charge-offs (recoveries) to average loans 0.99 0.23 0.08 0.01 0.12 Allowance for loan credit losses as a percent of loans 0.93 1.09 1.06 1.02 0.93 Allowance for lending related credit losses as a percent of loans 1.02 1.21 1.18 1.15 1.08 Allowance for loan credit losses as a percent of nonperforming loans 152.68 122.23 129.89 125.15 212.70 Loans delinquent 30-89 days as a percent of total loans 0.26 0.25 0.31 0.09 0.12 (1) Includes principal reductions, transfers to performing status and transfers to OREO. HEARTLAND FINANCIAL USA, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) DOLLARS IN THOUSANDS ----------------------------------------------------------------------------------------------------------------------------------- For the Quarter Ended ------------------------------------------------------------------------------------------------------------- September 30, 2024 June 30, 2024 September 30, 2023 ----------------------------------- ----------------------------------- ----------------------------------- Average Average Average Balance Interest Rate Balance Interest Rate Balance Interest Rate -------------------- --------------- -------- -------- --------------- -------- -------- --------------- -------- -------- Earning Assets Securities: Taxable $ 4,254,529 $ 51,116 4.78% $ 4,490,407 $ 47,381 4.24% $ 5,726,057 $ 54,800 3.80% Nontaxable(1) 768,483 7,313 3.79 759,234 7,383 3.91 881,162 8,085 3.64 ---------- ------- ---- ---------- ------- ---- ---------- ------- ---- Total securities 5,023,012 58,429 4.63 5,249,641 54,764 4.20 6,607,219 62,885 3.78 ---------- ------- ---- ---------- ------- ---- ---------- ------- ---- Interest on deposits with other banks and short-term investments 355,394 4,193 4.69 194,824 3,045 6.29 142,301 1,651 4.60 Federal funds sold -- -- -- -- -- -- 152 3 7.83 ---------- ------- ---- ---------- ------- ---- ---------- ------- ---- Loans:(2) Commercial and industrial(1) 3,531,206 65,972 7.43 3,638,004 69,469 7.68 3,610,677 63,001 6.92 PPP loans 1,759 5 1.13 2,242 7 1.26 3,948 11 1.11 Owner occupied commercial real estate 2,527,006 35,189 5.54 2,615,504 37,028 5.69 2,412,501 30,127 4.95 Non-owner occupied commercial real estate 2,474,036 39,536 6.36 2,519,346 39,272 6.27 2,586,011 38,779 5.95 Real estate construction 1,106,387 22,878 8.23 1,093,399 21,770 8.01 1,027,544 19,448 7.51 Agricultural and agricultural real estate 757,745 11,536 6.06 879,707 13,390 6.12 822,957 12,582 6.07 Residential real estate 725,901 9,110 4.99 776,821 9,454 4.89 827,402 9,482 4.55 Consumer 460,959 8,956 7.73 485,266 9,421 7.81 509,024 9,615 7.49 Less: allowance for credit losses (125,274) -- -- (123,319) -- -- (110,726) -- -- ---------- ------- ---- ---------- ------- ---- ---------- ------- ---- Net loans 11,459,725 193,182 6.71 11,886,970 199,811 6.76 11,689,338 183,045 6.21 ---------- ------- ---- ---------- ------- ---- ---------- ------- ---- Total earning assets 16,838,131 255,804 6.04% 17,331,435 257,620 5.98% 18,439,010 247,584 5.33% ---------- ------- ---- ---------- ------- ---- ---------- ------- ---- Nonearning Assets 1,601,779 1,711,927 1,768,910 ---------- ---------- ---------- Total Assets $18,439,910 $19,043,362 $20,207,920 ========== ========== ========== Interest-bearing Liabilities Savings $ 8,842,494 $ 59,307 2.67% $ 8,834,746 $ 55,440 2.52% $ 8,737,581 $ 49,195 2.23% Time deposits 2,189,861 23,669 4.30 2,372,653 25,059 4.25 3,945,371 43,549 4.38 Borrowings 580,707 7,378 5.05 881,738 10,825 4.94 103,567 1,167 4.47 Term debt 373,158 5,543 5.91 372,820 5,564 6.00 372,112 5,765 6.15 ---------- ------- ---- ---------- ------- ---- ---------- ------- ---- Total interest-bearing liabilities 11,986,220 95,897 3.18% 12,461,957 96,888 3.13% 13,158,631 99,676 3.01% ---------- ------- ---- ---------- ------- ---- ---------- ------- ---- Noninterest-bearing Liabilities Noninterest-bearing deposits 4,116,589 4,355,521 4,824,861 Accrued interest and other liabilities 264,062 251,943 366,905 ---------- ---------- ---------- Total noninterest-bearing liabilities 4,380,651 4,607,464 5,191,766 ---------- ---------- ---------- Stockholders' Equity 2,073,039 1,973,941 1,857,523 ---------- ---------- ---------- Total Liabilities and Stockholders' Equity $18,439,910 $19,043,362 $20,207,920 ========== ========== ========== Net interest income, fully tax-equivalent (non-GAAP)(1)(3) $159,907 $160,732 $147,908 ======= ======= ======= Net interest spread(1) 2.86% 2.85% 2.32% ==== ==== ==== Net interest income, fully tax-equivalent (non-GAAP)(1)(3) to total earning assets 3.78% 3.73% 3.18% Interest-bearing liabilities to earning assets 71.18% 71.90% 71.36% (1) Computed on a tax-equivalent basis using an effective tax rate of 21%. (2) Nonaccrual loans and loans held for sale are included in the average loans outstanding. (3) Refer to "Non-GAAP Measures" in this earnings release for additional information on the usage and presentation of these non-GAAP measures, and refer to these financial tables for the reconciliations to the most directly comparable GAAP measures. HEARTLAND FINANCIAL USA, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) DOLLARS IN THOUSANDS ---------------------------------------------------------------------------------------------- For the Nine Months Ended ------------------------------------------------------------------------ September 30, 2024 September 30, 2023 ----------------------------------- ----------------------------------- Average Average Balance Interest Rate Balance Interest Rate -------------------- --------------- -------- -------- --------------- -------- -------- Earning Assets Securities: Taxable $ 4,469,258 $145,511 4.35% $ 5,927,026 $168,948 3.81% Nontaxable(1) 768,782 22,079 3.84 899,613 23,611 3.51 ---------- ------- ---- ---------- ------- ---- Total securities 5,238,040 167,590 4.27 6,826,639 192,559 3.77 ---------- ------- ---- ---------- ------- ----
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October 29, 2024 16:10 ET (20:10 GMT)
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