CONTACT: FOR IMMEDIATE RELEASE
John K. Schmidt MONDAY, APRIL 27, 2009
Chief Operating Officer
Chief Financial Officer
(563) 589-1994
jschmidt@htlf.com
HEARTLAND FINANCIAL USA, INC. REPORTS FIRST QUARTER 2009 EARNINGS
First Quarter 2009 Highlights
| § | Net interest income increased $3.3 million or 12% over first quarter 2008 |
| § | Net interest margin improved to 3.94% compared to 3.88% for first quarter 2008 |
| § | Average earning assets increased $335.3 million or 11% over first quarter 2008 |
| § | Provision for loan losses was $6.7 million compared to $1.8 million in first quarter 2008 |
| § | Deposit growth was $148.5 million or 6% since year-end 2008 |
| § | Total loans decreased $48.6 million or 2% since year-end 2008 as demand slowed |
| | | | Quarter Ended March 31, | |
| | | | 2009 | | | | 2008 | |
| Net income (in millions) | | $ | 6.1 | | | $ | 6.3 | |
| Net income available to common stockholders (in millions) | | | 4.8 | | | | 6.3 | |
| Diluted earnings per common share | | | 0.29 | | | | 0.38 | |
| | | | | | | | | |
| Return on average assets | | | 0.53 | % | | | 0.77 | % |
| Return on average common equity | | | 8.26 | | | | 10.72 | |
| Net interest margin | | | 3.94 | | | | 3.88 | |
“Given the current economic environment, we feel pretty good about our first quarter results. This was our best quarter of the last four, and as a result, we are cautiously optimistic. ”
Lynn B. Fuller, chairman, president and chief executive officer, Heartland Financial USA, Inc.
Dubuque, Iowa, April 27, 2009—Heartland Financial USA, Inc. (NASDAQ: HTLF) today reported net income of $6.1 million, or $0.29 per diluted common share, for the quarter ended March 31, 2009, compared to net income of $6.3 million, or $0.38 per diluted common share, earned during the first quarter of 2008. Return on average common equity was 8.26 percent and return on average assets was 0.53 percent for the first quarter of 2009, compared to 10.72 percent and 0.77 percent, respectively, for the same quarter in 2008.
Lynn B. Fuller, Heartland’s chairman, president and chief executive officer said, “Given the current economic environment, we feel pretty good about our first quarter results. This was our best quarter of the last four, and as a result, we are cautiously optimistic.”
Earnings for the first quarter of 2009 were positively affected by increased net interest income, loan servicing income, securities gains and gains on sale of loans. The growth in these areas was partially offset by an increase in the loan loss provision, which was $6.7 million during the first quarter of 2009 compared to $1.8 million during the first quarter of 2008.
Net Interest Margin Improves; Net Interest Income Grows
Net interest margin, expressed as a percentage of average earning assets, was 3.94 percent during the first quarter of 2009 compared to 3.88 percent for the first quarter of 2008 and 3.79 percent for the fourth quarter of 2008.
Commenting on net interest margin, Fuller said, “Net interest margin improved over the previous quarter and year ago periods. Our success at growing margin during the quarter is a direct result of disciplined pricing. We are committed to maintaining margin near the 4 percent level and will not compete for loans or deposits strictly for the sake of growth.”
Net interest income on a tax-equivalent basis totaled $32.1 million during the first quarter of 2009, an increase of $3.4 million or 12 percent from the $28.7 million recorded during the first quarter of 2008. Contributing to this increase was the $335.3 million or 11 percent growth in average earning assets over the comparable quarterly period.
On a tax-equivalent basis, interest income in the first quarter of 2009 totaled $50.8 million compared to $52.2 million in the first quarter of 2008, a decrease of $1.4 million or 3 percent. Nearly half of Heartland’s commercial and agricultural loan portfolios consist of floating rate loans that reprice immediately upon a change in the national prime interest rate, thus changes in the national prime rate impact interest income more quickly than if there were more fixed rate loans. The national prime interest rate was 3.25 percent for the first three months of 2009. During the first three months of 2008, the national prime interest rate decreased from 7.25 percent on January 1, 2008, to 5.25 percent at March 31, 2008. A large portion of Heartland’s floating rate loans that reprice immediately with a change in national prime have interest rate floors that are currently in effect. Additionally, Heartland has two $50.0 million derivative transactions on the loan portfolio that are at their floor interest rates. One of these derivative transactions matured on April 4, 2009.
Interest expense for the first quarter of 2009 was $18.7 million compared to $23.6 million in the first quarter of 2008, a decrease of $4.9 million or 21 percent. Approximately 47 percent of Heartland’s certificate of deposit accounts will mature within the next six months at a weighted average rate of 2.81 percent.
Noninterest Income Increases; Noninterest Expense Grows
Noninterest income was $12.8 million during the first quarter of 2009 compared to $8.5 million during the first quarter of 2008, an increase of $4.3 million or 51 percent. The categories experiencing the largest increases for the comparative quarters were loan servicing income, securities gains and gains on sale of loans. Loan servicing income increased $1.5 million or 115 percent due to an increase in the number of residential real estate loans that Heartland services, balances of which totaled $868.6 million at March 31, 2009, compared to $660.4 million at March 31, 2008. Securities gains totaled $3.0 million during the first quarter of 2009 compared to $362,000 during the first quarter of 2008 as securities designed to outperform in a declining rate environment were sold during the first quarter of 2009 and replaced with securities that are expected to outperform as rates rise. Gains on sale of loans totaled $1.8 million during the first quarter of 2009 compared to $504,000 during the first quarter of 2008. As long-term mortgage loan rates fell below 5.00 percent during the first quarter of 2009, refinancing activity significantly increased on 15- and 30-year, fixed-rate mortgage loans. Heartland normally elects to sell these types of loans into the secondary market and retains the servicing on these loans.
Fuller stated, “Noninterest income was a major contributor to Heartland’s first quarter results. We took the opportunity to record significant securities gains while actively participating in the latest refinance boom. During the first quarter, Heartland banks originated $305 million in new and refinanced mortgage loans to 1,600 borrowers. Additionally, we have assisted nearly 200 customers with modifications to their existing mortgage loans to help those borrowers stay in their homes and avoid foreclosure during this time of financial stress.”
