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Section 1: 8-K (HTLF Q3 2018 EARNINGS RELEASE)

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 of 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)
October 29, 2018


Heartland Financial USA, Inc.
(Exact name of Registrant as specified in its charter)

Commission File Number:
001-15393

Delaware
 
42-1405748
(State or other jurisdiction of incorporation)
 
(I.R.S. Employer Identification Number)

1398 Central Avenue
Dubuque, Iowa 52001
(Address of principal executive offices)

(563) 589-2100
(Registrant's telephone number, including area code)

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o








Item 2.02 Results of Operation and Financial Condition

On October 29, 2018, Heartland Financial USA, Inc. issued a press release announcing its earnings for the quarter ended September 30, 2018. A copy of the press release is attached as Exhibit 99.1.

Item 9.01 Financial Statements, Pro Forma Financial Information and Exhibits

(a)
Financial Statements of Business Acquired.

None.

(b)
Pro Forma Financial Information.

None.

(c)
Exhibits.

99.1 Press Release dated October 29, 2018


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: October 29, 2018
 
HEARTLAND FINANCIAL USA, INC.
 
 
 
 
 
 
By:
/s/ Bryan R. McKeag
 
 
 
Executive Vice President
 
 
 
Chief Financial Officer





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Section 2: EX-99.1 (HTLF Q3 2018 EARNINGS RELEASE)

Exhibit


395526302_htlfforworkivaa10.jpg
 
395526302_newslogoa53.jpg

CONTACT:
FOR IMMEDIATE RELEASE
Bryan R. McKeag
October 29, 2018
Executive Vice President
 
Chief Financial Officer
 
(563) 589-1994
 
 

HEARTLAND FINANCIAL USA, INC. REPORTS THIRD QUARTER 2018 RESULTS

Highlights
§
Quarterly net income available to common stockholders of $33.7 million in comparison with $21.6 million for the third quarter of the prior year
§
Diluted earnings per common share of $0.97 in comparison with $0.72 for the third quarter of the prior year
§
Net interest margin of 4.32%, fully tax-equivalent (non-GAAP)(1) of 4.38%
§
Return on average common equity of 10.58% and return on average tangible common equity (non-GAAP)(2) of 16.30%
§
Tangible common equity ratio (non-GAAP)(3) of 7.70%
§
Efficiency ratio, fully tax-equivalent (non-GAAP)(4) of 62.40% in comparison with 64.54% for the third quarter of 2017
§
Completed the systems conversion of First Bank & Trust on August 17, 2018
 
Quarter Ended
September 30,
 
Nine Months Ended
September 30,
 
2018
 
2017
 
2018
 
2017
Net income (in millions)
$
33.7

 
$
21.6

 
$
84.9

 
$
61.6

Net income available to common stockholders (in millions)
33.7

 
21.6

 
84.8

 
61.6

Diluted earnings per common share
0.97

 
0.72

 
2.59

 
2.21

 
 
 
 
 
 
 
 
Return on average assets
1.18
%
 
0.89
%
 
1.07
%
 
0.94
%
Return on average common equity
10.58

 
8.99

 
9.95

 
9.88

Return on average tangible common equity (non-GAAP)(2)
16.30

 
12.41

 
14.71

 
12.90

Net interest margin
4.32

 
4.08

 
4.25

 
4.00

Net interest margin, fully tax-equivalent (non-GAAP)(1)
4.38

 
4.26

 
4.32

 
4.19

Efficiency ratio, fully-tax equivalent (non-GAAP)(4)
62.40

 
64.54

 
65.03

 
66.58


(1) Refer to the "Reconciliation of Annualized Net Interest Margin, Fully Tax-Equivalent (non-GAAP)" table included in this earnings release.
(2) Refer to the "Reconciliation of Return on Average Tangible Common Equity (non-GAAP)" table included in this earnings release.
(3) Refer to the "Reconciliation of Tangible Common Equity Ratio (non-GAAP)" table included in this earnings release.
(4) Refer to the "Reconciliation of Non-GAAP measure-Efficiency Ratio" table included in this earnings release.
"Heartland reported another excellent quarter with net income available to common stockholders of $33.7 million or $0.97 per diluted common share, which was driven by a strong net interest margin on a fully tax-equivalent basis of 4.38 percent and continued improvement in our efficiency ratio."
Lynn B. Fuller, executive operating chairman, Heartland Financial USA, Inc.







Dubuque, Iowa, Monday, October 29, 2018-Heartland Financial USA, Inc. (NASDAQ: HTLF) today reported net income available to common stockholders of $33.7 million, or $0.97 per diluted common share, for the quarter ended September 30, 2018, compared to $21.6 million, or $0.72 per diluted common share, for the third quarter of 2017. Return on average common equity was 10.58% and return on average assets was 1.18% for the third quarter of 2018, compared to 8.99% and 0.89%, respectively, for the same quarter in 2017.

Net income available to common stockholders for the nine months ended September 30, 2018, was $84.8 million or $2.59 per diluted common share, compared to $61.6 million or $2.21 per diluted common share for the nine months ended September 30, 2017. Return on average common equity was 9.95% and return on average assets was 1.07% for the first nine months of 2018, compared to 9.88% and 0.94% for the same period in 2017.

Commenting on Heartland’s third quarter results, Lynn B. Fuller, Heartland’s executive operating chairman, said, "Heartland reported another excellent quarter with net income available to common stockholders of $33.7 million or $0.97 per diluted common share, which was driven by a strong net interest margin on a fully tax-equivalent basis of 4.38 percent and continued improvement in our efficiency ratio."

On May 18, 2018, Heartland completed the acquisition of Lubbock, Texas based First Bank Lubbock Bancshares, Inc. ("FBLB"), parent company of First Bank & Trust, and PrimeWest Mortgage Corporation, which is a wholly-owned subsidiary of First Bank & Trust. Based on Heartland's closing common stock price of $55.05 per share on May 18, 2018, the aggregate consideration paid to FBLB common shareholders was $189.9 million, with approximately 3% of the consideration paid in cash and 97% paid by delivery of Heartland common stock. As a result of the transaction, First Bank & Trust became a wholly-owned subsidiary of Heartland and its 11th state-chartered bank. First Bank & Trust and PrimeWest Mortgage Corporation continue to operate under their present brands and management teams. As of the closing date, FBLB had, at fair value, total assets of $1.12 billion, total loans held to maturity of $681.1 million and total deposits of $893.8 million. Heartland also assumed, at fair value, $8.2 million of trust preferred debt. The systems conversion for this transaction occurred on August 17, 2018.

