Heartland Financial USA (HTLF) Q4 2024 earnings summary

Executive summary

• Reported quarterly net income available to common stockholders of $14.0 million, or $0.32 per share, for Q4 2024; annual net income of $163.6 million, or $3.79 per share, for 2024.

• Customer deposits grew to $14.55 billion, up $201.7 million (6% annualized) from Q3 2024, with deposit costs decreasing 5 basis points to 2.13%.

• Common equity tier 1 ratio improved by 50 basis points to 13.16% in Q4 2024.

• Strategic actions included charging off lower-performing loans and divesting certain investment securities in preparation for the UMB Bank merger expected to close January 31, 2025.

Financial highlights

• Net interest income for Q4 2024 was $142.4 million, down from $156.1 million in Q4 2023; annual net interest income was $613.2 million, up from $601.2 million in 2023.

• Net interest margin decreased to 3.46% in Q4 2024 from 3.73% in Q3 2024, mainly due to the termination of interest rate swaps.

• Provision for credit losses increased to $37.2 million in Q4 2024, compared to $11.7 million in Q4 2023.

• Noninterest expense for Q4 2024 was $117.0 million, down from $130.3 million in Q4 2023.

• Q4 2024 charge-offs totaled $48.9 million, with $43.1 million related to five non-owner occupied real estate properties.

Outlook and guidance

• Anticipates closing the merger with UMB Bank on January 31, 2025, with expectations of a stronger balance sheet post-merger.