For the first quarter of 2009, noninterest expense totaled $28.3 million, an increase of $2.5 million or 10 percent from the $25.8 million recorded during the same quarter in 2008. The largest component of noninterest expense, salaries and employee benefits, increased $1.6 million or 11 percent during the first quarter of 2009 compared to the first quarter of 2008, primarily due to the opening of Minnesota Bank & Trust in April 2008 and additional staffing at Summit Bank & Trust to grow its customer base and at Heartland’s operations center to provide support services to the bank subsidiaries. Commission expense increased $410,000 or 65 percent during the first quarter of 2009 compared to the first quarter of 2008 as activity in residential mortgage loans increased. Total full-time equivalent employees were 1,049 at March 31, 2009, compared to 995 at March 31, 2008. The other noninterest expense category to experience a significant increase during the quarters under comparison was outside services, which increased $707,000 or 28 percent, primarily as a result of higher FDIC assessments.
Heartland’s effective tax rate was 31.71 percent for the first quarter of 2009 compared to 27.86 percent for the first quarter of 2008. Heartland’s effective tax rate during the first quarter of 2009 did not include any federal rehabilitation tax credits, whereas Heartland’s effective tax rate during the first quarter of 2008 included $208,000 in federal rehabilitation tax credits associated with Dubuque Bank and Trust Company’s ownership interests in limited liability companies that own certified historic structures. Heartland’s effective tax rate is also affected by the level of tax-exempt interest income which, as a percentage of pre-tax income, was 21.70 percent during the first quarter of 2009 compared to 20.17 percent during the first quarter of 2008. The tax-equivalent adjustment for this tax-exempt interest income was $1.0 million during the first quarter of 2009 compared to $943,000 during the same quarter in 2008.
Loan Growth Slows; Double Digit Growth in Deposits
At March 31, 2009, total assets had increased $99.8 million or 11 percent annualized since year-end 2008. Total loans and leases were $2.36 billion at March 31, 2009, compared to $2.41 billion at year-end 2008, a decrease of $48.6 million or 8 percent annualized. The only loan category to experience growth during the first quarter of 2009 was the agricultural and agricultural real estate loans, which totaled $259.3 million at March 31, 2009, an increase of $11.7 million or 19 percent annualized since year-end 2008. All of this growth occurred at Dubuque Bank and Trust Company.
Total deposits grew to $2.79 billion at March 31, 2009, an increase of $148.5 million or 22 percent annualized since year-end 2008. With the exception of First Community Bank and Wisconsin Community Bank, all Heartland banks experienced a significant increase in deposits. This growth was weighted more heavily in Heartland’s Midwestern markets, which were responsible for nearly 58 percent of the growth. Demand deposits increased $26.9 million or 28 percent annualized since year-end 2008. Savings deposit balances experienced an increase of $57.4 million or 20 percent annualized since year-end 2008 and time deposits, exclusive of brokered deposits, experienced an increase of $71.0 million or 26 percent annualized since year-end 2008. At March 31, 2009, brokered time deposits totaled $44.6 million or 2 percent of total deposits compared to $51.5 million or 2 percent of total deposits at year-end 2008.
“While the banking industry is experiencing annualized deposit growth near 12 percent, Heartland’s deposit increases demonstrate our ability to gain market share, as nonbrokered deposits grew at a 24 percent annualized rate,” Fuller added. “Across Heartland, we have focused on growth of non-maturity deposits and are pleased to see an annual increase of 22 percent in these deposits. Fueling this growth is a great menu of deposit products, along with an increased focus on commercial treasury management sales and services. We are thankful for a loyal customer base that has confidence in our strength.”
Decrease in Nonperforming Loans; Increase in Other Real Estate Owned
The allowance for loan and lease losses at March 31, 2009, was 1.58 percent of loans and leases and 55.52 percent of nonperforming loans, compared to 1.48 percent of loans and leases and 45.73 percent of nonperforming loans at December 31, 2008. The first quarter 2009 provision for loan losses was $6.7 million compared to $1.8 million for the first quarter 2008. Additions to the allowance for loan and lease losses during the first quarter of 2009 were driven by a variety of factors including deterioration of economic conditions, downgrades in internal risk ratings, reduction in appraised values and higher levels of charge-offs, primarily in Heartland’s Western markets of Arizona, Montana and Colorado.
Nonperforming loans were $67.1 million or 2.85 percent of total loans and leases at March 31, 2009, compared to $78.0 million or 3.24 percent of total loans and leases at December 31, 2008. Approximately 65 percent, or $43.3 million, of Heartland’s nonperforming loans are to 17 borrowers, with $10.2 million originated by Arizona Bank & Trust, $10.0 million originated by Rocky Mountain Bank, $8.3 million originated by Wisconsin Community Bank, $7.7 million originated by Summit Bank & Trust, $3.1 million originated by Riverside Community Bank, $2.5 million originated by Dubuque Bank and Trust Company and $1.5 million originated by First Community Bank. The portion of Heartland’s nonperforming loans covered by government guarantees was $3.8 million at March 31, 2009.
Other real estate owned increased to $29.3 million at March 31, 2009, compared to $11.8 million at December 31, 2008, an increase of $17.5 million. A residential lot development loan originated at Rocky Mountain Bank was responsible for $12.0 million of this increase.
Net charge-offs during the first quarter 2009 were $5.0 million compared to $1.1 million during the first quarter 2008. A large portion of the net charge-offs was related to commercial real estate development loans and residential lot loans, primarily in the Phoenix, Arizona market. Previously, Heartland generally recognized the charge-off on a loan when the loan was resolved, sold or transferred to other real estate owned. However, in the third quarter of 2008, Heartland began to recognize charge-offs on loans it considered impaired by writing down the loan balance to an estimated net realizable value based on the anticipated disposition value.
“Realizing that we are far from being out of the woods, we are encouraged that the rate of increase in our nonperforming assets slowed during the first quarter of 2009. We remain cautious, however, and are continuing to actively work with stressed borrowers to find solutions to their debt problems and are diligently working to find buyers for our repossessed real estate. Unfortunately, there are no assurances that a steeper decline in the economy won’t rekindle further deterioration,” Fuller said.
Fuller concluded, “As a consortium of community banks, we remain strongly focused on the communities we serve where we are a part of the Main Street fabric. We continue to seek and make good loans while serving as catalysts for economic stability and growth.”
Conference Call Details
Heartland will host a conference call for investors at 5:00 p.m. EDT today. To participate, dial 800-762-8779 at least five minutes before start time, or log onto www.htlf.com. If you are unable to participate on the call, a replay will be available until May 4, 2009, by dialing 800-406-7325, pass code 4054774, or by logging onto www.htlf.com.
About Heartland Financial USA, Inc.
