| CONTACT: | FOR IMMEDIATE RELEASE |
| John K. Schmidt | April 25, 2011 |
| Chief Operating Officer | |
| Chief Financial Officer | |
| (563) 589-1994 | |
| jschmidt@htlf.com | |
HEARTLAND FINANCIAL USA, INC. REPORTS FIRST QUARTER 2011 RESULTS
Quarterly Highlights
| ▪ | Net income of $4.2 million |
| ▪ | Net interest margin of 4.19% |
| ▪ | Provision for loan and lease losses totaled $10.0 million |
| ▪ | Demand deposits increased $56.9 million or 39% annualized since year-end 2010 |
| ▪ | Loans held to maturity increased $16.6 million or 3% annualized since year-end 2010 |
Quarter Ended March 31, | |||||||||||
| 2011 | 2010 | ||||||||||
| Net income (in millions) | $ | 4.2 | $ | 5.3 | |||||||
| Net income available to common stockholders (in millions) | 2.9 | 4.0 | |||||||||
| Diluted earnings per common share | 0.18 | 0.24 | |||||||||
| Return on average assets | 0.29 | % | 0.41 | % | |||||||
| Return on average common equity | 4.67 | 6.83 | |||||||||
| Net interest margin | 4.19 | 4.14 | |||||||||
“With earnings of $4.2 million, we are pleased to report another profitable quarter. Overall, however, Heartland's earnings fell short of expectations as a result of $10.0 million in provision expense.” Lynn B. Fuller, chairman, president and chief executive officer, Heartland Financial USA, Inc. | ||||
Dubuque, Iowa, Monday, April 25, 2011-Heartland Financial USA, Inc. (NASDAQ: HTLF) today reported net income of $4.2 million for the quarter ended March 31, 2011, compared to $5.3 million for the first quarter of 2010. Net income available to common stockholders was $2.9 million, or $0.18 per diluted common share, for the quarter ended March 31, 2011, compared to $4.0 million, or $0.24 per diluted common share, for the first quarter of 2010. Return on average common equity was 4.67 percent and return on average assets was 0.29 percent for the first quarter of 2011, compared to 6.83 percent and 0.41 percent, respectively, for the same quarter in 2010.
Commenting on Heartland's first quarter results, Lynn B. Fuller, Heartland's chairman, president and chief executive officer, said, “With earnings of $4.2 million, we are pleased to report another profitable quarter. Overall, however, Heartland's earnings fell short of expectations as a result of $10.0 million in provision expense.”
The decrease in net income for the first quarter of 2011 compared to the first quarter of 2010 resulted primarily from an increased provision for loan and lease losses, combined with increases in salaries and employee benefits, professional fees and other noninterest expenses. Earnings during the first quarter of 2011 were positively affected by increases in net interest income, gains on sale of loans and securities gains, along with a reduction in losses on repossessed assets.
Net Interest Margin Remains Above 4.00 Percent; Net Interest Income Remains Flat
Net interest margin, expressed as a percentage of average earning assets, was 4.19 percent during the first quarter of 2011 compared to 4.14 percent for the first quarter of 2010. The continuation of a net interest margin above 4.00 percent has been a direct result of continued price discipline, the effect of which would have been more significant had it not been for the amount of foregone interest on Heartland's nonaccrual loans, which had balances of $92.5 million or 3.89 percent of total loans and leases at March 31, 2011, and $82.9 million or 3.46 percent of total loans and leases at March 31, 2010.
Fuller said, “As a result of further declines in interest rates and considerable growth in demand deposits, we continue to benefit from an exceptional net interest margin, which reached 4.19 percent for the quarter. That's up five basis points from one year ago and the best margin we've seen in well over a decade. We've now maintained margin above 4 percent for seven consecutive quarters.”
Net interest income on a tax-equivalent basis totaled $37.0 million during the first quarter of 2011, an increase of $1.2 million or 3 percent from the $35.8 million recorded during the first quarter of 2010. 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 36 percent of total average interest bearing deposits during the first quarter of 2011 from 39 percent during the first quarter of 2010.
On a tax-equivalent basis, interest income in the first quarter of 2011 was $49.2 million compared to $50.8 million in the first quarter of 2010, a decrease of $1.5 million or 3 percent. The $73.9 million or 2 percent growth in average earning assets during the first quarter of 2011 was offset by the impact of a decrease in the average interest rate earned on these assets.
Interest expense for the first quarter of 2011 was $12.2 million, a decrease of $2.7 million or 18 percent from $14.9 million in the first quarter of 2010. Average interest bearing liabilities decreased $152.5 million or 5 percent for the quarter ended March 31, 2011, as compared to the same quarter in 2010, and the average interest rates paid on Heartland's deposits and borrowings declined 27 basis points to 1.65 percent in the first quarter of 2011 from 1.92 percent in 2010.
Noninterest Income Increases; Noninterest Expense Increases
Noninterest income was $12.6 million during the first quarter of 2011 compared to $10.6 million during the first quarter of 2010, an increase of $2.0 million or 19 percent. Contributing to this increase was growth of $298,000 or 14 percent in trust fees, $633,000 or 43 percent in securities gains and $604,000 or 76 percent in gains on sale of loans.
Loan servicing income increased $122,000 or 9 percent for the first quarter of 2011 as compared to the first quarter of 2010. 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 $984,000 during the first quarter of 2011 compared to $694,000 during the first quarter of 2010 and amortization of mortgage servicing rights was $864,000 during the first quarter of 2011 compared to $603,000 during the first quarter of 2010. 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 servicing of mortgage loans for others was $873,000 during the first quarter of 2011 compared to $722,000 during the first quarter of 2010. The portfolio of mortgage loans serviced for others by Heartland totaled $1.44 billion at March 31, 2011, compared to $1.18 billion at March 31, 2010.
“The integration of our new mortgage banking unit is progressing very well. We are fully operational in our Arizona, New Mexico, Colorado and Montana markets. New lending offices have also been staffed in the non-Heartland markets of Austin, Texas and Danville, California, operating under the name, National Residential Mortgage,” commented Fuller.
For the first quarter of 2011, noninterest expense totaled $32.9 million, an increase of $4.0 million or 14 percent from the same quarter of 2010. Contributing to this growth in noninterest expense was a $2.8 million or 18 percent increase in salaries and employee benefits, which was higher during the first quarter of 2011 as a result of 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 an $808,000 or 37 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, and a $837,000 or 27 percent increase in other noninterest expenses, half of which was associated with a writedown on land in Phoenix, Arizona, which had originally been purchased for branch expansion but has now been listed for sale.
