Heartland BancCorp Earns $5.1 Million, or $2.51 per Diluted Share, in the First Quarter of 2024; Declares Quarterly Cash Dividend of $0.759 per Share

Heartland BancCorp

WHITEHALL, Ohio, April 16, 2024 (GLOBE NEWSWIRE) -- Heartland BancCorp (“Heartland” and “the Company”) (OTCQX: HLAN), parent company of Heartland Bank (“Bank”), today reported net income increased 14.2% to $5.1 million, or $2.51 per diluted share, in the first quarter of 2024, compared to $4.5 million, or $2.19 per diluted share, in the first quarter of 2023, and decreased 3.9% compared to $5.3 million, or $2.61 per diluted share, in the preceding quarter.

The company also announced that its board of directors declared a quarterly cash dividend of $0.759 per share. The dividend will be payable July 10, 2024, to shareholders of record as of June 25, 2024. Heartland has paid regular quarterly cash dividends since 1993.

“Our first quarter operating performance continued to reflect the success of our community banking strategy, which produced solid earnings, improved operating efficiencies and pristine credit quality,” stated G. Scott McComb, Chairman, President and Chief Executive Officer. “Net loan balances decreased modestly during the first quarter, largely due to a few large loan payoffs coupled with lighter production related to our efforts to slow down loan production near the end of 2023. Despite stiff competition in our markets, we continue to focus on maintaining our credit metrics while remaining disciplined on loan pricing, with newly funded loans having a weighted rate of 8.11% during the first quarter.”

“Our performance continues to be fueled by our market footprints in Columbus and Greater Cincinnati,” said McComb. “Our new branch in Delaware County, just north of Columbus, is realizing a strong start, and we continue to look for ways to expand our market outreach into other surrounding areas.”

First Quarter 2024 Financial Highlights (at or for the three months ended March 31, 2024)

• Net income was $5.1 million, or $2.51 per diluted share, compared to $4.5 million, or $2.19 per diluted share, in the first quarter of 2023.

• Heartland recorded no provision for credit losses during the first quarter of 2024, compared to $750,000 for the first quarter a year ago.

• Net interest margin was 3.37%, compared to 3.49% in the preceding quarter and 3.87% in the first quarter a year ago.

• First quarter revenues (net interest income plus noninterest income) increased modestly to $18.0 million, compared to $17.9 million in the first quarter a year ago.

• Annualized return on average assets was 1.09%, compared to 1.06% in the first quarter of 2023.

• Annualized return on average tangible common equity was 13.59%, compared to 13.36% in the first quarter a year ago.

• Net loans decreased modestly during the quarter to $1.51 billion at March 31, 2024, compared to $1.53 billion three months earlier.

• Total deposits decreased modestly during the quarter to $1.63 billion at March 31, 2024, compared to $1.64 billion three months earlier.

• Credit quality remains pristine with nonperforming loans to gross loans of 0.13% and nonperforming assets to total assets of 0.10% at March 31, 2024.

• Tangible book value increased 11.6% to $74.88 per share, compared to $67.09 per share a year ago.

• Declared a quarterly cash dividend of $0.759 per share.
  

Balance Sheet Review
Assets
Total assets increased 6.4% to $1.88 billion at March 31, 2024, compared to $1.77 billion a year earlier, and remained unchanged compared to three months earlier. Heartland’s loan-to-deposit ratio was 92.8% at March 31, 2024, compared to 93.2% at December 31, 2023, and 92.6% at March 31, 2023.

Securities increased 39.5% to $222.6 million at March 31, 2024, compared to $159.6 million a year earlier, and increased 5.4% compared to $211.1 million three months earlier. Securities comprise 11.9% of total assets at March 31, 2024, compared to 11.2% three months prior and 9.0% a year ago.

“We’ve continued to grow the investment portfolio, increasing our asset base liquidity during the quarter to 9.10% of assets, compared to 5.85% a year earlier, which has been a strategic focus over the past year,” said Carrie Almendinger, EVP and Chief Financial Officer.

