Business & Finance
Business and Finance
Business and Finance
Mon, February 23, 2009
Sun, February 22, 2009
Fri, February 20, 2009 Heartland Bancshares, Inc.: Heartland Bancshares, Inc. Announces 2008 Operating Results
FRANKLIN, IN--(Marketwire - February 20, 2009) - Heartland Bancshares, Inc. IN (
The loss for the year and the quarter were due to higher provision for loan losses, which increased by $2,200,000 in 2008 compared to 2007 due to higher charge-offs and estimated effects of weaknesses in the national and local economies and housing markets. Heartland's allowance for loan losses at December 31, 2008 was $2,880,000 or 1.82% of total loans compared to $2,042,000 or 1.36% of total loans at December 31, 2007. Net loan charge-offs recorded during 2008 were $1,707,000 or 1.07% of average loans compared to $204,000, or .14% of average loans outstanding in 2007. Non-performing assets total $6,122,000 or 2.66% of total assets at December 31, 2008 compared to $4,758,000 or 2.27% of total assets at December 31, 2007. Non-performing assets include $3,172,000 of non-accrual loans, $1,768,000 of loans past due 90 days and still accruing and $1,182,000 of other real estate at December 31, 2008.
Net interest income increased by $654,000 in 2008 compared to 2007 due to lower rates paid on deposits and other borrowings along with growth in interest earning assets. Heartland's net interest margin increased to 3.74% in 2008 from 3.66% in 2007 primarily due to the decrease in average rates paid on deposits and other borrowings. Non-interest income for 2008 grew by $326,000 or 15.24% from 2007 due to $188,000 more fee and deposit service charge income and $67,000 higher certificate of deposit brokerage commissions. Non-interest expenses increased by $743,000 or 9.40% for the year ended December 31, 2008 compared to 2007, primarily due to higher wages and benefits and occupancy expenses related to new branch facilities opened in 2008.
Total assets grew $21 million or 9.92% to $230 million at December 31, 2008 from $209 million at December 31, 2007. Total loans grew $8 million or 5.39% to $158 million at December 31, 2008. Total deposits increased by $4,890,000 or 2.86%, including $9,294,000 increase in interest bearing checking and savings accounts, partially offset by a $4,459,000 decrease in time deposits. Total equity declined by $2,135,000 from December 31, 2007 to December 31, 2008. Book value per share decreased to $9.97 at December 31, 2008 from $11.22 per share at December 31, 2007. The change in equity was primarily due to $1,088,000 of reduction in the equity portion of unrealized loss on investment securities available for sale, $536,000 of reduction through the stock repurchase program and the $350,000 net loss.
President Steve Bechman commented on the financial results for 2008. "Asset quality and sufficient loan loss reserves have become focal points for most banks in the current economy including Heartland. Within that context, we took some additional provision for loan losses in the fourth quarter of 2008. Our board also decided not to pay a cash dividend in the first quarter 2009 based on the lack of earnings in the fourth quarter 2008. The board will continue to evaluate earnings and capital in connection with any potential future cash dividends. We continue to be well capitalized according to banking regulatory guidance and the strides that we made in improving net interest income and non-interest income helped minimize the loss recorded in 2008. We are very pleased with our growth in net interest margin, loans and checking and savings deposits. We opened our fifth branch in a newly constructed facility in March 2008 and in December 2008 we opened our sixth branch in a building that was previously used as a Fifth Third Bank branch until August 2008 when it was closed. Each of those branches positions us in a new market area. Our six locations in Johnson County combined with our experienced staff make us the premier community bank in Johnson County, Indiana."
HEARTLAND BANCSHARES, INC. SELECTED BALANCE SHEET DATA December 31, 2008 and 2007 (Dollar amounts in thousands) (Unaudited) 2008 2007 --------- --------- Total cash and cash equivalents $ 17,043 $ 10,615 Securities available-for-sale 43,108 39,646 Loans held for sale 759 288 Gross loans 158,395 150,289 Allowance for loan losses 2,880 2,042 Total assets 230,176 209,397 Total deposits 175,936 171,046 Total liabilities 216,244 193,330 Shareholders' equity 13,932 16,067 HEARTLAND BANCSHARES, INC. SELECTED INCOME STATEMENT DATA Three and Twelve Months ended December 31, 2008 and 2007 (Dollar amounts in thousands, except per share data) (Unaudited) Three Months Twelve Months Ended December 31, Ended December 31, 2008 2007 2008 2007 ------- ------- -------- -------- Interest income $ 3,024 $ 3,457 $ 12,401 $ 13,338 Interest expense 937 1,617 4,692 6,283 Provision for loan losses 1,280 265 2,545 345 Noninterest income 619 602 2,468 2,142 Noninterest expense 2,223 2,182 8,657 7,914 Income tax expense/(benefit) (435) (17) (675) 191 Net income/(loss) (362) 12 (350) 747 Basic earnings/(loss) per share (.26) .01 (.25) .53 Diluted earnings/(loss) per share (.26) .01 (.25) .52
