(NASDAQ: HBNC) – Horizon Bancorp today announced its unaudited
financial results for the three-month period ended March 31,
2016.
SUMMARY:
- Net income for the first quarter of
2016 was $5.4 million or $.44 diluted earnings per share compared
to $5.4 million or $.55 diluted earnings per share in the same
period of 2015.
- Excluding merger expenses, gain on sale
of investment securities, the death benefit on bank owned life
insurance and acquisition-related purchase accounting adjustments,
net income for the first quarter of 2016 increased 18.7% compared
to the same period of 2015 to $5.4 million or $.45 diluted earnings
per share.
- Net interest income for the first
quarter of 2016 increased $2.9 million or 17.1% compared to the
same period in 2015.
- Non-interest income for the first
quarter of 2016 increased $798,000 or 11.3% compared to the same
period in 2015.
- Net interest margin, excluding the
impact of acquisitions (“core net interest margin”), was 3.36% for
the first quarter of 2016 compared to 3.38% in the prior quarter
and 3.47% for the same period in 2015.
- Non-performing loans to total loans was
.87% as of March 31, 2016 compared to .95% as of December 31, 2015
and 1.52% as of March 31, 2015.
- Horizon’s tangible book value per share
rose to $17.08 at March 31, 2016, compared to $16.53 at December
31, 2015 and $16.80 at March 31, 2015.
- On February 5, 2016, Horizon announced
the pending acquisition of Kosciusko Financial, Inc. (“Kosciusko”)
and its wholly-owned subsidiary, Farmers State Bank, headquartered
in Mentone, Indiana.
- On March 10, 2016, Horizon announced
the pending acquisition of LaPorte Bancorp, Inc. (“LaPorte
Bancorp”) and its wholly-owned subsidiary, The LaPorte Savings
Bank, headquartered in La Porte, Indiana.
- Horizon paid off the $12.5 million in
funds received through the Small Business Lending Fund with cash
from the holding company on February 1, 2016.
- Horizon Bank’s capital ratios,
including Tier 1 Capital to Average Assets of 9.03% and Total
Capital to Risk Weighted Assets of 13.31% as of March 31, 2016,
continue to be well above the regulatory standards for
well-capitalized banks.
Craig Dwight, Chairman and CEO, commented: “Horizon made
significant progress building for the future in the first quarter
of 2016 with the announcement of two acquisitions and by adding
employee talent in key growth markets. We believe Horizon is well
positioned to take advantage of the growth opportunities in the
States of Indiana and Michigan and to successfully integrate our
pending acquisitions.”
Dwight continued, “Excluding non-core items, Horizon realized a
healthy increase of 18.7% in net income during the first quarter of
2016 compared to the same period of 2015. In addition, Horizon
achieved an 11.3% increase in non-interest income, driven by
increases in service charges, interchange fees and fiduciary
activities. These revenue streams are sustainable drivers of fee
income growth and help combat margin pressure and market-driven
mortgage revenue volatility. Excluding mortgage-related fee income
and non-core items, Horizon’s non-interest income increased 27.7%
in the first quarter of 2016 compared to the same period of
2015.”
Non-GAAP Reconciliation of Net Income and Diluted
Earnings per Share (Dollar in Thousands Except per Share Data,
Unaudited)
Three Months Ended
March 31
Non-GAAP
Reconciliation of Net Income
2016 2015 Net income as reported
$ 5,381 $ 5,358 Merger expenses
639 146 Tax
effect
(165 ) (51 ) Net
income excluding merger expenses
5,855 5,453 Gain on
sale of investment securities
(108 ) (124 ) Tax
effect
38 43 Net
income excluding gain on sale of investment securities
5,785
5,372 Death benefit on bank owned life insurance ("BOLI")
- (145 ) Tax effect
-
51 Net income excluding death benefit on BOLI
5,785 5,278 Acquisition-related purchase accounting
adjustments ("PAUs")
(547 ) (1,083 ) Tax effect
191 379 Net income
excluding PAUs
$ 5,429 $ 4,574
Non-GAAP
Reconciliation of Diluted Earnings per Share
Diluted earnings per share as reported
$ 0.44 $ 0.55
Merger expenses
0.05 0.02 Tax effect
(0.01
) (0.01 ) Diluted earnings per share
excluding merger expenses
0.48 0.56 Gain on sale of
investment securities
(0.01 ) (0.01 ) Tax effect
0.00 0.00 Net
income excluding gain on sale of investment securities
0.48
0.55 Death benefit on BOLI
- (0.02 ) Tax effect
- 0.01 Net income
excluding death benefit on BOLI
0.48 0.54
Acquisition-related PAUs
(0.05 ) (0.11 ) Tax effect
0.02 0.04 Diluted
earnings per share excluding PAUs
$ 0.45
$ 0.47
Dwight continued, “Loan volume in the first quarter did not meet
our expectations and resulted in a decrease in total loans from the
prior quarter. The decrease was primarily attributed to three large
commercial loan payoffs, seasonal pay downs on agricultural lines
of credit, annual agricultural term loan payments and lower
mortgage warehouse volume. The commercial payoffs were due to two
multi-family real estate loans that were encouraged to refinance
elsewhere and one non-owner occupied real estate loan that was
refinanced by another institution. The decrease in mortgage
warehouse loans was due to seasonality and changes in mortgage
compliance that slowed production volume during the quarter. We
remain optimistic about future loan growth given the strong
commercial loan pipeline and investments in additional lenders. In
addition, it is anticipated that mortgage warehouse lending will
rebound in the second quarter due to seasonal factors and the
slower pace of expected interest rate increases.”
