(NASDAQ: HBNC) – Horizon Bancorp today announced its unaudited
financial results for the three and six-month periods ended June
30, 2015.
SUMMARY:
- On July 1, 2015, Horizon closed the
acquisition of Peoples Bancorp and its wholly-owned subsidiary,
Peoples Federal Savings Bank of DeKalb County, headquartered in
Auburn, Indiana. Peoples’ results are not included in Horizon’s
June 30, 2015 financial results.
- Total loans increased 16.2% on an
annualized basis during the second quarter of 2015.
- Commercial loans increased 8.2% on an
annualized basis during the second quarter of 2015.
- Second quarter 2015 net income was $4.7
million or $.49 diluted earnings per share.
- Excluding merger expenses, net income
for the second quarter of 2015 was $5.2 million or $.53 diluted
earnings per share.
- Pre-tax, pre-provision income for the
second quarter of 2015 was $8.4 million, an increase of 19.7%
compared to the same period of 2014 and 6.4% compared to the
previous quarter.
- Net income for the first six months of
2015 increased 23.1% compared to the same period of 2014 to $10.1
million or $1.04 diluted earnings per share.
- Excluding merger expenses, gain on sale
of investment securities and the death benefit on bank owned life
insurance, net income for the first six months of 2015 was $10.4
million or $1.08 diluted earnings per share.
- Pre-tax, pre-provision income for the
first six months of 2015 was $16.3 million, an increase of 44.1%
compared to the first six months of 2014.
- Net interest income for the first six
months of 2015 increased 15.6% or $4.7 million compared to the same
period in 2014.
- The net interest margin, excluding the
impact of acquisitions (“core net interest margin”), increased 4
basis points from the linked quarter and 5 basis points in the
first six months of 2015 compared to the same period of 2014.
- Non-interest income for the first six
months of 2015 increased 17.3% or $2.1 million compared to the same
period in 2014.
- Horizon’s tangible book value per share
rose to $17.06 at June 30, 2015, compared to $16.26 at December 31,
2014 and $15.47 at June 30, 2014.
Craig Dwight, Chairman and CEO, commented: “Horizon’s 2015
second quarter and year-to-date results showed our continued
ability to generate organic growth and solid returns across all
four revenue streams - retail banking, business banking, mortgage
banking and wealth management. Previous investments in people,
resources and market expansion, coupled with our strategic
partnership through the Peoples Bancorp acquisition, has created a
strong foundation to continue our successful growth story in the
future.”
Mr. Dwight continued, “Horizon’s net income of $4.7 million for
the second quarter of 2015 was down from $5.4 million in the
previous quarter and $4.8 million in the same period of 2014. An
increase in the provision for loan losses due to a $1.3 million
commercial loan charge-off was the primary reason for this decline.
However, pre-tax, pre-provision income for the second quarter of
2015 increased 19.7% from the same period in 2014 and 6.4% from the
previous quarter. This increase in pre-tax, pre-provision income
demonstrates the earnings power garnered from our organic and
strategic growth strategy.”
Non-GAAP Reconciliation of Net Income and Diluted
Earnings per Share (Dollar in Thousands Except per Share Data,
Unaudited)
Three Months Ended
Six Months Ended June 30 June 30
Non-GAAP
Reconciliation of Net Income
2015 2014 2015
2014 Net income as reported
$ 4,728 $ 4,778
$ 10,086 $ 8,195 Merger expenses
570 900
716 1,211 Tax effect
(132 )
(315 )
(183 ) (424
) Net income excluding merger expenses
5,166 5,363
10,619 8,982 Gain on sale of investment securities
- -
(124 ) - Tax effect
-
-
43
- Net income excluding gain on sale of investment securities
5,166 5,363
10,538 8,982 Death benefit on bank
owned life insurance ("BOLI")
- -
(145 ) - Tax
effect
- -
51 - Net income excluding death
benefit on BOLI
5,166 5,363
10,444 8,982
Acquisition-related purchase accounting adjustments ("PAUs")
(797 ) (1,199 )
(1,880 ) (1,588 ) Tax
effect
279 420
658 556 Net income
excluding PAUs
$ 4,648 $ 4,584
