PRESS RELEASE

March 4, 1997

FROM:     Lynn B. Fuller, President
          Heartland Financial USA, Inc.
          P. O. Box 778
          Dubuque, IA  52004-0778

CONTACT:  John K. Schmidt
          Chief Financial Officer
          PBX (319) 589-1994

RELEASE:  Immediate

                 HEARTLAND COMPLETES TRANSACTION
                                
(Dubuque, IA)  Lynn B. Fuller, president of Heartland Financial
USA, Inc., today announced that 100% of the outstanding stock of
the Cottage Grove State Bank of Cottage Grove, Wisconsin has been
purchased by Heartland.  The transaction has received final
regulatory approvals and is effective March 1, 1997.

"I am delighted to have the Cottage Grove State Bank join the
Heartland family of community banks," said Fuller. "Heartland has
the resources to help the bank provide additional financial
services and to expand the market area currently being served,"
Fuller continued.  "The affiliation of Cottage Grove State Bank
with Heartland is consistent with Heartland's goal of preserving
and enhancing the best traditions of community banking," Fuller
stated.

"I am very pleased that the Cottage Grove State Bank is now part
of the Heartland family," said Vernon Molbreak, bank president.
"I believe our employees see the bank taking an important step
that positions it to offer our personal and business customers a
wider variety of financial services," he said.  "I am confident
that our customers will continue to receive great service because
our veteran bank staff remains in place, and the fact that
decision-making will be made here in Cottage Grove," Molbreak
stated.

The Cottage Grove State Bank had assets slightly in excess of $40-
million as of December 31, 1996.  Heartland Financial is a
financial services company with $725-million of assets based in
Dubuque, Iowa.  Heartland has banking operations in Iowa and
Illinois.  It also owns a consumer finance company which has an
office located in Madison.  It recently acquired ULTEA, a
commercial leasing company, which is headquartered in Madison.