The following table presents the amount and growth rate of loans
by product type for the three months ended March 31, 2016.
Loan Growth by Type Three Months Ended March 31,
2016 (Dollars in Thousands)
Annualized March
31 December 31 Amount Percent
Percent 2016 2015
Change Change
Change (Unaudited)
Commercial loans
$ 797,754 $ 804,995 $ (7,241 ) -0.9 % -3.6 %
Residential mortgage loans
442,806 437,144 5,662 1.3 % 5.2 %
Consumer loans
359,636 362,300
(2,664 ) -0.7 % -3.0 % Subtotal
1,600,196 1,604,439 (4,243 ) -0.3 % -1.1 % Held for sale
loans
3,168 7,917 (4,749 ) -60.0 % -241.3 % Mortgage
warehouse loans
119,876 144,692
(24,816 ) -17.2 % -69.0 % Total loans
$
1,723,240 $ 1,757,048 $ (33,808
) -1.9 % -7.7 %
Horizon’s core net interest margin decreased from 3.38% in the
fourth quarter of 2015 and 3.47% in the first quarter of 2015 to
3.36% for the three months ended March 31, 2016. The reduction from
year-end is a result of lower growth in higher yielding assets and
a continuation of repricing of loans in general.
Non-GAAP Reconciliation of Net Interest Margin
(Dollar in Thousands)
Three Months Ended
March 31 December 31
March 31
Net Interest
Margin As Reported
2016 2015 2015
(Unaudited) (Unaudited) Net
interest income
$ 19,774 $ 20,222 $ 16,886 Average
interest-earning assets
2,367,250 2,369,301 1,899,870 Net
interest income as a percent of average interest- earning assets
("Net Interest Margin")
3.45 % 3.50 % 3.70 %
Impact of
Acquisitions
Interest income from acquisition-related purchase accounting
adjustments
$ (547 ) $ (695 ) $ (1,083 )
Excluding Impact
of Acquisitions
Net interest income
$ 19,227 $ 19,527 $ 15,803
Average interest-earning assets
2,367,250 2,369,301
1,899,870 Core Net Interest Margin
3.36 % 3.38 % 3.47
%
Horizon’s loan loss reserve ratio, excluding loans with
credit-related purchase accounting adjustments, stood at .98% as of
March 31, 2016.
Non- GAAP Allowance for Loan and Lease Loss Detail
As of March 31, 2016 (Dollars in Thousands, Unaudited)
Horizon Legacy Heartland
Summit Peoples
Total Pre-discount loan balance $ 1,454,494 $ 20,784
$ 73,204 $ 179,696 $ 1,728,178 Allowance for loan losses
(ALLL) 14,236 - - - 14,236 Loan discount N/A
1,345 2,861
3,900 8,106
ALLL+loan discount 14,236 1,345 2,861 3,900 22,342
Loans, net $ 1,440,258 $ 19,439
$ 70,343 $ 175,796
$ 1,705,836 ALLL/ pre-discount loan
balance 0.98 % 0.00 % 0.00 % 0.00 % 0.82 % Loan discount/
pre-discount loan balance N/A 6.47 % 3.91 % 2.17 % 0.47 % ALLL+loan
discount/ pre-discount loan balance 0.98 % 6.47 % 3.91 % 2.17 %
1.29 %
On February 4, 2016, Horizon entered into an agreement to
acquire Kosciusko and its wholly-owned subsidiary, Farmers State
Bank, in a cash and stock merger. On April 18, 2016, Horizon
received all regulatory approvals required to complete the
transaction. The acquisition is expected to close in June of 2016,
subject to Kosciusko shareholder approval and the satisfaction of
other conditions to closing. Farmers State Bank serves the
Kosciusko County, Indiana market through five full-service banking
locations. As of December 31, 2015, Kosciusko had total assets of
$148.1 million.
