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| CONTACT: | FOR IMMEDIATE RELEASE |
| John K. Schmidt | Monday, January 24, 2011 |
| Chief Operating Officer | |
| Chief Financial Officer | |
| (563) 589-1994 | |
| jschmidt@htlf.com | |
HEARTLAND FINANCIAL USA, INC. REPORTS FOURTH QUARTER 2010 RESULTS
Fourth Quarter 2010 Highlights
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| ▪ | Net income of $6.5 million |
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| ▪ | Net interest margin of 4.05% |
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| ▪ | Nonperforming assets not covered by loss share agreements were $122.6 million at quarter-end, up fr om $117.8 million at September 30, 2010 |
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| ▪ | Announced expansion of residential mortgage lending capabilities through National Residential Mortgage |
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| ▪ | Completed $24.5 million private debt offering |
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| ▪ | Announced intent to combine First Community Bank with Dubuque Bank and Trust Company |
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| | Quarter Ended Dec. 31, | | Year Ended Dec. 31, |
| | 2010 | | 2009 | | 2010 | | 2009 |
| Net income (loss) (in millions) | $ | 6.5 | | | $ | (7.9 | ) | | $ | 23.8 | | | $ | 6.4 | |
| Net income, exclusive of goodwill impairment charge (in millions) | 6.5 | | | 4.8 | | | 25.4 | | | 19.0 | |
| Net income (loss) available to common stockholders (in millions) | 5.2 | | | (9.2 | ) | | 18.6 | | | 1.2 | |
| Net income available to common stockholders, exclusive of goodwill impairment charge (in millions) | 5.2 | | | 3.5 | | | 20.2 | | | 13.9 | |
| Diluted earnings (loss) per common share | 0.31 | | | (0.56 | ) | | 1.13 | | | 0.07 | |
| Diluted earnings per common share, exclusive of goodwill impairment charge | 0.31 | | | 0.21 | | | 1.23 | | | 0.85 | |
| | | | | | &nb sp; | | |
| Return on average assets | 0.50 | % | | (0.92 | )% | | 0.46 | % | | 0.03 | % |
| Return on average common equity | 8.06 | | | (14.76 | ) | | 7.51 | | | 0.51 | |
| Net interest margin | 4.05 | | | 4.04 | | | 4.12 | | | 3.99 | |
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“We are pleased with Heartland's earnings of $23.8 million for 2010. This is a significant improvement over the previous year and r eflects the concerted efforts of our team in weathering the difficult credit conditions that have significantly impacted the banking industry, including our company.” Lynn B. Fuller, chairman, president and chief executive officer, Heartland Financial USA, Inc. |
Dubuque, Iowa, Monday, January 24, 2011-Heartland Financial USA, Inc. (NASDAQ: HTLF) today reported net income of $6.5 million for the quarter ended December 31, 2010, compared to a net loss of $7.9 million for the fourth quarter of 2009. Net income available to common stockholders was $5.2 million, or $0.31 per diluted common share, for the quarter ended December 31, 2010, compared to a net loss of $9.2 million, or $0.56 per diluted common share, for the fourth quarter of 2009. Return on average common equity was 8.06 percent and return on average assets was 0.50 percent for the fourth quarter of 2010, compared to negative 14.76 percent and negative 0.92 percent, respectively, for the same quarter in 2009.
Commenting on Heartland's performance, Lynn B. Fuller, Heartland's chairman, president and chief executive officer said, “We are pleased with Heartland's earnings of $23.8 million for 2010. This is a significant improvement over the previous year and reflects the concerted efforts of our team in weathering the difficult credit conditions that have significantly impacted the banking industry, including our company.”
The fourth quarter 2009 net loss resulted primarily from a $12.7 million goodwill impairment charge recorded during th e quarter. This non-cash charge, which had no impact on operations, liquidity or capital, was due to the adverse economic conditions in Heartland's Arizona and Montana markets. Excluding this non-cash goodwill impairment charge, net income for the fourth quarter of 2009 would have been $4.8 million, net income available to common stockholders would have been $3.5 million, or $0.21 per diluted common share, return on average common equity would have been 5.62 percent and return on average assets would have been 0.35 percent.
Net income for the fourth quarter of 2010 compared to the fourth quarter of 2009 was positively affected by increases in net interest income, loan servicing income, gains on sale of loans and a positive valuation adjustment on mortgage servicing rights, a long with a reduction in the provision for loan losses. The effect of these improvements was mitigated by increases in salaries and employee benefits, increases in professional fees and additional writedowns on repossessed assets that were recorded during the fourth quarter of 2010.
Net income for the entire year was $23.8 million in 2010, compared to $6.4 million in 2009. Net income available to common stockholders was $18.6 million, or $1.13 per diluted common share, for the year 2010, compared to $1.2 million, or $0.07 per diluted common share, earned during the year 2009. Return on average common equity was 7.51 percent and return on average assets was 0.46 percent for the year 2010, compared to 0.51 percent and 0.03 percent, respectively, for the year 2009. Excluding a goodwill impairment charge of $1.6 million recorded during the third quarter, net income for the year 2010 would have been $25.4 million, net income available to common stockholders would have been $20.2 million, or $1.23 per diluted common share, return on average common equity would have been 8.17 percent and return on average assets would have been 0.50 percent. Excluding the goodwill impairment charge of $12.7 million recorded during the fourth quarter, net income for the year 2009 would have been $19.0 million, net income available to common stockholders would have been $13.9 million, or $0.85 per diluted common share, return on average common equity would have been 5.76 percent and return on average assets would have been 0.36 percent.
Earnings for the year 2010 in com parison to the year 2009 were positively affected by increased net interest income, a reduced provision for loan losses and increases in service charges and fees, trust fees and gains on sale of loans. The effect of these positive factors was offset somewhat by decreases in the income associated with residential mortgage loan activity, decreased gains on sales of securities, increases in salaries and employee benefits, increases in professional fees and higher writedowns on repossessed assets.
Non-GAAP Financial Measures
This re lease contains financial information determined by methods other than in accordance with generally accepted accounting principles in the U.S., often referred to as GAAP. Heartland has disclosed in this release certain non-GAAP financial measures to provide meaningful supplemental information regarding its operational performance and to enhance readers' overall understanding of its operating financial performance. Management believes that the impact of a goodwill impairment charge to earnings impairs the ability of the reader to evaluate trends in results of operations without information that reports results of operations without the charge. These non-GAAP financial measures are presented for supplemental information purposes only and should not be considered a substitute for financial information presented in accordance with GAAP. The following schedule presents performance ratios in accordance with GAAP and a reconciliation of the non-GAAP financial measurements to the GAAP financial measurements. For the non-GAAP financial measurements, net income, exclusive of goodwill
impairment charge is defined as net income (loss) as presented in accordance with GAAP plus any goodwill impairment charge recorded during the period.
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| | | For the Quarter Ended December 31, | | For the Year Ended December 31, |
| (Dollars in thousands, except per share data) | | | 2010 | | | | 2009 | | | | 2010 | | | | 2009 | |
| | | | | | | | | | | | | | | | | |
| Net income (loss) as reported | | $ | 6,498 | | | | $ | (7,875 | ) | | | $ | 23,788 | | | | $ | 6,374 | | |
| Goodwill impairment charge | | | — | | | | | 12,659 | | | | | 1,639 | | | | | 12,659 | | |
| Net income, exclusive of goodwill impairment charge | | $ | 6,498 | | | | $ | 4,784 | | | | $ | 25,427 | | | | $ | 19,033 | | |
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| Net income (loss) available to common stockholders | | $ | 5,197 | | | | $ | (9,170 | ) | | | $ | 18,559 | | | | $ | 1,218 | | |
| Goodwill impairment charge | | | — | | | | | 12,659 | | | | | 1,639 | | | | | 12,659 | | |
| Net income available to common stockholders, exclusive of goodwill impairment charge | | $ | 5,197 | | | | $ | 3,489 | | | | $ | 20,198 | | | | $ | 13,877 | | |
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| GAAP earnings (loss) per common share-diluted | | $ | 0.31 | | | | $ | (0.56 | ) | | | $ | 1.13 | | | | $ | 0.07 | | |
| Earnings per common share-diluted, exclusive of goodwill impairment charge | | $ | 0.31 | | | | $ | 0.21 | | | | $ | 1.23 | | | | $ | 0.85 | | |
| GAAP return on average assets | | | 0.50 | | % | | | (0.92 | ) | % | | | 0.46 | | % | | | 0.03 | | % |
| Return on average assets, exclusive of goodwill impairment charge | | | 0.50 | | % | | | 0.35 | | % | | | 0.50 | | % | | | 0.36 | | % |
| GAAP return on average equity | | | 8.06 | | % | | | (14.76 | ) | % | | | 7.51 | | % | | | 0.51 | | % |
| Return on average equity, exclusive of goodwill impairment charge | | | 8.06 | | % | | | 5.62 | | % | | | 8.17 | | % | | | 5.76 | | % |
| GAAP return on average tangible equity | | | 9.06 | | % | | | (17.87 | ) | % | | | 8.53 | | % | | | 0.62 | | % |
| Return on average tangible equity, exclusive of goodwill impairment charge | | | 9.06 | | % | | | 6.80 | | % | | | 9.29 | | % | | | 7.02 | | % |
| GAAP efficiency ratio | | | 70.09 | | % | | | 92.19 | | % | | | 66.79 | | % | | | 73.07 | | % |
| Efficiency ratio, exclusive of goodwill impairment charge | | | 70.09 | | % | | | 65.32 | | % | | | 65.95 | | % | | | 66.09 | | % |
Net Interest Margin Remains Above 4.00 Percent; Net Interest Income Grows
Net interest margin, expressed as a percentage of average earning assets, was 4.05 percent during the fourth quarter of 2010 compared to 4.04 percent for the fourth quarter of 2009. For the entire year, net interest margin was 4.12 percent during 2010 compared to 3.99 percent during 2009.
