Part
I
|
|||
Item
1.
|
Financial
Statements
|
||
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
||
Item
3.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
||
Item
4.
|
Controls
and Procedures
|
||
Part
II
|
|||
Item
1.
|
Legal
Proceedings
|
||
Item
1A.
|
Risk
Factors
|
||
Item
2.
|
Unregistered
Sales of Issuer Securities and Use of Proceeds
|
||
Item
3.
|
Defaults
Upon Senior Securities
|
||
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
||
Item
5.
|
Other
Information
|
||
Item
6.
|
Exhibits
|
||
Form
10-Q Signature Page
|
HEARTLAND
FINANCIAL USA, INC.
CONSOLIDATED
BALANCE SHEETS
(Dollars
in thousands, except per share data)
|
||||||||
September
30, 2008
|
December
31, 2007
|
|||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
Cash
and due from banks
|
$
|
30,537
|
$
|
46,468
|
||||
Federal
funds sold and other short-term investments
|
36,537
|
364
|
||||||
Cash
and cash equivalents
|
67,074
|
46,832
|
||||||
Securities:
|
||||||||
Trading, at fair
value
|
1,962
|
1,888
|
||||||
Available for sale, at fair
value (cost of $741,243 at September 30, 2008, and $672,499 at December
31, 2007)
|
733,820
|
682,383
|
||||||
Held to maturity, at cost (fair
value of $23,574 at September 30, 2008, and $5,754 at December 31,
2007)
|
24,361
|
5,678
|
||||||
Loans
held for sale
|
9,812
|
12,679
|
||||||
Gross
loans and leases:
|
||||||||
Held to maturity
|
2,364,259
|
2,280,167
|
||||||
Allowance for loan and lease
losses
|
(34,845
|
)
|
(32,993
|
)
|
||||
Loans
and leases, net
|
2,329,414
|
2,247,174
|
||||||
Premises,
furniture and equipment, net
|
120,225
|
120,285
|
||||||
Other
real estate, net
|
9,387
|
2,195
|
||||||
Goodwill
|
40,207
|
40,207
|
||||||
Other
intangible assets, net
|
8,332
|
8,369
|
||||||
Cash
surrender value on life insurance
|
55,684
|
55,532
|
||||||
Other
assets
|
45,704
|
40,904
|
||||||
TOTAL
ASSETS
|
$
|
3,445,982
|
$
|
3,264,126
|
||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||
LIABILITIES:
|
||||||||
Deposits:
|
||||||||
Demand
|
$
|
373,193
|
$
|
381,499
|
||||
Savings
|
1,042,364
|
855,036
|
||||||
Time
|
1,152,350
|
1,139,764
|
||||||
Total
deposits
|
2,567,907
|
2,376,299
|
||||||
Short-term
borrowings
|
176,543
|
354,146
|
||||||
Other
borrowings
|
440,146
|
263,607
|
||||||
Accrued
expenses and other liabilities
|
36,074
|
39,474
|
||||||
TOTAL
LIABILITIES
|
3,220,670
|
3,033,526
|
||||||
STOCKHOLDERS’
EQUITY:
|
||||||||
Preferred
stock (par value $1 per share; authorized, 184,000 shares; none issued or
outstanding)
|
-
|
-
|
||||||
Series
A Junior participating preferred stock (par value $1 per share;
authorized, 16,000 shares; none issued or outstanding)
|
-
|
-
|
||||||
Common
stock (par value $1 per share; authorized, 20,000,000 shares; issued
16,611,671 shares at September 30, 2008, and December 31,
2007)
|
16,612
|
16,612
|
||||||
Capital
surplus
|
37,701
|
37,269
|
||||||
Retained
earnings
|
182,227
|
173,891
|
||||||
Accumulated
other comprehensive income (loss)
|
(4,043
|
)
|
6,506
|
|||||
Treasury
stock at cost (358,780 shares at September 30, 2008, and 184,655 shares at
December 31, 2007)
|
(7,185
|
)
|
(3,678
|
)
|
||||
TOTAL
STOCKHOLDERS’ EQUITY
|
225,312
|
230,600
|
||||||
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
3,445,982
|
$
|
3,264,126
|
||||
See
accompanying notes to consolidated financial
statements.
|
HEARTLAND
FINANCIAL USA, INC.
|
||||||||||||||||
CONSOLIDATED
STATEMENTS OF INCOME (Unaudited)
|
||||||||||||||||
(Dollars
in thousands, except per share data)
|
||||||||||||||||
Quarter
Ended
|
Nine
Months Ended
|
|||||||||||||||
Sept.
30, 2008
|
Sept.
30, 2007
|
Sept.
30, 2008
|
Sept.
