Heartland Financial USA, Inc. ("HTLF") Reports Quarterly Results as of September 30, 2024

Third Quarter Highlights

• Quarterly net income available to common stockholders of $62.1 million or $1.44 per common share
• Adjusted earnings available to common stockholders of $50.6 million or $1.17 adjusted diluted earnings per common share (non-GAAP), which excludes:
  
  
  • Gain on sale, net, of $29.7 million due to the sale of Rocky Mountain Bank branches in Montana.
  • Loss on security sales of $9.5 million.
  • Loss on fixed assets of $2.9 million due to branch closures and write-downs on properties listed for sale.
• Common equity to total assets increased to 11.11%; while the tangible common equity ratio (non-GAAP) improved 86 basis points to 8.14%.
• Net interest margin, full tax-equivalent (non-GAAP) increased to 3.78% for the quarter ended September 30, 2024 up from 3.73% for the quarter ended June 30, 2024.
• Nonperforming loans were $69.9 million or 0.61% of total loans, a decrease of $33.8 million or 33% from the quarter ended June 30, 2024.
  • Charge-offs of $32.1 million, of which the majority have been reserved for in prior periods, were recorded for the third quarter.

	For the Quarter Ended												For the Nine Months Ended September 30,
	9/30/2024				6/30/2024				9/30/2023				2024				2023
Earnings Summary:
Net income/(loss) available to common stockholders (in millions)	$	62.1			$	37.7			$	46.1			$	149.6			$	144.2
Diluted earnings/(loss) per common share		1.44				0.88				1.08				3.47				3.37
Annualized return on average assets		1.38	%			0.84	%			0.94	%			1.10	%			1.00	%
Annualized return on average common equity		12.60				8.14				10.47				10.59				11.28
Annualized return on average tangible common equity (non-GAAP)(1)		18.32				12.28				16.32				15.77				17.82
Net interest margin		3.73				3.68				3.14				3.65				3.23
Net interest margin, fully tax-equivalent (non-GAAP)(1)		3.78				3.73				3.18				3.69				3.27
Efficiency ratio		48.58				65.69				63.77				58.94				61.86
Adjusted efficiency ratio, fully-tax equivalent (non-GAAP)(1)		57.98				57.73				59.95				58.16				58.98
Adjusted Earnings Summary (1):
Adjusted earnings available to common stockholders (in millions)	$	50.6			$	49.6			$	48.1			$	152.7			$	148.3
Adjusted diluted earnings per common share		1.17				1.15				1.12				3.54				3.47
Adjusted annualized return on average assets		1.14	%			1.09	%			0.98	%			1.12	%			1.02	%
Adjusted annualized return on average common equity		10.27				10.71				10.92				10.81				11.60
Adjusted annualized return on average tangible common equity		14.98				16.05				17.02				16.09				18.31

(1) Refer to "Non-GAAP Measures" in this earnings release for additional information on the usage and presentation of these non-GAAP measures, and refer to the financial tables for reconciliations to the most directly comparable GAAP measures.

"HTLF delivered a solid third quarter. Net interest margin increased as we continue to pay down high cost wholesale deposits. Our tangible common equity ratio improved to 8.14%. In July we completed the strategic sale of Rocky Mountain Bank in Montana, resulting in a net gain of $29.7 million. We continue to work closely with our partners at UMB on integration planning for our two companies and we're excited about closing the transaction, expected in Q1 2025."

Bruce K. Lee, President and Chief Executive Officer, HTLF

DENVER, Oct. 29, 2024 (GLOBE NEWSWIRE) -- Heartland Financial USA, Inc. (NASDAQ:HTLF) today reported the following results for the quarter ended September 30, 2024, compared to the quarter ended September 30, 2023:

• Net income available to common stockholders of $62.1 million compared to $46.1 million, an increase of $16.1 million or 35%.
• Earnings per diluted common share of $1.44 compared to $1.08, an increase of $0.36 or 33%.
• Adjusted earnings available to common stockholders⁽¹⁾ of $50.6 million or $1.17 per diluted common share compared to $48.1 million or $1.12 per diluted common share, which excludes:
  • Gain on sale, net, of $29.7 million due to the sale of Rocky Mountain Bank branches in Montana.
  • Loss on security sales of $9.5 million.
  • Loss on fixed assets of $2.9 million due to branch closures and write-downs on properties listed for sale.
• Net interest income of $157.9 million compared to $145.8 million, an increase of $12.1 million or 8%.
• Annualized return on average assets of 1.38% compared to 0.94%. Adjusted annualized return on average assets⁽¹⁾ of 1.14% compared to 0.98%.
• Annualized return on average common equity of 12.60% compared to 10.47%. Adjusted annualized return on average common equity⁽¹⁾ of 10.27% compared to 10.92%.
• Annualized return on average tangible common equity⁽¹⁾ of 18.32% compared to 16.32%. Adjusted annualized return on average tangible common equity⁽¹⁾ of 14.98% compared to 17.02%.

Rocky Mountain Bank Sale

HTLF Bank closed on the sale of the Rocky Mountain Bank branches in Montana in mid-July to two purchasers, which included loans of $343.8 million, deposits of $531.9 million and fixed assets of $13.8 million. The gain on sale, net, of $29.7 million was realized in the third quarter of 2024.

Net Interest Income and Net Interest Margin

Net interest margin, expressed as a percentage of average earning assets, was 3.73% (3.78% on a fully tax-equivalent basis, non-GAAP) for the third quarter of 2024 compared to 3.68% (3.73% on a fully tax-equivalent basis, non-GAAP) for the second quarter of 2024, and 3.14% (3.18% on a fully tax-equivalent basis, non-GAAP) for the third quarter of 2023.

Total interest income and average earning asset changes for the third quarter of 2024 compared to the third quarter of 2023 were:

• Total interest income was $253.8 million compared to $245.4 million, an increase of $8.4 million or 3%, primarily attributable to an increase in yields on average earning assets. During the third quarter of 2024, HTLF recorded $5.3 million in additional interest income for a security that paid off.
• Total interest income on a tax-equivalent basis (non-GAAP) was $255.8 million, an increase of $8.2 million or 3%, from $247.6 million. Subsequent to September 30, 2024, the fair value hedges were terminated in favorable market conditions in early October. HTLF recorded $10.3 million of interest income associated with the fair value hedges in the third quarter of 2024 in comparison to $5.6 million in the third quarter of 2023. As a result of the fair value hedge terminations, no additional interest income will be recorded.
• Average earning assets decreased $1.60 billion or 9% to $16.84 billion compared to $18.44 billion, primarily due to the sale of $865.4 million of securities during the fourth quarter of 2023, $108.4 million of securities sold during the second quarter of 2024, and $40.3 million of securities sold during the third quarter of 2024. The proceeds were utilized to pay down high-cost wholesale deposits and borrowings.
• The average rate on earning assets increased 71 basis points to 6.04% from 5.33%, primarily due to recent interest rate increases on earning assets.

Total interest expense and average interest-bearing liability changes for the third quarter of 2024 compared to the third quarter of 2023 were:

• Total interest expense was $95.9 million, a decrease of $3.8 million from $99.7 million, primarily due to a decrease in average interest-bearing liabilities.
• The average interest rate paid on interest-bearing liabilities increased 17 basis points to 3.18% from 3.01%.
• Average interest-bearing deposits decreased $1.65 billion or 13% to $11.03 billion from $12.68 billion.
• The average interest rate paid on interest-bearing deposits decreased 4 basis points to 2.86% from 2.90%.
• Average borrowings and term debt increased $478.2 million to $953.9 million from $475.7 million, and the average interest rate paid on borrowings decreased 40 basis points to 5.39% from 5.78%.
  
  

Net interest income changes for the third quarter of 2024 compared to the third quarter of 2023 were:

• Net interest income totaled $157.9 million compared to $145.8 million, an increase of $12.1 million or 8%.
• Net interest income on a tax-equivalent basis (non-GAAP) totaled $159.9 million compared to $147.9 million, an increase of $12.0 million or 8%.

Noninterest Income and Noninterest Expense

Total noninterest income was $19.0 million during the third quarter of 2024 compared to $28.4 million during the third quarter of 2023, a decrease of $9.4 million or 33%. Significant changes within the noninterest income category for the third quarter of 2024 compared to the third quarter of 2023 were:

• Service charges and fees decreased $1.5 million or 8% to $17.1 million from $18.6 million, primarily attributable to a decrease in consumer NSF and overdraft fees. In the fourth quarter of 2023, HTLF instituted a new fee policy across our single charter customer base in response to industry changes related to consumer overdraft fees.
• Net security losses increased $9.4 million to $9.5 million compared to net security losses of $114,000.
• Net gains on sales of loans held for sale decreased to $0 from $905,000, due to HTLF ceasing originations of residential mortgage loans to be sold to the secondary market.
• Other noninterest income increased $957,000 to $1.6 million from $619,000, primarily due to an increase in deferred compensation income of $1.0 million to $1.5 million from $433,000.  

