Fourth Quarter
Highlights
- Net loss available to common
stockholders of ($72.4) million or ($1.69) per diluted common
share.
- Adjusted earnings available to
common stockholders of $45.6 million, or $1.06 per diluted common
share (non-GAAP), which excludes losses related to balance sheet
repositioning, losses on sale or write-down of assets, FDIC special
assessment expense, and restructuring costs.
- Loan growth of $196.2 million or
2%.
- Average customer deposits grew
$270.7 million or 2%.
- Common equity ratio increased to
9.27%; Tangible common equity ratio (non-GAAP) improved 80 basis
points to 6.53%.
- Net interest margin, fully
tax-equivalent (non-GAAP) improved 34 basis points to 3.52%.
- Consolidated final charter, with an
expense of $1.3 million in the quarter, and initiated HTLF 3.0, the
Company's new strategic plan which includes:
- 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:
- An $865.4 million balance sheet
repositioning resulting in a $140.0 million pre-tax loss.
- Centralized retail management span
of control with restructuring costs of $944,000.
- Footprint consolidation resulting
in $1.1 million in restructuring costs and $2.1 million in losses
on sales/valuations of facilities.
| |
Quarter Ended
December 31, |
|
Year Ended December 31, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Earnings Summary: |
|
|
|
|
|
|
|
|
Net income/(loss) available to common stockholders (in
millions) |
$ |
(72.4 |
) |
|
$ |
58.6 |
|
|
$ |
71.9 |
|
|
$ |
204.1 |
|
| Diluted earnings/(loss) per
common share |
|
(1.69 |
) |
|
|
1.37 |
|
|
|
1.68 |
|
|
|
4.79 |
|
| Return on average assets |
(1.42 |
)% |
|
|
1.21 |
% |
|
|
0.40 |
% |
|
|
1.08 |
% |
| Return on average common
equity |
|
(16.61 |
) |
|
|
15.02 |
|
|
|
4.19 |
|
|
|
11.74 |
|
|
Return on average tangible common equity
(non-GAAP)(1) |
|
(24.88 |
) |
|
|
25.19 |
|
|
|
6.91 |
|
|
|
18.56 |
|
| Net interest margin |
|
3.47 |
|
|
|
3.61 |
|
|
|
3.29 |
|
|
|
3.32 |
|
|
Net interest margin, fully tax-equivalent
(non-GAAP)(1) |
|
3.52 |
|
|
|
3.65 |
|
|
|
3.33 |
|
|
|
3.37 |
|
| Efficiency ratio |
|
293.86 |
|
|
|
60.05 |
|
|
|
79.58 |
|
|
|
61.03 |
|
|
Adjusted efficiency ratio, fully-tax equivalent
(non-GAAP)(1) |
|
59.31 |
|
|
|
54.33 |
|
|
|
59.06 |
|
|
|
57.74 |
|
| |
|
|
|
|
|
|
|
| Adjusted Earnings
Summary (1): |
|
|
|
|
|
|
|
| Adjusted earnings available to
common stockholders (in millions) |
$ |
45.6 |
|
|
$ |
62.5 |
|
|
$ |
193.9 |
|
|
$ |
209.5 |
|
| Adjusted diluted earnings per
common share |
|
1.06 |
|
|
|
1.46 |
|
|
|
4.53 |
|
|
|
4.91 |
|
| Adjusted annualized return on
average assets |
|
0.96 |
% |
|
|
1.28 |
% |
|
|
1.01 |
% |
|
|
1.11 |
% |
| Adjusted annualized return on
average common equity |
|
10.46 |
|
|
|
16.00 |
|
|
|
11.31 |
|
|
|
12.06 |
|
|
Adjusted annualized return on average tangible common equity |
|
16.38 |
|
|
|
26.77 |
|
|
|
17.82 |
|
|
|
19.03 |
|
| |
|
|
|
|
|
|
|
|
(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. |
|
“2023 was a year of significant progress and successful execution
of HTLF’s strategic plans. With the completion of the charter
consolidation initiative in the fourth quarter, we are now able to
focus on HTLF 3.0, a set of initiatives that will drive improved
efficiency, enhance EPS growth, deliver higher return on assets,
and more efficient use of capital. The balance sheet repositioning,
retail span of control and facilities optimization initiatives we
executed during the quarter represent the beginning of HTLF
3.0.” |
|
Bruce K. Lee, president and chief executive officer,
HTLF |
| |
DENVER, Jan. 29, 2024 (GLOBE NEWSWIRE) --
Heartland Financial USA, Inc. (NASDAQ: HTLF) today
reported the following results for the quarter ended December 31,
2023 compared to the quarter ended December 31, 2022:
- Net
income/(loss) available to common stockholders of ($72.4) million
compared to $58.6 million, a decrease of $131.0 million or 223%.
Adjusted earnings available to common stockholders(1) of
$45.6 million compared to $62.5 million, a decrease of $16.9
million or 27%.
- Earnings/(loss)
per diluted common share of ($1.69) compared to $1.37, a decrease
of $3.06. Adjusted diluted earnings per common share(1)
of $1.06 compared to $1.46, a decrease of $0.40.
- Net interest
income of $156.1 million compared to $165.2 million, a decrease of
$9.1 million or 5%.
- Return on
average assets of (1.42%) compared to 1.21%. Adjusted annualized
return on average assets(1) of 0.96% compared to
1.28%.
- Return on
average common equity of (16.61%) compared to 15.02%. Adjusted
annualized return on average common equity(1) of 10.46%
compared to 16.00%.
- Return on average tangible common
equity(1) of (24.88%) compared to 25.19%. Adjusted
annualized return on average tangible common equity(1)
of 16.38% compared to 26.77%.
HTLF reported the following results for the year
ended December 31, 2023 compared to the year ended December 31,
2022:
- Net income
available to common stockholders of $71.9 million compared to
$204.1 million, a decrease of $132.3 million or 65%. Adjusted
earnings available to common stockholders(1) of $193.9
million compared to $209.5 million, a decrease of $15.6 million or
7%.
- Earnings per
diluted common share of $1.68 compared to $4.79, a decrease of
$3.11. Adjusted diluted earnings per common share(1) of
$4.53 compared to $4.91, a decrease of $0.38 or 8%.
- Net interest
income of $601.2 million compared to $598.2 million, an increase of
$3.0 million or 1%.
- Return on
average assets of 0.40% compared to 1.08%. Adjusted annualized
return on average assets(1) of 1.01% compared to
1.11%.
- Return on
average common equity of 4.19% compared to 11.74%. Adjusted
annualized return on average common equity(1) of 11.31%
compared to 12.06%.
- Return on
average tangible common equity (non-GAAP) of 6.91% compared to
18.56%. Adjusted annualized return on average tangible common
equity(1) of 17.82% compared to 19.03%.
Commenting on HTLF's 2023 results, Bruce K. Lee,
HTLF’s president and chief executive officer, said, “2023 was a
year of significant progress and successful execution of HTLF’s
strategic plans. With the completion of the charter consolidation
initiative in the fourth quarter, we are now able to focus on HTLF
3.0, a set of initiatives that will drive improved efficiency,
enhance EPS growth, deliver higher return on assets, and more
efficient use of capital. The balance sheet repositioning, retail
span of control and facilities optimization initiatives we executed
during the quarter represent the beginning of HTLF 3.0.”
Announced and Initiated HTLF
3.0
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:
- A $865.4 million
balance sheet repositioning resulting in a $140.0 million pre-tax
loss.
- Centralized
retail management span of control with restructuring costs of
$944,000.
- Footprint
consolidation resulting in $1.1 million in restructuring costs and
$2.1 million in losses on sales/valuations of facilities.
Charter Consolidation Update
During the fourth quarter of 2023, Dubuque Bank
and Trust Company was consolidated into HTLF Bank, which
successfully completed the consolidation of all 11 charters. Total
consolidation restructuring costs were $17 million, of which $1.3
million were incurred in the fourth quarter of 2023.
Net Interest Income and Net Interest
Margin
Net interest margin was 3.47% (3.52% on a fully
tax-equivalent basis, non-GAAP) during the fourth quarter of 2023,
compared to 3.61% (3.65% on a fully tax-equivalent basis, non-GAAP)
during the fourth quarter of 2022.
Total interest income and average earning asset
changes for the fourth quarter of 2023 compared to the fourth
quarter of 2022 were:
- Total interest
income was $255.9 million compared to $204.7 million, an increase
of $51.2 million or 25%, primarily attributable to higher yields
and an increase in average loans.
- Total interest
income on a tax-equivalent basis was $257.9 million, an increase of
$51.1 million or 25%, from $206.9 million.
- Average earning
assets decreased $321.9 million or 2% to $17.85 billion compared to
$18.17 billion, which was primarily attributable to the balance
sheet repositioning completed in the fourth quarter of 2023.
- The average rate on earning assets
increased 121 basis points to 5.73% from 4.52%, primarily due to
recent interest rate increases.
Total interest expense and average
interest-bearing liability changes for the fourth quarter of 2023
compared to the fourth quarter of 2022 were:
- Total interest
expense was $99.7 million, an increase of $60.3 million from $39.5
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 180
basis points to 3.11% from 1.31%.
- Average
interest-bearing deposits increased $638.2 million or 6% to $11.95
billion from $11.31 billion, primarily due to growth in time
deposits. Total average interest-bearing deposits were 72% of total
average deposits compared to 65%.
- The average
interest rate paid on HTLF's interest-bearing deposits increased
179 basis points to 2.92% from 1.13%.
- Average borrowings increased $103.4
million or 15% to $773.7 million from $670.2 million, and the
average interest rate paid on borrowings was 5.99% compared to
4.30%.
Net interest income changes for the fourth
quarter of 2023 compared to the fourth quarter of 2022 were:
- Net interest
income totaled $156.1 million compared to $165.2 million, a
decrease of $9.1 million or 5%.
- Net interest income on a
tax-equivalent basis (non-GAAP) totaled $158.2 million compared to
$167.4 million, a decrease of $9.2 million or 5%.
Noninterest Income and Noninterest
Expense
Total noninterest income was ($111.8) million
during the fourth quarter of 2023 compared to $30.0 million during
the fourth quarter of 2022, a decrease of $141.8 million.
Significant changes by noninterest income category for the fourth
quarter of 2023 compared to the fourth quarter of 2022 were:
- Service charges
and fees increased $1.3 million or 7% to $18.7 million from $17.4
million, which was primarily attributable to an increase in debit
interchange volume.
- Net securities
losses totaled $140.0 million compared to net securities losses of
$153,000, which was an increase of $139.9 million attributable to
the balance sheet repositioning strategy executed in the
quarter.
- Net gains of sales of loans held
for sale decreased $794,000 to $94,000 compared to $888,000,
primarily due to a decrease of loans sold to the secondary market
as HTLF exits mortgage loan originations through
PrimeWest.
Total noninterest expense for the fourth quarter
of 2023 was $130.3 million compared to $117.2 million for the same
quarter of 2022, which was an increase of $13.1 million or 11%.
Significant changes within the noninterest expense category for the
fourth quarter of 2023 compared to the fourth quarter of 2022
were:
- Salaries and
employee benefits totaled $64.8 million compared to $61.6 million,
which was an increase of $3.2 million or 5%. The fourth quarter of
2023 included $813,000 higher severance related expenses and the
fourth quarter of 2022 included a $1.5 million benefit associated
with the employer tax credit. Increases in other components of
salary expenses during the fourth quarter of 2023 were largely
offset by lower incentive compensation expense.
- FDIC insurance
assessment of $10.3 million, which included a one-time special
assessment of $8.1 million in the fourth quarter of 2023 compared
to $1.9 million in the fourth quarter of 2022, which was an
increase of $8.4 million.
- Acquisition,
integration and restructuring costs totaled $4.4 million compared
to $2.4 million, an increase of $1.9 million or 79% due to the
addition of HTLF 3.0 initiatives and the completion of the charter
consolidation project.
- Partnership
investment in tax credit projects increased $326,000 or 10% to $3.6
million compared to $3.2 million. The expense is dependent upon the
number and timing of tax credit projects placed into service.
HTLF's effective tax rate was 27.97% for the
fourth quarter of 2023 compared to 18.67% for the fourth quarter of
2022. The following items impacted HTLF's fourth quarter 2023 and
2022 tax calculations:
- Various tax
credits of $3.8 million compared to $3.6 million.
- Tax expense of
$1.3 million compared to $561,000 resulting from disallowed
interest expense related to tax-exempt loans and securities,
aligning with the increases in total interest expense.
- Tax-exempt
interest income as a percentage of pre-tax income of (7.93%)
compared to 10.85%.
For the years ended December 31, 2023 and 2022,
HTLF's effective tax rate was 17.42% and 20.76%, respectively.
Total Assets, Total Loans and Total
Deposits
Total assets were $19.41 billion at December 31,
2023, a decrease of $832.5 million or 4% from $20.24 billion at
year-end 2022. Securities represented 29% and 35% of total assets
at December 31, 2023, and December 31, 2022, respectively,
primarily due to the balance sheet repositioning.
Total loans held to maturity were $12.07 billion
at December 31, 2023, compared to $11.87 billion at September 30,
2023 and $11.43 billion at December 31, 2022. Loans increased
$196.2 million or 2% during the fourth quarter of 2023 and $640.3
million or 6% since year-end 2022.
Significant changes by loan category at December
31, 2023 compared to September 30, 2023 included:
- Commercial and
business lending, which includes commercial and industrial, PPP,
and owner occupied commercial real estate loans, increased $267.8
million or 4% to $6.29 billion at December 31, 2023, compared to
$6.03 billion at September 30, 2023.
- Commercial real
estate lending, which includes non-owner occupied commercial real
estate and construction loans, decreased $120.5 million or 3% to
$3.57 billion from $3.69 billion.
