EX-99 2 ex99102907.htm EXHIBIT 99 3Q 2007 PRESS RELEASE ex99102907.htm

 
 
CONTACT:
John K. Schmidt
Chief Operating Officer
Chief Financial Officer
(563) 589-1994
jschmidt@htlf.com
 

 
FOR IMMEDIATE RELEASE
MONDAY, OCTOBER 29, 2007
 

 
HEARTLAND FINANCIAL USA, INC. REPORTS THIRD QUARTER 2007 EARNINGS

Highlights

§  
Income from continuing operations increased 5 percent over third quarter 2006
§  
Year-to-date noninterest income grew by 10 percent over year-to-date 2006
§  
Total loans increased $152.0 million or 7 percent compared to one year ago
§  
Total deposits increased $130 million or 6 percent compared to one year ago
§  
Announced intention to open a de novo bank in Minnesota


     
Quarter Ended
 September 30,
      
Nine Months Ended
September 30,
  
     
2007
      
2006
      
2007
      
2006
  
Net income (in millions)
  
$
6.9
    
$
6.9
    
$
18.9
    
$
17.6
  
Income from continuing operations (in millions)
    
6.9
      
6.6
      
17.2
      
16.8
  
Diluted earnings per share
    
0.42
      
0.41
      
1.14
      
1.05
  
Diluted earnings per share from continuing operations
    
0.42
      
0.39
      
1.04
      
1.00
  
                                 
Return on average assets
    
0.86
%
    
0.91
%
    
0.80
%
    
0.81
%
Return on average equity
    
12.72
      
13.93
      
11.89
      
12.23
  
Net interest margin
    
3.87
      
4.16
      
3.98
      
4.22
  


“Several areas of Heartland’s performance stand out as very positive for the third quarter and year-to-date: Earnings from continuing operations are up over last year, noninterest income reflects very good increases, noninterest expenses continue to moderate and deposit balances are showing solid growth.”-- Lynn B. Fuller, chairman, president and chief executive officer, Heartland Financial USA, Inc.
 
 
 
 
Dubuque, Iowa, October 29, 2007—Heartland Financial USA, Inc. (NASDAQ: HTLF) today reported stable earnings for the third quarter of 2007. Net income of $6.9 million, or $0.42 per diluted share, for the quarter ended September 30, 2007, was consistent with net income of $6.9 million, or $0.41 per diluted share, earned during the third quarter of 2006.  Return on average equity was 12.72 percent and return on average assets was 0.86 percent for the third quarter of 2007, compared to 13.93 percent and 0.91 percent, respectively, for the same quarter in 2006.

Lynn B. Fuller, Heartland’s chairman, president and chief executive officer stated, “Several areas of Heartland’s performance stand out as very positive for the third quarter and year-to-date:  Earnings from continuing operations are up over last year, noninterest income reflects very good increases, noninterest expenses continue to moderate and deposit balances are showing solid growth.”

Net income recorded for the first nine months of 2007 was $18.9 million, or $1.14 per diluted share, an increase of $1.3 million or 7 percent over net income of $17.6 million, or $1.05 per diluted share, recorded during the first nine months of 2006. Return on average equity was 11.89 percent and return on average assets was 0.80 percent for the first nine months of 2007, compared to 12.23 percent and 0.81 percent, respectively, for the same period in 2006. During the first quarter of 2006, a pre-tax judgment of $2.4 million against Heartland and Wisconsin Community Bank was recorded as noninterest expense, while a $286,000 award under a counterclaim was recorded as a loan loss recovery. The net after-tax effect to net income for this one-time event was $1.3 million. Exclusive of this expense, Heartland’s net income for the first nine months of 2006 was $18.9 million, or $1.13 per diluted share. Because of the non-recurring nature of this expense, management believes that this pro-forma presentation can help investors understand Heartland’s financial performance for the first nine months of 2006.

The sale of Rocky Mountain Bank’s branch banking office in Broadus, Montana, was completed on June 22, 2007.  Included in the sale were $20.9 million of loans and $30.2 million of deposits. The results of operations of the branch have been reflected on the income statement as discontinued operations for the prior periods reported. Also included on the income statement as discontinued operations for the prior periods are the results of operations of ULTEA, Inc., Heartland’s fleet leasing subsidiary, which was sold to ALD Automotive on December 22, 2006. During the nine-month period ended September 30, 2007, income from discontinued operations included a $2.4 million pre-tax gain recorded as a result of the sale of the Broadus branch.

Income from continuing operations was $6.9 million, or $0.42 per diluted share, during the third quarter of 2007 compared to $6.6 million, or $0.39 per diluted share, during the third quarter of 2006. This increase in earnings from continuing operations was primarily a result of a lower provision for loan losses, which was $575,000 during the third quarter of 2007 compared to $1.4 million during the third quarter of 2006. For the nine months ended September 30, 2007, income from continuing operations was $17.2 million, or $1.04 per diluted share, compared to $16.8 million, or $1.00 per diluted share, during the same period in 2006. This increase in earnings resulted from an improvement in net interest income and noninterest income that outweighed additional provision for loan losses and noninterest expenses recorded during the nine-month comparative periods.

Net Interest Margin Constrained; Net Interest Income Grows

Net interest margin, expressed as a percentage of average earning assets, was 3.87 percent during the third quarter of 2007 compared to 4.16 percent for the third quarter of 2006 and 4.02 percent for the second quarter of 2007.  Contributing to the decline in net interest margin during the third quarter of 2007 was a shift in Heartland’s asset mix as a larger percentage of earning assets was held in fed funds sold or investments. Also affecting the net interest margin was the impact of foregone interest on Heartland’s nonperforming loans which had increased during the second and third quarters of 2007. Additionally, early in the third quarter of 2007 a $20.5 million investment was made in bank owned life insurance upon which interest expense associated with the funding of this investment affects net interest margin while the corresponding earnings on this investment is recorded as noninterest income. Given the asset sensitive posture of Heartland’s balance sheet, the most recent 50 basis point rate cut by the Fed and the anticipation of another 25 basis point rate cut when the Fed meets later this week, Heartland will be challenged to maintain its net interest margin at the current level.

Net interest income on a tax-equivalent basis totaled $28.2 million during the third quarter of 2007, an increase of $424,000 or 2 percent from the $27.8 million recorded during the third quarter of 2006.  For the nine-month period during 2007, net interest income on a tax-equivalent basis was $84.6 million, an increase of $4.0 million or 5 percent from the $80.6 million recorded during the first nine months of 2006. Contributing to these increases was the $246.6 million or 9 percent growth in average earning assets during the comparable quarterly periods and the $289.3 million or 11 percent growth in average earning assets during the first nine months of 2007 compared to 2006.