$ 9,222 $ 7,950
Non-GAAP
Reconciliation of Diluted Earnings per Share
Diluted earnings per share as reported
$ 0.49 $ 0.50
$ 1.04 $ 0.88 Merger expenses
0.06 0.09
0.07 0.13 Tax effect
(0.01 )
(0.03 )
(0.02 )
(0.05 ) Diluted earnings per share excluding merger expenses
0.53 0.56
1.10 0.96 Gain on sale of investment
securities
- -
(0.01 ) - Tax effect
- -
0.00
- Net income excluding gain on sale of
investment securities
0.53 0.56
1.09 0.96
Death benefit on BOLI
- -
(0.02 ) - Tax effect
- -
0.01 - Net income excluding
death benefit on BOLI
0.53 0.56
1.08 0.96
Acquisition-related PAUs
(0.08 ) (0.13 )
(0.20
) (0.17 ) Tax effect
0.03
0.04
0.07 0.06
Diluted earnings per share excluding PAUs
$
0.48 $ 0.48
$ 0.95
$ 0.85
Non-GAAP Reconciliation of
Pre-tax, Pre-Provision Income (Dollar in Thousands, Unaudited)
Three Months Ended Six
Months Ended June 30 March 31 June 30
June 30 2015 2015 2014
2015 2014 Net income as reported
$ 4,728 $ 5,358 $ 4,778
$ 10,086 $
8,195 Income tax expense
1,752 1,912 1,890
3,664
2,753 Provision for loan losses
1,906
614 339
2,520 339
Pre-tax, pre-provision income
$ 8,386 $ 7,884
$ 7,007
$ 16,270 $ 11,287
Loan Growth by Type Three Months Ended June 30, 2015
(Dollars in Thousands, Unaudited)
Annualized June 30 March 31
Amount Percent Percent 2015
2015 Change Change
Change Commercial loans
$ 709,946 $ 695,736 $
14,210 2.0% 8.2% Residential mortgage loans
277,407 260,390
17,017 6.5% 26.2% Consumer loans
336,006 326,334 9,672 3.0%
11.9% Held for sale loans
7,677 6,229
1,448 23.2% 93.2% Subtotal
1,331,036 1,288,689
42,347 3.3% 13.2% Mortgage warehouse loans
195,924
178,899 17,025 9.5% 38.2% Total loans
$ 1,526,960 $ 1,467,588 $ 59,372 4.0%
16.2%
Loan Growth by Type Six Months Ended June
30, 2015 (Dollars in Thousands)
Annualized June
30 December 31 Amount Percent
Percent 2015 2014 Change
Change Change (Unaudited)
Commercial loans
$ 709,946 $ 674,314 $ 35,632 5.3% 10.7% Residential
mortgage loans
277,407 254,625 22,782 8.9% 18.0% Consumer
loans
336,006 320,459 15,547 4.9% 9.8% Held for sale loans
7,677 6,143 1,534 25.0%
50.4% Subtotal
1,331,036 1,255,541 75,495 6.0% 12.1%
Mortgage warehouse loans
195,924
129,156 66,768 51.7% 104.2% Total loans
$
1,526,960 $ 1,384,697 $ 142,263 10.3% 20.7%
“Once again, our continued loan growth in the second quarter was
critical in combatting persistent margin pressure,” Mr. Dwight
commented. “Horizon’s core net interest margin, excluding income
from acquisition-related purchase accounting adjustments, increased
4 basis points from the linked quarter and 5 basis points in the
first six months of 2015 compared to the same period of 2014.”
Non-GAAP Reconciliation of Net Interest Margin
(Dollar Amounts in Thousands, Unaudited)
Three
Months Ended Six Months Ended June 30
March 31 June 30 June 30
Net Interest
Margin As Reported
2015 2015 2014
2015 2014 Net interest income
$
17,850 $ 16,886 $ 16,788
$ 34,736 $
30,060 Average interest-earning assets
2,008,191 1,899,870
1,832,576
1,954,287 1,715,939 Net interest income as a
percent of average interest- earning assets ("Net Interest Margin")
3.67 % 3.70 % 3.78 %
3.68 % 3.62 %
Impact of
Acquisitions
Interest income from acquisition-related PAUs
$ (797
) $ (1,083 ) $ (1,199 )
$ (1,880 ) $
(1,588 )
Excluding Impact
of Acquisitions
Net interest income
$ 17,053 $ 15,803 $ 15,589
$ 32,856 $ 28,472 Average interest-earning assets
2,008,191 1,899,870 1,832,576
1,954,287 1,715,939
Core Net Interest Margin
3.51 % 3.47 % 3.51 %
3.49 % 3.44 %
With respect to the increase in the provision for loan losses
for the three and six-month periods ending June 30, 2015 compared
to the same periods of the previous year, Mr. Dwight stated, “This
increase reflects loan growth as well as a $1.3 million commercial
loan charge-off during the second quarter related to a legacy
workout credit which recently became impaired. Non-performing loans
increased $609,000 compared to December 31, 2014; however,
non-performing loans to total loans was down 11 basis points to
1.51% as of June 30, 2015. The increase in non-performing loans
reflects our continued loan growth as credit conditions remain
stable across the portfolio.”