Total noninterest expense was $85.9 million during the third quarter of 2024 compared to $111.1 million during the third quarter of 2023, a decrease of $25.1 million or 23%. Significant changes within the noninterest expense category for the third quarter of 2024 compared to the third quarter of 2023 were:

• Salaries and employee benefits totaled $62.7 million compared to $62.3 million, an increase of $480,000 or 1%. The increase was attributable to higher benefit costs including incentive compensation and benefit expenses partially offset by a reduction of full-time equivalent employees. Full-time equivalent employees totaled 1,725 compared to 1,965, a decrease of 240 or 12%.
• Professional fees totaled $17.4 million compared to $13.6 million, an increase of $3.8 million or 28%, primarily due to an increase legal expenses, including those associated with special asset loans.
• Gain on sale of assets, net, totaled $26.4 million compared to a loss on sale of assets of $108,000. As discussed earlier, Rocky Mountain Bank, a division of HTLF Bank, was sold during the third quarter of 2024 which generated a gain on sale, net, of $29.7 million.
  
  

The effective tax rate was 24.25% for the third quarter of 2024 compared to 21.89% for third quarter of 2023. The following items impacted the third quarter 2024 and 2023 tax calculations:

• Various tax credits of $629,000 compared to $1.6 million.
• Tax-exempt interest income as a percentage of pre-tax income of 8.92% compared to 13.14%.
• Tax benefit of $140,000 compared to a tax expense of $41,000 resulting from the vesting of restricted stock units.
• Tax expense of $1.1 million compared to $1.6 million resulting from the disallowed interest expense related to tax-exempt loans and securities.

Total Assets, Total Loans and Total Deposits

Total assets were $18.27 billion at September 30, 2024, compared to $18.81 billion at June 30, 2024, and $19.41 billion at December 31, 2023. Total assets decreased $540.1 million or 3% during the third quarter of 2024 and $1.14 billion or 6% since year-end 2023. Securities represented 27% and 29% of total assets at September 30, 2024, and December 31, 2023, respectively.

Total loans held to maturity were $11.44 billion at September 30, 2024, compared to $11.61 billion at June 30, 2024, and $12.07 billion at December 31, 2023. Loans decreased $167.4 million or 1% during the third quarter of 2024 and $627.7 million or 5% since year-end 2023. Excluding the impact of Rocky Mountain Bank, loans held to maturity decreased $172.4 million or 1% during the third quarter of 2024 and decreased $284.0 million or 2% since year-end 2023.

Significant changes by loan category at September 30, 2024 compared to June 30, 2024 included:

• Commercial and business lending, which includes commercial and industrial, PPP and owner occupied commercial real estate loans, decreased $262.7 million or 4% to $5.99 billion compared to $6.26 billion. Excluding the impact of Rocky Mountain Bank, commercial and business lending decreased $119.4 million or 2%.
• Commercial real estate lending, which includes non-owner occupied commercial real estate and construction loans, decreased $3.3 million, or less than 1%, to $3.58 billion compared to $3.58 billion. Excluding the impact of Rocky Mountain Bank, commercial real estate lending increased $67.0 million or 2%.
• Agricultural and agricultural real estate loans decreased $167.2 million or 19% to $701.2 million compared to $868.4 million. Excluding the impact of Rocky Mountain Bank, agricultural and agricultural real estate loans decreased $99.9 million or 12%.
• Residential mortgage loans decreased $56.7 million or 7% to $708.0 million compared to $764.7 million. Excluding the impact of Rocky Mountain Bank, residential mortgage loans decreased $25.7 million or 3%.

Significant changes by loan category at September 30, 2024 compared to December 31, 2023 included:

• Commercial and business lending, which includes commercial and industrial, PPP and owner occupied commercial real estate loans, decreased $298.6 million or 5% to $5.99 billion compared to $6.29 billion. Excluding the Rocky Mountain Bank loans sold of $143.3 million, commercial and business lending decreased $155.3 million or 2%.
• Commercial real estate lending, which includes non-owner occupied commercial real estate and construction loans, increased $9.9 million or less than 1% to $3.58 billion compared to $3.57 billion. Excluding the Rocky Mountain Bank loans sold of $70.3 million, commercial real estate lending increased $80.2 million or 2%.
• Agricultural and agricultural real estate loans decreased $218.0 million or 24% to $701.2 million compared to $919.2 million. Excluding the Rocky Mountain Bank loans sold of $67.3 million, agricultural and agricultural real estate loans decreased $150.7 million or 16%.
• Residential mortgage loans decreased $89.8 million or 11% to $708.0 million compared to $797.8 million. Excluding the Rocky Mountain Bank loans sold of $31.0 million, residential mortgage loans decreased $58.9 million or 7%.

Total deposits were $14.95 billion as of September 30, 2024, compared to $14.96 billion as of June 30, 2024, a decrease of $3.4 million or less than 1%. Total deposits were $14.95 billion as of September 30, 2024, compared to $16.20 billion at December 31, 2023, which was a decrease of $1.25 billion or 8%. Excluding the impact of Rocky Mountain Bank, deposits decreased $9.8 million or less than 1% during the third quarter of 2024 and decreased $716.6 million or 4% since year-end 2023.

Total customer deposits were $14.35 billion as of September 30, 2024, compared to $14.13 billion at June 30, 2024, an increase of $217.6 million or 2%. Excluding the impact of Rocky Mountain Bank, customer deposits increased $211.2 million or 1%. Significant customer deposit changes by category at September 30, 2024, compared to June 30, 2024, included:

• Customer demand deposits decreased $367.6 million or 8% to $4.01 billion compared to $4.38 billion. Excluding the impact of Rocky Mountain Bank, customer demand deposits decreased $235.9 million or 6%.
• Customer savings deposits increased $270.0 million or 3% to $8.71 billion compared to $8.44 billion. Excluding the impact of Rocky Mountain Bank, customer savings deposits increased $554.4 million or 7%.
• Customer time deposits decreased $223.1 million or 12% to $1.63 billion compared to $1.85 billion. Excluding the impact of Rocky Mountain Bank, customer time deposits decreased $107.3 million or 6%.
  
  

Total customer deposits were $14.35 billion as of September 30, 2024, compared to $14.86 billion at December 31, 2023, a decrease of $505.1 million or 3%. Excluding the Rocky Mountain Bank customer deposits sold of $531.9 million, customer deposits increased $26.7 million. Significant customer deposit changes by category at September 30, 2024, compared to December 31, 2023, included:

• Customer demand deposits decreased $491.1 million or 11% to $4.01 billion compared to $4.50 billion. Excluding the Rocky Mountain Bank customer demand deposits sold of $131.7 million, customer demand deposits decreased $359.3 million or 8%.
• Customer savings deposits increased $302.0 million or 4% to $8.71 billion compared to $8.41 billion. Excluding the Rocky Mountain Bank customer savings deposits sold of $284.3 million, customer savings deposits increased $586.3 million or 7%.
• Customer time deposits decreased $316.0 million or 16% to $1.63 billion compared to $1.94 billion. Excluding the Rocky Mountain Bank customer time deposits sold of $115.8 million, customer time deposits decreased $200.2 million or 10%.
  
  

Total wholesale and institutional deposits were $601.9 million as of September 30, 2024, a decrease of $221.0 million or 27% from $822.9 million at June 30, 2024. Significant wholesale and institutional deposit changes by category at September 30, 2024 compared to June 30, 2024 included:

• Wholesale and institutional savings deposits decreased $105.7 million or 33% to $213.0 million compared to $318.6 million.
• Wholesale time deposits decreased $115.3 million or 23% to $389.0 million compared to $504.3 million.

Total wholesale and institutional deposits were $601.9 million as of September 30, 2024, which was a decrease of $743.4 million or 55% from $1.35 billion at December 31, 2023. Significant wholesale and institutional deposit changes by category at September 30, 2024 compared to December 31, 2023 included:

• Wholesale and institutional savings deposits decreased $181.4 million or 46% to $213.0 million compared to $394.4 million.
• Wholesale time deposits decreased $562.0 million or 59% to $389.0 million compared to $950.9 million.

Provision and Allowance

Provision and Allowance for Credit Losses for Loans

Provision for credit losses for loans for the third quarter of 2024 was $8.9 million, an increase of $6.2 million from $2.7 million recorded in the third quarter of 2023.

The allowance for credit losses for loans totaled $106.8 million at September 30, 2024 and $122.6 million at December 31, 2023. The following items impacted the allowance for credit losses for loans at September 30, 2024:

• Provision expense for the nine months ended September 30, 2024, totaled $22.3 million. Provision expense was primarily impacted in the third quarter of 2024 by a nonperforming food manufacturing syndication loan currently in bankruptcy proceedings. HTLF recorded a charge-off of $19.2 million for this credit during the third quarter of 2024, of which $10.0 million was reserved for in a prior period.
• Net charge-offs of $38.0 million, of which the majority have been reserved for in prior periods, were recorded for the first nine months of 2024.

Provision and Allowance for Credit Losses for Unfunded Commitments

The allowance for unfunded commitments decreased $6.0 million or 36% to $10.5 million at September 30, 2024, from $16.5 million at December 31, 2023. The following impacted HTLF's allowance for credit losses for unfunded commitments during 2024:

• Provision benefit for the nine months ended September 30, 2024, totaled $6.0 million.
• Reduction of $82.9 million in unfunded commitments for construction loans, which carry the highest loss rate.
• Total unfunded commitments decreased $684.5 million or 15% to $3.94 billion at September 30, 2024 compared to $4.63 billion at December 31, 2023.
  
