Heartland Financial USA, Inc. to Receive $81.7 Million in Small Business Loan Funding

Heartland Financial USA, Inc. HTLF announced today that it has received preliminary approval to receive an investment of up to $81.7 million in Heartland preferred stock from the U.S. Department of the Treasury under the Small Business Lending Fund. The SBLF is a $30 billion voluntary program intended to encourage small business lending by providing capital to selected community banks at favorable interest rates. Lynn B. Fuller, Heartland's chairman, president and CEO commented, “We view the Small Business Lending Fund as a new avenue to fulfill our mission and redouble our efforts to stimulate growth of employment through lending to small businesses.” Simultaneously with the receipt of the SBLF funds, Heartland intends to redeem the $81.7 million of preferred stock issued to Treasury in December 2008 under the Capital Purchase Program (“CPP”), a part of the Troubled Asset Relief Program. In addition to the full redemption of the CPP investment, during the period the investment was outstanding, Heartland has paid a total of $13.5 million in dividends to Treasury. Also, Treasury continues to hold a warrant to purchase 609,687 shares of Heartland's common stock at a price of $20.10 per share. Heartland is currently preparing a proposal to Treasury to initiate the process for repurchase of the warrant.
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