In the third quarter of 2018, Heartland closed three branch locations, consisting of one branch at Dubuque Bank and Trust Company, Arizona Bank & Trust and Rocky Mountain Bank. Additionally, Wisconsin Bank & Trust announced the sale of two branches, which resulted in the classification of $31.4 million of loans and $50.3 million of deposits as held for sale at September 30, 2018 . The sales transaction is expected to close in the first quarter of 2019, pending regulatory approval. Excluding the pending branch sales, Heartland operated 122 branch locations across its footprint at September 30, 2018.
Bruce K. Lee, Heartland's president and chief executive officer, stated, "We continue to optimize our branch network and capitalize on the favorable market value of our branches. We are focusing our efforts in markets where we are well-positioned for growth."
Net Interest Margin Increases from Third Quarter of 2017

Net interest margin, expressed as a percentage of average earning assets, was 4.32% (4.38% on a fully tax-equivalent basis, non-GAAP) during the third quarter of 2018, compared to 4.08% (4.26% on a fully tax-equivalent basis, non-GAAP) during the third quarter of 2017 and 4.23% (4.30% on a fully tax-equivalent basis, non-GAAP) during the second quarter of 2018.

"We are very pleased with our tax-equivalent net interest margin of 4.38 percent for the third quarter of 2018, which increased 12 basis points from 4.26 percent for the third quarter of 2017. The improved margin was driven by an increase in average earning assets and a favorable deposit mix," Lee said.

Total interest income for the third quarter of 2018 was $124.9 million compared to $99.0 million recorded in the third quarter of 2017, an increase of $25.9 million or 26%. The taxable equivalent adjustment for income taxes saved on the interest earned on nontaxable securities and loans was $1.5 million for the third quarter of 2018 and $3.9 million for the third quarter of 2017. With these adjustments, total interest income on a tax-equivalent basis was $126.4 million for the third quarter of 2018, an increase of $23.5 million or 23%, compared to total interest income on a tax-equivalent basis of $102.9 million for the third quarter of 2017. Average earning assets increased $1.43 billion or 16% from the third quarter of 2017, which was primarily attributable to the acquisitions completed in the first half of 2018. The average rate on earning assets increased 26 basis points to 4.94% for the third quarter of 2018 compared to 4.68% for the same quarter in 2017. The increase in interest income on a tax-equivalent basis was primarily due to recent increases in market interest rates and the increase in average earning assets.






Total interest expense for the third quarter of 2018 was $14.2 million, an increase of $5.1 million or 56% from $9.1 million in the third quarter of 2017. Average interest bearing deposits increased $938.3 million or 18% to $6.13 billion for the quarter ended September 30, 2018, from $5.19 billion in the same quarter in 2017, which was primarily attributable to recent acquisitions. The average interest rate paid on Heartland's interest bearing deposits increased 26 basis points to 0.65% for the third quarter of 2018 compared to 0.39% for the same quarter in 2017. Average borrowings declined $91.1 million or 18% to $419.0 million during the third quarter of 2018 from $510.0 million during the same quarter in 2017. The average interest rate paid on Heartland's borrowings was 3.91% for the third quarter of 2018 compared to 3.16% in the third quarter of 2017. The increase of 75 basis points in the average interest rate paid on Heartland's interest bearing liabilities was primarily due to recent increases in market interest rates.

Net interest income was $110.7 million during the third quarter of 2018 compared to $89.8 million during the third quarter of 2017, an increase of $20.8 million or 23%. After the tax-equivalent adjustment discussed above, net interest income on a tax-equivalent basis totaled $112.2 million during the third quarter of 2018 compared to net interest income on a tax-equivalent basis of $93.8 million during the third quarter of 2017, an increase of $18.5 million or 20%.

Noninterest Income and Noninterest Expense Increase from Third Quarter of 2017

Total noninterest income was $29.8 million during the third quarter of 2018 compared to $25.0 million during the third quarter of 2017, an increase of $4.8 million or 19%. Service charges and fees increased $2.8 million or 27% to $12.9 million for the third quarter of 2018 compared to $10.1 million for the same quarter of 2017. Service charges related to credit card income increased $1.1 million or 54% to $3.1 million for the third quarter of 2018 from $2.0 million for the same quarter of 2017. The remainder of the increase in service charges was primarily attributable to Heartland's larger customer base as a result of recent acquisitions. Securities losses, net, totaled $145,000 for the third quarter of 2018 compared to net securities gains of $1.7 million for the third quarter of 2017. Net gains on sale of loans held for sale totaled $7.4 million during the third quarter of 2018 compared to $5.0 million during the same quarter in 2017, which was an increase of $2.4 million or 48%, primarily due to the acquisition of PrimeWest Mortgage Corporation in the second quarter of 2018.

For the third quarter of 2018, total noninterest expense was $92.5 million compared to $78.8 million during the third quarter of 2017, an increase of $13.8 million or 17%. Salaries and employee benefits increased $4.7 million or 10% to $49.9 million for the third quarter of 2018 compared to $45.2 million for the same quarter in 2017, which was primarily due to the increase in full time equivalent employees from recent acquisitions. Heartland had 2,211 full time equivalent employees at September 30, 2018, compared to 2,024 full time equivalent employees at September 30, 2017. Professional fees increased $3.2 million or 38% to $11.7 million for the third quarter of 2018 compared to $8.5 million for the same period in 2017, which was primarily attributable to the outsourcing of mortgage loan processing, underwriting and loan closing functions. Advertising expenses increased $1.4 million or 103% to $2.8 million for the third quarter of 2018 compared to $1.4 million for the third quarter of 2017, which related to increased marketing efforts to support Heartland's expanding footprint. Other noninterest expenses were $12.9 million for the third quarter of 2018 compared to $10.0 million for the third quarter of 2017, which was an increase of $2.9 million or 29%. Included in this increase was a write-down of $338,000 on a partnership investment that qualifies for solar energy tax credits. The remainder of the increase was primarily attributable to recent acquisitions.

