(NASDAQ GS:HBNC) – Horizon Bancorp (“Horizon”) today announced its
unaudited financial results for the three-month and twelve-month
periods ended December 31, 2017. All share data has been
adjusted to reflect Horizon’s three-for-two stock split effective
November 14, 2016.
SUMMARY:
- Net income for the year ended December 31, 2017 was $33.1
million, or $1.43 diluted earnings per share, compared to $23.9
million, or $1.19 diluted earnings per share, for the year ended
December 31, 2016.
- Net income, excluding acquisition-related expenses, gain on
sale of investment securities, prepayment penalties on borrowings,
gain on the accounting for Horizon’s equity interest in Lafayette
Community Bancorp (“Lafayette”), tax reform bill impact and
purchase accounting adjustments (“core net income”) for the year
ended December 31, 2017 increased 21.4% to $35.5 million or $1.53
diluted earnings per share compared to $29.2 million or $1.45
diluted earnings per share for the year of 2016.
- Net income for the fourth quarter of 2017 was $7.6 million, or
$0.30 diluted earnings per share, compared to $8.2 million, or
$0.36 diluted earnings per share, for the third quarter of 2017 and
$5.6 million, or $0.25 diluted earnings per share, for the fourth
quarter of 2016.
- Core net income for the fourth quarter of 2017 was $10.1
million, or $0.40 diluted earnings per share, compared to $9.2
million, or $0.41 diluted earnings per share, for the third quarter
of 2017 and $8.5 million, or $0.38 diluted earnings per share, for
the fourth quarter of 2016.
- Return on average assets was 0.97% for the year ended December
31, 2017 compared to 0.81% for the year ended December 31,
2016.
- Return on average assets, excluding acquisition-related
expenses, gain on sale of investment securities, prepayment
penalties on borrowings, gain on the accounting for Horizon’s
equity interest in Lafayette, tax reform bill impact and purchase
accounting adjustments (“core return on average assets”), for the
year ended December 31, 2017 was 1.04% compared to 0.99% for the
year ended December 31, 2016.
- Total loans increased by a rate of 32.2%, or $691.0 million,
during 2017. Total loans, excluding acquired loans, increased by a
rate of 11.3%, or $242.7 million, during 2017.
- Commercial loans increased by a rate of 51.2%, or $547.9
million, during 2017. Commercial loans, excluding acquired
commercial loans, increased by a rate of 14.3%, or $152.7 million,
during 2017.
- Consumer loans increased by a rate of 28.7%, or $114.4 million,
during 2017. Consumer loans, excluding acquired consumer loans,
increased by a rate of 26.3%, or $104.7 million, during 2017.
- Net interest income increased $26.1 million, or 30.4%, to
$112.1 million for the year ended December 31, 2017 compared to
$86.0 million for the year ended December 31, 2016.
- Net interest margin was 3.75% for the year ended December 31,
2017 compared to 3.29% for the year ended December 31, 2016. The
improvement in net interest margin from the prior year was due to
Horizon executing a strategy to reduce expensive funding costs in
the fourth quarter of 2016, an increase in average interest-earning
assets, an increase in loan yields and the increase in interest
rates during 2017.
- Net interest margin, excluding the impact of prepayment
penalties on borrowings and purchase accounting adjustments (“core
net interest margin”), was 3.64% for the year ended December 31,
2017 compared to 3.38% for the year ended December 31, 2016.
- Horizon’s tangible book value per share increased following the
acquisitions of Lafayette and Wolverine Bancorp, Inc. (“Wolverine”)
to $12.72 at December 31, 2017, compared to $12.38 and $11.48 at
September 30, 2017 and December 31, 2016, respectively.
- On October 17, 2017, Horizon closed on the merger with
Wolverine and its wholly-owned subsidiary, Wolverine Bank,
headquartered in Midland, Michigan. The related system integration
was successfully completed on November 10, 2017.
Craig Dwight, Chairman and CEO, commented: “I am
very pleased to announce Horizon Bancorp’s 2017 results and the
incredible effort put forth by our entire team. Horizon’s
performance for the year required an incredible team effort, based
on the fact that we reported solid organic loan growth and
successfully closed on a single branch acquisition and two
whole-banks mergers. In addition, we were able to improve our net
interest margin as a result of changes we made to our balance sheet
in the fourth quarter of 2016 and therefore realized the benefits
of said changes in 2017. Horizon’s core net income of $10.1 million
for the fourth quarter and $35.5 million for the year is an
increase of 19.0% and 21.4%, respectively, when compared to the
prior year. Core diluted earnings per share increased 5.3%, to
$0.40, for the fourth quarter and 5.5%, to $1.53, for 2017 when
compared to the prior year.”
Dwight continued, “We continued to follow our
balanced strategy of well-executed acquisitions and organic growth
throughout 2017. During the first quarter of 2017, Horizon
completed the acquisition of a single branch of First Farmers Bank
& Trust Company located in Bargersville, Indiana which added
$3.4 million in loans and $14.8 million in deposits and enhanced
our presence in this attractive and rapidly growing central Indiana
market. During the third quarter of 2017, we completed the
acquisition of Lafayette Community Bancorp adding an experienced
team of bankers to capitalize on future opportunities in the growth
market of Lafayette, Indiana. Horizon also completed the
acquisition of Wolverine Bancorp, Inc. during the fourth quarter of
2017 adding another experienced team of bankers located at three
full-service locations in the Great Lakes Bay Region of Michigan
and a loan production office in Troy, Michigan. The acquisitions of
Lafayette and Wolverine increased total loans by $445.0
million.”
Mr. Dwight concluded, “In addition to these
acquisitions, we continued to execute our organic growth strategy
and experienced solid loan growth in 2017. Total loans, excluding
acquired loans, loans held for sale and mortgage warehouse loans
increased by 14.4%, or $288.9 million, primarily due to commercial
and consumer loan growth. Horizon’s growth markets of Fort Wayne,
Grand Rapids, Indianapolis and Kalamazoo, grew by $109.1 million,
or 27.5%, during the year. The addition of a seasoned consumer loan
portfolio manager during the third quarter of 2016 and an increased
focus on the management of direct consumer loans resulted in an
increase of 26.3% in consumer loans during 2017.”
Income Statement Highlights
Net income for the fourth quarter of 2017 was
$7.6 million, or $0.30 diluted earnings per share, compared to $8.2
million, or $0.36 diluted earnings per share, for the third quarter
of 2017 and $5.6 million, or $0.25 diluted earnings per share, for
the fourth quarter of 2016. Excluding acquisition-related expenses,
gain on sale of investment securities, prepayment penalties on
borrowings, gain on the accounting for Horizon’s equity interest in
Lafayette, tax reform bill impact and purchase accounting
adjustments (“core net income”), net income for the fourth quarter
of 2017 was $10.1 million, or $0.40 diluted earnings per share,
compared to $9.2 million, or $0.41 diluted earnings per share, for
the third quarter of 2017 and $8.5 million, or $0.38 diluted
earnings per share, for the fourth quarter of 2016.
The decrease in net income from the third
quarter of 2017 to the fourth quarter of 2017 reflects increases in
income tax expense of $3.3 million, non-interest expense of $1.8
million and provision for loan losses of $390,000, partially offset
by increases in net interest income of $3.6 million and
non-interest income of $1.3 million. In addition to the decrease in
net income, diluted earnings per share decreased due to the stock
issued in the Lafayette and Wolverine acquisitions. The increase in
income tax expense was primarily due to the $2.4 million adjustment
of Horizon’s net deferred tax assets to the new corporate tax rate.
The increase in non-interest income reflects the finalized entries
of the Lafayette acquisition which resulted in a gain on the
accounting for Horizon’s previous equity interest in Lafayette of
$530,000. Also, fiduciary activities income increased $255,000 from
the third quarter to the fourth quarter.
The increase in net income and diluted earnings
per share from the fourth quarter of 2016 to the same 2017 period
reflects an increase in net interest income of $10.5 million,
partially offset by increases in income tax expense of $4.1
million, non-interest expense of $3.7 million, provision for loan
losses of $477,000 and average diluted shares outstanding. The
majority of the increase in income tax expense was due to the $2.4
million adjustment of Horizon’s net deferred tax assets to the new
corporate tax rate. Gains on the sale of investment securities
decreased $961,000 from the fourth quarter of 2016 to the same
period in 2017, partially offset by the gain on the accounting for
Horizon’s previous equity interest in Lafayette of $530,000.
