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.
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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) : |
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