Highlights
  • Quarterly net income available to common stockholders of $20.2 million, a 40% increase from third quarter of prior year
  • Diluted earnings per common share of $0.81, a 17% increase from third quarter of prior year
  • Net interest margin of 3.97%, fully taxable equivalent (non-GAAP) (1) of 4.14%
  • Return on average common equity of 11.64%
  • Return on average tangible common equity (non-GAAP) (2) of 14.93%
  • Total demand deposits increase $88.8 million or 4% since June 30, 2016
  Quarter Ended September 30,   Nine Months Ended September 30,
  2016   2015   2016   2015
Net income (in millions) $ 20.2     $ 14.6     $ 61.2     $ 45.5  
Net income available to common stockholders (in millions) 20.2     14.4     61.0     44.8  
Diluted earnings per common share 0.81     0.69     2.48     2.16  
               
Return on average assets 0.98 %   0.85 %   1.00 %   0.91 %
Return on average common equity 11.64     11.40     12.28     12.38  
Return on average tangible common equity (non-GAAP) (2) 14.93     13.22     15.87     14.31  
Net interest margin 3.97     3.85     3.98     3.80  
Net interest margin, fully taxable equivalent (non-GAAP) (1) 4.14     4.01     4.15     3.96  

"Heartland reported another excellent quarter with net income available to common stockholders of $20.2 million, a 40 percent increase over the previous year's quarter. Among several areas of strength, we attribute our results to a very solid net interest margin of 4.14 percent for the quarter. "                      Lynn B. Fuller, chairman and chief executive officer, Heartland Financial USA, Inc.

(1) Refer to the "Reconciliation of Annualized Net Interest Margin, Fully Taxable Equivalent (non-GAAP)" table included in this earnings release. (2) Refer to the "Reconciliation of Return on Average Common Tangible Equity (non-GAAP)" table included in this earnings release.

DUBUQUE, Iowa, Oct. 31, 2016 (GLOBE NEWSWIRE) -- Heartland Financial USA, Inc. (NASDAQ:HTLF) today reported net income available to common stockholders of $20.2 million, or $0.81 per diluted common share, for the quarter ended September 30, 2016, compared to $14.4 million, or $0.69 per diluted common share, for the third quarter of 2015. Return on average common equity was 11.64% and return on average assets was 0.98% for the third quarter of 2016, compared to 11.40% and 0.85%, respectively, for the same quarter in 2015.

Net income available to common stockholders for the first nine months of 2016 was $61.0 million, or $2.48 per diluted common share, compared to $44.8 million, or $2.16 per diluted common share, for the first nine months of 2015. Return on average common equity was 12.28% and return on average assets was 1.00% for the first nine months of 2016, compared to 12.38% and 0.91%, respectively, for the same period in 2015.

Commenting on Heartland's 2016 third quarter results, Lynn B. Fuller, Heartland's chairman and chief executive officer said, "Heartland reported another excellent quarter with net income available to common stockholders of $20.2 million, a 40 percent increase over the previous year's quarter. Among several areas of strength, we attribute our results to a very solid net interest margin of 4.14 percent for the quarter."

Fully Taxable Equivalent Net Interest Margin Remains Above 4.00%

Net interest margin, expressed as a percentage of average earning assets, was 3.97% (4.14% on a fully taxable equivalent basis) during the third quarter of 2016, compared to 3.95% (4.12% on a fully taxable equivalent basis) during the second quarter of 2016 and 3.85% (4.01% on a fully taxable equivalent basis) during the third quarter of 2015.

Fuller said, "Net interest margin widened to 4.14 percent for the quarter and stands at 4.15 percent year-to-date. Yields on loans and securities increased while funding costs decreased for the quarter and year-to-date."

Interest income for the third quarter of 2016 was $81.7 million, an increase of $14.4 million or 21%, compared to the $67.3 million recorded in the third quarter of 2015. The taxable equivalent adjustment for income taxes saved on the interest earned on nontaxable securities and loans was $3.2 million for the third quarter of 2016 and $2.6 million for the third quarter of 2015. With these adjustments, interest income on a tax-equivalent basis was $84.9 million for the third quarter of 2016, an increase of $15.1 million or 22%, compared to $69.9 million for the third quarter of 2015. The increase in interest income in the third quarter of 2016, as compared to the third quarter of 2015, was primarily due to an increase in average earning assets, which totaled $7.38 billion during the third quarter of 2016 compared to $6.16 billion during the third quarter of 2015, a $1.22 billion or 20% increase.  A majority of this growth was attributable to the acquisition of Premier Valley Bank completed on November 30, 2015, and acquisition of CIC Bancshares, Inc. completed on February 5, 2016.

Interest expense for the third quarter of 2016 was $8.0 million, an increase of $462,000 or 6% from $7.5 million in the third quarter of 2015. Average interest bearing liabilities increased $733.1 million or 16% for the quarter ended September 30, 2016, from $4.49 billion in the same quarter in 2015, while the average interest rate paid on Heartland's interest bearing deposits and borrowings declined 6 basis points from 0.67% in the third quarter of 2015 to 0.61% in the third quarter of 2016. The average interest rate paid on savings deposits was 0.22% during both the third quarter of 2016 and the third quarter of 2015, and the average interest rate paid on time deposits was 0.79% during the third quarter of 2016 compared to 0.91% during the third quarter of 2015.

Net interest income increased $14.0 million or 23% to $73.7 million in the third quarter of 2016 from the $59.7 million recorded in the third quarter of 2015. After the tax-equivalent adjustment discussed above, net interest income on a tax-equivalent basis totaled $76.9 million during the third quarter of 2016, an increase of $14.6 million or 23% from the $62.3 million recorded during the third quarter of 2015.

Noninterest Income and Noninterest Expenses Increase From Same Quarter Last Year

Noninterest income totaled $28.5 million during the third quarter of 2016 compared to $25.0 million during the third quarter of 2015, an increase of $3.5 million or 14%. Service charges and fees totaled $8.3 million during the third quarter of 2016 compared to $6.4 million during the third quarter of 2015, an increase of $1.9 million or 30%. This increase was primarily attributable to a larger demand deposit customer base, a portion of which is attributable to the acquisitions completed during the last quarter of 2015 and first quarter of 2016. Gains on sale of loans held for sale totaled $11.5 million during the third quarter of 2016 compared to $9.8 million during the third quarter of 2015, an increase of $1.7 million or 17%.

