×

Heartland Financial USA, Inc. Reports 2016 Fourth Quarter and Annual Results

Highlights

  • Quarterly net income available to common stockholders of $19.1 million, a 33% increase from the fourth quarter of the prior year
  • Record annual net income available to common stockholders of $80.1 million, a 35% increase from the prior year
  • Diluted earnings per common share of $0.74 for the quarter, a 10% increase from the fourth quarter of the prior year, and $3.22 for the year, a 14% increase from the prior year
  • Net interest margin of 3.96% for the quarter, fully tax-equivalent (non-GAAP)(1) of 4.14%
  • Net interest margin of 3.95% for the year, fully tax-equivalent (non-GAAP)(1) of 4.13%
  • Return on average common equity of 10.48% for the quarter and 11.80% for the year
  • Return on average tangible common equity (non-GAAP)(2) of 13.24% for the quarter and 15.15% for the year
  • Completed offering of 1,379,690 shares of common stock with net proceeds of $49.7 million
  • Announced agreement to acquire Founders Bancorp of San Luis Obispo, CA
  • Declared and paid a special dividend of $0.10 per common share

Quarter Ended
December 31,
Year Ended
December 31,
2016 2015 2016 2015
Net income available to common stockholders (in millions) $19.1 $14.4 $80.1 $59.2
Diluted earnings per common share 0.74 0.67 3.22 2.83
Return on average assets 0.92% 0.79% 0.98% 0.88%
Return on average common equity 10.48 10.69 11.80 11.92
Return on average tangible common equity (non-GAAP)(2) 13.24 12.79 15.15 13.90
Net interest margin 3.96 3.82 3.95 3.80
Net interest margin, fully tax-equivalent (non-GAAP)(1) 4.14 3.99 4.13 3.97


"Heartland just completed its best year on record with net income available to common stockholders of $80.1 million, a 35 percent increase over 2015, with earnings per share growing by 14 percent."

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

(1) Refer to the "Reconciliation of Annualized Net Interest Margin, Fully Tax-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, Jan. 30, 2017 (GLOBE NEWSWIRE) -- Heartland Financial USA, Inc. (NASDAQ:HTLF) today reported net income available to common stockholders of $19.1 million, or $0.74 per diluted common share, for the quarter ended December 31, 2016, compared to $14.4 million, or $0.67 per diluted common share, for the fourth quarter of 2015. Return on average common equity was 10.48% and return on average assets was 0.92% for the fourth quarter of 2016, compared to 10.69% and 0.79%, respectively, for the same quarter in 2015.

Net income available to common stockholders for the year 2016 was $80.1 million, or $3.22 per diluted common share, compared to $59.2 million, or $2.83 per diluted common share, recorded during the year 2015. Return on average common equity was 11.80% and return on average assets was 0.98% for the year 2016, compared to 11.92% and 0.88%, respectively, for the same period in 2015.

Commenting on Heartland’s results for 2016, Lynn B. Fuller, Heartland’s chairman and chief executive officer said, "Heartland just completed its best year on record with net income available to common stockholders of $80.1 million, a 35 percent increase over 2015, with earnings per share growing by 14 percent."

On October 29, 2016, Heartland entered into a definitive merger agreement for the acquisition of Founders Bancorp, parent company of Founders Community Bank, based in San Luis Obispo, California. The transaction is valued at approximately $29.1 million, subject to adjustment. Of the merger consideration, 70% will be in the form of shares of Heartland common stock, and 30% will be in cash. As of September 30, 2016, Founders Community Bank had total assets of $198.5 million, which includes gross loans of $106.6 million and total deposits of $180.5 million. The closing of the acquisition is subject to customary closing conditions, including approvals by the Founders Bancorp shareholders and banking regulators, and is expected to occur in the first quarter of 2017. Simultaneous with the close, Founders Community Bank will be merged into Heartland's Premier Valley Bank subsidiary. Heartland expects the acquisition to be accretive to its earnings per share during 2018.

On November 8, 2016, Heartland closed its sale of 1,379,690 shares of the its common stock pursuant to an underwriting agreement with Raymond James & Associates, Inc. as underwriter, providing for the offer and sale of the shares in a firm commitment underwritten public offering. The net proceeds from this offering were approximately $49.7 million. Heartland is using the net proceeds from this offering for general corporate purposes, which may include, among other things, working capital, debt repayment or financing potential acquisitions.

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

Net interest margin, expressed as a percentage of average earning assets, was 3.96% (4.14% on a fully tax-equivalent basis) during the fourth quarter of 2016, compared to 3.97% (4.14% on a fully tax-equivalent basis) during the third quarter of 2016 and 3.82% (3.99% on a fully tax-equivalent basis) during the fourth quarter of 2015.

Fuller said, "Throughout the year, we were pleased to see tax-equivalent net interest margin maintained nicely above the key 4 percent level. Despite continued pressure from a very low interest rate environment, we continue to find opportunities to increase asset yields while reducing our funding costs."

