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Heartland Financial Usa (HTLF)
NASDAQ:HTLF
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Heartland Financial USA
(NASDAQ:HTLF)
68Neutral
Heartland Financial USA (HTLF) vs. S&P 500 (SPY)
Market Cap
$2.86B
Dividend Yield1.85%
Average Volume (3M)237.74K
Price to Earnings (P/E)37.4
Beta (1Y)1.05
Revenue Growth-2.94%
EPS Growth-62.30%
CountryUS
Employees1,970
SectorFinancial
Sector Strength87
IndustryBanking
Share Statistics
EPS (TTM)1.78
Shares Outstanding42,885,498
10 Day Avg. Volume279,269
30 Day Avg. Volume237,738
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)4.92
Price to Cash Flow (P/CF)5.20
P/FCF Ratio3.50
Enterprise Value/Market Cap1.14
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit5.88
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$79.00Price Target Upside22.16% Upside
Rating ConsensusHold
Number of Analyst Covering1
Heartland Financial USA Business Overview & Revenue Model
Company DescriptionHeartland Financial USA, Inc. (HTLF) is a diversified financial services company headquartered in Dubuque, Iowa. The company operates through its community bank subsidiaries across several states in the Midwest, Southwest, and Western United States. HTLF offers a wide range of financial products and services, including personal and commercial banking, wealth management, investment services, and insurance solutions. The company focuses on providing personalized, relationship-based services to meet the unique needs of its customers.
How the Company Makes MoneyHeartland Financial USA, Inc. generates revenue primarily through interest income and non-interest income. Interest income is derived from loans and leases, such as commercial and residential mortgages, consumer loans, and commercial real estate loans, which are offered to individuals and businesses. Non-interest income comes from fees and services related to wealth management, investment advisory, insurance products, and transaction services such as debit and credit card processing. HTLF's earnings are further supported by its strategic partnerships with financial service providers and its ability to leverage economies of scale across its network of community banks. Additionally, the company's focus on building strong customer relationships and providing tailored financial solutions contributes to customer retention and revenue stability.
Heartland Financial USA Financial Statement Overview
Summary
Heartland Financial USA displays a mixed financial performance. While the income statement highlights steady revenue levels, profit margins have tightened, indicating cost pressures. The balance sheet suggests a conservative debt profile but weakened returns on equity, possibly due to reduced profitability. Cash flows remain strong but have shown a decline in free cash flow, requiring attention. Overall, the company maintains financial stability but faces challenges in profitability and cash flow growth.Income Statement
The income statement for Heartland Financial USA shows a stable gross profit margin of around 100%, given the alignment of gross profit and total revenue. Net profit margin for TTM is 9.54%, which is lower than previous years, indicating some pressure on profitability. Revenue growth is inconsistent, with a decline of 23.92% from 2022 to 2023, followed by an increase in the latest TTM period. EBIT margins have decreased over time, which could point to rising operational costs or reduced operational efficiency.70
Positive
Balance Sheet
The balance sheet reflects a moderate debt-to-equity ratio of 0.11 for the TTM, indicating a conservative leverage position. ROE has dropped significantly in the TTM to 3.98%, down from a higher 10.98% in 2022, reflecting reduced profitability relative to equity. The equity ratio is 11.72% for the TTM, suggesting a solid, though reduced, capital structure compared to past years.65
Positive
Cash Flow