For the third quarter of 2016, noninterest expenses totaled $68.4 million compared to $62.0 million during the third quarter of 2015, an increase of $6.4 million or 10%. The category with the most significant increase was salaries and employee benefits, which increased $3.7 million or 10%. Other categories experiencing increases, primarily attributable to the recent acquisitions, were occupancy, furniture and equipment, professional fees and intangible assets amortization.

Fuller stated, "I am also pleased to announce significant progress toward lowering Heartland's efficiency ratio, which dropped to 63.9 percent for the quarter, meeting our objective to reach 65 percent by year-end 2016."

Heartland's effective tax rate was 29.02% for the third quarter of 2016 compared to 25.32% for the third quarter of 2015. Included in Heartland's income taxes for the third quarter of 2015 were federal historic rehabilitation tax credits totaling $1.1 million associated with Heartland's ownership interest in a qualifying real estate project. Federal low-income housing tax credits included in the determination of Heartland's income taxes totaled $304,000 during the third quarter of 2016 compared to $145,000 during the third quarter of 2015. 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 21.01% during the third quarter of 2016 compared to 24.61% during the third quarter of 2015.

Loans and Deposits Increase Since Year-End Due to First Quarter Acquisition

Total assets were $8.20 billion at September 30, 2016, an increase of $507.5 million or 7% from $7.69 billion at year-end 2015. Included in this growth, at fair value, were $772.6 million of assets acquired in the CIC Bancshares, Inc. transaction. Securities represented 24% of total assets at both September 30, 2016, and December 31, 2015.

Total loans held to maturity were $5.44 billion at September 30, 2016, compared to $5.00 billion at year-end 2015, an increase of $437.2 million or 9%. This increase includes $581.5 million of total loans held to maturity, at fair value, acquired in the CIC Bancshares, Inc. transaction. Exclusive of this transaction, total loans held to maturity decreased $43.5 million during the third quarter of 2016, $20.7 million during the second quarter of 2016 and $80.0 million during the first quarter of 2016.

Total deposits were $6.91 billion as of September 30, 2016, compared to $6.41 billion at year-end 2015, an increase of $506.9 million or 8%. This increase included $648.1 million of deposits, at fair value, acquired in the CIC Bancshares, Inc. acquisition. Exclusive of this transaction, total deposits increased $75.1 million during the third quarter of 2016, decreased $86.8 million during the second quarter of 2016 and decreased $129.6 million during the first quarter of 2016. Demand deposits totaled $2.24 billion at September 30, 2016, an increase of $324.6 million or 17% from $1.91 billion at year-end 2015, with $164.3 million of the increase attributable to the CIC Bancshares, Inc. transaction. Exclusive of this transaction, demand deposits increased $88.8 million during the third quarter of 2016, $70.4 million during the second quarter of 2016 and $1.1 million during the first quarter of 2016.

Fuller commented, "We continue to emphasize growth of non-time deposits and are very pleased with the 4 percent growth quarter over quarter in non-interest demand deposits. These now comprise 33 percent of the deposit mix."

Nonperforming Assets Increase Since Year-End

Nonperforming assets were $69.5 million or 0.85% of total assets at September 30, 2016, compared to $51.7 million or 0.67% of total assets at December 31, 2015. Exclusive of $3.5 million of nonperforming assets, at fair value, acquired in the CIC Bancshares, Inc. transaction, nonperforming assets increased $14.3 million or 28% since year-end 2015. Nonperforming loans were $57.9 million or 1.06% of total loans at September 30, 2016, compared to $39.7 million or 0.79% of total loans at December 31, 2015. Contributing to the year-to-date increase in nonperforming loans during 2016 was a $9.8 million agribusiness relationship at Dubuque Bank and Trust Company which is in the process of collection. Based upon a current valuation of the collateral securing this loan relationship, no loss is anticipated on this credit.

The allowance for loan losses at September 30, 2016, was 1.00% of loans and 94.39% of nonperforming loans, compared to 0.97% of loans and 122.77% of nonperforming loans at December 31, 2015. The provision for loan losses was $5.3 million for the third quarter of 2016 compared to $3.2 million for the third quarter of 2015. A contributing factor to the 2016 third quarter provision for loan losses was a $946,000 allowance for impairment recorded on two agricultural loans at New Mexico Bank & Trust classified as impaired during the quarter. Also affecting the provision for loan losses during the third quarter of 2016 were higher charge-offs at Citizens Finance Co., Heartland's consumer finance company.

Conference Call Details

Heartland 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 30, 2017, by logging on to www.htlf.com. 

About Heartland Financial USA, Inc.

Heartland Financial USA, Inc. is a diversified financial services company with assets exceeding $8 billion. The company provides banking, mortgage, private client, investment, insurance and consumer finance services to individuals and businesses. Heartland currently has 108 banking locations serving 85 communities in Iowa, Illinois, Wisconsin, New Mexico, Arizona, Montana, Colorado, Minnesota, Kansas, Missouri, Texas and California. Additional information about Heartland Financial USA, Inc. is available at www.htlf.com

Safe Harbor Statement

This 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.