Heartland's effective tax rate was 22.24 percent for the first quarter of 2011 compared to 28.77 percent for the first quarter of 2010. Federal low-income housing tax credits included in Heartland's effective tax rate totaled $138,000 during the first quarter of 2011 compared to $54,000 during the first quarter of 2010. 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 44.39 percent during the first quarter of 2011 compared to 28.37 percent during the first quarter of 2010. The tax-equivalent adjustment for this tax-exempt interest income was $1.3 million during the first quarter of 2011 compared to $1.1 million during the first quarter of 2010.
Loan Demand Remains Soft; Growth in Demand Deposits
At March 31, 2011, total assets were $4.00 billion, consistent with total assets at December 31, 2010. Securities represented 31 percent of total assets at March 31, 2011, compared to 32 percent of total assets at December 31, 2010.
Total loans and leases, exclusive of those covered by loss share agreements, were $2.36 billion at March 31, 2011, compared to $2.34 billion at year-end 2010, an increase of $16.6 million or 3 percent annualized. Commercial and commercial real estate loans, which totaled $1.73 billion at March 31, 2011, increased $8.5 million or 2 percent annualized since year-end 2010. This growth occurred at Dubuque Bank and Trust Company, Arizona Bank & Trust and Minnesota Bank & Trust. Residential mortgage loans, which totaled $169.5 million at March 31, 2011, increased $5.8 million or 14 percent annualized since year-end 2010. Agricultural and agricultural real estate loans, which totaled $253.2 million at March 31, 2011, increased $2.2 million or 4 percent annualized since year-end 2010.
Fuller stated, “Some of our markets are beginning to see new loan demand from local businesses. We view this as an encouraging sign of confidence in an improving economy.”
Total deposits were $3.08 billion at March 31, 2011, compared to $3.03 billion at year-end 2010, an increase of $48.3 million or 6 percent annualized. The composition of Heartland's deposits continued to shift from higher cost certificates of deposit to lower cost non-maturity deposits during the first quarter of 2011, as demand deposits increased $56.9 million or 39 percent annualized since year-end 2010 and savings deposits increased $11.0 million or 3 percent annualized since year-end 2010. Conversely, time deposits, exclusive of brokered deposits, experienced a decrease of $21.5 million or 10 percent annualized since year-end 2010. At March 31, 2011, brokered time deposits totaled $39.2 million or 1 percent of total deposits compared to $37.3 million or 1 percent of total deposits at December 31, 2010.
“Deposits increased by nearly $50 million from year-end, with demand deposits accounting for a majority of the
growth. Compared to one year ago, demand deposits are up 30 percent and time deposits are down nearly 11 percent,” Fuller added.
Allowance for Loan Losses Increases; Nonperforming Assets Increase
The allowance for loan and lease losses at March 31, 2011, was 1.83 percent of loans and leases and 47.55 percent of nonperforming loans compared to 1.82 percent of loans and leases and 47.12 percent of nonperforming loans at December 31, 2010, and 1.96 percent of loans and leases and 59.21 percent of nonperforming loans at March 31, 2010. The provision for loan losses was $10.0 million for the first quarter of 2011 compared to $8.9 million for the fourth quarter of 2010 and $8.9 million for the first quarter of 2010. Additions to the allowance for loan and lease losses continued during the first quarter of 2011 primarily as a result of the continuation of depressed economic conditions and the impact those conditions have on the appraised values of collateral. When updated appraisals have been obtained, many reflect a decline in property values due primarily to a lack of recent comparable sales and an extension of absorption periods.
Nonperforming loans, exclusive of those covered under the loss sharing agreements, were $91.0 million or 3.86 percent of total loans and leases at March 31, 2011, compared to $90.6 million or 3.87 percent of total loans and leases at December 31, 2010, and $78.3 million or 3.30 percent of total loans and leases at March 31, 2010. Included in the March 31, 2011, nonperforming loans was a $3.0 million loan past due ninety days or more that has since returned to performing status. Approximately 58 percent, or $53.0 million, of Heartland's nonperforming loans are to 25 borrowers, with $12.9 million originated by Rocky Mountain Bank, $9.1 million originated by New Mexico Bank & Trust, $8.2 million originated by Wisconsin Community Bank, $6.2 million originated by Summit Bank & Trust, $4.0 million originated by Arizona Bank & Trust, $4.0 million originated by Minnesota Bank & Trust, $3.1 million originated by Galena State Bank and Trust Co., $3.0 million originated by Dubuque Bank and Trust Company and $2.5 million originated by Riverside Community Bank. The portion of Heartland's nonperforming loans covered by government guarantees was $3.1 million at March 31, 2011. The industry breakdown for these nonperforming loans as identified using the North American Industry Classification System (NAICS) was $12.8 million to lessors of real estate, $8.2 million for lot and land development, $7.7 million for construction and development, $6.0 million for manufacturing and $4.1 million for other activities related to real estate. The remaining $14.2 million was distributed among eight other industries.
Delinquencies in each of the loan portfolios continue to be well-managed and no significant adverse trends have been identified. Loans delinquent 30 to 89 days as a percent of total loans were 0.61 percent at March 31, 2011, compared to 0.67 percent at December 31, 2010, 1.65 percent at September 30, 2010, 0.61 percent at June 30, 2010, and 1.22 percent at March 31, 2010.
Other real estate owned was $35.0 million at March 31, 2011, compared to $32.0 million at December 31, 2010, and $28.7 million at March 31, 2010. 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. During the first quarter of 2011, $5.3 million of other real estate owned was sold. As of this earnings release date, an additional $3.6 million of other real estate owned has been sold or is under agreement to sell prior to the end of the second quarter of 2011.
Net charge-offs on loans during the first quarter of 2011 were $9.4 million compared to $4.4 million during the first quarter of 2010. A large portion of the net charge-offs in both years was related to nonfarm nonresidential real estate and construction, land development and other land loans.
The schedule below summarizes the changes in Heartland's nonperforming assets, including those covered by loss share agreements, during the first quarter of 2011:
| (Dollars in thousands) | Nonperforming Loans | Other Real Estate Owned | Other Repossessed Assets | Total Nonperforming Assets | |||||||||||
| December 31, 2010 | $ | 95,498 | $ | 32,002 | $ | 302 | $ | 127,802 | |||||||
| Loan foreclosures | (8,973 | ) | 8,937 | 36 | — | ||||||||||
| Net loan charge offs | (9,431 | ) | — | — | (9,431 | ) | |||||||||
| New nonperforming loans | 26,259 | — | — | 26,259 | |||||||||||
Reduction of nonperforming loans(1) | (7,781 | ) | — | — | (7,781 | ) | |||||||||
| OREO/Repossessed sales proceeds | — | (4,822 | ) | (95 | ) | (4,917 | ) | ||||||||
| OREO/Repossessed assets writedowns, net | — | (1,110 | ) | — | (1,110 | ) | |||||||||
| Net activity at Citizens Finance Co. | — | — | (20 | ) | (20 | ) | |||||||||
| March 31, 2011 | $ | 95,572 | $ | 35,007 | $ | 223 | $ | 130,802 | |||||||
| (1) Includes principal reductions and transfers to performing status. | |||||||||||||||
Fuller concluded, “This quarter's earnings were negatively impacted by $10.0 million of provision expense that resulted primarily from lower appraised values on a handful of impaired loans. We believe that our allowance for loan losses is properly reserved and that further funding of the allowance should begin to ease as the economy improves. The reduction and resolution of nonperforming assets remains our highest priority at both the corporate and subsidiary bank level.”