- Agricultural and
agricultural real estate loans totaled $919.2 million compared to
$842.1 million, an increase of $77.1 million or 9%.
- Residential
loans totaled $797.8 million compared to $813.8 million, a decrease
of $16.0 million or 2%.
- Consumer loans decreased $12.2
million or 2% to $493.2 million from $505.4 million.
Significant changes by loan category at December
31, 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 $552.3
million or 10% to $6.29 billion at December 31, 2023, compared to
$5.74 billion at December 31, 2022.
- Commercial real
estate lending, which includes non-owner occupied commercial real
estate and construction loans, increased $158.4 million or 5% to
$3.57 billion from $3.41 billion.
- Agricultural and
agricultural real estate loans totaled $919.2 million, a decrease
of $1.3 million or less than 1% from $920.5 million.
- Residential loans totaled $797.8
million compared to $853.4 million, a decrease of $55.5 million or
7%.
- Consumer loans decreased $13.5
million or 3% to $493.2 million from $506.7 million.
Total deposits were $16.20 billion as of
December 31, 2023, compared to $17.10 billion at September 30,
2023, which was a decrease of $899.3 million or 5%. Total deposits
were $16.2 billion as of December 31, 2023, compared to $17.51
billion at December 31, 2022, a decrease of $1.31 billion or
7%.
Total customer deposits were $14.86 billion as
of December 31, 2023, compared to $14.80 billion at September 30,
2023, which was an increase of $58.8 million or less than 1%.
Significant customer deposit changes by category at December 31,
2023, compared to September 30, 2023, included:
- Customer demand
deposits decreased $292.5 million or 6% to $4.50 billion compared
to $4.79 billion.
- Customer savings
deposits increased $220.8 million or 3% to $8.41 billion compared
to $8.19 billion.
- Customer time deposits increased
$130.5 million or 7% to $1.94 billion compared to $1.81
billion.
Total customer deposits were $14.86 billion at
December 31, 2023 compared to $15.22 billion at December 31, 2022,
which was a decrease of $367.3 million or 2%. Significant customer
deposit changes by category at December 31, 2023 compared to
December 31, 2022, included:
- Customer demand
deposits decreased $1.20 billion or 21% to $4.50 billion compared
to $5.70 billion.
- Customer savings
deposits decreased $259.7 million or 3% to $8.41 billion compared
to $8.67 billion.
- Customer time deposits increased
$1.09 billion to $1.94 billion compared to $851.5 million.
Total wholesale and institutional deposits were
$1.35 billion as of December 31, 2023, which was a decrease of
$958.1 million or 42% from $2.30 billion at September 30, 2023.
Significant wholesale and institutional deposit changes by category
at December 31, 2023, compared to September 30, 2023, included:
- Wholesale and
institutional savings deposits decreased $170.1 million or 30% to
$394.4 million compared to $564.5 million.
- Wholesale time deposits decreased
$788.0 million or 45% to $950.9 million compared to $1.74
billion.
Total wholesale and institutional deposits were
$1.35 billion as of December 31, 2023, which was a decrease of
$943.9 million or 41% from $2.29 billion at December 31, 2022.
Significant wholesale and institutional deposit changes by category
at December 31, 2023 compared to December 31, 2022 included:
- Wholesale and
institutional savings deposits decreased $929.1 million or 70% to
$394.4 million compared to $1.32 billion.
- Wholesale time deposits decreased
$14.8 million or 2% to $950.9 million compared to $965.7
million.
Provision and Allowance
Provision and Allowance for Credit Losses
for Loans
Provision for credit losses for loans for the fourth quarter of
2023 was $12.8 million, which was an increase of $10.7 million from
$2.1 million of provision benefit recorded in the fourth quarter of
2022. The provision expense for the fourth quarter of 2023 was
primarily impacted by a customer that moved to non accrual due to
its abrupt decision to discontinue business operations.
HTLF's allowance for credit losses for loans
totaled $122.6 million at December 31, 2023, compared to $109.5
million at December 31, 2022, respectively. The following items
impacted HTLF's allowance for credit losses for loans for the year
ended December 31, 2023:
- Provision
expense for the year ended December 31, 2023, totaled $25.4
million.
- Net charge-offs of $12.4 million
were recorded for the year or 0.11% of average loans. Net
charge-offs of $392,000 were recorded in the fourth quarter of 2022
or 0.01% of average loans.
Provision and Allowance for Credit Losses
for Unfunded Commitments
HTLF's allowance for unfunded commitments totaled $16.5 million and
$20.2 million at December 31, 2023 and December 31, 2022,
respectively. The following impacted HTLF's allowance for credit
losses for unfunded commitments during 2023:
- Provision
benefit for the year ended December 31, 2023, totaled $3.7
million.
- Unfunded commitments decreased
$103.9 million or 2% to $4.63 billion at December 31, 2023 compared
to $4.73 billion at December 31, 2022.
Total Provision and Allowance for Lending
Related Credit Losses
The total provision expense for lending related credit losses was
$11.7 million for the fourth quarter of 2023 compared to $3.4
million for the fourth quarter of 2022. The total allowance for
lending related credit losses was $139.0 million at December 31,
2023, which was 1.15% of total loans as of December 31, 2023,
compared to $129.7 million or 1.13% of total loans as of December
31, 2022.
Nonperforming Assets
Nonperforming assets increased $43.6 million or
65% to $110.5 million, which was 0.57% of total assets at December
31, 2023, compared to $66.9 million or 0.33% of total assets at
December 31, 2022. The increase was primarily driven by a
well-collateralized long-term manufacturing customer who is
experiencing cash flow challenges due to a recent acquisition.
Nonperforming loans were $97.9 million or 0.81% of total loans at
December 31, 2023, compared to $58.5 million or 0.51% of total
loans at December 31, 2022. At December 31, 2023, loans delinquent
30-89 days were 0.09% of total loans compared to 0.04% of total
loans at December 31, 2022.
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.
Conference Call Details
HTLF will host a conference call for
shareholders, analysts and other interested parties at 5:00 p.m.
EDT today. To join 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 January
28, 2025, by logging on to www.htlf.com.
About HTLF
Heartland Financial USA, Inc., operating under
the brand name HTLF, is a bank holding company with assets of
$19.41 billion. HTLF has banks serving communities in Arizona,
California, Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri,
Montana, New Mexico, Texas and Wisconsin. HTLF is committed to its
core commercial business, supported by a strong retail operation,
and provides a diversified line of financial services including
treasury management, 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, 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 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 Quarter Ended
December 31, |
|
For the Year Ended
December 31, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Interest Income |
|
|
|
|
|
|
|
|
Interest and fees on loans |
$ |
192,861 |
|
|
$ |
143,970 |
|
|
$ |
697,997 |
|
|
$ |
477,970 |
|
| Interest on securities: |
|
|
|
|
|
|
|
| Taxable |
|
54,573 |
|
|
|
53,178 |
|
|
|
223,521 |
|
|
|
169,544 |
|
| Nontaxable |
|
6,278 |
|
|
|
6,132 |
|
|
|
25,268 |
|
|
|
24,006 |
|
| Interest on federal funds
sold |
|
— |
|
|
|
11 |
|
|
|
3 |
|
|
|
11 |
|
| Interest on deposits with
other banks and short-term investments |
|
2,174 |
|
|
|
1,410 |
|
|
|
7,007 |
|
|
|
3,125 |
|
| Total Interest
Income |
|
255,886 |
|
|
|
204,701 |
|
|
|
953,796 |
|
|
|
674,656 |
|
| Interest
Expense |
|
|
|
|
|
|
|
| Interest on deposits |
|
88,071 |
|
|
|
32,215 |
|
|
|
319,688 |
|
|
|
56,880 |
|
| Interest on borrowings |
|
5,874 |
|
|
|
2,223 |
|
|
|
10,311 |
|
|
|
2,717 |
|
| Interest on term debt |
|
5,804 |
|
|
|
5,043 |
|
|
|
22,560 |
|
|
|
16,823 |
|
| Total Interest
Expense |
|
99,749 |
|
|
|
39,481 |
|
|
|
352,559 |
|
|
|
76,420 |
|
| Net Interest
Income |
|
156,137 |
|
|
|
165,220 |
|
|
|
601,237 |
|
|
|
598,236 |
|
| Provision for credit
losses |
|
11,738 |
|
|
|
3,387 |
|
|
|
21,707 |
|
|
|
15,370 |
|
| Net Interest Income
After Provision for Credit Losses |
|
144,399 |
|
|
|
161,833 |
|
|
|
579,530 |
|
|
|
582,866 |
|
| Noninterest
Income |
|
|
|
|
|
|
|
| Service charges and fees |
|
18,708 |
|
|
|
17,432 |
|
|
|
74,024 |
|
|
|
68,031 |
|
| Loan servicing income |
|
158 |
|
|
|
790 |
|
|
|
1,561 |
|
|
|
2,741 |
|
| Trust fees |
|
4,905 |
|
|
|
5,440 |
|
|
|
20,715 |
|
|
|
22,570 |
|
| Brokerage and insurance
commissions |
|
729 |
|
|
|
629 |
|
|
|
2,794 |
|
|
|
2,986 |
|
| Capital market fees |
|
1,676 |
|
|
|
1,824 |
|
|
|
10,007 |
|
|
|
11,543 |
|
| Securities gains (losses),
net |
|
(140,007 |
) |
|
|
(153 |
) |
|
|
(141,539 |
) |
|
|
(425 |
) |
| Unrealized gain (loss) on
equity securities, net |
|
75 |
|
|
|
(7 |
) |
|
|
240 |
