- Earnings call transcript Q3 2022

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Operator

Greetings, and welcome to the HTLF Third Quarter 2022 Conference Call. This afternoon, HTLF distributed its third quarter press release, and hopefully, you've had the chance to review the results. If there is anyone on this call who did not receive a copy, you may access it at HTLF's website at htlf.com. With us today from management are Bruce Lee, President and CEO; and Bryan McKeag, Executive Vice President and Chief Financial Officer. Management will provide a brief summary of the quarter, and then we will open the call to your questions.

forward-looking presentation, the like providing Commission. information under guidelines the that remind today begin by the of defined some management of we I and to would everyone falls the Before Securities as Exchange statements will be

part and must out projected. predictions and future forward-looking statements guidelines, of that the company's actual I presentation statements, differ those during the this concerning these materially results hopes, of any As point made beliefs, from could expectations are

these may Additional from website to sir. ahead, on at on the At included information factors and over turn time now website. company's call time Lee is HTLF. XX-K this to company's Please XX-Q the will Bruce time, or SEC's go in be the the filings, I which obtained Mr.

Bruce Lee

Good strong afternoon, earnings third XXXX This us today discuss everyone. to Lee, as appreciate joining is quarter Welcome CEO. President you performance. you, we Thank continued Josh. and HTLF's conference I call. Bruce HTLF's

minutes, excellent few around our third questions Bryan with today Officer, $X.XX, strong, who once approach continues regarding shareholders credit of information additional EPS net exceeding common next had and million that can call Credit quarter our for income Chief McKeag, Also Chief HTLF again answer the joining to quality Jones, of the turn I'll is results. clean to disciplined portfolios. us $XX.X over deliver across quarter For credit Officer, then a Financial highlights, our third Nathan available expectations. to discuss

million growth, results of exceeding linked third In excluding see our the million. guidance totaled ongoing strategy. $XXX quarter the X% from continue of organic from execution the or and to loan our $XXX PPP, quarter, We

to points a XX.XX, decreased ago. lower ratio than basis efficiency Our year XXX

near be efficiency driving remained XX,XXX with only and lows to points. quarterly excellent, credit We at growth. continues our basis investing net our delinquency charge-offs, historic XX while in for quality And are strategically

saw by portfolios. increased by From commercial the saw $XXX growth X%. and banks. estate and risk increased seasonal lines. real start new XX $XX industrial credit We loans In On quarter, commercial rate last were our to $XXX quality in the increased credit growth and million. occupied million average, continued scores to the of Nonowner deposits. higher or linked X% customers new representing used ag paydown highlights. million million ratings measured new decreased our credit slightly significantly XX% have than $XX third million loan strength XX%. commercial X%, these Construction their $X We real $XXX loan $XXX million and portfolio eight as by XX% with decreased quarter, we added harvest in XXX loan originations in million portfolio Let's of variable quarter. occupied loans or or relationships, from overall or and as of compared Owner funded commercial estate structures

in where generated significant made fee-generating derivatives, our which product our X% breadth revenue, management services driving markets a have fees treasury from verticals total investments loan finance opening in We're trade and products We and and exchange. our business In specialized commercial the business card is interest million and of rate expertise, capital XX% in $X.X as up increase new quarter. foreign syndications, depth The are doors. year-to-date. deposit linked such including business, industry

portfolio, solid we pipeline expect to $XXX commercial saw at X% by increased quarter. linked commercial million the or and in $X consumer growth of $XX the X% million loan In or fourth from million quarter billion, expect fourth loans Residential by million to and to $XXX linked over we grow loans $X.X quarter. $XX from the consumer mortgage the quarter. our strong grow Our remains million in

million $XX deposits. the linked to Overall, were from increase Turning Non-time accounts. million time quarter grew from $XX in deposits a continue quarter, bearing increased well our deposits the total an $XX.X while deposits of of non-time of consecutive record linked quarter. billion, or deposits rise. and deposits of to X% deposit to We deposit XXth us XX% non-interest growth. mix. accounts, flat, maintain positioning our are as in are exceptional rates XX%

