Heartland BancCorp Earns $3.9 Million, or $1.94 Per Diluted Share, in the Second Quarter of 2022; Declares Quarterly Cash Dividend of $0.69 per Share

Rhea-AI Summary

Heartland BancCorp (OTCQX: HLAN) reported a net income of $3.9 million, or $1.94 per diluted share, for Q2 2022, down from $4.2 million in Q2 2021. Year-to-date earnings reached $8.0 million. The company declared a quarterly cash dividend of $0.69 per share, payable on October 11, 2022. Loan portfolio growth was notable, with gross loans climbing 15.5% year-over-year, reaching $1.21 billion. The net interest margin expanded to 3.92%, despite a decline in noninterest income. Credit quality remained strong with nonperforming loans at 0.12%.

Positive

• Net income of $3.9 million in Q2 2022, despite a year-over-year decline.
• Quarterly cash dividend of $0.69 per share announced.
• Gross loans increased by 15.5% year-over-year to $1.21 billion.
• Net interest margin expanded to 3.92%, benefiting from higher interest rates.

Negative

• Net income decreased from $4.2 million in Q2 2021 to $3.9 million in Q2 2022.
• Noninterest income decreased by 4.9% to $3.0 million compared to Q2 2021.
• Shareholders' equity decreased to $141.9 million from $146.5 million a year ago.

WHITEHALL, Ohio, July 19, 2022 (GLOBE NEWSWIRE) -- Heartland BancCorp (“Heartland” and “the Company”) (OTCQX: HLAN), parent company of Heartland Bank (“Bank”), today reported net income of $3.9 million, or $1.94 per diluted share in the second quarter of 2022, compared to $4.2 million, or $2.06 per diluted share in the second quarter of 2021, and $4.0 million, or $1.99 per diluted share, in the preceding quarter. Results for the second quarter of 2022 reflect lower interest and fees on Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) loans compared to the prior quarter and the year ago quarter, due to slowing PPP loan forgiveness as the program nears its conclusion. In the first six months of 2022, net income was $8.0 million, or $3.93 per diluted share, compared to $8.8 million, or $4.35 per diluted share, in the first six months of 2021.

The company announced that its board of directors declared a quarterly cash dividend of $0.69 per share. The dividend will be payable October 11, 2022, to shareholders of record as of September 24, 2022. Heartland has paid regular quarterly cash dividends since 1993.

“The highlights of the second quarter included substantial growth in the loan portfolio and the resulting net interest margin expansion,” stated G. Scott McComb, Chairman, President and Chief Executive Officer. “We continue to benefit from our strong core deposit base to fund loan activity; as a result, the cost of funds has remained flat despite rising interest rates. Additionally, we made progress in building out our presence in the Cincinnati market during the quarter. We entered that market organically towards the end of the year, and our efforts are already paying off, contributing to second quarter loan growth and revenues. With our skilled banking teams in place, combined with strong economic factors in our greater Columbus, northern Kentucky and Cincinnati markets, we are well positioned for continued growth going forward.”

Second Quarter Financial Highlights (at or for the three months ended June 30, 2022)

• Net income was $3.9 million, or $1.94 per diluted share, compared to $4.2 million, or $2.06 per diluted share, in the second quarter of 2021.
• Provision for loan losses was $480,000, which was unchanged compared to the second quarter a year ago.
• Net interest margin expanded nine basis points to 3.92%, compared to 3.83% in the preceding quarter and improved 54 basis points compared to 3.38% in the second quarter a year ago.
• Second quarter revenues (net interest income plus noninterest income) increased 5.0% to $16.2 million, compared to $15.4 million in the second quarter a year ago.
• Annualized return on average assets was 1.10%, compared to 1.09% in the second quarter of 2021.
• Annualized return on average tangible common equity was 11.97%, compared to 12.84% in the second quarter a year ago.
• Excluding Paycheck Protection Program (PPP) loans, gross loans increased 15.5% to $1.21 billion at June 30, 2022, compared to $1.05 billion a year ago.
• Credit quality remains pristine, with nonperforming loans to gross loans of 0.12% and nonperforming assets to total assets of 0.10% at June 30, 2022.
• Tangible book value was $64.06 per share, compared to $66.53 per share a year ago.
• Declared a quarterly cash dividend of $0.69 per share.

