(NASDAQ: HBNC) – Horizon Bancorp today announced its unaudited
financial results for the three-month period ended March 31,
2015.
SUMMARY:
- Net income for the first quarter of
2015 increased 56.8% or $1.9 million compared to the same period in
2014 to $5.4 million or $.55 diluted earnings per share.
- Total loans increased 24.3% on an
annualized basis during the first quarter of 2015.
- Commercial loans increased 12.9% on an
annualized basis during the first quarter of 2015.
- Net interest income for the first
quarter of 2015 increased 27.2% or $3.6 million compared to the
same period in 2014.
- Non-interest income for the first
quarter of 2015 increased 28.0% or $1.5 million compared to the
same period in 2014.
- Net interest margin, excluding the
impact of acquisitions (“core net interest margin”), was 3.47% for
the first quarter of 2015 compared to 3.38% for the same period in
2014.
- Return on average assets was 1.05% for
the first quarter of 2015.
- Return on average common equity was
11.66% for the first quarter of 2015.
- Horizon’s tangible book value per share
rose to $16.80 at March 31, 2015, compared to $16.26 at December
31, 2014 and $15.52 at March 31, 2014. $16.80 is the highest
tangible book value per share in the company’s history.
- On February 19, 2015, Horizon announced
the acquisition of Peoples Bancorp and its wholly-owned subsidiary,
Peoples Federal Savings Bank of DeKalb County, headquartered in
Auburn, Indiana.
- Horizon’s full-service Carmel, Indiana
office opened on February 23, 2015.
Craig Dwight, Chairman and CEO, commented: “I am pleased to
announce Horizon’s 2015 first quarter results, which reflected
positive contributions from all four revenue streams – retail
banking, business banking, mortgage banking and wealth management.
Headlining the quarter was the continued growth of our loan
portfolio, an increase in mortgage activity and the announcement of
a strategic partnership whereby Horizon will acquire Peoples
Bancorp, a company with approximately $486.6 million in total
assets headquartered in Auburn, Indiana.”
Dwight continued, “Our investments in people and technology
along with an improving economic environment resulted in a strong
first quarter of 2015. Net income and diluted earnings per share,
excluding non-core items, increased 38.7% and 30.5%, respectively,
compared to the same period of 2014. Loan growth was solid across
all product types, which continued to help offset net interest
margin pressure. Mortgage activity increased as the recent decrease
in interest rates boosted mortgage warehouse balances and the gain
on sale of mortgage loans, continuing to validate this revenue
stream as a quality source of capital generation.”
Non-GAAP Reconciliation of Net Income and Diluted
Earnings per Share (Dollar Amounts in Thousands Except per
Share Data) Three Months
Ended March 31 2015 2014
Non-GAAP
Reconciliation of Net Income
(Unaudited) (Unaudited) Net income as
reported
$ 5,358 $ 3,417 Merger expenses
146
311 Tax effect
(51 ) (109
) Net income excluding merger expenses
5,453 3,619
Acquisition related purchase accounting adjustments ("PAUs")
(1,083 ) (389 ) Tax effect
379
136 Net income excluding PAUs
4,749 3,367 Gain on sale of investment securities
(124 ) - Tax effect
43
- Net income excluding gain on sale of
investment securities
$ 4,668 $
3,367
Non-GAAP
Reconciliation of Diluted Earnings per Share
Diluted earnings per share as reported
$ 0.55 $ 0.38
Merger expenses
0.02 0.03 Tax effect
(0.01
) (0.01 ) Diluted earnings per share
excluding merger expenses
0.56 0.40 Acquisition
related PAUs
(0.11 ) (0.04 ) Tax effect
0.04 0.02 Diluted
earnings per share excluding PAUs
0.49 0.37 Gain on
sale of investment securities
(0.01 ) - Tax effect
0.00 - Net income
excluding gain on sale of investment securities
$
0.48 $ 0.37
The following table presents the amount and growth rate of loans
by product type for the three months ended March 31, 2015.
