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Heartland BancCorp Earns $5.7 Million, or $2.63 Per Diluted Share, in the Fourth Quarter of 2024, and a Record $20.3 Million, or $9.75 Per Diluted Share, for the Year

/EIN News/ -- WHITEHALL, Ohio, Jan. 28, 2025 (GLOBE NEWSWIRE) -- Heartland BancCorp (“Heartland” and “the Company”) (OTCQX: HLAN), parent company of Heartland Bank (“Bank”), today reported net income increased 7.2% to $5.7 million, or $2.63 per diluted share, in the fourth quarter of 2024, compared to $5.3 million, or $2.61 per diluted share, in the fourth quarter of 2023, and increased 28.0% compared to $4.4 million, or $2.12 per diluted share, in the preceding quarter. For the year 2024, net income increased 3.8% to a record $20.3 million, or $9.75 per diluted share, compared to $19.5 million, or $9.62 per diluted share, in 2023.

On July 29, 2024, Heartland announced that it had entered into a definitive merger agreement with German American Bancorp (“German American”). Upon completion of the transaction, Heartland’s subsidiary bank, Heartland Bank, will be merged into German American’s subsidiary bank, German American Bank, and operate under a co-branded name within the Ohio markets.

With the shareholders of Heartland and German American having each approved the Merger at special meetings held on November 19, 2024, Heartland and German American anticipate that the Merger will become effective as of February 1, 2025, subject to satisfaction of certain customary closing conditions contained in the Merger Agreement.

“Heartland produced strong net income for the fourth quarter, and record net income for the year, as we continue to deliver value to our clients and expand our market outreach,” stated G. Scott McComb, Chairman, President and Chief Executive Officer. “Our record earnings in 2024 were fueled by moderate loan growth and strong deposit growth generated in our Columbus and Greater Cincinnati market footprint, and our future growth opportunities will only be enhanced by our pending merger with German American. This strategic partnership allows us to partner with another like-minded, larger community bank that enables us to continue our strong brand and growth trajectory within the markets we serve. Strategically and culturally, Heartland and German American are exceptionally well-aligned with a strong commitment to the community banking business model. That model is centered on delivering an exceptional customer experience and the willingness to invest in local communities that Ohio has come to know and love from Heartland. I would like to thank our dedicated team of associates for all they do to support our loyal clients and communities as we look forward to continued success in 2025.”

Fourth Quarter 2024 Financial Highlights (at or for the three months ended December 31, 2024)

  • Net income was $5.7 million, or $2.63 per diluted share, compared to $5.3 million, or $2.61 per diluted share, in the fourth quarter of 2023.
  • Heartland recorded no provision for credit losses during the fourth quarter of 2024, compared to $550,000 for the fourth quarter a year ago.
  • Net interest margin was 3.19%, compared to 3.27% in the preceding quarter and 3.49% in the fourth quarter a year ago.
  • Fourth quarter revenues (net interest income plus noninterest income) were $18.5 million, compared to $18.6 million in the fourth quarter a year ago.
  • Annualized return on average assets was 1.14%, compared to 1.13% in the fourth quarter of 2023.
  • Annualized return on average tangible common equity was 13.90%, compared to 15.05% in the fourth quarter a year ago.
  • Net loans increased $5.6 million during the quarter to $1.54 billion at December 31, 2024, compared to three months earlier.
  • Demand deposits increased 2.8% during the quarter to $443.8 million, compared to $431.6 million three months earlier.
  • Credit quality remains strong with nonperforming loans to gross loans of 0.54% and nonperforming assets to total assets of 0.43% at December 31, 2024.
  • Tangible book value was $80.02 per share at December 31, 2024, compared to $74.23 per share a year ago.
  • Paid a quarterly cash dividend of $0.759 per share on December 30, 2024.

2024 Full Year Financial Highlights (at or for the twelve months ended December 31, 2024)

  • Net income for 2024 increased 3.8% to a record $20.3 million, compared to $19.5 million in 2023.
  • Net interest margin was 3.28% for the year, compared to 3.62% for 2023.
  • Annualized return on average assets was 1.06% for 2024, compared to 1.09% for 2023.
  • Annualized return on average tangible equity was 13.02% for 2024, compared to 14.15% for 2023.
  • Net loans increased $10.2 million year-over-year to $1.54 billion, compared to $1.53 billion a year ago.
  • Total deposits increased $108.1 million, or 6.6%, to $1.75 billion, compared to $1.64 billion a year ago.