On March 10, 2016, Horizon entered into an agreement to acquire
LaPorte Bancorp and its wholly-owned subsidiary, The LaPorte
Savings Bank, in a cash and stock merger. The acquisition is
expected to close in the third quarter of 2016, subject to
regulatory and LaPorte Bancorp shareholder approval. The LaPorte
Savings Bank serves La Porte and Porter Counties, Indiana through
seven full-service locations and one loan production office in
Saint Joseph, Michigan. As of December 31, 2015, LaPorte Bancorp
had total assets of $543.2 million.
Dwight stated, “We are pleased to be partnering with these
first-class community banks who will add talent and experience to
the Horizon team. LaPorte Bancorp will bolster Horizon’s presence
in La Porte and Porter Counties, Indiana while Kosciusko provides
growth opportunity in the attractive Warsaw, Indiana market area
and complements Horizon’s existing branch network in northeast
Indiana. The leadership teams of both organizations have created
strong community bank cultures that complement Horizon’s core
values and customer focused philosophy. We look forward to
welcoming their customers and employees and are excited about the
bright future these partnerships provide to our stakeholders.”
Income Statement Highlights
Net income for the first quarter of 2016 was $5.4 million or
$.44 diluted earnings per share compared to $5.4 million or $.55
diluted earnings per share in the first quarter of 2015. The
decrease in diluted earnings per share from the previous year
reflects an increase in the number of shares outstanding primarily
as a result of the Peoples Bancorp acquisition. 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 quarter of 2016 was
$5.4 million or $.45 diluted earnings per share compared to $4.6
million or $.47 diluted earnings per share in the same period of
2015.
Horizon’s net interest margin was 3.45% during the first quarter
of 2016, down from 3.50% for the prior quarter and 3.70% for same
period of 2015. The decrease in net interest margin compared to the
prior quarter and the same period of 2015 was due to lower yields
on new loans and re-pricing earning assets, partially offset by
lower rates and a change in mix on interest-bearing liabilities.
Excluding acquisition-related purchase accounting adjustments, the
margin would have been 3.36% for the first quarter of 2016 compared
to 3.38% for the prior quarter and 3.47% for the same period of
2015. Interest income from acquisition-related purchase accounting
adjustments was $547,000, $695,000 and $1.1 million for the three
months ended March 31, 2016, December 31, 2015 and March 31 2015,
respectively.
Residential mortgage lending activity during the first quarter
of 2016 generated $2.1 million in income from the gain on sale of
mortgage loans, a decrease of $265,000 from the first quarter of
2015. Total origination volume in the first quarter of 2016,
including loans placed into portfolio, totaled $79.4 million,
representing a decrease of 10.5% from the first quarter of 2015 of
$88.7 million. Purchase money mortgage originations during the
first quarter of 2016 represented 65.3% of total originations
compared to 68.7% of originations during the previous quarter and
50.2% during the first quarter of 2015.
Lending Activity
Total loans, net of allowance for loan losses, decreased $28.8
million from December 31, 2015 to $1.7 billion as of March 31,
2016. During the quarter, mortgage warehouse loans decreased $24.8
million, commercial loans decreased by $7.2 million and consumer
loans decreased by $2.7 million, which were partially offset by an
increase in residential mortgage loans of $5.7 million. The
decrease in mortgage warehouse loans was due to seasonality and
changes in mortgage compliance that slowed production volume during
the quarter. The decrease in commercial loans was primarily due to
three large commercial loan payoffs, seasonal pay downs on
agricultural lines of credit and annual agricultural term loan
payments.
The provision for loan losses was $532,000 for the three months
ended March 31, 2016 compared to $614,000 for the same period of
2015. The lower provision for loan losses for the first quarter of
2016 compared to the same period of 2015 reflects the improvement
in non-performing and substandard loans.
