Heartland Financial profit rises

DUBUQUE - Higher second-quarter earnings were reported by Heartland Financial Corp., which is buying a bank in southwestern Wisconsin.

The corporate parent of Dubuque Bank and Trust Co. posted net income of $14 million, or 77 cents per share, for the three months that ended on June 30, up from $10.2 million, or 54 cents per share in the second quarter of 2011.

Net income available to common shareholders was $12.9 million in the second quarter, up sharply from $8.9 million in the same quarter last year.

Net interest margin slipped to 4.05 percent in the most recent quarter, from 4.23 percent in the same quarter of 2011.

Net income for the six months that ended on June 30 was $26.8 million, or $1.48 per share,  2012, compared with $14.4 million, or 71 cents per share, in the first six months of 2011. Net income available to common shareholders was $24.8 million in the first six months of 2012, compared with $14.4 million in the first half of 2011.

Net interest margin slid to 4.14 percent in the most recent six months from 421 percent in the same period of 2011.

Total assets were $4.43 billion on June 30, an increase of $122.6 million since Dec. 31, 2011, with $114.8 million of the growth occurring in the second quarter. Securities represented 30 percent of total assets on June 30, compared with 31 percent on Dec. 31, 2011.

Nonperforming loans at Heartland Financial were $44.8 million or 1.71 percent of total loans and leases on June 30, compared with  $57.4 million or 2.31 percent of total loans and leases on Dec. 31, 2011.

The nonperforming loans, involving nine borrowers, are primarily concentrated in Heartland's banks serving the Western states, with $6.8 million originated by Arizona Bank & Trust, $3.4 million originated by Rocky Mountain Bank, $4.2 million originated by Wisconsin Bank & Trust (formerly known as Wisconsin Community Bank), $2.5 million originated by New Mexico Bank & Trust, and $1.8 million originated by Galena State Bank and Trust Co.

Separately, Heartland Financial on Thursday said it has agreed to buy First Shares Inc., corporate  parent of First National Bank of Platteville in Wisconsin. Under the terms of the agreement, Heartland Financial will pay $11 million with 60 percent in stock and 40 percent in cash with the aggregate purchase price to be based upon the financial position of First Shares before the closing.

First National Bank will be merged into Heartland's Wisconsin Bank & Trust subsidiary. The deal is expected to be a tax-free exchange.