• Heartland Financial USA, Inc. ("HTLF") Reports Quarterly Results as of September 30, 2024

    المصدر: Nasdaq GlobeNewswire / 29 أكتوبر 2024 15:10:02   America/Chicago

    Third Quarter Highlights

    • Quarterly net income available to common stockholders of $62.1 million or $1.44 per common share
    • Adjusted earnings available to common stockholders of $50.6 million or $1.17 adjusted diluted earnings per common share (non-GAAP), which excludes:
      • Gain on sale, net, of $29.7 million due to the sale of Rocky Mountain Bank branches in Montana.
      • Loss on security sales of $9.5 million.
      • Loss on fixed assets of $2.9 million due to branch closures and write-downs on properties listed for sale.
    • Common equity to total assets increased to 11.11%; while the tangible common equity ratio (non-GAAP) improved 86 basis points to 8.14%.
    • Net interest margin, full tax-equivalent (non-GAAP) increased to 3.78% for the quarter ended September 30, 2024 up from 3.73% for the quarter ended June 30, 2024.
    • Nonperforming loans were $69.9 million or 0.61% of total loans, a decrease of $33.8 million or 33% from the quarter ended June 30, 2024.
      • Charge-offs of $32.1 million, of which the majority have been reserved for in prior periods, were recorded for the third quarter.


     For the Quarter Ended For the Nine Months Ended
    September 30,
     9/30/2024 6/30/2024 9/30/2023 2024 2023
    Earnings Summary:         
    Net income/(loss) available to common stockholders (in millions)$62.1  $37.7  $46.1  $149.6  $144.2 
    Diluted earnings/(loss) per common share 1.44   0.88   1.08   3.47   3.37 
    Annualized return on average assets 1.38%  0.84%  0.94%  1.10%  1.00%
    Annualized return on average common equity 12.60   8.14   10.47   10.59   11.28 
    Annualized return on average tangible common equity (non-GAAP)(1) 18.32   12.28   16.32   15.77   17.82 
    Net interest margin 3.73   3.68   3.14   3.65   3.23 
    Net interest margin, fully tax-equivalent (non-GAAP)(1) 3.78   3.73   3.18   3.69   3.27 
    Efficiency ratio 48.58   65.69   63.77   58.94   61.86 
    Adjusted efficiency ratio, fully-tax equivalent (non-GAAP)(1) 57.98   57.73   59.95   58.16   58.98 
              
    Adjusted Earnings Summary (1):         
    Adjusted earnings available to common stockholders (in millions)$50.6  $49.6  $48.1  $152.7  $148.3 
    Adjusted diluted earnings per common share 1.17   1.15   1.12   3.54   3.47 
    Adjusted annualized return on average assets 1.14%  1.09%  0.98%  1.12%  1.02%
    Adjusted annualized return on average common equity 10.27   10.71   10.92   10.81   11.60 
    Adjusted annualized return on average tangible common equity 14.98   16.05   17.02   16.09   18.31 
              

    (1) Refer to "Non-GAAP Measures" in this earnings release for additional information on the usage and presentation of these non-GAAP measures, and refer to the financial tables for reconciliations to the most directly comparable GAAP measures.

    "HTLF delivered a solid third quarter. Net interest margin increased as we continue to pay down high cost wholesale deposits. Our tangible common equity ratio improved to 8.14%. In July we completed the strategic sale of Rocky Mountain Bank in Montana, resulting in a net gain of $29.7 million. We continue to work closely with our partners at UMB on integration planning for our two companies and we’re excited about closing the transaction, expected in Q1 2025."
    Bruce K. Lee, President and Chief Executive Officer, HTLF


    DENVER, Oct. 29, 2024 (GLOBE NEWSWIRE) -- Heartland Financial USA, Inc. (NASDAQ: HTLF) today reported the following results for the quarter ended September 30, 2024, compared to the quarter ended September 30, 2023:

    • Net income available to common stockholders of $62.1 million compared to $46.1 million, an increase of $16.1 million or 35%.
    • Earnings per diluted common share of $1.44 compared to $1.08, an increase of $0.36 or 33%.
    • Adjusted earnings available to common stockholders(1) of $50.6 million or $1.17 per diluted common share compared to $48.1 million or $1.12 per diluted common share, which excludes:
      • Gain on sale, net, of $29.7 million due to the sale of Rocky Mountain Bank branches in Montana.
      • Loss on security sales of $9.5 million.
      • Loss on fixed assets of $2.9 million due to branch closures and write-downs on properties listed for sale.
    • Net interest income of $157.9 million compared to $145.8 million, an increase of $12.1 million or 8%.
    • Annualized return on average assets of 1.38% compared to 0.94%. Adjusted annualized return on average assets(1) of 1.14% compared to 0.98%.
    • Annualized return on average common equity of 12.60% compared to 10.47%. Adjusted annualized return on average common equity(1) of 10.27% compared to 10.92%.
    • Annualized return on average tangible common equity(1) of 18.32% compared to 16.32%. Adjusted annualized return on average tangible common equity(1) of 14.98% compared to 17.02%.

    Rocky Mountain Bank Sale

    HTLF Bank closed on the sale of the Rocky Mountain Bank branches in Montana in mid-July to two purchasers, which included loans of $343.8 million, deposits of $531.9 million and fixed assets of $13.8 million. The gain on sale, net, of $29.7 million was realized in the third quarter of 2024.

    Net Interest Income and Net Interest Margin

    Net interest margin, expressed as a percentage of average earning assets, was 3.73% (3.78% on a fully tax-equivalent basis, non-GAAP) for the third quarter of 2024 compared to 3.68% (3.73% on a fully tax-equivalent basis, non-GAAP) for the second quarter of 2024, and 3.14% (3.18% on a fully tax-equivalent basis, non-GAAP) for the third quarter of 2023.

    Total interest income and average earning asset changes for the third quarter of 2024 compared to the third quarter of 2023 were:

    • Total interest income was $253.8 million compared to $245.4 million, an increase of $8.4 million or 3%, primarily attributable to an increase in yields on average earning assets. During the third quarter of 2024, HTLF recorded $5.3 million in additional interest income for a security that paid off.
    • Total interest income on a tax-equivalent basis (non-GAAP) was $255.8 million, an increase of $8.2 million or 3%, from $247.6 million. Subsequent to September 30, 2024, the fair value hedges were terminated in favorable market conditions in early October. HTLF recorded $10.3 million of interest income associated with the fair value hedges in the third quarter of 2024 in comparison to $5.6 million in the third quarter of 2023. As a result of the fair value hedge terminations, no additional interest income will be recorded.
    • Average earning assets decreased $1.60 billion or 9% to $16.84 billion compared to $18.44 billion, primarily due to the sale of $865.4 million of securities during the fourth quarter of 2023, $108.4 million of securities sold during the second quarter of 2024, and $40.3 million of securities sold during the third quarter of 2024. The proceeds were utilized to pay down high-cost wholesale deposits and borrowings.
    • The average rate on earning assets increased 71 basis points to 6.04% from 5.33%, primarily due to recent interest rate increases on earning assets.

    Total interest expense and average interest-bearing liability changes for the third quarter of 2024 compared to the third quarter of 2023 were:

    • Total interest expense was $95.9 million, a decrease of $3.8 million from $99.7 million, primarily due to a decrease in average interest-bearing liabilities.
    • The average interest rate paid on interest-bearing liabilities increased 17 basis points to 3.18% from 3.01%.
    • Average interest-bearing deposits decreased $1.65 billion or 13% to $11.03 billion from $12.68 billion.
    • The average interest rate paid on interest-bearing deposits decreased 4 basis points to 2.86% from 2.90%.
    • Average borrowings and term debt increased $478.2 million to $953.9 million from $475.7 million, and the average interest rate paid on borrowings decreased 40 basis points to 5.39% from 5.78%.

    Net interest income changes for the third quarter of 2024 compared to the third quarter of 2023 were:

    • Net interest income totaled $157.9 million compared to $145.8 million, an increase of $12.1 million or 8%.
    • Net interest income on a tax-equivalent basis (non-GAAP) totaled $159.9 million compared to $147.9 million, an increase of $12.0 million or 8%.

    Noninterest Income and Noninterest Expense

    Total noninterest income was $19.0 million during the third quarter of 2024 compared to $28.4 million during the third quarter of 2023, a decrease of $9.4 million or 33%. Significant changes within the noninterest income category for the third quarter of 2024 compared to the third quarter of 2023 were:

    • Service charges and fees decreased $1.5 million or 8% to $17.1 million from $18.6 million, primarily attributable to a decrease in consumer NSF and overdraft fees. In the fourth quarter of 2023, HTLF instituted a new fee policy across our single charter customer base in response to industry changes related to consumer overdraft fees.
    • Net security losses increased $9.4 million to $9.5 million compared to net security losses of $114,000.
    • Net gains on sales of loans held for sale decreased to $0 from $905,000, due to HTLF ceasing originations of residential mortgage loans to be sold to the secondary market.
    • Other noninterest income increased $957,000 to $1.6 million from $619,000, primarily due to an increase in deferred compensation income of $1.0 million to $1.5 million from $433,000.  

