Heartland Financial USA (HTLF) 8-K Regulation FD Disclosure

Exhibit 99.1

INVESTMENT PROFILE

A Quarterly Newsletter of Heartland Financial USA, Inc.

www.htlf.coml 1398 Central Ave., P.O. Box 778, Dubuque, Iowa 52004-0778
 

Volume 11, Issue 4 Fourth Quarter 2003   INVESTMENT PROFILE is published quarterly to keep current and potentialHeartlandstockholders informed of company activities and to provide an overview of the Company’s current financial performance. Community Banking Dubuque Bank & Trust Galena State Bank First Community Bank   Riverside Community Bank   Wisconsin Community Bank   New Mexico Bank & Trust Arizona Bank & Trust Consumer Finance Citizens Finance Investment Banking HTLF Capital Corp. Vehicle Leasing and Fleet Management ULTEA Contact John K. Schmidt (563) 589-1994 jschmidt@htlf.com

Highlights Net income from continuing operations increased 7% for the year ended December 31, 2003. Consistent with our stated goal of doubling earnings and assets every five to seven years, 2003 represented the fifth year of our latest plan. We are pleased to have achieved our asset goal, and expect to accomplish our earnings goal very early in 2004. Total assets surpassed $2 billion at year-end 2003 and annual earnings neared $18 million. Total loans and leases grew by $173 million or 15% since year-end 2002, while deposits grew by $155 million or 12%. Prepayment activity on our mortgage-backed securities portfolio continued to impact our net interest margin in the fourth quarter. Also, the negative carrying costs associated with the completion of a private placement offering of $20 million of 8.25% cumulative capital securities impacted our net interest margin. Despite these factors, net interest margin was maintained near third quarter levels. Noninterest income in the fourth quarter decreased 6%, driven primarily by a reduction in gains on sales of loans. Partially offsetting this reduction was a significant increase in service fees, particularly as a result of growth in the mortgage loan servicing portfolio. Noninterest expense increased 7% during the fourth quarter, reflecting increased costs related to the opening of offices in the last 12 months in Santa Fe, New Mexico; Fitchburg, Wisconsin; and Mesa, Arizona, as well as the formation of HTLF Capital Corp. Recently opened Arizona Bank & Trust has been well received, as deposits exceeded $20 million and loans exceeded $17 million at the end of its first four full months of operation. Plans are underway for the opening of a second office in 2004 A 3-for-2 stock split was completed on December 29, 2003, underscoring the confidence of the board and management team as they continue to pursue Heartland’s growth objectives.

Investor Information Heartland’s Common stock is traded on the NASDAQ National Market System under the symbol "HTLF." Heartland is its own stock transfer agent. Any correspondence may be directed to Lois K. Pearce, Corporate Secretary. Primary market makers are: Howe Barnes Investment, Inc., 135 S. LaSalle Street, Chicago, IL 60603-4398, Phone 800-800-4693 FTN Midwest Research Securities Corporation, 350 Madison Avenue, 19thFloor, New York, NY 10017, Phone 866-268-6529 Heartland’s trust preferred securities are traded on the American Stock Exchange under the symbol "HFT.Pr." Additional information about Heartland is available through our website atwww.htlf.com. Stock Value Per Share(1) PE Ratio – Diluted (12/31/03):16.034 52-Week Price Range (12/31/03): $11.50-$21.53 Closing Price (12/31/03): $18.60 Book Value(12/31/03):$9.29 Price/Book Value (12/31/03):   200.22% Current Dividend:$0.27 Yield:  1.45% Shares outstanding (12/31/03):     15,163,503 (1)Restated to reflect two-for-three stock split effected in the form of a dividend on December 29, 2003. This newsletter may contain forward-looking statements. Actual events and results may differ significantly from those described in such forward-looking statements, due to changes in the economy, interest rates or other factors. For additional information about these factors, please review our filings with the Securities and Exchange Commission. Heartland undertakes no obligation to update any statement in this newsletter in light of new information or future events.

Financial Highlights(Dollars in thousands, except per share data)
	For the Years Ended December 31,
	2003			2002			2001			2000			1999
Income Statement Data
Net interest income (tax-equivalent)(1)	$	63,373		$	59,253		$	50,080		$	44,974		$	34,109
Provision for loan losses		4,183			3,553			4,258			2,976			2,550
Noninterest income		36,541			30,645			28,620			25,721			24,426
Noninterest expense		67,692			60,659			56,692			52,812			43,574
Income tax expense		8,137			7,523			5,530			4,211			3,239
Income from continuing operations		17,719			16,590			11,129			9,579			8,352
Income (loss) on discontinued operations		0			2,277			285			7			(127	)
Net income		17,719			18,867			11,414			9,586			8,225
Ratios
Return on average equity		13.46	%		16.44	%		11.32	%		10.69	%		9.61	%
Return on average assets		0.95			1.13			0.72			0.70			0.78
Net interest margin (tax-equivalent)(1)		3.79			4.04			3.67			3.74			3.64
Allowance as a percent of total loans		1.37			1.37			1.33			1.30			1.30
Earnings per share - diluted(2)	$	1.16		$	1.28		$	0.79		$	0.65		$	0.56
Earnings per share fromcontinuing operations  - diluted(2) (3)		1.16			1.12			0.77			0.65			0.57
Adjusted earnings per share - diluted(2) (4)		1.16			1.28			0.85			0.73			0.59
Adjusted earnings per share from continuing operations - diluted(2) (5)		1.16			1.12			0.84			0.73			0.61
Dividends per share		0.27			0.27			0.25			0.24			0.23
Book value per share		9.29			8.40			7.37			6.67			6.02
Balance Sheet Data
Total assets	$	2,018,366		$	1,785,979		$	1,644,064		$	1,466,387		$	1,184,147
Total loans and leases, net of unearned		1,348,227			1,175,236			1,105,205			1,042,096			835,146
Total deposits		1,492,488			1,337,985			1,205,159			1,101,313			869,659
Stockholders' equity		140,923			124,041			107,090			96,146			86,573
(1) Tax equivalent basis is calculated using an effective tax rate of 34%.
(2) Restated to reflect two-for-three stock split effected in the form of a dividend on December 29, 2003.
(3) Excludes discontinued operations of our Eau Claire branch.
(4) Excludes goodwill amortization discontinued with the adoption of FAS Nos. 142 and 147.
(5) Excludes goodwill amortization discontinued with the adoption of FAS Nos. 142 and 147 and the discontinued operations of our Eau Claire branch.

Total Assets (In thousands)  Total Loans (In thousands) Total Deposits (In thousands)

[GRAPHS DEPICTING VALUES IN THE TABLE ABOVE]

Earings Per Share from Continuing Operations-DilutedNet Interest Margin (Tax equivalent) Allowance as Percent of Total Loans

[GRAPHS DEPICTING VALUES IN THE TABLE ABOVE]