SOURCE: Heartland Bancshares, Inc.

Heartland Bancshares, Inc.

April 24, 2009 15:08 ET

Heartland Bancshares, Inc. Announces First Quarter Earnings

FRANKLIN, IN--(Marketwire - April 24, 2009) - Heartland Bancshares, Inc. IN (OTCBB: HRTB) announced that it recorded net income of $88,000 or $.06 basic and diluted earnings per share for the quarter ended March 31, 2009. Heartland recorded net income of $230,000 or $.16 basic and diluted earnings per share for the same period in 2008. The decline in net income was primarily due to the increase in provision for loan losses and higher noninterest expenses related to the opening of Heartland's fifth branch location in March 2008 and sixth branch location in December 2008. Heartland's return on average assets and return on average equity were .16% and 2.57% for the quarter in 2009.

Net interest income increased by $264,000 or 14.95% to $2,025,000 for the first quarter of 2009, from $1,761,000 for the first quarter of 2008. Net interest margin rose to 3.95% for the quarter ended March 31, 2009 compared to 3.58% for the first quarter 2009. Provision for loan losses was $300,000 for the first quarter of 2009 compared to $75,000 for the first quarter of 2008. Noninterest income improved to $616,000 in the first quarter 2009 compared to $594,000 in 2008, an increase of $22,000. Noninterest expenses increased by $376,000 in the first quarter 2009 compared to 2008 due to higher wages and benefits, occupancy costs and data processing related to the opening of a new branch office in March 2008 and another in December 2008. Noninterest expense also increased due to higher FDIC insurance premiums. Heartland recorded a tax benefit of $145,000 for the first quarter 2009 compared to tax expense of $28,000 for the first quarter 2008. The change is due to higher levels of tax exempt income as a percentage of net income before taxes. Heartland also formed an investment subsidiary in April 2008. Net income from the investment subsidiary is not subject to Indiana bank franchise tax.

Heartland's allowance for loan losses at March 31, 2009 was $2,827,000 or 1.76% of loans. Net charge-offs were $353,000 for the quarter. Non-performing assets total $6,403,000 or 2.79% of total assets at March 31, 2009 and include $3,107,000 of non-accrual loans, $1,517,000 of loans greater than 90 days past due and still accruing and $1,779,000 of other real estate. Non-performing assets totaled $6,122,000 or 2.66% of total assets at December 31, 2008.

Total assets decreased $701,000 or 0.30% to $229,475,000 at March 31, 2009 from $230,176,000 at December 31, 2008. During this same period, gross loans increased $1,789,000 or 1.13% to $160,184,000 at March 31, 2009. Total deposits increased by $6,597,000 or 3.75% to $182,533,000 at March 31, 2009. Heartland reduced Federal Home Loan Bank advances payable by $4,548,000 from December 31, 2008 to March 31, 2009. Total shareholders equity increased $400,000 or 2.86% to $14,332,000 and book value per share increased to $10.25 at March 31, 2009.

President Steve Bechman commented, "We are pleased to report improvements from the first quarter 2008 in net interest income and non-interest income combined with loan and deposit growth from December 31, 2008. We continue to monitor our credit quality closely and recorded provision expense at a level close to our net charge-offs for the quarter."

Heartland Community Bank is the wholly owned subsidiary of Heartland Bancshares, Inc. and began banking operations December 17, 1997 in Johnson County, Indiana on the southern edge of the Indianapolis metro area.


                   HEARTLAND BANCSHARES, INC.
                  SELECTED BALANCE SHEET DATA
              March 31, 2009 and December 31, 2008
                 (Dollar amounts in thousands)
                         (Unaudited)

                                                   March 31,   December 31,
                                                      2009        2008
                                                  -----------  -----------

Total cash and cash equivalents                   $    15,048  $    17,793
Securities available-for-sale                          40,437       43,366
Loans held for sale                                     1,942          759
Gross loans                                           160,184      158,395
Allowance for loan losses                               2,827        2,880
Total assets                                          229,475      230,176
Total deposits                                        182,533      175,936
Total liabilities                                     215,143      216,244
Shareholders' equity                                   14,332       13,932





                   HEARTLAND BANCSHARES, INC.
                 SELECTED INCOME STATEMENT DATA
            Three Months ended March 31, 2009 and 2008
      (Dollar amounts in thousands, except per share data)
                           (Unaudited)

                                                      2009         2008
                                                  -----------  -----------

Interest income                                   $     2,853  $     3,197
Interest expense                                          828        1,436
Net interest income                                     2,025        1,761
Provision for loan losses                                 300           75
Noninterest income                                        616          594
Noninterest expense                                     2,398        2,022
Income taxes                                             (145)          28
Net income                                        $        88  $       230
Basic and diluted earnings per share              $       .06  $       .16

Contact Information

  • Contact:
    Steve Bechman
    President
    or
    Jeff Joyce
    CFO
    (317) 738-3915