Balance Sheet Review

Assets

Total assets decreased nominally to $1.50 billion at June 30, 2022, compared to $1.51 billion a year earlier, and increased 2.8% compared to $1.45 billion three months earlier. The slight decrease compared to the prior year was the due to both PPP loan forgiveness and a reduction in excess liquidity, which offset core loan growth. Heartland’s loan-to-deposit ratio was 91.8% at June 30, 2022, compared to 90.6% at March 31, 2022, and 87.3% at June 30, 2021.

Liquidity levels continued to decline, with interest bearing deposits in other banks at $35.6 million, representing 2.5% of interest-earning assets as of June 30, 2022, compared to 8.0% at June 30, 2021.

Average earning assets were $1.35 billion in the second quarter of 2022 and in the first quarter of 2021, and $1.45 billion in the second quarter a year ago. The average yield on interest-earning assets was 4.17% in the second quarter of 2022, up 10 basis points from 4.07% in the preceding quarter and up 43 basis points from 3.74% in the second quarter a year ago.

Loan Portfolio

Over the course of the SBA PPP, Heartland originated 1,845 PPP loans, or $199.0 million in loans, and generated total PPP loan fees receivable of approximately $8.6 million. As of June 30, 2022, Heartland had received forgiveness from the SBA for $195.8 million. Approximately $132,000 of the income recognized during the second quarter of 2022 was related to recognizing origination fees for PPP loan payoffs or forgiveness, compared to $347,000 of income recognized during the first quarter of 2022, and $368,000 of income recognized during the second quarter of 2021. The balance of net unamortized PPP fees remaining to be recognized in fee income over the life of the associated loans, was $62,000 as of June 30, 2022.

“Core loan growth was robust during the second quarter, increasing 5.4% over the prior quarter end, or 21.6% annualized. We had great activity in the 1-4 family loan segment as well as in owner occupied CRE. Additionally, our loan pipeline remains strong, and we are replacing PPP loans with higher yielding loans, which is helping our net interest margin expand,” said Ben Babcanec, EVP and Chief Operating Officer.

The total loan portfolio increased substantially during the quarter, even with $5.7 million in PPP loan forgiveness during the quarter. Excluding PPP loans, gross loans increased 5.4% to $1.21 billion at June 30, 2022, compared to $1.15 billion at March 31, 2022, and increased 15.5% compared to $1.05 billion a year earlier. Including PPP loans, net loans were $1.20 billion at June 30, 2022, which was a 4.9% increase compared to $1.14 billion at March 31, 2022, and a 5.3% increase compared to $1.13 billion at June 30, 2021.

Commercial loans decreased 38.9% from year ago levels to $134.0 million, and comprise 11.1% of the total loan portfolio at June 30, 2022. The decrease was primarily due to the $99.7 million reduction in PPP loan balances compared to a year ago. Owner occupied commercial real estate loans (CRE) increased 11.2% to $306.5 million at June 30, 2022, compared to a year ago, and comprise 25.3% of the total loan portfolio. Non-owner occupied CRE loans increased 18.4% to $346.9 million, compared to a year ago, and comprise 28.6% of the total loan portfolio at June 30, 2022. 1-4 family residential real estate loans increased 17.7% from year ago levels to $370.4 million and represent 30.6% of total loans. Home equity loans increased 6.2% from year ago levels to $37.7 million and represent 3.1% of total loans, and consumer loans increased 53.5% from year ago levels to $15.3 million and represent 1.3% of the total loan portfolio at June 30, 2022.

Deposits

Total deposits were $1.30 billion at June 30, 2022, a 3.6% increase compared to $1.26 billion at March 31, 2022. Total deposits were unchanged compared to a year earlier, largely due to the reduction in CD’s as the Bank continues to focus on shifting its deposit mix to gathering and retaining low-cost deposits. “We were able to capitalize on our excess liquidity and improve our deposit mix, remaining focused on using low-cost deposits to fund new loan growth,” said Babcanec. At June 30, 2022, noninterest bearing demand deposit accounts increased 10.7% compared to a year ago and represented 37.6% of total deposits; savings, NOW and money market accounts increased 4.1% compared to a year ago and represented 46.6% of total deposits, and CDs decreased 24.7% compared to a year ago and comprised 15.9% of total deposits. The average cost of deposits was 0.16% in the second quarter of 2022, compared to 0.15% in the first quarter of 2022, and 0.27% in the second quarter of 2021.

