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Heartland BancCorp Announces 1st Quarter 2010 Earnings Surpass Prior Year Balance Sheet, Loan...
Heartland BancCorp Announces 1st Quarter 2010 Earnings Surpass Prior Year Balance Sheet, Loan...
29-Apr-2010Heartland BancCorp Announces 1st Quarter 2010 Earnings Surpass Prior Year Balance Sheet, Loan and Shareholders’ Equity Growth Continues
For Immediate Release: April 27, 2010 – 12:00 noon
Contact: Tiney M. McComb – Chairman and CEO Phone: 614-337-4600
Tiney M. McComb, Chairman and CEO of Heartland BancCorp, parent company of Heartland Bank, today reported 1st quarter 2010 net income of $1.1 million or $0.69 per diluted share up 8% over earnings of $983 thousand or $0.64 per diluted share for the 1st quarter of 2009.
Net interest income increased $687 thousand or 16% for the 1st quarter of 2010 over the prior year. The increase in net interest income was due to a 31% decline in the cost of funds partially offset by a 3% decline in interest income. The improved margin reflects the low and stable interest rates in effect during the quarter resulting in the continued downward repricing of funding costs. Non-interest income of $722 thousand for the 1st quarter of 2010 increased $32 thousand or 5% over the prior year quarter.
Operating expenses increased $343 thousand or 10% over 2009 1st quarter levels. The increase in operating expense was due primarily to a $134 thousand or 175% increase in 1st quarter 2010 FDIC insurance cost representing higher premiums passed through to FDIC insured institutions as well as the cost of elective unlimited product insurance coverage over the $250 thousand FDIC maximum on noninterest bearing transaction accounts. Net Loan charge-offs declined 19% during the 1st quarter of 2010 to $283 thousand from $349 thousand for the 1st quarter of 2009 resulting in increasing the allowance for loan loss to $3.5 million at March 31, 2010.
McComb noted, “I am pleased to report strong year over year quarterly earnings growth. Overall, our asset quality remains strong and coupled with the loan and deposit growth, and improved net interest margin, provides the fundamentals for future earnings growth”.
Other Financial highlights for the 1st quarter 2010 compared to the same period in 2009 include:
- Total assets increased $12 million or 2% to $542 million.
- Net loans increased $10.5 million or 3% to $393 million.
- Shareholders’ equity increased $2.6 million or 6% to $44.3 million.
- Book value per share increased $1.76 or 7% to $28.84 per share.
McComb stated, “The economic environment during the past two years has been especially difficult for financial institutions and the overall financial industry. The national media has promoted negative images of the banking industry that unfairly include community-banking institutions that have acted responsibly, amongst money center banks. By far, the community-banking sector has continued to demonstrate integrity and commitment to upholding their traditional customer oriented values and adherence to ethical banking standards. Heartland BancCorp did not participate in government bailout programs such as TARP. Heartland Bank maintains a Well-Capitalized regulatory rating, is financially strong and we continue to focus our efforts to grow responsibly while mitigating risk through adherence to our fundamental and time-tested banking principals. As we emerge from a contracting to an expanding economy we are very encouraged about opportunities to advance our market share as we continue to fulfill the banking needs of the communities we serve”.
“As a result of our continued earnings growth, our Board of Directors declared a 2nd quarter 2010 cash dividend $0.3217 per share payable to shareholders of record June 25, 2010, payable July 10, 2010”.
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 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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