Loan Growth by Type Three Months Ended March 31,
2015 (Dollars in Thousands)
Annualized March 31 December 31
Amount Percent Percent 2015
2014 Change Change
Change (Unaudited)
Commercial loans $ 695,736 $ 674,314 $ 21,422
3.2% 12.9% Residential mortgage loans 260,390 254,625 5,765 2.3%
9.2% Consumer loans 326,334 320,459 5,875 1.8% 7.4% Held for sale
loans 6,229 6,143 86 1.4% 5.7% Subtotal 1,288,689
1,255,541 33,148 2.6% 10.7% Mortgage warehouse loans 178,899
129,156 49,743 38.5% 156.2% Total loans $ 1,467,588 $
1,384,697 $ 82,891 6.0% 24.3%
“The aforementioned loan growth has been critical in maintaining
our net interest margin throughout the low interest rate
environment that continues to persist,” Dwight continued.
“Horizon’s core net interest margin, excluding income from
acquisition-related purchase accounting adjustments, increased from
3.38% in the first quarter of 2014 to 3.47% in the first quarter of
2015. The core net interest margin decreased only two basis points
from the previous quarter.”
Non-GAAP Reconciliation of Net Interest Margin
(Dollar Amounts in Thousands)
Three Months
Ended March 31 December March
31 2015 2014 2014
Net Interest
Margin As Reported
(Unaudited) (Unaudited) Net interest income
$ 16,886 $ 16,523 $ 13,272 Average interest-earning
assets
1,899,870 1,865,750 1,598,285 Net interest income as
a percent of average interest-earning assets
3.70 %
3.64 % 3.48 %
Impact of
Acquisitions
Interest income from acquisition-related purchase accounting
adjustments
$ (1,083 ) $ (719 ) $ (389 )
Net Interest
Margin Excluding Impact of Acquisitions
Net interest income
$ 15,803 $ 15,804 $ 12,883
Average interest-earning assets
1,899,870 1,865,750
1,598,285 Net interest income as a percent of average
interest-earning assets
3.47 % 3.49 % 3.38 %
Horizon’s loan loss reserve ratio, excluding loans with
credit-related purchase accounting adjustments, stood at 1.22% as
of March 31, 2015.
Allowance for Loan and Lease Loss Detail As of
March 31, 2015 (Dollars in Thousands, Unaudited)
Horizon Legacy
Heartland Summit Total
Pre-discount loan balance $ 1,341,040 $ 32,854 $ 93,760 $ 1,467,654
Allowance for loan losses (ALLL) 16,380 254 - 16,634 Loan
discount N/A 2,061
4,234 6,295 Total ALLL+loan discount
16,380 2,315 4,234 22,929
Loans, net $ 1,324,660 $ 30,539
$ 89,526 $ 1,444,725 ALLL/ pre-discount
loan balance 1.22 % 0.77 % 0.00 % 1.13 % Loan discount/
pre-discount loan balance N/A 6.27 % 4.52 % 0.43 % Total ALLL+loan
discount/ pre-discount loan balance 1.22 % 7.05 % 4.52 % 1.56 %
On February 18, 2015, Horizon entered into an agreement to
acquire Peoples Bancorp and its wholly-owned subsidiary, Peoples
Federal Savings Bank of DeKalb County (collectively, “Peoples”), in
a cash and stock merger. The acquisition is expected to close early
in the third quarter of 2015, subject to regulatory and shareholder
approval. Headquartered in Auburn, Indiana, Peoples serves the
greater northeast Indiana and southwest Michigan markets through 16
full-service banking locations. As of December 31, 2014, Peoples
Bancorp had total assets of $486.6 million.
Dwight noted, “This acquisition aligns well with Horizon’s
strategic growth plan by enhancing our existing presence in
southwest Michigan and providing entry into the attractive
northeast Indiana market. Peoples has proudly served its customers
for eighty nine years with good advice and a commitment to
community banking. We look forward to continuing this commitment
and are thrilled to partner with their outstanding team of banking
professionals.”