Average earning assets increased to $1.78 billion in the first quarter of 2024, compared to $1.75 billion in the fourth quarter of 2023, and $1.61 billion in the first quarter a year ago. The average yield on interest-earning assets was 5.80% in the first quarter of 2024, up nine basis points from 5.71% in the preceding quarter, and up 62 basis points from 5.18% in the first quarter a year ago.

Loan Portfolio
“While we continued to moderate loan growth during the quarter, an increase in loan payoffs resulted in net loans decreasing 1.2% over the prior quarter end, while average loans remained nearly unchanged compared to the prior quarter,” said Ben Babcanec, EVP and Chief Operating Officer. “While loan demand has been stable, we remain disciplined with loan pricing which is resulting in slower growth.”

Net loans were $1.51 billion at March 31, 2024, compared to $1.53 billion at December 31, 2023, and a 4.1% increase compared to $1.45 billion at March 31, 2023. Commercial loans increased modestly from year ago levels to $166.4 million, and comprise 10.9% of the total loan portfolio at March 31, 2024. Owner occupied commercial real estate loans (CRE) increased 2.8% to $293.5 million at March 31, 2024, compared to a year ago, and comprise 19.2% of the total loan portfolio. Nonowner occupied CRE loans increased 4.6% to $489.7 million, compared to a year ago, and comprise 32.0% of the total loan portfolio at March 31, 2024. 1-4 family residential real estate loans increased 4.4% from year-ago levels to $507.4 million and represent 33.2% of total loans. Home equity loans increased 21.1% from year-ago levels to $54.2 million and represent 3.5% of total loans, while consumer loans increased 1.9% from year-ago levels to $18.9 million and represent 1.2% of the total loan portfolio at March 31, 2024.

Deposits
Total deposits were $1.63 billion at March 31, 2024, a modest decrease, compared to $1.64 billion at December 31, 2023, and a $60.7 million, or 3.9% increase, compared to $1.57 billion at March 31, 2023. “Average deposits increased $17.6 million, or 1.1%, to $1.64 billion in the first quarter of 2024 compared to the preceding quarter, with the growth primarily in money market and CD accounts,” said Babcanec. “We are focused on nurturing client relationships while still being more selective with deposit pricing.”

At March 31, 2024, noninterest bearing demand deposit accounts decreased 13.9% compared to a year ago and represented 25.8% of total deposits; savings, NOW and money market accounts increased 3.0% compared to a year ago and represented 43.3% of total deposits; and CDs increased 27.1% compared to a year ago and comprised 30.9% of total deposits. The average cost of deposits was 2.45% in the first quarter of 2024, compared to 2.21% in the fourth quarter of 2023 and 1.24% in the first quarter of 2023.

Shareholders’ Equity
Shareholders’ equity increased modestly to $163.8 million at March 31, 2024, compared to $162.5 million three months earlier and increased 10.6% compared to $148.1 million a year earlier. At March 31, 2024, Heartland’s tangible book value was $74.88 per share compared to $74.23 at December 31, 2023, and $67.09 at March 31, 2023.

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 March 31, 2024, compared to 8.00% at December 31, 2023, and 7.71% at March 31, 2023.

Liquidity
Heartland had ample sources of available liquidity as of March 31, 2024, including a $220 million line of credit at the Federal Home Loan Bank, as well as additional credit lines of $120 million. Nearly 70% of Heartland’s client deposit balances were FDIC insured or collateralized as of March 31, 2024.

Operating Results
In the first quarter of 2024, Heartland generated a ROAA of 1.09% and a ROATCE of 13.59%, compared to 1.13% and 15.05%, respectively, in the fourth quarter of 2023 and 1.06% and 13.36%, respectively, in the first quarter a year ago.

Net Interest Income/Net Interest Margin
Net interest income, before the provision for credit losses, decreased 3.1% to $14.9 million in the first quarter of 2024, compared to $15.3 million in the first quarter a year ago, and decreased 3.4% compared to $15.4 million in the preceding quarter.

Total revenues (net interest income, before the provision for credit losses, plus noninterest income) were $18.0 million in the first quarter of 2024, a modest increase compared to $17.9 million in the first quarter a year ago, and a 3.4% decrease compared to $18.6 million in the preceding quarter.