Net income for the year ended December 31, 2017
was $33.1 million, or $1.43 diluted earnings per share, compared to
$23.9 million, or $1.19 diluted earnings per share, for the year
ended December 31, 2016. The increase in net income and diluted
earnings per share from 2016 to 2017 reflects an increase in net
interest income of $26.1 million offset by a decrease in
non-interest income of $2.3 million and increases in non-interest
expense of $7.9 million, income tax expense of $6.0 million and
provision for loan losses of $628,000. Core net income for the year
ended December 31, 2017 was $35.5 million, or $1.53 diluted
earnings per share, compared to $29.2 million, or $1.45 diluted
earnings per share, for the year ended December 31, 2016.
| Non-GAAP Reconciliation of Net Income and
Diluted Earnings per Share |
| (Dollars in Thousands Except per Share Data) |
| |
Three Months Ended |
Twelve Months Ended |
| |
December 31 |
December 31 |
| Non-GAAP
Reconciliation of Net Income |
2017 |
2016 |
2017 |
2016 |
| |
(Unaudited) |
(Unaudited) |
| Net income as
reported |
$ |
7,650 |
|
$ |
5,603 |
|
$ |
33,117 |
|
$ |
23,912 |
|
| Merger expenses |
|
1,444 |
|
|
1,354 |
|
|
3,656 |
|
|
6,827 |
|
| Tax effect |
|
(418 |
) |
|
(416 |
) |
|
(1,003 |
) |
|
(1,998 |
) |
| Net income excluding
merger expenses |
|
8,676 |
|
|
6,541 |
|
|
35,770 |
|
|
28,741 |
|
| |
|
|
| Gain on sale of
investment securities |
|
- |
|
|
(961 |
) |
|
(38 |
) |
|
(1,836 |
) |
| Tax effect |
|
- |
|
|
336 |
|
|
13 |
|
|
643 |
|
| Net income excluding
gain on sale of investment securities |
|
8,676 |
|
|
5,916 |
|
|
35,745 |
|
|
27,548 |
|
| |
|
|
|
|
| Prepayment penalties on
borrowings |
|
- |
|
|
4,839 |
|
|
- |
|
|
4,839 |
|
| Tax effect |
|
- |
|
|
(1,694 |
) |
|
- |
|
|
(1,694 |
) |
| Net income excluding
prepayment penalties on borrowings |
|
8,676 |
|
|
9,061 |
|
|
35,745 |
|
|
30,693 |
|
| |
|
|
|
|
| Gain on remeasurement
of equity interest in Lafayette |
|
(530 |
) |
|
- |
|
|
(530 |
) |
|
- |
|
| Tax effect |
|
78 |
|
|
- |
|
|
78 |
|
|
- |
|
| Net income excluding
gain on remeasurement of equity interest in Lafayette |
|
8,224 |
|
|
9,061 |
|
|
35,293 |
|
|
30,693 |
|
| |
|
|
|
|
| Tax reform bill
impact |
|
2,426 |
|
|
- |
|
|
2,426 |
|
|
- |
|
| Net income excluding
tax reform bill impact |
|
10,650 |
|
|
9,061 |
|
|
37,719 |
|
|
30,693 |
|
| |
|
|
|
|
| Acquisition-related
purchase accounting adjustments ("PAUs") |
|
(868 |
) |
|
(900 |
) |
|
(3,484 |
) |
|
(2,304 |
) |
| Tax effect |
|
304 |
|
|
315 |
|
|
1,219 |
|
|
807 |
|
| Net income excluding
(PAUs) |
$ |
10,086 |
|
$ |
8,476 |
|
$ |
35,454 |
|
$ |
29,196 |
|
| |
|
|
|
|
| Non-GAAP
Reconciliation of Diluted Earnings per Share |
|
|
|
|
| Diluted earnings per
share as reported |
$ |
0.30 |
|
$ |
0.25 |
|
$ |
1.43 |
|
$ |
1.19 |
|
| Merger expenses |
|
0.06 |
|
|
0.06 |
|
|
0.16 |
|
|
0.34 |
|
| Tax effect |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.04 |
) |
|
(0.10 |
) |
| Diluted earnings per
share excluding merger expenses |
|
0.34 |
|
|
0.29 |
|
|
1.55 |
|
|
1.43 |
|
| |
|
|
|
|
| Gain on sale of
investment securities |
|
- |
|
|
(0.04 |
) |
|
- |
|
|
(0.09 |
) |
| Tax effect |
|
- |
|
|
0.02 |
|
|
- |
|
|
0.03 |
|
| Diluted earnings per
share excluding gain on sale of investment securities |
|
0.34 |
|
|
0.27 |
|
|
1.55 |
|
|
1.37 |
|
| |
|
|
|
|
| Prepayment penalties on
borrowings |
|
- |
|
|
0.22 |
|
|
- |
|
|
0.24 |
|
| Tax effect |
|
- |
|
|
(0.08 |
) |
|
- |
|
|
(0.08 |
) |
| Diluted earnings per
share excluding prepayment penalties on borrowings |
|
0.34 |
|
|
0.41 |
|
|
1.55 |
|
|
1.53 |
|
| |
|
|
|
|
| Gain on remeasurement
of equity interest in Lafayette |
|
(0.02 |
) |
|
- |
|
|
(0.02 |
) |
|
- |
|
| Tax effect |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
| Diluted earnings per
share excluding gain on remeasurement of equity interest in
Lafayette |
|
0.32 |
|
|
0.41 |
|
|
1.53 |
|
|
1.53 |
|
| |
|
|
|
|
| Tax reform bill
impact |
|
0.10 |
|
|
- |
|
|
0.10 |
|
|
- |
|
| Diluted earnings per
share excluding tax reform bill impact |
|
0.42 |
|
|
0.41 |
|
|
1.63 |
|
|
1.53 |
|
| |
|
|
|
|
| Acquisition-related
PAUs |
|
(0.03 |
) |
|
(0.04 |
) |
|
(0.15 |
) |
|
(0.11 |
) |
| Tax effect |
|
0.01 |
|
|
0.01 |
|
|
0.05 |
|
|
0.03 |
|
| Diluted earnings per
share excluding PAUs |
$ |
0.40 |
|
$ |
0.38 |
|
$ |
1.53 |
|
$ |
1.45 |
|
| |
|
|
|
|
Horizon’s net interest margin remained at 3.71%
for the fourth quarter of 2017 when compared to the prior quarter
and increased from 2.92% for the fourth quarter of 2016. The
increase in net interest margin reflects a decrease in the cost of
interest-bearing liabilities of 66 basis points and an increase in
the yield of interest-earning assets of 25 basis points. The
decrease in the cost of interest-bearing liabilities was primarily
due to prepayment penalties incurred on high fixed-rate borrowings
as part of Horizon’s balance sheet restructuring transaction in the
fourth quarter of 2016. The increase in the yield of
interest-earning assets was due to an increase in the yield on
taxable investment securities and loans receivable of 28 and 6
basis points, respectively. Excluding prepayment penalties on
borrowings and acquisition-related purchase accounting adjustments
(“core net interest margin”), the margin was 3.61% for the fourth
quarter of 2017 compared to 3.63% for the prior quarter and 3.45%
for the fourth quarter of 2016. Interest expense from the
prepayment penalties on borrowings was $4.8 million during the
three months ended December 31, 2016. Interest income from
acquisition-related purchase accounting adjustments was $868,000,
$661,000 and $900,000 for the three months ended December 31, 2017,
September 30, 2017 and December 31, 2016, respectively.
Horizon’s net interest margin increased to 3.75%
for the year ended December 31, 2017 compared to 3.29% for the year
ended December 31, 2016. The increase in net interest margin
reflects a decrease in the cost of interest-bearing liabilities of
26 basis points and an increase in the yield of interest-earning
assets of 24 basis points. The decrease in the cost of
interest-bearing liabilities was primarily due to Horizon’s balance
sheet restructuring transaction completed in the fourth quarter of
2016 resulting in a decrease of 116 basis points in the cost of
borrowings when comparing 2017 to 2016. The increase in the yield
on interest-earning assets was due to a 12 basis point increase in
the yield on loans receivable and an 11 basis point increase on
taxable investment securities. Core net interest margin increased
to 3.64% for the year ended December 31, 2017 compared to 3.38% for
the year ended December 31, 2016. Interest expense from the
prepayment penalties on borrowings was $4.8 million during 2016.
Interest income from acquisition-related purchase accounting
adjustments was $3.5 million and $2.3 million for the year ended
December 31, 2017 and 2016, respectively.
|
|
| Non-GAAP Reconciliation of Net Interest
Margin |
| (Dollars in Thousands, Unaudited) |
| |
Three Months Ended |
Twelve Months Ended |
| |
December 31 |
September 30 |
December 31 |
December 31 |
| Net Interest
Margin As Reported |
2017 |
2017 |
2016 |
2017 |
2016 |
| Net interest
income |
$ |
31,455 |
|
$ |
27,879 |
|
$ |
20,939 |
|
$ |
112,100 |
|
$ |
85,992 |
|
| Average
interest-earning assets |
|
3,471,169 |
|
|
3,078,611 |
|
|
2,932,145 |
|
|
3,074,464 |
|
|
2,683,383 |
|
| Net interest income as
a percent of average interest- |
|
|
|
|
| earning assets ("Net
Interest Margin") |
|
3.71 |
% |
|
3.71 |
% |
|
2.92 |
% |
|
3.75 |
% |
|
3.29 |
% |
| |
|
|
|
|
| Impact of
Prepayment Penalties on Borrowings |
|
|
|
|
| Interest expense from
prepayment penalties on |
|
|
|
|
| borrowings |
$ |
- |
|
$ |
- |
|
$ |
4,839 |
|
$ |
- |
|
$ |
4,839 |
|
| |
|
|
|
|
| Impact of
Acquisitions |
|
|
|
|
| Interest income from
acquisition-related |
|
|
|
|
| purchase accounting
adjustments |
$ |
(868 |
) |
$ |
(661 |
) |
$ |
(900 |
) |
$ |
(3,484 |
) |
$ |
(2,304 |
) |
| |
|
|
|
|
| Excluding
Impact of Prepayment Penalties and Acquisitions |
|
|
|
|
| Net interest
income |
$ |
30,587 |
|
$ |
27,218 |
|
$ |
24,878 |
|
$ |
108,616 |
|
$ |
88,527 |
|
| Average
interest-earning assets |
|
3,471,169 |
|
|
3,078,611 |
|
|
2,932,145 |
|
|
3,074,464 |
|
|
2,683,383 |
|
| Core Net Interest
Margin |
|
3.61 |
% |
|
3.63 |
% |
|
3.45 |
% |
|
3.64 |
% |
|
3.38 |
% |
| |
|
|
|
|
Lending Activity
Total loans increased $405.6 million from $2.429
billion as of September 30, 2017 to $2.835 billion as of December
31, 2017 as commercial loans increased by $344.1 million,
residential mortgage loans increased by $35.7 million and consumer
loans increased by $27.4 million. Total loans, excluding acquired
loans, mortgage warehouse loans and loans held for sale increased
by $96.5 million when compared to September 30, 2017.
