EX-99.1 2 ex991q42021pressrelease.htm EX-99.1 Document

sightlf-logoxtagxtmxpms533a.jpg
newslogoa.jpg
CONTACT:FOR IMMEDIATE RELEASE
Bryan R. McKeagJanuary 31, 2022
Executive Vice President
Chief Financial Officer
(563) 589-1994
bmckeag@htlf.com

HEARTLAND FINANCIAL USA, INC. REPORTS ANNUAL EARNINGS AND FOURTH QUARTER RESULTS AS OF DECEMBER 31, 2021

Highlights
§Record annual net income available to common stockholders of $211.9 million or $5.00 per diluted common share
§Quarterly net income available to common stockholders of $47.6 million or $1.12 per diluted common share
§Annual loan growth of $689.4 million or 8%, exclusive of Paycheck Protection Program ("PPP") loans
§
Quarterly loan growth of $309.0 million or 13% annualized, exclusive of PPP loans
§Nonperforming assets to total assets declined to 0.37% and 30-89 day loan delinquencies fell to 0.07% of total loans for the fourth quarter
§Net loan charge-offs for the quarter of $637,000 or 0.03% of average loans, and net charge offs for the year of $3.8 million or 0.04% of average loans
§HTLF Board of Directors approved a consolidation plan for its eleven bank charters
Quarter Ended
December 31,		Year Ended December 31,
2021202020212020
Net income available to common stockholders (in millions)$47.6 $37.8 $211.9 $133.5 
Diluted earnings per common share1.12 0.98 5.00 3.57 
Return on average assets1.03 %0.97 %1.19 %0.93 %
Return on average common equity9.15 8.50 10.49 8.06 
Return on average tangible common equity (non-GAAP)(1)
13.47 12.77 15.59 12.28 
Net interest margin3.08 3.51 3.29 3.65 
Net interest margin, fully tax-equivalent (non-GAAP)(1)
3.12 3.55 3.33 3.69 
Efficiency ratio, fully-tax equivalent (non-GAAP)(1)
63.86 54.93 59.48 56.65 
(1) Refer to "Non-GAAP Measures" in this earnings release for additional information on the usage and presentation of these non-GAAP measures, and refer to the financial tables for reconciliations to the most directly comparable GAAP measures.

"HTLF completed a successful year with record net income available to common stockholders of $211.9 million, or $5.00 per diluted common share. Our success was highlighted by strong loan growth and excellent credit quality."
Bruce K. Lee, president and chief executive officer, HTLF


Dubuque, Iowa, Monday, January 31, 2022-Heartland Financial USA, Inc. (NASDAQ: HTLF) today reported the following results for the quarter ended December 31, 2021 compared to the quarter ended December 31, 2020:
•Net income available to common stockholders of $47.6 million compared to $37.8 million, an increase of $9.8 million or 26%.
•Earnings per diluted common share of $1.12 compared to $0.98, an increase of $0.14 or 14%.
•Net interest income of $137.2 million compared to $132.6 million, an increase of $4.6 million or 3%.
•Return on average common equity of 9.15% and return on average assets of 1.03% compared to 8.50% and 0.97%, respectively.
•Return on average tangible common equity (non-GAAP) was 13.47% compared to 12.77%.

HTLF reported the following results for the year ended December 31, 2021 compared to the year ended December 31, 2020:
•Net income available to common stockholders of $211.9 million compared to $133.5 million, an increase of $78.4 million or 59%.
•Earnings per diluted common share of $5.00 compared to $3.57, an increase of $1.43 or 40%.
•Net interest income of $560.6 million compared to $491.7 million, an increase of $68.8 million or 14%.
•Return on average common equity was 10.49% and return on average assets was 1.19% compared to 8.06% and 0.93%, respectively.
•Return on average tangible common equity (non-GAAP) of 15.59% compared to 12.28%.

Commenting on HTLF's 2021 results, Bruce K. Lee, HTLF’s president and chief executive officer, said, "HTLF completed a successful year with record net income available to common stockholders of $211.9 million, or $5.00 per diluted common share. Our success was highlighted by strong loan growth and excellent credit quality."

Recent Developments

In the fourth quarter of 2021, HTLF began evaluating the consolidation of its eleven bank charters as part of its ongoing efforts to improve operational efficiency. As a result, the HTLF Board of Directors approved a plan to consolidate its eleven bank charters into a single Colorado based charter that will continue to operate under separate bank brands in each market. The plan remains subject to regulatory approval. The consolidation project is currently underway and is expected to be completed by the end of 2023.

Net Interest Income and Net Interest Margin

Net interest margin, expressed as a percentage of average earning assets, was 3.08% (3.12% on a fully tax-equivalent basis, non-GAAP) during the fourth quarter of 2021, compared to 3.51% (3.55% on a fully tax-equivalent basis, non-GAAP) during the fourth quarter of 2020.

Total interest income and average earning asset changes for the fourth quarter of 2021 compared to the fourth quarter of 2020 were:
•Total interest income was $144.0 million, which was an increase of $3.2 million or 2% from $140.8 million and primarily attributable to an increase in average earning assets partially offset by lower yields.
•Total interest income on a tax-equivalent basis was $146.0 million, which was an increase of $3.7 million or 3% from $142.4 million.
•Average earning assets increased $2.64 billion or 18% to $17.68 billion compared to $15.04 billion, which was primarily attributable to recent acquisitions and loan growth, including PPP loans.
•The average rate on earning assets decreased 49 basis points to 3.28% compared to 3.77%, which was primarily due to recent decreases in market interest rates and a shift in earning asset mix. Total average securities were 44% of total average earning assets compared to 37%.

Total interest expense and average interest bearing liability changes for the fourth quarter of 2021 compared to the fourth quarter of 2020 were:


•Total interest expense was $6.8 million, a decrease of $1.4 million or 17% from $8.3 million, based on a decrease in the average interest rate paid, which was partially offset by an increase in average interest bearing liabilities.
•The average interest rate paid on Heartland's interest bearing liabilities decreased to 0.27% compared to 0.36%, which was primarily due to recent decreases in market interest rates.
•Average interest bearing deposits increased $1.41 billion or 17% to $9.66 billion from $8.25 billion which was primarily attributable to recent acquisitions and deposit growth.
•The average interest rate paid on Heartland's interest bearing deposits decreased 9 basis points to 0.13% compared to 0.22%.
•Average borrowings decreased $253.7 million to $548.9 million from $802.5 million. The average interest rate paid on Heartland's borrowings was 2.66% compared to 1.81%.

Net interest income increased for the fourth quarter of 2021 compared to the fourth quarter of 2020:
•Net interest income totaled $137.2 million compared to $132.6 million, which was an increase of $4.6 million or 3%.
•Net interest income on a tax-equivalent basis (non-GAAP) totaled $139.2 million compared to $134.1 million, which was an increase of $5.1 million or 4%.

Noninterest Income and Noninterest Expense

Total noninterest income was $32.7 million during the fourth quarter of 2021 compared to $32.6 million during the fourth quarter of 2020, an increase of $109,000 or less than 1%. Significant changes by noninterest income category for the fourth quarter of 2021 compared to the fourth quarter of 2020 were:
•Service charges and fees increased $2.6 million or 21% to $15.3 million from $12.7 million. The increase was primarily attributable to acquisitions completed in the fourth quarter of 2020.
•Trust fees increased $874,000 or 16% to $6.4 million from $5.5 million. The increase was primarily attributable to market value increases of assets under management.
•Net securities gains totaled $1.6 million compared to $2.8 million, which was a decrease of $1.3 million or 45%.
•Net gains of sales of loans held for sale decreased $3.0 million to $4.2 million compared to $7.1 million, primarily due to a decrease of loans sold to the secondary market.

