Heartland Financial USA, Inc. (NASDAQ:HTLF):

Quarterly Highlights
  • Net income available to common stockholders of $14.4 million or $0.69 per diluted common share
  • Return on average tangible common equity of 13.22%
  • Net interest margin of 4.01%
  • Completed acquisition of Community Bancorporation of New Mexico, Inc. on August 21, 2015
  • Completed acquisition and systems conversion of First Scottsdale Bank, N.A. on September 11, 2015
  • Announced signing of merger agreement with CIC Bancshares, Inc. on October 23, 2015
     
Quarter Nine Months
Ended Ended
September 30, September 30,
2015   2014 2015   2014
Net income (in millions) $ 14.6 $ 12.0 $ 45.5 $ 29.6
Net income available to common stockholders (in millions) 14.4 11.8 44.8 29.0
Diluted earnings per common share 0.69 0.63 2.16 1.55
 
Return on average assets 0.85 % 0.79 % 0.91 % 0.67 %
Return on average common equity 11.40 11.86 12.38 10.21
Return on average tangible common equity 13.22 13.40 14.31 11.61
Net interest margin 4.01 3.96 3.96 3.97
 
 

"Heartland reported another very solid quarter with net income available to common stockholders of $14.4 million, a 22 percent increase over earnings of $11.8 million in the third quarter of 2014. Among several areas of strength, we attribute these strong results to a widened net interest margin of 4.01 percent during the quarter."
 

Lynn B. Fuller, chairman and chief executive officer, Heartland Financial USA, Inc.
 

Heartland Financial USA, Inc. (NASDAQ: HTLF) today reported net income available to common stockholders of $14.4 million, or $0.69 per diluted common share, for the quarter ended September 30, 2015, compared to $11.8 million, or $0.63 per diluted common share, for the third quarter of 2014. Return on average common equity was 11.40% and return on average assets was 0.85% for the third quarter of 2015, compared to 11.86% and 0.79%, respectively, for the same quarter in 2014.

Commenting on Heartland's third quarter results, Lynn B. Fuller, Heartland's chairman and chief executive officer said, "Heartland reported another very solid quarter with net income available to common stockholders of $14.4 million, a 22 percent increase over earnings of $11.8 million in the third quarter of 2014. Among several areas of strength, we attribute these strong results to a widened net interest margin of 4.01 percent during the quarter."

Net income available to common stockholders for the first nine months of 2015 was $44.8 million, or $2.16 per diluted common share, compared to $29.0 million, or $1.55 per diluted common share, recorded during the first nine months of 2014. Return on average common equity was 12.38% and return on average assets was 0.91% for the first nine months of 2015, compared to 10.21% and 0.67%, respectively, for the same period in 2014.

On January 16, 2015, Heartland completed the acquisition of Community Banc-Corp of Sheboygan, Inc., parent company of Community Bank & Trust in Sheboygan, Wisconsin, in an all stock transaction. Simultaneous with the closing, Community Bank & Trust was merged into Heartland's Wisconsin Bank & Trust subsidiary. As of the close date, the transaction included, at fair value, total assets of $525.3 million, total loans of $395.0 million and total deposits of $434.0 million. The systems conversion for this transaction was completed on May 15, 2015.

On August 21, 2015, Heartland completed the acquisition of Community Bancorporation of New Mexico, Inc., parent company of Community Bank in Santa Fe, New Mexico, in an all cash transaction valued at approximately $11.1 million. Simultaneous with closing of the transaction, Community Bank merged into Heartland's New Mexico Bank & Trust subsidiary. As of the close date, the transaction included, at fair value, total assets of $166.5 million, total loans of $99.5 million and total deposits of $147.4 million. The systems conversion for this transaction is expected to occur during the fourth quarter of 2015.

On September 11, 2015, Heartland completed the acquisition of First Scottsdale Bank, N.A. in Scottsdale, Arizona, in an all cash transaction valued at approximately $17.7 million. Simultaneous with the close, First Scottsdale Bank was merged into Heartland's Arizona Bank & Trust subsidiary. As of the close date, the transaction included, at fair value, total assets of $83.7 million, total loans of $54.7 million and total deposits of $65.9 million. The systems conversion for this transaction was completed simultaneous with the closing.

During the second quarter of 2015, Heartland announced it had entered into a definitive merger agreement with Premier Valley Bank, a community bank based in Fresno, California, that had assets of approximately $655 million at June 30, 2015. Under this agreement, Premier Valley will become a wholly-owned subsidiary of Heartland and operate under its present name and management team as Heartland's tenth state-chartered bank. Subject to adjustment for a minimum tangible equity threshold, Premier Valley shareholders will receive approximately $95 million or $7.73 per share of Premier Valley common stock in the merger, and may elect to receive this payment in shares of Heartland common stock or in cash, subject to proration so that 70% of the total payment is in Heartland common stock and 30% in cash. The transaction is expected to close during the fourth quarter of 2015.

Subsequent to the quarter-end, Heartland entered into a merger agreement with CIC Bancshares, Inc., parent company of Centennial Bank, headquartered in Denver, Colorado. Under the agreement, Heartland will acquire CIC Bancshares, Inc. in a transaction valued at approximately $83.5 million, of which approximately 20 percent would be payable in cash and approximately 80 percent would be payable by issuance of Heartland common stock. Simultaneous with closing of the transaction, Centennial Bank will be merged into Heartland's Summit Bank & Trust, with the resulting institution operating under the Centennial Bank name. Centennial Bank had total assets of approximately $722 million as of June 30, 2015. The transaction is subject to approvals by shareholders of CIC Bancshares, Inc. and bank regulatory authorities, and is expected to close during the first quarter of 2016.

"Expansion of our banking franchise through both organic and acquired growth remains a high priority for Heartland. During the third quarter, Heartland closed acquisitions in New Mexico and Arizona. In the current environment, Heartland is in a great position to leverage new acquisitions and realize cost savings. Going forward, our M&A team is capable of completing up to three systems conversions a year," Fuller said.

Net Interest Margin As a Percentage of Average Earning Assets and In Dollars Increases

Net interest margin, expressed as a percentage of average earning assets, was 4.01% during the third quarter of 2015, an increase from 3.97% during the second quarter of 2015 and 3.96% during the third quarter of 2014.

Fuller said, "We are very pleased to see net interest margin increase to 4.01 percent for the quarter, counter to an industry trend of declining margins. Net interest income in dollars was also up, with a significant increase over last year's quarter and year-to-date periods."

