Heartland BancCorp
Annual Report 2010

Plain-text annual report

2010 Financial Review Net income for the year ended December 31, 2010 was $4.6 million or $2.96 per share compared to net income of $3.6 million or $2.32 per share for the year ended December 31, 2009. The primary source of Heartland BancCorp’s revenue is net interest income from its investment and loan portfolios less its cost of deposits and borrowings. Net interest income before provision for loan loss for 2010 grew 8% to $20.4 million compared to $18.8 million for 2009. Provision for loan loss of $1.9 million for the full year 2010 compared to $1.6 million for all of 2009. The added provision in 2010 was used to increase the Bank’s allowance for loan loss while 2010 loan charge-offs at .32% of average loans outstanding remained at 2009 levels. The improvement in net interest income resulted from the combined effect of a 27% decline in the Bank’s cost of funds less a 4% drop in the yield on earning assets. Lower funding cost resulted from a positive shift in deposit mix to lower cost non-interest bearing transaction and money market accounts that increased from 2009 18% and 22% respectively. This increase in lower cost deposits enabled Heartland Bank to drive significant reductions in its funding cost and improvement in its net interest income. These favorable contributors to net interest income were partially offset by a reduction in the yield in the loan portfolio and an increase in lower yielding securities both the result of continuation of the low interest rate environment during 2010. Total non-interest income of $2.7 million in 2010 compares to $1.9 million for 2009. The lower level of non-interest income in 2009 was due to a one time charge to earnings totaling $990 thousand resulting from the mark-to-market of an other than temporarily impaired investment security. The decline in service charges during 2010 resulted from the implementation of changes to Regulation E during the third quarter of 2010. Regulation E restricts banking institutions from charging overdraft fees on ATM and debit card transactions absent a customer’s opt-in to overdraft coverage. Non-interest or operating expense of $14.9 million in 2010 increased 6% over non-interest expense of $14.0 million in 2009. Salary and employee benefits expense for 2010 increased $313 thousand or 4% verses the year ended 2009. The increase was partially attributable to a 2% increase in staffing added due to the increasing banking related regulatory requirements and higher health insurance costs in 2010. Other operating expense increased $310 thousand year-over-year due to increased loan related collection expenses in 2010. Total assets outstanding increased 2% to $537 million at year-end 2010, an increase of $13 million from assets of $524 million at the end of 2009. Loan and deposit volumes have been influenced significantly during 2010 and 2009 by overall economic factors including market interest rates, consumer confidence, fluctuations in the unemployment rate, lower levels of business and consumer spending as well as changes in regulations affecting banking institutions. We continued to implement initiatives to enhance our loan quality and grow our retail deposit relationships while improving our productivity during 2010. Net loans outstanding declined slightly to $388 million, down 1% under loans of $393 million at the end of 2009. The decline in loans outstanding resulted from continued weak demand in both the commercial and retail lending sectors. Deposits increased 2% to $462 million at December 31, 2010. A key element of Heartland’s deposit strategy was focused on growing our transaction account deposit base while reducing our dependence on public funds and larger non-core certificate of deposit accounts in 2010. Total shareholders’ equity remained strong growing to $45.2 million, up 2% from $44.3 million at year-end 2009. Based upon shares outstanding the book value of shareholders’ equity increased from $28.83 at year-end 2009 to $29.46 per share at December 31, 2010. Among the financial strengths of Heartland BancCorp is our capital position, which exceeds regulatory guidelines and compares favorably to our peers and other Ohio based banks. Tier1 leverage, Tier 1 Risk based and Total Risk Based Capital ratios were 8.6%, 12.4%, and 13.4% respectively as of December 31, 2010. Regulatory requirements for a well-capitalized bank are 5%, 6%, and 10% for Tier 1 Leverage; Tier 1 Risk based and Total Risk Based Capital Ratios respectively. Further enhancing shareholder value dividends per share of common stock totaled $1.28 representing a dividend yield of 5.63% on the average market price of $22.73 per share for 2010. Dividends paid resulted in a dividend payout ratio of 43% for 2010. Our conservative culture, risk management practices, and quality people throughout the last 100 years have enabled Heartland BancCorp to successfully reach and celebrate our Centennial. We believe Heartland BancCorp continues to be strategically positioned to capitalize on opportunities enhancing our shareholders’ interest as the economy improves. I would like to take this opportunity to thank our shareholders, directors, ambassadors, customers and employees for their continued support and confidence in Heartland BancCorp. We truly value your business and look forward to serving you for another 100 years. Best personal regards, Tiney M. McComb Chairman and CEO Heartland BancCorp and Bank Directors Heartland BancCorp Officers I. Robert Amerine Chairman, ISCO, Inc. Arthur G.H. Bing M.D. Plastic & Reconstructive Surgeon Tiney M. McComb Chairman & CEO G. Scott McComb Vice Chairman & President Jay B. Eggspuehler, Esq. Wiles, Boyle, Burkholder & Bringardner Co., L.P.A. I. Robert Amerine Secretary Jodi L Garrison, CPA Partner, Hirth, Norris & Garrsion, LLP George R. Smith Executive Vice President, Chief Financial Officer John R. Haines Retired, John R. Haines Insurance Agency David C. Kotary Principal, Brower Insurance Agency, LLC Gerald K. McClain President, The Jerry McClain Company, Inc. G. Scott McComb President & CEO, Heartland Bank Tiney M. McComb Chairman of the Board Jack J. Eggspuehler President, Aerosafe, Inc., Director Emeritus Cheryl C. Poulton President, Tech International, Director Emeritus Heartland Investment Services Mark Posey Investment Representative Jason Ellinger Investment Representative Heartland Bank Senior Management Tiney M. McComb Chairman G. Scott McComb President and CEO George R. Smith Executive Vice President, Chief Financial Officer David P. Curby Senior Vice President, Mortgage Lending Robert F. Halley Senior Vice President, Commercial Relationship Manager Steven C. Hines Senior Vice President, Commercial Relationship Manager Mark S. Kelly