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Heartland Financial USA, Inc. Reports 2016 Second Quarter Results

Highlights

  • Record quarterly net income available to common stockholders of $20.9 million, a 40% increase from second quarter of prior year
  • Diluted earnings per common share of $0.84, a 17% increase from second quarter of prior year
  • Net interest margin of 3.95%, fully taxable equivalent (non-GAAP)(1) of 4.12%
  • Return on average common equity of 12.58%
  • Return on average tangible common equity (non-GAAP)(2) of 16.32%
  • Completed systems conversion of Centennial Bank in Denver, Colorado

Quarter Ended
June 30,
Six Months Ended
June 30,
2016 2015 2016 2015
Net income (in millions)$21.0 $15.2 $41.0 $30.9
Net income available to common stockholders (in millions)20.9 15.0 40.8 30.5
Diluted earnings per common share0.84 0.72 1.66 1.47
Return on average assets1.03% 0.91% 1.01% 0.94%
Return on average common equity12.58 12.26 12.63 12.90
Return on average tangible common equity (non-GAAP)(2)16.32 14.14 16.38 14.88
Net interest margin3.95 3.81 3.98 3.78
Net interest margin, fully taxable equivalent (non-GAAP)(1)4.12 3.97 4.15 3.93












"Heartland continued to set new records with a strong financial performance for the second quarter and first half of 2016. Net income of $20.9 million represents a 40% increase over earnings for the second quarter of 2015 while year-to-date 2016 net income of $40.8 million represents a 34% increase over the previous year."

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, July 25, 2016 (GLOBE NEWSWIRE) -- Heartland Financial USA, Inc. (NASDAQ:HTLF) today reported net income available to common stockholders of $20.9 million, or $0.84 per diluted common share, for the quarter ended June 30, 2016, compared to $15.0 million, or $0.72 per diluted common share, for the second quarter of 2015. Return on average common equity was 12.58% and return on average assets was 1.03% for the second quarter of 2016, compared to 12.26% and 0.91%, respectively, for the same quarter in 2015.

Net income available to common stockholders for the first six months of 2016 was $40.8 million, or $1.66 per diluted common share, compared to $30.5 million, or $1.47 per diluted common share, for the first six months of 2015. Return on average common equity was 12.63% and return on average assets was 1.01% for the first six months of 2016, compared to 12.90% and 0.94%, respectively, for the same period in 2015.

Commenting on Heartland’s second quarter 2016 results, Lynn B. Fuller, Heartland’s chairman and chief executive officer said, “Heartland continued to set new records with a strong financial performance for the second quarter and first half of 2016. Net income of $20.9 million represents a 40% increase over earnings for the second quarter of 2015 while year-to-date 2016 net income of $40.8 million represents a 34% increase over the previous year.”

On February 5, 2016, Heartland completed the acquisition of CIC Bancshares, Inc., parent company of Centennial Bank, headquartered in Denver, Colorado, in a transaction valued at approximately $82.3 million. Of this amount, $15.7 million was paid in cash with the remainder of the consideration provided by the issuance of Heartland common stock, a new series of convertible preferred stock and the assumption of convertible notes and subordinated debt. Simultaneous with closing of the transaction, Centennial Bank merged into Heartland’s Summit Bank & Trust subsidiary, with the resulting institution operating under the name, Centennial Bank and Trust. As of the closing date, Centennial Bank had, at fair value, total assets of $769.7 million, total loans of $581.5 million and total deposits of $648.1 million. The systems conversion for this transaction was completed in June 2016.

Fully Taxable Equivalent Net Interest Margin Remains Above 4.00% and Interest Income Increases

Net interest margin, expressed as a percentage of average earning assets, was 3.95% (4.12% on a fully taxable equivalent basis) during the second quarter of 2016, compared to 4.02% (4.19% on a fully taxable equivalent basis) during the first quarter of 2016 and 3.81% (3.97% on a fully taxable equivalent basis) during the second quarter of 2015.

Fuller said, “We are very pleased to see net interest margin of 4.12% on a fully taxable equivalent basis for the second quarter. Heartland’s enviable margin is the result of diligent price discipline. Net interest income in dollars has increased steadily for each of the last 15 quarters.”

Interest income for the second quarter of 2016 was $81.3 million, an increase of $15.9 million or 24%, compared to the $65.4 million recorded in the second quarter of 2015. The tax-equivalent adjustment for income taxes saved on the interest earned on nontaxable securities and loans was $3.1 million for the second quarter of 2016 and $2.4 million for the second quarter of 2015. With these adjustments, interest income on a tax-equivalent basis was $84.5 million for the second quarter of 2016, an increase of $16.6 million or 25%, compared to $67.8 million for the second quarter of 2015. The increase in interest income in the second quarter of 2016, as compared to the second quarter of 2015, was primarily due to an increase in average earning assets, which totaled $7.45 billion during the second quarter of 2016 compared to $6.07 billion during the second quarter of 2015, a $1.38 billion or 23% increase. A majority of this growth was attributable to the three acquisitions completed during the last half of 2015, in addition to the acquisition of CIC Bancshares, Inc. completed in February 2016.