Conference Call Details
Heartland will host a conference call for investors at 5:00 p.m. ET today. To participate, dial 877-941-2332 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 April 23, 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-
###
| HEARTLAND FINANCIAL USA, INC. | |||||||
| CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) | |||||||
| DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | |||||||
| For the Quarter Ended March 31, | |||||||
| 2011 | 2010 | ||||||
| Interest Income | |||||||
| Interest and fees on loans and leases | $ | 36,966 | $ | 37,328 | |||
| Interest on securities and other: | |||||||
| Taxable | 7,411 | 9,455 | |||||
| Nontaxable | 3,564 | 2,849 | |||||
| Interest on federal funds sold | — | — | |||||
| Interest on deposits in other financial institutions | 1 | 5 | |||||
| Total Interest Income | 47,942 | 49,637 | |||||
| Interest Expense | |||||||
| Interest on deposits | 8,026 | 10,760 | |||||
| Interest on short-term borrowings | 259 | 234 | |||||
| Interest on other borrowings | 3,936 | 3,959 | |||||
| Total Interest Expense | 12,221 | 14,953 | |||||
| Net Interest Income | 35,721 | 34,684 | |||||
| Provision for loan and lease losses | 10,009 | 8,894 | |||||
| Net Interest Income After Provision for Loan and Lease Losses | 25,712 | 25,790 | |||||
| Noninterest Income | |||||||
| Service charges and fees | 3,361 | 3,204 | |||||
| Loan servicing income | 1,549 | 1,427 | |||||
| Trust fees | 2,479 | 2,181 | |||||
| Brokerage and insurance commissions | 848 | 712 | |||||
| Securities gains, net | 2,089 | 1,456 | |||||
| Gain on trading account securities | 216 | 48 | |||||
| Gains on sale of loans | 1,402 | 798 | |||||
| Income on bank owned life insurance | 403 | 314 | |||||
| Other noninterest income | 261 | 453 | |||||
| Total Noninterest Income | 12,608 | 10,593 | |||||
| Noninterest Expense | |||||||
| Salaries and employee benefits | 18,186 | 15,423 | |||||
| Occupancy | 2,386 | 2,294 | |||||
| Furniture and equipment | 1,409 | 1,447 | |||||
| Professional fees | 3,019 | 2,211 | |||||
| FDIC insurance assessments | 1,345 | 1,420 | |||||
| Advertising | 850 | 814 | |||||
| Intangible assets amortization | 146 | 151 | |||||
| Net loss on repossessed assets | 1,632 | 2,064 | |||||
| Other noninterest expenses | 3,914 | 3,077 | |||||
| Total Noninterest Expense | 32,887 | 28,901 | |||||
| Income Before Income Taxes | 5,433 | 7,482 | |||||
| Income taxes | 1,212 | 2,160 | |||||
| Net Income | 4,221 | 5,322 | |||||
| Net income attributable to noncontrolling interest, net of tax | 16 | 25 | |||||
| Net Income Attributable to Heartland | 4,237 | 5,347 | |||||
| Preferred dividends and discount | (1,336 | ) | (1,336 | ) | |||
| Net Income Available to Common Stockholders | $ | 2,901 | $ | 4,011 | |||
| Earnings per common share-diluted | $ | 0.18 | $ | 0.24 | |||
| Weighted average shares outstanding-diluted | 16,557,353 | 16,435,844 | |||||
| HEARTLAND FINANCIAL USA, INC. | |||||||||||||||||||
| CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) | |||||||||||||||||||
| DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | |||||||||||||||||||
| For the Quarter Ended | |||||||||||||||||||
| 3/31/2011 | 12/31/2010 | 9/30/2010 | 6/30/2010 | 3/31/2010 | |||||||||||||||
| Interest Income | |||||||||||||||||||
| Interest and fees on loans and leases | $ | 36,966 | $ | 37,440 | $ | 38,756 | $ | 38,270 | $ | 37,328 | |||||||||
| Interest on securities and other: | |||||||||||||||||||
| Taxable | 7,411 | 7,889 | 8,225 | 8,938 | 9,455 | ||||||||||||||
| Nontaxable | 3,564 | 3,438 | 3,282 | 3,047 | 2,849 | ||||||||||||||
| Interest on federal funds sold | — | — | — | 1 | — | ||||||||||||||
| Interest on deposits in other financial institutions | 1 | 1 | 1 | 7 | 5 | ||||||||||||||
| Total Interest Income | 47,942 | 48,768 | 50,264 | 50,263 | 49,637 | ||||||||||||||
| Interest Expense | |||||||||||||||||||
| Interest on deposits | 8,026 | 8,524 | 9,033 | 9,955 | 10,760 | ||||||||||||||
| Interest on short-term borrowings | 259 | 330 | 305 | 291 | 234 | ||||||||||||||
| Interest on other borrowings | 3,936 | 4,068 | 4,213 | 4,208 | 3,959 | ||||||||||||||
| Total Interest Expense | 12,221 | 12,922 | 13,551 | 14,454 | 14,953 | ||||||||||||||
| Net Interest Income | 35,721 | 35,846 | 36,713 | 35,809 | 34,684 | ||||||||||||||
| Provision for loan and lease losses | 10,009 | 8,860 | 4,799 | 9,955 | 8,894 | ||||||||||||||
| Net Interest Income After Provision for Loan and Lease Losses | 25,712 | 26,986 | 31,914 | 25,854 | 25,790 | ||||||||||||||
| Noninterest Income | |||||||||||||||||||
| Service charges and fees | 3,361 | 3,537 | 3,665 | 3,494 | 3,204 | ||||||||||||||
| Loan servicing income | 1,549 | 2,323 | 1,862 | 1,620 | 1,427 | ||||||||||||||
