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Section 1: 8-K (8-K 2018 Q4 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)
January 28, 2019


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 January 28, 2019, Heartland Financial USA, Inc. issued a press release announcing its earnings for the quarter ended December 31, 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 January 28, 2019.


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: January 28, 2019
 
HEARTLAND FINANCIAL USA, INC.
 
 
 
 
 
 
By:
/s/ Bryan R. McKeag
 
 
 
Bryan R. McKeag
 
 
 
Executive Vice President
 
 
 
Chief Financial Officer





(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1 EARNINGS RELEASE 2018 Q4)

Exhibit


396506391_image0a01a03.jpg
 
396506391_image1a01a03.jpg

CONTACT:
FOR IMMEDIATE RELEASE
Bryan R. McKeag
January 28, 2019
Executive Vice President
 
Chief Financial Officer
 
(563) 589-1994
 
 

HEARTLAND FINANCIAL USA, INC. ANNOUNCES RECORD 2018 ANNUAL NET INCOME AND SOLID FOURTH QUARTER RESULTS

Highlights
§
Quarterly net income available to common stockholders of $32.1 million, an increase of $18.5 million or 135% from the fourth quarter of 2017
§
Annual net income available to common stockholders of $117.0 million, an increase of $41.7 million or 55% from 2017
§
Diluted earnings per common share of $0.93 for the quarter, an increase of $0.48 per share or 107% from the fourth quarter of 2017
§
Diluted earnings per common share of $3.52 for the year, an increase of $0.87 per share or 33% from 2017
§
Return on average common equity of 9.88% for the quarter and 9.93% for the year
§
Return on average tangible common equity (non-GAAP)(1) of 15.00% for the quarter and 14.79% for the year
§
Efficiency ratio, fully tax-equivalent (non-GAAP)(2) of 59.37% for the quarter and 63.54% for the year
§
Declared and paid a special dividend of $0.05 per common share in December 2018
§
Announced agreement to acquire Blue Valley Ban Corp. on January 16, 2019
 
Quarter Ended
December 31,
 
Year Ended
December 31,
 
2018
 
2017
 
2018
 
2017
Net income available to common stockholders (in millions)
$
32.1

 
$
13.7

 
$
117.0

 
$
75.2

Diluted earnings per common share
0.93

 
0.45

 
3.52

 
2.65

 
 
 
 
 
 
 
 
Return on average assets
1.12
%
 
0.55
%
 
1.09
%
 
0.83
%
Return on average common equity
9.88

 
5.50

 
9.93

 
8.63

Return on average tangible common equity (non-GAAP)(1)
15.00

 
7.60

 
14.79

 
11.45

Net interest margin
4.28

 
4.14

 
4.26

 
4.04

Net interest margin, fully tax-equivalent (non-GAAP)(3)
4.34

 
4.30

 
4.32

 
4.22

Efficiency ratio, fully tax-equivalent (non-GAAP)(2)
59.37

 
62.26

 
63.54

 
65.40

"Heartland had record earnings again in 2018. Net income available to common stockholders was $117.0 million, a 55 percent increase over 2017, and diluted earnings per common share increased 33 percent."
Lynn B. Fuller, executive operating chairman, Heartland Financial USA, Inc.

(1) Refer to the "Reconciliation of Return on Average Tangible Common Equity (non-GAAP)" table included in this earnings release.
(2) Refer to the "Reconciliation of Non-GAAP measure-Efficiency Ratio" table included in this earnings release.
(3) Refer to the "Reconciliation of Annualized Net Interest Margin, Fully Tax-Equivalent (non-GAAP)" table included in this earnings release.






