CONTACT: | FOR IMMEDIATE RELEASE |
Bryan R. McKeag | July 26, 2021 |
Executive Vice President | |
Chief Financial Officer | |
(563) 589-1994 | |
BMcKeag@htlf.com |
§ | Net income available to common stockholders of $59.6 million compared to $30.1 million for the second quarter of 2020, an increase of $29.5 million or 98% |
§ | Net income available to common stockholders of $110.4 million compared to $50.2 million for the six months ended June 30, 2020, an increase of $60.2 million or 120% |
§ | Diluted earnings per common share of $1.41 compared to $0.82 for the second quarter of the prior year, an increase of $0.59 or 72% |
§ | Quarterly loan growth was $287.7 million or 13% annualized, exclusive of Paycheck Protection Program ('PPP') loans |
§ | Non-time deposit growth of $133.3 million or 1% for the second quarter of 2021 and $780.0 million or 6% for the six months ended June 30, 2021 |
§ | Annualized net charge off ratio of 0.12%, nonperforming assets to total assets of 0.50%, and 30-89 day loan delinquencies of 0.17% |
§ | Announced a 14% increase in the regular quarterly dividend to $0.25 per common share |
Quarter Ended June 30, | Six Months Ended June 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Net income available to common stockholders (in millions) | $ | 59.6 | $ | 30.1 | $ | 110.4 | $ | 50.2 |
Diluted earnings per common share | 1.41 | 0.82 | 2.61 | 1.36 | ||||
Return on average assets | 1.35 | % | 0.84 | % | 1.27 | % | 0.73 | % |
Return on average common equity | 12.07 | 7.69 | 11.29 | 6.32 | ||||
Return on average tangible common equity (non-GAAP)(1)
| 18.05 | 11.97 | 16.99 | 9.95 | ||||
Net interest margin | 3.37 | 3.81 | 3.40 | 3.81 | ||||
Net interest margin, fully tax-equivalent (non-GAAP)(1)
| 3.41 | 3.85 | 3.45 | 3.85 | ||||
Efficiency ratio, fully-tax equivalent (non-GAAP)(1)
| 57.11 | 55.75 | 56.86 | 58.64 |
'HTLF's second quarter 2021 financial performance was strong. Net income available to common stockholders totaled $59.6 million, which was a 98% increase over the same quarter last year. Loan growth, excluding PPP loans, non-time deposit growth and improved credit quality all contributed to our success this quarter.' |
Bruce K. Lee, president and chief executive officer, HTLF |
HEARTLAND FINANCIAL USA, INC. | ||||||||
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) | ||||||||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | ||||||||
For the Quarter Ended June 30, |
For the Six Months Ended June 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Interest Income | ||||||||
Interest and fees on loans | $ | 111,915 | $ | 107,005 | $ | 224,354 | $ | 213,419 |
Interest on securities: | ||||||||
Taxable | 31,546 | 23,362 | 61,989 | 45,093 | ||||
Nontaxable | 4,561 | 3,344 | 9,064 | 5,527 | ||||
Interest on federal funds sold | - | - | 1 | - | ||||
Interest on deposits with other banks and short-term investments | 60 | 54 | 126 | 775 | ||||
Total Interest Income | 148,082 | 133,765 | 295,534 | 264,814 | ||||
Interest Expense | ||||||||
Interest on deposits | 3,790 | 6,134 | 8,185 | 20,716 | ||||
Interest on short-term borrowings | 98 | 61 | 250 | 357 | ||||
Interest on other borrowings | 2,976 | 3,424 | 6,276 | 7,084 | ||||
Total Interest Expense | 6,864 | 9,619 | 14,711 | 28,157 | ||||
Net Interest Income | 141,218 | 124,146 | 280,823 | 236,657 | ||||
Provision (benefit) for credit losses | (7,080) | 26,796 | (7,728) | 48,316 | ||||
Net Interest Income After Provision for Credit Losses | 148,298 | 97,350 | 288,551 | 188,341 | ||||
Noninterest Income | ||||||||
Service charges and fees | 15,132 | 10,972 | 28,803 | 22,993 | ||||
Loan servicing income | 873 | 379 | 1,711 | 1,342 | ||||
Trust fees | 6,039 | 4,977 | 11,816 | 9,999 | ||||
Brokerage and insurance commissions | 865 | 595 | 1,718 | 1,328 | ||||
Securities gains/(losses), net | 2,842 | 2,006 | 2,812 | 3,664 | ||||
Unrealized gain/ (loss) on equity securities, net | 83 | 680 | (27) | 449 | ||||
Net gains on sale of loans held for sale | 4,753 | 7,857 | 11,173 | 12,517 | ||||
Valuation adjustment on servicing rights | (526) | 9 | 391 | (1,556) | ||||
Income on bank owned life insurance | 937 | 1,167 | 1,766 | 1,665 | ||||
Other noninterest income | 2,166 | 1,995 | 3,318 | 4,053 | ||||
Total Noninterest Income | 33,164 | 30,637 | 63,481 | 56,454 | ||||
Noninterest Expense | ||||||||
Salaries and employee benefits | 57,332 | 50,118 | 116,394 | 100,075 | ||||
Occupancy | 7,399 | 6,502 | 15,317 | 12,973 | ||||
Furniture and equipment | 3,501 | 2,993 | 6,594 | 6,101 | ||||
Professional fees | 16,237 | 13,676 | 29,727 | 26,149 | ||||
Advertising | 1,649 | 995 | 3,118 | 3,200 | ||||
Core deposit and customer relationship intangibles amortization | 2,415 | 2,696 | 4,931 | 5,677 | ||||
Other real estate and loan collection expenses, net | 414 | 203 | 549 | 537 | ||||
Loss on sales/valuations of assets, net | 183 | 701 | 377 | 717 | ||||
Acquisition, integration and restructuring costs | 210 | 673 | 3,138 | 2,049 | ||||
Partnership investment in tax credit projects | 1,345 | 791 | 1,380 | 975 | ||||
Other noninterest expenses | 12,691 | 11,091 | 24,274 | 22,845 | ||||
Total Noninterest Expense | 103,376 | 90,439 | 205,799 | 181,298 | ||||
Income Before Income Taxes | 78,086 | 37,548 | 146,233 | 63,497 | ||||
Income taxes | 16,481 | 7,417 | 31,814 | 13,326 | ||||
Net Income | 61,605 | 30,131 | 114,419 | 50,171 | ||||
Preferred dividends | (2,012) | - | (4,025) | - | ||||
Net Income Available to Common Stockholders | $ | 59,593 | $ | 30,131 | $ | 110,394 | $ | 50,171 |