|
|
|
(622 |
) |
| Net gains on sale of loans
held for sale |
|
94 |
|
|
|
888 |
|
|
|
3,880 |
|
|
|
9,032 |
|
| Valuation adjustment on
servicing rights |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,658 |
|
| Income on bank owned life
insurance |
|
729 |
|
|
|
600 |
|
|
|
3,771 |
|
|
|
2,341 |
|
| Other noninterest income |
|
1,132 |
|
|
|
2,532 |
|
|
|
3,621 |
|
|
|
8,409 |
|
| Total Noninterest
Income |
|
(111,801 |
) |
|
|
29,975 |
|
|
|
(20,926 |
) |
|
|
128,264 |
|
| Noninterest
Expense |
|
|
|
|
|
|
|
| Salaries and employee
benefits |
|
64,766 |
|
|
|
61,611 |
|
|
|
251,276 |
|
|
|
254,478 |
|
| Occupancy |
|
6,509 |
|
|
|
6,905 |
|
|
|
26,847 |
|
|
|
28,155 |
|
| Furniture and equipment |
|
2,901 |
|
|
|
3,019 |
|
|
|
11,599 |
|
|
|
12,499 |
|
| Professional fees |
|
17,060 |
|
|
|
16,320 |
|
|
|
58,667 |
|
|
|
58,606 |
|
| FDIC insurance
assessments |
|
10,313 |
|
|
|
1,866 |
|
|
|
19,940 |
|
|
|
7,000 |
|
| Advertising |
|
1,677 |
|
|
|
1,829 |
|
|
|
8,347 |
|
|
|
6,221 |
|
| Core deposit and customer
relationship intangibles amortization |
|
1,611 |
|
|
|
1,841 |
|
|
|
6,739 |
|
|
|
7,834 |
|
| Other real estate and loan
collection expenses, net |
|
505 |
|
|
|
373 |
|
|
|
1,489 |
|
|
|
950 |
|
| (Gain) loss on
sales/valuations of assets, net |
|
2,072 |
|
|
|
2,388 |
|
|
|
(77 |
) |
|
|
(1,047 |
) |
| Acquisition, integration and
restructuring costs |
|
4,365 |
|
|
|
2,442 |
|
|
|
10,359 |
|
|
|
7,586 |
|
| Partnership investment in tax
credit projects |
|
3,573 |
|
|
|
3,247 |
|
|
|
5,401 |
|
|
|
5,040 |
|
| Other noninterest
expenses |
|
14,933 |
|
|
|
15,377 |
|
|
|
61,240 |
|
|
|
56,055 |
|
| Total Noninterest
Expense |
|
130,285 |
|
|
|
117,218 |
|
|
|
461,827 |
|
|
|
443,377 |
|
| Income Before Income
Taxes |
|
(97,687 |
) |
|
|
74,590 |
|
|
|
96,777 |
|
|
|
267,753 |
|
| Income taxes |
|
(27,324 |
) |
|
|
13,936 |
|
|
|
16,857 |
|
|
|
55,573 |
|
| Net
Income/(Loss) |
|
(70,363 |
) |
|
|
60,654 |
|
|
|
79,920 |
|
|
|
212,180 |
|
| Preferred dividends |
|
(2,012 |
) |
|
|
(2,012 |
) |
|
|
(8,050 |
) |
|
|
(8,050 |
) |
| Net Income/(Loss)
Available to Common Stockholders |
$ |
(72,375 |
) |
|
$ |
58,642 |
|
|
$ |
71,870 |
|
|
$ |
204,130 |
|
| Earnings/(loss) per
common share-diluted |
$ |
(1.69 |
) |
|
$ |
1.37 |
|
|
$ |
1.68 |
|
|
$ |
4.79 |
|
| Weighted average
shares outstanding-diluted |
|
42,838,405 |
|
|
|
42,699,752 |
|
|
|
42,791,795 |
|
|
|
42,630,703 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| HEARTLAND
FINANCIAL USA, INC. |
|
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
| DOLLARS
IN THOUSANDS, EXCEPT PER SHARE DATA |
|
|
For the Quarter Ended |
|
|
12/31/2023 |
|
9/30/2023 |
|
6/30/2023 |
|
3/31/2023 |
|
12/31/2022 |
|
Interest Income |
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
$ |
192,861 |
|
|
$ |
182,394 |
|
|
$ |
168,899 |
|
|
$ |
153,843 |
|
|
$ |
143,970 |
|
| Interest on securities: |
|
|
|
|
|
|
|
|
|
| Taxable |
|
54,573 |
|
|
|
54,800 |
|
|
|
58,172 |
|
|
|
55,976 |
|
|
|
53,178 |
|
| Nontaxable |
|
6,278 |
|
|
|
6,584 |
|
|
|
6,378 |
|
|
|
6,028 |
|
|
|
6,132 |
|
| Interest on federal funds
sold |
|
— |
|
|
|
3 |
|
|
|
— |
|
|
|
— |
|
|
|
11 |
|
| Interest on deposits with
other banks and short-term investments |
|
2,174 |
|
|
|
1,651 |
|
|
|
2,051 |
|
|
|
1,131 |
|
|
|
1,410 |
|
| Total Interest
Income |
|
255,886 |
|
|
|
245,432 |
|
|
|
235,500 |
|
|
|
216,978 |
|
|
|
204,701 |
|
| Interest
Expense |
|
|
|
|
|
|
|
|
|
| Interest on deposits |
|
88,071 |
|
|
|
92,744 |
|
|
|
81,975 |
|
|
|
56,898 |
|
|
|
32,215 |
|
| Interest on borrowings |
|
5,874 |
|
|
|
1,167 |
|
|
|
848 |
|
|
|
2,422 |
|
|
|
2,223 |
|
| Interest on term debt |
|
5,804 |
|
|
|
5,765 |
|
|
|
5,545 |
|
|
|
5,446 |
|
|
|
5,043 |
|
| Total Interest
Expense |
|
99,749 |
|
|
|
99,676 |
|
|
|
88,368 |
|
|
|
64,766 |
|
|
|
39,481 |
|
| Net Interest
Income |
|
156,137 |
|
|
|
145,756 |
|
|
|
147,132 |
|
|
|
152,212 |
|
|
|
165,220 |
|
| Provision for credit
losses |
|
11,738 |
|
|
|
1,516 |
|
|
|
5,379 |
|
|
|
3,074 |
|
|
|
3,387 |
|
| Net Interest Income
After Provision for Credit Losses |
|
144,399 |
|
|
|
144,240 |
|
|
|
141,753 |
|
|
|
149,138 |
|
|
|
161,833 |
|
| Noninterest
Income |
|
|
|
|
|
|
|
|
|
| Service charges and fees |
|
18,708 |
|
|
|
18,553 |
|
|
|
19,627 |
|
|
|
17,136 |
|
|
|
17,432 |
|
| Loan servicing income |
|
158 |
|
|
|
278 |
|
|
|
411 |
|
|
|
714 |
|
|
|
790 |
|
| Trust fees |
|
4,905 |
|
|
|
4,734 |
|
|
|
5,419 |
|
|
|
5,657 |
|
|
|
5,440 |
|
| Brokerage and insurance
commissions |
|
729 |
|
|
|
692 |
|
|
|
677 |
|
|
|
696 |
|
|
|
629 |
|
| Capital markets fees |
|
1,676 |
|
|
|
1,845 |
|
|
|
4,037 |
|
|
|
2,449 |
|
|
|
1,824 |
|
| Securities gains (losses),
net |
|
(140,007 |
) |
|
|
(114 |
) |
|
|
(314 |
) |
|
|
(1,104 |
) |
|
|
(153 |
) |
| Unrealized gain (loss) on
equity securities, net |
|
75 |
|
|
|
13 |
|
|
|
(41 |
) |
|
|
193 |
|
|
|
(7 |
) |
| Net gains on sale of loans
held for sale |
|
94 |
|
|
|
905 |
|
|
|
1,050 |
|
|
|
1,831 |
|
|
|
888 |
|
| Valuation adjustment on
servicing rights |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Income on bank owned life
insurance |
|
729 |
|
|
|
858 |
|
|
|
1,220 |
|
|
|
964 |
|
|
|
600 |
|
| Other noninterest income |
|
1,132 |
|
|
|
619 |
|
|
|
407 |
|
|
|
1,463 |
|
|
|
2,532 |
|
| Total Noninterest
Income |
|
(111,801 |
) |
|
|
28,383 |
|
|
|
32,493 |
|
|
|
29,999 |
|
|
|
29,975 |
|
| Noninterest
Expense |
|
|
|
|
|
|
|
|
|
| Salaries and employee
benefits |
|
64,766 |
|
|
|
62,262 |
|
|
|
62,099 |
|
|
|
62,149 |
|
|
|
61,611 |
|
| Occupancy |
|
6,509 |
|
|
|
6,438 |
|
|
|
6,691 |
|
|
|
7,209 |
|
|
|
6,905 |
|
| Furniture and equipment |
|
2,901 |
|
|
|
2,720 |
|
|
|
3,063 |
|
|
|
2,915 |
|
|
|
3,019 |
|
| Professional fees |
|
17,060 |
|
|
|
13,616 |
|
|
|
15,194 |
|
|
|
12,797 |
|
|
|
16,320 |
|
| FDIC insurance
assessments |
|
10,313 |
|
|
|
3,313 |
|
|
|
3,035 |
|
|
|
3,279 |
|
|
|
1,866 |
|
| Advertising |
|
1,677 |
|
|
|
1,633 |
|
|
|
3,052 |
|
|
|
1,985 |
|
|
|
1,829 |
|
| Core deposit and customer
relationship intangibles amortization |
|
1,611 |
|
|
|
1,625 |
|
|
|
1,715 |
|
|
|
1,788 |
|
|
|
1,841 |
|
| Other real estate and loan
collection expenses, net |
|
505 |
|
|
|
481 |
|
|
|
348 |
|
|
|
155 |
|
|
|
373 |
|
| (Gain) loss on
sales/valuations of assets, net |
|
2,072 |
|
|
|
108 |
|
|
|
(3,372 |
) |
|
|
1,115 |
|
|
|
2,388 |
|
| Acquisition, integration and
restructuring costs |
|
4,365 |
|
|
|
2,429 |
|
|
|
1,892 |
|
|
|
1,673 |
|
|
|
2,442 |
|
| Partnership investment in tax
credit projects |
|
3,573 |
|
|
|
1,136 |
|
|
|
154 |
|
|
|
538 |
|
|
|
3,247 |
|
| Other noninterest
expenses |
|
14,933 |
|
|
|
15,292 |
|
|
|
15,575 |
|
|
|
15,440 |
|
|
|
15,377 |
|
| Total Noninterest
Expense |
|
130,285 |
|
|
|
111,053 |
|
|
|
109,446 |
|
|
|
111,043 |
|
|
|
117,218 |
|
| Income Before Income
Taxes |
|
(97,687 |
) |
|
|
61,570 |
|
|
|
64,800 |
|
|
|
68,094 |
|
|
|
74,590 |
|
| Income taxes |
|
(27,324 |
) |
|
|
13,479 |
|
|
|
15,384 |
|
|
|
15,318 |
|
|
|
13,936 |
|
| Net
Income/(Loss) |
|
(70,363 |
) |
|
|
48,091 |
|
|
|
49,416 |
|
|
|
52,776 |
|
|
|
60,654 |
|
| Preferred dividends |
|
(2,012 |
) |
|
|
(2,013 |
) |
|
|
(2,012 |
) |
|
|
(2,013 |
) |
|
|
(2,012 |
) |
| Net Income/(Loss)
Available to Common Stockholders |
$ |
(72,375 |
) |
|
$ |
46,078 |
|
|
$ |
47,404 |
|
|
$ |
50,763 |
|
|
$ |
58,642 |
|
| Earnings/(loss) per
common share-diluted |
$ |
(1.69 |
) |
|
$ |
1.08 |
|
|
$ |
1.11 |
|
|
$ |
1.19 |
|
|
$ |
1.37 |
|
| Weighted average
shares outstanding-diluted |
|
42,838,405 |
|
|
|
42,812,563 |
|
|
|
42,757,603 |
|
|
|
42,742,878 |
|
|
|
42,699,752 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| HEARTLAND
FINANCIAL USA, INC. |
|
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
| DOLLARS
IN THOUSANDS, EXCEPT PER SHARE DATA |
|
|
As of |
|
|
12/31/2023 |
|
9/30/2023 |
|
6/30/2023 |
|
3/31/2023 |
|
12/31/2022 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
275,554 |
|
|
$ |
248,756 |
|
|
$ |
317,303 |
|
|
$ |
274,354 |
|
|
$ |
309,045 |
|
| Interest-bearing deposits with
other banks and other short-term investments |
|
47,459 |
|
|
|
99,239 |
|
|
|
82,884 |
|
|
|
87,757 |
|
|
|
54,042 |
|
| Cash and cash equivalents |
|
323,013 |
|
|
|
347,995 |
|
|
|
400,187 |
|
|
|
362,111 |
|
|
|
363,087 |
|
| Time deposits in other
financial institutions |
|
1,240 |
|
|
|
1,490 |
|
|
|
1,490 |
|
|
|
1,740 |
|
|
|
1,740 |
|
| Securities: |
|
|
|
|
|
|
|
|
|
|
Carried at fair value |
|
4,646,891 |
|
|
|
5,482,687 |
|
|
|
5,798,041 |
|
|
|
6,096,657 |
|
|
|
6,147,144 |
|
|
Held to maturity, at cost |
|
838,241 |
|
|
|
835,468 |
|
|
|
834,673 |
|
|
|
832,098 |
|
|
|
829,403 |
|
|
Other investments, at cost |
|
91,277 |
|
|
|
90,001 |
|
|
|
72,291 |
|
|
|
72,364 |
|
|
|
74,567 |
|
| Loans held for sale |
|
5,071 |
|
|
|
6,262 |
|
|
|
14,353 |
|
|
|
10,425 |
|
|
|
5,277 |
|
| Loans: |
|
|
|
|
|
|
|
|
|
|
Held to maturity |
|
12,068,645 |
|
|
|
11,872,436 |
|
|
|
11,717,974 |
|
|
|
11,495,353 |
|
|
|
11,428,352 |
|
|
Allowance for credit losses |
|
(122,566 |
) |
|
|
(110,208 |
) |
|
|
(111,198 |
) |
|
|
(112,707 |
) |
|
|
(109,483 |
) |
| Loans, net |
|
