GlobeNewswire Inc | Oct 25, 2021 04:00PM EDT

October 25, 2021

Highlights and Developments

-- Quarterly net income available to common stockholders of $53.9 million compared to $45.5 million for the third quarter of 2020, an increase of $8.4 million or 18% -- Year to date net income available to common stockholders of $164.3 million compared to $95.7 million for the nine months ended September 30, 2020, an increase of $68.6 million or 72% -- Quarterly loan growth of $262.8 million or 11% annualized, exclusive of Paycheck Protection Program ("PPP") loans -- Net recoveries on previously charged off loans of $1.3 million, nonperforming assets to total assets declined to 0.46%, and 30-89 day loan delinquencies fell to 0.12% of total loans for the third quarter of 2021 -- PPP loan forgiveness received of $419.9 million during the third quarter of 2021 -- Completed offering of $150.0 million of subordinated notes with net proceeds totaling $147.6 million and fixed-to-floating interest rate set at 2.75% for the first five years -- Announced an 8% increase in the regular quarterly dividend to $0.27 per common share

Quarter Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Net income available tocommon stockholders (in $ 53.9 $ 45.5 $ 164.3 $ 95.7 millions)Diluted earnings per common 1.27 1.23 3.88 2.59 share Return on average assets 1.19 % 1.26 % 1.25 % 0.92 %Return on average common 10.32 10.90 10.95 7.90 equityReturn on average tangible 15.14 16.11 16.34 12.10 common equity (non-GAAP)^(1)Net interest margin 3.30 3.51 3.37 3.70 Net interest margin, fully 3.34 3.55 3.41 3.74 tax-equivalent (non-GAAP)^(1)Efficiency ratio, fully-tax 60.38 54.67 58.05 57.28 equivalent (non-GAAP)^(1)

(1) Refer to "Non-GAAP Measures" in this earnings release for additional information on the usage and presentation of these non-GAAP measures, and refer to the financial tables for reconciliations to the most directly comparable GAAP measures.

"HTLF had another solid quarter driven by our strong balance sheet andexcellent credit metrics. We were pleased with the trajectory of non-PPP loangrowth, our record low level of loan delinquencies and the net recoveries onpreviously charged-off loans for the quarter. We are also continuing to exploreways to improve operational efficiency, including evaluating the consolidationof our 11 bank charters."Bruce K. Lee, president and chief executive officer, HTLF

DUBUQUE, Iowa, Oct. 25, 2021 (GLOBE NEWSWIRE) -- Heartland Financial USA, Inc. (NASDAQ: HTLF) today reported the following results for the quarter ended September 30, 2021 compared to the quarter ended September 30, 2020:

-- Net income available to common stockholders of $53.9 million compared to $45.5 million, an increase of $8.4 million or 18%. -- Earnings per diluted common share of $1.27 compared to $1.23, an increase of $0.04 or 3%. -- Net interest income of $142.5 million compared to $122.5 million, an increase of $20.0 million or 16%. -- Return on average common equity was 10.32% and return on average assets was 1.19% compared to 10.90% and 1.26%. -- Return on average tangible common equity (non-GAAP) was 15.14% compared to 16.11%.

HTLF reported the following results for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020:

-- Net income available to common stockholders of $164.3 million compared to $95.7 million, an increase of $68.6 million or 72%. -- Earnings per diluted common share of $3.88 compared to $2.59, an increase of $1.29 or 50%. -- Net interest income of $423.4 million compared to $359.2 million, an increase of $64.2 million or 18%. -- Return on average common equity was 10.95% and return on average assets was 1.25% compared to 7.90% and 0.92%. -- Return on average tangible common equity (non-GAAP) was 16.34% compared to 12.10%.

"HTLF had another solid quarter driven by our strong balance sheet and excellent credit metrics. We were pleased with the trajectory of non-PPP loan growth, our record low level of loan delinquencies and the net recoveries on previously charged-off loans for the quarter. We are also continuing to explore ways to improve operational efficiency, including evaluating the consolidation of our 11 bank charters," said Bruce K. Lee, president and chief executive officer of HTLF.

Net Interest Income and Net Interest Margin

Net interest margin, expressed as a percentage of average earning assets, was 3.30% (3.34% on a fully tax-equivalent basis, non-GAAP) during the third quarter of 2021, compared to 3.37% (3.41% on a fully tax-equivalent basis, non-GAAP) during the second quarter of 2021 and 3.51% (3.55% on a fully tax-equivalent basis, non-GAAP) during the third quarter of 2020.

Total interest income and average earning asset changes for the third quarter of 2021 compared to the third quarter of 2020 were:

-- Total interest income was $149.2 million, which was an increase of $18.2 million or 14% from $131.0 million and primarily attributable to an increase in average earning assets partially offset by lower yields. -- Total interest income on a tax-equivalent basis (non-GAAP) was $150.9 million, which was an increase of $18.5 million or 14% from $132.4 million. -- Average earning assets increased $3.26 billion or 23% to $17.12 billion compared to $13.87 billion, which was primarily attributable to recent acquisitions and loan growth, including PPP loans. -- The average rate on earning assets decreased 30 basis points to 3.50% compared to 3.80%, which was primarily due to recent decreases in market interest rates and a shift in earning asset mix. Total average securities were 41% of total average earning assets compared to 33%.

Total interest expense and average interest bearing liability changes for the third quarter of 2021 compared to the third quarter of 2020 were:

-- Total interest expense was $6.6 million, a decrease of $1.8 million or 22% from $8.5 million, based on a decrease in the average interest rate paid, which was partially offset by an increase in average interest bearing liabilities. -- The average interest rate paid on interest bearing liabilities decreased to 0.27% compared to 0.40%, which was primarily due to recent decreases in market interest rates. -- Average interest bearing deposits increased $1.70 billion or 22% to $9.46 billion from $7.76 billion which was primarily attributable to recent acquisitions and deposit growth. -- The average interest rate paid on interest bearing deposits decreased 11 basis points to 0.14% compared to 0.25%. -- Average borrowings decreased $140.5 million or 25% to $419.9 million from $560.4 million, which was primarily attributable to reduced advances from the PPP lending fund used to fund PPP loans to borrowers. Average advances from the PPP lending fund totaled $2.9 million compared to $158.3 million. The average interest rate paid on borrowings was 3.02% compared to 2.49%.

Net interest income increased for the third quarter of 2021 compared to the third quarter of 2020:

-- Net interest income totaled $142.5 million compared to $122.5 million, which was an increase of $20.0 million or 16%. -- Net interest income on a tax-equivalent basis (non-GAAP) totaled $144.3 million compared to $123.9 million, which was an increase of $20.4 million or 16%.

Noninterest Income and Noninterest Expense

Total noninterest income was $32.7 million during the third quarter of 2021 compared to $31.2 million during the third quarter of 2020, an increase of $1.5 million or 5%. Significant changes within the noninterest income category for the third quarter of 2021 compared to the third quarter of 2020 were:

-- Service charges and fees increased $3.8 million or 32% to $15.6 million from $11.7 million. The increase was primarily attributable to acquisitions completed in the fourth quarter of 2020. -- Trust fees increased $864,000 or 16% to $6.2 million from $5.4 million. The increase was primarily attributable to an increase in market value of trust assets under management. -- Net gains on sales of loans held for sale totaled $5.3 million compared to $8.9 million, which was a decrease of $3.6 million or 41% and was primarily attributable to a decrease of loans sold to the secondary market.

Total noninterest expense was $110.6 million during the third quarter of 2021 compared to $90.4 million during the third quarter of 2020, which was an increase of $20.2 million or 22%. Significant changes within the noninterest expense category for the third quarter of 2021 compared to the third quarter of 2020 were:

-- Salaries and employee benefits totaled $60.7 million compared to $51.0 million, which was an increase of $9.7 million or 19%. The increase was primarily attributable to higher salary and health care expenses as a result of more full time equivalent employees and normalized health care usage. Full-time equivalent employees increased 336 to 2,163 compared to 1,827 which was primarily attributable to the acquisitions completed in the fourth quarter of 2020 and the addition of specialized commercial and agribusiness lending teams during the third quarter of 2021. -- Professional fees increased $4.4 million or 35% to $17.2 million compared to $12.8 million. The increase was primarily attributable to the utilization of external resources to support automation and technology projects, higher cloud based computing expenses and acquisitions completed in the fourth quarter of 2020. -- Other noninterest expenses increased $5.3 million or 54% to $15.1 million compared to $9.8 million. The following items impacted the third quarter of 2021 compared to the third quarter of 2020: Travel and staff and customer entertainment expenses increased $860,000 to $1.2 million from $310,000. Travel and customer events were limited in the third quarter of 2020 due to the pandemic.Credit card processing and rebate expenses increased $1.8 million or 126% to $3.3 million from $1.4 million, which was primarily attributable to increased volume.Fraud losses increased $458,000 or 99% to $919,000 from $461,000. The increase was primarily attributable to check fraud and wire fraud transactions given the heightened fraud environment.

