GlobeNewswire Inc | Jan 31, 2022 04:00PM EST

January 31, 2022

Highlights

-- Record annual net income available to common stockholders of $211.9 million or $5.00 per diluted common share -- Quarterly net income available to common stockholders of $47.6 million or $1.12 per diluted common share -- Annual loan growth of $689.4 million or 8%, exclusive of Paycheck Protection Program ("PPP") loans -- Quarterly loan growth of $309.0 million or 13% annualized, exclusive of PPP loans -- Nonperforming assets to total assets declined to 0.37% and 30-89 day loan delinquencies fell to 0.07% of total loans -- Net loan charge-offs for the quarter of $637,000 or 0.03% of average loans, and net charge offs for the year of $3.8 million or 0.04% of average loans -- HTLF Board of Directors approved a consolidation plan for its eleven bank charters

Quarter Ended Year Ended December 31, December 31, 2021 2020 2021 2020 Net incomeavailable to common $ 47.6 $ 37.8 $ 211.9 $ 133.5 stockholders (inmillions)Diluted earnings 1.12 0.98 5.00 3.57 per common share Return on average 1.03 % 0.97 % 1.19 % 0.93 %assetsReturn on average 9.15 8.50 10.49 8.06 common equityReturn on averagetangible common 13.47 12.77 15.59 12.28 equity (non-GAAP)^(1)Net interest margin 3.08 3.51 3.29 3.65 Net interestmargin, fully 3.12 3.55 3.33 3.69 tax-equivalent(non-GAAP)^(1)Efficiency ratio,fully-tax 63.86 54.93 59.48 56.65 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 the financial tables for reconciliations to the most directly comparableGAAP measures.

"HTLF completed a successful year with record net income available to commonstockholders of $211.9 million, or $5.00 per diluted common share. Our successwas highlighted by strong loan growth and excellent credit quality."Bruce K. Lee, president and chief executive officer, HTLF

DUBUQUE, Iowa, Jan. 31, 2022 (GLOBE NEWSWIRE) -- Heartland Financial USA, Inc. (NASDAQ: HTLF) today reported the following results for the quarter ended December 31, 2021 compared to the quarter ended December 31, 2020:

-- Net income available to common stockholders of $47.6 million compared to $37.8 million, an increase of $9.8 million or 26%. -- Earnings per diluted common share of $1.12 compared to $0.98, an increase of $0.14 or 14%. -- Net interest income of $137.2 million compared to $132.6 million, an increase of $4.6 million or 3%. -- Return on average common equity of 9.15% and return on average assets of 1.03% compared to 8.50% and 0.97%, respectively. -- Return on average tangible common equity (non-GAAP) was 13.47% compared to 12.77%.

HTLF reported the following results for the year ended December 31, 2021 compared to the year ended December 31, 2020:

-- Net income available to common stockholders of $211.9 million compared to $133.5 million, an increase of $78.4 million or 59%. -- Earnings per diluted common share of $5.00 compared to $3.57, an increase of $1.43 or 40%. -- Net interest income of $560.6 million compared to $491.7 million, an increase of $68.8 million or 14%. -- Return on average common equity was 10.49% and return on average assets was 1.19% compared to 8.06% and 0.93%, respectively. -- Return on average tangible common equity (non-GAAP) of 15.59% compared to 12.28%.

Commenting on HTLF's 2021 results, Bruce K. Lee, HTLFs president and chief executive officer, said, "HTLF completed a successful year with record net income available to common stockholders of $211.9 million, or $5.00 per diluted common share. Our success was highlighted by strong loan growth and excellent credit quality."

Recent Developments

In the fourth quarter of 2021, HTLF began evaluating the consolidation of its eleven bank charters as part of its ongoing efforts to improve operational efficiency. As a result, the HTLF Board of Directors approved a plan to consolidate its eleven bank charters into a single Colorado based charter that will continue to operate under separate bank brands in each market. The plan remains subject to regulatory approval. The consolidation project is currently underway and is expected to be completed by the end of 2023.

Net Interest Income and Net Interest Margin

Net interest margin, expressed as a percentage of average earning assets, was 3.08% (3.12% on a fully tax-equivalent basis, non-GAAP) during the fourth quarter of 2021, compared to 3.51% (3.55% on a fully tax-equivalent basis, non-GAAP) during the fourth quarter of 2020.

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

-- Total interest income was $144.0 million, which was an increase of $3.2 million or 2% from $140.8 million and primarily attributable to an increase in average earning assets partially offset by lower yields. -- Total interest income on a tax-equivalent basis was $146.0 million, which was an increase of $3.7 million or 3% from $142.4 million. -- Average earning assets increased $2.64 billion or 18% to $17.68 billion compared to $15.04 billion, which was primarily attributable to recent acquisitions and loan growth, including PPP loans. -- The average rate on earning assets decreased 49 basis points to 3.28% compared to 3.77%, which was primarily due to recent decreases in market interest rates and a shift in earning asset mix. Total average securities were 44% of total average earning assets compared to 37%.

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

-- Total interest expense was $6.8 million, a decrease of $1.4 million or 17% from $8.3 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 Heartland's interest bearing liabilities decreased to 0.27% compared to 0.36%, which was primarily due to recent decreases in market interest rates. -- Average interest bearing deposits increased $1.41 billion or 17% to $9.66 billion from $8.25 billion which was primarily attributable to recent acquisitions and deposit growth. -- The average interest rate paid on Heartland's interest bearing deposits decreased 9 basis points to 0.13% compared to 0.22%. -- Average borrowings decreased $253.7 million to $548.9 million from $802.5 million. The average interest rate paid on Heartland's borrowings was 2.66% compared to 1.81%.

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

-- Net interest income totaled $137.2 million compared to $132.6 million, which was an increase of $4.6 million or 3%. -- Net interest income on a tax-equivalent basis (non-GAAP) totaled $139.2 million compared to $134.1 million, which was an increase of $5.1 million or 4%.

Noninterest Income and Noninterest Expense

Total noninterest income was $32.7 million during the fourth quarter of 2021 compared to $32.6 million during the fourth quarter of 2020, an increase of $109,000 or less than 1%. Significant changes by noninterest income category for the fourth quarter of 2021 compared to the fourth quarter of 2020 were:

-- Service charges and fees increased $2.6 million or 21% to $15.3 million from $12.7 million. The increase was primarily attributable to acquisitions completed in the fourth quarter of 2020. -- Trust fees increased $874,000 or 16% to $6.4 million from $5.5 million. The increase was primarily attributable to market value increases of assets under management. -- Net securities gains totaled $1.6 million compared to $2.8 million, which was a decrease of $1.3 million or 45%. -- Net gains of sales of loans held for sale decreased $3.0 million to $4.2 million compared to $7.1 million, primarily due to a decrease of loans sold to the secondary market.