Dubuque, Iowa, Monday, January 28, 2019-Heartland Financial USA, Inc. (NASDAQ: HTLF) today reported net income available to common stockholders of $32.1 million for the quarter ended December 31, 2018, compared to $13.7 million for the fourth quarter of 2017, which was an increase of $18.5 million or 135%. Earnings per diluted common share were $0.93 for the fourth quarter of 2018, which was an increase of $0.48 or 107% from $0.45 per diluted common share for the same quarter of 2017. Return on average common equity was 9.88% and return on average assets was 1.12% for the fourth quarter of 2018, compared to 5.50% and 0.55%, respectively, for the same quarter in 2017.
Net income available to common stockholders for the year 2018 was $117.0 million, an increase of $41.7 million or 55% from $75.2 million recorded for 2017. Earnings per diluted common share for the year ended December 31, 2018, were $3.52 compared to $2.65 per diluted common share for the year 2017, which was an increase of $0.87 or 33%. Return on average common equity was 9.93% and return on average assets was 1.09% for the year 2018, compared to 8.63% and 0.83%, respectively, for the same period in 2017.
Commenting on Heartland’s fourth quarter and annual results, Lynn B. Fuller, Heartland’s executive operating chairman, said, "Heartland had record earnings again in 2018. Net income available to common stockholders was $117.0 million, a 55 percent increase over 2017, and diluted earnings per common share increased 33 percent."
During the fourth quarter of 2018, Heartland entered into an agreement to sell the loan portfolios of its consumer finance subsidiaries, Citizens Finance Co. and Citizens Finance of Illinois Co. (collectively, "Citizens"). The loan portfolios had a fair value of $67.2 million and were classified as held for sale as of December 31, 2018. The transaction closed on January 11, 2019.
Heartland continued its branch optimization strategy in the fourth quarter of 2018 with the announcement of two branch sales, which resulted in the reclassification of $13.7 million of loans and $50.6 million of deposits as held for sale. These transactions, in addition to the branch sale announced in the third quarter of 2018, are expected to close in the first half of 2019.
During the fourth quarter of 2018, Heartland entered into arrangements to fully outsource its legacy residential mortgage lending business and has partnered with third party providers to offer residential mortgage loans to customers in many of its markets. PrimeWest Mortgage Corporation, a wholly-owned subsidiary of First Bank & Trust, continues to provide mortgage loans to customers in Texas and has expanded to serve other customers in Heartland's Southwestern markets.
Bruce K. Lee, Heartland's president and chief executive officer, stated, "The decisions to exit the consumer finance business and alter our approach to providing residential mortgage loans were in response to changes in the competitive landscape in these markets. These actions, in addition to our branch optimization strategy, will allow us to focus our resources in areas with higher growth and earnings potential."
On January 16, 2019, Heartland entered into a definitive merger agreement to acquire Blue Valley Ban Corp., and its wholly-owned subsidiary, Bank of Blue Valley, headquartered in Overland Park, Kansas. As of the announcement date, the transaction, in which all of the issued and outstanding shares of the Bank of Blue Valley stock will be exchanged for shares of Heartland common stock, was valued at approximately $93.9 million. Simultaneous with the closing of the transaction, Bank of Blue Valley will merge into Heartland's Kansas-based subsidiary, Morrill & Janes Bank and Trust Company, and the combined entity will operate as Bank of Blue Valley. The transaction is subject to certain potential adjustments and customary closing conditions. The transaction is expected to close in the second quarter of 2019 with a systems conversion planned for the third quarter of 2019. As of September 30, 2018, Bank of Blue Valley had total assets of approximately $725 million, which included approximately $527 million of net loans outstanding, and approximately $608 million of deposits.
Net Interest Margin Increases from Fourth Quarter 2017
Net interest margin, expressed as a percentage of average earning assets, was 4.28% (4.34% on a fully tax-equivalent basis) during the fourth quarter of 2018, compared to 4.32% (4.38% on a fully tax-equivalent basis) during the third quarter of 2018 and 4.14% (4.30% on a fully tax-equivalent basis) during the fourth quarter of 2017.
Lee said, “During this recent period of rising interest rates, we were pleased to see our net interest margin on a fully tax-equivalent basis remain strong at 4.34% for the quarter and 4.32% for the year."
Interest income for the fourth quarter of 2018 was $126.3 million, an increase of $24.2 million or 24%, compared to the $102.1 million recorded in the fourth quarter of 2017. The tax-equivalent adjustment, which accounts for income





taxes saved on the interest earned on nontaxable securities and loans, was $1.6 million for the fourth quarter of 2018 and $3.6 million for the fourth quarter of 2017. With these adjustments, interest income on a tax-equivalent basis was $127.9 million for the fourth quarter of 2018, an increase of $22.2 million or 21%, compared to $105.6 million for the fourth quarter of 2017. The increase in interest income on a tax-equivalent basis was primarily due to the increase in average earning assets and the recent increases in market interest rates. Average earning assets totaled $10.23 billion during the fourth quarter of 2018 compared to $8.89 billion during the fourth quarter of 2017, which was a $1.33 billion or 15% increase. The average rate on earning assets increased 25 basis points to 4.96% for the fourth quarter of 2018 compared to 4.71% for the same quarter in 2017.
Interest expense for the fourth quarter of 2018 was $16.0 million, an increase of $6.8 million or 74% from $9.2 million in the fourth quarter of 2017. Average interest bearing deposits for the quarter ended December 31, 2018, totaled $6.16 billion, an increase of $953.1 million or 18% from $5.21 billion in the same quarter in 2017. The average interest rate paid on Heartland's interest bearing deposits increased 36 basis points to 0.76% for the fourth quarter of 2018 compared to 0.40% for the same quarter of 2017. Heartland's average borrowings decreased $59.7 million or 13% to $397.5 million for the fourth quarter of 2018 compared to $457.2 million for the fourth quarter of 2017. The average rate paid on Heartland's average borrowings was 4.19% and 3.38% for the fourth quarter of 2018 and 2017, respectively. The increase of 32 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 increased $17.4 million or 19% to $110.3 million in the fourth quarter of 2018 from the $92.9 million recorded in the fourth quarter of 2017. After the tax-equivalent adjustment discussed above, net interest income on a tax-equivalent basis totaled $111.8 million during the fourth quarter of 2018, an increase of $15.4 million or 16% from the $96.4 million recorded during the fourth quarter of 2017.
Noninterest Income and Noninterest Expenses Increase from Fourth Quarter 2017
Noninterest income totaled $27.0 million during the fourth quarter of 2018 compared to $25.5 million during the fourth quarter of 2017, an increase of $1.5 million or 6%. Service charges and fees totaled $13.7 million during the fourth quarter of 2018 compared to $9.9 million during the fourth quarter of 2017, an increase of $3.8 million or 38%. Service charges related to credit card income totaled $3.5 million for the fourth quarter of 2018, an increase of $1.5 million or 76% from $2.0 million for the fourth quarter of 2017. The remainder of the increase was primarily attributable to a larger customer base as a result of recent acquisitions. Securities gains, net, totaled $48,000 for the fourth quarter of 2018 compared to $1.4 million for the same quarter of 2017, which was a decrease of $1.4 million or 97%. Gains on sale of loans held for sale totaled $3.2 million during the fourth quarter of 2018 compared to $4.3 million during the fourth quarter of 2017, a decrease of $1.1 million or 26%.
For the fourth quarter of 2018, noninterest expenses totaled $88.8 million compared to $77.9 million during the fourth quarter of 2017, an increase of $10.9 million or 14%. Salaries and employee benefits totaled $46.7 million for the fourth quarter of 2018, which was an increase of $3.4 million or 8% from $43.3 million for the fourth quarter of 2017. Full time equivalent employees totaled 2,045 as of December 31, 2018, compared to 2,008 as of December 31, 2017. Other noninterest expenses increased $5.3 million or 50% to $15.9 million for the fourth quarter of 2018 compared to $10.6 million for the fourth quarter of 2017. Included in other noninterest expenses for the fourth quarter of 2018 were $3.9 million of write-downs on partnership investments that qualify for tax credits.
Heartland's effective tax rate was 17.22% for the fourth quarter of 2018 compared to 61.13% for the fourth quarter of 2017. Exclusive of the increase to income tax expense of $10.4 million recorded as a result of the passage of the Tax Cuts and Jobs Act in December 2017, Heartland's effective tax rate was 31.58% for the fourth quarter of 2017. Federal low-income housing tax credits included in the determination of Heartland's income taxes totaled $307,000 during both the fourth quarter of 2018 and 2017. Additionally, Heartland's income tax calculation included solar energy tax credits of $2.6 million and $179,000 for the fourth quarter of 2018 and 2017, respectively.
Loans and Deposits Increase Since December 31, 2017
Total assets were $11.41 billion at December 31, 2018, an increase of $1.60 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. ("Signature") transaction and $1.12 billion of assets acquired at fair value in the First Bank Lubbock Bancshares, Inc. ("FBLB") transaction, total assets increased $52.8 million or 1% since December 31, 2017. Securities represented 24% of total assets at December 31, 2018, compared to 25% at December 31, 2017.
Total loans held to maturity were $7.41 billion at December 31, 2018, compared to $6.39 billion at year-end 2017, an increase of $1.02 billion or 16%. Excluding $96.0 million of loans that were classified as held for sale in conjunction