The ratio of the allowance for loan losses to total loans was
.83% as of March 31, 2016 and December 31, 2015. The ratio of the
allowance for loan losses to total loans, excluding loans with
credit-related purchase accounting adjustments, was .98% as of
March 31, 2016.
Non-performing loans totaled $15.0 million as of March 31, 2016
and $16.7 million as of December 31, 2015. Compared to December 31,
2015, non-performing commercial, real estate and consumer loans
decreased by $1.2 million, $264,000 and $201,000, respectively. As
a percentage of total loans, non-performing loans were .87% at
March 31, 2016, down from .95% at December 31, 2015 and 1.52% as of
March 31, 2015.
Expense Management
Total non-interest expense was $3.7 million higher in the first
quarter of 2016 compared to the same period of 2015. The increase
was primarily due to an increase in salaries and employee benefits
of $1.6 million, net occupancy expense of $385,000, data processing
fees of $182,000, professional fees of $304,000, other losses of
$312,000 and other expense of $456,000, reflecting overall company
growth and the Peoples Bancorp acquisition. Outside services and
consultants expense increased $473,000 during the quarter primarily
due to one-time expenses related to the Kosciusko and LaPorte
Bancorp acquisitions of $639,000 in the first quarter of 2016.
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 2016
2015 2015
2015 2015 Balance sheet: Total
assets $ 2,627,918 $ 2,652,401 $ 2,607,914 $ 2,219,307 $ 2,153,965
Investment securities 642,767 632,611 617,860 493,631 495,315
Commercial loans 797,754 804,995 795,271 709,946 695,736 Mortgage
warehouse loans 119,876 144,692 138,974 195,924 178,899 Residential
mortgage loans 442,806 437,144 430,946 277,407 260,390 Consumer
loans 359,636 362,300 361,298 336,006 326,334 Earning assets
2,379,830 2,403,482 2,363,755 2,031,671 1,974,251 Non-interest
bearing deposit accounts 343,025 335,955 338,436 307,215 285,181
Interest bearing transaction accounts 1,118,617 1,177,651 1,164,787
983,912 905,216 Time deposits 416,837 366,547 409,852 293,596
274,699 Borrowings 430,507 449,347 373,901 385,236 440,415
Subordinated debentures 32,836 32,797 32,758 32,719 32,680 Common
stockholders' equity 261,417 254,332 252,238 189,631 186,991 Total
stockholders’ equity 261,417 266,832 264,738 202,131 199,491
Income statement: Three months ended Net interest
income $ 19,774 $ 20,222 $ 19,776 $ 17,850 $ 16,886 Provision for
loan losses 532 342 300 1,906 614 Non-interest income 7,864 7,750
8,400 7,186 7,066 Non-interest expenses 19,747 19,240 22,235 16,650
16,068 Income tax expense 1,978
2,215 1,353
1,752 1,912 Net income 5,381
6,175 4,288 4,728 5,358 Preferred stock dividend (42 )
(31 ) (31 )
(31 ) (31 ) Net income available to
common shareholders $ 5,339 $ 6,144
$ 4,257 $ 4,697
$ 5,327
Per share data: Basic earnings
per share $ 0.45 $ 0.51 $ 0.37 $ 0.51 $ 0.58 Diluted earnings per
share 0.44 0.51 0.36 0.49 0.55 Cash dividends declared per common
share 0.15 0.15 0.15 0.14 0.14 Book value per common share 21.82
21.30 21.14 20.49 20.25 Tangible book value per common share 17.08
16.53 16.34 17.06 16.80 Market value - high 27.88 28.15 26.15 26.03
25.86 Market value - low $ 23.11 $ 23.58 $ 22.60 $ 22.85 $ 22.38
Weighted average shares outstanding - Basic 11,949,416 11,937,247
11,605,976 9,240,005 9,216,011 Weighted average shares outstanding
- Diluted 12,008,484 12,013,743 11,893,254 9,637,586 9,609,506
Key ratios: Return on average assets 0.83 % 0.94 %
0.67 % 0.87 % 1.05 % Return on average common stockholders' equity
8.26 9.53 6.76 9.88 11.66 Net interest margin 3.45 3.50 3.51 3.67
3.70 Loan loss reserve to total loans 0.83 0.83 0.93 1.08 1.13
