Exhibit 99.1
 |
April 29, 2024
|
|
|
FOR IMMEDIATE RELEASE
|
HEARTLAND FINANCIAL USA, INC. (“HTLF”) REPORTS QUARTERLY RESULTS AS OF MARCH 31, 2024
First Quarter Highlights
| ◾ |
Quarterly net income available to common stockholders of $49.7 million or $1.16 per common share
|
| ◾ |
Adjusted earnings available to common stockholders of $52.4 million or $1.22 adjusted diluted earnings per common share, which excludes $1.4
million of acquisition, integration and restructuring costs and $2.0 million of FDIC special assessment expense
|
| ◾ |
Common equity ratio increased to 9.76%; Tangible common equity ratio (non-GAAP) improved 35 basis points to 6.88%
|
| ◾ |
Net interest margin, full tax-equivalent (non-GAAP) increased to 3.57% for the quarter ended March 31, 2024 from 3.52% for the quarter ended
December 31, 2024
|
| ◾ |
Annualized loan yield increased to 6.63% for the quarter ended March 31, 2024 from 6.49% for the quarter ended December 31, 2024
|
| ◾ |
Annualized cost of deposits stable at 2.11%
|
| ◾ |
Customer deposit growth of $9.2 million, excluding the impact of Rocky Mountain Bank deposits, while wholesale and institutional deposits decreased
$312.4 million
|
| ◾ |
Nonperforming assets decreased $12.5 million or 11% to 0.51% of total assets
|
|
For the Quarter Ended
|
||||||
|
3/31/2024
|
12/31/2023
|
3/31/2023
|
||||
|
Earnings Summary:
|
||||||
|
Net income/(loss) available to common stockholders (in millions)
|
$ 49.7
|
$ (72.4
|
) |
$ 50.8
|
||
|
Diluted earnings/(loss) per common share
|
1.16
|
(1.69
|
) |
1.19
|
||
|
Return on average assets
|
1.08
|
% |
(1.42
|
)% |
1.06
|
% |
|
Return on average common equity
|
10.90
|
(16.61
|
) |
12.43
|
||
|
Return on average tangible common equity (non-GAAP)(1)
|
16.49
|
(24.89
|
) |
20.03
|
||
|
Net interest margin
|
3.52
|
3.47
|
3.36
|
|||
|
Net interest margin, fully tax-equivalent (non-GAAP)(1)
|
3.57
|
3.52
|
3.40
|
|||
|
Efficiency ratio
|
62.46
|
293.86
|
60.94
|
|||
|
Adjusted efficiency ratio, fully-tax equivalent (non-GAAP)(1)
|
58.77
|
59.31
|
57.16
|
|||
|
Adjusted Earnings Summary (1):
|
||||||
|
Adjusted earnings available to common stockholders (in millions)
|
$ 52.4
|
$ 45.6
|
$ 53.7
|
|||
|
Adjusted diluted earnings per common share
|
1.22
|
1.06
|
1.26
|
|||
|
Adjusted annualized return on average assets
|
1.13
|
% |
0.96
|
% |
1.12
|
% |
|
Adjusted annualized return on average common equity
|
11.50
|
10.46
|
13.16
|
|||
|
Adjusted annualized return on average tangible common equity
|
17.38
|
16.38
|
21.17
|
|||
(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 delivered another solid quarter. We grew customer deposits while continuing to pay down high cost wholesale deposits and our credit quality
remains stable. The announced sale of Rocky Mountain Bank in Montana aligns with HTLF 3.0, our connected set of initiatives that will drive efficiency, enhance EPS growth, deliver higher return on assets and more efficient use of capital.
We intend to strategically reinvest sales proceeds in talent, technology and our other markets where we have the greatest growth potential.”
|
|
Bruce K. Lee, President and Chief Executive Officer, HTLF
|
Denver, Monday, April 29,
2024-Heartland Financial USA, Inc. (NASDAQ: HTLF) today reported the following results for the quarter ended March 31, 2024, compared to the quarter ended March 31, 2023:
|
•
|
Net income available to common stockholders of $49.7 million compared to $50.8 million, a decrease of $1.1 million or 2%.
|
|
•
|
Earnings per diluted common share of $1.16 compared to $1.19, a decrease of $0.03 or 3%.
|
|
•
|
Adjusted earnings available to common stockholders of $52.4 million or $1.22 per diluted common share compared to $53.7
million or $1.26 per diluted common share.
|
|
•
|
Net interest income of $154.2 million compared to $152.2 million, an increase of $2.0 million or 1%.
|
|
•
|
Return on average assets was 1.08% compared to 1.06%.
|
|
•
|
Return on average common equity was 10.90% compared to 12.43%.
|
|
•
|
Return on average tangible common equity (non-GAAP) was 16.49% compared to 20.03%.
|
HTLF 3.0 Highlights
HTLF’s new strategic plan, HTLF 3.0, was announced and initiated in the fourth quarter of 2023. HTLF 3.0’s initiatives include:
|
•
|
Investing in growth through banker expansion and talent acquisition in the Central Valley of California, Denver, Kansas City,
Milwaukee, Minneapolis, and Phoenix.
|
|
•
|
Expanding Treasury Management products and capabilities.
|
|
•
|
Creation of consumer and small business digital platforms.
|
|
•
|
Footprint and facilities optimization, with a focus on efficient return on capital.
|
In the quarter we took the following actions as part of HTLF 3.0:
|
•
|
Reduced wholesale and institutional deposits by $312.4 million.
|
|
•
|
Announced sale of Rocky Mountain Bank division.
|
|
•
|
Completed key hires and promotions in wealth management and commercial and middle market banking.
|
Rocky Mountain Bank Sale
HTLF Bank has signed definitive agreements to sell all nine Rocky Mountain Bank branches in Montana along with all associated deposits
and certain related assets to two purchasers. Per the terms of the agreements, six branches will be sold to Glacier Bank and three branches will be sold to Stockman Bank of Montana. Loans of $352.7 million, deposits of $596.3 million and fixed assets
of $13.2 million have been moved to available for sale categories as of March 31, 2024. The transactions are expected to close early in the third quarter of this year with an estimated pre-tax premium of $30-$35 million based upon current deposit
balances.
Net Interest Income and Net Interest Margin
Net interest margin, expressed as a percentage of average earning assets, was 3.52% (3.57% on a fully tax-equivalent basis, non-GAAP) for the first quarter
of 2024 compared to 3.47% (3.52% on a fully tax-equivalent basis, non-GAAP) for the fourth quarter of 2023, and 3.36% (3.40% on a fully tax-equivalent basis, non-GAAP) for the first quarter of 2023.
Total interest income and average earning asset changes for the first quarter of 2024 compared to the first quarter of 2023 were:
|
•
|
Total interest income was $251.7 million compared to $217.0 million, an increase of $34.7 million or 16% and primarily
attributable to an increase in yields on average earning assets.
|
|
•
|
Total interest income on a tax-equivalent basis (non-GAAP) was $253.7 million, an increase of $34.5 million or 16% from
$219.2 million.
|
|
•
|
Average earning assets decreased $795.6 million or 4% to $17.60 billion compared to $18.39 billion.
|
|
•
|
The average rate on earning assets increased 97 basis points to 5.80% from 4.83%, primarily due to recent interest rate increases.
|
Total interest expense and average interest bearing liability changes for the first quarter of 2024 compared to the first quarter of
2023 were:
|
•
|
Total interest expense was $97.5 million, an increase of $32.7 million from $64.8 million, due to increases in the average
interest rate paid and the average balance of interest bearing liabilities.
|
|
•
|
The average interest rate paid on interest bearing liabilities increased 102 basis points to 3.11% from 2.09%.
|
|
•
|
Average interest bearing deposits decreased $395.8 million or 3% to $11.59 billion from $11.99 billion.
|
|
•
|
The average interest rate paid on interest bearing deposits increased 100 basis points to 2.92% from 1.92%.
|
|
•
|
Average borrowings increased $421.3 million or 71% to $1.02 billion from $594.7 million, and the average interest rate paid on borrowings was
5.29% compared to 5.37%.
|
Net interest income changes for the first quarter of 2024 compared to the first quarter of 2023 were:
|
•
|
Net interest income totaled $154.2 million compared to $152.2 million, an increase of $2.0 million or 1%.
|
|
•
|
Net interest income on a tax-equivalent basis (non-GAAP) totaled $156.2 million compared to $154.4 million, an increase of $1.8 million or 1%.
|
Noninterest Income and Noninterest Expense
Total noninterest income was $27.7 million during the first quarter of 2024 compared to $30.0 million during the first quarter of 2023,
a decrease of $2.3 million or 8%. Significant changes within the noninterest income category for the first quarter of 2024 compared to the first quarter of 2023 were:
|
•
|
Trust fees decreased $614,000 or 11% to $5.0 million from $5.7 million, primarily attributable to reduced retirement plan
services income following the sale of the recordkeeping and administrative functions of HTLF Retirement Plan Services in May of 2023.
|
|
•
|
Capital market fees decreased $1.6 million or 64% to $891,000 from $2.4 million due to lower capital markets activity.
|
|
•
|
Net security gains totaled $58,000 compared to net losses of $1.1 million.