with the pending branch sales and the Citizens transaction and $1.01 billion of loans acquired in 2018, total loans held to maturity increased $106.7 million or 2% since year-end 2017.
Total deposits were $9.40 billion as of December 31, 2018, compared to $8.15 billion at year-end 2017, an increase of $1.25 billion or 15%. This increase included $1.25 billion of deposits, at fair value, acquired in the Signature and FBLB transactions. As of December 31, 2018, Heartland had $106.4 million of deposits classified as held for sale in conjunction with the pending branch sales. Exclusive of these transactions, total deposits increased $104.8 million or 1% since year-end 2017.
Demand deposits totaled $3.26 billion at December 31, 2018, an increase of $281.6 million or 9% from $2.98 billion at year-end 2017. Excluding $299.0 million of demand deposits acquired in 2018 and $25.5 million of demand deposits classified as held for sale, demand deposits increased $8.1 million or less than 1% since December 31, 2017.
Savings deposits increased $867.6 million or 20% to $5.11 billion at December 31, 2018 from $4.24 billion at year-end 2017. Excluding $619.0 million of savings deposits acquired in 2018 and $70.1 million of savings deposits classified as held for sale, savings deposits increased $318.7 million or 8% since year-end 2017.
Time deposits totaled $1.02 billion at December 31, 2018, which was an increase of $100.3 million or 11% from $923.5 billion at December 31, 2017. Excluding $333.1 million of time deposits acquired in 2018 and $10.9 million of time deposits classified as held for sale, time deposits decreased $222.0 million or 24% since December 31, 2017.
Nonperforming Assets and Provision for Loan Losses Increase Since December 31, 2017
Nonperforming assets were $79.3 million at December 31, 2018, compared to $74.6 million at December 31, 2017. Exclusive of $10.4 million of nonperforming assets, at fair value, acquired in 2018, nonperforming assets decreased $5.8 million or 8% since year-end 2017. Nonperforming loans were $72.7 million or 0.98% of total loans at December 31, 2018, compared to $63.4 million or 0.99% of total loans at December 31, 2017.
The allowance for loan losses at December 31, 2018, was 0.84% of loans and 85.27% of nonperforming loans compared to 0.87% of loans and 87.82% of nonperforming loans at December 31, 2017. The provision for loan losses was $9.7 million and $5.3 million for the fourth quarter of 2018 and 2017, respectively. The increased provision expense in the fourth quarter of 2018 significantly impacted Heartland's net income for the quarter. The increase was primarily due to two impaired commercial loans from acquired portfolios totaling $5.8 million for which provision expense of $4.0 million was required. Net charge-offs for the fourth quarter of 2018 totaled $8.9 million compared to $4.5 million for the fourth quarter of 2017, which was an increase of $4.4 million or 97%. The Citizens' loan portfolios were required to be recorded at fair value due to the held for sale classification, which resulted in a charge-off of $3.1 million in the fourth quarter of 2018.
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 January 27, 2020, 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 $11.4 billion. The company provides banking, mortgage, private client, investment and insurance services to individuals and businesses. Heartland currently has 121 banking locations serving 89 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 press 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 the projected results in Heartland's 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, consist of the following: (i) the strength of the national economy and the economies of local communities





in which Heartland conducts business; (ii) the economic impact of past and any future terrorist threats and attacks and any acts of war; (iii) changes in state and federal banking laws and regulations and governmental policies relating to financial institutions; (iv) changes in interest rates and prepayment rates of Heartland's assets; (v) increased competition in the financial services sector and the inability of Heartland to attract new customers; (vi) changes in technology and Heartland's 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 Heartland; and (xi) changes in accounting policies and practices. All statements in this press 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
 
