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Heartland Financial USA, Inc. Reports 2016 Third Quarter Results

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 share0.81 0.69 2.48 2.16
Return on average assets0.98% 0.85% 1.00% 0.91%
Return on average common equity11.64 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 margin3.97 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:
Taxable7,917 5,858 24,604 19,729
Nontaxable3,717 3,077 10,793 8,867
Interest on federal funds sold1 1 12 3
Interest on deposits in other financial institutions6 4 13 11
Total Interest Income81,687 67,268 243,702 195,811
Interest Expense
Interest on deposits4,001 3,767 12,195 11,758
Interest on short-term borrowings235 228 1,083 638
Interest on other borrowings3,770 3,549 10,918 12,117
Total Interest Expense8,006 7,544 24,196 24,513
Net Interest Income73,681 59,724 219,506 171,298
Provision for loan losses5,328 3,181 9,513 10,526
Net Interest Income After Provision for Loan Losses68,353 56,543 209,993 160,772
Noninterest Income
Service charges and fees8,278 6,350 23,462 17,654
Loan servicing income873 1,368 3,433 3,572
Trust fees3,689 3,507 11,127 11,051
Brokerage and insurance commissions1,006 869 2,914 2,872
Securities gains, net1,584 1,767 9,732 9,230
Gains on sale of loans held for sale11,459 9,823 33,794 38,164
Valuation adjustment on commercial servicing rights5 (41)
Income on bank owned life insurance620 372 1,733 1,355
Other noninterest income1,028 924 2,992 2,406
Total Noninterest Income28,542 24,980 89,146 86,304
Noninterest Expense
Salaries and employee benefits40,733 37,033 124,432 110,522
Occupancy5,099 4,307 15,322 12,594
Furniture and equipment2,746 2,121 7,301 6,403
Professional fees5,985 5,251 20,481 16,544
FDIC insurance assessments1,180 1,018 3,468 2,873
Advertising1,339 1,327 4,174 3,841
Intangible assets amortization1,291 734 4,483 2,080
Other real estate and loan collection expenses640 496 1,871 1,714
(Gain)/loss on sales/valuations of assets, net794 721 1,064 2,583
Other noninterest expenses8,620 8,988 27,160 25,938
Total Noninterest Expense68,427 61,996 209,756 185,092
Income Before Income Taxes28,468 19,527 89,383 61,984
Income taxes8,260 4,945 28,196 16,533
Net Income20,208 14,582 61,187 45,451
Preferred dividends(53) (205) (273) (613)
Interest expense on convertible preferred debt17 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-diluted24,922,946 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:
Taxable7,917 7,952 8,735 6,917 5,858
Nontaxable3,717 3,566 3,510 3,311 3,077
Interest on federal funds sold1 1 10 21 1
Interest on deposits in other financial institutions6 3 4 3 4
Total Interest Income81,687 81,331 80,684 70,157 67,268
Interest Expense
Interest on deposits4,001 4,021 4,173 3,772 3,767
Interest on short-term borrowings235 519 329 200 228
Interest on other borrowings3,770 3,673 3,475 3,485 3,549
Total Interest Expense8,006 8,213 7,977 7,457 7,544
Net Interest Income73,681 73,118 72,707 62,700 59,724
Provision for loan losses5,328 2,118 2,067 2,171 3,181
Net Interest Income After Provision for Loan Losses68,353 71,000 70,640 60,529 56,543
Noninterest Income
Service charges and fees8,278 8,022 7,162 6,654 6,350
Loan servicing income873 1,292 1,268 1,704 1,368
Trust fees3,689 3,625 3,813 3,230 3,507
Brokerage and insurance commissions1,006 886 1,022 917 869
Securities gains, net1,584 4,622 3,526 3,913 1,767
Impairment loss on securities (769)
Gains on sale of loans held for sale11,459 11,270 11,065 7,085 9,823
Valuation adjustment on commercial servicing rights5 (46)
Income on bank owned life insurance620 591 522 644 372
Other noninterest income1,028 764 1,200 1,003 924
Total Noninterest Income28,542 31,026 29,578 24,381 24,980
Noninterest Expense
Salaries and employee benefits40,733 41,985 41,714 33,583 37,033
Occupancy5,099 5,220 5,003 4,334 4,307
Furniture and equipment2,746 2,442 2,113 2,344 2,121
Professional fees5,985 7,486 7,010 6,503 5,251