30, 2007
|
|||||||||||||
INTEREST
INCOME:
|
||||||||||||||||
Interest
and fees on loans and leases
|
$
|
40,990
|
$
|
47,406
|
$
|
124,444
|
$
|
140,712
|
||||||||
Interest
on securities:
|
||||||||||||||||
Taxable
|
8,228
|
5,446
|
22,728
|
16,010
|
||||||||||||
Nontaxable
|
1,670
|
1,513
|
4,996
|
4,414
|
||||||||||||
Interest
on federal funds sold and other short-term investments
|
85
|
310
|
267
|
310
|
||||||||||||
Interest
on interest bearing deposits in other financial
institutions
|
3
|
2
|
10
|
20
|
||||||||||||
TOTAL
INTEREST INCOME
|
50,976
|
54,677
|
152,445
|
161,466
|
||||||||||||
INTEREST
EXPENSE:
|
||||||||||||||||
Interest
on deposits
|
15,622
|
20,477
|
48,375
|
58,325
|
||||||||||||
Interest
on short-term borrowings
|
776
|
2,764
|
4,049
|
10,545
|
||||||||||||
Interest
on other borrowings
|
4,692
|
4,199
|
13,562
|
10,762
|
||||||||||||
TOTAL
INTEREST EXPENSE
|
21,090
|
27,440
|
65,986
|
79,632
|
||||||||||||
NET
INTEREST INCOME
|
29,886
|
27,237
|
86,459
|
81,834
|
||||||||||||
Provision
for loan and lease losses
|
7,083
|
575
|
14,213
|
6,769
|
||||||||||||
NET
INTEREST INCOME AFTER PROVISION FOR LOAN AND LEASE LOSSES
|
22,803
|
26,662
|
72,246
|
75,065
|
||||||||||||
NONINTEREST
INCOME:
|
||||||||||||||||
Service
charges and fees, net
|
3,125
|
2,861
|
8,620
|
8,287
|
||||||||||||
Loan
servicing income
|
1,094
|
1,068
|
3,585
|
3,103
|
||||||||||||
Trust
fees
|
2,070
|
2,089
|
6,159
|
6,265
|
||||||||||||
Brokerage
and insurance commissions
|
942
|
820
|
2,717
|
2,158
|
||||||||||||
Securities
gains, net
|
5
|
31
|
1,015
|
303
|
||||||||||||
Gain
(loss) on trading account securities, net
|
(33
|
)
|
(7
|
)
|
(467
|
)
|
80
|
|||||||||
Impairment
loss on securities
|
(4,688
|
)
|
-
|
(4,804
|
)
|
-
|
||||||||||
Gains
on sale of loans
|
295
|
604
|
1,279
|
2,051
|
||||||||||||
Income
(loss) on bank owned life insurance
|
(247
|
)
|
595
|
596
|
1,212
|
|||||||||||
Gain
on sale of merchant credit card services
|
5,200
|
-
|
5,200
|
-
|
||||||||||||
Other
noninterest income
|
117
|
(145
|
)
|
772
|
161
|
|||||||||||
TOTAL
NONINTEREST INCOME
|
7,880
|
7,916
|
24,672
|
23,620
|
||||||||||||
NONINTEREST
EXPENSES:
|
||||||||||||||||
Salaries
and employee benefits
|
15,000
|
14,301
|
44,459
|
42,680
|
||||||||||||
Occupancy
|
2,262
|
2,004
|
6,799
|
5,941
|
||||||||||||
Furniture
and equipment
|
1,662
|
1,669
|
5,201
|
5,124
|
||||||||||||
Outside
services
|
3,096
|
2,374
|
8,254
|
7,011
|
||||||||||||
Advertising
|
1,012
|
886
|
2,853
|
2,694
|
||||||||||||
Intangible
assets amortization
|
236
|
241
|
708
|
652
|
||||||||||||
Other
noninterest expenses
|
3,392
|
3,272
|
9,588
|
9,970
|
||||||||||||
TOTAL
NONINTEREST EXPENSES
|
26,660
|
24,747
|
77,862
|
74,072
|
||||||||||||
INCOME
BEFORE INCOME TAXES
|
4,023
|
9,831
|
19,056
|
24,613
|
||||||||||||
Income
taxes
|
1,018
|
2,906
|
5,081
|
7,403
|
||||||||||||
INCOME
FROM CONTINUING OPERATIONS
|
3,005
|
6,925
|
13,975
|
17,210
|
||||||||||||
Discontinued
operations:
|
||||||||||||||||
Income from discontinued
operations before income taxes
|
-
|
-
|
-
|
2,756
|
||||||||||||
Income taxes
|
-
|
-
|
-
|
1,085
|
||||||||||||
INCOME
FROM DISCONTINUED OPERATIONS
|
-
|
-
|
-
|
1,671
|
||||||||||||
NET
INCOME
|
$
|
3,005
|
$
|
6,925
|
$
|
13,975
|
$
|
18,881
|
||||||||
EARNINGS
PER COMMON SHARE – BASIC
|
$
|
0.18
|
$
|
0.42
|
$
|
0.86
|
$
|
1.15
|
||||||||
EARNINGS
PER COMMON SHARE – DILUTED
|
$
|
0.18
|
$
|
0.42
|
$
|
0.85
|
$
|
1.14
|
||||||||
EARNINGS
PER COMMON SHARE FROM CONTINUING OPERATIONS – BASIC
|
$
|
0.18
|
$
|
0.42
|
$
|
0.86
|
$
|
1.04
|
||||||||
EARNINGS
PER COMMON SHARE FROM CONTINUING OPERATIONS– DILUTED
|
$
|
0.18
|
$
|
0.42
|
$
|
0.85
|
$
|
1.04
|
||||||||
CASH
DIVIDENDS DECLARED PER COMMON SHARE
|
$
|
0.10
|
$
|
0.09
|
$
|
0.30
|
$
|
0.27
|
||||||||
See
accompanying notes to consolidated financial
statements.
|
HEARTLAND
FINANCIAL USA, INC.
CONSOLIDATED
STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
AND
COMPREHENSIVE INCOME (Unaudited)
(Dollars
in thousands, except per share data)
|
||||||||||||||||||||||||
Common
Stock
|
Capital
Surplus
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income
(Loss)
|
Treasury
Stock
|
Total
|
|||||||||||||||||||
Balance
at January 1, 2007
|
$
|
16,572
|
$
|
37,963
|
$
|
154,308
|
$
|
868
|
$
|
-
|
$
|
209,711
|
||||||||||||
Net
income
|
18,881
|
18,881
|
||||||||||||||||||||||
Unrealized
gain (loss) on securities available for sale arising during the
period
|
2,184
|
2,184
|
||||||||||||||||||||||
Unrealized
gain (loss) on derivatives arising during the period
|
235
|
235
|
||||||||||||||||||||||
Reclassification
adjustment for net security gains realized in net income
|
|
(303
|
)
|
(303
|
)
|
|||||||||||||||||||
Income
taxes
|
(786
|
)
|
(786
|
)
|
||||||||||||||||||||
Comprehensive
income
|
20,211
|
|||||||||||||||||||||||
Cash
dividends declared:
|
||||||||||||||||||||||||
Common, $0.27 per
share
|
(4,411
|
)
|
(4,411
|
)
|
||||||||||||||||||||
Purchase
of 303,786 shares of common stock
|
(7,832
|
)
|
(7,832
|
)
|
||||||||||||||||||||
Issuance
of 184,360 shares of common stock
|
40
|
(1,801
|
)
|
5,174
|
3,413
|
|||||||||||||||||||
Commitments
to issue common stock
|
1,183
|
1,183
|
||||||||||||||||||||||
Balance
at September 30, 2007
|
$
|
16,612
|
$
|
37,345
|
$
|
168,778
|
$
|
2,198
|
$
|
(2,658
|
)
|
$
|
222,275
|
|||||||||||
Balance
at December 31, 2007
|
$
|
16,612
|
$
|
37,269
|
$
|
173,891
|
$
|
6,506
|
$
|
(3,678
|
)
|
$
|
230,600
|
|||||||||||
Cumulative
effect from adoption of EITF 06-4
|
(791
|
)
|
(791
|
)
|
||||||||||||||||||||
Balance
at January 1, 2008
|
16,612
|
37,269
|
173,100
|
6,506
|
(3,678
|
)
|
229,809
|
|||||||||||||||||
Net
income
|
13,975
|
13,975
|
||||||||||||||||||||||
Unrealized
gain (loss) on securities available for sale arising during the
period
|
(21,096
|
)
|
(21,096
|
)
|
||||||||||||||||||||
Unrealized
gain (loss) on derivatives arising during the period
|
563
|
563
|
||||||||||||||||||||||
Reclassification
adjustment for net security losses realized in net income
|
3,789
|
3,789
|
||||||||||||||||||||||
Income
taxes
|
6,195
|
6,195
|
||||||||||||||||||||||
Comprehensive
income
|
3,426
|
|||||||||||||||||||||||
Cash
dividends declared:
|
||||||||||||||||||||||||
Common, $0.30 per
share
|
(4,848
|
)
|
(4,848
|
)
|
||||||||||||||||||||
Purchase
of 306,864 shares of common stock
|
(6,126
|
)
|
(6,126
|
)
|
||||||||||||||||||||
Issuance
of 132,739 shares of common stock
|
(444
|
)
|
2,619
|
2,175
|
||||||||||||||||||||
Commitments
to issue common stock
|
876
|
876
|
||||||||||||||||||||||
Balance
at September 30, 2008
|
$
|
16,612
|
$
|
37,701
|
$
|
182,227
|
$
|
(4,043
|
)
|
$
|
(7,185
|
)
|
$
|
225,312
|
HEARTLAND
FINANCIAL USA, INC.
