DUBUQUE, Iowa---Heartland Financial USA, Inc. (NASDAQ:HTLF - News):

		Quarter Ended December 31,								Year Ended December 31,
		2007				2006				2007				2006
Net income (in millions)		$	6.8			$	7.5			$	25.6			$	25.1
Income from continuing operations (in millions)			6.8				7.5				24.0				24.3
Diluted earnings per share			0.41				0.45				1.54				1.50
Diluted earnings per share from continuing operations			0.41				0.44				1.44				1.45
Return on average assets			0.83	%			0.98	%			0.81	%			0.86	%
Return on average equity			11.86				14.62				11.88				12.86
Net interest margin			3.87				4.04				3.95				4.17

For 2007, a difficult year for most banks and the economy in general, Heartland achieved an increase in total earnings and earnings per share. The Company turned in a good performance with growth in loans, deposits and noninterest income while controlling noninterest expense.-- Lynn B. Fuller, chairman, president and chief executive officer, Heartland Financial USA, Inc.

Heartland Financial USA, Inc. (NASDAQ:HTLF - News) today reported earnings for the fourth quarter of 2007. Net income was $6.8 million, or $0.41 per diluted share, for the quarter ended December 31, 2007, compared to $7.5 million, or $0.45 per diluted share, earned during the fourth quarter of 2006. Return on average equity was 11.86 percent and return on average assets was 0.83 percent for the fourth quarter of 2007, compared to 14.62 percent and 0.98 percent, respectively, for the same quarter in 2006.

Net income for the year 2007 was $25.6 million, or $1.54 per diluted share, an increase of $531,000 or 2 percent over net income of $25.1 million, or $1.50 per diluted share, recorded during 2006. Return on average equity was 11.88 percent and return on average assets was 0.81 percent for 2007, compared to 12.86 percent and 0.86 percent, respectively, for 2006. During 2006, a pre-tax judgment of $2.4 million was recorded as noninterest expense, while a $286,000 award under a counterclaim was recorded as a loan loss recovery. The net after-tax effect to net income for this one-time event was $1.3 million. Exclusive of this expense, Heartlands net income for 2006 was $26.4 million, or $1.58 per diluted share. Because of the non-recurring nature of this expense, management believes that this pro-forma presentation can help investors understand Heartlands financial performance for 2006.

Lynn B. Fuller, Heartlands chairman, president and chief executive officer stated, For 2007, a difficult year for most banks and the economy in general, Heartland achieved an increase in total earnings and earnings per share. The Company turned in a good performance with growth in loans, deposits and noninterest income while controlling noninterest expense.

The sale of Rocky Mountain Banks branch banking office in Broadus, Montana, was completed on June 22, 2007. Included in the sale were $20.9 million of loans and $30.2 million of deposits. The results of operations of the branch are reflected on the income statement as discontinued operations for the prior periods reported. Also included on the income statement as discontinued operations for the prior periods are the results of operations of ULTEA, Inc., Heartlands fleet leasing subsidiary, which was sold to ALD Automotive on December 22, 2006. During 2007, income from discontinued operations included a $2.4 million pre-tax gain recorded as a result of the sale of the Broadus branch.

Income from continuing operations was $6.8 million, or $0.41 per diluted share, during the fourth quarter of 2007 compared to $7.5 million, or $0.44 per diluted share, during the fourth quarter of 2006. This decrease in earnings from continuing operations was primarily a result of a higher provision for loan losses, which was $3.3 million during the fourth quarter of 2007 compared to a reversal of $157,000 during the fourth quarter of 2006. For the year 2007, income from continuing operations was $24.0 million, or $1.44 per diluted share, compared to $24.3 million, or $1.45 per diluted share, during 2006. Exclusive of the $1.3 million one-time expense associated with the court case mentioned earlier, Heartlands net income from continuing operations for 2006 was $25.6 million, or $1.53 per diluted share. Growth in net interest income and noninterest income during 2007 partially offset the additional provision for loan losses and noninterest expenses recorded.

Net Interest Margin Constrained; Net Interest Income Grows

Net interest margin, expressed as a percentage of average earning assets, was 3.87 percent during the fourth quarter of 2007 compared to 4.04 percent for the fourth quarter of 2006 and 3.87 percent for the third quarter of 2007. Affecting the net interest margin throughout 2007 was the impact of foregone interest on Heartlands nonperforming loans which had increased to $32 million by year-end. Additionally, early in the third quarter of 2007, a $20.5 million investment was made in bank owned life insurance upon which interest expense associated with the funding of this investment affects net interest margin while the corresponding earnings on this investment is recorded as noninterest income.

Fuller said, Net interest margin, which gradually fell through much of last year, has leveled off at 3.87 percent due to managed pricing of loans and deposits. Given the asset sensitive posture of Heartlands balance sheet, the most recent 75 basis point rate cut by the Fed and the possibility of additional rate cuts, Heartland will be challenged to maintain its net interest margin at the current level. We will continue to proactively manage pricing in concert with changes in market interest rates.

Net interest income on a tax-equivalent basis totaled $28.4 million during the fourth quarter of 2007, an increase of $724,000 or 3 percent from the $27.7 million recorded during the fourth quarter of 2006. For the year 2007, net interest income on a tax-equivalent basis was $113.0 million, an increase of $4.7 million or 4 percent from the $108.3 million recorded during 2006. Contributing to these increases was the $194.2 million or 7 percent growth in average earning assets during the comparable quarterly periods and the $266.3 million or 10 percent growth in average earning assets during the year 2007 compared to 2006.