| Loan Growth by Type, Excluding Acquired
Loans |
| Three Months Ended December 31,
2017 |
| (Dollars in Thousands) |
|
|
Excluding Acquired Loans |
| |
December 31 |
September 30 |
Amount |
Acquired |
Amount |
Percent |
| |
2017 |
2017 |
Change |
Loans |
Change |
Change |
| |
(Unaudited) |
(Unaudited) |
|
|
|
|
| Commercial loans |
$ |
1,617,870 |
$ |
1,273,790 |
$ |
344,080 |
|
$ |
(276,167 |
) |
$ |
67,913 |
|
5.3 |
% |
| Residential mortgage
loans |
|
606,760 |
|
571,062 |
|
35,698 |
|
|
(30,603 |
) |
|
5,095 |
|
0.9 |
% |
| Consumer loans |
|
512,857 |
|
485,490 |
|
27,367 |
|
|
(3,897 |
) |
|
23,470 |
|
4.8 |
% |
| Subtotal |
|
2,737,487 |
|
2,330,342 |
|
407,145 |
|
|
(310,667 |
) |
|
96,478 |
|
4.1 |
% |
| Held for sale
loans |
|
3,094 |
|
3,616 |
|
(522 |
) |
|
- |
|
|
(522 |
) |
-14.4 |
% |
| Mortgage warehouse
loans |
|
94,508 |
|
95,483 |
|
(975 |
) |
|
- |
|
|
(975 |
) |
-1.0 |
% |
| Total loans |
$ |
2,835,089 |
$ |
2,429,441 |
$ |
405,648 |
|
$ |
(310,667 |
) |
$ |
94,981 |
|
3.9 |
% |
|
|
Total loans increased $691.0 million to $2.835
billion at December 31, 2017 from $2.144 billion at December 31,
2016 as commercial loans increased by $547.9 million, consumer
loans increased by $114.4 million and residential mortgage loans
increased by $74.9 million, partially offset by a decrease in
mortgage warehouse loans of $41.2 million and loans held for sale
of $5.0 million. Total loans, excluding acquired loans, mortgage
warehouse loans and loans held for sale, increased by a rate of
14.4%, or $288.9 million, during 2017.
| |
| Loan Growth by Type, Excluding Acquired
Loans |
| Twelve Months Ended December 31,
2017 |
| (Dollars in Thousands) |
|
|
Excluding Acquired Loans |
| |
December 31 |
December 31 |
Amount |
Acquired |
Amount |
Percent |
| |
2017 |
2016 |
Change |
Loans |
Change |
Change |
| |
(Unaudited) |
|
|
|
|
|
| Commercial loans |
$ |
1,617,870 |
$ |
1,069,956 |
$ |
547,914 |
|
$ |
(395,167 |
) |
$ |
152,747 |
|
14.3 |
% |
| Residential mortgage
loans |
|
606,760 |
|
531,874 |
|
74,886 |
|
|
(43,423 |
) |
|
31,463 |
|
5.9 |
% |
| Consumer loans |
|
512,857 |
|
398,429 |
|
114,428 |
|
|
(9,739 |
) |
|
104,689 |
|
26.3 |
% |
| Subtotal |
|
2,737,487 |
|
2,000,259 |
|
737,228 |
|
|
(448,329 |
) |
|
288,899 |
|
14.4 |
% |
| Held for sale
loans |
|
3,094 |
|
8,087 |
|
(4,993 |
) |
|
- |
|
|
(4,993 |
) |
-61.7 |
% |
| Mortgage warehouse
loans |
|
94,508 |
|
135,727 |
|
(41,219 |
) |
|
- |
|
|
(41,219 |
) |
-30.4 |
% |
| Total loans |
$ |
2,835,089 |
$ |
2,144,073 |
$ |
691,016 |
|
$ |
(448,329 |
) |
$ |
242,687 |
|
11.3 |
% |
|
|
Residential mortgage lending activity for the
three months ended December 31, 2017 generated $2.0 million in
income from the gain on sale of mortgage loans, an increase of
$37,000 from the previous quarter and a decrease of $612,000 from
the same period in 2016. Total origination volume for the fourth
quarter of 2017, including loans placed into portfolio, totaled
$90.1 million, representing a decrease of 5.3% from the previous
quarter and a decrease of 24.0% from the same period in 2016.
Residential mortgage lending activity for the
year ended December 31, 2017 generated $7.9 million in income from
the gain on sale of mortgage loans, a decrease of $3.4 million when
compared to the year ended December 31, 2016. Total origination
volume for the year ended December 31, 2017, including loans placed
into portfolio, totaled $361.5 million, a decrease of 21.4%
compared to the year ended December 31, 2016.
The decrease in mortgage loan origination volume
was primarily due to a decrease in mortgage loan refinance activity
when comparing 2017 to 2016. Purchase money mortgage originations
during the fourth quarter of 2017 represented 73.7% of total
originations compared to 80.2% of originations during the previous
quarter and 65.7% during the fourth quarter of 2016. Purchase money
mortgage originations for the year ended December 31, 2017
represented 76.1% of originations compared to 69.5% for the year
ended December 31, 2016.
The provision for loan losses totaled $1.1
million for the fourth quarter of 2017 compared to $710,000 for the
third quarter of 2017 and $623,000 for the fourth quarter of 2016.
The provision for loan losses totaled $2.5 million and $1.8 million
for the years ended December 31, 2017 and 2016, respectively. The
increase in the provision for loan losses in 2017 was due to
additional allocations for loan growth in new markets and an
increase in allocation for agricultural economic factors.
The ratio of the allowance for loan losses to
total loans decreased to 0.58% as of December 31, 2017 from 0.69%
as of December 31, 2016 due to an increase in gross loans. The
ratio of the allowance for loan losses to total loans, excluding
loans with credit-related purchase accounting adjustments, was
0.81% as of December 31, 2017 compared to 0.91% as of December 31,
2016. Loan loss reserves and credit-related loan discounts on
acquired loans as a percentage of total loans were 1.23% as of
December 31, 2017 compared to 1.39% as of December 31, 2016.
| |
|
|
|
|
|
|
|
|
|
|
| Non-GAAP Allowance for Loan and Lease Loss
Detail |
| As of December 31, 2017 |
| (Dollars in Thousands, Unaudited) |
|
|
| |
Horizon |
|
| |
Legacy |
Heartland |
Summit |
Peoples |
Kosciusko |
LaPorte |
CNB |
Lafayette |
Wolverine |
Total |
| Pre-discount loan
balance |
$ |
2,019,194 |
|
$ |
11,646 |
|
$ |
40,995 |
|
$ |
113,171 |
|
$ |
60,497 |
|
$ |
142,824 |
|
$ |
6,583 |
|
$ |
144,444 |
|
$ |
311,313 |
|
$ |
2,850,667 |
|
| |
|
|
|
| Allowance for loan
losses (ALLL) |
|
16,394 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
16,394 |
|
| Loan discount |
|
N/A |
|
|
800 |
|
|
2,241 |
|
|
2,754 |
|
|
758 |
|
|
3,796 |
|
|
167 |
|
|
3,226 |
|
|
4,930 |
|
|
18,672 |
|
| ALLL + loan
discount |
|
16,394 |
|
|
800 |
|
|
2,241 |
|
|
2,754 |
|
|
758 |
|
|
3,796 |
|
|
167 |
|
|
3,226 |
|
|
4,930 |
|
|
35,066 |
|
| |
|
|
|
| Loans, net |
$ |
2,002,800 |
|
$ |
10,846 |
|
$ |
38,754 |
|
$ |
110,417 |
|
$ |
59,739 |
|
$ |
139,028 |
|
$ |
6,416 |
|
$ |
141,218 |
|
$ |
306,383 |
|
$ |
2,815,601 |
|
| |
|
|
|
| ALLL/pre-discount loan
balance |
|
0.81 |
% |
|
0.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
|
0.58 |
% |
| Loan
discount/pre-discount loan balance |
|
N/A |
|
|
6.87 |
% |
|
5.47 |
% |
|
2.43 |
% |
|
1.25 |
% |
|
2.66 |
% |
|
2.54 |
% |
|
2.23 |
% |
|
1.58 |
% |
|
0.66 |
% |
| ALLL +loan
discount/pre-discount loan balance |
|
0.81 |
% |
|
6.87 |
% |
|
5.47 |
% |
|
2.43 |
% |
|
1.25 |
% |
|
2.66 |
% |
|
2.54 |
% |
|
2.23 |
% |
|
1.58 |
% |
|
1.23 |
% |
|
|
|
Non-performing loans to total loans increased 8
basis points to 0.58% at December 31, 2017 from 0.50% at December
31, 2016. Non-performing loans totaled $16.4 million as of December
31, 2017, an increase of $5.7 million from $10.7 million as of
December 31, 2016. Compared to December 31, 2016, non-performing
commercial loans increased by $4.7 million, non-performing real
estate loans increased by $694,000 and non-performing consumer
loans increased by $328,000. The increase in non-performing loans
was driven primarily by loans acquired from Lafayette Community
Bank and Wolverine Bank.