Interest income increased $7.2 million or 12% to $67.3 million in the third quarter of 2015 from the $60.1 million recorded in the third quarter of 2014. After adjustment to add $2.6 million for both the third quarter of 2015 and the third quarter of 2014 for income taxes saved on the interest earned on nontaxable securities and loans, on a tax-equivalent basis, interest income in the third quarter of 2015 was $69.9 million compared to $62.7 million in the third quarter of 2014. The increase in interest income in the third quarter of 2015, as compared to the third quarter of 2014, was primarily due to an increase in average earning assets, which increased $735.2 million or 14% during the third quarter of 2015 compared to the third quarter of 2014, with approximately $527.4 million attributable to the acquisitions completed during 2015 and the remainder attributable primarily to loan growth experienced during the last half of 2014 and first half of 2015. Also contributing to the increase in interest income during the third quarter of 2015 compared to the third quarter of 2014 was a change in the composition of average earning assets from lower-yielding investments to higher-yielding loans. The percentage of average net loans and leases to total earning assets was 75% during the third quarter of 2015 compared to 69% during the third quarter of 2014.

Interest expense for the third quarter of 2015 was $7.5 million, a decrease of $1.1 million or 13% from $8.6 million in the third quarter of 2014. Average interest bearing liabilities increased $391.6 million or 10% for the quarter ended September 30, 2015, as compared to the same quarter in 2014, while the average interest rate paid on Heartland's interest bearing deposits and borrowings declined 16 basis points from 0.83% in the third quarter of 2014 to 0.67% in the third quarter of 2015. The average interest rate paid on savings deposits was 0.22% during the third quarter of 2015 compared to 0.31% during the third quarter of 2014 and the average interest rate paid on time deposits was 0.91% during the third quarter of 2015 compared to 1.22% during the third quarter of 2014.

Net interest income increased $8.2 million or 16% to $59.7 million in the third quarter of 2015 from the $51.5 million recorded in the third quarter of 2014. Net interest income on a tax-equivalent basis totaled $62.3 million during the third quarter of 2015, an increase of $8.2 million or 15% from the $54.1 million recorded during the third quarter of 2014.

Noninterest Income Increases; Noninterest Expense Increases

Noninterest income totaled $25.0 million during the third quarter of 2015 compared to $20.6 million during the third quarter of 2014, an increase of $4.4 million or 21%. Service charges and fees totaled $6.4 million during the third quarter of 2015 compared to $4.9 million during the third quarter of 2014, an increase of $1.5 million or 31%. Net securities gains totaled $1.8 million during the third quarter of 2015 compared to $825,000 during the third quarter of 2014, an increase of $942,000 or 114%. Gains on sale of loans held for sale totaled $9.8 million during the third quarter of 2015 compared to $8.4 million during the third quarter of 2014, an increase of $1.4 million or 17%.

For the third quarter of 2015, noninterest expenses totaled $62.0 million compared to $54.7 million during the third quarter of 2014, an increase of $7.3 million or 13%. The largest contributor to this increase was salaries and employee benefits, which increased $3.5 million or 10%, with $1.1 million attributable to acquisitions. The other noninterest expense category with a significant increase during the third quarter of 2015 in comparison with the third quarter of 2014 was other noninterest expenses, which increased $1.6 million or 22%. Included in other noninterest expenses are costs associated with partnership investments in real estate projects that qualify for historic rehabilitation tax credits, which totaled $805,000 during the third quarter of 2015 and $1.4 million during the third quarter of 2014. These credits are included as a reduction to income tax expense as further described below. Excluding the effect of the cost associated with the tax credit investments, other noninterest expenses increased $2.2 million or 37% during the third quarter of 2015 in comparison to the third quarter of 2014, primarily as a result of one-time costs associated with the acquisitions and additional investments in technology.

Fuller commented, "Heartland's residential real estate division had originations of $371 million, $59 million higher than the third quarter 2014, bringing our annual volume to over $1.1 billion. We continue to refine our strategy with regard to the mortgage business and have closed some low volume, out-of-footprint loan production offices during the second and third quarters of 2015 in favor of building out the business within our current service areas."

Heartland's effective tax rate was 25.32% for the third quarter of 2015 compared to 19.58% for the third quarter of 2014. Included in Heartland's income taxes for the third quarters of both 2015 and 2014 were federal historic rehabilitation tax credits associated with Heartland's ownership interest in qualifying real estate projects totaling $1.1 million in 2015 and $1.8 million in 2014. Federal low-income housing tax credits included in Heartland's income taxes totaled $145,000 during the third quarter of 2015 compared to $166,000 during the third quarter of 2014. Heartland's effective tax rate was also affected by the level of tax-exempt interest income which, as a percentage of pre-tax income, was 24.61% during the third quarter of 2015 compared to 32.59% during the third quarter of 2014.

Loans and Deposits Increase

Total assets were $6.81 billion at September 30, 2015, an increase of $754.1 million or 12% since year-end 2014. Total assets of the entities acquired during 2015 were $775.5 million at acquisition date. Securities represented 23% of total assets at September 30, 2015, compared to 28% at year-end 2014.

Total loans and leases held to maturity were $4.64 billion at September 30, 2015, compared to $3.88 billion at year-end 2014, an increase of $765.8 million or 20%, which includes $549.2 million acquired during 2015 in acquisitions. Exclusive of these acquisitions, total loans and leases held to maturity increased $216.5 million or 7% annualized since year-end 2014.

Fuller stated, "Loan growth continues as our highest priority this year. Year-to-date, we have seen loan growth of 7 percent annualized, which is very close to our 8 percent target."

Total deposits were $5.51 billion as of September 30, 2015, compared to $4.77 billion at year-end 2014, an increase of $739.2 million or 16%, with $647.3 million attributable to the acquisitions completed during 2015. Exclusive of these acquisitions, total deposits increased $91.9 million or 3% annualized since year-end 2014. Demand deposits totaled $1.63 billion at September 30, 2015, an increase of $336.8 million or 26% since year-end 2014, with $145.5 million attributable to the acquisitions. Included in the deposit growth during the first nine months of 2015 was a $88.1 million increase in brokered time deposits, the majority of which were issued to replace higher cost long-term FHLB advances and wholesale repurchase agreements that matured during the first six months of 2015.

Fuller said, "We have experienced some organic growth in deposits with a year-to-date increase of 3 percent annualized. The growth was accompanied by a favorable shift in deposit mix with noninterest demand deposits increasing to nearly 30 percent of total."