Income Statement Highlights
Net income for the first quarter of 2015 was $5.4 million or
$.55 diluted earnings per share compared to $3.4 million or $.38
diluted earnings per share in the first quarter of 2014. The
increase in net income from the previous year reflects an increase
in interest income primarily due to loan growth and an increase in
non-interest income due to an increase in gain on sale of mortgage
loans, interchange fees and fiduciary activities partially offset
by an increase in the provision expense and non-interest
expenses.
Horizon’s net interest margin was 3.70% during the first quarter
of 2015, up from 3.64% for the prior quarter and 3.48% for same
period of 2014. The increase in net interest margin compared to the
prior quarter and the same period of 2014 was due to
acquisition-related purchase accounting adjustments, lower funding
costs and a higher ratio of loans as a percentage of average
earning assets. Excluding purchase accounting adjustments related
to the 2012 Heartland Bancshares, Inc. and the 2014 SCB Bancorp,
Inc. acquisitions, the margin would have been 3.47% for the first
quarter of 2015 compared to 3.49% for the prior quarter and 3.38%
for the same period of the prior year. Interest income from
acquisition-related purchase accounting adjustments was $1.1
million, $719,000, and $389,000 for the three months ended March
31, 2015, December 31, 2014 and March 31, 2014, respectively.
Residential mortgage lending activity during the first quarter
of 2015 generated $2.4 million in income from the gain on sale of
mortgage loans, an increase of $1.0 million from the first quarter
of 2014. Total origination volume in the first quarter of 2015,
including loans placed into portfolio, totaled $88.7 million,
representing an increase of 40.7% from the first quarter of 2014 of
$52.6 million. Purchase money mortgage originations during the
first quarter of 2015 represented 50.2% of total originations
compared to 67.6% of originations during the previous quarter and
70.6% during the first quarter of 2014.
Lending Activity
Total loans increased $82.9 million from $1.4 billion as of
December 31, 2014 to $1.5 billion as of March 31, 2015 as mortgage
warehouse loans increased by $50.0 million, residential mortgage
loans increased by $5.8 million and consumer loans increased by
$5.9 million. Commercial loans increased $21.4 million or 12.9% on
an annualized basis from $674.3 million at December 31, 2014 to
$695.7 million at March 31, 2015.
Total loan balances in the Kalamazoo and Indianapolis markets
continued to grow during the first quarter of 2015 to $145.8
million and $132.9 million, respectively, as of March 31, 2015.
Kalamazoo’s aggregate loan balances increased $3.6 million or 10.1%
on an annualized basis, and Indianapolis’ aggregate loan balances
increased $9.5 million or 31.2% on an annualized basis. Combined,
these markets contributed $13.1 million in loan growth during the
first three months of 2015 or 19.9% on an annualized basis.
The provision for loan losses was $614,000 for the three months
ended March 31, 2015 compared to no provision expense for the same
period of 2014. The higher provision for loan losses for the first
quarter of 2015 compared to the same period of 2014 was primarily
due to continued loan growth.
The ratio of the allowance for loan losses to total loans
decreased to 1.13% as of March 31, 2015 from 1.19% as of December
31, 2014 due to an increase in total loans, partially offset by an
increase in the allowance for loan losses from $16.5 million as of
December 31, 2014 to $16.6 million as of March 31, 2015. The ratio
of the allowance for loan losses to total loans, excluding loans
with credit-related purchase accounting adjustments, was 1.22% as
of March 31, 2015.
Non-performing loans totaled $22.4 million as of March 31, 2015
and December 31, 2014. Compared to December 31, 2014,
non-performing real estate loans and consumer loans increased by
$168,000 and $85,000, respectively, and non-performing commercial
loans decreased by $315,000. As a percentage of total loans,
non-performing loans were 1.52% at March 31, 2015, down 10 basis
points from 1.62% at December 31, 2014.