On a tax-equivalent basis, interest income in the fourth quarter of 2007 totaled $54.7 million compared to $52.2 million in the fourth quarter of 2006, an increase of $2.5 million or 5 percent. For the year 2007, interest income on a tax-equivalent basis increased $25.2 million or 13 percent over 2006. More than half of the loans in Heartlands commercial and agricultural loan portfolios are floating rate loans, thus changes in the national prime rate impact interest income more quickly than if there were more fixed rate loans.

Interest expense for the fourth quarter of 2007 was $26.2 million compared to $24.5 million in the fourth quarter of 2006, an increase of $1.7 million or 7 percent. On a yearly comparative basis, interest expense increased $20.5 million or 24 percent. Approximately 77 percent of Heartlands certificate of deposit accounts will mature within the next twelve months at a weighted average rate of 4.87 percent.

Noninterest Income Rises; Noninterest Expense Moderates Despite Investments in New Facilities

Noninterest income increased by $389,000 or 5 percent during the fourth quarter of 2007 compared to the same quarter in 2006. The categories experiencing the largest increases for the comparative quarters were brokerage and insurance commissions and gains on sale of loans. During the fourth quarter of 2007, Heartland sold its credit card portfolio, resulting in a gain of $1.0 million. The increases in these categories were partially offset by losses on trading account securities and the amortization of investments made during the third quarter of 2007 in limited liability companies that own certified historic structures for which historic rehabilitation tax credits apply. For the year 2007, noninterest income increased $2.5 million or 9 percent over 2006, primarily from increased trust fees, brokerage and insurance commissions, gains on sale of loans and income on bank owned life insurance.

Fuller stated, We are pleased that income from our Wealth Management Group and brokerage unit made healthy contributions in 2007. These businesses grew their revenue by 11% and 66%, respectively. The sale of our credit card portfolio in the fourth quarter of 2007 also added a one-time gain in this category, resulting in pre-tax revenue of $1.0 million.

For the fourth quarter of 2007, noninterest expense increased $268,000 or 1 percent in comparison with the same period in 2006. The largest component of noninterest expense, salaries and employee benefits, decreased $630,000 or 5 percent during the fourth quarter of 2007 in comparison to the fourth quarter of 2006. This reduction in salaries and employee benefits expense was primarily related to a $2.3 million adjustment for lower employer incentive payouts and employer contributions to the companys retirement plan. For the year 2007, noninterest expense increased $3.4 million or 4 percent when compared to 2006. Exclusive of the $2.4 million judgment recorded during 2006, noninterest expense increased $5.8 million or 6 percent in comparison to 2006. The largest contributor to this increase was salaries and employee benefits which grew by $3.6 million or 7 percent during the yearly comparative period, primarily due to branch expansions, including the formation of Summit Bank & Trust and Minnesota Bank & Trust, and additional staffing at Heartlands operations center to provide support services to the growing number of bank subsidiaries. Total full-time equivalent employees increased to 982 at December 31, 2007, from 959 at December 31, 2006.

Recapping Heartlands expansion efforts, Fuller said, In 2007, we opened five new branch offices, relocated one office and initiated the organization of our newest de novo bank charter, Minnesota Bank & Trust. Looking into 2008, we plan to continue to make strategic investments in future growth by expanding our banking franchise in existing markets, albeit at a somewhat slower pace.

Referring to the new bank being formed in Minnesota, Fuller said, The organization of Heartlands tenth independent charter is proceeding very well. Applications have been filed with regulatory agencies and we are looking forward to a second quarter grand opening. In the meantime, we have opened a loan production office now to gather momentum so the new bank can hit the ground running.

Heartlands effective tax rate was 22.9 percent for the fourth quarter of 2007 compared to 36.9 percent for the fourth quarter of 2006. On a yearly comparative basis, Heartlands effective tax rate was 29.0 percent during 2007 and 33.3 percent during 2006. The decrease in Heartlands effective tax rate during the fourth quarter of 2007 resulted from $1.3 million in projected federal rehabilitation tax credits associated with Dubuque Bank and Trust Companys newly acquired 99.9 percent ownership interest in two limited liability companies that own certified historic structures.

Heartlands effective tax rate is also affected by the level of tax-exempt interest income which, as a percentage of pre-tax income, was 19.29 percent during the fourth quarter of 2007 compared to 14.11 percent during the same quarter of 2006. For the years 2007 and 2006, tax-exempt income as a percentage of pre-tax income was 19.00 percent and 17.71 percent, respectively. The tax-equivalent adjustment for this tax-exempt interest income was $909,000 during the fourth quarter of 2007 compared to $907,000 during the same quarter in 2006. For the yearly comparative period, the tax-equivalent adjustment for tax-exempt interest income was $3.7 million for 2007 and $3.6 million for 2006.

