Heartland Financial USA, Inc. (NASDAQ: HTLF) today
reported the following results for the quarter ended June 30, 2023,
compared to the quarter ended June 30, 2022:
- Net income available to common
stockholders of $47.4 million compared to $49.9 million, a decrease
of $2.5 million or 5%.
- Earnings per diluted common share
of $1.11 compared to $1.17, a decrease of $0.06 or 5%.
- Net interest income of $147.1
million compared to $142.5 million, an increase of $4.7 million or
3%.
- Total revenue growth of $2.6
million or 1% to $179.6 million compared to $177.0 million.
- Return on average assets was 0.98%
compared to 1.06%.
- Return on average common equity was
11.01% compared to 11.55%.
- Return on average tangible common
equity (non-GAAP) was 17.33% compared to 18.35%.
"HTLF's strength and diverse geography enabled
us to continue executing on our strategic priorities despite recent
industry challenges. We were pleased with our strong loan growth
and new customer relationships. Our stable deposit base and growth
strategies give us momentum heading into the second half of the
year," said Bruce K. Lee, president and chief executive officer of
HTLF.
HTLF report the following results for the six
months ended June 30, 2023, compared to the six months ended June
30, 2022:
- Net income available to common
stockholders of $98.2 million compared to $90.9 million, an
increase of $7.2 million or 8%.
- Earnings per diluted common share
of $2.30 compared to $2.14, an increase of $0.16 or 7%.
- Net interest income of $299.3
million compared to $277.1 million, an increase of $22.2 million or
8%.
- Total revenue of $361.8 million
compared to $346.2 million, an increase of $15.6 million or
5%.
- Return on average assets was 1.02%
compared to 0.99%.
- Return on average common equity was
11.70% compared to 9.82%.
- Return on average tangible common
equity (non-GAAP) was 18.63% compared to 15.08%.
Charter Consolidation
Update
During the second quarter of 2023, Bank of Blue
Valley and First Bank & Trust were consolidated into HTLF Bank.
Subsequent to June 30, 2023, Rocky Mountain Bank was consolidated
into HTLF Bank. Citywide Banks, Premier Valley Bank, Minnesota Bank
& Trust, Arizona Bank & Trust, Illinois Bank & Trust,
Wisconsin Bank & Trust, Bank of Blue Valley, First Bank &
Trust and Rocky Mountain Bank are now operating as divisions of
HTLF Bank. The two remaining charters are expected to be
consolidated by the end of October 2023. Charter consolidation
follows a template that retains the current brands, local
leadership and local decision making.
Total consolidation restructuring costs are
projected to be $19-$20 million with approximately $6-$7 million of
expenses remaining to be incurred in 2023. Charter consolidation is
designed to eliminate redundancies and improve HTLF’s operating
efficiency and capacity to support ongoing product and service
enhancements, as well as current and future growth. HTLF realized
some operating efficiency and financial benefits in the second half
of 2022 and first half of 2023 with the completion of nine charter
consolidations, and total benefits are estimated to be
approximately $20 million annually after the project is
completed.
Recent Developments
As of March 29, 2023, HTLF's subsidiary, Dubuque
Bank & Trust, entered into an agreement to sell and transfer
the recordkeeping and administration services component of HTLF’s
Retirement Plan Services business to July Business Services
("July"). Through the new partnership with July, HTLF will augment
the comprehensive retirement plan solutions offered to clients with
enhanced technology and an expanded suite of product offerings that
clients expect from a top retirement services provider. The
transaction was completed and recordkeeping and administration
services were transferred in the second quarter of 2023. The
transaction resulted in a gain of $4.3 million.
On March 31, 2023, HTLF's division, First Bank
& Trust, closed on the sale of its mortgage servicing rights
portfolio, which consisted of approximately 4,500 loans serviced
for others with an unpaid principal balance of approximately $700
million. In the agreement, which includes customary terms and
conditions, First Bank & Trust provided interim servicing of
the loans until the transfer date in May 2023.
Net Interest Income and Net Interest
Margin
Net interest margin, expressed as a percentage
of average earning assets, was 3.19% (3.24% on a fully
tax-equivalent basis, non-GAAP) for the second quarter of 2023
compared to 3.36% (3.40% on a fully tax-equivalent basis, non-GAAP)
for the first quarter of 2023, and 3.18% (3.22% on a fully
tax-equivalent basis, non-GAAP) for the second quarter of 2022.
Total interest income and average earning asset
changes for the second quarter of 2023 compared to the second
quarter of 2022 were:
- Total interest income was $235.5
million compared to $152.9 million, an increase of $82.6 million or
54% primarily attributable to an increase in average earning assets
and higher yields.
- Total interest income on a
tax-equivalent basis (non-GAAP) was $237.8 million, an increase of
$83.0 million or 54% from $154.9 million.
- Average earning assets increased
$535.8 million or 3% to $18.52 billion compared to $17.99
billion.
- The average rate on earning assets
increased 170 basis points to 5.15% from 3.45%, primarily due to
recent interest rate increases.
Total interest expense and average interest
bearing liability changes for the second quarter of 2023 compared
to the second quarter of 2022 were:
- Total interest expense was $88.4
million, an increase of $77.9 million from $10.4 million, due to
increases in the average interest rate paid and average interest
bearing liabilities.
- The average interest rate paid on
interest bearing liabilities increased 232 basis points to 2.68%
compared to 0.36%.
- Average interest bearing deposits
increased $1.66 billion or 15% to $12.75 billion from $11.08
billion, primarily due to an increase of $1.94 billion in wholesale
deposits.
- The average interest rate paid on
interest bearing deposits increased 234 basis points to 2.58%
compared to 0.24%.
- Average borrowings decreased $29.4
million or 6% to $461.7 million from $491.1 million, and the
average interest rate paid on borrowings was 5.55% compared to
3.18%.
Net interest income changes for the second
quarter of 2023 compared to the second quarter of 2022 were:
- Net interest income totaled $147.1
million compared to $142.5 million, an increase of $4.7 million or
3%.
- Net interest income on a
tax-equivalent basis (non-GAAP) totaled $149.4 million compared to
$144.4 million, an increase of $5.0 million or 3%.
Noninterest Income and Noninterest
Expense
Total noninterest income was $32.5 million
during the second quarter of 2023 compared to $34.5 million during
the second quarter of 2022, a decrease of $2.0 million or 6%.
Significant changes within the noninterest income category for the
second quarter of 2023 compared to the second quarter of 2022
were:
- Service charges and fees increased
$1.6 million or 9% to $19.6 million from $18.1 million.
- Net security losses totaled
$314,000 compared to net losses of $2.1 million.
- Net gains on sales of loans held
for sale decreased $1.9 million or 64% to $1.1 million from $2.9
million, primarily attributable to a decrease in loans sold to the
secondary market.
- Other noninterest income decreased
$2.6 million or 87% to $407,000 compared to $3.0 million. Included
in other noninterest income for the second quarter of 2022 was a
gain of $1.9 million on the sale of VISA Class B shares.
Total noninterest expense was $109.4 million
during the second quarter of 2023 compared to $106.5 million during
the second quarter of 2022, which was an increase of $3.0 million
or 3%. Significant changes within the noninterest expense category
for the second quarter of 2023 compared to the second quarter of
2022 were:
- Salaries and employee benefits
totaled $62.1 million compared to $64.0 million, a decrease of $1.9
million or 3%. The decrease was primarily due to a reduction of
full-time equivalent employees and lower incentive compensation
expense. Full-time equivalent employees totaled 1,966 compared to
2,087, a decrease of 121 or 6%.
- Other noninterest expenses totaled
$15.6 million compared to $13.0 million, an increase of $2.6
million or 20%. Credit card expenses increased $909,000 or 27% to
$4.3 million from $3.4 million. Fraud losses increased $739,000 to
$948,000 from $209,000.
- FDIC insurance assessments totaled
$3.0 million compared to $1.5 million, an increase of $1.5 million
due to assessment rate changes that were effective with the first
quarter 2023 assessment.
- Acquisition, integration and
restructuring costs totaled $1.9 million compared to $2.4 million,
a decrease of $520,000 primarily due to reduced charter
consolidation expenses.
The effective tax rate was 23.74% for the second
quarter of 2023 compared to 22.89% for the second quarter of 2022.
The following items impacted the second quarter 2023 and 2022 tax
calculations:
- Various tax credits of $568,000
compared to $975,000.
- Tax expense of $1,086,000 compared
to $109,000 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 12.40% compared to 11.05%.
Total Assets, Total Loans and Total
Deposits
Total assets were $20.22 billion at June 30,
2023, a decrease of $19.5 million or less than 1% from $20.24
billion at year-end 2022. Securities represented 33% and 35% of
total assets at June 30, 2023, and December 31, 2022,
respectively.
Total loans held to maturity were $11.72 billion
at June 30, 2023, compared to $11.50 billion at March 31, 2023, and
$11.43 billion at December 31, 2022, representing increases of
$222.6 million or 2%, and $289.6 million or 3%, respectively.
Significant changes by loan category at June 30,
2023 compared to March 31, 2023 included:
- Commercial and business lending,
which includes commercial and industrial, PPP and owner occupied
commercial real estate loans, increased $174.4 million or 3% to
$5.99 billion compared to $5.82 billion.
- Commercial real estate lending,
which includes non-owner occupied commercial real estate and
construction loans, increased $20.3 million or 1% to $3.54 billion
compared to $3.52 billion.
- Agricultural and agricultural real
estate loans increased $29.6 million or 4% to $839.8 million from
$810.2 million.
Significant changes by loan category at June 30,
2023 compared to December 31, 2022 included:
- Commercial and business lending,
which includes commercial and industrial, PPP and owner occupied
commercial real estate loans, increased $252.8 million or 4% to
$5.99 billion compared to $5.74 billion.
- Commercial real estate lending,
which includes non-owner occupied commercial real estate and
construction loans, increased $136.8 million or 4% to $3.54 billion
compared to $3.41 billion.
- Agricultural and agricultural real
estate loans decreased $80.7 million or 9% to $839.8 million
compared to $920.5 million.
- Residential real estate loans
decreased $24.9 million or 3% to $828.4 million compared to $853.4
million.
Total deposits were $17.66 billion as of June
30, 2023, compared to $17.68 billion at March 31, 2023, which was a
decrease of $17.8 million or less than 1%. Total deposits were
$17.66 billion as of June 30, 2023, compared to $17.51 billion at
December 31, 2022, an increase of $150.5 million or 1%.
Total customer deposits were $14.65 billion as
of June 30, 2023 compared to $14.69 billion at March 31, 2023,
which was a decrease of $47.1 million or less than 1%. During the
second quarter of 2023, nearly 1,300 net new commercial deposit
accounts and over 1,400 net new consumer deposit accounts were
opened. Significant deposit changes by category at June 30, 2023,
compared to March 31, 2023, included:
- Customer demand deposits decreased
$221.7 million or 4% to $4.90 billion compared to $5.12
billion.
- Customer savings deposits decreased
$351.7 million or 4% to $8.15 billion compared to $8.50
billion.
- Customer time deposits increased
$526.4 million or 49% to $1.60 billion compared to $1.07
billion.
Total customer deposits were $14.65 billion at
June 30, 2023 compared to $15.22 billion at December 31, 2022,
which was a decrease of $578.5 million or 4%. Significant deposit
changes by category at June 30, 2023 compared to December 31, 2022,
included:
- Customer demand deposits decreased
$803.5 million or 14% to $4.90 billion compared to $5.70
billion.
- Customer savings deposits decreased
$521.3 million or 6% to $8.15 billion compared to $8.67
billion.
- Customer time deposits increased
$746.3 million or 88% to $1.60 billion compared to $851.5
million.
Total wholesale and institutional deposits were
$3.02 billion as of June 30, 2023, which was an increase of $29.3
million or 1% from $2.99 billion at March 31, 2023. Significant
deposit changes by category at June 30, 2023, compared to March 31,
2023, included:
- Wholesale and institutional savings
deposits decreased $132.3 million or 18% to $623.0 million compared
to $755.3 million.
- Wholesale time deposits increased
$161.5 million or 7% to $2.40 billion compared to $2.23
billion.
Total wholesale deposits were $3.02 billion as
of June 30, 2023, which was an increase of $729.0 million or 32%
from $2.29 billion at December 31, 2022. Significant deposit
changes by category at June 30, 2023 compared to December 31, 2022
included:
- Wholesale and institutional savings
deposits decreased $700.5 million or 53% to $623.0 million compared
to $1.32 billion.
