Heartland BancCorp
Annual Report 2015

Plain-text annual report

Heartland BancCorp Parent Company of Heartland Bank ANNUAL REPORT 2015 April 2, 2016 Dear Shareholders, 2015 continued the financial trends we have witnessed for the last few years in Central Ohio and ultimately, contributed to the success of Central Ohio’s Community Bank, Heartland. After experiencing continued momentum from the economy and a thirst for our brand of community banking, we were compelled to explore new initiatives, expansion, and personnel growth for an already high performing team. We continue to plan for the future by investing in our people, processes, and technology while holding the line on accountability. Our strategy of seeking clients that appreciate value in their banking relationship, and providing value to that relationship, continues to be a winner in the marketplace. For the fifth straight year, we have been ranked in American Banker magazine’s “Top 200 Community Banks”, ranking 77th, validating that our core strategy is indeed in demand and effective. The continued merger and acquisition market in our industry has created a crease of opportunity that can be taken advantage of by only the most astute and consistent institutions. Heartland’s flexibility, agility, speed to market, and “value add” has positioned us well in a changing landscape. Being Central Ohio’s Community Bank has never been more advantageous, and we have positioned ourselves well for this movement. This position, along with a robust local economy, has fueled physical expansion of the branch network to include our Pickerington location with two other Central Ohio communities, Hilliard and Clintonville, following closely as branches are in the planning stages in these locations. As a result of the continued growth of the bank, our corporate offices and operational departments have been displaced to multiple locations around Columbus. This, along with the need for more office space, has contributed to the decision to develop a new corporate center. While we gave a valiant effort to restore the original Port Columbus Airport Terminal, the costs associated with this leased facility outweighed the long term objectives of the bank. We’re proud to have partnered with the City of Whitehall, on a six acre parcel along Hamilton Road where we will develop a 60,000 sq. ft., state-of-the-art corporate center. This will enable the bank to become more efficient in corporate operations, promote employee health and wellness, aid in recruiting the best talent, and foster a new partnership with an up and coming Central Ohio community in need of its own community bank. All of this growth and success is due to the fine team we have built over the years at Heartland. Growing bankers from within has been a mainstay of the organization, and there is no better example than 20 year veteran, Carrie Almendinger, who was promoted to Executive Vice President and Chief Financial Officer this past spring. To address retirements, the changing landscape of banking, along with our continued growth, we implemented a re-alignment of management in the fall, adding expertise and management experience to the team with Brian Mauntel, our current Chief Operations Officer. The addition and evolution of the Distribution Strategies Group, headed by veteran, Ashley Trout, will allow the bank to grow and perfect our internal processes while simultaneously deploying new technology and increasing delivery of our community bank offerings. Many more enhancements and team additions have occurred improving our people portfolio, sales management, credit underwriting, and operations. Put quite simply, you win with happy people, and we remain committed to our team members and their families. The commercial lending group has been an asset of the bank since its modern day inception, being known as a leader in SBA and small business financing. Their continued impact on our communities helps support the growth and success of Central Ohio businesses. This year, we returned to the bank’s roots by establishing an agribusiness lending group that will span the state of Ohio. We feel that this will diversify our loan portfolio, create long lasting relationships, and begin the delivery of our