Heartland BancCorp Annual Report 2016

FY2016 Annual Report · Heartland BancCorp

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Heartland BancCorp

Parent Company of Heartland Bank

ANNUAL REPORT 2016

April 4, 2017

Dear Valued Shareholders,

Central Ohio’s Community Bank once again experienced an outstanding year on all fronts extending the post crisis streak of asset, profitability, infrastructure,
and geographic market growth. We have entered a new chapter for Heartland - one where we will compare ourselves not to our peers, but to high performing
peers. An excellent local economy, along with industry consolidation, has created many new doors for us to walk through. Our continued focus on technology
has strengthened our institution, and our investment and trust in our people has created a world class team, where individual superstars don’t exist. This has
been possible through the leadership of a very wise and prudent board of directors. They share our passion for our mission and empower management to
execute a very precise strategic plan.

With tail winds of a strong local economy, consistent
delivery, industry consolidation, and a consultative sales
approach, your community bank continued to expand its
balance sheet and market share in central Ohio. Heartland
was again honored to be named to the top 200 list at #77 in
American Banker magazine’s “Top 200 Community Banks” in
the nation based on our three year rolling Return on Equity.
Columbus continues to be in the top five cities in America
for job growth, business investment and start-ups, creating
a very desirable environment for business. Our consistent
delivery over time has earned us a stellar reputation in our
marketplace for quality and excellence in banking, but more
importantly, the place for well-crafted solutions, competitive
pricing and terms, and the trust of both clients and non-
clients alike. The continued consolidation in the industry
creates a positive disturbance in the marketplace that we
have been able to capitalize on, being the alternative to big
banks. All of these factors add up to a perfect storm for our
breed of consultative community banking to thrive in - both
in central Ohio and beyond.

Foresight into the marketplace, management of risk, and
prudent strategic discipline is what makes a reputable
board of directors, and we have been fortunate to have had
some of the best Columbus has ever known. In 2016, we
elected three philanthropic, charismatic, and wise men to
the esteemed position of Director Emeritus. Dr. Arthur Bing,
John Haines and Jerry McClain all served admirably for well
over 25 years with Mr. Haines serving 29. We all owe a debt
of gratitude to these trusted and esteemed directors for
their guidance and support. It is through their dedicated
involvement that Heartland is what it is today. We thank you.

Heartland has been fortunate to be able to continue
to expand our footprint while increasing returns to
shareholders. Recently, we announced the development
of our new corporate center to be located in the City of

Whitehall. The combination of the land acquisition, site
development opportunities, and the incentives has enabled
us to establish a best-in-breed facility and branch office. This
was a much needed expansion due to our corporate offices
and operations being scattered across 5 locations. We’re very
excited for the late 4th quarter opening, having all of our
support departments in the same location and enjoying the
efficiencies that are created by this consolidation. In June, we
opened our Hilliard office in Historic Downtown Hilliard. We
have received a warm greeting from this community as we
became their first community bank. We also announced that
we will be expanding to the vibrant and proud community
of Clintonville, marking our 15th central Ohio location.

Why are we expanding when others are contracting? Our
plan consists of strategically placed “lite” branches staffed
with highly trained Universal Bankers who work in smaller
teams to produce more while costing less. The concept
has been years in the making both for the new look, feel
and flow of the hi-tech branch, and the multilayered skill
set of the talented staff - working as a team to perform
transactions, create value for our clients and expand wallet
share. While we have already launched one of these shops,
we have also begun the transformation of our talent to
embrace this very effective delivery method. Leveraging
technology, we see more space between community
banking centers, while being able to serve more clients
across those centers.

Investing in new technology has also been an ongoing
strategic initiative for Heartland. Some of the new releases
are in plain sight while other significant investments may
linger behind the scenes. In the forefront is the launching
of Card Valet, a client controlled card access mobile app,
and IBM’s Trusteer Internet malware protection for business
and consumers. In the background, we have established
numerous process improvements using our core software,

established a cyber security strategic playbook and
strengthened our money laundering and security systems.
We welcomed back a former colleague Tarne Tassniyom who
left us after 5 years to start his own technology company.
After a successful ten year run, Tarne sold his firm and came
home to Heartland to become Director of Technology. We
are confident that this team addition will pay dividends for
years to come as we advance our systems, platforms and
acquisition opportunities.

We have always placed our strongest emphasis on the
people portfolio, our single most valuable asset, and this
year was no different. While establishing higher expectations
for our associates and charging them with having even
higher aspirations, we are now able to further raise the bar
in benefits that successful teams can enjoy. Paid maternity/
paternity leave was established for our young and growing
families. Health savings accounts are now funded with an
annual deposit for those that have healthcare needs, and
we introduced a FOR-U program (Focus on Rejuvenation)
which allows our leadership the opportunity to recharge,
disconnect and encourage their teams to become even
stronger. Team players like to be appreciated for quality
performance, have best-in-market benefits and pay, and
to celebrate when they WIN! Our marketplace is a very
competitive one for top talent and staying on top of our
offering is the key to attracting and retaining TEAM players.