The remainder of the increase was primarily attributable to acquisitions completed in the fourth quarter of 2020.

The effective tax rate was 19.15% for the third quarter of 2021 compared to 22.20% for the third quarter of 2020. The following items impacted the third quarter 2021 and 2020 tax calculations:

-- Solar energy tax credits of $2.1 million compared to $965,000. -- Federal low-income housing tax credits of $135,000 compared to $195,000. -- New markets tax credits of $75,000 in each quarterly calculation. -- Historic rehabilitation tax credits of $327,000 compared to $0. -- Tax-exempt interest income as a percentage of pre-tax income of 9.32% compared to 8.48%.

Total Assets, Total Loans and Total Deposits

Total assets were $19.00 billion at September 30, 2021, an increase of $1.09 billion or 6% from $17.91 billion at year-end 2020. Securities represented 40% and 35% of total assets at September 30, 2021, and December 31, 2020, respectively.

Total loans held to maturity were $9.85 billion at September 30, 2021, $10.01 billion at June 30, 2021, and $10.02 billion at December 31, 2020. Excluding total PPP loans, loans increased $262.8 million or 11% annualized during the third quarter of 2021 and $380.4 million or 6% annualized since year-end 2020.

Significant changes by loan category at September 30, 2021 compared to June 30, 2021 included:

-- Commercial and business lending, which includes commercial and industrial, PPP and owner occupied commercial real estate loans, decreased $205.4 million or 4% to $5.08 billion compared to $5.29 billion. PPP loans originated in 2020 ("PPP I") decreased $299.9 million or 80%. PPP loans originated in 2021 ("PPP II") decreased $120.0 million or 26%.Excluding total PPP loans, commercial and business lending increased $214.6 million or 5% to $4.67 billion from $4.46 billion. -- Commercial real estate lending, which includes non-owner occupied commercial real estate and construction loans, decreased $7.2 million or less than 1% to $2.83 billion compared to $2.84 billion. -- Residential mortgage loans increased $39.5 million or 5% to $840.4 million from $800.9 million. -- Consumer loans increased $10.9 million or 3% to $412.6 million from $401.6 million.

Significant changes by loan category at September 30, 2021 compared to December 31, 2020, included:

-- Commercial and business lending, which includes commercial and industrial, PPP and owner occupied commercial real estate loans, decreased $186.1 million or 4%, to $5.08 billion compared to $5.27 billion. PPP I loans decreased $883.5 million or 92%. PPP II loans totaled $335.0 million.Excluding total PPP loans, commercial and business lending increased $362.4 million or 8% to $4.67 billion from $4.31 billion. -- Commercial real estate lending, which includes non-owner occupied commercial real estate and construction loans, increased $49.8 million or 2% to $2.83 billion compared to $2.78 billion. -- Agriculture and agricultural real estate loans decreased $29.9 million or 4% to $684.7 million compared to $714.5 million.

Total deposits were $16.02 billion as of September 30, 2021, $15.62 billion as of June 30, 2021 and $14.98 billion at year-end 2020. Significant deposit changes by category at September 30, 2021 compared to June 30, 2021 included:

-- Demand deposits increased $238.4 million or 4% to $6.54 billion compared to $6.30 billion. -- Savings deposits increased $227.0 million or 3% to $8.42 billion from $8.19 billion. -- Time deposits decreased $58.3 million or 5% to $1.07 billion from $1.13 billion.

Significant deposit changes by category at September 30, 2021 compared to December 31, 2020 included:

-- Demand deposits increased $848.9 million or 15% to $6.54 billion compared to $5.69 billion. -- Savings deposits increased $396.5 million or 5% to $8.42 billion from $8.02 billion. -- Time deposits decreased $203.1 million or 16% to $1.07 billion from $1.27 billion.

Growth in demand deposits during the third quarter and first nine months of 2021 was positively impacted by payments related to federal government stimulus programs and other COVID-19 relief programs.

Provision and Allowance

Provision and Allowance for Credit Losses for Loans Provision benefit for credit losses for loans for the third quarter of 2021 was $4.4 million, which was a decrease of $9.2 million from provision expense of $4.7 million recorded in the third quarter of 2020. The provision benefit for the third quarter of 2021 was impacted by several factors, including:

-- decrease in nonperforming loans of $2.1 million to $83.2 or 0.84% of total loans compared to $85.4 million or 0.85% of total loans at June 30, 2021, -- nonpass loans declined to 9.15% of total loans compared to 10.37% of total loans at June 30, 2021, -- loans delinquent 30-89 days as a percent of total loans fell to 0.12% compared to 0.17% at June 30, 2021, -- net recoveries of $1.3 million, and -- stable macroeconomic factors compared to the second quarter of 2021.

The allowance for credit losses for loans totaled $117.5 million and $131.6 million at September 30, 2021, and December 31, 2020, respectively. The following items have impacted the allowance for credit losses for loans for the nine months ended September 30, 2021:

-- Provision benefit for the nine months ended September 30, 2021, totaled $10.9 million. -- Net charge offs of $3.2 million were recorded for the first nine months of 2021.

Provision and Allowance for Credit Losses for Unfunded Commitments The allowance for unfunded commitments totaled $14.0 million at September 30, 2021, which was a decrease of $1.3 million from $15.3 million at December 31, 2020. Unfunded commitments increased $336.5 million to $3.58 billion at September 30, 2021 compared to $3.25 billion at December 31, 2020.

Total Provision and Allowance for Lending Related Credit LossesThe total provision benefit for lending related credit losses was $4.5 million for the third quarter of 2021 compared to provision expense of $1.7 million for the third quarter of 2020. The total allowance for lending related credit losses was $131.5 million at September 30, 2021, which was 1.33% of total loans as of September 30, 2021, compared to $146.9 million or 1.47% of total loans as of December 31, 2020. Excluding PPP loans, the allowance for lending related credit losses as a percentage of total loans was 1.39% and 1.62% as of September 30, 2021, and December 31, 2020, respectively.

Nonperforming Assets

Nonperforming assets decreased $6.8 million or 7% to $88.1 million or 0.46% of total assets at September 30, 2021, compared to $95.0 million or 0.53% of total assets at December 31, 2020. Nonperforming loans were $83.2 million or 0.84% of total loans at September 30, 2021, compared to $88.1 million or 0.88% of total loans at December 31, 2020. At September 30, 2021, loans delinquent 30-89 days were 0.12% of total loans compared to 0.23% of total loans at December 31, 2020.

Non-GAAP Financial MeasuresThis earnings release contains references to financial measures which are not defined by generally accepted accounting principles ("GAAP"). Management believes the non-GAAP measures are helpful for investors to analyze and evaluate the company's financial condition and operating results. However, these non-GAAP measures have inherent limitations and should not be considered a substitute for operating results determined in accordance with GAAP. Additionally, because non-GAAP measures are not standardized, it may not be possible to compare the non-GAAP measures in this earnings release with other companies' non-GAAP measures. Reconciliations of each non-GAAP measure to the most directly comparable GAAP measure may be found in the financial tables in this earnings release.

