HEARTLAND FINANCIAL USA INC Form 8-K Current Report Filed 2023-04-24

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Pursuant to Section 13 of 15(d) of The Securities Exchange Act of 1934


Date of Report (Date of earliest event reported)			April 24, 2023

Heartland Financial USA, Inc.


Commission File Number:			001-15393

(Exact name of Registrant as specified in its charter)


Delaware						42-1405748
(State or other jurisdiction of incorporation)						(I.R.S. Employer Identification Number)


1800 Larimer Street
Suite 1800
Denver,	Colorado	80202

(Address of principal executive offices, including zip code)

(Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Exchange Act:


Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $1.00 per share	HTLF	Nasdaq Stock Market
Depositary Shares (each representing 1/400th interest in a share of 7.00% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series E)	HTLFP	Nasdaq Stock Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On April 24, 2023, Heartland Financial USA, Inc. ("HTLF") issued a press release announcing its earnings for the quarter ended March 31, 2023. A copy of the press release is attached as Exhibit 99.1 and is incorporated by reference in this Item 2.02. The information furnished in Item 2.02 and in Exhibit 99.1 shall not be deemed filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

Item 7.01 Regulation FD Disclosure.

For the benefit of its investors, HTLF is also furnishing an Investor Presentation attached as Exhibit 99.2 and incorporated herein by reference in this Item 7.01. The information furnished in this Item 7.01 and Exhibit 99.2 shall not be deemed filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

Item 9.01 Financial Statements and Exhibits.

104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


Date: April 24, 2023	HEARTLAND FINANCIAL USA, INC.

	By:	/s/ Bryan R. McKeag
		Bryan R. McKeag
		Executive Vice President
		Chief Financial Officer


CONTACT:			FOR IMMEDIATE RELEASE
Bryan R. McKeag			April 24, 2023
Executive Vice President
Chief Financial Officer
(563) 589-1994
BMcKeag@htlf.com

HEARTLAND FINANCIAL USA, INC. ("HTLF") REPORTS QUARTERLY RESULTS AS OF MARCH 31, 2023

Highlights and Developments


§			Quarterly net income available to common stockholders of $50.8 million
§			Diluted earnings per common share of $1.19
§			Efficiency ratio, fully tax-equivalent (non-GAAP)(1) of 57.16%
§			Quarterly net recoveries of $1.0 million and 30-89 day loan delinquencies were 0.10% of total loans
§			Total deposits increased $168.3 million or 1%
§			Total customer deposits decreased $618.2 million or 4%
§			Uninsured deposits, excluding collateralized public deposits, were 35% of total deposits as of March 31, 2023
§			Increased borrowing capacity by $1.7 billion during the quarter to $2.8 billion
§			Common equity tier 1 ratio to risk-weighted assets of 11.28%, which is substantially above the well-capitalized regulatory requirement of 6.50%
§			Completed the consolidation of one bank charter during the quarter, and one charter consolidation completed subsequent to the end of the quarter


	Three Months Ended March 31,
		2023			2022
Net income available to common stockholders (in millions)		$	50.8		$	41.1
Diluted earnings per common share		1.19			0.97

Return on average assets		1.06		%	0.91		%

Return on average common equity		12.43			8.32
Return on average tangible common equity (non-GAAP)(1)		20.05			12.41
Net interest margin		3.36			3.08
Net interest margin, fully tax-equivalent (non-GAAP)(1)		3.40			3.12
Efficiency ratio		60.94			65.46
Efficiency ratio, fully-tax equivalent (non-GAAP)(1)		57.16			64.65

(1) Refer to "Non-GAAP Measures" in this earnings release for additional information on the usage and presentation of these non-GAAP measures, and refer to the financial tables for reconciliations to the most directly comparable GAAP measures.


"HTLF's strength and stability helped us navigate the first quarter of 2023. Despite some challenging headwinds, we maintained solid regulatory capital ratios, enhanced our strong liquidity position and delivered excellent credit metrics while continuing to execute our growth strategies. "
Bruce K. Lee, President and Chief Executive Officer, HTLF

Denver, Monday, April 24, 2023-Heartland Financial USA, Inc. (NASDAQ: HTLF) today reported the following results for the quarter ended March 31, 2023 compared to the quarter ended March 31, 2022:

•Net income available to common stockholders of $50.8 million compared to $41.1 million, an increase of $9.7 million or 24%.

•Earnings per diluted common share of $1.19 compared to $0.97, an increase of $0.22 or 23%.

•Net interest income of $152.2 million compared to $134.7 million, an increase of $17.5 million or 13%.

•Return on average assets was 1.06% compared to 0.91%.

•Return on average common equity was 12.43% compared to 8.32%.

•Return on average tangible common equity (non-GAAP) was 20.05% compared to 12.41%.

"HTLF's strength and stability helped us navigate the first quarter of 2023. Despite some challenging headwinds, we maintained solid regulatory capital ratios, enhanced our strong liquidity position and delivered excellent credit metrics while continuing to execute our growth strategies," said Bruce K. Lee, president and chief executive officer of HTLF.

Strengthening HTLF in Response to Recent Banking Industry Disruptions

In the first quarter of 2023, HTLF took the following actions, primarily in response to the disruption in the banking industry in March 2023:

•Proactively reached out to over 1,000 large depositors and helped facilitate additional FDIC insurance through Insured Cash Sweep ("ICS") products and Certificate of Deposit Registry Service ("CDARS") products,

•Increased deposit pricing to address highly competitive deposit environment,

•Increased access and availability to sources of liquidity by $1.7 billion,

•Total borrowing capacity through various programs, including the Bank Term Funding Program, was $2.8 billion as of March 31, 2023, of which no balance was drawn, and

•Retail deposit campaign resulted in over 8,000 new accounts opened.

Mr. Lee commented, "Conservative liquidity and capital management are fundamental to our strength and stability. During the quarter, we enhanced our liquidity and built our regulatory capital ratios which substantially exceed the well-capitalized thresholds. We believe our regulatory capital ratio buffers would withstand any changes in regulatory rules that require the inclusion of unrealized losses in our total investment portfolio and remain well capitalized."

Charter Consolidation Update

During the first quarter of 2023, Wisconsin Bank & Trust was consolidated into HTLF Bank. Subsequent to March 31, 2023, Bank of Blue Valley was consolidated into HTLF Bank. Citywide Banks, Premier Valley Bank, Minnesota Bank & Trust, Arizona Bank & Trust, Illinois Bank & Trust, Wisconsin Bank & Trust and Bank of Blue Valley are now operating as divisions of HTLF Bank. The remaining four charters are expected to be consolidated by the end of 2023. Charter consolidation follows a template that retains the current brands, local leadership and local decision making.

Total consolidation restructuring costs are projected to be $19-$20 million with approximately $8-$9 million of expenses remaining to be incurred in 2023. Charter consolidation is designed to eliminate redundancies and improve HTLF’s operating efficiency and capacity to support ongoing product and service enhancements, as well as current and future growth. HTLF realized some operating efficiency and financial benefits in the second half of 2022 and first quarter of 2023 with the completion of six charter consolidations, and total benefits are estimated to be approximately $20 million annually after the project is completed.

As of March 29, 2023, HTLF's subsidiary, Dubuque Bank & Trust, entered into an agreement to sell and transfer the recordkeeping and administration services component of HTLF’s Retirement Plan Services business to July Business Services ("July"). Through the new partnership with July, HTLF will augment the comprehensive retirement plan solutions offered to clients with enhanced technology and an expanded suite of product offerings

that clients expect from a top retirement services provider. The transaction is expected to be completed and recordkeeping and administration services transferred in the second quarter of 2023.

On March 31, 2023, HTLF's subsidiary, First Bank & Trust, closed on the sale of its mortgage servicing rights portfolio, which consisted of approximately 4,500 loans serviced for others with an unpaid principal balance of approximately $700 million. In the agreement, which includes customary terms and conditions, First Bank & Trust is providing interim servicing of the loans until the expected transfer date in May 2023.

Net Interest Income and Net Interest Margin

Net interest margin, expressed as a percentage of average earning assets, was 3.36% (3.40% on a fully tax-equivalent basis, non-GAAP) for the first quarter of 2023 compared to 3.61% (3.65% on a fully tax-equivalent basis, non-GAAP) for the fourth quarter of 2022, and 3.08% (3.12% on a fully tax-equivalent basis, non-GAAP) for the first quarter of 2022.

Total interest income and average earning asset changes for the first quarter of 2023 compared to the first quarter of 2022 were:

•Total interest income was $217.0 million compared to $141.3 million, which was an increase of $75.7 million or 54% and primarily attributable to an increase in average earning assets and higher yields.

•Total interest income on a tax-equivalent basis (non-GAAP) was $219.2 million, which was an increase of $75.8 million or 53% from $143.4 million.

•Average earning assets increased $635.6 million or 4% to $18.39 billion compared to $17.76 billion.

•The average rate on earning assets increased 156 basis points to 4.83% compared to 3.27%, which was primarily due to recent interest rate increases.

Total interest expense and average interest bearing liability changes for the first quarter of 2023 compared to the first quarter of 2022 were:

•Total interest expense was $64.8 million, an increase of $58.2 million from $6.6 million, which was attributable to an increase in the average interest rate paid and an increase in average interest bearing liabilities.

•The average interest rate paid on interest bearing liabilities increased 183 basis points to 2.09% compared to 0.26%.

•Average interest bearing deposits increased $2.03 billion or 20% to $11.99 billion from $9.96 billion, primarily attributable to an increase of $1.04 billion in wholesale deposits.

•The average interest rate paid on interest bearing deposits increased 180 basis points to 1.92% compared to 0.12%.

•Average borrowings increased $102.9 million or 21% to $594.7 million from $491.8 million, and the average interest rate paid on borrowings was 5.37% compared to 2.97%.

Net interest income changes for the first quarter of 2023 compared to the first quarter of 2022 were:

•Net interest income totaled $152.2 million compared to $134.7 million, which was an increase of $17.5 million or 13%.

•Net interest income on a tax-equivalent basis (non-GAAP) totaled $154.4 million compared to $136.8 million, which was an increase of $17.6 million or 13%.

Noninterest Income and Noninterest Expense

Total noninterest income was $30.0 million during the first quarter of 2023 compared to $34.6 million during the first quarter of 2022, a decrease of $4.6 million or 13%. Significant changes within the noninterest income category for the first quarter of 2023 compared to the first quarter of 2022 were:

•Service charges and fees increased $1.9 million or 12% to $17.1 million from $15.3 million, which was primarily attributable to an increase of $1.3 million or 26% in credit card revenue to $6.3 million compared to $5.0 million.

•Net security losses totaled $1.1 million compared to net gains of $2.9 million.

•Net gains on sales of loans held for sale totaled $1.8 million compared to $3.4 million, which was a decrease of $1.6 million or 46% and was primarily attributable to a decrease of loans sold to the secondary market.

•Valuation adjustment benefit on servicing rights was $0 compared to $1.7 million.

Total noninterest expense was $111.0 million during the first quarter of 2023 compared to $110.8 million during the first quarter of 2022, which was an increase of $246,000 or less than 1%. Significant changes within the noninterest expense category for the first quarter of 2023 compared to the first quarter of 2022 were:

•Salaries and employee benefits totaled $62.1 million compared to $66.2 million, which was a decrease of $4.0 million or 6%. The decrease was primarily attributable to a reduction of full-time equivalent employees and lower incentive compensation expense. Full-time equivalent employees totaled 1,991 compared to 2,208, which was a decrease of 217 or 10%.

