|
| |
| CONTACT: | FOR IMMEDIATE RELEASE |
| Bryan R. McKeag | April 27, 2015 |
| Executive Vice President | |
| Chief Financial Officer | |
| (563) 589-1994 | |
| bmckeag@htlf.com | |
HEARTLAND FINANCIAL USA, INC. REPORTS FIRST QUARTER 2015 RESULTS
Quarterly Highlights
|
| |
| § | Net income available to common stockholders of $15.5 million or $0.76 per diluted common share |
| § | Return on average common equity of 13.58% |
| § | Return on average tangible common equity of 15.67% |
| § | Net interest margin of 3.90% |
| § | Gains on sale of loans held for sale of $13.7 million, more than double the first quarter 2014 |
| § | Completed acquisition of Community Banc-Corp of Sheboygan, Inc. on January 16, 2015 |
| § | Completed merger of Galena State Bank & Trust Co. into Illinois Bank & Trust effective January 23, 2015 |
| § | Announced signing of merger agreement with Community Bancorporation of New Mexico, Inc. on April 16, 2015 |
|
| | | | | | | |
| | Quarter Ended March 31, |
| | 2015 | | 2014 |
| Net income (in millions) | $ | 15.7 |
| | $ | 6.9 |
|
| Net income available to common stockholders (in millions) | 15.5 |
| | 6.7 |
|
| Diluted earnings per common share | 0.76 |
| | 0.36 |
|
| | | | |
| Return on average assets | 0.97 | % | | 0.47 | % |
| Return on average common equity | 13.58 |
| | 7.41 |
|
| Return on average tangible common equity | 15.67 |
| | 8.50 |
|
| Net interest margin | 3.90 |
| | 3.92 |
|
|
| | | | |
“Heartland’s first quarter earnings of $0.76 per diluted common share clearly surpassed expectations. Quarterly net income available to common stockholders of $15.5 million was more than double our net income of $6.7 million in the first quarter last year.”
Lynn B. Fuller, chairman and chief executive officer, Heartland Financial USA, Inc. |
Dubuque, Iowa, Monday, April 27, 2015-Heartland Financial USA, Inc. (NASDAQ: HTLF) today reported net income available to common stockholders of $15.5 million, or $0.76 per diluted common share, for the quarter ended March 31, 2015, compared to $6.7 million, or $0.36 per diluted common share, for the first quarter of 2014. Return on average common equity was 13.58% and return on average assets was 0.97% for the first quarter of 2015, compared to 7.41% and 0.47%, respectively, for the same quarter in 2014.
Positively affecting net income for the quarter were increases in net interest income, securities gains and gains on sale of loans held for sale and a reduction in provision for loan and lease losses. These improvements were partially offset by increases in the noninterest expense categories of salaries and employee benefits, professional fees and other noninterest expenses.
Commenting on Heartland’s first quarter 2015 results, Lynn B. Fuller, Heartland’s chairman and chief executive officer said, “Heartland’s first quarter earnings of $0.76 per diluted common share clearly surpassed expectations. Quarterly net income available to common stockholders of $15.5 million was more than double our net income of $6.7 million in the first quarter last year.”
On January 16, 2015, Heartland completed the acquisition of Community Banc-Corp of Sheboygan, Inc., parent company of Community Bank & Trust in Sheboygan, Wisconsin, in an all stock transaction. Simultaneous with the closing, Community Bank & Trust was merged into Heartland's Wisconsin Bank & Trust subsidiary. As of the close date, the transaction included, at fair value, total assets of $525.3 million, total loans of $395.0 million and total deposits of $434.0 million.
Subsequent to the quarter-end, Heartland announced it had entered into a definitive merger agreement with Community Bancorporation of New Mexico, Inc., parent company of Community Bank in Santa Fe, New Mexico. Under the terms of the agreement, which has been unanimously approved by the boards of directors of both companies, Heartland will acquire Community Bancorporation of New Mexico, Inc. in an all cash transaction valued at approximately $11.3 million. Simultaneous with closing of the transaction, Community Bank will be merged into Heartland’s New Mexico Bank & Trust subsidiary. The transaction is subject to approvals by Community Bancorporation of New Mexico, Inc. shareholders and bank regulatory authorities, and is expected to close during the third quarter of 2015.
Fuller commented, “Expansion of our banking franchise through M&A remains a high priority for Heartland. In the first quarter, we completed the acquisition of Community Banc-Corp of Sheboygan, Inc., a $525 million commercial banking company in Sheboygan, Wisconsin. And on April 16, we announced the proposed acquisition of Community Bancorporation of Santa Fe, Inc., a New Mexico - based holding company with assets of approximately $181 million.”
Net Interest Margin Increases in Dollars; Net Interest Margin as a Percentage of Average Earning Assets Remains Steady
Net interest margin, expressed as a percentage of average earning assets, was 3.90% during the first quarter of 2015 compared to 3.94% during the fourth quarter of 2014 and 3.92% during the first quarter of 2014.
Fuller said, "We continue to enjoy a strong net interest margin, which held up nicely at 3.90%. Our success in maintaining net interest margin above many of our peers is the result of continuous price discipline on both sides of the balance sheet. Net interest income in dollars has also increased steadily for each of the last six quarters."
Interest income increased $5.8 million or 10% to $63.1 million in the first quarter of 2015 from the $57.3 million recorded in the first quarter of 2014. After adjustment to add $2.4 million for both the first quarter of 2015 and the first quarter of 2014 for income taxes saved on the interest earned on nontaxable securities and loans, on a tax-equivalent basis, interest income in the first quarter of 2015 was $65.5 million compared to $59.6 million in the first quarter of 2014. The increase in interest income in the first quarter of 2015, as compared to the first quarter of 2014, was primarily due to an increase in average earning assets, which increased $578.9 million or 11% during the first quarter of 2015 compared to the first quarter of 2014, with approximately $375.0 million attributable to the acquisition completed during the first quarter of 2015 and the remainder attributable primarily to loan growth experienced during the last three quarters of 2014. Also contributing to the increase in interest income during the first quarter of 2015 compared to the first quarter of 2014 was a change in the composition of average earning assets from lower-yielding investments to higher-yielding loans. The percentage of average net loans and leases to total earning assets was 72% during the first quarter of 2015 compared to 67% during the first quarter of 2014.
Interest expense for the first quarter of 2015 was $9.2 million, an increase of $510,000 or 6% from $8.7 million in the first quarter of 2014. Average interest bearing liabilities increased $308.5 million or 8% for the quarter ended March 31, 2015, as compared to the same quarter in 2014, while the average interest rate paid on Heartland's interest bearing deposits and borrowings declined 1 basis point from 0.86% in the first quarter of 2014 to 0.85% in the first quarter of 2015. The average interest rate paid on savings deposits was 0.26% during the first quarter of 2015 compared to 0.33% during the first quarter of 2014 and the average interest rate paid on time deposits was 1.09% during the first quarter of 2015 compared to 1.21% during the first quarter of 2014.
Net interest income increased $5.3 million or 11% to $53.9 million in the first quarter of 2015 from the $48.6 million recorded in the first quarter of 2014. Net interest income on a tax-equivalent basis totaled $56.3 million during the first quarter of 2015, an increase of $5.3 million or 10% from the $51.0 million recorded during the first quarter of 2014.
Noninterest Income Increases; Noninterest Expense Increases
Noninterest income totaled $30.7 million during the first quarter of 2015 compared to $18.9 million during the first quarter of 2014, an increase of $11.8 million or 63%. Net securities gains totaled $4.4 million during the first quarter of 2015 compared to $781,000 during the first quarter of 2014, an increase of $3.6 million or 457%. Gains on sale of loans held for sale totaled $13.7 million during the first quarter of 2015 compared to $6.4 million during the first quarter of 2014, an increase of $7.3 million or 115%. The Community Bank & Trust acquisition completed during the first quarter of 2015 contributed approximately $1.5 million to noninterest income.
Fuller commented, “A renewed wave of residential refinancing activity in the first quarter resulted in a significant increase in gains on sale of loans compared to the prior year’s quarter. Our Heartland Mortgage unit remains a key area of emphasis for Heartland; we are making diligent efforts to increase loan production while seeking efficiencies in the back office.”