Below are the non-GAAP measures included in this earnings release, management's reason for including each measure and the method of calculating each measure:

-- Annualized net interest margin, fully tax-equivalent, adjusts net interest income for the tax-favored status of certain loans and securities. Management believes this measure enhances the comparability of net interest income arising from taxable and tax-exempt sources. -- Efficiency ratio, fully tax equivalent, expresses noninterest expenses as a percentage of fully tax-equivalent net interest income and noninterest income. This efficiency ratio is presented on a tax-equivalent basis which adjusts net interest income and noninterest expenses for the tax favored status of certain loans, securities, and tax credit projects. Management believes the presentation of this non-GAAP measure provides supplemental useful information for proper understanding of the financial results as it enhances the comparability of income and expenses arising from taxable and nontaxable sources and excludes specific items as noted in reconciliation contained in this earnings release. -- Net interest income, fully tax equivalent, is net income adjusted for the tax-favored status of certain loans and securities. Management believes this measure enhances the comparability of net interest income arising from taxable and tax-exempt sources. -- Tangible book value per common share is total common equity less goodwill and core deposit and customer relationship intangibles, net, divided by common shares outstanding, net of treasury. This measure is included as it is considered to be a critical metric to analyze and evaluate use of equity, financial condition and capital strength. -- Tangible common equity ratio is total common equity less goodwill and core deposit and customer relationship intangibles, net, divided by total assets less goodwill and core deposit and customer relationship intangibles, net. This measure is included as it is considered to be a critical metric to analyze and evaluate financial condition and capital strength. -- Annualized return on average tangible common equity is net income excluding intangible amortization calculated as (1) net income excluding tax-effected core deposit and customer relationship intangibles amortization, divided by (2) average common equity less goodwill and core deposit and customer relationship intangibles, net. This measure is included as it is considered to be a critical metric to analyze and evaluate use of equity, financial condition and capital strength.

Conference Call DetailsHTLF will host a conference call for shareholders, analysts and other interested parties at 5:00 p.m. EDT today. To join, please register in advance of the conference using the link provided below. Upon registering, participant dial-in numbers, Direct Event passcode and unique registrant ID will be provided. Direct Event online registration can be found at: http://www.directeventreg.com/registration/event/1492767. In the 10 minutes prior to the call start time, participants need to use the conference access information provided in the email received at the point of registering. A replay will be available until October 24, 2022, by logging on to www.htlf.com.

About HTLFHeartland Financial USA, Inc., operating under the brand name HTLF, is a financial services company with assets of $19.00 billion. HTLF has banks serving communities in Arizona, California, Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Montana, New Mexico, Texas and Wisconsin. HTLF is committed to its core commercial business, supported by a strong retail operation, and provides a diversified line of financial services including treasury management, residential mortgage, wealth management, investment and insurance. Additional information is available at www.htlf.com.

Safe Harbor StatementThis release (including any information incorporated herein by reference), and future oral and written statements of the company and its management, may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the business, financial condition, results of operations, plans, objectives and future performance of HTLF.

Any statements about the company's expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. Forward-looking statements may include information about possible or assumed future results of the company's operations or performance. These forward-looking statements are generally identified by the use of the words such as "believe", "expect", "intent", "anticipate", "plan", "intend", "estimate", "project", "may", "will", "would", "could", "should", "may", "view", "opportunity", "potential", or similar or negative expressions of these words or phrases that are used in this release, and future oral and written statements of the company and its management. Although the company may make these statements based on managements experience, beliefs, expectations, assumptions and best estimate of future events, the ability of the company to predict results or the actual effect or outcomes of plans or strategies is inherently uncertain, and there may be events or factors that management has not anticipated. Therefore, the accuracy and achievement of such forward-looking statements and estimates are subject to a number of risks, many of which are beyond the ability of management to control or predict, that could cause actual results to differ materially from those in its forward-looking statements. These factors, which the company currently believes could have a material effect on its operations and future prospects, are detailed below and in the risk factors in HTLF's reports filed with the Securities and Exchange Commission ("SEC"), including the "Risk Factors" section under Item 1A of Part I of the companys Annual Report on Form 10-K for the year ended December 31, 2020, include, among others:

-- 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, terrorist threats or acts of war; -- Credit Risks, including risks of increasing credit losses due to deterioration in the financial condition of HTLF's borrowers, changes in asset and collateral values and climate and other borrower industry risks which may impact the provision for credit losses and net charge-offs; -- Liquidity and Interest Rate Risks, including the impact of capital market conditions and changes in monetary policy on our borrowings and net interest income; -- Operational Risks, including processing, information systems, cybersecurity, vendor, business interruption, and fraud risks; -- Strategic and External Risks, including competitive forces impacting our business and strategic acquisition risks; -- Legal, Compliance and Reputational Risks, including regulatory and litigation risks; and -- Risks of Owning Stock in HTLF, including stock price volatility and dilution as a result of future equity offerings and acquisitions.

There can be no assurance that other factors not currently anticipated by HTLF will not materially and adversely affect the companys business, financial condition and results of operations. In addition, many of these risks and uncertainties are currently amplified by and may continue to be amplified by the COVID-19 pandemic and the impact of varying governmental responses that affect the companys customers and the economies where they operate. Additionally, all statements in this release, including forward-looking statements speak only as of the date they are made. The company does not undertake and specifically disclaims any obligation to publicly release the results of any revisions which may be made to or correct or update any forward-looking statement to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events or to otherwise update any statement in light of new information or future events. Further information concerning HTLF and its business, including additional factors that could materially affect the companys financial results, is included in the companys filings with the SEC.

-FINANCIAL TABLES FOLLOW-

HEARTLAND FINANCIAL USA, INC.CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA For the Quarter Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020Interest Income Interest and fees $ 112,062 $ 102,657 $ 336,416 $ 316,076 on loansInterest on securities:Taxable 32,384 25,016 94,373 70,109 Nontaxable 4,609 3,222 13,673 8,749 Interest on federal ? ? 1 ? funds soldInterest ondeposits with otherbanks and 132 72 258 847 short-terminvestmentsTotal Interest 149,187 130,967 444,721 395,781 IncomeInterest Expense Interest on 3,444 4,962 11,629 25,678 depositsInterest onshort-term 98 78 348 435 borrowingsInterest on other 3,102 3,430 9,378 10,514 borrowingsTotal Interest 6,644 8,470 21,355 36,627 ExpenseNet Interest Income 142,543 122,497 423,366 359,154 Provision (benefit) (4,534 ) 1,678 (12,262 ) 49,994 for credit lossesNet Interest IncomeAfter Provision for 147,077 120,819 435,628 309,160 Credit LossesNoninterest Income Service charges and 15,551 11,749 44,354 34,742 feesLoan servicing 784 638 2,495 1,980 incomeTrust fees 6,221 5,357 18,037 15,356 Brokerage andinsurance 866 649 2,584 1,977 commissionsSecurities gains/ 1,535 1,300 4,347 4,964 (losses), netUnrealized gain/(loss) on equity 112 155 85 604 securities, netNet gains on saleof loans held for 5,281 8,894 16,454 21,411 saleValuationadjustment on 195 (120 ) 586 (1,676 ) servicing rightsIncome on bankowned life 940 868 2,706 2,533 insuranceOther noninterest 1,239 1,726 4,557 5,779 incomeTotal Noninterest 32,724 31,216 96,205 87,670 IncomeNoninterest Expense Salaries and 60,689 50,978 177,083 151,053 employee benefitsOccupancy 7,366 6,732 22,683 19,705 Furniture and 3,365 2,500 9,959 8,601 equipmentProfessional fees 17,242 12,802 46,969 38,951 Advertising 1,921 928 5,039 4,128 Core deposit andcustomerrelationship 2,295 2,492 7,226 8,169 intangiblesamortizationOther real estateand loan collection 78 335 627 872 expenses, net(Gain)/loss onsales/valuations of (3 ) 1,763 374 2,480 assets, netAcquisition,integration and 204 1,146 3,342 3,195 restructuring costsPartnershipinvestment in tax 2,374 927 3,754 1,902 credit projectsOther noninterest 15,096 9,793 39,370 32,638 expensesTotal Noninterest 110,627 90,396 316,426 271,694 ExpenseIncome Before 69,174 61,639 215,407 125,136 Income TaxesIncome taxes 13,250 13,681 45,064 27,007 Net Income 55,924 47,958 170,343 98,129 Preferred dividends (2,013 ) (2,437 ) (6,038 ) (2,437 ) Net IncomeAvailable to Common $ 53,911 $ 45,521 $ 164,305 $ 95,692 StockholdersEarnings per common $ 1.27 $ 1.23 $ 3.88 $ 2.59 share-dilutedWeighted averageshares 42,415,993 36,995,572 42,381,313 36,955,970 outstanding-diluted