-FINANCIAL TABLES FOLLOW-

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
  For the Quarter Ended September 30,   For the Nine Months Ended September 30, 2016
  2016   2015   2016   2015
Interest Income              
Interest and fees on loans $ 70,046     $ 58,328     $ 208,280     $ 167,201  
Interest on securities:              
Taxable 7,917     5,858     24,604     19,729  
Nontaxable 3,717     3,077     10,793     8,867  
Interest on federal funds sold 1     1     12     3  
Interest on deposits in other financial institutions 6     4     13     11  
Total Interest Income 81,687     67,268     243,702     195,811  
Interest Expense              
Interest on deposits 4,001     3,767     12,195     11,758  
Interest on short-term borrowings 235     228     1,083     638  
Interest on other borrowings 3,770     3,549     10,918     12,117  
Total Interest Expense 8,006     7,544     24,196     24,513  
Net Interest Income 73,681     59,724     219,506     171,298  
Provision for loan losses 5,328     3,181     9,513     10,526  
Net Interest Income After Provision for Loan Losses 68,353     56,543     209,993     160,772  
Noninterest Income              
Service charges and fees 8,278     6,350     23,462     17,654  
Loan servicing income 873     1,368     3,433     3,572  
Trust fees 3,689     3,507     11,127     11,051  
Brokerage and insurance commissions 1,006     869     2,914     2,872  
Securities gains, net 1,584     1,767     9,732     9,230  
Gains on sale of loans held for sale 11,459     9,823     33,794     38,164  
Valuation adjustment on commercial servicing rights 5         (41 )    
Income on bank owned life insurance 620     372     1,733     1,355  
Other noninterest income 1,028     924     2,992     2,406  
Total Noninterest Income 28,542     24,980     89,146     86,304  
Noninterest Expense              
Salaries and employee benefits 40,733     37,033     124,432     110,522  
Occupancy 5,099     4,307     15,322     12,594  
Furniture and equipment 2,746     2,121     7,301     6,403  
Professional fees 5,985     5,251     20,481     16,544  
FDIC insurance assessments 1,180     1,018     3,468     2,873  
Advertising 1,339     1,327     4,174     3,841  
Intangible assets amortization 1,291     734     4,483     2,080  
Other real estate and loan collection expenses 640     496     1,871     1,714  
(Gain)/loss on sales/valuations of assets, net 794     721     1,064     2,583  
Other noninterest expenses 8,620     8,988     27,160     25,938  
Total Noninterest Expense 68,427     61,996     209,756     185,092  
Income Before Income Taxes 28,468     19,527     89,383     61,984  
Income taxes 8,260     4,945     28,196     16,533  
Net Income 20,208     14,582     61,187     45,451  
Preferred dividends (53 )   (205 )   (273 )   (613 )
Interest expense on convertible preferred debt 17         48      
Net Income Available to Common Stockholders $ 20,172     $ 14,377     $ 60,962     $ 44,838  
Earnings per common share-diluted $ 0.81     $ 0.69     $ 2.48     $ 2.16  
Weighted average shares outstanding-diluted 24,922,946     20,893,312     24,580,897     20,751,664  

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
  For the Quarter Ended
  9/30/2016   6/30/2016   3/31/2016   12/31/2015   9/30/2015
Interest Income                  
Interest and fees on loans $ 70,046     $ 69,809     $ 68,425     $ 59,905     $ 58,328  
Interest on securities:                  
Taxable 7,917     7,952     8,735     6,917     5,858  
Nontaxable 3,717     3,566     3,510     3,311     3,077  
Interest on federal funds sold 1     1     10     21     1  
Interest on deposits in other financial institutions 6     3     4     3     4  
Total Interest Income 81,687     81,331     80,684     70,157     67,268  
Interest Expense                  
Interest on deposits 4,001     4,021     4,173     3,772     3,767  
Interest on short-term borrowings 235     519     329     200     228  
Interest on other borrowings 3,770     3,673     3,475     3,485     3,549  
Total Interest Expense 8,006     8,213     7,977     7,457     7,544  
Net Interest Income 73,681     73,118     72,707     62,700     59,724  
Provision for loan losses 5,328     2,118     2,067     2,171     3,181  
Net Interest Income After Provision for Loan Losses 68,353     71,000     70,640     60,529     56,543  
Noninterest Income                  
Service charges and fees 8,278     8,022     7,162     6,654     6,350  
Loan servicing income 873     1,292     1,268     1,704     1,368  
Trust fees 3,689     3,625     3,813     3,230     3,507  
Brokerage and insurance commissions 1,006     886     1,022     917     869  
Securities gains, net 1,584     4,622     3,526     3,913     1,767  
Impairment loss on securities             (769 )    
Gains on sale of loans held for sale 11,459     11,270     11,065     7,085     9,823  
Valuation adjustment on commercial servicing rights 5     (46 )            
Income on bank owned life insurance 620     591     522     644     372  
Other noninterest income 1,028     764     1,200     1,003     924  
Total Noninterest Income 28,542     31,026     29,578     24,381     24,980  
Noninterest Expense                  
Salaries and employee benefits 40,733     41,985     41,714     33,583     37,033  
Occupancy 5,099     5,220     5,003     4,334     4,307  
Furniture and equipment 2,746     2,442     2,113     2,344     2,121  
Professional fees 5,985     7,486     7,010     6,503     5,251  
FDIC insurance assessments 1,180     1,120     1,168     886     1,018  
Advertising 1,339     1,551     1,284     1,624     1,327  
Intangible assets amortization 1,291     1,297     1,895     898     734  
Other real estate and loan collection expenses 640     659     572     723     496  
(Gain)/loss on sales/valuations of assets, net 794     (43 )   313     4,238     721  
Other noninterest expenses 8,620     9,303     9,237     10,821     8,988  
Total Noninterest Expense 68,427     71,020     70,309     65,954     61,996  
Income Before Income Taxes 28,468     31,006     29,909     18,956     19,527  
Income taxes 8,260     10,036     9,900     4,365     4,945  
Net Income 20,208     20,970     20,009     14,591     14,582  
Preferred dividends (53 )   (52 )   (168 )   (204 )   (205 )
Interest expense on convertible preferred debt 17     31              
Net Income Available to Common Stockholders $ 20,172     $ 20,949     $ 19,841     $ 14,387     $ 14,377  
Earnings per common share-diluted $ 0.81     $ 0.84     $ 0.82     $ 0.67     $ 0.69  
Weighted average shares outstanding-diluted 24,922,946     24,974,995     24,117,384     21,491,699     20,893,312  

