HEARTLAND FINANCIAL USA, INC. ("HTLF") REPORTS RECORD QUARTERLY RESULTS AS OF MARCH 31, 2021

Rhea-AI Summary

HTLF reported a record net income of $50.8 million for Q1 2021, a 153% increase from $20.0 million in Q1 2020. Diluted earnings per share rose to $1.20, up 122% year-over-year. The company's net interest income also surged to $139.6 million, a 24% increase from the prior year. Key metrics include an annualized net charge-off ratio of 0.06% and nonperforming assets at 0.54%.

HTLF's efficiency ratio improved to 56.61% from 61.82% year-over-year, reflecting enhanced operational performance.

Positive

• Record net income of $50.8 million, up 153% from $20.0 million YOY.
• Diluted earnings per share increased to $1.20, a 122% rise from the previous year.
• Net interest income rose to $139.6 million, representing a 24% increase YOY.
• Improved efficiency ratio of 56.61%, down from 61.82% YOY.

Negative

• None.

Dubuque, IA, April 26, 2021 (GLOBE NEWSWIRE) --

Highlights and Developments

• Record net income available to common stockholders of $50.8 million compared to $20.0 million for the first quarter of 2020, an increase of $30.8 million or 153%
• Diluted earnings per common share of $1.20 compared to $0.54 for the first quarter of the prior year, an increase of $0.66 or 122%
• Annualized net charge off ratio of 0.06%, nonperforming assets to total assets of 0.54%, and 30-89 day loan delinquencies of 0.16%
• Net interest income of $139.6 million compared to $112.5 million for the first quarter of 2020, an increase of $27.1 million or 24%
• Efficiency ratio (non-GAAP)¹ of 56.61% compared to 61.82% for the first quarter of 2020
• Completed the AimBank systems conversion on February 19, 2021
• Announced a branding change on April 14, 2021 from Heartland Financial to HTLF
  

	Three Months Ended March 31,
	2021				2020
Net income available to common stockholders (in millions)	$	50.8			$	20.0
Diluted earnings per common share	1.20				0.54
Return on average assets	1.19		%		0.61		%
Return on average common equity	10.49				4.98
Return on average tangible common equity (non-GAAP)(1)	15.90				8.00
Net interest margin	3.44				3.81
Net interest margin, fully tax-equivalent (non-GAAP)(1)	3.48				3.84
Efficiency ratio, fully-tax equivalent (non-GAAP)(1)	56.61				61.82

(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 an excellent start in 2021 with record quarterly net income available to common stockholders of $50.8 million. The strong quarterly results were driven by increased net interest income, reduced provision for credit losses and an improved efficiency ratio."

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

Complete Release CLICK HERE

About Heartland Financial
Heartland Financial USA, Inc., operating under the brand name HTLF, is a financial services company with assets of $18.24 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 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), and future oral and written statements of the company and its management, may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the business, financial condition, results of operations, plans, objectives and future performance of HTLF. Any statements about the company's expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. Forward-looking statements may include information about possible or assumed future results of the company's operations or performance. These forward-looking statements are generally identified by the use of the words such as "believe", "expect", "intent", "anticipate", "plan", "intend", "estimate", "project", "may", "will", "would", "could", "should", "may", "view", "opportunity", "potential", or similar or negative expressions of these words or phrases that are used in this release, and future oral and written statements of the company and its management. Although the company may make these statements based on management’s experience, beliefs, expectations, assumptions and best estimate of future events, the ability of the company to predict results or the actual effect or outcomes of plans or strategies is inherently uncertain, and there may be events or factors that management has not anticipated. Therefore, the accuracy and achievement of such forward-looking statements and estimates are subject to a number of risks, many of which are beyond the ability of management to control or predict, that could cause actual results to differ materially from those in its forward-looking statements. These factors, which the company currently believes could have a material effect on its operations and future prospects, are detailed below and in the risk factors in HTLF's reports filed with the Securities and Exchange Commission ("SEC"), including the "Risk Factors" section under Item 1A of Part I of the company’s Annual Report on Form 10-K for the year ended December 31, 2020, include, among others: • 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 competitive forces impacting our business and strategic acquisition risks; • 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 the company’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 the company’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. The company does not undertake and specifically disclaims any obligation to publicly release the results of any revisions which may be made to or correct or update any forward-looking statement to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events or to otherwise update any statement in light of new information or future events. Further information concerning HTLF and its business, including additional factors that could materially affect the company’s financial results, is included in the company’s filings with the SEC.

Contact
EVP, Chief Financial Officer
Bryan R. McKeag
BMcKeag@htlf.com
563.589.1994

FAQ

What were HTLF's Q1 2021 earnings results?

HTLF reported Q1 2021 net income of $50.8 million, with diluted earnings per share of $1.20.

How much did net interest income increase for HTLF in Q1 2021?

Net interest income for HTLF increased to $139.6 million in Q1 2021, a 24% increase compared to the previous year.

What is the efficiency ratio reported by HTLF for Q1 2021?

HTLF's efficiency ratio improved to 56.61% for Q1 2021, down from 61.82% in the same quarter the previous year.

What changes occurred in HTLF's branding recently?

HTLF announced a branding change from Heartland Financial to HTLF on April 14, 2021.