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Mar 31, 2022
Heartland Financial Q1 2022 Earnings Report
Reported quarterly results, showing a decrease in net income but strong loan growth and excellent credit metrics.
Key Takeaways
Heartland Financial USA, Inc. reported a decrease in net income available to common stockholders and earnings per diluted common share for the quarter ended March 31, 2022, compared to the same period in 2021. However, the company experienced strong loan growth, increased fee revenue, and excellent credit metrics.
Quarterly loan growth of $357.8 million, or 4%, excluding Paycheck Protection Program (PPP) loans.
Quarterly non-time deposit growth of $219.4 million, or 1%.
Net income available to common stockholders was $47.9 million.
Diluted earnings per common share was $1.12.
Revenue by Segment
Forward Guidance
HTLF Board of Directors unanimously approved a plan to consolidate its 11 separate bank charters. The consolidation project is underway and is expected to be completed by the end of 2023. The ongoing financial benefits from consolidation are expected to be approximately $20.0 million when the project is completed.
Positive Outlook
- Elimination of redundancies
- Improved operating processes
- Increase operating capacity to be leveraged with future growth
- Provide better alignment of products
- Provide better alignment of services
Challenges Ahead
- Remaining estimated restructuring costs of the project are approximately $17.0 million.
- Potential disruption during the consolidation process.
- Integration challenges with different bank charters.
- Possible customer confusion during the transition.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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