Volume 13, Issue 2 Second Quarter 2005 INVESTMENT PROFILE is published quarterly to keep current and potential Heartland stockholders 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 Rocky Mountain Bank 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 nNet Income improved by 18% over second quarter 2004. n Only one month of Rocky Mountain Bank's earnings was included in the second-quarter 2004 results as the acquisition was completed on June 1, 2004. Its contribution to net income was $527,000 during the second quarter of 2005 compared to $260,000 during the second quarter of 2004. n Net interest income increased 34% during the second quarter of 2005, primarily due to the 22% growth in average earning assets, of which half resulted from internal growth and the other half from the acquisition of Rocky Mountain Bank. n Net interest margin as a percentage of average earning assets improved to 4.03% during the second quarter of 2005 compared to 3.97% during the first quarter of 2005 and 3.71% for the second quarter of 2004. n Total loans and leases increased $72 million or 4% since March 31, 2005. Loan demand picked up during the second quarter, and management remains optimistic that it will continue during the remaining quarters of 2005. n Total deposits increased $62 million or 3% since March 31, 2005. Over half of this growth occurred at our three banks in our Western markets. n The development of Heartland's branch network continued during the second quarter. Arizona Bank & Trust opened its third branch location at 2036 E. Camelback Road in Phoenix on May 16. Construction is underway on: n three new sites in Albuquerque, New Mexico, under the New Mexico Bank & Trust umbrella. n one new site in Kalispell, Montana under the Rocky Mountain Bank umbrella and n one new site in Rockford, Illinois, under the Riverside Community Bank umbrella. | 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 Investments, Inc., 222 S. Riverside Plaza, 7th Floor, Chicago, IL 60606-5808, Phone 800-800-4693 ■ FTN Financial Securities Corp., 350 Madison Avenue, 19th Floor, New York, NY 10017, Phone 866-268-6529 Additional information about Heartland is available through our website at www.htlf.com Stock Value Per Share Closing Price (6/30/05): $19.53 52-Week Price Range (6/30/05): $16.78-$21.30 Book Value (6/30/05): $11.11 Price/Book Value (6/30/05): 175.79% Current Dividend: $0.32 Yield: 1.64% PE Ratio - Diluted (6/30/05): 15.258 Shares Outstanding (6/30/05): 16,399,470 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 Qtrs Ended June 30, | For the Years Ended December 31, | |||||||||||||
2005 | 2004 | 2004 | 2003 | 2002 | ||||||||||
Income Statement Data | ||||||||||||||
| Net Interest income | $ | 45,108 | $ | 34,130 | $ | 77,130 | $ | 61,190 | $ | 57,680 | ||||
| Provision for loan losses | 3,000 | 2,347 | 4,846 | 4,183 | 3,553 | |||||||||
| Noninterest income | 19,755 | 19,309 | 37,841 | 36,541 | 30,645 | |||||||||
| Noninterest expense | 46,210 | 37,228 | 81,936 | 67,692 | 60,659 | |||||||||
| Income tax expense | 4,983 | 4,223 | 7,937 | 8,137 | 7,523 | |||||||||
| Income from continuing operations | 10,670 | 9,641 | 20,252 | 17,719 | 16,590 | |||||||||
| Income from operations of discontinued branch | - | - | - | - | 2,277 | |||||||||
| Net income | 10,670 | 9,641 | 20,252 | 17,719 | 18,867 | |||||||||
Ratios | ||||||||||||
| Return on average equity | 12.09 | % | 13.22 | % | 12.82 | % | 13.46 | % | 16.44 | % | ||
| Return on average assets | 0.81 | 0.92 | 0.87 | 0.95 | 1.13 | |||||||
Net interest margin (tax equivalent)(1) | 4.00 | 3.82 | 3.87 | 3.80 | 4.04 | |||||||
| Allowance as a percent of total loans | 1.44 | 1.42 | 1.41 | 1.40 | 1.40 | |||||||
| Earnings per share - diluted | $ | 0.64 | $ | 0.62 | $ | 1.26 | $ | 1.16 | $ | 1.28 | ||
Earnings per share from continuing operations-diluted(2) | 0.64 | 0.62 | 1.26 | 1.16 | 1.12 | |||||||
| Dividends per share | 0.16 | 0.16 | 0.32 | 0.27 | 0.27 | |||||||
| Book value per share | 11.11 | 9.98 | 10.69 | 9.29 | 8.40 |
Balance Sheet Data | ||||||||||||
| Total assets | $ | 2,712,028 | $ | 2,476,836 | $ | 2,629,055 | $ | 2,018,366 | $ | 1,785,979 | ||
| Total loans and leases, net of unearned | 1,854,926 | 1,689,109 | 1,772,954 | 1,322,549 | 1,152,069 | |||||||
| Total deposits | 2,052,413 | 1,829,878 | 1,983,846 | 1,492,488 | 1,337,985 | |||||||
| Stockholders' equity | 182,246 | 164,208 | 175,782 | 140,923 | 124,041 |
(1)Tax-equivalent basis is calculated using an effective tax rate of 35%. / (2)Excludes 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]
Earnings Per Share from Continuing Operations - Diluted Net Interest Margin (Tax equivalent) Allowance as Percent of Total Loans
[GRAPHS DEPICTING VALUES IN THE TABLE ABOVE]