Two subsidiaries of Heartland Financial USA, Dubuque, Iowa, have finalized sale of a loan portfolio.
Citizens Finance Co. and Citizens Finance of Illinois Co., have completed the sale of their existing loan portfolios totaling approximately $70 million to American Credit Acceptance, LLC, Spartanburg, S.C. The transaction is not expected to have a material effect on Heartland’s consolidated financial results.
“Over the past 5 years, Heartland has strategically focused on growing and expanding its community banking businesses,” said Bruce Lee, who became president and CEO of the $11.3 billion Heartland last year. “Our decision to exit the consumer finance business will allow us to sharpen our focus on our core businesses and execute on our strategic priorities.”
All of Citizens’ 14 current offices located in Iowa, Illinois and Wisconsin will remain open through the end of January 2019 to assist customers with the transition to ACA.
Sandler O’Neill + Partners served as financial advisor to Heartland, and Barack Ferrazzano Kirschbaum & Nagelberg LLP served as legal advisor.