Earnings per common share-diluted | $ | 1.41 | $ | 0.82 | $ | 2.61 | $ | 1.36 |
Weighted average shares outstanding-diluted | 42,359,873 | 36,915,630 | 42,357,133 | 36,919,555 |
HEARTLAND FINANCIAL USA, INC. | ||||||||||
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) | ||||||||||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | ||||||||||
For the Quarter Ended | ||||||||||
6/30/2021 | 3/31/2021 | 12/31/2020 | 9/30/2020 | 6/30/2020 | ||||||
Interest Income | ||||||||||
Interest and fees on loans | $ | 111,915 | $ | 112,439 | $ | 108,865 | $ | 102,657 | $ | 107,005 |
Interest on securities: | ||||||||||
Taxable | 31,546 | 30,443 | 28,154 | 25,016 | 23,362 | |||||
Nontaxable | 4,561 | 4,503 | 3,735 | 3,222 | 3,344 | |||||
Interest on federal funds sold | - | 1 | - | - | - | |||||
Interest on deposits with other banks and short-term investments | 60 | 66 | 77 | 72 | 54 | |||||
Total Interest Income | 148,082 | 147,452 | 140,831 | 130,967 | 133,765 | |||||
Interest Expense | ||||||||||
Interest on deposits | 3,790 | 4,395 | 4,609 | 4,962 | 6,134 | |||||
Interest on short-term borrowings | 98 | 152 | 175 | 78 | 61 | |||||
Interest on other borrowings | 2,976 | 3,300 | 3,472 | 3,430 | 3,424 | |||||
Total Interest Expense | 6,864 | 7,847 | 8,256 | 8,470 | 9,619 | |||||
Net Interest Income | 141,218 | 139,605 | 132,575 | 122,497 | 124,146 | |||||
Provision (benefit) for credit losses | (7,080) | (648) | 17,072 | 1,678 | 26,796 | |||||
Net Interest Income After Provision for Credit Losses | 148,298 | 140,253 | 115,503 | 120,819 | 97,350 | |||||
Noninterest Income | ||||||||||
Service charges and fees | 15,132 | 13,671 | 12,725 | 11,749 | 10,972 | |||||
Loan servicing income | 873 | 838 | 997 | 638 | 379 | |||||
Trust fees | 6,039 | 5,777 | 5,506 | 5,357 | 4,977 | |||||
Brokerage and insurance commissions | 865 | 853 | 779 | 649 | 595 | |||||
Securities gains/(losses), net | 2,842 | (30) | 2,829 | 1,300 | 2,006 | |||||
Unrealized gain/ (loss) on equity securities, net | 83 | (110) | 36 | 155 | 680 | |||||
Net gains on sale of loans held for sale | 4,753 | 6,420 | 7,104 | 8,894 | 7,857 | |||||
Valuation adjustment on servicing rights | (526) | 917 | (102) | (120) | 9 | |||||
Income on bank owned life insurance | 937 | 829 | 1,021 | 868 | 1,167 | |||||
Other noninterest income | 2,166 | 1,152 | 1,726 | 1,726 | 1,995 | |||||
Total Noninterest Income | 33,164 | 30,317 | 32,621 | 31,216 | 30,637 | |||||
Noninterest Expense | ||||||||||
Salaries and employee benefits | 57,332 | 59,062 | 51,615 | 50,978 | 50,118 | |||||
Occupancy | 7,399 | 7,918 | 6,849 | 6,732 | 6,502 | |||||
Furniture and equipment | 3,501 | 3,093 | 3,913 | 2,500 | 2,993 | |||||
Professional fees | 16,237 | 13,490 | 15,117 | 12,802 | 13,676 | |||||
Advertising | 1,649 | 1,469 | 1,107 | 928 | 995 | |||||
Core deposit and customer relationship intangibles amortization | 2,415 | 2,516 | 2,501 | 2,492 | 2,696 | |||||
Other real estate and loan collection expenses, net | 414 | 135 | 468 | 335 | 203 | |||||
Loss on sales/valuations of assets, net | 183 | 194 | 2,621 | 1,763 | 701 | |||||
Acquisition, integration and restructuring costs | 210 | 2,928 | 2,186 | 1,146 | 673 | |||||
Partnership investment in tax credit projects | 1,345 | 35 | 1,899 | 927 | 791 | |||||
Other noninterest expenses | 12,691 | 11,583 | 10,993 | 9,793 | 11,091 | |||||
Total Noninterest Expense | 103,376 | 102,423 | 99,269 | 90,396 | 90,439 | |||||
Income Before Income Taxes | 78,086 | 68,147 | 48,855 | 61,639 | 37,548 | |||||
Income taxes | 16,481 | 15,333 | 9,046 | 13,681 | 7,417 | |||||
Net Income | 61,605 | 52,814 | 39,809 | 47,958 | 30,131 | |||||
Preferred dividends | (2,012) | (2,013) | (2,014) | (2,437) | - | |||||
Net Income Available to Common Stockholders | $ | 59,593 | $ | 50,801 | $ | 37,795 | $ | 45,521 | $ | 30,131 |
Earnings per common share-diluted | $ | 1.41 | $ | 1.20 | $ | 0.98 | $ | 1.23 | $ | 0.82 |
Weighted average shares outstanding-diluted | 42,359,873 | 42,335,747 | 38,534,082 | 36,995,572 | 36,915,630 |
HEARTLAND FINANCIAL USA, INC. | ||||||||||
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) | ||||||||||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | ||||||||||
As of | ||||||||||
6/30/2021 | 3/31/2021 | 12/31/2020 | 9/30/2020 | 6/30/2020 | ||||||
Assets | ||||||||||
Cash and due from banks | $ | 208,702 | $ | 198,177 | $ | 219,243 | $ | 175,284 | $ | 211,429 |
Interest bearing deposits with other banks and short-term investments | 240,426 | 269,685 | 118,660 | 156,371 | 242,149 | |||||
Cash and cash equivalents | 449,128 | 467,862 | 337,903 | 331,655 | 453,578 | |||||
Time deposits in other financial institutions | 3,138 | 3,138 | 3,129 | 3,129 | 3,128 | |||||
Securities: | ||||||||||
Carried at fair value | 6,543,978 | 6,370,495 | 6,127,975 | 4,950,698 | 4,126,351 | |||||
Held to maturity, at cost, less allowance for credit losses | 85,439 | 85,293 | 88,839 | 88,700 | 90,579 | |||||
Other investments, at cost | 76,809 | 74,935 | 75,253 | 35,940 | 35,902 | |||||
Loans held for sale | 33,248 | 43,037 | 57,949 | 65,969 | 54,382 | |||||
Loans: | ||||||||||
Held to maturity | 10,012,014 | 10,050,456 | 10,023,051 | 9,099,646 | 9,246,830 | |||||
Allowance for credit losses | (120,726) | (130,172) | (131,606) | (103,377) | (119,937) | |||||
Loans, net | 9,891,288 | 9,920,284 | 9,891,445 | 8,996,269 | 9,126,893 | |||||
Premises, furniture and equipment, net | 226,358 | 225,047 | 226,094 | 200,028 | 198,481 | |||||
Goodwill | 576,005 | 576,005 | 576,005 | 446,345 | 446,345 | |||||
Core deposit and customer relationship intangibles, net | 37,452 | 39,867 | 42,383 | 40,520 | 43,011 | |||||
