Market Features
Heartland Posts Drop In Profit For Third Quarter
The Associated Press
10/26/09 - 05:07 PM EDT
DUBUQUE, Iowa (AP) Community bank Heartland Financial USA Inc. said Monday that higher loan losses narrowed its profit in the third quarter.
For the three months ended Sept. 30, the company earned $2.2 million, or 13 cents per share. That compared with income of $3 million, or 18 cents per share, in the year-ago period.
The performance missed Wall Street expectations. On average, analysts surveyed by Thomson Reuters forecast earnings of 17 cents per share.
Non-interest income from items such as service charges and fees grew to $11.9 million, up from $7.9 million the same quarter last year.
However, the company's provisions for loan losses in the quarter were $11.9 million, compared with $7.1 million the same time a year ago. The jump was the result of deteriorating economic conditions and higher levels of charge-offs, primarily in the company's Western markets of Arizona, Montana and Colorado, Heartland said.
Shares of Heartland slipped 11 cents to $14.03.