As we approach the $1 Billion mark, we will strive to
maintain and improve on the past success we have enjoyed
together. Thank you for your investment and trust in us.

G. Scott McComb
Chairman, President and CEO

p. 2 I Year in Review

Heartland BancCorp
ANNUAL REPORT 2016

R/E LOAN GROWTH

NON-INTEREST INCOME

RANKINGS & HONORS

Here we
grow again!

As a result of slowly outgrowing our Gahanna
headquarters, Heartland Bank announced plans in
2016 to consolidate operations in a new corporate
center. Working with Ruscilli Construction Company
and the architectural firm of Moody Nolan, our plans
include a two-story, 60,000-square-foot building
located along North Hamilton Road, at the gateway
of Whitehall’s Community Park. The park-side view
of the six acre wooded site will feature an outdoor
veranda that will play host to various corporate
events, staff retreats, business meetings, and/or team
building experiences.

The new corporate center will house approximately
87 employees and will improve efficiencies by
consolidating several business units under one roof.
Employees will enjoy multiple collaboration/ideation
spaces designed to foster innovation, support
business processes, and improve communication
and productivity. Natural light will flood the open
concept work space.

Included within the new corporate center will be a
2,100-square-foot branch office, Heartland’s 15th
in central Ohio, which will feature drive-up teller
stations, an exterior ATM, and a night depository. The
new office will follow the Universal Banker Branch
Staffing Model that was successfully introduced with
Heartland’s Hilliard branch opening in June of 2016.

OUR PEOPLE

TOTAL ASSET GROWTH

Average 169 full-time employees in 2016,
an increase of 8% from 2015.

Asset Per Full Time Employee

$4.48M
$181,665

Revenue Per Full Time Employee

7.10%Increase in

Asset Growth 2016

2016
20.4%

increase

Gains &
Commissions
on Loan Sales up

150%

$94.3M in 2015

$113.6M in 2016

Assisted 212 families
to achieve their home
ownership dreams in 2016!

$241,742 in 2015

$603,849 in 2016

AGRIBUSINESS GROWTH

STOCK PERFORMANCE

DEMAND DEPOSIT GROWTH

LOCATION GROWTH

6% Other Ag Production

4% Equine

8% Poultry Broilers

11% Poultry Eggs

4% Swine

11% Dairy

11% Beef

45% Grain

$58.7M

Total Managed
Ag Portfolio

$64.01

$45

42%

increase

Beginning 2016

End 2016

16.75%

2016

Federal Financial Institutions
Examination Council’s UBPR
(Uniform Bank Performance Report)

#13

Opened 13th Location
Welcome to Hilliard!

American Banker
Magazine
Ranked #77
on Top 200 Community Banks and
Thrifts List May, 2016

Bauer Financial
Highest Rating
for financial strength and security.

U.S. Small Business
Administration
Ranked #8 in 7a Loan Amounts
Ranked #10 in number of 7a Loans
Totaling $8,481,900
in 7a loans through fiscal year end
date 9/30/16.

Columbus Business
First
Ranked #10
SBA Lenders List
by Columbus District and Cincinnati
Branch Loans in SBA, fiscal 2016

p. 2 I Year in Review

Heartland BancCorp
ANNUAL REPORT 2016

R/E LOAN GROWTH

NON-INTEREST INCOME

RANKINGS & HONORS

Here we
grow again!

OUR PEOPLE

TOTAL ASSET GROWTH

Average 169 full-time employees in 2016,
an increase of 8% from 2015.

Asset Per Full Time Employee

$4.48M
$181,665

Revenue Per Full Time Employee

7.10%Increase in

Asset Growth 2016

2016
20.4%

increase

Gains &
Commissions
on Loan Sales up

150%

$94.3M in 2015

$113.6M in 2016

Assisted 212 families
to achieve their home
ownership dreams in 2016!

$241,742 in 2015

$603,849 in 2016

AGRIBUSINESS GROWTH

STOCK PERFORMANCE

DEMAND DEPOSIT GROWTH

LOCATION GROWTH

6% Other Ag Production

4% Equine

8% Poultry Broilers

11% Poultry Eggs

4% Swine

11% Dairy

11% Beef

45% Grain

$58.7M

Total Managed
Ag Portfolio

$64.01

$45

42%

increase

Beginning 2016

End 2016

16.75%

2016

Federal Financial Institutions
Examination Council’s UBPR
(Uniform Bank Performance Report)

#13

Opened 13th Location
Welcome to Hilliard!

American Banker
Magazine
Ranked #77
on Top 200 Community Banks and
Thrifts List May, 2016

Bauer Financial
Highest Rating
for financial strength and security.

U.S. Small Business
Administration
Ranked #8 in 7a Loan Amounts
Ranked #10 in number of 7a Loans
Totaling $8,481,900
in 7a loans through fiscal year end
date 9/30/16.

