Heartland Financial USA, Inc. Reports Third Quarter 2009 Earnings

Third Quarter 2009 Highlights

• Net income for the quarter was $3.5 million
• Net interest income increased $4.7 million or 16% over third quarter 2008
• Net interest margin exceeded 4.00%
• Provision for loan losses was $11.9 million compared to $7.1 million in third quarter 2008
• Deposit growth was $304.2 million or 12% since year-end 2008
• Total loans decreased $37.1 million or 2% since year-end 2008
• Galena State Bank acquired The Elizabeth State Bank on July 2, 2009, in a whole bank loss sharing transaction facilitated by the FDIC

• Press Release
• Source: Heartland Financial USA, Inc.
• On 4:00 pm EDT, Monday October 26, 2009

DUBUQUE, Iowa--(BUSINESS WIRE)--Heartland Financial USA, Inc. (NASDAQ: HTLF - News)

		Quarter Ended								Nine Months Ended
		September 30,								September 30,
			2009				2008				2009				2008
Net income (in millions)		$	3.5			$	2.9			$	14.2			$	13.8
Net income available to common stockholders (in millions)			2.2				3.0				10.4				14.0
Diluted earnings per common share			0.13				0.18				0.64				0.85
Return on average assets			0.22	%			0.35	%			0.37	%			0.56	%
Return on average common equity			3.54				5.26				5.81				8.04
Net interest margin			4.06				3.96				3.98				3.92

“Though falling short of our overall expectations, we are pleased to report another profitable quarter. Heartland’s third quarter results reflect very solid core earnings, aided by an exceptional net interest margin of 4.06%. We also continue to benefit from increased mortgage banking revenues, securities gains and our FDIC-assisted acquisition of The Elizabeth State Bank.”

Lynn B. Fuller, chairman, president and chief executive officer, Heartland Financial USA, Inc.

Heartland Financial USA, Inc. (NASDAQ: HTLF - News) today reported net income of $3.5 million for the quarter ended September 30, 2009, compared to net income of $2.9 million earned during the third quarter of 2008. Net income available to common stockholders was $2.2 million, or $0.13 per diluted common share, for the quarter ended September 30, 2009, compared to $3.0 million, or $0.18 per diluted common share, earned during the third quarter of 2008. Return on average common equity was 3.54 percent and return on average assets was 0.22 percent for the third quarter of 2009, compared to 5.26 percent and 0.35 percent, respectively, for the same quarter in 2008.

Net income recorded for the first nine months of 2009 was $14.2 million, compared to $13.8 million recorded during the first nine months of 2008. Net income available to common stockholders was $10.4 million, or $0.64 per diluted common share, for the nine months ended September 30, 2009, compared to $14.0 million, or $0.85 per diluted common share, earned during the first nine months of 2008. Return on average common equity was 5.81 percent and return on average assets was 0.37 percent for the first nine months of 2009, compared to 8.04 percent and 0.56 percent, respectively, for the same period in 2008.

Lynn B. Fuller, Heartland’s chairman, president and chief executive officer said, “Though falling short of our overall expectations, we are pleased to report another profitable quarter. Heartland’s third quarter results reflect very solid core earnings, aided by an exceptional net interest margin of 4.06%. We also continue to benefit from increased mortgage banking revenues, securities gains and our FDIC-assisted acquisition of The Elizabeth State Bank.”

Earnings for the quarter and nine months ended September 30, 2009, were positively affected by increased net interest income, loan servicing income, securities gains and gains on sale of loans. The growth in these areas was partially offset by an increase in the loan loss provision, which was $11.9 million during the third quarter of 2009 compared to $7.1 million during the third quarter of 2008. For the nine-month comparative period, the loan loss provision was $28.6 million during 2009 compared to $14.2 million during 2008. Also negatively affecting earnings during the third quarter and first nine months of 2009 were increased FDIC assessments and expenses associated with other real estate owned.

The Elizabeth State Bank Acquisition

On July 2, 2009, Heartland acquired all deposits of The Elizabeth State Bank in Elizabeth, Illinois through its subsidiary Galena State Bank based in Galena, Illinois in a whole bank loss sharing transaction facilitated by the FDIC. Bank branches previously owned and operated by The Elizabeth State Bank reopened on Monday, July 6, 2009, as Galena State Bank branches. As of July 2, 2009, The Elizabeth State Bank had loans of $42.7 million and deposits of $49.3 million. Galena State Bank paid a premium of 1.0 percent to acquire all of the deposits of the failed bank. In addition to assuming all of the deposits of the failed bank, Galena State Bank agreed to purchase $52.3 million of assets. The FDIC retained the remaining assets for later disposition.

The loans and other real estate owned are covered by two loss share agreements between the FDIC and Galena State Bank, which affords Galena State Bank significant loss protection. Under the loss share agreements, the FDIC will cover 80 percent of the covered loan and other real estate owned losses (referred to as covered assets) up to $10 million and 95 percent of losses in excess of that amount. The term for loss sharing on non-residential real estate losses is five years with respect to losses and eight years with respect to recoveries, while the term for loss-sharing on residential real estate loans is ten years with respect to losses and recoveries. The reimbursable losses from the FDIC are based on the book value of the relevant loan as determined by the FDIC at the date of the transaction. New loans made after that date are not covered by the loss share agreements.

Galena State Bank received a $2.5 million discount on the assets acquired and paid a 1 percent deposit premium. The expected reimbursements under the loss sharing agreements were recorded as an indemnification asset at the estimated fair value of $4.4 million at the acquisition date. The estimated fair value of the loans acquired was $37.8 million and the deposits assumed was $49.5 million. In addition, a core deposit intangible was recorded of $200 thousand. An acquisition gain totaling $998,000 resulted from the acquisition and is included as a component of noninterest income on the statement of income. The amount of the gain is equal to the amount by which the fair value of the liabilities assumed exceeded the fair value of the assets purchased.

Commenting on the acquisition, Fuller said, “The Elizabeth State Bank is precisely the type of growth opportunity we have been seeking. The acquisition strengthens our Galena State Bank subsidiary through increased market share and provides more convenience for current customers.”