Heartland Financial USA, Inc. is a $3.7 billion diversified financial services company providing banking, mortgage, wealth management, insurance and consumer finance services to individuals and businesses. Heartland currently has 61 banking locations in 41 communities in Iowa, Illinois, Wisconsin, New Mexico, Arizona, Montana, Colorado and Minnesota. 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 loss of key executives or employees; (viii) changes in consumer spending; (ix) unexpected results of acquisitions; (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 March 31, |
| | | | 2009 | | | | 2008 | |
| Interest Income | | | | | | | | |
| Interest and fees on loans and leases | | $ | 39,483 | | | $ | 42,899 | |
| Interest on securities and other: | | | | | | | | |
Taxable | | | 8,421 | | | | 6,615 | |
Nontaxable | | | 1,883 | | | | 1,647 | |
| Interest on federal funds sold | | | 1 | | | | 131 | |
| Interest on deposits in other financial institutions | | | 1 | | | | 5 | |
Total Interest Income | | | 49,789 | | | | 51,297 | |
| Interest Expense | | | | | | | | |
| Interest on deposits | | | 14,122 | | | | 17,096 | |
| Interest on short-term borrowings | | | 212 | | | | 2,186 | |
| Interest on other borrowings | | | 4,378 | | | | 4,277 | |
Total Interest Expense | | | 18,712 | | | | 23,559 | |
Net Interest Income | | | 31,077 | | | | 27,738 | |
| Provision for loan and lease losses | | | 6,665 | | | | 1,761 | |
Net Interest Income After Provision for Loan and Lease Losses | | | 24,412 | | | | 25,977 | |
| Noninterest Income | | | | | | | | |
| Service charges and fees | | | 2,887 | | | | 2,615 | |
| Loan servicing income | | | 2,786 | | | | 1,296 | |
| Trust fees | | | 1,697 | | | | 2,021 | |
| Brokerage and insurance commissions | | | 881 | | | | 892 | |
| Securities gains, net | | | 2,965 | | | | 362 | |
| Loss on trading account securities | | | (286 | ) | | | (207 | ) |
| Impairment loss on securities | | | - | | | | (86 | ) |
| Gains on sale of loans | | | 1,808 | | | | 504 | |
| Income on bank owned life insurance | | | 130 | | | | 463 | |
| Other noninterest income | | | (106 | ) | | | 614 | |
Total Noninterest Income | | | 12,762 | | | | 8,474 | |
| Noninterest Expense | | | | | | | | |
| Salaries and employee benefits | | | 16,433 | | | | 14,793 | |
| Occupancy | | | 2,375 | | | | 2,344 | |
| Furniture and equipment | | | 1,647 | | | | 1,768 | |
| Outside services | | | 3,217 | | | | 2,510 | |
| Advertising | | | 583 | | | | 795 | |
| Other intangibles amortization | | | 235 | | | | 236 | |
| Other noninterest expenses | | | 3,796 | | | | 3,318 | |
Total Noninterest Expense | | | 28,286 | | | | 25,764 | |
Income Before Income Taxes | | | 8,888 | | | | 8,687 | |
| Income taxes | | | 2,819 | | | | 2,420 | |
Net Income | | $ | 6,069 | | | $ | 6,267 | |
Net income attributable to noncontrolling interest, net of tax | | | 59 | | | | - | |
Preferred dividends and discount | | | (1,336 | ) | | | - | |
Net Income Available to Common Stockholders | | $ | 4,792 | | | $ | 6,267 | |
| | | | | | | | | |
| Earnings per common share-diluted | | $ | 0.29 | | | $ | 0.38 | |
| Weighted average shares outstanding-diluted | | | 16,296,839 | | | | 16,465,985 | |
| | | | | | | | | |
| HEARTLAND FINANCIAL USA, INC. | |
| CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) | |
| DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | |
| | | For the Quarter Ended | |
| | | 3/31/2009 | | | 12/31/2008 | | | 9/30/2008 | | | 6/30/2008 | | | 3/31/2008 | |
| Interest Income | | | | | | | | | | | | | | | |
| Interest and fees on loans and leases | | $ | 39,483 | | | $ | 39,905 | | | $ | 40,990 | | | $ | 40,555 | | | $ | 42,899 | |
| Interest on securities and other: | | | | | | | | | | | | | | | | | | | | |
Taxable | | | 8,421 | | | | 8,503 | | | | 8,228 | | | | 7,885 | | | | 6,615 | |
Nontaxable | | | 1,883 | | | | 1,692 | | | | 1,670 | | | | 1,679 | | | | 1,647 | |
| Interest on federal funds sold | | | 1 | | | | 32 | | | | 85 | | | | 51 | | | | 131 | |
| Interest on deposits in other financial institutions | | | 1 | | | | 8 | | | | 3 | | | | 2 | | | | 5 | |
Total Interest Income | | | 49,789 | | | | 50,140 | | | | 50,976 | | | | 50,172 | | | | 51,297 | |
| Interest Expense | | | | | | | | | | | | | | | | | | | | |
| Interest on deposits | | | 14,122 | | | | 15,729 | | | | 15,622 | | | | 15,657 | | | | 17,096 | |
| Interest on short-term borrowings | | | 212 | | | | 522 | | | | 776 | | | | 1,087 | | | | 2,186 | |
| Interest on other borrowings | | | 4,378 | | | | 4,662 | | | | 4,692 | | | | 4,593 | | | | 4,277 | |
Total Interest Expense | | | 18,712 | | | | 20,913 | | | | 21,090 | | | | 21,337 | | | | 23,559 | |
Net Interest Income | | | 31,077 | | | | 29,227 | | | | 29,886 | | | | 28,835 | | | | 27,738 | |
| Provision for loan and lease losses | | | 6,665 | | | | 15,106 | | | | 7,083 | | | | 5,369 | | | | 1,761 | |
Net Interest Income After Provision for Loan and Lease Losses | | | 24,412 | | | | 14,121 | | | | 22,803 | | | | 23,466 | | | | 25,977 | |