Heartland's effective tax rate was 20.99% for the third quarter of 2018 compared to 28.74% for the third quarter of 2017. Federal low-income housing tax credits included in the determination of Heartland's income taxes totaled $307,000 during both the third quarter of 2018 and 2017. Included in Heartland's third quarter 2018 tax calculation was a solar energy tax credit totaling $223,000. Heartland's effective tax rate was also affected by the passage of the Tax Cuts and Jobs Act in December 2017, which reduced the federal income tax rate from a maximum of 35% to 21% beginning January 1, 2018. Due to the lower federal tax rate, the level of tax-exempt interest income as a percentage of pre-tax income declined to 13.62% during the third quarter of 2018 from 24.01% during the third quarter of 2017.

Loans and Deposits Increase Since December 31, 2017

Total assets were $11.34 billion at September 30, 2018, an increase of $1.52 billion or 16% from $9.81 billion at year-end 2017. Excluding $427.1 million of assets acquired at fair value in the Signature Bancshares, Inc. transaction and $1.12 billion of assets acquired at fair value in the FBLB transaction, total assets decreased $20.1 million or less than 1% since December 31, 2017. Securities represented 22% and 25% of total assets at September 30, 2018, and December 31, 2017, respectively.






Total loans held to maturity were $7.37 billion at September 30, 2018, compared to $6.39 billion at year-end 2017, an increase of $974.0 million or 15%. This change includes $324.5 million of total loans held to maturity acquired at fair value in the Signature Bancshares, Inc. transaction and $681.1 million of total loans held to maturity acquired at fair value in the FBLB transaction. During the third quarter of 2018, the sale of two branches at Wisconsin Bank & Trust was announced, which included $31.4 million of loans that were classified as held for sale at September 30, 2018. Exclusive of these transactions, total loans held to maturity decreased $140,000 or less than 1% since year-end 2017.

Total deposits were $9.51 billion as of September 30, 2018, compared to $8.15 billion at year-end 2017, an increase of $1.37 billion or 17%. This increase included $357.3 million of deposits, at fair value, acquired in the Signature Bancshares, Inc. transaction and $893.8 million of deposits, at fair value, acquired in the FBLB transaction. The deposits classified as held for sale in conjunction with the branch sale at Wisconsin Bank & Trust totaled $50.3 million at September 30, 2018. Exclusive of these transactions, total deposits increased $164.4 million or 2% since December 31, 2017.

Demand deposits increased $444.7 million or 15% to $3.43 billion at September 30, 2018 compared to $2.98 billion at December 31, 2017. Excluding $299.0 million of demand deposits attributable to the Signature Bancshares, Inc. and FBLB transactions, demand deposits increased $145.7 million or 5% since year-end 2017. For the third quarter of 2018, demand deposits increased $28.2 million or 1% to $3.43 billion from $3.40 billion at June 30, 2018.

Savings deposits increased $718.1 million or 17% to $4.96 billion at September 30, 2018, from $4.24 billion at December 31, 2017. Excluding savings deposits of $619.0 million acquired in the Signature Bancshares, Inc. and FBLB transactions, savings deposits increased $99.1 million or 2% since year-end 2017. Savings deposits increased $93.7 million or 2% during the third quarter to $4.96 billion at September 30, 2018 from $4.86 billion at June 30, 2018.

Time deposits increased $202.5 million or 22% to $1.13 billion at September 30, 2018 from $923.5 million at December 31, 2017. Excluding time deposits acquired in 2018 of $333.1 million, time deposits decreased $130.6 million or 14% since year-end and $98.9 million or 8% since June 30, 2018.

"Organic non-time deposit growth continued to be impressive with a year-to-date increase of $244.7 million or 5 percent annualized. At September 30, 2018, non-time deposits represented 88 percent of total deposits," Lee stated.

Nonperforming Assets Increase Since December 31, 2017

Nonperforming assets were $85.6 million or 0.76% of total assets at September 30, 2018, compared to $74.6 million or 0.76% of total assets at December 31, 2017. Excluding $10.4 million of nonperforming assets acquired in the Signature Bancshares, Inc. and FBLB transactions, nonperforming assets increased $586,000 or 1% since year-end 2017. Nonperforming loans were $73.2 million or 0.99% of total loans at September 30, 2018, compared to $63.4 million or 0.99% of total loans at December 31, 2017. At September 30, 2018, loans delinquent 30-89 days were 0.62% of total loans compared to 0.27% of total loans at December 31, 2017. The increase was primarily attributable to credits from acquired portfolios that were past due at September 30, 2018.

The allowance for loan losses at September 30, 2018, was 0.83% of loans and 83.62% of nonperforming loans, compared to 0.87% of loans and 87.82% of nonperforming loans at December 31, 2017. The provision for loan losses decreased $467,000 to $5.2 million for the third quarter of 2018 compared to $5.7 million for the same quarter in 2017.


Conference Call Details
Heartland will host a conference call for investors at 5:00 p.m. EDT today. To participate, dial 877-407-0782 at least five minutes before start time. To listen to the live webcast, log on to www.htlf.com at least 15 minutes before start time. A replay will be available until October 28, 2019, by logging on to www.htlf.com.

About Heartland Financial USA, Inc.
Heartland Financial USA, Inc. is a diversified financial services company with assets of $11.3 billion. The company provides banking, mortgage, private client, investment, insurance and consumer finance services to individuals and businesses. Heartland currently has 122 banking locations serving 91 communities in Iowa, Illinois, Wisconsin, New Mexico, Arizona, Montana, Colorado, Minnesota, Kansas, Missouri, Texas and California. Additional information about Heartland Financial USA, Inc. is available at www.htlf.com.






