Heartland BancCorp Earns $5.1 Million, or $2.50 Per Diluted Share, in the Third Quarter of 2022; Declares Quarterly Cash Dividend of $0.69 per Share

WHITEHALL, Ohio, Oct. 25, 2022 (GLOBE NEWSWIRE) — Heartland BancCorp (�Heartland” and “the Company”) (OTCQX: HLAN), parent company of Heartland Bank (“Bank”), today reported net income of $5.1 million, or $2.50 per diluted share in the third quarter of 2022, compared to $4.8 million, or $2.34 per diluted share in the third quarter of 2021, and $3.9 million, or $1.94 per diluted share, in the preceding quarter. In the first nine months of 2022, net income was $13.0 million, or $6.43 per diluted share, compared to $13.6 million, or $6.69 per diluted share, in the first nine 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 January 10, 2023, to shareholders of record as of December 25, 2022. Heartland has paid regular quarterly cash dividends since 1993.

“Our third quarter 2022 operating results reflect another quarter of substantial growth in the loan portfolio and the resulting net interest margin expansion,” stated G. Scott McComb, Chairman, President and Chief Executive Officer. “Loan growth has really started to materialize across all lending segments over the last few quarters due to several different strategies. We have been able to capitalize on displacement within our markets by bringing on talented bankers and lending officers from other institutions. We’ve also seen prepayments start to stabilize due to the rising rate environment, which has had a meaningful impact on net loan growth. During the third quarter we had excellent growth in the Columbus market, and loan prospects and new customer development are really starting to materialize in the Cincinnati market as well. With our skilled associates in place, combined with strong economic factors in all of our markets, we are well positioned for continued growth for the remainder of the year.”

Third Quarter 2022 Financial Highlights (at or for the three months ended September 30, 2022)

• Net income was $5.1 million, or $2.50 per diluted share, compared to $4.8 million, or $2.34 per diluted share, in the third quarter of 2021.
• Provision for loan losses was $480,000, which was unchanged compared to the third quarter a year ago.
• Net interest margin expanded 28 basis points to 4.20%, compared to 3.92% in the preceding quarter and improved 57 basis points compared to 3.63% in the third quarter a year ago.
• Third quarter revenues (net interest income plus noninterest income) increased 8.5% to $17.8 million, compared to $16.4 million in the third quarter a year ago.
• Annualized return on average assets was 1.31%, compared to 1.27% in the third quarter of 2021.
• Annualized return on average tangible common equity was 15.27%, compared to 14.00% in the third quarter a year ago.
• Net loans increased 14.8% to $1.30 billion at September 30, 2022, compared to $1.13 billion a year ago.
• Credit quality remains pristine, with nonperforming loans to gross loans of 0.08% and nonperforming assets to total assets of 0.07%, at September 30, 2022.
• Tangible book value was $62.90 per share, compared to $68.20 per share a year ago.
• Declared a quarterly cash dividend of $0.69 per share.

Balance Sheet Review

Assets

Total assets increased 8.3% to $1.58 billion at September 30, 2022, compared to $1.45 billion a year earlier, and increased 5.3% compared to $1.50 billion three months earlier. Heartland’s loan-to-deposit ratio was 96.4% at September 30, 2022, compared to 91.8% at June 30, 2022, and 91.3% at September 30, 2021.

Excess liquidity levels continued to decline, with interest bearing deposits in other banks at $5.3 million, compared to $50.4 million a year earlier and $35.6 million three months earlier.

Average earning assets were $1.44 billion in the third quarter of 2022, compared to $1.35 billion in the second quarter of 2022, and $1.40 billion in the third quarter a year ago. The average yield on interest-earning assets was 4.60% in the third quarter of 2022, up 43 basis points from 4.17% in the preceding quarter and up 65 basis points from 3.95% in the third quarter a year ago.