Heartland’s net interest margin was 3.37% in the first quarter of 2024, compared to 3.49% in the preceding quarter and 3.87% in the first quarter of 2023. “The largest driver in our net interest margin decline during the quarter was the shift in noninterest bearing DDA balances into higher yielding deposit accounts, which was more than anticipated. Fortunately, noninterest DDA balances still comprise a large portion of our total deposit mix, representing 25.8% of total deposits at March 31, 2024,” said Almendinger. “While we are preparing for moderate deposit pricing pressure over the next quarter as some CDs will reprice, we believe we are near the bottom of the cycle and anticipate our net interest margin should start to rebound during the second half of 2024.”

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 December 31, 2023.^*

Provision for Credit Losses
Due to pristine credit quality, low net loan charge offs and negative loan growth, Heartland recorded no provision for credit losses in the first quarter of 2024. This compared to a $550,000 provision for credit losses in the fourth quarter of 2023, and a $750,000 provision for credit losses in the first quarter of 2023.

*As of December 31, 2023, the Dow Jones U.S. MicroCap Bank Index tracked 178 banks with total common market capitalization under $250 million for the following ratios: NIM* of 3.20%.

Noninterest Income
Noninterest income increased 19.9% to $3.1 million in the first quarter of 2024, compared to $2.6 million in the first quarter a year ago, and decreased 3.0% compared to $3.2 million in the preceding quarter. Gains on sale of loans and originated mortgage servicing rights increased 129.2% to $518,000 in the first quarter of 2024, compared to $226,000 in the first quarter a year ago, but decreased compared to $734,000 in the preceding quarter.

“We experienced good secondary loan activity to start the year, and we were able to take $175,000 in income through our FHLB Lender Risk Account (LRA) during the first quarter of 2024, compared to $35,000 during the first quarter of 2023,” said Almendinger.

Noninterest Expense
Noninterest expenses were $11.8 million during the first quarter of 2024, a 1.2% increase compared to $11.6 million in the preceding quarter and unchanged compared to the first quarter a year ago. Salary and employee benefit expenses, the largest component of noninterest expense, were $7.3 million in the first quarter of 2024, which was a 1.7% decrease compared to $7.4 million in the preceding quarter and a 2.4% decrease compared to $7.5 million in the first quarter of 2023.

“In the first quarter of 2024, we continued with our company-wide efforts to manage operating expenses,” said Almendinger. “Salary and employee benefits, the largest component of noninterest expense, were lower in part due to lower incentive compensation from muted loan growth and fewer full-time employees. This was partly offset by higher FDIC insurance premiums compared to the first quarter a year ago.”

The efficiency ratio for the first quarter of 2024 was 65.5%, compared to 62.5% for the preceding quarter and unchanged compared to the first quarter of 2023.

Income Tax Provision
In the first quarter of 2024, Heartland recorded $1.1 million in state and federal income tax expense for an effective tax rate of 18.1%, compared to $1.1 million, or 17.7%, in the fourth quarter of 2023 and $992,000, or 18.2%, in the first quarter a year ago.

________________________
^{*As of December 31, 2023, the Dow Jones U.S. MicroCap Bank Index tracked 178 banks with total common market capitalization under $250 million for the following ratios: NIM* of 3.20%.}

Credit Quality
“Our overall credit quality metrics continue to remain strong. We continue to see minimal signs of stress in the loan portfolio, and we hold strong collateral positions with all our loans,” said McComb.

At March 31, 2024, the allowance for credit losses plus unfunded commitment liability (ACL + UCL) was $19.4 million, or 1.27% of total loans, compared to $19.4 million, or 1.25% of total loans, at December 31, 2023, and $18.0 million, or 1.22% of total loans, a year ago. As of March 31, 2024, the ACL represented 985% of nonaccrual loans, compared to 1,106% three months earlier and 1,406% one year earlier.