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
  As Of
  9/30/2016   6/30/2016   3/31/2016   12/31/2015   9/30/2015
Assets                  
Cash and due from banks $ 196,234     $ 222,718     $ 124,060     $ 237,841     $ 76,954  
Federal funds sold and other short-term investments 5,855     7,232     9,168     20,958     14,151  
Cash and cash equivalents 202,089     229,950     133,228     258,799     91,105  
Time deposits in other financial institutions 2,105     2,105     2,355     2,355     2,355  
Securities:                  
Available for sale, at fair value 1,655,696     1,566,592     1,690,516     1,578,434     1,261,687  
Held to maturity, at cost 265,302     270,423     271,300     279,117     282,200  
Other investments, at cost 22,082     22,680     22,325     21,443     19,292  
Loans held for sale 78,317     82,538     76,565     74,783     102,569  
Loans:                  
Held to maturity 5,438,715     5,482,258     5,503,005     5,001,486     4,642,523  
 Allowance for loan losses (54,653 )   (51,756 )   (49,738 )   (48,685 )   (47,105 )
Loans, net 5,384,062     5,430,502     5,453,267     4,952,801     4,595,418  
Premises, furniture and equipment, net 165,841     168,701     164,788     150,148     147,486  
Goodwill 127,699     127,699     127,699     97,852     56,828  
Core deposit intangibles, net 23,922     25,213     26,510     22,019     14,937  
Servicing rights, net 35,906     35,654     34,910     34,926     33,758  
Cash surrender value on life insurance 112,060     111,425     110,834     110,297     99,564  
Other real estate, net 10,740     11,003     11,338     11,524     17,041  
Other assets 116,394     119,916     128,144     100,256     81,644  
Total Assets $ 8,202,215     $ 8,204,401     $ 8,253,779     $ 7,694,754     $ 6,805,884  
Liabilities and Equity                  
Liabilities                  
Deposits:                  
 Demand $ 2,238,736     $ 2,149,911     $ 2,079,521     $ 1,914,141     $ 1,632,005  
 Savings 3,753,300     3,691,791     3,702,431     3,367,479     2,936,611  
 Time 920,657     995,870     1,142,368     1,124,203     938,621  
Total deposits 6,912,693     6,837,572     6,924,320     6,405,823     5,507,237  
Short-term borrowings 214,105     303,707     325,741     293,898     335,845  
Other borrowings 294,493     296,895     265,760     263,214     302,086  
Accrued expenses and other liabilities 76,536     78,264     68,415     68,646     69,707  
Total Liabilities 7,497,827     7,516,438     7,584,236     7,031,581     6,214,875  
Stockholders' Equity                  
Preferred equity 1,357     3,777     3,777     81,698     81,698  
Common stock 24,683     24,544     24,520     22,436     20,640  
Capital surplus 279,316     274,682     273,310     216,436     149,613  
Retained earnings 402,179     384,479     366,014     348,630     337,421  
Accumulated other comprehensive income (loss) (3,079 )   513     1,924     (6,027 )   1,731  
Treasury stock at cost (68 )   (32 )   (2 )       (94 )
Total Equity 704,388     687,963     669,543     663,173     591,009  
Total Liabilities and Equity $ 8,202,215     $ 8,204,401     $ 8,253,779     $ 7,694,754     $ 6,805,884  

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
  For the Quarter Ended September 30,   For the Nine Months Ended September 30,
  2016   2015   2016   2015
Average Balances              
Assets $ 8,172,683     $ 6,726,196     $ 8,136,492     $ 6,603,085  
Loans, net of unearned 5,538,088     4,654,179     5,493,187     4,457,715  
Deposits 6,839,334     5,423,418     6,775,103     5,296,771  
Earning assets 7,382,860     6,161,495     7,368,856     6,030,612  
Interest bearing liabilities 5,224,172     4,491,089     5,286,708     4,447,165  
Common stockholders' equity 689,637     500,399     663,050     484,418  
Total stockholders' equity 692,404     582,097     687,312     566,116  
Tangible common stockholders' equity (1) 537,375     431,304     513,031     419,059  
               
Key Performance Ratios              
Annualized return on average assets 0.98 %   0.85 %   1.00 %   0.91 %
Annualized return on average common equity 11.64 %   11.40 %   12.28 %   12.38 %
Annualized return on average common tangible equity (2) 14.93 %   13.22 %   15.87 %   14.31 %
Annualized ratio of net charge-offs to average loans 0.17 %   0.14 %   0.09 %   0.15 %
Annualized net interest margin, fully taxable equivalent (3) 4.14 %   4.01 %   4.15 %   3.96 %
Efficiency ratio, fully taxable equivalent (4) 63.88 %   69.85 %   66.23 %   69.37 %
               
Reconciliation of Return on Average Common Tangible Equity (non-GAAP) (5)              
Net income available to common shareholders (GAAP) $ 20,172     $ 14,377     $ 60,962     $ 44,838  
               
Average common stockholders' equity (GAAP) $ 689,637     $ 500,399     $ 663,050     $ 484,418  
Less average goodwill 127,699     55,073     125,061     52,251  
Less average other intangibles, net 24,563     14,022     24,958     13,108  
Average common tangible equity (non-GAAP) $ 537,375     $ 431,304     $ 513,031     $ 419,059  
Annualized return on average common equity (GAAP) 11.64 %   11.40 %   12.28 %   12.38 %
Annualized return on average common tangible equity (non-GAAP) 14.93 %   13.22 %   15.87 %   14.31 %
               
Reconciliation of Annualized Net Interest Margin, Fully Taxable Equivalent (non-GAAP) (6)              
Net Interest Income (GAAP) $ 73,681     $ 59,724     $ 219,506     $ 171,298  
Plus taxable equivalent adjustment (7) 3,221     2,588     9,408     7,389  
Net interest income - taxable equivalent (non-GAAP) $ 76,902     $ 62,312     $ 228,914     $ 178,687  
               
Average earning assets $ 7,382,860     $ 6,161,495     $ 7,368,856     $ 6,030,612  
               
Annualized net interest margin (GAAP) 3.97 %   3.85 %   3.98 %   3.80 %
Annualized net interest margin, fully taxable equivalent (non-GAAP) 4.14 %   4.01 %   4.15 %   3.96 %
               
(1) Calculated as common stockholders' equity less goodwill and core deposit intangibles, net.
(2) Refer to the "Reconciliation of Return on Average Common Tangible Equity (non-GAAP)" table.
(3) Refer to the "Reconciliation of Annualized Net Interest Margin, Fully Taxable Equivalent (non-GAAP)" table.
(4) Refer to the "Reconciliation of Non-GAAP Measure-Efficiency Ratio" table that follows for details of this non-GAAP measure.
(5) Return on average common tangible equity is net income available to common stockholders divided by average common stockholders' equity less goodwill and core deposit intangibles, net. This financial measure is included as it is considered to be a critical metric to analyze and evaluate financial condition and capital strength. This measure should not be considered a substitute for operating results determined in accordance with GAAP.
(6) Annualized net interest margin, fully taxable equivalent is a non-GAAP measure, which 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. This measure should not be considered a substitute for operating results determined in accordance with GAAP.
(7) Computed on a taxable equivalent basis using an effective tax rate of 35%.