Senior Vice President, Business Development & Support Services Donna J. Holycross Vice President, Director of Marketing Cheryl L. Krouse Vice President, Retail Administration Manager Mark A. Matthews Vice President, Credit Review Linda E. Miller Vice President, Corporate Secretary Edmund W. Smallwood, Jr. Vice President, Retail Sales Administrative Officer Stephanie W. Toalston Vice President, Director of Human Resources Lois E. Ellis Assistant Vice President, Compliance Officer Original Croton Bank 1911 heartlandbank.com Heartland Bank Launches iPhone App! Feb. 2, 2011 Member FDIC 1996 Groundbreaking of Corporate Office in Gahanna Groundbreaking of Corporate Office in Gahanna 1995 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. Worldwide access at heartlandbank.com. To Our Shareholders, Customers, and Friends: Congratulations on our Centennial!! It was 100 years ago that The Croton Bank Co. was incorporated by Jason Potter, George B. Van Fossen, Clarence W. Wells, Otis H. Davidson, John M. Curry, and Stanton E. Hoover, the original stockholders, and George Van Fossen was the first President. A great deal has changed in banking since the birth of your community bank. The first deposits were made by traveling by horse and buggy to the one bank branch and then came the expansion of the bank’s footprint to all of central Ohio and now we can make our deposits from our desktops via the Internet. However, one thing has not changed and that is our commitment to the community in which this bank was founded, which remains as strong as ever and continues to be the guidance for our existence. I am pleased to announce another successful year for Heartland. This year we were honored by US Banker Magazine by improving our ranking from 159 to 112 in the “Top 200” community banks nationwide based on ROAE (return on average equity). This achievement continues to be a true indication of the prudent underwriting standards, dedication to technology and efficiency, and management of risk that is Heartland Bank. Strong and prudent banks continue to emerge as the survivors of this industry and these banks will reap the benefits of a shrinking legion of banks as the economy and financial reform continue to be a major focus. Heartland was also recognized by Business First of Columbus as the #3 SBA Lender in Central Ohio, placing it above many far larger institutions. This is another indication that further demonstrates the creativity, flexibility, and risk management of the institution. Heartland is proud to receive these honors and is dedicated to remaining focused on prudent banking principles to benefit our communities and maximize shareholder value. Tiney M. McComb Chairman & CEO of Heartland BancCorp Chairman of Heartland Bank We are seeing signs that our economy is recovering. Unemployment in central Ohio is beginning to decline slightly, consumer spending seems to be picking up, and businesses are starting to seek growth strategies to further their business plans. While there are some good signs, we remain cautiously optimistic about the local and national economy and have advised our clients that we are not on the road to complete recovery just yet. Housing starts are at a 23-year low, housing values are still settling in at the floor, and the consumer is, for the most part, still on the sidelines as they build up their savings and/or retire debt. Our country’s national debt is at an all time high and needs to be dealt with very soon. Until this occurs with just prudence, the economy will remain very fragile and extremely vulnerable to world events and economies abroad. 2010 was a banner year for Heartland BancCorp as we continued our mission to be Central Ohio’s Community Bank. The bank achieved record earnings of $4.6 million for the first time. We solidified our commitment to the Westside of Columbus, and the Hilltop Community, by renovating our Wilson Road Office to look and feel like all of the other Heartland Offices. In a year that found many consumers and businesses searching for a relationship with a bank, we focused on introducing those displaced customers to Heartland. Growing core banking relationships was again the focus for the entire year, and I’m proud to report we were very successful in growing our client base. The massive Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (FinReg Bill) was passed and we are beginning to see the effects of this legislation in the market place. While the Act contains a multitude of new regulations, we feel that compliance with these new rules will be a competitive strength of our enterprise. Regulating non-bank financial companies such as mortgage lenders, new FDIC premium guidelines, and tighter controls of the securitization markets are all things that are positive to community banks. Our entire staff has also participated in this effort by repeatedly writing and calling their respective members of Congress to voice their opinion on these issues and how it will affect their personal lives and their bank. One of the many items that were not a benefit, the Durbin Amendment on debit card interchange fees, is most likely going to be delayed until a proper study of the measure and its effects on community banks can be studied further. In short, the FinReg Bill was in some ways a victory for community banks and we feel that our adaptability to comply with this new legislation is a competitive strength as many of our competitors find it easier to be a part of the consolidation wave. Ultimately, our success flows directly from the quality of our employees and their commitment to delivering superior service to our customers. We continue to invest in our “people portfolio,” growing Heartland Community Bankers throughout our enterprise. Our internal training department has enhanced its course offerings, we have record enrollment in the Bank’s Principles of Banking program, several associates are attending secondary industry education, and our front line Client Service Representative (CSR) movement to encourage consultative interaction has been a great success. Management has reinforced the theme of personal empowerment across all departments, recognizing that client satisfaction is a direct result of their experience. Investing in this strength to become a “best of breed organization” is the goal and we are well on our way to achieving this distinction. Now here are the financial highlights of 2010. Glenn S. Potter Past President of Croton Bank Co. s l a i c n a n i F d e t a d i l o s n o C Heartland BancCorp Consolidated Balance Sheets December 31, 2010 and 2009 Heartland BancCorp Consolidated Statements of Income Years Ended December 31, 2010 and 2009 Assets 2010 __________ 2009 __________ Cash and cash equivalents $ 7,825,727 $ 10,432,823 