FORM 10-QSB
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: March 31, 1999
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transaction period from to .
Commission file number: 333-32245
Heartland Bancshares, Inc.
(Exact name of small business issuer as specified in its charter)
Indiana 35-2017085
(State or other jurisdiction of (I.R.S. Employer Identification Number)
incorporation or organization)
420 North Morton Street, P.O. Box 469, Franklin, Indiana 46131
(Address of principal executive offices)
(317)738-3915
(Registrant's telephone number)
Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act during the past 12 months (or
for such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.
Yes X No
Indicate the number of shares outstanding of each of the registrant's classes of
common stock, as of the latest practicable date.
As of May 11, 1999, the latest practicable date, 1,265,000 shares of the
Registrant's Common Stock, no par value, were issued and outstanding.
Transitional Small Business Disclosure Format Yes No X
<PAGE>
HEARTLAND BANCSHARES, INC.
CONSOLIDATED BALANCE SHEETS
March 31, 1999 and December 31, 1998
(Amounts in thousands, except share data)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
March 31, December 31,
1999 1998
---- ----
<S> <C> <C>
ASSETS
Cash and due from banks $ 413 $ 403
Interest bearing deposits in other banks 950 1,560
Federal funds sold 350 1,200
------- -------
Total cash and cash equivalents 1,713 3,163
Securities available-for-sale, at market 11,663 10,457
Loans 61,089 49,442
Allowance for loan losses (916) (742)
------- -------
Loans, net 60,173 48,700
Premises, furniture and equipment, net 1,699 1,707
Accrued interest receivable and other assets 680 633
------- -------
$75,928 $64,660
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Noninterest-bearing deposits $ 4,885 $ 4,341
Interest-bearing demand and savings deposits 16,202 13,397
Interest-bearing time deposits 42,973 35,016
Total deposits 64,060 52,754
Short-term borrowings 524 740
Accrued interest payable and other liabilities 383 250
64,967 53,744
Shareholders' equity
Common stock, no par value: 10,000,000 shares
authorized; 1,265,000 shares issued and
outstanding 1,265 1,265
Additional paid-in capital 10,466 10,466
Accumulated deficit (741) (868)
Accumulated other comprehensive income (29) 53
------- -------
10,961 10,916
------- -------
$75,928 $64,660
======= =======
</TABLE>
<PAGE>
HEARTLAND BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME
Three Months ended March 31, 1999 and 1998
(Dollar amounts in thousands, except per share data)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998
---- ----
<S> <C> <C>
Interest income
Loans, including fees $ 1,265 $ 227
Securities:
Taxable 166 113
Non-taxable 6 -
Other 15 13
------- ------
1,452 353
Interest expense
Deposits 665 81
Short-term borrowings 6 2
------- ------
671 83
Net interest income 781 270
Provision for loan losses 176 143
------- ------
Net interest income after provision for loan losses 605 127
Noninterest income
Service charges and fees 27 4
Noninterest expense
Salaries and employee benefits 298 235
Occupancy and equipment expenses, net 49 36
Data processing expense 62 29
Printing and Supplies 13 25
Advertising 17 22
Director fees 7 7
Credit reports and other loan expenses 14 11
Professional fees 12 22
Other operating expenses 33 27
------- ------
505 414
Income/(Loss) before income taxes 127 (283)
Income taxes - -
------- ------
Net income/(loss) $ 127 $ (283)
======= ======
Basic and diluted earnings per share $ .10 $ (.22)
======= ======
</TABLE>
<PAGE>
HEARTLAND BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
Three Months ended March 31, 1999 and 1998
(Dollar amounts in thousands, except share through data)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Accumulated
Other Total
Additional Accum- Compre- Share-
Common Paid-in ulated hensive holders'
Stock Capital Deficit Income Equity
------ ------- ------- ------- --------
<S> <C> <C> <C> <C> <C>
Balance December 31, 1997 $1,265 $10,466 $ (240) $ 13 $ 11,504
Comprehensive income/(loss)
Net loss for three months
Ended March 31, 1998 (283) (283)
Change in unrealized
gain on securities
available-for-sale 26 26
--------
Total comprehensive loss (257)
----- ------- ------ ------- --------
Balance March 31, 1998 1,265 10,466 (523) 39 11,247
Comprehensive income/(loss)
Net loss for nine months
ended December 31, 1998 (345) (345)
Change in unrealized
gain on securities
available-for-sale 14 14
--------
Total comprehensive loss (331)