Interest expense for the second quarter of 2016 was $8.2 million, an increase of $416,000 or 5% from $7.8 million in the second quarter of 2015. Average interest bearing liabilities increased $912.3 million or 20% for the quarter ended June 30, 2016, as compared to the same quarter in 2015, while the average interest rate paid on Heartland's interest bearing deposits and borrowings declined 8 basis points from 0.70% in the second quarter of 2015 to 0.62% in the second quarter of 2016. The average interest rate paid on savings deposits was 0.22% during the second quarter of 2016 compared to 0.23% during the second quarter of 2015, and the average interest rate paid on time deposits was 0.79% during the second quarter of 2016 compared to 0.97% during the second quarter of 2015.

Net interest income increased $15.5 million or 27% to $73.1 million in the second quarter of 2016 from the $57.6 million recorded in the second quarter of 2015. After the tax-equivalent adjustment discussed above, net interest income on a tax-equivalent basis totaled $76.3 million during the second quarter of 2016, an increase of $16.2 million or 27% from the $60.1 million recorded during the second quarter of 2015.

Noninterest Income and Noninterest Expenses Increase

Noninterest income totaled $31.0 million during the second quarter of 2016 compared to $30.7 million during the second quarter of 2015, an increase of $365,000 or 1%. Service charges and fees totaled $8.0 million during the second quarter of 2016 compared to $5.9 million during the second quarter of 2015, an increase of $2.1 million or 36%. 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 half of 2015 and first quarter of 2016. Net securities gains totaled $4.6 million during the second quarter of 2016 compared to $3.1 million during the second quarter of 2015, an increase of $1.5 million or 49%. Gains on sale of loans held for sale totaled $11.3 million during the second quarter of 2016 compared to $14.6 million during the second quarter of 2015, a decrease of $3.3 million or 23%.

Fuller commented, “We are seeing solid improvement from key fee-producing business lines as we expand our footprint and offer financial services to clients of our newly-acquired banks. Specifically, in the second quarter of 2016, revenues from commercial card services and debit cards increased more than 10% over the first quarter.”

For the second quarter of 2016, noninterest expenses totaled $71.0 million compared to $63.5 million during the second quarter of 2015, an increase of $7.5 million or 12%. The categories with the most significant increases were the following: salaries and employee benefits, which increased $5.1 million or 14%; occupancy, which increased $1.2 million or 30%; and professional fees, which increased $2.2 million or 43%. These increases were primarily attributable to the recent acquisitions.

Heartland's effective tax rate was 32.37% for the second quarter of 2016 compared to 20.83% for the second quarter of 2015. Included in Heartland's income taxes for the second quarter of 2015 were federal historic rehabilitation tax credits totaling $2.9 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 second quarter of 2016 compared to $145,000 during the second 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 18.86% during the second quarter of 2016 compared to 23.35% during the second quarter of 2015.

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

Total assets were $8.20 billion at June 30, 2016, an increase of $509.6 million or 7% since year-end 2015. Included in this growth, at fair value, were $769.7 million of assets acquired in the CIC Bancshares, Inc. transaction. Securities represented 23% of total assets at June 30, 2016, compared to 24% at December 31, 2015.

Total loans and leases held to maturity were $5.48 billion at June 30, 2016, compared to $5.00 billion at year-end 2015, an increase of $480.8 million or 10%. This increase includes $581.5 million of total loans and leases held to maturity, at fair value, acquired in the CIC Bancshares, Inc. transaction. Exclusive of this transaction, total loans and leases held to maturity decreased $20.7 million during the second quarter of 2016 and $80.0 million during the first quarter of 2016.

Total deposits were $6.84 billion as of June 30, 2016, compared to $6.41 billion at year-end 2015, an increase of $431.7 million or 7%. This increase included $648.1 million of deposits, at fair value, acquired in the CIC Bancshares, Inc. acquisition. Exclusive of this transaction, total deposits decreased $86.8 million during the second quarter of 2016 and $129.6 million during the first quarter of 2016, with both decreases primarily attributable to reduced time deposits. Demand deposits totaled $2.15 billion at June 30, 2016, an increase of $235.8 million or 12% since year-end 2015, with $164.3 million of the increase attributable to the CIC Bancshares, Inc. transaction. Exclusive of this transaction, demand deposits increased $70.4 million during the second quarter of 2016 and $1.1 million during the first quarter of 2016.

Nonperforming Assets Increase

Nonperforming assets were $68.6 million or 0.84% of total assets at June 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 $13.4 million or 26% since year-end 2015. Nonperforming loans were $57.1 million or 1.04% of total loans and leases at June 30, 2016, compared to $39.7 million or 0.79% of total loans and leases at December 31, 2015.

The allowance for loan and lease losses at June 30, 2016, was 0.94% of loans and leases and 90.72% of nonperforming loans compared to 0.97% of loans and leases and 122.77% of nonperforming loans at December 31, 2015. The provision for loan losses was $2.1 million for the second quarter of 2016 compared to $5.7 million for the second quarter of 2015.

Fuller commented, "Overall credit quality remains sound, with nonperforming assets moving up, impacted by one large, well-collateralized legacy credit that moved to nonperforming status during the second quarter, as well as continued recognition of a small number of credits from the recently acquired bank portfolios."

