Heartland Financial USA, Inc. ("HTLF") Reports Quarterly Results as of March 31, 2022

Rhea-AI Summary

Heartland Financial USA, Inc. (NASDAQ: HTLF) reported a 6% decline in net income to $47.9 million for Q1 2022, with diluted earnings per share at $1.12. Loan growth was robust, rising by $357.8 million (4%) excluding PPP loans. However, noninterest income increased by 14% to $34.6 million, driven by service charges and credit card revenue. The board approved a bank charter consolidation, expected to yield $20 million in financial benefits post completion in 2023, despite incurring $17 million in restructuring costs.

Positive

• Loan growth of $357.8 million (4%), excluding PPP loans.
• Noninterest income increased by 14% to $34.6 million.
• Successful execution of growth strategies resulting in strong metrics.

Negative

• Net income declined by 6% from Q1 2021.
• Diluted earnings per share fell by 7% to $1.12.
• Net interest income decreased by 4% to $134.7 million.

DUBUQUE, Iowa, April 25, 2022 (GLOBE NEWSWIRE) -- Heartland Financial USA, Inc. (NASDAQ: HTLF) — 

Highlights and Developments

• Quarterly loan growth of $357.8 million or 4%, exclusive of Paycheck Protection Program ("PPP") loans
• Quarterly non-time deposit growth of $219.4 million or 1%
• Quarterly net income available to common stockholders of $47.9 million
• Diluted earnings per common share of $1.12
• Nonperforming assets to total assets of 0.32% and 30-89 day loan delinquencies were 0.10% of total loans

	Three Months Ended March 31,
		2022				2021
Net income available to common stockholders (in millions)	$	47.9			$	50.8
Diluted earnings per common share		1.12				1.20
Return on average assets		1.05	%			1.19	%
Return on average common equity		9.69				10.49
Return on average tangible common equity (non-GAAP)(1)		14.38				15.90
Net interest margin		3.08				3.44
Net interest margin, fully tax-equivalent (non-GAAP)(1)		3.12				3.48
Efficiency ratio, fully-tax equivalent (non-GAAP)(1)		64.65				56.61

(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 is off to a great start in 2022. The execution of our growth strategies and recent investments in talent and technology resulted in strong loan growth, increased fee revenue and excellent credit metrics for the first quarter."

Bruce K. Lee, president and chief executive officer, HTLF

Heartland Financial USA, Inc. (NASDAQ: HTLF) today reported the following results for the quarter ended March 31, 2022 compared to the quarter ended March 31, 2021:

• Net income available to common stockholders of $47.9 million compared to $50.8 million, a decrease of $2.9 million or 6%.
• Earnings per diluted common share of $1.12 compared to $1.20, a decrease of $0.08 or 7%.
• Net interest income of $134.7 million compared to $139.6 million, a decrease of $4.9 million or 4%.
• Return on average common equity was 9.69% and return on average assets was 1.05% compared to 10.49% and 1.19%.
• Return on average tangible common equity (non-GAAP) was 14.38% compared to 15.90%.
  
  

"HTLF is off to a great start in 2022. The execution of our growth strategies and recent investments in talent and technology resulted in strong loan growth, increased fee revenue and excellent credit metrics for the first quarter," said Bruce K. Lee, president and chief executive officer of HTLF.

Charter Consolidation Update
The HTLF Board of Directors unanimously approved a plan to consolidate its 11 separate bank charters. The consolidation project is underway and is expected to be completed by the end of 2023. The remaining estimated restructuring costs of the project are approximately $17.0 million. The ongoing financial benefits from consolidation are expected to be approximately $20.0 million when the project is completed and are expected to arise from the elimination of redundancies and improved operating processes. The consolidation will also increase operating capacity to be leveraged with future growth and provide better alignment of products and services.

Net Interest Income and Net Interest Margin

Net interest margin, expressed as a percentage of average earning assets, was 3.08% (3.12% on a fully tax-equivalent basis, non-GAAP) for the first quarter of 2022 compared to 3.44% (3.48% on a fully tax-equivalent basis, non-GAAP) during the first quarter of 2021.

Total interest income and average earning asset changes for the first quarter of 2022 compared to the first quarter of 2021 were:

• Total interest income was $141.3 million, which was a decrease of $6.2 million or 4% from $147.5 million and primarily attributable to lower yields and a reduction of PPP loan interest income. PPP loan interest income totaled $4.3 million compared to $10.1 million, which was a decrease of $5.8 million or 57%.
• Total interest income on a tax-equivalent basis (non-GAAP) was $143.4 million, which was a decrease of $5.8 million or 4% from $149.2 million.
• Average earning assets increased $1.30 billion or 8% to $17.76 billion compared to $16.46 billion, which was primarily attributable to increases in the securities portfolio.
• The average rate on earning assets decreased 41 basis points to 3.27% compared to 3.68%, which was primarily due to a shift in earning asset mix. Total average securities were 43% of total average earning assets compared to 39%.

Total interest expense and average interest bearing liability changes for the first quarter of 2022 compared to the first quarter of 2021 were:

• Total interest expense was $6.6 million, a decrease of $1.3 million or 16% from $7.8 million, based on a decrease in the average interest rate paid, which was partially offset by an increase in average interest bearing liabilities.
• The average interest rate paid on interest bearing liabilities decreased to 0.26% compared to 0.32%.
• Average interest bearing deposits increased $695.6 million or 8% to $9.96 billion from $9.27 billion which was primarily attributable to deposit growth.
• The average interest rate paid on interest bearing deposits decreased 7 basis points to 0.12% compared to 0.19%.
• Average borrowings decreased $159.4 million or 24% to $491.8 million from $651.2 million, which was primarily attributable to reduced advances from the PPP lending fund used to fund PPP loans to borrowers. Average advances from the PPP lending fund were $0 compared to $143.7 million. The average interest rate paid on borrowings was 2.97% compared to 2.15%.
  
