WHITEHALL, Ohio, Jan. 23, 2024 (GLOBE NEWSWIRE) -- Heartland BancCorp (“Heartland” and “the Company”) (OTCQX: HLAN), parent company of Heartland Bank (“Bank”), today reported net income increased 5.2% to $5.3 million, or $2.61 per diluted share, in the fourth quarter of 2023, compared to $5.0 million, or $2.48 per diluted share, in the fourth quarter of 2022, and increased 7.2% compared to $4.9 million, or $2.43 per diluted share, in the preceding quarter. For the year 2023, net income increased 8.0% to a record $19.5 million, or $9.62 per diluted share, compared to $18.1 million, or $8.90 per diluted share, in 2022.

The company also announced that its board of directors declared a quarterly cash dividend of $0.759 per share. The dividend will be payable April 10, 2024, to shareholders of record as of March 25, 2024. Heartland has paid regular quarterly cash dividends since 1993.

“Heartland produced strong net income for the fourth quarter, and record earnings for the year, as we continue to selectively grow the loan portfolio while maintaining a strong deposit base,” stated G. Scott McComb, Chairman, President and Chief Executive Officer. “As in previous quarters, we continued to remain selective on the loans we added during the quarter, while adhering to disciplined loan pricing. The result was tempered loan growth during the fourth quarter of 1.8%, and newly funded loans had a weighted rate of 8.22%, up approximately 37 basis points from the prior quarter. Additionally, we have been successful at growing new deposit accounts, up 4.0% over the prior quarter end, while also maintaining core deposit balances. With solid revenue generation and stable credit quality metrics, we are well positioned for the year ahead.”

“We continue to see excellent growth in our Columbus and Greater Cincinnati markets and look for ways to expand our market outreach to these MSAs as well as surrounding areas,” McComb continued. “During the preceding quarter, we opened our 20th Heartland Bank branch in Delaware County, and our brand of community banking is already being well received in this thriving county just north of Columbus. Our focus for 2024 will be to capture additional market share in our established Columbus and Greater Cincinnati markets while continuing to work on improving operating efficiencies across the Company.”

Fourth Quarter 2023 Financial Highlights (at or for the three months ended December 31, 2023)

  • Net income was $5.3 million, or $2.61 per diluted share, compared to $5.0 million, or $2.48 per diluted share, in the fourth quarter of 2022.
  • Provision for credit losses was $550,000, compared to $480,000 for the fourth quarter a year ago.
  • Net interest margin was 3.49%, compared to 3.52% in the preceding quarter and 4.13% in the fourth quarter a year ago.
  • Fourth quarter revenues (net interest income plus noninterest income) increased 1.6% to $18.6 million, compared to $18.3 million in the fourth quarter a year ago.
  • Annualized return on average assets was 1.13%, compared to 1.23% in the fourth quarter of 2022.
  • Annualized return on average tangible common equity was 15.05%, compared to 15.63% in the fourth quarter a year ago.
  • Net loans increased $27.6 million during the quarter, or 1.8%, to $1.53 billion at December 31, 2023, compared to $1.50 billion three months earlier.
  • Total deposits increased $63.3 million during the quarter, or 4.0%, to $1.64 billion at December 31, 2023, compared to $1.58 billion three months earlier.
  • Credit quality remains pristine, with nonperforming loans to gross loans of 0.13% and nonperforming assets to total assets of 0.11%, at December 31, 2023.
  • Tangible book value increased 14.0% to $74.23 per share, compared to $65.09 per share a year ago.
  • Declared a quarterly cash dividend of $0.759 per share.

2023 Full Year Financial Highlights (at or for the twelve months ended December 31, 2023)

  • Net income for 2023 increased 8.0% to $19.5 million, compared to $18.1 million in 2022.
  • Net interest margin was 3.62% for the year, compared to 4.03% for 2022.
  • Total revenues increased 7.5% to $73.5 million in 2023, compared to $68.4 million in 2022.
  • Annualized return on average assets was 1.09% for 2023, compared to 1.20% for 2022.
  • Annualized return on average tangible equity was 14.15% for 2023, compared to 13.60% for 2022.
  • Net loans increased $143.4 million, or 10.3%, year-over-year to $1.53 billion.
  • Total deposits increased 12.8% to $1.64 billion, compared to $1.46 billion a year ago.