Available-for-sale securities Held-to-maturity securities 115,223,173 5,756,962 95,408,139 5,905,720 Loans, net of allowance for loan losses of $3,871,640 and $3,244,003 at December 31, 2010 and 2009, respectively Premises and equipment Federal Reserve and Federal Home Loan Bank stock Foreclosed assets held for sale Interest receivable Goodwill Prepaid FDIC insurance premium Other Total assets 387,867,015 9,479,273 1,230,450 2,615,688 1,804,636 417,353 1,770,653 2,756,864 __________ 392,969,857 9,670,790 1,230,300 1,468,093 1,973,311 417,353 2,605,235 1,853,552 __________ $ 536,747,794 __________ __________ $ 523,935,173 __________ __________ Liabilities and Shareholders’ Equity Liabilities Deposits Demand Savings, NOW and money market Time Total deposits Short-term borrowings Long-term debt Interest payable and other liabilities $ 50,519,453 159,720,953 251,484,773 __________ $ 42,795,604 130,752,542 280,372,012 __________ 461,725,179 __________ 453,920,158 __________ 23,500,430 3,093,000 3,185,929 __________ 19,601,594 3,093,000 3,064,088 __________ Interest Income Loans Securities Taxable Tax-exempt Other Federal funds sold Total interest income Interest Expense Deposits Borrowings Total interest expense Net Interest Income __________ 2010 2009 __________ $ 23,893,785 $ 24,490,400 2,676,959 1,394,671 44,540 161 __________ 3,500,090 1,172,805 40,286 123 __________ 28,010,116 __________ 29,203,704 __________ 7,244,675 382,357 __________ 9,974,546 413,723 __________ 7,627,032 __________ 10,388,269 __________ 20,383,084 18,815,435 Provision for Loan Losses 1,921,000 __________ 1,625,000 __________ Net Interest Income After Provision for Loan Losses Noninterest Income Service charges Net gains and commissions on loan sales Net realized gains on sales of available-for-sale securities Net realized (losses) gains on sales of foreclosed assets Other-than-temporary impairment loss on available-for-sale security Other Total noninterest income Total liabilities 491,504,538 __________ 479,678,840 __________ Noninterest Expense Shareholders’ Equity Common stock, without par value; authorized 5,000,000 shares; issued 2010 - 1,535,832 shares, 2009 - 1,535,224 shares Retained earnings Accumulated other comprehensive income Treasury stock, at cost Common; 2009 - 139 shares Total shareholders’ equity 23,047,347 21,282,467 913,442 23,038,474 18,691,579 2 ,532,118 - __________ (5,838) __________ 45,243,256 __________ 44,256,333 __________ Total liabilities and shareholders’ equity $ 536,747,794 __________ __________ $ 523,935,173 __________ __________ Salaries and employee benefits Net occupancy and equipment expense Data processing fees Professional fees Marketing expense Printing and office supplies State franchise taxes FDIC Insurance premiums Other Total noninterest expense Income Before Income Tax Provision for Income Taxes Net Income Basic Earnings Per Share Diluted Earnings Per Share 18,462,084 __________ 17,190,435 __________ 2,287,251 99,020 2,316,108 54,242 274,350 210,993 (373,261) 49,558 - 445,295 __________ (989,559) 247,658 __________ 2,732,655 __________ 1,889,000 __________ 8,030,257 1,828,933 754,310 616,568 407,902 220,232 539,393 908,756 1,565,490 __________ 7,717,296 1,736,900 798,562 520,142 379,654 196,717 522,030 913,865 1,255,476 __________ 14,871,841 __________ 14,040,642 __________ 6,322,898 1,753,258 __________ 5,038,793 1,447,114 __________ $ 4,569,640 __________ __________ $ 3,591,679 __________ __________ $ 2 .98 __________ __________ $ 2.33 __________ __________ $ 2 .96 __________ __________ $ 2.32 __________ __________ Since 1911 Heartland Locations CORPORATE OFFICE 850 North Hamilton Road Gahanna, Ohio 43230 (614) 337-4600 COLUMBUS CAPITOL SQUARE 65 East State Street Columbus, Ohio 43215 (614) 416-0244 CROTON 12 North Main Street Croton, Ohio 43013 (740) 893-2191 DUBLIN 6500 Frantz Road Dublin, Ohio 43017 (614) 798-8818 FRIENDSHIP VILLAGE OF DUBLIN 6000 Riverside Drive Dublin, Ohio 43017 (614) 923-0575 GAHANNA 850 North Hamilton Road Gahanna, Ohio 43230 (614) 337-4605 GAHANNA NORTH STYGLER ROAD 67 North Stygler Road Gahanna, Ohio 43230 (614) 475-7024 GROVE CITY 2365 Old Stringtown Road Grove City, Ohio 43123 (614) 875-1884 JOHNSTOWN 730 West Coshocton Street Johnstown, Ohio 43031 (740) 967-6500 NEWARK 6 North Park Place Newark, Ohio 43055 (740) 349-7888 REYNOLDSBURG 6887 East Main Street Reynoldsburg, Ohio 43068 (614) 416-0400 WEST COLUMBUS 130 North Wilson Road Columbus, Ohio 43204 (614) 351-2100 WESTERVILLE 450 South State Street Westerville, Ohio 43081 (614) 839-2265 To Our Shareholders, Customers, and Friends: Congratulations on our Centennial!! It was 100 years ago that The Croton Bank Co. was incorporated by Jason Potter, George B. Van Fossen, Clarence W. Wells, Otis H. Davidson, John M. Curry, and Stanton E. Hoover, the original stockholders, and George Van Fossen was the first President. A great deal has changed in banking since the birth of your community bank. The first deposits were made by traveling by horse and buggy to the one bank branch and then came the expansion of the bank’s footprint to all of central Ohio and now we can make our deposits from our desktops via the Internet. However, one thing has not changed and that is our commitment to the community in which this bank was founded, which remains as strong as ever and continues to be the guidance for our existence. I am pleased to announce another successful year for Heartland. This year we were honored by US Banker Magazine by improving our ranking from 159 to 112 in the “Top 200” community banks nationwide based on ROAE (return on average equity). This achievement continues to be a true indication of the prudent underwriting standards, dedication to technology and efficiency, and management of risk that is Heartland Bank. Strong and prudent banks continue to emerge as the survivors of this industry and these banks will reap the benefits of a shrinking legion of banks as the economy and financial reform continue to be a major focus. Heartland was also recognized by Business First of Columbus as the #3 SBA Lender in Central Ohio, placing it above many far larger institutions. This is another indication that further demonstrates the creativity, flexibility, and risk management of the institution. Heartland is proud to receive these honors and is dedicated to remaining focused on prudent banking principles to benefit our communities and maximize shareholder value. Tiney M. McComb Chairman & CEO of Heartland BancCorp Chairman of Heartland Bank We are seeing signs that our economy is recovering. Unemployment in central Ohio is beginning to decline slightly, consumer spending seems to be picking up, and businesses are starting to seek growth strategies to further their business plans. While there are some good signs, we remain cautiously optimistic about the local and national economy and have advised our clients that we are not on the road to complete recovery just yet. Housing starts are at a 23-year low, housing values are still settling in at the floor, and the consumer is, for the most part, still on the sidelines as they build up their savings and/or retire debt. Our country’s national debt is at an all time high and needs to be dealt with very soon. Until this occurs with just prudence, the economy will remain very fragile and extremely vulnerable to world events and economies abroad. 