Net Interest Margin Improves; Net Interest Income Grows

Net interest margin, expressed as a percentage of average earning assets, was 4.06 percent during the third quarter of 2009 compared to 3.96 percent during the third quarter of 2008. For the nine-month periods ended September 30, net interest margin, expressed as a percentage of average earning assets, was 3.98 percent during 2009 and 3.92 percent during 2008.

Fuller commented, “Heartland’s net interest margin expanded measurably in the third quarter, primarily due to disciplined pricing and lower-trending interest rates. Growing by 14 basis points, margin is now at 4.06% and continues to be a bright spot in the Company’s performance.”

Net interest income on a tax-equivalent basis totaled $35.8 million during the third quarter of 2009, an increase of $4.9 million or 16 percent from the $30.9 million recorded during the third quarter of 2008. For the nine-month period during 2009, net interest income on a tax-equivalent basis was $101.4 million, an increase of $12.0 million or 13 percent from the $89.4 million recorded during the first nine months of 2008. These increases occurred as Heartland’s interest bearing liabilities repriced downward more quickly than its interest bearing assets. Also contributing to these increases was the $396.4 million or 13 percent growth in average earning assets during the third quarter of 2009 compared to the same quarter in 2008 and the $364.8 million or 12 percent growth in average earning assets during the first nine months of 2009 compared to the same nine months of 2008.

On a tax-equivalent basis, interest income in the third quarter of 2009 totaled $53.1 million compared to $52.0 million in the third quarter of 2008, an increase of $1.1 million or 2 percent. For the first nine months of 2009, interest income on a tax-equivalent basis remained consistent at $155.4 million compared to $155.3 million for the same period in 2008. Nearly half of Heartland’s commercial and agricultural loan portfolios consist of floating rate loans that reprice immediately upon a change in the national prime interest rate, thus changes in the national prime rate impact interest income more quickly than if there were more fixed rate loans. The national prime interest rate was 3.25 percent for the first nine months of 2009. During the first nine months of 2008, the national prime interest rate decreased from 7.25 percent on January 1, 2008, to 5.00 percent at September 30, 2008. A large portion of Heartland’s floating rate loans that reprice immediately with a change in national prime have interest rate floors that are currently in effect. Additionally, Heartland had two $50.0 million derivative transactions on the loan portfolio that were at their floor interest rates. One of these derivative transactions matured on April 4, 2009.

Interest expense for the third quarter of 2009 was $17.3 million compared to $21.1 million in the third quarter of 2008, a decrease of $3.8 million or 18 percent. On a nine-month comparative basis, interest expense decreased $11.9 million or 18 percent. Interest rates paid on Heartland’s deposits and borrowings were significantly lower during the first nine months of 2009 compared to the first nine months of 2008. Approximately 40 percent of Heartland’s certificate of deposit accounts will mature within the next six months at a weighted average rate of 2.23 percent.

Noninterest Income Increases; Noninterest Expense Grows

Noninterest income was $11.9 million during the third quarter of 2009 compared to $7.9 million during the third quarter of 2008, an increase of $4.0 million or 51 percent. Included in noninterest income during the third quarter of 2009 was the $998,000 gain on The Elizabeth State Bank acquisition. Included in the third quarter 2008 noninterest income was a $5.2 million gain on the sale of Heartland’s merchant bankcard processing services and a $4.6 million impairment loss recorded on Heartland’s investment in perpetual preferred securities issued by Fannie Mae. For the first nine months of 2009, noninterest income was $39.3 million compared to $24.7 million during the first nine months of 2008, an increase of $14.7 million or 59 percent. The categories experiencing the largest increases for both comparative periods were loan servicing income, securities gains and gains on sale of loans. Loan servicing income increased $662,000 or 61 percent for the quarter and $4.3 million or 119 percent for the nine-month periods under comparison due to an increase in the number of residential real estate loans that Heartland services. The portfolio of mortgage loans serviced for others by Heartland totaled $1.08 billion at September 30, 2009, compared to $703.3 million at September 30, 2008. Securities gains totaled $1.3 million during the third quarter of 2009 compared to $5,000 during the third quarter of 2008. For the nine-month comparative period, securities gains totaled $6.5 million during 2009 compared to $1.0 million during 2008. Securities designed to outperform in a declining rate environment were sold during the first nine months of 2009 and replaced with securities that are expected to outperform as rates rise. Gains on sale of loans totaled $877,000 during the third quarter of 2009 compared to $295,000 during the third quarter of 2008. For the first nine months of 2009, gains on sale of loans totaled $4.9 million compared to $1.3 million for the first nine months of 2008. As long-term mortgage loan rates fell below 5.00 percent during the first half of 2009, refinancing activity significantly increased on 15- and 30-year, fixed-rate mortgage loans. Heartland normally elects to sell these types of loans into the secondary market and retains the servicing on these loans.

Fuller stated, “Noninterest income continues to help offset higher provision expense. Residential loan refinance activity has slowed from the first two quarters this year, but continues to out-pace last year. Also contributing to the increase in noninterest income is loan servicing income, securities gains and the gain on our acquisition of The Elizabeth State Bank.”

For the third quarter of 2009, noninterest expense totaled $30.3 million, an increase of $3.6 million or 13 percent from the same period in 2008. This increase was primarily attributable to higher FDIC assessments, which totaled $1.4 million during the third quarter of 2009 compared to $384,000 during the third quarter of 2008, and net losses on repossessed assets, which totaled $3.7 million during the third quarter of 2009 compared to $327,000 during the third quarter of 2008. For the nine-month period ended September 30, 2009, noninterest expense totaled $89.1 million, an increase of $11.0 million or 14 percent when compared to the same nine-month period in 2008. The noninterest expense categories to experience a significant increase during the nine-month periods under comparison were FDIC assessments, which were $5.3 million during the first nine months of 2009 compared to $955,000 during the first nine months of 2008, and net losses on repossessed assets, which were $6.8 million during the first nine months of 2009 compared to $517,000 during the first nine months of 2008. Salaries and employee benefits, increased $1.6 million or 4 percent during the nine-month comparative period, primarily due to the opening of Minnesota Bank & Trust in April 2008 and additional staffing at Summit Bank & Trust and New Mexico Bank & Trust to grow its customer base, at Heartland’s operations center to provide support services to the bank subsidiaries and at Galena State Bank as a result of The Elizabeth State Bank acquisition. Total full-time equivalent employees averaged 1,029 during the first nine months of 2009, compared to 1,002 during the first nine months of 2008.