Heartland Financial USA's cash flow statement shows a decrease in free cash flow by 33.77% for the TTM compared to 2022, pointing to decreased cash generation. The operating cash flow to net income ratio is 2.16 for the TTM, indicating strong cash earnings relative to reported net income. The free cash flow to net income ratio for the TTM is 2.12, suggesting efficient cash conversion from earnings.75
Positive
| Breakdown | ||||
| Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 553.28M | 727.55M | 688.91M | 606.92M | 569.36M | Gross Profit |
| 553.28M | 727.55M | 688.91M | 606.92M | 569.36M | EBIT |
| 135.30M | 344.17M | 275.26M | 173.99M | 184.12M | EBITDA |
| 0.00 | 292.23M | 302.15M | 201.28M | 214.92M | Net Income Common Stockholders |
| 79.92M | 212.18M | 219.92M | 137.94M | 149.13M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 323.01M | 2.11B | 438.49M | 341.03M | 382.30M | Total Assets |
| 19.41B | 20.24B | 19.27B | 17.91B | 13.21B | Total Debt |
| 1.02B | 747.87M | 503.67M | 624.91M | 458.40M | Net Debt |
| 699.73M | 383.04M | 65.18M | 283.88M | 76.10M | Total Liabilities |
| 17.48B | 18.51B | 17.09B | 15.83B | 11.63B | Stockholders Equity |
| 1.93B | 1.74B | 2.18B | 2.08B | 1.58B |
| Cash Flow | Free Cash Flow | |||
| 273.25M | 373.20M | 308.83M | 171.83M | 143.25M | Operating Cash Flow |
| 280.31M | 388.01M | 326.04M | 190.37M | 161.17M | Investing Cash Flow |
| 802.20M | -1.81B | -1.53B | -2.30B | -573.97M | Financing Cash Flow |
| -1.12B | 1.35B | 1.30B | 2.07B | 517.90M |
Heartland Financial USA Technical Analysis
Neutral
64.67
Price Trends
64.77
Negative
61.52
Positive
53.57
Positive
Market Momentum
0.82
Negative
49.95
Neutral
51.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HTLF, the sentiment is Neutral. The current price of 64.67 is above the 20-day moving average (MA) of 64.12, below the 50-day MA of 64.77, and above the 200-day MA of 53.57, indicating a neutral trend. The MACD of 0.82 indicates Negative momentum. The RSI at 49.95 is Neutral, neither overbought nor oversold. The STOCH value of 51.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HTLF.
Heartland Financial USA Risk Analysis
Heartland Financial USA disclosed 47 risk factors in its most recent earnings report. Heartland Financial USA reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Heartland Financial USA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $4.38B | 22.98 | 6.63% | 3.15% | 8.10% | 6.95% | |
68 Neutral | $2.86B | 37.40 | 3.98% | 1.85% | -2.94% | -62.30% | |
68 Neutral | $2.77B | 9.67 | 10.60% | 4.03% | 21.45% | 5.62% | |
66 Neutral | $2.79B | 12.83 | 6.63% | 6.95% | -6.80% | -15.66% | |
64 Neutral | $12.61B | 9.78 | 8.01% | 16985.69% | 12.73% | -4.58% | |
58 Neutral | $551.68M | 12.16 | -5.43% | 7.83% | -18.44% | -157.94% |
* Financial Sector Average
Performance Comparison
HTLF
Heartland Financial USA
64.67
21.99
51.52%
FIBK
First Interstate Bancsystem
27.05
0.54
2.04%
FULT
Fulton Financial
17.36
1.02
6.24%
GBCI
Glacier Bancorp
41.91
4.85
13.09%
WASH
Washington Bancorp
28.62
3.98
16.15%
Heartland Financial USA Earnings Call Summary
Earnings Call Date:Jan 28, 2025
(Q4-2023)
| % Change Since: -3.41%|
Next Earnings Date:Apr 28, 2025
Earnings Call Sentiment Neutral
HTLF's earnings call highlighted significant strategic repositioning with improvements in net interest income, margin growth, and customer deposit growth, despite reporting a quarterly loss due to repositioning efforts and an increase in nonperforming assets. The strategic initiatives under HTLF 3.0 are poised to drive future growth, though current challenges in asset quality and consumer loans remain.Q4-2023 Updates
Positive Updates
Dividend Increase and Stockholder Benefits
HTLF's Board of Directors approved a quarterly cash dividend of $0.30 per share on common stock and $175 for Series E preferred stock. The tangible book value per common share increased by 19% to $28.77 from 2022.