On a tax-equivalent basis, interest income in the third quarter of 2007 totaled $55.6 million compared to $50.7 million in the third quarter of 2006, an increase of $4.9 million or 10 percent. For the first nine months of 2007, interest income on a tax-equivalent basis increased $22.7 million or 16 percent over the same period in 2006. More than half of the loans in Heartland’s commercial and agricultural loan portfolios are floating rate loans, thus changes in the national prime rate impact interest income more quickly than if there were more fixed rate loans. Interest expense for the third quarter of 2007 was $27.4 million compared to $22.9 million in the third quarter of 2006, an increase of $4.5 million or 20 percent. On a nine-month comparative basis, interest expense increased $18.8 million or 31 percent. Approximately 77 percent of Heartland’s certificate of deposit accounts will mature within the next twelve months at a weighted average rate of 4.87 percent.

Noninterest Income Rises; Noninterest Expense Moderates Despite Investments in New Facilities

Noninterest income increased by $415,000 or 6 percent during the third quarter of 2007 compared to the same quarter in 2006. The categories experiencing the largest increases were trust fees, brokerage and insurance commissions and income on bank owned life insurance. For the first nine months of 2007, noninterest income increased $2.1 million or 10 percent over the same period in 2006, primarily from trust fees, brokerage and insurance commissions, gains on sale of loans and income on bank owned life insurance.

For the third quarter of 2007, noninterest expense increased $1.6 million or 7 percent in comparison with the same period in 2006. The largest component of noninterest expense, salaries and employee benefits, increased $1.3 million or 10 percent during the third quarter of 2007 in comparison to the third quarter of 2006. This growth in salaries and employee benefits expense was primarily due to additional staffing at Heartland’s operations center to provide support services to the growing number of bank subsidiaries and the formation and expansion of Summit Bank & Trust. For the nine-month period ended September 30, 2007, noninterest expense increased $3.1 million or 4 percent when compared to the same nine-month period in 2006. Exclusive of the $2.4 million judgment recorded during the first quarter of 2006, noninterest expense increased $5.5 million or 8 percent in comparison to the first nine months of 2006. Again, the largest contributor to this increase was salaries and employee benefits which grew by $4.2 million or 11 percent during this nine-month comparative period, primarily due to the expansion efforts. Total full-time equivalent employees increased to 975 at September 30, 2007, from 953 at September 30, 2006. Also included in salaries and employee benefits are the expenses related to stock options granted, which are usually awarded during the first quarter of each year. These expenses are recorded throughout the vesting period of the grants with a larger portion of the expense being recorded during the first quarter of the year due to early retirement provisions within the option agreements.

Fuller said, “Heartland continues to make strategic investments in future growth by expanding its banking franchise.  In the recent weeks, new banking offices have been opened by Rocky Mountain Bank in Billings, Montana, and Arizona Bank & Trust in Gilbert, Arizona. Summit Bank & Trust is currently putting the finishing touches on a new office in the community of Erie, Colorado, with an opening planned for this week.”

“Heartland is continuing its de novo expansion strategy with the recent announcement of its plan to charter a new bank, Minnesota Bank & Trust. We are excited about the prospects of competing in the Twin Cities market and are planning to ramp up our presence with a Loan Production Office in Edina, the location of the proposed bank’s main office.  Our goal is to open Minnesota Bank & Trust in the first quarter of next year.”

Heartland’s effective tax rate was 29.56 percent for the third quarter of 2007 compared to 32.84 percent for the third quarter of 2006.  On a nine-month comparative basis, Heartland’s effective tax rate was 31.01 percent during 2007 and 31.55 percent during 2006. The decrease in Heartland’s effective tax rate during the third quarter of 2007 resulted from $1.1 million in projected federal rehabilitation tax credits associated with Dubuque Bank and Trust Company’s newly acquired 99.9 percent ownership interest in two limited liability companies that own certified historic structures.  During both years, low-income housing tax credits were projected to total $225,000 for the year.
Heartland’s effective tax rate is also affected by the level of tax-exempt interest income which, as a percentage of pre-tax income, was 17.74 percent during the third quarter of 2007 compared to 16.46 percent during the same quarter of 2006. For the nine-month periods ended September 30, 2007 and 2006, tax-exempt income as a percentage of pre-tax income was 18.91 percent and 19.38 percent, respectively. The tax-equivalent adjustment for this tax-exempt interest income was $939,000 during the third quarter of 2007 compared to $900,000 during the same quarter in 2006. For the nine-month comparative period, the tax-equivalent adjustment for tax-exempt interest income was $2.8 million for 2007 and $2.7 million for 2006.

Loan Growth Slows; Deposits Increase

At September 30, 2007, total assets had increased $144.2 million or 6 percent annualized since year-end 2006, primarily because of loan growth. Total loans and leases were $2.3 billion at September 30, 2007, an increase of $126.3 million or 8 percent annualized since year-end 2006. The sale of the Broadus branch of Rocky Mountain Bank included loans of $20.9 million. The growth in loans was balanced between our Midwestern and Western markets. The Heartland subsidiary banks experiencing notable loan growth so far this year were Dubuque Bank and Trust Company, New Mexico Bank & Trust, Rocky Mountain Bank and Summit Bank & Trust. The commercial and commercial real estate loan category grew by $127.5 million or 11 percent annualized. Included in this change was the reclassification of $28.3 million of commercial real estate loans at Wisconsin Community Bank from the loans held for sale portfolio to the loans held to maturity portfolio as management intends to hold those loans in its portfolio.

Fuller commented, “While year over year loan growth has been good, we’ve seen loan demand slow as the year has progressed. Despite this, we anticipate a reasonably good year in loan production, though we are focusing much more attention on nonperformers.”

