•
Jun 30, 2023

Heartland Financial Q2 2023 Earnings Report

Heartland Financial's financial performance remained steady with slight revenue growth and solid loan growth.

Key Takeaways

Heartland Financial USA, Inc. reported a net income available to common stockholders of $47.4 million and diluted earnings per common share of $1.11 for the quarter ended June 30, 2023. Total revenue grew by 1% compared to the same quarter in 2022, driven by loan growth and new customer relationships.

Net income available to common stockholders was $47.4 million.

Diluted earnings per common share reached $1.11.

Total revenue increased by 1% year-over-year to $179.6 million.

Loan growth was strong, with an increase of $222.6 million or 2% during the quarter.

Total Revenue
$180M
Previous year: $177M
+1.5%
EPS
$1.11
Previous year: $1.17
-5.1%
Net Interest Margin
3.19%
Previous year: 3.18%
+0.3%
Return on Average Assets
0.98%
Previous year: 1.06%
-7.5%
Return on Average Common Equity
11.01%
Previous year: 11.55%
-4.7%
Cash and Equivalents
$400M
Previous year: $385M
+4.0%
Free Cash Flow
$107M
Previous year: $99.1M
+8.5%
Total Assets
$20.2B
Previous year: $19.7B
+2.9%

Heartland Financial

Heartland Financial

Forward Guidance

HTLF expects to continue executing on its strategic priorities, focusing on loan growth and new customer relationships, with stable deposit base and growth strategies giving momentum into the second half of the year. Charter consolidation is designed to eliminate redundancies and improve HTLF’s operating efficiency and capacity to support ongoing product and service enhancements, as well as current and future growth. Total benefits are estimated to be approximately $20 million annually after the project is completed.

Positive Outlook

  • Strong loan growth.
  • New customer relationships.
  • Stable deposit base.
  • Growth strategies in place.
  • Momentum heading into the second half of the year.

Challenges Ahead

  • Industry challenges.
  • Consolidation restructuring costs.
  • Redundancies.
  • Eliminating redundancies.
  • Operating efficiency.