Shareholders’ Equity

Shareholders’ equity was $141.9 million at June 30, 2022, compared to $147.7 million three months earlier and $146.5 million a year earlier. The decrease in shareholders’ equity during the current quarter was primarily due to a $8.5 million decrease in accumulated other comprehensive income related to an increase in the unrealized loss on available for sale securities reflecting the increase in market interest rates during the current quarter. At June 30, 2022, Heartland’s tangible book value was $64.06 per share, compared to $66.92 at March 31, 2022, and $66.53 at June 30, 2021.

Heartland continues to maintain capital levels in excess of the requirements to be categorized as “well-capitalized” with tangible equity to tangible assets of 8.68% at June 30, 2022, compared to 9.32% at March 31, 2022, and 8.89% at June 30, 2021.

Operating Results

In the second quarter of 2022, Heartland generated a ROAA of 1.10% and a ROAE of 10.87%, compared to 1.14% and 10.66%, respectively, in the first quarter of 2022 and 1.09% and 11.63%, respectively, in the second quarter a year ago.

Net Interest Income/Net Interest Margin

Net interest income, before the provision for loan losses, increased 7.6% to $13.2 million in the second quarter of 2022, compared to $12.2 million in the second quarter a year ago, and increased 2.9% compared to $12.8 million in the preceding quarter. Interest income benefitted from the amortization of PPP loan fees and the full recognition of the deferred PPP loan fees upon forgiveness by the SBA. During the second quarter of 2022, Heartland received $5.7 million in loan forgiveness through the SBA, compared to $18.7 million in loan forgiveness during the prior quarter, resulting in total net PPP fee income of $132,000 and $347,000, respectively. As of June 30, 2022, there was $62,000 of net deferred PPP fee income remaining. In the first six months of 2022, net interest income increased 6.8% to $26.0 million, compared to $24.3 million in the first six months of 2021.

Total revenues (net interest income, before the provision for loan losses, plus noninterest income) was $16.2 million in the second quarter, a 5.0% increase compared to $15.4 million in the second quarter a year ago, and a nominal increase compared to $16.1 million in the preceding quarter. Year-to-date, total revenues increased 3.4% to $32.2 million, compared to $31.2 million in the same period a year earlier.

Heartland’s net interest margin expanded nine basis points to 3.92% in the second quarter of 2022, compared to 3.83% in the preceding quarter and improved by 54 basis points compared to 3.38% in the second quarter of 2021. “Our net interest margin for the quarter benefitted from strong net interest income generation, robust loan growth and rising interest rates. New core loans that carry a higher interest rate are replacing lower rate PPP loans, which is helping our net interest margin expand compared to a year ago,” said Carrie Almendinger, EVP, and Chief Financial Officer. “We believe we are well positioned for additional interest rate increases, with a low-cost core deposit base and strong balance sheet liquidity to support continued loan demand.”

“Our strategy of patience in deploying excess liquidity in the investment portfolio is starting to benefit us as we continue to ladder into significantly higher yielding securities over the next few quarters,” said McComb.

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 March 31, 2022.^*

Provision for Loan Losses

“We have a very solid risk management culture in place, and continue to make additions to the allowance for loan losses to reflect the steady level of new loan growth,” said McComb.

Heartland recorded a $480,000 provision for loan losses in the second quarter of 2022, which was the same amount recorded in both the preceding quarter and the year ago quarter.

Noninterest Income

Noninterest income decreased 4.9% to $3.0 million in the second quarter of 2022, compared to $3.2 million in the second quarter a year ago, and decreased 7.8% compared to $3.3 million in the preceding quarter. Gains on sale of loans, and originated mortgage servicing rights, decreased 46.5% to $431,000 in the second quarter of 2022, compared to $805,000 in the second quarter a year ago, and decreased 36.9% compared to $683,000 in the preceding quarter. In the first six months of 2022, noninterest income decreased 8.6% to $6.3 million, compared to $6.9 million in the first six months of 2021.