For the Year Ended
 
December 31,
 
December 31,
 
2018
 
2017
 
2018
 
2017
Interest Income
 
 
 
 



Interest and fees on loans
$
105,700

 
$
86,108

 
$
393,871


$
304,006

Interest on securities:

 

 



Taxable
15,851

 
11,119

 
54,131


38,365

Nontaxable
3,467

 
4,401

 
14,120


19,698

Interest on federal funds sold

 
5

 


42

Interest bearing deposits with the Federal Reserve Bank and other banks and other short-term investments
1,285

 
435

 
3,698


1,547

Total Interest Income
126,303

 
102,068

 
465,820

 
363,658

Interest Expense

 

 



Interest on deposits
11,826

 
5,313

 
35,667


18,279

Interest on short-term borrowings
417

 
180

 
1,696


678

Interest on other borrowings
3,777

 
3,719

 
14,503


14,393

Total Interest Expense
16,020

 
9,212

 
51,866

 
33,350

Net Interest Income
110,283

 
92,856

 
413,954

 
330,308

Provision for loan losses
9,681

 
5,328

 
24,013


15,563

Net Interest Income After Provision for Loan Losses
100,602

 
87,528

 
389,941

 
314,745

Noninterest Income
 
 

 



Service charges and fees
13,660

 
9,892

 
48,706


39,183

Loan servicing income
2,061

 
1,400

 
7,292


5,636

Trust fees
4,599

 
4,336

 
18,393


15,818

Brokerage and insurance commissions
1,618

 
1,071

 
4,513


4,033

Securities gains/(losses), net
48

 
1,420

 
1,085


6,973

Unrealized gain/(loss) on equity securities, net
115

 

 
212



Gains on sale of loans held for sale
3,189

 
4,290

 
21,450


22,251

Valuation adjustment on servicing rights
(58
)
 
(8
)
 
(46
)

21

Income on bank owned life insurance
587

 
733

 
2,793


2,772

Other noninterest income
1,226

 
2,394

 
4,762


5,335

Total Noninterest Income
27,045

 
25,528

 
109,160

 
102,022

Noninterest Expense

 

 



Salaries and employee benefits
46,729

 
43,289

 
196,118


171,407

Occupancy
6,622

 
5,892

 
25,328


22,244

Furniture and equipment
3,126

 
3,148

 
12,529


11,061

Professional fees
9,723

 
8,537

 
39,811


32,879

FDIC insurance assessments
907

 
985

 
3,699


3,595

Advertising
2,726

 
2,088

 
9,565


7,229

Core deposit intangibles and customer relationship intangibles amortization
2,592

 
1,825

 
9,355


6,077

Other real estate and loan collection expenses
574

 
687

 
3,038


2,461

(Gain)/loss on sales/valuations of assets, net
(35
)

833


2,208


2,475

Restructuring expenses

 

 
2,564

 

Other noninterest expenses
15,857

 
10,594

 
49,673


38,247

Total Noninterest Expense
88,821

 
77,878

 
353,888

 
297,675

Income Before Income Taxes
38,826

 
35,178

 
145,213

 
119,092

Income taxes
6,685

 
21,506

 
28,215


43,820

Net Income
32,141

 
13,672

 
116,998

 
75,272

Preferred dividends

 
(13
)
 
(39
)

(58
)
Interest expense on convertible debt

 

 

 
12

Net Income Available to Common Stockholders
$
32,141

 
$
13,659

 
$
116,959

 
$
75,226

Earnings per common share-diluted
$
0.93

 
$
0.45

 
$
3.52


$
2.65

Weighted average shares outstanding-diluted
34,670,180

 
30,209,043

 
33,213,148


28,425,652






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

For the Quarter Ended

12/31/2018

9/30/2018

6/30/2018

3/31/2018

12/31/2017
Interest Income









Interest and fees on loans
$
105,700


$
105,733


$
96,787


$
85,651


$
86,108

Interest on securities:









Taxable
15,851


14,433


12,270


11,577


11,119

Nontaxable
3,467


3,490


3,584


3,579


4,401

Interest on federal funds sold








5

Interest bearing deposits with the Federal Reserve Bank and other banks and other short-term investments
1,285


1,238


768


407


435

Total Interest Income
126,303

 
124,894

 
113,409

 
101,214

 
102,068

Interest Expense









Interest on deposits
11,826


10,092


7,983


5,766


5,313

Interest on short-term borrowings
417


464


547


268


180

Interest on other borrowings
3,777


3,660


3,470


3,596


3,719

Total Interest Expense
16,020

 
14,216

 
12,000

 
9,630

 
9,212

Net Interest Income
110,283

 
110,678

 
101,409

 
91,584

 
92,856

Provision for loan losses
9,681


5,238


4,831


4,263


5,328

Net Interest Income After Provision for Loan Losses
100,602

 
105,440

 
96,578

 
87,321

 
87,528

Noninterest Income
 
 
 