brand to a wider footprint in the region. Leveraging and embracing our roots in agriculture, along with our relationships and long lasting support of Ohio 4H, positions us well within this industry across the state. All of this success and the emergence of Basel III required the bank to seek more capital in 2015. The current rate environment provided a unique opportunity for the bank to deliver a quality return on investment for investors while not diluting shareholders’ ownership. In the fall, $5.4 million was raised through a sub-debt offering at a rate of 4.99%, with $5.1 million fixed for 10 years. This internal effort saved the bank over $300,000 in costs and secured new capital at a rate not seen by any financial institution below $1 billion in assets nationally. The result speaks volumes to the consistence in performance, profitability, and strength your board of directors has delivered, as well as the confidence in the strength of your community bank and its management team. Collectively, these attributes form the definition of shareholder value. As we forge into 2016, we will stay the course, seeking those who seek value from their banking relationship. Your direct involvement in that promotion is greatly appreciated. Share your Heartland story with your friends and colleagues, and thank you for your continued support and referrals. Community banking is alive and well in the Heartland, and we’re just getting started. G. Scott McComb Chairman, President and CEO THE YEAR IN REVIEW O R E G DEMA N D D E P OSIT BALANC % 27.57 H W T Federal Financial Institutions Examination Council’s UBPR (Uniform Bank Performance Report) RANKED #77 on Top 200 Community Banks and Thrifts List 12 $27MM E P OSIT BALANC First year growth in DEMA N D D Agribusiness Lending E G R O W T H Completed $5.4MM sale of fixed and variable rate subordinated notes Opened 12th branch in Pickerington Highest ranking for financial strength and security. COLUMBUS BUSINESS FIRST #7 SBA LENDERS LIST Ranked by Columbus District and Cincinnati Branch Loans in SBA fiscal 2015 E P OSIT BALANC DEMA N D D SBA U.S. Small Business Administration E G H W R T O #8 in the District of Columbus $9,175,500 in 504 and 7a Loans as of 9/30/15. 9/30/15 is the fiscal year end for the SBA DEMA N D D +12.3% TOTAL ASSET GROWTH! DEMA N D D Flying High in 2015 E G E P OSIT BALANC R O W T Up, Up and Away…… H The inaugural launch of the Heartland Bank hot air balloon took place in August of 2015 at the 50th Annual Reynoldsburg Tomato Festival. The balloon supports the bank’s marketing, public relations and special event efforts while complimenting brand-building and awareness strategies. Our Balloon Crew flew over the Pelotonia-Pickerington start line, Little Brown Jug, Ohio State football and Crew SC tailgating, high school football games and Farm Science Review. E P OSIT BALANC E G R DEMAN D D O W T H E POSIT BALANC E G R O W T H 4 Performance and EXCELLENCE The past year signified unparalleled success for Heartland BancCorp, as 2015 financial results represent the most profitable year in its 27 year history. Net income for 2015 increased 34% to $8.1 million or $5.13 per diluted share, following an $879 thousand life insurance benefit. Core earnings for 2015, excluding the life insurance benefit, also achieved record levels, increasing 19% to $7.2 million or $4.57 per diluted share, compared to $6.1 million or $3.87 per diluted share in 2014. Return on average assets and equity were 1.18% and 12.91% respectively for the year, and compare to .99% and 10.57% for 2014. Improved operating results were further driven by higher loan quality, which allowed for reduced loan loss provision expense by $495 thousand, down 39% compared to 2014. In addition, a 9% growth in loan balances and 28% growth in demand deposit balances helped drive net interest margin higher to 4.02%, compared to 4.00% for the prior year. Finally, Heartland continued its history of managing expenses, evidenced by the efficiency ratio of 59.75%, which is among the best in the Bank’s peer group. Heartland BancCorp’s financial performance in 2015 reflects the strength and commitment of the board of directors, and quality of the Heartland team. Heartland BancCorp ended 2015 with strong