Q1 2013 Press Release

Dubuque, Iowa, Monday, April 29, 2013-Heartland Financial USA, Inc. (NASDAQ: HTLF) today reported net income of $12.6 million for the quarter ended March 31, 2013, which was a slight decrease from the $12.8 million recorded for the first quarter of 2012. Net income available to common stockholders was $12.1 million, or $0.70 per diluted common share, for the quarter ended March 31, 2013, compared to $11.8 million, or $0.71 per diluted common share, for the first quarter of 2012. Return on average common equity was 15.18% and return on average assets was 1.00% for the first quarter of 2013, compared to 17.27% and 1.12%, respectively, for the same quarter in 2012.

Earnings for the first quarter of 2013, in comparison to the first quarter of 2012, were positively affected by a lower provision for loan and lease losses, an increase in loan servicing income and gains on sale of loans attributable to the continued expansion of our mortgage operations and a reduction in net losses on repossessed assets. The first quarter of 2012 included $2.0 million in equity earnings from the sale of two low-income housing projects within partnerships in which Dubuque Bank and Trust Company was a member. The absence of comparable other noninterest income during the first quarter of 2013, combined with a significant increase in salaries and employee benefits, offset the improvements discussed above.

On a tax-equivalent basis, interest income in the first quarter of 2013 was $50.0 million compared to $49.9 million in the first quarter of 2012. The small increase in interest income in the first quarter of 2013, as compared to the first quarter of 2012, was due to an increase in average earning assets, as the interest rate earned on those assets continued to decline throughout 2012 and the first quarter of 2013 due to the sustained low interest rate environment. The average interest rate earned on total earning assets was 4.60% during the first quarter of 2013 compared to 5.30% during the first quarter of 2012. The most significant contributor to these declines was the overall yield earned on the securities portfolio, which decreased 109 basis points during the quarter ended March 31, 2013, compared to the same quarter in 2012. Average earning assets increased $619.4 million or 16% during the first quarter of 2013 compared to the first quarter of 2012, with approximately $180.0 million attributable to the three acquisitions completed during the third and fourth quarters of 2012.

Interest expense for the first quarter of 2013 was $9.0 million, a decrease of $1.0 million or 10% from $10.0 million in the first quarter of 2012. Even though average interest bearing liabilities increased $331.3 million or 11% for the quarter ended March 31, 2013, as compared to the same quarter in 2012, the average interest rate paid on Heartland's interest bearing deposits and borrowings declined 24 basis points decreasing from 1.31% in the first quarter of 2012 to 1.07% in the first quarter of 2013. Contributing to this improvement in interest expense was a continued change in the mix of deposits. Average savings balances, the lowest cost interest-bearing deposits, as a percentage of total average interest bearing deposits was 69% during the first quarter of 2013, compared to 68% for the first quarter of 2012. Additionally, the average interest rate paid on savings deposits was 0.34% during the first quarter of 2013 compared to 0.40% during the first quarter of 2012 and the average interest rate paid on time deposits was 1.61% during the first quarter of 2013 compared to 2.12% during the first quarter of 2012.

improvement in noninterest income in the first quarter of 2013 compared to the first quarter of 2012 were loan servicing income and gains on sale of loans. Loan servicing income increased $1.6 million or 92% for the first quarter of 2013 as compared to the first quarter of 2012 as mortgage servicing rights income, which is influenced by market interest rates for home mortgage loans and the level of loans Heartland originates and sells into the secondary market, increased significantly. Loan servicing income also includes the fees collected for the servicing of mortgage loans for others, which is dependent upon the aggregate outstanding balance of these loans, rather than quarterly production and sale of mortgage loans. Fees collected for the servicing of mortgage loans for others were $1.4 million during the first quarter of 2013 compared to $967,000 during the first quarter of 2012. The portfolio of mortgage loans serviced for others by Heartland totaled $2.35 billion at March 31, 2013, compared to $1.63 billion at March 31, 2012. Gains on sale of loans, which result primarily from the sale of mortgage loans into the secondary market, totaled $9.9 million during the first quarter of 2013 compared to $8.5 million during the first quarter of 2012. The volume of mortgage loans sold totaled $424.9 million during the first quarter of 2013, a 74% increase over the $243.8 million sold during the first quarter of 2012.