|
|
•
|
Net gains on sales of loans held for sale decreased $1.7 million or 94% to $104,000 from $1.8 million, primarily attributable
to a decrease in residential mortgage loans sold to the secondary market as HTLF exited mortgage loan originations through PrimeWest.
|
|
•
|
Other noninterest income increased $884,000 or 60% to $2.3 million compared to $1.5 million. HTLF recorded $715,000 of income on assets
associated with its deferred compensation plan which was largely offset with additional salaries and benefits expenses.
|
Total noninterest expense was $113.6 million during the first quarter of 2024 compared to $111.0 million during the first quarter of
2023, which was an increase of $2.6 million or 2%. Significant changes within the noninterest expense category for the first quarter of 2024 compared to the first quarter of 2023 were:
|
•
|
Salaries and employee benefits totaled $64.0 million compared to $62.1 million, an increase of $1.8 million or 3%. The
increase was attributable to higher benefit costs including incentive compensation and retirement plans partially offset by a reduction of full-time equivalent employees. Full-time equivalent employees totaled 1,888 compared to 1,991, a
decrease of 103 or 5%.
|
|
•
|
Other professional fees totaled $15.5 million compared to $12.8 million, an increase of $2.7 million or 21% which was
primarily driven by increases in consulting and legal expenses.
|
|
•
|
FDIC insurance assessments totaled $5.0 million compared to $3.3 million, an increase of $1.7 million due to a special
assessment expense of $2.0 million. This special assessment is in addition to the $8.1 million HTLF recorded in the fourth quarter of 2023 based upon additional FDIC expected losses.
|
|
•
|
Other noninterest expenses totaled $14.1 million compared to $15.4 million, a decrease of $1.3 million or 9% in conjunction with HTLF’s 3.0
efficiency efforts.
|
The effective tax rate was 23.17% for the first quarter of 2024 compared to 22.50% for first quarter of 2023. The following items
impacted the first quarter 2024 and 2023 tax calculations:
|
•
|
Various tax credits of $935,000 compared to $969,000.
|
|
•
|
Tax expense of $1.3 million compared to $929,000 resulting from the disallowed interest expense related to tax-exempt loans
and securities, aligning with increases in total interest expense.
|
|
•
|
Tax-exempt interest income as a percentage of pre-tax income of 11.08% compared to 12.20%.
|
Total Assets, Total Loans and Total Deposits
Total assets were $19.13 billion at March 31, 2024, a decrease of $278.9 million or 1% from $19.41 billion at year-end 2023. Securities represented 28% and
29% of total assets at March 31, 2024, and December 31, 2023, respectively.
Total loans held to maturity were $11.64 billion at March 31, 2024, compared to $12.07 billion at December 31, 2023, which was a decrease of $424.0 million
or 4%. Excluding the impact of the transfer of $352.7 million of loans to held for sale related to the planned sale of Rocky Mountain Bank, loans held to maturity decreased $71.3 million or 1%.
Significant changes by loan category at March 31, 2024 compared to December 31, 2023 included:
|
•
|
Commercial and business lending, which includes commercial and industrial, PPP and owner occupied commercial real estate
loans, decreased $200.7 million or 3% to $6.09 billion compared to $6.29 billion. Excluding the decrease related to Rocky Mountain Bank, commercial and business lending decreased $41.0 million or 1%.
|
|
•
|
Commercial real estate lending, which includes non-owner occupied commercial real estate and construction loans, decreased
$28.8 million or 1% to $3.54 billion compared to $3.57 billion. Excluding the decrease related to Rocky Mountain Bank, commercial real estate lending increased $35.7 million or 1%.
|
|
•
|
Agricultural and agricultural real estate loans decreased $109.3 million or 12% to $809.9 million compared to $919.2 million.
Excluding the decrease related to Rocky Mountain Bank, agricultural and agricultural real estate loans decreased $46.5 million or 5%.
|
|
•
|
Residential mortgage loans decreased $41.8 million or 5% to $756.0 million compared to $797.8 million. Excluding the decrease related to Rocky
Mountain Bank, residential mortgage loans decreased $9.9 million or 1%.
|
Total deposits were $15.30 billion as of March 31, 2024, compared to $16.20 billion at December 31, 2023, which was a decrease of $899.5 million or 6%.
Excluding the impact of the transfer of $596.3 million of deposits to held for sale related to the planned sale of Rocky Mountain Bank, deposits decreased $303.2 million or 2%.
Total customer deposits were $14.27 billion as of March 31, 2024 compared to $14.86 billion at December 31, 2023, which was a decrease
of $587.1 million or 4%. Excluding the impact of the transfer of $596.3 million of deposits to held for sale related to the planned sale of Rocky Mountain Bank, customer deposits increased $9.2 million. Significant customer deposit changes by
category at March 31, 2024, compared to December 31, 2023, included:
|
•
|
Customer demand deposits decreased $235.9 million or 5% to $4.26 billion compared to $4.50 billion. Excluding the decrease
related to Rocky Mountain Bank, customer demand deposits decreased $91.9 million or 2%.
|
|
•
|
Customer savings deposits decreased $141.3 million or 2% to $8.27 billion compared to $8.41 billion. Excluding the decrease
related to Rocky Mountain Bank, customer savings deposits increased $189.0 million or 2%.
|
|
•
|
Customer time deposits decreased $209.9 million or 11% to $1.73 billion compared to $1.94 billion. Excluding the decrease related to Rocky
Mountain Bank, customer time deposits decreased $87.9 million or 5%.
|
Total wholesale and institutional deposits were $1.03 billion as of March 31, 2024, which was a decrease of $312.4 million or 23% from
$1.35 billion at December 31, 2023. Significant wholesale and institutional deposit changes by category at March 31, 2024 compared to December 31, 2023 included:
|
•
|
Wholesale and institutional savings deposits increased $4.9 million or 1% to $399.3 million compared to $394.4 million.
|
|
•
|
Wholesale time deposits decreased $317.3 million or 33% to $633.6 million compared to $950.9 million.
|
Provision and Allowance
Provision and Allowance for Credit Losses for Loans
Provision for credit losses for loans for the first quarter of 2024 was $3.7 million, an increase of $1.5 million from $2.2 million recorded in the first
quarter of 2023.
The allowance for credit losses for loans totaled $123.9 million at March 31, 2024 and $122.6 million at December 31, 2023. The
following items impacted the allowance for credit losses for loans at March 31, 2024:
|
•
|
Provision expense for the three months ended March 31, 2024, totaled $3.7 million. The provision expense reflected a benefit
of $2.0 million for the impact of the Rocky Mountain Bank loans transferred to the available for sale category.
|
|
•
|
Net charge-offs of $2.3 million were recorded for the first three months of 2024.
|
Provision and Allowance for Credit Losses for Unfunded Commitments
The allowance for unfunded commitments decreased $2.7 million or 16% to $13.8 million at March 31, 2024, from $16.5 million at December 31, 2023, largely
due to a reduction of $105.7 million in unfunded commitments for construction loans, which carry the highest loss rate. Total unfunded commitments decreased $88.1 million or 2% to $4.54 billion at March 31, 2024 compared to $4.63 billion at December
31, 2023.
Total Provision and Allowance for Lending Related Credit Losses
The total provision expense for lending related credit losses was $986,000 for the first quarter of 2024 compared to $3.1 million for the first quarter of
2023. The total allowance for lending related credit losses was $137.7 million or 1.18% of total loans at March 31, 2024, compared to $139.0 million or 1.15% of total loans as of December 31, 2023.
Nonperforming Assets
Nonperforming assets decreased $12.5 million or 11% to $98.0 million or 0.51% of total assets at March 31, 2024, compared to $110.5 million or 0.57% of
total assets at December 31, 2023. Nonperforming loans were $95.4 million or 0.82% of total loans at March 31, 2024, compared to $97.9 million or 0.81% of total loans at December 31, 2023. At March 31, 2024, loans delinquent 30-89 days were 0.31% of
total loans compared to 0.09% of total loans at December 31, 2023. The increase in the 30-89 day delinquencies was primarily associated with a single $19.9 million construction loan that is currently in process of being sold by owners. Other real
estate owned, net, decreased $10.0 million or 79% to $2.6 million at March 31, 2024 from $12.5 million at December 31, 2023. HTLF added one property with a book value of $11.3 million to other real estate during the third quarter of 2023 which was
sold in the first quarter of 2024.
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:
|
•
|
Adjusted earnings available to common stockholders, adjusts net income for the loss from sale of securities, and other
non-operating expenses as well as the tax effect of those transactions. Management believes this measure enhances the comparability net income available to common stockholders as it reflects adjustments commonly made by management,
investors and analysts to evaluate the ongoing operations and enhance comparability with the results of prior periods.
|
|
•
|
Adjusted annualized return on average assets, adjusts net income for the loss from sale of securities, and other non-operating
expenses as well as the tax effect of those transactions. Management believes this measure enhances the comparability of annualized return on average assets as it reflects adjustments commonly made by management, investors and analysts to
evaluate the ongoing operations and enhance comparability with the results of prior periods.
|
|
•
|
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.
|
|
•
|
Adjusted 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. Net interest margin, fully tax equivalent, is net interest income adjusted for the tax-favored status of certain
loans and securities divided by average earning assets.
|
|
•
|
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.
|
|
•
|
Adjusted annualized return on average common equity, adjusts net income for the loss from sale of securities, and other
non-operating expenses as well as the tax effect of those transactions. Management believes this measure enhances the comparability of annualized return on average assets as it reflects adjustments commonly made by management, investors and
analysts to evaluate the ongoing operations and enhance comparability with the results of prior periods.
|
|
•
|
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.
|
|
•
|
Adjusted annualized return on average tangible common equity, adjusts net income available to common stockholders for the
loss from sale of securities, and other non-operating expenses as well as the tax effect of those transactions. Management believes this measure enhances the comparability of annualized return on average assets as it reflects adjustments
commonly made by management, investors and analysts to evaluate the ongoing operations and enhance comparability with the results of prior periods.
|
|
•
|
Annualized ratio of core expenses to average assets adjusts noninterest expenses to exclude specific items noted in the reconciliation.