 
 
 
 
 
 
Service charges and fees
13,660


12,895


12,072


10,079


9,892

Loan servicing income
2,061


1,670


1,807


1,754


1,400

Trust fees
4,599


4,499


4,615


4,680


4,336

Brokerage and insurance commissions
1,618


1,111


877


907


1,071

Securities gains/(losses), net
48


(145
)

(259
)

1,441


1,420

Unrealized gain/(loss) on equity securities, net
115


54


71


(28
)


Net gains on sale of loans held for sale
3,189


7,410


6,800


4,051


4,290

Valuation adjustment on servicing rights
(58
)

230


(216
)

(2
)

(8
)
Income on bank owned life insurance
587


892


700


614


733

Other noninterest income
1,226


1,149


1,167


1,220


2,394

Total Noninterest Income
27,045

 
29,765

 
27,634

 
24,716

 
25,528

Noninterest Expense
 
 
 
 
 
 
 
 
 
Salaries and employee benefits
46,729


49,921


50,758


48,710


43,289

Occupancy
6,622


6,348


6,315


6,043


5,892

Furniture and equipment
3,126


3,470


3,184


2,749


3,148

Professional fees
9,723


11,681


9,948


8,459


8,537

FDIC insurance assessments
907


1,119


684


989


985

Advertising
2,726


2,754


2,145


1,940


2,088

Core deposit intangibles and customer relationship intangibles amortization
2,592


2,626


2,274


1,863


1,825

Other real estate and loan collection expenses
574


784


948


732


687

(Gain)/loss on sales/valuations of assets, net
(35
)

912


1,528


(197
)

833

Restructuring expenses

 

 

 
2,564

 

Other noninterest expenses
15,857


12,924


11,098


9,794


10,594

Total Noninterest Expense
88,821

 
92,539

 
88,882

 
83,646

 
77,878

Income Before Income Taxes
38,826

 
42,666

 
35,330

 
28,391

 
35,178

Income taxes
6,685


8,956


7,451


5,123


21,506

Net Income
32,141

 
33,710

 
27,879

 
23,268

 
13,672

Preferred dividends


(13
)

(13
)

(13
)

(13
)
Interest expense on convertible debt

 

 

 

 

Net Income Available to Common Stockholders
$
32,141

 
$
33,697

 
$
27,866

 
$
23,255

 
$
13,659

Earnings per common share-diluted
$
0.93


$
0.97


$
0.85


$
0.76


$
0.45

Weighted average shares outstanding-diluted
34,670,180


34,644,187


32,830,751


30,645,212


30,209,043







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

As Of

12/31/2018

9/30/2018

6/30/2018

3/31/2018

12/31/2017
Assets









Cash and due from banks
$
223,135


$
196,847


$
193,069


$
143,071


$
168,723

Interest bearing deposits with the Federal Reserve Bank and other banks and other short-term investments
50,495

 
240,528

 
194,937

 
123,275

 
27,280

Cash and cash equivalents
273,630

 
437,375

 
388,006

 
266,346

 
196,003

Time deposits in other financial institutions
4,672

 
5,836

 
6,803

 
6,297

 
9,820

Securities:
 
 
 
 
 
 
 
 
 
Carried at fair value
2,450,709

 
2,274,215

 
2,197,117

 
2,027,665

 
2,216,753

Held to maturity, at cost
236,283

 
239,908

 
244,271

 
249,766

 
253,550

Other investments, at cost
28,396

 
26,656

 
26,725

 
22,982

 
22,563

Loans held for sale
119,801


77,727


55,684


24,376


44,560

Loans:









Held to maturity
7,407,697


7,365,493


7,477,697


6,746,015


6,391,464

 Allowance for loan losses
(61,963
)

(61,221
)

(61,324
)

(58,656
)

(55,686
)
Loans, net
7,345,734

 
7,304,272

 
7,416,373

 
6,687,359

 
6,335,778

Premises, furniture and equipment, net
194,676


198,224


199,959


172,862


174,301

Goodwill
391,668

 
391,668

 
391,668

 
270,305

 
236,615

Core deposit intangibles and customer relationship intangibles, net
47,479


50,071


52,698


41,063


35,203

Servicing rights, net
31,072


32,039


31,996


25,471


25,857

Cash surrender value on life insurance
162,892

 
162,216

 
159,302

 
143,444

 
142,818

Other real estate, net
6,153


11,908


11,074


11,801


10,777

Other assets
114,841


123,017


120,244


106,126


106,141

Total Assets
$
11,408,006

 
$
11,335,132

 
$
11,301,920

 
$
10,055,863

 
$
9,810,739

Liabilities and Equity









Liabilities









Deposits:









 Demand
$
3,264,737


$
3,427,819


$
3,399,598


$
3,094,457


$
2,983,128

 Savings
5,107,962


4,958,430


4,864,773


4,536,106


4,240,328

 Time
1,023,730


1,125,914


1,224,773


910,977


923,453

Total deposits
9,396,429

 
9,512,163

 
9,489,144

 
8,541,540

 
8,146,909

Deposits held for sale
106,409

 
50,312

 

 

 