Safe Harbor Statement
This release, and future oral and written statements of Heartland and its management, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Heartland's financial condition, results of operations, plans, objectives, future performance and business. Although these forward-looking statements are based upon the beliefs, expectations and assumptions of Heartland's management, there are a number of factors, 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 are detailed in the risk factors in Heartland's Annual Report on Form 10-K filed with the Securities and Exchange Commission, contained, among others: (i) the strength of the local and national economy; (ii) the economic impact of past and any future terrorist threats and attacks and any acts of war; (iii) changes in state and federal laws, regulations and governmental policies as they impact the company's general business; (iv) changes in interest rates and prepayment rates of the company's assets; (v) increased competition in the financial services sector and the inability to attract new customers; (vi) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (vii) the potential impact of acquisitions and Heartland's ability to successfully integrate acquired banks; (viii) the loss of key executives or employees; (ix) changes in consumer spending; (x) unexpected outcomes of existing or new litigation involving the company; and (xi) changes in accounting policies and practices. All statements in this release, including forward-looking statements, speak only as of the date they are made, and Heartland undertakes no obligation to update any statement in light of new information or future events.


-FINANCIAL TABLES FOLLOW
-###






HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
 
For the Quarter Ended
September 30,
 
For the Nine Months Ended
September 30,
 
2018
 
2017
 
2018
 
2017
Interest Income
 
 
 
 
 
 
 
Interest and fees on loans
$
105,733

 
$
82,906

 
$
288,171

 
$
217,898

Interest on securities:
 
 
 
 
 
 
 
Taxable
14,433

 
10,394

 
38,280

 
27,246

Nontaxable
3,490

 
5,086

 
10,653

 
15,297

Interest on federal funds sold

 
34

 

 
37

Interest bearing deposits with the Federal Reserve Bank and other banks and other short-term investments
1,238

 
558

 
2,413

 
1,112

Total Interest Income
124,894

 
98,978

 
339,517

 
261,590

Interest Expense
 
 
 
 
 
 
 
Interest on deposits
10,092

 
5,073

 
23,841

 
12,966

Interest on short-term borrowings
464

 
271

 
1,279

 
498

Interest on other borrowings
3,660

 
3,790

 
10,726

 
10,674

Total Interest Expense
14,216

 
9,134

 
35,846

 
24,138

Net Interest Income
110,678

 
89,844

 
303,671

 
237,452

Provision for loan losses
5,238

 
5,705

 
14,332

 
10,235

Net Interest Income After Provision for Loan Losses
105,440

 
84,139

 
289,339

 
227,217

Noninterest Income
 
 
 
 
 
 
 
Service charges and fees
12,895

 
10,138

 
35,046

 
29,291

Loan servicing income
1,670

 
1,161

 
5,231

 
4,236

Trust fees
4,499

 
3,872

 
13,794

 
11,482

Brokerage and insurance commissions
1,111

 
950

 
2,895

 
2,962

Securities gains/(losses), net
(145
)
 
1,679

 
1,037

 
5,553

Unrealized gain/(loss) on equity securities, net
54

 

 
97

 

Net gains on sale of loans held for sale
7,410

 
4,997

 
18,261

 
17,961

Valuation adjustment on servicing rights
230

 
5

 
12

 
29

Income on bank owned life insurance
892

 
766

 
2,206

 
2,039

Other noninterest income
1,149

 
1,409

 
3,536

 
2,941

Total Noninterest Income
29,765

 
24,977

 
82,115

 
76,494

Noninterest Expense
 
 
 
 
 
 
 
Salaries and employee benefits
49,921

 
45,225

 
149,389

 
128,118

Occupancy
6,348

 
6,223

 
18,706

 
16,352

Furniture and equipment
3,470

 
2,826

 
9,403

 
7,913

Professional fees
11,681

 
8,450

 
30,088

 
24,342

FDIC insurance assessments
1,119

 
894

 
2,792

 
2,610

Advertising
2,754

 
1,358

 
6,839

 
5,141

Core deposit intangibles and customer relationship intangibles amortization
2,626

 
1,863

 
6,763

 
4,252

Other real estate and loan collection expenses
784

 
581

 
2,464

 
1,774

(Gain)/loss on sales/valuations of assets, net
912

 
1,342

 
2,243

 
1,642

Restructuring expenses

 

 
2,564

 

Other noninterest expenses
12,924

 
9,997

 
33,816

 
27,653

Total Noninterest Expense
92,539

 
78,759

 
265,067

 
219,797

Income Before Income Taxes
42,666

 
30,357

 
106,387

 
83,914

Income taxes
8,956

 
8,725

 
21,530

 
22,314

Net Income
33,710

 
21,632

 
84,857

 
61,600

Preferred dividends
(13
)
 
(13
)
 
(39
)
 
(45
)
Interest expense on convertible preferred debt

 
3

 

 
12

Net Income Available to Common Stockholders
$
33,697

 
$
21,622

 
$
84,818

 
$
61,567

Earnings per common share-diluted
$
0.97

 
$
0.72

 
$
2.59

 
$
2.21

Weighted average shares outstanding-diluted
34,644,187

 
29,910,437

 
32,707,481

 
27,833,924






HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
 
For the Quarter Ended
 
9/30/2018
 
6/30/2018
 
3/31/2018
 
12/31/2017
 
9/30/2017
Interest Income
 
 
 
 
 
 
 
 
 
Interest and fees on loans
$
105,733

 
$
96,787

 
$
85,651

 
$
86,108

 
$
82,906

Interest on securities:
 
 
 
 
 
 
 
 
 
Taxable
14,433

 
12,270

 
11,577

 
11,119

 
10,394

Nontaxable
3,490

 
3,584

 
3,579

 
4,401

 
5,086

Interest on federal funds sold

 

 

 
5

 
34

Interest bearing deposits with the Federal Reserve Bank and other banks and other short-term investments
1,238

 
768

 
407

 
435

 
558

Total Interest Income
124,894

 
113,409

 
101,214

 
102,068

 
98,978

Interest Expense
 
 
 
 
 
 
 
 
 
Interest on deposits
10,092

 
7,983

 
5,766

 
5,313

 
5,073

Interest on short-term borrowings
464

 
547

 
268

 
180

 
271

Interest on other borrowings
3,660

 
3,470

 
3,596

 
3,719

 
3,790

Total Interest Expense
14,216

 
12,000

 
9,630

 
9,212

 
9,134

Net Interest Income
110,678

 
101,409

 
91,584

 
92,856

 
89,844

Provision for loan losses
5,238

 
4,831

 
4,263

 
5,328

 
5,705

Net Interest Income After Provision for Loan Losses
105,440

 
96,578

 
87,321

 
87,528

 
84,139

Noninterest Income
 
 
 
