Heartland BancCorp Announces 1st Quarter 2013 Earnings

GAHANNA, Ohio, April 12, 2013 /PRNewswire/ -- G. Scott McComb, Chairman and CEO of Heartland BancCorp, parent company of Heartland Bank, today reported 1^st quarter 2013 net income of $1.091 million or $0.70 per diluted share compared to earnings of $1.276 million or $0.82 per diluted share for the 1^st quarter of 2012.

Earnings for the 1^st quarter of 2013 as compared with the 1st quarter of 2012 reflect lower interest income, down $383 thousand or 6% partially offset by lower interest expense down $210 thousand or 17% for 2013 compared to the prior year. Provision for loan loss for the 1^st quarter 2013 totaled $555 thousand, up 24% or $109 thousand higher than provision of $446 thousand recorded in the 1st quarter 2012.  Net interest income after provision for loan loss declined $282 thousand or 6% in 2013 compared to the 1^st quarter 2012. The allowance for loan loss increased to $5.7 million up 39% compared to $4.1 million at March 31, 2012. The allowance totaled 1.42% of gross loans outstanding an increase of 33% compared to 1.07% as of 3/31/2012.  Included in interest expense in the 1^st quarter of 2013 is $162 thousand representing the premium paid to redeem $3,000,000 of 10.60% Capital Securities issued through one of Heartland BancCorp's subsidiaries as part of a pooled offering during September 2000.  These securities became eligible for early redemption on September 7, 2010 and were redeemed on March 7, 2013 with a redemption premium of 4.24%. It is projected that the cost of this redemption will be recovered in approximately six months and will be accretive to Heartland BancCorp's earnings thereafter.  

Non-interest income of $851 thousand for the 1^st quarter of 2013 increased $16 thousand or 2% over the prior year 1st quarter.  Operating expenses for 2013 increased $56 thousand or 1% compared to the 1^st quarter of 2012.

Other Financial highlights for the 1^st quarter 2013 compared to the same period in 2012 include:

• Net loans increased 3% or $10 million to $396 million,
• Interest bearing and non-interest bearing transaction deposit accounts increased $20 million in 2013 over 2012 representing an increase of 8% in 2013.
• Shareholders' equity increased $4.3 million or 8% to $55.9 million,
• Book value per share increased to $36.23 as of March 31, 2013 up 8% from $33.49 in 2012.

McComb stated that "Heartland BancCorp had a very good start to the year.  Even though 1^st quarter earnings were negatively impacted by the early redemption of our capital securities we will eliminate a 10.60% borrowing cost that will positively impact earnings for the remainder of this year and beyond. Consistent quality earnings enabled us to retire this expensive capital. Protecting our net interest margin and growing our franchise with quality assets remains our primary objective.  We are pleased that our capital strength supports our plans for continued growth". 

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 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.

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

SOURCE Heartland BancCorp