| Trust fees | 2,479 | 2,428 | 2,267 | 2,330 | 2,181 | ||||||||||||||
| Brokerage and insurance commissions | 848 | 948 | 739 | 785 | 712 | ||||||||||||||
| Securities gains, net | 2,089 | 2,170 | 2,158 | 1,050 | 1,456 | ||||||||||||||
| Gain (loss) on trading account securities | 216 | 107 | 18 | (264 | ) | 48 | |||||||||||||
| Gains on sale of loans | 1,402 | 3,813 | 2,394 | 1,083 | 798 | ||||||||||||||
| Valuation adjustment on mortgage servicing rights | — | 1,239 | (1,239 | ) | — | — | |||||||||||||
| Income on bank owned life insurance | 403 | 463 | 396 | 293 | 314 | ||||||||||||||
| Other noninterest income | 261 | 1,265 | 349 | 443 | 453 | ||||||||||||||
| Total Noninterest Income | 12,608 | 18,293 | 12,609 | 10,834 | 10,593 | ||||||||||||||
| Noninterest Expense | |||||||||||||||||||
| Salaries and employee benefits | 18,186 | 16,892 | 15,502 | 15,574 | 15,423 | ||||||||||||||
| Occupancy | 2,386 | 2,339 | 2,287 | 2,201 | 2,294 | ||||||||||||||
| Furniture and equipment | 1,409 | 1,543 | 1,515 | 1,599 | 1,447 | ||||||||||||||
| Professional fees | 3,019 | 3,065 | 2,621 | 2,549 | 2,211 | ||||||||||||||
| FDIC insurance assessments | 1,345 | 1,306 | 1,331 | 1,384 | 1,420 | ||||||||||||||
| Advertising | 850 | 1,058 | 906 | 1,052 | 814 | ||||||||||||||
| Goodwill impairment charge | — | — | 1,639 | — | — | ||||||||||||||
| Intangible assets amortization | 146 | 146 | 149 | 145 | 151 | ||||||||||||||
| Net loss on repossessed assets | 1,632 | 7,345 | 4,219 | 1,636 | 2,064 | ||||||||||||||
| Other noninterest expenses | 3,914 | 3,623 | 3,277 | 3,435 | 3,077 | ||||||||||||||
| Total Noninterest Expense | 32,887 | 37,317 | 33,446 | 29,575 | 28,901 | ||||||||||||||
| Income Before Income Taxes | 5,433 | 7,962 | 11,077 | 7,113 | 7,482 | ||||||||||||||
| Income taxes | 1,212 | 1,464 | 4,187 | 2,035 | 2,160 | ||||||||||||||
| Net Income | 4,221 | 6,498 | 6,890 | 5,078 | 5,322 | ||||||||||||||
| Net income available to noncontrolling interest, net of tax | 16 | 35 | 30 | 25 | 25 | ||||||||||||||
| Net Income Attributable to Heartland | 4,237 | 6,533 | 6,920 | 5,103 | 5,347 | ||||||||||||||
| Preferred dividends and discount | (1,336 | ) | (1,336 | ) | (1,336 | ) | (1,336 | ) | (1,336 | ) | |||||||||
| Net Income Available to Common Stockholders | $ | 2,901 | $ | 5,197 | $ | 5,584 | $ | 3,767 | $ | 4,011 | |||||||||
| Earnings per common share-diluted | $ | 0.18 | $ | 0.31 | $ | 0.34 | $ | 0.23 | $ | 0.24 | |||||||||
| Weighted average shares outstanding-diluted | 16,557,353 | 16,515,657 | 16,465,650 | 16,459,978 | 16,435,844 | ||||||||||||||
| HEARTLAND FINANCIAL USA, INC. | |||||||||||||||||||
| CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) | |||||||||||||||||||
| DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | |||||||||||||||||||
| As Of | |||||||||||||||||||
| 3/31/2011 | 12/31/2010 | 9/30/2010 | 6/30/2010 | 3/31/2010 | |||||||||||||||
| Assets | |||||||||||||||||||
| Cash and cash equivalents | $ | 86,278 | $ | 62,572 | $ | 141,702 | $ | 75,771 | $ | 78,010 | |||||||||
| Securities | 1,244,447 | 1,264,564 | 1,211,297 | 1,213,875 | 1,234,339 | ||||||||||||||
| Loans held for sale | 8,317 | 23,904 | 41,047 | 25,750 | 16,002 | ||||||||||||||
| Loans and leases: | |||||||||||||||||||
| Held to maturity | 2,360,604 | 2,343,987 | 2,361,567 | 2,385,772 | 2,369,233 | ||||||||||||||
| Loans covered by loss share agreements | 19,201 | 20,800 | 23,557 | 25,420 | 27,968 | ||||||||||||||
| Allowance for loan and lease losses | (43,271 | ) | (42,693 | ) | (44,732 | ) | (48,314 | ) | (46,350 | ) | |||||||||
| Loans and leases, net | 2,336,534 | 2,322,094 | 2,340,392 | 2,362,878 | 2,350,851 | ||||||||||||||
| Premises, furniture and equipment, net | 119,954 | 121,012 | 121,940 | 122,066 | 121,033 | ||||||||||||||
| Goodwill | 25,909 | 25,909 | 25,909 | 27,548 | 27,548 | ||||||||||||||
| Other intangible assets, net | 13,440 | 13,466 | 11,510 | 12,426 | 12,320 | ||||||||||||||
| Cash surrender value on life insurance | 66,073 | 61,981 | 62,038 | 62,113 | 61,525 | ||||||||||||||
| Other real estate, net | 35,007 | 32,002 | 32,408 | 32,882 | 28,652 | ||||||||||||||
| FDIC indemnification asset | 1,396 | 2,294 | 1,939 | 1,952 | 2,357 | ||||||||||||||
| Other assets | 66,019 | 69,657 | 73,002 | 71,168 | 65,604 | ||||||||||||||
| Total Assets | $ | 4,003,374 | $ | 3,999,455 | $ | 4,063,184 | $ | 4,008,429 | $ | 3,998,241 | |||||||||
| Liabilities and Equity | |||||||||||||||||||
| Liabilities | |||||||||||||||||||
| Deposits: | |||||||||||||||||||
| Demand | $ | 637,452 | $ | 580,589 | $ | 581,957 | $ | 537,468 | $ | 489,807 | |||||||||
| Savings | 1,569,993 | 1,558,998 | 1,572,891 | 1,552,546 | 1,571,881 | ||||||||||||||
| Brokered time deposits | 39,225 | 37,285 | 37,285 | 37,285 | 37,285 | ||||||||||||||