•Acquisition, integration and restructuring costs totaled $1.7 million compared to $576,000, an increase of $1.1 million due to the progression of the charter consolidation project.

•Professional fees totaled $16.1 million compared to $15.2 million, which was an increase of $920,000 or 6%. FDIC insurance assessments totaled $3.3 million compared to $1.6 million, an increase of $1.7 million due to assessment rate changes that were effective with the first quarter 2023 assessment.

•Loss on sales/valuations of assets, net totaled $1.1 million compared to $46,000, which was an increase of $1.1 million. HTLF recorded $813,000 of losses on fixed assets associated with branch optimization activities and a loss of $193,000 associated with the sale of the mortgage servicing rights portfolio.

The effective tax rate was 22.50% for the first quarter of 2023 compared to 21.95% for the first quarter of 2022. The following items impacted the first quarter 2023 and 2022 tax calculations:

•Various tax credits of $969,000 compared to $273,000.

•Tax expense of $929,000 compared to $58,000 resulting from the disallowed interest expense related to tax-exempt loans and securities, aligning with increases in total interest expense.

•Tax-exempt interest income as a percentage of pre-tax income of 12.20% compared to 14.44%.

Total Assets, Total Loans and Total Deposits

Total assets were $20.18 billion at March 31, 2023, a decrease of $61.7 million or less than 1% from $20.24 billion at year-end 2022. Securities represented 35% of total assets at both March 31, 2023 and December 31, 2022.

Total loans held to maturity were $11.50 billion at March 31, 2023, compared to $11.43 billion at December 31, 2022, which was an increase of $67.0 million or 1%.

Significant changes by loan category at March 31, 2023 compared to December 31, 2022 included:

•Commercial and business lending, which includes commercial and industrial, PPP and owner occupied commercial real estate loans, increased $78.4 million or 1% to $5.82 billion compared to $5.74 billion.

•Commercial real estate lending, which includes non-owner occupied commercial real estate and construction loans, increased $116.5 million or 3% to $3.52 billion compared to $3.41 billion.

•Agricultural and agricultural real estate loans decreased $110.3 million or 12% to $810.2 million compared to $920.5 million.

Total deposits were $17.68 billion as of March 31, 2023, compared to $17.51 billion at December 31, 2022, which was an increase of $168.3 million or 1%. Total customer deposits were $14.84 billion as of March 31, 2023 compared to $15.46 billion at December 31, 2022, which was a decrease of $618.2 million or 4%. Total wholesale deposits were $2.84 billion, which was an increase of $786.5 million or 38% from $2.06 billion at December 31, 2022.

Significant deposit changes by category at March 31, 2023 compared to December 31, 2022 included:

•Customer demand deposits decreased $581.8 million or 10% to $5.12 billion compared to $5.70 billion.

•Total savings deposits decreased $737.8 million or 7% to $9.26 billion from $9.99 billion. Total customer savings deposits decreased $256.4 million or 3% to $8.64 billion from $8.90 billion. Wholesale savings deposits decreased $481.4 million or 44% to $609.2 million from $1.09 billion.

•Total time deposits increased $1.49 billion or 82% to $3.31 billion from $1.82 billion. Customer time deposits increased $219.9 million or 26% to $1.07 billion from $851.5 million. Wholesale time deposits increased $1.27 billion to $2.23 billion from $965.7 million.

Provision and Allowance

Provision and Allowance for Credit Losses for Loans

Provision for credit losses for loans for the first quarter of 2023 was $2.2 million, which was a decrease of $444,000 or 17% from $2.6 million recorded in the first quarter of 2022. The provision expense for the first quarter of 2023 reflects net recoveries of $1.0 million and healthy current credit metrics. Management continued to utilize a macroeconomic outlook which anticipated a moderate recession developing within the next twelve months.

The allowance for credit losses for loans totaled $112.7 million and $109.5 million at March 31, 2023, and December 31, 2022, respectively. The following items impacted the allowance for credit losses for loans at March 31, 2023:

•Provision expense for the three months ended March 31, 2023, totaled $2.2 million.

•Net recoveries of $1.0 million were recorded for the first three months of 2023.

Provision and Allowance for Credit Losses for Unfunded Commitments

The allowance for unfunded commitments totaled $21.1 million at March 31, 2023, which was an increase of $890,000 from $20.2 million at December 31, 2022. Unfunded commitments increased $138.2 million to $4.87 billion at March 31, 2023 compared to $4.73 billion at December 31, 2022.

Total Provision and Allowance for Lending Related Credit Losses

The total provision expense for lending related credit losses was $3.1 million for the first quarter of 2023 compared to $3.2 million for the first quarter of 2022. The total allowance for lending related credit losses was $133.8 million or 1.16% of total loans at March 31, 2023, compared to $129.7 million or 1.13% of total loans as of December 31, 2022.

Nonperforming Assets

Nonperforming assets decreased $1.2 million or 2% to $65.7 million or 0.33% of total assets at March 31, 2023, compared to $66.9 million or 0.33% of total assets at December 31, 2022. Nonperforming loans were $58.2 million or 0.51% of total loans at March 31, 2023, compared to $58.5 million or 0.51% of total loans at December 31, 2022. At March 31, 2023, loans delinquent 30-89 days were 0.10% of total loans compared to 0.04% of total loans at December 31, 2022.

Non-GAAP Financial Measures

This earnings release contains references to financial measures which are not defined by generally accepted accounting principles ("GAAP"). Management believes the non-GAAP measures are helpful for investors to analyze and evaluate the company's financial condition and operating results. However, these non-GAAP measures have inherent limitations and should not be considered a substitute for operating results determined in accordance with GAAP. Because non-GAAP measures are not standardized, it may not be possible to compare the non-GAAP measures in this earnings release with other companies' non-GAAP measures. Reconciliations of each non-GAAP measure to the most directly comparable GAAP measure may be found in the financial tables in this earnings release.

Below are the non-GAAP measures included in this earnings release, management's reason for including each measure and the method of calculating each measure:

•Annualized net interest margin, fully tax-equivalent, adjusts net interest income for the tax-favored status of certain loans and securities. Management believes this measure enhances the comparability of net interest income arising from taxable and tax-exempt sources.

•Efficiency ratio, fully tax equivalent, expresses noninterest expenses as a percentage of fully tax-equivalent net interest income and noninterest income. This efficiency ratio is presented on a tax-equivalent basis which adjusts net interest income and noninterest expenses for the tax favored status of certain loans, securities, and tax credit projects. Management believes the presentation of this non-GAAP measure provides supplemental useful information for proper understanding of the financial results as it enhances the comparability of income and expenses arising from taxable and nontaxable sources and excludes specific items as noted in reconciliation contained in this earnings release.

•Net interest income, fully tax equivalent, is net income adjusted for the tax-favored status of certain loans and securities. Management believes this measure enhances the comparability of net interest income arising from taxable and tax-exempt sources.

•Tangible book value per common share is total common equity less goodwill and core deposit and customer relationship intangibles, net, divided by common shares outstanding, net of treasury. This measure is included as it is considered to be a critical metric to analyze and evaluate use of equity, financial condition and capital strength.

•Tangible common equity ratio is total common equity less goodwill and core deposit and customer relationship intangibles, net, divided by total assets less goodwill and core deposit and customer relationship intangibles, net. This measure is included as it is considered to be a critical metric to analyze and evaluate financial condition and capital strength.

•Adjusted tangible common equity ratio is total common equity less goodwill, core deposit and customer relationship intangibles, net, and accumulated other comprehensive loss divided by total assets less goodwill and core deposit and customer relationship intangibles, net. This measure is included as it is considered to be a critical metric to analyze and evaluate financial condition and capital strength excluding the variability of accumulated other comprehensive income (loss).

•Annualized return on average tangible common equity is net income excluding intangible amortization calculated as (1) net income excluding tax-effected core deposit and customer relationship intangibles amortization, divided by (2) average common equity less goodwill and core deposit and customer relationship intangibles, net. This measure is included as it is considered to be a critical metric to analyze and evaluate use of equity, financial condition and capital strength.

•Annualized ratio of core expenses to average assets adjusts noninterest expenses to exclude specific items noted in the reconciliation. Management includes this measure as it is considered to be a critical metric to analyze and evaluate controllable expenses related to primary business operations.

Conference Call Details

HTLF will host a conference call for shareholders, analysts and other interested parties at 5:00 p.m. EDT today. To join via webcast, please visit https://ir.htlf.com/news-and-events/event-calendar/default.aspx 10 minutes prior to the call. A replay will be available until April 23, 2024, by logging on to www.htlf.com.

Heartland Financial USA, Inc., is a Denver, Colorado-based bank holding company operating under the brand name HTLF, with assets of $20.18 billion as of March 31, 2023. HTLF's banks serves communities in Arizona, California, Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Montana, New Mexico, Texas and Wisconsin. HTLF is committed to its core commercial business, supported by a strong retail operation, and provides a diversified line of financial services including treasury management, wealth management, investments and residential mortgage. Additional information is available at www.htlf.com.

Safe Harbor Statement

This release (including any information incorporated herein by reference) and future oral and written statements of HTLF and its management, may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the business, financial condition, results of operations, plans, objectives and future performance of HTLF.

Any statements about HTLF's expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. Forward-looking statements may include information about possible or assumed future results of HTLF's operations or performance, and may be based upon beliefs, expectations and assumptions of HTLF's management. These forward-looking statements are generally identified by the use of the words such as "believe", "expect", "anticipate", "plan", "intend", "estimate", "project", "may", "will", "would", "could", "should", "may", "view", "opportunity", "potential", or similar or negative expressions of these words or phrases that are used in this release, and future oral and written statements of HTLF and its management. Although HTLF may make these statements based on management’s experience, beliefs, expectations, assumptions and best estimate of future events, the ability of HTLF to predict results or the actual effect or outcomes of plans or strategies is inherently uncertain, and there may be events or factors that management has not anticipated. Therefore, the accuracy and achievement of such forward-looking statements and estimates are subject to a number of risks, many of which are beyond the ability of management to control or predict, that could cause actual results to differ materially from those in its forward-looking statements. These factors, which HTLF currently believes could have a material effect on its operations and future prospects, are detailed below and in the

risk factors in HTLF's reports filed with the Securities and Exchange Commission ("SEC"), including the "Risk Factors" section under Item 1A of Part I of HTLF’s Annual Report on Form 10-K for the year ended December 31, 2022, include, among others:

•Economic and Market Conditions Risks, including risks related to the deterioration of the U.S. economy in general and in the local economies in which HTLF conducts its operations and future civil unrest, natural disasters, pandemics, such as the COVID-19 pandemic or future pandemics and governmental measures addressing them, climate change and climate-related regulations, persistent inflation, higher interest rates, recession, supply chain issues, labor shortages, terrorist threats or acts of war;

•Credit Risks, including risks of increasing credit losses due to deterioration in the financial condition of HTLF's borrowers, changes in asset and collateral values and climate and other borrower industry risks which may impact the provision for credit losses and net charge-offs;

•Liquidity and Interest Rate Risks, including the impact of capital market conditions, rising interest rates and changes in monetary policy on our borrowings and net interest income;

•Operational Risks, including processing, information systems, cybersecurity, vendor, business interruption, and fraud risks;

•Strategic and External Risks, including economic, political and competitive forces impacting our business;

•Legal, Compliance and Reputational Risks, including regulatory and litigation risks; and

•Risks of Owning Stock in HTLF, including stock price volatility and dilution as a result of future equity offerings and acquisitions.