HEARTLAND FINANCIAL USA, INC.CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA For the Quarter Ended 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020Interest Income Interest and fees on loans $ 112,062 $ 111,915 $ 112,439 $ 108,865 $ 102,657 Interest on securities: Taxable 32,384 31,546 30,443 28,154 25,016 Nontaxable 4,609 4,561 4,503 3,735 3,222 Interest on federal funds ? ? 1 ? ? soldInterest on deposits withother banks and short-term 132 60 66 77 72 investmentsTotal Interest Income 149,187 148,082 147,452 140,831 130,967 Interest Expense Interest on deposits 3,444 3,790 4,395 4,609 4,962 Interest on short-term 98 98 152 175 78 borrowingsInterest on other 3,102 2,976 3,300 3,472 3,430 borrowingsTotal Interest Expense 6,644 6,864 7,847 8,256 8,470 Net Interest Income 142,543 141,218 139,605 132,575 122,497 Provision (benefit) for (4,534 ) (7,080 ) (648 ) 17,072 1,678 credit lossesNet Interest Income AfterProvision for Credit 147,077 148,298 140,253 115,503 120,819 LossesNoninterest Income Service charges and fees 15,551 15,132 13,671 12,725 11,749 Loan servicing income 784 873 838 997 638 Trust fees 6,221 6,039 5,777 5,506 5,357 Brokerage and insurance 866 865 853 779 649 commissionsSecurities gains/(losses), 1,535 2,842 (30 ) 2,829 1,300 netUnrealized gain/ (loss) on 112 83 (110 ) 36 155 equity securities, netNet gains on sale of loans 5,281 4,753 6,420 7,104 8,894 held for saleValuation adjustment on 195 (526 ) 917 (102 ) (120 ) servicing rightsIncome on bank owned life 940 937 829 1,021 868 insuranceOther noninterest income 1,239 2,166 1,152 1,726 1,726 Total Noninterest Income 32,724 33,164 30,317 32,621 31,216 Noninterest Expense Salaries and employee 60,689 57,332 59,062 51,615 50,978 benefitsOccupancy 7,366 7,399 7,918 6,849 6,732 Furniture and equipment 3,365 3,501 3,093 3,913 2,500 Professional fees 17,242 16,237 13,490 15,117 12,802 Advertising 1,921 1,649 1,469 1,107 928 Core deposit and customerrelationship intangibles 2,295 2,415 2,516 2,501 2,492 amortizationOther real estate and loan 78 414 135 468 335 collection expenses, net(Gain)/loss on sales/ (3 ) 183 194 2,621 1,763 valuations of assets, netAcquisition, integration 204 210 2,928 2,186 1,146 and restructuring costsPartnership investment in 2,374 1,345 35 1,899 927 tax credit projectsOther noninterest expenses 15,096 12,691 11,583 10,993 9,793 Total Noninterest Expense 110,627 103,376 102,423 99,269 90,396 Income Before Income Taxes 69,174 78,086 68,147 48,855 61,639 Income taxes 13,250 16,481 15,333 9,046 13,681 Net Income 55,924 61,605 52,814 39,809 47,958 Preferred dividends (2,013 ) (2,012 ) (2,013 ) (2,014 ) (2,437 ) Net Income Available to $ 53,911 $ 59,593 $ 50,801 $ 37,795 $ 45,521 Common StockholdersEarnings per common $ 1.27 $ 1.41 $ 1.20 $ 0.98 $ 1.23 share-dilutedWeighted average shares 42,415,993 42,359,873 42,335,747 38,534,082 36,995,572 outstanding-diluted

HEARTLAND FINANCIAL USA, INC.CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA As of 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020Assets Cash and due from $ 192,247 $ 208,702 $ 198,177 $ 219,243 $ 175,284 banksInterest bearingdeposits withother banks and 135,158 240,426 269,685 118,660 156,371 short-terminvestmentsCash and cash 327,405 449,128 467,862 337,903 331,655 equivalentsTime deposits inother financial 3,138 3,138 3,138 3,129 3,129 institutionsSecurities: Carried at fair 7,449,936 6,543,978 6,370,495 6,127,975 4,950,698 valueHeld to maturity,at cost, less 85,354 85,439 85,293 88,839 88,700 allowance forcredit lossesOther investments, 83,332 76,809 74,935 75,253 35,940 at costLoans held for 37,078 33,248 43,037 57,949 65,969 saleLoans: Held to maturity 9,854,907 10,012,014 10,050,456 10,023,051 9,099,646 Allowance for (117,533 ) (120,726 ) (130,172 ) (131,606 ) (103,377 ) credit lossesLoans, net 9,737,374 9,891,288 9,920,284 9,891,445 8,996,269 Premises,furniture and 221,996 226,358 225,047 226,094 200,028 equipment, netGoodwill 576,005 576,005 576,005 576,005 446,345 Core deposit andcustomer 35,157 37,452 39,867 42,383 40,520 relationshipintangibles, netServicing rights, 6,351 6,201 6,953 6,052 5,752 netCash surrendervalue on life 190,576 189,619 188,521 187,664 173,111 insuranceOther real estate, 4,744 6,314 6,236 6,624 5,050 netOther assets 237,779 246,029 236,754 281,024 269,498 Total Assets $ 18,996,225 $ 18,371,006 $ 18,244,427 $ 17,908,339 $ 15,612,664 Liabilities and EquityLiabilities Deposits: Demand $ 6,537,722 $ 6,299,289 $ 6,175,946 $ 5,688,810 $ 5,022,567 Savings 8,416,204 8,189,223 8,179,251 8,019,704 6,742,151 Time 1,068,317 1,126,606 1,203,854 1,271,391 1,002,392 Total deposits 16,022,243 15,615,118 15,559,051 14,979,905 12,767,110 Short-term 265,620 152,563 140,597 167,872 306,706 borrowingsOther borrowings 371,765 271,244 349,514 457,042 524,045 Accrued expensesand other 164,345 172,295 139,058 224,289 203,199 liabilitiesTotal Liabilities 16,823,973 16,211,220 16,188,220 15,829,108 13,801,060 Stockholders' EquityPreferred equity 110,705 110,705 110,705 110,705 110,705 Common stock 42,250 42,245 42,174 42,094 36,885 Capital surplus 1,068,913 1,066,765 1,063,497 1,062,083 847,377 Retained earnings 926,834 883,484 833,171 791,630 761,211 Accumulated othercomprehensive 23,550 56,587 6,660 72,719 55,426 incomeTotal Equity 2,172,252 2,159,786 2,056,207 2,079,231 1,811,604 Total Liabilities $ 18,996,225 $ 18,371,006 $ 18,244,427 $ 17,908,339 $ 15,612,664 and Equity

HEARTLAND FINANCIAL USA, INC.CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA AND FULL TIME EQUIVALENT EMPLOYEEDATA For the Quarter Ended 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020Average BalancesAssets $ 18,608,775 $ 18,293,756 $ 17,964,723 $ 16,401,152 $ 15,167,225 Loans, net of 9,920,047 10,072,071 9,952,152 9,366,430 9,220,666 unearnedDeposits 15,817,778 15,576,345 15,044,561 13,518,020 12,650,822 Earning assets 17,123,824 16,819,978 16,460,124 15,042,079 13,868,360 Interestbearing 9,881,350 9,871,302 9,917,159 9,053,855 8,320,123 liabilitiesCommon equity 2,072,593 1,980,904 1,963,674 1,769,575 1,661,381 Totalstockholders' 2,183,298 2,091,609 2,074,379 1,880,280 1,772,086 equityTangiblecommon equity 1,460,309 1,366,285 1,346,270 1,238,691 1,172,891 (non-GAAP)^(1) KeyPerformance RatiosAnnualizedreturn on 1.19 % 1.35 % 1.19 % 0.97 % 1.26 %average assetsAnnualizedreturn on 10.32 12.07 10.49 8.50 10.90 average commonequity (GAAP)Annualizedreturn onaverage 15.14 18.05 15.90 12.77 16.11 tangiblecommon equity(non-GAAP)^(1)Annualizedratio of netcharge-offs/ (0.05 ) 0.12 0.06 0.01 0.92 (recoveries)to averageloansAnnualized netinterest 3.30 3.37 3.44 3.51 3.51 margin (GAAP)Annualized netinterestmargin, fully 3.34 3.41 3.48 3.55 3.55 tax-equivalent(non-GAAP)^(1)Efficiencyratio, fully 60.38 57.11 56.61 54.93 54.67 tax-equivalent(non-GAAP)^(1)