Loan Portfolio

“We had record loan production during the third quarter, increasing $106.0 million, or 8.9% over the prior quarter end, with great activity across nearly every loan segment, including 1-4 family loans, owner occupied CRE, non owner occupied CRE, home equity and consumer loans,” said Ben Babcanec, EVP and Chief Operating Officer. “Additionally, loan growth was diversified within our Columbus and Cincinnati markets.”

Net loans were $1.30 billion at September 30, 2022, which was an 8.9% increase compared to $1.20 billion at June 30, 2022, and a 14.8% increase compared to $1.13 billion at September 30, 2021. Commercial loans decreased 15.9% from year ago levels to $151.2 million, and comprise 11.5% of the total loan portfolio at September 30, 2022. The decrease was primarily due to the $59.5 million reduction in PPP loan balances compared to a year ago. Owner occupied commercial real estate loans (CRE) increased 17.9% to $323.4 million at September 30, 2022, compared to a year ago, and comprise 24.5% of the total loan portfolio. Non-owner occupied CRE loans increased 14.2% to $373.5 million, compared to a year ago, and comprise 28.4% of the total loan portfolio at September 30, 2022. 1-4 family residential real estate loans increased 29.1% from year ago levels to $412.7 million and represent 31.3% of total loans. Home equity loans increased 11.5% from year ago levels to $40.3 million and represent 3.1% of total loans, and consumer loans increased 46.9% from year ago levels to $16.3 million and represent 1.2% of the total loan portfolio at September 30, 2022.

Deposits

Total deposits were $1.35 billion at September 30, 2022, a 3.6% increase compared to $1.30 billion at June 30, 2022, and an 8.7% increase compared to $1.24 billion at September 30, 2021. “We have been diligent with our deposit pricing, and remain focused on using low-cost deposits to fund new loan growth,” said Babcanec. At September 30, 2022, noninterest bearing demand deposit accounts increased 8.1% compared to a year ago and represented 35.3% of total deposits; savings, NOW and money market accounts increased 10.6% compared to a year ago and represented 47.4% of total deposits, and CDs increased 4.7% compared to a year ago and comprised 17.3% of total deposits. The average cost of deposits was 0.30% in the third quarter of 2022, compared to 0.16% in the second quarter of 2022, and 0.22% in the third quarter of 2021.

Shareholders’ Equity

Shareholders’ equity was $139.5 million at September 30, 2022, compared to $141.9 million three months earlier and $150.1 million a year earlier. The decrease in shareholders’ equity during the current quarter was primarily due to a $6.2 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 September 30, 2022, Heartland’s tangible book value was $62.90 per share, compared to $64.06 at June 30, 2022, and $68.20 at September 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 8.09% at September 30, 2022, compared to 8.68% at June 30, 2022, and 9.48% at September 30, 2021.

Operating Results

In the third quarter of 2022, Heartland generated a ROAA of 1.31% and a ROAE of 13.88%, compared to 1.10% and 10.87%, respectively, in the second quarter of 2022 and 1.27% and 12.73%, respectively, in the third quarter a year ago.

Net Interest Income/Net Interest Margin

Net interest income, before the provision for loan losses, increased 18.9% to $15.2 million in the third quarter of 2022, compared to $12.8 million in the third quarter a year ago, and increased 15.6% compared to $13.2 million in the preceding quarter. Net interest income benefitted from higher yielding assets and the current rate environment. Also impacting third quarter 2022 results was a $490,000 recovery of nonaccrual interest on problem credits that were worked out during the quarter. In addition, approximately $30,000 of the income recognized during the third quarter of 2022 was related to recognizing origination fees for PPP loan payoffs or forgiveness, compared to $132,000 recognized during the second quarter of 2022, and $788,000 recognized during the third quarter of 2021. In the first nine months of 2022, net interest income increased 11.0% to $41.2 million, compared to $37.1 million in the first nine months of 2021.

Total revenues (net interest income, before the provision for loan losses, plus noninterest income) was $17.8 million in the third quarter, an 8.5% increase compared to $16.4 million in the third quarter a year ago, and a 10.2% increase compared to $16.2 million in the preceding quarter. Year-to-date, total revenues increased 5.2% to $50.1 million, compared to $47.6 million in the same period a year earlier.