Balance Sheet Review

Assets

Total assets increased 13.2% to $1.88 billion at December 31, 2023, compared to $1.66 billion a year earlier, and increased 2.6% compared to $1.83 billion three months earlier. Heartland’s loan-to-deposit ratio was 93.2% at December 31, 2023, compared to 95.2% at September 30, 2023, and 95.3% at December 31, 2022.

Securities increased 38.5% to $211.1 million at December 31, 2023, compared to $152.5 million a year earlier, and increased 17.4% compared to $179.8 million three months earlier. Securities comprise 11.2% of total assets at December 31, 2023, compared to 9.8% three months prior and 9.2% a year ago.

Average earning assets increased to $1.75 billion in the fourth quarter of 2023, compared to $1.72 billion in the third quarter of 2023, and $1.52 billion in the fourth quarter a year ago. The average yield on interest-earning assets was 5.71% in the fourth quarter of 2023, up 12 basis points from 5.59% in the preceding quarter, and up 80 basis points from 4.91% in the fourth quarter a year ago.

Loan Portfolio

“We continued to moderate loan growth during the quarter, resulting in net loans increasing 1.8% over the prior quarter end, with average loans increasing 1.5% compared to the prior quarter,” said Ben Babcanec, EVP and Chief Operating Officer. “While loan demand has been strong, we remain disciplined with loan pricing which is resulting in slower growth.”

Net loans were $1.53 billion at December 31, 2023, compared to $1.50 billion at September 30, 2023, and a 10.3% increase compared to $1.39 billion at December 31, 2022. Commercial loans increased 6.1% from year ago levels to $172.7 million, and comprise 11.1% of the total loan portfolio at December 31, 2023. Owner occupied commercial real estate loans (CRE) decreased 9.2% to $296.0 million at December 31, 2023, compared to a year ago, and comprise 19.1% of the total loan portfolio. Nonowner occupied CRE loans increased 28.0% to $501.1 million, compared to a year ago, and comprise 32.3% of the total loan portfolio at December 31, 2023. 1-4 family residential real estate loans increased 10.2% from year-ago levels to $508.8 million and represent 32.8% of total loans. Home equity loans increased 16.1% from year-ago levels to $51.7 million and represent 3.3% of total loans, while consumer loans increased 4.0% from year-ago levels to $19.0 million and represent 1.2% of the total loan portfolio at December 31, 2023.

Deposits

Total deposits were $1.64 billion at December 31, 2023, a 4.0% increase, compared to $1.58 billion at September 30, 2023, and a $186.0 million, or 12.8% increase, compared to $1.46 billion at December 31, 2022. “Average deposits increased $23.8 million, or 1.5%, to $1.62 billion in the fourth quarter of 2023 compared to the preceding quarter, with the growth in DDA, money market and CD accounts,” said Babcanec. “Average demand deposits increased $3.6 million during the quarter, which is helping to improve our funding mix.”

At December 31, 2023, noninterest bearing demand deposit accounts decreased 6.8% compared to a year ago and represented 29.7% of total deposits; savings, NOW and money market accounts increased 16.7% compared to a year ago and represented 43.3% of total deposits; and CDs increased 37.0% compared to a year ago and comprised 27.0% of total deposits. The average cost of deposits was 2.21% in the fourth quarter of 2023, compared to 2.05% in the third quarter of 2023 and 0.70% in the fourth quarter of 2022.

Shareholders’ Equity

Shareholders’ equity increased 8.6% to $162.5 million at December 31, 2023, compared to $149.6 million three months earlier and increased 12.9% compared to $143.9 million a year earlier. At December 31, 2023, Heartland’s tangible book value was $74.23 per share compared to $67.78 at September 30, 2023, and $65.09 at December 31, 2022.

