Car dealer loans throw Heartland for loss

Heartland Bancshares Inc. said today it lost $323,000 in the third quarter because it set aside additional reserves in anticipation of two used car lots’ not repaying their loans.

The Franklin-based parent of Heartland Community Bank said it increased its loan loss provision to $1.1 million from $60,000 in the same quarter last year.

Without identifying the car lots, the bank said the lots continued selling cars without repaying the loans, and that the incidents were discovered during routine audits.

Please enable JavaScript to view this content.

Story Continues Below

Editor's note: You can comment on IBJ stories by signing in to your IBJ account. If you have not registered, please sign up for a free account now. Please note our updated comment policy that will govern how comments are moderated.

{{ articles_remaining }}
Free {{ article_text }} Remaining
{{ articles_remaining }}
Free {{ article_text }} Remaining Article limit resets on
{{ count_down }}