  

Net interest income changes for the first quarter of 2022 compared to the first quarter of 2021 were:

• Net interest income totaled $134.7 million compared to $139.6 million, which was a decrease of $4.9 million or 4%. PPP loan interest income totaled $4.3 million compared to $10.1 million, which was a decrease of $5.8 million or 57%.
• Net interest income on a tax-equivalent basis (non-GAAP) totaled $136.8 million compared to $141.4 million, which was a decrease of $4.6 million or 3%.

Noninterest Income and Noninterest Expense

Total noninterest income was $34.6 million during the first quarter of 2022 compared to $30.3 million during the first quarter of 2021, an increase of $4.3 million or 14%. Significant changes within the noninterest income category for the first quarter of 2022 compared to the first quarter of 2021 were:

• Service charges and fees increased $1.6 million or 12% to $15.3 million from $13.7 million. Credit card revenue was $5.6 million compared to $4.3 million, which was an increase of $1.3 million or 31%.
• Net security gains totaled $2.9 million compared to net losses of $30,000.
• Net gains on sales of loans held for sale totaled $3.4 million compared to $6.4 million, which was a decrease of $3.0 million or 47% and was primarily attributable to a decrease of loans sold to the secondary market.
• Other noninterest income totaled $3.9 million compared to $1.2 million, which was an increase of $2.8 million. Commercial swap fee income and syndication income totaled $3.0 million compared to $77,000.

  
Total noninterest expense was $110.8 million during the first quarter of 2022 compared to $102.4 million during the first quarter of 2021, which was an increase of $8.4 million or 8%. Significant changes within the noninterest expense category for the first quarter of 2022 compared to the first quarter of 2021 were:

• Salaries and employee benefits totaled $66.2 million compared to $59.1 million, which was an increase of $7.1 million or 12%. The increase was primarily attributable to higher salary and health care expenses as a result of more full time equivalent employees and normalized health care usage. Full-time equivalent employees increased 77 to 2,208 compared to 2,131.
• Professional fees increased $1.7 million or 12% to $15.2 million compared to $13.5 million. The increase was primarily attributable to higher cloud based computing expenses.
• Other noninterest expenses increased $2.5 million or 22% to $14.1 million compared to $11.6 million. The following items impacted the first quarter of 2022 compared to the first quarter of 2021:
  • Travel and staff and customer entertainment expenses increased $651,000 to $1.1 million from $482,000. In-person meetings and events were limited in the first quarter of 2021 due to the pandemic.
  • Credit card processing and rebate expenses increased $1.2 million or 53% to $3.5 million from $2.3 million, which was primarily attributable to increased volume.
    
    

The effective tax rate was 22.32% for the first quarter of 2022 compared to 22.50% for the first quarter of 2021. The following items impacted the first quarter 2022 and 2021 tax calculations:

• Solar energy tax credits of $0 compared to $97,000.
• Federal low-income housing tax credits of $135,000 in each quarterly calculation.
• New markets tax credits of $75,000 in each quarterly calculation.
• Historic rehabilitation tax credits of $63,000 compared to $0.
• Tax-exempt interest income as a percentage of pre-tax income of 12.42% compared to 9.72%.
• Tax benefit of $172,000 compared to $153,000 resulting from the vesting of restricted stock units.

Total Assets, Total Loans and Total Deposits

Total assets were $19.24 billion at March 31, 2022, a decrease of $35.3 million or less than 1% from $19.27 billion at year-end 2021. Securities represented 37% and 40% of total assets at March 31, 2022, and December 31, 2021, respectively.

Total loans held to maturity were $10.19 billion at March 31, 2022, compared to $9.95 billion at December 31, 2021, which was an increase of $232.0 million or 2%. Excluding total PPP loans, loans increased $357.8 million or 4% during the first quarter of 2022.

Significant changes by loan category at March 31, 2022 compared to December 31, 2021 included:

• Commercial and business lending, which includes commercial and industrial, PPP and owner occupied commercial real estate loans, increased $73.5 million or 1% to $5.16 billion compared to $5.09 billion.
  • PPP loans originated in 2020 ("PPP I") decreased $21.4 million or 79%. PPP loans originated in 2021 ("PPP II") decreased $104.4 million or 60%.
  • Excluding total PPP loans, commercial and business lending increased $199.4 million or 4% to $5.08 billion from $4.89 billion.
• Commercial real estate lending, which includes non-owner occupied commercial real estate and construction loans, increased $137.5 million or 5% to $3.00 billion compared to $2.87 billion.

Total deposits were $16.67 billion as of March 31, 2022, compared to $16.42 billion at December 31, 2021. Significant deposit changes by category at March 31, 2022 compared to December 31, 2021 included:

• Demand deposits decreased $119.1 million or 2% to $6.38 billion compared to $6.50 billion.
• Savings deposits increased $338.5 million or 4% to $9.24 billion from $8.90 billion.

Provision and Allowance

Provision and Allowance for Credit Losses for Loans
Provision benefit for credit losses for loans for the first quarter of 2022 was $6.4 million, which was a decrease of $6.4 million from provision expense of $16,000 recorded in the first quarter of 2021. The provision benefit for the first quarter of 2022 was impacted by several factors, including:

• decrease in nonperforming loans of $32.5 million to $59.3 million or 0.58% of total loans compared to $91.9 million or 0.91% of total loans at March 31, 2021,
• nonpass loans declined to 6.3% of total loans compared to 11.5% of total loans at March 31, 2021,
• loans delinquent 30-89 days as a percent of total loans fell to 0.10% compared to 0.16% at March 31, 2021, and
• improved macroeconomic factors compared to the first quarter of 2021.

