Heartland Financial USA(US:HTLF) Newsfilter·2024-07-30 20:05Core Insights - Heartland Financial USA, Inc. (HTLF) reported a net income of $37.7 million for Q2 2024, a decrease of 20% from $47.4 million in Q2 2023 [2][11] - Adjusted earnings available to common stockholders increased to $49.6 million or $1.15 per diluted common share, compared to $46.5 million or $1.09 per diluted common share in the previous year [2][10] - The company completed the sale of Rocky Mountain Bank branches, which included loans of $343.8 million and deposits of $531.8 million, with an expected gain of $30 million to be realized in Q3 2024 [2][11] Financial Performance - Net interest income rose to $158.7 million, an increase of 8% from $147.1 million in Q2 2023 [2][13] - The net interest margin increased to 3.68% for Q2 2024, up from 3.19% in Q2 2023 [6][39] - Total interest income was $255.6 million, reflecting a 9% increase from $235.5 million in the same quarter last year [6][13] Asset and Deposit Changes - Total assets decreased by 3% to $18.81 billion as of June 30, 2024, from $19.41 billion at year-end 2023 [21] - Total customer deposits were $14.13 billion, a decrease of less than 1% from $14.27 billion at March 31, 2024 [15][17] - Average earning assets decreased by 6% to $17.33 billion, primarily due to the sale of securities [6][13] Cost and Efficiency Metrics - The adjusted efficiency ratio improved to 57.73% from 59.88% in Q2 2023 [9][10] - Noninterest expense increased by 6% to $116.2 million compared to $109.4 million in Q2 2023 [18][19] - Acquisition, integration, and restructuring costs totaled $6.0 million, up from $1.9 million in the previous year [19] Credit Quality and Allowance for Losses - Provision for credit losses for loans was $9.7 million, an increase from $7.8 million in Q2 2023 [29][30] - Nonperforming assets were $111.3 million, representing 0.59% of total assets, compared to 0.57% at year-end 2023 [36][31] - The allowance for credit losses for loans totaled $126.9 million as of June 30, 2024 [29][30]