| Other time deposits | 835,704 | 857,176 | 881,510 | 888,847 | 938,438 | ||||||||||||||
| Total deposits | 3,082,374 | 3,034,048 | 3,073,643 | 3,016,146 | 3,037,411 | ||||||||||||||
| Short-term borrowings | 194,934 | 235,864 | 196,533 | 200,515 | 190,732 | ||||||||||||||
| Other borrowings | 365,281 | 362,527 | 413,448 | 425,994 | 426,039 | ||||||||||||||
| Accrued expenses and other liabilities | 28,393 | 35,232 | 43,234 | 38,273 | 28,226 | ||||||||||||||
| Total Liabilities | 3,670,982 | 3,667,671 | 3,726,858 | 3,680,928 | 3,682,408 | ||||||||||||||
| Equity | |||||||||||||||||||
| Preferred equity | 78,798 | 78,483 | 78,168 | 77,853 | 77,539 | ||||||||||||||
| Common equity | 250,918 | 250,608 | 255,430 | 246,922 | 235,543 | ||||||||||||||
| Total Heartland Stockholders' Equity | 329,716 | 329,091 | 333,598 | 324,775 | 313,082 | ||||||||||||||
| Noncontrolling interest | 2,676 | 2,693 | 2,728 | 2,726 | 2,751 | ||||||||||||||
| Total Equity | 332,392 | 331,784 | 336,326 | 327,501 | 315,833 | ||||||||||||||
| Total Liabilities and Equity | $ | 4,003,374 | $ | 3,999,455 | $ | 4,063,184 | $ | 4,008,429 | $ | 3,998,241 | |||||||||
| Common Share Data | |||||||||||||||||||
| Book value per common share | $ | 15.28 | $ | 15.26 | $ | 15.58 | $ | 15.08 | $ | 14.4 | |||||||||
| ASC 320 effect on book value per common share | $ | 0.49 | $ | 0.60 | $ | 1.25 | $ | 0.93 | $ | 0.28 | |||||||||
| Common shares outstanding, net of treasury stock | 16,418,228 | 16,425,055 | 16,392,091 | 16,375,460 | 16,357,874 | ||||||||||||||
Tangible Capital Ratio (1) | 5.61 | % | 5.60 | % | 5.63 | % | 5.45 | % | 5.17 | % | |||||||||
| (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 | |||||||||||||||||||
| 3/31/2011 | 12/31/2010 | 9/30/2010 | 6/30/2010 | 3/31/2010 | |||||||||||||||
| Average Balances | |||||||||||||||||||
| Assets | $ | 4,009,863 | $ | 4,091,276 | $ | 4,012,107 | $ | 4,033,350 | $ | 3,984,794 | |||||||||
| Loans and leases, net of unearned | 2,399,656 | 2,414,799 | 2,427,141 | 2,437,357 | 2,384,490 | ||||||||||||||
| Deposits | 3,068,753 | 3,075,193 | 3,018,928 | 3,040,763 | 3,024,827 | ||||||||||||||
| Earning assets | 3,583,883 | 3,637,735 | 3,602,953 | 3,632,056 | 3,510,015 | ||||||||||||||
| Interest bearing liabilities | 3,010,629 | 3,095,791 | 3,084,742 | 3,165,862 | 3,163,161 | ||||||||||||||
| Common stockholders' equity | 251,833 | 255,940 | 252,781 | 241,816 | 238,028 | ||||||||||||||
| Total stockholders' equity | 333,016 | 336,827 | 333,346 | 322,110 | 318,027 | ||||||||||||||
| Tangible common stockholders' equity | 223,736 | 227,696 | 222,771 | 211,640 | 207,695 | ||||||||||||||
| Earnings Performance Ratios | |||||||||||||||||||
| Annualized return on average assets | 0.29 | % | 0.50 | % | 0.55 | % | 0.37 | % | 0.41 | % | |||||||||
| Annualized return on average common equity | 4.67 | % | 8.06 | % | 8.76 | % | 6.25 | % | 6.83 | % | |||||||||
| Annualized return on average common tangible equity | 5.26 | % | 9.06 | % | 9.94 | % | 7.14 | % | 7.83 | % | |||||||||
Annualized net interest margin (1) | 4.19 | % | 4.05 | % | 4.18 | % | 4.09 | % | 4.14 | % | |||||||||
Efficiency ratio (2) | 69.17 | % | 70.09 | % | 69.05 | % | 63.14 | % | 64.27 | % | |||||||||
| (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 | |||||||||||||||||||
| 3/31/2011 | 12/31/2010 | 9/30/2010 | 6/30/2010 | 3/31/2010 | |||||||||||||||
| Loan and Lease Data | |||||||||||||||||||
| Loans held to maturity: | |||||||||||||||||||
| Commercial and commercial real estate | $ | 1,727,530 | $ | 1,718,993 | $ | 1,714,592 | $ | 1,740,856 | $ | 1,710,669 | |||||||||
| Residential mortgage | 169,513 | 163,726 | 170,543 | 169,105 | 175,065 | ||||||||||||||
| Agricultural and agricultural real estate | 253,189 | 250,943 | 260,393 | 255,576 | 258,239 | ||||||||||||||
| Consumer | 214,682 | 214,515 | 219,731 | 223,800 | 228,311 | ||||||||||||||
| Direct financing leases, net | 876 | 981 | 1,233 | 1,420 | 1,951 | ||||||||||||||
| Unearned discount and deferred loan fees | (5,186 | ) | (5,171 | ) | (4,925 | ) | (4,985 | ) | (5,002 | ) | |||||||||
| Total loans and leases held to maturity | $ | 2,360,604 | $ | 2,343,987 | $ | 2,361,567 | $ | 2,385,772 | $ | 2,369,233 | |||||||||
| Loans covered under loss share agreements: | |||||||||||||||||||
| Commercial and commercial real estate | $ | 9,368 | $ | 10,056 | $ | 11,703 | $ | 12,266 | $ | 13,241 | |||||||||
| Residential mortgage | 5,291 | 5,792 | 6,545 | 7,148 | 8,064 | ||||||||||||||
| Agricultural and agricultural real estate | 2,628 | 2,723 | 2,807 | 3,346 | 2,806 | ||||||||||||||
| Consumer | 1,914 | 2,229 | 2,502 | 2,660 | 3,857 | ||||||||||||||
| Total loans and leases covered under loss share agreements | $ | 19,201 | $ | 20,800 | $ | 23,557 | $ | 25,420 | $ | 27,968 | |||||||||
| Asset Quality | |||||||||||||||||||