- Wholesale time deposits increased
$1.43 billion to $2.40 billion compared to $965.7 million.
Provision and Allowance
Provision and Allowance for Credit Losses for
Loans Provision for credit losses for loans for the second quarter
of 2023 was $7.8 million, which was an increase of $6.3 million
from $1.5 million recorded in the second quarter of 2022. The
provision expense for the second quarter of 2023 was impacted by a
$5.3 million charge-off related to an overdraft, the result of a
fraud incident impacting the account of a single long-term
customer.
The allowance for credit losses for loans
totaled $111.2 million and $109.5 million at June 30, 2023, and
December 31, 2022, respectively. Management continued to utilize a
macroeconomic outlook which anticipated a moderate recession
developing within the next twelve months. The following items
impacted the allowance for credit losses for loans at June 30,
2023:
- Provision expense for the six
months ended June 30, 2023, totaled $10.0 million.
- Net charge-offs of $8.3 million
were recorded for the first six months of 2023.
Provision and Allowance for Credit Losses for
Unfunded Commitments The allowance for unfunded commitments
decreased $1.6 million or 8% to $18.6 million at June 30, 2023,
from $20.2 million at December 31, 2022, primarily due to a
reduction of $164.2 million in unfunded commitments for
construction loans, which carry the highest loss rate. Total
unfunded commitments increased $175.5 million or 4% to $4.91
billion at June 30, 2023 compared to $4.73 billion at December 31,
2022.
Total Provision and Allowance for Lending
Related Credit LossesThe total provision expense for lending
related credit losses was $5.4 million for the second quarter of
2023 compared to $3.2 million for the second quarter of 2022. The
total allowance for lending related credit losses was $129.8
million or 1.11% of total loans at June 30, 2023, compared to
$129.7 million or 1.13% of total loans as of December 31, 2022.
Nonperforming Assets
Nonperforming assets decreased $834,000 or 1% to
$66.1 million or 0.33% of total assets at June 30, 2023, compared
to $66.9 million or 0.33% of total assets at December 31, 2022.
Nonperforming loans were $63.4 million or 0.54% of total loans at
June 30, 2023, compared to $58.5 million or 0.51% of total loans at
December 31, 2022. At June 30, 2023, loans delinquent 30-89 days
were 0.12% of total loans compared to 0.04% of total loans at
December 31, 2022.
Non-GAAP Financial MeasuresThis
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. 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.
- 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.
- 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 tangible common equity
ratio is total common equity less goodwill, core deposit and
customer relationship intangibles, net, and accumulated other
comprehensive loss 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 excluding the
variability of accumulated other comprehensive income (loss).
- 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.
- 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.
Conference Call DetailsHTLF
will host a conference call for shareholders, analysts and other
interested parties at 5:00 p.m. EDT today. To join via webcast,
please visit
https://ir.htlf.com/news-and-events/event-calendar/default.aspx 10
minutes prior to the call. A replay will be available until July
30, 2024, by logging on to www.htlf.com.
About HTLFHeartland Financial
USA, Inc., is a Denver, Colorado-based bank holding company
operating under the brand name HTLF, with assets of $20.22 billion
as of June 30, 2023. HTLF's banks serves 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 StatementThis
release (including any information incorporated herein by
reference) and future oral and written statements of HTLF 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 HTLF'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 HTLF's operations or performance, and
may be based upon beliefs, expectations and assumptions of HTLF's
management. These forward-looking statements are generally
identified by the use of the words such as "believe", "expect",
"anticipate", "plan", "intend", "estimate", "project", "may",
"will", "would", "could", "should", "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 HTLF and its management. Although HTLF may make these
statements based on management’s experience, beliefs, expectations,
assumptions and best estimate of future events, the ability of HTLF
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 HTLF 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
HTLF’s Annual Report on Form 10-K for the year ended December 31,
2022, 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, such as the COVID-19 pandemic or future pandemics and
governmental measures addressing them, climate change and
climate-related regulations, persistent inflation, higher interest
rates, recession, 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 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, 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 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 Securities and Exchange
Commission (the "SEC").
-FINANCIAL TABLES FOLLOW-
| |
| HEARTLAND
FINANCIAL USA, INC. |
|
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
| DOLLARS
IN THOUSANDS, EXCEPT PER SHARE DATA |
|
|
|
For the Quarter EndedJune
30, |
|
For the Six Months EndedJune
30, |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Interest Income |
|
|
|
|
|
|
|
|
| Interest and fees on
loans |
|
$ |
168,899 |
|
|
$ |
108,718 |
|
|
$ |
322,742 |
|
|
$ |
211,087 |
|
| Interest on securities: |
|
|
|
|
|
|
|
|
|
Taxable |
|
|
58,172 |
|
|
|
38,098 |
|
|
|
114,148 |
|
|
|
70,718 |
|
|
Nontaxable |
|
|
6,378 |
|
|
|
5,508 |
|
|
|
12,406 |
|
|
|
11,710 |
|
| Interest on federal funds
sold |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Interest on deposits with
other banks and short-term investments |
|
|
2,051 |
|
|
|
563 |
|
|
|
3,182 |
|
|
|
634 |
|
| Total Interest
Income |
|
|
235,500 |
|
|
|
152,887 |
|
|
|
452,478 |
|
|
|
294,149 |
|
| Interest
Expense |
|
|
|
|
|
|
|
|
| Interest on deposits |
|
|
81,975 |
|
|
|
6,530 |
|
|
|
138,873 |
|
|
|
9,507 |
|
| Interest on short-term
borrowings |
|
|
848 |
|
|
|
88 |
|
|
|
3,270 |
|
|
|
134 |
|
| Interest on other
borrowings |
|
|
5,545 |
|
|
|
3,808 |
|
|
|
10,991 |
|
|
|
7,368 |
|
| Total Interest
Expense |
|
|
88,368 |
|
|
|
10,426 |
|
|
|
153,134 |
|
|
|
17,009 |
|
| Net Interest
Income |
|
|
147,132 |
|
|
|
142,461 |
|
|
|
299,344 |
|
|
|
277,140 |
|
| Provision for credit
losses |
|
|
5,379 |
|
|
|
3,246 |
|
|
|
8,453 |
|
|
|
6,491 |
|
| Net Interest Income
After Provision for Credit Losses |
|
|
141,753 |
|
|
|
139,215 |
|
|
|
290,891 |
|
|
|
270,649 |
|
| Noninterest
Income |
|
|
|
|
|
|
|
|
| Service charges and fees |
|
|
19,627 |
|
|
|
18,066 |
|
|
|
36,763 |
|
|
|
33,317 |
|
| Loan servicing income |
|
|
411 |
|
|
|
834 |
|
|
|
1,125 |
|
|
|
1,120 |
|
| Trust fees |
|
|
5,419 |
|
|
|
5,679 |
|
|
|
11,076 |
|
|
|
11,758 |
|
| Brokerage and insurance
commissions |
|
|
677 |
|
|
|
839 |
|
|
|
1,373 |
|
|
|
1,708 |
|
| Capital markets fees |
|
|
4,037 |
|
|
|
4,871 |
|
|
|
6,486 |
|
|
|
7,910 |
|
| Securities gains/(losses),
net |
|
|
(314 |
) |
|
|
(2,089 |
) |
|
|
(1,418 |
) |
|
|
783 |
|
| Unrealized gain/(loss) on
equity securities, net |
|
|
(41 |
) |
|
|
(121 |
) |
|
|
152 |
|
|
|
(404 |
) |
| Net gains on sale of loans
held for sale |
|
|
1,050 |
|
|
|
2,901 |
|
|
|
2,881 |
|
|
|
6,312 |
|
| Valuation adjustment on
servicing rights |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,658 |
|
| Income on bank owned life
insurance |
|
|
1,220 |
|
|
|
523 |
|
|
|
2,184 |
|
|
|
1,047 |
|
| Other noninterest income |
|
|
407 |
|
|
|
3,036 |
|
|
|
1,870 |
|
|
|
3,899 |
|
| Total Noninterest
Income |
|
|
32,493 |
|
|
|
34,539 |
|
|
|
62,492 |
|
|
|
69,108 |
|
| Noninterest
Expense |
|
|
|
|
|
|
|
|
| Salaries and employee
benefits |
|
|
62,099 |
|
|
|
64,032 |
|
|
|
124,248 |
|
|
|
130,206 |
|
| Occupancy |
|
|
6,691 |
|
|
|
7,094 |
|
|
|
13,900 |
|
|
|
14,456 |
|
| Furniture and equipment |
|
|
3,063 |
|
|
|
3,033 |
|
|
|
5,978 |
|
|
|
6,552 |
|
| Professional fees |
|
|
15,194 |
|
|
|
14,457 |
|
|
|
27,991 |
|
|
|
27,997 |
|
| FDIC insurance
assessments |
|
|
3,035 |
|
|
|
1,530 |
|
|
|
6,314 |