Heartland’s net interest margin expanded 28 basis points to 4.20% in the third quarter of 2022, compared to 3.92% in the preceding quarter and improved by 57 basis points compared to 3.63% in the third quarter of 2021. “Our net interest margin for the third quarter benefitted from strong net interest income generation, robust loan growth and rising interest rates. New 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 were patient with deploying excess liquidity into higher yielding assets, and have been very disciplined with deposit pricing, which is contributing to our net interest margin expansion.”

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 June 30, 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 third quarter of 2022, which was the same amount recorded in both the preceding quarter and the year ago quarter.

_________________
*As of June 30, 2022, the Dow Jones U.S. MicroCap Bank Index tracked 154 banks with total common market capitalization under $250 million for the following ratios: NIM* of 3.42%.

Noninterest Income

Noninterest income decreased 28.1% to $2.6 million in the third quarter of 2022, compared to $3.6 million in the third quarter a year ago, and decreased 13.2% compared to $3.0 million in the preceding quarter. Gains on sale of loans, and originated mortgage servicing rights, decreased 82.2% to $187,000 in the third quarter of 2022, compared to $1.0 million in the third quarter a year ago, and decreased 56.6% compared to $431,000 in the preceding quarter. In the first nine months of 2022, noninterest income decreased 15.3% to $8.9 million, compared to $10.5 million in the first nine months of 2021.

“The mortgage market continues to be strong for mortgage originations through the third quarter of 2022, although we’ve seen volumes make their way on to the balance sheet leading to lower gains on sale,” said Almendinger. “However, good activity in debit and credit card interchange income contributed $572,000 to third quarter noninterest income.”

Noninterest Expense

Heartland’s third quarter noninterest expenses totaled $11.1 million, compared to $10.8 million in the preceding quarter and $9.9 million in the third quarter a year ago. Salary and employee benefit expenses, the largest component of noninterest expense, were $7.1 million in the third quarter of 2022, compared to $6.8 million in the preceding quarter and $6.3 million in the third quarter of 2021. “We continue to build out our team in the Cincinnati market that we entered near the end of last year,” 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 $32.5 million, compared to $29.3 million in the first nine months of 2021.

The efficiency ratio for the third quarter of 2022 was 62.0%, compared to 66.9% for the preceding quarter and 60.4% for the third quarter of 2021.

Income Tax Provision

In the third quarter of 2022, Heartland recorded $1.2 million in state and federal income tax expense for an effective tax rate of 19.4%, compared to $933,000, or 19.2% in the second quarter of 2022 and $1.3 million or 21.0% in the third quarter a year ago.

Credit Quality

At September 30, 2022, the allowance for loan losses (ALLL) was $16.2 million, or 1.23% of total loans, compared to $15.9 million, or 1.32% of total loans at June 30, 2022, and $14.4 million, or 1.25% of total loans a year ago. As of September 30, 2022, the ALLL represented 2,322% of nonaccrual loans, compared to 1,316% three months earlier and 522% one year earlier.

Nonaccrual loans were $699,000 at September 30, 2022, compared to $1.2 million at June 30, 2022, and decreased 74.6% when compared to $2.8 million at September 30, 2021. Heartland had net loan charge-offs of $176,000 at September 30, 2022. This compared to $5,000 in net loan charge-offs at June 30, 2022, and $6,000 in net loan recoveries at September 30, 2021. There was $404,000 in loans past due 90 days and still accruing at September 30, 2022, compared to $245,000 at June 30, 2022. There were no loans past due 90 days and still accruing at September 30, 2021.

