Heartland posts drop in profit for third quarter

Heartland posts drop in profit for third quarter, citing higher loan losses

• On 5:07 pm EDT, Monday October 26, 2009

DUBUQUE, Iowa (AP) -- Community bank Heartland Financial USA Inc. said Monday that higher loan losses narrowed its profit in the third quarter.

For the three months ended Sept. 30, the company earned $2.2 million, or 13 cents per share. That compared with income of $3 million, or 18 cents per share, in the year-ago period.

The performance missed Wall Street expectations. On average, analysts surveyed by Thomson Reuters forecast earnings of 17 cents per share.

Non-interest income -- from items such as service charges and fees -- grew to $11.9 million, up from $7.9 million the same quarter last year.

However, the company's provisions for loan losses in the quarter were $11.9 million, compared with $7.1 million the same time a year ago. The jump was the result of deteriorating economic conditions and higher levels of charge-offs, primarily in the company's Western markets of Arizona, Montana and Colorado, Heartland said.

Shares of Heartland slipped 11 cents to $14.03.