|
|
|
3,146 |
|
| Advertising |
|
|
3,052 |
|
|
|
1,283 |
|
|
|
5,037 |
|
|
|
2,838 |
|
| Core deposit and customer
relationship intangibles amortization |
|
|
1,715 |
|
|
|
2,083 |
|
|
|
3,503 |
|
|
|
4,137 |
|
| Other real estate and loan
collection expenses, net |
|
|
348 |
|
|
|
78 |
|
|
|
503 |
|
|
|
273 |
|
| (Gain)/loss on
sales/valuations of assets, net |
|
|
(3,372 |
) |
|
|
(3,230 |
) |
|
|
(2,257 |
) |
|
|
(3,184 |
) |
| Acquisition, integration and
restructuring costs |
|
|
1,892 |
|
|
|
2,412 |
|
|
|
3,565 |
|
|
|
2,988 |
|
| Partnership investment in tax
credit projects |
|
|
154 |
|
|
|
737 |
|
|
|
692 |
|
|
|
814 |
|
| Other noninterest
expenses |
|
|
15,575 |
|
|
|
12,970 |
|
|
|
31,015 |
|
|
|
27,053 |
|
| Total Noninterest
Expense |
|
|
109,446 |
|
|
|
106,479 |
|
|
|
220,489 |
|
|
|
217,276 |
|
| Income Before Income
Taxes |
|
|
64,800 |
|
|
|
67,275 |
|
|
|
132,894 |
|
|
|
122,481 |
|
| Income taxes |
|
|
15,384 |
|
|
|
15,402 |
|
|
|
30,702 |
|
|
|
27,519 |
|
| Net
Income |
|
|
49,416 |
|
|
|
51,873 |
|
|
|
102,192 |
|
|
|
94,962 |
|
| Preferred dividends |
|
|
(2,012 |
) |
|
|
(2,012 |
) |
|
|
(4,025 |
) |
|
|
(4,025 |
) |
| Net Income Available
to Common Stockholders |
|
$ |
47,404 |
|
|
$ |
49,861 |
|
|
$ |
98,167 |
|
|
$ |
90,937 |
|
| Earnings per common
share-diluted |
|
$ |
1.11 |
|
|
$ |
1.17 |
|
|
$ |
2.30 |
|
|
$ |
2.14 |
|
| Weighted average
shares outstanding-diluted |
|
|
42,757,603 |
|
|
|
42,565,391 |
|
|
|
42,753,197 |
|
|
|
42,562,639 |
|
| HEARTLAND
FINANCIAL USA, INC. |
|
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
| DOLLARS
IN THOUSANDS, EXCEPT PER SHARE DATA |
|
|
|
For the Quarter Ended |
|
|
|
6/30/2023 |
|
3/31/2023 |
|
12/31/2022 |
|
9/30/2022 |
|
6/30/2022 |
|
Interest Income |
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
|
$ |
168,899 |
|
|
$ |
153,843 |
|
|
$ |
143,970 |
|
|
$ |
122,913 |
|
|
$ |
108,718 |
|
| Interest on securities: |
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
58,172 |
|
|
|
55,976 |
|
|
|
53,178 |
|
|
|
45,648 |
|
|
|
38,098 |
|
|
Nontaxable |
|
|
6,378 |
|
|
|
6,028 |
|
|
|
6,132 |
|
|
|
6,164 |
|
|
|
5,508 |
|
| Interest on federal funds
sold |
|
|
— |
|
|
|
— |
|
|
|
11 |
|
|
|
— |
|
|
|
— |
|
| Interest on deposits with
other banks and short-term investments |
|
|
2,051 |
|
|
|
1,131 |
|
|
|
1,410 |
|
|
|
1,081 |
|
|
|
563 |
|
| Total Interest
Income |
|
|
235,500 |
|
|
|
216,978 |
|
|
|
204,701 |
|
|
|
175,806 |
|
|
|
152,887 |
|
| Interest
Expense |
|
|
|
|
|
|
|
|
|
|
| Interest on deposits |
|
|
81,975 |
|
|
|
56,898 |
|
|
|
32,215 |
|
|
|
15,158 |
|
|
|
6,530 |
|
| Interest on short-term
borrowings |
|
|
848 |
|
|
|
2,422 |
|
|
|
2,223 |
|
|
|
360 |
|
|
|
88 |
|
| Interest on other
borrowings |
|
|
5,545 |
|
|
|
5,446 |
|
|
|
5,043 |
|
|
|
4,412 |
|
|
|
3,808 |
|
| Total Interest
Expense |
|
|
88,368 |
|
|
|
64,766 |
|
|
|
39,481 |
|
|
|
19,930 |
|
|
|
10,426 |
|
| Net Interest
Income |
|
|
147,132 |
|
|
|
152,212 |
|
|
|
165,220 |
|
|
|
155,876 |
|
|
|
142,461 |
|
| Provision for credit
losses |
|
|
5,379 |
|
|
|
3,074 |
|
|
|
3,387 |
|
|
|
5,492 |
|
|
|
3,246 |
|
| Net Interest Income
After Provision for Credit Losses |
|
|
141,753 |
|
|
|
149,138 |
|
|
|
161,833 |
|
|
|
150,384 |
|
|
|
139,215 |
|
| Noninterest
Income |
|
|
|
|
|
|
|
|
|
|
| Service charges and fees |
|
|
19,627 |
|
|
|
17,136 |
|
|
|
17,432 |
|
|
|
17,282 |
|
|
|
18,066 |
|
| Loan servicing income |
|
|
411 |
|
|
|
714 |
|
|
|
790 |
|
|
|
831 |
|
|
|
834 |
|
| Trust fees |
|
|
5,419 |
|
|
|
5,657 |
|
|
|
5,440 |
|
|
|
5,372 |
|
|
|
5,679 |
|
| Brokerage and insurance
commissions |
|
|
677 |
|
|
|
696 |
|
|
|
629 |
|
|
|
649 |
|
|
|
839 |
|
| Capital markets fees |
|
|
4,037 |
|
|
|
2,449 |
|
|
|
1,824 |
|
|
|
1,809 |
|
|
|
4,871 |
|
| Securities gains/(losses),
net |
|
|
(314 |
) |
|
|
(1,104 |
) |
|
|
(153 |
) |
|
|
(1,055 |
) |
|
|
(2,089 |
) |
| Unrealized gain/(loss) on
equity securities, net |
|
|
(41 |
) |
|
|
193 |
|
|
|
(7 |
) |
|
|
(211 |
) |
|
|
(121 |
) |
| Net gains on sale of loans
held for sale |
|
|
1,050 |
|
|
|
1,831 |
|
|
|
888 |
|
|
|
1,832 |
|
|
|
2,901 |
|
| Valuation adjustment on
servicing rights |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Income on bank owned life
insurance |
|
|
1,220 |
|
|
|
964 |
|
|
|
600 |
|
|
|
694 |
|
|
|
523 |
|
| Other noninterest income |
|
|
407 |
|
|
|
1,463 |
|
|
|
2,532 |
|
|
|
1,978 |
|
|
|
3,036 |
|
| Total Noninterest
Income |
|
|
32,493 |
|
|
|
29,999 |
|
|
|
29,975 |
|
|
|
29,181 |
|
|
|
34,539 |
|
| Noninterest
Expense |
|
|
|
|
|
|
|
|
|
|
| Salaries and employee
benefits |
|
|
62,099 |
|
|
|
62,149 |
|
|
|
61,611 |
|
|
|
62,661 |
|
|
|
64,032 |
|
| Occupancy |
|
|
6,691 |
|
|
|
7,209 |
|
|
|
6,905 |
|
|
|
6,794 |
|
|
|
7,094 |
|
| Furniture and equipment |
|
|
3,063 |
|
|
|
2,915 |
|
|
|
3,019 |
|
|
|
2,928 |
|
|
|
3,033 |
|
| Professional fees |
|
|
15,194 |
|
|
|
12,797 |
|
|
|
16,320 |
|
|
|
14,289 |
|
|
|
14,457 |
|
| FDIC insurance
assessments |
|
|
3,035 |
|
|
|
3,279 |
|
|
|
1,866 |
|
|
|
1,988 |
|
|
|
1,530 |
|
| Advertising |
|
|
3,052 |
|
|
|
1,985 |
|
|
|
1,829 |
|
|
|
1,554 |
|
|
|
1,283 |
|
| Core deposit and customer
relationship intangibles amortization |
|
|
1,715 |
|
|
|
1,788 |
|
|
|
1,841 |
|
|
|
1,856 |
|
|
|
2,083 |
|
| Other real estate and loan
collection expenses, net |
|
|
348 |
|
|
|
155 |
|
|
|
373 |
|
|
|
304 |
|
|
|
78 |
|
| (Gain)/loss on
sales/valuations of assets, net |
|
|
(3,372 |
) |
|
|
1,115 |
|
|
|
2,388 |
|
|
|
(251 |
) |
|
|
(3,230 |
) |
| Acquisition, integration and
restructuring costs |
|
|
1,892 |
|
|
|
1,673 |
|
|
|
2,442 |
|
|
|
2,156 |
|
|
|
2,412 |
|
| Partnership investment in tax
credit projects |
|
|
154 |
|
|
|
538 |
|
|
|
3,247 |
|
|
|
979 |
|
|
|
737 |
|
| Other noninterest
expenses |
|
|
15,575 |
|
|
|
15,440 |
|
|
|
15,377 |
|
|
|
13,625 |
|
|
|
12,970 |
|
| Total Noninterest
Expense |
|
|
109,446 |
|
|
|
111,043 |
|
|
|
117,218 |
|
|
|
108,883 |
|
|
|
106,479 |
|
| Income Before Income
Taxes |
|
|
64,800 |
|
|
|
68,094 |
|
|
|
74,590 |
|
|
|
70,682 |
|
|
|
67,275 |
|
| Income taxes |
|
|
15,384 |
|
|
|
15,318 |
|
|
|
13,936 |
|
|
|
14,118 |
|
|
|
15,402 |
|
| Net
Income |
|
|
49,416 |
|
|
|
52,776 |
|
|
|
60,654 |
|
|
|
56,564 |
|
|
|
51,873 |
|
| Preferred dividends |
|
|
(2,012 |
) |
|
|
(2,013 |
) |
|
|
(2,012 |
) |
|
|
(2,013 |
) |
|
|
(2,012 |
) |
| Net Income Available
to Common Stockholders |
|
$ |
47,404 |
|
|
$ |
50,763 |
|
|
$ |
58,642 |
|
|
$ |
54,551 |
|
|
$ |
49,861 |
|
| Earnings per common
share-diluted |
|
$ |
1.11 |
|
|
$ |
1.19 |
|
|
$ |
1.37 |
|
|
$ |
1.28 |
|
|
$ |
1.17 |
|
| Weighted average
shares outstanding-diluted |
|
|
42,757,603 |
|
|
|
42,742,878 |
|
|
|
42,699,752 |
|
|
|
42,643,940 |
|
|
|
42,565,391 |
|
| HEARTLAND
FINANCIAL USA, INC. |
|
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
| DOLLARS
IN THOUSANDS, EXCEPT PER SHARE DATA |
|
|
|
As of |
|
|
|
6/30/2023 |
|
3/31/2023 |
|
12/31/2022 |
|
9/30/2022 |
|
6/30/2022 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
317,303 |
|
|
$ |
274,354 |
|
|
$ |
309,045 |
|
|
$ |
250,394 |
|
|
$ |
221,077 |
|
| Interest bearing deposits with
other banks and short-term investments |
|
|
82,884 |
|
|
|
87,757 |
|
|
|
54,042 |
|
|
|
149,466 |
|
|
|
163,717 |
|
| Cash and cash equivalents |
|
|
400,187 |
|
|
|
362,111 |
|
|
|
363,087 |
|
|
|
399,860 |
|
|
|
384,794 |
|
| Time deposits in other
financial institutions |
|
|
1,490 |
|
|
|
1,740 |
|
|
|
1,740 |
|
|
|
1,740 |
|
|
|
1,855 |
|
| Securities: |
|
|
|
|
|
|
|
|
|
|
|
Carried at fair value |
|
|
5,798,041 |
|
|
|
6,096,657 |
|
|
|
6,147,144 |
|
|
|
6,060,331 |
|
|
|
7,106,218 |
|
|
Held to maturity, at cost, less allowance for credit losses |
|
|
834,673 |
|
|
|
832,098 |
|
|
|
829,403 |
|
|
|
830,247 |
|
|
|
81,939 |
|
|
Other investments, at cost |
|
|
72,291 |
|
|
|
72,364 |
|
|
|
74,567 |
|
|
|
80,286 |
|
|
|
85,899 |
|
| Loans held for sale |
|
|
14,353 |
|
|
|
10,425 |
|
|
|
5,277 |
|
|
|
9,570 |
|
|
|
18,803 |
|
| Loans: |
|
|
|
|
|
|
|
|
|
|
|
Held to maturity |
|
|
11,717,974 |
|
|
|
11,495,353 |
|
|
|
11,428,352 |
|
|
|
10,923,532 |
|
|
|
10,678,218 |
|
|
Allowance for credit losses |
|
|
(111,198 |
) |
|
|
(112,707 |
) |
|
|
(109,483 |
) |
|
|
(105,715 |
) |
|
|
(101,353 |
) |
| Loans, net |
|
|
11,606,776 |
|
|
|
11,382,646 |
|
|
|
11,318,869 |
|
|
|
10,817,817 |
|
|
|
10,576,865 |
|
| Premises, furniture and
