|
| |
| CONTACT: | FOR IMMEDIATE RELEASE |
| Bryan R. McKeag | April 28, 2014 |
| Executive Vice President | |
| Chief Financial Officer | |
| (563) 589-1994 | |
| bmckeag@htlf.com | |
HEARTLAND FINANCIAL USA, INC. REPORTS FIRST QUARTER 2014 RESULTS
Quarterly Highlights
|
| |
| § | Net income available to common stockholders of $6.9 million or $0.36 per diluted common share |
| § | Net interest margin increased 10 basis points from the prior quarter to 3.92%, the highest since second quarter 2012 |
| § | Loan growth of $80.8 million or 9% annualized since year-end 2013 |
| § | Nonperforming loans decreased $10.5 million or 25% since year-end 2013 |
| § | Merger of Freedom Bank into Riverside Community Bank completed in March 2014 |
|
| | | | | | | |
| | Quarter Ended March 31, |
| | 2014 | | 2013 |
| Net income (in millions) | $ | 6.9 |
| | $ | 12.6 |
|
| Net income available to common stockholders (in millions) | 6.7 |
| | 12.1 |
|
| Diluted earnings per common share | 0.36 |
| | 0.70 |
|
| | | | |
| Return on average assets | 0.47 | % | | 1.00 | % |
| Return on average common equity | 7.41 |
| | 15.18 |
|
| Net interest margin | 3.92 |
| | 3.77 |
|
|
| | | | |
“Excellent core earnings, led by strong loan growth in the first quarter, were partially offset by the charge-off of a single large credit. Unfortunately, the bottom line doesn’t reflect the many positive aspects of Heartland’s performance this quarter.”
Lynn B. Fuller, chairman, president and chief executive officer, Heartland Financial USA, Inc. |
Dubuque, Iowa, Monday, April 28, 2014-Heartland Financial USA, Inc. (NASDAQ: HTLF) today reported net income available to common stockholders of $6.7 million, or $0.36 per diluted common share, for the quarter ended March 31, 2014, compared to $12.1 million, or $0.70 per diluted common share, for the first quarter of 2013. Return on average common equity was 7.41% and return on average assets was 0.47% for the first quarter of 2014, compared to 15.18% and 1.00%, respectively, for the same quarter in 2013.
Net income for the first quarter of 2014 was $5.7 million lower than the first quarter of 2013, primarily as a result of a $5.7 million increase in provision for loan and lease losses. This increase was primarily the result of a charge-off on one significant credit during the first quarter of 2014. Positively affecting net income for the quarter was a $9.9 million increase in net interest income, largely due to strong loan growth, the acquisition of Morrill & Janes Bank and Trust Company completed during the last quarter of 2013 and a lower cost of funds. This improvement was offset by a $6.8 million decrease in gains on sale of loans held for sale, resulting from weaker mortgage loan volumes, and a $6.2 million increase in noninterest expenses, primarily due to the added expenses of Morrill & Janes Bank and Trust Company.
Commenting on Heartland's first quarter results, Lynn B. Fuller, Heartland's chairman, president and chief executive officer said, “Excellent core earnings, led by strong loan growth in the first quarter, were partially offset by the charge-off of a single large credit. Unfortunately, the bottom line doesn’t reflect the many positive aspects of Heartland’s performance this quarter.”
Net Interest Margin Increases in Both Percentage and Dollars
Net interest margin, expressed as a percentage of average earning assets, was 3.92% during the first quarter of 2014 compared to 3.82% during the fourth quarter of 2013 and 3.77% during the first quarter of 2013.
Fuller said, “We are pleased to see net interest margin increase to 3.92 percent in the first quarter from 3.82 percent in the previous quarter. This is the best we’ve seen in the last five quarters. Margin benefited from loan growth, better asset mix, improved yield on securities and a continued decrease in deposit costs.”
On a tax-equivalent basis, interest income in the first quarter of 2014 was $59.6 million compared to $50.0 million in the first quarter of 2013. The increase in interest income in the first quarter of 2014, as compared to the first quarter of 2013, was due to an increase in average earning assets, as the interest rate earned on those assets remained relatively consistent. The average interest rate earned on total earning assets was 4.58% during the first quarter of 2014 compared to 4.60% during the first quarter of 2013. Average earning assets increased $874.2 million or 20% during the first quarter of 2014 compared to the first quarter of 2013, with approximately $840.0 million attributable to the two acquisitions completed during the fourth quarter of 2013.
Interest expense for the first quarter of 2014 was $8.7 million, a decrease of $359,000 or 4% from $9.0 million in the first quarter of 2013. Even though average interest bearing liabilities increased $677.1 million or 20% for the quarter ended March 31, 2014, as compared to the same quarter in 2013, the average interest rate paid on Heartland's interest bearing deposits and borrowings declined 21 basis points decreasing from 1.07% in the first quarter of 2013 to 0.86% in the first quarter of 2014. Contributing to this improvement in interest expense was a continued favorable change in the mix of deposits. Average savings balances, the lowest cost interest-bearing deposits, as a percentage of total average interest bearing deposits was 74% during the first quarter of 2014, compared to 69% for the first quarter of 2013. Additionally, the average interest rate paid on savings deposits was 0.33% during the first quarter of 2014 compared to 0.34% during the first quarter of 2013 and the average interest rate paid on time deposits was 1.21% during the first quarter of 2014 compared to 1.61% during the first quarter of 2013.
Net interest income on a tax-equivalent basis totaled $51.0 million during the first quarter of 2014, an increase of $10.1 million or 25% from the $40.9 million recorded during the first quarter of 2013.
Decrease in Noninterest Income; Increase in Noninterest Expenses
Noninterest income was $18.7 million during the first quarter of 2014 compared to $26.0 million during the first quarter of 2013, a decrease of $7.3 million or 28%, primarily due to a $6.8 million decrease in gains on sale of loans held for sale and a $3.0 million decrease in securities and trading account securities gains. These decreases are related to the flat or moderately increasing interest rate environment in the first quarter of 2014, as opposed to an extremely low interest rate environment in the first quarter of 2013 that encouraged mortgage loan refinancings and
rebalancing of the securities portfolio. The volume of mortgage loans sold totaled $150.0 million during the first quarter of 2014, a 65% decrease from the $424.9 million sold during the first quarter of 2013. The negative impact of these decreases was partially offset by higher service charges and fees, loan servicing income, trust fees and brokerage and insurance commissions.
Fuller commented, “In the first quarter, we saw signs of improvement in mortgage loan application volumes, though not at levels experienced early last year. We are expecting newly opened loan origination offices in the Pacific Northwest, Kansas City and Omaha to make a meaningful contribution to overall production volumes in the very near future.”
For the first quarter of 2014, noninterest expense totaled $52.4 million, an increase of $6.2 million or 13% from the same quarter of 2013, largely due to $4.7 million of expenses related to the two acquisitions completed during the last quarter of 2013. Excluding the effect of the acquisitions, noninterest expense increased $1.5 million or 3% during the first quarter of 2014 in comparison to the first quarter of 2013.
Heartland's effective tax rate was 19.82% for the first quarter of 2014 compared to 29.39% for the first quarter of 2013. Federal low-income housing tax credits included in Heartland's effective tax rate totaled $200,000 during both the first quarter of 2014 and 2013. 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 51.28% during the first quarter of 2014 compared to 23.81% during the first quarter of 2013. The tax-equivalent adjustment for this tax-exempt interest income was $2.4 million during the first quarter of 2014 compared to $2.3 million during the first quarter of 2013.
Increase in Loans; Slight Decrease in Deposits
Total assets were $5.75 billion at March 31, 2014, a decrease of $176.6 million since December 31, 2013. Securities represented 29% of total assets at March 31, 2014, compared to 32% at year-end 2013.