Columbus Business
First
Ranked #10
SBA Lenders List
by Columbus District and Cincinnati
Branch Loans in SBA, fiscal 2016

p. 4 I Performance & Excellence

Heartland BancCorp
ANNUAL REPORT 2016

CONSOLIDATED BALANCE SHEETS
December 31, 2016 and 2015

CONSOLIDATED STATEMENTS OF INCOME
December 31, 2016 and 2015

Heartland BancCorp

2016 marked another year of consistent achievement of strong financial performance for Heartland BancCorp, as 2016 financial results represent the second most profitable year in

its 28 year history. Net income for 2016 increased 11% to $8.0 million or $4.97 per diluted share, compared to core earnings of $7.2 million, or $4.57 per diluted share in 2015,

excluding a life insurance benefit of $879 thousand. Including the life insurance benefit, earnings in 2015 were $8.1 million, or $5.13 per diluted share. Return on average assets and equity were
1.05% and 11.49% respectively for the year, and compare to 1.18% and 12.91% for 2015, including the $879 thousand life insurance benefit. Operating results were driven by an increase in loan
sales and servicing revenue from agricultural loans and residential mortgages, up $362 thousand or 150% compared to 2015. Continued strengthening of loan quality allowed for reduced loan
loss provision expense by $115 thousand, down 15% compared to 2015. In addition, a 14% growth in loan balances and 17% growth in demand deposit balances helped drive a $2.3 million, or
9.1%, increase in net interest income. A decline in net interest margin to 3.94% for 2016, compared to 4.02% in 2015, was driven by higher levels of long-term borrowing to position the bank
for future increases in market interest rates, and augment deposit growth to fund strong loan growth. Finally, Heartland’s efficiency ratio of 62.78% for 2016 reflects the company’s investment
in talent acquisition and branch expansion to support continued, consistent growth and financial performance. Heartland BancCorp’s financial performance in 2016 reflects the strength and
commitment of our board of directors, and quality of the Heartland team.

Overview of Operations:

Net interest income, before provision for loan
loss, for 2016 was $27.8 million, up 9% or $2.3
million compared to 2015. Interest income of
$31.9 million for 2016 increased $3.1 million
or 11%, and interest expense on deposits
and borrowings increased $791 thousand
or 24% compared to 2015. The expectation
of a stable economy, improved loan quality,
and strong loan growth, led management
to record a provision for loan loss of $645
thousand in 2016. With net loan charge-offs
of $662 thousand, this resulted in a slight
decrease of $17 thousand to the allowance
for loan loss, which ended the year at $5.7
million. The allowance as a percent of loans
outstanding was .91% at the end of 2016
representing a decline from 1.05% at the end
of 2015. Net interest income, after provision
for loan loss, totaled $27.1 million, up $2.4
million or 10% in 2016 compared to 2015.

Non-Interest income of $3.6 million for 2016
decreased $390 thousand or 10% compared
to 2015. 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 2016 increased by $489

thousand, or 15% compared to 2015, due
to higher gains and commissions on sales
and servicing revenue of agriculture and
residential mortgage loans, which increased
by $362 thousand, or 150%. Additionally,
gains on sales of available-for-sale securities
totaled $198 thousand in 2016, an increase of
$179 thousand compared to 2015.

Non-Interest expense was $19.5 million
for 2016, up $2.0 million or 11% over
2015. Total salary and employee benefit
expense increased $1.1 million or 11% in
2016. The higher employee cost was due to
Heartland’s investment in the future, with
increased staff for the new Hilliard branch,
and strategic expansion of the management
team to position the company for future
growth, along with higher employee and
incentive costs supporting the strong 2016
growth. As a result of Heartland’s investment
in technology and branch expansion,
occupancy expense, totaling $2.1 million in
2016, increased $283 thousand or 15%.

Financial Condition:

Total assets increased $51.8 million, or 7%,
to $781.3 million at December 31, 2016,
compared to $729.5 million in 2015. Net

loans outstanding increased to $617.9
million, up $76.9 million or 14% compared
to net loans of $541.0 million at the end of
2015. Total commercial loans (excluding
agriculture) increased $35 million, up 9%, at
December 31, 2016, of which commercial
(non-real estate) loans grew 9% to $55.4
million, and commercial real estate loans
increased 9% to $383.4 million. As a result
of the focus on agricultural lending, net
agricultural loan balances grew to $25.5
million at December 31, 2016. Retail loans
outstanding totaled $159.7 million, an
increase of 23% over 2015, with residential
real estate loans up 20% to $113.6 million.
Overall asset quality continued to improve
during 2016, with non-performing assets
declining to .59% of total assets, down 13
basis points from .72% as of December 31,
2015.

Heartland BancCorp funds earning asset
growth through its deposit relationships.
Total deposits at December 31, 2016, were
$664.7 million, up 7% from $623.0 million
at December 31, 2015. A key element of
Heartland’s deposit strategy continues to
focus on growing commercial and retail
transaction accounts. This strategy is

evidenced by the $23.5 million, or 17%,
growth in non-interest bearing demand
deposit accounts during 2016.