	As Of and For the Quarter Ended
	3/31/2013			12/31/2012			9/30/2012			6/30/2012			3/31/2012
Mortgage Servicing Fees	$	1,430		$	1,304		$	1,123		$	1,037		$	967
Mortgage Servicing Rights Income	3,245			3,535			3,316			2,614			1,986
Mortgage Servicing Rights Amortization	(1,761		)	(1,871		)	(1,896		)	(1,112		)	(1,718		)
Total Residential Mortgage Loan Servicing Income	$	2,914		$	2,968		$	2,543		$	2,539		$	1,235
Valuation Adjustment on Mortgage Servicing Rights	$	496		$	197		$	(493	)	$	(194	)	$	13
Gains On Sale of Residential Mortgage Loans	$	9,641		$	13,966		$	13,750		$	12,689		$	8,502
Total Residential Mortgage Loan Applications	$	556,890		$	645,603		$	672,382		$	638,595		$	549,315
Residential Mortgage Loans Originated	$	432,974		$	490,525		$	488,658		$	374,743		$	293,724
Residential Mortgage Loans Sold	$	424,931		$	478,280		$	448,704		$	360,743		$	243,836
Residential Mortgage Loan Servicing Portfolio	$	2,349,596		$	2,199,486		$	1,963,567		$	1,776,912		$	1,626,129

As reflected in the table above, on a sequential quarterly basis, residential mortgage loan originations and the gains on sale of residential mortgage loans and the mortgage servicing rights income they create, decreased in the first quarter of 2013 as compared to the last quarter of 2012. These decreases resulted primarily from the seasonality typically experienced in mortgage loan activity during the first quarter of the year, coupled with a slight increase in residential mortgage loan interest rates. Heartland believes long term success in the mortgage banking business depends on its ability to shift toward the origination of loans for the purchase of new homes versus the refinance of mortgages on existing homes. For the first quarter of 2013, refinancing activity represented 70% of total mortgage loan originations compared to 71% during the fourth quarter of 2012, 64% during the third quarter of 2012 and 58% during the second quarter of 2012.

Securities gains totaled $3.4 million during the first quarter of 2013 compared to $3.9 million during the first quarter of 2012, as volatility in the bond market continued to provide opportunities to swap securities from one sector of the portfolio to another without significantly changing the duration of the portfolio. Offsetting, in part, the securities gains during the first quarter of 2012 was an impairment loss on securities totaling $981,000. Other noninterest income totaled $680,000 during the first quarter of 2013 compared to $2.6 million during the first quarter of 2012. Included in the other noninterest income during the first quarter of 2012 was $2.0 million in equity earnings which resulted from the sale of two low-income housing projects within partnerships in which Dubuque Bank and Trust Company was a member.

For the first quarter of 2013, noninterest expense totaled $46.7 million, an increase of $6.6 million or 16% from the same quarter of 2012. The primary contributor to this increase was the $5.7 million or 24% increase in salaries and employee benefits, a large portion of which resulted from the expansion of Heartland's residential loan origination operations, with a smaller portion attributable to the additional employees joining Heartland through the acquisitions completed during last two quarters of 2012. Full-time equivalent employees increased from 1,253 on March 31, 2012, to 1,532 on March 31, 2013, approximately 35 of which were from the acquisitions. The noninterest expenses categories experiencing significant increases during the first quarter of 2013 in comparison to the first quarter of

Heartland's effective tax rate was 29.39% for the first quarter of 2013 compared to 32.82% for the first quarter of 2012. Federal low-income housing tax credits included in Heartland's effective tax rate totaled $200,000 during both the first quarter of 2013 and 2012. 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 23.81% during the first quarter of 2013 compared to 15.95% during the first quarter of 2012. The tax-equivalent adjustment for this tax-exempt interest income was $2.3 million during the first quarter of 2013 compared to $1.6 million during the first quarter of 2012.

Total loans and leases held to maturity were $2.79 billion at March 31, 2013, compared to $2.82 billion at year-end 2012, a decrease of $31.7 million or 4% annualized, a good portion of which was attributable to seasonal paydowns on agricultural and commercial lines of credit. Additionally, payoffs were received on loans to borrowers who obtained lower rates and more liberal terms from competitors, including some we chose to exit due to increased credit risk evidenced in the relationship. Commercial and commercial real estate loans, which totaled $1.99 billion at March 31, 2013, decreased $10.7 million or 2% annualized since year-end 2012. Residential mortgage loans, which totaled $240.5 million at March 31, 2013, decreased $9.2 million or 15% annualized since year-end 2012. Agricultural and agricultural real estate loans, which totaled $314.6 million at March 31, 2013, decreased $13.7 million or 17% annualized since year-end 2012. Consumer loans, which totaled $247.0 million at March 31, 2013, increased $1.3 million or 2% annualized since year-end 2012.

Total deposits were $3.84 billion at March 31, 2013, compared to $3.85 billion at year-end 2012, a decrease of $3.2 million or less than 1% annualized. Demand deposits totaled $971.1 million at March 31, 2013, a decrease of $3.1 million or 1% annualized since year-end 2012. Also experiencing a decrease during the quarter, certificates of deposit totaled $848.7 million at March 31, 2013, a decrease of $18.3 million or 8% annualized. Savings deposits experienced an increase during the quarter, growing to $2.02 billion at March 31, 2013, an increase of $18.2 million or 4% annualized. The composition of Heartland's deposits continued its positive trend as no-cost demand deposits as a percentage of total deposits was 25% at both March 31, 2013, and December 31, 2012, while higher-cost certificates of deposit as a percentage of total deposits was 22% at March 31, 2013, compared to 23% at December 31, 2012.