Short-term borrowings
227,010


131,139


229,890


131,240


324,691

Other borrowings
274,905


277,563


258,708


276,118


285,011

Accrued expenses and other liabilities
78,078


83,562


68,431


55,460


62,671

Total Liabilities
10,082,831

 
10,054,739

 
10,046,173

 
9,004,358

 
8,819,282

Stockholders' Equity









Preferred equity




938


938


938

Common stockholders' equity
1,325,175

 
1,280,393

 
1,254,809

 
1,050,567

 
990,519

Total Equity
1,325,175

 
1,280,393

 
1,255,747

 
1,051,505

 
991,457

Total Liabilities and Equity
$
11,408,006

 
$
11,335,132

 
$
11,301,920

 
$
10,055,863

 
$
9,810,739







HEARTLAND FINANCIAL USA, INC
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
 
For the Quarter Ended
 
For the Year Ended
 
December 31,
 
December 31,
 
2018
 
2017
 
2018
 
2017
Average Balances







Assets
$
11,371,247


$
9,807,621


$
10,772,297


$
9,009,625

Loans, net of unearned
7,436,497


6,343,923


7,140,239


5,847,061

Deposits
9,596,807


8,293,006


9,104,278


7,590,232

Earning assets
10,225,409


8,891,432


9,718,106


8,181,914

Interest bearing liabilities
6,557,185


5,663,816


6,253,586


5,426,725

Common stockholders' equity
1,290,691


986,026


1,177,346


871,683

Total stockholders' equity
1,290,691


986,964


1,177,955


872,707

Tangible common stockholders' equity(1)
849,851


713,018


790,788


657,020









Key Performance Ratios







Annualized return on average assets
1.12
%

0.55
%

1.09
%

0.83
%
Annualized return on average common equity (GAAP)
9.88
%

5.50
%

9.93
%

8.63
%
Annualized return on average tangible common equity (non-GAAP)(2)
15.00
%

7.60
%

14.79
%

11.45
%
Annualized ratio of net charge-offs to average loans
0.48
%

0.28
%

0.25
%

0.24
%
Annualized net interest margin (GAAP)
4.28
%
 
4.14
%
 
4.26
%
 
4.04
%
Annualized net interest margin, fully tax-equivalent (non-GAAP)(3)
4.34
%
 
4.30
%
 
4.32
%
 
4.22
%
Efficiency ratio, fully tax-equivalent (4)
59.37
%
 
62.26
%
 
63.54
%
 
65.40
%
 
Reconciliation of Return on Average Tangible Common Equity (non-GAAP)(5)
 
 
 
 
 
 
 
Net income available to common shareholders (GAAP)
$
32,141

 
$
13,659

 
$
116,959

 
$
75,226

 
 
 
 
 
 
 
 
Average common stockholders' equity (GAAP)
$
1,290,691

 
$
986,026

 
$
1,177,346

 
$
871,683

    Less average goodwill
391,668

 
236,615

 
340,352

 
184,554

    Less average core deposit intangibles and customer relationship
intangibles, net
49,172

 
36,393

 
46,206

 
30,109

Average tangible common equity (non-GAAP)
$
849,851

 
$
713,018

 
$
790,788

 
$
657,020

Annualized return on average common equity (GAAP)
9.88
%
 
5.50
%
 
9.93
%
 
8.63
%
Annualized return on average tangible common equity (non-GAAP)
15.00
%
 
7.60
%
 
14.79
%
 
11.45
%
 
 
 
 
 
 
 
 
Reconciliation of Annualized Net Interest Margin,
Fully Tax-Equivalent (non-GAAP)
(6)
 
 
 
 
 
 
 
Net Interest Income (GAAP)
$
110,283

 
$
92,856

 
$
413,954

 
$
330,308

    Plus tax-equivalent adjustment(7)
1,565

 
3,558

 
6,228

 
15,139

Net interest income - tax-equivalent (non-GAAP)
$
111,848

 
$
96,414

 
$
420,182

 
$
345,447

 
 
 
 
 
 
 
 
Average earning assets
$
10,225,409

 
$
8,891,432

 
$
9,718,106

 
$
8,181,914

 
 
 
 
 
 
 
 
Annualized net interest margin (GAAP)
4.28
%
 
4.14
%
 
4.26
%
 
4.04
%
Annualized net interest margin, fully tax-equivalent (non-GAAP)
4.34
%
 
4.30
%
 
4.32
%
 
4.22
%

(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
 
12/31/2018
 
9/30/2018
 
6/30/2018
 
3/31/2018
 
12/31/2017
Average Balances
 
 
 
 
 
 
 
 
 
Assets
$
11,371,247

 
$
11,291,289

 
$
10,643,306

 
$
9,759,936

 
$
9,807,621

Loans, net of unearned
7,436,497

 
7,462,176

 
7,123,182

 
6,525,553

 
6,343,923

Deposits
9,596,807

 
9,530,743

 
9,018,945

 
8,251,140

 
8,293,006

Earning assets
10,225,409

 
10,154,591

 
9,614,800

 
8,857,801

 
8,891,432

Interest bearing liabilities
6,557,185

 
6,544,949

 
6,205,187

 
5,694,337

 
5,663,816

Common stockholders' equity
1,290,691

 
1,263,226

 
1,139,876

 
1,011,580

 
986,026

Total stockholders' equity
1,290,691

 
1,263,795

 
1,140,814

 
1,012,518

 
986,964

Tangible common stockholders' equity(1)
849,851

 
819,966

 
767,732

 
723,898

 
713,018

 
 