Servicing rights, net | 6,201 | 6,953 | 6,052 | 5,752 | 5,469 | |||||
Cash surrender value on life insurance | 189,619 | 188,521 | 187,664 | 173,111 | 172,813 | |||||
Other real estate, net | 6,314 | 6,236 | 6,624 | 5,050 | 5,539 | |||||
Other assets | 246,029 | 236,754 | 281,024 | 269,498 | 263,682 | |||||
Total Assets | $ | 18,371,006 | $ | 18,244,427 | $ | 17,908,339 | $ | 15,612,664 | $ | 15,026,153 |
Liabilities and Equity | ||||||||||
Liabilities | ||||||||||
Deposits: | ||||||||||
Demand | $ | 6,299,289 | $ | 6,175,946 | $ | 5,688,810 | $ | 5,022,567 | $ | 4,831,151 |
Savings | 8,189,223 | 8,179,251 | 8,019,704 | 6,742,151 | 6,810,296 | |||||
Time | 1,126,606 | 1,203,854 | 1,271,391 | 1,002,392 | 1,067,252 | |||||
Total deposits | 15,615,118 | 15,559,051 | 14,979,905 | 12,767,110 | 12,708,699 | |||||
Short-term borrowings | 152,563 | 140,597 | 167,872 | 306,706 | 88,631 | |||||
Other borrowings | 271,244 | 349,514 | 457,042 | 524,045 | 306,459 | |||||
Accrued expenses and other liabilities | 172,295 | 139,058 | 224,289 | 203,199 | 174,987 | |||||
Total Liabilities | 16,211,220 | 16,188,220 | 15,829,108 | 13,801,060 | 13,278,776 | |||||
Stockholders' Equity | ||||||||||
Preferred equity | 110,705 | 110,705 | 110,705 | 110,705 | 110,705 | |||||
Common stock | 42,245 | 42,174 | 42,094 | 36,885 | 36,845 | |||||
Capital surplus | 1,066,765 | 1,063,497 | 1,062,083 | 847,377 | 844,202 | |||||
Retained earnings | 883,484 | 833,171 | 791,630 | 761,211 | 723,067 | |||||
Accumulated other comprehensive income | 56,587 | 6,660 | 72,719 | 55,426 | 32,558 | |||||
Total Equity | 2,159,786 | 2,056,207 | 2,079,231 | 1,811,604 | 1,747,377 | |||||
Total Liabilities and Equity | $ | 18,371,006 | $ | 18,244,427 | $ | 17,908,339 | $ | 15,612,664 | $ | 15,026,153 |
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 | ||||||||||
6/30/2021 | 3/31/2021 | 12/31/2020 | 9/30/2020 | 6/30/2020 | ||||||
Average Balances | ||||||||||
Assets | $ | 18,293,756 | $ | 17,964,723 | $ | 16,401,152 | $ | 15,167,225 | $ | 14,391,856 |
Loans, net of unearned | 10,072,071 | 9,952,152 | 9,366,430 | 9,220,666 | 9,186,913 | |||||
Deposits | 15,576,345 | 15,044,561 | 13,518,020 | 12,650,822 | 12,288,378 | |||||
Earning assets | 16,819,978 | 16,460,124 | 15,042,079 | 13,868,360 | 13,103,159 | |||||
Interest bearing liabilities | 9,871,302 | 9,917,159 | 9,053,855 | 8,320,123 | 8,155,753 | |||||
Common equity | 1,980,904 | 1,963,674 | 1,769,575 | 1,661,381 | 1,574,902 | |||||
Total stockholders' equity | 2,091,609 | 2,074,379 | 1,880,280 | 1,772,086 | 1,580,997 | |||||
Tangible common equity (non-GAAP)(1)
| 1,366,285 | 1,346,270 | 1,238,691 | 1,172,891 | 1,083,834 | |||||
Key Performance Ratios | ||||||||||
Annualized return on average assets | 1.35 | % | 1.19 | % | 0.97 | % | 1.26 | % | 0.84 | % |
Annualized return on average common equity (GAAP) | 12.07 | 10.49 | 8.50 | 10.90 | 7.69 | |||||
Annualized return on average tangible common equity (non-GAAP)(1)
| 18.05 | 15.90 | 12.77 | 16.11 | 11.97 | |||||
Annualized ratio of net charge-offs to average loans | 0.12 | 0.06 | 0.01 | 0.92 | 0.11 | |||||
Annualized net interest margin (GAAP) | 3.37 | 3.44 | 3.51 | 3.51 | 3.81 | |||||
Annualized net interest margin, fully tax-equivalent (non-GAAP)(1)
| 3.41 | 3.48 | 3.55 | 3.55 | 3.85 | |||||
Efficiency ratio, fully tax-equivalent (non-GAAP)(1)
| 57.11 | 56.61 | 54.93 | 54.67 | 55.75 |
For the Quarter Ended June 30, |
For the Six Months Ended June 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Average Balances | ||||||||
Assets | $ | 18,293,756 | $ | 14,391,856 | $ | 18,130,148 | $ | 13,770,015 |
Loans, net of unearned | 10,072,071 | 9,186,913 | 10,012,443 | 8,775,566 | ||||
Deposits | 15,576,345 | 12,288,378 | 15,311,921 | 11,629,785 | ||||
Earning assets | 16,819,978 | 13,103,159 | 16,641,045 | 12,497,307 | ||||
Interest bearing liabilities | 9,871,302 | 8,155,753 | 9,894,103 | 7,998,847 | ||||
Common equity | 1,980,904 | 1,574,902 | 1,972,337 | 1,597,292 | ||||
Total stockholders' equity | 2,091,609 | 1,580,997 | 2,083,042 | 1,600,340 | ||||
Tangible common stockholders' equity | 1,366,285 | 1,083,834 | 1,356,333 | 1,104,770 | ||||
Key Performance Ratios | ||||||||
Annualized return on average assets | 1.35 | % | 0.84 | % | 1.27 | % | 0.73 | % |
Annualized return on average common equity (GAAP) | 12.07 | 7.69 | 11.29 | 6.32 | ||||
Annualized return on average tangible common equity (non-GAAP)(1)
| 18.05 | 11.97 | 16.99 | 9.95 | ||||
Annualized ratio of net charge-offs to average loans | 0.12 | 0.11 | 0.09 | 0.17 | ||||
Annualized net interest margin (GAAP) | 3.37 | 3.81 | 3.40 | 3.81 | ||||
Annualized net interest margin, fully tax-equivalent (non-GAAP)(1)
| 3.41 | 3.85 | 3.45 | 3.85 | ||||
Efficiency ratio, fully tax-equivalent (non-GAAP)(1)
| 57.11 | 55.75 | 56.86 | 58.64 | ||||
(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 | ||||||||||
6/30/2021 | 3/31/2021 | 12/31/2020 | 9/30/2020 | 6/30/2020 | ||||||
Common Share Data | ||||||||||
Book value per common share | $ | 48.50 | $ | 46.13 | $ | 46.77 | $ | 46.11 | $ | 44.42 |
Tangible book value per common share (non-GAAP)(1)
| $ | 33.98 | $ | 31.53 | $ | 32.07 | $ | 32.91 | $ | 31.14 |
Common shares outstanding, net of treasury stock | 42,245,452 | 42,173,675 | 42,093,862 | 36,885,390 | 36,844,744 | |||||
Tangible common equity ratio (non-GAAP)(1)
| 8.08 | % | 7.54 | % | 7.81 | % | 8.03 | % | 7.89 | % |
Other Selected Trend Information | ||||||||||
Effective tax rate | 21.11 | % | 22.50 | % | 18.52 | % | 22.20 | % | 19.75 | % |
