First Quarter Highlights • Quarterly net income available to common stockholders of $49.7 million or $1.16 per common share • Adjusted earnings available to common stockholders of $52.4 million or $1.22 adjusted diluted earnings per common share, which excludes $1.4 million of acquisition, integration and restructuring costs and $2.0 million of FDIC special assessment expense • Common equity ratio increased to 9.76%; Tangible common equity ratio (non-GAAP) improved 35 basis points to 6.88% • Net interest margin, full tax-equivalent (non-GAAP) increased to 3.57% for the quarter ended March 31, 2024 from 3.52% for the quarter ended December 31, 2024 • Annualized loan yield increased to 6.63% for the quarter ended March 31, 2024 from 6.49% for the quarter ended December 31, 2024 • Annualized cost of deposits stable at 2.11% • Customer deposit growth of $9.2 million, excluding the impact of Rocky Mountain Bank deposits, while wholesale and institutional deposits decreased $312.4 million • Nonperforming assets decreased $12.5 million or 11% to 0.51% of total assets   For the Quarter Ended   3/31/2024   12/31/2023   3/31/2023 Earnings Summary:           Net income/(loss) available to common stockholders (in millions) $ 49.7     $ (72.4 )   $ 50.8   Diluted earnings/(loss) per common share   1.16       (1.69 )     1.19   Return on average assets   1.08 %   (1.42 )%     1.06 % Return on average common equity   10.90       (16.61 )     12.43   Return on average tangible common equity (non-GAAP)(1)   16.49       (24.89 )     20.03   Net interest margin   3.52       3.47       3.36   Net interest margin, fully tax-equivalent (non-GAAP)(1)   3.57       3.52       3.40   Efficiency ratio   62.46       293.86       60.94   Adjusted efficiency ratio, fully-tax equivalent (non-GAAP)(1)   58.77       59.31       57.16               Adjusted Earnings Summary (1):           Adjusted earnings available to common stockholders (in millions) $ 52.4     $ 45.6     $ 53.7   Adjusted diluted earnings per common share   1.22       1.06       1.26   Adjusted annualized return on average assets   1.13 %     0.96 %     1.12 % Adjusted annualized return on average common equity   11.50       10.46       13.16   Adjusted annualized return on average tangible common equity   17.38       16.38       21.17   (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 delivered another solid quarter. We grew customer deposits while continuing to pay down high cost wholesale deposits and our credit quality remains stable. The announced sale of Rocky Mountain Bank in Montana aligns with HTLF 3.0, our connected set of initiatives that will drive efficiency, enhance EPS growth, deliver higher return on assets and more efficient use of capital. We intend to strategically reinvest sales proceeds in talent, technology and our other markets where we have the greatest growth potential." Bruce K. Lee, President and Chief Executive Officer, HTLF DENVER, April 29, 2024 (GLOBE NEWSWIRE) -- Heartland Financial USA, Inc. (NASDAQ:HTLF) today reported the following results for the quarter ended March 31, 2024, compared to the quarter ended March 31, 2023: Net income available to common stockholders of $49.7 million compared to $50.8 million, a decrease of $1.1 million or 2%. Earnings per diluted common share of $1.16 compared to $1.19, a decrease of $0.03 or 3%. Adjusted earnings available to common stockholders of $52.4 million or $1.22 per diluted common share compared to $53.7 million or $1.26 per diluted common share. Net interest income of $154.2 million compared to $152.2 million, an increase of $2.0 million or 1%. Return on average assets was 1.08% compared to 1.06%. Return on average common equity was 10.90% compared to 12.43%. Return on average tangible common equity (non-GAAP) was 16.49% compared to 20.03%. HTLF 3.0 Highlights HTLF's new strategic plan, HTLF 3.0, was announced and initiated in the fourth quarter of 2023. HTLF 3.0's initiatives include: Investing in growth through banker expansion and talent acquisition in the Central Valley of California, Denver, Kansas City, Milwaukee, Minneapolis, and Phoenix. Expanding Treasury Management products and capabilities. Creation of consumer and small business digital platforms. Footprint and facilities optimization, with a focus on efficient return on capital. In the quarter we took the following actions as part of HTLF 3.0: Reduced wholesale and institutional deposits by $312.4 million. Announced sale of Rocky Mountain Bank division. Completed key hires and promotions in wealth management and commercial and middle market banking. Rocky Mountain Bank Sale HTLF Bank has signed definitive agreements to sell all nine Rocky Mountain Bank branches in Montana along with all associated deposits and certain related assets to two purchasers. Per the terms of the agreements, six branches will be sold to Glacier Bank and three branches will be sold to Stockman Bank of Montana. Loans of $352.7 million, deposits of $596.3 million and fixed assets