| Not covered under loss share agreements: | |||||||||||||||||||
| Nonaccrual loans | $ | 87,970 | $ | 90,512 | $ | 85,190 | $ | 84,925 | $ | 78,239 | |||||||||
| Loans and leases past due ninety days or more as to interest or principal payments | 3,038 | 85 | — | — | 47 | ||||||||||||||
| Other real estate owned | 34,532 | 31,731 | 32,129 | 32,554 | 28,290 | ||||||||||||||
| Other repossessed assets | 223 | 302 | 492 | 486 | 528 | ||||||||||||||
| Total nonperforming assets not covered under loss share agreements | $ | 125,763 | $ | 122,630 | $ | 117,811 | $ | 117,965 | $ | 107,104 | |||||||||
| Covered under loss share agreements: | |||||||||||||||||||
| Nonaccrual loans | $ | 4,564 | $ | 4,901 | $ | 5,330 | $ | 4,949 | $ | 4,621 | |||||||||
| Loans and leases past due ninety days or more as to interest or principal payments | — | — | — | — | — | ||||||||||||||
| Other real estate owned | 475 | 271 | 279 | 328 | 362 | ||||||||||||||
| Other repossessed assets | — | — | — | — | — | ||||||||||||||
| Total nonperforming assets covered under loss share agreements | $ | 5,039 | $ | 5,172 | $ | 5,609 | $ | 5,277 | $ | 4,983 | |||||||||
| Allowance for Loan and Lease Losses | |||||||||||||||||||
| Balance, beginning of period | $ | 42,693 | $ | 44,732 | $ | 48,314 | $ | 46,350 | $ | 41,848 | |||||||||
| Provision for loan and lease losses | 10,009 | 8,860 | 4,799 | 9,955 | 8,894 | ||||||||||||||
| Charge-offs on loans not covered by loss share agreements | (9,785 | ) | (11,133 | ) | (8,735 | ) | (8,879 | ) | (4,505 | ) | |||||||||
| Charge-offs on loans covered by loss share agreements | (238 | ) | (445 | ) | (43 | ) | (46 | ) | (264 | ) | |||||||||
| Recoveries | 592 | 679 | 397 | 934 | 377 | ||||||||||||||
| Balance, end of period | $ | 43,271 | $ | 42,693 | $ | 44,732 | $ | 48,314 | $ | 46,350 | |||||||||
| Asset Quality Ratios Excluding Assets Covered Under Loss Share Agreements | |||||||||||||||||||
| Ratio of nonperforming loans and leases to total loans and leases | 3.86 | % | 3.87 | % | 3.61 | % | 3.56 | % | 3.30 | % | |||||||||
| Ratio of nonperforming assets to total assets | 3.14 | % | 3.07 | % | 2.90 | % | 2.94 | % | 2.68 | % | |||||||||
| Annualized ratio of net loan charge-offs to average loans and leases | 1.59 | % | 1.79 | % | 1.37 | % | 1.32 | % | 0.74 | % | |||||||||
| Allowance for loan and lease losses as a percent of loans and leases | 1.83 | % | 1.82 | % | 1.89 | % | 2.03 | % | 1.96 | % | |||||||||
| Allowance for loan and lease losses as a percent of nonperforming loans and leases | 47.55 | % | 47.12 | % | 52.51 | % | 56.89 | % | 59.21 | % | |||||||||
HEARTLAND FINANCIAL USA, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) DOLLARS IN THOUSANDS | |||||||||||||||||||||
| For the Quarter Ended | |||||||||||||||||||||
| March 31, 2011 | March 31, 2010 | ||||||||||||||||||||
| Average | Average | ||||||||||||||||||||
| Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||
| Earning Assets | |||||||||||||||||||||
| Securities: | |||||||||||||||||||||
| Taxable | $ | 923,713 | $ | 7,411 | 3.25 | % | $ | 926,161 | $ | 9,455 | 4.14 | % | |||||||||
Nontaxable(1) | 298,671 | 4,509 | 6.12 | 239,587 | 3,807 | 6.44 | |||||||||||||||
| Total securities | 1,222,384 | 11,920 | 3.95 | 1,165,748 | 13,262 | 4.61 | |||||||||||||||
| Interest bearing deposits | 4,381 | 1 | 0.09 | 2,848 | 5 | 0.71 | |||||||||||||||
| Federal funds sold | 332 | — | — | 617 | — | — | |||||||||||||||
| Loans and leases: | |||||||||||||||||||||
Commercial and commercial real estate (1) | 1,746,757 | 24,957 | 5.79 | 1,695,161 | 24,821 | 5.94 | |||||||||||||||
| Residential mortgage | 185,299 | 2,410 | 5.27 | 196,770 | 2,720 | 5.61 | |||||||||||||||
Agricultural and agricultural real estate (1) | 252,999 | 3,840 | 6.16 | 258,770 | 3,984 | 6.24 | |||||||||||||||
| Consumer | 213,668 | 4,850 | 9.21 | 231,660 | 4,974 | 8.71 | |||||||||||||||
| Direct financing leases, net | 933 | 13 | 5.65 | 2,129 | 32 | 6.10 | |||||||||||||||
| Fees on loans | — | 1,254 | — | — | 986 | — | |||||||||||||||
| Less: allowance for loan and lease losses | (42,870 | ) | — | — | (43,688 | ) | — | — | |||||||||||||
| Net loans and leases | 2,356,786 | 37,324 | 6.42 | 2,340,802 | 37,517 | 6.50 | |||||||||||||||
| Total earning assets | 3,583,883 | 49,245 | 5.57 | % | 3,510,015 | 50,784 | 5.87 | % | |||||||||||||
| Nonearning Assets | 425,980 | 474,779 | |||||||||||||||||||
| Total Assets | $ | 4,009,863 | $ | 49,245 | $ | 3,984,794 | $ | 50,784 | |||||||||||||
| Interest Bearing Liabilities | |||||||||||||||||||||
| Interest bearing deposits | |||||||||||||||||||||
| Savings | $ | 1,553,295 | $ | 2,547 | 0.67 | $ | 1,549,140 | $ | 4,136 | 1.08 | |||||||||||
| Time, $100,000 and over | 270,447 | 1,610 | 2.41 | 324,888 | 2,070 | 2.58 | |||||||||||||||