Horizon’s loan loss reserve ratio, excluding loans with
credit-related purchase accounting adjustments, was 1.15% as of
June 30, 2015.
Allowance for Loan and Lease Loss Detail As of
June 30, 2015 (Dollars in Thousands, Unaudited)
Horizon Legacy Heartland
Summit Total Pre-discount loan balance
$ 1,403,809 $ 31,777 $ 88,908 $ 1,524,494 Allowance for loan
losses (ALLL) 16,138 276 7 16,421 Loan discount N/A
1,903 3,308 5,211 ALLL+loan
discount 16,138 2,179 3,315 21,632
Loans, net $ 1,387,671 $ 29,598
$ 85,593 $ 1,502,862 ALLL/ pre-discount loan balance
1.15% 0.87% 0.01% 1.08% Loan discount/ pre-discount loan balance
N/A 5.99% 3.72% 0.34% ALLL+loan discount/ pre-discount loan balance
1.15% 6.86% 3.73% 1.42%
On July 1, 2015, Horizon completed its acquisition of Peoples
Bancorp and its wholly-owned subsidiary, Peoples Federal Savings
Bank of DeKalb County (collectively, “Peoples”). Dwight noted,
“Peoples fits well into Horizon’s strategic plan to expand in the
states of Indiana and Michigan by expanding our footprint further
into northeast Indiana and southwest Michigan. The integration
process is well under way, and we are thrilled to have this
talented and dedicated group of individuals join our growing
organization. We look forward to bringing the Peoples’ customer
base an expanded product and service suite with a continued focus
on community banking and participation.”
Income Statement Highlights
Net income for the second quarter of 2015 was $4.7 million or
$.49 diluted earnings per share compared to $4.8 million or $.50
diluted earnings per share in the second quarter of 2014. The
decrease in net income and earnings per share from the previous
year reflects an increase in the provision for loan losses of $1.6
million primarily due to one commercial loan charge-off of $1.3
million, and an increase in non-interest expenses of $242,000
primarily due to an increase in salaries and employee benefits,
professional fees and loan expense. Excluding acquisition-related
expenses and purchase accounting adjustments, net income for the
second quarter of 2015 was $4.6 million or $.48 diluted earnings
per share compared to $4.6 million or $.48 diluted earnings per
share in the second quarter of 2014.
Net income for the six months ended June 30, 2015 was $10.1
million or $1.04 diluted earnings per share compared to $8.2
million or $.88 diluted earnings per share for the six months ended
June 30, 2014. The increase in net income from the previous year
reflects an increase in net interest income of $4.7 million or
15.6% and an increase in non-interest income of $2.1 million or
17.3%, partially offset by an increase in provision for loan losses
of $2.2 million, an increase in non-interest expenses of $1.8
million and an increase in income tax expense of $911,000.
Excluding acquisition-related expenses and purchase accounting
adjustments, gain on sale of investment securities and the death
benefit on bank owned life insurance, net income for the first six
months of 2015 was $9.2 million or $.95 diluted earnings per share
compared to $8.0 million or $.85 diluted earnings per share in the
same period of 2014.
Horizon’s net interest margin was 3.67% during the second
quarter of 2015, down from 3.70% for the prior quarter and 3.78%
for same period of 2014. The decrease in net interest margin
compared to the prior quarter and the same period of 2014 was due
to lower yields on new loans and re-pricing earning assets and a
decrease in interest income from acquisition-related purchase
accounting adjustments. Excluding purchase accounting adjustments
related to the 2012 Heartland Bancshares, Inc. and the 2014 SCB
Bancorp, Inc. acquisitions, the margin would have been 3.51% for
the second quarter of 2015 compared to 3.47% for the prior quarter
and 3.51% for the same period of 2014. Interest income from
acquisition-related purchase accounting adjustments was $797,000,
$1.1 million, and $1.2 million for the three months ended June 30,
2015, March 31, 2015 and June 30, 2014, respectively.