“The mortgage market continues to be strong for mortgage originations through the second quarter of 2022, although we’ve seen volumes make their way on to the balance sheet leading to lower gains on sale,” said Almendinger.

Noninterest Expense

Heartland’s second quarter noninterest expenses totaled $10.8 million, compared to $10.6 million in the preceding quarter and $9.8 million in the second quarter a year ago. Salary and employee benefit expenses, the largest component of noninterest expense, were $6.8 million in the second quarter of 2022, compared to $6.9 million in the first quarter of 2022 and $5.6 million in the second quarter of 2021. “The increase in noninterest expenses compared to the year ago quarter is primarily a result of our expansion into the Cincinnati market during the fourth quarter of 2021 and a $1.5 million reduction of deferred PPP loan costs from the second quarter of 2021,” said Almendinger. “By expanding into the Cincinnati market organically, with a seasoned leader who has been established in that market for years, we have begun to broaden our client base and our operations without a significant increase to operating expenses.” Year-to-date, noninterest expense totaled $21.4 million, compared to $19.4 million in the first six months of 2021.

The efficiency ratio for the second quarter of 2022 was 66.9%, compared to 65.9% for the preceding quarter and 63.6% for the second quarter of 2021.

Income Tax Provision

In the second quarter of 2022, Heartland recorded $933,000 in state and federal income tax expense for an effective tax rate of 19.2%, compared to $952,000, or 19.1% in the first quarter of 2022 and $942,000 or 18.4% in the second quarter a year ago.

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*As of March 31, 2022, the Dow Jones U.S. MicroCap Bank Index tracked 155 banks with total common market capitalization under $250 million for the following ratios: NIM* of 3.17%.

Credit Quality

“We are beginning to step up our risk mitigation process due to inflation concerns and rising interest rates, and are implementing all the necessary procedures to ensure we are well positioned for all economic cycles,” said McComb.

At June 30, 2022, the allowance for loan losses (ALLL) was $15.9 million, or 1.32% of total loans, compared to $15.5 million, or 1.34% of total loans at March 31, 2022, and $13.9 million, or 1.21% of total loans a year ago. As of June 30, 2022, the ALLL represented 1,316.1% of nonaccrual loans, compared to 1,636.7% three months earlier and 488.1% one year earlier.

Nonaccrual loans were $1.2 million at June 30, 2022, compared to $944,000 at March 31, 2022, and decreased 57.4% when compared to $2.8 million at June 30, 2021. Heartland had net loan charge-offs of $5,000 at June 30, 2022. This compared to $5,000 in net loan recoveries at March 31, 2022, and $1.3 million in net loan charge-offs at June 30, 2021. There was $245,000 in loans past due 90 days and still accruing at June 30, 2022, compared to $383,000 at March 31, 2022, and $359,000 at June 30, 2021.

Heartland’s performing restructured loans, that were not included in nonaccrual loans, totaled $4.5 million at June 30, 2022, compared to $5.1 million at March 31, 2022. Borrowers who are in financial difficulty, and who have been granted concessions, including interest rate reductions, term extensions, or payment alterations, are categorized as restructured loans.

There was $5,000 in other real estate owned and other non-performing assets on the books at June 30, 2022, unchanged from three months earlier and one year earlier. Non-performing assets (NPAs), consisting of non-performing loans and loans past due 90 days or more, was $1.5 million, or 0.10% of total assets inclusive of PPP loans, at June 30, 2022, compared to $1.3 million, or 0.09% of total assets, at March 31, 2022, and decreased 54.4% when compared to $3.2 million, or 0.21% of total assets a year ago.

About Heartland BancCorp

Heartland BancCorp is a registered Ohio bank holding company and the parent of Heartland Bank, which operates 18 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 May of 2022, Heartland was ranked #112 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, 2021.