11,946,079 |
|
|
|
11,762,228 |
|
|
|
11,606,776 |
|
|
|
11,382,646 |
|
|
|
11,318,869 |
|
| Premises, furniture and
equipment, net |
|
181,070 |
|
|
|
187,436 |
|
|
|
190,420 |
|
|
|
191,267 |
|
|
|
197,330 |
|
| Goodwill |
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
| Core deposit and customer
relationship intangibles, net |
|
18,415 |
|
|
|
20,026 |
|
|
|
21,651 |
|
|
|
23,366 |
|
|
|
25,154 |
|
| Servicing rights, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,840 |
|
| Cash surrender value on life
insurance |
|
197,085 |
|
|
|
196,694 |
|
|
|
195,793 |
|
|
|
194,419 |
|
|
|
193,403 |
|
| Other real estate, net |
|
12,548 |
|
|
|
14,362 |
|
|
|
2,677 |
|
|
|
7,438 |
|
|
|
8,401 |
|
| Other assets |
|
574,772 |
|
|
|
609,139 |
|
|
|
510,359 |
|
|
|
432,008 |
|
|
|
496,008 |
|
| Total
Assets |
$ |
19,411,707 |
|
|
$ |
20,129,793 |
|
|
$ |
20,224,716 |
|
|
$ |
20,182,544 |
|
|
$ |
20,244,228 |
|
| Liabilities and
Equity |
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
| Deposits: |
|
|
|
|
|
|
|
|
|
|
Demand |
$ |
4,500,304 |
|
|
$ |
4,792,813 |
|
|
$ |
4,897,858 |
|
|
$ |
5,119,554 |
|
|
$ |
5,701,340 |
|
|
Savings |
|
8,805,597 |
|
|
|
8,754,911 |
|
|
|
8,772,596 |
|
|
|
9,256,609 |
|
|
|
9,994,391 |
|
|
Time |
|
2,895,813 |
|
|
|
3,553,269 |
|
|
|
3,993,089 |
|
|
|
3,305,183 |
|
|
|
1,817,278 |
|
| Total deposits |
|
16,201,714 |
|
|
|
17,100,993 |
|
|
|
17,663,543 |
|
|
|
17,681,346 |
|
|
|
17,513,009 |
|
| Borrowings |
|
622,255 |
|
|
|
392,634 |
|
|
|
44,364 |
|
|
|
92,337 |
|
|
|
376,117 |
|
| Term debt |
|
372,396 |
|
|
|
372,059 |
|
|
|
372,403 |
|
|
|
372,097 |
|
|
|
371,753 |
|
| Accrued expenses and other
liabilities |
|
282,225 |
|
|
|
438,577 |
|
|
|
285,416 |
|
|
|
207,359 |
|
|
|
248,294 |
|
| Total
Liabilities |
|
17,478,590 |
|
|
|
18,304,263 |
|
|
|
18,365,726 |
|
|
|
18,353,139 |
|
|
|
18,509,173 |
|
| Stockholders'
Equity |
|
|
|
|
|
|
|
|
|
| Preferred equity |
|
110,705 |
|
|
|
110,705 |
|
|
|
110,705 |
|
|
|
110,705 |
|
|
|
110,705 |
|
| Common stock |
|
42,688 |
|
|
|
42,656 |
|
|
|
42,645 |
|
|
|
42,559 |
|
|
|
42,467 |
|
| Capital surplus |
|
1,090,740 |
|
|
|
1,088,267 |
|
|
|
1,087,358 |
|
|
|
1,084,112 |
|
|
|
1,080,964 |
|
| Retained earnings |
|
1,141,501 |
|
|
|
1,226,740 |
|
|
|
1,193,522 |
|
|
|
1,158,948 |
|
|
|
1,120,925 |
|
| Accumulated other
comprehensive income/(loss) |
|
(452,517 |
) |
|
|
(642,838 |
) |
|
|
(575,240 |
) |
|
|
(566,919 |
) |
|
|
(620,006 |
) |
| Total
Equity |
|
1,933,117 |
|
|
|
1,825,530 |
|
|
|
1,858,990 |
|
|
|
1,829,405 |
|
|
|
1,735,055 |
|
| Total Liabilities and
Equity |
$ |
19,411,707 |
|
|
$ |
20,129,793 |
|
|
$ |
20,224,716 |
|
|
$ |
20,182,544 |
|
|
$ |
20,244,228 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| HEARTLAND
FINANCIAL USA, INC. |
|
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
|
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA |
| |
For the Quarter Ended |
|
|
12/31/2023 |
|
9/30/2023 |
|
6/30/2023 |
|
3/31/2023 |
|
12/31/2022 |
|
Average Balances |
|
|
|
|
|
|
|
|
|
|
Assets |
$ |
19,667,825 |
|
|
$ |
20,207,920 |
|
|
$ |
20,221,511 |
|
|
$ |
20,118,005 |
|
|
$ |
19,913,849 |
|
| Loans, net of unearned |
|
11,938,272 |
|
|
|
11,800,064 |
|
|
|
11,625,442 |
|
|
|
11,378,078 |
|
|
|
11,117,513 |
|
| Total deposits |
|
16,709,394 |
|
|
|
17,507,813 |
|
|
|
17,689,138 |
|
|
|
17,505,867 |
|
|
|
17,319,218 |
|
|
Customer deposits |
|
14,969,948 |
|
|
|
14,699,235 |
|
|
|
14,655,535 |
|
|
|
15,123,181 |
|
|
|
15,739,698 |
|
| Earning assets |
|
17,853,957 |
|
|
|
18,439,010 |
|
|
|
18,523,552 |
|
|
|
18,392,649 |
|
|
|
18,175,838 |
|
| Interest-bearing
liabilities |
|
12,721,680 |
|
|
|
13,158,631 |
|
|
|
13,209,794 |
|
|
|
12,582,234 |
|
|
|
11,980,032 |
|
| Common equity |
|
1,729,086 |
|
|
|
1,746,818 |
|
|
|
1,727,013 |
|
|
|
1,655,860 |
|
|
|
1,548,739 |
|
| Total stockholders'
equity |
|
1,839,791 |
|
|
|
1,857,523 |
|
|
|
1,837,718 |
|
|
|
1,766,565 |
|
|
|
1,659,444 |
|
| Tangible common equity
(non-GAAP)(1) |
|
1,133,888 |
|
|
|
1,149,992 |
|
|
|
1,128,527 |
|
|
|
1,055,617 |
|
|
|
946,688 |
|
| |
|
|
|
|
|
|
|
|
|
| Key Performance
Ratios |
|
|
|
|
|
|
|
|
|
| Annualized return on average
assets |
(1.42 |
)% |
|
|
0.94 |
% |
|
|
0.98 |
% |
|
|
1.06 |
% |
|
|
1.21 |
% |
| Adjusted annualized return on
average assets (non-GAAP)(1) |
|
0.96 |
|
|
|
0.98 |
|
|
|
0.96 |
|
|
|
1.12 |
|
|
|
1.28 |
|
| Annualized return on average
common equity (GAAP) |
|
(16.61 |
) |
|
|
10.47 |
|
|
|
11.01 |
|
|
|
12.43 |
|
|
|
15.02 |
|
| Adjusted annualized return on
average common equity (non-GAAP)(1) |
|
10.46 |
|
|
|
10.92 |
|
|
|
10.80 |
|
|
|
13.16 |
|
|
|
16.00 |
|
|
Annualized return on average tangible common equity
(non-GAAP)(1) |
|
(24.89 |
) |
|
|
16.32 |
|
|
|
17.31 |
|
|
|
20.03 |
|
|
|
25.17 |
|
|
Adjusted annualized return on average tangible common equity
(non-GAAP)(1) |
|
16.38 |
|
|
|
17.02 |
|
|
|
17.00 |
|
|
|
21.17 |
|
|
|
26.77 |
|
| Annualized ratio of net
charge-offs (recoveries) to average loans |
|
0.01 |
|
|
|
0.12 |
|
|
|
0.32 |
|
|
|
(0.04 |
) |
|
|
(0.06 |
) |
| Annualized net interest margin
(GAAP) |
|
3.47 |
|
|
|
3.14 |
|
|
|
3.19 |
|
|
|
3.36 |
|
|
|
3.61 |
|
| Annualized net interest
margin, fully tax-equivalent (non-GAAP)(1) |
|
3.52 |
|
|
|
3.18 |
|
|
|
3.23 |
|
|
|
3.40 |
|
|
|
3.65 |
|
| Efficiency ratio (GAAP) |
|
293.86 |
|
|
|
63.77 |
|
|
|
60.93 |
|
|
|
60.94 |
|
|
|
60.05 |
|
| Adjusted efficiency ratio,
fully tax-equivalent (non-GAAP)(1) |
|
59.31 |
|
|
|
59.95 |
|
|
|
59.88 |
|
|
|
57.16 |
|
|
|
54.33 |
|
| Annualized ratio of total
noninterest expenses to average assets (GAAP) |
|
2.63 |
|
|
|
2.18 |
|
|
|
2.17 |
|
|
|
2.24 |
|
|
|
2.34 |
|
| Annualized ratio of core
expenses to average assets (non-GAAP)(1) |
|
2.23 |
|
|
|
2.08 |
|
|
|
2.16 |
|
|
|
2.14 |
|
|
|
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 Ended
December 31, |
|
For the Year Ended
December 31, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Average Balances |
|
|
|
|
|
|
|
|
Assets |
$ |
19,667,825 |
|
|
$ |
19,913,849 |
|
|
$ |
20,053,004 |
|
|
$ |
19,621,839 |
|
| Loans, net of unearned |
|
11,938,272 |
|
|
|
11,117,513 |
|
|
|
11,687,313 |
|
|
|
10,608,831 |
|
| Deposits |
|
16,709,394 |
|
|
|
17,319,218 |
|
|
|
17,351,294 |
|
|
|
17,029,398 |
|
| Earning assets |
|
17,853,957 |
|
|
|
18,175,838 |
|
|
|
18,301,190 |
|
|
|
18,021,134 |
|
| Interest-bearing
liabilities |
|
12,721,680 |
|
|
|
11,980,032 |
|
|
|
12,919,125 |
|
|
|
11,437,921 |
|
| Common equity |
|
1,729,086 |
|
|
|
1,548,739 |
|
|
|
1,714,983 |
|
|
|
1,738,041 |
|
| Total stockholders'
equity |
|
1,839,791 |
|
|
|
1,659,444 |
|
|
|
1,825,688 |
|
|
|
1,848,746 |
|
| Tangible common equity
(non-GAAP)(1) |
|
1,133,888 |
|
|
|
946,688 |
|
|
|
1,117,311 |
|
|
|
1,133,124 |
|
| |
|
|
|
|
|
|
|
| Key Performance
Ratios |
|
|
|
|
|
|
|
| Annualized return on average
assets |
(1.42 |
)% |
|
|
1.21 |
% |
|
|
0.40 |
% |
|
|
1.08 |
% |
| Adjusted annualized return on
average assets (non-GAAP)(1) |
|
0.96 |
|
|
|
1.28 |
|
|
|
1.01 |
|
|
|
1.11 |
|
| Annualized return on average
common equity (GAAP) |
|
(16.61 |
) |
|
|
15.02 |
|
|
|
4.19 |
|
|
|
11.74 |
|
| Adjusted annualized return on
average common equity (non-GAAP)(1) |
|
10.46 |
|
|
|
16.00 |
|
|
|
11.31 |
|
|
|
12.06 |
|
| Annualized return on average
tangible common equity (non-GAAP)(1) |
|
(24.89 |
) |
|
|
25.17 |
|
|
|
6.89 |
|
|
|
18.55 |
|
| Adjusted annualized return on
average tangible common equity (non-GAAP)(1) |
|
16.38 |
|
|
|
26.77 |
|
|
|
17.82 |
|
|
|
19.03 |
|
| Annualized ratio of net
charge-offs (recoveries) to average loans |
|
0.01 |
|
|
|
(0.06 |
) |
|
|
0.11 |
|
|
|
0.11 |
|
| Annualized net interest margin
(GAAP) |
|
3.47 |
|
|
|
3.61 |
|
|
|
3.29 |
|
|
|
3.32 |
|
| Annualized net interest
margin, fully tax-equivalent (non-GAAP)(1) |
|
3.52 |
|
|
|
3.65 |
|
|
|
3.33 |
|
|
|
3.37 |
|
| Efficiency ratio (GAAP) |
|
293.86 |
|
|
|
60.05 |
|
|
|
79.58 |
|
|
|
61.03 |
|
| Adjusted efficiency ratio,
fully tax-equivalent (non-GAAP)(1) |
|
59.31 |
|
|
|
54.33 |
|
|
|
59.06 |
|
|
|
57.74 |
|
| Annualized ratio of total
noninterest expenses to average assets (GAAP) |
|
2.63 |
|
|
|
2.34 |
|
|
|
2.30 |
|
|
|
2.26 |
|
| Annualized ratio of core
expenses to average assets (non-GAAP)(1) |
|
2.23 |
|
|
|
2.14 |
|
|
|
2.15 |
|
|
|
2.16 |
|
| |
|
|
|
|
|
|
|
|
(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 |
|
|
12/31/2023 |
|
9/30/2023 |
|
6/30/2023 |
|
3/31/2023 |
|
12/31/2022 |
|
Common Share Data |
|
|
|
|
|
|
|
|
|
|
Book value per common share |
$ |
42.69 |
|
|
$ |
40.20 |
|
|
$ |
41.00 |
|
|
$ |
40.38 |
|
|
$ |
38.25 |
|
| Tangible book value per common
share (non-GAAP)(1) |
|
28.77 |
|
|
|
26.23 |
|
|
|
26.98 |
|
|
|
26.30 |
|
|
|
24.09 |
|
| ASC 320 effect on book value
per common share |
|
(11.00 |
) |
|
|
(16.27 |
) |
|
|
(14.04 |
) |
|
|
(13.35 |
) |
|
|
(14.58 |
) |
| |
|
|
|
|
|
|
|
|
|
| Common shares outstanding, net
of treasury stock |
|
42,688,008 |
|
|
|
42,656,303 |
|
|
|
42,644,544 |
|
|
|
42,558,726 |
|
|
|
42,467,394 |
|
| |
|
|
|
|
|
|
|
|
|
| Capital
Ratios |
|
|
|
|
|
|
|
|
|
| Common equity ratio |
|
9.27 |
% |
|
|