Management includes this measure as it is considered to be a critical metric to analyze and evaluate controllable expenses related to primary business operations.
|
Change in Conference Call
As a result of today’s announcement that HTLF has entered into a merger agreement with UMB Financial Corporation (“UMB”) and a wholly-owned subsidiary of
UMB, HTLF has cancelled the previously announced HTLF conference call scheduled for 5:00 p.m. EDT on Wednesday May 1, 2024, to discuss the Company’s performance for the first quarter of 2024.
About HTLF
Heartland Financial USA, Inc., is a Denver, Colorado-based bank holding company operating under the brand name HTLF, with assets of $19.13 billion as of
March 31, 2024. HTLF’s banks serve 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, wealth management, investments and residential mortgage. 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, 2023, include, among others:
|
•
|
Economic and Market Conditions Risks, including risks related to the deterioration of the U.S. economy in general and in the
local economies in which HTLF conducts its operations and future civil unrest, natural disasters, pandemics and governmental measures addressing them, climate change and climate-related regulations, persistent inflation, higher interest
rates, supply chain issues, labor shortages, 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 due to 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, rising interest rates 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 economic, political, and competitive forces impacting our business;
|
|
•
|
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 HTLF’s
business, financial condition and results of operations. Additionally, all statements in this release, including forward-looking statements speak only as of the date they are made. HTLF 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 HTLF’s financial results, is included in HTLF’s
filings with the SEC.
-FINANCIAL TABLES FOLLOW-
###
|
CONTACT:
|
|
|
Kevin L. Thompson
|
|
|
Executive Vice President
|
|
|
Chief Financial Officer
|
|
|
(563) 589-1994
|
|
|
kthompson@htlf.com
|
|
HEARTLAND FINANCIAL USA, INC.
|
|||
|
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
|
|||
|
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
|
|||
|
For the Three Months Ended
March 31,
|
|||
|
2024
|
2023
|
||
|
Interest Income
|
|||
|
Interest and fees on loans
|
$ 195,661
|
$ 153,843
|
|
|
Interest on securities:
|
|||
|
Taxable
|
47,014
|
55,976
|
|
|
Nontaxable
|
6,041
|
6,028
|
|
|
Interest on federal funds sold
|
—
|
—
|
|
|
Interest on deposits with other banks and short-term investments
|
3,006
|
1,131
|
|
|
Total Interest Income
|
251,722
|
216,978
|
|
|
Interest Expense
|
|||
|
Interest on deposits
|
84,134
|
56,898
|
|
|
Interest on borrowings
|
7,524
|
2,422
|
|
|
Interest on term debt
|
5,849
|
5,446
|
|
|
Total Interest Expense
|
97,507
|
64,766
|
|
|
Net Interest Income
|
154,215
|
152,212
|
|
|
Provision for credit losses
|
986
|
3,074
|
|
|
Net Interest Income After Provision for Credit Losses
|
153,229
|
149,138
|
|
|
Noninterest Income
|
|||
|
Service charges and fees
|
17,063
|
17,136
|
|
|
Loan servicing income
|
131
|
714
|
|
|
Trust fees
|
5,043
|
5,657
|
|
|
Brokerage and insurance commissions
|
754
|
696
|
|
|
Capital markets fees
|
891
|
2,449
|
|
|
Securities gains (losses), net
|
58
|
(1,104)
|
|
|
Unrealized gain/(loss) on equity securities, net
|
95
|
193
|
|
|
Net gains on sale of loans held for sale
|
104
|
1,831
|
|
|
Income on bank owned life insurance
|
1,177
|
964
|
|
|
Other noninterest income
|
2,347
|
1,463
|
|
|
Total Noninterest Income
|
27,663
|
29,999
|
|
|
Noninterest Expense
|
|||
|
Salaries and employee benefits
|
63,955
|
62,149
|
|
|
Occupancy
|
7,263
|
7,209
|
|
|
Furniture and equipment
|
2,337
|
2,915
|
|
|
Professional fees
|
15,531
|
12,797
|
|
|
FDIC insurance assessments
|
4,969
|
3,279
|
|
|
Advertising
|
1,358
|
1,985
|
|
|
Core deposit intangibles amortization
|
1,492
|
1,788
|
|
|
Other real estate and loan collection expenses, net
|
512
|
155
|
|
|
(Gain) loss on sales/valuations of assets, net
|
214
|
1,115
|
|
|
Acquisition, integration and restructuring costs
|
1,375
|
1,673
|
|
|
Partnership investment in tax credit projects
|
494
|
538
|
|
|
Other noninterest expenses
|
14,095
|
15,440
|
|
|
Total Noninterest Expense
|
113,595
|
111,043
|
|
|
Income Before Income Taxes
|
67,297
|
68,094
|
|
|
Income taxes
|
15,590
|
15,318
|
|
|
Net Income/(Loss)
|
51,707
|
52,776
|
|
|
Preferred dividends
|
(2,013)
|
(2,013)
|
|
|
Net Income/(Loss) Available to Common Stockholders
|
$
49,694
|
$
50,763
|
|
|
Earnings/(loss) per common share-diluted
|
$
1.16
|
$
1.19
|
|
|
Weighted average shares outstanding-diluted
|
42,915,768
|
42,742,878
|
|
|
HEARTLAND FINANCIAL USA, INC.
|
|||||||||
|
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
|
|||||||||
|
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
|
|||||||||
|
For the Quarter Ended
|
|||||||||
|
3/31/2024
|
12/31/2023
|
9/30/2023
|
6/30/2023
|
3/31/2023
|
|||||
|
Interest Income
|
|||||||||
|
Interest and fees on loans
|
$ 195,661
|
$ 192,861
|
$ 182,394
|
$ 168,899
|
$ 153,843
|
||||
|
Interest on securities:
|
|||||||||
|
Taxable
|
47,014
|
54,573
|
54,800
|
58,172
|
55,976
|
||||
|
Nontaxable
|
6,041
|
6,278
|
6,584
|
6,378
|
6,028
|
||||
|
Interest on federal funds sold
|
—
|
—
|
3
|
—
|
—
|
||||
|
Interest on deposits with other banks and short-term investments
|
3,006
|
2,174
|
1,651
|
2,051
|
1,131
|
||||
|
Total Interest Income
|
251,722
|
255,886
|
245,432
|
235,500
|
216,978
|
||||
|
Interest Expense
|
|||||||||
|
Interest on deposits
|
84,134
|
88,071
|
92,744
|
81,975
|
56,898
|
||||
|
Interest on borrowings
|
7,524
|
5,874
|
1,167
|
848
|
2,422
|
||||
|
Interest on term debt
|
5,849
|
5,804
|
5,765
|
5,545
|
5,446
|
||||
|
Total Interest Expense
|
97,507
|
99,749
|
99,676
|
88,368
|
64,766
|
||||
|
Net Interest Income
|
154,215
|
156,137
|
145,756
|
147,132
|
152,212
|
||||
|
Provision for credit losses
|
986
|
11,738
|
1,516
|
5,379
|
3,074
|
||||
|
Net Interest Income After Provision for Credit Losses
|
153,229
|
144,399
|
144,240
|
141,753
|
149,138
|
||||
|
Noninterest Income
|
|||||||||
|
Service charges and fees
|
17,063
|
18,708
|
18,553
|
19,627
|
17,136
|
||||
|
Loan servicing income
|
131
|
158
|
278
|
411
|
714
|
||||
|
Trust fees
|
5,043
|
4,905
|
4,734
|
5,419
|
5,657
|
||||
|
Brokerage and insurance commissions
|
754
|
729
|
692
|
677
|
696
|
||||
|
Capital markets fees
|
891
|
1,676
|
1,845
|
4,037
|
2,449
|
||||
|
Securities gains (losses), net
|
58
|
(140,007)
|
(114)
|
(314)
|
(1,104)
|
||||
|
Unrealized gain/(loss) on equity securities, net
|
95
|
75
|
13
|
(41)
|
193
|
||||
|
Net gains on sale of loans held for sale
|
104
|
94
|
905
|
1,050
|
1,831
|
||||
|
Income on bank owned life insurance
|
1,177
|
729
|
858
|
1,220
|
964
|
||||
|
Other noninterest income
|
2,347
|
1,132
|
619
|
407
|
1,463
|
||||
|
Total Noninterest Income
|
27,663
|
(111,801)
|
28,383
|
32,493
|
29,999
|
||||
|
Noninterest Expense
|
|||||||||
|
Salaries and employee benefits
|
63,955
|
64,766
|
62,262
|
62,099
|
62,149
|
||||
|
Occupancy
|
7,263
|
6,509
|
6,438
|
6,691
|
7,209
|
||||
|
Furniture and equipment
|
2,337
|
2,901
|
2,720
|
3,063
|
2,915
|
||||
|
Professional fees
|
15,531
|
17,060
|
13,616
|
15,194
|
12,797
|
||||
|
FDIC insurance assessments
|
4,969
|
10,313
|
3,313
|
3,035
|
3,279
|
||||
|
Advertising
|
1,358
|
1,677
|
1,633
|
3,052
|
1,985
|
||||
|
Core deposit intangibles amortization
|
1,492
|
1,611
|
1,625
|
1,715
|
1,788
|
||||
|
Other real estate and loan collection expenses, net
|
512
|
505
|
481
|
348
|
155
|
||||
|
(Gain) loss on sales/valuations of assets, net
|
214
|
2,072
|
108
|
(3,372)
|
1,115
|
||||
|
Acquisition, integration and restructuring costs
|
1,375
|
4,365
|
2,429
|
1,892
|
1,673
|
||||
|
Partnership investment in tax credit projects
|
494
|
3,573
|
1,136
|
154
|
538
|
||||
|
Other noninterest expenses
|
14,095
|
14,933
|
15,292
|
15,575
|
15,440
|
||||
|
Total Noninterest Expense
|
113,595
|
130,285
|
111,053
|
109,446
|
111,043
|
||||
|
Income Before Income Taxes
|
67,297
|
(97,687)
|
61,570
|
64,800
|
68,094
|
||||
|
Income taxes
|
15,590
|
(27,324)
|
13,479
|
15,384
|
15,318
|
||||
|
Net Income/(Loss)
|
51,707
|
(70,363)
|
48,091
|
49,416
|
52,776
|
||||
|
Preferred dividends
|
(2,013)
|
(2,012)
|
(2,013)
|
(2,012)
|
(2,013)
|
||||
|
Net Income/(Loss) Available to Common Stockholders
|
$
49,694
|
$
(72,375)
|
$
46,078
|
$
47,404
|
$
50,763
|
||||
|
Earnings/(loss) per common share-diluted
|
$
1.16
|
$
(1.69)
|
$
1.08
|
$
1.11
|
$
1.19
|
||||
|
Weighted average shares outstanding-diluted
|
42,915,768
|
42,838,405
|
42,812,563
|
42,757,603
|
42,742,878
|
||||
|
HEARTLAND FINANCIAL USA, INC.