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 July 24, 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
June 30,
For the Six Months Ended
June 30,
2016 2015 2016 2015
Interest Income
Interest and fees on loans and leases$69,809 $55,824 $138,234 $108,873
Interest on securities:
Taxable7,952 6,739 16,687 13,871
Nontaxable3,566 2,874 7,076 5,790
Interest on federal funds sold1 1 11 2
Interest on deposits in other financial institutions3 3 7 7
Total Interest Income81,331 65,441 162,015 128,543
Interest Expense
Interest on deposits4,021 3,819 8,194 7,991
Interest on short-term borrowings519 212 848 410
Interest on other borrowings3,673 3,766 7,148 8,568
Total Interest Expense8,213 7,797 16,190 16,969
Net Interest Income73,118 57,644 145,825 111,574
Provision for loan and lease losses2,118 5,674 4,185 7,345
Net Interest Income After Provision for Loan and Lease Losses71,000 51,970 141,640 104,229
Noninterest Income
Service charges and fees8,022 5,900 15,184 11,304
Loan servicing income1,292 1,163 2,560 2,204
Trust fees3,625 3,913 7,438 7,544
Brokerage and insurance commissions886 916 1,908 2,003
Securities gains, net4,622 3,110 8,148 7,463
Gains on sale of loans held for sale11,270 14,599 22,335 28,341
Valuation adjustment on commercial servicing rights(46) (46)
Income on bank owned life insurance591 459 1,113 983
Other noninterest income764 601 1,964 1,482
Total Noninterest Income31,026 30,661 60,604 61,324
Noninterest Expense
Salaries and employee benefits41,985 36,851 83,699 73,489
Occupancy5,220 4,028 10,223 8,287
Furniture and equipment2,442 2,176 4,555 4,282
Professional fees7,486 5,249 14,496 11,293
FDIC insurance assessments1,120 899 2,288 1,855
Advertising1,551 1,333 2,835 2,514
Intangible assets amortization1,297 715 3,192 1,346
Other real estate and loan collection expenses659 753 1,231 1,218
(Gain)/loss on sales/valuations of assets, net(43) 1,509 270 1,862
Other noninterest expenses9,303 9,969 18,540 16,950
Total Noninterest Expense71,020 63,482 141,329 123,096
Income Before Income Taxes31,006 19,149 60,915 42,457
Income taxes10,036 3,989 19,936 11,588
Net Income20,970 15,160 40,979 30,869
Preferred dividends(52) (204) (220) (408)
Interest expense on convertible preferred debt31 31
Net Income Available to Common Stockholders$20,949 $14,956 $40,790 $30,461
Earnings per common share-diluted$0.84 $0.72 $1.66 $1.47
Weighted average shares outstanding-diluted24,974,995 20,877,236 24,541,356 20,681,800


HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
For the Quarter Ended
6/30/2016 3/31/2016 12/31/2015 9/30/2015 6/30/2015
Interest Income
Interest and fees on loans and leases$69,809 $68,425 $59,905 $58,328 $55,824
Interest on securities:
Taxable7,952 8,735 6,917 5,858 6,739
Nontaxable3,566 3,510 3,311 3,077 2,874
Interest on federal funds sold1 10 21 1 1
Interest on deposits in other financial institutions3 4 3 4 3
Total Interest Income81,331 80,684 70,157 67,268 65,441
Interest Expense
Interest on deposits4,021 4,173 3,772 3,767 3,819
Interest on short-term borrowings519 329 200 228 212
Interest on other borrowings3,673 3,475 3,485 3,549 3,766
Total Interest Expense8,213 7,977 7,457 7,544 7,797
Net Interest Income73,118 72,707 62,700 59,724 57,644
Provision for loan and lease losses2,118 2,067 2,171 3,181 5,674
Net Interest Income After Provision for Loan and Lease Losses71,000 70,640 60,529 56,543 51,970
Noninterest Income
Service charges and fees8,022 7,162 6,654 6,350 5,900
Loan servicing income1,292 1,268 1,704 1,368 1,163
Trust fees3,625 3,813 3,230 3,507 3,913
Brokerage and insurance commissions886 1,022 917 869 916
Securities gains, net4,622 3,526 3,913 1,767 3,110
Impairment loss on securities (769)
Gains on sale of loans held for sale11,270 11,065 7,085 9,823 14,599
Valuation adjustment on commercial servicing rights(46)
Income on bank owned life insurance591 522 644 372 459
Other noninterest income764 1,200 1,003 924 601
Total Noninterest Income31,026 29,578 24,381 24,980 30,661
Noninterest Expense
Salaries and employee benefits41,985 41,714 33,583 37,033 36,851
Occupancy5,220 5,003 4,334 4,307 4,028
Furniture and equipment2,442 2,113 2,344 2,121 2,176
Professional fees7,486 7,010 6,503 5,251 5,249
FDIC insurance assessments1,120 1,168 886 1,018 899
Advertising1,551 1,284 1,624 1,327 1,333
Intangible assets amortization1,297 1,895 898 734 715
Other real estate and loan collection expenses659 572 723 496 753
(Gain)/loss on sales/valuations of assets, net(43) 313 4,238 721 1,509
Other noninterest expenses9,303 9,237 10,821 8,988 9,969
Total Noninterest Expense71,020 70,309 65,954 61,996 63,482
Income Before Income Taxes31,006 29,909 18,956 19,527 19,149
Income taxes10,036 9,900 4,365 4,945 3,989
Net Income20,970 20,009 14,591 14,582 15,160
Preferred dividends(52) (168) (204) (205) (204)
Interest expense on convertible preferred debt31
Net Income Available to Common Stockholders$20,949 $19,841 $14,387 $14,377 $14,956
Earnings per common share-diluted$0.84 $0.82 $0.67 $0.69 $0.72
Weighted average shares outstanding-diluted24,974,995 24,117,384 21,491,699 20,893,312 20,877,236


HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
As Of
6/30/2016 3/31/2016 12/31/2015 9/30/2015 6/30/2015
Assets
Cash and due from banks$222,718 $124,060 $237,841 $76,954 $111,909
Federal funds sold and other short-term investments7,232 9,168 20,958 14,151 7,813
Cash and cash equivalents229,950 133,228 258,799 91,105 119,722
Time deposits in other financial institutions2,105 2,355 2,355 2,355 2,355
Securities:
Available for sale, at fair value1,566,592 1,690,516 1,578,434 1,261,687 1,315,699
Held to maturity, at cost270,423 271,300 279,117 282,200 283,258
Other investments, at cost22,680 22,325 21,443 19,292 20,455
Loans held for sale82,538 76,565 74,783 102,569 105,898
Loans and leases:
Held to maturity5,482,258 5,503,005 5,001,486 4,642,523 4,449,823
Allowance for loan and lease losses(51,756) (49,738) (48,685) (47,105) (45,614)
Loans and leases, net5,430,502 5,453,267 4,952,801 4,595,418 4,404,209
Premises, furniture and equipment, net168,701 164,788 150,148 147,486 143,423
Other real estate, net11,003 11,338 11,524 17,041 16,983
Goodwill127,699 127,699 97,852 56,828 54,162
Core deposit intangibles, net25,213 26,510 22,019 14,937 13,642
Servicing rights, net35,654 34,910 34,926 33,758 31,584
Cash surrender value on life insurance111,425 110,834 110,297 99,564 96,693
Other assets119,916 128,144 100,256 81,644 108,924
Total Assets$8,204,401 $8,253,779 $7,694,754 $6,805,884 $6,717,007
Liabilities and Equity
Liabilities
Deposits:
Demand$2,149,911 $2,079,521 $1,914,141 $1,632,005 $1,536,355
Savings3,691,791 3,702,431 3,367,479 2,936,611 2,816,666
Time995,870 1,142,368 1,124,203 938,621 964,248
Total deposits6,837,572 6,924,320 6,405,823 5,507,237 5,317,269
Short-term borrowings303,707 325,741 293,898 335,845 477,918
Other borrowings296,895 265,760 263,214 302,086 296,594
Accrued expenses and other liabilities78,264 68,415 68,646 69,707 46,020
Total Liabilities7,516,438 7,584,236 7,031,581 6,214,875 6,137,801
Stockholders' Equity
Preferred equity3,777 3,777 81,698 81,698 81,698
Common stock24,544 24,520 22,436 20,640 20,616
Capital surplus274,682 273,310 216,436 149,613 148,789
Retained earnings384,479 366,014 348,630 337,421 325,106
Accumulated other comprehensive income (loss)513 1,924 (6,027) 1,731 3,059
Treasury stock at cost(32) (2) (94) (62)
Total Equity687,963 669,543 663,173 591,009 579,206
Total Liabilities and Equity$8,204,401 $8,253,779 $7,694,754 $6,805,884 $6,717,007


