Heartland Financial buying 3 Liberty Bank offices in Dubuque

DUBUQUE -- Three branches of Liberty Bank in Dubuque and East Dubuque, Ill., will be purchased by Heartland Financial, corporate parent of Dubuque Bank and Trust Co.

Heartland Financial expects to combine the acquired assets and deposit accounts into Dubuque Bank and Trust. The total purchase price was not disclosed.

The sale is subject to the approval of bank regulatory authorities and is expected to close during the third quarter of this year.

West Des Moines-based Liberty Bank has been selling off branches to raise capital. Regulators told Liberty Bank last summer that it needed to raise its core capital ratio after it sustained  loan losses in Florida during the recession.

The three Liberty Bank branch locations had combined deposits of approximately $55 million on March 31. Loans totaling about $10 million also will be acquired as part of the agreement.

Dubuque Bank & Trust had assets of $1.4 billion and deposits of $979 million on March 31. Under terms of the sale agreement, Heartland Financial will assume the deposit liabilities and purchase certain loans and other assets associated with the three Liberty Bank offices.

Lynn Fuller, Heartland financial chairman, president and chief executive officer, said the transaction offers Dubuque Bank & Trust, the company's  flagship bank, to grow within the Dubuque market.

"We have previously announced our desire to expand in our current footprint and Liberty will be an excellent fit," Fuller said. "We are acquiring a talented team of local management and staff with an excellent knowledge of the community and the customers they serve."