------ ------ ------ ------- --------
Balance December 31, 1998 1,265 10,466 (868) 53 10,916
Comprehensive income/(loss)
Net income for three months
ended March 31, 1999 127 127
Change in unrealized
gain on securities
available-for-sale (82) (82)
--------
Total comprehensive income 45
------ ------ ------ ------- --------
Balance March 31, 1999 $ 1,265 $10,466 $ (741) $ (29) $ 10,961
====== ====== ====== ======= ========
</TABLE>
<PAGE>
HEARTLAND BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months ended March 31, 1999 and 1998
(Dollar amounts in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998
---- ----
<S> <C> <C>
Cash flows from operating activities
Net income/(loss) $ 127 $ (283)
Adjustments to reconcile net loss to net cash
from operating activities
Depreciation and amortization 30 12
Provision for loan losses 176 143
Change in assets and liabilities:
Accrued interest receivable and other assets (47) (105)
Accrued interest payable and other liabilities 133 (17)
Net cash from operating activities 419 (250)
Cash flows from investing activities
Purchase of securities available-for-sale (1,933) (541)
Proceeds from calls and maturities of securities
available-for-sale 646 1,000
Loans made to customers, net of payments collected (11,649) (8,625)
Net purchases of property and equipment (23) (322)
-------- --------
Net cash from investing activities (12,959) (8,488)
Cash flows from financing activities
Net change in deposit accounts 11,306 11,300
Net change in short-term borrowings (216) (800)
-------- --------
Net cash from financing activities 11,090 10,500
-------- --------
Net change in cash and cash equivalents (1,450) 1,762
Cash and cash equivalents at beginning of period 3,163 1,140
-------- --------
Cash and cash equivalents at end of period $ 1,713 $ 2,902
======== ========
Supplemental disclosures of cash flow information Cash paid during the period
for:
Interest $ 606 $ 1,079
Income taxes - -
</TABLE>
<PAGE>
HEARTLAND BANCSHARES, INC.
FORM 10-QSB
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1999
- --------------------------------------------------------------------------------
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Description of Business: The consolidated financial statements include the
accounts of Heartland Bancshares, Inc. (Heartland) and its wholly-owned
subsidiary, Heartland Community Bank (Bank), after elimination of significant
inter-company transactions and accounts. The Bank commenced operation December
17, 1997.
Heartland operates primarily in the banking industry, which accounts for more
than 90% of its revenues, operating income and assets. The Bank is engaged in
the business of commercial and retail banking, with operations conducted through
its main office located in Franklin, Indiana. The Bank opened an additional
branch location in Greenwood, Indiana in January 1998. The majority of the
Bank's income is derived from commercial and retail business lending activities
and investments. The majority of the Bank's loans are secured by specific items
of collateral including business assets, real property and consumer assets.
Use of Estimates: To prepare financial statements in conformity with generally
accepted accounting principles, management makes estimates and assumptions based
on available information. These estimates and assumptions affect the amounts
reported in the financial statements and the disclosures provided, and future
results could differ. The allowance for loan losses, the fair values of
financial instruments, and status of contingencies are particularly subject to
change.
Securities: Securities are classified as held to maturity and carried at
amortized cost when management has the positive intent and ability to hold them
to maturity. Securities are classified as available for sale when they might be
sold before maturity. Securities available for sale are carried at fair value,
with unrealized holding gains and losses reported separately in shareholders'
equity, net of tax. Securities are written down to fair value when a decline in
fair value is not temporary. Interest and dividend income, adjusted by
amortization of purchase premium or discount, is included in earnings. The Bank
had no held to maturity securities at March 31, 1999 or December 31, 1998.
Loans: Loans are reported at the principal balance outstanding, net of unearned
interest, deferred loan fees and costs, and an allowance for loan losses.
Interest income is reported on the interest method and includes amortization of
net deferred loan fees and costs over the loan term.