Heartland’s effective tax rate was 27.61 percent for the first nine months of 2009 compared to 26.97 percent for the first nine months of 2008. Heartland’s effective tax rate during the first nine months of 2009 did not include any federal rehabilitation tax credits, whereas Heartland’s effective tax rate during the first nine months of 2008 included $247,000 in federal rehabilitation tax credits associated with Dubuque Bank and Trust Company’s ownership interests in limited liability companies that own certified historic structures. Heartland’s effective tax rate is also affected by the level of tax-exempt interest income which, as a percentage of pre-tax income, was 31.38 percent during the first nine months of 2009 compared to 28.44 percent during the first nine months of 2008. The tax-equivalent adjustment for this tax-exempt interest income was $3.3 million during the first nine months of 2009 compared to $2.9 million during the same nine months in 2008.

Loan Demand Slows; Growth in Deposits Continues

At September 30, 2009, total assets had increased $249.3 million or 9 percent annualized since year-end 2008. Total loans and leases, exclusive of those covered by the FDIC loss share agreements, were $2.37 billion at September 30, 2009, compared to $2.41 billion at year-end 2008, a decrease of $37.1 million or 2 percent annualized. The only loan category to experience growth during the first nine months of 2009 was agricultural and agricultural real estate loans. Nearly all of this growth occurred at Dubuque Bank and Trust Company. Total loans and leases decreased $7.2 million during the third quarter of 2009 compared to an increase of $18.6 million during the second quarter of 2009 and a decrease of $48.6 million during the first quarter of 2009.

Total deposits grew to $2.94 billion at September 30, 2009, an increase of $304.2 million or 15 percent annualized since year-end 2008. The Elizabeth State Bank acquisition accounted for $49.5 million of this growth. With the exception of First Community Bank, Wisconsin Community Bank and Rocky Mountain Bank, all Heartland banks experienced a significant increase in deposits. This growth was weighted more heavily in Heartland’s Western markets, which were responsible for nearly 55 percent of the growth. Demand deposits increased $68.6 million or 24 percent annualized since year-end 2008 with $6.9 million coming from The Elizabeth State Bank acquisition. Savings deposit balances experienced an increase of $257.7 million or 30 percent annualized since year-end 2008 with $21.0 million coming from The Elizabeth State Bank acquisition. Time deposits, exclusive of brokered deposits, experienced a decrease of $14.1 million or 2 percent annualized since year-end 2008 despite the $21.6 million assumed in The Elizabeth State Bank acquisition. At September 30, 2009, brokered time deposits totaled $43.5 million or 1 percent of total deposits compared to $51.5 million or 2 percent of total deposits at year-end 2008. Deposit growth, exclusive of The Elizabeth State Bank acquisition, was $67.4 million during the third quarter of 2009 compared to $38.8 million during the second quarter of 2009 and $148.5 million during the first quarter of 2009.

“I am extremely pleased with our continued success in executing our strategic initiative to focus on non-maturity core deposit growth versus higher-cost certificates of deposit. Going forward, we will develop and execute strategies that reward our certificate customers based on their overall banking relationship,” commented Fuller.

Nonperforming Assets Increase

The allowance for loan and lease losses at September 30, 2009, was 1.78 percent of loans and leases and 50.31 percent of nonperforming loans, compared to 1.57 percent of loans and leases and 52.32 percent of nonperforming loans at June 30, 2009 and 1.48 percent of loans and leases and 45.73 percent of nonperforming loans at December 31, 2008. The first nine months of 2009 provision for loan losses was $28.6 million compared to $14.2 million for the first nine months of 2008. Additions to the allowance for loan and lease losses during the first nine months of 2009 were driven by a variety of factors including deterioration of economic conditions, downgrades in internal risk ratings, reductions in appraised values and higher levels of charge-offs, primarily in Heartland’s Western markets of Arizona, Montana and Colorado.

Nonperforming loans, exclusive of those covered under the loss sharing agreements, were $84.0 million or 3.55 percent of total loans and leases at September 30, 2009, compared to $71.1 million or 3.00 percent of total loans and leases at June 30, 2009, and $78.0 million or 3.24 percent of total loans and leases at December 31, 2008. Approximately 65 percent, or $55.0 million, of Heartland’s nonperforming loans are to 19 borrowers, with $14.7 million originated by Arizona Bank & Trust, $11.7 million originated by Rocky Mountain Bank, $9.1 million originated by Summit Bank & Trust, $7.3 million originated by Wisconsin Community Bank, $6.5 million originated by New Mexico Bank & Trust, $3.3 million originated by Riverside Community Bank and $2.4 million originated by Dubuque Bank and Trust. The portion of Heartland’s nonperforming loans covered by government guarantees was $3.8 million at September 30, 2009.

Other real estate owned, exclusive of assets covered under the loss sharing agreements, was $32.6 million at September 30, 2009, compared to $29.3 million at June 30, 2009, and $11.8 million at December 31, 2008. The majority of the increase during 2009 occurred during the first quarter with $12.0 million attributable to a residential lot development loan originated at Rocky Mountain Bank. Liquidation strategies have been identified for all the assets held in other real estate owned. Management plans to market these properties under an orderly liquidation process instead of under a quick liquidation process which would most likely result in discounts greater than the projected carrying costs.

Net charge-offs during the first nine months of 2009 were $22.0 million compared to $12.4 million during the first nine months of 2008. A large portion of the net charge-offs was related to commercial real estate development loans and residential lot loans, primarily in the Phoenix, Arizona market.

“With nonperforming assets rising by $15 million during the quarter, the reduction of nonperforming assets clearly continues as our number one priority. As with others in our industry, we remain dependent on the direction of the economies in the markets we serve,” Fuller said.

Conference Call Details

Heartland will host a conference call for investors at 5:00 p.m. EDT today. To participate, dial 877-941-6010 at least five minutes before start time, or log onto www.htlf.com. If you are unable to participate on the call, a replay will be available until January 26, 2010, by dialing 800-406-7325, pass code 4172485, or by logging onto www.htlf.com.

About Heartland Financial USA, Inc.