Heartland’s performing restructured loans, that were not included in nonaccrual loans, totaled $3.1 million at September 30, 2022, compared to $4.5 million at June 30, 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 September 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 $1.1 million, or 0.07% of total assets, at September 30, 2022, compared to $1.5 million, or 0.10% of total assets, at June 30, 2022, and decreased 59.8% when compared to $2.8 million, or 0.22% 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 19 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:	Sep. 30, 2022			Jun. 30, 2022			Mar. 31, 2022			Dec. 31, 2021			Sep. 30, 2021
Interest income	$	16,652		$	13,993		$	13,611		$	14,337		$	13,912
Interest expense		1,444			832			819			925			1,126
Net interest income		15,208			13,161			12,792			13,412			12,786
Provision for loan losses		480			480			480			480			480
Noninterest income		2,614			3,012			3,268			3,797			3,635
Noninterest expense		11,053			10,824			10,589			10,407			9,917
Provision for income taxes		1,223			933			952			1,299			1,265
Net income		5,068			3,936			4,039			5,023			4,759
Share data:
Basic earnings per share	$	2.53		$	1.96		$	2.02		$	2.51		$	2.38
Diluted earnings per share		2.50			1.94			1.99			2.48			2.34
Dividends declared per share		0.69			0.69			0.69			0.63			0.63
Book value per share		69.48			70.66			73.56			76.42			74.91
Tangible book value per share		62.90			64.06			66.92			69.74			68.20
Common shares outstanding, 20,000,000 authorized		2,098,962			2,098,962			2,098,562			2,094,787			2,094,037
Treasury shares		(90,612	)		(90,612	)		(90,612	)		(90,612	)		(90,612	)
Common shares, net		2,008,350			2,008,350			2,007,950			2,004,175			2,003,425
Average common shares outstanding, net		2,008,350			2,008,154			2,004,901			2,003,784			2,000,839
Balance sheet – average balances:
Loans receivable, net	$	1,261,695		$	1,164,191		$	1,153,203		$	1,160,267		$	1,148,103
PPP loans		2,234			6,094			17,889			44,321			81,932
Earning assets		1,437,508			1,345,041			1,354,627			1,378,244			1,396,127
Goodwill & intangible assets		13,241			13,295			13,355			13,409			13,470
Total assets		1,530,675			1,437,003			1,442,050			1,461,752			1,481,787
Deposits		1,323,645			1,237,620			1,238,275			1,248,971			1,270,425
Borrowings		49,409			42,459			39,000			47,192			50,042
Shareholders’ equity		144,873			145,218			153,591			151,620			148,306
Ratios:
Return on average assets		1.31	%		1.10	%		1.14	%		1.36	%		1.27	%
Return on average equity		13.88	%		10.87	%		10.66	%		13.14	%		12.73	%
Return on average tangible common equity		15.27	%		11.97	%		11.68	%		14.42	%		14.00	%
Yield on earning assets		4.60	%		4.17	%		4.07	%		4.13	%		3.95	%
Cost of deposits		0.30	%		0.16	%		0.15	%		0.17	%		0.22	%
Cost of funds		0.42	%		0.26	%		0.26	%		0.28	%		0.34	%
Net interest margin		4.20	%		3.92	%		3.83	%		3.86	%		3.63	%
Efficiency ratio		62.02	%		66.94	%		65.94	%		60.48	%		60.39	%
Asset quality:
Net loan charge-offs to average loans		0.06	%		0.00	%		0.00	%		-0.05	%		-0.00	%
Nonperforming loans to gross loans		0.08	%		0.12	%		0.11	%		0.14	%		0.24	%
Nonperforming assets to total assets		0.07	%		0.10	%		0.09	%		0.11	%		0.22	%
Allowance for loan losses to gross loans		1.23	%		1.32	%		1.34	%		1.28	%		1.25	%