Balance Sheet Review
Assets
Total assets increased 4.7% to $1.97 billion at December 31, 2024, compared to $1.88 billion a year earlier, and increased 1.6% compared to three months earlier. Heartland’s loan-to-deposit ratio was 88.0% at December 31, 2024, compared to 90.0% at September 30, 2024, and 93.2% at December 31, 2023.

Securities increased 5.3% to $222.4 million at December 31, 2024, compared to $211.1 million a year earlier, and decreased 3.3% compared to $229.9 million three months earlier. Securities comprise 11.3% of total assets at December 31, 2024, compared to 11.8% three months earlier and 11.2% a year ago.

Average earning assets increased to $1.87 billion in the fourth quarter of 2024, compared to $1.82 billion in the third quarter of 2024, and $1.75 billion in the fourth quarter of 2023. The average yield on interest-earning assets was 5.82% in the fourth quarter of 2024, down 13 basis points from 5.95% in the preceding quarter, and up 11 basis points from 5.71% in the fourth quarter a year ago.

Loan Portfolio
“Loan growth was muted during the fourth quarter, as we remain disciplined with new loan pricing amid stiff competition in our markets,” said Ben Babcanec, EVP and Chief Operating Officer.

Net loans totaled $1.54 billion at December 31, 2024, and increased modestly compared to $1.53 billion at September 30, 2024, and $1.52 billion at December 31, 2023. Commercial loans increased 7.8% from year ago levels to $186.2 million and comprise 11.9% of the total loan portfolio at December 31, 2024. Owner occupied commercial real estate loans (CRE) decreased 7.5% to $273.8 million at December 31, 2024, compared to a year ago, and comprise 17.6% of the total loan portfolio. Nonowner occupied CRE loans increased modestly to $503.2 million, compared to a year ago, and comprise 32.3% of the total loan portfolio at December 31, 2024. 1-4 family residential real estate loans increased 1.0% from year-ago levels to $513.2 million and represent 32.9% of total loans. Home equity loans increased 25.9% from year-ago levels to $65.1 million and represent 4.2% of total loans, while consumer loans decreased 5.6% from year-ago levels to $17.9 million and represent 1.1% of the total loan portfolio at December 31, 2024.

Deposits
Total deposits were $1.75 billion at December 31, 2024, a $45.0 million, or 2.6% increase, compared to $1.71 billion at September 30, 2024, and a $108.1 million, or 6.6% increase, compared to $1.64 billion at December 31, 2023. “Average deposits increased $61.6 million, or 3.6%, to $1.75 billion in the fourth quarter of 2024 compared to the preceding quarter, with good growth in all deposit categories,” said Babcanec.

At December 31, 2024, noninterest bearing demand deposit accounts decreased 9.0% compared to a year ago and represent 25.3% of total deposits; savings, NOW and money market accounts remained relatively unchanged compared to a year ago and represent 40.7% of total deposits; and CDs increased 33.8% compared to a year ago and comprise 33.9% of total deposits. The average cost of deposits was 2.73% in the fourth quarter of 2024, compared to 2.75% in the third quarter of 2024 and 2.21% in the fourth quarter of 2023.

Shareholders’ Equity
Shareholders’ equity was $175.4 million at December 31, 2024, compared to $175.9 million three months earlier and increased 7.9% compared to $162.5 million a year earlier. At December 31, 2024, Heartland’s tangible book value was $80.02 per share compared to $80.61 at September 30, 2024, and $74.23 at December 31, 2023.

Heartland continues to maintain capital levels in excess of the requirements to be categorized as “well-capitalized” with tangible equity to tangible assets of 8.30% at December 31, 2024, compared to 8.46% at September 30, 2024, and 8.00% at December 31, 2023.

Operating Results
In the fourth quarter of 2024, Heartland generated a ROAA of 1.14% and a ROATCE of 13.90%, compared to 0.91% and 11.10%, respectively, in the third quarter of 2024 and 1.13% and 15.05%, respectively, in the fourth quarter a year ago.

Net Interest Income/Net Interest Margin
Net interest income, before the provision for credit losses, decreased 2.5% to $15.0 million in the fourth quarter of 2024, compared to $15.4 million in the fourth quarter a year ago, and increased modestly compared to $14.9 million in the preceding quarter. For the year ended December 31, 2024, net interest income decreased 2.4% to $59.6 million, compared to $61.0 million in 2023.