Heartland Financial USA, Inc. is a $3.9 billion diversified financial services company providing banking, mortgage, wealth management, insurance and consumer finance services to individuals and businesses. Heartland currently has 63 banking locations in 42 communities in Iowa, Illinois, Wisconsin, New Mexico, Arizona, Montana, Colorado and Minnesota. Additional information about Heartland Financial USA, Inc. is available at www.htlf.com.

Safe Harbor Statement

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

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
		For the Quarter Ended								For the Nine Months Ended
		September 30,								September 30,
		2009				2008				2009				2008
Interest Income
Interest and fees on loans and leases		$	38,790			$	40,990			$	116,696			$	124,444
Interest on securities and other:
Taxable			10,809				8,228				29,269				22,728
Nontaxable			2,231				1,670				6,139				4,996
Interest on federal funds sold			-				85				1				267
Interest on deposits in other financial institutions			17				3				18				10
Total Interest Income			51,847				50,976				152,123				152,445
Interest Expense
Interest on deposits			13,046				15,622				40,744				48,375
Interest on short-term borrowings			154				776				539				4,049
Interest on other borrowings			4,065				4,692				12,803				13,562
Total Interest Expense			17,265				21,090				54,086				65,986
Net Interest Income			34,582				29,886				98,037				86,459
Provision for loan and lease losses			11,896				7,083				28,602				14,213
Net Interest Income After Provision for Loan and Lease Losses			22,686				22,803				69,435				72,246
Noninterest Income
Service charges and fees			3,288				3,125				9,284				8,620
Loan servicing income			1,756				1,094				7,853				3,585
Trust fees			1,949				2,070				5,617				6,159
Brokerage and insurance commissions			824				942				2,420				2,717
Securities gains, net			1,291				5				6,462				1,015
Gain (loss) on trading account securities			210				(33	)			272				(467	)
Impairment loss on securities			-				(4,688	)			-				(4,804	)
Gains on sale of loans			877				295				4,916				1,279
Income (loss) on bank owned life insurance			297				(247	)			640				596
Gain on acquisition			998				-				998				-
Gain on sale of merchant bankcard processing services			-				5,200				-				5,200
Other noninterest income			418				117				872				772
Total Noninterest Income			11,908				7,880				39,334				24,672
Noninterest Expense
Salaries and employee benefits			14,661				15,000				46,046				44,459
Occupancy			2,221				2,262				6,772				6,799
Furniture and equipment			1,594				1,662				4,936				5,201
Professional fees			2,706				2,712				7,027				7,299
FDIC assessments			1,393				384				5,258				955
Advertising			740				1,012				2,272				2,853
Other intangibles amortization			199				236				668				708
Net loss on repossessed assets			3,680				327				6,832				517
Other noninterest expenses			3,129				3,142				9,275				9,290
Total Noninterest Expense			30,323				26,737				89,086				78,081
Income Before Income Taxes			4,271				3,946				19,683				18,837
Income taxes			803				1,018				5,434				5,081
Net Income		$	3,468			$	2,928			$	14,249			$	13,756
Net income attributable to noncontrolling interest, net of tax			44				77				147				219
Net Income Attributable to Heartland			3,512				3,005				14,396				13,975
Preferred dividends and discount			(1,336	)			-				(4,008	)			-
Net Income Available to Common Stockholders		$	2,176			$	3,005			$	10,388			$	13,975
Earnings per common share-diluted		$	0.13			$	0.18			$	0.64			$	0.85
Weighted average shares outstanding-diluted			16,340,092				16,355,393				16,320,205				16,392,321

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
		For the Quarter Ended
		9/30/2009				6/30/2009				3/31/2009				12/31/2008				9/30/2008
Interest Income
Interest and fees on loans and leases		$	38,790			$	38,423			$	39,483			$	39,905			$	40,990
Interest on securities and other:
Taxable			10,809				10,039				8,421				8,503				8,228
Nontaxable			2,231				2,025				1,883				1,692				1,670
Interest on federal funds sold			-				-				1				32				85
Interest on deposits in other financial institutions			17				-				1				8				3
Total Interest Income			51,847				50,487				49,789				50,140				50,976
Interest Expense
Interest on deposits			13,046				13,576				14,122				15,729				15,622
Interest on short-term borrowings			154				173				212				522				776
Interest on other borrowings			4,065				4,360				4,378				4,662				4,692
Total Interest Expense			17,265				18,109				18,712				20,913				21,090
Net Interest Income			34,582				32,378				31,077				29,227				29,886
Provision for loan and lease losses			11,896				10,041				6,665				15,106				7,083
Net Interest Income After Provision for Loan and Lease Losses			22,686				22,337				24,412				14,121				22,803
Noninterest Income
Service charges and fees			3,288				3,109				2,887				3,034				3,125
Loan servicing income			1,756				3,311				2,786				1,015				1,094
Trust fees			1,949				1,971				1,697				1,747				2,070
Brokerage and insurance commissions			824				715				881				1,002				942
Securities gains, net			1,291				2,206				2,965				510				5
Gain (loss) on trading account securities			210				348				(286	)			(531	)			(33	)
Impairment loss on securities			-				-				-				(347	)			(4,688	)
Gains on sale of loans			877				2,231				1,808				331				295
Income (loss) on bank owned life insurance			297				213				130				(1,780	)			(247	)
Gain on acquisition			998				-				-				-				-
Gain on sale of merchant bankcard processing services			-				-				-				-				5,200
Other noninterest income			418				560				(106	)			543				117
Total Noninterest Income			11,908				14,664				12,762				5,524				7,880
Noninterest Expense
Salaries and employee benefits			14,661				14,952				16,433				12,293				15,000
Occupancy			2,221				2,176				2,375				2,220				2,262
Furniture and equipment			1,594				1,695				1,647				1,767				1,662
Professional fees			2,706				2,151				2,170				2,577				2,712
FDIC assessments			1,393				2,818				1,047				491				384
Advertising			740				949				583				909				1,012
Other intangibles amortization			199				234				235				235				236
Net loss on repossessed assets			3,680				2,532				620				310				327
Other noninterest expenses			3,129				2,970				3,176				3,356				3,142
Total Noninterest Expense			30,323				30,477				28,286				24,158				26,737
Income (Loss) Before Income Taxes			4,271				6,524				8,888				(4,513	)			3,946
Income taxes			803				1,812				2,819				(1,769	)			1,018
Net Income (Loss)		$	3,468			$	4,712			$	6,069			$	(2,744	)		$	2,928
Net income available to noncontrolling interest, net of tax			44				44				59				61				77
Net Income (Loss) Attributable to Heartland		$	3,512			$	4,756			$	6,128			$	(2,683	)		$	3,005
Preferred dividends and discount			(1,336	)			(1,336	)			(1,336	)			(178	)			-
Net Income (Loss) Available to Common Stockholders		$	2,176			$	3,420			$	4,792			$	(2,861	)		$	3,005
Earnings (loss) per common share-diluted		$	0.13			$	0.21			$	0.29			$	(0.18	)		$	0.18
Weighted average shares outstanding-diluted			16,340,092				16,323,724				16,296,839				16,324,106				16,355,393