|
|||||||||
|
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
|
|||||||||
|
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
|
|||||||||
|
As of
|
|||||||||
|
3/31/2024
|
12/31/2023
|
9/30/2023
|
6/30/2023
|
3/31/2023
|
|||||
|
Assets
|
|||||||||
|
Cash and due from banks
|
$ 208,176
|
$ 275,554
|
$ 248,756
|
$ 317,303
|
$ 274,354
|
||||
|
Interest bearing deposits with other banks and short-term investments
|
236,190
|
47,459
|
99,239
|
82,884
|
87,757
|
||||
|
Cash and cash equivalents
|
444,366
|
323,013
|
347,995
|
400,187
|
362,111
|
||||
|
Time deposits in other financial institutions
|
1,240
|
1,240
|
1,490
|
1,490
|
1,740
|
||||
|
Securities:
|
|||||||||
|
Carried at fair value
|
4,418,222
|
4,646,891
|
5,482,687
|
5,798,041
|
6,096,657
|
||||
|
Held to maturity, at cost
|
841,055
|
838,241
|
835,468
|
834,673
|
832,098
|
||||
|
Other investments, at cost
|
68,524
|
91,277
|
90,001
|
72,291
|
72,364
|
||||
|
Loans held for sale
|
352,744
|
5,071
|
6,262
|
14,353
|
10,425
|
||||
|
Loans:
|
|||||||||
|
Held to maturity
|
11,644,641
|
12,068,645
|
11,872,436
|
11,717,974
|
11,495,353
|
||||
|
Allowance for credit losses
|
(123,934)
|
(122,566)
|
(110,208)
|
(111,198)
|
(112,707)
|
||||
|
Loans, net
|
11,520,707
|
11,946,079
|
11,762,228
|
11,606,776
|
11,382,646
|
||||
|
Premises, furniture and equipment, net
|
176,582
|
181,070
|
187,436
|
190,420
|
191,267
|
||||
|
Goodwill
|
576,005
|
576,005
|
576,005
|
576,005
|
576,005
|
||||
|
Core deposit intangibles, net
|
16,923
|
18,415
|
20,026
|
21,651
|
23,366
|
||||
|
Cash surrender value on life insurance
|
197,671
|
197,085
|
196,694
|
195,793
|
194,419
|
||||
|
Other real estate, net
|
2,590
|
12,548
|
14,362
|
2,677
|
7,438
|
||||
|
Other assets
|
516,198
|
574,772
|
609,139
|
510,359
|
432,008
|
||||
|
Total Assets
|
$ 19,132,827
|
$ 19,411,707
|
$ 20,129,793
|
$ 20,224,716
|
$ 20,182,544
|
||||
|
Liabilities and Equity
|
|||||||||
|
Liabilities
|
|||||||||
|
Deposits:
|
|||||||||
|
Demand
|
$ 4,264,390
|
$ 4,500,304
|
$ 4,792,813
|
$ 4,897,858
|
$ 5,119,554
|
||||
|
Savings
|
8,669,221
|
8,805,597
|
8,754,911
|
8,772,596
|
9,256,609
|
||||
|
Time
|
2,368,555
|
2,895,813
|
3,553,269
|
3,993,089
|
3,305,183
|
||||
|
Total deposits
|
15,302,166
|
16,201,714
|
17,100,993
|
17,663,543
|
17,681,346
|
||||
|
Deposits held for sale
|
596,328
|
—
|
—
|
—
|
—
|
||||
|
Borrowings
|
650,033
|
622,255
|
392,634
|
44,364
|
92,337
|
||||
|
Term debt
|
372,652
|
372,396
|
372,059
|
372,403
|
372,097
|
||||
|
Accrued expenses and other liabilities
|
232,815
|
282,225
|
438,577
|
285,416
|
207,359
|
||||
|
Total Liabilities
|
17,153,994
|
17,478,590
|
18,304,263
|
18,365,726
|
18,353,139
|
||||
|
Stockholders’ Equity
|
|||||||||
|
Preferred equity
|
110,705
|
110,705
|
110,705
|
110,705
|
110,705
|
||||
|
Common stock
|
42,784
|
42,688
|
42,656
|
42,645
|
42,559
|
||||
|
Capital surplus
|
1,093,207
|
1,090,740
|
1,088,267
|
1,087,358
|
1,084,112
|
||||
|
Retained earnings
|
1,178,330
|
1,141,501
|
1,226,740
|
1,193,522
|
1,158,948
|
||||
|
Accumulated other comprehensive income/(loss)
|
(446,193)
|
(452,517)
|
(642,838)
|
(575,240)
|
(566,919)
|
||||
|
Total Equity
|
1,978,833
|
1,933,117
|
1,825,530
|
1,858,990
|
1,829,405
|
||||
|
Total Liabilities and Equity
|
$ 19,132,827
|
$ 19,411,707
|
$ 20,129,793
|
$ 20,224,716
|
$ 20,182,544
|
||||
|
HEARTLAND FINANCIAL USA, INC.