For the first quarter of 2015, noninterest expenses totaled $59.6 million compared to $52.5 million during the first quarter of 2014, an increase of $7.1 million or 13%, with approximately $4.4 million attributable to the Community Bank & Trust acquisition. The largest contributor to this increase was salaries and employee benefits, which increased $4.3 million or 13%, with $2.2 million attributable to the acquisition. Salaries and employee benefits was also affected by increases in incentive plan accruals and higher compensation in the mortgage segment during the first quarter of 2015. The other noninterest expense categories with significant increases during the first quarter of 2015 in comparison with the first quarter of 2014 were professional fees, which increased $1.5 million or 34%, and other noninterest expenses, which increased $1.2 million or 21%. The acquisition was responsible for $1.0 million of the increase in professional fees and $312,000 of the increase in other noninterest expenses.
Heartland's effective tax rate was 32.60% for the first quarter of 2015 compared to 19.82% for the first quarter of 2014. Federal low-income housing tax credits included in Heartland's income taxes totaled $145,000 during the first quarter of 2015 compared to $200,000 during the first quarter of 2014. Heartland's effective tax rate was also affected by the level of tax-exempt interest income which, as a percentage of pre-tax income, was 19.07% during the first quarter of 2015 compared to 51.28% during the first quarter of 2014. The tax-equivalent adjustment for this tax-exempt interest income was $2.4 million during both the first quarter of 2015 and the first quarter of 2014.
Exclusive of Acquisition, Loans Decline Slightly and Deposits Increase
Total assets were $6.51 billion at March 31, 2015, an increase of $454.5 million or 7% since year-end 2014. Total assets of Community Banc-Corp of Sheboygan, Inc. at acquisition date were $525.3 million. Securities represented 25% of total assets at March 31, 2015, compared to 28% at year-end 2014.
Total loans and leases held to maturity were $4.24 billion at March 31, 2015, compared to $3.88 billion at year-end 2014, an increase of $366.9 million or 9%. Included in the loan growth for the first quarter of 2015 were $395.0 million acquired in the Community Bank & Trust merger. Exclusive of this acquisition, total loans and leases held to maturity decreased $28.1 million or 1%.
Total deposits were $5.27 billion as of March 31, 2015, compared to $4.77 billion at year-end 2014, an increase of $498.4 million or 10%, with $434.0 million attributable to the Community Bank & Trust acquisition. Demand deposits totaled $1.52 billion at March 31, 2015, an increase of $219.8 million or 17% since year-end 2014, with $117.1 million attributable to the acquisition. Exclusive of $127.9 million acquired, certificates of deposits decreased $25.6 million or 3%.
Fuller said, “We continue to experience a favorable change in our deposit mix, with sustained growth in no-cost demand deposits, which now represent 29 percent of total deposits. Non-time categories now account for 83 percent of total deposits.”
Increase in Nonperforming Assets; Decrease in Provision for Loan Losses
Nonperforming loans, excluding those covered under loss sharing agreements, were $27.0 million or 0.64% of total loans and leases at March 31, 2015, compared to $25.1 million or 0.63% of total loans and leases at December 31, 2014. Exclusive of $6.1 million of nonperforming assets acquired in the acquisition of Community Bank & Trust, nonperforming assets decreased $4.4 million or 9.8% since year-end 2014.
The allowance for loan and lease losses at March 31, 2015, was 0.99% of loans and leases and 154.83% of nonperforming loans compared to 1.07% of loans and leases and 168.58% of nonperforming loans at December 31, 2014. The provision for loan losses was $1.7 million for the first quarter of 2015 compared to $6.3 million for the first quarter of 2014, which 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 2015 were $1.3 million compared to $9.4 million during the first quarter of 2014. The higher amount during the first quarter of 2014 was primarily due to a $6.8 million credit which was fully charged off.
“With nonperforming loans currently at 0.64 percent of total loans, Heartland’s credit quality can be described as exceptional. Looking back several years, we are proud to see this ratio approaching pre-recession levels,” Fuller concluded.
Conference Call Details
Heartland will host a conference call for investors at 5:00 p.m. EDT today. To participate, dial 877-407-0782 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. A replay will be available until April 26, 2016, by logging on to www.htlf.com.
About Heartland Financial USA, Inc.
Heartland Financial USA, Inc. is a diversified financial services company providing banking, mortgage, wealth management, investment, insurance and consumer finance services to individuals and businesses. Heartland currently has 86 banking locations in 63 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 (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, |
| 2015 |
| 2014 |
| Interest Income |
|
|
|
| Interest and fees on loans and leases | $ | 53,049 |
|
| $ | 46,384 |
|
| Interest on securities: |
|
|
|
| Taxable | 7,132 |
|
| 7,761 |
|
| Nontaxable | 2,916 |
|
| 3,122 |
|
| Interest on federal funds sold | 1 |
|
| — |
|
| Interest on deposits in other financial institutions | 4 |
|
| 7 |
|
| Total Interest Income | 63,102 |
|
| 57,274 |