CONSOLIDATED
STATEMENTS OF CASH FLOWS (Unaudited)
(Dollars
in thousands, except per share data)
|
||||||||
Nine
Months Ended
|
||||||||
September
30, 2008
|
September
30, 2007
|
|||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net
income
|
$
|
13,975
|
$
|
18,881
|
||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
Depreciation and
amortization
|
7,028
|
6,635
|
||||||
Provision for loan and lease
losses
|
14,213
|
6,769
|
||||||
Net amortization of premium on
securities
|
(330
|
)
|
143
|
|||||
Securities gains,
net
|
(1,015
|
)
|
(303
|
)
|
||||
Increase in trading account
securities
|
(74
|
)
|
(471
|
)
|
||||
Loss on impairment of
securities
|
4,804
|
-
|
||||||
Stock-based
compensation
|
876
|
1,183
|
||||||
Loans originated for
sale
|
(203,758
|
)
|
(233,626
|
)
|
||||
Proceeds on sales of
loans
|
207,904
|
241,460
|
||||||
Net gains on sales of
loans
|
(1,279
|
)
|
(2,051
|
)
|
||||
(Increase) decrease in accrued
interest receivable
|
1,538
|
(422
|
)
|
|||||
Decrease in accrued interest
payable
|
(3,626
|
)
|
(745
|
)
|
||||
Other, net
|
(12,847
|
)
|
(16,702
|
)
|
||||
Net
cash provided by operating activities – continuing
operations
|
27,409
|
20,751
|
||||||
Net
cash provided by operating activities – discontinued
operations
|
-
|
10
|
||||||
NET
CASH PROVIDED BY OPERATING ACTIVITIES
|
27,409
|
20,761
|
||||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Proceeds
from the sale of securities available for sale
|
131,482
|
36,897
|
||||||
Proceeds
from the maturity of and principal paydowns on securities available for
sale
|
133,869
|
118,820
|
||||||
Proceeds
from the maturity of and principal paydowns on securities held to
maturity
|
121
|
24
|
||||||
Purchase
of securities available for sale
|
(337,576
|
)
|
(183,024
|
)
|
||||
Purchase
of securities held to maturity
|
(18,782
|
)
|
(1,157
|
)
|
||||
Net
increase in loans and leases
|
(92,645
|
)
|
(121,548
|
)
|
||||
Purchase
of bank owned life insurance policies
|
-
|
(20,500
|
)
|
|||||
Capital
expenditures
|
(6,544
|
)
|
(16,925
|
)
|
||||
Proceeds
on sale of OREO and other repossessed assets
|
1,349
|
359
|
||||||
Net
cash used by investing activities – continuing operations
|
(188,726
|
)
|
(187,054
|
)
|
||||
Net
cash provided by investing activities – discontinued
operations
|
-
|
22,631
|
||||||
NET
CASH USED BY INVESTING ACTIVITIES
|
(188,726
|
)
|
(164,423
|
)
|
||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Net
increase in demand deposits and savings accounts
|
179,022
|
38,824
|
||||||
Net
increase in time deposit accounts
|
12,586
|
101,509
|
||||||
Net
decrease in short-term borrowings
|
(177,603
|
)
|
(17,061
|
)
|
||||
Proceeds
from other borrowings
|
221,972
|
62,114
|
||||||
Repayments
of other borrowings
|
(45,433
|
)
|
(17,921
|
)
|
||||
Purchase
of treasury stock
|
(6,126
|
)
|
(7,832
|
)
|
||||
Proceeds
from issuance of common stock
|
1,723
|
2,568
|
||||||
Excess
tax benefits on exercised stock options
|
266
|
845
|
||||||
Dividends
paid
|
(4,848
|
)
|
(4,411
|
)
|
||||
Net
cash provided by financing activities – continuing
operations
|
181,559
|
158,635
|
||||||
Net
cash used by financing activities – discontinued
operations
|
-
|
(32,525
|
)
|
|||||
NET
CASH PROVIDED BY FINANCING ACTIVITIES
|
181,559
|
126,110
|
||||||
Net
increase (decrease) in cash and cash equivalents
|
20,242
|
(17,552
|
)
|
|||||
Cash
and cash equivalents at beginning of year
|
46,832
|
49,143
|
||||||
CASH
AND CASH EQUIVALENTS AT END OF PERIOD
|
$
|
67,074
|
$
|
31,591
|
||||
Supplemental
disclosures:
|
||||||||
Cash paid for income/franchise
taxes
|
$
|
7,646
|
$
|
16,668
|
||||
Cash paid for
interest
|
$
|
69,612
|
$
|
80,377
|
||||
Securities transferred from
available for sale to trading
|
$
|
541
|
$
|
-
|
||||
Acquisition:
|
||||||||
Net assets
acquired
|
$
|
-
|
$
|
650
|
||||
Cash paid for
acquisition
|
$
|
-
|
$
|
(50
|
)
|
|||
Cash acquired
|
-
|
-
|
||||||
Net cash paid for
acquisition
|
$
|
-
|
$
|
(50
|
)
|
|||
See
accompanying notes to consolidated financial
statements.
|
Three
Months Ended
|
||||||||
(Dollars
and numbers in thousands, except per share data)
|
Sept.