Fuller said, “At 4.05 percent for the quarter, net interest margin is a continuing bright spot for us. Much of Heartland's earnings success this year is the direct result of careful management of our margin which has exceeded four percent for six consecutive quarters. As deposit interest rates are approaching an effective floor and market loan rates continue to fall, we see the possibility of our margin dropping below 4.00 percent in 2011.”
Net interest income on a tax-equivalent basis totaled $37.1 million during the fourth quarter of 2010, an increase of $1.2 million or 3 percent from the $35.9 million recorded dur ing the fourth quarter of 2009. For the entire year, net interest income on a tax-equivalent basis was $148.0 million during 2010, an increase of $10.7 million or 8 percent from the $137.3 million recorded during 2009. These increases reflect Heartland's success in optimizing the composition of its interest bearing liabilities by de-emphasizing higher cost time deposits, which decreased to 37 percent of total average interest bearing deposits during the fourth quarter of 2010 from 42 percent during the fourth quarter of 2009. During the entire year, time deposits were 38 percent of total average interest bearing deposits during 2010 compared to 47 percent during 2009.
On a tax-equivalent basis, interest income in the fourth quarter of 2010 was $50.1 million compared to $52. 4 million in the fourth quarter of 2009, a decrease of $2.3 million or 4 percent. For the entire year, interest income on a tax-equivalent basis was $203.9 million during 2010 compared to $207.8 million during 2009, a decrease of $3.9 million or 2 percent. The $112.1 million or 3 percent growth in average earning assets during the fourth quarter of 2010 and the $157.7 million or 5 percent growth in average earning assets during the year ended December 31, 2010, compared to the same periods in 2009, was offset by the impact of a decrease in the average interest rate earned
on these assets. The composi tion of average earning assets continued to change as the percentage of loans, which are typically the highest yielding asset, to total average earning assets was 66 percent during the year 2010 compared to 69 percent during the year 2009.
Interest expense for the fourth quarter of 2010 was $12.9 million, a decrease of $3.5 million or 21 percent from $16.4 million in the fourth quarter of 2009. On an annual comparative basis, interest expense decreased $14.6 million or 21 percent from $70.5 million during 2009 to $55.9 million during 2010. Average interest bearing liabilities decreased $32.0 million or 1 percent for the quarter ended December 31, 2010, as compared to the same quarter in 2009, and the average interest rates paid on Heartland's deposits and borrowings decline d 43 basis points to 1.66 percent in 2010 from 2.09 percent in 2009. For the annual comparative period, average interest bearing liabilities increased $109.1 million or 4 percent while the average interest rate paid on these liabilities was 1.79 percent in 2010 compared to 2.34 percent in 2009, a 55 basis point decrease.
Noninterest Income Increases; Noninterest Expense Increases
Noninterest income was $18.3 million during the fourth quarter of 2010 compared to $13.4 million during the fourth quarter of 2009, an increase of $4.9 million or 37 percent. Contributing to this increase was growth of $510,000 or 28 percent in loan servicing income and $2.6 million or 226 percent in gains on sale of loans. The fourth quarter 2010 noninterest income also included a $1.2 million positive adjustment on mortgage servicing rights.
Fuller stated, “Noninterest income grew significantly in the fourth quarter of 2010 as record low interest rates fueled another wave of residential mortgage loan refinancing activity. We were also pleased that service charge income held its own compared to previous quarters despite implementation of new regulations requiring debit card and ATM users to "opt-in" for overdraft protection. Also showing nice improvement were revenues in our Wealth Management Group and Investme nt Services divisions.”
For the entire year, noninterest income was $52.3 million during 2010 compared to $52.7 million during 2009, a decrease of $375,000 or 1 percent. Positively affecting noninterest income during the year 2010 were increases of $1.4 million or 11 percent in service charges and fees, $1.4 million or 18 percent in trust fees, $2.0 million or 33 percent in gains on sale of loans and $464,000 or 46 percent in income on bank owned life insurance. A portion of these increases were offset by a $2.4 million or 25 percent decrease in loan servicing income and a $1.8 million or 21 percent decrease in securities gains. Also affecting noninterest income during the year 2009 was a $1.3 million gain on acquisition.
Loan servicing income increased $510,000 or 28 percent for the quarter and decreased $2.4 million or 25 percent for the annual period ended on December 31, 2010, as compared to the comparable periods in 2009. Two components of loan servicing income, mortgage servicing rights and amortization of mortgage servicing rights, are dependent upon the level of loans Heartland originates and sells into the secondary market, which in turn is highly influenced by market interest rates for home mortgage loans. Mortgage servicing rights income was $2.3 million during the fourth quarter of 2010 compared to $1.2 million during the fourth quarter of 2009 and amortization of mortgage servicing rights was $1.5 million during the fourth quarter of 2010 compared to $682,000 during the fourth quarter of 2009. Long-term mortgage loan rates fell to all-time lows during the third and fourth quarters of 2010 and resulted in increased residential mortgage loan refinancing activity. For the entire year, mortgage servicing rights income was $5.8 million in 2010 compared to $8.6 million in 2009 and amortization of mortgage servicing rights was $4.1 million in 2010 compared to $3.6 million in 2009. Although the low mortgage rates during the last two quarters of 2010 positively impacted mortgage servicing rights income and amortization of mortgage servicing rights, the prolonged low interest rate environment during the first two quarters of 2009, compared to more normalized rates in the first two quarters of 2010, more heavily influenced the full year results for loan servicing income. Also included in loan servicing income are the fees collected for the servicing of mortgage loans for others, which is dependent upon the aggregate outstanding balance of these loans, rather than quarterly production and sale of mortgage loans. Fees collected for the servic ing of mortgage loans for others was $831,000 during the fourth quarter of 2010 compared to $696,000 during the fourth quarter of 2009. For the entire year, the fees collected for the servicing of mortgage loans for others was $3.1 million in 2010 compared to $2.4 million in 2009. The portfolio of mortgage loans serviced for others by Heartland totaled $1.40 billion at December 31, 2010, compared to $1.15 billion at December 31, 2009.
Fuller commented, “Heartland intends to continue to emphasize residential mortgage loan origination and expanded this line of business with the addition of National Residential Mortgage during the fourth quarter of 2010. We view recent legislative changes as favorable for local banking companies and believe it opens the door to new
opportunities in mortgage lending. As non-bank competitors in this space are beginning to disappear, we see significant opportunity for the future by expanding residential loan origination as a gateway retail product and a strategic line of business.”
For the fourth quarter of 2010, noninterest expense totaled $37.3 million, a decrease of $6.1 million or 14 percent from the same quarter of 2009. Included in the fourth quarter of 2009 noninterest expense were goodwill impairment charges totaling $12.7 million. Exclusive of these goodwill impairment charges, noninterest expense for the fourth quarter of 2010 increased $6.5 million or 21 percent when compared to the same quarter of 2009. Contributing to this growth in noninterest expense was a $2.5 million or 17 percent increase in salaries and employee benefits, which was higher during the fourth quarter of 2010 as a result of increased commissions paid to mortgage loan officers, the expansion of residential loan origination via the addition of National Residential Mortgage and increased staffing at Heartland, primarily in the special assets area. Also contributing to the increase in noninterest expense was a $3.3 million or 83 percent increase in net losses on repossessed assets, which totaled $7.3 million during the fourth quarter of 2010 compared to $4.0 million during the fourth quarter of 2009 and a $965,000 or 46 percent increase in professional fees, primarily associated with the workout and disposition of nonperforming assets and the services provided to Heartland by third-party consultants.
For the entire year, noninterest expense decreased $3.3 million or 2 percent in 2010 compared to 2009. Goodwill impairment charges totaled $1.6 million during 2010 and $12.7 million during 2009. Exclusive of these goodwill impairment charges, noninterest expense increased $7.7 million or 6 percent in 2010. The primary contributors to this increase were a $2.9 million or 5 percent increase in salaries and employee benefits, $1.3 million or 14 percent increase in professional fees and a $4.4 million or 41 percent increase in net losses on repossessed assets. The effect of these increases was mitig ated by a $1.1 million or 17 percent decrease in FDIC insurance assessments. Full-time equivalent employees totaled 1,066 on December 31, 2010, compared to 1,001 at December 31, 2009. The addition of National Residential Mortgage accounted for twenty-six of the full-time equivalent employees at December 31, 2010.
Heartland's effective tax rate was 29.27 percent for the year 2010 compared to 53.03 percent for the year 2009. Excluding the non-deductible goodwill impairment charges, Heartland's effective tax rate was 27.91 percent for the year 2010 and 27.44 percent for the year 2009. Heartland's effective tax rate is affected by the level of tax-exempt interest income which, as a percentage of pre-tax income exclusive of the non-deductible goodwill impairment charges, was 26.03 percent during 2010 compared to 32.08 percent during 2009. The tax-equivalent adjustment for this tax-exempt interest income was $4.9 million during the year 2010 compared to $4.5 million during the year 2009.