Nonperforming Assets and Provision for Loan Losses Increase

Nonperforming loans, excluding those covered under loss sharing agreements, were $33.8 million or 0.73% of total loans and leases at September 30, 2015, compared to $25.1 million or 0.63% of total loans and leases at December 31, 2014. Exclusive of $11.4 million of nonperforming assets acquired in the acquisitions, nonperforming assets decreased $4.8 million or 12% since year-end 2014.

The allowance for loan and lease losses at September 30, 2015, was 1.01% of loans and leases and 139.54% of nonperforming loans compared to 1.07% of loans and leases and 165.33% of nonperforming loans at December 31, 2014. The provision for loan losses was $3.2 million for the third quarter of 2015 compared to $2.6 million for the third quarter of 2014.

Conference Call DetailsHeartland will host a conference call for investors at 5:00 p.m. EDT today. To participate, dial 877-407-0782 at least five minutes before start time. To listen to the live webcast, log on to www.htlf.com at least 15 minutes before start time. A replay will be available until October 25, 2016, by logging on to www.htlf.com.

About Heartland Financial USA, Inc.Heartland Financial USA, Inc. is a $6.8 billion diversified financial services company providing banking, mortgage, wealth management, investment, insurance and consumer finance services to individuals and businesses. Heartland currently has 89 banking locations in 68 communities in Iowa, Illinois, Wisconsin, New Mexico, Arizona, Montana, Colorado, Minnesota, Kansas, Missouri and Texas, with loan production offices in California, Nevada and Idaho. Additional information about Heartland Financial USA, Inc. is available at www.htlf.com.

Safe Harbor StatementThis release, and future oral and written statements of Heartland and its management, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Heartland's financial condition, results of operations, plans, objectives, future performance and business. Although these forward-looking statements are based upon the beliefs, expectations and assumptions of Heartland's management, there are a number of factors, 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 are detailed in the risk factors included in Heartland's Annual Report on Form 10-K filed with the Securities and Exchange Commission, include, among others: (i) the strength of the local and national economy; (ii) the economic impact of past and any future terrorist threats and attacks and any acts of war, (iii) changes in state and federal laws, regulations and governmental policies concerning the Company's general business; (iv) changes in interest rates and prepayment rates of the Company's assets; (v) increased competition in the financial services sector and the inability to attract new customers; (vi) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (vii) the potential impact of acquisitions, (viii) the loss of key executives or employees; (ix) changes in consumer spending; (x) unexpected outcomes of existing or new litigation involving the Company; and (xi) changes in accounting policies and practices. All statements in this release, including forward-looking statements, speak only as of the date they are made, and Heartland undertakes no obligation to update any statement in light of new information or future events.
 
HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
    For the Quarter Ended     For the Nine Months Ended
September 30, September 30,
      2015     2014     2015     2014
Interest Income        
Interest and fees on loans and leases $ 58,328 $ 49,311 $ 167,201 $ 143,796
Interest on securities:
Taxable 5,858 7,547 19,729 22,755
Nontaxable 3,077 3,249 8,867 10,079
Interest on federal funds sold 1 1 3 1
Interest on deposits in other financial institutions 4   6   11   20  
Total Interest Income 67,268   60,114   195,811   176,651  
Interest Expense
Interest on deposits 3,767 4,655 11,758 14,010
Interest on short-term borrowings 228 227 638 655
Interest on other borrowings 3,549   3,741   12,117   11,084  
Total Interest Expense 7,544   8,623   24,513   25,749  
Net Interest Income 59,724 51,491 171,298 150,902
Provision for loan and lease losses 3,181   2,553   10,526   11,635  
Net Interest Income After Provision for Loan and Lease Losses 56,543   48,938   160,772   139,267  
Noninterest Income
Service charges and fees 6,350 4,857 17,654 15,007
Loan servicing income 1,368 1,319 3,572 4,223
Trust fees 3,507 3,194 11,051 9,747
Brokerage and insurance commissions 869 1,044 2,872 3,325
Securities gains, net 1,767 825 9,230 2,460
Loss on trading account securities (38 )
Gains on sale of loans held for sale 9,823 8,384 38,164 23,559
Income on bank owned life insurance 372 371 1,355 1,073
Other noninterest income 924   612   2,406   1,635  
Total Noninterest Income 24,980   20,606   86,304   60,991  
Noninterest Expense
Salaries and employee benefits 37,033 33,546 110,522 98,428
Occupancy 4,307 3,807 12,594 11,841
Furniture and equipment 2,121 2,033 6,403 6,008
Professional fees 5,251 4,429 16,544 13,169
FDIC insurance assessments 1,018 888 2,873 2,848
Advertising 1,327 1,383 3,841 4,082
Intangible assets amortization 734 521 2,080 1,736
Other real estate and loan collection expenses 496 215 1,714 1,785
Loss on sales/valuations of assets, net 721 447 2,583 1,989
Other noninterest expenses 8,988   7,386   25,938   19,966  
Total Noninterest Expense 61,996   54,655   185,092   161,852  
Income Before Income Taxes 19,527 14,889 61,984 38,406
Income taxes 4,945   2,916   16,533   8,769  
Net Income 14,582 11,973 45,451 29,637
Preferred dividends and discount (205 ) (205 ) (613 ) (613 )
Net Income Available to Common Stockholders $ 14,377   $ 11,768   $ 44,838   $ 29,024  
Earnings per common share-diluted $ 0.69 $ 0.63 $ 2.16 $ 1.55
Weighted average shares outstanding-diluted 20,893,312 18,752,748 20,751,664 18,742,950
 
 
HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
    For the Quarter Ended
      9/30/2015     6/30/2015     3/31/2015     12/31/2014

 
 