liquidity, and the Company exceeded all regulatory requirements in 2015. Capital levels were strengthened as a result of higher earnings during the year, yet capital planning was a key focus of management due to the current and projected growth trajectory. In November, Heartland BancCorp completed a private placement to accredited investors of $5.4 million in aggregate principal of fixed and variable rate subordinated promissory notes, with a weighted interest rate of 4.986%. The proceeds will give Heartland the opportunity to further execute its business plan and meet the growing demand from clients and the marketplace. Overview of Operations: Net interest income, before provision for loan loss, for 2015 was $25.4 million, up 11% or $2.6 million compared to 2014. Interest income of $28.8 million for 2015 increased $3.1 million or 12%, and interest expense on deposits and borrowings increased $455 thousand or 16% compared to 2014. The expectation of a stable economy, improved loan quality, and expected loan growth, led management to record a provision for loan loss of $760 thousand in 2015. With net loan charge- offs of $395 thousand, this resulted in an increase of $365 thousand to the allowance for loan loss, which ended the year at $5.7 million. The allowance as a percent of loans outstanding was 1.05% at the end of 2015 representing a decline from 1.06% at the end of 2014. Net interest income, after provision for loan loss, totaled $24.7 million, up $3.1 million or 14% in 2015 compared to 2014. Non-Interest income of $3.9 million for 2015 increased $844 thousand or 27% compared to 2014. The higher non-interest income in 2015 was due primarily to life insurance proceeds, which totaled $879 thousand. Excluding the life insurance income, non-interest income for 2015 decreased by $41 thousand due to lower net gains realized on the sale of available-for-sale investment securities, which declined by $118 thousand in 2015. Additionally, gains on sales of other real estate owned totaled $5 thousand in 2015, a decrease of $205 thousand compared to 2014. Non-Interest expense was $17.6 million for 2015, up $1.2 million or 8% over 2014. Total salary and employee benefit expense increased $1.0 million or 11.2% in 2015. The higher employee cost was due to increased staff for the new Pickerington branch, an executive management team addition to further increase management expertise to facilitate continued growth, and higher employee and incentive costs related to strong loan production. Professional fees totaling $498 thousand in 2015 declined $274 thousand or 36%, reflecting a decline in legal expense from improved loan quality. Financial Condition: Total assets increased $79.8 million, or 12%, to $729.5 million as of December 31, 2015, compared to $649.7 million in 2014. Net loans outstanding increased to $541.0 million, up $42.4 million or 9% compared to net loans of $498.6 million at the end of 2014. Total commercial loans (excluding agriculture) increased $25 million, up 7% as of December 31, 2015, of which commercial (non-real estate) loans grew 12% to $51.1 million, and commercial real estate loans increased 6% to $353.1. As a result of the focus on Agricultural lending, net Agricultural loan balances grew to $12.8 million as of December 31, 2015. Retail loans outstanding totaled $130.0 million, an increase of 4% over 2014, with residential real estate loans up 4% to $94.3 million. Overall asset quality continued to improve during 2015, with non- performing assets declining to .72% of total assets, down 10 basis points from .82% as of December 31, 2014. Heartland BancCorp funds earning asset growth through its deposit relationships. Total deposits as of December 31, 2015 were $623.0 million, up 12% from $556.2 million as of December 31, 2014. A key element of Heartland’s deposit strategy continues to focus on growing commercial and retail transaction accounts. This strategy is evidenced by the $30.1 million or 28% growth in non-interest bearing demand deposit accounts during 2015. Shareholders’ Equity: Total shareholders’ equity remained strong, growing 10% to $66.7 million in 2015. Based upon shares outstanding, the book value of shareholders’ equity increased 9% from $39.05 at year-end 