Heartland BancCorp Announces 2012 Earnings

GAHANNA, Ohio, Jan. 22, 2013 /PRNewswire/ -- G. Scott McComb, Chairman & CEO of Heartland BancCorp, parent company of Heartland Bank, today announced 2012 earnings.  Net income for the year ended December 31, 2012 increased 32% or $1.630 million to $6.699 million or $4.31 per share compared to earnings of $5.069 million or $3.27 per share for the prior year ended December 31, 2011.  Net interest income, before provision for loan loss for 2012, increased 3% to $21.737 million compared to $21.128 million for 2011.  Provision for loan loss of $3.386 million, up $797 thousand for the full year 2012 compares to $2.589 million for all of 2011.  The increase in the provision during 2012 was used to increase the Bank's allowance for loan loss to 1.35% of gross loans outstanding as of December 31, 2012 compared to 1.03% at the end of 2011. This increase in the allowance strengthens Heartland BancCorp's financial position during this period of continued uncertainty in the economy and its impact on borrower's ability to repay their loans. Total non-interest income of $5.220 million in 2012 increased $2.193 million or 72% compared to $3.027 million for 2011.  Higher non-interest income in 2012 was due to the receipt of $2.162 million of net key man life insurance proceeds from the loss of Heartland BancCorp's former chairman during 2012. Non-interest or operating expense of $15.348 million in 2012 increased 5% from $14.650 million in 2011.

Earnings for the 4th quarter ended December 31, 2012 totaled $785 thousand or $0.50 per share compared to earnings of $1.228 million or $0.79 per share for the 4th quarter of 2011.  Net interest income before provision for loan loss was $5.691 million up 8% or $401 thousand from the prior year amount of $5.290 million.  Provision for loan loss increased to $1.980 million during the 4th quarter of 2012 up $1.230 million over provision expense of $750 thousand in the 4th quarter of 2011.  The increase in provision expense provided for future loan growth and enhances the allowance should future loan losses materialize. Net interest income after the provision for loan loss totaled $3.711 million for the fourth quarter 2012 down 18 % from $4.539 million for the prior year 4th quarter.  Non-interest income for the 4th quarter of 2012 was $1.096 million, up 35% compared to $809 thousand for the same period in 2011.  Non-interest or operating expense was $3.945 million up 15% from $3.705 million for the 4th quarter 2011.

Total assets outstanding increased to $579 million at year-end 2012, an increase of $7.578 million compared to assets outstanding of $571 million at the end of 2011. Net loans outstanding increased to $396 million, up 2% compared to net loans of $387 million at the end of 2011.  On the funding side, we are pleased to report that transaction accounts increased $21 million or 9% year over year improving our mix of transaction verses time deposits.  Deposit growth in non-interest bearing transaction accounts increased $12 million or 19% ending the year at $74.2 million compared to $62.6 million at the end of 2011.   Savings deposits including interest bearing savings transaction accounts increased 5% to $183.2 million an increase of $9.3 million compared to $173.9 million at the end of 2011.  Total shareholders' equity grew to $55.725 million, up 10% from $50.755 million at year-end 2011. Based upon shares outstanding the book value of shareholders' equity increased 10% from $33.00 at year-end 2011 to $36.15 per share at December 31, 2012.

"Heartland BancCorp again posted quality earnings in 2012, with net income topping $6.7 million, well above earnings of 2011 marking another successful year for Heartland BancCorp.   Our capital position and earnings rose to new highs, while we continued to focus on ways to maintain our high level of customer service by enhancing our delivery systems and branch network.  As we begin 2013, we believe we have positioned our bank with the fundamentals to extend our growth and prosperity.  We remain confident in our strategies for the present as well as for the long term.   Our strong capital position provides us with increased flexibility to pursue growth opportunities and actions to improve shareholder value. We believe loan demand will continue to strengthen from an improving economy once the uncertainty of the fiscal obligations of our government have been addressed," said McComb.  

In recognition of the accomplishments during 2012 the Board of Directors declared a 1st quarter 2013 cash dividend of $0.3217 per share to shareholders of record March 25, 2013 payable April 10, 2013  resulting in an annual dividend yield of 4.37% based on the closing price of our shares at December 31, 2012.  

Heartland BancCorp is a registered Ohio bank holding company and the parent of Heartland Bank, which operates eleven full-service banking offices. Heartland Bank, founded in 1911, provides full-service commercial, small business, and consumer banking services; alternative investment services; insurance services; and other financial products and services. Heartland Bank provides a complete line of loan and deposit products accessible from any of our banking offices and ATMs, as well as from home or office using Heartland's telephone banking at 416-BANK or worldwide access at www.heartlandbank.com 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 over-the-counter (OTC) Bulletin Board Service under the symbol HLAN. Learn more about Heartland Bank at HeartlandBank.com.



Heartland BancCorp

Earnings Profile

Fourth Quarter and Year-to-Date

December 31, 2012 and 2011

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Net Interest Income (after provision)



Non-Interest Income



Net Income



Basic Earnings Per Share



Diluted Earnings Per Share



Full Year

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Non-Interest Income



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 Contact: G. Scott McComb – Chairman & CEO, Phone: 614-337-4600

SOURCE Heartland BancCorp


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