Heartland BancCorp
Consolidated Balance Sheets
Assets	Sep. 30, 2022				Jun. 30, 2022				Mar. 31, 2022				Dec. 31, 2021				Sep. 30, 2021
Cash and due from	$	21,705			$	18,139			$	16,698			$	10,469			$	14,985
Interest bearing deposits		5,263				35,583				56,284				54,415				50,370
Interest bearing time deposits		–				–				–				–				283
Available-for-sale securities		149,458				154,505				150,674				156,505				166,187
Held-to-maturity securities		49				49				49				49				202
Loans held for sale		717				655				2,573				4,648				3,013
Commercial		151,154				134,033				142,925				154,182				179,776
CRE (Owner occupied)		323,390				306,507				285,287				288,261				274,368
CRE (Non Owner occupied)		373,491				346,905				346,326				358,713				326,919
1-4 Family		412,690				370,444				331,255				322,558				319,662
Home Equity		40,253				37,740				35,948				36,250				36,106
Consumer		16,337				15,343				13,218				12,620				11,118
Allowance for loan losses		(16,229	)			(15,925	)			(15,450	)			(14,965	)			(14,352	)
Net Loans		1,301,086				1,195,047				1,139,508				1,157,619				1,133,597
Premises and equipment		30,496				30,516				29,583				29,410				29,495
Nonmarketable equity securities		6,623				6,032				6,028				6,024				6,024
Mortgage serving rights, net		3,228				3,268				3,261				3,096				2,882
Foreclosed assets held for sale		5				5				5				5				5
Goodwill		12,388				12,388				12,388				12,388				12,388
Intangible Assets		819				874				929				990				1,052
Deferred income taxes		7,587				6,134				2,877				1,404				929
Life insurance assets		19,680				18,314				18,218				18,120				18,019
Accrued interest receivable and other assets		16,038				14,353				15,550				13,967				14,964
Total assets	$	1,575,142			$	1,495,862			$	1,454,626			$	1,469,109			$	1,454,396
Liabilities and Shareholders’ Equity
Liabilities
Deposits
Demand	$	476,379			$	489,172			$	500,733			$	478,893			$	440,531
Saving, NOW and money market		639,161				606,534				578,633				588,959				577,831
Time		234,046				206,632				178,000				188,193				223,534
Total deposits		1,349,586				1,302,338				1,257,366				1,256,045				1,241,896
Repurchase agreements		7,830				7,525				8,275				9,032				10,060
FHLB Advances		39,000				7,000				0				12,000				14,000
Subordinated debt		24,682				24,672				24,661				24,651				24,641
Interest payable and other liabilities		14,506				12,413				16,628				14,223				13,717
Total liabilities		1,435,604				1,353,948				1,306,930				1,315,951				1,304,314
Shareholders’ Equity
Common stock, without par value		61,769				61,641				61,488				61,231				61,039
Retained earnings		103,524				99,841				97,294				94,638				90,874
Accumulated other comprehensive income (expense)		(20,761	)			(14,574	)			(6,091	)			2,283				3,164
Treasury stock at Cost, Common		(4,994	)			(4,994	)			(4,994	)			(4,994	)			(4,994	)
Total shareholders’ equity		139,538				141,914				147,696				153,158				150,082
Total liabilities and shareholders’ equity	$	1,575,142			$	1,495,862			$	1,454,626			$	1,469,109			$	1,454,396

Heartland BancCorp
Consolidated Statements of Income
	Three Months Ended
Interest Income	Sep. 30, 2022			Jun. 30, 2022			Mar. 31, 2022			Dec. 31, 2021			Sep. 30, 2021
Loans	$	15,285		$	12,778		$	12,544		$	13,251		$	12,826
Securities
Taxable		684			586			471			467			448
Tax-exempt		590			578			574			586			589
Other		93			51			22			33			49
Total interest income		16,652			13,993			13,611			14,337			13,912
Interest Expense
Deposits		1,012			484			454			523			715
Borrowings		432			348			365			402			411
Total interest expense		1,444			832			819			925			1,126
Net Interest Income		15,208			13,161			12,792			13,412			12,786
Provision for Loan Losses		480			480			480			480			480
Net Interest Income After Provision for Loan Losses		14,728			12,681			12,312			12,932			12,306
Noninterest income
Service charges		925			916			861			834			812
Gains on sale of loans and originated MSR		187			431			683			1,339			1,048
Loan servicing fees, net		367			311			509			462			463
Title insurance income		304			346			290			313			421
Net realized gains on sales of available-for-sale securities		–			–			–			–			–
Increase in cash value of life insurance		104			96			98			101			101
Other		727			912			827			748			790
Total noninterest income		2,614			3,012			3,268			3,797			3,635
Noninterest Expense
Salaries and employee benefits		7,146			6,819			6,905			6,520			6,318
Net occupancy and equipment expense		962			960			994			948			981
Software and data processing fees		984			907			833			801			778
Professional fees		181			247			233			262			230
Marketing expense		256			247			259			218			275
State financial institution tax		257			257			277			313			167
FDIC insurance premiums		104			94			69			128			60
Other		1,161			1,293			1,019			1,217			1,108
Total noninterest expense		11,051			10,824			10,589			10,407			9,917
Income before Income Tax		6,291			4,869			4,991			6,322			6,024
Provision for Income Taxes		1,223			933			952			1,299			1,265
Net Income	$	5,068		$	3,936		$	4,039		$	5,023		$	4,759
Basic Earnings Per Share	$	2.53		$	1.96		$	2.02		$	2.51		$	2.38
Diluted Earnings Per Share	$	2.50		$	1.94		$	1.99		$	2.48		$	2.34