    Total noninterest expense was $85.9 million during the third quarter of 2024 compared to $111.1 million during the third quarter of 2023, a decrease of $25.1 million or 23%. Significant changes within the noninterest expense category for the third quarter of 2024 compared to the third quarter of 2023 were:

    • Salaries and employee benefits totaled $62.7 million compared to $62.3 million, an increase of $480,000 or 1%. The increase was attributable to higher benefit costs including incentive compensation and benefit expenses partially offset by a reduction of full-time equivalent employees. Full-time equivalent employees totaled 1,725 compared to 1,965, a decrease of 240 or 12%.
    • Professional fees totaled $17.4 million compared to $13.6 million, an increase of $3.8 million or 28%, primarily due to an increase legal expenses, including those associated with special asset loans.
    • Gain on sale of assets, net, totaled $26.4 million compared to a loss on sale of assets of $108,000. As discussed earlier, Rocky Mountain Bank, a division of HTLF Bank, was sold during the third quarter of 2024 which generated a gain on sale, net, of $29.7 million.

    The effective tax rate was 24.25% for the third quarter of 2024 compared to 21.89% for third quarter of 2023. The following items impacted the third quarter 2024 and 2023 tax calculations:

    • Various tax credits of $629,000 compared to $1.6 million.
    • Tax-exempt interest income as a percentage of pre-tax income of 8.92% compared to 13.14%.
    • Tax benefit of $140,000 compared to a tax expense of $41,000 resulting from the vesting of restricted stock units.
    • Tax expense of $1.1 million compared to $1.6 million resulting from the disallowed interest expense related to tax-exempt loans and securities.

    Total Assets, Total Loans and Total Deposits

    Total assets were $18.27 billion at September 30, 2024, compared to $18.81 billion at June 30, 2024, and $19.41 billion at December 31, 2023. Total assets decreased $540.1 million or 3% during the third quarter of 2024 and $1.14 billion or 6% since year-end 2023. Securities represented 27% and 29% of total assets at September 30, 2024, and December 31, 2023, respectively.

    Total loans held to maturity were $11.44 billion at September 30, 2024, compared to $11.61 billion at June 30, 2024, and $12.07 billion at December 31, 2023. Loans decreased $167.4 million or 1% during the third quarter of 2024 and $627.7 million or 5% since year-end 2023. Excluding the impact of Rocky Mountain Bank, loans held to maturity decreased $172.4 million or 1% during the third quarter of 2024 and decreased $284.0 million or 2% since year-end 2023.

    Significant changes by loan category at September 30, 2024 compared to June 30, 2024 included:

    • Commercial and business lending, which includes commercial and industrial, PPP and owner occupied commercial real estate loans, decreased $262.7 million or 4% to $5.99 billion compared to $6.26 billion. Excluding the impact of Rocky Mountain Bank, commercial and business lending decreased $119.4 million or 2%.
    • Commercial real estate lending, which includes non-owner occupied commercial real estate and construction loans, decreased $3.3 million, or less than 1%, to $3.58 billion compared to $3.58 billion. Excluding the impact of Rocky Mountain Bank, commercial real estate lending increased $67.0 million or 2%.
    • Agricultural and agricultural real estate loans decreased $167.2 million or 19% to $701.2 million compared to $868.4 million. Excluding the impact of Rocky Mountain Bank, agricultural and agricultural real estate loans decreased $99.9 million or 12%.
    • Residential mortgage loans decreased $56.7 million or 7% to $708.0 million compared to $764.7 million. Excluding the impact of Rocky Mountain Bank, residential mortgage loans decreased $25.7 million or 3%.

    Significant changes by loan category at September 30, 2024 compared to December 31, 2023 included:

    • Commercial and business lending, which includes commercial and industrial, PPP and owner occupied commercial real estate loans, decreased $298.6 million or 5% to $5.99 billion compared to $6.29 billion. Excluding the Rocky Mountain Bank loans sold of $143.3 million, commercial and business lending decreased $155.3 million or 2%.
    • Commercial real estate lending, which includes non-owner occupied commercial real estate and construction loans, increased $9.9 million or less than 1% to $3.58 billion compared to $3.57 billion. Excluding the Rocky Mountain Bank loans sold of $70.3 million, commercial real estate lending increased $80.2 million or 2%.
    • Agricultural and agricultural real estate loans decreased $218.0 million or 24% to $701.2 million compared to $919.2 million. Excluding the Rocky Mountain Bank loans sold of $67.3 million, agricultural and agricultural real estate loans decreased $150.7 million or 16%.
    • Residential mortgage loans decreased $89.8 million or 11% to $708.0 million compared to $797.8 million. Excluding the Rocky Mountain Bank loans sold of $31.0 million, residential mortgage loans decreased $58.9 million or 7%.

    Total deposits were $14.95 billion as of September 30, 2024, compared to $14.96 billion as of June 30, 2024, a decrease of $3.4 million or less than 1%. Total deposits were $14.95 billion as of September 30, 2024, compared to $16.20 billion at December 31, 2023, which was a decrease of $1.25 billion or 8%. Excluding the impact of Rocky Mountain Bank, deposits decreased $9.8 million or less than 1% during the third quarter of 2024 and decreased $716.6 million or 4% since year-end 2023.

    Total customer deposits were $14.35 billion as of September 30, 2024, compared to $14.13 billion at June 30, 2024, an increase of $217.6 million or 2%. Excluding the impact of Rocky Mountain Bank, customer deposits increased $211.2 million or 1%. Significant customer deposit changes by category at September 30, 2024, compared to June 30, 2024, included:

    • Customer demand deposits decreased $367.6 million or 8% to $4.01 billion compared to $4.38 billion. Excluding the impact of Rocky Mountain Bank, customer demand deposits decreased $235.9 million or 6%.
    • Customer savings deposits increased $270.0 million or 3% to $8.71 billion compared to $8.44 billion. Excluding the impact of Rocky Mountain Bank, customer savings deposits increased $554.4 million or 7%.
    • Customer time deposits decreased $223.1 million or 12% to $1.63 billion compared to $1.85 billion. Excluding the impact of Rocky Mountain Bank, customer time deposits decreased $107.3 million or 6%.

    Total customer deposits were $14.35 billion as of September 30, 2024, compared to $14.86 billion at December 31, 2023, a decrease of $505.1 million or 3%. Excluding the Rocky Mountain Bank customer deposits sold of $531.9 million, customer deposits increased $26.7 million. Significant customer deposit changes by category at September 30, 2024, compared to December 31, 2023, included:

    • Customer demand deposits decreased $491.1 million or 11% to $4.01 billion compared to $4.50 billion. Excluding the Rocky Mountain Bank customer demand deposits sold of $131.7 million, customer demand deposits decreased $359.3 million or 8%.
    • Customer savings deposits increased $302.0 million or 4% to $8.71 billion compared to $8.41 billion. Excluding the Rocky Mountain Bank customer savings deposits sold of $284.3 million, customer savings deposits increased $586.3 million or 7%.
    • Customer time deposits decreased $316.0 million or 16% to $1.63 billion compared to $1.94 billion. Excluding the Rocky Mountain Bank customer time deposits sold of $115.8 million, customer time deposits decreased $200.2 million or 10%.

    Total wholesale and institutional deposits were $601.9 million as of September 30, 2024, a decrease of $221.0 million or 27% from $822.9 million at June 30, 2024. Significant wholesale and institutional deposit changes by category at September 30, 2024 compared to June 30, 2024 included:

    • Wholesale and institutional savings deposits decreased $105.7 million or 33% to $213.0 million compared to $318.6 million.
    • Wholesale time deposits decreased $115.3 million or 23% to $389.0 million compared to $504.3 million.

    Total wholesale and institutional deposits were $601.9 million as of September 30, 2024, which was a decrease of $743.4 million or 55% from $1.35 billion at December 31, 2023. Significant wholesale and institutional deposit changes by category at September 30, 2024 compared to December 31, 2023 included:

    • Wholesale and institutional savings deposits decreased $181.4 million or 46% to $213.0 million compared to $394.4 million.
    • Wholesale time deposits decreased $562.0 million or 59% to $389.0 million compared to $950.9 million.

    Provision and Allowance

    Provision and Allowance for Credit Losses for Loans
    Provision for credit losses for loans for the third quarter of 2024 was $8.9 million, an increase of $6.2 million from $2.7 million recorded in the third quarter of 2023.

    The allowance for credit losses for loans totaled $106.8 million at September 30, 2024 and $122.6 million at December 31, 2023. The following items impacted the allowance for credit losses for loans at September 30, 2024:

    • Provision expense for the nine months ended September 30, 2024, totaled $22.3 million. Provision expense was primarily impacted in the third quarter of 2024 by a nonperforming food manufacturing syndication loan currently in bankruptcy proceedings. HTLF recorded a charge-off of $19.2 million for this credit during the third quarter of 2024, of which $10.0 million was reserved for in a prior period.
    • Net charge-offs of $38.0 million, of which the majority have been reserved for in prior periods, were recorded for the first nine months of 2024.

    Provision and Allowance for Credit Losses for Unfunded Commitments
    The allowance for unfunded commitments decreased $6.0 million or 36% to $10.5 million at September 30, 2024, from $16.5 million at December 31, 2023. The following impacted HTLF's allowance for credit losses for unfunded commitments during 2024:

    • Provision benefit for the nine months ended September 30, 2024, totaled $6.0 million.
    • Reduction of $82.9 million in unfunded commitments for construction loans, which carry the highest loss rate.
    • Total unfunded commitments decreased $684.5 million or 15% to $3.94 billion at September 30, 2024 compared to $4.63 billion at December 31, 2023.