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
  For the Quarter Ended
  9/30/2016   6/30/2016   3/31/2016   12/31/2015   9/30/2015
Average Balances                  
Assets $ 8,172,683     $ 8,211,326     $ 8,025,070     $ 7,241,104     $ 6,726,196  
Loans, net of unearned 5,538,088     5,582,878     5,358,102     4,827,844     4,654,179  
Deposits 6,839,334     6,806,259     6,679,010     5,938,905     5,423,418  
Earning assets 7,382,860     7,446,849     7,276,703     6,512,565     6,161,495  
Interest bearing liabilities 5,224,172     5,363,477     5,273,164     4,781,797     4,491,089  
Common stockholders' equity 689,637     669,930     629,294     533,845     500,399  
Total stockholders' equity 692,404     673,707     695,771     615,543     582,097  
Tangible common stockholders' equity (1) 537,375     516,347     485,108     446,370     431,304  
                   
Key Performance Ratios                  
Annualized return on average assets 0.98 %   1.03 %   0.99 %   0.79 %   0.85 %
Annualized return on average common equity 11.64 %   12.58 %   12.68 %   10.69 %   11.40 %
Annualized return on average common tangible equity (2) 14.93 %   16.32 %   16.45 %   12.79 %   13.22 %
Annualized ratio of net charge-offs to average loans 0.17 %   0.01 %   0.08 %   0.05 %   0.14 %
Annualized net interest margin, fully taxable equivalent (3) 4.14 %   4.12 %   4.19 %   3.99 %   4.01 %
Efficiency ratio, fully taxable equivalent (4) 63.88 %   67.95 %   66.90 %   68.53 %   69.85 %
                   
Reconciliation of Return on Average Common Tangible Equity (non-GAAP) (5)                  
Net income available to common shareholders (GAAP) $ 20,172     $ 20,949     $ 19,841     $ 14,387     $ 14,377  
                   
Average common stockholders' equity (GAAP) $ 689,637     $ 669,930     $ 629,294     $ 533,845     $ 500,399  
Less average goodwill 127,699     127,699     119,750     70,222     55,073  
Less average other intangibles, net 24,563     25,884     24,436     17,253     14,022  
Average common tangible equity (non-GAAP) $ 537,375     $ 516,347     $ 485,108     $ 446,370     $ 431,304  
Annualized return on average common equity (GAAP) 11.64 %   12.58 %   12.68 %   10.69 %   11.40 %
Annualized return on average common tangible equity (non-GAAP) 14.93 %   16.32 %   16.45 %   12.79 %   13.22 %
                   
Reconciliation of Annualized Net Interest Margin, Fully Taxable Equivalent (non-GAAP) (6)                  
Net Interest Income (GAAP) $ 73,681     $ 73,118     $ 72,707     $ 62,700     $ 59,724  
Plus taxable equivalent adjustment (7) 3,221     3,146     3,041     2,827     2,588  
Net interest income, fully taxable equivalent (non-GAAP) $ 76,902     $ 76,264     $ 75,748     $ 65,527     $ 62,312  
                   
Average earning assets $ 7,382,860     $ 7,446,849     $ 7,276,703     $ 6,512,565     $ 6,161,495  
                   
Annualized net interest margin (GAAP) 3.97 %   3.95 %   4.02 %   3.82 %   3.85 %
Annualized net interest margin, fully taxable equivalent (non-GAAP) 4.14 %   4.12 %   4.19 %   3.99 %   4.01 %
 
(1) Calculated as common stockholders' equity less goodwill and core deposit intangibles, net.
(2) Refer to the "Reconciliation of Return on Average Common Tangible Equity (non-GAAP)" table.
(3) Refer to the "Reconciliation of Annualized Net Interest Margin, Fully Taxable Equivalent (non-GAAP)" table.
(4) Refer to the "Reconciliation of Non-GAAP Measure-Efficiency Ratio" table that follows for details of this non-GAAP measure.
(5) Return on average common tangible equity is net income available to common stockholders divided by average common stockholders' equity less goodwill and core deposit intangibles, net. This financial measure is included as it is considered to be a critical metric to analyze and evaluate financial condition and capital strength. This measure should not be considered a substitute for operating results determined in accordance with GAAP.
(6) Annualized net interest margin, fully taxable equivalent is a non-GAAP measure, which 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. This measure should not be considered a substitute for operating results determined in accordance with GAAP.
(7) Computed on a taxable equivalent basis using an effective tax rate of 35%.

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
  For the Quarter Ended September 30,   For the Nine Months Ended September 30,
Reconciliation of Non-GAAP Measure-Efficiency Ratio (1) 2016   2015   2016   2015
Net interest income $ 73,681     $ 59,724     $ 219,506     $ 171,298  
Taxable equivalent adjustment (2) 3,221     2,588     9,408     7,389  
Fully taxable equivalent net interest income 76,902     62,312     228,914     178,687  
Noninterest income 28,542     24,980     89,146     86,304  
Securities gains, net (1,584 )   (1,767 )   (9,732 )   (9,230 )
Adjusted income $ 103,860     $ 85,525     $ 308,328     $ 255,761  
               
Total noninterest expenses $ 68,427     $ 61,996     $ 209,756     $ 185,092  
Less:              
Intangible assets amortization 1,291     734     4,483     2,080  
Partnership investment in historic rehabilitation tax credits     805         2,995  
(Gain)/loss on sales/valuations of assets, net 794     721     1,064     2,583  
Adjusted noninterest expenses $ 66,342     $ 59,736     $ 204,209     $ 177,434  
               