Total loans and leases held to maturity were $3.58 billion at March 31, 2014, compared to $3.50 billion at year-end 2013, an increase of $80.8 million or 9% annualized. Commercial and commercial real estate loans, which totaled $2.55 billion at March 31, 2014, increased $67.7 million or 11% annualized since year-end 2013. Residential mortgage loans, which totaled $365.2 million at March 31, 2014, increased $15.8 million or 18% annualized since year-end 2013. Agricultural and agricultural real estate loans, which totaled $370.3 million at March 31, 2014, decreased $6.4 million or 7% annualized since year-end 2013. Consumer loans, which totaled $298.0 million at March 31, 2014, increased $3.8 million or 5% annualized since year-end 2013.
“Heartland experienced solid broad-based loan growth of $81 million during the quarter, growing at an annualized rate of 9 percent. All of the loan growth was organic, with commercial representing the largest portion,” added Fuller.
Total deposits remained relatively flat at $4.66 billion as of March 31, 2014, compared to $4.67 billion at year-end 2013. Demand deposits totaled $1.20 billion at March 31, 2014, a decrease of $43.1 million or 14% annualized since year-end 2013. Also experiencing a decrease during the quarter, certificates of deposit totaled $885.7 million at March 31, 2014, a decrease of $6.9 million or 3% annualized. Savings deposits experienced an increase during the quarter, growing to $2.58 billion at March 31, 2014, an increase of $46.9 million or 7% annualized. The composition of Heartland's deposits continued its positive trend as no-cost demand deposits as a percentage of total deposits was 26% at March 31, 2014, while higher-cost certificates of deposit as a percentage of total deposits was 19% at March 31, 2014.
Fuller said, “Deposit growth slowed, dropping slightly from the previous quarter. We see that primarily as a seasonal effect, which has been experienced in previous years.”
Increase in Provision for Loan Losses; Decrease in Nonperforming Loans
The allowance for loan and lease losses at March 31, 2014, was 1.08% of loans and leases and 120.81% of nonperforming loans compared to 1.19% of loans and leases and 98.27% of nonperforming loans at December 31, 2013. The provision for loan losses was $6.3 million for the first quarter of 2014 compared to $637,000 for the first quarter of 2013. The first quarter 2014 provision included approximately $4.5 million to compensate for a charge off on a single large credit.
Net charge-offs on loans during the first quarter of 2014 were $9.4 million, up $7.7 million as compared to the prior quarter and up $7.6 million as compared to the first quarter of 2013. The increase was primarily due to a $6.8 million credit which was fully charged off during the first quarter of 2014.
Nonperforming loans, exclusive of those covered under the loss sharing agreements, were $31.9 million or 0.89% of total loans and leases at March 31, 2014, compared to $42.4 million or 1.21% of total loans and leases at December 31, 2013. Approximately 54%, or $17.3 million, of Heartland's nonperforming loans have individual loan balances exceeding $1.0 million, the largest of which is $4.5 million. These nonperforming loans, to an aggregate of 6 borrowers, were evenly distributed between Heartland's Western and Midwestern markets and are spread over five different industry classifications.
Other real estate owned was $28.1 million at March 31, 2014, compared to $29.9 million at December 31, 2013. Liquidation strategies have been identified for all the assets held in other real estate owned. Management continues to market these properties through an orderly liquidation process instead of a quick liquidation process in order to avoid discounts greater than the projected carrying costs.
“We are encouraged by the steady improvement in our level of nonperforming assets. For the first quarter of 2014, we experienced a steep decline in nonperforming assets of over $12 million, falling below 1 percent of total loans to the lowest level we’ve seen in nearly seven years,” Fuller concluded.
Conference Call Details
Heartland will host a conference call for investors at 5:00 p.m. EDT today. To participate, dial 877-407-0781 at least five minutes before start time. To listen to the live webcast, log on to www.htlf.com at least 15 minutes before start time. If you are unable to participate on the call, a replay will be available until April 27, 2015, by logging on to www.htlf.com.
About Heartland Financial USA, Inc.
Heartland Financial USA, Inc. is a $5.7 billion diversified financial services company providing banking, mortgage, wealth management, investment, insurance and consumer finance services to individuals and businesses. Heartland currently has 78 banking locations in 58 communities in Iowa, Illinois, Wisconsin, New Mexico, Arizona, Montana, Colorado, Minnesota, Kansas and Missouri and loan production offices in California, Nevada, Wyoming, Idaho, North Dakota, Oregon, Washington and Nebraska. 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 potential impact of acquisitions, (viii) the loss of key executives or employees; (ix) changes in consumer spending; (x) unexpected outcomes of existing or new litigation involving the Company; and (xii) 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, |
| | 2014 |
| 2013 |
| Interest Income | |
|
|
|
| Interest and fees on loans and leases | | $ | 46,384 |
|
| $ | 39,827 |
|
| Interest on securities: | |
|
|
|
| Taxable | | 7,761 |
|
| 4,659 |
|
| Nontaxable | | 3,122 |
|
| 3,198 |
|
| Interest on federal funds sold | | — |
|
| — |
|