equipment, net |
|
|
190,420 |
|
|
|
191,267 |
|
|
|
197,330 |
|
|
|
203,585 |
|
|
|
206,818 |
|
| Goodwill |
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
| Core deposit and customer
relationship intangibles, net |
|
|
21,651 |
|
|
|
23,366 |
|
|
|
25,154 |
|
|
|
26,995 |
|
|
|
28,851 |
|
| Servicing rights, net |
|
|
— |
|
|
|
— |
|
|
|
7,840 |
|
|
|
8,379 |
|
|
|
8,288 |
|
| Cash surrender value on life
insurance |
|
|
195,793 |
|
|
|
194,419 |
|
|
|
193,403 |
|
|
|
193,184 |
|
|
|
192,474 |
|
| Other real estate, net |
|
|
2,677 |
|
|
|
7,438 |
|
|
|
8,401 |
|
|
|
8,030 |
|
|
|
4,528 |
|
| Other assets |
|
|
510,359 |
|
|
|
432,008 |
|
|
|
496,008 |
|
|
|
466,921 |
|
|
|
385,062 |
|
| Total
Assets |
|
$ |
20,224,716 |
|
|
$ |
20,182,544 |
|
|
$ |
20,244,228 |
|
|
$ |
19,682,950 |
|
|
$ |
19,658,399 |
|
| Liabilities and
Equity |
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
| Deposits: |
|
|
|
|
|
|
|
|
|
|
|
Demand |
|
$ |
4,897,858 |
|
|
$ |
5,119,554 |
|
|
$ |
5,701,340 |
|
|
$ |
6,083,563 |
|
|
$ |
6,087,304 |
|
|
Savings |
|
|
8,772,596 |
|
|
|
9,256,609 |
|
|
|
9,994,391 |
|
|
|
10,060,523 |
|
|
|
10,059,678 |
|
|
Time |
|
|
3,993,089 |
|
|
|
3,305,183 |
|
|
|
1,817,278 |
|
|
|
1,123,035 |
|
|
|
1,078,568 |
|
| Total deposits |
|
|
17,663,543 |
|
|
|
17,681,346 |
|
|
|
17,513,009 |
|
|
|
17,267,121 |
|
|
|
17,225,550 |
|
| Short-term borrowings |
|
|
44,364 |
|
|
|
92,337 |
|
|
|
376,117 |
|
|
|
147,000 |
|
|
|
97,749 |
|
| Other borrowings |
|
|
372,403 |
|
|
|
372,097 |
|
|
|
371,753 |
|
|
|
371,446 |
|
|
|
372,538 |
|
| Accrued expenses and other
liabilities |
|
|
285,416 |
|
|
|
207,359 |
|
|
|
248,294 |
|
|
|
241,425 |
|
|
|
188,494 |
|
| Total
Liabilities |
|
|
18,365,726 |
|
|
|
18,353,139 |
|
|
|
18,509,173 |
|
|
|
18,026,992 |
|
|
|
17,884,331 |
|
| Stockholders'
Equity |
|
|
|
|
|
|
|
|
|
|
| Preferred equity |
|
|
110,705 |
|
|
|
110,705 |
|
|
|
110,705 |
|
|
|
110,705 |
|
|
|
110,705 |
|
| Common stock |
|
|
42,645 |
|
|
|
42,559 |
|
|
|
42,467 |
|
|
|
42,444 |
|
|
|
42,439 |
|
| Capital surplus |
|
|
1,087,358 |
|
|
|
1,084,112 |
|
|
|
1,080,964 |
|
|
|
1,079,277 |
|
|
|
1,076,766 |
|
| Retained earnings |
|
|
1,193,522 |
|
|
|
1,158,948 |
|
|
|
1,120,925 |
|
|
|
1,074,168 |
|
|
|
1,031,076 |
|
| Accumulated other
comprehensive loss |
|
|
(575,240 |
) |
|
|
(566,919 |
) |
|
|
(620,006 |
) |
|
|
(650,636 |
) |
|
|
(486,918 |
) |
| Total
Equity |
|
|
1,858,990 |
|
|
|
1,829,405 |
|
|
|
1,735,055 |
|
|
|
1,655,958 |
|
|
|
1,774,068 |
|
| Total Liabilities and
Equity |
|
$ |
20,224,716 |
|
|
$ |
20,182,544 |
|
|
$ |
20,244,228 |
|
|
$ |
19,682,950 |
|
|
$ |
19,658,399 |
|
| HEARTLAND
FINANCIAL USA, INC. |
|
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
| DOLLARS
IN THOUSANDS, EXCEPT PER SHARE DATA AND FULL TIME EQUIVALENT
EMPLOYEE DATA |
|
|
|
For the Quarter Ended |
|
|
|
6/30/2023 |
|
3/31/2023 |
|
12/31/2022 |
|
9/30/2022 |
|
6/30/2022 |
|
Average Balances |
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
$ |
20,221,511 |
|
|
$ |
20,118,005 |
|
|
$ |
19,913,849 |
|
|
$ |
19,775,341 |
|
|
$ |
19,559,091 |
|
| Loans, net of unearned |
|
|
11,625,442 |
|
|
|
11,378,078 |
|
|
|
11,117,513 |
|
|
|
10,783,135 |
|
|
|
10,477,368 |
|
| Deposits |
|
|
17,689,138 |
|
|
|
17,505,867 |
|
|
|
17,319,218 |
|
|
|
17,282,289 |
|
|
|
17,044,479 |
|
| Earning assets |
|
|
18,523,552 |
|
|
|
18,392,649 |
|
|
|
18,175,838 |
|
|
|
18,157,795 |
|
|
|
17,987,734 |
|
| Interest bearing
liabilities |
|
|
13,209,794 |
|
|
|
12,582,234 |
|
|
|
11,980,032 |
|
|
|
11,723,026 |
|
|
|
11,575,319 |
|
| Common equity |
|
|
1,727,013 |
|
|
|
1,655,860 |
|
|
|
1,548,739 |
|
|
|
1,674,306 |
|
|
|
1,731,393 |
|
| Total stockholders'
equity |
|
|
1,837,718 |
|
|
|
1,766,565 |
|
|
|
1,659,444 |
|
|
|
1,785,011 |
|
|
|
1,842,098 |
|
| Tangible common equity
(non-GAAP)(1) |
|
|
1,128,527 |
|
|
|
1,055,617 |
|
|
|
946,688 |
|
|
|
1,070,399 |
|
|
|
1,125,543 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Key Performance
Ratios |
|
|
|
|
|
|
|
|
|
|
| Annualized return on average
assets |
|
|
0.98 |
% |
|
|
1.06 |
% |
|
|
1.21 |
% |
|
|
1.13 |
% |
|
|
1.06 |
% |
| Annualized return on average
common equity (GAAP) |
|
|
11.01 |
|
|
|
12.43 |
|
|
|
15.02 |
|
|
|
12.93 |
|
|
|
11.55 |
|
| Annualized return on average
tangible common equity (non-GAAP)(1) |
|
|
17.33 |
|
|
|
20.05 |
|
|
|
25.19 |
|
|
|
20.76 |
|
|
|
18.35 |
|
| Annualized ratio of net
charge-offs/(recoveries) to average loans |
|
|
0.32 |
|
|
|
(0.04 |
) |
|
|
(0.06 |
) |
|
|
0.00 |
|
|
|
0.03 |
|
| Annualized net interest margin
(GAAP) |
|
|
3.19 |
|
|
|
3.36 |
|
|
|
3.61 |
|
|
|
3.41 |
|
|
|
3.18 |
|
| Annualized net interest
margin, fully tax-equivalent (non-GAAP)(1) |
|
|
3.24 |
|
|
|
3.40 |
|
|
|
3.65 |
|
|
|
3.45 |
|
|
|
3.22 |
|
| Efficiency ratio (GAAP) |
|
|
60.93 |
|
|
|
60.94 |
|
|
|
60.05 |
|
|
|
58.84 |
|
|
|
60.16 |
|
| Adjusted efficiency ratio,
fully tax-equivalent (non-GAAP)(1) |
|
|
59.82 |
|
|
|
57.16 |
|
|
|
54.33 |
|
|
|
55.26 |
|
|
|
57.66 |
|
| Annualized ratio of total
noninterest expenses to average assets (GAAP) |
|
|
2.17 |
|
|
|
2.24 |
|
|
|
2.34 |
|
|
|
2.18 |
|
|
|
2.18 |
|
| Annualized ratio of core
expenses to average assets (non-GAAP)(1) |
|
|
2.16 |
|
|
|
2.14 |
|
|
|
2.14 |
|
|
|
2.09 |
|
|
|
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. |
| |
|
For the Quarter EndedJune
30, |
|
For the Six Months EndedJune
30, |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Average Balances |
|
|
|
|
|
|
|
|
| Assets |
|
$ |
20,221,511 |
|
|
$ |
19,559,091 |
|
|
$ |
20,170,044 |
|
|
$ |
19,395,391 |
|
| Loans, net of unearned |
|
|
11,625,442 |
|
|
|
10,477,368 |
|
|
|
11,502,443 |
|
|
|
10,261,679 |
|
| Deposits |
|
|
17,689,138 |
|
|
|
17,044,479 |
|
|
|
17,598,009 |
|
|
|
16,753,544 |
|
| Earning assets |
|
|
18,523,552 |
|
|
|
17,987,734 |
|
|
|
18,458,462 |
|
|
|
17,873,037 |
|
| Interest bearing
liabilities |
|
|
13,209,794 |
|
|
|
11,575,319 |
|
|
|
12,897,747 |
|
|
|
11,017,459 |
|
| Common equity |
|
|
1,727,013 |
|
|
|
1,731,393 |
|
|
|
1,691,633 |
|
|
|
1,866,657 |
|
| Total stockholders'
equity |
|
|
1,837,718 |
|
|
|
1,842,098 |
|
|
|
1,802,338 |
|
|
|
1,977,362 |
|
| Tangible common stockholders'
equity |
|
|
1,128,527 |
|
|
|
1,125,543 |
|
|
|
1,092,273 |
|
|
|
1,259,769 |
|
| |
|
|
|
|
|
|
|
|
| Key Performance
Ratios |
|
|
|
|
|
|
|
|
| Annualized return on average
assets |
|
|
0.98 |
% |
|
|
1.06 |
% |
|
|
1.02 |
% |
|
|
0.99 |
% |
| Annualized return on average
common equity (GAAP) |
|
|
11.01 |
|
|
|
11.55 |
|
|
|
11.70 |
|
|
|
9.82 |
|
| Annualized return on average
tangible common equity (non-GAAP)(1) |
|
|
17.33 |
|
|
|
18.35 |
|
|
|
18.63 |
|
|
|
15.08 |
|
| Annualized ratio of net
charge-offs/(recoveries) to average loans |
|
|
0.32 |
|
|
|
0.03 |
|
|
|
0.15 |
|
|
|
0.25 |
|
| Annualized net interest margin
(GAAP) |
|
|
3.19 |
|
|
|
3.18 |
|
|
|
3.27 |
|
|
|
3.13 |
|
| Annualized net interest
margin, fully tax-equivalent (non-GAAP)(1) |
|
|
3.24 |
|
|
|
3.22 |
|
|
|
3.32 |
|
|
|
3.17 |
|
| Efficiency ratio (GAAP) |
|
|
60.93 |
|
|
|
60.16 |
|
|
|
60.94 |
|
|
|
62.75 |
|
| Adjusted efficiency ratio,
fully tax-equivalent (non-GAAP)(1) |
|
|
59.82 |
|
|
|
57.66 |
|
|
|
58.48 |
|
|
|
61.02 |
|
| Total noninterest expenses to
average assets (GAAP) |
|
|
2.17 |
|
|
|
2.18 |
|
|
|
2.20 |
|
|
|
2.26 |
|
| Core expenses to average
assets (non-GAAP)(1) |
|
|
2.16 |
|
|
|
2.14 |
|
|
|
2.15 |
|
|
|
2.21 |
|
| |
|
|
|
|
|
|
|
|
|
(1) Refer to "Non-GAAP Measures" in this earnings release for
additional information on the usage and presentation of these
non-GAAP measures, and refer to these financial tables for the
reconciliations to the most directly comparable GAAP measures. |
| HEARTLAND
FINANCIAL USA, INC. |
|
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
|
DOLLARS IN THOUSANDS, EXCEPT PER SHARE AND FULL TIME
EQUIVALENT EMPLOYEE DATA |
| |
|
As of and for the Quarter Ended |
|
|
|
6/30/2023 |
|
3/31/2023 |
|
12/31/2022 |
|
9/30/2022 |
|
6/30/2022 |
|
Common Share Data |
|
|
|
|
|
|
|
|
|
|
|
Book value per common share |
|
$ |
41.00 |
|
|
$ |
40.38 |
|
|
$ |
38.25 |
|
|
$ |
36.41 |
|
|
$ |
39.19 |
|
| Tangible book value per common
share (non-GAAP)(1) |
|
$ |
26.98 |
|
|
$ |
26.30 |
|
|
$ |
24.09 |
|
|
$ |
22.20 |
|
|
$ |
24.94 |
|
| ASC 320 effect on book value
per common share |
|
$ |
(14.04 |
) |
|
$ |
(13.35 |
) |
|
$ |
(14.58 |