2010 was a banner year for Heartland BancCorp as we continued our mission to be Central Ohio’s Community Bank. The bank achieved record earnings of $4.6 million for the first time. We solidified our commitment to the Westside of Columbus, and the Hilltop Community, by renovating our Wilson Road Office to look and feel like all of the other Heartland Offices. In a year that found many consumers and businesses searching for a relationship with a bank, we focused on introducing those displaced customers to Heartland. Growing core banking relationships was again the focus for the entire year, and I’m proud to report we were very successful in growing our client base. The massive Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (FinReg Bill) was passed and we are beginning to see the effects of this legislation in the market place. While the Act contains a multitude of new regulations, we feel that compliance with these new rules will be a competitive strength of our enterprise. Regulating non-bank financial companies such as mortgage lenders, new FDIC premium guidelines, and tighter controls of the securitization markets are all things that are positive to community banks. Our entire staff has also participated in this effort by repeatedly writing and calling their respective members of Congress to voice their opinion on these issues and how it will affect their personal lives and their bank. One of the many items that were not a benefit, the Durbin Amendment on debit card interchange fees, is most likely going to be delayed until a proper study of the measure and its effects on community banks can be studied further. In short, the FinReg Bill was in some ways a victory for community banks and we feel that our adaptability to comply with this new legislation is a competitive strength as many of our competitors find it easier to be a part of the consolidation wave. Ultimately, our success flows directly from the quality of our employees and their commitment to delivering superior service to our customers. We continue to invest in our “people portfolio,” growing Heartland Community Bankers throughout our enterprise. Our internal training department has enhanced its course offerings, we have record enrollment in the Bank’s Principles of Banking program, several associates are attending secondary industry education, and our front line Client Service Representative (CSR) movement to encourage consultative interaction has been a great success. Management has reinforced the theme of personal empowerment across all departments, recognizing that client satisfaction is a direct result of their experience. Investing in this strength to become a “best of breed organization” is the goal and we are well on our way to achieving this distinction. Now here are the financial highlights of 2010. Glenn S. Potter Past President of Croton Bank Co. s l a i c n a n i F d e t a d i l o s n o C Heartland BancCorp Consolidated Balance Sheets December 31, 2010 and 2009 Heartland BancCorp Consolidated Statements of Income Years Ended December 31, 2010 and 2009 Assets 2010 __________ 2009 __________ Cash and cash equivalents $ 7,825,727 $ 10,432,823 Available-for-sale securities Held-to-maturity securities 115,223,173 5,756,962 95,408,139 5,905,720 Loans, net of allowance for loan losses of $3,871,640 and $3,244,003 at December 31, 2010 and 2009, respectively Premises and equipment Federal Reserve and Federal Home Loan Bank stock Foreclosed assets held for sale Interest receivable Goodwill Prepaid FDIC insurance premium Other Total assets 387,867,015 9,479,273 1,230,450 2,615,688 1,804,636 417,353 1,770,653 2,756,864 __________ 392,969,857 9,670,790 1,230,300 1,468,093 1,973,311 417,353 2,605,235 1,853,552 __________ $ 536,747,794 __________ __________ $ 523,935,173 __________ __________ Liabilities and Shareholders’ Equity Liabilities Deposits Demand Savings, NOW and money market Time Total deposits Short-term borrowings Long-term debt Interest payable and other liabilities $ 50,519,453 159,720,953 251,484,773 __________ $ 42,795,604 130,752,542 280,372,012 __________ 461,725,179 __________ 453,920,158 __________ 23,500,430 3,093,000 3,185,929 __________ 19,601,594 3,093,000 3,064,088 __________ Interest Income Loans Securities Taxable Tax-exempt Other Federal funds sold Total interest income Interest Expense Deposits Borrowings Total interest expense Net Interest Income __________ 2010 2009 __________ $ 23,893,785 $ 24,490,400 2,676,959 1,394,671 44,540 161 __________ 3,500,090 1,172,805 40,286 123 __________ 28,010,116 __________ 29,203,704 __________ 7,244,675 382,357 __________ 9,974,546 413,723 __________ 7,627,032 __________ 10,388,269 __________ 20,383,084 18,815,435 Provision for Loan Losses 1,921,000 __________ 1,625,000 __________ Net Interest Income After Provision for Loan Losses Noninterest Income Service charges Net gains and commissions on loan sales Net realized gains on sales of available-for-sale securities Net realized (losses) gains on sales of foreclosed assets Other-than-temporary impairment loss on available-for-sale security Other Total noninterest income Total liabilities 491,504,538 __________ 479,678,840 __________ Noninterest Expense Shareholders’ Equity Common stock, without par value; authorized 5,000,000 shares; issued 2010 - 1,535,832 shares, 2009 - 1,535,224 shares Retained earnings Accumulated other comprehensive income Treasury stock, at cost Common; 2009 - 139 shares Total shareholders’ equity 23,047,347 21,282,467 913,442 23,038,474 18,691,579 2 ,532,118 - __________ (5,838) __________ 45,243,256 __________ 44,256,333 __________ Total liabilities and shareholders’ equity $ 536,747,794 __________ __________ $ 523,935,173 __________ __________ Salaries and employee benefits Net occupancy and equipment expense Data processing fees Professional fees Marketing expense Printing and office supplies State franchise taxes FDIC Insurance premiums Other Total noninterest expense Income Before Income Tax Provision for Income Taxes Net Income Basic Earnings Per Share Diluted Earnings Per Share 18,462,084 __________ 17,190,435 __________ 2,287,251 99,020 2,316,108 54,242 274,350 210,993 (373,261) 49,558 - 445,295 __________ (989,559) 247,658 __________ 2,732,655 __________ 1,889,000 __________ 8,030,257 1,828,933 754,310 616,568 407,902 220,232 539,393 908,756 1,565,490 __________ 7,717,296 1,736,900 798,562 520,142 379,654 196,717 522,030 913,865 1,255,476 __________ 14,871,841 __________ 14,040,642 __________ 6,322,898 1,753,258 __________ 5,038,793 1,447,114 __________ $ 4,569,640 __________ __________ $ 3,591,679 __________ __________ $ 2 .98 __________ __________ $ 2.33 __________ __________ $ 2 .96 __________ __________ $ 2.32 __________ __________ Since 1911 Heartland Locations CORPORATE OFFICE 850 North Hamilton Road Gahanna, Ohio 43230 (614) 337-4600 COLUMBUS CAPITOL SQUARE 65 East State Street Columbus, Ohio 43215 (614) 416-0244 CROTON 12 North Main Street Croton, Ohio 43013 (740) 893-2191 DUBLIN 6500 Frantz Road Dublin, Ohio 43017 (614) 798-8818 FRIENDSHIP VILLAGE OF DUBLIN 6000 Riverside Drive Dublin, Ohio 43017 (614) 923-0575 GAHANNA 850 North Hamilton Road Gahanna, Ohio 43230 (614) 337-4605 GAHANNA NORTH STYGLER ROAD 67 North Stygler Road Gahanna, Ohio 43230 (614) 475-7024 GROVE CITY 2365 Old Stringtown Road Grove City, Ohio 43123 (614) 875-1884 JOHNSTOWN 730 West Coshocton Street Johnstown, Ohio 43031 (740) 967-6500 NEWARK 6 North Park Place Newark, Ohio 43055 (740) 349-7888 REYNOLDSBURG 6887 East Main Street Reynoldsburg, Ohio 43068 (614) 416-0400 WEST COLUMBUS 130 North Wilson Road Columbus, Ohio 43204 (614) 351-2100 WESTERVILLE 450 South State Street Westerville, Ohio 43081 (614) 839-2265 To Our Shareholders, Customers, and Friends: Congratulations on our Centennial!! It was 100 years ago that The Croton Bank Co. was incorporated by Jason Potter, George B. Van Fossen, Clarence W. Wells, Otis H. Davidson, John M. Curry, and Stanton E. Hoover, the original stockholders, and George Van Fossen was the first President. A great deal has changed in banking since the birth of your community bank. The first deposits were made by traveling by horse and buggy to the one bank branch and then came the expansion of the bank’s footprint to all of central Ohio and now we can make our deposits from our desktops via the Internet. However, one thing has not changed and that is our commitment to the community in which this bank was founded, which remains as strong as ever and continues to be the guidance for our existence. I am pleased to announce another successful year for Heartland. This year we were honored by US Banker Magazine by improving our ranking from 159 to 112 in the “Top 200” community banks nationwide based on ROAE (return on average equity). This achievement continues to be a true indication of the prudent underwriting standards, dedication to technology and efficiency, and management of risk that is Heartland Bank. Strong and prudent banks continue to emerge as the survivors of this industry and these banks will reap the benefits of a shrinking legion of banks as the economy and financial reform continue to be a major focus. Heartland was also recognized by Business First of Columbus as the #3 SBA Lender in Central Ohio, placing it above many far larger institutions. This is another indication that further demonstrates the creativity, flexibility, and risk management of the institution. Heartland is proud to receive these honors and is dedicated to remaining focused on prudent banking principles to benefit our communities and maximize shareholder value. Tiney M. McComb Chairman & CEO of Heartland BancCorp Chairman of Heartland Bank We are seeing signs that our economy is recovering. Unemployment in central Ohio is beginning to decline slightly, consumer spending seems to be picking up, and businesses are starting to seek growth strategies to further their business plans. While there are some good signs, we remain cautiously optimistic about the local and national economy and have advised our clients that we are not on the road to complete recovery just yet. Housing starts are at a 23-year low, housing values are still settling in at the floor, and the consumer is, for the most part, still on the sidelines as they build up their savings and/or retire debt. Our country’s national debt is at an all time high and needs to be dealt with very soon. Until this occurs with just prudence, the economy will remain very fragile and extremely vulnerable to world events and economies abroad. 2010 was a banner year for Heartland BancCorp as we continued our mission to be Central Ohio’s Community Bank. The bank achieved record earnings of $4.6 million for the first time. We solidified our commitment to the Westside of Columbus, and the Hilltop Community, by renovating our Wilson Road Office to look and feel like all of the other Heartland Offices. In a year that found many consumers and businesses searching for a relationship with a bank, we focused on introducing those displaced customers to Heartland. Growing core banking relationships was again the focus for the entire year, and I’m proud to report we were very successful in growing our client base. The massive Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (FinReg Bill) was passed and we are beginning to see the effects of this legislation in the market place. While the Act contains a multitude of new regulations, we feel that compliance with these new rules will be a competitive strength of our enterprise. Regulating non-bank financial companies such as mortgage lenders, new FDIC premium guidelines, and tighter controls of the securitization markets are all things that are positive to community banks. Our entire staff has also participated in this effort by repeatedly writing and calling their respective members of Congress to voice their opinion on these issues and how it will affect their personal lives and their bank. One of the many items that were not a benefit, the Durbin Amendment on debit card interchange fees, is most likely going to be delayed until a proper study of the measure and its effects on community banks can be studied further. In short, the FinReg Bill was in some ways a victory for community banks and we feel that our adaptability to comply with this new legislation is a competitive strength as many of our competitors find it easier to be a part of the consolidation wave. Ultimately, our success flows directly from the quality of our employees and their commitment to delivering superior service to our customers. We continue to invest in our “people portfolio,” growing Heartland Community Bankers throughout our enterprise. Our internal training department has enhanced its course offerings, we have record enrollment in the Bank’s Principles of Banking program, several associates are attending secondary industry education, and our front line Client Service Representative (CSR) movement to encourage