9/30/2014
Interest Income              
Interest and fees on loans and leases $ 58,328 $ 55,824 $ 53,049 $ 50,226 $ 49,311
Interest on securities:
Taxable 5,858 6,739 7,132 6,972 7,547
Nontaxable 3,077 2,874 2,916 3,190 3,249
Interest on federal funds sold 1 1 1 1
Interest on deposits in other financial institutions 4   3   4   3   6  
Total Interest Income 67,268   65,441   63,102   60,391   60,114  
Interest Expense
Interest on deposits 3,767 3,819 4,172 4,144 4,655
Interest on short-term borrowings 228 212 198 222 227
Interest on other borrowings 3,549   3,766   4,802   3,854   3,741  
Total Interest Expense 7,544   7,797   9,172   8,220   8,623  
Net Interest Income 59,724 57,644 53,930 52,171 51,491
Provision for loan and lease losses 3,181   5,674   1,671   2,866   2,553  
Net Interest Income After Provision for Loan and Lease Losses 56,543   51,970   52,259   49,305   48,938  
Noninterest Income
Service charges and fees 6,350 5,900 5,404 5,078 4,857
Loan servicing income 1,368 1,163 1,041 1,360 1,319
Trust fees 3,507 3,913 3,631 3,350 3,194
Brokerage and insurance commissions 869 916 1,087 1,115 1,044
Securities gains, net 1,767 3,110 4,353 1,208 825
Loss on trading account securities
Gains on sale of loans held for sale 9,823 14,599 13,742 7,778 8,384
Income on bank owned life insurance 372 459 524 399 371
Other noninterest income 924   601   881   945   612  
Total Noninterest Income 24,980   30,661   30,663   21,233   20,606  
Noninterest Expense
Salaries and employee benefits 37,033 36,851 36,638 31,415 33,546
Occupancy 4,307 4,028 4,259 3,905 3,807
Furniture and equipment 2,121 2,176 2,106 2,097 2,033
Professional fees 5,251 5,249 6,044 5,072 4,429
FDIC insurance assessments 1,018 899 956 960 888
Advertising 1,327 1,333 1,181 1,442 1,383
Intangible assets amortization 734 715 631 487 521
Other real estate and loan collection expenses 496 753 465 524 215
Loss on sales/valuations of assets, net 721 1,509 353 116 447
Other noninterest expenses 8,988   9,969   6,981   7,930   7,386  
Total Noninterest Expense 61,996   63,482   59,614   53,948   54,655  
Income Before Income Taxes 19,527 19,149 23,308 16,590 14,889
Income taxes 4,945   3,989   7,599   4,327   2,916  
Net Income 14,582 15,160 15,709 12,263 11,973
Preferred dividends and discount (205 ) (204 ) (204 ) (204 ) (205 )
Net Income Available to Common Stockholders $ 14,377   $ 14,956   $ 15,505   $ 12,059   $ 11,768  
Earnings per common share-diluted $ 0.69 $ 0.72 $ 0.76 $ 0.64 $ 0.63
Weighted average shares outstanding-diluted 20,893,312 20,877,236 20,493,266 18,762,272 18,752,748
 
 
HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
    As Of
      9/30/2015     6/30/2015     3/31/2015     12/31/2014     9/30/2014
Assets                
Cash and due from banks $ 76,954 $ 111,909 $ 104,475 $ 64,150 $ 63,400
Federal funds sold and other short-term investments 14,151   7,813   7,257   9,721   4,436  
Cash and cash equivalents 91,105 119,722 111,732 73,871 67,836
Time deposits in other financial institutions 2,355 2,355 2,605 2,605 2,605
Securities:
Available for sale, at fair value 1,261,687 1,315,699 1,353,537 1,401,868 1,369,703
Held to maturity, at cost 282,200 283,258 284,030 284,587 255,312
Other investments, at cost 19,292 20,455 18,297 20,498 20,514
Loans held for sale 102,569 105,898 105,670 70,514 93,054
Loans and leases:
Held to maturity 4,642,523 4,449,823 4,243,689 3,876,745 3,798,305
Loans covered by loss share agreements 1,258 3,850
Allowance for loan and lease losses (47,105 ) (45,614 ) (41,854 ) (41,449 ) (41,698 )
Loans and leases, net 4,595,418 4,404,209 4,201,835 3,836,554 3,760,457
Premises, furniture and equipment, net 147,486 143,423 145,132 130,713 132,240
Other real estate, net 17,041 16,983 19,097 19,016 20,475
Goodwill 56,828 54,162 51,073 35,583 35,583
Other intangible assets, net 48,695 45,226 44,024 33,932 33,399
Cash surrender value on life insurance 99,564 96,693 95,118 82,638 82,224
FDIC indemnification asset 83
Other assets 81,644   108,924   74,126   59,433   61,122  
Total Assets $ 6,805,884   $ 6,717,007   $ 6,506,276   $ 6,051,812   $ 5,934,607  
Liabilities and Equity
Liabilities
Deposits:
Demand $ 1,632,005 $ 1,536,355 $ 1,515,004 $ 1,295,193 $ 1,274,439
Savings 2,936,611 2,816,666 2,863,744 2,687,493 2,599,850
Time 938,621   964,248   887,650   785,336   852,430  
Total deposits 5,507,237 5,317,269 5,266,398 4,768,022 4,726,719
Short-term borrowings 335,845 477,918 259,335 330,264 348,305
Other borrowings 302,086 296,594 361,300 395,705 334,311
Accrued expenses and other liabilities 69,707   46,020   51,896   61,504   41,873  
Total Liabilities 6,214,875 6,137,801 5,938,929 5,555,495 5,451,208
Stockholders' Equity
Preferred equity 81,698 81,698 81,698 81,698 81,698
Common stock 20,640 20,616 20,586 18,511 18,477
Capital surplus 149,613 148,789 147,642 95,816 94,393
Retained earnings 337,421 325,106 312,212 298,764 288,555
Accumulated other comprehensive income 1,731 3,059 5,255 1,528 276
Treasury stock at cost (94 ) (62 ) (46 )    
Total Equity 591,009   579,206   567,347   496,317   483,399  
Total Liabilities and Equity $ 6,805,884   $ 6,717,007   $ 6,506,276   $ 6,051,812   $ 5,934,607  
 
 
HEARTLAND FINANCIAL USA, INC
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
    For the Quarter Ended    

For the Nine Months Ended
September 30,

September 30,
      2015     2014     2015     2014
Average Balances        
Assets $ 6,726,196 $ 5,882,792 $ 6,603,085 $ 5,818,160
Loans and leases, net of unearned 4,654,179 3,812,218 4,457,715 3,692,718
Deposits 5,423,418 4,710,177 5,296,771 4,670,070
Earning assets 6,161,495 5,426,336 6,030,612 5,342,481
Interest bearing liabilities 4,491,089 4,099,526 4,447,165 4,093,520
Common stockholders' equity 500,399 393,740 484,418 380,165
Total stockholders' equity 582,097 475,438 566,116 461,863
Tangible common stockholders' equity 431,304 348,423 419,059 334,131
 
Key Performance Ratios
Annualized return on average assets 0.85 % 0.79 % 0.91 % 0.67 %
Annualized return on average common equity 11.40 % 11.86 % 12.38 % 10.21 %
Annualized return on average common tangible equity 13.22 % 13.40 % 14.31 % 11.61 %
Annualized ratio of net charge-offs to average loans and leases 0.14 % 0.18 % 0.15 % 0.42 %
Annualized net interest margin (1) 4.01 % 3.96 % 3.96 % 3.97 %
Efficiency ratio, fully taxable equivalent (2) 69.85 % 70.76 % 69.37 % 72.16 %
 
(1) Computed on a tax equivalent basis using an effective tax rate of 35%.
(2) Refer to the "Non-GAAP Reconciliation-Efficiency Ratio" table that follows for details of this non-GAAP measure.
 
HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
    For the Quarter Ended
      9/30/2015       6/30/2015     3/31/2015     12/31/2014     9/30/2014
Average Balances
Assets $ 6,726,196 $ 6,625,797 $ 6,454,271 $ 5,974,188 $ 5,882,792
Loans and leases, net of unearned 4,654,179 4,447,124 4,267,593 3,899,465 3,812,218
Deposits 5,423,418 5,302,235 5,161,782 4,784,592 4,710,177
Earning assets 6,161,495 6,069,844 5,857,204 5,508,287 5,426,336
Interest bearing liabilities 4,491,089 4,451,200 4,398,184 4,123,478 4,099,526
Common stockholders' equity 500,399 489,394 463,048 406,664 393,740
Total stockholders' equity 582,097 571,092 544,746 488,362 475,438
Tangible common stockholders' equity 431,304 424,245 401,294 361,916 348,423
 
Key Performance Ratios
Annualized return on average assets 0.85 % 0.91 % 0.97 % 0.80 % 0.79 %
Annualized return on average common equity 11.40 % 12.26 % 13.58 % 11.77 % 11.86 %
Annualized return on average common tangible equity 13.22 % 14.14 % 15.67 % 13.22 % 13.40 %
Annualized ratio of net charge-offs to average loans and leases 0.14 % 0.17 % 0.12 % 0.32 % 0.18 %
Annualized net interest margin (1) 4.01 % 3.97 % 3.90 % 3.94 % 3.96 %
Efficiency ratio, fully taxable equivalent (2) 69.85 % 67.43 % 70.95 % 69.99 % 70.76 %
 
(1) Computed on a tax equivalent basis using an effective tax rate of 35%.
(2) Refer to the "Non-GAAP Reconciliation-Efficiency Ratio" table that follows for details of this non-GAAP measure.
 
 
HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
    For the Quarter Ended    

For the Nine Months Ended
September 30, September 30,
Reconciliation of Non-GAAP Measure-Efficiency Ratio     2015     2014     2015     2014
Net interest income $ 59,724     $ 51,491 $ 171,298     $ 150,902
Taxable equivalent adjustment (1) 2,588   2,613   7,389   7,747  
Fully taxable equivalent net interest income 62,312 54,104 178,687 158,649
Noninterest income 24,980 20,606 86,304 60,991
Securities gains, net (1,767 ) (825 ) (9,230 ) (2,460 )
Adjusted income $ 85,525   $ 73,885   $ 255,761   $ 217,180  
 
Total noninterest expenses $ 61,996 $ 54,655 $ 185,092 $ 161,852
Less:
Intangible assets amortization 734 521 2,080 1,736
Partnership investment in historic rehabilitation tax credits 805 1,408 2,995 1,408
Loss on sales/valuations of assets, net 721   447   2,583   1,989  
Adjusted noninterest expenses $ 59,736   $ 52,279   $ 177,434   $ 156,719  
 
Efficiency ratio, fully taxable equivalent (2) 69.85 % 70.76 % 69.37 % 72.16 %
 
(1) Computed on a tax equivalent basis using an effective tax rate of 35%.
(2) Efficiency ratio, fully taxable equivalent, expresses noninterest expenses as a percentage of fully taxable 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 historic rehabilitation tax credits. 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, such as securities gains, net and losses on sales/valuations of assets, net. This measure should not be considered a substitute for operating results determined in accordance with GAAP.
 
HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
      For the Quarter Ended
    9/30/2015       6/30/2015     3/31/2015     12/31/2014     9/30/2014
Reconciliation of Non-GAAP Measure-Efficiency Ratio
Net interest income $ 59,724 $ 57,644 $ 53,930 $ 52,171 $ 51,491
Taxable equivalent adjustment (1) 2,588   2,408   2,393   2,550   2,613  
Fully taxable equivalent net interest income 62,312 60,052 56,323 54,721 54,104
Noninterest income 24,980 30,661 30,663 21,233 20,606
Securities gains, net (1,767 ) (3,110 ) (4,353 ) (1,208 ) (825 )
Adjusted income $ 85,525   $ 87,603   $ 82,633   $ 74,746   $ 73,885  
 
Total noninterest expenses $ 61,996 $ 63,482 $ 59,614 $ 53,948 $ 54,655
Less:
Intangible assets amortization 734 715 631 487 521
Partnership investment in historic rehabilitation tax credits 805 2,190 1,028 1,408
Loss on sales/valuation of assets, net 721   1,509   353   116   447  
Adjusted noninterest expenses $ 59,736   $ 59,068   $ 58,630   $ 52,317   $ 52,279  
 
Efficiency ratio, fully taxable equivalent (2) 69.85 % 67.43 % 70.95 % 69.99 % 70.76 %
 
(1) Computed on a tax equivalent basis using an effective tax rate of 35%.
(2) Efficiency ratio, fully taxable equivalent, expresses noninterest expenses as a percentage of fully taxable 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 historic rehabilitation tax credits. 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, such as securities gains, net and losses on sales/valuations of assets, net. This measure should not be considered a substitute for operating results determined in accordance with GAAP.
 
