Heartland Bancshares’ net interest income decreased by $89,000 for the year ended December 31, 2007, compared to the same period in 2006, due to higher rates paid on deposits and other borrowings. Heartland’s net interest margin decreased to 3.66% in 2007 from 3.76% in 2006 primarily due to the increase in average rates paid on deposits and other borrowings.
Heartland’s total assets of the company grew $4.7 million or 2.29% to $209 million at December 31, 2007 from $205 million in 2006 and total loans grew $16 million to $150 million in 2007 or 11.99%.
For the fourth quarter 2007, net income of Heartland has declined to $12,000 or $0.01 per diluted share from net income of $363,000 or $0.25 per diluted share for comparable period in 2006.
Steve Bechman, president of Heartland Bancshares, said: The two brightest spots in our performance were the $16 million of loan growth and the $341,000 growth in fee and deposit income. Like many banks, our net interest margin declined in the declining interest rate environment that we experienced in 2007. Asset quality has become a focal point for most banks in the current economy including Heartland.