Shareholders’ Equity:

Total shareholders’ equity remained strong,
growing 7% to $71.4 million in 2016. Based
upon shares outstanding, the book value
of shareholders’ equity increased 6% from
$42.61 per share at year-end 2015 to $45.10
per share at December 31, 2016. Among the
financial strengths of Heartland BancCorp is
its capital position, which exceeds regulatory
guidelines and compares favorably to our
peers and other Ohio based banks. Tier 1
leverage, Common equity Tier 1, Tier 1 risk-
based and Total risk-based capital ratios were
9.1%, 11.4%, 11.3%, and 13.2% respectively
as of December 31, 2016. Regulatory
requirements for a “well-capitalized bank”
are 5%, 6.5%, 8%, and 10% respectively for
these measurements. In 2016, Heartland
BancCorp paid a dividend of $1.55 per
share, representing a yield of 2.85% on the
weighted average market price of $54.15 per
share for 2016. Dividends paid resulted in a
payout ratio of 30.02% for 2016. Market value
of Heartland BancCorp shares increased 42%
to $64.01 per share at December 31, 2016.

Assets

Cash and cash equivalents
Available-for-sale securities
Held-to-maturity securities, fair value of $5,771,601
and $6,407,215 at December 31, 2016 and 2015,
respectively

Loans, net of allowance for loan losses of $5,698,631
and $5,715,827at December 31, 2016 and 2015,
respectively

Premises and equipment

Nonmarketable equity securities
Foreclosed assets held for sale
Interest receivable

Goodwill
Deferred income taxes
Life insurance assets

Other

Total assets

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

Total liabilities

Shareholders’ Equity

Common stock, without par value; authorized
5,000,000 shares; issued 2016 - 1,583,228 shares,
2015 - 1,564,581 shares
Retained earnings

Accumulated other comprehensive income (loss)

Total shareholders’ equity
Total liabilities and shareholders’ equity

Book value per share

2016

21,360,328
103,040,574

2015

$ 36,994,171
114,492,664

5,570,879

6,044,094

617,861,089
14,055,450
2,825,439
400,000
2,240,709
417,353
2,557,509
9,531,991
1,441,033
$ 781,302,354

$ 162,690,185
223,817,354
278,166,617
664,674,156
24,456,241
15,460,000
5,311,789
709,902,186

24,595,195
47,545,465
(740,492)
71,400,168
$ 781,302,354
45.10
$

540,958,372
13,506,350
2,658,239
-
1,958,082
417,353
1,722,934
9,327,518
1,416,804
$ 729,496,581

$ 139,226,242
219,076,813
264,651,203
622,954,258
29,150,118
5,460,000
5,270,849
662,835,225

23,872,599
41,991,488
797,269
66,661,356
$ 729,496,581
42.61
$

Interest Income

Loans
Securities
Taxable
Tax-exempt

Other
Total interest income

Interest Expense

Deposits

Borrowings

Total interest expense

Net Interest Income
Provision for Loan Losses
Net Interest Income After Provision for Loan Losses

Noninterest Income
Service charges

Net gains and commissions on loan sales and servicing
Net realized gain on sales of available-for-sale securities
Net realized gain on sales of foreclosed assets
Gain on redemption of life insurance proceeds

Increase in cash value of life insurance

Other

Total noninterest income

Noninterest Expense

Salaries and employee benefits

Net occupancy and equipment expense
Data processing fees
Professional fees
Marketing expense

Printing and office supplies
State financial institution tax
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

2016

2015

28,478,204

$ 25,775,945

1,604,436
1,635,314
137,738
31,855,692

3,702,300
394,985
4,097,285
27,758,407
645,000
27,113,407

1,944,229
603,849
197,711
-
-
272,863
541,140
3,559,792

11,413,273
2,125,591
1,120,524
681,553
563,381
255,321
531,002
368,000
2,479,506
19,538,151

11,135,048
3,146,789
7,988,259
5.08
4.97

$
$
$

1,376,312
1,551,627
50,925
28,754,809

3,256,624
49,252
3,305,876
25,448,933
760,000
24,688,933

1,925,467
241,742
18,291
5,308
879,488
243,322
636,623
3,950,240

10,331,707
1,842,702
1,082,143
498,406
545,990
158,877
423,926
411,000
2,261,155
17,555,906

11,083,267
2,955,567
8,127,700
5.21
5.13

$
$
$

p. 4 I Performance & Excellence

Heartland BancCorp
ANNUAL REPORT 2016

CONSOLIDATED BALANCE SHEETS
December 31, 2016 and 2015

CONSOLIDATED STATEMENTS OF INCOME
December 31, 2016 and 2015

Heartland BancCorp

2016 marked another year of consistent achievement of strong financial performance for Heartland BancCorp, as 2016 financial results represent the second most profitable year in

its 28 year history. Net income for 2016 increased 11% to $8.0 million or $4.97 per diluted share, compared to core earnings of $7.2 million, or $4.57 per diluted share in 2015,

Overview of Operations:

Financial Condition:

Total assets increased $51.8 million, or 7%,
to $781.3 million at December 31, 2016,
compared to $729.5 million in 2015. Net

evidenced by the $23.5 million, or 17%,
growth in non-interest bearing demand
deposit accounts during 2016.