The allowance for credit losses for loans totaled $100.7 million and $110.1 million at March 31, 2022, and December 31, 2021, respectively. The following items have impacted the allowance for credit losses for loans for the three months ended March 31, 2022:

• Provision benefit for the three months ended March 31, 2022, totaled $6.4 million.
• Net charge offs of $3.0 million were recorded for the first three months of 2022.

Provision and Allowance for Credit Losses for Unfunded Commitments
The allowance for unfunded commitments totaled $16.1 million at March 31, 2022, which was an increase of $617,000 from $15.5 million at December 31, 2021. Unfunded commitments increased $300.1 million to $4.13 billion at March 31, 2022 compared to $3.83 billion at December 31, 2021.

Total Provision and Allowance for Lending Related Credit Losses
The total provision benefit for lending related credit losses was $5.7 million for the first quarter of 2022 compared to $645,000 for the first quarter of 2021. The total allowance for lending related credit losses was $116.8 million or 1.15% of total loans at March 31, 2022, compared to $125.6 million or 1.26% of total loans as of December 31, 2021.

Nonperforming Assets

Nonperforming assets decreased $11.1 million or 15% to $60.8 million or 0.32% of total assets at March 31, 2022, compared to $71.9 million or 0.37% of total assets at December 31, 2021. Nonperforming loans were $59.3 million or 0.58% of total loans at March 31, 2022, compared to $69.9 million or 0.70% of total loans at December 31, 2021. At March 31, 2022, loans delinquent 30-89 days were 0.10% of total loans compared to 0.07% of total loans at December 31, 2021.

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:

• 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.
• 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.
• 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.
• 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.

Conference Call Details
HTLF will host a conference call for shareholders, analysts and other interested parties at 5:00 p.m. EDT today. To join, please register in advance of the conference using the link provided below. Upon registering, participant dial-in numbers, Direct Event passcode and unique registrant ID will be provided. Direct Event online registration can be found at: http://www.directeventreg.com/registration/event/5974087. In the 10 minutes prior to the call start time, participants need to use the conference access information provided in the email received at the point of registering. A replay will be available until April 24, 2023, by logging on to www.htlf.com.

About HTLF
Heartland Financial USA, Inc., operating under the brand name HTLF, is a financial services company with assets of $19.24 billion. HTLF has banks serving communities in Arizona, California, Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Montana, New Mexico, Texas and Wisconsin. HTLF is committed to its core commercial business, supported by a strong retail operation, and provides a diversified line of financial services including treasury management, residential mortgage, wealth management, investment and insurance. Additional information is available at www.htlf.com.

Safe Harbor Statement
This release (including any information incorporated herein by reference) contains, and future oral and written statements of HTLF 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 HTLF'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 HTLF's operations or performance, and may be based upon beliefs, expectations and assumptions of HTLF's management. These forward-looking statements are generally identified by the use of the words such as "believe", "expect", "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 HTLF and its management. Although HTLF may make these statements based on management’s experience, beliefs, expectations, assumptions and best estimate of future events, the ability of HTLF 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 HTLF 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 HTLF’s Annual Report on Form 10-K for the year ended December 31, 2021, include, among others:

• Coronavirus Disease 2019 ("COVID-19") Pandemic Risks, including risks related to the ongoing COVID-19 pandemic and measures enacted by the U.S. federal and state governments and adopted by private businesses in response to the COVID-19 pandemic;
• Economic and Market Conditions Risks, including risks related to changes in the U.S. economy in general and in the local economies in which HTLF conducts its operations and future civil unrest, natural disasters, 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 and 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 and changes in monetary policy on our borrowings and net interest income;
• 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. In addition, many of these risks and uncertainties are currently amplified by and may continue to be amplified by the COVID-19 pandemic and the impact of varying governmental responses that affect HTLF’s customers and the economies where they operate. 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 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-

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
	For the Three Months Ended March 31,
		2022				2021
Interest Income
Interest and fees on loans	$	102,369			$	112,439
Interest on securities:
Taxable		32,620				30,443
Nontaxable		6,202				4,503
Interest on federal funds sold		—				1
Interest on deposits with other banks and short-term investments		71				66
Total Interest Income		141,262				147,452
Interest Expense
Interest on deposits		2,977				4,395
Interest on short-term borrowings		46				152
Interest on other borrowings		3,560				3,300
Total Interest Expense		6,583				7,847
Net Interest Income		134,679				139,605
Provision (benefit) for credit losses		(5,744	)			(648	)
Net Interest Income After Provision for Credit Losses		140,423				140,253
Noninterest Income
Service charges and fees		15,251				13,671
Loan servicing income		286				838
Trust fees		6,079				5,777
Brokerage and insurance commissions		869				853
Securities gains/(losses), net		2,872				(30	)
Unrealized gain/ (loss) on equity securities, net		(283	)			(110	)
Net gains on sale of loans held for sale		3,411				6,420
Valuation adjustment on servicing rights		1,658				917
Income on bank owned life insurance		524				829
Other noninterest income		3,902				1,152
Total Noninterest Income		34,569				30,317
Noninterest Expense
Salaries and employee benefits		66,174				59,062
Occupancy		7,362				7,918
Furniture and equipment		3,519				3,093
Professional fees		15,156				13,490
Advertising		1,555				1,469
Core deposit and customer relationship intangibles amortization		2,054				2,516
Other real estate and loan collection expenses, net		195				135
(Gain)/loss on sales/valuations of assets, net		46				194
Acquisition, integration and restructuring costs		576				2,928
Partnership investment in tax credit projects		77				35
Other noninterest expenses		14,083				11,583
Total Noninterest Expense		110,797				102,423
Income Before Income Taxes		64,195				68,147
Income taxes		14,329				15,333
Net Income		49,866				52,814
Preferred dividends		(2,013	)			(2,013	)
Net Income Available to Common Stockholders	$	47,853			$	50,801
Earnings per common share-diluted	$	1.12			$	1.20
Weighted average shares outstanding-diluted		42,540,953				42,335,747