Solid Loan Growth; Slower Growth in Deposits

At December 31, 2007, total assets had increased $205.9 million or 7 percent since year-end 2006, primarily because of loan growth. Despite the loss of $20.9 million in loans as a result of the sale of the Broadus branch of Rocky Mountain Bank in the second quarter of 2007, total loans and leases grew to $2.3 billion at December 31, 2007, an increase of $132.3 million or 6 percent since year-end 2006. The growth in loans was balanced between Heartlands Midwestern and Western markets. The Heartland subsidiary banks experiencing notable loan growth this year were Dubuque Bank and Trust Company, New Mexico Bank & Trust, Rocky Mountain Bank and Summit Bank & Trust. The commercial and commercial real estate loan category grew by $148.9 million or 10 percent. Included in this change was the reclassification of $28.3 million of commercial real estate loans at Wisconsin Community Bank from the loans held for sale portfolio to the loans held to maturity portfolio as management intends to hold those loans in its portfolio.

Fuller commented, While year over year loan growth was good, we saw loan demand slow as the year progressed. Despite this, we anticipate 2008 will be a reasonably good year in loan production, though we are focusing much more attention on controlling our existing nonperformers.

Despite the loss of $30.2 million in deposits as a result of the Broadus branch sale, total deposits grew to $2.38 billion at December 31, 2007, an increase of $64.6 million or 3 percent since year-end 2006. The sale of the Broadus branch of Rocky Mountain Bank included deposits of $30.2 million. Growth in deposits was weighted more heavily in Heartlands Midwestern markets. Demand deposits experienced a $10.0 million or 3 percent increase and savings deposit balances experienced a $32.1 million or 4 percent increase despite the $3.4 million in demand deposits and $10.6 million in savings deposits lost as part of the Broadus branch sale. The increase in savings deposits primarily resulted from the promotion of a new money market product. Time deposits, excluding brokered time deposits, increased $54.1 million or 5 percent with a majority of the growth at the Midwestern banks where depositors tend to favor the term deposit product. Included in the Broadus branch sale were $16.2 million in time deposits. Brokered time deposit balances decreased $31.6 million or 31 percent during the year. At December 31, 2007, brokered time deposits totaled $69.0 million or 3 percent of total deposits compared to $100.6 million or 4 percent of total deposits at year-end 2006.

Increase in Nonperforming Loans

The allowance for loan and lease losses at December 31, 2007, was 1.45 percent of loans and 104 percent of nonperforming loans, compared to 1.40 percent of loans and 356 percent of nonperforming loans at December 31, 2006, and 1.38 percent of loans and 104 percent of nonperforming loans at September 30, 2007. Additions to the allowance for loan and lease losses were primarily driven by the continued softening of the economy and reduced real estate values, particularly in the Phoenix market. Nonperforming loans were $31.8 million or 1.40 percent of total loans and leases at December 31, 2007, compared to $8.4 million or 0.39 percent of total loans and leases at December 31, 2006, and $30.4 million or 1.33 percent of total loans and leases at September 30, 2007. The majority of the $23.4 million increase in nonperforming loans from December 31, 2006, occurred during the second and third quarters of 2007. Over half of this increase was attributable to nonperforming loans at Wisconsin Community Bank totaling $10.2 million, of which $2.5 million in outstanding balances is covered by government guarantees, and nonperforming loans at Arizona Bank & Trust totaling $5.3 million. The remaining increase was distributed among the other bank subsidiaries and related to a few loan customers. Net charge-offs during the fourth quarter of 2007 were $1.7 million compared to $1.9 million, $2.9 million and $362,000 during the third, second and first quarters of 2007, respectively. Management monitors the loan portfolio of each bank subsidiary and, at this point, does not feel that the increase in nonperforming loans is any indication of a systemic problem but is more likely a result of the continuing shift in the economy in some of Heartlands markets. With all the recent attention given to subprime lending, Heartland feels it is important to inform investors that its bank subsidiaries have not been active in the origination of subprime loans. Because of the net realizable value of collateral, guarantees and other factors, management expects losses on Heartlands nonperforming loans during 2008 to be below the amounts experienced during 2007.

Fuller concluded, A great deal of time and talent is now focused on reducing the level of our nonperforming loans to unlock the earnings potential as those dollars are converted back into earning assets. Other steps we are taking this year to enhance the long-term value of our financial network include programs to grow core demand deposits, as well as, aggressive expense management.

Conference Call Details

Heartland will host a conference call for investors at 3:00 p.m. CST today. To participate, dial 800-218-0204 at least five minutes before start time, or log onto www.htlf.com. If you are unable to participate on the call, a replay will be available through February 4, 2008, by dialing 800-405-2236, code 11106765, or by logging onto www.htlf.com.

About Heartland Financial USA, Inc.:

Heartland Financial USA, Inc. is a $3.3 billion diversified financial services company providing banking, mortgage, wealth management, insurance and consumer finance services to individuals and businesses. The Company currently has 59 banking locations in 40 communities in Iowa, Illinois, Wisconsin, New Mexico, Arizona, Montana and Colorado. Additional information about Heartland Financial USA, Inc. is available at www.htlf.com.

Safe Harbor Statement

This release, and future oral and written statements of the Company and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to Heartlands financial condition, results of operations, plans, objectives, future performance and business. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the Companys management and on information currently available to management, are generally identifiable by the use of words such as believe, expect, anticipate, plan, intend, estimate, may, will, would, could, should or similar expressions. Additionally, all statements in this release, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.