| Other time deposits | 613,682 | 3,869 | 2.56 | 683,859 | 4,554 | 2.70 | |||||||||||||||
| Short-term borrowings | 210,032 | 259 | 0.50 | 169,237 | 234 | 0.56 | |||||||||||||||
| Other borrowings | 363,173 | 3,936 | 4.40 | 436,037 | 3,959 | 3.68 | |||||||||||||||
| Total interest bearing liabilities | 3,010,629 | 12,221 | 1.65 | % | 3,163,161 | 14,953 | 1.92 | % | |||||||||||||
| Noninterest Bearing Liabilities | |||||||||||||||||||||
| Noninterest bearing deposits | 631,329 | 466,940 | |||||||||||||||||||
| Accrued interest and other liabilities | 34,889 | 36,666 | |||||||||||||||||||
| Total noninterest bearing liabilities | 666,218 | 503,606 | |||||||||||||||||||
| Stockholders' Equity | 333,016 | 318,027 | |||||||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 4,009,863 | $ | 3,984,794 | |||||||||||||||||
Net interest income (1) | $ | 37,024 | $ | 35,831 | |||||||||||||||||
Net interest spread (1) | 3.93 | % | 3.95 | % | |||||||||||||||||
Net interest income to total earning assets (1) | 4.19 | % | 4.14 | % | |||||||||||||||||
| Interest bearing liabilities to earning assets | 84.00 | % | 90.12 | % | |||||||||||||||||
| (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 | |||||||||||||||
| 3/31/2011 | 12/31/2010 | 9/30/2010 | 6/30/2010 | 3/31/2010 | |||||||||||
| Total Assets | |||||||||||||||
| Dubuque Bank and Trust Company | $ | 1,152,387 | $ | 1,131,622 | $ | 1,201,966 | $ | 1,128,580 | $ | 1,160,474 | |||||
| New Mexico Bank & Trust | 880,980 | 913,776 | 891,642 | 878,518 | 849,428 | ||||||||||
| Wisconsin Community Bank | 469,305 | 474,366 | 461,822 | 458,468 | 456,510 | ||||||||||
| Rocky Mountain Bank | 417,846 | 417,781 | 438,923 | 439,241 | 454,558 | ||||||||||
| Riverside Community Bank | 302,057 | 290,018 | 297,272 | 295,671 | 283,195 | ||||||||||
| Galena State Bank & Trust Co. | 275,807 | 278,353 | 289,558 | 283,038 | 287,495 | ||||||||||
| Arizona Bank & Trust | 231,020 | 223,574 | 251,245 | 267,959 | 267,453 | ||||||||||
| First Community Bank | 118,000 | 115,675 | 114,686 | 118,887 | 119,962 | ||||||||||
| Summit Bank & Trust | 93,600 | 95,414 | 100,843 | 97,332 | 95,442 | ||||||||||
| Minnesota Bank & Trust | 62,251 | 58,386 | 57,832 | 55,722 | 54,318 | ||||||||||
| Total Deposits | |||||||||||||||
| Dubuque Bank and Trust Company | $ | 839,634 | $ | 809,271 | $ | 825,773 | $ | 784,955 | $ | 806,574 | |||||
| New Mexico Bank & Trust | 659,373 | 646,302 | 655,724 | 624,454 | 608,030 | ||||||||||
| Wisconsin Community Bank | 374,758 | 392,432 | 363,868 | 358,034 | 355,880 | ||||||||||
| Rocky Mountain Bank | 348,723 | 347,924 | 349,853 | 350,636 | 363,842 | ||||||||||
| Riverside Community Bank | 245,639 | 241,184 | 242,717 | 242,964 | 233,440 | ||||||||||
| Galena State Bank & Trust Co. | 239,445 | 236,647 | 250,749 | 243,964 | 250,621 | ||||||||||
| Arizona Bank & Trust | 188,415 | 183,279 | 204,663 | 229,885 | 230,699 | ||||||||||
| First Community Bank | 95,790 | 93,578 | 92,802 | 97,057 | 98,691 | ||||||||||
| Summit Bank & Trust | 80,327 | 81,024 | 79,823 | 82,445 | 81,414 | ||||||||||
| Minnesota Bank & Trust | 46,205 | 44,278 | 41,316 | 41,234 | 39,912 | ||||||||||
| Net Income (Loss) | |||||||||||||||
| Dubuque Bank and Trust Company | $ | 4,858 | $ | 3,934 | $ | 5,727 | $ | 3,304 | $ | 4,921 | |||||
| New Mexico Bank & Trust | 958 | 3,098 | 2,972 | 1,828 | 2,341 | ||||||||||
| Wisconsin Community Bank | 1,466 | 1,581 | 2,157 | 2,271 | 1,367 | ||||||||||
| Rocky Mountain Bank | (630 | ) | 1,393 | (695 | ) | 1,204 | (596 | ) | |||||||
| Riverside Community Bank | (212 | ) | 190 | (140 | ) | 290 | 640 | ||||||||
| Galena State Bank & Trust Co. | 579 | 1,000 | 877 | 967 | 1,046 | ||||||||||
| Arizona Bank & Trust | (1,452 | ) | (231 | ) | 42 | (2,004 | ) | (2,900 | ) | ||||||
| First Community Bank | 100 | 38 | (374 | ) | 19 | 399 | |||||||||
| Summit Bank & Trust | (604 | ) | (208 | ) | 201 | 399 | (118 | ) | |||||||
| Minnesota Bank & Trust | (81 | ) | (178 | ) | (147 | ) | (134 | ) | (123 | ) | |||||
| Return on Average Assets | |||||||||||||||
| Dubuque Bank and Trust Company | 1.72 | % | 1.29 | % | 1.99 | % | 1.13 | % | 1.66 | % | |||||
| New Mexico Bank & Trust | 0.43 | 1.33 | 1.34 | 0.83 | 1.12 | ||||||||||
| Wisconsin Community Bank | 1.26 | 1.31 | 1.85 | 1.98 | 1.23 | ||||||||||
| Rocky Mountain Bank | (0.61 | ) | 1.27 | (0.63 | ) | 1.08 | (0.53 | ) | |||||||
| Riverside Community Bank | (0.28 | ) | 0.25 | (0.19 | ) | 0.40 | 0.93 | ||||||||
| Galena State Bank & Trust Co. | 0.85 | 1.39 | 1.21 | 1.35 | 1.46 | ||||||||||
| Arizona Bank & Trust | (2.58 | ) | (0.38 | ) | (0.06 | ) | (2.95 | ) | (4.62 | ) | |||||
| First Community Bank | 0.35 | 0.13 | (1.26 | ) | 0.06 | 1.35 | |||||||||
| Summit Bank & Trust | (2.59 | ) | (0.84 | ) | 0.79 | 1.65 | (0.50 | ) | |||||||