of $13.2 million have been moved to available for sale categories as of March 31, 2024. The transactions are expected to close early in the third quarter of this year with an estimated pre-tax premium of $30-$35 million based upon current deposit balances. Net Interest Income and Net Interest Margin Net interest margin, expressed as a percentage of average earning assets, was 3.52% (3.57% on a fully tax-equivalent basis, non-GAAP) for the first quarter of 2024 compared to 3.47% (3.52% on a fully tax-equivalent basis, non-GAAP) for the fourth quarter of 2023, and 3.36% (3.40% on a fully tax-equivalent basis, non-GAAP) for the first quarter of 2023. Total interest income and average earning asset changes for the first quarter of 2024 compared to the first quarter of 2023 were: Total interest income was $251.7 million compared to $217.0 million, an increase of $34.7 million or 16% and primarily attributable to an increase in yields on average earning assets. Total interest income on a tax-equivalent basis (non-GAAP) was $253.7 million, an increase of $34.5 million or 16% from $219.2 million. Average earning assets decreased $795.6 million or 4% to $17.60 billion compared to $18.39 billion. The average rate on earning assets increased 97 basis points to 5.80% from 4.83%, primarily due to recent interest rate increases. Total interest expense and average interest bearing liability changes for the first quarter of 2024 compared to the first quarter of 2023 were: Total interest expense was $97.5 million, an increase of $32.7 million from $64.8 million, due to increases in the average interest rate paid and the average balance of interest bearing liabilities. The average interest rate paid on interest bearing liabilities increased 102 basis points to 3.11% from 2.09%. Average interest bearing deposits decreased $395.8 million or 3% to $11.59 billion from $11.99 billion. The average interest rate paid on interest bearing deposits increased 100 basis points to 2.92% from 1.92%. Average borrowings increased $421.3 million or 71% to $1.02 billion from $594.7 million, and the average interest rate paid on borrowings was 5.29% compared to 5.37%. Net interest income changes for the first quarter of 2024 compared to the first quarter of 2023 were: Net interest income totaled $154.2 million compared to $152.2 million, an increase of $2.0 million or 1%. Net interest income on a tax-equivalent basis (non-GAAP) totaled $156.2 million compared to $154.4 million, an increase of $1.8 million or 1%. Noninterest Income and Noninterest Expense Total noninterest income was $27.7 million during the first quarter of 2024 compared to $30.0 million during the first quarter of 2023, a decrease of $2.3 million or 8%. Significant changes within the noninterest income category for the first quarter of 2024 compared to the first quarter of 2023 were: Trust fees decreased $614,000 or 11% to $5.0 million from $5.7 million, primarily attributable to reduced retirement plan services income following the sale of the recordkeeping and administrative functions of HTLF Retirement Plan Services in May of 2023. Capital market fees decreased $1.6 million or 64% to $891,000 from $2.4 million due to lower capital markets activity. Net security gains totaled $58,000 compared to net losses of $1.1 million. Net gains on sales of loans held for sale decreased $1.7 million or 94% to $104,000 from $1.8 million, primarily attributable to a decrease in residential mortgage loans sold to the secondary market as HTLF exited mortgage loan originations through PrimeWest. Other noninterest income increased $884,000 or 60% to $2.3 million compared to $1.5 million. HTLF recorded $715,000 of income on assets associated with its deferred compensation plan which was largely offset with additional salaries and benefits expenses. Total noninterest expense was $113.6 million during the first quarter of 2024 compared to $111.0 million during the first quarter of 2023, which was an increase of $2.6 million or 2%. Significant changes within the noninterest expense category for the first quarter of 2024 compared to the first quarter of 2023 were: Salaries and employee benefits totaled $64.0 million compared to $62.1 million, an increase of $1.8 million or 3%. The increase was attributable to higher benefit costs including incentive compensation and retirement plans partially offset by a reduction of full-time equivalent employees. Full-time equivalent employees totaled 1,888 compared to 1,991, a decrease of 103 or 5%. Other professional fees totaled $15.5 million compared to $12.8 million, an increase of $2.7 million or 21% which was primarily driven by increases in consulting and legal expenses. FDIC insurance assessments totaled $5.0 million compared to $3.3 million, an increase of $1.7 million due to a special assessment expense of $2.0 million. This special assessment is in addition to the $8.1 million HTLF recorded in the fourth quarter of 2023 based upon additional FDIC expected losses. Other