 
HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE AND FULL TIME EQUIVALENT EMPLOYEE DATA
    As of and for the Quarter Ended
      9/30/2015     6/30/2015     3/31/2015     12/31/2014     9/30/2014
Common Share Data                
Book value per common share $ 24.68 $ 24.13 $ 23.59 $ 22.40 $ 21.74
Tangible book value per common share (1) $ 21.20 $ 20.84 $ 20.41 $ 19.99 $ 19.30
ASC 320 effect on book value per common share $ 0.22 $ 0.21 $ 0.38 $ 0.19 $ 0.10
Common shares outstanding, net of treasury stock 20,637,321 20,614,325 20,585,072 18,511,125 18,477,463
Tangible capital ratio (2) 6.50 % 6.46 % 6.52 % 6.16 % 6.06 %
 
Loan and Lease Data
Loans held to maturity:
Commercial and commercial real estate $ 3,303,098 $ 3,199,717 $ 3,067,315 $ 2,743,140 $ 2,709,544
Residential mortgage 491,667 443,026 413,938 380,341 360,309
Agricultural and agricultural real estate 469,381 444,110 411,732 423,827 404,423
Consumer 379,903 364,441 351,981 330,555 326,148
Unearned discount and deferred loan fees (1,526 ) (1,471 ) (1,277 ) (1,118 ) (2,119 )
Total loans and leases held to maturity $ 4,642,523   $ 4,449,823   $ 4,243,689   $ 3,876,745   $ 3,798,305  
 
Loans covered under loss share agreements:
Commercial and commercial real estate $ $ $ $ 54 $ 1,188
Residential mortgage 1,204 1,762
Agricultural and agricultural real estate 573
Consumer         327  
Total loans and leases covered under loss share agreements $   $   $   $ 1,258   $ 3,850  
 
Other Selected Trend Information
Effective tax rate 25.32 % 20.83 % 32.60 % 26.08 % 19.58 %
Full time equivalent employees 1,736 1,788 1,776 1,631 1,646
Trust assets under management $ 1,861,821 $ 1,957,616 $ 2,064,044 $ 1,860,546 $ 1,820,612
Total Residential Mortgage Loan Applications $ 443,294 $ 615,463 $ 647,487 $ 383,845 $ 445,039
Residential Mortgage Loans Originated $ 370,956 $ 421,798 $ 319,581 $ 293,268 $ 312,428
Residential Mortgage Loans Sold $ 360,172 $ 402,151 $ 268,786 $ 281,250 $ 283,677
Residential Mortgage Loan Servicing Portfolio $ 3,963,677 $ 3,785,794 $ 3,578,409 $ 3,498,724 $ 3,362,717
 
(1) Total common stockholders' equity less goodwill and intangible assets (excluding servicing rights) divided by common shares outstanding, net of treasury. This is a non-GAAP financial measure but has been included as it is considered to be a critical metric with which to analyze and evaluate financial condition and capital strength.
(2) Total common stockholders' equity less goodwill and intangible assets (excluding servicing rights) divided by total assets less intangible assets (excluding mortgage servicing rights). This is a non-GAAP financial measure but has been included as it is considered to be a critical metric with which to analyze and evaluate financial condition and capital strength.
 
 
HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
    As of and for the Quarter Ended
      9/30/2015     6/30/2015     3/31/2015     12/31/2014     9/30/2014
Allowance for Loan and Lease Losses                
Balance, beginning of period $ 45,614 $ 41,854 $ 41,449 $ 41,698 $ 40,892
Provision for loan and lease losses 3,181 5,674 1,671 2,866 2,553
Charge-offs on loans not covered by loss share agreements (2,439 ) (2,734 ) (2,004 ) (4,020 ) (2,649 )
Charge-offs on loans covered by loss share agreements
Recoveries 749 820 738 905 894
Recoveries on loans covered by loss share agreements         8  
Balance, end of period $ 47,105   $ 45,614   $ 41,854   $ 41,449   $ 41,698  
 
Asset Quality
Not covered under loss share agreements:
Nonaccrual loans $ 32,577 $ 26,710 $ 27,023 $ 25,070 $ 30,130
Loans and leases past due ninety days or more as to interest or principal payments 1,181 9
Other real estate owned 17,041 16,983 19,097 19,016 19,873
Other repossessed assets 626   544   404   445   506  
Total nonperforming assets not covered under loss share agreements $ 51,425   $ 44,237   $ 46,533   $ 44,531   $ 50,509  
 
Covered under loss share agreements:
Nonaccrual loans $ $ $ $ 278 $ 297
Other real estate owned         602  
Total nonperforming assets covered under loss share agreements $   $   $   $ 278   $ 899  
 
Performing troubled debt restructured loans $ 10,154 $ 10,903 $ 10,904 $ 12,133 $ 11,994
 
Nonperforming Assets Activity
Balance, beginning of period $ 44,237 $ 46,533 $ 44,809 $ 51,408 $ 54,182
Net loan charge offs (1,690 ) (1,914 ) (1,266 ) (3,115 ) (1,747 )
New nonperforming loans 7,996 4,676 4,059 5,226 5,911
Acquired nonperforming assets 5,328 6,101
Reduction of nonperforming loans (1) (2,758 ) (1,409 ) (4,493 ) (6,446 ) (2,679 )
OREO/Repossessed assets sales proceeds (1,074 ) (3,202 ) (2,312 ) (1,252 ) (4,313 )
OREO/Repossessed assets writedowns, net (756 ) (565 ) (319 ) (918 ) (38 )
Net activity at Citizens Finance Co. 142   118   (46 ) (94 ) 92  
Balance, end of period $ 51,425   $ 44,237   $ 46,533   $ 44,809   $ 51,408  
 
Asset Quality Ratios Excluding Assets Covered Under Loss Share Agreements
Ratio of nonperforming loans and leases to total loans and leases 0.73 % 0.60 % 0.64 % 0.63 % 0.79 %
Ratio of nonperforming assets to total assets 0.76 % 0.66 % 0.72 % 0.73 % 0.85 %
Annualized ratio of net loan charge-offs to average loans and leases 0.14 % 0.17 % 0.12 % 0.32 % 0.18 %
Allowance for loan and lease losses as a percent of loans and leases 1.01 % 1.03 % 0.99 % 1.07 % 1.10 %
Allowance for loan and lease losses as a percent of nonperforming loans and leases 139.54 % 170.78 % 154.83 % 165.33 % 138.40 %
Loans delinquent 30-89 days as a percent of total loans 0.40 % 0.31 % 0.42 % 0.21 % 0.32 %
 
