SOURCE: Heartland Bancshares, Inc.

April 25, 2007 11:48 ET

Heartland Bancshares, Inc. Announces First Quarter Earnings

FRANKLIN, IN -- (MARKET WIRE) -- April 25, 2007 -- Heartland Bancshares, Inc. IN (OTCBB: HRTB) announced that it recorded net income of $257,000 or $.18 basic and diluted earnings per share for the quarter ended March 31, 2007. Heartland recorded net income of $357,000 or $.25 basic and diluted earnings per share for the same period in 2006. Heartland's return on average assets and return on average equity were .52% and 6.80% for the quarter in 2007.

Heartland closed its retail non-deposit investment brokerage department in February 2007 and incurred over $22,000 of expenses related to that event. Income from that department was $5,000 for the quarter in 2007 compared to $30,000 in 2006.

Net interest income increased by $33,000 to $1,735,000 for the first quarter of 2007, from $1,702,000 for the first quarter of 2006. Net interest margin was 3.72% for the quarter ended March 31, 2007 compared to 3.75% for the first quarter 2006. Provision for loan losses was $0 for the first quarter of 2007 compared to $26,000 for the first quarter of 2006. No provision was needed in the first quarter 2007 due to improvements in certain loans within the loan portfolio. Noninterest income was $136,000 lower in the first quarter 2007 compared to 2006 due to the closing of the investment brokerage department listed above, $65,000 of gains on sales of other real estate recorded in 2006 and lower gains on sale of mortgage loans in 2007 compared to 2006. Noninterest expenses increased by $99,000 in the first quarter 2007 compared to 2006 due to higher wages and benefits related to the closing of the investment brokerage department and due to higher training and education expense related to a bank wide program emphasizing improved customer service and communications implemented in 2007, which included an upfront cost of over $30,000 and on-going monthly cost of $4,000.

Heartland's allowance for loan losses at March 31, 2007 was $1,880,000 or 1.36% of loans. Net charge-offs were $21,000 for the quarter. Non-performing assets totaled $2,927,000 or 1.42% of total assets at March 31, 2007 and include $796,000 of non-accrual loans, $524,000 of loans greater than 90 days past due and still accruing, $1,601,000 of other real estate and $6,000 of repossessed assets. Non-performing assets totaled $2,770,000 or 1.35% of total assets at December 31, 2006.

Total assets increased $1,185,000 to $205,892,000 at March 31, 2007 from $204,707,000 at December 31, 2006. During this same period, gross loans increased $3,766,000 to $137,971,000 at March 31, 2007. Total shareholders equity increased to $15,456,000 and book value per share was $11.04 at March 31, 2007.

President Steve Bechman commented, "We are pleased to report improvements from the first quarter 2006 in net interest income and provision for loan losses combined with loan and total asset growth. We have initiated a bank wide program in 2007 emphasizing customer service and in particular identifying our customers' needs and our opportunities to meet those needs with additional banking products and services. While that program has caused additional non-interest expense in the first quarter of 2007, we are pleased with the energy and enthusiasm that our employees are showing and the responses that we have received from our customers."

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, 2007 and December 31, 2006
                     (Dollar amounts in thousands)
                              (Unaudited)


                                                   March 31,   December 31,
                                                     2007          2006
                                                 ------------  ------------

Total cash and cash equivalents                  $     13,867  $     14,000
Securities available-for-sale                          46,074        47,674
Loans                                                 137,971       134,205
Allowance for loan losses                               1,880         1,858
Total deposits                                        169,581       170,404
Total liabilities                                     190,436       189,421
Shareholders' equity                                   15,456        15,286
Total assets                                     $    205,892  $    204,707




                       HEARTLAND BANCSHARES, INC.
                     SELECTED INCOME STATEMENT DATA
                Three Months ended March 31, 2007 and 2006
            (Dollar amounts in thousands, except per share data)
                              (Unaudited)


                                                     2007          2006
                                                 ------------  ------------

Interest income                                  $     3,195   $      2,914
Interest expense                                       1,460          1,212
Net interest income                                    1,735          1,702
Provision for loan losses                                  -             26
Noninterest income                                       479            615
Noninterest expense                                    1,881          1,782
Income taxes                                              75            152
Net income                                       $       257   $        357
Basic and diluted earnings per share             $       .18   $        .25

Contact Information

  • Contact:
    Steve Bechman
    President
    (317) 738-3915

    Jeff Joyce
    CFO
    (317) 738-3915