  

Total Provision and Allowance for Lending Related Credit Losses

The total provision expense for lending related credit losses was $6.3 million for the third quarter of 2024 compared to $1.5 million for the third quarter of 2023. The total allowance for lending related credit losses was $117.3 million or 1.02% of total loans at September 30, 2024, compared to $139.0 million or 1.15% of total loans as of December 31, 2023.

Nonperforming Assets

Nonperforming assets were $76.8 million or 0.42% of total assets at September 30, 2024, compared to $110.5 million or 0.57% of total assets at December 31, 2023. Nonperforming assets were reduced by charge-offs of $32.1 million and the return to performing status of a $10.4 million owner occupied commercial real estate loan relationship. The reduction was partially offset by the addition of a $10.1 million non-owner commercial real estate loan relationship. Nonperforming loans were $69.9 million or 0.61% of total loans at September 30, 2024, compared to $97.9 million or 0.81% of total loans at December 31, 2023. At September 30, 2024, loans delinquent 30-89 days were 0.26% of total loans compared to 0.09% of total loans at December 31, 2023. The increase in the 30-89 day delinquencies was due to a single $12.8 million real estate construction loan. Other real estate owned, net, decreased $5.7 million or 46% to $6.8 million at September 30, 2024 from $12.5 million at December 31, 2023.

Non-GAAP Financial Measures

This earnings release contains references to financial measures which are not defined by generally accepted accounting principles ("GAAP"). Management believes the non-GAAP measures are helpful for investors to analyze and evaluate the company's financial condition and operating results. However, these non-GAAP measures have inherent limitations and should not be considered a substitute for operating results determined in accordance with GAAP. Additionally, because non-GAAP measures are not standardized, it may not be possible to compare the non-GAAP measures in this earnings release with other companies' non-GAAP measures. Reconciliations of each non-GAAP measure to the most directly comparable GAAP measure may be found in the financial tables in this earnings release.

Below are the non-GAAP measures included in this earnings release, management's reason for including each measure and the method of calculating each measure:

• Adjusted earnings available to common stockholders and adjusted diluted earnings per common share, adjust net income for the gain/loss from sale of securities, and other non-operating expenses as well as the tax effect of those transactions. Management believes these measures enhance the comparability net income available to common stockholders as it reflects adjustments commonly made by management, investors and analysts to evaluate the ongoing operations and enhance comparability with the results of prior periods.
• Adjusted annualized return on average assets, adjusts net income for the gain/loss from sale of securities, and other non-operating expenses as well as the tax effect of those transactions. Management believes this measure enhances the comparability of annualized return on average assets as it reflects adjustments commonly made by management, investors and analysts to evaluate the ongoing operations and enhance comparability with the results of prior periods.
• Annualized net interest margin, fully tax-equivalent, adjusts net interest income for the tax-favored status of certain loans and securities. Management believes this measure enhances the comparability of net interest income arising from taxable and tax-exempt sources.
• Adjusted efficiency ratio, fully tax equivalent, expresses noninterest expenses as a percentage of fully tax-equivalent net interest income and noninterest income. This efficiency ratio is presented on a tax-equivalent basis which adjusts net interest income and noninterest expenses for the tax favored status of certain loans, securities, and tax credit projects. Management believes the presentation of this non-GAAP measure provides supplemental useful information for proper understanding of the financial results as it enhances the comparability of income and expenses arising from taxable and nontaxable sources and excludes specific items as noted in reconciliation contained in this earnings release.
• Net interest income, fully tax equivalent, is net income adjusted for the tax-favored status of certain loans and securities. Management believes this measure enhances the comparability of net interest income arising from taxable and tax-exempt sources. Net interest margin, fully tax equivalent, is net interest income adjusted for the tax-favored status of certain loans and securities divided by average earning assets.
• Tangible book value per common share is total common equity less goodwill and core deposit and customer relationship intangibles, net, divided by common shares outstanding, net of treasury. This measure is included as it is considered to be a critical metric to analyze and evaluate use of equity, financial condition and capital strength.
• Tangible common equity ratio is total common equity less goodwill and core deposit and customer relationship intangibles, net, divided by total assets less goodwill and core deposit and customer relationship intangibles, net. This measure is included as it is considered to be a critical metric to analyze and evaluate financial condition and capital strength.
• Adjusted annualized return on average common equity, adjusts net income for the loss from sale of securities, and other non-operating expenses as well as the tax effect of those transactions. Management believes this measure enhances the comparability of annualized return on average assets as it reflects adjustments commonly made by management, investors and analysts to evaluate the ongoing operations and enhance comparability with the results of prior periods.
• Annualized return on average tangible common equity is net income excluding intangible amortization calculated as (1) net income excluding tax-effected core deposit and customer relationship intangibles amortization, divided by (2) average common equity less goodwill and core deposit and customer relationship intangibles, net. This measure is included as it is considered to be a critical metric to analyze and evaluate use of equity, financial condition and capital strength.
• Adjusted annualized return on average tangible common equity, adjusts net income available to common stockholders for the loss from sale of securities, and other non-operating expenses as well as the tax effect of those transactions. Management believes this measure enhances the comparability of annualized return on average assets as it reflects adjustments commonly made by management, investors and analysts to evaluate the ongoing operations and enhance comparability with the results of prior periods.
• Annualized ratio of core expenses to average assets adjusts noninterest expenses to exclude specific items noted in the reconciliation. Management includes this measure as it is considered to be a critical metric to analyze and evaluate controllable expenses related to primary business operations.
  
  

About HTLF

Heartland Financial USA, Inc., is a Denver, Colorado-based bank holding company operating under the brand name HTLF, with assets of $18.27 billion as of September 30, 2024. HTLF's banks serve customers in the West, Southwest and Midwest regions. HTLF is committed to serving the banking needs of privately owned businesses, their owners, executives and employees. Our core commercial business is supported by a strong retail banking operation, in addition to a diversified line of financial services including treasury management, wealth management and investments. Additional information is available at www.htlf.com.

Safe Harbor Statement

This release (including any information incorporated herein by reference), and future oral and written statements of the company and its management, may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the business, financial condition, results of operations, plans, objectives and future performance of HTLF.

Any statements about the company's expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. Forward-looking statements may include information about possible or assumed future results of the company's operations or performance. These forward-looking statements are generally identified by the use of the words such as "believe", "expect", "intent", "anticipate", "plan", "intend", "estimate", "project", "may", "will", "would", "could", "should", "may", "view", "opportunity", "potential", or similar or negative expressions of these words or phrases that are used in this release, and future oral and written statements of the company and its management. Although the company may make these statements based on management's experience, beliefs, expectations, assumptions and best estimate of future events, the ability of the company to predict results or the actual effect or outcomes of plans or strategies is inherently uncertain, and there may be events or factors that management has not anticipated. Therefore, the accuracy and achievement of such forward-looking statements and estimates are subject to a number of risks, many of which are beyond the ability of management to control or predict, that could cause actual results to differ materially from those in its forward-looking statements. These factors, which the company currently believes could have a material effect on its operations and future prospects, are detailed below and in the risk factors in HTLF's reports filed with the Securities and Exchange Commission ("SEC"), including the "Risk Factors" section under Item 1A of Part I of the company's Annual Report on Form 10-K for the year ended December 31, 2023 and updates in HTLF's Forms 10-Q filed thereafter, and include, among others:

• Economic and Market Conditions Risks, including risks related to the deterioration of the U.S. economy in general and in the local economies in which HTLF conducts its operations and future civil unrest, natural disasters, pandemics and governmental measures addressing them, climate change and climate-related regulations, persistent inflation, higher interest rates, supply chain issues, labor shortages, terrorist threats or acts of war;
• Credit Risks, including risks of increasing credit losses due to deterioration in the financial condition of HTLF's borrowers, changes in asset and collateral values due to climate and other borrower industry risks, which may impact the provision for credit losses and net charge-offs;
• Liquidity and Interest Rate Risks, including the impact of capital market conditions, rising interest rates and changes in monetary policy on our borrowings and net interest income;
• Risks related to the planned merger with UMB Financial Corporation (the "Merger"), the fluctuation of the market value of the merger consideration, risks related to combining our businesses, including expenses related to the Merger and integration of the combined entity, risks that the Merger may not occur, and the risk of litigation related to the Merger;
• Operational Risks, including processing, information systems, cybersecurity, vendor, business interruption, and fraud risks;
• Strategic and External Risks, including economic, political, and competitive forces impacting our business;
• Legal, Compliance and Reputational Risks, including regulatory and litigation risks; and
• Risks of Owning Stock in HTLF, including stock price volatility and dilution as a result of future equity offerings and acquisitions.

There can be no assurance that other factors not currently anticipated by HTLF will not materially and adversely affect HTLF's business, financial condition and results of operations. Additionally, all statements in this release, including forward-looking statements speak only as of the date they are made. HTLF does not undertake and specifically disclaims any obligation to publicly release the results of any revisions which may be made to or correct or update any forward-looking statement to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events or to otherwise update any statement in light of new information or future events. Further information concerning HTLF and its business, including additional factors that could materially affect HTLF's financial results, is included in HTLF's filings with the SEC.