|
| Interest Expense |
|
|
|
| Interest on deposits | 4,172 |
|
| 4,778 |
|
| Interest on short-term borrowings | 198 |
|
| 226 |
|
| Interest on other borrowings | 4,802 |
|
| 3,658 |
|
| Total Interest Expense | 9,172 |
|
| 8,662 |
|
| Net Interest Income | 53,930 |
|
| 48,612 |
|
| Provision for loan and lease losses | 1,671 |
|
| 6,331 |
|
| Net Interest Income After Provision for Loan and Lease Losses | 52,259 |
|
| 42,281 |
|
| Noninterest Income |
|
|
|
| Service charges and fees | 5,404 |
|
| 4,896 |
|
| Loan servicing income | 1,041 |
|
| 1,511 |
|
| Trust fees | 3,631 |
|
| 3,210 |
|
| Brokerage and insurance commissions | 1,087 |
|
| 1,123 |
|
| Securities gains, net | 4,353 |
|
| 781 |
|
| Loss on trading account securities | — |
|
| (38 | ) |
| Gains on sale of loans held for sale | 13,742 |
|
| 6,379 |
|
| Income on bank owned life insurance | 524 |
|
| 363 |
|
| Other noninterest income | 881 |
|
| 625 |
|
| Total Noninterest Income | 30,663 |
|
| 18,850 |
|
| Noninterest Expense |
|
|
|
| Salaries and employee benefits | 36,638 |
|
| 32,319 |
|
| Occupancy | 4,259 |
|
| 4,050 |
|
| Furniture and equipment | 2,106 |
|
| 1,890 |
|
| Professional fees | 6,044 |
|
| 4,526 |
|
| FDIC insurance assessments | 956 |
|
| 980 |
|
| Advertising | 1,181 |
|
| 1,188 |
|
| Intangible assets amortization | 631 |
|
| 624 |
|
| Other real estate and loan collection expenses | 465 |
|
| 1,052 |
|
| Loss on sales/valuations of assets, net | 353 |
|
| 163 |
|
| Other noninterest expenses | 6,981 |
|
| 5,746 |
|
| Total Noninterest Expense | 59,614 |
|
| 52,538 |
|
| Income Before Income Taxes | 23,308 |
|
| 8,593 |
|
| Income taxes | 7,599 |
|
| 1,703 |
|
| Net Income | 15,709 |
|
| 6,890 |
|
| Preferred dividends and discount | (204 | ) |
| (204 | ) |
| Net Income Available to Common Stockholders | $ | 15,505 |
|
| $ | 6,686 |
|
| Earnings per common share-diluted | $ | 0.76 |
|
| $ | 0.36 |
|
| Weighted average shares outstanding-diluted | 20,493,266 |
|
| 18,724,936 |
|
|
| | | | | | | | | | | | | | | | | | | |
| HEARTLAND FINANCIAL USA, INC. |
| CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
| DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA |
| For the Quarter Ended |
| 3/31/2015 |
| 12/31/2014 |
| 9/30/2014 |
| 6/30/2014 |
| 3/31/2014 |
| Interest Income |
|
|
|
|
|
|
|
|
|
| Interest and fees on loans and leases | $ | 53,049 |
|
| $ | 50,226 |
|
| $ | 49,311 |
|
| $ | 48,101 |
|
| $ | 46,384 |
|
| Interest on securities: |
|
|
|
|
|
|
|
|
|
| Taxable | 7,132 |
|
| 6,972 |
|
| 7,547 |
|
| 7,447 |
|
| 7,761 |
|
| Nontaxable | 2,916 |
|
| 3,190 |
|
| 3,249 |
|
| 3,708 |
|
| 3,122 |
|
| Interest on federal funds sold | 1 |
|
| — |
|
| 1 |
|
| — |
|
| — |
|
| Interest on deposits in other financial institutions | 4 |
|
| 3 |
|
| 6 |
|
| 7 |
|
| 7 |
|
| Total Interest Income | 63,102 |
|
| 60,391 |
|
| 60,114 |
|
| 59,263 |
|
| 57,274 |
|
| Interest Expense |
|
|
|
|
|
|
|
|
|
| Interest on deposits | 4,172 |
|
| 4,144 |
|
| 4,655 |
|
| 4,577 |
|
| 4,778 |
|
| Interest on short-term borrowings | 198 |
|
| 222 |
|
| 227 |
|
| 202 |
|
| 226 |
|
| Interest on other borrowings | 4,802 |
|
| 3,854 |
|
| 3,741 |
|
| 3,685 |
|
| 3,658 |
|
| Total Interest Expense | 9,172 |
|
| 8,220 |
|
| 8,623 |
|
| 8,464 |
|
| 8,662 |
|
| Net Interest Income | 53,930 |
|
| 52,171 |
|
| 51,491 |
|
| 50,799 |
|
| 48,612 |
|
| Provision for loan and lease losses | 1,671 |
|
| 2,866 |
|
| 2,553 |
|
| 2,751 |
|
| 6,331 |
|
| Net Interest Income After Provision for Loan and Lease Losses | 52,259 |
|
| 49,305 |
|
| 48,938 |
|
| 48,048 |
|
| 42,281 |
|
| Noninterest Income | | | | | | | | | |
| Service charges and fees | 5,404 |
|
| 5,078 |
|
| 4,857 |
|
| 5,254 |
|
| 4,896 |
|
| Loan servicing income | 1,041 |
|
| 1,360 |
|
| 1,319 |
|
| 1,393 |
|
| 1,511 |
|
| Trust fees | 3,631 |
|
| 3,350 |
|
| 3,194 |
|
| 3,343 |
|
| 3,210 |
|
| Brokerage and insurance commissions | 1,087 |
|
| 1,115 |
|
| 1,044 |
|
| 1,158 |
|
| 1,123 |
|
| Securities gains, net | 4,353 |
|
| 1,208 |
|
| 825 |
|
| 854 |
|
| 781 |
|
| Loss on trading account securities | — |
|
| — |
|
| — |
|
| — |
|
| (38 | ) |
| Gains on sale of loans held for sale | 13,742 |
|
| 7,778 |
|
| 8,384 |
|
| 8,796 |
|
| 6,379 |
|
| Income on bank owned life insurance | 524 |
|
| 399 |
|
| 371 |
|
| 339 |
|
| 363 |
|
| Other noninterest income | 881 |
|
| 945 |
|
| 612 |
|
| 398 |
|
| 625 |
|
| Total Noninterest Income | 30,663 |
|
| 21,233 |
|
| 20,606 |
|
| 21,535 |
|
| 18,850 |
|
| Noninterest Expense | | | | | | | | | |
| Salaries and employee benefits | 36,638 |
|
| 31,415 |
|
| 33,546 |
|
| 32,563 |
|
| 32,319 |
|
| Occupancy | 4,259 |
|
| 3,905 |
|
| 3,807 |
|
| 3,984 |
|
| 4,050 |
|
| Furniture and equipment | 2,106 |
|
| 2,097 |
|
| 2,033 |
|
| 2,085 |
|
| 1,890 |
|
| Professional fees | 6,044 |
|
| 5,072 |
|
| 4,429 |
|
| 4,214 |
|
| 4,526 |
|
| FDIC insurance assessments | 956 |
|
| 960 |
|
| 888 |
|
| 980 |
|
| 980 |
|
| Advertising | 1,181 |
|
| 1,442 |
|
| 1,383 |
|
| 1,511 |
|
| 1,188 |
|
| Intangible assets amortization | 631 |
|
| 487 |
|
| 521 |
|
| 591 |
|
| 624 |
|
| Other real estate and loan collection expenses | 465 |
|
| 524 |
|
| 215 |
|
| 518 |
|
| 1,052 |
|
| Loss on sales/valuations of assets, net | 353 |
|
| 116 |
|
| 447 |
|
| 1,379 |
|
| 163 |
|
| Other noninterest expenses | 6,981 |
|
| 7,930 |
|
| 7,386 |
|
| 6,834 |
|
| 5,746 |
|
| Total Noninterest Expense | 59,614 |
|
| 53,948 |
|
| 54,655 |
|
| 54,659 |
|
| 52,538 |
|
| Income Before Income Taxes | 23,308 |
|
| 16,590 |
|
| 14,889 |
|
| 14,924 |
|
| 8,593 |