8.49 |
% |
|
|
8.65 |
% |
|
|
8.54 |
% |
|
|
8.16 |
% |
| Tangible common equity ratio
(non-GAAP)(1) |
|
6.53 |
|
|
|
5.73 |
|
|
|
5.86 |
|
|
|
5.72 |
|
|
|
5.21 |
|
| Tier 1 leverage ratio |
|
9.44 |
|
|
|
9.59 |
|
|
|
9.40 |
|
|
|
9.25 |
|
|
|
9.13 |
|
| Common equity tier 1
ratio(2) |
|
10.97 |
|
|
|
11.37 |
|
|
|
11.33 |
|
|
|
11.28 |
|
|
|
11.07 |
|
| Total risk based capital
ratio(2) |
|
14.53 |
|
|
|
14.90 |
|
|
|
14.93 |
|
|
|
14.98 |
|
|
|
14.76 |
|
| |
|
|
|
|
|
|
|
|
|
| Other Selected Trend
Information |
|
|
|
|
|
|
|
|
|
| Effective tax rate |
|
27.97 |
% |
|
|
21.89 |
% |
|
|
23.74 |
% |
|
|
22.50 |
% |
|
|
18.68 |
% |
| Full time equivalent
employees |
|
1,970 |
|
|
|
1,965 |
|
|
|
1,966 |
|
|
|
1,991 |
|
|
|
2,002 |
|
| |
|
|
|
|
|
|
|
|
|
| Loans Held to
Maturity |
|
|
|
|
|
|
|
|
|
| Commercial and industrial |
$ |
3,652,047 |
|
|
$ |
3,591,809 |
|
|
$ |
3,590,680 |
|
|
$ |
3,498,345 |
|
|
$ |
3,464,414 |
|
| Paycheck Protection Program
("PPP") |
|
2,777 |
|
|
|
3,750 |
|
|
|
4,139 |
|
|
|
8,258 |
|
|
|
11,025 |
|
| Owner occupied commercial real
estate |
|
2,638,175 |
|
|
|
2,429,659 |
|
|
|
2,398,698 |
|
|
|
2,312,538 |
|
|
|
2,265,307 |
|
|
Commercial and business lending |
|
6,292,999 |
|
|
|
6,025,218 |
|
|
|
5,993,517 |
|
|
|
5,819,141 |
|
|
|
5,740,746 |
|
| Non-owner occupied commercial
real estate |
|
2,553,711 |
|
|
|
2,656,358 |
|
|
|
2,530,736 |
|
|
|
2,421,341 |
|
|
|
2,330,940 |
|
| Real estate construction |
|
1,011,716 |
|
|
|
1,029,554 |
|
|
|
1,013,134 |
|
|
|
1,102,186 |
|
|
|
1,076,082 |
|
|
Commercial real estate lending |
|
3,565,427 |
|
|
|
3,685,912 |
|
|
|
3,543,870 |
|
|
|
3,523,527 |
|
|
|
3,407,022 |
|
|
Total commercial lending |
|
9,858,426 |
|
|
|
9,711,130 |
|
|
|
9,537,387 |
|
|
|
9,342,668 |
|
|
|
9,147,768 |
|
| Agricultural and agricultural
real estate |
|
919,184 |
|
|
|
842,116 |
|
|
|
839,817 |
|
|
|
810,183 |
|
|
|
920,510 |
|
| Residential mortgage |
|
797,829 |
|
|
|
813,803 |
|
|
|
828,437 |
|
|
|
841,084 |
|
|
|
853,361 |
|
| Consumer |
|
493,206 |
|
|
|
505,387 |
|
|
|
512,333 |
|
|
|
501,418 |
|
|
|
506,713 |
|
| Total loans held to
maturity |
$ |
12,068,645 |
|
|
$ |
11,872,436 |
|
|
$ |
11,717,974 |
|
|
$ |
11,495,353 |
|
|
$ |
11,428,352 |
|
| |
|
|
|
|
|
|
|
|
|
| Total unfunded loan
commitments |
$ |
4,625,768 |
|
|
$ |
4,813,798 |
|
|
$ |
4,905,147 |
|
|
$ |
4,867,925 |
|
|
$ |
4,729,677 |
|
| |
|
|
|
|
|
|
|
|
|
| Deposits |
|
|
|
|
|
|
|
|
|
| Demand-customer |
$ |
4,500,304 |
|
|
$ |
4,792,813 |
|
|
$ |
4,897,858 |
|
|
$ |
5,119,554 |
|
|
$ |
5,701,340 |
|
| Savings-customer |
|
8,411,240 |
|
|
|
8,190,430 |
|
|
|
8,149,596 |
|
|
|
8,501,337 |
|
|
|
8,670,898 |
|
| Savings-wholesale and
institutional |
|
394,357 |
|
|
|
564,481 |
|
|
|
623,000 |
|
|
|
755,272 |
|
|
|
1,323,493 |
|
| Total savings |
|
8,805,597 |
|
|
|
8,754,911 |
|
|
|
8,772,596 |
|
|
|
9,256,609 |
|
|
|
9,994,391 |
|
| Time-customer |
|
1,944,884 |
|
|
|
1,814,335 |
|
|
|
1,597,849 |
|
|
|
1,071,476 |
|
|
|
851,539 |
|
| Time-wholesale |
|
950,929 |
|
|
|
1,738,934 |
|
|
|
2,395,240 |
|
|
|
2,233,707 |
|
|
|
965,739 |
|
| Total time |
|
2,895,813 |
|
|
|
3,553,269 |
|
|
|
3,993,089 |
|
|
|
3,305,183 |
|
|
|
1,817,278 |
|
| Total
deposits |
$ |
16,201,714 |
|
|
$ |
17,100,993 |
|
|
$ |
17,663,543 |
|
|
$ |
17,681,346 |
|
|
$ |
17,513,009 |
|
| |
|
|
|
|
|
|
|
|
|
| Total customer deposits |
$ |
14,856,428 |
|
|
$ |
14,797,578 |
|
|
$ |
14,645,303 |
|
|
$ |
14,692,367 |
|
|
$ |
15,223,777 |
|
| Total wholesale and
institutional deposits |
|
1,345,286 |
|
|
|
2,303,415 |
|
|
|
3,018,240 |
|
|
|
2,988,979 |
|
|
|
2,289,232 |
|
| Total
deposits |
$ |
16,201,714 |
|
|
$ |
17,100,993 |
|
|
$ |
17,663,543 |
|
|
$ |
17,681,346 |
|
|
$ |
17,513,009 |
|
| |
|
|
|
|
|
|
|
|
|
|
(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) December 31, 2023 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 |
|
|
12/31/2023 |
|
9/30/2023 |
|
6/30/2023 |
|
3/31/2023 |
|
12/31/2022 |
|
Allowance for Credit Losses-Loans |
|
|
|
|
|
|
|
|
|
|
Balance, beginning of period |
$ |
110,208 |
|
|
$ |
111,198 |
|
|
$ |
112,707 |
|
|
$ |
109,483 |
|
|
$ |
105,715 |
|
| Provision (benefit) for credit
losses |
|
12,750 |
|
|
|
2,672 |
|
|
|
7,829 |
|
|
|
2,184 |
|
|
|
2,075 |
|
| Charge-offs |
|
(3,886 |
) |
|
|
(3,964 |
) |
|
|
(9,613 |
) |
|
|
(2,151 |
) |
|
|
(2,668 |
) |
| Recoveries |
|
3,494 |
|
|
|
302 |
|
|
|
275 |
|
|
|
3,191 |
|
|
|
4,361 |
|
| Balance, end of
period |
$ |
122,566 |
|
|
$ |
110,208 |
|
|
$ |
111,198 |
|
|
$ |
112,707 |
|
|
$ |
109,483 |
|
| |
|
|
|
|
|
|
|
|
|
| Allowance for Unfunded
Commitments |
|
|
|
|
|
|
|
|
|
| Balance, beginning of
period |
$ |
17,480 |
|
|
$ |
18,636 |
|
|
$ |
21,086 |
|
|
$ |
20,196 |
|
|
$ |
18,884 |
|
| Provision for credit
losses |
|
(1,012 |
) |
|
|
(1,156 |
) |
|
|
(2,450 |
) |
|
|
890 |
|
|
|
1,312 |
|
| Balance, end of
period |
$ |
16,468 |
|
|
$ |
17,480 |
|
|
$ |
18,636 |
|
|
$ |
21,086 |
|
|
$ |
20,196 |
|
| |
|
|
|
|
|
|
|
|
|
| Allowance for lending
related credit losses |
$ |
139,034 |
|
|
$ |
127,688 |
|
|
$ |
129,834 |
|
|
$ |
133,793 |
|
|
$ |
129,679 |
|
| |
|
|
|
|
|
|
|
|
|
| Provision for Credit
Losses |
|
|
|
|
|
|
|
|
|
| Provision (benefit) for credit
losses-loans |
$ |
12,750 |
|
|
$ |
2,672 |
|
|
$ |
7,829 |
|
|
$ |
2,184 |
|
|
$ |
2,075 |
|
| Provision for credit
losses-unfunded commitments |
|
(1,012 |
) |
|
|
(1,156 |
) |
|
|
(2,450 |
) |
|
|
890 |
|
|
|
1,312 |
|
| Total provision
(benefit) for credit losses |
$ |
11,738 |
|
|
$ |
1,516 |
|
|
$ |
5,379 |
|
|
$ |
3,074 |
|
|
$ |
3,387 |
|
| |
|
|
|
|
|
|
|
|
|
| Asset
Quality |
|
|
|
|
|
|
|
|
|
| Nonaccrual loans |
$ |
95,426 |
|
|
$ |
51,304 |
|
|
$ |
61,956 |
|
|
$ |
58,066 |
|
|
$ |
58,231 |
|
| Loans past due ninety days or
more |
|
2,507 |
|
|
|
511 |
|
|
|
1,459 |
|
|
|
174 |
|
|
|
273 |
|
| Other real estate owned |
|
12,548 |
|
|
|
14,362 |
|
|
|
2,677 |
|
|
|
7,438 |
|
|
|
8,401 |
|
| Other repossessed assets |
|
— |
|
|
|
1 |
|
|
|
5 |
|
|
|
24 |
|
|
|
26 |
|
| Total nonperforming
assets |
$ |
110,481 |
|
|
$ |
66,178 |
|
|
$ |
66,097 |
|
|
$ |
65,702 |
|
|
$ |
66,931 |
|
| |
|
|
|
|
|
|
|
|
|
| Nonperforming Assets
Activity |
|
|
|
|
|
|
|
|
|
| Balance, beginning of
period |
$ |
66,178 |
|
|
$ |
66,097 |
|
|
$ |
65,702 |
|
|
$ |
66,931 |
|
|
$ |
73,268 |
|
| Net loan (charge offs)
recoveries |
|
(392 |
) |
|
|
(3,662 |
) |
|
|
(9,338 |
) |
|
|
1,040 |
|
|
|
1,693 |
|
| New nonperforming loans |
|
61,193 |
|
|
|
19,295 |
|
|
|
19,805 |
|
|
|
4,626 |
|
|
|
1,439 |
|
| Reduction of nonperforming
loans(1) |
|
(14,278 |
) |
|
|
(14,691 |
) |
|
|
(5,253 |
) |
|
|
(5,711 |
) |
|
|
(8,875 |
) |
| OREO/Repossessed assets sales
proceeds |
|
(2,220 |
) |
|
|
(861 |
) |
|
|
(4,819 |
) |
|
|
(1,184 |
) |
|
|
(594 |
) |
| Balance, end of
period |
$ |
110,481 |
|
|
$ |
66,178 |
|
|
$ |
66,097 |
|
|
$ |
65,702 |
|
|
$ |
66,931 |
|
| |
|
|
|
|
|
|
|
|
|
| Asset Quality
Ratios |
|
|
|
|
|
|
|
|
|
| Ratio of nonperforming loans
to total loans |
|
0.81 |
% |
|
|
0.44 |
% |
|
|
0.54 |
% |
|
|
0.51 |
% |
|
|
0.51 |
% |
| Ratio of nonperforming assets
to total assets |
|
0.57 |
|
|
|
0.33 |
|
|
|
0.33 |
|
|
|
0.33 |
|
|
|
0.33 |
|
| Annualized ratio of net loan
charge-offs (recoveries) to average loans |
|
0.01 |
|
|
|
0.12 |
|
|
|
0.32 |
|
|
|
(0.04 |
) |
|
|
(0.06 |
) |
| Allowance for loan credit
losses as a percent of loans |
|
1.02 |
|
|
|
0.93 |
|
|
|
0.95 |
|
|
|
0.98 |
|
|
|
0.96 |
|
| Allowance for lending related
credit losses as a percent of loans |
|
1.15 |
|
|
|
1.08 |
|
|
|
1.11 |
|
|
|
1.16 |
|
|
|
1.13 |
|
| Allowance for loan credit
losses as a percent of nonperforming loans |
|
125.15 |
|
|
|
212.70 |
|
|
|
175.35 |
|
|
|
193.52 |
|
|
|
187.14 |
|
| Loans delinquent 30-89 days as
a percent of total loans |
|
0.09 |
|
|
|
0.12 |
|
|
|
0.12 |
|
|
|
0.10 |
|
|
|
0.04 |
|
| |
|
|
|
|
|
|
|
|
|
| (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 |
| |
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
|
Average
Balance |
|
Interest |
|
Rate |
|
Average
Balance |
|
Interest |
|
Rate |
|
Average
Balance |
|
Interest |
|
Rate |
|
Earning Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
$ |
5,119,970 |
|
|
$ |
54,573 |
|
4.23 |
% |
|
$ |
5,726,057 |
|
|
$ |
54,800 |
|
3.80 |
% |
|
$ |
6,122,313 |
|
|
$ |
53,178 |
|
3.45 |
% |
|
Nontaxable(1) |
|
759,464 |
|
|
|
7,681 |
|
4.01 |
|
|
|
881,162 |
|
|
|
8,085 |
|
3.64 |
|
|
|
890,368 |
|
|
|
7,762 |
|
3.46 |
|
| Total securities |
|
5,879,434 |
|
|
|
62,254 |
|
4.20 |
|
|
|
6,607,219 |
|
|
|
62,885 |
|
3.78 |
|
|
|
7,012,681 |
|
|
|
60,940 |
|
3.45 |
|
| Interest on deposits with
other banks and other short-term investments |
|
146,027 |
|
|
|
2,174 |
|
5.91 |
|
|
|
142,301 |
|
|
|
1,651 |
|
4.60 |
|
|
|
151,405 |
|
|
|
1,410 |
|
3.69 |
|
| Federal funds sold |
|
— |
|
|
|
— |
|
— |
|
|
|
152 |
|
|
|
3 |
|
7.83 |
|
|
|
739 |
|
|
|
11 |
|
5.91 |
|
| Loans:(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial(1) |
|
3,624,034 |
|
|
|
66,980 |
|
7.33 |
|
|
|
3,610,677 |
|
|
|
63,001 |
|
6.92 |
|
|
|
3,346,843 |
|
|
|
45,290 |
|
5.37 |
|
|
PPP loans |
|
3,064 |
|
|
|
8 |
|
1.04 |
|
|
|
3,948 |
|
|
|
11 |