Total deposits at September 30, 2007, were $2.4 billion, an increase of $109.6 million or 6 percent annualized since year-end 2006. The sale of the Broadus branch of Rocky Mountain Bank included deposits of $30.2 million. Growth in deposits was weighted more heavily in our Western markets. Demand deposits experienced a $3.8 million or 1 percent annualized decline of which $3.4 million is attributable to the Broadus branch sale. Savings deposit balances experienced a $27.9 million or 5 percent annualized increase despite the $10.6 million in savings deposits lost as part of the Broadus branch sale. The increase in savings deposits primarily resulted from the promotion of a new money market product, as well as additional temporary deposits by a municipality in the Galena State Bank & Trust market.  Time deposits, excluding brokered time deposits, increased $70.0 million or 9 percent annualized with over half of the growth at the Midwestern banks where depositors tend to be more desirous of the term deposit product. Included in the Broadus branch sale were $16.2 million in time deposits. Brokered time deposit balances increased $15.5 million during the first nine months of the year, primarily to replace the reduction in balances at Rocky Mountain Bank as a result of the Broadus branch sale. At September 30, 2007, brokered time deposits totaled $116.1 million or 5 percent of total deposits compared to $100.6 million or 4 percent of total deposits at year-end 2006.

Credit Quality Remains Sound Despite Increase in Nonperforming Loans

The allowance for loan and lease losses at September 30, 2007, was 1.38 percent of loans and 104 percent of nonperforming loans, compared to 1.40 percent of loans and 356 percent of nonperforming loans at December 31, 2006, and 1.42 percent of loans and 172 percent of nonperforming loans at June 30, 2007. Nonperforming loans were $30.4 million or 1.33 percent of total loans and leases at September 30, 2007, compared to $8.4 million or 0.39 percent of total loans and leases at December 31, 2006, and $19.1 million or 0.83 percent of total loans and leases at June 30, 2007. The majority of the $21.9 million increase in nonperforming loans from December 31, 2006, occurred during the second and third quarters of 2007. Over half of this increase was attributable to four nonperforming loans at Wisconsin Community Bank totaling $12.1 million, of which $4.0 million in outstanding balances on two of these loans is covered by government guarantees. The remaining increase was distributed among the bank subsidiaries and related to a few loan customers. Net charge-offs during the third quarter of 2007 were $1.9 million compared to $2.9 million and $362,000 during the second and first quarters of 2007, respectively.  Management monitors the loan portfolio of each bank subsidiary and, at this point, does not feel that the increase in nonperforming loans is any indication of a systemic problem but is more likely a result of a shift in the economy in some of our markets. Because of the net realizable value of collateral, guarantees and other factors, management expects losses on Heartland’s nonperforming loans for the remainder of 2007 to be significantly below the amounts experienced during the second and third quarters of the year.

Fuller commented, “Even though we have experienced an increase in nonperforming loans during the quarter, we believe the allowance for loan and lease losses is adequate and that anticipated losses from nonperforming loans will be consistent with our historical experience.”

Conference Call Details

Heartland will host a conference call for investors at 3:00 p.m. CDT today. To participate, dial 800-218-0530 at least five minutes before start time, or log onto www.htlf.com. If you are unable to participate on the call, a replay will be available through November 5, 2007, by dialing 800-405-2236, code 11097004, or by logging onto www.htlf.com.

About Heartland Financial USA, Inc.:
 
Heartland Financial USA, Inc. is a $3.2 billion diversified financial services company providing banking, mortgage, wealth management, insurance and consumer finance services to individuals and businesses. The Company currently has 58 banking locations in 39 communities in Iowa, Illinois, Wisconsin, New Mexico, Arizona, Montana and Colorado. Additional information about Heartland Financial USA, Inc. is available at www.htlf.com.

Safe Harbor Statement

This release, and future oral and written statements of the Company and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to Heartland’s financial condition, results of operations, plans, objectives, future performance and business.  Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the Company’s management and on information currently available to management, are generally identifiable by the use of words such as believe, expect, anticipate, plan, intend, estimate, may, will, would, could, should or similar expressions.  Additionally, all statements in this release, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.

A number of factors, many of which are beyond the ability of the Company to control or predict, could cause actual results to differ materially from those in its forward-looking statements.  These factors include, among others, the following:  (i) the strength of the local and national economy; (ii) the economic impact of past and any future terrorist threats and attacks and any acts of war, (iii) changes in state and federal laws, regulations and governmental policies concerning the Company’s general business; (iv) changes in interest rates and prepayment rates of the Company’s assets; (v) increased competition in the financial services sector and the inability to attract new customers; (vi) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (vii)  the loss of key executives or employees; (viii)  changes in consumer spending; (ix) unexpected results of acquisitions; (x) unexpected outcomes of existing or new litigation involving the Company; and (xi) changes in accounting policies and practices. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Additional information concerning the Company and its business, including other factors that could materially affect the Company’s financial results, is included in the Risk Factors section of its Annual Report on Form 10-K and in its other filings with the Securities and Exchange Commission.
 

 
-FINANCIAL TABLES FOLLOW-
 

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
   
        For the Quarters Ended
  
             For the Nine Months Ended
     
9/30/2007
 
    
9/30/2006
 
    
9/30/2007
      
9/30/2006
  
Interest Income
                                
Interest and fees on loans and leases
  
$
47,406
    
$
43,664
    
$
140,712
    
$
121,850
  
Interest on securities and other:
                                
Taxable
    
5,446
      
4,591
      
16,010
      
12,465
  
Nontaxable
    
1,513
      
1,441
      
4,414
      
4,338
  
Interest on federal funds sold
    
310
      
64
      
310
      
164
  
Interest on deposits in other financial institutions
    
2
      
4
      
20
      
16
  
Total Interest Income
    
54,677
      
49,764
      
161,466
      
138,833
  
Interest Expense
                                
Interest on deposits
    
20,477
      
16,862
      
58,325
      
44,457
  
Interest on short-term borrowings
    
2,764
      
2,702
      
10,545
      
6,876
  
Interest on other borrowings
    
4,199
      
3,348
      
10,762
      
9,543
  
Total Interest Expense
    
27,440
      
22,912
      
79,632
      
60,876
  
Net Interest Income
    
27,237
      
26,852
      
81,834
      
77,957
  
Provision for loan and lease losses
    
575
      
1,381
      
6,769
      
4,040
  
Net Interest Income After Provision for Loan and Lease Losses
    
26,662
      
25,471
      
75,065
      
73,917
  
Noninterest Income
                                
Service charges and fees
    
2,861
      
3,085
      
8,287
      
8,354
  
Loan servicing income
    
1,068
      
1,150
      
3,103
      
3,188
  
Trust fees
    
2,089
      
1,774
      
6,265
      
5,332
  
Brokerage and insurance commissions
    
820
      
450
      
2,158
      
1,339
  
Securities gains, net
    
31
      
67
      
303
      
428
  
Gain (loss) on trading account securities
    
(7
)
    