|
| Income taxes | 7,599 |
|
| 4,327 |
|
| 2,916 |
|
| 4,150 |
|
| 1,703 |
|
| Net Income | 15,709 |
|
| 12,263 |
|
| 11,973 |
|
| 10,774 |
|
| 6,890 |
|
| Preferred dividends and discount | (204 | ) |
| (204 | ) |
| (205 | ) |
| (204 | ) |
| (204 | ) |
| Net Income Available to Common Stockholders | $ | 15,505 |
|
| $ | 12,059 |
|
| $ | 11,768 |
|
| $ | 10,570 |
|
| $ | 6,686 |
|
| Earnings per common share-diluted | $ | 0.76 |
|
| $ | 0.64 |
|
| $ | 0.63 |
|
| $ | 0.56 |
|
| $ | 0.36 |
|
| Weighted average shares outstanding-diluted | 20,493,266 |
|
| 18,762,272 |
|
| 18,752,748 |
|
| 18,746,735 |
|
| 18,724,936 |
|
|
| | | | | | | | | | | | | | | | | | | |
| HEARTLAND FINANCIAL USA, INC. |
| CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
| DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA |
| As Of |
| 3/31/2015 |
| 12/31/2014 |
| 9/30/2014 |
| 6/30/2014 |
| 3/31/2014 |
| Assets |
|
|
|
|
|
|
|
|
|
| Cash and due from banks | $ | 104,475 |
|
| $ | 64,150 |
|
| $ | 63,400 |
|
| $ | 98,613 |
|
| $ | 84,744 |
|
| Federal funds sold and other short-term investments | 7,257 |
| | 9,721 |
| | 4,436 |
| | 4,047 |
| | 3,884 |
|
| Cash and cash equivalents | 111,732 |
| | 73,871 |
| | 67,836 |
| | 102,660 |
| | 88,628 |
|
| Time deposits in other financial institutions | 2,605 |
| | 2,605 |
| | 2,605 |
| | 3,105 |
| | 3,355 |
|
| Securities: | | | | | | | | | |
| Available for sale, at fair value | 1,353,537 |
| | 1,401,868 |
| | 1,369,703 |
| | 1,412,809 |
| | 1,400,756 |
|
| Held to maturity, at cost | 284,030 |
| | 284,587 |
| | 255,312 |
| | 257,217 |
| | 257,927 |
|
| Other investments, at cost | 18,297 |
| | 20,498 |
| | 20,514 |
| | 20,932 |
| | 18,755 |
|
| Loans held for sale | 105,670 |
|
| 70,514 |
|
| 93,054 |
|
| 87,173 |
|
| 54,862 |
|
| Loans and leases: |
|
|
|
|
|
|
|
|
|
| Held to maturity | 4,243,689 |
|
| 3,876,745 |
|
| 3,798,305 |
|
| 3,694,734 |
|
| 3,577,776 |
|
| Loans covered by loss share agreements | — |
|
| 1,258 |
|
| 3,850 |
|
| 4,379 |
|
| 5,466 |
|
| Allowance for loan and lease losses | (41,854 | ) |
| (41,449 | ) |
| (41,698 | ) |
| (40,892 | ) |
| (38,573 | ) |
| Loans and leases, net | 4,201,835 |
|
| 3,836,554 |
|
| 3,760,457 |
|
| 3,658,221 |
|
| 3,544,669 |
|
| Premises, furniture and equipment, net | 145,132 |
|
| 130,713 |
|
| 132,240 |
|
| 133,127 |
|
| 135,054 |
|
| Other real estate, net | 19,097 |
| | 19,016 |
| | 20,475 |
| | 24,395 |
| | 28,083 |
|
| Goodwill | 51,073 |
|
| 35,583 |
|
| 35,583 |
|
| 35,583 |
|
| 35,583 |
|
| Other intangible assets, net | 44,024 |
|
| 33,932 |
|
| 33,399 |
|
| 32,732 |
|
| 32,690 |
|
| Cash surrender value on life insurance | 95,118 |
|
| 82,638 |
|
| 82,224 |
|
| 81,840 |
|
| 81,486 |
|
| FDIC indemnification asset | — |
|
| — |
|
| 83 |
|
| 124 |
|
| 190 |
|
| Other assets | 74,126 |
|
| 59,433 |
|
| 61,122 |
|
| 63,792 |
|
| 64,854 |
|
| Total Assets | $ | 6,506,276 |
|
| $ | 6,051,812 |
|
| $ | 5,934,607 |
|
| $ | 5,913,710 |
|
| $ | 5,746,892 |
|
| Liabilities and Equity |
|
|
|
|
|
|
|
|
|
| Liabilities |
|
|
|
|
|
|
|
|
|
| Deposits: |
|
|
|
|
|
|
|
|
|
| Demand | $ | 1,515,004 |
|
| $ | 1,295,193 |
|
| $ | 1,274,439 |
|
| $ | 1,221,703 |
|
| $ | 1,195,457 |
|
| Savings | 2,863,744 |
|
| 2,687,493 |
|
| 2,599,850 |
|
| 2,556,784 |
|
| 2,582,166 |
|
| Time | 887,650 |
|
| 785,336 |
|
| 852,430 |
|
| 862,995 |
|
| 885,741 |
|
| Total deposits | 5,266,398 |
|
| 4,768,022 |
|
| 4,726,719 |
|
| 4,641,482 |
|
| 4,663,364 |
|
| Short-term borrowings | 259,335 |
|
| 330,264 |
|
| 348,305 |
|
| 420,494 |
|
| 256,250 |
|
| Other borrowings | 361,300 |
|
| 395,705 |
|
| 334,311 |
|
| 329,507 |
|
| 334,706 |
|
| Accrued expenses and other liabilities | 51,896 |
|
| 61,504 |
|
| 41,873 |
|
| 49,806 |
|
| 35,237 |
|
| Total Liabilities | 5,938,929 |
|
| 5,555,495 |
|
| 5,451,208 |
|
| 5,441,289 |
|
| 5,289,557 |
|
| Stockholders' Equity |
|
|
|
|
|
|
|
|
|
| Preferred equity | 81,698 |
|
| 81,698 |
|
| 81,698 |
|
| 81,698 |
|
| 81,698 |
|
| Common stock | 20,586 |
| | 18,511 |
| | 18,477 |
| | 18,468 |
| | 18,455 |
|
| Capital surplus | 147,642 |
| | 95,816 |
| | 94,393 |
| | 93,334 |
| | 92,199 |
|
| Retained earnings | 312,212 |
| | 298,764 |
| | 288,555 |
| | 278,632 |
| | 269,908 |
|
| Accumulated other comprehensive income (loss) | 5,255 |
| | 1,528 |
| | 276 |
| | 289 |
| | (4,903 | ) |
| Treasury stock at cost | (46 | ) | | — |
| | — |
| | — |
| | (22 | ) |
| Total Equity | 567,347 |
|
| 496,317 |
|
| 483,399 |
|
| 472,421 |
|
| 457,335 |
|
| Total Liabilities and Equity | $ | 6,506,276 |
|
| $ | 6,051,812 |
|
| $ | 5,934,607 |
|
| $ | 5,913,710 |
|
| $ | 5,746,892 |
|
|
| | | | | | | | | | | | | | | | | | | |
| HEARTLAND FINANCIAL USA, INC. |
| CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
| DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA |
| | For the Quarter Ended |
| | 3/31/2015 |
| 12/31/2014 |
| 9/30/2014 |
| 6/30/2014 |
| 3/31/2014 |
| Average Balances |
|
|
|
|
|
|
|
|
|
| Assets | $ | 6,454,271 |
|
| $ | 5,974,188 |
|
| $ | 5,882,792 |
|
| $ | 5,800,104 |
|
| $ | 5,770,350 |
|
| Loans and leases, net of unearned | 4,267,593 |
|
| 3,899,465 |
|
| 3,812,218 |
|
| 3,692,159 |
|
| 3,571,127 |
|
| Deposits | 5,161,782 |
|
| 4,784,592 |
|
| 4,710,177 |
|
| 4,665,993 |
|
| 4,633,192 |
|
| Earning assets | 5,857,204 |
|
| 5,508,287 |
|
| 5,426,336 |
|
| 5,321,149 |
|
| 5,278,331 |
|
| Interest bearing liabilities | 4,398,184 |
|
| 4,123,478 |
|
| 4,099,526 |
|
| 4,091,233 |
|
| 4,089,691 |
|
| Common stockholders' equity | 463,048 |
|
| 406,664 |
|
| 393,740 |
|
| 380,561 |