Expense Management
Total non-interest expense was $1.6 million higher in the first
quarter of 2015 compared to the same period of 2014. The increase
in the first quarter of 2015 compared to the same period of 2014
was primarily due to an increase in salaries expense, net occupancy
expenses and other expenses due to overall company growth and
market expansion and increases in commission and bonuses and loan
expense due to an increase in loan volume.
Use of Non-GAAP Financial Measures
Certain information set forth in this press release refers to
financial measures determined by methods other than in accordance
with GAAP. Specifically, we have included non-GAAP financial
measures of the net interest margin and the allowance for loan and
lease losses excluding the impact of acquisition-related purchase
accounting adjustments and net income and diluted earnings per
share excluding the impact of one-time costs related to
acquisitions, acquisition-related purchase accounting adjustments
and other events that are considered to be non-recurring. Horizon
believes that these non-GAAP financial measures are helpful to
investors and provide a greater understanding of our business
without giving effect to the purchase accounting impacts and
one-time costs of acquisitions and non-core items, although these
measures are not necessarily comparable to similar measures that
may be presented by other companies and should not be considered in
isolation or as a substitute for the related GAAP measure.
About Horizon
Horizon Bancorp is a locally owned, independent, commercial bank
holding company serving Northern and Central Indiana and Southwest
and Central Michigan through its commercial banking subsidiary
Horizon Bank, NA. Horizon also offers mortgage-banking services
throughout the Midwest. Horizon Bancorp may be reached online at
www.horizonbank.com. Its common stock is traded on the NASDAQ
Global Select Market under the symbol HBNC.
Forward Looking Statements
This press release may contain forward-looking statements
regarding the financial performance, business prospects, growth and
operating strategies of Horizon. For these statements, Horizon
claims the protections of the safe harbor for forward-looking
statements contained in the Private Securities Litigation Reform
Act of 1995. Statements in this press release should be considered
in conjunction with the other information available about Horizon,
including the information in the filings we make with the
Securities and Exchange Commission. Forward-looking statements
provide current expectations or forecasts of future events and are
not guarantees of future performance. The forward-looking
statements are based on management’s expectations and are subject
to a number of risks and uncertainties. We have tried, wherever
possible, to identify such statements by using words such as
“anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,”
“will” and similar expressions in connection with any discussion of
future operating or financial performance. Although management
believes that the expectations reflected in such forward-looking
statements are reasonable, actual results may differ materially
from those expressed or implied in such statements. Risks and
uncertainties that could cause actual results to differ materially
include risk factors relating to the banking industry and the other
factors detailed from time to time in Horizon’s reports filed with
the Securities and Exchange Commission, including those described
in its Form 10-K. Undue reliance should not be placed on the
forward-looking statements, which speak only as of the date hereof.
Horizon does not undertake, and specifically disclaims any
obligation, to publicly release the result of any revisions that
may be made to update any forward-looking statement to reflect the
events or circumstances after the date on which the forward-looking
statement is made, or reflect the occurrence of unanticipated
events, except to the extent required by law.