Total noninterest expense for the fourth quarter of 2021 was $115.4 million compared to $99.3 million for the same quarter of 2020, which was an increase of $16.1 million or 16%. Significant changes within the noninterest expense category for the fourth quarter of 2021 compared to the fourth quarter of 2020 were:

-- Salaries and employee benefits totaled $63.0 million compared to $51.6 million, which was an increase of $11.4 million or 22%. The increase was primarily attributable to higher salary and benefit expenses as a result of more full time equivalent employees, including those from the acquisitions completed in the fourth quarter of 2020 and the addition of specialized commercial and agribusiness lending teams in the third quarter of 2021. Total full time equivalent employees were 2,249 compared to 2,013, which was an increase of 236 or 12%. -- Professional fees totaled $17.6 million compared to $15.1 million, which was an increase of $2.5 million or 17%. The increase was primarily attributable to recent technology and automation projects and acquisitions completed in the fourth quarter of 2020. -- Advertising expense totaled $2.2 million compared to $1.1 million, which was an increase of $1.1 million or 100%. The increase was primarily attributable to the resumption of in-person customer events and the acquisitions completed in the fourth quarter of 2020. -- Net losses on sales/valuation of assets totaled $214,000 compared to $2.6 million. HTLF recorded losses of $481,000 associated with branch optimization activities in the fourth quarter of 2021, which were offset by gains of $267,000 related to sales of repossessed assets. The losses recorded in the fourth quarter of 2020 included $2.3 million of write-downs on fixed assets associated with branch optimization activities. -- Other noninterest expenses totaled $14.6 million compared to $11.0 million, which was an increase of $3.6 million or 33%. The increase was primarily attributable to increased travel expenses and customer entertainment activities as in-person meetings and events resumed in 2021 and the acquisitions completed in the fourth quarter of 2020.

Heartland's effective tax rate was 17.16% for the fourth quarter of 2021 compared to 18.52% for the fourth quarter of 2020. The following items impacted Heartland's fourth quarter 2021 and 2020 tax calculations:

-- Solar energy tax credits of $2.5 million and $461,000. -- Federal low-income housing tax credits of $135,000 and $195,000. -- New markets tax credits of $75,000 compared to $75,000. -- Historic rehabilitation tax credits of $272,000 and $1.1 million. -- Tax-exempt interest income as a percentage of pre-tax income of 9.86% compared to 11.82%. -- Tax benefits of $491,000 and $617,000 related to the release of valuation allowances on deferred tax assets.

For the years ended December 31, 2021 and 2020, Heartland's effective tax rate was 20.10% and 20.72%, respectively.

Total Assets, Total Loans and Total Deposits

Total assets were $19.27 billion at December 31, 2021, an increase of $1.37 billion or 8% from $17.91 billion at year-end 2020. Securities represented 40% and 35% of total assets at December 31, 2021, and December 31, 2020, respectively.

Total loans held to maturity were $9.95 billion at December 31, 2021, $9.85 billion at September 30, 2021 and $10.02 billion at December 31, 2020. Excluding total PPP loans, loans increased $309.0 million or 13% annualized during the fourth quarter of 2021 and $689.4 million or 8% since year-end 2020.

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

-- Commercial and business lending, which includes commercial and industrial PPP, and owner occupied commercial real estate loans, increased $2.5 million or less than 1% to $5.09 billion at December 31, 2021, compared to $5.08 billion at September 30, 2021. PPP loans originated in 2020 ("PPP I") loans decreased $47.2 million or 64%. PPP loans originated in 2021 ("PPP II") decreased $162.2 million or 48%.Excluding total PPP loans, commercial and business lending increased $211.8 million or 5% to $4.89 billion from $4.67 billion. -- Agricultural and agricultural real estate loans totaled $753.8 million compared to $684.7 million, an increase of $69.1 million or 10%.

Significant changes by loan category at December 31, 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 $183.7 million or 3% to $5.09 billion at December 31, 2021, compared to $5.27 billion at December 31, 2020. PPP I loans decreased $930.7 million or 97%. PPP II loans totaled $172.8 million. Excluding total PPP loans, commercial and business lending increased $574.2 million or 13% to $4.89 billion from $4.31 billion. -- Commercial real estate lending, which includes non-owner occupied commercial real estate and construction loans, increased $82.0 million or 3% to $2.87 billion from $2.78 billion. -- Agricultural and agricultural real estate loans totaled $753.8 million, an increase of $39.2 million or 5% from $714.5 million.

Total deposits were $16.42 billion as of December 31, 2021, $16.02 billion as of September 30, 2021 and $14.98 billion at December 31, 2020. Significant deposit changes by category at December 31, 2021 compared to September 30, 2021 included:

-- Demand deposits decreased $42.4 million or 1% to $6.50 billion compared to $6.54 billion. -- Savings deposits increased $481.7 million or 6% to $8.90 billion from $8.42 billion. -- Time deposits decreased $44.3 million or 4% to $1.02 billion from $1.07 billion.

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

-- Demand deposits increased $806.5 million or 14% to $6.50 billion compared to $5.69 billion. -- Savings deposits increased $878.2 million or 11% to $8.90 billion from $8.02 billion. -- Time deposits decreased $247.4 million or 19% to $1.02 billion from $1.27 billion.

Year over year growth in non-time deposits 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 fourth quarter of 2021 was $6.8 million, which was a decrease of $22.9 million from $16.1 million of expense recorded in the fourth quarter of 2020. The provision expense recorded in the fourth quarter of 2020 included $9.6 million of provision expense for loans acquired in the quarter. The provision benefit for the fourth quarter of 2021 was impacted by several factors, including:

-- Decrease in nonperforming loans of $13.3 million to $69.9 million or 0.70% of total loans compared to $83.2 million or 0.84% of total loans at September 30, 2021, and $88.1 million or 0.88% of total loans at December 31, 2020. -- Improved macroeconomic outlook compared to the fourth quarter of 2020 and consistent economic outlook compared to the third quarter of 2021.

Heartland's allowance for credit losses for loans totaled $110.1 million at December 31, 2021, compared to $117.5 million at September 30, 2021, and $131.6 million at December 31, 2020, respectively. The following items have impacted Heartland's allowance for credit losses for loans for the year ended December 31, 2021:

-- Provision benefit for the year ended December 31, 2021, totaled $17.7 million. -- Net charge offs of $3.8 million were recorded for the year or 0.04% of average loans.

Provision and Allowance for Credit Losses for Unfunded Commitments Heartland's allowance for unfunded commitments totaled $15.5 million and $15.3 million at December 31, 2021 and December 31, 2020, respectively. The following impacted Heartland's allowance for credit losses for unfunded commitments during 2020:

-- Provision expense of $1.5 million was recorded for the fourth quarter of 2021, and provision expense for the year ended December 31, 2021 totaled $182,000. -- Unfunded commitments increased $583.3 million or 18% to $3.83 billion at December 31, 2021 compared to $3.25 billion at December 31, 2020.

Total Provision and Allowance for Lending Related Credit LossesThe net provision benefit for lending related credit losses was $5.3 million for the fourth quarter of 2021 compared to provision expense of $17.1 million for the fourth quarter of 2020. The total allowance for lending related credit losses was $125.6 million at December 31, 2021, which was 1.26% of total loans as of December 31, 2021, compared to $146.9 million or 1.47% of total loans as of December 31, 2020. Excluding PPP loans, which are fully guaranteed, the total allowance for lending related credit losses was 1.29% and 1.62% of loans at December 31, 2021 and December 31, 2020, respectively.