Non-performing loans to loans 0.87 0.95 1.21 1.51 1.52 Average
equity to average assets 10.16 10.32 10.38 9.32 9.56 Bank only
capital ratios: Tier 1 capital to average assets 9.03 8.77 9.31
8.24 8.77 Tier 1 capital to risk weighted assets 12.53 11.80 12.30
10.76 11.30 Total capital to risk weighted assets 13.31 12.57 13.17
11.76 12.35
Loan data: Substandard loans $ 23,600 $
25,127 $ 26,073 $ 28,220 $ 27,355 30 to 89 days delinquent 2,149
5,011 4,868 3,326 3,945 90 days and greater delinquent -
accruing interest $ 1 $ 28 $ 100 $ 207 $ 19 Trouble debt
restructures - accruing interest 1,231 1,218 2,948 3,271 4,368
Trouble debt restructures - non-accrual 2,857 3,172 3,994 4,523
4,711 Non-accrual loans 10,895
12,262 13,956
15,050 13,282 Total
non-performing loans $ 14,984 $ 16,680
$ 20,998 $ 23,051
$ 22,380
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 2016
2015 2015 2015
2015 Commercial
$ 6,460 $ 7,195
$ 8,842 $ 8,386 $ 7,876 Real estate
1,794 2,476 2,297 3,044
3,281 Mortgage warehousing
1,014 1,007 1,015 1,319 1,272
Consumer
4,968 3,856
4,014 3,672
4,205 Total
$ 14,236 $ 14,534
$ 16,168 $ 16,421 $ 16,634
Net Charge-offs (Recoveries)
(Dollars in Thousands, Unaudited)
Three months ended March 31
December 31 September 30
June 30 March 31
2016 2015 2015
2015 2015 Commercial
$ 405 $ 1,595 $ 77 $ 1,583 $ (11 ) Real estate
84 (59 ) 96 161 20 Mortgage warehousing
- - - - -
Consumer
342 440
380 375 472
Total
$ 831 $ 1,976
$ 553 $ 2,119 $ 481
Total Non-performing Loans
(Dollars in Thousands, Unaudited)
March 31 December
31 September 30 June
30 March 31 2016
2015 2015 2015
2015 Commercial
$ 5,774 $ 7,005
$ 10,832 $ 13,384 $ 11,540 Real estate
5,973 6,237 6,315
5,819 6,062 Mortgage warehousing
- - - - - Consumer
3,237 3,438 3,851
3,848 4,778 Total
$ 14,984 $ 16,680 $
20,998 $ 23,051 $ 22,380
Other Real Estate Owned and Repossessed Assets
(Dollars in Thousands, Unaudited)
March 31 December
31 September 30 June
30 March 31 2016
2015 2015 2015
2015 Commercial
$ 424 $ 161 $
324 $ 376 $ 307 Real estate
3,393 3,046 958 58 219 Mortgage
warehousing
- - - - - Consumer
-
- - 37
223 Total
$ 3,817 $ 3,207
$ 1,282 $ 471 $ 749
HORIZON BANCORP AND SUBSIDIARIES Average Balance
Sheets
(Dollar Amounts in Thousands,
Unaudited)
Three Months Ended
Three Months Ended March 31, 2016 March 31,
2015 Average Average Average
Average Balance Interest
Rate Balance Interest
Rate ASSETS Interest-earning assets Federal
funds sold $ 2,424 $ 1 0.17 % $ 4,804 $ 2 0.17 % Interest-earning
deposits 20,810 49 0.95 % 10,772 3 0.11 % Investment securities -
taxable 463,544 2,494 2.16 % 360,554 2,149 2.42 % Investment
securities - non-taxable (1) 182,275 1,237 3.79 % 140,748 1,077
4.31 % Loans receivable (2)(3) 1,698,197
19,747 4.69 % 1,382,992 16,862
4.96 % Total interest-earning assets (1) 2,367,250 23,528 4.09 %
1,899,870 20,093 4.39 % Non-interest-earning assets Cash and
due from banks 32,925 28,994 Allowance for loan losses (14,508 )
(16,489 ) Other assets 214,604 157,553
$ 2,600,271 $ 2,069,928
LIABILITIES
AND SHAREHOLDERS' EQUITY Interest-bearing liabilities
Interest-bearing deposits $ 1,534,833 $ 1,491 0.39 % $ 1,215,862 $
1,232 0.41 % Borrowings 406,679 1,759 1.74 % 337,430 1,479 1.78 %
Subordinated debentures 32,813 504 6.18
% 32,657 496 6.16 % Total
interest-bearing liabilities 1,974,325 3,754 0.76 % 1,585,949 3,207
0.82 % Non-interest-bearing liabilities Demand deposits
339,141 271,158 Accrued interest payable and other liabilities
22,521 14,989 Stockholders' equity 264,284
197,832 $ 2,600,271 $ 2,069,928
Net interest income/spread $ 19,774 3.32 % $ 16,886 3.57 %
Net interest income as a percent of average interest earning assets