 
 
 
 
 
 
Service charges and fees
12,895

 
12,072

 
10,079

 
9,892

 
10,138

Loan servicing income
1,670

 
1,807

 
1,754

 
1,400

 
1,161

Trust fees
4,499

 
4,615

 
4,680

 
4,336

 
3,872

Brokerage and insurance commissions
1,111

 
877

 
907

 
1,071

 
950

Securities gains/(losses), net
(145
)
 
(259
)
 
1,441

 
1,420

 
1,679

Unrealized gain/(loss) on equity securities, net
54

 
71

 
(28
)
 

 

Net gains on sale of loans held for sale
7,410

 
6,800

 
4,051

 
4,290

 
4,997

Valuation adjustment on servicing rights
230

 
(216
)
 
(2
)
 
(8
)
 
5

Income on bank owned life insurance
892

 
700

 
614

 
733

 
766

Other noninterest income
1,149

 
1,167

 
1,220

 
2,394

 
1,409

Total Noninterest Income
29,765

 
27,634

 
24,716

 
25,528

 
24,977

Noninterest Expense
 
 
 
 
 
 
 
 
 
Salaries and employee benefits
49,921

 
50,758

 
48,710

 
43,289

 
45,225

Occupancy
6,348

 
6,315

 
6,043

 
5,892

 
6,223

Furniture and equipment
3,470

 
3,184

 
2,749

 
3,148

 
2,826

Professional fees
11,681

 
9,948

 
8,459

 
8,537

 
8,450

FDIC insurance assessments
1,119

 
684

 
989

 
985

 
894

Advertising
2,754

 
2,145

 
1,940

 
2,088

 
1,358

Core deposit intangibles and customer relationship intangibles amortization
2,626

 
2,274

 
1,863

 
1,825

 
1,863

Other real estate and loan collection expenses
784

 
948

 
732

 
687

 
581

(Gain)/loss on sales/valuations of assets, net
912

 
1,528

 
(197
)
 
833

 
1,342

Restructuring expenses

 

 
2,564

 

 

Other noninterest expenses
12,924

 
11,098

 
9,794

 
10,594

 
9,997

Total Noninterest Expense
92,539

 
88,882

 
83,646

 
77,878

 
78,759

Income Before Income Taxes
42,666

 
35,330

 
28,391

 
35,178

 
30,357

Income taxes
8,956

 
7,451

 
5,123

 
21,506

 
8,725

Net Income
33,710

 
27,879

 
23,268

 
13,672

 
21,632

Preferred dividends
(13
)
 
(13
)
 
(13
)
 
(13
)
 
(13
)
Interest expense on convertible preferred debt

 

 

 

 
3

Net Income Available to Common Stockholders
$
33,697

 
$
27,866

 
$
23,255

 
$
13,659

 
$
21,622

Earnings per common share-diluted
$
0.97

 
$
0.85

 
$
0.76

 
$
0.45

 
$
0.72

Weighted average shares outstanding-diluted
34,644,187

 
32,830,751

 
30,645,212

 
30,209,043

 
29,910,437







HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
 
As of
 
9/30/2018
 
6/30/2018
 
3/31/2018
 
12/31/2017
 
9/30/2017
Assets
 
 
 
 
 
 
 
 
 
Cash and due from banks
$
196,847

 
$
193,069

 
$
143,071

 
$
168,723

 
$
180,751

Interest bearing deposits with the Federal Reserve Bank and other banks and other short-term investments
240,528

 
194,937

 
123,275

 
27,280

 
70,985

Cash and cash equivalents
437,375

 
388,006

 
266,346

 
196,003

 
251,736

Time deposits in other financial institutions
5,836

 
6,803

 
6,297

 
9,820

 
19,793

Securities:
 
 
 
 
 
 
 
 
 
Carried at fair value
2,274,215

 
2,197,117

 
2,027,665

 
2,216,753

 
2,093,385

Held to maturity, at cost
239,908

 
244,271

 
249,766

 
253,550

 
256,355

Other investments, at cost
26,656

 
26,725

 
22,982

 
22,563

 
23,176

Loans held for sale
77,727

 
55,684

 
24,376

 
44,560

 
35,795

Loans:
 
 
 
 
 
 
 
 
 
Held to maturity
7,365,493

 
7,477,697

 
6,746,015

 
6,391,464

 
6,373,415

 Allowance for loan losses
(61,221
)
 
(61,324
)
 
(58,656
)
 
(55,686
)
 
(54,885
)
Loans, net
7,304,272

 
7,416,373

 
6,687,359

 
6,335,778

 
6,318,530

Premises, furniture and equipment, net
198,224

 
199,959

 
172,862

 
174,301

 
178,961

Goodwill
391,668

 
391,668

 
270,305

 
236,615

 
236,615

Core deposit intangibles and customer relationship intangibles, net
50,071

 
52,698

 
41,063

 
35,203

 
37,028

Servicing rights, net
32,039

 
31,996

 
25,471

 
25,857

 
26,599

Cash surrender value on life insurance
162,216

 
159,302

 
143,444

 
142,818

 
142,073

Other real estate, net
11,908

 
11,074

 
11,801

 
10,777

 
13,226

Other assets
123,017

 
120,244

 
106,126

 
106,141

 
122,355

Total Assets
$
11,335,132

 
$
11,301,920

 
$
10,055,863

 
$
9,810,739

 
$
9,755,627

Liabilities and Equity
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
 Demand
$
3,427,819

 
$
3,399,598

 
$
3,094,457

 
$
2,983,128

 
$
3,009,940

 Savings
4,958,430

 
4,864,773

 
4,536,106

 
4,240,328

 
4,227,340

 Time
1,125,914

 
1,224,773

 
910,977

 
923,453

 
994,604

Total deposits
9,512,163

 
9,489,144

 
8,541,540

 
8,146,909

 
8,231,884

Deposits held for sale
50,312

 

 

 

 