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) the benefits of a merger between Heartland Bank and Victory Community Bank, including future financial and operating results, cost savings enhancements to revenue and accretion to reported earnings that may be realized from the merger; (ii) Heartland’s plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts; and (iii) 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; (6) the impact of the coronavirus (COVID-19) pandemic on the employees and customers of Heartland, as well as the resulting effect on the business, financial condition and results of operations on Heartland; and (7) 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:	Jun. 30, 2022			Mar. 31, 2022				Dec. 31, 2021				Sep. 30, 2021				Jun. 30, 2021
Interest income	$	13,993			$	13,611			$	14,337			$	13,912			$	13,541
Interest expense		832				819				925				1,126				1,309
Net interest income		13,161				12,792				13,412				12,786				12,232
Provision for loan losses		480				480				480				480				480
Noninterest income		3,012				3,268				3,797				3,635				3,168
Noninterest expense		10,824				10,589				10,407				9,917				9,789
Provision for income taxes		933				952				1,299				1,265				942
Net income		3,936				4,039				5,023				4,759				4,189
Share data:
Basic earnings per share	$	1.96			$	2.02			$	2.51			$	2.38			$	2.10
Diluted earnings per share		1.94				1.99				2.48				2.34				2.06
Dividends declared per share		0.69				0.69				0.63				0.63				0.63
Book value per share		70.66				73.56				76.42				74.91				73.29
Tangible book value per share		64.06				66.92				69.74				68.20				66.53
Common shares outstanding, 20,000,000 authorized		2,098,962				2,098,562				2,094,787				2,094,037				2,089,987
Treasury shares		(90,612	)			(90,612	)			(90,612	)			(90,612	)			(90,612	)
Common shares, net		2,008,350				2,007,950				2,004,175				2,003,425				1,999,375
Average common shares outstanding, net		2,008,154				2,004,901				2,003,784				2,000,839				1,995,900
Balance sheet - average balances:
Loans receivable, net	$	1,164,191			$	1,153,203			$	1,160,267			$	1,148,103			$	1,148,225
PPP loans		6,094				17,889				44,321				81,932				111,667
Earning assets		1,345,041				1,354,627				1,378,244				1,396,127				1,452,502
Goodwill & intangible assets		13,295				13,355				13,409				13,470				13,537
Total assets		1,437,003				1,442,050				1,461,752				1,481,787				1,540,047
Deposits		1,237,620				1,238,275				1,248,971				1,270,425				1,328,153
Borrowings		42,459				39,000				47,192				50,042				55,080
Shareholders' equity		145,218				153,591				151,620				148,306				144,381
Ratios:
Return on average assets		1.10	%			1.14	%			1.36	%			1.27	%			1.09	%
Return on average equity		10.87	%			10.66	%			13.14	%			12.73	%			11.63	%
Return on average tangible common equity		11.97	%			11.68	%			14.42	%			14.00	%			12.84	%
Yield on earning assets		4.17	%			4.07	%			4.13	%			3.95	%			3.74	%
Cost of deposits		0.16	%			0.15	%			0.17	%			0.22	%			0.27	%
Cost of funds		0.26	%			0.26	%			0.28	%			0.34	%			0.38	%
Net interest margin		3.92	%			3.83	%			3.86	%			3.63	%			3.38	%
Efficiency ratio		66.94	%			65.94	%			60.48	%			60.39	%			63.57	%
Asset quality:
Net loan charge-offs to average loans		0.00	%			0.00	%			-0.05	%			0.00	%			0.44	%
Nonperforming loans to gross loans		0.12	%			0.11	%			0.14	%			0.24	%			0.28	%
Nonperforming assets to total assets		0.10	%			0.09	%			0.11	%			0.22	%			0.21	%
Allowance for loan losses to gross loans		1.32	%			1.34	%			1.28	%			1.25	%			1.21	%