53
      
80
      
61
  
Impairment loss on equity securities
    
-
      
(76
)
    
-
      
(76
)
Gains on sale of loans
    
604
      
551
      
2,051
      
1,678
  
Income on bank owned life insurance
    
595
      
250
      
1,212
      
769
  
Other noninterest income
    
(145
)
    
197
      
161
      
418
  
Total Noninterest Income
    
7,916
      
7,501
      
23,620
      
21,491
  
Noninterest Expense
                                
Salaries and employee benefits
    
14,301
      
13,039
      
42,680
      
38,457
  
Occupancy
    
2,004
      
1,828
      
5,941
      
5,373
  
Furniture and equipment
    
1,669
      
1,593
      
5,124
      
4,987
  
Outside services
    
2,374
      
2,273
      
7,011
      
6,954
  
Advertising
    
886
      
998
      
2,694
      
2,863
  
Other intangibles amortization
    
241
      
249
      
652
      
693
  
Other noninterest expenses
    
3,272
      
3,180
      
9,970
      
11,604
  
Total Noninterest Expense
    
24,747
      
23,160
      
74,072
      
70,931
  
Income Before Income Taxes
    
9,831
      
9,812
      
24,613
      
24,477
  
Income taxes
    
2,906
      
3,207
      
7,403
      
7,665
  
Income From Continuing Operations
    
6,925
      
6,605
      
17,210
      
16,812
  
Discontinued Operations
                                
Income from operations of discontinued operations(1)
    
-
      
423
      
2,756
      
1,191
  
Income taxes
    
-
      
154
      
1,085
      
434
  
Income From Discontinued Operations
    
-
      
269
      
1,671
      
757
  
Net Income
  
$
6,925
    
$
6,874
    
$
18,881
    
$
17,569
  
Earnings per common share-basic
  
$
0.42
    
$
0.42
    
$
1.15
    
$
1.06
  
Earnings per common share-diluted
  
$
0.42
    
$
0.41
    
$
1.14
    
$
1.05
  
Earnings per common share from continuing operations-basic
  
$
0.42
    
$
0.40
    
$
1.04
    
$
1.02
  
Earnings per common share from continuing operations-diluted
  
$
0.42
    
$
0.39
    
$
1.04
    
$
1.00
  
Weighted average shares outstanding-basic
    
16,447,270
      
16,521,527
      
16,486,669
      
16,498,127
  
Weighted average shares outstanding-diluted
    
16,543,635
      
16,775,749
      
16,619,681
      
16,730,331
  
                                 
(1)Includes a gain of $2,442 on the sale of Rocky Mountain Bank’s Broadus branch during the second quarter of 2007


HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
   
           For the Quarters Ended
   
9/30/2007
6/30/2007
3/31/2007
12/31/2006
9/30/2006
Interest Income
            
Interest and fees on loans and leases
  
$                47,406
$              47,748
$              45,558
$              44,738
$              43,664
Interest on securities and other:
    
 
      
  Taxable
  
 5,446
 5,267
 5,297
 5,128
 4,591
  Nontaxable
 
 1,513
 1,443
 1,458
 1,445
 1,441
Interest on federal funds sold
  
 310
 -
 -
 -
 64
Interest on deposits in other  financial institutions
  
 2
 8
 10
 6
 4
  Total Interest Income
  
 54,677
 54,466
 52,323
 51,317
 49,764
Interest Expense
            
Interest on deposits
  
 20,477
 19,550
 18,298
 18,073
 16,862
Interest on short-term borrowings
  
 2,764
 3,970
 3,811
 2,952
 2,702
Interest on other borrowings
  
 4,199
 3,240
 3,323
 3,508
 3,348
  Total Interest Expense
  
 27,440
 26,760
 25,432
 24,533
 22,912
  Net Interest Income
  
 27,237
 27,706
 26,891
 26,784
 26,852
Provision for loan and lease losses
  
 575
 4,268
 1,926
 (157)
 1,381
  Net Interest Income After Provision for Loan and Lease Losses
  
 26,662
 23,438
 24,965
 26,941
 25,471
Noninterest Income
            
Service charges and fees
  
 2,861
 2,855
 2,571
 2,704
 3,085
Loan servicing income
 
 1,068
 1,040
 995
 1,091
 1,150
Trust fees
  
 2,089
 2,055
 2,121
 1,926
 1,774
Brokerage and insurance commissions
  
 820
 845
 493
 532
 450
Securities gains, net
  
 31
 147
 125
 125
 67
Gain (loss) on trading account securities
  
 (7)
 46
 41
 80
 53
Impairment loss on equity securities
  
 -
 -
 -
 -
 (76)
Gains on sale of loans
  
 604
 856
 591
 611
 551
Income on bank owned life insurance
  
 595
 317
 300
 382
 250
Other noninterest income
  
 (145)
 (68)
 374
 8
 197
  Total Noninterest Income
  
 7,916
 8,093
 7,611
 7,459
 7,501
Noninterest Expense
            
Salaries and employee benefits
  
 14,301
 14,210
 14,169
 12,518
 13,039
Occupancy
 
 2,004
 2,010
 1,927
 1,918
 1,828
Furniture and equipment
  
 1,669
 1,779
 1,676
 1,737
 1,593
Outside services
  
 2,374
 2,368
 2,269
 2,450
 2,273
Advertising
  
 886
 1,039
 769
 1,030
 998
Other intangibles amortization
  
 241
 192
 219
 249
 249
Other noninterest expenses
  
 3,272
 3,331
 3,367
 3,122
 3,180
  Total Noninterest Expense
  
 24,747
 24,929
 24,396
 23,024
 23,160
  Income Before Income Taxes
  
 9,831
 6,602
 8,180
 11,376
 9,812
Income taxes
  
 2,906
 1,965
 2,532
 3,913
 3,207
  Income From Continuing Operations
  
 6,925
 4,637
 5,648
 7,463
 6,605
Discontinued Operations
            
  Income from operations of discontinued operations(1)
  
 -
 2,565
 191
 567
 423
  Income taxes
  
 -
 1,017
 68
 497
 154
  Income From Discontinued Operations
  
 -
 1,548
 123
 70
 269
  Net Income
  
$               6,925
$              6,185
$                  5,771
$                7,533
$                 6,874
Earnings per common share-basic
  
$                 0.42
$                  .38
$                      .35
$                    .46
$                     .42
Earnings per common share-diluted
  