) |
|
$ |
(15.31 |
) |
|
$ |
(11.43 |
) |
| Common shares outstanding, net
of treasury stock |
|
|
42,644,544 |
|
|
|
42,558,726 |
|
|
|
42,467,394 |
|
|
|
42,444,106 |
|
|
|
42,439,439 |
|
| Tangible common equity ratio
(non-GAAP)(1) |
|
|
5.86 |
% |
|
|
5.72 |
% |
|
|
5.21 |
% |
|
|
4.94 |
% |
|
|
5.56 |
% |
| Adjusted tangible common
equity ratio (non-GAAP)(1) |
|
|
8.79 |
% |
|
|
8.61 |
% |
|
|
8.37 |
% |
|
|
8.35 |
% |
|
|
8.11 |
% |
| |
|
|
|
|
|
|
|
|
|
|
| Other Selected Trend
Information |
|
|
|
|
|
|
|
|
|
|
| Effective tax rate |
|
|
23.74 |
% |
|
|
22.50 |
% |
|
|
18.68 |
% |
|
|
19.97 |
% |
|
|
22.89 |
% |
| Full time equivalent
employees |
|
|
1,966 |
|
|
|
1,991 |
|
|
|
2,002 |
|
|
|
2,020 |
|
|
|
2,087 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Loans Held to
Maturity |
|
|
|
|
|
|
|
|
|
|
| Commercial and industrial |
|
$ |
3,590,680 |
|
|
$ |
3,498,345 |
|
|
$ |
3,464,414 |
|
|
$ |
3,278,703 |
|
|
$ |
3,059,519 |
|
| Paycheck Protection Program
("PPP") |
|
|
4,139 |
|
|
|
8,258 |
|
|
|
11,025 |
|
|
|
13,506 |
|
|
|
23,031 |
|
| Owner occupied commercial real
estate |
|
|
2,398,698 |
|
|
|
2,312,538 |
|
|
|
2,265,307 |
|
|
|
2,285,973 |
|
|
|
2,282,833 |
|
|
Commercial and business lending |
|
|
5,993,517 |
|
|
|
5,819,141 |
|
|
|
5,740,746 |
|
|
|
5,578,182 |
|
|
|
5,365,383 |
|
| Non-owner occupied commercial
real estate |
|
|
2,530,736 |
|
|
|
2,421,341 |
|
|
|
2,330,940 |
|
|
|
2,219,542 |
|
|
|
2,321,718 |
|
| Real estate construction |
|
|
1,013,134 |
|
|
|
1,102,186 |
|
|
|
1,076,082 |
|
|
|
996,017 |
|
|
|
845,045 |
|
|
Commercial real estate lending |
|
|
3,543,870 |
|
|
|
3,523,527 |
|
|
|
3,407,022 |
|
|
|
3,215,559 |
|
|
|
3,166,763 |
|
|
Total commercial lending |
|
|
9,537,387 |
|
|
|
9,342,668 |
|
|
|
9,147,768 |
|
|
|
8,793,741 |
|
|
|
8,532,146 |
|
| Agricultural and agricultural
real estate |
|
|
839,817 |
|
|
|
810,183 |
|
|
|
920,510 |
|
|
|
781,354 |
|
|
|
836,703 |
|
| Residential mortgage |
|
|
828,437 |
|
|
|
841,084 |
|
|
|
853,361 |
|
|
|
852,928 |
|
|
|
845,270 |
|
| Consumer |
|
|
512,333 |
|
|
|
501,418 |
|
|
|
506,713 |
|
|
|
495,509 |
|
|
|
464,099 |
|
| Total loans held to
maturity |
|
$ |
11,717,974 |
|
|
$ |
11,495,353 |
|
|
$ |
11,428,352 |
|
|
$ |
10,923,532 |
|
|
$ |
10,678,218 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Total unfunded loan
commitments |
|
$ |
4,905,147 |
|
|
$ |
4,867,925 |
|
|
$ |
4,729,677 |
|
|
$ |
4,664,379 |
|
|
$ |
4,458,874 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Deposits |
|
|
|
|
|
|
|
|
|
|
| Demand-customer |
|
$ |
4,897,858 |
|
|
$ |
5,119,554 |
|
|
$ |
5,701,340 |
|
|
$ |
6,083,563 |
|
|
$ |
6,087,304 |
|
| Savings-customer |
|
|
8,149,596 |
|
|
|
8,501,337 |
|
|
|
8,670,898 |
|
|
|
8,691,545 |
|
|
|
8,852,602 |
|
| Savings-wholesale and
institutional |
|
|
623,000 |
|
|
|
755,272 |
|
|
|
1,323,493 |
|
|
|
1,368,978 |
|
|
|
1,207,076 |
|
|
Total savings |
|
|
8,772,596 |
|
|
|
9,256,609 |
|
|
|
9,994,391 |
|
|
|
10,060,523 |
|
|
|
10,059,678 |
|
| Time-customer |
|
|
1,597,849 |
|
|
|
1,071,476 |
|
|
|
851,539 |
|
|
|
973,035 |
|
|
|
1,003,568 |
|
| Time-wholesale |
|
|
2,395,240 |
|
|
|
2,233,707 |
|
|
|
965,739 |
|
|
|
150,000 |
|
|
|
75,000 |
|
|
Total time |
|
|
3,993,089 |
|
|
|
3,305,183 |
|
|
|
1,817,278 |
|
|
|
1,123,035 |
|
|
|
1,078,568 |
|
| Total
deposits |
|
$ |
17,663,543 |
|
|
$ |
17,681,346 |
|
|
$ |
17,513,009 |
|
|
$ |
17,267,121 |
|
|
$ |
17,225,550 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Total customer deposits |
|
$ |
14,645,303 |
|
|
$ |
14,692,367 |
|
|
$ |
15,223,777 |
|
|
$ |
15,748,143 |
|
|
$ |
15,943,474 |
|
| Total wholesale and
institutional deposits |
|
|
3,018,240 |
|
|
|
2,988,979 |
|
|
|
2,289,232 |
|
|
|
1,518,978 |
|
|
|
1,282,076 |
|
| Total deposits |
|
$ |
17,663,543 |
|
|
$ |
17,681,346 |
|
|
$ |
17,513,009 |
|
|
$ |
17,267,121 |
|
|
$ |
17,225,550 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
(1) Refer to "Non-GAAP Measures" in this earnings release for
additional information on the usage and presentation of these
non-GAAP measures, and refer to these financial tables for the
reconciliations to the most directly comparable GAAP measures. |
| HEARTLAND
FINANCIAL USA, INC. |
|
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
| DOLLARS
IN THOUSANDS, EXCEPT PER SHARE DATA |
|
|
|
As of and for the Quarter Ended |
|
|
|
6/30/2023 |
|
3/31/2023 |
|
12/31/2022 |
|
9/30/2022 |
|
6/30/2022 |
|
Allowance for Credit Losses-Loans |
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of period |
|
$ |
112,707 |
|
|
$ |
109,483 |
|
|
$ |
105,715 |
|
|
$ |
101,353 |
|
|
$ |
100,522 |
|
| Provision for credit
losses |
|
|
7,829 |
|
|
|
2,184 |
|
|
|
2,075 |
|
|
|
4,388 |
|
|
|
1,545 |
|
| Charge-offs |
|
|
(9,613 |
) |
|
|
(2,151 |
) |
|
|
(2,668 |
) |
|
|
(938 |
) |
|
|
(1,473 |
) |
| Recoveries |
|
|
275 |
|
|
|
3,191 |
|
|
|
4,361 |
|
|
|
912 |
|
|
|
759 |
|
| Balance, end of
period |
|
$ |
111,198 |
|
|
$ |
112,707 |
|
|
$ |
109,483 |
|
|
$ |
105,715 |
|
|
$ |
101,353 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Allowance for Unfunded
Commitments |
|
|
|
|
|
|
|
|
|
|
| Balance, beginning of
period |
|
$ |
21,086 |
|
|
$ |
20,196 |
|
|
$ |
18,884 |
|
|
$ |
17,780 |
|
|
$ |
16,079 |
|
| Provision for credit
losses |
|
|
(2,450 |
) |
|
|
890 |
|
|
|
1,312 |
|
|
|
1,104 |
|
|
|
1,701 |
|
| Balance, end of
period |
|
$ |
18,636 |
|
|
$ |
21,086 |
|
|
$ |
20,196 |
|
|
$ |
18,884 |
|
|
$ |
17,780 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Allowance for lending
related credit losses |
|
$ |
129,834 |
|
|
$ |
133,793 |
|
|
$ |
129,679 |
|
|
$ |
124,599 |
|
|
$ |
119,133 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Provision for Credit
Losses |
|
|
|
|
|
|
|
|
|
|
| Provision for credit
losses-loans |
|
$ |
7,829 |
|
|
$ |
2,184 |
|
|
$ |
2,075 |
|
|
$ |
4,388 |
|
|
$ |
1,545 |
|
| Provision (benefit) for credit
losses-unfunded commitments |
|
|
(2,450 |
) |
|
|
890 |
|
|
|
1,312 |
|
|
|
1,104 |
|
|
|
1,701 |
|
| Total provision for
credit losses |
|
$ |
5,379 |
|
|
$ |
3,074 |
|
|
$ |
3,387 |
|
|
$ |
5,492 |
|
|
$ |
3,246 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Asset
Quality |
|
|
|
|
|
|
|
|
|
|
| Nonaccrual loans |
|
$ |
61,956 |
|
|
$ |
58,066 |
|
|
$ |
58,231 |
|
|
$ |
64,560 |
|
|
$ |
62,909 |
|
| Loans past due ninety days or
more |
|
|
1,459 |
|
|
|
174 |
|
|
|
273 |
|
|
|
678 |
|
|
|
95 |
|
| Other real estate owned |
|
|
2,677 |
|
|
|
7,438 |
|
|
|
8,401 |
|
|
|
8,030 |
|
|
|
4,528 |
|
| Other repossessed assets |
|
|
5 |
|
|
|
24 |
|
|
|
26 |
|
|
|
— |
|
|
|
— |
|
| Total nonperforming
assets |
|
$ |
66,097 |
|
|
$ |
65,702 |
|
|
$ |
66,931 |
|
|
$ |
73,268 |
|
|
$ |
67,532 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Nonperforming Assets
Activity |
|
|
|
|
|
|
|
|
|
|
| Balance, beginning of
period |
|
$ |
65,702 |
|
|
$ |
66,931 |
|
|
$ |
73,268 |
|
|
$ |
67,532 |
|
|
$ |
65,876 |
|
| Net loan
(charge-offs)/recoveries |
|
|
(9,338 |
) |
|
|
1,040 |
|
|
|
1,693 |
|
|
|
(26 |
) |
|
|
(714 |
) |
| New nonperforming loans |
|
|
19,805 |
|
|
|
4,626 |
|
|
|
1,439 |
|
|
|
8,388 |
|
|
|
8,590 |
|
| Reduction of nonperforming
loans(1) |
|
|
(5,253 |
) |
|
|
(5,711 |
) |
|
|
(8,875 |
) |
|
|
(2,015 |
) |
|
|
(5,244 |
) |
| Net OREO/repossessed assets
sales proceeds and losses |
|
|
(4,819 |
) |
|
|
(1,184 |
) |
|
|
(594 |
) |
|
|
(611 |
) |
|
|
(976 |
) |
| Balance, end of
period |
|
$ |
66,097 |
|
|
$ |
65,702 |
|
|
$ |
66,931 |
|
|
$ |
73,268 |
|
|
$ |
67,532 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Asset Quality
Ratios |
|
|
|
|
|
|
|
|
|
|
| Ratio of nonperforming loans
to total loans |
|
|
0.54 |
% |
|
|
0.51 |
% |
|
|
0.51 |
% |
|
|
0.60 |
% |
|
|
0.59 |
% |
| Ratio of nonperforming assets
to total assets |
|
|
0.33 |
|
|
|
0.33 |
|
|
|
0.33 |
|
|
|
0.37 |
|
|
|
0.34 |
|
| Annualized ratio of net loan
charge-offs/(recoveries) to average loans |
|
|
0.32 |
|
|
|
(0.04 |
) |
|
|
(0.06 |
) |
|
|
0.00 |
|
|
|
0.03 |
|
| Allowance for loan credit
losses as a percent of loans |
|
|
0.95 |
|
|
|
0.98 |
|
|
|
0.96 |
|
|
|
0.97 |
|
|
|
0.95 |
|
| Allowance for lending related
credit losses as a percent of loans |
|
|
1.11 |
|
|
|
1.16 |
|
|
|
1.13 |
|
|
|
1.14 |
|
|
|
1.12 |
|
| Allowance for loan credit
losses as a percent of nonperforming loans |
|
|
175.35 |
|
|
|
193.52 |
|
|
|
187.14 |
|
|
|
162.05 |
|
|
|
160.87 |
|
| Loans delinquent 30-89 days as
