A large securities gain boosted second quarter earnings at Heartland Financial USA Inc. in Dubuque, Iowa, by 137% from a year earlier, to $8.9 million.
The $4 billion-asset company late Monday reported earnings of 54 cents a share, far exceeding the average analysts' estimate by 21 cents, according to Thomson Reuters.
Heartland said that a $4.8 million securities gain came from taking advantage of volatility in the bond market as it sold taxable municipal bonds and reinvested the funds in tax-exempt bonds without extending the portfolio's duration. The company also shifted part of its portfolio to Treasury bonds from agency to reduce the probable effects of a flattening yield curve.
The results were also aided by a 61% decrease in the company's provision for loan losses, which totaled $3.8 million for the quarter.
