EX-99 2 ex99invprof2q05.htm EXHIBIT 99 INVESTMENT PROFILE 2QTR 2005 Exhibit 99 investment profile 2qtr 2005
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Volume 13, Issue 2
Second Quarter 2005
 
INVESTMENT PROFILE
is published quarterly to keep current and potential Heartland stockholders informed of company activities and to provide an overview of the Company’s current financial performance.
 
Community Banking
 
Dubuque Bank & Trust
Galena State Bank
First Community Bank
Riverside
Community Bank
Wisconsin
Community Bank
New Mexico
Bank & Trust
Arizona Bank & Trust
Rocky Mountain Bank
 
Consumer Finance
 
Citizens Finance
 
Investment Banking
 
HTLF Capital Corp.
 
Vehicle Leasing and
Fleet Management
 
ULTEA
 
Contact
 
John K. Schmidt
(563) 589-1994
jschmidt@htlf.com
 
Highlights
 
nNet Income improved by 18% over second quarter 2004.
 
n Only one month of Rocky Mountain Bank's earnings was
included in the second-quarter 2004 results as the acquisition was completed on June 1, 2004.  Its contribution to net income was $527,000 during the second quarter of 2005 compared to $260,000 during the second quarter of 2004.
 
n Net interest income increased 34% during the second quarter of 2005, primarily due to the 22% growth in average earning assets, of which half resulted from internal growth and the other half from the acquisition of Rocky Mountain Bank.
 
n Net interest margin as a percentage of average earning assets improved to 4.03% during the second quarter of 2005 compared to 3.97% during the first quarter of 2005 and 3.71% for the second quarter of 2004.
 
n Total loans and leases increased $72 million or 4% since March 31, 2005.  Loan demand picked up during the second quarter, and management remains optimistic that it will continue during the remaining quarters of 2005.
 
n Total deposits increased $62 million or 3% since March 31, 2005.  Over half of this growth occurred at our three banks in our Western markets.
 
n The development of Heartland's branch network continued during the second quarter.  Arizona Bank & Trust opened its third branch location at 2036 E. Camelback Road in Phoenix on May 16.  Construction is underway on:
 
n three new sites in Albuquerque, New Mexico, under the New Mexico Bank & Trust umbrella.
 
n one new site in Kalispell, Montana under the Rocky Mountain Bank umbrella and
 
n one new site in Rockford, Illinois, under the Riverside Community Bank umbrella.          
    
 
Investor Information
 
Heartland’s common stock is traded on the NASDAQ® National Market System under the symbol “HTLF.”  Heartland is its own stock transfer agent.Any correspondence may be directed to Lois K. Pearce, Corporate Secretary. Primary market makers are:
 
■ Howe Barnes Investments, Inc., 222 S. Riverside Plaza, 7th Floor, Chicago, IL 60606-5808, Phone 800-800-4693
 
■ FTN Financial Securities Corp., 350 Madison Avenue, 19th Floor, New York, NY 10017, Phone 866-268-6529
 
Additional information about Heartland is available through our website at www.htlf.com
 
Stock Value Per Share
 
Closing Price (6/30/05): $19.53
52-Week Price Range (6/30/05): $16.78-$21.30
Book Value (6/30/05): $11.11
Price/Book Value (6/30/05): 175.79%
Current Dividend: $0.32
Yield: 1.64%
PE Ratio - Diluted (6/30/05): 15.258
Shares Outstanding (6/30/05): 16,399,470
 
 
 
This newsletter may contain forward-looking statements. Actual events and results may differ significantly from those described in such forward-looking statements, due to changes in the economy, interest rates or other factors. For additional information about these factors, please review our filings with the Securities and Exchange Commission.Heartland undertakes no obligation to update any statement in this newsletter in light of new information or future events.


 
 
Financial Highlights (Dollars in thousands, except per share data)
 
 
For the Qtrs Ended June 30,
 For the Years Ended December 31,
 
 
 2005
 
2004
 
 
 2004
 
 2003
 
 2002
    
Income Statement Data
 
 
 
 
 
 
 
 
 
 
 
    
   Net Interest income
$
 45,108
 $
34,130
 
$
 77,130
$
 61,190
$
 57,680
    
   Provision for loan losses
 
3,000
 
 2,347
 
 
 4,846
 
 4,183
 
 3,553
    
   Noninterest income
 
 19,755
 
 19,309
 
 
 37,841
 
 36,541
 
 30,645
    
   Noninterest expense
 
 46,210
 
 37,228
 
 
 81,936
 
 67,692
 
 60,659
    
   Income tax expense
 
 4,983
 
4,223
 
 
 7,937
 
 8,137
 
 7,523
    
   Income from continuing operations
 
 10,670
 
9,641
 
 
 20,252
 
 17,719
 
 16,590
    
   Income from operations of discontinued branch
 
 -
 
 -
 
 
 -
 
 -
 
 2,277
    
   Net income
 
 10,670
 
9,641
 
 
 20,252
 
 17,719
 
 18,867
    
 
Ratios
 
 
 
 
 
 
 
 
 
 
 
 
   Return on average equity
 
 12.09
%
13.22
%
 
12.82
%
 13.46
%
16.44 
 %
   Return on average assets
 
 0.81
 
0.92
 
 
 0.87
 
 0.95
 
1.13
 
   Net interest margin (tax equivalent)(1)
 
4.00
 
3.82
 
 
 3.87
 
 3.80
 
 4.04
 
   Allowance as a percent of total loans
 
 1.44
 
 1.42
 
 
 1.41
 
1.40
 
 1.40
 
   Earnings per share - diluted
 $
 0.64
$
 0.62
 
 $
1.26
 $
 1.16
 $
1.28
 
   Earnings per share from continuing operations-diluted(2)
 
 0.64
 
0.62
 
 
1.26
 
 1.16
 
 1.12
 
   Dividends per share
 
0.16
 
0.16
 
 
0.32
 
0.27
 
 0.27
 
   Book value per share
 
 11.11
 
 9.98
 
 
 10.69
 
 9.29
 
8.40
 
 
Balance Sheet Data
 
 
 
 
 
 
 
 
 
 
 
 
   Total assets
$
2,712,028
 $
2,476,836
 
$
 2,629,055
$
 2,018,366
$
 1,785,979
 
   Total loans and leases, net of unearned
 
1,854,926
 
1,689,109
 
 
 1,772,954
 
 1,322,549
 
 1,152,069
 
   Total deposits
 
 2,052,413
 
 1,829,878
 
 
 1,983,846
 
 1,492,488
 
 1,337,985
 
   Stockholders' equity
 
182,246
 
164,208
 
 
175,782
 
 140,923
 
 124,041
 
(1)Tax-equivalent basis is calculated using an effective tax rate of 35%. / (2)Excludes discontinued operations of our Eau Claire branch.
 
Total Assets (In thousands)            Total Loans (In thousands)                Total Deposits (In thousands)
[GRAPHS DEPICTING VALUES IN THE TABLE ABOVE]
 
Earnings Per Share from Continuing Operations - Diluted   Net Interest Margin (Tax equivalent)  Allowance as Percent of Total Loans
[GRAPHS DEPICTING VALUES IN THE TABLE ABOVE]