For the Quarter Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020Average BalancesAssets $ 18,608,775 $ 15,167,225 $ 18,291,444 $ 14,239,151 Loans, net of 9,920,047 9,220,666 9,981,306 8,925,016 unearnedDeposits 15,817,778 12,650,822 15,482,394 11,972,615 Earning assets 17,123,824 13,868,360 16,803,740 12,957,661 Interestbearing 9,881,350 8,320,123 9,889,806 8,106,721 liabilitiesCommon equity 2,072,593 1,661,381 2,006,123 1,618,811 Totalstockholders' 2,183,298 1,772,086 2,116,828 1,658,006 equityTangiblecommon 1,460,309 1,172,891 1,391,373 1,127,642 stockholders'equity KeyPerformance RatiosAnnualizedreturn on 1.19 % 1.26 % 1.25 % 0.92 %average assetsAnnualizedreturn on 10.32 10.90 10.95 7.90 average commonequity (GAAP)Annualizedreturn onaverage 15.14 16.11 16.34 12.10 tangiblecommon equity(non-GAAP)^(1)Annualizedratio of netcharge-offs/ (0.05 ) 0.92 0.04 0.43 (recoveries)to averageloansAnnualized netinterest 3.30 3.51 3.37 3.70 margin (GAAP)Annualized netinterestmargin, fully 3.34 3.55 3.41 3.74 tax-equivalent(non-GAAP)^(1)Efficiencyratio, fully 60.38 54.67 58.05 57.28 tax-equivalent(non-GAAP)^(1) (1) Refer to "Non-GAAP Measures" in this earnings release for additionalinformation on the usage and presentation of these non-GAAP measures, and referto these financial tables for the reconciliations to the most directlycomparable GAAP measures.

HEARTLAND FINANCIAL USA, INC.CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)DOLLARS IN THOUSANDS, EXCEPT PER SHARE AND FULL TIME EQUIVALENT EMPLOYEE DATA As of and for the Quarter Ended 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020Common Share DataBook valueper common $ 48.79 $ 48.50 $ 46.13 $ 46.77 $ 46.11 shareTangiblebook valueper common $ 34.33 $ 33.98 $ 31.53 $ 32.07 $ 32.91 share(non-GAAP)^(1)Commonsharesoutstanding, 42,250,092 42,245,452 42,173,675 42,093,862 36,885,390 net oftreasurystockTangiblecommonequity ratio 7.89 % 8.08 % 7.54 % 7.81 % 8.03 %(non-GAAP)^(1) OtherSelected TrendInformationEffective 19.15 % 21.11 % 22.50 % 18.52 % 22.20 %tax rateFull timeequivalent 2,163 2,091 2,131 2,013 1,827 employees Loans Held to MaturityCommercialand $ 2,538,369 $ 2,518,908 $ 2,421,260 $ 2,534,799 $ 2,303,646 industrialPaycheckProtection 409,247 829,175 1,155,328 957,785 1,128,035 Program("PPP")Owneroccupied 2,135,227 1,940,134 1,837,559 1,776,406 1,494,902 commercialreal estateCommercialand business 5,082,843 5,288,217 5,414,147 5,268,990 4,926,583 lendingNon-owneroccupied 2,020,487 1,987,369 1,967,183 1,921,481 1,659,683 commercialreal estateReal estate 814,001 854,295 796,027 863,220 917,765 constructionCommercialreal estate 2,834,488 2,841,664 2,763,210 2,784,701 2,577,448 lendingTotalcommercial 7,917,331 8,129,881 8,177,357 8,053,691 7,504,031 lendingAgriculturaland 684,670 679,608 683,969 714,526 508,058 agriculturalreal estateResidential 840,356 800,884 786,994 840,442 701,899 mortgageConsumer 412,550 401,641 402,136 414,392 385,658 Total loansheld to $ 9,854,907 $ 10,012,014 $ 10,050,456 $ 10,023,051 $ 9,099,646 maturity Totalunfunded $ 3,583,417 $ 3,433,062 $ 3,306,042 $ 3,246,953 $ 2,980,484 loancommitments (1) Refer to "Non-GAAP Measures" in this earnings release for additionalinformation on the usage and presentation of these non-GAAP measures, and referto these financial tables for the reconciliations to the most directlycomparable GAAP measures.

HEARTLAND FINANCIAL USA, INC.CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA As of and for the Quarter Ended 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020Allowance forCredit Losses-LoansBalance,beginning of $ 120,726 $ 130,172 $ 131,606 $ 103,377 $ 119,937 periodAllowance foracquiredpurchased ? ? ? 12,313 ? creditdeterioratedloansProvision(benefit) for (4,448 ) (6,466 ) 16 16,132 4,741 credit lossesCharge-offs (1,167 ) (3,497 ) (2,126 ) (1,104 ) (21,753 ) Recoveries 2,422 517 676 888 452 Balance, end of $ 117,533 $ 120,726 $ 130,172 $ 131,606 $ 103,377 period Allowance forUnfunded CommitmentsBalance,beginning of $ 14,002 $ 14,619 $ 15,280 $ 14,330 $ 17,392 periodProvision(benefit) for (35 ) (617 ) (661 ) 950 (3,062 ) credit lossesBalance, end of $ 13,967 $ 14,002 $ 14,619 $ 15,280 $ 14,330 period Allowance forlending related $ 131,500 $ 134,728 $ 144,791 $ 146,886 $ 117,707 credit losses Provision for Credit LossesProvision(benefit) for $ (4,448 ) $ (6,466 ) $ 16 $ 6,572 $ 4,741 creditlosses-loansProvision forcredit ? ? ? 9,560 ? losses-acquiredloansProvision(benefit) forcredit (35 ) (617 ) (661 ) (1,372 ) (3,062 ) losses-unfundedcommitmentsProvision forcreditlosses-acquired ? ? ? 2,322 ? unfundedcommitmentsProvision(benefit) forcredit (51 ) 3 (3 ) (10 ) (1 ) losses-held tomaturitysecuritiesTotal provision(benefit) for $ (4,534 ) $ (7,080 ) $ (648 ) $ 17,072 $ 1,678 credit losses

HEARTLAND FINANCIAL USA, INC.CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA As of and for the Quarter Ended 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020Asset Quality Nonaccrual $ 82,375 $ 85,268 $ 91,718 $ 87,386 $ 79,040 loansLoans pastdue ninety 861 97 171 720 1,681 days or moreOther real 4,744 6,314 6,236 6,624 5,050 estate ownedOtherrepossessed 166 50 239 240 130 assetsTotalnonperforming $ 88,146 $ 91,729 $ 98,364 $ 94,970 $ 85,901 assets Performingtroubled debt $ 1,817 $ 2,122 $ 2,394 $ 2,370 $ 11,818 restructuredloans NonperformingAssets ActivityBalance,beginning of $ 91,729 $ 98,364 $ 94,970 $ 85,901 $ 98,537 periodNet loan(charge offs) 1,255 (2,980 ) (1,450 ) (216 ) (21,301 ) /recoveriesNewnonperforming 6,908 7,989 14,936 8,664 11,834 loansAcquirednonperforming ? ? ? 12,781 ? assetsReduction ofnonperforming (8,581 ) (10,948 ) (8,884 ) (10,811 ) (1,994 ) loans^(1)Net OREO/repossessedassets sales (3,165 ) (696 ) (1,208 ) (1,349 ) (1,175 ) proceeds andlossesBalance, end $ 88,146 $ 91,729 $ 98,364 $ 94,970 $ 85,901 of period Asset Quality RatiosRatio ofnonperforming 0.84 % 0.85 % 0.91 % 0.88 % 0.89 %loans tototal loansRatio ofnonperformingloans andperforming 0.86 0.87 0.94 0.90 1.02 trouble debtrestructuredloans tototal loansRatio ofnonperforming 0.46 0.50 0.54 0.53 0.55 assets tototal assetsAnnualizedratio of netloancharge-offs/ (0.05 ) 0.12 0.06 0.01 0.92 (recoveries)to averageloansAllowance forloan creditlosses as a 1.19 1.21 1.30 1.31 1.14 percent ofloansAllowance forlendingrelated 1.33 1.35 1.44 1.47 1.29 credit lossesas a percentof loansAllowance forloan creditlosses as a 141.20 141.42 141.66 149.37 128.07 percent ofnonperformingloansLoansdelinquent30-89 days as 0.12 0.17 0.16 0.23 0.17 a percent oftotal loans (1) Includes principal reductions, transfers to performing status and transfersto OREO.