HEARTLAND FINANCIAL USA, INC
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
For the Quarter Ended
June 30,
For the Six Months Ended
June 30,
2016 2015 2016 2015
Average Balances
Assets$8,211,326 $6,625,797 $8,118,198 $6,540,509
Loans and leases, net of unearned5,582,878 4,447,124 5,470,490 4,357,855
Deposits6,806,259 5,302,235 6,742,635 5,232,398
Earning assets7,446,849 6,069,844 7,361,775 5,964,112
Interest bearing liabilities5,363,477 4,451,200 5,318,320 4,424,840
Common stockholders' equity669,930 489,394 649,612 476,295
Total stockholders' equity673,707 571,092 684,739 557,933
Tangible common stockholders' equity(1)516,347 424,245 500,726 412,834
Key Performance Ratios
Annualized return on average assets1.03% 0.91% 1.01% 0.94%
Annualized return on average common equity12.58% 12.26% 12.63% 12.90%
Annualized return on average common tangible equity(2)16.32% 14.14% 16.38% 14.88%
Annualized ratio of net charge-offs to average loans and leases0.01% 0.17% 0.04% 0.15%
Annualized net interest margin, fully tax equivalent(3)4.12% 3.97% 4.15% 3.93%
Efficiency ratio, fully taxable equivalent(4)67.95% 67.43% 67.43% 69.14%
Reconciliation of Return on Average Common Tangible Equity (non-GAAP)(5)
Net income available to common shareholders (GAAP)$20,949 $14,956 $40,790 $30,461
Average common stockholders' equity (GAAP)$669,930 $489,394 $649,612 $476,295
Less average goodwill127,700 51,107 123,727 50,817
Less average other intangibles, net25,883 14,042 25,159 12,644
Average common tangible equity (non-GAAP)$516,347 $424,245 $500,726 $412,834
Annualized return on average common equity (GAAP)12.58% 12.26% 12.63% 12.90%
Annualized return on average common tangible equity (non-GAAP)16.32% 14.14% 16.38% 14.88%
Reconciliation of Annualized Net Interest Margin,
Fully Taxable Equivalent (non-GAAP)(6)
Net Interest Income (GAAP)$73,118 $57,644 $145,825 $111,574
Plus taxable equivalent adjustment(7)3,146 2,408 6,187 4,801
Net interest income - taxable equivalent (non-GAAP)
$76,264 $60,052 $152,012 $116,375
Average earning assets$7,446,849 $6,069,844 $7,361,775 $5,964,112
Annualized net interest margin (GAAP)3.95% 3.81% 3.98% 3.78%
Annualized net interest margin, fully taxable equivalent (non-GAAP)
4.12% 3.97% 4.15% 3.93%
(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 above.
(3) Refer to the "Reconciliation of Annualized Net Interest Margin, Fully Taxable Equivalent (non-GAAP)" table above.
(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 tax 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
6/30/2016 3/31/2016 12/31/2015 9/30/2015 6/30/2015
Average Balances
Assets$8,211,326 $8,025,070 $7,241,104 $6,726,196 $6,625,797
Loans and leases, net of unearned5,582,878 5,358,102 4,827,844 4,654,179 4,447,124
Deposits6,806,259 6,679,010 5,938,905 5,423,418 5,302,235
Earning assets7,446,849 7,276,703 6,512,565 6,161,495 6,069,844
Interest bearing liabilities5,363,477 5,273,164 4,781,797 4,491,089 4,451,200
Common stockholders' equity669,930 629,294 533,845 500,399 489,394
Total stockholders' equity673,707 695,771 615,543 582,097 571,092
Tangible common stockholders' equity(1)516,347 485,108 446,370 431,304 424,245
Key Performance Ratios
Annualized return on average assets1.03% 0.99% 0.79% 0.85% 0.91%
Annualized return on average common equity12.58% 12.68% 10.69% 11.40% 12.26%
Annualized return on average common tangible equity(2)16.32% 16.45% 12.79% 13.22% 14.14%
Annualized ratio of net charge-offs to average loans and leases0.01% 0.08% 0.05% 0.14% 0.17%
Annualized net interest margin, fully tax equivalent(3)4.12% 4.19% 3.99% 4.01% 3.97%
Efficiency ratio, fully taxable equivalent(4)67.95% 66.90% 68.53% 69.85% 67.43%
Reconciliation of Return on Average Common Tangible Equity (non-GAAP)(5)
Net income available to common shareholders (GAAP)$20,949 $19,841 $14,387 $14,377 $14,956
Average common stockholders' equity (GAAP)$669,930 $629,294 $533,845 $500,399 $489,394
Less average goodwill127,700 119,750 70,222 55,073 51,107
Less average other intangibles, net25,833 24,436 17,253 14,022 14,042
Average common tangible equity (non-GAAP)$516,397 $485,108 $446,370 $431,304 $424,245
Annualized return on average common equity (GAAP)12.58% 12.68% 10.69% 11.40% 12.26%
Annualized return on average common tangible equity (non-GAAP)16.32% 16.45% 12.79% 13.22% 14.14%
Reconciliation of Annualized Net Interest Margin, Fully Taxable Equivalent (non-GAAP)(6)
Net Interest Income (GAAP)$73,118 $72,707 $62,700 $59,724 $57,644
Plus taxable equivalent adjustment(7)3,146 3,041 2,827 2,588 2,408
Net interest income, fully taxable equivalent (non-GAAP)$76,264 $75,748 $65,527 $62,312 $60,052
Average earning assets$7,446,849 $7,276,703 $6,512,565 $6,161,495 $6,069,844
Annualized net interest margin (GAAP)3.95% 4.02% 3.82% 3.85% 3.81%
Annualized net interest margin, fully taxable equivalent (non-GAAP)4.12% 4.19% 3.99% 4.01% 3.97%
(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 above.
(3) Refer to the "Reconciliation of Annualized Net Interest Margin, Fully Taxable Equivalent (non-GAAP)" table above.
(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 tax 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
June 30,
For the Six Months Ended
June 30,
Reconciliation of Non-GAAP Measure-Efficiency Ratio(1)2016 2015 2016 2015
Net interest income$73,118 $57,644 $145,825 $111,574
Taxable equivalent adjustment(2)3,146 2,408 6,187 4,801
Fully taxable equivalent net interest income76,264 60,052 152,012 116,375
Noninterest income31,026 30,661 60,604 61,324
Securities gains, net(4,622) (3,110) (8,148) (7,463)
Adjusted income$102,668 $87,603 $204,468 $170,236
Total noninterest expenses$71,020 $63,482 $141,329 $123,096
Less:
Intangible assets amortization1,297 715 3,192 1,346
Partnership investment in historic rehabilitation tax credits 2,190 2,190
(Gain)/loss on sales/valuations of assets, net(43) 1,509 270 1,862
Adjusted noninterest expenses$69,766 $59,068 $137,867 $117,698