30, 2008
|
Sept.
30, 2007
|
||||||
Net
income
|
$
|
3,005
|
$
|
6,925
|
||||
Weighted
average common shares outstanding for basic earnings per
share
|
16,264
|
16,447
|
||||||
Assumed
incremental common shares issued upon exercise of stock
options
|
91
|
97
|
||||||
Weighted
average common shares for diluted earnings per share
|
16,355
|
16,544
|
||||||
Earnings
per common share – basic
|
$
|
0.18
|
$
|
0.42
|
||||
Earnings
per common share – diluted
|
$
|
0.18
|
$
|
0.42
|
Nine
Months Ended
|
||||||||
(Dollars
and numbers in thousands, except per share data)
|
Sept.
30, 2008
|
Sept.
30, 2007
|
||||||
Income
from continuing operations
|
$
|
13,975
|
$
|
17,210
|
||||
Income
from discontinued operations
|
-
|
1,671
|
||||||
Net
income
|
$
|
13,975
|
$
|
18,881
|
||||
Weighted
average common shares outstanding for basic earnings per
share
|
16,315
|
16,487
|
||||||
Assumed
incremental common shares issued upon exercise of stock
options
|
77
|
133
|
||||||
Weighted
average common shares for diluted earnings per share
|
16,392
|
16,620
|
||||||
Earnings
per common share – basic
|
$
|
0.86
|
$
|
1.15
|
||||
Earnings
per common share – diluted
|
$
|
0.85
|
$
|
1.14
|
||||
Earnings
per common share from continuing operations – basic
|
$
|
0.86
|
$
|
1.04
|
||||
Earnings
per common share from continuing operations – diluted
|
$
|
0.85
|
$
|
1.04
|
||||
Earnings
per common share from discontinued operations – basic
|
$
|
-
|
$
|
0.10
|
||||
Earnings
per common share from discontinued operations – diluted
|
$
|
-
|
$
|
0.10
|
2008
|
2007
|
|||||||||||||||
Shares
|
Weighted-Average
Exercise Price
|
Shares
|
Weighted-Average
Exercise Price
|
|||||||||||||
Outstanding
at January 1
|
733,012
|
$
|
18.61
|
815,300
|
$
|
14.46
|
||||||||||
Granted
|
164,400
|
18.60
|
146,750
|
29.65
|
||||||||||||
Exercised
|
(98,549
|
)
|
11.56
|
(194,788
|
)
|
9.86
|
||||||||||
Forfeited
|
(16,000
|
)
|
24.96
|
(14,500
|
)
|
25.24
|
||||||||||
Outstanding
at September 30
|
782,863
|
$
|
19.36
|
752,762
|
$
|
18.40
|
||||||||||
Options
exercisable at September 30
|
277,713
|
$
|
13.60
|
300,554
|
$
|
11.60
|
||||||||||
Weighted-average
fair value of options granted during the nine-month periods ended
September 30
|
$
|
4.81
|
$
|
7.69
|
2008
|
2007
|
|||||||
Risk-free
interest rate
|
3.10 | % | 4.74 | % | ||||
Expected
option life
|
6.4
years
|
6.2
years
|
||||||
Expected
volatility
|
26.96 | % | 24.20 | % | ||||
Expected
dividends
|
1.99 | % | 1.25 | % |
September
30, 2008
|
December
31, 2007
|
|||||||||||||||
Gross
Carrying Amount
|
Accumulated
Amortization
|
Gross
Carrying Amount
|
Accumulated
Amortization
|
|||||||||||||
Amortized
intangible assets:
|
||||||||||||||||
Core deposit
intangibles
|
$
|
9,757
|
$
|
6,882
|
$
|
9,757
|
$
|
6,252
|
||||||||
Mortgage servicing
rights
|
7,641
|
3,058
|
6,505
|
2,592
|
||||||||||||
Customer relationship
intangible
|
1,177
|
303
|
1,177
|
226
|
||||||||||||
Total
|
$
|
18,575
|
$
|
10,243
|
$
|
17,439
|
$
|
9,070
|
||||||||
Unamortized
intangible assets
|
$
|
8,332
|
$
|
8,369
|
Core
Deposit
Intangibles
|
Mortgage
Servicing
Rights
|
Customer
Relationship
Intangible
|
Total
|
|||||||||||||
Three
months ending December 31, 2008
|
$
|
216
|
$
|
339
|
$
|
26
|
$
|
581
|
||||||||
Year
ending December 31,
|
||||||||||||||||
2009
|
748
|
1,212
|
102
|
2,062
|
||||||||||||
2010
|
465
|
1,010
|
100
|
1,575
|
||||||||||||
2011
|
450
|
808
|
99
|
1,357
|
||||||||||||
2012
|
421
|
607
|
55
|
1,083
|
||||||||||||
2013
|
405
|
404
|
45
|
854
|
||||||||||||
Thereafter
|
170
|
203
|
447
|
820
|
Total
Fair Value
Sept.
30, 2008
|
Level
1
|
Level
2
|
Level
3
|
|||||||||||||
Trading
securities
|
$
|
1,962
|
$
|
1,962
|
$
|
-
|
$
|
-
|
||||||||
Available-for-sale
securities
|
733,820
|
113,320
|
620,300
|
200
|
||||||||||||
Derivative
assets
|
1,244
|
-
|
1,244
|
-
|
||||||||||||
Total
assets at fair value
|
$
|
737,026
|
$
|
115,282
|
$
|
621,544
|
$
|
200
|
Fair
Value
|
|||
Balance
at January 1, 2008
|
$
|
200
|
|
Purchases
|
10,700
|
||
Redemptions
|
(10,700
|
)
|
|
Balance
at September 30, 2008
|
$
|
200
|
Carrying
Value at September 30, 2008
|
Nine
Months Ended Sept. 30, 2008
|
|||||||||||||||||||
Total
|
Level
1
|
Level
2
|
Level
3
|
Total
Losses
|
||||||||||||||||
Impaired
loans
|
$ | 23,890 | $ | - | $ | - | $ | 23,890 | $ | 4,147 |
*
|
Heartland
has continued to experience growth in more complex commercial loans as
compared to relatively lower-risk residential real estate
loans.
|
*
|
During
the last several years, Heartland has entered new geographical markets in
which it had little or no previous lending experience.