HEARTLAND FINANCIAL USA, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)DOLLARS IN THOUSANDS For the Quarter Ended September 30, 2021 June 30, 2021 September 30, 2020 Average Interest Rate Average Interest Rate Average Interest Rate Balance Balance BalanceEarning Assets Securities: Taxable $ 6,244,097 $ 32,384 2.06 % $ 5,862,683 $ 31,546 2.16 % $ 4,125,700 $ 25,016 2.41 %Nontaxable^(1) 759,073 5,835 3.05 740,601 5,773 3.13 429,710 4,078 3.78 Total securities 7,003,170 38,219 2.17 6,603,284 37,319 2.27 4,555,410 29,094 2.54 Interest on depositswith other banks and 322,430 132 0.16 271,891 60 0.09 215,361 72 0.13 short-term investmentsFederal funds sold ? ? ? ? ? ? ? ? ? Loans:^(2) Commercial and 2,588,270 28,224 4.33 2,469,742 28,562 4.64 2,331,467 27,777 4.74 industrial^(1)PPP loans 602,675 11,186 7.36 1,047,559 11,186 4.28 1,128,488 7,462 2.63 Owner occupied 1,990,538 20,048 4.00 1,858,891 20,097 4.34 1,463,538 17,359 4.72 commercial real estateNon-owner occupied 1,964,609 22,129 4.47 1,980,374 21,734 4.40 1,589,073 18,860 4.72 commercial real estateReal estate 835,976 9,591 4.55 815,738 9,212 4.53 1,023,490 11,628 4.52 constructionAgricultural andagricultural real 674,510 7,415 4.36 672,560 7,267 4.33 514,442 5,968 4.62 estateResidential mortgage 855,734 9,068 4.20 827,291 9,255 4.49 774,850 8,915 4.58 Consumer 407,735 4,889 4.76 399,916 5,152 5.17 395,318 5,222 5.26 Less: allowance for (121,823 ) ? ? (127,268 ) ? ? (123,077 ) ? ? credit losses-loansNet loans 9,798,224 112,550 4.56 9,944,803 112,465 4.54 9,097,589 103,191 4.51 Total earning assets 17,123,824 150,901 3.50 % 16,819,978 149,844 3.57 % 13,868,360 132,357 3.80 %Nonearning Assets 1,484,951 1,473,778 1,298,865 Total Assets $ 18,608,775 $ 18,293,756 $ 15,167,225 Interest Bearing LiabilitiesSavings $ 8,364,326 $ 2,240 0.11 % $ 8,234,151 $ 2,233 0.11 % $ 6,723,962 $ 1,940 0.11 %Time deposits 1,097,126 1,204 0.44 1,171,266 1,557 0.53 1,035,715 3,022 1.16 Short-term borrowings 139,001 98 0.28 169,822 98 0.23 128,451 78 0.24 Other borrowings 280,897 3,102 4.38 296,063 2,976 4.03 431,995 3,430 3.16 Total interest bearing 9,881,350 6,644 0.27 % 9,871,302 6,864 0.28 % 8,320,123 8,470 0.40 %liabilitiesNoninterest Bearing LiabilitiesNoninterest bearing 6,356,326 6,170,928 4,891,145 depositsAccrued interest and 187,801 159,917 183,871 other liabilitiesTotal noninterest 6,544,127 6,330,845 5,075,016 bearing liabilitiesEquity 2,183,298 2,091,609 1,772,086 Total Liabilities and $ 18,608,775 $ 18,293,756 $ 15,167,225 EquityNet interest income,fully tax-equivalent $ 144,257 $ 142,980 $ 123,887 (non-GAAP)^(1)(3)Net interest spread^(1) 3.23 % 3.29 % 3.40 %Net interest income,fully tax-equivalent 3.34 % 3.41 % 3.55 %(non-GAAP^)(1)(3) tototal earning assetsInterest bearingliabilities to earning 57.71 % 58.69 % 59.99 % assets (1) Computed on a tax-equivalent basis using an effective tax rate of 21%. (2) Nonaccrual loans and loans held for sale are included in the average loansoutstanding.(3) Refer to "Non-GAAP Measures" in this earnings release for additionalinformation on the usage and presentation of these non-GAAP measures, and referto these financial tables for the reconciliations to the most directlycomparable GAAP measures.

HEARTLAND FINANCIAL USA, INC.CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)DOLLARS IN THOUSANDS For the Nine Months Ended September 30, 2021 September 30, 2020 Average Interest Rate Average Interest Rate Balance BalanceEarning Assets Securities: Taxable $ 5,935,295 $ 94,373 2.13 % $ 3,546,471 $ 70,109 2.64 %Nontaxable^(1) 743,534 17,308 3.11 384,026 11,074 3.85 Total 6,678,829 111,681 2.24 % 3,930,497 81,183 2.76 %securitiesInterestbearingdeposits withother banks 266,701 258 0.13 202,390 847 0.56 and othershort-terminvestmentsFederal funds 4,622 1 0.03 ? ? ? soldLoans:^(2) Commercial and 2,519,608 85,008 4.51 % 2,463,546 90,990 4.93 %industrial^(1)PPP loans 879,489 32,521 4.94 683,262 13,479 2.64 Owner occupiedcommercial 1,876,929 59,710 4.25 1,440,981 53,610 4.97 real estateNon-owneroccupied 1,961,016 65,984 4.50 1,534,293 57,445 5.00 commercialreal estateReal estate 819,452 28,501 4.65 1,056,493 37,062 4.69 constructionAgriculturaland 676,091 22,733 4.50 533,290 19,178 4.80 agriculturalreal estateResidential 844,337 28,153 4.46 796,497 28,922 4.85 mortgageConsumer 404,384 15,408 5.09 416,654 17,002 5.45 Less:allowance for (127,718 ) ? ? (100,242 ) ? ? creditlosses-loansNet loans 9,853,588 338,018 4.59 8,824,774 317,688 4.81 Total earning 16,803,740 449,958 3.58 % 12,957,661 399,718 4.12 %assetsNonearning 1,487,704 1,281,490 AssetsTotal Assets $ 18,291,444 $ 14,239,151 InterestBearing LiabilitiesSavings $ 8,211,478 $ 6,903 0.11 % $ 6,564,582 $ 14,394 0.29 %Time deposits 1,166,858 4,726 0.54 1,092,698 11,284 1.38 Short-term 182,583 348 0.25 117,526 435 0.49 borrowingsOther 328,887 9,378 3.81 331,915 10,514 4.23 borrowingsTotal interestbearing 9,889,806 21,355 0.29 % 8,106,721 36,627 0.60 %liabilitiesNoninterestBearing LiabilitiesNoninterestbearing 6,104,058 4,315,335 depositsAccruedinterest and 180,752 159,089 otherliabilitiesTotalnoninterest 6,284,810 4,474,424 bearingliabilitiesStockholders' 2,116,828 1,658,006 EquityTotalLiabilitiesand $ 18,291,444 $ 14,239,151 Stockholders'EquityNet interestincome, fullytax-equivalent $ 428,603 $ 363,091 (non-GAAP)^(1)(3)Net interest 3.29 % 3.52 %spread^(1)Net interestincome, fullytax-equivalent 3.41 % 3.74 %(non-GAAP)^(1)(3) to totalearning assetsInterestbearing 58.85 % 62.56 % liabilities toearning assets (1) Computed on a tax-equivalent basis using an effective tax rate of 21%. (2) Nonaccrual loans and loans held for sale are included in the average loansoutstanding.(3) Refer to "Non-GAAP Measures" in this earnings release for additionalinformation on the usage and presentation of these non-GAAP measures, and referto these financial tables for the reconciliations to the most directlycomparable GAAP measures.