Expense Management
Total non-interest expense was $1.8 million
higher in the fourth quarter of 2017 when compared to the previous
quarter. Excluding merger-related expenses of $1.4 million and $2.0
million during the three months ended December 31, 2017 and
September 30, 2017, respectively, total non-interest expense
increased $2.3 million, or 10.4%. The increase was primarily due to
an increase in salaries and employee benefits of $1.4 million due
to additional compensation expenses related to performance based
incentive plans and the recent Wolverine acquisition. Other expense
increased $338,000 reflecting overall company growth, market
expansion and recent acquisitions. Outside services and consultant
expense decreased $447,000 due to a lower amount of merger-related
expenses incurred during the fourth quarter of 2017 when compared
to the previous quarter. In addition, the cost savings anticipated
from the Lafayette and Wolverine acquisitions were not yet fully
realized during the fourth quarter of 2017. We expect the cost
savings from these acquisitions will start to be fully realized in
the first quarter of 2018.
Total non-interest expense was $3.7 million
higher in the fourth quarter of 2017 compared to the same period of
2016. Excluding merger-related expenses of $1.4 million recorded in
both quarters ended December 31, 2017 and 2016, total non-interest
expense increased $3.6 million, or 17.0%. The increase was
primarily due to an increase in salaries and employee benefits of
$2.9 million, other expenses of $390,000, net occupancy expenses of
$176,000, outside services and consultants expense of $147,000 and
professional fees of $131,000. The increase in salaries and
employee benefits reflects additional compensation expense related
to performance based incentive plans, overall company growth and
recent acquisitions. Other expenses and net occupancy expenses
increased as a result of market expansions and acquisitions. The
increase in outside services and consultants expense and
professional fees was due to a higher amount of merger-related
expenses during the fourth quarter of 2017 when compared to the
same period of 2016. Finally, the cost savings anticipated from the
Lafayette and Wolverine acquisitions were not yet fully realized
during the fourth quarter of 2017. We expect the cost savings from
these acquisitions will start to be fully realized in the first
quarter of 2018.
Total non-interest expense for the year ended
December 31, 2017 increased $7.9 million when compared to the year
ended December 31, 2016. Excluding merger-related expenses of $3.7
million and $6.8 million recorded during the year ended December
31, 2017 and 2016, respectively, total non-interest expense
increased $11.1 million. The increase was primarily due to
increases in salaries and employee benefits of $7.4 million, net
occupancy expenses of $1.2 million, other expenses of $1.3 million
and data processing expenses of $547,000, partially offset by
decreases in outside services and consultants expense of $845,000,
loan expense of $612,000, FDIC insurance expense of $513,000, other
losses of $316,000 and professional fees of $262,000. The increase
in salaries and employee benefits expense reflects additional
compensation expense related to performance based incentive plans,
overall company growth and recent acquisitions. Net occupancy
expenses, other expenses and data processing expenses increased
primarily due to overall company growth, market expansions and
acquisitions. Outside services and consultants expense and
professional fees decreased due to a lower amount of merger-related
expenses in 2017 compared to 2016. The decrease in loan expense
reflects a decrease in loan collection expenses when comparing 2017
to 2016. The reduced assessment rate schedule implemented by the
FDIC in the fourth quarter of 2016 resulted in the decrease of FDIC
insurance expense in 2017. Other losses decreased primarily due to
lower debit card fraud-related expenses in 2017.
Income tax expense totaled $5.8 million for the
fourth quarter of 2017, an increase of $3.3 million and $4.1
million when compared to the third quarter of 2017 and fourth
quarter of 2016, respectively. The increase was primarily due to
the impact of the new corporate tax rate which was signed into law
at the end of 2017. An adjustment to Horizon’s net deferred tax
asset of $2.4 million ($1.7 million of net deferred tax assets and
$766,000 of net deferred tax assets related to accumulated other
comprehensive income) was recorded to income tax expense during the
fourth quarter of 2017 to reflect the new corporate tax rate. Also
reflected in this increase in income tax expense is an increase of
$2.7 million and $6.2 million in income before income taxes when
comparing the fourth quarter of 2017 to the previous quarter and
the fourth quarter of 2016, respectively.
Income tax expense increased $6.0 million for
the year ended December 31, 2017 compared to the year ended
December 31, 2016. The majority of this increase was due to an
increase in income before taxes of $15.2 million during 2017. Also
reflected in this increase is the adjustment to Horizon’s net
deferred tax asset of $2.4 million recorded during the fourth
quarter of 2017.
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 relating to net income, diluted
earnings per share, net interest margin, total loans and loan
growth, the allowance for loan and lease losses, tangible
stockholders’ equity, tangible book value per share and the return
on average assets. In each case, we have identified special
circumstances that we consider to be non-recurring and have
excluded them, to show the impact of such events as
acquisition-related purchase accounting adjustments, prepayment
penalties on borrowings and the tax reform bill, among others we
have identified in our reconciliations. 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. 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. See the tables and other information
below and contained elsewhere in this press release for
reconciliations of the non-GAAP figures identified herein and their
most comparable GAAP measures.
| |
|
|
|
|
|
| Non-GAAP Reconciliation of Tangible
Stockholders' Equity and Tangible Book Value per
Share |
| (Dollars in Thousands Except per Share Data,
Unaudited) |
|
|
| |
December 31 |
September 30 |
June 30 |
March 31 |
December 31 |
| |
2017 |
2017 |
2017 |
2017 |
2016 |
| Total stockholders'
equity |
$ |
457,078 |
$ |
392,055 |
$ |
357,259 |
$ |
348,575 |
$ |
340,855 |
| Less: Intangible
assets |