Nonperforming loans, exclusive of those covered under the loss sharing agreements, were $32.8 million or 1.18% of total loans and leases at March 31, 2013, compared to $43.2 million or 1.53% of total loans and leases at December 31, 2012. Approximately 42%, or $13.7 million, of Heartland's nonperforming loans have individual loan balances exceeding $1.0 million. These nonperforming loans, to an aggregate of 7 borrowers, are primarily concentrated in Heartland's banks serving the Western states, with $4.4 million originated by New Mexico Bank & Trust, $4.1 million originated by Rocky Mountain Bank, $1.7 million originated by Galena State Bank & Trust Co., $1.3 million originated by Riverside Community Bank, $1.2 million originated by Arizona Bank & Trust and $1.0 million originated by Wisconsin Bank & Trust. The portion of Heartland's nonperforming loans covered by government guarantees was $454,000 at March 31, 2013. The industry breakdown for nonperforming loans with individual balances exceeding $1.0 million, as identified using the North American Industry Classification System (NAICS), was $8.4 million for lot and land development. The remaining $5.3 million was distributed among four other industry categories.



	Nonperforming Loans			Other Real Estate Owned			Other Repossessed Assets			Total Nonperforming Assets
December 31, 2012	$	44,415		$	35,822		$	542		$	80,779
Loan foreclosures	(5,330		)	4,843			487			—
Net loan charge offs	(1,824		)	—			—			(1,824		)
New nonperforming loans	3,362			—			—			3,362
Reduction of nonperforming loans⁽¹⁾	(7,177		)	—			—			(7,177		)
OREO/Repossessed assets sales proceeds	—			(3,292		)	(31		)	(3,323		)
OREO/Repossessed assets writedowns, net	—			(669		)	(23		)	(692		)
Net activity at Citizens Finance Co.	—			—			84			84
March 31, 2013	$	33,446		$	36,704		$	1,059		$	71,209

(1) Includes principal reductions and transfers to performing status.

This release, and future oral and written statements of Heartland and its management, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Heartland's financial condition, results of operations, plans, objectives, future performance and business. Although these forward-looking statements are based upon the beliefs, expectations and assumptions of Heartland's management, there are a number of factors, 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 are detailed in the risk factors included in Heartland's Annual Report on Form 10-K filed with the Securities and Exchange Commission, include, among others: (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 potential impact of acquisitions, (viii) the loss of key executives or employees; (ix) changes in consumer spending; (x) unexpected outcomes of existing or new litigation involving the Company; and (xii) changes in accounting policies and practices. All statements in this release, including forward-looking statements, speak only as of the date they are made, and Heartland undertakes no obligation to update any statement in light of new information or future events.



HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
	For the Quarter Ended March 31,
	2013			2012
Interest Income
Interest and fees on loans and leases	$	39,827		$	38,399
Interest on securities:
Taxable	4,659			7,572
Nontaxable	3,198			2,271
Interest on federal funds sold	—			—
Interest on deposits in other financial institutions	4			—
Total Interest Income	47,688			48,242
Interest Expense
Interest on deposits	5,076			5,775
Interest on short-term borrowings	148			213
Interest on other borrowings	3,797			4,061
Total Interest Expense	9,021			10,049
Net Interest Income	38,667			38,193
Provision for loan and lease losses	637			2,354
Net Interest Income After Provision for Loan and Lease Losses	38,030			35,839
Noninterest Income
Service charges and fees	4,008			3,584
Loan servicing income	3,371			1,760
Trust fees	2,904			2,613
Brokerage and insurance commissions	951			910
Securities gains, net	3,427			3,943
Gain (loss) on trading account securities	314			(3		)
Impairment loss on securities	—			(981		)
Gains on sale of loans	9,912			8,502
Valuation adjustment on mortgage servicing rights	496			13
Income on bank owned life insurance	405			482
Other noninterest income	680			2,565
Total Noninterest Income	26,468			23,388
Noninterest Expense
Salaries and employee benefits	29,740			23,996
Occupancy	3,185			2,482
Furniture and equipment	2,051			1,446
Professional fees	3,543			2,760
FDIC insurance assessments	902			864
Advertising	1,228			1,071
Intangible assets amortization	200			131
Net loss on repossessed assets	1,340			2,904
Other noninterest expenses	4,558			4,486
Total Noninterest Expense	46,747			40,140
Income Before Income Taxes	17,751			19,087
Income taxes	5,199			6,272
Net Income	12,552			12,815
Net (income) loss attributable to noncontrolling interest, net of tax	(64		)	26
Net Income Attributable to Heartland	12,488			12,841
Preferred dividends and discount	(408		)	(1,021		)
Net Income Available to Common Stockholders	$	12,080		$	11,820
Earnings per common share-diluted	$	0.70		$	0.71
Weighted average shares outstanding-diluted	17,187,180			16,729,925



HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
	For the Quarter Ended
	3/31/2013			12/31/2012			9/30/2012			6/30/2012			3/31/2012
Interest Income
Interest and fees on loans and leases	$	39,827		$	39,510		$	39,208		$	39,382		$	38,399
Interest on securities:
Taxable	4,659			5,079			4,452			5,026			7,572
Nontaxable	3,198			2,912			2,896			2,619			2,271
Interest on federal funds sold	—			3			—			1			—
Interest on deposits in other financial institutions	4			3			3			2			—
Total Interest Income	47,688			47,507			46,559			47,030			48,242
Interest Expense
Interest on deposits	5,076			5,347			5,504			5,604			5,775
Interest on short-term borrowings	148			166			215			224			213
Interest on other borrowings	3,797			4,020			4,028			4,025			4,061
Total Interest Expense	9,021			9,533			9,747			9,853			10,049
Net Interest Income	38,667			37,974			36,812			37,177			38,193
Provision for loan and lease losses	637			3,350			(502		)	3,000			2,354
Net Interest Income After Provision for Loan and Lease Losses	38,030			34,624			37,314			34,177			35,839
Noninterest Income
Service charges and fees	4,008			4,002			3,944			3,712			3,584
Loan servicing income	3,371			3,468			3,016			3,056			1,760
Trust fees	2,904			2,538			2,667			2,660			2,613
Brokerage and insurance commissions	951			945			908			939			910
Securities gains, net	3,427			(108		)	5,212			4,951			3,943
Gain (loss) on trading account securities	314			164			(163		)	49			(3		)
Impairment loss on securities	—			—			—			—			(981		)
Gains on sale of loans	9,912			14,257			13,750			12,689			8,502
Valuation adjustment on mortgage servicing rights	496			197			(493		)	(194		)	13
Income on bank owned life insurance	405			311			382			267			482
Other noninterest income	680			1,456			543			149			2,565
Total Noninterest Income	26,468			27,230			29,766			28,278			23,388
Noninterest Expense
Salaries and employee benefits	29,740			29,283			27,064			25,384			23,996
Occupancy	3,185			3,017			2,596			2,534			2,482
Furniture and equipment	2,051			1,822			1,541			1,517			1,446
Professional fees	3,543			4,400			4,217			3,961			2,760
FDIC insurance assessments	902			810			811			807			864
Advertising	1,228			1,736			1,183			1,304			1,071
Intangible assets amortization	200			163			146			122			131
Net loss on repossessed assets	1,340			1,983			3,775			1,307			2,904
Other noninterest expenses	4,558			11,409			5,826			4,523			4,486
Total Noninterest Expense	46,747			54,623			47,159			41,459			40,140
Income Before Income Taxes	17,751			7,231			19,921			20,996			19,087
Income taxes	5,199			(2,258		)	6,338			7,032			6,272
Net Income	12,552			9,489			13,583			13,964			12,815
Net (income) loss attributable to noncontrolling interest, net of tax	(64		)	(82		)	4			(7		)	26
Net Income Attributable to Heartland	12,488			9,407			13,587			13,957			12,841
Preferred dividends and discount	(408		)	(409		)	(949		)	(1,021		)	(1,021		)
Net Income Available to Common Stockholders	$	12,080		$	8,998		$	12,638		$	12,936		$	11,820
Earnings per common share-diluted	$	0.70		$	0.54		$	0.75		$	0.77		$	0.71
Weighted average shares outstanding-diluted	17,187,180			16,812,947			16,745,968			16,717,846			16,729,925



HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
	As Of
	3/31/2013			12/31/2012			9/30/2012			6/30/2012			3/31/2012
Assets
Cash and cash equivalents	$	78,192		$	168,054		$	191,126		$	82,831		$	150,122
Securities	1,580,719			1,561,957			1,332,082			1,331,088			1,221,909
Loans held for sale	91,708			96,165			99,429			73,284			103,460
Loans and leases:
Held to maturity	2,789,893			2,821,549			2,647,959			2,629,597			2,532,419
Loans covered by loss share agreements	6,741			7,253			8,511			9,567			11,360
Allowance for loan and lease losses	(37,528		)	(38,715		)	(40,401		)	(41,439		)	(39,362		)
Loans and leases, net	2,759,106			2,790,087			2,616,069			2,597,725			2,504,417
Premises, furniture and equipment, net	128,411			128,294			120,334			114,823			111,946
Goodwill	30,627			30,627			26,590			25,909			25,909
Other intangible assets, net	20,266			18,486			15,612			14,295			13,109
Cash surrender value on life insurance	75,907			75,480			72,853			72,448			72,159
Other real estate, net	36,704			35,822			36,139			37,941			38,934
FDIC indemnification asset	528			749			1,238			1,148			1,270
Other assets	98,390			84,832			81,725			76,192			69,616
Total Assets	$	4,900,558		$	4,990,553		$	4,593,197		$	4,427,684		$	4,312,851
Liabilities and Equity
Liabilities
Deposits:
Demand	$	971,142		$	974,232		$	877,790		$	799,548		$	771,421
Savings	2,022,625			2,004,438			1,809,776			1,734,155			1,731,399
Time	848,689			866,990			815,470			801,204			772,939
Total deposits	3,842,456			3,845,660			3,503,036			3,334,907			3,275,759
Short-term borrowings	202,694			224,626			245,308			249,485			229,533
Other borrowings	336,577			389,025			377,536			377,543			377,362
Accrued expenses and other liabilities	104,857			126,703			72,571			90,755			64,154
Total Liabilities	4,486,584			4,586,014			4,198,451			4,052,690			3,946,808
Equity
Preferred equity	81,698			81,698			81,698			81,698			81,698
Common equity	329,478			320,107			310,396			290,640			281,696
Total Heartland Stockholders' Equity	411,176			401,805			392,094			372,338			363,394
Noncontrolling interest	2,798			2,734			2,652			2,656			2,649
Total Equity	413,974			404,539			394,746			374,994			366,043
Total Liabilities and Equity	$	4,900,558		$	4,990,553		$	4,593,197		$	4,427,684		$	4,312,851
Common Share Data
Book value per common share	$	19.54		$	19.02		$	18.81		$	17.65		$	17.09
ASC 320 effect on book value per common share	$	1.03		$	1.21		$	1.46		$	0.98		$	1.09
Common shares outstanding, net of treasury stock	16,865,919			16,827,835			16,505,241			16,467,889			16,486,539
Tangible Capital Ratio⁽¹⁾	6.09		%	5.78		%	6.18		%	5.98		%	5.93		%

(1) Total common stockholders' equity less goodwill and intangible assets (excluding mortgage servicing rights) divided by total assets less intangible assets (excluding mortgage servicing rights). This is a non-GAAP financial measure.



HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
	For the Quarter Ended
	3/31/2013			12/31/2012			9/30/2012			6/30/2012			3/31/2012
Average Balances
Assets	$	4,890,023		$	4,739,887		$	4,532,302		$	4,350,916		$	4,225,815
Loans and leases, net of unearned	2,876,960			2,803,361			2,727,806			2,675,694			2,577,429
Deposits	3,801,125			3,674,507			3,415,810			3,291,293			3,201,073
Earning assets	4,404,119			4,171,475			4,019,601			3,870,360			3,784,709
Interest bearing liabilities	3,412,641			3,330,270			3,235,440			3,140,063			3,081,340
Common stockholders' equity	322,820			316,073			299,408			284,610			275,275
Total stockholders' equity	407,282			400,442			383,763			368,960			359,644
Tangible common stockholders' equity	289,453			288,359			272,078			257,212			247,744

Earnings Performance Ratios
Annualized return on average assets	1.00		%	0.76		%	1.11		%	1.20		%	1.12		%
Annualized return on average common equity	15.18		%	11.33		%	16.79		%	18.28		%	17.27		%
Annualized return on average common tangible equity	16.93		%	12.41		%	18.48		%	20.23		%	19.19		%
Annualized net interest margin ⁽¹⁾	3.77		%	3.81		%	3.84		%	4.05		%	4.23		%
Efficiency ratio ⁽²⁾	73.06		%	81.13		%	74.47		%	66.56		%	67.71		%

(1) Computed on a tax equivalent basis 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. This is a non-GAAP financial measure.



HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
	As of and for the Quarter Ended
	3/31/2013			12/31/2012			9/30/2012			6/30/2012			3/31/2012
Loan and Lease Data
Loans held to maturity:
Commercial and commercial real estate	$	1,990,818		$	2,001,492		$	1,902,588		$	1,904,286		$	1,842,889
Residential mortgage	240,453			249,689			228,972			220,084			202,883
Agricultural and agricultural real estate	314,606			328,311			283,697			279,285			270,687
Consumer	246,996			245,678			236,619			230,594			222,387
Unearned discount and deferred loan fees	(2,980		)	(3,621		)	(3,917		)	(4,652		)	(6,427		)
Total loans and leases held to maturity	$	2,789,893		$	2,821,549		$	2,647,959		$	2,629,597		$	2,532,419
Loans covered under loss share agreements:
Commercial and commercial real estate	$	2,738		$	3,074		$	3,772		$	4,497		$	5,730
Residential mortgage	2,722			2,645			3,099			3,309			3,734
Agricultural and agricultural real estate	453			748			863			858			934
Consumer	828			786			777			903			962
Total loans and leases covered under loss share agreements	$	6,741		$	7,253		$	8,511		$	9,567		$	11,360
Asset Quality
Not covered under loss share agreements:
Nonaccrual loans	$	32,356		$	43,156		$	40,743		$	44,845		$	49,940
Loans and leases past due ninety days or more as to interest or principal payments	454			—			—			—			—
Other real estate owned	35,697			35,470			35,994			37,709			38,693
Other repossessed assets	1,059			542			496			465			710
Total nonperforming assets not covered under loss share agreements	$	69,566		$	79,168		$	77,233		$	83,019		$	89,343
Performing troubled debt restructured loans	$	24,473		$	21,121		$	22,385		$	24,715		$	21,379
Covered under loss share agreements:
Nonaccrual loans	$	636		$	1,259		$	2,236		$	2,862		$	3,189
Other real estate owned	1,007			352			145			232			241
Total nonperforming assets covered under loss share agreements	$	1,643		$	1,611		$	2,381		$	3,094		$	3,430
Allowance for Loan and Lease Losses
Balance, beginning of period	$	38,715		$	40,401		$	41,439		$	39,362		$	36,808
Provision for loan and lease losses	637			3,350			(502		)	3,000			2,354
Charge-offs on loans not covered by loss share agreements	(3,041		)	(7,455		)	(2,785		)	(2,219		)	(1,608		)
Charge-offs on loans covered by loss share agreements	(23		)	(137		)	(265		)	(35		)	—
Recoveries	1,240			2,556			2,514			1,331			1,808
Balance, end of period	$	37,528		$	38,715		$	40,401		$	41,439		$	39,362
Asset Quality Ratios Excluding Assets Covered Under Loss Share Agreements
Ratio of nonperforming loans and leases to total loans and leases	1.18		%	1.53		%	1.54		%	1.71		%	1.97		%
Ratio of nonperforming assets to total assets	1.42		%	1.59		%	1.68		%	1.87		%	2.07		%
Annualized ratio of net loan charge-offs to average loans and leases	0.26		%	0.71		%	0.08		%	0.14		%	(0.03		)%
Allowance for loan and lease losses as a percent of loans and leases	1.35		%	1.37		%	1.53		%	1.58		%	1.55		%
Allowance for loan and lease losses as a percent of nonperforming loans and leases	114.38		%	89.71		%	99.16		%	92.40		%	78.82		%



HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS
	For the Quarter Ended
	March 31, 2013							March 31, 2012
	Average							Average
	Balance			Interest		Rate		Balance			Interest		Rate
Earning Assets
Securities:
Taxable	$	1,184,567		$	4,659	1.60	%	$	1,021,228		$	7,572	2.98	%
Nontaxable⁽¹⁾	370,872			4,920		5.38		219,283			3,494		6.41
Total securities	1,555,439			9,579		2.50		1,240,511			11,066		3.59
Interest bearing deposits	8,985			4		0.18		3,823			—		—
Federal funds sold	1,634			—		—		148			—		—
Loans and leases:
Commercial and commercial real estate⁽¹⁾	1,982,456			25,560		5.23		1,827,733			24,995		5.50
Residential mortgage	333,742			3,439		4.18		264,596			3,116		4.74
Agricultural and agricultural real estate⁽¹⁾	315,176			4,364		5.62		266,763			3,933		5.93
Consumer	245,586			5,824		9.62		218,337			5,377		9.90
Fees on loans				1,194		—		—			1,395		—
Less: allowance for loan and lease losses	(38,899		)	—		—		(37,202		)	—		—
Net loans and leases	2,838,061			40,381		5.77		2,540,227			38,816		6.15
Total earning assets	4,404,119			49,964		4.60	%	3,784,709			49,882		5.30	%
Nonearning Assets	485,904							441,106
Total Assets	$	4,890,023						$	4,225,815
Interest Bearing Liabilities
Savings	$	1,961,438		$	1,633	0.34	%	$	1,679,651		$	1,663	0.40	%
Time, $100,000 and over	315,761			1,170		1.50		247,396			1,228		2.00
Other time deposits	550,633			2,273		1.67		533,153			2,884		2.18
Short-term borrowings	229,752			148		0.26		247,090			213		0.35
Other borrowings	355,057			3,797		4.34		374,050			4,061		4.37
Total interest bearing liabilities	3,412,641			9,021		1.07	%	3,081,340			10,049		1.31	%
Noninterest Bearing Liabilities
Noninterest bearing deposits	973,293							740,873
Accrued interest and other liabilities	96,807							43,958
Total noninterest bearing liabilities	1,070,100							784,831
Stockholders' Equity	407,282							359,644
Total Liabilities and Stockholders' Equity	$	4,890,023						$	4,225,815
Net interest income⁽¹⁾				$	40,943						$	39,833
Net interest spread⁽¹⁾						3.53	%						3.99	%
Net interest income to total earning assets⁽¹⁾						3.77	%						4.23	%
Interest bearing liabilities to earning assets	77.49		%					81.42		%

