Heartland Financial Q4 2022 Earnings Report
Key Takeaways
Heartland Financial USA, Inc. reported a strong fourth quarter with net income available to common stockholders of $58.6 million, or $1.37 per diluted common share. The company saw quarterly loan growth of $504.8 million and total revenue growth of $10.1 million. HTLF also completed the consolidation of two bank charters during the quarter.
Net income available to common stockholders was $58.6 million, or $1.37 per diluted common share.
Quarterly loan growth reached $504.8 million, representing a 5% increase.
Total revenue grew by $10.1 million, a 5% increase for the quarter.
Nonperforming assets to total assets declined to 0.33%, and 30-89 day loan delinquencies fell to 0.04% of total loans.
Heartland Financial
Heartland Financial
Forward Guidance
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. HTLF realized some operating efficiency and financial benefits in the third and fourth quarters of 2022 with the completion of five charter consolidations, and total benefits are estimated to be approximately $20.0 million annually after the project is completed. The remaining six charters are expected to be consolidated by the end of 2023.
Positive Outlook
- Eliminate redundancies
- Improve HTLF’s operating efficiency
- Support ongoing product and service enhancements
- Support current and future growth
- Total benefits are estimated to be approximately $20.0 million annually after the project is completed.
Challenges Ahead
- Consolidation restructuring costs are projected to be $19-$20 million
- Approximately $10 million of expenses remaining to be incurred through 2023
- There can be no assurance that other factors not currently anticipated by HTLF will not materially and adversely affect the company’s business, financial condition and results of operations.
- COVID-19 Pandemic Risks, including risks related to the ongoing COVID-19 pandemic and measures enacted by the U.S. federal and state governments and adopted by private businesses in response to the COVID-19 pandemic
- Economic and Market Conditions Risks, including risks related to changes in the U.S. economy in general and in the local economies in which HTLF conducts its operations and future civil unrest, natural disasters, pandemics, persistent inflation, supply chain issues, labor shortages, terrorist threats or acts of war