The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

Heartland in Denver repositions its balance sheet

Heartland Financial USA in Denver joined the list of banks selling underwater securities.

The $20.1 billion-asset company said in a press release that it sold securities with $805.8 million in proceeds at a $129.1 million pretax loss. The proceeds were used to repay high-cost wholesale deposits and wholesale funding.

Heartland said the sales were part of a broader strategic plan, adding that management will discuss the overall effort when it reports fourth-quarter earnings in January.

The repositioning should increase net interest income be $24.3 million annually. Tangible common equity immediately increased by 43 basis points due to a smaller balance sheet.

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