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
	For the Quarter Ended
	3/31/2022				12/31/2021				9/30/2021				6/30/2021				3/31/2021
Interest Income
Interest and fees on loans	$	102,369			$	107,721			$	112,062			$	111,915			$	112,439
Interest on securities:
Taxable		32,620				30,637				32,384				31,546				30,443
Nontaxable		6,202				5,595				4,609				4,561				4,503
Interest on federal funds sold		—				—				—				—				1
Interest on deposits with other banks and short-term investments		71				86				132				60				66
Total Interest Income		141,262				144,039				149,187				148,082				147,452
Interest Expense
Interest on deposits		2,977				3,168				3,444				3,790				4,395
Interest on short-term borrowings		46				123				98				98				152
Interest on other borrowings		3,560				3,554				3,102				2,976				3,300
Total Interest Expense		6,583				6,845				6,644				6,864				7,847
Net Interest Income		134,679				137,194				142,543				141,218				139,605
Provision (benefit) for credit losses		(5,744	)			(5,313	)			(4,534	)			(7,080	)			(648	)
Net Interest Income After Provision for Credit Losses		140,423				142,507				147,077				148,298				140,253
Noninterest Income
Service charges and fees		15,251				15,349				15,551				15,132				13,671
Loan servicing income		286				781				784				873				838
Trust fees		6,079				6,380				6,221				6,039				5,777
Brokerage and insurance commissions		869				962				866				865				853
Securities gains/(losses), net		2,872				1,563				1,535				2,842				(30	)
Unrealized gain/ (loss) on equity securities, net		(283	)			(27	)			112				83				(110	)
Net gains on sale of loans held for sale		3,411				4,151				5,281				4,753				6,420
Valuation adjustment on servicing rights		1,658				502				195				(526	)			917
Income on bank owned life insurance		524				1,056				940				937				829
Other noninterest income		3,902				2,013				1,239				2,166				1,152
Total Noninterest Income		34,569				32,730				32,724				33,164				30,317
Noninterest Expense
Salaries and employee benefits		66,174				63,031				60,689				57,332				59,062
Occupancy		7,362				7,282				7,366				7,399				7,918
Furniture and equipment		3,519				3,364				3,365				3,501				3,093
Professional fees		15,156				17,631				17,242				16,237				13,490
Advertising		1,555				2,218				1,921				1,649				1,469
Core deposit and customer relationship intangibles amortization		2,054				2,169				2,295				2,415				2,516
Other real estate and loan collection expenses, net		195				363				78				414				135
(Gain)/loss on sales/valuations of assets, net		46				214				(3	)			183				194
Acquisition, integration and restructuring costs		576				1,989				204				210				2,928
Partnership investment in tax credit projects		77				2,549				2,374				1,345				35
Other noninterest expenses		14,083				14,576				15,096				12,691				11,583
Total Noninterest Expense		110,797				115,386				110,627				103,376				102,423
Income Before Income Taxes		64,195				59,851				69,174				78,086				68,147
Income taxes		14,329				10,271				13,250				16,481				15,333
Net Income		49,866				49,580				55,924				61,605				52,814
Preferred dividends		(2,013	)			(2,012	)			(2,013	)			(2,012	)			(2,013	)
Net Income Available to Common Stockholders	$	47,853			$	47,568			$	53,911			$	59,593			$	50,801
Earnings per common share-diluted	$	1.12			$	1.12			$	1.27			$	1.41			$	1.20
Weighted average shares outstanding-diluted		42,540,953				42,479,442				42,415,993				42,359,873				42,335,747