There can be no assurance that other factors not currently anticipated by HTLF will not materially and adversely affect HTLF's business, financial condition and results of operations. Additionally, all statements in this release, including forward-looking statements speak only as of the date they are made. HTLF does not undertake and specifically disclaims any obligation to publicly release the results of any revisions which may be made to any forward-looking statement to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events or to otherwise update any statement in light of new information or future events. Further information concerning HTLF and its business, including additional factors that could materially affect HTLF’s financial results, is included in HTLF's filings with the Securities and Exchange Commission (the "SEC").

-FINANCIAL TABLES FOLLOW-


HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
	For the Three Months Ended March 31,
		2023		2022
Interest Income
Interest and fees on loans		$	153,843	$	102,369
Interest on securities:
Taxable		55,976		32,620
Nontaxable		6,028		6,202
Interest on federal funds sold		—		—
Interest on deposits with other banks and short-term investments		1,131		71
Total Interest Income		216,978		141,262
Interest Expense
Interest on deposits		56,898		2,977
Interest on short-term borrowings		2,422		46
Interest on other borrowings		5,446		3,560
Total Interest Expense		64,766		6,583
Net Interest Income		152,212		134,679
Provision for credit losses		3,074		3,245
Net Interest Income After Provision for Credit Losses		149,138		131,434
Noninterest Income
Service charges and fees		17,136		15,251
Loan servicing income		714		286
Trust fees		5,657		6,079
Brokerage and insurance commissions		696		869
Capital markets fees		2,449		3,039
Securities gains/(losses), net		(1,104)		2,872
Unrealized gain/(loss) on equity securities, net		193		(283)

Net gains on sale of loans held for sale		1,831		3,411
Valuation adjustment on servicing rights		—		1,658
Income on bank owned life insurance		964		524
Other noninterest income		1,463		863
Total Noninterest Income		29,999		34,569
Noninterest Expense
Salaries and employee benefits		62,149		66,174
Occupancy		7,209		7,362
Furniture and equipment		2,915		3,519
Professional fees		16,076		15,156

Advertising		1,985		1,555
Core deposit and customer relationship intangibles amortization		1,788		2,054
Other real estate and loan collection expenses, net		155		195
(Gain)/loss on sales/valuations of assets, net		1,115		46
Acquisition, integration and restructuring costs		1,673		576
Partnership investment in tax credit projects		538		77
Other noninterest expenses		15,440		14,083
Total Noninterest Expense		111,043		110,797
Income Before Income Taxes		68,094		55,206
Income taxes		15,318		12,117
Net Income		52,776		43,089


Preferred dividends		(2,013)		(2,013)

Net Income Available to Common Stockholders		$	50,763	$	41,076
Earnings per common share-diluted		$	1.19	$	0.97
Weighted average shares outstanding-diluted		42,742,878		42,540,953


HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
	For the Quarter Ended
	3/31/2023		12/31/2022		9/30/2022		6/30/2022		3/31/2022
Interest Income
Interest and fees on loans	$	153,843	$	143,970	$	122,913	$	108,718	$	102,369
Interest on securities:
Taxable	55,976		53,178		45,648		38,098		32,620
Nontaxable	6,028		6,132		6,164		5,508		6,202
Interest on federal funds sold	—		11		—		—		—
Interest on deposits with other banks and short-term investments	1,131		1,410		1,081		563		71
Total Interest Income	216,978		204,701		175,806		152,887		141,262
Interest Expense
Interest on deposits	56,898		32,215		15,158		6,530		2,977
Interest on short-term borrowings	2,422		2,223		360		88		46
Interest on other borrowings	5,446		5,043		4,412		3,808		3,560
Total Interest Expense	64,766		39,481		19,930		10,426		6,583
Net Interest Income	152,212		165,220		155,876		142,461		134,679
Provision for credit losses	3,074		3,387		5,492		3,246		3,245
Net Interest Income After Provision for Credit Losses	149,138		161,833		150,384		139,215		131,434
Noninterest Income
Service charges and fees	17,136		17,432		17,282		18,066		15,251
Loan servicing income	714		790		831		834		286
Trust fees	5,657		5,440		5,372		5,679		6,079
Brokerage and insurance commissions	696		629		649		839		869
Capital markets fees	2,449		1,824		1,809		4,871		3,039
Securities gains/(losses), net	(1,104)		(153)		(1,055)		(2,089)		2,872
Unrealized gain/(loss) on equity securities, net	193		(7)		(211)		(121)		(283)

Net gains on sale of loans held for sale	1,831		888		1,832		2,901		3,411
Valuation adjustment on servicing rights	—		—		—		—		1,658
Income on bank owned life insurance	964		600		694		523		524
Other noninterest income	1,463		2,532		1,978		3,036		863
Total Noninterest Income	29,999		29,975		29,181		34,539		34,569
Noninterest Expense
Salaries and employee benefits	62,149		61,611		62,661		64,032		66,174
Occupancy	7,209		6,905		6,794		7,094		7,362
Furniture and equipment	2,915		3,019		2,928		3,033		3,519
Professional fees	16,076		18,186		16,277		15,987		15,156

Advertising	1,985		1,829		1,554		1,283		1,555
Core deposit and customer relationship intangibles amortization	1,788		1,841		1,856		2,083		2,054
Other real estate and loan collection expenses, net	155		373		304		78		195
(Gain)/loss on sales/valuations of assets, net	1,115		2,388		(251)		(3,230)		46
Acquisition, integration and restructuring costs	1,673		2,442		2,156		2,412		576
Partnership investment in tax credit projects	538		3,247		979		737		77
Other noninterest expenses	15,440		15,377		13,625		12,970		14,083
Total Noninterest Expense	111,043		117,218		108,883		106,479		110,797
Income Before Income Taxes	68,094		74,590		70,682		67,275		55,206
Income taxes	15,318		13,936		14,118		15,402		12,117
Net Income	52,776		60,654		56,564		51,873		43,089


Preferred dividends	(2,013)		(2,012)		(2,013)		(2,012)		(2,013)

Net Income Available to Common Stockholders	$	50,763	$	58,642	$	54,551	$	49,861	$	41,076
Earnings per common share-diluted	$	1.19	$	1.37	$	1.28	$	1.17	$	0.97
Weighted average shares outstanding-diluted	42,742,878		42,699,752		42,643,940		42,565,391		42,540,953


HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
	As of
	3/31/2023		12/31/2022		9/30/2022		6/30/2022		3/31/2022
Assets
Cash and due from banks	$	274,354	$	309,045	$	250,394	$	221,077	$	198,559
Interest bearing deposits with other banks and short-term investments	87,757		54,042		149,466		163,717		406,343
Cash and cash equivalents	362,111		363,087		399,860		384,794		604,902
Time deposits in other financial institutions	1,740		1,740		1,740		1,855		2,894
Securities:

Carried at fair value	6,096,657		6,147,144		6,060,331		7,106,218		7,025,243
Held to maturity, at cost, less allowance for credit losses	832,098		829,403		830,247		81,939		81,785
Other investments, at cost	72,364		74,567		80,286		85,899		82,751
Loans held for sale	10,425		5,277		9,570		18,803		22,685
Loans:
Held to maturity	11,495,353		11,428,352		10,923,532		10,678,218		10,177,385

Allowance for credit losses	(112,707)		(109,483)		(105,715)		(101,353)		(100,522)
Loans, net	11,382,646		11,318,869		10,817,817		10,576,865		10,076,863
Premises, furniture and equipment, net	191,267		197,330		203,585		206,818		213,752
Goodwill	576,005		576,005		576,005		576,005		576,005
Core deposit and customer relationship intangibles, net	23,366		25,154		26,995		28,851		30,934
Servicing rights, net	—		7,840		8,379		8,288		8,102
Cash surrender value on life insurance	194,419		193,403		193,184		192,474		192,267
Other real estate, net	7,438		8,401		8,030		4,528		1,422

Other assets	432,008		496,008		466,921		385,062		311,274
Total Assets	$	20,182,544	$	20,244,228	$	19,682,950	$	19,658,399	$	19,230,879
Liabilities and Equity
Liabilities
Deposits:
Demand	$	5,119,554	$	5,701,340	$	6,083,563	$	6,087,304	$	6,376,249
Savings	9,256,609		9,994,391		10,060,523		10,059,678		9,236,427
Time	3,305,183		1,817,278		1,123,035		1,078,568		1,054,008
Total deposits	17,681,346		17,513,009		17,267,121		17,225,550		16,666,684

Short-term borrowings	92,337		376,117		147,000		97,749		107,372
Other borrowings	372,097		371,753		371,446		372,538		372,290
Accrued expenses and other liabilities	207,359		248,294		241,425		188,494		152,676
Total Liabilities	18,353,139		18,509,173		18,026,992		17,884,331		17,299,022
Stockholders' Equity
Preferred equity	110,705		110,705		110,705		110,705		110,705
Common stock	42,559		42,467		42,444		42,439		42,370
Capital surplus	1,084,112		1,080,964		1,079,277		1,076,766		1,073,048
Retained earnings	1,158,948		1,120,925		1,074,168		1,031,076		992,655
Accumulated other comprehensive loss	(566,919)		(620,006)		(650,636)		(486,918)		(286,921)

Total Equity	1,829,405		1,735,055		1,655,958		1,774,068		1,931,857


Total Liabilities and Equity	$	20,182,544	$	20,244,228	$	19,682,950	$	19,658,399	$	19,230,879


HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA AND FULL TIME EQUIVALENT EMPLOYEE DATA
	For the Quarter Ended
	3/31/2023			12/31/2022			9/30/2022			6/30/2022			3/31/2022
Average Balances
Assets	$	20,118,005		$	19,913,849		$	19,775,341		$	19,559,091		$	19,229,872
Loans, net of unearned	11,378,078			11,117,513			10,783,135			10,477,368			10,043,594
Deposits	17,505,867			17,319,218			17,282,289			17,044,479			16,459,378
Earning assets	18,392,649			18,175,838			18,157,795			17,987,734			17,757,067
Interest bearing liabilities	12,582,234			11,980,032			11,723,026			11,575,319			10,453,400
Common equity	1,655,860			1,548,739			1,674,306			1,731,393			2,003,424
Total stockholders' equity	1,766,565			1,659,444			1,785,011			1,842,098			2,114,129
Tangible common equity (non-GAAP)(1)	1,055,617			946,688			1,070,399			1,125,543			1,395,488

Key Performance Ratios
Annualized return on average assets	1.06		%	1.21		%	1.13		%	1.06		%	0.91		%

Annualized return on average common equity (GAAP)	12.43			15.02			12.93			11.55			8.32
Annualized return on average tangible common equity (non-GAAP)(1)	20.05			25.19			20.76			18.35			12.41

Annualized ratio of net charge-offs/(recoveries) to average loans	(0.04)			(0.06)			0.00			0.03			0.49
Annualized net interest margin (GAAP)	3.36			3.61			3.41			3.18			3.08
Annualized net interest margin, fully tax-equivalent (non-GAAP)(1)	3.40			3.65			3.45			3.22			3.12
Efficiency ratio (GAAP)	60.94			60.05			58.84			60.16			65.46
Efficiency ratio, fully tax-equivalent (non-GAAP)(1)	57.16			54.33			55.26			57.66			64.65
Annualized ratio of total noninterest expenses to average assets (GAAP)	2.24			2.34			2.18			2.18			2.34
Annualized ratio of core expenses to average assets (non-GAAP)(1)	2.14			2.14			2.09			2.14			2.28

(1) Refer to "Non-GAAP Measures" in this earnings release for additional information on the usage and presentation of these non-GAAP measures, and refer to these financial tables for the reconciliations to the most directly comparable GAAP measures.


HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE AND FULL TIME EQUIVALENT EMPLOYEE DATA
	As of and for the Quarter Ended
	3/31/2023			12/31/2022			9/30/2022			6/30/2022			3/31/2022
Common Share Data
Book value per common share	$	40.38		$	38.25		$	36.41		$	39.19		$	42.98
Tangible book value per common share (non-GAAP)(1)	$	26.30		$	24.09		$	22.20		$	24.94		$	28.66
ASC 320 effect on book value per common share	$	(13.35)		$	(14.58)		$	(15.31)		$	(11.43)		$	(6.74)
Common shares outstanding, net of treasury stock	42,558,726			42,467,394			42,444,106			42,439,439			42,369,908
Tangible common equity ratio (non-GAAP)(1)	5.72		%	5.21		%	4.94		%	5.56		%	6.52		%
Adjusted tangible common equity ratio (non-GAAP)(1)	8.61		%	8.37		%	8.35		%	8.11		%	8.06		%

Other Selected Trend Information
Effective tax rate	22.50		%	18.68		%	19.97		%	22.89		%	21.95		%
Full time equivalent employees	1,991			2,002			2,020			2,087			2,208

Loans Held to Maturity
Commercial and industrial	$	3,498,345		$	3,464,414		$	3,278,703		$	3,059,519		$	2,814,513
Paycheck Protection Program ("PPP")	8,258			11,025			13,506			23,031			74,065
Owner occupied commercial real estate	2,312,538			2,265,307			2,285,973			2,282,833			2,266,076
Commercial and business lending	5,819,141			5,740,746			5,578,182			5,365,383			5,154,654
Non-owner occupied commercial real estate	2,421,341			2,330,940			2,219,542			2,321,718			2,161,761
Real estate construction	1,102,186			1,076,082			996,017			845,045			842,483
Commercial real estate lending	3,523,527			3,407,022			3,215,559			3,166,763			3,004,244
Total commercial lending	9,342,668			9,147,768			8,793,741			8,532,146			8,158,898
Agricultural and agricultural real estate	810,183			920,510			781,354			836,703			766,443
Residential mortgage	841,084			853,361			852,928			845,270			825,242
Consumer	501,418			506,713			495,509			464,099			426,802
Total loans held to maturity	$	11,495,353		$	11,428,352		$	10,923,532		$	10,678,218		$	10,177,385













Total unfunded loan commitments	$	4,867,925		$	4,729,677		$	4,664,379		$	4,458,874		$	4,130,316

Deposits
Demand-customer	$	5,119,554		$	5,701,340		$	6,083,563		$	6,087,304		$	6,376,249
Savings-customer	8,647,396			8,903,747			8,927,535			9,050,011			8,661,306
Savings-wholesale	609,213			1,090,644			1,132,988			1,009,667			575,121
Total savings	9,256,609			9,994,391			10,060,523			10,059,678			9,236,427
Time-customer	1,071,476			851,539			973,035			1,003,568			979,008
Time-wholesale	2,233,707			965,739			150,000			75,000			75,000
Total time	3,305,183			1,817,278			1,123,035			1,078,568			1,054,008
Total deposits	$	17,681,346		$	17,513,009		$	17,267,121		$	17,225,550		$	16,666,684

Total customer deposits	$	14,838,426		$	15,456,626		$	15,984,133		$	16,140,883		$	16,016,563
Total wholesale deposits	2,842,920			2,056,383			1,282,988			1,084,667			650,121
	$	17,681,346		$	17,513,009		$	17,267,121		$	17,225,550		$	16,666,684

(1) Refer to "Non-GAAP Measures" in this earnings release for additional information on the usage and presentation of these non-GAAP measures, and refer to these financial tables for the reconciliations to the most directly comparable GAAP measures.


HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
	As of and for the Quarter Ended
	3/31/2023			12/31/2022			9/30/2022			6/30/2022			3/31/2022
Allowance for Credit Losses-Loans
Balance, beginning of period	$	109,483		$	105,715		$	101,353		$	100,522		$	110,088

Provision for credit losses	2,184			2,075			4,388			1,545			2,628
Charge-offs	(2,151)			(2,668)			(938)			(1,473)			(13,217)
Recoveries	3,191			4,361			912			759			1,023
Balance, end of period	$	112,707		$	109,483		$	105,715		$	101,353		$	100,522

Allowance for Unfunded Commitments
Balance, beginning of period	$	20,196		$	18,884		$	17,780		$	16,079		$	15,462

Provision for credit losses	890			1,312			1,104			1,701			617
Balance, end of period	$	21,086		$	20,196		$	18,884		$	17,780		$	16,079

Allowance for lending related credit losses	$133,793			$129,679			$124,599			$119,133			$116,601

Provision for Credit Losses
Provision for credit losses-loans	$	2,184		$	2,075		$	4,388		$	1,545		$	2,628
Provision for credit losses-unfunded commitments	890			1,312			1,104			1,701			617

Total provision for credit losses	$	3,074		$	3,387		$	5,492		$	3,246		$	3,245

Asset Quality

Nonaccrual loans	$	58,066		$	58,231		$	64,560		$	62,909		$	64,174
Loans past due ninety days or more	174			273			678			95			246
Other real estate owned	7,438			8,401			8,030			4,528			1,422
Other repossessed assets	24			26			—			—			34
Total nonperforming assets	$	65,702		$	66,931		$	73,268		$	67,532		$	65,876









Nonperforming Assets Activity
Balance, beginning of period	$	66,931		$	73,268		$	67,532		$	65,876		$	71,889
Net loan (charge-offs)/recoveries	1,040			1,693			(26)			(714)			(12,194)
New nonperforming loans	4,626			1,439			8,388			8,590			15,832

Reduction of nonperforming loans(1)	(5,711)			(8,875)			(2,015)			(5,244)			(8,448)
Net OREO/repossessed assets sales proceeds and losses	(1,184)			(594)			(611)			(976)			(1,203)


Balance, end of period	$	65,702		$	66,931		$	73,268		$	67,532		$	65,876

Asset Quality Ratios
Ratio of nonperforming loans to total loans	0.51		%	0.51		%	0.60		%	0.59		%	0.63		%

Ratio of nonperforming assets to total assets	0.33			0.33			0.37			0.34			0.34
Annualized ratio of net loan charge-offs/(recoveries) to average loans	(0.04)			(0.06)			0.00			0.03			0.49
Allowance for loan credit losses as a percent of loans	0.98			0.96			0.97			0.95			0.99
Allowance for lending related credit losses as a percent of loans	1.16			1.13			1.14			1.12			1.15
Allowance for loan credit losses as a percent of nonperforming loans	193.52			187.14			162.05			160.87			156.04
Loans delinquent 30-89 days as a percent of total loans	0.10			0.04			0.10			0.06			0.10

(1) Includes principal reductions, transfers to performing status and transfers to OREO.


HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS
	For the Quarter Ended
	March 31, 2023							December 31, 2022							March 31, 2022
	Average Balance			Interest		Rate		Average Balance			Interest		Rate		Average Balance			Interest		Rate
Earning Assets
Securities:
Taxable	$	6,096,888		$	55,976	3.72	%	$	6,122,313		$	53,178	3.45	%	$	6,501,664		$	32,620	2.03	%
Nontaxable(1)	922,676			7,630		3.35		890,368			7,762		3.46		1,106,951			7,851		2.88
Total securities	7,019,564			63,606		3.67		7,012,681			60,940		3.45		7,608,615			40,471		2.16
Interest on deposits with other banks and short-term investments	105,400			1,131		4.35		151,405			1,410		3.69		216,451			71		0.13
Federal funds sold	—			—		—		739			11		5.91		11			—		—
Loans:(2)
Commercial and industrial(1)	3,459,317			49,907		5.85		3,346,843			45,290		5.37		2,744,336			27,053		4.00
PPP loans	9,970			26		1.06		12,252			397		12.86		132,050			4,323		13.28
Owner occupied commercial real estate	2,289,002			26,769		4.74		2,277,055			26,194		4.56		2,243,522			21,278		3.85
Non-owner occupied commercial real estate	2,331,318			30,749		5.35		2,286,298			29,273		5.08		2,060,548			21,163		4.17
Real estate construction	1,099,026			18,131		6.69		1,050,802			16,585		6.26		847,250			9,276		4.44
Agricultural and agricultural real estate	835,648			11,353		5.51		785,647			10,159		5.13		745,348			7,006		3.81
Residential mortgage	852,561			9,273		4.41		858,767			9,168		4.24		843,881			8,085		3.89
Consumer	501,236			8,242		6.67		499,849			7,426		5.89		426,659			4,655		4.42
Less: allowance for credit losses-loans	(110,393)			—		—		(106,500)			—		—		(111,604)			—		—
Net loans	11,267,685			154,450		5.56		11,011,013			144,492		5.21		9,931,990			102,839		4.20
Total earning assets	18,392,649			219,187		4.83	%	18,175,838			206,853		4.52	%	17,757,067			143,381		3.27	%
Nonearning Assets	1,725,356							1,738,011							1,472,805
Total Assets	$	20,118,005						$	19,913,849						$	19,229,872
Interest Bearing Liabilities
Savings	$	9,730,494		$	37,893	1.58	%	$	9,987,692		$	25,950	1.03	%	$	8,889,950		$	2,394	0.11	%
Time deposits	2,257,047			19,005		3.41		1,322,094			6,265		1.88		1,071,675			583		0.22
Short-term borrowings	222,772			2,422		4.41		298,804			2,223		2.95		119,588			46		0.16
Other borrowings	371,921			5,446		5.94		371,442			5,043		5.39		372,187			3,560		3.88
Total interest bearing liabilities	12,582,234			64,766		2.09	%	11,980,032			39,481		1.31	%	10,453,400			6,583		0.26	%
Noninterest Bearing Liabilities
Noninterest bearing deposits	5,518,326							6,009,432							6,497,753
Accrued interest and other liabilities	250,880							264,941							164,590
Total noninterest bearing liabilities	5,769,206							6,274,373							6,662,343
Equity	1,766,565							1,659,444							2,114,129
Total Liabilities and Equity	$	20,118,005						$	19,913,849						$	19,229,872
Net interest income, fully tax-equivalent (non-GAAP)(1)(3)				$	154,421						$	167,372						$	136,798
Net interest spread(1)						2.74	%						3.21	%						3.01	%
Net interest income, fully tax-equivalent (non-GAAP)(1)(3) to total earning assets						3.40	%						3.65	%						3.12	%
Interest bearing liabilities to earning assets	68.41		%					65.91		%					58.87		%

(1) Computed on a tax-equivalent basis using an effective tax rate of 21%.
(2) Nonaccrual loans and loans held for sale are included in the average loans outstanding.
(3) Refer to "Non-GAAP Measures" in this earnings release for additional information on the usage and presentation of these non-GAAP measures, and refer to these financial tables for the reconciliations to the most directly comparable GAAP measures.


HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA AND FULL TIME EQUIVALENT EMPLOYEE DATA
	For the Quarter Ended
	3/31/2023			12/31/2022			9/30/2022			6/30/2022			3/31/2022
Reconciliation of Annualized Return on Average Tangible Common Equity (non-GAAP)
Net income available to common stockholders (GAAP)	$	50,763		$	58,642		$	54,551		$	49,861		$	41,076
Plus core deposit and customer relationship intangibles amortization, net of tax(1)	1,413			1,455			1,466			1,645			1,623
Net income available to common stockholders excluding intangible amortization (non-GAAP)	$	52,176		$	60,097		$	56,017		$	51,506		$	42,699

Average common equity (GAAP)	$	1,655,860		$	1,548,739		$	1,674,306		$	1,731,393		$	2,003,424
Less average goodwill	576,005			576,005			576,005			576,005			576,005
Less average core deposit and customer relationship intangibles, net	24,238			26,046			27,902			29,845			31,931
Average tangible common equity (non-GAAP)	$	1,055,617		$	946,688		$	1,070,399		$	1,125,543		$	1,395,488
Annualized return on average common equity (GAAP)	12.43		%	15.02		%	12.93		%	11.55		%	8.32		%
Annualized return on average tangible common equity (non-GAAP)	20.05		%	25.19		%	20.76		%	18.35		%	12.41		%

Reconciliation of Annualized Net Interest Margin, Fully Tax-Equivalent (non-GAAP)
Net Interest Income (GAAP)	$	152,212		$	165,220		$	155,876		$	142,461		$	134,679
Plus tax-equivalent adjustment(1)	2,209			2,152			2,151			1,977			2,119
Net interest income, fully tax-equivalent (non-GAAP)	$	154,421		$	167,372		$	158,027		$	144,438		$	136,798

Average earning assets	$	18,392,649		$	18,175,838		$	18,157,795		$	17,987,734		$	17,757,067


Annualized net interest margin (GAAP)	3.36		%	3.61		%	3.41		%	3.18		%	3.08		%
Annualized net interest margin, fully tax-equivalent (non-GAAP)	3.40			3.65			3.45			3.22			3.12
Net purchase accounting discount amortization on loans included in annualized net interest margin	0.02			0.03			0.03			0.07			0.05


Reconciliation of Tangible Book Value Per Common Share (non-GAAP)
Common equity (GAAP)	$	1,718,700		$	1,624,350				$	1,545,253				$	1,663,363				$	1,821,152
Less goodwill	576,005			576,005					576,005					576,005					576,005
Less core deposit and customer relationship intangibles, net	23,366			25,154					26,995					28,851					30,934
Tangible common equity (non-GAAP)	$	1,119,329		$	1,023,191				$	942,253				$	1,058,507				$	1,214,213

Common shares outstanding, net of treasury stock	42,558,726			42,467,394					42,444,106					42,439,439					42,369,908
Common equity (book value) per share (GAAP)	$	40.38		$	38.25				$	36.41				$	39.19				$	42.98
Tangible book value per common share (non-GAAP)	$	26.30		$	24.09				$	22.20				$	24.94				$	28.66

Reconciliation of Tangible Common Equity Ratio (non-GAAP)
Tangible common equity (non-GAAP)	$	1,119,329		$	1,023,191				$	942,253				$	1,058,507				$	1,214,213

Total assets (GAAP)	$	20,182,544		$	20,244,228				$	19,682,950				$	19,658,399				$	19,230,879
Less goodwill	576,005			576,005					576,005					576,005					576,005
Less core deposit and customer relationship intangibles, net	23,366			25,154					26,995					28,851					30,934
Total tangible assets (non-GAAP)	$	19,583,173		$	19,643,069				$	19,079,950				$	19,053,543				$	18,623,940
Tangible common equity ratio (non-GAAP)	5.72		%	5.21		%			4.94		%			5.56		%			6.52		%

Reconciliation of Adjusted Tangible Common Equity Ratio (non-GAAP)
Tangible common equity (non-GAAP)	$	1,119,329		$	1,023,191				$	942,253				$	1,058,507				$	1,214,213
Accumulated other comprehensive loss	566,919			620,006					650,636					486,918					286,921
Adjusted tangible common equity (non-GAAP)	$	1,686,248		$	1,643,197		$	—	$	1,592,889		$	—	$	1,545,425		$	—	$	1,501,134

Total tangible assets (non-GAAP)	$	19,583,173		$	19,643,069				$	19,079,950				$	19,053,543				$	18,623,940
Adjusted tangible common equity ratio (non-GAAP)	8.61		%	8.37		%			8.35		%			8.11		%			8.06		%

(1) Computed on a tax-equivalent basis using an effective tax rate of 21%.


HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
Reconciliation of Efficiency Ratio (non-GAAP)	For the Quarter Ended
	3/31/2023			12/31/2022			9/30/2022			6/30/2022			3/31/2022
Net interest income (GAAP)	$	152,212		$	165,220		$	155,876		$	142,461		$	134,679
Tax-equivalent adjustment(1)	2,209			2,152			2,151			1,977			2,119
Fully tax-equivalent net interest income	154,421			167,372			158,027			144,438			136,798
Noninterest income (GAAP)	29,999			29,975			29,181			34,539			34,569
Securities (gains)/losses, net	1,104			153			1,055			2,089			(2,872)
Unrealized (gain)/loss on equity securities, net	(193)			7			211			121			283

Valuation adjustment on servicing rights	—			—			—			—			(1,658)
Adjusted revenue (non-GAAP)	$	185,331		$	197,507		$	188,474		$	181,187		$	167,120

Total noninterest expenses (GAAP)	$	111,043		$	117,218		$	108,883		$	106,479		$	110,797
Less:
Core deposit and customer relationship intangibles amortization	1,788			1,841			1,856			2,083			2,054
Partnership investment in tax credit projects	538			3,247			979			737			77
(Gain)/loss on sales/valuation of assets, net	1,115			2,388			(251)			(3,230)			46
Acquisition, integration and restructuring costs	1,673			2,442			2,156			2,412			576
Core expenses (non-GAAP)	$	105,929		$	107,300		$	104,143		$	104,477		$	108,044

Efficiency ratio (GAAP)	60.94		%	60.05		%	58.84		%	60.16		%	65.46		%
Efficiency ratio, fully tax-equivalent (non-GAAP)	57.16		%	54.33		%	55.26		%	57.66		%	64.65		%

Reconciliation of Annualized Ratio of Core Expenses to Average Assets (non-GAAP)
Total noninterest expenses (GAAP)	$	111,043		$	117,218		$	108,883		$	106,479		$	110,797
Core expenses (non-GAAP)	105,929			107,300			104,143			104,477			108,044

Average assets	$	20,118,005		$	19,913,849		$	19,775,341		$	19,559,091		$	19,229,872
Total noninterest expenses to average assets (GAAP)	2.24		%	2.34		%	2.18		%	2.18		%	2.34		%
Core expenses to average assets (non-GAAP)	2.14		%	2.14		%	2.09		%	2.14		%	2.28		%

Acquisition, integration and restructuring costs
Salaries and employee benefits	$	74		$	424		$	365		$	275		$	340


Professional fees	934			1,587			1,480			1,779			236
Advertising	122			95			131			156			—

Other noninterest expenses	543			336			180			202			—
Total acquisition, integration and restructuring costs	$	1,673		$	2,442		$	2,156		$	2,412		$	576
After tax impact on diluted earnings per common share(1)	$	0.03		$	0.05		$	0.04		$	0.04		$	0.01
















(1) Computed on a tax-equivalent basis using an effective tax rate of 21%.

1st Quarter 2023 Financials

2 Safe Harbor Within the charts and tables presented, certain segments, columns and rows may not sum to totals shown due to rounding. This investor presentation (including any information incorporated herein by reference) and future oral and written statements of HTLF and its management, may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the business, financial condition, results of operations, plans, objectives and future performance of HTLF. Any statements about HTLF's expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. Forward-looking statements may include information about possible or assumed future results of HTLF's operations or performance, and may be based upon beliefs, expectations and assumptions of HTLF's management. These forward-looking statements are generally identified by the use of the words such as "believe", "expect", "anticipate", "plan", "intend", "estimate", "project", "may", "will", "would", "could", "should", "may", "view", "opportunity", "potential", or similar or negative expressions of these words or phrases that are used in this investor presentation, , and future oral and written statements of HTLF and its management. Although HTLF may make these statements based on management’s experience, beliefs, expectations, assumptions and best estimate of future events, the ability of HTLF to predict results or the actual effect or outcomes of plans or strategies is inherently uncertain, and there may be events or factors that management has not anticipated. Therefore, the accuracy and achievement of such forward-looking statements and estimates are subject to a number of risks, many of which are beyond the ability of management to control or predict, that could cause actual results to differ materially from those in its forward-looking statements. These factors, which HTLF currently believes could have a material effect on its operations and future prospects, are detailed below and in the risk factors in HTLF's reports filed with the Securities and Exchange Commission ("SEC"), including the "Risk Factors" section under Item 1A of Part I of HTLF’s Annual Report on Form 10-K for the year ended December 31, 2022, include, among others: • Economic and Market Conditions Risks, including risks related to the deterioration of the U.S. economy in general and in the local economies in which HTLF conducts its operations and future civil unrest, natural disasters, pandemics, such as the COVID-19 pandemic or future pandemics and governmental measures addressing them, climate change and climate-related regulations, persistent inflation, higher interest rates, recession, supply chain issues, labor shortages, terrorist threats or acts of war; • Credit Risks, including risks of increasing credit losses due to deterioration in the financial condition of HTLF's borrowers, changes in asset and collateral values and climate and other borrower industry risks which may impact the provision for credit losses and net charge-offs; • Liquidity and Interest Rate Risks, including the impact of capital market conditions, rising interest rates and changes in monetary policy on our borrowings and net interest income; • Operational Risks, including processing, information systems, cybersecurity, vendor, business interruption, and fraud risks; • Strategic and External Risks, including economic, political and competitive forces impacting our business; • Legal, Compliance and Reputational Risks, including regulatory and litigation risks; and • Risks of Owning Stock in HTLF, including stock price volatility and dilution as a result of future equity offerings and acquisitions. There can be no assurance that other factors not currently anticipated by HTLF will not materially and adversely affect HTLF's business, financial condition and results of operations. Additionally, all statements in this investor presentation, including forward-looking statements speak only as of the date they are made. HTLF does not undertake and specifically disclaims any obligation to publicly release the results of any revisions which may be made to any forward-looking statement to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events or to otherwise update any statement in light of new information or future events. Further information concerning HTLF and its business, including additional factors that could materially affect HTLF’s financial results, is included in HTLF's filings with the Securities and Exchange Commission (the "SEC").