Shareholders’ Equity:

Assets

Cash and cash equivalents
Available-for-sale securities
Held-to-maturity securities, fair value of $5,771,601
and $6,407,215 at December 31, 2016 and 2015,
respectively

Loans, net of allowance for loan losses of $5,698,631
and $5,715,827at December 31, 2016 and 2015,
respectively

Premises and equipment

Nonmarketable equity securities
Foreclosed assets held for sale
Interest receivable

Goodwill
Deferred income taxes
Life insurance assets

Other

Total assets

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

Total liabilities

Shareholders’ Equity

Common stock, without par value; authorized
5,000,000 shares; issued 2016 - 1,583,228 shares,
2015 - 1,564,581 shares
Retained earnings

Accumulated other comprehensive income (loss)

Total shareholders’ equity
Total liabilities and shareholders’ equity

Book value per share

2016

21,360,328
103,040,574

2015

$ 36,994,171
114,492,664

5,570,879

6,044,094

617,861,089
14,055,450
2,825,439
400,000
2,240,709
417,353
2,557,509
9,531,991
1,441,033
$ 781,302,354

$ 162,690,185
223,817,354
278,166,617
664,674,156
24,456,241
15,460,000
5,311,789
709,902,186

24,595,195
47,545,465
(740,492)
71,400,168
$ 781,302,354
45.10
$

540,958,372
13,506,350
2,658,239
-
1,958,082
417,353
1,722,934
9,327,518
1,416,804
$ 729,496,581

$ 139,226,242
219,076,813
264,651,203
622,954,258
29,150,118
5,460,000
5,270,849
662,835,225

23,872,599
41,991,488
797,269
66,661,356
$ 729,496,581
42.61
$

Interest Income

Loans
Securities
Taxable
Tax-exempt

Other
Total interest income

Interest Expense

Deposits

Borrowings

Total interest expense

Net Interest Income
Provision for Loan Losses
Net Interest Income After Provision for Loan Losses

Noninterest Income
Service charges

Increase in cash value of life insurance

Other

Total noninterest income

Noninterest Expense

Salaries and employee benefits

Net occupancy and equipment expense
Data processing fees
Professional fees
Marketing expense

Printing and office supplies
State financial institution tax
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

2016

2015

28,478,204

$ 25,775,945

1,604,436
1,635,314
137,738
31,855,692

3,702,300
394,985
4,097,285
27,758,407
645,000
27,113,407

1,944,229
603,849
197,711
-
-
272,863
541,140
3,559,792

11,413,273
2,125,591
1,120,524
681,553
563,381
255,321
531,002
368,000
2,479,506
19,538,151

11,135,048
3,146,789
7,988,259
5.08
4.97

$
$
$

1,376,312
1,551,627
50,925
28,754,809

3,256,624
49,252
3,305,876
25,448,933
760,000
24,688,933

1,925,467
241,742
18,291
5,308
879,488
243,322
636,623
3,950,240

10,331,707
1,842,702
1,082,143
498,406
545,990
158,877
423,926
411,000
2,261,155
17,555,906

11,083,267
2,955,567
8,127,700
5.21
5.13

$
$
$

p. 6 I Keeping Our Community Smiling

Heartland BancCorp
ANNUAL REPORT 2016

Tracy Beckman
Beckman XMO

When Tracy thinks about his company’s success, he also thinks of Heartland Bank. “They’ve certainly
been essential to our growth and at times, we rely on their good solid advice about moving our company
forward. For more than 10 years, I’ve always felt we could count on Heartland Bank and the relationships
we share with those who work there. They always have our best interest in mind, which is very important
to me and my family.”

Justin Butcher
Butcher Family Farm

“My experience working with Brian Fracker and the Heartland Bank team was awesome,” said Justin
Butcher of Butcher Family Farms in Knox County. “My family has been working this land for five
generations (my son Karson makes six) and more than anything, I’m so proud that Brian helped us
bring livestock back to our family farm. It was a smooth and hassle free experience and I would highly
recommend him (and Heartland Bank) to anyone looking to expand their farm operations.”

Dr. Anne Duffus, DVM
Whitehall Animal Hospital

Dr. Duffus said, “When I call the bank, I appreciate that a real person answers the phone, not a computer.
One evening, I tried to make a deposit at my local branch, and due to a power outage, couldn’t get access
to the Night Deposit box. One of the bank managers met me at the branch at 8:00 p.m. that night to help
me. It was unbelievable.”

Steve Burkhart
Burkhart Farms

“Joel Oney and his team were wonderful to work with. We were actually referred to Heartland by
Case Farms and a neighboring farmer who previously worked with the bank,” said Steve Burkhart,
owner of Burkhart Farms in Norwich, Ohio.

Matthew Barbee
Rockmill Brewery and
Rockmill Tavern

Matthew needed a strong
financial partner and he turned to
Heartland Bank. “Heartland went
above and beyond and helped us
take over the mortgages on the
farm house and made sure we
had everything we needed. They
came at a strategic time for us,”
he said.

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, SVP, Compliance Officer and Corporate Secretary
(614) 337-4600

• Your Financial Advisor

• Heartland Investment Services (614) 839-2265

HLAN

Heartland BancCorp is currently
quoted on the over-the-counter
(OTC) Bulletin Board Service under
the symbol HLAN.

Heartland BancCorp
ir.HeartlandBank.com

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.