Loan Demand Remains Soft; Growth in Demand Deposits
At December 31, 2010, total assets experienced a slight decrease of $13.5 million or less than 1 percent since year-end 2009. Securities represented 32 percent of total assets at December 31, 2010, compared to 29 percent of total assets at December 31, 200 9.
Total loans and leases, exclusive of those covered by loss share agreements, were $2.34 billion at December 31, 2010, compared to $2.33 billion at year-end 2009, an increase of $12.8 million or 1 percent. Total loans and leases, exclusive of those covered by loss share agreements, decreased $17.6 million during the fourth quarter of 2010 compared to a decrease of $24.2 million during the third quarter of 2010, an increase of $16.5 million during the second quarter of 2010 and an increase of $38.1 million during the first quarter of 2010. The loan category experiencing the majority of the growth during the year 2010 was commercial and commercial real estate loans, which totaled $1.72 billion at December 31, 2010, an increase of $48.9 million or 3 percent since year-end 20 09. This growth occurred at Dubuque Bank and Trust Company, Wisconsin Community Bank, New Mexico Bank & Trust and Minnesota Bank & Trust.
Total deposits were $3.03 billion at December 31, 2010, compared to $3.05 billion at year-end 2009, a decrease of $16.3 million or 1 percent. Total deposits decreased $39.6 million during the fourth quarter of 2010, increased $57.5 million during the third quarter of 2010, decreased $21.2 million during the second quarter of 2010 and decreased $13.0 million during the first quarter of 2010. The composition of Heartland's deposits improved during the year 2010, as demand deposits increased $119.9 million or 26 percent. Other than during the fourth quarter of 2010, in which these deposits experienced a $1.4 million decrease, the an nual growth in these deposits was distributed throughout the year at $44.5 million during the third quarter, $47.6 million during the second quarter and $29.2 million during the first quarter. Savings deposits grew $4.6 million or less than 1 percent since year-end 2009.
For 2010, savings deposits decreased $13.9 million during the fourth quarter, increased $20.3 million during the third quarter, decreased $19.3 million during the second quarter and increased $17.5 million during the first quarter. Contributing to the decrease in demand and savings deposits during the fourth quarter of 2010 was the completion of a private placement debt offering in the amount of $24.5 million which was nearly all funded by balances on deposit at Dubuque Bank and Trust Company. Time deposits, exclusive of brokered deposits, experienced a decrease of $136.4 million or 14 percent during 2010, distributed throughout the year at $24.3 million during the fourth quarter, $7.3 million during the third quarter, $49.6 million during the second quarter and $55.2 million during the first quarter. At December 31, 2010, brokered time deposits totaled $37.3 million or 1 percent of total deposits compared to $41.8 million or 1 percent of total deposits at year-end 2009.
Fuller added, “While deposit growth has leveled off, our deposit mix has continued to improve. At year-end, demand and savings represented over seventy percent of total deposits.”
Allowance for Loan Losses Decreases; Nonperforming Assets Increase
The allowance for loan and lease losses at December 31, 2010, was 1.82 percent of loans and leases and 47.12 percent of nonperforming loans compared to 1.80 percent of loans and leases and 53.56 percent of nonperforming loans at December 31, 2009. The provision for loan losses was $8.9 million for the fourth quarter of 2010 compared to $10.8 million for the fourth quarter of 2009. For the entire year, the provision for loan losses totaled $32.5 million for the 2010 compared to $39.4 million for 2009. Additions to the allowance for loan and lease losses continued during 2010 due to a variety of factors including the continuation of depressed economic conditions, primarily in Heartland's Western markets of Arizona and Montana, that have resulted in increased delinquencies, reductions in the appraised values of collateral and downgrades in internal risk ratings of loans, including particularly the loans in those geographies.
Nonperforming loans, exclusive of those covered under the loss sharing agreements, were $90.5 million or 3.87 percent of total loans and leases at December 31, 2010, compared to $78.1 million or 3.35 percent of total loans and leases at December 31, 2009. Approximately 62 percent, or $56.0 million, of Heartland's nonperforming loans are to 25 borrowers, with $17.9 million originated by Rocky Mountain Bank, $11.8 million originated by Summit Bank & Trust, $8.9 million originated by Wisconsin Community Bank, $8.8 million originated by New Mexico Bank & Trust, $5.2 million originated by Arizona Bank & Trust, $1.8 million originated by Galena State Bank and Trust Company and $1.6 million originated by Riverside Community Bank. The portion of Heartland's nonperforming loans covered by government guarantees was $3.7 million at December 31, 2010. The industry breakdown for these nonperforming loans as identified using the North American Industry Classification System (NAICS) was $13.1 million to lessors of real estate, $11.6 million for lot and land development, $6.6 million for other activities related to real estate and $3.8 million for construction and development. The remaining $20.9 million was distributed among 9 other industries.
Delinquencies in each of the loan portfolios continues to be well managed and no significant adverse trends have been identified. Loans delinquent between 30 and 90 days as a percent of total loans were 0.67 percent at December 31, 2010, compared to 1.65 percent at September 30, 2010, 0.61 percent at June 30, 2010, 1.22 percent at March 31, 2010, and 1.22 percent at December 31, 2009. The increase in the third quarter of 2010 was attributed to six credits, of which half returned to current status during the fourth quarter.
Other real estate owned, exclusive of assets covered under loss sharing agreements, was $31.7 million at December 31, 2010, compared to $30.2 million at December 31, 2009. Liquidation strategies have been identified for all the assets held in other real estate owned. Management continues with its plans to market these properties through an orderly liquidation process instead of a quick liquidation process that would likely result in discounts greater than the projected carrying costs.
Net charge-offs on loans not covered by loss share agreements during the fourth quarter of 2010 were $10.7 million compared to $9.8 million during the fourth quarter of 2009. For the entire year, net charge-offs not covered by loss share agreements were $31.2 million in 2010 compared to $31.8 million in 2009. A large portion of the net charge-offs in both years was related to commercial real estate development loans and residential lot loans.
The schedule below summarizes the changes in Heartland's nonperforming assets, including those covered by loss share agreements, during the fourth quarter of 2010:
| | | | | | | | | | | | | | | |
| (Dollars in thousands) | Nonperforming Loans | | Other Real Estate Owned | | Other Repossessed Assets | | Total Nonperforming Assets |
| September 30, 2010 | $ | 90,520 | | | $ | 32,408 | | | $ | 492 | | | $ | 123,420 | |
| Loan foreclosures | (8,746 | ) | | 8,717 | | | 29 | | | — | |
| Net loan charge offs | (10,899 | ) | | — | | | — | | | (10,899 | ) |
| New nonperforming loans | 27,318 | | | — | | | — | | | 27,318 | |
Reduction of nonperforming loans(1) | (2,695 | ) | | — | | | — | | | (2,695 | ) |
| OREO/Repossessed sales proceeds | — | | | (2,950 | ) | | (61 | ) | | (3,011 | ) |
| OREO/Repossessed assets writedowns, net | — | | | (6,173 | ) | | — | | | (6,173 | ) |
| Net activity at Citizens Finance Co. | — | | | — | | | (158 | ) | | (158 | ) |
| December 31, 2010 | $ | 95,498 | | | $ | 32,002 | | | $ | 302 | | | $ | 127,802 | |
| | | | | | | | |
| (1) Includes principal reductions and transfers to performing status. |
“While most aspects of our business are clicking on all cylinders, we continue to be hindered by nonperforming assets, which ticked up again in the fourth quarter. Nonperformers to total loans ended the year at 3.87%. Though still under four percent, and better than similarly-sized peers, decreasing our nonperforming assets still remains our number one priority,” Fuller said.
Conference Call Details
Heartland will host a conference call for investors at 5:00 p.m. ET today. To participate, dial 800-762-8795 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 January 24, 2012, by logging onto www.htlf.com.
About Heartland Financial USA, Inc.