Heartland BancCorp
Consolidated Statements of Income
	Nine Months Ended
Interest Income	Sep. 30, 2022			Sep. 30, 2021
Loans	$	40,608		$	38,055
Securities
Taxable		1,740			1,209
Tax-exempt		1,742			1,771
Other		166			136
Total interest income		44,256			41,171
Interest Expense
Deposits		1,950			2,731
Borrowings		1,145			1,346
Total interest expense		3,095			4,077
Net Interest Income		41,161			37,094
Provision for Loan Losses		1,440			1,440
Net Interest Income After Provision for Loan Losses		39,721			35,654
Noninterest income
Service charges		2,702			2,077
Gains on sale of loans and originated MSR		1,301			3,404
Loan servicing fees, net		1,187			891
Title insurance income		940			1,121
Net realized gains on sales of available-for-sale securities		–			223
Increase in cash value of life insurance		298			298
Other		2,466			2,489
Total noninterest income		8,894			10,503
Noninterest Expense
Salaries and employee benefits		20,869			17,072
Net occupancy and equipment expense		2,916			2,968
Software and data processing fees		2,723			2,563
Professional fees		661			871
Marketing expense		762			831
State financial institution tax		790			791
FDIC insurance premiums		266			273
Other		3,477			3,953
Total noninterest expense		32,464			29,322
Income before Income Tax		16,151			16,835
Provision for Income Taxes		3,108			3,266
Net Income	$	13,043		$	13,569
Basic Earnings Per Share	$	6.50		$	6.80
Diluted Earnings Per Share	$	6.43		$	6.69

Heartland BancCorp
ADDITIONAL FINANCIAL INFORMATION
(Dollars in thousands except per share amounts) (Unaudited)
Asset Quality Ratios and Data:
		Sep. 30, 2022				Jun. 30, 2022				Mar. 31, 2022				Dec. 31, 2021				Sep. 30, 2021
Nonaccrual loans (excluding restructured loans)		$	699			$	949			$	659			$	1,333			$	1,657
Nonaccrual restructured loans			–				261				285				285				1,093
Loans past due 90 days and still accruing			404				245				383				16				–
Total non-performing loans			1,103				1,455				1,327				1,634				2,750
OREO and other non-performing assets			5				5				5				5				5
Total non-performing assets		$	1,108			$	1,460			$	1,332			$	1,639			$	2,755
Nonperforming loans to gross loans			0.08%				0.12%				0.11%				0.14%				0.24%
Nonperforming assets to total assets			0.07%				0.10%				0.09%				0.11%				0.22%
Allowance for loan losses to gross loans			1.23%				1.32%				1.34%				1.28%				1.25%
Performing restructured loans (RC-C)		$	3,148			$	4,519			$	5,106			$	5,119			$	610
Net charge-offs quarter ending		$	176			$	5			$	(5	)		$	(133	)		$	(6	)

 

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