    Total Provision and Allowance for Lending Related Credit Losses
    The total provision expense for lending related credit losses was $6.3 million for the third quarter of 2024 compared to $1.5 million for the third quarter of 2023. The total allowance for lending related credit losses was $117.3 million or 1.02% of total loans at September 30, 2024, compared to $139.0 million or 1.15% of total loans as of December 31, 2023.

    Nonperforming Assets

    Nonperforming assets were $76.8 million or 0.42% of total assets at September 30, 2024, compared to $110.5 million or 0.57% of total assets at December 31, 2023. Nonperforming assets were reduced by charge-offs of $32.1 million and the return to performing status of a $10.4 million owner occupied commercial real estate loan relationship. The reduction was partially offset by the addition of a $10.1 million non-owner commercial real estate loan relationship. Nonperforming loans were $69.9 million or 0.61% of total loans at September 30, 2024, compared to $97.9 million or 0.81% of total loans at December 31, 2023. At September 30, 2024, loans delinquent 30-89 days were 0.26% of total loans compared to 0.09% of total loans at December 31, 2023. The increase in the 30-89 day delinquencies was due to a single $12.8 million real estate construction loan. Other real estate owned, net, decreased $5.7 million or 46% to $6.8 million at September 30, 2024 from $12.5 million at December 31, 2023.

    Non-GAAP Financial Measures

    This earnings release contains references to financial measures which are not defined by generally accepted accounting principles ("GAAP"). Management believes the non-GAAP measures are helpful for investors to analyze and evaluate the company's financial condition and operating results. However, these non-GAAP measures have inherent limitations and should not be considered a substitute for operating results determined in accordance with GAAP. Additionally, because non-GAAP measures are not standardized, it may not be possible to compare the non-GAAP measures in this earnings release with other companies' non-GAAP measures. Reconciliations of each non-GAAP measure to the most directly comparable GAAP measure may be found in the financial tables in this earnings release.

    Below are the non-GAAP measures included in this earnings release, management's reason for including each measure and the method of calculating each measure:

    • Adjusted earnings available to common stockholders and adjusted diluted earnings per common share, adjust net income for the gain/loss from sale of securities, and other non-operating expenses as well as the tax effect of those transactions. Management believes these measures enhance the comparability net income available to common stockholders as it reflects adjustments commonly made by management, investors and analysts to evaluate the ongoing operations and enhance comparability with the results of prior periods.
    • Adjusted annualized return on average assets, adjusts net income for the gain/loss from sale of securities, and other non-operating expenses as well as the tax effect of those transactions. Management believes this measure enhances the comparability of annualized return on average assets as it reflects adjustments commonly made by management, investors and analysts to evaluate the ongoing operations and enhance comparability with the results of prior periods.
    • Annualized net interest margin, fully tax-equivalent, adjusts net interest income for the tax-favored status of certain loans and securities. Management believes this measure enhances the comparability of net interest income arising from taxable and tax-exempt sources.
    • Adjusted efficiency ratio, fully tax equivalent, expresses noninterest expenses as a percentage of fully tax-equivalent net interest income and noninterest income. This efficiency ratio is presented on a tax-equivalent basis which adjusts net interest income and noninterest expenses for the tax favored status of certain loans, securities, and tax credit projects. Management believes the presentation of this non-GAAP measure provides supplemental useful information for proper understanding of the financial results as it enhances the comparability of income and expenses arising from taxable and nontaxable sources and excludes specific items as noted in reconciliation contained in this earnings release.
    • Net interest income, fully tax equivalent, is net income adjusted for the tax-favored status of certain loans and securities. Management believes this measure enhances the comparability of net interest income arising from taxable and tax-exempt sources. Net interest margin, fully tax equivalent, is net interest income adjusted for the tax-favored status of certain loans and securities divided by average earning assets.
    • Tangible book value per common share is total common equity less goodwill and core deposit and customer relationship intangibles, net, divided by common shares outstanding, net of treasury. This measure is included as it is considered to be a critical metric to analyze and evaluate use of equity, financial condition and capital strength.
    • Tangible common equity ratio is total common equity less goodwill and core deposit and customer relationship intangibles, net, divided by total assets less goodwill and core deposit and customer relationship intangibles, net. This measure is included as it is considered to be a critical metric to analyze and evaluate financial condition and capital strength.
    • Adjusted annualized return on average common equity, adjusts net income for the loss from sale of securities, and other non-operating expenses as well as the tax effect of those transactions. Management believes this measure enhances the comparability of annualized return on average assets as it reflects adjustments commonly made by management, investors and analysts to evaluate the ongoing operations and enhance comparability with the results of prior periods.
    • Annualized return on average tangible common equity is net income excluding intangible amortization calculated as (1) net income excluding tax-effected core deposit and customer relationship intangibles amortization, divided by (2) average common equity less goodwill and core deposit and customer relationship intangibles, net. This measure is included as it is considered to be a critical metric to analyze and evaluate use of equity, financial condition and capital strength.
    • Adjusted annualized return on average tangible common equity, adjusts net income available to common stockholders for the loss from sale of securities, and other non-operating expenses as well as the tax effect of those transactions. Management believes this measure enhances the comparability of annualized return on average assets as it reflects adjustments commonly made by management, investors and analysts to evaluate the ongoing operations and enhance comparability with the results of prior periods.
    • Annualized ratio of core expenses to average assets adjusts noninterest expenses to exclude specific items noted in the reconciliation. Management includes this measure as it is considered to be a critical metric to analyze and evaluate controllable expenses related to primary business operations.

    About HTLF

    Heartland Financial USA, Inc., is a Denver, Colorado-based bank holding company operating under the brand name HTLF, with assets of $18.27 billion as of September 30, 2024. HTLF's banks serve customers in the West, Southwest and Midwest regions. HTLF is committed to serving the banking needs of privately owned businesses, their owners, executives and employees. Our core commercial business is supported by a strong retail banking operation, in addition to a diversified line of financial services including treasury management, wealth management and investments. Additional information is available at www.htlf.com.

    Safe Harbor Statement

    This release (including any information incorporated herein by reference), and future oral and written statements of the company and its management, may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the business, financial condition, results of operations, plans, objectives and future performance of HTLF.

    Any statements about the company's expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. Forward-looking statements may include information about possible or assumed future results of the company's operations or performance. These forward-looking statements are generally identified by the use of the words such as "believe", "expect", "intent", "anticipate", "plan", "intend", "estimate", "project", "may", "will", "would", "could", "should", "may", "view", "opportunity", "potential", or similar or negative expressions of these words or phrases that are used in this release, and future oral and written statements of the company and its management. Although the company may make these statements based on management’s experience, beliefs, expectations, assumptions and best estimate of future events, the ability of the company to predict results or the actual effect or outcomes of plans or strategies is inherently uncertain, and there may be events or factors that management has not anticipated. Therefore, the accuracy and achievement of such forward-looking statements and estimates are subject to a number of risks, 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 the company currently believes could have a material effect on its operations and future prospects, are detailed below and in the risk factors in HTLF's reports filed with the Securities and Exchange Commission ("SEC"), including the "Risk Factors" section under Item 1A of Part I of the company’s Annual Report on Form 10-K for the year ended December 31, 2023 and updates in HTLF's Forms 10-Q filed thereafter, and include, among others:

    • Economic and Market Conditions Risks, including risks related to the deterioration of the U.S. economy in general and in the local economies in which HTLF conducts its operations and future civil unrest, natural disasters, pandemics and governmental measures addressing them, climate change and climate-related regulations, persistent inflation, higher interest rates, supply chain issues, labor shortages, terrorist threats or acts of war;
    • Credit Risks, including risks of increasing credit losses due to deterioration in the financial condition of HTLF's borrowers, changes in asset and collateral values due to climate and other borrower industry risks, which may impact the provision for credit losses and net charge-offs;
    • Liquidity and Interest Rate Risks, including the impact of capital market conditions, rising interest rates and changes in monetary policy on our borrowings and net interest income;
    • Risks related to the planned merger with UMB Financial Corporation (the “Merger”), the fluctuation of the market value of the merger consideration, risks related to combining our businesses, including expenses related to the Merger and integration of the combined entity, risks that the Merger may not occur, and the risk of litigation related to the Merger;
    • Operational Risks, including processing, information systems, cybersecurity, vendor, business interruption, and fraud risks;
    • Strategic and External Risks, including economic, political, and competitive forces impacting our business;
    • Legal, Compliance and Reputational Risks, including regulatory and litigation risks; and
    • Risks of Owning Stock in HTLF, including stock price volatility and dilution as a result of future equity offerings and acquisitions.

    There can be no assurance that other factors not currently anticipated by HTLF will not materially and adversely affect HTLF's business, financial condition and results of operations. Additionally, all statements in this release, including forward-looking statements speak only as of the date they are made. HTLF does not undertake and specifically disclaims any obligation to publicly release the results of any revisions which may be made to or correct or update any forward-looking statement to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events or to otherwise update any statement in light of new information or future events. Further information concerning HTLF and its business, including additional factors that could materially affect HTLF's financial results, is included in HTLF’s filings with the SEC.