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
	As of
	3/31/2022				12/31/2021				9/30/2021				6/30/2021				3/31/2021
Assets
Cash and due from banks	$	198,559			$	163,895			$	192,247			$	208,702			$	198,177
Interest bearing deposits with other banks and short-term investments		406,343				271,704				135,158				240,426				269,685
Cash and cash equivalents		604,902				435,599				327,405				449,128				467,862
Time deposits in other financial institutions		2,894				2,894				3,138				3,138				3,138
Securities:
Carried at fair value		7,025,243				7,530,374				7,449,936				6,543,978				6,370,495
Held to maturity, at cost, less allowance for credit losses		81,785				84,709				85,354				85,439				85,293
Other investments, at cost		82,751				82,567				83,332				76,809				74,935
Loans held for sale		22,685				21,640				37,078				33,248				43,037
Loans:
Held to maturity		10,186,569				9,954,572				9,854,907				10,012,014				10,050,456
Allowance for credit losses		(100,716	)			(110,088	)			(117,533	)			(120,726	)			(130,172	)
Loans, net		10,085,853				9,844,484				9,737,374				9,891,288				9,920,284
Premises, furniture and equipment, net		213,752				215,827				221,996				226,358				225,047
Goodwill		576,005				576,005				576,005				576,005				576,005
Core deposit and customer relationship intangibles, net		30,934				32,988				35,157				37,452				39,867
Servicing rights, net		8,102				6,890				6,351				6,201				6,953
Cash surrender value on life insurance		192,267				191,722				190,576				189,619				188,521
Other real estate, net		1,422				1,927				4,744				6,314				6,236
Other assets		310,630				246,923				237,779				246,029				236,754
Total Assets	$	19,239,225			$	19,274,549			$	18,996,225			$	18,371,006			$	18,244,427
Liabilities and Equity
Liabilities
Deposits:
Demand	$	6,376,249			$	6,495,326			$	6,537,722			$	6,299,289			$	6,175,946
Savings		9,236,427				8,897,909				8,416,204				8,189,223				8,179,251
Time		1,054,008				1,024,020				1,068,317				1,126,606				1,203,854
Total deposits		16,666,684				16,417,255				16,022,243				15,615,118				15,559,051
Short-term borrowings		107,372				131,597				265,620				152,563				140,597
Other borrowings		372,290				372,072				371,765				271,244				349,514
Accrued expenses and other liabilities		154,245				171,447				164,345				172,295				139,058
Total Liabilities		17,300,591				17,092,371				16,823,973				16,211,220				16,188,220
Stockholders' Equity
Preferred equity		110,705				110,705				110,705				110,705				110,705
Common stock		42,370				42,275				42,250				42,245				42,174
Capital surplus		1,073,048				1,071,956				1,068,913				1,066,765				1,063,497
Retained earnings		999,432				962,994				926,834				883,484				833,171
Accumulated other comprehensive income (loss)		(286,921	)			(5,752	)			23,550				56,587				6,660
Total Equity		1,938,634				2,182,178				2,172,252				2,159,786				2,056,207
Total Liabilities and Equity	$	19,239,225			$	19,274,549			$	18,996,225			$	18,371,006			$	18,244,427

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
	3/31/2022				12/31/2021				9/30/2021				6/30/2021				3/31/2021
Average Balances
Assets	$	19,229,972			$	19,151,691			$	18,608,775			$	18,293,756			$	17,964,723
Loans, net of unearned		10,043,696				9,886,027				9,920,047				10,072,071				9,952,152
Deposits		16,459,378				16,265,476				15,817,778				15,576,345				15,044,561
Earning assets		17,757,167				17,681,917				17,123,824				16,819,978				16,460,124
Interest bearing liabilities		10,453,400				10,207,255				9,881,350				9,871,302				9,917,159
Common equity		2,003,499				2,061,973				2,072,593				1,980,904				1,963,674
Total stockholders' equity		2,114,204				2,172,678				2,183,298				2,091,609				2,074,379
Tangible common equity (non-GAAP)(1)		1,395,563				1,451,950				1,460,309				1,366,285				1,346,270
Key Performance Ratios
Annualized return on average assets		1.05	%			1.03	%			1.19	%			1.35	%			1.19	%
Annualized return on average common equity (GAAP)		9.69				9.15				10.32				12.07				10.49
Annualized return on average tangible common equity (non-GAAP)(1)		14.38				13.47				15.14				18.05				15.90
Annualized ratio of net charge-offs/(recoveries) to average loans		0.12				0.03				(0.05	)			0.12				0.06
Annualized net interest margin (GAAP)		3.08				3.08				3.30				3.37				3.44
Annualized net interest margin, fully tax-equivalent (non-GAAP)(1)		3.12				3.12				3.34				3.41				3.48
Efficiency ratio, fully tax-equivalent (non-GAAP)(1)		64.65				63.86				60.38				57.11				56.61