Heartland Financial USA, Inc. is a $4.0 billion diversified financial services company providing banking, mortgage, wealth management, investment, insurance and consumer finance services to individuals and businesses. Heartland currently has 61 banking locations in 42 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-
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| 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, |
| | 2010 | | 2009 | | 2010 | | 2009 |
| Interest Income | | | | | | | |
| Interest and fees on loans and leases | $ | 37,440 | | | $ | 38,191 | | | $ | 151,794 | | | $ | 154,887 | |
| Interest on securities and other: | | | | | | | |
| Taxable | 7,889 | | | 10,513 | | | 34,507 | | | 39,782 | |
| Nontaxable | 3,438 | | | 2,456 | | | 12,616 | | | 8,595 | |
| Interest on federal funds sold | — | | | 1 | | | 1 | | | 2 | |
| Interest on deposits in other financial institutions | 1 | | | 9 | &n bsp; | | 14 | | | 27 | |
| Total Interest Income | 48,768 | | | 51,170 | | | 198,932 | | | 203,293 | |
| Interest Expense | | | | | | | |
| Interest on deposits | 8,524 | | | 12,000 | | | 38,272 | | | 52,744 | |
| Interest on short-term borrowings | 330 | | | 194 | | | 1,160 | | | 733 | |
| Inte rest on other borrowings | 4,068 | | | 4,250 | | | 16,448 | | | 17,053 | |
| Total Interest Expense | 12,922 | | | 16,444 | | | 55,880 | | | 70,530 | |
| Net Interest Income | 35,846 | | | 34,726 | | | 143,052 | | | 132,763 | |
| Provision for loan and lease losses | 8,860 | | | 10,775 | | | 32,508 | | | 39,377 | |
| Net Interest Income After Provision for Loan and Lease Losses | 26,986 | | | 23,951 | | & nbsp; | 110,544 | | | 93,386 | |
| Noninterest Income | | | | | | | |
| Service charges and fees | 3,537 | | | 3,257 | | | 13,900 | | | 12,541 | |
| Loan servicing income | 2,323 | | | 1,813 | | | 7,232 | | | 9,666 | |
| Trust fees | 2,428 | | | 2,156 | & nbsp; | | 9,206 | | | 7,773 | |
| Brokerage and insurance commissions | 948 | | | 697 | | | 3,184 | | | 3,117 | |
| Securities gains, net | 2,170 | | | 2,186 | | | 6,834 | | | 8,648 | |
| Gain (loss) on trading account securities | 107 | | | (61 | ) | | (91 | ) | | 211 | |
| Impairment loss on securities | — | | | (40 | ) | | — | | | (40 | ) |
| Gains on sale of loans | 3,813 | | | 1,168 | | | 8,088 | | | 6,084 | |
| Valuation adjustment on mortgage servicing rights | 1,239 | | | — | | | — | | | — | |
| Income on bank owned life insurance | 463 | | | 362 | | | 1,466 | | | 1,002 | |
| Gain on acquisition | — | | | 298 | | | — | | | 1,296 | |
| Other noninterest income | 1,265 | | | 1,534 | | | 2,510 | | | 2,406 | |
| Total Noninterest Income | 18,293 | | | 13,370 | | | 52,329 | | | 52,704 | |
| Noninterest Expense | | | | | | | |
| Salaries and employee benefits | 16,892 | | | 14,4 19 | | | 63,391 | | | 60,465 | |
| Occupancy | 2,339 | | | 2,220 | | | 9,121 | | | 8,992 | |
| Furniture and equipment | 1,543 | | | 1,638 | | | 6,104 | | | 6,574 | |
| Professional fees | 3,065 | | | 2,100 | | | 10,446 | | | 9,127 | |
| FDIC insurance assessments | 1,306 | | | 1,320 | | | 5,441 | | | 6,578 | ; |
| Advertising | 1,058 | | | 1,065 | | | 3,830 | | | 3,337 | |
| Intangible assets amortization | 146 | | | 198 | | | 591 | | | 866 | |
| Goodwill impairment charge | — | | | 12,659 | | | 1,639 | | | 12,659 | |
| Net loss on repossessed assets | 7,345 | | | 4,015 | | | 15,264 | | | 10,847 | |
| Other noninterest expenses | 3,623 | | | 3,800 | | | 13,412 | | | 13,075 | |
| Total Noninterest Expense | 37,317 | | | 43,434 | | | 129,239 | | | 132,520 | |
| Income (Loss) Before Income Taxes | 7,962 | | | (6,113 | ) | | 33,634 | | | 13,570 | |
| Income taxes | 1,464 | | | 1,762 | | | 9,846 | | | 7,196 | |
| Net Income (Loss) | 6,498 | | | (7,875 | ) | | 23,788 | | | 6,374 | |
| Net income attributable to noncontrolling interest, net of tax | 35 | | | 41 | | | 115 | | | 188 | |
| Net Income (Loss) Attributable to Heartland | 6,533 | | | (7,834 | ) | | 23,903 | | | 6,562 | |
| Preferred dividends and discount | (1,336 | ) | | (1,336 | ) | | (5,344 | ) | | (5,344 | ) |
| Net Income (Loss) Available to Common Stockholders | $ | 5,197 | | | $ | (9,170 | ) | | $ | 18,559 | | | $ | 1,218 | |
| Earnings (loss) per common share-diluted | $ | 0.31 | | | $ | (0.56 | ) | | $ | 1.13 | | | $ | 0.07 | |
| Weighted average shares outstanding-diluted | 16,515,657 | | | 16,345,095 | | | 16,461,679 | | | 16,325,320 | |
| | | | | | | | | | | | | | | | | | | |
| HEARTLAND FINANCIAL USA, INC. |
| CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
| DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA |
| | For the Quarter Ended |
| | 12/31/2010 | | | 9/30/2010 | | | 6/30/2010 | | | 3/31/2010 | | | 12/31/2009 | |
| Interest Income | | | | | | | | | |
| Interest and fees on loans and leases | $ | 37,440 | | | $ | 38,756 | | | $ | 38,270 | | | $ | 37,328 | | | $ | 38,191 | |
| Interest on securities and other: | | | | | | | | | |
| Taxable | 7,889 | | | 8,225 | | | 8,938 | | | 9,455 | | | 10,513 | |
| Nontaxable | 3,438 | | | 3,282 | | | 3,047 | | | 2,849 | | | 2,456 | |
| Interest on federal funds sold | — | | | — | | | 1 | | | — | | | 1 | |
| Interest on deposits in other financial institutions | 1 | | | 1 | | | 7 | | | 5 | | | 9 | |
| Total Interest Income | 48,768 | | | 50,264 | | | 50,263 | | | 49,637 | | | 51,170 | |
| Interest Expense | | | | | | | | | |
| Interest on deposits | 8,524 | | | 9,033 | | | 9,955 | | | 10,760 | | | 12,000 | |
| Interest on short-term borrow ings | 330 | | | 305 | | | 291 | | | 234 | & nbsp; | | 194 | |
| Interest on other borrowings | 4,068 | | | 4,213 | | | 4,208 | | | 3,959 | | | 4,250 | |
| Total Interest Expense | 12,922 | | | 13,551 | | | 14,454 | | | 14,953 | | | 16,444 | |
| Net Interest Income | 35,846 | | | 36,713 | | | 35,809 | | | 34,684 | | | 34,726 | |
| Provision for loan and lease losses | 8,860 | | | 4,799 | | | 9,955 | | | 8,894 | | | 10,775 | |
| Net Interest Income After Provision for Loan and Lease Losses | 26,986 | | | 31,914 | | | 25,854 | | | 25,790 | | | 23,951 | |
| Noninterest Income | | | | | | | | | |
| Service charges and fees | 3,537 | | | 3,665 | | | 3,494 | | | 3,204 | | | 3,257 | |
| Loan servicing income | 2,323 | | | 1,862 | | | 1,620 | | | 1,427 | | | 1,813 | |
| Trust fees | 2,428 | | | 2,267 | | | 2,330 | | | 2,181 | | | 2,156 | |
| Brokerage and insurance commissions | 948 | | | 739 | | | 785 | | | 712 | | | 697 | |
| Securities gains, net | 2,170 | | | 2,158 | | | 1,050 | | | 1,456 | | | 2,186 | |
| Gain (loss) on trading account securities | 107 | | | 18 | | | (264 | ) | | 48 | | | (61 | ) |
| Impairment loss on securities | — | | | — | | | — | | | — | | | (40 | ) |
| Gains on sale of loans | 3,813 | | | 2,394 | | | 1,083 | | | 798 | | | 1,168 | |
| Valuation adjustment on mortgage servicing rights | 1,239 | | | (1,239 | ) | | — | | | — | | | — | |
| Income on bank owned life insurance | 463 | | | 396 | | | 293 | | | 314 | | | 362 | |
| Gain on acquisition | — | | | — | | | — | | | — | | | 298 | |
| Other noninterest income | 1,265 | | | 349 | | | 443 | | | 453 | ; | | 1,534 | |
| Total Noninterest Income | 18,293 | | | 12,609 | | | 10,834 | | | 10,593 | | | 13,370 | |
| Noninterest Expense | | | | | | | | | |
| Salaries and employee benefits | 16,892 | | | 15,502 | | | 15,574 | | | 15,423 | | | 14,419 | |