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
		As Of
		9/30/2009			6/30/2009			3/31/2009			12/31/2008			9/30/2008
Assets
Cash and cash equivalents		$	82,508		$	39,961		$	87,261		$	51,303		$	67,074
Securities			1,105,744			1,061,211			1,006,172			903,705			760,143
Loans held for sale			19,923			24,339			18,263			19,695			9,812
Loans and leases:
Held to maturity			2,367,871			2,375,027			2,356,391			2,405,001			2,364,259
Loans covered by loss share agreements			36,175			-			-			-			-
Allowance for loan and lease losses			(42,260)			(37,234)			(37,277)			(35,651)			(34,845)
Loans and leases, net			2,361,786			2,337,793			2,319,114			2,369,350			2,329,414
Premises, furniture and equipment, net			117,140			117,914			119,569			120,500			120,225
Goodwill			40,207			40,207			40,207			40,207			40,207
Other intangible assets, net			12,101			11,591			9,606			8,079			8,332
Cash surrender value on life insurance			55,141			54,817			54,581			54,431			55,684
Other real estate, net			33,342			29,311			29,317			11,750			9,387
FDIC indemnification asset			4,393			-			-			-			-
Other assets			47,328			49,587			46,010			51,248			45,704
Total Assets		$	3,879,613		$	3,766,731		$	3,730,100		$	3,630,268		$	3,445,982
Liabilities and Equity
Liabilities
Deposits:
Demand		$	451,645		$	436,985		$	409,921		$	383,061		$	373,193
Savings			1,386,059			1,259,861			1,185,756			1,128,312			1,042,364
Brokered time deposits			43,473			45,322			44,631			51,474			81,895
Other time deposits			1,063,237			1,085,335			1,148,413			1,077,385			1,070,455
Total deposits			2,944,414			2,827,503			2,788,721			2,640,232			2,567,907
Short-term borrowings			111,346			132,301			117,766			210,184			176,543
Other borrowings			457,444			457,508			477,640			437,833			440,146
Accrued expenses and other liabilities			38,044			31,459			30,496			33,396			32,993
Total Liabilities			3,551,248			3,448,771			3,414,623			3,321,645			3,217,589
Equity
Preferred equity			76,909			76,594			76,279			75,578			-
Common equity			248,583			238,449			236,237			230,025			225,312
Total Heartland Stockholders’ Equity			325,492			315,043			312,516			305,603			225,312
Noncontrolling interest			2,873			2,917			2,961			3,020			3,081
Total Equity			328,365			317,960			315,477			308,623			228,393
Total Liabilities and Equity		$	3,879,613		$	3,766,731		$	3,730,100		$	3,630,268		$	3,445,982
Common Share Data
Book value per common share		$	15.23		$	14.62		$	14.50		$	14.13		$	13.86
FAS 115 effect on book value per common share		$	0.62		$	(0.02)		$	.10		$	(0.13)		$	(0.28)
Common shares outstanding, net of treasury stock			16,321,953			16,310,825			16,294,828			16,274,490			16,252,891
Tangible Capital Ratio(1)			5.35%			5.24%			5.23%			5.19%			5.33%

⁽¹⁾ Total common stockholders’ equity less goodwill and intangible assets (excluding mortgage servicing rights) divided by total assets less intangible assets (excluding mortgage servicing rights).

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
		For the Quarters Ended						For the Nine Months Ended
		9/30/2009			9/30/2008			9/30/2009			9/30/2008
Average Balances
Assets		$	3,853,658		$	3,399,199		$	3,758,622		$	3,341,205
Loans and leases, net of unearned			2,430,161			2,339,539			2,412,778			2,303,522
Deposits			2,912,325			2,499,988			2,792,322			2,411,862
Earning assets			3,496,607			3,100,208			3,408,798			3,043,976
Interest bearing liabilities			3,041,502			2,750,004			2,981,723			2,700,151
Common stockholders’ equity			243,542			227,111			239,206			232,087
Total stockholder’s equity			323,040			227,111			318,361			232,087
Tangible common stockholders’ equity			200,370			183,012			195,806			185,764
Earnings Performance Ratios
Annualized return on average assets			0.22%			0.35%			0.37%			0.56%
Annualized return on average common equity			3.54%			5.26%			5.81%			8.04%
Annualized return on average common tangible equity			4.31%			6.65%			7.09%			10.05%
Annualized net interest margin(1)			4.06%			3.96%			3.98%			3.92%
Efficiency ratio(2)			65.55%			68.79%			66.37%			68.90%

⁽¹⁾ Tax equivalent basis is calculated using an effective tax rate of 35%

⁽²⁾ Noninterest expense divided by the sum of net interest income and noninterest income less net security gains

		For the Quarters Ended
		9/30/2009			6/30/2009			3/31/2009			12/31/2008			9/30/2008
Average Balances
Assets		$	3,853,658		$	3,763,003		$	3,659,204		$	3,492,105		$	3,399,199
Loans and leases, net of unearned			2,430,161			2,384,568			2,423,605			2,396,816			2,339,539
Deposits			2,912,325			2,790,322			2,674,320			2,587,372			2,499,988
Earning assets			3,496,607			3,420,233			3,309,556			3,177,472			3,100,208
Interest bearing liabilities			3,041,502			2,984,903			2,918,763			2,837,795			2,750,004
Common stockholders’ equity			243,542			238,878			235,200			222,509			227,111
Total stockholders’ equity			323,040			318,077			313,968			233,824			227,111
Tangible common stockholders’ equity			200,370			195,483			191,577			178,645			183,012
Earnings Performance Ratios
Annualized return on average assets			0.22%			0.36%			0.53%			(0.33)%			0.35%
Annualized return on average common equity			3.54%			5.74%			8.26%			(5.12)%			5.26%
Annualized return on average common tangible equity			4.31%			7.02%			10.14%			(6.48)%			6.65%
Annualized net interest margin(1)			4.06%			3.92%			3.94%			3.79%			3.96%
Efficiency ratio(2)			65.55%			66.40%			67.48%			68.37%			68.79%