Full time equivalent employees | 2,091 | 2,131 | 2,013 | 1,827 | 1,821 | |||||
Loans Held to Maturity | ||||||||||
Commercial and industrial | $ | 2,518,908 | $ | 2,421,260 | $ | 2,534,799 | $ | 2,303,646 | $ | 2,364,400 |
Paycheck Protection Program ('PPP') | 829,175 | 1,155,328 | 957,785 | 1,128,035 | 1,124,430 | |||||
Owner occupied commercial real estate | 1,940,134 | 1,837,559 | 1,776,406 | 1,494,902 | 1,433,271 | |||||
Commercial and business lending | 5,288,217 | 5,414,147 | 5,268,990 | 4,926,583 | 4,922,101 | |||||
Non-owner occupied commercial real estate | 1,987,369 | 1,967,183 | 1,921,481 | 1,659,683 | 1,543,623 | |||||
Real estate construction | 854,295 | 796,027 | 863,220 | 917,765 | 1,115,843 | |||||
Commercial real estate lending | 2,841,664 | 2,763,210 | 2,784,701 | 2,577,448 | 2,659,466 | |||||
Total commercial lending | 8,129,881 | 8,177,357 | 8,053,691 | 7,504,031 | 7,581,567 | |||||
Agricultural and agricultural real estate | 679,608 | 683,969 | 714,526 | 508,058 | 520,773 | |||||
Residential mortgage | 800,884 | 786,994 | 840,442 | 701,899 | 735,762 | |||||
Consumer | 401,641 | 402,136 | 414,392 | 385,658 | 408,728 | |||||
Total loans held to maturity | $ | 10,012,014 | $ | 10,050,456 | $ | 10,023,051 | $ | 9,099,646 | $ | 9,246,830 |
Total unfunded loan commitments | $ | 3,433,062 | $ | 3,306,042 | $ | 3,246,953 | $ | 2,980,484 | $ | 3,065,283 |
(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 DATA | ||||||||||
As of and for the Quarter Ended | ||||||||||
6/30/2021 | 3/31/2021 | 12/31/2020 | 9/30/2020 | 6/30/2020 | ||||||
Allowance for Credit Losses-Loans | ||||||||||
Balance, beginning of period | $ | 130,172 | $ | 131,606 | $ | 103,377 | $ | 119,937 | $ | 97,350 |
Allowance for acquired purchased credit deteriorated loans | - | - | 12,313 | - | - | |||||
Provision (benefit) for credit losses | (6,466) | 16 | 16,132 | 4,741 | 25,007 | |||||
Charge-offs | (3,497) | (2,126) | (1,104) | (21,753) | (3,564) | |||||
Recoveries | 517 | 676 | 888 | 452 | 1,144 | |||||
Balance, end of period | $ | 120,726 | $ | 130,172 | $ | 131,606 | $ | 103,377 | $ | 119,937 |
Allowance for Unfunded Commitments | ||||||||||
Balance, beginning of period | $ | 14,619 | $ | 15,280 | $ | 14,330 | $ | 17,392 | $ | 15,468 |
Provision (benefit) for credit losses | (617) | (661) | 950 | (3,062) | 1,924 | |||||
Balance, end of period | $ | 14,002 | $ | 14,619 | $ | 15,280 | $ | 14,330 | $ | 17,392 |
Allowance for lending related credit losses | $ | 134,728 | $ | 144,791 | $ | 146,886 | $ | 117,707 | $ | 137,329 |
Provision for Credit Losses | ||||||||||
Provision (benefit) for credit losses-loans | $ | (6,466) | $ | 16 | $ | 6,572 | $ | 4,741 | $ | 25,007 |
Provision for credit losses-acquired loans | - | - | 9,560 | - | - | |||||
Provision (benefit) for credit losses-unfunded commitments | (617) | (661) | (1,372) | (3,062) | 1,924 | |||||
Provision for credit losses-acquired unfunded commitments | - | - | 2,322 | - | - | |||||
Provision (benefit) for credit losses-held to maturity securities | 3 | (3) | (10) | (1) | (135) | |||||
Total provision (benefit) for credit losses | $ | (7,080) | $ | (648) | $ | 17,072 | $ | 1,678 | $ | 26,796 |
HEARTLAND FINANCIAL USA, INC. | ||||||||||
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) | ||||||||||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | ||||||||||
As of and for the Quarter Ended | ||||||||||
6/30/2021 | 3/31/2021 | 12/31/2020 | 9/30/2020 | 6/30/2020 | ||||||
Asset Quality | ||||||||||
Nonaccrual loans | $ | 85,268 | $ | 91,718 | $ | 87,386 | $ | 79,040 | $ | 91,609 |
Loans past due ninety days or more | 97 | 171 | 720 | 1,681 | 1,360 | |||||
Other real estate owned | 6,314 | 6,236 | 6,624 | 5,050 | 5,539 | |||||
Other repossessed assets | 50 | 239 | 240 | 130 | 29 | |||||
Total nonperforming assets | $ | 91,729 | $ | 98,364 | $ | 94,970 | $ | 85,901 | $ | 98,537 |
Performing troubled debt restructured loans | $ | 2,122 | $ | 2,394 | $ | 2,370 | $ | 11,818 | $ | 2,636 |
Nonperforming Assets Activity | ||||||||||
Balance, beginning of period | $ | 98,364 | $ | 94,970 | $ | 85,901 | $ | 98,537 | $ | 85,371 |
Net loan charge offs | (2,980) | (1,450) | (216) | (21,301) | (2,420) | |||||
New nonperforming loans | 7,989 | 14,936 | 8,664 | 11,834 | 26,857 | |||||
Acquired nonperforming assets | - | - | 12,781 | - | - | |||||
Reduction of nonperforming loans(1)
| (10,948) | (8,884) | (10,811) | (1,994) | (9,911) | |||||
Net OREO/repossessed assets sales proceeds and losses | (696) | (1,208) | (1,349) | (1,175) | (1,360) | |||||
Balance, end of period | $ | 91,729 | $ | 98,364 | $ | 94,970 | $ | 85,901 | $ | 98,537 |
Asset Quality Ratios | ||||||||||
Ratio of nonperforming loans to total loans | 0.85 | % | 0.91 | % | 0.88 | % | 0.89 | % | 1.01 | % |
Ratio of nonperforming loans and performing trouble debt restructured loans to total loans | 0.87 | 0.94 | 0.90 | 1.02 | 1.03 | |||||
Ratio of nonperforming assets to total assets | 0.50 | 0.54 | 0.53 | 0.55 | 0.66 | |||||
Annualized ratio of net loan charge-offs to average loans | 0.12 | 0.06 | 0.01 | 0.92 | 0.11 | |||||
Allowance for loan credit losses as a percent of loans | 1.21 | 1.30 | 1.31 | 1.14 | 1.30 | |||||
Allowance for lending related credit losses as a percent of loans | 1.35 | 1.44 | 1.47 | 1.29 | 1.49 | |||||
Allowance for loan credit losses as a percent of nonperforming loans | 141.42 | 141.66 | 149.37 | 128.07 | 129.01 | |||||
Loans delinquent 30-89 days as a percent of total loans | 0.17 | 0.16 | 0.23 | 0.17 | 0.22 | |||||
