MICHIGAN CITY, Ind., Oct. 23, 2024 (GLOBE NEWSWIRE) -- (NASDAQ GS: HBNC) - Horizon Bancorp, Inc. ("Horizon” or the "Company”), the parent company of Horizon Bank (the "Bank”), announced its unaudited financial results for the three and nine months ended September 30, 2024.

Net income for the three months ended September 30, 2024 was $18.2 million, or $0.41 per diluted share, compared to net income of $14.1 million, or $0.32, for the second quarter of 2024 and compared to net income of $16.2 million, or $0.37 per diluted share, for the third quarter of 2023.

Net income for the nine months ended September 30, 2024 was $46.3 million, or $1.05 per diluted share, compared to net income of $53.2 million, or $1.21, for the nine months ended September 30, 2023.

Third Quarter 2024 Highlights

  • Net interest income increased for the fourth consecutive quarter to $46.9 million, compared to $45.3 million in the linked quarter of 2024. Net interest margin, on a fully taxable equivalent ("FTE") basis1, expanded for the fourth consecutive quarter to 2.66%, compared to 2.64% in the linked quarter of 2024.
  • Total loans held for investment ("HFI") were $4.8 billion at September 30, 2024, relatively unchanged from June 30, 2024 balances. However, consistent with the Company's stated growth strategy, the commercial portfolio showed continued organic growth momentum during the quarter, which was offset with planned run-off of lower-yielding indirect auto loans in the consumer loan portfolio. 
  • Positive deposit growth of 1.7% during the quarter, to $5.7 billion at period end. The quarter was highlighted by stable non-interest bearing deposit balances and growth in core relationship consumer and commercial portfolios. 
  • Credit quality remains strong, with annualized net charge offs of 0.03% of average loans during the third quarter. Non-performing assets to total assets of 0.32% remains well within expected ranges, with no material change in the loss outlook. Provision for loan losses of $1.0 million reflects continued positive credit performance.
"Horizon continues to execute well on its key strategic initiatives of consistently improving our operating performance through a more productive balance sheet, growth in non-interest income and continued disciplined in our operating model. As a result, we are optimistic on the positive momentum of the franchise through year-end 2024 and into 2025. During the quarter, our commercial team was able to deliver another quarter of quality loan growth, even coming off a strong end to the second quarter. The strength of Horizon's core deposit franchise showed solid performance, and our credit metrics remain well managed. These efforts led to a third consecutive quarter of sequential growth in pre-tax pre-provision income," President and Chief Executive Officer Thomas M. Prame said. "Importantly, we continue our efforts to optimize our business model, and are pleased to announce the repositioning of a portion of our securities portfolio and the intended sale of our mortgage warehouse business during the fourth quarter. These shareholder accretive actions are expected to yield sustainable improvement in the profitability of our business that will be evident in the fourth quarter, and positively impact Horizon's financial performance in 2025."

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1 Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

Accretive Fourth Quarter 2024 Strategic Actions

Horizon announced strategic actions taking place in the fourth quarter of 2024, which are designed to simplify its business, strengthen the balance sheet and improve long-term structural profitability. In October, the Company completed the repositioning of about $325 million of available-for-sale securities. Additionally, the Company has signed a letter of intent to sell its mortgage warehouse business, which is expected to generate a gain-on-sale. Details on these actions, the use of proceeds, and the expected financial impact are available in the Company's third quarter 2024 investor presentation published at investor.horizonbank.com.

 
Financial Highlights
(Dollars in Thousands Except Share and Per Share Data and Ratios, Unaudited)
 Three Months Ended
 September 30, June 30, March 31, December 31, September 30,
 2024 2024 2024 2023 2023
Income statement:         
Net interest income$46,910  $45,279  $43,288  $42,257  $42,090 
Credit loss expense 1,044   2,369   805   1,274   263 
Non-interest income 11,511   10,485   9,929   (20,449)  11,830 
Non-interest expense 39,272   37,522   37,107   39,330   36,168 
Income tax expense (75)  1,733   1,314   6,419   1,284 
Net income$18,180  $14,140  $13,991  $(25,215) $16,205 
          
Per share data:         
Basic earnings per share$0.42  $0.32  $0.32  $(0.58) $0.37 
Diluted earnings per share 0.41   0.32   0.32   (0.58)  0.37 
Cash dividends declared per common share 0.16   0.16   0.16   0.16   0.16 
Book value per common share 17.27   16.62   16.49   16.47   15.89 
Market value - high 16.57   12.74   14.44   14.65   12.68 
Market value - low 11.89   11.29   11.75   9.33   9.90 
Weighted average shares outstanding - Basic 43,712,059   43,712,059   43,663,610   43,649,585   43,646,609 
Weighted average shares outstanding - Diluted 44,112,321   43,987,187   43,874,036   43,649,585   43,796,069 
Common shares outstanding (end of period) 43,712,059   43,712,059   43,726,380   43,652,063   43,648,501 
          
Key ratios:         
Return on average assets 0.92%  0.73%  0.72% (1.27)        %  0.81%
Return on average stockholders' equity 9.80   7.83   7.76   (14.23)  8.99 
Total equity to total assets 9.52   9.18   9.18   9.06   8.71 
Total loans to deposit ratio 83.92   85.70   82.78   78.01   76.52 
Allowance for credit losses to HFI loans 1.10   1.08   1.09   1.13   1.14 
Annualized net charge-offs of average total loans(1) 0.03   0.05   0.04   0.07   0.07 
Efficiency ratio 67.22   67.29   69.73   180.35   67.08 
          
Key metrics (Non-GAAP)(2) :   Advertisement

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