Total noninterest expense for the fourth quarter of 2021 was $115.4 million compared to $99.3 million for the same quarter of 2020, which was an increase of $16.1 million or 16%. Significant changes within the noninterest expense category for the fourth quarter of 2021 compared to the fourth quarter of 2020 were:
•Salaries and employee benefits totaled $63.0 million compared to $51.6 million, which was an increase of $11.4 million or 22%. The increase was primarily attributable to higher salary and benefit expenses as a result of more full time equivalent employees, including those from the acquisitions completed in the fourth quarter of 2020 and the addition of specialized commercial and agribusiness lending teams in the third quarter of 2021. Total full time equivalent employees were 2,249 compared to 2,013, which was an increase of 236 or 12%.
•Professional fees totaled $17.6 million compared to $15.1 million, which was an increase of $2.5 million or 17%. The increase was primarily attributable to recent technology and automation projects and acquisitions completed in the fourth quarter of 2020.
•Advertising expense totaled $2.2 million compared to $1.1 million, which was an increase of $1.1 million or 100%. The increase was primarily attributable to the resumption of in-person customer events and the acquisitions completed in the fourth quarter of 2020.
•Net losses on sales/valuation of assets totaled $214,000 compared to $2.6 million. HTLF recorded losses of $481,000 associated with branch optimization activities in the fourth quarter of 2021, which were offset by gains of $267,000 related to sales of repossessed assets. The losses recorded in the fourth quarter of 2020 included $2.3 million of write-downs on fixed assets associated with branch optimization activities.
•Other noninterest expenses totaled $14.6 million compared to $11.0 million, which was an increase of $3.6 million or 33%. The increase was primarily attributable to increased travel expenses and customer entertainment activities as in-person meetings and events resumed in 2021 and the acquisitions completed in the fourth quarter of 2020.



Heartland's effective tax rate was 17.16% for the fourth quarter of 2021 compared to 18.52% for the fourth quarter of 2020. The following items impacted Heartland's fourth quarter 2021 and 2020 tax calculations:
•Solar energy tax credits of $2.5 million and $461,000.
•Federal low-income housing tax credits of $135,000 and $195,000.
•New markets tax credits of $75,000 compared to $75,000.
•Historic rehabilitation tax credits of $272,000 and $1.1 million.
•Tax-exempt interest income as a percentage of pre-tax income of 9.86% compared to 11.82%.
•Tax benefits of $491,000 and $617,000 related to the release of valuation allowances on deferred tax assets.

For the years ended December 31, 2021 and 2020, Heartland's effective tax rate was 20.10% and 20.72%, respectively.

Total Assets, Total Loans and Total Deposits

Total assets were $19.27 billion at December 31, 2021, an increase of $1.37 billion or 8% from $17.91 billion at year-end 2020. Securities represented 40% and 35% of total assets at December 31, 2021, and December 31, 2020, respectively.

Total loans held to maturity were $9.95 billion at December 31, 2021, $9.85 billion at September 30, 2021 and $10.02 billion at December 31, 2020. Excluding total PPP loans, loans increased $309.0 million or 13% annualized during the fourth quarter of 2021 and $689.4 million or 8% since year-end 2020.

Significant changes by loan category at December 31, 2021 compared to September 30, 2021 included:
•Commercial and business lending, which includes commercial and industrial PPP, and owner occupied commercial real estate loans, increased $2.5 million or less than 1% to $5.09 billion at December 31, 2021, compared to $5.08 billion at September 30, 2021.
•PPP loans originated in 2020 ("PPP I") loans decreased $47.2 million or 64%. PPP loans originated in 2021 ("PPP II") decreased $162.2 million or 48%.
•Excluding total PPP loans, commercial and business lending increased $211.8 million or 5% to $4.89 billion from $4.67 billion.
•Agricultural and agricultural real estate loans totaled $753.8 million compared to $684.7 million, an increase of $69.1 million or 10%.

Significant changes by loan category at December 31, 2021 compared to December 31, 2020 included:
•Commercial and business lending, which includes commercial and industrial PPP, and owner occupied commercial real estate loans, decreased $183.7 million or 3% to $5.09 billion at December 31, 2021, compared to $5.27 billion at December 31, 2020.
•PPP I loans decreased $930.7 million or 97%. PPP II loans totaled $172.8 million.
•Excluding total PPP loans, commercial and business lending increased $574.2 million or 13% to $4.89 billion from $4.31 billion.
•Commercial real estate lending, which includes non-owner occupied commercial real estate and construction loans, increased $82.0 million or 3% to $2.87 billion from $2.78 billion.
•Agricultural and agricultural real estate loans totaled $753.8 million, an increase of $39.2 million or 5% from $714.5 million.
Total deposits were $16.42 billion as of December 31, 2021, $16.02 billion as of September 30, 2021 and $14.98 billion at December 31, 2020. Significant deposit changes by category at December 31, 2021 compared to September 30, 2021 included:
•Demand deposits decreased $42.4 million or 1% to $6.50 billion compared to $6.54 billion.
•Savings deposits increased $481.7 million or 6% to $8.90 billion from $8.42 billion.
•Time deposits decreased $44.3 million or 4% to $1.02 billion from $1.07 billion.

Significant deposit changes by category at December 31, 2021 compared to December 31, 2020 included:


•Demand deposits increased $806.5 million or 14% to $6.50 billion compared to $5.69 billion.
•Savings deposits increased $878.2 million or 11% to $8.90 billion from $8.02 billion.
•Time deposits decreased $247.4 million or 19% to $1.02 billion from $1.27 billion.

Year over year growth in non-time deposits was positively impacted by payments related to federal government stimulus programs and other COVID-19 relief programs.

Provision and Allowance

Provision and Allowance for Credit Losses for Loans
Provision benefit for credit losses for loans for the fourth quarter of 2021 was $6.8 million, which was a decrease of $22.9 million from $16.1 million of expense recorded in the fourth quarter of 2020. The provision expense recorded in the fourth quarter of 2020 included $9.6 million of provision expense for loans acquired in the quarter. The provision benefit for the fourth quarter of 2021 was impacted by several factors, including:
•Decrease in nonperforming loans of $13.3 million to $69.9 million or 0.70% of total loans compared to $83.2 million or 0.84% of total loans at September 30, 2021, and $88.1 million or 0.88% of total loans at December 31, 2020.
•Improved macroeconomic outlook compared to the fourth quarter of 2020 and consistent economic outlook compared to the third quarter of 2021.

Heartland's allowance for credit losses for loans totaled $110.1 million at December 31, 2021, compared to $117.5 million at September 30, 2021, and $131.6 million at December 31, 2020, respectively. The following items have impacted Heartland's allowance for credit losses for loans for the year ended December 31, 2021:
•Provision benefit for the year ended December 31, 2021, totaled $17.7 million.
•Net charge offs of $3.8 million were recorded for the year or 0.04% of average loans.

Provision and Allowance for Credit Losses for Unfunded Commitments
Heartland's allowance for unfunded commitments totaled $15.5 million and $15.3 million at December 31, 2021 and December 31, 2020, respectively. The following impacted Heartland's allowance for credit losses for unfunded commitments during 2020:
•Provision expense of $1.5 million was recorded for the fourth quarter of 2021, and provision expense for the year ended December 31, 2021 totaled $182,000.
•Unfunded commitments increased $583.3 million or 18% to $3.83 billion at December 31, 2021 compared to $3.25 billion at December 31, 2020.

Total Provision and Allowance for Lending Related Credit Losses
The net provision benefit for lending related credit losses was $5.3 million for the fourth quarter of 2021 compared to provision expense of $17.1 million for the fourth quarter of 2020. The total allowance for lending related credit losses was $125.6 million at December 31, 2021, which was 1.26% of total loans as of December 31, 2021, compared to $146.9 million or 1.47% of total loans as of December 31, 2020. Excluding PPP loans, which are fully guaranteed, the total allowance for lending related credit losses was 1.29% and 1.62% of loans at December 31, 2021 and December 31, 2020, respectively.