| Noninterest Income | | | | | | | | | | | | | | | | | | | | |
| Service charges and fees | | | 2,887 | | | | 3,034 | | | | 3,125 | | | | 2,880 | | | | 2,615 | |
| Loan servicing income | | | 2,786 | | | | 1,015 | | | | 1,094 | | | | 1,195 | | | | 1,296 | |
| Trust fees | | | 1,697 | | | | 1,747 | | | | 2,070 | | | | 2,068 | | | | 2,021 | |
| Brokerage and insurance commissions | | | 881 | | | | 1,002 | | | | 942 | | | | 883 | | | | 892 | |
| Securities gains, net | | | 2,965 | | | | 510 | | | | 5 | | | | 648 | | | | 362 | |
| Loss on trading account securities | | | (286 | ) | | | (531 | ) | | | (33 | ) | | | (227 | ) | | | (207 | ) |
| Impairment loss on securities | | | - | | | | (347 | ) | | | (4,688 | ) | | | (30 | ) | | | (86 | ) |
| Gains on sale of loans | | | 1,808 | | | | 331 | | | | 295 | | | | 480 | | | | 504 | |
| Income (loss) on bank owned life insurance | | | 130 | | | | (1,780 | ) | | | (247 | ) | | | 380 | | | | 463 | |
| Gain on sale of merchant bankcard processing services | | | - | | | | - | | | | 5,200 | | | | - | | | | - | |
| Other noninterest income | | | (106 | ) | | | 543 | | | | 117 | | | | 41 | | | | 614 | |
Total Noninterest Income | | | 12,762 | | | | 5,524 | | | | 7,880 | | | | 8,318 | | | | 8,474 | |
| Noninterest Expense | | | | | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 16,433 | | | | 12,293 | | | | 15,000 | | | | 14,666 | | | | 14,793 | |
| Occupancy | | | 2,375 | | | | 2,220 | | | | 2,262 | | | | 2,193 | | | | 2,344 | |
| Furniture and equipment | | | 1,647 | | | | 1,767 | | | | 1,662 | | | | 1,771 | | | | 1,768 | |
| Outside services | | | 3,217 | | | | 3,068 | | | | 3,096 | | | | 2,648 | | | | 2,510 | |
| Advertising | | | 583 | | | | 909 | | | | 1,012 | | | | 1,046 | | | | 795 | |
| Other intangibles amortization | | | 235 | | | | 235 | | | | 236 | | | | 236 | | | | 236 | |
| Other noninterest expenses | | | 3,796 | | | | 3,666 | | | | 3,469 | | | | 3,020 | | | | 3,318 | |
Total Noninterest Expense | | | 28,286 | | | | 24,158 | | | | 26,737 | | | | 25,580 | | | | 25,764 | |
Income (Loss) Before Income Taxes | | | 8,888 | | | | (4,513 | ) | | | 3,946 | | | | 6,204 | | | | 8,687 | |
| Income taxes | | | 2,819 | | | | (1,769 | ) | | | 1,018 | | | | 1,643 | | | | 2,420 | |
Net Income (Loss) | | $ | 6,069 | | | $ | (2,744 | ) | | $ | 2,928 | | | $ | 4,561 | | | $ | 6,267 | |
Net income available to noncontrolling interest, net of tax | | | 59 | | | | 61 | | | | 77 | | | | 142 | | | | - | |
Preferred dividends and discount | | | (1,336 | ) | | | (178 | ) | | | - | | | | - | | | | - | |
Net Income (Loss) Available to Common Stockholders | | $ | 4,792 | | | $ | (2,861 | ) | | $ | 3,005 | | | $ | 4,703 | | | $ | 6,267 | |
| | | | | | | | | | | | | | | | | | | | | |
| Earnings (loss) per common share-diluted | | $ | .29 | | | $ | (0.18 | ) | | $ | 0.18 | | | $ | 0.29 | | | $ | 0.38 | |
| Weighted average shares outstanding-diluted | | | 16,296,839 | | | | 16,324,106 | | | | 16,355,393 | | | | 16,388,885 | | | | 16,465,985 | |
| HEARTLAND FINANCIAL USA, INC. | |
| CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) | |
| DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | |
| | | As Of | |
| | | 3/31/2009 | | | 12/31/2008 | | | 9/30/2008 | | | 6/30/2008 | | | 3/31/2008 | |
| Assets | | | | | | | | | | | | | | | |
| Cash and cash equivalents | | $ | 87,261 | | | $ | 51,303 | | | $ | 67,074 | | | $ | 41,292 | | | $ | 50,141 | |
| Securities | | | 1,006,172 | | | | 903,705 | | | | 760,143 | | | | 795,624 | | | | 734,690 | |
| Loans held for sale | | | 18,263 | | | | 19,695 | | | | 9,812 | | | | 11,437 | | | | 11,222 | |
| Loans and leases: | | | | | | | | | | | | | | | | | | | | |
| Held to maturity | | | 2,356,391 | | | | 2,405,001 | | | | 2,364,259 | | | | 2,295,406 | | | | 2,271,663 | |
| Allowance for loan and lease losses | | | (37,277 | ) | | | (35,651 | ) | | | (34,845 | ) | | | (34,931 | ) | | | (33,695 | ) |
| Loans and leases, net | | | 2,319,114 | | | | 2,369,350 | | | | 2,329,414 | | | | 2,260,475 | | | | 2,237,968 | |
| Premises, furniture and equipment, net | | | 119,569 | | | | 120,500 | | | | 120,225 | | | | 118,063 | | | | 119,542 | |
| Goodwill | | | 40,207 | | | | 40,207 | | | | 40,207 | | | | 40,207 | | | | 40,207 | |
| Other intangible assets, net | | | 9,606 | | | | 8,079 | | | | 8,332 | | | | 8,434 | | | | 8,416 | |
| Cash surrender value on life insurance | | | 54,581 | | | | 54,431 | | | | 55,684 | | | | 56,430 | | | | 56,018 | |
| Other assets | | | 75,327 | | | | 62,998 | | | | 55,091 | | | | 47,109 | | | | 42,276 | |
| Total Assets | | $ | 3,730,100 | | | $ | 3,630,268 | | | $ | 3,445,982 | | | $ | 3,379,071 | | | $ | 3,300,480 | |
| | | | | | | | | | | | | | | | | | | | | |
| Liabilities and Equity | | | | | | | | | | | | | | | | | | | | |
| Liabilities | | | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | | | |
| Demand | | $ | 409,921 | | | $ | 383,061 | | | $ | 373,193 | | | $ | 383,136 | | | $ | 377,709 | |
