Heartland Loss 200% Higher

Heartland Financial USA Inc. of Dubuque, Iowa, reported a net 2009 loss of $9.2 million for common shareholders, 200% larger than the 2008 loss.

The $4 billion-asset company said the loss resulted largely from a $12.7 million noncash, goodwill impairment charge related to its acquisitions of Arizona Bank and Trust in Phoenix and Rocky Mountain Bank in Billings, Mont.

Heartland's nonperforming assets excluded from loss-share agreements were 2.71% of total assets, or $108.8 million, a 31-basis-point year-over-year improvement. The company has $4.5 million of nonperforming assets covered under a loss-share agreement with the Federal Deposit Insurance Corp. related to its third-quarter acquisition of the failed Elizabeth State Bank in Illinois.

The loan-loss provision in the fourth quarter was $10.8 million, a 28% year-over-year improvement.

Lynn B. Fuller, Heartland's chairman, president and chief executive, said in a press release Monday: "Given the reality that credit quality is generally a reflection of the economies in the communities we serve, we are optimistic that the drop in nonperforming loans may signal an improving trend."

For reprint and licensing requests for this article, click here.
Community banking Iowa
MORE FROM AMERICAN BANKER