Heartland conducts a community banking business through independently chartered
community banks operating in the states of Iowa, Illinois, Wisconsin, New Mexico,
Arizona, Montana, Colorado, Minnesota, Kansas, Missouri, Texas and California.
All Bank Subsidiaries are members of the Federal Deposit Insurance Corporation
(the "FDIC"). Listed below are our current ten Bank Subsidiaries, which
operate a total of 108 banking locations serving approximately 210,000 business
and consumer households:
Dubuque Bank and Trust Company, Dubuque, Iowa, is chartered under the laws of
the state of Iowa.
Illinois Bank & Trust, Rockford, Illinois (formerly known as Riverside Community
Bank and includes the operations of the former Galena State Bank & Trust
Co., which was merged into Illinois Bank & Trust on January 23, 2015), is
chartered under the laws of the state of Illinois.
Wisconsin Bank & Trust, Madison, Wisconsin, is chartered under the laws
of the state of Wisconsin.
New Mexico Bank & Trust, Albuquerque, New Mexico, is chartered under the
laws of the state of New Mexico.
Rocky Mountain Bank, Billings, Montana, is chartered under the laws of the state
of Montana.
Arizona Bank & Trust, Phoenix, Arizona, is chartered under the laws of the
state of Arizona.
Centennial Bank and Trust (formerly known as Summit Bank & Trust), Denver,
Colorado, is chartered under the laws of the state of Colorado.
Minnesota Bank & Trust, Edina, Minnesota, is chartered under the laws of
the state of Minnesota.
Morrill & Janes Bank and Trust Company, Merriam, Kansas, is chartered under
the laws of the state of Kansas.
Premier Valley Bank, Fresno, California, is chartered under the laws of the
state of California.
Dubuque Bank and Trust Company also has two wholly-owned non-bank subsidiaries:
DB&T Insurance, Inc., a multi-line insurance agency.
DB&T Community Development Corp., a community development company with the
primary purpose of partnering in low-income housing and historic rehabilitation
projects.
Heartland has three active non-bank subsidiaries as listed below:
Citizens Finance Parent Co., a consumer finance company with two wholly-owned
subsidiaries:
Citizens Finance Co., a consumer finance company with offices in Iowa and Wisconsin.
Citizens Finance of Illinois Co., a consumer finance company with offices in
Illinois.
Heartland Community Development Inc., a property management company with the
primary purpose of holding and managing certain nonperforming assets acquired
from the Bank Subsidiaries.
Heartland Financial USA, Inc. Insurance Services, a multi-line insurance agency
with the primary purpose of providing online insurance products to consumers
and small business clients in Bank Subsidiary markets.
Heartland had trust preferred securities issued through special purpose trust
subsidiaries formed for the purpose of offering cumulative capital securities,
including Heartland Financial Statutory Trust IV, Heartland Financial Statutory
Trust V, Heartland Financial Statutory Trust VI, Heartland Financial Statutory
Trust VII, Morrill Statutory Trust I, Morrill Statutory Trust II, Sheboygan
Statutory Trust I and CBNM Capital Trust I.
The principal business of our Bank Subsidiaries consists of making loans to
and accepting deposits from businesses and individuals. Our Bank Subsidiaries
provide full service commercial and retail banking in their communities. Both
our loans and our deposits are generated primarily through strong banking and
community relationships, and through management that is actively involved in
the community. Our lending and investment activities are funded primarily by
core deposits. This stable source of funding is achieved by developing strong
banking relationships with customers through value-added product offerings,
competitive market pricing, convenience and high-touch personal service. Deposit
products, which are insured by the FDIC to the full extent permitted by law,
include checking and other demand deposit accounts, NOW accounts, savings accounts,
money market accounts, certificates of deposit, individual retirement accounts,
health savings accounts and other time deposits. Loan products include commercial
and industrial, commercial real estate, small business, agricultural, real estate
mortgage, consumer, and credit cards for commercial, business and personal use.
We supplement the local services of our Bank Subsidiaries with a full complement
of ancillary services, including wealth management, investment and insurance
services. We provide convenient electronic banking services and client access
to account information through business and personal online banking, mobile
banking, bill payment, remote deposit capture, treasury management services,
debit cards and automated teller machines.
We believe the personal and professional service we offer to our customers
provides an appealing alternative to the service provided by the "megabanks"
resulting from mergers and acquisitions in the financial services industry.
While we employ a community banking philosophy, we believe our size, combined
with our full line of financial products and services, is sufficient to effectively
compete in our respective market areas. To remain price competitive, we also
believe that we must manage expenses and gain economies of scale by centralizing
back office support functions. Although each of our Bank Subsidiaries operates
under the direction of its own board of directors, we have standard operating
policies regarding asset/liability management, liquidity management, investment
management, and lending and deposit structure management.
Another component of our operating strategy is to encourage all directors,
officers and employees to maintain a strong ownership interest in Heartland.
We have established ownership guidelines for our directors and executive management
and have made an employee stock purchase plan available to employees since 1996.
The Bank Subsidiaries provide a wide range of commercial and consumer banking
services to businesses, including public sector and non-profit entities, and
to individuals. These activities include credit and deposit products along with
treasury management, investment management, trust, retirement plans, and brokerage
and investment services.
Our bankers actively solicit the business of new companies entering their market
areas as well as established companies in their respective business communities.
We believe that the Bank Subsidiaries are successful in attracting new customers
in their markets through professional service, competitive pricing, innovative
credit facilities, convenient locations and proactive communications
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