Nonperforming Assets

Nonperforming assets decreased $23.1 million or 24% to $71.9 million, which was 0.37% of total assets at December 31, 2021, compared to $95.0 million or 0.53% of total assets at December 31, 2020. Nonperforming loans were $69.9 million or 0.70% of total loans at December 31, 2021, compared to $88.1 million or 0.88% of total loans at December 31, 2020. At December 31, 2021, loans delinquent 30-89 days were 0.07% of total loans compared to 0.23% of total loans at December 31, 2020.



Non-GAAP Financial Measures

This earnings release contains references to financial measures which are not defined by generally accepted accounting principles ("GAAP"). Management believes the non-GAAP measures are helpful for investors to analyze and evaluate the company's financial condition and operating results. However, these non-GAAP measures have inherent limitations and should not be considered a substitute for operating results determined in accordance with GAAP. Additionally, because non-GAAP measures are not standardized, it may not be possible to compare the non-GAAP measures in this earnings release with other companies' non-GAAP measures. Reconciliations of each non-GAAP measure to the most directly comparable GAAP measure may be found in the financial tables in this earnings release.

Below are the non-GAAP measures included in this earnings release, management's reason for including each measure and the method of calculating each measure:
•Annualized net interest margin, fully tax-equivalent, adjusts net interest income for the tax-favored status of certain loans and securities. Management believes this measure enhances the comparability of net interest income arising from taxable and tax-exempt sources.
•Efficiency ratio, fully tax equivalent, expresses noninterest expenses as a percentage of fully tax-equivalent net interest income and noninterest income. This efficiency ratio is presented on a tax-equivalent basis which adjusts net interest income and noninterest expenses for the tax favored status of certain loans, securities, and tax credit projects. Management believes the presentation of this non-GAAP measure provides supplemental useful information for proper understanding of the financial results as it enhances the comparability of income and expenses arising from taxable and nontaxable sources and excludes specific items as noted in reconciliation contained in this earnings release.
•Net interest income, fully tax equivalent, is net income adjusted for the tax-favored status of certain loans and securities. Management believes this measure enhances the comparability of net interest income arising from taxable and tax-exempt sources.
•Tangible book value per common share is total common equity less goodwill and core deposit and customer relationship intangibles, net, divided by common shares outstanding, net of treasury. This measure is included as it is considered to be a critical metric to analyze and evaluate use of equity, financial condition and capital strength.
•Tangible common equity ratio is total common equity less goodwill and core deposit and customer relationship intangibles, net, divided by total assets less goodwill and core deposit and customer relationship intangibles, net. This measure is included as it is considered to be a critical metric to analyze and evaluate financial condition and capital strength.
•Annualized return on average tangible common equity is net income excluding intangible amortization calculated as (1) net income excluding tax-effected core deposit and customer relationship intangibles amortization, divided by (2) average common equity less goodwill and core deposit and customer relationship intangibles, net. This measure is included as it is considered to be a critical metric to analyze and evaluate use of equity, financial condition and capital strength.

Conference Call Details

HTLF will host a conference call for shareholders, analysts and other interested parties at 5:00 p.m. EDT today. To join, please register in advance of the conference using the link provided below. Upon registering, participant dial-in numbers, Direct Event passcode and unique registrant ID will be provided. Direct Event online registration can be found at: http://www.directeventreg.com/registration/event/8779156. In the 10 minutes prior to the call start time, participants need to use the conference access information provided in the email received at the point of registering. A replay will be available until January 30, 2023, by logging on to www.htlf.com.

About HTLF

Heartland Financial USA, Inc., operating under the brand name HTLF, is a financial services company with assets of $19.27 billion. HTLF has banks serving communities in Arizona, California, Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Montana, New Mexico, Texas and Wisconsin. HTLF is committed to its core commercial business, supported by a strong retail operation, and provides a diversified line of financial services including treasury management, residential mortgage, wealth management, investment and insurance. Additional information is available at www.htlf.com.



Safe Harbor Statement

This release (including any information incorporated herein by reference), and future oral and written statements of the company and its management, may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the business, financial condition, results of operations, plans, objectives and future performance of HTLF.

Any statements about the company's expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. Forward-looking statements may include information about possible or assumed future results of the company's operations or performance. These forward-looking statements are generally identified by the use of the words such as "believe", "expect", "intent", "anticipate", "plan", "intend", "estimate", "project", "may", "will", "would", "could", "should", "may", "view", "opportunity", "potential", or similar or negative expressions of these words or phrases that are used in this release, and future oral and written statements of the company and its management. Although the company may make these statements based on management’s experience, beliefs, expectations, assumptions and best estimate of future events, the ability of the company to predict results or the actual effect or outcomes of plans or strategies is inherently uncertain, and there may be events or factors that management has not anticipated. Therefore, the accuracy and achievement of such forward-looking statements and estimates are subject to a number of risks, 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 the company currently believes could have a material effect on its operations and future prospects, are detailed below and in the risk factors in HTLF's reports filed with the Securities and Exchange Commission ("SEC"), including the "Risk Factors" section under Item 1A of Part I of the company’s Annual Report on Form 10-K for the year ended December 31, 2020, include, among others:
•COVID-19 Pandemic Risks, including risks related to the ongoing COVID-19 pandemic and measures enacted by the U.S. federal and state governments and adopted by private businesses in response to the COVID-19 pandemic;
•Economic and Market Conditions Risks, including risks related to changes in the U.S. economy in general and in the local economies in which HTLF conducts its operations and future civil unrest, natural disasters, pandemics, persistent inflation, supply chain issues, labor shortages, terrorist threats or acts of war;
•Credit Risks, including risks of increasing credit losses due to deterioration in the financial condition of HTLF's borrowers, changes in asset and collateral values and climate and other borrower industry risks which may impact the provision for credit losses and net charge-offs;
•Liquidity and Interest Rate Risks, including the impact of capital market conditions, rising interest rates and changes in monetary policy on our borrowings and net interest income;
•Operational Risks, including processing, information systems, cybersecurity, vendor, business interruption, and fraud risks;
•Strategic and External Risks, including competitive forces impacting our business and strategic acquisition risks;
•Legal, Compliance and Reputational Risks, including regulatory and litigation risks; and
•Risks of Owning Stock in HTLF, including stock price volatility and dilution as a result of future equity offerings and acquisitions.

There can be no assurance that other factors not currently anticipated by HTLF will not materially and adversely affect the company’s business, financial condition and results of operations. In addition, many of these risks and uncertainties are currently amplified by and may continue to be amplified by the COVID-19 pandemic and the impact of varying governmental responses that affect the company’s customers and the economies where they operate. Additionally, all statements in this release, including forward-looking statements speak only as of the date they are made. The company does not undertake and specifically disclaims any obligation to publicly release the results of any revisions which may be made to or correct or update any forward-looking statement to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events or to otherwise update any statement in light of new information or future events. Further information concerning HTLF and its business, including additional factors that could materially affect the company’s financial results, is included in the company’s filings with the SEC.
-FINANCIAL TABLES FOLLOW-
###



HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
For the Quarter Ended
December 31,		For the Year Ended
December 31,
2021202020212020
Interest Income
Interest and fees on loans$107,721 $108,865 $444,137 $424,941 
Interest on securities:
Taxable30,637 28,154 125,010 98,263 
Nontaxable5,595 3,735 19,268 12,484 
Interest on federal funds sold— — 1 — 
Interest on deposits with other banks and short-term investments 86 77 344 924 
Total Interest Income144,039 140,831 588,760 536,612 
Interest Expense
Interest on deposits3,168 4,609 14,797 30,287 
Interest on short-term borrowings123 175 471 610 
Interest on other borrowings3,554 3,472 12,932 13,986 
Total Interest Expense6,845 8,256 28,200 44,883 
Net Interest Income137,194 132,575 560,560 491,729 
Provision (benefit) for credit losses(5,313)17,072 (17,575)67,066 
Net Interest Income After Provision for Credit Losses142,507 115,503 578,135 424,663 
Noninterest Income
Service charges and fees15,349 12,725 59,703 47,467 
Loan servicing income781 997 3,276 2,977 
Trust fees6,380 5,506 24,417 20,862 
Brokerage and insurance commissions962 779 3,546 2,756 
Securities gains (losses), net1,563 2,829 5,910 7,793 
Unrealized gain (loss) on equity securities, net(27)36 58 640 
Net gains on sale of loans held for sale4,151 7,104 20,605 28,515 
Valuation adjustment on servicing rights502 (102)1,088 (1,778)
Income on bank owned life insurance1,056 1,021 3,762 3,554 
Other noninterest income2,013 1,726 6,570 7,505 
Total Noninterest Income32,730 32,621 128,935 120,291 
Noninterest Expense
Salaries and employee benefits63,031 51,615 240,114 202,668 
Occupancy7,282 6,849 29,965 26,554 
Furniture and equipment3,364 3,913 13,323 12,514 
Professional fees17,631 15,117 64,600 54,068 
Advertising2,218 1,107 7,257 5,235 
Core deposit and customer relationship intangibles amortization2,169 2,501 9,395 10,670 
Other real estate and loan collection expenses, net363 468 990 1,340 
(Gain) loss on sales/valuations of assets, net214 2,621 588 5,101 
Acquisition, integration and restructuring costs1,989 2,186 5,331 5,381 
Partnership investment in tax credit projects2,549 1,899 6,303 3,801 
Other noninterest expenses14,576 10,993 53,946 43,631 
Total Noninterest Expense115,386 99,269 431,812 370,963 
Income Before Income Taxes59,851 48,855 275,258 173,991 
Income taxes10,271 9,046 55,335 36,053 
Net Income49,580 39,809 219,923 137,938 
Preferred dividends(2,012)(2,014)(8,050)(4,451)
Net Income Available to Common Stockholders$47,568 $37,795 $211,873 $133,487 
Earnings per common share-diluted$1.12 $0.98 $5.00 $3.57 
Weighted average shares outstanding-diluted42,479,442 38,534,082 42,410,611 37,356,524 



HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
For the Quarter Ended
12/31/20219/30/20216/30/20213/31/202112/31/2020
Interest Income
Interest and fees on loans$107,721 $112,062 $111,915 $112,439 $108,865 
Interest on securities:
Taxable30,637 32,384 31,546 30,443 28,154 
Nontaxable5,595 4,609 4,561 4,503 3,735 
Interest on federal funds sold— — — 1 — 
Interest on deposits with other banks and short-term investments 86 132 60 66 77 
Total Interest Income144,039 149,187 148,082 147,452 140,831 
Interest Expense
Interest on deposits3,168 3,444 3,790 4,395 4,609 
Interest on short-term borrowings123 98 98 152 175 
Interest on other borrowings3,554 3,102 2,976 3,300 3,472 
Total Interest Expense6,845 6,644 6,864 7,847 8,256 
Net Interest Income137,194 142,543 141,218 139,605 132,575 
Provision (benefit) for credit losses(5,313)(4,534)(7,080)(648)17,072 
Net Interest Income After Provision for Credit Losses142,507 147,077 148,298 140,253 115,503 
Noninterest Income
Service charges and fees15,349 15,551 15,132 13,671 12,725 
Loan servicing income781 784 873 838 997 
Trust fees6,380 6,221 6,039 5,777 5,506 
Brokerage and insurance commissions962 866 865 853 779 
Securities gains (losses), net1,563 1,535 2,842 (30)2,829 
Unrealized gain (loss) on equity securities, net(27)112 83 (110)36 
Net gains on sale of loans held for sale4,151 5,281 4,753 6,420 7,104 
Valuation adjustment on servicing rights502 195 (526)917 (102)
Income on bank owned life insurance1,056 940 937 829 1,021 
Other noninterest income2,013 1,239 2,166 1,152 1,726 
Total Noninterest Income32,730 32,724 33,164 30,317 32,621 
Noninterest Expense
Salaries and employee benefits63,031 60,689 57,332 59,062 51,615 
Occupancy7,282 7,366 7,399 7,918 6,849 
Furniture and equipment3,364 3,365 3,501 3,093 3,913 
Professional fees17,631 17,242 16,237 13,490 15,117 
Advertising2,218 1,921 1,649 1,469 1,107 
Core deposit and customer relationship intangibles amortization2,169 2,295 2,415 2,516 2,501 
Other real estate and loan collection expenses, net363 78 414 135 468 
(Gain) loss on sales/valuations of assets, net214 (3)183 194 2,621 
Acquisition, integration and restructuring costs1,989 204 210 2,928 2,186 
Partnership investment in tax credit projects2,549 2,374 1,345 35 1,899 
Other noninterest expenses14,576 15,096 12,691 11,583 10,993 
Total Noninterest Expense115,386 110,627 103,376 102,423 99,269 
Income Before Income Taxes59,851 69,174 78,086 68,147 48,855 
Income taxes10,271 13,250 16,481 15,333 9,046 
Net Income49,580 55,924 61,605 52,814 39,809 
Preferred dividends(2,012)(2,013)(2,012)(2,013)(2,014)
Net Income Available to Common Stockholders$47,568 $53,911 $59,593 $50,801 $37,795 
Earnings per common share-diluted$1.12 $1.27 $1.41 $1.20 $0.98 
Weighted average shares outstanding-diluted42,479,442 42,415,993 42,359,873 42,335,747 38,534,082 



HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
As of
12/31/20219/30/20216/30/20213/31/202112/31/2020
Assets
Cash and due from banks$163,895 $192,247 $208,702 $198,177 $219,243 
Interest bearing deposits with other banks and other short-term investments271,704 135,158 240,426 269,685 118,660 
Cash and cash equivalents435,599 327,405 449,128 467,862 337,903 
Time deposits in other financial institutions2,894 3,138 3,138 3,138 3,129 
Securities:
Carried at fair value7,530,374 7,449,936 6,543,978 6,370,495 6,127,975 
Held to maturity, at cost84,709 85,354 85,439 85,293 88,839 
Other investments, at cost82,567 83,332 76,809 74,935 75,253 
Loans held for sale21,640 37,078 33,248 43,037 57,949 
Loans:
Held to maturity9,954,572 9,854,907 10,012,014 10,050,456 10,023,051 
 Allowance for credit losses(110,088)(117,533)(120,726)(130,172)(131,606)
Loans, net9,844,484 9,737,374 9,891,288 9,920,284 9,891,445 
Premises, furniture and equipment, net215,827 221,996 226,358 225,047 226,094 
Goodwill576,005 576,005 576,005 576,005 576,005 
Core deposit and customer relationship intangibles, net32,988 35,157 37,452 39,867 42,383 
Servicing rights, net6,890 6,351 6,201 6,953 6,052 
Cash surrender value on life insurance191,722 190,576 189,619 188,521 187,664 
Other real estate, net1,927 4,744 6,314 6,236 6,624 
Other assets246,923 237,779 246,029 236,754 281,024 
Total Assets$19,274,549 $18,996,225 $18,371,006 $18,244,427 $17,908,339 
Liabilities and Equity
Liabilities
Deposits:
 Demand$6,495,326 $6,537,722 $6,299,289 $6,175,946 $5,688,810 
 Savings8,897,909 8,416,204 8,189,223 8,179,251 8,019,704 
 Time1,024,020 1,068,317 1,126,606 1,203,854 1,271,391 
Total deposits16,417,255 16,022,243 15,615,118 15,559,051 14,979,905 
Short-term borrowings131,597 265,620 152,563 140,597 167,872 
Other borrowings372,072 371,765 271,244 349,514 457,042 
Accrued expenses and other liabilities171,447 164,345 172,295 139,058 224,289 
Total Liabilities17,092,371 16,823,973 16,211,220 16,188,220 15,829,108 
Stockholders' Equity
Preferred equity110,705 110,705 110,705 110,705 110,705 
Common stock42,275 42,250 42,245 42,174 42,094 
Capital surplus1,071,956 1,068,913 1,066,765 1,063,497 1,062,083 
Retained earnings962,994 926,834 883,484 833,171 791,630 
Accumulated other comprehensive income/(loss)(5,752)23,550 56,587 6,660 72,719 
Total Equity2,182,178 2,172,252 2,159,786 2,056,207 2,079,231 
Total Liabilities and Equity$19,274,549 $18,996,225 $18,371,006 $18,244,427 $17,908,339 



HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
For the Quarter Ended
12/31/20219/30/20216/30/20213/31/202112/31/2020
Average Balances
Assets$19,151,691 $18,608,775 $18,293,756 $17,964,723 $16,401,152 
Loans, net of unearned9,886,027 9,920,047 10,072,071 9,952,152 9,366,430 
Deposits16,265,476 15,817,778 15,576,345 15,044,561 13,518,020 
Earning assets17,681,917 17,123,824 16,819,978 16,460,124 15,042,079 
Interest bearing liabilities10,207,255 9,881,350 9,871,302 9,917,159 9,053,855 
Common equity2,061,973 2,072,593 1,980,904 1,963,674 1,769,575 
Total stockholders' equity2,172,678 2,183,298 2,091,609 2,074,379 1,880,280 
Tangible common equity (non-GAAP)(1)
1,451,950 1,460,309 1,366,285 1,346,270 1,238,691 
Key Performance Ratios
Annualized return on average assets1.03 %1.19 %1.35 %1.19 %0.97 %
Annualized return on average common equity (GAAP)9.15 10.32 12.07 10.49 8.50 
Annualized return on average tangible common equity (non-GAAP)(1)
13.47 15.14 18.05 15.90 12.77 
Annualized ratio of net charge-offs (recoveries) to average loans0.03 (0.05)0.12 0.06 0.01 
Annualized net interest margin (GAAP)3.08 3.30 3.37 3.44 3.51 
Annualized net interest margin, fully tax-equivalent (non-GAAP)(1)
3.12 3.34 3.41 3.48 3.55 
Efficiency ratio, fully tax-equivalent (non-GAAP)(1)
63.86 60.38 57.11 56.61 54.93 

For the Quarter Ended
December 31,		For the Year Ended
December 31,
2021202020212020
Average Balances
Assets$19,151,691 $16,401,152 $18,508,273 $14,782,605 
Loans, net of unearned9,886,027 9,366,430 9,957,290 9,035,973 
Deposits16,265,476 13,518,020 15,679,773 12,361,077 
Earning assets17,681,917 15,042,079 17,025,088 13,481,613 
Interest bearing liabilities10,207,255 9,053,855 9,969,820 8,344,798 
Common equity2,061,973 1,769,575 2,020,200 1,656,708 
Total stockholders' equity2,172,678 1,880,280 2,130,905 1,713,878 
Tangible common equity (non-GAAP)(1)
1,451,950 1,238,691 1,406,641 1,155,556 
Key Performance Ratios
Annualized return on average assets1.03 %0.97 %1.19 %0.93 %
Annualized return on average common equity (GAAP)9.15 8.50 10.49 8.06 
Annualized return on average tangible common equity (non-GAAP)(1)
13.47 12.77 15.59 12.28 
Annualized ratio of net charge-offs (recoveries) to average loans0.03 0.01 0.04 0.32 
Annualized net interest margin (GAAP)3.08 3.51 3.29 3.65 
Annualized net interest margin, fully tax-equivalent (non-GAAP)(1)
3.12 3.55 3.33 3.69 
Efficiency ratio, fully tax-equivalent(1)
63.86 54.93 59.48 56.65 
(1) Refer to "Non-GAAP Measures" in this earnings release for additional information on the usage and presentation of these non-GAAP measures, and refer to these financial tables for the reconciliations to the most directly comparable GAAP measures.




HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE AND FULL TIME EQUIVALENT EMPLOYEE DATA
As of and for the Quarter Ended
12/31/20219/30/20216/30/20213/31/202112/31/2020
Common Share Data
Book value per common share$49.00 $48.79 $48.50 $46.13 $46.77 
Tangible book value per common share (non-GAAP)(1)
$34.59 $34.33 $33.98 $31.53 $32.07 
Common shares outstanding, net of treasury stock42,275,264 42,250,092 42,245,452 42,173,675 42,093,862 
Tangible common equity ratio (non-GAAP)(1)
7.84 %7.89 %8.08 %7.54 %7.81 %
Other Selected Trend Information
Effective tax rate17.16 %19.15 %21.11 %22.50 %18.52 %
Full time equivalent employees2,249 2,163 2,091 2,131 2,013 
Loans Held to Maturity
Commercial and industrial$2,645,085 $2,538,369 $2,518,908 $2,421,260 $2,534,799 
Paycheck Protection Program ("PPP")199,883 409,247 829,175 1,155,328 957,785 
Owner occupied commercial real estate2,240,334 2,135,227 1,940,134 1,837,559 1,776,406 
Commercial and business lending5,085,302 5,082,843 5,288,217 5,414,147 5,268,990 
Non-owner occupied commercial real estate2,010,591 2,020,487 1,987,369 1,967,183 1,921,481 
Real estate construction856,119 814,001 854,295 796,027 863,220 
Commercial real estate lending2,866,710 2,834,488 2,841,664 2,763,210 2,784,701 
Total commercial lending7,952,012 7,917,331 8,129,881 8,177,357 8,053,691 
Agricultural and agricultural real estate753,753 684,670 679,608 683,969 714,526 
Residential mortgage829,283 840,356 800,884 786,994 840,442 
Consumer419,524 412,550 401,641 402,136 414,392 
Total loans held to maturity$9,954,572 $9,854,907 $10,012,014 $10,050,456 $10,023,051 
Total unfunded loan commitments$3,830,219 $3,583,417 $3,433,062 $3,306,042 $3,246,953 
(1) Refer to "Non-GAAP Measures" in this earnings release for additional information on the usage and presentation of these non-GAAP measures, and refer to these financial tables for the reconciliations to the most directly comparable GAAP measures.



HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
As of and for the Quarter Ended
12/31/20219/30/20216/30/20213/31/202112/31/2020
Allowance for Credit Losses-Loans
Balance, beginning of period$117,533 $120,726 $130,172 $131,606 $103,377 
Allowance for acquired purchased credit deteriorated loans— — — — 12,313 
Provision (benefit) for credit losses(6,808)(4,448)(6,466)16 16,132 
Charge-offs(1,953)(1,167)(3,497)(2,126)(1,104)
Recoveries1,316 2,422 517 676 888 
Balance, end of period$110,088 $117,533 $120,726 $130,172 $131,606 
Allowance for Unfunded Commitments
Balance, beginning of period$13,967 $14,002 $14,619 $15,280 $14,330 
Provision (benefit) for credit losses1,495 (35)(617)(661)950 
Balance, end of period$15,462 $13,967 $14,002 $14,619 $15,280 
Allowance for lending related credit losses$125,550 $131,500 $134,728 $144,791 $146,886 
Provision for Credit Losses
Provision (benefit) for credit losses-loans$(6,808)$(4,448)$(6,466)$16 $6,572 
Provision for credit losses-acquired loans — — — — 9,560 
Provision (benefit) for credit losses-unfunded commitments1,495 (35)(617)(661)(1,372)
Provision for credit losses-acquired unfunded commitments — — — — 2,322 
Provision for credit losses-held to maturity securities— (51)3 (3)(10)
Total provision (benefit) for credit losses$(5,313)$(4,534)$(7,080)$(648)$17,072 
Asset Quality
Nonaccrual loans$69,369 $82,375 $85,268 $91,718 $87,386 
Loans past due ninety days or more 550 861 97 171 720 
Other real estate owned1,927 4,744 6,314 6,236 6,624 
Other repossessed assets43 166 50 239 240 
Total nonperforming assets$71,889 $88,146 $91,729 $98,364 $94,970 
Performing troubled debt restructured loans$817 $1,817 $2,122 $2,394 $2,370 
Nonperforming Assets Activity
Balance, beginning of period$88,146 $91,729 $98,364 $94,970 $85,901 
Net loan (charge offs) recoveries(637)1,255 (2,980)(1,450)(216)
New nonperforming loans5,886 6,908 7,989 14,936 8,664 
Acquired nonperforming assets— — — — 12,781 
Reduction of nonperforming loans(1)
(18,429)(8,581)(10,948)(8,884)(10,811)
OREO/Repossessed assets sales proceeds(3,077)(3,165)(696)(1,208)(1,349)
Balance, end of period$71,889 $88,146 $91,729 $98,364 $94,970 
Asset Quality Ratios
Ratio of nonperforming loans to total loans0.70 %0.84 %0.85 %0.91 %0.88 %
Ratio of nonperforming loans and performing trouble debt restructured loans to total loans0.71 0.86 0.87 0.94 0.90 
Ratio of nonperforming assets to total assets0.37 0.46 0.50 0.54 0.53 
Annualized ratio of net loan charge-offs to average loans0.03 (0.05)0.12 0.06 0.01 
Allowance for loan credit losses as a percent of loans1.11 1.19 1.21 1.30 1.31 
Allowance for lending related credit losses as a percent of loans1.26 1.33 1.35 1.44 1.47 
Allowance for loan credit losses as a percent of nonperforming loans157.45 141.20 141.42 141.66 149.37 
Loans delinquent 30-89 days as a percent of total loans0.07 0.12 0.17 0.16 0.23 
(1) Includes principal reductions, transfers to performing status and transfers to OREO.


HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS
For the Quarter Ended
December 31, 2021September 30, 2021December 31, 2020
Average
Balance		InterestRateAverage
Balance		InterestRateAverage
Balance		InterestRate
Earning Assets
Securities:
Taxable$6,730,511 $30,637 1.81 %$6,244,097 $32,384 2.06 %$4,957,680 $28,154 2.26 %
Nontaxable(1)
964,712 7,082 2.91 759,073 5,835 3.05 543,845 4,728 3.46 
Total securities7,695,223 37,719 1.94 7,003,170 38,219 2.17 5,501,525 32,882 2.38 
Interest on deposits with other banks and other short-term investments218,809 86 0.16 322,430 132 0.16 292,436 77 0.10 
Federal funds sold— — — — — — 427 — — 
Loans:(2)
Commercial and industrial(1)
2,614,685 26,465 4.02 2,588,270 28,224 4.33 2,357,056 27,523 4.65 
PPP loans302,829 8,106 10.62 602,675 11,186 7.36 1,064,863 11,806 4.41 
Owner occupied commercial real estate2,166,768 22,007 4.03 1,990,538 20,048 4.00 1,597,446 18,605 4.63 
Non-owner occupied commercial real estate1,996,186 21,744 4.32 1,964,609 22,129 4.47 1,756,443 20,733 4.70 
Real estate construction837,716 9,390 4.45 835,976 9,591 4.55 859,941 9,723 4.50 
Agricultural and agricultural real estate697,521 7,089 4.03 674,510 7,415 4.36 554,596 6,535 4.69 
Residential mortgage853,208 8,615 4.01 855,734 9,068 4.20 785,852 9,288 4.70 
Consumer417,114 4,793 4.56 407,735 4,889 4.76 390,233 5,188 5.29 
Less: allowance for credit losses-loans(118,142)— — (121,823)— — (118,739)— — 
Net loans9,767,885 108,209 4.40 9,798,224 112,550 4.56 9,247,691 109,401 4.71 
Total earning assets17,681,917 146,014 3.28 %17,123,824 150,901 3.50 %15,042,079 142,360 3.77 %
Nonearning Assets1,469,774 1,484,951 1,359,073 
Total Assets$19,151,691 $18,608,775 $16,401,152 
Interest Bearing Liabilities
Savings$8,609,596 $2,160 0.10 %$8,364,326 $2,240 0.11 %$7,176,563 $2,166 0.12 %
Time deposits1,048,785 1,008 0.38 1,097,126 1,204 0.44 1,074,746 2,443 0.90 
Short-term borrowings176,956 123 0.28 139,001 98 0.28 268,464 175 0.26 
Other borrowings371,918 3,554 3.79 280,897 3,102 4.38 534,082 3,472 2.59 
Total interest bearing liabilities10,207,255 6,845 0.27 %9,881,350 6,644 0.27 %9,053,855 8,256 0.36 %
Noninterest Bearing Liabilities
Noninterest bearing deposits6,607,095 6,356,326 5,266,711 
Accrued interest and other liabilities164,663 187,801 200,306 
Total noninterest bearing liabilities6,771,758 6,544,127 5,467,017 
Equity2,172,678 2,183,298 1,880,280 
Total Liabilities and Equity$19,151,691 $18,608,775 $16,401,152 
Net interest income, fully tax-equivalent (non-GAAP)(1)(3)
$139,169 $144,257 $134,104 
Net interest spread(1)
3.01 %3.23 %3.41 %
Net interest income, fully tax-equivalent (non-GAAP) to total earning assets(1)(3)
3.12 %3.34 %3.55 %
Interest bearing liabilities to earning assets57.73 %57.71 %60.19 %
(1) Computed on a tax-equivalent basis using an effective tax rate of 21%.
(2) Nonaccrual loans and loans held for sale are included in the average loans outstanding.
(3) Refer to "Non-GAAP Measures" in this earnings release for additional information on the usage and presentation of these non-GAAP measures, and refer to these financial tables for the reconciliations to the most directly comparable GAAP measures.



HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS
For the Year Ended
December 31, 2021December 31, 2020
Average
Balance		InterestRateAverage
Balance		InterestRate
Earning Assets
Securities:
Taxable$6,135,732 $125,010 2.04 %$3,901,202 $98,263 2.52 %
Nontaxable(1)
799,283 24,390 3.05 424,199 15,802 3.73 
Total securities6,935,015 149,400 2.15 4,325,401 114,065 2.64 
Interest bearing deposits with other banks and other short-term investments254,630 344 0.14 225,024 924 0.41 
Federal funds sold3,457 1 0.03 107 — — 
Loans:(2)
Commercial and industrial(1)
2,543,514 111,473 4.38 2,437,183 118,513 4.86 
PPP loans734,139 40,627 5.53 779,183 25,285 3.25 
Owner occupied commercial real estate1,950,014 81,717 4.19 1,480,109 72,215 4.88 
Non-owner occupied commercial real estate1,969,910 87,728 4.45 1,589,932 78,178 4.92 
Real estate construction824,055 37,891 4.60 1,007,086 46,785 4.65 
Agricultural and agricultural real estate681,493 29,822 4.38 538,646 25,713 4.77 
Residential mortgage 846,573 36,768 4.34 793,821 38,210 4.81 
Consumer407,592 20,201 4.96 410,013 22,190 5.41 
Less: allowance for credit losses-loans(125,304)— — (104,892)— — 
Net loans9,831,986 446,227 4.54 8,931,081 427,089 4.78 
Total earning assets17,025,088 595,972 3.50 %13,481,613 542,078 4.02 %
Nonearning Assets1,483,185 1,300,992 
Total Assets$18,508,273 $14,782,605 
Interest Bearing Liabilities
Savings$8,311,825 $9,063 0.11 %$6,718,413 $16,560 0.25 %
Time deposits 1,137,097 5,734 0.50 1,088,185 13,727 1.26 
Short-term borrowings181,165 471 0.26 155,467 610 0.39 
Other borrowings339,733 12,932 3.81 382,733 13,986 3.65 
Total interest bearing liabilities9,969,820 28,200 0.28 %8,344,798 44,883 0.54 %
Noninterest Bearing Liabilities
Noninterest bearing deposits6,230,851 4,554,479 
Accrued interest and other liabilities176,697 169,450 
Total noninterest bearing liabilities6,407,548 4,723,929 
Equity2,130,905 1,713,878 
Total Liabilities and Equity$18,508,273 $14,782,605 
Net interest income, fully tax-equivalent (non-GAAP)(1)(3)
$567,772 $497,195 
Net interest spread(1)
3.22 %3.48 %
Net interest income, fully tax-equivalent (non-GAAP) to total earning assets(1)(3)
3.33 %3.69 %
Interest bearing liabilities to earning assets58.56 %61.90 %
(1) Computed on a tax-equivalent basis using an effective tax rate of 21%.
(2) Nonaccrual loans and loans held for sale are included in the average loans outstanding.
(3) Refer to "Non-GAAP Measures" in this earnings release for additional information on the usage and presentation of these non-GAAP measures, and refer to these financial tables for the reconciliations to the most directly comparable GAAP measures.