Total revenues (net interest income, before the provision for credit losses, plus noninterest income) were $18.5 million in the fourth quarter of 2024, a 1.0% decrease compared to $18.6 million in the fourth quarter a year ago, and a 2.8% increase compared to $18.0 million in the preceding quarter. For the year 2024, total revenues were $72.4 million, compared to $73.5 million in 2023.

Heartland’s net interest margin was 3.19% in the fourth quarter of 2024, compared to 3.27% in the preceding quarter and 3.49% in the fourth quarter of 2023.

“The interest rate reductions during the third and fourth quarters of 2024 put temporary pressure on our net interest margin due to a lag in the maturity and downward repricing of some higher cost deposits,” said Carrie Almendinger, EVP and Chief Financial Officer.

Provision for Credit Losses
Due to strong credit quality, minimal net loan charge-offs, modest loan growth and economic forecast improvements within the CECL model, Heartland recorded no provision for credit losses in the fourth quarter of 2024. This compared to no provision for credit losses in the third quarter of 2024 and a $550,000 provision for credit losses in the fourth quarter of 2023.

Noninterest Income
Noninterest income increased 7.9% to $3.5 million in the fourth quarter of 2024, compared to $3.2 million in the fourth quarter a year ago, and increased 14.7% compared to $3.0 million in the preceding quarter. “Higher title insurance income and increases in income from life insurance contributed to gains in noninterest income during the fourth quarter,” said Almendinger.

Gains on sale of loans and originated mortgage servicing rights decreased 16.1% to $616,000 in the fourth quarter of 2024, compared to $734,000 in the fourth quarter a year ago, and decreased 10.6% compared to $689,000 in the preceding quarter. For the year 2024, noninterest income increased 3.1% to $12.8 million, compared to $12.4 million in 2023.

Noninterest Expense
Noninterest expense was $11.6 million during the fourth quarter of 2024, compared to $12.4 million in the preceding quarter and $11.6 million in the fourth quarter a year ago. Salary and employee benefits expense, the largest component of noninterest expense, was $6.8 million in the fourth quarter of 2024, compared to $7.2 million in the preceding quarter and $7.4 million in the fourth quarter of 2023. For the year 2024, noninterest expense totaled $47.5 million, compared to $47.1 million in 2023.

One-time merger related expenses totaled $278,000 in the fourth quarter of 2024 and $671,000 in the third quarter of 2024.

The efficiency ratio for the fourth quarter of 2024 was 62.7%, compared to 69.1% for the preceding quarter and 62.5% for the fourth quarter of 2023.

Income Tax Provision
In the fourth quarter of 2024, Heartland recorded $1.2 million in state and federal income tax expense for an effective tax rate of 17.7%, compared to $1.1 million, or 20.2%, in the third quarter of 2024 and $1.1 million, or 17.7%, in the fourth quarter a year ago.

Credit Quality
“Our credit quality metrics continue to remain stable, despite an increase in nonaccrual loans during the quarter,” said McComb. “Overall, we are seeing minimal signs of stress in the loan portfolio, and we hold strong collateral positions with all our loans.”

At December 31, 2024, the allowance for credit losses plus unfunded commitment liability (ACL + UCL) was $19.0 million, or 1.22% of total loans, compared to $19.1 million, or 1.23% of total loans, at September 30, 2024, and $19.4 million, or 1.25% of total loans, a year ago. As of December 31, 2024, the ACL represented 367% of nonaccrual loans, compared to 949% three months earlier and 1,106% one year earlier.

Nonaccrual loans were $4.9 million at December 31, 2024, compared to $1.9 million at September 30, 2024, and $1.6 million at December 31, 2023. At December 31, 2024, nonaccrual loans totaled 12 loans with an average balance of approximately $406,000. There was $3.6 million in loans past due 90 days and still accruing at December 31, 2024, compared to $5,000 at September 30, 2024, and $468,000 at December 31, 2023. Net loan charge-offs totaled $71,000 at December 31, 2024, compared to $32,000 in net loan recoveries at September 30, 2024, and $318,000 in net loan charge-offs at December 31, 2023.

There was no other real estate owned (“OREO”) and other nonperforming assets on the books at December 31, 2024. This compared to OREO of $30,000 at September 30, 2024, and $10,000 at December 31, 2023. Nonperforming assets (NPAs), consisting of nonperforming loans and loans past due 90 days or more, were $8.4 million, or 0.43% of total assets, at December 31, 2024, compared to $1.9 million, or 0.10%, at September 30, 2024, and $2.1 million, or 0.11% of total assets, at December 31, 2023.