3 1Q 2023 Highlights Liquidity Strengthened • Fed/FHLB borrowing availability of $2.8 billion • $1.3 billion in securities cashflow over the next 12 months - $240 million in 2Q2023 • Cash + unpledged AFS exceeds $4 billion $1.19 EPS available to common shareholders Key Deposit Trends • total deposits flat - customer deposits down 4% • increased customer deposit security - 65% now either insured or collateralized • 1,000+ large depositors contacted in March • Over 8,000 new consumer accounts opened Clean, Stable Credit Trends • (0.04)% NCO/Avg loans annualized • 0.51% non performing loans to total loans - flat from prior quarter • 0.10% delinquencies to total loans $195M Commercial Loan Growth 8.6% annualized Charter Consolidation Progressing and On Track • 4 remaining banks to be consolidated by early 4Q2023 • cost to complete / cost savings still tracking to plan 57.2% Efficiency Ratio fully tax equivalent (non-GAAP)

4 – Proactive outreach to 1,000+ large depositors in March – Increased additional sources of deposit insurance for large depositors – ICS/CDARS: increased by $490 million in the quarter to over $1.3 billion – 65% of customer deposits now either insured or collateralized at quarter end – Increased deposit pricing to address highly competitive environment – 39% customer deposit betas in 1Q 2023 – Cycle to date customer beta is 16% – Retail deposit acquisition campaign - has yielded more than 8,000 new accounts – Increased access and availability to all sources of liquidity – Pledged additional $1.5 billion of securities to the Fed - Fed/FHLB availability at $2.8 billion – Established & pledged collateral to the BTFP program - no usage to date – Fed Funds Lines and Brokered Deposit sources remain open and available – Cash and Unpledged AFS Securities total greater than $4 billion – Fair value mark already in AOCI in Shareholders Equity Proactive Management Strengthening HTLF

Deposit Flows ($B) 5 Deposit Summary Diversified and Stable Deposit Base Uninsured Deposits $17.7 $6.2 35% Total Brokered ICS Collateralized Insured Uninsured/ Non- Collateralized In su re d/ C ol la te ra liz ed $2.9 65% $1.3 $1.2 $6.1 $16.7 $17.2 $17.3 $17.5 $17.7 $9.6 $9.9 $9.8 $9.5 $9.2 $6.4 $6.3 $6.1 $5.9 $5.7 $0.7 $1.1 $1.3 $2.1 $2.8 Commercial Consumer Wholesale 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q2023 • Customer deposits declined 4% Q-o-Q ◦ ~50% came after 3/10 ◦ April deposits stabilizing ◦ Normal 1Q seasonal reduction of ~1% • Over 8,000 new consumer accounts • Well diversified deposit base ◦ Across footprint with no market > 12% ◦ No major industry > than 10% • Attractive customer deposit book ◦ 35% Non Interest Bearing ◦ 81 bps costs of funds ◦ 16% cycle beta / 39% 1Q2023 beta • 65% of deposits insured/collateralized Average Deposit Account Balance Consumer $21,322 Commercial $122,431 Public Funds $1,603,839

Non Interest Bearing 30% Interest Bearing Checking 26% Savings 8% Money Market 14% Time < $100K 3% Time > $100K 3% Wholesale Deposits 3% Brokered CDs 13% Geographic Diversification (by Bank Division)1 Commercial Diversification 2 6 Deposit Diversification Total Deposit Composition Public Admin 10% Health Care 9% Construction 9% Real Estate Rental 8% Non-Profit 7% Finance 7% Education 7% Professional Services 6% Manufacturing 6% Retail Trade 4% Wholesale Trade 3% Other 24% 1. Other Deposits included Brokered and Trust MMDA not allocated to a division. 2. No industry in "other" totals more than 3%. TX 11% CO 11% NM 12% IA 7% IL 8% AZ 8% WI 6% KS/MO 6% CA 5% MN 3% MT 3% Other 20% Non Interest Bearing 35% Interest Bearing Checking 31% Savings 10% Money Market 17% Time < $100K 3% Time > $100K 4% Customer Deposit Composition $17.7B $14.8B

1Q2023 Cost of Funds & Betas 7 Deposit Funding Attractive Customer Deposit Costs Portfolio ($M) Average Cost of Funds Beta Deposit Type 4Q 2022 1Q 2022 4Q 2022 1Q 2023 MARCH 4Q 2022 1Q 2023 Cycle Non Interest Bearing $5,701 $5,120 0.00 % 0.00 % 0.00 % Interest Bearing $8,904 $8,647 0.69 % 1.22 % 1.37 % 23.7 % 57.2 % 23.7 % Customer Non-Time $14,605 $13,767 0.41 % 0.75 % 0.85 % 14.2 % 36.3 % 14.6 % Customer Time $852 $1,071 0.98 % 1.66 % 1.95 % 15.6 % 72.9 % 30.9 % Customer Deposits $15,457 $14,838 0.44 % 0.81 % 0.92 % 14.1 % 38.8 % 15.7 % Wholesale Deposits $2,056 $2,843 3.81 % 4.68 % 5.01 % 97.0 % 92.2 % 96.0 % Total Deposits $17,513 $17,681 0.74 % 1.32 % 1.52 % 23.2 % 61.9 % 26.5 % Cost of Funds and Beta Trends Note: Cycle beta starting point 1Q2022 Note: Beta is defined as the change in deposit cost of funds rate divided by the change in Fed Funds rate - over the same time period 7% 6% 14% 39% 12% 14% 23% 62% 0.05% 0.70% 2.12% 3.80% 4.74% 0.81% 1.32% Customer Deposit Beta Total Deposit Beta Fed Funds Customer Deposit COF Total Deposit COF 1Q2022 2Q2022 3Q2022 4Q2022 1Q2023

• Actively took steps in increase the availability of FHLB and Fed Funds • No discount window or material short term FHLB borrowings at quarter end • Shifted funding out of overnight borrowings and into brokered CDs, which increases both liquidity & funding durability/duration • Utilizing brokered CD market allows us to keep other immediate funding lines available, while also better matching cashflows • Principal cash flow from portfolio is ~$240 million in Q2 & ~1.3 billion for next 12 months • Total unencumbered AFS investment balance as of 3/31 is $3.83 billion to allow for flexibility in balance sheet management 8 3/31 Sources of Liquidity ($M) Highly Liquid Balance Sheet Strong Liquidity Sources with Access to Significant Funding Type Outstandings Available Securitized Sources FRB Window $ — $ 1,604.9 Fed BTFP — 476.9 FHLB Advances 1.7 679.6 Total Securitized 1.7 2,761.4 Additional Unsecured Sources Federal Funds Purchased — 247.5 Wholesale / Brokered CDs1 2,842.9 1,689.4 Total Unsecured 2,842.9 1,936.9 Total $ 2,844.6 $ 4,698.3 On-Balance Cash & Equivalents $ 362.1 AFS Securities, unencumbered 3,830.0 Total On-Balance $ 4,192.1 Liquidity Metrics 12/31/2022 3/31/2023 Cash + AFS / Assets 32.2 % 32.0 % Loans / Deposits 65.3 % 65.0 % Loans / Customer Deposits 73.9 % 77.5 % Investments / Assets 34.8 % 34.7 % Total Borrowings / Assets 3.7 % 2.3 % 1. Brokered availability based on internal limit

Investment Portfolio 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 Average Book Value ($ in millions) $7,609 $7,335 $7,695 $7,013 $7,020 Book Yield 2.16% 2.46% 1.94% 3.45% 3.67% Modified Duration 5.54 5.83 6.09 6.19 6.19 $ Investments Pledged (EoQ) $1,218 $1,224 $1,266 $1,487 $2,964 % HTM / Total Investments (EoQ) 1.1% 1.1% 11.9% 11.8% 11.9% • Principal cash flow from portfolio of ~$1.3 billion over the next 12 months ▪ Non-Agency CMBS portfolio detail • Portfolio is floating rate, 1-2 year lives, avg 63% LTV, & combined 67% credit enhancement • Office CRE = $12.2 million, 0.16% of total portfolio ▪ Unrealized gain/loss of the AFS portfolio improved $67 million (10%) during the quarter ▪ 2Q23 entered into new $1.3 billion of swaps designed to hedge unrealized losses against rising mid to long term rates ▪ Doubled securities pledged to Fed/FHLB to ~ $3B ▪ HTM securities are 11.9% of total securities vs peer banks of 25%+ Sector Amortized Cost Basis Unrealized G/L US Treasury $ 32,391 $ (459) US Agency 49,062 (5,478) Municipal 1,023,650 (135,728) MBS - Agency 2,002,260 (244,791) MBS - Non-Agency 2,260,462 (142,580) CMBS - Agency 99,914 (13,892) CMBS - Non-Agency 675,425 (17,551) ABS (67% SBA secured) 448,001 (12,478) Corporate Bonds 59,202 (1,357) Equities w/ determinable value 20,604 — Other securities 72,364 — Total AFS Investments $ 6,743,336 $ (574,315) Municipal 832,098 (16,426) Total HTM Investments $ 832,098 $ (16,426) Total $ 7,575,434 $ (590,740) 9 Investment Portfolio Portfolio Detail ($000) + $1.5B

Loan Composition by Product Type Loans by Bank Division Loan Held to Maturity ($M)Operating Line Utilization Rates C&I 31% CRE-OO 20% CRE-NOO 21% RESI 7% AG 7% CONS 4% CONST 10% Yield on Loans: 5.56%1 TX 14% CO 15% NM 8% IA 9% IL 9% AZ 12% WI 9% KS/MO 5% CA 8% MN 7% MT 4% 31% 33% 33% 35% 33% 44% 42% 36% 46% 39% C&I Loans Ag 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 $10,177 $10,678 $10,924 $11,428 $11,495 $10,103 $10,655 $10,910 $11,417 $11,487 HTM Loans ex PPP PPP 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 10 1. Based on average loans QTD as of March 31, 2023 and includes AFS loans and nonaccrual loans; includes purchase accounting of 0.02% Diversified Loan Portfolio Across both Product and Footprint

Highlights Hospitality 18% Logistics/ Distribution 10% Medical 14% Multifamily 11% Office 17% Retail 16% Industrial Flex/ Other 7% Other 7% CO 22% NM 14% TX 11% AZ 6% KS/MO 7% IA 6% IL 8% CA 9% WI 4% MN 10% MT 3% ▪ Diversified across Property and Geography ▪ 0.46% nonaccrual ▪ CRE-NOO loan portfolio of 21% of total HTM loans vs peer banks of 23%+ CRE-NOO Loans ($M) Geographic Diversification (by Bank Division)Property Type - Diversified by Industry $2,162 $2,322 $2,220 $2,331 $2,421 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 11 CRE Non Owner Occupied Portfolio 21% of total loans 1. LTV is only calculated on commercial loans greater than $1 million Total Portfolio Top 20 Loans $1.6M avg loan balance $24.4M avg loan balance 61% Avg LTV of portfolio1 63% Avg LTV of portfolio1 1.57 debt service coverage 1.70 debt service coverage

▪ Diversified across Geography ▪ 3.7% of portfolio by balance / 2.8% of portfolio by exposure ▪ Granular portfolio - $1.3 million average loan size ▪ 58% Average LTV of portfolio1 ▪ 1.44 debt service coverage ratio ▪ 0% nonaccrual ▪ Mostly non-central business district ▪ For a review of CBMS Non-Agency Office exposure within our Investment holdings, please refer back to slide 9 CRE-NOO Office Loans ($M) Geographic Diversification (by Bank Division) $341 $367 $352 $380 $425 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 12 CRE Non Owner Occupied - Office 3.7% of total loans Highlights 1. LTV is only calculated on commercial loans greater than $1 million CO 28% NM 8% TX 8% AZ 4% KS/MO 10% IA 7% IL 4% CA 8% WI 1% MN 20%MT 2%