Nonperforming Assets

Nonperforming assets decreased $23.1 million or 24% to $71.9 million, which was 0.37% of total assets at December 31, 2021, compared to $95.0 million or 0.53% of total assets at December 31, 2020. Nonperforming loans were $69.9 million or 0.70% of total loans at December 31, 2021, compared to $88.1 million or 0.88% of total loans at December 31, 2020. At December 31, 2021, loans delinquent 30-89 days were 0.07% of total loans compared to 0.23% of total loans at December 31, 2020.

Non-GAAP Financial Measures

This 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 Details

HTLF 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/8779156. 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 January 30, 2023, by logging on to www.htlf.com.

About HTLF

Heartland Financial USA, Inc., operating under the brand name HTLF, is a financial services company with assets of $19.27 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 Statement

This 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, pandemics, persistent inflation, supply chain issues, labor shortages, 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, rising interest rates 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 Year Ended December 31, December 31, 2021 2020 2021 2020 Interest Income Interest and fees $ 107,721 $ 108,865 $ 444,137 $ 424,941 on loansInterest on securities:Taxable 30,637 28,154 125,010 98,263 Nontaxable 5,595 3,735 19,268 12,484 Interest on federal ? ? 1 ? funds soldInterest ondeposits with otherbanks and 86 77 344 924 short-terminvestmentsTotal Interest 144,039 140,831 588,760 536,612 IncomeInterest Expense Interest on 3,168 4,609 14,797 30,287 depositsInterest onshort-term 123 175 471 610 borrowingsInterest on other 3,554 3,472 12,932 13,986 borrowingsTotal Interest 6,845 8,256 28,200 44,883 ExpenseNet Interest Income 137,194 132,575 560,560 491,729 Provision (benefit) (5,313 ) 17,072 (17,575 ) 67,066 for credit lossesNet Interest IncomeAfter Provision for 142,507 115,503 578,135 424,663 Credit LossesNoninterest Income Service charges and 15,349 12,725 59,703 47,467 feesLoan servicing 781 997 3,276 2,977 incomeTrust fees 6,380 5,506 24,417 20,862 Brokerage andinsurance 962 779 3,546 2,756 commissionsSecurities gains 1,563 2,829 5,910 7,793 (losses), netUnrealized gain(loss) on equity (27 ) 36 58 640 securities, netNet gains on saleof loans held for 4,151 7,104 20,605 28,515 saleValuationadjustment on 502 (102 ) 1,088 (1,778 )servicing rightsIncome on bankowned life 1,056 1,021 3,762 3,554 insuranceOther noninterest 2,013 1,726 6,570 7,505 incomeTotal Noninterest 32,730 32,621 128,935 120,291 IncomeNoninterest Expense Salaries and 63,031 51,615 240,114 202,668 employee benefitsOccupancy 7,282 6,849 29,965 26,554 Furniture and 3,364 3,913 13,323 12,514 equipmentProfessional fees 17,631 15,117 64,600 54,068 Advertising 2,218 1,107 7,257 5,235 Core deposit andcustomerrelationship 2,169 2,501 9,395 10,670 intangiblesamortizationOther real estateand loan collection 363 468 990 1,340 expenses, net(Gain) loss onsales/valuations of 214 2,621 588 5,101 assets, netAcquisition,integration and 1,989 2,186 5,331 5,381 restructuring costsPartnershipinvestment in tax 2,549 1,899 6,303 3,801 credit projectsOther noninterest 14,576 10,993 53,946 43,631 expensesTotal Noninterest 115,386 99,269 431,812 370,963 ExpenseIncome Before 59,851 48,855 275,258 173,991 Income TaxesIncome taxes 10,271 9,046 55,335 36,053 Net Income 49,580 39,809 219,923 137,938 Preferred dividends (2,012 ) (2,014 ) (8,050 ) (4,451 )Net IncomeAvailable to Common $ 47,568 $ 37,795 $ 211,873 $ 133,487 StockholdersEarnings per common $ 1.12 $ 0.98 $ 5.00 $ 3.57 share-dilutedWeighted averageshares 42,479,442 38,534,082 42,410,611 37,356,524 outstanding-diluted

HEARTLAND FINANCIAL USA, INC.CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA For the Quarter Ended 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020Interest Income Interest and fees $ 107,721 $ 112,062 $ 111,915 $ 112,439 $ 108,865 on loansInterest on securities:Taxable 30,637 32,384 31,546 30,443 28,154 Nontaxable 5,595 4,609 4,561 4,503 3,735 Interest on federal ? ? ? 1 ? funds soldInterest ondeposits with otherbanks and 86 132 60 66 77 short-terminvestmentsTotal Interest 144,039 149,187 148,082 147,452 140,831 IncomeInterest Expense Interest on 3,168 3,444 3,790 4,395 4,609 depositsInterest onshort-term 123 98 98 152 175 borrowingsInterest on other 3,554 3,102 2,976 3,300 3,472 borrowingsTotal Interest 6,845 6,644 6,864 7,847 8,256 ExpenseNet Interest Income 137,194 142,543 141,218 139,605 132,575 Provision (benefit) (5,313 ) (4,534 ) (7,080 ) (648 ) 17,072 for credit lossesNet Interest IncomeAfter Provision for 142,507 147,077 148,298 140,253 115,503 Credit LossesNoninterest Income Service charges and 15,349 15,551 15,132 13,671 12,725 feesLoan servicing 781 784 873 838 997 incomeTrust fees 6,380 6,221 6,039 5,777 5,506 Brokerage andinsurance 962 866 865 853 779 commissionsSecurities gains 1,563 1,535 2,842 (30 ) 2,829 (losses), netUnrealized gain(loss) on equity (27 ) 112 83 (110 ) 36 securities, netNet gains on saleof loans held for 4,151 5,281 4,753 6,420 7,104 saleValuationadjustment on 502 195 (526 ) 917 (102 )servicing rightsIncome on bankowned life 1,056 940 937 829 1,021 insuranceOther noninterest 2,013 1,239 2,166 1,152 1,726 incomeTotal Noninterest 32,730 32,724 33,164 30,317 32,621 IncomeNoninterest Expense Salaries and 63,031 60,689 57,332 59,062 51,615 employee benefitsOccupancy 7,282 7,366 7,399 7,918 6,849 Furniture and 3,364 3,365 3,501 3,093 3,913 equipmentProfessional fees 17,631 17,242 16,237 13,490 15,117 Advertising 2,218 1,921 1,649 1,469 1,107 Core deposit andcustomerrelationship 2,169 2,295 2,415 2,516 2,501 intangiblesamortizationOther real estateand loan collection 363 78 414 135 468 expenses, net(Gain) loss onsales/valuations of 214 (3 ) 183 194 2,621 assets, netAcquisition,integration and 1,989 204 210 2,928 2,186 restructuring costsPartnershipinvestment in tax 2,549 2,374 1,345 35 1,899 credit projectsOther noninterest 14,576 15,096 12,691 11,583 10,993 expensesTotal Noninterest 115,386 110,627 103,376 102,423 99,269 ExpenseIncome Before 59,851 69,174 78,086 68,147 48,855 Income TaxesIncome taxes 10,271 13,250 16,481 15,333 9,046 Net Income 49,580 55,924 61,605 52,814 39,809 Preferred dividends (2,012 ) (2,013 ) (2,012 ) (2,013 ) (2,014 )Net IncomeAvailable to Common $ 47,568 $ 53,911 $ 59,593 $ 50,801 $ 37,795 StockholdersEarnings per common $ 1.12 $ 1.27 $ 1.41 $ 1.20 $ 0.98 share-dilutedWeighted averageshares 42,479,442 42,415,993 42,359,873 42,335,747 38,534,082 outstanding-diluted