Nonaccrual loans were $1.8 million at March 31, 2024, compared to $1.6 million at December 31, 2023, and $1.1 million at March 31, 2023. At March 31, 2024, nonaccrual loans totaled 11 loans with an average balance of approximately $165,000. There was $149,000 in loans past due 90 days and still accruing at March 31, 2024, compared to $468,000 at December 31, 2023, and $111,000 at March 31, 2023. Net loan charge-offs totaled $30,000 at March 31, 2024, compared to $318,000 in net loan charge-offs at December 31, 2023, and $19,000 in net loan charge-offs at March 31, 2023.

There were no other real estate owned and other nonperforming assets on the books at March 31, 2024, compared to $10,000 at December 31, 2023, and $5,000 at March 31, 2023. Nonperforming assets (NPAs), consisting of nonperforming loans and loans past due 90 days or more, were $2.0 million, or 0.10% of total assets, at March 31, 2024, compared to $2.1 million, or 0.11% at December 31, 2023, and $1.3 million, or 0.07% of total assets, at March 31, 2023.

About Heartland BancCorp
Heartland BancCorp is a registered Ohio bank holding company and the parent of Heartland Bank, which operates 20 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 June of 2023, Heartland was ranked #119 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, 2022.

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) Heartland’s plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts; and (ii) 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; and (6) 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:		Mar. 31, 2024			Dec. 31, 2023			Sep. 30, 2023			Jun. 30, 2023			Mar. 31, 2023
	Interest income	$	25,626		$	25,195		$	24,194		$	22,476		$	20,521
	Interest expense		10,764			9,807			8,928			7,437			5,180
	Net interest income		14,862			15,388			15,266			15,039			15,341
	Provision for credit losses		-			550			500			800			750
	Noninterest income		3,119			3,217			3,232			3,390			2,601
	Noninterest expense		11,775			11,632			11,975			11,695			11,750
	Provision for income taxes		1,124			1,135			1,091			1,088			992
	Net income		5,082			5,288			4,932			4,846			4,450
Share data:
	Basic earnings per share	$	2.52		$	2.62		$	2.45		$	2.41		$	2.21
	Diluted earnings per share		2.51			2.61			2.43			2.39			2.19
	Dividends declared per share		0.76			0.76			0.76			0.76			0.76
	Book value per share		81.28			80.66			74.24			75.02			73.60
	Tangible book value per share		74.88			74.23			67.78			68.54			67.09
	Common shares outstanding, 20,000,000 authorized		2,105,737			2,105,737			2,105,737			2,105,237			2,103,537
	Treasury shares		(90,612	)		(90,612	)		(90,612	)		(90,612	)		(90,612	)
	Common shares, net		2,015,125			2,015,125			2,015,125			2,014,625			2,012,925
	Average common shares outstanding, net		2,015,125			2,015,125			2,014,936			2,013,607			2,009,782
Balance sheet - average balances:
	Loans receivable, net	$	1,519,946		$	1,520,331		$	1,498,257		$	1,465,920		$	1,415,215
	Earning assets		1,776,073			1,749,160			1,718,549			1,672,994			1,606,350
	Goodwill & intangible assets		12,934			12,982			13,031			13,077			13,132
	Total assets		1,878,171			1,854,191			1,822,084			1,772,998			1,705,675
	Demand deposits		453,581			476,992			473,373			467,301			495,443
	Deposits		1,639,911			1,622,335			1,598,495			1,553,882			1,488,181
	Borrowings		58,938			60,857			51,856			49,965			54,257
	Shareholders' equity		163,283			152,393			152,720			150,017			148,195
Ratios:
	Return on average assets		1.09	%		1.13	%		1.07	%		1.10	%		1.06	%
	Return on average equity		12.52	%		13.77	%		12.81	%		12.96	%		12.18	%
	Return on average tangible common equity		13.59	%		15.05	%		14.01	%		14.19	%		13.36	%
	Yield on earning assets		5.80	%		5.71	%		5.59	%		5.39	%		5.18	%
	Cost of deposits		2.45	%		2.21	%		2.05	%		1.76	%		1.24	%
	Cost of funds		2.55	%		2.31	%		2.15	%		1.86	%		1.36	%
	Net interest margin		3.37	%		3.49	%		3.52	%		3.61	%		3.87	%
	Efficiency ratio		65.49	%		62.52	%		64.74	%		63.46	%		65.48	%
Asset quality:
	Net loan charge-offs to average loans		0.01	%		0.08	%		0.01	%		0.01	%		0.01	%
	Nonperforming loans to gross loans		0.13	%		0.13	%		0.14	%		0.14	%		0.09	%
	Nonperforming assets to total assets		0.10	%		0.11	%		0.11	%		0.12	%		0.07	%
	Allowance for credit losses to gross loans		1.17	%		1.16	%		1.13	%		1.13	%		1.13	%
	ACL + UCL to gross loans		1.27	%		1.25	%		1.26	%		1.24	%		1.22	%