2014 to $42.61 per share as of December 31, 2015. Among the financial strengths of Heartland BancCorp is its capital position, which exceeds regulatory guidelines and compares favorably to peers and other Ohio based banks. Tier 1 leverage, Common equity Tier 1, Tier 1 risk based and Total risk based capital ratios were 9.20%, 11.95%, 11.95%, and 12.99% respectively as of December 31, 2015. Regulatory requirements for a “well-capitalized bank” are 5%, 6.5%, 8%, and 10% respectively for these measurements. In 2015, Heartland BancCorp paid a dividend of $1.47 per share, representing a yield of 3.26% on the weighted average market price of $45.17 per share for 2015. Dividends paid resulted in a payout ratio of 28.26% for 2015. Heartland BancCorp CONSOLIDATED BALANCE SHEETS December 31, 2015 and 2014 CONSOLIDATED STATEMENTS OF INCOME Years Ended December 31, 2015 and 2014 2015 2014 Interest Income Assets Cash and cash equivalents Available-for-sale securities Held-to-maturity securities, fair value $6,407,215 and $6,914,217 at December 31, 2015 and 2014, respectively Loans, net of allowance for loan losses of $5,715,827 and $5,350,637 at December 31, 2015 and 2014, respectively 36,994,171 22,561,068 114,492,664 101,479,692 6,044,094 6,454,963 540,958,372 498,585,125 Loans Securities Taxable Tax-exempt Other Premises and equipment 13,506,350 12,653,144 Interest Expense Non-marketable equity securities 2,658,239 2,655,439 Deposits Foreclosed assets held for sale - 108,082 Borrowings Total interest income 28,754,809 25,698,345 1,958,082 1,803,108 Total interest expense Net Interest Income Provision for Loan Losses 417,353 1,722,934 9,327,518 1,416,804 417,353 1,574,075 1,215,898 174,341 $ 729,496,581 $ 649,682,288 Net Interest Income After Provision for Loan Losses 24,688,933 21,591,987 Non-interest income Service charges 1,925,467 1,980,529 Net gain and commissions on loan sales 241,742 Net realized gains on sales of available-for-sale securities 18,291 $ 139,226,242 $ 108,394,566 Benefit in excess of life insurance cash value Net realized gain on sales of foreclosed assets Saving, NOW and money market 219,076,813 203,367,315 Other 264,651,203 244,394,645 Total non-interest income 3,950,240 3,105,952 Interest receivable Goodwill Deferred income taxes Life insurance assets Other Total assets Liabilities and Shareholders’ Equity Liabilities Deposits Demand Time Total deposits Short-term borrowings Long-term debt Interest payable and other liabilities 622,954,258 556,156,526 29,150,118 28,395,316 5,460,000 - 5,270,849 4,421,322 Non-interest Expense Salaries and employee benefits Net occupancy and equipment expense Total liabilities 662,835,225 588,973,164 Shareholders’ Equity Common stock, without par value; authorized 5,000,000 shares; issued 2015 - 1,564,581 shares, 2014 - 1,554,457 shares Retained earnings 23,872,599 23,558,806 41,991,488 36,160,565 Accumulated other comprehensive income (loss) 797,269 989,753 Total shareholders’ equity 66,661,356 60,709,124 Total liabilities and shareholders’ equity $ 729,496,581 $ 649,682,288 Book value per share $ 42.61 $ 39.05 Data processing fees Professional fees Marketing expense Printing and office supplies State financial institution tax FDIC Insurance premiums Other Total non-interest expense Income before Income Tax Provision for Income Taxes Net Income Basic Earnings Per Share Diluted Earnings Per Share 2015 2014 $ 25,775,945 $ 22,767,132 1,376,312 1,551,627 50,925 1,256,494 1,626,882 47,837 3,256,624 2,834,757 49,252 16,601 3,305,876 2,851,358 25,448,933 22,846,987 760,000 1,255,000 121,695 136,701 209,901 - 657,126 5,308 879,488 879,945 10,331,707 1,842,702 1,082,143 498,406 545,990 158,877 423,926 411,000 9,294,269 1,706,778 1,018,464 772,812 598,036 165,248 373,224 342,089 2,261,155 2,060,441 17,555,906 16,331,361 11,083,267 2,955,567 $ 8,127,700 $ $ 5.21 5.13 8,366,578 2,285,364 6,081,214 3.92 3.87 $ $ $ 6 Keeping our community SMILING Mark Pi Jr. President at Sunrise Foods “Sunrise began to grow very quickly and several other banks were unable to meet our needs. Heartland Bank partnered with Ohio Development Services Agency on their Collateral Enhancement Program and was able to finance us when other banks turned us down. Heartland Bank has