|
||||||||||
|
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
|
||||||||||
|
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
|
||||||||||
|
For the Quarter Ended
|
||||||||||
|
3/31/2024
|
12/31/2023
|
9/30/2023
|
6/30/2023
|
3/31/2023
|
||||||
|
Assets
|
$ 19,296,638
|
$ 19,667,825
|
$ 20,207,920
|
$ 20,221,511
|
$ 20,118,005
|
|||||
|
Loans, net of unearned
|
12,021,930
|
11,938,272
|
11,800,064
|
11,625,442
|
11,378,078
|
|||||
|
Deposits
|
16,042,402
|
16,709,394
|
17,507,813
|
17,689,138
|
17,505,867
|
|||||
|
Customer deposits
|
14,816,652
|
14,969,948
|
14,699,235
|
14,655,535
|
15,123,181
|
|||||
|
Earning assets
|
17,597,068
|
17,853,957
|
18,439,010
|
18,523,552
|
18,392,649
|
|||||
|
Interest-bearing liabilities
|
12,607,745
|
12,721,680
|
13,158,631
|
13,209,794
|
12,582,234
|
|||||
|
Common equity
|
1,832,959
|
1,729,086
|
1,746,818
|
1,727,013
|
1,655,860
|
|||||
|
Total stockholders’ equity
|
1,943,664
|
1,839,791
|
1,857,523
|
1,837,718
|
1,766,565
|
|||||
|
Tangible common equity (non-GAAP)(1)
|
1,239,313
|
1,133,888
|
1,149,992
|
1,128,527
|
1,055,617
|
|||||
|
Key Performance Ratios
|
||||||||||
|
Annualized return on average assets
|
1.08
|
% |
(1.42
|
)% |
0.94
|
% |
0.98
|
% |
1.06
|
% |
|
Adjusted annualized return on average assets (non-GAAP)(1)
|
1.13
|
0.96
|
0.98
|
0.96
|
1.12
|
|||||
|
Annualized return on average common equity (GAAP)
|
10.90
|
(16.61
|
) |
10.47
|
11.01
|
12.43
|
||||
|
Adjusted annualized return on average common equity (non-GAAP)(1)
|
11.50
|
10.46
|
10.92
|
10.80
|
13.16
|
|||||
|
Annualized return on average tangible common equity (non-GAAP)(1)
|
16.49
|
(24.89
|
) |
16.32
|
17.31
|
20.03
|
||||
|
Adjusted annualized return on average tangible common equity (non-GAAP)(1)
|
17.38
|
16.38
|
17.02
|
17.00
|
21.17
|
|||||
|
Annualized ratio of net charge-offs/(recoveries) to average loans
|
0.08
|
0.01
|
0.12
|
0.32
|
(0.04
|
) |
||||
|
Annualized net interest margin (GAAP)
|
3.52
|
3.47
|
3.14
|
3.19
|
3.36
|
|||||
|
Annualized net interest margin, fully tax-equivalent (non-GAAP)(1)
|
3.57
|
3.52
|
3.18
|
3.23
|
3.40
|
|||||
|
Annualized cost of deposits
|
2.11
|
2.09
|
2.10
|
1.86
|
1.32
|
|||||
|
Efficiency ratio (GAAP)
|
62.46
|
293.86
|
63.77
|
60.93
|
60.94
|
|||||
|
Adjusted efficiency ratio, fully tax-equivalent (non-GAAP)(1)
|
58.77
|
59.31
|
59.95
|
59.88
|
57.16
|
|||||
|
Annualized ratio of total noninterest expenses to average assets (GAAP)
|
2.37
|
2.63
|
2.18
|
2.17
|
2.24
|
|||||
|
Annualized ratio of core expenses to average assets (non-GAAP)(1)
|
2.25
|
2.23
|
2.08
|
2.16
|
2.14
|
|||||
|
(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
|
||||||||||||||||||||
|
3/31/2024
|
12/31/2023
|
9/30/2023
|
6/30/2023
|
3/31/2023
|
||||||||||||||||
|
Common Share Data
|
||||||||||||||||||||
|
Book value per common share
|
$
|
43.66
|
$
|
42.69
|
$
|
40.20
|
$
|
41.00
|
$
|
40.38
|
||||||||||
|
Tangible book value per common share (non-GAAP)(1)
|
29.81
|
28.77
|
26.23
|
26.98
|
26.30
|
|||||||||||||||
|
ASC 320 effect on book value per common share
|
(11.18
|
) |
(11.00
|
) |
(16.27
|
) |
(14.04
|
) |
(13.35
|
) | ||||||||||
|
Common shares outstanding, net of treasury stock
|
42,783,670
|
42,688,008
|
42,656,303
|
42,644,544
|
42,558,726
|
|||||||||||||||
|
Capital Ratios
|
||||||||||||||||||||
|
Common equity ratio
|
9.76
|
% |
9.39
|
% |
8.52
|
% |
8.64
|
% |
8.52
|
% | ||||||||||
|
Tangible common equity ratio (non-GAAP)(1)
|
6.88
|
6.53
|
5.73
|
5.86
|
5.72
|
|||||||||||||||
|
Tier 1 leverage ratio
|
9.84
|
9.44
|
9.59
|
9.40
|
9.25
|
|||||||||||||||
|
Common equity tier 1 ratio(2)
|
11.40
|
10.97
|
11.37
|
11.33
|
11.28
|
|||||||||||||||
|
Total risk based capital ratio(2)
|
14.99
|
14.53
|
14.90
|
14.93
|
14.98
|
|||||||||||||||
|
Other Selected Trend Information
|
||||||||||||||||||||
|
Effective tax rate
|
23.17
|
% |
27.97
|
% |
21.89
|
% |
23.74
|
% |
22.50
|
% | ||||||||||
|
Full time equivalent employees
|
1,888
|
1,970
|
1,965
|
1,966
|
1,991
|
|||||||||||||||
|
Loans Held to Maturity
|
||||||||||||||||||||
|
Commercial and industrial
|
$
|
3,545,051
|
$
|
3,652,047
|
$
|
3,591,809
|
$
|
3,590,680
|
$
|
3,498,345
|
||||||||||
|
Paycheck Protection Program (“PPP”)
|
2,172
|
2,777
|
3,750
|
4,139
|
8,258
|
|||||||||||||||
|
Owner occupied commercial real estate
|
2,545,033
|
2,638,175
|
2,429,659
|
2,398,698
|
2,312,538
|
|||||||||||||||
|
Commercial and business lending
|
6,092,256
|
6,292,999
|
6,025,218
|
5,993,517
|
5,819,141
|
|||||||||||||||
|
Non-owner occupied commercial real estate
|
2,495,068
|
2,553,711
|
2,656,358
|
2,530,736
|
2,421,341
|
|||||||||||||||
|
Real estate construction
|
1,041,583
|
1,011,716
|
1,029,554
|
1,013,134
|
1,102,186
|
|||||||||||||||
|
Commercial real estate lending
|
3,536,651
|
3,565,427
|
3,685,912
|
3,543,870
|
3,523,527
|
|||||||||||||||
|
Total commercial lending
|
9,628,907
|
9,858,426
|
9,711,130
|
9,537,387
|
9,342,668
|
|||||||||||||||
|
Agricultural and agricultural real estate
|
809,876
|
919,184
|
842,116
|
839,817
|
810,183
|
|||||||||||||||
|
Residential mortgage
|
756,021
|
797,829
|
813,803
|
828,437
|
841,084
|
|||||||||||||||
|
Consumer
|
449,837
|
493,206
|
505,387
|
512,333
|
501,418
|
|||||||||||||||
|
Total loans held to maturity
|
$
|
11,644,641
|
$
|
12,068,645
|
$
|
11,872,436
|
$
|
11,717,974
|
$
|
11,495,353
|
||||||||||
|
Total unfunded loan commitments
|
$
|
4,537,718
|
$
|
4,625,768
|
$
|
4,813,798
|
$
|
4,905,147
|
$
|
4,867,925
|
||||||||||
|
Deposits
|
||||||||||||||||||||
|
Demand-customer
|
$
|
4,264,390
|
$
|
4,500,304
|
$
|
4,792,813
|
$
|
4,897,858
|
$
|
5,119,554
|
||||||||||
|
Savings-customer
|
8,269,956
|
8,411,240
|
8,190,430
|
8,149,596
|
8,501,337
|
|||||||||||||||
|
Savings-wholesale and institutional
|
399,265
|
394,357
|
564,481
|
623,000
|
755,272
|
|||||||||||||||
|
Total savings
|
8,669,221
|
8,805,597
|
8,754,911
|
8,772,596
|
9,256,609
|
|||||||||||||||
|
Time-customer
|
1,734,971
|
1,944,884
|
1,814,335
|
1,597,849
|
1,071,476
|
|||||||||||||||
|
Time-wholesale
|
633,584
|
950,929
|
1,738,934
|
2,395,240
|
2,233,707
|
|||||||||||||||
|
Total time
|
2,368,555
|
2,895,813
|
3,553,269
|
3,993,089
|
3,305,183
|
|||||||||||||||
|
Total deposits
|
$
|
15,302,166
|
$
|
16,201,714
|
$
|
17,100,993
|
$
|
17,663,543
|
$
|
17,681,346
|
||||||||||
|
Total customer deposits
|
$
|
14,269,317
|
$
|
14,856,428
|
$
|
14,797,578
|
$
|
14,645,303
|
$
|
14,692,367
|
||||||||||
|
Total wholesale and institutional deposits
|
1,032,849
|
1,345,286
|
2,303,415
|
3,018,240
|
2,988,979
|
|||||||||||||||
|
Total deposits
|
$
|
15,302,166
|
$
|
16,201,714
|
$
|
17,100,993
|
$
|
17,663,543
|
$
|
17,681,346
|
||||||||||
|
(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.
|
||||||||||||||||||||
|
(2) March 31, 2024 calculation is preliminary.
|
||||||||||||||||||||
|
HEARTLAND FINANCIAL USA, INC.