HEARTLAND FINANCIAL USA, INC.CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA As of 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020Assets Cash and due from $ 163,895 $ 192,247 $ 208,702 $ 198,177 $ 219,243 banksInterest bearingdeposits withother banks and 271,704 135,158 240,426 269,685 118,660 other short-terminvestmentsCash and cash 435,599 327,405 449,128 467,862 337,903 equivalentsTime deposits inother financial 2,894 3,138 3,138 3,138 3,129 institutionsSecurities: Carried at fair 7,530,374 7,449,936 6,543,978 6,370,495 6,127,975 valueHeld to maturity, 84,709 85,354 85,439 85,293 88,839 at costOtherinvestments, at 82,567 83,332 76,809 74,935 75,253 costLoans held for 21,640 37,078 33,248 43,037 57,949 saleLoans: Held to maturity 9,954,572 9,854,907 10,012,014 10,050,456 10,023,051 Allowance for (110,088 ) (117,533 ) (120,726 ) (130,172 ) (131,606 )credit lossesLoans, net 9,844,484 9,737,374 9,891,288 9,920,284 9,891,445 Premises,furniture and 215,827 221,996 226,358 225,047 226,094 equipment, netGoodwill 576,005 576,005 576,005 576,005 576,005 Core deposit andcustomer 32,988 35,157 37,452 39,867 42,383 relationshipintangibles, netServicing rights, 6,890 6,351 6,201 6,953 6,052 netCash surrendervalue on life 191,722 190,576 189,619 188,521 187,664 insuranceOther real 1,927 4,744 6,314 6,236 6,624 estate, netOther assets 246,923 237,779 246,029 236,754 281,024 Total Assets $ 19,274,549 $ 18,996,225 $ 18,371,006 $ 18,244,427 $ 17,908,339 Liabilities and EquityLiabilities Deposits: Demand $ 6,495,326 $ 6,537,722 $ 6,299,289 $ 6,175,946 $ 5,688,810 Savings 8,897,909 8,416,204 8,189,223 8,179,251 8,019,704 Time 1,024,020 1,068,317 1,126,606 1,203,854 1,271,391 Total deposits 16,417,255 16,022,243 15,615,118 15,559,051 14,979,905 Short-term 131,597 265,620 152,563 140,597 167,872 borrowingsOther borrowings 372,072 371,765 271,244 349,514 457,042 Accrued expensesand other 171,447 164,345 172,295 139,058 224,289 liabilitiesTotal Liabilities 17,092,371 16,823,973 16,211,220 16,188,220 15,829,108 Stockholders' EquityPreferred equity 110,705 110,705 110,705 110,705 110,705 Common stock 42,275 42,250 42,245 42,174 42,094 Capital surplus 1,071,956 1,068,913 1,066,765 1,063,497 1,062,083 Retained earnings 962,994 926,834 883,484 833,171 791,630 Accumulated othercomprehensive (5,752 ) 23,550 56,587 6,660 72,719 income/(loss)Total Equity 2,182,178 2,172,252 2,159,786 2,056,207 2,079,231 Total Liabilities $ 19,274,549 $ 18,996,225 $ 18,371,006 $ 18,244,427 $ 17,908,339 and Equity

HEARTLAND FINANCIAL USA, INC.CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA For the Quarter Ended 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020Average Balances Assets $ 19,151,691 $ 18,608,775 $ 18,293,756 $ 17,964,723 $ 16,401,152 Loans, net of 9,886,027 9,920,047 10,072,071 9,952,152 9,366,430 unearnedDeposits 16,265,476 15,817,778 15,576,345 15,044,561 13,518,020 Earning assets 17,681,917 17,123,824 16,819,978 16,460,124 15,042,079 Interest bearing 10,207,255 9,881,350 9,871,302 9,917,159 9,053,855 liabilitiesCommon equity 2,061,973 2,072,593 1,980,904 1,963,674 1,769,575 Totalstockholders' 2,172,678 2,183,298 2,091,609 2,074,379 1,880,280 equityTangible commonequity (non-GAAP)^ 1,451,950 1,460,309 1,366,285 1,346,270 1,238,691 (1) Key Performance RatiosAnnualized return 1.03 % 1.19 % 1.35 % 1.19 % 0.97 %on average assetsAnnualized returnon average common 9.15 10.32 12.07 10.49 8.50 equity (GAAP)Annualized returnon averagetangible common 13.47 15.14 18.05 15.90 12.77 equity (non-GAAP)^(1)Annualized ratioof net charge-offs 0.03 (0.05 ) 0.12 0.06 0.01 (recoveries) toaverage loansAnnualized netinterest margin 3.08 3.30 3.37 3.44 3.51 (GAAP)Annualized netinterest margin,fully 3.12 3.34 3.41 3.48 3.55 tax-equivalent(non-GAAP)^(1)Efficiency ratio,fully 63.86 60.38 57.11 56.61 54.93 tax-equivalent(non-GAAP)^(1)