consultative interaction has been a great success. Management has reinforced the theme of personal empowerment across all departments, recognizing that client satisfaction is a direct result of their experience. Investing in this strength to become a “best of breed organization” is the goal and we are well on our way to achieving this distinction. Now here are the financial highlights of 2010. Glenn S. Potter Past President of Croton Bank Co. s l a i c n a n i F d e t a d i l o s n o C Heartland BancCorp Consolidated Balance Sheets December 31, 2010 and 2009 Heartland BancCorp Consolidated Statements of Income Years Ended December 31, 2010 and 2009 Assets 2010 __________ 2009 __________ Cash and cash equivalents $ 7,825,727 $ 10,432,823 Available-for-sale securities Held-to-maturity securities 115,223,173 5,756,962 95,408,139 5,905,720 Loans, net of allowance for loan losses of $3,871,640 and $3,244,003 at December 31, 2010 and 2009, respectively Premises and equipment Federal Reserve and Federal Home Loan Bank stock Foreclosed assets held for sale Interest receivable Goodwill Prepaid FDIC insurance premium Other Total assets 387,867,015 9,479,273 1,230,450 2,615,688 1,804,636 417,353 1,770,653 2,756,864 __________ 392,969,857 9,670,790 1,230,300 1,468,093 1,973,311 417,353 2,605,235 1,853,552 __________ $ 536,747,794 __________ __________ $ 523,935,173 __________ __________ Liabilities and Shareholders’ Equity Liabilities Deposits Demand Savings, NOW and money market Time Total deposits Short-term borrowings Long-term debt Interest payable and other liabilities $ 50,519,453 159,720,953 251,484,773 __________ $ 42,795,604 130,752,542 280,372,012 __________ 461,725,179 __________ 453,920,158 __________ 23,500,430 3,093,000 3,185,929 __________ 19,601,594 3,093,000 3,064,088 __________ Interest Income Loans Securities Taxable Tax-exempt Other Federal funds sold Total interest income Interest Expense Deposits Borrowings Total interest expense Net Interest Income __________ 2010 2009 __________ $ 23,893,785 $ 24,490,400 2,676,959 1,394,671 44,540 161 __________ 3,500,090 1,172,805 40,286 123 __________ 28,010,116 __________ 29,203,704 __________ 7,244,675 382,357 __________ 9,974,546 413,723 __________ 7,627,032 __________ 10,388,269 __________ 20,383,084 18,815,435 Provision for Loan Losses 1,921,000 __________ 1,625,000 __________ Net Interest Income After Provision for Loan Losses Noninterest Income Service charges Net gains and commissions on loan sales Net realized gains on sales of available-for-sale securities Net realized (losses) gains on sales of foreclosed assets Other-than-temporary impairment loss on available-for-sale security Other Total noninterest income Total liabilities 491,504,538 __________ 479,678,840 __________ Noninterest Expense Shareholders’ Equity Common stock, without par value; authorized 5,000,000 shares; issued 2010 - 1,535,832 shares, 2009 - 1,535,224 shares Retained earnings Accumulated other comprehensive income Treasury stock, at cost Common; 2009 - 139 shares Total shareholders’ equity 23,047,347 21,282,467 913,442 23,038,474 18,691,579 2 ,532,118 - __________ (5,838) __________ 45,243,256 __________ 44,256,333 __________ Total liabilities and shareholders’ equity $ 536,747,794 __________ __________ $ 523,935,173 __________ __________ Salaries and employee benefits Net occupancy and equipment expense Data processing fees Professional fees Marketing expense Printing and office supplies State franchise taxes FDIC Insurance premiums Other Total noninterest expense Income Before Income Tax Provision for Income Taxes Net Income Basic Earnings Per Share Diluted Earnings Per Share 18,462,084 __________ 17,190,435 __________ 2,287,251 99,020 2,316,108 54,242 274,350 210,993 (373,261) 49,558 - 445,295 __________ (989,559) 247,658 __________ 2,732,655 __________ 1,889,000 __________ 8,030,257 1,828,933 754,310 616,568 407,902 220,232 539,393 908,756 1,565,490 __________ 7,717,296 1,736,900 798,562 520,142 379,654 196,717 522,030 913,865 1,255,476 __________ 14,871,841 __________ 14,040,642 __________ 6,322,898 1,753,258 __________ 5,038,793 1,447,114 __________ $ 4,569,640 __________ __________ $ 3,591,679 __________ __________ $ 2 .98 __________ __________ $ 2.33 __________ __________ $ 2 .96 __________ __________ $ 2.32 __________ __________ Since 1911 Heartland Locations CORPORATE OFFICE 850 North Hamilton Road Gahanna, Ohio 43230 (614) 337-4600 COLUMBUS CAPITOL SQUARE 65 East State Street Columbus, Ohio 43215 (614) 416-0244 CROTON 12 North Main Street Croton, Ohio 43013 (740) 893-2191 DUBLIN 6500 Frantz Road Dublin, Ohio 43017 (614) 798-8818 FRIENDSHIP VILLAGE OF DUBLIN 6000 Riverside Drive Dublin, Ohio 43017 (614) 923-0575 GAHANNA 850 North Hamilton Road Gahanna, Ohio 43230 (614) 337-4605 GAHANNA NORTH STYGLER ROAD 67 North Stygler Road Gahanna, Ohio 43230 (614) 475-7024 GROVE CITY 2365 Old Stringtown Road Grove City, Ohio 43123 (614) 875-1884 JOHNSTOWN 730 West Coshocton Street Johnstown, Ohio 43031 (740) 967-6500 NEWARK 6 North Park Place Newark, Ohio 43055 (740) 349-7888 REYNOLDSBURG 6887 East Main Street Reynoldsburg, Ohio 43068 (614) 416-0400 WEST COLUMBUS 130 North Wilson Road Columbus, Ohio 43204 (614) 351-2100 WESTERVILLE 450 South State Street Westerville, Ohio 43081 (614) 839-2265 2010 Financial Review Net income for the year ended December 31, 2010 was $4.6 million or $2.96 per share compared to net income of $3.6 million or $2.32 per share for the year ended December 31, 2009. The primary source of Heartland BancCorp’s revenue is net interest income from its investment and loan portfolios less its cost of deposits and borrowings. Net interest income before provision for loan loss for 2010 grew 8% to $20.4 million compared to $18.8 million for 2009. Provision for loan loss of $1.9 million for the full year 2010 compared to $1.6 million for all of 2009. The added provision in 2010 was used to increase the Bank’s allowance for loan loss while 2010 loan charge-offs at .32% of average loans outstanding remained at 2009 levels. The improvement in net interest income resulted from the combined effect of a 27% decline in the Bank’s cost of funds less a 4% drop in the yield on earning assets. Lower funding cost resulted from a positive shift in deposit mix to lower cost non-interest bearing transaction and money market accounts that increased from 2009 18% and 22% respectively. This increase in lower cost deposits enabled Heartland Bank to drive significant reductions in its funding cost and improvement in its net interest income. These favorable contributors to net interest income were partially offset by a reduction in the yield in the loan portfolio and an increase in lower yielding securities both the result of continuation of the low interest rate