Horizon’s net interest margin was 3.68% for the six months
ending June 30, 2015, up from 3.62% for same period of 2014.
Excluding interest income from acquisition-related purchase
accounting adjustments, the margin would have been 3.49% for the
six months ending June 30, 2015 compared to 3.44% for same period
of 2014. Interest income from acquisition-related purchase
accounting adjustments was $1.9 million and $1.6 million for the
six months ended June 30, 2015 and June 30, 2014, respectively.
Residential mortgage lending activity during the second quarter
of 2015 generated $2.6 million in income from the gain on sale of
mortgage loans, an increase of $105,000 from the same period of
2014. Total origination volume in the second quarter of 2015,
including loans placed into portfolio, totaled $114.4 million,
representing an increase of 38.8% from the same period of 2014 of
$82.4 million. Purchase money mortgage originations during the
second quarter of 2015 represented 71.8% of total originations
compared to 50.2% of originations during the previous quarter and
77.5% during the second quarter of 2014.
Lending Activity
Total loans increased $142.3 million from $1.4 billion as of
December 31, 2014 to $1.5 billion as of June 30, 2015 as mortgage
warehouse loans increased by $66.8 million, residential mortgage
loans increased by $22.8 million and consumer loans increased by
$15.5 million. Commercial loans increased $35.6 million or 10.7% on
an annualized basis from $674.3 million at December 31, 2014 to
$709.9 million at June 30, 2015.
Total loan balances in the Kalamazoo and Indianapolis markets
continued to grow during the second quarter of 2015 to $154.4
million and $145.4 million, respectively, as of June 30, 2015.
Kalamazoo’s aggregate loan balances increased $8.6 million or 5.9%,
and Indianapolis’ aggregate loan balances increased $12.6 million
or 9.4%. Combined, these markets contributed $21.2 million in loan
growth during the second quarter of 2015 or 7.6%.
The provision for loan losses was $1.9 million for the second
quarter and $2.5 million for the first six months of 2015, which
was $1.6 million and $2.2 million higher than the provision for the
second quarter and first six months of 2014, respectively. The
higher provision for loan losses in the second quarter and for the
first six months of 2015 compared to the same periods of 2014 was
due to the charge-off of one commercial credit of $1.3 million as
well as continued loan growth. The $1.3 million commercial
charge-off was a legacy workout loan that was recently determined
to be impaired due to the borrower’s inability to make payments and
a decrease in collateral value.
The ratio of the allowance for loan losses to total loans
decreased to 1.08% as of June 30, 2015 from 1.19% as of December
31, 2014 due to an increase in total loans and a decrease in the
allowance for loan losses from $16.5 million as of December 31,
2014 to $16.4 million as of June 30, 2015. The ratio of the
allowance for loan losses to total loans, excluding loans with
credit-related purchase accounting adjustments, was 1.15% as of
June 30, 2015.
Non-performing loans totaled $23.1 million as of June 30, 2015
and $22.4 million as of December 31, 2014. Compared to December 31,
2014, non-performing commercial loans increased by $1.5 million and
non-performing real estate and consumer loans decreased by $75,000
and $845,000, respectively. As a percentage of total loans,
non-performing loans were 1.51% at June 30, 2015, down 11 basis
points from 1.62% at December 31, 2014.
Expense Management
Total non-interest expense was $242,000 higher in the second
quarter of 2015 compared to the same period of 2014. The increase
was primarily due to an increase in salaries and employee benefits,
professional fees and loan expense related to overall company
growth.
Total non-interest expense was $1.8 million higher in the first
six months of 2015 compared to the same period of 2014. The
increase in non-interest expense was primarily related to an
increase in salaries and employee benefits costs of $1.1 million
and net occupancy expenses of $142,000 due to overall company
growth as well as the Summit acquisition. The increase was also due
to an increase in professional fees, loan expense, FDIC insurance
expense and other expense due to overall company growth. The
increase was partially offset by a decrease in outside services and
consultants of $415,000 due to the expense associated with the
Summit acquisition in the second quarter of 2014.