A number of factors, many of which are beyond the ability of the Company to control or predict, could cause actual results to differ materially from those in its forward-looking statements. These factors include, among others, the following: (i) the strength of the local and national economy; (ii) the economic impact of past and any future terrorist threats and attacks and any acts of war, (iii) changes in state and federal laws, regulations and governmental policies concerning the Companys general business; (iv) changes in interest rates and prepayment rates of the Companys assets; (v) increased competition in the financial services sector and the inability to attract new customers; (vi) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (vii) the loss of key executives or employees; (viii) changes in consumer spending; (ix) unexpected results of acquisitions; (x) unexpected outcomes of existing or new litigation involving the Company; and (xi) changes in accounting policies and practices. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Additional information concerning the Company and its business, including other factors that could materially affect the Companys financial results, is included in the Risk Factors section of its Annual Report on Form 10-K and in its other filings with the Securities and Exchange Commission.

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
		For the Quarters Ended								For the Years Ended
		12/31/2007				12/31/2006				12/31/2007				12/31/2006
Interest Income
Interest and fees on loans and leases		$	46,083			$	44,738			$	186,795			$	166,588
Interest on securities and other:
Taxable			5,927				5,128				21,937				17,593
Nontaxable			1,665				1,445				6,079				5,783
Interest on federal funds sold			77				-				387				164
Interest on deposits in other financial institutions			13				6				33				22
Total Interest Income			53,765				51,317				215,231				190,150
Interest Expense
Interest on deposits			19,540				18,073				77,865				62,530
Interest on short-term borrowings			2,748				2,952				13,293				9,828
Interest on other borrowings			3,971				3,508				14,733				13,051
Total Interest Expense			26,259				24,533				105,891				85,409
Net Interest Income			27,506				26,784				109,340				104,741
Provision for loan and lease losses			3,304				(157	)			10,073				3,883
Net Interest Income After Provision for Loan and Lease Losses			24,202				26,941				99,267				100,858
Noninterest Income
Service charges and fees			2,821				2,704				11,108				11,058
Loan servicing income			1,273				1,091				4,376				4,279
Trust fees			1,788				1,926				8,053				7,258
Brokerage and insurance commissions			939				532				3,097				1,871
Securities gains, net			38				125				341				553
Gain (loss) on trading account securities			(185	)			80				(105	)			141
Impairment loss on equity securities			-				-				-				(76	)
Gains on sale of loans			1,527				611				3,578				2,289
Income on bank owned life insurance			565				382				1,777				1,151
Other noninterest income			(676	)			250				(264	)			920
Total Noninterest Income			8,090				7,701				31,961				29,444
Noninterest Expense
Salaries and employee benefits			11,888				12,518				54,568				50,975
Occupancy			1,961				1,918				7,902				7,291
Furniture and equipment			1,848				1,737				6,972				6,724
Outside services			2,544				2,450				9,555				9,404
Advertising			948				1,030				3,642				3,893
Other intangibles amortization			240				249				892				942
Other noninterest expenses			4,105				3,364				14,326				15,220
Total Noninterest Expense			23,534				23,266				97,857				94,449
Income Before Income Taxes			8,758				11,376				33,371				35,853
Income taxes			2,006				3,913				9,409				11,578
Income From Continuing Operations			6,752				7,463				23,962				24,275
Discontinued Operations
Income from operations of discontinued operations(1)			-				567				2,756				1,758
Income taxes			-				497				1,085				931
Income From Discontinued Operations			-				70				1,671				827
Net Income		$	6,752			$	7,533			$	25,633			$	25,102
Earnings per common share-basic		$	.41			$	.46			$	1.56			$	1.52
Earnings per common share-diluted		$	.41			$	.45			$	1.54			$	1.50
Earnings per common share from continuing operations- basic		$	.41			$	.45			$	1.45			$	1.47
Earnings per common share from continuing operations- diluted		$	.41			$	.44			$	1.44			$	1.45
Weighted average shares outstanding-basic			16,481,854				16,531,998				16,477,684				16,507,960
Weighted average shares outstanding-diluted			16,574,540				16,784,656				16,596,806				16,734,989
(1)Includes a gain of $2,442 on the sale of Rocky Mountain Banks Broadus branch during the second quarter of 2007