Efficiency ratio, fully taxable equivalent 63.88 %   69.85 %   66.23 %   69.37 %
 
 
HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
Reconciliation of Non-GAAP Measure-Efficiency Ratio (1) For the Quarter Ended
9/30/2016   6/30/2016   3/31/2016   12/31/2015   9/30/2015
Net interest income $ 73,681     $ 73,118     $ 72,707     $ 62,700     $ 59,724  
Taxable equivalent adjustment (2) 3,221     3,146     3,041     2,827     2,588  
Fully taxable equivalent net interest income 76,902     76,264     75,748     65,527     62,312  
Noninterest income 28,542     31,026     29,578     24,381     24,980  
Securities gains, net (1,584 )   (4,622 )   (3,526 )   (3,913 )   (1,767 )
Impairment loss on securities             769      
Adjusted income $ 103,860     $ 102,668     $ 101,800     $ 86,764     $ 85,525  
                   
Total noninterest expenses $ 68,427     $ 71,020     $ 70,309     $ 65,954     $ 61,996  
Less:                  
Intangible assets amortization 1,291     1,297     1,895     898     734  
Partnership investment in historic rehabilitation tax credits             1,362     805  
(Gain)/loss on sales/valuation of assets, net 794     (43 )   313     4,238     721  
Adjusted noninterest expenses $ 66,342     $ 69,766     $ 68,101     $ 59,456     $ 59,736  
                   
Efficiency ratio, fully taxable equivalent 63.88 %   67.95 %   66.90 %   68.53 %   69.85 %
                   
(1) 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 taxable 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, as noted in the table. This measure should not be considered a substitute for operating results determined in accordance with GAAP.
(2) Computed on a tax equivalent basis using an effective tax rate of 35%.

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
  9/30/2016   6/30/2016   3/31/2016   12/31/2015   9/30/2015
Common Share Data                  
Book value per common share $ 28.48     $ 27.88     $ 27.15     $ 25.92     $ 24.68  
Tangible book value per common share (non-GAAP) (5) $ 22.34     $ 21.65     $ 20.86     $ 20.57     $ 21.20  
ASC 320 effect on book value per common share $ 0.03     $ 0.21     $ 0.23     $ (0.18 )   $ 0.22  
Common shares outstanding, net of treasury stock 24,681,380     24,543,376     24,519,928     22,435,693     20,637,321  
Tangible capital ratio (non-GAAP) (6) 6.85 %   6.60 %   6.32 %   6.09 %   6.50 %
                   
Reconciliation of Tangible Book Value Per Common Share (non-GAAP) (3)                  
Common stockholders' equity (GAAP) $ 703,031     $ 684,186     $ 665,766     $ 581,475     $ 509,311  
Less goodwill 127,699     127,699     127,699     97,852     56,828  
Less other intangible assets, net 23,922     25,213     26,510     22,019     14,937  
Tangible common stockholders' equity (non-GAAP) $ 551,410     $ 531,274     $ 511,557     $ 461,604     $ 437,546  
                   
Common shares outstanding, net of treasury stock 24,681,380     24,543,376     24,519,928     22,435,693     20,637,321  
Common stockholders' equity (book value) per share (GAAP) $ 28.48     $ 27.88     $ 27.15     $ 25.92     $ 24.68  
Tangible book value per common share (non-GAAP) $ 22.34     $ 21.65     $ 20.86     $ 20.57     $ 21.20  
                   
Reconciliation of Tangible Capital Ratio (non-GAAP) (4)                  
Total assets (GAAP) $ 8,202,215     $ 8,204,401     $ 8,253,779     $ 7,694,754     $ 6,805,884  
Less goodwill 127,699     127,699     127,699     97,852     56,828  
Less other intangible assets, net 23,922     25,213     26,510     22,019     14,937  
Total tangible assets (non-GAAP) $ 8,050,594     $ 8,051,489     $ 8,099,570     $ 7,574,883     $ 6,734,119  
Tangible capital ratio (non-GAAP) 6.85 %   6.60 %   6.32 %   6.09 %   6.50 %
                   
Loan Data                  
Loans held to maturity:                  
Commercial and commercial real estate $ 3,900,612     $ 3,930,879     $ 3,951,839     $ 3,605,574     $ 3,303,098  
Residential mortgage 625,965     644,267     666,184     539,555     491,667  
Agricultural and agricultural real estate 489,387     480,883     471,271     471,870     469,381  
Consumer 425,582     428,730     417,114     386,867     379,903  
Unearned discount and deferred loan fees (2,831 )   (2,501 )   (3,403 )   (2,380 )   (1,526 )
Total loans held to maturity $ 5,438,715     $ 5,482,258     $ 5,503,005     $ 5,001,486     $ 4,642,523  
                   
Other Selected Trend Information                  
Effective tax rate 29.02 %   32.37 %   33.10 %   23.03 %   25.32 %
Full time equivalent employees 1,846     1,888     1,907     1,799     1,736  
Total Residential Mortgage Loan Applications $ 445,107     $ 440,907     $ 406,999     $ 307,163     $ 443,294  
Residential Mortgage Loans Originated $ 324,337     $ 324,633     $ 238,266     $ 258,939     $ 370,956  
Residential Mortgage Loans Sold $ 315,917     $ 302,448     $ 220,381     $ 260,189     $ 360,172  
Residential Mortgage Loan Servicing Portfolio $ 4,259,459     $ 4,203,429     $ 4,112,519     $ 4,057,861     $ 3,963,677  
                   
(1) Refer to the "Reconciliation of Tangible Book Value Per Common Share (non-GAAP)" table.
(2) Refer to the "Reconciliation of Tangible Capital Ratio (non-GAAP)" table.
(3) Tangible book value per common share is total common stockholders' equity less goodwill and intangible assets, net 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. This measure should not be considered a substitute for operating results determined in accordance with GAAP.
(4) The tangible capital ratio is total common stockholders' equity less goodwill and intangible assets, net divided by total assets less goodwill and intangible assets, net. 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. 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
  As of and for the Quarter Ended
  9/30/2016   6/30/2016   3/31/2016   12/31/2015   9/30/2015
Allowance for Loan Losses                  
Balance, beginning of period $ 51,756     $ 49,738     $ 48,685     $ 47,105     $ 45,614  
Provision for loan losses 5,328     2,118     2,067     2,171     3,181  
Charge-offs (3,283 )   (2,951 )   (1,605 )   (1,837 )   (2,439 )
Recoveries 852     2,851     591     1,246     749  
Balance, end of period $ 54,653     $ 51,756     $ 49,738     $ 48,685     $ 47,105  
                   