|
| 365,889 |
|
| Total stockholders' equity | 544,746 |
|
| 488,362 |
|
| 475,438 |
|
| 462,259 |
|
| 447,587 |
|
| Tangible common stockholders' equity | 401,294 |
|
| 361,916 |
|
| 348,423 |
|
| 334,747 |
|
| 318,898 |
|
|
|
|
|
|
|
|
|
|
|
| Key Performance Ratios |
|
|
|
|
|
|
|
|
|
| Annualized return on average assets | 0.97 | % |
| 0.80 | % |
| 0.79 | % |
| 0.73 | % |
| 0.47 | % |
| Annualized return on average common equity | 13.58 | % |
| 11.77 | % |
| 11.86 | % |
| 11.14 | % |
| 7.41 | % |
| Annualized return on average common tangible equity | 15.67 | % |
| 13.22 | % |
| 13.40 | % |
| 12.66 | % |
| 8.50 | % |
| Annualized ratio of net charge-offs to average loans and leases | 0.12 | % |
| 0.32 | % |
| 0.18 | % |
| 0.05 | % |
| 1.07 | % |
Annualized net interest margin(1) | 3.90 | % |
| 3.94 | % |
| 3.96 | % |
| 4.04 | % |
| 3.92 | % |
Efficiency ratio, fully taxable equivalent(2) | 70.95 | % |
| 69.99 | % |
| 70.76 | % |
| 70.97 | % |
| 74.94 | % |
| |
| (1) Computed on a tax equivalent basis using an effective tax rate of 35%. |
| (2) Refer to the "Non-GAAP Reconciliation-Efficiency Ratio" table that follows for details of this non-GAAP measure. |
|
| | | | | | | | | | | | | | | | | | | |
| HEARTLAND FINANCIAL USA, INC. |
| CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
| DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA |
| | For the Quarter Ended |
| 3/31/2015 |
| 12/31/2014 |
| 9/30/2014 |
| 6/30/2014 |
| 3/31/2014 |
| Reconciliation of Non-GAAP Measure-Efficiency Ratio | | | | | | | | | |
| Net interest income | $ | 53,930 |
|
| $ | 52,171 |
|
| $ | 51,491 |
|
| $ | 50,799 |
|
| $ | 48,612 |
|
Taxable equivalent adjustment(1) | 2,393 |
|
| 2,550 |
|
| 2,613 |
|
| 2,762 |
|
| 2,372 |
|
| Fully taxable equivalent net interest income | 56,323 |
| | 54,721 |
| | 54,104 |
| | 53,561 |
| | 50,984 |
|
| Noninterest income | 30,663 |
|
| 21,233 |
|
| 20,606 |
|
| 21,535 |
|
| 18,850 |
|
| Securities gains, net | (4,353 | ) |
| (1,208 | ) |
| (825 | ) |
| (854 | ) |
| (781 | ) |
| Adjusted income | $ | 82,633 |
| | $ | 74,746 |
| | $ | 73,885 |
| | $ | 74,242 |
| | $ | 69,053 |
|
| |
|
|
|
|
|
|
|
|
|
| Total noninterest expenses | $ | 59,614 |
|
| $ | 53,948 |
|
| $ | 54,655 |
|
| $ | 54,659 |
|
| $ | 52,538 |
|
| Less: |
|
|
|
|
|
|
|
|
|
| Intangible assets amortization | 631 |
|
| 487 |
|
| 521 |
|
| 591 |
|
| 624 |
|
| Partnership investment in historic rehabilitation tax credits | — |
|
| 1,028 |
|
| 1,408 |
|
| — |
|
| — |
|
| Loss on sales/valuation of assets, net | 353 |
|
| 116 |
|
| 447 |
|
| 1,379 |
|
| 163 |
|
| Adjusted noninterest expenses | $ | 58,630 |
| | $ | 52,317 |
| | $ | 52,279 |
| | $ | 52,689 |
| | $ | 51,751 |
|
| | | | | | | | | | |
Efficiency ratio, fully taxable equivalent(2) | 70.95 | % | | 69.99 | % | | 70.76 | % | | 70.97 | % | | 74.94 | % |
| | | | | | | | | | |
| (1) Computed on a tax equivalent basis using an effective tax rate of 35%. |
| (2) Efficiency ratio, fully taxable equivalent, expresses noninterest expenses as a percentage of fully taxable equivalent net interest income and noninterest income. Noninterest income and noninterest expenses exclude items that management believes are not comparable among the periods presented. This measure should not be considered a substitute for operating results determined in accordance with GAAP. Management believes the presentation of the non-GAAP measure provides supplemental useful information for proper understanding of the financial results. |
|
| | | | | | | | | | | | | | | | | | | |
| HEARTLAND FINANCIAL USA, INC. |
| CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) |
| DOLLARS IN THOUSANDS, EXCEPT PER SHARE AND FULL TIME EQUIVALENT EMPLOYEE DATA |
| As of and for the Quarter Ended |
| 3/31/2015 |
| 12/31/2014 |
| 9/30/2014 |
| 6/30/2014 |
| 3/31/2014 |
| Common Share Data |
|
|
|
|
|
|
|
|
|
| Book value per common share | $ | 23.59 |
|
| $ | 22.40 |
|
| $ | 21.74 |
|
| $ | 21.16 |
|
| $ | 20.36 |
|
Tangible book value per common share(1) | $ | 20.41 |
|
| $ | 19.99 |
|
| $ | 19.30 |
|
| $ | 18.69 |
|
| $ | 17.86 |
|
| ASC 320 effect on book value per common share | $ | 0.38 |
|
| $ | 0.19 |
|
| $ | 0.10 |
|
| $ | 0.13 |
|
| $ | (0.16 | ) |
| Common shares outstanding, net of treasury stock | 20,585,072 |
|
| 18,511,125 |
|
| 18,477,463 |
|
| 18,467,646 |
|
| 18,454,048 |
|
Tangible capital ratio(2) | 6.52 | % |
| 6.16 | % |
| 6.06 | % |
| 5.88 | % |
| 5.78 | % |
| | | | | | | | | | |
| Loan and Lease Data |
|
|
|
|
|
|
|
|
|
| Loans held to maturity: |
|
|
|
|
|
|
|
|
|
| Commercial and commercial real estate | $ | 3,067,315 |
|
| $ | 2,743,140 |
|
| $ | 2,709,544 |
|
| $ | 2,650,517 |
|
| $ | 2,547,625 |
|
| Residential mortgage | 413,938 |
|
| 380,341 |
|
| 360,309 |
|
| 341,697 |
|
| 365,162 |
|
| Agricultural and agricultural real estate | 411,732 |
|
| 423,827 |
|
| 404,423 |
|
| 389,918 |
|
| 370,348 |
|
| Consumer | 351,981 |
|
| 330,555 |
|
| 326,148 |
|
| 315,234 |
|
| 297,978 |
|
| Unearned discount and deferred loan fees | (1,277 | ) |
| (1,118 | ) |
| (2,119 | ) |
| (2,632 | ) |
| (3,337 | ) |
| Total loans and leases held to maturity | $ | 4,243,689 |
|
| $ | 3,876,745 |
|
| $ | 3,798,305 |
|
| $ | 3,694,734 |
|
| $ | 3,577,776 |
|
| | | | | | | | | | |
| Loans covered under loss share agreements: |
|
|
|
|
|
|
|
|
|
| Commercial and commercial real estate | $ | — |
|
| $ | 54 |
|
| $ | 1,188 |
|
| $ | 1,208 |
|
| $ | 2,292 |
|
| Residential mortgage | — |
|
| 1,204 |
|
| 1,762 |
|
| 1,995 |
|
| 2,062 |
|
| Agricultural and agricultural real estate | — |