| Savings | | | 1,185,756 | | | | 1,128,312 | | | | 1,042,364 | | | | 894,074 | | | | 863,067 | |
| Brokered time deposits | | | 44,631 | | | | 51,474 | | | | 81,895 | | | | 79,515 | | | | 89,439 | |
| Other time deposits | | | 1,148,413 | | | | 1,077,385 | | | | 1,070,455 | | | | 1,052,160 | | | | 1,090,724 | |
| Total deposits | | | 2,788,721 | | | | 2,640,232 | | | | 2,567,907 | | | | 2,408,885 | | | | 2,420,939 | |
| Short-term borrowings | | | 117,766 | | | | 210,184 | | | | 176,543 | | | | 263,137 | | | | 226,106 | |
| Other borrowings | | | 477,640 | | | | 437,833 | | | | 440,146 | | | | 444,006 | | | | 380,479 | |
| Accrued expenses and other liabilities | | | 30,496 | | | | 33,396 | | | | 32,993 | | | | 32,187 | | | | 37,103 | |
| Total Liabilities | | | 3,414,623 | | | | 3,321,645 | | | | 3,217,589 | | | | 3,148,215 | | | | 3,064,627 | |
| | | | | | | | | | | | | | | | | | | | | |
| Equity | | | | | | | | | | | | | | | | | | | | |
| Preferred equity | | | 76,279 | | | | 75,578 | | | | - | | | | - | | | | - | |
| Common equity | | | 236,237 | | | | 230,025 | | | | 225,312 | | | | 227,698 | | | | 235,853 | |
| Total Heartland Stockholders’ Equity | | | 312,516 | | | | 305,603 | | | | 225,312 | | | | 227,698 | | | | 235,853 | |
| Noncontrolling interest | | | 2,961 | | | | 3,020 | | | | 3,081 | | | | 3,158 | | | | - | |
| Total Equity | | | 315,477 | | | | 308,623 | | | | 228,393 | | | | 230,856 | | | | 235,853 | |
| Total Liabilities and Equity | | $ | 3,730,100 | | | $ | 3,630,268 | | | $ | 3,445,982 | | | $ | 3,379,071 | | | $ | 3,300,480 | |
| | | | | | | | | | | | | | | | | | | | | |
| Common Share Data | | | | | | | | | | | | | | | | | | | | |
| Book value per common share | | $ | 14.50 | | | $ | 14.13 | | | $ | 13.86 | | | $ | 13.99 | | | $ | 14.46 | |
| FAS 115 effect on book value per common share | | $ | .10 | | | $ | (0.13 | ) | | $ | (0.28 | ) | | $ | (0.07 | ) | | $ | 0.52 | |
| Common shares outstanding, net of treasury stock | | | 16,294,828 | | | | 16,274,490 | | | | 16,252,891 | | | | 16,270,872 | | | | 16,312,384 | |
| | | | | | | | | | | | | | | | | | | | | |
Tangible Capital Ratio(1) | | | 5.23 | % | | | 5.19 | % | | | 5.33 | % | | | 5.50 | % | | | 5.88 | % |
(1) Total common stockholders’ equity less goodwill and intangible assets (excluding mortgage servicing rights) divided by total assets less intangible assets (excluding mortgage servicing rights).
| HEARTLAND FINANCIAL USA, INC. |
| CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
| DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA |
| | | For the Quarter Ended | |
| | | 3/31/2009 | | | 12/31/2008 | | | 9/30/2008 | | | 6/30/2008 | | | 3/31/2008 | |
| | | | | | | | | | | | | | | | |
| Average Balances | | | | | | | | | | | | | | | |
| Assets | | $ | 3,659,204 | | | $ | 3,492,105 | | | $ | 3,399,199 | | | $ | 3,354,880 | | | $ | 3,269,534 | |
| Loans and leases, net of unearned | | | 2,423,605 | | | | 2,396,816 | | | | 2,339,539 | | | | 2,286,392 | | | | 2,284,634 | |
| Deposits | | | 2,674,320 | | | | 2,587,372 | | | | 2,499,988 | | | | 2,396,963 | | | | 2,338,634 | |
| Earning assets | | | 3,309,556 | | | | 3,177,472 | | | | 3,100,208 | | | | 3,057,505 | | | | 2,974,215 | |
| Interest bearing liabilities | | | 2,918,763 | | | | 2,837,795 | | | | 2,750,004 | | | | 2,712,487 | | | | 2,637,962 | |
| Total stockholders’ equity | | | 313,968 | | | | 233,824 | | | | 227,111 | | | | 234,005 | | | | 235,144 | |
| Common stockholders’ equity | | | 235,200 | | | | 222,509 | | | | 227,111 | | | | 234,005 | | | | 235,144 | |
| Tangible common stockholders’ equity | | | 196,318 | | | | 183,284 | | | | 187,509 | | | | 193,950 | | | | 194,600 | |
| | | | | | | | | | | | | | | | | | | | | |
| Earnings Performance Ratios | | | | | | | | | | | | | | | | | | | | |
| Annualized return on average assets | | | 0.53 | % | | | (0.33 | )% | | | 0.35 | % | | | 0.56 | % | | | 0.77 | % |
| Annualized return on average common equity | | | 8.26 | | | | (5.12 | ) | | | 5.26 | | | | 8.08 | | | | 10.72 | |
| Annualized return on average common tangible equity | | | 9.90 | | | | (6.21 | ) | | | 6.38 | | | | 9.75 | | | | 12.95 | |
Annualized net interest margin(1) | | | 3.94 | | | | 3.79 | | | | 3.96 | | | | 3.92 | | | | 3.88 | |
Efficiency ratio(2) | | | 67.48 | | | | 68.37 | | | | 68.79 | | | | 67.92 | | | | 70.02 | |
(1) Tax equivalent basis is calculated using an effective tax rate of 35%
(2) Noninterest expense divided by the sum of net interest income and noninterest income less net security gains
| HEARTLAND FINANCIAL USA, INC. | |
| CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) | |
| DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | |
| | | As of and For | | | As of and For | | | As of and For | | | As of and For | |
| | | the Quarter | | | the Year | | | the Quarter | | | the Year | |
| | | Ended | | | Ended | | | Ended | | | Ended | |
| | | 3/31/2009 | | | 12/31/2008 | | | 3/31/2008 | | | 12/31/2007 | |
| Loan and Lease Data | | | | | | | | | | | | |