 
 
 
 
 
 
 
 
Key Performance Ratios
 
 
 
 
 
 
 
 
 
Annualized return on average assets
1.12
%
 
1.18
%
 
1.05
%
 
0.97
%
 
0.55
%
Annualized return on average common equity (GAAP)
9.88
%
 
10.58
%
 
9.81
%
 
9.32
%
 
5.50
%
Annualized return on average tangible common equity (non-GAAP)(2)
15.00
%
 
16.30
%
 
14.56
%
 
13.03
%
 
7.60
%
Annualized ratio of net charge-offs to average loans
0.48
%
 
0.28
%
 
0.12
%
 
0.08
%
 
0.28
%
Annualized net interest margin (GAAP)
4.28
%
 
4.32
%
 
4.23
%
 
4.19
%
 
4.14
%
Annualized net interest margin, fully tax-equivalent (non-GAAP)(3)
4.34
%
 
4.38
%
 
4.30
%
 
4.26
%
 
4.30
%
Efficiency ratio, fully tax-equivalent(4)
59.37
%
 
62.40
%
 
65.04
%
 
68.21
%
 
62.26
%
 
 
 
 
 
 
 
 
 
 
Reconciliation of Return on Average Tangible Common Equity (non-GAAP)(5)
 
 
 
 
 
 
 
 
 
Net income available to common shareholders (GAAP)
$
32,141

 
$
33,697

 
$
27,866

 
$
23,255

 
$
13,659

 
 
 
 
 
 
 
 
 
 
Average common stockholders' equity (GAAP)
$
1,290,691

 
$
1,263,226

 
$
1,139,876

 
$
1,011,580

 
$
986,026

    Less average goodwill
391,668

 
391,668

 
325,781

 
250,172

 
236,615

    Less average core deposit intangibles and customer relationship
intangibles, net
49,172

 
51,592

 
46,363

 
37,510

 
36,393

Average tangible common equity (non-GAAP)
$
849,851

 
$
819,966

 
$
767,732

 
$
723,898

 
$
713,018

Annualized return on average common equity (GAAP)
9.88
%
 
10.58
%
 
9.81
%
 
9.32
%
 
5.50
%
Annualized return on average tangible common equity (non-GAAP)
15.00
%
 
16.30
%
 
14.56
%
 
13.03
%
 
7.60
%
 
 
 
 
 
 
 
 
 
 
Reconciliation of Annualized Net Interest Margin, Fully Tax-Equivalent (non-GAAP)(6)
 
 
 
 
 
 
 
 
 
Net Interest Income (GAAP)
$
110,283

 
$
110,678

 
$
101,409

 
$
91,584

 
$
92,856

    Plus tax-equivalent adjustment(7)
1,565

 
1,544

 
1,575

 
1,544

 
3,558

Net interest income, fully tax-equivalent (non-GAAP)
$
111,848

 
$
112,222

 
$
102,984

 
$
93,128

 
$
96,414

 
 
 
 
 
 
 
 
 
 
Average earning assets
$
10,225,409

 
$
10,154,591

 
$
9,614,800

 
$
8,857,801

 
$
8,891,432

 
 
 
 
 
 
 
 
 
 
Annualized net interest margin (GAAP)
4.28
%
 
4.32
%
 
4.23
%
 
4.19
%
 
4.14
%
Annualized net interest margin, fully tax-equivalent (non-GAAP)
4.34
%
 
4.38
%
 
4.30
%
 
4.26
%
 
4.30
%
 
 
 
 
 
 
 
 
 
 
(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
 
For the Year Ended
 
December 31,
 
December 31,
Reconciliation of Non-GAAP Measure-Efficiency Ratio(1)
2018
 
2017
 
2018
 
2017
Net interest income
$
110,283


$
92,856


$
413,954


$
330,308

Tax-equivalent adjustment(2)
1,565


3,558


6,228


15,139

Fully tax-equivalent net interest income
111,848

 
96,414

 
420,182

 
345,447

Noninterest income
27,045


25,528


109,160


102,022

Securities gains, net
(48
)

(1,420
)

(1,085
)

(6,973
)
Unrealized gain/loss on equity securities, net
(115
)
 

 
(212
)
 

Gain on extinguishment of debt

 
(1,280
)
 

 
(1,280
)
Adjusted income
$
138,730

 
$
119,242

 
$
528,045

 
$
439,216













Total noninterest expenses
$
88,821


$
77,878


$
353,888


$
297,675

Less:










Core deposit intangibles and customer relationship intangibles amortization
2,592


1,825


9,355


6,077

Partnership investment in tax credit projects
3,895


984


4,233


1,860

(Gain)/loss on sales/valuations of assets, net
(35
)

833


2,208


2,475

  Restructuring expenses

 

 
2,564

 

Adjusted noninterest expenses
$
82,369

 
$
74,236

 
$
335,528

 
$
287,263









Efficiency ratio, fully tax-equivalent (non-GAAP)
59.37
%

62.26
%

63.54
%

65.40
%

Reconciliation of Non-GAAP Measure-Efficiency Ratio(1)
For the Quarter Ended
12/31/2018