FDIC insurance assessments1,180 1,120 1,168 886 1,018
Advertising1,339 1,551 1,284 1,624 1,327
Intangible assets amortization1,291 1,297 1,895 898 734
Other real estate and loan collection expenses640 659 572 723 496
(Gain)/loss on sales/valuations of assets, net794 (43) 313 4,238 721
Other noninterest expenses8,620 9,303 9,237 10,821 8,988
Total Noninterest Expense68,427 71,020 70,309 65,954 61,996
Income Before Income Taxes28,468 31,006 29,909 18,956 19,527
Income taxes8,260 10,036 9,900 4,365 4,945
Net Income20,208 20,970 20,009 14,591 14,582
Preferred dividends(53) (52) (168) (204) (205)
Interest expense on convertible preferred debt17 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-diluted24,922,946 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 investments5,855 7,232 9,168 20,958 14,151
Cash and cash equivalents202,089 229,950 133,228 258,799 91,105
Time deposits in other financial institutions2,105 2,105 2,355 2,355 2,355
Securities:
Available for sale, at fair value1,655,696 1,566,592 1,690,516 1,578,434 1,261,687
Held to maturity, at cost265,302 270,423 271,300 279,117 282,200
Other investments, at cost22,082 22,680 22,325 21,443 19,292
Loans held for sale78,317 82,538 76,565 74,783 102,569
Loans:
Held to maturity5,438,715 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, net5,384,062 5,430,502 5,453,267 4,952,801 4,595,418
Premises, furniture and equipment, net165,841 168,701 164,788 150,148 147,486
Goodwill127,699 127,699 127,699 97,852 56,828
Core deposit intangibles, net23,922 25,213 26,510 22,019 14,937
Servicing rights, net35,906 35,654 34,910 34,926 33,758
Cash surrender value on life insurance112,060 111,425 110,834 110,297 99,564
Other real estate, net10,740 11,003 11,338 11,524 17,041
Other assets116,394 119,916 128,144 100,256 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
Savings3,753,300 3,691,791 3,702,431 3,367,479 2,936,611
Time920,657 995,870 1,142,368 1,124,203 938,621
Total deposits6,912,693 6,837,572 6,924,320 6,405,823 5,507,237
Short-term borrowings214,105 303,707 325,741 293,898 335,845
Other borrowings294,493 296,895 265,760 263,214 302,086
Accrued expenses and other liabilities76,536 78,264 68,415 68,646 69,707
Total Liabilities7,497,827 7,516,438 7,584,236 7,031,581 6,214,875
Stockholders' Equity
Preferred equity1,357 3,777 3,777 81,698 81,698
Common stock24,683 24,544 24,520 22,436 20,640
Capital surplus279,316 274,682 273,310 216,436 149,613
Retained earnings402,179 384,479 366,014 348,630 337,421
Accumulated other comprehensive income (loss)(3,079) 513 1,924 (6,027) 1,731
Treasury stock at cost(68) (32) (2) (94)
Total Equity704,388 687,963 669,543 663,173 591,009
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 unearned5,538,088 4,654,179 5,493,187 4,457,715
Deposits6,839,334 5,423,418 6,775,103 5,296,771
Earning assets7,382,860 6,161,495 7,368,856 6,030,612
Interest bearing liabilities5,224,172 4,491,089 5,286,708 4,447,165
Common stockholders' equity689,637 500,399 663,050 484,418
Total stockholders' equity692,404 582,097 687,312 566,116
Tangible common stockholders' equity(1)537,375 431,304 513,031 419,059
Key Performance Ratios
Annualized return on average assets0.98% 0.85% 1.00% 0.91%
Annualized return on average common equity11.64% 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 loans0.17% 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 goodwill127,699 55,073 125,061 52,251
Less average other intangibles, net24,563 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 unearned5,538,088 5,582,878 5,358,102 4,827,844 4,654,179
Deposits6,839,334 6,806,259 6,679,010 5,938,905 5,423,418
Earning assets7,382,860 7,446,849 7,276,703 6,512,565 6,161,495
Interest bearing liabilities5,224,172 5,363,477 5,273,164 4,781,797 4,491,089
Common stockholders' equity689,637 669,930 629,294 533,845 500,399
Total stockholders' equity692,404 673,707 695,771 615,543 582,097