Interest income is not reported when full loan repayment is in doubt, typically
when payments are past due over 90 days (180 days for residential mortgages).
Payments received on such loans are reported as principal reductions.
<PAGE>
HEARTLAND BANCSHARES, INC.
FORM 10-QSB
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1999
- --------------------------------------------------------------------------------
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Allowance for Loan Losses: The allowance for loan losses is a valuation
allowance, increased by the provision for loan losses and decreased by
charge-offs less recoveries. Management estimates the allowance balance required
based on known and inherent risks in the portfolio, information about specific
borrower situations and estimated collateral values, economic conditions, and
other factors. Allocations of the allowance may be made for specific loans, but
the entire allowance is available for any loan that, in management's judgment,
should be charged-off.
Loan impairment is reported when full payment under the loan terms is not
expected. Impairment is evaluated in total for smaller-balance loans of similar
nature such as residential mortgage, consumer and credit card loans, and on an
individual loan basis for other loans. If a loan is impaired, a portion of the
allowance is allocated so that the loan is reported, net, at the present value
of estimated future cash flows using the loan's existing rate or at the fair
value of collateral if repayment is expected solely from the collateral. Loans
are evaluated for impairment when payments are delayed, typically 90 days or
more, or when it is probable that all principal and interest amounts will not be
collected according to the original terms of the loan.
Premises, Furniture and Equipment: Premises, furniture and equipment are stated
at cost less accumulated depreciation. Depreciation expense is recognized over
the estimated useful lives of the assets, principally on the straight-line
method. These assets are reviewed for impairment when events indicate the
carrying amount may not be recoverable. Maintenance and repairs are expensed and
major improvements are capitalized.
Intangibles: A new accounting standard effective on January 1, 1999, requires
all previously capitalized organizational costs to be written off as of that
date. Early adoption was allowed, so Heartland completely amortized
organizational costs during 1998. The incremental amount written-off in 1998 by
early adoption of this accounting standard was not significant to the results of
operations.
Stock Compensation: Expense for employee compensation under stock option plans
is based on Accounting Principles Board Opinion 25, with expense reported only
if options are granted below market price at grant date. Pro forma disclosures
of net income and earnings per share are provided as if the fair value method of
Financial Accounting Standard No. 123 were used for stock based compensation.
<PAGE>
HEARTLAND BANCSHARES, INC.
FORM 10-QSB
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1999
- --------------------------------------------------------------------------------
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Income Taxes: Income tax expense is the sum of the current year income tax due
or refundable and the change in deferred tax assets and liabilities. Deferred
tax assets and liabilities are the expected future tax consequences of temporary
differences between the carrying amounts and tax bases of assets and
liabilities, computed using enacted tax rates. A valuation allowance, if needed,
reduces deferred tax assets to the amount expected to be realized.
Financial Instruments: Financial instruments include credit instruments, such as
commitments to make loans and standby letters of credit, issued to meet customer
financing needs. The face amount for these items represents the exposure to
loss, before considering customer collateral or ability to repay.
Statement of Cash Flows: Cash and cash equivalents are defined to include cash
on hand, amounts due from banks, and federal funds sold. Heartland reports net
cash flows for customer loan transactions, deposit transactions, and short-term
borrowings.
Earnings Per Common Share: Basic earnings per common share is net income divided
by the weighted average number of common shares outstanding during the period.
Diluted earnings per common share includes the dilutive effect of additional
potential common shares issuable under stock options.
Comprehensive Income: Comprehensive income consists of net income and other
comprehensive income. Other comprehensive income includes unrealized gains and
losses on securities available for sale which are also recognized as separate
components of equity. The accounting standard that requires reporting
comprehensive income first applies for 1998, with prior information restated to
be comparable. There are no reclassification adjustments to other comprehensive
income in 1999 or 1999.
Dividend Restriction: Banking regulations require maintaining certain capital
levels and may limit the dividends paid by the bank to the holding company or by
the holding company to shareholders.
Fair Values of Financial Instruments: Fair values of financial instruments are
estimated using relevant market information and other assumptions, as more fully
disclosed separately. Fair value estimates involve uncertainties and matters of
significant judgment regarding interest rates, credit risk, prepayments, and
other factors, especially in the absence of broad markets for particular items.