|
132,282 |
|
103,244 |
|
86,726 |
|
87,094 |
|
86,307 |
| Total tangible
stockholders' equity |
$ |
324,796 |
$ |
288,811 |
$ |
270,533 |
$ |
261,481 |
$ |
254,548 |
| |
|
|
|
|
|
| Common shares
outstanding |
|
25,529,819 |
|
23,325,459 |
|
22,176,465 |
|
22,176,465 |
|
22,171,596 |
| |
|
|
|
|
|
| Tangible book value per
common share |
$ |
12.72 |
$ |
12.38 |
$ |
12.20 |
$ |
11.79 |
$ |
11.48 |
|
|
| Non-GAAP Reconciliation of Return on Average
Assets |
| (Dollars in Thousands, Unaudited) |
| |
Three Months Ended |
Twelve Months Ended |
| |
December 31 |
December 31 |
| Non-GAAP
Reconciliation of Net Income |
2017 |
2016 |
2017 |
2016 |
| Average Assets |
$ |
3,841,551 |
|
$ |
3,241,750 |
|
$ |
3,396,873 |
|
$ |
2,961,622 |
|
| |
|
|
|
|
| Net income as
reported |
|
7,650 |
|
|
5,603 |
|
|
33,117 |
|
|
23,912 |
|
| Merger expenses |
|
1,444 |
|
|
1,354 |
|
|
3,656 |
|
|
6,827 |
|
| Tax effect |
|
(418 |
) |
|
(416 |
) |
|
(1,003 |
) |
|
(1,998 |
) |
| Net income excluding
merger expenses |
|
8,676 |
|
|
6,541 |
|
|
35,770 |
|
|
28,741 |
|
| |
|
|
|
|
| Gain on sale of
investment securities |
|
- |
|
|
(961 |
) |
|
(38 |
) |
|
(1,836 |
) |
| Tax effect |
|
- |
|
|
336 |
|
|
13 |
|
|
643 |
|
| Net income excluding
gain on sale of investment securities |
|
8,676 |
|
|
5,916 |
|
|
35,745 |
|
|
27,548 |
|
| |
|
|
|
|
| Prepayment penalties on
borrowings |
|
- |
|
|
4,839 |
|
|
- |
|
|
4,839 |
|
| Tax effect |
|
- |
|
|
(1,694 |
) |
|
- |
|
|
(1,694 |
) |
| Net income excluding
prepayment penalties on borrowings |
|
8,676 |
|
|
9,061 |
|
|
35,745 |
|
|
30,693 |
|
| |
|
|
|
|
| Gain on remeasurement
of equity interest in Lafayette |
|
(530 |
) |
|
- |
|
|
(530 |
) |
|
- |
|
| Tax effect |
|
78 |
|
|
- |
|
|
78 |
|
|
- |
|
| Net income excluding
gain on remeasurement of equity interest in Lafayette |
|
8,224 |
|
|
9,061 |
|
|
35,293 |
|
|
30,693 |
|
| |
|
|
|
|
| Tax reform bill
impact |
|
2,426 |
|
|
- |
|
|
2,426 |
|
|
- |
|
| Net income excluding
tax reform bill impact |
|
10,650 |
|
|
9,061 |
|
|
37,719 |
|
|
30,693 |
|
| |
|
|
|
|
| Acquisition-related
purchase accounting adjustments (PAUs) |
|
(868 |
) |
|
(900 |
) |
|
(3,484 |
) |
|
(2,304 |
) |
| Tax effect |
|
304 |
|
|
315 |
|
|
1,219 |
|
|
807 |
|
| Net income excluding
PAUs |
$ |
10,086 |
|
$ |
8,476 |
|
$ |
35,454 |
|
$ |
29,196 |
|
| |
|
|
|
|
| Non-GAAP
Reconciliation of Return on Average Assets |
|
| Return on average
assets as reported |
|
0.79 |
% |
|
0.69 |
% |
|
0.97 |
% |
|
0.81 |
% |
| Merger expenses |
|
0.15 |
% |
|
0.17 |
% |
|
0.11 |
% |
|
0.23 |
% |
| Tax effect |
|
-0.04 |
% |
|
-0.05 |
% |
|
-0.03 |
% |
|
-0.07 |
% |
| Return on average
assets excluding merger expenses |
|
0.90 |
% |
|
0.81 |
% |
|
1.05 |
% |
|
0.97 |
% |
| |
|
|
|
|
| Gain on sale of
investment securities |
|
0.00 |
% |
|
-0.12 |
% |
|
0.00 |
% |
|
-0.06 |
% |
| Tax effect |
|
0.00 |
% |
|
0.04 |
% |
|
0.00 |
% |
|
0.02 |
% |
| Return on average
assets excluding gain on sale of investment securities |
|
0.90 |
% |
|
0.73 |
% |
|
1.05 |
% |
|
0.93 |
% |
| |
|
|
|
|
| Prepayment penalties on
borrowings |
|
0.00 |
% |
|
0.60 |
% |
|
0.00 |
% |
|
0.17 |
% |
| Tax effect |
|
0.00 |
% |
|
-0.21 |
% |
|
0.00 |
% |
|
-0.06 |
% |
| Return on average
assets excluding prepayment penalties on borrowings |
|
0.90 |
% |
|
1.12 |
% |
|
1.05 |
% |
|
1.04 |
% |
| |
|
|
|
|
| Gain on remeasurement
of equity interest in Lafayette |
|
-0.05 |
% |
|
0.00 |
% |
|
-0.02 |
% |
|
0.00 |
% |
| Tax effect |
|
0.01 |
% |
|
0.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
| Return on average
assets excluding gain on remeasurement of equity interest in
Lafayette |
|
0.86 |
% |
|
1.12 |
% |
|
1.03 |
% |
|
1.04 |
% |
| |
|
|
|
|
| Tax reform bill
impact |
|
0.25 |
% |
|
0.00 |
% |
|
0.07 |
% |
|
0.00 |
% |
| Return on average
assets excluding tax reform bill impact |
|
1.11 |
% |
|
1.12 |
% |
|
1.10 |
% |
|
1.04 |
% |
| |
|
|
|
|
| Acquisition-related
PAUs |
|
-0.09 |
% |
|
-0.11 |
% |
|
-0.10 |
% |
|
-0.08 |
% |
| Tax effect |
|
0.03 |
% |
|
0.04 |
% |
|
0.04 |
% |
|
0.03 |
% |
| Return on average
assets excluding PAUs |
|
1.05 |
% |
|
1.05 |
% |
|
1.04 |
% |
|
0.99 |
% |
| |
|
|
|
|
About Horizon
Horizon Bancorp is an independent, commercial
bank holding company serving northern and central Indiana, and
southern, central and the Great Lakes Bay regions of Michigan
through its commercial banking subsidiary Horizon Bank. 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.
Contact:Horizon BancorpMark E. SecorChief
Financial Officer(219)
873-2611
Fax: (219) 874-9280
| |
| HORIZON BANCORP |
| Financial Highlights |
| (Dollars in thousands except share and per
share data and ratios, Unaudited) |
|
|
| |
December 31 |
September 30 |
June 30 |
March 31 |
December 31 |
| |
2017 |
2017 |
2017 |
2017 |
2016 |
| Balance
sheet: |
|
| Total assets |
$ |
3,964,303 |
|
$ |
3,519,501 |
|
$ |
3,321,178 |
|
$ |
3,169,643 |
|
$ |
3,141,156 |
|
| Investment
securities |
|
710,113 |
|
|
708,449 |
|
|
704,525 |
|
|
673,090 |
|
|
633,025 |
|
| Commercial loans |
|
1,617,870 |
|
|
1,273,790 |
|
|
1,143,761 |
|
|
1,106,471 |
|
|
1,069,956 |
|
| Mortgage warehouse
loans |
|
94,508 |
|
|
95,483 |
|
|
123,757 |
|
|
89,360 |
|
|
135,727 |
|
| Residential mortgage
loans |
|
606,760 |
|
|
571,062 |
|
|
549,997 |
|
|
533,646 |
|
|
531,874 |
|
| Consumer loans |
|
512,857 |
|
|
485,490 |
|
|
450,209 |
|
|
417,476 |
|
|
398,429 |
|
| Earnings assets |
|
3,563,307 |
|
|
3,153,230 |
|
|
2,990,924 |
|
|
2,845,922 |
|
|
2,801,030 |
|
| Non-interest bearing
deposit accounts |
|
601,805 |
|
|
563,536 |
|
|
508,305 |
|
|
502,400 |
|
|
496,248 |
|
| Interest bearing
transaction accounts |
|
1,712,246 |
|
|
1,536,169 |
|
|
1,401,407 |
|
|
1,432,228 |
|
|
1,499,120 |
|
| Time deposits |
|
566,952 |
|
|
508,570 |
|
|
452,208 |
|
|
509,071 |
|
|
475,842 |
|
| Borrowings |
|
564,157 |
|
|
458,152 |
|
|
485,304 |
|
|
319,993 |
|
|
267,489 |
|
| Subordinated
debentures |
|
37,653 |
|
|
37,607 |
|
|
37,562 |
|
|
37,516 |
|
|
37,456 |
|
| Total stockholders'
equity |
|
457,078 |
|
|
392,055 |
|
|
357,259 |
|
|
348,575 |
|
|
340,855 |
|
|
|
| Income
statement: |
Three months ended |
| Net interest
income |
$ |
31,455 |
|
$ |
27,879 |
|
$ |
27,198 |
|
$ |
25,568 |
|
$ |
20,939 |
|
| Provision for loan
losses |
|
1,100 |
|
|
710 |
|
|
330 |
|
|
330 |
|
|
623 |
|
| Non-interest
income |
|
9,344 |
|
|
8,021 |
|
|
8,212 |
|
|
7,559 |
|
|
9,484 |
|
| Non-interest
expenses |
|
26,291 |
|
|
24,513 |
|
|
22,488 |
|
|
21,521 |
|
|
22,588 |
|
| Income tax expense |
|
5,758 |
|
|
2,506 |
|
|
3,520 |