Heartland continues to maintain capital levels in excess of the requirements to be categorized as “well-capitalized” with tangible equity to tangible assets of 8.00% at December 31, 2023, compared to 7.50% at September 30, 2023, and 7.92% at December 31, 2022.

Liquidity

Heartland had ample sources of available liquidity as of December 31, 2023, including a $220 million line of credit at the Federal Home Loan Bank, as well as additional credit lines of $120 million. Nearly 67% of Heartland’s client deposit balances were FDIC insured or collateralized as of December 31, 2023.

Operating Results

In the fourth quarter of 2023, Heartland generated a ROAA of 1.13% and a ROATCE of 15.05%, compared to 1.07% and 14.01%, respectively, in the third quarter of 2023 and 1.23% and 15.63%, respectively, in the fourth quarter a year ago.

Net Interest Income/Net Interest Margin

Net interest income, before the provision for credit losses, decreased 2.8% to $15.4 million in the fourth quarter of 2023, compared to $15.8 million in the fourth quarter a year ago, and increased modestly compared to $15.3 million in the preceding quarter. For the year 2023, net interest income increased 7.1% to $61.0 million, compared to $57.0 million in 2022.

Total revenues (net interest income, before the provision for credit losses, plus noninterest income) were $18.6 million in the fourth quarter of 2023, a 1.6% increase compared to $18.3 million in the fourth quarter a year ago, and a modest increase compared to $18.5 million in the preceding quarter. For the year, total revenues increased 7.5% to $73.5 million, compared to $68.4 million a year earlier.

Heartland’s net interest margin was 3.49% in the fourth quarter of 2023, compared to 3.52% in the preceding quarter and 4.13% in the fourth quarter of 2022. “Our net interest margin is starting to stabilize, contracting three basis points during the fourth quarter, compared to the prior quarter. While deposit pricing pressures continue, the increase in average DDA balances helped to ease funding costs. Additionally, we continue to benefit from repricing loans at higher rates,” said Carrie Almendinger, EVP and Chief Financial Officer.

Heartland’s net interest margin continues to remain above the peer average posted by the Dow Jones U.S. MicroCap Bank Index with total market capitalization under $250 million as of September 30, 2023.*

Provision for Credit Losses

Heartland recorded a $550,000 provision for credit losses in the fourth quarter of 2023, compared to a $500,000 provision for credit losses in the third quarter of 2023, and a $480,000 provision for credit losses in the fourth quarter of 2022.

Noninterest Income

Noninterest income increased 29.4% to $3.2 million in the fourth quarter of 2023, compared to $2.5 million in the fourth quarter a year ago, and was unchanged compared to the preceding quarter. Gains on sale of loans and originated mortgage servicing rights increased 236.7% to $734,000 in the fourth quarter of 2023, compared to $218,000 in the fourth quarter a year ago, and increased 3.7% compared to $708,000 in the preceding quarter. For the year 2023, noninterest income increased 9.3% to $12.4 million, compared to $11.4 million in 2022.

“Similar to the prior quarter, we experienced strong secondary loan activity during the fourth quarter, and we were successful with executing on swaps, with $497,000 in swap referral fee income during the fourth quarter, compared to $189,000 in swap referral fee income during the preceding quarter,” said Almendinger.

Noninterest Expense

Noninterest expenses were $11.6 million during the fourth quarter of 2023, a 2.9% decrease compared to $12.0 million in the preceding quarter, and a 1.1% decrease compared to $11.8 million in the fourth quarter a year ago. Salary and employee benefit expenses, the largest component of noninterest expense, were $7.4 million in the fourth quarter of 2023, which was unchanged compared to the preceding quarter and a modest decrease compared to $7.5 million in the fourth quarter of 2022. For the year, noninterest expense totaled $47.1 million, compared to $44.2 million in 2022.