third Our at Core points, began basis deposit quarter, deposit strategy remained acquisition execute XX market specific to and in favorable continues deposit well. basis total strategies. costs at to us points. pricing with costs XX deposit serve mix along Late deposit low the we

teams Additionally, are attracting our commercial on focused relationships. deposit only including relationships, new

our base. increases to and price maintain deposit overall addressing are grow We

continue top As from top, our Wage talent to talent an closely. in revenue retention culture our and we're XX.XX. demonstrates to basis top high, ratio increasing our we and strategies, but employee and growth remain our reducing inflation to has The for decrease significant ago be Competitive monitor our expenses. we I executing efficiency investing and at people. decreased points XXX continue pressures been core it's successful, demands mentioned for the a year area and strategy are

to credit Turning metrics. key

remained linked across X.X% excellent loans ratio Our basis points points. a at XX as to points. loans. credit disciplined decreased represented percentage continues approach XX quarter. remains rated our XX near basis Non-performing the from Non-performing Delinquency in credit assets basis to historic portfolios. Non-pass of loans total quality low deliver lows X.X% of at assets total

acquisition, retaining are strong growth optimization quality. and and for geographic maintaining expenses, credit new Lastly, of controlling and zero. sustained reported concerns continued around and economic in momentum we branch XX,XXX, current to and Despite environment. conservative net headwinds, credit our organic a rounds of against progress the continue talent, goals charge-offs We'll only customer growth, which well-positioned essentially approach third quarter, loan given take we've to the attracting

been in HTLF project smooth, Colorado charter executed have M&A. growth budget. schedule to To California, transitions banks growth continues pleased Arizona, the achieve our and divisions unlock that We that Minnesota will of cost on and through We're with support efficiencies becoming and on consolidations, and through Bank. we've creating report bank operational also consolidation, organically charter successfully four date, and and capacity

savings We expect capacity his and fourth finish consolidation quarter is in the Bryan of comments. in to project and share million after the details charter XXXX, will annual deliver of more early complete. $XX

continue also XX% Since of beginning to the have optimize We our branch total we to XXXX, number XXX locations. branches of reduced by network. our

Our categories. Customer to small recognition, or improving market been banking customer the steadfast industry Greenwich teams banks our to Coalition commercial benchmark as the Leaders commitment enrich by mission the community a business. at experience banks earn service ease our likelihood been of and our has satisfaction, XXXX achieved of and in overall middle customers. employee the HTLF's business six best-in-class time. commercial banking To to exceeded recognized one recommend named scores that by have customer, to Congratulations doing specific a lives is all the delivering margin Experience and to

teams Hannan, our turn employees performance Bechen, each call more Michelle to their I'll insight Chief the Bryan live mission and McKeag, to specifically work financials. details on customers, now Oky consolidation communities Shane their and Our this and delivering our over strength, on to daily, and Doris Financial Don and recognize and other. charter to growth [ph], Officer, for hard I Tracy for want dedication

Bryan McKeag

good afternoon. and Bruce Thanks,

of HTLF results outlined, were Bruce loan strong this growth; PPP; another with trends. credit core of large quarter's Included revenue $XXX expense stable, levels; clean just in solid million, share for As two growth improved earnings quarter excluding this items. and was $X.XX, per

both HTLF sale loss $X.X that $X.XX. these on again and of million by that's I'll costs you a items available website. and quarter. increase would as the remind over million million investor release $X.X our with charter and $X.X I start losses, the decreased in million, by earnings $X.X of totaled are last income of provision First, which securities, per comments, my third million. I quarter our restructure the IR consolidation pretax section usually for do a Together, credit $X.X presentation share earnings the

towards mentioned, loans. by loan concerns of the low elevated reserves declined slightly and delinquencies just specifically, that economic This credit allowance loans growth At loans decline, healthy quarter X.XX% of at from this X.X% C&I, loan includes $XXX.X credit of weighted quarter. credit million XX quarter, total quarter, which unfunded losses, for related Bruce quarters driven loans. zero rose X.X% this loans million charge-offs commitments, increased this or remained to the related provision of after points Non-pass More allowance basis was stable, and already net trends. as five on losses lending again And virtually the quarter. quarter-end, to for both while and loans total non-performing heavily was last were $X.X

purchase valuations totaled unamortized sheet or the XX loan on at loans. addition, of points balance total quarter-end, basis $XX In million