(1) Computed on a tax equivalent basis 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 Quarter Ended
	3/31/2013			12/31/2012			9/30/2012			6/30/2012			3/31/2012
Total Assets
Dubuque Bank and Trust Company	$	1,436,744		$	1,482,504		$	1,478,943		$	1,385,409		$	1,407,827
New Mexico Bank & Trust	1,010,607			1,026,952			973,177			998,172			929,804
Wisconsin Bank & Trust	651,277			691,715			511,580			497,372			491,741
Rocky Mountain Bank	457,389			465,614			435,283			443,493			432,902
Riverside Community Bank	422,352			450,863			424,044			360,654			343,232
Arizona Bank & Trust	404,518			307,871			275,053			268,103			239,434
Galena State Bank & Trust Co.	294,484			295,226			295,222			309,516			289,740
Minnesota Bank & Trust	127,044			126,421			109,586			101,704			95,462
Summit Bank & Trust	115,649			119,752			104,066			102,875			98,247
Total Deposits
Dubuque Bank and Trust Company	$	1,123,323		$	1,150,141		$	1,089,125		$	959,273		$	978,854
New Mexico Bank & Trust	716,938			721,445			720,520			725,537			697,060
Wisconsin Bank & Trust	533,956			549,773			424,146			415,277			409,994
Rocky Mountain Bank	380,024			372,135			354,396			356,046			362,307
Riverside Community Bank	352,189			344,005			335,899			305,120			286,529
Arizona Bank & Trust	339,797			243,044			216,851			211,318			183,321
Galena State Bank & Trust Co.	235,000			245,554			247,334			257,800			245,780
Minnesota Bank & Trust	111,886			109,862			91,179			77,119			78,338
Summit Bank & Trust	100,617			93,318			88,540			83,977			81,290
Net Income (Loss)
Dubuque Bank and Trust Company	$	2,872		$	5,581		$	5,485		$	8,463		$	9,604
New Mexico Bank & Trust	3,444			1,354			4,395			1,592			2,216
Wisconsin Bank & Trust	2,544			638			1,943			1,547			2,153
Rocky Mountain Bank	1,175			2,029			1,315			2,089			963
Riverside Community Bank	827			482			607			914			369
Arizona Bank & Trust	1,714			1,346			1,534			981			(215		)
Galena State Bank & Trust Co.	1,270			929			938			1,149			437
Minnesota Bank & Trust	320			412			(15		)	35			(129		)
Summit Bank & Trust	(45		)	(69		)	(1		)	(100		)	(123		)
Return on Average Assets
Dubuque Bank and Trust Company	0.81		%	1.34		%	1.50		%	2.39		%	2.88		%
New Mexico Bank & Trust	1.38			0.53			1.78			0.66			0.96
Wisconsin Bank & Trust	1.58			0.44			1.53			1.27			1.69
Rocky Mountain Bank	1.03			1.86			1.21			1.94			0.89
Riverside Community Bank	0.77			0.46			0.57			1.05			0.45
Arizona Bank & Trust	1.69			1.87			2.22			1.56			(0.37		)
Galena State Bank & Trust Co.	1.82			1.25			1.24			1.58			0.62
Minnesota Bank & Trust	1.03			1.41			(0.06		)	0.15			(0.58		)
Summit Bank & Trust	(0.16		)	(0.25		)	—			(0.40		)	(0.50		)
Net Interest Margin as a Percentage of Average Earning Assets
Dubuque Bank and Trust Company	3.37		%	3.57		%	3.61		%	3.67		%	4.03		%
New Mexico Bank & Trust	3.56			3.51			3.50			3.69			4.02
Wisconsin Bank & Trust	4.34			4.16			4.04			4.38			4.41
Rocky Mountain Bank	3.82			4.26			4.35			4.68			4.33
Riverside Community Bank	2.80			3.02			2.44			3.38			3.63
Arizona Bank & Trust	4.25			3.89			3.76			4.19			4.40
Galena State Bank & Trust Co.	3.69			3.31			3.50			3.42			3.89
Minnesota Bank & Trust	3.68			4.04			4.47			4.57			4.75
Summit Bank & Trust	3.89			3.62			3.75			3.89			4.07