Tangible common stockholders' equity(1)537,375 516,347 485,108 446,370 431,304
Key Performance Ratios
Annualized return on average assets0.98% 1.03% 0.99% 0.79% 0.85%
Annualized return on average common equity11.64% 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 loans0.17% 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 goodwill127,699 127,699 119,750 70,222 55,073
Less average other intangibles, net24,563 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 income76,902 62,312 228,914 178,687
Noninterest income28,542 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 amortization1,291 734 4,483 2,080
Partnership investment in historic rehabilitation tax credits 805 2,995
(Gain)/loss on sales/valuations of assets, net794 721 1,064 2,583
Adjusted noninterest expenses$66,342 $59,736 $204,209 $177,434
Efficiency ratio, fully taxable equivalent63.88% 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 income76,902 76,264 75,748 65,527 62,312
Noninterest income28,542 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 amortization1,291 1,297 1,895 898 734
Partnership investment in historic rehabilitation tax credits 1,362 805
(Gain)/loss on sales/valuation of assets, net794 (43) 313 4,238 721
Adjusted noninterest expenses$66,342 $69,766 $68,101 $59,456 $59,736
Efficiency ratio, fully taxable equivalent63.88% 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 stock24,681,380 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 goodwill127,699 127,699 127,699 97,852 56,828
Less other intangible assets, net23,922 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 stock24,681,380 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 goodwill127,699 127,699 127,699 97,852 56,828
Less other intangible assets, net23,922 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 mortgage625,965 644,267 666,184 539,555 491,667
Agricultural and agricultural real estate489,387 480,883 471,271 471,870 469,381
Consumer425,582 428,730 417,114 386,867 379,903
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 rate29.02% 32.37% 33.10% 23.03% 25.32%
Full time equivalent employees1,846 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 losses5,328 2,118 2,067 2,171 3,181
Charge-offs(3,283) (2,951) (1,605) (1,837) (2,439)
Recoveries852 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 payments105 639 1,181
Other real estate owned10,740 11,003 11,338 11,524 17,041
Other repossessed assets821 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 loans10,884 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 loans1.06% 1.04% 0.88% 0.79% 0.73%
Ratio of nonperforming assets to total assets0.85% 0.84% 0.73% 0.67% 0.76%
Annualized ratio of net loan charge-offs to average loans0.17% 0.01% 0.08% 0.05% 0.14%
Allowance for loan losses as a percent of loans1.00% 0.94% 0.90% 0.97% 1.01%
Allowance for loan losses as a percent of nonperforming loans94.39% 90.72% 102.79% 122.77% 139.54%
Loans delinquent 30-89 days as a percent of total loans0.40% 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 securities1,888,598 13,636 2.87 1,541,019 10,591 2.73
Interest bearing deposits7,026 6 0.34 11,567 4 0.14
Federal funds sold1,409 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 mortgage717,374 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
Consumer426,083 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 loans5,485,827 71,265 5.17 4,607,877 59,260 5.10
Total earning assets7,382,860 84,908 4.58% 6,161,495 69,856 4.50%
Nonearning Assets789,823 564,701
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 over399,498 813 0.81 337,163 741 0.87
Other time deposits570,445 1,122 0.78 622,110 1,461 0.93
Short-term borrowings258,783 235 0.36 362,094 228 0.25
Other borrowings298,020 3,770 5.03 298,875 3,549 4.71
Total interest bearing liabilities5,224,172 8,006 0.61% 4,491,089 7,544 0.67%
Noninterest Bearing Liabilities
Noninterest bearing deposits2,171,965 1,593,298