Heartland BancCorp
Total Return Performance

Heartland BancCorp
SNL Bank Pink >$500 M
SNL Midwest Bank

e
u
a
V
x
e
d
n

350

300

250

200

150

100

12/2012

12/2013

12/2014

12/2015

12/2016

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).

p. 6 I Keeping Our Community Smiling

Heartland BancCorp
ANNUAL REPORT 2016

Tracy Beckman
Beckman XMO

Justin Butcher
Butcher Family Farm

Dr. Anne Duffus, DVM
Whitehall Animal Hospital

Steve Burkhart
Burkhart Farms

Matthew Barbee
Rockmill Brewery and
Rockmill Tavern

Taking Stock in Your
Community

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, SVP, Compliance Officer and Corporate Secretary
(614) 337-4600

• Your Financial Advisor

• Heartland Investment Services (614) 839-2265

HLAN

Heartland BancCorp is currently
quoted on the over-the-counter
(OTC) Bulletin Board Service under
the symbol HLAN.

Heartland BancCorp
ir.HeartlandBank.com

Heartland BancCorp
Total Return Performance

Heartland BancCorp
SNL Bank Pink >$500 M
SNL Midwest Bank

e
u
a
V
x
e
d
n

350

300

250

200

150

100

12/2012

12/2013

12/2014

12/2015

12/2016

p. 8 I Caring for Our Communities

Heartland BancCorp
ANNUAL REPORT 2016

A Tradition of
Giving

Employee
Initiatives

2016
at a Glance

American Heart Association

My Brother’s Keeper

104.9 The River’s Mission Backpack

Product/Services Launch:

Archie Griffin Scholarship Fund

Ohio 4-H Celebration of Youth

Big Brother Big Sisters of Central Ohio

Ohio Farm Bureau

Big Brothers Big Sisters of Licking and
Perry County

PCMA Food Pantry of Pickerington

Pelotonia

CD102.5 For The Kids

Church of the Resurrection

Columbus College of Art and Design

Crew Youth Soccer Foundation

Croton Food Pantry

Dublin Food Pantry

Earl Bruce Foundation

Fellowship of Christian Athletes Central
Ohio

Gahanna Residents in Need (G.R.I.N.)

Gahanna Soccer Association

Grove City Food Pantry Emergency
Services, Inc.

Grow Licking County

Highland Youth Garden

Hilliard Food Pantry

Johnstown Food Pantry

Life Town Lessons for Life

March of Dimes - March for Babies

Masonic Learning Centers for Children
with Dyslexia

Mission Backpack

Pickerington Area Soccer Association

Reynoldsburg Helping Hands Food Pantry

Ronald McDonald House

Second Chance Humane Society

St. Matthews Catholic Church

The First Tee of Central Ohio

The Open Shelter

United Negro College Fund

United Way of Central Ohio

USO of Central and Southern Ohio

Victory Ministries for Children’s Outreach
Program

Westerville Area Resource Ministry
(W.A.R.M.)

Whitehall Parks and Recreation

Wyatt Adkins Heart Organization

YES Program-Mental Health America of
Licking County

19th Annual Heartland Bank Charity Golf
Classic

Johnstown Monroe’s Searfoss Elementary
School 4th Grade Financial Literacy

9th 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

Feel Good Music Series at Notes

Gahanna Creekside Blues & Jazz Festival

As a commitment to our client’s security,
improvements were made to the credit
card program at Heartland Bank. With the
transition to EMV chip card technology,
we also incorporated a modern, new
design, converted from MasterCard
to Visa, secured an updated rewards
program and now provide real time
card activity via the secure portal on
HeartlandBank.com.

With the opening of the Hilliard branch,
we successfully introduced the Universal
Banker Branch Staffing Model. Not only
are Universal Bankers trained to handle
everything from opening accounts to
booking loans, they also enjoy a more
personal partnership with their clients by
sharing their workspace, computer screen
and up to the minute financial data both
securely and privately.

Grove City Arts in the Alley

Would you like to fly?

Hartford Fair

Hilltop Bean Dinner

Bluegrass on Main Street, Newark

Pickerington Economic Outlook

Reynoldsburg Tomato Festival

Summer Jam at Westgate Park

Westerville Music and Arts Festival

Whitehall Food Truck Festival

The Heartland Bank hot air balloon
supports the bank’s marketing public
relations and special event efforts while
complimenting brand-building and
awareness strategies. Our employee-
based balloon crew assisted the pilot
with several flights and tethers in 2016
including the Dublin Irish Festival,
Reynoldsburg Tomato Festival, Farm
Science Review, Little Brown Jug,
Memorial Tournament, Pickerington Violet
Festival, high school football games and
WTVN’s Clintonville Car Show, just to
name a few. Up, up and away…..