    -FINANCIAL TABLES FOLLOW-

    CONTACT:
    Kevin L. Thompson
    Executive Vice President
    Chief Financial Officer
    (563) 589-1994
    kthompson@htlf.com 


    HEARTLAND FINANCIAL USA, INC.
    CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
    DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
     For the Quarter Ended
    September 30,    		 For the Nine Months Ended
    September 30,
      2024   2023   2024   2023 
    Interest Income       
    Interest and fees on loans$192,506  $182,394  $587,328  $505,136 
    Interest on securities:       
    Taxable 51,116   54,800   145,511   168,948 
    Nontaxable 5,979   6,584   18,062   18,990 
    Interest on federal funds sold —   3   —   3 
    Interest on deposits with other banks and short-term investments 4,193   1,651   10,244   4,833 
    Total Interest Income 253,794   245,432   761,145   697,910 
    Interest Expense       
    Interest on deposits 82,976   92,744   247,609   231,617 
    Interest on borrowings 7,378   1,167   25,727   4,437 
    Interest on term debt 5,543   5,765   16,956   16,756 
    Total Interest Expense 95,897   99,676   290,292   252,810 
    Net Interest Income 157,897   145,756   470,853   445,100 
    Provision for credit losses 6,276   1,516   16,270   9,969 
    Net Interest Income After Provision for Credit Losses 151,621   144,240   454,583   435,131 
    Noninterest Income       
    Service charges and fees 17,100   18,553   51,127   55,316 
    Loan servicing income 111   278   349   1,403 
    Trust fees 5,272   4,734   15,847   15,810 
    Brokerage and insurance commissions 853   692   2,501   2,065 
    Capital markets fees 2,116   1,845   5,003   8,331 
    Securities gains (losses), net (9,520)  (114)  (19,573)  (1,532)
    Unrealized gain on equity securities, net 377   13   605   165 
    Net gains on sale of loans held for sale —   905   104   3,786 
    Income on bank owned life insurance 1,107   858   3,610   3,042 
    Other noninterest income 1,576   619   5,289   2,489 
    Total Noninterest Income 18,992   28,383   64,862   90,875 
    Noninterest Expense       
    Salaries and employee benefits 62,742   62,262   191,817   186,510 
    Occupancy 6,318   6,438   19,843   20,338 
    Furniture and equipment 2,062   2,720   6,554   8,698 
    Professional fees 17,448   13,616   48,351   41,607 
    FDIC insurance assessments 3,035   3,313   11,344   9,627 
    Advertising 1,937   1,633   4,663   6,670 
    Core deposit intangibles amortization 1,345   1,625   4,258   5,128 
    Other real estate and loan collection expenses, net 395   481   1,422   984 
    (Gain) loss on sales/valuations of assets, net (26,419)  108   (26,012)  (2,149)
    Acquisition, integration and restructuring costs 2,026   2,429   9,374   5,994 
    Partnership investment in tax credit projects 222   1,136   938   1,828 
    Other noninterest expense 14,816   15,292   43,214   46,307 
    Total Noninterest Expense 85,927   111,053   315,766   331,542 
    Income Before Income Taxes 84,686   61,570   203,679   194,464 
    Income taxes 20,533   13,479   48,077   44,181 
    Net Income/(Loss) 64,153   48,091   155,602   150,283 
    Preferred dividends (2,013)  (2,013)  (6,038)  (6,038)
    Net Income/(Loss) Available to Common Stockholders$62,140  $46,078  $149,564  $144,245 
    Earnings/(loss) per common share-diluted$1.44  $1.08  $3.47  $3.37 
    Weighted average shares outstanding-diluted 43,195,257   42,812,563   43,080,422   42,769,872 


    HEARTLAND FINANCIAL USA, INC.
    CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
    DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
     For the Quarter Ended
     9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023
    Interest Income         
    Interest and fees on loans$192,506  $199,161  $195,661  $192,861  $182,394 
    Interest on securities:         
    Taxable 51,116   47,381   47,014   54,573   54,800 
    Nontaxable 5,979   6,042   6,041   6,278   6,584 
    Interest on federal funds sold —   —   —   —   3 
    Interest on deposits with other banks and short-term investments 4,193   3,045   3,006   2,174   1,651 
    Total Interest Income 253,794   255,629   251,722   255,886   245,432 
    Interest Expense         
    Interest on deposits 82,976   80,499   84,134   88,071   92,744 
    Interest on borrowings 7,378   10,825   7,524   5,874   1,167 
    Interest on term debt 5,543   5,564   5,849   5,804   5,765 
    Total Interest Expense 95,897   96,888   97,507   99,749   99,676 
    Net Interest Income 157,897   158,741   154,215   156,137   145,756 
    Provision for credit losses 6,276   9,008   986   11,738   1,516 
    Net Interest Income After Provision for Credit Losses 151,621   149,733   153,229   144,399   144,240 
    Noninterest Income         
    Service charges and fees 17,100   16,964   17,063   18,708   18,553 
    Loan servicing income 111   107   131   158   278 
    Trust fees 5,272   5,532   5,043   4,905   4,734 
    Brokerage and insurance commissions 853   894   754   729   692 
    Capital markets fees 2,116   1,996   891   1,676   1,845 
    Securities gains (losses), net (9,520)  (10,111)  58   (140,007)  (114)
    Unrealized gain on equity securities, net 377   133   95   75   13 
    Net gains on sale of loans held for sale —   —   104   94   905 
    Income on bank owned life insurance 1,107   1,326   1,177   729   858 
    Other noninterest income 1,576   1,366   2,347   1,132   619 
    Total Noninterest Income 18,992   18,207   27,663   (111,801)  28,383 
    Noninterest Expense         
    Salaries and employee benefits 62,742   65,120   63,955   64,766   62,262 
    Occupancy 6,318   6,262   7,263   6,509   6,438 
    Furniture and equipment 2,062   2,155   2,337   2,901   2,720 
    Professional fees 17,448   15,372   15,531   17,060   13,616 
    FDIC insurance assessments 3,035   3,340   4,969   10,313   3,313 
    Advertising 1,937   1,368   1,358   1,677   1,633 
    Core deposit intangibles amortization 1,345   1,421   1,492   1,611   1,625 
    Other real estate and loan collection expenses, net 395   515   512   505   481 
    (Gain) loss on sales/valuations of assets, net (26,419)  193   214   2,072   108 
    Acquisition, integration and restructuring costs 2,026   5,973   1,375   4,365   2,429 
    Partnership investment in tax credit projects 222   222   494   3,573   1,136 
    Other noninterest expense 14,816   14,303   14,095   14,933   15,292 
    Total Noninterest Expense 85,927   116,244   113,595   130,285   111,053 
    Income Before Income Taxes 84,686   51,696   67,297   (97,687)  61,570 
    Income taxes 20,533   11,954   15,590   (27,324)  13,479 
    Net Income/(Loss) 64,153   39,742   51,707   (70,363)  48,091 
    Preferred dividends (2,013)  (2,012)  (2,013)  (2,012)  (2,013)
    Net Income/(Loss) Available to Common Stockholders$62,140  $37,730  $49,694  $(72,375) $46,078 
    Earnings/(loss) per common share-diluted$1.44  $0.88  $1.16  $(1.69) $1.08 
    Weighted average shares outstanding-diluted 43,195,257   43,060,354   42,915,768   42,838,405   42,812,563 


    HEARTLAND FINANCIAL USA, INC.
    CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
    DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
     As of
     9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023
    Assets         
    Cash and due from banks$228,719  $226,735  $208,176  $275,554  $248,756 
    Interest-bearing deposits with other banks and short-term investments 359,675   147,211   236,190   47,459   99,239 
    Cash and cash equivalents 588,394   373,946   444,366   323,013   347,995 
    Time deposits in other financial institutions 1,050   1,340   1,240   1,240   1,490 
    Securities:         
    Carried at fair value 4,057,335   4,185,054   4,418,222   4,646,891   5,482,687 
    Held to maturity, at cost 839,623   842,980   841,055   838,241   835,468 
    Other investments, at cost 69,511   70,684   68,524   91,277   90,001 
    Loans held for sale —   348,761   352,744   5,071   6,262 
    Loans:         
    Held to maturity 11,440,917   11,608,309   11,644,641   12,068,645   11,872,436 
    Allowance for credit losses (106,797)  (126,861)  (123,934)  (122,566)  (110,208)
    Loans, net 11,334,120   11,481,448   11,520,707   11,946,079   11,762,228 
    Premises, furniture and equipment, net 155,140   175,953   176,582   181,070   187,436 
    Goodwill 576,005   576,005   576,005   576,005   576,005 
    Core deposit intangibles, net 14,157   15,501   16,923   18,415   20,026 
    Cash surrender value on life insurance 199,998   199,036   197,671   197,085   196,694 
    Other real estate, net 6,805   7,533   2,590   12,548   14,362 
    Other assets 430,155   534,429   516,198   574,772   609,139 
    Total Assets$18,272,293  $18,812,670  $19,132,827  $19,411,707  $20,129,793 
    Liabilities and Equity         
    Liabilities         
    Deposits:         
    Demand$4,009,218  $4,244,169  $4,264,390  $4,500,304  $4,792,813 
    Savings 8,926,192   8,470,416   8,669,221   8,805,597   8,754,911 
    Time 2,017,806   2,242,005   2,368,555   2,895,813   3,553,269 
    Total deposits 14,953,216   14,956,590   15,302,166   16,201,714   17,100,993 
    Deposits held for sale —   538,308   596,328   —   — 
    Borrowings 546,219   694,909   650,033   622,255   392,634 
    Term debt 373,324   372,988   372,652   372,396   372,059 
    Accrued expenses and other liabilities 259,161   222,025   232,815   282,225   438,577 
    Total Liabilities 16,131,920   16,784,820   17,153,994   17,478,590   18,304,263 
    Stockholders' Equity         
    Preferred equity 110,705   110,705   110,705   110,705   110,705 
    Common stock 42,884   42,852   42,784   42,688   42,656 
    Capital surplus 1,098,837   1,096,619   1,093,207   1,090,740   1,088,267 
    Retained earnings 1,252,247   1,203,092   1,178,330   1,141,501   1,226,740 
    Accumulated other comprehensive income/(loss) (364,300)  (425,418)  (446,193)  (452,517)  (642,838)
    Total Equity 2,140,373   2,027,850   1,978,833   1,933,117   1,825,530 
    Total Liabilities and Equity$18,272,293  $18,812,670  $19,132,827  $19,411,707  $20,129,793 


