SOURCE: Heartland Bancshares, Inc.

April 29, 2008 10:00 ET

Heartland Bancshares, Inc. Announces First Quarter Earnings

FRANKLIN, IN--(Marketwire - April 29, 2008) - Heartland Bancshares, Inc. IN (OTCBB: HRTB) announced that it recorded net income of $230,000 or $.16 basic and diluted earnings per share for the quarter ended March 31, 2008. Heartland recorded net income of $257,000 or $.18 basic and diluted earnings per share for the same period in 2007. The decline in net income was primarily due to the increase in noninterest expenses related to the opening of Heartland's fifth branch location in March 2008. Heartland's return on average assets and return on average equity were .43% and 5.62% for the quarter in 2008.

Net interest income increased by $26,000 to $1,761,000 for the first quarter of 2008, from $1,735,000 for the first quarter of 2007. Net interest margin was 3.58% for the quarter ended March 31, 2008 compared to 3.72% for the first quarter 2007. Provision for loan losses was $75,000 for the first quarter of 2008 compared to $0 for the first quarter of 2007. Noninterest income improved to $594,000 in the first quarter 2008 compared to $478,000 in 2007, an increase of $116,000. Noninterest expenses increased by $141,000 in the first quarter 2008 compared to 2007 due to higher wages and benefits, occupancy costs and advertising related to the opening of a new branch office in March 2008. Income taxes declined by $47,000 for the first quarter 2008 compared to 2007 due to higher levels of tax exempt income as a percentage of net income before taxes.

Heartland's allowance for loan losses at March 31, 2008 was $2,018,000 or 1.28% of loans. Net charge-offs were $51,000 for the quarter. Non-performing assets declined to $3,892,000 or 1.72% of total assets at March 31, 2008 and include $2,049,000 of non-accrual loans, $521,000 of loans greater than 90 days past due and still accruing and $1,322,000 of other real estate. Non-performing assets total $4,758,000 or 2.27% of totaled assets at December 31, 2007.

Total assets increased $16,814,000 or 8.03% to $226,211,000 at March 31, 2008 from $209,397,000 at December 31, 2007. During this same period, gross loans increased $7,407,000 or 4.93% to $157,696,000 at March 31, 2008. Total deposits increased by $9,501,000 or 5.55% to $180,547,000 at March 31, 2008. Total shareholders equity increased $435,000 or 2.71% to $16,502,000 and book value per share increased to $11.44 at March 31, 2008.

President Steve Bechman commented, "We are pleased to report improvements from the first quarter 2007 in net interest income and non-interest income combined with loan and deposit growth and improvement in non-performing assets from December 31, 2007. We are excited about the opening of our fifth branch facility in the first quarter 2008. While that addition caused additional noninterest expense in the first quarter of 2008, we are pleased with the early success of the branch including already opening over 100 deposit accounts."

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, 2008 and December 31, 2007
                     (Dollar amounts in thousands)
                             (Unaudited)

                                                 March 31,    December 31,
                                                   2008           2007
                                               -----------    -----------

Total cash and cash equivalents                $    21,068    $    10,616
Securities available-for-sale                       37,344         39,646
Loans                                              157,696        150,289
Allowance for loan losses                           (2,018)        (2,042)
Total deposits                                     180,547        171,046
Total liabilities                                  209,709        193,329
Shareholders' equity                                16,502         16,067
Total assets                                   $   226,211    $   209,397




                       HEARTLAND BANCSHARES, INC.
                     SELECTED INCOME STATEMENT DATA
               Three Months ended March 31, 2008 and 2007
          (Dollar amounts in thousands, except per share data)
                              (Unaudited)

                                                  2008           2007
                                               -----------    -----------

Interest income                                $     3,197    $     3,195
Interest expense                                     1,436          1,460
Net interest income                                  1,761          1,735
Provision for loan losses                               75              -
Noninterest income                                     594            478
Noninterest expense                                  2,022          1,881
Income taxes                                            28             75
Net income                                     $       230    $       257
Basic and diluted earnings per share           $       .16    $       .18

Contact Information

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