-FINANCIAL TABLES FOLLOW-

CONTACT:

Kevin L. Thompson

Executive Vice President

Chief Financial Officer

(563) 589-1994

[email protected]

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,
		2024				2023				2024				2023
Interest Income
Interest and fees on loans	$	192,506			$	182,394			$	587,328			$	505,136
Interest on securities:
Taxable		51,116				54,800				145,511				168,948
Nontaxable		5,979				6,584				18,062				18,990
Interest on federal funds sold		—				3				—				3
Interest on deposits with other banks and short-term investments		4,193				1,651				10,244				4,833
Total Interest Income		253,794				245,432				761,145				697,910
Interest Expense
Interest on deposits		82,976				92,744				247,609				231,617
Interest on borrowings		7,378				1,167				25,727				4,437
Interest on term debt		5,543				5,765				16,956				16,756
Total Interest Expense		95,897				99,676				290,292				252,810
Net Interest Income		157,897				145,756				470,853				445,100
Provision for credit losses		6,276				1,516				16,270				9,969
Net Interest Income After Provision for Credit Losses		151,621				144,240				454,583				435,131
Noninterest Income
Service charges and fees		17,100				18,553				51,127				55,316
Loan servicing income		111				278				349				1,403
Trust fees		5,272				4,734				15,847				15,810
Brokerage and insurance commissions		853				692				2,501				2,065
Capital markets fees		2,116				1,845				5,003				8,331
Securities gains (losses), net		(9,520	)			(114	)			(19,573	)			(1,532	)
Unrealized gain on equity securities, net		377				13				605				165
Net gains on sale of loans held for sale		—				905				104				3,786
Income on bank owned life insurance		1,107				858				3,610				3,042
Other noninterest income		1,576				619				5,289				2,489
Total Noninterest Income		18,992				28,383				64,862				90,875
Noninterest Expense
Salaries and employee benefits		62,742				62,262				191,817				186,510
Occupancy		6,318				6,438				19,843				20,338
Furniture and equipment		2,062				2,720				6,554				8,698
Professional fees		17,448				13,616				48,351				41,607
FDIC insurance assessments		3,035				3,313				11,344				9,627
Advertising		1,937				1,633				4,663				6,670
Core deposit intangibles amortization		1,345				1,625				4,258				5,128
Other real estate and loan collection expenses, net		395				481				1,422				984
(Gain) loss on sales/valuations of assets, net		(26,419	)			108				(26,012	)			(2,149	)
Acquisition, integration and restructuring costs		2,026				2,429				9,374				5,994
Partnership investment in tax credit projects		222				1,136				938				1,828
Other noninterest expense		14,816				15,292				43,214				46,307
Total Noninterest Expense		85,927				111,053				315,766				331,542
Income Before Income Taxes		84,686				61,570				203,679				194,464
Income taxes		20,533				13,479				48,077				44,181
Net Income/(Loss)		64,153				48,091				155,602				150,283
Preferred dividends		(2,013	)			(2,013	)			(6,038	)			(6,038	)
Net Income/(Loss) Available to Common Stockholders	$	62,140			$	46,078			$	149,564			$	144,245
Earnings/(loss) per common share-diluted	$	1.44			$	1.08			$	3.47			$	3.37
Weighted average shares outstanding-diluted		43,195,257				42,812,563				43,080,422				42,769,872

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
	For the Quarter Ended
	9/30/2024				6/30/2024				3/31/2024				12/31/2023				9/30/2023
Interest Income
Interest and fees on loans	$	192,506			$	199,161			$	195,661			$	192,861			$	182,394
Interest on securities:
Taxable		51,116				47,381				47,014				54,573				54,800
Nontaxable		5,979				6,042				6,041				6,278				6,584
Interest on federal funds sold		—				—				—				—				3
Interest on deposits with other banks and short-term investments		4,193				3,045				3,006				2,174				1,651
Total Interest Income		253,794				255,629				251,722				255,886				245,432
Interest Expense
Interest on deposits		82,976				80,499				84,134				88,071				92,744
Interest on borrowings		7,378				10,825				7,524				5,874				1,167
Interest on term debt		5,543				5,564				5,849				5,804				5,765
Total Interest Expense		95,897				96,888				97,507				99,749				99,676
Net Interest Income		157,897				158,741				154,215				156,137				145,756
Provision for credit losses		6,276				9,008				986				11,738				1,516
Net Interest Income After Provision for Credit Losses		151,621				149,733				153,229				144,399				144,240
Noninterest Income
Service charges and fees		17,100				16,964				17,063				18,708				18,553
Loan servicing income		111				107				131				158				278
Trust fees		5,272				5,532				5,043				4,905				4,734
Brokerage and insurance commissions		853				894				754				729				692
Capital markets fees		2,116				1,996				891				1,676				1,845
Securities gains (losses), net		(9,520	)			(10,111	)			58				(140,007	)			(114	)
Unrealized gain on equity securities, net		377				133				95				75				13
Net gains on sale of loans held for sale		—				—				104				94				905
Income on bank owned life insurance		1,107				1,326				1,177				729				858
Other noninterest income		1,576				1,366				2,347				1,132				619
Total Noninterest Income		18,992				18,207				27,663				(111,801	)			28,383
Noninterest Expense
Salaries and employee benefits		62,742				65,120				63,955				64,766				62,262
Occupancy		6,318				6,262				7,263				6,509				6,438
Furniture and equipment		2,062				2,155				2,337				2,901				2,720
Professional fees		17,448				15,372				15,531				17,060				13,616
FDIC insurance assessments		3,035				3,340				4,969				10,313				3,313
Advertising		1,937				1,368				1,358				1,677				1,633
Core deposit intangibles amortization		1,345				1,421				1,492				1,611				1,625
Other real estate and loan collection expenses, net		395				515				512				505				481
(Gain) loss on sales/valuations of assets, net		(26,419	)			193				214				2,072				108
Acquisition, integration and restructuring costs		2,026				5,973				1,375				4,365				2,429
Partnership investment in tax credit projects		222				222				494				3,573				1,136
Other noninterest expense		14,816				14,303				14,095				14,933				15,292
Total Noninterest Expense		85,927				116,244				113,595				130,285				111,053
Income Before Income Taxes		84,686				51,696				67,297				(97,687	)			61,570
Income taxes		20,533				11,954				15,590				(27,324	)			13,479
Net Income/(Loss)		64,153				39,742				51,707				(70,363	)			48,091
Preferred dividends		(2,013	)			(2,012	)			(2,013	)			(2,012	)			(2,013	)
Net Income/(Loss) Available to Common Stockholders	$	62,140			$	37,730			$	49,694			$	(72,375	)		$	46,078
Earnings/(loss) per common share-diluted	$	1.44			$	0.88			$	1.16			$	(1.69	)		$	1.08
Weighted average shares outstanding-diluted		43,195,257				43,060,354				42,915,768				42,838,405				42,812,563

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
	As of
	9/30/2024				6/30/2024				3/31/2024				12/31/2023				9/30/2023
Assets
Cash and due from banks	$	228,719			$	226,735			$	208,176			$	275,554			$	248,756
Interest-bearing deposits with other banks and short-term investments		359,675				147,211				236,190				47,459				99,239
Cash and cash equivalents		588,394				373,946				444,366				323,013				347,995
Time deposits in other financial institutions		1,050				1,340				1,240				1,240				1,490
Securities:
Carried at fair value		4,057,335				4,185,054				4,418,222				4,646,891				5,482,687
Held to maturity, at cost		839,623				842,980				841,055				838,241				835,468
Other investments, at cost		69,511				70,684				68,524				91,277				90,001
Loans held for sale		—				348,761				352,744				5,071				6,262
Loans:
Held to maturity		11,440,917				11,608,309				11,644,641				12,068,645				11,872,436
Allowance for credit losses		(106,797	)			(126,861	)			(123,934	)			(122,566	)			(110,208	)
Loans, net		11,334,120				11,481,448				11,520,707				11,946,079				11,762,228
Premises, furniture and equipment, net		155,140				175,953				176,582				181,070				187,436
Goodwill		576,005				576,005				576,005				576,005				576,005
Core deposit intangibles, net		14,157				15,501				16,923				18,415				20,026
Cash surrender value on life insurance		199,998				199,036				197,671				197,085				196,694
Other real estate, net		6,805				7,533				2,590				12,548				14,362
Other assets		430,155				534,429				516,198				574,772				609,139
Total Assets	$	18,272,293			$	18,812,670			$	19,132,827			$	19,411,707			$	20,129,793
Liabilities and Equity
Liabilities
Deposits:
Demand	$	4,009,218			$	4,244,169			$	4,264,390			$	4,500,304			$	4,792,813
Savings		8,926,192				8,470,416				8,669,221				8,805,597				8,754,911
Time		2,017,806				2,242,005				2,368,555				2,895,813				3,553,269
Total deposits		14,953,216				14,956,590				15,302,166				16,201,714				17,100,993
Deposits held for sale		—				538,308				596,328				—				—
Borrowings		546,219				694,909				650,033				622,255				392,634
Term debt		373,324				372,988				372,652				372,396				372,059
Accrued expenses and other liabilities		259,161				222,025				232,815				282,225				438,577
Total Liabilities		16,131,920				16,784,820				17,153,994				17,478,590				18,304,263
Stockholders' Equity
Preferred equity		110,705				110,705				110,705				110,705				110,705
Common stock		42,884				42,852				42,784				42,688				42,656
Capital surplus		1,098,837				1,096,619				1,093,207				1,090,740				1,088,267
Retained earnings		1,252,247				1,203,092				1,178,330				1,141,501				1,226,740
Accumulated other comprehensive income/(loss)		(364,300	)			(425,418	)			(446,193	)			(452,517	)			(642,838	)
Total Equity		2,140,373				2,027,850				1,978,833				1,933,117				1,825,530
Total Liabilities and Equity	$	18,272,293			$	18,812,670			$	19,132,827			$	19,411,707			$	20,129,793