    HEARTLAND FINANCIAL USA, INC.
    CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
    DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
     For the Quarter Ended
     9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023
    Average Balances         
    Assets$18,439,910  $19,043,362  $19,296,638  $19,667,825  $20,207,920 
    Loans, net of unearned 11,584,999   12,010,289   12,021,930   11,938,272   11,800,064 
    Total deposits 15,148,944   15,562,920   16,042,402   16,709,394   17,507,813 
    Customer deposits 14,347,965   14,768,407   14,816,652   14,969,948   14,699,235 
    Earning assets 16,838,131   17,331,435   17,597,068   17,853,957   18,439,010 
    Interest-bearing liabilities 11,986,220   12,461,957   12,607,745   12,721,680   13,158,631 
    Common equity 1,962,334   1,863,236   1,832,959   1,729,086   1,746,818 
    Total stockholders' equity 2,073,039   1,973,941   1,943,664   1,839,791   1,857,523 
    Tangible common equity (non-GAAP)(1) 1,371,515   1,271,046   1,239,313   1,133,888   1,149,992 
              
    Key Performance Ratios         
    Annualized return on average assets 1.38%  0.84%  1.08% (1.42)%  0.94%
    Adjusted annualized return on average assets (non-GAAP)(1) 1.14   1.09   1.13   0.96   0.98 
    Annualized return on average common equity (GAAP) 12.60   8.14   10.90   (16.61)  10.47 
    Adjusted annualized return on average common equity (non-GAAP)(1) 10.27   10.71   11.50   10.46   10.92 
    Annualized return on average tangible common equity (non-GAAP)(1) 18.32   12.28   16.49   (24.89)  16.32 
    Adjusted annualized return on average tangible common equity (non-GAAP)(1) 14.98   16.05   17.38   16.38   17.02 
    Annualized ratio of net charge-offs/(recoveries) to average loans 0.99   0.23   0.08   0.01   0.12 
    Annualized net interest margin (GAAP) 3.73   3.68   3.52   3.47   3.14 
    Annualized net interest margin, fully tax-equivalent (non-GAAP)(1) 3.78   3.73   3.57   3.52   3.18 
    Annualized cost of deposits 2.18   2.08   2.11   2.09   2.10 
    Efficiency ratio (GAAP) 48.58   65.69   62.46   293.86   63.77 
    Adjusted efficiency ratio, fully tax-equivalent (non-GAAP)(1) 57.98   57.73   58.77   59.31   59.95 
    Annualized ratio of total noninterest expenses to average assets (GAAP) 1.85   2.46   2.37   2.63   2.18 
    Annualized ratio of core expenses to average assets (non-GAAP)(1) 2.35   2.30   2.25   2.23   2.08 
              


     For the Quarter Ended
    September 30,    		 For the Nine Months Ended
    September 30,
      2024   2023   2024   2023 
    Average Balances       
    Assets$18,439,910  $20,207,920  $18,924,862  $20,182,808 
    Loans, net of unearned 11,584,999   11,800,064   11,871,358   11,602,741 
    Total deposits 15,148,944   17,507,813   15,583,165   17,567,614 
    Customer deposits 14,347,965   14,699,235   14,642,347   14,778,030 
    Earning assets 16,838,131   18,439,010   17,254,023   18,451,907 
    Interest-bearing liabilities 11,986,220   13,158,631   12,350,640   12,985,665 
    Common equity 1,962,334   1,746,818   1,886,454   1,710,230 
    Total stockholders' equity 2,073,039   1,857,523   1,997,159   1,820,935 
    Tangible common equity (non-GAAP)(1) 1,371,515   1,149,992   1,294,241   1,111,724 
            
    Key Performance Ratios       
    Annualized return on average assets 1.38%  0.94%  1.10%  1.00%
    Adjusted annualized return on average assets (non-GAAP)(1) 1.14   0.98   1.12   1.02 
    Annualized return on average common equity (GAAP) 12.60   10.47   10.59   11.28 
    Adjusted annualized return on average common equity (non-GAAP)(1) 10.27   10.92   10.81   11.60 
    Annualized return on average tangible common equity (non-GAAP)(1) 18.32   16.32   15.77   17.82 
    Adjusted annualized return on average tangible common equity (non-GAAP)(1) 14.98   17.02   16.09   18.31 
    Annualized ratio of net charge-offs/(recoveries) to average loans 0.99   0.12   0.43   0.14 
    Annualized net interest margin (GAAP) 3.73   3.14   3.65   3.23 
    Annualized net interest margin, fully tax-equivalent (non-GAAP)(1) 3.78   3.18   3.69   3.27 
    Annualized cost of deposits 2.18   2.10   2.12   1.76 
    Efficiency ratio (GAAP) 48.58   63.77   58.94   61.86 
    Adjusted efficiency ratio, fully tax-equivalent (non-GAAP)(1) 57.98   59.95   58.16   58.98 
    Annualized ratio of total noninterest expenses to average assets (GAAP) 1.85   2.18   2.23   2.20 
    Annualized ratio of core expenses to average assets (non-GAAP)(1) 2.35   2.08   2.30   2.12 
            
    (1) Refer to "Non-GAAP Measures" in this earnings release for additional information on the usage and presentation of these non-GAAP measures, and refer to these financial tables for the reconciliations to the most directly comparable GAAP measures.


    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
     9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023
    Common Share Data         
    Book value per common share$47.33  $44.74  $43.66  $42.69  $40.20 
    Tangible book value per common share (non-GAAP)(1) 33.57   30.94   29.81   28.77   26.23 
    ASC 320 effect on book value per common share (8.78)  (10.82)  (11.18)  (11.00)  (16.27)
              
    Common shares outstanding, net of treasury stock 42,883,865   42,852,180   42,783,670   42,688,008   42,656,303 
              
    Capital Ratios         
    Common equity to total assets 11.11%  10.19%  9.76%  9.39%  8.52%
    Tangible common equity ratio (non-GAAP)(1) 8.14   7.28   6.88   6.53   5.73 
    Tier 1 leverage ratio 10.77   10.13   9.84   9.44   9.59 
    Common equity tier 1 ratio(2) 12.66   11.68   11.40   10.97   11.37 
    Total risk based capital ratio(2) 16.34   15.32   14.99   14.53   14.90 
              
    Other Selected Trend Information          
    Effective tax rate 24.25%  23.12%  23.17%  27.97%  21.89%
    Full time equivalent employees 1,725   1,843   1,888   1,970   1,965 
              
    Loans Held to Maturity         
    Commercial and industrial$3,503,093  $3,541,239  $3,545,051  $3,652,047  $3,591,809 
    Paycheck Protection Program ("PPP") 1,582   1,864   2,172   2,777   3,750 
    Owner occupied commercial real estate 2,489,697   2,555,964   2,545,033   2,638,175   2,429,659 
    Commercial and business lending 5,994,372   6,099,067   6,092,256   6,292,999   6,025,218 
    Non-owner occupied commercial real estate 2,455,396   2,434,258   2,495,068   2,553,711   2,656,358 
    Real estate construction 1,119,922   1,082,726   1,041,583   1,011,716   1,029,554 
    Commercial real estate lending 3,575,318   3,516,984   3,536,651   3,565,427   3,685,912 
    Total commercial lending 9,569,690   9,616,051   9,628,907   9,858,426   9,711,130 
    Agricultural and agricultural real estate 701,211   802,958   809,876   919,184   842,116 
    Residential mortgage 707,984   733,401   756,021   797,829   813,803 
    Consumer 462,032   455,899   449,837   493,206   505,387 
    Total loans held to maturity$11,440,917  $11,608,309  $11,644,641  $12,068,645  $11,872,436 
              
    Total unfunded loan commitments$3,941,268  $4,381,565  $4,537,718  $4,625,768  $4,813,798 
              
    Deposits          
    Demand-customer$4,009,218  $4,244,169  $4,264,390  $4,500,304  $4,792,813 
    Savings-customer 8,713,228   8,151,794   8,269,956   8,411,240   8,190,430 
    Savings-wholesale and institutional 212,964   318,622   399,265   394,357   564,481 
    Total savings 8,926,192   8,470,416   8,669,221   8,805,597   8,754,911 
    Time-customer 1,628,856   1,737,723   1,734,971   1,944,884   1,814,335 
    Time-wholesale 388,950   504,282   633,584   950,929   1,738,934 
    Total time 2,017,806   2,242,005   2,368,555   2,895,813   3,553,269 
    Total deposits $14,953,216  $14,956,590  $15,302,166  $16,201,714  $17,100,993 
              
    Total customer deposits$14,351,302  $14,133,686  $14,269,317  $14,856,428  $14,797,578 
    Total wholesale and institutional deposits 601,914   822,904   1,032,849   1,345,286   2,303,415 
    Total deposits$14,953,216  $14,956,590  $15,302,166  $16,201,714  $17,100,993 
              
    (1) Refer to "Non-GAAP Measures" in this earnings release for additional information on the usage and presentation of these non-GAAP measures, and refer to these financial tables for the reconciliations to the most directly comparable GAAP measures.
    (2) September 30, 2024 calculation is preliminary.