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE AND FULL TIME EQUIVALENT EMPLOYEE DATA
	As of and for the Quarter Ended
	3/31/2022				12/31/2021				9/30/2021				6/30/2021				3/31/2021
Common Share Data
Book value per common share	$	43.14			$	49.00			$	48.79			$	48.50			$	46.13
Tangible book value per common share (non-GAAP)(1)	$	28.82			$	34.59			$	34.33			$	33.98			$	31.53
Common shares outstanding, net of treasury stock		42,369,908				42,275,264				42,250,092				42,245,452				42,173,675
Tangible common equity ratio (non-GAAP)(1)		6.55	%			7.84	%			7.89	%			8.08	%			7.54	%
Other Selected Trend Information
Effective tax rate		22.32	%			17.16	%			19.15	%			21.11	%			22.50	%
Full time equivalent employees		2,208				2,249				2,163				2,091				2,131
Loans Held to Maturity
Commercial and industrial	$	2,818,700			$	2,645,085			$	2,538,369			$	2,518,908			$	2,421,260
Paycheck Protection Program ("PPP")		74,065				199,883				409,247				829,175				1,155,328
Owner occupied commercial real estate		2,266,076				2,240,334				2,135,227				1,940,134				1,837,559
Commercial and business lending		5,158,841				5,085,302				5,082,843				5,288,217				5,414,147
Non-owner occupied commercial real estate		2,161,761				2,010,591				2,020,487				1,987,369				1,967,183
Real estate construction		842,483				856,119				814,001				854,295				796,027
Commercial real estate lending		3,004,244				2,866,710				2,834,488				2,841,664				2,763,210
Total commercial lending		8,163,085				7,952,012				7,917,331				8,129,881				8,177,357
Agricultural and agricultural real estate		766,443				753,753				684,670				679,608				683,969
Residential mortgage		825,242				829,283				840,356				800,884				786,994
Consumer		431,799				419,524				412,550				401,641				402,136
Total loans held to maturity	$	10,186,569			$	9,954,572			$	9,854,907			$	10,012,014			$	10,050,456
Total unfunded loan commitments	$	4,130,316			$	3,830,219			$	3,583,417			$	3,433,062			$	3,306,042
(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
	3/31/2022				12/31/2021				9/30/2021				6/30/2021				3/31/2021
Allowance for Credit Losses-Loans
Balance, beginning of period	$	110,088			$	117,533			$	120,726			$	130,172			$	131,606
Provision (benefit) for credit losses		(6,361	)			(6,808	)			(4,448	)			(6,466	)			16
Charge-offs		(4,034	)			(1,953	)			(1,167	)			(3,497	)			(2,126	)
Recoveries		1,023				1,316				2,422				517				676
Balance, end of period	$	100,716			$	110,088			$	117,533			$	120,726			$	130,172
Allowance for Unfunded Commitments
Balance, beginning of period	$	15,462			$	13,967			$	14,002			$	14,619			$	15,280
Provision (benefit) for credit losses		617				1,495				(35	)			(617	)			(661	)
Balance, end of period	$	16,079			$	15,462			$	13,967			$	14,002			$	14,619
Allowance for lending related credit losses	$	116,795			$	125,550			$	131,500			$	134,728			$	144,791
Provision for Credit Losses
Provision (benefit) for credit losses-loans	$	(6,361	)		$	(6,808	)		$	(4,448	)		$	(6,466	)		$	16
Provision (benefit) for credit losses-unfunded commitments		617				1,495				(35	)			(617	)			(661	)
Provision (benefit) for credit losses-held to maturity securities		—				—				(51	)			3				(3	)
Total provision (benefit) for credit losses	$	(5,744	)		$	(5,313	)		$	(4,534	)		$	(7,080	)		$	(648	)
Asset Quality
Nonaccrual loans	$	59,100			$	69,369			$	82,375			$	85,268			$	91,718
Loans past due ninety days or more		246				550				861				97				171
Other real estate owned		1,422				1,927				4,744				6,314				6,236
Other repossessed assets		34				43				166				50				239
Total nonperforming assets	$	60,802			$	71,889			$	88,146			$	91,729			$	98,364
Performing troubled debt restructured loans	$	882			$	817			$	1,817			$	2,122			$	2,394
Nonperforming Assets Activity
Balance, beginning of period	$	71,889			$	88,146			$	91,729			$	98,364			$	94,970
Net loan (charge offs)/recoveries		(3,011	)			(637	)			1,255				(2,980	)			(1,450	)
New nonperforming loans		1,575				5,886				6,908				7,989				14,936
Reduction of nonperforming loans(1)		(8,448	)			(18,429	)			(8,581	)			(10,948	)			(8,884	)
Net OREO/repossessed assets sales proceeds and losses		(1,203	)			(3,077	)			(3,165	)			(696	)			(1,208	)
Balance, end of period	$	60,802			$	71,889			$	88,146			$	91,729			$	98,364
Asset Quality Ratios
Ratio of nonperforming loans to total loans		0.58	%			0.70	%			0.84	%			0.85	%			0.91	%
Ratio of nonperforming loans and performing trouble debt restructured loans to total loans		0.59				0.71				0.86				0.87				0.94
Ratio of nonperforming assets to total assets		0.32				0.37				0.46				0.50				0.54
Annualized ratio of net loan charge-offs/(recoveries) to average loans		0.12				0.03				(0.05	)			0.12				0.06
Allowance for loan credit losses as a percent of loans		0.99				1.11				1.19				1.21				1.30
Allowance for lending related credit losses as a percent of loans		1.15				1.26				1.33				1.35				1.44
Allowance for loan credit losses as a percent of nonperforming loans		169.71				157.45				141.20				141.42				141.66
Loans delinquent 30-89 days as a percent of total loans		0.10				0.07				0.12				0.17				0.16
(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
	March 31, 2022										December 31, 2021										March 31, 2021
	Average Balance				Interest			Rate			Average Balance				Interest			Rate			Average Balance				Interest			Rate
Earning Assets
Securities:
Taxable	$	6,501,664			$	32,620		2.03	%		$	6,730,511			$	30,637		1.81	%		$	5,693,097			$	30,443		2.17	%
Nontaxable(1)		1,106,951				7,851		2.88				964,712				7,082		2.91				730,565				5,700		3.16
Total securities		7,608,615				40,471		2.16				7,695,223				37,719		1.94				6,423,662				36,143		2.28
Interest on deposits with other banks and short-term investments		216,451				71		0.13				218,809				86		0.16				204,488				66		0.13
Federal funds sold		11				—		—				—				—		—				14,020				1		0.03
Loans:(2)
Commercial and industrial(1)		2,744,383				27,053		4.00				2,614,685				26,465		4.02				2,500,250				28,222		4.58
PPP loans		132,050				4,323		13.28				302,829				8,106		10.62				992,517				10,149		4.15
Owner occupied commercial real estate		2,243,522				21,278		3.85				2,166,768				22,007		4.03				1,778,829				19,565		4.46
Non-owner occupied commercial real estate		2,060,548				21,163		4.17				1,996,186				21,744		4.32				1,937,564				22,121		4.63
Real estate construction		847,250				9,276		4.44				837,716				9,390		4.45				806,315				9,698		4.88
Agricultural and agricultural real estate		745,348				7,006		3.81				697,521				7,089		4.03				681,279				8,051		4.79
Residential mortgage		843,881				8,085		3.89				853,208				8,615		4.01				849,923				9,830		4.69
Consumer		426,714				4,655		4.42				417,114				4,793		4.56				405,475				5,367		5.37
Less: allowance for credit losses-loans		(111,606	)			—		—				(118,142	)			—		—				(134,198	)			—		—
Net loans		9,932,090				102,839		4.20				9,767,885				108,209		4.40				9,817,954				113,003		4.67
Total earning assets		17,757,167				143,381		3.27	%			17,681,917				146,014		3.28	%			16,460,124				149,213		3.68	%
Nonearning Assets		1,472,805										1,469,774										1,504,599
Total Assets	$	19,229,972									$	19,151,691									$	17,964,723
Interest Bearing Liabilities
Savings	$	8,889,950			$	2,394		0.11	%		$	8,609,596			$	2,160		0.10	%		$	8,032,308			$	2,430		0.12	%
Time deposits		1,071,675				583		0.22				1,048,785				1,008		0.38				1,233,682				1,965		0.65
Short-term borrowings		119,588				46		0.16				176,956				123		0.28				240,037				152		0.26
Other borrowings		372,187				3,560		3.88				371,918				3,554		3.79				411,132				3,300		3.26
Total interest bearing liabilities		10,453,400				6,583		0.26	%			10,207,255				6,845		0.27	%			9,917,159				7,847		0.32	%
Noninterest Bearing Liabilities
Noninterest bearing deposits		6,497,753										6,607,095										5,778,571
Accrued interest and other liabilities		164,615										164,663										194,614
Total noninterest bearing liabilities		6,662,368										6,771,758										5,973,185
Equity		2,114,204										2,172,678										2,074,379
Total Liabilities and Equity	$	19,229,972									$	19,151,691									$	17,964,723
Net interest income, fully tax-equivalent (non-GAAP)(1)(3)					$	136,798									$	139,169									$	141,366
Net interest spread(1)								3.01	%									3.01	%									3.36	%
Net interest income, fully tax-equivalent (non-GAAP)(1)(3) to total earning assets								3.12	%									3.12	%									3.48	%
Interest bearing liabilities to earning assets		58.87	%									57.73	%									60.25	%
(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
	3/31/2022			12/31/2021			9/30/2021			6/30/2021			3/31/2021
Total Assets
Arizona Bank & Trust	$	1,903,616		$	1,969,184		$	1,808,943		$	1,645,816		$	1,614,740
Bank of Blue Valley		1,419,999			1,441,980			1,460,751			1,419,003			1,425,434
Citywide Banks		2,647,931			2,696,695			2,685,554			2,611,842			2,632,199
Dubuque Bank and Trust Company		2,292,161			2,235,630			1,968,612			1,990,040			1,932,234
First Bank & Trust		2,896,897			2,878,173			2,855,671			2,882,969			2,991,053
Illinois Bank & Trust		1,708,750			1,686,038			1,680,558			1,671,240			1,584,561
Minnesota Bank & Trust		877,851			865,825			872,291			955,638			995,692
New Mexico Bank & Trust		2,578,150			2,623,597			2,586,951			2,494,257			2,356,918
Premier Valley Bank		1,230,458			1,224,396			1,198,540			1,126,807			1,062,607
Rocky Mountain Bank		716,300			713,930			718,956			646,821			620,800
Wisconsin Bank & Trust		1,210,498			1,224,689			1,209,954			1,252,096			1,264,009
Total Deposits
Arizona Bank & Trust	$	1,732,187		$	1,768,793		$	1,617,732		$	1,450,248		$	1,453,888
Bank of Blue Valley		1,185,749			1,179,294			1,192,868			1,168,617			1,178,114
Citywide Banks		2,275,838			2,291,912			2,282,703			2,174,237			2,231,320
Dubuque Bank and Trust Company		1,793,770			1,750,071			1,705,753			1,471,564			1,565,782
First Bank & Trust		2,454,620			2,397,350			2,367,353			2,361,391			2,427,920
Illinois Bank & Trust		1,575,274			1,496,262			1,509,847			1,512,106			1,426,426
Minnesota Bank & Trust		752,210			719,489			734,292			762,549			813,693
New Mexico Bank & Trust		2,332,574			2,308,939			2,206,099			2,195,838			2,077,304
Premier Valley Bank		1,074,076			1,051,286			988,579			963,459			896,715
Rocky Mountain Bank		648,497			640,757			602,155			568,961			549,894
Wisconsin Bank & Trust		1,063,490			1,070,161			1,048,367			1,093,119			1,067,735