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
	For the Quarter Ended
	9/30/2024				6/30/2024				3/31/2024				12/31/2023				9/30/2023
Average Balances
Assets	$	18,439,910			$	19,043,362			$	19,296,638			$	19,667,825			$	20,207,920
Loans, net of unearned		11,584,999				12,010,289				12,021,930				11,938,272				11,800,064
Total deposits		15,148,944				15,562,920				16,042,402				16,709,394				17,507,813
Customer deposits		14,347,965				14,768,407				14,816,652				14,969,948				14,699,235
Earning assets		16,838,131				17,331,435				17,597,068				17,853,957				18,439,010
Interest-bearing liabilities		11,986,220				12,461,957				12,607,745				12,721,680				13,158,631
Common equity		1,962,334				1,863,236				1,832,959				1,729,086				1,746,818
Total stockholders' equity		2,073,039				1,973,941				1,943,664				1,839,791				1,857,523
Tangible common equity (non-GAAP)(1)		1,371,515				1,271,046				1,239,313				1,133,888				1,149,992
Key Performance Ratios
Annualized return on average assets		1.38	%			0.84	%			1.08	%		(1.42		)%			0.94	%
Adjusted annualized return on average assets (non-GAAP)(1)		1.14				1.09				1.13				0.96				0.98
Annualized return on average common equity (GAAP)		12.60				8.14				10.90				(16.61	)			10.47
Adjusted annualized return on average common equity (non-GAAP)(1)		10.27				10.71				11.50				10.46				10.92
Annualized return on average tangible common equity (non-GAAP)(1)		18.32				12.28				16.49				(24.89	)			16.32
Adjusted annualized return on average tangible common equity (non-GAAP)(1)		14.98				16.05				17.38				16.38				17.02
Annualized ratio of net charge-offs/(recoveries) to average loans		0.99				0.23				0.08				0.01				0.12
Annualized net interest margin (GAAP)		3.73				3.68				3.52				3.47				3.14
Annualized net interest margin, fully tax-equivalent (non-GAAP)(1)		3.78				3.73				3.57				3.52				3.18
Annualized cost of deposits		2.18				2.08				2.11				2.09				2.10
Efficiency ratio (GAAP)		48.58				65.69				62.46				293.86				63.77
Adjusted efficiency ratio, fully tax-equivalent (non-GAAP)(1)		57.98				57.73				58.77				59.31				59.95
Annualized ratio of total noninterest expenses to average assets (GAAP)		1.85				2.46				2.37				2.63				2.18
Annualized ratio of core expenses to average assets (non-GAAP)(1)		2.35				2.30				2.25				2.23				2.08

	For the Quarter Ended September 30,								For the Nine Months Ended September 30,
		2024				2023				2024				2023
Average Balances
Assets	$	18,439,910			$	20,207,920			$	18,924,862			$	20,182,808
Loans, net of unearned		11,584,999				11,800,064				11,871,358				11,602,741
Total deposits		15,148,944				17,507,813				15,583,165				17,567,614
Customer deposits		14,347,965				14,699,235				14,642,347				14,778,030
Earning assets		16,838,131				18,439,010				17,254,023				18,451,907
Interest-bearing liabilities		11,986,220				13,158,631				12,350,640				12,985,665
Common equity		1,962,334				1,746,818				1,886,454				1,710,230
Total stockholders' equity		2,073,039				1,857,523				1,997,159				1,820,935
Tangible common equity (non-GAAP)(1)		1,371,515				1,149,992				1,294,241				1,111,724
Key Performance Ratios
Annualized return on average assets		1.38	%			0.94	%			1.10	%			1.00	%
Adjusted annualized return on average assets (non-GAAP)(1)		1.14				0.98				1.12				1.02
Annualized return on average common equity (GAAP)		12.60				10.47				10.59				11.28
Adjusted annualized return on average common equity (non-GAAP)(1)		10.27				10.92				10.81				11.60
Annualized return on average tangible common equity (non-GAAP)(1)		18.32				16.32				15.77				17.82
Adjusted annualized return on average tangible common equity (non-GAAP)(1)		14.98				17.02				16.09				18.31
Annualized ratio of net charge-offs/(recoveries) to average loans		0.99				0.12				0.43				0.14
Annualized net interest margin (GAAP)		3.73				3.14				3.65				3.23
Annualized net interest margin, fully tax-equivalent (non-GAAP)(1)		3.78				3.18				3.69				3.27
Annualized cost of deposits		2.18				2.10				2.12				1.76
Efficiency ratio (GAAP)		48.58				63.77				58.94				61.86
Adjusted efficiency ratio, fully tax-equivalent (non-GAAP)(1)		57.98				59.95				58.16				58.98
Annualized ratio of total noninterest expenses to average assets (GAAP)		1.85				2.18				2.23				2.20
Annualized ratio of core expenses to average assets (non-GAAP)(1)		2.35				2.08				2.30				2.12
(1) Refer to "Non-GAAP Measures" in this earnings release for additional information on the usage and presentation of these non-GAAP measures, and refer to these financial tables for the reconciliations to the most directly comparable GAAP measures.

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
	9/30/2024				6/30/2024				3/31/2024				12/31/2023				9/30/2023
Common Share Data
Book value per common share	$	47.33			$	44.74			$	43.66			$	42.69			$	40.20
Tangible book value per common share (non-GAAP)(1)		33.57				30.94				29.81				28.77				26.23
ASC 320 effect on book value per common share		(8.78	)			(10.82	)			(11.18	)			(11.00	)			(16.27	)
Common shares outstanding, net of treasury stock		42,883,865				42,852,180				42,783,670				42,688,008				42,656,303
Capital Ratios
Common equity to total assets		11.11	%			10.19	%			9.76	%			9.39	%			8.52	%
Tangible common equity ratio (non-GAAP)(1)		8.14				7.28				6.88				6.53				5.73
Tier 1 leverage ratio		10.77				10.13				9.84				9.44				9.59
Common equity tier 1 ratio(2)		12.66				11.68				11.40				10.97				11.37
Total risk based capital ratio(2)		16.34				15.32				14.99				14.53				14.90
Other Selected Trend Information
Effective tax rate		24.25	%			23.12	%			23.17	%			27.97	%			21.89	%
Full time equivalent employees		1,725				1,843				1,888				1,970				1,965
Loans Held to Maturity
Commercial and industrial	$	3,503,093			$	3,541,239			$	3,545,051			$	3,652,047			$	3,591,809
Paycheck Protection Program ("PPP")		1,582				1,864				2,172				2,777				3,750
Owner occupied commercial real estate		2,489,697				2,555,964				2,545,033				2,638,175				2,429,659
Commercial and business lending		5,994,372				6,099,067				6,092,256				6,292,999				6,025,218
Non-owner occupied commercial real estate		2,455,396				2,434,258				2,495,068				2,553,711				2,656,358
Real estate construction		1,119,922				1,082,726				1,041,583				1,011,716				1,029,554
Commercial real estate lending		3,575,318				3,516,984				3,536,651				3,565,427				3,685,912
Total commercial lending		9,569,690				9,616,051				9,628,907				9,858,426				9,711,130
Agricultural and agricultural real estate		701,211				802,958				809,876				919,184				842,116
Residential mortgage		707,984				733,401				756,021				797,829				813,803
Consumer		462,032				455,899				449,837				493,206				505,387
Total loans held to maturity	$	11,440,917			$	11,608,309			$	11,644,641			$	12,068,645			$	11,872,436
Total unfunded loan commitments	$	3,941,268			$	4,381,565			$	4,537,718			$	4,625,768			$	4,813,798
Deposits
Demand-customer	$	4,009,218			$	4,244,169			$	4,264,390			$	4,500,304			$	4,792,813
Savings-customer		8,713,228				8,151,794				8,269,956				8,411,240				8,190,430
Savings-wholesale and institutional		212,964				318,622				399,265				394,357				564,481
Total savings		8,926,192				8,470,416				8,669,221				8,805,597				8,754,911
Time-customer		1,628,856				1,737,723				1,734,971				1,944,884				1,814,335
Time-wholesale		388,950				504,282				633,584				950,929				1,738,934
Total time		2,017,806				2,242,005				2,368,555				2,895,813				3,553,269
Total deposits	$	14,953,216			$	14,956,590			$	15,302,166			$	16,201,714			$	17,100,993
Total customer deposits	$	14,351,302			$	14,133,686			$	14,269,317			$	14,856,428			$	14,797,578
Total wholesale and institutional deposits		601,914				822,904				1,032,849				1,345,286				2,303,415
Total deposits	$	14,953,216			$	14,956,590			$	15,302,166			$	16,201,714			$	17,100,993
(1) Refer to "Non-GAAP Measures" in this earnings release for additional information on the usage and presentation of these non-GAAP measures, and refer to these financial tables for the reconciliations to the most directly comparable GAAP measures.
(2) September 30, 2024 calculation is preliminary.

