The IBJ

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.