HEARTLAND FINANCIAL USA, INC.SELECTED FINANCIAL DATA - SUBSIDIARY BANKS (Unaudited)DOLLARS IN THOUSANDS As of and For the Quarter Ended 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020Total AssetsArizonaBank & $ 1,808,943 $ 1,645,816 $ 1,614,740 $ 1,529,800 $ 1,039,253 TrustBank ofBlue 1,460,751 1,419,003 1,425,434 1,376,080 1,424,261 ValleyCitywide 2,685,554 2,611,842 2,632,199 2,628,963 2,639,516 BanksDubuqueBank and 1,968,612 1,990,040 1,932,234 1,853,078 1,838,260 TrustCompanyFirstBank & 2,855,671 2,882,969 2,991,053 3,171,961 1,289,187 TrustIllinoisBank & 1,680,558 1,671,240 1,584,561 1,525,503 1,500,012 TrustMinnesotaBank & 872,291 955,638 995,692 1,000,168 1,007,548 TrustNewMexico 2,586,951 2,494,257 2,356,918 2,032,637 2,002,663 Bank &TrustPremierValley 1,198,540 1,126,807 1,062,607 1,076,615 1,042,437 BankRockyMountain 718,956 646,821 620,800 616,157 617,169 BankWisconsinBank & 1,209,954 1,252,096 1,264,009 1,267,488 1,262,069 TrustTotal DepositsArizonaBank & $ 1,617,732 $ 1,450,248 $ 1,453,888 $ 1,357,158 $ 886,174 TrustBank ofBlue 1,192,868 1,168,617 1,178,114 1,138,264 1,142,910 ValleyCitywide 2,282,703 2,174,237 2,231,320 2,181,511 2,163,051 BanksDubuqueBank and 1,705,753 1,471,564 1,565,782 1,456,908 1,591,561 TrustCompanyFirstBank & 2,367,353 2,361,391 2,427,920 2,622,716 936,366 TrustIllinoisBank & 1,509,847 1,512,106 1,426,426 1,338,677 1,307,513 TrustMinnesotaBank & 734,292 762,549 813,693 789,555 804,045 TrustNewMexico 2,206,099 2,195,838 2,077,304 1,749,963 1,747,527 Bank &TrustPremierValley 988,579 963,459 896,715 836,984 855,913 BankRockyMountain 602,155 568,961 549,894 538,012 533,429 BankWisconsinBank & 1,048,367 1,093,119 1,067,735 1,057,369 1,011,843 Trust

HEARTLAND FINANCIAL USA, INC.CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA AND FULL TIME EQUIVALENT EMPLOYEEDATA For the Quarter Ended 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020Reconciliationof AnnualizedReturn onAverage TangibleCommon Equity(non-GAAP)Net incomeavailable tocommon $ 53,911 $ 59,593 $ 50,801 $ 37,795 $ 45,521 stockholders(GAAP)Plus coredeposit andcustomerrelationship 1,814 1,907 1,988 1,975 1,969 intangiblesamortization,net of tax^(1)Net incomeavailable tocommonstockholders $ 55,725 $ 61,500 $ 52,789 $ 39,770 $ 47,490 excludingintangibleamortization(non-GAAP) Average common $ 2,072,593 $ 1,980,904 $ 1,963,674 $ 1,769,575 $ 1,661,381 equity (GAAP)Less average 576,005 576,005 576,005 488,151 446,345 goodwillLess averagecore depositand customer 36,279 38,614 41,399 42,733 42,145 relationshipintangibles,netAveragetangible $ 1,460,309 $ 1,366,285 $ 1,346,270 $ 1,238,691 $ 1,172,891 common equity(non-GAAP)Annualizedreturn on 10.32 % 12.07 % 10.49 % 8.50 % 10.90 %average commonequity (GAAP)Annualizedreturn onaverage 15.14 % 18.05 % 15.90 % 12.77 % 16.11 %tangiblecommon equity(non-GAAP) Reconciliationof AnnualizedNet Interest Margin, FullyTax-Equivalent(non-GAAP)Net Interest $ 142,543 $ 141,218 $ 139,605 $ 132,575 $ 122,497 Income (GAAP)Plustax-equivalent 1,714 1,762 1,761 1,529 1,390 adjustment^(1)Net interestincome, fully $ 144,257 $ 142,980 $ 141,366 $ 134,104 $ 123,887 tax-equivalent(non-GAAP) Average $ 17,123,824 $ 16,819,978 $ 16,460,124 $ 15,042,079 $ 13,868,360 earning assets Annualized netinterest 3.30 % 3.37 % 3.44 % 3.51 % 3.51 %margin (GAAP)Annualized netinterestmargin, fully 3.34 3.41 3.48 3.55 3.55 tax-equivalent(non-GAAP)Net purchaseaccountingdiscountamortizationon loans 0.08 0.09 0.12 0.10 0.10 included inannualized netinterestmargin

Reconciliationof TangibleBook Value Per Common Share(non-GAAP)Common equity $ 2,061,547 $ 2,049,081 $ 1,945,502 $ 1,968,526 $ 1,700,899 (GAAP)Less goodwill 576,005 576,005 576,005 576,005 446,345 Less coredeposit andcustomer 35,157 37,452 39,867 42,383 40,520 relationshipintangibles,netTangiblecommon equity $ 1,450,385 $ 1,435,624 $ 1,329,630 $ 1,350,138 $ 1,214,034 (non-GAAP) Common sharesoutstanding, 42,250,092 42,245,452 42,173,675 42,093,862 36,885,390 net oftreasury stockCommon equity(book value) $ 48.79 $ 48.50 $ 46.13 $ 46.77 $ 46.11 per share(GAAP)Tangible bookvalue per $ 34.33 $ 33.98 $ 31.53 $ 32.07 $ 32.91 common share(non-GAAP) Reconciliationof TangibleCommon Equity Ratio(non-GAAP)Tangiblecommon equity $ 1,450,385 $ 1,435,624 $ 1,329,630 $ 1,350,138 $ 1,214,034 (non-GAAP) Total assets $ 18,996,225 $ 18,371,006 $ 18,244,427 $ 17,908,339 $ 15,612,664 (GAAP)Less goodwill 576,005 576,005 576,005 576,005 446,345 Less coredeposit andcustomer 35,157 37,452 39,867 42,383 40,520 relationshipintangibles,netTotal tangibleassets $ 18,385,063 $ 17,757,549 $ 17,628,555 $ 17,289,951 $ 15,125,799 (non-GAAP)Tangiblecommon equity 7.89 % 8.08 % 7.54 % 7.81 % 8.03 %ratio(non-GAAP) (1) Computed on a tax-equivalent basis using an effective tax rate of 21%.

HEARTLAND FINANCIAL USA, INC.CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATAReconciliationof Efficiency For the Quarter EndedRatio(non-GAAP) 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020

Net interest $ 142,543 $ 141,218 $ 139,605 $ 132,575 $ 122,497 income (GAAP)Tax-equivalent 1,714 1,762 1,761 1,529 1,390 adjustment^(1)Fullytax-equivalent 144,257 142,980 141,366 134,104 123,887 net interestincomeNoninterest 32,724 33,164 30,317 32,621 31,216 incomeSecurities(gains)/ (1,535 ) (2,842 ) 30 (2,829 ) (1,300 ) losses, netUnrealized(gain)/loss onequity (112 ) (83 ) 110 (36 ) (155 ) securities,netValuationadjustment on (195 ) 526 (917 ) 102 120 servicingrightsAdjustedrevenue $ 175,139 $ 173,745 $ 170,906 $ 163,962 $ 153,768 (non-GAAP) Totalnoninterest $ 110,627 $ 103,376 $ 102,423 $ 99,269 $ 90,396 expenses(GAAP)Less: Core depositand customerrelationship 2,295 2,415 2,516 2,501 2,492 intangiblesamortizationPartnershipinvestment in 2,374 1,345 35 1,899 927 tax creditprojects(Gain)/loss onsales/ (3 ) 183 194 2,621 1,763 valuation ofassets, netAcquisition,integrationand 204 210 2,928 2,186 1,146 restructuringcostsAdjustednoninterest $ 105,757 $ 99,223 $ 96,750 $ 90,062 $ 84,068 expenses(non-GAAP)Efficiencyratio, fully 60.38 % 57.11 % 56.61 % 54.93 % 54.67 %tax-equivalent(non-GAAP) Acquisition,integrationand restructuringcostsSalaries andemployee $ ? $ 44 $ 534 $ 232 $ ? benefitsOccupancy ? 1 9 ? ? Furniture and 7 41 607 423 496 equipmentProfessional 145 63 670 1,422 476 feesAdvertising 11 6 156 42 8 (Gain)/loss onsales/ 39 ? ? ? ? valuations ofassets, netOthernoninterest 2 55 952 67 166 expensesTotalacquisition,integration $ 204 $ 210 $ 2,928 $ 2,186 $ 1,146 andrestructuringcostsAfter taximpact ondiluted $ ? $ ? $ 0.05 $ 0.04 $ 0.02 earnings percommon share^(1) (1) Computed on a tax-equivalent basis using an effective tax rate of 21%.