Efficiency ratio, fully taxable equivalent67.95% 67.43% 67.43% 69.14%
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
6/30/2016 3/31/2016 12/31/2015 9/30/2015 6/30/2015
Net interest income$73,118 $72,707 $62,700 $59,724 $57,644
Taxable equivalent adjustment(2)3,146 3,041 2,827 2,588 2,408
Fully taxable equivalent net interest income76,264 75,748 65,527 62,312 60,052
Noninterest income31,026 29,578 24,381 24,980 30,661
Securities gains, net(4,622) (3,526) (3,913) (1,767) (3,110)
Impairment loss on securities 769
Adjusted income$102,668 $101,800 $86,764 $85,525 $87,603
Total noninterest expenses$71,020 $70,309 $65,954 $61,996 $63,482
Less:
Intangible assets amortization1,297 1,895 898 734 715
Partnership investment in historic rehabilitation tax credits 1,362 805 2,190
(Gain)/loss on sales/valuation of assets, net(43) 313 4,238 721 1,509
Adjusted noninterest expenses$69,766 $68,101 $59,456 $59,736 $59,068
Efficiency ratio, fully taxable equivalent67.95% 66.90% 68.53% 69.85% 67.43%
(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 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, 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
6/30/2016 3/31/2016 12/31/2015 9/30/15 6/30/2015
Common Share Data
Book value per common share$27.88 $27.15 $25.92 $24.68 $24.13
Tangible book value per common share (non-GAAP)(1)$21.65 $20.86 $20.57 $21.20 $20.84
ASC 320 effect on book value per common share$0.21 $0.23 $(0.18) $0.22 $0.21
Common shares outstanding, net of treasury stock24,543,376 24,519,928 22,435,693 20,637,321 20,614,325
Tangible capital ratio (non-GAAP)(2)6.60% 6.32% 6.09% 6.50% 6.46%
Reconciliation of Tangible Book Value Per Common Share (non-GAAP)(3)
Common stockholders' equity (GAAP)$684,186 $665,766 $581,475 $509,311 $497,508
Less goodwill127,699 127,699 97,852 56,828 54,162
Less other intangible assets, net25,213 26,510 22,019 14,937 13,642
Tangible common stockholders' equity (non-GAAP)$531,274 $511,557 $461,604 $437,546 $429,704
Common shares outstanding, net of treasury stock24,543,376 24,519,928 22,435,693 20,637,321 20,614,325
Common stockholders' equity (book value) per share (GAAP)$27.88 $27.15 $25.92 $24.68 $24.13
Tangible book value per common share (non-GAAP)$21.65 $20.86 $20.57 $21.20 $20.84
Reconciliation of Tangible Capital Ratio (non-GAAP)(4)
Total assets (GAAP)$8,204,401 $8,253,779 $7,694,754 $6,805,884 $6,717,007
Less goodwill127,699 127,699 97,852 56,828 54,162
Less other intangible assets, net25,213 26,510 22,019 14,937 13,642
Total tangible assets (non-GAAP)$8,051,489 $8,099,570 $7,574,883 $6,734,119 $6,649,203
Tangible capital ratio (non-GAAP)6.60% 6.32% 6.09% 6.50% 6.46%
Loan and Lease Data
Loans held to maturity:
Commercial and commercial real estate$3,930,879 $3,951,839 $3,605,574 $3,303,098 $3,199,717
Residential mortgage644,267 666,184 539,555 491,667 443,026
Agricultural and agricultural real estate480,883 471,271 471,870 469,381 444,110
Consumer428,730 417,114 386,867 379,903 364,441
Unearned discount and deferred loan fees(2,501) (3,403) (2,380) (1,526) (1,471)
Total loans and leases held to maturity$5,482,258 $5,503,005 $5,001,486 $4,642,523 $4,449,823
Other Selected Trend Information
Effective tax rate32.37% 33.10% 23.03% 25.32% 20.83%
Full time equivalent employees1,888 1,907 1,799 1,736 1,788
Total Residential Mortgage Loan Applications$440,907 $406,999 $307,163 $443,294 $615,463
Residential Mortgage Loans Originated$324,633 $238,266 $258,939 $370,956 $421,798
Residential Mortgage Loans Sold$302,448 $220,381 $260,189 $360,172 $402,151
Residential Mortgage Loan Servicing Portfolio$4,203,429 $4,112,519 $4,057,861 $3,963,677 $3,785,794
(1) Refer to the "Reconciliation of Tangible Book Value Per Common Share (non-GAAP)" table above.
(2) Refer to the " Reconciliation of Tangible Capital Ratio (non-GAAP)" table above.
(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
6/30/2016 3/31/2016 12/31/2015 9/30/2015 6/30/2015
Allowance for Loan and Lease Losses
Balance, beginning of period$49,738 $48,685 $47,105 $45,614 $41,854
Provision for loan and lease losses2,118 2,067 2,171 3,181 5,674
Charge-offs(2,951) (1,605) (1,837) (2,439) (2,734)
Recoveries2,851 591 1,246 749 820
Balance, end of period$51,756 $49,738 $48,685 $47,105 $45,614
Asset Quality
Nonaccrual loans$57,053 $47,750 $39,655 $32,577 $26,710
Loans and leases past due ninety days or more as to interest or principal payments 639 1,181
Other real estate owned11,003 11,338 11,524 17,041 16,983
Other repossessed assets564 426 485 626 544
Total nonperforming assets$68,620 $60,153 $51,664 $51,425 $44,237
Performing troubled debt restructured loans$9,923 $10,711 $10,968 $10,154 $10,903
Nonperforming Assets Activity
Balance, beginning of period$60,153 $51,664 $51,425 $44,237 $46,533
Net loan charge offs(100) (1,014) (591) (1,690) (1,914)
New nonperforming loans19,994 12,171 9,686 7,996 4,676
Acquired nonperforming assets 3,516 4,956 5,328
Reduction of nonperforming loans (1)(10,313) (3,563) (6,768) (2,758) (1,409)
OREO/Repossessed assets sales proceeds(918) (2,411) (2,980) (1,074) (3,202)
OREO/Repossessed assets writedowns, net(337) (182) (3,909) (756) (565)
Net activity at Citizens Finance Co.141 (28) (155) 142 118
Balance, end of period$68,620 $60,153 $51,664 $51,425 $44,237
Asset Quality Ratios
Ratio of nonperforming loans and leases to total loans and leases1.04% 0.88% 0.79% 0.73% 0.60%
Ratio of nonperforming assets to total assets0.84% 0.73% 0.67% 0.76% 0.66%
Annualized ratio of net loan charge-offs to average loans and leases0.01% 0.08% 0.05% 0.14% 0.17%
Allowance for loan and lease losses as a percent of loans and leases0.94% 0.90% 0.97% 1.01% 1.03%
Allowance for loan and lease losses as a percent of nonperforming loans and leases90.72% 102.79% 122.77% 139.54% 170.78%
Loans delinquent 30-89 days as a percent of total loans0.73% 0.45% 0.31% 0.40% 0.31%
(1) Includes principal reductions, transfers to performing status and transfers to OREO


HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS
For the Quarter Ended
June 30, 2016 June 30, 2015
Average
Balance
Interest Rate Average
Balance
Interest Rate
Earning Assets
Securities:
Taxable$1,468,896 $7,952 2.18% $1,324,870 $6,739 2.04%
Nontaxable(1)430,086 5,486 5.13 325,023 4,422 5.46
Total securities1,898,982 13,438 2.85 1,649,893 11,161 2.71
Interest bearing deposits10,727 3 0.11 10,889 3 0.11
Federal funds sold5,114 1 0.08 5,109 1 0.08
Loans and leases: (2)
Commercial and commercial real estate(1)3,866,861 46,889 4.88 3,122,239 37,666 4.84
Residential mortgage803,952 8,286 4.15 538,170 5,415 4.04
Agricultural and agricultural real estate(1)481,625 5,504 4.60 428,284 5,280 4.94
Consumer430,440 8,273 7.73 358,431 7,204 8.06
Fees on loans 2,083 1,119
Less: allowance for loan and lease losses(50,852) (43,171)
Net loans and leases5,532,026 71,035 5.16 4,403,953 56,684 5.16
Total earning assets7,446,849 84,477 4.56% 6,069,844 67,849 4.48%
Nonearning Assets764,477 555,953
Total Assets$8,211,326 $6,625,797
Interest Bearing Liabilities
Savings$3,699,971 $2,028 0.22% $2,852,272 $1,642 0.23%
Time, $100,000 and over421,151 733 0.70 348,661 794 0.91
Other time deposits586,810 1,260 0.86 552,115 1,383 1.00
Short-term borrowings373,768 519 0.56 373,021 212 0.23
Other borrowings281,777 3,673 5.24 325,131 3,766 4.65
Total interest bearing liabilities5,363,477 8,213 0.62% 4,451,200 7,797 0.70%
Noninterest Bearing Liabilities
Noninterest bearing deposits2,098,327 1,549,187
Accrued interest and other liabilities75,815 54,318
Total noninterest bearing liabilities2,174,142 1,603,505
Stockholders' Equity673,707 571,092
Total Liabilities and Stockholders' Equity$8,211,326 $6,625,797
Net interest income, fully taxable equivalent (non-GAAP)(1) $76,264 $60,052
Net interest spread(1) 3.94% 3.78%
Net interest income, fully taxable equivalent (non-GAAP) to total earning assets(1) 4.12% 3.97%
Interest bearing liabilities to earning assets72.02% 73.33%
Reconciliation to Reported Net Interest Income
Net interest income, fully taxable equivalent (non-GAAP) $76,264 $60,052
Adjustments for taxable equivalent interest(1) (3,146) (2,408)
Net interest income (GAAP) $73,118 $57,644
(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.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS
For the Six Months Ended
June 30, 2016 June 30, 2015
Average
Balance
Interest Rate Average
Balance
Interest Rate
Earning Assets
Securities:
Taxable$1,488,664 $16,687 2.25% $1,304,304 $13,871 2.14%
Nontaxable(1)423,655 10,886 5.17 328,163 8,908 5.47
Total securities1,912,319 27,573 2.90 1,632,467 22,779 2.81
Interest bearing deposits11,180 7 0.13 10,046 7 0.14
Federal funds sold18,120 11 0.12 6,356 2 0.06
Loans and leases: (2)
Commercial and commercial real estate(1)3,805,401 93,643 4.95 3,072,995 73,541 4.83
Residential mortgage769,043 15,885 4.15 508,723 10,298 4.08
Agricultural and agricultural real estate(1)474,801 11,233 4.76 423,295 10,310 4.91
Consumer421,245 16,196 7.73 352,842 14,092 8.05
Fees on loans 3,654 2,315
Less: allowance for loan and lease losses(50,334) (42,612)
Net loans and leases5,420,156 140,611 5.22 4,315,243 110,556 5.17
Total earning assets7,361,775 168,202 4.59% 5,964,112 133,344 4.51%
Nonearning Assets756,423 576,397
Total Assets$8,118,198 $6,540,509
Interest Bearing Liabilities
Savings$3,628,089 $3,922 0.22% $2,841,675 $3,437 0.24%
Time, $100,000 and over459,885 1,604 0.70 346,523 1,632 0.95
Other time deposits614,556 2,668 0.87 544,187 2,922 1.08
Short-term borrowings342,464 848 0.50 334,105 410 0.25
Other borrowings273,326 7,148 5.26 358,350 8,568 4.82