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) June 30 March
31 December 31 September 30
June 30 2015 2015 2014
2014 2014 Balance sheet: Total
assets $ 2,219,307 $ 2,153,965 $ 2,076,922 $ 2,037,045 $ 2,073,251
Investment securities 493,631 495,315 489,531 495,941 537,618
Commercial loans 709,946 695,736 674,314 677,349 648,202 Mortgage
warehouse loans 195,924 178,899 129,156 105,133 140,896 Residential
mortgage loans 277,407 260,390 254,625 251,739 235,523 Consumer
loans 336,006 326,334 320,459 308,800 296,873 Earning assets
2,031,671 1,974,251 1,885,576 1,860,041 1,882,724 Non-interest
bearing deposit accounts 307,215 285,181 267,667 278,527 270,023
Interest bearing transaction accounts 983,912 905,216 930,582
881,299 919,024 Time deposits 293,596 274,699 284,070 289,837
310,056 Borrowings 385,236 440,415 351,198 350,113 340,201
Subordinated debentures 32,719 32,680 32,642 32,603 32,564 Common
stockholders' equity 189,631 186,991 181,914 177,280 174,836 Total
stockholders’ equity 202,131 199,491 194,414 189,780 187,336
Income statement: Three months ended Net interest
income $ 17,850 $ 16,886 $ 16,523 $ 16,400 $ 16,788 Provision for
loan losses 1,906 614 978 1,741 339 Non-interest income 7,186 7,066
6,738 7,390 6,627 Non-interest expenses 16,650 16,068 15,671 15,353
16,408 Income tax expense 1,752 1,912
1,664 1,738
1,890 Net income 4,728 5,358 4,948 4,958 4,778
Preferred stock dividend (31 ) (31 )
(31 ) (40 ) (32 ) Net income
available to common shareholders $ 4,697 $ 5,327
$ 4,917 $ 4,918 $ 4,746
Per share data: Basic earnings per share $
0.51 $ 0.58 $ 0.53 $ 0.53 $ 0.52 Diluted earnings per share 0.49
0.55 0.51 0.51 0.50 Cash dividends declared per common share 0.14
0.14 0.14 0.13 0.13 Book value per common share 20.49 20.25 19.75
19.25 19.00 Tangible book value per common share 17.06 16.80 16.26
15.75 15.47 Market value - high 26.03 25.86 26.73 23.67 22.58
Market value - low $ 22.85 $ 22.38 $ 22.83 $ 20.65 $ 19.57 Weighted
average shares outstanding - Basic 9,240,005 9,216,011 9,212,156
9,208,707 9,182,986 Weighted average shares outstanding - Diluted
9,637,586 9,609,506 9,628,240 9,588,332 9,560,939
Key
ratios: Return on average assets 0.87 % 1.05 % 0.96 % 0.96 %
0.97 % Return on average common stockholders' equity 9.88 11.66
10.72 10.95 11.82 Net interest margin 3.67 3.70 3.64 3.59 3.78 Loan
loss reserve to total loans 1.08 1.13 1.19 1.20 1.18 Non-performing
loans to loans 1.51 1.52 1.62 1.47 1.41 Average equity to average
assets 9.32 9.56 9.56 9.33 8.79 Bank only capital ratios: Tier 1
capital to average assets 8.18 8.75 8.80 8.63 8.78 Tier 1 capital
to risk weighted assets 11.04 11.47 11.96 12.13 11.47 Total capital
to risk weighted assets 12.08 12.54 13.08 13.26 12.53
Loan data: Substandard loans $ 28,220 $ 27,355 $ 27,661 $
35,023 $ 35,495 30 to 89 days delinquent 3,326 3,945 5,082 3,310
3,671 90 days and greater delinquent - accruing interest $
207 $ 19 $ 115 $ 62 $ 42 Trouble debt restructures - accruing
interest 3,271 4,368 4,372 5,838 5,614 Trouble debt restructures -
non-accrual 4,523 4,711 2,643 3,061 3,178 Non-accrual loans
15,050 13,282 15,312
10,828 9,844 Total
non-performing loans $ 23,051 $ 22,380
$ 22,442 $ 19,789 $ 18,678
HORIZON BANCORP Financial Highlights
(Dollars in thousands except share and per share data and
ratios, Unaudited) June 30 June
30 2015 2014 Balance sheet: Total
assets $ 2,219,307 $ 2,073,251 Investment securities 493,631
537,618 Commercial loans 709,946 648,202 Mortgage warehouse loans
195,924 140,896 Residential mortgage loans 277,407 235,523 Consumer
