HEARTLAND BANC CORP - HLAN STOCK NEWS

German American Bancorp (GABC) and Heartland BancCorp (HLAN) have announced a definitive merger agreement. Heartland shareholders will receive 3.90 shares of GABC stock for each HLAN share in an all-stock, tax-free exchange. The deal values Heartland at approximately $330.2 million, or $155.37 per share. Post-merger, the combined entity will have over $8.1 billion in assets and nearly 95 branches across Indiana, Kentucky, and Ohio.

The merger will expand German American's footprint into Columbus and Cincinnati, two of the Midwest's fastest-growing markets. The transaction is expected to be materially accretive to GABC's earnings per share within 12 months of completion. The deal is anticipated to close in the first quarter of 2025, subject to regulatory and shareholder approvals.

Heartland BancCorp (OTCQX: HLAN) reported a 5.0% increase in net income to $5.1 million ($2.50 per diluted share) for Q2 2024, compared to $4.8 million ($2.39 per share) in Q2 2023. For the first six months of 2024, net income rose 9.4% to $10.2 million ($5.01 per share) from $9.3 million ($4.58 per share) in H1 2023. The board declared a quarterly dividend of $0.759 per share, payable on October 10, 2024, to shareholders as of September 25, 2024.

Financial highlights include:

• Net loans increased 1.3% to $1.53 billion
• Total deposits grew 1.0% to $1.65 billion
• Net interest margin was 3.31%
• No provision for credit losses

Heartland's credit quality remains strong, with nonperforming loans at 0.13% of gross loans. Total assets increased 6.3% to $1.92 billion. Shareholder equity rose 2.4% to $167.7 million, with a tangible book value of $76.81 per share.

Heartland BancCorp (OTCQX: HLAN), parent company of Heartland Bank, announced the election of Diana L. Turoff, CPA, to its Board of Directors, effective May 21, 2024. Turoff, who also joined the Heartland Bank Board in March 2024, brings over 25 years of experience in housing, real estate, finance, and accounting. She has held leadership roles in both for-profit and nonprofit sectors, notably serving as President and CEO of Finance Fund, a Community Development Financial Institution (CDFI). Turoff aims to leverage her expertise to assist small businesses and individuals through Heartland's specialized banking services.

Heartland BancCorp (OTCQX: HLAN) reported a net income of $4.5 million, or $2.19 per diluted share, for Q1 2023, an increase from $4.0 million or $1.99 per diluted share in Q1 2022. This marks a slight decline compared to $5.0 million in Q4 2022. The Board declared a quarterly cash dividend of $0.759 per share, payable on July 10, 2023, to shareholders on record as of June 25, 2023. Total assets grew 21.3% to $1.77 billion year-over-year, with loans up 4.6% to $1.45 billion. Nonperforming loans remain low at 0.09% of gross loans. However, the net interest margin decreased to 3.87%, from 4.13% in Q4 2022 due to rising funding costs.