|
||||||||||||||||||||
|
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
|
||||||||||||||||||||
|
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
|
||||||||||||||||||||
|
As of and for the Quarter Ended
|
||||||||||||||||||||
|
3/31/2024
|
12/31/2023
|
9/30/2023
|
6/30/2023
|
3/31/2023
|
||||||||||||||||
|
Allowance for Credit Losses-Loans
|
||||||||||||||||||||
|
Balance, beginning of period
|
$
|
122,566
|
$
|
110,208
|
$
|
111,198
|
$
|
112,707
|
$
|
109,483
|
||||||||||
|
Provision for credit losses
|
3,668
|
12,750
|
2,672
|
7,829
|
2,184
|
|||||||||||||||
|
Charge-offs
|
(4,093
|
)
|
(3,886
|
)
|
(3,964
|
)
|
(9,613
|
)
|
(2,151
|
)
|
||||||||||
|
Recoveries
|
1,793
|
3,494
|
302
|
275
|
3,191
|
|||||||||||||||
|
Balance, end of period
|
$
|
123,934
|
$
|
122,566
|
$
|
110,208
|
$
|
111,198
|
$
|
112,707
|
||||||||||
|
Allowance for Unfunded Commitments
|
||||||||||||||||||||
|
Balance, beginning of period
|
$
|
16,468
|
$
|
17,480
|
$
|
18,636
|
$
|
21,086
|
$
|
20,196
|
||||||||||
|
Provision for credit losses
|
(2,682
|
)
|
(1,012
|
)
|
(1,156
|
)
|
(2,450
|
)
|
890
|
|||||||||||
|
Balance, end of period
|
$
|
13,786
|
$
|
16,468
|
$
|
17,480
|
$
|
18,636
|
$
|
21,086
|
||||||||||
|
Allowance for lending related credit losses
|
$
|
137,720
|
$
|
139,034
|
$
|
127,688
|
$
|
129,834
|
$
|
133,793
|
||||||||||
|
Provision for Credit Losses
|
||||||||||||||||||||
|
Provision for credit losses-loans
|
$
|
3,668
|
$
|
12,750
|
$
|
2,672
|
$
|
7,829
|
$
|
2,184
|
||||||||||
|
Provision (benefit) for credit losses-unfunded commitments
|
(2,682
|
)
|
(1,012
|
)
|
(1,156
|
)
|
(2,450
|
)
|
890
|
|||||||||||
|
Total provision (benefit) for credit losses
|
$
|
986
|
$
|
11,738
|
$
|
1,516
|
$
|
5,379
|
$
|
3,074
|
||||||||||
|
Asset Quality
|
||||||||||||||||||||
|
Nonaccrual loans
|
$
|
94,800
|
$
|
95,426
|
$
|
51,304
|
$
|
61,956
|
$
|
58,066
|
||||||||||
|
Loans past due ninety days or more
|
611
|
2,507
|
511
|
1,459
|
174
|
|||||||||||||||
|
Other real estate owned
|
2,590
|
12,548
|
14,362
|
2,677
|
7,438
|
|||||||||||||||
|
Other repossessed assets
|
—
|
—
|
1
|
5
|
24
|
|||||||||||||||
|
Total nonperforming assets
|
$
|
98,001
|
$
|
110,481
|
$
|
66,178
|
$
|
66,097
|
$
|
65,702
|
||||||||||
|
Nonperforming Assets Activity
|
||||||||||||||||||||
|
Balance, beginning of period
|
$
|
110,481
|
$
|
66,178
|
$
|
66,097
|
$
|
65,702
|
$
|
66,931
|
||||||||||
|
Net loan (charge-offs) recoveries
|
(2,300
|
)
|
(392
|
)
|
(3,662
|
)
|
(9,338
|
)
|
1,040
|
|||||||||||
|
New nonperforming loans
|
5,470
|
61,193
|
19,295
|
19,805
|
4,626
|
|||||||||||||||
|
Reduction of nonperforming loans(1)
|
(5,692
|
)
|
(14,278
|
)
|
(14,691
|
)
|
(5,253
|
)
|
(5,711
|
)
|
||||||||||
|
OREO/Repossessed assets sales proceeds
|
(9,958
|
)
|
(2,220
|
)
|
(861
|
)
|
(4,819
|
)
|
(1,184
|
)
|
||||||||||
|
Balance, end of period
|
$
|
98,001
|
$
|
110,481
|
$
|
66,178
|
$
|
66,097
|
$
|
65,702
|
||||||||||
|
Asset Quality Ratios
|
||||||||||||||||||||
|
Ratio of nonperforming loans to total loans
|
0.82
|
%
|
0.81
|
%
|
0.44
|
%
|
0.54
|
%
|
0.51
|
%
|
||||||||||
|
Ratio of nonperforming assets to total assets
|
0.51
|
0.57
|
0.33
|
0.33
|
0.33
|
|||||||||||||||
|
Annualized ratio of net loan charge-offs (recoveries) to average loans
|
0.08
|
0.01
|
0.12
|
0.32
|
(0.04
|
)
|
||||||||||||||
|
Allowance for loan credit losses as a percent of loans
|
1.06
|
1.02
|
0.93
|
0.95
|
0.98
|
|||||||||||||||
|
Allowance for lending related credit losses as a percent of loans
|
1.18
|
1.15
|
1.08
|
1.11
|
1.16
|
|||||||||||||||
|
Allowance for loan credit losses as a percent of nonperforming loans
|
129.89
|
125.15
|
212.70
|
175.35
|
193.52
|
|||||||||||||||
|
Loans delinquent 30-89 days as a percent of total loans
|
0.31
|
0.09
|
0.12
|
0.12
|
0.10
|
|||||||||||||||
|
(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
|
||||||||||||||||||||||||||||||||||||
|
March 31, 2024
|
December 31, 2023
|
March 31, 2023
|
||||||||||||||||||||||||||||||||||
|
Average
Balance
|
Interest
|
Rate
|
Average
Balance
|
Interest
|
Rate
|
Average
Balance
|
Interest
|
Rate
|
||||||||||||||||||||||||||||
|
Earning Assets
|
||||||||||||||||||||||||||||||||||||
|
Securities:
|
||||||||||||||||||||||||||||||||||||
|
Taxable
|
$
|
4,665,196
|
$
|
47,014
|
4.05
|
%
|
$
|
5,119,970
|
$
|
54,573
|
4.23
|
%
|
$
|
6,096,888
|
$
|
55,976
|
3.72
|
%
|
||||||||||||||||||
|
Nontaxable(1)
|
778,632
|
7,383
|
3.81
|
759,464
|
7,681
|
4.01
|
922,676
|
7,630
|
3.35
|
|||||||||||||||||||||||||||
|
Total securities
|
5,443,828
|
54,397
|
4.02
|
5,879,434
|
62,254
|
4.20
|
7,019,564
|
63,606
|
3.67
|
|||||||||||||||||||||||||||
|
Interest on deposits with other banks and short-term investments
|
253,189
|
3,006
|
4.78
|
146,027
|
2,174
|
5.91
|
105,400
|
1,131
|
4.35
|
|||||||||||||||||||||||||||
|
Federal funds sold
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||||||||
|
Loans:(2)
|
||||||||||||||||||||||||||||||||||||
|
Commercial and industrial(1)
|
3,642,588
|
66,985
|
7.40
|
3,624,034
|
66,980
|
7.33
|
3,459,317
|
49,907
|
5.85
|
|||||||||||||||||||||||||||
|
PPP loans
|
2,587
|
8
|
1.24
|
3,064
|
8
|
1.04
|
9,970
|
26
|
1.06
|
|||||||||||||||||||||||||||
|
Owner occupied commercial real estate
|
2,609,773
|
35,517
|
5.47
|
2,436,234
|
31,714
|
5.16
|
2,289,002
|
26,769
|
4.74
|
|||||||||||||||||||||||||||
|
Non-owner occupied commercial real estate
|
2,550,419
|
39,849
|
6.28
|
2,688,805
|
42,417
|
6.26
|
2,331,318
|
30,749
|
5.35
|
|||||||||||||||||||||||||||
|
Real estate construction
|
1,061,843
|
20,849
|
7.90
|
1,035,010
|
20,200
|
7.74
|
1,099,026
|
18,131
|
6.69
|
|||||||||||||||||||||||||||
|
Agricultural and agricultural real estate
|
878,621
|
13,756
|
6.30
|
844,353
|
13,069
|
6.14
|
835,648
|
11,353
|
5.51
|
|||||||||||||||||||||||||||
|
Residential real estate
|
791,248
|
10,135
|
5.15
|
810,069
|
9,531
|
4.67
|
852,561
|
9,273
|
4.41
|
|||||||||||||||||||||||||||
|
Consumer
|
484,851
|
9,201
|
7.63
|
496,703
|
9,597
|
7.67
|
501,236
|
8,242
|
6.67
|
|||||||||||||||||||||||||||
|
Less: allowance for credit losses
|
(121,879
|
)
|
—
|
—
|
(109,776
|
)
|
—
|
—
|
(110,393
|
)
|
—
|
—
|
||||||||||||||||||||||||
|
Net loans
|
11,900,051
|
196,300
|
6.63
|
11,828,496
|
193,516
|
6.49
|
11,267,685
|
154,450
|
5.56
|
|||||||||||||||||||||||||||
|
Total earning assets
|
17,597,068
|
253,703
|
5.80
|
%
|
17,853,957
|
257,944
|
5.73
|
%
|
18,392,649
|
219,187
|
4.83
|
%
|
||||||||||||||||||||||||