    HEARTLAND FINANCIAL USA, INC.
    CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
    DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
     As of and for the Quarter Ended
     9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023
    Allowance for Credit Losses-Loans         
    Balance, beginning of period$126,861  $123,934  $122,566  $110,208  $111,198 
    Provision for credit losses 8,871   9,737   3,668   12,750   2,672 
    Charge-offs (32,137)  (7,388)  (4,093)  (3,886)  (3,964)
    Recoveries 3,202   578   1,793   3,494   302 
    Balance, end of period$106,797  $126,861  $123,934  $122,566  $110,208 
              
    Allowance for Unfunded Commitments         
    Balance, beginning of period$13,057  $13,786  $16,468  $17,480  $18,636 
    Provision for credit losses (2,595)  (729)  (2,682)  (1,012)  (1,156)
    Balance, end of period$10,462  $13,057  $13,786  $16,468  $17,480 
              
    Allowance for lending related credit losses$117,259  $139,918  $137,720  $139,034  $127,688 
              
    Provision for Credit Losses         
    Provision for credit losses-loans$8,871  $9,737  $3,668  $12,750  $2,672 
    Provision for credit losses-unfunded commitments (2,595)  (729)  (2,682)  (1,012)  (1,156)
    Total provision (benefit) for credit losses$6,276  $9,008  $986  $11,738  $1,516 
              
    Asset Quality         
    Nonaccrual loans$69,115  $103,123  $94,800  $95,426  $51,304 
    Loans past due ninety days or more 832   663   611   2,507   511 
    Other real estate owned 6,805   7,533   2,590   12,548   14,362 
    Other repossessed assets —   —   —   —   1 
    Total nonperforming assets$76,752  $111,319  $98,001  $110,481  $66,178 
              
    Nonperforming Assets Activity          
    Balance, beginning of period$111,319  $98,001  $110,481  $66,178  $66,097 
    Net loan (charge-offs) recoveries (28,935)  (6,810)  (2,300)  (392)  (3,662)
    New nonperforming loans 25,441   48,346   5,470   61,193   19,295 
    Reduction of nonperforming loans(1) (30,240)  (28,050)  (5,692)  (14,278)  (14,691)
    OREO/Repossessed assets sales proceeds (833)  (168)  (9,958)  (2,220)  (861)
    Balance, end of period$76,752  $111,319  $98,001  $110,481  $66,178 
              
    Asset Quality Ratios         
    Ratio of nonperforming loans to total loans 0.61%  0.89%  0.82%  0.81%  0.44%
    Ratio of nonperforming assets to total assets 0.42   0.59   0.51   0.57   0.33 
    Annualized ratio of net loan charge-offs (recoveries) to average loans 0.99   0.23   0.08   0.01   0.12 
    Allowance for loan credit losses as a percent of loans 0.93   1.09   1.06   1.02   0.93 
    Allowance for lending related credit losses as a percent of loans 1.02   1.21   1.18   1.15   1.08 
    Allowance for loan credit losses as a percent of nonperforming loans 152.68   122.23   129.89   125.15   212.70 
    Loans delinquent 30-89 days as a percent of total loans 0.26   0.25   0.31   0.09   0.12 
              
    (1) Includes principal reductions, transfers to performing status and transfers to OREO.


    HEARTLAND FINANCIAL USA, INC.  
    CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
    DOLLARS IN THOUSANDS
     For the Quarter Ended
     September 30, 2024 June 30, 2024 September 30, 2023
     Average
    Balance    		 Interest Rate Average
    Balance    		 Interest Rate Average
    Balance    		 Interest Rate
    Earning Assets                 
    Securities:                 
    Taxable$4,254,529  $51,116 4.78% $4,490,407  $47,381 4.24% $5,726,057  $54,800 3.80%
    Nontaxable(1) 768,483   7,313 3.79   759,234   7,383 3.91   881,162   8,085 3.64 
    Total securities 5,023,012   58,429 4.63   5,249,641   54,764 4.20   6,607,219   62,885 3.78 
    Interest on deposits with other banks and
    short-term investments    		 355,394   4,193 4.69   194,824   3,045 6.29   142,301   1,651 4.60 
    Federal funds sold —   — —   —   — —   152   3 7.83 
    Loans:(2)                 
    Commercial and industrial(1) 3,531,206   65,972 7.43   3,638,004   69,469 7.68   3,610,677   63,001 6.92 
    PPP loans 1,759   5 1.13   2,242   7 1.26   3,948   11 1.11 
    Owner occupied commercial real estate 2,527,006   35,189 5.54   2,615,504   37,028 5.69   2,412,501   30,127 4.95 
    Non-owner occupied commercial real estate 2,474,036   39,536 6.36   2,519,346   39,272 6.27   2,586,011   38,779 5.95 
    Real estate construction 1,106,387   22,878 8.23   1,093,399   21,770 8.01   1,027,544   19,448 7.51 
    Agricultural and agricultural real estate 757,745   11,536 6.06   879,707   13,390 6.12   822,957   12,582 6.07 
    Residential real estate 725,901   9,110 4.99   776,821   9,454 4.89   827,402   9,482 4.55 
    Consumer 460,959   8,956 7.73   485,266   9,421 7.81   509,024   9,615 7.49 
    Less: allowance for credit losses (125,274)  — —   (123,319)  — —   (110,726)  — — 
    Net loans 11,459,725   193,182 6.71   11,886,970   199,811 6.76   11,689,338   183,045 6.21 
    Total earning assets 16,838,131   255,804 6.04%  17,331,435   257,620 5.98%  18,439,010   247,584 5.33%
    Nonearning Assets 1,601,779       1,711,927       1,768,910     
    Total Assets$18,439,910      $19,043,362      $20,207,920     
    Interest-bearing Liabilities                 
    Savings$8,842,494  $59,307 2.67% $8,834,746  $55,440 2.52% $8,737,581  $49,195 2.23%
    Time deposits 2,189,861   23,669 4.30   2,372,653   25,059 4.25   3,945,371   43,549 4.38 
    Borrowings 580,707   7,378 5.05   881,738   10,825 4.94   103,567   1,167 4.47 
    Term debt 373,158   5,543 5.91   372,820   5,564 6.00   372,112   5,765 6.15 
    Total interest-bearing liabilities 11,986,220   95,897 3.18%  12,461,957   96,888 3.13%  13,158,631   99,676 3.01%
    Noninterest-bearing Liabilities                 
    Noninterest-bearing deposits 4,116,589       4,355,521       4,824,861     
    Accrued interest and other liabilities 264,062       251,943       366,905     
    Total noninterest-bearing liabilities 4,380,651       4,607,464       5,191,766     
    Stockholders' Equity 2,073,039       1,973,941       1,857,523     
    Total Liabilities and Stockholders' Equity$18,439,910      $19,043,362      $20,207,920     
    Net interest income, fully tax-equivalent
    (non-GAAP)    (1)(3)    		  $159,907     $160,732     $147,908  
    Net interest spread(1)    2.86%     2.85%     2.32%
    Net interest income, fully tax-equivalent
    (non-GAAP    )(1)(3) to total earning assets    		    3.78%     3.73%     3.18%
    Interest-bearing liabilities to earning assets 71.18%      71.90%      71.36%    
                      
    (1) Computed on a tax-equivalent basis using an effective tax rate of 21%.  
    (2) Nonaccrual loans and loans held for sale are included in the average loans outstanding.
    (3) Refer to "Non-GAAP Measures" in this earnings release for additional information on the usage and presentation of these non-GAAP measures, and refer to these financial tables for the reconciliations to the most directly comparable GAAP measures.


    HEARTLAND FINANCIAL USA, INC.
    CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
    DOLLARS IN THOUSANDS
     For the Nine Months Ended
     September 30, 2024 September 30, 2023
     Average
    Balance    		 Interest Rate Average
    Balance    		 Interest Rate
    Earning Assets           
    Securities:           
    Taxable$4,469,258  $145,511 4.35% $5,927,026  $168,948 3.81%
    Nontaxable(1) 768,782   22,079 3.84   899,613   23,611 3.51 
    Total securities 5,238,040   167,590 4.27   6,826,639   192,559 3.77 
    Interest on deposits with other banks and other short-term investments 268,122   10,244 5.10   133,910   4,833 4.83 
    Federal funds sold —   — —   51   3 7.86 
    Loans:(2)           
    Commercial and industrial(1) 3,603,668   202,426 7.50   3,547,256   169,552 6.39 
    PPP loans 2,195   19 1.16   6,718   61 1.21 
    Owner occupied commercial real estate 2,583,886   107,734 5.57   2,355,545   84,927 4.82 
    Non-owner occupied commercial real estate 2,514,452   118,657 6.30   2,459,965   105,111 5.71 
    Real estate construction 1,087,280   65,497 8.05   1,051,298   56,107 7.14 
    Agricultural and agricultural real estate 838,395   38,682 6.16   835,673   36,191 5.79 
    Residential mortgage 764,515   28,699 5.01   840,143   28,138 4.48 
    Consumer 476,967   27,578 7.72   506,143   26,925 7.11 
    Less: allowance for credit losses-loans (123,497)  — —   (111,434)  — — 
    Net loans 11,747,861   589,292 6.70   11,491,307   507,012 5.90 
    Total earning assets 17,254,023   767,126 5.94%  18,451,907   704,407 5.10%
    Nonearning Assets 1,670,839       1,730,901     
    Total Assets$18,924,862      $20,182,808     
    Interest-bearing Liabilities           
    Savings$8,828,973  $169,414 2.56% $9,130,980  $128,372 1.88%
    Time deposits 2,447,293   78,195 4.27   3,344,434   103,245 4.13 
    Borrowings 701,548   25,727 4.90   138,157   4,437 4.29 
    Term debt 372,826   16,956 6.08   372,094   16,756 6.02 
    Total interest-bearing liabilities 12,350,640   290,292 3.14%  12,985,665   252,810 2.60%
    Noninterest-bearing Liabilities           
    Noninterest-bearing deposits 4,306,899       5,092,200     
    Accrued interest and other liabilities 270,164       284,008     
    Total noninterest-bearing liabilities 4,577,063       5,376,208     
    Stockholders' Equity 1,997,159       1,820,935     
    Total Liabilities and Stockholders' Equity$18,924,862      $20,182,808     
    Net interest income, fully tax-equivalent (non-GAAP)(1)(3)  $476,834     $451,597  
    Net interest spread(1)    2.80%     2.50%
    Net interest income, fully tax-equivalent (non-GAAP)(1)(3) to total earning assets    3.69%     3.27%
    Interest-bearing liabilities to earning assets 71.58%      70.38%    
                