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
		For the Quarters Ended
		12/31/2007				9/30/2007				6/30/2007				3/31/2007			12/31/2006
Interest Income
Interest and fees on loans and leases		$	46,083			$	47,406			$	47,748			$	45,558		$	44,738
Interest on securities and other:
Taxable			5,927				5,446				5,267				5,297			5,128
Nontaxable			1,665				1,513				1,443				1,458			1,445
Interest on federal funds sold			77				310				-				-			-
Interest on deposits in other financial institutions			13				2				8				10			6
Total Interest Income			53,765				54,677				54,466				52,323			51,317
Interest Expense
Interest on deposits			19,540				20,477				19,550				18,298			18,073
Interest on short-term borrowings			2,748				2,764				3,970				3,811			2,952
Interest on other borrowings			3,971				4,199				3,240				3,323			3,508
Total Interest Expense			26,259				27,440				26,760				25,432			24,533
Net Interest Income			27,506				27,237				27,706				26,891			26,784
Provision for loan and lease losses			3,304				575				4,268				1,926			(157	)
Net Interest Income After Provision for Loan and Lease Losses			24,202				26,662				23,438				24,965			26,941
Noninterest Income
Service charges and fees			2,821				2,861				2,855				2,571			2,704
Loan servicing income			1,273				1,068				1,040				995			1,091
Trust fees			1,788				2,089				2,055				2,121			1,926
Brokerage and insurance commissions			939				820				845				493			532
Securities gains, net			38				31				147				125			125
Gain (loss) on trading account securities			(185	)			(7	)			46				41			80
Impairment loss on equity securities			-				-				-				-			-
Gains on sale of loans			1,527				604				856				591			611
Income on bank owned life insurance			565				595				317				300			382
Other noninterest income			(676	)			(145	)			(68	)			374			250
Total Noninterest Income			8,090				7,916				8,093				7,611			7,701
Noninterest Expense
Salaries and employee benefits			11,888				14,301				14,210				14,169			12,518
Occupancy			1,961				2,004				2,010				1,927			1,918
Furniture and equipment			1,848				1,669				1,779				1,676			1,737
Outside services			2,544				2,374				2,368				2,269			2,450
Advertising			948				886				1,039				769			1,030
Other intangibles amortization			240				241				192				219			249
Other noninterest expenses			4,105				3,272				3,331				3,367			3,364
Total Noninterest Expense			23,534				24,747				24,929				24,396			23,266
Income Before Income Taxes			8,758				9,831				6,602				8,180			11,376
Income taxes			2,006				2,906				1,965				2,532			3,913
Income From Continuing Operations			6,752				6,925				4,637				5,648			7,463
Discontinued Operations
Income from operations of discontinued operations(1)			-				-				2,565				191			567
Income taxes			-				-				1,017				68			497
Income From Discontinued Operations			-				-				1,548				123			70
Net Income		$	6,752			$	6,925			$	6,185			$	5,771		$	7,533
Earnings per common share-basic		$	.41			$	0.42			$	.38			$	.35		$	.46
Earnings per common share-diluted		$	.41			$	0.42			$	.37			$	.34		$	.45
Earnings per common share from continuing operations-basic		$	.41			$	0.42			$	.28			$	.34		$	.45
Earnings per common share from continuing operations-diluted		$	.41			$	0.42			$	.28			$	.34		$	.44
Weighted average shares outstanding-basic			16,481,854				16,447,270				16,451,031				16,542,876			16,531,998
Weighted average shares outstanding-diluted			16,574,540				16,543,635				16,644,286				16,760,688			16,784,656
(1)Includes a gain of $2,442 on the sale of Rocky Mountain Banks Broadus branch during the second quarter of 2007

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
		As Of
		12/31/2007				9/30/2007				6/30/2007				3/31/2007				12/31/2006
Assets
Cash and cash equivalents		$	46,832			$	31,591			$	35,721			$	62,232			$	49,143
Securities			689,949				648,337				590,194				587,803				617,040
Loans held for sale			12,679				16,267				22,346				42,644				50,381
Loans and leases:
Held to maturity			2,280,167				2,274,119				2,298,256				2,224,097				2,147,845
Allowance for loan and lease losses			(32,993	)			(31,438	)			(32,738	)			(31,545	)			(29,981	)
Loans and leases, net			2,247,174				2,242,681				2,265,518				2,192,552				2,117,864
Premises, furniture and equipment, net			120,285				119,461				115,885				112,951				108,567
Goodwill			40,207				40,207				40,207				40,207				39,817
Other intangible assets, net			8,369				8,378				8,530				8,997				9,010
Cash surrender value on life insurance			55,532				54,936				33,810				33,698				33,371
Assets of discontinued operations held for sale			-				-				-				20,947				-
Other assets			43,099				40,597				42,205				34,329				33,049
Total Assets		$	3,264,126			$	3,202,455			$	3,154,416			$	3,136,360			$	3,058,242
Liabilities and Stockholders Equity
Liabilities
Deposits:
Demand		$	381,499			$	367,617			$	368,234			$	360,744			$	371,465
Savings			855,036				850,845				804,949				825,600				822,915
Brokered time deposits			68,984				116,082				119,958				118,151				100,572
Other time deposits			1,070,780				1,086,732				1,075,024				1,045,330				1,016,705
Total deposits			2,376,299				2,421,276				2,368,165				2,349,825				2,311,657
Short-term borrowings			354,146				256,822				274,141				304,342				275,694
Other borrowings			263,607				268,716				268,758				210,804				224,523
Liabilities of discontinued operations held for sale			-				-				-				32,086				-
Accrued expenses and other liabilities			39,474				33,366				31,709				27,453				36,657
Total Liabilities			3,033,526				2,980,180				2,942,773				2,924,510				2,848,531
Stockholders Equity			230,600				222,275				211,643				211,850				209,711
Total Liabilities and Stockholders Equity		$	3,264,126			$	3,202,455			$	3,154,416			$	3,136,360			$	3,058,242
Common Share Data
Book value per common share		$	14.04			$	13.48			$	12.88			$	12.85			$	12.65
FAS 115 effect on book value per common share		$	0.37			$	0.13			$	(0.15	)		$	0.10			$	0.05
Common shares outstanding, net of treasury stock			16,427,016				16,492,245				16,437,459				16,484,541				16,572,080
Tangible Capital Ratio(1)			5.78	%			5.62	%			5.35	%			5.38	%			5.46	%

⁽¹⁾ Total stockholders equity less goodwill and intangible assets (excluding mortgage servicing rights) divided by total assets less intangible assets (excluding mortgage servicing rights).

