Parent Company Only Financial Information

12 Months Ended

Dec. 31, 2019

Condensed Financial Information Disclosure [Abstract]

Parent Company Only Financial Information

PARENT COMPANY ONLY FINANCIAL INFORMATION

Condensed financial information for Heartland Financial USA, Inc. is as follows:

BALANCE SHEETS
(Dollars in thousands)
	December 31,
	2019		2018
Assets:
Cash and interest bearing deposits	$	61,866	$	39,666
Investment in subsidiaries	1,765,995		1,538,766
Other assets	49,002		30,321
Due from subsidiaries	—		6,000
Total assets	$	1,876,863	$	1,614,753
Liabilities and stockholders’ equity:
Other borrowings	$	271,046	$	269,553
Accrued expenses and other liabilities	27,680		20,025
Total liabilities	298,726		289,578
Stockholders’ equity:
Common stock	36,704		34,477
Capital surplus	839,857		743,095
Retained earnings	702,502		579,252
Accumulated other comprehensive loss	(926)		(31,649)
Total stockholders’ equity	1,578,137		1,325,175
Total liabilities and stockholders’ equity	$	1,876,863	$	1,614,753

INCOME STATEMENTS
(Dollars in thousands)
	For the Years Ended December 31,
	2019		2018		2017
Operating revenues:
Dividends from subsidiaries	$	137,000	$	85,000	$	70,850
Securities gains, net	—		—		3,021
Other	893		493		2,292
Total operating revenues	137,893		85,493		76,163
Operating expenses:
Interest	15,044		14,371		13,269
Salaries and employee benefits	4,072		3,639		3,146
Professional fees	3,029		2,841		2,379
Other operating expenses	15,559		12,510		7,889
Total operating expenses	37,704		33,361		26,683
Equity in undistributed earnings	34,307		52,570		16,212
Income before income tax benefit	134,496		104,702		65,692
Income tax benefit	14,633		12,296		9,580
Net income	149,129		116,998		75,272
Preferred dividends	—		(39)		(58)
Interest expense on convertible preferred debt	—		—		12
Net income available to common stockholders	$	149,129	$	116,959	$	75,226

STATEMENTS OF CASH FLOWS
(Dollars in thousands)
	For the Years Ended December 31,
	2019		2018		2017
Cash flows from operating activities:
Net income	$	149,129	$	116,998	$	75,272
Adjustments to reconcile net income to net cash provided  by operating activities:
Undistributed earnings of subsidiaries	(34,307)		(52,570)		(16,212)
Security gains, net	—		—		(3,021)
Gain on extinguishment of debt	(375)		—		(1,200)
Increase (decrease) in accrued expenses and other liabilities	3,274		5,336		(4,160)
Increase in other assets	(12,248)		(1,559)		(567)
Excess tax benefits from stock based compensation	270		674		1,246
Other, net	4,103		5,401		4,714
Net cash provided by operating activities	109,846		74,280		56,072
Cash flows from investing activities:
Capital contributions to subsidiaries	(46,583)		(30,696)		—
Repayment of advances from subsidiaries	6,000		—		—
Proceeds from sales of available for sale securities	—		—		2,868
Proceeds from sale of other investments	—		—		211
Net assets acquired	(594)		(13,504)		(62,813)
Net cash used by investing activities	(41,177)		(44,200)		(59,734)
Cash flows from financing activities:
Proceeds on short-term revolving credit line	—		25,000		20,000
Proceeds from borrowings	—		30,000		—
Repayments on short-term revolving credit line	—		(25,000)		(20,000)
Repayments of borrowings	(20,023)		(25,759)		(9,016)
Payment for the redemption of debt	(2,500)		—		(13,800)
Cash dividends paid	(24,607)		(19,357)		(14,557)
Purchase of treasury stock	—		(97)		(625)
Proceeds from issuance of common stock	661		489		963
Net cash used by financing activities	(46,469)		(14,724)		(37,035)
Net increase (decrease) in cash and cash equivalents	22,200		15,356		(40,697)
Cash and cash equivalents at beginning of year	39,666		24,310		65,007
Cash and cash equivalents at end of year	$	61,866	$	39,666	$	24,310
Supplemental disclosure:
Conversion of convertible debt to common stock	$	—	$	—	$	558
Conversion/redemption of Series D preferred stock to common stock	$	—	$	938	$	419
Stock consideration granted for acquisitions	$	92,258	$	238,075	$	175,196