| Occupancy | 2,339 | | | 2,287 | | | 2,201 | | | 2,294 | | | 2,220 | |
| Furniture and equipment | 1,543 | | | 1,515 | | | 1,599 | | | 1,447 | | | 1,638 | |
| Professional fees | 3,065 | | | 2,621 | | | 2,549 | | | 2,211 | | | 2,100 | |
| FDIC insurance assessments | 1,306 | | | 1,331 | | | 1,384 | | | 1,420 | | | 1,320 | |
| Advertising | 1,058 | | | 906 | | | 1,052 | | | 814 | | | 1,065 | |
| Goodwill impairment charge | — | | | 1,639 | | | — | | | — | | | 12,659 | |
| Intangible assets amortization | 146 | | | 149 | | | 145 | | | 151 | | | 198 | |
| Net loss on repossessed assets | 7,34 5 | | | 4,219 | | | 1,636 | | | 2,064 | | | 4,015 | |
| Other noninterest expenses | 3,623 | | | 3,277 | | | 3,435 | | | 3,077 | | | 3,800 | |
| Total Noninterest Expense | 37,317 | | | 33,446 | | | 29,575 | | | 28,901 | | | 43,434 | |
| Income (Loss) Before Income Taxes | 7,962 | | | 11,077 | | | 7,113 | | | 7,482 | | | (6,113 | ) |
| Income taxes | 1,464 | | | 4,187 | | | 2,035 | | | 2,160 | | | 1,762 | |
| Net Income (Loss) | 6,498 | | | 6,890 | | | 5,078 | | | 5,322 | | | (7,875 | ) |
| Net income available to noncontrolling interest, net of tax | 35 | | | 30 | | | 25 | | | 25 | | | 41 | |
| Net Income (Loss) Attributable to Heartland | 6,533 | | | 6,920 | | | 5,103 | | | 5,347 | | | (7,834 | ) |
| Preferred dividends and discount | (1,336 | ) | | (1,336 | ) | | (1,336 | ) | | (1,336 | ) | | (1,336 | ) |
| Net Income (Loss) Available to Common Stockholders | $ | 5,197 | | | $ | 5,584 | | | $ | 3,767 | | | $ | 4,011 | | | $ | (9,170 | ) |
| Earnings (loss) per common share-diluted | $ | 0.31 | | | $ | 0.34 | | | $ | 0.23 | | | $ | 0.24 | | | $ | (0.56 | ) |
| Weighted average shares outstanding-diluted | 16,515,657 | | | 16,465,650 | | | 16,459,978 | &n bsp; | | 16,435,844 | | | 16,345,095 | |
| | | | | | | | | | | | | | | | | | | |
| HEARTLAND FINANCIAL USA, INC. |
| CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
| DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA |
| | As Of |
| | 12/31/2010 | | | 9/30/2010 | | | 6/30/2010 | | | 3/31/2010 | | | 12/31/2009 | |
| Assets | | | | | | | | | |
| Cash and cash equivalents | $ | 62,572 | | | $ | 141,702 | | | $ | 75,771 | | | $ | 78,010 | | | $ | 182,410 | |
| Securities | 1,264,564 | | | 1,211,297 | | | 1,213,875 | | | 1,234,339 | | | 1,175,217 | |
| Loans held for sale | 23,904 | | | 41,047 | | | 25,750 | | | 16,002 | | | 17,310 | |
| Loans and leases: | | | | | | | | | |
| Held to maturity | 2,343,987 | | | 2,361,567 | | | 2,385,772 | | | 2,369,233 | | | 2,331,142 | |
| Loans covered by loss share agreements | 20,800 | | | 23,557 | | | 25,420 | | | 27,968 | | | 31,860 | |
| Allowance for loan and lease losses | (42,693 | ) | | (44,732 | ) | | (48,314 | ) | | (46,350 | ) | | (41,848 | ) |
| Loans and leases, net | 2,322,094 | | | 2,340,392 | | | 2,362,878 | | | 2,350,851 | | | 2,321,154 | |
| Premises, furniture and equipment, net | 121,012 | | | 121,940 | | | 122,066 | | | 121,033 | | | 118,835 | |
| Goodwill | 25,909 | | | 25,909 | | | 27,548 | | | 27,548 | | | 27,548 | |
| Other intangible assets, net | 13,466 | | | 11,510 | | | 12,426 | | | 12,320 | | | 12,380 | |
| Cash surrender value on life insurance | 61,981 | | | 62,038 | | | 62,113 | | | 61,525 | | | 55,516 | |
| Other real estate, net | 32,002 | | | 32,408 | | | 32,882 | | | 28,652 | | | 30,568 | |
| FDIC indemnification asset | 2,294 | | | 1,939 | | | 1,952 | | | 2,357 | | | 5,532 | |
| Other assets | 69,657 | | | 73,002 | | | 71,168 | | | 65,604 | | | 66,521 | |
| Total Assets | $ | 3,999,455 | | | $ | 4,063,184 | | | $ | 4,008,429 | | | $ | 3,998,241 | | | $ | 4,012,991 | |
| Liabilities and Equity | | | | | | | | | |
| Liabilities | | | | | | | | | |
| Deposits: | | | | | | | | | |
| Demand | $ | 580,589 | | | $ | 581,957 | | | $ | 537,468 | | | $ | 489,807 | | | $ | 460,645 | |
| Savings | 1,558,998 | | | 1,572,891 | | | 1,552,546 | | | 1,571,881 | | | 1,554,358 | |
| Brokered time deposits | 37,285 | | | 37,285 | | | 37,285 | | | 37,285 | | | 41,791 | |
| Other time deposits | 857,176 | | | 881,510 | | | 888,847 | | | 938,438 | | | 993,595 | |
| Total deposits | 3,034,048 | | | 3,073,643 | | | 3,016,146 | | | 3,037,411 | | | 3,050,389 | |
| Short-term borrowings | 235,864 | | | 196,533 | | | 200,515 | | | 190,732 | | | 162,349 | |
| Other borrowings | 362,527 | | | 413,448 | | | 425,994 | | | 426,039 | | | 451,429 | |
| Accrued expenses and other liabilities | 35,232 | | | 43,234 | | | 38,273 | | | 28,226 | | | 33,767 | |
| Total Liabilities | 3,667,671 | | | 3,726,858 | | | 3,680,928 | | | 3,682,408 | | | 3,697,934 | |
| Equity | | | | | | | | | |
| Preferred equity | 78,483 | | | 78,168 | | | 77,853 | | | 77,539 | | | 77,224 | |
| Common equity | 250,6 08 | | | 255,430 | | | 246,922 | | | 235,543 | | | 235,057 | |
| Total Heartland Stockholders' Equity | 329,091 | | | 333,598 | | | 324,775 | | | 313,082 | | | 312,281 | |
| Noncontrolling interest | 2,693 | | | 2,728 | | | 2,726 | | | 2,751 | | | 2,776 | |
| Total Equity | 331,784 | | | 336,326 | | | 327 ,501 | | | 315,833 | | | 315,057 | |
| Total Liabilities and Equity | $ | 3,999,455 | | | $ | 4,063,184 | | | $ | 4,008,429 | | | $ | 3,998,241 | | | $ | 4,012,991 | |
| Common Share Data | | | | | | | | | |
| Book value per common share | $ | 15.26 | | | $ | 15.58 | | | $ | 15.08 | | | $ | 14.40 | | | $ | 14.38 | |
| FAS 115 effect on book value per common share | $ | 0.60 | | | $ | 1.25 | | | $ | 0.93 | | | $ | 0.28 | | | $ | 0.38 | |
| Common shares outstanding, net of treasury stock | 16,425,055 | | | 16,392,091 | | | 16,375,460 | | | 16,357,874 | | | 16,346,362 | |
Tangible Capital Ratio (1) | 5.60 | % | | 5.63 | % | | 5.45 | % | | 5.17 | % | | 5.14 | % |
| | | | | | | | | | |
| (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 | | For the Year Ended |
| | 12/31/2010 | | | 12/31/2009 | | &nb sp; | 12/31/2010 | | | 12/31/2009 | |
| Average Balances | | | | | | | |
| Assets | $ | 4,091,276 | | | $ | 3,975,107 | | | $ | 4,030,382 | | | $ | 3,812,743 | |
| Loans and leases, net of unearned | 2,414,799 | | | 2,410,459 | | | 2,415,947 | | | 2,412,199 | |
| Deposits | 3,075,193 | | | 3,013,644 | | | 3,039,928 | | | 2,847,653 | |
| Earning assets | 3,637,735 | | | 3,525,625 | | | 3,595,690 | | | 3,438,005 | |
| Interest bearing liabilities | 3,095,791 | | | 3,127,792 | | | 3,127,389 | | | 3,018,240 | |
| Common stockholders' equity | 255,940 | | | 246,505 | | | 247,141 | | | 241,032 | |
| Total stockholders' equity | 336,827 | | | 326,254 | | | 327,577 | | | 320,335 | |
| Tangible common stockholders' equity | 227,696 | | | 203,573 | | | 217,451 | | | 197,749 | |
| | | | | | | | |
| Earnings Performance Ratios | | | | | | | |
| Annualized return on average assets | 0.50 | % | | (0.92 | )% | | 0.46 | % | | 0.03 | % |
| Annualized return on average common equity | 8.06 | % | | (14.76 | )% | &nbs p; | 7.51 | % | | 0.51 | % |
| Annualized return on average common tangible equity | 9.06 | % | | (17.87 | )% | | 8.53 | % | | 0.62 | % |
Annualized net interest margin (1) | 4.05 | % | | 4.04 | % | | 4.12 | % | | 3.99 | % |
Efficiency ratio (2) | 70.09 | % | | 92.19 | % | | 66.79 | % | | 73.07 | % |
| | | | | | | | |
(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 |