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
	As of and for the Quarter Ended
	9/30/2024				6/30/2024				3/31/2024				12/31/2023				9/30/2023
Allowance for Credit Losses-Loans
Balance, beginning of period	$	126,861			$	123,934			$	122,566			$	110,208			$	111,198
Provision for credit losses		8,871				9,737				3,668				12,750				2,672
Charge-offs		(32,137	)			(7,388	)			(4,093	)			(3,886	)			(3,964	)
Recoveries		3,202				578				1,793				3,494				302
Balance, end of period	$	106,797			$	126,861			$	123,934			$	122,566			$	110,208
Allowance for Unfunded Commitments
Balance, beginning of period	$	13,057			$	13,786			$	16,468			$	17,480			$	18,636
Provision for credit losses		(2,595	)			(729	)			(2,682	)			(1,012	)			(1,156	)
Balance, end of period	$	10,462			$	13,057			$	13,786			$	16,468			$	17,480
Allowance for lending related credit losses	$	117,259			$	139,918			$	137,720			$	139,034			$	127,688
Provision for Credit Losses
Provision for credit losses-loans	$	8,871			$	9,737			$	3,668			$	12,750			$	2,672
Provision for credit losses-unfunded commitments		(2,595	)			(729	)			(2,682	)			(1,012	)			(1,156	)
Total provision (benefit) for credit losses	$	6,276			$	9,008			$	986			$	11,738			$	1,516
Asset Quality
Nonaccrual loans	$	69,115			$	103,123			$	94,800			$	95,426			$	51,304
Loans past due ninety days or more		832				663				611				2,507				511
Other real estate owned		6,805				7,533				2,590				12,548				14,362
Other repossessed assets		—				—				—				—				1
Total nonperforming assets	$	76,752			$	111,319			$	98,001			$	110,481			$	66,178
Nonperforming Assets Activity
Balance, beginning of period	$	111,319			$	98,001			$	110,481			$	66,178			$	66,097
Net loan (charge-offs) recoveries		(28,935	)			(6,810	)			(2,300	)			(392	)			(3,662	)
New nonperforming loans		25,441				48,346				5,470				61,193				19,295
Reduction of nonperforming loans(1)		(30,240	)			(28,050	)			(5,692	)			(14,278	)			(14,691	)
OREO/Repossessed assets sales proceeds		(833	)			(168	)			(9,958	)			(2,220	)			(861	)
Balance, end of period	$	76,752			$	111,319			$	98,001			$	110,481			$	66,178
Asset Quality Ratios
Ratio of nonperforming loans to total loans		0.61	%			0.89	%			0.82	%			0.81	%			0.44	%
Ratio of nonperforming assets to total assets		0.42				0.59				0.51				0.57				0.33
Annualized ratio of net loan charge-offs (recoveries) to average loans		0.99				0.23				0.08				0.01				0.12
Allowance for loan credit losses as a percent of loans		0.93				1.09				1.06				1.02				0.93
Allowance for lending related credit losses as a percent of loans		1.02				1.21				1.18				1.15				1.08
Allowance for loan credit losses as a percent of nonperforming loans		152.68				122.23				129.89				125.15				212.70
Loans delinquent 30-89 days as a percent of total loans		0.26				0.25				0.31				0.09				0.12
(1) Includes principal reductions, transfers to performing status and transfers to OREO.

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS
	For the Quarter Ended
	September 30, 2024										June 30, 2024										September 30, 2023
	Average Balance				Interest			Rate			Average Balance				Interest			Rate			Average Balance				Interest			Rate
Earning Assets
Securities:
Taxable	$	4,254,529			$	51,116		4.78	%		$	4,490,407			$	47,381		4.24	%		$	5,726,057			$	54,800		3.80	%
Nontaxable(1)		768,483				7,313		3.79				759,234				7,383		3.91				881,162				8,085		3.64
Total securities		5,023,012				58,429		4.63				5,249,641				54,764		4.20				6,607,219				62,885		3.78
Interest on deposits with other banks and short-term investments		355,394				4,193		4.69				194,824				3,045		6.29				142,301				1,651		4.60
Federal funds sold		—				—		—				—				—		—				152				3		7.83
Loans:(2)
Commercial and industrial(1)		3,531,206				65,972		7.43				3,638,004				69,469		7.68				3,610,677				63,001		6.92
PPP loans		1,759				5		1.13				2,242				7		1.26				3,948				11		1.11
Owner occupied commercial real estate		2,527,006				35,189		5.54				2,615,504				37,028		5.69				2,412,501				30,127		4.95
Non-owner occupied commercial real estate		2,474,036				39,536		6.36				2,519,346				39,272		6.27				2,586,011				38,779		5.95
Real estate construction		1,106,387				22,878		8.23				1,093,399				21,770		8.01				1,027,544				19,448		7.51
Agricultural and agricultural real estate		757,745				11,536		6.06				879,707				13,390		6.12				822,957				12,582		6.07
Residential real estate		725,901				9,110		4.99				776,821				9,454		4.89				827,402				9,482		4.55
Consumer		460,959				8,956		7.73				485,266				9,421		7.81				509,024				9,615		7.49
Less: allowance for credit losses		(125,274	)			—		—				(123,319	)			—		—				(110,726	)			—		—
Net loans		11,459,725				193,182		6.71				11,886,970				199,811		6.76				11,689,338				183,045		6.21
Total earning assets		16,838,131				255,804		6.04	%			17,331,435				257,620		5.98	%			18,439,010				247,584		5.33	%
Nonearning Assets		1,601,779										1,711,927										1,768,910
Total Assets	$	18,439,910									$	19,043,362									$	20,207,920
Interest-bearing Liabilities
Savings	$	8,842,494			$	59,307		2.67	%		$	8,834,746			$	55,440		2.52	%		$	8,737,581			$	49,195		2.23	%
Time deposits		2,189,861				23,669		4.30				2,372,653				25,059		4.25				3,945,371				43,549		4.38
Borrowings		580,707				7,378		5.05				881,738				10,825		4.94				103,567				1,167		4.47
Term debt		373,158				5,543		5.91				372,820				5,564		6.00				372,112				5,765		6.15
Total interest-bearing liabilities		11,986,220				95,897		3.18	%			12,461,957				96,888		3.13	%			13,158,631				99,676		3.01	%
Noninterest-bearing Liabilities
Noninterest-bearing deposits		4,116,589										4,355,521										4,824,861
Accrued interest and other liabilities		264,062										251,943										366,905
Total noninterest-bearing liabilities		4,380,651										4,607,464										5,191,766
Stockholders' Equity		2,073,039										1,973,941										1,857,523
Total Liabilities and Stockholders' Equity	$	18,439,910									$	19,043,362									$	20,207,920
Net interest income, fully tax-equivalent (non-GAAP)(1)(3)					$	159,907									$	160,732									$	147,908
Net interest spread(1)								2.86	%									2.85	%									2.32	%
Net interest income, fully tax-equivalent (non-GAAP)(1)(3) to total earning assets								3.78	%									3.73	%									3.18	%
Interest-bearing liabilities to earning assets		71.18	%									71.90	%									71.36	%
(1) Computed on a tax-equivalent basis using an effective tax rate of 21%.
(2) Nonaccrual loans and loans held for sale are included in the average loans outstanding.
(3) Refer to "Non-GAAP Measures" in this earnings release for additional information on the usage and presentation of these non-GAAP measures, and refer to these financial tables for the reconciliations to the most directly comparable GAAP measures.

