SOURCE: Heartland Bancshares, Inc.

Heartland Bancshares, Inc.

August 15, 2011 13:59 ET

Heartland Bancshares, Inc. Announces Second Quarter Earnings

FRANKLIN, IN--(Marketwire - Aug 15, 2011) - Heartland Bancshares, Inc. IN (OTCBB: HRTB) announced that it recorded net income of $157,000 for the quarter ended June 30, 2011, compared to net income of $349,000 for the quarter ended June 30, 2010. Heartland recorded net income of $79,000 for the six months ended June 30, 2011, compared to $221,000 net income for the six months ended June 30, 2010.

Heartland recorded accretion of discount and mandatory dividends on preferred shares of $109,000 for the quarter ended June 30, 2011 and $124,000 for the quarter ended June 30, 2010. The accretion and dividends on preferred shares are recorded as a reduction of net income available to common shareholders resulting in net income available to common shareholders of $48,000 or $.03 per common and diluted share for the quarter ended June 30, 2011 compared to net income available to common shareholders of $225,000 or $0.16 per common and diluted share for the quarter ended June 30, 2010. Heartland recorded accretion of discount and mandatory dividends on preferred shares of $217,000 for the six months ended June 30, 2011 and $243,000 for the six months ended June 30, 2010 resulting in net loss available to common shareholders of $138,000 or $.10 per common and diluted share for the six months ended June 30, 2011 and net loss available to common shareholders of $22,000 or $0.02 per common and diluted share for the six months ended June 30, 2010.

Provision for loan losses was $600,000 for the second quarter of 2011 compared to $400,000 for the second quarter of 2010. Net chargeoffs for the second quarter 2011 were $6,000 compared to $263,000 of net chargeoffs for the second quarter 2010. Provision for loan losses was $1,525,000 for the six month ended June 30, 2011 compared to $1,400,000 for the same period in 2010. Net chargeoffs for the six months ended June 30, 2011 were $502,000 compared to net chargeoffs of $1,874,000 for the same period in 2010. Heartland's allowance for loan losses at June 30, 2011 was $4,055,000 or 2.89% of loans, an increase of $1,023,000 from the December 31, 2010 balance of $3,032,000, which was 2.09% of loans at that date. Non-performing assets total $7,992,000 or 3.30% of total assets at June 30, 2011 and include $4,217,000 of non-accrual loans, $949,000 of loans greater than 90 days past due and still accruing and $2,826,000 of other real estate. Non-performing assets totaled $8,089,000 or 3.47% of total assets at December 31, 2010. Heartland also had $2,825,000 of loans considered troubled debt restructures which were not past due and not on nonaccrual at June 30, 2011.

President Steve Bechman commented, "We are pleased by the lower level of net chargeoffs during the second quarter. We are monitoring our asset quality closely as the local and national economies continue to be weak and we increased our allowance for loan losses accordingly."

Net interest income was $2,247,000 for the second quarter of 2011 compared to $2,251,000 for the second quarter of 2010. Net interest income was $4,469,000 for the six month period in 2011 compared to $4,493,000 in 2010.

Noninterest income was $694,000 in the second quarter 2011 compared to $862,000 in the second quarter 2010. Noninterest income was $1,461,000 in the six months ended June 30, 2011 compared to $1,583,000 in the six months ended June 30, 2010. The declines were primarily due to lower gains on sales of securities available for sale, which were $0 for the second quarter 2011 compared to $149,000 for the second quarter 2010 and were $35,000 for the six months ended June 30, 2011 compared to $172,000 for the six months ended June 30, 2010.

Noninterest expense declined to $2,171,000 in the second quarter 2011 compared to $2,261,000 in the second quarter 2010. Noninterest expense declined to $4,427,000 in the six months ended June 30, 2011 compared to $4,548,000 in the six months ended June 30, 2010. The declines in both periods are primarily due to lower levels of wages and benefits which declined by $59,000 for the quarter ended June 30, 2011 compared to the quarter ended June 30, 2010 and declined by $143,000 for the six months ended June 30, 2011 compared to the six months ended June 30, 2010.

Total assets increased $8,884,000 or 3.81% to $241,932,000 at June 30, 2011 from $233,048,000 at December 31, 2010. Total deposits increased by $7,670,000 or 3.94% from December 31, 2010 to June 30, 2011. During this same period, gross loans decreased $5,060,000. Total shareholders' equity was $21,221,000 and book value per common share excluding preferred stock was $9.96 at June 30, 2011.

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, 2011 and December 31, 2010
(Dollar amounts in thousand)
(Unaudited)
June 30, December 31,
2011 2010
Total cash and cash equivalents $ 29,210 $ 14,479
Securities available-for-sale 58,776 57,375
Loans held for sale 1,069 1,608
Gross loans 140,244 145,304
Allowance for loan losses 4,055 3,032
Total assets 241,932 233,048
Total deposits 202,510 194,839
Total liabilities 220,711 211,900
Shareholders' equity 21,221 21,148
Book value per common share $ 9.96 $ 10.08
HEARTLAND BANCSHARES, INC.
SELECTED INCOME STATEMENT DATA
Three and Six Months ended June 30, 2011 and 2010
(Dollar amounts in thousands, except per share data)
(Unaudited)
Three Months Six Months
Ended June 30, Ended June 30,
2011 2010 2011 2010
Interest income $ 2,626 $ 2,788 $ 5,232 $ 5,598
Interest expense 379 537 763 1,105
Provision for loan losses 600 400 1,525 1,400
Noninterest income 694 862 1,461 1,583
Noninterest expense 2,171 2,261 4,427 4,548
Income tax expense/(benefit) 13 103 (101 ) (93 )
Net income 157 349 79 221
Preferred stock dividend and accretion 109 124 217 243
Net income/(loss) available to common shareholders $ 48 $ 225 $ (138 ) $ (22 )
Basic and diluted earnings per share $ .03 $ .16 $ (.10 ) $ (.02 )
Basic and Dilutive weighted average shares outstanding 1,412,962 1,397,629 1,405,338 1,397,629

Contact Information

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