About Heartland BancCorp
Heartland BancCorp is a registered Ohio bank holding company and the parent of Heartland Bank, which operates 20 full-service banking offices and TransCounty Title Agency, LLC. Heartland Bank, founded in 1911, provides full-service commercial, small business and consumer banking services; professional financial planning services; and other financial products and services. Heartland Bank is a member of the Federal Reserve, a member of the FDIC and an Equal Housing Lender. Heartland BancCorp is currently quoted on the OTC Markets (OTCQX) under the symbol HLAN. Learn more about Heartland Bank at Heartland.Bank.

Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about (i) Heartland’s plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts; and (ii) other statements identified by words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “targets,” “projects,” or words of similar meaning generally intended to identify forward-looking statements. These forward-looking statements are based upon the current beliefs and expectations of Heartland’s management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the control of Heartland. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from the anticipated results discussed in these forward-looking statements because of the following factors, among others: (1) the assumptions and estimates used by Heartland’s management include both assumptions as to certain business decisions that are subject to change and, in many respects, subjective judgment, and thus is susceptible to multiple interpretations and periodic revisions based on actual experience and business developments, and thus, may not be realized; (2) legislative or regulatory changes, including changes in accounting standards, may adversely affect the businesses in which Heartland is engaged; (3) changes in the interest rate environment may adversely affect net interest income; (4) results may be adversely affected by continued diversification of assets and adverse changes to credit quality; (5) competition from other financial services companies in Heartland’s markets could adversely affect operations; and (6) the current economic slowdown could adversely affect credit quality and loan originations.

Heartland cautions that the foregoing list of factors is not exclusive. All subsequent written and oral forward-looking statements are expressly qualified in their entirety by the cautionary statements above. Heartland does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law.

Additional Information
Communications in this press release do not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any proxy vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The proposed merger will be submitted to both the German American and Heartland shareholders for their consideration. In connection with the proposed merger, German American will file a Registration Statement on Form S-4 with the U.S. Securities and Exchange Commission (“SEC”) that will include a joint proxy statement for German American and Heartland and a prospectus for German American and other relevant documents concerning the proposed merger. INVESTORS ARE URGED TO READ THE REGISTRATION STATEMENT AND THE CORRESPONDING JOINT PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED MERGER WHEN IT BECOMES AVAILABLE, AS WELL AS ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, TOGETHER WITH ALL AMENDMENTS AND SUPPLEMENTS TO THOSE DOCUMENTS, AS THEY WILL CONTAIN IMPORTANT INFORMATION. You will be able to obtain a copy of the joint proxy statement/prospectus once filed, as well as other filings containing information about German American, without charge, at the SEC’s website (http://www.sec.gov) or by accessing German American’s website (http://www.germanamerican.com) under the tab “Investor Relations” and then under the heading “Financial Information”. Copies of the joint proxy statement/prospectus and the filings with the SEC that will be incorporated by reference in the joint proxy statement/prospectus can also be obtained, without charge, by directing a request to Bradley C. Arnett, Investor Relations, German American Bancorp, Inc., 711 Main Street, Box 810, Jasper, Indiana 47546, telephone 812-482-1314 or to Jennifer Eckert, Investor Relations, Heartland BancCorp, 430 North Hamilton Road, Whitehall, Ohio 43213, telephone 614-337-4600.

German American and Heartland and certain of their directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of German American and Heartland in connection with the proposed merger. Information about the directors and executive officers of German American is set forth in the proxy statement for German American’s 2024 annual meeting of shareholders, as filed with the SEC on Schedule 14A on March 21, 2024, which information has been updated by German American from time to time in subsequent filings with the SEC. Information about the directors and executive officers of Heartland will be set forth in the joint proxy statement/prospectus relating to the proposed merger. Additional information about the interests of those participants and other persons who may be deemed participants in the transaction may also be obtained by reading the joint proxy statement/prospectus relating to the proposed merger when it becomes available. Free copies of this document may be obtained as described above.