|
*
|
Heartland
has experienced an increase in net charge-offs and nonperforming loans
during the most recent quarters.
|
ANALYSIS
OF AVERAGE BALANCES, TAX EQUIVALENT YIELDS AND RATES1
For
the quarters ended September 30, 2008 and 2007
(Dollars
in thousands)
|
||||||||||||||||||||||
2008
|
2007
|
|||||||||||||||||||||
Average
Balance
|
Interest
|
Rate
|
Average
Balance
|
Interest
|
Rate
|
|||||||||||||||||
EARNING
ASSETS
|
||||||||||||||||||||||
Securities:
|
||||||||||||||||||||||
Taxable
|
$
|
622,376
|
$
|
8,228
|
5.26
|
%
|
$
|
474,366
|
$
|
5,446
|
4.55
|
%
|
||||||||||
Nontaxable1
|
153,996
|
2,441
|
6.31
|
136,834
|
2,271
|
6.58
|
||||||||||||||||
Total securities
|
776,372
|
10,669
|
5.47
|
611,200
|
7,717
|
5.01
|
||||||||||||||||
Interest
bearing deposits
|
654
|
3
|
1.82
|
764
|
2
|
1.04
|
||||||||||||||||
Federal
funds sold
|
18,419
|
85
|
1.84
|
24,180
|
310
|
5.09
|
||||||||||||||||
Loans
and leases:
|
||||||||||||||||||||||
Commercial and commercial real
estate1
|
1,651,002
|
26,910
|
6.48
|
1,609,044
|
31,757
|
7.83
|
||||||||||||||||
Residential
mortgage
|
223,267
|
3,570
|
6.36
|
239,447
|
4,069
|
6.74
|
||||||||||||||||
Agricultural and agricultural
real estate1
|
241,541
|
4,191
|
6.90
|
227,630
|
4,650
|
8.10
|
||||||||||||||||
Consumer
|
216,651
|
5,081
|
9.33
|
199,823
|
5,351
|
10.62
|
||||||||||||||||
Direct financing leases,
net
|
7,078
|
105
|
5.90
|
11,320
|
171
|
5.99
|
||||||||||||||||
Fees on loans
|
-
|
1,356
|
-
|
-
|
1,589
|
-
|
||||||||||||||||
Less: allowance for loan and
lease losses
|
(34,776
|
)
|
-
|
-
|
(32,647
|
)
|
-
|
-
|
||||||||||||||
Net loans and
leases
|
2,304,763
|
41,213
|
7.11
|
2,254,617
|
47,587
|
8.37
|
||||||||||||||||
Total earning
assets
|
3,100,208
|
$
|
51,970
|
6.67
|
%
|
2,890,761
|
$
|
55,616
|
7.63
|
%
|
||||||||||||
NONEARNING
ASSETS
|
298,991
|
285,954
|
||||||||||||||||||||
TOTAL
ASSETS
|
$
|
3,399,199
|
$
|
3,176,715
|
||||||||||||||||||
INTEREST
BEARING LIABILITIES
|
||||||||||||||||||||||
Interest
bearing deposits
|
||||||||||||||||||||||
Savings
|
$
|
981,108
|
$
|
4,777
|
1.94
|
%
|
$
|
850,988
|
$
|
6,021
|
2.81
|
%
|
||||||||||
Time, $100,000 and
over
|
374,170
|
3,527
|
3.75
|
305,748
|
3,848
|
4.99
|
||||||||||||||||
Other time
deposits
|
759,999
|
7,318
|
3.83
|
888,706
|
10,608
|
4.74
|
||||||||||||||||
Short-term
borrowings
|
184,800
|
776
|
1.67
|
243,820
|
2,764
|
4.50
|
||||||||||||||||
Other
borrowings
|
449,927
|
4,692
|
4.15
|
269,198
|
4,199
|
6.19
|
||||||||||||||||
Total interest bearing
liabilities
|
2,750,004
|
21,090
|
3.05
|
%
|
2,558,460
|
27,440
|
4.26
|
%
|
||||||||||||||
NONINTEREST
BEARING LIABILITIES
|
||||||||||||||||||||||
Noninterest
bearing deposits
|
384,711
|
369,716
|
||||||||||||||||||||
Accrued
interest and other liabilities
|
37,373
|
32,501
|
||||||||||||||||||||
Total noninterest bearing
liabilities
|
422,084
|
402,217
|
||||||||||||||||||||
STOCKHOLDERS’
EQUITY
|
227,111
|
216,038
|
||||||||||||||||||||
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
3,399,199
|
$
|
3,176,715
|
||||||||||||||||||
Net
interest income1
|
$
|
30,880
|
$
|
28,176
|
||||||||||||||||||
Net
interest spread1
|
3.62
|
%
|
3.38
|
%
|
||||||||||||||||||
Net
interest income to total earning assets1
|
3.96
|
%
|
3.87
|
%
|
||||||||||||||||||
Interest
bearing liabilities to earning assets
|
88.70
|
%
|
88.50
|
%
|
||||||||||||||||||
1
Tax equivalent basis is calculated using an effective tax rate of
35%.