(1) Includes principal reductions and transfers to performing status
 
 
HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS
    For the Quarter Ended
September 30, 2015     September 30, 2014
Average         Average        
      Balance     Interest     Rate     Balance     Interest     Rate
Earning Assets
Securities:
Taxable $ 1,192,259 $ 5,858 1.95 % $ 1,279,612 $ 7,547 2.34 %
Nontaxable (1) 348,760   4,733   5.38   367,791   4,997   5.39  
Total securities 1,541,019   10,591   2.73   1,647,403   12,544   3.02  
Interest bearing deposits 11,567 4 0.14 8,098 6 0.29
Federal funds sold 1,032   1   0.38   344   1   1.15  
Loans and leases: (2)
Commercial and commercial real estate (1) 3,252,610 38,802 4.73 2,656,438 32,249 4.82
Residential mortgage 570,117 5,848 4.07 435,965 4,589 4.18
Agricultural and agricultural real estate (1) 461,144 5,525 4.75 398,571 5,030 5.01
Consumer 370,308 7,384 7.91 321,244 6,704 8.28
Fees on loans 1,701 1,603
Less: allowance for loan and lease losses (46,302 )     (41,727 )    
Net loans and leases 4,607,877   59,260   5.10   3,770,491   50,175   5.28  
Total earning assets 6,161,495   69,856   4.50 % 5,426,336   62,726   4.59 %
Nonearning Assets 564,701   456,456  
Total Assets $ 6,726,196   $ 5,882,792  
Interest Bearing Liabilities
Savings $ 2,870,847 $ 1,565 0.22 % $ 2,592,630 $ 2,032 0.31 %
Time, $100,000 and over 337,163 741 0.87 320,849 924 1.14
Other time deposits 622,110 1,461 0.93 534,544 1,699 1.26
Short-term borrowings 362,094 228 0.25 316,874 227 0.28
Other borrowings 298,875   3,549   4.71   334,629   3,741   4.44  
Total interest bearing liabilities 4,491,089   7,544   0.67 % 4,099,526   8,623   0.83 %
Noninterest Bearing Liabilities
Noninterest bearing deposits 1,593,298 1,262,154
Accrued interest and other liabilities 59,712   45,674  
Total noninterest bearing liabilities 1,653,010   1,307,828  
Stockholders' Equity 582,097   475,438  
Total Liabilities and Stockholders' Equity $ 6,726,196   $ 5,882,792  
Net interest income (1) $ 62,312   $ 54,103  
Net interest spread (1) 3.83 % 3.76 %
Net interest income to total earning assets (1) 4.01 % 3.96 %
Interest bearing liabilities to earning assets 72.89 % 75.55 %
 
(1) Computed on a tax equivalent basis using an effective tax rate of 35%
(2) Nonaccrual loans are included in average loans outstanding.
 
 
HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS
    For the Nine Months Ended
September 30, 2015     September 30, 2014
Average         Average        
Balance Interest Rate Balance Interest Rate
Earning Assets
Securities:
Taxable $ 1,266,546 $ 19,729 2.08 % $ 1,303,152 $ 22,755 2.33 %
Nontaxable (1) 335,104   13,641   5.44   380,154   15,506   5.45  
Total securities 1,601,650   33,370   2.79   1,683,306   38,261   3.04  
Interest bearing deposits 10,541 11 0.14 7,256 20 0.37
Federal funds sold 4,562   3   0.09   450   1   0.30  
Loans and leases: (2)
Commercial and commercial real estate (1) 3,133,525 112,343 4.79 2,580,868 93,978 4.87
Residential mortgage 529,412 16,146 4.08 421,571 13,554 4.30
Agricultural and agricultural real estate (1) 436,050 15,835 4.86 381,406 14,508 5.09
Consumer 358,728 21,476 8.00 308,873 19,372 8.39
Fees on loans 4,016 4,704
Less: allowance for loan and lease losses (43,856 )     (41,249 )    
Net loans and leases 4,413,859   169,816   5.14   3,651,469   146,116   5.35  
Total earning assets 6,030,612   203,200   4.50 % 5,342,481   184,398   4.61 %
Nonearning Assets 572,473   475,679  
Total Assets $ 6,603,085   $ 5,818,160  
Interest Bearing Liabilities
Savings $ 2,851,506 $ 5,002 0.23 % $ 2,572,492 $ 6,184 0.32 %
Time, $100,000 and over 343,369 2,373 0.92 329,976 2,641 1.07
Other time deposits 570,446 4,383 1.03 548,171 5,185 1.26
Short-term borrowings 343,537 638 0.25 308,000 655 0.28
Other borrowings 338,307   12,117   4.79   334,881   11,084   4.43  
Total interest bearing liabilities 4,447,165   24,513   0.74 % 4,093,520   25,749   0.84 %
Noninterest Bearing Liabilities
Noninterest bearing deposits 1,531,450 1,219,431
Accrued interest and other liabilities 58,354   43,346  
Total noninterest bearing liabilities 1,589,804   1,262,777  
Stockholders' Equity 566,116   461,863  
Total Liabilities and Stockholders' Equity $ 6,603,085   $ 5,818,160  
Net interest income (1) $ 178,687   $ 158,649  
Net interest spread (1) 3.76 % 3.77 %
Net interest income to total earning assets (1) 3.96 % 3.97 %
Interest bearing liabilities to earning assets 73.74 % 76.62 %
 
(1) Computed on a tax equivalent basis using an effective tax rate of 35%
(2) Nonaccrual loans are included in the average loans outstanding.
 