$                 0.42
$                  .37
$                      .34
$                    .45
$                     .41
Earnings per common share from continuingoperations-basic
  
$                 0.42
$                  .28
$                      .34
$                    .45
$                     .40
Earnings per common share from continuingoperations-diluted
  
$                 0.42
$                  .28
$                      .34
$                    .44
$                     .39
Weighted average shares outstanding-basic
  
16,447,270
16,451,031
16,542,876
16,531,998
16,521,527
Weighted average shares outstanding-diluted
  
16,543,635
16,644,286
16,760,688
16,784,656
16,775,749
 
            
(1)Includes a gain of $2,442 on the sale of Rocky Mountain Bank’s Broadus branch during the second quarter of 2007




HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
   
As Of
   
9/30/2007
6/30/2007
3/31/2007
12/31/2006
9/30/2006
Assets
            
Cash and cash equivalents
  
$               31,591
$             35,721
$             62,232
$             49,143
$               45,483
Securities
  
 648,337
 590,194
 587,803
 617,040
 593,103
Loans held for sale
  
 16,267
 22,346
 42,644
 50,381
 42,561
Loans and leases:
            
  Held to maturity
  
2,274,119
2,298,256
2,224,097
2,147,845
2,122,156
  Allowance for loan and lease losses
  
 (31,438)
 (32,738)
 (31,545)
 (29,981)
 (30,684)
Loans and leases, net
  
2,242,681
2,265,518
2,192,552
2,117,864
2,091,472
Premises, furniture and equipment, net
  
 119,461
 115,885
 112,951
 108,567
 106,937
Goodwill
  
 40,207
 40,207
 40,207
 39,817
 39,817
Other intangible assets, net
  
 8,378
 8,530
 8,997
 9,010
 9,198
Cash surrender value on life insurance
  
 54,936
 33,810
 33,698
 33,371
 32,962
Assets of discontinued operations held for sale
  
 -
 -
 20,947
 -
 51,122
Other assets
  
 40,597
 42,205
 34,329
 33,049
 40,934
Total Assets
  
$      3,202,455
$      3,154,416
$     3,136,360
$     3,058,242
$     3,053,589
             
Liabilities and Stockholders’ Equity
            
Liabilities
            
Deposits:
            
  Demand
  
$            367,617
$           368,234
$          360,744
$         371,465
$          367,133
  Savings
  
 850,845
 804,949
 825,600
 822,915
 813,573
  Brokered time deposits
  
 116,082
 119,958
 118,151
 100,572
 147,669
  Other time deposits
  
1,086,732
1,075,024
1,045,330
1,016,705
 962,809
Total deposits
  
2,421,276
2,368,165
2,349,825
2,311,657
2,291,184
Short-term borrowings
  
 256,822
 274,141
 304,342
 275,694
 239,531
Other borrowings
  
 268,716
 268,758
 210,804
 224,523
 243,987
Liabilities of discontinued operations held for sale
  
 -
 -
 32,086
 -
 47,424
Accrued expenses and other liabilities
  
 33,366
 31,709
 27,453
 36,657
 29,480
Total Liabilities
  
2,980,180
2,942,773
2,924,510
2,848,531
2,851,606
Stockholders’ Equity
  
 222,275
 211,643
 211,850
 209,711
 201,983
Total Liabilities and Stockholders’ Equity
  
$       3,202,455
$     3,154,416
$    3,136,360
$    3,058,242
$    3,053,589
             
Common Share Data
            
Book value per common share
  
$                13.48
$              12.88
$              12.85
$             12.65
$             12.22
FAS 115 effect on book value per common share
  
$                  0.13
$             (0.15)
$                0.10
$               0.05
$               0.01
Common shares outstanding, net of treasury stock
  
16,492,245
16,437,459
16,484,541
16,572,080
16,530,266
             
Tangible Capital Ratio(1)
  
 5.62%
 5.35%
 5.38%
 5.46%
 5.18%

(1) Total stockholders’ equity less goodwill and intangible assets (excluding mortgage servicing rights) divided by total assets less intangible assets (excluding mortgage servicing rights).
 
HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
     
                For the Quarters Ended
                 For the Nine Months Ended
     
9/30/2007
9/30/2006
9/30/2007
9/30/2006
             
Average Balances
            
Assets
    
  $          3,176,715
  $         2,985,231
  $       3,136,034
  $         2,888,938
Loans and leases, net of unearned
    
2,287,264
2,112,091
2,268,127
2,044,926
Deposits
    
2,415,158
2,229,536
2,344,847
2,146,842
Earning assets
    
2,890,761
2,644,161
2,845,735
2,556,435
Interest bearing liabilities
    
2,558,460
2,327,554
2,513,295
2,248,654
Stockholders’ equity
    
 216,038
 195,737
 212,339
 192,020
Tangible stockholders’ equity
    
 174,637
 152,755
 170,607
 151,809
             
Earnings Performance Ratios
            
Annualized return on average assets
    
 0.86%
 0.91%
 0.80%
 0.81%
Annualized return on average equity
    
 12.72
 13.93
 11.89
 12.23
Annualized return on average tangible equity
    
 15.91
 17.85
 14.80
 15.47
Annualized net interest margin(1)
    
 3.87
 4.16
 3.98
 4.22
Efficiency ratio(2)
    
 68.63
 65.82
 68.62
 69.75


(1)      Tax equivalent basis is calculated using an effective tax rate of 35%
(2)      Noninterest expense divided by the sum of net interest income and noninterest income less net security gains


     
   
                  For the Quarters Ended
   
9/30/2007
6/30/2007
3/31/2007
12/31/2006
9/30/2006
             
Average Balances
            
Assets
  
  $         3,176,715
  $         3,158,088
  $         3,073,337
  $       3,051,995
  $        2,985,231
Loans and leases, net of unearned
  
2,287,264
2,302,037
2,214,852
2,151,870
2,112,091
Deposits
 
2,415,158
2,348,386
2,270,678
2,263,567
2,229,536
Earning assets
  
2,890,761
2,857,840
2,790,087
2,716,768
2,644,161
Interest bearing liabilities
 
2,558,460
2,524,956
2,457,797
2,391,269
2,327,554
Stockholders’ equity
  
 216,038
 211,639
 209,338
 204,438
 195,737
Tangible stockholders’ equity
 
 174,637
 169,641
 167,566
 162,053
 152,755
             
Earnings Performance Ratios
            
Annualized return on average assets
  
 0.86%
 0.79%
 0.76%
 0.98%
 0.91%
Annualized return on average equity
  
 12.72
 11.72
 11.18
 14.62
 13.93
Annualized return on average tangible equity
  
 15.91
 14.62
 13.97
 18.44
 17.85
Annualized net interest margin(1)
  