(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 | ||||||||||||||||||
June 30, 2021 | March 31, 2021 | June 30, 2020 | ||||||||||||||||
Average Balance | Interest | Rate |
Average Balance | Interest | Rate |
Average Balance | Interest | Rate | ||||||||||
Earning Assets | ||||||||||||||||||
Securities: | ||||||||||||||||||
Taxable | $ | 5,862,683 | $ | 31,546 | 2.16 | % | $ | 5,693,097 | $ | 30,443 | 2.17 | % | $ | 3,375,245 | $ | 23,362 | 2.78 | % |
Nontaxable(1)
| 740,601 | 5,773 | 3.13 | 730,565 | 5,700 | 3.16 | 433,329 | 4,233 | 3.93 | |||||||||
Total securities | 6,603,284 | 37,319 | 2.27 | 6,423,662 | 36,143 | 2.28 | 3,808,574 | 27,595 | 2.91 | |||||||||
Interest on deposits with other banks and short-term investments | 271,891 | 60 | 0.09 | 204,488 | 66 | 0.13 | 210,347 | 54 | 0.10 | |||||||||
Federal funds sold | - | - | - | 14,020 | 1 | 0.03 | - | - | - | |||||||||
Loans:(2)
| ||||||||||||||||||
Commercial and industrial(1)
| 2,469,742 | 28,562 | 4.64 | 2,500,250 | 28,222 | 4.58 | 2,453,066 | 30,759 | 5.04 | |||||||||
PPP loans | 1,047,559 | 11,186 | 4.28 | 992,517 | 10,149 | 4.15 | 916,405 | 6,017 | 2.64 | |||||||||
Owner occupied commercial real estate | 1,858,891 | 20,097 | 4.34 | 1,778,829 | 19,565 | 4.46 | 1,426,019 | 17,670 | 4.98 | |||||||||
Non-owner occupied commercial real estate | 1,980,374 | 21,734 | 4.40 | 1,937,564 | 22,121 | 4.63 | 1,540,958 | 19,055 | 4.97 | |||||||||
Real estate construction | 815,738 | 9,212 | 4.53 | 806,315 | 9,698 | 4.88 | 1,100,514 | 12,589 | 4.60 | |||||||||
Agricultural and agricultural real estate | 672,560 | 7,267 | 4.33 | 681,279 | 8,051 | 4.79 | 532,668 | 6,171 | 4.66 | |||||||||
Residential mortgage | 827,291 | 9,255 | 4.49 | 849,923 | 9,830 | 4.69 | 795,149 | 9,586 | 4.85 | |||||||||
Consumer | 399,916 | 5,152 | 5.17 | 405,475 | 5,367 | 5.37 | 422,134 | 5,685 | 5.42 | |||||||||
Less: allowance for credit losses-loans | (127,268) | - | - | (134,198) | - | - | (102,675) | - | - | |||||||||
Net loans | 9,944,803 | 112,465 | 4.54 | 9,817,954 | 113,003 | 4.67 | 9,084,238 | 107,532 | 4.76 | |||||||||
Total earning assets | 16,819,978 | 149,844 | 3.57 | % | 16,460,124 | 149,213 | 3.68 | % | 13,103,159 | 135,181 | 4.15 | % | ||||||
Nonearning Assets | 1,473,778 | 1,504,599 | 1,288,697 | |||||||||||||||
Total Assets | $ | 18,293,756 | $ | 17,964,723 | $ | 14,391,856 | ||||||||||||
Interest Bearing Liabilities | ||||||||||||||||||
Savings | $ | 8,234,151 | $ | 2,233 | 0.11 | % | $ | 8,032,308 | $ | 2,430 | 0.12 | % | $ | 6,690,504 | $ | 2,372 | 0.14 | % |
Time deposits | 1,171,266 | 1,557 | 0.53 | 1,233,682 | 1,965 | 0.65 | 1,096,386 | 3,762 | 1.38 | |||||||||
Short-term borrowings | 169,822 | 98 | 0.23 | 240,037 | 152 | 0.26 | 82,200 | 61 | 0.30 | |||||||||
Other borrowings | 296,063 | 2,976 | 4.03 | 411,132 | 3,300 | 3.26 | 286,663 | 3,424 | 4.80 | |||||||||
Total interest bearing liabilities | 9,871,302 | 6,864 | 0.28 | % | 9,917,159 | 7,847 | 0.32 | % | 8,155,753 | 9,619 | 0.47 | % | ||||||
Noninterest Bearing Liabilities | ||||||||||||||||||
Noninterest bearing deposits | 6,170,928 | 5,778,571 | 4,501,488 | |||||||||||||||
Accrued interest and other liabilities | 159,917 | 194,614 | 153,618 | |||||||||||||||
Total noninterest bearing liabilities | 6,330,845 | 5,973,185 | 4,655,106 | |||||||||||||||
Equity | 2,091,609 | 2,074,379 | 1,580,997 | |||||||||||||||
Total Liabilities and Equity | $ | 18,293,756 | $ | 17,964,723 | $ | 14,391,856 | ||||||||||||
Net interest income, fully tax-equivalent (non-GAAP)(1)(3)
| $ | 142,980 | $ | 141,366 | $ | 125,562 | ||||||||||||
Net interest spread(1)
| 3.29 | % | 3.36 | % | 3.68 | % | ||||||||||||
Net interest income, fully tax-equivalent (non-GAAP)(1)(3) to total earning assets
| 3.41 | % | 3.48 | % | 3.85 | % | ||||||||||||
Interest bearing liabilities to earning assets | 58.69 | % | 60.25 | % | 62.24 | % | ||||||||||||
(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 Six Months Ended | ||||||||||||
June 30, 2021 | June 30, 2020 | |||||||||||
Average Balance | Interest | Rate |
Average Balance | Interest | Rate | |||||||
Earning Assets | ||||||||||||
Securities: | ||||||||||||
Taxable | $ | 5,778,333 | $ | 61,989 | 2.16 | % | $ | 3,253,675 | $ | 45,093 | 2.79 | % |
Nontaxable(1)
| 735,636 | 11,473 | 3.15 | 360,932 | 6,996 | 3.90 | % | |||||
Total securities | 6,513,969 | 73,462 | 2.27 | 3,614,607 | 52,089 | 2.90 | ||||||
Interest bearing deposits with other banks and other short-term investments | 238,376 | 126 | 0.11 | 195,833 | 775 | 0.80 | ||||||
Federal funds sold | 6,971 | 1 | 0.03 | - | - | - | ||||||
Loans:(2)
| ||||||||||||
Commercial and industrial(1)
| 2,485,210 | 56,784 | 4.61 | 2,530,349 | 63,213 | 5.02 | % | |||||
PPP loans | 1,020,190 | 21,335 | 4.22 | 458,202 | 6,017 | 2.64 | % | |||||
Owner occupied commercial real estate | 1,818,932 | 39,662 | 4.40 | 1,429,560 | 36,251 | 5.10 | % | |||||
Non-owner occupied commercial real estate | 1,958,938 | 43,855 | 4.51 | 1,506,583 | 38,585 | 5.15 | % | |||||
Real estate construction | 811,053 | 18,910 | 4.70 | 1,073,175 | 25,434 | 4.77 | % | |||||
Agricultural and agricultural real estate
| 676,895 | 15,318 | 4.56 | 542,818 | 13,210 | 4.89 | % | |||||
Residential mortgage | 838,545 | 19,085 | 4.59 | 807,440 | 20,007 | 4.98 | % | |||||
Consumer | 402,680 | 10,519 | 5.27 | 427,439 | 11,780 | 5.54 | % | |||||
Less: allowance for credit losses-loans | (130,714) | - | - | (88,699) | - | - | ||||||
Net loans | 9,881,729 | 225,468 | 4.60 | 8,686,867 | 214,497 | 4.97 | ||||||
Total earning assets | 16,641,045 | 299,057 | 3.62 | % | 12,497,307 | 267,361 | 4.30 | % | ||||