⁽¹⁾ Tax equivalent basis is calculated using an effective tax rate of 35%

⁽²⁾ Noninterest expense divided by the sum of net interest income and noninterest income less net security gains

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
		As of and For			As of and For			As of and For			As of and For			As of and For
		The Quarter			The Quarter			The Quarter			The Quarter			The Quarter
		Ended			Ended			Ended			Ended			Ended
		9/30/2009			6/30/2009			3/31/2009			12/31/2008			9/30/2008
Loan and Lease Data
Loans held to maturity:
Commercial and commercial real estate		$	1,694,589		$	1,701,933		$	1,673,882		$	1,718,071		$	1,672,372
Residential mortgage			184,292			187,016			190,179			203,921			219,662
Agricultural and agricultural real estate			257,738			255,340			259,320			247,664			245,355
Consumer			233,259			231,986			232,507			234,061			224,474
Direct financing leases, net			2,882			3,615			4,989			5,829			6,689
Unearned discount and deferred loan fees			(4,889)			(4,863)			(4,486)			(4,545)			(4,293)
Total loans and leases held to maturity		$	2,367,871		$	2,375,027		$	2,356,391		$	2,405,001		$	2,364,259
Loans covered under loss share agreements:
Commercial and commercial real estate		$	13,993		$	-		$	-		$	-		$	-
Residential mortgage			12,338			-			-			-			-
Agricultural and agricultural real estate			5,934			-			-			-			-
Consumer			3,910			-			-			-			-
Total loans and leases covered under loss share agreements		$	36,175		$	-		$	-		$	-		$	-
Asset Quality
Not covered under loss share agreements:
Nonaccrual loans		$	78,940		$	71,116		$	67,140		$	76,953		$	43,523
Loans and leases past due ninety days or more as to interest or principal payments			5,063			54			-			1,005			347
Other real estate owned			32,643			29,311			29,317			11,750			9,387
Other repossessed assets			565			1,477			1,501			1,484			520
Total nonperforming assets not covered under loss share agreements		$	117,211		$	101,958		$	97,958		$	91,192		$	53,777
Covered under loss share agreements:
Nonaccrual loans		$	4,102			-		$	-		$	-		$	-
Loans and leases past due ninety days or more as to interest or principal payments			-			-			-			-			-
Other real estate owned			599			-			-			-			-
Other repossessed assets			-			-			-			-			-
Total nonperforming assets covered under loss share agreements		$	4,701		$	-		$	-		$	-		$	-
Allowance for Loan and Lease Losses
Balance, beginning of period		$	37,234		$	37,277		$	35,651		$	34,845		$	34,931
Provision for loan and lease losses			11,896			10,041			6,665			15,106			7,083
Loans charged off			(7,465)			(10,406)			(5,635)			(14,412)			(7,459)
Recoveries			595			322			596			112			290
Balance, end of period		$	42,260		$	37,234		$	37,277		$	35,651		$	34,845
Asset Quality Ratios Excluding Assets Covered Under Loss Share Agreements
Ratio of nonperforming loans and leases to total loans and leases			3.55%			3.00%			2.85%			3.24%			1.86%
Ratio of nonperforming assets to total assets			3.02%			2.71%			2.63%			2.51%			1.56%
Annualized ratio of net loan charge-offs to average loans and leases			1.12%			1.70%			0.84%			2.37%			1.22%
Allowance for loan and lease losses as a percent of loans and leases			1.78%			1.57%			1.58%			1.48%			1.47%
Allowance for loan and lease losses as a percent of nonperforming loans and leases			50.31%			52.32%			55.52%			45.73%			79.43%

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS
			For the Quarters Ended
		9/30/2009										9/30/2008
		Average										Average
		Balance				Interest			Rate			Balance				Interest			Rate
Earning Assets
Securities:
Taxable		$	904,721			$	10,810		4.74	%		$	622,376			$	8,228		5,26	%
Nontaxable(1)			194,621				3,246		6.62	%			153,996				2,441		6.31	%
Total securities			1,099,342				14,056		5.07	%			776,372				10,669		5.47	%
Interest bearing deposits			4,845				15		1.23	%			654				3		1.82	%
Federal funds sold			179				-		0.00	%			18,419				85		1.84	%
Loans and leases:
Commercial and commercial real estate(1)			1,716,855				25,399		5.87	%			1,651,002				26,910		6.48	%
Residential mortgage			213,799				3,056		5.67	%			223,267				3,570		6.36	%
Agricultural and agricultural real estate(1)			262,241				4,231		6.40	%			241,541				4,191		6.90	%
Consumer			233,905				5,134		8.71	%			216,651				5,081		9.33	%
Direct financing leases, net			3,361				48		5.67	%			7,078				105		5.90	%
Fees on loans			-				1,128		-				-				1,356		-
Less: allowance for loan and lease losses			(37,920)				-		-				(34,776)				-		-
Net loans and leases			2,392,241				38,996		6.47	%			2,304,763				41,213		7.11	%
Total earning assets			3,496,607				53,067		6.02	%			3,100,208				51,970		6.67	%
Nonearning Assets			357,051										298,991
Total Assets		$	3,853,658			$	53,067					$	3,399,199			$	51,970
Interest Bearing Liabilities
Interest bearing deposits
Savings		$	1,329,415			$	4,690		1.40	%		$	981,108			$	4,777		1.94	%
Time, $100,000 and over			366,573				2,655		2.87	%			374,170				3,527		3.75	%
Other time deposits			760,816				5,701		2.97	%			759,999				7,318		3.83	%
Short-term borrowings			125,863				154		0.49	%			184,800				776		1.67	%
Other borrowings			458,835				4,065		3.51	%			449,927				4,692		4.15	%
Total interest bearing liabilities			3,041,502				17,265		2.25	%			2,750,004				21,090		3.05	%
Noninterest Bearing Liabilities
Noninterest bearing deposits			455,521										384,711
Accrued interest and other liabilities			33,595										37,373
Total noninterest bearing liabilities			489,116										422,084
Stockholders’ Equity			323,040										227,111
Total Liabilities and Stockholders’ Equity		$	3,853,658			$	17,265					$	3,399,199			$	21,090
Net interest income(1)						$	35,802									$	30,880
Net interest spread(1)									3.77	%									3.62	%
Net interest income to total earning assets(1)									4.06	%									3.96	%
Interest bearing liabilities to earning assets			86.98	%									88.70	%
(1) Tax equivalent basis is calculated using an effective tax rate of 35%.