|
| — |
|
| 573 |
|
| 567 |
|
| 502 |
|
| Consumer | — |
|
| — |
|
| 327 |
|
| 609 |
|
| 610 |
|
| Total loans and leases covered under loss share agreements | $ | — |
|
| $ | 1,258 |
|
| $ | 3,850 |
|
| $ | 4,379 |
|
| $ | 5,466 |
|
|
|
|
|
|
|
|
|
|
|
| Other Selected Trend Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Effective tax rate | 32.60 | % |
| 26.08 | % |
| 19.59 | % |
| 27.81 | % |
| 19.82 | % |
| Full time equivalent employees | 1,776 |
|
| 1,631 |
|
| 1,646 |
|
| 1,658 |
|
| 1,668 |
|
| Trust assets under management | $ | 2,064,044 |
|
| $ | 1,860,546 |
|
| $ | 1,820,612 |
|
| $ | 1,859,643 |
|
| $ | 1,736,308 |
|
| Total Residential Mortgage Loan Applications | $ | 647,487 |
|
| $ | 383,845 |
|
| $ | 445,039 |
|
| $ | 460,533 |
|
| $ | 316,829 |
|
| Residential Mortgage Loans Originated | $ | 319,581 |
|
| $ | 293,268 |
|
| $ | 312,428 |
|
| $ | 277,895 |
|
| $ | 175,249 |
|
| Residential Mortgage Loans Sold | $ | 268,786 |
|
| $ | 281,250 |
|
| $ | 283,677 |
|
| $ | 208,429 |
|
| $ | 149,993 |
|
| Residential Mortgage Loan Servicing Portfolio | $ | 3,578,409 |
|
| $ | 3,498,724 |
|
| $ | 3,362,717 |
|
| $ | 3,198,510 |
|
| $ | 3,107,589 |
|
| | | | | | | | | | |
| (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 |
| | 3/31/2015 |
| 12/31/2014 |
| 9/30/2014 |
| 6/30/2014 |
| 3/31/2014 |
| Allowance for Loan and Lease Losses |
|
|
|
|
|
|
|
|
|
| Balance, beginning of period | $ | 41,449 |
|
| $ | 41,698 |
|
| $ | 40,892 |
|
| $ | 38,573 |
|
| $ | 41,685 |
|
| Provision for loan and lease losses | 1,671 |
|
| 2,866 |
|
| 2,553 |
|
| 2,751 |
|
| 6,331 |
|
| Charge-offs on loans not covered by loss share agreements | (2,004 | ) |
| (4,020 | ) |
| (2,649 | ) |
| (1,392 | ) |
| (10,617 | ) |
| Charge-offs on loans covered by loss share agreements | — |
|
| — |
|
| — |
|
| (8 | ) |
| (41 | ) |
| Recoveries | 738 |
|
| 905 |
|
| 894 |
|
| 913 |
|
| 1,215 |
|
| Recoveries on loans covered by loss share agreements | — |
|
| — |
|
| 8 |
|
| 55 |
|
| — |
|
| Balance, end of period | $ | 41,854 |
|
| $ | 41,449 |
|
| $ | 41,698 |
|
| $ | 40,892 |
|
| $ | 38,573 |
|
| | | | | | | | | | |
| Asset Quality |
|
|
|
|
|
|
|
|
|
| Not covered under loss share agreements: |
|
|
|
|
|
|
|
|
|
| Nonaccrual loans | $ | 27,023 |
|
| $ | 25,070 |
|
| $ | 30,130 |
|
| $ | 29,076 |
|
| $ | 31,928 |
|
| Loans and leases past due ninety days or more as to interest or principal payments | 9 |
|
| — |
|
| — |
|
| — |
|
| — |
|
| Other real estate owned | 19,097 |
|
| 19,016 |
|
| 19,873 |
|
| 23,761 |
|
| 28,033 |
|
| Other repossessed assets | 404 |
|
| 445 |
|
| 506 |
|
| 414 |
|
| 397 |
|
| Total nonperforming assets not covered under loss share agreements | $ | 46,533 |
|
| $ | 44,531 |
|
| $ | 50,509 |
|
| $ | 53,251 |
|
| $ | 60,358 |
|
| | | | | | | | | | |
| Covered under loss share agreements: |
|
|
|
|
|
|
|
|
|
| Nonaccrual loans | $ | — |
|
| $ | 278 |
|
| $ | 297 |
|
| $ | 297 |
|
| $ | 820 |
|
| Other real estate owned | — |
|
| — |
|
| 602 |
|
| 634 |
|
| 50 |
|
| Total nonperforming assets covered under loss share agreements | $ | — |
|
| $ | 278 |
|
| $ | 899 |
|
| $ | 931 |
|
| $ | 870 |
|
| | | | | | | | | | |
| Performing troubled debt restructured loans | $ | 10,904 |
|
| $ | 12,133 |
|
| $ | 11,994 |
|
| $ | 12,076 |
|
| $ | 12,548 |
|
| | | | | | | | | | |
| Nonperforming Assets Activity |
|
|
|
|
|
|
|
|
|
| Balance, beginning of period | $ | 44,809 |
|
| $ | 51,408 |
|
| $ | 54,182 |
|
| $ | 61,228 |
|
| $ | 73,450 |
|
| Net loan charge offs | (1,266 | ) |
| (3,115 | ) |
| (1,747 | ) |
| (432 | ) |
| (9,443 | ) |
| New nonperforming loans | 4,059 |
|
| 5,226 |
|
| 5,911 |
|
| 4,264 |
|
| 5,328 |
|
| Acquired nonperforming assets | 6,101 |
| | — |
| | — |
| | — |
| | — |
|
Reduction of nonperforming loans(1) | (4,493 | ) |
| (6,446 | ) |
| (2,679 | ) |
| (4,145 | ) |
| (3,303 | ) |
| OREO/Repossessed assets sales proceeds | (2,312 | ) |
| (1,252 | ) |
| (4,313 | ) |
| (5,878 | ) |
| (4,731 | ) |
| OREO/Repossessed assets writedowns, net | (319 | ) |
| (918 | ) |
| (38 | ) |
| (902 | ) |
| (80 | ) |
| Net activity at Citizens Finance Co. | (46 | ) |
| (94 | ) |
| 92 |
|
| 47 |
|
| 7 |
|
| Balance, end of period | $ | 46,533 |
|
| $ | 44,809 |
|
| $ | 51,408 |
|
| $ | 54,182 |
|
| $ | 61,228 |
|
| |
| Asset Quality Ratios Excluding Assets Covered Under Loss Share Agreements | | | | | | | | | |
| Ratio of nonperforming loans and leases to total loans and leases | 0.64 | % |
| 0.63 | % |
| 0.79 | % |
| 0.79 | % |
| 0.89 | % |
| Ratio of nonperforming assets to total assets | 0.72 | % |
| 0.73 | % |
| 0.85 | % |
| 0.90 | % |
| 1.06 | % |
| Annualized ratio of net loan charge-offs to average loans and leases | 0.12 | % |
| 0.32 | % |
| 0.18 | % |
| 0.05 | % |
| 1.07 | % |
| Allowance for loan and lease losses as a percent of loans and leases | 0.99 | % |
| 1.07 | % |
| 1.10 | % |
| 1.11 | % |
| 1.08 | % |
| Allowance for loan and lease losses as a percent of nonperforming loans and leases | 154.83 | % |
| 168.58 | % |
| 138.40 | % |
| 140.64 | % |
| 120.81 | % |
| Loans delinquent 30-89 days as a percent of total loans | 0.42 | % |
| 0.21 | % |
| 0.32 | % |
| 0.25 | % |
| 0.31 | % |
| | | | | | | | | | |
| (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, 2015 |
| March 31, 2014 |
| Average |
|
|
|
|
| Average |
|
|
|
|
| Balance |
| Interest |
| Rate |
| Balance |
| Interest |
| Rate |
| Earning Assets |
|
|
|
|
|
|
|
|
|
|
|
| Securities: |
|
|
|
|
|
|
|
|
|
|
|
| Taxable | $ | 1,283,509 |
|
| $ | 7,132 |
|
| 2.25 | % |
| $ | 1,298,930 |
|
| $ | 7,761 |