Asset Quality                  
Nonaccrual loans $ 57,799     $ 57,053     $ 47,750     $ 39,655     $ 32,577  
Loans past due ninety days or more as to interest or principal payments 105         639         1,181  
Other real estate owned 10,740     11,003     11,338     11,524     17,041  
Other repossessed assets 821     564     426     485     626  
Total nonperforming assets $ 69,465     $ 68,620     $ 60,153     $ 51,664     $ 51,425  
                   
Performing troubled debt restructured loans $ 10,281     $ 9,923     $ 10,711     $ 10,968     $ 10,154  
                   
Nonperforming Assets Activity                  
Balance, beginning of period $ 68,620     $ 60,153     $ 51,664     $ 51,425     $ 44,237  
Net loan charge offs (2,431 )   (100 )   (1,014 )   (591 )   (1,690 )
New nonperforming loans 10,884     19,994     12,171     9,686     7,996  
Acquired nonperforming assets         3,516     4,956     5,328  
Reduction of nonperforming loans (1) (6,983 )   (10,313 )   (3,563 )   (6,768 )   (2,758 )
OREO/Repossessed assets sales proceeds (343 )   (918 )   (2,411 )   (2,980 )   (1,074 )
OREO/Repossessed assets writedowns, net (521 )   (337 )   (182 )   (3,909 )   (756 )
Net activity at Citizens Finance Co. 239     141     (28 )   (155 )   142  
Balance, end of period $ 69,465     $ 68,620     $ 60,153     $ 51,664     $ 51,425  
 
Asset Quality Ratios                  
Ratio of nonperforming loans to total loans 1.06 %   1.04 %   0.88 %   0.79 %   0.73 %
Ratio of nonperforming assets to total assets 0.85 %   0.84 %   0.73 %   0.67 %   0.76 %
Annualized ratio of net loan charge-offs to average loans 0.17 %   0.01 %   0.08 %   0.05 %   0.14 %
Allowance for loan losses as a percent of loans 1.00 %   0.94 %   0.90 %   0.97 %   1.01 %
Allowance for loan losses as a percent of nonperforming loans 94.39 %   90.72 %   102.79 %   122.77 %   139.54 %
Loans delinquent 30-89 days as a percent of total loans 0.40 %   0.73 %   0.45 %   0.31 %   0.40 %
                   
(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
  September 30, 2016   September 30, 2015
  Average Balance   Interest   Rate   Average Balance   Interest   Rate
Earning Assets                      
Securities:                      
Taxable $ 1,415,446     $ 7,917     2.23 %   $ 1,192,259     $ 5,858     1.95 %
Nontaxable (1) 473,152     5,719     4.81     348,760     4,733     5.38  
Total securities 1,888,598     13,636     2.87     1,541,019     10,591     2.73  
Interest bearing deposits 7,026     6     0.34     11,567     4     0.14  
Federal funds sold 1,409     1     0.28     1,032     1     0.38  
Loans: (2)                      
Commercial and commercial real estate (1) 3,908,623     48,334     4.92     3,252,610     38,802     4.73  
Residential mortgage 717,374     7,248     4.02     570,117     5,848     4.07  
Agricultural and agricultural real estate (1) 486,008     5,719     4.68     461,144     5,525     4.75  
Consumer 426,083     8,256     7.71     370,308     7,384     7.91  
Fees on loans     1,708             1,701      
Less: allowance for loan losses (52,261 )           (46,302 )        
Net loans 5,485,827     71,265     5.17     4,607,877     59,260     5.10  
Total earning assets 7,382,860     84,908     4.58 %   6,161,495     69,856     4.50 %
Nonearning Assets 789,823             564,701          
Total Assets $ 8,172,683             $ 6,726,196          
Interest Bearing Liabilities                      
Savings $ 3,697,426     $ 2,066     0.22 %   $ 2,870,847     $ 1,565     0.22 %
Time, $100,000 and over 399,498     813     0.81     337,163     741     0.87  
Other time deposits 570,445     1,122     0.78     622,110     1,461     0.93  
Short-term borrowings 258,783     235     0.36     362,094     228     0.25  
Other borrowings 298,020     3,770     5.03     298,875     3,549     4.71  
Total interest bearing liabilities 5,224,172     8,006     0.61 %   4,491,089     7,544     0.67 %
Noninterest Bearing Liabilities                      
Noninterest bearing deposits 2,171,965             1,593,298          
Accrued interest and other liabilities 84,142             59,712          
Total noninterest bearing liabilities 2,256,107             1,653,010          
Stockholders' Equity 692,404             582,097          
Total Liabilities and Stockholders' Equity $ 8,172,683             $ 6,726,196          
Net interest income, fully taxable equivalent (non-GAAP) (1)     $ 76,902             $ 62,312      
Net interest spread (1)         3.97 %           3.83 %
Net interest income, fully taxable equivalent (non-GAAP) to total earning assets (3)         4.14 %           4.01 %
Interest bearing liabilities to earning assets 70.76 %           72.89 %        
                       