noninterest expenses totaled $14.1 million compared to $15.4 million, a decrease of $1.3 million or 9% in conjunction with HTLF's 3.0 efficiency efforts. The effective tax rate was 23.17% for the first quarter of 2024 compared to 22.50% for first quarter of 2023. The following items impacted the first quarter 2024 and 2023 tax calculations: Various tax credits of $935,000 compared to $969,000. Tax expense of $1.3 million compared to $929,000 resulting from the disallowed interest expense related to tax-exempt loans and securities, aligning with increases in total interest expense. Tax-exempt interest income as a percentage of pre-tax income of 11.08% compared to 12.20%. Total Assets, Total Loans and Total Deposits Total assets were $19.13 billion at March 31, 2024, a decrease of $278.9 million or 1% from $19.41 billion at year-end 2023. Securities represented 28% and 29% of total assets at March 31, 2024, and December 31, 2023, respectively. Total loans held to maturity were $11.64 billion at March 31, 2024, compared to $12.07 billion at December 31, 2023, which was a decrease of $424.0 million or 4%. Excluding the impact of the transfer of $352.7 million of loans to held for sale related to the planned sale of Rocky Mountain Bank, loans held to maturity decreased $71.3 million or 1%. Significant changes by loan category at March 31, 2024 compared to December 31, 2023 included: Commercial and business lending, which includes commercial and industrial, PPP and owner occupied commercial real estate loans, decreased $200.7 million or 3% to $6.09 billion compared to $6.29 billion. Excluding the decrease related to Rocky Mountain Bank, commercial and business lending decreased $41.0 million or 1%. Commercial real estate lending, which includes non-owner occupied commercial real estate and construction loans, decreased $28.8 million or 1% to $3.54 billion compared to $3.57 billion. Excluding the decrease related to Rocky Mountain Bank, commercial real estate lending increased $35.7 million or 1%. Agricultural and agricultural real estate loans decreased $109.3 million or 12% to $809.9 million compared to $919.2 million. Excluding the decrease related to Rocky Mountain Bank, agricultural and agricultural real estate loans decreased $46.5 million or 5%. Residential mortgage loans decreased $41.8 million or 5% to $756.0 million compared to $797.8 million. Excluding the decrease related to Rocky Mountain Bank, residential mortgage loans decreased $9.9 million or 1%. Total deposits were $15.30 billion as of March 31, 2024, compared to $16.20 billion at December 31, 2023, which was a decrease of $899.5 million or 6%. Excluding the impact of the transfer of $596.3 million of deposits to held for sale related to the planned sale of Rocky Mountain Bank, deposits decreased $303.2 million or 2%. Total customer deposits were $14.27 billion as of March 31, 2024 compared to $14.86 billion at December 31, 2023, which was a decrease of $587.1 million or 4%. Excluding the impact of the transfer of $596.3 million of deposits to held for sale related to the planned sale of Rocky Mountain Bank, customer deposits increased $9.2 million. Significant customer deposit changes by category at March 31, 2024, compared to December 31, 2023, included: Customer demand deposits decreased $235.9 million or 5% to $4.26 billion compared to $4.50 billion. Excluding the decrease related to Rocky Mountain Bank, customer demand deposits decreased $91.9 million or 2%. Customer savings deposits decreased $141.3 million or 2% to $8.27 billion compared to $8.41 billion. Excluding the decrease related to Rocky Mountain Bank, customer savings deposits increased $189.0 million or 2%. Customer time deposits decreased $209.9 million or 11% to $1.73 billion compared to $1.94 billion. Excluding the decrease related to Rocky Mountain Bank, customer time deposits decreased $87.9 million or 5%. Total wholesale and institutional deposits were $1.03 billion as of March 31, 2024, which was a decrease of $312.4 million or 23% from $1.35 billion at December 31, 2023. Significant wholesale and institutional deposit changes by category at March 31, 2024 compared to December 31, 2023 included: Wholesale and institutional savings deposits increased $4.9 million or 1% to $399.3 million compared to $394.4 million. Wholesale time deposits decreased $317.3 million or 33% to $633.6 million compared to $950.9 million. Provision and Allowance Provision and Allowance for Credit Losses for Loans Provision for credit losses for loans for the first quarter of 2024 was $3.7 million, an increase of $1.5 million from $2.2 million recorded in the first quarter of 2023. The allowance for credit losses for loans totaled $123.9 million at March 31, 2024 and $122.6 million at December 31, 2023. The following items impacted the allowance for credit losses for loans at March 31, 2024: Provision expense for the three months ended March 31, 2024, totaled $3.7 million. The provision expense reflected a benefit of $2.0 million