| Interest on deposits in other financial institutions | | 7 |
|
| 4 |
|
| Total Interest Income | | 57,274 |
|
| 47,688 |
|
| Interest Expense | |
|
|
|
| Interest on deposits | | 4,778 |
|
| 5,076 |
|
| Interest on short-term borrowings | | 226 |
|
| 148 |
|
| Interest on other borrowings | | 3,658 |
|
| 3,797 |
|
| Total Interest Expense | | 8,662 |
|
| 9,021 |
|
| Net Interest Income | | 48,612 |
|
| 38,667 |
|
| Provision for loan and lease losses | | 6,331 |
|
| 637 |
|
| Net Interest Income After Provision for Loan and Lease Losses | | 42,281 |
|
| 38,030 |
|
| Noninterest Income | |
|
|
|
| Service charges and fees | | 4,896 |
|
| 4,008 |
|
| Loan servicing income | | 1,511 |
|
| 126 |
|
| Trust fees | | 3,210 |
|
| 2,904 |
|
| Brokerage and insurance commissions | | 1,123 |
|
| 951 |
|
| Securities gains, net | | 781 |
|
| 3,427 |
|
| Gain (loss) on trading account securities | | (38 | ) |
| 314 |
|
| Gains on sale of loans held for sale | | 6,379 |
|
| 13,157 |
|
| Loss on sales/valuations of repossessed assets, net |
| (123 | ) |
| (502 | ) |
| Valuation adjustment on mortgage servicing rights | | — |
|
| 496 |
|
| Income on bank owned life insurance | | 363 |
|
| 405 |
|
| Other noninterest income | | 625 |
|
| 680 |
|
| Total Noninterest Income | | 18,727 |
|
| 25,966 |
|
| Noninterest Expense | |
|
|
|
| Salaries and employee benefits | | 32,319 |
|
| 29,740 |
|
| Occupancy | | 4,050 |
|
| 3,185 |
|
| Furniture and equipment | | 1,890 |
|
| 2,051 |
|
| Professional fees | | 4,526 |
|
| 3,543 |
|
| FDIC insurance assessments | | 980 |
|
| 902 |
|
| Advertising | | 1,188 |
|
| 1,228 |
|
| Intangible assets amortization | | 624 |
|
| 200 |
|
| Other real estate and loan collection expenses | | 1,052 |
|
| 838 |
|
| Other noninterest expenses | | 5,786 |
|
| 4,558 |
|
| Total Noninterest Expense | | 52,415 |
|
| 46,245 |
|
| Income Before Income Taxes | | 8,593 |
|
| 17,751 |
|
| Income taxes | | 1,703 |
|
| 5,199 |
|
| Net Income | | 6,890 |
|
| 12,552 |
|
| Net income attributable to noncontrolling interest, net of tax | | — |
|
| (64 | ) |
| Net Income Attributable to Heartland | | 6,890 |
|
| 12,488 |
|
| Preferred dividends and discount | | (204 | ) |
| (408 | ) |
| Net Income Available to Common Stockholders | | $ | 6,686 |
|
| $ | 12,080 |
|
| Earnings per common share-diluted | | $ | 0.36 |
|
| $ | 0.70 |
|
| Weighted average shares outstanding-diluted | | 18,724,936 |
|
| 17,187,180 |
|
|
| | | | | | | | | | | | | | | | | | | |
| HEARTLAND FINANCIAL USA, INC. |
| CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
| DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA |
| For the Quarter Ended |
| 3/31/2014 |
| 12/31/2013 |
| 9/30/2013 |
| 6/30/2013 |
| 3/31/2013 |
| Interest Income |
|
|
|
|
|
|
|
|
|
| Interest and fees on loans and leases | $ | 46,384 |
|
| $ | 44,995 |
|
| $ | 40,154 |
|
| $ | 39,726 |
|
| $ | 39,827 |
|
| Interest on securities: |
|
|
|
|
|
|
|
|
|
| Taxable | 7,761 |
|
| 7,327 |
|
| 4,803 |
|
| 4,712 |
|
| 4,659 |
|
| Nontaxable | 3,122 |
|
| 3,294 |
|
| 3,443 |
|
| 3,360 |
|
| 3,198 |
|
| Interest on federal funds sold | — |
|
| 1 |
|
| — |
|
| — |
|
| — |
|
| Interest on deposits in other financial institutions | 7 |
|
| 3 |
|
| 3 |
|
| 2 |
|
| 4 |
|
| Total Interest Income | 57,274 |
|
| 55,620 |
|
| 48,403 |
|
| 47,800 |
|
| 47,688 |
|
| Interest Expense |
|
|
|
|
|
|
|
|
|
| Interest on deposits | 4,778 |
|
| 5,057 |
|
| 4,769 |
|
| 5,066 |
|
| 5,076 |
|
| Interest on short-term borrowings | 226 |
|
| 421 |
|
| 131 |
|
| 108 |
|
| 148 |
|
| Interest on other borrowings | 3,658 |
|
| 3,785 |
|
| 3,623 |
|
| 3,702 |
|
| 3,797 |
|
| Total Interest Expense | 8,662 |
|
| 9,263 |
|
| 8,523 |
|
| 8,876 |
|
| 9,021 |
|
| Net Interest Income | 48,612 |
|
| 46,357 |
|
| 39,880 |
|
| 38,924 |
|
| 38,667 |
|
| Provision for loan and lease losses | 6,331 |
|
| 2,049 |
|
| 5,149 |
|
| 1,862 |
|
| 637 |
|
| Net Interest Income After Provision for Loan and Lease Losses | 42,281 |
|
| 44,308 |
|
| 34,731 |
|
| 37,062 |
|
| 38,030 |
|
| Noninterest Income | | | | | | | | | |
| Service charges and fees | 4,896 |
|
| 4,885 |
|
| 4,487 |
|
| 4,280 |
|
| 4,008 |
|
| Loan servicing income | 1,511 |
|
| 783 |
|
| 598 |
|
| 141 |
|
| 126 |
|
| Trust fees | 3,210 |
|
| 2,944 |
|
| 2,918 |
|
| 2,942 |
|
| 2,904 |
|
| Brokerage and insurance commissions | 1,123 |
|
| 1,246 |
|
| 1,277 |
|
| 1,087 |
|
| 951 |
|
| Securities gains, net | 781 |
|
| 509 |
|
| 1,118 |
|
| 2,067 |
|
| 3,427 |
|
| Gain (loss) on trading account securities | (38 | ) |
| 582 |
|
| 263 |
|
| 262 |
|
| 314 |
|
| Gains on sale of loans held for sale | 6,379 |
|
| 5,353 |
|
| 8,637 |
|
| 13,048 |
|
| 13,157 |
|
| Loss on sales/valuations of repossessed assets, net | (123 | ) |
| (359 | ) |
| (339 | ) |
| (1,599 | ) |
| (502 | ) |
| Valuation adjustment on mortgage servicing rights | — |
|
| — |
|
| — |
|
| — |
|
| 496 |
|
| Income on bank owned life insurance | 363 |
|
| 426 |
|
| 409 |
|
| 315 |
|
| 405 |
|
| Other noninterest income | 625 |
|
| 846 |
|
| 1,011 |
|
| 716 |
|
| 680 |
|
| Total Noninterest Income | 18,727 |
|
| 17,215 |
|
| 20,379 |
|
| 23,259 |
|
| 25,966 |
|
| Noninterest Expense | | | | | | | | | |
| Salaries and employee benefits | 32,319 |
|
| 30,121 |
|
| 28,847 |
|
| 29,516 |
|
| 29,740 |
|
| Occupancy | 4,050 |
|
| 3,663 |
|
| 3,387 |
|
| 3,224 |
|
| 3,185 |
|
| Furniture and equipment | 1,890 |
|
| 2,007 |
|
| 1,917 |
|
| 2,065 |
|
| 2,051 |
|
| Professional fees | 4,526 |
|
| 5,270 |
|
| 4,486 |
|
| 4,233 |
|
| 3,543 |
|
| FDIC insurance assessments | 980 |
|
| 1,036 |
|
| 745 |
|
| 861 |
|
| 902 |
|
| Advertising | 1,188 |
|
| 1,458 |
|
| 1,360 |
|
| 1,248 |