Up, Up and Away with the
Heartland Bank balloon

Johnstown manager Tanya Bennett
with students at Searfoss Elementary

Celebrating our 13th branch
opening in Hilliard, June 2016

Associates at City of Whitehall’s
Rebuilding a Healthy Neighborhood

Accepting the Grove City ‘Heartland
Bank Heart of the Chamber Award’

The new digital billboard at the
Capitol Square office

Associates enjoy the annual
Hartford Fair

Quarterly ‘Circle of Champions’
associate recognition breakfast

OSDC Annual Award recipient -
Crimson Cup’s ‘2016 Project of the Year’

Proud to sponsor the Archie Griffin
Scholarship Fund Golf Outing

p. 8 I Caring for Our Communities

Heartland BancCorp
ANNUAL REPORT 2016

A Tradition of
Giving

Employee
Initiatives

2016
at a Glance

American Heart Association

My Brother’s Keeper

104.9 The River’s Mission Backpack

Product/Services Launch:

Archie Griffin Scholarship Fund

Ohio 4-H Celebration of Youth

Big Brother Big Sisters of Central Ohio

Ohio Farm Bureau

Big Brothers Big Sisters of Licking and
Perry County

PCMA Food Pantry of Pickerington

Pelotonia

CD102.5 For The Kids

Church of the Resurrection

Columbus College of Art and Design

Crew Youth Soccer Foundation

Croton Food Pantry

Dublin Food Pantry

Earl Bruce Foundation

Fellowship of Christian Athletes Central
Ohio

Gahanna Residents in Need (G.R.I.N.)

Gahanna Soccer Association

Grove City Food Pantry Emergency
Services, Inc.

Grow Licking County

Highland Youth Garden

Hilliard Food Pantry

Johnstown Food Pantry

Life Town Lessons for Life

March of Dimes - March for Babies

Masonic Learning Centers for Children
with Dyslexia

Mission Backpack

Pickerington Area Soccer Association

Reynoldsburg Helping Hands Food Pantry

Ronald McDonald House

Second Chance Humane Society

St. Matthews Catholic Church

The First Tee of Central Ohio

The Open Shelter

United Negro College Fund

United Way of Central Ohio

USO of Central and Southern Ohio

Victory Ministries for Children’s Outreach
Program

Westerville Area Resource Ministry
(W.A.R.M.)

Whitehall Parks and Recreation

Wyatt Adkins Heart Organization

YES Program-Mental Health America of
Licking County

19th Annual Heartland Bank Charity Golf
Classic

Johnstown Monroe’s Searfoss Elementary
School 4th Grade Financial Literacy

9th 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

Feel Good Music Series at Notes

Gahanna Creekside Blues & Jazz Festival

Grove City Arts in the Alley

Would you like to fly?

Hartford Fair

Hilltop Bean Dinner

Bluegrass on Main Street, Newark

Pickerington Economic Outlook

Reynoldsburg Tomato Festival

Summer Jam at Westgate Park

Westerville Music and Arts Festival

Whitehall Food Truck Festival

Up, Up and Away with the
Heartland Bank balloon

Johnstown manager Tanya Bennett
with students at Searfoss Elementary

Celebrating our 13th branch
opening in Hilliard, June 2016

Associates at City of Whitehall’s
Rebuilding a Healthy Neighborhood

Accepting the Grove City ‘Heartland
Bank Heart of the Chamber Award’

The new digital billboard at the
Capitol Square office

Associates enjoy the annual
Hartford Fair

Quarterly ‘Circle of Champions’
associate recognition breakfast

OSDC Annual Award recipient -
Crimson Cup’s ‘2016 Project of the Year’

Proud to sponsor the Archie Griffin
Scholarship Fund Golf Outing

p. 10 I Leadership & Teamwork

Heartland BancCorp
ANNUAL REPORT 2016

G. Scott McComb
Chariman, President and
CEO

Carrie L. Almendinger
EVP, Chief Financial Officer

Steven C. Hines
EVP, Chief Administration
Officer

Brian T. Mauntel
EVP, Chief Operating Officer

Our Senior
Management Team
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.

Benjamin J. Babcanec
SVP, Head of Retail
Administration

David P. Curby
SVP, Mortgage Lending

Jennifer L. Eckert
SVP, Compliance & Risk
Management Officer,
Corporate Secretary

Ashley A. Trout
SVP, Director of Distribution
Strategies

Heartland BancCorp Directors

William A. Dodson, Jr.
EVP/Community Relations
Director, Rhema Christian Center

Jodi L. Garrison
CPA, Partner
Hirth, Norris & Garrsion, LLP

G. Scott McComb
Chairman, President and CEO
Heartland Bank

William J. Schottenstein
Principal
Arshot Investment Corporation

Beverly J. Donaldson
President
Inns Management Group

Jay B. Eggspuehler, Esq.
Isaac Wiles

David C. Kotary
Senior Vice President
Marsh & McLennan Agency, LLC

Robert C. Overs
Retired, EVP & COO
Technical Rubber Company, Inc.

George R. Smith
Retired, EVP & CFO
Heartland Bank

Cheryl Krueger
CEO
Life Support

Gary D. Paine
Owner
Pilot Freight Services

Richard A. Vincent
President & CEO
Osteopathic Heritage Foundation
and Osteopathic Heritage
Foundation of Nelsonville

Heartland BancCorp Directors Emeritus

Heartland BancCorp Officers

I. Robert Amerine
American Apex Corporation

Gerald K. McClain
The Jerry McClain Company, Inc.