| | For the Quarter Ended |
| | 12/31/2010 | | | 9/30/2010 | | | 6/30/2010 | | | 3/31/2010 | | | 12/31/2009 | |
| Average Balances | | | | | | | | | |
| Assets | $ | 4,091,276 | | | $ | 4,012,107 | | | $ | 4,033,350 | | | $ | 3,984,794 | | | $ | 3,975,107 | |
| Loans and leases, net of unearned | 2,414,799 | | | 2,427,141 | | | 2,437,357 | | | 2,384,490 | | | 2,410,459 | |
| Deposits | 3,075,193 | | | 3,018,928 | | &n bsp; | 3,040,763 | | | 3,024,827 | | | 3,013,644 | |
| Earning assets | 3,637,735 | | | 3,602,953 | | | 3,632,056 | | | 3,510,015 | | | 3,525,625 | |
| Interest bearing liabilities | 3,095,791 | | | 3,084,742 | | | 3,165,862 | | | 3,163,161 | | | 3,127,792 | |
| Common stockholders' equity | 255,940 | | | 252,781 | | | 241,816 | | | 238,028 | | | 246,505 | |
| Total stockholders' equity | 336,827 | | | 333,346 | | | 322,110 | | | 318,027 | | | 326,254 | |
| Tangible common stockholders' equity | 227,696 | | | 222,771 | | | 211,640 | | | 207,695 | | | 203,573 | |
| | | | | | | | | | |
| Earnings Performance Ratios | | | | | | | | | |
| Annualized return on average assets | 0.50 | % | | 0.55 | % | | 0.37 | % | | 0.41 | % | | (0.92 | )% |
| Annualized return on average common equity | 8.06 | % | | 8.76 | % | | 6.25 | % | | 6.83 | % | | (14.76 | )% |
| Annualized return on average common tangible equity | 9.06 | % | | 9.94 | % | | 7.14 | % | | 7.83 | % | | (17.87 | )% |
Annualized net interest margin (1) | 4.05 | % | | 4.18 | % | | 4.09 | % | | 4.14 | % | | 4.04 | % |
Efficiency ratio (2) | 70.09 | % | | 69.05 | % | | 63.14 | % | | 64.27 | % | | 92.19 | % |
| | | | | | | | | | |
| (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 the Quarter Ended 12/31/2010 | | As of and For the Quarter Ended 9/30/2010 | | As of and For the Quarter Ended 6/30/2010 | As of and For the Quarter Ended 3/31/2010 | As of and For the Quarter Ended 12/31/2009 |
| Loan and Lease Data | | | | | | | | | |
| Loans held to maturity: | | | | | | | | | |
| Commercial and commercial real estate | $ | 1,718,993 | | | $ | 1,714,592 | | | $ | 1,740,856 | | | $ | 1,710,669 | | | $ | 1,670,108 | |
| Resi dential mortgage | 163,726 | | | 170,543 | | | 169,105 | | | 175,065 | | | 175,059 | |
| Agricultural and agricultural real estate | 250,943 | | | 260,393 | | | 255,576 | | | 258,239 | | | 256,780 | |
| Consumer | 214,515 | | | 219,731 | | | 223,800 | | | 228,311 | | | 231,709 | |
| Direct financing leases, net | 981 | | | 1,233 | | | 1,420 | | | 1,951 | | | 2,326 | |
| Unearned discount and deferred loan fees | (5,171 | ) | | (4,925 | ) | | (4,985 | ) | | (5,002 | ) | | (4,840 | ) |
| Total loans and leases held to maturity | $ | 2,343,987 | | | $ | 2,361,567 | | | $ | 2,385,772 | | | $ | 2,369,233 | | | $ | 2,331,142 | |
| Loans covered under loss share agreements: | | | | | | | | | |
| Commercial and commercial real estate | $ | 10,056 | | | $ | 11,703 | | | $ | 12,266 | | | $ | 13,241 | | | $ | 15,068 | |
| Residential mortgage | 5,792 | | | 6,545 | | | 7,148 | | | 8,064 | | | 8,984 | |
| Agricultural and agricultural real estate | 2,723 | | | 2,807 | | | 3,346 | | | 2,806 | | | 3,626 | |
| Consumer | 2,229 | | | 2,502 | | | 2,660 | | | 3,857 | | | 4,182 | |
| Total loans and leases covered under loss share agreements | $ | 20,800 | | | $ | 23,557 | | | $ | 25,420 | | | $ | 27,968 | | | $ | 31,860 | |
| Asset Quality | | | | | | | | | |
| Not covered under loss share agreements: | | | | | | | | | |
| Nonaccrual loans | $ | 90,512 | | | $ | 85,190 | | | $ | 84,925 | | | $ | 78,239 | | | $ | 78,118 | |
| Loans and leases past due ninety days or more as to interest or principal payments | 85 | | | — | | | — | | | 47 | | | 17 | |
| Other real estate owned | 31,731 | | | 32,129 | | | 32,554 | | | 28,290 | | | 30,205 | |
| Other repossessed assets | 302 | | | 492 | | | 486 | | | 528 | | | 501 | |
| Total nonperforming assets not covered under loss share agreements | $ | 122,630 | | | $ | 117,811 | | | $ | 117,965 | | | $ | 107,104 | | | $ | 108,841 | |
| Covered under loss share agreements: | | | | | | | | | |
| Nonaccrual loans | $ | 4,901 | | | $ | 5,330 | | | $ | 4,949 | | | $ | 4,621 | | | $ | 4,170 | |
| Loan s and leases past due ninety days or more as to interest or principal payments | — | | | — | | | — | | | — | | | — | |
| Other real estate owned | 271 | | | 279 | | | 328 | | | 362 | | | 363 | |
| Other repossessed assets | — | | | — | | | — | | | — | | | — | |
| Total nonperforming assets covered under loss share agreements | $ | 5,172 | | | $ | 5,609 | | | $ | 5,277 | | | $ | 4,983 | | | $ | 4,533 | |
| Allowance for Loan and Lease Losses | | | | | | | | | |
| Balance, beginning of period | $ | 44,732 | | | $ | 48,314 | | | $ | 46,350 | | | $ | 41,848 | | | $ | 42,260 | |
| Provision for loan and lease losses | 8,860 | | | 4,799 | | | 9,955 | | | 8,894 | | | 10,775 | |
| Charge offs on loans not covered by loss share agreements | (11,133 | ) | | (8,735 | ) | | (8,879 | ) | | (4,505 | ) | | (10,115 | ) |
| Charge offs on loans covered by loss share agreements | (445 | ) | | (43 | ) | | (46 | ) | | (264 | ) | | (1,344 | ) |
| Recoveries | 679 | | | 397 | | | 934 | | | 377 | | | 272 | |
| Balance, end of period | $ | 42,693 | | | $ | 44,732 | | | $ | 48,314 | | | $ | 46,350 | | | $ | 41,848 | |
| Asset Quality Ratios Excluding Assets Covered Under Loss Share Agreements | | | | | | | | | |
| Ratio of nonperforming loans and leases to total loans and leases | 3.87 | % | | 3.61 | % | | 3.56 | % | | 3.30 | % | | 3.35 | % |
| Ratio of nonperforming assets to total assets | 3.07 | % | | 2.90 | % | | 2.94 | % | | 2.68 | % | | 2.71 | % |
| Annualized ratio of net loan charge-offs to average loans and leases | 1.79 | % | | 1.37 | % | | 1.32 | % | | 0.74 | % | | 1.84 | % |
| Allowance for loan and lease losses as a percent of loans and leases | 1.82 | % | | 1.89 | % | | 2.03 | % | | 1.96 | % | | 1.80 | % |
| Allowance for loan and lease losses as a percent of nonperforming loans and leases | 47.12 | % | | 52.51 | % | | 56.89 | % | | 59.21 | % | | 53.56 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
HEARTLAND FINANCIAL USA, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) DOLLARS IN THOUSANDS |
| | For the Quarter Ended |
| | December 31, 2010 | | December 31, 2009 |
| | Average | | | | | | Average | | | | |
| | Balance | | Interest | | Rate | | Balance | | Interest | | Rate |
| Earning Assets | | | | | | | | | | | |
| Securities: | | | | | | | | | | | |
| Taxable | $ | 975,587 | | | $ | 7,889 | | | 3.21 | % | | $ | 936,525 | | | $ | 10,513 | | | 4.45 | % |
Nontaxable(1) | 287,595 | | | 4,375 | | | 6.04 | | | 213,662 | | | 3,462 | | | 6.43 | |
| Total securities | 1,263,182 | | 12,264 | | 12,264 | | | 3.85 | | | 1,150,187 | | | 13,975 | | | 4.82 | |
| Interest bearing deposits | 3,179 | | 3,179 | | 1 | | | 0.12 | | | 4,568 | | | 9 | | | 0.78 | |
| Federal funds sold | 742 | | | — | | | — | | | 2,238 | | | 1 | | | 0.18 | |
| Loans and leases: | | | | | | | &n bsp; | | | | |
Commercial and commercial real estate (1) | 1,730,992 | | | 24,867 | | | 5.70 | | | 1,699,909 | | | 25,221 | | | 5.89 | |
| Residential mortgage | 210,155 | | | 2,669 | | | 5.04 | | | 209,481 | | | 2,866 | | | 5.43 | |
Agricultural and agricultural real estate (1) | 255,061 | | | 3,862 | | | 6.01 | | | 263,216 | | | 4,086 | | | 6.16 | |