Nonearning Assets | 1,489,103 | 1,272,708 | ||||||||||
Total Assets | $ | 18,130,148 | $ | 13,770,015 | ||||||||
Interest Bearing Liabilities
| ||||||||||||
Savings | $ | 8,133,787 | $ | 4,663 | 0.12 | % | $ | 6,484,016 | $ | 12,454 | 0.39 | % |
Time deposits | 1,202,301 | 3,522 | 0.59 | % | 1,121,502 | 8,262 | 1.48 | |||||
Short-term borrowings | 204,735 | 250 | 0.25 | % | 112,004 | 357 | 0.64 | |||||
Other borrowings | 353,280 | 6,276 | 3.58 | % | 281,325 | 7,084 | 5.06 | |||||
Total interest bearing liabilities | 9,894,103 | 14,711 | 0.30 | % | 7,998,847 | 28,157 | 0.71 | % | ||||
Noninterest Bearing Liabilities
| ||||||||||||
Noninterest bearing deposits | 5,975,833 | 4,024,267 | ||||||||||
Accrued interest and other liabilities | 177,170 | 146,561 | ||||||||||
Total noninterest bearing liabilities | 6,153,003 | 4,170,828 | ||||||||||
Stockholders' Equity | 2,083,042 | 1,600,340 | ||||||||||
Total Liabilities and Stockholders' Equity | $ | 18,130,148 | $ | 13,770,015 | ||||||||
Net interest income, fully tax-equivalent (non-GAAP)(1)(3)
| $ | 284,346 | $ | 239,204 | ||||||||
Net interest spread(1)
| 3.32 | % | 3.59 | % | ||||||||
Net interest income, fully tax-equivalent (non-GAAP)(1)(3) to total earning assets
| 3.45 | % | 3.85 | % | ||||||||
Interest bearing liabilities to earning assets | 59.46 | % | 64.00 | % | ||||||||
(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. | ||||||||||
SELECTED FINANCIAL DATA - SUBSIDIARY BANKS (Unaudited) | ||||||||||
DOLLARS IN THOUSANDS | ||||||||||
As of and For the Quarter Ended | ||||||||||
6/30/2021 | 3/31/2021 | 12/31/2020 | 9/30/2020 | 6/30/2020 | ||||||
Total Assets | ||||||||||
First Bank & Trust | $ | 2,882,969 | $ | 2,991,053 | $ | 3,171,961 | $ | 1,289,187 | $ | 1,256,710 |
Citywide Banks | 2,611,842 | 2,632,199 | 2,628,963 | 2,639,516 | 2,546,942 | |||||
New Mexico Bank & Trust | 2,494,257 | 2,356,918 | 2,032,637 | 2,002,663 | 1,899,194 | |||||
Dubuque Bank and Trust Company | 1,990,040 | 1,932,234 | 1,853,078 | 1,838,260 | 1,849,035 | |||||
Illinois Bank & Trust | 1,671,240 | 1,584,561 | 1,525,503 | 1,500,012 | 1,470,000 | |||||
Arizona Bank & Trust | 1,645,816 | 1,614,740 | 1,529,800 | 1,039,253 | 970,775 | |||||
Bank of Blue Valley | 1,419,003 | 1,425,434 | 1,376,080 | 1,424,261 | 1,380,159 | |||||
Wisconsin Bank & Trust | 1,252,096 | 1,264,009 | 1,267,488 | 1,262,069 | 1,203,108 | |||||
Premier Valley Bank | 1,126,807 | 1,062,607 | 1,076,615 | 1,042,437 | 1,031,899 | |||||
Minnesota Bank & Trust | 955,638 | 995,692 | 1,000,168 | 1,007,548 | 951,236 | |||||
Rocky Mountain Bank | 646,821 | 620,800 | 616,157 | 617,169 | 590,764 | |||||
Total Deposits | ||||||||||
First Bank & Trust | $ | 2,361,391 | $ | 2,427,920 | $ | 2,622,716 | $ | 936,366 | $ | 959,886 |
Citywide Banks | 2,174,237 | 2,231,320 | 2,181,511 | 2,163,051 | 2,147,642 | |||||
New Mexico Bank & Trust | 2,195,838 | 2,077,304 | 1,749,963 | 1,747,527 | 1,698,584 | |||||
Dubuque Bank and Trust Company | 1,471,564 | 1,565,782 | 1,456,908 | 1,591,561 | 1,496,559 | |||||
Illinois Bank & Trust | 1,512,106 | 1,426,426 | 1,338,677 | 1,307,513 | 1,318,866 | |||||
Arizona Bank & Trust | 1,450,248 | 1,453,888 | 1,357,158 | 886,174 | 865,430 | |||||
Bank of Blue Valley | 1,168,617 | 1,178,114 | 1,138,264 | 1,142,910 | 1,138,818 | |||||
Wisconsin Bank & Trust | 1,093,119 | 1,067,735 | 1,057,369 | 1,011,843 | 1,050,766 | |||||
Premier Valley Bank | 963,459 | 896,715 | 836,984 | 855,913 | 869,165 | |||||
Minnesota Bank & Trust | 762,549 | 813,693 | 789,555 | 804,045 | 820,199 | |||||
Rocky Mountain Bank | 568,961 | 549,894 | 538,012 | 533,429 | 519,029 |
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 | ||||||||||
6/30/2021 | 3/31/2021 | 12/31/2020 | 9/30/2020 | 6/30/2020 | ||||||
Reconciliation of Annualized Return on Average Tangible Common Equity (non-GAAP) | ||||||||||
Net income available to common stockholders (GAAP) | $ | 59,593 | $ | 50,801 | $ | 37,795 | $ | 45,521 | $ | 30,131 |
Plus core deposit and customer relationship intangibles amortization, net of tax(1)
| 1,907 | 1,988 | 1,975 | 1,969 | 2,130 | |||||
Net income available to common stockholders excluding intangible amortization (non-GAAP) | $ | 61,500 | $ | 52,789 | $ | 39,770 | $ | 47,490 | $ | 32,261 |
Average common equity (GAAP) | $ | 1,980,904 | $ | 1,963,674 | $ | 1,769,575 | $ | 1,661,381 | $ | 1,574,902 |
Less average goodwill | 576,005 | 576,005 | 488,151 | 446,345 | 446,345 | |||||
Less average core deposit and customer relationship intangibles, net | 38,614 | 41,399 | 42,733 | 42,145 | 44,723 | |||||
Average tangible common equity (non-GAAP) | $ | 1,366,285 | $ | 1,346,270 | $ | 1,238,691 | $ | 1,172,891 | $ | 1,083,834 |
Annualized return on average common equity (GAAP) | 12.07 | % | 10.49 | % | 8.50 | % | 10.90 | % | 7.69 | % |
Annualized return on average tangible common equity (non-GAAP) | 18.05 | % | 15.90 | % | 12.77 | % | 16.11 | % | 11.97 | % |
Reconciliation of Annualized Net Interest Margin, Fully Tax-Equivalent (non-GAAP) | ||||||||||
Net Interest Income (GAAP) | $ | 141,218 | $ | 139,605 | $ | 132,575 | $ | 122,497 | $ | 124,146 |
Plus tax-equivalent adjustment(1)
| 1,762 | 1,761 | 1,529 | 1,390 | 1,416 | |||||
Net interest income, fully tax-equivalent (non-GAAP) | $ | 142,980 | $ | 141,366 | $ | 134,104 | $ | 123,887 | $ | 125,562 |
Average earning assets | $ | 16,819,978 | $ | 16,460,124 | $ | 15,042,079 | $ | 13,868,360 | $ | 13,103,159 |
Annualized net interest margin (GAAP) | 3.37 | % | 3.44 | % | 3.51 | % | 3.51 | % | 3.81 | % |