For the Quarter Ended For the Year Ended December 31, December 31, 2021 2020 2021 2020 Average BalancesAssets $ 19,151,691 $ 16,401,152 $ 18,508,273 $ 14,782,605 Loans, net of 9,886,027 9,366,430 9,957,290 9,035,973 unearnedDeposits 16,265,476 13,518,020 15,679,773 12,361,077 Earning assets 17,681,917 15,042,079 17,025,088 13,481,613 Interestbearing 10,207,255 9,053,855 9,969,820 8,344,798 liabilitiesCommon equity 2,061,973 1,769,575 2,020,200 1,656,708 Totalstockholders' 2,172,678 1,880,280 2,130,905 1,713,878 equityTangiblecommon equity 1,451,950 1,238,691 1,406,641 1,155,556 (non-GAAP)^(1) KeyPerformance RatiosAnnualizedreturn on 1.03 % 0.97 % 1.19 % 0.93 %average assetsAnnualizedreturn on 9.15 8.50 10.49 8.06 average commonequity (GAAP)Annualizedreturn onaverage 13.47 12.77 15.59 12.28 tangiblecommon equity(non-GAAP)^(1)Annualizedratio of netcharge-offs 0.03 0.01 0.04 0.32 (recoveries)to averageloansAnnualized netinterest 3.08 3.51 3.29 3.65 margin (GAAP)Annualized netinterestmargin, fully 3.12 3.55 3.33 3.69 tax-equivalent(non-GAAP)^(1)Efficiencyratio, fully 63.86 54.93 59.48 56.65 tax-equivalent^(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 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020Common Share DataBook value per $ 49.00 $ 48.79 $ 48.50 $ 46.13 $ 46.77 common shareTangible bookvalue per $ 34.59 $ 34.33 $ 33.98 $ 31.53 $ 32.07 common share(non-GAAP)^(1)Common sharesoutstanding, 42,275,264 42,250,092 42,245,452 42,173,675 42,093,862 net of treasurystockTangible commonequity ratio 7.84 % 7.89 % 8.08 % 7.54 % 7.81 %(non-GAAP)^(1) Other SelectedTrend InformationEffective tax 17.16 % 19.15 % 21.11 % 22.50 % 18.52 %rateFull timeequivalent 2,249 2,163 2,091 2,131 2,013 employees Loans Held to MaturityCommercial and $ 2,645,085 $ 2,538,369 $ 2,518,908 $ 2,421,260 $ 2,534,799 industrialPaycheckProtection 199,883 409,247 829,175 1,155,328 957,785 Program ("PPP")Owner occupiedcommercial real 2,240,334 2,135,227 1,940,134 1,837,559 1,776,406 estateCommercial andbusiness 5,085,302 5,082,843 5,288,217 5,414,147 5,268,990 lendingNon-owneroccupied 2,010,591 2,020,487 1,987,369 1,967,183 1,921,481 commercial realestateReal estate 856,119 814,001 854,295 796,027 863,220 constructionCommercial real 2,866,710 2,834,488 2,841,664 2,763,210 2,784,701 estate lendingTotalcommercial 7,952,012 7,917,331 8,129,881 8,177,357 8,053,691 lendingAgriculturaland 753,753 684,670 679,608 683,969 714,526 agriculturalreal estateResidential 829,283 840,356 800,884 786,994 840,442 mortgageConsumer 419,524 412,550 401,641 402,136 414,392 Total loansheld to $ 9,954,572 $ 9,854,907 $ 10,012,014 $ 10,050,456 $ 10,023,051 maturity Total unfundedloan $ 3,830,219 $ 3,583,417 $ 3,433,062 $ 3,306,042 $ 3,246,953 commitments (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 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020Allowance forCredit Losses-LoansBalance,beginning of $ 117,533 $ 120,726 $ 130,172 $ 131,606 $ 103,377 periodAllowance foracquiredpurchased ? ? ? ? 12,313 creditdeterioratedloansProvision(benefit) for (6,808 ) (4,448 ) (6,466 ) 16 16,132 credit lossesCharge-offs (1,953 ) (1,167 ) (3,497 ) (2,126 ) (1,104 )Recoveries 1,316 2,422 517 676 888 Balance, end of $ 110,088 $ 117,533 $ 120,726 $ 130,172 $ 131,606 period Allowance forUnfunded CommitmentsBalance,beginning of $ 13,967 $ 14,002 $ 14,619 $ 15,280 $ 14,330 periodProvision(benefit) for 1,495 (35 ) (617 ) (661 ) 950 credit lossesBalance, end of $ 15,462 $ 13,967 $ 14,002 $ 14,619 $ 15,280 period Allowance forlending related $ 125,550 $ 131,500 $ 134,728 $ 144,791 $ 146,886 credit losses Provision for Credit LossesProvision(benefit) for $ (6,808 ) $ (4,448 ) $ (6,466 ) $ 16 $ 6,572 creditlosses-loansProvision forcredit ? ? ? ? 9,560 losses-acquiredloansProvision(benefit) forcredit 1,495 (35 ) (617 ) (661 ) (1,372 )losses-unfundedcommitmentsProvision forcreditlosses-acquired ? ? ? ? 2,322 unfundedcommitmentsProvision forcreditlosses-held to ? (51 ) 3 (3 ) (10 )maturitysecuritiesTotal provision(benefit) for $ (5,313 ) $ (4,534 ) $ (7,080 ) $ (648 ) $ 17,072 credit losses Asset Quality Nonaccrual $ 69,369 $ 82,375 $ 85,268 $ 91,718 $ 87,386 loansLoans past dueninety days or 550 861 97 171 720 moreOther real 1,927 4,744 6,314 6,236 6,624 estate ownedOtherrepossessed 43 166 50 239 240 assetsTotalnonperforming $ 71,889 $ 88,146 $ 91,729 $ 98,364 $ 94,970 assets Performingtroubled debt $ 817 $ 1,817 $ 2,122 $ 2,394 $ 2,370 restructuredloans Nonperforming Assets ActivityBalance,beginning of $ 88,146 $ 91,729 $ 98,364 $ 94,970 $ 85,901 periodNet loan(charge offs) (637 ) 1,255 (2,980 ) (1,450 ) (216 )recoveriesNewnonperforming 5,886 6,908 7,989 14,936 8,664 loansAcquirednonperforming ? ? ? ? 12,781 assetsReduction ofnonperforming (18,429 ) (8,581 ) (10,948 ) (8,884 ) (10,811 )loans^(1)OREO/Repossessed (3,077 ) (3,165 ) (696 ) (1,208 ) (1,349 )assets salesproceedsBalance, end of $ 71,889 $ 88,146 $ 91,729 $ 98,364 $ 94,970 period Asset Quality RatiosRatio ofnonperforming 0.70 % 0.84 % 0.85 % 0.91 % 0.88 %loans to totalloansRatio ofnonperformingloans andperforming 0.71 0.86 0.87 0.94 0.90 trouble debtrestructuredloans to totalloansRatio ofnonperforming 0.37 0.46 0.50 0.54 0.53 assets to totalassetsAnnualizedratio of netloan 0.03 (0.05 ) 0.12 0.06 0.01 charge-offs toaverage loansAllowance forloan creditlosses as a 1.11 1.19 1.21 1.30 1.31 percent ofloansAllowance forlending relatedcredit losses 1.26 1.33 1.35 1.44 1.47 as a percent ofloansAllowance forloan creditlosses as a 157.45 141.20 141.42 141.66 149.37 percent ofnonperformingloansLoansdelinquent30-89 days as a 0.07 0.12 0.17 0.16 0.23 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 December 31, 2021 September 30, 2021 December 31, 2020 Average Interest Rate Average Interest Rate Average Interest Rate Balance Balance BalanceEarning Assets Securities: Taxable $ 6,730,511 $ 30,637 1.81 % $ 6,244,097 $ 32,384 2.06 % $ 4,957,680 $ 28,154 2.26 %Nontaxable^(1) 964,712 7,082 2.91 759,073 5,835 3.05 543,845 4,728 3.46 Total securities 7,695,223 37,719 1.94 7,003,170 38,219 2.17 5,501,525 32,882 2.38 Interest on depositswith other banks and 218,809 86 0.16 322,430 132 0.16 292,436 77 0.10 other short-terminvestmentsFederal funds sold ? ? ? ? ? ? 