Heartland Financial (HTLF) in Dubuque, Iowa, reported that third-quarter earnings more than tripled from a year earlier.
The $4.6 billion-asset company’s earnings rose 270% from a year earlier, to $12.6 million, or 75 cents a share.
Loan servicing income and gains on the sale of loans contributed significantly to noninterest income, the company said in a press release. Noninterest income more than doubled from a year earlier, to $29.8 million. Residential mortgage loan servicing income more than quadrupled from a year earlier, to $2.5 million. Gains on the sale of loans rose 331% from a year earlier, to $13.8 million.
Gains on securities also contributed to noninterest income. These gains rose 150% from a year earlier, to $5.2 million, as volatility in the bond market provided opportunities to swap securities from one sector to another without significantly changing the portfolio’s duration.
Heartland recorded a $502,000 credit to its loan-loss provision after setting aside $7.7 million a year earlier.
Noninterest expenses rose 48% from a year earlier, to $47.2 million. Salaries and employee benefits rose more than 52% from a year earlier, to $27.1 million, while professional fees increased more than 35%, to $4.2 million.
Heartland’s net interest margin compressed 30 basis points from a year earlier, to 3.84%, as yields on securities and loan portfolios fell at a greater pace than repricing for deposits and other borrowings.
During the third quarter, Heartland