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS
	For the Nine Months Ended
	September 30, 2024										September 30, 2023
	Average Balance				Interest			Rate			Average Balance				Interest			Rate
Earning Assets
Securities:
Taxable	$	4,469,258			$	145,511		4.35	%		$	5,927,026			$	168,948		3.81	%
Nontaxable(1)		768,782				22,079		3.84				899,613				23,611		3.51
Total securities		5,238,040				167,590		4.27				6,826,639				192,559		3.77
Interest on deposits with other banks and other short-term investments		268,122				10,244		5.10				133,910				4,833		4.83
Federal funds sold		—				—		—				51				3		7.86
Loans:(2)
Commercial and industrial(1)		3,603,668				202,426		7.50				3,547,256				169,552		6.39
PPP loans		2,195				19		1.16				6,718				61		1.21
Owner occupied commercial real estate		2,583,886				107,734		5.57				2,355,545				84,927		4.82
Non-owner occupied commercial real estate		2,514,452				118,657		6.30				2,459,965				105,111		5.71
Real estate construction		1,087,280				65,497		8.05				1,051,298				56,107		7.14
Agricultural and agricultural real estate		838,395				38,682		6.16				835,673				36,191		5.79
Residential mortgage		764,515				28,699		5.01				840,143				28,138		4.48
Consumer		476,967				27,578		7.72				506,143				26,925		7.11
Less: allowance for credit losses-loans		(123,497	)			—		—				(111,434	)			—		—
Net loans		11,747,861				589,292		6.70				11,491,307				507,012		5.90
Total earning assets		17,254,023				767,126		5.94	%			18,451,907				704,407		5.10	%
Nonearning Assets		1,670,839										1,730,901
Total Assets	$	18,924,862									$	20,182,808
Interest-bearing Liabilities
Savings	$	8,828,973			$	169,414		2.56	%		$	9,130,980			$	128,372		1.88	%
Time deposits		2,447,293				78,195		4.27				3,344,434				103,245		4.13
Borrowings		701,548				25,727		4.90				138,157				4,437		4.29
Term debt		372,826				16,956		6.08				372,094				16,756		6.02
Total interest-bearing liabilities		12,350,640				290,292		3.14	%			12,985,665				252,810		2.60	%
Noninterest-bearing Liabilities
Noninterest-bearing deposits		4,306,899										5,092,200
Accrued interest and other liabilities		270,164										284,008
Total noninterest-bearing liabilities		4,577,063										5,376,208
Stockholders' Equity		1,997,159										1,820,935
Total Liabilities and Stockholders' Equity	$	18,924,862									$	20,182,808
Net interest income, fully tax-equivalent (non-GAAP)(1)(3)					$	476,834									$	451,597
Net interest spread(1)								2.80	%									2.50	%
Net interest income, fully tax-equivalent (non-GAAP)(1)(3) to total earning assets								3.69	%									3.27	%
Interest-bearing liabilities to earning assets		71.58	%									70.38	%
(1) Computed on a tax-equivalent basis using an effective tax rate of 21%.
(2) Nonaccrual loans and loans held for sale are included in the average loans outstanding.
(3) Refer to "Non-GAAP Measures" in this earnings release for additional information on the usage and presentation of these non-GAAP measures, and refer to these financial tables for the reconciliations to the most directly comparable GAAP measures.

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA AND FULL TIME EQUIVALENT EMPLOYEE DATA
	For the Quarter Ended
	9/30/2024				6/30/2024				3/31/2024				12/31/2023				9/30/2023
Reconciliation of Annualized Return on Average Tangible Common Equity (non-GAAP)
Earnings available to common stockholders (GAAP)	$	62,140			$	37,730			$	49,694			$	(72,375	)		$	46,078
Plus core deposit intangibles amortization, net of tax(2)		1,022				1,081				1,131				1,229				1,240
Earnings available to common stockholders excluding intangible amortization (non-GAAP)	$	63,162			$	38,811			$	50,825			$	(71,146	)		$	47,318
Average common equity (GAAP)	$	1,962,334			$	1,863,236			$	1,832,959			$	1,729,086			$	1,746,818
Less average goodwill		576,005				576,005				576,005				576,005				576,005
Less average core deposit intangibles, net		14,814				16,185				17,641				19,193				20,821
Average tangible common equity (non-GAAP)	$	1,371,515			$	1,271,046			$	1,239,313			$	1,133,888			$	1,149,992
Annualized return on average common equity (GAAP)		12.60	%			8.14	%			10.90	%		(16.61		)%			10.47	%
Annualized return on average tangible common equity (non-GAAP)		18.32	%			12.28	%			16.49	%		(24.89		)%			16.32	%
Reconciliation of Annualized Net Interest Margin, Fully Tax-Equivalent (non-GAAP)
Net Interest Income (GAAP)	$	157,897			$	158,741			$	154,215			$	156,137			$	145,756
Plus tax-equivalent adjustment(1)		2,010				1,991				1,981				2,058				2,152
Net interest income, fully tax-equivalent (non-GAAP)	$	159,907			$	160,732			$	156,196			$	158,195			$	147,908
Average earning assets	$	16,838,131			$	17,331,435			$	17,597,068			$	17,853,957			$	18,439,010
Annualized net interest margin (GAAP)		3.73	%			3.68	%			3.52	%			3.47	%			3.14	%
Annualized net interest margin, fully tax-equivalent (non-GAAP)		3.78				3.73				3.57				3.52				3.18
Net purchase accounting discount amortization on loans included in annualized net interest margin		0.02				0.01				0.02				0.02				0.01

Reconciliation of Tangible Book Value Per Common Share (non-GAAP)
Common equity (GAAP)	$	2,029,668			$	1,917,145			$	1,868,128			$	1,822,412			$	1,714,825
Less goodwill		576,005				576,005				576,005				576,005				576,005
Less core deposit intangibles, net		14,157				15,501				16,923				18,415				20,026
Tangible common equity (non-GAAP)	$	1,439,506			$	1,325,639			$	1,275,200			$	1,227,992			$	1,118,794
Common shares outstanding, net of treasury stock		42,883,865				42,852,180				42,783,670				42,688,008				42,656,303
Common equity (book value) per share (GAAP)	$	47.33			$	44.74			$	43.66			$	42.69			$	40.20
Tangible book value per common share (non-GAAP)	$	33.57			$	30.94			$	29.81			$	28.77			$	26.23
Reconciliation of Tangible Common Equity Ratio (non-GAAP)
Tangible common equity (non-GAAP)	$	1,439,506			$	1,325,639			$	1,275,200			$	1,227,992			$	1,118,794
Total assets (GAAP)	$	18,272,293			$	18,812,670			$	19,132,827			$	19,411,707			$	20,129,793
Less goodwill		576,005				576,005				576,005				576,005				576,005
Less core deposit intangibles, net		14,157				15,501				16,923				18,415				20,026
Total tangible assets (non-GAAP)	$	17,682,131			$	18,221,164			$	18,539,899			$	18,817,287			$	19,533,762
Tangible common equity ratio (non-GAAP)		8.14	%			7.28	%			6.88	%			6.53	%			5.73	%
(1) Computed on a tax-equivalent basis using an effective tax rate of 21%.
(2) Tax effect is calculated based on the respective periods' year-to-date effective tax rate excluding the impact of discrete items.

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
	For the Quarter Ended
	9/30/2024				6/30/2024				3/31/2024				12/31/2023				9/30/2023
Reconciliation of Adjusted Efficiency Ratio, fully tax-equivalent (non-GAAP)
Net interest income (GAAP)	$	157,897			$	158,741			$	154,215			$	156,137			$	145,756
Tax-equivalent adjustment(1)		2,010				1,991				1,981				2,058				2,152
Fully tax-equivalent net interest income		159,907				160,732				156,196				158,195				147,908
Noninterest income		18,992				18,207				27,663				(111,801	)			28,383
Securities (gains)/losses, net		9,520				10,111				(58	)			140,007				114
Unrealized gain on equity securities, net		(377	)			(133	)			(95	)			(75	)			(13	)
Adjusted revenue (non-GAAP)	$	188,042			$	188,917			$	183,706			$	186,326			$	176,392
Total noninterest expenses (GAAP)	$	85,927			$	116,244			$	113,595			$	130,285			$	111,053
Less:
Core deposit intangibles amortization		1,345				1,421				1,492				1,611				1,625
Partnership investment in tax credit projects		222				222				494				3,573				1,136
(Gain) loss on sales/valuation of assets, net		(26,419	)			193				214				2,072				108
Acquisition, integration and restructuring costs		2,026				5,973				1,375				4,365				2,429
FDIC special assessment		(267	)			(631	)			2,049				8,145				—
Core expenses (non-GAAP)	$	109,020			$	109,066			$	107,971			$	110,519			$	105,755
Efficiency ratio (GAAP)		48.58	%			65.69	%			62.46	%			293.86	%			63.77	%
Adjusted efficiency ratio, fully tax-equivalent (non-GAAP)		57.98	%			57.73	%			58.77	%			59.31	%			59.95	%
Reconciliation of Annualized Ratio of Core Expenses to Average Assets (non-GAAP)
Total noninterest expenses (GAAP)	$	85,927			$	116,244			$	113,595			$	130,285			$	111,053
Core expenses (non-GAAP)		109,020				109,066				107,971				110,519				105,755
Average assets	$	18,439,910			$	19,043,362			$	19,296,638			$	19,667,825			$	20,207,920
Total noninterest expenses to average assets (GAAP)		1.85	%			2.46	%			2.37	%			2.63	%			2.18	%
Core expenses to average assets (non-GAAP)		2.35	%			2.30	%			2.25	%			2.23	%			2.08	%
Acquisition, integration and restructuring costs
Salaries and employee benefits	$	58			$	462			$	168			$	1,425			$	94
Occupancy		—				—				—				1,092				—
Furniture and equipment		52				53				—				19				—
Professional fees		1,674				5,385				931				793				1,617
Advertising		—				—				—				28				178
Other noninterest expenses		242				73				276				1,008				540
Total acquisition, integration and restructuring costs	$	2,026			$	5,973			$	1,375			$	4,365			$	2,429
(1) Computed on a tax-equivalent basis using an effective tax rate of 21%.
HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
	For the Quarter Ended
	9/30/2024				6/30/2024				3/31/2024				12/31/2023				9/30/2023
Reconciliation of Adjusted Earnings
Net income/(loss)	$	64,153			$	39,742			$	51,707			$	(70,363	)		$	48,091
(Gain)/loss from sale of securities		9,520				10,111				(58	)			140,007				114
(Gain)/loss on sales/valuation of assets, net		(26,419	)			193				214				2,072				108
Acquisition, integration and restructuring costs		2,026				5,973				1,375				4,365				2,429
FDIC special assessment		(267	)			(631	)			2,049				8,145				—
Total adjustments		(15,140	)			15,646				3,580				154,589				2,651
Tax effect of adjustments(2)		3,634				(3,739	)			(866	)			(36,638	)			(628	)
Adjusted earnings	$	52,647			$	51,649			$	54,421			$	47,588			$	50,114
Preferred dividends		(2,013	)			(2,012	)			(2,013	)			(2,012	)			(2,013	)
Adjusted earnings available to common stockholders	$	50,634			$	49,637			$	52,408			$	45,576			$	48,101
Plus core deposit intangibles amortization, net of tax(2)		1,022				1,081				1,131				1,229				1,240
Earnings available to common stockholders excluding intangible amortization (non-GAAP)	$	51,656			$	50,718			$	53,539			$	46,805			$	49,341
Reconciliation of Adjusted Annualized Return on Average Assets
Average assets	$	18,439,910			$	19,043,362			$	19,296,638			$	19,667,825			$	20,207,920
Adjusted annualized return on average assets (non-GAAP)		1.14	%			1.09	%			1.13	%			0.96	%			0.98	%
Reconciliation of Adjusted Annualized Return on Average Common Equity
Average common stockholders' equity (GAAP)	$	1,962,334			$	1,863,236			$	1,832,959			$	1,729,086			$	1,746,818
Adjusted annualized average common equity (non-GAAP)		10.27	%			10.71	%			11.50	%			10.46	%			10.92	%
Reconciliation of Adjusted Annualized Return on Average Tangible Common Equity
Average tangible common equity (non-GAAP)	$	1,371,515			$	1,271,046			$	1,239,313			$	1,133,888			$	1,149,992
Adjusted annualized average tangible common equity (non-GAAP)		14.98	%			16.05	%			17.38	%			16.38	%			17.02	%
Reconciliation of Adjusted Diluted Earnings Per Common Share
Weighted average shares outstanding-diluted		43,195,257				43,060,354				42,915,768				42,838,405				42,812,563
Adjusted diluted earnings per common share	$	1.17			$	1.15			$	1.22			$	1.06			$	1.12
(2) Tax effect is calculated based on the respective periods' year-to-date effective tax rate excluding the impact of discrete items.