environment during 2010. Total non-interest income of $2.7 million in 2010 compares to $1.9 million for 2009. The lower level of non-interest income in 2009 was due to a one time charge to earnings totaling $990 thousand resulting from the mark-to-market of an other than temporarily impaired investment security. The decline in service charges during 2010 resulted from the implementation of changes to Regulation E during the third quarter of 2010. Regulation E restricts banking institutions from charging overdraft fees on ATM and debit card transactions absent a customer’s opt-in to overdraft coverage. Non-interest or operating expense of $14.9 million in 2010 increased 6% over non-interest expense of $14.0 million in 2009. Salary and employee benefits expense for 2010 increased $313 thousand or 4% verses the year ended 2009. The increase was partially attributable to a 2% increase in staffing added due to the increasing banking related regulatory requirements and higher health insurance costs in 2010. Other operating expense increased $310 thousand year-over-year due to increased loan related collection expenses in 2010. Total assets outstanding increased 2% to $537 million at year-end 2010, an increase of $13 million from assets of $524 million at the end of 2009. Loan and deposit volumes have been influenced significantly during 2010 and 2009 by overall economic factors including market interest rates, consumer confidence, fluctuations in the unemployment rate, lower levels of business and consumer spending as well as changes in regulations affecting banking institutions. We continued to implement initiatives to enhance our loan quality and grow our retail deposit relationships while improving our productivity during 2010. Net loans outstanding declined slightly to $388 million, down 1% under loans of $393 million at the end of 2009. The decline in loans outstanding resulted from continued weak demand in both the commercial and retail lending sectors. Deposits increased 2% to $462 million at December 31, 2010. A key element of Heartland’s deposit strategy was focused on growing our transaction account deposit base while reducing our dependence on public funds and larger non-core certificate of deposit accounts in 2010. Total shareholders’ equity remained strong growing to $45.2 million, up 2% from $44.3 million at year-end 2009. Based upon shares outstanding the book value of shareholders’ equity increased from $28.83 at year-end 2009 to $29.46 per share at December 31, 2010. Among the financial strengths of Heartland BancCorp is our capital position, which exceeds regulatory guidelines and compares favorably to our peers and other Ohio based banks. Tier1 leverage, Tier 1 Risk based and Total Risk Based Capital ratios were 8.6%, 12.4%, and 13.4% respectively as of December 31, 2010. Regulatory requirements for a well-capitalized bank are 5%, 6%, and 10% for Tier 1 Leverage; Tier 1 Risk based and Total Risk Based Capital Ratios respectively. Further enhancing shareholder value dividends per share of common stock totaled $1.28 representing a dividend yield of 5.63% on the average market price of $22.73 per share for 2010. Dividends paid resulted in a dividend payout ratio of 43% for 2010. Our conservative culture, risk management practices, and quality people throughout the last 100 years have enabled Heartland BancCorp to successfully reach and celebrate our Centennial. We believe Heartland BancCorp continues to be strategically positioned to capitalize on opportunities enhancing our shareholders’ interest as the economy improves. I would like to take this opportunity to thank our shareholders, directors, ambassadors, customers and employees for their continued support and confidence in Heartland BancCorp. We truly value your business and look forward to serving you for another 100 years. Best personal regards, Tiney M. McComb Chairman and CEO Heartland BancCorp and Bank Directors Heartland BancCorp Officers I. Robert Amerine Chairman, ISCO, Inc. Arthur G.H. Bing M.D. Plastic & Reconstructive Surgeon Tiney M. McComb Chairman & CEO G. Scott McComb Vice Chairman & President Jay B. Eggspuehler, Esq. Wiles, Boyle, Burkholder & Bringardner Co., L.P.A. I. Robert Amerine Secretary Jodi L Garrison, CPA Partner, Hirth, Norris & Garrsion, LLP George R. Smith Executive Vice President, Chief Financial Officer John R. Haines Retired, John R. Haines Insurance Agency David C. Kotary Principal, Brower Insurance Agency, LLC Gerald K. McClain President, The Jerry McClain Company, Inc. G. Scott McComb President & CEO, Heartland Bank Tiney M. McComb Chairman of the Board Jack J. Eggspuehler President, Aerosafe, Inc., Director Emeritus Cheryl C. Poulton President, Tech International, Director Emeritus Heartland Investment Services Mark Posey Investment Representative Jason Ellinger Investment Representative Heartland Bank Senior Management Tiney M. McComb Chairman G. Scott McComb President and CEO George R. Smith Executive Vice President, Chief Financial Officer David P. Curby Senior Vice President, Mortgage Lending Robert F. Halley Senior Vice President, Commercial Relationship Manager Steven C. Hines Senior Vice President, Commercial Relationship Manager Mark S. Kelly Senior Vice President, Business Development & Support Services Donna J. Holycross Vice President, Director of Marketing Cheryl L. Krouse Vice President, Retail Administration Manager Mark A. Matthews Vice President, Credit Review Linda E. Miller Vice President, Corporate Secretary Edmund W. Smallwood, Jr. Vice President, Retail Sales Administrative Officer Stephanie W. Toalston Vice President, Director of Human Resources Lois E. Ellis Assistant Vice President, Compliance Officer Original Croton Bank 1911 heartlandbank.com Heartland Bank Launches iPhone App! Feb. 2, 2011 Member FDIC 1996 Groundbreaking of Corporate Office in Gahanna Groundbreaking of Corporate Office in Gahanna 1995 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. Worldwide access at heartlandbank.com. 2010 Financial Review Net income for the year ended December 31, 2010 was $4.6 million or $2.96 per share compared to net income of $3.6 million or $2.32 per share for the year ended December 31, 2009. The primary source of Heartland BancCorp’s revenue is net interest income from its investment and loan portfolios less its cost of deposits and borrowings. Net interest income before provision for loan loss for 2010 grew 8% to $20.4 million compared to $18.8 million for 2009. Provision for loan loss of $1.9 million for the full year 2010 compared to $1.6 million for all of 2009. The added provision in 2010 was used to increase the Bank’s allowance for loan loss while 2010 loan charge-offs at .32% of average loans outstanding remained at 2009 levels. The improvement