for the impact of the Rocky Mountain Bank loans transferred to the available for sale category. Net charge-offs of $2.3 million were recorded for the first three months of 2024. Provision and Allowance for Credit Losses for Unfunded Commitments The allowance for unfunded commitments decreased $2.7 million or 16% to $13.8 million at March 31, 2024, from $16.5 million at December 31, 2023, largely due to a reduction of $105.7 million in unfunded commitments for construction loans, which carry the highest loss rate. Total unfunded commitments decreased $88.1 million or 2% to $4.54 billion at March 31, 2024 compared to $4.63 billion at December 31, 2023. Total Provision and Allowance for Lending Related Credit LossesThe total provision expense for lending related credit losses was $986,000 for the first quarter of 2024 compared to $3.1 million for the first quarter of 2023. The total allowance for lending related credit losses was $137.7 million or 1.18% of total loans at March 31, 2024, compared to $139.0 million or 1.15% of total loans as of December 31, 2023. Nonperforming Assets Nonperforming assets decreased $12.5 million or 11% to $98.0 million or 0.51% of total assets at March 31, 2024, compared to $110.5 million or 0.57% of total assets at December 31, 2023. Nonperforming loans were $95.4 million or 0.82% of total loans at March 31, 2024, compared to $97.9 million or 0.81% of total loans at December 31, 2023. At March 31, 2024, loans delinquent 30-89 days were 0.31% of total loans compared to 0.09% of total loans at December 31, 2023. The increase in the 30-89 day delinquencies was primarily associated with a single $19.9 million construction loan that is currently in process of being sold by owners. Other real estate owned, net, decreased $10.0 million or 79% to $2.6 million at March 31, 2024 from $12.5 million at December 31, 2023. HTLF added one property with a book value of $11.3 million to other real estate during the third quarter of 2023 which was sold in the first quarter of 2024. 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: Adjusted earnings available to common stockholders, adjusts net income for the loss from sale of securities, and other non-operating expenses as well as the tax effect of those transactions. Management believes this measure enhances the comparability net income available to common stockholders as it reflects adjustments commonly made by management, investors and analysts to evaluate the ongoing operations and enhance comparability with the results of prior periods. Adjusted annualized return on average assets, adjusts net income for the loss from sale of securities, and other non-operating expenses as well as the tax effect of those transactions. Management believes this measure enhances the comparability of annualized return on average assets as it reflects adjustments commonly made by management, investors and analysts to evaluate the ongoing operations and enhance comparability with the results of prior periods. 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. Adjusted 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. Net interest margin, fully tax equivalent, is net interest income adjusted for the tax-favored status of certain loans and securities divided by average earning assets. 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. Adjusted annualized return on average common equity, adjusts net income for the loss from sale of securities, and other non-operating expenses as well as the tax effect of those transactions. Management believes this measure enhances the comparability of annualized return on average assets as it reflects adjustments commonly made by management, investors and analysts to evaluate the ongoing operations and enhance comparability with the results of prior periods. 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. Adjusted annualized return on average tangible common equity, adjusts net income available to common stockholders for the loss from sale of securities, and other non-operating expenses as well as the tax effect of those transactions. Management believes this measure enhances the comparability of annualized return on average assets as it reflects adjustments commonly made by management, investors and analysts to evaluate the ongoing operations and enhance comparability with the results of prior periods. Annualized ratio of core expenses to average assets adjusts noninterest expenses to exclude specific items noted in the reconciliation. Management includes this measure as it is considered to be a critical metric to analyze and evaluate controllable expenses related to primary business operations. Change in Conference Call As a result of today's announcement that HTLF has entered into a merger agreement with UMB Financial Corporation ("UMB") and a wholly-owned subsidiary of UMB, HTLF has cancelled the previously announced HTLF conference call scheduled for 5:00 p.m. EDT on Wednesday, May 1, 2024, to discuss the Company's performance for the first quarter of 2024. About HTLF Heartland Financial USA, Inc., is a Denver, Colorado-based bank holding company operating under the brand name HTLF, with assets of $19.13 billion as of March 31, 2024. HTLF's banks serve 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, wealth management, investments and residential mortgage. 