| Minnesota Bank & Trust | (0.53 | ) | (1.23 | ) | (1.00 | ) | (1.00 | ) | (0.95 | ) | |||||
| Net Interest Margin as a Percentage of Average Earning Assets | |||||||||||||||
| Dubuque Bank and Trust Company | 3.98 | % | 3.92 | % | 4.01 | % | 4.04 | % | 4.05 | % | |||||
| New Mexico Bank & Trust | 4.34 | 4.00 | 4.35 | 3.94 | 4.18 | ||||||||||
| Wisconsin Community Bank | 4.57 | 4.26 | 4.60 | 4.35 | 3.80 | ||||||||||
| Rocky Mountain Bank | 3.91 | 3.76 | 3.81 | 3.79 | 3.90 | ||||||||||
| Riverside Community Bank | 4.01 | 4.38 | 4.30 | 3.84 | 3.95 | ||||||||||
| Galena State Bank and Trust Co. | 3.73 | 3.60 | 3.53 | 3.56 | 3.48 | ||||||||||
| Arizona Bank & Trust | 4.25 | 3.72 | 3.77 | 3.46 | 3.64 | ||||||||||
| First Community Bank | 2.80 | 3.02 | 3.40 | 3.58 | 3.79 | ||||||||||
| Summit Bank & Trust | 2.99 | 2.78 | 3.22 | 3.98 | 3.29 | ||||||||||
| Minnesota Bank & Trust | 4.75 | 4.07 | 3.14 | 3.24 | 3.24 | ||||||||||
HEARTLAND FINANCIAL USA, INC. SELECTED FINANCIAL DATA - SUBSIDIARY BANKS (Unaudited) DOLLARS IN THOUSANDS | |||||||||||||||||||
| As of | |||||||||||||||||||
| 3/31/2011 | 12/31/2010 | 9/30/2010 | 6/30/2010 | 3/31/2010 | |||||||||||||||
| Total Portfolio Loans and Leases | |||||||||||||||||||
| Dubuque Bank and Trust Company | $ | 689,178 | $ | 673,399 | $ | 672,401 | $ | 698,562 | $ | 681,668 | |||||||||
| New Mexico Bank & Trust | 513,568 | 513,658 | 511,279 | 513,257 | 509,696 | ||||||||||||||
| Wisconsin Community Bank | 320,841 | 320,711 | 325,543 | 323,024 | 314,102 | ||||||||||||||
| Rocky Mountain Bank | 238,201 | 246,213 | 260,832 | 272,035 | 281,079 | ||||||||||||||
| Riverside Community Bank | 161,238 | 162,706 | 165,539 | 159,137 | 157,511 | ||||||||||||||
| Galena State Bank and Trust Co. | 136,210 | 137,153 | 131,955 | 133,666 | 131,539 | ||||||||||||||
| Arizona Bank & Trust | 134,254 | 124,388 | 129,871 | 129,445 | 131,115 | ||||||||||||||
| First Community Bank | 59,176 | 60,827 | 64,375 | 64,666 | 66,560 | ||||||||||||||
| Summit Bank & Trust | 47,024 | 48,020 | 52,396 | 53,543 | 58,272 | ||||||||||||||
| Minnesota Bank & Trust | 40,197 | 36,013 | 26,868 | 25,058 | 24,997 | ||||||||||||||
| Allowance For Loan and Lease Losses | |||||||||||||||||||
| Dubuque Bank and Trust Company | $ | 10,412 | $ | 10,803 | $ | 9,874 | $ | 12,343 | $ | 10,395 | |||||||||
| New Mexico Bank & Trust | 7,277 | 7,704 | 8,297 | 8,388 | 7,999 | ||||||||||||||
| Wisconsin Community Bank | 3,369 | 3,847 | 4,518 | 4,306 | 5,328 | ||||||||||||||
| Rocky Mountain Bank | 4,425 | 3,779 | 5,181 | 6,465 | 7,434 | ||||||||||||||
| Riverside Community Bank | 3,693 | 3,524 | 3,109 | 2,751 | 2,425 | ||||||||||||||
| Galena State Bank & Trust Co. | 2,278 | 1,811 | 1,743 | 1,543 | 1,466 | ||||||||||||||
| Arizona Bank & Trust | 6,018 | 5,407 | 5,915 | 7,912 | 7,056 | ||||||||||||||
| First Community Bank | 1,572 | 1,629 | 2,087 | 1,262 | 993 | ||||||||||||||
| Summit Bank & Trust | 1,103 | 1,271 | 1,312 | 913 | 994 | ||||||||||||||
| Minnesota Bank & Trust | 636 | 565 | 270 | 242 | 240 | ||||||||||||||
| Nonperforming Loans and Leases | |||||||||||||||||||
| Dubuque Bank and Trust Company | $ | 9,741 | $ | 5,094 | $ | 4,880 | $ | 5,754 | $ | 6,408 | |||||||||
| New Mexico Bank & Trust | 15,979 | 20,753 | 14,651 | 15,901 | 13,998 | ||||||||||||||
| Wisconsin Community Bank | 11,776 | 12,702 | 12,070 | 10,159 | 15,773 | ||||||||||||||
| Rocky Mountain Bank | 18,303 | 21,406 | 29,986 | 31,981 | 21,558 | ||||||||||||||
| Riverside Community Bank | 11,443 | 7,611 | 7,662 | 7,722 | 5,543 | ||||||||||||||
| Galena State Bank & Trust Co. | 6,259 | 5,308 | 2,976 | 2,605 | 1,372 | ||||||||||||||
| Arizona Bank & Trust | 6,959 | 8,797 | 5,758 | 5,165 | 4,922 | ||||||||||||||
| First Community Bank | 3,156 | 2,417 | 2,850 | 2,338 | 2,512 | ||||||||||||||
| Summit Bank & Trust | 4,527 | 5,965 | 3,694 | 2,691 | 5,513 | ||||||||||||||
| Minnesota Bank & Trust | 2,229 | 8 | — | — | — | ||||||||||||||
| Allowance As a Percent of Total Loans and Leases | |||||||||||||||||||
| Dubuque Bank and Trust Company | 1.51 | % | 1.60 | % | 1.47 | % | 1.77 | % | 1.52 | % | |||||||||
| New Mexico Bank & Trust | 1.42 | 1.50 | 1.62 | 1.63 | 1.57 | ||||||||||||||
| Wisconsin Community Bank | 1.05 | 1.20 | 1.39 | 1.33 | 1.70 | ||||||||||||||
| Rocky Mountain Bank | 1.86 | 1.53 | 1.99 | 2.38 | 2.64 | ||||||||||||||
| Riverside Community Bank | 2.29 | 2.17 | 1.88 | 1.73 | 1.54 | ||||||||||||||
| Galena State Bank & Trust Co. | 1.67 | 1.32 | 1.32 | 1.15 | 1.11 | ||||||||||||||
| Arizona Bank & Trust | 4.48 | 4.35 | 4.55 | 6.11 | 5.38 | ||||||||||||||
| First Community Bank | 2.66 | 2.68 | 3.24 | 1.95 | 1.49 | ||||||||||||||
| Summit Bank & Trust | 2.35 | 2.65 | 2.50 | 1.71 | 1.71 | ||||||||||||||
| Minnesota Bank & Trust | 1.58 | 1.57 | 1.00 | 0.97 | 0.96 | ||||||||||||||