Interest income for the fourth quarter of 2016 was $82.8 million, an increase of $12.6 million or 18%, compared to the $70.2 million recorded in the fourth quarter of 2015. The tax-equivalent adjustment, which accounts for income taxes saved on the interest earned on nontaxable securities and loans, was $3.5 million for the fourth quarter of 2016 and $2.8 million for the fourth quarter of 2015. With these adjustments, interest income on a tax-equivalent basis was $86.3 million for the fourth quarter of 2016, an increase of $13.3 million or 18%, compared to $73.0 million for the fourth quarter of 2015. The increase in interest income in the fourth quarter of 2016, as compared to the fourth quarter of 2015, was primarily due to an increase in average earning assets, which totaled $7.55 billion during the fourth quarter of 2016 compared to $6.51 billion during the fourth quarter of 2015, a $1.04 billion or 16% 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 fourth quarter of 2016 was $7.6 million, an increase of $160,000 or 2% from $7.5 million in the fourth quarter of 2015. Average interest bearing liabilities increased $424.6 million or 9% for the quarter ended December 31, 2016, from $4.78 billion in the same quarter in 2015, while the average interest rate paid on Heartland's interest bearing deposits and borrowings declined 4 basis points from 0.62% in the fourth quarter of 2015 to 0.58% in the fourth quarter of 2016. The average interest rate paid on savings deposits was 0.21% during the fourth quarter of 2016 compared to 0.20% during the fourth quarter of 2015, and the average interest rate paid on time deposits was 0.77% during the fourth quarter of 2016 compared to 0.82% during the fourth quarter of 2015.

Net interest income increased $12.5 million or 20% to $75.2 million in the fourth quarter of 2016 from the $62.7 million recorded in the fourth quarter of 2015. After the tax-equivalent adjustment discussed above, net interest income on a tax-equivalent basis totaled $78.7 million during the fourth quarter of 2016, an increase of $13.1 million or 20% from the $65.5 million recorded during the fourth quarter of 2015.

Noninterest Income and Noninterest Expenses Increase

Noninterest income totaled $24.5 million during the fourth quarter of 2016 compared to $24.4 million during the fourth quarter of 2015. Service charges and fees totaled $8.1 million during the fourth quarter of 2016 compared to $6.7 million during the fourth quarter of 2015, an increase of $1.5 million or 22%. 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 $5.8 million during the fourth quarter of 2016 compared to $7.1 million during the fourth quarter of 2015, a decrease of $1.2 million or 18%. Net securities gains totaled $1.6 million during the fourth quarter of 2016 compared to $3.9 million during the fourth quarter of 2015, a decrease of $2.3 million or 59%.

For the fourth quarter of 2016, noninterest expenses totaled $69.9 million compared to $66.0 million during the fourth quarter of 2015, an increase of $3.9 million or 6%. The category with the most significant increase was salaries and employee benefits, which increased $5.5 million or 16%. Other categories experiencing increases, primarily attributable to the recent acquisitions, were occupancy, furniture and equipment, professional fees and intangible assets amortization.

Heartland's effective tax rate was 30.38% for the fourth quarter of 2016 compared to 23.03% for the fourth quarter of 2015. Included in Heartland's income taxes for the fourth quarter of 2015 were federal historic rehabilitation tax credits totaling $1.4 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 fourth quarter of 2016 compared to $145,000 during the fourth 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 23.69% during the fourth quarter of 2016 compared to 27.70% during the fourth quarter of 2015.

Loans and Deposits Increase

Total assets were $8.25 billion at December 31, 2016, an increase of $552.3 million or 7% from $7.70 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 26% of total assets at December 31, 2016, compared to 24% at December 31, 2015.

Total loans held to maturity were $5.35 billion at December 31, 2016, compared to $5.00 billion at year-end 2015, an increase of $350.2 million or 7%. 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 $87.0 million during the fourth quarter of 2016 and decreased $231.2 million during the year 2016.

Total deposits were $6.85 billion as of December 31, 2016, compared to $6.41 billion at year-end 2015, an increase of $441.6 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 $65.3 million during the fourth quarter of 2016 and $206.5 million during the year 2016. Demand deposits totaled $2.20 billion at December 31, 2016, an increase of $287.9 million or 15% 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 decreased $36.7 million during the fourth quarter of 2016 and increased $123.6 million during the year 2016.

Fuller said, "Though deposit growth has slowed, we continue to be pleased with the favorable shift in deposit mix as non-time deposits represent 87 percent of total deposits."

Nonperforming Assets Increase; Provision for Loan Losses Remains Constant

Nonperforming assets were $74.8 million or 0.91% of total assets at December 31, 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 $19.6 million or 38% since year-end 2015. Nonperforming loans were $64.4 million or 1.20% of total loans at December 31, 2016, compared to $39.7 million or 0.79% of total loans at December 31, 2015. Contributing to the increase in nonperforming loans during 2016 were two loans totaling $20.7 million at Dubuque Bank and Trust Company, both of which are in the process of collection. Based upon the current valuation of the collateral securing each loan relationship, we anticipate no additional provision for loan losses on either of these credits.

The allowance for loan losses at December 31, 2016, was 1.02% of loans and 84.37% 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 $2.2 million for both the fourth quarter of 2016 and 2015.