 3.87
 4.02
 4.04
 4.04
 4.16
Efficiency ratio(2)
  
 68.63
 68.17
 69.10
 65.74
 65.82


(1)      Tax equivalent basis is calculated using an effective tax rate of 35%
(2)      Noninterest expense divided by the sum of net interest income and noninterest income less net security gains

 


HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
 
As of and For
As of and For
As of and For
As of and For
 
the Nine Months
the Year
the Nine Months
The Year
 
Ended
Ended
Ended
Ended
 
9/30/2007
12/31/2006
9/30/2006
12/31/2005
Loan and Lease Data
 
      
Commercial and commercial real estate
  $             1,611,226
  $             1,483,738
  $               1,452,239
  $              1,304,080
Residential mortgage
 224,732
 225,343
 221,828
 219,671
Agricultural and agricultural real estate
 226,550
 233,748
 244,710
 230,357
Consumer
 204,545
 194,652
 193,058
 181,019
Direct financing leases, net
 10,902
 14,359
 14,079
 21,586
Unearned discount and deferred loan fees
 (3,836)
 (3,995)
 (3,758)
 (3,647)
Total loans and leases
  $          2,274,119
  $          2,147,845
  $            2,122,156
  $          1,953,066
         
Asset Quality
        
Nonaccrual loans
  $                 30,286
  $                   8,104
  $                   10,699
  $                 14,877
Loans past due ninety days or more as to interest orprincipal payments
 69
 315
 6,359
 115
Other real estate owned
 2,129
 1,575
 1,450
 1,586
Other repossessed assets
 392
 349
 355
 471
Total nonperforming assets
  $               32,876
  $              10,343
  $                18,863
  $              17,049
 
 
 
 
 
Allowance for Loan and Lease Losses
        
Balance, beginning of period
  $                 29,981
  $                27,791
  $                 27,791
  $               24,973
Provision for loan and lease losses from continuingoperations
 6,769
 3,883
 4,040
 6,533
Provision for loan and lease losses from discontinuedoperations
 -
 (5)
 (5)
 31
Loans charged off
 (6,536)
 (3,989)
 (2,655)
 (4,579)
Recoveries
 1,362
 1,733
 948
 1,152
Reclass for unfunded commitments to other liabilities
 -
 -
 -
 (319)
Additions related to acquired bank
 -
 591
 591
 -
Reductions related to discontinued operations
 (138)
 (23)
 (23)
 -
Balance, end of period
  $               31,438
  $              29,981
  $             30,684
  $           27,791
 
 
 
 
 
Asset Quality Ratios
        
Ratio of nonperforming loans to total loans and leases
 1.33%
 0.39%
 0.80%
 0.77%
Ratio of nonperforming assets to total assets
 1.03
 0.34
 0.62
 0.60
Ratio of net loan chargeoffs to average loans and leases
 0.23
 0.11
 0.08
 0.18
Allowance for loan losses as a percent of loans and leases
 1.38
 1.40
 1.45
 1.42
Allowance for loan losses as a percent of nonperforming loans and leases
 103.57
 356.11
 179.88
 185.37




HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS
     
For the Quarters Ended
  
     
                     9/30/2007
      
                   9/30/2006
  
     
Average
 
                  
Average
                
     
Balance
      
Interest
    
Rate
      
Balance
      
Interest
    
Rate
  
Earning Assets
                                            
Securities:
                                            
Taxable
  
$
474,366
    
$
5,446
    
4.55
%
  
$
426,368
    
$
4,591
    
4.27
%
Nontaxable(1)
    
136,834
      
2,271
    
6.58
      
131,289
      
2,200
    
6.65
  
Total securities
    
611,200
      
7,717
    
5.01
      
557,657
      
6,791
    
4.83
  
Interest bearing deposits
    
764
      
2
    
1.04
      
286
      
4
    
5.55
  
Federal funds sold
    
24,180
      
310
    
5.09
      
4,594
      
64
    
5.53
  
Loans and leases:
                                            
Commercial and commercial real estate(1)
    
1,609,044
      
31,757
    
7.83
      
1,457,416
      
28,914
    
7.87
  
Residential mortgage
    
239,447
      
4,069
    
6.74
      
229,855
      
3,820
    
6.59
  
Agricultural and agricultural real estate(1)
    
227,630
      
4,650
    
8.10
      
218,466
      
4,358
    
7.91
  
Consumer
    
199,823
      
5,351
    
10.62
      
192,245
      
4,876
    
10.06
  
Direct financing leases, net
    
11,320
      
171
    
5.99
      
14,109
      
219
    
6.16
  
Fees on loans
    
-
      
1,589
            
-
      
1,618
    
-
  
Less: allowance for loan and lease losses
    
(32,647
)
    
-
    
-
      
(30,467
)
    
-
    
-
  
Net loans and leases
    
2,254,617
      
47,587
    
8.37
      
2,081,624
      
43,805
    
8.35
  
Total earning assets
    
2,890,761
    
$
55,616
    
7.63
%
    
2,644,161
    
$
50,664
    
7.60
%
Nonearning Assets
    
285,954
                    
341,070
                
Total Assets
  
$
3,176,715
                  
$
2,985,231
                
Interest Bearing Liabilities
                                            
Interest bearing deposits
                                            
Savings
  
$
850,988
    
$
6,021
    
2.81
%
  
$
791,790
    
$
5,177
    
2.59
%
Time, $100,000 and over
    
305,748
      
3,848
    
4.99
      
220,582
      
2,410
    
4.33
  
Other time deposits
    
888,706
      
10,608
    
4.74
      
859,106
      
9,275
    
4.28
  
Short-term borrowings
    
243,820
      
2,764
    
4.50
      
227,349
      
2,702
    
4.72
  
Other borrowings
    
269,198
      
4,199
    
6.19
      
228,727
      
3,348
    
5.81
  
Total interest bearing liabilities
    
2,558,460
      
27,440
    
4.26
      
2,327,554
      
22,912
    
3.91
  
Noninterest Bearing Liabilities
                                            
Noninterest bearing deposits
    
369,716
                    
358,058
                
Accrued interest and other liabilities
    
32,501
                    
103,882
                
Total noninterest bearing liabilities
    
402,217
                    
461,940
                
Stockholders’ Equity
    
216,038
                    
195,737
                
Total Liabilities and Stockholders’ Equity
  
 
$
 
3,176,715
                  
 
$
 
2,985,231
                
Net interest income(1)
          
$
28,176
                  
$
27,752
        
Net interest spread(1)
                  
3.37
%
                  
3.69
%
Net interest income to total earning assets(1)
                  
3.87
 
%
                  
 
4.16
 
%
Interest bearing liabilities to earning assets
    
88.50
 
%
                  
88.03
%
              
                                             
(1) Tax equivalent basis is calculated using an effective tax rate of 35%.




HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS
     
For the Nine Months Ended
  
     
                9/30/2007
      
                  9/30/2006
  
     
Average
                    
Average
                
     
Balance
      
Interest
    
Rate
      
Balance
      
Interest
    
Rate
  
Earning Assets
                                            
Securities:
                                            
Taxable
  
$
468,616
    
$
16,010
    
4.57
%
  
$
404,779
    
$
12,465
    
4.12
%
Nontaxable(1)
    
132,831
      
6,677
    
6.72
      
131,109
      
6,657
    
6.79
  
Total securities
    
601,447
      
22,687
    
5.04
      
535,888
      
19,122
    
4.77
  
Interest bearing deposits
    
683
      
20
    
3.92
      
477
      
16
    
4.48
  
Federal funds sold
    
7,490
      
310
    
5.53
      
4,436
      
164
    
4.94
  
Loans and leases:
                                            
Commercial and commercial real estate(1)
    
1,590,559
      
94,567
    
7.95
      
1,409,859
      
79,967
    
7.58
  
Residential mortgage
    
243,299
      
12,399
    
6.81
      
224,677
      
10,920
    
6.50
  
Agricultural and agricultural real estate(1)
    
225,606
      
13,728
    
8.14
      
210,577
      
12,478
    
7.92
  
Consumer
    
196,110
      
15,482
    
10.55
      
185,974
      
13,765
    
9.90
  
Direct financing leases, net
    
12,553
      
560
    
5.96
      
13,839
      
628
    
6.07
  
Fees on loans
    
-
      
4,500
    
-
      
-
      
4,452
    
-
  
Less: allowance for loan and lease losses
    
(32,012
)
    
-
    
-
      
(29,292
)
    
-
    
-
  
Net loans and leases
    
2,236,115
      
141,236
    
8.44
      
2,015,634
      
122,210
    
8.11
  
Total earning assets
    
2,845,735
    
$
164,253
    
7.72
%
    
2,556,435
    
$
141,512
    
7.40
%
Nonearning Assets
    
290,299
                    
332,503
                
Total Assets
  
$
3,136,034
                  
$
2,888,938
                
Interest Bearing Liabilities
                                            
Interest bearing deposits
                                            
Savings
  
$
825,967
    
$
17,132
    
2.77
%
  
$
774,788
    
$
13,534
    
2.34
%
Time, $100,000 and over
    
282,393
      
10,394
    
4.92
      
216,043
      
6,502
    
4.02
  
Other time deposits
    
878,808
      
30,799
    
4.69
      
812,457
      
24,421
    
4.02
  
Short-term borrowings
    
291,941
      
10,545
    
4.83
      
217,848
      
6,876
    
4.22
  
Other borrowings
    
234,186
      
10,762
    
6.14
      
227,518
      
9,543
    
5.61
  
Total interest bearing liabilities
    
2,513,295
      
79,632
    
4.24
      
2,248,654
      
60,876
    
3.62
  
Noninterest Bearing Liabilities
                                            
Noninterest bearing deposits
    
357,679
                    
343,554
                
Accrued interest and other liabilities
    
52,721
                    
104,710
                
Total noninterest bearing liabilities
    
410,400
                    
448,264
                
Stockholders’ Equity
    
212,339
                    
192,020
                
Total Liabilities and Stockholders’ Equity
  
$
3,136,034
                  
$
2,888,938
                
Net interest income(1)
          
$
84,621
                  
$
80,636
        
Net interest spread(1)
                  
3.48
                    
3.78
  
Net interest income to total earning assets(1)
                  
3.98
%
                  
4.22
%
Interest bearing liabilities to earning assets
    
88.22
%
                  
87.96
%
              
                                             
(1) Tax equivalent basis is calculated using an effective tax rate of 35%.




HEARTLAND FINANCIAL USA, INC.
SELECTED FINANCIAL DATA – SUBSIDIARY BANKS (Unaudited)
DOLLARS IN THOUSANDS
   
As of and For the
Nine Months
Ended
9/30/2007
    
As of and For the Year
Ended
12/31/2006
    
As of and For the Nine Months
Ended
9/30/2006
    
As of and For the Year
Ended
12/31/2005
  
Total Assets
                        
Dubuque Bank and Trust Company
$
902,139
  
$
843,282
  
$
851,884
  
$
833,885
  
New Mexico Bank & Trust
  
660,490
    
638,712
    
585,458
    
557,062
  
Wisconsin Community Bank
  
420,803
    
413,108
    
419,821
    
390,842
  
Rocky Mountain Bank
  
431,850
    
438,972
    
441,851
    
388,149
  
Galena State Bank and Trust Company
  
230,055
    
219,863
    
235,174
    
241,719
  
Riverside Community Bank
  
217,232
    
199,483
    
198,058
    
195,099
  
Arizona Bank & Trust
  
228,507
    
223,567
    
225,915
    
136,832
  
First Community Bank
  
122,157
    
118,010
    
117,640
    
121,337
  
Summit Bank & Trust
  
47,625
    
21,590
    
-
    
-
  
Total Deposits
                        
Dubuque Bank and Trust Company
$
640,883
  
$
636,527
  
$
640,856
  
$
608,687
  
New Mexico Bank & Trust
  
464,948
    
437,708
    
414,206
    
388,935
  
Wisconsin Community Bank
  
343,827
    
336,015
    
334,042
    
311,436
  
Rocky Mountain Bank
  
323,306
    
335,053
    
332,870
    
306,967
  
Galena State Bank and Trust Company
  
196,606
    
178,388
    
192,253
    
179,437
  
Riverside Community Bank
  
180,561
    
162,319
    
157,452
    
153,791
  
Arizona Bank & Trust
  
175,374
    
176,438
    
182,945
    
118,959
  
First Community Bank
  
100,512
    
95,287
    
92,773
    
95,506
  
Summit Bank & Trust
  
33,531
    
6,514
    
-
    
-
  
Return on Average Assets
                        
Dubuque Bank and Trust Company
  
1.28
%
  
1.45
%
  
1.47
%
  
1.28
%
New Mexico Bank & Trust
  
1.30
    
1.21
    
1.14
    
1.10
  
Wisconsin Community Bank
  
0.51
    
0.53
    
0.37
    
0.63
  
Rocky Mountain Bank
  
1.60
    
1.18
    
0.89
    
0.72
  
Galena State Bank and Trust Company
  
0.61
    
1.35
    
1.29
    
1.22
  
Riverside Community Bank
  
0.46
    
0.64
    
0.66
    
0.83
  
Arizona Bank & Trust
  
0.13
    
0.47
    
0.41
    
0.19
  
First Community Bank
  
1.28
    
1.01
    
0.97
    
1.00
  
Summit Bank & Trust
  
(2.85
)
  