Short-term borrowings
131,139

 
229,890

 
131,240

 
324,691

 
171,871

Other borrowings
277,563

 
258,708

 
276,118

 
285,011

 
301,473

Accrued expenses and other liabilities
83,562

 
68,431

 
55,460

 
62,671

 
68,715

Total Liabilities
10,054,739

 
10,046,173

 
9,004,358

 
8,819,282

 
8,773,943

Stockholders' Equity
 
 
 
 
 
 
 
 
 
Preferred equity

 
938

 
938

 
938

 
938

Common stock
34,473

 
34,438

 
31,068

 
29,953

 
29,946

Capital surplus
742,080

 
740,128

 
557,990

 
503,709

 
503,262

Retained earnings
553,662

 
524,786

 
500,959

 
481,331

 
468,556

Accumulated other comprehensive loss
(49,822
)
 
(44,543
)
 
(39,450
)
 
(24,474
)
 
(21,018
)
Total Equity
1,280,393

 
1,255,747

 
1,051,505

 
991,457

 
981,684

Total Liabilities and Equity
$
11,335,132

 
$
11,301,920

 
$
10,055,863

 
$
9,810,739

 
$
9,755,627







HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA

For the Quarter Ended
September 30,

For the Nine Months Ended
September 30,
2018

2017

2018

2017
Average Balances







Assets
$
11,291,289


$
9,639,844


$
10,570,453


$
8,740,703

Loans, net of unearned
7,462,176


6,286,264


7,040,401


5,679,620

Deposits
9,530,743


8,100,028


8,938,297


7,353,399

Earning assets
10,154,591


8,726,228


9,547,147


7,942,810

Interest bearing liabilities
6,544,949


5,697,713


6,151,275


5,346,826

Common stockholders' equity
1,263,226


954,511


1,139,149


833,150

Total stockholders' equity
1,263,795


955,449


1,139,963


834,203

Tangible common stockholders' equity(1)
819,966


691,464


770,884


638,149









Key Performance Ratios







Annualized return on average assets
1.18
%

0.89
%

1.07
%

0.94
%
Annualized return on average common equity (GAAP)
10.58
%

8.99
%

9.95
%

9.88
%
Annualized return on average tangible common equity (non-GAAP)(2)
16.30
%

12.41
%

14.71
%

12.90
%
Annualized ratio of net charge-offs to average loans
0.28
%

0.31
%

0.17
%

0.23
%
Annualized net interest margin (GAAP)
4.32
%

4.08
%

4.25
%

4.00
%
Annualized net interest margin, fully tax-equivalent (non-GAAP)(3)
4.38
%

4.26
%

4.32
%

4.19
%
Efficiency ratio, fully tax-equivalent(4)
62.40
%

64.54
%

65.03
%

66.58
%








Reconciliation of Return on Average Tangible Common Equity (non-GAAP)(5)







Net income available to common shareholders (GAAP)
$
33,697


$
21,622


$
84,818


$
61,567









Average common stockholders' equity (GAAP)
$
1,263,226


$
954,511


$
1,139,149


$
833,150

Less average goodwill
391,668


226,097


323,058


167,009

Less average core deposit intangibles and customer relationship intangibles, net
51,592


36,950


45,207


27,992

Average tangible common equity (non-GAAP)
$
819,966


$
691,464


$
770,884


$
638,149

Annualized return on average common equity (GAAP)
10.58
%

8.99
%

9.95
%

9.88
%
Annualized return on average tangible common equity (non-GAAP)
16.30
%

12.41
%

14.71
%

12.90
%








Reconciliation of Annualized Net Interest Margin, Fully Tax-Equivalent (non-GAAP)(6)







Net Interest Income (GAAP)
$
110,678


$
89,844


$
303,671


$
237,452

Plus tax-equivalent adjustment(7)
1,544


3,925


4,663


11,581

Net interest income, tax-equivalent (non-GAAP)
$
112,222


$
93,769


$
308,334


$
249,033









Average earning assets
$
10,154,591


$
8,726,228


$
9,547,147


$
7,942,810









Annualized net interest margin (GAAP)
4.32
%

4.08
%

4.25
%

4.00
%
Annualized net interest margin, fully tax-equivalent (non-GAAP)
4.38
%

4.26
%

4.32
%

4.19
%








(1) Calculated as common stockholders' equity less goodwill and core deposit intangibles and customer relationship intangibles, net.
(2) Refer to the "Reconciliation of Return on Average Tangible Common Equity (non-GAAP)" table.
(3) Refer to the "Reconciliation of Annualized Net Interest Margin, Fully Tax-Equivalent (non-GAAP)" table.
(4) Refer to the "Reconciliation of Non-GAAP Measure-Efficiency Ratio" table that follows for details of this non-GAAP measure.
(5) Return on average tangible common equity is net income available to common stockholders divided by average common stockholders' equity less goodwill and core deposit intangibles and customer deposit intangibles, net. This financial measure is included as it is considered to be a critical metric to analyze and evaluate financial condition and capital strength. This measure should not be considered a substitute for operating results determined in accordance with GAAP.
(6) Annualized net interest margin, fully tax-equivalent is a non-GAAP measure, which 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. This measure should not be considered a substitute for operating results determined in accordance with GAAP.
(7) Computed on a tax-equivalent basis using an effective tax rate of 21% beginning January 1, 2018, and 35% for all prior periods.






HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
 
For the Quarter Ended
 
9/30/2018
 
6/30/2018
 
3/31/2018
 
12/31/2017
 
9/30/2017
Average Balances
 
 
 
 
 
 
 
 
 
Assets
$
11,291,289

 
$
10,643,306

 
$
9,759,936

 
$
9,807,621

 
$
9,639,844

Loans, net of unearned
7,462,176

 
7,123,182

 
6,525,553

 
6,343,923

 
6,286,264

Deposits
9,530,743

 
9,018,945

 
8,251,140

 
8,293,006

 
8,100,028

Earning assets
10,154,591

 
9,614,800

 
8,857,801

 
8,891,432

 
8,726,228

Interest bearing liabilities
6,544,949

 
6,205,187

 
5,694,337

 
5,663,816

 
5,697,713

Common stockholders' equity
1,263,226

 
1,139,876

 
1,011,580

 
986,026

 
954,511

Total stockholders' equity
1,263,795

 
1,140,814

 
1,012,518

 
986,964

 
955,449

Tangible common stockholders' equity(1)
819,966

 
767,732

 
723,898

 
713,018

 
691,464

 
 
 
 
 
 
 
 
 
 
Key Performance Ratios
 
 
 
 
 
 
 
 
 
Annualized return on average assets
1.18
%
 
1.05
%
 
0.97
%
 
0.55
%
 
0.89
%
Annualized return on average common equity (GAAP)
10.58
%
 
9.81
%
 
9.32
%
 
5.50
%
 
8.99
%
Annualized return on average tangible common equity (non-GAAP)(2)
16.30
%
 
14.56
%
 
13.03
%
 
7.60
%
 
12.41
%
Annualized ratio of net charge-offs to average loans
0.28
%
 
0.12
%
 
0.08
%
 
0.28
%
 
0.31
%
Annualized net interest margin (GAAP)
4.32
%
 
4.23
%
 
4.19
%
 
4.14
%
 
4.08
%
Annualized net interest margin, fully tax-equivalent (non-GAAP)(3)
4.38
%
 
4.30
%
 
4.26
%
 
4.30
%
 
4.26
%
Efficiency ratio, fully tax-equivalent(4)
62.40
%
 
65.04
%
 
68.21
%
 
62.26
%
 
64.54
%
 
 
 
 
 
 
 
 
 
 
Reconciliation of Return on Average Tangible Common Equity (non-GAAP)(5)
 
 
 
 
 
 
 
 
 
Net income available to common shareholders (GAAP)
$
33,697

 
$
27,866

 
$
23,255

 
$
13,659

 
$
21,622

 
 
 
 
 
 
 
 
 
 
Average common stockholders' equity (GAAP)
$
1,263,226

 
$
1,139,876

 
$
1,011,580

 
$
986,026

 
$
954,511

   Less average goodwill
391,668

 
325,781

 
250,172

 
236,615

 
226,097

Less average core deposit intangibles and customer relationship intangibles, net
51,592

 
46,363

 
37,510

 
36,393

 
36,950

Average tangible common equity (non-GAAP)
$
819,966

 
$
767,732

 
$
723,898

 
$
713,018

 
$
691,464

Annualized return on average common equity (GAAP)
10.58
%
 
9.81
%
 
9.32
%
 
5.50
%
 
8.99
%
Annualized return on average tangible common equity (non-GAAP)
16.30
%
 
14.56
%
 
13.03
%
 
7.60
%
 
12.41
%
 
 
 
 
 
 
 
 
 
 
Reconciliation of Annualized Net Interest Margin, Fully Tax-Equivalent (non-GAAP)(6)
 
 
 
 
 
 
 
 
 
Net Interest Income (GAAP)
$
110,678

 
$
101,409

 
$
91,584

 
$
92,856

 
$
89,844

    Plus tax-equivalent adjustment(7)
1,544

 
1,575

 
1,544

 
3,558

 
3,925

Net interest income, fully tax-equivalent (non-GAAP)
$
112,222

 
$
102,984

 
$
93,128

 
$
96,414

 
$
93,769

 
 
 
 
 
 
 
 
 
 
Average earning assets
$
10,154,591

 
$
9,614,800

 
$
8,857,801

 
$
8,891,432

 
$
8,726,228

 
 
 
 
 
 
 
 
 
 
Annualized net interest margin (GAAP)
4.32
%
 
4.23
%
 
4.19
%
 
4.14
%
 
4.08
%
Annualized net interest margin, fully tax-equivalent (non-GAAP)
4.38
%
 
4.30
%
 
4.26
%
 
4.30
%
 
4.26
%
 
(1) Calculated as common stockholders' equity less goodwill and core deposit intangibles and customer relationship intangibles, net.
(2) Refer to the "Reconciliation of Return on Average Tangible Common Equity (non-GAAP)" table.
(3) Refer to the "Reconciliation of Annualized Net Interest Margin, Fully Tax-Equivalent (non-GAAP)" table.
(4) Refer to the "Reconciliation of Non-GAAP Measure-Efficiency Ratio" table that follows for details of this non-GAAP measure.
(5) Return on average common tangible equity is net income available to common stockholders divided by average common stockholders' equity less goodwill and core deposit intangibles and customer relationship intangibles, net. This financial measure is included as it is considered to be a critical metric to analyze and evaluate financial condition and capital strength. This measure should not be considered a substitute for operating results determined in accordance with GAAP.
(6) Annualized net interest margin, fully tax-equivalent is a non-GAAP measure, which 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. This measure should not be considered a substitute for operating results determined in accordance with GAAP.
(7) Computed on a tax-equivalent basis using an effective tax rate of 21% beginning January 1, 2018, and 35% for all prior periods.





HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA

For the Quarter Ended
September 30,

For the Nine Months Ended
September 30,
Reconciliation of Non-GAAP Measure-Efficiency Ratio(1)
2018

2017

2018

2017
Net interest income
$
110,678


$
89,844


$
303,671


$
237,452

Tax-equivalent adjustment(2)
1,544


3,925


4,663


11,581

Fully tax-equivalent net interest income
112,222


93,769

 
308,334

 
249,033

Noninterest income
29,765


24,977


82,115


76,494

Securities (gains)/losses, net
145


(1,679
)

(1,037
)

(5,553
)
Unrealized (gain)/loss on equity securities, net
(54
)
 

 
(97
)
 

Adjusted income
$
142,078

 
$
117,067

 
$
389,315

 
$
319,974













Total noninterest expenses
$
92,539


$
78,759


$
265,067


$
219,797

Less:










Core deposit intangibles and customer relationship intangibles amortization
2,626


1,863


6,763


4,252

Partnership investment in tax credit projects
338




338


876

(Gain)/loss on sales/valuations of assets, net
912


1,342


2,243


1,642

   Restructuring expenses

 

 
2,564

 

Adjusted noninterest expenses
$
88,663

 
$
75,554

 
$
253,159

 
$
213,027









Efficiency ratio, fully tax-equivalent (non-GAAP)
62.40
%

64.54
%

65.03
%

66.58
%
Reconciliation of Non-GAAP Measure-Efficiency Ratio(1)
For the Quarter Ended
9/30/2018
 