“We have made a company-wide effort over the last few quarters to manage operating expenses, and we will continue this focus into 2024,” said Almendinger. “Salary and employee benefits were lower in part due to lower incentive compensation from muted loan growth. We also had a benefit of approximately $200,000 recognized through other expenses.”

The efficiency ratio for the fourth quarter of 2023 was 62.5%, compared to 64.7% for the preceding quarter and 64.2% for the fourth quarter of 2022.

Income Tax Provision

In the fourth quarter of 2023, Heartland recorded $1.1 million in state and federal income tax expense for an effective tax rate of 17.7%, compared to $1.1 million, or 18.1%, in the third quarter of 2023 and $1.0 million, or 17.2%, in the fourth quarter a year ago.

Credit Quality

“Our overall credit quality metrics continue to remain stable. We are seeing minimal signs of stress in the loan portfolio, and we hold strong collateral positions with all our loans,” said McComb.

Beginning January 1, 2023, Heartland began accounting for credit losses under CECL which replaced the former “incurred loss” model for recognizing credit losses with an “expected loss” model.

___________________________

*As of September 30, 2023, the Dow Jones U.S. MicroCap Bank Index tracked 177 banks with total common market capitalization under $250 million for the following ratios: NIM* of 3.26%.

At December 31, 2023, the allowance for credit losses plus unfunded commitment liability (ACL + UCL) was $19.4 million, or 1.25% of total loans, compared to $19.2 million, or 1.26% of total loans, at September 30, 2023, and $16.6 million, or 1.18% of total loans, a year ago. As of December 31, 2023, the ACL represented 1,106% of nonaccrual loans, compared to 883% three months earlier and 2,370% one year earlier.

Nonaccrual loans were $1.6 million at December 31, 2023, compared to $1.9 million at September 30, 2023, and $700,000 at December 31, 2022. At December 31, 2023, nonaccrual loans totaled 10 loans with an average balance of approximately $162,000. There were $468,000 in loans past due 90 days and still accruing at December 31, 2023, compared to $146,000 at September 30, 2023, and $309,000 at December 31, 2022. Net loan charge-offs totaled $318,000 at December 31, 2023, compared to $47,000 in net loan charge-offs at September 30, 2023, and $118,000 in net loan charge-offs at December 31, 2022. The increase in net loan charge-offs during the quarter was related to one PPP loan.

There was $10,000 in other real estate owned and other nonperforming assets on the books at December 31, 2023, compared to zero at September 30, 2023, and $5,000 at December 31, 2022. Nonperforming assets (NPAs), consisting of nonperforming loans and loans past due 90 days or more, were $2.1 million, or 0.11% of total assets, at December 31, 2023, which was unchanged compared to September 30, 2023. NPAs were $1.0 million, or 0.06% of total assets, at December 31, 2022.

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.

In June of 2023, Heartland was ranked #119 on the American Banker Magazine’s list of Top 200 Publicly Traded Community Banks and Thrifts based on three-year average return on equity as of December 31, 2022.

During the first quarter of 2023, Heartland was ranked 36th on the OTCQX’s Best 50 list for 2023. The OTCQX Best 50 is an annual ranking of the top 50 U.S. and international companies traded on the OTCQX Best Market, based on an equal weighting of one-year total return and average daily dollar volume growth. Companies in the 2023 OTCQX Best 50 were ranked based on their performance during the 2022 calendar year.

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.

Heartland BancCorp
Quarterly Financial Summary
            
  Three Months Ended
Earnings and dividends:Dec. 31, 2023Sep. 30, 2023Jun. 30, 2023Mar. 31, 2023Dec. 31, 2022
 Interest income$25,195 $24,194 $22,476 $20,521 $18,841 
 Interest expense 9,807  8,928  7,437  5,180  3,011 
 Net interest income 15,388  15,266  15,039  15,341  15,830 
 Provision for credit losses 550  500  800  750  480 
 Noninterest income 3,217  3,232  3,390  2,601  2,487 
 Noninterest expense 11,632  11,975  11,695  11,750  11,761 
 Provision for income taxes 1,135  1,091  1,088  992  1,048 
 Net income 5,288  4,932  4,846  4,450  5,028 
            