|
ANALYSIS
OF AVERAGE BALANCES, TAX EQUIVALENT YIELDS AND RATES1
For
the nine months ended September 30, 2008 and 2007
(Dollars
in thousands)
|
||||||||||||||||||||||
2008
|
2007
|
|||||||||||||||||||||
Average
Balance
|
Interest
|
Rate
|
Average
Balance
|
Interest
|
Rate
|
|||||||||||||||||
EARNING
ASSETS
|
||||||||||||||||||||||
Securities:
|
||||||||||||||||||||||
Taxable
|
$
|
607,082
|
$
|
22,728
|
5.00
|
%
|
$
|
468,616
|
$
|
16,010
|
4.57
|
%
|
||||||||||
Nontaxable1
|
150,803
|
7,330
|
6.49
|
132,831
|
6,677
|
6.72
|
||||||||||||||||
Total securities
|
757,885
|
30,058
|
5.30
|
601,447
|
22,687
|
5.04
|
||||||||||||||||
Interest
bearing deposits
|
494
|
10
|
2.70
|
683
|
20
|
3.92
|
||||||||||||||||
Federal
funds sold
|
15,579
|
267
|
2.29
|
7,490
|
310
|
5.53
|
||||||||||||||||
Loans
and leases:
|
||||||||||||||||||||||
Commercial and commercial real
estate1
|
1,629,584
|
82,133
|
6.73
|
1,590,559
|
94,567
|
7.95
|
||||||||||||||||
Residential
mortgage
|
222,359
|
10,779
|
6.48
|
243,299
|
12,399
|
6.81
|
||||||||||||||||
Agricultural and agricultural
real estate1
|
236,537
|
12,855
|
7.26
|
225,606
|
13,728
|
8.14
|
||||||||||||||||
Consumer
|
207,116
|
14,909
|
9.62
|
196,110
|
15,482
|
10.55
|
||||||||||||||||
Direct financing leases,
net
|
7,926
|
353
|
5.95
|
12,553
|
560
|
5.96
|
||||||||||||||||
Fees on loans
|
-
|
3,966
|
-
|
-
|
4,500
|
-
|
||||||||||||||||
Less: allowance for loan and
lease losses
|
(33,504
|
)
|
-
|
-
|
(32,012
|
)
|
-
|
-
|
||||||||||||||
Net loans and
leases
|
2,270,018
|
124,995
|
7.36
|
2,236,115
|
141,236
|
8.44
|
||||||||||||||||
Total earning
assets
|
3,043,976
|
$
|
155,330
|
6.82
|
%
|
2,845,735
|
$
|
164,253
|
7.72
|
%
|
||||||||||||
NONEARNING
ASSETS
|
297,229
|
290,299
|
||||||||||||||||||||
TOTAL
ASSETS
|
$
|
3,341,205
|
$
|
3,136,034
|
||||||||||||||||||
INTEREST
BEARING LIABILITIES
|
||||||||||||||||||||||
Interest
bearing deposits
|
||||||||||||||||||||||
Savings
|
$
|
895,057
|
$
|
12,575
|
1.88
|
%
|
$
|
825,967
|
$
|
17,132
|
2.77
|
%
|
||||||||||
Time, $100,000 and
over
|
326,038
|
10,091
|
4.13
|
282,393
|
10,394
|
4.92
|
||||||||||||||||
Other time
deposits
|
821,894
|
25,709
|
4.18
|
878,808
|
30,799
|
4.69
|
||||||||||||||||
Short-term
borrowings
|
246,735
|
4,049
|
2.19
|
291,941
|
10,545
|
4.83
|
||||||||||||||||
Other
borrowings
|
410,427
|
13,562
|
4.41
|
234,186
|
10,762
|
6.14
|
||||||||||||||||
Total interest bearing
liabilities
|
2,700,151
|
65,986
|
3.26
|
%
|
2,513,295
|
79,632
|
4.24
|
%
|
||||||||||||||
NONINTEREST
BEARING LIABILITIES
|
||||||||||||||||||||||
Noninterest
bearing deposits
|
368,873
|
357,679
|
||||||||||||||||||||
Accrued
interest and other liabilities
|
40,094
|
52,721
|
||||||||||||||||||||
Total noninterest bearing
liabilities
|
408,967
|
410,400
|
||||||||||||||||||||
STOCKHOLDERS’
EQUITY
|
232,087
|
212,339
|
||||||||||||||||||||
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
3,341,205
|
$
|
3,136,034
|
||||||||||||||||||
Net
interest income1
|
$
|
89,344
|
$
|
84,621
|
||||||||||||||||||
Net
interest spread1
|
3.55
|
%
|
3.48
|
%
|
||||||||||||||||||
Net
interest income to total earning assets1
|
3.92
|
%
|
3.98
|
%
|
||||||||||||||||||
Interest
bearing liabilities to earning assets
|
88.70
|
%
|
88.32
|
%
|
||||||||||||||||||
1
Tax equivalent basis is calculated using an effective tax rate of
35%.
|
Three
Months Ended
|
||||||||||||||||
Sept.
30, 2008
|
Sept.
30, 2007
|
Change
|
%
Change
|
|||||||||||||
NONINTEREST
INCOME:
|
||||||||||||||||
Service
charges and fees, net
|
$
|
3,125
|
$
|
2,861
|
$
|
264
|
9
|
%
|
||||||||
Loan
servicing income
|
1,094
|
1,068
|
26
|
2
|
||||||||||||
Trust
fees
|
2,070
|
2,089
|
(19
|
)
|
(1)
|
|||||||||||
Brokerage
and insurance commissions
|
942
|
820
|
122
|
15
|
||||||||||||
Securities
gains, net
|
5
|
31
|
(26
|
)
|
(84
|
)
|
||||||||||
Gain
(loss) on trading account securities, net
|
(33
|
)
|
(7
|
)
|
(26
|
)
|
(371
|
)
|
||||||||
Impairment
loss on securities
|
(4,688
|
)
|
-
|
(4,688
|
)
|
(100
|
)
|
|||||||||
Gains
on sale of loans
|
295
|
604
|
(309
|
)
|
(51
|
)
|
||||||||||
Income
(loss) on bank owned life insurance
|
(247
|
)
|
595
|
(842
|
)
|
(142
|
)
|
|||||||||
Gain
on sale of merchant credit card services
|
5,200
|
-
|
5,200
|
100
|
||||||||||||
Other
noninterest income
|
117
|
(145
|
)
|
262
|
181
|
|||||||||||
TOTAL
NONINTEREST INCOME
|
$
|
7,880
|
$
|
7,916
|
$
|
(36
|
)
|
-
|
%
|
Nine
Months Ended
|
||||||||||||||||
Sept.
30, 2008
|
Sept.
30, 2007
|
Change
|
%
Change
|
|||||||||||||
NONINTEREST
INCOME:
|
||||||||||||||||
Service
charges and fees, net
|
$
|
8,620
|
$
|
8,287
|
$
|
333
|
4
|
%
|
||||||||
Loan
servicing income
|
3,585
|
3,103
|
482
|
16
|
||||||||||||
Trust
fees
|
6,159
|
6,265
|
(106
|
)
|
(2
|
)
|
||||||||||
Brokerage
and insurance commissions
|
2,717
|
2,158
|
559
|
26
|
||||||||||||
Securities
gains, net
|
1,015
|
303
|
712
|
235
|
||||||||||||
Gain
(loss) on trading account securities, net
|
(467
|
)
|
80
|
(547
|
)
|
(684
|
)
|
|||||||||
Impairment
loss on securities
|
(4,804
|
)
|
-
|
(4,804
|
)
|
(100
|
)
|
|||||||||
Gains
on sale of loans
|
1,279
|
2,051
|
(772
|
)
|
(38
|
)
|
||||||||||
Income
(loss) on bank owned life insurance
|
596
|
1,212
|
(616
|
)
|
(51
|
)
|
||||||||||
Gain
on sale of merchant credit card services
|
5,200
|
-
|
5,200
|
100
|
||||||||||||
Other
noninterest income
|
772
|
161
|
611
|
380
|
||||||||||||
TOTAL
NONINTEREST INCOME
|
$
|
24,672
|
$
|
23,620
|
$
|
1,052
|
4
|
%
|
Three
Months Ended
|
||||||||||||||||
Sept.