|
1.11 |
|
|
|
12,252 |
|
|
|
397 |
|
12.86 |
|
|
Owner occupied commercial real estate |
|
2,436,234 |
|
|
|
31,714 |
|
5.16 |
|
|
|
2,412,501 |
|
|
|
30,127 |
|
4.95 |
|
|
|
2,277,055 |
|
|
|
26,194 |
|
4.56 |
|
|
Non-owner occupied commercial real estate |
|
2,688,805 |
|
|
|
42,417 |
|
6.26 |
|
|
|
2,586,011 |
|
|
|
38,779 |
|
5.95 |
|
|
|
2,286,298 |
|
|
|
29,273 |
|
5.08 |
|
|
Real estate construction |
|
1,035,010 |
|
|
|
20,200 |
|
7.74 |
|
|
|
1,027,544 |
|
|
|
19,448 |
|
7.51 |
|
|
|
1,050,802 |
|
|
|
16,585 |
|
6.26 |
|
|
Agricultural and agricultural real estate |
|
844,353 |
|
|
|
13,069 |
|
6.14 |
|
|
|
822,957 |
|
|
|
12,582 |
|
6.07 |
|
|
|
785,647 |
|
|
|
10,159 |
|
5.13 |
|
|
Residential mortgage |
|
810,069 |
|
|
|
9,531 |
|
4.67 |
|
|
|
827,402 |
|
|
|
9,482 |
|
4.55 |
|
|
|
858,767 |
|
|
|
9,168 |
|
4.24 |
|
|
Consumer |
|
496,703 |
|
|
|
9,597 |
|
7.67 |
|
|
|
509,024 |
|
|
|
9,615 |
|
7.49 |
|
|
|
499,849 |
|
|
|
7,426 |
|
5.89 |
|
|
Less: allowance for credit losses-loans |
|
(109,776 |
) |
|
|
— |
|
— |
|
|
|
(110,726 |
) |
|
|
— |
|
— |
|
|
|
(106,500 |
) |
|
|
— |
|
— |
|
| Net loans |
|
11,828,496 |
|
|
|
193,516 |
|
6.49 |
|
|
|
11,689,338 |
|
|
|
183,045 |
|
6.21 |
|
|
|
11,011,013 |
|
|
|
144,492 |
|
5.21 |
|
| Total earning
assets |
|
17,853,957 |
|
|
|
257,944 |
|
5.73 |
% |
|
|
18,439,010 |
|
|
|
247,584 |
|
5.33 |
% |
|
|
18,175,838 |
|
|
|
206,853 |
|
4.52 |
% |
| Nonearning Assets |
|
1,813,868 |
|
|
|
|
|
|
|
1,768,910 |
|
|
|
|
|
|
|
1,738,011 |
|
|
|
|
|
| Total
Assets |
$ |
19,667,825 |
|
|
|
|
|
|
$ |
20,207,920 |
|
|
|
|
|
|
$ |
19,913,849 |
|
|
|
|
|
| Interest-bearing
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Savings |
$ |
8,782,197 |
|
|
$ |
53,807 |
|
2.43 |
% |
|
$ |
8,737,581 |
|
|
$ |
49,195 |
|
2.23 |
% |
|
$ |
9,987,692 |
|
|
$ |
25,950 |
|
1.03 |
% |
| Time deposits |
|
3,165,788 |
|
|
|
34,264 |
|
4.29 |
|
|
|
3,945,371 |
|
|
|
43,549 |
|
4.38 |
|
|
|
1,322,094 |
|
|
|
6,265 |
|
1.88 |
|
| Borrowings |
|
401,463 |
|
|
|
5,874 |
|
5.80 |
|
|
|
103,567 |
|
|
|
1,167 |
|
4.47 |
|
|
|
298,804 |
|
|
|
2,223 |
|
2.95 |
|
| Term debt |
|
372,232 |
|
|
|
5,804 |
|
6.19 |
|
|
|
372,112 |
|
|
|
5,765 |
|
6.15 |
|
|
|
371,442 |
|
|
|
5,043 |
|
5.39 |
|
| Total interest-bearing
liabilities |
|
12,721,680 |
|
|
|
99,749 |
|
3.11 |
% |
|
|
13,158,631 |
|
|
|
99,676 |
|
3.01 |
% |
|
|
11,980,032 |
|
|
|
39,481 |
|
1.31 |
% |
| Noninterest-bearing
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Noninterest-bearing
deposits |
|
4,761,409 |
|
|
|
|
|
|
|
4,824,861 |
|
|
|
|
|
|
|
6,009,432 |
|
|
|
|
|
| Accrued interest and other
liabilities |
|
344,945 |
|
|
|
|
|
|
|
366,905 |
|
|
|
|
|
|
|
264,941 |
|
|
|
|
|
| Total
noninterest-bearing liabilities |
|
5,106,354 |
|
|
|
|
|
|
|
5,191,766 |
|
|
|
|
|
|
|
6,274,373 |
|
|
|
|
|
| Equity |
|
1,839,791 |
|
|
|
|
|
|
|
1,857,523 |
|
|
|
|
|
|
|
1,659,444 |
|
|
|
|
|
| Total Liabilities and
Equity |
$ |
19,667,825 |
|
|
|
|
|
|
$ |
20,207,920 |
|
|
|
|
|
|
$ |
19,913,849 |
|
|
|
|
|
| Net interest income,
fully tax-equivalent
(non-GAAP)(1)(3) |
|
|
$ |
158,195 |
|
|
|
|
|
$ |
147,908 |
|
|
|
|
|
$ |
167,372 |
|
|
| Net interest
spread(1) |
|
|
|
|
2.62 |
% |
|
|
|
|
|
2.32 |
% |
|
|
|
|
|
3.21 |
% |
| Net interest income,
fully tax-equivalent (non-GAAP) to total earning
assets(1)(3) |
|
|
|
|
3.52 |
% |
|
|
|
|
|
3.18 |
% |
|
|
|
|
|
3.65 |
% |
| Interest-bearing liabilities
to earning assets |
|
71.25 |
% |
|
|
|
|
|
|
71.36 |
% |
|
|
|
|
|
|
65.91 |
% |
|
|
|
|
| |
| (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 Year Ended |
| |
December 31, 2023 |
|
December 31, 2022 |
|
|
Average
Balance |
|
Interest |
|
Rate |
|
Average
Balance |
|
Interest |
|
Rate |
|
Earning Assets |
|
|
|
|
|
|
|
|
|
|
|
| Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
$ |
5,723,603 |
|
|
$ |
223,521 |
|
3.91 |
% |
|
$ |
6,335,586 |
|
|
$ |
169,544 |
|
2.68 |
% |
|
Nontaxable(1) |
|
864,288 |
|
|
|
31,292 |
|
3.62 |
|
|
|
965,474 |
|
|
|
30,387 |
|
3.15 |
|
| Total securities |
|
6,587,891 |
|
|
|
254,813 |
|
3.87 |
|
|
|
7,301,060 |
|
|
|
199,931 |
|
2.74 |
|
| Interest-bearing deposits with
other banks and other short-term investments |
|
136,964 |
|
|
|
7,007 |
|
5.12 |
|
|
|
216,786 |
|
|
|
3,125 |
|
1.44 |
|
| Federal funds sold |
|
38 |
|
|
|
3 |
|
7.89 |
|
|
|
192 |
|
|
|
11 |
|
5.73 |
|
| Loans:(2) |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial(1) |
|
3,566,610 |
|
|
|
236,532 |
|
6.63 |
|
|
|
3,070,890 |
|
|
|
140,310 |
|
4.57 |
|
|
PPP loans |
|
5,797 |
|
|
|
69 |
|
1.19 |
|
|
|
50,464 |
|
|
|
6,884 |
|
13.64 |
|
|
Owner occupied commercial real estate |
|
2,375,883 |
|
|
|
116,641 |
|
4.91 |
|
|
|
2,272,088 |
|
|
|
93,936 |
|
4.13 |
|
|
Non-owner occupied commercial real estate |
|
2,517,645 |
|
|
|
147,528 |
|
5.86 |
|
|
|
2,196,922 |
|
|
|
99,202 |
|
4.52 |
|
|
Real estate construction |
|
1,047,192 |
|
|
|
76,307 |
|
7.29 |
|
|
|
923,316 |
|
|
|
48,258 |
|
5.23 |
|
|
Agricultural and agricultural real estate |
|
837,861 |
|
|
|
49,260 |
|
5.88 |
|
|
|
778,526 |
|
|
|
34,064 |
|
4.38 |
|
|
Residential mortgage |
|
832,562 |
|
|
|
37,669 |
|
4.52 |
|
|
|
852,541 |
|
|
|
34,276 |
|
4.02 |
|
|
Consumer |
|
503,763 |
|
|
|
36,522 |
|
7.25 |
|
|
|
464,084 |
|
|
|
23,058 |
|
4.97 |
|
| Less: allowance for credit
losses-loans |
|
(111,016 |
) |
|
|
— |
|
— |
|
|
|
(105,735 |
) |
|
|
— |
|
— |
|
| Net loans |
|
11,576,297 |
|
|
|
700,528 |
|
6.05 |
|
|
|
10,503,096 |
|
|
|
479,988 |
|
4.57 |
|
| Total earning
assets |
|
18,301,190 |
|
|
|
962,351 |
|
5.26 |
% |
|
|
18,021,134 |
|
|
|
683,055 |
|
3.79 |
% |
| Nonearning Assets |
|
1,751,814 |
|
|
|
|
|
|
|
1,600,705 |
|
|
|
|
|
| Total
Assets |
$ |
20,053,004 |
|
|
|
|
|
|
$ |
19,621,839 |
|
|
|
|
|
| Interest-bearing
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
| Savings |
$ |
9,043,067 |
|
|
$ |
182,179 |
|
2.01 |
% |
|
$ |
9,737,100 |
|
|
$ |
46,623 |
|
0.48 |
% |
| Time deposits |
|
3,299,405 |
|
|
|
137,509 |
|
4.17 |
|
|
|
1,160,538 |
|
|
|
10,257 |
|
0.88 |
|
| Borrowings |
|
204,524 |
|
|
|
10,311 |
|
5.04 |
|
|
|
168,404 |
|
|
|
2,717 |
|
1.61 |
|
| Term debt |
|
372,129 |
|
|
|
22,560 |
|
6.06 |
|
|
|
371,879 |
|
|
|
16,823 |
|
4.52 |
|
| Total interest-bearing
liabilities |
|
12,919,125 |
|
|
|
352,559 |
|
2.73 |
% |
|
|
11,437,921 |
|
|
|
76,420 |
|
0.67 |
% |
| Noninterest-bearing
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
| Noninterest-bearing
deposits |
|
5,008,822 |
|
|
|
|
|
|
|
6,131,760 |
|
|
|
|
|
| Accrued interest and other
liabilities |
|
299,369 |
|
|
|
|
|
|
|
203,412 |
|
|
|
|
|
| Total noninterest-bearing
liabilities |
|
5,308,191 |
|
|
|
|
|
|
|
6,335,172 |
|
|
|
|
|
| Equity |
|
1,825,688 |
|
|
|
|
|
|
|
1,848,746 |
|
|
|
|
|
| Total Liabilities and
Equity |
$ |
20,053,004 |
|
|
|
|
|
|
$ |
19,621,839 |
|
|
|
|
|
| Net interest income,
fully tax-equivalent
(non-GAAP)(1)(3) |
|
|
$ |
609,792 |
|
|
|
|
|
$ |
606,635 |
|
|
| Net interest
spread(1) |
|
|
|
|
2.53 |
% |
|
|
|
|
|
3.12 |
% |
| Net interest income,
fully tax-equivalent (non-GAAP) to total earning
assets(1)(3) |
|
|
|
|
3.33 |
% |
|
|
|
|
|
3.37 |
% |
| Interest-bearing liabilities
to earning assets |
|
70.59 |
% |
|
|
|
|
|
|
63.47 |
% |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| (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 |
| |
For the Quarter Ended |
|
|
12/31/2023 |
|
9/30/2023 |
|
6/30/2023 |
|
3/31/2023 |
|
12/31/2022 |
|
Reconciliation of Annualized Return on Average Tangible
Common Equity (non-GAAP) |
|
|
|
|
|
|
|
|
|
|
Earnings available to common stockholders (GAAP) |
$ |
(72,375 |
) |
|
$ |
46,078 |
|
|
$ |
47,404 |
|
|
$ |
50,763 |
|
|
$ |
58,642 |
|
|
Plus core deposit and customer relationship intangibles
amortization, net of tax(2) |
|
1,229 |
|
|
|
1,240 |
|
|
|
1,309 |
|
|
|
1,364 |
|
|
|
1,410 |
|
| Earnings available to
common stockholders excluding intangible amortization
(non-GAAP) |
$ |
(71,146 |
) |
|
$ |
47,318 |
|
|
$ |
48,713 |
|
|
$ |
52,127 |
|
|
$ |
60,052 |
|
| |
|
|
|
|
|
|
|
|
|
| Average common equity
(GAAP) |
$ |
1,729,086 |
|
|
$ |
1,746,818 |
|
|
$ |
1,727,013 |
|
|
$ |
1,655,860 |
|
|
$ |
1,548,739 |
|
|
Less average goodwill |
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
Less average core deposit and customer relationship intangibles,
net |
|
19,193 |
|
|
|
20,821 |
|
|
|
22,481 |
|
|
|
24,238 |
|
|
|
26,046 |
|
| Average tangible
common equity (non-GAAP) |
$ |
1,133,888 |
|
|
$ |
1,149,992 |
|
|
$ |
1,128,527 |
|
|
$ |
1,055,617 |
|
|
$ |
946,688 |
|
| Annualized return on average
common equity (GAAP) |
(16.61 |
)% |
|
|
10.47 |
% |
|
|
11.01 |
% |
|
|
12.43 |
% |
|
|
15.02 |
% |
| Annualized return on average
tangible common equity (non-GAAP) |
(24.89 |
)% |
|
|
16.32 |
% |
|
|
17.31 |
% |
|
|
20.03 |
% |
|
|
25.17 |
% |
| |
|
|
|
|
|
|
|
|
|
| Reconciliation of
Annualized Net Interest Margin, Fully Tax-Equivalent
(non-GAAP) |
|
|
|
|
|
|
|
|
|
| Net Interest Income
(GAAP) |
$ |
156,137 |
|
|
$ |
145,756 |
|
|
$ |
147,132 |
|
|
$ |
152,212 |
|
|
$ |
165,220 |
|
|
Plus tax-equivalent adjustment(1) |
|
2,058 |
|
|
|
2,152 |
|
|
|
2,136 |
|
|
|
2,209 |
|
|
|
2,152 |
|
