Heartland Financial USA Inc (HTLF) Reports Q3 2023 Earnings

• Heartland Financial USA Inc (NASDAQ:HTLF) reports a quarterly net income available to common stockholders of $46.1 million.

• Quarterly diluted earnings per common share were $1.08, including $.04 of acquisition, integration, and restructuring costs.

• Quarterly loan growth and total customer deposit growth both recorded a 1% increase.

• Nonperforming assets to total assets and 30-89 day loan delinquencies remained unchanged at 0.33% and 0.12%, respectively.

Heartland Financial USA Inc (NASDAQ:HTLF) released its earnings report on October 30, 2023, revealing a quarterly net income available to common stockholders of $46.1 million. This figure represents a decrease of $8.5 million or 16% compared to the same period in 2022. The diluted earnings per common share stood at $1.08, which includes $.04 of acquisition, integration, and restructuring costs.

Financial Performance

HTLF reported a net interest income of $145.8 million, a decrease of $10.1 million or 6% compared to the same quarter in 2022. The return on average assets was 0.94%, and the return on average common equity was 10.47%. The return on average tangible common equity (non-GAAP) was 16.34%.

For the nine months ended September 30, 2023, HTLF reported a net income available to common stockholders of $144.2 million, a slight decrease of $1.2 million or 1% compared to the same period in 2022. The earnings per diluted common share were $3.37, a decrease of $0.05 or 1%.

Loan and Deposit Growth

HTLF reported a quarterly loan growth of $154.5 million or 1%. Total customer deposit growth during the quarter was $152.3 million or 1%. Total loans held to maturity were $11.87 billion at the end of the quarter, representing an increase of $154.5 million or 1%, and $444.1 million or 4% respectively.

Asset Quality

Nonperforming assets to total assets and 30-89 day loan delinquencies remained unchanged at 0.33% and 0.12%, respectively. Nonperforming loans to total loans decreased to 0.44% from 0.54% at June 30, 2023, and 0.60% at September 30, 2022.

Commentary

HTLF delivered another solid quarter highlighted by loan and customer deposit growth, reduced wholesale deposits and continued stable credit quality while effectively managing core expenses. We are also pleased that we successfully completed the final charter consolidation and look forward to 2024 with this significant project behind us," said Bruce K. Lee, president and chief executive officer of HTLF.

HTLF's total assets were $20.13 billion as of September 30, 2023, a decrease of $114.4 million or 1% from $20.24 billion at year-end 2022. Securities represented 32% and 35% of total assets at September 30, 2023, and December 31, 2022, respectively.

For more detailed financial information, please visit the HTLF's earnings conference call.

Explore the complete 8-K earnings release (here) from Heartland Financial USA Inc for further details.

This article first appeared on GuruFocus.