|
| 1,228 |
|
| Intangible assets amortization | 624 |
|
| 469 |
|
| 196 |
|
| 198 |
|
| 200 |
|
| Other real estate and loan collection expenses | 1,052 |
|
| 1,999 |
|
| 730 |
|
| 878 |
|
| 838 |
|
| Other noninterest expenses | 5,786 |
|
| 7,519 |
|
| 5,140 |
|
| 4,944 |
|
| 4,558 |
|
| Total Noninterest Expense | 52,415 |
|
| 53,542 |
|
| 46,808 |
|
| 47,167 |
|
| 46,245 |
|
| Income Before Income Taxes | 8,593 |
|
| 7,981 |
|
| 8,302 |
|
| 13,154 |
|
| 17,751 |
|
| Income taxes | 1,703 |
|
| 46 |
|
| 1,492 |
|
| 3,598 |
|
| 5,199 |
|
| Net Income | 6,890 |
|
| 7,935 |
|
| 6,810 |
|
| 9,556 |
|
| 12,552 |
|
| Net income attributable to noncontrolling interest, net of tax | — |
|
| — |
|
| — |
|
| — |
|
| (64 | ) |
| Net Income Attributable to Heartland | 6,890 |
|
| 7,935 |
|
| 6,810 |
|
| 9,556 |
|
| 12,488 |
|
| Preferred dividends and discount | (204 | ) |
| (204 | ) |
| (276 | ) |
| (205 | ) |
| (408 | ) |
| Net Income Available to Common Stockholders | $ | 6,686 |
|
| $ | 7,731 |
|
| $ | 6,534 |
|
| $ | 9,351 |
|
| $ | 12,080 |
|
| Earnings per common share-diluted | $ | 0.36 |
|
| $ | 0.42 |
|
| $ | 0.38 |
|
| $ | 0.54 |
|
| $ | 0.70 |
|
| Weighted average shares outstanding-diluted | 18,724,936 |
|
| 18,360,470 |
|
| 17,221,154 |
|
| 17,203,924 |
|
| 17,187,180 |
|
|
| | | | | | | | | | | | | | | | | | | |
| HEARTLAND FINANCIAL USA, INC. |
| CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
| DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA |
| As Of |
| 3/31/2014 |
| 12/31/2013 |
| 9/30/2013 |
| 6/30/2013 |
| 3/31/2013 |
| Assets |
|
|
|
|
|
|
|
|
|
| Cash and due from banks | $ | 84,744 |
|
| $ | 118,441 |
|
| $ | 160,225 |
|
| $ | 105,127 |
|
| $ | 68,450 |
|
| Federal funds sold and other short-term investments | 3,884 |
| | 6,829 |
| | 4,783 |
| | 6,970 |
| | 6,137 |
|
| Cash and cash equivalents | 88,628 |
| | 125,270 |
| | 165,008 |
| | 112,097 |
| | 74,587 |
|
| Time deposits in other financial institutions | 3,355 |
| | 3,355 |
| | 3,605 |
| | 3,605 |
| | 3,605 |
|
| Securities: | | | | | | | | | |
| Trading, at fair value | — |
| | 1,801 |
| | 1,219 |
| | 956 |
| | 694 |
|
| Available for sale, at fair value | 1,400,756 |
| | 1,633,902 |
| | 1,374,180 |
| | 1,507,026 |
| | 1,509,779 |
|
| Held to maturity, at cost | 257,927 |
| | 237,498 |
| | 53,841 |
| | 55,199 |
| | 55,456 |
|
| Other investments, at cost | 18,755 |
| | 21,843 |
| | 17,430 |
| | 15,392 |
| | 14,790 |
|
| Loans held for sale | 54,862 |
|
| 46,665 |
|
| 61,326 |
|
| 88,541 |
|
| 91,708 |
|
| Loans and leases: |
|
|
|
|
|
|
|
|
|
| Held to maturity | 3,577,776 |
|
| 3,496,952 |
|
| 2,901,706 |
|
| 2,832,377 |
|
| 2,789,893 |
|
| Loans covered by loss share agreements | 5,466 |
|
| 5,749 |
|
| 5,876 |
|
| 6,275 |
|
| 6,741 |
|
| Allowance for loan and lease losses | (38,573 | ) |
| (41,685 | ) |
| (41,311 | ) |
| (37,623 | ) |
| (37,528 | ) |
| Loans and leases, net | 3,544,669 |
|
| 3,461,016 |
|
| 2,866,271 |
|
| 2,801,029 |
|
| 2,759,106 |
|
| Premises, furniture and equipment, net | 135,054 |
|
| 135,714 |
|
| 129,029 |
|
| 129,938 |
|
| 128,411 |
|
| Other real estate, net | 28,083 |
| | 29,852 |
| | 33,018 |
| | 34,763 |
| | 36,704 |
|
| Goodwill | 35,583 |
|
| 35,583 |
|
| 30,627 |
|
| 30,627 |
|
| 30,627 |
|
| Other intangible assets, net | 32,690 |
|
| 32,959 |
|
| 23,435 |
|
| 22,056 |
|
| 20,266 |
|
| Cash surrender value on life insurance | 81,486 |
|
| 81,110 |
|
| 79,238 |
|
| 75,992 |
|
| 75,907 |
|
| FDIC indemnification asset | 190 |
|
| 249 |
|
| 795 |
|
| 282 |
|
| 528 |
|
| Other assets | 65,064 |
|
| 76,899 |
|
| 73,708 |
|
| 82,253 |
|
| 98,390 |
|
| Total Assets | $ | 5,747,102 |
|
| $ | 5,923,716 |
|
| $ | 4,912,730 |
|
| $ | 4,959,756 |
|
| $ | 4,900,558 |
|
| Liabilities and Equity |
|
|
|
|
|
|
|
|
|
| Liabilities |
|
|
|
|
|
|
|
|
|
| Deposits: |
|
|
|
|
|
|
|
|
|
| Demand | $ | 1,195,457 |
|
| $ | 1,238,581 |
|
| $ | 1,073,688 |
|
| $ | 1,029,784 |
|
| $ | 971,142 |
|
| Savings | 2,582,166 |
|
| 2,535,242 |
|
| 2,043,397 |
|
| 1,978,962 |
|
| 2,022,625 |
|
| Time | 885,741 |
|
| 892,676 |
|
| 807,913 |
|
| 832,388 |
|
| 848,689 |
|
| Total deposits | 4,663,364 |
|
| 4,666,499 |
|
| 3,924,998 |
|
| 3,841,134 |
|
| 3,842,456 |
|
| Short-term borrowings | 256,250 |
|
| 408,756 |
|
| 224,048 |
|
| 339,181 |
|
| 202,694 |
|
| Other borrowings | 334,916 |
|
| 350,109 |
|
| 322,538 |
|
| 336,332 |
|
| 336,577 |
|
| Accrued expenses and other liabilities | 35,237 |
|
| 58,892 |
|
| 44,543 |
|
| 47,974 |
|
| 104,857 |
|
| Total Liabilities | 5,289,767 |
|
| 5,484,256 |
|
| 4,516,127 |
|
| 4,564,621 |
|
| 4,486,584 |
|
| Stockholders' Equity |
|
|
|
|
|
|
|
|
|
| Preferred equity | 81,698 |
|
| 81,698 |
|
| 81,698 |
|
| 81,698 |
|
| 81,698 |
|
| Common stock | 18,455 |
| | 18,399 |
| | 16,953 |
| | 16,947 |
| | 16,867 |
|
| Capital surplus | 92,199 |
| | 91,632 |
| | 52,641 |
| | 52,710 |
| | 52,131 |
|
| Retained earnings | 269,908 |
| | 265,067 |
| | 259,172 |
| | 254,332 |
| | 246,675 |
|
| Accumulated other comprehensive income (loss) | (4,903 | ) | | (17,336 | ) | | (13,819 | ) | | (10,200 | ) | | 13,831 |
|
| Treasury stock at cost | (22 | ) | | — |
| | (42 | ) | | (352 | ) | | (26 | ) |
| Total Heartland Stockholders' Equity | 457,335 |
|
| 439,460 |
|
| 396,603 |
|
| 395,135 |
|
| 411,176 |
|
| Noncontrolling interest | — |
|
| — |
|
| — |
|
| — |
|
| 2,798 |
|
| Total Equity | 457,335 |
|
| 439,460 |
|
| 396,603 |
|
| 395,135 |
|
| 413,974 |
|
| Total Liabilities and Equity | $ | 5,747,102 |
|
| $ | 5,923,716 |
|
| $ | 4,912,730 |
|
| $ | 4,959,756 |
|
| $ | 4,900,558 |
|
|
| | | | | | | | | | | | | | | | | | | |
| HEARTLAND FINANCIAL USA, INC. |
| CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
| DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA |
| For the Quarter Ended |
| 3/31/2014 |
| 12/31/2013 |
| 9/30/2013 |
| 6/30/2013 |
| 3/31/2013 |
| Average Balances |
|
|
|
|
|
|
|
|
|
| Assets | $ | 5,770,350 |
|
| $ | 5,604,487 |
|
| $ | 4,901,972 |
|
| $ | 4,932,852 |
|
| $ | 4,890,023 |
|
| Loans and leases, net of unearned | 3,571,127 |
|
| 3,341,252 |
|
| 2,937,508 |
|
| 2,905,778 |
|
| 2,876,960 |
|
| Deposits | 4,633,192 |
|
| 4,512,170 |
|
| 3,861,624 |
|
| 3,871,945 |
|
| 3,801,125 |
|
| Earning assets | 5,278,331 |
|
| 5,061,822 |
|
| 4,396,140 |
|
| 4,461,923 |
|
| 4,404,119 |
|
| Interest bearing liabilities | 4,089,691 |
|
| 3,921,951 |
|
| 3,413,205 |
|
| 3,433,686 |
|
| 3,412,641 |
|
| Common stockholders' equity | 365,889 |
|
| 349,056 |
|
| 309,472 |
|
| 332,386 |
|
| 322,820 |
|
| Total stockholders' equity | 447,587 |
|
| 430,754 |
|
| 391,170 |
|
| 414,976 |
|
| 407,282 |
|
| Tangible common stockholders' equity | 318,898 |
|
| 308,802 |
|
| 276,511 |
|
| 299,225 |
|
| 289,453 |
|
| | | | | | | | | | |
| Earnings Performance Ratios |
|
|
|
|
|
|
|
|
|
| Annualized return on average assets | 0.47 | % |
| 0.55 | % |
| 0.53 | % |
| 0.76 | % |
| 1.00 | % |
| Annualized return on average common equity | 7.41 | % |
| 8.79 | % |
| 8.38 | % |
| 11.28 | % |
| 15.18 | % |
| Annualized return on average common tangible equity | 8.50 | % |
| 9.93 | % |
| 9.38 | % |
| 12.53 | % |
| 16.93 | % |
Annualized net interest margin (1) | 3.92 | % |
| 3.82 | % |
| 3.81 | % |
| 3.71 | % |
| 3.77 | % |
Efficiency ratio, fully taxable equivalent (2) | 76.04 | % |
| 81.32 | % |
| 76.08 | % |
| 75.46 | % |
| 72.85 | % |
| |
| (1) Computed on a tax equivalent basis using an effective tax rate of 35% |
| (2) Efficiency ratio, fully taxable equivalent, is noninterest expense, divided by the sum of taxable equivalent net interest income plus noninterest income, excluding investment securities gains (losses) and loss on sales/valuations of repossessed assets, net. This efficiency ratio is presented on a taxable equivalent basis, which adjusts net interest income for the tax-favored status of certain loans and investment securities. Management believes this measure to be the preferred industry measurement of net interest income as it enhances the comparability of net interest income arising from taxable and tax-exempt sources, and it excludes certain specific revenue items (such as investment securities gains (losses), net, and loss on sales/valuations of repossessed assets, net). This is a non-GAAP measure. |
|
| | | | | | | | | | | | | | | | | | | |
| HEARTLAND FINANCIAL USA, INC. |
| CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
| DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA |
| As of and for the Quarter Ended |
| 3/31/2014 |
| 12/31/2013 |
| 9/30/2013 |
| 6/30/2013 |
| 3/31/2013 |
| Common Share Data |
|
|
|
|
|
|
|
|
|
| Book value per common share | $ | 20.36 |
|
| $ | 19.44 |
|
| $ | 18.58 |
|
| $ | 18.51 |
|
| $ | 19.54 |
|
Tangible book value per common share (1) | $ | 17.86 |
|
| $ | 16.90 |
|
| $ | 16.64 |
|
| $ | 16.56 |
|
| $ | 17.56 |
|
| ASC 320 effect on book value per common share | $ | (0.16 | ) |
| $ | (0.82 | ) |
| $ | (0.66 | ) |
| $ | (0.44 | ) |
| $ | 1.03 |
|
| Common shares outstanding, net of treasury stock | 18,454,048 |
|
| 18,399,156 |
|
| 16,951,053 |
|
| 16,934,161 |
|
| 16,865,919 |
|
Tangible capital ratio (2) | 5.78 | % |
| 5.29 | % |
| 5.78 | % |
| 5.69 | % |
| 6.09 | % |
| | | | | | | | | | |
| Loan and Lease Data |
|
|
|
|
|
|
|
|
|
| Loans held to maturity: |
|
|
|
|
|
|
|
|
|
| Commercial and commercial real estate | $ | 2,547,625 |
|
| $ | 2,479,880 |
|
| $ | 2,042,995 |
|
| $ | 2,004,883 |
|
| $ | 1,990,818 |
|
| Residential mortgage | 365,162 |
|
| 349,349 |
|
| 269,501 |
|
| 248,604 |
|
| 240,453 |
|
| Agricultural and agricultural real estate | 370,348 |
|
| 376,735 |
|
| 324,339 |
|
| 327,490 |
|
| 314,606 |
|
| Consumer | 297,978 |
|
| 294,145 |
|
| 268,112 |
|
| 254,825 |
|
| 246,996 |
|
| Unearned discount and deferred loan fees | (3,337 | ) |
| (3,157 | ) |
| (3,241 | ) |
| (3,425 | ) |
| (2,980 | ) |
| Total loans and leases held to maturity | $ | 3,577,776 |
|
| $ | 3,496,952 |
|
| $ | 2,901,706 |
|
| $ | 2,832,377 |
|
| $ | 2,789,893 |
|
| | | | | | | | | | |
| Loans covered under loss share agreements: |
|
|
|
|
|
|
|
|
|
| Commercial and commercial real estate | $ | 2,292 |
|
| $ | 2,314 |
|
| $ | 2,402 |
|
| $ | 2,519 |
|
| $ | 2,738 |
|
| Residential mortgage | 2,062 |
|
| 2,280 |
|
| 2,433 |
|
| 2,493 |
|
| 2,722 |
|
| Agricultural and agricultural real estate | 502 |
|
| 543 |
|
| 446 |
|
| 441 |
|
| 453 |
|
| Consumer | 610 |
|
| 612 |
|
| 595 |
|
| 822 |
|
| 828 |
|
| Total loans and leases covered under loss share agreements | $ | 5,466 |
|
| $ | 5,749 |
|
| $ | 5,876 |
|
| $ | 6,275 |
|
| $ | 6,741 |
|
|
|
|
|
|
|
|
|
|
|
| Other Selected Trend Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Effective tax rate | 19.82 | % |
| 0.57 | % |
| 17.98 | % |
| 27.35 | % |
| 29.39 | % |
| Average full time equivalent employees | 1,678 |
|
| 1,662 |
|
| 1,616 |
|
| 1,542 |
|
| 1,522 |
|
| Trust assets under management | $ | 1,736,308 |
|
| $ | 1,621,970 |
|
| $ | 1,535,092 |
|
| $ | 1,577,903 |
|
| $ | 1,462,815 |
|
| Total Residential Mortgage Loan Applications | $ | 316,829 |
|
| $ | 293,115 |
|
| $ | 416,128 |
|
| $ | 653,461 |
|
| $ | 556,890 |
|
| Residential Mortgage Loans Originated | $ | 175,249 |
|
| $ | 232,150 |
|
| $ | 349,012 |
|
| $ | 470,813 |
|
| $ | 432,974 |
|
| Residential Mortgage Loans Sold | $ | 149,993 |
