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Heartland Bancshares, Inc. Announces First Quarter Results

^{Published on 2010-05-07 11:50:13 - Market Wire}
 

FRANKLIN, IN--(Marketwire - May 7, 2010) - Heartland Bancshares, Inc. IN (OTCBB: [ HRTB ]) announced that it recorded net loss of $129,000 or $.09 basic and diluted earnings per share for the quarter ended March 31, 2010. Heartland recorded net income of $88,000 or $.06 basic and diluted earnings per share for the same period in 2009. The move from net income to net loss was due to increased provision for loan losses, partially offset by higher net interest income, higher noninterest income and lower noninterest expense.

Net interest income increased by $217,000 or 10.72% to $2,242,000 for the first quarter 2010, from $2,025,000 for the first quarter 2009 primarily due to lower interest expense on deposits. Net interest margin rose to 4.34% for the quarter ended March 31, 2010 compared to 3.95% for the first quarter 2009. Provision for loan losses was $1,000,000 for the first quarter 2010 compared to $300,000 for the first quarter 2009. Noninterest income improved to $721,000 in the first quarter 2010 compared to $616,000 in 2009, an increase of $105,000 or 17.05% primarily due to higher deposit fee income. Noninterest expenses decreased by $110,000 or 4.59% to $2,287,000 in the first quarter 2010 compared to $2,398,000 for the first quarter 2009. Heartland recorded a tax benefit of $196,000 for the first quarter 2010 compared to tax benefit of $145,000 for the first quarter 2009 due to the higher net loss before tax benefit.

Heartland's allowance for loan losses at March 31, 2010 was $3,759,000 or 2.42% of loans. Net charge-offs were $662,000 for the quarter. Non-performing assets totaled $7,415,000 or 2.90% of total assets at March 31, 2010 and included $4,769,000 of non-accrual loans, $369,000 of loans greater than 90 days past due and still accruing, $26,000 of repossessed assets, and $2,251,000 of other real estate. Non-performing assets totaled $7,661,000 or 3.15% of total assets at December 31, 2009.

Total assets increased $12,665,000 or 5.21% to $255,605,000 at March 31, 2010 from $242,940,000 at December 31, 2009. During this same period total deposits increased by $10,638,000 or 5.36% to $208,984,000 at March 31, 2010.

President Steve Bechman commented, "We are pleased to report improvements from the first quarter 2009 in net interest income, noninterest income and noninterest expense combined with deposit growth from December 31, 2010. We are also pleased that our nonperforming assets declined during the quarter; however we determined that it would be prudent to build our loan loss reserves based on certain loans within our current loan portfolio and the fact that the local economy and real estate markets have not shown material improvements."

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, 2010 and December 31, 2009 (Dollar amounts in thousands) (Unaudited) March 31, December 31, 2010 2009 ---------- ---------- Total cash and cash equivalents $ 35,042 $ 21,635 Securities available-for-sale 51,754 49,967 Loans held for sale 466 1,575 Gross loans 155,035 155,532 Allowance for loan losses 3,759 3,421 Total assets 255,605 242,940 Total deposits 208,984 198,345 Total liabilities 234,461 221,813 Shareholders' equity 21,144 21,127 HEARTLAND BANCSHARES, INC. SELECTED INCOME STATEMENT DATA Three Months ended March 31, 2010 and 2009 (Dollar amounts in thousands, except per share data) (Unaudited) 2010 2009 ---------- ---------- Interest income $ 2,810 $ 2,853 Interest expense 568 828 Net interest income 2,242 2,025 Provision for loan losses 1,000 300 Noninterest income 721 616 Noninterest expense 2,287 2,398 Income taxes (196) (145) Net income $ (129) $ 88 Basic and diluted earnings per share $ (.09) $ .06