Heartland BancCorp
Consolidated Balance Sheets
Assets		Mar. 31, 2024				Dec. 31, 2023				Sep. 30, 2023				Jun. 30, 2023				Mar. 31, 2023
	Cash and due from	$	18,314			$	16,750			$	20,993			$	16,304			$	14,121
	Interest bearing deposits		15,717				19,932				24,222				20,017				37,297
	Interest bearing time deposits		-				-				-				-				-
	Available-for-sale securities		222,609				211,130				179,817				178,031				159,622
	Held-to-maturity securities		0				0				5				5				5
	Loans held for sale		2,210				1,145				1,706				2,748				1,200
	Commercial		166,413				172,658				169,405				176,972				165,736
	CRE (Owner occupied)		293,542				295,996				277,092				273,526				285,575
	CRE (Non Owner occupied)		489,709				501,056				502,012				490,900				468,163
	1-4 Family		507,374				508,826				499,953				495,578				486,077
	Home Equity		54,178				51,697				52,466				48,542				44,749
	Consumer		18,859				18,974				19,857				19,848				18,502
	Allowance for credit losses		(17,897	)			(17,928	)			(17,143	)			(17,063	)			(16,644	)
	Net Loans		1,512,178				1,531,279				1,503,642				1,488,303				1,452,158
	Premises and equipment		33,298				33,649				33,586				31,919				30,926
	Nonmarketable equity securities		6,941				6,866				6,863				6,635				6,631
	Mortgage servicing rights, net		3,384				3,373				3,346				3,208				3,119
	Foreclosed assets held for sale		0				10				0				5				5
	Goodwill		12,388				12,388				12,388				12,388				12,388
	Intangible Assets		517				565				613				661				710
	Deferred income taxes		6,662				7,087				8,323				6,702				6,157
	Life insurance assets		20,545				20,315				20,140				20,020				19,903
	Accrued interest receivable and other assets		22,429				18,661				19,148				18,744				20,848
	Total assets	$	1,877,192			$	1,883,150			$	1,834,792			$	1,805,690			$	1,765,090
Liabilities and Shareholders' Equity
Liabilities
	Deposits
	Demand	$	419,864			$	487,631			$	454,764			$	462,232			$	487,238
	Saving, NOW and money market		705,942				711,198				695,106				677,833				685,233
	Time		502,848				443,772				429,480				418,046				395,525
	Total deposits		1,628,654				1,642,601				1,579,350				1,558,111				1,567,996
	Repurchase agreements		4,472				4,583				4,446				4,594				5,095
	FHLB Advances		38,000				31,000				56,000				50,000				0
	Subordinated debt		24,044				24,034				24,024				24,213				24,703
	Interest payable and other liabilities		18,228				18,400				21,377				17,635				19,153
	Total liabilities		1,713,398				1,720,618				1,685,197				1,654,553				1,616,947
Shareholders' Equity
	Common stock, without par value		62,797				62,725				62,615				62,473				62,173
	Retained earnings		123,617				120,064				116,306				112,904				108,962
	Accumulated other comprehensive income (expense)		(17,626	)			(15,263	)			(24,332	)			(19,246	)			(17,998	)
	Treasury stock at Cost, Common		(4,994	)			(4,994	)			(4,994	)			(4,994	)			(4,994	)
	Total shareholders' equity		163,794				162,532				149,595				151,137				148,143
	Total liabilities and shareholders' equity	$	1,877,192			$	1,883,150			$	1,834,792			$	1,805,690			$	1,765,090