XX next investments, exceeding generate declined quarter assets, Moving to X.XX% yield $X $X of with at a equivalent will tax the representing of flows end cash billion, over which billion million the and to XX% $XXX months.

actively to by the the taking portfolio actions continue during We several manage quarter.

portfolio. munis $XXX moved we a of million with market the taxable August, value in held-to-maturity $XXX First, of million into

decrease common The to our some XX this securities with points remained rated XX% to loan Second, HTLF's million market million new value yielding in decline X.XX% $XXX includes regards to partially of ratios risk capital And investments, quarter-end, common was growth of purchase proceeds capital, we decreased XX%. $XX strong based the million to growth. Tier used and XX earnings. points to and just opportunity yielding X.X%. equity loss we total basis flow higher capital $X.X equity at regulatory offset of fund AAA X.X% continuing ratio at X due retained utilized and to a With lastly, securities strong at sell over utilized tangible which cash take quarter revenue a the basis the to by at

increased quarter strong Fed's bearing under only up the less our the million fees fees, the last drivers $XXX,XXX PPP basis million recent sheet, of totaled quarter. to outpaced were quarter, The a deposit $X.X the investment income million yields modest costs asset-sensitive was books. to interest with X.XX%. statement, deposit interest $XXX,XXX points. as points loans increases. short-term price included yields were Total this with loan $XXX.X basis costs yields were asset increases the higher. quarter revenue. of equivalent Net on XX which quarter. basis again interest $XX.X balance funding core than and on growth, main prior rate interest XX XX increase basis rising our points points The this increases and interest which We or of Moving starting improved tax quarter with the Net than rose quarter basis higher loan just exited is rate income to margin PPP unamortized Due remaining XX and

the accounting which prior the to net million quarter. margin was points the of accretion, down was X of includes income lower prior quarter. basis interest X compared from $XX.X quarter, Non-interest basis million purchase points This $X.X

$XX million losses, was Excluding The of just this which due swaps $XX.X quarter; of wealth declined million was core $X.X there B as in a $XX higher last million to main which to gains lower to mortgage components shares. million, forecast. a was were loan security decrease interest fees and and banking revenue, the non-interest of Visa last million you may $X.X management reduction volumes short due fees syndication our the and commercial the quarter recall, to compared and on million, quarter, weaker environment; and sale $X.X gain income respectively, rate $XXX,XXX

million in $X.X revenue quarter. totaled to That's Non-interest and X%, up exceeding continue $X last So, XXXX. from million million total, Shifting this into to $XXX.X grow grew or expenses. will expectations expenses quarter.

million categories $XXX tax with million. salary million run coming rate $XXX,XXX. $X.X $XXX million operating within in was benefits came The recurring significant expense asset in with quarter other our range most expense, the losses, to up compared and restructuring, decreased under category flat just expenses, last $XXX and credit expected to a relatively the of were core down this significant million. was Most increase $XXX.X quarter, decreased improvement gains expenses only or costs which of which to and $XXX,XXX Excluding and

As quarter, XX.XX% growth the strong expense of again ratio quarter to from a efficiency last core the down result to quarter. continued XX.XX% this third and revenue reductions improve,

loan strong X% and Non-time continue by remain to pipelines, will per as into and our in Bruce XXXX, expected rate noted, X% range ahead, quarter. momentum growth quarter. of X% the muted growth support is next significant remains which highlighted Looking deposit HTLF's per expected quarter to loan

credit net deposit growth September a the continued quarter, next changes, projected beta rate mounting growth is $X basis, Fed normal increase the should to for from losses delinquencies charge-offs low quarters grow impact and $X digits assuming of us loan increase some deposit Provision net range on XX net given The next $X quarter additional no over past million, on increase, interest with a their basis $X projected million a of expected offset income rate XX%. basis projected current of near is million to income points to loan and few by for to an levels. on single percentage the from pressure remain million and Fed remain reflecting annualized assuming interest full Fed Assuming pricing. in