Arthur G.H. Bing M.D.
Plastic & Reconstructive Surgeon

G. Scott McComb
Chairman, President and CEO

Jodi L. Garrison
Secretary

Joseph A. Duffey
VP, Director of
Credit Administration

Jessica McNamee
VP, Director of Finanicial
Planning

Alissa R. Schierberl
AVP, Director of
Human Resources

Gretchen A. Hof
AO, Director of Marketing

Jack J. Eggspuehler
Aerosafe, Inc.

Tiney M. McComb
Heartland BancCorp

John R. Haines
John R. Haines Insurance Agency

Cheryl C. Poulton
Tech International

Jay B. Eggspuehler, Esq.
Vice Chairman

Carrie L. Almendinger
Treasurer

p. 10 I Leadership & Teamwork

Heartland BancCorp
ANNUAL REPORT 2016

G. Scott McComb
Chariman, President and
CEO

Carrie L. Almendinger
EVP, Chief Financial Officer

Steven C. Hines
EVP, Chief Administration
Officer

Brian T. Mauntel
EVP, Chief Operating Officer

Benjamin J. Babcanec
SVP, Head of Retail
Administration

David P. Curby
SVP, Mortgage Lending

Jennifer L. Eckert
SVP, Compliance & Risk
Management Officer,
Corporate Secretary

Ashley A. Trout
SVP, Director of Distribution
Strategies

Heartland BancCorp Directors

William A. Dodson, Jr.
EVP/Community Relations
Director, Rhema Christian Center

Jodi L. Garrison
CPA, Partner
Hirth, Norris & Garrsion, LLP

G. Scott McComb
Chairman, President and CEO
Heartland Bank

William J. Schottenstein
Principal
Arshot Investment Corporation

Beverly J. Donaldson
President
Inns Management Group

Jay B. Eggspuehler, Esq.
Isaac Wiles

David C. Kotary
Senior Vice President
Marsh & McLennan Agency, LLC

Robert C. Overs
Retired, EVP & COO
Technical Rubber Company, Inc.

George R. Smith
Retired, EVP & CFO
Heartland Bank

Cheryl Krueger
CEO
Life Support

Gary D. Paine
Owner
Pilot Freight Services

Richard A. Vincent
President & CEO
Osteopathic Heritage Foundation
and Osteopathic Heritage
Foundation of Nelsonville

Heartland BancCorp Directors Emeritus

Heartland BancCorp Officers

I. Robert Amerine
American Apex Corporation

Gerald K. McClain
The Jerry McClain Company, Inc.

Arthur G.H. Bing M.D.
Plastic & Reconstructive Surgeon

G. Scott McComb
Chairman, President and CEO

Jodi L. Garrison
Secretary

Joseph A. Duffey
VP, Director of
Credit Administration

Jessica McNamee
VP, Director of Finanicial
Planning

Alissa R. Schierberl
AVP, Director of
Human Resources

Gretchen A. Hof
AO, Director of Marketing

Jack J. Eggspuehler
Aerosafe, Inc.

Tiney M. McComb
Heartland BancCorp

John R. Haines
John R. Haines Insurance Agency

Cheryl C. Poulton
Tech International

Jay B. Eggspuehler, Esq.
Vice Chairman

Carrie L. Almendinger
Treasurer

p. 12 I Looking to the Future

Heartland BancCorp
ANNUAL REPORT 2016

Coming Soon to
Clintonville

4476 North High Street
Columbus, OH

New Corporate Center and
Whitehall Branch Location

430 North Hamilton Road
Whitehall, OH

Just Announced:
Upper Arlington

1800 West Lane Avenue
Upper Arlington, OH

INTERSTATE

270

INTERSTATE

CENTRAL OHIO FOOTPRINT

1. Croton

740-893-2191

12. Hilliard

2. Johnstown

740-967-6500

13. Dublin

614-710-1640

614-798-8818

3. Westerville

614-839-2265

14. Clintonville

Coming Soon!

4. Newark

5. Gahanna

740-349-7888

15. Whitehall

Coming Soon!

614-337-4605

16. Upper Arlington

Coming Soon!

6. Stygler Road

614-475-7024

7. Reynoldsburg

614-416-0400

8. Pickerington

614-321-4919

9. Capitol Square

614-416-0244

10. Grove City

614-875-1884

17. Friendship Village of Dublin

614-923-0575

18. Worthington Christian Village

614-846-6076

19. Friendship Village of Columbus

11. Wilson Road

614-351-2100

614-394-8686

General Info

Mission Statement

Heartland’s Shared Values

Heartland BancCorp is a registered Ohio
bank holding company and the parent of
Heartland Bank, which operates thirteen
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. Heartland
BancCorp is currently quoted on the
OTC markets (OTCQB) under the symbol
HLAN.

850 North Hamilton Road
Gahanna, OH 43230

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.

• 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 profitably.

• We value loyalty, honesty and integrity

in our relationships.

• We are committed to the enrichment
of our local communities through our
involvement.

Member FDIC NMLS# 440231 Equal Housing Lender

HeartlandBank.com
1 (800) 697-0049