Changes in assumptions or in market conditions could significantly affect the
estimates. The fair value estimates of existing on- and off-balance sheet
financial instruments does not include the value of anticipated future business
or the values of assets and liabilities not considered financial instruments.
<PAGE>
HEARTLAND BANCSHARES, INC.
FORM 10-QSB
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1999
- --------------------------------------------------------------------------------
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Industry Segment: Internal financial information is primarily reported and
aggregated in one line of business, i.e. banking.
Financial Statement Presentation: Certain items in the prior financial
statements have been reclassified to correspond with the current
presentation.
NOTE 2 - GENERAL
These financial statements were prepared in accordance with the Securities and
Exchange Commission instructions for Form 10-QSB and for interim periods do not
include all of the disclosures necessary for a complete presentation of
financial position, results of operations and cash flows in conformity with
generally accepted accounting principles. These financial statements have been
prepared on a basis consistent with the annual financial statements and include,
in the opinion of management, all adjustments, consisting of only normal
recurring adjustments, necessary for a fair presentation of the results of
operations and financial position at the end of and for the periods presented.
NOTE 3 - PER SHARE DATA
The following illustrates the computation of basic and diluted earnings per
share for the three months ended March 31, 1999 and 1998.
<TABLE>
<CAPTION>
1999 1998
---- ----
<S> <C> <C>
Basic earnings per share
Net income/(loss) $ 127 $ (283)
========= =========
Weighted average shares outstanding 1,265,000 1,265,000
Basic earnings per share $ .10 $ (.22)
========= =========
1999 1998
---- ----
Dilutive earnings per share
Net income/(loss) $ 127 $ (283)
========= =========
Weighted average shares outstanding 1,265,000 1,265,000
Dilutive effect of assumed exercise of
stock options - 4,478
--------- ---------
Diluted average shares outstanding 1,265,000 1,269,478
Diluted earnings per share $ .10 $ (.22)
========= =========
</TABLE>
<PAGE>
HEARTLAND BANCSHARES, INC.
FORM 10-QSB
MANAGEMENT'S DISCUSSION AND ANALYSIS
MARCH 31, 1999
- --------------------------------------------------------------------------------
INTRODUCTION
The following discussion focuses on the financial condition at March 31, 1999
compared to December 31, 1998 and the results of operations for the three month
period ended March 31, 1999 in comparison to the three month period ended March
31, 1998 of Heartland Bancshares, Inc. (Heartland). Heartland was incorporated
May 27, 1997. Heartland was formed with the specific intent to form a wholly
owned subsidiary state chartered bank (Heartland Community Bank or Bank).
Heartland received approval from the Federal Reserve Bank of Chicago to be a
bank holding company in the fall of 1997. Operations of the Bank began December
17, 1997.
This discussion should be read in conjunction with the interim financial
statements and related footnotes.
The registrant is not aware of any trends, events or uncertainties that will
have or are reasonably likely to have a material effect on the liquidity,
capital resources or operations except as discussed herein. Also, the Registrant
is not aware of any current recommendations by regulatory authorities that would
have such effect if implemented.
GENERAL
As of October 2, 1997, Heartland raised approximately $11,735,000 in equity
capital through the sale of 1,265,000 shares of the Company's common stock at
$10 per share, net of underwriting discounts and offering costs. Proceeds from
the offering were used to capitalize the Bank and provide working capital.
Heartland's only activity beyond holding stock of the Bank is investment in
securities using working capital provided by the issuance of shares of common
stock.
Heartland's plan of operation is centralized around the growth of the Bank. The
primary operation of the Bank is to accept deposits and make loans. The
operating results of Heartland are affected by general economic conditions, the
monetary and fiscal policies of federal agencies and the regulatory policies of
agencies that regulate financial institutions. Heartland's cost of funds is
influenced by interest rates on competing investments and general market rates
of interest. Lending activities are influenced by consumer and commercial
demand, which in turn are affected by the interest rates at which such loans are
made, general economic conditions and the availability of funds for lending
activities.