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS
		For the Nine Months Ended
		9/30/2009										9/30/2008
		Average										Average
		Balance				Interest			Rate			Balance				Interest			Rate
Earning Assets
Securities:
Taxable		$	852,192			$	29,269		4.59	%		$	607,082			$	22,728		5.00	%
Nontaxable(1)			177,734				8,845		6.65	%			150,803				7,330		6.49	%
Total securities			1,029,926				38,114		4.95	%			757,885				30,058		5.30	%
Interest bearing deposits			2,402				18		1.00	%			494				10		2.70	%
Federal funds sold			368				1		0.36	%			15,579				267		2.29	%
Loans and leases:
Commercial and commercial real estate(1)			1,695,755				76,633		6.04	%			1,629,584				82,133		6.73	%
Residential mortgage			222,577				9,730		5.84	%			222,359				10,779		6.48	%
Agricultural and agricultural real estate(1)			258,528				12,547		6.49	%			236,537				12,855		7.26	%
Consumer			231,510				15,145		8.75	%			207,116				14,909		9.62	%
Direct financing leases, net			4,408				176		5.34	%			7,926				353		5.95	%
Fees on loans			-				3,085		-				-				3,966		-
Less: allowance for loan and lease losses			(36,676	)			-		-				(33,504	)			-		-
Net loans and leases			2,376,102				117,316		6.60	%			2,270,018				124,995		7.36	%
Total earning assets			3,408,798				155,449		6.10	%			3,043,976				155,330		6.82	%
Nonearning Assets			349,824										297,229
Total Assets		$	3,758,622			$	155,449					$	3,341,205			$	155,330
Interest Bearing Liabilities
Interest bearing deposits
Savings		$	1,219,645			$	13,782		1.51	%		$	895,057			$	12,575		1.88	%
Time, $100,000 and over			383,783				8,858		3.09	%			326,038				10,091		4.13	%
Other time deposits			764,558				18,104		3.17	%			821,894				25,709		4.18	%
Short-term borrowings			146,430				539		0.49	%			246,735				4,049		2.19	%
Other borrowings			467,307				12,803		3.66	%			410,427				13,562		4.41	%
Total interest bearing liabilities			2,981,723				54,086		2.43	%			2,700,151				65,986		3.26	%
Noninterest Bearing Liabilities
Noninterest bearing deposits			424,336										368,873
Accrued interest and other liabilities			34,202										40,094
Total noninterest bearing liabilities			458,538										408,967
Stockholders’ Equity			318,361										232,087
Total Liabilities and Stockholders’ Equity		$	3,758,622			$	54,086					$	3,341,205			$	65,986
Net interest income(1)						$	101,363									$	89,344
Net interest spread(1)									3.67	%									3.55	%
Net interest income to total earning assets(1)									3.98	%									3.92	%
Interest bearing liabilities to earning assets			87.47	%									88.70	%
(1) Tax equivalent basis is calculated using an effective tax rate of 35%.