Share data:          
 Basic earnings per share$2.62 $2.45 $2.41 $2.21 $2.50 
 Diluted earnings per share 2.61  2.43  2.39  2.19  2.48 
 Dividends declared per share 0.76  0.76  0.76  0.76  0.69 
 Book value per share 80.66  74.24  75.02  73.60  71.63 
 Tangible book value per share 74.23  67.78  68.54  67.09  65.09 
            
 Common shares outstanding, 20,000,000 authorized 2,105,737  2,105,737  2,105,237  2,103,537  2,099,587 
 Treasury shares (90,612) (90,612) (90,612) (90,612) (90,612)
 Common shares, net 2,015,125  2,015,125  2,014,625  2,012,925  2,008,975 
 Average common shares outstanding, net 2,015,125  2,014,936  2,013,607  2,009,782  2,008,839 
            
Balance sheet - average balances:          
 Loans receivable, net$1,520,331 $1,498,257 $1,465,920 $1,415,215 $1,356,369 
 Earning assets 1,749,160  1,718,549  1,672,994  1,606,350  1,520,860 
 Goodwill & intangible assets 12,982  13,031  13,077  13,132  13,186 
 Total assets 1,854,191  1,822,084  1,772,998  1,705,675  1,620,580 
 Demand deposits 476,992  473,373  467,301  495,443  500,624 
 Deposits 1,622,335  1,598,495  1,553,882  1,488,181  1,413,150 
 Borrowings 60,857  51,856  49,965  54,257  52,162 
 Shareholders' equity 152,393  152,720  150,017  148,195  140,800 
            
Ratios:          
 Return on average assets 1.13% 1.07% 1.10% 1.06% 1.23%
 Return on average equity 13.77% 12.81% 12.96% 12.18% 14.16%
 Return on average tangible common equity 15.05% 14.01% 14.19% 13.36% 15.63%
 Yield on earning assets 5.71% 5.59% 5.39% 5.18% 4.91%
 Cost of deposits 2.21% 2.05% 1.76% 1.24% 0.70%
 Cost of funds 2.31% 2.15% 1.86% 1.36% 0.82%
 Net interest margin 3.49% 3.52% 3.61% 3.87% 4.13%
 Efficiency ratio 62.52% 64.74% 63.46% 65.48% 64.21%
            
Asset quality:          
 Net loan charge-offs to average loans 0.08% 0.01% 0.01% 0.01% 0.03%
 Nonperforming loans to gross loans 0.13% 0.14% 0.14% 0.09% 0.07%
 Nonperforming assets to total assets 0.11% 0.11% 0.12% 0.07% 0.06%
 Allowance for loan losses to gross loans 1.16% 1.13% 1.13% 1.13% 1.18%
 ACL + UCL to gross loans 1.25% 1.26% 1.24% 1.22% 1.18%


Heartland BancCorp
Consolidated Balance Sheets
       
                
AssetsDec. 31, 2023 Sep. 30, 2023 Jun. 30, 2023 Mar. 31, 2023 Dec. 31, 2022
 Cash and due from$16,750  $20,993  $16,304  $14,121  $17,543 
 Interest bearing deposits 19,932   24,222   20,017   37,297   5,340 
 Interest bearing time deposits -   -   -   -   - 
 Available-for-sale securities 211,130   179,817   178,031   159,622   152,492 
 Held-to-maturity securities 0   5   5   5   5 
                
 Loans held for sale 1,145   1,706   2,748   1,200   1,345 
                
 Commercial 172,658   169,405   176,972   165,736   162,720 
 CRE (Owner occupied) 295,996   277,092   273,526   285,575   325,820 
 CRE (Nonowner occupied) 501,056   502,012   490,900   468,163   391,461 
 1-4 Family 508,826   499,953   495,578   486,077   461,661 
 Home Equity 51,697   52,466   48,542   44,749   44,526 
 Consumer 18,974   19,857   19,848   18,502   18,245 
 Allowance for credit losses (17,928)  (17,143)  (17,063)  (16,644)  (16,591)
 Net Loans 1,531,279   1,503,642   1,488,303   1,452,158   1,387,842 
                