427 ? ? Loans:^(2) Commercial and 2,614,685 26,465 4.02 2,588,270 28,224 4.33 2,357,056 27,523 4.65 industrial^(1)PPP loans 302,829 8,106 10.62 602,675 11,186 7.36 1,064,863 11,806 4.41 Owner occupiedcommercial real 2,166,768 22,007 4.03 1,990,538 20,048 4.00 1,597,446 18,605 4.63 estateNon-owner occupiedcommercial real 1,996,186 21,744 4.32 1,964,609 22,129 4.47 1,756,443 20,733 4.70 estateReal estate 837,716 9,390 4.45 835,976 9,591 4.55 859,941 9,723 4.50 constructionAgricultural andagricultural real 697,521 7,089 4.03 674,510 7,415 4.36 554,596 6,535 4.69 estateResidential mortgage 853,208 8,615 4.01 855,734 9,068 4.20 785,852 9,288 4.70 Consumer 417,114 4,793 4.56 407,735 4,889 4.76 390,233 5,188 5.29 Less: allowance for (118,142 ) ? ? (121,823 ) ? ? (118,739 ) ? ? credit losses-loansNet loans 9,767,885 108,209 4.40 9,798,224 112,550 4.56 9,247,691 109,401 4.71 Total earning assets 17,681,917 146,014 3.28 % 17,123,824 150,901 3.50 % 15,042,079 142,360 3.77 %Nonearning Assets 1,469,774 1,484,951 1,359,073 Total Assets $ 19,151,691 $ 18,608,775 $ 16,401,152 Interest Bearing LiabilitiesSavings $ 8,609,596 $ 2,160 0.10 % $ 8,364,326 $ 2,240 0.11 % $ 7,176,563 $ 2,166 0.12 %Time deposits 1,048,785 1,008 0.38 1,097,126 1,204 0.44 1,074,746 2,443 0.90 Short-term borrowings 176,956 123 0.28 139,001 98 0.28 268,464 175 0.26 Other borrowings 371,918 3,554 3.79 280,897 3,102 4.38 534,082 3,472 2.59 Total interest 10,207,255 6,845 0.27 % 9,881,350 6,644 0.27 % 9,053,855 8,256 0.36 %bearing liabilitiesNoninterest Bearing LiabilitiesNoninterest bearing 6,607,095 6,356,326 5,266,711 depositsAccrued interest and 164,663 187,801 200,306 other liabilitiesTotal noninterest 6,771,758 6,544,127 5,467,017 bearing liabilitiesEquity 2,172,678 2,183,298 1,880,280 Total Liabilities and $ 19,151,691 $ 18,608,775 $ 16,401,152 EquityNet interest income,fully tax-equivalent $ 139,169 $ 144,257 $ 134,104 (non-GAAP)^(1)(3)Net interest spread^ 3.01 % 3.23 % 3.41 %(1)Net interest income,fully tax-equivalent 3.12 % 3.34 % 3.55 %(non-GAAP) to totalearning assets^(1)(3)Interest bearingliabilities to 57.73 % 57.71 % 60.19 % earning 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 Year Ended December 31, 2021 December 31, 2020 Average Interest Rate Average Interest Rate Balance BalanceEarning Assets Securities: Taxable $ 6,135,732 $ 125,010 2.04 % $ 3,901,202 $ 98,263 2.52 %Nontaxable^(1) 799,283 24,390 3.05 424,199 15,802 3.73 Total 6,935,015 149,400 2.15 4,325,401 114,065 2.64 securitiesInterestbearingdeposits withother banks 254,630 344 0.14 225,024 924 0.41 and othershort-terminvestmentsFederal funds 3,457 1 0.03 107 ? ? soldLoans:^(2) Commercial and 2,543,514 111,473 4.38 2,437,183 118,513 4.86 industrial^(1)PPP loans 734,139 40,627 5.53 779,183 25,285 3.25 Owner occupiedcommercial 1,950,014 81,717 4.19 1,480,109 72,215 4.88 real estateNon-owneroccupied 1,969,910 87,728 4.45 1,589,932 78,178 4.92 commercialreal estateReal estate 824,055 37,891 4.60 1,007,086 46,785 4.65 constructionAgriculturaland 681,493 29,822 4.38 538,646 25,713 4.77 agriculturalreal estateResidential 846,573 36,768 4.34 793,821 38,210 4.81 mortgageConsumer 407,592 20,201 4.96 410,013 22,190 5.41 Less:allowance for (125,304 ) ? ? (104,892 ) ? ? creditlosses-loansNet loans 9,831,986 446,227 4.54 8,931,081 427,089 4.78 Total earning 17,025,088 595,972 3.50 % 13,481,613 542,078 4.02 %assetsNonearning 1,483,185 1,300,992 AssetsTotal Assets $ 18,508,273 $ 14,782,605 InterestBearing LiabilitiesSavings $ 8,311,825 $ 9,063 0.11 % $ 6,718,413 $ 16,560 0.25 %Time deposits 1,137,097 5,734 0.50 1,088,185 13,727 1.26 Short-term 181,165 471 0.26 155,467 610 0.39 borrowingsOther 339,733 12,932 3.81 382,733 13,986 3.65 borrowingsTotal interestbearing 9,969,820 28,200 0.28 % 8,344,798 44,883 0.54 %liabilitiesNoninterestBearing LiabilitiesNoninterestbearing 6,230,851 4,554,479 depositsAccruedinterest and 176,697 169,450 otherliabilitiesTotalnoninterest 6,407,548 4,723,929 bearingliabilitiesEquity 2,130,905 1,713,878 TotalLiabilities $ 18,508,273 $ 14,782,605 and EquityNet interestincome, fullytax-equivalent $ 567,772 $ 497,195 (non-GAAP^)(1)(3)Net interest 3.22 % 3.48 %spread^(1)Net interestincome, fullytax-equivalent 3.33 % 3.69 %(non-GAAP) tototal earningassets^(1)(3)Interestbearing 58.56 % 61.90 % 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 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020Total Assets Arizona Bank & $ 1,969,184 $ 1,808,943 $ 1,645,816 $ 1,614,740 $ 1,529,800TrustBank of Blue 1,441,980 1,460,751 1,419,003 1,425,434 1,376,080ValleyCitywide Banks 2,696,695 2,685,554 2,611,842 2,632,199 2,628,963Dubuque Bankand Trust 2,235,630 1,968,612 1,990,040 1,932,234 1,853,078CompanyFirst Bank & 2,878,173 2,855,671 2,882,969 2,991,053 3,171,961TrustIllinois Bank 1,686,038 1,680,558 1,671,240 1,584,561 1,525,503& TrustMinnesota Bank 865,825 872,291 955,638 995,692 1,000,168& TrustNew Mexico 2,623,597 2,586,951 2,494,257 2,356,918 2,032,637Bank & TrustPremier Valley 1,224,396 1,198,540 1,126,807 1,062,607 1,076,615BankRocky Mountain 713,930 718,956 646,821 620,800 616,157BankWisconsin Bank 1,224,689 1,209,954 1,252,096 1,264,009 1,267,488& TrustTotal Deposits Arizona Bank & $ 1,768,793 $ 1,617,732 $ 1,450,248 $ 1,453,888 $ 1,357,158TrustBank of Blue 1,179,294 1,192,868 1,168,617 1,178,114 1,138,264ValleyCitywide Banks 2,291,912 2,282,703 2,174,237 2,231,320 2,181,511Dubuque Bankand Trust 1,750,071 1,705,753 1,471,564 1,565,782 1,456,908CompanyFirst Bank & 2,397,350 2,367,353 2,361,391 2,427,920 2,622,716TrustIllinois Bank 1,496,262 1,509,847 1,512,106 1,426,426 1,338,677& TrustMinnesota Bank 719,489 734,292 762,549 813,693 789,555& TrustNew Mexico 2,308,939 2,206,099 2,195,838 2,077,304 1,749,963Bank & TrustPremier Valley 1,051,286 988,579 963,459 896,715 836,984BankRocky Mountain 640,757 602,155 568,961 549,894 538,012BankWisconsin Bank 1,070,161 1,048,367 1,093,119 1,067,735 1,057,369& Trust

