-equivalent (non-GAAP)$144,257 $123,887 $428,603 $363,091 
Average earning assets$17,123,824 $13,868,360 $16,803,740 $12,957,661 
Annualized net interest margin (GAAP)3.30 %3.51 %3.37 %3.70 %
Annualized net interest margin, fully tax-equivalent (non-GAAP)3.34 3.55 3.41 3.74 
Purchase accounting discount amortization on loans included in annualized net interest margin0.08 0.10 0.10 0.12 
(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
September 30,		For the Nine Months Ended
September 30,
2021202020212020
Net interest income (GAAP)$142,543 $122,497 $423,366 $359,154 
Tax-equivalent adjustment(1)
1,714 1,390 5,237 3,937 
Fully tax-equivalent net interest income144,257 123,887 428,603 363,091 
Noninterest income32,724 31,216 96,205 87,670 
Securities gains, net(1,535)(1,300)(4,347)(4,964)
Unrealized (gain)/loss on equity securities, net(112)(155)(85)(604)
Valuation adjustment on servicing rights(195)120 (586)1,676 
Adjusted revenue (non-GAAP)$175,139 $153,768 $519,790 $446,869 
Total noninterest expenses (GAAP)$110,627 $90,396 $316,426 $271,694 
Less:
Core deposit and customer relationship intangibles amortization2,295 2,492 7,226 8,169 
Partnership investment in tax credit projects2,374 927 3,754 1,902 
Loss on sales/valuation of assets, net(3)1,763 374 2,480 
Acquisition, integration and restructuring costs204 1,146 3,342 3,195 
Adjusted noninterest expenses (non-GAAP)$105,757 $84,068 $301,730 $255,948 
Efficiency ratio, fully tax-equivalent (non-GAAP)60.38 %54.67 %58.05 %57.28 %
Acquisition, integration and restructuring costs
Salaries and employee benefits$— $— $578 $166 
Occupancy— — 10 — 
Furniture and equipment7 496 655 535 
Professional fees145 476 878 1,977 
Advertising11 8 173 101 
(Gain)/loss on sales/valuations of assets, net39 — 39 — 
Other noninterest expenses2 166 1,009 416 
Total acquisition, integration and restructuring costs$204 $1,146 $3,342 $3,195 
After tax impact on diluted earnings per common share(1)
$— $0.02 $0.06 $0.07 
(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
9/30/20216/30/20213/31/202112/31/20209/30/2020
PPP I loan balances$74,255 $374,174 $739,562 $957,785 $1,128,035 
Average PPP I loan balances174,930 597,703 841,262 1,064,863 1,128,488 
PPP I fee income$3,886 $7,313 $7,464 $9,109 $4,542 
PPP I interest income 403 1,445 2,087 2,697 2,920 
Total PPP I interest income $4,289 $8,758 $9,551 $11,806 $7,462 
PPP II loan balances $334,992 $455,001 $415,766 $— $— 
Average PPP II loan balances427,745 449,856 151,255 — — 
PPP II fee income$5,784 $1,263 $223 $— $— 
PPP II interest income 1,113 1,165 375 — — 
Total PPP II interest income$6,897 $2,428 $598 $— $— 
Selected ratios excluding total PPP loans and total PPP interest income
Annualized net interest margin (GAAP)3.15 %3.31 %3.39 %3.44 %3.59 %
Annualized net interest margin, fully tax-equivalent (non-GAAP)(1)
3.20 3.35 3.44 3.48 3.64 
Ratio of nonperforming loans to total loans0.88 0.93 1.03 0.97 1.01 
Ratio of nonperforming loans and performing trouble debt restructured loans to total loans0.90 0.95 1.06 1.00 1.16 
Ratio of nonperforming assets to total assets0.47 0.52 0.58 0.56 0.59 
Annualized ratio of net loan charge-offs/(recoveries) to average loans(0.05)0.13 0.07 0.01 1.05 
Allowance for loan credit losses as a percent of loans1.24 1.31 1.46 1.45 1.30 
Allowance for lending related credit losses as a percent of loans1.39 1.47 1.63 1.62 1.48 
Loans delinquent 30-89 days as a percent of total loans0.12 0.18 0.18 0.25 0.19 
After tax impact of total PPP interest income on diluted earnings per common share(1)
$0.21 $0.21 $0.19 $0.24 $0.16 
As of and For the Nine Months Ended
September 30, 2021September 30, 2020
Average PPP I loan balances$535,524 $683,262 
Average PPP II loan balances 343,965 — 
PPP I and II fee income$25,933 $8,197 
PPP I and II interest income6,588 5,282 
Total PPP I and II interest income$32,521 $13,479 
Selected ratios excluding total PPP loans and total PPP interest income
Annualized net interest margin (GAAP)3.28 %3.76 %
Annualized net interest margin, fully tax-equivalent (non-GAAP)(1)
3.33 3.80 
Annualized ratio of net loan charge-offs to average loans0.05 0.47 
After tax impact of total PPP interest income on diluted earnings per common share(1)
$0.61 $0.29 
(1) Computed on a tax-equivalent basis using an effective tax rate of 21%.