HEARTLAND FINANCIAL USA, INC.
SELECTED FINANCIAL DATA - SUBSIDIARY BANKS (Unaudited)
DOLLARS IN THOUSANDS
	As of
	3/31/2013			12/31/2012			9/30/2012			6/30/2012			3/31/2012
Total Portfolio Loans and Leases
Dubuque Bank and Trust Company	$	803,084		$	814,400		$	827,065		$	824,830		$	796,789
New Mexico Bank & Trust	490,691			497,837			490,102			500,296			506,424
Wisconsin Bank & Trust	445,869			446,214			355,670			353,152			340,841
Rocky Mountain Bank	272,385			278,252			286,138			280,137			264,964
Riverside Community Bank	167,776			166,852			155,191			158,186			153,174
Arizona Bank & Trust	249,642			189,314			185,186			177,953			150,629
Galena State Bank & Trust Co.	170,500			176,109			172,530			169,160			167,677
Minnesota Bank & Trust	89,876			90,729			85,860			80,815			73,413
Summit Bank & Trust	77,305			77,264			67,909			67,932			63,658
Allowance For Loan and Lease Losses
Dubuque Bank and Trust Company	$	8,758		$	9,217		$	9,760		$	9,454		$	9,584
New Mexico Bank & Trust	6,381			6,837			7,834			8,705			7,110
Wisconsin Bank & Trust	4,248			4,164			3,719			3,695			3,629
Rocky Mountain Bank	4,009			4,072			4,135			4,325			4,204
Riverside Community Bank	3,174			3,240			3,122			3,114			3,206
Arizona Bank & Trust	4,065			4,444			4,723			5,390			5,315
Galena State Bank & Trust Co.	1,856			2,031			1,932			1,808			1,854
Minnesota Bank & Trust	920			961			915			822			748
Summit Bank & Trust	1,339			1,204			1,478			1,370			1,132
Nonperforming Loans and Leases
Dubuque Bank and Trust Company	$	2,234		$	2,783		$	2,378		$	2,508		$	3,107
New Mexico Bank & Trust	8,228			10,711			8,455			10,856			13,368
Wisconsin Bank & Trust	3,875			5,433			6,673			7,463			7,482
Rocky Mountain Bank	6,130			8,174			6,167			6,005			7,787
Riverside Community Bank	3,118			3,473			4,685			5,222			5,458
Arizona Bank & Trust	3,378			3,549			5,409			5,645			5,755
Galena State Bank & Trust Co.	3,087			5,080			3,242			3,778			3,699
Minnesota Bank & Trust	4			5			5			6			6
Summit Bank & Trust	2,001			3,159			2,913			2,691			2,709
Allowance As a Percent of Total Loans and Leases
Dubuque Bank and Trust Company	1.09		%	1.13		%	1.18		%	1.15		%	1.20		%
New Mexico Bank & Trust	1.30			1.37			1.60			1.74			1.40
Wisconsin Bank & Trust	0.95			0.93			1.05			1.05			1.06
Rocky Mountain Bank	1.47			1.46			1.45			1.54			1.59
Riverside Community Bank	1.89			1.94			2.01			1.97			2.09
Arizona Bank & Trust	1.63			2.35			2.55			3.03			3.53
Galena State Bank & Trust Co.	1.09			1.15			1.12			1.07			1.11
Minnesota Bank & Trust	1.02			1.06			1.07			1.02			1.02
Summit Bank & Trust	1.73			1.56			2.18			2.02			1.78



CONTACT:	FOR IMMEDIATE RELEASE
John K. Schmidt	April 29, 2013
Chief Operating Officer
Chief Financial Officer
(563) 589-1994
jschmidt@htlf.com



§	Net income of $12.6 million or $0.70 per diluted common share
§	Return on average common equity of 15.18%
§	Net interest margin of 3.77%
§	Provision for loan and lease losses decreased $1.7 million or 73% over first quarter 2012
§	Gains on sale of loans increased $1.4 million or 17% over first quarter 2012
§	Nonperforming assets decreased $9.6 million or 12% since year-end 2012



	Quarter Ended March 31,
	2013			2012
Net income (in millions)	$	12.6		$	12.8
Net income available to common stockholders (in millions)	12.1			11.8
Diluted earnings per common share	0.70			0.71

Return on average assets	1.00		%	1.12		%
Return on average common equity	15.18			17.27
Net interest margin	3.77			4.23



“Like 2012, Heartland is off to an excellent start in 2013. With first quarter net income of $12.6 million, we had our fourth best quarter on record. The company's strong performance is the result of solid net interest income along with a sharp drop in the provision for loan and lease losses.” Lynn B. Fuller, chairman, president and chief executive officer, Heartland Financial USA, Inc.