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
		For the Quarters Ended								For the Years Ended
		12/31/2007				12/31/2006				12/31/2007				12/31/2006
Average Balances
Assets		$	3,211,155			$	3,051,995			$	3,154,824			$	2,929,702
Loans and leases, net of unearned			2,283,591				2,151,870				2,272,021				2,071,662
Deposits			2,409,315				2,263,567				2,361,003				2,176,023
Earning assets			2,910,942				2,716,768				2,862,036				2,595,712
Interest bearing liabilities			2,571,327				2,391,269				2,527,839				2,283,502
Stockholders equity			225,945				204,438				215,740				195,124
Tangible stockholders equity			184,871				162,053				174,172				154,368
Earnings Performance Ratios
Annualized return on average assets			0.83	%			0.98	%			0.81	%			0.86	%
Annualized return on average equity			11.86				14.62				11.88				12.86
Annualized return on average tangible equity			14.49				18.44				14.72				16.26
Annualized net interest margin(1)			3.87				4.04				3.95				4.17
Efficiency ratio(2)			64.54				65.97				67.65				68.83

⁽¹⁾ Tax equivalent basis is calculated using an effective tax rate of 35%

⁽²⁾ Noninterest expense divided by the sum of net interest income and noninterest income less net security gains

		For the Quarters Ended
		12/31/2007				9/30/2007				6/30/2007				3/31/2007				12/31/2006
Average Balances
Assets		$	3,211,155			$	3,176,715			$	3,158,088			$	3,073,337			$	3,051,995
Loans and leases, net of unearned			2,283,591				2,287,264				2,302,037				2,214,852				2,151,870
Deposits			2,409,315				2,415,158				2,348,386				2,270,678				2,263,567
Earning assets			2,910,942				2,890,761				2,857,840				2,790,087				2,716,768
Interest bearing liabilities			2,571,327				2,558,460				2,524,956				2,457,797				2,391,269
Stockholders equity			225,945				216,038				211,639				209,338				204,438
Tangible stockholders equity			184,871				174,637				169,641				167,566				162,053
Earnings Performance Ratios
Annualized return on average assets			0.83	%			0.86	%			0.79	%			0.76	%			0.98	%
Annualized return on average equity			11.86				12.72				11.72				11.18				14.62
Annualized return on average tangible equity			14.49				15.91				14.62				13.97				18.44
Annualized net interest margin(1)			3.87				3.87				4.02				4.04				4.04
Efficiency ratio(2)			64.54				68.58				68.39				69.13				65.97

⁽¹⁾ Tax equivalent basis is calculated using an effective tax rate of 35%

⁽²⁾ Noninterest expense divided by the sum of net interest income and noninterest income less net security gains

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
		As of and For				As of and For				As of and For
		the Year				the Year				The Year
		Ended				Ended				Ended
		12/31/2007				12/31/2006				12/31/2005
Loan and Lease Data
Commercial and commercial real estate		$	1,632,597			$	1,483,738			$	1,304,080
Residential mortgage			217,044				225,343				219,671
Agricultural and agricultural real estate			225,663				233,748				230,357
Consumer			199,518				194,652				181,019
Direct financing leases, net			9,158				14,359				21,586
Unearned discount and deferred loan fees			(3,813	)			(3,995	)			(3,647	)
Total loans and leases		$	2,280,167			$	2,147,845			$	1,953,066
Asset Quality
Nonaccrual loans		$	30,694			$	8,104			$	14,877
Loans past due ninety days or more as to interest or principal payments			1,134				315				115
Other real estate owned			2,195				1,575				1,586
Other repossessed assets			438				349				471
Total nonperforming assets		$	34,461			$	10,343			$	17,049
Allowance for Loan and Lease Losses
Balance, beginning of period		$	29,981			$	27,791			$	24,973
Provision for loan and lease losses from continuing operations			10,073				3,883				6,533
Provision for loan and lease losses from discontinued operations			-				(5	)			31
Loans charged off			(8,564	)			(3,989	)			(4,579	)
Recoveries			1,641				1,733				1,152
Reclass for unfunded commitments to other liabilities			-				-				(319	)
Additions related to acquired bank			-				591				-
Reductions related to discontinued operations			(138	)			(23	)			-
Balance, end of period		$	32,993			$	29,981			$	27,791
Asset Quality Ratios
Ratio of nonperforming loans to total loans and leases			1.40	%			0.39	%			0.77	%
Ratio of nonperforming assets to total assets			1.06				0.34				0.60
Ratio of net loan chargeoffs to average loans and leases			0.30				0.11				0.18
Allowance for loan losses as a percent of loans and leases			1.45				1.40				1.42
Allowance for loan losses as a percent of nonperforming loans and leases loans and leases loans and leases			103.66				356.11				185.37