Balance Sheet Repositioning
HTLF sold investment securities with proceeds totaling $865 million, resulting in a pretax loss of $140 million. The proceeds were used to repay high-cost wholesale deposits and short-term borrowings, improving net interest margin and capital position.
Net Interest Income and Margin Growth
Net interest income for Q4 was $156 million, a 7% increase from the previous quarter. The net interest margin rose by 34 basis points to 3.52%.
Commercial Loan Growth
In Q4, commercial and agricultural loans grew by $224 million or 2%. For the year, these loans grew by $719 million or 7%.
Customer Deposit Growth
Customer deposits increased by $59 million from the previous quarter, marking the second consecutive quarter of growth. Average customer deposits rose by $271 million or 2%.
Credit Quality and Low Delinquencies
The delinquency ratio decreased to 9 basis points, the lowest in 2023, and net charge-offs were minimal at $392,000 or 1 basis point of total average loans.
Negative Updates
Quarterly Loss Due to Repositioning
HTLF reported a $72.4 million loss for the quarter to common stockholders, with an EPS of negative $1.69, primarily due to balance sheet repositioning losses.
Nonperforming Assets Increase
Nonperforming assets increased to 57 basis points, driven by the downgrade of a Midwest manufacturing customer experiencing cash flow challenges.
Decrease in Total Assets
Total assets decreased by $718 million or 4% from the linked quarter, primarily due to the securities sold to repay wholesale funding.
Consumer Loan Portfolio Decline
The consumer loan portfolio decreased by $12 million or 2% in Q4, and by $14 million or 3% for the year.
Company Guidance
During the HTLF earnings call for the fourth quarter of 2023, the company's management provided detailed guidance and metrics that highlight their strategic initiatives and financial performance. HTLF's board approved a quarterly cash dividend of $0.30 per share on common stock, and a dividend of $175 for Series E preferred stock, translating to $0.4375 per depository share. The company's tangible book value per common share increased by 19% from 2022, reaching $28.77. They reported a $72.4 million loss for the quarter, primarily due to a $140 million pre-tax loss from selling investment securities worth $865 million to repay high-cost deposits and borrowings. Despite this, adjusted earnings for the quarter were $45.6 million, with an EPS of $1.06, excluding losses from balance sheet repositioning and other expenses. The net interest margin rose by 34 basis points to 3.52%, with net interest income up to $156 million for the quarter. The company saw a 2% growth in commercial and ag loans in Q4, totaling $224 million, and customer deposits grew by $59 million, marking the second consecutive quarter of growth. Nonperforming assets increased to 57 basis points, although net charge-offs and delinquencies remained low. The company expects loan growth of 6-8% in 2024, with deposit growth of 5-7%, and aims to maintain a stable net interest margin around 3.5%, despite potential economic challenges.Heartland Financial USA Corporate Events
Dividends
Heartland Financial USA Announces Quarterly Cash Dividend
Positive
Jan 2, 2025
Heartland Financial USA, Inc. announced a quarterly cash dividend of $0.30 per share, payable on January 27, 2025, to stockholders of record on January 14, 2025. This decision reflects the company’s long-standing tradition of maintaining or increasing its dividend for over 40 years, showcasing HTLF’s stable financial performance and commitment to shareholder value.
Executive/Board ChangesM&A Transactions
Heartland Financial USA Mitigates Tax Liabilities in Merger
Neutral
Dec 30, 2024
Heartland Financial USA has entered into repayment agreements with certain executive officers as part of a merger arrangement with UMB Financial Corporation and Blue Sky Merger Sub Inc. These agreements aim to mitigate potential tax liabilities related to excess parachute payments, requiring executives to release claims and adhere to confidentiality and nonsolicitation agreements. The agreements involve accelerating portions of bonuses and severance payments for executives Bruce Lee, Kevin Thompson, Jay Kim, and Kevin Quinn, with conditions for repayment if certain employment or merger conditions are not met.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.