Heartland Financial USA, Inc. (NASDAQ: HTLF) announced today it has acquired Freedom Bank in Sterling, Illinois, from its parent company, River Valley Bancorp, Inc., a Davenport, Iowa-based bank holding company. The acquisition of Freedom Bank was arranged through a negotiated transfer of ownership with Heartland’s flagship bank, Dubuque Bank and Trust Company.
Freedom Bank is a $67 million community bank headquartered in Sterling, Illinois, with branch offices in Rock Falls and Seaton, Illinois.
“Freedom’s three offices expand our reach and create an opportunity for the Heartland organization to enhance the range of services that Freedom provides to business, agri-business and consumer banking clientele. The Freedom Bank markets in Whiteside and Mercer Counties represent solid and steady markets,” indicated Lynn B. Fuller, President and CEO of Heartland. “With a population base of over 15,000, Sterling in particular presents a strong blend of industry, commercial and retail business as well as residential mortgage potential. Additionally, Sterling serves a robust agricultural market in northwest Illinois.”
Freedom Bank will operate independently as a subsidiary of Dubuque Bank and Trust Company under its current name, staff and systems until at least the first quarter of 2014. Heartland intends to apply at that time for regulatory approval to consolidate Freedom with Riverside Community Bank, Heartland’s Rockford, Illinois-based bank, and will continue the excellent community banking services Freedom has always provided from its current offices.
Freedom Bank president, Pamela Topper, stated, “We are very pleased to partner with a strong company that is committed to face-to-face customer service and locally-based community banking that will continue our long tradition of strong community leadership and support. We look forward to providing the expanded range of services that can be offered to our business and personal customers through the Heartland organization.”
Said Dennis Hanson, President and CEO of Valley Bank, a wholly-owned subsidiary of River Valley Bancorp, Inc., “We believe our Freedom Bank customers will be in very good hands going forward. Heartland and its subsidiary banks are a perfect fit, with a strong orientation toward business and commercial clients, and a wide selection of financial products, all delivered via enhanced technology. This transaction is also good for River Valley Bancorp as it allows us to focus more resources on our primary banking markets in the Quad Cities and central Iowa.”
The transaction has been approved by regulatory authorities and the River Valley Bancorp, Inc. board of directors.
About Heartland Financial USA, Inc.
Heartland Financial USA,
Inc., one of Forbes 2013 “Best Banks in America,” is a $5.7 billion
diversified financial services company providing banking, mortgage,
wealth management, investment, insurance and consumer finance services
to individuals and businesses. Heartland currently has 78 banking
centers in 56 communities in Iowa, Illinois, Wisconsin, New Mexico,
Arizona, Montana, Colorado, Minnesota, Kansas and Missouri and loan
production offices in California, Nevada, Wyoming, Idaho Oregon,
Washington and North Dakota. 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 Heartland and its management, may contain
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 about Heartland’s financial condition,
results of operations, plans, objectives, future performance and
business. Although these forward-looking statements are based upon the
beliefs, expectations and assumptions of Heartland’s management, there
are a number of factors, many of which are beyond the ability of
management to control or predict, that could cause actual results to
differ materially from those in its forward-looking statements. These
factors, which are detailed in the risk factors included in Heartland’s
Annual Report on Form 10-K filed with the Securities and Exchange
Commission, include, among others: (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 Company’s general business; (iv) changes in interest rates and
prepayment rates of the Company’s 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. All statements in this release, including
forward-looking statements, speak only as of the date they are made, and
Heartland undertakes no obligation to update any statement in light of
new information or future events.
Contacts:
Bryan R. McKeag, 563-589-1994
Chief
Financial Officer
bmckeag@htlf.com
or
Valley
Bank
Dennis H. Hanson, 515-202-1103
President and CEO