    (1) Computed on a tax-equivalent basis using an effective tax rate of 21%.  
    (2) Nonaccrual loans and loans held for sale are included in the average loans outstanding.
    (3) Refer to "Non-GAAP Measures" in this earnings release for additional information on the usage and presentation of these non-GAAP measures, and refer to these financial tables for the reconciliations to the most directly comparable GAAP measures.


    HEARTLAND FINANCIAL USA, INC.
    CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
    DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA AND FULL TIME EQUIVALENT EMPLOYEE DATA
     For the Quarter Ended
     9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023
    Reconciliation of Annualized Return on Average Tangible Common Equity (non-GAAP)         
    Earnings available to common stockholders (GAAP)$62,140  $37,730  $49,694  $(72,375) $46,078 
    Plus core deposit intangibles amortization, net of tax(2) 1,022   1,081   1,131   1,229   1,240 
    Earnings available to common stockholders excluding intangible amortization (non-GAAP)$63,162  $38,811  $50,825  $(71,146) $47,318 
              
    Average common equity (GAAP)$1,962,334  $1,863,236  $1,832,959  $1,729,086  $1,746,818 
    Less average goodwill 576,005   576,005   576,005   576,005   576,005 
    Less average core deposit intangibles, net 14,814   16,185   17,641   19,193   20,821 
    Average tangible common equity (non-GAAP)$1,371,515  $1,271,046  $1,239,313  $1,133,888  $1,149,992 
    Annualized return on average common equity (GAAP) 12.60%  8.14%  10.90% (16.61)%  10.47%
    Annualized return on average tangible common equity (non-GAAP) 18.32%  12.28%  16.49% (24.89)%  16.32%
              
    Reconciliation of Annualized Net Interest Margin, Fully Tax-Equivalent (non-GAAP)         
    Net Interest Income (GAAP)$157,897  $158,741  $154,215  $156,137  $145,756 
    Plus tax-equivalent adjustment(1) 2,010   1,991   1,981   2,058   2,152 
    Net interest income, fully tax-equivalent (non-GAAP)$159,907  $160,732  $156,196  $158,195  $147,908 
              
    Average earning assets$16,838,131  $17,331,435  $17,597,068  $17,853,957  $18,439,010 
              
    Annualized net interest margin (GAAP) 3.73%  3.68%  3.52%  3.47%  3.14%
    Annualized net interest margin, fully tax-equivalent (non-GAAP) 3.78   3.73   3.57   3.52   3.18 
    Net purchase accounting discount amortization on loans included in annualized net interest margin 0.02   0.01   0.02   0.02   0.01 


    Reconciliation of Tangible Book Value Per Common Share (non-GAAP)         
    Common equity (GAAP)$2,029,668  $1,917,145  $1,868,128  $1,822,412  $1,714,825 
    Less goodwill 576,005   576,005   576,005   576,005   576,005 
    Less core deposit intangibles, net 14,157   15,501   16,923   18,415   20,026 
    Tangible common equity (non-GAAP)$1,439,506  $1,325,639  $1,275,200  $1,227,992  $1,118,794 
              
    Common shares outstanding, net of treasury stock 42,883,865   42,852,180   42,783,670   42,688,008   42,656,303 
    Common equity (book value) per share (GAAP)$47.33  $44.74  $43.66  $42.69  $40.20 
    Tangible book value per common share (non-GAAP)$33.57  $30.94  $29.81  $28.77  $26.23 
              
    Reconciliation of Tangible Common Equity Ratio (non-GAAP)         
    Tangible common equity (non-GAAP)$1,439,506  $1,325,639  $1,275,200  $1,227,992  $1,118,794 
              
    Total assets (GAAP)$18,272,293  $18,812,670  $19,132,827  $19,411,707  $20,129,793 
    Less goodwill 576,005   576,005   576,005   576,005   576,005 
    Less core deposit intangibles, net 14,157   15,501   16,923   18,415   20,026 
    Total tangible assets (non-GAAP)$17,682,131  $18,221,164  $18,539,899  $18,817,287  $19,533,762 
    Tangible common equity ratio (non-GAAP) 8.14%  7.28%  6.88%  6.53%  5.73%
              
    (1) Computed on a tax-equivalent basis using an effective tax rate of 21%.
    (2) Tax effect is calculated based on the respective periods’ year-to-date effective tax rate excluding the impact of discrete items.


    HEARTLAND FINANCIAL USA, INC.
    CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
    DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
     For the Quarter Ended
    9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023
    Reconciliation of Adjusted Efficiency Ratio, fully tax-equivalent (non-GAAP) 
    Net interest income (GAAP)$157,897  $158,741  $154,215  $156,137  $145,756 
    Tax-equivalent adjustment(1) 2,010   1,991   1,981   2,058   2,152 
    Fully tax-equivalent net interest income 159,907   160,732   156,196   158,195   147,908 
    Noninterest income 18,992   18,207   27,663   (111,801)  28,383 
    Securities (gains)/losses, net 9,520   10,111   (58)  140,007   114 
    Unrealized gain on equity securities, net (377)  (133)  (95)  (75)  (13)
    Adjusted revenue (non-GAAP)$188,042  $188,917  $183,706  $186,326  $176,392 
              
    Total noninterest expenses (GAAP)$85,927  $116,244  $113,595  $130,285  $111,053 
    Less:         
    Core deposit intangibles amortization 1,345   1,421   1,492   1,611   1,625 
    Partnership investment in tax credit projects 222   222   494   3,573   1,136 
    (Gain) loss on sales/valuation of assets, net (26,419)  193   214   2,072   108 
    Acquisition, integration and restructuring costs 2,026   5,973   1,375   4,365   2,429 
    FDIC special assessment (267)  (631)  2,049   8,145   — 
    Core expenses (non-GAAP)$109,020  $109,066  $107,971  $110,519  $105,755 
              
    Efficiency ratio (GAAP) 48.58%  65.69%  62.46%  293.86%  63.77%
    Adjusted efficiency ratio, fully tax-equivalent (non-GAAP) 57.98%  57.73%  58.77%  59.31%  59.95%
              
    Reconciliation of Annualized Ratio of Core Expenses to Average Assets (non-GAAP)         
    Total noninterest expenses (GAAP)$85,927  $116,244  $113,595  $130,285  $111,053 
    Core expenses (non-GAAP) 109,020   109,066   107,971   110,519   105,755 
              
    Average assets$18,439,910  $19,043,362  $19,296,638  $19,667,825  $20,207,920 
    Total noninterest expenses to average assets (GAAP) 1.85%  2.46%  2.37%  2.63%  2.18%
    Core expenses to average assets (non-GAAP) 2.35%  2.30%  2.25%  2.23%  2.08%
              
    Acquisition, integration and restructuring costs         
    Salaries and employee benefits$58  $462  $168  $1,425  $94 
    Occupancy —   —   —   1,092   — 
    Furniture and equipment 52   53   —   19   — 
    Professional fees 1,674   5,385   931   793   1,617 
    Advertising —   —   —   28   178 
    Other noninterest expenses 242   73   276   1,008   540 
    Total acquisition, integration and restructuring costs$2,026  $5,973  $1,375  $4,365  $2,429 
              
    (1) Computed on a tax-equivalent basis using an effective tax rate of 21%.
     