30, 2008
|
Sept.
30, 2007
|
Change
|
%
Change
|
|||||||||||||
NONINTEREST
EXPENSES:
|
||||||||||||||||
Salaries
and employee benefits
|
$
|
15,000
|
$
|
14,301
|
$
|
699
|
5
|
%
|
||||||||
Occupancy
|
2,262
|
2,004
|
258
|
13
|
||||||||||||
Furniture
and equipment
|
1,662
|
1,669
|
(7
|
)
|
-
|
|||||||||||
Outside
services
|
3,096
|
2,374
|
722
|
30
|
||||||||||||
Advertising
|
1,012
|
886
|
126
|
14
|
||||||||||||
Intangible
assets amortization
|
236
|
241
|
(5
|
)
|
(2
|
)
|
||||||||||
Other
noninterest expenses
|
3,392
|
3,272
|
120
|
4
|
||||||||||||
TOTAL
NONINTEREST EXPENSES
|
$
|
26,660
|
$
|
24,747
|
$
|
1,913
|
8
|
%
|
Nine
Months Ended
|
||||||||||||||||
Sept.
30, 2008
|
Sept.
30, 2007
|
Change
|
%
Change
|
|||||||||||||
NONINTEREST
EXPENSES:
|
||||||||||||||||
Salaries
and employee benefits
|
$
|
44,459
|
$
|
42,680
|
$
|
1,779
|
4
|
%
|
||||||||
Occupancy
|
6,799
|
5,941
|
858
|
14
|
||||||||||||
Furniture
and equipment
|
5,201
|
5,124
|
77
|
2
|
||||||||||||
Outside
services
|
8,254
|
7,011
|
1,243
|
18
|
||||||||||||
Advertising
|
2,853
|
2,694
|
159
|
6
|
||||||||||||
Intangible
assets amortization
|
708
|
652
|
56
|
9
|
||||||||||||
Other
noninterest expenses
|
9,588
|
9,970
|
(382
|
)
|
(4
|
)
|
||||||||||
TOTAL
NONINTEREST EXPENSES
|
$
|
77,862
|
$
|
74,072
|
$
|
3,790
|
5
|
%
|
LOAN
PORTFOLIO
(Dollars
in thousands)
|
||||||||||||||
September
30, 2008
|
December
31, 2007
|
|||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||
Commercial
and commercial real estate
|
$
|
1,672,372
|
70.61
|
%
|
$
|
1,632,597
|
71.48
|
%
|
||||||
Residential
mortgage
|
219,662
|
9.27
|
217,044
|
9.50
|
||||||||||
Agricultural
and agricultural real estate
|
245,355
|
10.36
|
225,663
|
9.88
|
||||||||||
Consumer
|
224,474
|
9.48
|
199,518
|
8.74
|
||||||||||
Lease
financing, net
|
6,689
|
0.28
|
9,158
|
0.40
|
||||||||||
Gross
loans and leases
|
2,368,552
|
100.00
|
%
|
2,283,980
|
100.00
|
%
|
||||||||
Unearned
discount
|
(2,402
|
)
|
(2,107
|
)
|
||||||||||
Deferred
loan fees
|
(1,891
|
)
|
(1,706
|
)
|
||||||||||
Total
loans and leases
|
2,364,259
|
2,280,167
|
||||||||||||
Allowance
for loan and lease losses
|
(34,845
|
)
|
(32,993
|
)
|
||||||||||
Loans
and leases, net
|
$
|
2,329,414
|
$
|
2,247,174
|
ANALYSIS
OF ALLOWANCE FOR LOAN AND LEASE LOSSES
(Dollars
in thousands)
|
||||||||
Nine
Months Ended September 30,
|
||||||||
2008
|
2007
|
|||||||
Balance
at beginning of period
|
$
|
32,993
|
$
|
29,981
|
||||
Provision
for loan and lease losses from continuing operations
|
14,213
|
6,769
|
||||||
Recoveries
on loans and leases previously charged off
|
974
|
1,362
|
||||||
Loans
and leases charged off
|
(13,335
|
)
|
(6,536
|
)
|
||||
Reduction
related to discontinued operations
|
-
|
(138
|
)
|
|||||
Balance
at end of period
|
$
|
34,845
|
$
|
31,438
|
||||
Net
charge offs to average loans and leases
|
0.54
|
%
|
0.23
|
%
|
NONPERFORMING
ASSETS
(Dollars
in thousands)
|
||||||||||||||||
As
of September 30,
|
As
of December 31,
|
|||||||||||||||
2008
|
2007
|
2007
|
2006
|
|||||||||||||
Nonaccrual
loans and leases
|
$
|
43,523
|
$
|
30,286
|
$
|
30,694
|
$
|
8,104
|
||||||||
Loan
and leases contractually past due 90 days or more
|
347
|
69
|
1,134
|
315
|
||||||||||||
Total
nonperforming loans and leases
|
43,870
|
30,355
|
31,828
|
8,419
|
||||||||||||
Other
real estate
|
9,387
|
2,129
|
2,195
|
1,575
|
||||||||||||
Other
repossessed assets, net
|
520
|
392
|
438
|
349
|
||||||||||||
Total
nonperforming assets
|
$
|
53,777
|
$
|
32,876
|
$
|
34,461
|
$
|
10,343
|
||||||||
Nonperforming
loans and leases to total loans and leases
|
1.86
|
%
|
1.33
|
%
|
1.40
|
%
|
0.39
|
%
|
SECURITIES
PORTFOLIO COMPOSITION
(Dollars
in thousands)
|
||||||||||||
September
30, 2008
|
December
31, 2007
|
|||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||
U.S.