 
Heartland BancCorp
Quarterly Financial Summary
                       
    Three Months Ended
Earnings and dividends: Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 Mar. 31, 2024 Dec. 31, 2023
  Interest income $ 27,334   $ 27,233   $ 26,190   $ 25,626   $ 25,195  
  Interest expense   12,334     12,288     11,408     10,764     9,807  
  Net interest income   15,000     14,945     14,782     14,862     15,388  
  Provision for credit losses   -     -     -     -     550  
  Noninterest income   3,470     3,026     3,212     3,119     3,217  
  Noninterest expense   11,580     12,420     11,753     11,775     11,632  
  Provision for income taxes   1,222     1,123     1,154     1,124     1,135  
  Net income   5,668     4,428     5,087     5,082     5,288  
                       
Share data:                    
  Basic earnings per share $ 2.80   $ 2.19   $ 2.52   $ 2.52   $ 2.62  
  Diluted earnings per share   2.63     2.12     2.50     2.51     2.61  
  Dividends declared per share   0.76     0.76     0.76     0.76     0.76  
  Book value per share   86.31     86.95     83.19     81.28     80.66  
  Tangible book value per share   80.02     80.61     76.81     74.88     74.23  
                       
  Common shares outstanding, 20,000,000 authorized   2,123,355     2,113,153     2,106,879     2,105,737     2,105,737  
  Treasury shares   (90,612 )   (90,612 )   (90,612 )   (90,612 )   (90,612 )
  Common shares, net   2,032,743     2,022,541     2,016,267     2,015,125     2,015,125  
  Average common shares outstanding, net   2,024,267     2,018,442     2,015,627     2,015,125     2,015,125  
                       
Balance sheet - average balances:                    
  Loans receivable, net $ 1,541,814   $ 1,533,219   $ 1,524,818   $ 1,519,946   $ 1,520,331  
  Earning assets   1,869,509     1,820,509     1,795,555     1,776,073     1,749,160  
  Goodwill & intangible assets   12,805     12,846     12,888     12,934     12,982  
  Total assets   1,974,165     1,926,237     1,899,413     1,878,171     1,854,191  
  Demand deposits   442,599     423,555     437,524     453,581     476,992  
  Deposits   1,751,452     1,689,877     1,670,394     1,639,911     1,622,335  
  Borrowings   29,508     47,792     47,225     58,938     60,857  
  Shareholders' equity   175,050     171,562     164,744     163,283     152,393  
                       
Ratios:                    
  Return on average assets   1.14 %   0.91 %   1.08 %   1.09 %   1.13 %
  Return on average equity   12.88 %   10.27 %   12.42 %   12.52 %   13.77 %
  Return on average tangible common equity   13.90 %   11.10 %   13.47 %   13.59 %   15.05 %
  Yield on earning assets   5.82 %   5.95 %   5.87 %   5.80 %   5.71 %
  Cost of deposits   2.73 %   2.75 %   2.61 %   2.45 %   2.21 %
  Cost of funds   2.76 %   2.81 %   2.67 %   2.55 %   2.31 %
  Net interest margin   3.19 %   3.27 %   3.31 %   3.37 %   3.49 %
  Efficiency ratio   62.70 %   69.11 %   65.33 %   65.49 %   62.52 %
                       
Asset quality:                    
  Net loan charge-offs to average loans   0.02 %   -0.01 %   0.08 %   0.01 %   0.08 %
  Nonperforming loans to gross loans   0.54 %   0.12 %   0.13 %   0.13 %   0.13 %
  Nonperforming assets to total assets   0.43 %   0.10 %   0.11 %   0.10 %   0.11 %
  Allowance for credit losses to gross loans   1.15 %   1.15 %   1.15 %   1.17 %   1.16 %
  ACL + UCL to gross loans   1.22 %   1.23 %   1.23 %   1.27 %   1.25 %
                       


Heartland BancCorp
Consolidated Balance Sheets
             
                               
Assets Dec. 31, 2024   Sep. 30, 2024   Jun. 30, 2024   Mar. 31, 2024   Dec. 31, 2023
  Cash and due from $ 15,783     $ 35,186     $ 14,292     $ 18,314     $ 16,750  
  Interest bearing deposits   87,077       32,585       31,419       15,717       19,932  
  Interest bearing time deposits   -       -       -       -       -  
  Available-for-sale securities   222,351       229,907       233,270       222,609       211,130  
  Held-to-maturity securities   0       0       0       0       0  
                               