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, 2023, include, among others: Economic and Market Conditions Risks, including risks related to the deterioration of the U.S. economy in general and in the local economies in which HTLF conducts its operations and future civil unrest, natural disasters, pandemics and governmental measures addressing them, climate change and climate-related regulations, persistent inflation, higher interest rates, 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 due to 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 economic, political, and competitive forces impacting our business; 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 HTLF's business, financial condition and results of operations. Additionally, all statements in this release, including forward-looking statements speak only as of the date they are made. HTLF 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 HTLF's financial results, is included in HTLF's filings with the SEC. -FINANCIAL TABLES FOLLOW- CONTACT:   Kevin L. Thompson   Executive Vice President   Chief Financial Officer   (563) 589-1994     HEARTLAND FINANCIAL USA, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA   For the Three Months EndedMarch 31,     2024       2023   Interest Income       Interest and fees on loans $ 195,661     $ 153,843   Interest on securities:       Taxable   47,014       55,976   Nontaxable   6,041       6,028   Interest on federal funds sold   —       —   Interest on deposits with other banks and short-term investments   3,006       1,131   Total Interest Income   251,722       216,978   Interest Expense       Interest on deposits   84,134       56,898   Interest on borrowings   7,524       2,422   Interest on term debt   5,849       5,446   Total Interest Expense   97,507       64,766   Net Interest Income   154,215       152,212   Provision for credit losses   986       3,074   Net Interest Income After Provision for Credit Losses   153,229       149,138   Noninterest Income       Service charges and fees   17,063       17,136   Loan servicing income   131       714   Trust fees   5,043       5,657   Brokerage and insurance commissions   754       696   Capital markets fees   891       2,449   Securities gains (losses), net   58       (1,104 ) Unrealized gain/(loss) on equity securities, net   95       193   Net gains on sale of loans held for sale   104       1,831   Income on bank owned life insurance   1,177       964   Other noninterest income   2,347       1,463   Total Noninterest Income   27,663       29,999   Noninterest Expense       Salaries and employee benefits   63,955       62,149   Occupancy   7,263       7,209   Furniture and equipment   2,337       2,915   Professional fees   15,531       12,797   FDIC insurance assessments   4,969       3,279   Advertising   1,358       1,985   Core deposit intangibles amortization   1,492       1,788   Other real estate and loan collection expenses, net   512       155   (Gain) loss on sales/valuations of assets, net   214       1,115   Acquisition, integration and restructuring costs   1,375       1,673   Partnership investment in tax credit projects   494       538   Other noninterest expenses   14,095       15,440   Total Noninterest Expense   113,595       111,043   Income Before Income Taxes   67,297       68,094   Income taxes   15,590       15,318   Net Income/(Loss)   51,707       52,776   Preferred dividends   (2,013 )     (2,013 ) Net Income/(Loss) Available to Common Stockholders $ 49,694     $ 50,763   Earnings/(loss) per common share-diluted $ 1.16     $ 1.19   Weighted average shares outstanding-diluted   42,915,768       42,742,878   HEARTLAND FINANCIAL USA, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA   For the Quarter Ended   3/31/2024   12/31/2023   9/30/2023   6/30/2023   3/31/2023 Interest Income                   Interest and fees on loans $ 195,661     $ 192,861     $ 182,394     $ 168,899     $ 153,843   Interest on securities:                   Taxable   47,014       54,573       54,800       58,172       55,976   Nontaxable   6,041       6,278       6,584       6,378       6,028   Interest on federal funds sold   —       —       3       —       —   Interest on deposits with other banks and short-term investments   3,006       2,174       1,651       2,051       1,131   Total Interest Income   251,722       255,886       245,432       235,500       216,978   Interest Expense                   Interest on deposits   84,134       88,071       92,744       81,975       56,898   Interest on borrowings   7,524       5,874       1,167       848       2,422   Interest on term debt   5,849       5,804       5,765       