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."

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