 Premises and equipment 33,649   33,586   31,919   30,926   30,476 
 Nonmarketable equity securities 6,866   6,863   6,635   6,631   6,627 
 Mortgage servicing rights, net 3,373   3,346   3,208   3,119   3,173 
 Foreclosed assets held for sale 10   0   5   5   5 
 Goodwill 12,388   12,388   12,388   12,388   12,388 
 Intangible Assets 565   613   661   710   765 
 Deferred income taxes 7,087   8,323   6,702   6,157   7,504 
 Life insurance assets 20,315   20,140   20,020   19,903   19,790 
 Accrued interest receivable and other assets 18,661   19,148   18,744   20,848   17,831 
 Total assets$1,883,150  $1,834,792  $1,805,690  $1,765,090  $1,663,126 
                
Liabilities and Shareholders' Equity              
Liabilities              
 Deposits              
 Demand$487,631  $454,764  $462,232  $487,238  $523,036 
 Saving, NOW and money market 711,198   695,106   677,833   685,233   609,676 
 Time 443,772   429,480   418,046   395,525   323,858 
 Total deposits 1,642,601   1,579,350   1,558,111   1,567,996   1,456,570 
 Repurchase agreements 4,583   4,446   4,594   5,095   15,213 
 FHLB Advances 31,000   56,000   50,000   0   6,000 
 Subordinated debt 24,034   24,024   24,213   24,703   24,693 
 Interest payable and other liabilities 18,400   21,377   17,635   19,153   16,741 
 Total liabilities 1,720,618   1,685,197   1,654,553   1,616,947   1,519,217 
                
Shareholders' Equity              
 Common stock, without par value 62,725   62,615   62,473   62,173   61,998 
 Retained earnings 120,064   116,306   112,904   108,962   107,166 
 Accumulated other comprehensive income (expense) (15,263)  (24,332)  (19,246)  (17,998)  (20,261)
 Treasury stock at Cost, Common (4,994)  (4,994)  (4,994)  (4,994)  (4,994)
 Total shareholders' equity 162,532   149,595   151,137   148,143   143,909 
 Total liabilities and shareholders' equity$1,883,150  $1,834,792  $1,805,690  $1,765,090  $1,663,126 



Heartland BancCorp
Consolidated Statements of Income
               
 Three Months Ended
Interest IncomeDec. 31, 2023 Sep. 30, 2023 Jun. 30, 2023 Mar. 31, 2023 Dec. 31, 2022
Loans$22,850 $22,080 $20,609 $18,885 $17,312
Securities              
Taxable 1,374  1,173  928  845  757
Tax-exempt 629  619  596  598  604
Other 342  322  343  193  168
Total interest income 25,195  24,194  22,476  20,521  18,841
Interest Expense              
Deposits 9,017  8,272  6,837  4,564  2,497
Borrowings 790  656  600  616  514
Total interest expense 9,807  8,928  7,437  5,180  3,011
Net Interest Income 15,388  15,266  15,039  15,341  15,830
Provision for Credit Losses 550  500  800  750  480
Net Interest Income After Provision for Credit Losses 14,838  14,766  14,239  14,591  15,350
Noninterest income              
Service charges 1,002  1,020  1,015  975  930
Gains on sale of loans and originated MSR 734  708  704  226  218
Loan servicing fees, net 354  408  337  431  317
Title insurance income 214  196  311  171  237
Increase in cash value of life insurance 175  120  117  114  110
Other 738  780  906  684  675
Total noninterest income 3,217  3,232  3,390  2,601  2,487
Noninterest Expense              
Salaries and employee benefits 7,430  7,393  7,252  7,483  7,474
Net occupancy and equipment expense 1,052  1,057  1,055  1,067  1,004
Software and data processing fees 1,163  1,205  1,069  1,025  939
Professional fees 242  225  288  266  383
Marketing expense 320  271  309  299  250
State financial institution tax 260  259  259  261  339
FDIC insurance premiums 299  341  298  228  104
Other 866  1,224  1,165  1,121  1,268
Total noninterest expense 11,632  11,975  11,695  11,750  11,761
Income before Income Tax 6,423  6,023  5,934  5,442  6,076
Provision for Income Taxes 1,135  1,091  1,088  992  1,048
Net Income$5,288 $4,932 $4,846 $4,450 $5,028
Basic Earnings Per Share$2.62 $2.45 $2.41 $2.21 $2.50
Diluted Earnings Per Share$2.61 $2.43 $2.39 $2.19 $2.48



