(Other OTC:HLAN),(OTC US:HLAN),
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 |