been able to meet our banking needs ever since!” Victoria Burton CFO at Burton Metal Finishings “Heartland Bank stood beside the Burton family when many banks would have walked away. They represent many things that are difficult to find in the business world today. The employees of the bank personally know who you are and find ways with their expertise to help get you the financing that fits your needs.” Brad Jalovec Route 62 BBQ “Heartland Bank has been my partner in business since we opened in 2007. Being located in a small, rural community, I was looking for a bank that would take a personal interest in my business and financial matters. Over the past eight years, I have been impressed with their professional approach and personal touch. I look forward to continuing our relationship for many years to come.” Christian and Sybil McCoy Cookie Bouquet “Without Heartland Bank, I wouldn’t be in business. Cookie Bouquets was a struggling on-line provider of cookies arranged in floral like bouquets for special occasions and holidays. I wanted to buy it and capitalize on its footprint in the world of e-Commerce. Having just completed my one year anniversary, I couldn’t be happier and more proud of our performance to date. Heartland Bank is a true trusting partner in every sense of the word.” David Patel Indus Hotels “Indus Hotels is committed to building long-term relationships with our customers, employees, investors. Heartland and our Bank shares that same passion. Most importantly, Heartland Bank was there for us when we needed them the most; at the depth of the last recession. For that, we are extremely grateful. Thank You, Team Heartland!” Taking Stock in Your Community When you buy shares in Heartland BancCorp, you’re supporting an entire community and a trusted institution that shares your values of hard work, personal commitment, community support and sound financial practices. Interested in becoming a Shareholder? To learn more about Heartland BancCorp shares, please contact one of the following: • Scott McComb, Chairman, President and CEO of Heartland Bank or Jennifer Eckert, Vice President, Compliance Officer and Corporate Secretary (614) 337-4600 • Your Financial Advisor • Heartland Investment Services (614) 839-2265 Heartland BancCorp Total Return Performance Heartland BancCorp SNL Bank Pink >$500 M SNL Midwest Bank 275 250 225 200 175 150 125 100 80 l e u a V x e d n I HLAN Heartland BancCorp is currently quoted on the over-the-counter (OTC) Bulletin Board Service under the symbol HLAN. Heartland BancCorp I ir.HeartlandBank.com 12/2011 12/2012 12/2013 12/2014 12/2015 This graph depicts the yearly percentage change in Heartland BancCorp’s cumulative total shareholder return against the cumulative return of the SNL Bank Pink Sheet index of banking institutions over $500 million in total assets and the SNL Midwest Bank index over the last 5-year fiscal periods. Calculations include the reinvestment of dividends and are indexed to the base year measurement point (closing price on the last trading day before the beginning of the registrant’s fifth preceding fiscal year). Statements made are a reflection of past performance of the bank and holding company and should not be considered a projection of future performance. Investments involve varying degrees of risk, including possible loss of principal. Funds held in corporate stock are not considered a deposit of the bank or bank holding company, not guaranteed by the bank or holding company and are not insured by the FDIC or any government agency and may lose value. 8 Caring for our COMMUNITIES A Tradition of Giving 104.9 The River’s Mission Backpack NES Hop (PACT) Asian American Commerce Group OCAT (Airport) Better Business Bureau of Central Ohio CD102.5 For The Kids Central Ohio Diabetes Association Columbus Kappa Foundation Crew Soccer Foundation Croton Church of Christ Food Pantry Dublin Food Pantry Ernie Reyes World Martial Arts Association Gahanna Lincoln High School DECA Gahanna Residents in Need (G.R.I.N.) Gahanna Soccer Association Sponsor Grove City Food Pantry Emergency Services, Inc. Grow Licking County Johnstown Athletic Boosters Johnstown Food Pantry Licking County Courthouse Lighting Committee LifeTown Lessons For Life