a percent of total loans |
|
|
0.12 |
|
|
|
0.10 |
|
|
|
0.04 |
|
|
|
0.10 |
|
|
|
0.06 |
|
| |
|
|
|
|
|
|
|
|
|
|
| (1) Includes
principal reductions, transfers to performing status and transfers
to OREO. |
| HEARTLAND
FINANCIAL USA, INC. |
|
|
|
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
|
DOLLARS IN THOUSANDS |
| |
|
For the Quarter Ended |
| |
|
June 30, 2023 |
|
March 31, 2023 |
|
June 30, 2022 |
| |
|
AverageBalance |
|
Interest |
|
Rate |
|
AverageBalance |
|
Interest |
|
Rate |
|
AverageBalance |
|
Interest |
|
Rate |
| Earning
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
$ |
5,962,207 |
|
|
$ |
58,172 |
|
3.91 |
% |
|
$ |
6,096,888 |
|
|
$ |
55,976 |
|
3.72 |
% |
|
$ |
6,419,615 |
|
|
$ |
38,098 |
|
2.38 |
% |
| Nontaxable(1) |
|
|
895,458 |
|
|
|
8,074 |
|
3.62 |
|
|
|
922,676 |
|
|
|
7,630 |
|
3.35 |
|
|
|
915,880 |
|
|
|
6,972 |
|
3.05 |
|
| Total securities |
|
|
6,857,665 |
|
|
|
66,246 |
|
3.87 |
|
|
|
7,019,564 |
|
|
|
63,606 |
|
3.67 |
|
|
|
7,335,495 |
|
|
|
45,070 |
|
2.46 |
|
| Interest on deposits with
other banks and short-term investments |
|
|
153,622 |
|
|
|
2,051 |
|
5.41 |
|
|
|
105,400 |
|
|
|
1,131 |
|
4.35 |
|
|
|
277,773 |
|
|
|
563 |
|
0.81 |
|
| Federal funds sold |
|
|
— |
|
|
|
— |
|
— |
|
|
|
— |
|
|
|
— |
|
— |
|
|
|
— |
|
|
|
— |
|
— |
|
| Loans:(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Commercial and
industrial(1) |
|
|
3,565,449 |
|
|
|
56,644 |
|
6.37 |
|
|
|
3,459,317 |
|
|
|
49,907 |
|
5.85 |
|
|
|
3,002,822 |
|
|
|
30,441 |
|
4.07 |
|
| PPP loans |
|
|
6,302 |
|
|
|
24 |
|
1.53 |
|
|
|
9,970 |
|
|
|
26 |
|
1.06 |
|
|
|
41,370 |
|
|
|
1,801 |
|
17.46 |
|
| Owner occupied commercial real
estate |
|
|
2,366,107 |
|
|
|
28,031 |
|
4.75 |
|
|
|
2,289,002 |
|
|
|
26,769 |
|
4.74 |
|
|
|
2,294,524 |
|
|
|
22,863 |
|
4.00 |
|
| Non-owner occupied commercial
real estate |
|
|
2,462,098 |
|
|
|
35,583 |
|
5.80 |
|
|
|
2,331,318 |
|
|
|
30,749 |
|
5.35 |
|
|
|
2,179,048 |
|
|
|
22,871 |
|
4.21 |
|
| Real estate construction |
|
|
1,028,109 |
|
|
|
18,528 |
|
7.23 |
|
|
|
1,099,026 |
|
|
|
18,131 |
|
6.69 |
|
|
|
878,555 |
|
|
|
10,015 |
|
4.57 |
|
| Agricultural and agricultural
real estate |
|
|
848,554 |
|
|
|
12,256 |
|
5.79 |
|
|
|
835,648 |
|
|
|
11,353 |
|
5.51 |
|
|
|
782,610 |
|
|
|
7,933 |
|
4.07 |
|
| Residential mortgage |
|
|
840,741 |
|
|
|
9,383 |
|
4.48 |
|
|
|
852,561 |
|
|
|
9,273 |
|
4.41 |
|
|
|
849,174 |
|
|
|
8,358 |
|
3.95 |
|
| Consumer |
|
|
508,082 |
|
|
|
9,068 |
|
7.16 |
|
|
|
501,236 |
|
|
|
8,242 |
|
6.67 |
|
|
|
449,265 |
|
|
|
4,949 |
|
4.42 |
|
| Less: allowance for credit
losses-loans |
|
|
(113,177 |
) |
|
|
— |
|
— |
|
|
|
(110,393 |
) |
|
|
— |
|
— |
|
|
|
(102,902 |
) |
|
|
— |
|
— |
|
| Net loans |
|
|
11,512,265 |
|
|
|
169,517 |
|
5.91 |
|
|
|
11,267,685 |
|
|
|
154,450 |
|
5.56 |
|
|
|
10,374,466 |
|
|
|
109,231 |
|
4.22 |
|
| Total earning
assets |
|
|
18,523,552 |
|
|
|
237,814 |
|
5.15 |
% |
|
|
18,392,649 |
|
|
|
219,187 |
|
4.83 |
% |
|
|
17,987,734 |
|
|
|
154,864 |
|
3.45 |
% |
| Nonearning Assets |
|
|
1,697,959 |
|
|
|
|
|
|
|
1,725,356 |
|
|
|
|
|
|
|
1,571,357 |
|
|
|
|
|
| Total
Assets |
|
$ |
20,221,511 |
|
|
|
|
|
|
$ |
20,118,005 |
|
|
|
|
|
|
$ |
19,559,091 |
|
|
|
|
|
| Interest Bearing
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Savings |
|
$ |
8,935,775 |
|
|
$ |
41,284 |
|
1.85 |
% |
|
$ |
9,730,494 |
|
|
$ |
37,893 |
|
1.58 |
% |
|
$ |
9,995,497 |
|
|
$ |
5,372 |
|
0.22 |
% |
| Time deposits |
|
|
3,812,330 |
|
|
|
40,691 |
|
4.28 |
|
|
|
2,257,047 |
|
|
|
19,005 |
|
3.41 |
|
|
|
1,088,765 |
|
|
|
1,158 |
|
0.43 |
|
| Short-term borrowings |
|
|
89,441 |
|
|
|
848 |
|
3.80 |
|
|
|
222,772 |
|
|
|
2,422 |
|
4.41 |
|
|
|
118,646 |
|
|
|
88 |
|
0.30 |
|
| Other borrowings |
|
|
372,248 |
|
|
|
5,545 |
|
5.97 |
|
|
|
371,921 |
|
|
|
5,446 |
|
5.94 |
|
|
|
372,411 |
|
|
|
3,808 |
|
4.10 |
|
| Total interest bearing
liabilities |
|
|
13,209,794 |
|
|
|
88,368 |
|
2.68 |
% |
|
|
12,582,234 |
|
|
|
64,766 |
|
2.09 |
% |
|
|
11,575,319 |
|
|
|
10,426 |
|
0.36 |
% |
| Noninterest Bearing
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Noninterest bearing
deposits |
|
|
4,941,033 |
|
|
|
|
|
|
|
5,518,326 |
|
|
|
|
|
|
|
5,960,217 |
|
|
|
|
|
| Accrued interest and other
liabilities |
|
|
232,966 |
|
|
|
|
|
|
|
250,880 |
|
|
|
|
|
|
|
181,457 |
|
|
|
|
|
| Total noninterest
bearing liabilities |
|
|
5,173,999 |
|
|
|
|
|
|
|
5,769,206 |
|
|
|
|
|
|
|
6,141,674 |
|
|
|
|
|
| Equity |
|
|
1,837,718 |
|
|
|
|
|
|
|
1,766,565 |
|
|
|
|
|
|
|
1,842,098 |
|
|
|
|
|
| Total Liabilities and
Equity |
|
$ |
20,221,511 |
|
|
|
|
|
|
$ |
20,118,005 |
|
|
|
|
|
|
$ |
19,559,091 |
|
|
|
|
|
| Net interest income,
fully tax-equivalent
(non-GAAP)(1)(3) |
|
|
|
$ |
149,446 |
|
|
|
|
|
$ |
154,421 |
|
|
|
|
|
$ |
144,438 |
|
|
| Net interest
spread(1) |
|
|
|
|
|
2.47 |
% |
|
|
|
|
|
2.74 |
% |
|
|
|
|
|
3.09 |
% |
| Net interest income,
fully tax-equivalent
(non-GAAP)(1)(3)to total earning
assets |
|
|
|
|
|
3.24 |
% |
|
|
|
|
|
3.40 |
% |
|
|
|
|
|
3.22 |
% |
| Interest bearing liabilities
to earning assets |
|
|
71.31 |
% |
|
|
|
|
|
|
68.41 |
% |
|
|
|
|
|
|
64.35 |
% |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Computed on a tax-equivalent basis using an effective tax rate
of 21%. |
|
(2) Nonaccrual loans and loans held for sale are included in the
average loans outstanding. |
|
(3) Refer to "Non-GAAP Measures" in this earnings release for
additional information on the usage and presentation of these
non-GAAP measures, and refer to these financial tables for the
reconciliations to the most directly comparable GAAP measures. |
| HEARTLAND
FINANCIAL USA, INC. |
|
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
|
DOLLARS IN THOUSANDS |
| |
|
For the Six Months Ended |
| |
|
June 30, 2023 |
|
June 30, 2022 |
| |
|
AverageBalance |
|
Interest |
|
Rate |
|
AverageBalance |
|
Interest |
|
Rate |
| Earning
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
| Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
$ |
6,029,175 |
|
|
$ |
114,148 |
|
|
3.82 |
% |
|
$ |
6,460,412 |
|
|
$ |
70,718 |
|
|
2.21 |
% |
|
Nontaxable(1) |
|
|
908,992 |
|
|
|
15,704 |
|
|
3.48 |
|
|
|
1,010,888 |
|
|
|
14,823 |
|
|
2.96 |
|
| Total securities |
|
|
6,938,167 |
|
|
|
129,852 |
|
|
3.77 |
|
|
|
7,471,300 |
|
|
|
85,541 |
|
|
2.31 |
% |
| Interest bearing deposits with
other banks and other short-term investments |
|
|
129,645 |
|
|
|
3,182 |
|
|
4.95 |
|
|
|
247,281 |
|
|
|
634 |
|
|
0.52 |
|
| Federal funds sold |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
6 |
|
|
|
— |
|
|
— |
|
| Loans:(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial(1) |
|
|
3,512,807 |
|
|
|
106,551 |
|
|
6.12 |
% |
|
|
2,874,694 |
|
|
|
57,494 |
|
|
4.03 |
|
|
PPP loans |
|
|
8,126 |
|
|
|
50 |
|
|
1.24 |
|
|
|
86,460 |
|
|
|
6,124 |
|
|
14.28 |
|
|
Owner occupied commercial real estate |
|
|
2,327,702 |
|
|
|
54,800 |
|
|
4.75 |
|
|
|
2,268,963 |
|
|
|
44,141 |
|
|
3.92 |
|
|
Non-owner occupied commercial real estate |
|
|
2,397,004 |
|
|
|
66,332 |
|
|
5.58 |
|
|
|
2,119,925 |
|
|
|
44,034 |
|
|
4.19 |
|
|
Real estate construction |
|
|
1,063,372 |
|
|
|
36,659 |
|
|
6.95 |
|
|
|
862,989 |
|
|
|
19,291 |
|
|
4.51 |
|
|
Agricultural and agricultural real estate |
|
|
842,136 |
|
|
|
23,609 |
|
|
5.65 |
|
|
|
764,082 |
|
|
|
14,939 |
|
|
3.94 |
|
|
Residential mortgage |
|
|
846,618 |
|
|
|
18,656 |
|
|
4.44 |
|
|
|
846,542 |
|
|
|
16,443 |
|
|
3.92 |
|
|
Consumer |
|
|
504,678 |
|
|
|
17,310 |
|
|
6.92 |
|
|
|
438,024 |
|
|
|
9,604 |
|
|
4.42 |
|
|
Less: allowance for credit losses-loans |
|
|
(111,793 |
) |
|
|
— |
|
|
— |
|
|
|
(107,229 |
) |
|
|
— |
|
|
— |
|
| Net loans |
|
|
11,390,650 |
|
|
|
323,967 |
|
|
5.74 |
|
|
|
10,154,450 |
|
|
|
212,070 |
|
|
4.21 |
|
| Total earning
assets |
|
|
18,458,462 |
|
|
|
457,001 |
|
|
4.99 |
% |
|
|
17,873,037 |
|
|
|
298,245 |
|
|
3.37 |
% |
| Nonearning Assets |
|
|
1,711,582 |
|
|
|
|
|
|
|
1,522,354 |
|
|
|
|
|
| Total
Assets |
|
$ |
20,170,044 |
|
|
|
|
|
|
$ |
19,395,391 |
|
|
|
|
|
| Interest Bearing
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
| Savings |
|
$ |
9,330,939 |
|
|
$ |
79,177 |
|
|
1.71 |
% |
|
$ |
9,445,778 |
|
|
$ |
7,766 |
|
|
0.17 |
% |
| Time deposits |
|
|
3,038,985 |
|
|
|
59,696 |
|
|
3.96 |
|
|
|
1,080,267 |
|
|
|
1,741 |
|
|
0.32 |
|
| Short-term borrowings |
|
|