HEARTLAND FINANCIAL USA, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) DOLLARS IN THOUSANDS
		For the Quarters Ended
		12/31/2007											12/31/2006
		Average											Average
		Balance				Interest				Rate			Balance				Interest				Rate
Earning Assets
Securities:
Taxable		$	503,504			$	5,927			4.67	%		$	464,166			$	5,129			4.38	%
Nontaxable(1)			147,715				2,400			6.45				131,268				2,186			6.61
Total securities			651,219				8,327			5.07				595,434				7,315			4.87
Interest bearing deposits			749				13			6.89				790				6			3.01
Federal funds sold			6,827				77			4.47				-				-			-
Loans and leases:
Commercial and commercial real estate(1)			1,617,292				31,349			7.69				1,482,378				29,528			7.90
Residential mortgage			233,829				3,904			6.62				241,786				4,044			6.64
Agricultural and agricultural real estate(1)			224,981				4,481			7.90				220,238				4,599			8.28
Consumer			197,394				5,173			10.40				193,332				4,919			10.09
Direct financing leases, net			10,096				154			6.05				14,136				211			5.92
Fees on loans			-				1,196			-				-				1,602			-
Less: allowance for loan and lease losses			(31,445	)			-			-				(31,326	)			-			-
Net loans and leases			2,252,147				46,257			8.15				2,120,544				44,903			8.40
Total earning assets			2,910,942			$	54,674			7.45	%			2,716,768			$	52,224			7.63	%
Nonearning Assets			300,213											335,227
Total Assets		$	3,211,155										$	3,051,995
Interest Bearing Liabilities
Interest bearing deposits
Savings		$	848,746			$	5,272			2.46	%		$	802,182			$	5,459			2.70	%
Time, $100,000 and over			317,085				3,913			4.90				234,815				2,785			4.71
Other time deposits			868,105				10,355			4.73				869,070				9,829			4.49
Short-term borrowings			273,882				2,748			3.98				254,105				2,952			4.61
Other borrowings			263,509				3,971			5.98				231,097				3,508			6.02
Total interest bearing liabilities			2,571,327				26,259			4.05				2,391,269				24,533			4.07
Noninterest Bearing Liabilities
Noninterest bearing deposits			375,379											357,500
Accrued interest and other liabilities			38,504											98,788
Total noninterest bearing liabilities			413,883											456,288
Stockholders Equity			225,945											204,438
Total Liabilities and Stockholders Equity		$	3,211,155										$	3,051,995
Net interest income(1)						$	28,415										$	27,691
Net interest spread(1)										3.40	%										3.56	%
Net interest income to total earning assets(1)										3.87	%										4.04	%
Interest bearing liabilities to earning assets			88.33	%										88.02	%
(1) Tax equivalent basis is calculated using an effective tax rate of 35%.

HEARTLAND FINANCIAL USA, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) DOLLARS IN THOUSANDS
		For the Years Ended
		12/31/2007											12/31/2006
		Average											Average
		Balance				Interest				Rate			Balance				Interest				Rate
Earning Assets
Securities:
Taxable		$	477,338			$	21,937			4.60	%		$	419,625			$	17,594			4.19	%
Nontaxable (1)			136,552				9,077			6.65				131,149				8,843			6.74
Total securities			613,890				31,014			5.05				550,774				26,437			4.80
Interest bearing deposits			700				33			4.71				555				22			3.96
Federal funds sold			7,295				387			5.31				2,522				164			6.50
Loans and leases:
Commercial and commercial real estate(1)			1,597,247				125,916			7.88				1,427,989				109,495			7.67
Residential mortgage			240,932				16,303			6.77				228,954				14,964			6.54
Agricultural and agricultural real estate(1)			225,471				18,209			8.08				212,992				17,077			8.02
Consumer			196,432				20,655			10.52				187,814				18,684			9.95
Direct financing leases, net			11,939				714			5.98				13,913				839			6.03
Fees on loans			-				5,696			-				-				6,054			-
Less: allowance for loan and lease losses			(31,870	)			-			-				(29,801	)			-			-
Net loans and leases			2,240,151				187,493			8.37				2,041,861				167,113			8.18
Total earning assets			2,862,036			$	218,927			7.65	%			2,595,712			$	193,736			7.46	%
Nonearning Assets			292,788											333,990
Total Assets		$	3,154,824										$	2,929,702
Interest Bearing Liabilities
Interest bearing deposits
Savings		$	831,675			$	22,404			2.69	%		$	781,636			$	18,993			2.43	%
Time, $100,000 and over			291,073				14,307			4.92				220,736				9,287			4.21
Other time deposits			876,146				41,154			4.70				826,610				34,250			4.14
Short-term borrowings			287,428				13,293			4.62				225,500				9,828			4.36
Other borrowings			241,517				14,733			6.10				229,020				13,051			5.70
Total interest bearing liabilities			2,527,839				105,891			4.19				2,283,502				85,409			3.74
Noninterest Bearing Liabilities
Noninterest bearing deposits			362,109											347,041
Accrued interest and other liabilities			49,136											104,035
Total noninterest bearing liabilities			411,245											451,076
Stockholders Equity			215,740											195,124
Total Liabilities and Stockholders Equity		$	3,154,824										$	2,929,702
Net interest income(1)						$	113,036										$	108,327
Net interest spread(1)										3.46	%										3.72	%
Net interest income to total earning assets(1)										3.95	%										4.17	%
Interest bearing liabilities to earning assets			88.32	%										87.97	%
(1) Tax equivalent basis is calculated using an effective tax rate of 35%.