Conference Call Details
Heartland will host a conference call for investors at 5:00 p.m. EST 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 January 29, 2018, 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
December 31,
For the Year Ended
December 31,
2016 2015 2016 2015
Interest Income
Interest and fees on loans $69,848 $59,905 $278,128 $227,106
Interest on securities:
Taxable 8,480 6,917 32,858 26,646
Nontaxable 4,292 3,311 15,085 12,178
Interest on federal funds sold 21 12 24
Interest on deposits in other financial institutions 157 3 396 14
Total Interest Income 82,777 70,157 326,479 265,968
Interest Expense
Interest on deposits 3,744 3,772 15,939 15,530
Interest on short-term borrowings 119 200 1,202 838
Interest on other borrowings 3,754 3,485 14,672 15,602
Total Interest Expense 7,617 7,457 31,813 31,970
Net Interest Income 75,160 62,700 294,666 233,998
Provision for loan losses 2,181 2,171 11,694 12,697
Net Interest Income After Provision for Loan Losses 72,979 60,529 282,972 221,301
Noninterest Income
Service charges and fees 8,128 6,654 31,590 24,308
Loan servicing income 1,068 1,704 4,501 5,276
Trust fees 3,718 3,230 14,845 14,281
Brokerage and insurance commissions 955 917 3,869 3,789
Securities gains, net 1,608 3,913 11,340 13,143
Impairment loss on securities (769) (769)
Gains on sale of loans held for sale 5,840 7,085 39,634 45,249
Valuation adjustment on commercial servicing rights 8 (33)
Income on bank owned life insurance 542 644 2,275 1,999
Other noninterest income 2,588 1,003 5,580 3,409
Total Noninterest Income 24,455 24,381 113,601 110,685
Noninterest Expense
Salaries and employee benefits 39,115 33,583 163,547 144,105
Occupancy 5,076 4,334 20,398 16,928
Furniture and equipment 2,944 2,344 10,245 8,747
Professional fees 7,195 6,503 27,676 23,047
FDIC insurance assessments 717 886 4,185 3,759
Advertising 2,274 1,624 6,448 5,465
Core deposit intangible amortization 1,147 898 5,630 2,978
Other real estate and loan collection expenses 572 723 2,443 2,437
(Gain)/loss on sales/valuations of assets, net 414 4,238 1,478 6,821
Other noninterest expenses 10,458 10,821 37,618 36,759
Total Noninterest Expense 69,912 65,954 279,668 251,046
Income Before Income Taxes 27,522 18,956 116,905 80,940
Income taxes 8,360 4,365 36,556 20,898
Net Income 19,162 14,591 80,349 60,042
Preferred dividends and discount (19) (204) (292) (817)
Interest expense on convertible preferred debt 3 51
Net Income Available to Common Stockholders $19,146 $14,387 $80,108 $59,225
Earnings per common share-diluted $0.74 $0.67 $3.22 $2.83
Weighted average shares outstanding-diluted 25,800,472 21,491,699 24,873,430 20,929,385


HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
For the Quarter Ended
12/31/2016 9/30/2016 6/30/2016 3/31/2016 12/31/2015
Interest Income
Interest and fees on loans$69,848 $70,046 $69,809 $68,425 $59,905
Interest on securities:
Taxable8,480 7,831 7,903 8,644 6,917
Nontaxable4,292 3,717 3,566 3,510 3,311
Interest on federal funds sold 1 1 10 21
Interest on deposits in other financial institutions157 92 52 95 3
Total Interest Income82,777 81,687 81,331 80,684 70,157
Interest Expense
Interest on deposits3,744 4,001 4,021 4,173 3,772
Interest on short-term borrowings119 235 519 329 200
Interest on other borrowings3,754 3,770 3,673 3,475 3,485
Total Interest Expense7,617 8,006 8,213 7,977 7,457
Net Interest Income75,160 73,681 73,118 72,707 62,700
Provision for loan losses2,181 5,328 2,118 2,067 2,171
Net Interest Income After Provision for Loan Losses72,979 68,353 71,000 70,640 60,529
Noninterest Income
Service charges and fees8,128 8,278 8,022 7,162 6,654
Loan servicing income1,068 873 1,292 1,268 1,704
Trust fees3,718 3,689 3,625 3,813 3,230
Brokerage and insurance commissions955 1,006 886 1,022 917
Securities gains, net1,608 1,584 4,622 3,526 3,913
Impairment loss on securities (769)
Gains on sale of loans held for sale5,840 11,459 11,270 11,065 7,085
Valuation adjustment on commercial servicing rights8 5 (46)
Income on bank owned life insurance542 620 591 522 644
Other noninterest income2,588 1,028 764 1,200 1,003
Total Noninterest Income24,455 28,542 31,026 29,578 24,381
Noninterest Expense
Salaries and employee benefits39,115 40,733 41,985 41,714 33,583
Occupancy5,076 5,099 5,220 5,003 4,334
Furniture and equipment2,944 2,746 2,442 2,113 2,344
Professional fees7,195 5,985 7,486 7,010 6,503
FDIC insurance assessments717 1,180 1,120 1,168 886
Advertising2,274 1,339 1,551 1,284 1,624
Core deposit intangible amortization1,147 1,291 1,297 1,895 898
Other real estate and loan collection expenses572 640 659 572 723
(Gain)/loss on sales/valuations of assets, net414 794 (43) 313 4,238
Other noninterest expenses10,458 8,620 9,303 9,237 10,821
Total Noninterest Expense69,912 68,427 71,020 70,309 65,954
Income Before Income Taxes27,522 28,468 31,006 29,909 18,956
Income taxes8,360 8,260 10,036 9,900 4,365
Net Income19,162 20,208 20,970 20,009 14,591
Preferred dividends and discount(19) (53) (52) (168) (204)
Interest expense on convertible preferred debt3 17 31
Net Income Available to Common Stockholders$19,146 $20,172 $20,949 $19,841 $14,387
Earnings per common share-diluted$0.74 $0.81 $0.84 $0.82 $0.67
Weighted average shares outstanding-diluted25,800,472 24,922,946 24,974,995 24,117,384 21,491,699


HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
As Of
12/31/2016 9/30/2016 6/30/2016 3/31/2016 12/31/2015
Assets
Cash and due from banks$153,379 $196,234 $222,718 $124,060 $237,841
Federal funds sold and other short-term investments5,345 5,855 7,232 9,168 20,958
Cash and cash equivalents158,724 202,089 229,950 133,228 258,799
Time deposits in other financial institutions2,105 2,105 2,105 2,355 2,355
Securities:
Available for sale, at fair value1,845,864 1,655,696 1,566,592 1,690,516 1,578,434
Held to maturity, at cost263,662 265,302 270,423 271,300 279,117
Other investments, at cost21,560 22,082 22,680 22,325 21,443
Loans held for sale61,261 78,317 82,538 76,565 74,783
Loans:
Held to maturity5,351,719 5,438,715 5,482,258 5,503,005 5,001,486
Allowance for loan losses(54,324) (54,653) (51,756) (49,738) (48,685)
Loans, net5,297,395 5,384,062 5,430,502 5,453,267 4,952,801
Premises, furniture and equipment, net164,028 165,841 168,701 164,788 150,148
Goodwill127,699 127,699 127,699 127,699 97,852
Core deposit intangibles, net22,775 23,922 25,213 26,510 22,019
Servicing rights, net35,778 35,906 35,654 34,910 34,926
Cash surrender value on life insurance112,615 112,060 111,425 110,834 110,297
Other real estate, net9,744 10,740 11,003 11,338 11,524
Other assets123,869 116,394 119,916 128,144 100,256
Total Assets$8,247,079 $8,202,215 $8,204,401 $8,253,779 $7,694,754
Liabilities and Equity
Liabilities
Deposits:
Demand$2,202,036 $2,238,736 $2,149,911 $2,079,521 $1,914,141
Savings3,788,089 3,753,300 3,691,791 3,702,431 3,367,479
Time857,286 920,657 995,870 1,142,368 1,124,203
Total deposits6,847,411 6,912,693 6,837,572 6,924,320 6,405,823
Short-term borrowings306,459 214,105 303,707 325,741 293,898
Other borrowings288,534 294,493 296,895 265,760 263,214
Accrued expenses and other liabilities63,759 76,536 78,264 68,415 68,646
Total Liabilities7,506,163 7,497,827 7,516,438 7,584,236 7,031,581
Stockholders' Equity
Preferred equity1,357 1,357 3,777 3,777 81,698
Common stock26,120 24,683 24,544 24,520 22,436
Capital surplus328,376 279,316 274,682 273,310 216,436
Retained earnings416,109 402,179 384,479 366,014 348,630
Accumulated other comprehensive income (loss)(31,046) (3,079) 513 1,924 (6,027)
Treasury stock at cost (68) (32) (2)
Total Equity740,916 704,388 687,963 669,543 663,173
Total Liabilities and Equity$8,247,079 $8,202,215 $8,204,401 $8,253,779 $7,694,754


HEARTLAND FINANCIAL USA, INC
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
For the Quarter Ended
December 31,
For the Year Ended
December 31,
2016 2015 2016 2015
Average Balances
Assets$8,280,042 $7,241,104 $8,172,576 $6,763,901
Loans, net of unearned5,473,001 4,827,844 5,488,112 4,551,008
Deposits6,928,978 5,938,905 6,813,781 5,458,623
Earning assets7,551,997 6,512,565 7,455,217 6,152,090
Interest bearing liabilities5,206,393 4,781,797 5,266,519 4,531,510
Common stockholders' equity726,455 533,845 678,989 496,877
Total stockholders' equity727,812 615,543 697,493 578,575
Tangible common stockholders' equity (non-GAAP)(1)575,412 446,370 528,712 425,992
Key Performance Ratios
Annualized return on average assets0.92% 0.79% 0.98% 0.88%
Annualized return on average common equity (GAAP)10.48% 10.69% 11.80% 11.92%
Annualized return on average common tangible equity (non-GAAP)(2)13.24% 12.79% 15.15% 13.90%
Annualized ratio of net charge-offs to average loans0.18% 0.05% 0.11% 0.12%
Annualized net interest margin (GAAP)3.96% 3.82% 3.95% 3.80%
Annualized net interest margin, fully tax-equivalent (non-GAAP)(3)4.14% 3.99% 4.13% 3.97%
Efficiency ratio, fully tax-equivalent (4)66.29% 68.53% 66.25% 69.16%
Reconciliation of Return on Average Common Tangible Equity (non-GAAP)(5)
Net income available to common shareholders (GAAP)$19,146 $14,387 $80,108 $59,225
Average common stockholders' equity (GAAP)$726,455 $533,845 $678,989 $496,877
Less average goodwill127,699 70,222 125,724 56,781
Less average core deposit intangibles, net23,344 17,253 24,553 14,153
Average common tangible equity (non-GAAP)$575,412 $446,370 $528,712 $425,943
Annualized return on average common equity (GAAP)10.48% 10.69% 11.80% 11.92%
Annualized return on average common tangible equity (non-GAAP)13.24% 12.79% 15.15% 13.90%
Reconciliation of Annualized Net Interest Margin,
Fully Tax-Equivalent (non-GAAP)(6)
Net Interest Income (GAAP)$75,160 $62,700 $294,666 $233,998
Plus tax-equivalent adjustment(7)3,511 2,827 12,919 10,216
Net interest income - tax-equivalent (non-GAAP)