| Commercial and commercial real estate | | $ | 1,673,882 | | | $ | 1,718,071 | | | $ | 1,616,190 | | | $ | 1,632,597 | |
| Residential mortgage | | | 190,179 | | | | 203,921 | | | | 210,147 | | | | 217,044 | |
| Agricultural and agricultural real estate | | | 259,320 | | | | 247,664 | | | | 238,178 | | | | 225,663 | |
| Consumer | | | 232,507 | | | | 234,061 | | | | 202,348 | | | | 199,518 | |
| Direct financing leases, net | | | 4,989 | | | | 5,829 | | | | 8,386 | | | | 9,158 | |
| Unearned discount and deferred loan fees | | | (4,486 | ) | | | (4,545 | ) | | | (3,586 | ) | | | (3,813 | ) |
| Total loans and leases | | $ | 2,356,391 | | | $ | 2,405,001 | | | $ | 2,271,663 | | | $ | 2,280,167 | |
| | | | | | | | | | | | | | | | | |
| Asset Quality | | | | | | | | | | | | | | | | |
| Nonaccrual loans | | $ | 67,140 | | | $ | 76,953 | | | $ | 38,748 | | | $ | 30,694 | |
| Loans and leases past due ninety days or more as to interest or principal payments | | | - | | | | 1,005 | | | | 378 | | | | 1,134 | |
| Other real estate owned | | | 29,317 | | | | 11,750 | | | | 2,714 | | | | 2,195 | |
| Other repossessed assets | | | 1,501 | | | | 1,484 | | | | 494 | | | | 438 | |
| Total nonperforming assets | | $ | 97,958 | | | $ | 91,192 | | | $ | 42,334 | | | $ | 34,461 | |
| | | | | | | | | | | | | | | | | |
| Allowance for Loan and Lease Losses | | | | | | | | | | | | | | | | |
| Balance, beginning of period | | $ | 35,651 | | | $ | 32,993 | | | $ | 32,993 | | | $ | 29,981 | |
| Provision for loan and lease losses | | | 6,665 | | | | 29,319 | | | | 1,761 | | | | 10,073 | |
| Loans charged off | | | (5,635 | ) | | | (27,747 | ) | | | (1,315 | ) | | | (8,564 | ) |
| Recoveries | | | 596 | | | | 1,086 | | | | 256 | | | | 1,641 | |
| Reductions related to discontinued operations | | | - | | | | - | | | | - | | | | (138 | ) |
| Balance, end of period | | $ | 37,277 | | | $ | 35,651 | | | $ | 33,695 | | | $ | 32,993 | |
| | | | | | | | | | | | | | | | | |
| Asset Quality Ratios | | | | | | | | | | | | | | | | |
| Ratio of nonperforming loans and leases to total loans and leases | | | 2.85 | % | | | 3.24 | % | | | 1.72 | % | | | 1.40 | % |
| Ratio of nonperforming assets to total assets | | | 2.63 | | | | 2.51 | | | | 1.28 | | | | 1.06 | |
| Ratio of net loan charge-offs to average loans and leases | | | 0.21 | | | | 1.15 | | | | 0.05 | | | | 0.30 | |
| Allowance for loan and lease losses as a percent of loans and leases | | | 1.58 | | | | 1.48 | | | | 1.48 | | | | 1.45 | |
| Allowance for loan and lease losses as a percent of nonperforming loans and leases | | | 55.52 | | | | 45.73 | | | | 86.12 | | | | 103.66 | |
HEARTLAND FINANCIAL USA, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) DOLLARS IN THOUSANDS |
| | | For the Quarter Ended | |
| | | 3/31/2009 | | | 3/31/2008 | |
| | | Average | | | | | | | | | Average | | | | | | | |
| | | Balance | | | Interest | | | Rate | | | Balance | | | Interest | | | Rate | |
| Earning Assets | | | | | | | | | | | | | | | | | | |
| Securities: | | | | | | | | | | | | | | | | | | |
Taxable | $ | 759,985 | | $ | 8,421 | | | 4.49 | % | $ | 556,859 | | $ | 6,615 | | | 4.78 | % |
Nontaxable(1) | | 160,147 | | | 2,720 | | | 6.89 | | | 145,942 | | | 2,421 | | | 6.67 | |
Total securities | | 920,132 | | | 11,141 | | | 4.91 | | | 702,801 | | | 9,036 | | | 5.17 | |
| Interest bearing deposits | | 634 | | | 1 | | | 0.64 | | | 432 | | | 5 | | | 4.66 | |
| Federal funds sold | | 785 | | | 1 | | | 0.52 | | | 19,006 | | | 131 | | | 2.77 | |
| Loans and leases: | | | | | | | | | | | | | | | | | | |
Commercial and commercial real estate(1) | | 1,693,796 | | | 26,142 | | | 6.26 | | | 1,623,511 | | | 28,597 | | | 7.08 | |
Residential mortgage | | 236,878 | | | 3,449 | | | 5.90 | | | 224,902 | | | 3,701 | | | 6.62 | |
Agricultural and agricultural real estate(1) | | 256,059 | | | 4,092 | | | 6.48 | | | 228,964 | | | 4,324 | | | 7.60 | |
Consumer | | 231,328 | | | 4,973 | | | 8.72 | | | 198,469 | | | 4,931 | | | 9.99 | |
Direct financing leases, net | | 5,544 | | | 68 | | | 4.97 | | | 8,788 | | | 133 | | | 6.09 | |
Fees on loans | | - | | | 966 | | | - | | | - | | | 1,382 | | | - | |
Less: allowance for loan and lease losses | | (35,600) | | | - | | | - | | | (32,658) | | | - | | | - | |
Net loans and leases | | 2,388,005 | | | 39,690 | | | 6.74 | | | 2,251,976 | | | 43,068 | | | 7.69 | |
Total earning assets | | 3,309,556 | | $ | 50,833 | | | 6.23 | % | | 2,974,215 | | $ | 52,240 | | | 7.06 | % |
| Nonearning Assets | | 349,648 | | | | | | | | | 295,319 | | | | | | | |
| Total Assets | $ | 3,659,204 | | | | | | | | $ | 3,269,534 | | | | | | | |
| Interest Bearing Liabilities | | | | | | | | | | | | | | | | | | |
| Interest bearing deposits | | | | | | | | | | | | | | | | | | |
Savings | $ | 1,116,314 | | $ | 4,524 | | | 1.64 | % | $ | 827,988 | | $ | 4,035 | | | 1.96 | % |
Time, $100,000 and over | | 394,948 | | | 3,238 | | | 3.32 | | | 308,760 | | | 3,547 | | | 4.62 | |
Other time deposits | | 769,443 | | | 6,360 | | | 3.35 | | | 845,308 | | | 9,514 | | | 4.53 | |