(6.31
)
  
-
    
-
  
Net Interest Margin
                        
Dubuque Bank and Trust Company
  
3.40
%
  
3.61
%
  
3.66
%
  
3.48
%
New Mexico Bank & Trust
  
4.77
    
5.05
    
5.13
    
4.75
  
Wisconsin Community Bank
  
3.48
    
3.83
    
3.93
    
3.75
  
Rocky Mountain Bank
  
4.80
    
5.16
    
5.17
    
4.93
  
Galena State Bank and Trust Company
  
3.39
    
3.45
    
3.41
    
3.43
  
Riverside Community Bank
  
3.48
    
3.71
    
3.77
    
3.76
  
Arizona Bank & Trust
  
4.73
    
4.92
    
4.93
    
5.03
  
First Community Bank
  
3.84
    
3.95
    
3.90
    
3.80
  
Summit Bank & Trust
  
5.46
    
6.98
    
-
    
-
  
Net Income (Loss)
                        
Dubuque Bank and Trust Company
$
8,421
  
$
11,990
  
$
9,077
  
$
10,156
  
New Mexico Bank & Trust
  
6,323
    
6,873
    
4,721
    
5,565
  
Wisconsin Community Bank
  
1,588
    
2,109
    
1,074
    
2,444
  
Rocky Mountain Bank
  
5,296
    
4,840
    
2,674
    
2,757
  
Galena State Bank and Trust Company
  
992
    
3,167
    
2,315
    
2,808
  
Riverside Community Bank
  
706
    
1,252
    
973
    
1,608
  
Arizona Bank & Trust
  
226
    
902
    
549
    
199
  
First Community Bank
  
1,145
    
1,197
    
859
    
1,198
  
Summit Bank & Trust
  
(778
)
  
(1,220
)
  
-
    
-
  


HEARTLAND FINANCIAL USA, INC.
SELECTED FINANCIAL DATA – SUBSIDIARY BANKS (Unaudited)
DOLLARS IN THOUSANDS
   
As of
9/30/2007
    
As of
12/31/2006
    
As of
9/30/2006
    
As of
12/31/2005
  
Total Portfolio Loans
                        
Dubuque Bank and Trust Company
$
630,104
  
$
581,166
  
$
600,066
  
$
575,293
  
New Mexico Bank & Trust
  
439,801
    
410,438
    
373,735
    
330,609
  
Wisconsin Community Bank
  
295,864
    
272,407
    
287,357
    
270,837
  
Rocky Mountain Bank
  
313,994
    
309,943
    
319,946
    
279,230
  
Galena State Bank and Trust Company
  
149,612
    
158,222
    
168,206
    
176,813
  
Riverside Community Bank
  
142,260
    
137,102
    
135,251
    
132,781
  
Arizona Bank & Trust
  
163,295
    
160,614
    
157,660
    
94,285
  
First Community Bank
  
85,554
    
81,498
    
82,453
    
83,506
  
Summit Bank & Trust
  
31,611
    
14,953
    
-
    
-
  
Allowance For Loan and Lease Losses
                        
Dubuque Bank and Trust Company
$
7,712
  
$
7,235
  
$
7,459
  
$
7,376
  
New Mexico Bank & Trust
  
5,837
    
5,352
    
5,216
    
4,497
  
Wisconsin Community Bank
  
4,494
    
4,570
    
4,719
    
4,285
  
Rocky Mountain Bank
  
4,041
    
4,044
    
4,645
    
4,048
  
Galena State Bank and Trust Company
  
1,992
    
2,049
    
2,235
    
2,181
  
Riverside Community Bank
  
1,815
    
1,747
    
1,536
    
1,674
  
Arizona Bank & Trust
  
2,392
    
2,133
    
1,972
    
1,181
  
First Community Bank
  
1,103
    
1,182
    
1,254
    
1,191
  
Summit Bank & Trust
  
392
    
192
    
-
    
-
  
Nonperforming Loans
                        
Dubuque Bank and Trust Company
$
4,338
  
$
1,216
  
$
2,554
  
$
2,745
  
New Mexico Bank & Trust
  
3,060
    
2,206
    
2,499
    
2,359
  
Wisconsin Community Bank
  
14,082
    
1,966
    
4,223
    
1,321
  
Rocky Mountain Bank
  
2,033
    
822
    
3,463
    
5,634
  
Galena State Bank and Trust Company
  
1,587
    
370
    
1,619
    
965
  
Riverside Community Bank
  
1,542
    
602
    
778
    
462
  
Arizona Bank & Trust
  
2,137
    
254
    
-
    
7
  
First Community Bank
  
884
    
588
    
1,458
    
992
  
Summit Bank & Trust
  
-
    
-
    
-
    
-
  
Allowance As a Percent of Total Loans
                        
Dubuque Bank and Trust Company
  
1.22
%
  
1.24
%
  
1.24
%
  
1.28
%
New Mexico Bank & Trust
  
1.33
    
1.30
    
1.40
    
1.36
  
Wisconsin Community Bank
  
1.52
    
1.68
    
1.64
    
1.58
  
Rocky Mountain Bank
  
1.29
    
1.30
    
1.45
    
1.45
  
Galena State Bank and Trust Company
  
1.33
    
1.30
    
1.33
    
1.23
  
Riverside Community Bank
  
1.28
    
1.27
    
1.14
    
1.26
  
Arizona Bank & Trust
  
1.46
    
1.33
    
1.25
    
1.25
  
First Community Bank
  
1.29
    
1.45
    
1.52
    
1.43
  
Summit Bank & Trust
  
1.24
    
1.28
    
-
    
-