in net interest income resulted from the combined effect of a 27% decline in the Bank’s cost of funds less a 4% drop in the yield on earning assets. Lower funding cost resulted from a positive shift in deposit mix to lower cost non-interest bearing transaction and money market accounts that increased from 2009 18% and 22% respectively. This increase in lower cost deposits enabled Heartland Bank to drive significant reductions in its funding cost and improvement in its net interest income. These favorable contributors to net interest income were partially offset by a reduction in the yield in the loan portfolio and an increase in lower yielding securities both the result of continuation of the low interest rate environment during 2010. Total non-interest income of $2.7 million in 2010 compares to $1.9 million for 2009. The lower level of non-interest income in 2009 was due to a one time charge to earnings totaling $990 thousand resulting from the mark-to-market of an other than temporarily impaired investment security. The decline in service charges during 2010 resulted from the implementation of changes to Regulation E during the third quarter of 2010. Regulation E restricts banking institutions from charging overdraft fees on ATM and debit card transactions absent a customer’s opt-in to overdraft coverage. Non-interest or operating expense of $14.9 million in 2010 increased 6% over non-interest expense of $14.0 million in 2009. Salary and employee benefits expense for 2010 increased $313 thousand or 4% verses the year ended 2009. The increase was partially attributable to a 2% increase in staffing added due to the increasing banking related regulatory requirements and higher health insurance costs in 2010. Other operating expense increased $310 thousand year-over-year due to increased loan related collection expenses in 2010. Total assets outstanding increased 2% to $537 million at year-end 2010, an increase of $13 million from assets of $524 million at the end of 2009. Loan and deposit volumes have been influenced significantly during 2010 and 2009 by overall economic factors including market interest rates, consumer confidence, fluctuations in the unemployment rate, lower levels of business and consumer spending as well as changes in regulations affecting banking institutions. We continued to implement initiatives to enhance our loan quality and grow our retail deposit relationships while improving our productivity during 2010. Net loans outstanding declined slightly to $388 million, down 1% under loans of $393 million at the end of 2009. The decline in loans outstanding resulted from continued weak demand in both the commercial and retail lending sectors. Deposits increased 2% to $462 million at December 31, 2010. A key element of Heartland’s deposit strategy was focused on growing our transaction account deposit base while reducing our dependence on public funds and larger non-core certificate of deposit accounts in 2010. Total shareholders’ equity remained strong growing to $45.2 million, up 2% from $44.3 million at year-end 2009. Based upon shares outstanding the book value of shareholders’ equity increased from $28.83 at year-end 2009 to $29.46 per share at December 31, 2010. Among the financial strengths of Heartland BancCorp is our capital position, which exceeds regulatory guidelines and compares favorably to our peers and other Ohio based banks. Tier1 leverage, Tier 1 Risk based and Total Risk Based Capital ratios were 8.6%, 12.4%, and 13.4% respectively as of December 31, 2010. Regulatory requirements for a well-capitalized bank are 5%, 6%, and 10% for Tier 1 Leverage; Tier 1 Risk based and Total Risk Based Capital Ratios respectively. Further enhancing shareholder value dividends per share of common stock totaled $1.28 representing a dividend yield of 5.63% on the average market price of $22.73 per share for 2010. Dividends paid resulted in a dividend payout ratio of 43% for 2010. Our conservative culture, risk management practices, and quality people throughout the last 100 years have enabled Heartland BancCorp to successfully reach and celebrate our Centennial. We believe Heartland BancCorp continues to be strategically positioned to capitalize on opportunities enhancing our shareholders’ interest as the economy improves. I would like to take this opportunity to thank our shareholders, directors, ambassadors, customers and employees for their continued support and confidence in Heartland BancCorp. We truly value your business and look forward to serving you for another 100 years. Best personal regards, Tiney M. McComb Chairman and CEO Heartland BancCorp and Bank Directors Heartland BancCorp Officers I. Robert Amerine Chairman, ISCO, Inc. Arthur G.H. Bing M.D. Plastic & Reconstructive Surgeon Tiney M. McComb Chairman & CEO G. Scott McComb Vice Chairman & President Jay B. Eggspuehler, Esq. Wiles, Boyle, Burkholder & Bringardner Co., L.P.A. I. Robert Amerine Secretary Jodi L Garrison, CPA Partner, Hirth, Norris & Garrsion, LLP George R. Smith Executive Vice President, Chief Financial Officer John R. Haines Retired, John R. Haines Insurance Agency David C. Kotary Principal, Brower Insurance Agency, LLC Gerald K. McClain President, The Jerry McClain Company, Inc. G. Scott McComb President & CEO, Heartland Bank Tiney M. McComb Chairman of the Board Jack J. Eggspuehler President, Aerosafe, Inc., Director Emeritus Cheryl C. Poulton President, Tech International, Director Emeritus Heartland Investment Services Mark Posey Investment Representative Jason Ellinger Investment Representative Heartland Bank Senior Management Tiney M. McComb Chairman G. Scott McComb President and CEO George R. Smith Executive Vice President, Chief Financial Officer David P. Curby Senior Vice President, Mortgage Lending Robert F. Halley Senior Vice President, Commercial Relationship Manager Steven C. Hines Senior Vice President, Commercial Relationship Manager Mark S. Kelly Senior Vice President, Business Development & Support Services Donna J. Holycross Vice President, Director of Marketing Cheryl L. Krouse Vice President, Retail Administration Manager Mark A. Matthews Vice President, Credit Review Linda E. Miller Vice President, Corporate Secretary Edmund W. Smallwood, Jr. Vice President, Retail Sales Administrative Officer Stephanie W. Toalston Vice President, Director of Human Resources Lois E. Ellis Assistant Vice President, Compliance Officer Original Croton Bank 1911 heartlandbank.com Heartland Bank Launches iPhone App! Feb. 2, 2011 Member FDIC 1996 Groundbreaking of Corporate Office in Gahanna Groundbreaking of Corporate Office in Gahanna 1995 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. Worldwide access at heartlandbank.com. 

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