  Loans held for sale   1,462       2,854       2,855       2,210       1,145  
                               
  Commercial   186,156       183,739       179,961       166,413       172,658  
  CRE (Owner occupied)   273,764       287,261       291,107       293,542       295,996  
  CRE (Non Owner occupied)   503,223       489,483       495,466       489,709       501,056  
  1-4 Family   513,223       510,587       504,959       507,374       508,826  
  Home Equity   65,098       63,184       59,011       54,178       51,697  
  Consumer   17,902       19,436       18,916       18,859       18,974  
  Allowance for credit losses   (17,902 )     (17,845 )     (17,813 )     (17,897 )     (17,928 )
  Net Loans   1,541,464       1,535,845       1,531,607       1,512,178       1,531,279  
                               
  Premises and equipment   32,115       32,548       33,039       33,298       33,649  
  Nonmarketable equity securities   6,949       6,946       6,943       6,941       6,866  
  Mortgage servicing rights, net   3,638       3,545       3,473       3,384       3,373  
  Foreclosed assets held for sale   0       30       0       0       10  
  Goodwill   12,388       12,388       12,388       12,388       12,388  
  Intangible Assets   392       433       475       517       565  
  Deferred income taxes   7,375       6,007       7,213       6,662       7,087  
  Life insurance assets   20,614       20,809       20,675       20,545       20,315  
  Accrued interest receivable and other assets   20,128       21,520       22,483       22,429       18,661  
  Total assets $ 1,971,736     $ 1,940,603     $ 1,920,132     $ 1,877,192     $ 1,883,150  
                               
Liabilities and Shareholders' Equity                            
Liabilities                            
  Deposits                            
  Demand $ 443,754     $ 431,582     $ 414,829     $ 419,864     $ 487,631  
  Saving, NOW and money market   713,060       686,221       673,674       705,942       711,198  
  Time   593,876       587,927       556,690       502,848       443,772  
  Total deposits   1,750,690       1,705,730       1,645,193       1,628,654       1,642,601  
  Repurchase agreements   4,975       5,590       6,295       4,472       4,583  
  FHLB Advances   0       10,000       59,000       38,000       31,000  
  Subordinated debt   24,076       24,065       24,055       24,044       24,034  
  Interest payable and other liabilities   16,555       19,352       17,849       18,228       18,400  
  Total liabilities   1,796,296       1,764,737       1,752,392       1,713,398       1,720,618  
                               
Shareholders' Equity                            
  Common stock, without par value   64,986       63,899       63,002       62,797       62,725  
  Retained earnings   134,193       130,069       127,174       123,617       120,064  
  Accumulated other comprehensive income (expense)   (18,745 )     (13,108 )     (17,442 )     (17,626 )     (15,263 )
  Treasury stock at Cost, Common   (4,994 )     (4,994 )     (4,994 )     (4,994 )     (4,994 )
  Total shareholders' equity   175,440       175,866       167,740       163,794       162,532  
  Total liabilities and shareholders' equity $ 1,971,736     $ 1,940,603     $ 1,920,132     $ 1,877,192     $ 1,883,150  
                               


Heartland BancCorp
Consolidated Statements of Income
                                   
    Three Months Ended
Interest Income Dec. 31, 2024   Sep. 30, 2024   Jun. 30, 2024   Mar. 31, 2024   Dec. 31, 2023
  Loans $ 23,943     $ 24,194     $ 23,381     $ 23,015     $ 22,850  
  Securities                                
  Taxable   1,756       1,870       1,744       1,637       1,374  
  Tax-exempt   683       686       677       657       629  
  Other   952       483       388       317       342  
  Total interest income   27,334       27,233       26,190       25,626       25,195  
Interest Expense                                
  Deposits   12,005       11,687       10,832       10,006       9,017  
  Borrowings   329       601       576       758       790  
  Total interest expense   12,334       12,288       11,408       10,764       9,807  
Net Interest Income   15,000       14,945       14,782       14,862       15,388  
Provision for Credit Losses   -       -       -       -       550  
Net Interest Income After Provision for Credit Losses   15,000       14,945       14,782       14,862       14,838  
Noninterest income                                
  Service charges   977       1,005       1,011       952       1,002  
  Gains on sale of loans and originated MSR   616       689       645       518       734  
  Loan servicing fees, net   370       416       396       494       354  
  Title insurance income   292       120       231       210       214  
  Increase in cash value of life insurance   637       134       130       230       175  
  Other   578       662       799       715       738  
  Total noninterest income   3,470       3,026       3,212       3,119       3,217  
Noninterest Expense                                
  Salaries and employee benefits   6,764       7,181       7,064       7,300       7,430  
  Net occupancy and equipment expense   1,079       1,133       1,145       1,106       1,052  
  Software and data processing fees   1,187       1,230       1,158       1,156       1,163  
  Professional fees   702       1,125       496       233       242  
  Marketing expense   228       213       303       310       320  
  State financial institution tax   327       292       293       292       260  
  FDIC insurance premiums   229       214       234       284       299  
  Other   1,064       1,032       1,060       1,094       866  
  Total noninterest expense   11,580       12,420       11,753       11,775       11,632  
Income before Income Tax   6,890       5,551       6,241       6,206       6,423  
Provision for Income Taxes   1,222       1,123       1,154       1,124       1,135  
Net Income $ 5,668     $ 4,428     $ 5,087     $ 5,082     $ 5,288  
Basic Earnings Per Share $ 2.80     $ 2.19     $ 2.52     $ 2.52     $ 2.62  
Diluted Earnings Per Share $ 2.63     $ 2.12     $ 2.50     $ 2.51     $ 2.61  
                                   