loans 336,006 296,873 Earning assets 2,031,671 1,882,724
Non-interest bearing deposit accounts 307,215 270,023 Interest
bearing transaction accounts 983,912 919,024 Time deposits 293,596
310,056 Borrowings 385,236 340,201 Subordinated debentures 32,719
32,564 Common stockholders' equity 189,631 174,836 Total
stockholders’ equity 202,131 187,336
Income
statement: Six Months Ended Net interest income $ 34,736
$ 30,060 Provision for loan losses 2,520 339 Non-interest income
14,252 12,149 Non-interest expenses 32,718 30,922 Income tax
expense 3,664 2,753 Net income
10,086 8,195 Preferred stock dividend (63 )
(63 ) Net income available to common shareholders $ 10,023
$ 8,132
Per share data: Basic earnings
per share $ 1.09 $ 0.91 Diluted earnings per share 1.04 0.88 Cash
dividends declared per common share 0.28 0.24 Book value per common
share 20.49 19.00 Tangible book value per common share 17.06 15.47
Market value - high 26.14 24.91 Market value - low $ 22.38 $ 19.57
Weighted average shares outstanding - Basic 9,228,075 8,908,492
Weighted average shares outstanding - Diluted 9,615,551 9,293,423
Key ratios: Return on average assets 0.96 % 0.89 %
Return on average common stockholders' equity 10.73 10.40 Net
interest margin 3.68 3.62 Loan loss reserve to total loans 1.08
1.18 Non-performing loans to loans 1.51 1.41 Average equity to
average assets 9.45 9.20 Bank only capital ratios: Tier 1 capital
to average assets 8.18 8.82 Tier 1 capital to risk weighted assets
11.04 11.48 Total capital to risk weighted assets 12.08 12.54
Loan data: Substandard loans $ 28,220 $ 35,495 30 to
89 days delinquent 3,326 3,671 90 days and greater
delinquent - accruing interest $ 207 $ 42 Trouble debt restructures
- accruing interest 3,271 5,614 Trouble debt restructures -
non-accrual 4,523 3,178 Non-accrual loans 15,050
9,844 Total non-performing loans $ 23,051
$ 18,678
HORIZON BANCORP
Allocation of the Allowance for Loan and Lease Losses
(Dollars in Thousands, Unaudited)
June 30 March 31
December 31 September 30 June 30 2015
2015 2014 2014
2014 Commercial
$ 8,386 $ 7,876 $ 7,910 $
7,515 $ 6,958 Real estate
3,044 3,281 2,508 3,304 2,367
Mortgage warehousing
1,319 1,272 1,132 1,300 1,559 Consumer
3,672 4,205 4,951
4,041 4,776 Total
$ 16,421
$ 16,634 $ 16,501 $ 16,160 $ 15,660
Net Charge-offs (Recoveries)
(Dollars in Thousands, Unaudited)
Three months ended June 30 March 31
December 31 September 30 June 30 2015
2015 2014 2014
2014 Commercial
$ 1,584 $ (11) $ 199 $ 1,006 $
185 Real estate
160 20 101 19 169 Mortgage warehousing
- - - - - Consumer
375 472
336 217 426 Total
$ 2,119 $ 481 $ 636 $ 1,242
$ 780
Total Non-performing Loans
(Dollars in Thousands, Unaudited)
June 30 March 31 December 31
September 30 June 30 2015 2015
2014 2014 2014 Commercial
$ 13,384 $ 11,540 $ 11,855 $ 9,323 $ 8,243 Real
estate
5,819 6,062 5,894 6,312 6,672 Mortgage warehousing
- - - - - Consumer
3,848 4,778
4,693 4,154 3,763 Total
$ 23,051 $ 22,380 $ 22,442 $
19,789 $ 18,678
Other Real Estate Owned and Repossessed
Assets
(Dollars in Thousands, Unaudited)
June 30 March 31 December 31
September 30 June 30 2015 2015
2014 2014 2014 Commercial
$ 376 $ 307 $ 411 $ 376 $ 452 Real estate
58
219 636 875 752 Mortgage warehousing
- - - - - Consumer
37 223 154
3 23 Total
$ 471 $ 749 $
1,201 $ 1,254 $ 1,227
HORIZON BANCORP AND
SUBSIDIARIES Average Balance Sheets
(Dollar Amounts in Thousands,
Unaudited)
Three Months Ended Three
Months Ended June 30, 2015 June 30, 2014
Average Average Average
Average Balance Interest
Rate Balance Interest