Total interest bearing liabilities5,318,320 16,190 0.61% 4,424,840 16,969 0.77%
Noninterest Bearing Liabilities
Noninterest bearing deposits2,040,105 1,500,013
Accrued interest and other liabilities75,034 57,663
Total noninterest bearing liabilities2,115,139 1,557,676
Stockholders' Equity684,739 557,993
Total Liabilities and Stockholders' Equity$8,118,198 $6,540,509
Net interest income, fully taxable equivalent (non-GAAP)(1) $152,012 $116,375
Net interest spread(1) 3.98% 3.74%
Net interest income, fully taxable equivalent (non-GAAP) to total earning assets(1) 4.15% 3.93%
Interest bearing liabilities to earning assets72.24% 74.19%
Reconciliation to Reported Net Interest Income
Net interest income, fully taxable equivalent (non-GAAP) $152,012 $116,375
Adjustments for taxable equivalent interest(1) (6,187) (4,801)
Net interest income (GAAP) $145,825 $111,574
(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
6/30/20163/31/201612/31/20159/30/20156/30/2015
Total Assets
Dubuque Bank and Trust Company$1,473,461 $1,498,771 $1,617,322 $1,431,767 $1,541,610
New Mexico Bank & Trust1,321,113 1,304,886 1,336,004 1,282,784 1,141,575
Wisconsin Bank & Trust1,080,224 1,094,872 1,139,337 1,098,405 1,150,867
Centennial Bank and Trust(1)909,697 927,040 161,806 155,114 152,672
Morrill & Janes Bank and Trust Company843,069 872,274 902,918 845,067 860,781
Illinois Bank & Trust742,697 718,074 757,478 769,170 784,162
Premier Valley Bank629,423 751,137 765,451
Arizona Bank & Trust577,002 558,369 591,066 599,119 510,838
Rocky Mountain Bank473,583 479,010 491,522 501,093 508,262
Minnesota Bank & Trust230,004 220,955 214,303 188,633 195,201
Total Portfolio Loans
Dubuque Bank and Trust Company$928,869 $941,683 $956,517 $953,273 $945,574
New Mexico Bank & Trust870,109 815,739 794,744 777,433 658,543
Wisconsin Bank & Trust732,503 758,789 793,508 844,557 876,321
Centennial Bank and Trust(1)668,547 683,085 101,449 94,127 95,275
Morrill & Janes Bank and Trust Company522,518 536,738 539,198 527,217 520,978
Illinois Bank & Trust466,983 465,783 465,937 473,859 455,247
Premier Valley Bank376,275 376,840 383,929
Arizona Bank & Trust390,078 402,431 444,501 444,916 383,588
Rocky Mountain Bank362,475 364,189 370,440 380,304 375,860
Minnesota Bank & Trust144,009 137,412 134,137 128,700 127,172
Total Deposits
Dubuque Bank and Trust Company$1,159,942 $1,144,470 $1,209,074 $1,120,999 $1,144,932
New Mexico Bank & Trust1,062,410 1,066,076 1,085,052 1,047,358 891,003
Wisconsin Bank & Trust911,915 921,071 974,001 904,803 985,804
Centennial Bank and Trust(1)775,417 779,607 128,759 139,826 122,928
Morrill & Janes Bank and Trust Company696,073 698,365 713,589 650,123 662,524
Illinois Bank & Trust653,582 629,235 631,010 641,024 645,354
Premier Valley Bank514,522 635,188 647,022
Arizona Bank & Trust497,599 468,312 500,490 491,254 405,680
Rocky Mountain Bank405,888 409,787 417,426 428,234 417,647
Minnesota Bank & Trust207,228 200,343 194,373 163,291 172,547
Net Income (Loss)
Dubuque Bank and Trust Company$4,475 $6,073 $3,587 $4,477 $7,416
New Mexico Bank & Trust5,642 4,094 2,576 3,220 3,658
Wisconsin Bank & Trust3,399 3,379 2,443 3,886 2,950
Centennial Bank and Trust(1)256 824 62 (6)(81)
Morrill & Janes Bank and Trust Company2,133 2,525 1,096 2,024 1,566
Illinois Bank & Trust2,397 2,027 574 1,877 1,309
Premier Valley Bank1,695 1,960 1,008
Arizona Bank & Trust2,121 1,841 968 1,254 998
Rocky Mountain Bank1,484 1,064 1,506 1,471 1,196
Minnesota Bank & Trust559 531 166 411 223
(1) Formerly known as Summit Bank & Trust.


CONTACT: Bryan R. McKeag Executive Vice President Chief Financial Officer (563) 589-1994 bmckeag@htlf.com

Source:Heartland Financial USA, Inc.