Lutheran Social Services Food Pantry An Evening of Ohio Wine and Food, benefiting Ohio 4-H Youth Development Ohio 4-H Celebration of Youth Ohio Children’s Hunger Alliance Oldtime Farming Festival Pelotonia Relay For Life Reynoldsburg Helping Hands Food Pantry Rhema Christian Center Southwestern City Schools St. Matthews Catholic Church - Gahanna Stephanie Spielman Fund The James Cancer Hospital The Open Shelter Tyler’s Light UNCF Walk for Education United Way of Central Ohio USO Victory Ministries For Children’s Outreach Program March of Dimes - March for Babies Vineyard Grace Fellowship Masonic Learning Centers for Children with Dyslexia Westerville Area Resource Ministry (W.A.R.M.) Mental Health America of Licking County-YES Program 2015 at a Glance Columbus Crew SC Partnership: This Preferred Banking Partner sponsorship has provided Heartland Bank with the opportunity to reach a new demographic of customers with on-site signage at MAPFRE Stadium, suite access to every event, pre-game plaza appearances, a Crew SC debit/ credit card program and endorsement with Crew SC Midfielder, Wil Trapp. Employee Initiatives 104.9 The River’s Mission Backpack 18th annual Heartland Bank Charity Golf Classic Girl Scouts Financial Literacy Johnstown Monroe’s Searfoss Elementary School 4th grade Financial Literacy 8th Annual Money Matters Free Financial Summit Tiney’s Team Pelotonia ride for cancer research Silent Auction at annual Holiday Party to benefit local food banks and non-profits Heartland Bank Sponsored Events Farm Science Review Gahanna Creekside Blues & Jazz Festival Grove City Arts in the Alley Hartford Fair Hilltop Bean Dinner Johnstown Fireman’s Festival Newark Bluegrass on Main Street North Market’s Craft Brew Festival Reynoldsburg Tomato Festival Summer Jam at Westgate Park Westerville Music & Arts Festival OSDC Awards The Ohio Statewide Development Corporation named Heartland Bank as their ‘Bank of the Year’ and VP, Commercial Relationship Manager, Bob Crow, as their ‘Lender of the Year’ for their work with OSDC to obtain financing approval for six different businesses representing a total projected investment of over $6 million. Celebrating pre-game at the Crew SC v. Timbers MLS Cup Championship match at MAPFRE Stadium Agribusiness Intern Brandon Spangler is honored by CEO Scott McComb and VP, Manager of Agribusiness Joel Oney for his work in our Internship Program OSDC Bank of the Year Celebrating Dublin’s St. Patrick’s Day Parade Proud to partner with 104.9 The River to accept school supply donations for Mission Backpack OSDC Lender of the Year - Bob Crow Hosted Tailgate for the Troops event prior to the OSU v. Northern Illinois game Crew SC Midfielder, Wil Trapp #20, hands out trophies at the Gahanna Fall Open Heartland Bank RV Made appearances at both Ohio State football games and Columbus Crew SC matches, local parades and festivals and youth soccer events in central Ohio. The RV even served as the backdrop for the USO Tailgate for the Troops cookout that served 250 military veterans this fall. Product Launch: Launched free suite of security features in 2015, including Trusteer Rapport by IBM, an online fraud protection software that mitigates financial malware infections and Card Valet, a smartphone app that not only detects unauthorized account activity, but allows users to control debit card usage. Heartland Bank Tiney’s Team at the Pelotonia 100 mile finish line Hilliard dignitaries join CEO Scott McComb at the groundbreaking ceremony on August 26 10 Leadership and TEAMWORK Heartland Senior Management Team G. Scott McComb Chariman, President and CEO Our Senior Management team represents what Heartland Bank is all about: people and the relationships we build as a community bank. Each member not only brings detailed insight, knowledge and expertise to Heartland Bank, but also a passion for helping our customers and communities plan, grow and succeed. Carrie L. Almendinger EVP, Chief Financial Officer Brian T. Mauntel EVP, Chief Operating Officer William A. Daily, Jr. SVP, Commercial Lending Manager Joseph A. Duffey VP, Director of Credit Administration Mark J. Posey VP, Director of Investment Services, Heartland; Investment Executive, Infinex Alissa R. Schierberl AVP, Director