13 Construction Portfolio 10% of total loans CO 23% NM 9% TX 18% AZ 13% KS/MO 5% IA 5% IL 6% CA 10% WI 5% MN 2% MT 4% Multifamily 27% Logistics/ Distribution 19% Land 14% 1-4 Family 13% Industrial Flex/ Other 9% Office 6% Medical 5% Other 7% ▪ Diversified across Property Type and Geography ▪ 0.21% nonaccrual / 1.0% Non Pass ▪ Construction loan portfolio of 10% of total HTM loans vs peer banks of 12%+ Construction Loans ($B) Geographic Diversification (by Bank Division)Property Type - Diversified by Industry $0.8 $0.8 $1.0 $1.1 $1.1 $0.8 $0.9 $0.9 $0.9 $1.0 Balance Unfunded 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 Highlights 1. LTV is only calculated on commercial loans greater than $1 million Total Portfolio Top 20 Loans $808K avg loan balance $9.4M avg loan balance $1.4M avg loan exposure $31.4M avg loan exposure 63% Avg LTV of portfolio1 54% Avg LTV of portfolio1 1.58 debt service coverage 1.19 debt service coverage

$22,881 $7,362 $4,766 $11,684 Delinquencies % Delinquencies / Total Loans 2020 2021 2022 1Q 2023 Non-Performing Assets Non-Performing Loans Net Charge-offs/(Recoveries) Loan Delinquencies 30-89 days $94,970 $71,889 $66,931 $65,702 0.53% 0.37% 0.33% 0.33% NPAs ($000) NPAs / Assets (%) 2020 2021 2022 1Q 2023 $88,106 $69,919 $58,504 $58,240 0.88% 0.70% 0.51% 0.51% NPLs ($000) NPLs / Gross Loans (%) 2020 2021 2022 1Q 2023 $28,918 $3,812 $11,241 -$1,040 0.32% 0.04% 0.11% (0.04)% NCOs ($000) NCOs / Avg Loans (%) 2020 2021 2022 2023 YTD 14 Summary Asset Quality Note: Non-performing loans defined as nonaccrual loans + loans 90 days past due. Non-performing assets defined as nonperforming loans + other real estate owned + other repossessed assets 0.07% 0.04% 0.23% 0.10%

11.85 12.39 11.81 12.02 10.92 11.53 11.07 11.28 7.50 CET1 Ratio Tier 1 Capital Ratio CET1 ex AOCI 2020 2021 2022 1Q 2023 TCE/TA (%) 1,2 Tier 1 Leverage Ratio (%) CET1 and Tier 1 Capital Ratio (%) Total Risk Based Capital Ratio (%) 7.81 7.84 5.21 5.72 7.39 7.87 8.37 8.61 TCE/TA Adjusted TCE/TA 2020 2021 2022 1Q 2023 9.02 8.57 9.13 9.25 5.00 2020 2021 2022 1Q 2023 14.71 15.90 14.76 14.98 11.20 Total RBC Ratio (%) RBC ex AOCI 2020 2021 2022 1Q 2023 CET1 Tier 1 15 1. See appendix for reconciliation of non-GAAP financial measures 2. Adjusted TCE/TA is calculated excluding AOCI Note: Lines depict well capitalized bank levels Consolidated Capital Ratios Exceeding Well Capitalized Levels 6.50 8.00 10.00 5.00

3.69% 3.33% 3.37% 3.40% 3.57% 3.24% 3.33% 3.38% 0.12% 0.09% 0.04% 0.02% 2020 2021 2022 2023 YTD 3.12% 3.22% 3.45% 3.65% 3.40% 3.07% 3.15% 3.42% 3.62% 3.39% 0.05% 0.07% 0.03% 0.03% 0.02% 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 n Core Business n Purchase Accounting 161. On a fully tax equivalent basis; See appendix for reconciliation of non-GAAP financial measures Net Interest Margin Breakdown Quarterly - NIM1Annualized - NIM1

▪ Consolidate 11 existing bank charters into HTLF Bank, based in Denver, Colorado ▪ Banks maintain their current brands with local leadership and decision making ▪ On track to complete the remaining 4 banks by early 4Q2023 ▪ Total projected restructuring costs of $19-20 million - On Track ▪ Benefits from consolidation expected to reach $20 million annually - On Track HTLF Branch Count 142 130 119 119 12/31/20 12/31/21 12/31/22 3/31/23 Bank Optimization ▪ Divesting of Non-Core Business ▪ Closed sale of the residual MSR portfolio ▪ Announced sale of the recordkeeping and administration of the Retirement Plan Services business ▪ Branch optimization progress - 16% reduction in branches since 12/31/2020 ▪ 2-3 more planned for 2023 17 Bank Optimization Initiatives Charter Consolidation Initiative

2.51% 2.33% 2.26% 2.24% 2.34% 2.22% 2.16% 2.14% $14.8 $20.1 Core Expenses Non-Core Expenses Average Assets ($B) 2020 2021 2022 1Q 2023 56.65% 59.48% 57.74% 57.16% 2020 2021 2022 1Q 2023 1. Non-Core Expenses include: restructuring costs, tax credits, CDI Amortization, and gains/losses on sale of assets 2. See appendix for reconciliation of non-GAAP financial measures Efficiency Ratio2 Trend Leveraging Core Costs and Growth 18 Operating Efficiency Improving by Leveraging Core Costs and Growth 1,2

19 Organic Growth Healthy Returns Strong Customer Deposits Improving Efficiency Organic growth driven by talent additions, build out of middle market banking, and local market expertise Large granular and diversified customer deposit base that supports a healthy net interest margin Charter consolidation and branch optimization paired with leveraging new technology Long term focus on EPS growth and consistently increasing dividends Solid Credit Profile Solid credit metrics a with a well diversified portfolio reduces credit risk HTLF Investor Summary Improving Franchise Value

20 Contact Information

21 Non-GAAP Reconciliations

Annualized net interest margin, fully tax-equivalent, adjusts net interest income for the tax-favored status of certain loans and securities. Management believes this measure enhances the comparability of net interest income arising from taxable and tax-exempt sources. Efficiency ratio, fully tax equivalent, expresses non-interest expenses as a percentage of fully tax-equivalent net interest income and non- interest income. This efficiency ratio is presented on a tax-equivalent basis which adjusts net interest income and non-interest expenses for the tax favored status of certain loans, securities, and tax credit projects. Management believes the presentation of this non-GAAP measure provides supplemental useful information for proper understanding of the financial results as it enhances the comparability of income and expenses arising from taxable and nontaxable sources and excludes specific items as noted in reconciliation contained in this presentation. Net interest income, fully tax equivalent, is net income adjusted for the tax-favored status of certain loans and securities. Management believes this measure enhances the comparability of net interest income arising from taxable and tax-exempt sources. Tangible book value per common share is total common equity less goodwill and core deposit and customer relationship intangibles, net, divided by common shares outstanding, net of treasury. This measure is included as it is considered to be a critical metric to analyze and evaluate use of equity, financial condition and capital strength. Tangible common equity ratio is total common equity less goodwill and core deposit and customer relationship intangibles, net, divided by total assets less goodwill and core deposit and customer relationship intangibles, net. This measure is included as it is considered to be a critical metric to analyze and evaluate financial condition and capital strength. Adjusted tangible common equity ratio is total common equity less goodwill, core deposit and customer relationship intangibles, net, and accumulated other comprehensive loss/income, divided by total assets less goodwill and core deposit and customer relationship intangibles, net. This measure is included as it is considered to be a critical metric to analyze and evaluate financial condition and capital strength excluding the variability of accumulated other comprehensive income (loss). Annualized return on average tangible common equity is net income excluding intangible amortization calculated as (1) net income excluding tax-effected core deposit and customer relationship intangibles amortization, divided by (2) average common equity less goodwill and core deposit and customer relationship intangibles, net. This measure is included as it is considered to be a critical metric to analyze and evaluate use of equity, financial condition and capital strength. Annualized ratio of core expenses to average assets adjusts noninterest expenses to exclude specific items noted in the reconciliation. Management includes this measure as it is considered to be a critical metric to analyze and evaluate controllable expenses related to primary business operations. 22 Non-GAAP Financial Measures

Full Yr 2022 Full Yr 2021 Full Yr 2020 Reconciliation of Tangible Book Value Per Common Share (non-GAAP) Common stockholders' equity (GAAP) $ 1,624,350 $ 2,071,473 $ 1,968,526 Less goodwill 576,005 576,005 576,005 Less core deposit and customer relationship intangibles, net 25,154 32,988 42,383 Tangible common stockholders' equity (non-GAAP) $ 1,023,191 $ 1,462,480 $ 1,350,138 Common shares outstanding, net of treasury stock 42,467,394 42,275,264 42,093,862 Common stockholders' equity (book value) per share (GAAP) $ 38.25 $ 49.00 $ 46.77 Tangible book value per common share (non-GAAP) $ 24.09 $ 34.59 $ 32.07 Reconciliation of Tangible Common Equity Ratio (non-GAAP) Tangible common stockholders' equity (non-GAAP) $ 1,023,191 $ 1,462,480 $ 1,350,138 Total assets (GAAP) $ 20,244,228 $ 19,274,549 $ 17,908,339 Less goodwill 576,005 576,005 576,005 Less core deposit and customer relationship intangibles, net 25,154 32,988 42,383 Total tangible assets (non-GAAP) $ 19,643,069 $ 18,665,556 $ 17,289,951 Tangible common equity ratio (non-GAAP) 5.21 % 7.84 % 7.81 % Reconciliation of Adjusted Tangible Common Equity Ratio (non-GAAP) Tangible common stockholders' equity (non-GAAP) $ 1,023,191 $ 1,462,480 $ 1,350,138 Accumulated other comprehensive loss (income) 620,006 5,752 (72,719) Adjusted tangible common equity (non-GAAP) $ 1,643,197 $ 1,468,232 $ 1,277,419 Total tangible assets (non-GAAP) $ 19,643,069 $ 18,665,556 $ 17,289,951 Adjusted tangible common equity (non-GAAP) 8.37 % 7.87 % 7.39 % Reconciliation of Annualized Net Interest Margin, Fully Tax-Equivalent (non-GAAP) Net Interest Income (GAAP) $ 598,236 $ 560,560 $ 491,729 Plus tax-equivalent adjustment(2) 8,399 7,212 5,466 Net interest income, tax-equivalent (non-GAAP) $ 606,635 $ 567,772 $ 497,195 Average earning assets $ 18,021,134 $ 17,025,088 $ 13,481,613 Annualized net interest margin (GAAP) 3.32 % 3.29 % 3.65 % Annualized net interest margin, fully tax-equivalent (non-GAAP) 3.37 % 3.33 % 3.69 % Purchase accounting discount amortization on loans included in annualized net interest margin 0.04 % 0.09 % 0.12 % (1) Computed on a tax-equivalent basis using an effective tax rate of 21%. 23 Non-GAAP Reconciliations (Dollars in thousands except per share data)