| Consumer | 217,488 | | | 4,998 | | | 9.12 | | | 235,369 | | | 5,180 | | | 8.73 | |
| Direct financing leases, net | 1,103 | | | 16 | | | 5.76 | | 2,484 | | 2,484 | | | 37 | | | 5.91 | |
| Fees on loans | — | | | 1,368 | | | — | | | — | | | 1,000 | | | — | |
| Less: allowance for loan and lease losses | (44,167 | ) | | — | | | — | | | (41,827 | ) | | — | | | — | |
| Net loans and leases | 2,370,632 | | | 37,780 | | | 6.32 | | | 2,368,632 | | | 38,390 | | | 6.43 | |
| Total earning assets | 3,637,735 | | | 50,045 | | | 5.46 | % | &n bsp; | 3,525,625 | | | 52,375 | | | 5.89 | % |
| Nonearning Assets | 453,541 | | | | | | | 449,482 | | | | | |
| Total Assets | $ | 4,091,276 | | | $ | 50,045 | | | | | $ | 3,975,107 | | | $ | 52,375 | | | |
| Interest Bearing Liabilities | | | | | | | | | | | |
| Interest bearing deposits | | | | | | | | | | | |
| Savings | $ | 1,558,542 | | | $ | 2,747 | | | 0.70 | | | $ | 1,469,913 | | | $ | 4,625 | | | 1.25 | |
| Time, $100,000 and over | 277,373 | | | 1,744 | | | 2.49 | | | 341,288 | | | 2,344 | | | 2.72 | |
| Other time deposits | 628,511 | | | 4,033 | | | 2.55 | | | 725,580 | | | 5,031 | | | 2.75 | |
| Short-term borrowings | 224,483 | | | 330 | | | 0.58 | | | 133,666 | | | 194 | | | 0.58 | |
| Other borrowings | 406,882 | | | 4,068 | | | 3.97 | | | 457,345 | | | 4,250 | | | 3.69 | |
| Total interest bearing liabilities | 3,095,791 | | | 12,922 | | | 1.66 | % | | 3,127,792 | | | 16,444 | | | 2.09 | % |
| Noninterest Bearing Liabilities | | | | | | | | | | | |
| Noninterest bearing deposits | 610,767 | | | | | | | 476,863 | | | | | |
| Accrued interest and other liabilities | 47,891 | | | | | | | 44,198 | | | | | |
| Total noninterest bearing liabilities | 658,658 | | | | | | | 521,061 | | | | | |
| Stockholders' Equity | 336,827 | | | | | | | 326,254 | | | | | |
| Total Liabilities and Stockholders' Equity | $ | 4,091,276 | | | | | | | $ | 3,975,107 | | | | | |
Net interest income (1) | | | $ | 37,123 | | | | | | | $ | 35,931 | | | |
Net interest spread (1) | | | | | 3.80 | % | | | | | | 3.81 | % |
Net interest income to total earning assets (1) | | | | | 4.05 | % | | | | | | 4.04 | % |
| Interest bearing liabilities to earning assets | 85.10 | % | | | | | | 88.72 | % | | | | |
| | | | | | | | | | | | |
| (1) Tax equivalent basis is calculated using an effective tax rate of 35% |
| | | | | | | | | | | | | | | | | | | | | | |
HEARTLAND FINANCIAL USA, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) DOLLARS IN THOUSANDS |
| | For the Twelve Months Ended |
| | December 31, 2010 | | December 31, 2009 |
| | Average | | | | | | Average | | | | |
| | Balance | | Interest | | Rate | | Balance | | Interest | | Rate |
| Earning Assets | | | | | | | | | | | |
| Securities: | | | | | | | | | | | |
| Taxable | $ | 956,976 | | | $ | 34,507 | | | 3.61 | % | | $ | 873,276 | | | $ | 39,782 | | | 4.56 | % |
Nontaxable(1) | 264,307 | | | 16,408 | | | 6.21 | | | 186,716 | | | 12,307 | &nb sp; | | 6.59 | |
| Total securities | 1,221,283 | | | 50,915 | | | 4.17 | | | 1,059,992 | | | 52,089 | | & nbsp; | 4.91 | |
| Interest bearing deposits | 3,541 | | | 14 | | | 0.40 | | | 2,943 | | | 27 | | | 0.92 | |
| Federal funds sold | 667 | | | 1 | | | 0.15 | | | 835 | | | 2 | | | 0.24 | |
| Loans and leases: | | | | | | | | | | | |
Commercial and commercial real estate (1) | 1,727,548 | | | 101,720 | | | 5.89 | | | 1,696,794 | | | 101,854 | | | 6.00 | |
| Residential mortgage | 203,596 | | | 10,663 | | | 5.24 | | | 219,303 | | | 12,596 | | | 5.74 | |
Agricultural and agricultural real estate (1) | 258,943 | | | 15,966 | | | 6.17 | | | 259,700 | | | 16,633 | | | 6.40 | |
| Consumer | 224,288 | | | 20,052 | | | 8.94 | | | 232,475 | | | 20,325 | | | 8.74 | |
| Direct financing leases, net | 1,572 | | | 92 | | | 5.85 | | | 3,927 | | | 213 | | | 5.42 | |
| Fees on loans | — | | 4,452 | | 4,452 | | | — | | | — | | | 4,085 | | | — | |
| Less: allowance for loan and lease losses | (45,748 | ) | | — | | | — | | | (37,964 | ) | | — | | | — | |
| Net loans and leases | 2,370,199 | | | 152,945 | | | 6.45 | | | 2,374,235 | | | 155,706 | | | 6.56 | |
| Total earning assets | 3,595,690 | | | 203,875 | | | 5.67 | % | | 3,438,005 | | | 207,824 | | | 6.04 | % |
| Nonearning Assets | 434,692 | | | | | | | 374,738 | | | | | |
| Total Assets | $ | 4,030,382 | | | $ | 203,875 | | | | | $ | 3,812,743 | | | $ | 207,824 | | | |
| Interest Bearing Liabilities | | | | | | | | | | | |
| Interest bearing deposits | | | | | | | | | | | |
| Savings | $ | 1,557,658 | | | $ | 13,677 | | | 0.88 | | | $ | 1,282,212 | | | $ | 18,407 | | | 1.44 | |
| Time, $100,000 and over | 296,325 | | | 7,534 | | | 2.54 | | | 373,159 | | | 11,202 | | | 3.00 | |
| Other time deposits | 649,892 | | | 17,061 | | | 2.63 | | | 754,814 | | | 23,135 | | | 3.06 | |
| Short-term borrowings | 200,389 | | | 1,160 | | | 0.58 | | & nbsp; | 143,239 | | | 733 | | | 0.51 | |
| Other borrowings | 423,125 | | | 16,448 | | | 3.89 | | | 464,816 | | | 17,053 | | | 3.67 | |
| Total interest bearing liabilities | 3,127,389 | | | 55,880 | | | 1.79 | % | | 3,018,240 | | | 70,530 | | | 2.34 | % |
| Noninterest Bearing Liabilities | | | | | | | | | | | |
| Noninterest bearing deposits | 536,053 | | | | | | | 437,468 | | | | | |
| Accrued interest and other liabilities | 39,363 | | | | | | | 36,700 | | | | | |
| Total noninterest bearing liabilities | 575,416 | | | | | | | 474,168 | | | | | |
| Stockholders' Equity | 327,577 | | | | | | | 320,335 | | | | | |
| Total Liabilities and Stockholders' Equity | $ | 4,030,382 | | | | | | | $ | 3,812,743 | | | | | |
Net interest income (1) | | | $ | 147,995 | | | | | | | $ | 137,294 | | | |
Net interest spread (1) | | | | | 3.88 | % | | | | | | 3.71 | % |
Net interest income to total earning assets (1) | | | | | 4.12 | % | | | | | | 3.99 | % |
| Interest bearing liabilities to earning assets | 86.98 | % | | | | | | 87.79 | % | | | | |
| | | | | | | | | | | | |
| (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 Qtr. Ended | As of and For
the Qtr. Ended | As of and For
the Qtr. Ended | As of and For
the Qtr. Ended | As of and For
the Qtr. Ended |
| | 12/31/2010 | 9/30/2010 | 6/30/2010 | 3/31/2010 | 12/31/2009 |
| Total Assets | | | | | |
| Dubuque Bank and Trust Company | $ | 1,131,622 | | $ | 1,201,966 | | $ | 1,128,580 | | $ | 1,160,474 | | $ | 1,249,124 | |
| New Mexico Bank & Trust | 913,776 | | 891,642 | | 878,518 | | 849,428 | | 868,295 | |
| Wisconsin Community Bank | 474,366 | | 461,822 | | 458,468 | | 456,510 | | 448,106 | |
| Rocky Mountain Bank | 417,781 | | 438,923 | | 439,241 | | 454,558 | | 469,723 | |
| Riverside Community Bank | 290,018 | | 297,272 | | 295,671 | | 283,195 | | 283,258 | |
| Galena State Bank & Trust Co. | 278,353 | | 289,558 | | 283,038 | | 287,495 | | 291,412 | |
| Arizona Bank & Trust | 223,574 | | 251,245 | | 267,959 | | 267,453 | | 258,280 | |
| First Community Bank | 115,675 | | 114,686 | | 118,887 | | 119,962 | | 121,492 | |
| Summit Bank & Trust | 95,414 | | 100,843 | | 97,332 | | 95,442 | | 97,025 | |
| Minnesota Bank & Trust | 58,386 | | 57,832 | | 55,722 | | 54,318 | | 49,330 | |
| Total Deposits | | | | | |
| Dubuque Bank and Trust Company | $ | 809,271 | | $ | 825,773 | | $ | 784,955 | | $ | 806,574 | | $ | 864,133 | |
