Heartland BancCorp June 30, 2010 Release
23-Jul-2010Heartland BancCorp Announces Jump in 2nd Quarter and
Year-To-Date 2010 Earnings
Directors Declare 3rd Quarter 2010 Cash Dividend
Contact: Tiney M. McComb – Chairman & CEO Phone: 614-337-4600
Tiney M. McComb, Chairman & CEO of Heartland BancCorp, parent company of Heartland Bank, today reported a 40% increase in 2nd quarter 2010 earnings over the prior year 2nd quarter. Net income of $1.038 million or $0.67 per diluted share for the three months ended June 30, 2010 compared to net income of $740 thousand or $0.48 per share for the second quarter of 2009.
Net interest income increased $471 thousand, up 10% for the 2nd quarter of 2010 over the prior year 2nd quarter. The increase in net interest income was due primarily to a 29% decline in the cost of funds partially reduced by a 4% decrease in interest income. The growth in net interest income reflects the historically low interest rates in effect during the year resulting in the continued decline in the cost of funds. Provision for loan loss of $346 thousand during the 2nd quarter 2010 declined 19% from $425 thousand for the 2nd quarter of 2009. Even though 2nd quarter 2010 provision expense was lower than the 2nd quarter of 2009 the allowance for loan loss grew to $3.654 million at June 30, 2010 up 27% above the prior year. Non-interest income of $462 thousand for the 2nd quarter of 2010 increased $69 thousand or 18% over the prior year quarter. Operating expenses increased $201 thousand or 6% over 2009 2nd quarter levels.
Year-to-date 2010 net income increased 22% over the same period in 2009. Net income of $2.104 million or $1.36 per diluted common share compares to earnings of $1.723 million or $1.12 per diluted common share for the first six months of 2009. Net interest income after provision expense was $9.198 million for the first six months of 2010, up 11% compared to $8.261 million for the same period in 2009. The increase in net interest income was due to a 30% decrease in interest expense on deposits and borrowed funds partially offset by a 4% decline in interest income on earning assets both as a result of lower interest rates during the first half of 2010 compared to 2009. Non-interest income totaled $1.184 million, up 9% in 2010 compared to $1.082 million for 2009. Non-interest or operating expense of $7.464 million increased by $545 thousand or 8% in 2010 over $6.919 million for the 1st 6 months of 2009.
McComb noted, “I am pleased to report higher year-over-year quarterly and year-to-date earnings supported by a strong net interest margin and other operating income providing strong core earnings growth. Heartland BancCorp continues to maintain a “well capitalized” capital position supported by solid core earnings and liquidity. I am particularly encouraged to report Heartland’s solid year-over- year growth in shareholders’ equity. Heartland BancCorp’s book value per share of $29.50 represents a 9% increase over the prior year. Heartland Bank’s Leverage, Tier 1 risk-based and Total Risk-based capital ratios total 8.37%, 11.85% and 12.82 respectively at June 30, 2010, and continue higher than the same time in 2009.”
Other financial highlights for the first half of 2010 include:
- Total assets increased to $531 million.
- Net loans receivable increased to $396 million.
- Book value per share increased $2.46 or 9 % to $29.50
- Shareholders’ equity increased by $3.2 million or 9% to $45.3 million.
During their July 2010 meeting, the Directors of Heartland BancCorp declared a 3rd quarter 2010 cash dividend of $0.3217 per share to shareholders of record September 25, 2010, payable October 10, 2010. “Based on the closing price of our common stock on June 30, 2010, this dividend represents an annualized dividend yield of 5.85%. This dividend further underscores our commitment to our investors for the confidence they have demonstrated through their continued investment in Heartland BancCorp. While it is too early to predict the implications of recent financial regulation I believe the community bank sector, representing the backbone of our financial system, provides us the greatest opportunity for our continued success. As we look forward we continue our focus on balanced growth, attentive risk management practices, maintaining asset quality and operational efficiency while striving to exceed our customer’s expectations. Achievement of these goals enables us to reward our shareholders, our customers and our employees.”
Heartland Bank provides a complete line of loan and deposit products from short to long term, and are 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 internet banking at www.heartlandbank.com.
Heartland BancCorp is a registered Ohio bank holding company and the parent of Heartland Bank, which operates eleven full-service banking offices. Alternative investment services are provided through Infinex Financial Group. 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.
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