government corporations and agencies
|
$
|
113,319
|
14.91
|
%
|
$
|
255,257
|
37.00
|
%
|
||||
Mortgage-backed
securities
|
457,456
|
60.18
|
244,934
|
35.50
|
||||||||
Obligation
of states and political subdivisions
|
153,419
|
20.18
|
147,398
|
21.36
|
||||||||
Other
securities
|
35,949
|
4.73
|
42,360
|
6.14
|
||||||||
Total
securities
|
$
|
760,143
|
100.00
|
%
|
$
|
689,949
|
100.00
|
%
|
Amount
Issued
|
Issuance
Date
|
Interest
Rate
|
Interest Rate as of 9/30/08
|
Maturity
Date
|
Callable
Date
|
|
$
|
5,000
|
08/07/00
|
10.60%
|
10.60%
|
09/07/2030
|
09/07/2010
|
20,000
|
10/10/03
|
8.25%
|
8.25%
|
10/10/2033
|
10/10/2008
|
|
25,000
|
03/17/04
|
2.75%
over Libor
|
5.57%
|
03/17/2034
|
03/18/2009
|
|
20,000
|
01/31/06
|
1.33%
over Libor
|
4.12%
|
04/07/2036
|
04/07/2011
|
|
20,000
|
06/21/07
|
6.75%
|
6.75%
|
09/15/2037
|
06/15/2012
|
|
20,000
|
06/26/07
|
1.48%
over Libor
|
4.29%
|
09/01/2037
|
09/01/2012
|
|
$
|
110,000
|
CAPITAL
RATIOS
(Dollars
in thousands)
|
||||||||||||||
September
30, 2008
|
December
31, 2007
|
|||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||
Risk-Based
Capital Ratios1
|
||||||||||||||
Tier 1 capital
|
$
|
264,474
|
9.71
|
%
|
$
|
253,675
|
9.74
|
%
|
||||||
Tier 1 capital minimum
requirement
|
108,931
|
4.00
|
%
|
104,191
|
4.00
|
%
|
||||||||
Excess
|
$
|
155,543
|
5.71
|
%
|
$
|
149,484
|
5.74
|
%
|
||||||
Total
capital
|
$
|
335,484
|
12.32
|
%
|
$
|
325,016
|
12.48
|
%
|
||||||
Total
capital minimum requirement
|
217,863
|
8.00
|
%
|
208,382
|
8.00
|
%
|
||||||||
Excess
|
$
|
117,621
|
4.32
|
%
|
$
|
116,634
|
4.48
|
%
|
||||||
Total
risk-adjusted assets
|
$
|
2,723,286
|
$
|
2,604,771
|
||||||||||
Leverage
Capital Ratios2
|
||||||||||||||
Tier 1 capital
|
$
|
264,474
|
7.88
|
%
|
$
|
253,675
|
8.01
|
%
|
||||||
Tier 1 capital minimum
requirement3
|
134,191
|
4.00
|
%
|
126,644
|
4.00
|
%
|
||||||||
Excess
|
$
|
130,283
|
3.88
|
%
|
$
|
127,031
|
4.01
|
%
|
||||||
Average
adjusted assets (less goodwill and other intangible
assets)
|
$
|
3,354,785
|
$
|
3,166,102
|
(1)
|
Based
on the risk-based capital guidelines of the Federal Reserve, a bank
holding company is required to maintain a Tier 1 capital to risk-adjusted
assets ratio of 4.00% and total capital to risk-adjusted assets ratio of
8.00%.
|
(2)
|
The
leverage ratio is defined as the ratio of Tier 1 capital to average
adjusted assets.
|
(3)
|
Management
of Heartland has established a minimum target leverage ratio of
4.00%. Based on Federal Reserve guidelines, a bank holding
company generally is required to maintain a leverage ratio of 3.00% plus
additional capital of at least 100 basis
points.
|
2008
|
2007
|
|||||||||||||||||
Net
Interest
Margin
(in thousands)
|
%
Change
From
Base
|
Net
Interest
Margin
(in thousands)
|
%
Change
From
Base
|
|||||||||||||||
Year 1
|
||||||||||||||||||
Down
100 Basis Points
|
$ | 113,869 | (1.24 | ) | % | $ | 100,545 | (3.35 | ) | % | ||||||||
Base
|
$ | 115,297 | $ | 104,032 | ||||||||||||||
Up
200 Basis Points
|
$ | 114,851 | (0.39 | ) | % | $ | 103,814 | (0.21 | ) | % | ||||||||
Year 2
|
||||||||||||||||||
Down
100 Basis Points
|
$ | 106,549 | (7.59 | ) | % | $ | 97,775 | (6.01 | ) | % | ||||||||
Base
|
$ | 113,445 | (1.61 | ) | % | $ | 106,693 | 2.56 | % | |||||||||
Up
200 Basis Points
|
$ | 116,011 | 0.62 | % | $ | 106,101 | 1.99 | % |
Period
|
(a)
Total
Number of Shares Purchased
|
(b)
Average
Price Paid per Share
|
(c)
Total
Number of Shares Purchased as Part of Publicly Announced Plans or
Programs(1)
|
(d)
Approximate
Dollar Value of Shares that May Yet Be Purchased Under the Plans or
Programs(1)
|
07/01/08-
07/31/08
|
21,474
|
$18.79
|
21,474
|
$2,858,330
|
08/01/08-
08/31/08
|
13,020
|
$21.62
|
13,020
|
$2,905,624
|
09/01/08-
09/30/08
|
3,014
|
$22.01
|
3,014
|
$3,538,973
|
Total:
|
37,508
|
$20.03
|
37,508
|
N/A
|
(1)
|
Effective
April 17, 2007, Heartland’s board of directors authorized management to
acquire and hold up to 250,000 shares of common stock as treasury shares
at any one time. Effective January 24, 2008, Heartland’s board of
directors authorized an expansion of the number of treasury shares at any
one time to 500,000. Effective September 30, 2008, until its expiration
date on April 28, 2009, Heartland’s credit agreement provides for a limit
of no more than an aggregate of 100,000 shares of common stock to be
purchased as treasury shares with no purchases to be made on the open
market.
|
3.1
|
Certificate
of Incorporation of Heartland Financial USA, Inc., as amended May 19,
2004, and the Certificate of Designation of Junior Participating Preferred
Stock of Heartland Financial USA, Inc.
|
10.1
|
Fourth
Amendment to Amended and Restated Credit Agreement among Heartland
Financial USA, Inc. and The Northern Trust Company, U.S. Bank National
Association and JPMorgan Chase Bank, N.A., dated as of September 30,
2008.
|
31.1
|
Certification
of Chief Executive Officer pursuant to Rule
13a-14(a)/15d-14(a).
|
31.2
|
Certification
of Chief Financial Officer pursuant to Rule
13a-14(a)/15d-14(a).
|
32.1
|
Certification
of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
32.2
|
Certification
of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|