HEARTLAND FINANCIAL USA, INC.
SELECTED FINANCIAL DATA – SUBSIDIARY BANKS (Unaudited)
DOLLARS IN THOUSANDS
			As of and				As of and				As of and				As of and				As of and
			For the				For the				For the				For the				For the
			Qtr. Ended				Qtr. Ended				Qtr. Ended				Qtr. Ended				Qtr. Ended
			9/30/2009				6/30/2009				3/31/2009				12/31/2008				9/30/2008
Total Assets
Dubuque Bank and Trust Company		$	1,104,217			$	1,097,161			$	1,107,204			$	1,041,247			$	1,021,965
New Mexico Bank & Trust			785,146				791,019				762,980				773,726				741,438
Rocky Mountain Bank			468,695				470,220				481,577				476,762				461,356
Wisconsin Community Bank			433,900				434,362				427,734				429,707				403,252
Galena State Bank & Trust Co.			288,501				231,655				228,711				222,886				229,959
Riverside Community Bank			277,639				270,354				254,965				244,613				244,500
Arizona Bank & Trust			268,600				251,562				227,840				219,830				218,730
First Community Bank			121,938				125,069				123,785				123,058				120,606
Summit Bank & Trust			99,724				91,211				78,892				77,638				70,755
Minnesota Bank & Trust			39,283				34,547				30,625				25,695				19,430
Total Deposits
Dubuque Bank and Trust Company		$	815,553			$	798,927			$	806,425			$	749,250			$	707,646
New Mexico Bank & Trust			563,414				552,650				535,753				507,561				538,453
Rocky Mountain Bank			364,570				364,159				375,708				370,630				344,104
Wisconsin Community Bank			338,328				330,327				336,670				338,025				317,244
Galena State Bank & Trust Co.			244,389				196,035				193,697				185,042				196,007
Riverside Community Bank			226,791				220,097				209,176				197,785				188,280
Arizona Bank & Trust			215,092				198,310				176,393				155,909				162,494
First Community Bank			99,351				99,772				100,441				102,515				100,019
Summit Bank & Trust			89,130				79,991				66,259				60,278				46,411
Minnesota Bank & Trust			24,364				18,477				15,598				10,459				3,898
Net Income (Loss)
Dubuque Bank and Trust Company		$	3,863			$	4,144			$	3,787			$	1,962			$	4,147
New Mexico Bank & Trust			1,955				1,434				3,257				704				2,936
Rocky Mountain Bank			(463	)			204				724				(1,021	)			859
Wisconsin Community Bank			1,198				1,464				1,011				(649	)			458
Galena State Bank & Trust Co.			962				513				905				239				686
Riverside Community Bank			283				(326	)			502				(204	)			563
Arizona Bank & Trust			(1,227	)			(1,151	)			(2,695	)			(791	)			(1,078	)
First Community Bank			101				(209	)			316				2				76
Summit Bank & Trust			(1,366	)			(1,169	)			(432	)			(579	)			(1,210	)
Minnesota Bank & Trust			(221	)			(225	)			(291	)			(304	)			(385	)
Return on Average Assets
Dubuque Bank and Trust Company			1.40	%			1.50	%			1.43	%			0.77	%			1.61	%
New Mexico Bank & Trust			0.99				0.73				1.72				0.38				1.64
Rocky Mountain Bank			(0.39	)			0.17				0.61				(0.87	)			0.75
Wisconsin Community Bank			1.09				1.35				0.95				(0.62	)			0.45
Galena State Bank & Trust Co.			1.34				0.90				1.64				0.42				1.20
Riverside Community Bank			0.41				(0.50	)			0.82				(0.33	)			0.92
Arizona Bank & Trust			(1.86	)			(1.88	)			(4.94	)			(1.44	)			(1.93	)
First Community Bank			0.32				(0.67	)			1.05				0.01				0.25
Summit Bank & Trust			(5.62	)			(5.59	)			(2.23	)			(3.07	)			(7.44	)
Minnesota Bank & Trust			(2.42	)			(2.77	)			(4.32	)			(5.52	)			(8.66	)
Net Interest Margin as a Percentage of Average Earning Assets
Dubuque Bank and Trust Company			3.98	%			3.72	%			3.59	%			3.60	%			3.52	%
New Mexico Bank & Trust			4.67				4.38				4.70				4.45				4.59
Rocky Mountain Bank			3.80				3.82				4.17				3.86				4.40
Wisconsin Community Bank			3.76				4.12				3.65				3.38				3.69
Galena State Bank & Trust Co.			3.47				3.59				3.43				3.42				3.33
Riverside Community Bank			3.86				3.38				2.98				3.06				3.30
Arizona Bank & Trust			3.33				3.20				3.88				3.60				3.83
First Community Bank			4.31				3.60				3.53				3.33				3.23
Summit Bank & Trust			2.47				3.17				3.38				3.42				4.04
Minnesota Bank & Trust			3.86				3.94				3.11				2.22				3.03

HEARTLAND FINANCIAL USA, INC.
SELECTED FINANCIAL DATA – SUBSIDIARY BANKS (Unaudited)
DOLLARS IN THOUSANDS
			As of				As of				As of				As of				As of
			9/30/2009				6/30/2009				3/31/2009				12/31/2008				9/30/2008
Total Portfolio Loans and Leases
Dubuque Bank and Trust Company		$	653,579			$	669,925			$	662,047			$	669,856			$	666,613
New Mexico Bank & Trust			513,560				499,597				480,147				494,877				472,382
Rocky Mountain Bank			302,494				314,523				312,335				326,086				337,049
Wisconsin Community Bank			289,558				298,817				295,852				291,164				283,677
Galena State Bank & Trust Co.			136,700				130,011				130,791				141,428				142,776
Riverside Community Bank			161,025				159,977				161,304				165,347				162,976
Arizona Bank & Trust			142,387				135,198				138,647				139,723				134,838
First Community Bank			73,722				72,676				74,120				79,261				77,765
Summit Bank & Trust			58,410				60,948				62,157				60,725				55,125
Minnesota Bank & Trust			22,118				19,977				14,796				13,134				7,986
Allowance For Loan and Lease Losses
Dubuque Bank and Trust Company		$	10,318			$	9,478			$	9,333			$	9,307			$	8,200
New Mexico Bank & Trust			7,641				7,080				6,607				6,847				6,748
Rocky Mountain Bank			6,152				5,743				4,938				4,678				4,983
Wisconsin Community Bank			5,133				4,386				4,345				4,297				4,448
Galena State Bank & Trust Co.			1,897				1,711				1,782				1,962				1,883
Riverside Community Bank			2,475				2,270				2,215				2,293				2,154
Arizona Bank & Trust			4,380				2,520				3,933				2,330				2,246
First Community Bank			1,122				989				1,023				1,110				1,404
Summit Bank & Trust			930				922				1,075				874				898
Minnesota Bank & Trust			276				234				185				164				100
Nonperforming Loans and Leases
Dubuque Bank and Trust Company		$	7,365			$	6,474			$	6,180			$	7,840			$	4,840
New Mexico Bank & Trust			18,693				10,283				10,094				11,426				5,711
Rocky Mountain Bank			17,286				18,570				12,854				17,254				6,367
Wisconsin Community Bank			13,276				12,173				13,075				10,746				10,951
Galena State Bank & Trust Co.			2,045				2,425				3,040				4,625				3,006
Riverside Community Bank			9,493				8,457				6,105				6,410				2,508
Arizona Bank & Trust			5,689				5,806				5,234				8,278				4,972
First Community Bank			3,866				2,893				4,291				5,102				3,251
Summit Bank & Trust			5,528				3,305				5,460				5,486				1,533
Minnesota Bank & Trust			-				-				-				-				-
Allowance As a Percent of Total Loans and Leases
Dubuque Bank and Trust Company			1.58	%			1.41	%			1.41	%			1.39	%			1.23	%
New Mexico Bank & Trust			1.49				1.42				1.38				1.38				1.43
Rocky Mountain Bank			2.03				1.83				1.58				1.43				1.48
Wisconsin Community Bank			1.77				1.47				1.47				1.48				1.57
Galena State Bank & Trust Co.			1.39				1.32				1.36				1.39				1.32
Riverside Community Bank			1.54				1.42				1.37				1.39				1.32
Arizona Bank & Trust			3.08				1.86				2.84				1.67				1.67
First Community Bank			1.52				1.36				1.38				1.40				1.81
Summit Bank & Trust			1.59				1.51				1.73				1.44				1.63
Minnesota Bank & Trust			1.25				1.17				1.25				1.25				1.25

Buzz up!