SOURCE: Heartland Bancshares, Inc.

Heartland Bancshares, Inc.

August 05, 2009 17:00 ET

Heartland Bancshares, Inc. Announces Second Quarter Earnings

FRANKLIN, IN--(Marketwire - August 5, 2009) - Heartland Bancshares, Inc. IN (OTCBB: HRTB) announced that it recorded net income of $90,000 or $.06 basic and diluted earnings per share for the quarter ended June 30, 2009, compared to the quarter ended June 30, 2008 net income of $104,000 or $.07 basic and diluted earnings per share, a decrease of $14,000 or 13.46%. Heartland's return on average assets and return on average equity were .16% and 2.47% for the second quarter 2009 compared to .19% and 2.73% for the second quarter 2008. Heartland recorded net income of $178,000 or $.13 basic and diluted earnings per share for the six months ended June 30, 2009, compared to $334,000 or $.23 basic and diluted earnings per share for the six months ended June 30, 2008. Heartland's return on average assets and return on average equity were .16% and 2.45% for the six months ended June 30, 2009 compared to .31% and 4.37% for the six months ended June 30, 2008.

Net interest income was $2,099,000 for the second quarter of 2009 compared to $1,858,000 for the second quarter of 2008, an increase of $241,000 or 12.97%. Net interest margin was 4.05% for the quarter ended June 30, 2009 compared to 3.55% for the second quarter 2008. Net interest income increased by $504,000 to $4,123,000 for the six month period in 2009 compared to $3,619,000 in 2008. Net interest margin was 3.98% for the six month period in 2009 compared to 3.56% for the same period in 2008.

Provision for loan losses was $400,000 for the second quarter of 2009 compared to $125,000 for the second quarter of 2008, up $275,000. Provision for the six month period in 2009 was $700,000 compared to $200,000 in 2008, up $500,000. The increase in provision was due to $1,242,000 of net chargeoffs in the second quarter 2009 and $1,595,000 of net chargeoffs in the six months ended June 30, 2009 compared to $153,000 of net chargeoffs in the second quarter 2008 and $252,000 of net chargeoffs in the six months ended June 30, 2008. Heartland's allowance for loan losses at June 30, 2009 was $1,985,000 or 1.25% of loans. Non-performing assets total $7,070,000 or 3.02% of total assets at June 30, 2009 and include $3,253,000 of non-accrual loans, $2,619,000 of loans greater than 90 days past due and still accruing and $1,198,000 of other real estate. Non-performing assets totaled $6,122,000 or 2.66% of total assets at December 31, 2008.

Noninterest income increased by $66,000 or 10.41% to $700,000 in the second quarter 2009 compared to $634,000 in the second quarter 2008. Noninterest income increased by $87,000 or 7.08% to $1,316,000 in the six months ended June 30, 2009 compared to $1,229,000 in the six months ended June 30, 2008. Included in those increases are gains on sales of mortgage loans, which increased by $61,000 for the second quarter 2009 compared to the second quarter 2008 and by $90,000 for the six months ended June 30, 2009 compared to the six months ended June 30, 2008.

Noninterest expense increased by $94,000 or 4.10% to $2,385,000 in the second quarter 2009 compared to $2,291,000 in the second quarter 2008. Noninterest expense increased by $468,000 or 10.85% to $4,782,000 in the six months ended June 30, 2009 compared to $4,314,000 in the six months ended June 30, 2008. The increases in both periods are partially due to higher FDIC insurance premiums which increased by $42,000 for the quarter and by $119,000 for the six month period in 2009 compared to the same periods in 2008. The noninterest expense increases in both periods are also partially due to the opening of Heartland Community Bank's fifth branch office in March 2008 and sixth branch office in December 2008. Wages and benefits, occupancy and data processing expenses all increased as a result of the new branch offices.

Heartland recorded tax benefit of $76,000 for the second quarter 2009 compared to tax benefit of $28,000 for the second quarter 2008. Heartland recorded $221,000 tax benefit for the six months ended June 30, 2009 compared to $0 for the same period in 2008. The increases in tax benefit are due to the declines in taxable income for both periods.

Total assets increased $3,702,000 or 1.61% to $233,878,000 at June 30, 2009 from $230,176,000 at December 31, 2008. During this same period, gross loans increased $71,000. Total deposits increased by $17,560,000 or 9.98% from December 31, 2008 to June 30, 2009. Demand and savings deposits increased $16,667,000 or 15.22% to $126,183,000 at June 30, 2009 from $109,516,000 at December 31, 2008. Total shareholders equity was $14,727,000 and book value per share was $10.54 at June 30, 2009.

President Steve Bechman commented, "We are pleased to report exceptional growth in demand and savings deposits and growth in net interest income and non-interest income. Our net interest margin has benefited by the deposit growth through the ability to replace higher cost certificates of deposits and other borrowings. The world wide economic slowdown continued to affect the local economy and our borrowers causing higher levels of chargeoffs, provision for loan loss and nonperforming assets. We are monitoring our asset quality closely. Heartland Community Bank's capital position, which is well above the minimums required to be considered well capitalized by banking regulators, and our liquidity position, with over $19 million in cash and cash equivalents, enable us to be proud to offer safe banking services during this turbulent time in the banking industry."

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.
                        SELECT BALANCE SHEET DATA
                  June 30, 2009 and December 31, 2008
                      (Dollar amounts in thousands)
                               (Unaudited)

                                              June 30,   December 31,
                                                2009        2008
                                             ----------  ----------

Total cash and cash equivalents              $   19,322  $   17,793
Securities available-for-sale                    43,190      41,366
Loans held for sale                               1,377         759
Gross loans                                     158,466     158,395
Allowance for loan losses                         1,985       2,880
Total assets                                    233,878     230,176
Total deposits                                  193,496     175,936
Total liabilities                               219,151     216,244
Shareholders' equity                             14,727      13,932



                        HEARTLAND BANCSHARES, INC.
                     SELECTED INCOME STATEMENT DATA
            Three and Six Months ended June 30, 2009 and 2008
          (Dollar amounts in thousands, except per share data)
                              (Unaudited)

                               Three Months          Six Months
                              Ended June 30,       Ended June 30,
                              2009      2008       2009      2008
                           --------- ---------  --------- ---------

Interest income            $   2,871 $   3,109  $   5,724 $   6,306
Interest expense                 772     1,251      1,601     2,687
Provision for loan losses        400       125        700       200
Noninterest income               700       634      1,316     1,229
Noninterest expense            2,385     2,291      4,782     4,314
Income tax expense               (76)      (28)      (221)        -
Net income                 $      90 $     104  $     178 $     334
Basic and diluted earnings
 per share                 $     .06 $     .07  $     .13 $     .23
Weighted average shares
 outstanding               1,397,629 1,419,210  1,397,629 1,427,643
Dilutive weighted average
 shares outstanding        1,397,629 1,432,749  1,397,629 1,439,061

Contact Information

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