million conditions in investment $XX expenses to materialize. range. to economic quarter deposits helping significant and impact are on remain $XXX the million in should recession excluding to further fees expected be declines operating begin range in gains projections and a have However, commercial lower wealth is losses, $XXX to $XX million mortgage could and expected syndication million with future strong income, offset the swap per to Core non-interest and to provisions a revenue. banking Recurring

beginning to and between core already million and five by as next next and quarters. to optimization average costs since total, be project estimate $XX turn the consolidated completed we total the challenging. expenses a year, ratio $XX be call reduction benefits remain develop and Charter $X.X million branch And XXXX. over evidenced to XX% complete assets run with to the when of However, on range, continue In expected And will point over rate the are beginning in are over Bruce costs quarter. the believe of the the materialize benefits $XX in XX inflationary million our excluding credits, in the Validation million basis tax benefits to are will wage inflation, pressures, that, the million additional to QX basis rate. I'll reach consolidation consolidations will confident remain for XX $X including restructuring remaining We we months. is early the to to questions. XX% the tax annualized a an that finally, next reasonable

Bruce Lee

for lines open the Question-and-Answer can Session up we now. Josh, questions

Operator

Thank you.

[Operator now Instructions] be question session. first a Andrew from Our conducting Leisch We Piper will Q&A, with question-and-answer comes Sandler.

You may proceed.

Andrew Liesch

Good afternoon, guys.

growth curious loans much much that syndicated loan the that loans how on some in participate the growth just historically of here pipeline. of consists I'm the granular and pipeline larger the questions Some this you've like you of how of originated? versus out more some

Bruce Lee

syndicated that the our you don't bring it's a it's I exact of books versus but would Andrew, -- much the relationships number, I more have focus tell loans a and on that granular granular towards would more larger relationships. we

Bryan McKeag

quarter. this small we loans had handful only syndicated Andrew, And a of quarter and last

of most own. is So, our growth that

Andrew Liesch

Okay.

Bruce Lee

be And primary the and beyond the bank even just in we syndicate would limits. would syndication, our

Andrew Liesch

I just are Right. Right. And what mean, then sound doesn't deposit that on or It on this loan growth funding? non-TD be growth outlook, thoughts much. growth like to the going

just top from then look should of some securities and the to cash that? flows at on we maybe it portfolio continue So, the CDs added as

Bryan McKeag

that's deposits. shortfalls. We portfolio would know, tough a on Yeah. environment. cash with all investment in from start any working the fund to order to Obviously, trying grow flow as we're this we But

use some will some, loans, willing we're can to to have and think do investment to likely fund the I cash that. get we we but flow

Bruce Lee

to we of quarter, my balance still mentioned the XX% because the our initiated consumer do we've the of pandemic, first acquisition third in markets. investments. that, I in in our since sheet And we're time able for as actually late comments, have a And each customer strategies in

Andrew Liesch

beta normal XX million annualized the guys you just of far of that that reasonable? And as bps beta that have spread income so as concerned? $X from mentioned upcoming Is seen question one then, Gotcha. to is mean, I the What $X far million on XX%. hike. you the

Bryan McKeag

Yeah.

lower. have betas a if not probably been that, bit of leaving Our half little

a need would will I down is then significant And high we're forward, little XX range, when we, probably we up. to our do that think in this There's the That We'll probably move. cost. catch even been bit rates pressure last in do. to change. XX rate rising going we'll pretty environment. banks, move from really XX be much holding still most what probably a to other So, like some up have

Andrew Liesch

right. question for the taking here. step Gotcha. Thanks I'll All back.

Bruce Lee

bet. You

Operator

One Thank questions. for moment you.

McEvoy Our with next from question comes Terry Stephens.

You may proceed.

Terry McEvoy

everybody. afternoon, Good Hi.

Bruce Lee

Hi, Terry.