<PAGE>
The Federal Financial Institutions Examination Council (FFIEC) has issued
several statements regarding preparing for the Year 2000 date change and related
issues. Those statements have identified specific actions and plans to be
adopted by financial institutions, all of which would be materially adversely
affected by Year 2000 failure of loan and deposit data processing systems. As of
March 31, 1999, Heartland has implemented the procedures and plans set out by
FFIEC. Heartland has completed the evaluation and testing of computer and
software systems identified as mission critical, in cooperation with its
independent data processing service provider, and estimates that the amount of
costs that will be incurred to prepare for the date change will not be
significant. Although Heartland has no reason to expect that its data processing
and other costs and expenses will be significant or that its financial condition
and results of operations will be adversely affected by Year 2000 problems, this
is a forward-looking statement, and actual expenses may vary materially from
current expectations due to the possibility, among other risks, that the
Company's data processing service provider will be unable to perform in
accordance with the Year 2000 plan and the possibility that the Company's
customers may not be Year 2000 compliant.
FINANCIAL CONDITION
Heartland experienced continued growth through the first three months of 1999.
Total assets at March 31, 1999 were $75.9 million, an increase of $11.2 million
or 17.31% from the December 31, 1998 total assets of $64.7 million. Investment
securities total $11.7 million at March 31, 1999 compared to $10.5 million at
December 31, 1998, an increase of $1.2 million or 11.43%. Total gross loans were
$61.1 million at March 31, 1999, representing growth of $11.7 million, or
23.68%, from the December 31, 1998 total of $49.4 million.
An increase in total deposits of $11.3 million to $64.1 million at March 31,
1999, or 21.40% from $52.8 million at December 31, 1998 primarily funded the
growth in assets. Short-term borrowings were decreased by $216,000 from $740,000
at December 31, 1998 to $524,000 at March 31, 1999.
Heartland's total equity to total asset ratio was 14.44% at March 31, 1999
compared to 16.88% at December 31, 1998. The change was primarily due to the
growth in assets, offset by the total comprehensive income for the three months
ended March 31, 1999. Book value per common share of Heartland was $8.66 at
March 31, 1999 compared to $8.63 at December 31, 1998. The change in book value
per common share resulted from the total comprehensive income for the three
months ended March 31, 1999.
RESULTS OF OPERATIONS
Heartland recorded net income of $127,000 for the three months ended March 31,
1999 compared to a net loss of $283,000 for the three months ended March 31,
1998. Interest income for the three months ended March 31, 1999 was $1.5 million
and was $353,000 for the three months ended March 31, 1998. Non-interest income
was $27,000 for the three months ended March 31, 1999. Comparatively,
non-interest income was $4,000 for the three months ended March 31, 1998.
<PAGE>
Interest expense of $671,000 was incurred during the three months ended March
31, 1999. Interest expense during the three months ended March 31, 1998 was
$83,000. Interest expense during the three months ended March 31, 1999 and the
three months ended March 31, 1998 is related to interest bearing deposits and
short-term borrowings.
Provision for loan losses recorded during the three month periods ended March
31, 1999 was $176,000 compared to $143,000 for the three months ended March 31,
1998.
Salaries and benefits expense was $298,000 for the three months ended March 31,
1999 compared to $235,000 for the three months ended March 31, 1998. The
increase was primarily due to additional staff hired to accomidate growth.
Net occupancy and equipment expenses of $49,000 were incurred during the three
months ended March 31, 1999. During the three months ended March 31, 1998 the
net occupancy and equipment expenses were $10,000. The Bank entered into a 10
year lease agreement with a non-related party for a facility located on Highway
135 in Greenwood, Indiana and commenced banking activities in that facility in
May, 1998.
Data processing expense was $62,000 for the three months ended March 31, 1999
compared to $29,000 for the three months ended March 31, 1998. In the fourth
quarter of 1997, the Bank entered into a three-year contract with a third party
service provider for core data processing, with monthly expense partially based
on volume of accounts and transactions. The increase in data processing expenses
is due almost entirely to the increase in deposit accounts and transactions.
Printing and supplies expense was $13,000 for the three months ended March 31,
1999 and $25,000 for the three months ended March 31, 1998.
Heartland incurred advertising expense of $17,000 during the three months ended
March 31, 1999 compared to $22,000 during the three months ended March 31 1998.