 
HEARTLAND FINANCIAL USA, INC.
SELECTED FINANCIAL DATA - SUBSIDIARY BANKS (Unaudited)
DOLLARS IN THOUSANDS
    As of and For the Quarter Ended
      9/30/2015     6/30/2015     3/31/2015     12/31/2014     9/30/2014
Total Assets                
Dubuque Bank and Trust Company $ 1,431,767 $ 1,541,610 $ 1,413,772 $ 1,508,573 $ 1,389,241
New Mexico Bank & Trust 1,282,784 1,141,575 1,113,031 1,142,580 1,069,722
Wisconsin Bank & Trust 1,098,405 1,150,867 1,128,104 650,658 664,630
Morrill & Janes Bank and Trust Company 845,067 860,781 888,321 898,161 867,346
Illinois Bank & Trust (1) 769,170 784,162 748,937 778,542 798,934
Arizona Bank & Trust 599,119 510,838 487,059 470,997 471,661
Rocky Mountain Bank 501,093 508,262 477,799 468,671 480,345
Minnesota Bank & Trust 188,633 195,201 169,254 167,808 165,580
Summit Bank & Trust     155,114       152,672       140,868       134,145       137,774  
Total Deposits
Dubuque Bank and Trust Company $ 1,120,999 $ 1,144,932 $ 1,166,070 $ 1,211,896 $ 1,055,036
New Mexico Bank & Trust 1,047,358 891,003 880,422 860,465 828,637
Wisconsin Bank & Trust 904,803 985,804 939,157 554,722 564,674
Morrill & Janes Bank and Trust Company 650,123 662,524 696,606 703,016 686,833
Illinois Bank & Trust (1) 641,024 645,354 625,885 600,357 654,592
Arizona Bank & Trust 491,254 405,680 378,422 351,635 390,167
Rocky Mountain Bank 428,234 417,647 407,958 395,609 395,728
Minnesota Bank & Trust 163,291 172,547 148,773 150,146 148,453
Summit Bank & Trust     139,826       122,928       124,113       111,859       118,896  
Net Income (Loss)
Dubuque Bank and Trust Company $ 4,477 $ 7,416 $ 6,016 $ 5,184 $ 4,480
New Mexico Bank & Trust 3,220 3,658 4,164 2,015 3,201
Wisconsin Bank & Trust 3,886 2,950 2,181 1,737 1,077
Morrill & Janes Bank and Trust Company 2,024 1,566 1,656 2,157 1,626
Illinois Bank & Trust (1) 1,877 1,309 2,482 1,721 1,538
Arizona Bank & Trust 1,254 998 677 1,159 551
Rocky Mountain Bank 1,471 1,196 1,156 1,684 1,448
Minnesota Bank & Trust 411 223 162 395 106
Summit Bank & Trust     (6 )     (81 )     305       (491 )     (65 )
Return on Average Assets
Dubuque Bank and Trust Company 1.20 % 2.02 % 1.66 % 1.43 % 1.27 %
New Mexico Bank & Trust 1.07 1.28 1.52 0.72 1.20
Wisconsin Bank & Trust 1.37 1.04 0.83 1.05 0.65
Morrill & Janes Bank and Trust Company 0.95 0.72 0.77 0.99 0.76
Illinois Bank & Trust (1) 0.96 0.66 1.35 0.87 0.73
Arizona Bank & Trust 0.93 0.81 0.58 0.97 0.47
Rocky Mountain Bank 1.17 0.98 0.99 1.42 1.22
Minnesota Bank & Trust 0.87 0.51 0.40 0.98 0.26
Summit Bank & Trust     (0.02 )     (0.23 )     0.92       (1.46 )     (0.19 )
Net Interest Margin as a Percentage of Average Earning Assets
Dubuque Bank and Trust Company 3.54 % 3.48 % 3.55 % 3.69 % 3.63 %
New Mexico Bank & Trust 3.88 3.79 3.88 3.73 3.85
Wisconsin Bank & Trust 4.85 4.70 4.44 4.09 4.24
Morrill & Janes Bank and Trust Company 3.46 3.54 3.35 3.35 3.51
Illinois Bank & Trust (1) 3.61 3.58 3.69 3.61 3.43
Arizona Bank & Trust 4.13 4.10 4.17 4.28 4.23
Rocky Mountain Bank 4.34 4.30 4.31 4.74 4.44
Minnesota Bank & Trust 3.68 3.71 3.95 4.02 3.84
Summit Bank & Trust     3.56       3.64       4.16       3.74       3.81  
 
(1) Includes Galena State Bank & Trust Co. for the quarters ended September 30, 2014 and December 31, 2014.
 
 
HEARTLAND FINANCIAL USA, INC.
SELECTED FINANCIAL DATA - SUBSIDIARY BANKS (Unaudited)
DOLLARS IN THOUSANDS
    As of
      9/30/2015     6/30/2015     3/31/2015     12/31/2014     9/30/2014
Total Portfolio Loans and Leases                
Dubuque Bank and Trust Company $ 953,273 $ 945,574 $ 907,956 $ 952,114 $ 917,092
New Mexico Bank & Trust 777,433 658,543 635,843 635,402 609,170
Wisconsin Bank & Trust 844,557 876,321 865,323 502,310 509,364
Morrill & Janes Bank and Trust Company 527,217 520,978 475,295 440,899 445,100
Illinois Bank & Trust (1) 473,859 455,247 439,757 429,772 419,202
Arizona Bank & Trust 444,916 383,588 355,986 342,731 335,648
Rocky Mountain Bank 380,304 375,860 343,008 354,455 356,049
Minnesota Bank & Trust 128,700 127,172 114,477 110,920 104,061
Summit Bank & Trust     94,127       95,275       87,913       90,515       88,199  
Allowance For Loan and Lease Losses
Dubuque Bank and Trust Company $ 9,443 $ 9,223 $ 9,376 $ 9,403 $ 9,143
New Mexico Bank & Trust 7,156 6,913 6,670 6,863 6,688
Wisconsin Bank & Trust 6,344 6,397 5,148 5,216 5,327
Morrill & Janes Bank and Trust Company 5,121 4,748 3,200 2,305 2,077
Illinois Bank & Trust (1) 5,641 5,304 5,056 4,734 5,343
Arizona Bank & Trust 3,803 3,700 3,566 3,258 3,432
Rocky Mountain Bank 3,588 3,347 3,155 3,450 4,048
Minnesota Bank & Trust 1,292 1,267 1,170 1,116 1,052
Summit Bank & Trust     814       896       850       1,554       996  
Nonperforming Loans and Leases
Dubuque Bank and Trust Company $ 7,918 $ 4,593 $ 4,056 $ 3,067 $ 6,151
New Mexico Bank & Trust 7,196 2,985 4,386 6,416 5,550
Wisconsin Bank & Trust 7,524 9,530 8,857 2,967 3,335
Morrill & Janes Bank and Trust Company 963 733 406 380 519
Illinois Bank & Trust (1) 4,827 5,132 5,499 5,939 7,611
Arizona Bank & Trust 1,867 1,003 1,009 2,156 2,732
Rocky Mountain Bank 2,288 1,443 2,111 1,954 3,008
Minnesota Bank & Trust
Summit Bank & Trust     622       630       40       1,076       583  
Allowance As a Percent of Total Loans and Leases
Dubuque Bank and Trust Company 0.99 % 0.98 % 1.03 % 0.99 % 1.00 %
New Mexico Bank & Trust 0.92 1.05 1.05 1.08 1.10
Wisconsin Bank & Trust 0.75 0.73 0.59 1.04 1.05
Morrill & Janes Bank and Trust Company 0.97 0.91 0.67 0.52 0.47
Illinois Bank & Trust (1) 1.19 1.17 1.15 1.10 1.27
Arizona Bank & Trust 0.85 0.96 1.00 0.95 1.02
Rocky Mountain Bank 0.94 0.89 0.92 0.97 1.14
Minnesota Bank & Trust 1.00 1.00 1.02 1.01 1.01
Summit Bank & Trust     0.86       0.94       0.97       1.72       1.13  
 
(1) Includes Galena State Bank & Trust Co. for the quarters ended September 30, 2014 and December 31, 2014.

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