| Short-term borrowings | | 170,826 | | | 212 | | | 0.50 | | | 301,616 | | | 2,186 | | | 2.91 | |
| Other borrowings | | 467,232 | | | 4,378 | | | 3.80 | | | 354,290 | | | 4,277 | | | 4.86 | |
Total interest bearing liabilities | | 2,918,763 | | | 18,712 | | | 2.60 | | | 2,637,962 | | | 23,559 | | | 3.59 | |
| Noninterest Bearing Liabilities | | | | | | | | | | | | | | | | | | |
| Noninterest bearing deposits | | 393,615 | | | | | | | | | 356,578 | | | | | | | |
| Accrued interest and other liabilities | | 32,858 | | | | | | | | | 39,850 | | | | | | | |
Total noninterest bearing liabilities | | 426,473 | | | | | | | | | 396,428 | | | | | | | |
| Stockholders’ Equity | | 313,968 | | | | | | | | | 235,144 | | | | | | | |
| Total Liabilities and Stockholders’ Equity | $ | 3,659,204 | | | | | | | | $ | 3,269,534 | | | | | | | |
Net interest income(1) | | | | $ | 32,121 | | | | | | | | $ | 28,681 | | | | |
Net interest spread(1) | | | | | | | | 3.63 | % | | | | | | | | 3.47 | % |
Net interest income to total earning assets(1) | | | | | | | | 3.94 | % | | | | | | | | 3.88 | % |
| Interest bearing liabilities to earning assets | | 88.19 | % | | | | | | | | 88.69 | % | | | | | | |
| | | | | | | | | | | | | | | | | | | |
(1) Tax equivalent basis is calculated using an effective tax rate of 35%. |
HEARTLAND FINANCIAL USA, INC. SELECTED FINANCIAL DATA – SUBSIDIARY BANKS (Unaudited) DOLLARS IN THOUSANDS | |
| | | As of and For the Quarter Ended 3/31/2009 | | | As of and For the Year Ended 12/31/2008 | | | As of and For the Quarter Ended 3/31/2008 | | | As of and For the Year Ended 12/31/2007 | |
| Total Assets | | | | | | | | | | | | |
| Dubuque Bank and Trust Company | | $ | 1,107,204 | | | $ | 1,041,247 | | | $ | 973,201 | | | $ | 976,489 | |
| New Mexico Bank & Trust | | | 762,980 | | | | 773,726 | | | | 669,783 | | | | 672,863 | |
| Rocky Mountain Bank | | | 481,577 | | | | 476,762 | | | | 446,084 | | | | 427,437 | |
| Wisconsin Community Bank | | | 427,734 | | | | 429,707 | | | | 404,517 | | | | 399,532 | |
| Riverside Community Bank | | | 254,965 | | | | 244,613 | | | | 235,361 | | | | 225,206 | |
| Galena State Bank & Trust Co. | | | 228,711 | | | | 222,886 | | | | 220,519 | | | | 215,698 | |
| Arizona Bank & Trust | | | 227,840 | | | | 219,830 | | | | 215,506 | | | | 222,576 | |
| First Community Bank | | | 123,785 | | | | 123,058 | | | | 123,429 | | | | 127,305 | |
| Summit Bank & Trust | | | 78,892 | | | | 77,638 | | | | 49,855 | | | | 46,668 | |
| Minnesota Bank & Trust | | | 30,625 | | | | 25,695 | | | | - | | | | - | |
| Total Deposits | | | | | | | | | | | | | | | | |
| Dubuque Bank and Trust Company | | $ | 806,425 | | | $ | 749,250 | | | $ | 698,820 | | | $ | 670,257 | |
| New Mexico Bank & Trust | | | 535,753 | | | | 507,561 | | | | 473,823 | | | | 459,530 | |
| Rocky Mountain Bank | | | 375,708 | | | | 370,630 | | | | 337,577 | | | | 305,933 | |
| Wisconsin Community Bank | | | 336,670 | | | | 338,025 | | | | 312,389 | | | | 321,647 | |
| Riverside Community Bank | | | 209,176 | | | | 197,785 | | | | 191,131 | | | | 187,052 | |
| Galena State Bank & Trust Co. | | | 193,697 | | | | 185,042 | | | | 178,268 | | | | 177,040 | |
| Arizona Bank & Trust | | | 176,393 | | | | 155,909 | | | | 147,401 | | | | 155,093 | |
| First Community Bank | | | 100,441 | | | | 102,515 | | | | 100,647 | | | | 103,602 | |
| Summit Bank & Trust | | | 66,259 | | | | 60,278 | | | | 32,400 | | | | 30,860 | |
| Minnesota Bank & Trust | | | 15,598 | | | | 10,459 | | | | - | | | | - | |
| Return on Average Assets | | | | | | | | | | | | | | | | |
| Dubuque Bank and Trust Company | | | 1.43 | % | | | 1.38 | % | | | 1.65 | % | | | 1.34 | % |
| New Mexico Bank & Trust | | | 1.72 | | | | 1.06 | | | | 1.07 | | | | 1.48 | |
| Rocky Mountain Bank | | | 0.61 | | | | 0.33 | | | | 0.60 | | | | 1.51 | |
| Wisconsin Community Bank | | | 0.95 | | | | 0.27 | | | | 0.88 | | | | 0.62 | |
| Riverside Community Bank | | | 0.82 | | | | 0.42 | | | | 0.34 | | | | 0.55 | |
| Galena State Bank & Trust Co. | | | 1.64 | | | | 1.10 | | | | 1.60 | | | | 0.92 | |
| Arizona Bank & Trust | | | (4.94 | ) | | | (1.75 | ) | | | (0.63 | ) | | | (0.08 | ) |
| First Community Bank | | | 1.04 | | | | 0.45 | | | | 1.27 | | | | 1.30 | |
| Summit Bank & Trust | | | (2.23 | ) | | | (4.57 | ) | | | (4.03 | ) | | | (2.43 | ) |
| Minnesota Bank & Trust | | | (4.32 | ) | | | (7.43 | ) | | | - | | | | - | |
| Net Interest Margin | | | | | | | | | | | | | | | | |
| Dubuque Bank and Trust Company | | | 3.59 | % | | | 3.56 | % | | | 3.54 | % | | | 3.40 | % |
| New Mexico Bank & Trust | | | 4.70 | | | | 4.57 | | | | 4.61 | | | | 4.80 | |
| Rocky Mountain Bank | | | 4.17 | | | | 4.25 | | | | 4.42 | | | | 4.76 | |
| Wisconsin Community Bank | | | 3.65 | | | | 3.61 | | | | 3.66 | | | | 3.45 | |
| Riverside Community Bank | | | 2.98 | | | | 3.21 | | | | 3.17 | | | | 3.39 | |
| Galena State Bank & Trust Co. | | | 3.43 | | | | 3.42 | | | | 3.58 | | | | 3.40 | |