HORIZON BANCORP Financial Highlights
(Dollars in thousands except share and per share data and
ratios, Unaudited) March 31
December 31 September 30 June 30
March 31 2015 2014
2014 2014 2014 Balance
sheet: Total assets $ 2,153,965 $ 2,076,922 $ 2,037,045 $
2,073,251 $ 1,806,583 Investment securities 495,315 489,531 495,941
537,618 529,340 Commercial loans 695,736 674,314 677,349 648,202
528,635 Mortgage warehouse loans 178,899 129,156 105,133 140,896
102,146 Residential mortgage loans 260,390 254,625 251,739 235,523
189,893 Consumer loans 326,334 320,459 308,800 296,873 280,120
Earning assets 1,974,251 1,885,576 1,860,041 1,882,724 1,649,653
Non-interest bearing deposit accounts 285,181 267,667 278,527
270,023 238,499 Interest bearing transaction accounts 905,216
930,582 881,299 919,024 840,258 Time deposits 274,699 284,070
289,837 310,056 276,814 Borrowings 440,415 351,198 350,113 340,201
236,043 Subordinated debentures 32,680 32,642 32,603 32,564 32,525
Common stockholders' equity 186,991 181,914 177,280 174,836 157,283
Total stockholders’ equity 199,491 194,414 189,780 187,336 169,783
Income statement: Three months ended Net
interest income $ 16,886 $ 16,523 $ 16,400 $ 16,788 $ 13,272
Provision for loan losses 614 978 1,741 339 - Non-interest income
7,066 6,738 7,390 6,627 5,522 Non-interest expenses 16,068 15,671
15,353 16,408 14,514 Income tax expense 1,912
1,664 1,738 1,890
863 Net income 5,358 4,948 4,958 4,778
3,417 Preferred stock dividend (31 ) (31 )
(40 ) (31 ) (31 ) Net
income available to common shareholders $ 5,327 $
4,917 $ 4,918 $ 4,747 $
3,386
Per share data: Basic earnings per share
$ 0.58 $ 0.53 $ 0.53 $ 0.52 $ 0.39 Diluted earnings per share 0.55
0.51 0.51 0.50 0.38 Cash dividends declared per common share 0.14
0.14 0.13 0.13 0.11 Book value per common share 20.25 19.75 19.25
19.00 18.22 Tangible book value per common share 16.80 16.26 15.75
15.47 15.52 Market value - high 25.86 26.73 23.67 22.58 24.91
Market value - low $ 22.38 $ 22.83 $ 20.65 $ 19.57 $ 20.27 Weighted
average shares outstanding - Basic 9,216,011 9,212,156 9,208,707
9,182,986 8,630,966 Weighted average shares outstanding - Diluted
9,609,506 9,628,240 9,588,332 9,560,939 9,021,786
Key
ratios: Return on average assets 1.05 % 0.96 % 0.96 % 0.97 %
0.79 % Return on average common stockholders' equity 11.66 10.72
10.95 11.82 8.81 Net interest margin 3.70 3.64 3.59 3.78 3.48 Loan
loss reserve to total loans 1.13 1.19 1.20 1.18 1.46 Non-performing
loans to loans 1.52 1.62 1.47 1.41 1.59 Average equity to average
assets 9.56 9.56 9.33 8.79 9.65 Bank only capital ratios: Tier 1
capital to average assets 8.75 8.80 8.63 8.78 9.11 Tier 1 capital
to risk weighted assets 11.47 11.96 12.13 11.47 12.87 Total capital
to risk weighted assets 12.54 13.08 13.26 12.53 14.12
Loan data: Substandard loans $ 27,355 $ 27,661 $ 35,023 $
35,495 $ 32,648 30 to 89 days delinquent 3,945 5,082 3,310 3,671
2,613 90 days and greater delinquent - accruing interest $
19 $ 115 $ 62 $ 42 $ 202 Trouble debt restructures - accruing
interest 4,368 4,372 5,838 5,614 4,997 Trouble debt restructures -
non-accrual 4,711 2,643 3,061 3,178 3,662 Non-accrual loans
13,282 15,312 10,828
9,844 8,775 Total
non-performing loans $ 22,380 $ 22,442
$ 19,789 $ 18,678 $ 17,636
HORIZON BANCORP Allocation of the Allowance
for Loan and Lease Losses
(Dollars in Thousands, Unaudited)
March 31 December 31
September 30 June 30 March