|
| $ | 214,334 |
|
| $ | 336,780 |
|
| $ | 445,452 |
|
| $ | 424,931 |
|
| Residential Mortgage Loan Servicing Portfolio | $ | 3,107,589 |
|
| $ | 3,045,893 |
|
| $ | 2,887,667 |
|
| $ | 2,679,283 |
|
| $ | 2,428,067 |
|
| | | | | | | | | | |
| (1) Total common stockholders' equity less goodwill and intangible assets (excluding mortgage servicing rights) divided by common shares outstanding, net of treasury. This is a non-GAAP financial measure but has been included as it is considered to be a critical metric with which to analyze and evaluate financial condition and capital strength. |
| (2) Total common stockholders' equity less goodwill and intangible assets (excluding mortgage servicing rights) divided by total assets less intangible assets (excluding mortgage servicing rights). This is a non-GAAP financial measure but has been included as it is considered to be a critical metric with which to analyze and evaluate financial condition and capital strength. |
|
| | | | | | | | | | | | | | | | | | | |
| HEARTLAND FINANCIAL USA, INC. |
| CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
| DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA |
| | As of and for the Quarter Ended |
| | 3/31/2014 |
| 12/31/2013 |
| 9/30/2013 |
| 6/30/2013 |
| 3/31/2013 |
| Allowance for Loan and Lease Losses |
|
|
|
|
|
|
|
|
|
| Balance, beginning of period | $ | 41,685 |
|
| $ | 41,311 |
|
| $ | 37,623 |
|
| $ | 37,528 |
|
| $ | 38,715 |
|
| Provision for loan and lease losses | 6,331 |
|
| 2,049 |
|
| 5,149 |
|
| 1,862 |
|
| 637 |
|
| Charge-offs on loans not covered by loss share agreements | (10,617 | ) |
| (3,197 | ) |
| (2,454 | ) |
| (2,742 | ) |
| (3,041 | ) |
| Charge-offs on loans covered by loss share agreements | (41 | ) |
| — |
|
| (59 | ) |
| (31 | ) |
| (23 | ) |
| Recoveries | 1,215 |
|
| 1,522 |
|
| 1,052 |
|
| 1,006 |
|
| 1,240 |
|
| Balance, end of period | $ | 38,573 |
|
| $ | 41,685 |
|
| $ | 41,311 |
|
| $ | 37,623 |
|
| $ | 37,528 |
|
| | | | | | | | | | |
| Asset Quality |
|
|
|
|
|
|
|
|
|
| Not covered under loss share agreements: |
|
|
|
|
|
|
|
|
|
| Nonaccrual loans | $ | 31,928 |
|
| $ | 42,394 |
|
| $ | 47,088 |
|
| $ | 41,003 |
|
| $ | 32,356 |
|
| Loans and leases past due ninety days or more as to interest or principal payments | — |
|
| 24 |
|
| — |
|
| 6 |
|
| 454 |
|
| Other real estate owned | 28,033 |
|
| 29,794 |
|
| 32,753 |
|
| 33,709 |
|
| 35,697 |
|
| Other repossessed assets | 397 |
|
| 397 |
|
| 469 |
|
| 603 |
|
| 1,059 |
|
| Total nonperforming assets not covered under loss share agreements | $ | 60,358 |
|
| $ | 72,609 |
|
| $ | 80,310 |
|
| $ | 75,321 |
|
| $ | 69,566 |
|
| | | | | | | | | | |
| Covered under loss share agreements: |
|
|
|
|
|
|
|
|
|
| Nonaccrual loans | $ | 820 |
|
| $ | 783 |
|
| $ | 805 |
|
| $ | 571 |
|
| $ | 636 |
|
| Other real estate owned | 50 |
|
| 58 |
|
| 265 |
|
| 1,054 |
|
| 1,007 |
|
| Other repossessed assets | — |
| | — |
| | 4 |
| | — |
| | — |
|
| Total nonperforming assets covered under loss share agreements | $ | 870 |
|
| $ | 841 |
|
| $ | 1,074 |
|
| $ | 1,625 |
|
| $ | 1,643 |
|
| | | | | | | | | | |
| Performing troubled debt restructured loans | $ | 12,548 |
|
| $ | 19,353 |
|
| $ | 19,371 |
|
| $ | 32,661 |
|
| $ | 24,473 |
|
| | | | | | | | | | |
| Nonperforming Assets Activity |
|
|
|
|
|
|
|
|
|
| Balance, beginning of period | $ | 73,450 |
|
| $ | 81,384 |
|
| $ | 76,946 |
|
| $ | 71,209 |
|
| $ | 80,779 |
|
| Net loan charge offs | (9,443 | ) |
| (1,675 | ) |
| (1,461 | ) |
| (1,767 | ) |
| (1,824 | ) |
| New nonperforming loans | 5,328 |
|
| 6,981 |
|
| 16,070 |
|
| 18,471 |
|
| 3,362 |
|
Reduction of nonperforming loans (1) | (3,303 | ) |
| (4,951 | ) |
| (5,653 | ) |
| (2,634 | ) |
| (7,177 | ) |
| OREO/Repossessed assets sales proceeds | (4,731 | ) |
| (6,907 | ) |
| (3,444 | ) |
| (5,953 | ) |
| (3,323 | ) |
| OREO/Repossessed assets writedowns, net | (80 | ) |
| (1,387 | ) |
| (1,048 | ) |
| (2,284 | ) |
| (692 | ) |
| Net activity at Citizens Finance Co. | 7 |
|
| 5 |
|
| (26 | ) |
| (96 | ) |
| 84 |
|
| Balance, end of period | $ | 61,228 |
|
| $ | 73,450 |
|
| $ | 81,384 |
|
| $ | 76,946 |
|
| $ | 71,209 |
|
| |
| Asset Quality Ratios Excluding Assets Covered Under Loss Share Agreements | | | | | | | | | |
| Ratio of nonperforming loans and leases to total loans and leases | 0.89 | % |
| 1.21 | % |
| 1.62 | % |
| 1.45 | % |
| 1.18 | % |
| Ratio of nonperforming assets to total assets | 1.06 | % |
| 1.23 | % |
| 1.63 | % |
| 1.52 | % |
| 1.42 | % |
| Annualized ratio of net loan charge-offs to average loans and leases | 1.07 | % |
| 0.20 | % |
| 0.20 | % |
| 0.24 | % |
| 0.26 | % |
| Allowance for loan and lease losses as a percent of loans and leases | 1.08 | % |
| 1.19 | % |
| 1.42 | % |
| 1.33 | % |
| 1.35 | % |
| Allowance for loan and lease losses as a percent of nonperforming loans and leases | 120.81 | % |
| 98.27 | % |
| 87.73 | % |
| 91.74 | % |
| 114.38 | % |
| Loans delinquent 30-89 days as a percent of total loans | 0.31 | % |
| 0.32 | % |
| 0.53 | % |
| 0.46 | % |
| 0.55 | % |
| | | | | | | | | | |
| (1) Includes principal reductions and transfers to performing status |
|
| | | | | | | | | | | | | | | | | | | | | |
| HEARTLAND FINANCIAL USA, INC. |
| CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
| DOLLARS IN THOUSANDS |
| For the Quarter Ended |
| March 31, 2014 |
| March 31, 2013 |
| Average |
|
|
|
|
| Average |
|
|
|
|
| Balance |
| Interest |
| Rate |
| Balance |
| Interest |
| Rate |
| Earning Assets |
|
|
|
|
|
|
|
|
|
|
|
| Securities: |
|
|
|
|
|
|
|
|
|
|
|
| Taxable | $ | 1,298,930 |
|
| $ | 7,761 |
|
| 2.42 | % |
| $ | 1,184,567 |
