Despite gains in loans, deposits, and fee income, Heartland Financial USA Inc. reported a 9.3% drop in fourth-quarter earnings from a year earlier, to $6.8 million, because of an increase in its provision for loan losses.
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For the full year, net income from continued operations fell 1.2%, to $24 million, the $3.2 billion-asset Heartland said Monday.
Nonperforming loans rose 287%, to $31.8 million at yearend. Heartland said nonperformers at two of its banks — Wisconsin Community Bank in Madison and Arizona Bank and Trust in Chandler — accounted for more than half the increase.
The company boosted loan-loss provision to $3.3 million in the fourth quarter. It had no provision for loan losses a year earlier.