$78,671 $65,527 $307,585 $244,214
Average earning assets$7,551,997 $6,512,565 $7,455,217 $6,152,090
Annualized net interest margin (GAAP)3.96% 3.82% 3.95% 3.80%
Annualized net interest margin, fully tax-equivalent (non-GAAP)
4.14% 3.99% 4.13% 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.
(3) Refer to the "Reconciliation of Annualized Net Interest Margin, Fully Tax-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 tax-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
12/31/2016 9/30/2016 6/30/2016 3/31/2016 12/31/2015
Average Balances
Assets$8,280,042 $8,172,683 $8,211,326 $8,025,070 $7,241,104
Loans, net of unearned5,473,001 5,538,088 5,582,878 5,358,102 4,827,844
Deposits6,928,978 6,839,334 6,806,259 6,679,010 5,938,905
Earning assets7,551,997 7,382,860 7,446,849 7,276,703 6,512,565
Interest bearing liabilities5,206,393 5,224,172 5,363,477 5,273,164 4,781,797
Common stockholders' equity726,455 689,637 669,930 629,294 533,845
Total stockholders' equity727,812 692,404 673,707 695,771 615,543
Tangible common stockholders' equity(1)575,412 537,375 516,347 485,108 446,370
Key Performance Ratios
Annualized return on average assets0.92% 0.98% 1.03% 0.99% 0.79%
Annualized return on average common equity (GAAP)10.48% 11.64% 12.58% 12.68% 10.69%
Annualized return on average common tangible equity (non-GAAP)(2)13.24% 14.93% 16.32% 16.45% 12.79%
Annualized ratio of net charge-offs to average loans0.18% 0.17% 0.01% 0.08% 0.05%
Annualized net interest margin (GAAP)3.96% 3.97% 3.95% 4.02% 3.82%
Annualized net interest margin, fully tax-equivalent (non-GAAP)(3)4.14% 4.14% 4.12% 4.19% 3.99%
Efficiency ratio, fully tax-equivalent(4)66.29% 63.88% 67.95% 66.90% 68.53%
Reconciliation of Return on Average Common Tangible Equity (non-GAAP)(5)
Net income available to common shareholders (GAAP)$19,146 $20,172 $20,949 $19,841 $14,387
Average common stockholders' equity (GAAP)$726,455 $689,637 $669,930 $629,294 $533,845
Less average goodwill127,699 127,699 127,699 119,750 70,222
Less average core deposit intangibles, net23,344 24,563 25,884 24,436 17,253
Average common tangible equity (non-GAAP)$575,412 $537,375 $516,347 $485,108 $446,370
Annualized return on average common equity (GAAP)10.48% 11.64% 12.58% 12.68% 10.69%
Annualized return on average common tangible equity (non-GAAP)13.24% 14.93% 16.32% 16.45% 12.79%
Reconciliation of Annualized Net Interest Margin, Fully Tax-Equivalent (non-GAAP)(6)
Net Interest Income (GAAP)$75,160 $73,681 $73,118 $72,707 $62,700
Plus tax-equivalent adjustment(7)3,511 3,221 3,146 3,041 2,827
Net interest income, fully tax-equivalent (non-GAAP)$78,671 $76,902 $76,264 $75,748 $65,527
Average earning assets$7,551,997 $7,382,860 $7,446,849 $7,276,703 $6,512,565
Annualized net interest margin (GAAP)3.96% 3.97% 3.95% 4.02% 3.82%
Annualized net interest margin, fully tax-equivalent (non-GAAP)4.14% 4.14% 4.12% 4.19% 3.99%
(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 Tax-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 tax-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
December 31,
For the Year Ended
December 31,
Reconciliation of Non-GAAP Measure-Efficiency Ratio(1)2016 2015 2016 2015
Net interest income$75,160 $62,700 $294,666 $233,998
Tax-equivalent adjustment(1)3,511 2,827 12,919 10,216
Fully tax-equivalent net interest income78,671 65,527 307,585 244,214
Noninterest income24,455 24,381 113,601 110,685
Securities gains, net(1,608) (3,913) (11,340) (13,143)
Impairment loss on securities 769 769
Adjusted income$101,518 $86,764 $409,846 $342,525
Total noninterest expenses$69,912 $65,954 $279,668 $251,046
Less:
Core deposit intangible amortization1,147 898 5,630 2,978
Partnership investment in historic rehabilitation tax credits1,051 1,362 1,051 4,357
(Gain)/loss on sales/valuations of assets, net414 4,238 1,478 6,821
Adjusted noninterest expenses$67,300 $59,456 $271,509 $236,890
Efficiency ratio, fully tax-equivalent (non-GAAP)66.29% 68.53% 66.25% 69.16%
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
12/31/2016 9/30/2016 6/30/2016 3/31/2016 12/31/2015
Net interest income$75,160 $73,681 $73,118 $72,707 $62,700