5,545       5,446   Total Interest Expense   97,507       99,749       99,676       88,368       64,766   Net Interest Income   154,215       156,137       145,756       147,132       152,212   Provision for credit losses   986       11,738       1,516       5,379       3,074   Net Interest Income After Provision for Credit Losses   153,229       144,399       144,240       141,753       149,138   Noninterest Income                   Service charges and fees   17,063       18,708       18,553       19,627       17,136   Loan servicing income   131       158       278       411       714   Trust fees   5,043       4,905       4,734       5,419       5,657   Brokerage and insurance commissions   754       729       692       677       696   Capital markets fees   891       1,676       1,845       4,037       2,449   Securities gains (losses), net   58       (140,007 )     (114 )     (314 )     (1,104 ) Unrealized gain/(loss) on equity securities, net   95       75       13       (41 )     193   Net gains on sale of loans held for sale   104       94       905       1,050       1,831   Income on bank owned life insurance   1,177       729       858       1,220       964   Other noninterest income   2,347       1,132       619       407       1,463   Total Noninterest Income   27,663       (111,801 )     28,383       32,493       29,999   Noninterest Expense                   Salaries and employee benefits   63,955       64,766       62,262       62,099       62,149   Occupancy   7,263       6,509       6,438       6,691       7,209   Furniture and equipment   2,337       2,901       2,720       3,063       2,915   Professional fees   15,531       17,060       13,616       15,194       12,797   FDIC insurance assessments   4,969       10,313       3,313       3,035       3,279   Advertising   1,358       1,677       1,633       3,052       1,985   Core deposit intangibles amortization   1,492       1,611       1,625       1,715       1,788   Other real estate and loan collection expenses, net   512       505       481       348       155   (Gain) loss on sales/valuations of assets, net   214       2,072       108       (3,372 )     1,115   Acquisition, integration and restructuring costs   1,375       4,365       2,429       1,892       1,673   Partnership investment in tax credit projects   494       3,573       1,136       154       538   Other noninterest expenses   14,095       14,933       15,292       15,575       15,440   Total Noninterest Expense   113,595       130,285       111,053       109,446       111,043   Income Before Income Taxes   67,297       (97,687 )     61,570       64,800       68,094   Income taxes   15,590       (27,324 )     13,479       15,384       15,318   Net Income/(Loss)   51,707       (70,363 )     48,091       49,416       52,776   Preferred dividends   (2,013 )     (2,012 )     (2,013 )     (2,012 )     (2,013 ) Net Income/(Loss) Available to Common Stockholders $ 49,694     $ (72,375 )   $ 46,078     $ 47,404     $ 50,763   Earnings/(loss) per common share-diluted $ 1.16     $ (1.69 )   $ 1.08     $ 1.11     $ 1.19   Weighted average shares outstanding-diluted   42,915,768       42,838,405       42,812,563       42,757,603       42,742,878   HEARTLAND FINANCIAL USA, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA   As of   3/31/2024   12/31/2023   9/30/2023   6/30/2023   3/31/2023 Assets                   Cash and due from banks $ 208,176     $ 275,554     $ 248,756     $ 317,303     $ 274,354   Interest bearing deposits with other banks and short-term investments   236,190       47,459       99,239       82,884       87,757   Cash and cash equivalents   444,366       323,013       347,995       400,187       362,111   Time deposits in other financial institutions   1,240       1,240       1,490       1,490       1,740   Securities:                   Carried at fair value   4,418,222       4,646,891       5,482,687       5,798,041       6,096,657   Held to maturity, at cost   841,055       838,241       835,468       834,673       832,098   Other investments, at cost   68,524       91,277       90,001       72,291       72,364   Loans held for sale   352,744       5,071       6,262       14,353       10,425   Loans:                   Held to maturity   11,644,641       12,068,645       11,872,436       11,717,974       11,495,353   Allowance for credit losses   (123,934 )     (122,566 )     (110,208 )     (111,198 )     (112,707 ) Loans, net   11,520,707       11,946,079       11,762,228       11,606,776       11,382,646   Premises, furniture and equipment, net   176,582       181,070       187,436       190,420       191,267   Goodwill   576,005       576,005       576,005       576,005       576,005   Core deposit intangibles, net   16,923       18,415       20,026       21,651       23,366   Cash surrender value on life insurance   197,671       197,085       196,694       195,793       194,419   Other real estate, net   2,590       12,548       14,362       2,677       7,438   Other ...