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
	3/31/2022				12/31/2021				9/30/2021				6/30/2021				3/31/2021
Reconciliation of Annualized Return on Average Tangible Common Equity (non-GAAP)
Net income available to common stockholders (GAAP)	$	47,853			$	47,568			$	53,911			$	59,593			$	50,801
Plus core deposit and customer relationship intangibles amortization, net of tax(1)		1,623				1,713				1,814				1,907				1,988
Net income available to common stockholders excluding intangible amortization (non-GAAP)	$	49,476			$	49,281			$	55,725			$	61,500			$	52,789
Average common equity (GAAP)	$	2,003,499			$	2,061,973			$	2,072,593			$	1,980,904			$	1,963,674
Less average goodwill		576,005				576,005				576,005				576,005				576,005
Less average core deposit and customer relationship intangibles, net		31,931				34,018				36,279				38,614				41,399
Average tangible common equity (non-GAAP)	$	1,395,563			$	1,451,950			$	1,460,309			$	1,366,285			$	1,346,270
Annualized return on average common equity (GAAP)		9.69	%			9.15	%			10.32	%			12.07	%			10.49	%
Annualized return on average tangible common equity (non-GAAP)		14.38	%			13.47	%			15.14	%			18.05	%			15.90	%
Reconciliation of Annualized Net Interest Margin, Fully Tax-Equivalent (non-GAAP)
Net Interest Income (GAAP)	$	134,679			$	137,194			$	142,543			$	141,218			$	139,605
Plus tax-equivalent adjustment(1)		2,119				1,975				1,714				1,762				1,761
Net interest income, fully tax-equivalent (non-GAAP)	$	136,798			$	139,169			$	144,257			$	142,980			$	141,366
Average earning assets	$	17,757,167			$	17,681,917			$	17,123,824			$	16,819,978			$	16,460,124
Annualized net interest margin (GAAP)		3.08	%			3.08	%			3.30	%			3.37	%			3.44	%
Annualized net interest margin, fully tax-equivalent (non-GAAP)		3.12				3.12				3.34				3.41				3.48
Net purchase accounting discount amortization on loans included in annualized net interest margin		0.05				0.05				0.08				0.09				0.12