Directors fees expense was $7,000 for both the three months ended March 31, 1999
and the three months ended March 31, 1998.
<PAGE>
Credit reports and other loan expenses were $14,000 for the three months ended
March 31, 1999 and $11,000 for the three months ended March 31, 1998
Professional fees expense for the three months ended March 31, 1999 was $12,000
compared to $22,000 for the three months ended March 31, 1998.
The remaining expenses of $33,000 during the three months ended March 31, 1999
and $27,000 during the three months ended March 31, 1998 relate to various other
items such as postage, insurance and training.
CAPITAL RESOURCES
Shareholders' equity totaled $11.0 million at March 31, 1999, compared to $10.9
million at December 31, 1998. The change is attributable to the total
comprehensive income for the three months ended March 31, 1999. As of March 31,
1999, 1,265,000 shares of common stock were issued and outstanding. Additional
paid-in capital was $10.5 million at December 31, 1998 and March 31, 1999.
LIQUIDITY
Liquidity management for Heartland focuses on the ability to keep funds
available to meet the requirements of withdrawals of depositors and funding of
new loans and investments. The primary source of liquidity for Heartland is the
receipt of new deposits. The Bank has the ability to borrow Federal funds from
other commercial banks on a daily basis. Such borrowings are secured by
investment securities. The Bank also has the ability to borrow from the Federal
Home Loan Bank of Indianapolis with various repayment terms ranging from 1 day
to 15 years. Such borrowings would be secured by a "blanket" collateral
agreement covering all available mortgage loans and investment securities in the
Bank's portfolio. The Bank had no such borrowings outstanding at March 31, 1999
or December 31, 1998. Heartland manages liquidity through the use of deposits
with other financial institutions, Federal Funds and investment securities.
<PAGE>
HEARTLAND BANCSHARES, INC.
FORM 10-QSB
PART II
- --------------------------------------------------------------------------------
Item 6 - Exhibits and Reports on Form 8-K:
(a) Exhibit 27: Financial Data Schedule
(b) No reports on Form 8-K were filed during the three months ended
March 31, 1999.
<PAGE>
HEARTLAND BANCSHARES, INC.
FORM 10-QSB
SIGNATURES
- --------------------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
HEARTLAND BANCSHARES, INC.
(Registrant)
Date: 5/11/99 /s/ Steve Bechman
------------ -----------------
Steve Bechman
President and
Chief Executive Officer
Date: 5/11/99 /s/ Jeffery D. Joyce
------------ --------------------
Jeffery D. Joyce
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
This schedule contains summary financial information extracted from the
financial statements contained in the filer's Form 10-QSB for the Quarter
ended March 31, 1999, and is filed in its entirety by reference to such
finanacial statements.
</LEGEND>
<CIK> 0001042905
<NAME> Heartland Bancshares, Inc.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> Dec-31-1999
<PERIOD-START> Jan-01-1999
<PERIOD-END> Mar-31-1999
<CASH> 413
<INT-BEARING-DEPOSITS> 950
<FED-FUNDS-SOLD> 350
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 0
<INVESTMENTS-CARRYING> 11,692
<INVESTMENTS-MARKET> 11,663
<LOANS> 61,090
<ALLOWANCE> 916
<TOTAL-ASSETS> 75,928
<DEPOSITS> 64,060
<SHORT-TERM> 524
<LIABILITIES-OTHER> 383
<LONG-TERM> 0
0
0
<COMMON> 11,731
<OTHER-SE> (770)
<TOTAL-LIABILITIES-AND-EQUITY> 75,928
<INTEREST-LOAN> 1,265
<INTEREST-INVEST> 172
<INTEREST-OTHER> 15
<INTEREST-TOTAL> 1,452
<INTEREST-DEPOSIT> 665
<INTEREST-EXPENSE> 6
<INTEREST-INCOME-NET> 781
<LOAN-LOSSES> 176
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 505
<INCOME-PRETAX> 127
<INCOME-PRE-EXTRAORDINARY> 127
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 127
<EPS-PRIMARY> .10
<EPS-DILUTED> .10
<YIELD-ACTUAL> 4.50
<LOANS-NON> 0
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 742
<CHARGE-OFFS> 2
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 916
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 916
</TABLE>