|
|
3,052 |
|
|
1,609 |
|
| Net income |
|
7,650 |
|
|
8,171 |
|
|
9,072 |
|
|
8,224 |
|
|
5,603 |
|
| Preferred stock
dividend |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
| Net income available to
common shareholders |
$ |
7,650 |
|
$ |
8,171 |
|
$ |
9,072 |
|
$ |
8,224 |
|
$ |
5,603 |
|
|
|
| Per share
data: |
|
| Basic earnings per
share (1) |
$ |
0.30 |
|
$ |
0.36 |
|
$ |
0.41 |
|
$ |
0.37 |
|
$ |
0.25 |
|
| Diluted earnings per
share (1) |
|
0.30 |
|
|
0.36 |
|
|
0.41 |
|
|
0.37 |
|
|
0.25 |
|
| Cash dividends declared
per common share (1) |
|
0.13 |
|
|
0.13 |
|
|
0.13 |
|
|
0.11 |
|
|
0.11 |
|
| Book value per common
share (1) |
|
17.90 |
|
|
16.81 |
|
|
16.11 |
|
|
15.72 |
|
|
15.37 |
|
| Tangible book value per
common share (1) |
|
12.72 |
|
|
12.38 |
|
|
12.20 |
|
|
11.79 |
|
|
11.48 |
|
| Market value -
high |
|
29.21 |
|
|
29.17 |
|
|
27.50 |
|
|
28.09 |
|
|
28.41 |
|
| Market value - low |
$ |
25.99 |
|
$ |
25.30 |
|
$ |
24.73 |
|
$ |
24.91 |
|
$ |
17.84 |
|
| Weighted average shares
outstanding - Basic |
|
25,140,800 |
|
|
22,580,160 |
|
|
22,176,465 |
|
|
22,175,526 |
|
|
22,155,549 |
|
| Weighted average shares
outstanding - Diluted |
|
25,264,675 |
|
|
22,715,273 |
|
|
22,322,390 |
|
|
22,326,071 |
|
|
22,283,722 |
|
|
|
| Key
ratios: |
|
| Return on average
assets |
|
0.79 |
% |
|
0.96 |
% |
|
1.12 |
% |
|
1.07 |
% |
|
0.69 |
% |
| Return on average
common stockholders' equity |
|
6.75 |
|
|
8.92 |
|
|
10.24 |
|
|
9.66 |
|
|
6.49 |
|
| Net interest
margin |
|
3.71 |
|
|
3.71 |
|
|
3.84 |
|
|
3.80 |
|
|
2.92 |
|
| Loan loss reserve to
total loans |
|
0.58 |
|
|
0.64 |
|
|
0.66 |
|
|
0.70 |
|
|
0.69 |
|
| Non-performing loans to
loans |
|
0.58 |
|
|
0.51 |
|
|
0.51 |
|
|
0.46 |
|
|
0.50 |
|
| Average equity to
average assets |
|
11.70 |
|
|
10.74 |
|
|
10.94 |
|
|
11.12 |
|
|
10.59 |
|
| Bank only capital
ratios: |
|
|
|
|
|
| Tier 1 capital to
average assets |
|
9.94 |
|
|
9.90 |
|
|
9.87 |
|
|
10.26 |
|
|
9.93 |
|
| Tier 1 capital to risk
weighted assets |
|
12.18 |
|
|
12.33 |
|
|
12.82 |
|
|
13.40 |
|
|
13.33 |
|
| Total capital to risk
weighted assets |
|
12.72 |
|
|
12.93 |
|
|
13.44 |
|
|
14.05 |
|
|
13.98 |
|
|
|
| Loan
data: |
|
| Substandard loans |
$ |
46,162 |
|
$ |
36,883 |
|
$ |
34,870 |
|
$ |
30,865 |
|
$ |
30,361 |
|
| 30 to 89 days
delinquent |
|
9,329 |
|
|
6,284 |
|
|
4,555 |
|
|
5,476 |
|
|
6,315 |
|
| |
|
|
|
|
|
| 90 days and greater
delinquent - accruing interest |
$ |
167 |
|
$ |
162 |
|
$ |
160 |
|
$ |
245 |
|
$ |
241 |
|
| Trouble debt
restructures - accruing interest |
|
1,958 |
|
|
2,015 |
|
|
1,924 |
|
|
1,647 |
|
|
1,492 |
|
| Trouble debt
restructures - non-accrual |
|
1,013 |
|
|
1,192 |
|
|
668 |
|
|
998 |
|
|
1,014 |
|
| Non-accrual loans |
|
13,276 |
|
|
9,065 |
|
|
8,811 |
|
|
6,944 |
|
|
7,936 |
|
| Total non-performing
loans |
$ |
16,414 |
|
$ |
12,434 |
|
$ |
11,563 |
|
$ |
9,834 |
|
$ |
10,683 |
|
|
|
| (1)
Adjusted for 3:2 stock split on November 14, 2016 |
|
| |
| HORIZON BANCORP |
| Financial Highlights |
| (Dollars in thousands except share and per
share data and ratios, Unaudited) |
| |
| |
December 31 |
December 31 |
| |
2017 |
2016 |
| Balance
sheet: |
|
| Total assets |
$ |
3,964,303 |
|
$ |
3,141,156 |
|
| Investment
securities |
|
710,113 |
|
|
633,025 |
|
| Commercial loans |
|
1,617,870 |
|
|
1,069,956 |
|
| Mortgage warehouse
loans |
|
94,508 |
|
|
135,727 |
|
| Residential mortgage
loans |
|
606,760 |
|
|
531,874 |
|
| Consumer loans |
|
512,857 |
|
|
398,429 |
|
| Earnings assets |
|
3,563,307 |
|
|
2,801,030 |
|
| Non-interest bearing
deposit accounts |
|
601,805 |
|
|
496,248 |
|
| Interest bearing
transaction accounts |
|
1,712,246 |
|
|
1,499,120 |
|
| Time deposits |
|
566,952 |
|
|
475,842 |
|
| Borrowings |
|
564,157 |
|
|
267,489 |
|
| Subordinated
debentures |
|
37,653 |
|
|
37,456 |
|
| Total stockholders'
equity |
|
457078 |
|
|
340855 |
|
| |
| Income
statement: |
Twelve months ended |
| Net interest
income |
$ |
112,100 |
|
$ |
85,992 |
|
| Provision for loan
losses |
|
2,470 |
|
|
1,842 |
|
| Non-interest
income |
|
33,136 |
|
|
35,455 |
|
| Non-interest
expenses |
|
94,813 |
|
|
86,892 |
|
| Income tax expense |
|
14,836 |
|
|
8,801 |
|
| Net income |
|
33,117 |
|
|
23,912 |
|
| Preferred stock
dividend |
|
- |
|
|
(42 |
) |
| Net income available to
common shareholders |
$ |
33,117 |
|
$ |
23,870 |
|
| |
| Per share
data: |
|
| Basic earnings per
share (1) |
$ |
1.44 |
|
$ |
1.19 |
|
| Diluted earnings per
share (1) |
|
1.43 |
|
|
1.19 |
|
| Cash dividends declared
per common share (1) |
|
0.50 |
|
|
0.41 |
|
| Book value per common
share (1) |
|
17.90 |
|
|
15.37 |
|
| Tangible book value per
common share (1) |
|
12.72 |
|
|
11.48 |
|
| Market value -
high |
|
29.21 |
|
|
28.41 |
|
| Market value - low |
$ |
24.73 |
|
$ |
15.41 |
|
| Weighted average shares
outstanding - Basic |
|
23,035,824 |
|
|
19,987,728 |
|
| Weighted average shares
outstanding - Diluted |
|
23,183,287 |
|
|
20,082,410 |
|
| |
| Key
ratios: |
|
| Return on average
assets |
|
0.97 |
% |
|
0.81 |
% |
| Return on average
common stockholders' equity |
|
8.74 |
|
|
7.92 |
|
| Net interest
margin |
|
3.75 |
|
|
3.29 |
|
| Loan loss reserve to
total loans |
|
0.58 |
|
|
0.69 |
|
| Non-performing loans to
loans |
|
0.58 |
|
|
0.50 |
|
| Average equity to
average assets |
|
11.15 |
|
|
10.22 |
|
| Bank only capital
ratios: |
|
|
| Tier 1 capital to
average assets |
|
9.94 |
|
|
9.93 |
|
| Tier 1 capital to risk
weighted assets |
|
12.18 |
|
|
13.33 |
|
| Total capital to risk
weighted assets |
|
12.72 |
|
|
13.98 |
|
| |
| Loan
data: |
|
| Substandard loans |
$ |
46,162 |
|
$ |
30,361 |
|
| 30 to 89 days
delinquent |
|
9,329 |
|
|
6,315 |
|
| |
|
|
| 90 days and greater
delinquent - accruing interest |
$ |
167 |
|
$ |
241 |
|
| Trouble debt
restructures - accruing interest |
|
1,958 |
|
|
1,492 |
|
| Trouble debt
restructures - non-accrual |
|
1,013 |
|
|
1,014 |
|
| Non-accrual loans |
|
13,276 |
|
|
7,936 |
|
| Total non-performing
loans |
$ |
16,414 |
|
$ |
10,683 |
|
| |
| (1)
Adjusted for 3:2 stock split on November 14, 2016 |
|
| |
|
|
HORIZON BANCORP |
| |
|
|
Allocation of the Allowance for Loan and Lease
Losses |
|
|
(Dollars in Thousands, Unaudited) |
| |
| |
December 31 |
September 30 |
June 30 |
March 31 |
December 31 |
| |
2017 |
2017 |
2017 |
2017 |
2016 |
| Commercial |
$ |
8,634 |
|
$ |
7,877 |
|
$ |
7,617 |
|
$ |
7,600 |
|
$ |
6,579 |
| Real estate |
|
2,188 |
|
|
2,129 |
|
|
1,750 |
|
|
1,697 |
|
|
2,090 |
| Mortgage
warehousing |
|
1,030 |
|
|
1,048 |
|
|
1,090 |
|
|
1,042 |
|
|