155,738 |
|
|
|
3,270 |
|
|
4.23 |
|
|
|
119,115 |
|
|
|
134 |
|
|
0.23 |
|
| Other borrowings |
|
|
372,085 |
|
|
|
10,991 |
|
|
5.96 |
|
|
|
372,299 |
|
|
|
7,368 |
|
|
3.99 |
|
| Total interest bearing
liabilities |
|
|
12,897,747 |
|
|
|
153,134 |
|
|
2.39 |
% |
|
|
11,017,459 |
|
|
|
17,009 |
|
|
0.31 |
% |
| Noninterest Bearing
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
| Noninterest bearing
deposits |
|
|
5,228,085 |
|
|
|
|
|
|
|
6,227,499 |
|
|
|
|
|
| Accrued interest and other
liabilities |
|
|
241,874 |
|
|
|
|
|
|
|
173,071 |
|
|
|
|
|
| Total noninterest
bearing liabilities |
|
|
5,469,959 |
|
|
|
|
|
|
|
6,400,570 |
|
|
|
|
|
| Stockholders'
Equity |
|
|
1,802,338 |
|
|
|
|
|
|
|
1,977,362 |
|
|
|
|
|
| Total Liabilities and
Stockholders' Equity |
|
$ |
20,170,044 |
|
|
|
|
|
|
$ |
19,395,391 |
|
|
|
|
|
| Net interest income,
fully tax-equivalent
(non-GAAP)(1)(3) |
|
|
|
$ |
303,867 |
|
|
|
|
|
|
$ |
281,236 |
|
|
|
| Net interest
spread(1) |
|
|
|
|
|
2.60 |
% |
|
|
|
|
|
3.06 |
% |
| Net interest income,
fully tax-equivalent
(non-GAAP)(1)(3)to total earning
assets |
|
|
|
|
|
3.32 |
% |
|
|
|
|
|
3.17 |
% |
| Interest bearing liabilities
to earning assets |
|
|
69.87 |
% |
|
|
|
|
|
|
61.64 |
% |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| (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 |
|
|
|
6/30/2023 |
|
3/31/2023 |
|
12/31/2022 |
|
9/30/2022 |
|
6/30/2022 |
|
Reconciliation of Annualized Return on Average Tangible
Common Equity (non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
Net income available to common stockholders (GAAP) |
|
$ |
47,404 |
|
|
$ |
50,763 |
|
|
$ |
58,642 |
|
|
$ |
54,551 |
|
|
$ |
49,861 |
|
|
Plus core deposit and customer relationship intangibles
amortization, net of tax(1) |
|
|
1,354 |
|
|
|
1,413 |
|
|
|
1,455 |
|
|
|
1,466 |
|
|
|
1,645 |
|
| Net income available
to common stockholders excluding intangible amortization
(non-GAAP) |
|
$ |
48,758 |
|
|
$ |
52,176 |
|
|
$ |
60,097 |
|
|
$ |
56,017 |
|
|
$ |
51,506 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Average common equity
(GAAP) |
|
$ |
1,727,013 |
|
|
$ |
1,655,860 |
|
|
$ |
1,548,739 |
|
|
$ |
1,674,306 |
|
|
$ |
1,731,393 |
|
|
Less average goodwill |
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
Less average core deposit and customer relationship intangibles,
net |
|
|
22,481 |
|
|
|
24,238 |
|
|
|
26,046 |
|
|
|
27,902 |
|
|
|
29,845 |
|
| Average tangible
common equity (non-GAAP) |
|
$ |
1,128,527 |
|
|
$ |
1,055,617 |
|
|
$ |
946,688 |
|
|
$ |
1,070,399 |
|
|
$ |
1,125,543 |
|
| Annualized return on average
common equity (GAAP) |
|
|
11.01 |
% |
|
|
12.43 |
% |
|
|
15.02 |
% |
|
|
12.93 |
% |
|
|
11.55 |
% |
| Annualized return on average
tangible common equity (non-GAAP) |
|
|
17.33 |
% |
|
|
20.05 |
% |
|
|
25.19 |
% |
|
|
20.76 |
% |
|
|
18.35 |
% |
| |
|
|
|
|
|
|
|
|
|
|
| Reconciliation of
Annualized Net Interest Margin, Fully Tax-Equivalent
(non-GAAP) |
|
|
|
|
|
|
|
|
|
|
| Net Interest Income
(GAAP) |
|
$ |
147,132 |
|
|
$ |
152,212 |
|
|
$ |
165,220 |
|
|
$ |
155,876 |
|
|
$ |
142,461 |
|
|
Plus tax-equivalent adjustment(1) |
|
|
2,314 |
|
|
|
2,209 |
|
|
|
2,152 |
|
|
|
2,151 |
|
|
|
1,977 |
|
| Net interest income,
fully tax-equivalent (non-GAAP) |
|
$ |
149,446 |
|
|
$ |
154,421 |
|
|
$ |
167,372 |
|
|
$ |
158,027 |
|
|
$ |
144,438 |
|
| Average earning assets |
|
$ |
18,523,552 |
|
|
$ |
18,392,649 |
|
|
$ |
18,175,838 |
|
|
$ |
18,157,795 |
|
|
$ |
17,987,734 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Annualized net interest margin
(GAAP) |
|
|
3.19 |
% |
|
|
3.36 |
% |
|
|
3.61 |
% |
|
|
3.41 |
% |
|
|
3.18 |
% |
| Annualized net interest
margin, fully tax-equivalent (non-GAAP) |
|
|
3.24 |
|
|
|
3.40 |
|
|
|
3.65 |
|
|
|
3.45 |
|
|
|
3.22 |
|
| Net purchase accounting
discount amortization on loans included in annualized net interest
margin |
|
|
0.03 |
|
|
|
0.02 |
|
|
|
0.03 |
|
|
|
0.03 |
|
|
|
0.07 |
|
| Reconciliation of
Tangible Book Value Per Common Share (non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
Common equity (GAAP) |
|
$ |
1,748,285 |
|
|
$ |
1,718,700 |
|
|
$ |
1,624,350 |
|
|
$ |
1,545,253 |
|
|
$ |
1,663,363 |
|
|
Less goodwill |
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
Less core deposit and customer relationship intangibles, net |
|
|
21,651 |
|
|
|
23,366 |
|
|
|
25,154 |
|
|
|
26,995 |
|
|
|
28,851 |
|
| Tangible common equity
(non-GAAP) |
|
$ |
1,150,629 |
|
|
$ |
1,119,329 |
|
|
$ |
1,023,191 |
|
|
$ |
942,253 |
|
|
$ |
1,058,507 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Common shares outstanding, net
of treasury stock |
|
|
42,644,544 |
|
|
|
42,558,726 |
|
|
|
42,467,394 |
|
|
|
42,444,106 |
|
|
|
42,439,439 |
|
| Common equity (book value) per
share (GAAP) |
|
$ |
41.00 |
|
|
$ |
40.38 |
|
|
$ |
38.25 |
|
|
$ |
36.41 |
|
|
$ |
39.19 |
|
| Tangible book value per common
share (non-GAAP) |
|
$ |
26.98 |
|
|
$ |
26.30 |
|
|
$ |
24.09 |
|
|
$ |
22.20 |
|
|
$ |
24.94 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Reconciliation of
Tangible Common Equity Ratio (non-GAAP) |
|
|
|
|
|
|
|
|
|
|
| Tangible common equity
(non-GAAP) |
|
$ |
1,150,629 |
|
|
$ |
1,119,329 |
|
|
$ |
1,023,191 |
|
|
$ |
942,253 |
|
|
$ |
1,058,507 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Total assets (GAAP) |
|
$ |
20,224,716 |
|
|
$ |
20,182,544 |
|
|
$ |
20,244,228 |
|
|
$ |
19,682,950 |
|
|
$ |
19,658,399 |
|
|
Less goodwill |
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
Less core deposit and customer relationship intangibles, net |
|
|
21,651 |
|
|
|
23,366 |
|
|
|
25,154 |
|
|
|
26,995 |
|
|
|
28,851 |
|
| Total tangible assets
(non-GAAP) |
|
$ |
19,627,060 |
|
|
$ |
19,583,173 |
|
|
$ |
19,643,069 |
|
|
$ |
19,079,950 |
|
|
$ |
19,053,543 |
|
| Tangible common equity ratio
(non-GAAP) |
|
|
5.86 |
% |
|
|
5.72 |
% |
|
|
5.21 |
% |
|
|
4.94 |
% |
|
|
5.56 |
% |
| |
|
|
|
|
|
|
|
|
|
|
| Reconciliation of
Adjusted Tangible Common Equity Ratio (non-GAAP) |
|
|
|
|
|
|
|
|
|
|
| Tangible common equity
(non-GAAP) |
|
$ |
1,150,629 |
|
|
$ |
1,119,329 |
|
|
$ |
1,023,191 |
|
|
$ |
942,253 |
|
|
$ |
1,058,507 |
|
| Accumulated other
comprehensive loss |
|
|
575,240 |
|
|
|
566,919 |
|
|
|
620,006 |
|
|
|
650,636 |
|
|
|
486,918 |
|
| Adjusted tangible common
equity (non-GAAP) |
|
$ |
1,725,869 |
|
|
$ |
1,686,248 |
|
|
$ |
1,643,197 |
|
|
$ |
1,592,889 |
|
|
$ |
1,545,425 |
|
| Total tangible assets
(non-GAAP) |
|
$ |
19,627,060 |
|
|
$ |
19,583,173 |
|
|
$ |
19,643,069 |
|
|
$ |
19,079,950 |
|
|
$ |
19,053,543 |
|
| Adjusted tangible common
equity ratio (non-GAAP) |
|
|
8.79 |
% |
|
|
8.61 |
% |
|
|
8.37 |
% |
|
|
8.35 |
% |
|
|
8.11 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
(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 Adjusted Efficiency Ratio, fully
tax-equivalent (non-GAAP) |
|
For the Quarter Ended |
|
|
6/30/2023 |
|
3/31/2023 |
|
12/31/2022 |
|
9/30/2022 |
|
6/30/2022 |
|
Net interest income (GAAP) |
|
$ |
147,132 |
|
|
$ |
152,212 |
|
|
$ |
165,220 |
|
|
$ |
155,876 |
|
|
$ |
142,461 |
|
| Tax-equivalent
adjustment(1) |
|
|
2,314 |
|
|
|
2,209 |
|
|
|
2,152 |
|
|
|
2,151 |
|
|
|
1,977 |
|
| Fully tax-equivalent net
interest income |
|
|
149,446 |
|
|
|
154,421 |
|
|
|
167,372 |
|
|
|
158,027 |
|
|
|
144,438 |
|
| Noninterest income (GAAP) |
|
|
32,493 |
|
|
|
29,999 |
|
|
|
29,975 |
|
|
|
29,181 |
|
|
|
34,539 |
|
| Securities (gains)/losses,
net |
|
|
314 |
|
|
|
1,104 |
|
|
|
153 |
|
|
|
1,055 |
|
|
|
2,089 |
|
| Unrealized (gain)/loss on
equity securities, net |
|
|
41 |
|
|
|
(193 |
) |
|
|
7 |
|
|
|
211 |
|
|
|
121 |
|
| Valuation adjustment on
servicing rights |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Adjusted revenue
(non-GAAP) |
|
$ |
182,294 |
|
|
$ |
185,331 |
|
|
$ |
197,507 |
|
|
$ |
188,474 |
|
|
$ |
181,187 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Total noninterest expenses
(GAAP) |
|
$ |
109,446 |
|
|
$ |
111,043 |
|
|
$ |
117,218 |
|
|
$ |
108,883 |
|
|
$ |
106,479 |
|
| Less: |
|
|
|
|
|
|
|
|
|
|
|
Core deposit and customer relationship intangibles
amortization |
|
|
1,715 |
|
|
|
1,788 |
|
|
|
1,841 |
|
|
|
1,856 |
|
|
|
2,083 |
|
|
Partnership investment in tax credit projects |
|
|
154 |
|
|
|
538 |
|
|
|
3,247 |
|
|
|
979 |
|
|
|
737 |
|
|
(Gain)/loss on sales/valuation of assets, net |
|
|
(3,372 |
) |
|
|
1,115 |
|
|
|
2,388 |
|
|
|
(251 |
) |
|
|
