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Heartland Financial Q4 2024 Earnings Report
Heartland Financial reported a decrease in net income and EPS for the fourth quarter of 2024 compared to the previous year, alongside an increase in customer deposits and an improved common equity tier 1 ratio.
Key Takeaways
Heartland Financial USA, Inc. reported a net income of $14.0 million for the fourth quarter of 2024, or $0.32 per common share. This represents a significant decrease compared to the same period in the previous year. Despite the decline in net income, the company saw a 6% annualized increase in customer deposits and an improvement in its common equity tier 1 ratio to 13.16%. The net interest margin decreased to 3.46% due to the termination of interest rate swaps.
Net income available to common stockholders was $14.0 million, or $0.32 per common share, for Q4 2024.
Common equity tier 1 ratio improved by 50 basis points to 13.16% in Q4 2024.
Customer deposits increased by $201.7 million, or 6% annualized, reaching $14.55 billion, with the cost of deposits decreasing to 2.13%.
Net interest margin decreased to 3.46% in Q4 2024 from 3.73% in Q3 2024, primarily due to the termination of interest rate swaps.
Revenue by Segment
Forward Guidance
HTLF anticipates closing its merger with UMB Bank on January 31, 2025. The company has taken strategic actions to prepare for the merger, including charging off lower performing loans and divesting certain investment securities.
Positive Outlook
- Anticipated merger with UMB Bank on January 31, 2025, expected to strengthen the combined entity.
- Strategic actions taken to charge off lower performing loans, improving asset quality.
- Divestment of certain investment securities to optimize the balance sheet.
- Strong balance sheet position with improved common equity tier 1 ratio.
- Continued focus on serving customers and communities post-merger.
Challenges Ahead
- Uncertainty regarding the accuracy and achievement of forward-looking statements due to various risks.
- Potential for material adverse effects on business, financial condition, and results of operations from unanticipated factors.
- Risks related to the deterioration of the U.S. economy and local economies.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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