REGULATORY CAPITAL REQUIREMENTS AND RESTRICTIONS ON SUBSIDIARY DIVIDENDS

12 Months Ended

Dec. 31, 2023

Federal Home Loan Banks [Abstract]

REGULATORY CAPITAL REQUIREMENTS AND RESTRICTIONS ON SUBSIDIARY DIVIDENDS

REGULATORY CAPITAL REQUIREMENTS AND RESTRICTIONS ON SUBSIDIARY DIVIDENDS

HTLF Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that,

if undertaken, could have a direct material effect on HTLF Bank's financial statements. The regulations prescribe specific capital adequacy guidelines that involve quantitative measures of a bank’s assets, liabilities and certain off balance sheet items as calculated under regulatory accounting practices. Capital classification is also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require HTLF Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined).

The requirements to be categorized as well-capitalized under the Tier 1 leverage capital ratio is 4% for all banks. The minimum requirement to be well-capitalized for the Tier 1 risk-based capital ratio is 8%. The total risk-based capital ratio minimum requirement to be well-capitalized remained is 10%. Management believes, as of December 31, 2023 and 2022, that HTLF Bank met all capital adequacy requirements to which it was subject.

As of December 31, 2023 and 2022, the FDIC categorized HTLF Bank, and all HTLF member banks prior to charter consolidation, as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Banks must maintain minimum total risk-based, Tier 1 risk-based, Tier 1 common equity and Tier 1 leverage ratios as set forth in the following table. There are no conditions or events since December 31, 2023, that management believes have changed each institution’s category.

HTLF Bank's, and all HTLF member banks prior to charter consolidation, actual capital amounts and ratios are also presented in the tables below, in thousands:

	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
As of December 31, 2023
Total Capital (to Risk-Weighted Assets)
Consolidated	$	2,237,035	14.53	%	$	1,231,972	8.00	%	$	1,539,965	10.00	%
HTLF Bank	1,969,006		12.85		1,225,669		8.00		1,532,087		10.00
Tier 1 Capital (to Risk-Weighted Assets)
Consolidated	$	1,800,542	11.69	%	$	923,979	6.00	%	$	923,979	6.00	%
HTLF Bank	1,829,972		11.94		919,252		6.00		1,225,669		8.00
Common Equity Tier 1 (to Risk-Weighted Assets)
Consolidated	$	1,689,837	10.97	%	$	692,984	4.50	%	N/A
HTLF Bank	1,829,972		11.94		689,439		4.50		$	995,856	6.50	%
Tier 1 Capital (to Average Assets)
Consolidated	$	1,800,542	9.44	%	$	763,309	4.00	%	N/A
HTLF Bank	1,829,972		9.26		790,709		4.00		$	988,386	5.00	%

	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
As of December 31, 2022
Total Capital (to Risk-Weighted Assets)
Consolidated	$	2,204,829	14.76	%	$	1,194,970	8.00	%	N/A
HTLF Bank	824,069		11.72		562,497		8.00		$	703,122	10.00	%
Dubuque Bank and Trust Company	184,096		13.01		113,197		8.00		141,497		10.00
Wisconsin Bank & Trust	128,490		13.12		78,336		8.00		97,920		10.00
New Mexico Bank & Trust	238,190		13.23		144,059		8.00		180,073		10.00
Rocky Mountain Bank	69,792		12.84		43,489		8.00		54,361		10.00
Bank of Blue Valley	162,131		16.07		80,689		8.00		100,861		10.00
First Bank & Trust	288,518		13.51		170,835		8.00		213,543		10.00
Tier 1 Capital (to Risk-Weighted Assets)
Consolidated	$	1,763,990	11.81	%	$	896,228	6.00	%	N/A
HTLF Bank	762,103		10.84		421,873		6.00		$	562,497	8.00	%
Dubuque Bank and Trust Company	174,684		12.35		84,898		6.00		113,197		8.00
Wisconsin Bank & Trust	119,231		12.18		58,752		6.00		78,336		8.00
New Mexico Bank & Trust	223,602		12.42		108,044		6.00		144,059		8.00
Rocky Mountain Bank	63,814		11.74		32,617		6.00		43,489		8.00
Bank of Blue Valley	155,002		15.37		60,516		6.00		80,689		8.00
First Bank & Trust	267,169		12.51		128,126		6.00		170,835		8.00
Common Equity Tier 1 (to Risk Weighted Assets)
Consolidated	$	1,653,285	11.07	%	$	672,171	4.50	%	N/A
HTLF Bank	762,103		10.84		316,405		4.50		$	457,029	6.50	%
Dubuque Bank and Trust Company	174,684		12.35		63,674		4.50		91,973		6.50
Wisconsin Bank & Trust	119,231		12.18		44,064		4.50		63,648		6.50
New Mexico Bank & Trust	223,602		12.42		81,033		4.50		117,048		6.50
Rocky Mountain Bank	63,814		11.74		24,463		4.50		35,335		6.50
Bank of Blue Valley	155,002		15.37		45,387		4.50		65,560		6.50
First Bank & Trust	267,169		12.51		96,094		4.50		138,803		6.50
Tier 1 Capital (to Average Assets)
Consolidated	$	1,763,990	9.13	%	$	772,911	4.00	%	N/A
HTLF Bank	762,103		8.64		352,914		4.00		$	441,143	5.00	%
Dubuque Bank and Trust Company	174,684		8.08		86,473		4.00		108,091		5.00
Wisconsin Bank & Trust	119,231		9.22		51,753		4.00		64,691		5.00
New Mexico Bank & Trust	223,602		8.12		110,214		4.00		137,767		5.00
Rocky Mountain Bank	63,814		8.49		30,064		4.00		37,580		5.00
Bank of Blue Valley	155,002		10.75		57,676		4.00		72,095		5.00
First Bank & Trust	267,169		9.29		115,026		4.00		143,782		5.00

The ability of HTLF to pay dividends to its stockholders is dependent upon dividends paid by its subsidiaries. HTLF Bank is subject to certain statutory and regulatory restrictions on the amount it may pay in dividends. To maintain acceptable capital ratios for the HTLF Bank, certain portions of their retained earnings are not available for the payment of dividends. Retained earnings that could be available for the payment of dividends to HTLF totaled approximately $743.3 million as of December 31, 2023, under the most restrictive minimum capital requirements. Retained earnings that could be available for the payment of dividends to HTLF totaled approximately $436.9 million as of December 31, 2023, under the capital requirements to remain well capitalized.