1,254 |
| Consumer |
|
4,542 |
|
|
4,532 |
|
|
4,570 |
|
|
4,715 |
|
|
4,914 |
| Total |
$ |
16,394 |
|
$ |
15,586 |
|
$ |
15,027 |
|
$ |
15,054 |
|
$ |
14,837 |
|
|
|
|
| |
|
| |
Net Charge-offs (Recoveries) |
| |
(Dollars in Thousands, Unaudited) |
| |
|
| |
Three Months Ended |
| |
December 31 |
September 30 |
June 30 |
March 31 |
December 31 |
| |
2017 |
2017 |
2017 |
2017 |
2016 |
| Commercial |
$ |
50 |
|
$ |
169 |
|
$ |
24 |
|
$ |
(134 |
) |
$ |
49 |
| Real estate |
|
(9 |
) |
|
24 |
|
|
(8 |
) |
|
38 |
|
|
64 |
| Mortgage
warehousing |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
| Consumer |
|
251 |
|
|
(42 |
) |
|
341 |
|
|
209 |
|
|
197 |
| Total |
$ |
292 |
|
$ |
151 |
|
$ |
357 |
|
$ |
113 |
|
$ |
310 |
|
|
| |
Total Non-performing Loans |
| |
(Dollars in Thousands, Unaudited) |
| |
|
| |
December 31 |
September 30 |
June 30 |
March 31 |
December 31 |
| |
2017 |
2017 |
2017 |
2017 |
2016 |
| Commercial |
$ |
7,141 |
|
$ |
3,869 |
|
$ |
2,794 |
|
$ |
1,530 |
|
$ |
2,432 |
| Real estate |
|
5,716 |
|
|
5,545 |
|
|
5,285 |
|
|
5,057 |
|
|
5,022 |
| Mortgage
warehousing |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
| Consumer |
|
3,557 |
|
|
3,456 |
|
|
3,484 |
|
|
3,247 |
|
|
3,229 |
| Total |
$ |
16,414 |
|
$ |
12,870 |
|
$ |
11,563 |
|
$ |
9,834 |
|
$ |
10,683 |
|
|
| |
Other Real Estate Owned and Repossessed
Assets |
| |
(Dollars in Thousands, Unaudited) |
| |
|
| |
December 31 |
September 30 |
June 30 |
March 31 |
December 31 |
| |
2017 |
2017 |
2017 |
2017 |
2016 |
| Commercial |
$ |
578 |
|
$ |
324 |
|
$ |
409 |
|
$ |
542 |
|
$ |
542 |
| Real estate |
|
200 |
|
|
1,443 |
|
|
1,805 |
|
|
2,413 |
|
|
2,648 |
| Mortgage
warehousing |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
| Consumer |
|
60 |
|
|
26 |
|
|
21 |
|
|
20 |
|
|
26 |
| Total |
$ |
838 |
|
$ |
1,793 |
|
$ |
2,235 |
|
$ |
2,975 |
|
$ |
3,216 |
|
|
|
|
| HORIZON BANCORP AND SUBSIDIARIES |
| Average Balance Sheets |
| (Dollar Amounts in Thousands, Unaudited) |
| |
|
|
|
|
|
| |
|
|
Three Months Ended |
|
Three Months Ended |
| |
|
|
December 31, 2017 |
|
December 31, 2016 |
| |
|
|
Average |
|
Average |
|
Average |
|
Average |
| |
|
|
Balance |
Interest |
Rate |
|
Balance |
Interest |
Rate |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
Interest-earning assets |
|
|
|
|
|
|
|
| |
Federal
funds sold |
$ |
10,175 |
|
$ |
24 |
0.94 |
% |
|
$ |
27,034 |
|
$ |
42 |
0.62 |
% |
| |
Interest-earning deposits |
|
22,939 |
|
|
49 |
0.85 |
% |
|
|
33,901 |
|
|
73 |
0.86 |
% |
| |
Investment
securities - taxable |
|
422,864 |
|
|
2,196 |
2.06 |
% |
|
|
496,794 |
|
|
2,221 |
1.78 |
% |
| |
Investment
securities - non-taxable (1) |
|
309,902 |
|
|
1,875 |
3.38 |
% |
|
|
219,937 |
|
|
1,338 |
3.36 |
% |
| |
Loans
receivable (2)(3) |
|
2,705,289 |
|
|
32,630 |
4.82 |
% |
|
|
2,154,479 |
|
|
25,715 |
4.76 |
% |
| |
|
Total interest-earning
assets (1) |
|
3,471,169 |
|
|
36,774 |
4.32 |
% |
|
|
2,932,145 |
|
|
29,389 |
4.07 |
% |
| |
|
|
|
|
|
|
|
|
|
|
Non-interest-earning assets |
|
|
|
|
|
|
|
| |
Cash and
due from banks |
|
44,765 |
|
|
|
|
|
40,788 |
|
|
|
| |
Allowance
for loan losses |
|
(15,692 |
) |
|
|
|
|
(14,593 |
) |
|
|
| |
Other
assets |
|
341,309 |
|
|
|
|
|
283,410 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
$ |
3,841,551 |
|
|
|
|
$ |
3,241,750 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
Interest-bearing liabilities |
|
|
|
|
|
|
|
| |
Interest-bearing deposits |
$ |
2,278,651 |
|
$ |
2,586 |
0.45 |
% |
|
$ |
1,949,549 |
|
$ |
1,693 |
0.35 |
% |
| |
Borrowings |
|
451,866 |
|
|
2,150 |
1.89 |
% |
|
|
382,177 |
|
|
6,199 |
6.45 |
% |
| |
Subordinated debentures |
|
36,431 |
|
|
583 |
6.35 |
% |
|
|
38,084 |
|
|
558 |
5.83 |
% |
| |
|
Total interest-bearing
liabilities |
|
2,766,948 |
|
|
5,319 |
0.76 |
% |
|
|
2,369,810 |
|
|
8,450 |
1.42 |
% |
| |
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing liabilities |
|
|
|
|
|
|
|
| |
Demand
deposits |
|
603,733 |
|
|
|
|
|
504,274 |
|
|
|
| |
Accrued
interest payable and |
|
|
|
|
|
|
|
| |
other liabilities |
|
21,552 |
|
|
|
|
|
24,322 |
|
|
|
|
Stockholders' equity |
|
449,318 |
|
|
|
|
|
343,344 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
$ |
3,841,551 |
|
|
|
|
$ |
3,241,750 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Net
interest income/spread |
|
$ |
31,455 |
3.55 |
% |
|
|
$ |
20,939 |
2.65 |
% |
| |
|
|
|
|
|
|
|
|
|
| Net
interest income as a percent |
|
|
|
|
|
|
|
| of
average interest earning assets (1) |
|
|
3.71 |
% |
|
|
|
2.92 |
% |
| |
|
|
|
|
|
|
|
|
|
(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) |
| |
| |
|
|
Twelve Months Ended |
|
Twelve Months Ended |
| |
|
|
December 31, 2017 |
|
December 31, 2016 |
| |
|
|
Average |
|
Average |
|
Average |
|
Average |
| |
|
|
Balance |
Interest |
Rate |
|
Balance |
Interest |
Rate |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
Interest-earning assets |
|
|
|
|
|
|
|
| |
Federal
funds sold |
$ |
5,450 |
|
$ |
80 |
1.47 |
% |
|
$ |
17,142 |
|
$ |
95 |
0.55 |
% |
| |
Interest-earning deposits |
|
23,865 |
|
|
301 |
1.26 |
% |
|
|
34,506 |
|
|
278 |
0.81 |
% |
| |
Investment
securities - taxable |
|
417,993 |
|
|
8,705 |
2.08 |
% |
|
|
490,274 |
|
|
9,666 |
1.97 |
% |
| |
Investment
securities - non-taxable (1) |
|
292,030 |
|
|
7,068 |
3.39 |
% |
|
|
192,881 |
|
|
4,921 |
3.59 |
% |
| |
Loans
receivable (2)(3) |
|
2,335,126 |
|
|
112,329 |
4.83 |
% |
|
|
1,948,580 |
|
|
91,569 |
4.71 |
% |
| |
|
Total interest-earning
assets (1) |
|
3,074,464 |
|
|
128,483 |
4.29 |
% |
|
|
2,683,383 |
|
|
106,529 |
4.05 |
% |
| |
|
|
|
|
|
|
|
|
|
|
Non-interest-earning assets |
|
|
|
|
|
|
|
| |
Cash and
due from banks |
|
42,578 |
|
|
|
|
|
37,549 |
|
|
|
| |
Allowance
for loan losses |
|
(15,226 |
) |
|
|
|
|
(14,439 |
) |
|
|
| |
Other
assets |
|
295,057 |
|
|
|
|
|
255,129 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
$ |
3,396,873 |
|
|
|
|
$ |
2,961,622 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
Interest-bearing liabilities |
|
|
|
|
|
|
|
| |
Interest-bearing deposits |
$ |
2,045,896 |
|
$ |
7,901 |
0.39 |
% |
|
$ |
1,752,326 |
|
$ |
6,616 |
0.38 |
% |
| |
Borrowings |
|
381,488 |
|
|
6,178 |
1.62 |
% |
|
|
425,444 |
|
|
11,807 |
2.78 |
% |
| |
Subordinated debentures |
|
36,362 |
|
|
2,304 |
6.34 |
% |
|
|
49,834 |
|
|
2,114 |
4.24 |
% |
| |
|
Total interest-bearing
liabilities |
|
2,463,746 |
|
|
16,383 |
0.66 |
% |
|
|
2,227,604 |
|
|
20,537 |
0.92 |
% |
| |
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing liabilities |
|
|
|
|
|
|
|
| |
Demand
deposits |
|
533,852 |
|
|
|