HEARTLAND FINANCIAL USA, INC.CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA For the Quarter Ended 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020Reconciliationof AnnualizedReturn onAverage TangibleCommon Equity(non-GAAP)Net incomeavailable tocommon $ 47,568 $ 53,911 $ 59,593 $ 50,801 $ 37,795 stockholders(GAAP)Plus coredeposit andcustomerrelationship 1,713 1,814 1,907 1,988 1,975 intangiblesamortization,net of tax^(1)Net incomeavailable tocommonstockholders $ 49,281 $ 55,725 $ 61,500 $ 52,789 $ 39,770 excludingintangibleamortization(non-GAAP) Average common $ 2,061,973 $ 2,072,593 $ 1,980,904 $ 1,963,674 $ 1,769,575 equity (GAAP)Less average 576,005 576,005 576,005 576,005 488,151 goodwillLess averagecore depositand customer 34,018 36,279 38,614 41,399 42,733 relationshipintangibles,netAveragetangible $ 1,451,950 $ 1,460,309 $ 1,366,285 $ 1,346,270 $ 1,238,691 common equity(non-GAAP)Annualizedreturn on 9.15 % 10.32 % 12.07 % 10.49 % 8.50 %average commonequity (GAAP)Annualizedreturn onaverage 13.47 % 15.14 % 18.05 % 15.90 % 12.77 %tangiblecommon equity(non-GAAP) Reconciliationof AnnualizedNet Interest Margin, FullyTax-Equivalent(non-GAAP)Net Interest $ 137,194 $ 142,543 $ 141,218 $ 139,605 $ 132,575 Income (GAAP)Plustax-equivalent 1,975 1,714 1,762 1,761 1,529 adjustment^(1)Net interestincome, fully $ 139,169 $ 144,257 $ 142,980 $ 141,366 $ 134,104 tax-equivalent(non-GAAP) Average $ 17,681,917 $ 17,123,824 $ 16,819,978 $ 16,460,124 $ 15,042,079 earning assets Annualized netinterest 3.08 % 3.30 % 3.37 % 3.44 % 3.51 %margin (GAAP)Annualized netinterestmargin, fully 3.12 3.34 3.41 3.48 3.55 tax-equivalent(non-GAAP)Net purchaseaccountingdiscountamortizationon loans 0.05 0.08 0.09 0.12 0.10 included inannualized netinterestmargin Reconciliationof TangibleBook Value Per Common Share(non-GAAP)Common equity $ 2,071,473 $ 2,061,547 $ 2,049,081 $ 1,945,502 $ 1,968,526 (GAAP)Less goodwill 576,005 576,005 576,005 576,005 576,005 Less coredeposit andcustomer 32,988 35,157 37,452 39,867 42,383 relationshipintangibles,netTangiblecommon equity $ 1,462,480 $ 1,450,385 $ 1,435,624 $ 1,329,630 $ 1,350,138 (non-GAAP) Common sharesoutstanding, 42,275,264 42,250,092 42,245,452 42,173,675 42,093,862 net oftreasury stockCommon equity(book value) $ 49.00 $ 48.79 $ 48.50 $ 46.13 $ 46.77 per share(GAAP)Tangible bookvalue per $ 34.59 $ 34.33 $ 33.98 $ 31.53 $ 32.07 common share(non-GAAP) Reconciliationof TangibleCommon Equity Ratio(non-GAAP)Tangiblecommon equity $ 1,462,480 $ 1,450,385 $ 1,435,624 $ 1,329,630 $ 1,350,138 (non-GAAP) Total assets $ 19,274,549 $ 18,996,225 $ 18,371,006 $ 18,244,427 $ 17,908,339 (GAAP)Less goodwill 576,005 576,005 576,005 576,005 576,005 Less coredeposit andcustomer 32,988 35,157 37,452 39,867 42,383 relationshipintangibles,netTotal tangibleassets $ 18,665,556 $ 18,385,063 $ 17,757,549 $ 17,628,555 $ 17,289,951 (non-GAAP)Tangiblecommon equity 7.84 % 7.89 % 8.08 % 7.54 % 7.81 %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) 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020

