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Heartland Financial USA (HTLF), a multibank holding company in Dubuque, Iowa, has swapped executives with one of its subsidiaries through a pair of promotions.
January 11 -
As Heartland Financial grew larger, it needed a better way to produce detailed reports on its commercial loan portfolio and to measure risk.
December 1
Heartland Financial USA (HTLF) in Dubuque, Iowa, reported lower quarterly earnings as compensation expenses rose.
The $4.9 billion-asset company said Monday that it earned $12.6 million in the first quarter of 2012, 2% lower than in the first quarter of 2012. Yet per-share earnings of 70 cents beat Bloomberg analysts’ expectations by 13 cents.
Noninterest expense surged 16%, to $46.7 million, driven by a $5.7 million rise in salary and benefit costs, to $29.7 million. The higher costs were the result of an expansion of Heartland’s mortgage-origination operations, which helped raise its headcount by nearly 300, to 1,532.
Heartland also added to its staff through acquisitions. Last year, the company
Net interest income rose 1%, to $38.7 million, as both interest expense and income fell. Average interest-earning assets increased 11%, to $3.4 billion, but net interest margin decreased by 36 basis points, to 3.77%.
Noninterest income rose 13%, to $26.5 million, on higher income from service charges and fees and gains from loan sales.
Heartland’s asset quality improved, as nonperforming assets fell 23%, to $71.2 million, and provision for loan losses dropped to $637,000, from $2.4 million. Net chargeoffs were $1.8 million, compared with a net recovery of $200,000 in the first quarter of 2012.