| Arizona Bank & Trust | | | 3.88 | | | | 3.89 | | | | 4.09 | | | | 4.56 | |
| First Community Bank | | | 3.53 | | | | 3.44 | | | | 3.72 | | | | 3.80 | |
| Summit Bank & Trust | | | 3.38 | | | | 3.93 | | | | 3.96 | | | | 5.10 | |
| Minnesota Bank & Trust | | | 3.13 | | | | 2.60 | | | | - | | | | - | |
| Net Income (Loss) | | | | | | | | | | | | | | | | |
| Dubuque Bank and Trust Company | | $ | 3,787 | | | $ | 13,846 | | | $ | 3,978 | | | $ | 11,907 | |
| New Mexico Bank & Trust | | | 3,257 | | | | 7,456 | | | | 1,790 | | | | 8,727 | |
| Rocky Mountain Bank | | | 723 | | | | 1,508 | | | | 643 | | | | 6,622 | |
| Wisconsin Community Bank | | | 1,011 | | | | 1,073 | | | | 874 | | | | 2,355 | |
| Riverside Community Bank | | | 501 | | | | 1,017 | | | | 193 | | | | 1,055 | |
| Galena State Bank & Trust Co. | | | 905 | | | | 2,433 | | | | 866 | | | | 1,895 | |
| Arizona Bank & Trust | | | (2,695 | ) | | | (3,856 | ) | | | (340 | ) | | | (154 | ) |
| First Community Bank | | | 316 | | | | 548 | | | | 394 | | | | 1,476 | |
| Summit Bank & Trust | | | (432 | ) | | | (2,754 | ) | | | (475 | ) | | | (965 | ) |
| Minnesota Bank & Trust | | | (291 | ) | | | (1,401 | ) | | | - | | | | - | |
HEARTLAND FINANCIAL USA, INC. SELECTED FINANCIAL DATA – SUBSIDIARY BANKS (Unaudited) DOLLARS IN THOUSANDS | |
| | | As of 3/31/2009 | | | As of 12/31/2008 | | | As of 3/31/2008 | | | As of 12/31/2007 | |
| Total Portfolio Loans and Leases | | | | | | | | | | | | |
| Dubuque Bank and Trust Company | | $ | 662,047 | | | $ | 669,856 | | | $ | 647,621 | | | $ | 637,782 | |
| New Mexico Bank & Trust | | | 480,147 | | | | 494,877 | | | | 444,744 | | | | 455,383 | |
| Rocky Mountain Bank | | | 312,335 | | | | 326,086 | | | | 314,005 | | | | 316,776 | |
| Wisconsin Community Bank | | | 295,852 | | | | 291,164 | | | | 287,232 | | | | 285,010 | |
| Riverside Community Bank | | | 161,304 | | | | 165,347 | | | | 153,113 | | | | 146,925 | |
| Galena State Bank & Trust Co. | | | 130,791 | | | | 141,428 | | | | 138,036 | | | | 144,152 | |
| Arizona Bank & Trust | | | 138,647 | | | | 139,723 | | | | 152,682 | | | | 160,309 | |
| First Community Bank | | | 74,120 | | | | 79,261 | | | | 77,669 | | | | 84,475 | |
| Summit Bank & Trust | | | 62,157 | | | | 60,725 | | | | 33,826 | | | | 27,493 | |
| Minnesota Bank & Trust | | | 14,796 | | | | 13,134 | | | | - | | | | - | |
| Allowance For Loan and Lease Losses | | | | | | | | | | | | | | | | |
| Dubuque Bank and Trust Company | | $ | 9,333 | | | $ | 9,307 | | | $ | 7,948 | | | $ | 7,827 | |
| New Mexico Bank & Trust | | | 6,607 | | | | 6,847 | | | | 6,377 | | | | 6,079 | |
| Rocky Mountain Bank | | | 4,938 | | | | 4,678 | | | | 4,319 | | | | 4,061 | |
| Wisconsin Community Bank | | | 4,345 | | | | 4,297 | | | | 4,266 | | | | 4,520 | |
| Riverside Community Bank | | | 2,215 | | | | 2,293 | | | | 2,026 | | | | 1,885 | |
| Galena State Bank & Trust Co. | | | 1,782 | | | | 1,962 | | | | 1,746 | | | | 1,830 | |
| Arizona Bank & Trust | | | 3,933 | | | | 2,330 | | | | 3,736 | | | | 3,605 | |
| First Community Bank | | | 1,023 | | | | 1,110 | | | | 1,162 | | | | 1,179 | |
| Summit Bank & Trust | | | 1,075 | | | | 874 | | | | 453 | | | | 367 | |
| Minnesota Bank & Trust | | | 185 | | | | 164 | | | | - | | | | - | |
| Nonperforming Loans and Leases | | | | | | | | | | | | | | | | |
| Dubuque Bank and Trust Company | | $ | 6,180 | | | $ | 7,840 | | | $ | 3,734 | | | $ | 3,344 | |
| New Mexico Bank & Trust | | | 10,094 | | | | 11,426 | | | | 3,635 | | | | 1,130 | |
| Rocky Mountain Bank | | | 12,854 | | | | 17,254 | | | | 3,253 | | | | 2,099 | |
| Wisconsin Community Bank | | | 13,075 | | | | 10,746 | | | | 12,471 | | | | 12,152 | |
| Riverside Community Bank | | | 6,105 | | | | 6,410 | | | | 2,777 | | | | 2,671 | |
| Galena State Bank & Trust Co. | | | 3,040 | | | | 4,625 | | | | 1,189 | | | | 1,707 | |
| Arizona Bank & Trust | | | 5,234 | | | | 8,278 | | | | 8,218 | | | | 5,541 | |
| First Community Bank | | | 4,291 | | | | 5,102 | | | | 1,919 | | | | 1,312 | |
| Summit Bank & Trust | | | 5,460 | | | | 5,486 | | | | 1,390 | | | | 1,376 | |
| Minnesota Bank & Trust | | | - | | | | - | | | | - | | | | - | |
| Allowance As a Percent of Total Loans and Leases | | | | | | | | | | | | | | | | |
| Dubuque Bank and Trust Company | | | 1.41 | % | | | 1.39 | % | | | 1.23 | % | | | 1.23 | % |
| New Mexico Bank & Trust | | | 1.38 | | | | 1.38 | | | | 1.43 | | | | 1.33 | |
| Rocky Mountain Bank | | | 1.58 | | | | 1.43 | | | | 1.38 | | | | 1.28 | |
| Wisconsin Community Bank | | | 1.47 | | | | 1.48 | | | | 1.49 | | | | 1.59 | |
| Riverside Community Bank | | | 1.37 | | | | 1.39 | | | | 1.32 | | | | 1.28 | |
| Galena State Bank & Trust Co. | | | 1.36 | | | | 1.39 | | | | 1.26 | | | | 1.27 | |
| Arizona Bank & Trust | | | 2.84 | | | | 1.67 | | | | 2.45 | | | | 2.25 | |
| First Community Bank | | | 1.38 | | | | 1.40 | | | | 1.50 | | | | 1.40 | |
| Summit Bank & Trust | | | 1.73 | | | | 1.44 | | | | 1.34 | | | | 1.33 | |
| Minnesota Bank & Trust | | | 1.25 | | | | 1.25 | | | | - | | | | - | |
