MICHIGAN CITY, Ind., April 23, 2025 (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 months ended March 31, 2025.
"Horizon's first quarter earnings displayed continued positive momentum in our core financial metrics and management's commitment to deliver long term value to its shareholders. Our results were highlighted by a sixth consecutive quarter of margin expansion, now above 3%, strong loan growth with exceptional credit metrics and a core funding base that continues to deliver value, even in an uncertain economic environment. The team also delivered a more efficient expense base entering 2025 and added optionality to our capital position through the successful sale of our mortgage warehouse business", President and CEO, Thomas Prame stated. "We are pleased with our first quarter results and the positive momentum across our community banking model. The core franchise remains strong and our investments in expanding our local relationship banking model is paying dividends".
Net income for the three months ended March 31, 2025 was $23.9 million, or $0.54 per diluted share, compared to net loss of $10.9 million, or $0.25, for the fourth quarter of 2024 and compared to $14.0 million, or $0.32 per diluted share, for the first quarter of 2024.
First Quarter 2025 Highlights
- Net interest margin, on a fully taxable equivalent ("FTE") basis1, expanded for the sixth consecutive quarter, to 3.04% compared with 2.97% for the three months ended December 31, 2024 and 2.50% for the three months ended March 31, 2024.
- Total loans held for investment ("HFI") increased 5% linked quarter annualized, with strong organic commercial loan growth of $103.3 million, or 14% annualized. This growth was partially funded by the continued strategic runoff of lowering yielding indirect auto loans of approximately $36 million.
- Core deposits continued to be stable, with non-interest-bearing balances growing $62.5 million during the period, or 24% annualized.
- Credit quality remained strong, with annualized net charge offs of 0.07% of average loans during the first quarter. Non-performing assets remain well within expected ranges, with no material change from the prior quarter.
- On January 17, 2025, the Company completed the sale of its mortgage warehouse business to an unrelated third party, resulting in a pre-tax gain of $7.0 million.
- Expenses were down $5.6 million from the fourth quarter of 2024, reflecting management's commitment to creating a more efficient expense base in 2025.
1 Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
| Financial Highlights | |||||||||||||||||||
| (Dollars in Thousands Except Share and Per Share Data and Ratios) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
| 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
| Income statement: | |||||||||||||||||||
| Net interest income | $ | 52,267 | $ | 53,127 | $ | 46,910 | $ | 45,279 | $ | 43,288 | |||||||||
| Credit loss expense | 1,376 | 1,171 | 1,044 | 2,369 | 805 | ||||||||||||||
| Non-interest income (loss) | 16,499 | (28,954 | ) | 11,511 | 10,485 | 9,929 | |||||||||||||
| Non-interest expense | 39,306 | 44,935 | 39,272 | 37,522 | 37,107 | ||||||||||||||
| Income tax expense (benefit) | 4,141 | (11,051 | ) | (75 | ) | 1,733 | 1,314 | ||||||||||||
| Net income (loss) | $ | 23,943 | $ | (10,882 | ) | $ | 18,180 | $ | 14,140 | $ | 13,991 | ||||||||
| Per share data: | |||||||||||||||||||
| Basic earnings (loss) per share | $ | 0.55 | $ | (0.25 | ) | $ | 0.42 | $ | 0.32 | $ | 0.32 | ||||||||
| Diluted earnings (loss) per share | 0.54 | (0.25 | ) | 0.41 | 0.32 | 0.32 | |||||||||||||
| Cash dividends declared per common share | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 | ||||||||||||||
| Book value per common share | 17.72 | 17.46 | 17.27 | 16.62 | 16.49 | ||||||||||||||
| Market value - High | 17.76 | 18.76 | 16.57 | 12.74 | 14.44 | ||||||||||||||
| Market value - Low | 15.00 | 14.57 | 11.89 | 11.29 | 11.75 | ||||||||||||||
| Weighted average shares outstanding - Basic | 43,777,109 | 43,721,211 | 43,712,059 | 43,712,059 | 43,663,610 | ||||||||||||||
| Weighted average shares outstanding - Diluted | 43,954,164 | 43,721,211 | 44,112,321 | 43,987,187 | 43,874,036 | ||||||||||||||
| Common shares outstanding (end of period) | 43,785,932 | 43,722,086 | 43,712,059 | 43,712,059 | 43,726,380 | ||||||||||||||
| Key ratios: | |||||||||||||||||||
| Return on average assets | 1.25 | % | (0.55 | )% | 0.92 | % | 0.73 | % | 0.72 | % | |||||||||
| Return on average stockholders' equity | 12.44 | (5.73 | ) | 9.80 | 7.83 | 7.76 | |||||||||||||
| Total equity to total assets | 10.18 | 9.79 | 9.52 | 9.18 | 9.18 | ||||||||||||||
| Total loans to deposit ratio | 85.21 | 87.75 | 83.92 | 85.70 | 82.78 | ||||||||||||||
| Allowance for credit losses to HFI loans | 1.07 | 1.07 | 1.10 | 1.08 | 1.09 | ||||||||||||||
| Annualized net charge-offs of average total loans(1) | 0.07 | 0.05 | 0.03 | 0.05 | 0.04 | ||||||||||||||
| Efficiency ratio | 57.16 | 185.89 | 67.22 | 67.29 | 69.73 | ||||||||||||||
| Key metrics (Non-GAAP)(2) : | |||||||||||||||||||
| Net FTE interest margin | 3.04 | % | 2.97 | % | 2.66 | % | 2.64 | % | 2.50 | % | |||||||||
| Return on average tangible common equity | 15.79 | (7.35 | ) | 12.65 |
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