|
| $ | 4,659 |
|
| 1.60 | % |
Nontaxable(1) | 443,120 |
|
| 4,803 |
|
| 4.40 |
|
| 370,872 |
|
| 4,920 |
|
| 5.38 |
|
| Total securities | 1,742,050 |
|
| 12,564 |
|
| 2.92 |
|
| 1,555,439 |
|
| 9,579 |
|
| 2.50 |
|
| Interest bearing deposits | 6,417 |
|
| 7 |
|
| 0.44 |
|
| 8,985 |
|
| 4 |
|
| 0.18 |
|
| Federal funds sold | 809 |
|
| — |
|
| — |
|
| 1,634 |
|
| — |
|
| — |
|
| Loans and leases: |
|
|
|
|
|
|
|
|
|
|
|
Commercial and commercial real estate(1) | 2,500,341 |
|
| 30,311 |
|
| 4.92 |
|
| 1,982,456 |
|
| 25,560 |
|
| 5.23 |
|
| Residential mortgage | 400,194 |
|
| 4,352 |
|
| 4.41 |
|
| 333,742 |
|
| 3,439 |
|
| 4.18 |
|
Agricultural and agricultural real estate(1) | 374,188 |
|
| 4,738 |
|
| 5.14 |
|
| 315,176 |
|
| 4,364 |
|
| 5.62 |
|
| Consumer | 296,404 |
|
| 6,186 |
|
| 8.46 |
|
| 245,586 |
|
| 5,824 |
|
| 9.62 |
|
| Fees on loans |
|
| 1,489 |
|
| — |
|
|
|
| 1,194 |
|
| — |
|
| Less: allowance for loan and lease losses | (42,072 | ) |
| — |
|
| — |
|
| (38,899 | ) |
| — |
|
| — |
|
| Net loans and leases | 3,529,055 |
|
| 47,076 |
|
| 5.41 |
|
| 2,838,061 |
|
| 40,381 |
|
| 5.77 |
|
| Total earning assets | 5,278,331 |
|
| 59,647 |
|
| 4.58 | % |
| 4,404,119 |
|
| 49,964 |
|
| 4.60 | % |
| Nonearning Assets | 492,019 |
|
|
|
|
|
| 485,904 |
|
|
|
|
|
| Total Assets | $ | 5,770,350 |
|
|
|
|
|
| $ | 4,890,023 |
|
|
|
|
|
| Interest Bearing Liabilities |
|
|
|
|
|
|
|
|
|
|
|
| Savings | $ | 2,538,418 |
|
| $ | 2,062 |
|
| 0.33 | % |
| $ | 1,961,438 |
|
| $ | 1,633 |
|
| 0.34 | % |
| Time, $100,000 and over | 340,344 |
|
| 875 |
|
| 1.04 |
|
| 315,761 |
|
| 1,170 |
|
| 1.50 |
|
| Other time deposits | 566,998 |
|
| 1,841 |
|
| 1.32 |
|
| 550,633 |
|
| 2,273 |
|
| 1.67 |
|
| Short-term borrowings | 306,070 |
|
| 226 |
|
| 0.30 |
|
| 229,752 |
|
| 148 |
|
| 0.26 |
|
| Other borrowings | 337,861 |
|
| 3,658 |
|
| 4.39 |
|
| 355,057 |
|
| 3,797 |
|
| 4.34 |
|
| Total interest bearing liabilities | 4,089,691 |
|
| 8,662 |
|
| 0.86 | % |
| 3,412,641 |
|
| 9,021 |
|
| 1.07 | % |
| Noninterest Bearing Liabilities |
|
|
|
|
|
|
|
|
|
|
|
| Noninterest bearing deposits | 1,187,432 |
|
|
|
|
|
| 973,293 |
|
|
|
|
|
| Accrued interest and other liabilities | 45,640 |
|
|
|
|
|
| 96,807 |
|
|
|
|
|
| Total noninterest bearing liabilities | 1,233,072 |
|
|
|
|
|
| 1,070,100 |
|
|
|
|
|
| Stockholders' Equity | 447,587 |
|
|
|
|
|
| 407,282 |
|
|
|
|
|
| Total Liabilities and Stockholders' Equity | $ | 5,770,350 |
|
|
|
|
|
| $ | 4,890,023 |
|
|
|
|
|
Net interest income(1) |
|
| $ | 50,985 |
|
|
|
|
|
| $ | 40,943 |
|
|
|
Net interest spread(1) |
|
|
|
| 3.72 | % |
|
|
|
|
| 3.53 | % |
Net interest income to total earning assets(1) |
|
|
|
| 3.92 | % |
|
|
|
|
| 3.77 | % |
| Interest bearing liabilities to earning assets | 77.48 | % |
|
|
|
|
| 77.49 | % |
|
|
|
|
| | | | | | | | | | | | |
| (1) Computed on a tax equivalent basis 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 |
| | 3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | 3/31/2013 |
| Total Assets |
|
|
|
|
|
| Dubuque Bank and Trust Company | $ | 1,346,025 |
| $ | 1,540,049 |
| $ | 1,438,041 |
| $ | 1,512,215 |
| $ | 1,436,744 |
|
| New Mexico Bank & Trust | 1,020,381 |
| 1,032,441 |
| 999,555 |
| 1,029,360 |
| 1,010,607 |
|
| Morrill & Janes Bank and Trust Company | 859,998 |
| 890,984 |
| — |
| — |
| — |
|
| Wisconsin Bank & Trust | 631,501 |
| 643,430 |
| 635,606 |
| 643,727 |
| 651,277 |
|
| Riverside Community Bank | 490,147 |
| 443,114 |
| 460,224 |
| 450,915 |
| 422,352 |
|
| Arizona Bank & Trust | 472,141 |
| 450,320 |
| 415,174 |
| 393,829 |
| 404,518 |
|
| Rocky Mountain Bank | 456,201 |
| 467,443 |
| 464,221 |
| 448,855 |
| 457,389 |
|
| Galena State Bank & Trust Co. | 281,981 |
| 290,457 |
| 296,383 |
| 290,388 |
| 294,484 |
|
| Minnesota Bank & Trust | 157,965 |
| 170,517 |
| 166,324 |
| 164,714 |
| 127,044 |
|
| Summit Bank & Trust | 116,154 |
| 113,719 |
| 115,547 |
| 118,049 |
| 115,649 |
|
| Total Deposits |
|
|
|
|
|
| Dubuque Bank and Trust Company | $ | 1,066,711 |
| $ | 1,116,154 |
| $ | 1,118,225 |
| $ | 1,122,506 |
| $ | 1,123,323 |
|
| New Mexico Bank & Trust | 790,172 |
| 765,572 |
| 765,903 |
| 748,345 |
| 716,938 |
|
| Morrill & Janes Bank and Trust Company | 673,325 |
| 692,038 |
| — |
| — |
| — |
|
| Wisconsin Bank & Trust | 544,323 |
| 531,371 |
| 545,163 |
| 527,762 |
| 533,956 |
|
| Riverside Community Bank | 403,643 |
| 353,046 |
| 371,779 |
| 334,248 |
| 352,189 |
|
| Arizona Bank & Trust | 381,121 |
| 368,059 |
| 320,737 |
| 321,813 |
| 339,797 |
|
| Rocky Mountain Bank | 379,017 |
| 380,011 |
| 375,949 |
| 367,707 |
| 380,024 |
|
| Galena State Bank & Trust Co. | 244,682 |
| 244,505 |
| 252,691 |
| 245,324 |
| 235,000 |
|
| Minnesota Bank & Trust | 142,750 |
| 154,812 |
| 151,659 |
| 145,246 |
| 111,886 |
|
| Summit Bank & Trust | 104,598 |
| 101,447 |
| 102,855 |
| 102,891 |
| 100,617 |
|
| Net Income (Loss) |
|
|
|
|
|
| Dubuque Bank and Trust Company | $ | 2,381 |
| $ | 5,009 |
| $ | 2,737 |
| $ | 3,694 |
| $ | 2,872 |
|
| New Mexico Bank & Trust | 2,199 |
| 1,575 |
| 1,660 |
| 2,520 |
| 3,444 |
|
| Morrill & Janes Bank and Trust Company | 1,301 |
| 1,145 |
| — |
| — |
| — |
|
| Wisconsin Bank & Trust | 1,068 |
| 1,850 |
| 1,990 |
| 1,534 |
| 2,544 |
|
| Riverside Community Bank | 527 |
| 433 |
| 546 |
| 240 |
| 827 |
|
| Arizona Bank & Trust | 837 |
| 125 |
| 380 |
| 1,568 |
| 1,714 |
|
| Rocky Mountain Bank | 1,049 |
| 576 |
| 916 |
| 854 |
| 1,175 |
|
| Galena State Bank & Trust Co. | 802 |
| 403 |
| 324 |
| 981 |
| 1,270 |
|
| Minnesota Bank & Trust | 122 |
| (31 | ) | (124 | ) | 196 |
| 320 |
|
| Summit Bank & Trust | (434 | ) | 44 |