    HEARTLAND FINANCIAL USA, INC.
    CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
    DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
     For the Quarter Ended
     9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023
    Reconciliation of Adjusted Earnings         
    Net income/(loss)$64,153  $39,742  $51,707  $(70,363) $48,091 
    (Gain)/loss from sale of securities 9,520   10,111   (58)  140,007   114 
    (Gain)/loss on sales/valuation of assets, net (26,419)  193   214   2,072   108 
    Acquisition, integration and restructuring costs 2,026   5,973   1,375   4,365   2,429 
    FDIC special assessment (267)  (631)  2,049   8,145   — 
    Total adjustments (15,140)  15,646   3,580   154,589   2,651 
    Tax effect of adjustments(2) 3,634   (3,739)  (866)  (36,638)  (628)
    Adjusted earnings$52,647  $51,649  $54,421  $47,588  $50,114 
              
    Preferred dividends (2,013)  (2,012)  (2,013)  (2,012)  (2,013)
    Adjusted earnings available to common stockholders$50,634  $49,637  $52,408  $45,576  $48,101 
              
    Plus core deposit intangibles amortization, net of tax(2) 1,022   1,081   1,131   1,229   1,240 
    Earnings available to common stockholders excluding intangible amortization (non-GAAP)$51,656  $50,718  $53,539  $46,805  $49,341 
              
    Reconciliation of Adjusted Annualized Return on Average Assets         
    Average assets$18,439,910  $19,043,362  $19,296,638  $19,667,825  $20,207,920 
    Adjusted annualized return on average assets (non-GAAP) 1.14%  1.09%  1.13%  0.96%  0.98%
              
    Reconciliation of Adjusted Annualized Return on Average Common Equity         
    Average common stockholders' equity (GAAP)$1,962,334  $1,863,236  $1,832,959  $1,729,086  $1,746,818 
    Adjusted annualized average common equity (non-GAAP) 10.27%  10.71%  11.50%  10.46%  10.92%
              
    Reconciliation of Adjusted Annualized Return on Average Tangible Common Equity         
    Average tangible common equity (non-GAAP)$1,371,515  $1,271,046  $1,239,313  $1,133,888  $1,149,992 
    Adjusted annualized average tangible common equity (non-GAAP) 14.98%  16.05%  17.38%  16.38%  17.02%
              
    Reconciliation of Adjusted Diluted Earnings Per Common Share         
    Weighted average shares outstanding-diluted 43,195,257   43,060,354   42,915,768   42,838,405   42,812,563 
    Adjusted diluted earnings per common share$1.17  $1.15  $1.22  $1.06  $1.12 
              
    (2) Tax effect is calculated based on the respective periods’ year-to-date effective tax rate excluding the impact of discrete items.


    HEARTLAND FINANCIAL USA, INC.
    CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
    DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
     For the Quarter Ended
    September 30,    		 For the Nine Months Ended
    September 30,
      2024   2023   2024   2023 
    Reconciliation of Annualized Return on Average Tangible Common Equity (non-GAAP)       
    Earnings available to common stockholders (GAAP)$62,140  $46,078  $149,564  $144,245 
    Plus core deposit intangibles amortization, net of tax(2) 1,022   1,240   3,236   3,908 
    Earnings available to common stockholders excluding intangible amortization (non-GAAP)$63,162  $47,318  $152,800  $148,153 
            
    Average common equity (GAAP)$1,962,334  $1,746,818  $1,886,454  $1,710,230 
    Less average goodwill 576,005   576,005   576,005   576,005 
    Less average core deposit intangibles, net 14,814   20,821   16,208   22,501 
    Average tangible common equity (non-GAAP)$1,371,515  $1,149,992  $1,294,241  $1,111,724 
    Annualized return on average common equity (GAAP) 12.60%  10.47%  10.59%  11.28%
    Annualized return on average tangible common equity (non-GAAP) 18.32%  16.32%  15.77%  17.82%
            
    Reconciliation of Annualized Net Interest Margin, Fully Tax-Equivalent (non-GAAP)       
    Net Interest Income (GAAP)$157,897  $145,756  $470,853  $445,100 
    Plus tax-equivalent adjustment(1) 2,010   2,152   5,981   6,497 
    Net interest income, fully tax-equivalent (non-GAAP)$159,907  $147,908  $476,834  $451,597 
            
    Average earning assets$16,838,131  $18,439,010  $17,254,023  $18,451,907 
            
    Annualized net interest margin (GAAP) 3.73%  3.14%  3.65%  3.23%
    Annualized net interest margin, fully tax-equivalent (non-GAAP) 3.78   3.18   3.69   3.27 
    Net purchase accounting discount amortization on loans included in annualized net interest margin 0.02   0.01   0.02   0.02 
            
    (1) Computed on a tax-equivalent basis using an effective tax rate of 21%.
    (2) Tax effect is calculated based on the respective periods’ year-to-date effective tax rate excluding the impact of discrete items.


    HEARTLAND FINANCIAL USA, INC.
    CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
    DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
     For the Quarter Ended
    September 30,    		 For the Nine Months Ended
    September 30,
     2024   2023   2024   2023 
    Reconciliation of Adjusted Efficiency Ratio, Fully Tax-Equivalent (non-GAAP)       
    Net interest income (GAAP)$157,897  $145,756  $470,853  $445,100 
    Tax-equivalent adjustment(1) 2,010   2,152   5,981   6,497 
    Fully tax-equivalent net interest income 159,907   147,908   476,834   451,597 
    Noninterest income (GAAP) 18,992   28,383   64,862   90,875 
    Securities (gains)/losses, net 9,520   114   19,573   1,532 
    Unrealized gain on equity securities, net (377)  (13)  (605)  (165)
    Adjusted revenue (non-GAAP)$188,042  $176,392  $560,664  $543,839 
            
    Total noninterest expenses (GAAP)$85,927  $111,053  $315,766  $331,542 
    Less:       
    Core deposit intangibles amortization 1,345   1,625   4,258   5,128 
    Partnership investment in tax credit projects 222   1,136   938   1,828 
    (Gain)/loss on sales/valuation of assets, net (26,419)  108   (26,012)  (2,149)
    Acquisition, integration and restructuring costs 2,026   2,429   9,374   5,994 
    FDIC special assessment (267)  —   1,151   — 
    Core expenses (non-GAAP)$109,020  $105,755  $326,057  $320,741 
            
    Efficiency ratio (GAAP) 48.58%  63.77%  58.94%  61.86%
    Adjusted efficiency ratio, fully tax-equivalent (non-GAAP) 57.98%  59.95%  58.16%  58.98%
            
    Reconciliation of Annualized Ratio of Core Expenses to Average Assets (non-GAAP)       
    Total noninterest expenses (GAAP)$85,927  $111,053  $315,766  $331,542 
    Core expenses (non-GAAP) 109,020   105,755   326,057   320,741 
            
    Average assets$18,439,910  $20,207,920  $18,924,862  $20,182,808 
    Total noninterest expenses to average assets (GAAP) 1.85%  2.18%  2.23%  2.20%
    Core expenses to average assets (non-GAAP) 2.35%  2.08%  2.30%  2.12%
            
    Acquisition, integration and restructuring costs       
    Salaries and employee benefits$58  $94  $689  $261 
    Occupancy —   —   —   — 
    Furniture and equipment 52   —   105   — 
    Professional fees 1,674   1,617   7,990   3,619 
    Advertising —   178   —   522 
    Other noninterest expenses 242   540   590   1,592 
    Total acquisition, integration and restructuring costs$2,026  $2,429  $9,374  $5,994 
            
    (1) Computed on a tax-equivalent basis using an effective tax rate of 21%.       


    HEARTLAND FINANCIAL USA, INC.
    CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
    DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
     For the Quarter Ended
    September 30,    		 For the Nine Months Ended
    September 30,
      2024   2023   2024   2023 
    Reconciliation of Adjusted Earnings (non-GAAP)       
    Net income/(loss)$64,153  $48,091  $155,602  $150,283 
    (Gain)/loss from sale of securities 9,520   114   19,573   1,532 
    (Gain)/loss on sales/valuation of assets, net (26,419)  108   (26,012)  (2,149)
    Acquisition, integration and restructuring costs 2,026   2,429   9,374   5,994 
    FDIC special assessment (267)  —   1,151   — 
    Total adjustments (15,140)  2,651   4,086   5,377 
    Tax effect of adjustments(2) 3,634   (628)  (981)  (1,280)
    Adjusted earnings$52,647  $50,114  $158,707  $154,380 
            
    Preferred dividends (2,013)  (2,013)  (6,038)  (6,038)
    Adjusted earnings available to common stockholders$50,634  $48,101  $152,669  $148,342 
            
    Plus core deposit intangibles amortization, net of tax(2) 1,022   1,240   3,236   3,908 
    Earnings available to common stockholders excluding intangible amortization (non-GAAP)$51,656  $49,341  $155,905  $152,250 
            
    Reconciliation of Adjusted Annualized Return on Average Assets       
    Average assets$18,439,910  $20,207,920  $18,924,862  $20,182,808 
    Adjusted annualized return on average assets (non-GAAP) 1.14%  0.98%  1.12%  1.02%
            
    Reconciliation of Adjusted Annualized Return on Average Common Equity       
    Average common stockholders' equity (GAAP)$1,962,334  $1,746,818  $1,886,454  $1,710,230 
    Adjusted annualized return on average common equity (non-GAAP) 10.27%  10.92%  10.81%  11.60%
            
    Reconciliation of Adjusted Annualized Return on Average Tangible Common Equity       
    Average tangible common equity (non-GAAP)$1,371,515  $1,149,992  $1,294,241  $1,111,724 
    Adjusted annualized return on average tangible common equity (non-GAAP) 14.98%  17.02%  16.09%  18.31%
            
    Reconciliation of Adjusted Diluted Earnings Per Common Share       
    Weighted average shares outstanding-diluted 43,195,257   42,812,563   43,080,422   42,769,872 
    Adjusted diluted earnings per common share$1.17  $1.12  $3.54  $3.47 
            
    (2) Tax effect is calculated based on the respective periods’ year-to-date effective tax rate excluding the impact of discrete items.

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