Heartland Financial USA in Dubuque, Iowa, posted higher second-quarter earnings after growing loans organically and through acquisitions.
The $5.9 billion-asset company reported that profit increased almost 13%, to $10.6 million, from a year earlier. Earnings per share increased more than 3%, to 56 cents.
Total earning assets increased roughly 19% as net loans and leases rose 27%, to $3.6 billion. This was driven by a 29% jump in commercial and commercial real estate loans while residential mortgage loans increased by nearly 28%.
The allowance for loan and lease losses was also increased almost 6%, to roughly $40 million.
Second-quarter profit was helped by the acquisition of the $751 million-asset Morrill & Janes Bank and Trust, which Heartland purchased in the fourth quarter, the company said in a press release Monday. Heartland's noninterest expense rose 14%, to $53.9 million, largely due to a $5.2 million in costs tied to the Morrill deal.
Heartland also bought the $67 million-asset Freed Bank in Sterling, Ill., last year. Following the acquisition of Morrill, Heartland has 79 branches in 10 states.
Net interest income was up roughly 31%, to $50.8 million. Noninterest income totaled $20.7 million, down almost 11% from a year earlier, as the company posted lower gains on sale of loans held for sale.