Tax-equivalent adjustment(2)3,511 3,221 3,146 3,041 2,827
Fully tax-equivalent net interest income78,671 76,902 76,264 75,748 65,527
Noninterest income24,455 28,542 31,026 29,578 24,381
Securities gains, net(1,608) (1,584) (4,622) (3,526) (3,913)
Impairment loss on securities 769
Adjusted income$101,518 $103,860 $102,668 $101,800 $86,764
Total noninterest expenses$69,912 $68,427 $71,020 $70,309 $65,954
Less:
Core deposit intangible amortization1,147 1,291 1,297 1,895 898
Partnership investment in historic rehabilitation tax credits1,051 1,362
(Gain)/loss on sales/valuation of assets, net414 794 (43) 313 4,238
Adjusted noninterest expenses$67,300 $66,342 $69,766 $68,101 $59,456
Efficiency ratio, fully tax-equivalent (non-GAAP)66.29% 63.88% 67.95% 66.90% 68.53%
(1) Efficiency ratio, fully tax-equivalent, expresses noninterest expenses as a percentage of fully tax-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
12/31/2016 9/30/2016 6/30/2016 3/31/2016 12/31/2015
Common Share Data
Book value per common share (GAAP)$28.31 $28.48 $27.88 $27.15 $25.92
Tangible book value per common share (non-GAAP)(1)$22.55 $22.34 $21.65 $20.86 $20.57
ASC 320 effect on book value per common share$(1.15) $0.03 $0.21 $0.23 $(0.18)
Common shares outstanding, net of treasury stock26,119,929 24,681,380 24,543,376 24,519,928 22,435,693
Tangible capital ratio (non-GAAP)(2)7.28% 6.85% 6.60% 6.32% 6.09%
Reconciliation of Tangible Book Value Per Common Share (non-GAAP)(3)
Common stockholders' equity (GAAP)$739,559 $703,031 $684,186 $665,766 $581,475
Less goodwill127,699 127,699 127,699 127,699 97,852
Less core deposit intangibles, net22,775 23,922 25,213 26,510 22,019
Tangible common stockholders' equity (non-GAAP)$589,085 $551,410 $531,274 $511,557 $461,604
Common shares outstanding, net of treasury stock26,119,929 24,681,380 24,543,376 24,519,928 22,435,693
Book value per common share (GAAP)$28.31 $28.48 $27.88 $27.15 $25.92
Tangible book value per common share (non-GAAP)$22.55 $22.34 $21.65 $20.86 $20.57
Reconciliation of Tangible Capital Ratio (non-GAAP)(4)
Total assets (GAAP)$8,247,079 $8,202,215 $8,204,401 $8,253,779 $7,694,754
Less goodwill127,699 127,699 127,699 127,699 97,852
Less core deposit intangibles, net22,775 23,922 25,213 26,510 22,019
Total tangible assets (non-GAAP)$8,096,605 $8,050,594 $8,051,489 $8,099,570 $7,574,883
Tangible capital ratio (non-GAAP)7.28% 6.85% 6.60% 6.32% 6.09%
Loan Data
Loans held to maturity:
Commercial and commercial real estate$3,825,847 $3,900,612 $3,930,879 $3,951,839 $3,605,574
Residential mortgage617,924 625,965 644,267 666,184 539,555
Agricultural and agricultural real estate489,318 489,387 480,883 471,271 471,870
Consumer420,613 425,582 428,730 417,114 386,867
Unearned discount and deferred loan fees(1,983) (2,831) (2,501) (3,403) (2,380)
Total loans held to maturity$5,351,719 $5,438,715 $5,482,258 $5,503,005 $5,001,486
Other Selected Trend Information
Effective tax rate30.38% 29.02% 32.37% 33.10% 23.03%
Full time equivalent employees1,864 1,846 1,888 1,907 1,799
Total Residential Mortgage Loan Applications$304,018 $445,107 $440,907 $406,999 $307,163
Residential Mortgage Loans Originated$278,065 $324,337 $324,633 $238,266 $258,939
Residential Mortgage Loans Sold$269,133 $315,917 $302,448 $220,381 $260,189
Residential Mortgage Loan Servicing Portfolio$4,308,580 $4,259,459 $4,203,429 $4,112,519 $4,057,861
(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 core deposit intangibles, 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 core deposit intangibles, net divided by total assets less goodwill and core deposit intangibles, 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
12/31/2016 9/30/2016 6/30/2016 3/31/2016 12/31/2015
Allowance for Loan Losses
Balance, beginning of period$54,653 $51,756 $49,738 $48,685 $47,105
Provision for loan losses2,181 5,328 2,118 2,067 2,171
Charge-offs(3,555) (3,283) (2,951) (1,605) (1,837)
Recoveries1,045 852 2,851 591 1,246
Balance, end of period$54,324 $54,653 $51,756 $49,738 $48,685
Asset Quality
Nonaccrual loans$64,299 $57,799 $57,053 $47,750 $39,655