HEARTLAND FINANCIAL USA, INC.CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA For the Quarter Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020Reconciliationof AnnualizedReturn onAverage TangibleCommon Equity(non-GAAP)Net incomeavailable tocommon $ 53,911 $ 45,521 $ 164,305 $ 95,692 stockholders(GAAP)Plus coredeposit andcustomerrelationship 1,814 1,969 5,709 6,454 intangiblesamortization,net of tax^(1)Net incomeavailable tocommonstockholders $ 55,725 $ 47,490 $ 170,014 $ 102,146 excludingintangibleamortization(non-GAAP) Average common $ 2,072,593 $ 1,661,381 $ 2,006,123 $ 1,618,811 equity (GAAP)Less average 576,005 446,345 576,005 446,345 goodwillLess averagecore depositand customer 36,279 42,145 38,745 44,824 relationshipintangibles,netAveragetangible $ 1,460,309 $ 1,172,891 $ 1,391,373 $ 1,127,642 common equity(non-GAAP)Annualizedreturn on 10.32 % 10.90 % 10.95 % 7.90 %average commonequity (GAAP)Annualizedreturn onaverage 15.14 % 16.11 % 16.34 % 12.10 %tangiblecommon equity(non-GAAP) Reconciliationof AnnualizedNet Interest Margin, FullyTax-Equivalent(non-GAAP)Net Interest $ 142,543 $ 122,497 $ 423,366 $ 359,154 Income (GAAP)Plustax-equivalent 1,714 1,390 5,237 3,937 adjustment^(1)Net interestincome, fully $ 144,257 $ 123,887 $ 428,603 $ 363,091 tax-equivalent(non-GAAP) Average $ 17,123,824 $ 13,868,360 $ 16,803,740 $ 12,957,661 earning assets Annualized netinterest 3.30 % 3.51 % 3.37 % 3.70 %margin (GAAP)Annualized netinterestmargin, fully 3.34 3.55 3.41 3.74 tax-equivalent(non-GAAP)Purchaseaccountingdiscountamortizationon loans 0.08 0.10 0.10 0.12 included inannualized netinterestmargin (1) Computed on a tax-equivalent basis using an effective tax rate of 21%.

HEARTLAND FINANCIAL USA, INC.CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATAReconciliation of For the Quarter Ended For the Nine Months EndedEfficiency Ratio September 30, September 30,(non-GAAP) 2021 2020 2021 2020

Net interest $ 142,543 $ 122,497 $ 423,366 $ 359,154 income (GAAP)Tax-equivalent 1,714 1,390 5,237 3,937 adjustment^(1)Fullytax-equivalent 144,257 123,887 428,603 363,091 net interestincomeNoninterest 32,724 31,216 96,205 87,670 incomeSecurities gains, (1,535 ) (1,300 ) (4,347 ) (4,964 ) netUnrealized (gain)/loss on equity (112 ) (155 ) (85 ) (604 ) securities, netValuationadjustment on (195 ) 120 (586 ) 1,676 servicing rightsAdjusted revenue $ 175,139 $ 153,768 $ 519,790 $ 446,869 (non-GAAP) Total noninterest $ 110,627 $ 90,396 $ 316,426 $ 271,694 expenses (GAAP)Less: Core deposit andcustomerrelationship 2,295 2,492 7,226 8,169 intangiblesamortizationPartnershipinvestment in tax 2,374 927 3,754 1,902 credit projectsLoss on sales/valuation of (3 ) 1,763 374 2,480 assets, netAcquisition,integration and 204 1,146 3,342 3,195 restructuringcostsAdjustednoninterest $ 105,757 $ 84,068 $ 301,730 $ 255,948 expenses(non-GAAP)Efficiency ratio,fully 60.38 % 54.67 % 58.05 % 57.28 %tax-equivalent(non-GAAP) Acquisition,integration and restructuringcostsSalaries and $ ? $ ? $ 578 $ 166 employee benefitsOccupancy ? ? 10 ? Furniture and 7 496 655 535 equipmentProfessional fees 145 476 878 1,977 Advertising 11 8 173 101 (Gain)/loss onsales/valuations 39 ? 39 ? of assets, netOther noninterest 2 166 1,009 416 expensesTotalacquisition,integration and $ 204 $ 1,146 $ 3,342 $ 3,195 restructuringcostsAfter tax impacton diluted $ ? $ 0.02 $ 0.06 $ 0.07 earnings percommon share^(1)

(1) Computed on a tax-equivalent basis using an effective tax rate of 21%.

HEARTLAND FINANCIAL USA, INC.CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA AND FULL TIME EQUIVALENT EMPLOYEEDATA As of and For the Quarter Ended 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020PPP I loan $ 74,255 $ 374,174 $ 739,562 $ 957,785 $ 1,128,035 balancesAverage PPP I 174,930 597,703 841,262 1,064,863 1,128,488 loan balances PPP I fee $ 3,886 $ 7,313 $ 7,464 $ 9,109 $ 4,542 incomePPP I interest 403 1,445 2,087 2,697 2,920 incomeTotal PPP Iinterest $ 4,289 $ 8,758 $ 9,551 $ 11,806 $ 7,462 income PPP II loan $ 334,992 $ 455,001 $ 415,766 $ ? $ ? balancesAverage PPP II 427,745 449,856 151,255 ? ? loan balances PPP II fee $ 5,784 $ 1,263 $ 223 $ ? $ ? incomePPP IIinterest 1,113 1,165 375 ? ? incomeTotal PPP IIinterest $ 6,897 $ 2,428 $ 598 $ ? $ ? income Selectedratiosexcludingtotal PPP loans andtotal PPPinterestincomeAnnualized netinterest 3.15 % 3.31 % 3.39 % 3.44 % 3.59 %margin (GAAP)Annualized netinterestmargin, fully 3.20 3.35 3.44 3.48 3.64 tax-equivalent(non-GAAP)^(1)Ratio ofnonperforming 0.88 0.93 1.03 0.97 1.01 loans to totalloansRatio ofnonperformingloans andperforming 0.90 0.95 1.06 1.00 1.16 trouble debtrestructuredloans to totalloansRatio ofnonperforming 0.47 0.52 0.58 0.56 0.59 assets tototal assetsAnnualizedratio of netloancharge-offs/ (0.05 ) 0.13 0.07 0.01 1.05 (recoveries)to averageloansAllowance forloan creditlosses as a 1.24 1.31 1.46 1.45 1.30 percent ofloansAllowance forlendingrelated credit 1.39 1.47 1.63 1.62 1.48 losses as apercent ofloansLoansdelinquent30-89 days as 0.12 0.18 0.18 0.25 0.19 a percent oftotal loansAfter taximpact oftotal PPPinterestincome on $ 0.21 $ 0.21 $ 0.19 $ 0.24 $ 0.16 dilutedearnings percommon share^(1)

As of and For the Nine Months Ended September September 30, 2021 30, 2020Average PPP I loan balances $ 535,524 $ 683,262 Average PPP II loan balances 343,965 ? PPP I and II fee income $ 25,933 $ 8,197 PPP I and II interest income 6,588 5,282 Total PPP I and II interest income $ 32,521 $ 13,479 Selected ratios excluding total PPP loans and total PPP interest incomeAnnualized net interest margin (GAAP) 3.28 % 3.76 %Annualized net interest margin, fully tax-equivalent 3.33 3.80 (non-GAAP)^(1)Annualized ratio of net loan charge-offs to average 0.05 0.47 loans After tax impact of total PPP interest income on $ 0.61 $ 0.29 diluted earnings per common share^(1) (1) Computed on a tax-equivalent basis using an effective tax rate of 21%.

CONTACT:Bryan R. McKeagExecutive Vice PresidentChief Financial Officer(563) 589-1994BMcKeag@htlf.com