HEARTLAND FINANCIAL USA, INC.
SELECTED FINANCIAL DATA - SUBSIDIARY BANKS (Unaudited)
DOLLARS IN THOUSANDS
As of and For the Quarter Ended
12/31/20219/30/20216/30/20213/31/202112/31/2020
Total Assets
Arizona Bank & Trust$1,969,184 $1,808,943 $1,645,816 $1,614,740 $1,529,800 
Bank of Blue Valley1,441,980 1,460,751 1,419,003 1,425,434 1,376,080 
Citywide Banks2,696,695 2,685,554 2,611,842 2,632,199 2,628,963 
Dubuque Bank and Trust Company2,235,630 1,968,612 1,990,040 1,932,234 1,853,078 
First Bank & Trust2,878,173 2,855,671 2,882,969 2,991,053 3,171,961 
Illinois Bank & Trust1,686,038 1,680,558 1,671,240 1,584,561 1,525,503 
Minnesota Bank & Trust865,825 872,291 955,638 995,692 1,000,168 
New Mexico Bank & Trust2,623,597 2,586,951 2,494,257 2,356,918 2,032,637 
Premier Valley Bank1,224,396 1,198,540 1,126,807 1,062,607 1,076,615 
Rocky Mountain Bank713,930 718,956 646,821 620,800 616,157 
Wisconsin Bank & Trust1,224,689 1,209,954 1,252,096 1,264,009 1,267,488 
Total Deposits
Arizona Bank & Trust$1,768,793 $1,617,732 $1,450,248 $1,453,888 $1,357,158 
Bank of Blue Valley1,179,294 1,192,868 1,168,617 1,178,114 1,138,264 
Citywide Banks2,291,912 2,282,703 2,174,237 2,231,320 2,181,511 
Dubuque Bank and Trust Company1,750,071 1,705,753 1,471,564 1,565,782 1,456,908 
First Bank & Trust2,397,350 2,367,353 2,361,391 2,427,920 2,622,716 
Illinois Bank & Trust1,496,262 1,509,847 1,512,106 1,426,426 1,338,677 
Minnesota Bank & Trust719,489 734,292 762,549 813,693 789,555 
New Mexico Bank & Trust2,308,939 2,206,099 2,195,838 2,077,304 1,749,963 
Premier Valley Bank1,051,286 988,579 963,459 896,715 836,984 
Rocky Mountain Bank640,757 602,155 568,961 549,894 538,012 
Wisconsin Bank & Trust1,070,161 1,048,367 1,093,119 1,067,735 1,057,369 



HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
For the Quarter Ended
12/31/20219/30/20216/30/20213/31/202112/31/2020
Reconciliation of Annualized Return on Average Tangible Common Equity (non-GAAP)
Net income available to common stockholders (GAAP)$47,568 $53,911 $59,593 $50,801 $37,795 
Plus core deposit and customer relationship intangibles amortization, net of tax(1)
1,713 1,814 1,907 1,988 1,975 
Net income available to common stockholders excluding intangible amortization (non-GAAP)$49,281 $55,725 $61,500 $52,789 $39,770 
Average common equity (GAAP)$2,061,973 $2,072,593 $1,980,904 $1,963,674 $1,769,575 
Less average goodwill576,005 576,005 576,005 576,005 488,151 
Less average core deposit and customer relationship intangibles, net34,018 36,279 38,614 41,399 42,733 
Average tangible common equity (non-GAAP)$1,451,950 $1,460,309 $1,366,285 $1,346,270 $1,238,691 
Annualized return on average common equity (GAAP)9.15 %10.32 %12.07 %10.49 %8.50 %
Annualized return on average tangible common equity (non-GAAP)13.47 %15.14 %18.05 %15.90 %12.77 %
Reconciliation of Annualized Net Interest Margin, Fully Tax-Equivalent (non-GAAP)
Net Interest Income (GAAP)$137,194 $142,543 $141,218 $139,605 $132,575 
Plus tax-equivalent adjustment(1)
1,975 1,714 1,762 1,761 1,529 
Net interest income, fully tax-equivalent (non-GAAP)$139,169 $144,257 $142,980 $141,366 $134,104 
Average earning assets$17,681,917 $17,123,824 $16,819,978 $16,460,124 $15,042,079 
Annualized net interest margin (GAAP)3.08 %3.30 %3.37 %3.44 %3.51 %
Annualized net interest margin, fully tax-equivalent (non-GAAP)3.12 3.34 3.41 3.48 3.55 
Net purchase accounting discount amortization on loans included in annualized net interest margin0.05 0.08 0.09 0.12 0.10 
Reconciliation of Tangible Book Value Per Common Share (non-GAAP)
Common equity (GAAP)$2,071,473 $2,061,547 $2,049,081 $1,945,502 $1,968,526 
Less goodwill576,005 576,005 576,005 576,005 576,005 
Less core deposit and customer relationship intangibles, net32,988 35,157 37,452 39,867 42,383 
Tangible common equity (non-GAAP)$1,462,480 $1,450,385 $1,435,624 $1,329,630 $1,350,138 
Common shares outstanding, net of treasury stock42,275,264 42,250,092 42,245,452 42,173,675 42,093,862 
Common equity (book value) per share (GAAP)$49.00 $48.79 $48.50 $46.13 $46.77 
Tangible book value per common share (non-GAAP)$34.59 $34.33 $33.98 $31.53 $32.07 
Reconciliation of Tangible Common Equity Ratio (non-GAAP)
Tangible common equity (non-GAAP)$1,462,480 $1,450,385 $1,435,624 $1,329,630 $1,350,138 
Total assets (GAAP)$19,274,549 $18,996,225 $18,371,006 $18,244,427 $17,908,339 
Less goodwill576,005 576,005 576,005 576,005 576,005 
Less core deposit and customer relationship intangibles, net32,988 35,157 37,452 39,867 42,383 
Total tangible assets (non-GAAP)$18,665,556 $18,385,063 $17,757,549 $17,628,555 $17,289,951 
Tangible common equity ratio (non-GAAP)7.84 %7.89 %8.08 %7.54 %7.81 %
(1) Computed on a tax-equivalent basis using an effective tax rate of 21%.



HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
Reconciliation of Efficiency Ratio (non-GAAP)For the Quarter Ended
12/31/20219/30/20216/30/20213/31/202112/31/2020
Net interest income (GAAP)$137,194 $142,543 $141,218 $139,605 $132,575 
Tax-equivalent adjustment(1)
1,975 1,714 1,762 1,761 1,529 
Fully tax-equivalent net interest income 139,169 144,257 142,980 141,366 134,104 
Noninterest income32,730 32,724 33,164 30,317 32,621 
Securities gains, net(1,563)(1,535)(2,842)30 (2,829)
Unrealized (gain) loss on equity securities, net27 (112)(83)110 (36)
Valuation adjustment on servicing rights(502)(195)526 (917)102 
Adjusted revenue (non-GAAP)$169,861 $175,139 $173,745 $170,906 $163,962 
Total noninterest expenses (GAAP)$115,386 $110,627 $103,376 $102,423 $99,269 
Less:
Core deposit and customer relationship intangibles amortization2,169 2,295 2,415 2,516 2,501 
Partnership investment in tax credit projects2,549 2,374 1,345 35 1,899 
(Gain) loss on sales/valuation of assets, net 214 (3)183 194 2,621 
Acquisition, integration and restructuring costs1,989 204 210 2,928 2,186 
Adjusted noninterest expenses (non-GAAP)$108,465 $105,757 $99,223 $96,750 $90,062 
Efficiency ratio, fully tax-equivalent (non-GAAP)63.86 %60.38 %57.11 %56.61 %54.93 %
Acquisition, integration and restructuring costs
Salaries and employee benefits$— $— $44 $534 $232 
Occupancy— — 1 9 — 
Furniture and equipment— 7 41 607 423 
Professional fees1,989 145 63 670 1,422 
Advertising— 11 6 156 42 
(Gain) loss on sales/valuations of assets, net— 39 — — — 
Other noninterest expenses— 2 55 952 67 
Total acquisition, integration and restructuring costs$1,989 $204 $210 $2,928 $2,186 
After tax impact on diluted earnings per share(1)
$0.05 $— $— $0.05 $0.04 
(1) Computed on a tax-equivalent basis using an effective tax rate of 21%.



HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
For the Quarter Ended
December 31,		For the Year Ended
December 31,
2021202020212020
Reconciliation of Annualized Return on Average Tangible Common Equity (non-GAAP)
Net income available to common stockholders (GAAP)$47,568 $37,795 $211,873 $133,487 
Plus core deposit and customer relationship intangibles amortization, net of tax(1)
1,713 1,975 7,422 8,429 
Net income available to common stockholders excluding intangible amortization (non-GAAP)$49,281 $39,770 $219,295 $141,916 
Average common equity (GAAP)$2,061,973 $1,769,575 $2,020,200 $1,656,708 
Less average goodwill576,005 488,151 576,005 456,854 
Less average core deposit and customer relationship intangibles, net34,018 42,733 37,554 44,298 
Average tangible common equity (non-GAAP)$1,451,950 $1,238,691 $1,406,641 $1,155,556 
Annualized return on average common equity (GAAP)9.15 %8.50 %10.49 %8.06 %
Annualized return on average tangible common equity (non-GAAP)13.47 %12.77 %15.59 %12.28 %
Reconciliation of Annualized Net Interest Margin, Fully Tax-Equivalent (non-GAAP)
Net Interest Income (GAAP)$137,194 $132,575 $560,560 $491,729 
Plus tax-equivalent adjustment(1)
1,975 1,529 7,212 5,466 
Net interest income, fully tax-equivalent (non-GAAP)$139,169 $134,104 $567,772 $497,195 
Average earning assets$17,681,917 $15,042,079 $17,025,088 $13,481,613 
Annualized net interest margin (GAAP)3.08 %3.51 %3.29 %3.65 %
Annualized net interest margin, fully tax-equivalent (non-GAAP)3.12 3.55 3.33 3.69 
Net purchase accounting discount amortization on loans included in annualized net interest margin0.05 0.10 0.09 0.12 
(1) Computed on a tax-equivalent basis using an effective tax rate of 21%.



HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
For the Quarter Ended
December 31,		For the Year Ended
December 31,
Reconciliation of Efficiency Ratio (non-GAAP)2021202020212020
Net interest income (GAAP)$137,194 $132,575 $560,560 $491,729 
Tax-equivalent adjustment(1)
1,975 1,529 7,212 5,466 
Fully tax-equivalent net interest income 139,169 134,104 567,772 497,195 
Noninterest income 32,730 32,621 128,935 120,291 
Securities gains, net(1,563)(2,829)(5,910)(7,793)
Unrealized (gain) loss on equity securities, net27 (36)(58)(640)
Valuation adjustment on servicing rights (502)102 (1,088)1,778 
Adjusted income (non-GAAP)$169,861 $163,962 $689,651 $610,831 
Total noninterest expenses (GAAP)$115,386 $99,269 $431,812 $370,963 
Less:
Core deposit and customer relationship intangibles amortization2,169 2,501 9,395 10,670 
Partnership investment in tax credit projects2,549 1,899 6,303 3,801 
(Gain) loss on sales/valuations of assets, net214 2,621 588 5,101 
Acquisition, integration and restructuring costs1,989 2,186 5,331 5,381 
Adjusted noninterest expenses (non-GAAP)$108,465 $90,062 $410,195 $346,010 
Efficiency ratio, fully tax-equivalent (non-GAAP)63.86 %54.93 %59.48 %56.65 %
Acquisition, integration and restructuring costs
Salaries and employee benefits$— $232 $578 $398 
Occupancy— — 10 — 
Furniture and equipment— 423 655 958 
Professional fees1,989 1,422 2,867 3,399 
Advertising— 42 173 143 
(Gain)/loss on sales/valuations of assets, net— — 39 — 
Other noninterest expenses— 67 1,009 483 
Total acquisition, integration and restructuring costs$1,989 $2,186 $5,331 $5,381 
After tax impact on diluted earnings per share(1)
$0.05 $0.04 $0.13 $0.11 
(1) Computed on a tax-equivalent basis using an effective tax rate of 21%.




HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
As of and For the Quarter Ended
12/31/20219/30/20216/30/20213/31/202112/31/2020
PPP I loan balances$27,092 $74,255 $374,174 $739,562 $957,785 
Average PPP I loans balances53,321 174,930 597,703 841,262 1,064,863 
PPP I fee income$497 $3,886 $7,313 $7,464 $9,109 
PPP I interest income129 403 1,445 2,087 2,697 
Total PPP I interest income$626 $4,289 $8,758 $9,551 $11,806 
PPP II loan balances$172,791 $334,992 $455,001 $415,766 $— 
Average PPP II loan balances249,508 427,745 449,856 151,255 — 
PPP II fee income$6,838 $5,784 $1,263 $223 $— 
PPP II interest income 642 1,113 1,165 375 — 
Total PPP II interest income $7,480 $6,897 $2,428 $598 $— 
Selected ratios excluding total PPP loans and total PPP interest income
Annualized net interest margin (GAAP)2.95 %3.15 %3.31 %3.39 %3.44 %
Annualized net interest margin, fully tax-equivalent (non-GAAP)(1)
2.99 3.20 3.35 3.44 3.48 
Ratio of nonperforming loans to total loans0.72 0.88 0.93 1.03 0.97 
Ratio of nonperforming loans and performing trouble debt restructured loans to total loans0.73 0.90 0.95 1.06 1.00 
Ratio of nonperforming assets to total assets0.38 0.47 0.52 0.58 0.56 
Annualized ratio of net loan charge-offs (recoveries) to average loans0.03 (0.05)0.13 0.07 0.01 
Allowance for loan credit losses as a percent of loans1.13 1.24 1.31 1.46 1.45 
Allowance for lending related credit losses as a percent of loans1.29 1.39 1.47 1.63 1.62 
Loans delinquent 30-89 days as a percent of total loans0.08 0.12 0.18 0.18 0.25 
After tax impact of PPP interest income on diluted earnings per share(1)
$0.15 $0.21 $0.21 $0.19 $0.24 
As of and For the Year Ended
December 31, 2021December 31, 2020
Average PPP I loan balances $413,983 $779,183 
Average PPP II loan balances320,156 — 
PPP I and II fee income$33,268 $17,306 
PPP I and II interest income7,359 7,979 
Total PPP interest income$40,627 $25,285 
Selected ratios excluding total PPP loans and total PPP interest income
Annualized net interest margin (GAAP)3.19 %3.67 %
Annualized net interest margin, fully tax-equivalent (non-GAAP)(1)
3.24 3.72 
Annualized ratio of net loan charge-offs (recoveries) to average loans0.04 0.35 
After tax impact of PPP interest income on diluted earnings per share(1)
$0.76 $0.53 
(1) Computed on a tax-equivalent basis using an effective tax rate of 21%.