|
Nonearning Assets
|
1,699,570
|
1,813,868
|
1,725,356
|
|||||||||||||||||||||||||||||||||
|
Total Assets
|
$
|
19,296,638
|
$
|
19,667,825
|
$
|
20,118,005
|
||||||||||||||||||||||||||||||
|
Interest-bearing Liabilities
|
||||||||||||||||||||||||||||||||||||
|
Savings
|
$
|
8,809,530
|
$
|
54,667
|
2.50
|
%
|
$
|
8,782,197
|
$
|
53,807
|
2.43
|
%
|
$
|
9,730,494
|
$
|
37,893
|
1.58
|
%
|
||||||||||||||||||
|
Time deposits
|
2,782,195
|
29,467
|
4.26
|
3,165,788
|
34,264
|
4.29
|
2,257,047
|
19,005
|
3.41
|
|||||||||||||||||||||||||||
|
Borrowings
|
643,525
|
7,524
|
4.70
|
401,463
|
5,874
|
5.80
|
222,772
|
2,422
|
4.41
|
|||||||||||||||||||||||||||
|
Term debt
|
372,495
|
5,849
|
6.32
|
372,232
|
5,804
|
6.19
|
371,921
|
5,446
|
5.94
|
|||||||||||||||||||||||||||
|
Total interest-bearing liabilities
|
12,607,745
|
97,507
|
3.11
|
%
|
12,721,680
|
99,749
|
3.11
|
%
|
12,582,234
|
64,766
|
2.09
|
%
|
||||||||||||||||||||||||
|
Noninterest-bearing Liabilities
|
||||||||||||||||||||||||||||||||||||
|
Noninterest-bearing deposits
|
4,450,677
|
4,761,409
|
5,518,326
|
|||||||||||||||||||||||||||||||||
|
Accrued interest and other liabilities
|
294,552
|
344,945
|
250,880
|
|||||||||||||||||||||||||||||||||
|
Total noninterest-bearing liabilities
|
4,745,229
|
5,106,354
|
5,769,206
|
|||||||||||||||||||||||||||||||||
|
Stockholders’ Equity
|
1,943,664
|
1,839,791
|
1,766,565
|
|||||||||||||||||||||||||||||||||
|
Total Liabilities and Equity
|
$
|
19,296,638
|
$
|
19,667,825
|
$
|
20,118,005
|
||||||||||||||||||||||||||||||
|
Net interest income, fully tax-equivalent (non-GAAP)(1)(3)
|
$
|
156,196
|
$
|
158,195
|
$
|
154,421
|
||||||||||||||||||||||||||||||
|
Net interest spread(1)
|
2.69
|
%
|
2.62
|
%
|
2.74
|
%
|
||||||||||||||||||||||||||||||
|
Net interest income, fully tax-equivalent (non-GAAP)(1)(3) to total earning assets
|
3.57
|
%
|
3.52
|
%
|
3.40
|
%
|
||||||||||||||||||||||||||||||
|
Interest-bearing liabilities to earning assets
|
71.65
|
%
|
71.25
|
%
|
68.41
|
%
|
||||||||||||||||||||||||||||||
|
(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, EXCEPT PER SHARE DATA AND FULL TIME EQUIVALENT EMPLOYEE DATA
|
||||||||||||||||||||
|
For the Quarter Ended
|
||||||||||||||||||||
|
3/31/2024
|
12/31/2023
|
9/30/2023
|
6/30/2023
|
3/31/2023
|
||||||||||||||||
|
Reconciliation of Annualized Return on Average Tangible Common Equity (non-GAAP)
|
||||||||||||||||||||
|
Earnings available to common stockholders (GAAP)
|
$
|
49,694
|
$
|
(72,375
|
)
|
$
|
46,078
|
$
|
47,404
|
$
|
50,763
|
|||||||||
|
Plus core deposit intangibles amortization, net of tax(2)
|
1,131
|
1,229
|
1,240
|
1,309
|
1,364
|
|||||||||||||||
|
Earnings available to common stockholders excluding intangible amortization (non-GAAP)
|
$
|
50,825
|
$
|
(71,146
|
)
|
$
|
47,318
|
$
|
48,713
|
$
|
52,127
|
|||||||||
|
Average common equity (GAAP)
|
$
|
1,832,959
|
$
|
1,729,086
|
$
|
1,746,818
|
$
|
1,727,013
|
$
|
1,655,860
|
||||||||||
|
Less average goodwill
|
576,005
|
576,005
|
576,005
|
576,005
|
576,005
|
|||||||||||||||
|
Less average core deposit intangibles, net
|
17,641
|
19,193
|
20,821
|
22,481
|
24,238
|
|||||||||||||||
|
Average tangible common equity (non-GAAP)
|
$
|
1,239,313
|
$
|
1,133,888
|
$
|
1,149,992
|
$
|
1,128,527
|
$
|
1,055,617
|
||||||||||
|
Annualized return on average common equity (GAAP)
|
10.90
|
%
|
(16.61
|
)%
|
10.47
|
%
|
11.01
|
%
|
12.43
|
%
|
||||||||||
|
Annualized return on average tangible common equity (non-GAAP)
|
16.49
|
%
|
(24.89
|
)%
|
16.32
|
%
|
17.31
|
%
|
20.03
|
%
|
||||||||||
|
Reconciliation of Annualized Net Interest Margin, Fully Tax-Equivalent (non-GAAP)
|
||||||||||||||||||||
|
Net Interest Income (GAAP)
|
$
|
154,215
|
$
|
156,137
|
$
|
145,756
|
$
|
147,132
|
$
|
152,212
|
||||||||||
|
Plus tax-equivalent adjustment(1)
|
1,981
|
2,058
|
2,152
|
2,136
|
2,209
|
|||||||||||||||
|
Net interest income, fully tax-equivalent (non-GAAP)
|
$
|
156,196
|
$
|
158,195
|
$
|
147,908
|
$
|
149,268
|
$
|
154,421
|
||||||||||
|
Average earning assets
|
$
|
17,597,068
|
$
|
17,853,957
|
$
|
18,439,010
|
$
|
18,523,552
|
$
|
18,392,649
|
||||||||||
|
Annualized net interest margin (GAAP)
|
3.52
|
%
|
3.47
|
%
|
3.14
|
%
|
3.19
|
%
|
3.36
|
%
|
||||||||||
|
Annualized net interest margin, fully tax-equivalent (non-GAAP)
|
3.57
|
3.52
|
3.18
|
3.23
|
3.40
|
|||||||||||||||
|
Net purchase accounting discount amortization on loans included in annualized net interest margin
|
0.02
|
0.02
|
0.01
|
0.03
|
0.02
|
|||||||||||||||
|
Reconciliation of Tangible Book Value Per Common Share (non-GAAP)
|
||||||||||||||||||||
|
Common equity (GAAP)
|
$
|
1,868,128
|
$
|
1,822,412
|
$
|
1,714,825
|
$
|
1,748,285
|
$
|
1,718,700
|
||||||||||
|
Less goodwill
|
576,005
|
576,005
|
576,005
|
576,005
|
576,005
|
|||||||||||||||
|
Less core deposit intangibles, net
|
16,923
|
18,415
|
20,026
|
21,651
|
23,366
|
|||||||||||||||
|
Tangible common equity (non-GAAP)
|
$
|
1,275,200
|
$
|
1,227,992
|
$
|
1,118,794
|
$
|
1,150,629
|
$
|
1,119,329
|
||||||||||
|
Common shares outstanding, net of treasury stock
|
42,783,670
|
42,688,008
|
42,656,303
|
42,644,544
|
42,558,726
|
|||||||||||||||
|
Common equity (book value) per share (GAAP)
|
$
|
43.66
|
$
|
42.69
|
$
|
40.20
|
$
|
41.00
|
$
|
40.38
|
||||||||||
|
Tangible book value per common share (non-GAAP)
|
$
|
29.81
|
$
|
28.77
|
$
|
26.23
|
$
|
26.98
|
$
|
26.30
|
||||||||||
|
Reconciliation of Tangible Common Equity Ratio (non-GAAP)
|
||||||||||||||||||||
|
Tangible common equity (non-GAAP)
|
$
|
1,275,200
|
$
|
1,227,992
|
$
|
1,118,794
|
$
|
1,150,629
|
$
|
1,119,329
|
||||||||||
|
Total assets (GAAP)
|
$
|
19,132,827
|
$
|
19,411,707
|
$
|
20,129,793
|
$
|
20,224,716
|
$
|
20,182,544
|
||||||||||
|
Less goodwill
|
576,005
|
576,005
|
576,005
|
576,005
|
576,005
|
|||||||||||||||
|
Less core deposit intangibles, net
|
16,923
|
18,415
|
20,026
|
21,651
|
23,366
|
|||||||||||||||
|
Total tangible assets (non-GAAP)
|
$
|
18,539,899
|
$
|
18,817,287
|
$
|
19,533,762
|
$
|
19,627,060
|
$
|
19,583,173
|
||||||||||
|
Tangible common equity ratio (non-GAAP)
|
6.88
|
%
|
6.53
|
%
|
5.73
|
%
|
5.86
|
%
|
5.72
|
%
|
||||||||||
|
(1) Computed on a tax-equivalent basis using an effective tax rate of 21%.
|
||||||||||||||||||||
|
(2) Tax effect is calculated based on the respective periods’ year-to-date effective tax rate excluding the impact of discrete items.
|
||||||||||||||||||||
|
HEARTLAND FINANCIAL USA, INC.