Net interest $ 137,194 $ 142,543 $ 141,218 $ 139,605 $ 132,575 income (GAAP)Tax-equivalent 1,975 1,714 1,762 1,761 1,529 adjustment^(1)Fullytax-equivalent 139,169 144,257 142,980 141,366 134,104 net interestincomeNoninterest 32,730 32,724 33,164 30,317 32,621 incomeSecurities (1,563 ) (1,535 ) (2,842 ) 30 (2,829 )gains, netUnrealized(gain) loss onequity 27 (112 ) (83 ) 110 (36 )securities,netValuationadjustment on (502 ) (195 ) 526 (917 ) 102 servicingrightsAdjustedrevenue $ 169,861 $ 175,139 $ 173,745 $ 170,906 $ 163,962 (non-GAAP) Totalnoninterest $ 115,386 $ 110,627 $ 103,376 $ 102,423 $ 99,269 expenses(GAAP)Less: Core depositand customerrelationship 2,169 2,295 2,415 2,516 2,501 intangiblesamortizationPartnershipinvestment in 2,549 2,374 1,345 35 1,899 tax creditprojects(Gain) loss onsales/ 214 (3 ) 183 194 2,621 valuation ofassets, netAcquisition,integrationand 1,989 204 210 2,928 2,186 restructuringcostsAdjustednoninterest $ 108,465 $ 105,757 $ 99,223 $ 96,750 $ 90,062 expenses(non-GAAP)Efficiencyratio, fully 63.86 % 60.38 % 57.11 % 56.61 % 54.93 %tax-equivalent(non-GAAP) Acquisition,integrationand restructuringcostsSalaries andemployee $ ? $ ? $ 44 $ 534 $ 232 benefitsOccupancy ? ? 1 9 ? Furniture and ? 7 41 607 423 equipmentProfessional 1,989 145 63 670 1,422 feesAdvertising ? 11 6 156 42 (Gain) loss onsales/ ? 39 ? ? ? valuations ofassets, netOthernoninterest ? 2 55 952 67 expensesTotalacquisition,integration $ 1,989 $ 204 $ 210 $ 2,928 $ 2,186 andrestructuringcostsAfter taximpact ondiluted $ 0.05 $ ? $ ? $ 0.05 $ 0.04 earnings pershare^(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 Year Ended December 31, December 31, 2021 2020 2021 2020 Reconciliationof AnnualizedReturn onAverage TangibleCommon Equity(non-GAAP)Net incomeavailable tocommon $ 47,568 $ 37,795 $ 211,873 $ 133,487 stockholders(GAAP)Plus coredeposit andcustomerrelationship 1,713 1,975 7,422 8,429 intangiblesamortization,net of tax^(1)Net incomeavailable tocommonstockholders $ 49,281 $ 39,770 $ 219,295 $ 141,916 excludingintangibleamortization(non-GAAP) Average common $ 2,061,973 $ 1,769,575 $ 2,020,200 $ 1,656,708 equity (GAAP)Less average 576,005 488,151 576,005 456,854 goodwillLess averagecore depositand customer 34,018 42,733 37,554 44,298 relationshipintangibles,netAveragetangible $ 1,451,950 $ 1,238,691 $ 1,406,641 $ 1,155,556 common equity(non-GAAP)Annualizedreturn on 9.15 % 8.50 % 10.49 % 8.06 %average commonequity (GAAP)Annualizedreturn onaverage 13.47 % 12.77 % 15.59 % 12.28 %tangiblecommon equity(non-GAAP) Reconciliationof AnnualizedNet Interest Margin, FullyTax-Equivalent(non-GAAP)Net Interest $ 137,194 $ 132,575 $ 560,560 $ 491,729 Income (GAAP)Plustax-equivalent 1,975 1,529 7,212 5,466 adjustment^(1)Net interestincome, fully $ 139,169 $ 134,104 $ 567,772 $ 497,195 tax-equivalent(non-GAAP) Average $ 17,681,917 $ 15,042,079 $ 17,025,088 $ 13,481,613 earning assets Annualized netinterest 3.08 % 3.51 % 3.29 % 3.65 %margin (GAAP)Annualized netinterestmargin, fully 3.12 3.55 3.33 3.69 tax-equivalent(non-GAAP)Net purchaseaccountingdiscountamortizationon loans 0.05 0.10 0.09 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 DATA For the Quarter Ended For the Year Ended December 31, December 31,Reconciliation ofEfficiency Ratio 2021 2020 2021 2020 (non-GAAP)Net interest income $ 137,194 $ 132,575 $ 560,560 $ 491,729 (GAAP)Tax-equivalent 1,975 1,529 7,212 5,466 adjustment^(1)Fully tax-equivalent 139,169 134,104 567,772 497,195 net interest incomeNoninterest income 32,730 32,621 128,935 120,291 Securities gains, net (1,563 ) (2,829 ) (5,910 ) (7,793 )Unrealized (gain) losson equity securities, 27 (36 ) (58 ) (640 )netValuation adjustment on (502 ) 102 (1,088 ) 1,778 servicing rightsAdjusted income $ 169,861 $ 163,962 $ 689,651 $ 610,831 (non-GAAP) Total noninterest $ 115,386 $ 99,269 $ 431,812 $ 370,963 expenses (GAAP)Less: Core deposit andcustomer relationship 2,169 2,501 9,395 10,670 intangiblesamortizationPartnership investment 2,549 1,899 6,303 3,801 in tax credit projects(Gain) loss on sales/valuations of assets, 214 2,621 588 5,101 netAcquisition,integration and 1,989 2,186 5,331 5,381 restructuring costsAdjusted noninterest $ 108,465 $ 90,062 $ 410,195 $ 346,010 expenses (non-GAAP)Efficiency ratio, fullytax-equivalent 63.86 % 54.93 % 59.48 % 56.65 %(non-GAAP) Acquisition,integration and restructuring costsSalaries and employee $ ? $ 232 $ 578 $ 398 benefitsOccupancy ? ? 10 ? Furniture and equipment ? 423 655 958 Professional fees 1,989 1,422 2,867 3,399 Advertising ? 42 173 143 (Gain)/loss on sales/valuations of assets, ? ? 39 ? netOther noninterest ? 67 1,009 483 expensesTotal acquisition,integration and $ 1,989 $ 2,186 $ 5,331 $ 5,381 restructuring costsAfter tax impact ondiluted earnings per $ 0.05 $ 0.04 $ 0.13 $ 0.11 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 As of and For the Quarter Ended 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020PPP I loan $ 27,092 $ 74,255 $ 374,174 $ 739,562 $ 957,785 balancesAverage PPP I 53,321 174,930 597,703 841,262 1,064,863 loans balances PPP I fee $ 497 $ 3,886 $ 7,313 $ 7,464 $ 9,109 incomePPP I interest 129 403 1,445 2,087 2,697 incomeTotal PPP Iinterest $ 626 $ 4,289 $ 8,758 $ 9,551 $ 11,806 income PPP II loan $ 172,791 $ 334,992 $ 455,001 $ 415,766 $ ? balancesAverage PPP II 249,508 427,745 449,856 151,255 ? loan balances PPP II fee $ 6,838 $ 5,784 $ 1,263 $ 223 $ ? incomePPP IIinterest 642 1,113 1,165 375 ? incomeTotal PPP IIinterest $ 7,480 $ 6,897 $ 2,428 $ 598 $ ? income Selectedratiosexcludingtotal PPP loans andtotal PPPinterestincomeAnnualized netinterest 2.95 % 3.15 % 3.31 % 3.39 % 3.44 %margin (GAAP)Annualized netinterestmargin, fully 2.99 3.20 3.35 3.44 3.48 tax-equivalent(non-GAAP)^(1)Ratio ofnonperforming 0.72 0.88 0.93 1.03 0.97 loans to totalloansRatio ofnonperformingloans andperforming 0.73 0.90 0.95 1.06 1.00 trouble debtrestructuredloans to totalloansRatio ofnonperforming 0.38 0.47 0.52 0.58 0.56 assets tototal assetsAnnualizedratio of netloancharge-offs 0.03 (0.05 ) 0.13 0.07 0.01 (recoveries)to averageloansAllowance forloan creditlosses as a 1.13 1.24 1.31 1.46 1.45 percent ofloansAllowance forlendingrelated credit 1.29 1.39 1.47 1.63 1.62 losses as apercent ofloansLoansdelinquent30-89 days as 0.08 0.12 0.18 0.18 0.25 a percent oftotal loansAfter taximpact of PPPinterestincome on $ 0.15 $ 0.21 $ 0.21 $ 0.19 $ 0.24 dilutedearnings pershare^(1)

As of and For the Year Ended December December 31, 2021 31, 2020Average PPP I loan balances $ 413,983 $ 779,183 Average PPP II loan balances 320,156 ? PPP I and II fee income $ 33,268 $ 17,306 PPP I and II interest income 7,359 7,979 Total PPP interest income $ 40,627 $ 25,285 Selected ratios excluding total PPP loans and total PPP interest incomeAnnualized net interest margin (GAAP) 3.19 % 3.67 %Annualized net interest margin, fully tax-equivalent 3.24 3.72 (non-GAAP)^(1)Annualized ratio of net loan charge-offs (recoveries) 0.04 0.35 to average loansAfter tax impact of PPP interest income on diluted $ 0.76 $ 0.53 earnings per share^(1) (1) Computed on a tax-equivalent basis using an effective tax rate of 21%.

CONTACT:Bryan R. McKeagExecutive Vice President Chief Financial Officer (563) 589-1994 bmckeag@htlf.com