Heartland BancCorp
Consolidated Balance Sheets
Assets	Jun. 30, 2022				Mar. 31, 2022				Dec. 31, 2021				Sep. 30, 2021				Jun. 30, 2021
Cash and due from	$	18,139			$	16,698			$	10,469			$	14,985			$	12,925
Interest bearing deposits		35,583				56,284				54,415				50,370				114,042
Interest bearing time deposits		-				-				-				283				281
Available-for-sale securities		154,505				150,674				156,505				166,187				159,683
Held-to-maturity securities		49				49				49				202				202
Loans held for sale		655				2,573				4,648				3,013				1,221
Commercial		134,033				142,925				154,182				179,776				219,421
CRE (Owner occupied)		306,507				285,287				288,261				274,368				275,727
CRE (Non Owner occupied)		346,905				346,326				358,713				326,919				292,955
1-4 Family		370,444				331,255				322,558				319,662				314,630
Home Equity		37,740				35,948				36,250				36,106				35,527
Consumer		15,343				13,218				12,620				11,118				9,995
Allowance for loan losses		(15,925	)			(15,450	)			(14,965	)			(14,352	)			(13,867	)
Net Loans		1,195,047				1,139,508				1,157,619				1,133,597				1,134,390
Premises and equipment		30,516				29,583				29,410				29,495				29,937
Nonmarketable equity securities		6,032				6,028				6,024				6,024				6,024
Mortgage serving rights, net		3,268				3,261				3,096				2,882				2,665
Foreclosed assets held for sale		5				5				5				5				5
Goodwill		12,388				12,388				12,388				12,388				12,388
Intangible Assets		874				929				990				1,052				1,113
Deferred income taxes		1,404				1,404				1,404				929				929
Life insurance assets		18,314				18,218				18,120				18,019				17,919
Accrued interest receivable and other assets		19,083				17,023				13,967				14,964				15,456
Total assets	$	1,495,862			$	1,454,626			$	1,469,109			$	1,454,396			$	1,509,179
Liabilities and Shareholders' Equity
Liabilities
Deposits
Demand	$	489,172			$	500,733			$	478,893			$	440,531			$	441,836
Saving, NOW and money market		606,534				578,633				588,959				577,831				582,782
Time		206,632				178,000				188,193				223,534				274,336
Total deposits		1,302,338				1,257,366				1,256,045				1,241,896				1,298,954
Repurchase agreements		14,525				8,275				9,032				10,060				9,754
FHLB Advances		0				0				12,000				14,000				17,000
Subordinated debt		24,672				24,661				24,651				24,641				24,630
Interest payable and other liabilities		12,413				16,628				14,223				13,717				12,312
Total liabilities		1,353,948				1,306,930				1,315,951				1,304,314				1,362,650
Shareholders' Equity
Common stock, without par value		61,641				61,488				61,231				61,039				60,917
Retained earnings		99,841				97,294				94,638				90,874				87,370
Accumulated other comprehensive income (expense)		(14,574	)			(6,091	)			2,283				3,164				3,237
Treasury stock at Cost, Common		(4,994	)			(4,994	)			(4,994	)			(4,994	)			(4,994	)
Total shareholders' equity		141,914				147,696				153,158				150,082				146,529
Total liabilities and shareholders' equity	$	1,495,862			$	1,454,626			$	1,469,109			$	1,454,396			$	1,509,179

Heartland BancCorp
Consolidated Statements of Income
	Three Months Ended
Interest Income	Jun. 30, 2022			Mar. 31, 2022			Dec. 31, 2021			Sep. 30, 2021			Jun. 30, 2021
Loans	$	12,778		$	12,544		$	13,251		$	12,826		$	12,484
Securities
Taxable		586			471			467			448			437
Tax-exempt		578			574			586			589			580
Other		51			22			33			49			40
Total interest income		13,993			13,611			14,337			13,912			13,541
Interest Expense
Deposits		484			454			523			715			886
Borrowings		348			365			402			411			423
Total interest expense		832			819			925			1,126			1,309
Net Interest Income		13,161			12,792			13,412			12,786			12,232
Provision for Loan Losses		480			480			480			480			480
Net Interest Income After Provision for Loan Losses		12,681			12,312			12,932			12,306			11,752
Noninterest income
Service charges		916			861			834			812			692
Gains on sale of loans and originated MSR		431			683			1,339			1,048			805
Loan servicing fees, net		311			509			462			463			223
Title insurance income		346			290			313			421			382
Net realized gains on sales of available-for-sale securities		-			-			-			-			-
Increase in cash value of life insurance		96			98			101			101			99
Other		912			827			748			790			967
Total noninterest income		3,012			3,268			3,797			3,635			3,168
Noninterest Expense
Salaries and employee benefits		6,819			6,905			6,520			6,318			5,550
Net occupancy and equipment expense		960			994			948			981			966
Software and data processing fees		907			833			801			778			1,027
Professional fees		247			233			262			230			263
Marketing expense		247			259			218			275			279
State financial institution tax		257			277			313			167			309
FDIC insurance premiums		94			69			128			60			85
Other		1,293			1,019			1,217			1,108			1,310
Total noninterest expense		10,824			10,589			10,407			9,917			9,789
Income before Income Tax		4,869			4,991			6,322			6,024			5,131
Provision for Income Taxes		933			952			1,299			1,265			942
Net Income	$	3,936		$	4,039		$	5,023		$	4,759		$	4,189
Basic Earnings Per Share	$	1.96		$	2.02		$	2.51		$	2.38		$	2.10
Diluted Earnings Per Share	$	1.94		$	1.99		$	2.48		$	2.34		$	2.06