Terry McEvoy

what in you it reviewing feedback as notes is customers? And Maybe got acquisition an consolidation talk hearing from and you all, but I'm from charter here. That's from just wondering, my could about didn't described at looking data, employees, smooth. I've just Bruce, outsider seeing really or to you're curious be just disrupt client the in, appear what quarterly kind growth your seat? would of the

Bruce Lee

with got how this Yeah. to Terry, I've pleased gone. more couldn't I you, be has tell

great the are we I M&A. call, months. feedback six that recognize always into planning the on been said The that just over And employee several our has And M&A. As really, we've and the internal we doing of this own for put teams, really at them this is fantastic.

all. feedback had still there are our use, say, their We that able the either, using cases, also can now traveling In positive, they That I advantage most issues everybody especially any haven't there. customer numbers. In they've the into can a systems. is say, been them. maintain very cases, would they has Arizona, They're at same they routing had for few real a to wintering, account front been and was branches use just most of it that's get in it's supply had down us hasn't where new and change with the issue. conversations absolutely with out growth probably significant to that at And all numbers. have numbers, our very account customers and slowed required all. had our that them and no us really their we But It hasn't at positive, strategies growth on to impact an really where issues.

Terry McEvoy

When and at loans, asset and uptick quality restructuring debt troubled the look hear. was to there I include performing great OREO quarter-over-quarter. That's an

And what QX? popped loan up? are of of kind there's you wondering what kind portfolio. OREO expectations within And and I'm TDRs your your for saw -- So, again, those just the

Bryan McKeag

on give thoughts Nathan Nathan? in Yeah. Terry. and that, jump let I'll your probably

Nathan Jones

Yeah.

of As showed the over last we half. look it NPLs think the at year, OREO, overall headway -- kind much around we've that and kind we've the really of and so a year really made I a

you And improved at a XXXX, lot quarter, If look at look to of lines. other this them upside NPLs, along compared same credit if you XX%. our whether significantly the they're down have our compare metrics

a are from almost by is XXXX from XX%-plus, in XXXX X.X% X.X%. to delinquencies dollar from at looking loan down non-pass it Our down perspective,

execute through we think to not of and happening We just portfolio. as credit improvement. anything the to that? a working work be perfectly issues and any overall we work of to be don't top and So, to it's linear you'd on quality everything continue linear, see little that are expect improving add optimistic overall to able that of work. continue don't the but the relation continue a to the We make positive and significant overall through us hard Bryan, put on we'll we to continue to continue in to portfolio, back results like to in bit improve

Bryan McKeag

Yeah.

think move extensions I in Both rated time, it just it And during bit TDRs, to so some TDR. a there's we more a to we help. cumulative line little One, did holdover we to that COVID. of needed needed just It's I them the into a the there I just a related Terry, TDRs, are payments had couple crossed some need it's was the from additional just hoped. substandard. the of making its that. as time, know,

in reserve process healthy anyway. pretty a getting they're So, our

... just So

Terry McEvoy

questions. taking for my Thanks Perfect.

Bruce Lee

Terry. Thanks

Operator

One you. Thank questions. for moment

comes from question next DelMonte with Damon Our KBW.

You proceed. may

Damon DelMonte

Good guys. afternoon, Hey.

provision. on the Bryan, guidance wanted Just clarify, the to

the from read you this and broader kind release, potential comment softening conditions. million also changes and I Like for said trends. between $X was million, loan credit growth assuming a in think $X quarter I of about what of no economic

So the provision quarter. kind that factored of was into this

they loan economic about million the way this And think we similar the $X continue million quarter? to we saw a that, we growth? specifically if trends for provision do what $X see are, So, could the to

Bryan McKeag

Yeah.

this I from drivers And there's both the are last quarter. quarter think unless unemployment. main went a use change, significant those we down and that

that don't we about, -- got really we've -- on can credit think those the going be this range, I we non-pass as quality a go be low bit, in a just if range. the in right down talked so, with And into that good quarter can quite you delinquencies, based

go So, then and will change whatever and a economics, it as through there normally little and be here a mostly in then we get just that we the bumps loan process. growth

Damon DelMonte

And million, to million you Okay. hope All for the keep the did then, $XXX it say right. Great. range? guidance, in expense $XXX you

Bryan McKeag

Correct. Yeah. component run that rate exclude I -- core That that kind would of items those of it, bumpy. talked

Damon DelMonte

Yeah. Exactly.