| New Mexico Bank & Trust | 646,302 | | 655,724 | | 624,454 | | 608,030 | | 589,468 | |
| Wisconsin Community Bank | 392,432 | | 363,868 | | 358,034 | | 355,880 | | 358,994 | |
| Rocky Mountain Bank | 347,924 | | 349,853 | | 350,636 | | 363,842 | | 376,487 | |
| Riverside Community Bank | 241,184 | | 242,717 | | 242,964 | | 233,440 | | 232,459 | |
| Galena State Bank & Trust Co. | 236,647 | | 250,749 | | 243,964 | | 250,621 | | 253,073 | |
| Arizona Bank & Trust | 183,279 | | 204,663 | | 229,885 | | 230,699 | | 202,730 | |
| First Community Bank | 93,578 | | 92,802 | | 97,057 | | 98,691 | | 100,328 | |
| Summit Bank & Trust | 81,024 | | 79,823 | | 82,445 | | 81,414 | | 85,131 | |
| Minnesota Bank & Trust | 44,278 | | 41,316 | | 41,234 | | 39,912 | | 34,616 | |
| Net Income (Loss) | | | | | |
| Dubuque Bank and Trust Company | $ | 3,934 | | $ | 5,727 | | $ | 3,304 | | $ | 4,921 | | $ | 3,751 | |
| New Mexico Bank & Trust | 3,098 | | 2,972 | | 1,828 | | 2,341 | | 1,640 | |
| Wisconsin Community Bank | 1,581 | | 2,157 | | 2,271 | | 1,367 | | 770 | |
| Rocky Mountain Bank | 1,393 | | (695 | ) | 1,204 | | (596 | ) | (6,399 | ) |
| Riverside Community Bank | 190 | | (140 | ) | 290 | | 640 | | (55 | ) |
| Galena State Bank & Trust Co. | 1,000 | | 877 | | 967 | | 1,046 | | 663 | |
| Arizona Bank & Trust | (231 | ) | 42 | | (2,004 | ) | (2,900 | ) | (5,117 | ) |
| First Community Bank | 38 | | (374 | ) | 19 | | 399 | | (225 | ) |
| Summit Bank & Trust | (208 | ) | 201 | | 399 | | (118 | ) | (490 | ) |
| Minnesota Bank & Trust | (178 | ) | (147 | ) | (134 | ) | (123 | ) | (203 | ) |
| Return on Average Assets | | | | | |
| Dubuque Bank and Trust Company | 1.29 | % | 1.99 | % | 1.13 | % | 1.66 | % | 1.25 | % |
| New Mexico Bank & Trust | 1.33 | | 1.34 | | 0.83 | | 1.12 | | 0.79 | |
| Wisconsin Community Bank | 1.31 | | 1.85 | | 1.98 | | 1.23 | | 0.69 | |
| Rocky Mountain Bank | 1.27 | | (0.63 | ) | 1.08 | | (0.53 | ) | (5.30 | ) |
| Riverside Community Bank | 0.2 5 | | (0.19 | ) | 0.4 | | 0.93 | | (0.08 | ) |
| Galena State Bank & Trust Co. | 1.39 | | 1.21 | | 1.35 | | 1.46 | | 0.9 | |
| Arizona Bank & Trust | (0.38 | ) | (0.06 | ) | (2.95 | ) | (4.62 | ) | (7.60 | ) |
| First Community Bank | 0.13 | | (1.26 | ) | 0.06 | | 1.35 | | (0.72 | ) |
| Summit Bank & Trust | (0.84 | ) | 0.79 | | 1.65 | | (0.50 | ) | (1.94 | ) |
| Minnesota Bank & Trust | (1.23 | ) | (1.00 | ) | (1.00 | ) | (0.95 | ) | (1.95 | ) |
| Net Interest Margin as a Percentage of Average Earning Assets | | | | | |
| Dubuque Bank and Trust Company | 3.92 | % | 4.01 | % | 4.04 | % | 4.05 | % | 3.98 | % |
| New Mexico Bank & Trust | 4.00 | | 4.35 | | 3.94 | | 4.18 | | 4.23 | |
| Wisconsin Community Bank | 4.26 | | 4.60 | | 4.35 | | 3.80 | | 3.91 | |
| Rocky Mountain Bank | 3.76 | | 3.81 | | 3.79 | | 3.90 | | 3.68 | |
| Riverside Community Bank | 4.38 | | 4.30 | | 3.84 | | 3.95 | | 4.14 | |
| Galena State Bank and Trust Co. | 3.60 | | 3.53 | | 3.56 | | 3.48 | | 3.46 | |
| Arizona Bank & Trust | 3.72 | | 3.77 | | 3.46 | | 3.64 | | 3.58 | |
| First Community Bank | 3.02 | | 3.40 | | 3.58 | | 3.79 | | 4.24 | |
| Summit Bank & Trust | 2.78 | | 3.22 | | 3.98 | | 3.29 | | 3.00 | |
| Minnesota Bank & Trust | 4.07 | | 3.14 | | 3.24 | | 3.24 | | 4.16 | |
| | | | | | | | | | | | | | | | | | | |
HEARTLAND FINANCIAL USA, INC. SELECTED FINANCIAL DATA - SUBSIDIARY BANKS (Unaudited) DOLLARS IN THOUSANDS |
| | As of | | As of | | As of | | As of | | As of |
| | 12/31/2010 | | 9/30/2010 | | 6/30/2010 | | 3/31/2010 | | 12/31/2009 |
| Total Portfolio Loans and Leases | | | & nbsp; | | | | | | |
| Dubuque Bank and Trust Company | $ | 673,399 | | | $ | 672,401 | | | $ | 698,562 | | | $ | 681,668 | | | $ | 658,274 | |
| New Mexico Bank & Trust | 513,658 | | | 511,279 | | | 513,257 | | | 509,696 | | | 502,497 | |
| Wisconsin Community Bank | 320,711 | | | 325,543 | | | 323,024 | | | 314,102 | | | 274,487 | |
| Rocky Mountain Bank | 246,213 | | | 260,832 | | | 272,035 | | | 281,079 | | | 292,914 | |
| Riverside Community Bank | 162,706 | | | 165,539 | | | 159,137 | | | 157,511 | | | 161,280 | |
| Galena State Bank and Trust Co. | 137,153 | | | 131,955 | | | 133,666 | | | 131,539 | | | 134,104 | |
| Arizona Bank & Trust | 124,388 | | | 129,871 | | | 129,445 | | | 131,115 | | | 138,604 | |
| First Community Bank | 60,827 | | | 64,375 | | | 64,666 | | | 66,560 | | | 72,113 | |
| Summit Bank & Trust | 48,020 | | | 52,396 | | | 53,543 | | | 58,272 | | | 58,108 | |
| Minnesota Bank & Trust | 36,013 | | | 26,868 | | | 25,058 | | | 24,997 | | | 24,472 | |
| Allowance For Loan and Lease Losses | | | | | | | | | |
| Dubuque Bank and Trust Company | $ | 10,803 | | | $ | 9,874 | | | $ | 12,343 | | | $ | 10,395 | | | $ | 10,486 | |
| New Mexico Bank & Trust | 7,704 | | | 8,297 | | | 8,388 | | | 7,999 | | | 7,578 | |
| Wisconsin Community Bank | 3,847 | | | 4,518 | | | 4,306 | | | 5,328 | | | 5,390 | |
| Rocky Mountain Bank | 3,779 | | | 5,181 | | | 6,465 | | | 7,434 | | | 5,897 | |
| Riverside Community Bank | 3,524 | | | 3,109 | | | 2,751 | | | 2,425 | | | 2,395 | |
| Galena State Bank & Trust Co. | 1,811 | | | 1,743 | | | 1,543 | | | 1,466 | &nbs p; | | 1,989 | |
| Arizona Bank & Trust | 5,407 | | | 5,915 | | | 7,912 | | | 7,056 | | | 3,825 | |
| First Community Bank | 1,629 | | | 2,087 | | | 1,262 | | | 993 | | | 1,072 | |
| Summit Bank & Trust | 1,271 | | | 1,312 | | | 913 | | | 994 | | | 926 | |
| Minnesota Bank & Trust | 565 | | | 270 | | | 242 | | | 240 | | | 295 | |
| Nonperforming Loans and Leases | | | | | | | | | |
| Dubuque Bank and Trust Company | $ | 5,094 | | | $ | 4,880 | | | $ | 5,754 | | | $ | 6,408 | | | $ | 6,102 | |
| New Mexico Bank & Trust | 20,753 | | | 14,651 | | | 15,901 | | | 13,998 | | | 14,069 | |
| Wisconsin Community Bank | 12,702 | | | 12,070 | | | 10,159 | | | 15,773 | | | 14,396 | |
| Rocky Mountain Bank | 21,406 | | | 29,986 | | | 31,981 | | | 21,558 | | | 18,443 | ; |
| Riverside Community Bank | 7,611 | | | 7,662 | | | 7,722 | | | 5,543 | | | 8,104 | |
| Galena State Bank & Trust Co. | 5,308 | | | 2,976 | | | 2,605 | | | 1,372 | | | 1,545 | |
| Arizona Bank & Trust | 8,797 | | | 5,758 | | | 5,165 | | | 4,922 | | | 5,158 | |
| First Community Bank | 2,417 | | | 2,850 | | | 2,338 | | | 2,512 | | | 2,736 | |
| Summit Bank & Trust | 5,965 | | | 3,694 | | | 2,691 | | | 5,513 | | | 6,719 | |
| Minnesota Bank & Trust | 8 | | | — | | | — | | | — | | | 19 | |
| Allowance As a Percent of Total Loans and Leases | | | | | | | | | |
| Dubuque Bank and Trust Company | 1.60 | % | | 1.47 | % | | 1.77 | % | | 1.52 | % | | 1.59 | % |
| New Mexico Bank & Trust | 1.50 | | | 1.62 | | | 1.63 | | | 1.57 | | | 1.51 | |
| Wisconsin Community Bank | 1.20 | | | 1.39 | | | 1.33 | | | 1.70 | | | 1.96 | |
| Rocky Mountain Bank | 1.53 | | | 1.99 | | | 2.38 | | | 2.64 | | | 2.01 | |
| Riverside Community Bank | 2.17 | | | 1.88 | | | 1.73 | | | 1.54 | | | 1.48 | |
| Galena State Bank & Trust Co. | 1.32 | | | 1.32 | | | 1.15 | | | 1.11 | | | 1.48 | |
| Arizona Bank & Trust | 4.35 | | | 4.55 | | | 6.11 | | | 5.38 | | | 2.76 | |
| First Community Bank | 2.68 | | | 3.24 | | | 1.95 | | | 1.49 | | | 1.49 | |
| Summit Bank & Trust | 2.65 | | | 2.50 | | | 1.71 | | | 1.71 | | | 1.59 | |
| Minnesota Bank & Trust | 1.57 | | | 1.00 | | | 0.97 | | | 0.96 | | | 1.21 | |