31 2015 2014 2014
2014 2014 Commercial
$ 7,876 $
7,910 $ 7,515 $ 6,958 $ 7,236 Real estate
3,281 2,508 3,304
2,367 2,813 Mortgage warehousing
1,272 1,132 1,300 1,559
1,665 Consumer
4,205 4,951 4,041 4,776 4,388 Unallocated
- - - -
- Total
$ 16,634 $ 16,501
$ 16,160 $ 15,660 $ 16,102
Net Charge-offs
(Recoveries)
(Dollars in Thousands, Unaudited)
Three months ended March 31
December 31 September 30 June
30 March 31 2015 2014
2014 2014 2014 Commercial
$ (11 ) $ 199 $ 1,006 $ 185 $ (361 ) Real
estate
20 101 19 169 18 Mortgage warehousing
- - - -
- Consumer
472 336
217 426 233 Total
$
481 $ 636 $ 1,242 $ 780 $
(110 )
Total Non-performing Loans
(Dollars in Thousands, Unaudited)
March 31 December 31
September 30 June 30 March
31 2015 2014 2014
2014 2014 Commercial
$ 11,540 $
11,855 $ 9,323 $ 8,243 $ 7,313 Real estate
6,062 5,894 6,312
6,672 6,357 Mortgage warehousing
- - - - - Consumer
4,778 4,693 4,154
3,763 3,966 Total
$ 22,380 $
22,442 $ 19,789 $ 18,678 $ 17,636
Other Real Estate Owned and Repossessed Assets
(Dollars in Thousands, Unaudited)
March 31 December 31
September 30 June 30 March
31 2015 2014 2014
2014 2014 Commercial
$ 307 $ 411
$ 376 $ 452 $ 812 Real estate
219 636 875 752 867 Mortgage
warehousing
- - - - - Consumer
223
154 3 23 39 Total
$ 749 $ 1,201 $ 1,254 $ 1,227
$ 1,718
HORIZON BANCORP AND SUBSIDIARIES
Average Balance Sheets
(Dollar Amounts in Thousands,
Unaudited)
Three Months Ended
Three Months Ended March 31, 2015 March 31,
2014 Average Average Average
Average Balance Interest
Rate Balance Interest
Rate ASSETS Interest-earning assets Federal
funds sold $ 4,804 $ 2 0.17 % $ 7,439 $ 4 0.22 % Interest-earning
deposits 10,772 3 0.11 % 5,722 3 0.21 % Investment securities -
taxable 360,554 2,149 2.42 % 386,793 2,383 2.50 % Investment
securities - non-taxable (1) 140,748 1,077 4.31 % 147,840 1,123
4.28 % Loans receivable (2)(3) 1,382,992
16,862 4.96 % 1,050,491 12,954
5.00 % Total interest-earning assets (1) 1,899,870 20,093 4.39 %
1,598,285 16,467 4.29 % Non-interest-earning assets Cash and
due from banks 28,994 24,890 Allowance for loan losses (16,489 )
(16,166 ) Other assets 157,553 138,322
$ 2,069,928 $ 1,745,331
LIABILITIES
AND SHAREHOLDERS' EQUITY Interest-bearing liabilities
Interest-bearing deposits $ 1,215,862 $ 1,232 0.41 % $ 1,079,514 $
1,277 0.48 % Borrowings 337,430 1,479 1.78 % 228,138 1,422 2.53 %
Subordinated debentures 32,657 496 6.16
% 32,502 496 6.19 % Total
interest-bearing liabilities 1,585,949 3,207 0.82 % 1,340,154 3,195
0.97 % Non-interest-bearing liabilities Demand deposits
271,158 223,974 Accrued interest payable and other liabilities
14,989 12,807 Shareholders' equity 197,832
168,396 $ 2,069,928 $ 1,745,331
Net interest income/spread $ 16,886 3.57 % $ 13,272 3.32 %
Net interest income as a percent of average interest earning assets
(1) 3.70 % 3.48 % (1) Securities balances represent
daily average balances for the fair value of securities. The
average rate is calculated based on the daily average balance for
the amortized cost of securities. The average rate is presented on
a tax equivalent basis. (2) Includes fees on loans. The inclusion
of loan fees does not have a material effect on the average
interest rate. (3) Non-accruing loans for the purpose of the
computations above are included in the daily average loan amounts
outstanding. Loan totals are shown net of unearned income and
deferred loan fees.