Heartland BancCorp
Consolidated Statements of Income
                 
    Twelve Months Ended
Interest Income Dec. 31, 2024   Dec. 31, 2023
  Loans $ 94,533     $ 84,424  
  Securities   -          
  Taxable   7,007       4,320  
  Tax-exempt   2,703       2,442  
  Other   2,140       1,200  
  Total interest income   106,383       92,386  
Interest Expense   -          
  Deposits   44,530       28,690  
  Borrowings   2,264       2,662  
  Total interest expense   46,794       31,352  
Net Interest Income   59,589       61,034  
Provision for Credit Losses   -       2,600  
Net Interest Income After Provision for Credit Losses 59,589       58,434  
Noninterest income              
  Service charges   3,945       4,012  
  Gains on sale of loans and originated MSR   2,468       2,372  
  Loan servicing fees, net   1,676       1,530  
  Title insurance income   853       892  
  Increase in cash value of life insurance   1,131       526  
  Other   2,754       3,108  
  Total noninterest income   12,827       12,440  
Noninterest Expense              
  Salaries and employee benefits   28,309       29,558  
  Net occupancy and equipment expense   4,463       4,231  
  Software and data processing fees   4,731       4,462  
  Professional fees   2,556       1,021  
  Marketing expense   1,054       1,199  
  State financial institution tax   1,204       1,039  
  FDIC insurance premiums   961       1,166  
  Other   4,250       4,376  
  Total noninterest expense   47,528       47,052  
Income before Income Tax   24,888       23,822  
Provision for Income Taxes   4,623       4,306  
Net Income $ 20,265     $ 19,516  
Basic Earnings Per Share $ 10.04     $ 9.69  
Diluted Earnings Per Share $ 9.75     $ 9.62  
                 


Heartland BancCorp
ADDITIONAL FINANCIAL INFORMATION
(Dollars in thousands except per share amounts)(Unaudited)
                     
Asset Quality Ratios and Data:    
    Dec. 31, 2024   Sep. 30, 2024   Jun. 30, 2024   Mar. 31, 2024   Dec. 31, 2023
Nonaccrual loans (excluding restructured loans)   $ 4,872     $ 1,881     $ 1,569     $ 1,817     $ 1,621  
Nonaccrual restructured loans     -       -       -       -       -  
Loans past due 90 days and still accruing     3,559       5       513       149       468  
Total non-performing loans     8,431       1,886       2,082       1,966       2,089  
                     
OREO and other non-performing assets     -       30       -       -       10  
Total non-performing assets   $ 8,431     $ 1,916     $ 2,082     $ 1,966     $ 2,099  
                     
Nonperforming loans to gross loans     0.54 %     0.12 %     0.13 %     0.13 %     0.13 %
Nonperforming assets to total assets     0.43 %     0.10 %     0.11 %     0.10 %     0.11 %
Allowance for credit losses to gross loans     1.15 %     1.15 %     1.15 %     1.17 %     1.16 %
Unfunded commitment liability to gross loans     0.07 %     0.08 %     0.08 %     0.10 %     0.09 %
ACL + UCL to gross loans     1.22 %     1.23 %     1.23 %     1.27 %     1.25 %
                     


Contact: G. Scott McComb, Chairman, President & CEO
  Heartland BancCorp 614-337-4600

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