KBRA Withdraws Ratings for New Mexico Bank & Trust

24 Aug 2023   |   New York


KBRA withdraws the deposit and senior unsecured debt ratings of A- and short-term deposit and debt ratings of K2 for Heartland Financial USA, Inc.'s (NASDAQ: HTLF) ("Heartland" or "the company") subsidiary, New Mexico Bank & Trust.

The withdrawal of the ratings coincides with HTLF's charter consolidation process, which began in early 2022, with ten of the eleven independent bank charters merging into HTLF Bank thus far. The only remaining charter left to be consolidated is Dubuque Bank & Trust, which is expected to be complete by YE23, with HTLF Bank being the only surviving charter. In KBRA's view, the transaction is neutral to the ratings of HTLF Bank (and all other rated subsidiaries) and the company. With that said, the consolidation is expected to reduce inefficiencies/redundancies and improve HTLF's operating efficiency to help support ongoing product and service enhancements. The total benefits are estimated to be approximately $20 million annually after the project is completed.

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