| Net interest income,
fully tax-equivalent (non-GAAP) |
$ |
158,195 |
|
|
$ |
147,908 |
|
|
$ |
149,268 |
|
|
$ |
154,421 |
|
|
$ |
167,372 |
|
| |
|
|
|
|
|
|
|
|
|
| Average earning assets |
$ |
17,853,957 |
|
|
$ |
18,439,010 |
|
|
$ |
18,523,552 |
|
|
$ |
18,392,649 |
|
|
$ |
18,175,838 |
|
| |
|
|
|
|
|
|
|
|
|
| Annualized net interest margin
(GAAP) |
|
3.47 |
% |
|
|
3.14 |
% |
|
|
3.19 |
% |
|
|
3.36 |
% |
|
|
3.61 |
% |
| Annualized net interest
margin, fully tax-equivalent (non-GAAP) |
|
3.52 |
|
|
|
3.18 |
|
|
|
3.23 |
|
|
|
3.40 |
|
|
|
3.65 |
|
| Net purchase accounting
discount amortization on loans included in annualized net interest
margin |
|
0.02 |
|
|
|
0.01 |
|
|
|
0.03 |
|
|
|
0.02 |
|
|
|
0.03 |
|
| |
|
|
|
|
|
|
|
|
|
| Reconciliation of
Tangible Book Value Per Common Share (non-GAAP) |
|
|
|
|
|
|
|
|
|
| Common equity (GAAP) |
$ |
1,822,412 |
|
|
$ |
1,714,825 |
|
|
$ |
1,748,285 |
|
|
$ |
1,718,700 |
|
|
$ |
1,624,350 |
|
|
Less goodwill |
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
Less core deposit and customer relationship intangibles, net |
|
18,415 |
|
|
|
20,026 |
|
|
|
21,651 |
|
|
|
23,366 |
|
|
|
25,154 |
|
| Tangible common equity
(non-GAAP) |
$ |
1,227,992 |
|
|
$ |
1,118,794 |
|
|
$ |
1,150,629 |
|
|
$ |
1,119,329 |
|
|
$ |
1,023,191 |
|
| |
|
|
|
|
|
|
|
|
|
| Common shares outstanding, net
of treasury stock |
|
42,688,008 |
|
|
|
42,656,303 |
|
|
|
42,644,544 |
|
|
|
42,558,726 |
|
|
|
42,467,394 |
|
| Common equity (book value) per
share (GAAP) |
$ |
42.69 |
|
|
$ |
40.20 |
|
|
$ |
41.00 |
|
|
$ |
40.38 |
|
|
$ |
38.25 |
|
| Tangible book value per common
share (non-GAAP) |
$ |
28.77 |
|
|
$ |
26.23 |
|
|
$ |
26.98 |
|
|
$ |
26.30 |
|
|
$ |
24.09 |
|
| |
|
|
|
|
|
|
|
|
|
| Reconciliation of
Tangible Common Equity Ratio (non-GAAP) |
|
|
|
|
|
|
|
|
|
| Tangible common equity
(non-GAAP) |
$ |
1,227,992 |
|
|
$ |
1,118,794 |
|
|
$ |
1,150,629 |
|
|
$ |
1,119,329 |
|
|
$ |
1,023,191 |
|
| |
|
|
|
|
|
|
|
|
|
| Total assets (GAAP) |
$ |
19,411,707 |
|
|
$ |
20,129,793 |
|
|
$ |
20,224,716 |
|
|
$ |
20,182,544 |
|
|
$ |
20,244,228 |
|
|
Less goodwill |
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
Less core deposit and customer relationship intangibles, net |
|
18,415 |
|
|
|
20,026 |
|
|
|
21,651 |
|
|
|
23,366 |
|
|
|
25,154 |
|
| Total tangible assets
(non-GAAP) |
$ |
18,817,287 |
|
|
$ |
19,533,762 |
|
|
$ |
19,627,060 |
|
|
$ |
19,583,173 |
|
|
$ |
19,643,069 |
|
| Tangible common equity ratio
(non-GAAP) |
|
6.53 |
% |
|
|
5.73 |
% |
|
|
5.86 |
% |
|
|
5.72 |
% |
|
|
5.21 |
% |
| |
|
|
|
|
|
|
|
|
|
| (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 |
|
12/31/2023 |
|
9/30/2023 |
|
6/30/2023 |
|
3/31/2023 |
|
12/31/2022 |
|
Reconciliation of Adjusted Efficiency Ratio, fully
tax-equivalent (non-GAAP) |
|
|
Net interest income (GAAP) |
$ |
156,137 |
|
|
$ |
145,756 |
|
|
$ |
147,132 |
|
|
$ |
152,212 |
|
|
$ |
165,220 |
|
| Tax-equivalent
adjustment(1) |
|
2,058 |
|
|
|
2,152 |
|
|
|
2,136 |
|
|
|
2,209 |
|
|
|
2,152 |
|
| Fully tax-equivalent net
interest income |
|
158,195 |
|
|
|
147,908 |
|
|
|
149,268 |
|
|
|
154,421 |
|
|
|
167,372 |
|
| Noninterest income |
|
(111,801 |
) |
|
|
28,383 |
|
|
|
32,493 |
|
|
|
29,999 |
|
|
|
29,975 |
|
| Securities (gains)/losses,
net |
|
140,007 |
|
|
|
114 |
|
|
|
314 |
|
|
|
1,104 |
|
|
|
153 |
|
| Unrealized (gain) loss on
equity securities, net |
|
(75 |
) |
|
|
(13 |
) |
|
|
41 |
|
|
|
(193 |
) |
|
|
7 |
|
| Valuation adjustment on
servicing rights |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Adjusted revenue
(non-GAAP) |
$ |
186,326 |
|
|
$ |
176,392 |
|
|
$ |
182,116 |
|
|
$ |
185,331 |
|
|
$ |
197,507 |
|
| |
|
|
|
|
|
|
|
|
|
| Total noninterest expenses
(GAAP) |
$ |
130,285 |
|
|
$ |
111,053 |
|
|
$ |
109,446 |
|
|
$ |
111,043 |
|
|
$ |
117,218 |
|
| Less: |
|
|
|
|
|
|
|
|
|
|
Core deposit and customer relationship intangibles
amortization |
|
1,611 |
|
|
|
1,625 |
|
|
|
1,715 |
|
|
|
1,788 |
|
|
|
1,841 |
|
|
Partnership investment in tax credit projects |
|
3,573 |
|
|
|
1,136 |
|
|
|
154 |
|
|
|
538 |
|
|
|
3,247 |
|
|
(Gain) loss on sales/valuation of assets, net |
|
2,072 |
|
|
|
108 |
|
|
|
(3,372 |
) |
|
|
1,115 |
|
|
|
2,388 |
|
|
Acquisition, integration and restructuring costs |
|
4,365 |
|
|
|
2,429 |
|
|
|
1,892 |
|
|
|
1,673 |
|
|
|
2,442 |
|
|
FDIC special assessment |
|
8,145 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Core expenses
(non-GAAP) |
$ |
110,519 |
|
|
$ |
105,755 |
|
|
$ |
109,057 |
|
|
$ |
105,929 |
|
|
$ |
107,300 |
|
| |
|
|
|
|
|
|
|
|
|
| Efficiency ratio (GAAP) |
|
293.86 |
% |
|
|
63.77 |
% |
|
|
60.93 |
% |
|
|
60.94 |
% |
|
|
60.05 |
% |
| Adjusted efficiency ratio,
fully tax-equivalent (non-GAAP) |
|
59.31 |
% |
|
|
59.95 |
% |
|
|
59.88 |
% |
|
|
57.16 |
% |
|
|
54.33 |
% |
| |
|
|
|
|
|
|
|
|
|
| Reconciliation of
Annualized Ratio of Core Expenses to Average Assets
(non-GAAP) |
|
|
|
|
|
|
|
|
|
| Total noninterest expenses
(GAAP) |
$ |
130,285 |
|
|
$ |
111,053 |
|
|
$ |
109,446 |
|
|
$ |
111,043 |
|
|
$ |
117,218 |
|
| Core expenses (non-GAAP) |
|
110,519 |
|
|
|
105,755 |
|
|
|
109,057 |
|
|
|
105,929 |
|
|
|
107,300 |
|
| |
|
|
|
|
|
|
|
|
|
| Average assets |
$ |
19,667,825 |
|
|
$ |
20,207,920 |
|
|
$ |
20,221,511 |
|
|
$ |
20,118,005 |
|
|
$ |
19,913,849 |
|
| Total noninterest expenses to
average assets (GAAP) |
|
2.63 |
% |
|
|
2.18 |
% |
|
|
2.17 |
% |
|
|
2.24 |
% |
|
|
2.34 |
% |
| Core expenses to average
assets (non-GAAP) |
|
2.23 |
% |
|
|
2.08 |
% |
|
|
2.16 |
% |
|
|
2.14 |
% |
|
|
2.14 |
% |
| |
|
|
|
|
|
|
|
|
|
| Acquisition,
integration and restructuring costs |
|
|
|
|
|
|
|
|
|
| Salaries and employee
benefits |
$ |
1,425 |
|
|
$ |
94 |
|
|
$ |
93 |
|
|
$ |
74 |
|
|
$ |
424 |
|
| Occupancy |
|
1,092 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Furniture and equipment |
|
19 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Professional fees |
|
793 |
|
|
|
1,617 |
|
|
|
1,068 |
|
|
|
934 |
|
|
|
1,587 |
|
| Advertising |
|
28 |
|
|
|
178 |
|
|
|
222 |
|
|
|
122 |
|
|
|
95 |
|
| Other noninterest
expenses |
|
1,008 |
|
|
|
540 |
|
|
|
509 |
|
|
|
543 |
|
|
|
336 |
|
| Total acquisition,
integration and restructuring costs |
$ |
4,365 |
|
|
$ |
2,429 |
|
|
$ |
1,892 |
|
|
$ |
1,673 |
|
|
$ |
2,442 |
|
| |
|
|
|
|
|
|
|
|
|
| (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 |
|
|
12/31/2023 |
|
9/30/2023 |
|
6/30/2023 |
|
3/31/2023 |
|
12/31/2022 |
|
Reconciliation of Adjusted Earnings |
|
|
|
|
|
|
|
|
|
| Net income/(loss) |
$ |
(70,363 |
) |
|
$ |
48,091 |
|
|
$ |
49,416 |
|
|
$ |
52,776 |
|
|
$ |
60,654 |
|
| Loss from sale of
securities |
|
140,007 |
|
|
|
114 |
|
|
|
314 |
|
|
|
1,104 |
|
|
|
153 |
|
| (Gain) loss on sales/valuation
of assets, net |
|
2,072 |
|
|
|
108 |
|
|
|
(3,372 |
) |
|
|
1,115 |
|
|
|
2,388 |
|
| Acquisition, integration and
restructuring costs |
|
4,365 |
|
|
|
2,429 |
|
|
|
1,892 |
|
|
|
1,673 |
|
|
|
2,442 |
|
| FDIC special assessment |
|
8,145 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Total
adjustments |
|
154,589 |
|
|
|
2,651 |
|
|
|
(1,166 |
) |
|
|
3,892 |
|
|
|
4,983 |
|
| Tax effect of
adjustments(2) |
|
(36,638 |
) |
|
|
(628 |
) |
|
|
276 |
|
|
|
(922 |
) |
|
|
(1,166 |
) |
| Adjusted
earnings |
$ |
47,588 |
|
|
$ |
50,114 |
|
|
$ |
48,526 |
|
|
$ |
55,746 |
|
|
$ |
64,471 |
|
| |
|
|
|
|
|
|
|
|
|
| Preferred dividends |
|
(2,012 |
) |
|
|
(2,013 |
) |
|
|
(2,012 |
) |
|
|
(2,013 |
) |
|
|
(2,012 |
) |
| Adjusted earnings
available to common stockholders |
$ |
45,576 |
|
|
$ |
48,101 |
|
|
$ |
46,514 |
|
|
$ |
53,733 |
|
|
$ |
62,459 |
|
| |
|
|
|
|
|
|
|
|
|
| Plus core deposit and customer
relationship intangibles amortization, net of
tax(2) |
|
1,229 |
|
|
|
1,240 |
|
|
|
1,309 |
|
|
|
1,364 |
|
|
|
1,410 |
|
| Earnings available to
common stockholders excluding intangible amortization
(non-GAAP) |
$ |
46,805 |
|
|
$ |
49,341 |
|
|
$ |
47,823 |
|
|
$ |
55,097 |
|
|
$ |
63,869 |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Reconciliation of
Adjusted Annualized Return on Average Assets |
|
| Average assets |
$ |
19,667,825 |
|
|
$ |
20,207,920 |
|
|
$ |
20,221,511 |
|
|
$ |
20,118,005 |
|
|
$ |
19,913,849 |
|
| Adjusted annualized return on
average assets (non-GAAP) |
|
0.96 |
% |
|
|
0.98 |
% |
|
|
0.96 |
% |
|
|
1.12 |
% |
|
|
1.28 |
% |
| |
|
|
|
|
|
|
|
|
|
| Reconciliation of
Adjusted Annualized Return on Average Common
Equity |
|
|
|
|
|
|
|
|
|
| Average common stockholders'
equity (GAAP) |
$ |
1,729,086 |
|
|
$ |
1,746,818 |
|
|
$ |
1,727,013 |
|
|
$ |
1,655,860 |
|
|
$ |
1,548,739 |
|
| Adjusted annualized average
common equity (non-GAAP) |
|
10.46 |
% |
|
|
10.92 |
% |
|
|
10.80 |
% |
|
|
13.16 |
% |
|
|
16.00 |
% |
| |
|
|
|
|
|
|
|
|
|
| Reconciliation of
Adjusted Annualized Return on Average Tangible Common
Equity |
|
|
|
|
|
|
|
|
|
| Average tangible common equity
(non-GAAP) |
$ |
1,133,888 |
|
|
$ |
1,149,992 |
|
|
$ |
1,128,527 |
|
|
$ |
1,055,617 |
|
|
$ |
946,688 |
|
| Adjusted annualized average
tangible common equity (non-GAAP) |
|
16.38 |
% |
|
|
17.02 |
% |
|
|
17.00 |
% |
|
|
21.17 |
% |
|
|
26.77 |
% |
| |
|
|
|
|