Heartland BancCorp
Consolidated Statements of Income
	Six Months Ended
Interest Income	Jun. 30, 2022			Jun. 30, 2021
Loans	$	25,322		$	25,230
Securities
Taxable		1,057			761
Tax-exempt		1,152			1,181
Other		73			88
Total interest income		27,604			27,260
Interest Expense
Deposits		938			2,016
Borrowings		713			935
Total interest expense		1,651			2,951
Net Interest Income		25,953			24,309
Provision for Loan Losses		960			960
Net Interest Income After Provision for Loan Losses		24,993			23,349
Noninterest income
Service charges		1,777			1,265
Gains on sale of loans and originated MSR		1,114			2,355
Loan servicing fees, net		820			428
Title insurance income		636			700
Net realized gains on sales of available-for-sale securities		-			223
Increase in cash value of life insurance		194			198
Other		1,739			1,699
Total noninterest income		6,280			6,868
Noninterest Expense
Salaries and employee benefits		13,724			10,754
Net occupancy and equipment expense		1,954			1,986
Software and data processing fees		1,740			1,785
Professional fees		480			641
Marketing expense		506			555
State financial institution tax		534			624
FDIC insurance premiums		163			213
Other		2,312			2,845
Total noninterest expense		21,413			19,403
Income before Income Tax		9,860			10,814
Provision for Income Taxes		1,885			2,001
Net Income	$	7,975		$	8,813
Basic Earnings Per Share	$	3.97		$	4.42
Diluted Earnings Per Share	$	3.93		$	4.35

Heartland BancCorp
ADDITIONAL FINANCIAL INFORMATION
(Dollars in thousands except per share amounts)(Unaudited)
Asset Quality Ratios and Data:
		Jun. 30, 2022				Mar. 31, 2022				Dec. 31, 2021				Sep. 30, 2021				Jun. 30, 2021
Nonaccrual loans (excluding restructured loans)		$	949			$	659			$	1,333			$	1,657			$	1,748
Nonaccrual restructured loans			261				285				285				1,093				1,093
Loans past due 90 days and still accruing			245				383				16				-				359
Total non-performing loans			1,455				1,327				1,634				2,750				3,200
OREO and other non-performing assets			5				5				5				5				5
Total non-performing assets		$	1,460			$	1,332			$	1,639			$	2,755			$	3,205
Nonperforming loans to gross loans			0.12%				0.11%				0.14%				0.24%				0.28%
Nonperforming assets to total assets			0.10%				0.09%				0.11%				0.22%				0.21%
Allowance for loan losses to gross loans			1.32%				1.34%				1.28%				1.25%				1.21%
Performing restructured loans (RC-C)		$	4,519			$	5,106			$	5,119			$	610			$	621
Net charge-offs quarter ending		$	5			$	(5	)		$	(133	)		$	(6	)		$	1,263

 

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

FAQ

What was Heartland BancCorp's net income for Q2 2022?

Heartland BancCorp reported a net income of $3.9 million for Q2 2022.

When will the dividend be paid by Heartland BancCorp?

The dividend will be payable on October 11, 2022.

What is the dividend amount declared by Heartland BancCorp?

Heartland BancCorp declared a quarterly cash dividend of $0.69 per share.

How much did Heartland BancCorp's gross loans increase year-over-year?

Gross loans increased by 15.5% year-over-year to $1.21 billion.

What was Heartland BancCorp's net interest margin for Q2 2022?

The net interest margin expanded to 3.92% for Q2 2022.