Heartland BancCorp
Consolidated Statements of Income
       
  Twelve Months Ended
Interest IncomeDec. 31, 2023 Dec. 31, 2022
 Loans$84,424 $57,919
 Securities     
 Taxable 4,320  2,498
 Tax-exempt 2,442  2,346
 Other 1,200  334
 Total interest income 92,386  63,097
Interest Expense     
 Deposits 28,690  4,447
 Borrowings 2,662  1,659
 Total interest expense 31,352  6,106
Net Interest Income 61,034  56,991
Provision for Credit Losses 2,600  1,920
Net Interest Income After Provision for Credit Losses
 58,434  55,071
Noninterest income     
 Service charges 4,012  3,632
 Gains on sale of loans and originated MSR 2,372  1,519
 Loan servicing fees, net 1,530  1,504
 Title insurance income 892  1,177
 Increase in cash value of life insurance 526  408
 Other 3,108  3,141
 Total noninterest income 12,440  11,381
Noninterest Expense     
 Salaries and employee benefits 29,558  28,344
 Net occupancy and equipment expense 4,231  3,920
 Software and data processing fees 4,462  3,663
 Professional fees 1,021  1,044
 Marketing expense 1,199  1,012
 State financial institution tax 1,039  1,130
 FDIC insurance premiums 1,166  371
 Other 4,376  4,741
 Total noninterest expense 47,052  44,225
Income before Income Tax 23,822  22,227
Provision for Income Taxes 4,306  4,156
Net Income$19,516 $18,071
Basic Earnings Per Share$9.69 $9.00
Diluted Earnings Per Share$9.62 $8.90


Heartland BancCorp
ADDITIONAL FINANCIAL INFORMATION         
(Dollars in thousands except per share amounts)(Unaudited)         
          
Asset Quality Ratios and Data: 
 Dec. 31, 2023 Sep. 30, 2023 Jun. 30, 2023 Mar. 31, 2023 Dec. 31, 2022
Nonaccrual loans (excluding restructured loans)$1,621  $1,942  $2,163  $1,140  $700 
Nonaccrual restructured loans -   -   -   -   - 
Loans past due 90 days and still accruing 468   146   -   111   309 
Total nonperforming loans 2,089   2,088   2,163   1,251   1,009 
          
OREO and other non-performing assets 10   -   5   5   5 
Total non-performing assets$2,099  $2,088  $2,168  $1,256  $1,014 
          
Nonperforming loans to gross loans 0.13%  0.14%  0.14%  0.09%  0.07%
Nonperforming assets to total assets 0.11%  0.11%  0.12%  0.07%  0.06%
Allowance for credit losses to gross loans 1.16%  1.13%  1.13%  1.13%  1.18%
Unfunded commitment liability to gross loans 0.09%  0.13%  0.11%  0.09%  - 
ACL + UCL to gross loans 1.25%  1.26%  1.24%  1.22%  1.18%
          
Performing restructured loans (RC-C)$-  $-  $-  $-  $- 
          
Net charge-offs quarter ending$318  $47  $43  $19  $118 

 

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

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Source: Heartland BancCorp

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