PARENT COMPANY ONLY FINANCIAL INFORMATION (Tables)

12 Months Ended

Dec. 31, 2023

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


BALANCE SHEETS (Dollars in thousands)
	December 31,
	2023		2022
Assets:
Cash and interest-bearing deposits	$	288,203	$	307,026



Investment in subsidiaries	1,971,014		1,747,188
Other assets	72,501		94,953

Total assets	$	2,331,718	$	2,149,167
Liabilities and Stockholders’ equity:

Borrowings	$	372,316	$	370,930
Accrued expenses and other liabilities	26,285		43,182
Total liabilities	398,601		414,112
Stockholders’ equity:
Preferred stock	110,705		110,705
Common stock	42,688		42,467
Capital surplus	1,090,740		1,080,964
Retained earnings	1,141,501		1,120,925
Accumulated other comprehensive loss	(452,517)		(620,006)

Total stockholders’ equity	1,933,117		1,735,055
Total liabilities and stockholders’ equity	$	2,331,718	$	2,149,167


INCOME STATEMENTS (Dollars in thousands)
	For the Years Ended December 31,
	2023		2022		2021
Operating revenues:
Dividends from subsidiaries	$	50,000	$	142,500	$	163,500


Other	1,486		1,200		1,885
Total operating revenues	51,486		143,700		165,385
Operating expenses:
Interest	22,637		16,886		12,851
Salaries and employee benefits	4,610		7,225		7,509
Professional fees	8,807		11,594		5,161
Other operating expenses	9,287		10,474		10,984
Total operating expenses	45,341		46,179		36,505
Equity in undistributed earnings	57,799		98,983		75,368
Income before income tax benefit	63,944		196,504		204,248
Income tax benefit	15,976		15,676		15,675
Net income	79,920		212,180		219,923
Preferred dividends	(8,050)		(8,050)		(8,050)

Net income available to common stockholders	$	71,870	$	204,130	$	211,873


STATEMENTS OF CASH FLOWS (Dollars in thousands)
	For the Years Ended December 31,
	2023			2022			2021
Cash flows from operating activities:
Net income	$	79,920		$	212,180		$	219,923
Adjustments to reconcile net income to net cash provided by operating activities:
Undistributed earnings of subsidiaries	(57,799)			(98,983)			(75,368)


Increase (decrease) in accrued expenses and other liabilities	(17,090)			(8,946)			8,723
Increase (decrease) in other assets	23,335			(13,933)			(13,069)

Excess tax (expense) benefit from stock-based compensation	(123)			131			312
Other, net	11,537			9,958			12,632
Net cash provided by operating activities	39,780			100,407			153,153
Cash flows from investing activities:
Capital contributions to subsidiaries	—			—			(34,000)







Net cash used by investing activities	—			—			(34,000)
Cash flows from financing activities:

Proceeds from borrowings	—			—			147,614

Repayments of borrowings	—			—			(44,417)



Cash dividends paid	(59,151)			(54,249)			(48,559)


Proceeds from issuance of common stock	548			1,038			1,311
Net cash provided by (used in) by financing activities	(58,603)		—	(53,211)		—	55,949
Net increase (decrease) in cash and cash equivalents	(18,823)			47,196			175,102
Cash and cash equivalents at beginning of year	307,026			259,830			84,728
Cash and cash equivalents at end of year	$	288,203		$	307,026		$	259,830
Supplemental disclosure:

Dividends declared, not paid	2,013			2,013			2,013

Net assets from dissolved subsidiary	883			—			—