Heartland Bancshares, Inc. Announces Adjustment to 2004 Net Income

Business Wire, Feb 15, 2005

FRANKLIN, Ind. -- Heartland Bancshares, Inc. IN (OTCBB:HRTB) announced that it recorded net income of $1,224,000 or $.88 per share for the year ended December 31, 2004 and net income of $233,000 or $.17 per share for the fourth quarter 2004. Previously, in a press release issued February 2, 2005, Heartland announced that it recorded net income of $1,361,000 or $.98 per share for the year ended December 31, 2004 and net income of $370,000 or $.27 per share for the fourth quarter 2004. The adjustment to net income is attributable to costs associated to the terminated merger agreement with Blue River Bancshares, Inc. and related tax effect of those costs. Heartland had previously capitalized certain costs associated with the proposed merger. The merger agreement was terminated on February 10, 2005 causing all merger related costs to be expensed. Since the costs were incurred during 2004, Heartland has recorded the related expense effective in calendar year 2004 earnings.

Heartland recorded net income of $414,000 or $.30 per share for the year ended December 31, 2003 and net income of $172,000 or $.12 per share for the fourth quarter 2003.

President Steve Bechman commented on the earnings. "We are proud to report the highest annual earnings in our seven years of operations, even after this adjustment for merger related costs. Our employees and directors have spent a great deal of time and effort over the past three years in efforts to bring the bank to this point. We greatly appreciate their efforts as well as the dedication shown by our shareholders and customers."

HEARTLAND BANCSHARES, INC.
                      SELECTED BALANCE SHEET DATA
                      December 31, 2004 and 2003
                     (Dollar amounts in thousands)
                              (Unaudited)

                                                      2004     2003
                                                    -------- --------

Total cash and cash equivalents                     $  5,771 $ 10,717
Securities available-for-sale                         42,162   35,108
Loans held for sale                                      929    2,058
Gross loans                                          124,339  113,556
Allowance for loan losses                              2,491    3,301
Total assets                                         185,837  167,929
Total deposits                                       155,662  137,506
Total Liabilities                                    172,331  155,377
Shareholders' equity                                  13,506   12,552


                      HEARTLAND BANCSHARES, INC.
                    SELECTED INCOME STATEMENT DATA
       Three and Twelve Months ended December 31, 2004 and 2003
         (Dollar amounts in thousands, except per share data)
                              (Unaudited)

                                 Three Months         Twelve Months
                              Ended December 31,    Ended December 31,
                                2004      2003        2004      2003
                              -------   -------     -------   -------
Interest income               $ 2,481   $ 2,222     $ 9,236   $ 9,230
Interest expense                  690       564       2,331     2,758
Provision for loan losses           -        60        (200)      692
Noninterest income                515       413       1,960     2,222
Noninterest expense             1,987     1,761       7,235     7,412
Income tax expense                 86        78         606       176
Net income                        233       172       1,224       414
Basic earnings per share          .17       .12         .88       .30