Okay.

on in throughout able that pressures we're now of just point, you of a and environment guess, that flattish the the given kind kind wage to So, things the inflationary other confidence keep of theme that quarter? gives I what have been common being

Bryan McKeag

Yeah.

a good down are I going know lot trends again really in down FTEs they're at our you if this don't if FTE We've release. earnings a Our go look quarter. the job, whole to more. done

we providing So, I a for been our think We're that have managing point. bonuses. that And we're at well. year for strong

Sometimes of we the year. at the get end bump a

inflation we've Wages we've believe able that. shape in continue all kind But all we're the always -- two, is three we -- think I So, manage last can through for to it and wage to do been on. that I for quarters of working we're good something that.

Damon DelMonte

it. Got

basis well lastly, if points later outlook, that bodes Okay. then margin this XX just we Great. get for another it And guys. seems week, the on you

a where As as Do XXXX, margin the into through first go that year could see you ramping as as you at far do time with margin? through you go you of will year? the rising of think the of least Or of you kind do the XXXX? betas further out see peaking you limit to like think half some what start of deposit expansion look kind can you

Bryan McKeag

How as that. keep we keep moving, as up. will moving in part they big a play -- will Fed the Obviously, Yeah. long

there's have push, to if a cover for to a asset there's said, XX% no to that, benefit that. we on rate enough increase I go have do so. deposits, and XX% getting we that it really at say we sensitivity If into then deposit beta, gets a As have probably of still competitive to XX%,

Bruce Lee

I at more describe will And think way about we it, to little continue margin that out, quarter at it. look increasing, I to starts the time the Fed then look Damon, -- top one and the probably the way I it, stops a our would it I increase

Bryan McKeag

Because asset there's on lag a reprice.

Bruce Lee

the effect. Because lag we have

Bryan McKeag

Yeah.

Damon DelMonte

Got it.

Okay.

Bruce Lee

what's feel off as investment We year. already of our billion our about because of positive portfolio, Bryan with coming very funding mentioned, loan growth $X next

Damon DelMonte

Great. Great.

Perfect. That’s Thanks color. Appreciate Okay. all a I lot. had. the

Bryan McKeag

you. Thank

Bruce Lee

Thanks Damon.

Operator

Thank you. comes [Operator Our next with Instructions] question Davidson. Rulis Jeff from D.A.

You may proceed.

Jeffrey Rulis

Thanks. Good afternoon.

we follow-up a of guess, you I that Just a questions Are achieving of you a you couple of that? achieved that? is on. you've recognize of have complete a completely have through path along to that amount sort savings percent already, a certain Bryan, consolidation? to earmarked already there do for of number the the million think that $XX savings Or -- on do a in to you've be

Bryan McKeag

Yeah. ask me really And it's that the hard. Bruce all time.

linked As been things, to you We've term, expenses and that been know, branch are a but lot have FTEs. that we of right? reducing this I tougher of -- our optimization. -- stuff but to -- These some our is use hate

So, all on that you've got at time. same the going

million that continue that will we've as what Jeff, chunk pretty expenses in to more out of a and much consolidations Again, out is piece year of got much core the a but good average that in. at So at, from already good hard from is it's and the forms. have we pretty There of optimization look good already -- we pretty next how assets, various to it consolidate. branch taken are I I the But to same happening be I how figure well, think. that is But doing we're charter time. feel $XX

Bruce Lee

banks got quite out done. like it's I of four mean, linear, Jeff, our we've XX not

XX, of we've not our it. probably expenses. with So, the we've our without at But that way necessarily that's increasing XX% have look we achieved definitely increased to capacity the growth the had,

way $XX about XX% still million nine though think we're already have or probably it, months go. to of to we've the So, we the I achieved, eight even XX%

Jeffrey Rulis

or puts that, cut bit hopping for think are lot In I detail. is takes this. well, helpful. the to just a the you the Thanks smooth, income largely just remainder. I But quarter in of swap income? but other linked that little for housekeeping and over pretty it. I a of the Bryan, as there, reduced consolidations half. mean, line on of suppose, down, the Was you bodes that transition said, kind to Got as And Bruce, Kind the alluded

Bryan McKeag

Yeah. last that's And quarter. gain B where Visa also, was share the

Bruce Lee

$X.X million.