of Human Resources Steven C. Hines EVP, Chief Administration Officer David P. Curby SVP, Mortgage Lending Benjamin J. Babcanec VP, Head of Retail Administration Jennifer L. Eckert VP, Compliance Officer, Corporate Secretary Ashley A. Trout VP, Director of Distribution Strategies Gretchen A. Hof AO, Director of Marketing Heartland BancCorp Directors Arthur G.H. Bing M.D. Retired Plastic & Reconstructive Surgeon David C. Kotary Senior Vice President Marsh & McLennan Agency, LLC Gary D. Paine Owner Pilot Freight Services William A. Dodson, Jr. EVP/Community Relations Director, Rhema Christian Center Gerald K. McClain President The Jerry McClain Company, Inc. William J. Schottenstein Principal Arshot Investment Corporation Jay B. Eggspuehler, Esq. Isaac Wiles Jodi L. Garrison CPA, Partner Hirth, Norris & Garrsion, LLP John R. Haines Retired John R. Haines Insurance Agency G. Scott McComb Chairman, President and CEO Heartland Bank Robert C. Overs Retired, EVP & COO Technical Rubber Company, Inc. George R. Smith Retired, EVP & CFO Heartland Bank Richard A. Vincent President & CEO Osteopathic Heritage Foundation and Osteopathic Heritage Foundation of Nelsonville Heartland BancCorp Directors Emeritus Heartland BancCorp Officers Heartland Insurance Services I. Robert Amerine Chairman, American Apex Corporation G. Scott McComb Chairman, President and CEO Agent Representation Marsh & McLennan Agency, LLC. Jack J. Eggspuehler President, Aerosafe, Inc. Jay B. Eggspuehler, Esq. Vice Chairman Tiney M. McComb Founder, Heartland BancCorp Jodi L. Garrison Secretary Cheryl C. Poulton Executive Chairman, Tech International Carrie L. Almendinger Treasurer Heartland Investment Services Mark J. Posey VP, Director of Investment Services, Heartland; Investment Executive, Infinex CENTRAL OHIO FOOTPRINT 1 2 5 14 13 9 7 10 INTERSTATE 71 4 11 8 INTERSTATE 70 6 NEWARK 3 INTERSTATE 270 12 Call Us Today 1. Croton 740-893-2191 9. Westerville 614-839-2265 2. Johnstown 740-967-6500 10. Stygler Road 614-475-7024 3. Grove City 614-875-1884 11. Capitol Square 614-416-0244 4. Wilson Road 614-351-2100 12. Pickerington 614-321-4919 5. Dublin 6. Newark 7. Gahanna 614-798-8818 740-349-7888 614-337-4605 8. Reynoldsburg 614-416-0400 13. Worthington Christian Village 614-846-6076 14. Friendship Village of Dublin 614-923-0575 General Info Heartland BancCorp is a registered Ohio bank holding company and the parent of Heartland Bank, which operates twelve full-service banking offices. Heartland Bank, founded in 1911, provides full service commercial, small business, and consumer banking services; alternative investment services; insurance 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. HeartlandBank.com Proudly serving central Ohio since 1911 Member FDIC NMLS# 440231 Equal Housing Lender Heartland’s Shared Values • Superior service is our highest priority. • Productivity is an integral part of our corporate strategy. • Team players receive the highest rewards. • Quality is rewarded as well as quantity. • Rewards will include advancement, recognition and/or incentive compensation. • Through access to accurate information, we will strive to keep ourselves and our customers informed. • We will constantly seek to improve how we are perceived by our customers. • We will empower our employees to perform their duties in a responsible manner. • We will seek to know our cost of doing business. • We encourage the exploring of new ideas. • Our business is to provide customer satisfaction profitability. • We value loyalty, honesty and integrity in our relationships. • We are committed to the enrichment of our local communities through our involvement. Mission Statement It is Heartland Bank’s mission to provide the best personalized financial services at competitive prices for the economic growth and well being of individuals and businesses within our communities. This goal shall be accomplished through well- trained, caring employees with unquestionable integrity, who practice sound and innovative banking principles, which will maximize bank profits and growth. 850 North Hamilton Road Gahanna, OH 43230 HeartlandBank.com 1 (800) 697-0049 Member FDIC NMLS# 440231 Equal Housing Lender 

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