Heartland Financial (HTLF) in Dubuque, Iowa, missed Wall Street's quarterly earnings estimates after its loan-loss provision rose and revenue from loan sales fell.

The $4.9 billion-asset company earned $6.5 million in the third quarter, down 48% from the same period of 2012, and earnings per share of 38 cents were 12 cents shy of the average forecast of analysts polled by Bloomberg.

Heartland's stock price fell more than 6% following the announcement, to $26.63 around midday Tuesday.

The lower earnings were primarily the result of an $8.5 million decrease in loan-sale gains and a $4.1 million decrease in securities gains. Heartland's provision for loan losses rose to $5.1 million, after the company reported a $502,000 recovery in the previous period. Net chargeoffs rose by just under $1 million, to $1.5 million.

Heartland's net interest income rose by 8%, to $39.9 million, despite a decrease in net interest margin of 3 basis points, to 3.81%. Its loan book grew by 8%, to $2.9 billion.

Heartland's revenue from service charges and fees increased by 14%, to $4.5 million, and its revenue from loan servicing grew by 32%, to $4 million. However, its total noninterest income fell 31%, due to the decrease in loan-sale income.

Noninterest expense was steady, at $47.1 million.

This month, Heartland closed its $61.5 million acquisition of Morrill Bancshares in Kansas. In August, it began a $75 million capital raise.

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