(1) Computed on a taxable equivalent basis using an effective tax rate of 35%
(2) Nonaccrual loans are included in the average loans outstanding.
(3) Annualized net interest margin, fully taxable equivalent is a non-GAAP measure, which 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. 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
  For the Nine Months Ended
  September 30, 2016   September 30, 2015
  Average Balance   Interest   Rate   Average Balance   Interest   Rate
Earning Assets                      
Securities:                      
Taxable $ 1,464,080     $ 24,604     2.24 %   $ 1,266,546     $ 19,729     2.08 %
Nontaxable (1) 440,275     16,605     5.04     335,104     13,641     5.44  
Total securities 1,904,355     41,209     2.89     1,601,650     33,370     2.79  
Interest bearing deposits 9,785     13     0.18     10,541     11     0.14  
Federal funds sold 12,509     12     0.13     4,562     3     0.09  
Loans: (2)                      
Commercial and commercial real estate (1) 3,840,060     141,977     4.94     3,133,525     112,343     4.79  
Residential mortgage 751,694     23,133     4.11     529,412     16,146     4.08  
Agricultural and agricultural real estate (1) 478,564     16,952     4.73     436,050     15,835     4.86  
Consumer 422,869     24,452     7.72     358,728     21,476     8.00  
Fees on loans     5,362             4,016      
Less: allowance for loan losses (50,980 )           (43,856 )        
Net loans 5,442,207     211,876     5.20     4,413,859     169,816     5.14  
Total earning assets 7,368,856     253,110     4.59 %   6,030,612     203,200     4.50 %
Nonearning Assets 767,636             572,473          
Total Assets $ 8,136,492             $ 6,603,085          
Interest Bearing Liabilities                      
Savings $ 3,651,370     $ 5,988     0.22 %   $ 2,851,506     $ 5,002     0.23 %
Time, $100,000 and over 439,609     2,417     0.73     343,369     2,373     0.92  
Other time deposits 599,745     3,790     0.84     570,446     4,383     1.03  
Short-term borrowings 314,367     1,083     0.46     343,537     638     0.25  
Other borrowings 281,617     10,918     5.18     338,307     12,117     4.79  
Total interest bearing liabilities 5,286,708     24,196     0.61 %   4,447,165     24,513     0.74 %
Noninterest Bearing Liabilities                      
Noninterest bearing deposits 2,084,379             1,531,450          
Accrued interest and other liabilities 78,093             58,354          
Total noninterest bearing liabilities 2,162,472             1,589,804          
Stockholders' Equity 687,312             566,116          
Total Liabilities and Stockholders' Equity $ 8,136,492             $ 6,603,085          
Net interest income, fully taxable equivalent (non-GAAP) (1)     $ 228,914             $ 178,687      
Net interest spread (1)         3.98 %           3.76 %
Net interest income, fully taxable equivalent (non-GAAP) to total earning assets (3)         4.15 %           3.96 %
Interest bearing liabilities to earning assets 71.74 %           73.74 %        
                       
(1) Computed on a taxable equivalent basis using an effective tax rate of 35%.
(2) Nonaccrual loans are included in the average loans outstanding.
(3) Annualized net interest margin, fully taxable equivalent is a non-GAAP measure, which 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. This measure should not be considered a substitute for operating results determined in accordance with GAAP.

HEARTLAND FINANCIAL USA, INC.
SELECTED FINANCIAL DATA - SUBSIDIARY BANKS (Unaudited)
DOLLARS IN THOUSANDS
  As of and For the Quarter Ended
  9/30/2016 6/30/2016 3/31/2016 12/31/2015 9/30/2015
Total Assets          
Dubuque Bank and Trust Company $ 1,448,796   $ 1,473,461   $ 1,498,771   $ 1,617,322   $ 1,431,767  
New Mexico Bank & Trust 1,318,203   1,321,113   1,304,886   1,336,004   1,282,784  
Wisconsin Bank & Trust 1,068,288   1,080,224   1,094,872   1,139,337   1,098,405  
Centennial Bank and Trust (1) 892,723   909,697   927,040   161,806   155,114  
Morrill & Janes Bank and Trust Company 862,767   843,069   872,274   902,918   845,067  
Illinois Bank & Trust 748,801   742,697   718,074   757,478   769,170  
Premier Valley Bank 635,620   629,423   751,137   765,451    
Arizona Bank & Trust 574,561   577,002   558,369   591,066   599,119  
Rocky Mountain Bank 481,346   473,583   479,010   491,522   501,093  
Minnesota Bank & Trust 238,745   230,004   220,955   214,303   188,633  
Total Portfolio Loans          
Dubuque Bank and Trust Company $ 906,347   $ 928,869   $ 941,683   $ 956,517   $ 953,273  
New Mexico Bank & Trust 917,679   870,109   815,739   794,744   777,433  
Wisconsin Bank & Trust 711,714   732,503   758,789   793,508   844,557  
Centennial Bank and Trust (1) 638,006   668,547   683,085   101,449   94,127  
Morrill & Janes Bank and Trust Company 538,666   522,518   536,738   539,198   527,217  
Illinois Bank & Trust 469,236   466,983   465,783   465,937   473,859  
Premier Valley Bank 354,610   376,275   376,840   383,929    
Arizona Bank & Trust 385,926   390,078   402,431   444,501   444,916  
Rocky Mountain Bank 357,346   362,475   364,189   370,440   380,304  
Minnesota Bank & Trust 139,581   144,009   137,412   134,137   128,700  
Total Deposits          
Dubuque Bank and Trust Company $ 1,182,947   $ 1,159,942   $ 1,144,470   $ 1,209,074   $ 1,120,999  
New Mexico Bank & Trust 1,101,550   1,062,410   1,066,076   1,085,052   1,047,358  
Wisconsin Bank & Trust 889,957   911,915   921,071   974,001   904,803  
Centennial Bank and Trust (1) 767,128   775,417   779,607   128,759   139,826  
Morrill & Janes Bank and Trust Company 676,176   696,073   698,365   713,589   650,123  
Illinois Bank & Trust 671,104   653,582   629,235   631,010   641,024  
Premier Valley Bank 520,814   514,522   635,188   647,022    
Arizona Bank & Trust 493,331   497,599   468,312   500,490   491,254  
Rocky Mountain Bank 420,581   405,888   409,787   417,426   428,234  
Minnesota Bank & Trust 214,651   207,228   200,343   194,373   163,291  
Net Income (Loss)          
Dubuque Bank and Trust Company $ 5,112   $ 4,475   $ 6,073   $ 3,587   $ 4,477  
New Mexico Bank & Trust 3,824   5,642   4,094   2,576   3,220  
Wisconsin Bank & Trust 3,368   3,399   3,379   2,443   3,886  
Centennial Bank and Trust (1) 925   256   824   62   (6 )
Morrill & Janes Bank and Trust Company 1,707   2,133   2,525   1,096   2,024  
Illinois Bank & Trust 2,179   2,397   2,027   574   1,877  
Premier Valley Bank 1,804   1,695   1,960   1,008    
Arizona Bank & Trust 2,034   2,121   1,841   968   1,254  
Rocky Mountain Bank 1,456   1,484   1,064   1,506   1,471  
Minnesota Bank & Trust 675   559   531   166   411  
           
(1) Formerly known as Summit Bank & Trust.
Bryan R. McKeagExecutive Vice PresidentChief Financial Officer(563) 589-1994bmckeag@htlf.com

Primary Logo