|
|
|
|
|
| Reconciliation of
Adjusted Diluted Earnings Per Common Share |
|
|
|
|
|
|
|
|
|
| Weighted average shares
outstanding-diluted |
|
42,838,405 |
|
|
|
42,812,563 |
|
|
|
42,757,603 |
|
|
|
42,742,878 |
|
|
|
42,699,752 |
|
| Adjusted diluted earnings per
common share |
$ |
1.06 |
|
|
$ |
1.12 |
|
|
$ |
1.09 |
|
|
$ |
1.26 |
|
|
$ |
1.46 |
|
| |
|
|
|
|
|
|
|
|
|
| (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
December 31, |
|
For the Year Ended
December 31, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Reconciliation of Annualized Return on Average Tangible
Common Equity (non-GAAP) |
|
|
|
|
|
|
|
|
Earnings available to common stockholders (GAAP) |
$ |
(72,375 |
) |
|
$ |
58,642 |
|
|
$ |
71,870 |
|
|
$ |
204,130 |
|
|
Plus core deposit and customer relationship intangibles
amortization, net of tax(2) |
|
1,229 |
|
|
|
1,410 |
|
|
|
5,142 |
|
|
|
6,071 |
|
| Earnings available to
common stockholders excluding intangible amortization
(non-GAAP) |
$ |
(71,146 |
) |
|
$ |
60,052 |
|
|
$ |
77,012 |
|
|
$ |
210,201 |
|
| |
|
|
|
|
|
|
|
| Average common equity
(GAAP) |
$ |
1,729,086 |
|
|
$ |
1,548,739 |
|
|
$ |
1,714,983 |
|
|
$ |
1,738,041 |
|
|
Less average goodwill |
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
|
576,005 |
|
|
Less average core deposit and customer relationship intangibles,
net |
|
19,193 |
|
|
|
26,046 |
|
|
|
21,667 |
|
|
|
28,912 |
|
| Average tangible
common equity (non-GAAP) |
$ |
1,133,888 |
|
|
$ |
946,688 |
|
|
$ |
1,117,311 |
|
|
$ |
1,133,124 |
|
| Annualized return on average
common equity (GAAP) |
(16.61 |
)% |
|
|
15.02 |
% |
|
|
4.19 |
% |
|
|
11.74 |
% |
| Annualized return on average
tangible common equity (non-GAAP) |
(24.89 |
)% |
|
|
25.17 |
% |
|
|
6.89 |
% |
|
|
18.55 |
% |
| |
|
|
|
|
|
|
|
| Reconciliation of
Annualized Net Interest Margin, Fully Tax-Equivalent
(non-GAAP) |
|
|
|
|
|
|
|
| Net Interest Income
(GAAP) |
$ |
156,137 |
|
|
$ |
165,220 |
|
|
$ |
601,237 |
|
|
$ |
598,236 |
|
|
Plus tax-equivalent adjustment(1) |
|
2,058 |
|
|
|
2,152 |
|
|
|
8,555 |
|
|
|
8,399 |
|
| Net interest income,
fully tax-equivalent (non-GAAP) |
$ |
158,195 |
|
|
$ |
167,372 |
|
|
$ |
609,792 |
|
|
$ |
606,635 |
|
| |
|
|
|
|
|
|
|
| Average earning assets |
$ |
17,853,957 |
|
|
$ |
18,175,838 |
|
|
$ |
18,301,190 |
|
|
$ |
18,021,134 |
|
| |
|
|
|
|
|
|
|
| Annualized net interest margin
(GAAP) |
|
3.47 |
% |
|
|
3.61 |
% |
|
|
3.29 |
% |
|
|
3.32 |
% |
| Annualized net interest
margin, fully tax-equivalent (non-GAAP) |
|
3.52 |
|
|
|
3.65 |
|
|
|
3.33 |
|
|
|
3.37 |
|
| Net purchase accounting
discount amortization on loans included in annualized net interest
margin |
|
0.02 |
|
|
|
0.03 |
|
|
|
0.02 |
|
|
|
0.04 |
|
| |
|
|
|
|
|
|
|
| (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
December 31, |
|
For the Year Ended
December 31, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Reconciliation of Efficiency Ratio
(non-GAAP) |
|
|
|
|
|
|
|
|
Net interest income (GAAP) |
$ |
156,137 |
|
|
$ |
165,220 |
|
|
$ |
601,237 |
|
|
$ |
598,236 |
|
| Tax-equivalent
adjustment(1) |
|
2,058 |
|
|
|
2,152 |
|
|
|
8,555 |
|
|
|
8,399 |
|
| Fully tax-equivalent net
interest income |
|
158,195 |
|
|
|
167,372 |
|
|
|
609,792 |
|
|
|
606,635 |
|
| Noninterest income |
|
(111,801 |
) |
|
|
29,975 |
|
|
|
(20,926 |
) |
|
|
128,264 |
|
| Securities (gains)/losses,
net |
|
140,007 |
|
|
|
153 |
|
|
|
141,539 |
|
|
|
425 |
|
| Unrealized (gain) loss on
equity securities, net |
|
(75 |
) |
|
|
7 |
|
|
|
(240 |
) |
|
|
622 |
|
| Valuation adjustment on
servicing rights |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,658 |
) |
| Adjusted revenue
(non-GAAP) |
$ |
186,326 |
|
|
$ |
197,507 |
|
|
$ |
730,165 |
|
|
$ |
734,288 |
|
| |
|
|
|
|
|
|
|
| Total noninterest expenses
(GAAP) |
$ |
130,285 |
|
|
$ |
117,218 |
|
|
$ |
461,827 |
|
|
$ |
443,377 |
|
| Less: |
|
|
|
|
|
|
|
|
Core deposit and customer relationship intangibles
amortization |
|
1,611 |
|
|
|
1,841 |
|
|
|
6,739 |
|
|
|
7,834 |
|
|
Partnership investment in tax credit projects |
|
3,573 |
|
|
|
3,247 |
|
|
|
5,401 |
|
|
|
5,040 |
|
|
(Gain) loss on sales/valuations of assets, net |
|
2,072 |
|
|
|
2,388 |
|
|
|
(77 |
) |
|
|
(1,047 |
) |
|
Acquisition, integration and restructuring costs |
|
4,365 |
|
|
|
2,442 |
|
|
|
10,359 |
|
|
|
7,586 |
|
|
FDIC special assessment |
|
8,145 |
|
|
|
— |
|
|
|
8,145 |
|
|
|
— |
|
| Core expenses
(non-GAAP) |
$ |
110,519 |
|
|
$ |
107,300 |
|
|
$ |
431,260 |
|
|
$ |
423,964 |
|
| Efficiency ratio (GAAP) |
|
293.86 |
% |
|
|
60.05 |
% |
|
|
79.58 |
% |
|
|
61.03 |
% |
| Adjusted efficiency ratio,
fully tax-equivalent (non-GAAP) |
|
59.31 |
% |
|
|
54.33 |
% |
|
|
59.06 |
% |
|
|
57.74 |
% |
| |
|
|
|
|
|
|
|
| Reconciliation of
Annualized Ratio of Core Expenses to Average Assets
(non-GAAP) |
|
|
|
|
|
|
|
| Total noninterest expenses
(GAAP) |
$ |
130,285 |
|
|
$ |
117,218 |
|
|
$ |
461,827 |
|
|
$ |
443,377 |
|
| Core expenses (non-GAAP) |
|
110,519 |
|
|
|
107,300 |
|
|
|
431,260 |
|
|
|
423,964 |
|
| |
|
|
|
|
|
|
|
| Average assets |
$ |
19,667,825 |
|
|
$ |
19,913,849 |
|
|
$ |
20,053,004 |
|
|
$ |
19,621,839 |
|
| Total noninterest expenses to
average assets (GAAP) |
|
2.63 |
% |
|
|
2.34 |
% |
|
|
2.30 |
% |
|
|
2.26 |
% |
| Core expenses to average
assets (non-GAAP) |
|
2.23 |
% |
|
|
2.14 |
% |
|
|
2.15 |
% |
|
|
2.16 |
% |
| |
|
|
|
|
|
|
|
| Acquisition,
integration and restructuring costs |
|
|
|
|
|
|
|
| Salaries and employee
benefits |
$ |
1,425 |
|
|
$ |
424 |
|
|
$ |
1,686 |
|
|
$ |
1,404 |
|
| Occupancy |
|
1,092 |
|
|
|
— |
|
|
|
1,092 |
|
|
|
— |
|
| Furniture and equipment |
|
19 |
|
|
|
— |
|
|
|
19 |
|
|
|
— |
|
| Professional fees |
|
793 |
|
|
|
1,587 |
|
|
|
4,412 |
|
|
|
5,082 |
|
| Advertising |
|
28 |
|
|
|
95 |
|
|
|
550 |
|
|
|
382 |
|
| Other noninterest
expenses |
|
1,008 |
|
|
|
336 |
|
|
|
2,600 |
|
|
|
718 |
|
| Total acquisition,
integration and restructuring costs |
$ |
4,365 |
|
|
$ |
2,442 |
|
|
$ |
10,359 |
|
|
$ |
7,586 |
|
| |
|
|
|
|
|
|
|
| (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
December 31, |
|
For the Year Ended
December 31, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Reconciliation of Adjusted Earnings
(non-GAAP) |
|
|
|
|
|
|
|
| Net income/(loss) |
$ |
(70,363 |
) |
|
$ |
60,654 |
|
|
$ |
79,920 |
|
|
$ |
212,180 |
|
| Loss from sale of
securities |
|
140,007 |
|
|
|
153 |
|
|
|
141,539 |
|
|
|
425 |
|
| (Gain) loss on sales/valuation
of assets, net |
|
2,072 |
|
|
|
2,388 |
|
|
|
(77 |
) |
|
|
(1,047 |
) |
| Acquisition, integration and
restructuring costs |
|
4,365 |
|
|
|
2,442 |
|
|
|
10,359 |
|
|
|
7,586 |
|
| FDIC special assessment |
|
8,145 |
|
|
|
— |
|
|
|
8,145 |
|
|
|
— |
|
| Total
adjustments |
|
154,589 |
|
|
|
4,983 |
|
|
|
159,966 |
|
|
|
6,964 |
|
| Tax effect of
adjustments(2) |
|
(36,638 |
) |
|
|
(1,166 |
) |
|
|
(37,912 |
) |
|
|
(1,567 |
) |
| Adjusted
earnings |
$ |
47,588 |
|
|
$ |
64,471 |
|
|
$ |
201,974 |
|
|
$ |
217,577 |
|
| |
|
|
|
|
|
|
|
| Preferred dividends |
|
(2,012 |
) |
|
|
(2,012 |
) |
|
|
(8,050 |
) |
|
|
(8,050 |
) |
| Adjusted earnings
available to common stockholders |
$ |
45,576 |
|
|
$ |
62,459 |
|
|
$ |
193,924 |
|
|
$ |
209,527 |
|
| |
|
|
|
|
|
|
|
| Plus core deposit and customer
relationship intangibles amortization, net of
tax(2) |
|
1,229 |
|
|
|
1,410 |
|
|
|
5,142 |
|
|
|
6,071 |
|
| Earnings available to
common stockholders excluding intangible amortization
(non-GAAP) |
$ |
46,805 |
|
|
$ |
63,869 |
|
|
$ |
199,066 |
|
|
$ |
215,598 |
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| Reconciliation of
Adjusted Annualized Return on Average Assets |
|
|
|
|
|
|
|
| Average assets |
$ |
19,667,825 |
|
|
$ |
19,913,849 |
|
|
$ |
20,053,004 |
|
|
$ |
19,621,839 |
|
| Adjusted annualized return on
average assets (non-GAAP) |
|
0.96 |
% |
|
|
1.28 |
% |
|
|
1.01 |
% |
|
|
1.11 |
% |
| |
|
|
|
|
|
|
|
| Reconciliation of
Adjusted Annualized Return on Average Common
Equity |
|
|
|
|
|
|
|
| Average common stockholders'
equity (GAAP) |
$ |
1,729,086 |
|
|
$ |
1,548,739 |
|
|
$ |
1,714,983 |
|
|
$ |
1,738,041 |
|
| Adjusted annualized average
common equity (non-GAAP) |
|
10.46 |
% |
|
|
16.00 |
% |
|
|
11.31 |
% |
|
|
12.06 |
% |
| |
|
|
|
|
|
|
|
| Reconciliation of
Adjusted Annualized Return on Average Tangible Common
Equity |
|
|
|
|
|
|
|
| Average tangible common equity
(non-GAAP) |
$ |
1,133,888 |
|
|
$ |
946,688 |
|
|
$ |
1,117,311 |
|
|
$ |
1,133,124 |
|
| Adjusted annualized average
tangible common equity (non-GAAP) |
|
16.38 |
% |
|
|
26.77 |
% |
|
|
17.82 |
% |
|
|
19.03 |
% |
| |
|
|
|
|
|
|
|
| Reconciliation of
Adjusted Diluted Earnings Per Common Share |
|
|
|
|
|
|
|
| Weighted average shares
outstanding-diluted |
|
42,838,405 |
|
|
|
42,699,752 |
|
|
|
42,791,795 |
|
|
|
42,630,703 |
|
| Adjusted diluted earnings per
common share |
$ |
1.06 |
|
|
$ |
1.46 |
|
|
$ |
4.53 |
|
|
$ |
4.91 |
|
| |
|
|
|
|
|
|
|
| (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 (NASDAQ:HTLF)
Historical Stock Chart
From Mar 2024 to Apr 2024
Heartland Financial USA (NASDAQ:HTLF)
Historical Stock Chart
From Apr 2023 to Apr 2024