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,
		2024				2023				2024				2023
Reconciliation of Annualized Return on Average Tangible Common Equity (non-GAAP)
Earnings available to common stockholders (GAAP)	$	62,140			$	46,078			$	149,564			$	144,245
Plus core deposit intangibles amortization, net of tax(2)		1,022				1,240				3,236				3,908
Earnings available to common stockholders excluding intangible amortization (non-GAAP)	$	63,162			$	47,318			$	152,800			$	148,153
Average common equity (GAAP)	$	1,962,334			$	1,746,818			$	1,886,454			$	1,710,230
Less average goodwill		576,005				576,005				576,005				576,005
Less average core deposit intangibles, net		14,814				20,821				16,208				22,501
Average tangible common equity (non-GAAP)	$	1,371,515			$	1,149,992			$	1,294,241			$	1,111,724
Annualized return on average common equity (GAAP)		12.60	%			10.47	%			10.59	%			11.28	%
Annualized return on average tangible common equity (non-GAAP)		18.32	%			16.32	%			15.77	%			17.82	%
Reconciliation of Annualized Net Interest Margin, Fully Tax-Equivalent (non-GAAP)
Net Interest Income (GAAP)	$	157,897			$	145,756			$	470,853			$	445,100
Plus tax-equivalent adjustment(1)		2,010				2,152				5,981				6,497
Net interest income, fully tax-equivalent (non-GAAP)	$	159,907			$	147,908			$	476,834			$	451,597
Average earning assets	$	16,838,131			$	18,439,010			$	17,254,023			$	18,451,907
Annualized net interest margin (GAAP)		3.73	%			3.14	%			3.65	%			3.23	%
Annualized net interest margin, fully tax-equivalent (non-GAAP)		3.78				3.18				3.69				3.27
Net purchase accounting discount amortization on loans included in annualized net interest margin		0.02				0.01				0.02				0.02
(1) Computed on a tax-equivalent basis using an effective tax rate of 21%.
(2) Tax effect is calculated based on the respective periods' year-to-date effective tax rate excluding the impact of discrete items.

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,
		2024				2023				2024				2023
Reconciliation of Adjusted Efficiency Ratio, Fully Tax-Equivalent (non-GAAP)
Net interest income (GAAP)	$	157,897			$	145,756			$	470,853			$	445,100
Tax-equivalent adjustment(1)		2,010				2,152				5,981				6,497
Fully tax-equivalent net interest income		159,907				147,908				476,834				451,597
Noninterest income (GAAP)		18,992				28,383				64,862				90,875
Securities (gains)/losses, net		9,520				114				19,573				1,532
Unrealized gain on equity securities, net		(377	)			(13	)			(605	)			(165	)
Adjusted revenue (non-GAAP)	$	188,042			$	176,392			$	560,664			$	543,839
Total noninterest expenses (GAAP)	$	85,927			$	111,053			$	315,766			$	331,542
Less:
Core deposit intangibles amortization		1,345				1,625				4,258				5,128
Partnership investment in tax credit projects		222				1,136				938				1,828
(Gain)/loss on sales/valuation of assets, net		(26,419	)			108				(26,012	)			(2,149	)
Acquisition, integration and restructuring costs		2,026				2,429				9,374				5,994
FDIC special assessment		(267	)			—				1,151				—
Core expenses (non-GAAP)	$	109,020			$	105,755			$	326,057			$	320,741
Efficiency ratio (GAAP)		48.58	%			63.77	%			58.94	%			61.86	%
Adjusted efficiency ratio, fully tax-equivalent (non-GAAP)		57.98	%			59.95	%			58.16	%			58.98	%
Reconciliation of Annualized Ratio of Core Expenses to Average Assets (non-GAAP)
Total noninterest expenses (GAAP)	$	85,927			$	111,053			$	315,766			$	331,542
Core expenses (non-GAAP)		109,020				105,755				326,057				320,741
Average assets	$	18,439,910			$	20,207,920			$	18,924,862			$	20,182,808
Total noninterest expenses to average assets (GAAP)		1.85	%			2.18	%			2.23	%			2.20	%
Core expenses to average assets (non-GAAP)		2.35	%			2.08	%			2.30	%			2.12	%
Acquisition, integration and restructuring costs
Salaries and employee benefits	$	58			$	94			$	689			$	261
Occupancy		—				—				—				—
Furniture and equipment		52				—				105				—
Professional fees		1,674				1,617				7,990				3,619
Advertising		—				178				—				522
Other noninterest expenses		242				540				590				1,592
Total acquisition, integration and restructuring costs	$	2,026			$	2,429			$	9,374			$	5,994
(1) Computed on a tax-equivalent basis using an effective tax rate of 21%.

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,
		2024				2023				2024				2023
Reconciliation of Adjusted Earnings (non-GAAP)
Net income/(loss)	$	64,153			$	48,091			$	155,602			$	150,283
(Gain)/loss from sale of securities		9,520				114				19,573				1,532
(Gain)/loss on sales/valuation of assets, net		(26,419	)			108				(26,012	)			(2,149	)
Acquisition, integration and restructuring costs		2,026				2,429				9,374				5,994
FDIC special assessment		(267	)			—				1,151				—
Total adjustments		(15,140	)			2,651				4,086				5,377
Tax effect of adjustments(2)		3,634				(628	)			(981	)			(1,280	)
Adjusted earnings	$	52,647			$	50,114			$	158,707			$	154,380
Preferred dividends		(2,013	)			(2,013	)			(6,038	)			(6,038	)
Adjusted earnings available to common stockholders	$	50,634			$	48,101			$	152,669			$	148,342
Plus core deposit intangibles amortization, net of tax(2)		1,022				1,240				3,236				3,908
Earnings available to common stockholders excluding intangible amortization (non-GAAP)	$	51,656			$	49,341			$	155,905			$	152,250
Reconciliation of Adjusted Annualized Return on Average Assets
Average assets	$	18,439,910			$	20,207,920			$	18,924,862			$	20,182,808
Adjusted annualized return on average assets (non-GAAP)		1.14	%			0.98	%			1.12	%			1.02	%
Reconciliation of Adjusted Annualized Return on Average Common Equity
Average common stockholders' equity (GAAP)	$	1,962,334			$	1,746,818			$	1,886,454			$	1,710,230
Adjusted annualized return on average common equity (non-GAAP)		10.27	%			10.92	%			10.81	%			11.60	%
Reconciliation of Adjusted Annualized Return on Average Tangible Common Equity
Average tangible common equity (non-GAAP)	$	1,371,515			$	1,149,992			$	1,294,241			$	1,111,724
Adjusted annualized return on average tangible common equity (non-GAAP)		14.98	%			17.02	%			16.09	%			18.31	%
Reconciliation of Adjusted Diluted Earnings Per Common Share
Weighted average shares outstanding-diluted		43,195,257				42,812,563				43,080,422				42,769,872
Adjusted diluted earnings per common share	$	1.17			$	1.12			$	3.54			$	3.47
(2) Tax effect is calculated based on the respective periods' year-to-date effective tax rate excluding the impact of discrete items.