Item 2.02 Results of Operations and Financial Condition

Heartland Financial USA, Inc. (the Company) reports that in the fourth quarter of 2008 it expects to record provision for loan losses of approximately $15 million compared to $7 million recorded during the third quarter of 2008. As a result, the total provision for loan losses for the year 2008 is expected to be approximately $30 million compared to $10 million for the year 2007. The allowance for loan and lease losses as a percent of total loans and leases is expected to remain unchanged at 1.47% as reported for September 30, 2008. Nonperforming assets are expected to be approximately $88 million or 2.5% of total assets at December 31, 2008, compared to $54 million or 1.6% of total assets at September 30, 2008. The increase in the provision for loan losses is caused by a variety of factors, most not determined until late in the quarter, including further deterioration of economic conditions, downgrades in internal risk ratings, reduction in appraised values, higher levels of charge-offs and an increase in nonperforming loans, primarily in the Company's Western markets of Arizona, Montana and Colorado.

As of a result of the increased provision for loan losses, the Company expects to record a net loss in the range of $2 to $3 million for the fourth quarter of 2008. For the year 2008, the Company's net income is expected to be between $11 and $12 million.