|
| 2.42 | % |
Nontaxable(1) | 331,339 |
|
| 4,486 |
|
| 5.49 |
|
| 443,120 |
|
| 4,803 |
|
| 4.40 |
|
| Total securities | 1,614,848 |
|
| 11,618 |
|
| 2.92 |
|
| 1,742,050 |
|
| 12,564 |
|
| 2.92 |
|
| Interest bearing deposits | 9,194 |
|
| 4 |
|
| 0.18 |
|
| 6,417 |
|
| 7 |
|
| 0.44 |
|
| Federal funds sold | 7,617 |
|
| 1 |
|
| 0.05 |
|
| 809 |
|
| — |
|
| — |
|
Loans and leases:(2) |
|
|
|
|
|
|
|
|
|
|
|
Commercial and commercial real estate(1) | 3,023,204 |
|
| 35,875 |
|
| 4.81 |
|
| 2,500,341 |
|
| 30,311 |
|
| 4.92 |
|
| Residential mortgage | 478,948 |
|
| 4,883 |
|
| 4.13 |
|
| 400,194 |
|
| 4,352 |
|
| 4.41 |
|
Agricultural and agricultural real estate(1) | 418,251 |
|
| 5,030 |
|
| 4.88 |
|
| 374,188 |
|
| 4,738 |
|
| 5.14 |
|
| Consumer | 347,190 |
|
| 6,888 |
|
| 8.05 |
|
| 296,404 |
|
| 6,186 |
|
| 8.46 |
|
| Fees on loans | — |
|
| 1,196 |
|
| — |
|
| — |
|
| 1,489 |
|
| — |
|
| Less: allowance for loan and lease losses | (42,048 | ) |
| — |
|
| — |
|
| (42,072 | ) |
| — |
|
| — |
|
| Net loans and leases | 4,225,545 |
|
| 53,872 |
|
| 5.17 |
|
| 3,529,055 |
|
| 47,076 |
|
| 5.41 |
|
| Total earning assets | 5,857,204 |
|
| 65,495 |
|
| 4.53 | % |
| 5,278,331 |
|
| 59,647 |
|
| 4.58 | % |
| Nonearning Assets | 597,067 |
|
|
|
|
|
| 492,019 |
|
|
|
|
|
| Total Assets | $ | 6,454,271 |
|
|
|
|
|
| $ | 5,770,350 |
|
|
|
|
|
| Interest Bearing Liabilities |
|
|
|
|
|
|
|
|
|
|
|
| Savings | $ | 2,830,961 |
|
| $ | 1,795 |
|
| 0.26 | % |
| $ | 2,538,418 |
|
| $ | 2,062 |
|
| 0.33 | % |
| Time, $100,000 and over | 344,360 |
|
| 838 |
|
| 0.99 |
|
| 340,344 |
|
| 875 |
|
| 1.04 |
|
| Other time deposits | 536,170 |
|
| 1,539 |
|
| 1.16 |
|
| 566,998 |
|
| 1,841 |
|
| 1.32 |
|
| Short-term borrowings | 294,756 |
|
| 198 |
|
| 0.27 |
|
| 306,070 |
|
| 226 |
|
| 0.30 |
|
| Other borrowings | 391,937 |
|
| 4,802 |
|
| 4.97 |
|
| 337,861 |
|
| 3,658 |
|
| 4.39 |
|
| Total interest bearing liabilities | 4,398,184 |
|
| 9,172 |
|
| 0.85 | % |
| 4,089,691 |
|
| 8,662 |
|
| 0.86 | % |
| Noninterest Bearing Liabilities |
|
|
|
|
|
|
|
|
|
|
|
| Noninterest bearing deposits | 1,450,291 |
|
|
|
|
|
| 1,187,432 |
|
|
|
|
|
| Accrued interest and other liabilities | 61,050 |
|
|
|
|
|
| 45,640 |
|
|
|
|
|
| Total noninterest bearing liabilities | 1,511,341 |
|
|
|
|
|
| 1,233,072 |
|
|
|
|
|
| Stockholders' Equity | 544,746 |
|
|
|
|
|
| 447,587 |
|
|
|
|
|
| Total Liabilities and Stockholders' Equity | $ | 6,454,271 |
|
|
|
|
|
| $ | 5,770,350 |
|
|
|
|
|
Net interest income(1) |
|
| $ | 56,323 |
|
|
|
|
|
| $ | 50,985 |
|
|
|
Net interest spread(1) |
|
|
|
| 3.68 | % |
|
|
|
|
| 3.72 | % |
Net interest income to total earning assets(1) |
|
|
|
| 3.90 | % |
|
|
|
|
| 3.92 | % |
| Interest bearing liabilities to earning assets | 75.09 | % |
|
|
|
|
| 77.48 | % |
|
|
|
|
| | | | | | | | | | | | |
| (1) Computed on a tax equivalent basis using an effective tax rate of 35% |
| (2) Nonaccrual loans are included in average loans outstanding. |
|
| | | | | | | | | | | | | | | |
| HEARTLAND FINANCIAL USA, INC. |
| SELECTED FINANCIAL DATA - SUBSIDIARY BANKS (Unaudited) |
| DOLLARS IN THOUSANDS |
| | As of and For the Quarter Ended |
| | 3/31/2015 | 12/31/2014 | 9/30/2014 | 6/30/2014 | 3/31/2014 |
| Total Assets |
|
|
|
|
|
| Dubuque Bank and Trust Company | $ | 1,413,772 |
| $ | 1,508,573 |
| $ | 1,389,241 |
| $ | 1,393,391 |
| $ | 1,346,025 |
|
| Wisconsin Bank & Trust | 1,128,104 |
| 650,658 |
| 664,630 |
| 658,773 |
| 631,501 |
|
| New Mexico Bank & Trust | 1,113,031 |
| 1,142,580 |
| 1,069,722 |
| 1,050,117 |
| 1,020,381 |
|
| Morrill & Janes Bank and Trust Company | 888,321 |
| 898,161 |
| 867,346 |
| 837,148 |
| 859,998 |
|
Illinois Bank & Trust(1) | 748,937 |
| 778,542 |
| 798,934 |
| 803,448 |
| 772,128 |
|
| Arizona Bank & Trust | 487,059 |
| 470,997 |
| 471,661 |
| 467,966 |
| 472,141 |
|
| Rocky Mountain Bank | 477,799 |
| 468,671 |
| 480,345 |
| 472,079 |
| 456,201 |
|
| Minnesota Bank & Trust | 169,254 |
| 167,808 |
| 165,580 |
| 165,250 |
| 157,965 |
|
| Summit Bank & Trust | 140,868 |
| 134,145 |
| 137,774 |
| 135,721 |
| 116,154 |
|
| Total Deposits |
|
|
|
|
|
| Dubuque Bank and Trust Company | $ | 1,166,070 |
| $ | 1,211,896 |
| $ | 1,055,036 |
| $ | 1,001,798 |
| $ | 1,066,711 |
|
| Wisconsin Bank & Trust | 939,157 |
| 554,722 |
| 564,674 |
| 558,654 |
| 544,323 |
|
| New Mexico Bank & Trust | 880,422 |
| 860,465 |
| 828,637 |
| 814,523 |
| 790,172 |
|
| Morrill & Janes Bank and Trust Company | 696,606 |
| 703,016 |
| 686,833 |
| 680,176 |
| 673,325 |
|
Illinois Bank & Trust(1) | 625,885 |
| 600,357 |
| 654,592 |
| 649,082 |
| 648,325 |
|
| Arizona Bank & Trust | 378,422 |
| 351,635 |
| 390,167 |
| 382,011 |
| 381,121 |
|
| Rocky Mountain Bank | 407,958 |
| 395,609 |
| 395,728 |
| 384,856 |
| 379,017 |
|
| Minnesota Bank & Trust | 148,773 |
| 150,146 |
| 148,453 |
| 148,260 |
| 142,750 |
|
| Summit Bank & Trust | 124,113 |
| 111,859 |
| 118,896 |
| 118,275 |
| 104,598 |
|
| Net Income (Loss) |
|
|
|
|
|
| Dubuque Bank and Trust Company | $ | 6,016 |
| $ | 5,184 |
| $ | 4,480 |
| $ | 4,135 |
| $ | 2,381 |
|
| Wisconsin Bank & Trust | 2,181 |
| 1,737 |
| 1,077 |
| 1,299 |
| 1,068 |
|
| New Mexico Bank & Trust | 4,164 |
| 2,015 |
| 3,201 |
| 2,855 |
| 2,199 |
|
| Morrill & Janes Bank and Trust Company | 1,656 |
| 2,157 |
| 1,626 |
| 1,711 |
| 1,301 |
|
Illinois Bank & Trust(1) | 2,482 |
| 1,721 |
| 1,538 |
| 1,465 |
| 1,329 |
|
| Arizona Bank & Trust | 677 |
| 1,159 |
| 551 |
| 1,243 |
| 837 |
|
| Rocky Mountain Bank | 1,156 |
| 1,684 |
| 1,448 |
| 388 |
| 1,049 |
|
