Heartland Financial USA Inc., Dubuque, Iowa, is consolidating a state banking charter in a move that is slated to include among its benefits higher loan limits for affected customers.
The charter consolidation would affect the company’s First Community Bank subsidiary in Keokuk, Iowa and Dubuque Bank and Trust.
Pending regulatory approval, the move is slated to occur in the second quarter of 2011. After the consolidation, First Community Bank is expected to continue to operate at its current three locations with existing staff and under the same name but have access to more depth of resources and services as they are pooled. The company said it does not expect any change in employment levels.
Both banks exceed all capital requirements and will continue to be considered well capitalized when their charters are combined, according to the company. The main catalysts for the move are efficiencies in operating costs, audit fees, regulatory exams and insurance premiums, Heartland said.
Heartland recently hired a former Bear Stearns Residential Mortgage executive and his team from a failed Arizona thrift to lead a mortgage operation at the company.