(3,230 |
) |
|
Acquisition, integration and restructuring costs |
|
|
1,892 |
|
|
|
1,673 |
|
|
|
2,442 |
|
|
|
2,156 |
|
|
|
2,412 |
|
| Core expenses
(non-GAAP) |
|
$ |
109,057 |
|
|
$ |
105,929 |
|
|
$ |
107,300 |
|
|
$ |
104,143 |
|
|
$ |
104,477 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Efficiency ratio (GAAP) |
|
|
60.93 |
% |
|
|
60.94 |
% |
|
|
60.05 |
% |
|
|
58.84 |
% |
|
|
60.16 |
% |
| Adjusted efficiency ratio,
fully tax-equivalent (non-GAAP) |
|
|
59.82 |
% |
|
|
57.16 |
% |
|
|
54.33 |
% |
|
|
55.26 |
% |
|
|
57.66 |
% |
| |
|
|
|
|
|
|
|
|
|
|
| Reconciliation of
Annualized Ratio of Core Expenses to Average Assets
(non-GAAP) |
|
|
|
|
|
|
|
|
|
|
| Total noninterest expenses
(GAAP) |
|
$ |
109,446 |
|
|
$ |
111,043 |
|
|
$ |
117,218 |
|
|
$ |
108,883 |
|
|
$ |
106,479 |
|
| Core expenses (non-GAAP) |
|
|
109,057 |
|
|
|
105,929 |
|
|
|
107,300 |
|
|
|
104,143 |
|
|
|
104,477 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Average assets |
|
$ |
20,221,511 |
|
|
$ |
20,118,005 |
|
|
$ |
19,913,849 |
|
|
$ |
19,775,341 |
|
|
$ |
19,559,091 |
|
| Total noninterest expenses to
average assets (GAAP) |
|
|
2.17 |
% |
|
|
2.24 |
% |
|
|
2.34 |
% |
|
|
2.18 |
% |
|
|
2.18 |
% |
| Core expenses to average
assets (non-GAAP) |
|
|
2.16 |
% |
|
|
2.14 |
% |
|
|
2.14 |
% |
|
|
2.09 |
% |
|
|
2.14 |
% |
| |
|
|
|
|
|
|
|
|
|
|
| Acquisition,
integration and restructuring costs |
|
|
|
|
|
|
|
|
|
|
| Salaries and employee
benefits |
|
$ |
93 |
|
|
$ |
74 |
|
|
$ |
424 |
|
|
$ |
365 |
|
|
$ |
275 |
|
| Professional fees |
|
|
1,068 |
|
|
|
934 |
|
|
|
1,587 |
|
|
|
1,480 |
|
|
|
1,779 |
|
| Advertising |
|
|
222 |
|
|
|
122 |
|
|
|
95 |
|
|
|
131 |
|
|
|
156 |
|
| Other noninterest
expenses |
|
|
509 |
|
|
|
543 |
|
|
|
336 |
|
|
|
180 |
|
|
|
202 |
|
| Total acquisition,
integration and restructuring costs |
|
$ |
1,892 |
|
|
$ |
1,673 |
|
|
$ |
2,442 |
|
|
$ |
2,156 |
|
|
$ |
2,412 |
|
| After tax impact on diluted
earnings per common share(1) |
|
$ |
0.03 |
|
|
$ |
0.03 |
|
|
$ |
0.05 |
|
|
$ |
0.04 |
|
|
$ |
0.04 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
(1) Computed on a tax-equivalent basis using an effective tax rate
of 21%. |
| HEARTLAND
FINANCIAL USA, INC. |
|
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
| DOLLARS
IN THOUSANDS, EXCEPT PER SHARE DATA |
|
|
|
For the Quarter EndedJune
30, |
|
For the Six Months EndedJune
30, |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Reconciliation of Annualized Return on Average Tangible
Common Equity (non-GAAP) |
|
|
|
|
|
|
|
|
| Net income available to common
stockholders (GAAP) |
|
$ |
47,404 |
|
|
$ |
49,861 |
|
|
$ |
98,167 |
|
|
$ |
90,937 |
|
|
Plus core deposit and customer relationship intangibles
amortization, net of tax(1) |
|
|
1,354 |
|
|
|
1,645 |
|
|
|
2,767 |
|
|
|
3,268 |
|
| Net income available
to common stockholders excluding intangible amortization
(non-GAAP) |
|
$ |
48,758 |
|
|
$ |
51,506 |
|
|
$ |
100,934 |
|
|
$ |
94,205 |
|
| |
|
|
|
|
|
|
|
|
| Average common equity
(GAAP) |
|
$ |
1,727,013 |
|
|
$ |
1,731,393 |
|
|
$ |
1,691,633 |
|
|
$ |
1,866,657 |
|
|
Less average goodwill |
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
Less average core deposit and customer relationship intangibles,
net |
|
|
22,481 |
|
|
|
29,845 |
|
|
|
23,355 |
|
|
|
30,883 |
|
| Average tangible
common equity (non-GAAP) |
|
$ |
1,128,527 |
|
|
$ |
1,125,543 |
|
|
$ |
1,092,273 |
|
|
$ |
1,259,769 |
|
| Annualized return on average
common equity (GAAP) |
|
|
11.01 |
% |
|
|
11.55 |
% |
|
|
11.70 |
% |
|
|
9.82 |
% |
| Annualized return on average
tangible common equity (non-GAAP) |
|
|
17.33 |
% |
|
|
18.35 |
% |
|
|
18.63 |
% |
|
|
15.08 |
% |
| |
|
|
|
|
|
|
|
|
| Reconciliation of
Annualized Net Interest Margin, Fully Tax-Equivalent
(non-GAAP) |
|
|
|
|
|
|
|
|
| Net Interest Income
(GAAP) |
|
$ |
147,132 |
|
|
$ |
142,461 |
|
|
$ |
299,344 |
|
|
$ |
277,140 |
|
|
Plus tax-equivalent adjustment(1) |
|
|
2,314 |
|
|
|
1,977 |
|
|
|
4,523 |
|
|
|
4,096 |
|
| Net interest income,
fully tax-equivalent (non-GAAP) |
|
$ |
149,446 |
|
|
$ |
144,438 |
|
|
$ |
303,867 |
|
|
$ |
281,236 |
|
| |
|
|
|
|
|
|
|
|
| Average earning assets |
|
$ |
18,523,552 |
|
|
$ |
17,987,734 |
|
|
$ |
18,458,462 |
|
|
$ |
17,873,037 |
|
| |
|
|
|
|
|
|
|
|
| Annualized net interest margin
(GAAP) |
|
|
3.19 |
% |
|
|
3.18 |
% |
|
|
3.27 |
% |
|
|
3.13 |
% |
| Annualized net interest
margin, fully tax-equivalent (non-GAAP) |
|
|
3.24 |
|
|
|
3.22 |
|
|
|
3.32 |
|
|
|
3.17 |
|
| Purchase accounting discount
amortization on loans included in annualized net interest
margin |
|
|
0.03 |
|
|
|
0.07 |
|
|
|
0.02 |
|
|
|
0.06 |
|
| |
|
|
|
|
|
|
|
|
|
(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 Adjusted Efficiency Ratio, fully
tax-equivalent (non-GAAP) |
|
For the Quarter EndedJune
30, |
|
For the Six Months EndedJune
30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Net interest income (GAAP) |
|
$ |
147,132 |
|
|
$ |
142,461 |
|
|
$ |
299,344 |
|
|
$ |
277,140 |
|
| Tax-equivalent
adjustment(1) |
|
|
2,314 |
|
|
|
1,977 |
|
|
|
4,523 |
|
|
|
4,096 |
|
| Fully tax-equivalent net
interest income |
|
|
149,446 |
|
|
|
144,438 |
|
|
|
303,867 |
|
|
|
281,236 |
|
| Noninterest income (GAAP) |
|
|
32,493 |
|
|
|
34,539 |
|
|
|
62,492 |
|
|
|
69,108 |
|
| Securities (gains)/losses,
net |
|
|
314 |
|
|
|
2,089 |
|
|
|
1,418 |
|
|
|
(783 |
) |
| Unrealized (gain)/loss on
equity securities, net |
|
|
41 |
|
|
|
121 |
|
|
|
(152 |
) |
|
|
404 |
|
| Valuation adjustment on
servicing rights |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,658 |
) |
| Adjusted revenue
(non-GAAP) |
|
$ |
182,294 |
|
|
$ |
181,187 |
|
|
$ |
367,625 |
|
|
$ |
348,307 |
|
| |
|
|
|
|
|
|
|
|
| Total noninterest expenses
(GAAP) |
|
$ |
109,446 |
|
|
$ |
106,479 |
|
|
$ |
220,489 |
|
|
$ |
217,276 |
|
| Less: |
|
|
|
|
|
|
|
|
|
Core deposit and customer relationship intangibles
amortization |
|
|
1,715 |
|
|
|
2,083 |
|
|
|
3,503 |
|
|
|
4,137 |
|
|
Partnership investment in tax credit projects |
|
|
154 |
|
|
|
737 |
|
|
|
692 |
|
|
|
814 |
|
|
(Gain)/loss on sales/valuation of assets, net |
|
|
(3,372 |
) |
|
|
(3,230 |
) |
|
|
(2,257 |
) |
|
|
(3,184 |
) |
|
Acquisition, integration and restructuring costs |
|
|
1,892 |
|
|
|
2,412 |
|
|
|
3,565 |
|
|
|
2,988 |
|
| Core expenses
(non-GAAP) |
|
$ |
109,057 |
|
|
$ |
104,477 |
|
|
$ |
214,986 |
|
|
$ |
212,521 |
|
| Efficiency ratio (GAAP) |
|
|
60.93 |
% |
|
|
60.16 |
% |
|
|
60.94 |
% |
|
|
62.75 |
% |
| Adjusted efficiency ratio,
fully tax-equivalent (non-GAAP) |
|
|
59.82 |
% |
|
|
57.66 |
% |
|
|
58.48 |
% |
|
|
61.02 |
% |
| |
|
|
|
|
|
|
|
|
| Reconciliation of
Annualized Ratio of Core Expenses to Average Assets
(non-GAAP) |
|
|
|
|
|
|
|
|
| Total noninterest expenses
(GAAP) |
|
$ |
109,446 |
|
|
$ |
106,479 |
|
|
$ |
220,489 |
|
|
$ |
217,276 |
|
| Core expenses (non-GAAP) |
|
|
109,057 |
|
|
|
104,477 |
|
|
|
214,986 |
|
|
|
212,521 |
|
| |
|
|
|
|
|
|
|
|
| Average assets |
|
$ |
20,221,511 |
|
|
$ |
19,559,091 |
|
|
$ |
20,170,044 |
|
|
$ |
19,395,391 |
|
| Total noninterest expenses to
average assets (GAAP) |
|
|
2.17 |
% |
|
|
2.18 |
% |
|
|
2.20 |
% |
|
|
2.26 |
% |
| Core expenses to average
assets (non-GAAP) |
|
|
2.16 |
% |
|
|
2.14 |
% |
|
|
2.15 |
% |
|
|
2.21 |
% |
| |
|
|
|
|
|
|
|
|
| Acquisition,
integration and restructuring costs |
|
|
|
|
|
|
|
|
| Salaries and employee
benefits |
|
$ |
93 |
|
|
$ |
275 |
|
|
$ |
167 |
|
|
$ |
615 |
|
| Professional fees |
|
|
1,068 |
|
|
|
1,779 |
|
|
|
2,002 |
|
|
|
2,015 |
|
| Advertising |
|
|
222 |
|
|
|
156 |
|
|
|
344 |
|
|
|
156 |
|
| Other noninterest
expenses |
|
|
509 |
|
|
|
202 |
|
|
|
1,052 |
|
|
|
202 |
|
| Total acquisition,
integration and restructuring costs |
|
$ |
1,892 |
|
|
$ |
2,412 |
|
|
$ |
3,565 |
|
|
$ |
2,988 |
|
| After tax impact on diluted
earnings per common share(1) |
|
$ |
0.03 |
|
|
$ |
0.04 |
|
|
$ |
0.07 |
|
|
$ |
0.06 |
|
| |
|
(1) Computed on a tax-equivalent basis using an effective tax rate
of 21%. |
| CONTACT: |
| Bryan R. McKeag |
| Executive Vice President |
| Chief Financial Officer |
| (563) 589-1994 |
| BMcKeag@htlf.com |
Heartland Financial USA (NASDAQ:HTLF)
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From Mar 2024 to Apr 2024
Heartland Financial USA (NASDAQ:HTLF)
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From Apr 2023 to Apr 2024