Annualized net interest margin, fully tax-equivalent (non-GAAP) | 3.41 | 3.48 | 3.55 | 3.55 | 3.85 | |||||
Net purchase accounting discount amortization on loans included in annualized net interest margin | 0.09 | 0.12 | 0.10 | 0.10 | 0.16 |
Reconciliation of Tangible Book Value Per Common Share (non-GAAP) | ||||||||||
Common equity (GAAP) | $ | 2,049,081 | $ | 1,945,502 | $ | 1,968,526 | $ | 1,700,899 | $ | 1,636,672 |
Less goodwill | 576,005 | 576,005 | 576,005 | 446,345 | 446,345 | |||||
Less core deposit and customer relationship intangibles, net | 37,452 | 39,867 | 42,383 | 40,520 | 43,011 | |||||
Tangible common equity (non-GAAP) | $ | 1,435,624 | $ | 1,329,630 | $ | 1,350,138 | $ | 1,214,034 | $ | 1,147,316 |
Common shares outstanding, net of treasury stock | 42,245,452 | 42,173,675 | 42,093,862 | 36,885,390 | 36,844,744 | |||||
Common equity (book value) per share (GAAP) | $ | 48.50 | $ | 46.13 | $ | 46.77 | $ | 46.11 | $ | 44.42 |
Tangible book value per common share (non-GAAP) | $ | 33.98 | $ | 31.53 | $ | 32.07 | $ | 32.91 | $ | 31.14 |
Reconciliation of Tangible Common Equity Ratio (non-GAAP) | ||||||||||
Tangible common equity (non-GAAP) | $ | 1,435,624 | $ | 1,329,630 | $ | 1,350,138 | $ | 1,214,034 | $ | 1,147,316 |
Total assets (GAAP) | $ | 18,371,006 | $ | 18,244,427 | $ | 17,908,339 | $ | 15,612,664 | $ | 15,026,153 |
Less goodwill | 576,005 | 576,005 | 576,005 | 446,345 | 446,345 | |||||
Less core deposit and customer relationship intangibles, net | 37,452 | 39,867 | 42,383 | 40,520 | 43,011 | |||||
Total tangible assets (non-GAAP) | $ | 17,757,549 | $ | 17,628,555 | $ | 17,289,951 | $ | 15,125,799 | $ | 14,536,797 |
Tangible common equity ratio (non-GAAP) | 8.08 | % | 7.54 | % | 7.81 | % | 8.03 | % | 7.89 | % |
(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 | ||||||||||
Reconciliation of Efficiency Ratio (non-GAAP) | For the Quarter Ended | |||||||||
6/30/2021 | 3/31/2021 | 12/31/2020 | 9/30/2020 | 6/30/2020 | ||||||
Net interest income (GAAP) | $ | 141,218 | $ | 139,605 | $ | 132,575 | $ | 122,497 | $ | 124,146 |
Tax-equivalent adjustment(1)
| 1,762 | 1,761 | 1,529 | 1,390 | 1,416 | |||||
Fully tax-equivalent net interest income | 142,980 | 141,366 | 134,104 | 123,887 | 125,562 | |||||
Noninterest income | 33,164 | 30,317 | 32,621 | 31,216 | 30,637 | |||||
Securities (gains)/losses, net | (2,842) | 30 | (2,829) | (1,300) | (2,006) | |||||
Unrealized (gain)/loss on equity securities, net | (83) | 110 | (36) | (155) | (680) | |||||
Valuation adjustment on servicing rights | 526 | (917) | 102 | 120 | (9) | |||||
Adjusted revenue (non-GAAP) | $ | 173,745 | $ | 170,906 | $ | 163,962 | $ | 153,768 | $ | 153,504 |
Total noninterest expenses (GAAP) | $ | 103,376 | $ | 102,423 | $ | 99,269 | $ | 90,396 | $ | 90,439 |
Less: | ||||||||||
Core deposit and customer relationship intangibles amortization | 2,415 | 2,516 | 2,501 | 2,492 | 2,696 | |||||
Partnership investment in tax credit projects | 1,345 | 35 | 1,899 | 927 | 791 | |||||
Loss on sales/valuation of assets, net | 183 | 194 | 2,621 | 1,763 | 701 | |||||
Acquisition, integration and restructuring costs | 210 | 2,928 | 2,186 | 1,146 | 673 | |||||
Adjusted noninterest expenses (non-GAAP) | $ | 99,223 | $ | 96,750 | $ | 90,062 | $ | 84,068 | $ | 85,578 |
Efficiency ratio, fully tax-equivalent (non-GAAP) | 57.11 | % | 56.61 | % | 54.93 | % | 54.67 | % | 55.75 | % |
Acquisition, integration and restructuring costs | ||||||||||
Salaries and employee benefits | $ | 44 | $ | 534 | $ | 232 | $ | - | $ | 122 |
Occupancy | 1 | 9 | - | - | - | |||||
Furniture and equipment | 41 | 607 | 423 | 496 | 15 | |||||
Professional fees | 63 | 670 | 1,422 | 476 | 505 | |||||
Advertising | 6 | 156 | 42 | 8 | 4 | |||||
Other noninterest expenses | 55 | 952 | 67 | 166 | 27 | |||||
Total acquisition, integration and restructuring costs | $ | 210 | $ | 2,928 | $ | 2,186 | $ | 1,146 | $ | 673 |
After tax impact on diluted earnings per common share(1)
| $ | - | $ | 0.05 | $ | 0.04 | $ | 0.02 | $ | 0.01 |
(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 June 30, |
For the Six Months Ended June 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Reconciliation of Annualized Return on Average Tangible Common Equity (non-GAAP) | ||||||||
Net income available to common stockholders (GAAP) | $ | 59,593 | $ | 30,131 | $ | 110,394 | $ | 50,171 |
Plus core deposit and customer relationship intangibles amortization, net of tax(1)
| 1,907 | 2,130 | 3,895 | 4,485 | ||||
Net income available to common stockholders excluding intangible amortization (non-GAAP) | $ | 61,500 | $ | 32,261 | $ | 114,289 | $ | 54,656 |
Average common equity (GAAP) | $ | 1,980,904 | $ | 1,574,902 | $ | 1,972,337 | $ | 1,597,292 |
Less average goodwill | 576,005 | 446,345 | 576,005 | 446,345 | ||||
Less average core deposit and customer relationship intangibles, net | 38,614 | 44,723 | 39,999 | 46,177 | ||||
Average tangible common equity (non-GAAP) | $ | 1,366,285 | $ | 1,083,834 | $ | 1,356,333 | $ | 1,104,770 |
Annualized return on average common equity (GAAP) | 12.07 | % | 7.69 | % | 11.29 | % | 6.32 | % |
Annualized return on average tangible common equity (non-GAAP) | 18.05 | % | 11.97 | % | 16.99 | % | 9.95 | % |
Reconciliation of Annualized Net Interest Margin, Fully Tax-Equivalent (non-GAAP) | ||||||||
Net Interest Income (GAAP) | $ | 141,218 | $ | 124,146 | $ | 280,823 | $ | 236,657 |
Plus tax-equivalent adjustment(1)
| 1,762 | 1,416 | 3,523 | 2,547 | ||||
Net interest income, fully tax-equivalent (non-GAAP) | $ | 142,980 | $ | 125,562 | $ | 284,346 | $ | 239,204 |