Loans past due ninety days or more as to interest or principal payments86 105 639
Other real estate owned9,744 10,740 11,003 11,338 11,524
Other repossessed assets663 821 564 426 485
Total nonperforming assets$74,792 $69,465 $68,620 $60,153 $51,664
Performing troubled debt restructured loans$10,380 $10,281 $9,923 $10,711 $10,968
Nonperforming Assets Activity
Balance, beginning of period$69,465 $68,620 $60,153 $51,664 $51,425
Net loan charge offs(2,510) (2,431) (100) (1,014) (591)
New nonperforming loans23,035 10,884 19,994 12,171 9,686
Acquired nonperforming assets 3,516 4,956
Reduction of nonperforming loans(1)(13,707) (6,983) (10,313) (3,563) (6,768)
OREO/Repossessed assets sales proceeds(1,037) (343) (918) (2,411) (2,980)
OREO/Repossessed assets writedowns, net(274) (521) (337) (182) (3,909)
Net activity at Citizens Finance Co.(180) 239 141 (28) (155)
Balance, end of period$74,792 $69,465 $68,620 $60,153 $51,664
Asset Quality Ratios
Ratio of nonperforming loans to total loans1.20% 1.06% 1.04% 0.88% 0.79%
Ratio of nonperforming assets to total assets0.91% 0.85% 0.84% 0.73% 0.67%
Annualized ratio of net loan charge-offs to average loans0.18% 0.17% 0.01% 0.08% 0.05%
Allowance for loan losses as a percent of loans1.02% 1.00% 0.94% 0.90% 0.97%
Allowance for loan losses as a percent of nonperforming loans84.37% 94.39% 90.72% 102.79% 122.77%
Loans delinquent 30-89 days as a percent of total loans0.37% 0.40% 0.73% 0.45% 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
December 31, 2016 December 31, 2015
Average
Balance
Interest Rate Average
Balance
Interest Rate
Earning Assets
Securities:
Taxable$1,471,966 $8,480 2.29% $1,290,462 $6,917 2.13%
Nontaxable(1)539,347 6,603 4.87 387,015 5,094 5.22
Total securities2,011,313 15,083 2.98 1,677,477 12,011 2.84
Interest bearing deposits122,727 157 0.51 12,350 3 0.10
Federal funds sold398 42,614 21 0.20
Loans:(2)
Commercial and commercial real estate(1)3,864,826 48,124 4.95 3,395,242 40,588 4.74
Residential mortgage699,739 7,035 4.00 580,797 5,836 3.99
Agricultural and agricultural real estate(1)485,158 5,624 4.61 470,797 5,663 4.77
Consumer423,278 8,184 7.69 381,008 7,460 7.77
Fees on loans 2,081 1,402
Less: allowance for loan losses(55,442) (47,720)
Net loans5,417,559 71,048 5.22 4,780,124 60,949 5.06
Total earning assets7,551,997 86,288 4.55% 6,512,565 72,984 4.45%
Nonearning Assets728,045 728,539
Total Assets$8,280,042 $7,241,104
Interest Bearing Liabilities
Savings$3,767,398 $2,012 0.21% $3,118,115 $1,611 0.20%
Time, $100,000 and over380,701 761 0.80 334,254 779 0.92
Other time deposits512,874 971 0.75 711,622 1,382 0.77
Short-term borrowings252,175 119 0.19 325,613 200 0.24
Other borrowings293,245 3,754 5.09 292,193 3,485 4.73
Total interest bearing liabilities5,206,393 7,617 0.58% 4,781,797 7,457 0.62%
Noninterest Bearing Liabilities
Noninterest bearing deposits2,268,005 1,774,914
Accrued interest and other liabilities77,832 68,850
Total noninterest bearing liabilities2,345,837 1,843,764
Stockholders' Equity727,812 615,543
Total Liabilities and Stockholders' Equity$8,280,042 $7,241,104
Net interest income, fully tax-equivalent (non-GAAP)(1) $78,671 $65,527
Net interest spread(1) 3.97% 3.83%
Net interest income, fully tax-equivalent (non-GAAP) to total earning assets(3) 4.14% 3.99%
Interest bearing liabilities to earning assets68.94% 73.42%
(1) Computed on a tax-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 tax-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 Year Ended
December 31, 2016 December 31, 2015
Average
Balance
Interest Rate Average
Balance
Interest Rate
Earning Assets
Securities:
Taxable$1,466,062 $32,858 2.24% $1,272,573 $26,646 2.09%
Nontaxable(1)465,178 23,208 4.99 348,189 18,735 5.38
Total securities1,931,240 56,066 2.90 1,620,762 45,381 2.80
Interest bearing deposits78,503 396 0.50 10,997 14 0.13
Federal funds sold9,464 12 0.13 14,153 24 0.17
Loans: (2)
Commercial and commercial real estate(1)3,846,285 190,101 4.94 3,199,493 152,931 4.78
Residential mortgage738,634 30,168 4.08 542,364 21,982 4.05
Agricultural and agricultural real estate(1)480,221 22,576 4.70 444,808 21,498 4.83
Consumer422,972 32,636 7.72 364,343 28,936 7.94