HEARTLAND FINANCIAL USA, INC. SELECTED FINANCIAL DATA SUBSIDIARY BANKS (Unaudited) DOLLARS IN THOUSANDS
		As of and For the Year Ended 12/31/2007				As of and For the Year Ended 12/31/2006			As of and For the Year Ended 12/31/2005
Total Assets
Dubuque Bank and Trust Company		$	976,489		$	843,282		$	833,885
New Mexico Bank & Trust			672,863			638,712			557,062
Wisconsin Community Bank			399,532			413,108			390,842
Rocky Mountain Bank			427,437			438,972			388,149
Galena State Bank and Trust Company			215,698			219,863			241,719
Riverside Community Bank			225,206			199,483			195,099
Arizona Bank & Trust			222,576			223,567			136,832
First Community Bank			127,305			118,010			121,337
Summit Bank & Trust			46,668			21,590			-
Total Deposits
Dubuque Bank and Trust Company		$	670,257		$	636,527		$	608,687
New Mexico Bank & Trust			459,530			437,708			388,935
Wisconsin Community Bank			321,647			336,015			311,436
Rocky Mountain Bank			305,933			335,053			306,967
Galena State Bank and Trust Company			177,040			178,388			179,437
Riverside Community Bank			187,052			162,319			153,791
Arizona Bank & Trust			155,093			176,438			118,959
First Community Bank			103,602			95,287			95,506
Summit Bank & Trust			30,860			6,514			-
Return on Average Assets
Dubuque Bank and Trust Company			1.34	%		1.45	%		1.28	%
New Mexico Bank & Trust			1.48			1.21			1.10
Wisconsin Community Bank			0.62			0.53			0.63
Rocky Mountain Bank			1.51			1.18			0.72
Galena State Bank and Trust Company			0.92			1.35			1.22
Riverside Community Bank			0.55			0.64			0.83
Arizona Bank & Trust			(0.08	)		0.47			0.19
First Community Bank			1.30			1.01			1.00
Summit Bank & Trust			(2.43	)		(6.31	)		-
Net Interest Margin
Dubuque Bank and Trust Company			3.40	%		3.61	%		3.48	%
New Mexico Bank & Trust			4.80			5.05			4.75
Wisconsin Community Bank			3.45			3.83			3.75
Rocky Mountain Bank			4.76			5.16			4.93
Galena State Bank and Trust Company			3.40			3.45			3.43
Riverside Community Bank			3.39			3.71			3.76
Arizona Bank & Trust			4.56			4.92			5.03
First Community Bank			3.80			3.95			3.80
Summit Bank & Trust			5.10			6.98			-
Net Income (Loss)
Dubuque Bank and Trust Company		$	11,907		$	11,990		$	10,156
New Mexico Bank & Trust			8,727			6,873			5,565
Wisconsin Community Bank			2,355			2,109			2,444
Rocky Mountain Bank			6,622			4,840			2,757
Galena State Bank and Trust Company			1,895			3,167			2,808
Riverside Community Bank			1,055			1,252			1,608
Arizona Bank & Trust			(154	)		902			199
First Community Bank			1,476			1,197			1,198
Summit Bank & Trust			(965	)		(1,220	)		-

HEARTLAND FINANCIAL USA, INC. SELECTED FINANCIAL DATA SUBSIDIARY BANKS (Unaudited) DOLLARS IN THOUSANDS
		As of 12/31/2007				As of 12/31/2006			As of 12/31/2005
Total Portfolio Loans
Dubuque Bank and Trust Company		$	637,782		$	581,166		$	575,293
New Mexico Bank & Trust			455,383			410,438			330,609
Wisconsin Community Bank			285,010			272,407			270,837
Rocky Mountain Bank			316,776			309,943			279,230
Galena State Bank and Trust Company			144,152			158,222			176,813
Riverside Community Bank			146,925			137,102			132,781
Arizona Bank & Trust			160,309			160,614			94,285
First Community Bank			84,475			81,498			83,506
Summit Bank & Trust			27,493			14,953			-
Allowance For Loan and Lease Losses
Dubuque Bank and Trust Company		$	7,827		$	7,235		$	7,376
New Mexico Bank & Trust			6,079			5,352			4,497
Wisconsin Community Bank			4520			4,570			4,285
Rocky Mountain Bank			4,061			4,044			4,048
Galena State Bank and Trust Company			1,830			2,049			2,181
Riverside Community Bank			1,885			1,747			1,674
Arizona Bank & Trust			3,605			2,133			1,181
First Community Bank			1,179			1,182			1,191
Summit Bank & Trust			367			192			-
Nonperforming Loans
Dubuque Bank and Trust Company		$	3,344		$	1,216		$	2,745
New Mexico Bank & Trust			1,130			2,206			2,359
Wisconsin Community Bank			12,152			1,966			1,321
Rocky Mountain Bank			2,099			822			5,634
Galena State Bank and Trust Company			1,707			370			965
Riverside Community Bank			2,671			602			462
Arizona Bank & Trust			5,541			254			7
First Community Bank			1,312			588			992
Summit Bank & Trust			1,376			-			-
Allowance As a Percent of Total Loans
Dubuque Bank and Trust Company			1.23	%		1.24	%		1.28	%
New Mexico Bank & Trust			1.33			1.30			1.36
Wisconsin Community Bank			1.59			1.68			1.58
Rocky Mountain Bank			1.28			1.30			1.45
Galena State Bank and Trust Company			1.27			1.30			1.23
Riverside Community Bank			1.28			1.27			1.26
Arizona Bank & Trust			2.25			1.33			1.25
First Community Bank			1.40			1.45			1.43
Summit Bank & Trust			1.33			1.28			-