Bryan McKeag

$X.X million. Yeah.

Jeffrey Rulis

And you do swap, some to offset the -- of the comes sale? of think some kind maybe on that gain again the back

Bryan McKeag

Yeah.

I quarter. I what we think that the next Obviously, for can that about that to did is growth slightly a little our up. we've keep Bruce loan pipeline. projected quarter Hopefully, this But bit. some think got things in flat

Bruce Lee

would And I Yeah. that... say just

Bryan McKeag

service a our charges We can move bit. little up

Bruce Lee

to and couple have also debt. dramatically fees, last had Right. second Yeah. of that And in loan their the talking syndication some only we rate but We some of overachieved. really more about our the swap Those fees. over able not quarter, And we're growth conversations swapping more increased I capture have mean, customers quarters. a fairly floating huge capital markets income, we

Bryan McKeag

say got I the the any expect of other that as would the number that said, that's the that, and numbers that I of it told that's things future, range that terms quoted get lumpiest But as keep you that into about one going and range we of to forward. in number, having in what much that has the challenge probably I

Jeffrey Rulis

Okay.

Bruce Lee

fees. commercial feel we fees, about management card treasury very good But

the and as see in mortgage the But wealth business, is the here We October. going it's of there, because rallied not market rates have we'll how The off. business lumpy. great are run way the billings

Bryan McKeag

here certain Fed which or pretty sounds See the least in at cut, a points, week it how reacts to next XX of basis so. here

Jeffrey Rulis

And I missed it. had, maybe the I -- Okay. I didn't one clarifying. just last

you of outside led OREO. sequential uptick I in -- and/or call type? there the to of mentioned of kind Just you some increase there again, think class Was kind asset Did in non-accruals by else of the outline it, that kind an of, healthcare. anything

Bryan McKeag

No.

finally OREO the is workout thing I that us hard and I a way I can in hog it increase from years. are talked books not the off and that we've before. see had think we now have but. think about get It's the I really we talk its know operation, to a It's here credit would quarters, made guys just special about you've heard It's that credit assets try a if Midwest. to one that in our OREO. for, the working say,

Bruce Lee

you Nathan, other any that? on have color do

Nathan Jones

years, resolution even been No. we've working Bryan predates draw helping It's one on to a articulated with here for shortly. me many we're something well. here,

Jeffrey Rulis

Thanks guys.

Operator

Thank you.

at are As Lee for like Q&A to back time, no call the End of Mr. turn further this closing comments. over there now would questions to I

Bruce Lee

The of company's Josh. XX, common is ago. from $X.XX has a a stock, a you, Directors Board the Thank quarterly increase XXXX. The our executing November per dividend approved year strategy. dividend on share payable is HTLF on of HTLF X% In cash closing,

are available $XXX and we're million a delivering million linked to net of from delivered Organic $XXX million shareholders, expectations. of results, $XX.X growth X% of common $X.XX. We income quarter, totaled and we the X%. In the third EPS quarter, exceeding loan revenue, increase or

points ratio to decreased efficiency year basis XX.XX. from XXX ago a Our

improved solid, be to future Thank customer and us. to capacity joining continues you and experience, growth. executing unlock consolidation charter quality deliver for credit efficiency for we're Our seamlessly

call earnings in January. good quarterly next evening. Our late will be a Have

Operator

you. Thank Thank participating. for This call. you today's concludes conference

You may disconnect. now

Heartland Financial USA (HTLF) 1 Nov 222022 Q3 Earnings call transcript