(1) 3.45 % 3.70 % (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 2016 2015 (Unaudited)
Assets Cash and due from banks
$
47,612 $ 48,650 Investment securities, available for sale
462,476 444,982 Investment securities, held to maturity
(fair value of $188,093 and $193,703)
180,291 187,629 Loans
held for sale
3,168 7,917 Loans, net of allowance for loan
losses of $14,236 and $14,534
1,705,836 1,734,597 Premises
and equipment, net
60,190 60,798 Federal Reserve and Federal
Home Loan Bank stock
13,823 13,823 Goodwill
49,600
49,600 Other intangible assets
7,095 7,371 Interest
receivable
10,476 10,535 Cash value of life insurance
54,849 54,504 Other assets
32,502
31,995 Total assets
$ 2,627,918
$ 2,652,401
Liabilities Deposits
Non-interest bearing
$ 343,025 $ 335,955 Interest
bearing
1,535,454 1,544,198
Total deposits
1,878,479 1,880,153 Borrowings
430,507 449,347 Subordinated debentures
32,836 32,797
Interest payable
580 507 Other liabilities
24,099 22,765 Total liabilities
2,366,501 2,385,569
Commitments and contingent liabilities Stockholders’
Equity Preferred stock, Authorized, 1,000,000 shares Series B
shares $.01 par value, $1,000 liquidation value Issued 0 and 12,500
shares
- 12,500 Common stock, no par value Authorized,
22,500,000 shares Issued, 12,008,497 and 11,995,324 shares
Outstanding, 11,983,313 and 11,939,887 shares
- - Additional
paid-in capital
106,500 106,370 Retained earnings
152,219 148,685 Accumulated other comprehensive income
(loss)
2,698 (723 ) Total
stockholders’ equity
261,417
266,832 Total liabilities and stockholders’ equity
$
2,627,918 $ 2,652,401
HORIZON
BANCORP AND SUBSIDIARIES Condensed Consolidated Statements
of Income
(Dollar Amounts in Thousands, Except Per
Share Data)
Three Months Ended March 31
2016 2015 (Unaudited)
(Unaudited) Interest Income
Loans receivable
$ 19,747 $ 16,862 Investment
securities Taxable
2,544 2,154 Tax exempt
1,237 1,077 Total
interest income
23,528
20,093
Interest Expense Deposits
1,491 1,232
Borrowed funds
1,759 1,479 Subordinated debentures
504 496 Total interest
expense
3,754 3,207
Net Interest Income 19,774 16,886 Provision
for loan losses
532 614
Net Interest Income after Provision for Loan Losses
19,242 16,272
Non-interest Income Service charges on deposit accounts
1,238 999 Wire transfer fees
121 151 Interchange fees
1,458 1,102 Fiduciary activities
1,635 1,297 Gain on
sale of investment securities (includes $108 and $124 for the three
months ended March 31, 2016 and 2015, respectively, related to
accumulated other comprehensive earnings reclassifications)
108 124 Gain on sale of mortgage loans
2,114 2,379
Mortgage servicing income net of impairment
447 179 Increase
in cash value of bank owned life insurance
345 258 Death
benefit on bank owned life insurance
- 145 Other income
398 432 Total
non-interest income
7,864
7,066
Non-interest Expense Salaries and employee
benefits
10,065 8,504 Net occupancy expenses
1,936
1,551 Data processing
1,105 923 Professional fees
831
527 Outside services and consultants
1,099 626 Loan expense
1,195 1,257 FDIC insurance expense
405 337 Other
losses
267 (45 ) Other expense
2,844
2,388 Total non-interest expense
19,747 16,068
Income
Before Income Tax 7,359 7,270 Income tax expense
(includes $38 and $43 for the three months ended March 31, 2016 and
2015, respectively, related to income tax expense from
reclassification items)
1,978
1,912
Net Income 5,381 5,358 Preferred
stock dividend
(42 ) (31
)
Net Income Available to Common Shareholders $
5,339 $ 5,327
Basic Earnings
Per Share $ 0.45 $ 0.58
Diluted Earnings Per
Share 0.44 0.55
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160425005157/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