Fees on loans 7,443 5,418
Less: allowance for loan losses(52,102) (44,830)
Net loans5,436,010 282,924 5.20 4,506,178 230,765 5.12
Total earning assets7,455,217 339,398 4.55% 6,152,090 276,184 4.49%
Nonearning Assets717,359 611,811
Total Assets$8,172,576 $6,763,901
Interest Bearing Liabilities
Savings$3,680,535 $8,000 0.22% $2,918,706 $6,613 0.23%
Time, $100,000 and over424,802 3,178 0.75 341,071 3,152 0.92
Other time deposits577,908 4,761 0.82 606,030 5,765 0.95
Short-term borrowings298,734 1,202 0.40 339,019 838 0.25
Other borrowings284,540 14,672 5.16 326,684 15,602 4.78
Total interest bearing liabilities5,266,519 31,813 0.60% 4,531,510 31,970 0.71%
Noninterest Bearing Liabilities
Noninterest bearing deposits2,130,536 1,592,816
Accrued interest and other liabilities78,028 61,000
Total noninterest bearing liabilities2,208,564 1,653,816
Stockholders' Equity697,493 578,575
Total Liabilities and Stockholders' Equity$8,172,576 $6,763,901
Net interest income, fully tax-equivalent (non-GAAP)(1) $307,585 $244,214
Net interest spread(1) 3.95% 3.78%
Net interest income, fully tax-equivalent (non-GAAP) to total earning assets(3) 4.13% 3.97%
Interest bearing liabilities to earning assets70.64% 73.66%
(1) Computed on a tax-equivalent basis using an effective tax rate of 35%.
(2) Nonaccrual loans are included in the average loans outstanding.
(3) Net interest margin, fully tax-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
12/31/20169/30/20166/30/20163/31/201612/31/2015
Total Assets
Dubuque Bank and Trust Company$1,497,775 $1,448,796 $1,473,461 $1,498,771 $1,617,322
New Mexico Bank & Trust1,374,647 1,318,203 1,321,113 1,304,886 1,336,004
Wisconsin Bank & Trust1,065,715 1,068,288 1,080,224 1,094,872 1,139,337
Centennial Bank and Trust(1)901,782 892,723 909,697 927,040 161,806
Morrill & Janes Bank and Trust Company863,544 862,767 843,069 872,274 902,918
Illinois Bank & Trust742,173 748,801 742,697 718,074 757,478
Premier Valley Bank640,684 635,620 629,423 751,137 765,451
Arizona Bank & Trust582,266 574,561 577,002 558,369 591,066
Rocky Mountain Bank477,063 481,346 473,583 479,010 491,522
Minnesota Bank & Trust229,114 238,745 230,004 220,955 214,303
Total Portfolio Loans
Dubuque Bank and Trust Company$905,242 $906,347 $928,869 $941,683 $956,517
New Mexico Bank & Trust924,249 917,679 870,109 815,739 794,744
Wisconsin Bank & Trust650,254 711,714 732,503 758,789 793,508
Centennial Bank and Trust(1)609,760 638,006 668,547 683,085 101,449
Morrill & Janes Bank and Trust Company548,544 538,666 522,518 536,738 539,198
Illinois Bank & Trust473,008 469,236 466,983 465,783 465,937
Premier Valley Bank348,879 354,610 376,275 376,840 383,929
Arizona Bank & Trust384,706 385,926 390,078 402,431 444,501
Rocky Mountain Bank347,839 357,346 362,475 364,189 370,440
Minnesota Bank & Trust144,098 139,581 144,009 137,412 134,137
Total Deposits
Dubuque Bank and Trust Company$1,231,016 $1,182,947 $1,159,942 $1,144,470 $1,209,074
New Mexico Bank & Trust1,091,436 1,101,550 1,062,410 1,066,076 1,085,052
Wisconsin Bank & Trust899,676 889,957 911,915 921,071 974,001
Centennial Bank and Trust(1)733,449 767,128 775,417 779,607 128,759
Morrill & Janes Bank and Trust Company738,036 676,176 696,073 698,365 713,589
Illinois Bank & Trust636,419 671,104 653,582 629,235 631,010
Premier Valley Bank510,142 520,814 514,522 635,188 647,022
Arizona Bank & Trust477,213 493,331 497,599 468,312 500,490
Rocky Mountain Bank414,344 420,581 405,888 409,787 417,426
Minnesota Bank & Trust194,368 214,651 207,228 200,343 194,373
Net Income
Dubuque Bank and Trust Company$806 $5,112 $4,475 $6,073 $3,587
New Mexico Bank & Trust4,061 3,824 5,642 4,094 2,576
Wisconsin Bank & Trust2,970 3,368 3,399 3,379 2,443
Centennial Bank and Trust(1)1,572 925 256 824 62
Morrill & Janes Bank and Trust Company2,519 1,707 2,133 2,525 1,096
Illinois Bank & Trust1,917 2,179 2,397 2,027 574
Premier Valley Bank2,969 1,804 1,695 1,960 1,008
Arizona Bank & Trust1,305 2,034 2,121 1,841 968
Rocky Mountain Bank1,229 1,456 1,484 1,064 1,506
Minnesota Bank & Trust888 675 559 531 166
(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.