|
||||||||||||||||||||
|
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
|
||||||||||||||||||||
|
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
|
||||||||||||||||||||
|
For the Quarter Ended
|
||||||||||||||||||||
|
3/31/2024
|
12/31/2023
|
9/30/2023
|
6/30/2023
|
3/31/2023
|
||||||||||||||||
|
Reconciliation of Adjusted Efficiency Ratio, fully tax-equivalent (non-GAAP)
|
||||||||||||||||||||
|
Net interest income (GAAP)
|
$
|
154,215
|
$
|
156,137
|
$
|
145,756
|
$
|
147,132
|
$
|
152,212
|
||||||||||
|
Tax-equivalent adjustment(1)
|
1,981
|
2,058
|
2,152
|
2,136
|
2,209
|
|||||||||||||||
|
Fully tax-equivalent net interest income
|
156,196
|
158,195
|
147,908
|
149,268
|
154,421
|
|||||||||||||||
|
Noninterest income
|
27,663
|
(111,801
|
)
|
28,383
|
32,493
|
29,999
|
||||||||||||||
|
Securities (gains)/losses, net
|
(58
|
)
|
140,007
|
114
|
314
|
1,104
|
||||||||||||||
|
Unrealized (gain) loss on equity securities, net
|
(95
|
)
|
(75
|
)
|
(13
|
)
|
41
|
(193
|
)
|
|||||||||||
|
Valuation adjustment on servicing rights
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
|
Adjusted revenue (non-GAAP)
|
$
|
183,706
|
$
|
186,326
|
$
|
176,392
|
$
|
182,116
|
$
|
185,331
|
||||||||||
|
Total noninterest expenses (GAAP)
|
$
|
113,595
|
$
|
130,285
|
$
|
111,053
|
$
|
109,446
|
$
|
111,043
|
||||||||||
|
Less:
|
||||||||||||||||||||
|
Core deposit intangibles amortization
|
1,492
|
1,611
|
1,625
|
1,715
|
1,788
|
|||||||||||||||
|
Partnership investment in tax credit projects
|
494
|
3,573
|
1,136
|
154
|
538
|
|||||||||||||||
|
(Gain) loss on sales/valuation of assets, net
|
214
|
2,072
|
108
|
(3,372
|
)
|
1,115
|
||||||||||||||
|
Acquisition, integration and restructuring costs
|
1,375
|
4,365
|
2,429
|
1,892
|
1,673
|
|||||||||||||||
|
FDIC special assessment
|
2,049
|
8,145
|
—
|
—
|
—
|
|||||||||||||||
|
Core expenses (non-GAAP)
|
$
|
107,971
|
$
|
110,519
|
$
|
105,755
|
$
|
109,057
|
$
|
105,929
|
||||||||||
|
Efficiency ratio (GAAP)
|
62.46
|
%
|
293.86
|
%
|
63.77
|
%
|
60.93
|
%
|
60.94
|
%
|
||||||||||
|
Adjusted efficiency ratio, fully tax-equivalent (non-GAAP)
|
58.77
|
%
|
59.31
|
%
|
59.95
|
%
|
59.88
|
%
|
57.16
|
%
|
||||||||||
|
Reconciliation of Annualized Ratio of Core Expenses to Average Assets (non-GAAP)
|
||||||||||||||||||||
|
Total noninterest expenses (GAAP)
|
$
|
113,595
|
$
|
130,285
|
$
|
111,053
|
$
|
109,446
|
$
|
111,043
|
||||||||||
|
Core expenses (non-GAAP)
|
107,971
|
110,519
|
105,755
|
109,057
|
105,929
|
|||||||||||||||
|
Average assets
|
$
|
19,296,638
|
$
|
19,667,825
|
$
|
20,207,920
|
$
|
20,221,511
|
$
|
20,118,005
|
||||||||||
|
Total noninterest expenses to average assets (GAAP)
|
2.37
|
%
|
2.63
|
%
|
2.18
|
%
|
2.17
|
%
|
2.24
|
%
|
||||||||||
|
Core expenses to average assets (non-GAAP)
|
2.25
|
%
|
2.23
|
%
|
2.08
|
%
|
2.16
|
%
|
2.14
|
%
|
||||||||||
|
Acquisition, integration and restructuring costs
|
||||||||||||||||||||
|
Salaries and employee benefits
|
$
|
168
|
$
|
1,425
|
$
|
94
|
$
|
93
|
$
|
74
|
||||||||||
|
Occupancy
|
—
|
1,092
|
—
|
—
|
—
|
|||||||||||||||
|
Furniture and equipment
|
—
|
19
|
—
|
—
|
—
|
|||||||||||||||
|
Professional fees
|
931
|
793
|
1,617
|
1,068
|
934
|
|||||||||||||||
|
Advertising
|
—
|
28
|
178
|
222
|
122
|
|||||||||||||||
|
Other noninterest expenses
|
276
|
1,008
|
540
|
509
|
543
|
|||||||||||||||
|
Total acquisition, integration and restructuring costs
|
$
|
1,375
|
$
|
4,365
|
$
|
2,429
|
$
|
1,892
|
$
|
1,673
|
||||||||||
|
(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
|
||||||||||||||||||||
|
3/31/2024
|
12/31/2023
|
9/30/2023
|
6/30/2023
|
3/31/2023
|
||||||||||||||||
|
Reconciliation of Adjusted Earnings
|
||||||||||||||||||||
|
Net income/(loss)
|
$
|
51,707
|
$
|
(70,363
|
)
|
$
|
48,091
|
$
|
49,416
|
$
|
52,776
|
|||||||||
|
(Gain) loss from sale of securities
|
(58
|
)
|
140,007
|
114
|
314
|
1,104
|
||||||||||||||
|
(Gain) loss on sales/valuation of assets, net
|
214
|
2,072
|
108
|
(3,372
|
)
|
1,115
|
||||||||||||||
|
Acquisition, integration and restructuring costs
|
1,375
|
4,365
|
2,429
|
1,892
|
1,673
|
|||||||||||||||
|
FDIC special assessment
|
2,049
|
8,145
|
—
|
—
|
—
|
|||||||||||||||
|
Total adjustments
|
3,580
|
154,589
|
2,651
|
(1,166
|
)
|
3,892
|
||||||||||||||
|
Tax effect of adjustments(2)
|
(866
|
)
|
(36,638
|
)
|
(628
|
)
|
276
|
(922
|
)
|
|||||||||||
|
Adjusted earnings
|
$
|
54,421
|
$
|
47,588
|
$
|
50,114
|
$
|
48,526
|
$
|
55,746
|
||||||||||
|
Preferred dividends
|
(2,013
|
)
|
(2,012
|
)
|
(2,013
|
)
|
(2,012
|
)
|
(2,013
|
)
|
||||||||||
|
Adjusted earnings available to common stockholders
|
$
|
52,408
|
$
|
45,576
|
$
|
48,101
|
$
|
46,514
|
$
|
53,733
|
||||||||||
|
Plus core deposit intangibles amortization, net of tax(2)
|
1,131
|
1,229
|
1,240
|
1,309
|
1,364
|
|||||||||||||||
|
Earnings available to common stockholders excluding intangible amortization (non-GAAP)
|
$
|
53,539
|
$
|
46,805
|
$
|
49,341
|
$
|
47,823
|
$
|
55,097
|
||||||||||
|
Reconciliation of Adjusted Annualized Return on Average Assets
|
||||||||||||||||||||
|
Average assets
|
$
|
19,296,638
|
$
|
19,667,825
|
$
|
20,207,920
|
$
|
20,221,511
|
$
|
20,118,005
|
||||||||||
|
Adjusted annualized return on average assets (non-GAAP)
|
1.13
|
%
|
0.96
|
%
|
0.98
|
%
|
0.96
|
%
|
1.12
|
%
|
||||||||||
|
Reconciliation of Adjusted Annualized Return on Average Common Equity
|
||||||||||||||||||||
|
Average common stockholders’ equity (GAAP)
|
$
|
1,832,959
|
$
|
1,729,086
|
$
|
1,746,818
|
$
|
1,727,013
|
$
|
1,655,860
|
||||||||||
|
Adjusted annualized average common equity (non-GAAP)
|
11.50
|
%
|
10.46
|
%
|
10.92
|
%
|
10.80
|
%
|
13.16
|
%
|
||||||||||
|
Reconciliation of Adjusted Annualized Return on Average Tangible Common Equity
|
||||||||||||||||||||
|
Average tangible common equity (non-GAAP)
|
$
|
1,239,313
|
$
|
1,133,888
|
$
|
1,149,992
|
$
|
1,128,527
|
$
|
1,055,617
|
||||||||||
|
Adjusted annualized average tangible common equity (non-GAAP)
|
17.38
|
%
|
16.38
|
%
|
17.02
|
%
|
17.00
|
%
|
21.17
|
%
|
||||||||||
|
Reconciliation of Adjusted Diluted Earnings Per Common Share
|
||||||||||||||||||||
|
Weighted average shares outstanding-diluted
|
42,915,768
|
42,838,405
|
42,812,563
|
42,757,603
|
42,742,878
|
|||||||||||||||
|
Adjusted diluted earnings per common share
|
$
|
1.22
|
$
|
1.06
|
$
|
1.12
|
$
|
1.09
|
$
|
1.26
|
||||||||||
|
(1) Computed on a tax-equivalent basis using an effective tax rate of 21%.
|
||||||||||||||||||||
|
(2) Tax effect is calculated based on the respective periods’ year-to-date effective tax rate excluding the impact of discrete items.
|
||||||||||||||||||||