Full Yr 2022 Full Yr 2021 Full Yr 2020 Reconciliation of Non-GAAP Measure-Efficiency Ratio Net interest income (GAAP) $ 598,236 $ 560,560 $ 491,729 Tax-equivalent adjustment(1) 8,399 7,212 5,466 Fully tax-equivalent net interest income 606,635 567,772 497,195 Noninterest income (GAAP) 128,264 128,935 120,291 Securities gains, net 425 (5,910) (7,793) Unrealized (gain) loss on equity securities, net 622 (58) (640) Gain on extinguishment of debt — — — Valuation adjustment on servicing rights (1,658) (1,088) 1,778 Adjusted income (non-GAAP) $ 734,288 $ 689,651 $ 610,831 Total noninterest expenses (GAAP) $ 443,377 $ 431,812 $ 370,963 Less: Core deposit and customer relationship intangibles amortization 7,834 9,395 10,670 Partnership investment in tax credit projects 5,040 6,303 3,801 (Gain) loss on sales/valuations of assets, net (1,047) 588 5,101 Acquisition, integration and restructuring costs 7,586 5,331 5,381 Core expenses (non-GAAP) $ 423,964 $ 410,195 $ 346,010 Efficiency ratio (GAAP) 61.03 % 62.63 % 60.61 % Efficiency ratio, fully tax-equivalent (non-GAAP) 57.74 % 59.48 % 56.65 % Reconciliation of Annualized Ratio of Core Expenses to Average Assets (non-GAAP) Total noninterest expenses (GAAP) $ 443,377 $ 431,812 $ 370,963 Core expenses (non-GAAP) 423,964 410,195 346,010 Average assets $ 19,621,839 $ 18,508,273 $ 14,782,605 Total noninterest expenses to average assets (GAAP) 2.26 % 2.33 % 2.51 % Core expenses to average assets (non-GAAP) 2.16 % 2.22 % 2.34 % (1) Computed on a tax-equivalent basis using an effective tax rate of 21%. 24 Non-GAAP Reconciliations (cont.) (Dollars in thousands except per share data)

Non-GAAP Reconciliations (cont.) (Dollars in thousands except per share data) Full Yr 2022 Full Yr 2021 Full Yr 2020 Reconciliation of Return on Average Tangible Common Equity (non-GAAP) Net income (GAAP) $ 204,130 $ 211,873 $ 133,487 Plus core deposit and customer relationship intangibles amortization, net of tax(1) 6,189 7,422 8,429 Net income excluding intangible amortization (non-GAAP) $ 210,319 $ 219,295 $ 141,916 Average common equity (GAAP) $ 1,738,041 $ 2,020,200 $ 1,656,708 Less average goodwill 576,005 576,005 456,854 Less average core deposit and customer relationship intangibles, net 28,912 37,554 44,298 Average tangible common equity (non-GAAP) $ 1,133,124 $ 1,406,641 $ 1,155,556 Annualized return on average common equity (GAAP) 11.74 % 10.49 % 8.06 % Annualized return on average tangible common equity (non-GAAP) 18.56 % 15.59 % 12.28 % (1) Computed on a tax-equivalent basis using an effective tax rate of 21%. 25

3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Reconciliation of Tangible Book Value Per Common Share (non-GAAP) Common stockholders' equity (GAAP) $ 1,718,700 $ 1,624,350 $ 1,545,253 $ 1,663,363 $ 1,821,152 Less goodwill 576,005 576,005 576,005 576,005 576,005 Less core deposit and customer relationship intangibles, net 23,366 25,154 26,995 28,851 30,934 Tangible common stockholders' equity (non-GAAP) $ 1,119,329 $ 1,023,191 $ 942,253 $ 1,058,507 $ 1,214,213 Common shares outstanding, net of treasury stock 42,558,726 42,467,394 42,444,106 42,439,439 42,369,908 Common stockholders' equity (book value) per share (GAAP) $ 40.38 $ 38.25 $ 36.41 $ 39.19 $ 42.98 Tangible book value per common share (non-GAAP) $ 26.30 $ 24.09 $ 22.20 $ 24.94 $ 28.66 Reconciliation of Tangible Common Equity Ratio (non-GAAP) Tangible common stockholders' equity (non-GAAP) $ 1,119,329 $ 1,023,191 $ 942,253 $ 1,058,507 $ 1,214,213 Total assets (GAAP) $ 20,182,544 $ 20,244,228 $ 19,682,950 $ 19,658,399 $ 19,230,879 Less goodwill 576,005 576,005 576,005 576,005 576,005 Less core deposit and customer relationship intangibles, net 23,366 25,154 26,995 28,851 30,934 Total tangible assets (non-GAAP) $ 19,583,173 $ 19,643,069 $ 19,079,950 $ 19,053,543 $ 18,623,940 Tangible common equity ratio (non-GAAP) 5.72 % 5.21 % 4.94 % 5.56 % 6.52 % Reconciliation of Adjusted Tangible Common Equity Ratio (non-GAAP) Tangible common stockholders' equity (non-GAAP) $ 1,119,329 $ 1,023,191 $ — $ 942,253 $ — $ 1,058,507 $ — $ 1,214,213 Accumulated other comprehensive loss 566,919 620,006 650,636 486,918 286,921 Adjusted tangible common equity (non-GAAP) $ 1,686,248 $ 1,643,197 $ — $ 1,592,889 $ — $ 1,545,425 $ — $ 1,501,134 Total tangible assets (non-GAAP) $ 19,583,173 $ 19,643,069 $ 19,079,950 $ 19,053,543 $ 18,623,940 Adjusted tangible common equity ratio (non-GAAP) 8.61 % 8.37 % 8.35 % 8.11 % 8.06 % Reconciliation of Annualized Net Interest Margin, Fully Tax-Equivalent (non-GAAP) Net Interest Income (GAAP) $ 152,212 $ 165,220 $ 155,876 $ 142,461 $ 134,679 Plus tax-equivalent adjustment(1) 2,209 2,152 2,151 1,977 2,119 Net interest income, fully tax-equivalent (non-GAAP) $ 154,421 $ 167,372 $ 158,027 $ 144,438 $ 136,798 Average earning assets $18,392,649 $18,175,838 $18,157,795 $17,987,734 $17,757,067 Annualized net interest margin (GAAP) 3.36 % 3.61 % 3.41 % 3.18 % 3.08 % Annualized net interest margin, fully tax-equivalent (non-GAAP) 3.40 % 3.65 % 3.45 % 3.22 % 3.12 % Purchase accounting discount amortization on loans included in annualized net interest margin 0.02 % 0.03 % 0.03 % 0.07 % 0.05 % (1) Computed on a tax-equivalent basis using an effective tax rate of 21%. 26 Non-GAAP Reconciliations (cont.) (Dollars in thousands except per share data)

3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Reconciliation of Non-GAAP Measure-Efficiency Ratio Net interest income (GAAP) $ 152,212 $ 165,220 $ 155,876 $ 142,461 $ 134,679 Tax-equivalent adjustment(1) 2,209 2,152 2,151 1,977 2,119 Fully tax-equivalent net interest income 154,421 167,372 158,027 144,438 136,798 Noninterest income (GAAP) 29,999 29,975 29,181 34,539 34,569 Securities (gains)/losses, net 1,104 153 1,055 2,089 (2,872) Unrealized (gain) loss on equity securities, net (193) 7 211 121 283 Valuation adjustment on servicing rights — — — — (1,658) Adjusted revenue (non-GAAP) $ 185,331 $ 197,507 $ 188,474 $ 181,187 $ 167,120 Total noninterest expenses (GAAP) $ 111,043 $ 117,218 $ 108,883 $ 106,479 $ 110,797 Less: Core deposit and customer relationship intangibles amortization 1,788 1,841 1,856 2,083 2,054 Partnership investment in tax credit projects 538 3,247 979 737 77 (Gain) loss on sales/valuation of assets, net 1,115 2,388 (251) (3,230) 46 Acquisition, integration and restructuring costs 1,673 2,442 2,156 2,412 576 Core expenses (non-GAAP) $ 105,929 $ 107,300 $ 104,143 $ 104,477 $ 108,044 Efficiency ratio (GAAP) 60.94 % 60.05 % 58.84 % 60.16 % 65.46 % Efficiency ratio, fully tax-equivalent (non-GAAP) 57.16 % 54.33 % 55.26 % 57.66 % 64.65 % Reconciliation of Annualized Ratio of Core Expenses to Average Assets (non-GAAP) Total noninterest expenses (GAAP) $ 111,043 $ 117,218 $ 108,883 $ 106,479 $ 110,797 Core expenses (non-GAAP) 105,929 107,300 104,143 104,477 108,044 Average assets $ 20,118,005 $ 19,913,849 $ 19,775,341 $ 19,559,091 $ 19,229,872 Total noninterest expenses to average assets (GAAP) 2.24 % 2.34 % 2.18 % 2.18 % 2.34 % Core expenses to average assets (non-GAAP) 2.14 % 2.14 % 2.09 % 2.14 % 2.28 % (1) Computed on a tax-equivalent basis using an effective tax rate of 21%. 27 Non-GAAP Reconciliations (cont.) (Dollars in thousands except per share data)

28 Non-GAAP Reconciliations (cont.) (Dollars in thousands except per share data) 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Reconciliation of Annualized Return on Average Tangible Common Equity (non-GAAP) Net income available to common stockholders (GAAP) $ 50,763 $ 58,642 $ 54,551 $ 49,861 $ 41,076 Plus core deposit and customer relationship intangibles amortization, net of tax(1) 1,413 1,455 1,466 1,645 1,623 Net income available to common stockholders excluding intangible amortization (non-GAAP) $ 52,176 $ 60,097 $ 56,017 $ 51,506 $ 42,699 Average common stockholders' equity (GAAP) $ 1,655,860 $ 1,548,739 $ 1,674,306 $ 1,731,393 $ 2,003,424 Less average goodwill 576,005 576,005 576,005 576,005 576,005 Less average core deposit and customer relationship intangibles, net 24,238 26,046 27,902 29,845 31,931 Average tangible common stockholders' equity (non-GAAP) $ 1,055,617 $ 946,688 $ 1,070,399 $ 1,125,543 $ 1,395,488 Annualized return on average common equity (GAAP) 12.43 % 15.02 % 12.93 % 11.55 % 8.32 % Annualized return on average tangible common equity (non-GAAP) 20.05 % 25.19 % 20.76 % 18.35 % 12.41 % (1) Computed on a tax-equivalent basis using an effective tax rate of 21%.

Cover	Apr. 24, 2023
Entity Information [Line Items]
Document Type	8-K
Document Period End Date	Apr. 24, 2023
Entity Registrant Name	Heartland Financial USA, Inc.
Entity File Number	001-15393
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	42-1405748
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80202
City Area Code	(303)
Local Phone Number	285-9200
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Amendment Flag	false
Entity Central Index Key	0000920112
Entity Address, Address Line Two	Suite 1800
Entity Address, City or Town	Denver,
Entity Address, Address Line One	1800 Larimer Street
Common Stock, par value $1.00 per share
Entity Information [Line Items]
Title of 12(b) Security	Common Stock, par value $1.00 per share
Trading Symbol	HTLF
Security Exchange Name	NASDAQ
Depositary Shares (each representing 1/400th interest in a share of 7.00% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series E)
Entity Information [Line Items]
Title of 12(b) Security	Depositary Shares (each representing 1/400th interest in a share of 7.00% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series E)
Trading Symbol	HTLFP
Security Exchange Name	NASDAQ