Heartland BancCorp
Consolidated Statements of Income
		Three Months Ended
Interest Income		Mar. 31, 2024				Dec. 31, 2023				Sep. 30, 2023				Jun. 30, 2023				Mar. 31, 2023
	Loans	$	23,015			$	22,850			$	22,080			$	20,609			$	18,885
	Securities
	Taxable		1,637				1,374				1,173				928				845
	Tax-exempt		657				629				619				596				598
	Other		317				342				322				343				193
	Total interest income		25,626				25,195				24,194				22,476				20,521
Interest Expense
	Deposits		10,006				9,017				8,272				6,837				4,564
	Borrowings		758				790				656				600				616
	Total interest expense		10,764				9,807				8,928				7,437				5,180
Net Interest Income			14,862				15,388				15,266				15,039				15,341
Provision for Credit Losses			-				550				500				800				750
Net Interest Income After Provision for Credit Losses			14,862				14,838				14,766				14,239				14,591
Noninterest income
	Service charges		952				1,002				1,020				1,015				975
	Gains on sale of loans and originated MSR		518				734				708				704				226
	Loan servicing fees, net		494				354				408				337				431
	Title insurance income		210				214				196				311				171
	Increase in cash value of life insurance		230				175				120				117				114
	Other		715				738				780				906				684
	Total noninterest income		3,119				3,217				3,232				3,390				2,601
Noninterest Expense
	Salaries and employee benefits		7,300				7,430				7,393				7,252				7,483
	Net occupancy and equipment expense		1,106				1,052				1,057				1,055				1,067
	Software and data processing fees		1,156				1,163				1,205				1,069				1,025
	Professional fees		233				242				225				288				266
	Marketing expense		310				320				271				309				299
	State financial institution tax		292				260				259				259				261
	FDIC insurance premiums		284				299				341				298				228
	Other		1,094				866				1,224				1,165				1,121
	Total noninterest expense		11,775				11,632				11,975				11,695				11,750
Income before Income Tax			6,206				6,423				6,023				5,934				5,442
Provision for Income Taxes			1,124				1,135				1,091				1,088				992
Net Income		$	5,082			$	5,288			$	4,932			$	4,846			$	4,450
Basic Earnings Per Share		$	2.52			$	2.62			$	2.45			$	2.41			$	2.21
Diluted Earnings Per Share		$	2.51			$	2.61			$	2.43			$	2.39			$	2.19

Heartland BancCorp
ADDITIONAL FINANCIAL INFORMATION
(Dollars in thousands except per share amounts)(Unaudited)
Asset Quality Ratios and Data:
		Mar. 31, 2024				Dec. 31, 2023				Sep. 30, 2023				Jun. 30, 2023				Mar. 31, 2023
Nonaccrual loans (excluding restructured loans)		$	1,817			$	1,621			$	1,942			$	2,163			$	1,140
Nonaccrual restructured loans			-				-				-				-				-
Loans past due 90 days and still accruing			149				468				146				-				111
Total non-performing loans			1,966				2,089				2,088				2,163				1,251
OREO and other non-performing assets			-				10				-				5				5
Total non-performing assets		$	1,966			$	2,099			$	2,088			$	2,168			$	1,256
Nonperforming loans to gross loans			0.13	%			0.13	%			0.14	%			0.14	%			0.09	%
Nonperforming assets to total assets			0.10	%			0.11	%			0.11	%			0.12	%			0.07	%
Allowance for credit losses to gross loans			1.17	%			1.16	%			1.13	%			1.13	%			1.13	%
Unfunded commitment liability to gross loans			0.10	%			0.09	%			0.13	%			0.11	%			0.09	%
ACL + UCL to gross loans			1.27	%			1.25	%			1.26	%			1.24	%			1.22	%
Performing restructured loans (RC-C)		$	-			$	-			$	-			$	-			$	-
Net charge-offs quarter ending		$	30			$	318			$	47			$	43			$	19

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