6/30/2018
 
3/31/2018
 
12/31/2017
 
9/30/2017
Net interest income
$
110,678

 
$
101,409

 
$
91,584

 
$
92,856

 
$
89,844

Tax-equivalent adjustment(2)
1,544

 
1,575

 
1,544

 
3,558

 
3,925

Fully tax-equivalent net interest income
112,222

 
102,984

 
93,128

 
96,414

 
93,769

Noninterest income
29,765

 
27,634

 
24,716

 
25,528

 
24,977

Securities (gains)/losses, net
145

 
259

 
(1,441
)
 
(1,420
)
 
(1,679
)
Unrealized (gain)/loss on equity securities, net
(54
)
 
(71
)
 
28

 

 

Gain on extinguishment of debt

 

 

 
(1,280
)
 

Adjusted income
$
142,078

 
$
130,806

 
$
116,431

 
$
119,242

 
$
117,067

 
 
 
 
 
 
 
 
 
 
Total noninterest expenses
$
92,539

 
$
88,882

 
$
83,646

 
$
77,878

 
$
78,759

Less:
 
 
 
 
 
 
 
 
 
Core deposit intangibles and customer relationship intangibles amortization
2,626

 
2,274

 
1,863

 
1,825

 
1,863

Partnership investment in tax credit projects
338

 

 

 
984

 

(Gain)/loss on sales/valuation of assets, net
912

 
1,528

 
(197
)
 
833

 
1,342

   Restructuring expenses

 

 
2,564

 

 

Adjusted noninterest expenses
$
88,663

 
$
85,080

 
$
79,416

 
$
74,236

 
$
75,554

 
 
 
 
 
 
 
 
 
 
Efficiency ratio, fully tax-equivalent (non-GAAP)
62.40
%
 
65.04
%
 
68.21
%
 
62.26
%
 
64.54
%
 
 
 
 
 
 
 
 
 
 
(1) 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 the table. This measure should not be considered a substitute for operating results determined in accordance with GAAP.
(2) Computed on a tax-equivalent basis using an effective tax rate of 21% beginning January 1, 2018, and 35% for all prior periods.






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
 
9/30/2018
 
6/30/2018
 
3/31/2018
 
12/31/2017
 
9/30/2017
Common Share Data
 
 
 
 
 
 
 
 
 
Book value per common share
$
37.14

 
$
36.44

 
$
33.81

 
$
33.07

 
$
32.75

Tangible book value per common share (non-GAAP)(1)
$
24.33

 
$
23.53

 
$
23.79

 
$
23.99

 
$
23.61

Common shares outstanding, net of treasury stock
34,473,029

 
34,438,445

 
31,068,239

 
29,953,356

 
29,946,069

Tangible common equity ratio (non-GAAP)(2)
7.70
%
 
7.46
%
 
7.59
%
 
7.53
%
 
7.46
%
 
 
 
 
 
 
 
 
 
 
Reconciliation of Tangible Book Value Per Common Share (non-GAAP)(3)
 
 
 
 
 
 
 
 
 
Common stockholders' equity (GAAP)
$
1,280,393

 
$
1,254,809

 
$
1,050,567

 
$
990,518

 
$
980,746

Less goodwill
391,668

 
391,668

 
270,305

 
236,615

 
236,615

Less core deposit intangibles and customer relationship intangibles, net
50,071

 
52,698

 
41,063

 
35,203

 
37,028

Tangible common stockholders' equity (non-GAAP)
$
838,654

 
$
810,443

 
$
739,199

 
$
718,700

 
$
707,103

 
 
 
 
 
 
 
 
 
 
Common shares outstanding, net of treasury stock
34,473,029

 
34,438,445

 
31,068,239

 
29,953,356

 
29,946,069

Common stockholders' equity (book value) per share (GAAP)
$
37.14

 
$
36.44

 
$
33.81

 
$
33.07

 
$
32.75

Tangible book value per common share (non-GAAP)
$
24.33

 
$
23.53

 
$
23.79

 
$
23.99

 
$
23.61

 
 
 
 
 
 
 
 
 
 
Reconciliation of Tangible Common Equity Ratio (non-GAAP)(4)
 
 
 
 
 
 
 
 
 
Total assets (GAAP)
$
11,335,132

 
$
11,301,920

 
$
10,055,863

 
$
9,810,739

 
$
9,755,627

    Less goodwill
391,668

 
391,668

 
270,305

 
236,615

 
236,615

 Less core deposit intangibles and customer relationship
 intangibles, net
50,071

 
52,698

 
41,063

 
35,203

 
37,028

Total tangible assets (non-GAAP)
$
10,893,393

 
$
10,857,554

 
$
9,744,495

 
$
9,538,921

 
$
9,481,984

Tangible common equity ratio (non-GAAP)
7.70
%
 
7.46
%
 
7.59
%
 
7.53
%
 
7.46
%
 
 
 
 
 
 
 
 
 
 
Loan Data
 
 
 
 
 
 
 
 
 
Loans held to maturity:
 
 
 
 
 
 
 
 
 
Commercial and commercial real estate
$
5,610,953

 
$
5,721,138

 
$
5,129,777

 
$
4,809,875

 
$
4,777,856

Residential mortgage
676,941

 
683,051

 
624,725

 
624,279

 
635,611

Agricultural and agricultural real estate
574,048

 
562,353

 
518,386

 
511,588

 
511,764

Consumer
506,181

 
512,899

 
474,929

 
447,484

 
450,088

Unearned discount and deferred loan fees
(2,630
)
 
(1,744
)
 
(1,802
)
 
(1,762
)
 
(1,904
)
Total loans held to maturity
$
7,365,493

 
$
7,477,697

 
$
6,746,015

 
$
6,391,464

 
$
6,373,415

 
 
 
 
 
 
 
 
 
 
Other Selected Trend Information
 
 
 
 
 
 
 
 
 
Effective tax rate
20.99
%
 
21.09
%
 
18.04
%
 
61.13
%
 
28.74
%
Full time equivalent employees
2,211

 
2,216

 
2,022

 
2,008

 
2,024

Total residential mortgage loan applications
$