Reconciliation of Tangible Book Value Per Common Share (non-GAAP)
Common equity (GAAP)	$	1,827,929			$	2,071,473			$	2,061,547			$	2,049,081			$	1,945,502
Less goodwill		576,005				576,005				576,005				576,005				576,005
Less core deposit and customer relationship intangibles, net		30,934				32,988				35,157				37,452				39,867
Tangible common equity (non-GAAP)	$	1,220,990			$	1,462,480			$	1,450,385			$	1,435,624			$	1,329,630
Common shares outstanding, net of treasury stock		42,369,908				42,275,264				42,250,092				42,245,452				42,173,675
Common equity (book value) per share (GAAP)	$	43.14			$	49.00			$	48.79			$	48.50			$	46.13
Tangible book value per common share (non-GAAP)	$	28.82			$	34.59			$	34.33			$	33.98			$	31.53
Reconciliation of Tangible Common Equity Ratio (non-GAAP)
Tangible common equity (non-GAAP)	$	1,220,990			$	1,462,480			$	1,450,385			$	1,435,624			$	1,329,630
Total assets (GAAP)	$	19,239,225			$	19,274,549			$	18,996,225			$	18,371,006			$	18,244,427
Less goodwill		576,005				576,005				576,005				576,005				576,005
Less core deposit and customer relationship intangibles, net		30,934				32,988				35,157				37,452				39,867
Total tangible assets (non-GAAP)	$	18,632,286			$	18,665,556			$	18,385,063			$	17,757,549			$	17,628,555
Tangible common equity ratio (non-GAAP)		6.55	%			7.84	%			7.89	%			8.08	%			7.54	%
(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
	3/31/2022				12/31/2021				9/30/2021				6/30/2021				3/31/2021
Net interest income (GAAP)	$	134,679			$	137,194			$	142,543			$	141,218			$	139,605
Tax-equivalent adjustment(1)		2,119				1,975				1,714				1,762				1,761
Fully tax-equivalent net interest income		136,798				139,169				144,257				142,980				141,366
Noninterest income		34,569				32,730				32,724				33,164				30,317
Securities (gains)/losses, net		(2,872	)			(1,563	)			(1,535	)			(2,842	)			30
Unrealized (gain)/loss on equity securities, net		283				27				(112	)			(83	)			110
Valuation adjustment on servicing rights		(1,658	)			(502	)			(195	)			526				(917	)
Adjusted revenue (non-GAAP)	$	167,120			$	169,861			$	175,139			$	173,745			$	170,906
Total noninterest expenses (GAAP)	$	110,797			$	115,386			$	110,627			$	103,376			$	102,423
Less:
Core deposit and customer relationship intangibles amortization		2,054				2,169				2,295				2,415				2,516
Partnership investment in tax credit projects		77				2,549				2,374				1,345				35
(Gain)/loss on sales/valuation of assets, net		46				214				(3	)			183				194
Acquisition, integration and restructuring costs		576				1,989				204				210				2,928
Adjusted noninterest expenses (non-GAAP)	$	108,044			$	108,465			$	105,757			$	99,223			$	96,750
Efficiency ratio, fully tax-equivalent (non-GAAP)		64.65	%			63.86	%			60.38	%			57.11	%			56.61	%
Acquisition, integration and restructuring costs
Salaries and employee benefits	$	340			$	—			$	—			$	44			$	534
Occupancy		—				—				—				1				9
Furniture and equipment		—				—				7				41				607
Professional fees		236				1,989				145				63				670
Advertising		—				—				11				6				156
(Gain)/loss on sales/valuations of assets, net		—				—				39				—				—
Other noninterest expenses		—				—				2				55				952
Total acquisition, integration and restructuring costs	$	576			$	1,989			$	204			$	210			$	2,928
After tax impact on diluted earnings per common share(1)	$	0.01			$	0.05			$	—			$	—			$	0.05
(1) Computed on a tax-equivalent basis using an effective tax rate of 21%.

CONTACT:
Bryan R. McKeag
Executive Vice President
Chief Financial Officer
(563) 589-1994
BMcKeag@htlf.com

 

FAQ

What were the key financial results for HTLF in Q1 2022?

HTLF reported a net income of $47.9 million, diluted earnings per share of $1.12, and a net interest income of $134.7 million.

How did HTLF's loan growth perform in Q1 2022?

HTLF experienced a loan growth of $357.8 million, or 4%, excluding Paycheck Protection Program loans.

What is the expected benefit from HTLF's bank charter consolidation?

The consolidation is expected to generate approximately $20 million in financial benefits upon completion.

What were the noninterest income changes for HTLF in Q1 2022?

Noninterest income increased by 14% to $34.6 million, driven by service charges and credit card revenue.