HORIZON BANCORP AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Dollar Amounts in Thousands)
March 31 December
31 2015 2014
(Unaudited)
Assets Cash and due from banks
$
38,676 $ 43,476 Investment securities, available for sale
331,033 323,764 Investment securities, held to maturity
(fair value of $171,405 and $169,904)
164,282 165,767 Loans
held for sale
6,229 6,143 Loans, net of allowance for loan
losses of $16,634 and $16,501
1,444,725 1,362,053 Premises
and equipment, net
53,989 52,461 Federal Reserve and Federal
Home Loan Bank stock
11,348 11,348 Goodwill
28,176
28,176 Other intangible assets
3,738 3,965 Interest
receivable
8,431 8,246 Cash value life insurance
39,640 39,382 Other assets
23,698
32,141 Total assets
$ 2,153,965
$ 2,076,922
Liabilities Deposits Non-interest bearing
$ 285,181 $ 267,667 Interest bearing
1,179,915 1,214,652 Total deposits
1,465,096 1,482,319 Borrowings
440,415 351,198
Subordinated debentures
32,680 32,642 Interest payable
504 497 Other liabilities
15,779
15,852 Total liabilities
1,954,474
1,882,508
Commitments and contingent
liabilities Stockholders’ Equity Preferred stock,
Authorized, 1,000,000 shares Series B shares $.01 par value, $1,000
liquidation value Issued 12,500 shares
12,500 12,500 Common
stock, no par value Authorized, 22,500,000 shares Issued, 9,289,916
and 9,278,916 shares Outstanding, 9,232,163 and 9,213,036 shares
- - Additional paid-in capital
46,064 45,916 Retained
earnings
138,500 134,477 Accumulated other comprehensive
income (loss)
2,427 1,521 Total
stockholders’ equity
199,491
194,414 Total liabilities and stockholders’ equity
$
2,153,965 $ 2,076,922
HORIZON
BANCORP AND SUBSIDIARIES Condensed Consolidated Statements
of Income
(Dollar Amounts in Thousands, Except Per
Share Data)
Three Months Ended March 31
2015 2014 (Unaudited)
(Unaudited) Interest Income
Loans receivable
$ 16,862 $ 12,954 Investment
securities Taxable
2,154 2,390 Tax exempt
1,077 1,123 Total
interest income
20,093
16,467
Interest Expense Deposits
1,232 1,277
Borrowed funds
1,479 1,422 Subordinated debentures
496 496 Total interest
expense
3,207 3,195
Net Interest Income 16,886 13,272 Provision
for loan losses
614 -
Net Interest Income after Provision for Loan Losses
16,272 13,272
Non-interest Income Service charges on deposit accounts
999 923 Wire transfer fees
151 112 Interchange fees
1,102 959 Fiduciary activities
1,297 1,048 Gain on
sale of investment securities (includes $124 and $0 for the three
months ended March 31, 2015 and 2014, respectively, related to
accumulated other comprehensive earnings reclassifications)
124 - Gain on sale of mortgage loans
2,379 1,411
Mortgage servicing income net of impairment
179 207 Increase
in cash value of bank owned life insurance
258 233 Death
benefit on bank owned life insurance
145 - Other income
432 629 Total
non-interest income
7,066
5,522
Non-interest Expense Salaries and employee
benefits
8,504 7,483 Net occupancy expenses
1,551
1,424 Data processing
923 870 Professional fees
527
608 Outside services and consultants
626 661 Loan expense
1,257 1,015 FDIC insurance expense
337 256 Other
losses
(45 ) 38 Other expense
2,388
2,159 Total non-interest expense
16,068 14,514
Income Before Income Tax 7,270 4,280 Income tax
expense (includes $43 and $0 for the three months ended March 31,
2015 and 2014, respectively, related to income tax expense from
reclassification items)
1,912
863
Net Income 5,358 3,417 Preferred
stock dividend
(31 ) (31
)
Net Income Available to Common Shareholders $
5,327 $ 3,386
Basic Earnings
Per Share $ 0.58 $ 0.39
Diluted Earnings Per
Share 0.55 0.38
Horizon BancorpMark E. SecorChief Financial Officer(219)
873-2611Fax: (219) 874-9280
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