|
|
417,900 |
|
|
|
| |
Accrued
interest payable and |
|
|
|
|
|
|
|
| |
other liabilities |
|
20,566 |
|
|
|
|
|
13,574 |
|
|
|
|
Stockholders' equity |
|
378,709 |
|
|
|
|
|
302,544 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
$ |
3,396,873 |
|
|
|
|
$ |
2,961,622 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Net
interest income/spread |
|
$ |
112,100 |
3.63 |
% |
|
|
$ |
85,992 |
3.13 |
% |
| |
|
|
|
|
|
|
|
|
|
| Net
interest income as a percent |
|
|
|
|
|
|
|
| of
average interest earning assets (1) |
|
|
3.75 |
% |
|
|
|
3.29 |
% |
| |
|
|
|
|
|
|
|
|
|
(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) |
| |
| |
December 31 |
December 31 |
| |
2017 |
2016 |
| |
(Unaudited) |
|
|
Assets |
|
|
| Cash and
due from banks |
$ |
76,441 |
|
$ |
70,832 |
|
|
Investment securities, available for sale |
|
509,665 |
|
|
439,831 |
|
|
Investment securities, held to maturity (fair value of $201,085 and
$194,086) |
|
200,448 |
|
|
193,194 |
|
| Loans
held for sale |
|
3,094 |
|
|
8,087 |
|
| Loans,
net of allowance for loan losses of $16,394 and $14,837 |
|
2,815,601 |
|
|
2,121,149 |
|
| Premises
and equipment, net |
|
75,529 |
|
|
66,357 |
|
| Federal
Reserve and Federal Home Loan Bank stock |
|
18,105 |
|
|
23,932 |
|
|
Goodwill |
|
119,880 |
|
|
76,941 |
|
| Other
intangible assets |
|
12,402 |
|
|
9,366 |
|
| Interest
receivable |
|
16,244 |
|
|
12,713 |
|
| Cash
value of life insurance |
|
75,931 |
|
|
74,134 |
|
| Other
assets |
|
40,963 |
|
|
44,620 |
|
|
Total assets |
$ |
3,964,303 |
|
$ |
3,141,156 |
|
|
Liabilities |
|
|
|
Deposits |
|
|
|
Non-interest bearing |
$ |
601,805 |
|
$ |
496,248 |
|
| Interest
bearing |
|
2,279,198 |
|
|
1,974,962 |
|
|
Total deposits |
|
2,881,003 |
|
|
2,471,210 |
|
|
Borrowings |
|
564,157 |
|
|
267,489 |
|
|
Subordinated debentures |
|
37,653 |
|
|
37,456 |
|
| Interest
payable |
|
886 |
|
|
472 |
|
| Other
liabilities |
|
23,526 |
|
|
23,674 |
|
|
Total liabilities |
|
3,507,225 |
|
|
2,800,301 |
|
| Commitments and
contingent liabilities |
|
|
| Stockholders’
Equity |
|
|
| Preferred
stock, Authorized, 1,000,000 shares |
|
|
| Issued 0
and 0 shares |
|
- |
|
|
- |
|
| Common
stock, no par value |
|
|
|
Authorized 66,000,000 shares(1) |
|
|
| Issued,
25,549,069 and 22,192,530 shares(1) |
|
|
|
Outstanding, 25,529,819 and 22,171,596 shares(1) |
|
- |
|
|
- |
|
|
Additional paid-in capital |
|
275,059 |
|
|
182,326 |
|
| Retained
earnings |
|
185,570 |
|
|
164,173 |
|
|
Accumulated other comprehensive loss |
|
(3,551 |
) |
|
(5,644 |
) |
|
Total stockholders’ equity |
|
457,078 |
|
|
340,855 |
|
|
Total liabilities and stockholders’ equity |
$ |
3,964,303 |
|
$ |
3,141,156 |
|
| |
|
|
| (1) Adjusted for 3:2
stock split on November 14, 2016 |
|
|
| |
|
|
| |
| HORIZON BANCORP AND SUBSIDIARIES |
| Condensed Consolidated Statements of
Income |
| (Dollar Amounts in Thousands, Except Per Share Data,
Unaudited) |
| |
| |
Three Months Ended |
Twelve Months Ended |
| |
December 31 |
December 31 |
| |
2017 |
2016 |
2017 |
2016 |
|
Interest Income |
|
|
|
|
| Loans
receivable |
$ |
32,630 |
$ |
25,715 |
$ |
112,329 |
$ |
91,569 |
|
|
Investment securities |
|
|
|
|
|
Taxable |
|
2,269 |
|
2,336 |
|
9,086 |
|
10,039 |
|
|
Tax exempt |
|
1,875 |
|
1,338 |
|
7,068 |
|
4,921 |
|
|
Total interest income |
|
36,774 |
|
29,389 |
|
128,483 |
|
106,529 |
|
|
Interest Expense |
|
|
|
|
|
Deposits |
|
2,586 |
|
1,693 |
|
7,901 |
|
6,616 |
|
| Borrowed
funds |
|
2,150 |
|
6,199 |
|
6,178 |
|
11,807 |
|
|
Subordinated debentures |
|
583 |
|
558 |
|
2,304 |
|
2,114 |
|
|
Total interest expense |
|
5,319 |
|
8,450 |
|
16,383 |
|
20,537 |
|
|
Net Interest Income |
|
31,455 |
|
20,939 |
|
112,100 |
|
85,992 |
|
| Provision
for loan losses |
|
1,100 |
|
623 |
|
2,470 |
|
1,842 |
|
|
Net Interest Income after Provision for Loan
Losses |
|
30,355 |
|
20,316 |
|
109,630 |
|
84,150 |
|
|
Non-interest Income |
|
|
|
|
| Service
charges on deposit accounts |
|
1,745 |
|
1,452 |
|
6,383 |
|
5,762 |
|
| Wire
transfer fees |
|
155 |
|
218 |
|
658 |
|
806 |
|
|
Interchange fees |
|
1,295 |
|
1,100 |
|
5,104 |
|
4,165 |
|
| Fiduciary
activities |
|
2,142 |
|
1,868 |
|
7,894 |
|
6,621 |
|
| Gains
(losses) on sale of investment securities (includes $0 and $961 for
the |
|
|
|
|
|
three months ended December 31, 2017 and 2016, respectively, and
$38 and $1,836 for |
|
|
|
|
|
the twelve months ended December 31, 2017 and 2016, respectively,
related to accumulated other comprehensive earnings
reclassifications) |
|
- |
|
961 |
|
38 |
|
1,836 |
|
| Gain on
sale of mortgage loans |
|
1,988 |
|
2,504 |
|
7,906 |
|
11,675 |
|
| Mortgage
servicing income net of impairment |
|
408 |
|
552 |
|
1,583 |
|
1,908 |
|
| Increase
in cash value of bank owned life insurance |
|
451 |
|
498 |
|
1,797 |
|
1,643 |
|
| Other
income |
|
1,160 |
|
331 |
|
1,773 |
|
1,039 |
|
|
Total non-interest income |
|
9,344 |
|
9,484 |
|
33,136 |
|
35,455 |
|
|
Non-interest Expense |
|
|
|
|
| Salaries
and employee benefits |
|
14,289 |
|
11,421 |
|
51,375 |
|
44,013 |
|
| Net
occupancy expenses |
|
2,487 |
|
2,311 |
|
9,535 |
|
8,322 |
|
| Data
processing |
|
1,603 |
|
1,512 |
|
5,914 |
|
5,367 |
|
|
Professional fees |
|
693 |
|
562 |
|
2,490 |
|
2,752 |
|
| Outside
services and consultants |
|
2,027 |
|
1,880 |
|
7,018 |
|
7,863 |
|
| Loan
expense |
|
1,398 |
|
1,496 |
|
4,970 |
|
5,582 |
|
| FDIC
insurance expense |
|
270 |
|
280 |
|
1,046 |
|
1,559 |
|
| Other
losses |
|
182 |
|
174 |
|
368 |
|
684 |
|
| Other
expense |
|
3,342 |
|
2,952 |
|
12,097 |
|
10,750 |
|
|
Total non-interest expense |
|
26,291 |
|
22,588 |
|
94,813 |
|
86,892 |
|
|
Income Before Income
Tax |
|
13,408 |
|
7,212 |
|
47,953 |
|
32,713 |
|
|
|
|
|
|
|
|
|
|
|
|
| Income
tax expense (includes $0 and $366 for the three months ended
December 31, 2017 |
|
|
|
|
| and 2016,
respectively, and $13 and $643 for the twelve months ended December
31, 2017 and 2016, respectively, related to income tax expense
from |
|
|
|
|
|
reclassification items) |
|
5,758 |
|
1,609 |
|
14,836 |
|
8,801 |
|
|
Net Income |
|
7,650 |
|
5,603 |
|
33,117 |
|
23,912 |
|
| Preferred
stock dividend |
|
- |
|
- |
|
- |
|
(42 |
) |
|
Net Income Available to Common Shareholders |
$ |
7,650 |
$ |
5,603 |
$ |
33,117 |
$ |
23,870 |
|
|
Basic Earnings Per Share |
$ |
0.30 |
$ |
0.25 |
$ |
1.44 |
$ |
1.19 |
|
|
Diluted Earnings Per Share |
|
0.30 |
|
0.25 |
|
1.43 |
|
1.19 |
|
| |
|
|
|
|
Horizon Bancorp (NASDAQ:HBNC)
Historical Stock Chart
From Apr 2024 to May 2024
Horizon Bancorp (NASDAQ:HBNC)
Historical Stock Chart
From May 2023 to May 2024