| (368 | ) | (242 | ) | (45 | ) |
| Return on Average Assets |
|
|
|
|
|
| Dubuque Bank and Trust Company | 0.67 | % | 1.36 | % | 0.74 | % | 1.00 | % | 0.81 | % |
| New Mexico Bank & Trust | 0.88 |
| 0.61 |
| 0.66 |
| 0.99 |
| 1.38 |
|
| Morrill & Janes Bank and Trust Company | 0.62 |
| 0.66 |
| — |
| — |
| — |
|
| Wisconsin Bank & Trust | 0.69 |
| 1.16 |
| 1.24 |
| 0.96 |
| 1.58 |
|
| Riverside Community Bank | 0.49 |
| 0.38 |
| 0.46 |
| 0.21 |
| 0.77 |
|
| Arizona Bank & Trust | 0.74 |
| 0.12 |
| 0.38 |
| 1.59 |
| 1.69 |
|
| Rocky Mountain Bank | 0.92 |
| 0.49 |
| 0.80 |
| 0.75 |
| 1.03 |
|
| Galena State Bank & Trust Co. | 1.15 |
| 0.54 |
| 0.43 |
| 1.35 |
| 1.82 |
|
| Minnesota Bank & Trust | 0.32 |
| (0.07 | ) | (0.32 | ) | 0.55 |
| 1.03 |
|
| Summit Bank & Trust | (1.57 | ) | 0.15 |
| (1.27 | ) | (0.85 | ) | (0.16 | ) |
| Net Interest Margin as a Percentage of Average Earning Assets |
|
|
|
|
|
| Dubuque Bank and Trust Company | 3.72 | % | 3.59 | % | 3.30 | % | 3.23 | % | 3.37 | % |
| New Mexico Bank & Trust | 3.80 |
| 3.63 |
| 3.58 |
| 3.53 |
| 3.56 |
|
| Morrill & Janes Bank and Trust Company | 3.17 |
| 2.97 |
| — |
| — |
| — |
|
| Wisconsin Bank & Trust | 4.41 |
| 4.39 |
| 4.43 |
| 4.25 |
| 4.34 |
|
| Riverside Community Bank | 3.45 |
| 3.17 |
| 2.82 |
| 2.89 |
| 2.80 |
|
| Arizona Bank & Trust | 4.37 |
| 4.35 |
| 4.57 |
| 4.29 |
| 4.25 |
|
| Rocky Mountain Bank | 4.21 |
| 4.22 |
| 4.15 |
| 3.96 |
| 3.82 |
|
| Galena State Bank & Trust Co. | 3.74 |
| 3.47 |
| 3.32 |
| 3.48 |
| 3.69 |
|
| Minnesota Bank & Trust | 3.79 |
| 3.64 |
| 3.50 |
| 3.30 |
| 3.68 |
|
| Summit Bank & Trust | 4.03 |
| 3.79 |
| 3.76 |
| 3.57 |
| 3.89 |
|
|
| | | | | | | | | | | | | | | | | | | |
| HEARTLAND FINANCIAL USA, INC. |
| SELECTED FINANCIAL DATA - SUBSIDIARY BANKS (Unaudited) |
| DOLLARS IN THOUSANDS |
| As of |
| 3/31/2014 |
| 12/31/2013 |
| 9/30/2013 |
| 6/30/2013 |
| 3/31/2013 |
| Total Portfolio Loans and Leases |
|
|
|
|
|
|
|
|
|
| Dubuque Bank and Trust Company | $ | 897,860 |
|
| $ | 915,377 |
|
| $ | 828,502 |
|
| $ | 828,088 |
|
| $ | 803,084 |
|
| New Mexico Bank & Trust | 556,928 |
|
| 529,808 |
|
| 508,452 |
|
| 501,373 |
|
| 490,691 |
|
| Morrill & Janes Bank and Trust Company | 400,243 |
| | 384,685 |
| | — |
| | — |
| | — |
|
| Wisconsin Bank & Trust | 465,969 |
|
| 459,594 |
|
| 444,174 |
|
| 442,184 |
|
| 445,869 |
|
| Riverside Community Bank | 227,920 |
| | 186,739 |
| | 181,024 |
| | 174,498 |
| | 167,776 |
|
| Arizona Bank & Trust | 343,298 |
| | 329,211 |
| | 278,616 |
| | 251,416 |
| | 249,642 |
|
| Rocky Mountain Bank | 317,513 |
| | 316,702 |
| | 301,224 |
| | 285,900 |
| | 272,385 |
|
| Galena State Bank & Trust Co. | 183,012 |
|
| 183,639 |
|
| 177,480 |
|
| 169,306 |
|
| 170,500 |
|
| Minnesota Bank & Trust | 98,818 |
| | 101,491 |
| | 94,182 |
| | 89,121 |
| | 89,876 |
|
| Summit Bank & Trust | 72,898 |
|
| 73,150 |
|
| 75,681 |
|
| 75,869 |
|
| 77,305 |
|
| Allowance For Loan and Lease Losses |
|
|
|
|
|
|
|
|
|
| Dubuque Bank and Trust Company | $ | 8,839 |
|
| $ | 10,303 |
|
| $ | 11,040 |
|
| $ | 8,858 |
|
| $ | 8,758 |
|
| New Mexico Bank & Trust | 6,388 |
|
| 7,202 |
|
| 7,007 |
|
| 6,619 |
|
| 6,381 |
|
| Morrill & Janes Bank and Trust Company | 1,137 |
| | 406 |
| | — |
| | — |
| | — |
|
| Wisconsin Bank & Trust | 4,281 |
|
| 4,850 |
|
| 4,554 |
|
| 4,420 |
|
| 4,248 |
|
| Riverside Community Bank | 2,835 |
| | 3,121 |
| | 3,012 |
| | 2,924 |
| | 3,174 |
|
| Arizona Bank & Trust | 3,913 |
| | 4,133 |
| | 3,841 |
| | 3,573 |
| | 4,065 |
|
| Rocky Mountain Bank | 3,965 |
| | 4,148 |
| | 4,451 |
| | 4,404 |
| | 4,009 |
|
| Galena State Bank & Trust Co. | 1,716 |
|
| 1,916 |
|
| 1,872 |
|
| 1,759 |
|
| 1,856 |
|
| Minnesota Bank & Trust | 1,021 |
| | 1,091 |
| | 1,068 |
| | 944 |
| | 920 |
|
| Summit Bank & Trust | 1,054 |
|
| 1,334 |
|
| 1,297 |
|
| 1,222 |
|
| 1,339 |
|
| Nonperforming Loans and Leases |
|
|
|
|
|
|
|
|
|
| Dubuque Bank and Trust Company | $ | 7,729 |
|
| $ | 15,641 |
|
| $ | 19,803 |
|
| $ | 9,612 |
|
| $ | 2,234 |
|
| New Mexico Bank & Trust | 5,195 |
|
| 6,880 |
|
| 7,406 |
|
| 8,606 |
|
| 8,228 |
|
| Morrill & Janes Bank and Trust Company | 129 |
| | 160 |
| | — |
| | — |
| | — |
|
| Wisconsin Bank & Trust | 4,904 |
|
| 6,165 |
|
| 6,825 |
|
| 7,921 |
|
| 3,875 |
|
| Riverside Community Bank | 5,213 |
| | 3,325 |
| | 4,120 |
| | 2,769 |
| | 3,118 |
|
| Arizona Bank & Trust | 3,200 |
| | 4,413 |
| | 1,862 |
| | 2,240 |
| | 3,378 |
|
| Rocky Mountain Bank | 3,271 |
| | 3,326 |
| | 4,076 |
| | 5,997 |
| | 6,130 |
|
| Galena State Bank & Trust Co. | 939 |
|
| 1,077 |
|
| 1,131 |
|
| 1,246 |
|
| 3,087 |
|
| Minnesota Bank & Trust | — |
| | — |
| | — |
| | 3 |
| | 4 |
|
| Summit Bank & Trust | 584 |
|
| 688 |
|
| 1,021 |
|
| 1,897 |
|
| 2,001 |
|
| Allowance As a Percent of Total Loans and Leases |
|
|
|
|
|
|
|
|
|
| Dubuque Bank and Trust Company | 0.98 | % |
| 1.13 | % |
| 1.33 | % |
| 1.07 | % |
| 1.09 | % |
| New Mexico Bank & Trust | 1.15 |
|
| 1.36 |
|
| 1.38 |
|
| 1.32 |
|
| 1.30 |
|
| Morrill & Janes Bank and Trust Company | 0.28 |
| | 0.11 |
| | — |
| | — |
| | — |
|
| Wisconsin Bank & Trust | 0.92 |
|
| 1.06 |
|
| 1.03 |
|
| 1.00 |
|
| 0.95 |
|
| Riverside Community Bank | 1.24 |
| | 1.67 |
| | 1.66 |
| | 1.68 |
| | 1.89 |
|
| Arizona Bank & Trust | 1.14 |
| | 1.26 |
| | 1.38 |
| | 1.42 |
| | 1.63 |
|
| Rocky Mountain Bank | 1.25 |
| | 1.31 |
| | 1.48 |
| | 1.54 |
| | 1.47 |
|
| Galena State Bank & Trust Co. | 0.94 |
|
| 1.04 |
|
| 1.05 |
|
| 1.04 |
|
| 1.09 |
|
| Minnesota Bank & Trust | 1.03 |
| | 1.07 |
| | 1.13 |
| | 1.06 |
| | 1.02 |
|
| Summit Bank & Trust | 1.45 |
|
| 1.82 |
|
| 1.71 |
|
| 1.61 |
|
| 1.73 |
|