Rate ASSETS Interest-earning assets Federal
funds sold $ 3,597 $ 2 0.22 % $ 9,062 $ 5 0.22 % Interest-earning
deposits 8,608 5 0.23 % 7,987 4 0.20 % Investment securities -
taxable 363,919 2,060 2.27 % 403,910 2,386 2.37 % Investment
securities - non-taxable (1) 141,784 1,079 4.24 % 145,591 1,096
4.25 % Loans receivable (2)(3) 1,490,283
17,981 4.87 % 1,266,026 16,631
5.27 % Total interest-earning assets (1) 2,008,191 21,127 4.33 %
1,832,576 20,122 4.51 % Non-interest-earning assets Cash and
due from banks 31,783 28,106 Allowance for loan losses (16,756 )
(15,808 ) Other assets 157,795 129,608
$ 2,181,013 $ 1,974,482
LIABILITIES
AND SHAREHOLDERS' EQUITY Interest-bearing liabilities
Interest-bearing deposits $ 1,255,123 $ 1,237 0.40 % $ 1,229,025 $
1,355 0.44 % Borrowings 381,782 1,539 1.62 % 273,968 1,478 2.16 %
Subordinated debentures 32,699 501 6.15
% 32,541 501 6.18 % Total
interest-bearing liabilities 1,669,604 3,277 0.79 % 1,535,534 3,334
0.87 % Non-interest-bearing liabilities Demand deposits
294,425 253,093 Accrued interest payable and other liabilities
13,770 12,245 Shareholders' equity 203,214
173,610 $ 2,181,013 $ 1,974,482
Net interest income/spread $ 17,850 3.54 % $ 16,788 3.63 %
Net interest income as a percent of average interest earning assets
(1) 3.67 % 3.78 % (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 Average Balance
Sheets
(Dollar Amounts in Thousands,
Unaudited)
Six Months Ended Six Months
Ended June 30, 2015 June 30, 2014 Average
Average Average
Average Balance Interest
Rate Balance Interest
Rate ASSETS Interest-earning assets Federal funds
sold $ 4,198 $ 11 0.53 % $ 7,842 $ 9 0.23 % Interest-earning
deposits 9,684 10 0.21 % 6,855 7 0.21 % Investment securities -
taxable 362,250 4,200 2.34 % 395,406 4,769 2.43 % Investment
securities - non-taxable (1) 141,269 2,156 4.27 % 146,709 2,219
4.07 % Loans receivable (2)(3) 1,436,886
34,843 4.90 % 1,159,127 29,585
5.15 % Total interest-earning assets (1) 1,954,287 41,220 4.35 %
1,715,939 36,589 4.39 % Non-interest-earning assets Cash and
due from banks 30,396 26,507 Allowance for loan losses (16,623 )
(15,987 ) Other assets 157,669 133,408
$ 2,125,729 $ 1,859,867
LIABILITIES
AND SHAREHOLDERS' EQUITY Interest-bearing liabilities
Interest-bearing deposits $ 1,235,601 $ 2,469 0.40 % $ 1,154,682 $
2,632 0.46 % Borrowings 359,436 3,018 1.69 % 250,761 2,900 2.33 %
Subordinated debentures 32,678 997 6.15
% 32,522 997 6.18 % Total
interest-bearing liabilities 1,627,715 6,484 0.80 % 1,437,965 6,529
0.92 % Non-interest-bearing liabilities Demand deposits
282,796 238,579 Accrued interest payable and other liabilities
14,374 12,191 Shareholders' equity 200,844
171,132 $ 2,125,729 $ 1,859,867
Net interest income/spread $ 34,736 3.55 % $ 30,060 3.47 %
Net interest income as a percent of average interest earning assets
(1) 3.68 % 3.62 % (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)
June 30 December 31 2015
2014 (Unaudited) Assets
Cash and due from banks
$ 43,857 $ 43,476 Investment
securities, available for sale
330,970 323,764 Investment
securities, held to maturity (fair value of $167,581 and $169,904)
162,661 165,767 Loans held for sale
7,677 6,143
Loans, net of allowance for loan losses of $16,421 and $16,501
1,502,862 1,362,053 Premises and equipment, net
54,778 52,461 Federal Reserve and Federal Home Loan Bank
stock
11,080 11,348 Goodwill
28,176 28,176 Other
intangible assets
3,531 3,965 Interest receivable
8,823 8,246 Cash value of life insurance
39,897
39,382 Other assets
24,995 32,141 Total
assets