| Minnesota Bank & Trust | 162 |
| 395 |
| 106 |
| 59 |
| 122 |
|
| Summit Bank & Trust | 305 |
| (491 | ) | (65 | ) | (82 | ) | (434 | ) |
| Return on Average Assets |
|
|
|
|
|
| Dubuque Bank and Trust Company | 1.66 | % | 1.43 | % | 1.27 | % | 1.20 | % | 0.67 | % |
| Wisconsin Bank & Trust | 0.83 |
| 1.05 |
| 0.65 |
| 0.82 |
| 0.69 |
|
| New Mexico Bank & Trust | 1.52 |
| 0.72 |
| 1.20 |
| 1.10 |
| 0.88 |
|
| Morrill & Janes Bank and Trust Company | 0.77 |
| 0.99 |
| 0.76 |
| 0.81 |
| 0.62 |
|
Illinois Bank & Trust(1) | 1.35 |
| 0.87 |
| 0.73 |
| 0.73 |
| 0.75 |
|
| Arizona Bank & Trust | 0.58 |
| 0.97 |
| 0.47 |
| 1.05 |
| 0.74 |
|
| Rocky Mountain Bank | 0.99 |
| 1.42 |
| 1.22 |
| 0.34 |
| 0.92 |
|
| Minnesota Bank & Trust | 0.40 |
| 0.98 |
| 0.26 |
| 0.15 |
| 0.32 |
|
| Summit Bank & Trust | 0.92 |
| (1.46 | ) | (0.19 | ) | (0.26 | ) | (1.57 | ) |
| Net Interest Margin as a Percentage of Average Earning Assets |
|
|
|
|
|
| Dubuque Bank and Trust Company | 3.55 | % | 3.69 | % | 3.63 | % | 3.67 | % | 3.72 | % |
| Wisconsin Bank & Trust | 4.44 |
| 4.09 |
| 4.24 |
| 4.27 |
| 4.41 |
|
| New Mexico Bank & Trust | 3.88 |
| 3.73 |
| 3.85 |
| 3.96 |
| 3.80 |
|
| Morrill & Janes Bank and Trust Company | 3.35 |
| 3.35 |
| 3.51 |
| 3.50 |
| 3.17 |
|
Illinois Bank & Trust(1) | 3.69 |
| 3.61 |
| 3.43 |
| 3.65 |
| 3.56 |
|
| Arizona Bank & Trust | 4.17 |
| 4.28 |
| 4.23 |
| 4.47 |
| 4.37 |
|
| Rocky Mountain Bank | 4.31 |
| 4.74 |
| 4.44 |
| 4.36 |
| 4.21 |
|
| Minnesota Bank & Trust | 3.95 |
| 4.02 |
| 3.84 |
| 3.88 |
| 3.79 |
|
| Summit Bank & Trust | 4.16 |
| 3.74 |
| 3.81 |
| 3.98 |
| 4.03 |
|
| |
| (1) Includes Galena State Bank & Trust Co. for the quarters ended March 31, 2014, June 30, 2014, September 30, 2014 and December 31, 2014. |
|
| | | | | | | | | | | | | | | | | | | |
| HEARTLAND FINANCIAL USA, INC. |
| SELECTED FINANCIAL DATA - SUBSIDIARY BANKS (Unaudited) |
| DOLLARS IN THOUSANDS |
| As of |
| 3/31/2015 |
| 12/31/2014 |
| 9/30/2014 |
| 6/30/2014 |
| 3/31/2014 |
| Total Portfolio Loans and Leases |
|
|
|
|
|
|
|
|
|
| Dubuque Bank and Trust Company | $ | 907,956 |
|
| $ | 952,114 |
|
| $ | 917,092 |
|
| $ | 908,729 |
|
| $ | 897,860 |
|
| Wisconsin Bank & Trust | 865,323 |
|
| 502,310 |
|
| 509,364 |
|
| 496,486 |
|
| 465,969 |
|
| New Mexico Bank & Trust | 635,843 |
|
| 635,402 |
|
| 609,170 |
|
| 575,685 |
|
| 556,928 |
|
| Morrill & Janes Bank and Trust Company | 475,295 |
| | 440,899 |
| | 445,100 |
| | 429,326 |
| | 400,243 |
|
Illinois Bank & Trust(1) | 439,757 |
| | 429,772 |
| | 419,202 |
| | 414,803 |
| | 410,932 |
|
| Arizona Bank & Trust | 355,986 |
|
| 342,731 |
|
| 335,648 |
|
| 328,438 |
|
| 343,298 |
|
| Rocky Mountain Bank | 343,008 |
|
| 354,455 |
|
| 356,049 |
|
| 339,479 |
|
| 317,513 |
|
| Minnesota Bank & Trust | 114,477 |
| | 110,920 |
| | 104,061 |
| | 105,142 |
| | 98,818 |
|
| Summit Bank & Trust | 87,913 |
|
| 90,515 |
|
| 88,199 |
|
| 84,040 |
|
| 72,898 |
|
| Allowance For Loan and Lease Losses |
|
|
|
|
|
|
|
|
|
| Dubuque Bank and Trust Company | $ | 9,376 |
|
| $ | 9,403 |
|
| $ | 9,143 |
|
| $ | 9,441 |
|
| $ | 8,839 |
|
| Wisconsin Bank & Trust | 5,148 |
|
| 5,216 |
|
| 5,327 |
|
| 4,564 |
|
| 4,281 |
|
| New Mexico Bank & Trust | 6,670 |
|
| 6,863 |
|
| 6,688 |
|
| 6,628 |
|
| 6,388 |
|
| Morrill & Janes Bank and Trust Company | 3,200 |
| | 2,305 |
| | 2,077 |
| | 1,741 |
| | 1,137 |
|
Illinois Bank & Trust(1) | 5,056 |
| | 4,734 |
| | 5,343 |
| | 4,888 |
| | 4,551 |
|
| Arizona Bank & Trust | 3,566 |
|
| 3,258 |
|
| 3,432 |
|
| 3,754 |
|
| 3,913 |
|
| Rocky Mountain Bank | 3,155 |
|
| 3,450 |
|
| 4,048 |
|
| 4,179 |
|
| 3,965 |
|
| Minnesota Bank & Trust | 1,170 |
| | 1,116 |
| | 1,052 |
| | 1,071 |
| | 1,021 |
|
| Summit Bank & Trust | 850 |
|
| 1,554 |
|
| 996 |
|
| 1,099 |
|
| 1,054 |
|
| Nonperforming Loans and Leases |
|
|
|
|
|
|
|
|
|
| Dubuque Bank and Trust Company | $ | 4,056 |
|
| $ | 3,067 |
|
| $ | 6,151 |
|
| $ | 5,718 |
|
| $ | 7,729 |
|
| Wisconsin Bank & Trust | 8,857 |
|
| 2,967 |
|
| 3,335 |
|
| 3,617 |
|
| 4,904 |
|
| New Mexico Bank & Trust | 4,386 |
|
| 6,416 |
|
| 5,550 |
|
| 4,781 |
|
| 5,195 |
|
| Morrill & Janes Bank and Trust Company | 406 |
| | 380 |
| | 519 |
| | 368 |
| | 129 |
|
Illinois Bank & Trust(1) | 5,499 |
| | 5,939 |
| | 7,611 |
| | 7,039 |
| | 6,152 |
|
| Arizona Bank & Trust | 1,009 |
|
| 2,156 |
|
| 2,732 |
|
| 2,946 |
|
| 3,200 |
|
| Rocky Mountain Bank | 2,111 |
|
| 1,954 |
|
| 3,008 |
|
| 3,471 |
|
| 3,271 |
|
| Minnesota Bank & Trust | — |
| | — |
| | — |
| | — |
| | — |
|
| Summit Bank & Trust | 40 |
|
| 1,076 |
|
| 583 |
|
| 567 |
|
| 584 |
|
| Allowance As a Percent of Total Loans and Leases |
|
|
|
|
|
|
|
|
|
| Dubuque Bank and Trust Company | 1.03 | % |
| 0.99 | % |
| 1.00 | % |
| 1.04 | % |
| 0.98 | % |
| Wisconsin Bank & Trust | 0.59 |
|
| 1.04 |
|
| 1.05 |
|
| 0.92 |
|
| 0.92 |
|
| New Mexico Bank & Trust | 1.05 |
|
| 1.08 |
|
| 1.10 |
|
| 1.15 |
|
| 1.15 |
|
| Morrill & Janes Bank and Trust Company | 0.67 |
| | 0.52 |
| | 0.47 |
| | 0.41 |
| | 0.28 |
|
Illinois Bank & Trust(1) | 1.15 |
| | 1.10 |
| | 1.27 |
| | 1.18 |
| | 1.11 |
|
| Arizona Bank & Trust | 1.00 |
|
| 0.95 |
|
| 1.02 |
|
| 1.14 |
|
| 1.14 |
|
| Rocky Mountain Bank | 0.92 |
|
| 0.97 |
|
| 1.14 |
|
| 1.23 |
|
| 1.25 |
|
| Minnesota Bank & Trust | 1.02 |
| | 1.01 |
| | 1.01 |
| | 1.02 |
| | 1.03 |
|
| Summit Bank & Trust | 0.97 |
|
| 1.72 |
|
| 1.13 |
|
| 1.31 |
|
| 1.45 |
|
| |
| (1) Includes Galena State Bank & Trust Co. for the quarters ended March 31, 2014, June 30, 2014, September 30, 2014 and December 31, 2014. |