9/30/2018

6/30/2018

3/31/2018

12/31/2017
Net interest income
$
110,283


$
110,678


$
101,409


$
91,584


$
92,856

Tax-equivalent adjustment(2)
1,565


1,544


1,575


1,544


3,558

Fully tax-equivalent net interest income
111,848

 
112,222

 
102,984

 
93,128

 
96,414

Noninterest income
27,045


29,765


27,634


24,716


25,528

Securities (gains)/losses, net
(48
)

145


259


(1,441
)

(1,420
)
Unrealized (gain)/loss on equity securities, net
(115
)
 
(54
)
 
(71
)
 
28

 

Gain on extinguishment of debt

 

 

 

 
(1,280
)
Adjusted income
$
138,730

 
$
142,078

 
$
130,806

 
$
116,431

 
$
119,242

 









Total noninterest expenses
$
88,821


$
92,539


$
88,882


$
83,646


$
77,878

Less:









Core deposit intangibles and customer relationship intangibles amortization
2,592


2,626


2,274


1,863


1,825

Partnership investment in tax credit projects
3,895


338






984

(Gain)/loss on sales/valuation of assets, net
(35
)

912


1,528


(197
)

833

Restructuring expenses

 

 

 
2,564

 

Adjusted noninterest expenses
$
82,369

 
$
88,663

 
$
85,080

 
$
79,416

 
$
74,236

 
 
 
 
 
 
 
 
 
 
Efficiency ratio, fully tax-equivalent (non-GAAP)
59.37
%
 
62.40
%
 
65.04
%
 
68.21
%
 
62.26
%
 
 
 
 
 
 
 
 
 
 
(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

12/31/2018

9/30/2018

6/30/2018

3/31/2018

12/31/2017
Common Share Data









Book value per common share
$
38.44


$
37.14


$
36.44


$
33.81


$
33.07

Tangible book value per common share (non-GAAP)(1)
$
25.70


$
24.33


$
23.53


$
23.79


$
23.99

Common shares outstanding, net of treasury stock
34,477,499


34,473,029


34,438,445


31,068,239


29,953,356

Tangible common equity ratio (non-GAAP)(2)
8.08
%

7.70
%

7.46
%

7.59
%

7.53
%
 
 
 
 
 
 
 
 
 
 
Reconciliation of Tangible Book Value Per Common Share (non-GAAP)(3)
 
 
 
 
 
 
 
 
 
Common stockholders' equity (GAAP)
$
1,325,175

 
$
1,280,393

 
$
1,254,809

 
$
1,050,567

 
$
990,518

    Less goodwill
391,668

 
391,668

 
391,668

 
270,305

 
236,615

    Less core deposit intangibles and customer relationship
intangibles, net
47,479

 
50,071

 
52,698

 
41,063

 
35,203

Tangible common stockholders' equity (non-GAAP)
$
886,028

 
$
838,654

 
$
810,443

 
$
739,199

 
$
718,700

 
 
 
 
 
 
 
 
 
 
Common shares outstanding, net of treasury stock
34,477,499

 
34,473,029

 
34,438,445

 
31,068,239

 
29,953,356

Common stockholders' equity (book value) per share (GAAP)
$
38.44

 
$
37.14

 
$
36.44

 
$
33.81

 
$
33.07

Tangible book value per common share (non-GAAP)
$
25.70

 
$
24.33

 
$
23.53

 
$
23.79

 
$
23.99

 
 
 
 
 
 
 
 
 
 
Reconciliation of Tangible Common Equity Ratio (non-GAAP)(4)
 
 
 
 
 
 
 
 
 
Total assets (GAAP)
$
11,408,006

 
$
11,335,132

 
$
11,301,920

 
$
10,055,863

 
$
9,810,739

    Less goodwill
391,668

 
391,668

 
391,668

 
270,305

 
236,615

    Less core deposit intangibles and customer relationship
intangibles, net
47,479

 
50,071

 
52,698

 
41,063

 
35,203

Total tangible assets (non-GAAP)
$
10,968,859

 
$
10,893,393

 
$
10,857,554

 
$
9,744,495

 
$
9,538,921

Tangible common equity ratio (non-GAAP)
8.08
%
 
7.70
%
 
7.46
%
 
7.59
%
 
7.53
%
 
 
 
 
 
 
 
 
 
 
Loan Data









Loans held to maturity:









Commercial and commercial real estate
$
5,731,712


$
5,610,953


$
5,721,138


$
5,129,777


$
4,809,875

Residential mortgage
673,603


676,941


683,051


624,725


624,279

Agricultural and agricultural real estate
565,408


574,048


562,353


518,386


511,588

Consumer
440,158


506,181


512,899


474,929


447,484

Unearned discount and deferred loan fees
(3,184
)

(2,630
)

(1,744
)

(1,802
)

(1,762
)
Total loans held to maturity
$
7,407,697


$
7,365,493


$
7,477,697


$
6,746,015


$
6,391,464











Other Selected Trend Information














Effective tax rate
17.22
%

20.99
%

21.09
%

18.04
%

61.13
%
Full time equivalent employees
2,045


2,124


2,216


2,022


2,008

Total residential mortgage loan applications
$
107,892


$
298,602


$
341,978


$
234,825


$
232,946

Residential mortgage loans originated
$
124,600


$
262,821


$
225,563


$
149,768


$
185,580

Residential mortgage loans sold
$
126,180


$
238,684


$
201,818


$
127,963


$
168,527

Residential mortgage loan servicing portfolio
$
4,095,025


$
4,156,921