$ 2,219,307 $ 2,076,922
Liabilities Deposits Non-interest bearing
$
307,215 $ 267,667 Interest bearing
1,277,508
1,214,652 Total deposits
1,584,723 1,482,319
Borrowings
385,236 351,198 Subordinated debentures
32,719 32,642 Interest payable
461 497 Other
liabilities
14,037 15,852 Total
liabilities
2,017,176 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, 9,313,779 and 9,278,916 shares
Outstanding, 9,256,026 and 9,213,036 shares
- - Additional
paid-in capital
46,622 45,916 Retained earnings
141,889 134,477 Accumulated other comprehensive income
1,120 1,521 Total stockholders’ equity
202,131 194,414 Total liabilities and
stockholders’ equity
$ 2,219,307 $ 2,076,922
HORIZON BANCORP AND SUBSIDIARIES Condensed
Consolidated Statements of Income
(Dollar Amounts in Thousands, Except Per
Share Data, Unaudited)
Three Months Ended Six Months
Ended June 30 June 30 2015
2014 2015 2014 Interest
Income Loans receivable
$ 17,981 $
16,631
$ 34,843 $ 29,585 Investment securities
Taxable
2,067 2,395
4,221 4,785 Tax exempt
1,079 1,096
2,156 2,219 Total interest
income
21,127 20,122
41,220 36,589
Interest Expense Deposits
1,237 1,355
2,469
2,632 Borrowed funds
1,539 1,478
3,018 2,900
Subordinated debentures
501 501
997 997
Total interest expense
3,277
3,334
6,484 6,529
Net Interest Income 17,850 16,788
34,736 30,060 Provision for loan losses
1,906
339
2,520
339
Net Interest Income after Provision for
Loan Losses 15,944 16,449
32,216 29,721
Non-interest Income Service charges on deposit
accounts
1,085 1,038
2,084 1,961 Wire transfer fees
182 145
333 257 Interchange fees
1,366 1,254
2,468 2,213 Fiduciary activities
1,216 1,199
2,513 2,247 Gain on sale of investment securities (includes
$0 for the three months
ended and $124 for the six months ended
June 30, 2015 and $0
for the three and six months ended June 30, 2014, related to
accumulated other comprehensive earnings reclassifications)
- -
124 - Gain on sale of mortgage loans
2,642
2,537
5,021 3,948 Mortgage servicing income net of
impairment
300 233
479 440 Increase in cash value of
bank owned life insurance
257 252
515 485 Death
benefit on bank owned life insurance
- -
145 - Other
income
138 (31 )
570 598 Total non-interest
income
7,186 6,627
14,252 12,149
Non-interest Expense Salaries and employee benefits
8,385 8,293
16,889 15,776 Net occupancy expenses
1,375 1,360
2,926 2,784 Data processing
966
937
1,889 1,807 Professional fees
660 419
1,187 1,027 Outside services and consultants
918
1,298
1,544 1,959 Loan expense
1,367 1,272
2,624 2,287 FDIC insurance expense
339 285
676
541 Other losses
150 95
105 133 Other expense
2,490 2,449
4,878 4,608 Total non-interest
expense
16,650 16,408
32,718 30,922
Income Before Income Tax 6,480 6,668
13,750
10,948 Income tax expense (includes $0 for the three months ended
and $43 for the six months ended June 30, 2015 and $0 for the three
and six months ended June 30, 2014, related to income tax expense
from reclassification items)
1,752
1,890
3,664
2,753
Net Income 4,728 4,778
10,086
8,195 Preferred stock dividend
(31 )
(32 )
(63 ) (63 )
Net Income Available to Common Shareholders $
4,697 $ 4,746
$
10,023 $ 8,132
Basic Earnings Per
Share $ 0.51 $ 0.52
$ 1.09 $ 0.91
Diluted Earnings Per Share 0.49 0.50
1.04 0.88
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150723006474/en/
Horizon BancorpMark E. SecorChief Financial Officer(219)
873-2611Fax: (219) 874-9280
Horizon Bancorp (NASDAQ:HBNC)
Historical Stock Chart
From Feb 2024 to Mar 2024
Horizon Bancorp (NASDAQ:HBNC)
Historical Stock Chart
From Mar 2023 to Mar 2024