Average earning assets | $ | 16,819,978 | $ | 13,103,159 | $ | 16,641,045 | $ | 12,497,307 |
Annualized net interest margin (GAAP) | 3.37 | % | 3.81 | % | 3.40 | % | 3.81 | % |
Annualized net interest margin, fully tax-equivalent (non-GAAP) | 3.41 | 3.85 | 3.45 | 3.85 | ||||
Purchase accounting discount amortization on loans included in annualized net interest margin | 0.09 | 0.16 | 0.11 | 0.10 | ||||
(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 | ||||||||
Reconciliation of Efficiency Ratio (non-GAAP) |
For the Quarter Ended June 30, |
For the Six Months Ended June 30, | ||||||
2021 | 2020 | 2021 | 2020 | |||||
Net interest income (GAAP) | $ | 141,218 | $ | 124,146 | $ | 280,823 | $ | 236,657 |
Tax-equivalent adjustment(1)
| 1,762 | 1,416 | 3,523 | 2,547 | ||||
Fully tax-equivalent net interest income | 142,980 | 125,562 | 284,346 | 239,204 | ||||
Noninterest income | 33,164 | 30,637 | 63,481 | 56,454 | ||||
Securities gains, net | (2,842) | (2,006) | (2,812) | (3,664) | ||||
Unrealized (gain)/loss on equity securities, net | (83) | (680) | 27 | (449) | ||||
Valuation adjustment on servicing rights | 526 | (9) | (391) | 1,556 | ||||
Adjusted revenue (non-GAAP) | $ | 173,745 | $ | 153,504 | $ | 344,651 | $ | 293,101 |
Total noninterest expenses (GAAP) | $ | 103,376 | $ | 90,439 | $ | 205,799 | $ | 181,298 |
Less: | ||||||||
Core deposit and customer relationship intangibles amortization | 2,415 | 2,696 | 4,931 | 5,677 | ||||
Partnership investment in tax credit projects | 1,345 | 791 | 1,380 | 975 | ||||
Loss on sales/valuation of assets, net | 183 | 701 | 377 | 717 | ||||
Acquisition, integration and restructuring costs | 210 | 673 | 3,138 | 2,049 | ||||
Adjusted noninterest expenses (non-GAAP) | $ | 99,223 | $ | 85,578 | $ | 195,973 | $ | 171,880 |
Efficiency ratio, fully tax-equivalent (non-GAAP) | 57.11 | % | 55.75 | % | 56.86 | % | 58.64 | % |
Acquisition, integration and restructuring costs | ||||||||
Salaries and employee benefits | $ | 44 | $ | 122 | $ | 578 | $ | 166 |
Occupancy | 1 | - | 10 | - | ||||
Furniture and equipment | 41 | 15 | 648 | 39 | ||||
Professional fees | 63 | 505 | 733 | 1,501 | ||||
Advertising | 6 | 4 | 162 | 93 | ||||
Other noninterest expenses | 55 | 27 | 1,007 | 250 | ||||
Total acquisition, integration and restructuring costs | $ | 210 | $ | 673 | $ | 3,138 | $ | 2,049 |
After tax impact on diluted earnings per common share(1)
| $ | - | $ | 0.01 | $ | 0.06 | $ | 0.04 |
(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 AND FULL TIME EQUIVALENT EMPLOYEE DATA | ||||||||||
As of and For the Quarter Ended | ||||||||||
6/30/2021 | 3/31/2021 | 12/31/2020 | 9/30/2020 | 6/30/2020 | ||||||
PPP I loan balances | $ | 374,174 | $ | 739,562 | $ | 957,785 | $ | 1,128,035 | $ | 1,124,430 |
Average PPP I loan balances | 597,703 | 841,262 | 1,064,863 | 1,128,488 | 916,405 | |||||
PPP I fee income | $ | 7,313 | $ | 7,464 | $ | 9,109 | $ | 4,542 | $ | 3,655 |
PPP I interest income | 1,445 | 2,087 | 2,697 | 2,920 | 2,362 | |||||
Total PPP I interest income | $ | 8,758 | $ | 9,551 | $ | 11,806 | $ | 7,462 | $ | 6,017 |
PPP II loan balances | $ | 455,001 | $ | 415,766 | $ | - | $ | - | $ | - |
Average PPP II loan balances | 449,856 | 151,255 | - | - | - | |||||
PPP II fee income | $ | 1,263 | $ | 223 | $ | - | $ | - | $ | - |
PPP II interest income | 1,165 | 375 | - | - | - | |||||
Total PPP II interest income | $ | 2,428 | $ | 598 | $ | - | $ | - | $ | - |
Selected ratios excluding total PPP loans and total PPP interest income | ||||||||||
Annualized net interest margin (GAAP) | 3.31 | % | 3.39 | % | 3.44 | % | 3.59 | % | 3.90 | % |
Annualized net interest margin, fully tax-equivalent (non-GAAP)(1)
| 3.35 | 3.44 | 3.48 | 3.64 | 3.95 | |||||
Ratio of nonperforming loans to total loans | 0.93 | 1.03 | 0.97 | 1.01 | 1.14 | |||||
Ratio of nonperforming loans and performing trouble debt restructured loans to total loans | 0.95 | 1.06 | 1.00 | 1.16 | 1.18 | |||||
Ratio of nonperforming assets to total assets | 0.52 | 0.58 | 0.56 | 0.59 | 0.71 | |||||
Annualized ratio of net loan charge-offs to average loans | 0.13 | 0.07 | 0.01 | 1.05 | 0.12 | |||||
Allowance for loan credit losses as a percent of loans | 1.31 | 1.46 | 1.45 | 1.30 | 1.48 | |||||
Allowance for lending related credit losses as a percent of loans | 1.47 | 1.63 | 1.62 | 1.48 | 1.69 | |||||
Loans delinquent 30-89 days as a percent of total loans | 0.18 | 0.18 | 0.25 | 0.19 | 0.26 | |||||
After tax impact of total PPP interest income on diluted earnings per common share(1)
| $ | 0.21 | $ | 0.19 | $ | 0.24 | $ | 0.16 | $ | 0.13 |
As of and For the Six Months Ended | ||||
June 30, 2021 | June 30, 2020 | |||
Average PPP I loan balances | $ | 718,810 | $ | 458,202 |
Average PPP II loan balances | 301,380 | - | ||
PPP I and II fee income | $ | 16,263 | $ | 3,655 |
PPP I and II interest income | 5,072 | 2,362 | ||
Total PPP I and II interest income | $ | 21,335 | $ | 6,017 |
Selected ratios excluding total PPP loans and total PPP interest income | ||||
Annualized net interest margin (GAAP) | 3.35 | % | 3.85 | % |
Annualized net interest margin, fully tax-equivalent (non-GAAP)(1)
| 3.40 | 3.90 | ||
Annualized ratio of net loan charge-offs to average loans | 0.10 | 0.18 | ||
After tax impact of total PPP interest income on diluted earnings per common share(1)
| $ | 0.40 | $ | 0.13 |
(1) Computed on a tax-equivalent basis using an effective tax rate of 21%. |
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Heartland Financial USA Inc. published this content on 26 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 July 2021 20:07:07 UTC.