Accrued interest and other liabilities84,142 59,712
Total noninterest bearing liabilities2,256,107 1,653,010
Stockholders' Equity692,404 582,097
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 assets70.76% 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 securities1,904,355 41,209 2.89 1,601,650 33,370 2.79
Interest bearing deposits9,785 13 0.18 10,541 11 0.14
Federal funds sold12,509 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 mortgage751,694 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
Consumer422,869 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 loans5,442,207 211,876 5.20 4,413,859 169,816 5.14
Total earning assets7,368,856 253,110 4.59% 6,030,612 203,200 4.50%
Nonearning Assets767,636 572,473
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 over439,609 2,417 0.73 343,369 2,373 0.92
Other time deposits599,745 3,790 0.84 570,446 4,383 1.03
Short-term borrowings314,367 1,083 0.46 343,537 638 0.25
Other borrowings281,617 10,918 5.18 338,307 12,117 4.79
Total interest bearing liabilities5,286,708 24,196 0.61% 4,447,165 24,513 0.74%
Noninterest Bearing Liabilities
Noninterest bearing deposits2,084,379 1,531,450
Accrued interest and other liabilities78,093 58,354
Total noninterest bearing liabilities2,162,472 1,589,804
Stockholders' Equity687,312 566,116
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 assets71.74% 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
9/30/20166/30/20163/31/201612/31/20159/30/2015
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 & Trust1,318,203 1,321,113 1,304,886 1,336,004 1,282,784
Wisconsin Bank & Trust1,068,288 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 Company862,767 843,069 872,274 902,918 845,067
Illinois Bank & Trust748,801 742,697 718,074 757,478 769,170
Premier Valley Bank635,620 629,423 751,137 765,451
Arizona Bank & Trust574,561 577,002 558,369 591,066 599,119
Rocky Mountain Bank481,346 473,583 479,010 491,522 501,093
Minnesota Bank & Trust238,745 230,004 220,955 214,303 188,633
Total Portfolio Loans
Dubuque Bank and Trust Company$906,347 $928,869 $941,683 $956,517 $953,273
New Mexico Bank & Trust917,679 870,109 815,739 794,744 777,433
Wisconsin Bank & Trust711,714 732,503 758,789 793,508 844,557
Centennial Bank and Trust(1)638,006 668,547 683,085 101,449 94,127
Morrill & Janes Bank and Trust Company538,666 522,518 536,738 539,198 527,217
Illinois Bank & Trust469,236 466,983 465,783 465,937 473,859
Premier Valley Bank354,610 376,275 376,840 383,929
Arizona Bank & Trust385,926 390,078 402,431 444,501 444,916
Rocky Mountain Bank357,346 362,475 364,189 370,440 380,304
Minnesota Bank & Trust139,581 144,009 137,412 134,137 128,700
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 & Trust1,101,550 1,062,410 1,066,076 1,085,052 1,047,358
Wisconsin Bank & Trust889,957 911,915 921,071 974,001 904,803
Centennial Bank and Trust(1)767,128 775,417 779,607 128,759 139,826
Morrill & Janes Bank and Trust Company676,176 696,073 698,365 713,589 650,123
Illinois Bank & Trust671,104 653,582 629,235 631,010 641,024
Premier Valley Bank520,814 514,522 635,188 647,022
Arizona Bank & Trust493,331 497,599 468,312 500,490 491,254
Rocky Mountain Bank420,581 405,888 409,787 417,426 428,234
Minnesota Bank & Trust214,651 207,228 200,343 194,373 163,291
Net Income (Loss)
Dubuque Bank and Trust Company$5,112 $4,475 $6,073 $3,587 $4,477
New Mexico Bank & Trust3,824 5,642 4,094 2,576 3,220
Wisconsin Bank & Trust3,368 3,399 3,379 2,443 3,886
Centennial Bank and Trust(1)925 256 824 62 (6)
Morrill & Janes Bank and Trust Company1,707 2,133 2,525 1,096 2,024
Illinois Bank & Trust2,179 2,397 2,027 574 1,877
Premier Valley Bank1,804 1,695 1,960 1,008
Arizona Bank & Trust2,034 2,121 1,841 968 1,254
Rocky Mountain Bank1,456 1,484 1,064 1,506 1,471
Minnesota Bank & Trust675 559 531 166 411
(1) Formerly known as Summit Bank & Trust.

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

Source:Heartland Financial USA, Inc.